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ICT Situational analysis in Rwan

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									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 28th, 2009


             UNECA
                        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
 Good Governance and a
     Capable State


   HRD and Knowledge
     based Economy



   A Private sector-led
        Economy
                                                           EDPRS, 2012
                                           MDGs, 2015



      Infrastructure
                                                                                                 program




      Development
                             VISION 2020




  Productive and Market
   oriented Agriculture



Regional and International
  Economic Integration
                                                                         Rwanda’s Economic Development is based on clear and defined




                                                      Vision 2020
                                                     ICT is a cross-
                                                    cutting area of
           ICT is an engine of economic performance for countries



A reduction of transaction costs and                                          ICT has drastically cut long-standing
times can help developing countries to                                        obstacles to communication: time
take advantage of the opportunities                                           and distance. New communication
resulting from trade liberalization.                                          technologies allow companies to
                                                                              source inputs independent of
                                                                              location.



                                           Reduction of transaction costs
                                              Increase productivity
                                             New trade opportunities
                                              Access to knowledge
                                              Increase competition
                                              Better communication



ICT can also facilitate the rapid growth                                    The ICT-induced changes are transforming
for foreign direct investment (FDI)                                         the rules of competition and giving rise to
allowing global business management                                         new types of competitive strategies:
                                                                            innovation-driven competition, time-based
along the whole supply-chain through
                                                                            competition; mass customization; lean
effective            information     and                                    manufacturing, and demand-driven, built-to-
communication networks.                                                     order products (Fine, 1998).
ICT Competitiveness refers to a country’s capacity to exploit
Information and communication technology in order to
effectively participate in the global information economy.


  ICT Infrastructure                         ICT Environment




                       ICT Competitiveness



                                                ICT Laws
 Human Resources



                                 5
… and investments in SSA are mostly concentrated on ICT

        Telecom FDI versus Total FDI in SSA (2000-2004)




                                          Telecom
                                           FDI, 20
                Other
                FDI, 38



                                                          35% of total
                                                          FDI in SSA was
                                                          from telecom

                   Source: World Bank WDI (2007)
All over the world, the Mobile Phone witnesses a spectacular
penetration rate in one decade
                                                       Global ICT Development, 1998-2008


                       70
                                          Fixed telephone lines
                       60                 Mobile cellular telephone subscriptions
                                          Internet users
                       50
 Per 100 inhabitants




                                          Fixed broadband subscriptions

                       40                 Mobile broaband subscriptions


                       30


                       20


                       10


                        0
                            1998


                                   2000


                                                2001


                                                              2002


                                                                         2003


                                                                                   2004


                                                                                              2005


                                                                                                        2006


                                                                                                               2007


                                                                                                                      2008
                                                       Source: International Telecommunication Union, 2008
As in many other countries, Rwanda recorded a spectacular
increase rate of Mobile phone in one decade
                          ICT Penetration in Rwanda (2000-2009)

 1600000

 1400000                        Mobile subscribers
                                Fixed phone subscribers
 1200000
                                Internet subscribers
 1000000                        Rural phones

  800000

  600000

  400000

  200000

       0
           2000   2001   2002    2003      2004        2005   2006   2007   2008   2009


                                   Source: RURA, 2009
In comparison with its counterparties of the EAC, Rwanda is not
           yet attractive in terms of ICT penetration
                ICT Penetration in the EAC Countries, 2008
                                     I nte rne t us e rs pe r 100 i nha b.
 60
                                     Mobi l e s ubs cri be rs pe r 100 i nha b.
                                     Fi xe d phone pe r 100 i nha b.
 50
                  8.71
                                                                                     6.93

 40

                                                   1.25             7.84
 30

                 42.11                                                              38.54
 20
                                     3            31.37
                                                                   26.82

 10                                15.5
        0.73
        5.43
                                                                                     3.38
        0.34      0.65             0.17             0.3             0.53
 0
      Burundi   Ke nya         Rwa nda        Ta nza ni a       Uga nda           Afri ca


                         Source: ITU, ICT indicators, 2009
Fixed phone penetration is growing slowly even in many cases
decreasing. Rwanda remains on the bottom of the list of EAC
Countries

                        Fixed phones penetration in EAC Countries, 2000-2008



     4
                                                                               Africa
    3.5
                                                                                        Burundi
     3
                                                                                        Kenya
    2.5
                                                                                        Rwanda
     2
                                                                                        Tanzania
    1.5
                                                                                        Uganda
     1

                                                                                        Africa
    0.5
                                                                               Rwanda
     0
          2000   2001   2002    2003     2004        2005   2006   2007   2008



                                                10
…. and Mobile phone penetration is growing rapidly in all
countries and Kenya is above the African average.

