20101001 ea ict - round 1 feedback sessions - publication version

8/8/2019 20101001 Ea Ict - Round 1 Feedback Sessions - Publication Version

http://slidepdf.com/reader/full/20101001-ea-ict-round-1-feedback-sessions-publication-version 1/31

DRAFT – page 0DRAFT – page 0

Supporting ICT SMEsRound 1 Feedback: Kenya, Uganda, Rwanda, Tanzania

This report is solely for the use of the Excelsior Firm and client personnel. No part of it may becirculated, quoted, or reproduced for distribution without prior written approval from ExcelsiorFirm.

September 2010

DRAFT



DRAFT – page 1

Purpose of this document

• Summarize findings from the firstround of feedback sessions

• Share early findings with stakeholders

• Solicit feedback on early findings

• Stimulate discussion on how best tosupport East African ICTentrepreneurs

Note:

• These are early findings

• Additional inputs will beincorporated before finalizing theproposed interventions



page 2

ATTENDEE PROFILE

Date September 2010

Locations - Nairobi, iHub (2 sessions)

- Kampala, Hive CoLab- Kigali, KIST

- Dar es Salaam, Heritage Hotel

LeadModerators

Attendance

(4 countries)

Ory Okolloh (Excelsior)

AdditionalModerators/Participants

Victor Gathara (UKaid)

Tim Kelly (infoDev)

Lucy Mbaye (Excelsior)

Ellen Olafsen (infoDev)

Jill Sawers (infoDev)

Steve Giddings (infoDev)

Total attendance Experience within ICT industry

Type of ICT services provided Company size

68

58

Surveyed

participants

Javier Ewing (Excelsior)

Lauren Rawlings (Excelsior)

7

21

18

6

4

2

15

4

9

2

3

25

0-50

50-100

100-500

500-5,000

5,000+

N/a or non-profit

29

21

19

17

13

Software

Mobile

Content

Network

Security

Respondents could select more than one category; other categories selected:Non-technical (10), Data Centers (9), BPO/Call Centers (9), Hardware (9), Other (8)

85%

responserate

Annual

revenues, USD

thousands

Number of surveyed participants

Number of surveyed

participants

Number of surveyed participants

0-2 years

3-5 years

6-10 years

11-20 years

21+ years

N/A



DRAFT – page 3

Feedback session takeaways

Access tobusiness skills

Access tofinancialresources

Access tomarkets

Access totechnical skills

Access tobusinessnetworks

Encouragingregulatoryenvironment

Participant comments Common themes

• ―We’re geeks. We need people who can market andcommunicate.‖

• ―At university we learned how to code, but our professors don’t

know other things we need in the real world.‖

• “There is local money, but the networks are not transparent.‖

• “I know I need some money, but I don’t know exactly how much.”

• “Nobody thinks we can do the jobs.”

• “We don’t know when the tenders come out.”

• ―The government and the big companies would rather outsource to foreign companies than have locals do the work.‖

• ―There is no place for people to find my work.‖

• “The certifications people want are expensive. I have the skills, but I

can’t afford to pay the certificate fees.”

• “The schools teach computer sciences using theory—on thechalkboard and from books—we don’t get practice.‖

• “I don’t know how to find someone who can check my code.”

• ―These networking opportunities are priceless.‖• ―If we worked together we could have capacity for big jobs.‖

• ―I wouldn’t tell someone my idea, because they might steal it.‖

• “We need to be organized to talk to government.”

• ―I need to talk to someone who has done it before.‖

• ―We need some mentors.‖

• ―There is no legal protection for intellectual property.‖

• “The government doesn’t make the companies work with us.”

• Need to partner withbusiness professionals

• Need practical advice

• Need connections tofunders

• Need mentors forbusiness model review

• Need forum fordiscussing andpublicizing ideas

• Need to developcommunities of trust toencourage idea sharing

• Need trustedintermediaries forrating, referring, andvalidating products andservices

Issues

Similar themesacross thecountries



DRAFT – page 4

Emerging interventions

Provide seedcapital culture

Governmentcontractingsmall businessset-asides

Create networkgroups andevents

Support skillsdevelopment

Knowledge basefor businessesin the region

Description Issues Addressed

• Provide funds (andexpertise) for entrepreneursto take demos to fullconceptualization

• Government tenders couldrequire that certain classesor value of services beprovided by micro and smallbusinesses

• Create organizations andevents that bring togetherICT entrepreneurs

• Create spaces forentrepreneurs to work andmeet

• Provide on the job trainingand scholarships training

programs• Develop integrated

computer sciencecurriculum (esp. Rwanda)

• Document process to set upSMEs in each country,including key resources.

