1. Local ICT sector review Discussion
document for 28-
Transformation-Ready: The Strategic Application of 30 June 2011
Information and Communication Technologies in working sessions
Africa (eTransform Africa)

2. 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

3. Geographic focus
Focus countries Focus companies
Morocco Gibraltar
Casablanca
Technopark
Tunisia
Morocco
Algeria
Egypt
West Sahara Libya
Mauritania
Eritrea
Niger
Mali
Senegal
Chad
Burkina Faso
Gambia
Sudan Djibouti
Guinea-Bissau
Nigeria Sierra Leone
Guinea
Côte d' Ivoire
Ghana
Nigeria
Central African Republic
Ethiopia
Somalia
Paga
Liberia
Togo Cameroon
Benin
Equatorial Guinea
Uganda Kenya
Gabon Democratic
Republic of
Congo
Sao Tome and Principe
Rep. Congo
Rwanda
Tanzania
Burundi
Seychelles
Angola
Comoros
Zambia
Mayotte
Zimbabwe Malawi
Kenya Namibia
Botswana
Mozambique
Mada-
gascar
Virtual City
Swaziland
South Africa
Lesotho
page 2

4. Methodology - leveraging Hierarchy of ICT needs
Framework Structured ratings
process
ICT hub
BPO
Content export
Content development
ICT enabled private sector Data and insights
Accessibility • Interviews with ~75
organizations in three
target countries
Environment
• Desk based research
ICT infrastructure
• Deep dive case studies
Illustrative hierarchy for discussion
page 3

5. Example classification: ICT hierarchy classification (ICT
enabled private sector, 4/8)
1 2 3 4 5
Banked Banked Banked Banked Banked
population less population is population is population is population is
than 30% 30% to 50% of 50% to 70% of 70% to 80% of greater than
(mainstream total population total population total population 80% of total
Reach of banks and (mainstream (mainstream (mainstream population
banking alternative banks and banks and banks and (mainstream
channels) alternative alternative alternative banks and
channels) channels) channels) alternative
channels)
ICT
enabled Most Most Transactions, Transactions, Transactions,
private transactions, transactions inventory, inventory, inventory,
sector inventory, inventory, accounting, accounting, accounting,
accounting, accounting, logistics, and logistics, and logistics, and
logistics, and logistics, and payroll payroll payroll
Use of payroll payroll completed using completed using completed using
tech by completed completed spreadsheets POS and ERP POS and ERP
SMEs manually manually with with some use of systems that are systems that are
some use of database and not fully fully integrated
spreadsheets ERP/ POS integrated
and POS functionality
systems
page 4

6. Hierarchy of ICT Needs: Kenya
Hierarchy of ICT Needs: Kenya
Illustrative quote:
“Game changing innovations and wealth comes from solving
problems…Africa has a lot of problems” – Kenyan ICT expert
page 5

7. Kenya roadblocks and pathways
Roadblocks Pathways
Examples of success as a motivator: Raise profile of tech
Small pool of qualified young tech graduates: Limits successes in Kenya, continue to attract high value competitions
pool of talent to enable scale in existing companies, to make income generation potential of tech tangible
1
reduces likelihood of breakout tech entrepreneurial
ventures Additional rigor of university level ICT programs: International
standards applied to University technology curricula
Lower cost of failure through fellowships and business
development programs: De-couple business and personal
High cost to entrepreneurship: Reduces tendency of success
talent to move into young innovative ventures 2
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
Low perception of quality and trust in Kenyan Conduct joint initiatives with local companies and
businesses: Kenyan businesses must be “that much encourage partnerships with international bodies: Boost
3 credibility through partnerships
better” to succeed, limits tendency to execute large,
outside of network, initiatives Implement counterparty verification: Objective assessment of
risk of doing business with reviewed counterparties
Limited exposure to foreign innovations and
markets: Few beyond Diaspora benefiting from Increase pathways to foreign exposure: Support efforts to
4
innovations developed elsewhere and bringing introduce foreign experts to Kenya and vice versa
international perspective
Collaboration with governments to dialog on labor policy:
Unclear government policy and protectionist Initiate conversation between business leaders and government
tendencies: Strict labor policies reducing ability to do 5 on specific areas for labor policy improvement
business internationally and benefit from scale Central policy clearinghouse and interpretation: Develop hub
for dissemination of easily understood policy information
page 6