                       Mobile phone penetration in EAC Countries, 2000-2008


 45
                                                                                  Kenya
 40
                                                                                  Africa
 35
                                                                                  Tanzania
 30
                                                                                  Uganda
 25

 20

 15
                                                                                  Rwanda
 10
                                                                                  Burundi
  5

  0
  1999   2000   2001     2002     2003      2004     2005     2006      2007   2008        2009


                                              11
     Internet is also growing significantly particularly in Uganda.
                     Internet penetration rate in EAC Countries, 2000-20008


10


9
                                                                                          Kenya
8
                                                                                          Uganda
7
                                                                                          Africa
6


5


4


3                                                                                             Rwanda
2

                                                                                          Tanzania
1
                                                                                          Burundi
0
       2000   2001          2002       2003         2004          2005   2006   2007   2008




                                              Source: ITU, 2008
                                                   12
Mobile phone and internet penetration rate reached more than
1000% in EAC countries in one decade

   % of Mobile phones penetration in 2000-2008                      % of Internet penetration in 2000-2008


  12000
                                                             5000
  10000
                                                             4000
   8000
                                                             3000                     5000           4900
   6000           10026
                                  9803
                                                             2000
   4000                                                                       2639
                                          5157               1000
   2000                   2695                                                                1041            1260
           2172                                  2025                 912
      0                                                         0
          Burundi Kenya Rwanda Tanzania Uganda Africa               Burundi   Kenya Rwanda Tanzania Uganda   Africa




                                                        13
As ICT network infrastructure is currently concentrated in Kigali
City, ICT penetration rate is also higher in Kigali in comparison with
Provinces


           Total                     Total HH with phones
                                     Fixed & Mobile Phones
   Eastern Prov.                     Mobile Phones
                                     Fixed Phones
  Northern Prov.

  Western Prov.

  Southern Prov.

      Kigali City

                    0   2   4    6           8    10         12   14   16


                                        14
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
         Service                 Licensed Operators          Number of Subscribers      Market share (%)
Fixed Telephony              Rwandatel                             16,770                    99.5%
                             MTN Rwandacell                           82                     0.5%
                             Artel International*                     0                        0%
Mobile Telephony             MTN Rwandacell                      1,158,674                   87.6%
                             Rwandatel                            163,963                    12.4%
Internet Service             Rwandatel                              4,187                    49.5%
Provision                    ISPA                                     67                     0.79%
                             MTN Rwandacell                         4,021                    47.6%
                             New Artel                               151                     1.78%
                             Altech Stream Rwanda                     19                     0.22%
                             Value Data Rwanda*                       0                        0%
                             Star Africa Media*                       0                        0%
                             Greenmax*                                0                        0%
                             Augere Rwanda*                           0                        0%
                             Comium*                                  0                        0%
Pay-TV                       GTV                                     617                     8.49%
                             Star Africa Media                      5,105                   70.26%
                             Tele 10                                1,543                   21.23%

                                            Source : RURA, December 2008
The more ICT Market enters into open competition, the more
consumers are getting better services.
                                            ICT Basic services and tariffs

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            80
Mobile 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          The    increase   in              45,000        45,000
Mobile phone internet usage tariffs - MTN              mobile        phone               20,000        20,000
Mobile phone internet usage tariffs -                  services has been
Rwandatel                                              accompanied       by              35,000        35,000
Broadband Internet                                     decrease of costs of
Fixed line internet usage tariffs - MTN                connections     and              190,000       190,000
Fixed line internet usage tariffs - Rwandatel          handsets                         200,000       200,000
Mobile internet usage tariffs - MTN                                                      20,000        20,000
Mobile internet usage tariffs - Rwandatel                                                35,000        35,000
                                                        RURA, 2009
                                                            16
              ICT remains the most attractive area for Foreign Direct
                                   Investment
                                                        Rwanda’s Investment by sub-sector, 2006


                                                                        Health, 1%
                                                                                               Finance, 0.40%
                                                       Construction, 2%
                      Transport, 0.60%
  Other, 1%

                                                           Mining, 4%
                                         Tourism, 7%
                                                                                                                Energy, 22%
               Manufacturing, 2%
       Food Processing, 5%
                                                                                                                                               Agribusiness, 5%
                                                                                                                                                   Education, 4%
         Hotel, 14%                                                                                                           Agroprocessing, 2%


                                                                                                                               Petrolium, 9%
                 Banking, 3%
                                     Property, 5%
                                                                                       Telecom., 23%


Service, 1%



                                                                                                                                     ICT seems to
                                                                                                                                     be the most
                                                                                                                                     lucrative
                                                                                                                                     sector     for
                                                                                                                                     investment
                                                                                     Source: RDB/RIEPA, 2007
                                                                                               17
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
                 ICT Sector Contribution to GDP, 2005                                            ICT Expenditure, 2005-2012
   6.0%                                                                     3.50%

   5.0%                                                                     3.00%
                                                              4.8%          2.50%
   4.0%                                             4.3%
                                          4.1%                              2.00%
   3.0%                          3.4%
                                                                            1.50%
                        2.7%                                                                                                2.96%
   2.0%                                                                     1.00%                                1.95%
             1.6%                                                                                                                     1.53%     1.53%
   1.0%                                                                     0.50%
                                                                                                      0.64%
                                                                                     0.39%   0.32%
                                                                            0.00%
   0.0%
                                                                                     2005    2006     2007       2008      2009/10   2010/11   2011/12
            Ethiopia   Rwanda   Uganda   Tanzania   Sudan     Kenya
                       Source: TMG, Inc., 2008                                                  Source: MINECOFIN, 2009

