Trust: the new currency in a converged Africa

Convergence is the result of collaboration between two or more independent categories, usually spurred on by new technologies or new behaviours and a desire by the involved parties to create economic or social value. Convergence is a confluence of ideas and values from previously separate organizations who decide to break-down walls and build bridges with the primary objective of adding increased value to the most important stakeholder – the customer. Some companies may view it with suspicion whilst others view it as an opportunity for transformation. It can be driven by technological innovation, regulatory developments or the lack of it, or by a series of fundamental changes in consumer attitude.

Businesses across Africa (Media, Telecommunications, Software, Banks etc.) have come a long way since the early days of the 21st century and have evolved to become more suited to fundamental changes in consumer attitude. Convergence, and the idea of creating optimal value for the customer, has penetrated almost every sphere of society and redefined the very fabric of today’s world. The ripple effect of this phenomenon is apparent in the Nigerian business landscape; for example, in the convergence of telecommunications and internet services sub-sectors which has led to the creation of one of the largest ICT Industries in Africa, which now contributes 11% to the Nigerian GDP. Another successful convergence can be witnessed between telecommunications and banking which has seen the banking sector’s ability to innovate and improve the customer journey increase exponentially now that they can leverage the telecommunications operators’ systems and networks.

The emergence of an increasingly difficult economic environment, further underlines convergence as integral for firms wishing to remain profitable and successful in an environment recently characterized by cost reduction and improved efficiency. Preparing for convergence does not require building a research and development’s division, hiring only millennials, or increasing marketing budget for digital media. It’s about embracing a customer-centric mind-set and making your entire organization responsive to the customer journey.

The reality of technological and market convergence implies that existing policies relating to the ICT sector are in need of a critical review. A key requirement is the development of appropriate policies, as well as a legal and regulatory framework that fosters an enabling environment. Currently, there are various uncoordinated policies guiding different facets of the industry. The overall ICT policy framework of 2012 seeks to address additional issues in the sector such as local content development, especially where it concerns indigenous production of hardware. Nigeria is gradually beginning to experience the rise of its ICT sector to heights that were previously unbelievable; and the establishment of Yabacon Valley as one of Africa’s leading tech-hubs is a clear indication of such progress.

Kenya serves as a role model to Nigeria and many other African countries because of its robust regulatory framework, which promotes ICT integrated services within its economy. Additionally, the high availability of reliable ‘data’ facilitates development of convergence across all sectors spanning the country. According to the Bill and Melinda Gates Foundation, Kenyans using M-Pesa, a mobile phone-based money payments service, undertook more transactions in three years than the total number of worldwide remittance transfers recorded by the global money transfer agency, Western Union. For operators and investors alike the framework provided much-needed certainty and direction.

africapractice, a pan-African Strategic Communications Consultancy Group has developed a white paper outlining a number of critical issues that are impeding the growth of ICT in Nigeria as well as potential convergence occurring across different sectors. The most important of these impediments is “trust” and factors such as access to data, sharing of telecommunications infrastructure, and lack of enabling policies as well as poor broadband connectivity affect trust which is crucial for enabling the aforementioned industries to realize their maximum potential. Also featured, are recommendations for the development of a practical framework that can be leveraged by relevant stakeholders in the process of tackling key issues across Nigeria’s ICT sector.

Trust is indeed the most important factor in the process of establishing sustainable relationships amongst public and private sector stakeholders. A greater synergy between the public & private sector is crucial if we are to solidifying trust within the different elements in the Nigerian economic landscape.

Buchi Ajufo