Digitalization has become Ukraine’s flagship topic and the state priority during the last two years. Taking the lead internally, the Ministry of Digital Transformation has the ambition to make Ukraine a world champion in being digital, and we are already the first ones who can use digital IDs with absolutely no internal restrictions. Here is how Ukraine moves forward with the concept of building a digital state and becoming the world’s leading country in terms of providing services for citizens and businesses.
Diia is a new level of interaction between the state and citizens: convenient, invisible, humane. It is the only brand that combines a mobile application with access to citizens’ digital documents, and a single portal of public services for the population and business. The main goal is to make 100% public services available online. As of December 2022, almost 18,5 million Ukrainians have updated the Diia application. There are more than 21,7 million users of the Diia portal by now — over 70 government services are available online. Mobile application Diia allows Ukrainians to access 14 digital documents (ID card, foreign biometric passport, student card, driver’s license, vehicle registration certificate, vehicle insurance policy, tax number, birth certificate, IDP certificate) and 21 services in total. Just recently, Ukraine has become the first country with a digital ID that is valid and can be used everywhere within the country and the fourth in Europe to launch a digital driving licence. All digital documents in Diia now have the same legal force as their plastic or paper counterparts. Using the Diia app, Ukrainians can also share digital copies of the documents, and pay debts or fines.
Diia portal proves that if the service does not exist online, it will not exist at all! That is why some business processes are going digital as well. Diia portal is a single state portal with over 70 digital services. There you can experience the fastest business registration in the world — you need only 2 seconds to become an entrepreneur in Ukraine, and 30 minutes to found a limited liability company. The service has already been used by 1 000 000 private entrepreneurs and more than 14 000 companies.
On Diia portal, you can obtain permits and licenses as well. The next goal — automatic business registration.
Ukraine is also a world leader in the number of available online services for parents of newborns — we are going digital even here! The service eMalyatko (‘eBaby’) allows us to receive up to 10 services related to the birth of a child in 20 minutes just by 1 application.
Another milestone for Ukraine on its way to becoming a digitalized country is the IT sector development. The Ukrainian IT sector is represented by more than 280,000 highly qualified specialists. It provides about 4% of the country’s GDP and almost 40% of Ukrainian export of services. The branch shows stable growth annually, mainly due to exports. In 2021, the Ukrainian IT industry grew by 36% from $5 billion to $6.8 billion in terms of exports. Ukraine was one of the largest exporters of IT services and goods and had the largest number of outsourced developers in Eastern Europe. The main driving force for the industry’s development in Ukraine has been the ever-growing demand for the digitalization of business processes globally.
In order to stimulate the development of such companies in Ukraine, Diia.City was launched two weeks before the war. This is a unique tax and legal space for IT businesses. Our goal is to transform Ukraine into the largest European IT hub. Diia.City provides IT companies with one of the best tax systems in Europe, flexible forms of cooperation with specialists, VC common legal tools, and tax incentives for investments.
Despite the war, the project continues to work and grow. Today there are more than 400 companies in Diia.City, including more than 330 of them who became residents during the war. In total, more than 33 thousand specialists work in these companies.
During the war, the Ukrainian IT industry has been demonstrating extraordinary resilience. It maintains positive growth dynamics and remains the only industry increasing export and generating foreign exchange earnings in the Ukrainian economy during the war. By May, 85% of companies had resumed operating activities to the volumes of pre-war time. During the ten months of 2022, the export of computer services increased by 10% and amounted to $6 bln.