Tuesday, January 27, 2009

Beyond Uganda’s 8 Million Telecom Subscribers

By Kato Mivule

According to the Ugandan Press, Telecom companies are in a celebratory mood after subscribers reached 8 Million in number, given Uganda’s population of about 30 Million, which is a very significant number in the still relatively new Telecom companies in Uganda.

“Uganda’s mobile telecommunications subscriber base now stands at 8.2 million, a growth rate that is not only underscoring the pace at which Ugandans are embracing technological change but also the boundless commercial potential embedded in that deep yearning for new technologies.” The Daily Monitor
http://www.monitor.co.ug/artman/publish/business_power/Telecom_subscriber_base_now_stands_at_8million_78839.shtml


The future for Telecom companies looks great with the ever increasing middle class in Uganda that places demand for faster and better communication. It is a wonder for one to walk the streets of Kampala, Uganda’s Capital and find almost every other person with a mobile phone, which was considered a luxury for only the rich and wealthy just a few years ago.

From the Boda-Boda (Motorcycle Taxi) folks to politicians, communication has been made very easy. Local businesses have taken on the Telecom infrastructure and used it to transact business more easily.

Take for instance, a Matoke (Banana Plantain – A staple food in Buganda, Uganda’s central region) dealer does not have to board a Taxi to go to Masaka (a Town in Uganda) from Kampala to place orders for Matoke, he simply calls and this makes his business much easier… The Telecom Boom in Uganda is really remarkable and revolutionary.

However, despite the Telecom advances and the growing number of subscribers, major challenges remain that daunt Africa in growing out of its plight. There still remains poverty, diseases, and illiteracy.

The moral challenge for Telecom companies in Uganda which are currently harvesting huge profits from the exponential number of subscribers is to find ways to employ the current Telecom infrastructure to fight Poverty, Illiteracy, and Diseases. It is in their interest to do so, rather than just focus on making hefty profits. A healthy society, an educated people, and a financially stable population will be of real ‘interest’…

Many Ugandans, who own Mobile Phones, only use them for making and receiving calls but perhaps more can be done. There is no doubt that Telecom companies in Africa are the current “Big Thing”.

However, many are still locked in the idea of simply increasing subscribers. Telecom companies in Uganda are among the largest spenders when it comes to advertisement, with budgets that would catch the attention of a Western Marketing Agent.

Telecom companies can move to show Ugandans and Africans that they can utilize the current Telecom Infrastructure to better their lives and fight diseases, poverty, and illiteracy. In the long run it is the Telecom companies that benefit from the increased usage of their infrastructure.

It is time Uganda’s Telecom companies moved beyond ‘Subscribers’ and “Boundless Commercial Potentials”… When Africans fare well, Telecom companies will fare even well…

Monday, January 26, 2009

Will the Economic Slump Be a Blessing for I.T in Africa?

By Kato Mivule

I.T Experts agree that Africa generally lags behind when it comes to Information Technology. There are a number of benefits that could be derived from the use to technology, especially in the fight against Disease and Poverty, including illiteracy.

However, the greatest hindrance to the full utilization and deployment of Information Technologies in Africa has largely been due to Cost. The cost of procuring both Hardware and Software is astronomical and most African Governments cannot afford the purchases.

Most African Governments in the sub-Saharan region rely on Donor funds to help make such technological investments but at very minimal levels such as upgrading Central Banks and other critical financial institutions computer systems.

Many other government agencies are left to fend for their own. I recall visiting the Immigration Center in Uganda and going to the storage room were records are kept. Surprisingly, most of the records are kept in paper form and in cardboard files, most of which have been eaten by moth, dampness and mice.

No wonder there is such an alarming rate of forgery and impersonation when it comes to acquiring a Ugandan Passport. Ugandan Immigration Services would find it very difficult to locate a Passport Application of someone who applied in 1980 but happened to pass away… However, such is the sickness with which records and kept in many African Government Agencies, just naming Uganda as an example.

Well, the problem is that even when the prices of hardware keep coming down, the prices of software kept going up and making the accessibility to the latest Information Technologies out of reach for many in Africa.

