Wednesday, February 1, 2017

Is Rwanda transforming its Technopole project into a large prairie?

In the late 1990s the government of Rwanda (GoR) recognized that ICTs could play an important role in accelerating the socio-economic development of the country and the creation of an information and knowledge economy.

In 2000, GOR established Vision 2020 a government development program in Rwanda, launched by president Paul Kagame in which it is said that the "government is actively trying to attract multinational corporations through investment-friendly policies to develop a Technopole".

In the National Industry Policy document published in April 2001 by the Ministry of Trade and Industry of GOR, one of the policy actions describes the need to "allocate land for industries, develop industrial parks and Special Economic Zones (SEZs)– leveraging Public-Private-Partnerships (PPPs) for development and management of SEZ such as ...Technopole (park for ICT, nanotechnology, etc)".

In january 2013, the government through Rwanda Development Board (RDB) announced plans to set up an ICT park that will host a collection of technological investments including training, industries, research and development.

According to Patrick Nyirishema, the Head of IT at RDB at the time, the plans to set up Kigali Technopole are on the right track. The Technopole will be built on the grounds of the Kigali SEZ, located 10 km east of Kigali City’s business district. The project plans reveal that the Innovation City will comprise all elements of a typical urban centre including corporate buildings, retail, leisure, sports, accommodation, health care center and other amenities with the regional ICT Center of Excellence (CoE) hosting Carnegie Mellon University (CMU) as its first anchor tenant. 

In September 2013, the masterplan for the development of a Technopole in Kigali is published together with a viability and business plan. The Technopole will provide much needed infrastructural improvements, including guaranteed electricity and ICT infrastructure for companies that will be located in the park. Therefore the Technopole is Rwanda’s best bet in fast-tracking the country’s ICT transformation as it has the potential to diversify jobs beyond agriculture, provide new middle-income jobs, drive the development of SMEs, and increase product and service innovation.

                                                             Technopole Master Plan

In May 2016, the government of Rwanda launched Kigali Innovation City (KIC replacing the name of Technopole), a flagship project to drive digital transformation through its dynamic ecosystem of technology clusters in which domestic and international companies will innovate and deliver products and services for global markets and with Carnegie Mellon University as its anchor tenant.

"Kigali Innovation City is the natural home where indigenous Rwandan technology companies can innovate and serve the whole market of the African continent. It is also the best home in Africa for multinational technology companies to domicile their subsidiaries, bring their technologies and skills, and conduct the innovation necessary to create optimized products and services for the African market. "

The concept of KIC is similar to Silicon Valley that was developed around the world class anchor Stanford University which became  the epicenter of technological innovation over the past half-century. Stanford's role as an incubator of technology is clear. In the last 50 years, university faculty, staff and graduates have launched some 1,200 companies. Today, more than 50 percent of Silicon Valley's product comes from companies of Stanford alumni.

While comparisons with Silicon Valley are always difficult, the KIC concept presents the same dynamic of close proximity between a world class university (CMU), entrepreneurs and IT businesses.

So far Rwanda's KIC plan made a lot of sense and was strategically better positioned than other projects in the region as I explained in this post. But while the vision was clear, besides many declarations of intention reported above and the development of its master plan, its execution has not delivered to its expectations. In the National Information and Communication Technology (ICT) Strategic Plan for the period 2011 – 2015 the target was 50 ICT companies operating in the Technopole by 2015, 50 ICT intellectual property registered annually by 2015, and the ICT sector contributing to 15% of the economy by 2015. None of that happened.

The only real development has been the start of the construction of the ICT CoE, financed by the African Development Bank that will host Carnegie Mellon University to be completed by the end of 2017.
                                 The construction site of the Regional ICT CoE to host CMU

That the development of KIC did not follow the aggressive plan of the government is not surprising or unique for such an ambitious project and the vision is still strong. It is even getting stronger as I will explain later.

However, recently I was surprised by a presentation of a new plan for KIC presented by the KIC chief strategist to representatives of the President's Advisory Council visiting the ICT COE construction site. But before I get to this new plan, let me first cover some important and recent developments that took place in Rwanda.

Key to the success of the Technopole is the investment of private sector in the development and also the attraction of high level skills that would be needed for the development of the industry sector in the country.

