At a country level, digitalization is seen as a driver of economic growth and skilled jobs creation. While the term “digital economy” is not new, recent developments mean policy makers must now rethink their digitalization agendas. Firstly, digitalization has become a critical factor in maintaining economic competitiveness, as it permeates all economic sectors, disrupting traditional production and exchanges and creating new growth opportunities. Digitalization is no longer optional – those that don’t adopt it risk falling behind.

Foreign direct investment (FDI) is a catalyst for digital economy development. With competition increasing as countries announce various FDI-attractive policies, policy makers must think strategically, not tactically. Nations should actively direct investments into targeted digital services with a focused approach. Investment policies, incentives, and the investor pitch must resonate with the country’s unique strengths – human capital, business ecosystem, or technological capabilities.

Micro, small and medium enterprises (MSMEs) are the backbone of the economy, accounting for well over 40 percent of GDP in most countries. While MSMEs have always needed government support, COVID-19 has dealt them a devastating blow from which many may not recover. Various governments have announced economic relief packages, but these do not always address the real challenges MSMEs face to reopen and grow their business in the post COVID-19 world, where they may need to operate in different ways and with disrupted supply chains and customer relationships.