How digitisation spurs economic growth in Estonia

Estonia's ambassador to Kenya Daniel Schaer.

Estonia is widely recognised as one of the most digitised countries in the world, with notable achievements in education, employment, and leadership accountability.

Estonia's ambassador to Kenya Daniel Schaer on Wednesday highlighted key aspects of Estonia's digitisation that have fueled its economic growth.

The process begins at birth, where every individual is assigned an identification number used throughout their life.

"At birth, you're given a number that follows you through your entire life. Even in the hospital, you can't use a name in a message, just the number. That same number is used to track your benefits and to enroll you in school," Schaer explained while appearing on Spice FM.

Estonia's identification system relies on three main components; a single electronic identity, an interoperability system that securely shares data, and a framework of individual trust.

From birth, a child's identification number is linked to their parent's until they reach adulthood and can manage their information.

"Every database is maintained by the relevant ministry or institution, and information is shared through a safe, secure line, starting as early as kindergarten," he added.

Schaer also noted how Estonia has enhanced its education system through digitization. The country is innovating its curriculum by integrating technology, with teachers using electronic components to guide learning.

Schaer noted that while Estonia has nearly full employment, challenges remain in certain sectors.

"We have almost full employment, but there are gaps in some areas. The challenge in our education system is that traditional methods don't always prepare students for the job market," he said.

To address these challenges, Estonia has supported startup companies that create jobs for young people aged 20 to 30.

"The founders of these companies pooled their resources to fund a coding school. Students who complete their studies there graduate with a job, not just a diploma," Schaer explained.

Estonia's education system is also evolving to offer micro-courses that provide additional skills to graduates, helping them adapt to different job sectors.

Reflecting on his experience as an election observer in Kenya in 2022, Schaer noted that digitization in Kenya is still in progress.

"But what I've understood in Kenya is that your ID is part of your identity. E-voting is the biggest trust a citizen can give to their government," he remarked.

The Estonia envoy explained that digitisation has streamlined processes in Estonia, saving time through innovations like e-signatures for online applications. The entire country has been digitally mapped, with information on both private and public enterprises, including their financial status, available online.

The ambassador also expressed Estonia's interest in learning from Kenya on green and climate change issues and establishing partnerships.

"Kenya is a leader in green and climate initiatives in Africa. We're looking to partner with local companies for joint ventures here in Kenya or the region. I see Kenya as a gateway to Africa for Estonia, and I hope Estonia can be a gateway to the European Union for Kenya," he said.