Search Results for “why the internet” – Page 6

Search results: "why the internet" (page 6 of 9)

Africa Gathering Nairobi 2009

Today I’m at AfricaGathering, a small conference focused on tech in Africa. I was at the first one in London earlier this year, and we had a great time, so I hope this will be just as good. This is the third one of it’s kind, but the first to take place in Africa – in this case Nairobi, Kenya at the British Council. I’ve decided to do one long running post today, where I’ll just keep adding to the post as the day goes on – refresh the page for more.

British Council in Nairobi

Today’s speaker list

PesaPal

PesaPal logo Right now Agosta Liko, a smart tech businessman who runs Verviant, is talking. He launched PesaPal just 2 months ago as a web-based mobile payments system for Kenya. Now that I’ve moved back to Kenya, I’m looking forward to trying PesaPal out in person.

“Life is 98% boring, work is boring and operational. 2% is inspiration and that’s where you get all the press. Make no mistake, the boring stuff is where you grow your business.” – Agosta Liko

There is no consumer oriented web payment system in Kenya. It’s a way for the unbanked (and banked) to buy online in Kenya. Agosta thinks that they are well positioned to be the most efficient transaction system in Africa. PesaPal is trying to find equilibrium between value, payment systems and real money. Making a transaction of beans or cows equivalent to one made by credit cards or PayPal.

PesaPal value flow

The transaction rate for merchants holding an account with PesaPal is currently 2.75%. PayPal, the closest comparable online payment system is set at 2.9%.

Kenyans for Change

Jane Munga is here to tell us about a social movement called Kenyans for Change (K4C). They’ve been working on uniting Kenyans worldwide, starting with a group on Facebook and quickly moving around the world with 10,000 users in the diaspora and in Kenya itself. It’s a voice for national reform online.

Jane Munga of Kenyans for Change

Jane is talking about what’s needed to restore hope in the “Kenyan Dream”. This dream is defined by the Harambee spirit, equality, national unity and sound leadership. With last year’s post-election violence, the poor state of roads and hospitals and all the other ails that we face in Kenya, it’s a hard sell. What’s interesting to me here is to see that the impetus for this initiative seems to come from the diaspora, after all, Jane lives in Alabama most of the time. This begs the questions, will it take the diaspora taking part to make real change happen?

One of the projects that Kenyans for Change is working on is called Project Amani (“peace” in Swahili), focused on the youth by the youth.

Africa Rural Connect

Molly Mattessich is here to talk to us about an initiative by the US National Peace Corps Association, Africa Rural Connect is an online platform with a mission to connect current and returned Peace Corps Volunteers with the African Diaspora, development practitioners, scholars, technologists and innovators to discuss rural agricultural development challenges and solutions in Africa.

“Find answers to Africa’s rural agricultural problems”

ARC is a way to use global collaboration to solve endemic agricultural issues across the continent. They focused the project on two main groups. First, Peace Corps Volunteers who have lived in the rural areas and who have a good understanding of what is going on at the village level as they lived there for two years. The second is the Afrian diaspora living around the world.

The $20k grand prize winner is actually here in the room, Jacky Foo with his “The Ndekero Challenge: A Systems Approach for Rabbit Keeping by a Rural Community in Partnership with a Commercial Rabbit Farm”.

The ARC project is built on Wegora, a tool that’s part blogging, commenting and voting. It’s built specifically for use by communities and collaboration amongst them. It’s really well designed platform and I’d expect to see it used by a lot of other organizations in the future.

We’re currently running through a workshop on collaboration (Low-tech social networking), where we write down our “big dream” and the steps we need to get there. Others in the room can then come up and offer help on what can be done to make it happen.

Kenya Airways

Rose Ohingo and Ann Muthui (who’s in charge of the social networking side of customer service) are here to talk about how Kenya Airways has created an online presence and a social networking strategy. They are here to talk about how the airline is using social media networks like twitter to attract new business and keep in touch with itâ€™s client base to great success.

Look for Kenya Airways on Twitter at @KenyaAirways, on YouTube and Facebook.

What have we learned about “being out there“?

First off, people are surprised and impressed to find Kenya Airways interacting with them on social networks where they are online. Where they build relationships with people on a personal basis. People try to verify if it really is a KQ representative, and then they dig even deeper trying to find the names of the people behind the account(s).

Using analytics, Kenya Airways really tries to understand who is following them and who is interacting with them online. It turns out that 17% of their Twitter followers are travel guides, they have almost 2200+ followers, and their greatest growth has been 26% in the month of December (more stats).

