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ICT PENETRATION AND USAGE IN ETH

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					ICT PENETRATION AND
  USAGE IN ETHIOPIA:
   BASELINE STUDY


    MULAT DEMEKE
     TADESSE BIRU
    Addis Ababa University
   Department of Economics
Content
I.     Objectives
II.    Data
III.   Infrastructure
IV.    ICT penetration and usage
V.     ICT industry
VI.    Summing up
I. Project Objectives
General

Collect and analyze the information the
country needs to participate in a global
information economy.
Project Objectives (cont’d)
Specific
 Track the status of ICT-infrastructure related
  to telephony, Internet, computers, television
  and radio.
 Examine the extent of human resource
  development and institutional capacity in the
  area of ICTs.
 Assess ICT penetration and usage in three
  different sectors: education, health and public
  administration.
 Review the status of the ICT industry.
II. Data Generating Methods

Two major approaches:
 Secondary data (related to ICT
  infrastructure, etc)
 Survey of institutions/firms and
  individuals using structured and pre-
  tested questionnaires.
Survey Areas
Purposive selection of five survey sites:
 The federal capital: Addis Ababa, and
 Four major regional towns (capitals):
    Awasa
    Bahir Dar
    Mekele
    Nazareth
  Summary of sample size (Addis
  Ababa)
   Education Sector (Total)

      Samples                           Planned        Contacted
Schools/Colleges/Faculties/
               Departments                    86       70     (81.4%)
Students                                    1030       969    (94.0%)
Teachers/instructors                         400       374    (93.5%)
IT professionals*                            136        35    (25.7%)


 * Only 35 IT professionals were found in the sample educational institutions
  Summary of sample size (Addis
  Ababa)
   Health Sector (Total)

      Samples                            Planned Contacted
Health Facilities                             32          29   (90.6%)
Health Professionals                          68          68   (100%)
Lab Technicians                                7           7   (100%)
Pharmacists                                    5           5   (100%)
IT professionals*                             14           4   (28.6%)


 * Only 4 IT professionals were found in the sample health facilities
   Summary of sample size (Addis
   Ababa)
   Public Administration (Total)

       Samples                           Planned Contacted
Ministries                                      8          8   (100%)
Other Public Institutions                      10          8   (80%)
Public Employees                               36         31   (86.1%)
IT professionals*                              36         20   (55.6%)


 *Relatively larger number of IT personnel were found in public institutions.
  Sample Size by Category: Addis
  Ababa
 ICT Industry (total)
           Sample Types              Planned     Contacted

Eth. Telecom. Corporation*              1      1
Private Computer Dealers**             32      26 (81.3%)
 (Training, Sales, Web-site Dev’t,
  Networking, Software Dev’t,
  Consultancy, Assembly &
  Maintenance,…)
Short-term computer training           20      17 (85.0%)
providers**
              Total                    53      44 (83.0%)
   Summary of sample size (Addis
   Ababa)
   Regulatory and Licensing Institutions
    (total)
     Sample Institutions         Planned Contacted
License/permit   issuing           5    5 (100%)
 Institutions*
Related Public Institutions**      6    6 (100%)
  Summary of sample size
  (Regional Towns)
   Education Sector (Total)

       Samples                          Planned Contacted
Schools/Colleges/Faculties/
               Departments                    33        32    (97.0%)
Students                                     210        175   (83.3%)
Teachers/instructors                         127        120   (94.5%)
IT professionals*                            66          2    (3.0%)

* Only 2 IT professionals were found in the sample education institutions
   Summary of sample size
   (Regional Towns)
   Health Sector (Total)

      Samples                            Planned Contacted
Health Facilities                             28         25    (89.3%)
Health Professionals                          32         23    (71.8%)
Lab Technicians                                4          4    (100%)
Pharmacists                                    5          4    (80%)
IT professionals*                              4          0


 * NO IT professionals were found in the sample health facilities
   Summary of sample size
   (Regional Towns)
    Public Administration (Total)

        Samples                           Planned Contacted
Regional Bureaus                               24         23 (95.8%)
Public Employees                               48         31 (64.6%)
IT professionals*                              24          3 (12.5%)


* Only 3 IT professionals were found in the sample education institutions
 Summary of Sample Size
 (Regional Towns)
  ICT Industry
      Sample Types             Planned   Contacted

Private Computer Dealers
            and                  20      18 (90.0%)
Short-term computer training
providers
   Summary of sample size
   (Regional Towns)
   Regulatory and Licensing Institutions

