Technology giant Google has announced Sh28 million (R2.5-million) in funding for Nairobi’s tech innovation centre, iHub, and the Kenya Education Network (KENET).

Group sitting in the iHub

Google has announced R2.5-million in funding for Nairobi's tech innovation centre iHub (image: iHub)

Google has announced R2.5-million in funding for Nairobi’s tech innovation centre iHub (image: iHub)

iHub plans to use the funding from the search giant to expand its infrastructure, while KENET says it will continue to “connect educational institutions with a private, affordable high-speed Internet” network.

“We have been partners with Google for about the last two years,” says Erik Hersman, co-founder of the iHub.

“This is just an extension of that, filling niches that the community needs. One of Google’s big drives is to increase the uptake of Internet in Kenya.”

iHub has received Sh12 million of Google’s funding, which Hersman says will be used to expand its infrastructure.

The iHub community also plans to set up a UX testing lab and an “ExchangeBoard Project”, which will display the latest newsfeeds within the tech community. An experimental supercomputer environment to host data-intensive applications is also on the agenda.

Meanwhile, KENET MD Meoli Kashorda said: “We are very happy with the partnership we have with Google to support innovation and technology in Kenya.

“This contribution will help KENET improve the Internet connectivity in six educational institutions in Kenya, leading to increased affordable broadband Internet access by students, faculty and researchers.”

Michelle Togo

A new survey published on Tuesday reveals that as telecom jobs in Africa booms, the continent still lacks skilled workers, calling on universities and governments to do more to boost the output of telecom and IT specialists in Africa.

Landelahni CEO Sandra Burmeister

Landelahni CEO Sandra Burmeister. (image: creamermedia.co.za)

The 2012 Telecommunications Survey, carried out by global Amrop executive search group member, Landelahni Business Leaders, highlights the skills gaps in the African ICT sector.

“Information and communications technology is a pre-condition for socio-economic development and national competitiveness. However, a shortage of key skills is a huge constraint,” Landelahni CEO Sandra Burmeister said in the report.

“Opportunities abound throughout Africa, despite the challenges of poor infrastructure, disparate regulatory environments and ferocious competition. Spending on ICT infrastructure is expected to total more than US$23 billion a year over the next few years. South Africa and the rest of the continent need to skill up to maximise this opportunity.

“(South African) minister of science and technology Naledi Pandor has acknowledged that the telecommunications industry holds promise as the backbone of this country’s economic, industrial and innovative advancement. Similarly, the Green Paper for Post School Education and Training released in January (2012) states that ‘ICT is increasingly becoming a critical ingredient for participation in a globalised world’.”

It also called on governments to do more to boost young people’s ability to enter the fast-paced ICT world with the skills needed to bring Africa into the global technology world.

Joseph Mayton

US-based Carnegie Mellon University has announced the opening of a new regional centre for ICT in Rwanda, aimed at increasing science and technology development across East Africa.

Carnegie Mellon University director in Rwanda Bruce Krogh

Carnegie Mellon University director in Rwanda Bruce Krogh. (image: cms.dyn.bci.tu-dortmund.de)

“Research and development in technology is now a global enterprise and Carnegie Mellon realised that education also needed to be a global enterprise to meet the demands of highly skilled engineers and innovators,” university director in Rwanda Bruce Krogh said.

Krogh said the west was not the sole source of technological breakthroughs anymore, “nor was it the dominant growth market for information and communication technology (ICT)”.

The university said they see East Africa as a beacon for ICT transformation, praising the region’s recent jumps in telecoms and IT infrastructure. Carnegie hopes to assist in continuing this success by bolstering ICT education.

He added that “for the case of Rwanda, there is a business-friendly, pro-ICT development program (Vision 2020) under which nation-wide fiber-optic cables will be installed throughout the country.”

Joseph Mayton

The FCT Agency for Science and Technology (FASTECH) is currently partnering with an international NGO, Junior Achievement, to promote entrepreneurship education in primary and secondary schools in the Federal Capital Territory of Abuja, Nigeria.