8. Insights from firms on challenges to growth - Kenya
Observations
• Key to success was to learn from the best and adapt this to the Kenyan market
Virtual City Mobility solutions provider • Built international credibility by winning international prizes (Nokia and Legatum)
focused on supply chain • Cost of data storage and cloud hosting in Kenya raised barriers to startup
automation and agriculture • High risk to fraud/theft for Kenyan enterprises that use manual book accounting
management. Winner of
USD 1M Nokia Growth • Exposure: Partner with global leaders to develop best practices and credibility
Insights
Economy Venture • Infrastructure: Power and data center shortage raises cost of operation
Challenge award. • Transparency: Automation and systems critical to limit corruption and increase
international credibility of Kenyan companies
Observations
• Zuku retail offering catering to more affluent reliability sensitive market
Wananchi Provider of internet services • Wananchi experiences a high incidence of wire clipping and other acts of
and pay TV through Zuku sabotage/theft of infrastructure that raises their costs (and is passed on to customer)
and SimbaNet to Kenya, • Management hired from outside of Kenya, local hires are typically installers/ sales
expanding across East • Wananchi funded by Africa, North America, and Europe based investors
Africa. Funded by East Africa
• Infrastructure: Urban affluent internet provision in Kenya is a maturing market
Insights
Capital Partners, ECP,
• Security: Cooperation among rivals and hardware security needed to lower costs
Oppenheimer, Sarona, and
• Staffing: Limited skilled tech managers in Kenyan market, education needed
Liberty Global
• Funding: Kenya is becoming an attractive entry point for international investors
Observations
• Overcame global view of poor quality in Africa by being noticeably better than comps
KenCall • Entrepreneurs face high cost and risk due to limited ability to rebound in small market
Call center and general BPO
and cash pressures on customer and supplier sides (high AR days)
provider serving Africa based
• Challenge to serve east African clients (Uganda and Rwanda) due to stringent in-
and International clients.
country labor requirements, not able to recognize scale benefits to specialization
Recently launched M-Kilimo
agriculture advisory services. • Exposure: Limited international visibility and scale in African successes raises the
Insights
Kenya’s first international call hurdle of success for African business
center. • High operational costs: Cycle of delayed payments a constraint to young businesses
• Policy: Protectionism within regional group constraining cross-border business
page 7

9. Insights from firms on challenges to growth - Kenya
Observations
• Founders able to scale globally because each came from a different geography and
Ushahidi Open source data industry so they brought a diversity of “spheres” to the business
aggregation and • High incidence of family and relationship based initiatives due partially to trust issues
visualization platform. • Most users and information suppliers are young
Founded by Kenyan
programmers. Serves • Exposure: Scale initiatives most likely from leaders with international exposure
Insights
users in every inhabited • Education/Security: Counterparty verification and objective certifications needed to
continent enable more transactional and ICT enabled partnerships
• Education: Younger population driving adoption, role for education to advance use
Observations
• Most purchase decisions for ERP software driven by regulatory mandate/compliance,
Rivotek Strategy and IT managers in company, and western educated managers
implementation consulting • Decision to purchase an ERP system more common for scale companies
for business information • Some small Kenyan companies resistant to transparency that comes with ICT
systems. Founded by
Kenyan in partnership with • Exposure: Managers exposed to global businesses more likely to integrate ICT
Insights
US based company (ENI • Policy: Compliance need has high potential to drive a sea change in ICT adoption
Systems.) • Transparency: ERP system integration enables enterprises to scale while lowering
the risk of corruption/theft away from the hub
page 8

10. Case Study: Virtual City- Overview
Services
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
QuickTime™ and a • Sales Managr- App for mobile sales management (order taking,
TIFF (Uncompressed) decompressor
are needed to see this picture. 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)
Overview: Logistics and agriculture management
application (app) developer at the intersection of fixed and Agriculture
mobile devices
• Agrimanagr- App to manage weighing, grading, and receipting
Evolution: Founded in 2000 as an online shopping of farm products. Enables supplier payment using cashless
destination then shifted into mobile phone solution transactions and tracks/ rewards loyal customers and suppliers
development
Funding: Funded by founders and international innovation
Enterprise Resource Planning
award winnings (USD 1M Nokia Innovation prize and USD • Microsoft Dynamics CRM- Licensed to automate sales process
50K Legatum Pioneers of Prosperity prize)
• Other field to HQ templates- Auditr (survey market), Plannr
Users: Serves large multi-national corporation clients (Ex.
(event management), Contactr/Membr (track/message contacts)
Coca Cola), moving in to retail/shop keeper market in Q3
2011 by leveraging learnings from larger clients Governance/ Non Profit:
• Electr- Vote tallying and elections process automation app
• Grantr- Grant management and budgeting system
page 9

