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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Many Positive Trends for Africa in 2010

While 2009 saw the global economic crisis spread around the world, the story is more complex and more hopeful than many believe. For Africa, various trends are pointing to positive economic development in 2010, despite the continent’s numerous political, social and environmental challenges. Pragmatism is driving stronger economic ties between Africa and the rest of the world, while long-running trends are delivering opportunity to millions despite setbacks.

The Standard Chartered bank (http://research.standardchartered.com/Pages/home.aspx) believes sub-Saharan Africa will jolt itself out from the 1 percent growth it had in 2009, to reach 4.7 percent growth in 2010 and 5.7 percent in 2011 (http://research.standardchartered.com/researchdocuments/Pages/ResearchArticle.aspx?&R=66952). The reason? The world’s strong appetite for commodities and food, which will continue to draw in business. And much of this business will be done by that powerhouse of the global South, China.

The fact that China is trading better infrastructure – roads, rail and ports – for commodities means other businesses can also benefit from the improving environment. Throughout the downturn in 2009, China actually increased its investments in Africa.

The United States is also trying to increase its economic relationship with Africa. It wants a third of its oil imports to come from West Africa by 2015.

And the competition for food in the world, as countries address the global food crisis, has seen companies from the Middle East to Asia to Britain purchasing land in Africa to grow more food.

The Annansi Chronicles blog on African business and culture trends (www.annansi.com) has come up with a list of the big trends to watch out for on the continent in 2010. They build upon many of the patterns that have emerged in the past few years in Africa.

The blog predicts that Africa will increasingly be an innovation incubator. Concepts like the bottom of the pyramid – where the poor are seen as an unserved marketplace of needs – will draw more private companies in to innovate new products and services. Already, products and services trialled in Africa are then launched in other places in the world. One example has been mobile phone banking. The blog sees the challenge for Africa as finding ways to increase innovation and harness its economic benefits within the continent, and to direct resources to the African pioneers out there who need money and infrastructure support to grow their ideas.

Mobile phones will continue to be the source of opportunity in Africa in 2010. Get ready for more businesses to take advantage of the move from analog to digital in Africa, as fibre optic cables continue to expand. Just as the introduction of broadband internet in developed countries gave birth to new businesses like You Tube (www.youtube.com), so it will create new opportunities in Africa. The key to growing the prosperity from this is to see governments and the private sector better connect with African technology pioneers, as can be found in hot spot countries like Ghana.

Along with technology comes content. And the people to make the content interesting and attractive will be Africa’s so-called ‘creative class’: savvy young African entrepreneurs and thinkers. They have drawn on the rising urbanization of the continent and greater international travel to explore new ways of representing African culture. This has come forward in the explosion in media, fashion, music and design. The blog believes the 2010 FIFA World Cup in South Africa (http://www.fifa.com/worldcup) is going to thrust the world’s attention on to Africa’s creative class: a global media burst that will be an opportunity not to be missed.

And this will also challenge global perceptions of “brand Africa.” Already, the world’s tourists flow to Africa in greater numbers, defying decades of negative media publicity. Brand Africa will be up for grabs in 2010.

And finally, while China has been the big story in terms of economic investment in Africa, India will start to make more moves to catch up by flexing its information technology muscles. Look for more joint partnerships between African countries and Indian technology companies.

In short, Africa has as many positive trends for 2010 as negative ones. It is just a matter of focusing on the good so the negative will not have a fighting chance in 2010.

By David South, Development Challenges, South-South Solutions

Published: January 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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Brewing Prosperity Creates Good Jobs

 

In the Democratic Republic of Congo – home to the world’s largest United Nations peacekeeping mission and decades of bloody civil war – a brewery has not only survived, it has thrived to become a popular brand throughout central Africa. By being a success, the Brasimba brewery has brought prosperity and high-quality jobs to Congo’s second largest city, Lubumbashi (http://en.wikipedia.org/wiki/Lubumbashi), and proven that a modern business can do well there despite the obstacles.

