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Uganda Investment Authority (UIA) FUTURE OF ICT & THE SERVICES SECTOR & ITS IMPLICATIONS FOR THE KAMPALA INDUSTRIAL BUSINESS PARK (KIBP). Kafu Hall, Serena Conference Center 6 th Nov. 2006 By Ignatius Kakembo-Ntambi CEO, Latest Technology International Limited Tel: 041-267 974/ 0772-436 561

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Uganda Investment Authority (UIA)FUTURE OF ICT & THE SERVICES SECTOR & ITS IMPLICATIONS FOR THE KAMPALA INDUSTRIAL BUSINESS PARK (KIBP)

Kafu Hall, Serena Conference Center

6th Nov. 2006

By Ignatius Kakembo-Ntambi

CEO, Latest Technology International Limited

Tel: 041-267 974/ 0772-436 561

Email: [email protected][email protected]


Background
Background

  • The KIBP - An intelligent government intervention into business processes in the selected 6 business clusters.

  • Objective: To identify the infrastructural needs of the ICT & Services sector & other support needed from government for the sector to emerge.

  • The challenge: What are the most appropriate government interventions (non-financial!) to enable the identified 6 sectors emerge?

  • Members: Invited to debate and identify enablers to satisfy the demands of the businesses to facilitate their emergence.


Introduction
Introduction

  • ICT is an industry in its own right and an enabler of other sectors of the economy.

  • Uganda is Land-locked, not e-locked.

  • Today’s digital watch has more processing power than all the computers of the 1950’s put together!!!


Ict policy 2004
ICT Policy (2004)

  • Government recognises the important role played by ICT & is commitment to champion the development & use of ICT in Uganda

  • Vision – National development driven by efficient utility of ICT

  • Goal – Achieve quantifiable impact throughout Uganda within 10 years

  • Objectives – 14 Policy objectives


ICT Master Plan for e-governance (by Mega-Tech – Aug’06, funded by US Trade & Dev Agency) 1. Foundation - Establish Foundation (2006-07)

  • Establish NICTS as Program Management Office for ICT

  • Establish Agency Counterparts

  • Define and approve target architecture

  • Establish coordinated budgeting and capital planning processes


Cont 2 adoption drive adoption and utilization 2008 09
(Cont.)2. Adoption - Drive Adoption and Utilization (2008-09)

  • Transition to target architecture

  • Implement/Maintain Common Solutions

  • Promote and cultivate technical staff


Cont 3 transformation realize government wide transformation 2010 2011
(Cont.)3. Transformation - Realize Government Wide Transformation (2010-2011)

  • Extend network (MPLS)

  • Expand ICT solutions

  • Pursue Additional Collaboration Areas identified in National ICT Strategy

    What is on the Ground?


What is on the ground
What is on the ground?

  • There was an attempt thru the World Bank sponsored Infrastructure Agenda Project to estimate the no. of PCs in use in Uganda in 2002.

  • Could be 50K or more today!!(?). There is need to establish the current level of computerisation in the country.

  • E-government study established those in govt in 2005 at approx 17K!

  • Private sector esp. Financial, leisure & insurance have computerised many of their operations!


COMMUNICATIONS SECTOR COMPARATIVE FIGURES FOR THE PERIOD DECEMBER 1996 TO JUNE 2006 (UCC Website, comperative figures for PCs not available)


Who are the major players in the ict sector in uganda
Who are the major players in the ICT Sector in Uganda? DECEMBER 1996 TO JUNE 2006

  • Government for Policy, Legal & Regulatory Frame works, manpower, etc

  • National Regulators (UCC, NPA, NITA, BC, IMC)

  • UIA for Investment and ICT Strategic Intervention Programs

  • UNCST




  • Courier Services Providers development

  • National Postal Services Operators

  • Networked Society

  • Computer Systems Suppliers (hardware & software vendors)


Regulatory framework investment climate issues
Regulatory Framework & Investment Climate Issues development

  • Zero taxes incl. VAT on import of some ICT equipment

  • Tax exemption needs to be extended to all ICT equipment

  • What more?


Industrial clustering the theory
Industrial Clustering: The Theory development

  • No coy captures all the economic benefits of its innovation process;

  • “Spillovers” can be captured by other coys;

  • Geographical proximity of coys increases the potential of capture; and

  • A supportive local infrastructure nurtures the process.


Ict services sector cluster is knowledge based
ICT & Services Sector Cluster is Knowledge-Based development

  • Could be:

    • region(Silicon Valley, USA)

    • technopole(Ottawa, Canada)

    • industrial research park(Hsinchu, Taiwan)

    • business & industrial promotion (India et al)

  • Common features:proximity and linkages among the players.


Operational units within the ict services sector cluster
Operational Units within the ICT & Services Sector Cluster development

  • Technology Transfer

  • Business Development & Market Enabling

  • Incubation Center

  • IT Center for Industry

  • Research & Development

  • Specialised Programs set up with technology & business partners like centers of excellence for computer security, database technology competency center, software standards, etc

  • Technical & business infrastructure including office space


Overall activities of the ict services sector cluster at the kibp
Overall Activities of the ICT & Services Sector Cluster at the KIBP

  • Data Entry, Call Centre & Software process improvement

  • Market enabling: visits, networking functions, missions

  • Business match-making

  • Funding coordination (thru venture capital investor, angel investors, banks, etc.)

