Kenya ICT Board Monitoring and Evaluation Survey Results (Phase II) Francis Hook Regional Manager IDC East Africa 19th February 2013Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
AgendaMarket Overview (Key Indicators 2010, Kenya IT Market Value (US$M)Forecast 2010-2015, Kenya IT spend by Vertical segments) ICT Ecosystem Analysis – Profiling of top systems integrators in the market,challenges faced, national and regional presence and the market outlook.Residential Usage and Penetration HighlightsBenchmarking Kenya Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Kenya ICT Market OverviewCopyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 3
Market OverviewGoing by various Key Performance Indicators (KPIs) and IDCs market sizing forthe Kenyan ICT market, the sector has performed well with good growth in value,usage and access (across most sectors) between 2010 and 2011.As more infrastructure is put in place the ICT expenditure focus will shift toservices (maintenance, support, implementation, customization, etc) and software(custime software development, mobility, business analytics, etc).The cost of devices and internet services still remains a constraint that keepsmore users from adopting ICT and current users from increasing their usage.Less advanced regional markets (in terms of skills, ICT sophistication and size ofprojects) in Eastern Africa continue to attract the attention of several local playerswho are expanding their presence to these markets.Overall the Kenyan ICT market continues to thrive and from 2013 onwards, themost notable issues will include: the new government structure as countygovernments wean themselves away from national governments to become moreautonomous, increased investment by vendors, increased venture capital activityaimed at start ups and developments with the 4G shared network infrastructure. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 4
Market OverviewKenya ICT Market Key Indicators Indicators 2010 2011 Change % Volume of international traffic (Mbps) 20,209.56 52,938.00 162% International Internet bandwidth, Mbps per 10,000 4.2 7.7 83% population Number of Computers per 100 inhabitants 2.4 2.7 14% percentage of households with a personal computer 6% 8% 27% Total number of Internet Subscriptions 4,716,977.00 6,152,687.00 30% Total number of internet users 10,199,836.0 17,382,034.00 70% 0 Total number of main fixed lines (fixed lines plus 380,748.00 283,546.00 -26% fixed wireless) Total number of mobile subscriptions 24,968,891.0 28,080,771.00 12% 0 Number of .Ke domain names 18,000.00 24,322.00 35%Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 5
Market OverviewKenya ICT Market Key Indicators 2010 Data 2011 Data ChangeConnectivity development (%) 1 Volume of international traffic (Mbps) 20,209.00 52,938.00 162.0% 2 International Internet bandwidth, Mbps per 10,000 4.2 ++7.7 83.3% population++ 3 Number of Computers per 100 inhabitants 2.4 2.7 13.9% 4 % of households with a personal computer 6.3% 8.0% 27.0% 5 Total number of Internet Subscriptions 4,716,977 6,152,687 30.4% 6 Total number of internet users 10,199,836 17,382,034 70.4% 7 % of population with Internet Access 0.26 0.36 40.2% 8 Internet subscribers as % of total population 11.5% 14.8% 28.6% 9 Total number of main fixed lines (fixed lines plus fixed 380,748 283,546 -25.5% wireless) 10 Total Fixed line penetration (per 100 inhabitants) 97.0% 72.0% -25.8% 11 Total number of mobile subscriptions 24,968,891 28,080,771 12.5% 12 Total penetration of mobile services (per 100 63.2% 71.3% 12.8% inhabitants) 13 Total teledensity 64.2% 72.0% 12.2% 14 Number of .Ke domain names 18,000 24,322 35.1% 15 IT Spending per capita $18.5 $24.4 32.1% ++per user from 2011 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 6
Market Overview Kenya ICT Market Key IndicatorsBroadband demand is not constrained by cost or access 22 Price of Internet Access for 512 Kbps $22.00 $22.00 0.0% 23 Fixed broadband Internet access tariff ($ per month) $39.80 $37.90 -4.8% 24 Dial up Internet tariff ($ per Month) $29.5 $29.3 -0.7% 25 Number of BPO jobs 12,500 13,100 4.8% 26 Number of BPO seats 5,000 5,696 13.9% Universities are connected to broadband services 27 Number of educational institutions connected to national network 60 65 8.3% 28 Number of educational campuses connected to national network 74 78 5.4% 29 Number of students connected to broadband 176,000 250,000 42.0% 30 Number of universities connected to broadband 15 29 93.3% 31 Number of networked PCs per 100 students 6 5 -16.7% ++per user from 2011 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 7
