Enormous Potential for Nigerian Software Industry

Nigeria has an unfortunate global reputation as the home of 419 scams. A typical 419 scam involves sending emails to people around the world in order to extort money from them. Online scams may show an unexpected technical sophistication for a country associated with poverty, but are a sign that some of Nigeria’s plentiful talents are being turned to illegal activities rather than building legitimate businesses.

Many argue that Nigeria is missing its potential to become an African legal software powerhouse. The Institute of Software Practitioners of Nigeria said the country’s annual consumption of software reached US $900 million in 2006, making it possibly Africa’s biggest market.

“Nigeria stands a good chance of dominating both the local and West African diaspora in a thriving global software market,” it argues.

Production of computer software is a major income earner for countries like the United States and India.

Many argue that Nigeria has enormous potential, if it can address some common problems: an absence of software quality assurance, poor investment in software development, poor product standards and a lack of proper documentation. In short: if Nigeria’s software industry takes on board global best practice, then it is sitting on a goldmine of legitimate business opportunities.

Chris Uwaje, president of the Institute of Software Practitioners of Nigeria (ISPON), told Business Day that the country’s software technology, if well retooled and strategically positioned for global competitiveness, could earn about US $10 billion annually from foreign software exchange.

He argued that developing the software industry would have many benefits for the population as a whole.

“Software has … become and will remain one of the fastest growing industries with power to enrich, and sustain national economies,” Uwaje said.

Some estimates put the world software industry and associated markets at US $1,300 billion, with 90 percent of the world’s software exports coming from the United States and Europe. Outside the U.S., U.K., Germany and Japan, the new and emerging countries within the software industry are India and China, and to a lesser extent Singapore and Malaysia.

According to market researcher DataMonitor, the worldwide software industry grew by 6.5 percent between 2007 and 2008.

DataMonitor forecasts that in 2013, the global software market alone will have a value of US $ 457 billion, an increase of 50.5 percent since 2008 (Datamonitor’s Software: Global Industry Guide).

Africa has a high proportion of entrepreneurs because people have next to no social supports to fall back on and need to do business to survive. Nigeria’s large youth population – 43.2 percent of the total – could be the driver of this new economy if used right.

Nigeria mostly imports software solutions despite having an extensive capacity in software development. If developed well, software could surpass oil as a revenue generator for the country.

According to A Profile of Nigeria’s Software Industry by H. Abimbola Soriyan and Richard Heeks, “A typical software company (in Nigeria) had between 11 and 50 customers (the average was 36 though a few firms involved with package installation had several thousand). There was a strong concentration among these customers. Almost all were private sector … There was a surprising lack of government/public sector organizations as customers (reflected above in the limited number of firms found in Abuja).”

Jimson Olufuye, president of the Information Technology Association of Nigeria (ITAN), believes that more needs to be done to support the software developers. And while on paper there is strong support for this sector in information technology policy, “In addition, we need to establish more IT parks with appropriate policies on infrastructure, human resources, incentives and business plan.”

Wahab Sarumi, chief executive officer of Wadof Software Consulting, explains the problem: “Indigenous software developers are an endangered species, abandoned by the government, neglected by its own people and bullied by the poachers from India, to whom Nigerian businesses rush to buy software applications to solve local business problems.”

Already, Nigerian software firms are offering existing off-the-shelf software that they custom package with local services. This recognizes software made in advanced countries isn’t entirely right for developing countries: and this is where business opportunities await for software developers.

But the key to success, at the end of the day, is to be the best solution on offer for the right price. James Agada, managing director of ExpertEdge Limited, believes people buy the best software for the task and don’t care where it comes from.

“If you want to sell software, the buyer does not buy the software alone, he buys the software, buys capacity to support the software, buys your capacity to improve on the software, he buys what he assumes is your mastery of the domain the software … the software must be able to compete favourably with its competitors.”

