ITU Telecom World

Opening the third and final Ministerial Roundtable at ITU Telecom World 2018 on the topic of Financing Digital Development, moderator and ITU Deputy Secretary-General Malcolm Johnson welcomed high-level representatives from public and private sectors to exchange views, good practices and ideas on funding connectivity and the digital transformation it enables.

Johnson reminded the panel that almost half of the world’s population remains unconnected, the vast majority of whom are in rural, remote and isolated communities where distance, terrain and market conditions make universal connectivity challenging. But given that some 80% of the world’s population is already covered by 2G or 3G services, “it is clearly not just a matter of connectivity.  It also means that we have to ensure that the services and equipment offered are affordable to people, that the content is relevant to them in the local language, and that they have the necessary digital literacy to take advantage of these services.”

Connecting the next billion world citizens comes at a high price – USD450bn is a conservative estimate, according to ITU Secretary-General Houlin Zhao. This level of funding cannot be left to governments alone, he noted: “We need to encourage more investment in the ICT infrastructure.  We need to mobilize the private sector and the public authorities, who are also responsible for creating a good environment to attract investment, because you cannot force people to do business.  You have to create a good environment to attract investment.”

Partnerships are critical at all levels: between government and industry, within government ministries, between different industry sectors and within the telecommunications industry itself. And cross-sector sharing of physical infrastructure, such as between the postal service and telecoms, is important to save costs and extend reach efficiently, noted Bishar Hussein, Director General of the Universal Postal Union, reminding the panel that ”Telecommunication is a critical infrastructure for the social and economic development of societies.  There is no doubt about that.”

Outlining a number of initiatives aimed at increasing connectivity, digital inclusion and the growth of the digital economy in South Africa, Siyabonga Cyprian Cwele, Minister of Telecommunications and Postal Services, focused on the central role of government in bringing infrastructure to the people.

“Our aim was to connect every government office in every locality, and then to create demand by providing these government services and infrastructure closer to poor people, because in every village there is a school, a police station, and other government offices and postal offices.”

Given the current fiscal climate and the limited revenue available within the Universal Service Fund, this has only proved possible within a public private partnership. “But the key thing is that we should have a sustainable and affordable financing model where we can liberate you on the private sector to expedite the delivery of this service, which will still meet demand.”

Echoing Johnson’s earlier comments, Minister Cwele stressed the need to focus on demand, including affordability, local language content and localization. “Content is going to be the biggest driver of demand for these services,” he said, emphasizing the growing trend to digitize oral history and local content throughout Africa.

There is, however, no one-size-fits-all model for government in stimulating digital development, either in terms of funding, partnerships or content creation. Every country has its own context, highlighted Ange Maxime Kazagui, Minister for Communications and Media within the Ministry of Posts and Telecommunications of the Central African Republic.

“We are here because we don’t want to miss out on this revolution.  It is imperative that we come up with financial resources, new models that are going to support the development of the digital revolution” he said, describing how his country is tackling the issue through a bilateral funding agreement with China and its international banks. “Every country is different and, therefore, you have to come up with models that are suitable to the situation on the ground,” he concluded.

Leon Just Ibombo, Minister of Posts, Telecommunications and the Digital Economy, Republic of Congo (Brazzaville) echoed the importance of attending this event: “When coming here, we thought we would come and learn from you so that we see how we can be enriched through this experience and in turn how we can enrich yours because this is a cross-cutting sector…and I think it is the only revolution that Africa has got absolutely no right to miss out on.”

He spoke of the need for a model using digital technology throughout the entire economy, diversifying to cover all sectors, but based on the three principal pillars of e government, e citizens and e business. This will depend on regional partnerships on backbone connectivity with neighbours such as Central African Republic, Cameroon and Gabon, as well as private sector partners, financial mobile banking and international financial institutions such as the Bank for African Development, in order to enable as many people as possible to be connected and benefit from digital transformation and the value it adds. Trust in the digital revolution is key, he added, focusing on the need for cybersecurity in e business in particular.

Hungarian State Secretary for Security Policy in the Ministry of Foreign Affairs and Trade Péter Sztáray outlined the central role of the ICT sector in the national economy, where ICT accounts for some 20% of Hungarian GDP and 22% -24% of the entire economy: ”The ICT sector is one of the strongest sectors in this growing economy, and my government is putting great emphasis on how we can build this kind of progress further, not only in the country, but also in the wider region, and with other geographic regions including Africa.”

