ICT Crucial as Key Economic Booster for Zimbabwe

Enhancing the information, communications and technology (ICT) sector will improve the chances of Zimbabwe, becoming a global economic powerhouse, as the sector can foster both economic growth and social development in the country. Evidently, the shift towards technology-driven solutions is on the increase in Zimbabwe as evidenced by the high uptake of information communication technology (ICT) systems across the divide.

In recent years, progress in information and communication technology (ICT) has caused many structural changes such as reorganizing of economics, globalization, and trade extension, which leads to capital flows and enhancing information availability. Moreover, ICT plays a significant role in the development of each economic sector, especially during liberalization process. Even growth economists predict that economic growth is driven by investments in ICT.

Day to day business operations, individual life and governance processes now take shape within the digital horizon. Indeed, the integration of digital technologies into everyday life is a disruptive reality that both urban and rural citizens have to grapple with.

From a business perspective ICTs have become a major driver of economic activity with businesses now investing more resources in modern technology development. This has generally opened a wider window of opportunity for investment in ICT infrastructure, software and manpower development.

The cross-cutting effect of ICTs has seen it take centre stage in top-level engagements locally and internationally. In the case of Zimbabwe, historically considered an agriculture and mining-based economy, ICTs have recently emerged as a key economic pillar with significant transformative impact on all production processes.

No longer mining and agriculture, “the true driver of Zimbabwe’s economy is the ICT sector,” says Engineer Jacob Mutisi, chairman of the Zimbabwe Information and Communication Technologies unit under the Zimbabwe Institute of Engineers (ZIE).

“This is where our Government should be injecting revenue for economic growth. Over the last decade Zimbabwe has experienced substantial growth in ICT.”

Records indicate the period between 2014 and 2015 saw major growth of up to 10 percent in the sector, far ahead of many other sectors of the Zimbabwean economy, which have largely remained stagnant in the face of a myriad of challenges.

“The ICT industry has remained remarkably resilient in the face of the macro-economic instability. At this time when our economy growth is slow and in continuous volatility, our Government should be looking for policies that will stimulate growth and create new jobs.

“ICT is not only one of the fastest growing industries directly creating thousands of jobs, but is also an important enabler of innovation and development. Zimbabwe has been ranked among the top five African countries with the fastest growth in telecommunication, infrastructure and mobile money innovations,” says Eng Mutisi.

The engine behind the rapid growth has been the mobile telecommunications industries, which have caused a mobile revolution in the country.

Econet Wireless, state-owned NetOne and TelOne, Telecel and Powertel, among others, have recently been investing millions of dollars in network upgrades and green projects.

Official statistics indicate active mobile penetration had reached more than 90 percent and Internet penetration had surpassed 45 percent as at December 31, 2016. As a result, connectivity in Zimbabwe, whether via Internet or mobile connections, is bringing market information, financial services, agricultural services, health services to remote areas and is also helping to change people’s lives in unprecedented ways.

Adoption of mobile money transfer in the face of cash shortages has become a biggest winner for Zimbabwe, while various broadband applications such as WhatsApp, Facebook, Twitter, YouTube and Skype have made communication and access to information easier and cheaper.

“New information and communications technologies (ICTs), in particular broadband high-speed Internet, are changing the way companies do business, thereby transforming public service delivery and democratising innovation,” explains Eng Mutisi.

His views are buttressed by World Bank economist Christine Zhen-Wei Qiang who once said: “The mobile platform is emerging as the single most powerful way to extend economic opportunities and key services to millions of people.”

The Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ), for instance, is piloting a telemedicine technology to be rolled out across the country.

Similarly, Econet Wireless is well ahead, having already launched its hypertension and sugar level testing device under its connected health initiative that seeks to enhance access to medical assistance using modern technologies.

The revolutionary innovation is expected to help reduce the doctor-to-patient ratio by improving health care for communities as doctors can remotely monitor patients across a wider radius through data alerts using the electronic platform.