Since the government of Rwanda signed an agreement for the development of the ICT CoE with CMU in 2011, the government has been very active and successful in attracting other major tertiary education and research institutions to Rwanda.

In 2014  Rwanda announced that it was set to host the region’s International Centre for Theoretical Physics (ICTP), a science hub that seeks to advance scientific education in the developing world. The Italy-based ICTP founded in 1964 by the late Nobel Laureate Abdus Salam, announced the opening of its branch campus in Rwanda, to operate as the East African regional base. 

In early 2016, at the Ministry of Education a partnership agreement was signed between the Government of Rwanda and the African Institute for Mathematical Sciences (AIMS) – Next Einstein Initiative (NEI). AIMS was established in 2003 in South Africa but at the invitation of President Paul Kagame, AIMS will join the science and innovation ecosystem that the government is building with the goal of being a continental hub in technology and will move their headquarters to Kigali.

The African Leadership University (ALU), a private learning institution was launched in Rwanda in September 2016. Students in ALU will have similar courses with those in Cambridge of Massachusetts in United States. It will start with the school of business and will soon house undergraduate offerings set to launch in 2017.

In addition, Rwanda was selected to host the Smart Africa Alliance secretariat having demonstrated commitment as a leader in information and communications technology promotion. Smart Africa headquarters opened in Kigali early 2016. Dr Toure, the former secretary-general of the International Telecommunications Union, was appointed as executive director. 

Rwanda can be proud of these accomplishments, creating an education and research hub with world class institutions in Kigali that should deliver the skills and expertise required for its Vision 2020 strategic plan to become a knowledge based economy. These new world class partners will at least triple the number of highly skilled students that will graduate each year in Rwanda. Adding to that the extraordinary effort by the GOR in Higher Education that has seen the number of students increased from 3,261 in 1994 to 87,013 in 2015, this is making the KIC strategy and project even stronger than it was at his inception, providing probably the best high level skills available in the region for future investors in KIC.

Let me now get back to the new plan presented by the chief strategist of KIC. The base idea of the plan is to install all the new education partners AIMS, ALU and ITCP in KIC where CMU was the first anchor tenant planned. That idea makes a lot of sense to create a critical mass of expertise and skills and to foster interaction and collaboration between those institutions in the spirit of a dynamic ecosystem that can nurture innovation and new businesses. 

So far so good, but the problem is in the execution plan.

KIC is a 61 ha (150 acres) site. A quarter of it (25% or 15 ha) has been dedicated to CMU and the ICT CoE as shown in the master plan. The rest of it (75% or 46 ha) was dedicated for the city including business offices, government buildings, shopping center, financial district, support services, green space, etc.

In the new plan presented by the chief strategist which I reproduce here as accurately as possible since we did not get a copy of it, the city has been reduced to less than 20% of the space while CMU, AIMS, ALU and ITCP would take 80%! So 80% of the space will be dedicated for higher education institution campuses where we can imagine their buildings being built in the middle of large green landscaping typical of university campuses, like a large prairie.

                                          New KIC plan presented in December 2016

It is difficult to understand the logic beyond that change if only to provide each institutions with similar space. The CMU academic building (shown above) covers less than 1 ha in a zone of 15 ha. The building is only representing Phase 1 of the project. Phase 2 will see the construction of a conference center, a student activity center with cafeteria and sports facilities, students lodging and visiting professor guest house. Even when Phase 2 will be completed, there will be lots of space left in the 15 ha zone. CMU presented RDB with the idea to offer that space left to the new institutions like AIMS and ALU. There is enough space for that. 

There a several advantages to that approach. First those institutions can share common facilities described in CMU Phase 2 above, i.e. activity center, students lodging, etc., thereby reducing the total cost. Second and probably more important is that this sharing will facilitate and encourage contacts and synergy between their students. It is this cohort of world class engineering, business school, mathematics and physics students that will be the new generation of innovators and leaders that will transform Africa. Third by concentrating all the universities in the space proposed for universities in the master plan, it leaves the original 75% of KIC available for the real objective of it, i.e. the development of an ICT industry and hub as originally planned.

I mentioned earlier that the KIC project did not achieve its goals yet, but I also said that there was nothing really abnormal about it. Indeed, I can imagine how difficult it has been for the RDB investment promotion services to convince businesses to come to KIC which has been a large maize field since the beginning of the project. 

