Prioritising ICT infrastructure investment for socio-economic development

It goes without saying that Information and Communication Technologies (ICTs) play a pivotal role in the global economy being a key driver and enabler for all sectors. Consistent and direct investment in ICTs is important as it can enhance job creation, improve access to information and services, and help the government to operate more efficiently and effectively. Consequently, ICTs propel economic development and growth, reducing poverty, increasing both government revenue and household income. In addition, ICTs allow communities access to basic services such as education, affordable health care, social grants, housing and sanitation. According to the World Bank, Namibia’s economy decreased by an average of 0.2 percent between 2016 and 2019 leading to persistent high unemployment and poverty levels. However, with the planned investment in green hydrogen, economists predict the Namibian economy to slowly recover in the coming years. Nonetheless, the government must find an immediate solution to improve the socio-economic status of our people.

Vision 2030, Namibia’s key Policy Framework for Long Term Development has the aim to ‘improve the quality of life of the people of Namibia to the level of their counterparts in the developed world by 2030’. Highlighting where Namibia ideally would want to be, Vision 2030 makes reference to an ‘industrialised’ Namibia with modern infrastructure. Furthermore, future aspirations of this Vision include advancing ICT infrastructure and services, alongside increasing local production of ICT equipment and providing support to entrepreneurs in the ICT sector. Since the advent of computers, politicians and bureaucrats recognised the great potential that comes with technology. An immediate link between technology and development was ascertained, exposing the world to the ‘digital divide’. This is the gap between those with access to ICTs and those without access, considering several demographics leading to imbalanced access to digital technology.

HPP

Cognisant to this reality, and complimentary to Vision 2030, the Harambee Prosperity Plan I and II (HPP) was drafted, recognising the importance of ICTs to fast-track the reform processes. Therefore, the government acknowledges that modern, unfailing and reliable infrastructure is key for improved and continued economic growth. Resultantly, all sectors will thrive and the government will be in a position to provide basic services to its people, improving livelihood. This is supported by a 2002 UNDP Human Development Report that states that ICT has the ability to improve human proficiencies and influence economic growth through increased productivity.

Technology brings about easier interaction and access to government services through high-speed internet and mobile broadband. It is without a doubt that all industries and sectors are heavily reliant on ICTs. During 2020, the world was caught off-guard when Covid-19 hit and caused havoc in every area of our lives. Already struggling economies were badly hit and the developed countries had to tighten their belts feverously due to economic volatility. Schools were closed, banks automated their services and companies required employees to work remotely. This sudden shift in life required reliable, accessible and affordable ICT infrastructure and related equipment. The government’s level of investment in ICT infrastructure was exposed. Schools migrated to online lessons which meant that each child and student had to have a gadget, data and reliable network. Companies had to invest in the same to ensure that their employees can work remotely. The country had to pay a huge price and big lessons were learned. Today, farmers in the Aminius Constituency’s village of Otjiuamapeta cannot transact financially online as often as they would want due to persistent poor network. This means that their children cannot browse the internet for research, nor farmers search for advice on farming techniques, unless they travel to Aranos and Aminius. Efforts for e-government can only work where there is infrastructure to carry these services. The same may be argued for potential investors, what investor would want to settle and invest in an area where they cannot even monitor their finances at a click of a button?

Profit

Unfortunately, in Namibia, ICT infrastructure, such as the setting up of towers, is at the behest of the telecommunications operators. They are profit-driven and would not set up their infrastructure unless it makes economic sense. Therefore, for you to become a beneficiary of this infrastructure, your community will have to meet certain requirements.

Now that we have established that government’s intent and perhaps will for developing ICTs exists, we are left wanting to ascertain how important this realisation is in monetary terms. Recent budget documents show that the infrastructure sector continuous to receive the highest development budget share and benefits from Outside the State Revenue Fund for implementation of programmes such as road construction and upgrading, air transport infrastructure, railway network development and water infrastructure, but there is no provision towards ICT infrastructure development by the state. It begs the question: How will we realise the provisions of Vision 2030 and HPP II? It is evident that the ministries responsible for ICT, technology and innovation should be adequately funded to carry out projects that will establish the backbone and infrastructure required for ICT development. Government, through the afore-mentioned entities should set-up country-wide infrastructure for each Namibian to be able to have a choice of access to broadband regardless of their economic status. This would mark the beginning of empowering our people, end the high costs of ICTs and improve access to government information and services. A 2014 report by the Bank of Namibia on Infrastructure Financing confirmed the need for scaling up investment in ICTs to achieve national development objectives.

To conclude, economic development is an indispensable part of any country as it has the potential to improve the standard of living of individuals, attract and grow businesses and promote sustainability. Going forth, the government’s development budgeting process should be informed by empirical evidence, current needs and trends to grow the economy to achieve development goals. A sizeable amount of resources should be allocated to upscale the country’s ICT infrastructure in order to align ourselves with international practices. Finally, priority should be given for roll-out of the ICT infrastructure in hard-to-reach areas where operators do not have footprint for them to set up their networks, fund ICT start-ups and create innovation hubs.

Emerencia Nguarambuka is a student at the Namibia Business School, pursuing a Master of Business Administration in Public Sector Management.