October 2010

Round 2 Feedback Sessions DRAFT

Kenya, Rwanda, Tanzania, Uganda

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

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OVERVIEW

Purpose of • Review findings on key ICT SME challenges from

feedback first round of workshops held in September 2010
sessions • Present early draft version of vision and
interventions of ICT Business Engine
• Collect feedback on vision and interventions; solicit
names of partner organizations

Venues and • October 19: Nairobi, iHub

participants • October 21: Kampala, Hive CoLab
• October 28: Dar es Salaam, Twaweza
• October 30: Kigali, KIST

Participants • Nearly 50 participants across 4 countries including

25 returning participants from our first series of
workshops
• 90 participants across both sets of workshops in
September and October 2010

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ATTENDEE PROFILE
Total attendance Experience within ICT industry

~90% Number of surveyed participants

response 0-2 years 11
47 rate
42 3-5 years 10
6-10 years 10
11-20 years 5
21+ years 1
Attendance Surveyed N/A 5
(4 countries) participants

Type of ICT services provided Company size

Annual
Number of surveyed participants
revenues, USD Number of surveyed
Software 23 thousands participants
Network 16 15
0-50
Mobile 15 4
50-100
Content 14 4
100-500
2 tied 9 1
500-5,000
Respondents could select more than one category; other categories selected: 5,000+ 1
Data Centers (9), Hardware (9), Non-technical (8), Security (7), BPO/ Call
center (4), Other (3) N/a or non-profit 17

Date October 2010 Lead Javier Ewing (Excelsior) Ory Okolloh (Excelsior)
Locations - Nairobi, iHub Moderators Lauren Rawlings (Excelsior)
- Kampala, Hive CoLab
- Dar es Salaam, Twaweza
- Kigali, KIST

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Attendees across four countries for October sessions

Kenya Tanzania
October 19 October 28
Attendees Organization Attendees Organization
Angela Crandall Infodev/iHub Jonathan Kalan The (BOP) Project
Kariuki Gathitu Zege Technologies Iemmanuel Kanagisa Perfect Approach
James Muendo Timsoft Technologies Edwin Mwenda BIDC
Agatha Verdadaro The Can do ! Company Idrisa Kinyagu Zantel
Mark Misiko Geona Enterprises Felix Maganjila Marketing Partner
Fabian Owuor Adelphi Trading William Ndilla Quantum Computers
Charles Kithika Greendreams Ltd Richard Mushi E-Fulusi Africa
S. Ingabo Mama-mikes Mbutho Chbwaye Digital Brain Company Ltd
Dominic Mativo Xrystalgenius Peter Baziwe My Data
Tonee Ndungu Nailab Terence Silonda BIDC
Simon Ndunda Equisoft Technologies Albert Francis IT FARM
Henry Kago Front Gate
Larry Carl Keya Unlock Modems
Daniel Otieno Omondi Dotto Computer Agencies Rwanda
Ahmed Maawy Datadyne .org October 30
Marvin Oduor Transparency & Accountability Programme
Attendees Organization
Evans Owiti Construction & Admin
Nicolas Pottier Nyaruka
Casira Carol Eat Out
Alice Mukabalisa Hobuka
Robert Nsinga RwandAir
Uganda
Mwizerwa Carlos RDB- ICT
October 21
Benjamin Muhoza Partners in Health
Attendees Organization Keli Mutiso Moneta Capital – I.T.
Richard Zulu Time Info Company Albert Rwego Transparency - Rwanda
John Kibuuka Easysites/ Mountainbatten J. Paul Kavuna CITT/KIST
Solomon King Node Six Rajeev Aggarwal TBIF
Daniel Stern Hive Colab Iyaturemye - Aime Hobuka
Kitaka Felix FELLO Philotele Gahire CITT/ KIST
Majugo Gerald Komputa Nyirore Marie Claire KIST
Barbara Birungi Hive Colab

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SUMMARY OF ISSUES RAISED IN SEPTEMBER WORKSHOPS
Issues Participant comments Common themes

Access to • “We’re geeks. We need people who can market and

business skills communicate.” • Need to partner with
• “At university we learned how to code, but our professors don’t business professionals
know other things we need in the real world.”
• Need practical advice
Access to • “There is local money, but the networks are not transparent.”
financial • “I know I need some money, but I don’t know exactly how much.” • Need connections to
resources funders

