This is a presentation to those who are interested in investing in Africa. It was prepared for a presentation on ICT in Africa.

1. Presenters:
Prince Ellis & Waithera Murache
 

2.  Africa is rich in opportunities and potential.
 It is home to seven out of ten of the world’s fastest growing
economies.
 A bigger middle class
 With 70% of its population under 35, Africa will enjoy an
extraordinary demographic dividend as their energy and
talents drive economic growth and development.
 Expected to be the next Silicon Valley

3.  The foreign direct investment (FDI) has increased more than double of
total aid
 Political stability increases the growth of the countries.
 Access to technology.

13.  Africa is being promoted as the next global technology hub
and the continent is said to be on the brink of
unprecedented growth and prosperity.
 Trends: ICTs (Information Communication Technologies)
 Over half a billion mobile subscribers, choice destination for
telecom investors.
o Source: IT News Africa, 2011

14.  New roads, airports, power
plants and communication
networks projects
 NewInitiatives by African
Leaders
o Programme for infrastructure
development in Africa (PIDA)

15.  High ROI
 A typical example is
Bharti Airtel, a company
that is currently
investing over $1 billion
in its mobile operations
in Africa.
o Bharti declared a profit of
US $13 billion in Africa
for 2010/11 financial
year.

16.  Mobile money is Africa’s fastest growing VAS service.
 Expected to spread to the rest of Africa within the next five
years

17.  Massive boom in mobile phone access with more than 500
million active mobile phones across the continent
o investment opportunity for mobile operators, content providers,
smart card companies and mobile phone manufacturers

18.  Increase in e-Government platforms including web, and
mobile devices.
 Helping to build countrywide digital cities
 Provide citizens with access to Government data online

19.  Significant progress in
broadband
 Fiber optic cables
inland projects
o The projects continue to
drive down the cost and
increase accessibility of
broadband in Africa, thereby
reducing the cost of doing
business on the continent.

20.  The use of mobile technology in African
commercial farming is gaining momentum
o used by farmers in various African countries to
determine daily farm prices in local markets, , process
orders and to issue warnings of an imminent drought
or severe rain..
o e-Agriculture has fast revolutionized communication
between subsistence and commercial farmers
 extensive research and investment in Africa’s e-
Agriculture sector
o Africa will host the 3rd annual IAALD Africa Chapter
conference that will focus on how e-Agriculture can
improve livelihoods and food security across the
continent.

21.  African continent is endowed with energy
resources but most of it remains untapped
 A number of energy projects are currently
underway in Africa
 In 2010, the World Bank approved 11
energy projects across the continent.
 The key growth sectors will be wind power,
solar power, geothermal power, FDI into
energy and power infrastructure.

22.  African Scientists and health professionals are
using the latest technology to diagnose some of
the continent’s most deadly diseases.
o eg. Cellscope
• (a microscope attachment for cellular phones)
 There’s a demand for collaborative technologies
that provide rural doctors with access to
internationals experts during medical procedures
in real time.

23.  Political Instability
 Poor infrastructure
 Institutional bureaucracy
o can certainly make for a challenging business environment
 Corruption & Bribery
 Skilled labor
 Understanding local consumers
 Regulatory requirements
 Accessing capital

24.  Area: 583,000 sq. km
 GDP : USD 35 Billion
 Population : 40 million
 GDP per Capita: USD 800 (USD 1700 in Purchasing
 Power Parity terms)
 GDP % Growth(2011): 4.4%, 5.2% (Projected 2012)
 Debt/GDP: 48%, “B+ with stable outlook” (Fitch Rating)
 Gateway to: East Africa Community – 150 million people,
among the fasted growing regions in the world.
 Ethiopia, South Sudan, DRC – 150 million people

25. Economic Prospects into the Medium Term and Beyond
 Projected growth of 5.2% for 2012 (rising gradually to 6%
over the medium-term)
 Expect growth to be bolstered by continued expansion in:
 Agriculture (with normal weather),
 Tourism (with improved security and marketing),
 Construction (with continued public infrastructure spending),
 Transport and communication (with expansion of ports), and
 ICT (with increased investment in technology)

26. ICT In Kenya
 ICT has been the main driver of Kenya’s economic growth
over the last decade.
 Since 2000, the sector has outperformed all other
segments of the econo-my, growing on average by 20
percent annually and propelling the combined transport
and communications sector into the economy’s second
largest.
 In 1999 less than 1 in 1000 Kenyan adults had mobile
phone service. By mid-2010, there were 21 million active
mobile phone numbers, equivalent to one per adult.

27. Mobile Penetration in Kenya

28. Internet Penetration Kenya

29. Government ICT Initiative
 The government of Kenya has embarked on a connectivity
and e-services delivery project. supported by the World
Bank under the Transparency Communication
Infrastructure Project (TCIP).The goal of the project is to
 Boost ICT connectivity in the country.
 Improve Government of Kenya’s delivery of services to
citizens.
 Increase type and quality of information from and to
citizens.
 Increase Government of Kenya’s ability to ensure
transparency and support anti-corruption efforts.

