eTransform Africa: Local ICT


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eTransform Africa: Local ICT

  1. 1. Local ICT sector review Discussion document for 28-Transformation-Ready: The Strategic Application of 30 June 2011Information and Communication Technologies in working sessionsAfrica (eTransform Africa)
  2. 2. Project scope and objectives Objectives • Identify the role that ICT can play in transforming the economy • Review examples of successful ICT applications by region • Highlight scalable regional applications for in-depth case studies • Identify constraints to ICT applications and companies • Identify enablers to ICT applications and companies • Provide options on the roles that the World Bank and African Development Bank can play in encouraging ICT development to impact individual companies page 1
  3. 3. Geographic focus Focus countries Focus companies Morocco Gibraltar Casablanca Technopark Tunisia Morocco Algeria Egypt West Sahara Libya Mauritania Eritrea Niger Mali Senegal Chad Burkina Faso Gambia Sudan Djibouti Guinea-Bissau Nigeria Sierra Leone Guinea Côte d Ivoire Ghana Nigeria Central African Republic Ethiopia Somalia Paga Liberia Togo Cameroon Benin Equatorial Guinea Uganda Kenya Gabon Democratic Republic of Congo Sao Tome and Principe Rep. Congo Rwanda Tanzania Burundi Seychelles Angola Comoros Zambia Mayotte Zimbabwe Malawi Kenya Namibia Botswana Mozambique Mada- gascar Virtual City Swaziland South Africa Lesotho page 2
  4. 4. Methodology - leveraging Hierarchy of ICT needs Framework Structured ratings process ICT hub BPO Content export Content development ICT enabled private sector Data and insights Accessibility • Interviews with ~75 organizations in three target countries Environment • Desk based research ICT infrastructure • Deep dive case studiesIllustrative hierarchy for discussion page 3
  5. 5. Example classification: ICT hierarchy classification (ICTenabled private sector, 4/8) 1 2 3 4 5 Banked Banked Banked Banked Banked population less population is population is population is population is than 30% 30% to 50% of 50% to 70% of 70% to 80% of greater than (mainstream total population total population total population 80% of total Reach of banks and (mainstream (mainstream (mainstream population banking alternative banks and banks and banks and (mainstream channels) alternative alternative alternative banks and channels) channels) channels) alternative channels) ICTenabled Most Most Transactions, Transactions, Transactions,private transactions, transactions inventory, inventory, inventory, sector inventory, inventory, accounting, accounting, accounting, accounting, accounting, logistics, and logistics, and logistics, and logistics, and logistics, and payroll payroll payroll Use of payroll payroll completed using completed using completed using tech by completed completed spreadsheets POS and ERP POS and ERP SMEs manually manually with with some use of systems that are systems that are some use of database and not fully fully integrated spreadsheets ERP/ POS integrated and POS functionality systems page 4
  6. 6. Hierarchy of ICT Needs: Kenya Hierarchy of ICT Needs: Kenya Illustrative quote: “Game changing innovations and wealth comes from solving problems…Africa has a lot of problems” – Kenyan ICT expert page 5
  7. 7. Kenya roadblocks and pathways Roadblocks Pathways Examples of success as a motivator: Raise profile of tech Small pool of qualified young tech graduates: Limits successes in Kenya, continue to attract high value competitions pool of talent to enable scale in existing companies, to make income generation potential of tech tangible 1 reduces likelihood of breakout tech entrepreneurial ventures Additional rigor of university level ICT programs: International standards applied to University technology curricula Lower cost of failure through fellowships and business development programs: De-couple business and personal High cost to entrepreneurship: Reduces tendency of success talent to move into young innovative ventures 2 Implement guarantees for small business AR: Reduction of cash conversion cycle, starting with most reliable payers serves to improve small business cash management and prospects Low perception of quality and trust in Kenyan Conduct joint initiatives with local companies and businesses: Kenyan businesses must be “that much encourage partnerships with international bodies: Boost 3 credibility through partnerships better” to succeed, limits tendency to execute large, outside of network, initiatives Implement counterparty verification: Objective assessment of risk of doing business with reviewed counterparties Limited exposure to foreign innovations and markets: Few beyond Diaspora benefiting from Increase pathways to foreign exposure: Support efforts to 4 innovations developed elsewhere and bringing introduce foreign experts to Kenya and vice versa international perspective Collaboration with governments to dialog on labor policy: Unclear government policy and protectionist Initiate conversation between business leaders and government tendencies: Strict labor policies reducing ability to do 5 on specific areas for labor policy improvement business internationally and benefit from scale Central policy clearinghouse and interpretation: Develop hub for dissemination of easily understood policy information page 6
