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Why africa for ict


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

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Why africa for ict

  1. 1. Presenters:Prince Ellis & Waithera Murache  
  2. 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. 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.
  4. 4.  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
  5. 5.  New roads, airports, power plants and communication networks projects NewInitiatives by African Leaders o Programme for infrastructure development in Africa (PIDA)
  6. 6.  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.
  7. 7.  Mobile money is Africa’s fastest growing VAS service. Expected to spread to the rest of Africa within the next five years
  8. 8.  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
  9. 9.  Increase in e-Government platforms including web, and mobile devices. Helping to build countrywide digital cities Provide citizens with access to Government data online
  10. 10.  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.
  11. 11.  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.
  12. 12.  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.
  13. 13.  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.
  14. 14.  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
  15. 15.  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
  16. 16. 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)
  17. 17. 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.
  18. 18. Mobile Penetration in Kenya
  19. 19. Internet Penetration Kenya
  20. 20. 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.
  21. 21. 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
  22. 22. 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
  23. 23.  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.
  24. 24.  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.
  25. 25.  ICT facilities available and accessible for teachers
  26. 26.  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.
  27. 27.  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.
  28. 28.  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.
  29. 29. Primary school Computer Class
  30. 30. High School Computer Class
  31. 31. Tertiary Education IT Lecture
  32. 32. Tertiary Education Session
  33. 33.  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.
  34. 34. Courtesy:Kenya Data Networks
  35. 35.  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 kilometresCourtesy:Communications Commission of Kenya (CCK)
  36. 36.  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 facilitation2. 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.
  37. 37. 3. Kenyas relation with the global information infrastructure Kenya is an active member of the International Telecommunications Union (ITU), and other international conventions and standards4. Diversified experience Kenyans are involved in diverse areas of ICT and the extensiveness of industry players demonstrates this
  38. 38. 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
  39. 39. 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
  40. 40. 7. Investment InsuranceThis provides potential investors with insurance for theirinvestment in Kenya against a wide range of non-commercial risks.8. Strategic locationLocated on the East African coast and having the port ofMombasa, Kenya is strategically located for investorswanting to access the East and Central African market.
  41. 41.
  42. 42.  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
  43. 43.  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
  44. 44.  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
  45. 45. Total deposits have been growing steadily over the period, a clear indication that thedemand for the mobile money transfer service has continued to expand.
  46. 46.  M-PESA revenues grew by 43 per cent to Ksh. 16.9 Billion - 78 per cent of Safaricoms 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.
  47. 47.  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,
  48. 48. The master plan for the 2,000 hectare city is based onsuccessful new town projects around the world put together byan international team of experts, drawing on best practice fromplaces such as the UK, China and Brazil. The city plan is after the mythical Atlantis
  49. 49.  Konza City will be a techno city with : BPO Techno Park Central Business District Science Park University Campus
  50. 50.  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.
  51. 51.  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
  52. 52.  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.
  53. 53. 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, pyrethrumMajor Trading Partners: Exports - Kenya, DemocraticRepublic of Congo, China, Swaziland, US, Pakistan(2010)Imports - Kenya, Uganda, UAE, Tanzania, China(2010)Exchange Rate: Rwanda Franc 607.2 = $1 (2011 est.).
  54. 54.  Rwanda Development vision is to transform Rwanda into a knowledge-based economy .
  55. 55.  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
  56. 56. 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).
  57. 57.  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.
  58. 58. Government Investment of 24 million dollars worth offibre 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
  59. 59. Computerization of education all the way from elementary levelRwanda is right on course for its vision 2020 to become aprosperous, knowledge based economy.
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  61. 61.  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.