DFID East Africa

This report seeks to increase understanding and better articulation in the Department for International Development (DFID), United Kingdom (UK), of the implications of the arrival of the fibre-optic cables for Kenya’s development and limiting factors that need to be addressed if Kenya is to benefit from plugging into the global fibre-optic network. It was written in anticipation of the arrival of sub-marine fibre-optic cables to East Africa - SEACOM, anticipated in June of 2009, and East African Submarine Cable System [EASSY], in early 2010.

The cable connections are expected, as stated here, to have significant impact in reducing the cost of bandwidth in the country. "However a disconnection among the stakeholders, poor marketing, a shortage of skills, funding constraints (especially with the global recession) and a major shortage of qualified staff in coming years, present key challenges. In making the case for a vibrant ICT [information and communication technology] industry as the best way to take advantage of the arrival of the cables, this report identifies the need for Kenya to adopt an open access policy, develop a national IT strategy, build up its terrestrial infrastructure, and pull together all key stakeholders in an effective national association."

The article examines the Western and Southern African cable project called "SAT/WASC/SAFE" linking Europe with South Africa and ten countries on the West African coastline. The African countries are Senegal, Nigeria, Ghana, Ivory Coast, Benin, Cameroon, Gabon, Angola, and South Africa. Non-African countries that form part of the project are Canary Island, Portugal, and Spain. Though the project has increased competition and reduced bandwidth costs, enhanced ICT access and services, provided some job and investment prospects in business process outsourcing (BPO), and provided "landing stations" for the ICT access of landlocked countries, the desired impact of this IT arrival has, as reported here, not been felt as strongly as anticipated. As stated here, the original signatories hold a "monopoly" on the gateway and have not allowed for lower cost access. Also, terrestrial (fibre) backbone infrastructure is underdeveloped.

The document outlines the 7 cable projects underway. It then analyses Kenya’s current needs as:

• Communication amongst levels of enabling bodies in Kenya, particularly between "the government and the masses, between universities and the markets, between technology and the user, between banks, banking staff and entrepreneurs"
• Building brand recognition of Kenya as an ICT leader
• Educating for ICT knowledge and skills, building business staffing capacity.
• Improving cash flow for enterprise: “Banks do not know how to assess ICT business plans.” ICT small enterprises seem to need another type of capital other than equity or loans, e.g., seed capital and venture capital.

The document suggests a shared vision of the opportunities offered by the arrival of the under-sea linkage: create "a vibrant software export industry; a clean non polluting industry employing people using their brains instead of their muscle." Benefits might include: job creation; revenue generation in foreign currencies, spillover effects of improving national business culture; a "new class of heroes" - young, focused IT professionals; knowledge transfers; investment infrastructures; and demand for services as an economic and cultural stimulus. Principal factors that could enhance success are identified in the document as: a clear government vision and policy; appropriate regulation; low wages and costs to attract outside business; an effective national association; and well-planned ICT business parks.

Donor support, as outlined here, could include: funding for ICT industry expansion; direct infrastructure investments in "last mile" solutions; supporting successful ICT and mobile efforts already in place, perhaps by "borrowing lessons from the DFID-Safaricom mobile phone money transfer MPESA project”; lobbying the government for an open access policy; encouraging debate on the benefits of the sub-marine fibre in the public domain through collaboration with the media and supporting the Ministry of Information and Communications communication strategy; supporting Kenyan ICT industry development; coordinated lobbying for ICT issues amongst donors; and supporting the Kenya ICT Action Network (KICTAnet).

Comment sent to The Communication Initiative via the blog Cable News on August 3 2009.