etransform africa: local ict
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Local ICT sector review
Transformation-Ready: The Strategic Application of
Information and Communication Technologies in
Africa (eTransform Africa)
Discussion
document for 28-
30 June 2011
working sessions
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
Geographic focus
page 2
Democratic
Republic of
Congo
Central African Republic
Côte d' Ivoire
Cameroon
Djibouti
Algeria
Egypt West Sahara
Eritrea
Ethiopia
Gibraltar
Equatorial Guinea
Guinea-Bissau
Kenya
Libya
Morocco
Mauritania
Niger
Nigeria
Sudan
Sierra Leone
Senegal
Somalia
Sao Tome and Principe
Chad
Tunisia
Uganda
Angola
Burundi
Botswana
Rep. Congo
Gabon
Gambia
Guinea
Lesotho
Mada-
gascar
Malawi
Mozambique
Namibia
Rwanda
Swaziland
Tanzania
South Africa
Zambia
Zimbabwe
Benin
Liberia
Comoros
Seychelles
Mayotte
Burkina Faso
Mali
Togo
Ghana
Focus countries
Morocco
Nigeria
Kenya
Focus companies
Casablanca
Technopark
Paga
Virtual City
Illustrative hierarchy for discussion
page 3
ICT infrastructure
Accessibility
Environment
ICT hub
Content development
ICT enabled private sector
Content export
BPO
Methodology - leveraging Hierarchy of ICT needs
Framework Structured ratings
process
Data and insights
• Interviews with ~75
organizations in three
target countries
• Desk based research
• Deep dive case studies
ICT
enabled
private
sector
1 2 3 4 5
Reach of
banking
Use of
tech by
SMEs
Banked
population less
than 30%
(mainstream
banks and
alternative
channels)
Banked
population is
30% to 50% of
total population
(mainstream
banks and
alternative
channels)
Banked
population is
50% to 70% of
total population
(mainstream
banks and
alternative
channels)
Banked
population is
70% to 80% of
total population
(mainstream
banks and
alternative
channels)
Banked
population is
greater than
80% of total
population
(mainstream
banks and
alternative
channels)
Most
transactions,
inventory,
accounting,
logistics, and
payroll
completed
manually
Most
transactions
inventory,
accounting,
logistics, and
payroll
completed
manually with
some use of
spreadsheets
and POS
systems
Transactions,
inventory,
accounting,
logistics, and
payroll
completed using
spreadsheets
with some use of
database and
ERP/ POS
functionality
Transactions,
inventory,
accounting,
logistics, and
payroll
completed using
POS and ERP
systems that are
not fully
integrated
Transactions,
inventory,
accounting,
logistics, and
payroll
completed using
POS and ERP
systems that are
fully integrated
Example classification: ICT hierarchy classification (ICT
enabled private sector, 4/8)
page 4
Hierarchy of ICT Needs: Kenya
Hierarchy of ICT Needs: Kenya
page 5
Illustrative quote:
“Game changing innovations and wealth comes from solving
problems…Africa has a lot of problems” – Kenyan ICT expert
Roadblocks Pathways
Lower cost of failure through fellowships and business
development programs: De-couple business and personal
success
1
2
Small pool of qualified young tech graduates: Limits
pool of talent to enable scale in existing companies,
reduces likelihood of breakout tech entrepreneurial
ventures
Examples of success as a motivator: Raise profile of tech
successes in Kenya, continue to attract high value competitions
to make income generation potential of tech tangible
Additional rigor of university level ICT programs: International
standards applied to University technology curricula
High cost to entrepreneurship: Reduces tendency of
talent to move into young innovative ventures 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
3
Low perception of quality and trust in Kenyan
businesses: Kenyan businesses must be “that much
better” to succeed, limits tendency to execute large,
outside of network, initiatives
Conduct joint initiatives with local companies and
encourage partnerships with international bodies: Boost
credibility through partnerships
Implement counterparty verification: Objective assessment of
risk of doing business with reviewed counterparties
4
Limited exposure to foreign innovations and
markets: Few beyond Diaspora benefiting from
innovations developed elsewhere and bringing
international perspective
Increase pathways to foreign exposure: Support efforts to
introduce foreign experts to Kenya and vice versa
Unclear government policy and protectionist
tendencies: Strict labor policies reducing ability to do
business internationally and benefit from scale 5
Collaboration with governments to dialog on labor policy:
Initiate conversation between business leaders and government
on specific areas for labor policy improvement
Central policy clearinghouse and interpretation: Develop hub
for dissemination of easily understood policy information
Kenya roadblocks and pathways
page 6
Insights from firms on challenges to growth - Kenya
page 7
Virtual City Mobility solutions provider
focused on supply chain
automation and agriculture
management. Winner of
USD 1M Nokia Growth
Economy Venture
Challenge award.