Woman holding plaque from Junior Achievement

Yelwa Baba-Ari, FASTECH Director, says their relationship with Nigerian NGO, Junior Achievement, should promote entrepreneurship. (image: file)

The partnership will include setting up clubs and organising entrepreneurship competitions in schools. Yelwa Baba-Ari, FASTECH Director, said yesterday building entrepreneurial skills is part of the agency’s mandate.

“If you expose them to entrepreneurship by the time they finish secondary school, they can assist their parents in paying the school fees,” she said.

“A lot of them are not exposed but this gives them confidence be it in communication or leadership skills and builds confidence in them to face the challenges of the society. We will partner to make sure that the schools become awake to its importance. We will collaborate with you to do competition for the students and to see that we establish clubs in more schools.”

Stressing on the importance of acquiring entrepreneurial skill, Baba-Ari said government in this country was a major employer of labour but now the economy encourages people to be on their own.

Segun Adekoye

Girl on phoneThe use of ICT to strengthen youth employability in the developing world ought to be pursued vigorously. To be clear, ICTs aren’t the only route to improving the employability of youth, but it should be used as a key tool because of the anticipated growth potential and youth employability crisis experienced by most societies in the developing world.

Youth constitute more than half of the world’s population, of which 81 million are unemployed− 7.8 million more than the number in 2007− a disproportionate number as youth only make up a third of the world’s working population. No where is youth employability constraints worse than in the developing world, where over 87 percent of the world’s youth live. This is a huge development challenge. Clearly, a deeper engagement with youth is needed to foster more sustainable futures. That must start with efforts to equip young people, a demographic force, with marketable ICT skills because of the immense employment and wider economic opportunities head.

Barely 15% of the half a trillion dollar global IT-enabled services market, which is expected to treble to between US$1.5 and 1.6 trillion by 2020, has been tapped, according to the World Bank. Developing regions such as Sub-Saharan Africa reap the least rewards from this unprecedented opportunity for economic growth and skilled jobs. The fact that they experience higher youth and overall unemployment levels should serve as an impetus for creating an enabling environment for ICT innovation and expansion. It is a paucity of ICT skills across the continent that cause it to lag so far behind amid rapid growth in the telecoms and services sector. This reduces the potential returns on ICT investment, restricts the quality of service delivered and stifles new investment across a continent in need of rapid and sustained new businesses.

As the World Bank’s flagship ICT initiative for Africa, the New Economy Skills for Africa Program: Information and Communication Technology (NESAP-ICT), puts it: “The lack of skilled manpower is a binding constraint to realizing the potential of the sector. Even India which has 30% of the global labor supply suitable for the industry expects a shortfall of 0.8 to 1.2 million skilled workers for its ITES industry by 2012.” The onus is therefore upon the Sub-Saharan Africa and other developing parts of the world “to boost its “talent” profile so as to benefit from this burgeoning market opportunity”.

That talent profile depends on the nature and quality of training and education that the developing world’s youth are exposed to. It is my view that a range of incentives and curricular reforms are needed to ensure that young people are suitably trained to acquire jobs in the ICT sector and explore entrepreneurial opportunities.

The current mode of education in most developing countries is outmoded. Significant curricular reform is needed, including the creation of advanced ICT curricular modules to supplement and be integrated into basic ICT courses for youth in schools, youth centers and technology hubs. By improving the curriculum in developing countries with enhanced ICT focus in the fashion proposed, skill levels and employability among young people will improve. Furthermore, these employability skills are likely to enable more young people to venture into entrepreneurial activities.

In downtown Ramallah, West Bank, five programmers at the Palestine Information and Communications Technology Incubator (PICTI) are forging a new future for the Palestinian IT industry through a unique collaboration with US-based tech giant Microsoft. The partnership between Microsoft’s Innovation Labs (or iLabs) in Tel Aviv, Israel, and USAID’s Enterprise Development and Investment Promotion project (managed by CARANA) led to a one-year outsourcing pilot, new iLabs products and the evolution of a long-term relationship—as well as a model for private sector alliances between Israeli and Palestinian firms.