  8. 8. Insights from firms on challenges to growth - Kenya Observations • Key to success was to learn from the best and adapt this to the Kenyan marketVirtual City Mobility solutions provider • Built international credibility by winning international prizes (Nokia and Legatum) focused on supply chain • Cost of data storage and cloud hosting in Kenya raised barriers to startup automation and agriculture • High risk to fraud/theft for Kenyan enterprises that use manual book accounting management. Winner of USD 1M Nokia Growth • Exposure: Partner with global leaders to develop best practices and credibility Insights Economy Venture • Infrastructure: Power and data center shortage raises cost of operation Challenge award. • Transparency: Automation and systems critical to limit corruption and increase international credibility of Kenyan companies Observations • Zuku retail offering catering to more affluent reliability sensitive marketWananchi Provider of internet services • Wananchi experiences a high incidence of wire clipping and other acts of and pay TV through Zuku sabotage/theft of infrastructure that raises their costs (and is passed on to customer) and SimbaNet to Kenya, • Management hired from outside of Kenya, local hires are typically installers/ sales expanding across East • Wananchi funded by Africa, North America, and Europe based investors Africa. Funded by East Africa • Infrastructure: Urban affluent internet provision in Kenya is a maturing market Insights Capital Partners, ECP, • Security: Cooperation among rivals and hardware security needed to lower costs Oppenheimer, Sarona, and • Staffing: Limited skilled tech managers in Kenyan market, education needed Liberty Global • Funding: Kenya is becoming an attractive entry point for international investors Observations • Overcame global view of poor quality in Africa by being noticeably better than compsKenCall • Entrepreneurs face high cost and risk due to limited ability to rebound in small market Call center and general BPO and cash pressures on customer and supplier sides (high AR days) provider serving Africa based • Challenge to serve east African clients (Uganda and Rwanda) due to stringent in- and International clients. country labor requirements, not able to recognize scale benefits to specialization Recently launched M-Kilimo agriculture advisory services. • Exposure: Limited international visibility and scale in African successes raises the Insights Kenya’s first international call hurdle of success for African business center. • High operational costs: Cycle of delayed payments a constraint to young businesses • Policy: Protectionism within regional group constraining cross-border business page 7
  9. 9. Insights from firms on challenges to growth - Kenya Observations • Founders able to scale globally because each came from a different geography andUshahidi Open source data industry so they brought a diversity of “spheres” to the business aggregation and • High incidence of family and relationship based initiatives due partially to trust issues visualization platform. • Most users and information suppliers are young Founded by Kenyan programmers. Serves • Exposure: Scale initiatives most likely from leaders with international exposure Insights users in every inhabited • Education/Security: Counterparty verification and objective certifications needed to continent enable more transactional and ICT enabled partnerships • Education: Younger population driving adoption, role for education to advance use Observations • Most purchase decisions for ERP software driven by regulatory mandate/compliance,Rivotek Strategy and IT managers in company, and western educated managers implementation consulting • Decision to purchase an ERP system more common for scale companies for business information • Some small Kenyan companies resistant to transparency that comes with ICT systems. Founded by Kenyan in partnership with • Exposure: Managers exposed to global businesses more likely to integrate ICT Insights US based company (ENI • Policy: Compliance need has high potential to drive a sea change in ICT adoption Systems.) • Transparency: ERP system integration enables enterprises to scale while lowering the risk of corruption/theft away from the hub page 8