“It’s a human face that they’ve never seen. They ask about jobs and how it is to work for KQ. They want to have a look inside the company.”

Marketing on social media has been very successful, case-in-point was the KQ tweet on the ability to use Mpesa to pay for flights using mobile phones.

Access Kenya

Kris Senanu is here representing Access Kenya, one of the countries largest ISPs, which services the corporate market. Kris will be talking about: “Fibre â€“ the dawn of a new era”.

In 1995 Kris was graduating out of college, and the fastest internet connection you could get was 9.6kb and you needed a phone line – at that time there were only about 210,000 working phone lines, most within Nairobi and Mombasa. If it was raining, you had even less of a chance getting online. Times have changed.

Ultimately, the world is now flat, now that we have fibre in Kenya – we can compete and connect at a global level in ways we could never do before. Job creation and lifestyles will change as knowledge workers, who are needed in the new economy, now have access to the same level of connectivity as anyone in else in the world. Africa would have followed Europe and the West by going towards eCommerce – we have the ability to leapfrog that and go straight to mCommerce. We have the ability to do transactions that you would have spent a long time doing before, getting in 2 hour long lines and dealing with city traffic, just withour mobile phones.

Technology is a key enabler and facilitator for our transformation in Africa.

I agreed with Kris about the technology gap decreasing. I asked him if the challenge wasn’t any longer a technological one, is it a cultural one? Is it an issue of Africans using technology in a way that truly makes them equal on the global level – on time, reliability, quality?

Kris had a brilliant answer, starting with Kenya having a culture of excusability, where peopel always have an excuse for why things are late or shoddy. He then went into the difference between “Matatu-time” vs “train-time”. The train leaves at 8:05 on the dot, if you’re not on it by that time, your loss. Matatu-time leaves at 8-ish – time isn’t as important. This cultural understanding of time is an area where there is a gap that might be the biggest issue between Africa and the rest of the world.

On Customer Service
Juliana aksed, “How does Access Kenya deal with customer service and support when there are high expectations in the market?”

Kris goes on to talk about the way Access Kenya grew from being a company that dealt with corporate clients. They would rather pass up business than deal with consumers. Now however, they found that they had excess bandwidth, especially in the evenings – so they decided to create a consumer-focused service. This hasn’t worked out so well. Kris fell on his sword, stating that they are trying to improve their consumer services, but they are no where near where they need to be and are trying to make it better, trying to make it as good as their corporate services.

Essential Africa

Jimmy Gitonga & Juliet Mukunga are here to talk about Essential Africa, an African search engine, portal, and free web directory with comprehensive listings covering all African countries on one single virtual platform.

Jimmy tells us how in Africa, there’s not normal street names or directories for things. In Africa, you need a guy. As in, “I know a guy…” who can help you as you’re trying to find something.

An example, you’re trying to plan a trip across Africa on a bicycle, how do you know where to stop, eat, sleep and visit? There is no directory. There is no content.

This is why they created Essential Africa, a way for people to get a free African listing. He gets an address, map directions, contact number, and a description and a URL to the company’s website.

“Everyone thinks that we’re philanthropic. No, we’re not blue-eyed like that. We make money off of the eyeballs and the advertising.” – Jimmy Gitonga

Essential Africa has been at it for two years. They started with spidering the web (with limited success) and then getting people to start entering their own information. It’s been a long road, but they’ve started to gather a lot of information, a lot of listings for organizations and small businesses who have never been on the internet at all.

They are hoping to be the African “human” search engine. It’s built for computer and mobile devices, covering all African countries on one single virtual comprehensive platform. They’re hoping to be the gateway for Africans and the friends of Africa who are visiting.

Movirtu

Christine Ogonji is here as one of the newest members of Movirtu. They are creating a way for poor people to share a phone, but not a phone number. They target services to the bottom of the pyramid, for profit – the classic “do well by doing good”.

Out of 3.4 billion people in the world who have a handset and a SIM card, 1 billion only have a SIM card, but no phone. Their income is $1-2 per day, but they spend 5-30% of their income on mobile communications.

Here’s a video about Movirtu, and why it’s a product that could make a big difference in Africa:

Funding for Movirtu has come from Gray Chost Ventures and Grassroots Business Fund.

