The Fifth Session of the Committee on Development Information 29 April - 4 May 2007, Addis Ababa, Ethiopia Innovation, Science and technology Policy For The Knowledge Economy - the Case of Mozambique by Constantino Sotomane Project Developer MICTI – Mozambique Information and Communication Technology Institute sotomane@micti.co.mz www.micti.co.mz

Country Background (Basic Indicators) Area:799,390 sq.Km Population (2005): Total: 19,420,036 Urban: 31.0% Rural: 69.0% Government 25 Ministries 11 Provinces, 128 Districts, 352 Administrative Posts 33 Municipalities Illiteracy Rate (2003): Overall: 53.6% Urban: 30.3% Rural: 65.7% Per Capita GDP (2005): USD310 Annual growth rate: 8.2% Internet Usage Density (2004):2.7 Teledensity (2004): Fixed Line: 0.4 Mobile: 8.6

Country Background (Economic Drivers) Mozambique is rich in natural resources (hidro-power, gas, coal, minerals, timber, long marine coast and fertile land for agriculture). Main exports: sea products, sugar, cashew nuts, tea, coconuts, aluminum, timber. Main ports: Maputo, Beira and Nacala

Motivation, problem area Nevertheless having all these resources Mozambique is indexed as one of the LDC Some weaknesses: Human resource development shortage of qualified personnel and physical infrastructure to support innovation relevant to Mozambique Lack of proficient personnel in Information and Communications Technology and stimulation schemes to encourage the active participation of the private sector Shortage of scientist and low human capital R&D and income generation Weak industrial base and a lack of an appropriate technology base. Innovative ways for make mozambique being a more producer than consumer are the ones that will contribute to income generation and job creation Week entrepreneurship and innovation culture for income generation and job creation Poor copyrights enforcement Low public and private contribution to R&D national efforts

The KBE Advantage at Work Diagram showing reasons for divergence of GDP between Ghana and Korea over more than 25 years. Korean example shows transformation from a poorly knowledgeable society to a high knowledge based society producing innovative high technology products. Source:www.worldbank.org/kam

Why Knowledge Economy? Because knowledge is the foundation of development and a Sources of Technological Change (Korea example) Because a global knowledge revolution, leading into a post industrial society (opportunity for Africa which missed the industrial era) Get confidence and move to higher level of reforms and developments

The Four Pillars of the Knowledge Economy A sound economic incentive and institutional regime An educated and creative population A dynamic information infrastructure An efficient innovation system EIR that provides incentives for the efficient use of existing and new knowledge and the flourishing of entrepreneurship Source: Carl Dahlman, innovation in African Context- A forum for policymaker (March 2007)

Cross-country Comparison Source:www.worldbank.org/kam

Knowledge Economy Index Africa in World Source:www.worldbank.org/kam

The Mozambique Government Commitment on S&T Mozambique recognize Science and Technology as a primary productive force and in its Five Years Plan (2005-2009) defined three pillars for Science and Technology: Scientific Research Technology Transfer and Innovation Information and Communication Technology (ICT) The S &T strategy was approved in June 2006 and launched in February 2007 by the H.E President of the Republic of Mozambique Mr. Armando Emilio Guebuza.

Strategic Objectives of Mozambique’s Science & technology Strategy 1. Foster a culture of innovation through Mozambican society; 2. Promote grass-roots innovation and of S&T-based approaches by poor and disadvantage communities; 3. Promote R&D and innovation within the industrial and public sectors; 4. Promote the transfer of technology; 5. Promote the use of ICT for good governance and service delivery, and for the diffusion of knowledge, in support of poverty reduction and economic growth; 6. Promote human resources development at all levels in the area of STI; 7. Build and improve the police instruments, institutions and infrastructure of S&T system; 8. Establish funding policies and mechanism for research and innovation; 9. Review, evaluate and enhance the performance of S&T system; 10. Promote the mainstreaming of S&T within all sectors.

Ministry of S&T Vision for S&T Source: Mozambique Science, Technology and Innovation Strategy( 2006)

The Role of ICTs in KE The Science, Technology and Innovation Strategy of Mozambique recognizes the crucial role of integrating innovation and ICT in all sectors as a facilitating tool that will strengthen capacity, improve corporate governance and increase the government’s effectiveness. Mozambique also recognize that ICT skills are fundamental for the public/private sector as: increase its efficiency; they stimulate its entrepreneurial spirit; and play a role towards high quality and diversified production.