Wananchi Provider of internet services
and pay TV through Zuku
and SimbaNet to Kenya,
expanding across East
Africa. Funded by East Africa
Capital Partners, ECP,
Oppenheimer, Sarona, and
Liberty Global
KenCall Call center and general BPO
provider serving Africa based
and International clients.
Recently launched M-Kilimo
agriculture advisory services.
Kenya’s first international call
center.
Ob
serv
ations
Insig
hts
• Key to success was to learn from the best and adapt this to the Kenyan market
• Built international credibility by winning international prizes (Nokia and Legatum)
• Cost of data storage and cloud hosting in Kenya raised barriers to startup
• High risk to fraud/theft for Kenyan enterprises that use manual book accounting
• Exposure: Partner with global leaders to develop best practices and credibility
• Infrastructure: Power and data center shortage raises cost of operation
• Transparency: Automation and systems critical to limit corruption and increase
international credibility of Kenyan companies
Ob
serv
ations
Insig
hts
• Zuku retail offering catering to more affluent reliability sensitive market
• Wananchi experiences a high incidence of wire clipping and other acts of
sabotage/theft of infrastructure that raises their costs (and is passed on to customer)
• Management hired from outside of Kenya, local hires are typically installers/ sales
• Wananchi funded by Africa, North America, and Europe based investors
• Infrastructure: Urban affluent internet provision in Kenya is a maturing market
• Security: Cooperation among rivals and hardware security needed to lower costs
• Staffing: Limited skilled tech managers in Kenyan market, education needed
• Funding: Kenya is becoming an attractive entry point for international investors
Ob
serv
ations
Insig
hts
• Overcame global view of poor quality in Africa by being noticeably better than comps
• Entrepreneurs face high cost and risk due to limited ability to rebound in small market
and cash pressures on customer and supplier sides (high AR days)
• Challenge to serve east African clients (Uganda and Rwanda) due to stringent in-
country labor requirements, not able to recognize scale benefits to specialization
• Exposure: Limited international visibility and scale in African successes raises the
hurdle of success for African business
• High operational costs: Cycle of delayed payments a constraint to young businesses
• Policy: Protectionism within regional group constraining cross-border business
Insights from firms on challenges to growth - Kenya
page 8
Ushahidi Open source data
aggregation and
visualization platform.
Founded by Kenyan
programmers. Serves
users in every inhabited
continent
Rivotek Strategy and
implementation consulting
for business information
systems. Founded by
Kenyan in partnership with
US based company (ENI
Systems.)
Ob
serv
ations
Insig
hts
• Founders able to scale globally because each came from a different geography and
industry so they brought a diversity of “spheres” to the business
• High incidence of family and relationship based initiatives due partially to trust issues
• Most users and information suppliers are young
• Exposure: Scale initiatives most likely from leaders with international exposure
• Education/Security: Counterparty verification and objective certifications needed to
enable more transactional and ICT enabled partnerships
• Education: Younger population driving adoption, role for education to advance use O
bserv
ations
Insig
hts
• Most purchase decisions for ERP software driven by regulatory mandate/compliance,
IT managers in company, and western educated managers
• Decision to purchase an ERP system more common for scale companies
• Some small Kenyan companies resistant to transparency that comes with ICT
• Exposure: Managers exposed to global businesses more likely to integrate ICT
• Policy: Compliance need has high potential to drive a sea change in ICT adoption
• Transparency: ERP system integration enables enterprises to scale while lowering
the risk of corruption/theft away from the hub
Case Study: Virtual City- Overview
Services
Overview: Logistics and agriculture management
application (app) developer at the intersection of fixed and
mobile devices
Evolution: Founded in 2000 as an online shopping
destination then shifted into mobile phone solution
development
Funding: Funded by founders and international innovation
award winnings (USD 1M Nokia Innovation prize and USD
50K Legatum Pioneers of Prosperity prize)
Users: Serves large multi-national corporation clients (Ex.
