China sets the pace in IT development

African countries are enjoying the benefits of rapid adoption of the latest communication technology

With the development of infrastructure and industrialization, the telecommunication industry is no longer a periphery industry in Africa. Services featuring broadband, multiplatform content and multimedia communication continue to be integrated into cloud computing and other technologies.

To implement a wide range of economic development strategies, many African countries have been looking at information and communication technology and its service sector in the hope of getting rid of a single economic development pattern that is heavily dependent on agricultural products and the export of resources.

African countries such as South Africa, Ghana, Kenya and Ethiopia started to develop their ICT industry plans as early as 2005 to improve their productivity.

ICT is gradually proving its vital importance in other economic areas. Thanks to ICT development, banking has become simpler and faster, healthcare procedures and government administration more efficient.

According to the International Telecommunication Union, the mobile phone is the main driving force in Africa's ICT industry. In 2000, only 11 million Africans had mobile phones; the figure reached 750 million in 2012. In addition, many Africans have started using the Internet, with the number of users soaring from only 3 million in 2000 to 140 million in 2012. In this market environment, mobile phone operators have become a major source of revenue for African countries, accounting for 7 percent of their total revenue.

According to GSM Alliance, in Tanzania, Senegal and Gabon, mobile operators are the government's main source of tax revenue. Currently, Africa is China's fourth-largest mobile phone export market. China's Lenovo group will also develop personal computer businesses in Nigeria and Egypt as a prelude to its African strategy.

Investment, from developed countries, China, India and African companies, in Africa's mobile communication industry jumped from $8.1 billion in 2005 to $90 billion in 2012. To achieve more growth in emerging overseas markets, Chinese companies Huawei and ZTE, Beijing Star Communication Network and Alcatel-Lucent Shanghai Bell entered the African market from 2004 to 2010. These enterprises not only develop Africa's ICT services, but also send local employees to their headquarters or colleges in China for further training.

Most African countries have opened up their mobile phone networks and Internet markets. They have also set up special departments to issue licenses and resolve disputes. Kenya has adopted an ambitious plan to transform itself into a center of African ICT. Kenyan authorities have recently reduced development costs, with mobile operators in return required to extend network coverage to rural areas. Rwanda, Egypt, Tunisia, South Africa and the Seychelles have also announced the development of ICT industries.

It is noteworthy that the rapid growth of ICT in African cities is improving communication and cooperation among developing countries.

Chinese companies can provide Africa with the world's leading mobile communication network equipment at reasonable cost.

In the first 30 years of its rapid economic development, China experienced IT upgrades that are now taking place in Africa. The Chinese are more willing than Western companies to develop different products and services to suit African conditions. The Chinese companies also share their experiences in constructing and operating global communication networks. Because of Chinese participation in the market, the price of mobile communication in Africa has been significantly reduced.

Huawei and ZTE have been focusing on upgrading Africa's ICT business services. These include Internet services, e-government systems, system integration, video surveillance and VPN applications.

In recent years, ICT has penetrated into all areas of social life. To gain more market share, the standard of service provided by Chinese enterprises has already reached European levels. Providing comprehensive solutions and affordable and efficient IT infrastructure services in Africa has become a Chinese specialty.

The most convincing example is a project for improving information technology for Ethiopian customs, which is being financed by private Chinese companies. Running for two years, the project has helped to increase the country's customs tariff revenues by 50 percent. The time taken for Customs inspections and formalities has been significantly reduced.

ZTE, Huawei and other Chinese companies have been involved in joint efforts with international financial institutions to extend mobile banking services in Africa. They also use mobile phone text messaging platforms to facilitate agricultural trade.

The author is a professor at Beijing Information Science and Technology University.

(China Daily Africa Weekly 12/06/2013 page9)