Africa ICT growth tied to infrastructure, start-ups investment - Nairobi DEMO launch

ICT growth in Africa has been tied to infrastructure and startups investments 

The growth of the ICT sector in Africa is tied to continue investment of infrastructure in the sector, Gabriel Negatu an African Development Bank (AfDB) director has said.

Negatu who was speaking after the end of three day ICT conference which ended last Friday in KICC says such functions will make Kenya and the continent to provide a platform for the start-ups to launch their products.

He adds in such forums coders and developers meet an audience of potential investors, corporate acquirers, government dignitaries, policy makers, academia, development organizations and global media to increase their portfolios.

"The nexus between ICT and economic growth has already been established. The critical element missing is increased investment in ICT infrastructure, which can only be achieved by increased collaboration between the public and private sectors since the initial capital outlay can be prohibitive to individual investors,” said Negatu.

During the function DEMO Africa, the event organizers collaborated the remarks saying their 2009 DEMO demonstrator research study conducted by BluePoint Ventures, in the past 20 years, 22% of past demonstrators received funding within 60 days as a direct result of a DEMO launch.

Equally 92% who secured funding, did so within 9 months of DEMO with 62% receiving over $1 million in funding - mostly from venture and angel investors.

In the past five years, DEMO companies have raised over $4.5 billion dollars in the months/years following their debut at DEMO conferences like the one which just ended in Nairobi.

“This is a platform where the most innovative companies from across Africa will launch their products for the first time as they pitch for capital and strategic partnerships,” said Harry Hare, Demo Africa’s Director and the event organizer.

“We are on the edge of a technology entrepreneurial revolution which requires the participation of both the public and private sectors to take off. What we are looking at now is the making of technology billionaires in dollar terms from the continent and creating massive job opportunities as they grow,” Harry noted.

Harry Hare singled out the success of Safaricom’s Mpesa as a global example of Africa’s potential to steer innovation in the ICT sector.

The organisers said Africa has about 15% of the world’s population, but only about 2% personal computer users and such conferences seek to increase investment in technological innovation and real startups being created in Africa, developing real-world solutions, worthy of investment and global attention.

AfDB and Safaricom among others sponsored the function.

The same event will be organized in Kampala, Kigali, Dar es Salaam, Johannesburg and Cape Town in different dates.

©Manuel Odeny, 2012

Ugandan researcher wins the AfDB 2012 Young African Economic award

Ugandan national economist has won this year’s award in the just concluded African Development Bank (AfDB) African Economic Conference in Kigali, Rwanda. 

Dick Nuwamanya Kamuganga an economist from the Graduate Institute of International and Development Studies in Geneva, won the award for his paper Does Intra-Africa Regional Trade Cooperation Enhance Export Survival.

Excerpts of the paper which was selected from among 500 submissions, which were narrowed down to 43 papers was presented during the conference at the  Regional Trade and Integration session.

Kamuganga’s paper explores long term African export relationship internationally and in intra‐African regional trade cooperation increase, It also examines the effects of intra‐regional trade cooperation on sustainability of Africa’s exports within Africa and to the rest of the world.

He argues that sustainable export expansion is a key priority for all African countries to achieve sustainable economic growth. Kamuganga’s findings suggest that regional trade cooperation, or integration, initiatives in Africa have non‐negligible effects on enhancing Africa’s export survival.

“He also shows that the depth of regional integration matters when it comes to lowering Africa’s export hazard rates relative to countries that are not in any regional cooperation,” AfDB says in an online statement.

“The research explains that actors such costs to export, transit delays (time to export), institutional and policies bureaucracy in  procedures to export and financial depth provide a natural framework for explaining the observable high hazard rates for African exports,” AfDB says.

His paper argues that financial underdevelopment in Africa could have a crucial role in restricting Africa’s export relationship survival.

The researcher argued that regional trade cooperation in Africa would greatly reduce export duration, and would result in a reduction in infrastructure-related trade frictional costs. Benefits of regional trade cooperation would include a reduction in border procedures, harmonization of documentation, product standards and elimination of border tariffs.

The award sought to recognize and encourage research among young Africans and only four research papers were shortlisted and given to a panel of judges to decide which one warranted the award for best conference paper by a young African scholar.

The basic criteria for the prize included that the paper should have been written a single author; the researcher should be under 40 years of age and from an African country; the paper should demonstrate innovation and relevancy in the area of economic policy, and should not have been presented anywhere prior to its presentation at the AEC in Kigali.

“The award which will be apart of the annual conference to boost young African researchers to be recognized by encouraging and inspiring research contribution among young Africans,” the United Nations Development Programme’s Sebastian Levine said.

The conference and the prize was funded by the UNDP, AfDB and the Economic Commission for Africa.