Right now Christine says that Movirtu is looking to provide an Mpesa-like account for people using the virtual phone numbers. The name for this service is MXPay, and is going to have mobile money integration with a regular account and one time use. Distribution of monies or acceptance of payment from specific people below the poverty line who do now own a phone or a SIM card.

They’re targeting their first 1 million customers in 2010.

The End

A big thanks to Ed Scotcher and team for today. Tomorrow is the big “open” day here at the British Council. Get here by 9AM if you want to get a seat.

Trusted Intermediaries

November 3, 2009 / HASH / 9 Comments

If you’ve run into me in the last couple months you’ll likely have heard me talking a lot about the need, power and abilities of trusted intermediaries. What is a trusted intermediary? It’s someone who sits between two parties, entities or ideas that don’t naturally trust each other and provides a bridge.

Do you trust this bridge? Why?

In some ways, this train of thought stems from the posts on bridgers and xenophiles started by Ethan Zuckerman and riffed on by myself. It’s only as my continued work in the African tech space has evolved that I have come to understand the true value of this concept. Seeing my position makes me realize how valuable it is to be trusted and in the center of a group of unknowns (ideas, funding, people or projects). It’s in the unknown areas of our lives that we search for trust, for people or conduits that impart a measure of confidence to our next decision. For the nod that tells us we’re heading out on the right path.

We lean on trusted intermediaries all the time, in both mundane decisions and important interactions. When you’re looking for a mechanic, you’ll trust your neighbor’s opinion over the phone book. If you need a new bike helmet, you’ll trust online reviews before you buy one with no reviews. Likewise, when you’re going to make a large investment in the African tech space, you’ll search out trusted intermediaries first.

A case study: Ushahidi

When someone is looking to invest in an African tech startup, using seed funding or grants (and it is the same for non-profits or for-profits) they are nervous. There’s a lot of other good ideas out there in other parts of the world, the low hanging fruit, that they feel more comfortable in putting money into. Why Africa? Why you?

Ushahidi started off quickly, and we were able to raise funds for continued operations much faster than many other similar non-profit tech organizations. While we’d all like to think it’s due to the brilliant tool we’ve built, we have to be honest and recognize that the individuals behind it are what gave the funders confidence to move forward. Ory, David, Juliana and I had been on the public stage for a while; we were known quantities.

We were trusted intermediaries before Ushahidi was even thought of. Which begs the question: would our team have been able to raise funds for almost any idea just as easily? Probably not, as the Ushahidi idea, timing and application are special. However, the point is still made, money flows when the people are trusted.

Trusted intermediaries elsewhere

Jon Gosier is a trusted intermediary. His Appfrica Labs incubator and innovation center in Kampala provides a person and entity that funders, projects and individuals are drawn too. His blog keeps him front and center in people’s minds.

Glenna Gordon is a trusted intermediary. She’s a photographer who has been romping around Central, East and West Africa for a couple of years. If you need a pro shooter in a hard spot like Liberia, you’ll find her blogging away at Scarlett Lion.

Eric Osiakwan in Ghana is a trusted intermediary. His leadership at the African ISP Association and the track record he’s had on projects makes him an easy person to go to in West Africa, and his Internet Research firm makes a perfect conduit for interacting with him.

Of course, these three are just a sample, there are many more like them cross the continent in different fields.

What is consistent about trusted intermediaries is that they have found a way to create a bridge between two things, and are trusted by both sides of that bridge. It’s why personal relationships, consistency, reliability and trust are more important now than ever before.

Text2Fly: Flight Schedules by SMS in Nigeria

October 8, 2009 / HASH / 8 Comments

Timi Agama was frustrated with his experiences in trying to get information about flights in Nigeria. It just didn’t make sense that there was no electronic means to track flight schedules. About five years ago he set out on a path to create a mobile solution for the problem. Out of that came Text2Fly, a mobile service that let’s you search for flight schedules by sending an SMS.

“The simple task of finding the next available flight is an inefficient and labor intensive undertaking for the Nigerian business traveller. Nigerian airlines donâ€™t operate call centers and the Internet is slow. So the business traveller must assign staff to search all airline web sites or even send them to the ticketing office through stifling traffic.”

How it Works

A user sends in a text message to +447786201082 with a simple command, like “From Lagos to Abuja on Monday at 8am”. In response, the system gathers the information about all of the flights in Nigeria that fit your requirements, and sends them back to you as an SMS message.

