NATIONAL ICT STRATEGY AND INFRASTRUCTURE Comparing Kenya with her Competitors DR. ERIC M. ALIGULA Infrastructure and Economic Services Division KIPPRA DR. KATHERINE GETAO School of Computing and Informatics University of Nairobi Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

OUTLINE OF THE PRESENTATION Introduction The Need for an ICT Strategy Comparative ICT Infrastructure Status Detailed Case Study – Malaysia Lessons from Case Studies The Way Forward for Kenya Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

THE NEED FOR AN ICT STRATEGY Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

FOCUS OF ICT STRATEGY A Typology Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

ICT STRATEGY Focus of Interventions Country Strategy Overview Key Interventions Some Challenges South Africa ICT targeted as an enabler of development Combines public sector vision and private sector development National Skills Development Initiative E-rate – subsidy for schools internet costs IT Brain Drain Poverty Enhancing IT Literacy Egypt National ICT Plan focusing on human resource development, development of ICT infrastructure, and building local demand for ICT through effective PPPs Smart Village Egypt Cyber Centre Lack of a predictable legal framework around consumer rights and electronic transactions Education, intermittent instability and poverty Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

ICT STRATEGY Focus of Interventions Country Strategy Overview Key Interventions Some Challenges Malaysia Government led policies and initiatives aimed at attracting high-end foreign investment and leading a transition to a knowledge economy Multimedia Super Corridor Development hurdles of a highly rural developing economy Singapore An industry led strategy, in which the government acts as a catalyst Master plan on IT Education Liberalisation of the telecoms market Inadequate supply of an ICT-skilled workforce Facilitating SME adoption of e-Commerce Small Domestic Market Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

COMPARATIVE ICT STATUS Institutional Infrastructure COUNTRY MINISTRY RESPONSIBLE REGULATORY INDICATORS Independent Regulator Converged Regulator National ICT Strategy Kenya Office of the President Transport & Communications Information and Broadcasting Yes Communications Commission of Kenya No South Africa Communications South Africa Telecommunications Regulatory Authority Egypt Communications and Information Technology Telecommunications Regulatory Authority Malaysia Energy, Telecommunications and Multimedia Malaysian Communications and Multimedia Commission Singapore Information, Communications and the Arts Telecommunications Authority of Singapore Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

COMPARATIVE ICT STATUS Teledensity and Traffic Flows Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

COMPARATIVE ICT STATUS Teledensity and Traffic Flows Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

COMPARATIVE ICT STATUS Information Technology, Gateway Capacity and E-Readiness  CATEGORY Kenya South Africa Egypt Malaysia Singapore Internet Users per 10,000 persons 125.27 682.01 282.26 3,196.89 5,043.59 Internet Hosts per 10,000 persons 0.93 43.75 0.45 35.18 812.62 PCs per 100 persons 0.64 7.26 1.66 14.68 62.2 Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

COMPARATIVE ICT STATUS Information Technology, Gateway Capacity and E-Readiness Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

COMPARATIVE ICT STATUS Information Technology, Gateway Capacity and E-Government Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

THE MALAYSIAN ICT STRATEGY Malaysia and ICTs – Why? Recognition that Malaysia was losing its comparative advantage in its traditional economic sectors; Need to drive the economy towards higher productivity through technology and high value-added economic activities; Information Age and converging technologies presented the best opportunities for socio-economic transformation. ICTs AS A TOOL TO ACHIEVE DEVELOPMENT GOALS ICTS AS STRATEGIC ENABLERS IN MOVING MALAYSIA TOWARDS KNOWLEDGE SOCIETY AND KNOWLEDGE ECONOMY Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

THE MALAYSIAN ICT STRATEGY Create a mutually supportive feedback loop between demand and supply aimed at laying the foundation for the knowledge economy and society Initiate the process through policy intervention National IT Agenda (NITA) formulated in 1996 with the specific aim of transforming Malaysia into a knowledge economy by 2020 NITA implemented through the National Information Technology Council (NITC) Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

NATIONAL INFORMATION TECHNOLOGY COUNCIL (NITC) Chaired by the Prime Minister of Malaysia Established in 1994 with the vision of creating a values-based Knowledge Society in line with the aspirations of Vision 2020 Aims to enhance the development and utilization of ICT as a strategic technology for national development Acts as a think-tank at the highest level and advises the government on matters pertaining to the development of ICT in Malaysia Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

