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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=8/8/2019 Ntale Peter Dithan - Empirical Presentation on Rwanda's Ict Sector
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e ro ec o w c wan a sintegrated will contribute significantly toRwandas integration to the world economy.
20
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