Impact of the Internet in Nigeria - Mobile Monday Nigeria

19
1

description

Impact of the Internet in Nigeria by Dalberg Research - Presented on September 30th, 2013 at MobileMonday Nigeria by Robin Miller

Transcript of Impact of the Internet in Nigeria - Mobile Monday Nigeria

Page 1: Impact of the Internet in Nigeria - Mobile Monday Nigeria

1

Page 2: Impact of the Internet in Nigeria - Mobile Monday Nigeria

2

The good…

…the bad…

…and the unfulfilled potential

Page 3: Impact of the Internet in Nigeria - Mobile Monday Nigeria

3

The good…

Page 4: Impact of the Internet in Nigeria - Mobile Monday Nigeria

4

Access to affordable infrastructure is increasing

“In 10 short years, what was once an object of luxury and privilege, the mobile phone, has become a basic necessity in Africa”

Paul Kagame

75%Mobile penetration in Nigeria. 63% in Africa – growing from 0.5% in 1998 to 63% in 2013

>30%of Nigerians are online and this number is growing… particularly due to mobile internet

1.38%increase in GDP for every 10% increase in broadband across sub-Saharan African countries

Source: ITU World Telecommunication/ICT Indicators database

Page 5: Impact of the Internet in Nigeria - Mobile Monday Nigeria

5

Innovation is driving infrastructure investment and further extending access

Page 6: Impact of the Internet in Nigeria - Mobile Monday Nigeria

6

Social media is creating millions of connections across the continent, particularly as delivered through mobile enabled devices

Web-based Phone enabled (through apps)

Page 7: Impact of the Internet in Nigeria - Mobile Monday Nigeria

7

There is no shortage of innovative ideas and early indications of impact…Our study surveyed over 1300 businesses across four countries and considered more than 900 deployments of Internet enabled solutions across six sectors and eight impact areas

Page 8: Impact of the Internet in Nigeria - Mobile Monday Nigeria

8

Access to financial services: eCommerce and payment platforms

N18bn transacted by Mar2013

Nearly

1M users

Access to job opportunities: Correcting information asymmetry

related to employment options

>40K jobs facilitated by 2013

Impact is being delivered in both social and economic terms

0.87

Users after first year of operation

Users Sep2013

0.04 million

0.36 million

Initial user base

Access to education: Digital books are creating access

to reading and learning

>10.1M annual page reads in Nigeria and over 190,000 readers across Africa 80K

Total jobs advertised

No. jobs facilitated

Page 9: Impact of the Internet in Nigeria - Mobile Monday Nigeria

9

Public, private and philanthropic investors are making big bets

Page 10: Impact of the Internet in Nigeria - Mobile Monday Nigeria

10

…the bad…

Page 11: Impact of the Internet in Nigeria - Mobile Monday Nigeria

11

Challenges related to access, innovation, and policy are holding back growth

2. SCALE

We’re suffering from ‘pilotitous’…

Pilots must lead to next wave growth and large scale impact

3. POLICY & INNOVATION

Are policies driving innovation?

Are policies aligned to fully leverage the information economy to drive growth?

Sector-specific policy

Business/ enterprise

policy

Technology policy

1. ACCESS

<35% Internet penetration in Nigeria

<10% African businesses online

Page 12: Impact of the Internet in Nigeria - Mobile Monday Nigeria

12

Reputation of the ICT and general business environment isn’t great

Page 13: Impact of the Internet in Nigeria - Mobile Monday Nigeria

13

…and the unfulfilled potential

Page 14: Impact of the Internet in Nigeria - Mobile Monday Nigeria

14

How do we drive meaningful access? What are the conditions for success?

Source: Dalberg research and analysis

Two key pillars provide the basis for a well-functioning Internet economy: “core infrastructure” and “conditions for use”

Core Index

Environmental characteristics

Physical infrastructure

Business environment

Citizen demographics

Business demographics

Stakeholder characteristics

Usage Index

Means to use Internet

infrastructure

Availability

Accessibility

Awareness

Attractiveness

Desire to use Internet

infrastructure

Core and Usage Index

Countries that wish to reap the Internet’s potential for social and economic gains must continue to invest in infrastructure and the broader ecosystem for innovation.

Page 15: Impact of the Internet in Nigeria - Mobile Monday Nigeria

15

Continuous investment in infrastructure is critical

Mapping of countries based on conditions for Internet use and core infrastructure

Sub-Saharan Africa is on the right trajectory but, absent a minimum investment in core infrastructure, countries face a ceiling to progress on usage conditions

Page 16: Impact of the Internet in Nigeria - Mobile Monday Nigeria

16

Three recommendations for Nigeria

1. Impact: Look toward payment platforms to unlock the next wave of African online consumers and translate virtual connections into meaningful economic value

2. Access: Continue to invest in infrastructure by looking for opportunities to align incentives between public and private sector

3. Ecosystem: Invest in creating policy the drives innovation…and explore how ICT can enable that innovation

Page 17: Impact of the Internet in Nigeria - Mobile Monday Nigeria

17

Twitter: _robinmillerEmail: [email protected]

Page 18: Impact of the Internet in Nigeria - Mobile Monday Nigeria

18

Dalberg is an advisory firm dedicated to global development

World Bank

Sampling of clients served

Global presence

JohannesburgBogota

New York

Washington DC

Nairobi

San Francisco

Geneva

Copenhagen

DakarMumbaiBogota

Services provided

• Analysis of market needs, gaps and opportunities• Business case development for new initiatives• Creation of innovative financing mechanisms• Entry strategies for products and services to emerging and

frontier markets• Evaluation and performance management• Facilitation of public-private partnerships• Mobile channel strategy and implementation plans• Organizational reform to strengthen accountability, efficiency

and effectiveness • Policy and advocacy support

• Access to finance• Agricultural development• Capital advisory services• Climate change, conservation and energy• Education• Emerging and bottom-of-pyramid markets • Global health• Human rights• Mobile and ICT applications in development• Programs in conflict areas and post-conflict recovery

Areas of expertise

Page 19: Impact of the Internet in Nigeria - Mobile Monday Nigeria

19

Dalberg’s services address a range development issues, which give us a unique perspective on the application of technology for development