TRIP REPORT
Uganda September 21 to 27, 1996

Uganda Mission Strategic Objective 1

The AfricaLink Advisor was requested by the Uganda Mission to assist with the Mission's strategic planning process. The strategic analysis prepared during four days in Uganda is presented in Appendix I of this report. A longer first draft of the analysis was delivered to Jim Dunn, as it addressed specific additional questions he raised beyond those required by the SO Core Team. This is presented in Appendix II of this report.

Persons Visited

• USAID/Kampala: Greg Farino, Patrick Fine, Jim Gohare, Bruno Komakech, Pete Scott
• TDY Strategic Analysis Team: Joe Carvalho, Jerry Brown, Alan Lessik
• FEWS: Rob Rose
• IDEA Project: Clive Drew, David ?
• Uganda Investment Authority: Angela, ?
• Uganda Manufacturing Association: Sara Kitakule (sp?)
• Private Sector Foundation: Sam Rutega

WFP Radio Electronic Mail System for Remote Rural Locations

AfricaLink generally concentrates on those who are the easiest targets for Internet access, those with a computer and a telephone line. As telephone line penetration in Africa is limited, easy targets are generally confined to major towns and cities. In the poorer countries in Africa, few towns have adequate telephones to carry electronic mail packets.

The World Food Program, with funds from USAID's Bureau of Humanitarian Assistance, has developed a seamless radio gateway for Internet electronic mail. Standard Internet addresses can be assigned to clients of a high-frequency radio node in remote rural locations. Mail packets are transformed into a format suitable for transmission via the Codan proprietary data transmission protocol using gateway software written by technicians of WFP/Kampala. It is this gateway software that is the principal innovation, as it allows users of the system to take advantage of conventional Internet mail software. Users need not be trained on any specialized data system.

Mail from an ordinary Internet site (e.g. in Washington) travels via the Internet to a server in Kampala, is routed via a leased line to WFP headquarters, is transformed by the gateway, and is finally transmitted to a rural location via radio. Gateway software at the rural end transforms the mail back into conventional Internet format, allowing it to be read by ordinary mail clients; Pegasus Mail is used by WFP. Mail from the rural location is similarly delivered to any Internet address.

WFP presently delivers mail to Arua and Pakelle in Uganda, as well as to several other towns in neighboring countries (either online or planned are Goma, Bukavu, and Uvira in Zaire; Bujumbura in Burundi; Kigali in Rwanda; Lokichokio in Kenya; Kigoma, Isaka and Dar es Salaam in Tanzania). The system is called Deep Field Mailing System (DFMS). Equipment may include at each point (station) and node (base station) a Codan 9002 HF Data Modem and a Codan 8528 SSB Transceiver, reportedly costing about $6000 total.

The Codan modem is required for the software WFP has developed, but can be used with non- Codan radios. However, WFP staff note that Codan modems are particularly well suited to this purpose as they are not prone to overheating.

An antenna for the rural site, which can be made of inexpensive wire stretched between two trees, is cut to length according to the frequency at which transmissions will be made, and is oriented perpendicular to a line between the rural modem and the node. The antenna for the node may be more sophisticated to improve performance.

At a site outside of Kampala, far from interfering electric motors and transformers, a wire some twenty meters in length is stretched between a house and a tree along a line pointing roughly in the direction of Bujumbura. Perpendicular to this wire are other wires, precisely spaced, and cut to varying lengths conforming to the complete range of frequencies that are to be used in communicating with a number of different points. The antenna was finely tuned by trimming the wire and testing signals with an inexpensive meter. Technical expertise in the field of HF radio was required to determine the procedures, but the actual operation was fairly simple.

The result of the antenna tuning operation is greater bandwidth for data transmissions, as much as 2000 bits per second (bps) as opposed to 1500 bps for an ordinary antenna. Transmission to Arua and Pakelle is in the 5 to 9 MHz range. Longer distances, e.g. to Dar es Salaam, are at around 14 MHz. WFP/Kampala presently handles as many as 1,200 messages or 7 MB uncompressed per day. In an experiment conducted between a system mounted in a vehicle and the WFP node some 15 kilometers away, throughput of between 600 and 1200 bps, uncompressed, was observed. Data are compressed before passing through the modem to improve performance.

Discussions with WFP staff centered around whether an experiment could be undertaken in something other than the crisis setting in which WFP ordinarily operates. Given that USAID has funded their operations to this point, WFP staff expressed agreement in principle. An experiment would presumably have to be agreed at a senior level.