As Timi states, this is ” A Nigerian solution to a Nigerian problem”. Interestingly, it’s not only useful in Nigeria, and I could see this same application being used elsewhere, not just in Africa but in the developed world as well.

I’m curious as to why the service is only available via SMS. It seems that if you have the data, then it’s easy to make it web-accessible. The advantage there is that you also can start creating ways for people to purchase tickets and thereby have another revenue stream.

The Business Behind Text2Fly

Text2Fly Quote In terms of business model Text2Fly is paid for by premium SMS once it officially launches. It’s free right now though, so definitely worth testing out to see how much it helps in your daily life.

User numbers are still modest because the site and backend system was only flipped on 3 weeks ago. There has been very limited marketing to this point, but there is a plan to launch a real-world and digital campaign once the service is fully tested and stable.

When I asked Timi about how local Nigerians are taking to the product, he stated:

The reactions from people who have used the service has been far better than I could have imagined. One chap I spoke to on the phone enthused about how Text2Fly is not just for busy business people but for “everybody”. Another told me a story of how he showed it to some friends while they were having a drink and all 7 of them stored the Text2Fly number.

[Note: David Ajao has also done a review, worth reading as he’s a fellow Nigerian.]

Never Good Enough: Speed (pt 1/3)

September 14, 2009 / HASH / 15 Comments

We’re never good enough when it comes to speed, stability or simplicity of our mobile and web applications. This is a three-part series where I unpack my experience building apps on each of these subjects. It’s not just for those of us working on Ushahidi, these are the three most crucial abilities of any web or mobile application.

Let me tell you a personal story:

Libera, March 2009

I’m sitting, sweating in the sweltering heat of a Monrovia cyber cafe, I have my notebook out and my am watching the clock. My goal is to see how fast I can load up the Ushahidi home page for the Democratic Republic of the Congo, it has a map, timeline and list of recent events tracking the current level of unrest in the country.

It’s not looking good. As I look around, waiting for the page to load, I count 8 others in the room – 6 of which have fired up stuttering and unusable Yahoo and Skype video chat windows. Why this is the channel and usage of choice, when it so obviously doesn’t work, I cannot answer. But this is reality, and if we expect ordinary Africans to use our application, we had better make sure that it loads up relatively fast on the low-bandwidth, shared internet connections that proliferate across the continent.

Utter failure. After 20 minutes painfully watching the page load byte by byte, I give up. I quickly type out a message to our team, imploring everyone to streamline this “fat, squeeling pig of a page”. Peppering them with questions… Can I buy some caching please? What can we do with this map to make it not kill the load? Can we get rid of 75% of the images on the page? Do we need to redesign this from the ground up?

Granted, Liberia’s internet situation is worse than almost any other on the continent. Especially when it comes to the grinding halt you see in the cyber cafes during the daylight hours as the local population piles on at the same time, completely overwhelming the limited satellite connection. That’s no excuse though. Ushahidi is built on the idea that the lowest common denominator, whether it’s PC or mobile-phone based access, will work. The PC-side is clearly failing.

Worst of all, my patience is short, Liberia is pissing me off with the heat, humidity, lack of bandwidth and no electricity grid. Objectively, this is the perfect state to be in, I am now able to come up with a solution for normal users in Africa.

What other’s know

Speed… if there’s only one thing that you do with your application, make it faster. No, it’s not fast enough.

This isn’t news to anyone, or it shouldn’t be. For years the major web sites around the world have known this and have been building for it. Mozilla, Amazon, Google and Facebook are all aware of just how critical speed is to their success. It boils down to attention threshold and what we, as users ourselves, are willing to put up with.

There is no area in which our team has felt more pain than in trying to speed up the page loads of our apps. Maps tend to be page killers by themselves. Once we add multiple calls to the database we start to get some truly agonizing speeds. It’s a constant pressure that sits on every one of our development cycles, and for which we dedicate a great deal of energy.

User experience research needed in Africa

One area that hasn’t seen enough true user experience testing is Africa. We know that internet speeds are slower, sometimes by orders of magnitude. I’ve got a lot of questions, more than answers at this point. Should we cut out the maps and all images? What’s the true cost of a page load +/- 7 seconds? What is the real value of maps in Africa compared to the West – do they matter?

Jessica Colaco is a top-notch programmer who has shifted to doing research in Kenya. I hope that she, and others like Eric Osiakwan and his team from Internet Research in Ghana, will help us dig out these answers. More than that, I hope they will help us ask the right questions.

