I met Netia McCray at Maker Fair Africa yesterday. She’s an MIT grad who’s working on a project called Mbadika (it means “idea” in the North Angolan language of Kimbundu), which is about teaching kids the basics of electronic prototyping. She does this using some very inexpensive solar-charging kits, designed to be put together and understood in an educational workshop, or on their own.
Mbadika is a new program, so they’re just getting off the ground themselves, however they’ve already taught 250+ kids in 6 countries.
As a father, I can appreciate the simplicity of this kit, having worked through some more complicated electrical engineering kits with my own children. There’s value in having something that is immediately buildable by a 10 year old that they can put to use right away. They can design/paint it how they like and make it their own.
You can help them out on the new South African crowdfunding site, ThundaFund.
I keep meaning to write blog posts on each of these reports on tech, most of them on Africa, but can’t seem to get it done. Instead, I’ll just post a link to each, a visual, and why I think it’s worth reading.
Has good information on overall usage globally, and trends. In Africa, even though they have a node in Kenya, all we’re seeing is stats on South Africa, Egypt and Morocco. However, there is a really fascinating chart by Ericsson in it on wireless usage.
The GSMA puts together some fantastic reports, due to the amount of data at their fingertips due to their association’s membership. Alongside the iHub Research team, they’ve done a deep dive into the tech entrepreneurship side of Kenya, and you can see the results here.
I’ve had a front-row seat to infoDev’s work starting and supporting places like the m:lab in East Africa. After doing it for 3 years, here’s their indepth report on what’s working, not working, how much money has been spent and what the future might look like.
Mostly useful due to the interest large corporates and banks put in McKinsey, this report makes that the greatest impact of the internet in Africa is likely to be concentrated in six sectors: financial services, education, health, retail, agriculture, and government. What they’ve done particularly well is gather a large range of numbers from diverse and various sources to make better sense of what’s going on.
A Kenya mobile money infographic (2013) by the GSMA
Interesting figures for 2013:
Average value per transaction: $29
Percentage of GDP transacted: 31%
By April 2013 Mpesa:
Averages 142bn Ksh transacted per month. ($1.67 billion)
Has a total of 56 million transactions per month
Has 23 million customers
Has 96,000 agents around the country
Also in 2013, the Kenya government levies a flat tax of 10% on all Mpesa transactions. Safaricom also raises charges to counter this. All users now pay more, but it’s hidden so that you don’t see the charge, unless you do the math on the balance remaining after you send funds.
There’s a Ghana email list of tech guys that I’m on. Opening my email this morning, I was pleasantly surprised to see that a Ghanaian team was pitching last night at TechCrunch Disrupt.
Saya is an app for texting. That mixes SMS, Facebook chat and hyperlocal findability to get in conversations with those near you. They’re on Android, Blackberry and waiting for their iPhone app to be approved.
Robert’s pitch revolves around the 5.8 billion NON-smartphones in the world, and how that market has needs that need to be addressed by apps like their own. Ways to communicate via SMS in a much more elegant way.
Saya isn in a tough position, trying to get US and European-based investors to think that anything to do with old tech like SMS can be big is quite difficult. Their paradigm is set in the West’s way of thinking about being intoxicated the newest tech, not understanding how much of the world more fully uses each technology before discarding it.
Without knowing anything about how many users Saya has, I can say that it looks like an app that will really work in Africa and therefore many other parts of the world. Just looking at the app, it seems that they have a strong focus on product, and are paying attention to things like design details that really do matter.
99% of Kenya’s 6.5m internet users access it via mobile, of which Safaricom owns 77% marketshare.
In Kenya, when you buy a 1.5Gb internet bundle from Safaricom you pay 1000ksh (~$12). You’ve paid for the data, and there is no additional cost to Safaricom if you were to use that data today or a year from now. The whole concept of data bundle expiry is ridiculous, as noted by Safaricom CEO Bob Collymore when he visited the iHub:
“When you go into a petrol station and fill up your car, does the owner of the petrol station tell you to bring it back on Wednesday to take back what’s left in the vehicle? Of course not. So I ask, why the hell are we doing that?”
Bob goes on to say that he isn’t going to be an apologist for this practice, that there is a problem with leaving the data there ad infinitum. That 60 days is probably too short and that Safaricom does need to change how they handle this.
Until recently they just held your data hostage. If your data expired, you could recharge with just a few shillings of data, this would re-trigger your “old” data that was past the expiration, and have that available to you again.