The purpose of an experiment would be to explore whether sufficient demand exists to support a radio node operated by a firm in the private sector. A private-sector firm could be invited to assist with the experiment. WFP staff noted that a contact in MAF is already using comparable technology with Lotus CC:Mail and charges US$0.30/kb.

Persons Visited

• WFP: Alan (sp?) Jones, Gianluca Bruni, Malcolm Brew, Peter Casier

ICRAF/AfricaLink Network Partners

Following up on the tour of Tanzania, discussions were held with those involved in accomplishing electronic mail connections for USAID partners in Uganda. All those consulted expressed general satisfaction with the process.

Under the USAID AfricaLink grant to ICRAF, all expenses for AfricaLink/ICRAF partners are paid by ICRAF for the first year. The concern was raised that after one year, these partners will be required to pay recurring costs, but are not presently aware of the level of costs being paid by ICRAF. The financial officer of ASARECA asked that he be provided copies of all bills paid by ICRAF in order that ASARECA be prepared to budget for the second and subsequent years.

USAID/Washington and USAID/REDSO/ESA staff had expressed concern for the connection established at ASARECA headquarters in Entebbe. Staff at Starcom have devised a solution to the problem of poor telephone lines to Entebbe, using a radiophone and special modem costing roughly $3000. The system reportedly was tested and worked adequately in Professor Mrema's office. He will presumably pass along a request for assistance to ICRAF.

In addition to the startup cost, ASARECA will incur a charge for radiophone usage of $38/month for the first 60 minutes, plus US$.38 for each additional minute, over and above normal Starcom charges. Should cellular phone service become an option, costs are US$0.45 per minute after a $200 one-time setup charge.

A visit was made to the Agricultural Research Information Systems (ARIS) office (formerly NADIC). Starcom, the ICRAF-selected ISP, offers basic instruction on the use of standard software. Staff at ARIS expressed a need for a printed reference manual and training for specialized tasks such as search techniques for agricultural information.

Staff at ARIS are probably not yet aware that in their first month they exceeded the 5-hour standard usage allowance given by Starcom, and that their account will be charged $122 over and above the standard $50 fee for full Internet access. This information was provided to AfricaLink by Starcom. ICRAF has agreed only to pay for electronic mail access, i.e. the first $30.

Persons Visited

• Starcom: Edward Baliddaya
• Infomail: Jean-Paul Minet
• MUKLA: Charles Musisi
• ARIS: Esther Lwanga
• ASARECA: the finance officer

ICRAF/AfricaLink Help Desk and General Networking Support

Discussions were held with Charles Musisi of the MUKLA organization at Makerere Universityconcerning his candidacy for the AfricaLink East Africa Help Desk position. He was enthusiastic about the idea. The ultimate decision will be made by ICRAF. The aim of the Help Desk is to facilitate workshops and assist service providers in providing better customer service, especially for USAID partners.

Discussions were held with individuals prominent in the information systems industry in Uganda concerning the possible formation of a Uganda Internet Society to promote better access and services in the country. One proposal being considered concerns a national electronic "backbone" for local traffic, sustained by the Uganda Internet Society as a neutral party, with physical facilities possibly to be housed at Makerere University. A promise was made to assist Ugandans in making better contact with the USA Internet Society. Those involved were urged to develop a fair and open process for participation to establish legitimacy for the organization, the aim being to position it for discussions with donors on interventions that will benefit all in Uganda.

Persons Visited

• MUKLA: Charles Musisi

APPENDIX I: Information Technology in Uganda Implications for USAID's Strategic Objective I

September 26, 1996
Jeffrey A. Cochrane

The USAID AfricaLink Advisor, Jeffrey A. Cochrane, was invited by the SO1 team of USAID/Kampala to participate in the Uganda Mission's strategic planning process, specifically to address the following issues:

• Review existing information systems in Uganda and the region, and advise on the most effective.

• Recommend how the Mission might support the connectivity of various projects and programs at the national and regional level.

• Provide estimated costs involved in establishing electronic networking systems, and address sustainability issues.

Analysis conforms in scope and length to the standardized format requested by the Mission.