11. Case Study: Virtual City- Contributions to scale ICT
• Supply chain transparency throughout route reduces theft: More
Enables enterprise transparency visibility into point and timing of theft or fraudulent activity
and fraud reduction via
• Visibility from supply chain to books boosts credibility: Increases
automation difficulty of shadow accounting and manual adjustments to accounts
• Mobile phone based accounting and stock management is
Uses mobile gateway to extend accessible at a low cost and literacy threshold: Reduces waste in
enterprise grade solutions to system via real time stock adjustments and price transparency
small shop keepers • Learnings from MNCs leveraged in retail product: Extends best
practices to through the value chain to distributors
• Localization of technology via extrapolation to mobile platform:
Extends learnings from exposure Rebuilds existing solutions for mobile device deployment to enable
to international markets to greater utilization in East Africa
provide tailored solutions • Serves as interface between Kenya/world: Exposure via competitions
gives international community a view into innovative Africa
• 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
Challenges 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

12. Hierarchy of ICT Needs: Nigeria
Hierarchy of ICT Needs: Nigeria
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
page 11

13. Nigeria roadblocks and pathways
Roadblocks Pathways
Mobile phones as digital gateway: Increased access to smart
phones, mobile enabled web pages, mobile as information portal,
Low digital literacy: Constrains ICT adoption and mobile application monetization
1
innovation at consumer and commercial levels
ICT education: Increased access to ICT in schools, dedicated
training for students and business owners
International leadership enabler: Mix of domestic and foreign
managers, advisors, and directors
Lack of exposure to external markets, few domestic
forums: Reduces visibility into new technology and 2 Exposure as a two way street: Expert exchange and learning
scale of business trips, in country forums and incubators
Online tech community portal: Development and networking
tools for African tech stakeholders
Investment rather than aid: Low returns to early stage venture
High barriers to business development: Little early in Nigeria, but necessary for growth
3
stage capital, high cost of operation, high cost of failure Operating cost parity: Support for high cost of power,
connectivity, and facilities
Limited access to virtual payments: High non-
banked population (80%) and limited means for online 4 Mobile money adoption: Support for regulation and
payment limits ability to automate for domestic needs encouragement of mobile money movement
Technology as a fraud reduction tool: Business automation to
Rampant fraud and mistrust: High levels of distrust enable scale and increase intra business accountability via
within businesses and among partners, strong reliance transparency
on relationships rather than capabilities, international 5
Certification promotion: Objective certifications of ability and
perception of risk reliability among individuals and businesses to enable non
relationship-based counter party verification
page 12

14. Insights from firms on challenges to growth
Observations
Adlevo • Principals entered the market to invest in innovative platforms but found only a few
USD 52M Growth equity truly innovative companies, and even fewer with proven technology and revenue
Capital fund based in Nigeria. • Tech entrepreneurs mostly clustered in web design and portal development
Founded by former Silicon • Very little technology observed in schools (even at University level)
Valley based tech investor.
Portfolio includes • Education: Investment in education and research engines needed to develop
Insights
investment in Interswitch. 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)
Observations
Paga • Paga pays USD 800 per week for a generator (power redundancy), major telecoms
Mobile money provider providers must place generators and security at each tower deployed in Nigeria
based in Nigeria. Founded • The top developers at Paga are in very high demand and are in high demand
by former tech and Private
Equity professionals.
Granted provisional license
• Infrastructure/ Cost of operation/ Policy: Power inconsistency and security
Insights
by the Central Bank of
requirements for business in Nigeria suffocating business growth and development
Nigeria to launch services
• Education: In Nigeria a premium is placed on the developers that were able to get
in two states.
enterprise grade education, this typically came from international exposure
page 13