But now that the anchor and flagship regional ICT CoE building is almost completed and that the base road infrastructure is being built, and that Rwanda was successful in attracting AIMS, ALU and ICTP in addition to CMU, the value proposition is much more attractive for those potential investors. 

I guess that what is left is the legal framework. The business plan issued with the master plan gives an overview of some of the incentives that could be offered at KIC: 
  • Corporate income of 20% after tax holiday of 10 years
  • Capital Gains Tax-Exempt to the SEZ enterprise 
  • Tax on Dividend- Exempt within SEZ  
  • ICT-Research, Innovation & Development (Including software development)
    • Allowable Expense– Double Tax Deduction. 
    • Effective 15% subsidy of actual expense taken off SEZ enterprise tax liability 
To my knowledge, I don't think that those have been approved yet by the GOR cabinet. If so, now is the time to get it done to complete the fantastic opportunity that KIC will offer to Rwandan, African and International IT investors. They understand that Africa is the next frontier and that ICT will be a key driver for its development. Unfortunately, often Rwanda was not on their radar map as a potential investment place for IT in Africa. KIC is changing that perspective now and it becomes probably one of the best opportunity for those who want to develop the African innovation market where new ICT solutions that are adapted to Africa's environment and needs will be developed by Africans for Africa.

Seeya later alligator....

Sunday, May 1, 2016

Raising the Bar in Africa’s Higher Education: Ten Principles to Improve Higher Education in Africa

In a first posting “Africa’s Higher Education Deficit is Threatening its EconomicDevelopment”, I analyzed both the quantity and quality gap between Africa’s Higher Education and the rest of the world.
In this second posting I would like to suggest ten simple and basic principles that could impact the quality of higher education. These principles do not require significant investments. That does not mean however that they will not require significant efforts from all stakeholders to be implemented.

First I suggest three ideas to improve the quality of course content and teaching methodology.
1)    Move up from rote learning

The Bloom’s Taxonomy of Educational Objectives [1] defines six hierarchical cognitive levels of thinking complexity.

In many African universities, education only addresses the first two levels: remembering and understanding. Often all that is required from students is to be able to remember the content that was taught by the instructor and repeat it to show understanding of what it means.

Faculty need to lead their students into the next levels: applying, analyzing, evaluating, and creating. This is particularly important for engineering studies where one expects them to come up with new inventions and innovation leveraging their creativity. It implies to get students more involved in creative work in their assignments, projects, and tests. Instead of getting them to simply repeat (remember) what they learned in the course, instructors must ask them to come up with their own ideas on how to address a problem by putting the theory into practice, using knowledge in response to real circumstances. For example in the “Business Strategy” course that I’m teaching, after understanding the theory, students are required to apply it to a real business. In collaboration with the business executive team of that enterprise, they analyze their market collecting and organizing data from different sources. Then from that analysis they evaluate the different strategic options and judging their relative potential, they finally create a business strategy to be submitted to the executive team of that enterprise. In doing so, the students acquire a much better understanding of the theory by implementing it in a real world situation.
Another valuable exercise is to ask students to present their ideas in front of their fellow students, engaging in interactive discussions about the ideas presented calling upon their critical and logical thinking.
While there is no financial cost in applying the Bloom’s model in class, it will require significant work from the professors both by adapting their teaching method and their evaluation process. It is more difficult to evaluate a creative work from a student than grading answers to questions about existing content.
The implementation of the Bloom model requires equipping the students with the tools needed to succeed, i.e. non-technical soft skills like communication skills including presentation and writing skills, teamwork and collaboration, critical thinking and problem solving. This training needs to be added to the curriculum to provide the students with the appropriate tools. To do so professors must move away from reliance on knowledge transmission only and accept to integrate these in their teaching.

2)    Use MOOCs to improve course content

While Massive Open Online Courses (MOOCs) have enrolled students from developing countries pretty much from the start, there have not yet been many attempts to systematically include MOOCs as part of targeted education efforts in low income countries. The quality of their content could be used by African professors to improve content of their courses and achieve a better implementation of the Bloom’s cognitive levels. This is particularly promising because teachers then pass what they learn on to their own students: when they make use of MOOCs resources in their classrooms, they multiply the effect.

