FELICIEN - AfDB ICT Situational Analysis in Rwanda

8/3/2019 FELICIEN - AfDB ICT Situational Analysis in Rwanda

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UNECA

Overview of Rwandas ICT Context

Dr. Flicien Usengumukiza

Senior Research Fellow

Institute of Policy Analysis and Research (IPAR-

Rwanda)

[email protected]

Kigali, July 28th, 2009
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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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


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Rwandas Economic Development is based on clear and defined

program

EDPRS, 2012

MDGs, 2015

VISION 2020

G

oodGovernanc

eanda

CapableSta

te

HRDandKnow

ledge

basedEcono

my

APrivatesector-led

Economy

Infrastructu

re

Development

P

roductiveandM

arket

orientedAgricu

lture

Reg

ionalandInternational

E

conomicIntegr

ation

ICT is a cross-cutting area of

Vision 2020


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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.


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ICT Competitiveness refers to a countrys 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 LawsHuman Resources


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Telecom FDI,

20

Other FDI,

38

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)


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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

0

10

20

30

40

50

60

70

1998

2000

2001

2002

2003

2004

2005

2006

2007

2008

Per

100

inhabitants

Fixed telephone lines

Mobile cellular telephone subscriptions

Internet users

Fixed broadband subscriptionsMobile broaband subscriptions


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As in many other countries, Rwanda recorded a spectacular

increase rate of Mobile phone in one decade

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Mobile subscribers

Fixed phone subscribers

Internet subscribersRural phones

ICT Penetration in Rwanda (2000-2009)

Source: RURA, 2009


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0.34

5.43

0.73

0.65

42.11

8.71

0.17

15.5

3

0.3

31.37

1.25

0.53

26.82

7.84

3.38

38.54

6.93

0

10

20

30

40

50

60

Burundi Kenya Rwanda Tanzania Uganda Africa

Internet use rs per 100 inha b.

Mobil e s ubscribers per 100 inhab.

Fixed phone per 100 inhab.

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


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Fixed phone penetration is growing slowly even in many cases

decreasing. Rwanda remains on the bottom of the list of EAC

Countries

10

Rwanda

Africa

0

0.5

1

1.5

2

2.5

3

3.5

4

2000 2001 2002 2003 2004 2005 2006 2007 2008

Fixed phones penetration in EAC Countries, 2000-2008

Burundi

Kenya

Rwanda

Tanzania

Uganda

Africa


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. 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

Kenya

Rwanda

Tanzania

Burundi

Uganda

Africa

0

5

10

15

20

25

30

35

40

45

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009


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Internet is also growing significantly particularly in Uganda.

12

Burundi

Kenya

Rwanda

Tanzania

Uganda

Africa

0

1

2

3

4

5

6

7

8

9

10

2000 2001 2002 2003 2004 2005 2006 2007 2008

Internet penetration rate in EAC Countries, 2000-20008

Source: ITU, 2008


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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

2172

10026

2695

9803

5157

2025

0

2000

4000

6000

8000

10000

12000


912

2639

5000

1041

4900

1260

0

1000

2000

3000

4000

5000



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As ICT network infrastructure is currently concentrated in Kigali

City, ICT penetration rate is also higher in Kigali in comparison with

Provinces

14

0 2 4 6 8 10 12 14 16

Kigali City

Southern Prov.

Western Prov.

Northern Prov.

Eastern Prov.

Total Total HH with phones

Fixed & Mobile PhonesMobile Phones

Fixed Phones


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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

Service Licensed Operators Number of Subscribers Market share (%)Fixed Telephony Rwandatel

MTN Rwandacell

Artel International*16,770

82

099.5%

0.5%

0%Mobile Telephony MTN Rwandacell

Rwandatel 1,158,674163,963 87.6%12.4%Internet ServiceProvision

RwandatelISPA

MTN Rwandacell

New Artel

Altech Stream Rwanda

Value Data Rwanda*

Star Africa Media*

Greenmax*Augere Rwanda*

Comium*

4,18767

4,021

151

19

0

0

00

0

49.5%0.79%

47.6%

1.78%

0.22%

0%

0%

0%0%

0%Pay-TV GTV

Star Africa Media

Tele 10617

5,105

1,5438.49%

70.26%

21.23%


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Basic service per minute local call 2004 2005 2006 2007 2008 2009 proj.