15. Insights from firms on challenges to growth
Observations
• There is very little tertiary cable installed in rural areas, mobile phones largely used
Mobitel Broadband service for internet connectivity outside of major urban centers
provider based in Nigeria. • Six government ministries were successfully linked via an automated system, this
Led by Nigerian born resulted in the exposure of payroll fraud and resulted in cost savings for the country
telecoms professionals.
Awarded national license • Infrastructure: The gap between rural and urban infrastructure limits potential for
Insights
for 2.3 GHz frequency in traditional ICT in rural areas, but there is opportunity in building mobile capabilities
2010 • Policy: With government backing (this is currently lacking), huge successes in
transparency and efficiency are possible in Nigeria
Observations
Iroko • By digitalizing and streaming Nollywood content on YouTube, Iroko reduced piracy
Digital entertainment based views, distributed internationally, and developed a new revenue stream
Partners provider based in Nigeria. • Internet and power is majority of Iroko expense despite labor intensity of business
Founded by UK trained • Producers only accept cash payment, have mistrust of profit sharing and equity
Nigerian. Largest owner of
Nollywood movie rights • Adoption: Socially driven online offerings serve as a gateway for ICT
Insights
and one of the largest • Exposure: There is an international appetite for Nigeria developed content
Google partners in Africa • Infrastructure: Power inconsistency and cost constraints almost every business
• Education: Potential to reduce mistrust of technology and counterparties
page 14

16. Case Study: Paga- Overview
Services
• 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
Overview: Platform agnostic mobile payments provider in Nigeria Mobile Payments Context
Nigeria, distribution is via Paga Stars agent network
(target to bring on 5,000 agents by Q3 2011) • 16 providers at various stages of development/funding issued
Evolution: Founded in 2009, provisional launch in 2011 provisional licenses by the Central Bank of Nigeria in January 2011
as part of Central Bank of Nigeria trial • Central Bank of Nigeria expected to issue permanent licenses to
four mobile payments providers in May 2011, this has since been
Funding: Funded by founders, venture capital (Tim pushed back to an unspecified date to allow more time for providers
Draper-US), and Goodwell West Africa Microfinance to test their networks
(Goodwell Investments & Alitheia Capital) • Unofficial feedback from the market is that Paga is the most
Users: 9,000 unique users as of early 2011 (just post technically competent provider, however other providers have
launch under provisional license.) Target to register 15M stronger relationships in government
active users and reach 40M Nigerians (3 dependents for
every customer reached)
page 15

17. Case Study: Paga- Contributions to scale ICT
• Security via lower dependence on cash and greater transparency:
Lowers counterparty risk via Limits upside to theft and enables payers to track expenses
secure and convenient
• Transaction convenience via instant payment: Enables commerce
transactions across distances, accurate money transfer, and fast transaction time
• Gateway for banking services: Initial payment service mimics current
Extends alternative financial activity, serves as a stepping stone towards greater utilization of
financial services (lending, savings, investment)
services to the “un-banked”
• Greater visibility into consumer needs: Increased data availability
• Online/mobile payments democratize eCommerce: Pushes access
Extends opportunities in to the 80-90% of Nigerians that are not banked
eCommerce down the pyramid • Opens up new customer base to online vendors: Expands
addressable market size for vendors (increases value of online assets)
• 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)
Challenges • 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

18. Hierarchy of ICT Needs: Morocco
Hierarchy of ICT Needs: Morocco
Illustrative quote:
“We don’t compare ourselves to the rest of Africa, we compare
ourselves to the rest of the World” – Moroccan ICT expert
page 17

19. Morocco roadblocks and pathways
Roadblocks Pathways
Knowledge exchange events in sub-Saharan Africa: Use
Limited exposure to sub-Saharan Africa: Limits education as a means to open up markets and support other
extent to which Morocco serves as a continental leader African countries
1 International partnerships and engagement in continental
and scope of market access for domestic tech
companies symposiums: Leverage opportunities for in person meetings with
potential partners
Lack of research and development Lower barriers to University researcher participation in
commercialization: Top talent largely in Universities 2 upside to commercialization: Leverage Silicon Valley and
with limited ability to commercialize technology Israel models to tech research acceleration
Opportunity for greater exposure of top technology
talent to non-Africa innovation hubs: Current Expand exchange programs to include greater diversity of
3 Morocco (age and sector) and increase number of people
exchange programs limited to only a few participants
(ex. Only 20 in South Korea exchange) who are able to attend
Limited utilization of technology by broad Increase familiarity with technology at a young age: Provide
population beyond basic services: Adoption in continued support to educational initiatives (ICT as a right not a
schools still in transition period with some push-back privilege)
4
from teachers. Few popular organically developed Provide greater support to very young, innovative
websites. Limited use of mobile and purely online companies: Offer stepping stone incubators to support
payments. companies not yet prepared to enter techno-parks
page 18