Today, it is “data gone, money stolen” after expiration. They cut you off if you haven’t used all of your internet bundle in the nominal 7-90 days, no matter how much is remaining.
I brought this up with Bob Collymore, and his chief executives when they visited the iHub earlier this year (see video), at which point he admitted that it was indeed a dubious practice that would be changed to something much more open to users. You’ll see what Bob says at the 1:17 mark in the video below.
Here Bob is on video speaking to this point (I’ve saved the link to go to the right point in the video):
The other day I caught a Tweet from Sunny Bindra about some surprising changes:
Safaricom is actually very responsive on Twitter, probably the best big company on social media in the Kenya. They followed up with Sunny with this:
So, Safaricom didn’t broadcast this significant change in the way data bundles are handled broadly. Apparently, “publicized on our website” means quietly posting a PDF somewhere in the morass that is their website to notify the data using public of the changes.
If you follow the links to the PDF, you’ll find the following:
What is the Validity period?
This is the time frame that you have to use the bundles, when this period elapses it means that any remaining bundles will have expired and will not be available for use.
(Note: there is conflicting information on how long bundles will last, you can only find out by topping up a bundle. I did this for 1.5Gb and found that it’ll last 80 days, not the 30 that they say in the PDF. I don’t know if it’s more/less time for other bundle amounts.)
It’s in Safaricom’s best interest for you to keep buying more data, over and over, even if you haven’t used it. It costs them nothing to let you use it over a longer period of time, or to keep recharging it.
I’m disappointed with Safaricom, especially after Bob Collymore came to the iHub and said he was going to fix this, not break it further.
This is an outright fleecing that the Safaricom team should be questioned on. In a country where they are the monopoly player on the primary source for people to access the internet, this makes them appear like a bad actor.
Basically, we’ve gone from a bad system that was promised to be made better, but which had a corrective option, to a worse system that has no option.
Other Safaricom Data Miscellany
While I’m at it, let’s go ahead and talk about a few other ways that the data service that Safaricom raises the bar for bonehead usability: buying data bundles themselves.
Case 1: You used to be able to send airtime to a SIM card on your Safaricom modem. Then, using the inbuilt Safaricom Broadband app, send an SMS to 450 with the amount of the bundle that you wanted to buy, now 450 only seems to work for checking your balance.
With the new service updated in the aforementioned PDF you can now only use the USSD code to update it.
Solution now? Take the SIM card out of your modem, load it in your phone and do the USSD code. Once confirmation is received, switch that SIM card back to the modem.
Yes, that’s correct. Instead of being using the software that comes native with your modem, you now have to use a phone to update your bundles. Why would you change your system to not work with everything that people use? I’m quite curious actually. I can’t understand this decision from a either the business or the product side at all.
Safaricom wanted to make it easier for people with modems, iPads, Android tablets and smartphones to be able to update their bundle (good idea). They created http://portal.safaricom.com/bundles for this purpose. Let’s say you’re out of data, you have no credit on your phone. How do you get to this page?
There are none. You’re stuck because this page isn’t zero-rated. This is mind-boggling in it’s oversight. I have no data, therefore I cannot go to your page to load more data. Seriously… who is the genius that thought this up? Or, probably more accurately, what form of bureaucracy is in place that allows this mediocrity to persist?
Further, if you’re Safaricom who controls 77% of the consumer internet access in Kenya, why wouldn’t you zero-rate your whole Safaricom.com domain and make it free for anyone to surf, even if they don’t have a single shilling on their phone?
Then there’s the tendency toward what I initially saw as excess diversification. My think-tank colleagues and I were stunned to see how many concurrent businesses the typical entrepreneur owns and manages in Africa. One famous waste utility entrepreneur had about 66 different businesses. On the whole, the businesspeople we studied appeared to run an average of six businesses.
Twinpine: Nigerian Mobile Ad Network
Forbes does a piece on a startup that I hadn’t heard about yet from Nigeria, Twinpine, who is setting up a successful mobile advertising network.
Kenya: Big vs Small
Big international firms (think IBM, Dimension Data, etc.) are beating out smaller local firms to lucrative government contracts, which makes up a significant portion of the annual tech spend in the country. The Nation opened up this debate with this article, that then went on to have a real face-to-face debate by the end of the week.