By David South, Development Challenges, South-South Solutions

Published: February 2010

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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Ending Gang Violence While Cleaning the Streets in Haiti

 

The Caribbean nation of Haiti is the poorest country in the western hemisphere, with 80 percent of the population living below the poverty line (CIA World Factbook). The country had been enjoying some positive economic growth since 2005 after decades of economic and political turmoil.

The country’s political vacuum and economic problems gave rise to violent gang rule on its streets and a collapse in public services, in particular garbage collection. The piles of waste became a source of disease and squalor as well as providing barricades for gangs to wage their street battles.

Haiti was also hit by four devastating hurricanes in 2008, with heavy damage to the country’s agricultural sector and transport infrastructure.

But a project by UNDP’s Special Unit for South-South Cooperation (http://ssc.undp.org/Home.118.0.html) has turned around a Haitian neighbourhood by simultaneously cleaning up the garbage, creating employment and income and reducing gang violence and despair. The United Nations has been working in Haiti to restore the economy and bring peace and good government to the country since the 1990s. Its most recent mission, MINUSTAH (http://minustah.org/), has been running since 2004.

Called ‘Love n’ Haiti’ and located in the Carrefour-Feuilles district (http://www.maplandia.com/haiti/ouest/carrefour-feuilles/) of the capital Port-au-Prince, the project used a ground-up strategy to tackle the problem of waste removal.

“I know we have a bad image. But the violence is going down in my neighbourhood,” said Gislène La Salle, a widow and a mother of six from Carrefour-Feuilles, to the Indo-Asian News Service (IANS).

“But when the security situation deteriorated sharply, I could not work in the streets. Luckily, six months ago, I found work in this project. Now, life is more stable. I have a regular income,” she said.

“The money I earn allows me to feed my family better and send three of my six children to school.”

The neighbourhood has a population of 150,000. Nine community leaders were identified and a management committee set up called the Committee d’Action Sanitaire de Carrefour Feuilles (CASCAF). The management committee then undertook difficult negotiations with local street vendors to establish garbage collection points. A waste collection plan was drawn up, and around 400 workers were hired to clean the streets and canals and collect the waste.

The workers were divided up into nine street cleaning teams and three waste collection teams, comprising people who were members of rival groups.

The project started in 2006 from a very basic point: generating awareness in the population about the dangers of waste and the need for it to be disposed of. The breakdown in public services from decades of political turmoil and poverty had meant a culture of waste disposal no longer existed. The project drew on similar experiences in Brazil and used Brazilian expertise.

A triage (http://en.wikipedia.org/wiki/Business_Triage) centre was set up to sort the waste into paper, plastic, metal, glass and organic matter for recycling. Two products are made from the waste to earn income: cooking briquettes and fertilizer.

The cooking briquettes may also help stem Haiti’s horrific deforestation. The country shares its island with the Dominican Republic in the Caribbean, and anyone flying over the island can see a sharp dividing line between the green and lush forests of the Dominican Republic and the almost-barren and dusty Haitian hills.

By turning the trash into cooking briquettes, people are being offered an alternative to chopping down the forests and burning trees to make charcoal fuel for cooking.

Income for the waste collectors has increased to US $3 a day and the project has removed 70 percent of the neighbourhood’s waste, making it easier to get around and get things done (another boost to incomes).

Georginette is also a widow. Like Gislène, this mother of seven is thrilled to find a regular job. “Earlier, only three of my seven children went to school. Many children from the neighbourhood roamed the streets. But since November 2007 when I began working here, I can afford to send five,” she said.

Prior to the project, the neighbourhood was one of the most dangerous in Port-au-Prince. The project unexpectedly found the history of violence and conflict were quickly overcome when the project began to make quick progress.

Collecting the waste now earns an income for 380 families. And by gravitating community leadership to nonviolent leaders, relationships between people and groups improved.

The 50 waste collection points and public garbage bins now contribute to a reduction in common diseases that are rife in other parts of Haiti: leptospirosis, worms, canicola fever, tetanus, yellow fever, typhoid, dengue, and malaria.

