Cran: ICT contributes 2.5% to Namibia's GDP

Namibia's Information and Communications Technology sector generated N$1.6 billion in telecommunications license revenue in the last quarter, while broadcasting licensees contributed nearly N$1 billion in the previous year, according to Helene Vosloo, the Communications Regulatory Authority of Namibia's (Cran's) executive for economics and market development.The ICT sector garnered N$1.2 billion in total investment last year and contributes 2.5% to the country's GDP in real terms, representing a significant portion of the national economy, Vosloo says.In spite of this, regulatory challenges are evergreen, particularly pertaining to foreign ownership requirements. Current legislation mandates that 51% of shareholding in ICT licenses must be Namibian-owned, though the Minister of ICT has the authority to waive this requirement.The sector faces measurement methodology issues, with officials noting that the Bank of Namibia and NSA use outdated voice-based metrics to calculate the sector's contribution to national accounts, despite voice technology being in decline.MOBILEMobile phone adoption has reached new levels, with approximately 2.6 million active SIM cards in circulation. Using the International Telecommunication Union's definition of active cards—those used within the last six months—this represents 86% of Namibia's population. Vosloo notes a decline in the number of active sim cards, sharing her theories for this occurence. "You will remember a few years ago it was 120%. So what happened here? Two thingshappened. The first is our operators changed their packages. So previously if you went onto Jiva or you went onto Aweh, and after three days your Aweh three gigs are gone. What do you do? You put in another sim card, you buy another Aweh and then you can use it again. But now the operators have changed their packages and you can recharge even if it is done after a day, which means that people now use less sim cards. And then, of course, what also helped is the fact that we did sim registration. So now all the skelms can't have sim cards anymore, hopefully, because now we can trace them."The government has recently redefined broadband standards, setting the minimum speed at 25 megabits per second. Vosloo describes this as fast enough to "watch movies and YouTube and play games all at the same time"."So you can have three devices and nothing will buffer," she says. Fiber connectivity has expanded dramatically from minimal coverage to 44,000 connections nationwide, with growth averaging 6-10% annually."When I started, fiber was something that we didn't know about. It was only the big guys that had fiber ... And it shows you that people need faster, more reliable quality internet," Vosloo says. Vosloo emphasized the broader economic implications of digital transformation beyond individuals who may benefit from digitalized government services."What we don't understand is if I have to stand in a queue at Natis for three hours, it is three hours of my productive time that is lost. That could have contributed to the growth and the economy of this country," Vosloo said.She highlights opportunities in the local app development market that are currently not exploited, questioning why there are so few Namibian apps available for utilization, describing it as "a huge industry that can be utilized."Vosloo identified key growth areas including data management, artificial intelligence, and Internet of Things (IoT) technologies as opportunities that could benefit both entrepreneurs and the entire country.REMOTE AREASCran is implemented their Universal Service Fund initiative earlier this year, rolling out nine towers to villages that have never had connectivity. These communities are expected to receive 4G connections by March next year.With allocated N$31 million to MTC to provide services, 21 educational and health institutions are expected to be connected to the internet for free for seven years with uncapped internet access.Addressing connectivity challenges in remote areas, Vosloo noted practical limitations: "It doesn't make sense to put up a tower in the middle of Etosha. What will happen? The elephant will come and the rub its back and then the tower is down ... You cannot put up a tower for a farmer and five farm worker families. It will never pay itself. So we have to look at other technologies to ensure that every Namibian will be connected and will be able to have a wonderful experience when they are connected," she says. Despite significant improvements in the affordability of data in recent years, a VAT disparity persists between prepaid and contract customers. Prepaid users, typically lower-income customers without fixed salaries or bank access, pay 15% VAT on services, while customers on fixed contracts do not pay this charge.Vosloo acknowledges the challenge of device affordability, noting that while not everyone needs premium smartphones, reliable and affordable devices are essential for widespread 4G adoption.BROADCASTINGDespite progress in telecommunications, broadcasting coverage reaches only 89% of the country, leaving some communities without access to broadcast services."Community broadcasters are a huge industry. It's not to make money. Broadcasting is not a money-making thing, it's a community-making thing," Vosloo noted, identifying community broadcasting as a significant opportunity.INFRASTRUCTUREPrivate sector investment remains substantial, with Namibia's newest mobile provider, Paratus, investing N$1.7 billion over nine years. Vosloo emphasizes that e-commerce opportunities extend beyond international platforms to local entrepreneurs, such as wood crafters in rural areas marketing products internationally via mobile phones.She concluded that new technologies create multiple opportunities: "New technologies allow for innovation, socio-economic development and investment. But it also creates opportunities to connect the unconnected, improve business processes, development of innovation hubs and fintech."– irene-mari@nmh-hub.com.na

Cran: ICT contributes 2.5% to Namibia's GDP

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Cran: ICT contributes 2.5% to Namibia's GDP

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