Issue Description

Information systems are part of the enabling environment for business of any kind. Rural businesses acquire news of exchange rates and the price of credit, while lenders request credit histories and authority to draw on available funds. Vendors advertize their products and learn about market trends for making production decisions. The information system is the infrastructure by which business decides what to produce, when to harvest, and where to sell. It is a key component of the enabling environment of business.

Information is increasingly the engine of economic growth in the world economy. Already many leading firms and industries in Uganda are taking advantage of information technologies to increase sales or enhance services to their consumers. The impact has largely been confined to the urban area around Kampala, however. If rural household incomes are to be increased, the issue of access to information technologies in rural areas for rural businesses must be addressed.

Context

Kampala is a leader in Africa for Internet access. Two private firms offer full access to the Internet in a telecommunications environment that is one of the most liberal in Africa. Prices are low. A slow connection to the Internet in Ghana costs $100. In Kampala it is half that price for twice the speed. Electronic mail access via the Makerere University system, MUKLA, is asurprisingly low $20 per month for unlimited volume. MUKLA is still the service of choice for many, not only because of the low price, but also because the specific technology used by MUKLA -- Fidonet technology -- is robust over problematic telephone lines.

For activities affecting rural business opportunities that take place in Kampala, information systems are well developed by any comparison to Uganda's neighbors. For example, the IDEA project collects information of great use to traders who purchase commodities produced in rural areas. The project makes excellent and increasing use of the World Wide Web and electronic mail. It then disseminates this information through more conventional means -- fax, courrier, post.

Growth in the Internet services industry in Uganda is rapid. Firms generally realize a positive cash flow at a low, competitive market price, if well managed. It is expected that this trend will continue in Kampala. There is also the expectation that the national telephone company will be privatized, and many believe this will lead to more effective service. One private company has published plans to bring reliable telephone service to many rural towns via satellite. Many of the decisions that must be made to realize these developments are political rather than technical.

Problems and Constraints

Penetration of the newer information technologies in Uganda is poor. Outside Kampala, electronic mail must in general be obtained by dialing Kampala. This concentration of information services in an urban area is not unusual, however. In the USA, in the State of Mississippi in early 1996 for example, local telephone access numbers for Internet services were available only in the capital city and one coastal town. A key difference, however, between Uganda and Mississippi is that in Mississippi it is quite feasible at a reasonably low price to access the Internet via telephone from even the most remote farmhouse. In Uganda, this is decidedly not the case, except in some major towns in the Central and Southwestern areas of the country.

In a brainstorming session, USAID Mission staff in Kampala discussed information system constraints in the Central Uganda town of Lira, which is precisely the kind of place in which activities pertaining to SO1 are likely to be concentrated. These constraints are likely to be found in many rural areas of Uganda:

• Businesses in Lira fail to receive timely news of tenders offered in Kampala

• Firms seeking capital fail to hear of visits by investors, or are unavailable to present their portfolios when requests are received by the Uganda Investment Authority in Kampala.

• Traders and other small companies are simply "out of the loop" in developing strategic business relationships that occur more frequently in Kampala.

• Banks are unable to secure timely information on funds available from central accounts in Kampala.

Basic telephone systems are inadequate by most international standards in much of Eastern and Northern Uganda, and everywhere outside major towns, but the problem is more fundamental and cross-cutting than any one SO. The SO1 team should assure that cross-cutting committees of the Mission are cognizant of infrastructural limitations in their sectors, and should themselves immediately concentrate on helping rural businesses take advantage of new information technologies that are more locally within their grasp.

USAID Opportunities

USAID/Kampala can call on a number of USAID initiatives for assistance in addressing information systems constraints to business development in rural areas of Uganda. The Leland Initiative, AfricaLink, and TradeNet are three likely to be of particular interest in Uganda. Staff of the Leland Initiative in Washington have expressed a keen interest in getting the Internet out of capital cities. AfricaLink provides technical advice and planning assistance to USAID staff seeking to link their networks of partners via the Internet, especially utilizing electronic mail, and works closely with local Internet service providers in Uganda. TradeNet targets specific networking assistance to individuals in the agricultural trade sector.

Uganda is uniquely positioned to take advantage of a new technology that marries Internet communications protocols with high frequency radio data communications. This technology has been developed by a team of World Food Program technicians in Kampala, and funded by the USAID Bureau of Humanitarian Assistance. The promise is low-cost access to electronic mail in remote rural locations without electrical or telephonic infrastructure. It appears that the technology delivers on this promise. The cost per site for equipment in addition to a computer and electrical power supply is about $8000. The message cost is nil. World Food Program staff indicate significant interest in a pilot scheme with USAID -- precisely because USAID provided the funds used by WFP to develop the system in the first place -- to test the commercial viability of their system, which might then be offered to private entrepreneurs who could offer services to USAID partners in remote rural locations in Uganda.