Palestinian programmers at work on the iLabs project

Since 2009, the PICTI-based team has developed three new products for iLabs to be marketed globally: Mixer, which links users’ online profiles (e.g., Facebook) with their registered Bluetooth devices to recognize them when they enter a room; Ark, which gathers online information about movies and television shows to make personalized recommendations, including an active learning component that adapts to user likes and dislikes; and HomeVideoX, which applies face-recognition capability to videos.

Microsoft recently spoke with PICTI about creating another five-person team in Ramallah to work on Bing Mobile applications. Ultimately, the PICTI team hopes to form an independent Microsoft research center in Palestine. The collaboration has exposed Palestinian IT professionals to new technologies, helping the industry developing a more qualified labor force and demonstrating Palestinians’ ability to work with leading global technology firms. Team members have also become an in-house resource for PICTI, helping the incubator evaluate new projects and coach future entrepreneurs.

The collaboration leverages the unique situation in the West Bank—including proximity to Israel’s leading IT industry and the willingness of both parties to set aside political differences for business success. The Microsoft initiative and similar projects with other leading IT innovators such as Cisco and Salesforce.com are fostering an important new Palestinian industry.

“I see the future of the IT sector in this vital project with Microsoft which proves that Palestinians have huge talent, skill and expertise not only in the deployment of IT services but also in the research and Development field,” said PICTI’s chairman, Hassan Kassem. “This is the real path for development in Palestine.”

This post was originally published in July 2011 by Carana Corporation.

Closeup on fingers typing on keyboardThe Maastricht Economic and social Research institute on Innovation and Technology (UNU‐MERIT) last month released its “Assessment of skill and technology indicators at the macro‐micro levels in Sudan.”

The research uses new primary data from  macro and firm surveys and provides a new contribution by examining five hypotheses on the causes and consequences of low skill and technology indicators at the macro and micro levels in Sudan:

  1. First- that the interaction between the deficient educational system – caused by low quality of education- and the high share of unskilled workers leads to poor provision of training; low skill levels; skills mismatch; low transfer of knowledge/external schooling effect; weak technology indicators and dependence on foreign technologies at the micro level.
  2. Second- that the poor local technology indicators/indigenous capability to build the local technology and heavy dependence on foreign technology can be attributed to lack of R&D activities/efforts, due to a lack of funding, low skill levels, weak linkages, lack of networks systems and collaboration between universities and industry/firms, low transfer of knowledge and a lack of entrepreneur perspective.
  3. Third- that the transfer of knowledge/external schooling effects is successful at the micro level but unsuccessful at the macro level due to low educational qualifications and deficient educational and training systems.
  4. Fourth- that skill and technology indicators are significantly determined by firm size and industry.
  5. Fifth- concerns the consistency of upskilling plans at the macro-micro levels.

Finally, one advantage and interesting element in the analysis is a new contribution to the Sudanese literature, explaining the causes, consequences and interaction between the low skill and technology indicators and the transfer of knowledge. Recommendations include further efforts to improve skill and technology indicators and transfer of knowledge at the macro and micro levels which are all essential for economic growth and development in Sudan.

The ICT sector is one of the most dynamic in Moldova’s economy.  Recording a vibrant growth over the past years, today it represents nearly 10% of the national GDP, on par with agriculture production.

There are about 40,000 people employed directly and indirectly in ICT, making the ICT sector one of the major employers in Moldova.  It is also one of the highest paying industries, as jobs in ICT pay on par with those in the financial sector, historically the best paying jobs in the country.  Most importantly, the ICT industry employs the young generation, offering an exciting, fast-growing and rewarding career for the next generation.

Moldova has already chosen the pathway of ICT.  All players – the Government, the business community, the citizens and the ICT industry itself – have acknowledged the importance of information technology as a catalyst for growth, and as a tool of growth enhancement in all other economic sectors.

Technical assistance from USAID Moldova through the Competitiveness Enhancement and Enterprise Development (CEED) project over the past five and a half years has enhanced the competitiveness of the ICT sector through initiatives meant to consolidate the quality of companies, to strengthen ICT education so that it meets the needs of business, and to align the industry towards common goals.