Access to • “Nobody thinks we can do the jobs.” • Need mentors for

markets • “We don’t know when the tenders come out.” business model review
• “The government and the big companies would rather
outsource to foreign companies than have locals do the work.”
• Need forum for
• “There is no place for people to find my work.” discussing and
publicizing ideas
Access to • “The certifications people want are expensive. I have the skills, but I
technical skills can’t afford to pay the certificate fees.”
• “The schools teach computer sciences using theory—on the • Need to develop
chalkboard and from books—we don’t get practice.” communities of trust to
encourage idea sharing
Access to • “I don’t know how to find someone who can check my code.”
business • “These networking opportunities are priceless.” • Need trusted
networks • “If we worked together we could have capacity for big jobs.” intermediaries for
• “I wouldn’t tell someone my idea, because they might steal it.” rating, referring, and
• “We need to be organized to talk to government.” validating products and
• “I need to talk to someone who has done it before.” services
• “We need some mentors.” Similar themes
across the
Encouraging • “There is no legal protection for intellectual property.” countries
regulatory • “The government doesn’t make the companies work with us.”
environment

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TESTED - EA ICT VISION AND COMPONENTS

Overall Vision: An East Africa with a robust and dynamic ICT sector that
creates companies, jobs, and innovation that compete on the world stage.
1) Develop a Fully Connected Network: Create a networked community of trust
that collaborates as well as competes, and provides its members advice,
mentoring, financing, skills, and representation.

2) Launch Skills 2.0: Cooperate with academic and training institutions to ensure
that young East Africans have the full range of skills they need to be Ready for
Business.

3) Support Innovators: Support the start-up and growth of companies that create
innovative solutions to business and development challenges in the region and
beyond.

4) Enable Job Creators: Support the development of stable service companies

that generate employment opportunities for knowledge workers.

5) Upgrade the Business Environment: Improve business conditions in tangible

ways that enable citizens and international investors to build strong ICT
businesses in the region.

DRAFT – page 5

SESSION FEEDBACK
Feedback
Vision • Overall agreement with vision
• Considerable opinion that benefits for ICT
sector to impact East African broadly, not
strictly individuals and organizations directly • “This effort leeds to benefit all of [East Africa]
involved in industry
Interventions
1
Fully connected • Broad consensus across countries on
network importance of physical space and networks
linked to that space
• iHub was commonly cited example as best-
in-region currently
• Importance placed on independence of
space and network from institutional
agendas
• Mentors will need training and clear
responsibilities as well
• Some existing networks are too broad for
ICT SMEs (e.g., RICTA?)
• Bias to partner with corporations for training • “Universities need to focus on hands-on.”
2
and internships, with access to latest
Skills 2.0 technologies; however more meaningful
opportunities to learn must be developed
• Create training opportunities in the rural
areas as well
• Push back in Rwanda and Tanzania on
whether academic institutions are right
institutions to lead “practical” trainings
Consistent feedback in regular type;
Country/segment specific feedback in italics
Quotes
• “Could we add something about ICT 4D?”
• “We need to do something in ICT for the
villages.”
including the poor.””
• “We have good networks, they just need
support to reach more people and do more
physical meetings. Everything cannot be done
in a virtual network.”
• “Let’s not duplicate our [existing] networks, but
build capabilities within them”
• “We are funding the meetings and talks out of
our own pockets; knowing there was a solid
source of funding would increase the
perception of our networks.”
• “Colleges are academic places and not the
right places to learn the practical [side of
development].””
• “Internships are great, but give us the
opportunity to practice on real problems; not
made up items”.
• “Universities do not know the latest software,
they are teaching ones that are very out of
date.”
DRAFT – page 6
SESSION FEEDBACK
Consistent feedback in regular type;
Country/segment specific feedback in italics

Interventions Feedback Quotes

3 • Consistent feedback that financial
Innovator community does not understand ICT
support (Small industry business models, funding needs,
enterprises) and risk profile, so seed capital and working
capital availability are thin at best
• Mentorship and mix of business network,
business skill and financing was attractive to
participants
• Chamas (indigenous savings co-ops)
mentioned as a potential indigenous
solution; but similar risk and industry gaps
may limit impact
• “There is money for the local restaurant and
for the established business, but not for mine”
• “The banks don’t understand ICT at all”
• “It took us 9 months to get our financing from
the bank”
• “We need to educate the bankers and
investors.”
• “Chamas could be an answer, why don’t we
look into that?’”