Coca Cola), moving in to retail/shop keeper market in Q3
2011 by leveraging learnings from larger clients
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
• Sales Managr- App for mobile sales management (order taking,
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)
Agriculture
• Agrimanagr- App to manage weighing, grading, and receipting
of farm products. Enables supplier payment using cashless
transactions and tracks/ rewards loyal customers and suppliers
Enterprise Resource Planning
• Microsoft Dynamics CRM- Licensed to automate sales process
• Other field to HQ templates- Auditr (survey market), Plannr
(event management), Contactr/Membr (track/message contacts)
Governance/ Non Profit:
• Electr- Vote tallying and elections process automation app
• Grantr- Grant management and budgeting system
QuickTime™ and aTIFF (Uncompressed) decompressor
are needed to see this picture.
page 9
Case Study: Virtual City- Contributions to scale ICT
Enables enterprise transparency
and fraud reduction via
automation
• Supply chain transparency throughout route reduces theft: More
visibility into point and timing of theft or fraudulent activity
• Visibility from supply chain to books boosts credibility: Increases
difficulty of shadow accounting and manual adjustments to accounts
Uses mobile gateway to extend
enterprise grade solutions to
small shop keepers
• Mobile phone based accounting and stock management is
accessible at a low cost and literacy threshold: Reduces waste in
system via real time stock adjustments and price transparency
• Learnings from MNCs leveraged in retail product: Extends best
practices to through the value chain to distributors
Extends learnings from exposure
to international markets to
provide tailored solutions
• Localization of technology via extrapolation to mobile platform:
Rebuilds existing solutions for mobile device deployment to enable
greater utilization in East Africa
• Serves as interface between Kenya/world: Exposure via competitions
gives international community a view into innovative Africa
Challenges
• 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
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
Hierarchy of ICT Needs: Nigeria
Hierarchy of ICT Needs: Nigeria
page 11
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
Roadblocks Pathways
International leadership enabler: Mix of domestic and foreign
managers, advisors, and directors
1
2
Low digital literacy: Constrains ICT adoption and
innovation at consumer and commercial levels
Mobile phones as digital gateway: Increased access to smart
phones, mobile enabled web pages, mobile as information portal,
mobile application monetization
ICT education: Increased access to ICT in schools, dedicated
training for students and business owners
Lack of exposure to external markets, few domestic
forums: Reduces visibility into new technology and
scale of business
Exposure as a two way street: Expert exchange and learning
trips, in country forums and incubators
3 High barriers to business development: Little early
stage capital, high cost of operation, high cost of failure
Investment rather than aid: Low returns to early stage venture
in Nigeria, but necessary for growth
Operating cost parity: Support for high cost of power,
connectivity, and facilities
4 Limited access to virtual payments: High non-
banked population (80%) and limited means for online
payment limits ability to automate for domestic needs
Mobile money adoption: Support for regulation and
encouragement of mobile money movement
Online tech community portal: Development and networking
tools for African tech stakeholders
Rampant fraud and mistrust: High levels of distrust
within businesses and among partners, strong reliance
on relationships rather than capabilities, international
perception of risk
5
Technology as a fraud reduction tool: Business automation to
enable scale and increase intra business accountability via
transparency
Certification promotion: Objective certifications of ability and
reliability among individuals and businesses to enable non
relationship-based counter party verification
Nigeria roadblocks and pathways
page 12
Insights from firms on challenges to growth
page 13
Adlevo
Capital
USD 52M Growth equity
fund based in Nigeria.
Founded by former Silicon
Valley based tech investor.
Portfolio includes
investment in Interswitch.
Paga Mobile money provider
based in Nigeria. Founded
by former tech and Private
Equity professionals.
