Start-up program for Developing Countries

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Developing countries are trying to find out the opportunities from making IT based industrial parks. Last year, Techrux Team mentioned on the SAFE BODA project in Uganda. Some sectors are being made by the government oriented drive.

Then how are these countries are being approached to make up the ICT industry development? Due to the articles and MDB programmes, two ways can be deducted.

1. Attracting BPO(Business process outsourcing)
The simplified business like call center operation is the starting stage function for IT based industrial parks. Due to the raise of the HR costs in India, the BPO beneficients are looking for other countries for the outsourcing such as Ghana. African countries are attracting BPOs from English and French speaking countries. This can be another factor for job creation. However the barrier to enter this market is low. Therefore this can occur some chicken games among the developing countries by lowing BPO provision price.

2. Making up the government or MDB driven start-ups
As the ICT support have been done via private sectors from global sized enterprises such as Microsoft or Google, some supports were not sustainable. For instance, Ugandan start-ups got the support from an IT firm that had some initial problems. When the financial problem faced to the company, the IT support were not sustainable.

This leads to the government and/or MDB(e.g. World Bank Group, AfDB) driven start-up programs. However, the applications were not made based on the market demand but government policy driven factors. Therefore the applications are not sustainable in some point of view.

One of the government in MENA was trying to deploy ICT parks for start-ups. However due to the political factors the parliament of the government stopped the program with MDB.

Internet space seems to be the fast track to catch up developed countries from the perspective of developing countries. However, the demand and the sustainability should be solved most of all.

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