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Namibia

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The Private Sector Information, Computing and Communications Industry in Namibia

by Peter Millier

Chairperson of the Namibia Information Technology Association (NITA)

Peter Müller

Contents

  1. Types of industry and their information systems in Namibia
  2. The computer companies who support the Information System industry
  3. The communications industry which forms the backbone to the networking of information systems
  4. Some examples of up to date computerised information systems
  5. Some problems facing the industry
  6. Conclusion

I. Industries in the private (and parastatal) sector who use computer based information systems

1.1 A list of types of industry

At a guess 90% - 99% of companies use computerised information systems of one sort or another.

In general, the most up-to date systems are found where the battle for customers is toughest, because computerised Information Systems can enable that leading competitive edge (most of The Private Sector Information, Computing and Communications Industry in Namibiathe time, sometimes not - we have seen success stories in Namibia as well as expensive failures).

Some Examples:

Not strictly private, but almost and often run for shareholders

1.2 Software applications used by the Companies above

1.3 The hardware

1.4 Downsizing

Mainframe and other old systems are being phased out in a big way at the moment - often a slow and painful process - this has been going on for 6 to 8 years and will continue for a while.

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II. The computer companies who supply computing hardware and software services

There are three categories:

2.1 The Namibian companies

Suppliers of PCs and peripherals range from relatively substantial companies down to companies who assemble PCs in garages. These companies and shops do not differ much from counterparts anywhere in the world.

The business atmosphere is very competitive, so it is a tough world to be in. Only the fittest survive.

These companies can offer first line support for common problems - fixing PCs, making some of the common software packages work for customers, supplying consumables, offering training in literacy, word-processing, spreadsheets etc.

2.2 The South African connection

The companies using Information Systems mentioned above, do much business with South African Information Technology hardware and software service providers. After Namibia, the second line of support is usually South Africa.

Some South African companies are taking it further by investing here. Many have offices and staff here.

A number of Namibian companies have strategic alliances with large South African companies, so that they are able to offer wider support if required.

2.3 The big international companies

These have small satellite offices here, usually run from South African HQs, or they set up temporary offices for the duration of a project, or they operate through agents.

The highly specialised computer programs, the hardware and the skills they have to offer do not warrant full-time staff here. Once they have installed a system, it is a completed project, and Namibians have to take over the operations.

Maintenance and support is done remotely using help over the phone, dial-up links or X.25.

If a problem cannot be solved remotely, then people can and do fly in from almost anywhere in the world for a day or two to solve the problem.

The Private Sector Information, Computing and Communications Industry in Namibia

Many companies are working here on downsizing projects or new projects at this very moment.

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III. The private sector communications industry

This sector is dominated by Telecom Namibia and MTC.

Smaller companies offering services in the communications industry are usually linked to more powerful companies in South Africa or internationally.

These are for instance the Internet Service Providers, companies like SIEMENS, Alcatel and the like who have offices and staff here selling telecommunications equipment.

A more open market here is being called for in many quarters.

Telecom Namibia and MTC are intimately associated with the 'explosion' of data processing and information systems in Namibia, in that they are introducing new communications technology all the time. The technology is enabling rapid data transfer from one end of the country to the other.

Thanks to this, many companies have WANs spanning Namibia from North to South, East to West. The latest product, and a very successful one at that, is a managed bandwidth system called digicon, where customers can rent communication lines to a bandwidth which suits their data transfer requirements between all major towns in Namibia.

Namibia is also well connected to the outside world. Many large South African companies (Banks, retailers, wholesalers etc.) run branches here which are linked to their big systems in South Africa. These WANs often span the entire sub-continent or even the world.

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IV. Examples

4.1. At least one of the large clothing retailers here has a system whereby the manager of a branch downloads sales figures from POS terminals for the morning into the host computer in South Africa, and shortly afterwards gets a report detailing takings and profit for the morning. At the end of the day, the same report is done for the day's taking and profit.

4.2. MTC has introduced cell phone technology so that an order can for instance be typed into a laptop computer in Oshakati which is connected by cellphone and modem to an order entry system in Windhoek, Johannesburg or New York for argument sake. The order can be processed, confirmed and picked at the warehouse in Windhoek, Johannesburg or New York immediately and be despatched that same day. The customer is handed a delivery note at the same time.

