Statement from the Market
Export Opportunities for ICT Equipment and Components

Summary

"What's Africa's export potential? Nil in such a skill, capital and technology intensive export sector. African firms should concentrate on adding value in those sectors where it has possibilities of being competitive.

Paul Kudobo - Africa Online

"It is simple. You have to start with a vision, build a strategy on the basis of that vision, articulate that vision within the firm and then assume leadership."

Vadim Levitin, e-Commerce Institute
Summary

The ICT sector is the most exciting in international trade in terms of its current growth rate at 12-15% and new business methods that are emerging (e.g., subcontracting, outsourcing, etc.). Developing country economies are, understandably, net importers of ICT equipment and components- 20% of total imports of developing countries and 14% of total imports of transition economies.

While developing countries are increasing their share of the ICT export market, only a few developing countries are actually involved (e.g., India, China, the Philippines, Viet Nam, Hungary, Poland, South Africa and Mexico). Countries successful in the ICT sector exhibit a willingness to change, openness to trade, ability to absorb technology, have a customer-centric approach, form technology partnerships and network.

The strategic options to building an ICT export sector include the need to address the fear of being absorbed by multinationals, reduction of the gap between trade policy and business, better understanding and misinterpretation of WTO agreements, improving the knowledge of the global ICT market, and closing the digital divide.

Conclusions from this session are that foreign investment and technology transfer are fundamental to the development of export capacity by a developing country. Only those countries which can establish "the right environment" for such investment and technology transfer should endeavour to develop export capacity in the ICT sector.

For many countries, it may be impractical to develop export capacities in the ICT sector ... too much investment, too technology-reliant, too competitive. Priority should be placed on more effective use of ICT to develop competitiveness in other sectors.

(Reporting: Brian Barclay, ITC)