Fixed line usage tarrifs 14 14 33 33 33 33

Fixed line installation charges 30,000 30,000 30,000 30,000 30,000 30,000

Mobile contract usage tarrifs - MTN 104 114 114 114 81 81

Mobile contract usage tarrifs - Rwandatel 50 50 70 70

Mobile prepaid usage tariffs - MTN 133 147 147 147 100 100

Mobile prepaid usage tariffs -Rwandatel 55 55 80 80Mobile phone handset cost 90,000 12,000 12,000

Internet

Fixed line internet usage tariffs - MTN 45,000 45,000

Fixed line internet usage tariffs - Rwandatel 45,000 45,000

Mobile phone internet usage tariffs - MTN 20,000 20,000

Mobile phone internet usage tariffs -

Rwandatel 35,000 35,000

Broadband Internet

Fixed line internet usage tariffs - MTN 190,000 190,000

Fixed line internet usage tariffs - Rwandatel 200,000 200,000

Mobile internet usage tariffs - MTN 20,000 20,000

Mobile internet usage tariffs - Rwandatel 35,000 35,000

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 bydecrease of costs of

connections and

handsets


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ICT remains the most attractive area for Foreign Direct

Investment

17Source: RDB/RIEPA, 2007

Rwandas Investment by sub-sector, 2006

Energy, 22%

Agribusiness, 5%

Education, 4%Agroprocessing, 2%

Petrolium, 9%

Telecom., 23%Property, 5%Banking, 3%

Service, 1%

Hotel, 14%

Food Processing, 5%

Manufacturing, 2%

Other, 1%

Transport, 0.60%

Tourism, 7%

Mining, 4%

Construction, 2%

Health, 1%

Finance, 0.40%

ICT seems to

be the most

lucrative

sector for

investment

hi d h i ifi i i i


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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 Indicators 2003 2004 2005 2006

1. Total Investment 3,723,085,000 2,306,143,000 5,665,153,000 5,026,461,000

2. Investment revenue 15,663,469,000 20,056,201,000 18,812,518,000 33,144,313,0003. Taxes 3,735,804,213 6,512,211,986 6,607,008,574 9,121,399,468

4. Direct job creation 128 131 145 152

5. Indirect job creation 1,450 2,600 3,560 5,820

6. Universal Access Fund 171,774,695 166,202,866 295,344,085

Source: Nsengiyumva Albert et al., Pro-Poor ICT Project Report Rwanda: A Community-driven Network , July, 2007

1.6%

2.7%

3.4%

4.1%4.3%

4.8%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Ethiopia Rwanda Uganda Tanzania Sudan Kenya

ICT Sector Contribution to GDP, 2005

Source: TMG, Inc., 2008

ICT Expenditure, 2005-2012

Source: MINECOFIN, 2009

0.39% 0.32% 0.64%

1.95%

2.96%

1.53% 1.53%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

2005 2006 2007 2008 2009/10 2010/11 2011/12


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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

Agricultural

Based

Economy

Knowledge

BasedEconomy

By 2020

KigaliMetropolitan

Network

Kalisimbi

Project

E-GovernmentNational

Data Center

NICIIIINICI I NICI II NICI IV

EASSY

Project

Rwanda

NationalBackbone

Project

Regional

Communication

Infrastructure

Project Kigali ICTPark

h j hi h d i i d ill ib
http://www.rwandagateway.org/article.php3?id_article=8459&lang=


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The EASSY Project to which Rwanda is integrated will contribute

significantly to Rwandas integration to the world economy.

20

The implementation ofthis project will allow

Rwanda to become in

ICT hub in the region


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21

11%

65%

24%

Implemented

Under implementation

Have not started

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


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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-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.


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E-Government

- Fiber optic Installation, connectivity of

a good number of schools, hospitals andother 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 forall 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 (Contd)


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Ministry in Charge of Science,

Technology and Research

RDB/RITA RURA

Ministry of Infrastructure

Institutional arrangement

The development ofICT sector needscooperation of theseinstitutions.


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Although the country witnesses a good number of challenges, the

opportunities are also considerable and the future is promising

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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

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

ICT SWOT Analysis


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The implementation of the program requests a particular attention

of certain measures.

Capacity building andtraining: ICT Skills, Trainingand 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 withstakeholders 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.


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It is expensive to built a road, but not to built it is

more expensive

Italian Proverb


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Thank you for your Attention

FELICIEN - AfDB ICT Situational Analysis in Rwanda

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