30. Government ICT Initiative
 To succeed the project will focus on four key components
which are
 Enabling Environment for TCIP by providing technical
assistance to the key ICT national bodies such as Ministry
of Information and Communications
 Support connectivity in Kenya through several
subcomponents such as Support for purchase of capacity
in the regional and national networks for targeted user
groups

31. Government ICT Initiative
 E-Government applications which apply the judicious use of
ICT to enable governments to improve their internal
systems, deliver services more efficiently and effectively,
and make information more accessible to the citizenry.
 Project Management which will consist of support to
finance project management related issues.
http://www.ict.go.ke
http://www.cck.go.ke

32.  ICT in the education sector can broadly be categories in: E-
Government which aims at mainstreaming ICT in all
government operations and service delivery.
 Government recognizes that an ICT literate workforce is the
foundation on which the nation will become a knowledge-
based economy.
 Hence education is a platform for equipping the nation with
ICT skills in order to create dynamic and sustainable
economic growth.

33.  Kenya is committed integrate ICT in the education
curriculum and has set up implementing agencies such as
Network Initiative of Computers in Education (NICE) and
Kenya ICT Trust Fund.
 Whose core mandate is to Facilitate Public Private
Partnerships (PPP) in mobilizing and providing Information
and Communication Technology (ICT) Resources to Kenyan
public schools.

34.  ICT facilities available and accessible for teachers
http://cit.mak.ac.ug/iccir

35.  Kenya ICT Trust Fund does this by ;
 Enhancing Teacher Professional Development through
capacity building programs.
 Facilitating the development or adoption of Technology in
Education curriculum.
 This is supported by the Ministry of education whose
principal objective is to integrate ICT in the delivery of
education and training curricula.
http://www.kenyaictfund.or.ke/

36.  CFSK has been in existence for nine years and has
sourced over 50,000 personal computers that have been
deployed in over 3,000 Public Secondary and Primary
Schools, Technical Training Institutes, teacher training
colleges, medical training centers and several universities.
 In a number of these institutions, CFSK has also placed
electricity generators, Internet access and the WorldSpace
Direct Media Service.
http://www.cfsk.org/

37.  According to Kenya Education Network (KENET) there are
over 30 higher education institutions with vibrant ICT
programs.
 Kenya Education Network (KENET) is a National Research
and Education Network that promotes the use of ICT in
Teaching, Learning and Research in Higher Education
Institutions in Kenya.
http://kenet.or.ke/

38. Primary school Computer Class

39. High School Computer Class

40. Tertiary Education IT Lecture

41. Tertiary Education Session

42.  Use of the fiber optic cable significantly reduces the cost of
connectivity to broadband while increasing the connectivity
speeds.
 There are over 3000 miles of terrestrial cable all around
Kenya. Kenya data networks (KND)has deployed the largest
fiber optic network in the region so far.
 With over 300 miles of Metropolitan fiber optic cable in
Nairobi, 30 in Kisumu and Mombasa and 15 in Nakuru,
Eldoret and Thika, KND has the key towns in Kenya covered.
http://www.kdn.co.ke/

43. Courtesy:
Kenya Data Networks

44.  The Kenyan government
completed a fibre optic to
the most rural areas of
the country in 2008
 The investment cost USD
40 million and spanned
3,800 kilometres
Courtesy:
Communications Commission of Kenya (CCK)

45.  Kenya’s Competitive advantage as an ICT investment
destination is supported by various investor friendly factors
that include:
1. Regulatory framework
Communications Commission of Kenya (CCK) - the
regulatory body provides an investor with a one-
stop shop for registration, licensing and facilitation
2. Availability of a well-trained labor force
Kenya has a well-educated English speaking labor force
with skilled personnel trained in ICT and related fields.

46. 3. Kenya's relation with the global information infrastructure
Kenya is an active member of the International
Telecommunications Union (ITU), and other international
conventions and standards
4. Diversified experience
Kenyans are involved in diverse areas of ICT and the
extensiveness of industry players demonstrates this

47. 5. Access to the region market
Kenya’s membership in regional trading bodies such as COMESA,
AU , EAC and provides potential investors with a large potential
market
EAC
COMESA AU

48. 6. Investor friendly arrangements
The Kenyan government can guarantee investor friendly
arrangements including:-
o Double taxation, bilateral investment trade agreements
o Liberalization policy allowing for sector participation in
the ICT sector
o Reduced taxes on computer hardware software
o Removal of licensing requirements on information and
broadcasting services

49. 7. Investment Insurance
This provides potential investors with insurance for their
investment in Kenya against a wide range of non-
commercial risks.
8. Strategic location
Located on the East African coast and having the port of
Mombasa, Kenya is strategically located for investors
wanting to access the East and Central African market.