Web Hosting and IXP Issues in Uganda

August 23, 2009 / HASH / 5 Comments

I’ve spent the last couple days talking to web designers, programmers, systems administrators and businessmen about the situation in Uganda.

Technologists in Uganda have quite a job on their hands. Sitting, land-locked, behind Kenya and Tanzania they share most of those two countries problems, find that everything is more expensive, and then have to deal with a government who has little to know understanding of how technology can spur economic growth. On top of that, the local ISPs and the mobile operators are happily providing sub-par services at larcenous rates.

It’s no surprise then that we see a lot fewer quality programmers and web designers in Kampala than in Nairobi. However, though there are fewer, there is a great depth of talent available here in those that are doing this work, whether it’s Solomon King‘s Node Six, Jon Gosier‘s Appfrica Labs or Software Factory the creators of Kiva’s rival MYC4.

Local web hosting and the IXP

From what I could tell, there is only one hosting company setup for anyone to get started with a website in Uganda that runs a server from within the country. Few government websites are hosted locally, and the same remains true for almost all business or personal sites. Though there is excellent bandwidth locally, the international bandwidth is what is used, which means that no one (local) is winning.

What is surprising is that there is no local caching of international content going on at the Uganda IXP. If the Google Global Cache was being used, that alone would speed up local performance and make a better user experience. There are rumors of a Google Cache being used at either the ISP-level or Makerere, but that since it’s not using the UIXP, it cannot provide the service to all of the ISPs.

However, more important than that is the fact that it would significantly decrease the amount of international traffic. What’s mind boggling is that the local providers would still be able to charge the same rates, but decreasing international traffic through caching would increase their profit margins. I’m not quite sure why this isn’t being done, I wonder if the ISPs and mobile operators are just making too much money as it is and this is seen as more work than it’s worth.

Uganda’s IXP (international exchange point) is something of a mess too. Apparently, the two founders are in a bit of a squabble, with means each neutralizes the others decisions and nothing gets done. To make matters worse, the environment where it resides can only be considered as hostile to any type of electrical equipment. It’s in the basement of a parking garage where people wash cars providing a healthy dose of moisture, dust is in the air, and there is a general lack of upkeep on it.

Basically, all of the money ($106m) that the Ugandan government and the local ISPs and mobile operators are pouring into the infrastructure is reliant upon this one poor excuse for an IXP. It works, and the packets are switching, it’s just that the operation is not working in the optimal environment – physically or organizationally.

This is troubling for a number of reasons, but perhaps the biggest reason why it sits so poorly with me is that the government has a stated aim of getting more “local content” online. So, while there might be 10 Wimax providers going live by the end of the year in Kampala, there is little foundational infrastructure to support the peering between providers locally, regionally or internationally.

It seems that the biggest problems within the Uganda internet space is more about lack of holistic focus by the government and local ISPs and mobile operators. With a little effort, the peering, content hosting, costs and speed could be improved.

Reactions to SEACOM Going Live Today

July 23, 2009 / HASH / 20 Comments

People all over East and Southern Africa have been awaiting faster internet speeds for a LONG time. I, for one, won’t miss hearing the infamous, “when the cable comes…“ quote that plagues so many of our conversations. It’s here. Now.

SEACOM has done a good with PR and reaching out to people via their blog and Twitter accounts. SEACOM’s media team was also uploading video in real-time to their YouTube channel, so click there if you want to hear really bad audio of the speeches… 🙂 They have their new press release out here, if you’re looking for the “official” talk.

SEACOM in Tweets and Blogs

(note: if I missed one, link it in the comments below and I’ll add it here)

Kung Fu Baby and the SEACOM Cable Launch by Joshua Goldstein (Uganda)
“We launched Kung Fu baby and for the first time in Africa, I saw a YouTube video load completely and play in 6 seconds. We ran a speed test and showed 1.8mbps, 10x what we have in the Appfrica office.”

“1.28 Terabits per second-now that’s what I call digital heaven! Seacom, dare I say I love you? Now, don’t make the Africans pay too much!” by @zanibots

Seacom is here but donâ€™t be surprised if nothing changes by Kachwanya (Kenya)
“Shockingly the people at Seacom think that revealing the names of their clients (ISPs) will jeopardize their relationship with others which are not yet on board. May be I am not getting something here but ISPs will only buy the bandwidth from the Seacom if they have somewhere to sell it.”