  10. 10. Case Study: Virtual City- Overview Services Supply Chain • Distributr- Field agent sales and receipt generation app. Consolidated information used to issue stock, manage inventory, submit orders and provide feedback • Routr- Management and optimization app for distribution QuickTime™ and a • Sales Managr- App for mobile sales management (order taking, TIFF (Uncompressed) decompressor are needed to see this picture. customer information tracking, sales goal monitoring) • Mappr- Geographic information system app to track asset usage, track trends, and visualize data • Other field to HQ templates- Enginr (supply chain), Haulr (dispatch/delivery), Tracr (product history tracking), Warehousr (stock tracking), and Monitr/Project Managr (project planning)Overview: Logistics and agriculture managementapplication (app) developer at the intersection of fixed and Agriculturemobile devices • Agrimanagr- App to manage weighing, grading, and receiptingEvolution: Founded in 2000 as an online shopping of farm products. Enables supplier payment using cashlessdestination then shifted into mobile phone solution transactions and tracks/ rewards loyal customers and suppliersdevelopmentFunding: Funded by founders and international innovation Enterprise Resource Planningaward winnings (USD 1M Nokia Innovation prize and USD • Microsoft Dynamics CRM- Licensed to automate sales process50K Legatum Pioneers of Prosperity prize) • Other field to HQ templates- Auditr (survey market), PlannrUsers: Serves large multi-national corporation clients (Ex. (event management), Contactr/Membr (track/message contacts)Coca Cola), moving in to retail/shop keeper market in Q32011 by leveraging learnings from larger clients Governance/ Non Profit: • Electr- Vote tallying and elections process automation app • Grantr- Grant management and budgeting system page 9
  11. 11. Case Study: Virtual City- Contributions to scale ICT • Supply chain transparency throughout route reduces theft: More Enables enterprise transparency visibility into point and timing of theft or fraudulent activity and fraud reduction via • Visibility from supply chain to books boosts credibility: Increases automation difficulty of shadow accounting and manual adjustments to accounts • Mobile phone based accounting and stock management is Uses mobile gateway to extend accessible at a low cost and literacy threshold: Reduces waste in enterprise grade solutions to system via real time stock adjustments and price transparency small shop keepers • Learnings from MNCs leveraged in retail product: Extends best practices to through the value chain to distributors • Localization of technology via extrapolation to mobile platform: Extends learnings from exposure Rebuilds existing solutions for mobile device deployment to enable to international markets to greater utilization in East Africa provide tailored solutions • Serves as interface between Kenya/world: Exposure via competitions gives international community a view into innovative Africa • Companies with limited international exposure or IT knowledge resistant to adoption: Fear among some managers of too much transparency, adoption driven by CIOs and western managers • Regulatory compliance requirements raise cost of operation: Data storage required in-country, limits scale benefits of specialization and Challenges migration to cloud based technology • Staffing of qualified developers difficult: Growth limited by availability of skilled developers and managers • Power consistency constraining productivity: Frequent black outs reduces ability of developers to drive output and reduces customer faith in Kenya based technology page 10
  12. 12. Hierarchy of ICT Needs: Nigeria Hierarchy of ICT Needs: Nigeria Illustrative quote: “It will take at least 20 years for Nigeria to build a broad-based tech culture, but near term islands of excellence are possible” – ICT Expert page 11
  13. 13. Nigeria roadblocks and pathways Roadblocks Pathways Mobile phones as digital gateway: Increased access to smart phones, mobile enabled web pages, mobile as information portal, Low digital literacy: Constrains ICT adoption and mobile application monetization 1 innovation at consumer and commercial levels ICT education: Increased access to ICT in schools, dedicated training for students and business owners International leadership enabler: Mix of domestic and foreign managers, advisors, and directors Lack of exposure to external markets, few domestic forums: Reduces visibility into new technology and 2 Exposure as a two way street: Expert exchange and learning scale of business trips, in country forums and incubators Online tech community portal: Development and networking tools for African tech stakeholders Investment rather than aid: Low returns to early stage venture High barriers to business development: Little early in Nigeria, but necessary for growth 3 stage capital, high cost of operation, high cost of failure Operating cost parity: Support for high cost of power, connectivity, and facilities Limited access to virtual payments: High non- banked population (80%) and limited means for online 4 Mobile money adoption: Support for regulation and payment limits ability to automate for domestic needs encouragement of mobile money movement Technology as a fraud reduction tool: Business automation to Rampant fraud and mistrust: High levels of distrust enable scale and increase intra business accountability via within businesses and among partners, strong reliance transparency on relationships rather than capabilities, international 5 Certification promotion: Objective certifications of ability and perception of risk reliability among individuals and businesses to enable non relationship-based counter party verification page 12