HighlightsKenya ICT Market Key Indicators International traffic grew by an impressive 162.0% between 2010 and 2011 and mainly riding on increased internet subscriptions that were mainly comprised of mobile data connections. . The total number of households with a personal computer (PC) grew from 6.3% to 8.0%. Internet users was recorded as 17.38 million users from 10.99 million recorded during the previous year. Fixed lines declined to 283,546 in 2012 from 355,493 in 2011, representing a decline of 25.5% during that period. The total number of students connected to broadband rose from 176,000 in 2010 to 250,000 in 2011 indicating an increase of 42% increase year on year. The number of universities connected to broadband services increased from 60 in 2010 to 65 in 2011 and mainly attributed to some educational institutions that have multiple campuses getting connected to KENET. The number of registered government domain names reduced in 2011 largely due to lack of renewal of domains mainly by local government entities (municipal and county councils). Most previously registered domains have been allowed to lapse.Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 8
Market OverviewICT Spending by Technology Areas Kenya ICT Market Size 2011 and Forecast to 2016 ICT market spending is expected to grow at an annual compound growth rate of 9.1% between 2011 and 2016 to reach a value of US$1,596.8 million. During that period the proportion of hardware spend will decline from 81.1% to 75.7% giving room for growth of services from 10.4% to 15.1%, and software from 7.8% to 9.2% in 2016Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 9
Market OverviewSpending by Vertical SectorsCopyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 10
Kenya ICT EcosystemCopyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 11
Kenya ICT EcosystemStructure – Systems Integrators CHANNEL REVENUE BREAKDOWN REMARKSCopyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 12
Kenya ICT EcosystemHighlights 1/2Vendors – In Kenya there are between 20-30 vendors with a direct presence in the countrywith the main function of business and channel development, product support, capacitybuilding, and in some cases dealing directly with big companies (multinational companies andlarge accounts)/Distributors – There are between 20-30 distributors of software and hardware, with somefocusing on very niche markets and others distributing products across the channel to bigsystems integrators, telecommunication providers. A good number of distributors act as avendor presence in the market.Tier 1 VARs – These would number between 30 and 40 systems integrators mostly withnationwide presence and targeting mainly the enterprise sector with infrequent businessamong the Small and Medium Enterprise (SME) segment. In this layer there is a lot ofemphasis on value addition and therefore IT Services contributing as a major revenue stream.Tier 2 VARs - This layer comprises market players focused mainly on the SME segmentwith lesser nationwide presence and in some cases focused on regions outside Nairobi (e.g.Coast, Rift Valley, Central). There are anything between 80 and 120 players in this segment.Retail market players – Players focused mostly on "off the shelf" types of business, movinghardware and selling single user software licences, peripherals and so on. Their main focus ison the consumer segment but often supplying the SMB segment with good that do not requiresupport or significant after sales service. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 13
Kenya ICT EcosystemNational and Regional Presence National presence Less than 40% of the local companies have a presence in Mombasa, followed by Kisumu, 26.3% and Eldoret 10.5%. Some towns are viewed as satellites of other nearby towns, especially in the Nyanza, Rift Valley and Western Provinces. E.g. players may elect to have a presence in Eldoret in order to reach out to Nyanza and Western provinces. Regional presence While Uganda is a smaller market than both Ethiopia and Tanzania, more local players have invested there (23.9% compared to 14.1% and 19.7% respectively in the other two countries. This is mainly due to the more relaxed investment environment in Uganda.Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 14
Kenya ICT EcosystemKenya as a regional HubSouthern Sudan has recently become a main focus area for local playersdespite the high risks of operating in that country and its high dependence onoil for foreign exchange. Nonetheless, some companies are willing to takerisks, especially to pursue opportunities in government and with InternationalNGOs.While Tanzania as a member of both the East African Community (EAC) andthe Southern African Development Community (SADC) is more inclinedtowards more cordial relations and trade with SADC countries. Indeedelsewhere in the economy there are many investments from South Africa in themining, energy and financial sectors.Among the other countries where about 17% of local players either have apresence or are undertaking major projects include:Democratic Republic of Congo; Ghana; India; Malawi; Mauritius;Mozambique; Nigeria; UAE; Zambia; Zimbabwe;Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 15