Originally, the government of Haiti appealed to the India, Brazil and South Africa Facility for Poverty and Hunger Alleviation (IBSA Trust Fund) (http://www.indianembassy.org/newsite/press_release/2007/Sept/17.asp) to get to grips with the woeful garbage collection in the capital, while tackling the violence in the slums and lack of economic opportunity.

The project is also a partnership between Port-au-Prince’s city hall, the Ministry of Public Works and other government ministries, Quisqueya University, UNDP Haiti, IBSA, and the Special Unit for South-South Cooperation. The project is run on the ground by UNDP Haiti.

Where once the trash made flooding worse by blocking canals, having it removed has prevented the stew of waste that was produced when floods occurred.

“Impressed by the positive results so far, the Haitian government would like to replicate this model in other regions of the country,” said Eliana Nicolini, the UNDP project coordinator.

It is hoped the project can be scaled up to reach across Haiti and even be replicated in other countries. The UN Special Envoy for Haiti, former US President Bill Clinton, has been drafted in to help with raising funds for expanding the project.

The Love n’ Haiti project has been selected by the BBC’s World Challenge contest, which invites the general public to vote for which project they think is the best. Voting takes place on their website:http://www.theworldchallenge.co.uk. The project is number eight in the list on the website.

“It is not easy to choose who to hire in a place where so many are desperately in need of work. Many people beg us for work but we don’t have vacancies at the moment. If we can hire even 100 more persons, it would solve a lot of problems,” said Patrick Massenat, a local youth heading a committee created to implement activities contributing to waste management and to ensure effective involvement of governmental institutions.

“Most people in this area never knew real work. Now, they have experienced it. They also have families. The area is cleaner; the women who lost their husbands in gang wars and police firing are happier. It’s a beginning.”

By David South, Development Challenges, South-South Solutions

Published: October 2009

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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Bamboo Becomes Transport Option for the South

 

The sturdy bamboo plant (http://en.wikipedia.org/wiki/Bamboo) is enjoying a revival around the world as a building material. A strong, fast-growing and highly renewable woody plant, it is becoming increasingly popular as people seek out less environmentally wasteful alternatives to steel and other materials.

But who would have thought bamboo taxis would turn up on the scene?

A fleet of bamboo taxis is now plying the streets in Tabontabon, a municipality in The Philippines that is home to 10,000 people, most of them rice farmers.

Bamboo can sometimes grow more than 1 metre a day. While in Asia, it has long been a traditional construction material, people are now turning to it to make transportation vehicles. In The Philippines, there are 62 species of bamboo, up to 15 of which are suitable for industrial applications.

So-called habal-habal motorcycles, the most popular form of transportation in the town, are also the source of many accidents and are uncomfortable on sunny days or when it rains. A covered taxi service is both a safer and a more comfortable alternative.

The town’s mayor, Rustico Balderian, took the initiative to build a fleet of bamboo taxis. He set four criteria the new taxis had to meet: they should be low-cost, fuel efficient, safe and environmentally friendly. The bamboo has a higher tensile strength (http://en.wikipedia.org/wiki/Tensile_strength) than steel, which also requires vast quantities of energy to produce.

The taxis are 90 percent made of bamboo and are built by unemployed youth. They are divided into Eco 1 (a model that seats 20 people and runs for eight hours on one gallon of coco-biodiesel from coconuts) (http://cocobiodiesel.blogspot.com/), and Eco 2, which seats eight people, has a stereo and sound system, and also runs for eight hours on a gallon of coco-biodiesel.

Both are made by the Tabontabon Organic Transport Industry [TOTI] (http://totieco.multiply.com/).

Making vehicles out of bamboo is a serious endeavour that also has been under development in Japan. In 2008, Kyoto University’s Venture Business Laboratory (VBL) unveiled a unique single-seat electric vehicle equipped with a body made from bamboo. The vehicle was developed under the Kyoto Electric Car Development Project, which is one of the laboratory’s major initiatives. Nicknamed Bamgoo, this eco-car’s body is made of braided rods of bamboo, one of the local specialty products of the area.

