23.06.2016 Views

CASE STUDIES FROM AFRICA

30769-doc-services_exports_for_growth_and_development_africa

30769-doc-services_exports_for_growth_and_development_africa

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

software; system integration; computer support services; specification engineering; application<br />

design, testing, and maintenance; and content management.<br />

In 2012, a quarter of ARC’s domestically generated income came from the sale of services to the<br />

financial sector. About a fifth of its total income in 2012 came from exports. Sub-Saharan Africa<br />

accounted for approximately 75% of these exports, with Europe and Asia together representing the<br />

other 25%. The services sold by ARC are largely delivered electronically—via email and the<br />

Internet. This mode of supply accounted for approximately 90% of its export earnings. The presence<br />

of a subsidiary in Mali and the temporary movement of its staff to supply services abroad<br />

represented 10% of its export earnings.<br />

ARC faces several competitors in the domestic market and saw a decline in its customer base in<br />

2012. The company employed 30 permanent professionals in 2012. The most senior ARC manager<br />

has 20 years’ experience in ITS in Senegal and 3 years abroad. He has an engineering degree<br />

obtained abroad.<br />

FINETECH<br />

FINETECH is a limited liability company (LLC) with 88% of its capital owned and controlled by<br />

Senegalese partners. It has only one facility in Senegal and started its activities in 2009. FINETECH<br />

currently provides software development and implementation services; data processing and<br />

database services; integration of enterprise applications; enterprise security; application software;<br />

system integration; computer support services; specification engineering; application design,<br />

testing, and maintenance; and content management. FINETECH also conducts back-office activities<br />

in the form of financial processing (data and financial information processing and management),<br />

but this represents less than 1% of its income.<br />

In 2012, three quarters of FINETECH’s domestically generated income came from the sale of<br />

services to the financial sector, with the public sector accounting for the remaining quarter.<br />

FINETECH’s activities, however, are primarily export based: 75% of its revenues were derived from<br />

sales abroad; 90% of these customers are based in West and Central Africa. Morocco, Tunisia, and<br />

France accounted for 10% of its export markets. Export earnings from cross-border supply<br />

accounted for only 20%, while 80% was generated by the temporary movement of its staff to supply<br />

services abroad.<br />

FINETECH faces several competitors in the domestic market. In 2012 it employed 20 permanent<br />

professionals. The most senior executive at FINETECH has 16 years’ experience in ITS in Senegal,<br />

with a computer science degree obtained in Dakar.<br />

2SI<br />

2SI is an LLC with 100% of its capital owned and controlled by Senegalese partners. It began<br />

operations in 2001 and has two facilities in Senegal. 2SI currently provides development and<br />

implementation of software; data processing and database services; web services; hosting of web<br />

and application service providers; integration of business applications; application software;<br />

systems integration; ICT support services; specification engineering; application design, testing, and<br />

maintenance; and content management.<br />

In 2012, 2SI had three main groups of customers: multinational companies operating in Senegal<br />

(including banks), the government, and public enterprises. Approximately 60% of 2SI’s earnings are<br />

generated through exports, with the main markets being a dozen West African countries.<br />

172

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!