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UNECA Overview of Rwanda’s ICT Context Dr. Félicien Usengumukiza Senior Research Fellow Institute of Policy Analysis and Research (IPAR- Rwanda)

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Presentation on theme: "UNECA Overview of Rwanda’s ICT Context Dr. Félicien Usengumukiza Senior Research Fellow Institute of Policy Analysis and Research (IPAR- Rwanda)"— Presentation transcript:

1 UNECA Overview of Rwanda’s ICT Context Dr. Félicien Usengumukiza Senior Research Fellow Institute of Policy Analysis and Research (IPAR- Rwanda) felicien.usengumukiza@ipar-rwanda.org Kigali, July 28 th, 2009

2 Contents Introduction The role of ICT in Economic development Situational Analysis of ICT sector in Rwanda The place of ICT in implementation of Vision 2020 program SWOT Analysis of ICT sector in Rwanda Summary and Recommendations

3 Rwanda’s Economic Development is based on clear and defined program EDPRS, 2012 MDGs, 2015 VISION 2020 Good Governance and a Capable State HRD and Knowledge based Economy A Private sector-led Economy Infrastructure Development Productive and Market oriented Agriculture Regional and International Economic Integration ICT is a cross- cutting area of Vision 2020

4 ICT is an engine of economic performance for countries Reduction of transaction costs Increase productivity New trade opportunities Access to knowledge Increase competition Better communication The ICT-induced changes are transforming the rules of competition and giving rise to new types of competitive strategies: innovation-driven competition, time-based competition; mass customization; lean manufacturing, and demand-driven, built-to- order products (Fine, 1998). ICT can also facilitate the rapid growth for foreign direct investment (FDI) allowing global business management along the whole supply-chain through effective information and communication networks. A reduction of transaction costs and times can help developing countries to take advantage of the opportunities resulting from trade liberalization. ICT has drastically cut long-standing obstacles to communication: time and distance. New communication technologies allow companies to source inputs independent of location.

5 ICT Competitiveness refers to a country’s capacity to exploit Information and communication technology in order to effectively participate in the global information economy. 5 ICT Competitiveness ICT Infrastructure ICT Environment ICT Laws Human Resources

6 35% of total FDI in SSA was from telecom Telecom FDI versus Total FDI in SSA (2000-2004) … and investments in SSA are mostly concentrated on ICT Source: World Bank WDI (2007)

7 All over the world, the Mobile Phone witnesses a spectacular penetration rate in one decade Global ICT Development, 1998-2008 Source: International Telecommunication Union, 2008

8 As in many other countries, Rwanda recorded a spectacular increase rate of Mobile phone in one decade ICT Penetration in Rwanda (2000-2009) Source: RURA, 2009

9 ICT Penetration in the EAC Countries, 2008 In comparison with its counterparties of the EAC, Rwanda is not yet attractive in terms of ICT penetration Source: ITU, ICT indicators, 2009

10 Fixed phone penetration is growing slowly even in many cases decreasing. Rwanda remains on the bottom of the list of EAC Countries 10

11 …. and Mobile phone penetration is growing rapidly in all countries and Kenya is above the African average. 11 Mobile phone penetration in EAC Countries, 2000-2008

12 Internet is also growing significantly particularly in Uganda. 12 Internet penetration rate in EAC Countries, 2000-20008 Source: ITU, 2008

13 Mobile phone and internet penetration rate reached more than 1000% in EAC countries in one decade 13 % of Mobile phones penetration in 2000-2008 % of Internet penetration in 2000-2008

14 As ICT network infrastructure is currently concentrated in Kigali City, ICT penetration rate is also higher in Kigali in comparison with Provinces 14

15 Due to ICT market liberalization, the monopoly spirit is broken with participation of different companies to the market. Number of telecom network operators and their respective number of subscribers Source : RURA, December 2008 ServiceLicensed OperatorsNumber of SubscribersMarket share (%) Fixed TelephonyRwandatel MTN Rwandacell Artel International* 16,770 82 0 99.5% 0.5% 0% Mobile TelephonyMTN Rwandacell Rwandatel 1,158,674 163,963 87.6% 12.4% Internet Service Provision Rwandatel ISPA MTN Rwandacell New Artel Altech Stream Rwanda Value Data Rwanda* Star Africa Media* Greenmax* Augere Rwanda* Comium* 4,187 67 4,021 151 19 0 49.5% 0.79% 47.6% 1.78% 0.22% 0% Pay-TVGTV Star Africa Media Tele 10 617 5,105 1,543 8.49% 70.26% 21.23%

