This archive report was first published on 29 June 2020.
As we navigate the digital age, the world is rapidly moving towards smart cities and the internet of things. This shift has created a surge in demand for smart technology, prompting more companies to collaborate and license technology within the ecosystem.
However, the US government's recent restrictions on Huawei have brought about significant changes to the tech supply chain. The focus is now on semi-conductor and software businesses, with US companies and their affiliates facing restrictions on re-supplying certain entities with products and software containing US components.
These restrictions have sparked debate, with some arguing that they are driven by security concerns. Others, however, believe that the true intention is to slow down technological development in countries or companies perceived as competitors. This move has significant implications for the technology supply chain, particularly for African countries like Ethiopia, Kenya, and Rwanda, which are working towards becoming technology manufacturing powerhouses.
The current restrictions depart from the best practice of an open ecosystem, where anyone can join and interact with other parts of the ecosystem. This approach has enabled tremendous growth in the technology sector, particularly in job creation. The restrictions will undoubtedly impact the partnerships these countries need to establish to facilitate their dive into technology production.
By attempting to control who can use what technology and who can work with which partners, the US government is going against the principles of an open ecosystem. This move is likely to slow down the innovation ecosystem and may lead to the splitting of the innovation space, resulting in independent products that do not inter-operate with each other.
The consumer will ultimately suffer, as their ability to switch, mix, and match products from different suppliers will disappear. The cost of being forced to choose and stick to one line of products will also increase, given the monopolistic realities that will emerge.
Furthermore, if products cannot talk to each other easily, or if they end up using different standards, or if supply chains get fractured, and there is no trust left in the ecosystem, it will also make the internet less secure.
It is essential to ensure that trade barriers do not hamper technological advancements. No country or entity has a monopoly on know-how, and continued collaboration is crucial for development, especially in these uncertain times.
As we navigate the COVID-19 pandemic, our dependence on technology has increased exponentially. It is the wrong time to create barriers to technological development, especially when technological interdependence has played a critical role in advancements. We urgently need to lower costs and accelerate technology deployment in Africa, allowing us to choose whichever technologies and companies we like to buy from or sell to.