Interestingly enough is that Microsoft does not cut its prices for software sales in Africa. License Agreements stay the same as when one purchases the same software package in the West. Secondly, one has to keep upgrading and with each upgrade is more money. You will find that some institutions that manage to upgrade to the latest version of Microsoft in 2003, will not do so for another 10 years because of price.

Ironically it is Bill Gates and his Foundation has been one of the main donors for funds to fight against disease, illiteracy and poverty in Africa. However, if Bill Gates sends A Million Dollars to help fight against HIV/AIDS in Africa, then Microsoft takes that Million Dollars away through high price tags and recurring license fees for their software.

Things seem to be changing, not to sound pessimistic but the economic downturn and recent shakeup at Microsoft with Windows 7 verses Vista, and Layoffs, will maybe help those in Africa look for alternatives such as Open Source Technologies and perhaps force Microsoft to lower their price tag and cut the strings that come attached with it. Even in Africa, the days of a Microsoft Monopoly might be coming to an end.

Makerere University and the New CIT Center

by Kato Mivule

Makerere University opened a multi-million dollar I.T center, thanks in part to global companies like Google, Rockefeller Foundation, HP, Nokia, Siemens, and Sun Microsystems. Makerere University now has a clear role to play when it comes to providing solutions to poverty, illitracy, and diseases and how Information Technology can help in this cause.
MAKERERE University has opened a computing and information technology centre to develop local computer software. The 12,000sq metre complex valued at over $20m is expected to connect over 100 universities in 13 African countries with India in e-education. It is part of the Faculty of Computing and Information Communication Technology (ICT).
Makerere IT centre to link 100 varsities - New Vision
http://www.newvision.co.ug/D/8/12/669709

There has always been a school of thought that public universities should not use tuition fees to invest in long-term projects. Proponents of this argument reason that such projects should be left to the government and donors; with tuition fees going into short-term necessities like buying chalk, books, computers and paying staff emoluments. But as Makerere University’s CIT faculty has demonstrated; this is not always true. For example, just before the new centre can be opened, the Netherlands government, Rockefeller Foundation, HP, Nokia, Siemens, Sun Microsystems and Google have donated equipment worth over Shs5 billion. The returns will even be bigger when the centre becomes operational.
Lessons from Makerere Computer Complex - Daily Monitor
http://www.monitor.co.ug/artman/publish/opinions/Lessons_from_Mak_computer_complex_78852.shtml

However, Makerere University should be held accountable to the standards that they have set. They now have the 'I.T capital' needed to move forward... Many projects get started in Africa with the funding of donors but end up wasted and never yield the results.

Will Makerere set a new standard and fully utilise the 'I.T Capital' given to them or will it go to waste as other projects in Africa? Two years from now, what will Makerere CIT offer in reports in regard to how they have been able to help provide solutions Uganda's nuemrous problems ranging from poverty to disaeses? We hope that the Makerere CIT center does not just become another 'Kampala Internet Cafe'...

Sunday, January 25, 2009

KenyanTelecom Companies Overtaxed

By Kato Mivule

Telecom companies in Kenya are not pleased with the introduction of a New tax called the 'Rural Access Fee' Tax of one percent. The purpose of this tax is not explained that well but seems to be focused on having more I.T accessibility for the Rural Kenya.
"...Already among the most taxed telecommunications companies in the world, Kenyan mobile phone firms are crying foul over the introduction of a new tax in the form of a Rural Access Fee in the Kenya Communications (Amendment) Act, which is now law...Already we must pay 10 per cent excise duty and 16 per cent VAT on all airtime — this development could hamper the growth of the industry and will cause price erosion,” said Mr Rene Meza, managing director of Zain Kenya. Mr Meza said the additional tax would burden proposed budgets for mobile firms which are already taking a beating from reduced profit margins in the ongoing price war and said the development could even lead to a reduction in new products and services from the mobile players..."
Kenya telecoms fault new tax on airtime - Daily, Monitor
http://www.monitor.co.ug/artman/publish/business_power/Kenya_telecoms_fault_new_tax_on_airtime_78463.shtml

While the cause behind the taxation might be noble and a 'right cause', Kenyan Telecom companies are right in 'crying foul' as they already pay hefty prices when it comes to Mobile Communication Taxes.