The Brasimba brewery has an ultra-modern factory (http://www.viddler.com/explore/kaysha/videos/298/) complete with high-tech laboratories to constantly test the quality of the beer. It employs 700 people – most of whom are Congolese – and produces 250,000 bottles of Simba beer every day, according to Monocle magazine. The company’s beer brands are Simba Biere du Lion and Tembo Biere and its slogan is a proud Notre Biere (Our Beer).

Lubumbashi is a city described by the BBC as without “child beggars, without potholes and where there are no festering mounds of rubbish.”

A study of the economic impact of breweries in Uganda and Honduras found that more than 100 local jobs, from farmers to truck drivers, depended on every person employed by a brewery (http://www.inclusivebusiness.org/2009/10/sabmiller-impact-assessment.html). Markets across the South are seen as growth areas for beer companies: China’s beer consumers now outnumber those in the U.S. By 2003, world sales of beer reached 148 billion hectolitres (Euromonitor). Overall, it is forecast that global beer consumption will rise by 3.5 percent by 2015, mostly in the South.

Apart from creating steady employment, breweries also help to improve the development of the advertising and marketing businesses of a community as they promote their various brands, and they support local activities like sport with team sponsorship. They also offer a local example of how to run a modern beverage business, with mechanized production, distribution systems and laboratories to ensure hygiene and quality standards are maintained.

Brasimba has been operating in Lubumbashi for eight decades, through the twists and turns of the country’s history. The city has prospered from its copper mines and wisely used that wealth to improve the city’s general prosperity.

The brewery has successfully become a regional favourite, producing beer that is drunk not only in the surrounding Katanga province, but also in Zimbabwe and Zambia. It’s an impressive accomplishment for a company operating in such a turbulent environment. Distribution of the beer by truck is not easy, with the trip taking between six days and two weeks depending on the weather and the condition of the roads.

And the beer is not cheap, at around US $1.48 for a big bottle — a sure sign there is money to be made.

The healthy economic environment has also spawned a beer war with rivals Bralima, owned by the multinational Heineken. With five breweries in Congo and its head office in the capital Kinshasa, Heineken claims the lessons it has learned in Congo are helping it to change its marketing and business strategies far away in the United States.

It recently transferred its commercial director of Congo operations to head up operations in the United States. Heineken Chief Executive Officer Jean-Francois van Boxmeer told the Bloomberg news agency that working in Africa was “certainly worth three times Harvard Business School.”

Heineken’s market share doubled in the Democratic Republic of Congo in just four years and Africa has become a significant market for the brewer.

By David South, Development Challenges, South-South Solutions

Published: December 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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Innovation Villages Tackling MDGs

 

The global economic crisis that began to roll across the world in September 2008 is threatening gains made against poverty and hunger all over the South. As Kevin Watkins from UNESCO’s Global Monitoring Report told the Financial Times, “With the slowdown in growth in 2009, we estimate that the average income of the 391 million Africans living on less than US $1.25 a day will take a 20 percent hit.”

How well millions of people survive the economic turmoil will depend on how local communities respond. And there are innovating communities across the South that show it is possible to succeed. By studying the microcosm of test villages, where quantifiable results are being tracked, lessons are being learned on how to achieve the Millennium Development Goals (http://www.undp.org/mdg/).

The challenge of matching improving living standards and quality of life with environmental sustainability has been taken up by one village in Colombia. The technologies it has developed over the past few decades have been adopted around the country.

In Las Gaviotas, Colombia a unique experiment was hatched at the end of the 1960s: to see if a village could survive – and even thrive – while eschewing fossil fuels and industrial agriculture. It found its first test in the oil crisis of the early 1970s. For Las Gaviotas’ survival, meeting energy needs became paramount.

One of the simple concepts the community applied is a take on the physical reality that energy is never created or destroyed, it just moves from one medium to another. Las Gaviotas believes in using all the sources for energy that can be found in a local area first, before seeking out others.

Founded by development specialist Paolo Lugari,Las Gaviotas (http://www.friendsofgaviotas.org) is located in a desert region of Colombia. The area covers a vast territory comprising three-fifths of the country but is home to just 10 percent of the population. To Lugari, the harsh environment is a challenge to be overcome. To begin to reverse the arid environment at Las Gaviotas, the villagers reversed the dry climate by planting trees.