Kenya ICT EcosystemChallenges facedChallengesLimited and Expensive Financing – for projects and importation of goods.Long sales cycles – prolonged procurement cycles as well as cyclic spendingwith government . Doing business with government is also cited as a major problemarea owning to protracted procurement cycles.Inconsistent importation regulations and tariffs – Import duties and otherlevies are frequently cited as irregular and mostly stemming from either a poorunderstanding of different ICT goods or poor definitions of the different classes ofICT products.Lack of ICT skills – This is problem not unique to systems integrators and cutsacross the entire ICT landscape from the supply side to the demand side.Theft and piracy – the culture diminishes value especially for local developers Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 16
Kenya ICT EcosystemSystem Integrators’ Market OutlookSystems Integrators are optimistic about the local market growth and among themain areas they see good opportunities for improvement to support growthinclude:Development of Skilled resources;Skills transfer plans (by vendors) to supported channel;Business Analytics needs are growing;Assembling complementary product portfolios;Increase products portfolioNational and regional expansion to reach into other towns and cities and theregion. Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 17
Residents Survey HighlightsCopyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 18
Devices at home & Household Composition Q15. How many of each of the following types of devices do you have at home? Average Number Maximum Number Type per HH per HHDesktop 0.33 2Laptop 0.52 3Television Set 1.00 3Fixed telephone line (CDMA, Fixed wireless, Dial up) 0.01 1Mobile cellular telephone/Handphone/Mobile phone 1.84 7Satellite Antenna (Satellite dish) 0.23 1Radio set 0.87 3 Traditional devices are more available at households than advanced ones There is almost 1 TV set and 1 radio set in each of the surveyed HH Mobiles are more common than other items (almost 2 per HH) 19 Copyright IDC. Reproduction is forbidden unless authorized. All = Total Sample (n=750) Base rights reserved.
Resident’s Survey HighlightsInternet Usage at homeQ16. Do you have an Internet connection at Internet Home Penetration by Location home? 41% 32% 33% 49% 49% 65% 64% 66% 72% 59% 68% 67% 51% 51% 35% 36% 34% 28% 50% 50% Thika Eldoret Garissa Nairobi Kisumu Mombasa Nakuru Machakos Kakamega Internet Home Penetration by SCL Yes No Base : Total Sample (750) 43% 42% 63% 85% 95% 57% 58% 37% 15% 5% AB C1 C2 D E Yes No Internet usage increases by SCL levels. It is highest in Nairobi (59%) Internet usage increases by SCL levels. It is highest in Mombasa (37%) 20 Base = The figure in parenthesis represents Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. the base of the respective category
Internet Usage at homeType & Speed of Connection Q18. What type of Internet connection Q19. What is the speed of your main internet connection at do you have at home? home? Mobile broadband / Broadband delivering speed of 256 narrowband Connection 87% 32% kbps to less than 1 Mbps /modem Broadband delivering speeds from ADSL line (dedicated line for 27% 4% 1Mbps to less than 4Mbps internet (broadband) Broadband delivering speeds from 19% Dial up connection (using 4Mbps to less than 8Mbps 1% fixed phone line connection) Broadband delivering speeds higher 16% than 8Mbps Other connections 34% Dont know 6% Base : Internet users (210) Base : Internet users but NOT VIA DIAL-UP (210) Dial-up is phased out by other developed internet connections Connections with speed less than 1Mbps are used in 41% of the HH 21 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Internet Usage at homeInhibitors for Not Using internet at home Q17. What are the reasons for not having internet connection at home till now? We don’t have PC 63% We can’t afford internet subscription 35% I use internet in other places, and there 33% is no need to have one at home There are no internet cables / 23% infrastructure in our neighborhood I don’t know how to use internet 11% Internet connections are poor in terms 3% of quality Base : No Users of Internet (540) 22 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Type of PC, Internet Device & Mobile Service Used Q25. What kind of PC do you use? Included Desktop 78% media tablets Laptop 61% in Phase II Media Tablet 14% Base : Users of PC (493) Q31. Which of the following devices have you used to access the Internet in the past 12 months? Desktop 78% Q60. Which kind of mobile service do you use? Laptop 60% Prepaid 96% Other mobile phone / internet 57% enabled mobile phones Postpaid 3% Smartphone 37% Both 1% Media Tablet 9% Base : Users of Mobile Phone (746) Base : Users of Internet (570) 23 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Purposes for Using PC Q27. What is your primary purpose for using the PC? 2012 2011Communication 83% Personal usage 71% Entertainment 66% Entertainment 66% Communicatio 64% Work 57% n Education 45%Other Personal 54% purposes Work 36% Education 28% Base : Users of PC (519) Base : Users of PC (493) Respondents use PC mainly to perform personal task, especially old individuals 45+ years Entertainment and education purposes drive respondents 15-34 yrs old to use PC. These reasons decrease significantly among older users Old males (45+ yrs) tend to use PC for work reasons much more than other demographics. 