“This is one small MB for my laptop, one giant TB for Africa …” by @Akianastasiou on Twitter

How fast can you read this article? by Arthur Goldstuck (South Africa)
“However, the most dramatic indication of the power of SEACOM was the quality of live video links to Kenya, Uganda, Tanzania and Mozambique. Addresses by, among other, a range of dignitaries, executives and the President of Tanzania, were carried live to large screens at simultaneous events in each of these countries.”

“This is turning to be another major hoax. Why is the internet so slow as ever? Why is it Seacom not telling us which ISPâ€™s are enrolled?” by @KenyaFocus

“The President of Tanzania envisions having a “Silicon Valley” in Africa – This could have only be imagined thanks to #Seacom” by @SeacomLive

Oh Kenyans, we have been duped again by TrueKenyan
“According to the information already on the public domain, Safaricom have said that the cost of internet will reduce by upto 30-33% over the next five years. Access Kenya still remains mum since itâ€™s charges are exorbitant compared to other ISPâ€™s. Recently UUnet CEO Tom Omariba claimed that cables will only bring down costs by 20-30 percent.”

In the News

Africa News: Seacom connects East Africa with the world
BBC: Circle of light is Africa’s Net gain
TeleGeography: SEACOM lights up East Africa
Daily Nation: Superfast internet goes live in East Africa and Seacom says undersea cable to spur Africa investment
The Citizen: Dawn of new era for telecom sector

My BBC Post on Blogging’s Evolution and Growth

July 22, 2009 / HASH / 2 Comments

I was asked to do a guest post for the BBC, as they’re doing a new full-production special titled “Digital Revolution“, which is set to focus on the first 20 years of the internet.

The producer asked me to write about the changing face of blogging. Answering the question on, “has blogging lost its feeling of freedom, untethered and raw that once defined it?”

My answer is simply: no. You can read why on the link below:

Voices on the rise: raw and unfiltered blogging still lives

An excerpt (read the full post to catch the arguments):

“So, in answering my question at the beginning, we see not a loss in the freedom and raw power of citizen-based communication, but a burgeoning growth in it that threatens to overwhelm us all. In fact, the wave is coming on so strong and big that the most important question we need to ask is not how to get more citizen blogs, updates and voices, but how to filter it so that it remains useful.”

Interactive Marketing in Africa

June 4, 2009 / HASH / 13 Comments

Last week I had the opportunity to sit down with two people that I have a lot of respect for in the interactive marketing space in Africa. First was Rob Stokes, CEO of the well known Quirk marketing firm in South Africa. Later in the week I got to catch up with Joshua Wanyama of Pamoja Media.

Before I get into that though, you should take a look at these numbers.

Africa’s exploding internet growth

Currently, Africa is the second fastest growing internet market after it was passed with the Middle East in terms of connectivity. The growth rate is 1,100% with only 5.6% of Africaâ€™s 975 million people online.

The 10 largest internet markets in Africa are seen below. These 10 countries account for a staggering 86% of the 54.2 million Africans online:

1. Egypt â€“ 10.5 million
2. Nigeria â€“ 10 million
3. Morocco â€“ 6.6 million
4. South Africa â€“ 4.6 million
5. Algeria â€“ 3.5 million
6. Sudan â€“ 3.5 million
7. Kenya â€“ 3 million
8. Tunisia – 2.8 million
9. Zimbabwe â€“ 1.4 million
10. Ghana â€“ 0.9 million

(Research number are from the Internet World Stats)

Education and Charlatans

Quirk is successful, and they’re looking to expand into other parts of Africa. However, one of the hurdles that they face is that there just aren’t that many people who understand why web marketing is needed, and that there is a need for a real strategy behind everything from your website to links to emails. It’s a problem of education in the business sector, and it comes with two problems.

First, low-bandwidth has caused most internet usage to be lower than normal in Africa. So, a lot of businesses don’t recognize the value of good web marketing, since most of the executives never get online to see their work anyway. For instance, think about the tourism industry in Africa, it is plagued with slow, ugly and hard to find websites. Most of them don’t even realize the business they’re missing out on.

Second, there are any number of people who will tell you that they can do your internet marketing or help with your online strategy and execute upon it. However, that’s simply not true for many claimants. There are likely only a handful of real experts in online marketing in any sub-Saharan African country. In Kenya alone, I can only think of a couple firms or individuals who really know what they’re talking about, and even fewer who can execute upon what they speak.

So, Rob has a challenge in addressing this market in Africa. It’s a big market if it can be cracked, but it takes more than just sales skills, it takes someone with the patience to educate and grow an industry.