3)    Get students feedback on courses

Aside from measuring students, universities should develop mechanisms to measure the quality of the courses taught by their faculty. Several websites exist that allow students to rate their instructors, such as “rate my professor”. Here we need to be cautious as it is difficult for those websites to identify sincere from fake ratings. The last thing you want is for a student to vindicate her/his (maybe rightfully) low grade by trashing the grading professor on those sites.
Instead, we recommend for each university to introduce their own private rating systems such that students registered for a course are automatically given the opportunity to rate that course after its completion. What is important here is that the result be used not to penalize professors but rather to help them improve the quality of their teaching and learning through student feedback. After several consecutive surveys, instructors can reflect on the feedback and use it for performance and development reviews to make changes to their course content and teaching method.
These surveys can also be used by academic committees to promote outstanding professors and encourage others to improve their teaching quality, potentially inviting them to “teaching excellence” seminars.

Next I suggest encouraging hard work and providing benefits to those students who are willing to make the extra effort.

4)    Increase the passing grade level

In most African universities, students can get their degree with 50% of the grades. We suggest increasing that to a minimum of 60%. At Carnegie Mellon University (CMU), you must have a 75% average of the grades (B grade) to get your master degree. The objective here is to change the “good enough” mentality that often permeates students. Obviously one would hope that professors don’t change their grading schema accordingly to allow students to pass. Robust standard grading methodologies need to be implemented.

5)    Develop a Dean’s List program for the best students

Based on their results after the first year of their bachelor degree, the best students are invited to join the Dean’s List program on a voluntary basis. They are personally introduced to the Dean of the School upon their selection. For the remaining three years of their bachelor degree and if they continue performing at a top level, the following benefits are offered to Dean’s List students:

1.     Smaller classes and better instructors.
Classes have a much lower student/instructor ratio with smaller class size which makes discussion easier and allows for more group work, class presentations, and other high impact pedagogical practices. Inspiring faculty are selected for Dean’s List classes where they can develop more innovative teaching practices in these courses which they can then bring into their regular sections. Being in a Dean’s List class does not imply that it will be easier for students, at the contrary. The pace is faster and more challenging, since students are surrounded by other students of the same caliber and, often, the same interests. Students are offered with deeper opportunities to explore and understand the material. It is the quality of intellectual work that those students seek out.
2.     Paid internships.
Getting paid for internship is another benefit for Dean’s List students. These better students are probably those that should be recommended for paid internships, another principle discussed later (principle 9).
3.     Better dorms.
Dean’s List students are lodging together in usually better dorms integrating more space where they can interact and continue the group learning process.

While some will criticize the Dean’s List as an elitist approach, we see it rather as a way to encourage hard working students. It is the student’s decision to work hard to be a Dean’s List student and to accept being in the Dean’s List section when their performance gives them that opportunity.

In order to address the common complaint that there is a profound mismatch between the degrees offered and the skills required by the labor market in Africa, I suggest three principles involving closer relationship between industries and the university.

6)    Establish a board of industry advisors

University departments usually have a curriculum review committee who determines course offerings (the Curriculum) for any given academic program. These review committees are comprised of professors and department heads who usually review program and course criteria from a solely academic perspective.
The objective of this principle is to get the private sector involved in university curriculum overview by establishing a “board of industry advisors” comprising business people selected by the university department and working in industry areas related to the department’s curriculum. For example a computer science department could invite representatives from the IT industry: IT vendors, software vendors, telecommunication companies, internet service providers, etc. This board meets with the department faculty once a year during a one day meeting to discuss the curriculum content. The only cost to the department is the organization of that meeting. Usually board members pay for their own travel expenses, and are proud adding their board membership to their resume.
There are several benefits to such a board:
1) Its members (usually industry senior executives or middle management) have a good understanding of their industry and can advise the department about industry trends they see and the resulting skills that will be needed by the industry. This can help the department adapting the curriculum accordingly;
2) The board members are the people who ultimately would recruit the students. Getting them to participate in the department’s curriculum definition will give them more confidence that the department will deliver the right skills.

It is worth noting here, however, the ongoing discussion on whether higher education institutions (both in the developed and developing world) is beholden to meet the needs of industry, or should remain above the marketplace and perpetuate the quest of knowledge and pure academics for "the greater good". We will refrain from engaging that discussion and instead explore ways in which tertiary education in Africa may sustain market-driven growth.

