EMPIRICAL

PRESENTATION OF
RWANDA’S ICT SECTOR.
NTALE PETER DITHAN
MSC.MARKETING
MAKERERE UNIVERSITY BUSINESS
SCHOOL

Email : Peter.ntale@gmail.com

Cell # +256 782 914570.

 Contents

• Introduction

• The role of ICT in Economic development

• Situational Analysis of ICT sector in Rwanda

• The place of ICT in implementation of Vision 2020

program

• SWOT Analysis of ICT sector in Rwanda

• Summary and Recommendations

Good Governance
and a Capable
State

HRD and
Knowledge based
Economy

A Private sector-
led Economy
EDPRS, 2012

Infrastructure
MDGs, 2015

Development
VISION 2020

Productive and
Market oriented
clear and defined program

Agriculture

Regional and
International
2020

Economic
cross-

Vision
Rwanda’s Economic Development is based on

area of
cutting
ICT is a

Integration
 ICT is an engine of economic performance
for countries

A reduction of transaction ICT has drastically cut long-

costs and times can help standing obstacles to
developing countries to take communication: time and
advantage of the opportunities distance. New
resulting from trade communication technologies
liberalization. allow companies to source
inputs independent of
location.
Reduction of transaction costs
Increase productivity
New trade opportunities
Access to knowledge
Increase competition
Better communication

ICT can also facilitate the rapid The ICT-induced changes are
growth for foreign direct transforming the rules of
competition and giving rise to new
investment (FDI) allowing global
types of competitive strategies:
business management along the
innovation-driven competition, time-
whole supply-chain through based competition; mass
effective information and customization; lean manufacturing,
communication networks. and demand-driven, built-to-order
products (Fine, 1998).
ICT Competitiveness refers to a country’s
capacity to exploit Information and
communication technology in order to
effectively participate in the global
information economy.

ICT ICT
Infrastructure Environment

ICT
Competitivene
ss

ICT Laws
Human
Resources

5
 … and investments in SSA are mostly
concentrated on ICT
Telecom FDI versus Total FDI in SSA (2000-2004)

35% of
total FDI
in SSA was
from
Source: World Bank WDI (2007) telecom
All over the world, the Mobile Phone
witnesses a spectacular penetration rate in
one decade
Global ICT Development, 1998-2008

70
Fixed telephone lines
60 Mobile cellular telephone subscriptions
Internet users
50
Per 100 inhabitants

Fixed broadband subscriptions

40 Mobile broaband subscriptions

30

20

10

2006
1998

2000

2001

2002

2003

2004

2005

2007

2008

Source: International Telecommunication Union, 2008

As in many other countries, Rwanda recorded
a spectacular increase rate of Mobile phone in
one decade
ICT Penetration in Rwanda (2000-2009)

1600000

1400000 Mobile subscribers

Fixed phone subscribers
1200000
Internet subscribers
1000000 Rural phones

800000

600000

400000

200000

0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Source: RURA, 2009

 In comparison with its counterparties of the
EAC, Rwanda is not yet attractive in terms of
ICT penetration
ICT Penetration in the EAC
60
Countries, 2008
Internet users per100inhab.
Mobilesubscribers per 100inhab.
Fixedphoneper 100inhab.
50
8.71
6.93

40

1.25 7.84
30

42.11 38.54
20
3 31.37
26.82

10 15.5
0.73
5.43
3.38
0.34 0.65 0.17 0.3 0.53
0
Burundi Kenya Rwanda Tanzania Uganda Africa

Source: ITU, ICT indicators,

2009
Fixed phone penetration is growing slowly even
in many cases decreasing. Rwanda remains on
the bottom of the list of EAC Countries

FixedphonespenetrationinEACCountries, 2000
-2008

4
Africa
3.5
Burundi
3
Kenya
2.5
Rwanda
2
Tanzania
1.5
Uganda
1

Africa
0.5
Rwanda
0
2000 2001 2002 2003 2004 2005 2006 2007 2008

10
…. and Mobile phone penetration is growing
rapidly in all countries and Kenya is above the
African average.
Mobile phone penetration in EAC Countries, 2000-2008

