The information and communication technologies (ICTs) present an opportunity for accelerating growth and development on the African continent. But unless African governments join hands to take advantage of these opportunities, the continent will continue to lag behind. This is according to the Malawian minister of ICTs Leckford Thotho.“ICTs have brought up many opportunities and challenges. We need a concerted effort to harness these opportunities and join hands to overcome the ensuing challenges”, said the minister.Thotho was speaking at a consultative meeting on “Financial regulatory models and reforms for sustainable socio-economic growth in the ICT sector”, held in the Malawian capital, Lilongwe. The meeting was held as a side-event to the 3rd joint African Union (AU)/UN Economic Commission for Africa (ECA) annual conference of African ministers for Finance and Economic Planning currently underway in Lilongwe under the theme, Promoting high level sustainable growth to reduce unemployment in Africa. The side-event was organised by ECA in collaboration with Nokia and the Government of Finland.

In her opening remarks, Aida Opoku-Mensah, Director, ICT Science &Technology Division, ECA, noted that Information and Knowledge Economies require new thinking to create new employment opportunities and new enterprises in African countries. She observed that major industries have expanded in Africa due to the growth of the ICT sector and the emerging Internet entrepreneurs.

“ICTs are an innovator for other industries. They are radicalising employment patterns. Consequently, industries such as retail and manufacturing now need workers who understand computers, robotics and supply chain management”, Opoku-Mensah said. However, she observed that unless the knowledge Economy is working synergistically, it cannot innovate and create employment.

Sizo Mhlanga, Chief, ICT Policy and Development, ECA equally underscored the effects of ICTs on businesses.

“Due to the growth of ICTs, fields such as health care and construction need more skilled labour than ever before. These advances in ICTs offer Africa an opportunity to participate in the global networked economy”, Mhlanga observed. But on the other hand, he said that lack of innovation and technology weakens the capacity for growth and employment creation. He reiterated that access to information and knowledge is a prerequisite to reducing poverty and achieving the Millennium Development Goals (MDGs).

“Consequently, African economies need to embrace ICTs as tools and platforms for socio-economic development.”

The future of countries in terms of growth depends on the ability of the private sector to create employment and wealth, with the Government’s role being to minimize impediments. Emphasis should therefore be laid on Public Private Partnership (PPP) models, with the private sector investments to assist not only as a financial resource, but also as an important mechanism for technology transfer and management experience.

“Governments should deploy a participatory approach in attracting financing through appropriate provisions for local investment in infrastructure and innovation projects, while bilateral and multilateral partnerships are important to maximize the impact of ICTs on development and poverty reduction”, Mhlanga added.

In his presentation, Jussi Hinkkanen, Vice President, Government Relations and Business Development, Nokia Middle East and Africa, said forward looking tax policies on technologies and services (tax exemptions – i.e. preferrential treatment of ICTs) provide biggest tax returns and enable strong socio-economic development in the medium to long term.

“Governmental ministries such as ICTs, Science and Technology and telecommunications regulators should be strengthened and adequately funded and positioned as change agents for ensuring continuous innovation in society and for fostering public sector efficiency”, Hinkkanen said.

An analysis of the role of ICTs in promoting growth and deliberations at the Lilongwe meeting will be carried in the May issue of the CIO East Africa magazine. Do not  miss your copy.