The role of government is paramount, he said, in driving digital transformation and the partnerships supporting it: “There is no global access and global connectivity without the engagement of the government,” but “it has to work together with the private sector. It has to work together with NGOs and focus on the demand of the people, the consumers, the trends of development in the IT sector.” And at the same time, “the state has to be cautious not to overshadow the role of the other players.”

Government initiatives in Hungary include the Digital Success Programme to extend literacy, education, child support and cooperation between different sectors in the economy; the 5G Coalition aiming to position the country as one of the front-runners in introducing 5G; a super-fast internet programme; and the development of SME expertise, capability, funding and partnerships with larger companies. “The digital revolution is an extremely big opportunity to bring connectivity and access all over the world… and if we work on that together, we can close a lot of development gaps and have a better world.”

Re-emphasising the role of events such as ITU Telecom World 2018, Cooper W. Kruah, Minister of Posts and Telecommunications, spoke of the importance of participating, particularly following the immense difficulties in Liberia in the wake of civil war and the ebola epidemic: “This is why we’d like to participate in most of these meetings, international organizations now, so that we can also begin to put the pieces together.”

He agreed on the central role of government in encouraging investment, even it cannot directly provide funding: “There are many ways that the government can be a partner in the development of the digital world even without giving money directly to some of the institutions that are involved. Government should be able to develop programmes that will help the investors in the country to encourage them to invest more money”, such as sharing infrastructure with power utilities, and encouraging infrastructure sharing between private sector players to reduce costs and expand programmes.

Nepal’s Minister of Communications and Information Technology, Mahendra Man Gurung, highlighted the difficulties in providing easy access to the internet to all Nepalese citizens, difficulties which are familiar to many developing nations around the world: “There are challenges because of limited resources and difficult geographical terrain.  And there are different priorities which we have to focus on, such as health, infrastructure and digital connectivity. We have to prioritize our resources.”

Alternative financing models include differential tax incentives to encourage operators to invest in remote and rural areas, and licencing conditions stipulating a percentage spend on rural areas.  Increasing digital literacy to empower people, create jobs and boost the economy calls for government intervention at policy level, as well as partnerships with private sector telcos to provide funding and ensure inclusivity, in particular reaching women, start-ups and innovators:  “There is a need to have more policy level interventions from the government.”

Representing the African Union as Commissioner for Infrastructure and Energy, Amani Abou Zeid focused on “the ICT infrastructure gap. And the task is enormous in trying to bridge this gap and get the investment needed for the continent in this very important sector.” It is key to create an environment favourable to investment in terms of laws and strategies for dealing with local and foreign investment: “The rules of the game have to be very clear at the outset in order for any private investment to be attracted to our countries and operate in an effective way.“ Leading reforms to create a healthy investment environment will see “Africa more and more being positioned on the world stage as an attractive destination for investments.”

Her second priority is creating a market big enough for large-scale investment to make sense, in the form of an African Union free market area, as well as regional and sub-regional agreements: “We also know that profitability and the size of the market is important for investment.  By leading continental and regional initiatives, we are creating a huge space for the private sector and other international investments in general to come to our continent.” This harmonization of policies across the region will facilitate not only international investment, but also cross-country relations, policies and investments.

Once the market has been created, the pressing concern is creating demand – and here, e government is key to ensure inclusivity, addressing in particular women, girls and remote regions. The continental Business Network of global and continental private sector players can help to mobilize private investments

Government must also regulate the industry to drive inclusive digital access, Sihle Zikala, MEC for Economic Development, Tourism and Enrivonmental Affairs in the KwaZulu-Natal Provincial Government, South Africa, pointed out: “What causes the problem in terms of access to digitalization is firstly because of monopoly.  Very few companies are involved, and those companies are at a global level and, therefore, they move from one country to another.  This means of self-regulation…and thinking that the private sector will regulate itself without the voice of government is not going to help address the problem we are facing.”

“The problem we are facing is a lack of skills, and access, especially for poor people, to ICT. So we cannot pretend private sector can solve it on its own,” he continued, outlining projects in the KwaZulu province such as providing community facilities in townships with free wi-fi, computers in schools and tertiary institutions, training programmes and bursaries to reach students in rural areas.