50. http://www.information.go.ke

51.  Kenya Constitution protects against expropriation of private
property
 Free Movement of Capital : no exchange controls exist in
Kenya: investors can freely repatriate capital, profits and
interest.
 Member of the Multi-lateral Investment Guarantee Agency
(MIGA), an affiliate of the World Bank insures foreign
investments against non-commercial risks

52.  Member of the International Centre for Settlement of
Investment Disputes (ICSID) which arbitrates cases
between foreign investors and host governments.
 Member of the Africa Trade Insurance Agency (ATIA) which
insures investors against political risks.
www.investmentkenya.com
www.information.go.ke

54.  M- Pesa is a mobile-phone based money transfer service for
Safaricom, Kenya’s largest mobile network operator.
 M- Pesa facilitates money movement with a mobile device
 M-PESA is driven by a secure application on Safaricom SIM
cards. Registered customers have a menu on their phone
giving them the ability to move money to other phone based
accounts
http://www.safaricom.co.ke/business

55. Total deposits have been growing steadily over the period, a clear indication that the
demand for the mobile money transfer service has continued to expand.
http://www.cck.go.ke

57.  M-PESA revenues grew by 43 per cent to Ksh. 16.9 Billion -
78 per cent of Safaricom's total customer base - for the
financial year ended 31st March 2012.
 There are now over 15 million registered M-PESA users in
Kenya.
 Safaricom added 12,000 M-PESA agents in 2011/2012
financial year- there are now close to 40,000 agent outlets
nationwide.
 M-PESA now employs over 50,000 people directly in Kenya.
http://www.thinkm-pesa.com

59.  Konza city is set to be one of the most successful cities in
Africa, competing economically and culturally with the best
cities in the world.
 Located 37 miles from Nairobi,

60. The master plan for the 2,000 hectare city is based on
successful new town projects around the world put together by
an international team of experts, drawing on best practice from
places such as the UK, China and Brazil.
The city plan is after the mythical Atlantis

61.  Konza City will be a techno city with :
 BPO Techno Park
 Central Business District
 Science Park
 University Campus

62.  Konza city BPO Techno park destination in areas such as:
• Software Development
• Financial Transcription
• Medical Transcription
• Animation
 Kenya’s time zone sits between Europe and Asia and can
therefore provide real time service to both.
 Perfect destination for companies looking for high quality
outsourcing.

63.  Konza City Central Business district (CBD) will offer land
mark shopping mall.
 The CBD will have office blocks
 Hotels for international business travel and tourists.
 Stadium and public entertainment venue
 Concert halls and sports facilities

64.  Konza is anticipated to attract the best skilled, most
educated across Africa and the world.
 Government intends to provide a one stop shop within Konza
city.
 New kind of city for a new Africa.
 Konza city is where the silicon savannah beings.

65. GDP: US$6 bn (2011 est)
Real GDP Growth: 8.8% (2011 est)
Inflation: 8.3% (2011)
Major Exports: Coffee, tea, cassiterite (tin), coltan, wolfram,
hides and skins, pyrethrum
Major Trading Partners: Exports - Kenya, Democratic
Republic of Congo, China, Swaziland, US, Pakistan
(2010)Imports - Kenya, Uganda, UAE, Tanzania, China
(2010)
Exchange Rate: Rwanda Franc 607.2 = $1 (2011 est.).

66.  Rwanda Development vision is to transform Rwanda into a
knowledge-based economy .

67.  To design, implement and advocate for policies that create
and promote investment, competitiveness and growth of the
ICT sector
 To identify and develop business opportunities for the
private sector
 To promote project and product development that foster
private sector involvement and empowerment
 To provide strategic support to grow the ICT sector
 To collaborate with RDB/HCID and other institutions
develop and increase Rwanda’s ICT skills base

68. Steps taken by Rwanda to ensure progress and investor
confidence in ICT:
 Policies that have resulted in the top 3 most reliable
internet connections in Africa
 Simple taxation and fast foreign company registration
 Massively reformed with zero tolerance for corruption
(WEF Global competitiveness report).

69.  Rwanda is developing an innovation rich environment and
this sector is strongly supported by the Government, several
ICT schools, and development of an ICT park to support
growth in this sector.
 Rwanda is among few African countries that have initiated
the One Laptop Per Child (OLPC)project aimed at deploying
120,000 laptops across the country. OLPC has also set up
a major learning center in Rwanda, the Center for Laptops
and Learning, which aims to serve the educational and
learning needs of countries across Africa.

70. Government Investment of 24 million dollars worth of
fibre optic cable
 Connected to the Information Superhighway through
neighbouring Uganda and Tanzania
 The networking is redundant thus no internet interruptions
to this land locked
country

72. Computerization of education all the way from elementary level
Rwanda is right on course for its vision 2020 to become a
prosperous, knowledge based economy.

73. http://techrwanda.com/

74.  The Rural and Community Access (RCA) unit has gone a
step further to bridge the ICT gap existing between the rural
poor and the urban dwellers by implementing the ICT
knowledge-based projects.