Foreword: The Internet of Things and its potential in International Cooperation

The Internet of Things (IoT) is growing. In urban centres of emerging countries – megacities such as Rio de Janeiro, Beijing or New Delhi – thousands of sensors are already monitoring air quality, traffic and water systems. Increasingly, local governments are using IoT technologies and the data analysis they
enable to better manage resources while driving economic growth. The potential for such economic growth is vast. A McKinsey report for example estimated the possible economic impact from traffic applications, smart waste handling, and smart water systems in urban areas at “100 billion to 300 billion US-dollars per year by 2025, assuming that 80 to 100 per cent of cities in advanced economies and 25 to 50 per cent of cities in the developing world have access to IoT technology by that time.” However, currently only a few stakeholders in international cooperation are specifically promoting IoT applications.

This report is a first attempt by the GIZ to understand and describe how the Internet of Things will impact developing and emerging countries – and how stakeholders in international cooperation should react. Starting with case studies from Ghana, Kenya and Brazil, we will examine how IoT technology might be applied in the three key sectors healthcare, agriculture and disaster management (page 10). This will lead us on to an analysis of the key mechanisms through which IoT can create positive impact in developing and emerging countries (page 19). Based on these impact mechanisms we will finally propose measures by which international cooperation organisations can support the development of IoT to maximise this impact (page 21).