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Unlocking the Potential of the Internet a Scoping Study in the Mozambique Regional Corridors of Beira and Nacala

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Unlocking the Potential of the Internet a Scoping Study in the Mozambique Regional Corridors of Beira and Nacala Unlocking the Potential of the Internet A Scoping Study in the Mozambique Regional Corridors of Beira and Nacala Study Commissioned By Executive Summary Mozambique, located in the Southern Machipanda border and to Malawi and people) and is again concentrated in Internet penetration, with market support the Universal Access Fund to African region, attained its independence Zambia via the Villa Fronteira border with large urban areas like Maputo. stakeholders reporting critical challenges effectively deploy its resources to provide from Portugal in 1975. A 16-year civil Malawi and from Malawi to Zambia via the in speed, lack of common Internet affordable internet access in rural areas. war, which ended with the signing of Mchinji border post. The Nacala corridor As one considers approaches to application standards and poor service Awareness the Rome Peace Accord in October 1992, is linking the port of Nacala to Malawi stimulating and promoting Internet quality. This has hampered business There is a significant gap in skills to left Mozambique one of the poorest through the Chiponde border post and the development, we need to recognise the operations to effectively expand outside of operate internet-enabled devices. countries in the world with virtually no Mchinji border post to Zambia. This scoping full scope of the challenges that must be major cities like Maputo, Beira and Nacala. Online commerce is limited and there is infrastructure, including roads, schools study is focused on the Mozambican addressed from both a demand and supply general mistrust of using the Internet for and health facilities. Communication components of these two corridors from the side. Given that these challenges tend We recommend investing in a research commerce due to the lack of adequate networks were systematically targeted in ports of Mozambique to the borders with to be multi-layered, improving Internet programme to understand the internet laws and regulations to protect online the fighting. Zimbabwe and Malawi. access only addresses one impediment quality needs of small and medium consumers. linked to Internet development. Even businesses in each of the provinces and Now, two decades of peace and radical Based on the significant investments from with networks in place and accessible, use this as an input for new service We recommend investing in the existing reforms have transformed Mozambique the private, public and NGO sector, the barriers remain due to insufficient quality regulations, in addition low cost Community Media Centre infrastructure into one of the fastest and most future of the region is potentially bright. demand. This study has found the technologies like “TV White Space” has and utilise them as ICT labs to train and consistently growing economies in the Yet the question remains what investment following key challenges and opportunities shown significant potential to provide build awareness among the population, world. Yet, despite its positive economic in Internet infrastructure is required to across the supply and demand landscape quality connections in rural areas, we investigate innovative Internet fundamentals, there are several areas— support this future growth potential, what in Mozambique; and specifically the recommend to test this technology with applications that can improve SME specifically lack of ICT infrastructure—that are the specific needs and demand areas for Mozambique sections of the Nacala and the existing Community Media Centre productivity and how it can be tailored for will critically hamper its future growth. Internet, what are the specific challenges Beira corridors: (CMC) network in the Beira and Nacala use in Mozambique and finally work with preventing internet development, and what corridors. government to ensure there is adequate Significant investment has been made actions are required from government, Availability Affordability laws/ regulation in place to protect over the years to improve infrastructure, private sector organisations and donor The ICT sector has undergone significant Although service costs have gone down, users of online commerce (e.g. computer the Mozambique Regional Getaway agencies. In this Point of View, we explore sector reforms and is currently in the rates still remain high. Mobile Internet emergency response teams). Programme (MRGP) being a prime these important questions. process of revising the telecoms law, access costs around $30-50 a month example. The MRGP objective is to but it lacks a clear vision and roadmap while fixed broadband average between While there is no overall solution to contribute to the improvement of the Recognising the importance of ICT to align sub-sectors in Mozambique, the $100-$300 depending on bandwidth. Internet connectivity, individual efforts Southern African transport (roads, rail, in the development of the country, industry is faced with high entry barriers Mozambique is ranked 162 out of 169 by various stakeholders do compound to and ports), energy and ICT regional the Mozambican Government has due to the high cost of infrastructure and countries on the ITU broadband index in make a significant contribution. These infrastructure network that uses made significant reforms to support requires enforceable regulation to improve terms of Internet cost, making it one of stakeholder groups have converging Mozambique as a transit route for the development of the Internet. But downstream competition in the market. the most expensive countries globally. interests and the potential to collaborate international trade. The programme Mozambique is still lagging the rest of to reach viable solutions. Capturing these aims to positively impact regional and continent in terms of connectivity. We recommend investing in the We recommend promoting the entry and opportunities will require the combined international trade, increase employment development of a clear broadband strategy setup of local production facilities of efforts of government, business and and reduce poverty along the main At the end of 2012 there were around that will align the efforts of each sub- low cost computers, establish a scheme broader society. corridors leading to Mozambique. 8 million mobile subscribers in the sector, foster greater competition locally to provide subsidies or tax credits to country, which brings its mobile through improved infrastructure sharing small and medium enterprise’s to help By seizing these opportunities The two main corridors linking the penetration rate to just 33 percent, a regulation and lastly reduce the cost of them access the needed internet enabled Mozambique can set itself on the path landlocked countries of Zambia, Zimbabwe, very low figure against the average 76.4 entry for new competitors through easier equipment and finally look at how to for growth and solidify its position on the Malawi and Southern DRC to the sea ports percent mobile penetration rate across rights of way access to civil infrastructure. Africa growth agenda. of Mozambique are the Beira and Nacala the rest of Africa. Additionally, it is corridors. The Beira corridor extends from estimated that between 60-70 percent Quality the Port of Beira to Zimbabwe via the of mobile subscribers in Mozambique are Quality and stability of Internet concentrated in the capital city, Maputo. connection is a critical hurdle to improve Internet penetration is even lower at only 5 percent of the population (1m 1 2 Methodology Methodology Study Objective This report sets out a critical gap analysis The prioritisation mapping helped in relied upon as such. Neither Accenture nor and delivers recommendations on how the identifying six sectors, namely Agriculture, its employees accept responsibility for any Mozambique Regional Gateway Programme Financial Services, Government, Health, loss or damage arising from reliance on the (MRGP) can face the challenge of inclusive Education, SME/Retail & Transport, where information contained in this publication. growth and development in both strategic the largest economic and social impact of regional corridors through Internet connectivity the Internet is likely to be concentrated. This study has been funded by UK aid from solutions. The project aims to understand the the UK Government, however the views potential of the Internet in Mozambique for Study Limitations expressed do not necessarily reflect the UK social and economic development, specifically Government’s official policies. in the Mozambique sections of the Nacala and This report offers a rapid assessment of Beira corridors. the Mozambique ICT landscape and is not Acknowledgements meant to act as a detailed academic study. The report has the following The report was developed over a 10-week This report has benefitted greatly from components: period and the authors recognise key the valuable inputs from stakeholders • Demand and Potential of the Internet limitations to the outcomes of the study. operating in Mozambique. We would like Assess the needs and demands for Very few studies exist to provide detailed thank the following organisations for their Internet connectivity by sector (e.g. coverage of the Beira and Nacala corridors contribution to this research: health, education, agriculture, SMEs, in Mozambique as well as sector demand. transport etc.). The research team focussed on interviewing • Aga Khan Foundation (AKDN) large representative stakeholder groups • Alliance for Affordable Internet (A4IA) • Current Landscape and Supply of Internet with headquarters in Maputo and • Council
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