This move alone could hamper the growth of Telecommunication in the rural areas that the Kenyan Government seems to target with this new tax. With already 10 percent Exercise Tax and 16 percent VAT is already way too much...

Friday, January 23, 2009

About Kato Mivule and MivuleTech

Attended Longview Community College - Missouri. Studied Computer Science at the University of Missouri - Kansas City and pursuing further studies in the same... Very much interested in Information Technology and how it can be used as a tool for development in Africa.

On this Blog I will also endeavor to keep track of Western Nations and their contribution to I.T. Development in Uganda, and Africa at large... Are Western Nations 'working hard' to help 'bridge' the digital divide?

I will be documenting Information Technologies as reported in Uganda, both Historical articles, Present and Future... Interested in Open Source Technologies and How they can be enhanced to alleviate Poverty, Ignorance, and Diseases in Uganda and Africa.

God Bless
Kato Mivule

Uganda Telecom Executives in a 'Bliss' While Global Crisis Deepens

By Kato Mivule

Uganda Telecom companies dismissed impact of the current global crisis on their operations in Uganda. A Newspaper report sited one Telecom executive saying that the global economic crisis will not have any impact whatsoever...
Speaking at a press briefing on Monday, Mr Tushar Kant Mahashwari, Warid Telecom’s chief commercial officer, dismissed fears that industry players would scale down on their investments as the economic slowdown continues to bite in the New Year. “The communication sector might feel some effects but will not be impacted seriously because it is a way of life, which is required by everyone,” he said. “In telecoms, we do not hope to see a scaling down of investments in the telecom sector in the short run. Some of the other industries are scaling down but in the telecom we do not hope to see this. We have not felt any impact whatsoever.”
http://www.monitor.co.ug/artman/publish/business/Telecoms_dispel_fears_of_investment_scale_down_78574.shtml
However, this Telecom executive seemed to be either ignorant of what is going on globally or simply doing PR by painting a rosy picture that all is well in order not to scare off clients.

On the other side, it shows how some business executives have really not prepared and are not proactive at all... The Telecom executive seems to enjoy his moment of 'bliss' not knowing what the implications of the current global crisis could translate to, in Uganda.

The Telecom Executive forgets that though his company might have a secure line of Credit and might have their books in order, many of his clients depend on funds from outside Uganda to buy services from his company.

If the current economic crisis deepens, many Ugandan clients will loose 'their line of credit' and that would mean less calls and less sales. Cell phones are relatively new and not more than 10 years, and Ugandans still have memories of living without cell phones which they could very well resort to in case the global economic crisis deepens.

The Telecom executive cannot "extend" in any circumstance "free credit" to Ugandans to make phone calls... Rather than dismiss the implications of the current Global Crisis on Uganda, the Telecom Executive is better off becoming proactive and setting measures in place on how to respond should the global economic crisis hit Uganda.

Uganda Borrows 75 Million US Dollars For Broadband

By Kato Mivule

China once again is at the helms of I.T infrastructure development in Africa. According to news reports, Uganda's Legislative Body approved US $75 Million loan borrowed from China to install the second and third phases of Uganda's Fiber Optic Data Transmission Backbone.
Uganda’s parliament has approved a US$75 million loan for the second and third phases of the country’s national data transmission backbone, ICT Minister Ham Mulira announced. In addition, a fourth phase has been added to the project in order to connect the war-torn region of Northern Uganda, which was not included in the original broadband infrastructure plans, Mulira said...China’s Huawei Technologies is executing the job, while China Exim Bank is funding the project with a $106 million loan. The Ugandan government has provided an additional $5 million for the project.
Uganda legislators approve US$75 million for data backbone
http://www.itnewsafrica.com/?p=1965
China is definitely increasing her foreign policy muscle economically in Africa while other Western Nations tend to lay focus on Human Rights and Democracy. China's investments in the area of Technology are increasing in Africa yet Western Nations have largely been reluctant to invest in the continent.

