The East African Standard ran an article a few days ago called “Why Firms in Africa Should Adopt ICT”. The article refers to comments made by South Korean scholar Gihong Kim of Handong University. Professor Kim postulates that by embracing ICT services, African countries can duplicate the job creation traditionally brought about by industrialization (eg. Industrial Revolution) without experiencing the consequential displacement of workers or the rural-to-urban migration. He said, “When [ICT is] combined with entrepreneurship, African countries can increase their share of international trade rather quickly.”
It is interesting to think about the potential of ICT in development within the paradigm of industrialization or as an economic development strategy. This has several policy implications — first and foremost, an increased level of infrastructure development across the continent. Based on research I have done on the market potential for call centers in Kenya, ICT intensive industries will not be cost-effective until both electricity and internet access become more reliable and affordable. Granted, great strides in infrastructure development for ICT (particularly in cellular phone grids) have been made in the last couple of years — and the development/business potential is beginning to be realized.
Having worked for a Kenyan-based e-commerce firm (along with the development of my current business which is ICT intensive), I can personally attest to the great potential ICT has for development.
But at the same time, ICT is not a labor-intensive industry — so the question is, to what degree should governments pursue ICT as an economic development strategy?
Share your thoughts!
