Despite all the difficulties and challenges of the war, Ukraine continues to develop digital services for citizens and businesses, climbing international rankings. Thanks to the coordinated efforts of the Ministry of Digital Transformation, government bodies, and IT companies, Ukraine has achieved in a few years what takes other countries decades. How did Ukraine rise from 102nd place in the UN ranking in 2018 to be among the top five countries in terms of digital public service development? CEO of Kitsoft, Oleksandr Iefremov, and Executive Director of the IT Ukraine Association, Maria Shevchuk, share insights with SPEKA readers.
In 2024, Ukraine ranks 5th in the world for the development of digital public services and 1st in terms of E-Participation, which measures the readiness of citizens to engage in government processes via online platforms. This data is from the E-Government Development Index, a study evaluating 193 countries, developed by the United Nations. The active phase of digitalization in Ukraine began with the formation of the Ministry of Digital Transformation.
SPEKA, together with the Executive Director of the IT Ukraine Association, Maria Shevchuk, and the CEO of GovTech company Kitsoft, developer of the «Diia» portal, Oleksandr Iefremov, explores who handled digitalization efforts before 2019, what changed with the establishment of Ministry of Digital Transformation, and the key steps taken between 2019 and 2024.
Digitalization Before 2019
Before the establishment of the Ministry of Digital Transformation, there was no single agency comprehensively overseeing digitalization, notes Maria Shevchuk, Executive Director of the IT Ukraine Association. This was the responsibility of the State Agency for E-Governance of Ukraine, created in 2014. The agency was responsible for implementing government policy on e-governance, informatization, the development of the information society, and the formation and use of national electronic information resources, as well as digitalizing government bodies.
Maria Shevchuk, Executive Director of the IT Ukraine Association
Before the Ministry of Digital Transformation, Ukraine had various e-governance programs, each defining digitalization goals and directions for specific sectors over a set period, explains the CEO of Kitsoft Oleksandr Iefremov. However, these programs mainly focused on enhancing the capacity of government agencies, meaning that digitalization primarily affected internal processes rather than creating services for citizens. Each government body had its initiatives for digitalization.
The agency lacked the political support that MinDigit now enjoys, which led to slower development compared to Europe — progress was gradual and non-revolutionary. Nevertheless, progress was made, and the foundations laid by the agency and other government bodies were utilized in creating «Diia», emphasizes Oleksandr Iefremov.
CEO of Kitsoft Oleksandr Iefremov
One well-known and highly successful project implemented during the agency's tenure is the Prozorro system, launched in 2015, says Maria Shevchuk. This was one of the most successful reforms in combating corruption in public procurement, receiving numerous awards and significantly simplifying procurement processes.
Until 2019, there were separate digital projects, but there was no systematic approach that would cover all areas, emphasizes Maria Shevchuk. The government dealt with certain issues of digitalization, but there was no single body that would totally coordinate these processes.
The Arrival of the Ministry of Digital Transformation
The situation changed with the creation of the Ministry of Digital Transformation on September 2, 2019. The pace of digitalization accelerated rapidly. There are now all the necessary conditions for advancing digital reforms in various sectors, and digitalization officers have been appointed in every government body.
Since the establishment of the Ministry of Digital Transformation, Ukraine has risen from 102nd place in 2018 to 5th place in 2024 in the UN's Online Services Index. The digital state, which originated from President Volodymyr Zelenskyy's idea, has repeatedly proven its effectiveness in global rankings, the ministry said.
Ukrainians consider digitalization to be one of the most successful reforms. But the most important thing we have received is a high level of people's trust in our work!
— the Ministry of Digital Transformation.
According to Oleksandr Iefremov, digitalization has become a top priority for the state since the arrival of the Ministry of Digital Transformation. It was created to implement this approach.
Volodymyr Zelenskyy's idea of a «State in a Smartphone» was declared by the then presidential candidate and actually started to be implemented thanks to the Ministry of Digital Transformation and a clearer streamlining of government processes for digitalization.
— says Oleksandr Iefremov.
With the launch of the Ministry of Digital Transformation, innovations began to be introduced in the public sector, including the development of a common IT infrastructure necessary for the implementation of electronic public services, says Oleksandr Iefremov.
Electronic identification services
To log in to an electronic service for identification, we can use BankID, a banking application, a digital signature, or Diia - all of which are electronic identification infrastructure that allows us to verify a person remotely. According to Oleksandr Iefremov, this is the cornerstone for the implementation of electronic services.
Digital signature infrastructure
An electronic signature is electronic data that ensures the integrity of documents and identifies a person. An electronic signature can be stored in the form of a MobileID, a signature on an ID card, a signature on a token, or a secure storage medium.
An electronic signature can be used to sign electronic documents, use electronic services, register on government portals, etc. Documents with this signature have the same legal force as those signed in person.
