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Ict maghreb workshop

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  • 1. ICT MAGHREBWorkshop 27.10.2011Steve CollingMarjaana KarjalainenAnneli Virtanen
  • 2. Ohjelma09.00 Seminaarin avaus ja Maghreb- Marjaana Karjalainen, Finpro Italy maiden ICT-alan markkina- Anneli Virtanen, Finpro Tunisia analyysin päähavainnot Steve Colling, Finpro France09.30 Maghreb – Mahdollisuus ja Kim Fagernäs, Vice President EMEA erilaisuus and APAC, Stonesoft Oyj09.50 Liikekumppanuustukea Siv Alhberg, Programme Director, kehittyville markkinoille Finnpartnership10.05 Miten tästä eteenpäin Marjaana Karjalainen, Finpro Italy10.30 Tilaisuus päättyy Mahdollisuus keskusteluun Finpron asiantuntijoiden kanssa27/10/2011 © Finpro 2
  • 3. Maghreb (Algeria, Libya, Mauritania, Morocco, Tunisia) • All states are members of the Arab Maghreb Union (l’Union de Maghreb Arabe, UMA). UMA promotes regional integration with emphasis on economic and political co-operation. • IMF (International Monetary Fund) divides the region into three groups: - Major oil producers - Algeria and Libya - Emerging markets - Morocco and Tunisia - Poorest country - Mauritania (oil production started in 2006) • The population of Algeria, Tunisia and Morocco is around 77 million and the proportion of Muslims is almost 100 %.12.10.2011 © Finpro 3
  • 4. Tunisia
  • 5. Tunisia – Arab Spring27/10/2011 © Finpro 5
  • 6. Tunisia – Arab Spring27/10/2011 © Finpro 6
  • 7. Tunisia in brief Population 10.5 million Area 163 610 km2 Capital Tunis • Languages Arabic, French Currency Tunisian dinar (TND) (1€ = 1.94 approx.) GDP 2010 33.4 billion € (per capita € 3180) Minim. wage 121 € / month (40 h work week) Government Presidential Republic27/10/2011 © Finpro 7
  • 8. Doing business in Tunisia • Exporting to Tunisia – On the basis of the Association Agreement Tunisia is looking for preferential status within the EU, i.e. “partenariat privilégié”. – The most used method of payment in Tunisia is letter of credit - international transfer and documentary remittance are also possible. • Investing in Tunisia – Good investment and business environment (69 th out of 183 countries in WB’s Doing Business 2010) and fairly good banking system. – Offshore advantages in taxation e.g. full tax exemption on exports-derived profits for the first 10 years and taxation at a low rate of 10% after this period of ten years for the life of the company. – Tunisia continues to attract Foreign Direct Investment (FDI). Partnership plays a major role as nearly half of foreign companies have mixed capital; they are associated with Tunisians in joint venture. • Corruption – In 2010 Tunisia was ranked 59th out of 178 countries in the Corruption Perception Index, ahead Greece, Italy and Romania, as well as most Arab and African countries. • Travel & safety issues – No visa needed for Finns staying less than 3 months – Safe country for foreign people, yet cultural issues must be considered27/10/2011 © Finpro 8
  • 9. Tunisia - Future development • Democratic development –Tunisia as predecessor • The importance of social media rises (Facebook, YouTube, blogs) • Strengthening of EU relations –Tunisia’s “statut avancé” • Offshore – Tunisia provides special benefits for the companies and a natural connection to other Maghreb countries and West Africa • Influence of China is growing in the region – challenges but also cooperation possibilities in various sectors • Development of mobile solutions (3G) • Importance of Arab financiers and international/regional development financial institutions • Improvement of security systems • Urbanisation on the coast line - “Medinas 2030” initiative (EIB, Center for Mediterranean Integration) • Reconstruction of Libya – Tunisia’s good relationship27/10/2011 © Finpro 9
  • 10. ICT, R&D, Innovations27/10/2011 © Finpro 10
  • 11. Tunisia’s ICT market • Ministry of Communication and Technologies (Ministry of Industry and Technology at present) is responsible for ICT sector development in Tunisia – 1st country in Africa having an ICT-based national strategy – Government is promoting the use of technology in administration and education: e-government, e-learning – Tunisia will be a member of Board of Directors of the International Telecommunications Union (ITU) 2011-2014 • Tunisia has positioned itself as a regional high-tech centre of the Maghreb-countries  emphasis on software technologies and services – Global Information Technology report 2010-2011: Tunisia is the 35th out of 138 countries, 1st in Africa and in Maghreb (and gained 4 places from the previous year) – During recent years ICT sector has experienced strong growth. Sector accounted for 11.4 % of GDP in 2009 and attracted EUR 2.1 billion for 2007-2011Sources: Tunisiaonlinenews.com 13.10.2010 , OBG:the report - Tunisia 27/10/2011 © Finpro 11