      Sample Institutions       Planned Contacted
License/permit issuing
Institutions & related Public      8    8 (100%)
Institutions
III. Infrastructure
   ETC only provider of
    –   fixed
    –   mobile telephone,
    –   facsimile,
    –   Internet, and
    –   telex services.
Infrastructure - Telephone
   Telephone subscribers up
    – by 167.7% from
    – 1987/88 to 2000/01
      • (nearly by 12% per annum)
   But distribution unbalanced
Telephone (cont’d)
Telephone distribution (as of 2001)
                                      ADDIS A.
            1% 0.2% 0.2%              AMHARA
     0.2%
    3%               2%               OROMIYA
   5%
                                      SNNP
 6%                                   TIGRAY
                                      DIRE D.
16%                                   AFAR
                           57%        SOMALI
                                      BENINSH.
      10%                             GAMBELLA
   Telephone (cont’d)
Distribution of pay stations in different regions (as of 2001)


                                 Others
                                 9.47%
                                           Addis Ababa
                        Tigray               5.53%
                       10.19%
                                                         Amhara
                                                         22.42%
                    SNNP
                   14.41%

                                             Oromiya
                                             37.99%


      Note: Others include Dire Dawa, Harari, Gambella, Beninshangul, Afar
            and Somali.
Telephone (cont’d)
Teledensity varies significantly
Addis Ababa     15.4 people/telephone line
     Somali     1935          “
     Country     224           “
      or    4.5 telephones per 1000
                                inhabitants
    Telephone (cont’d)
    Teledensity statistics (by region)
Regions     Pop (‘000) # of tele   Pop/tele Tele/’000 people Density
ADDIS A.*     2495       16251      615.4         65.9        0.0659
AMHARA        16298      29024      561.5         1.9         0.0019
OROMIYA       22354      45358      492.8         2.0         0.002
SNNP          12515      15839      790.1         1.3         0.0013
TIGRAY        3694       13117      281.6         3.6         0.0036
DIRE D. *      318       8592       37.02         27          0.027
AFAR          1216       1002      1213.6         0.8         0.0008
SOMALI        3698       1911      1935.1         0.5         0.0005
BENINSH.       537        669       802.7         1.2         0.0012
GAMBELLA       211        646       326.6         3.1         0.0031
HARARI         160       5009        31.9         31.3        0.0313
ETHIOPIA     63496**    283,683     223.8         4.5         0.0045
   Telephone (cont’d)
    Teledensity statistics (by regional town)
Regions Pop (‘000) # of tele   Pop/tele Tele/’000 people Density
Addis A.    2495     16251      615.4         65.9        0.0659
Bahir D.    232       5016       46.3         21.6        0.0216
Nazareth    333       9141       36.4         27.5        0.0275
Awasa       425       2694      157.8         6.3         0.0063
Mekele      129       6874       18.8         53.2        0.0532
Dire D.     318       8592      37.02         27          0.027
Asayita      59        460      128.3         7.8         0.0078
Jijiga      292       1911      152.8         6.5         0.0065
Assosa       87        669      130.0         7.7         0.0077
Gambela      33        646       51.1         19.6        0.0196
Harari       97       5009       19.4         51.5        0.0515
  Telephone (cont’d)
Classification of telephone subscribers’ lines (as of 2001)

                          Others
                           2%
                                           Business
              Government                     19%
                 12%




                         Residence
                           67%
 Note: Others include embassies, international organizations and NGOs.
    Internet
 Introduced in 1996/97 with 1042 subscribers
 Increased to 6487 in 2002 (by 5 fold)
 Coverage of Internet services expanded to
  12 major towns
 96% of the total subscribers are from Addis
  Ababa
 subscribers per 1000 people
       2.5   Addis Ababa
      0.24   other towns
or    0.1   country as whole
  Internet (cont’d)
Internet subscribers per 1000 population (as of Mar 2002)
            3
          2.5
            2
          1.5
            1
          0.5
            0




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  Ad
Local Web-sites
   Increased from 68 in 2000/01 to 88 in
    2001/02
       • (by29.4%)
   and it is projected to rise to 100 in
    2002/03
       • (by 14%)
    Mobile Telephone
 Started in 1998/99 with 6740 subscribers
 Increased to 27,532 subscribers in 2000/01
 Coverage: Addis Ababa and two nearby towns
  (Debre Zeit & Nazareth)
 Distribution:
     Private sector: 91%
            (71% individuals & 20% businesses)
    Government         4%
    International Org. 5%
Computers, TV and Radio
Stock of computers, TV and Radio
 14,000,000
                                       11,689,631
 12,000,000
                                    18.41
 10,000,000
  8,000,000
  6,000,000
  4,000,000
                            2.8
               0.12
  2,000,000               367,000
              75,000
         0
              Computers      TV sets          Radio
  IV. ICT penetration and usage

