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Africa: Continent Lags Behind in Access to E-Infrastructure
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Business Daily (Nairobi)
8 May 2008
Posted to the web 7 May 2008
Okuttah Mark
Most African countries are slow in channelling information technology towards economic and social benefits, the latest global e-readiness report shows.
The e-readiness rankings by the Economist Intelligence Unit allow governments to gauge the success of ICT strategies against those of other countries and provide corporates with an overview of the world's most promising investments locations.
In this report, North America was ranked the best garnering 8.72, followed by West Europe 8.16, Asia-pacific 6.34, Central and Eastern Europe 5.54, Latin and Eastern Europe 5.33. East Africa scored 5.14.
Factors guiding the rankings are connectivity, business, legal, social and cultural environment, government policy and consumer trends.
"The rankings illuminate the factors that are driving or inhibiting a country's progress from using ICT to advance economic and social developments," says Peter Korsten, global leader of IBM Institute for Business.
In terms of electronic preparedness, the United States is now the global e-world readiness leader with a score of 8.95 followed by Hong Kong. South Africa is the most prepared in Africa at number 39 out of the 70 ranked states. No East African country features in the list.
Economist Intelligence Unit considers mass access to infrastructure as the foundation of e-readiness.
Regional research firm, Research ICT Africa, attributes the low ranking of African countries to failure to deregulate telecoms markets enough so that competition can bring mobile services down.
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The organisation takes specific issues with fixed to mobile interconnection rates, which it claims, are 80-100 per cent higher than global trends. Markets with atronomical rates include Kenya, Benin and even South Africa. Mr Paul Kukubo, the chief executive, ICT Board of Kenya, said the country can borrow the best practices in legal matters from South Africa.
Mr Kukubo adds that data and property regulations are needed to protect local investors and attract foreign ones.
To be at par with the trends of competition, observers say that countries like Kenya need to tackle tax regime, start up financing, and labour costs.
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