20. Insights from firms on challenges to growth - Morocco
Observations
• Businesses in the Technopark benefit from co-located travel services, printing, health
Casablanca Technopark services, and postal services; also benefit from shared utilities, insurance, and space
• Visible examples of success emerged from the Technopark. Ex: First Mile Telecom,
Provider of space, education, Arcanes Technologies, Mobilinfo, Al Hambra Design, and Axentis Group
and back office services for • Co-location of businesses has enabled collaboration among “residents”
~150 Casablanca based tech
• High operational costs: Shared spaces/incubators lower cost of operation
Insights
companies. Founded by
• Exposure/Education: More youth likely to pursue technology when there is high
Ministry of Commerce,
awareness of upside of a tech career and spaces to explore the interest
Industry and ICT
• Networks: Domestic proximity of companies enables scale through collaboration
Observations
• Classes are taught in English and international exchange programs are part of the
Al Akhawayn University curriculum, students show a facility with interaction with foreigners
Independent University that • Executive program annex located in the Casablanca Technopark among medium and
offers research and technology small enterprises
focused concentrations.
Funded by King Fahd of Saudi • Exposure: Interaction and experiences abroad at a young age encourages global
Insights
and King Hassan II of Morocco. collaboration and scale in the future
Has an annex in the • Education: Proximity to corporations enables more tailored education and increases
Casablanca Technopark the likelihood that tech managers will pursue advanced skills training
Observations
Rabat Technopolis • 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:
Science park for engineering, Nemotech Technologie, EDS-HP, Cleanroom, and Alcatel
high tech, education, and
R&D focused enterprises. • Networks: Clear external communication of capabilities and co-location of
Insights
Founded by the government complimentary initiatives enables greater collaboration
of Morocco. • Exposure: Visibility of success stories and proximity of domestic companies to
international leaders raises profile of local companies and boosts knowledge sharing
page 19

21. Case Study: Casablanca Technopark- Overview
Services
• 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
Overview: Provider of clustered space, education, and • Community events: offers annual events outside of Casablanca
services for technology focused small and medium sized (Oujda, Meknes, and Agadir) to extend discussion of technology
enterprises across the country
Evolution: Founded in 2001, supervised by the Ministry of
Commerce, Industry and ICT Sample Residents
Funding: 65% of funding from private Moroccan banks • Innosoft • Al Akhawayn University • Irsal Solution
(AttijariWafa Bank, BMCE Bank, La Banque Centrale • ThinLine • Arcanes Technologies • Kosinux
Populaire, Banque Commerciale du Maroc, La Caisse de • Vigeo Group • Synergy Formation • FTZ Maroc
Depot et de Gestion); 35% funded by the Moroccan • Isis Market • Netcom Technologies • ArtMag
government • Bull Maroc • Wind International • Amexs
• Axentis Group • Prima Group Afrique • Algortech
Users: ~170 small and medium sized technology focused
• Parnet • IT Skills Services • Geoconseil
enterprises (PME), some satellite government offices
• Intechno • P2P Solutions • Infoone
(customs, tech), executive education program of Al
• Just Ask • XPI (Expanded Payment) • Adelo Services
Akhawayn University
• Techma Maroc • Willnet
page 20

22. Case Study: Casablanca Technopark- Contributions
to scale ICT
• Shared services: Utilities, travel, printing, facility administration,
Lowers the risk and cost of doing connectivity, security, and information
business • Co-located enabling functions: Post office, travel agency, health
services, fidelity card, and web presence services
• Central venue for education: Three classroom spaces used by
residents and outside organizations for tech education
Provides education and exposure
• International tech event organization and knowledge sharing:
Venue for startup weekend, offers national education with Numeric
• Grouping and social events for residents: Collaboration and
Facilitates collaboration with knowledge share fostered via resident diversity and grouping
other PMEs and MNCs • Proximity to MNCs and Offshoring hubs: Location near tech MNC’s,
Casa Nearshore, and airport lowers barriers to access for PMEs
• Services for very early stage startups: Limited tools for very small
companies (TPEs), activities confined to one off events
Challenges
• R&D hub partnerships for commercialization: Limited partnership
with one university, opportunity to become more of an R&D hub
page 21