The roundtable continued with highly relevant counterpoint voices from leading private sector players. Vodacom CEO Shameel Joosub started with the fundamentals: “In telco, the biggest thing that you need to do to be successful is to put the level of investment in.”

The market opportunities of making access and data available to everyone are enormous, he said, with ensuing benefits in areas such as financial inclusivity, social development and education.

“One of the biggest challenges we see globally is where do the next 1 billion customers come from?” he asked, looking at how to increase rural coverage and access. “The only way we are going to be successful is if there is a harmonious relationship between policymakers, regulators, the private sector and civil society. But how do we foster better partnerships to be able to do more?”

These partnerships could range from working with communities to protect base stations and ensure fuel supplies to open source software and technology to create lower-cost base stations, or partnering with new internet players, handset manufacturers, or new connectivity providers  to create a new value chain throughout the ecosystem and drive down costs.

It is also critical to reduce wastage, by governments being very specific about where the private sector should operate and better coordination in terms of where spending goes.

Of all new technological developments, he highlighted the power of 5G: “5G gives a real opportunity in Africa. We have large countries which makes it very difficult to deploy at scale. There will be a certain number of households covered by fibre, but we are going to need mobile technologies to be really able to do it.” 5G can emulate what fibre currently does, transform industries in conjunction with IoT, and reduce the costs of communication very quickly because of the ample bandwidth it makes available. 5G may well “have more meaning in Africa than in Europe, where fibre is deployed.”

“We share the same ambition and dream, which is to give access to new technologies and development on a quasi-universal basis, in particular to poorer populations and most remote areas,” affirmed Thomas Chalumeau, Chief Strategy & Development Officer, Orange MEA.

This can only be achieved by private and public sectors, international donors and financial markets working closely together in a number of fields, he said, calling for “better articulation between tax, regulatory and sectoral policies” such as stimuli for rural electrification such as pay as you go solar models.

The momentum provided by large-scale solutions in network and connectivity, including smart city programmes and e-government, is important, with “new areas of cooperation to be built between the private sector and the governments and institutions around e-government from public payments to common developments in agricultural and educational programmes.” We need to take more risks globally and reinforce our collective imagination, he argued, outlining initiatives such as the digitization of educational content, rural mobile financial services, energy and agriculture.

“For me, there are four main key players,” he concluded. “Everything starts with governments and regulators. Industrial institutions need to take more into consideration the needs of large private sector companies in digitization. And the financial markets will see tremendous growth in alternative financing solutions, to come and work with governments in Africa and to advance.

Jacques Bughin, Director and Senior Partner at MGI, McKinsey & Company, focused on the need to create new markets, redirecting funding currently spent on competing for existing customers: “It’s a question, then, of demand, and it’s a question of how we can prove the case in developed countries, of where the money will be come and be reimbursed from.”

Given the value arising from that investment, with AI technologies reliant on digital infrastructure likely to be responsible for up to 20% of global GDP in the future, the amounts involved are not that large, he argued. It is important to produce creative financial models based on innovative cross-sector partnerships: “We have to make sure that most of the industries start to cooperate in the ecosystem, whether it’s telecoms or energy, I think there are synergies as has been discussed, but…we need to think as well about retail, media, multiple industry stakeholders.”

James H. Poisant, Secretary General of the World Information Technology and Services Alliance (WITSA), encouraged government to understand the enormous pay-off to investing in ICT development. Identifying the key factors to success in creating a digital economy, he urged full, long-term government commitment, driven by dedicated individuals or champions: “It’s important to make the point on long-term plans, because otherwise, when there’s a changeover in government, the new government typically throws away investment made by its predecessor or does not realize it. “One country made a constitutional amendment to make sure that these long-term digital agendas are not touched when there is political change.”

One size may not fit all, but if digital plans are in place, money and the private sector will follow so long as the country is stable and there is long-term commitment and planning. It is also important to review digital agendas every year or so, updating to meet changes in technology and society.

Wrapping up the session, Malcolm Johnson highlighted the clear agreement on the need for partnerships throughout and across public, private and civic sectors, calling for “my three Cs – collaboration, cooperation and coordination.”

