NAIROBI — Discussions on artificial intelligence (AI) and its role in Africa’s informal economy took center stage at the Smarter Informal Markets panel during GITEX Kenya, where industry leaders examined how technology can support, rather than disrupt, informal market systems.
Caroline Mutuku, speaking at the panel, emphasized that the informal economy should be viewed as “intelligence to be extended” rather than a problem to be formalised or eliminated.
She raised a central question guiding the discussion: “Can AI formalise opportunity without formalising people?”—arguing that the answer is yes, but only if technology is designed with a deep understanding of informal market realities.
AI-driven outcomes at Glovo Kenya
Mutuku highlighted several data-driven outcomes from Glovo Kenya, noting that AI and analytics have already contributed to measurable business and ecosystem improvements.
According to her, the platform has achieved a 40% revenue uplift through customer personalisation and a 78% improvement in customer retention.
She also pointed to the use of predictive analytics for merchants, explaining that consumer demand patterns vary significantly depending on timing and context—for example, mid-week public holidays behave differently from end-of-month periods.
Additionally, she noted that Glovo’s logistics systems rely heavily on location intelligence generated from real delivery data, helping the platform navigate urban environments that traditional mapping systems often fail to accurately capture.
Focus on data ownership and shared value
Beyond performance metrics, Mutuku stressed that the most important measure of success is whether all stakeholders—merchants, riders, and customers—benefit from the data generated within the platform ecosystem.
She argued that digital platforms should be built to integrate into existing market structures rather than impose external systems onto them.
Mutuku also called for a fairer approach to data value distribution, stating that those who generate local data should be among the first to benefit from it.
Broader GITEX Kenya discussions
The remarks were delivered during GITEX Kenya, a major technology and innovation forum that brings together policymakers, industry leaders, and digital economy stakeholders to explore the future of technology in Africa.
The panel reflected growing interest in how AI can be applied to strengthen informal markets, improve efficiency, and expand economic opportunities without displacing the people who depend on them.