• Write up local success

stories

• Poor access to capital• Poor access to business networks• No R& D investment

• Poor access to markets: customers

• Access to business networks• Poor representation in policy

discussions

• Access to technical skills: sometechnicians need to update

knowledge and qualifications, self-taught technicians may not be ableto afford certifications to prove skills

• Need practical and business skills

• Poor access to business skills

Potential PartnerOrganizations

• Local angel investors;chamas, mulitlateral andbilateral donors; diaspora

• National and provincialgovernments; multilateraland bilateral donors

• Business leaders;universities and colleges;incubators, donors andfoundations

• Large corporates,universities and technical

colleges; training firms,donors and foundations

• Business incubators (e.g.,iHub); universities;successful entrepreneurs;bilateral and multilateral

organizations

Intervention

Potential interventions with donorcommunity leadership



DRAFT – page 5

Next steps

Secondroundsessions

• Kenya – Tuesday, October 19

• Uganda – Thursday, October 21

• Tanzania – Tuesday, October 26

• Rwanda – Thursday, October 28

Draft – firstround

• First full draft available for next consortium teammeeting during the week of October 11-15


http://slidepdf.com/reader/full/20101001-ea-ict-round-1-feedback-sessions-publication-version 7/31DRAFT – page 6

KENYA SESSION DETAILS



Kenya attendee profile – 14 September 2010

Date 14 September 2010

Location Nairobi, iHub

Time 2 sessions:- 10am-12pm

- 2pm-4pm

LeadModerators

Attendance

(2 sessions)



Victor Gathara (UKaid)


Tim Kelly (infoDev)

Lucy Mbaye (Excelsior)



2529

Surveyed

participants


4

3

8

4

4

2

0-2 years

2-5 years

5-10 years

10-20 years

20+ years

N/A

1

4

1

2

7

0-50

50-100

100-500

500 – 5,000

5,000+N/a or non-profit

109

8

7

7

Software

Content

Mobile

Security

Network

12

Respondents could select more than one category; other categories selected:Non-technical (5), Other (3), Hardware (3), Data Centers (3), BPO/Call Centers(2)

86%

responserate

Annual

revenues, USD

thousands

Number of participants

Number of surveyed

participants




Takeaways from Kenya sessions – 14 September



Access tomarkets




Issues raised Interventions suggested

Common themes• Understanding investorrequirements

• Forecasting financial needs• Need to educate investors

• Need virtual market places• Need market data• Finding trustworthy

suppliers/partners

• Self-taught technicians maynot be able to affordcertifications to prove skills

• Need ICT-specific businessnetworks

• SME need and contributionsoverlooked in policydiscussions

• Create directory of people withbusiness skills (lawyers,accountants, etc) who are willing towork with entrepreneurs

• Revolving fund for seed capital;create seed capital culture

• Partnerships with vendors toreduce working capitalrequirements

• “Show and Tell” sessions to

present demos, not just ideas

• Provide on the job training andscholarships for formal training/ continual education programs

• Develop ICT-specific businessnetwork

• Designate a formal SMErepresentative to participate in ICTpolicy discussions

• Need mentors forbusiness model review

• Need to developcommunities of trust toencourage idea sharing

• Need practical advice(e.g., how to register abusiness)

• Need forum fordiscussing andpublicizing ideas

• Need trustedintermediaries for rating,referring, and validatingproducts and services



Intervention capture sheet – Access to business networks

Date 14 September 2010Location Nairobi, iHub

Time 10am-12pm

Participants Fabian and others

Intervention name Improving access to businessnetworks

Issue type: Access to business networks

Current states Idea generation

Issues to be addressed Description

Successful interventions Resources required

Other efforts Expected impact

• Lack of mentoring

• large business not interested in partnering with small business

• More resources on IP education

• Facilitate sharing ideas in safe environment

• Provide safe environment within the context of seed funding

so that there is incentive and a penalty for violation e.g.

similar to Chama network

• Share case studies of open businesses and successful ones

especially local

• Scorecard for SME procurement for big business

• AIESEC as an example of network

• Digital villages as outreach but can entrepreneurship be

linked to this e.g. show and tell not just in iHub type spaces

• Create multiple idea sharing environments e.g. business clubs

in school, speed dating equivalent, match making site.