  14. 14. Insights from firms on challenges to growth ObservationsAdlevo • Principals entered the market to invest in innovative platforms but found only a few USD 52M Growth equity truly innovative companies, and even fewer with proven technology and revenueCapital fund based in Nigeria. • Tech entrepreneurs mostly clustered in web design and portal development Founded by former Silicon • Very little technology observed in schools (even at University level) Valley based tech investor. Portfolio includes • Education: Investment in education and research engines needed to develop Insights investment in Interswitch. innovative tech platforms (affect of weakness at the base of the ICT hierarchy) • Funding: Very early stage, long term focused, investors needed • Education: Tech innovation requires ICT in schools (ex. India and Israel models) ObservationsPaga • Paga pays USD 800 per week for a generator (power redundancy), major telecoms Mobile money provider providers must place generators and security at each tower deployed in Nigeria based in Nigeria. Founded • The top developers at Paga are in very high demand and are in high demand by former tech and Private Equity professionals. Granted provisional license • Infrastructure/ Cost of operation/ Policy: Power inconsistency and security Insights by the Central Bank of requirements for business in Nigeria suffocating business growth and development Nigeria to launch services • Education: In Nigeria a premium is placed on the developers that were able to get in two states. enterprise grade education, this typically came from international exposure page 13
  15. 15. Insights from firms on challenges to growth Observations • There is very little tertiary cable installed in rural areas, mobile phones largely usedMobitel Broadband service for internet connectivity outside of major urban centers provider based in Nigeria. • Six government ministries were successfully linked via an automated system, this Led by Nigerian born resulted in the exposure of payroll fraud and resulted in cost savings for the country telecoms professionals. Awarded national license • Infrastructure: The gap between rural and urban infrastructure limits potential for Insights for 2.3 GHz frequency in traditional ICT in rural areas, but there is opportunity in building mobile capabilities 2010 • Policy: With government backing (this is currently lacking), huge successes in transparency and efficiency are possible in Nigeria ObservationsIroko • By digitalizing and streaming Nollywood content on YouTube, Iroko reduced piracy Digital entertainment based views, distributed internationally, and developed a new revenue streamPartners provider based in Nigeria. • Internet and power is majority of Iroko expense despite labor intensity of business Founded by UK trained • Producers only accept cash payment, have mistrust of profit sharing and equity Nigerian. Largest owner of Nollywood movie rights • Adoption: Socially driven online offerings serve as a gateway for ICT Insights and one of the largest • Exposure: There is an international appetite for Nigeria developed content Google partners in Africa • Infrastructure: Power inconsistency and cost constraints almost every business • Education: Potential to reduce mistrust of technology and counterparties page 14
  16. 16. Case Study: Paga- Overview Services • P2P payments: Payment transfers to other Paga customers via mobile phones. Domestic transfer service not offered by Western Union type offerings • Bill pay: Payment via mobile phone under exclusive vendor relationships (Ex. DsTV) • Cash transfer to mobile credit: Dedicated agent network to transfer cash to Paga credit • Mobile phone top up: Exchange Paga credit for mobile phone and internet credit • Online payment/transfers: Online portal to transfer funds between bank accounts and Paga account. Transfer funds to vendors and individuals online via PagaOverview: Platform agnostic mobile payments provider in Nigeria Mobile Payments ContextNigeria, distribution is via Paga Stars agent network(target to bring on 5,000 agents by Q3 2011) • 16 providers at various stages of development/funding issuedEvolution: Founded in 2009, provisional launch in 2011 provisional licenses by the Central Bank of Nigeria in January 2011as part of Central Bank of Nigeria trial • Central Bank of Nigeria expected to issue permanent licenses to four mobile payments providers in May 2011, this has since beenFunding: Funded by founders, venture capital (Tim pushed back to an unspecified date to allow more time for providersDraper-US), and Goodwell West Africa Microfinance to test their networks(Goodwell Investments & Alitheia Capital) • Unofficial feedback from the market is that Paga is the mostUsers: 9,000 unique users as of early 2011 (just post technically competent provider, however other providers havelaunch under provisional license.) Target to register 15M stronger relationships in governmentactive users and reach 40M Nigerians (3 dependents forevery customer reached) page 15