7)    Offer visiting professor positions to industry professionals

A common complaint from students is that their professors do not have practical experience about what they are teaching. The university should make it easy for departments to provide visiting professor positions for people from the industry with experience in the field. Industry people like sharing their passion and experience with young people by teaching at universities. They rarely do it for pure financial reasons, some may even teach for free. Therefore, the cost of a visiting professor is usually lower than the regular professor. But the experience they will bring and share with students can be invaluable.
Another alternative to a visiting professor teaching an entire course is to invite industry guest speakers in the course to share practical experience with the students.
We have to ensure that these visiting lectures aren’t supplementary to the ‘usual’ teaching but complementary and become an established part of course delivery e.g. 1 in every 4 lectures.

8)    Invite enterprises to submit industry problems

Traditionally graduate programs allow students to choose their own final thesis subject (sometimes not related with real industry problems) or have them to choose from a list submitted by professors with little industry experience. Instead thesis subjects could be selected from a list of industry problems submitted by local or regional enterprises. Students then work in teams of two-three students to solve these problems under the supervision of the enterprise itself. The work of the students to solve the submitted industry problem is free for the submitting business but results are usually not guaranteed as it is considered as an academic exercise. Nevertheless enterprises are interested by this free labor that often provides them with interesting outside views for solution to their problems. This may take some time to develop as the university needs to break the distrust from the industry for them to submit their problems. But as soon as students can show good performance, the word will spread. At CMU-Rwanda we receive three times more problems submitted by industry than we can actually handle.

9)    Get paid internships from local and regional enterprises

In Africa (and in some European countries) the tradition is that students’ internships are not paid for. As a result, those internships are often useless as there is no real commitment from the hosting company to mentor and provide the student with a meaningful work experience during the internship. That is completely different when they pay for the internship. Again this requires the business to believe that the students will be able to perform the job proposed. This is also a way for the private sector to contribute to improving Higher Education by financing internships for the best students who can be potential future employees.
Here I recommend this option for Dean’s List students only (see principle 5). The university could grant academic credits for the students who do well during their internship.

When implementing principles 7, 8, and 9 for graduate programs, it will offer students the possibility to spend at least 30-40% of their graduate program in direct contact with industry. This should reduce the gap identified earlier and guarantee better employment of the graduating students.

Finally I suggest using alumni network to monitor students’ employment.

10) Organize and mobilize alumni networks

Alumni organizations are well developed at American universities. They serve many purposes: develop a network of alumni that can be tapped into by graduating students for employment support, by the university for fund raising, and for other purposes.
Alumni organizations were not possible in Africa in the past due to the high cost of communication but free e-mail and social networks have now reduced that cost to almost zero.
Africa cannot afford to continue investing in universities that deliver students that are unprepared to work in the country or regional economy. Alumni networks can be used to track the employment of students after they graduate. Statistical data can then easily be collected showing the percentage of students finding  jobs over the years after graduation, the level of income they earn, and the types of jobs they are hired for. This, in turn, can be made publicly available in an anonymous statistical form granting some monitoring of the data to prevent fraud. That data will indicate how successful a university is measured by the career data of their students, allowing students and their families to select the best universities and encouraging the other universities to improve their quality of education if they want to survive.
Student alumni should also be used as University Ambassadors in their communities to help with student’s recruitment.

Each principle described here and applied by university departments can be monitored for progress. For principles one and two, the department can monitor the number of faculty applying the full Bloom model in their courses and using MOOCs content to improve their course content. For principle 3, survey results can be monitored over time and be used as a quality indicator of courses in the department. Principle 4 can be implemented at the department level (and better at the university level). The number of students engaged in the Dean’s List program is another quality indicator that should progress over time. The number of industry visiting professors, the number of problems submitted by industry and the number of paid internships offered are all indicators of a better integration with the regional industry that will surely attract more students to the department. Careful monitoring of those indicators should be used for setting goals for the department and encourage all stakeholders to contribute to the general improvement of the quality of education delivered.

These principles are not magic bullets, but the advantage of these ideas is that they have no or small cost associated with them. They “only” require sustained efforts by the department faculty motivated to improve the quality of the education they deliver.