Other bamboo modes of transport in the South include bamboo bicycles in Ghana. A partnership between an American bike designer and a Ghanaian government initiative is taking advantage of this local resource to manufacture bicycles for the local market – and as a source of export income.

Not only are the Ghanaian builders harvesting bamboo to make bikes for the domestic market, they are also offering a sophisticated online shopping service for the overseas market. People from around the world can now buy Ghanaian bikes using a website (http://www.bamboosero.com). Customers can choose frame builders by their specialty – cargo bike, mountain bike or road bike – and then order it online. The completed bikes are quality checked and then distributed by Calfee Design in California, USA. This approach keeps the middlemen out of the transaction, and means more money gets back to the bike builder.

Meanwhile in Cambodia, the legendary bamboo railway is a people’s solution to the poor service offered by the established railway system. In the northwest of the country near the second city of Battambang, an entire railway system has been built using bamboo.

The bamboo trains, called ‘noris’ or ‘lorries’ by the locals, are driven by a electric generator engine. Passengers sit on a bamboo platform placed on two sets of wheels. The bamboo train reaches speeds of over 40 km/h.

“We’re very careful,” 18-year-old Sok Kimhor, a 10-year veteran of the bamboo trains, told the BBC. “We look out for children and animals running across the lines, and we have to slow down when other trains come along.”

There is just one track, so when two trains meet, one has to be taken off the track to pass.

The regular rail service runs only once a week to the capital, Phnom Penh. This makes the bamboo train the only alternative for many people to get around. While the main railway station is deserted, the bamboo service is a hive of activity.

“They’re very safe – a motorbike taxi is too fast, and if I use one of those I sometimes get dizzy and fall off,” said Sao Nao as she sat on the rails with a small group of people. “On a bamboo train I can sit down and go to sleep. You can’t do that on a motorbike.”

Design for Development (http://designfordevelopment.org/) is also turning to bamboo for a transport solution. The Canadian NGO is working in Kenya on making five emergency medical transportation devices (EMTD), or ambulances, to move local people to health clinics or hospitals. Bamboo is locally available and they hope to set up a workshop and make the ambulances using local labour.

By David South, Development Challenges, South-South Solutions

Published: September 2009

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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Turning Street Children into Entrepreneurs

The UN estimates that 500 million people around the world are homeless, and UNICEF estimates India alone has 11 million homeless children on its streets (though it is difficult to pin down the figure). In order to survive another day, these children will work in one way or another. While there are many campaigns to ban children from working, and charities dedicated to getting them off the streets and into shelter, the raw fact remains: many of these children slip through the cracks and remain vulnerable, poor and neglected.

Most street children suffer from malnutrition, hunger, health problems, and abuse. They make ends meet by working various jobs or by stealing. While they have dreams, there is no mechanism for them to save for the future. It is a live-for-now existence that, if they survive to adulthood, means they will probably remain homeless and vulnerable.

Street and working children have money: it is a natural consequence of having to be resourceful to survive. But what they don’t have is access to banking services or trustworthy financial advice that can help them to gain wealth and move out of poverty and into a brighter future.

The Children’s Development Bank in India is one initiative that seeks to turn these neglected children into the next generation of entrepreneurs. The bank works on banking and co-operative principles, where savers are members and joint owners of the bank. Any child can save money with the bank and earn interest, as well as take out loans if they are over 15 years old. It was started in 2001 and was inspired by the Youth Bank in the UK. Interest made by the bank is shared by its members, as with many co-operative banks and credit unions.

The bank is managed jointly by children and adults. The children have a say in how the bank is run and on what conditions it should lend money. They also keep an eye on borrowers to prevent them from running off without repaying loans.

For these vulnerable children, it has many advantages: they can put money aside without fear of it being stolen or lost, save for important things like clothes, or pay for their education.

A key part of the bank’s mandate is helping the children build entrepreneurial skills for business. Mentors help the children choose a business model, select an occupation with minimal risk and more benefits, get training and solve business problems.

The bank has branches in India, Afghanistan, and Sri Lanka.

Ten-year-old Deepak Prahlad, a street child in Delhi, dreams of being a doctor.

