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Better Connected, Smarter Cities Attract more Investment

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Blurb: With more than 40 percent of Africa’s population living in urban areas, Africa is embracing urbanization and the opportunities and challenges that come with it. Smarter cities are more capable of attracting FDI. For a country and its cells, “Cities”, there is also Maslow-like hierarchy of digital needs. Security assurance is the basic needs.

 

ICT has an important role to play in attracting capital and investment by increasing efficiency and cutting costs, not only for a country but also at a city-level. However, how closely is ICT and investment correlated to each other and what is the implications for Africa, home to most of the hundreds of millions of new city dwellers expected by 2050?

 

A report launched recently by UN Habitat (‘The State of African Cities 2018: The geography of African Investment’) explains how African cities can replicate those of East Asia and attract foreign direct investment (FDI) in order to develop sustainably.

 

The report shows Africa needs to seize a more prominent position in the world economy by enhancing its accessibility, connectivity, markets and urban attractiveness. It finds “reliable mobile networks and internet access attract knowledge-based FDI”.

 

As a leading company in the ICT industry, Huawei fully agrees with many of the report findings include that firstly, improving ICT infrastructure is critical to attracting FDI, whilst secondly, the ICT industry itself is also a crucial sector for FDI. For the latter finding, the report highlights that ICT sector FDI offers the highest growth rates and highest number of direct jobs along with manufacturing, and that the two are closely linked.

 

Connectivity provided by communications network and internet has become as important as water and electricity. The State of African Cities Report notes inward FDI into Africa correlates positively with large urban populations (markets), mobile phone subscriptions, internet bandwidth and full electricity supply, “These factors combined with high-quality ICT and lower transaction costs enhance FDI attraction for multinationals.” This parallels Huawei’s own experiences in Africa over the last twenty years.

 

A better ICT environment can better attract knowledge-based FDI. It starts with having reliable mobile networks and internet access. Internet access itself is not enough though. Huawei believes that in Africa connectivity brought by the network of communication towers and fibre is like the “soil”, which provides the fertile ground for important value-adding crops, which in this case are services including Safe City, E-government, E-education, E-health, E-agriculture and so on that enhance public social services delivery and better allocation of resources. We must keep improving the soil fertility, or the quality, access and speed of the connectivity, so the “crops” can grow successfully improving the ease of doing business and livelihoods.

With more than 40 percent of Africa’s population living in urban areas, Africa is embracing urbanization and the opportunities and challenges that come with it. On the one hand, African countries are gaining agglomeration and economy of scale benefits, but on the other hand they must manage “big city diseases” e.g. congestion, pollution, and even some non-traditional security threats such as financial security and terrorism.

 

The “smart city” concept is a new critical phenomenon in urban development, especially when cities want to expand their global reach. Smarter cities, according to the report’s studies, are more capable of attracting FDI from more and further destinations. City administrations can therefore set up Smart Procurement Agencies and Competition Commissions, for branding their city as an attractive “smart” investment destination.

 

How to make a city smarter?

First, construction of smart cities is a giant system that interacts across systems and is a “system of systems”. It requires coordination of cross-domain coordination through the top-level design, including setting goals, priorities, and implementation paths. The top-level design is also essential rather than optional given that cities are paying more attention to civic experiences, technological frameworks, new technology references, and construction models, In addition to projects and investments.

 

Second, taking a two-step approach starting with Safe City and then moving to Smart City. According to Maslow’s hierarchy of needs, safety and security together with food and water are basic needs for all human beings. For a country and its cells, “Cities”, there is also Maslow-like hierarchy of digital needs. Similarly, security assurance is the basic needs for a country or a city. It lays a solid foundation for a competitive nation and a dynamic city.

 

Third, to grow the nerve system inside and outside the body. Huawei sees a city as a living organism, which is powered by a nervous system comprises a “brain” (the control center) and “nerves” (the network and sensors). Leveraging leading new ICT such as cloud computing, IoT and AI, Huawei is committed to creating a strong nervous system that powers Smart Cities. More importantly, as the report finds, to establish a national, regional and international network of dedicated smart cities that collaborate and share beneficial information and data.

 

The report is well-timed and chimes with Huawei’s own experiences from our work across the world, including in African countries. With Huawei’s vision to bring digital to every person, home and organization for a fully connected, intelligent world, we fully support the recommendations in the report that local policy makers should embrace the digital revolution, develop ICT skills and invest more in regional infrastructure, both physical and ICT, to make our cities safer, our lives better and our future smarter.