This had the effect of increasing local rainfall by 10 percent, making it possible to do other economic activities.”The only deserts that exist in this world are deserts of the imagination,” Lugari told the New York Times.

The 200 people living in Las Gaviotas have been able to get by without guns, police, a mayor, cellphones, television or the Internet. Nobody uses a job title — instead the adults in the community rotate jobs.

While the villagers do not use many of the technological tools people associate with modern life and prosperity, they do have a culture of invention. The inventions they have come up with include a solar kettle for sterilizing water and a 8,012 hectare pine forest which is harvested for resin to make biofuel for trucks and motorcycles. The resin is also used to make varnishes and linseed oil.

For years Colombia’s ongoing civil war raged around the community. Violent drug traffickers and private armies destabilized the country for decades. But despite this mayhem, Las Gaviotas has attracted rural peasants seeking to double their wages (US $500 a month) and enjoy the quiet life away from the war.

“We try to live a quiet life, depending on nothing but our own labor and ingenuity,” said Teresa Valencia, a teacher who has lived in Las Gaviotas for three decades.

Other products developed by the village included a turbine powered by a small, one metre high dam that produced 10 kilowatts of electricity, a windmill that was able to spin despite light breezes, and a pump strong enough to draw water from the hard-to-reach savannah water table.

Pride of place was the village’s hospital. Despite hot temperatures and high humidity, the hospital used clever technologies like subsurface tunnels and double ventilation systems in the walls to cool its operating theatre. The roof slid off to allow ultraviolet sunlight to disinfect rooms. After healthcare reforms in Colombia, the hospital was closed. Undefeated, the village turned the hospital’s kitchen into a potable water bottling facility, and reduced the need for hospital visits by making sure everyone in the area had access to clean water.

The community’s approach inspired scientists and architects, who came to design homes, laboratories and factories for Las Gaviotas.

One significant success has been the windmill-driven water pumps developed by Las Gaviotas. Invented by Jorge Zapp, head of the mechanical engineering department of Bogota’s Universidad de Los Andes, it is a lightweight windmill unit weighing barely 45 kilograms. The blades use the airfoil found on airplane propellers to make the most of light breezes.

In the 1980s, UNDP hired the Gaviotas team to install water and windmill pumps in other places in Colombia. Thousands have now been installed in Colombia and the design has been copied throughout Latin America.

Other inventions include a solar-powered kitchen, a water pump powered by a children’s see-saw, and a zeppelin that floats above the savannah plains to detect forest fires.

While the community has been able to forge a success, it can’t avoid the ups and downs of the global economy entirely. Competition from cheap imports of pine resin have pushed down the price the community can charge.

But in a topsy-turvy world, and surrounded by a civil war, what Las Gaviotas has achieved still seems impressive. “We have survived,” said Andrea Beltran. “Maybe, at this time and place in Colombia, that is enough.”

More recently, a much-publicized experiment is also underway in the Millennium villages. The Millennium Villages (http://www.millenniumvillages.org/index.htm) is a joint project between Columbia University’s The Earth Institute and UNDP, and is a bold experiment working with villages in Africa to identify and test solutions to help in achieving the Millennium Development Goals (http://www.undp.org/mdg/).

Britain’s Guardian newspaper has also been sponsoring and tracking changes in the villages of Katine sub-county in Uganda (http://www.guardian.co.uk/katine). Comprising 25,000 people, the project began in October 2007, and is conducted in partnership with the African Medical and Research Foundation (Amref) and Farm-Africa in Katine.

What is useful to people looking for solutions is the way the project is being tracked in detail on the newspaper’s website.

In India, the Model Village India (www.modelvillageindia.org.in) concept pioneered by Rangeswamy Elango, a head of the village of Kuthampakkam near Chennai, has now expanded to 30 model villages. Its approach is about being positive, eschewing griping about problems and instead getting down to work to solve them. Its success is based on an ancient Indian self-organizing model, the Panchayat, and Elango has modernized it to become what he calls The “Network Growth Economy Model” – a direct challenge to the “special economic zones that benefit only capitalist owners,” he said.