All countries are different and will require different models to fund digital development, but issues common to all include creating compelling content, including the digitization of oral content; the use of new technologies from 5G to IoT, and high-altitude platform satellites; infrastructure sharing, in particular in tandem with the energy sector; involving new internet players; and fiscal measures including tax incentives and regulation to create attractive investment conditions.

The single most important factor, as agreed on by both public and private sector representatives, is government engagement:”You can’t get anywhere if you haven’t got the political will at the highest level in the country. You need champions then to drive things forward –and you need a long-term plan to really achieve these objectives.”

Ghana Day was celebrated in style at the Ghana Pavilion with a happy crowd enjoying food and drink and the presentations from government, regulatory and industry representatives.  Initiatives supporting e-government and digital education were in the spotlight and it was clear that SME innovation was having an impact on Ghana’s dynamic ICT sector. ​

Ghana Day was celebrated in style at the Ghana Pavilion with a happy crowd enjoying food and drink and the presentations from government, regulatory and industry representatives.  Initiatives supporting e-government and digital education were in the spotlight and it was clear that SME innovation was having an impact on Ghana’s dynamic ICT sector. ​

A very diverse panel, spanning Government, major tech players, SMMEs, agencies and chambers of commerce debated key stumbling blocks and evolving opportunities for tech SMMEs in South Africa, moderated by SITA’s Sithembele Senti.

In her opening keynote to a packed room, H. E. Stella Tembisa Ndabeni Abrahams, Vice Minister, Ministry of Telecommunications and Postal Services, South Africa explained how we must realise the crucial role of SMMEs, in the ICT ecosystem, and “what it is that we can do, as governments to make sure  this industry becomes a booming industry.” Outlining some of the key challenges entrepreneurs face; funding and access to markets and opportunities, she explained that the Government knows they face challenge, and has made sure to pass an SMME strategy to meet these challenges. When SMMEs try, big business tries, too. Crucially, innovations must meet the needs of African markets. SMMEs don’t lack capacity, she explained, just resources, and big industry needs to be able to support SMMEs. In skills terms it’s a question of having the right skills, and understanding of what skills are needed- not just those who build tenders, she explained “We are building technopreneurs, not tenderpreneurs.”

Setting the context for discussions, Senti outlined how the public sector ICT environment is structured into two “worlds,” spanning past, present and future. The first is the legacy of current corporations and legal structures, supported by a competent pool of the original equipment, with software manufacturers who are largely multinational/foreign. SMMEs need to be able to gain access into this world. Specific contracts- those under 30m rand- need to be designated for SMMEs, with a share of the above 30m contracts also subcontracted to SMMEs. The second world will be the one that will “take us to the 4^thindustrial revolution or digital economy, the world envisioned through Vision 2020.” This will function as a platform where all citizens will be able to participate. An open innovation world. In this world, he noted, there is no tender- a major pain point for SMMEs highlighted at the session and echoed by the audience- it is a level playing field.

Panelists shared insights on areas from skills training, to navigating the world of tender, and encouraging SMME involvement in the digital economy.

For Muzi Makhaye, Chairman, ICT SMME Chamber, accessing the market and changing mindsets are key concerns. Today SMMEs may well have the innovations “but they are not trading them because the market is reserved for certain people.” Navigating through challenging tender processes can also prove difficult, as so many conditions must be met, that many SMMEs find themselves effectively shut out “We need to collapse this tender system” he explained. Here the private sector, big business “is duty bound to support SMMEs, to let them flourish and then procure their services.” We must collapse this silo mentality, he explained.

For Barlow Manilal, CEO, Technology Innovation Agency, there is no doubt about the potential of SMMEs but there are a number of key areas where they need support. Crucial to helping them is creating the right enabling environment- a view echoed by Cisco’s Houvet-, starting in terms of the legislative environment. More liberal policies are needed, as well as understanding the “dna of SMMEs” “Let’s not encumber them, let’s let them be agile,” he said. South African SMMEs tend to still be tentative in putting themselves forward, but they don’t need to be “You don’t need to play second fiddle to anyone in the world.” he told them. Mindsets also need to be adjusted to embrace the concept of failure- at present we still have the mindset that failure is fatal but it isn’t, it’s part of the development process. Funding is also a key concern, and we need to be patient and give SMMEs time to grow. The approach to funding should be “high risk, low return, patient capital”

