February 2006 - The first forum on Incubation in MENA Region, organized by InfoDev and Casablanca's Technopark ended on February 3rd, 2006. The recommendations lead to the launch of a regional incubators network. Academicians, researchers, bankers, incubator managers, technoparc managers, as well as policy makers from education, industry, science and technology and/or ICT ministries participated to this event. Twelve MENA countries participated: Algeria, Bahrain, Egypt, Iran, Jordan, Kuwait, Lebanon, Morocco, Palestine, Saudi Arabia, Tunisia, and Yemen. Representatives from Mauritania and Senegal also participated to the Forum. The InfoDev incubator initiative, launched in 2002, aims at fostering entrepreneurship and private sector development in developing countries through facilitating, by way of incubation process, the emergence and development of successful and profitable ICT-enabled SMEs. InfoDev has a global incubator network including 43 incubators as of today, of which 3 are in the MENA region.
Objectives
The MENA workshop’s objective was to provide a platform for sharing and learning on the regional challenges and opportunities related to innovation and entrepreneurship development, based on sharing incubation and innovation experiences at the country level (enabling policies), enterprise level (incubator experience), micro level (presentations from incubated SMEs and technoparc managers); as well as fostering the first dialogue of its kind in a region where innovation, entrepreneurship and change need to become part of the core values in order to help the private sector realize its potential for growth and development. The conference allowed to explore and get some recommendations on the most urgent challenges the regional entrepreneurs in ICT service sector are facing, such as the financing gap (what type, at what stage of the company’s life cycle, debt/investment instrument, etc.); the targeted markets and channels, the HR skills and the cultural shift needed at all levels of society to create and retain entrepreneurs.
The conference enabled a fruitful discussion on the impact and limitations of government sponsored programs to foster ICT sector and ICT innovation through the creation of large projects such technoparcs, all housing within them business/ICT incubators. The relation and dependencies between incubators, technoparcs, and institutes of higher learning has been explored; and also the procurement reform the donors community could undergo to enable Southern SMEs to compete and eventually win some donor funded contracts in ICT sector; and finally, the collectively discussed creation of the regional incubation network, and the way forward.
The main interventions
Theodore Ahlers Country Director of Maghreb countries at the World Bank, emphasized on the World Bank developmental objectives in the region, partnerships, urgency of job creation, and importance of environment (business climate, good governance, relevant education) for private sector development.Abderrafih Hanouf, Technopark's Director, introduced the audience to the Technopark, its progress and achievements (Technopark hosts around 150 ICT SMEs and an incubator), and gave a brief summary of the incubator project.
Vivek Chaudry, the task team leader for Innovation and Entrepreneurship at InfoDev,
introduced the InfoDev incubator program, and its outcome as of today. He summarized the overall state of incubation, describing global trends, impact of incubation, and what had been learnt so far from the incubation experience at InfoDev.
The agenda started with the private sector view of incubation, chaired by Mr. Bendidi, ONA’s CEO. Discussion revolved around: (1) creating the “alchimie” between entrepreneurs, market, channels and products to create innovative companies, (2) expanding their operations to other countries, preferably in a “knowledge corridor”, such as that provided by a technoparc or an industrial zone with critical mass of ICT companies and ICT learning institutes, (3) the need to have a predictable regulatory framework, governance and HR competences.
Some representatives of companies also notice a large pent-up demand in the region for networking and telecommunications equipment, software and services, local content, storage and security services as well as training and business process re-engineering.Recommendations
Financing gap
In the session on financing gap, economist consultants, commissioned by InfoDev to study the financing gap for ICT innovators in 12 countries, presented the preliminary results, especially related to Morocco. Some speakers explained their deal flow, terms, participation policy, exit strategy and current experience in the countries discussed. The discussion revolved then around the financing gap: Where can start-ups in ICT sectors get some funding investments of smaller scale, the need to create a seed fund and to improve microfinance mechanisms in the region.
The conclusion was that the SMEs financing often clashes to "systemic obstacles" and that the recourse to the capital-amorçage et au capital-risque is "low and marginal". Consequently, InfoDev decided to launch a study concerning this aspect. This study would highlight the check to the capital risque development and would lead to concrete propositions which could be financed by InfoDev or its international donors.
InfoDev has decided to launch a study on the financial gap in MENA Region. This study will highlight the factors that would inhibit the capital risk development in the region and also will result to concrete propositions that are financed by InfoDev or its international donors.
Incubation network
The participants recognized the need to work as a network in order to share the incubation best practices. It will also permit them to be inspired of the actions of one another.
The incubators' network is actually on conception. It will gather, at a first step, the participants at the conference, and will be broadened to the whole MENA incubators and everyone who will be interested. Technopoles
Technopoles should offer to the tenants a top of the line ICT infrastructure, including affordable video conferencing and broadband access; a good organizational structure in terms of facilities and location of experts in marketing, sales, legal etc; a strategic collocation or proximity of some ICT companies that fit the industry cluster developed in the park, and very committed leadership Government programs What is worth retaining in terms of pro-ICT, pro-innovation government programs is to focus on an "access for all" (in particular access to Internet including PC, broadband connection and training); on trade facilitation (simplifying export and import procedures), on education of a skilled and entrepreneurial ICT workforce (upgrade teachers’ skills, increase budget and staffing for research, create entrepreneurs’ clubs); on an application of a industrial policy consisting in creating technoparcs and promoting these to multinational ICT companies; on a flexible financial sector and a regulatory framework adapted to an ICT culture, and a pro-active government programs focusing on content creation for local conditions such as e-government. |
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