SENEGAL

THE ECONOMY OF THE NICT (New Information & Communication Technology) PACKAGE IN SENEGAL

I INTRODUCTION

The NICT (New Information & Communication Technology) concept on which the emergence of the global information society is based, results from the integration of high-performance communications networks into global networks to facilitate a transparent and fully interactive access, at all times, to applications and services both at the national and international levels. This reality no doubt revitalises the economy, and the Internet indisputably constitutes the basic driving force behind this revolution since it makes it possible to sell, manage, inform and share in a lot quicker and cheaper way. It also promotes the strengthening of capacities, competence and performance.

II THE NICT PACKAGE IN SENEGAL

Despite its meagre economic resources, Senegal has human resources of quality and has thus always placed all its hopes on services, particularly those for which it has comparative advantage because of its geographical position (port and airport) or climatic conditions (tourism) .

The ongoing globalisation process came hand in hand with the explosion of the services sector, particularly in the field of NICT, which enables Senegal to face up to development challenges such as the fight against unemployment, poverty, illiteracy, the populations' improved access to health care, improving the competitiveness of its economy by increasing the productivity of firms, improving government efficiency and developing exports and improving the Balance of Payments.

The non existence of an organ of regulation within a context of private monopoly is a very inhibiting factor of the NICT package

III - THE NATIONAL NICT PACKAGE MARKET

III - 1 - ACTORS' PERCEPTION OF NICT

At the level of the national NICT market, actors are generally well aware of the importance of NICT, its indispensable and essential character and the role they can play in the development, growth in efficiency, productivity or competitiveness of organisations

III - 2 - HOW NICT IS PERCEIVED BY THE DEMAND

At the level of the demand, a lot of emphasis is placed on the importance of NICT and the resulting growth in the organisations' efficiency. Firms have become increasingly aware of the phenomenon of globalisation of the economy and the need to seize business opportunities.

III-2-1 Demand in equipment (computers, audio-visual telecom. )

NICT in firms and organisations

Almost all the firms are equipped with computers (99%), in the services (51%), industrial (26%) and business (23%) sectors. This leads to the observation that Senegal is ahead of other countries of the sub-region in terms of number of computers per inhabitant.

Demand in computer equipment and products

The majority (2/3) of firms and organisations have plans to acquire 2043 micro-computers new computers within the next twelve months. These involve 275 entities (54% public companies; 24% private companies; 6% individual firms, the rest by others).

Demand related to computer applications

In 40% of cases, the market resorts to Senegalese expertise (40%) for the development of specific software, but a large number of them (34%) develop them internally. Foreign expertise in this area covers only 25%.

III-2-2 Demand in human resources

Half of the firms and organisations have trained their staff to use the Internet. This awareness results from the various sensitisation campaigns organised in Senegal, over the last four years. 75% of the firms and organisations questioned express the need to strengthen the capacities of their management staff.

III -3- NATIONAL NICT SUPPLY

(Computing, Telecom and Audio-visuals)
Firms and organisations in demand of these services represents 79% while suppliers amount to 21%.

• Maintenance is on the top of the list of NICT services offered in Senegal. Such an activity is provided both by some equipment suppliers and those dealing in software sales.
• Tele-services are still in their embryonic stage even though the country is among the pioneers of this activity in the continent.
• The sale of news should be envisaged with a lot of caution. Those that are sold are very specialised and have a high added value.
• Telephone through Internet (VOIP) started in Senegal with a few firms.

III-4 What NICT actors expect

The State can play a decisive role in the development of the NICT package. The NICT actors (both suppliers and demanders) expect the State to play a fundamental role in the promotion of the NICT package in its capacity as

1) Facilitator of NTIC access to the largest number through tax reduction, the development of infrastructures and the extension of services to most disadvantaged zones;
2) Back-up role, by taking initiatives in partnership with actors (technopole, sodida, joint state-private sector funds and/or guarantee funds) through pilot projects aimed at creating employment and/ added value.
3) International promoter by bringing in more Senegalese visibility in the NICT area;
4) Model user or champion in the use of NICT.
5) Arbitrator to guarantee healthy competition in the market economy.