[1] Bloom, B. S.; Engelhart, M. D.; Furst, E. J.; Hill, W. H.; Krathwohl, D. R. (1956). Taxonomy of educational objectives: The classification of educational goals. Handbook I: Cognitive domain. New York: David McKay Company.

Africa‘s Tertiary Education Deficit is Threatening its Economic Development

 “Education, and higher education in particular, is the fulcrum and pivot upon which all other developments rest and rotate around. In the words of Andrew Carnegie, 'Upon no foundation but that of popular education can a man erect the structure of an enduring civilization'” – Professor Olugbemiro Jegede, Sec. General,  Association of African Universities, 2012

Business in Africa is getting serious. The continent's markets have grown at unprecedented rates for the past decade, a consumer class with significant purchasing power is forming, at a time where Europe and the United States are in a more-or-less chronic states of stagnation.

Opportunities abound for foreign investors and African entrepreneurs alike, but there is a consensus that, while they certainly form key parts of the picture, growth in the region has to be about more than oil and minerals, and will require more than just highways and factories. In 2010, Howard W. French of Columbia University concluded that “All things considered, resource-based or infrastructure-driven development [...] appear unlikely to lead to a meaningful African renaissance."

A Harvard University study published in 2005 by Bloom et al ("Higher Education and Economic Development in Africa") was among the first to document the importance of tertiary education on economic growth and poverty reduction. Building on that research, UNESCO in 2006 declared that: "Expanding higher education contributes to promoting faster technological catch-up, improving a country's ability to maximize output and decrease the knowledge gap and poverty in the region. There seems to be an increasing recognition of a positive contribution of higher education to economic development, and there is a strong case for expanding the base of tertiary education in the developing world."

After years of explicitly steering funding away from universities in favor of primary education, the World Bank in 2008 concluded that, "[...] maximizing productivity and achieving competitiveness will depend upon success in augmenting human capital and raising its quality. The key to economic success in a globalized world lies increasingly in how effectively a country can assimilate the available knowledge and build comparative advantage in selected areas with good growth prospects, and in how it can enlarge the comparative advantage by pushing the frontiers of technology through innovation."

Everyone, it seems, at last agrees that higher education plays a pivotal role in sustaining growth and development. It is however disappointing that in the new sustainable development millennium goals defined by the U.N. in 2015, education is barely addressed through Goal 4: Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.

Human capital is freely available on the African continent in the shape of a huge, young, but largely unskilled workforce. But increasingly highly skilled labor is required as the African markets mature and grow -- labor that is in short supply on the continent. In 2012, global HR specialists Going Global reported that "More than half of South African CEOs report it is becoming increasingly difficult to recruit workers and the shortage of skilled candidates is the most significant recruitment challenge." "Pioneers on the Frontier: Sub-Saharan Africa's multinational corporations" reports that finding skilled workers is a constant challenge for Multinational Companies (MNCs).

A 2010 follow-up report from the World Bank examined the financing of higher Education in Africa, and it concluded that "in most Sub-Saharan African countries, enrollment in higher education has grown faster than financing capabilities, reaching a critical stage where the lack of resources has led to a severe decline in the quality of instruction and in the capacity to reorient focus and to innovate. Public funding in most countries is already overstretched, and alone it will not be sufficient to respond to the growing demand for access to higher education while delivering a level of quality that provides students with the skills necessary to succeed in current and future labor markets."

So what is the status of higher education in Africa? How does it compare with the rest of the world in terms of access and quality?

We need to recognize the significant gap between higher education in Africa, and in particular in sub-Saharan Africa[1] (SSA) and the rest of the world. The gap is twofold: a problem of both quantity and quality.

The rate of access to higher education in Africa is only 7% compared to the world average of 25 percent, and discouragingly low when compared with the West’s 76%.  

In a 2009 speech to the Africa-US Higher Education Initiative Partners Conference, National University of Rwanda Rector Silas Lwakabamba declared: "We all recognize that basic education is indeed important.  However, it is also increasingly evident to policy makers and educators that a sustained focus on higher education is necessary to achieve a 10% graduation rate – a minimum for any country to ensure the possibility of sustainable development."

One of the reasons for the low rate of access to higher education is the low number of universities relative to the population. One way to measure access to university is by counting the number of universities per million inhabitants.

