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Uganda Investment Authority UIA FUTURE OF ICT

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ICT is an industry in its own right and an enabler of other sectors of the economy. ... and be able to come up with appropriate responses in a timely fashion. ... – PowerPoint PPT presentation

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Title: Uganda Investment Authority UIA FUTURE OF ICT


1
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 kakembon_at_yahoo.com/ ikntambi_at_lti.co.ug

2
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.

3
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.
  • Todays digital watch has more processing power
    than all the computers of the 1950s put
    together!!!

4
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

5
ICT Master Plan for e-governance (by Mega-Tech
Aug06, 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

6
(Cont.) 2. Adoption - Drive Adoption and
Utilization (2008-09)
  • Transition to target architecture
  • Implement/Maintain Common Solutions
  • Promote and cultivate technical staff

7
(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?

8
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!

9
COMMUNICATIONS SECTOR COMPARATIVE FIGURES FOR THE
PERIOD DECEMBER 1996 TO JUNE 2006 (UCC Website,
comperative figures for PCs not available)
10
Who are the major players in the ICT Sector in
Uganda?
  • 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

11
  • Public and Private Education Institutions. for
    skills development
  • National Telecom Operators for backbone
    infrastructure and Connectivity. (uganda telecom,
    MTN, Celtel, etc)
  • VSAT International Data Gateway Operators
  • PSP ISPs

12
  • Public Internet Access Providers (Cyber cafes)
  • FM Radio Stations
  • Private Television Stations
  • Private Radio Communications users

13
  • Courier Services Providers
  • National Postal Services Operators
  • Networked Society
  • Computer Systems Suppliers (hardware software
    vendors)

14
Regulatory Framework Investment Climate Issues
  • Zero taxes incl. VAT on import of some ICT
    equipment
  • Tax exemption needs to be extended to all ICT
    equipment
  • What more?

15
Industrial Clustering The Theory
  • 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.

16
ICT Services Sector Cluster is Knowledge-Based
  • 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.

17
Operational Units within the ICT Services
Sector Cluster
  • 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

18
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

19
  • To nurture technology ideas into commercial
    successes
  • 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.

20
  • Formal training (technical and non-technical)
  • Seminars/ conferences/ workshops
  • Exhibition/trade events
  • Excellence/competency centers operation
  • Technology community events

21
Support of Specific Local Strengths and Assets
  • 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.

22
Components of a successful ICT Services Cluster
  • 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.

23
Components of a successful ICT Services Cluster
(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.

24
Components of a successful ICT Services Cluster
(Cont)
  • 3. Information Networks which can be
  • Informal where 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

25
Components of a successful ICT Services Cluster
(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

26
Components of a successful ICT Services Cluster
(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.

27
Vision of the KIBP for the ICT services sector
  • 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.

28
What KIBP can bring to the ICT Services Sector
  • 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.

29
  • 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

30
Facilities required for the ICT Services Sector
in KIBP
  • 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

31
Conclusion
  • Success of ICT services cluster is based on
    private sectors (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.

32
Conclusion (cont.)
  • 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.

33
Finally
  • Thank you good Brainstorming!
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