Chil’s Point of View….

[completly my opinion; and I could have gotten some facts wrong; but I present this info as-is]

Rwanda Vision for Technology Based Economy

Rwanda is an East-Central African country, known to the world for the 1994 genocide that killed close to a million of its people. It has a population of about 10 million people (The World Fact Book, 2009). But these days, the country wants to change that image, and it wants to be known as the technology hub in Africa. The country came up with a program called “Vision 2020”, which would see the country transform from an “Agriculture based economy to Knowledge based economy” which embraces technology (Africa Development Bank 2009). Driven by government support, Rwanda is embracing the internet in order to transform its economy. 

Africa Internet Use Growth

Africa as a region has been rolling out mobile telephone infrastructures which many people are using rather than PCs for connectivity (Ferraro 2008). This is contributing to the increase in the percentage of internet users which has changed from 3.5% in 2008, to 3.9% as of June 2009 (Internet World Stats 2009). Rwanda is one of the countries that is contributing to that change due to their ambitious plans to leverage technology. The Rwanda government has come up with Information and Communication Technologies (ICTs) policies that aim to leap-frog the industrialization stage, and transform the country economy into an information and knowledge-base one(Rwanda Development Gateway 2005). According to the ‘The United Nations Economic Commission for Africa’, the Rwanda government policies has goals which include

-          Modernize the Rwandan economy and society using ICT as the main engine for: accelerated development and economic growth; national prosperity; and global competitiveness
-          Transforming Rwanda into an Information Technology literate nation
-          Promoting and encouraging use of ICTs in the economy and society
-          Turn economy to a high income one dominated by the trading in ICT product and services.

Cleary from the country goals, Rwanda seems to be on track as they finally got approved $24 million from the World Bank to start with the project (Balancing Act News 2008). The project to put in place fiber optic has been progressing, and the faster internet connection went live in September 2009 (Juma 2009). Rwanda has started raising awareness by putting in place Internet Connected Buses, which have laptops in them, driving from village to village (BBC News 2009). The buses have been providing free internet to students, and local business; and offering brief trainings. Computer ownership has also increased, mainly because Rwanda does not tax on Information Technology (IT) goods and the country strategy of targeting the children through a global ‘One Laptop per Child’ program (BBC News 2009). 

Information Technology Opportunities in Africa and Rwanda

With all the developments happening in Africa, there is an opportunity for global firms to enter the international market, and then leverage the internet infrastructure. Rwanda as an ideal example is attracting Fortune 500 companies such as Google and Costco, who have seen the opportunities in the country (Gunther 2007). Rwanda has been promoting their country as a business friendly nation, and the favorable response from corporate America may be seen as an endorsement for other firms to come in.

Population Age Distribution – Sub-Saharan Africa and United States of America

Source: Population Reference Bureau, 2009
The United States has an aging population, but Africa on the other end is facing a population boom. This creates an opportunity for products and services for children and parents (Mahajan 2009; Page 148). With Rwanda targeting its young population with technology, global firms have opportunities for youth based advertising.

Global Technology Marketing Challenges

But I anticipate that getting marketing firms to enter Rwanda would not be easy. As much as there are improvements happening, the firms would one way or the other have to deal with social issues. Computer access is still a luxury, and the problems such as constant electricity have not gone away. But according to Patrick Nyirishema, director of Rwanda’s Information Technology Authority, the technology drive will be moving in parallel with other planned government infrastructure plans to meet the new demands (BBC News 2009).

Other marketing challenges include the fact that “Africa is data poor” (Mahajan 2009; Page 209). There would potentially be a contact need to travel to the market, and generate market data before going on with strategies. Back and forth travelling would be expensive for firms to create their own data to understand the market. Author Vijay Mahajan of the book “Africa Rising: How 900 million African Consumers offer more than you think”, suggests that that Africa needs a resource like the Marketing Institute (MSI) in the United States. If multiple firm poll their data, a more accurate picture of the African market would be painted; this is one of the aims for the Rwanda government to address the shortage of data.

Enter market Slowly

Rather than abandon this market completely, global firms need to address the challenges, but still drive forward into the market. Some organizations such as Kiva.org, a Micro-financing firm, have already used the internet as a way to get local people in Africa. They already had success providing micro loans to Africa, even though their path was not smooth all the way. They hit into challenges, like the electricity, and were able to come up with mobile strategies, since a phone will always be on (Information Week, 2008).  But Kiva.org did enter the market slowly, and are learning to adjust to it.

Although it is unclear how inexpensive laptops will affect online access in the poorest areas of the country, it is clear that information is already starting to flow freely, and this is fulfilling one of the Rwanda’s government goals. Perhaps global firms can learn from these other organizations which have made their first moves, and perhaps global firms can start creating their brands as the population learns about technology.

REFERENCES

1)      Africa Development Bank Group (2009)
Vision 2020 – Use ICT to facilitate rapid socio-economic development
 ICT Situational analysis in Rwanda;
http://www.afdb.org

2)      Africa News Update, (2007)
Rwanda: Using ICT to build knowledge-based economy- http://www.afrika.no/Detailed/15287.html

3)      Balancing Act News Update (Africa) (2008)
Rwanda Gets $24 Million Boost for Regional Broadband Networks
ISSUE NO 426 8th October 2008
http://www.balancingact-africa.com/news/back/balancing-act_426.html

4)      BBC News, (2000)
Rwanda forges ahead with IT goals
http://news.bbc.co.uk/2/hi/programmes/click_online/8285496.stm

5)      Ferraro, Nicole (2008).
Africa’s Portal To the Internet,
http://www.informationweek.com/news/internet/ebusiness/showArticle.jhtml;jsessionid=32NBNBDZNNAOXQE1GHPSKHWATMY32JVN?articleID=206100708&pgno=1&queryText=&isPrev=

6)      Gunther, Marc (2007)
Why CEOs love Rwanda
http://money.cnn.com/2007/03/28/news/companies/pluggedin_Gunther_Rwanda.fortune/

7)      Information Week, (2008)
Africa’s Portal To The Internet
http://www.informationweek.com/news/internet/ebusiness/showArticle.jhtml?articleID=206100708&pgno=2&queryText=&isPrev= 

8)      Internet World Stats (2009).
Internet Usage Statistics for Africa,
 http://www.internetworldstats.com/stats1.htm

9)      Juma, Calestous (2009)
New Africa broadband ‘ready’
http://news.bbc.co.uk/2/hi/technology/8256940.stm

10)   Mahajan, Vijay (2009).
 “Africa Rising: How 900 million African Consumers offer more than you think”,
Wharton School Publishing, New Jersey

11)   Population Reference Bureau (2009)
2009 World Data Population Datasheet  
http://www.prb.org/presentations/09worlddatasheet_presentation.ppt 

12)   Rwanda Development Gateway (2005)
“ICT & Telecommunications”
www.rwandaGateway.org/article.php3?id_article=93

13)   The World Fact Book, CIA (2009)
Rwanda
https://www.cia.gov/library/publications/the-world-factbook/geos/rw.html