Redefining yourself for the market

Joshua Wanyama found himself in a bind. He had just moved back to Kenya after growing a successful web firm in the US. Now he wanted to put Pamoja Media on the map in Africa, and he realized quite quickly that there was a major knowledge-gap in the interactive marketing space. How could he sell the connections that his ad network gave him if the very people he was selling to didn’t have an online strategy at all?

This realization caused him to change his strategic direction of the Kenyan operations to gain a customers. He changed it from being just about his ad network, and added on 5 more areas of expertise that would really give his clients positive returns:

Interactive strategy â€“ how to scale a companyâ€™s operations and marketing online
Creative Development â€“ Interactive ads, landing pages, enewsletters & micro sites
Placement â€“ We run ads on the Pamoja Media Network, Yahoo, Google and Facebook network of sites
Social Media Marketing â€“ This works for clients seeking long term social engagement with customers. We handle blogging, Facebook, Twitter, YouTube, Flickr and other accounts for such clients
Online PR â€“ We also handle online PR for companies seeking to grow their reputations outside of advertising African Market online

It’s a lot of work to sell yourself into new accounts and then keep up with the demands of high profile clients. I know, I’ve been there. I know Joshua, and I know he’ll be successful with this.

What I also know is this, it’s terribly hard to scale a service organization. It takes more people. My hope is that Pamoja Media will be able to gather enough clients in the ad network space so that that remains the core business. This can scale, and it can be done efficiently.

Talking Mobile Banking in Kenya

May 25, 2009 / HASH / 9 Comments

I’m attending the Fletcher mBanking conference in Nairobi today and tomorrow. Right now I’m sitting in the panel on “Perspectives on Mobile and Branchless Financial Services”. It’s quite a panel with, among others, Michael Joseph of Safaricom (of Mpesa fame), Adan Mohamed of Barclays Bank, David Proteous of Bankable Frontier Associates.

mbanking-kenya1

Points from the Panelists

David Porteous
He challenges Kenya to create a Kenyan model, not just of one-off success stories, but a Kenyan one that is open and usable by multiple actors in the country, not just one or two. Something that can be duplicated and used around the world. Lastly, he warns of “Regulator Flu”, much like Swine Flu it sweeps around the world and stifles innovation.

Adan Mohamed of Barclays
Adan starts with this provocative statement, “We will never have an environment where we have no branches.” He says it is ingrained in our psyche to use branches, and we will always need branches, so this idea of a branchless banking system is nice, but will run concurrently with the old status quo system. The use of technology continues to be small, it’s patchy, it’s mixed. There’s a long way to go, as people are nervous of what goes on behind this internet system.

Specific challenges revolve around regulation. For instance, if you want to run it 24/7, you have to get permission, you have to deal with money laundering rules, etc… He thinks that the central bank needs to be given a greater mandate. However, we need to see this space not revert back to the old ways, even as more control is given.

Customer contact tends to be low in a branchless system. He thinks this is a place where people want to be in touch and face-to-face with people. A lot of focus has so far been on the payment side of the occasion – we need to focus on the savings side of the equation as well.

Mark Pickens of CGAP
What we have today, is not necessarily what things will look like in the future, “what could disrupt the current landscape?” Mobile network operators are leading the charge. We think there will be 120+ initiatives like Mpesa in the next year around the world.

What is driving this for the mobile operators?

2.93B shillings from Mpesa of revenue
Increases in loyalty
Increases in users
Globally think there is 1b ppl with a mobile phone but no bank account

Where else could innovation come from?
What if the kinds of technology that poor people had in their hand changed dramatically? If the phones that people had in their hands could browse the internet. Not smart phones, but sub $100 phones for this.

Why would this matter?
GPRS and EDGE are dramatically cheaper than SMS (75x cheaper)
Mobile operators and banks would not own the customer due to owning the infrastructure. Anyone could reach out and find customers directly. The incumbents wouldn’t be as privelaged.
Localized creation of tools

3 main points:
Regulation. Particularly openness for non-banks to operate. Would there be a regulatory framework where this could be open for others to access and bes safe operating within? If we think that banking infrastructure needs to be openly accessible, then what is needed in the openness of mobile infrastructure?

Agents. The preponderance of Mpesa agents make a profit of $5/day. If there is limited capital in these dukas and agents, then how will he get liquidity to do it for anyone else? Maybe it can be done by extending lines of credit to the agents.