“I know what it takes to be a doctor. I need to study hard and need to save a lot of money,” he told the Hindustan Times. For now, he works as a rag picker but has started saving 30 to 40 rupees a day in the Children’s Development Bank. The bank has 1,300 members in the city. It pays 3.5 per cent interest on savings accounts.

“Some of them want to fly very high,” said Rita Panicker, who helped set up the bank in 2001. “We have been working with street children for the past two decades. Some of these children are very talented and have entrepreneur qualities. One of the biggest problems facing these children was that they did not have a safe place to keep their hard-earned money. In fact, it was the children who came up with the idea of the children’s bank. It started with 20 members in 2001 – and now it has 1,300 members in Delhi.”

Sudesh, a 15-year-old manager who looks after the bank’s current accounts, said: “We are extremely careful about whom to offer loans since we do not want to see our members’ savings lost because of bad loans. The skills I have learnt here are going to stand me in good stead in life.” Managers are chosen every six months by the children and they compete for the job.

By David South, Development Challenges, South-South Solutions

Published: November 2007

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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Old Adage Gets New Life

 

Education is recognized as critical for development and improving people’s lives. Universal primary education is a Millennium Development Goal and countries are now allocating more funds for primary education across the global South. However, the options available to youth after primary education are often very limited.

The World Bank estimates that only nine percent of youth in the developing world will be able to go to a university or benefit from higher education scholarships. For the vast majority of youth, getting a job is often the only viable option to securing a livelihood; but in most developing countries the number of formal sector jobs is low and the only option is self-employment. Acquiring relevant training and practical skills can be crucial to becoming successfully self-employed. But where will the training and skills come from and who will provide it and pay for it?

This dilemma is being addressed by the “self-sufficient schools” concept. The model combines entrepreneurship and vocational education through school-based businesses that blend training and revenue-generation. The principle is simple: entrepreneurship and entrepreneurial skills are taught by successful entrepreneurs.

The model is being pioneered in several countries and has been successfully applied by UK-based charity TeachAManToFish in Ghana and Paraguay, targeting rural youth from farming families through a network of 250 vocational experts and institutions in 45 countries. The approach promotes a model for making education both more relevant and financially sustainable in rural communities.

Self-sufficient schools share several characteristics: they produce and sell goods and services; they focus on developing an entrepreneurial culture; they make a direct connection between theory, practical work and financial reward; they encourage learning by doing; they strive to keep improving in order to remain economically competitive; students are encouraged to work cooperatively; and students receive support after graduating, often in the form of microfinance for their new businesses.

In the South American nation of Paraguay, the Fundacion Paraguaya – San Francisco Agricultural High School – run by an NGO committed to poverty reduction through supporting entrepreneurship – found that small-scale farmers not only knew how to produce food, they also knew how to make a prosperous living out of it when given the right tools. Taking over a school previously run by a religious order, the NGO had the opportunity to put the concept to the test.

The organization’s head, Martin Burt states, ”It is not a matter of knowing how to grow the crop, or raise the animal; it is a matter of how to make money and then how to be financially successful doing farming in poor countries.”

The Paraguayan school is half way through its five-year plan, and already is covering two thirds of its recurring costs from the production and sale of goods and services, including specialist cheeses.

By David South, Development Challenges, South-South Solutions

Published: May 2007

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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Like this story? Here is a dirty secret: this website is packed with stories about global South innovators. We spent 7 years researching and documenting these stories around the world. We interviewed the innovators to learn from them and we visited them to see how they did it. Why not use the Search bar at the top and tap in a topic and see what stories come up? As for my work, I have been involved with start-ups and media ventures since the early 1990s. While most tech entrepreneurs were either still in their nappies in the 1990s (or just a drunken night away from being conceived in the 2000s), I was developing content for this new thing they called the "Internet". In the years since I have learned a great deal about innovation and digital and have shared these insights in the stories on this website as well as in the 5 issues of Southern Innovator magazine. So, stick around and read some more!    

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Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

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