1
2
The good…
…the bad…
…and the unfulfilled potential
3
The good…
4
Access to affordable infrastructure is increasing
“In 10 short years, what was once an object of luxury and privilege, the mobile phone, has become a basic necessity in Africa”
Paul Kagame
75%Mobile penetration in Nigeria. 63% in Africa – growing from 0.5% in 1998 to 63% in 2013
>30%of Nigerians are online and this number is growing… particularly due to mobile internet
1.38%increase in GDP for every 10% increase in broadband across sub-Saharan African countries
Source: ITU World Telecommunication/ICT Indicators database
5
Innovation is driving infrastructure investment and further extending access
6
Social media is creating millions of connections across the continent, particularly as delivered through mobile enabled devices
Web-based Phone enabled (through apps)
7
There is no shortage of innovative ideas and early indications of impact…Our study surveyed over 1300 businesses across four countries and considered more than 900 deployments of Internet enabled solutions across six sectors and eight impact areas
8
Access to financial services: eCommerce and payment platforms
N18bn transacted by Mar2013
Nearly
1M users
Access to job opportunities: Correcting information asymmetry
related to employment options
>40K jobs facilitated by 2013
Impact is being delivered in both social and economic terms
0.87
Users after first year of operation
Users Sep2013
0.04 million
0.36 million
Initial user base
Access to education: Digital books are creating access
to reading and learning
>10.1M annual page reads in Nigeria and over 190,000 readers across Africa 80K
Total jobs advertised
No. jobs facilitated
9
Public, private and philanthropic investors are making big bets
10
…the bad…
11
Challenges related to access, innovation, and policy are holding back growth
2. SCALE
We’re suffering from ‘pilotitous’…
Pilots must lead to next wave growth and large scale impact
3. POLICY & INNOVATION
Are policies driving innovation?
Are policies aligned to fully leverage the information economy to drive growth?
Sector-specific policy
Business/ enterprise
policy
Technology policy
1. ACCESS
<35% Internet penetration in Nigeria
<10% African businesses online
12
Reputation of the ICT and general business environment isn’t great
13
…and the unfulfilled potential
14
How do we drive meaningful access? What are the conditions for success?
Source: Dalberg research and analysis
Two key pillars provide the basis for a well-functioning Internet economy: “core infrastructure” and “conditions for use”
Core Index
Environmental characteristics
Physical infrastructure
Business environment
Citizen demographics
Business demographics
Stakeholder characteristics
Usage Index
Means to use Internet
infrastructure
Availability
Accessibility
Awareness
Attractiveness
Desire to use Internet
infrastructure
Core and Usage Index
Countries that wish to reap the Internet’s potential for social and economic gains must continue to invest in infrastructure and the broader ecosystem for innovation.
15
Continuous investment in infrastructure is critical
Mapping of countries based on conditions for Internet use and core infrastructure
Sub-Saharan Africa is on the right trajectory but, absent a minimum investment in core infrastructure, countries face a ceiling to progress on usage conditions
16
Three recommendations for Nigeria
1. Impact: Look toward payment platforms to unlock the next wave of African online consumers and translate virtual connections into meaningful economic value
2. Access: Continue to invest in infrastructure by looking for opportunities to align incentives between public and private sector
3. Ecosystem: Invest in creating policy the drives innovation…and explore how ICT can enable that innovation
17
Twitter: _robinmillerEmail: [email protected]
18
Dalberg is an advisory firm dedicated to global development
World Bank
Sampling of clients served
Global presence
JohannesburgBogota
New York
Washington DC
Nairobi
San Francisco
Geneva
Copenhagen
DakarMumbaiBogota
Services provided
• Analysis of market needs, gaps and opportunities• Business case development for new initiatives• Creation of innovative financing mechanisms• Entry strategies for products and services to emerging and
frontier markets• Evaluation and performance management• Facilitation of public-private partnerships• Mobile channel strategy and implementation plans• Organizational reform to strengthen accountability, efficiency
and effectiveness • Policy and advocacy support
• Access to finance• Agricultural development• Capital advisory services• Climate change, conservation and energy• Education• Emerging and bottom-of-pyramid markets • Global health• Human rights• Mobile and ICT applications in development• Programs in conflict areas and post-conflict recovery
Areas of expertise
19
Dalberg’s services address a range development issues, which give us a unique perspective on the application of technology for development