Ntale Peter Dithan - Empirical Presentation on Rwanda's Ict Sector

8/8/2019 Ntale Peter Dithan - Empirical Presentation on Rwanda's Ict Sector

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EMPIRICALPRESENTATION OF

RWANDAS ICT SECTOR.

NTALE PETER DITHAN

MSC.MARKETINGMAKERERE UNIVERSITY BUSINESS

SCHOOL

Email : [email protected]

Cell # +256 782 914570.


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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 onclear and defined program

EDPRS, 2012

MDGs, 2015

VISION 2020

G

oodGove rn

an

ce

anda

Capa

ble

State

HRDand

K

nowledge b

ase

d

Econo

my

A

Priv

atesector

-

ledEc

onom

y

Infras

truct

ure

Developme

nt

Produ

ctive

and

M

arketori e

nted

Agric

ulture

Regionala

nd

Internation

al

Econo

mic

Integratio

n

ICT is across-cuttingarea ofVision2020


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ICT is an engine of economic performancefor countries

Reduction of transaction costsIncrease productivity

New trade opportunitiesAccess to knowledgeIncrease competitionBetter communication

The ICT-induced changes aretransforming the rules ofcompetition and giving rise to newtypes of competitive strategies:innovation-driven competition, time-based competition; masscustomization; lean manufacturing,and demand-driven, built-to-orderproducts (Fine, 1998).

ICT can also facilitate the rapidgrowth for foreign directinvestment (FDI) allowing globalbusiness management along thewhole supply-chain througheffective information andcommunication networks.

A reduction of transactioncosts and times can helpdeveloping countries to takeadvantage of the opportunitiesresulting from tradeliberalization.

ICT has drastically cut long-standing obstacles tocommunication: time anddistance. Newcommunication technologiesallow companies to sourceinputs independent of

location.


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ompe veness re ers o a coun ry scapacity to exploit Information andcommunication technology in order toeffectively participate in the global

information economy.

5

ICTCompetitivene

ss

ICTInfrastructure

ICTEnvironment

ICT LawsHuman

Resources


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35% oftotal FDIin SSA wasfromtelecom

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

and investments in SSA are mostlyconcentrated on ICT

Source: World Bank WDI (2007)


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All over the world, the Mobile Phonewitnesses a spectacular penetration rate inone decade

Global ICT Development, 1998-2008

Source: International Telecommunication Union, 2008

0

10

20

30

40

50

60

70

199

8

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

Per100

in

habitant

Fixed telephone lines

Mobile cellular telephone subscriptions

Internet users

Fixed broadband subscriptions

Mobile broaband subscriptions


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As in many other countries, Rwanda recordeda spectacular increase rate of Mobile phone inone 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 subscribers

Rural 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 users per 100inhab.

Mobile subscribers per 100inhab.

Fixed phone per 100inhab.

ICT Penetration in the EACCountries, 2008

In comparison with its counterparties of theEAC, 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 evenin many cases decreasing. Rwanda remains onthe 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

d M bil h t ti i i


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. and Mobile phone penetration is growingrapidly in all countries and Kenya is above theAfrican average.

11

Mobile phone penetration in EAC Countries, 2000-2008

Keny

Rwand

Tanzani

Burun

Ugand

Afric

0

5

1 0

1 5

2 0

2 5

3 0

3 5

4 0

4 5

1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9


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Internet is also growing significantlyparticularly in Uganda.

12

Internet penetration rate in EAC Countries, 2000-20008

Source: ITU, 2008


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Mobile phone and internet penetration ratereached more than 1000% in EAC countries inone decade

13

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

2 1 7

1 0 0

2 6 9

9 8 0

5 1 52 0 2

0

2 0 0 0

4 0 0 0

6 0 0 0

8 0 0 0

1 0 0 0 0

1 2 0 0 0

Bu r u n d iK en y aR w a n d aTa n za n i aU ga n d aA f r i c a

9 1

2 6 3

5 0 0

1 0 4

4 9 0

1 2 6

0

1 0 0 0

2 0 0 0

3 0 0 0

4 0 0 0

5 0 0 0

Burun d iKen yaRw and aTanzan iaUgandaAfr ica

s networ n rastructure s current y


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s networ n rastructure s current yconcentrated in Kigali City, ICT penetration rateis also higher in Kigali in comparison withProvinces

14

0 2 4 6 8 10 12 14 16

Kigali City

Southern Prov.

Western Prov.

Northern Prov.

Eastern Prov.

Total Total HH with phoneFixed & M obile PhonM obile PhonesFixed Phones


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Due to ICT market liberalization, the monopolyspirit is broken with participation of differentcompanies to the market.