Just last month, USAID Moldova sponsored the Moldova ICT Summit 2011, featuring the Association of Private ICT Companies in Moldova, as well as the recently launched national E- Government Center.  The event focused on the e-transformation of the Moldovan economy, and the importance of e-transparency, among other topics.

Since the initiation of the first phase of the CEED project, USAID Moldova has been involved in numerous efforts.  They facilitated the formation of the Association of Private ICT Companies in Moldova, established relationships between the national government and the private companies in the ICT sector, helped private firms to become IT-Mark certified ICT companies under CMMI methodology (encouraging foreign investment and trade), and set up talks respecting the formation of a “Cloud-Moldova” e-government system.

Additionally, a need for more trained and educated IT professionals in Moldova has arisen.  To meet this need, USAID Moldova connected the Moldovan Minister of Education with large ICT firms.  The ministry signed memorandums with Microsoft, Cisco, and i-Carnegie (Carnegie Mellon University).  New IT focused courses and degrees are being offered in the Moldovan education system, providing the ICT industry with the professional staff it requires.

A man and a woman watch as a man repairs a computer.

Photo: Sergiu Botezatu

Despite these advancements, a few large boulders block continued development of the ICT sector in Moldova.  The national government’s telecommunications company, Moldtelecom, still controls the majority of the market.  Additionally, Moldova is unknown in the region as a destination of IT, this holding back investment.  Thankfully, however, steps are in place to remove these barriers.  The national government is beginning to investigate selling Moldtelecom and a strategy for ICT sector positioning and promotion is underway, which is intended to put Moldova on the regional and global ICT map.

Last week’s Tech Salon, hosted by ICT Works and the UN Foundation Technology Partnership, was on the topic ‘Can youth find economic empowerment via apps, m-payments and social media?’ Fiona Macaulay from Making Cents and I gave some of the opening remarks to get the conversation started (and Wayan Vota kept things lively as usual).

The premise of the Salon was that ‘today’s youth population is the largest in the history of the world, and 90% of these young people live in developing countries. The global youth unemployment rate is the highest on record, and we’re seeing discontent and disenfranchisement play out on the news each day. In fact, the revolution in Tunisia started with an under-employed youth committing self-immolation in frustration…. Technology-based models hold great promise for increasing and improving economic opportunities for young people: low barriers to entry for youth-built apps, the widespread use of Facebook and its promise as a marketing platform, the ubiquity and ease of m-Payment systems like MPESA – these should be a recipe for youth economic empowerment.

During the Salon we explored 3 key questions:

1) How are youth starting businesses or getting jobs in growth-oriented ICT sectors around the world?

2) How are organizations and programs utilizing technology to reach and engage young people?

3) Where should we be cautious or enthusiastic with technology with respect to youth economic empowerment?

This is the first of 3 posts on those questions, starting with Question 1:

How are youth starting businesses or getting jobs in growth-oriented ICT sectors around the world?

I was pretty skeptical about the potential for apps, Facebook and m-payments to resolve the youth employment/income crisis, at least in the context of the rural communities in Africa where I’ve worked over the past several years. So leading into the Salon, I did an informal survey among some colleagues working in Africa to find out how they observed youth making money using technology, and to see whether the idea above had any legs. My thoughts were pretty much confirmed – in the places we are working, some youth are using technology to generate income, but not so much apps, mPayments and Facebook.

In Egypt, colleagues said that youth are repairing cell phones, serving as DJs at wedding parties, setting up photocopy shops and internet cafes, selling phone calls and airtime, running shops that provide children and young people with the opportunity to play games, and using computers to make flyers and posters for certain producers and products in the communities. They also provide satellite connections for poor families to access national and international TV channels – this service is not legal but generates good income for young people.

In Kenya you’ll find youth managing Mobile Phone Kiosks popularly known as ‘Simu Ya jamii’ (community phones). These double up as phone charging points. Pirated music is big business for some youth and phone unlocking services are increasing. One colleague noted that youth are not really creating applications, but in some of our programs, they are involved in piloting new applications, and thus influencing their development. In Zambia, you don’t see much of this type of activity in rural areas, according to a colleague there. But there are village telcos being operated by youth groups and some village groups are setting up banks of solar chargers to support solar lighting. (Cool result: When they set them up at a schools, encouraging women to come each day to charge their lights, they found that school attendance increased).