In years to come China might have a more powerful say in the affairs of Africa than the West. However, this will not advance the causes of "democracy" and "freedom" as the West defines it.

Rather, China will advance its own form of 'rule' which is very favorable with many dictators across the continent of Africa, that is, China places a strong hand against dissent and largely controls the flow of information. There is no better gift than to have a dictator gag freedom of expression and control flow of information. This is what should scare the heck out of any Ugandan...

What will be the implications to Freedom of Speech, Dissent, Democracy, Freedom of Worship etc when China controls the National Data Transmission Backbone of Uganda? Will China not at one time seek to move in troops to protect her investments?

Thursday, January 22, 2009

Libya Rolls Out WiMax with a High Price Tag

By Kato Mivule

BBC Reported how Libya's main ISP made inroads with a roll out of WiMax Services in Libya. However, interestingly, Libya earns revenues from Oil sales and did make some 'good money' with the high prices of Oil before the current economic crisis. Information Technology seems to be a place for investment.
WiMax does not rely on sometimes poor conventional wire infrastructure. Libya's only internet service provider is launching its first commercial wireless network which it says is one of the most advanced in the world. The state-owned firm said only a handful of countries have rolled out the advanced internet connection known as WiMax on such a wide scale. Libya Telecom and Technology aims to start with WiMax coverage, including a mobile feature, in 18 cities. Africa is seen as a potentially huge market for WiMax technology...The WiMax network is meant to do away with all these hurdles and bridge the digital divide, making the internet available to people across the country.
Libya's wireless web access leap - BBC
http://news.bbc.co.uk/2/hi/africa/7845905.stm
Already Libya has begun moving beyond it's borders by buying shares in Uganda Telecom, one of Uganda's main Telecom providers. WiMax is answer to many of Africa's poor neighborhoods unlikely to get 'connected' because of poor infrastructure.

However, there are still logistical problems like how to make WiMax equipment accesible to all and also reduction in Prices. Connectivity is overly priced in Africa. While there is a sense of relief that Africa is getting 'connected', yet the Technologies are only accesible to a selected few rich and elites who can afford the price tag.

India Not Left Behind in Scramble For Africa

By Kato Mivule

Interestingly, India has had business operations within Africa for many years but seems now to be awakened by China's $100 Billion investment in Africa. India now plans a massive $100 Billion investment in Africa for the next five years. India will also focus much of the investment in Information Technology and mining included.
India’s trade with Africa soared from $967 million in 1991 to $35 billion in 2008, but remains way behind China’s nearly $100 billion.... New Delhi: “India expects to triple trade with Africa over the next 5 years to reach $100 billion,” officials said, as it tries to strengthen ties in a region where Asian rival China has made rapid inroads. Despite an economic slowdown, India is planning a slew of projects in agriculture, small industry, mining, Information and Communication Technology (ICT), oil pipelines, chemical industry, power generation and transmission among others.
LiveMint.com
http://www.livemint.com/2009/01/21144935/India-plans-to-triple-trade-wi.html
Both China and India are in a rush for mineral resources in Africa. However, one wonders what all this means for the African Nations. What is their 'say' in matters of an independent Information Systems Infrastructure, if there is anything at all like that in Africa? Who will call the shorts and what regulations will be in place to protect individual nations.

Information Systems Infrastructure are part and parcel of any nation's Sovereignty today and what measures have African Leaders in place to protect their Information Systems while at the same time allowing business growth that should be focused at improving the livelihood of local people.

India and China are both 'businessmen' and no doubt simply concerned with Mineral Resources they can exploit from Africa so as to cover the needs of their growing populations. China has been one of the greatest culprits when it comes to 'Dumping' bogus third grade good in Africa.

Many Ugandan Business Men for instance are lamenting the very poor quality of goods being 'Dumped' in Kampala by Chinese Businesses. A business man in Kampala cannot make returns off shoes imported from Italy as a Chinese business man in Kampala imports a 'third grade' copycat counterfeit product while being protected by the local government.

