Silicon Valley In Africa? Is it possible, is it going to happen and where?
It is now my fourth day in Kampala and each day is more exciting than the last. The more people I meet the more I start to feel the emergence of a real tech scene here in the city. The incredible energy, drive and spirit is hard to ignore. It is exciting to see what kind of infrastructure is already in place and I am sometimes taken aback by the level of activity.
This is a posting I will be continually updating as I go along. What are your thoughts on the subject and how does Kampala compare to places like Nairobi, Lagos and Jo’Burg? As always, I invite any feedback, thoughts and ideas on the subject!
What is the Market potential?
The global market for IT services is worth one trillion US Dollars. Uganda has the potential to attract some of this business and offers a number of advantages i.e. preferential access to the European Union, United States of America, Canada and Japan for the ‘generalised system of preferences.’ Bilateral trade and investment agreements have also been signed with the United Kingdom, Italy, Kenya, Tanzania, South Africa, Egypt, India, China, Germany, the Netherlands, France, Denmark, Mauritius and Switzerland. These agreements create a viable market opportunity for IT products from the country.
At regional level, Uganda is a member of a number of economic bodies. Uganda is a member of the East African Union and a member of the common market for eastern and southern African states (COMESA). This represents a market of 20 countries and over 380 million people. The trade volume of COMESA alone is in excess of US$ 90billion (2005). 47% of this market value is comprised of exports. Uganda has worked to reduce barriers to entry, tariffs and other legal hurdles that increasingly make the country conducive to investment.
Also exciting, is to see venture capitalist already here in the country busy searching out opportunities. I will be conducting interviews in the coming weeks and look forward to reporting more on this. Needless to say there is a lot of movement in this space and the timing of my project could not be more critical. I am eager to learn and see more!