Ictmaghrebworkshop 111031032303-phpapp01


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Ictmaghrebworkshop 111031032303-phpapp01

  1. 1. ICT MAGHREB Workshop 27.10.2011 Steve Colling Marjaana Karjalainen Anneli Virtanen
  2. 2. Ohjelma 09.00 Seminaarin avaus ja Maghreb- maiden ICT-alan markkina- analyysin päähavainnot Marjaana Karjalainen, Finpro Italy Anneli Virtanen, Finpro Tunisia Steve Colling, Finpro France 09.30 Maghreb – Mahdollisuus ja erilaisuus Kim Fagernäs, Vice President EMEA and APAC, Stonesoft Oyj 09.50 Liikekumppanuustukea kehittyville markkinoille Siv Alhberg, Programme Director, Finnpartnership 10.05 Miten tästä eteenpäin Marjaana Karjalainen, Finpro Italy 10.30 Tilaisuus päättyy Mahdollisuus keskusteluun Finpron asiantuntijoiden kanssa 27/10/2011 2© Finpro
  3. 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 3© Finpro
  4. 4. Tunisia
  5. 5. Tunisia – Arab Spring 27/10/2011 5© Finpro
  6. 6. Tunisia – Arab Spring 27/10/2011 6© Finpro
  7. 7. Tunisia in brief 27/10/2011 7© Finpro 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 Republic
  8. 8. Doing business in Tunisia 27/10/2011 8© Finpro • 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 (69th 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 considered
  9. 9. 27/10/2011 9© Finpro • 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 relationship Tunisia - Future development
  10. 10. ICT, R&D, Innovations 27/10/2011 10© Finpro
  11. 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 2007-2011 27/10/2011 11© Finpro Sources: Tunisiaonlinenews.com 13.10.2010 , OBG: the report - Tunisia
  12. 12. Telecom market 27/10/2011 12© Finpro • 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 enterprise Sources: OBG, The Report, Tunisia 2010, Tekiano
  13. 13. Tunisia as a market 12.10.2011 13© Finpro Strengths • Good business environment • High education level and good ICT skills • Developed and functioning infrastructure • Well developed outsourcing and offshore activities • Gateway to other African countries Weaknesses • ICT sector dominated by public tendering processes which are difficult for foreign companies • Political dimension of the business is still high • Limited market in size Opportunities • Operators looking for concrete solutions to leverage their 3G investments (platforms, services) • First democratic elections at hand Threats • Developing a sustainable business takes time • Competition is getting fiercer
  14. 14. Morocco
  15. 15. Kingdom of Morocco 12.10.2011 15© Finpro 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 monarchy
  16. 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 risk 12.10.2011 16© Finpro
  17. 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 years 12.10.2011 17© Finpro
  18. 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 18© Finpro
  19. 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&D 12.10.2011 19© Finpro
  20. 20. Morocco as a market 12.10.2011 20© Finpro Strengths • Stable and open country with pro- business authorities • Skilled, experienced and English- speaking personnel • Thriving private sector with a sizable number of SME and large corporations as potential clients Weaknesses • Morocco is still a developing country with a large share of poor, rural and illiterate population • Difficult access to large public projects: relations and local partners are necessary Opportunities • State-sponsored projects and nearshoring activities create new and more complex needs • All solutions related to data transfers will keep on growing • A gateway to French-speaking African countries Threats • Increasing competition from local and foreign companies
  21. 21. Algeria
  22. 22. Algeria (People's Democratic Republic of) 12.10.2011 © Finpro 22 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 Republic
  23. 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 cities 12.10.2011 23© Finpro
  24. 24. ICT usage evolutions 12.10.2011 24© Finpro 0 20 40 60 80 100 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Internet users as a % of population Algeria Finland 0 50 100 150 200 Mobile phone penetration rates in % 0 10 20 30 40 50 60 Fixed telephone lines as a % of population
  25. 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 actions 12.10.2011 25© Finpro
  26. 26. Algérie Télécom / Mobilis Djezzy (Orascom Telecom Algérie ) Nedjma Activities Fixed, mobile (2G), satellite, broadband Mobile (2G) Mobile (2G) Market share 100% (fixed) 34,8% (mobile) 41,8% (mobile) 23,4% (mobile) Number of mobile clients 12,29 million 14,79 million 8,28 million Net revenue Doesn’t disclose financial information € 353 million € 377 million Revenue per mobile user (monthly, Q110) Doesn’t disclose financial information 7 € 3,96 € Ownership Algerian State (100%) The Egyptian Orascom Telecom Holding (97%) and the Algerian Cevital SPA (3%). The Algerian government may take control of the company. The Kuwaiti Wataniya Telecom (71%) and the Kuwaiti Gulf Investment Corporation and United Gulf Bank (29%) Telecom operators 12.10.2011 26© Finpro
  27. 27. Algeria as a market 12.10.2011 27© Finpro Strengths • Large untapped market with little competition • Local private ICT companies are mainly SME accessible and responsive Weaknesses • Red tape and heavy restrictions on imports & FDI • Telecom and media sectors dominated by state-owned companies • Underdeveloped infrastructure (networks) Opportunities • Arrival of 3G should create new demands that local resources cannot meet • Expertise and investments needed to initiate cloud computing Threats • Increasing state control over telecom sector may affect competition and delay investments
  28. 28. Project financing
  29. 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. 30. Business opportunities and how to take advantage of them
  31. 31. Business opportunities 31© Finpro Operators Enterprise software Financial sector Outsourcing / offshore activities • Vertical enterprise software markets in a huge growth: • Health • Education • E-government • Logistics • Lot of opportunities as banks are renewing their systems often done in- house • Risk management software • Card management systems • A high number of people without a bank account => how to serve them • Recent and planned roll-outs of 3G networks open up opportunities • Content and applications should have a local flavour (sports, social media, chat, music) • Applications for logistics, tourism, agriculture and education and health • Content management systems, middleware • Technical know-how at a good level in Tunisia and in Morocco • Still lacking high level project management skills
  32. 32. What next? 32© Finpro Fact finding trip Test Drive Partner search Finpro at your service • Get direct feedback for your offering • Understand the concrete market potential • Start discussing with potential clients • Local partner is a “must” for a successful business • Find right partners • Have smooth start for your business • Fact-finding trip in Tunisia and Morocco in March 2012 • Seminar, B2B-meetings, networking • You can either participate in one or two countries • Office in Tunis covering Maghreb • Finpro Tunisia supported by Finpro Trade Centres in Southern Europe
  33. 33. Contact information 27/10/2011 33© Finpro • 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 98 358 392