In Africa, there is only one university per million inhabitants, which is ten times less than in North America. In addition, since 65% of Africa's population is less than 25 years old, the demographic pressure further exacerbates the chasm. Overpopulated classes of several hundred students are common in many universities.

Specifically, the continent faces a dire challenge when it comes to the future requirement in one of the most promising areas: Information and Communication Technology (ICT). In spite of a sluggish world economy, the demand for skilled ICT managers and developers remains high outside the continent. Driven by cloud computing, big data, the "Internet of things," and mobile computing, computer and information technology jobs are projected to grow 12 percent in the U.S. over the decade that will end in 2024, and the demand for IT workers exceeds their internal capacity building. 

As a consequence Western universities and countries are heavily recruiting students abroad and in particular in Africa, to the detriment of African start-ups and investors looking to implement projects on the continent.

In addition there is a profound mismatch between the degrees offered and the skills required by the labor market in Africa particularly in sciences and technology, in part because it is cheaper and easier for cash-strapped public African universities and profit driven private universities to educate humanities graduates than e.g. engineers.

It could be argued that working as an ICT engineer or entrepreneur on the African continent is significantly harder than in the developed world where you can rely on a team of qualified colleagues and lots of resources. Managers and entrepreneurs in Africa need to be able to think on their feet, outside the box and be adaptable to adverse conditions. They need to be the best of breed -- or at the very least well trained.

Only a handful of African universities currently offer a Master's Degree in Electrical Engineering/ICT, and they are by and large underfunded and quite unable to deliver the cutting edge education and skills required by the rapidly developing and constantly evolving ICT market. Instead, a substantial number of African students travel overseas to obtain ICT-related degrees, but it is worth keeping in mind that only 30 percent of Africans studying abroad return to the region after graduation. Moreover, the degree they obtain overseas may not be particularly well suited to the challenges they face in Africa.

As a result, the thousands of students graduating in ICT, Computer Science and related fields every year join the vast unemployment cohorts as businesses cannot make use of their poor or inappropriate skills. This is a major challenge for a region where ICT is a critical development driver.

When we then compare the quality of universities in Africa, the deficit is even more dramatic. Looking at the number of universities appearing in the 2015/2016 QS World University Ranking of the top 800 universities, we find that while Africa’s population represents 16% of the world population, it has only 2% (18) universities ranked in the top 800 and only 4 in the top 400. SSA only has 4 universities in the top 800 (in Uganda, Kenya, Tanzania and Ghana) and none in the top 400.

Some of the reasons for the low quality of African universities are linked to the difficult economic and demographic environment:
Rote learning: Many universities still apply the old rote learning methods sometimes inherited from the colonial time where student are simply requested to repeat what the instructor said in order to succeed, with no requirement for critical and creative thinking.
Absentee instructors: Professors don't show up for class about 20-30% of the time. Nominal remuneration incentivizes professors to seek supplemental income, preventing them from dedicating their time to their students. As a consequence the schedule of learning is irregular and it directly impacts students and the quality of their learning.
Curricular mismatch: The curriculum content is often outdated and not adapted to the business needs in the region. A computer science professor at a major university in South Africa confessed to me that their curriculum has been unchanged in the last twenty years and many professors never change or update their syllabus. There are very few direct contacts between universities and industry.
“Green” Professors: One significant measure of the capability of the professoriate to provide quality research and instruction is doctoral-level certification. In Africa, doctoral-level faculty are the minority, sometimes with percentage as low as 20%. In addition studies have showed a disturbing trend at several universities of a slide in the proportion of academic staff with doctoral degrees, symptomatic of the further decline of the quality of African universities.

Difficult access to- and low quality of- higher education combine to create major disadvantages for the development of sub-Saharan Africa. The development of any nation is linked to its technical labor force. SSA only has 83 scientists and engineers engaged in R&D for every 1 million people compared to about 1,000 to 1,500 in the developed world.

The quantity gap is significant and will require significant long term investments. Attempts have been made to address the issues surrounding higher education in Africa, and significant sums have been spent by foreign donors (e.g. the "Partnership for Higher Education in Africa" initiative that invested $440M in higher education from 2000-2010). In Senegal, the government under the leadership of its Minister of Higher Education Mary Teuw Niama with support from the UNESCO have launched a remarquable project to build new universities and science cities.