Intervention Strategies

There are a number of levels at which USAID support for access to the Internet and other information technologies can be applied. In general, there should be an information technology component to every new project written. It is not uncommon for planners to overlook the following factors, not only for the implementing organization but also for its partners:

• Information technology hardware peripherals (modems, scanners), including spares and proper line protection devices

• For activities centered in larger organizations, an organizational local area network to facilitate intra-office communications (LAN wiring and hub equipment, software,installation, training)

• Internet access accounts through a local or regional provider

• Information technology support staff, either on site or through contract to a local service provider

USAID/Kampala should support the development of a locally strong and competitive information technology industry, with greater orientation toward customer service. Within reason, USAID/Kampala should procure hardware locally, and support reductions in tariffs, rather than import duty free. Provisions should be made for USAID partners to have access to workshops and trainings conducted by local service providers. Through its grant to ICRAF in Nairobi, AfricaLink anticipates employing a staff person in Kampala who will develop training materials that can be used by local firms throughout East Africa. This specific technical support service is available to collaborating projects and programs of the Uganda Mission.

AfricaLink has a tested strategy for supporting access to the Internet for specific networks of USAID partners, which involves AfricaLink staff working in partnership with Mission staff and staff of particular programs and projects. As \the Mission identifies particular networks for assistance, and provided the Mission has planned ahead for funds to support information systems development, AfricaLink can assist with technical information and planning for implementation. Details are available via the Internet at /alnk.

Among the strategies that might be pursued are extension and business information centers, where traders, producers, and services firms can turn to a reference librarian or an extension agent, who in turn can consult a computer loaded locally with pertinent information, updated periodically via HF radio or telephonic connections to Internet service providers in Kampala, and who can send electronic mail messages anywhere in the world to find answers to even the most vexing questions. For larger organizations with access to their own radios or telephones, organizational reference terminals connected directly to service providers are within the realm of possibility. It remains only for those responsible for program activities to weigh the costs and benefits.

APPENDIX II: Information Technology in Uganda Implications for USAID's Strategic Objective I

September 25, 1996
Jeffrey A. Cochrane

The USAID AfricaLink Advisor, Jeffrey A. Cochrane, was invited by James Dunn of USAID/Kampala to participate in the Uganda Mission's strategic planning process, specifically to address the following issues:

• Review existing information systems in Uganda and the region, and advise on the most effective.

• Recommend how the Mission might support the connectivity of various projects and programs at the national and regional level.

• Provide estimated costs involved in establishing electronic networking systems, and address sustainability issues.

These three issues are addressed in the three following sections.

Analyses are to be referenced to the USAID Mission's strategic objective 1. The primary result desired under this objective is an increase in rural household income, generated essentially as a result of increased rural business activity. These are the key intermediate results targeted:

• Increased use of financial services by rural businesses

• Increased production and marketing of agricultural products

• Improved enabling environment for business

A specific discussion of information technologies with respect to these intermediate results takes place in the fourth section.

I. The Extent of Information Systems in Uganda

An information system comprises social structures employing various technologies to acquire, process, and disseminate information. A particular technology is a specific technique and the corresponding knowledge and social support required to take advantage of it. Discussion will address both systems and feasible technologies in Uganda.

Since there is often confusion over what constitutes an information system, it may be useful firstto review briefly the range of systems commonly found in Africa in general and Uganda in particular. The information system is an important part of the enabling environment of any economy. Loan officers seek accurate data on rural business activities in order to judge the merits of rural loan proposals. Traders seek timely data on prices in order to know where to send buying agents. Commercial enterprises in distant towns need to hear news of tenders in order to keep pace with their urban competitors. All make extensive use of information technologies, though perhaps not in the ordinary sense in which technology is construed only in its most sophisticated forms.

Consider as one example the system commonly used by traders in acquiring information on farmgate prices. Sophisticated networks of commercial vehicle drivers and trusted agents visually inspect prices in remote markets and question producers directly, then carry this news back to traders who process the information and determine where to send their container fleets.