24 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Purposes for Using the Mobile Phone Q59. Which of the following services do you actively use on your mobile device? 2012 2011 SMS 98% Voice services 97% Voice services 97% SMS 96% Social media 65% Access to social media websites 45% Web Browsing 57% Web Browsing 42% Access to Email 52% Entertainment 37% Entertainment 50% Access to Email 35% Chatting (IM) 41% PIM 31%PIM (personal information… 35% Chatting 24% MMS 18% Sending MMS 15% Base : Users of Mobile Phone (746) Base : Users of Mobile Phone (721) Calling and texting share respondents main usage of the mobile (around 97-98%) The usage of internet enabled services and PIM mainly attracts the young category (15-34 yrs). Their usage decreases by age 25 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Financial Transactions on the Internet and MobileType of transition, Number of online Purchases Q38. Which of the following on-line / electronic (through internet or mobile) services have you used in the past 12 months? Top up of Airtime through Mobile Money Transfer 96% Payments (utility & mobile bills etc) through Mobile Money … 55% Buying of product through Mobile (Mobile Money transfer) 36% Selling of product through Mobile (Mobile Money transfer) 34% Payments of School fees through money mobile transfer 23% Banking (online Banking transaction) 7% Payments (utility & mobile bills etc) through Internet 6% Buying of product and services through internet 5% Selling of product and services through internet 3% Base : Respondents Using Online Banking or purchases (618) 4 of the top 5 e-transactions are done via mobile Online e-transactions are almost not present and include online banking (7%), utility payments (6%) and the purchase of products and services (5%) 26 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Tasks Performed on the Internet Q34. Do you use the Internet to perform any of the following tasks? Search for information 75% Communicate with colleagues 64% Downloading movies, images, music, watching TV or video, or… 59% Communicate with customers/citizens/ residents 37% Getting information about goods or services 33% Education and learning activities 33% Playing or downloading video games or computer games 30% Finding, downloading, and installing software 29% Reading or downloading on-line newspapers or magazines 26% Using peer-to-peer file sharing for exchanging… 25% Keeping viruses, spyware, and ad-ware off your computer 23% Schedule business appointments 16% Getting information from general government organizations 14% Checking a receipt of payments 8% Purchase or place orders goods and services 8% Online banking 6% Interacting with general government organizations 6% Base : Users of Internet (570) The main purposes for using the internet are search for information (75%), communication with colelagues (64%) and downloading (59%) exceeding by far other reasons. Internet users 35+ yrs old perform business-oriented internet tasks (communicating with customers, scheduling appointments, etc.) more than younger users who look for more social, entertaining or educational activities online 27 Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Satisfaction With Internet ServiceQ46. The following questions are about your satisfaction with the Internet service you use. I will ask you about various characteristics of the service, for each one please select a number from 1-7, where 1 = Very dissatisfied, and 7 = very satisfied Cost of your Internet service 11% 20% 69% Value for money spent on your Internet service 15% 24% 61% Reliability of your Internet service 12% 18% 70% Speed of your Internet service 18% 20% 62% Customer support after sales 21% 39% 40% Overall Internet service 5% 24% 71% Dissatisfied (Scale 1-3) Neutral (Scale 4) Satisfiied (Scale 5-7) Base : Users of Internet (570) Base = The figure in parenthesis represents Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. the base of the respective category