At the contrary, the quality gap of higher education can be addressed in great deal with simple immediate reforms that do not require significant financial investments. I will suggest ten simple and basic proposals that could impact the quality of higher education in Africa in my next blog posting.

Seeya later alligator...

[1] Here we define sub-Saharan Africa as all the countries South of North Africa and excluding South Africa.

Sunday, June 8, 2014

From ICT4D innovation to real solutions to Africa's problems

ICT4D (Information and Communication Technologies for Development) refers to the use of Information and Communication Technologies in the fields of socioeconomic development, international development and human rights (Wikipedia). The enthusiasm generated around ICT4D is real and it is clear that economic development can be accelerated and reinforced by access to information resource. However ICT4D has also generated some controversy. In this blog, I addressed some of those concerns in the following postings: The Unbearable Lightness of ICT4Development and Is ICT4D going to change Africa? or is it ICT4B .

In discussions about "how can ICT4D help Africa?", by far the most used example is the one of the African farmer who can now access the prices he can get for his crops on the market through ICT4D innovations using Internet. In fact the farmer could simply call friends in the city where the market is and get the prices. This simplistic approach is ignoring the major problem, and that is how can the farmer get his products to the market and get a fair and best price? Farmers loose one third of their crops between harvest and sales due to bad warehousing and transportation conditions.

A new organization the East Africa Exchange (EAX) established here in Rwanda is addressing that problem. (The following description is mostly taken from EAX's website and press releases.)

EAX is a subsidiary of Africa Exchange Holdings, Ltd. (AFEX). AFEX’s vision is to create lasting institutions that will capitalize on Africa’s agricultural potential, support African farmers, achieve food security, provide energy security and improve Africa’s overall global trade and capital market competitiveness. AFEX’s goals are to transform agriculture by creating more bargaining power for smallholders, including access to information, storage, and finance; increase Africa’s global trade competitiveness by building economies of scale; and deepen Africa’s capital markets by creating greater liquidity.

EAX offers the following services: Warehouse Operations, Trading, Warehouse Receipt Financing, Clearing and Settlement, and Risk Management and Compliance. 

EAX is providing professional warehouse storage and inventory management, including moisture testing, drying, cleaning and weighing of stock prior to storage to reduce storage losses. It’s expected that good storage management will translate into better revenues for farmers.

EAX recently signed a cooperative agreement and  memorandum of understanding with the Rwanda Ministry of Agriculture and Animal Resources (MINAGRI) to work together to provide grain storage and warehouse management services in support of farmer cooperative groups across Rwanda. Part of the agreement includes the Exchange managing thirteen (13) warehouses which have been set up by the Government of Rwanda around strategic production areas under land consolidation.  

EAX and the MINAGRI will participate in the development of agricultural value chains, particularly farmers, ensuring that farmers have access to more diversified markets beyond just the ‘’farm gate‘’ to improve their chances of securing a better income and reward for their toils. The partners also seek to transform small holder farmers from rural agriculture to commercialization.

The Exchange will provide electronic warehouse receipts, so that farmers could trade their grains through EAX world class trading platform with the help of EAX brokers. EAX operates a fully automated trading platform where participants can buy and sell products from the convenience of their location of choice, or trade from trading terminals provided by the Exchange. The trading platform is powered by NASDAQ OMX and can facilitate auctions, reverse auctions, spot trading, forwards trading, and futures trading. 

The farmers could also use their electronic warehouse receipts for loans from the Exchange’s partner banks.

An ICT4D internet portal providing access to market prices in the city for farmers is nice. But it only scratches the surface of the problem and may look "unbearably light". The EAX approach is much more comprehensive and involves more complex problems to solve, including the building of quality warehouses, the use of the NASDAQ trading platform, the delivery of electronic warehouse receipts to farmers than are accepted by banks as collateral for loans, etc. But that is the price to pay if we want to really solve the problem instead of creating false hope.

In addition to real solutions another requirement for success is leadership. Paul Kukubo, the CEO of EAX has a history of success as the the founding Chief Executive Officer of the Kenya Information and Communication Technology (ICT) Board. Paul has led the team that developed the Kenya National ICT Masterplan 2017, and was a leading member of the Konza Technology City Master-planning team. His leadership is another guarantee for the success of EAX.

Seeya later alligator...