Why Ke ya, Ho e to Afri a's Sili o Valley , is set to e the Co ti e t's Ulti ate Te h Hu

It is easier to pay a taxi fare by mobile phone in Nairobi than it is in New York.

HISTORY has shown that economic development is intrinsically linked to technological

innovation. Just look at the likes of the printing press, which sparked the Renaissance in Europe,

Ne o e s stea e gi e, the a guard of the i dustrial re olutio , or even semiconductor electronics and microchips from the last century, which laid the physical foundation for the

virtual world.

Jumping back to the present, and turning our attention to Africa, and specifically Kenya, we see

a country that has pioneered a mobile technology economy that points to future trends in the

rest of the orld. Ke as te h olog ser i es se tor has gro fro i to ore than 300 million in 2013.

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Calli g a ta i i Nairo i soo shatters the Wester orlds outdated pre onceptions about Kenya and developing economies. As the Economist notes

(http://www.economist.com/node/21560912), it is easier to pay a taxi fare by mobile phone in

the city than it is in New York. 17 million Kenyans over half the population - use the M-Pesa mobile payments system, making the country a leader in mobile payments technology. Monthly

transfers and payment of goods and services amount to around a staggering 733 million

($1.13 billion).

Mobile based economy

Many emerging countries, particularly African nations such as Nigeria, Kenya and South Africa,

typically have fewer people connected by landline and therefore find it easier and cheaper to

install mobile telephone networks. This means that these countries have had different

economic development paths compared to those in Europe and North America. Emerging

nations have bypassed the analogue age and have jumped straight into mobile digital networks.

This, combined with few people having traditional bank accounts, provided the perfect setting

for a thriving mobile payments-based economy.

U til relati el re e tl , outh Afri a as regarded at Afri as core technology hub, principally due to its superior infrastructure and more mature investment market. However, multinational

corporates have since moved to other fast-growing African countries. Whilst the likes of

Mauritius, Rwanda and Tanzania have experienced a rapid increase in modern services and

technology, Kenya is a better bet for investors because its technology is becoming the key

driver to economic development and growth. Importantly, the policy decision-makers in Kenya

seem to agree.

In 2009, backed by the Kenyan government, four fibre optic cables came ashore, bringing a

new, faster internet connection. Prior to this, the internet was only available via satellite and

was too expensive for many users. After 2009, prices fell and, since then, the number of people

using the internet has tripled to almost 12 million. And with 74 mobiles to every 100 Kenyans,

rather than expensive laptops it is via mobiles that Kenyans are connecting to the internet.

Afri a s Sili o Valley This i pro ed o e ti it has helped la the fou datio s for Afri as ili o Valle i Nairo i. Du ed ili o a a ah , this is a area i Ke a that has attracted a range of tech start-ups and venture capital firms. International tech giants such as Google, Intel, Nokia and

Microsoft have sites in Nairobi and IBM has recently opened a new tower block, the IBM

I o atio Ce tre, hi h is the o pa s first research lab in Africa.

Furthermore, in Konza, 60 kilometres away from Nairobi, construction of a new techno-city is

pla ed. These i est e ts are lear otes i o fide e i Ke as status as a glo all -recognised hub for technology and innovation.

With a burgeoning smart app industry, Kenya is producing apps that solve problems particularly

relevant to Kenyans. One example is the M-Farm app, which provides farmers with food pricing

information and is helping them to achieve fairer prices for their produce. Equally, iCow is an

app designed to help boost the productivity for small-scale dairy farmers in Kenya, offering tips

on cow breeding, animal nutrition, milk production efficiency and gestation. These are perfect

examples of how domestic technology advances have helped Kenyans address real problems

affecting the country head on.

Looking ahead

So what will be next for the Silicon Savannah? Well, the advent of 5G technology, which is

expected to be rolled out in the next decade, will bring unprecedented speed to mobile on a

level similar to that of current high-performance optic fibre networks. Speeds of over 800Gbps -

the equivalent of downloading 33 HD movies in a single second ill e a er ate Ke as technological capabilities.

Perhaps most signifi a tl , 5Gs re olutio ar o pa t a te ae te h olog ill ea that antennae can be mounted on almost any structure, such as a house or telegraph pole, instead

of ulk asts. This ill help o e t the e tire ou tr fro Nairo is su ur s to rural Rift Valley villages.

Access to a 5G network will provide a major boost for innovative industries as well as business

in general. It will also help break down barriers, improving access to a higher proportion of the

population to the internet whilst boosting their educational opportunities and prospects.

Nigeria and South Africa have for a long time been the economic giants of Africa, particularly in

terms of natural resources, such as mining and oil refinery. By focusing on financial services and

telecommunications, Kenya has future-proofed itself by becoming the go-to African market for

the likely economic drivers of the next few decades. With a supportive government and a

young, tech-savvy population, as well as further innovation on the horizon, Kenya is well-placed

to o ti ue o its path to e o i g Afri as leadi g te h olog hu .

Tej Kohli is a technology entrepreneur and FinTech expert

http://tejkohli.com/

Why Kenya, Home to Africa's Silicon Valley, is set to be the Continent's Ultimate Tech Hub