New plan seeks to tap more revenue from ICT industry

The government has embarked on an ambitious plan it hopes will enhance the performance of the ICT sector and more than double its contribution to the economy.

Under a five-year national ICT master plan, it is envisaged that the sector’s contribution to the Gross Domestic Product will rise from about three per cent currently to eight per cent by 2018.

The initiative covering the period 2013 – 2018 was launched during the just-concluded ‘Connected Kenya Summit’ held in Kwale County last week.

By 2018, according to the plan, ICT will have directly created an extra 180,000 jobs, while more than 50 per cent of the population will have access to at least one government service online through the e-Government initiative.

“In addition, there is potential for Kenya to develop local capacity for assembly and light manufacturing of ICT devices and accessories, and in turn create a significant economic sector,” the blueprint reads.

Under the theme, “Kenya as a regional ICT hub and a globally competitive digital economy”, the plan focuses on developing integrated infrastructure, human capital and the establishment of ICT as the driver of the industry.

It is expected that 55 new ICT companies will be established in the next five years, two of which will have a customer base of over five million. Additionally, the country will have witnessed 37 successfully commercialised ICT applications with at least two transformative.

The plan was prepared by the Ministry in charge of ICT, in consultation with the ICT Authority and the private sector.

Its successful execution is expected to enhance Kenya’s position as the regional technology hub and result in the classification of ICT as a standalone economic sector by 2016.

With the implementation of the master plan, Kenya will have improved in global competitiveness by moving up at least 15 points on the Global Innovation index, e-Government and Networked Readiness Index.

The following are some of the highlights of the master plan:

Infrastructure development

In order to extend fibre capacity to all parts of the country, the government is reviewing the National Optic Fibre Backbone Infrastructure (NOFBI), with a view to extending and building additional links to enhance redundancy.

To complement the network, the ICT Department is holding talks with stakeholders to develop a wireless broadband network.

There will also be provision of quality and secure ICT infrastructure to all national and county government offices, while ensuring maximum sharing of facilities. Under the plan, Mombasa is to become an international Internet exchange point.

Financing

Funding of the flagship projects in the master plan will come from the national and county governments, donors and other public or private institutions through private public partnerships and collaborations.

The government has also planned to increase spending on the sector from 0.3 per cent to five per cent of the national and county government budgets from 2015/2016.

It is also looking to give incentives to the private sector to provide ICT systems while driving research and development and, value addition.

Money will also be raised through the capital markets such as the Sh70 billion bond recommended in the national broadband strategy.

The Universal Service Fund, under which all ICT companies are required to remit 0.5 per cent of their annual revenues, will provide additional funds for the master plan’s execution.

Human capital

One of the objectives is to create enough human resource capacity to drive the country’s ambitious targets for the sector. Under the new plan, the government will encourage bright students to take ICT courses in selected centres of excellence through scholarships.

The plan also provides for the creation of an educational cluster of universities running ICT degree programmes in Konza techno city.

“The government and industry must work together to finance a one to two-year intensive structured training and attachment programme for up to 500 high-end ICT staff per year in selected areas.

The programme will also pay for certification for trainees. In addition, all medium-sized public and private companies will have approved structured ICT professional development programmes of at least one year, with opportunities for local and international ICT certifications,” the blueprint reads.

Monitoring

All flagship projects under the new master plan will be overseen by a multi-stakeholder steering committee chaired by the President. The committee will have representation from key arms of government, private sector and academia.

Its role is to provide oversight of flagship ICT projects, receive status reports and resolve inter-ministerial conflicts and challenges.

Synergy with county governments

County governments are to come up with their own master plans, whose goals and objectives will be in line with the national blueprint. Beginning 2015/16 financial year, counties will give ICT development not less than five per cent of their budgets.

It has also been agreed at the two levels of government that enabling more efficient provision of public services through deployment of ICT will be given priority.

Regional governments are also expected to boost the provision of ICT services in their counties in order to attract investments in the sector.