 


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Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

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Airtel Boosts NIPR Public Relations Week with Onsite Unlimited Data Connection

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Telecommunications service provider, Airtel Nigeria has collaborated with the Nigeria Institute of Public Relations (NIPR) to provide with unlimited internet access at the institute’s inaugural edition of the Nigeria Public Relations Week.

The trailblazing event themed ‘Leveraging Public Relations as a Critical Asset for Nigeria’s Economic and Reputation Renaissance’ is set to run from Monday, April 22nd to Friday, April 26th, 2024, and will welcome thousands of delegates across Nigeria to the prestigious June 12 Cultural Centre, nestled in the heart of Abeokuta, the Ogun State capital.

Speaking on the strategic collaboration, Femi Adeniran, Director, Corporate Communications and CSR, Airtel Nigeria, expressed enthusiasm about the partnership, stating, “Airtel is proud to support the Nigeria Institute of Public Relations in its endeavor to advance the field of public relations.

“The relevance of public relations practice in Nigeria cannot be overstated, as it plays a vital role in shaping perceptions, managing reputations, and influencing public opinion. Hence, our support is a demonstration of our commitment to empowering individuals and organizations with innovative solutions that drive progress and create an enabling society.”

According to NIPR, through the PRWeek Organizing \Committee Chairman, Mr Yomi Badejo Okusanya, the NPRW will gather over 2,000 experts in the fields of economics, PR, and nation-building to discuss strategies for effectively communicating government policies and initiatives to the public.

Other activities at the NPRW will include conferences, the annual general meeting, workshops, induction of new members, breakout sessions with students as well as traditional rulers and a tour of some legacy projects in Ogun state.

With Airtel’s provision of onsite unlimited data connection, attendees and participants can enjoy unparalleled access to online resources, real-time updates, and interactive engagements throughout the duration of the event. This will significantly support the exchange of ideas, foster networking opportunities, and elevate the overall experience for all stakeholders involved.

Airtel Nigeria remains committed to offering unwavering support for initiatives aimed at driving innovation, collaboration, and nation-building.


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World Earth Day: Kuda Partners with Wecyclers to Clean up Communities in Lagos

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In a landmark partnership aimed at promoting sustainable waste management practices, Kuda Microfinance Bank and Wecyclers collaborated to commemorate World Earth Day on April 22, 2024. The collaboration featured a series of impactful activities designed to raise awareness and foster environmental stewardship.

The activities on the day included a webinar session facilitated by renowned expert in environmental management and head of ESG at Wecyclers, Omobolanle Olowu, during which she shared startling data on plastic pollution in Nigeria. She also discussed the importance of proper waste management and its significance in preserving the planet for future generations, providing valuable insights and practical tips on reducing, reusing, and recycling waste.

In a published study on plastic pollution in Nigeria, the country ranked ninth globally for plastic pollution with an estimated 2.5 million tons of plastic waste generated annually and less than 12% of those waste materials recycled.

Also on the day, Kuda staff volunteered for an environmental cleanup exercise, during which they took to parts of Apapa Road, Ebute Metta to empty gutters and collect plastics and other recyclable materials for recycling.

In addition, volunteers from Kuda gained firsthand knowledge of innovative waste management solutions during a guided tour of Wecyclers’ facility in Ebute Metta. The tour showcased Wecyclers’ pioneering efforts in recycling and waste upcycling, demonstrating how technology can be leveraged to address environmental challenges effectively.

Speaking about the collaboration, Emmanuel Femi-Adejobi, Senior Brand Manager at Kuda, expressed enthusiasm for the partnership’s potential to drive positive change. “We [Kuda] are committed to promoting sustainability and environmental consciousness. We also believe that our responsibility is not only to our customers and other stakeholders but also the environment that we all share. Partnering with Wecyclers allows us to inspire communities to adopt eco-friendly practices,” he said.

“Our initiatives towards achieving a sustainable environment and achieving a green earth goes beyond just recycling. We aim to inspire a broader commitment to waste minimization, reusing materials and proper sustainable waste management. As we commemorate World Earth Day, we encourage our staff, customers and general public as a whole to embrace actions that promote a green, safe earth for all,” he added.

Likewise, Esther Chibueyin Fagbo, Head, Human Resources and Partnerships at Wecyclers, emphasised the importance of collective action in addressing environmental issues. “It is very important for organisations to collaborate on initiatives that help save the environment. We are excited about this partnership because such partnerships are crucial to creating awareness and educating people about the impact of plastic waste on the planet and how they can contribute to a change that we all deserve.”

