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Rwanda begins export of ICT services, netted $4m last year

Friday January 02 2015
RwandaICT2412

Young ICT experts develop software at K-Lab. Rwanda targets double digit ICT exports growth in 2015. PHOTO | CYRIL NDEGEYA |

Information and technology communication savvy Rwandans have bolstered the country’s export earnings through developing applications that they are exporting to the East African region and the continent.

Figures provided by the Rwanda Development Board’s chief operating officer Claire Akamanzi indicate that the ICT services exports have hit $4 million mark. The revenue is expected to register $11 million by the end of this year.

The export revenue growth to double digit will be boosted by a recent $7 million deal Filmax Web Technologies, a Rwandan based e-governance application maker won to construct an e-governance website for South Sudanese government.

This should be a relief to the government that seeks to reduce its widening balance of payment through exporting services.

In the first half of 2014, Rwanda’s trade deficit continued to widen, according to the central bank due to the increased imports. This led to a slightly decelerate of exports to imports to 24.6 per cent from 27.5 per cent in the same period last year.

The services sector has been the fastest growing at a consistent double digit and grew at 12 per cent last year beating agriculture, industry and construction in the country.

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READ: How achievable are Rwanda's plans to export ICT services, products?

Analysts say the South Sudanese is investing in ICTs to improve service delivery to its citizens travelling long distances.

South Sudan settled on Filmax Web Technologies partly because the firm has a vast expertise in e-governance applications after developing one that has helped the Rwandan government excel in e-governance.

Linking departments

The company designed, developed and implemented the Rwandan local government portal that linked 30 districts in 2008, Northern Province, Ministry of Youth and ICT and president’s office in 2009 at $138,000.

Business analysts believe South Sudanese government wants to replicate Rwanda’s e-governance success story.

“We are supposed to deposit $500,000 on our account as part of a commitment to the government of Southern Sudan to show we are reputable company. I have already sourced the money from a partner. And if all goes as planned, work in Southern Sudan begins early next year,” said Robert N. Ford, chief executive of Filmax Web Technologies Ltd.

Website development

Filmax also constructed Ugandan Embassies websites in France, Belgium, Rwanda and Italy and interlinked them.

Rwanda Utilities Regulatory Agency (Rura) director general Patrick Nyirishema said exporting ICT services is beginning to happen and can only increase.

“The future of ICT services export looks bright. The evolution of ICT sector is happening pretty fast. Young people are establishing companies and sourcing the services in the region and Africa,” said Mr Nyirishema.

Coms Africa, another Rwandan company that developed a mobile application, which allows a mobile phone subscriber to borrow airtime, is Rwanda’s biggest ICT services export.

According to Mr Ford who is also the vice chairperson of Private Sector Federation, the take off of the application has been positive with the developer earning millions of dollars.

Mr Ford said the application was being used in 28 African countries.

A young graduate Patrick Bucyana, has developed a bus payment system, which allows passengers to load money on the card and swipe it whenever they board. The application targets regional markets.

Cashless economy

Filmax Web Technologies developed an application that motorcycle taxi will use to effect payments. The development deepens the region’s drive to a cashless economy. A prototype of application has been developed waiting to be tested.

“It has gone through the six cycles of development requirement, analysis, design, implementation, testing and maintenance,” said Mr Ford.

The regulator of the ICT sector, Mr Nyirishema believes the regional integration and the developed ICT infrastructure has opened up market for the ICT services exports.

Despite the potential of exporting ICT services has exhibited, Rwanda’s young app developers’ face a number of challenges, among them lack of finance.

The developers also complain about the lack of local market as foreign firms are edging them out of business for competitive tenders.

Some of these challenges have to be addressed for Rwanda to fully benefit from the ICT export services.