General Attitudes Towards ICT Q64. For each of the following statements, please rate your agreement level from 1 to 7 Learning how to use all the features of my mobile phone is 9% 13% 78% important to my life now and in the future. Learning how to use the Internet better is important to my life 7% 10% 83% now and in the future. Having PC skills is critical to my life now and in the future. 4% 15% 80% Using on-line banking services is important to my life. 32% 28% 41% Purchasing goods on-line is important to my life. 40% 29% 32% Bottom Box (scale 1-3) : Disagree Middle Box (scale 4) : Neutral Top Box (scale 5-7) : Agree Learning basic ICT skills is more prominent than using sophisticated services like purchasing online or online banking Highest priority is given to learning how to use the Internet usage (83% agree), PC usage (83%) and mobile usage (78%). Copyright IDC. Reproduction is forbidden unless authorized. All= Total Sample Base rights reserved. (n=750)
Awareness of e-Government ServicesQ65. Are you aware of any government services available online? If yes, have you used any for your non-work related matters in the past 12 months? Not aware of any services Not aware of any services 47% 34% provided online provided online Aware of them, and have used any online services more than 16%Aware of them, but have never 12 months ago 39% used any online services Aware of them, but have not used any online services in the 36% past 12 monthsAware of them and have used 14% Aware of them and have used them in the past 12 months 14% them in the past 12 months Base : Total Sample (750) Base : Total Sample (750) 2011 2012 Overall awareness of e-government services is significant (53%). But their actual usage is low (23%), concentrated especially in Nyeri (23%) Survey question response options were adjusted in Phase II to include “Aware of them but have not used any online services in the last 12 months” Base = The figure in parenthesis represents Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. the base of the respective category
Satisfaction with e-Government Services Q70. How would you rate your experience with the usage of e-government services? Please rate your satisfaction for the following points using 10 point scale where 1= very dissatisfied and 10 = very satisfied. Variety of e-services provided 7% 69% 24% Easiness of using it 19% 27% 54%Quickness of processing the transaction 16% 63% 21% Quality of the transaction in general 3% 66% 31% Bottom Box (1-3) : Dissatisfied Middle Box (4-7): Neutral Top Box (8-10): Satisfied Overall satisfaction with e-government services is not high (not exceeding 31%) The majority of the users of such services were neutral in rating their experience while using such services Copyright IDC. Reproduction is Base = Usersauthorized. All rights reserved. forbidden unless of e-Government Services in Past 12 Months (n=70)
Other e-Government Services Q71. Are there any other government services you would like to see available on line?Registration of National ID Cards. 12%Online admission into Secondary / public universities. 9%Appointment /job application/employment opportunities. 6%Application/ issuance of Birth certificates. 6%Voting online. 5%Payment of Land Rates. 4%Lists of corrupt High Ranked Government Officials. 4%Application of passport/other travelling document. 2%Online booking in government hospitals/health services appointment. 1%Variety of government businesses. 1%Application of CDF bursaries. 1%Registration of new business online . 1%Online checking of Motor Vehicles ownership. 1%Business purposes/International document to do business with other countries and also between local businesses. 1% None/Don’t Know : 62% +++Open ended question – responses grouped according to similarity Copyright IDC. Reproduction is Base = Usersauthorized. All rights reserved. forbidden unless of e-Government Services in Past 12 Months (n=70)
Barriers to ICT Usage Q63. What are some of the reasons that may be limiting your use of ICT (computers and Internet)? High costs to connect to the Internet 38% High costs of buying/renting computers 35% High costs of maintenance and repairs for computers 33% Risk of viruses is too high when using the Internet 21% Lack of required skills to use computers/ internet 18% Lack of trust for ICT (e.g. security/ privacy issues on the… 18% Computers/Internet not available at home 16% There are no barriers at all 16% Technology is too complicated 14% Not secure to do business/ make transactions over the… 9% Internet cafés are hard to reach or find 7% Computers/Internet not available at work 5% Computers/Internet not available at school/ university 4% Not enough websites / content in local language 3% Base : Total Sample, DK excluded (725) Unavailability of computers accompanied with theirs high cost as well as the costs of internet connections are the main barriers to the use of ICT Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
Benchmarking KenyaCopyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 34
BenchmarkingInternet user penetration KPI Total Internet user penetration 2010 22.5% Kenya 2011 25.9% YoY change 15.1% 2010 14.0% RSA 2011 12.3% YoY change -12.1% 2010 28.3% Nigeria 2011 28.4% YoY change 0.2% 2010 12.7% Rwanda 2011 13.0% YoY change 2.2% 2010 33.3% Ukraine 2011 45.0% YoY change 35% 2010 invalid data Philipines 2011 invalid data YoY change 2010 29.5% Egypt 2011 26.7% YoY change -9.4% 2010 41.4% Morocco 2011 49.0% YoY change 18.3% Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 35