ICTs and Development Plans Development Programmes defined by the Government ICTs as Enablers for Social and Economic Development Plan of Action for the Reduction of Absolute Poverty Government Five Years Plan Economic and Social Plans Public Sector Reform Strategy Agenda 2025 for Mozambique ICT Policy and Implementation Strategy e-Government Strategy Telecommunications Policy and Universal Access Strategy New Telecommunication Act Import Tax reduction from 7.5% to 0% e-Legislation

ICT Policy Implementation Strategy Projects Human Capacity SchoolNet MICTI-ICT Institute ICTs Curricula and Certification Youth Programme for Content Development HEI (Universities and Polytechnics) Infrastructure National Transmission Network VSAT Nework Universal and Affordable e-Mail Access Telecenters Digital Agencies E-Government GovNet (Government Net.) SIP 2000 (Public Servants Information Systeml) Civil Identification System State Financial Info. Sys. (e-SISTAFE) Digital Land Registry One-Stop Shop ICT Survey in Public Institutions Electoral Process Info. Sys. Policy and Regulation Capacity Building at INCM Capacity Building at the ICT Policy Commission Telecommunication Sector Reform Content & Applications Info. Sys. For HIV/AIDS Distance Education Knowledge Base for Science and Technology ICT Observatory Country Development Gateway (MzDG) Source: Mozambique ICT policy strategy 2002

Human Resources Development The MICTI Model “… a long-term vision for building ICT skills and capacity in Mozambique, … through a unique sustainable and supportive environment for the development of entrepreneurial and education activity that facilitate business incubation, technology transfer, training and the commercial exploitation of the knowledge-base”.

The MICTI concept Research and Learning Institute Nurture entrepreneurial skills providing employment and wealth generation opportunities Address the dire need for skilled personnel in Mozambique and in the region Research and Learning Institute Science and Technology Park Technology and Business Incubator Participation of international and domestic organizations that will provide expert input, seed knowledge and innovation capacities. Source: MICTI Business Plan, 2002

The MICTI Model – Objectives Promote corporate R&D research activities between private industry, research institutions, and academia Provide a range of specialist support services and supporting start-up– business incubation, risk capital financing, R&D and product development, entrepreneurship development, management training, etc. Facilitate the development of business and technical know-how that contributes to fight against poverty through expanding citizen’s access to global knowledge resources and attracting foreign investment and new partnerships into Mozambique. Provide tenants with access to high quality, secure and reliable physical and communications infrastructure and services to tenants that minimize their operation and development cost Creating in Mozambique an anchor project in ICT related fields that reinforce the linking of the country into the Global Information Society.

The ICT industrialization Project: Recommendations Creation of an enabling environment that will allow more involvement of private sector in the production and delivering ICT products and services/solutions. Creation of a workgroup of professionals and practitioners to handle the task and implement flagship projects. The identified typical workgroups included following areas: Free and Open Source Software (FOSS); E-Learning and Online Content Creation; Information Security; Infrastructure Development. Improvement of education (Human Capacity Development) - as one of the drive forces for the sustainable development of ICT industrialization in Mozambique and Africa in general; Identification, motivation and supervision of future entrepreneurs; Use the MICTI project as model for innovation and entrepreneurship development.

The ICT industrialization Project: implementation of the findings Based on the above recommendations and on the strategic objectives of Mozambique Government the team proposed to implement a model which will contribute on the development of human resource and creation of entrepreneurs that will accelerate the development of ICT industry. Develop skills in the area of ICTs and management; Create opportunities to the youth to develop business in the area of ICT applications;

The Industrialization Model Mid-level course Business incubator Short term Research and Development projects Small Entreprise, Just after the incubation Small and medium Enterpriise – Existing in Market Decision Point Students/ MICTI client Enabling enviroment

The combination of the training and the incubation will: Increase the capacity of the existing ICT companies in term of the quality and diversity of the services (the ICT industry will grow in tem of quality and number of services); Increase the number of ICT companies in the market (grow the ICT industry in number); Create new Jobs and Increase the labor market (incubation); Exploit with innovative solutions new opportunities such us e-government/e-services, mobile applications (m-baking/mcomerce) Private sector and other ICT practitioners involved on training, curriculum development, supervision during the internship programs and mentoring on specific area.

Roll Out of the Model Start of the implementation of the Centre for Technology Development (CDT) -Transform the military barrack in centre of excellence in S&T; Start of the ICT mid-level professional course (18 mounts course including 6 mouths of internship); Graduation of the first 3 companies incubated at MICTI – each companies end up with a minimum of 3 employees; Research activities in low cost communication technology; Signature of MoU between the ministry of S&T with Sahara holdings to install a computer assembly line at CDT;

Conclusions S&T affect the degree of job-creation enhancing competitiveness increasing the demand for labor. To enjoy the positive effect of S&T its necessary: To have skilled human capital; To make the education system more demand driven; To develop a diversified science and technology infrastructure, and strong global niches in the IT industry; Promote investments in knowledge-related areas; Increase the role of the private sector and promote university-industry partnerships; Invest in research and development;

Thank you for your attention! http//www.micti.co.mz Thank you for your attention! sotomane@micti.co.mz www.micti.co.mz