This document discusses the role of information and communication technologies (ICT) in promoting economic development and foreign direct investment (FDI) in Africa. It notes that Africa's economy is projected to grow significantly by 2050 and that ICT can accelerate this growth. Broadband internet in particular is seen as critical for enabling knowledge-based economies and making countries more competitive. The document advocates for governments to develop ICT roadmaps to optimize private and public investment in infrastructure and services. It also discusses regulatory reforms and funding models to encourage broadband expansion. Overall, the document argues that ICT, especially broadband, can be an important catalyst for economic growth and attracting FDI to African countries.

1. Economic Development and FDI in the African
continent : the ICT contribution
TELECOM ITALIA GROUP
Pier Alberto Caponera
Hammamet, September 24th 2014
Panel Speech

2. Agenda
 Economic Development and FDI in the African continent
 ICT as an Accelerator of growth
 The importance of Broadband
 The relevance of «adequate» solutions
 ICT Roadmaps
 Regulatory and Financial Issues
 Importance of good advice to Governments

3. 3Economic Development and FDI in the African continent : the ICT contribution
Economic Development and FDI in the African continent
- Africa may be going from a $2 trillion economy as of today to a $29 trillion economy by 2050;
which means: bigger than Europe and America put together (in today's money);
- Life expectancy is going to go up by 13 years. The population's going to double from one billion to
two billion;
- Household incomes are going to go up sevenfold in the next 35 years.
- Foreign Direct Investments (FDI) have been pouring into Africa in the last 15 years;
- This growth is partly demographic-led;
- Higher level of education is helping growth and investments.

4. 4
Economic Development and FDI in the African continent
- ICTs as accelerator of growth;
- Technology does help: i.e. download African literature from the internet, purchase tunes, African
products, go on holiday, invest;
- ICTs enable the development of skills which favor faster growth of companies and activities;
- ICTs - along with the availability of high-speed, reliable, and reasonably priced Internet access - is a
key determinant in FDI decisions.
Economic Development and FDI in the African continent : the ICT contribution
Emmanuele Carboni

5. 5
Economic Development and FDI in the African continent
- Within ICTs, Broadband Internet is critical in fostering sustainable economic development :
- Transition to a knowledge-based economy;
- Conditions for a more modern and competitive economy;
- Democracy and Social Transformation;
- FDI decisions
Economic Development and FDI in the African continent : the ICT contribution
Broadband has pervasive productivity impact on:
- energy (smart grids), water, industrial production, services, transport;
- health, education, red tape reduction, which means more transparency and quicker delivery...

6. 6
Economic Development and FDI in the African continent
- The relevance of «adequate» (best fit) solutions;
- Technical solutions and models will need to be carefully studied;
- A mix of technologies is often the best solution to fulfill ambitious national broadband targets;
- A good Backbone Network policy must be placed in the context of the overall broadband policy for
each country;
- ‘Holistic’ approach to an adequate development of domestic Broadband Network is required.
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Economic Development and FDI in the African continent : the ICT contribution

7. 7
Economic Development and FDI in the African continent
- Importance of ICTs Roadmaps;
- Governments should design ICT roadmaps where high level goals and services /
infrastructure needs are defined, in order to achieve the highest results through the
optimization of private and public funds;
- Such Roadmap would be public and open for contributions from all the relevant players.
Economic Development and FDI in the African continent : the ICT contribution

8. 8
Economic Development and FDI in the African continent
Regulatory Issues :
- Removing limits on the number of network licenses;
- Removing constraints on the type of infrastructure that licensees are allowed to build;
- Removing constraints on the type of services that licensees are allowed to offer;
- Encouraging entry of alternative infrastructure providers (getting “private sector” involved).
Funding/Investment Solutions:
- Experimented models (i.e. “Clawback” mechanisms already adopted within the EU);
- New Solutions, adequately adjusted to specific characteristic of the country.
Economic Development and FDI in the African continent : the ICT contribution

9. 9
Economic Development and FDI in the African continent
A good advice from “neutral” experts can help adopt the “best fit” model, in order to:
- Define an ICT Roadmap, from Optical Fiber Infrastructure up to Citizen Services, including
evaluating appropriate forms of public and private cooperation (example ‘clawback model’);
- Support or partner with local players to design and manage their ICT infrastructure and services for
the Public Sector (e-government) and large enterprises (ex. Data Centers, Private Networks);
- Design and Operate public national broadband networks, also through Joint Venturing with local
partners and leveraging on Network Operating Centers.
Economic Development and FDI in the African continent : the ICT contribution