• More here’s how to get to the next step kind of documentation

• • Ability to leverage business networks

Moderator - Ory



Intervention capture sheet – Access to finance


Time 10am-12pm

Participants Victor (UKaid)Daniel

SaudEvansAhmed

Intervention name: Encouraging environment for seedfunding; commercial/trading finance

Issue type: Access to finance





• Ability to raise seed/Series A financing

• Access to trade/commercial finance (e.g., invoice financing,

bonds for contract for major vendors)

• Leverage Kenyan resident and diaspora successful business

leaders as angels; major Western programs e.g., Google

Series B financing programme in EA

• Partnerships with banks and vendors to structure financialvehicles

• Silicon Valley culture of raising funds and access to

mentorship

• Angel identification and roles/responsibilities delination

• Process to bring transparency to metrics and development

milestones

• Most financial instruments are essentially non-convert debt,

and are seemingly scarce

• Invoice financing is also not popular

• Significant headway against “bootstrap” challenge

• Considerable set of entrepreneurs graduating to “Series B”

early VC stage

Moderator - Javier



Intervention capture sheet – Access to human capital


Time 2pm-4pm

Participants SimonMark

JamesJames

Intervention name Upskilling young businessmanagers

Issue type: Access to business and technical skills





• Business and client development

• Project management skills

• Certification is too expensive for many entrepreneurs

• Employers and potential suppliers look for certification insteadof proof of skills

• Project management classes and mentorship (e.g., review of

workplans/proposal)

• Creative certification financing (e.g., forgiveness through

community service, loans for certification)

• None mentioned • Strategy and project management mentors

• On-line web training facilities

• None mentioned • Greater competitiveness in proposals process

• Improved project fulfillment

Moderator - Javier





Time 2 pm-4pm

Participants MartenJoseph

ZeblonDaniel

Intervention name: Mobilizing and using early capital Issue type: Access to financial resources





• Lack of business skills

• Poor access to markets

• Little trust among entrepreneurs

• e-Procurement: putting government contracts online to allow

SMEs to see what is available and to build transparency and

trust

• m-Education – using mobile phones for delivery of training

• mLab – building sustainable businesses in mobile apps

• Market analysis – up to date market data

• SME Solutions Centre (IFC)

• Rural Livelihoods plan (World Bank)

• Tactical Technology Collective (Hivos)

• Short-term projects with a focus on social change or building

donor awareness

• Too much focus on “museum” applications, or over -fundedareas like AIDS

• Kenya ICT Board challenge (not enough focus on SMEs)

Moderator - Tim





Time 2 pm-4pm

Participants GopalAllan

SegeniKenJuliann

Intervention name: Mobilizing and using early capital Issue type: Access to financial resources





• Access to early money

• Access to investors

• Communicating financial requirements

• Using invested capital wisely

• Provide seed capital along with expert advice

• Tandaa competitive grants for local content development

• Youth Fund

• Google Foundation support for test message applications

• Need successful ICT executives to mentor/advise start-ups

• Need donors to initiate matching/revolving fund alongside

indigenous investors

• Ability to formalize business and attract further financing

Moderator - Lauren





Time 2 pm-4pm

Participants GopalAllan

SegeniKenJuliann

Intervention name: Creating networks of ICTEntrepreneurs






• Need people to provide feedback on ideas

• Need to understand latest trends and happenings

• Need trust-based community

• Create ICT-specific networks

• Create “Show and Tell” events for demonstrating and

publicizing promising concepts

• iHub

• BNI

• Enablis

• Physical location for convening (eg iHub, Digital Villages)

• Network manager

• Feedback on ideas and business concepts

• Opportunities to meet potential supplier or partners

Moderator - Lauren



UGANDA SESSION DETAILS



Uganda attendee profile – 16 September 2010


Location Kampala, Hive CoLab

Time One session: 2pm-4pm

LeadModerators

Attendance

(2 sessions)



Tim Kelly (InfoDev)



11

8

Surveyed

participants


0

4

4

0

0

0

0-2 years

2-5 years

5-10 years

10-20 years

20+ years

N/A

1

2

0

0

4

10-50

50-100

100-500

500 – 5,000


6

6

5

5

4

Mobile

Content

Network

Software

BPO

Respondents could select more than one category; other categories selected:Security (3), Data Center (3), Other (2), Non-technical (1)

