Connectivity and growth in the Rwandan BPO sector   Mark Graham, @geoplace, mark.graham@oii.ox.ac.uk

Nicolas Friederici, @friedema, nicolas.friederici@oii.ox.ac.uk

cii.oii.ox.ac.uk  

East  Africa  was  the  last  major  region  on  Earth  without  fibre-­‐op9c  broadband  Internet  access,  but  the  last  couple  of  years  have  seen  a  rapid  expansion  of  its  Internet  infrastructure.  Maps:  hCp://manypossibili9es.net/african-­‐undersea-­‐cables  

Changing connectivity will allow East Africa to “become part of the global economy.” - Tanzania’s President, Jakaya Kikwete

Vision 2020 Vision 2030

Methods: In-depth qualitative

102 in-depth interviews in Kenya & Rwanda, 2 years Theory & literature •  ICTs & distance, (dis-) intermediation •  Trust/reputation/conceptual

connectivity • Value chains and networks •  Inflows of BPO work

Overview: Connectivity-based enterprises 1.  No vibrant BPO sector in Rwanda;

Kenya had longer history

2.  ICT innovators: startups, entrepreneurs, entrepreneurial software developers ICT connectivity enhancers: electronic payment intermediaries, coding training institutions, etc.

3.  Connectivity-based enterprises providing content and services through value chains and networks that depended on ICT infrastructure (hardware and software)

BPO

Connectivity enhancers

Innovators

Findings: Agenda

BPO

Connectivity enhancers Innovators

BPO

Connectivity enhancers Innovators

BPO

Rwanda

BPO

Rwanda

BPO

Kenya

BPO

Connectivity enhancers Innovators

1

4

2

3

BPO in Rwanda

1.  Social connectivities and the focus on domestic and regional markets

2.  International firms in Rwanda; outflows of work 

3.  Trends, debates and demands: local markets & partnerships

BPO

Rwanda

Learning from Kenya?

1.  Learning curve and social connectivity

2.  Global markets brings global competition and dependency

3.  BPO requires scale efficiencies and clients that trust

BPO

Rwanda

BPO

Kenya

BPO in Rwanda and Kenya

1.  Diverse, persistent (re-)intermediation

2.  Global market forces

3.  Late-follower disadvantages and learning curves

BPO

Rwanda

BPO

Kenya

Learning from other sectors?

Rwanda & Kenya 3.  ICT innovators • Enterprise-centric value

networks •  Focus on local from the start •  Sense of opportunity for a

few

4. Connectivity enhancers • Dynamic and diverse value

chains •  Transitions from informal to

formal

Rwanda 1. ICT innovators •  Skills •  Innovation & local

adaptation • Motors for reputation

beyond sector

2. Connectivity enhancers • Exploiting niches through

social connectivities •  Transitions and pathways

BPO

Connectivity enhancers Innovators

Learning from CBEs?

1.  Skills, learning and combinations of local & global knowledge

2.  Trust is needed for ICTs to be able to bridge distances

3.  Accessibility of local and regional markets as competitive advantage

4.  Gateways and gatekeeping

BPO

Connectivity enhancers Innovators

BPO

Connectivity enhancers Innovators

Findings: Summary

1.  Connectivity-based enterprises

2.  Opportunities for cross-sectoral/geographical learning

3.  Social connectivity/trust and local/regional markets

4.  Change dynamics and diversity

Your feedback:

Is this in line with

your experience?

Is this in line with your experience? (1/2)

1.  Are these findings accurate?

2.  Are these findings relevant?

3.  What did we miss?

4.  What are your lessons learned from these findings?

5.  What would you recommend to your colleagues / a new entrant into the sector?

Is this in line with your experience?(2/2)

1.  Does the category of “connectivity-based enterprises” make sense to you?

2.  Can BPO in Rwanda learn from other sectors, from other countries?

3.  Does it match up with your experience that social connectivity/trust matter a great deal?

4.  What was your experience with the learning and change that is happening in the sector?

Policy & sector recommendations

1.  Identifying a competitive edge for the local sector

2.  Adopting a holistic perspective across sectors

3.  Considering social connectivity beyond internet connectivity

4.  Building a sector’s reputation

5.  Setting realistic expectations for collective learning

High-level conclusions

1.  Planning is difficult, and new & unforeseen value chain and network adaptations have been occurring

All actors, incl. policymakers, need to continue to adapt; big upfront investments by governments into CBEs are risky. Company failures are inherent to the process.

2.  Social connectivity matters just as much as internet connectivity for accessing markets and customers

Geography influences social connectivity, so what is geographically close can be more accessible

3.  Competitive advantage has many dimensions One factor, like labour cost, can be nullified by others, and local markets might offer viable business models

Your feedback:

What is

missing?

What is

next?

What is missing? What is next?

1.  Which aspects were confusing or contradictory, and didn’t add up in your view?

2.  What important questions remained unanswered?

3.  What are the barriers that you don’t know how to tackle?

4.  Where do you see the sector in 5 years?

Thank you!

Mark Graham, @geoplace, mark.graham@oii.ox.ac.uk Nicolas Friederici, @friedema, nicolas.friederici@oii.ox.ac.uk