  17. 17. Case Study: Paga- Contributions to scale ICT • Security via lower dependence on cash and greater transparency: Lowers counterparty risk via Limits upside to theft and enables payers to track expenses secure and convenient • Transaction convenience via instant payment: Enables commerce transactions across distances, accurate money transfer, and fast transaction time • Gateway for banking services: Initial payment service mimics current Extends alternative financial activity, serves as a stepping stone towards greater utilization of financial services (lending, savings, investment) services to the “un-banked” • Greater visibility into consumer needs: Increased data availability • Online/mobile payments democratize eCommerce: Pushes access Extends opportunities in to the 80-90% of Nigerians that are not banked eCommerce down the pyramid • Opens up new customer base to online vendors: Expands addressable market size for vendors (increases value of online assets) • Infrastructure issues raise cost of operation: • Consistent power not available via utilities, Paga requires a diesel generator to power operations at a cost of $800 per week • Internet cost high relative to other geographies ($200-300 for basic unlimited internet package) Challenges • Physical site security required at all times • Very limited access to capital in Nigeria: Only one tech focused fund serves Nigeria, Paga leveraged international network for funds • Limited regulatory transparency raises risk to operation: Enforcement of licenses unclear, timing of licenses and evaluation criteria not made public page 16
  18. 18. Hierarchy of ICT Needs: Morocco Hierarchy of ICT Needs: Morocco Illustrative quote: “We don’t compare ourselves to the rest of Africa, we compare ourselves to the rest of the World” – Moroccan ICT expert page 17
  19. 19. Morocco roadblocks and pathways Roadblocks Pathways Knowledge exchange events in sub-Saharan Africa: Use Limited exposure to sub-Saharan Africa: Limits education as a means to open up markets and support other extent to which Morocco serves as a continental leader African countries 1 International partnerships and engagement in continental and scope of market access for domestic tech companies symposiums: Leverage opportunities for in person meetings with potential partners Lack of research and development Lower barriers to University researcher participation in commercialization: Top talent largely in Universities 2 upside to commercialization: Leverage Silicon Valley and with limited ability to commercialize technology Israel models to tech research acceleration Opportunity for greater exposure of top technology talent to non-Africa innovation hubs: Current Expand exchange programs to include greater diversity of 3 Morocco (age and sector) and increase number of people exchange programs limited to only a few participants (ex. Only 20 in South Korea exchange) who are able to attend Limited utilization of technology by broad Increase familiarity with technology at a young age: Provide population beyond basic services: Adoption in continued support to educational initiatives (ICT as a right not a schools still in transition period with some push-back privilege) 4 from teachers. Few popular organically developed Provide greater support to very young, innovative websites. Limited use of mobile and purely online companies: Offer stepping stone incubators to support payments. companies not yet prepared to enter techno-parks page 18
  20. 20. Insights from firms on challenges to growth - Morocco Observations • Businesses in the Technopark benefit from co-located travel services, printing, healthCasablanca Technopark services, and postal services; also benefit from shared utilities, insurance, and space • Visible examples of success emerged from the Technopark. Ex: First Mile Telecom, Provider of space, education, Arcanes Technologies, Mobilinfo, Al Hambra Design, and Axentis Group and back office services for • Co-location of businesses has enabled collaboration among “residents” ~150 Casablanca based tech • High operational costs: Shared spaces/incubators lower cost of operation Insights companies. Founded by • Exposure/Education: More youth likely to pursue technology when there is high Ministry of Commerce, awareness of upside of a tech career and spaces to explore the interest Industry and ICT • Networks: Domestic proximity of companies enables scale through collaboration Observations • Classes are taught in English and international exchange