73%

responserate

Annual

revenues, USD

thousands


Number of surveyed

participants





Takeaways from Uganda sessions – 16 September



Access tomarkets





Common themes• Computer Scienceeducation does not provide

practical skills such asproject management

• Need finance, marketingand other business support

• No investment in R&D

• Need virtual market places• Need to establish credibility

of local talent

• Need ICT business network

• Need local success stories• Need mentors and advisors• Need a place to convene

• Start-ups and micro/smallbusinesses not able to bidon government tenders

• Poor IP protection

• More integrated curriculum• Team up with “marketing hackers”

and other business experts

• Develop certification and ratingsystem


• IdeaLab• Celebration of success• ICT Business clubs at universities

• Require government contractors topartner with small businesses

• Increase government interactionand lobbying

• Need mentors forapplication and ideareview

• Need communities oftrust to encourage idea

sharing

• Need practical advice(e.g., how to register abusiness, how to dogovernment tenders)

• Need forum fordiscussing and

publicizing ideas

• Need trustedintermediaries for ratingand referring productsand services




Date 16 September 2010Location Kampala, Hive CoLab

Time 2 pm-4pm

Participants

Intervention name: Creating networks of ICTEntrepreneurs






• Need people to provide feedback on ideas

• Need to understand latest trends and happenings

• Need trust-based community

• Less focus on capital raising

• Create ICT-specific networks

• Developer/app showcase

• iHub-type place

• IdeaLab

• iHub

• Cape IT Initiative

• Mobile Monday• IdeaLab

• Physical location for convening (Hive CoLab)

• Network manager

• Feedback on ideas and business concepts

• Opportunities to meet potential supplier or partners

Moderators – Javier & OryDouglasMichael

SolomonRichardArnoldEmmanuel

JosephSimon

RevenceDanielTim (infoDev)Lauren (ExF)



Intervention capture sheet – Access to business markets

Date 16 September 2010Location Kampala, Hive CoLab

Time 2 pm-4pm

Participants DouglasMichael

SolomonRichardArnoldEmmanuel

JosephSimon

RevenceDanielTim (InfoDev)Lauren (ExF)

Intervention name: Small business tender support Issue type: Access to markets





• Need to understand tender process

• Need help preparing tenders

• Need to develop credibility of local small businesses

• Increase interaction with government

• Mentoring on project management and tender process

• Business Uganda Development Services (BUDS) – program

to help small businesses respond to tenders. No longer

active.

• Successful entrepreneurs

• Government liaison

• Local small business contracted for government work

Moderators – Javier & Ory



RWANDA SESSION DETAILS


http://slidepdf.com/reader/full/20101001-ea-ict-round-1-feedback-sessions-publication-version 22/31page 21

Rwanda attendee profile – 28 September 2010


Location Kampala, Kigali Institute of

Science and TechnologyTime One session: 10am-12pm

LeadModerators

Attendance

(2 sessions)




17

14

Surveyed

participants


29

2

1

0

0

0-2 years3-5 years

6-10 years

11-20 years

21+ years

N/A

0

1

0

0

10

30-50

50-100

100-500

500 – 5,000


7

4

4

4

2

Software

Network

Hardware

Non-tech.

3 tied

Respondents could select more than one category; other categories selected:Data Center (2), Mobile (2), Other (2), BPO/ Contract Center (1), Content (1),Security (0)

82%

responserate

Annual

revenues, USD

thousands


Number of surveyed

participants




Takeaways from Rwanda sessions – 28 September



Access to

markets





Common themes

• Computer Scienceeducation does not providepractical skills such asproject management

• Need introductions to thepeople who have money toinvest

• Even local clients would

rather hire a foreigner than aRwandese company for ICTproject

• University training is verytheoretical with little practiceor experimentation

• RICTA (the current ICTnetwork) doesn’t provide

any services to members• Need mentors and advisors

• ICT4D policy is focused oninfrastructure; does not helpSMEs

• Government tenders are toohard for SMEs to respond

• Poor IP protection

• More integrated curriculum• Internships

• Three-year tax holiday forbusinesses started by youngRwandese (5 years for females)

• Develop certification and rating

system• Require government contractors to

partner with small businesses

• Provide more access to computerlabs and upgrade equipment


• Increase government lobbying forSME

• Need practical skills

• Need mentors forfeedback on technicaland business ideas

• Need communities oftrust to encourage ideasharing

• Need trustedintermediaries for ratingand referring productsand services



DRAFT – page 23

Intervention capture sheet – Access to financial resources

Date 28 September 2010Location Kigali, KIST/CITT/TBIF

Time 10 am - noon

Participants SabinPhilotele

NtaroChristianBinjaminStevenson

AlbertRajeev

NicoleNtareTheonsteJean Claude

AliceJ.Paul

NicolasRobertAbraham

Intervention name: Startup tax break Issue type: Access to financial resources





• Even if it does not take much capital to start a business, there

needs to be enough to keep the business going in the early

days

• Banks will not lend without collateral

• Provide a tax holiday for young entrepreneurs starting a

business. For the first three years after registration (five years

if business owner is female) business income will be be tax

exempt.