Benchmarking Extent of business internet useKPI Extent of Business Internet Use - WEF Indicator 2010 4.77 Kenya 2011 5.0 YoY change 4.8% 2010 5.14 RSA 2011 5.3 YoY change 3.1% 2010 4.5 Nigeria 2011 4.5 YoY change 0.0% 2010 1.75 Rwanda 2011 4.9 YoY change 180.0% 2010 4.72 Ukraine 2011 5.1 YoY change 8% 2010 4.5 Philipines 2011 5.6 YoY change 24.4% 2010 4.72 Egypt 2011 4.9 YoY change 3.8% 2010 4.6 Morocco 2011 4.5 YoY change -2.2% Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 36
BenchmarkingGovernment ICT Use and EfficiencyKPI ICT Use and Government Efficiency - WEF Indicator 2010 4.35 Kenya 2011 4.4 YoY change 1.1% 2010 4.07 RSA 2011 3.9 YoY change -4.2% 2010 3.8 Nigeria 2011 3.8 YoY change 0.0% 2010 no data Rwanda 2011 5.5 YoY change 2010 3.56 Ukraine 2011 3.6 YoY change 1% 2010 3.6 Philipines 2011 3.7 YoY change 2.8% 2010 4.43 Egypt 2011 3.9 YoY change -12.0% 2010 4.2 Morocco 2011 4.0 YoY change -4.8% Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 37
Benchmarking Internet Users vs Connections as a % of population Internet Users vs Connections as a % of populationIn more developed 60.0%countries the total number ofconnections vis a vis the 50.0%number of users are evenlyspread 40.0%In countries likeKenya, Nigeria andMorocco, there are lower 30.0%numbers of connections buthigher number of users 20.0%indicating most connectionsare shared connections andlargely comprise business 10.0%connections (includingpublicly accessible 0.0%connections like cyber Kenya RSA Nigeria Rwanda Ukraine Philipines Egypt Moroccocafes, education institutions). Total Internet user penetration Internet subscribers percentage of total population Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 39
BenchmarkingTotal Internet vs Household penetration Total Internet vs Household penetrationKenya has a higher internet 45.0%penetration vis a vis South Africa 40.0%but mainly bolstered by mobileinternet connections though with 35.0%a lower proportion of householdsconnected owing to a declining 30.0%fixed network and poor 25.0%development of DSL basedservices. 20.0%Kenya compares much better 15.0%than both Nigeria and Rwandaon both counts 10.0%Egypt has a much higher 5.0%overall and household internet 0.0%penetration with a huge gap of Kenya RSA Nigeria Rwanda Ukraine Philipines Egypt Moroccoalmost 25 percentage points athousehold level. Proportion of households with internet access Total Internet user penetration Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 40
BenchmarkingComputer Penetration Computers per 100 inhabitantsKenya has slightly higher 9PC penetration rates thanNigeria and Rwanda but still 8very far behind South Africa 7and Morocco, mostly owingto lower disposable income 6than these countries. 5Population figures for 4Nigeria (high) and Phillipnes(low) help skew penetration 3rates either way as do GDP 2per capita figures whenthinking of disposable 1income and installed base 0of computers in households. Kenya RSA Nigeria Rwanda Ukraine Philipines Egypt Morocco Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 41
BenchmarkingHousehold Internet Access vs Household PC Access Household Internet Access vs PC 35.0%In terms of PC Access at the 30.0%household level, Kenya is onlybetter than Rwanda. 25.0%It should be noted that Nigeria 20.0%as a manufacturer of PCs (Zinox 15.0%brand) that are locallyaffordable, accounts for much 10.0%higher PC penetration at 5.0%household levels but negligiblehousehold internet penetration 0.0%given infrastruicture issues(subamrine cables arrived wayafter they did in East Africa) Proportion of households with internet access Proportion of households with a computer Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 42
BenchmarkingBusiness Internet Usage Business Internet Usage Morocco EgyptIn terms of business usageof the internet, Kenya is Philipinesnearly on par with more Ukrainedeveloped countries likeEgypt and Morocco and Rwandaslightly ahead of Nigeria Nigeria RSA Kenya 0 1 2 3 4 5 6 Extent of Business Internet Use - WEF Indicator Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 43
BenchmarkingBroadband Access Tariffs Broadband Access Tariffs $120.00 Despite additional capacity, cost of broadband is still a factor for business $100.00 vis a vis other countries. Nigeria has recently got a $80.00 lot of international bandwidth but constrained somewhat $60.00 by back bone, last mile access and electricity $40.00 challenges. Landlocked Rwanda $20.00 largely relies on bandwidth from operators in neighbouring countries. $0.00 Kenya RSA Nigeria Rwanda Ukraine Philipines Egypt Morocco Internet Access Tariff - Broadband Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 44
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