Granted provisional license
by the Central Bank of
Nigeria to launch services
in two states.
Ob
serv
ations
Insig
hts
• Principals entered the market to invest in innovative platforms but found only a few
truly innovative companies, and even fewer with proven technology and revenue
• Tech entrepreneurs mostly clustered in web design and portal development
• Very little technology observed in schools (even at University level)
• Education: Investment in education and research engines needed to develop
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)
Ob
serv
ations
Insig
hts
• Paga pays USD 800 per week for a generator (power redundancy), major telecoms
providers must place generators and security at each tower deployed in Nigeria
• The top developers at Paga are in very high demand and are in high demand
• Infrastructure/ Cost of operation/ Policy: Power inconsistency and security
requirements for business in Nigeria suffocating business growth and development
• Education: In Nigeria a premium is placed on the developers that were able to get
enterprise grade education, this typically came from international exposure
Insights from firms on challenges to growth
page 14
Mobitel Broadband service
provider based in Nigeria.
Led by Nigerian born
telecoms professionals.
Awarded national license
for 2.3 GHz frequency in
2010
Iroko
Partners Digital entertainment
provider based in Nigeria.
Founded by UK trained
Nigerian. Largest owner of
Nollywood movie rights
and one of the largest
Google partners in Africa
Ob
serv
ations
Insig
hts
• There is very little tertiary cable installed in rural areas, mobile phones largely used
for internet connectivity outside of major urban centers
• Six government ministries were successfully linked via an automated system, this
resulted in the exposure of payroll fraud and resulted in cost savings for the country
• Infrastructure: The gap between rural and urban infrastructure limits potential for
traditional ICT in rural areas, but there is opportunity in building mobile capabilities
• Policy: With government backing (this is currently lacking), huge successes in
transparency and efficiency are possible in Nigeria
Ob
serv
ations
Insig
hts
• By digitalizing and streaming Nollywood content on YouTube, Iroko reduced piracy
based views, distributed internationally, and developed a new revenue stream
• Internet and power is majority of Iroko expense despite labor intensity of business
• Producers only accept cash payment, have mistrust of profit sharing and equity
• Adoption: Socially driven online offerings serve as a gateway for ICT
• Exposure: There is an international appetite for Nigeria developed content
• Infrastructure: Power inconsistency and cost constraints almost every business
• Education: Potential to reduce mistrust of technology and counterparties
Case Study: Paga- Overview
Services
Overview: Platform agnostic mobile payments provider in
Nigeria, distribution is via Paga Stars agent network
(target to bring on 5,000 agents by Q3 2011)
Evolution: Founded in 2009, provisional launch in 2011
as part of Central Bank of Nigeria trial
Funding: Funded by founders, venture capital (Tim
Draper-US), and Goodwell West Africa Microfinance
(Goodwell Investments & Alitheia Capital)
Users: 9,000 unique users as of early 2011 (just post
launch under provisional license.) Target to register 15M
active users and reach 40M Nigerians (3 dependents for
every customer reached)
• 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 Paga
Nigeria Mobile Payments Context
• 16 providers at various stages of development/funding issued
provisional licenses by the Central Bank of Nigeria in January 2011
• Central Bank of Nigeria expected to issue permanent licenses to
four mobile payments providers in May 2011, this has since been
pushed back to an unspecified date to allow more time for providers
to test their networks
• Unofficial feedback from the market is that Paga is the most
technically competent provider, however other providers have
stronger relationships in government
page 15
Case Study: Paga- Contributions to scale ICT
Lowers counterparty risk via
secure and convenient
transactions
• Security via lower dependence on cash and greater transparency:
Limits upside to theft and enables payers to track expenses
• Transaction convenience via instant payment: Enables commerce