[youtube=http://www.youtube.com/watch?v=LTAbe35YCLY]

In Burkina Faso it’s common to see youth selling telephone scratch cards, renting out their phones, offering video services to film at private events, charging up phones for a price. In Senegal, some take phones from one area to another to charge them up for a fee. All over Africa you see video pirating and movie houses, video game houses, video downloading to mobile phones, music on flash drives and flash drives that plug into radios in cars and in collective transportation vans and busses.

There is ‘negative’ business also

Some would place ‘pirating’ and stolen satellite connections here. There is also transactional sex by girls to obtain mobile phones, which are a status symbol. We hear in some communities that adolescents with mobile phones are ‘bad.’ In Cameroon girls said that some boys only use phones to scam people and to steal. Mobiles can also facilitate prostitution. One colleague commented that in Ouagadougou (Burkina Faso) she has seen girls on motorbikes offering themselves by presenting their phone number on their back. We heard from youth in Cameroon that mobiles are commonly stolen and traded. Some parents in various countries do not like movie and game houses, associating them with porn and western culture.

Are youth in rural areas creating ‘apps,’ using ‘apps’ or tapping into ICT development or programming opportunities?

Not really, from what I have seen and what colleagues tell me. There are some shining stars here and there, but this isn’t very widespread yet, and the youth who are developing apps and such tend to be well-educated urban youth. This 2009 study on how the African Movement of Working Children and Youth (MAEJT) uses ICTs is quite interesting in this regard.

 

How do youth obtain and use mobiles? (MAEJT study, 2009)

 

In Egypt, colleagues said Facebook and Twitter groups around specific issues are common among young people in communities. But using ICT specifically for generating income is not. There is inadequate awareness among poor communities on how to make this happen. Although many youth have access to cell phones, ICT is still expensive and non-affordable for many others. Most of the families who have phones in their houses do not have a direct line, which means that they cannot get access to internet through cheap lines. Internet is still very expensive. Getting jobs through the internet is only common among advantaged, well- educated youth, not disadvantaged youth.

In Nairobi, Kenya, iHub and NAiLab have a big pool of developers and there is a lot of action. In rural Kenya, however, access is limited. There is a lot of interest from the youth who have started to catch on though, so colleagues felt it was possible that there could be some type of rural-urban mentoring or connections to help rural youth get on board. In rural Zambia, according to colleagues, sheer poverty means that very few additional resources and capital are available to take on new ideas. There is still very poor mobile phone coverage in some areas, and many young people have already left for urban areas. My colleagues in West Africa did not report seeing any youth developing apps or using Facebook combined with mPayments to generate income. In Kenya, Cameroon, Uganda and some other places, innovation hubs and labs are generating opportunities, but these again seem to be available to secondary- or even more often university-educated youth from urban areas and capital cities or large cities outside the capital.

So, is this bit about apps, mPayments and social media all hype? I’ll explore that a bit more in post 2 of the series. In post 3, I’ll cover the longer term considerations for ICTs and youth economic empowerment and some broader aspects that need to be kept in mind.

 

The agriculture industry is imperative in India. The country ranks second worldwide in its farming output, agriculture allotted 16.6% of the country’s GDP in 2007 and employed 52% of the total workforce. Yet most Indian farmers remained impoverished. The origins of this problem stem from the archaic government regulation called the Agriculture Produce Marketing Committee (APMC) Act. Created in the 1960s, the APMC Act founded that agri-companies, like ITC, could only buy agricultural produce through designated markets called mandis where they would have to buy from registered commission agents. Once the crop was harvested, farmers would take their produce to the mandis where their produce would be auctioned by commissioned agents. Since the agent was the only channel between the farmer and the processor, agents would typically auction off multiple lots before taking it to the processor. Thereby ensuring no price or quality transparency in this farm-to-factory cycle. Since the mandis were a formidable distance from the fields, farmers would have to accept the price offered them at auctions on the day that they bring their harvest to the mandi. As a result, traders are well positioned to exploit both farmers and buyers through practices that maintain system-wide inefficiencies and pocket additional differences in price.