16 16 Basic service per minute local call200420052006200720082009 proj. Fixed line usage tarrifs14 33 Fixed line installation charges30,000 Mobile contract usage tarrifs - MTN104114 81 Mobile contract usage tarrifs - Rwandatel50 70 Mobile prepaid usage tariffs - MTN133147 100 Mobile prepaid usage tariffs -Rwandatel55 80 Mobile phone handset cost90,00012,000 Internet Fixed line internet usage tariffs - MTN45,000 Fixed line internet usage tariffs - Rwandatel45,000 Mobile phone internet usage tariffs - MTN20,000 Mobile phone internet usage tariffs - Rwandatel35,000 Broadband Internet Fixed line internet usage tariffs - MTN190,000 Fixed line internet usage tariffs - Rwandatel200,000 Mobile internet usage tariffs - MTN20,000 Mobile internet usage tariffs - Rwandatel35,000 RURA, 2009 ICT Basic services and tariffs The more ICT Market enters into open competition, the more consumers are getting better services. The increase in mobile phone services has been accompanied by decrease of costs of connections and handsets

17 ICT remains the most attractive area for Foreign Direct Investment 17 Source: RDB/RIEPA, 2007 Rwanda’s Investment by sub-sector, 2006

18 To this end, ICT has a significant impact to Socio Economic Performance to the country. This trend has also a positive impact to the economic growth Socio Economic Indicators2003200420052006 1. Total Investment3,723,085,0002,306,143,0005,665,153,0005,026,461,000 2. Investment revenue15,663,469,00020,056,201,00018,812,518,00033,144,313,000 3. Taxes3,735,804,2136,512,211,9866,607,008,5749,121,399,468 4. Direct job creation128131145152 5. Indirect job creation1,4502,6003,5605,820 6. Universal Access Fund 171,774,695166,202,866295,344,085 Source: Nsengiyumva Albert et al., Pro-Poor ICT Project Report – Rwanda: A Community-driven Network, July, 2007 ICT Sector Contribution to GDP, 2005 Source: TMG, Inc., 2008 ICT Expenditure, 2005-2012 Source: MINECOFIN, 2009

19 In the framework of Vision 2020, GoR is committed to use ICT in most of its activities in order to facilitate the rapid socio-economic development 1. Education 2. Human Resource Development 3. Infrastructure, Equipment and Content 4. Economic Development 5. Social Development 6. E-Government and E-Governance 7. Private Sector Development 8. Rural and Community Access 9. Legal, Regulatory and Institutional provisions and standards 10. National Security Law and order 1. Education 2. Human Resource Development 3. Infrastructure, Equipment and Content 4. Economic Development 5. Social Development 6. E-Government and E-Governance 7. Private Sector Development 8. Rural and Community Access 9. Legal, Regulatory and Institutional provisions and standards 10. National Security Law and order Agricultural Based Economy Knowledge Based Economy By 2020 Kigali Metropolitan Network Kalisimbi Project E-Government National Data Center NICI III NICI I NICI II NICI IV EASSY Project Rwanda National Backbone Project Regional Communication Infrastructure Project Kigali ICT Park

20 The EASSY Project to which Rwanda is integrated will contribute significantly to Rwanda’s integration to the world economy. 20 The implementation of this project will allow Rwanda to become in ICT hub in the region

21 21 Source: RITA, Mid-term Evaluation of the NICI 2010 Implementation for RITA, December, 2008 Although the NICI II is mostly on Infrastructure phase, GoR recorded a good number of achievements. NICI 2010 Implementation progress

22 Through NICI program, most of activities are now based on E-Sector E-Education - One Laptop per Child project: 100,000 computers distributed to different primary schools - E-Schools in secondary school - Regional ICT Training and Research Center (RITC) - E-Learning - Distance Learning - Rwanda Education and Research Network - GIS, Rwanda Development Gateway E-Education - One Laptop per Child project: 100,000 computers distributed to different primary schools - E-Schools in secondary school - Regional ICT Training and Research Center (RITC) - E-Learning - Distance Learning - Rwanda Education and Research Network - GIS, Rwanda Development Gateway E-Health: - An open-source Medical Records System that tracks patient-level data - TracPlus and TRACnet – Monthly monitoring of infectious diseases including HIV/AIDS, TB, and Malaria - Telemedicine – Information and communication technology (ICT) used to deliver health and healthcare services - Mobile e-Health- use of mobile technology in improving health delivery in Rwanda - Health Management Information Systems (HMIS) – systems that integrate data collection processing, reporting, and use of the information for programmatic decision-making.