across distances, accurate money transfer, and fast transaction time
Extends alternative financial
services to the “un-banked”
• Gateway for banking services: Initial payment service mimics current
activity, serves as a stepping stone towards greater utilization of
financial services (lending, savings, investment)
• Greater visibility into consumer needs: Increased data availability
Extends opportunities in
eCommerce down the pyramid
• Online/mobile payments democratize eCommerce: Pushes access
to the 80-90% of Nigerians that are not banked
• Opens up new customer base to online vendors: Expands
addressable market size for vendors (increases value of online assets)
Challenges
• 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)
• 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
Hierarchy of ICT Needs: Morocco
Hierarchy of ICT Needs: Morocco
page 17
Illustrative quote:
“We don’t compare ourselves to the rest of Africa, we compare
ourselves to the rest of the World” – Moroccan ICT expert
Roadblocks Pathways
1
2
Limited exposure to sub-Saharan Africa: Limits
extent to which Morocco serves as a continental leader
and scope of market access for domestic tech
companies
Knowledge exchange events in sub-Saharan Africa: Use
education as a means to open up markets and support other
African countries International partnerships and engagement in continental
symposiums: Leverage opportunities for in person meetings with
potential partners
Lack of research and development
commercialization: Top talent largely in Universities
with limited ability to commercialize technology
Lower barriers to University researcher participation in
upside to commercialization: Leverage Silicon Valley and
Israel models to tech research acceleration
3
Opportunity for greater exposure of top technology
talent to non-Africa innovation hubs: Current
exchange programs limited to only a few participants
(ex. Only 20 in South Korea exchange)
Expand exchange programs to include greater diversity of
Morocco (age and sector) and increase number of people
who are able to attend
4
Limited utilization of technology by broad
population beyond basic services: Adoption in
schools still in transition period with some push-back
from teachers. Few popular organically developed
websites. Limited use of mobile and purely online
payments.
Increase familiarity with technology at a young age: Provide
continued support to educational initiatives (ICT as a right not a
privilege)
Provide greater support to very young, innovative
companies: Offer stepping stone incubators to support
companies not yet prepared to enter techno-parks
Morocco roadblocks and pathways
page 18
Insights from firms on challenges to growth - Morocco
page 19
Casablanca Technopark
Provider of space, education,
and back office services for
~150 Casablanca based tech
companies. Founded by
Ministry of Commerce,
Industry and ICT
Al Akhawayn University
Independent University that
offers research and technology
focused concentrations.
Funded by King Fahd of Saudi
and King Hassan II of Morocco.
Has an annex in the
Casablanca Technopark
Rabat Technopolis
Science park for engineering,
high tech, education, and
R&D focused enterprises.
Founded by the government
of Morocco.
Ob
serv
ations
Insig
hts
• Businesses in the Technopark benefit from co-located travel services, printing, health
services, and postal services; also benefit from shared utilities, insurance, and space
• Visible examples of success emerged from the Technopark. Ex: First Mile Telecom,
Arcanes Technologies, Mobilinfo, Al Hambra Design, and Axentis Group
• Co-location of businesses has enabled collaboration among “residents”
• High operational costs: Shared spaces/incubators lower cost of operation
• Exposure/Education: More youth likely to pursue technology when there is high
awareness of upside of a tech career and spaces to explore the interest
• Networks: Domestic proximity of companies enables scale through collaboration
Ob
serv
ations
Insig
hts
• Classes are taught in English and international exchange programs are part of the
curriculum, students show a facility with interaction with foreigners
• Executive program annex located in the Casablanca Technopark among medium and
small enterprises
• Exposure: Interaction and experiences abroad at a young age encourages global
collaboration and scale in the future
• Education: Proximity to corporations enables more tailored education and increases