4
Job creator • Positive response, if a bit out of scope for • We need the support to get to medium stage
support some session participants companies and also to be part of their supply
(Medium chains.”
enterprises)

5
• Positive, though acknowledgement that • “Getting an SMS short code is very hard for a
Business
results will take time. small business and it takes very long. It
environment
• Address specific ICT issues including creates a major delay to test and launch a
domain name squatting and short-code product.”
allocation

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POTENTIAL PARTNERS – BY COUNTRIES AS SUGGESTED BY
WORKSHOP PARTICIPANTS
Interventions Kenya
Kenya Rwanda

1
Fully connected
• iHub – already has physical space and critical • No dominant physical space or network although
mass of activity; structure required to formally KIST was an opportunity
network
build out the networks • Government/Rwanda Development Board
• Tandaa – as a network supportive of private organization creating a
• Other organizations mentioned included USIU, space
Strathmore
2
Skills 2.0 • University of Nairobi, Jomo Kenyatta University, • RDB engaged on in setting standards for training
Strathmore; Kenya ICT Board and providing funds for training (although current
participation is low)
• Academic institutions, both internal (KIST), and
external (e.g., Carnegie Mellon)
3
• Chama as a partner – though no specific Chama • Business plan competitions; RDB organizing
Innovator or Chama network was mentioned; Institute of business skills retreat
support (Small Electrical and Electronics Engineers; KICTANet
enterprises)

4
Job creator • Government procurement managers • Government - freedom of information efforts are
support (Medium • Large multinational IT firms early but expected to yield results in terms of
enterprises) content (e.g., GIS); donor / government
assistance with procurement

5
• Kenya ICT Board • Rwanda Development Board – marketing on new
Business efforts will be improving in the early 2011
environment

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POTENTIAL PARTNERS – BY COUNTRIES AS SUGGESTED BY
WORKSHOP PARTICIPANTS
Interventions Kenya
Tanzania Uganda

1 • Business network – Enablis, eThinkTank (as
Fully connected organized by some session participants), British
network Council, Costech, Tanzania Marketing
Association
• Physical space: no clear dominant space; group
sought independent leadership, e.g., not
academic and government affiliated
2 • University Computer Center – considered good
Skills 2.0 at building hands on skills
• Business skills – potential partners include
British Council, University of Dar es Salaam
Entrepreneurship Center, Tanzania Entrepreneur
Forum
• Physical space: Hive CoLab as a physical space,
with additional resourcing to improve attendance
• iNetwork
• Linux User Group – fairly active, if specific topic
area
• Makerere University; Kampala International
University; Uganda Communications
Commission Universal Service Fund

3
• infoDev incubator coming on-line in Q1 2011 • Hive Colab, Makerere University National
Innovator • No clear financing partners – a lot of “vulture Software Incubation Center
support capital” currently

4
Job creator • Not discussed in detail in this session • Government procurement managers; large
support multinational IT firms

5
• Advocacy partners include National Business • Not discussed in detail in this session
Business Council, Costech, Tanzania Private Business
environment Council, Tanzania Chamber of Commerce, and
Tanzania Investment Authority

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APPENDIX

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OVERALL SURVEY RESULTS
Includes feedback session attendees and additional respondents that were unable to attend workshops

Total attendance Experience within ICT industry

90 93
Number of surveyed participants
0-2 years 17
3-5 years 27
6-10 years 26
11-20 years 12
Session Surveyed 21+ years 2
attendance participants N/A 9
(4 countries)

Type of ICT services provided Company size

Annual
Number of surveyed participants
revenues, USD Number of surveyed
Software 49 thousands participants
Network 32 26
0-50
Content 31 13
50-100
Mobile 29 10
100-500
Hardware 22 6
500-5,000
Respondents could select more than one category; other categories selected: 5,000+ 4
Hardware(18), Other (16), Security (16), Data Centers (16), BPO (13)
N/a or non-profit 34

Date September and October 2010 Lead Javier Ewing (Excelsior) Ory Okolloh (Excelsior)
Locations - Nairobi Moderators Lauren Rawlings (Excelsior)
- Kampala
- Kigali Additional Victor Gathara (UKaid) Ellen Olafsen (infoDev)
- Dar es Salaam Moderators/ Tim Kelly (infoDev) Jill Sawers (infoDev)
Participants Lucy Mbaye (Excelsior) Steve Giddings (infoDev)

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TODAY’S AGENDA
Timing
Topic (minutes) Group size Objectives
A Introduction 15 • Full group • Provide brief overview of project and workshop
objectives, ground rules, and agenda
• Introduce each other and break the ice
• Determine profile of participants
B Issue kick-off 15 • Full group • Rank order issues to focus on issues of greatest
potential impact
• Understand root causes and provide example
for breakout session
C Breakout 45 • Breakout • Separate into teams to work on additional issues
“deep-dives” groups
• Understand root causes for each issue area
• Understand current status of interventions, best-
in-class examples and develop new solutions
D Breakout 25 • Full group • Report insights from breakout discussion
presentations • Develop full group consensus on findings and
priorities
E Next steps 5 • Full group • Provide summary and way forward

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