As an alternative, the speed of communications might be increased through the introduction of electronic communications. A trader might use a telephone to contact a trusted colleague for remote price information. The structure of the trader's network adjusts slightly, obviating the need for data transmission through commercial vehicle drivers. This reduction in the number of hands through which the information must pass on its way from farmgate to trader presumably enhances its reliability, arguably improving the information system, at least from the traders' perspective.

As a next step, a government service might broadcast news of prices and supplies observed by extension agents. This more drastically alters the nature of the information system. Traders might now rely less on private personal networks of associates, but only to the extent that the public service addresses their particular needs.

The introduction of electronic information retrieval technologies (e.g. the World Wide Web) places control of electronic information in the hands of traders once again, and in a form with significant economies of transmission and scale. Libraries of information can be developed for a broad audience, queried, and selectively transmitted to traders in a useful form.

This entire range of information technologies exists concurrently in Uganda today. Discussions with IDEA project staff in Uganda reveal that they and their partners take advantage of all of these systems, and will likely continue to do so even as systems using more sophisticated technologies expand in Uganda.

It is the recent introduction of Internet technologies -- electronic mail, file transfers, and the World Wide Web -- that has attracted particular attention. Uganda is now a continental leader in advanced Internet information technologies, with a competitive market providing some of the lowest prices on the continent for access to the Internet, constrained only by the problem of the "last mile" between service providers and information consumers. This last-mile problem is more than just a function of poor telephone lines. It is also a matter of telephone penetration, which ultimately has to do with poverty.

Internet technologies are of course only part of what will likely continue to be a more comprehensive information system. Which information system and related technology is "most effective"? This depends entirely on context. Other things being equal, the World Wide Web is arguably a more attractive technology than hand-carried notes. Other things rarely being equal, traders might continue to find value in an information system that relies on portable paper.

Generally, introducing the Web in a setting where there are no computers, telephones, or even electricity, probably makes little sense. Where computers are already in place, however, or where they are already being acquired for other purposes, the addition of Internet technologies to enhance the speed and reliability of information transmission systems is a logical next step. In fact many USAID partners are acquiring computers, suggesting opportunities for easy access to the latest information technologies.

II. Supporting Access for USAID Partners

There are a number of levels at which USAID support for access to the Internet and other information technologies can be applied. In general, there should be an information technology component to every new project written. Bids from contractors should include specifications of how information technologies will be applied, or should at least acknowledge that this issue has been considered.

It is not uncommon for projects to overlook the following factors, not only for the implementing organization but also its partners:

• Information technology hardware peripherals (modems, scanners), including spares and proper line protection devices

• For activities centered in larger organizations, an organizational local area network to facilitate intra-office communications (LAN wiring and hub equipment, software, installation, training)

• Internet access accounts through a local or regional provider

• Information technology support staff, either on site or through contract to a local service provider

USAID should support the development of a locally strong and competitive information technology industry. This can only result in lower prices for USAID and its partners. Within reason, the cost savings achieved through duty-free direct importation of hardware should be weighed against the benefits USAID delivers to Uganda through its patronage of local vendors. As part of this policy, USAID should in general support low tariffs for information technology hardware.

As the information technology industry in Africa generally and in Uganda in particular is still at anearly stage in its development, there is an understandable emphasis among private sector firms on strong growth to lower unit costs. Industry entrepreneurs tend to be skilled technicians. Orientation toward customer service has been lacking at many firms.

USAID should support firms in developing effective customer service programs, including regularly scheduled training workshops, and customer support "hotlines" (a telephone technical support number). The easiest way to provide this support is through funding of USAID partners to attend workshops, and through a willingness to pay an additional amount in service contracts for hotline customer service. USAID might also assist in this area through the provision of customer support training and reference materials for service providers.

AfricaLink recommends the following strategy in supporting access to the Internet for specific networks of USAID partners:

• Identify a key person within USAID to act as liaison to the networks of USAID partners to be assisted.

• Define a coherent "network" of partners to be assisted. A useful way to define such a network is by identifying a group of individuals wishing to exchange information electronically. This may not always conform to "networks" organized for other purposes.

• Familiarize the network leadership with Internet technologies, costs, and other factors, and agree on a strategy for network connectivity.

• Identify a network "information manager" who will take the lead in coordinating network access, training, and information sharing.

• In collaboration with local Internet service providers at each network member site, determine costs for equipment, installation, initial training, and recurring costs.

