Seeking Piece of Lucrative Internet Revenue

Seeking Piece of Lucrative Internet Revenue

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Jevans Nyabiage

8 September 2010


Nairobi — Kenya is positioning itself to reap from the lucrative software production segment.

With more than six million users of the internet, research indicates that its importance outstrips those of several key developed countries.

Even so, the latent demand for local content is underlined by the fact that surveys show that lack of the same is the main reason many Kenyans shy away from accessing the websites.

Last week, the Kenya ICT Board unveiled the first seven winners of the local digital content grant.

In June this year, the board invited applications for the first round to promote the development of local digital content and software applications.

The process attracted 667 submissions.

It is a clear indicator

"With this number, it is a clear indicator that Kenya is rife with innovative talent and with requisite investment it is expected that content will transform the way Kenyans live, work and play," says Communication and Information minister Mr Samuel Poghisio.

The main purpose of this grant is to propel the emergent lucrative but yet under-exploited local content industry to growth.

It targets local software developers, film, animation, advertising, publishing, gaming and education professionals and all content creators.

According to Mr Poghisio, by involving the private sector, youth and ICT firms, Kenya can create a knowledge-based economy that transforms the country into a middle income one like the Asian tigers that were once at par with Kenya 40 years ago.

"Building a competitive local content industry is not the sole responsibility of government and regulator. It is a collaborative process that requires active participation from all," he said.

Entered third wave

Dr Bitange Ndemo, PS Ministry of Information and Communications said, "the world has entered the third wave of industrialisation where the economy is not only driven by the factor of resources and infrastructure but also by knowledge creation and commercialisation."

In the next three years, the Kenya ICT Board expects to have disbursed Sh320 million.

The amount is divided into government information portal - Sh200 million, and private sector content and applications - Sh120 million.

The next round of awards will be held on September 28 for private sector - individuals and firms and government information portal - individuals.

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