The system of electronic interaction between authorities
The basic principle of e-services is that «data should run, not people», says Oleksandr Iefremov. Therefore, even if data is concentrated in different government agencies, it is transferred through the «Trembita» electronic interaction system, based on the Estonian X-Road, to provide an electronic service.
«Trembita» is a system that connects registries with their information systems and implements mechanisms for secure data exchange.
Key steps in the digitalization of public services in 2019-2024
Creation of «Diia»
The Ministry of Digital Transformation sought not only to digitize services but also to integrate them into a single ecosystem, so its most significant step was the Diia app and portal, which was presented in 2019 and launched in 2020.
The ability to store documents on a smartphone and transfer copies of them if necessary, receive government services, register a business or individual entrepreneur online, pay taxes and file declarations, sign documents, change the place of registration, and more - all this can be done in one service. Currently, the number of Diia users is more than 21 million Ukrainians, and the portal provides 130 services, 30 of which were added in 2023, says Maria Shevchuk.
«Diia» has become a trusted tool and has greatly simplified access to public services, says Oleksandr Iefremov.
For example, in many other countries, there are often scattered digital tools, and citizens do not always know where to find a particular service. With Diia, almost everyone clearly understands where to find popular services and how to use them.
— Oleksandr Iefremov.
Diia has also built a human, not bureaucratic, support system that helps users if something is not clear, says Oleksandr Iefremov. Even physical Administrative Service Centers are being transformed into Diia centers, which operate under a new paradigm, helping people get services rather than creating barriers.
Today, Diia is a whole ecosystem, says Maria Shevchuk. In addition to the main application, there are also sub-projects of Diia. This ecosystem continues to evolve, and the goal of the Ministry of Digital Transformation is to digitalize all public services for citizens.
The Diia project is known far beyond Ukraine. Last year, we participated in the Smart Country Convention in Berlin, an exhibition dedicated to GovTech (technologies in government). The Ukrainian experience aroused great interest - visitors were constantly interested in Diia, our services, and how we implemented it all. Delegations from different countries were actively studying our experience, and this indicates a high level of interest.
— Maria Shevchuk.
Chief Digital Transformation Officer (CDTO) positions
In addition to the creation of the Ministry of Digital Transformation itself, each government agency has created the position of CDTO (Chief Digital Transformation Officer), says Oleksandr Iefremov.
Chief Digital Transformation Officers are officials responsible for the implementation of digital services in each executive body. They work in synchronization with the Ministry of Digital Transformation, but are also subordinate to their ministries or departments, explains Maria Shevchuk.
They implement digitalization policies, coordinate sectoral digitalization, and integrate popular services and tools into Diia.
Low-code approach instead of development from scratch
Thanks to the standardization of IT infrastructure, there is no need to reinvent the wheel to collect data, identify a person, or transfer the results of a service, says Oleksandr Iefremov. This makes it possible to reuse existing tools and significantly speeds up all processes.
We also use a technology we developed, the Liquio low-code platform, to launch government services, including the Diia portal. This allows us to launch services very quickly — not to spend a lot of time developing individual solutions, but to create a continuous pipeline for launching new services. Moreover, thanks to the low-code approach, other companies or customers can also do this in parallel.
— Oleksandr Iefremov.
We also use a technology we developed, the Liquio low-code platform, to launch government services, including the Diia portal. This allows us to launch services very quickly - not to spend a lot of time developing individual solutions, but to create a continuous pipeline for launching new services. Moreover, thanks to the low-code approach, other companies or customers can also do this in parallel.
COVID certificates
Digitalization helps to respond to challenges very quickly. When the COVID-19 pandemic began, the Ministry of Digital Transformation responded quickly by creating COVID certificates in the Diia app, says Maria Shevchuk. It was the call of the times.
I am sure that the Ministry of Digital Transformation had other plans for further digitalization, but the COVID certificate has become a necessity.
— Maria Shevchuk.
COVID certificates on Diia
A COVID certificate in Diia is an electronic document containing information about vaccination and confirming that its holder is not a carrier of COVID-19. The domestic certificate was required to participate in public events within Ukraine, while the international certificate allowed traveling abroad.
Those who have completed the full course of vaccination can generate a COVID certificate in the Diia app, as well as receive an international certificate with a QR code through the Diia app. The Ukrainian certificate was recognized by the European Union before any other digital certificates, emphasizes Maria Shevchuk.
It was a project that stimulated massive downloads of the Diia app and accelerated its integration into the lives of citizens.
A self-employed proprietorship online
Another important service is opening a sole proprietorship online, which takes only a few minutes.