Kuda’s collaboration with Wecyclers emphasises its commitment to sustainability and championing proactive efforts through education, engagement and action to create an environmentally conscious population and a sustainable tomorrow.


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Defending the Foundations for Connectivity

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By Engr. Gbenga Adebayo

In 2001, when the first GSM call was made in Nigeria, how many of us would have envisaged the digital world that we live in today?

Defending the Foundations for Connectivity

Gbenga Adebay, chairman, ALTON

The pace of growth and the rate of adoption of telecoms solutions in Nigeria has been revolutionary. It is a globally acknowledged case study that we should be proud of and a clear demonstration of what can be achieved.

Almost all of us today are reliant on the network connectivity that it has enabled in different shapes and forms. From the simple need to communicate with loved ones, to the digital platforms that enable our access to and consumption of entertainment, financial products and other critical services.

Our reliance on these systems is becoming more and more acute, whether it is citizens, governments, or corporations.

System downtime is increasingly disruptive and offline manual redundancies are often in the advanced stages of being phased out. The pace of this transition is not slowing down. With the core infrastructure in place, innovation is driving the exponential growth of services that ride on it. From the fully adopted social media that has changed the way we interact, to the emerging Artificial Intelligence (AI) revolution.

While this innovation is enabling exciting new possibilities, there is a tendency to focus on those opportunities, to the detriment of the core infrastructure on which it rides.

It is imperative that we retain a focus on the optimisation of that infrastructure and enable continued investment in its development.

We have seen how the transition from 2G, through to 3G, 4G and 5G have each enabled the development of more and more sophisticated solutions.

The continued development of core infrastructure has to be sustainable, and over the last few months we have begun to see the challenges that the operators that provide it are facing.

Both MTN and Airtel have declared significant foreign exchange (FX) losses in Nigeria, and the stress is not linked to them alone.

The entire ecosystem is battling with a range of challenges that must be addressed. If we fail to do so, the downstream impact on innovation will be severe. Telecoms infrastructure requires a base level of investment to maintain its current capabilities, and significant additional investment to expand and grow. It is capital intensive and that capital has to be generated through sustainable business models.

At the heart of the challenge the industry faces is the issue of rising costs.

Recent financial losses are directly linked to the cost of operating towers that rely on inputs like diesel, which have increased significantly as the Naira has depreciated.

The provisions large telecom companies have had to make, and the consequent losses and impact on their reserves is a red flag.

It tells us that business as usual is not sustainable. If we continue as we are, then those companies will struggle to continue to invest in and maintain existing services.

But those costs are not the only challenge. General cost inflation, multiple taxation, regular and damaging vandalisation of infrastructure and the costs associated with regulatory compliance all help contribute to the high cost of operations.

We cannot continue to follow a path that asks those companies to simply accept those rising costs. It is no longer sustainable, and we have reached an inflection point.

This is a critical moment for the industry.

How we approach and resolve it will define the future of Nigeria’s digital economy.

If you want to be able to enjoy the benefits that digitisation brings. If we want the infrastructure that enables AI and helps us drive growth, then we must take action now.

Cost-reflective tariffs, like it or not, are simply non-negotiable. We have seen the impact of price controls in other segments of the economy, like power.

If providers cannot operate sustainable business models, then they stop investing. When that happens, the existing infrastructure starts to crumble.

For power, a consumer can choose to take ownership of the solution by buying a generator, or a solar panel.

For fuel, the government can step in as the provider of last resort and manage a subsidy regime that mitigates the impact on the population. Those options are not available in the telecoms sector. There is no self-help solution.

We fully understand and appreciate the financial stress that Nigerians are experiencing today. The cost of living is the single most significant factor in most people’s daily lives.

But those people are still able to enjoy the benefits that connectivity brings, at the price they paid before these challenges became so acute.

Imagine a future in which the gains of the last twenty years are reversed. Nigeria, and Nigerians simply cannot afford it. The pain that we would feel under those circumstances would be exponentially worse.

We need to find a long-term, sustainable and manageable solution to this problem. Prices will need to rise, but action needs to be taken in a measured way, through sustainable conversations and partnership with the government. It is time to address this head on.

 

Engr. Gbenga Adebayo is chairman, Association of Licensed Telecom Operators of Nigeria (ALTON).


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