45
Kenya
40
Africa
35
Tanzania
30
Uganda
25

20
15
Rwanda
10
Burundi
5

0
19 9 9 2000 200 1 2002 2 0 03 2 00 4 2 00 5 2 0 06 20 07 2 0 08 2 009

11
Internet is also growing significantly
particularly in Uganda.
Internet penetration rate in EAC Countries, 2000-20008

Source: ITU, 2008

12
 Mobile phone and internet penetration rate
reached more than 1000% in EAC countries in
one decade
% of Mobile phones penetration in 2000-2008 % of Internet penetration in 2000-2008

12000
5000
10000
4000
8000
3000 5000 4900
6000 10026
9803
4000 2000
2639
5157 1000
2000 2695 1041 1260
2172 2025 912
0 0
B u r u n dKi en y aR w a n dT a n za nUi ga
a n d aA fr i c a Bu ru n d iK e n ya Rw a n d Taa n za n ia
U ga n d a A frica

13
As ICT network infrastructure is currently
concentrated in Kigali City, ICT penetration rate
is also higher in Kigali in comparison with
Provinces

Total Total HH with phones

Fixed & M obile Phones
Eastern Prov. M obile Phones
Fixed Phones
Northern Prov.

Western Prov.

Southern Prov.

Kigali City

0 2 4 6 8 10 12 14 16

14
Due to ICT market liberalization, the monopoly
spirit is broken with participation of different
companies to the market.
Number of telecom network operators and their respective
Service number of subscribers
Licensed Operators Number of Market share
Subscribers (%)
Fixed Telephony Rwandatel 16,770 99.5%
MTN Rwandacell 82 0.5%
Artel International* 0 0%
Mobile Telephony MTN Rwandacell 1,158,674 87.6%
Rwandatel 163,963 12.4%
Internet Service Rwandatel 4,187 49.5%
Provision ISPA 67 0.79%
MTN Rwandacell 4,021 47.6%
New Artel 151 1.78%
Altech Stream Rwanda 19 0.22%
Value Data Rwanda* 0 0%
Star Africa Media* 0 0%
Greenmax* 0 0%
Augere Rwanda* 0 0%
Comium* 0 0%

Pay-TV GTV 617 8.49%

Star Africa Media 5,105 70.26%
Tele 10 Source : RURA, 1,543 21.23%
December 2008
The more ICT Market enters into open
competition, the more consumers are getting
better services.
ICT Basic services and tariffs

Basic service per minute 2004 2005 2006 2007 2008 2009
local call proj.
Fixed line usage tarrifs 14 14 33 33 33 33
Fixed line installation charges 30,000 30,000 30,000 30,000 30,000 30,000
Mobile contract usage tarrifs - MTN 104 114 114 114 81 81
Mobile contract usage tarrifs - 50 50 70 70
Rwandatel
Mobile prepaid usage tariffs - MTN 133 147 147 147 100 100
Mobile prepaid usage tariffs 55 55 80 80
-Rwandatel
Mobile phone handset cost 90,000 12,000 12,000
Internet The increase in
Fixed line internet usage tariffs - mobile phone 45,000 45,000
MTN services has
Fixed line internet usage tariffs - been 45,000 45,000
Rwandatel accompanied
Mobile phone internet usage tariffs - by decrease of 20,000 20,000
MTN
costs of
Mobile phone internet usage tariffs - 35,000 35,000
Rwandatel connections
Broadband Internet and handsets
Fixed line internet usage tariffs - RURA, 2009 190,000 190,000
MTN 16
ICT remains the most attractive area for
Foreign Direct Investment
Rwanda’s Investment by sub-sector, 2006

Source: RDB/RIEPA, 2007

17
To this end, ICT has a significant impact to Socio
Economic Performance to the country. This trend
has also a positive impact to the economic
growth
ICT Sector Contribution to GDP, 2005 ICT Expenditure, 2005-2012