Number of telecom network operators and their respectivenumber of subscribers

Source : RURA,December 2008

Service Licensed Operators Number ofSubscribers Market share(%)

Fixed Telephony RwandatelMTN RwandacellArtel International*

16,770820

99.5%0.5%0%

Mobile Telephony MTN RwandacellRwandatel

1,158,674163,963

87.6%12.4%

Internet ServiceProvision

RwandatelISPAMTN RwandacellNew ArtelAltech Stream RwandaValue Data Rwanda*Star Africa Media*Greenmax*Augere Rwanda*Comium*

4,18767

4,0211511900000

49.5%0.79%47.6%1.78%0.22%

0%0%0%0%0%

Pay-TV GTVStar Africa Media

Tele 10

6175,105

1,543

8.49%70.26%

21.23%

h k i


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Basic service per minutelocal call

2004 2005 2006 2007 2008 2009proj.

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 100Mobile prepaid usage tariffs-Rwandatel

55 55 80 80

Mobile phone handset cost 90,000 12,000 12,000

InternetFixed 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

190,000 190,000RURA, 2009

ICT Basic services and tariffs

The more ICT Market enters into opencompetition, the more consumers are gettingbetter services.

The increase inmobile phoneservices has

beenaccompaniedby decrease ofcosts ofconnectionsand handsets


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ICT remains the most attractive area forForeign Direct Investment

17Source: RDB/RIEPA, 2007

Rwandas Investment by sub-sector, 2006

o s en as a s gn can mpac o oc o


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o s en , as a s gn can mpac o oc oEconomic Performance to the country. This trendhas also a positive impact to the economicgrowth

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

ICT Sector Contribution to GDP, 2005

Source: TMG, Inc., 2008

ICT Expenditure, 2005-2012

Source: MINECOFIN, 2009

In the framework of Vision 2020 GoR is committed to use


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In the framework of Vision 2020, GoR is committed to useICT in most of its activities in order to facilitate the rapidsocio-economic development

1.Education2. 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

AgriculturalBased

Economy

Knowledge

BasedEconomy

By 2020

KigaliMetropoli

tanNetwork

Kalisimbi

Project

E-GovernmentNational

Data Center

NICIIII

NICI INICI

IINICIIV

EASSYProject

Rwanda

NationalBackbone

Project

RegionalCommunica

tionInfrastructure Pro ect

KigaliICT Park

e ro ec o w c wan a s
http://www.rwandagateway.org/article.php3?id_article=8459&lang=


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e ro ec o w c wan a sintegrated will contribute significantly toRwandas integration to the world economy.

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Theimplementation ofthis project willallow Rwanda tobecome in ICT hubin the region


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21

Source: RITA, Mid-term Evaluation of the NICI 2010 Implementation forRITA, December, 2008

Although the NICI II is mostly on Infrastructurephase, GoR recorded a good number ofachievements.

NICI 2010 Implementation progress

Through NICI program most of activities are


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Through NICI program, most of activities arenow based on

E-SectorE-Education

- One Laptop per Child project:100,000 computers distributed todifferent primary schools

- E-Schools in secondary school

- Regional ICT Training and ResearchCenter (RITC)

- E-Learning

- Distance Learning

- Rwanda Education and ResearchNetwork

- GIS, Rwanda DevelopmentGateway

E-Health:

- An open-source Medical Records Systemthat tracks patient-level data

- TracPlus and TRACnet Monthlymonitoring of infectious diseases includingHIV/AIDS, TB, and Malaria

- Telemedicine Information andcommunication technology (ICT) used todeliver health and healthcare services

- Mobile e-Health- use of mobile technologyin improving health delivery in Rwanda

- Health Management Information Systems(HMIS) systems that integrate datacollection processing, reporting, and use ofthe information for programmatic decision-making.

Through NICI program most of activities are


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E-Government

- Fiber optic Installation,connectivity of a good number ofschools, hospitals and otherpublic institutions

- Public Access Channels (12 Tele centers- Desks are alreadyoperational)

- Kigali ICT Center

- Smart National Cards, ID, E-business

E-Agriculture

- Agricultural ManagementInformation System (AMIS) is an

exchange platform for allstakeholders of the agricultural andlivestock sector

- E-soko project seeks to empowerfarmers to enable them make moreinformed market pricing decisionsand ultimately more successfulfarming

Through NICI program, most of activities arenow based on

E- Sector (Contd)


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Ministry in Charge ofScience, Technology

and Research

RDB/RITA RURA

Ministry of

Infrastructure

Institutional arrangement

The development of

ICT sector needs

cooperation of these

institutions.


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The implementation of the program requests aparticular attention of certain measures.

Capacity building andtraining: ICT Skills, Training Awareness

Basic infrastructureneeds a rapidimprovement as a

prerequisite to ICTdevelopment

Development of

Network infrastructuretechnologies especiallyin rural area

Investment in termsof softwares

production and theircommercialisation

More Cooperation withstakeholders includingPublic-privatePartnerships in ICTdevelopment

Retention policy for

trained staff withhigh skills in ICT

Dissemination ofinformation andresearch related to ICTin order to share

experiences and toavoid duplication and


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It is expensive to build a road, butnot to build it is more expensive

Italian Proverb


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Thank you for your Attention

Ntale Peter Dithan - Empirical Presentation on Rwanda's Ict Sector

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