Intelligent CIO Africa Issue 07 | Page 40

COUNTRY FOCUS: MOROCCO likelihood of scale among locally developed companies. Utilisation and locally developed content has not yet been maximised as the majority of Moroccans are still adapting to using technology for more than just checking basic email and making phone calls. There is an opportunity for further development in content creation in Morocco to boost web presence and content tailored for domestic and regional consumption. Morocco could also take strides to serve as a continental leader in ICT through knowledge sharing and support of other African markets. There is an opportunity for Morocco to do more to share knowledge beyond north Africa while offering its companies access to new customers beyond its borders. Morocco’s ICT industry In Morocco, the Government has created two different public bodies along with an ICT federation to facilitate development, research and legislature in the sector. The Moroccan Telecommunications Regulatory Agency is in charge of granting telecommunication licences, implementing ICT framework and supporting development and research in the sector. Although not solely created for the ICT sector, the Ministry of Finances and Privatisation plays a large role in the ICT sector by preparing tax and finance law to aid the ICT sector as well as to create value added services in the field of eGovernment. The local ICT sector in Morocco is largely concentrated in the outsourcing BPO, advisory, and infrastructure space though there is a concentration of content and solutions developers. A few hundred technology and BPO focused companies are operating from technology complexes in Casablanca and Rabat, and additional complexes around the country are in “Analytic technologies are clearly gaining traction amongst IDC surveyed organisations.” development stages. In Morocco, domestically developed ICT companies benefit from high penetration of technology, and strong public-private sector alignment on technology. While Morocco certainly faces its share of challenges on the technology front, there is an opportunity for Morocco to leapfrog to become an international ICT leader with support from external organisations. The success of Moroccan ICT companies has hinged on the Moroccan government’s dedication to expanding the ICT industry via various initiatives: launching incubators such as the Casablanca Technopark and Ifram University to host ICT companies and creating free trade zones with tax breaks and legal guarantees to encourage ICT development. This demand has led to a high quality of phone and Internet service at affordable prices with Internet penetration nearing 50%, mobile penetration eclipsing 100%, and the average cost of broadband ranging from $15 to $30 per month. Further, the Moroccan government’s action to reduce trade restrictions for IT equipment has helped to lower prices for enterprise grade networking hardware and retail devices. To become a global hub, Morocco cannot sequester itself from continental exposure; it must open knowledge and economic pathways into sub-Saharan Africa and the world. One way to do this is by hosting international ICT symposiums and engagements. The country also needs to focus on becoming a research and development destination and unlock some of the value hidden in its universities. To achieve this, the country should borrow best practices from countries like Israel, which was able to boost its research capabilities in part by loosening constraints on the commercialisation of technology developed in universities, by offering professors a greater share of any realised profits. Some of the barriers to the growth of the ICT industry include limited exposure across sub-Saharan Africa, lack of commercial research and development, lack of exposure of top technology talent to non-Africa innovation hubs, and limited utilisation of technology by broad population beyond basic services. Mobile and enterprise trends Africa’s mobile phone market started 2017 off with a drastic quarter-on-quarter decline according to IDC. The prime driver of this downturn was a stark –17.6% decline in the smartphone segment. When viewed year-on-year, the overall mobile market was up 8.4%, primarily due to feature phone shipments. Feature phones have now been rising as a proportion of the total market for more than a year, which 40 INTELLIGENTCIO www.intelligentcio.com