4.3. One bank in Namibia, if not more, offer internet banking facilities. Money can be transferred between accounts, bills can be paid and a host of other transactions performed from home or office.

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V. Skills, prospects and human resource issues

Generally software in Namibia is bought off the shelf. There is very little work for programmers, although there are a few companies who develop their own programs or have them developed by local software houses.

The skills required in Namibia are therefore in:

There are two levels of skilled people found in Namibia:

5.1 Senior personnel

Senior positions require much experience, a certain maturity and a tremendous sense of responsibility. This is because the data can usually be translated directly into dollars and cents, often millions. Companies cannot risk inexperience in these jobs.

Personnel is hard to come by and there is much poaching between companies. The government especially finds itself loosing its most capable people as soon as they have acquired some experience. Local talent is easily lured to greener pastures in South Africa or abroad.

Many positions in Namibia, both in the private and public sector, are filled by imports from South Africa or Europe, America, the pacific rim countries, other African countries etc.

5.2 The up and coming youngsters

There is much potential here:

All top schools, primary and secondary in Namibia teach computing skills. IGCSE and HIGCSE computer studies is offered. More and more schools are offering computer studies including previously disadvantaged schools, although the issue of teachers for this subject is of course a serious problem. Support from private business and government is called for.

Both UNAM and the Polytechnic offer good local programs, although again there is much scope for improvement and support of these Information Technology schools.

Both the private and public sector could do much more to pro actively support the source from which their future human resource will come. It is an area crying out for long term win:win solutions.

The course at the polytechnic was initiated with funding from private sector companies in Namibia who do much data processing. It has been running for eight or nine years now. The course at UNAM (and its predecessor) has been running for about the same time. Both have produced success stories and we have been seeing the first graduates from these courses coming through to successful managerial levels since 1996.

People have also come back home from abroad with Computing skills and qualifications thanks to numerous programs enabling study. Information Technology seems a very popular career with young Namibians.

If Namibian companies and the Government provided more support to Information Technology education, then we could easily Namibianise Information Technology human resource and knock affirmative action on the head at the same time.

1 personally believe this to be of major strategic importance and worthy of attention at this conference.

5.3 Jobs Namibians will not be likely to do to make a living in Namibia

Much expertise has to be bought in at very expensive consultants rates, but this is almost unavoidable because the installers of specialised, off the shelf systems, are a special breed of international gypsy. They are so specialised in their field, that if a Namibian was to specialise to such an extent, he or she would never have enough work to do here, but would be forced to become an international gypsy as well.

They work here for a few days, a few weeks, sometimes a few months, occasionally years usually a quick in and out and if not, a tremendous financial burden on the Namibian economy.

You don't want to keep them here for too long because they are so incredibly expensive. The key to using this resource effectively is good Namibian management.

Once the experts are gone, they keep in touch with the systems they have installed by helping Namibians on the phone, by using the internet, or by dialling directly into the systems using X.25.

Three points to note here:

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VI. Conclusion

I do not have statistics, but would not be surprised if Namibia is amongst the African countries with the highest per capita penetration of information systems. This is for various reasons:

If new information systems are introduced, Namibian companies on the whole buy the newest technology available.

We do not have the same foreign currency problems which many other African countries have. We can buy the latest systems and can afford them too because they make businesses more profitable and competitive.

1 do not have evidence, but believe that the shortage of experienced human resource leads to much inefficiency. Information Technology professionals are usually so busy in Namibia, they have little time to network, to co-operate, to spend time on the broader issues - Such as thinking about the long term effects some support to the Polytechnic and UNAM would have on solving human resource problems.

Every company does its own thing. If we shared experience, skills and resources we could probably apply this latest technology even more efficiently.

The human resource problem also influences local service levels. In Namibia, these are not of a particularly high quality. There is much criticism, especially by corporate companies, about the levels and standards of service offered by local Information System service providers.

The down side in information systems in Namibia seems therefore to be a human resource issue, the up-side is that we are surging ahead.

Some very exciting projects are on the go right now - we are seeing new and better systems being introduced daily.

I look forward to hearing what Mrs. Hamutenya has to say next, because our Government is one of the biggest processors of data in the country and has a number of downsizing projects running at the same time.

I thank you.

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