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WhiteAfrican

Where Africa and Technology Collide!

Page 12 of 109

20th Century Parallels

At the beginning, they shared an excitement about technology, an optimism for the future, and even a certain clumsiness in getting down to business.

While that quote sounds a lot like our current state of affairs in the technology space, it’s not. It’s from a good story on how the movie and film industry came to be in the early 20th century.

The “Mobile Web” as text and voice

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.

THE MOBILE WEB from Duniamedia on Vimeo.

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.

Google Plays Dirty in Kenya

There is a damning post out by Stefan Magdalinski on some unsavory business practices being done by Google Kenya against Mocality. Mocality designed a fantastic crowdsourcing tool to create their mobile web-based business listings directory back in 2010. There is undeniable proof that Google’s team here has been systematically calling businesses in the Mocality business directory in an effort to poach them to their own “Getting Your Business Online” program for Kenya.

The long and short: Mocality claims Google Kenya is using its database to sell a competing product.

For some context, the Google team in Kenya has always been above board. They are genuinely good people, so seeing this happen is incredibly surprising. I’ve been trying to get in touch with them since yesterday when I first was made aware of this situation, but have had no response to any of my queries.

The problem here is that the sting put on by Mocality is so complete. They have all the forensics and even voice recordings to show what Google is doing. I want to believe that Google has an answer for this that makes sense.

UPDATE: Google has owned up to this, saying:

“We were mortified to learn that a team of people working on a Google project improperly used Mocality’s data and misrepresented our relationship with Mocality to encourage customers to create new websites. We’ve already unreservedly apologised to Mocality. We’re still investigating exactly how this happened, and as soon as we have all the facts, we’ll be taking the appropriate action with the people involved.”

Kikuyu Grass and the Macro / Micro Problem

Kikuyu GrassKikuyu Grass comes from East Africa, and is heavily used in sporting fields and schools around the world due to it’s hardy nature and ability to repair from damage quickly. It’s also tough, aggressive and spreads like a weed due to how it sends out long shoots. If you know this grass, you aren’t surprised to see one “runner” of Kikuyu Grass dropping in and out of the ground over a 20-30 meter area.

I like the analogy of Kikuyu Grass to discuss an issue that I see as a major issue in certain industries in regards to how technology solutions get critical mass and go mainstream, or don’t.

The Macro and Micro Problem

I call this a “macro and micro problem”, where you have to solve a big overarching issue of scale at the same time as solving needs for individuals at a very hyper-local level. This is a particularly difficult problem for bootstrapped startups to manage, because they don’t have the money or access to infrastructure to scale wide, even though they might have an excellent micro-level solution that individuals want to use.

There are two industries in Africa that I see this problem at it’s greatest, though I’m sure there are more; agriculture and healthcare. In both agriculture and healthcare you need to serve the finite needs of a farmer or someone who is sick or injured, yet it’s difficult to provide that any one solution to millions of people. Academically, you can do it, it’s easy to come up with a solution sitting in a room somewhere with a whiteboard. It’s also feasible to roll out a pilot project and make it work well in one area.

What’s difficult is replicating that same working idea at scale. This only gets more difficult as you take in the hyper-local technology demands and cultural context across a country. In fact, there are few organizations who have figured out how to roll out new technology at a national level, the best being large corporations such as bottling and soap companies, and of course the mobile network operators.

Let’s look again at healthcare. There are some great solutions coming out of the tech community for problems surrounding patient information, clinic and doctor information, medicine supply chain management, drug reminders and more. Some are at pilot stages, but none have critical mass at a national level. They simply can’t build the infrastructure fast enough, can’t market widely enough and aren’t trusted by everyone, everywhere yet. Can they do any of these? Yes, but it takes funding and great execution.

Examples from the payments space

The payments industry is on that has been able to solve this from both a macro-to-micro level, and also from the micro-to-macro level.

Macro-to-micro
The too often talked about mobile money solution in Kenya, Mpesa, is actually a really good example here. The product innovation came from outside the company, but the execution on it came from inside, as did the strategy to focus on getting thousands of Mpesa agents going all over the country. This focus on hyper-local agents solved the micro problem, and the national infrastructure and brand of Safaricom allowed it to proliferate and gain trust.

Micro-to-macro
PayPal began as a solution for small businesses or individuals (and grew largely through use on eBay) to accept payment via credit card, which was expensive or hard to do back in the early 2000’s. They were small, serving individual needs, but were able to grow their brand and scale their infrastructure to what they are today due to large VC investments.

Outstanding Questions

The question is, are there ways to solve this problem in healthcare and agriculture?