• Identify funding resources to cover some or all costs. A standard "package" of support for electronic mail access includes a modem, all installation costs, initial training (4 hours on site on the day of installation plus 4 hours two weeks later), and three months service. The cost of this package averages between $500 and $800 in Africa. The cost would likely be lower in Uganda, since installation and service costs are among the lowest on the continent, in large measure because Uganda is an unusually competitive market -- Infomail's prices dropped roughly 40 per cent when Starcom initiated operations.

• Contract with service providers to initiate service. A recommended procedure is to have each network member (perhaps with a bit of hand holding) negotiate an individual contract, since each network member will be assuming responsibility for recurring costs of service beyond an initial period. A bank draft can be issued, payable to the service provider, but delivered to the network member, who pays the service provider upon satisfaction of the contract.

This strategy assumes each network member has access to a telephone of average or better quality, and a computer at least in the 386PC class with 4MB RAM and 40MB disk storage. Special solutions must be devised in instances where these assumptions do not hold. Generally, these assumptions will hold with most USAID partners in Uganda and elsewhere.

Assisting with the connectivity of specific USAID partner networks is the area in which AfricaLink usually functions. AfricaLink can work closely with network information managers to develop strategies for implementing an electronic network. It can provide basic background information for planning purposes, including prices, contact information for local service providers, advice on equipment and software, and planning advice for budgeting and information management. Contact AfricaLink for further information at africalink@info.usaid.gov.

USAID can further support local and regional information systems by participating in them and by demonstrating to its partners that information technologies can be productive tools in Uganda. Mission staff should use electronic mail to communicate with their partners. The Mission should develop a presence on a local World Wide Web server, and use that facility for local and regional outreach.

III. The Benefits and Costs of Information Technologies

Before addressing costs, it is worth discussing benefits. The most obvious benefit is a cost savings for data transmission. Most organizations with which USAID works already spend large sums on international telephone voice calls and fax. These costs can be significantly reduced through the use of electronic mail for existing volumes of data transmission. Cost savings exceed expenditures for Internet access in many if not most cases, and the quality of service generally greatly increases.

Organizations should not be surprised, however, if their total costs for data exchange increase due to increased volume. The benefits of more timely and frequent information exchange via the Internet is generally perceived to warrant additional expenditures, though organizations should be prepared to monitor information flows and control costs until budgets can be readjusted.

AfricaLink experience suggests that networks of USAID partners can obtain access to electronic mail for between $500 and $800 per office site. In Uganda, USAID partners in Kampala can obtain access to full Internet services, including email and the World Wide Web, for perhaps as little as $400. This includes $200 for a high quality modem, $50 for installation, and $150 for three months service, provided monthly usage of Internet services does not exceed five hours online. Service for three months in Uganda drops to $90 if access is restricted to electronic mail. After access is obtained, organizations typically face recurring costs of $30 to $100 per month if usage is restricted to electronic mail. In Uganda, electronic mail cost is generally $30 per month for unlimited volume.

For USAID partners situated in larger office settings with existing local area networks, enterprise level access to the Internet is an option that should be considered. Pricing depends on the size ofthe organization and the number of accounts to be opened. Local vendors will provide estimates.

A special situation arises when USAID partners are outside areas generally well served by local Internet access service providers. There is a technological solution for any location -- if CNN can broadcast live from the desert of Southern Iraq, Internet access can be provided from anywhere. It will generally be expensive.

There are a number of options that are suitable generally for activities where information is quite valuable or where the costs can be distributed among a large number of users:

• INMARSAT provides satellite telephone services at between $9 and $16 a minute (numbers valid in 1995, check with INMARSAT for current pricing), which have been successfully used for electronic mail in many places in Africa. The user must invest in a satellite dish and related equipment, at a cost of several thousand dollars. The system is generally adequate for the email needs of a small organization, with message costs of perhaps $2 per page. Large projects and institutions with USAID funding, e.g. AGRHYMET in Niger, have used this system.

• VSAT satellite systems, such as that used by USAID for its NMS and Internet access in Kampala, offer the possibility of reasonably high bandwidth service to the Internet. Local Internet service providers in Kampala use such systems. A satellite system installed in a remote rural town could easily provide the entire town with telephone and Internet access. Starcom, a local telecommunications service provider in Uganda, has reportedly introduced this service quite recently in Jinja. Equipment can cost as much as $100,000 per site, but can serve a large number of customers. The continued viability of the Internet service providers using such systems in Kampala, with retail prices set quite low by African standards, suggests costs can be recovered and are affordable when distributed among a sufficiently large number of people (on the order of at least 200).