          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              33,144,313,000
3. 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
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

                                                                                     Knowledge
 Agricultural                                   By 2020                                Based
   Based                                                                              Economy
  Economy
                      NICI I            NICI II          NICI III          NICI IV

                  1. Education
                  2. Human Resource Development
                                                                                       Kalisimbi
    Kigali                                                                              Project
                  3. Infrastructure, Equipment and Content
 Metropolitan
  Network         4. Economic Development
                  5. Social Development
                  6. E-Government and E-Governance                                       EASSY
                                                                                         Project
   Rwanda         7. Private Sector Development
  National        8. Rural and Community Access
  Backbone
   Project        9. Legal, Regulatory and Institutional provisions and standards
                  10 . National Security Law and order
    Regional
Communication                                   National
 Infrastructure        Kigali ICT              Data Center            E-Government
     Project             Park
The EASSY Project to which Rwanda is integrated will contribute
significantly to Rwanda’s integration to the world economy.




The implementation of
this project will allow
Rwanda to become in
ICT hub in the region




                                      20
Although the NICI II is mostly on Infrastructure phase, GoR
recorded a good number of achievements.
                                 NICI 2010 Implementation progress


                                                             11%
                                      24%


                                               Implemented
                                               Under implementation
                                               Have not started



                                                              65%


     Source: RITA, Mid-term Evaluation of the NICI 2010 Implementation for RITA, December, 2008
                                                      21
 Through NICI program, most of activities are now based on
                        E-Sector

                    E-Health:                                           E-Education
- An open-source Medical Records System that tracks
patient-level data
                                                         - One Laptop per Child project: 100,000
- TracPlus and TRACnet – Monthly monitoring of           computers distributed to different primary
infectious diseases including HIV/AIDS, TB, and          schools
Malaria
                                                         - E-Schools in secondary school
- Telemedicine – Information and communication
technology (ICT) used to deliver health and healthcare   - Regional ICT Training and Research Center
services                                                 (RITC)

- Mobile e-Health- use of mobile technology in           - E-Learning
improving health delivery in Rwanda
                                                         - Distance Learning
- Health Management Information Systems (HMIS) –
systems      that    integrate     data     collection   - Rwanda Education and Research Network
processing, reporting, and use of the information for
programmatic decision-making.                            - GIS, Rwanda Development Gateway
Through NICI program, most of activities are now based on
                   E- Sector (Cont’d)



                                                         E-Agriculture
            E-Government

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


                Ministry in Charge of
              Science, Technology and
                     Research




              The development of
              ICT sector needs
RDB/RITA      cooperation of these         RURA
              institutions.




              Ministry of Infrastructure
Although the country witnesses a good number of challenges, the
opportunities are also considerable and the future is promising
                                                     ICT SWOT Analysis


                        STRENGTH                                                          WEAKNESSES
     Strong political will in support of ICT                           Lack of necessary technical and professional level of
     Existing of National ICT Policy, NICI                              human resources
                                                                        Insufficient of electricity which is a prerequisite to the
     ICT sector budget is on par with OECD countries at
                                                                         ICT accessibility
      1.6 percent, far above the African average                        Inadequate financial resources
     Smallness of the countries would facilitate ICT                   High cost of communication in comparison with
      Network infrastructure                                             neighboring countries
     Strong             Institutional           organization           Lack of awareness about ICT and the benefits of e-
      (RDB/RITA, MINISTR, RURA, etc.                                     government in both urban and rural areas
     ICT is the most attractive in terms of Investment                 Weak private sector
                                                                        Existing of high rate of illiteracy
     E-Government and E-Governance


                     OPPORTUNITIES                                                            THREAT
     Regional Communication Infrastructure Project (RCIP)
     Kalisimbi Project                                                 Existing of strong competition in the region. Each EAC
     Kigali Metropolitan Network and Wibro Mobile Wimax                 member is aiming to become in ICT hub in the region.
      Technology                                                        Potential ICT crime and difficult to control it
     Rwanda National Backbone Project                                  Loss of job due to ICT application
     Rwanda is integrated to the EASSY Project
     National Data Center
     Regional interconnectivity (MTN Rwanda, MTN
      Uganda, Safaricom, Vodacom, Com Burundi
                                                                25
The implementation of the program requests a particular attention
of certain measures.




 More     Cooperation     with                                     Capacity building and
 stakeholders including Public-                                    training: ICT Skills, Training
 private Partnerships in ICT                                       and Awareness
 development

 Development of Network                                            Retention     policy for
 infrastructure technologies                                       trained staff with high
 especially in rural area                                          skills in ICT

                                  Dissemination of information
 Basic infrastructure needs a     and research related to ICT in
 rapid improvement as a           order to share experiences       Investment in terms of
 prerequisite      to     ICT     and to avoid duplication and     softwares production and
 development                      waste of time.                   their commercialisation
“It is expensive to built a road, but not to built it is
                  more expensive”
                      Italian Proverb
Thank you for your Attention

								
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