  • 12. Telecom market • Fierce competition – Three operators, Tunisiana, Tunisie Télécom (TT) and Orange, competing in a market with the mobile subscription penetration rate at 106 % (2010) – TT losing customers to Orange the current trend, Tunisiana holding its position – Market dominated by pre-paid subscriptions – Big changes and demand for applications ahead with the extension of the 3G offering in 2011, Orange already holder of 3G licence. TT has recently got a 3G licence and started offering 3G services in July 2011. Tunisiana expects to have its 3G licence in November 2011. • Orange to challenge TT in the fixed-line and broadband market – TT’s fixed-line monopoly over since the entry of Orange – TT has however control of substantial tranches of Tunisia’s telecoms infrastructure – TT around 470.000 ADSL subscriptions against Orange’s around 36.000 3G subscriptions (9/2010) • Both TT and Orange offer WiMAX and VSAT services • Tunisia has participated in pan-African RASCOM initiative intergovernmental commercial satellite enterpriseSources: OBG, The Report, Tunisia 2010, Tekiano27/10/2011 © Finpro 12
  • 13. Tunisia as a market Strengths Weaknesses • Good business environment • High education level and good ICT • ICT sector dominated by public skills tendering processes which are difficult • Developed and functioning for foreign companies infrastructure • Political dimension of the business is • Well developed outsourcing and still high offshore activities • Limited market in size • Gateway to other African countries Opportunities Threats • Operators looking for concrete solutions to leverage their 3G investments • Developing a sustainable business (platforms, services) takes time • First democratic elections at hand • Competition is getting fiercer12.10.2011 © Finpro 13
  • 14. Morocco
  • 15. Kingdom of Morocco Population 31,5 million (50% less than 25) Area 710 850 km2 (excl. W. Sahara) Capital Rabat (largest city Casablanca) Languages Arabic (French, Berber) Currency Moroccan Dirham (1€ ≈ 11MAD) GDP €65 446 million (per capita €2 076) Minimum salary 0,90 € per hour Government Constitutional monarchy12.10.2011 © Finpro 15
  • 16. Doing business in Morocco • Exporting to Morocco • Tariffs are applied on many imported products • Investing in Morocco • Morocco is highly accommodative to foreign investors • Creation in 2009 of the Moroccan Investment Development Agency (AMDI), under the Ministry of Industry, Trade and New Technologies • Designed to inform and assist foreign investors throughout the different phases of their project • Corruption • In 2009 Morocco ranked 89th out of 180 in the Corruption Perception Index scoring 3,3*, below the world’s average (4) and median (3,35) • Morocco has set up a commission and voted several laws to fight corruption • Travel & safety issues • No visa required to enter the country • No particular risk12.10.2011 © Finpro 16
  • 17. ICT sector in the economy • Current general situation • The ICT sector currently employs 32 000 people in Morocco • ICT generates 3 700 M€ • IT offshoring has grown 270% faster than anticipated • In 2009 the government has launched the Maroc Numeric Plan in order to: – Develop the domestic demand by boosting the use of IT in households, companies and schools – Create 26 000 additional jobs, and gain productivity in all sectors – Multiply by 7 the revenues generated by the IT offshoring sector • Morocco to focus on the following sectors and around which specific techno centers are being built: – Multimedia, software development, BPO, mobile applications, on-board electronic equipment • Moroccan ICT sector is expected to grow 10% annually for the coming years12.10.2011 © Finpro 17
  • 18. Telecom market • Mobile penetration rate reached 108% in June 2011 – 96% of lines are pre-paid • 35% of Moroccans are internet users – Most of users connect from internet cafés • 70% of private internet connection through 3G networks • 3 operators – Maroc Telecom (55% market share in mobile, 36% in 3G) – Meditel (35% and 21%) – Inwi (10% and 43%)12.10.2011 © Finpro 18
  • 19. Business parks • 4 business parks host nearshoring activities • Rabat Technopolis is operational but isn’t completed yet • 5th business park is being built in Fez • Another project planned in Marrakech • All business parks are developed and managed by state-controlled organizations • Caisse de Dépôt et de Gestion, through its subsidiary MEDZ is the most important, financing all projects except in Tangier • Tanger Free Zone is managed by TMSA, the state organization in charge of the entire Tangier harbor area project • Casanearshore is the only park focused exclusively on nearshoring activities (ITO and BPO) • Tanger’s focus is nearshoring to Spain • Technopolis’ focus is R&D12.10.2011 © Finpro 19
  • 20. Morocco as a market Strengths Weaknesses • Stable and open country with pro- • Morocco is still a developing country business authorities with a large share of poor, rural and • Skilled, experienced and English- illiterate population speaking personnel • Difficult access to large public projects: • Thriving private sector with a sizable relations and local partners are number of SME and large corporations necessary as potential clients Opportunities Threats • State-sponsored projects and nearshoring activities create new and more complex needs • Increasing competition from local and • All solutions related to data transfers foreign companies will keep on growing • A gateway to French-speaking African countries12.10.2011 © Finpro 20
  • 21. Algeria
  • 22. Algeria (Peoples Democratic Republic of) Population 35,7 million (47% less than 25) Area 2 381 741 km2 (2nd largest in Africa) Capital Algiers (largest city in Maghreb) Languages Arabic (French, Berber) Currency Algerian dinar (DZD) (1€ ≈ 100 DZD) GDP €80 368 million (per capita €2520) Min wage 15 000 DZD / month Government Presidential Republic12.10.2011 © Finpro 22
