Telecom is an Economic Force-multiplier in Africa

Telecom is a major power for transformation in Africa.

In the military, there are certain weapons systems that make every other weapon system better, and can help a unit of one size operate as if it were much bigger than it really is. These systems are called force multipliers. fighter aircraft and attack helicopters are examples.

At this time in Africa, telecom is a force-multiplier for economic development in Africa because:

• The current hard wire structure is largely inadequate and of poor quality
• Tribal communities are "high communication" cultures, with social processes and institutions which are already highly inter-dependant, inclusive, and communication intense.
• There is opportunity to leapfrog past western small business practices

This is in fact already happening. You can see it when you look at the Kiva small business plans.

How does it work?

With mobil communications with internet in a low infrastructure environment, micro enterprise and small business business can:

• Conduct most banking transactions
• Order from vendors
• Receive orders
• Schedule deliveries
• Maintain mentoring relationships

All this can leverage economic growth.

-Lee

What follows is a summary from Telecom Magazine

Souheil Marine, the manager of the digital bridge project at Alcatel, believes that investing in telecom in Africa will help create wealth, rather than diverting limited funds from more valuable projects - though he did add that the African situation is quite different to that seen in, say, Europe.

He argues that networks should only be built when there is a clear demand for a relevant service. He also believes that new technologies such as WiMAX will allow many African countries to leapfrog the use of legacy infrastructure.

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