the likelihood that tech managers will pursue advanced skills training
Ob
serv
ations
Insig
hts
• 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:
Nemotech Technologie, EDS-HP, Cleanroom, and Alcatel
• Networks: Clear external communication of capabilities and co-location of
complimentary initiatives enables greater collaboration
• Exposure: Visibility of success stories and proximity of domestic companies to
international leaders raises profile of local companies and boosts knowledge sharing
Case Study: Casablanca Technopark- Overview
Services
Overview: Provider of clustered space, education, and
services for technology focused small and medium sized
enterprises
Evolution: Founded in 2001, supervised by the Ministry of
Commerce, Industry and ICT
Funding: 65% of funding from private Moroccan banks
(AttijariWafa Bank, BMCE Bank, La Banque Centrale
Populaire, Banque Commerciale du Maroc, La Caisse de
Depot et de Gestion); 35% funded by the Moroccan
government
Users: ~170 small and medium sized technology focused
enterprises (PME), some satellite government offices
(customs, tech), executive education program of Al
Akhawayn University
• 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 entrepreneurship
• Community events: offers annual events outside of Casablanca
(Oujda, Meknes, and Agadir) to extend discussion of technology
across the country
Sample Residents
• Innosoft
• ThinLine
• Vigeo Group
• Isis Market
• Bull Maroc
• Axentis Group
• Parnet
• Intechno
• Just Ask
• Techma Maroc
• Al Akhawayn University
• Arcanes Technologies
• Synergy Formation
• Netcom Technologies
• Wind International
• Prima Group Afrique
• IT Skills Services
• P2P Solutions
• XPI (Expanded Payment)
• Irsal Solution
• Kosinux
• FTZ Maroc
• ArtMag
• Amexs
• Algortech
• Geoconseil
• Infoone
• Adelo Services
• Willnet
page 20
Case Study: Casablanca Technopark- Contributions
to scale ICT
Lowers the risk and cost of doing
business
• Shared services: Utilities, travel, printing, facility administration,
connectivity, security, and information
• Co-located enabling functions: Post office, travel agency, health
services, fidelity card, and web presence services
Provides education and exposure
• Central venue for education: Three classroom spaces used by
residents and outside organizations for tech education
• International tech event organization and knowledge sharing:
Venue for startup weekend, offers national education with Numeric
Facilitates collaboration with
other PMEs and MNCs
• Grouping and social events for residents: Collaboration and
knowledge share fostered via resident diversity and grouping
• Proximity to MNCs and Offshoring hubs: Location near tech MNC’s,
Casa Nearshore, and airport lowers barriers to access for PMEs
Challenges
• Services for very early stage startups: Limited tools for very small
companies (TPEs), activities confined to one off events
• R&D hub partnerships for commercialization: Limited partnership
with one university, opportunity to become more of an R&D hub
page 21
page 22
Common continental challenges
Democratic
Republic of
Congo
Central African Republic
Côte d' Ivoire
Cameroon
Djibouti
Algeria
Egypt West Sahara
Eritrea
Ethiopia
Gibraltar
Equatorial Guinea
Guinea-Bissau
Kenya
Libya
Morocco
Mauritania
Niger
Nigeria
Sudan
Sierra Leone
Senegal
Somalia
Sao Tome and Principe
Chad
Tunisia
Uganda
Angola
Burundi
Botswana
Rep. Congo
Gabon
Gambia
Guinea
Lesotho
Mada-
gascar
Malawi
Mozambique
Namibia
Rwanda
Swaziland
Tanzania
South Africa
Zambia
Zimbabwe
Benin
Liberia
Comoros
Seychelles
Mayotte
Burkina Faso
Mali
Togo
Ghana
Infrastructure consistency (high cost of operation)
Exposure lacking (international and domestic)
Digital literacy lacking
Cost of hardware high, mobile as a gateway
Fraud and transparency limiting credibility
• 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
• International exposure: leaders of most firms that scale have international
education/exposure. Need exposure to innovations, markets, and funders
• Domestic exposure: in relationship based societies, tech pros least connected
• Pathways: expert exchange, international competitions/challenges, forums
• Addressable market small: consumers not able to adopt advanced applications of
ICT without understanding, this shrinks the ICT market
• Staffing a challenge for ICT firms: top talent expensive, trend to hire from intl.