Gaviotas: A Village to Reinvent the World – 10th Anniversary Edition by Alan Weisman details further the achievements of the village (www.amazon.com)

By David South, Development Challenges, South-South Solutions

Published: November 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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New Appetite for Nutritious Traditional Vegetables

 

Throughout the history of farming, around 7,000 species of plants have been domesticated. Yet everyday diets only draw on 30 percent of these plants and even this number has been going down as more people consume mass-market foods (FAO).

One consequence has been poor nutrition resulting from the reduction in consumption of high-vitamin foods, leading to stunted mental and physical development across the global South.

Once-rich culinary traditions have wilted and left many people not knowing what to do with formerly common vegetables and fruits, even if they can actually find them in markets.

Between 94,000 and 144,000 plant species — a quarter to a half of the world’s total — could die out in the coming years, according to an estimate by Scientific American (2002). Among them are vital food crops, threatened by a world in which climate change is causing more weather turbulence and diseases and viruses can spread rapidly and destroy crops.

This scale of plant loss risks leaving the world’s food security dependent on fewer – and more vulnerable – domesticated species.

Despite being rich in vitamins, minerals and trace elements, African leafy vegetables have been overlooked in preference for cabbage, tomatoes, carrots, and other imported produce. But with rising food prices at local markets, people are looking again at these neglected African vegetables. In East Africa, this includes indigenous plants like amaranth (http://en.wikipedia.org/wiki/Amaranth), African eggplant, Ethiopian mustard, cowpea, jute mallow and spider plant.

Like tomatoes and potatoes, some of these vegetables are members of the nightshade family — but unlike those imports, they are indigenous to Africa. According to Patrick Maundu of Bioversity International (http://www.bioversityinternational.org/), African nightshades provide good levels of protein, iron, vitamin A, iodine, zinc, and selenium at seven times the amounts derived from cabbage. The high levels of vitamins and micronutrients, he says, are especially important to people at risk of malnutrition and disease, particularly HIV/AIDS.

As the cost for basic foodstuffs have shot up during the global economic crisis, growing food has become an increasingly lucrative source of income. Estimates of the number of people doing this across Africa range from hundreds of thousands to millions.

In the bid to reduce the over-dependence on imported foods, urban farming is coming to the rescue and becoming an effective survival tactic in Africa’s fast-growing cities. Thousands of urban workers in Kenya’s capital, Nairobi, are supplementing their wages by investing in farms growing food.

Eunice Wangari, a nurse in Kenya, supplements her US $350/month salary with money earned from growing food. “For too long our country has been flooded with imported food and westernized foods,” Wangari told The Guardian newspaper. “This is our time to fight back – and grow our own.”

In Kenya, this type of agriculture usually involves an urbanite taking a stake in farmland outside the city. Relatives then do the farming. Mobile phones play a key role in this approach. The urban dweller can keep in touch with the farm by phone and receive updates on progress. They use their knowledge of urban food tastes to then adjust the crops and increase profits.

An accountant, James Memusi in Nairobi, is growing mushrooms in a spare bedroom in his home and then selling them to hotels and supermarkets, according to The Guardian. Miringo Kinyanjui is selling unrefined maize and wheat. Loved for its nutritional qualities, the flour is also flavoured with amarathan, a common green vegetable in Kenya.It is a clever way to make the most of the fact that many urban dwellers have some access to land in the countryside.

Pride is also returning to the topic of food, as people re-discover traditional foods and vegetables and fruits.

In Liberia, president Ellen Johnson-Sirleaf has launched a “Back to the Soil” campaign to get urban dwellers to farm and help the country lose its dependence on foreign food imports.

Liberia is trying to reduce the importing of rice and tomatoes.

In Zambia, the embracing of traditional foods has been fuelled by recipes used by a chain of popular restaurants. This appetite has driven demand for dried pumpkins, ‘black jack’ leaves and fresh okra.

The success of this revival of traditional foods has attracted big multinationals as well. Unilever Kenya ran a campaign in 2008 called ‘taste our culture,’ promoting African herbs and spices.

By David South, Development Challenges, South-South Solutions

Published: November 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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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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