23 E-Government - Fiber optic Installation, connectivity of a good number of schools, hospitals and other public institutions - Public Access Channels (12 Tele centers- Desks are already operational) - Kigali ICT Center - Smart National Cards, ID, E-business E-Government - Fiber optic Installation, connectivity of a good number of schools, hospitals and other public institutions - Public Access Channels (12 Tele centers- Desks are already operational) - Kigali ICT Center - Smart National Cards, ID, E-business E-Agriculture - Agricultural Management Information System (AMIS) is an exchange platform for all stakeholders of the agricultural and livestock sector - E-soko project seeks to empower farmers to enable them make more informed market pricing decisions and ultimately more successful farming E-Agriculture - Agricultural Management Information System (AMIS) is an exchange platform for all stakeholders of the agricultural and livestock sector - E-soko project seeks to empower farmers to enable them make more informed market pricing decisions and ultimately more successful farming Through NICI program, most of activities are now based on E- Sector (Cont’d)

24 Ministry in Charge of Science, Technology and Research RDB/RITA RURA Ministry of Infrastructure Institutional arrangement The development of ICT sector needs cooperation of these institutions.

25 Although the country witnesses a good number of challenges, the opportunities are also considerable and the future is promising 25 STRENGTH  Strong political will in support of ICT  Existing of National ICT Policy, NICI  ICT sector budget is on par with OECD countries at 1.6 percent, far above the African average  Smallness of the countries would facilitate ICT Network infrastructure  Strong Institutional organization (RDB/RITA, MINISTR, RURA, etc.  ICT is the most attractive in terms of Investment  E-Government and E-Governance STRENGTH  Strong political will in support of ICT  Existing of National ICT Policy, NICI  ICT sector budget is on par with OECD countries at 1.6 percent, far above the African average  Smallness of the countries would facilitate ICT Network infrastructure  Strong Institutional organization (RDB/RITA, MINISTR, RURA, etc.  ICT is the most attractive in terms of Investment  E-Government and E-Governance THREAT  Existing of strong competition in the region. Each EAC member is aiming to become in ICT hub in the region.  Potential ICT crime and difficult to control it  Loss of job due to ICT application THREAT  Existing of strong competition in the region. Each EAC member is aiming to become in ICT hub in the region.  Potential ICT crime and difficult to control it  Loss of job due to ICT application OPPORTUNITIES  Regional Communication Infrastructure Project (RCIP)  Kalisimbi Project  Kigali Metropolitan Network and Wibro Mobile Wimax Technology  Rwanda National Backbone Project  Rwanda is integrated to the EASSY Project  National Data Center  Regional interconnectivity (MTN Rwanda, MTN Uganda, Safaricom, Vodacom, Com Burundi OPPORTUNITIES  Regional Communication Infrastructure Project (RCIP)  Kalisimbi Project  Kigali Metropolitan Network and Wibro Mobile Wimax Technology  Rwanda National Backbone Project  Rwanda is integrated to the EASSY Project  National Data Center  Regional interconnectivity (MTN Rwanda, MTN Uganda, Safaricom, Vodacom, Com Burundi WEAKNESSES  Lack of necessary technical and professional level of human resources  Insufficient of electricity which is a prerequisite to the ICT accessibility  Inadequate financial resources  High cost of communication in comparison with neighboring countries  Lack of awareness about ICT and the benefits of e- government in both urban and rural areas  Weak private sector  Existing of high rate of illiteracy WEAKNESSES  Lack of necessary technical and professional level of human resources  Insufficient of electricity which is a prerequisite to the ICT accessibility  Inadequate financial resources  High cost of communication in comparison with neighboring countries  Lack of awareness about ICT and the benefits of e- government in both urban and rural areas  Weak private sector  Existing of high rate of illiteracy ICT SWOT Analysis

26 The implementation of the program requests a particular attention of certain measures. Capacity building and training: ICT Skills, Training and Awareness Basic infrastructure needs a rapid improvement as a prerequisite to ICT development Development of Network infrastructure technologies especially in rural area Investment in terms of softwares production and their commercialisation More Cooperation with stakeholders including Public- private Partnerships in ICT development Retention policy for trained staff with high skills in ICT Dissemination of information and research related to ICT in order to share experiences and to avoid duplication and waste of time.

27 “It is expensive to built a road, but not to built it is more expensive” Italian Proverb “It is expensive to built a road, but not to built it is more expensive” Italian Proverb

28 Thank you for your Attention


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