Access to basic ICTs
% of institutions reporting

                            Fixed line    Internet    Web-
               Computers
                           Telephones    connection   Sites
Education
                 81.6         89.3          51.5      18.9
(103)
Health
                 33.3         96.3          13.0       1.9
(84)
Public
Institutions     100.0       100.0          69.3      22.2
(39)
   ICT penetration and usage

Uses of computers (reporting institutions, %)

               Office    CD-Rom     Personnel
               tools      search     Admin.
Education      85.7       26.2         46.4
(84)

Health (54)    61.1       11.1         27.8
Public
Institutions   94.9       17.9         41.0
(39)
 ICT penetration and usage

Personal ownership of some ICT items at
 home (reporting cases, %)
                        Fixed line             Internet
            Computers              Local TV                Radio
                        telephone             Connection
Teachers      10.9        42.0      65.9         2.5       85.3
Students      19.2        74.3      81.6         12.2      92.0
Health
              11.7        78.4      88.3         3.5       86.5
Profess.
Public
              12.6        55.3      78.9         5.8       84.5
employees
   ICT penetration and usage

Computer & Internet Usage & Places of
Access: % reporting
                                                Access Internet at
            Computer    Using      Using     Work place/    Private
             literate computers   Internet    Learning     computer
                                             institution    centers
Teachers      42.8      38.4       26.2         61.1         37.4

Students      48.5      48.5       19.1         29.4         41.7
Health
              38.7      33.3       26.1         34.4         42.8
Profess.
Public
              81.3      72.8       44.7         82.6         37.0
employees
        ICT penetration and usage –
        Further details on educational
        inst
                                  Fixed line    Internet    Web-
                     Computers   Telephones                 Sites
                                               connection
        Prim & Sec
(19)    Government      47          100             5         0
(12)    Non-govt        100         100            42         0
AA
        Tertiary
(24)    Government      100          96            88         17
(15)    Non-govt        87           87            87         27
        Prim & Sec
(9)     Government       56         89             11         0
(10)    Non-govt         80         100            40         0
Reg Tertiary
(10)
(4)  Govt               90          30             50          0
     Non-govt           100         100            75         50
(103)    Total         82 (84)     89 (92)       52 (54)    19 (10)
     ICT penetration and usage –
     Further details of health
     institutions

                                      Fixed line Internet    Web-
                         Computers   Telephones connection   Sites
        Government
(4+4)   Hospitals &         50          100         25        0
        Health Centers
AA
        Private
(1+     Hosp & Clinics      44          100         19        6
15+5)   Pharmacies          60          80          20        0
        Government
(3+5)   Hospitals &         13          100         13        0
        Health Centers
Reg
        Private
(1+13   Hosp & Clinics      14          93          0         0
+3)     Pharmacies          33          100         0         0
  ICT penetration and usage –
  Further details in public
  institutions

                            Fixed line    Internet    Web-
               Computers
                           Telephones    connection   Sites
Addis
                  100         100            94        33
Ababa (16)
Regional
                  100         100            52         8
towns (23)

(39)   Total    100 (39)     100 (39)      69 (27)    22 (6)
   ICT penetration and usage
   Use of computers by inst.
Uses of computers (reporting cases, %)


               Office   CD-Rom    Personnel
               tools     search    Admin.
Education      85.7      26.2       46.4
(84)

Health (54)    61.1      11.1       27.8
Public
Institutions   94.9      17.9       41.0
(39)
   ICT penetration and usage –
   use of internet by inst.

                                      Downloading/      Info on
               E-mail   Info search                  procurement
                                       Uploading     of materials

Education
               100.0       86.8           71.7           41.5
(54)
Health (6)      71.4       57.1           42.9           28.6
Public
Institutions   100.0      100.0           70.4           14.8
(27)
ICT penetration and usage –
use of websites by edu. inst.