  • Business and legal information service

  • Back Office operations & Software start-up incubation


  • To nurture technology ideas into commercial successes the KIBP

  • To provide workspace & supportive environments to ICT entrepreneurs at startup & during early stages of their businesses

  • To enlist support from successful business people to act as mentors, judges, instructors, etc to new start-ups.



Support of specific local strengths and assets
Support of Specific Local Strengths and Assets the KIBP

  • Technological strengths (universities, government research institutions and major firms);

  • Local market strengths (e.g. government procurement, banking); &

  • Social, cultural and entertainment infrastructure are important assets because skilled people are ‘Foot-Loose’ and migrate to areas with good quality of life.


Components of a successful ict services cluster
Components of a successful ICT & Services Cluster the KIBP

  • 1. ICT Champions are Important that have Entrepreneurial Drive

    • Central to firms and cluster development;

    • Individuals whether they are growing firms or in supporting organizations and

    • Where it is weak clusters stagnate.


Components of a successful ict services cluster cont
Components of a successful ICT & Services Cluster the KIBP(Cont)

  • 2. Funding – Need Various Sources of Financing

  • Full spectrum of funding instruments is needed;

  • Angel and venture capital and government funds at the start-up phase; and

  • Debt/equity instruments for the growth where $1 of working capital is needed to support $1 of sales.


Components of a successful ict services cluster cont1
Components of a successful ICT & Services Cluster the KIBP(Cont)

  • 3. Information Networks which can be:

  • Informalwhere the focus is on the transfer of tacit knowledge

  • Formal(e.g. ICT Industry Associations, Chambers of Commerce, Govt institutions)

  • Where such structures are weak clustering suffers


Components of a successful ict services cluster cont2
Components of a successful ICT & Services Cluster the KIBP(Cont)

  • 4. Educational & Research Institutions

  • Necessary to provide skilled people and technological expertise;

  • But, not sufficient for success unless there are strong linkages to industry (e.g. Silicon Valley); and

  • Where linkages are weak clustering stagnates


Components of a successful ict services cluster cont3
Components of a successful ICT & Services Cluster the KIBP(Cont)

  • 5. Staying Power

  • It can take 10 (+) years for a cluster to reach maturity;

  • Growth can be supported through sustained government support; and

  • Growth can also be accelerated by attracting investment by multinational companies.


Vision of the kibp for the ict services sector
Vision of the KIBP for the ICT & services sector the KIBP

To put in place a sustainable 1st rate facility that supports entrepreneurs to create world class ICT services as well as make ICT an enabler for the other sectors in the Ugandan economy.


What kibp can bring to the ict services sector
What KIBP can bring to the ICT & Services Sector: the KIBP

  • Provide a facility for ICT business incubation for export-oriented ICT firms in Uganda for data entry, call centres, and software development.

  • Improve quality standards of local ICT companies to international levels-through software process improvement frameworks.

  • Promote transfer of relevant technologies for the software industry - directed at professionals and management levels.


  • Promote capability building for mature companies and incubation of new start-up ICT entrepreneurs.

  • Promote new market opportunities for local software businesses at domestic and international levels, including business match-making, collaboration, finding new market channels & funding sources.

  • Promote use of IT, especially through use of appropriate software, in all sectors of the economy to increase productivity and competitiveness


Facilities required for the ict services sector in kibp
Facilities required for the ICT & Services Sector in KIBP incubation of new start-up ICT entrepreneurs.

  • Intelligent Building with High Speed Broadband Internet connectivity

  • Continuous Power supply on 24x7 basis (solar, wind)

  • Fully enabled Incubation & marketing functionality

  • Design KIBP as an intelligent facility with Broadband Internet availability ‘everywhere’

  • Provide meeting rooms/ conference facilities, entertainment, sports, etc


Conclusion
Conclusion incubation of new start-up ICT entrepreneurs.

  • Success of ICT & services cluster is based on private sector’s (both entrepreneurs and vendors) continuing support of its operations

  • The KIBP will provide the initial experiences for the govt in getting directly involved with hitech niche areas of the ICT industry. It will provide a very good basis for evaluation to measure the performance of its many roles.

  • This will enable further focusing of ICT services not only for export services but also in addressing the needs of local businesses, industries & agriculture especially the 6 key clusters present in KIBP.


Conclusion cont
Conclusion (cont.) incubation of new start-up ICT entrepreneurs.

  • On successful implementation of KIBP, there will be opportunities for duplication of a similar effort in other parts of Uganda for the different sectors.

  • The ICT Cluster will get software and other service providers involved deeper and enable faster growth and competitiveness of other business sectors in Uganda.

  • Will enable the government to understand the business needs of the sector and be able to come up with appropriate responses in a timely fashion.


Finally
Finally incubation of new start-up ICT entrepreneurs.

Thank you & good Brainstorming!


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