InMobi Mobile Media Consumption Research Q4 2011 – Global Results
“Nearly every start-up working in payments is simply creating a new front end for your credit card. Thatâ€™s not a small thing; we need new ways to use our credit cards. But we shouldnâ€™t forget the true winners in this new marketplaceâ€”whatever innovations we see in payments over the next few years, thereâ€™s a very good chance that most of the rewards will flow to Visa and MasterCard.”
This is true… if you live in the US or Europe.
It’s also why Mpesa is so important, as it represents a new form as well as a new source.
Mpesa destroys the paradigm of payments as we knew it
It’s a good thing that Mpesa happened in Africa. It offered a new way of thinking about money and payments, without the legacy baggage of banks and regulations meant for another century. The powerful banking interest were held at bay, not by great power, but by indifference – this is Africa afterall, who cares about this market?
With Mpesa, and without a bank account:
People can send and receive money.
People can store up to $1000 in the system, creating a pseudo-savings account.
There are no credit card companies involved.
There are no banks involved.
Mpesa is big now too, big enough to garner a lot of attention from the the credit card companies and banks. M-PESA has over 14 million users in Kenya, 9 million in Tanzania, and hundreds of thousands in Afghanistan and South Africa now too. It now processes more transactions domestically in Kenya than Western Union does globally, somewhere in the range of 25% of Kenya’s GDP is transacted on it.
The banks actively lobby against mobile-based payment and money systems now, globally, as it constitutes a massive competitive threat that they are unable to compete with due to a multitude of reasons, one of which is simple transaction costs. The credit card companies are watching closely too, and moving. Mastercard and Visa both are working on mobile offerings, seeking to link with mobile operators in order to bypass a would be competitor.
Mpesa isn’t perfect – we need a payment system that works across mobile operators and can be synced (easily) with any bank, if needed. While it could improve, it’s still worth pointing out the really big missed opportunity here is by Vodafone. Like I’ve said before, if Mpesa was rolled out at as an independent company led by Michael Joseph, it could battle the credit card companies of the world and unseat them in many markets.
What’s interesting to me is that in the arguments in the US and Europe on “the future of payments” the real innovation, with real numbers, isn’t being mentioned.
Mark your calendars, buy your tickets, submit your applications!
We’re ramping up to the Pivot East pitching competition, where the best startups in East Africa come to show what they have, pitch their startup to investors, media and the judges for a chance to win the prize money.
Pivot East will be held at Ole Sereni Hotel in Nairobi, June 5th and 6th. Last year we had over 100 applications for the 25 slots, and we’re expecting even more after seeing how well Pivot25 did last year (writeups by TIME Magazine and CNN). Last year we saw startups from Kenya, Uganda, Rwanda and Tanzania, and this year we’re hoping to see some from South Sudan and Somalia as well.
As last year there are five categories, each of which will have five startups that will pitching in them. If you think you have a prototype, a deck and a business plan to wow everyone with, let’s see it. Applications are open.
Business and Resource Management
Getting more information
Pivot East is put on by the m:lab East Africa, an incubator for startups in the mobile apps and services space. All profits go to support the facility. This year support comes from Samsung, and we’ll be announcing a few more big names in the coming weeks. If you’d like to be one of them, contact us.
If you have any questions, we’re having a meeting a Baraza at the iHub on Monday the 6th of February from 2.30pm to 3.30pm. If you’re a startup wanting to know more, or are media or an investor, come by and talk to the organizing team.
The mobile web revolution has already spread around the world. The phase of it that we live in is where we see the internet hitting critical mass based on the availability of web connectivity on mobile devices. Data is widely available, and the costs continue to decrease at an alarming rate. We’re seeing the disruption this is causing already, from businesses to consumers, and within the political structures of entire countries.
Dunia Media, out of Switzerland, has put together a good video showcasing this change.
Interestingly enough, this video showcases iCow and M-Farm, both providing agricultural data to farmers, not in a browser, but as text or voice messages. One could think the title to be a tad misleading, as the “mobile web” term is largely applied to web interaction on a browser on a phone.
What I like about this take though is this; the internet allows for a paradigm that doesn’t care what device you have, whether PC or phone, as long as you have a database and a channel you’re in the game. As long as the device has some type of text or voice communication it is suddenly a read/write platform.
What we’re seeing in applications coming from Africa is a way to stretch the use-case of “old” messaging technology like SMS, USSD or voice into new ways of data transfer that challenge Western conceptions of what the internet is.