Being able to rate and categorize SMMEs is vital, and a comprehensive list/database of SMMEs would be a valuable tool, according to Charmaine Houlet, Public Policy Director, Africa, Cisco – a sentiment echoed by Vice Minister Abrahams, as often crucial information on SMMEs is missing or unavailable. As well as knowing what SMEs are operating, it would also help in terms of sharing info with SMEs- those registered are able to get access to crucial info on areas such as routing, tenders or switching  but there are still many who don’t make it into the mainstream and therefore don’t get rated or get to access opportunities. ”We need to look at how do we define and categorise SMMEs and start addressing gaps,” she explained- but we are getting there, she added.

Business must stop paying sentiment and truly believe in SMMEs, explained Seacom Chief Development Officer, Suveer Ramdhani. Echoing a key topic raised by others he noted the importance if education “we need to fix education,” – as so many leave school unprepared. Creativity and innovation must be fostered in education.

Education and training are also key to Lindiwe Mokone, Vice President- Marketing, Screamer Electronic Services, sharing perspective as an SMME- particularly so that equipment repairs can be done in South Africa. As she explained, their contracts with OEMS do not allow them to repair equipment from major equipment manufacturers, this is shipped out. We have the capabilities to train, she explained, so it doesn’t need to be shipped out.

For Microsoft Account Team Lead, Ayanda Ngcebetsha, a key issue is taking successful case studies and take them to the mainstream? To do so, Microsoft has a huge IP core cell programme, to help and support those with IP solutions. Echoing other panelists on the subject of skills in a digital economy he explained that industry 4.0 requires “a new generation of skills.”

For Clive Charlton, Solutions Architect, Amazon Web Services, skill shaping and access to market are core issues for Amazon. It’s not just the initial support that’s vital for SMMEs, he explained, but nurturing them through a 3-5 year process. Access to a market place is critical, and they offer a market place for SMMEs offering SaaS, as well as awareness building through Amazon’s media and social media, providing exposure to startups to potential customers. “We see ourselves as an enabler for SMMEs” he explained.

Questions from the audience on navigating tenders, brain drain, opportunities in the Eastern Cape wrapped up a lively debate session.

The main challenges facing start-ups, the importance of global Awards programmes, such as the ITU Telecom World Awards, and the role of governments were among the key areas discussed by a diverse panel, spanning the full SME ecosystem, ably moderated by ITU’s Jose Maria Diaz-Batanero.

Panelists highlighted what they saw as the main stumbling blocks facing start-ups as they grow. For Deanne Friis Smith, Director Entrepreneur Search & Growth, Endeavor South Africa, it boils down to 3 key areas; access to capital, to markets “especially if they are scaling outside their own geography.”

Access to talent is also a key concern, according to Kerry Petrie, General Manager, Silicon Cape.  Gary Stewart, Director of Telefónica Open Future and Wayra UK also explained how management talent is also important. The “Founders dilemma” illustrates this issue, someone who does well as an entrepreneur – possibly innately a disruptor- may not necessarily be the best manager once the company scales up. De Wet Swanepoel, Founder and CEO, Listen Longer explained how although some people maybe great in the start-up phase, they may not be the best to take it to the next level. His company had recently brought in a director of business for this purpose, he explained

Friis Smith agreed. At each stage SMEs almost need to asses if they have the skills capability to take their company to the next stage, she explained. “Hire above what you can afford to pay,” she cautioned delegates “Hire for a global team, not for where you are today.”

The panel also highlighted the issue of having the right network to provide support, as according to Friis Smith “We need to get better at providing the support structure so people aren’t so isolated”. For Petrie, it’s also about “identifying potential mentors who are relatable to you, and leveraging their networks and experience.”

The panel – who included Huajing Jiang, CEO, Shanghai TERJIN Information Technology Co, winner of last year’s prestigious ITU Telecom World Awards, considered the role of Awards programmes. For Jiang, although the application and pitch took a lot of work, he considered himself very lucky to win, he explained. Winning the Award, and having international recognition it provided have shown a good image of his company to an international market and helped win a bid from China’s Ministry of Public Security “It helped us stand (out) in the market” he explained. Friis Smith’s Endeavor South Africa also runs Awards, offering chance to join an exclusive, prestigious network. Nevertheless, there are a lot of Awards programmes, said Petrie, and SMEs need to be and make sure they gain the right amount of exposure. “Know what you want from the Award,” advised Friis Smith. Providing a contrasting perspective from the Silicon Valley side, Stewart explained that “What’s important for us is what’s happening in your business.” Sometimes he sees start-ups with a load of Awards- while they can certainly help exposure, “At the end of the day, the only thing that matters is your metrics.”