• None mentioned • SME lobbying

• Local small businesses will be able to re-invest more of their

earnings into their business the first few years.

Moderators – Javier & Lauren

• None mentioned



DRAFT – page 24

Intervention capture sheet – Access to business network


Time 10 am-noon


NtaroChristianBinjaminRobert

AlbertRajeev


AliceJ.Paul

NicolasStevensonAbraham

Intervention name: Business associationstrengthening

Issue type: Access to business network





• Poor business networks and access to investors

• Current association does not provide enough services to

warrant membership dues

• Does not meet needs of SMEs

• Re-launch the ICT business association with a series of

programs that are valuable to members, eg, negotiating

preferential rates for training for SMEs

• None mentioned • New leadership or management for association

• Support for programming

• Improved access to finance, business contacts, information

and mentors through the network


• Rwanda ICT Association (RICTA)



DRAFT – page 25

Intervention capture sheet – Access to skills


Time 10 am-noon


NtaroChristianBinjaminRobert

AlbertRajeev


AliceJ.Paul

NicolasStevensonAbraham

Intervention name: Enhancing computer scienceeducation

Issue type: Access to business and technical skills





• Computer science curriculum is too theoretical

• Students do not learn the specialist skills required in industry

• Students do not have opportunities to do much practical work

or experimentation• Students do not learn business skills

• Internships

• More integrated curriculum

• None mentioned • Businesses willing to work with student interns

• Curriculum development specialist

• Soecialist training and certification courses

• Graduates will be better prepared for real world IT work


• None mentioned



DRAFT – page 26

TANZANIA SESSION DETAILS



page 27

Tanzania attendee profile – 29/30 September 2010

Date 29/30 September 2010

Location Dar es Salaam, Heritage Hotel

Time Two sessions:29 Sept 7pm-8:30pm

30 Sept 10am-12pm

LeadModerators

Attendance

(2 sessions)





11 11

Surveyed

participants


1

5

4

1

0

0

2

2

1

0

5

10-50

50-100

100-500

500 – 5,000

5,000+

N/a or non-profit

5

5

3

3

2

Mobile

Software

Network

Content

3 tied

Respondents could select more than one category; other categories selected:BPO/ Contact Center (2), Data Center (2), Hardware (2), Secutiry (1), Other (1),Non-Technical (1)

100%responserate

Annual

revenues, USD

thousands


Number of surveyed

participants


0-2 years3-5 years

6-10 years

11-20 years

21+ years

N/A

Ellen Olafsen (infoDev)

Jill Sawers (infoDev)

Steve Giddings (infoDev)



DRAFT – page 28

Takeaways from Tanzania sessions – 30 September



Access tomarkets





Common themes

• “Many guys who know ICT

don’t have skills for small

business.”

• “I have a good business

idea, but I don’t know how to

do the analysis.”

• “Even with a degree I am

now paying for a businesscourse. “

• Investor community is onlyknown through informalsocial networks

• Need to establish credibilityof local firms and talent

• Need technical equipmentand software to practice

• University computer lab

does not have modernequipment

• Need ICT business network• Need mentors and advisors

• Start-ups and micro/smallbusinesses not able to bidon government tenders

• More integrated curriculum• Internships• Access to specialized training

courses

• Develop formal network of ICTangel investors

• Develop certification and ratingsystem

• Upgrade university computerfacilities and provide open accessfor students


• Require government contractors topartner with small businesses

• Increase government interaction

and lobbying

• Need mentors forapplication and ideareview

• Need communities oftrust to encourage idea

sharing

• Need practical advice(e.g., how to register abusiness, how to dogovernment tenders)

• Need trustedintermediaries for rating

and referring localproducts and services




Date 30 September 2010Location Dar es Salaam, Heritage Motel

Time 10am-noon

Participants NadeemRichard

S. R.PeterTerenceSuhail

Intervention name: ICT SME Association Issue type: Access to business networks, markets, andfinance





• Only informal access to investor networks

• Need to develop credibility of local small businesses

• Need to know who peers and potential partners are

• Create an association of ICT entrepreneurs

• None mentioned • Dynamic group leadership

• Support for programming

• Successful business leaders willing to invest in startups andprovide mentorship

• Local small business are able to access markets, information,

and finance through the association


• World Bank incubator will provide mentorship and skills

development, opening in March 2011 – value proposition

seemed to appeal to entrepreneurs considerably

20101001 ea ict - round 1 feedback sessions - publication version

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