programs are part of theAl Akhawayn University curriculum, students show a facility with interaction with foreigners Independent University that • Executive program annex located in the Casablanca Technopark among medium and offers research and technology small enterprises focused concentrations. Funded by King Fahd of Saudi • Exposure: Interaction and experiences abroad at a young age encourages global Insights and King Hassan II of Morocco. collaboration and scale in the future Has an annex in the • Education: Proximity to corporations enables more tailored education and increases Casablanca Technopark the likelihood that tech managers will pursue advanced skills training ObservationsRabat Technopolis • Technopolis divided into six “poles of operation”: Research, Development, Microelectronics, Media, Off-shoring, and Academics • Domestic and International success stories have leveraged the Technopolis. Ex: Science park for engineering, Nemotech Technologie, EDS-HP, Cleanroom, and Alcatel high tech, education, and R&D focused enterprises. • Networks: Clear external communication of capabilities and co-location of Insights Founded by the government complimentary initiatives enables greater collaboration of Morocco. • Exposure: Visibility of success stories and proximity of domestic companies to international leaders raises profile of local companies and boosts knowledge sharing page 19
  21. 21. Case Study: Casablanca Technopark- Overview Services • Space provision: secure, single and multi-office sites for companies, conference facilities, and social areas for residents • Back office administration for residents: dedicated offering includes for residents includes a travel agency, copy/print center, post office, multiple banks, insurance, web hosting, fidelity cards (preferred pricing at businesses) and utilities • Information distribution: blog and newsletter format to inform the Maroc tech community about conferences, positions, classes, and innovations • Education: home of Al Akhawayn executive education center, and venue for debate and tech classes. Sample classes include Java development, network administration, community management, and entrepreneurshipOverview: Provider of clustered space, education, and • Community events: offers annual events outside of Casablancaservices for technology focused small and medium sized (Oujda, Meknes, and Agadir) to extend discussion of technologyenterprises across the countryEvolution: Founded in 2001, supervised by the Ministry ofCommerce, Industry and ICT Sample ResidentsFunding: 65% of funding from private Moroccan banks • Innosoft • Al Akhawayn University • Irsal Solution(AttijariWafa Bank, BMCE Bank, La Banque Centrale • ThinLine • Arcanes Technologies • KosinuxPopulaire, Banque Commerciale du Maroc, La Caisse de • Vigeo Group • Synergy Formation • FTZ MarocDepot et de Gestion); 35% funded by the Moroccan • Isis Market • Netcom Technologies • ArtMaggovernment • Bull Maroc • Wind International • Amexs • Axentis Group • Prima Group Afrique • AlgortechUsers: ~170 small and medium sized technology focused • Parnet • IT Skills Services • Geoconseilenterprises (PME), some satellite government offices • Intechno • P2P Solutions • Infoone(customs, tech), executive education program of Al • Just Ask • XPI (Expanded Payment) • Adelo ServicesAkhawayn University • Techma Maroc • Willnet page 20
  22. 22. Case Study: Casablanca Technopark- Contributionsto scale ICT • Shared services: Utilities, travel, printing, facility administration, Lowers the risk and cost of doing connectivity, security, and information business • Co-located enabling functions: Post office, travel agency, health services, fidelity card, and web presence services • Central venue for education: Three classroom spaces used by residents and outside organizations for tech education Provides education and exposure • International tech event organization and knowledge sharing: Venue for startup weekend, offers national education with Numeric • Grouping and social events for residents: Collaboration and Facilitates collaboration with knowledge share fostered via resident diversity and grouping other PMEs and MNCs • Proximity to MNCs and Offshoring hubs: Location near tech MNC’s, Casa Nearshore, and airport lowers barriers to access for PMEs • Services for very early stage startups: Limited tools for very small companies (TPEs), activities confined to one off events Challenges • R&D hub partnerships for commercialization: Limited partnership with one university, opportunity to become more of an R&D hub page 21
