digital artefact taf by agunbiade seun richards
TRANSCRIPT
TECHNOLOGY ACQUISITIONFUND (TAF) forDeveloping nationsUnited Nations SDGs 2016-30: Using Technology to Finance Infrastructural Development
By - Agunbiade Seun Richards,December, 2015
Content Layout
• Overview
• Proposal
• Global Facts on Technology
• Infrastructural development needs
• Source and Usage of Fund
• Methodology
• Challenges
• Conclusion
Overview
According to the Joint report (2013) of 31 multilateral and bilateral development finance institutions, finance availability is likely to continue to be a critical issue in developing countries for over the next decade. This is because of the significant increases in expected investment demand, as the growing economies in the developing world are likely to be in continuous need of huge investment capital for enormous infrastructural development purposes beyond what the public sector alone can meet.
As a result, we need to seek new sources of funds through the private sector.
In this proposal, we are seeking funds from the technology industry.
Proposal
In the last two decades, the technology industry has recorded the most significant and perhaps highest growth in the industries, so much that the IT sector itself dictates how fast and far any other industry can grow. This trend is not likely to slow down in the two decades, with the advent of newer technologies that will drive global economies in all facets of human endeavor.
Thus, it is wise to tap into the latent pool of resources that we stand to derive, if we harness our strategy to bring the much needed trillions to drive development across the developing and under developed economies.
This can be achieved by developing a financial instrument in the form of a “Technology Acquisition Fund (TAF)” where tech companies contribute tax-deductible funds to drive the needed development across the globe.
Global Spending on IT is ever increasing
With emerging technologies like Big data, 3D printing, Robotics, Cloud computing, Online ads, machine learning software and Internet of Things (IoTs), the expected spending cum revenues will double in 5 years.
Rapid population growth in developing nations will contribute to global spend and adoption of new technologies.
Infrastructural development funds needs
According to IFC report, the estimates of annual capital investment needs of the developing nations are stated below :
1. $93 billion per year in Sub-Sahara Africa for infrastructure (with only $40 billion currently being invested).26
2. $140-175 billion per year for climate change mitigation in developing countries by 2030.27
3. $83 billion per year in agriculture in developing countries.28
4. $25–30 billion in Sub-Saharan Africa for hospitals, clinics and medical distribution warehouses.29
Sources & Usage of the Technology Acquisition Fund
Classes Classification Global fund contribution
Developing & High incomeNations
High-density populated nationsE.g. India, Nigeria, Indonesia, Brazil,
Turkey, Mexico,
Estimated 50% of global funds
Most funds will be generated.
Developing & Middle-IncomeNations
Mid-density populated nationsE.g. Poland, Philippines, Egypt, Ukraine,
Vietnam, Bangladesh
Estimated 30-35% of global funds
Less fund will be generated.
Least developed & Low income Nations
Low-density populated nationsE.g. Sudan, Somalia, Afghanistan, Peru, Nepal, Haiti, Yemen, Tuvalu, Vanuatu
Estimated 15-20% of global Tech funds.
Least funds will be generated.
Supported by: ICF International, Demographic and Health Surveys
Methodology
Identify Tech Companies
Adoption of Technology
Fund
Generate fund via Products
Sales
Re-invest proceed to economies
Apple Microsoft Samsung Oracle IBM Samsung Lenovo Kaspersky etc.
Govt. policy Regulation UN adoption Remove Red-tape Encourage CSR Identify funds as
tax-deductible
Product sales Services Promotions Campaigns Offerings
Identify viable projects Fund projects Monitor projects Partner project initiators Fund creative ventures Develop infrastructure Evaluate results
Challenges
The current challenges that the promulgation of the fund may face include:
1. Government policy and other regulations to adopt the fund.
2. Double-taxation problems on corporate organization
3. Lack of viable projects to drive the needed infrastructural developments
4. Difficulty to match revenue from growth markets with specific nations
5. Lack of good governance to manage the funds and projects
6. Reluctance of technology companies to contribute to such funds
7. Bureaucracy and multi-level obstacles to adoption policy document
In conclusion, Technology Acquisition Fund (TAF) will be invested into infrastructural developments such as :
1. Power & Water generation2. Education & Training 3. Provision of security4. Transportation – road & rail5. Broadband & Telecoms