Consumers. The next round of innovation is beyond payments, but to use the wallet to store value. Who are the players that can provide this service on a safe basis? Paying for products directly would cut the cost for agents directly, and it would cut the cost of money within the system to the gov’t (2-3% of GDP). Poor people do have money, and they do save, but they put it at home in a jar, under the matress. What comes next innovation, is that the mobile needs to beat the matress

Peter Rinfretof Iris Wireless
Friction will continue to increase between operators, banks and other institutions like Western Union, etc.

The regulations and regulatory environment will change a lot for everyone. You’ll see regulations in one country that affect other countries. His example is the US is the largest remittance market in the world, and that has huge repercussions to what happens in the other countries around the world. Anti-money laundering rules will become stricter and more difficult for receiving countries to comply.

We’re not talking about a change of habit that is relatively new. This is money, something we’ve been dealing with for millenia. We’re talking about old habits dealing with money, so it will take time and it will evolve slowly. And it has to make sense within the market that you’re in. No two markets will look the same.

Michael Joseph of Safaricom
Mpesa launched in March 2007. It’s surprising to see how fast it’s grown. 19% of the population is banked, but 71% who have access to mobile phones in Kenya. The key success of Mpesa is not just good working technology, but to be successful with it you need to understand distribution. It’s not cheap. It’s not easy to put together an agent network that operates with integrity. “It is not build it and they will come.”

Customer growth is at 6.2 million customers in March of 2009 with over 11,000 new registrations each day. Trends: $1.7B moved in P2P transfers since launch. Average P2P transaction is just under 2500/= shillings ($30).

“This is what worries the banks, that we’re moving all this money around and they’re not getting any fees.” We’re not a competitor to banks, because they couldn’t operate on these small 30/= fee.

Safaricom has 300 staff dedicated to Mpesa. There are now over 10,000 agents. It’s the McDonalds effect” – whenever you are hungry there is a MacDonald’s. For us, whenever you turn around there is an agent.

“It is so important to have a regulator that is willing to take a risk with you.” It took nearly 9 months to convince the regulators in Kenya to allow them to launch Mpesa. We are treading new ground in Kenya, so having a courageous and risk-taking regulator made it possible. For money transfer we need some sort of regulation – a level playing field for others to do this a well. Regulation should facilitate and not frustrate.

“When we look back, money transfer will be the biggest thing that we ever did in the telecommunications world.”

Streetwise: A Simple Computer Terminal for Children

March 27, 2009 / HASH / 4 Comments

The Streetwise computer terminal is nearly indestructible. I saw first-hand a demonstration of a unit at the MobileActive conference in South Africa last year and was awed when the gent started jumping up and down on it. It’s made for students in developing countries by South African firm Psitek who fabricates the devices in Stellenbosch, just outside Cape Town.

the streetwise computer terminal by Psitek in South Africa

What they are doing is creating tools that might not look like the internet that you’re used to in the West. It’s lean content and services (information and communication) delivered to a lean device. For instance, there is a whole software application working on the backend to pair down content so that it’s quick to send to these devices. (ex: take 100kb of Wikipedia and strip out all but the text content – the whole article, and skip out on the extraneous images and get that file size down to 2kb.)

Why is that important? The device works off of GPRS connection to connect to the broader internet. This means it can work wherever there is a mobile phone coverage, and it works with low signal strength and it’s not nearly as expensive.

SIM card holder within the battery space in the back.
12 volt power input
5 USB connections
FAX line – low cost options for printing and scanning
64Mb of inbuilt flash memory – can extend via USB to a hard drive (and USB sticks)

Currently, the Streetwise comes in two types; the main terminal (with all the goodies) and then an extension terminal. You can connect 4 extensions to the main terminal. Cost was estimated to me at the time as $350 for the main terminal and $115 for each extension. The main cost for these devices are the GPRS module and fax interface.

If someone does a search on the device, they route all requests through Google on Wikipedia and return the first result. That’s in Beta of course, it will be more robust in the final version, and offer a few more options.

Final Thoughts

I can’t speak for it’s educational value, I’ll save that for the educators, but it is a very interesting device. The fact that they decided to go off of the widely available GPRS services and make it so light-weight and rugged is telling. It’s designed for a specific use, and doesn’t apologize for it. For me, it’s like the OLPC, I don’t know how useful it really is, but I do know that it gets computers into the hands of young children, which offers a huge return over time.

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