Incorporated in 1910, ITC is one of India’s leading private sector companies with a market capitalization of nearly US$18 billion, an annual turnover of US$4.75 billion. Rated one of the “World’s Best Big Companies” and “World’s most reputable companies” by Forbes magazine, ITC has business interests in tobacco, hotels, agri-business, retail, information technology, and others. The company founded its first E-Choupal site in June 2000, where they created Internet kiosks in rural farming villages to create an “improved supply chain”, directly connecting themselves and the farmers. The e-Choupals serve as both a social gathering place, choupal means gathering place in Hindi, to exchange information and an e-commerce hub. What began as an effort to re-engineer the system of processing and acquiring soybean meal, rice food grains, wheat, lentils, and coffee in rural India also created a highly profitable distribution and product design channel for the company. An e-commerce platform that is also a low-cost, mutually beneficial system focused on the needs of rural India.

In addition to the farmers only using the e-Choupal there is also a host farmer, called a sanchalak, who acquires some operating costs and is obligated to serve the entire community; the sanchalak benefits from increased esteem in the community and a commission paid him for all e-Choupal transactions. The farmers can use the Internet kiosks for daily access to closing prices on local mandis, as well as to track global price trends or find information about the weather and new farming techniques.

Famers using the e-Choupal Internet kiosks

The rural farmers can also use the e-Choupal to order seed, fertilizer, and other farming products such as consumer goods from ITC or its partners, at prices lower than those available from village traders. When it is time to harvest the crops, ITC offers to buy the crop directly from any farmer at the previous day’s closing price and then the farmer transports his crop to an ITC processing center known as Choupal Saagars. Choupal Saagars are alternatives to the traditional mandis, catering to about 40 e-Choupals and are all within tractor driving distances. The crop is then weighed electronically and assessed for quality, and the farmer is paid for the crop along with a transport fee. Through this new process, farmers benefit from a more accurate weighing, quicker processing, and immediate payment. Further, the access to a wide range of information, including precise market price knowledge and market trends, assists them in deciding when, where, and at what price to sell.

Though the e-Choupal system serves as a catalyst for rural transformation, alleviating rural seclusion, cultivating transparency for farmers, and enhancing their productivity and incomes, there were still some core problems like education, health care, and insurances, which still eluded the farmer. Governmental system inefficiencies have long kept farmers in an economic hiatus, and companies in the agrarian society struggled to find a balance between their social and shareholder obligations. However, with the e-Choupal system, ITC had a model that created a unification of their seemingly oppositional needs.

The e-Choupal program converged with ITC’s corporate social responsibility initiative to act upon objectives to help the community they were working in. Through their e-Choupals, ITC created Supplementary Learning Centers to help with rural India’s primary education, empowered women to become part of the global marketplace, and developed a three-tier Choupal Health Care model to cultivate the installation and delivery of both preventative and curative healthcare services. In addition, they also generated a full scale retail marketplace in the Choupal Saagars to the rural population and created financial product marketing for the farmers and their families where ITC offers to sell credit through their network. The Kisan Credit Card, third party loans, and channel credit allowed farmers to establish a better established infrastructure which drove down certain aspects of cost and improved the quality of their crops.  Weather insurance, life insurance, along with pension and disability incomes were also established for farmers to have for themselves and their families just in case disaster struck.

One of the retail Choupal Saagars

The e-Choupal system lets farmers be more lenient with their choices, gives them a higher profit margin on their crops, and access to information that improves their productivity. By providing a more transparent process and empowering local people as key nodes in the system, ITC heightens trust and fairness. Critical factors in the success of the venture are ITC’s extensive knowledge of agriculture, the effort ITC has made to retain many original aspects of the existing production system, including maintaining relationships with local partners, ITC’s continued commitment to transparency, and the treating the farmers and local partners with respect and equality.

Sources: CIA World Factbook- India

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