• Pathways: digital literacy in public education, subsidized forums, certifications
• 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
• 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
Next steps
page 23
• 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
APPENDIX
page 24
ICT
Infrastru
cture
1 2 3 4 5
Utilities
Internet
Infra-
structure
Security
Daily power
interruptions,
high cost to
consistency
Weekly power
interruptions,
relatively high
cost to
consistency
Monthly power
interruptions,
some cost to
consistency
Very few power
interruptions,
availability in line
with demand
Very few power
interruptions,
supply above
demand
Access only via
satellite
technology
Cable access
with less than 1
Tb/s capacity
Cable access
with less than 5
Tb/s capacity
Cable access
with less than 10
Tb/s capacity,
and more than
three carriers
Cable access
with greater than
10 Tb/s capacity,
and more than
three carriers
Infrastructure
subject to theft
or sabotage to a
point that
development is
prohibitively
expensive
Infrastructure
subject to theft
or sabotage to a
point where
development is
expensive
Infrastructure
under realistic
threat of theft or
sabotage
Infrastructure
relatively safe,
not vulnerable
Infrastructure not
vulnerable to
threats of theft or
sabotage
Appendix: ICT hierarchy classification (Infrastructure, 1/8)
page 25
Environ
ment
1 2 3 4 5
Level of
govern-
ment
support
for ICT
Educ-
ation
Demo-
graphic
consider-
ations
Dedicated
agency for ICT
regulation and
implementation
National strategy
in place with
support from
ministry and
broader federal
government
Funded national
strategy for ICT
with broad
federal support
Execution of
national strategy
and partnerships
with local ICT
Execution of
successful
national strategy
and partnerships
with local ICT
Low level of
broad based
education (less
than 4 years
mean schooling),
no access to ICT
in public schools
Moderate level
of broad based
education (4-6
years mean
schooling), no
access to ICT in
public schools
Moderate level
of broad based
education (6-8
years mean
schooling), some
access to ICT in
public schools
High level of
broad based
education (8+
years mean
schooling),
access to ICT
and some digital
literacy training
in public schools
High level of
broad based
education, digital
literacy training
the norm for
students in
public schools,
ICT integrated
into instruction
GDP per capita
< USD 1,500
GDP per capita
< USD 3,000
GDP per capita
< USD 10,000
GDP per capita
> USD 10,000,
urban population
< 50%
GDP per capita
> USD 10,000,
urban population
> 50%
Appendix: ICT hierarchy classification (Environment, 2/8)
page 26
Accessi
bility
1 2 3 4 5
Shared
technol-
ogy
services
Negligible
access to shared
technology in
schools, public
spaces, or
private
enterprises
Some access to
shared
technology via
schools, public
spaces, or
private
enterprises (ex.
Internet cafes)
High access to
shared
technology via
schools, public
spaces, or
private
enterprises (ex.
Internet cafes)
that is expensive
High access to
shared
technology via
schools, public
spaces, or
private
enterprises (ex.
Internet cafes)
that is
inexpensive
High access to
shared
technology via
schools, public
spaces, or
private
enterprises (ex.
Internet cafes)
that is
inexpensive and
reliable
Appendix: ICT hierarchy classification (Accessibility, 3/8)
Mobile
phones
Internet
Internet
penetration
< 15%
Internet
penetration
< 30%
Internet
penetration
< 50%
Internet
penetration
< 75%
Internet
penetration
> 75%
Mobile
penetration
< 15%
Mobile
penetration
< 30%
Mobile
penetration
<50%
Mobile
penetration
<75%
Mobile
penetration
> 75%
page 27
ICT
enabled
private
sector
1 2 3 4 5
Reach of
banking
Use of
tech by
SMEs
Banked
population less
than 30%
(mainstream
banks and
alternative
channels)
Banked
population is
30% to 50% of
total population
(mainstream
banks and
alternative
channels)
Banked
population is
50% to 70% of
total population
(mainstream
banks and
alternative
channels)
Banked
population is
70% to 80% of
total population
(mainstream
banks and
alternative
channels)
Banked
population is
greater than
80% of total
population
(mainstream
banks and
alternative
channels)
Most
transactions,
inventory,
accounting,
logistics, and
payroll
completed
manually
Most
transactions
inventory,
accounting,
logistics, and
payroll
completed
manually with
some use of
spreadsheets
and POS
systems
Transactions,
inventory,
accounting,
logistics, and
payroll
completed using
spreadsheets
with some use of
database and
ERP/ POS
functionality
Transactions,
inventory,
accounting,
logistics, and
payroll
completed using
POS and ERP
systems that are
not fully
integrated
Transactions,
inventory,
accounting,
logistics, and
payroll
completed using
POS and ERP
systems that are
fully integrated