Working with major players such as international organisations, corporates and governments may sound like a dream scenario for an SME, however, due to speed and bureaucracy in obtaining work “To rely on them solely would be a folly” said Sabelo Sibanda of Tuseapp. According to Stewart, lots of start-ups don’t know how to pitch to corporates, they need to make sure they do their homework properly before pitching. “If you are a corporate and a middle manager, you need to understand exactly how an SME can help meet your KPIs” – something SMEs need to bear in mind when pitching.

Governments need to support SMEs, although this is done with varying degrees of success. Stewart praised the UK government’s approach- which he had recently had occasion to observe- in that they give start up tax breaks, allowing companies to invest in start-ups instead of paying as tax. Whilst the UK government approach is to “stay out of the way” of start-ups, they do also use their convoking powers at the same time to help them. Governments don’t always need to write the cheque he explained, they can support SMEs by, say, using their convening power on the SMEs behalf. The Chinese Government also encourage start-ups and SMEs through tax reform, explained Jiang.

Governments must take care not to sell entrepreneurship as a silver bullet, cautioned Petrie, when a government proclaims that its SMEs will turn the country around, and then they must go and make it happen. For her this is an incredibly risky endeavor “To sell entrepreneurship without putting in place a more diverse group of stakeholders to engage around it is risky.”

Summing up, Diaz-Batanero asked the panel to share their top message for SMEs.

Keep alive as long as possible, said Jiang, and be sure to watch your cash flow. For Friis Smith its key to focus on what’s your core business, be bold and audacious, flexible and adaptable.

There are similarities across ecosystems, explained Stewart, even in different countries. We are all trying to get entrepreneurship right and keep hope alive. Everyone agrees that entrepreneurship is the only way to grow the economy, so all stakeholders should come together to help achieve this. Grow your social capital if you are an entrepreneur, and if you are a government or corporate you must provide this, said Petrie.

SMEs need to focus, said Swanepoel, to build themselves a great team. Surround yourself with those that are better thank yourself, he suggested, and make sure you are partner-centric.

Sibanda wrapped up with an interesting point to ponder. A turning point for him was when he realized he shouldn’t fall in love with the product but with the customers, for it’s the customers that are key.

Innovation is the key enabler for accelerating digital transformation and realising the fourth digital revolution, with all the tremendous benefits it promises countries around the world. But what is the fourth digital revolution, is it relevant for now or the future – and is it real or imaginary?

Moderator Dr. Eun-ju Kim, Chief, Innovation and Partnership Department, ITU, posed a provocative question to the panel of industry and government experts exploring the key dynamics behind building a digital innovation ecosystem to support digital transformation and bridging the innovation divide.

Abdoulkarim Soumaila, Secretary-General of the African Telecommunications Union, emphasized the fundamentals: “We cannot do AI if we do not have access to the internet. We can’t do IoT if we don’t have internet. We are now speaking about 5G, and we can’t do any of the applications if we don’t have any way of accessing the internet.”

“Industry 4.0 is not a destination, it is a journey,” said Bocar A. Ba, CEO, Samena Telecommunications Council. It is simply the intelligent networking of machines and processes supported by information technology – but without ubiquitous broadband connectivity, no applications, communications or smart technologies will be of any use. Investing in digital infrastructure is therefore an absolute priority, and will only be achieved through public and private sector collaboration, cooperation and partnerships.

For Lauri Oksanen, VP Research and Technology, Nokia Corporation, it comes down to three main technological disruptions happening simultaneously: connectivity improvement as we move towards 5G, cloud computing with storage and processing ability, and then augmented intelligence to make decisions based on all the day. Earlier industrial revolutions led to very concrete benefits in terms of productivity, growth, wealth and wellbeing for nations and their citizens. Can fourth industrial revolution do this too?  Yes, but only if the digital infrastructure is in place, and at scale. “The opportunity of digitization is to make all industry sectors more efficient, but it has to be diffuse. It’s not enough to have one factory or port or harbour digitized, we have to cover large areas to have the networking effect and the productivity improvement, “ he said. After all, Industry 4.0 is not about digital per se, but about bringing the benefits of digital to other, physical industries to increase economic and social growth.