  23. 23. Common continental challenges Infrastructure consistency (high cost of operation) • Power consistency: largely an issue in Kenya and Nigeria, requires redundancies (generators) and added expense for maintenance • Security requirements: high physical and virtual security needed • Pathways: incubators/shared services, role for government as a change agent Exposure lacking (international and domestic) • International exposure: leaders of most firms that scale have international education/exposure. Need exposure to innovations, markets, and funders Gibraltar Tunisia • Domestic exposure: in relationship based societies, tech pros least connected West Sahara Morocco Algeria Libya Egypt • Pathways: expert exchange, international competitions/challenges, forums Mauritania GambiaGuinea-Bissau Senegal Mali Burkina Faso Niger Chad Sudan Eritrea Djibouti Digital literacy lacking • Addressable market small: consumers not able to adopt advanced applications of Guinea Nigeria Somalia Côte d Ivoire Ghana Sierra Leone Central African Republic Ethiopia Liberia Togo Cameroon Benin ICT without understanding, this shrinks the ICT market Equatorial Guinea Uganda Kenya Gabon Democratic Republic of Sao Tome and Principe Congo Rep. Congo • Staffing a challenge for ICT firms: top talent expensive, trend to hire from intl. Rwanda Tanzania Burundi Seychelles • Pathways: digital literacy in public education, subsidized forums, certifications Angola Comoros Zambia Mayotte Zimbabwe Malawi Mada- gascar Namibia Botswana Mozambique South Africa Swaziland Cost of hardware high, mobile as a gateway Lesotho • Low internet penetration: Cost of connection high especially in rural areas • Full powered hardware beyond reach: Low GDP/capita limits ability to spend • Pathways: with growing capability of mobile, this has emerged as a gateway Fraud and transparency limiting credibility • Piracy, fraud, and theft rampant: Outdated DVDs lack protection, lack of digital security, cash based societies boosts benefits to theft • Some corporations lack transparency: Manual accounting, succession issues • Pathways: ERP systems integration, streaming/cloud based content delivery, boosted utilization of online screening and digital ID, online/ mobile payments page 22
  24. 24. Next steps • Identify focus areas for each constituent (e.g., WB, AfDB, infoDev) • Prioritize initiatives for implementation • Conduct in-depth case study review • Refine cross-team recommendations page 23
  25. 25. APPENDIX page 24
  26. 26. Appendix: ICT hierarchy classification (Infrastructure, 1/8) 1 2 3 4 5 Daily power Weekly power Monthly power Very few power Very few power interruptions, interruptions, interruptions, interruptions, interruptions, Utilities high cost to relatively high some cost to availability in line supply above consistency cost to consistency with demand demand consistency Access only via Cable access Cable access Cable access Cable access ICT satellite with less than 1 with less than 5 with less than 10 with greater thanInfrastru Internet technology Tb/s capacity Tb/s capacity Tb/s capacity, 10 Tb/s capacity, cture and more than and more than three carriers three carriers Infrastructure Infrastructure Infrastructure Infrastructure Infrastructure not subject to theft subject to theft under realistic relatively safe, vulnerable to Infra- or sabotage to a or sabotage to a threat of theft or not vulnerable threats of theft or structure point that point where sabotage sabotage Security development is development is prohibitively expensive expensive page 25
  27. 27. Appendix: ICT hierarchy classification (Environment, 2/8) 1 2 3 4 5 Dedicated National strategy Funded national Execution of Execution of Level of agency for ICT in place with strategy for ICT national strategy successful govern- regulation and support from with broad and partnerships national strategy ment implementation ministry and federal support with local ICT and partnerships support broader federal with local ICT for ICT government Low level of Moderate level Moderate level High level of High level of broad based of broad based of broad based broad based broad based education (less education (4-6 education (6-8 education (8+ education, digitalEnviron Educ- than 4 years years mean years mean years mean literacy training ment mean schooling), schooling), no schooling), some schooling), the norm for ation no access to ICT access to ICT in access to ICT in access to ICT students in in public schools public schools public schools and some digital public schools, literacy training ICT integrated in public schools into instruction Demo- GDP per capita GDP per capita GDP per capita GDP per capita GDP per capita graphic < USD 1,500 < USD 3,000 < USD 10,000 > USD 10,000, > USD 10,000, consider- urban population urban population ations < 50% > 50% page 26
  28. 28. Appendix: ICT hierarchy classification (Accessibility, 3/8) 1 2 3 4 5 Mobile Mobile Mobile Mobile Mobile penetration penetration penetration penetration penetration Mobile < 15% < 30% <50% <75% > 75% phones Internet Internet Internet Internet Internet penetration penetration penetration penetration penetration Internet < 15% < 30% < 50% < 75% > 75%Accessi bility Negligible Some access to High access to High access to High access to access to shared shared shared shared shared technology in technology via technology via technology via technology via Shared schools, public schools, public schools, public schools, public schools, public technol- spaces, or spaces, or spaces, or spaces, or spaces, or ogy private private private private private services enterprises enterprises (ex. enterprises (ex. enterprises (ex. enterprises (ex. Internet cafes) Internet cafes) Internet cafes) Internet cafes) that is expensive that is that is inexpensive inexpensive and reliable page 27
