The first Industry Insight in this series implied there were three sources of funding and areas of opportunity for ICT investment in Africa, namely: international aid organisations, African governments and investment by companies.
How 'appropriate information technology' (AIT) is addressed can play a significant role in securing funding, particularly from donors, but also from governments. In the case of corporate funding, the role of AIT is related to the sustainability of sales - if it works for the users, they will buy it.
But, what are the basic, logical steps to follow? What are the keys to getting it right in Africa - the "five imperatives"?
This Industry Insight provides some logical guidelines to accessing Africa. These are just some personal thoughts, and I make no claims to possessing any 'silver bullet', or that this is the definitive, complete approach. I have also made no effort to discuss financial models, as this is best left to the financial experts.
On your marks
My focus is on how to secure a starting block in the ICT race for Africa, and my feeling is that, with the introduction of mobile devices in many African countries, the race is now in progress.
If companies want to try for funding from international donor organisations, they need to:
* Research who is doing what and in which Africa country - basically, who is handing out what, to which country, to whom within the country and why.
* In addition, the company will need to research these funding organisations themselves and home-in on their "pet projects".
* Research the countries where these organisations want to give aid or in which they have the potential to work. Be very knowledgeable when approaching the organisation (and make sure to quote and agree with their research findings) or the end result will be a lack of any meaningful projects.
* Look at what the company can do - or is already doing, and align these offerings with the mission of the donor organisation.
* Expect a significant amount of back-and-forth communication and long lead times. Nothing happens quickly in this environment, because management tends to take place via committee, and issues such as limited funding and unlimited requirements comes into the decisions-making.
* Express altruistic motives (hopefully genuine).
To go for funding by the government of the country:
With the introduction of mobile devices in many African countries, the race is now in progress.
* Research the country's actual needs (not what the company thinks they need). Put the company in the government's shoes.
* Look at the country's policies and preferences and which companies it likes to do business with.
* If the company is not currently operating in that country, it will need someone on the inside (and the more 'inside' the better) who can access all tenders and reach decision-makers.
* If necessary (and the company has something to offer which is appropriate to the need), make an unsolicited offer.
* Emphasise the company's offering is AIT and show the clear advantages it has over other solutions.
* Emphasise the company's "African-ness" and its experience in Africa.
Going it alone with the company's own product (corporate funding):
* Research, research, research all the African countries where there is an upswing in ICT usage and where infrastructure has been implemented or is being put in place.
* Find one or more countries where the offering matches a real need.
* Focus on AIT, and this means looking at the potential users, their cultures and ICT literacy levels.
* Find out who the company can viably partner with - small, hungry IT companies who have some 'edge' or leverage in the country.
In summary, the five imperatives for going African:
1. Know and understand what funding space the company wants to (and can) play in and why it feels it is worth playing there.
2. Know in which countries the company wants to play and why (taking into account infrastructure, level of ICT sophistication of the users, per capita income, and GNP).
3. Really know the people and their needs so that the company knows what will be genuinely appropriate for their usage.
4. Know the 'politics' - national and local politics, who are the 'movers', the business politics, etc.
5. Know what it is going to cost the company to get there'
* Time - for researching, lobbying and simply waiting for something to happen.
* Money - the cost to play just to get there and then the cost to deliver.
* The market - not the population statistics, but how many are actually likely to need and be willing to pay for the offering. In Africa, as is the case all over, they will all want it, but they will want it for free.
The take-away from this series of Industry Insights is this: if it is not appropriate (AIT), do not expect it to 'fly' or be sustainable in Africa.
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