  • 23. Doing business in Algeria • Exporting to Algeria • Tariffs and quotas for most of the products • Since 2009 documentary credit is the only method of payment possible • Investing in Algeria • Foreign Direct Investment (FDI) projects must be presented to the Agence National pour le Développement de l’Investissement (ANDI) • In 2009 only 4 FDI projects were presented to ANDI (102 in 2008) • Since 2009, at least 51% of a joint venture’s capital must be owned by Algerian partners. For micro structure the local partner(s) share must be 30%. • Corruption – In 2009 Algeria ranked 111th out of 180 in the Corruption Perception Index, scoring 2,8*, below the world’s average (4) and median (3,35) • Travel & safety issues – A visa is required to enter the country – Recommended to stay in secured hotels in Algiers and to travel only by plane between the main cities12.10.2011 © Finpro 23
  • 24. ICT usage evolutions Internet users as a % of population 100 80 60 Algeria 40 Finland 20 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Mobile phone penetration rates in Fixed telephone lines as a % of % population 200 60 50 150 40 100 30 20 50 10 0 012.10.2011 © Finpro 24
  • 25. ICT in organizations • 41,4% of companies use the Internet for business • 58,2% of these have an e-mail address • 29,4% have a website • 15,2% have a domain • Due to many disruptions in the Internet network, many companies are turning towards alternative technologies such as WiMAX • The e-Algeria project supports the integration of ICT in companies and publics administration • According to local IT firms, the project is too vague, lacks leadership and resources to implement concrete actions12.10.2011 © Finpro 25
  • 26. Telecom operators Algérie Télécom / Djezzy (Orascom Nedjma Mobilis Telecom Algérie ) Activities Fixed, mobile (2G), Mobile (2G) Mobile (2G) satellite, broadband Market share 100% (fixed) 41,8% (mobile) 23,4% (mobile) 34,8% (mobile) Number of 12,29 million 14,79 million 8,28 million mobile clients Net revenue Doesn’t disclose financial € 353 million € 377 million information Revenue per Doesn’t disclose financial 7€ 3,96 € mobile user information (monthly, Q110) Ownership Algerian State (100%) The Egyptian Orascom The Kuwaiti Wataniya Telecom Holding (97%) and Telecom (71%) and the the Algerian Cevital SPA Kuwaiti Gulf Investment (3%). The Algerian Corporation and United government may take Gulf Bank (29%) control of the company.12.10.2011 © Finpro 26
  • 27. Algeria as a market Strengths Weaknesses • Red tape and heavy restrictions on • Large untapped market with little imports & FDI competition • Telecom and media sectors dominated • Local private ICT companies are by state-owned companies mainly SME accessible and responsive • Underdeveloped infrastructure (networks) Opportunities Threats • Arrival of 3G should create new demands that local resources cannot • Increasing state control over telecom meet sector may affect competition and delay investments • Expertise and investments needed to initiate cloud computing12.10.2011 © Finpro 27
  • 28. Project financing
  • 29. Project finance in ICT sector• Development Financiers – European Union / European Investment Bank – African Development Bank – World Bank• ICT sector funding is focused on institutional support, capacity building and development of telecommunication networks and systems• Funding focused on regional projects, principally in Sub-Saharan Africa• Other Financiers – Finnfund / Finnpartnership – Finnvera – Finnish Concessional Credits (Tunisia and Morocco eligible) – Nordic Investment Bank – Commercial Banks
  • 30. Business opportunities andhow to take advantage of them
  • 31. Business opportunities Operators Enterprise software• Recent and planned roll-outs of 3G networks open up opportunities • Vertical enterprise software markets• Content and applications should have in a huge growth: a local flavour (sports, social media, • Health chat, music) • Education• Applications for logistics, tourism, • E-government agriculture and education and health • Logistics• Content management systems, middleware Financial sector Outsourcing / offshore activities• Lot of opportunities as banks are • Technical know-how at a good level renewing their systems often done in- in Tunisia and in Morocco house • Still lacking high level project• Risk management software management skills• Card management systems• A high number of people without a bank account => how to serve them © Finpro 31
  • 32. What next? Fact finding trip Test Drive• Fact-finding trip in Tunisia and Morocco in March 2012 • Get direct feedback for your offering• Seminar, B2B-meetings, networking • Understand the concrete market• You can either participate in one or potential two countries • Start discussing with potential clients Partner search Finpro at your service• Local partner is a “must” for a • Office in Tunis covering Maghreb successful business • Finpro Tunisia supported by Finpro• Find right partners Trade Centres in Southern Europe• Have smooth start for your business © Finpro 32
  • 33. Contact information • Anneli Virtanen Finpro Tunisie Section Commerciale Ambassade de Finlande Immeuble Samarcande 2ème étage Rue du Lac Majeur 1053 Les Berges du Lac Tunis, Tunisie +216 71 963 033 +216 98 358 39227/10/2011 © Finpro 33