What assurances have Africans that the Chinese "I.T. Investments" won't be a junk I.T. Infrastructure?

Many African leaders are caught up in the mentality of "Beggars have no choice"...and "the Investor is King".... However, we have to Rivals who both want to give to the "beggar"...so why not set prerequisites? In this case the"Beggar" might very well have a Choice...

Uganda to Host Global IT Outsourcing Expo?

By Kato Mivule

Reports are that Uganda will host a 'Global IT Outsourcing Expo'...with purpose of course aimed at attracting Investors to Uganda with jobs from the West. However, Global economics seem to dictate otherwise....
Kampala, Uganda — Uganda may soon turn into a centre for hosting international and regional conferences and trade fairs. Among the many conferences it has hosted since CHOGM (Commonwealth Heads of Government Meeting) in November 2007, Uganda will host an international trade expo in business and professional services come March 2009. The expo will be the first of its kind in Africa and in the developing countries. The focus of the expo will be promotion of trade in services and increasing visibility of the services trading firms in the country, region and on the international scene. Amos Tindyebwa, the Executive Director Uganda Trade and Business Development Centre (TBDC) said the expo is expected to attract over 2,000 companies and enterprises worldwide in areas of business process outsourcing (BPO), call centre services, website hosting, data centre hosting, help desk services, aviation, media and communication, banking and insurance, tour and travel among others.
Uganda: Kampala to Host Global IT Outsourcing Expo
http://allafrica.com/stories/200901191404.html
Many countries are going into a 'Protectionism' frenzy and fearing the backlash of their own citizens, they will push to preserve jobs in their own countries. However, it will be a good PR for Uganda once again to have such high profile meeting.

The best Uganda can do is show case her own Technological Advancements, if any, and what they can offer to the rest of Africa in terms of Information Technology so as to capture a sizable chunk of the African Market.

I don't think that we are going to see a flood of investors setup Call Centers allover Uganda, those days are largely gone with the current economic down turn. However, this is another platform that Uganda and use to show case her I.T advancements.

China To Invest in Information Technology in Uganda

By Kato Mivule

China is reported to be set to invest 75 Million US Dollars in Uganda with a large portion going towards Information Technology according to Ugandan Press...
In Uganda earlier this week, Yang signed agreements on foreign assistance totaling about $75 million, the largest portion for information technology projects. Ugandan Foreign Minister Sam Kutesa said the countries have also discussed construction of a railway line from Uganda to neighboring southern Sudan.
China's Foreign Minister Wrapping Up Africa Tour
http://www.voanews.com/english/2009-01-16-voa42.cfm
Interesting move by China not only to maneuver politically in competition for Africa's Rich Mineral resources but China seems bet at having a say at the flow of information in Africa...especially when it comes to reporting China's "dealings" in Africa...

Taking Science to the Marketplace?

Kato Mivule

African Union Leaders are on the right track to find innovative ways to implement Africa's own "grown" (though largely the seeds are not ours...) Technologies...
But in January 2008, African Union (AU) heads of state finally adopted an action plan for the Accelerated Industrial Development of Africa. The plan, known as Aida (which incidentally is Kiswahili for reward), is jam-packed with initiatives to improve the commercial uptake of research results. And next month (January 2009) a strategy for implementing it will be presented to the AU presidential summit in Addis Ababa, Ethiopia. There is plenty of synergy between Aida and the Consolidated Plan of Action (CPA) for science development, which African science ministers adopted in 2005. For example, both support creating African ‘centres of excellence’ in scientific research, and increasing countries’ science spending to 1 per cent of gross domestic product. But where the CPA aims to generate useful science, Aida focuses on bringing it to the market. It outlines an African Technology Innovation Initiative that will create African networks to design, test and certify products, support businesses and transfer technology.
Business & Technology | December 28, 2008
http://www.monitor.co.ug/artman/publish/sun_business/Taking_science_to_the_marketplace_77399.shtml
However, it is interesting to note how it has become of importance for Africa to find Technological Solutions that work and can be implemented and also leaders taking the initiative to create Markets within Africa for these solutions...