                      %      Strengthen     Provide   Provide
                   reporting contact with   distance  info about
                   web-sites educ inst’ns   education institution
      Prim & Sec
      Government      0            0            0          0
      Non-govt        0            0            0          0
AA
      Tertiary
      Government   16.7 (4)     50 (2)          0        52 (2)
      Non-govt     26.7 (4)     100 (4)         0        75 (3)
      Prim & Sec
      Government      0            0            0          0
      Non-govt        0            0            0          0
Reg   Tertiary
      Govt             0           0            0          0
      Non-govt       50 (2)     100 (2)       50 (1)       0
          Total     19 (10)      80 (8)       10 (1)     50 (5)
V. ICT Industry
   62 firms engaged in ICT related businesses were
    contacted.
   Employed 693 workers (80% IT professionals)
   Areas of operation: Firms engaged in
     Short-term training                79%
     Consultancy services               55%
     Computer networking                60%
     ICT HW maintenance & support       66%
     ICT HW & SW sales                   65%
     HW assembly and SW dev’t            42%
    ICT Industry (cont’d)
Those engaged in ICT short term training
 Trained 16,715 persons so far
    – 51% females
    – 85% of all trainees from Addis
   Highly demanded areas of training (96%) are:
    –   Introduction to computers
    –   Computer maintenance &
    –   trouble shooting
    –   networking
ICT Industry - laws, regulations
& procedures
Major problems identified:
 Problems related to tax
 Copyright and customs regulations
 High collateral requirements
 Negative attitude of tax inspectors
 Absence of laws relating to hackers &
  virus
 Extensive contraband goods in the market
    ICT Industry- Regulatory
    Framework
 Government monopoly in telecommunication
  adversely affecting ICT infrastructure
 No standards relating to ICT services
   recently ETA has been mandated
 Eth has no national ICT strategy or policies so
  far
  adversely affected efficiency & dev’t of the
     industry
VI. Summing up
   very low teledensity.
    – only 4.5 telephone lines per 1000
      inhabitants.
 Main lines satisfy only 65% of the
  expressed demand
 Proportion of waiting list (relative to
  the main line connections)
    – was 55% in 2000/01.
Summing up …
   Teledensity varies significantly by
    region:
    – Number of people per main telephone
      line ranged
       • from 15.4 in Addis Ababa to
       • 1,935 in Somali.
   Addis Ababa accounts for 55% of the
    installed capacity.
Summing up …
   ICT penetration and usage in schools/
    colleges and health facilities varies
    – by type of ownership (government vs. non-
      government).
 Government owned institutions lag behind
 Regional towns at a disadvantage relative
  to Addis Ababa.
    – Access to basic ICTs lower among employees
      residing in regional towns
Summing up …
   Introduction of hardware and
    software relatively easy.
    – Effective use is difficult and requires
      transformation in
      • internal organization,
      • technical capabilities and
      • resource management.
Summing up …
 Computers used mainly as office
  tools
 Many administrators unaware of the
  wider application
    – accounting,
    – finance,
    – human resource management,
    – database management,
    – procurement of goods and services,
      etc.
Summing up …
   Poor quality of education a major problem
    in Eth.
    – Very large class sizes
    – Poor teaching facilities
   ICTs a major role in
    – higher quality and
    – wider coverage of education.
   High-speed communication networks
    – to obtain better quality reference materials.
Summing up …
 Possible to increase supply of well-
  trained teachers
 Teachers and students with access
  to Internet
    – perform better than those without
      access.
   On-line learning
    – allows full flexibility regarding the time
      and place of study.
Summing up …
   Health sector constrained by
    – budgetary limitations and
    – shortage of personnel
   ICT applications to support
    – efficient exchange of information
      • between health professionals,
    – thus saving time and money.
Summing up …
   Public services automated with the
    objective of
    – improving a variety of services and
    – ensuring transparency.
   Need to widen the use of ICT (e.g.
    Website)
    – Reduce the cost of public administration and
    – solicit feedback from citizens and the business
      community.
Summing up …
   Consensus regarding major constraints
    – High cost of computer most important
      problem
       • followed by
    – poor telecommunication infrastructure,
    – lack of accessories (necessary
      equipment) and
    – high Internet service charge
Summing up …
   Need to encourage
    – establishment of a computer assembly
      and/or
    – reduce tax/duty rates
   Liberalize telecommunication
    industry necessary
    – To provide competitive service at lower
      service charges.
Summing up …
 A digital divide along income and
  educational level
 Logistic regression has confirmed
    – ICT usage positively and significantly
      influenced by
      • income and
      • education.
Summing up …
   Increasing access to ICTs requires
    – Overcoming poverty,
    – increasing awareness and
    – reducing costs
   Success in PRSP critical to
    overcome digital divide
Summing up …
   ICT industry consists of small business
    – Only about 11 employees each.
 Very few engaged in R & D and software
  development.
 But many qualified professionals
 Possible for some firms to work on
    – development of customized software
    – to client specifications for export.
Summing up …
 Low cost of labor a major source of
  comparative advantage.
 Government should support ICT
  companies by
    – improving access to credit and
    – creating an enabling policy
      environment.
Summing up …
   Several regulatory problems of ICT
    – Tax system and customs regulation,
    – Laws to guard against
      • hackers and
      • contraband ICT goods
    – Intellectual property rights to protect
      creators of content
Summing up …
 Government needs to work very
  closely with all stakeholders to
 overcome the deficiencies in the
  legal and regulatory framework
 Ongoing capacity building crucial
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