Source: TMG, Inc., 2008 Source: MINECOFIN, 2009

Socio Economic Indicators 2003 2004 2005 2006
1. Total Investment 3,723,085,000 2,306,143,000 5,665,153,000 5,026,461,000
2. Investment revenue 15,663,469,000 20,056,201,000 18,812,518,000 33,144,313,000
3. Taxes 3,735,804,213 6,512,211,986 6,607,008,574 9,121,399,468
4. Direct job creation 128 131 145 152
5. Indirect job creation 1,450 2,600 3,560 5,820
6. Universal Access Fund   171,774,695 166,202,866 295,344,085

Source: Nsengiyumva Albert et al., Pro-Poor ICT Project Report – Rwanda: A Community-
driven Network , July, 2007
In the framework of Vision 2020, GoR is committed to use
ICT in most of its activities in order to facilitate the rapid
socio-economic development
Knowledge
Agricultural By 2020 Based
Based Economy
Economy NICI NICI NICI
NICI I
II III IV
1. Education
2. Human Resource Development
Kalisimbi
Kigali Project
Metropoli 3. Infrastructure, Equipment and Content
tan 4. Economic Development
Network
5. Social Development
EASSY
6. E-Government and E-Governance
Project
Rwanda 7. Private Sector Development
National
8. Rural and Community Access
Backbone
Project 9. Legal, Regulatory and Institutional provisions
and standards
Regional 10 . National Security Law and order
Communica National
tion Kigali E-Government
Data Center
Infrastruct ICT Park
ure Project
The EASSY Project to which Rwanda is
integrated will contribute significantly to
Rwanda’s integration to the world economy.

The
implementation of
this project will
allow Rwanda to
become in ICT hub
in the region

20
Although the NICI II is mostly on Infrastructure
phase, GoR recorded a good number of
achievements.
NICI 2010 Implementation progress

Source: RITA, Mid-term Evaluation of the NICI 2010 Implementation for

RITA, December, 2008
21
Through NICI program, most of activities are
now based on
E-Sector
E-Education
E-Health:
- An open-source Medical Records System
that tracks patient-level data - One Laptop per Child project:
100,000 computers distributed to
- TracPlus and TRACnet – Monthly different primary schools
monitoring of infectious diseases including
HIV/AIDS, TB, and Malaria - E-Schools in secondary school

- Telemedicine – Information and - Regional ICT Training and Research

communication technology (ICT) used to Center (RITC)
deliver health and healthcare services
- E-Learning
- Mobile e-Health- use of mobile technology
in improving health delivery in Rwanda - Distance Learning

- Health Management Information Systems - Rwanda Education and Research

(HMIS) – systems that integrate data Network
collection processing, reporting, and use of
the information for programmatic decision- - GIS, Rwanda Development
making. Gateway
Through NICI program, most of activities are
now based on
E- Sector (Cont’d)

E-Government E-Agriculture

- Fiber optic Installation,

connectivity of a good number of - Agricultural Management
schools, hospitals and other Information System (AMIS) is an
public institutions exchange platform for all
stakeholders of the agricultural and
livestock sector
- Public Access Channels (12
Tele centers- Desks are already
operational)
- E-soko project seeks to empower
- Kigali ICT Center farmers to enable them make more
informed market pricing decisions
and ultimately more successful
farming
- Smart National Cards, ID, E-
business
 Institutional arrangement

Ministry in Charge of
Science, Technology
and Research

The development of
ICT sector needs
RDB/RITA cooperation of these RURA
institutions.

Ministry of
Infrastructure
The implementation of the program requests a
particular attention of certain measures.

More Cooperation with Capacity building and

stakeholders including training: ICT Skills,
Public-private Training and
Partnerships in ICT Awareness
development
Development of Retention policy for
Network infrastructure trained staff with
technologies especially high skills in ICT
in rural area
Dissemination of
Basic infrastructure information and
needs a rapid research related to ICT Investment in terms
improvement as a in order to share of softwares
prerequisite to ICT experiences and to production and their
development avoid duplication and commercialisation
“It is expensive to build a road, but
not to build it is more expensive”
Italian Proverb
Thank you for your Attention