23. Common continental challenges
Infrastructure consistency (high cost of operation)
• 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
Exposure lacking (international and domestic)
• International exposure: leaders of most firms that scale have international
education/exposure. Need exposure to innovations, markets, and funders
Gibraltar
Tunisia
• Domestic exposure: in relationship based societies, tech pros least connected
West Sahara
Morocco
Algeria
Libya Egypt
• Pathways: expert exchange, international competitions/challenges, forums
Mauritania
Gambia
Guinea-Bissau
Senegal
Mali
Burkina Faso
Niger
Chad
Sudan
Eritrea
Djibouti
Digital literacy lacking
• Addressable market small: consumers not able to adopt advanced applications of
Guinea
Nigeria
Somalia
Côte d' Ivoire
Ghana
Sierra Leone
Central African Republic Ethiopia
Liberia
Togo Cameroon
Benin
ICT without understanding, this shrinks the ICT market
Equatorial Guinea
Uganda Kenya
Gabon Democratic
Republic of
Sao Tome and Principe
Congo
Rep. Congo
• Staffing a challenge for ICT firms: top talent expensive, trend to hire from intl.
Rwanda
Tanzania
Burundi
Seychelles
• Pathways: digital literacy in public education, subsidized forums, certifications
Angola
Comoros
Zambia
Mayotte
Zimbabwe Malawi
Mada-
gascar
Namibia
Botswana
Mozambique
South Africa
Swaziland
Cost of hardware high, mobile as a gateway
Lesotho
• 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
Fraud and transparency limiting credibility
• 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
page 22

24. Next steps
• 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
page 23

25. APPENDIX
page 24

26. Appendix: ICT hierarchy classification (Infrastructure, 1/8)
1 2 3 4 5
Daily power Weekly power Monthly power Very few power Very few power
interruptions, interruptions, interruptions, interruptions, interruptions,
Utilities high cost to relatively high some cost to availability in line supply above
consistency cost to consistency with demand demand
consistency
Access only via Cable access Cable access Cable access Cable access
ICT satellite with less than 1 with less than 5 with less than 10 with greater than
Infrastru Internet technology Tb/s capacity Tb/s capacity Tb/s capacity, 10 Tb/s capacity,
cture and more than and more than
three carriers three carriers
Infrastructure Infrastructure Infrastructure Infrastructure Infrastructure not
subject to theft subject to theft under realistic relatively safe, vulnerable to
Infra- or sabotage to a or sabotage to a threat of theft or not vulnerable threats of theft or
structure point that point where sabotage sabotage
Security development is development is
prohibitively expensive
expensive
page 25

27. Appendix: ICT hierarchy classification (Environment, 2/8)
1 2 3 4 5
Dedicated National strategy Funded national Execution of Execution of
Level of agency for ICT in place with strategy for ICT national strategy successful
govern- regulation and support from with broad and partnerships national strategy
ment implementation ministry and federal support with local ICT and partnerships
support broader federal with local ICT
for ICT government
Low level of Moderate level Moderate level High level of High level of
broad based of broad based of broad based broad based broad based
education (less education (4-6 education (6-8 education (8+ education, digital
Environ
Educ- than 4 years years mean years mean years mean literacy training
ment mean schooling), schooling), no schooling), some schooling), the norm for
ation
no access to ICT access to ICT in access to ICT in access to ICT students in
in public schools public schools public schools and some digital public schools,
literacy training ICT integrated
in public schools into instruction
Demo-
GDP per capita GDP per capita GDP per capita GDP per capita GDP per capita
graphic
< USD 1,500 < USD 3,000 < USD 10,000 > USD 10,000, > USD 10,000,
consider-
urban population urban population
ations
< 50% > 50%
page 26