The key to deploying that digital infrastructure is working across boundaries, sectors and industries, and building multi-stakeholder partnerships, agreed the panellists. And for Williams, it has little value within the development context and Africa if it does not bring benefits to the community. If people don’t understand how digitalization can meaningfully transform their lives, “It becomes innovation for innovation’s sake.”

But with connectivity, the cloud, and relevant solutions, there is a fundamental opportunity to transform government in terms of efficiency and effectiveness, moving to evidence-based data to improve policy decisions from municipal to provincial and national levels.

Speaking of the need to develop innovative ecosystems in both advanced and emerging markets, Dr. Martin Koyabe, Manager and Head of Technical Support and Consultancy, Commonwealth Telecommunications Organisation, stressed the need for political will to ensure enabling structures, supportive policies and regulation. He reiterated the importance of addressing real, local needs when targeting investment and innovation focus.

Industrialization is key for Africa, said Dr. Olga Memedovic, Deputy Director, Trade Investment and Innovation Department at the United Nations Industrial Development Organization. But just how that should happen in the digital era is uncertain, given that transposing ideas and initiatives from advanced markets and nations is challenging in the African context.  Understanding the extent of the Industry 4.0 paradigm shift is vital: it will industrialize and network all vertical sectors and services, impacting also on science, technology and innovation systems. Digital infrastructure will need digital skills, new business environments and innovation hubs focused on productive activities. We need to be aware, she said of “blurring boundaries between the sectors and being prepared to create knowledge-sharing platforms for different stakeholders.”

Partnerships with academia are also important, building new curricula to support digital skills and educate the next generation of data scientists and solutions architects.

Gwenael Prié, Digital Task Team Leader, Agence Française De Développement, noted how low funding is for African start-ups compared to other continents, outlining how his organization is tackling this shortage through a combination of direct financing, investing in funds dedicated to financing innovative start-ups on the African continent, and financing sustainable innovation development including incubators for policy, expertise and seed funding. “Information needs to circulate between the ecosystem to provide and facilitate openness,” he said.

We must have the right regulation and ecosystem, according to Director of Partnerships at theGlobal Manufacturing & Industrialisation Summit, ElodieRobin Guillerm, as Industry 4.0 will impact the future of children, how and what they study, where they work and live. The technologies may be applied principally in the manufacturing sector, but the impact will be felt throughout all aspects of our lives. “The engagement of the population is essential, so that when we are talking about innovation, people are not afraid of what the future will be like.”

Finding a balance between regulation and disruptive innovation is not easy – but there must be a sweet spot somewhere between, said  Lance Williams, Provincial and Local Consulti, SITA allowing for both the agility of innovation and sufficient governance to avoid chaos in critical applications.  Soumaila was not convinced: “Give latitude to anyone to innovate and create… and then regulate afterwards” to avoid blocking the benefits of innovation.

“Innovation is like cholesterol,” said Ba, “There is always the good one and the bad one”. Innovation should apply not just to technology, but to regulation, funding mechanisms, business models and redefined roles of stakeholders through the entire value chain.

Industry 4.0 is not imaginary – but the road towards it will be long and at times painful. If we can improve the lives of citizens, it will be worth the pain.

Connecting Africa means connecting locally, and it means connecting in rural and remote regions. But even with an array of technologies new and old – including fixed, wireless, and satellite networks such as high throughput (HTS), non-GSO and High Altitude Platform Satellites (HAPS) –it won’t happen without a new approach to partnerships across sectors, ministries and industries -and political will.

“Technology will not happen in a vacuum. The reality is that we need significant political will to make technology work”, said Akinwale Goodluck, Head of Sub-Saharan Africa, GSMA. “The things that are required for a better future, for connecting everyone, will not happen without the right policies and regulatory mechanisms.”