• Uganda is uniquely positioned to take advantage of a new technology that marries Internet communications protocols with high frequency radio data communications. This technology has been developed by a team of World Food Program technicians in Kampala, and funded by the USAID Bureau of Humanitarian Assistance. The promise is low-cost access to electronic mail in remote rural locations without electrical or telephonic infrastructure. It appears that the technology delivers on this promise. The cost per site for equipment in addition to a computer and electrical power supply is about $8000. The message cost is nil. World Food Program staff indicate significant interest in a pilot scheme with USAID to test the commercial viability of their system, which might then be offered to private entrepreneurs who could offer services to USAID partners in remote rural locations in Uganda.

Throughout this discussion, emphasis has been placed on the role of the private sector and private entrepreneurs in the provision of information services. This approach is inherently sustainable from the market's perspective. It is ultimately more sustainable than other approaches, e.g. project funded service providers, since the general promotion of a strong and competitive localservice provider industry tends to result in lower unit costs for services. The relatively low recurring costs for information services are simply integrated into the ordinary operating expenses of the organizations that use the services, just as are the expenses for telephones and electricity.

IV. Implications for the Mission's Strategic Objective I

Recalling the Mission's particular interest in rural business development, rather than discussing in general terms the importance of information technologies, a specific practical example will hopefully prove useful. This example arises out of a brain-storming session that brought together individuals interested in private-sector development, agribusiness, and cooperatives development. What was added to the discussion was specific information regarding the potential uses, costs, and benefits of specific information technologies.

In Central Uganda the town of Lira is in many respects a gateway to the North. It is, unfortunately, poorly served with telecommunications infrastructure. Staff of the Uganda Investment Authority (UIA) describe what must surely be an oversubscribed party-line system. The UIA staff also observe that telecommunications is not the only constraint in Lira -- electrical power generation is also a problem.

Yet the town is still considered a trading Mecca, and is seen as a potential engine for rural economic growth in Northern Uganda. Lira is a base for the Northern Uganda Manufacturing Association, and also for the Northern Uganda Food Security Project. The Uganda Investment Authority has a regional office there as well. All are partners of USAID.

At a quite practical level, Mission staff discussed potential problems stemming from poor telecommunications;

• Businesses in Lira fail to receive timely news of tenders offered in Kampala

• Firms seeking capital fail to hear of visits by investors, or are unavailable to present their portfolios when requests are received by the Uganda Investment Authority in Kampala.

• Traders and other small companies are simply "out of the loop" in developing strategic business relationships that occur more frequently in Kampala.

• Banks are unable to secure timely information on funds available from central accounts in Kampala.

• USAID in Kampala is unable to monitor activities in Lira on a day-to-day basis, and USAID staff visiting Lira are unable to remain as long as they might if they were able to manage a portion of their affairs of the Kampala office remotely via electronic mail.

These constraints to small-business development in Lira suggest a justification for an experiment with a local service provider using the World Food Program radio technology, or some othertelecommunications experiment. The Leland Initiative, under its SO3 addressing access issues, might also offer opportunities for Lira, and for other places like Lira in Uganda.

The experiment might proceed as follows:

• Secure agreement (at the local director level) between USAID/Kampala and WFP to undertake the experiment. Secure approval from appropriate Ugandan government authorities.

• Establish a WFP/USAID DFMS (radio email) hub in Lira. WFP technical staff would provide support. Primary implementation might be undertaken by technicians from a local communications firm. These technicians might be paid under a USAID contract, or the local firm might contribute their services in return for rights to run the service as an independent commercial enterprise upon conclusion of the experiment.

• Establish accounts for local NGOs and other USAID partners in Lira. These would likely be "walk-in" accounts unless local telephone links can be established, or individual organizations may wish to invest in their own radio equipment.

WFP staff would be best prepared to develop cost estimates and labor requirements for the experiment.

Information systems and technologies are part of the enabling environment. There is no doubt that improvements in information systems in the North will contribute positively toward attainment of the Mission's SO1. The aim of the experiment would be to see if improvements in a specific place can be accelerated through the introduction of a new technology in partnership with the private sector. Careful consultations on the design of the experiment should be undertaken with local firms before proceeding.