NITC’S MODEL FOR POLICY INTERVENTION Feedback loop for policy review Organizational level Operational function Execution ICT Based Activities National level Strategic function Policy coordination and integration Policy Framework NITC Strategic Initiatives Inter- and Intra Agency Sectoral Policy Organizational Operational Activities Tactical function Institutional programme coordination Programs & Initiatives Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

THE NATIONAL INFORMATION TECHNOLOGY AGENDA (NITA) PEOPLE comprehensive human development CONTENT & APPLICATIONS Solutions for Info. Age work and life ACCESS AND EQUITY QUALITATIVE TRANSFORMATION CREATING VALUE VISION 2020 Values-based Knowledge Society Connectivity Equitable access to info Culture of learning Info literacy Sustainable societal innovation for better Quality of Life Innovation systems, creativity, entrepreneurship through R&D Life long learning A comprehensive framework for development in the Information Age aims to transform the nation into a values-based knowledge society consistent with Vision 2020 focuses on comprehensive human development addresses access and equity develops local content for multi cultural compatibility and cost effective applications leverages on tri-sectoral partnership as well as top-down and bottom up approaches INFOSTRUCTURE Info. Age Development Foundation Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

STRATEGIC THRUST AREAS e-Economy e-Public Services e-Community e-Learning e-Sovereignity Covered all areas of the economy with the aim of creating value and wealth through successful participation in the emerging knowledge driven economy Focused on the provision of people oriented, customer focused services electronically Facilitated interaction and communication among communities to improve the quality of life Focused on cultivating a life-long learning culture Focused on building a resilient national identity in the face of challenges to the nation Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

STRATEGIC THRUST AREAS Conferences and Expositions Demonstrator Application Grants (DAGS) Multimedia Super Corridor Provided a framework and platform for dialogue and exchange of national and international experiences on ICT, as well as to raise the awareness of the Malaysian public about Information Age developments Promoting the use of ICT and multimedia for socio-economic development through developing communities enabled by electronic networks e.g. NutriWeb, CyberCare, Neighbourhood Centres Provide a comprehensive world-class ICT enabled working and living environment to catalyse development of a knowledge economy. Acted as a global test bed for innovative solutions as well as a hub for development of both local and foreign SMEs Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

MULTIMEDIA SUPER CORRIDOR STRATEGY Create the ideal multimedia environment to attract world-class companies to use MSC as a hub Catalyze a highly competitive cluster of Malaysian multimedia/IT companies that become world-class over time Leapfrog into success in the Information Age Go Global Lead Regional Create value from Information Age businesses Enhance domestic productivity Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

THE MULTIMEDIA SUPER CORRIDOR VISION (MSC): FROM 1996 TO 2020 Transform Malaysia into a knowledge society Phase 3 Phase 2 Link the MSC to other cyber cities in Malaysia and worldwide Leapfrog into leadership in the Information Age Phase 1 Successfully create the Multimedia Super Corridor 1 Corridor 50 world-class companies Launch 7 flagship applications World-leading framework of cyber laws Cyberjaya as world-leading intelligent city Web of corridors 250 world-class companies Set global standards in flagship applications Harmonized global framework of cyber laws 4-5 intelligent cities linked to other global cyber cities All of Malaysia 500 world-class companies Global test-bed for new multimedia applications International Cyber Court of Justice in MSC 12 intelligent cities linked to global information highway 1996 2003 2010 2020 Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

CYBERLAWS AND INCENTIVES Malaysian ICT Legal Framework The Telemedicine Act 1997 The Computer Crimes Act 1997 The Communication and Multimedia Act (1998) MALAYSIAN CYBERLAWS The Copyright (Amendment) Act 1997 Digital Signature Act 1997 The Electronic Government Activities legislation (EGA) The Electronic Transactions legislation (ETA) Personal Data Protection Legislation The MSC is supported by 10 Bill of Guarantees divided into financial and non-financial incentives. Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

CYBERLAWS AND INCENTIVES Bill of Guarantees FINANCIAL NON-FINANCIAL Five-year exemption from Malaysian income tax renewable to 10 years, 4. Unrestricted employment of foreign knowledge workers 5. Freedom of ownership 6. Freedom to source capital globally 2. 100-percent Investment Tax Allowance (ITA) 7. World-class physical & IT infrastructure The MSC is supported by 10 Bill of Guarantees divided into financial and non-financial incentives. 8. Globally competitive tariffs 9. High-quality urban development Duty-free importation of multimedia equipment. 10. Excellent education facilities & human resource talent pool Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