  29. 29. Appendix: ICT hierarchy classification (ICT enabled privatesector, 4/8) 1 2 3 4 5 Banked Banked Banked Banked Banked population less population is population is population is population is than 30% 30% to 50% of 50% to 70% of 70% to 80% of greater than (mainstream total population total population total population 80% of total Reach of banks and (mainstream (mainstream (mainstream population banking alternative banks and banks and banks and (mainstream channels) alternative alternative alternative banks and channels) channels) channels) alternative channels) ICTenabled Most Most Transactions, Transactions, Transactions,private transactions, transactions inventory, inventory, inventory, sector inventory, inventory, accounting, accounting, accounting, accounting, accounting, logistics, and logistics, and logistics, and logistics, and logistics, and payroll payroll payroll Use of payroll payroll completed using completed using completed using tech by completed completed spreadsheets POS and ERP POS and ERP SMEs manually manually with with some use of systems that are systems that are some use of database and not fully fully integrated spreadsheets ERP/ POS integrated and POS functionality systems page 28
  30. 30. Appendix: ICT hierarchy classification (content development,5/8) 1 2 3 4 5 Very few Some web Many web Many web Many web developers, developers, developers, developers, at developers, at Domestic 0 domestically at least 3 at least 2 least 4 least 1 website developed domestically domestically domestically domestically develop- websites in top developed developed developed developed ment 20 sites websites in top website in top 10 website in top 10 websites in the 20 sites sites sites global top 20 sites Largely informal Largely informal Some reliable High output and High output and content output, content output, formal content reliability of reliability ofContent Domestic little use of the high use of output through formal content formal contentdevelop- content internet to forums, blogs, dedicated via dedicated via dedicated ment output disseminate and social channels channels channels for information networking sites international to disseminate audiences information Little innovation Some innovation High innovation High innovation High innovation, in software and in software and in software and in software and domestically Domestic hardware, high hardware, high hardware, some hardware, low produced innovation dependency on dependency on dependency on dependency on platforms platforms platforms platforms platforms develop for developed developed developed developed international internationally internationally internationally internationally audiences page 29
  31. 31. Appendix: ICT hierarchy classification (content export, 6/8) 1 2 3 4 5 Negligible Some Some Moderate High international international international international international consumption of consumption of consumption of consumption of consumption of domestically domestically domestically domestically domestically developed developed developed developed developed innovations innovations, innovations, innovations, innovations, largely focused focused on focused on focused on Global on content rather platforms and platforms and platforms and use of than platforms content content content inno- to consistencyContent vationsexport from country page 30
  32. 32. Appendix: ICT hierarchy classification (BPO, 7/8) 1 2 3 4 5 Negligible Some Moderate High Level 4 AND specialization of specialization of specialization of specialization of customer Speciali- business business business business communications, zation of functions functions, largely functions, functions, and consistent tech isolated to one- including including engagement with enabled off projects outsourced ICT outsourced ICT external experts functions advisory, and advisory, on business administrative external support processes functions of logistics, and administrative BPO functions Negligible BPO Moderate BPO Moderate BPO High BPO High BPO Destina- service provision service provision service provision service provision service provision tion as a to international to international to international to international to international special- companies companies, but companies, companies, companies, ized highly some off shoring some off shoring several off global fragmented clusters, typically clusters, a shoring hubs, a provider a secondary primary source primary source source for for some for many international international international companies companies companies page 31