ICT Policy Formulation and e-Strategy Development: A ... - un-apcict

that establish the basis for secure transactions over the Internet and use of wireless devices,
and facilitate the use of EDI and EFT transactions. These are the necessary building blocks for
e-commerce.
Smaller, and usually local, firms will need support to develop capacity to use ICTs and benefit
from e-commerce. Also needed are policies supporting entrepreneurs in the ICT industry in
their efforts to establish firms able to compete locally and abroad. Business incubators may be
useful in building the capacity to use generic e-business applications.
More importantly, they can help ICT firms establish themselves by providing logistic and
strategic support for business planning and for helping firms tap into networks of contacts
and expertise as well as new markets and venture capital.
Incubators can provide coaching and mentoring, some of which may come from investors
with the requisite experience and technical know-how, to help the firms establish themselves.
This may be easier to come by if efforts are exerted to attract world-class ICT companies and
TNCs.
Government policies should aim to support entrepreneurship, especially in the ICT sector. They
should help drive the demand side for ICT goods and services, especially PCs, peripherals and
related hardware and software, including wireless devices.
Promoting the use of ICTs and the development of the ICT industry will also be closely associated
with support for the private sector in general. Businesses need to first adopt sound business
practices and develop a sound business plan. Governments need to create conditions that
encourage the development of the private sector and recognize the importance of market
mechanisms that encourage open competition. For most businesses, ICTs are not ends in
themselves but tools to facilitate business processes.
For the ICT sector, policies should aim to strengthen the competitive and comparative
advantage of hardware and ICT service providers locally, regionally and internationally. Some
countries have policies favouring local companies over foreign-owned companies. Such policies
may be difficult to justify under current trading regimes and with the WTO because of their
discriminatory nature. Efforts to strengthen the capacity of local businesses, especially SMMEs,
are easier to justify.
Many countries have policies supporting and promoting SMMEs because of their potential to
create employment at the local level. This applies to all SMMEs, whether in the ICT sector or
not.
Incentives to develop demand for ICTs, especially for PCs and peripherals, need to be considered.
Many countries have dramatically reduced, if not eliminated, duties on the import of PCs and
peripherals. Other policies to encourage greater access to credit are also important to stimulate
demand from the public.
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