Existing preconceptions on the challenges of connectivity in Africa need to be re-examined, starting with the fact that in some areas coverage is as high 90%, but adoption only 10%.  “We find ourselves as an industry now building a lot of infrastructure in remote places, but the reality is that we are not seeing concomitant adoption. The coverage is there, but people refuse or are unable to connect due to issues of affordability, content, digital literacy and consumer awareness,” said Goodluck.

To make new technologies work for us we need to rethink efficient deployment of Universal Service Funds, which have until now focused in the Sub-Saharan region on addressing the capex issues. But as Goodluck pointed out, “The reality today dictates that capex is no longer the biggest hindrance to bringing connectivity to remote areas: it is instead opex, providing power and the daily running of the base station.”

Governments, OEMs and operators must work together more effectivity to address this barrier – as well as those of affordability and relevant content. And there’s a pressing need for a change in attitude on spectrum allocation in the Sub-Saharan region, rather than creating an artificial scarcity in order to drive up prices.

There is a further misalignment between population and coverage, where operators are not always deploying to the most populated rural areas due to legacy information and political considerations. Changing attitudes to rural and remote solutions – and using new technologies – can bring real success:  “Let’s change the narrative on rural telephony not being profitable and there being no future in rural access and rural services.”

For Tony Azzarelli, VP Global Licensing and Spectrum Affairs, OneWeb, that starts with understanding exactly where and what services are required, particularly in a continent as geographically diverse as Africa. Different stakeholders have different requirements, from governments looking to communicate with citizens and push out services to rural and remote areas, to businesses need to reach rural areas, to trade and exchange information and citizens wanting access to information, data and communications. “Once you understand the needs, then you realise that one type of tech to bridge the digital divide is not enough – you have to marry different technologies, fibre, wireless, satellites, HAPS, and work together to connect the unconnected.”

Government and industry also need to work together to enable newer technologies to be deployed in rural and remote areas, addressing in particular government investments, subsidies and harmonized regulations. “Satellite suffers a lot from barriers to entry, high cost fees and other legal requirements that often slow down the adoption of these new technologies. Many regulations are obsolete and opaque, irrelevant to new technologies,” said Azzarelli, giving the example of countries such as South Africa or Australia where the thousands and thousands of satellite terminals needed to provide low cost connectivity would require either a blanket licence or even an exemption from licencing altogether.

Satellite solutions can provide low cost connectivity in rural areas, whether high throughput for point to point connectivity, broadcasting and streaming, or the high capacity and low latency required for backhaul LTE and 5G solutions. And as 5G has been designed for cities and urban areas, it won’t be possible to implement rural and remote regions without satellite connectivity.

Mark Rotter, Treasurer, Dynamic Spectrum Alliance (DSA), reminded the panel that there will always be places which are hard to reach and understand, and the reality of connecting on the ground is tough. Sustainable business models ensuring affordable connectivity with low ARPU solutions are critical, as USFs cannot contribute endlessly: “It’s important to work out the maths in terms of capex, opex and overheads.”

Veni Shone, President, LTE Product Line, Huawei, proposed bringing costs down by choosing a major technology, deploying widely and benefiting from economies of scale. As power is such a fundamental issue in Africa, Huawei are using AI to reduce power consumption and maximise the opex structure together with ecosystem partners for each component, targeting a reduction of 20% in power consumption per year. Innovative partnerships should embrace infrastructure sharing, open access, community networks and new verticals such as energy, education or healthcare.

Preventing spectrum shortage is key to enabling new technologies and expanding connectivity. There are, according to Rotter, options in a number of bands and TV white space allowing us to think about spectrum smartly and to share it dynamically. The DSA is working on local community ideas with wireless access providers associations. Goodluck called for policy makers and regulators to facilitate access to spectrum, encouraging people to share and trade spectrum on industry-friendly terms and conditions.

“It’s not just connectivity for infotainment, we need to move also to production,” Huawei’s Shone reminded the panel. More spectrum is essential to devising business models for production tools in Africa. Azzarelli agreed that spectrum sharing should be the main objective of any regulator, reducing the price for poor communities should move away from the spectrum auction model which can inflate prices.

New approaches to spectrum sharing, regulating and auctions are vital, but depend upon on thing: politicians need to understand the relationship been spectrum and connectivity.   And it is not just ICT ministers, but finance ministers who need to be made aware, to avoid inhibitive prices impacting affordability of services in the country.