FIRST WAVE MSC FLAGSHIP APPLICATIONS Smart Schools Multipurpose Card Electronic Government Telehealth R&D Cluster E-Business Technopreneur Development An initiative to enhance learning institutions through a 'Teaching-Learning' by developing Smart School Integrated Solutions (SSIS) which consists of multimedia teaching-learning materials, school management applications, technology infrastructure and, training and consultancy services The SSIS pilot program, due for completion in 2002 will cover 90 rural and suburban schools The Multipurpose Card Flagship is to provide the government, payment application, and other future applications on a single MPC platform Currently the MPC incorporates the following applications: National ID Driving License Immigration MEPS Cash Health Information Public Key Infrastructure Borderless Marketing Center Worldwide Manufacturing Web Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

RESEARCH & FUNDING FOR ICT MSC Development Grant Scheme Demonstrator Application Grant scheme (DAGS) Industrial Research & Development Grant Schemes Malaysia-MIT Biotechnology Partnership Programme Technology Development for SMI Technology Acquisition Fund (TAF) S&T Infrastructure and Development and Commercialization of Research and Development Intensification of Research in Priority Areas (IRPA) Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

ICT ROLES, OPTIONS, OBJECTIVES FOR DEVELOPMENT RECOGNISE INTERVENE DEVELOP GROW ICT Roles ICT Intervention Options Objectives of e-Development Synergies ACCELERATING GROWTH Information and Knowledge Delivery ICT/Knowledge/Multimedia Industries ICT Service/Production Industries ICT Enabled Business and Industry ENHANCING PRODUCTIVITY AND COMPETITIVENESS ICT-Business Process Reengineering ICT Enabled Manufacturing and Marketing ICT Effective Data Capture, Processing and Communication DIGITAL MULTIPLIER EFFECTS Accelerating transactions & reducing costs ICT Friendly Environment ICT Empowerment REDUCING POVERTY ICT-Empowered Public Services (health, education, & other public services) ICT Enabled Governance (public accountability, social learning and public participation) ICT Enabled Employment Opportunities ICT Infrastructure for networking and service delivery Networking, empowering Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

THE STATUS QUO IN KENYA Lack of a single vision that harmonizes the efforts of public and private sector and communities; Some of the key issues have been poorly addressed, namely; infrastructure development, human resource capacity building and dealing with the digital divide. Insufficient consideration as to how ICT initiatives will be funded Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

LESSONS FOR KENYA Roles of Government PRODUCERS OF ICT through the development and deployment of ICT goods and services and ICT infrastructure FACILITATORS OF ICT through the creation of an enabling environment, including a conducive macroeconomic environment; a fiscal, legal and regulatory framework; and education policies LEADERS OF ICT by implementing e-government (i.e. becoming users of ICT), addressing digital divides in the country, and making ICT a national priority (e.g. through projects) Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

LESSONS FOR KENYA Critical Success Factors Strong Political and Administrative Leadership Detailed Project Management with clearly identified goals and benefits Business Process Reengineering Required Focused Change Management Initiatives Adopt established standards and protocols Training Expenses should not be minimized Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

LESSONS FOR KENYA The Vision and Mission with regard to ICTs must be in place Enabling ICT Infrastructure and Infostructure must be developed Human resources to support ICT development and application must be nurtured An enabling legal and funding framework Proactive measures to deal with issues of the digital divide Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

THE WAY FORWARD FOR KENYA What does Kenya want to do with ICTs? Vision and Mission Priority areas What institutional structures must it have in place? Main partners and stakeholders Implementation strategy and process Organisation and coordination How does it fund ICT development? How does it deal with shocks from ICT application? Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

“The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it” Michelangelo Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya

REFERENCES ITU (2003) World Telecommunications Indicators. http://www.itu.int/ITU-D/ict/statistics/ The World Bank (n.d.) Information Infrastructure Indicators, 1990-2010 http://www.infodev.org/projects/internet/375pyramid/fin375.htm http://www.nitc.org.my http://www.mimos.my Wednesday 24 March 2004 Presented at the The National ICT Convention of 23-25 March 2004 Safari Park Hotel, Nairobi, Kenya