Dear Colleagues,

Whether profit is essential on not for successful ICT for Development
activities depends on the nature and over all mission of the activity
under question. Profits are certainly necessary for financial
sustainability.

As far as I know, however, the "profit" is not the problem/issue at all
-- the issue should be probably what is the price mark-up on the ICT for
Development activities -- which activities/services are charged for
profit?

We may recall that one of the reasons why rural communities can not use
ICT to improve livelihood is cost and availability of ICT resources.
It's not an either or situation; once ICT tools are made available
(e.g., Telecenters) they should be affordable. You also notice that
affordability is relative to community economics.

On the other hand, it's OK for an ICT for Devlopment initiative to seek
profits to ensure that services are available the next day. Detailed
planning would have to be made to decide upon which services to charge
for and which will be essential for fostering development - where
profit-motivated charges could kill interest for the service.

A strategy that I have found useful is to identify a few core services
that businesses would charge less for (e.g., cost recovery fees) for
their community development impact, and leave others on a full cost
basis to support sustainability. This would ensure that poor people are
not neglected for services in pursuit of profits. The rush for profit
(in the extreme) is an engine for promoting the digital divide and
growing the gap between the rich and poor. I understand it is the
bedrock of the growth of civil society organisations to balance up
effects of private sector led development around the world.

There is also such a thing as cost-recovery which can be applied to
critical services selectively.


Regards, 

Meddie Mayanja



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