Under the new dispensation led by President Emmerson Mnangagwa the country, under its “Zimbabwe is open for business” mantra, is primed for increased investment mainly in the ICT sector. The on-going investment reforms and the adoption of the Special Economic Zone (SEZ) model, which will streamline ICT development, are part of the bold structural transformation measures meant to yield positive results for the country.

In view of the growing opportunities in the sector, President Mnangagwa in March this year launched the National ICT Policy to guide Zimbabwe’s economic development through a coordinated use of ICTs.

“This policy will undoubtedly provide strategic direction and guidance for sustainable national economic development through systematic and coordinated application of ICTs,” said the President at the time.

“The ICT policy is thus aimed at transformation, growth, inclusiveness, sustainability, innovation and partnerships in the mainstream economy and puts in place institutional, legal and regulatory frameworks in order to achieve its intended goals. It is therefore envisaged that all sectors of the economy and society at large will harness the power of ICT’s for the development of our nation.”

Government, through Potraz has also approved a $25 million package meant to promote use of technology by youths and has since called on ICT innovators to submit proposals to obtain funding for viable business projects.

“Any ICT Innovators or start-ups that have brilliant innovations or solutions that have the potential to revolutionise its target market and/or drastically change the lives of Zimbabweans and the economy as a whole can apply,” says Potraz.

Last week Information Communication Technology and Cyber Security Minister, Supa Mandiwanzira, speaking in Gutu, said Government was working with speed to ensure that all corners of the country were connected to the Internet as ICTs have become a way of life and not a luxury.

“In a basic way, technology makes life easier. As a Ministry, we want to ensure everyone is connected. This is what President ED Mnangagwa is encouraging . . . let us prioritise use of ICTs first,” said Minister Mandiwanzira.

“Government wants to bring e-learning, e-health to every corner of the country and we have tasked companies in the sector to deal with that. It is no longer a luxury to have connectivity around the country.”

ICTs have also become key pillar in bridging the digital divide between rural and urban. As such, Eng Mutisi says the fact that virtually most mobile customers in the coming years will be in the rural areas, means that the ICT platform is reaching out to population with low levels of income and literacy.

“As a result, ICT is becoming the largest distribution platform of providing public and private services to millions of people in both urban and rural areas. Market information, financial services, education, agricultural services and health services had largely been unavailable in those areas in the past due to lack of connectivity of any kind,” he said.

Estimates indicate the ICT sector alone has in the last few years attracted over $400 million investment and more opportunities abound.

South Africa-based entrepreneur, Mr Justice Maphosa, is among the investors who have been enticed by huge opportunities in the country’s ICT sector.

For him Zimbabwe is a “virgin country” that is well positioned for major investments across the board. His company, Bigtime Strategic Group, has made an impact in the neigbouring country and recently unveiled plans to splash a large chunk of its investments in Zimbabwe, attracted by the positive investment climate under the new dispensation.

“For us in business, the ICT sector offers opportunity to use technology and streamline processes and make business easier,” said Mr Maphosa in a live interview with CNBC Africa.

In its preamble, the National ICT Policy acknowledges that rapid and robust infrastructural development and rejuvenation has enabled the development and availability of a plethora of e-services, which consumers have embraced as easier means to communicate and transact between person to person, person to business and business to business. In the realm of service delivery, Government and local authorities have made strides in the use of ICTs by introducing various e-services to the citizenry.

These technologies have also enhanced accountability and public contributions to policy and development debate. ICTs have further enhanced research for learners, farmers and policy makers. The establishment of community information centres in most districts through Potraz is likely to leapfrog development at local level. Given the challenges the country is going through, Eng Mutisi believes the ICT sector is strategically positioned to provide a lifeline for the economy.

“If supported and managed properly this is an area that will provide additional jobs and desired value addition to stimulate growth in our economy,” he says.

In a nutshell, at the present time, ICT has become a serious part of economy. Almost all firms and consumers use computers and Internet connection for economic purposes, such as providing consumers with a more diversified and customized products, improving product quality, and selling goods and services. Evidently, the extension of ICT and its influences on economic growth in both developed and developing countries has increased very fast during the last two decades.