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The Application of Information and Communication Technologies in the Least Developed Countries for Sustained Economic Growth

image of The Application of Information and Communication Technologies in the Least Developed Countries for Sustained Economic Growth

A lot has been said about the digital divide that exists between the developed and the least developed countries (LDCs). Yet so little is being said about the opportunities that exist in the ICT Sector in the LDCs. This report takes a very close look at this group of countries and advances the argument that ICTs can play a catalytic role in getting these countries out of their current poverty trap. In that respect, a win-win outcome for both the investor and the countries is not in question.

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LDC pro-forma financial analysis of the telecommunications sector

In order to ascertain the prospects for private investments in the LDC telecommunications sector we have prepared pro-forma income statements and cash flow analyses for the LDC group of countries. For the purpose of our analysis we have assumed that the LDC telecommunications sector would be one homogeneous market that is served by one company. Clearly, the results for the aggregate LDC market will differ substantially from individual country markets in respects to income, cash flow and ROI, hence caution is advised when interpreting the prospects of the sector in its totality as a guide to the performance of the individual country markets. Nonetheless, the aggregate analysis will serve as useful guide to the potential opportunities provided by LDCs to investors in telecommunications related ventures.

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