IV - GROWTH PROSPECTS

79% of Senegalese firms have confidence in the national NICT equipment market, which they believe has promising growth prospects.

V - CONSTRAINTS IN THE NICT SECTOR

41% of firms , all sectors put together, mention constraints relating to telecommunication infrastructures. Firms operating in this sector would have preferred to be able to negotiate their specialised links with the international operator of their choice, thus reducing their dependence on SONATEL. And moreover the particularly high costs of specialised location rentals constitute a major constraint for firms.

Advantages of Senegal's NICT package:

• cost of labour is acceptable
• satisfactory level of competence and qualifications in the NICT profession
• Senegal has the best telecommunication infrastructures in Africa, the extension of the band width from 64 Kbps to 42 Mbps is a significant progress and the optic fibre cable is being installed throughout the country.
• There is a telecommunications code
• The legal framework for a regulating authority has been defined
• The EPF lays special emphasis on the funding of NICT
• There are good training schools and centres for staff training
• English is becoming an option for Senegal.

Shortcomings of the package

• firms say that the cost of specialised labour is high
• insufficient number of qualified staff due of brain drain
• the non existence of cable telecommunications networks restricts users choice and possibilities
• An NICT services normalisation system does not yet exist (no start up funding)
• Not enough training centres for new NICT professions (computer graphics, webmaster) and maintenance
• Insufficient institutional and national promotion which affects the perception of Senegal as a country with internet services

VI - SENEGAL'S POSITIONNING IN TERMS OF COMAPRATIVE ADVANTAGES

At the national level:
The attractions of the national market

The environment:
Government policy; Legal and regulatory; Financial, Education system; Telecommunication infrastructures; Business mindedness

Public Sector
E-government; Training civil servants in NICT

Private sector
Computerising all firms; developing Intranet and Internet computer networks; developing e-business

Co-operation organisations
Act as a catalyst by funding capacity strengthening (training) and facilitating the access of underprivileged groups to NICT (micro-enterprises, women, handicaps, young students, school children etc.)

The key factors of success in the national market :

High quality services; respected deadline; average competitiveness costs; high quality but insufficient human resources; acceptable material resources; low level of financial resources; acceptable quality of after-sale services.

Advantages of the Senegalese supply:

Competence; technical means; financial means; quality of services; range of services; after-sale services; deadline respected; cost of services; research and innovation

VII - CONFIRMATION OF NICT CHOICE AS PRIORITY PACKAGE

The impressive mobilisation of NICT actors confirms the fact that the NICT is among the national priorities. In fact, this package is among the economic growth bearing sectors with a strong potential for job creation, added value and foreign exchange for Senegal. Its transversal dimension as a support sector to other economic sectors as well as its capacity to contribute very substantially to taking up the education and health for all challenges only serve to strengthen it position.

VIII- THE NICT PACKAGE PLAN OF ACTION

Senegal's NICT vision

Within five years, Senegal will, through NICT, become an emerging country with a competitive and modern economy and resources that will be developed and optimised at the national, sub-regional and international levels. The NICT will bring about a more equitable income distribution and contribute significantly in improving the population's well-being at the economic, social, cultural health and education levels.

The strategic NICT development basis in Senegal

Basis 1: Development of teleservices on the national and international market

• By 2005, turn Senegal into a high user of teleservices and important and effective exporter of teleservices;
• By 2003, develop a public teleservice market;
• By 2002, encourage the private sector to take advantage of opportunities offered by teleservices;
• Export in the following areas: distance data capturing, teletranslation;
• By 2005, increase and diversify teleservices on the international market

Basis 2: the State, model user, facilitator and backer

• set up an appropriate institutional, legal, regulatory and fiscal framework
• generalise the use of NICT at State level as well as in the various arms of government, including local governments
• implement an NICT promotion policy

Axis 3 : an education and training system adapted to the development of NICT and the various needs of the sector

• Introduce computer science in schools and kindergartens
• Reform training to make it professionalising
• Popularise and initiate the populations (outside the education system) in NICT appropriation
• Use NICT as training aid - Develop research through NICT