To open a sole proprietorship online, you only need to take a few steps. Click «Apply», log in or register in the citizen's account. Then fill out the online form and sign it with an electronic signature. After that, the application will be automatically sent to the Unified State Register for registration of the sole proprietorship. The status of the application can be checked in the citizen's account, and a notification of the result will be sent to the email address. A record of the sole proprietorship registration will appear in the Unified State Register within two business days. More information about registering a sole proprietorship online can be found on the Diia portal.
This project has significantly improved Ukraine's position in global rankings, including Doing Business. This index shows how easy and transparent it is to do business in countries. It is measured by various indicators every year. It is used, for example, by investors and everyone who makes decisions about whether to cooperate with a country or invest money.
The introduction of automated registration of individual entrepreneurs has made it easier to start a business and reduced corruption. Then, other business services (for self-employed proprietors, LLCs, construction workers, sailors, etc.) on the Diia portal made it easier to do business. Ukraine has improved its ranking in terms of transparency and ease of doing business and thus has become more attractive.
— Oleksandr Iefremov.
uResidency
The Cabinet of Ministers has recently approved a mechanism for foreigners to obtain e-residency status online. Now there is no need to be present in person to start a business in Ukraine.
uResidency is a turnkey business quickly, without paperwork and bureaucracy, from anywhere in the world, said Mykhailo Fedorov.
To become an e-resident, you just need to fill out an application in the application or on the uResidency portal — it takes 5-10 minutes. It will be checked quickly, and the resident will receive a qualified electronic signature (QES) at the consulate, without a single visit to Ukraine. Then he/she opens a sole proprietorship online, and all further interactions will be automatic.
— Mykhailo Fedorov on his Telegram channel.
uResidency. Screenshot
Reporting is fully automated: the bank calculates taxes, submits declarations and takes care of all bureaucratic processes without the need for physical interaction with institutions. Everything is done automatically, without human intervention, which eliminates the need for an accountant or lawyer — the system performs all their functions, said Mykhailo Fedorov.
E-residency is an important and revolutionary project for the economy, and it means constant additional budget revenues. For example, in Estonia, e-residency has been operating for 10 years and generates millions in taxes annually.
— Mykhailo Fedorov on his Telegram channel.
The program is currently available to citizens of India, Pakistan, Thailand, and Slovenia. In the first stage, they plan to involve about 1000 e-residents. More countries will follow.
Complex projects
In addition to the flagship projects that are immediately noticeable to all citizens, Maria Shevchuk notes, there are also systemic projects that citizens do not immediately notice.
For example, the digitalization of various registries, which makes it possible to provide services to users on their basis or to improve them so that users do not have to enter data manually but can check it by pulling it up from the registries. Sometimes digitalization or full automation of a particular area is impossible due to missing or outdated data in the registers.
Or a reduction in the number of certificates and certificates. The Ministry of Digital Transformation has areas of work that allow it to get rid of documents that have long been unnecessary. The goal is to avoid duplication of documents and not to waste extra resources on unnecessary processes.
This does not look like a big deal to ordinary citizens, but it is a big and necessary job.
Adapting to war challenges
The war has changed the vector of the Ministry of Digital Transformation. Ukraine's experience in digitalizing the public sector in crisis situations is unique and important for the whole world, the Ministry of Digital Transformation noted. Despite all the challenges of a full-scale war, Ukraine continues to build a convenient digital state, implement revolutionary reforms and digitalize every sphere of Ukrainian life.
During the full-scale war, a large number of services oriented to the realities appeared, including:
1. Provision of assistance under the ePidtrymka program for persons who have lost part of their wages (income) due to the temporary suspension of work or economic activity as a result of hostilities during martial law in Ukraine (currently the service has been discontinued).
2. Restoration of lost documents.
3. Grants to support veterans and their families, businesses that suffered during the war, etc. (with the possibility to apply online).
4. Assistance to internally displaced persons (IDP).
5. Compensation for damaged or destroyed property, etc.
In addition, registers for compensation for losses are being created, which will be used in the future for compensation from the aggressor, says Oleksandr Iefremov. Another priority is the digitalization of the Ministry of Defense, says Maria Shevchuk.
Currently, most digital services are focused on the needs of citizens affected by the war. The Ministry of Digital Transformation has re-profiled itself and changed its priorities to provide the services that are critical for people in difficulty, emphasizes Oleksandr Iefremov.
Conclusions
The success of digitalization in Ukraine is largely due not only to technological solutions, but also to the existence of an effective regulatory framework. The establishment of the Ministry of Digital Transformation as a separate executive body has allowed it not only to develop digitalization policy but also to directly influence lawmaking. Political support at the government and presidential levels, as well as a clear vision and a strong team led by Mykhailo Fedorov, allowed Ukraine to quickly achieve the results that other countries took decades to achieve.
Despite the challenges of war, Ukraine continues to implement new digital solutions to support citizens and rebuild the country.