Appendix: ICT hierarchy classification (ICT enabled private
sector, 4/8)
page 28
Content
develop-
ment
1 2 3 4 5
Domestic
website
develop-
ment
Domestic
content
output
Domestic
innovation
Very few
developers,
0 domestically
developed
websites in top
20 sites
Some web
developers,
at least 3
domestically
developed
websites in top
20 sites
Many web
developers,
at least 2
domestically
developed
website in top 10
sites
Many web
developers, at
least 4
domestically
developed
website in top 10
sites
Many web
developers, at
least 1
domestically
developed
websites in the
global top 20
sites
Largely informal
content output,
little use of the
internet to
disseminate
information
Largely informal
content output,
high use of
forums, blogs,
and social
networking sites
to disseminate
information
Some reliable
formal content
output through
dedicated
channels
High output and
reliability of
formal content
via dedicated
channels
High output and
reliability of
formal content
via dedicated
channels for
international
audiences
Little innovation
in software and
hardware, high
dependency on
platforms
developed
internationally
Some innovation
in software and
hardware, high
dependency on
platforms
developed
internationally
High innovation
in software and
hardware, some
dependency on
platforms
developed
internationally
High innovation
in software and
hardware, low
dependency on
platforms
developed
internationally
High innovation,
domestically
produced
platforms
develop for
international
audiences
Appendix: ICT hierarchy classification (content development,
5/8)
page 29
Content
export
1 2 3 4 5
Global
use of
inno-
vations
from
country
Negligible
international
consumption of
domestically
developed
innovations
Some
international
consumption of
domestically
developed
innovations,
largely focused
on content rather
than platforms
Some
international
consumption of
domestically
developed
innovations,
focused on
platforms and
content
to consistency
Moderate
international
consumption of
domestically
developed
innovations,
focused on
platforms and
content
High
international
consumption of
domestically
developed
innovations,
focused on
platforms and
content
Appendix: ICT hierarchy classification (content export, 6/8)
page 30
BPO
1 2 3 4 5
Speciali-
zation of
tech
enabled
functions
Destina-
tion as a
special-
ized
global
provider
Negligible
specialization of
business
functions
Some
specialization of
business
functions, largely
isolated to one-
off projects
Moderate
specialization of
business
functions,
including
outsourced ICT
advisory, and
administrative
functions
High
specialization of
business
functions,
including
outsourced ICT
advisory,
external support
of logistics, and
administrative
functions
Level 4 AND
customer
communications,
and consistent
engagement with
external experts
on business
processes
Negligible BPO
service provision
to international
companies
Moderate BPO
service provision
to international
companies, but
highly
fragmented
Moderate BPO
service provision
to international
companies,
some off shoring
clusters, typically
a secondary
source for
international
companies
High BPO
service provision
to international
companies,
some off shoring
clusters, a
primary source
for some
international
companies
High BPO
service provision
to international
companies,
several off
shoring hubs, a
primary source
for many
international
companies
Appendix: ICT hierarchy classification (BPO, 7/8)
page 31
ICT hub
1 2 3 4 5
Appendix: ICT hierarchy classification (ICT hub, 8/8)
Global
desti-
nation
for R&D
HQ
location
for scale
tech
comp-
anies
Global
leader
Negligible tech-
focused research
and development
in country
Some tech-
focused research
and development
in country, little
means for
commercialization
Moderate tech0
focused research
and development
in country,
moderate
commercialization
High tech-
focused research
and development
in country, high
commercialization
High tech-focused
research and
development in
country, high
export of research
and development
to global markets
No scale tech
businesses in
country (> USD
20M turnover)
Less than 5
scale technology
businesses in
country
More than 5
scale technology
businesses in
country
More than 5
scale tech
businesses, total
turnover of all
technology
companies
greater than
USD 5 Bn
More than 5
scale tech
businesses in
country, total
turnover of tech
companies >
USD 8Bn
Negligible
international
recognition as a
tech innovator
Some
international
recognition as a
tech innovator,
largely via
commercial
success
Moderate
international
recognition as a
tech innovator,
via commercial
and innovation
success
High international
recognition as a
tech innovator,
via commercial
and innovation
success
High global
recognition as a
tech innovator,
via commercial
and innovation
success. High
knowledge
sharing
page 32