28. Appendix: ICT hierarchy classification (Accessibility, 3/8)
1 2 3 4 5
Mobile Mobile Mobile Mobile Mobile
penetration penetration penetration penetration penetration
Mobile
< 15% < 30% <50% <75% > 75%
phones
Internet Internet Internet Internet Internet
penetration penetration penetration penetration penetration
Internet < 15% < 30% < 50% < 75% > 75%
Accessi
bility
Negligible Some access to High access to High access to High access to
access to shared shared shared shared shared
technology in technology via technology via technology via technology via
Shared schools, public schools, public schools, public schools, public schools, public
technol- spaces, or spaces, or spaces, or spaces, or spaces, or
ogy private private private private private
services enterprises enterprises (ex. enterprises (ex. enterprises (ex. enterprises (ex.
Internet cafes) Internet cafes) Internet cafes) Internet cafes)
that is expensive that is that is
inexpensive inexpensive and
reliable
page 27

29. Appendix: ICT hierarchy classification (ICT enabled private
sector, 4/8)
1 2 3 4 5
Banked Banked Banked Banked Banked
population less population is population is population is population is
than 30% 30% to 50% of 50% to 70% of 70% to 80% of greater than
(mainstream total population total population total population 80% of total
Reach of banks and (mainstream (mainstream (mainstream population
banking alternative banks and banks and banks and (mainstream
channels) alternative alternative alternative banks and
channels) channels) channels) alternative
channels)
ICT
enabled Most Most Transactions, Transactions, Transactions,
private transactions, transactions inventory, inventory, inventory,
sector inventory, inventory, accounting, accounting, accounting,
accounting, accounting, logistics, and logistics, and logistics, and
logistics, and logistics, and payroll payroll payroll
Use of payroll payroll completed using completed using completed using
tech by completed completed spreadsheets POS and ERP POS and ERP
SMEs manually manually with with some use of systems that are systems that are
some use of database and not fully fully integrated
spreadsheets ERP/ POS integrated
and POS functionality
systems
page 28

30. Appendix: ICT hierarchy classification (content development,
5/8)
1 2 3 4 5
Very few Some web Many web Many web Many web
developers, developers, developers, developers, at developers, at
Domestic 0 domestically at least 3 at least 2 least 4 least 1
website developed domestically domestically domestically domestically
develop- websites in top developed developed developed developed
ment 20 sites websites in top website in top 10 website in top 10 websites in the
20 sites sites sites global top 20
sites
Largely informal Largely informal Some reliable High output and High output and
content output, content output, formal content reliability of reliability of
Content Domestic little use of the high use of output through formal content formal content
develop- content internet to forums, blogs, dedicated via dedicated via dedicated
ment output disseminate and social channels channels channels for
information networking sites international
to disseminate audiences
information
Little innovation Some innovation High innovation High innovation High innovation,
in software and in software and in software and in software and domestically
Domestic hardware, high hardware, high hardware, some hardware, low produced
innovation dependency on dependency on dependency on dependency on platforms
platforms platforms platforms platforms develop for
developed developed developed developed international
internationally internationally internationally internationally audiences
page 29

31. Appendix: ICT hierarchy classification (content export, 6/8)
1 2 3 4 5
Negligible Some Some Moderate High
international international international international international
consumption of consumption of consumption of consumption of consumption of
domestically domestically domestically domestically domestically
developed developed developed developed developed
innovations innovations, innovations, innovations, innovations,
largely focused focused on focused on focused on
Global on content rather platforms and platforms and platforms and
use of than platforms content content content
inno- to consistency
Content
vations
export from
country
page 30

32. Appendix: ICT hierarchy classification (BPO, 7/8)
1 2 3 4 5
Negligible Some Moderate High Level 4 AND
specialization of specialization of specialization of specialization of customer
Speciali-
business business business business communications,
zation of
functions functions, largely functions, functions, and consistent
tech
isolated to one- including including engagement with
enabled
off projects outsourced ICT outsourced ICT external experts
functions
advisory, and advisory, on business
administrative external support processes
functions of logistics, and
administrative
BPO
functions
Negligible BPO Moderate BPO Moderate BPO High BPO High BPO
Destina- service provision service provision service provision service provision service provision
tion as a to international to international to international to international to international
special- companies companies, but companies, companies, companies,
ized highly some off shoring some off shoring several off
global fragmented clusters, typically clusters, a shoring hubs, a
provider a secondary primary source primary source
source for for some for many
international international international
companies companies companies
page 31