Clear opportunity
• Chapter summary
The ICT chapter in Mozambique represents an intriguing look into the future of a relatively underdeveloped country, one that is showing a strong determination to catch up with the developed world.
Mozambique’s ICT scene is undoubtedly lagging in many parameters. The media landscape, including TV stations, radios, and newspapers, is dominated by state or religious outlets that leave little space for independently owned channels. Mozambique has a low internet penetration rate of 20.9% of the population, compared to the global average of 58.7%. And those with access pay more as the average telecoms package in Mozambique is the most expensive in the region.
While these are clear indicators of the challenges that lie ahead, this data should not overshadow the impressive growth the sector has witnessed in the last two decades. Telecoms coverage has now reached over 85% of the population, compared to 65% in 2014, and there is growing competition over 4G services. According to Jerry Mobbs, CEO of Vodacom Mozambique, the telecoms sector is vibrant, the competition is formidable, services keep improving, and prices are going down.
The expansion of coverage is also key to bridge the gap in financial inclusion and energy access to reach previously unserved portions of the population. With the support of the central bank and the Incubator Sandbox initiative, fintech startups are playing a pivotal role in this arena, mirroring success stories in Kenya and Nigeria.
With regards to the IT space, our interviews shed light on a few trends. Digitalization is a word that most companies are cautious to use. The private sector is still lacking awareness about the need and the advantages of basic digital solutions such as the cloud, as Carlos Babo, Managing Director of Dataserv, explained to us. On the public-sector side, Joaquim Tobias Dai, Executive Director of Asseco PST, has been trying to lobby for the implementation of e-governance solutions to boost the efficiency and transparency of governmental processes. Important progress has been made with the creation of the electronic portal of the Tax Authority (e-Tributação) and the opening of the electronic single window to facilitate trade. But Mozambican companies hope to see more public resources invested in e-governance.
The finance sector and banks are regularly mentioned as the preferred client for Mozambican IT companies, due to the growing demand for innovative IT solutions, particularly cybersecurity solutions. Moreover, in 2019, the central bank introduced regulations for all local and foreign banks in Mozambique to execute in-country data backup within a 15-km range of their headquarters. This represented a precious opportunity that the IT sector was quick to grasp.
Finally, the crisis brought about by the pandemic has opened an interesting window of opportunity for IT companies, in a country that had virtually no previous experience with remote working. As Ricardo Parreira, CEO of PHC Software, told us, the IT sector has succeeded in keeping Mozambican businesses up and working, so the sector is bound to see vibrant growth in the future. There is no going back, only forward. ✖