In agriculture, how will the Esoko‘s and M-farms of the world do it? Can they do this on their own, will it have to be take in by a larger company to hit critical mass?

In healthcare, will MedAfrica be able to get enough data and downloads for mainstream use? Will mPedigree and Sproxil be able to scale their counterfeit drug solutions?

I think these types of startups can, though some will have to broker partnerships with larger organizations, like the government or the mobile operators to do so. Each of them will also have to work very hard in order to meet the demands of putting a new technology solution in play at a large scale.

Like Kikuyu Grass, which has many touch points to the ground as it’s runners spread across and takeover a whole field, startups trying to solve problems in a big industry vertical need to have many local touch points as well.

What’s on Tap for 2012

2011 was a good year – a great one even. Here’s why:

  • iHub reaches one year, clocks over 6,000 members and more than 100 events. Companies were founded, business got funded and many companies found CTOs and employees through the network. (What makes the iHub work?)
  • The m:lab (East Africa’s mobile lab) was founded, with a testing center, 7 companies incubating and 2 classes of mobile app development trained.
  • AfriLabs was founded and now has grown to see over 15 labs in Senegal, Uganda, Kenya, Nigeria, Ethiopia, Zambia, Cameroon, Ghana and South Africa.
  • The first Pivot pitching competition and conference was a massive hit. Look for regional versions in South and West Africa in the coming years.
  • Ushahidi has over 20,000 deployments in 132 countries, the community grows.
  • Kenya leads an open data revolution in Africa, and we also held the IGF which brought many big names into town.
  • African tech startups start to get some real attention globally.
  • Massive growth in bandwidth mixed with lower costs on smartphones, internet itself and mobile services as well as increases in internet and mobile users across the continent.

PivotNairobi 65

2012 looks to be even better

The past few years have been about building an infrastructure that improves the chances of the technology startups in Africa to succeed. Seeing this buildout in action in 2011 was exciting, but it should be recognized for what it really was: a setup for 2012 and beyond.

You see, all those labs and hubs around the continent, the startups and the media coverage? They’re all about getting attention and increasing the awareness of the pent up startup potential in Africa’s technology space. Media and funders both have a bigger target to hit when looking for entrepreneurs. We were setting the stage to broaden the base of our startup pyramid: finding the local innovators and entrepreneurs and getting more of them funded.

Where we stand now is an order of magnitude beyond what we had just a few short years ago. In 2006 if you stated that you want to be a web or mobile entrepreneur you weren’t taken seriously. Five years later and it’s a legitimate position to take. We now have some successes to point out (think mPedigree, Mxit, PesaPal, Sproxil and Ushahidi etc), which make it a lot easier for the new breed of startups to get started.

This is what we’re aiming for: a playing field that allows more entrepreneurs to startup, get some seed funding and fail fast if necessary. The ones who make it, the ones who get beyond the startup phase and become real companies with cashflow and employees, are why this is being done. This will make some people a lot of money, and it will make millions of others lives a lot better because they have better and more relevant products locally.

2012 is set. It’s the year where we grow the seed funding and early stage venture capital investments so that five years from now we have the ecosystem needed to support a much larger investment and startup community.

My prediction is this: In 2012, if you have a startup in one of the main tech cities in Africa and are unable to get funding, it is due to one of two things: Your idea isn’t viable or you don’t know how to pitch.

The funding is coming, and it’s up to you to create a business and make it succeed.

(To do this, I suggest you read 2 posts on the Afrinnovator blog: “15 Skills African Tech Talent Must Acquire in 2012” and Mbwana Alliy’s “12 Predictions for African Tech in 2012“.)

Our Voices Revolutionize the World

[The following is from my Institute of Medicine Talk on communications technologies for violence prevention in Washington DC today. A good background paper to get started on the context of tech in violence prevention is found in this PDF. ]

Something has changed over the last decade.

New technology is lowering barriers. For everyone, and everything. It is disruptive just by existing and by it’s penetration into every corner of the world. We’re talking mobile phones, social media, open data, inexpensive mapping and of course the internet itself.

It can be used just as easily for good as for bad, like any other tool and medium before it. However, the biggest difference in our new technology space, is that what before had at least some gatekeepers, now has few or none.

Inefficiencies in older industries or organizations are areas ripe to be disintermediated in our day of new tools and democratizing of information. Think big media, government, the humanitarian field and even the medical and healthcare industries. Many of these are centralized, top-down information systems which are being forced (or will be forced) to change, or become obsolete and die out in their current form. Not because what they represent is bad, but because how they do it is no longer viable.

Legacy systems and processes were built for a use case that is often decades, if not centuries, old. Internet and mobile phone technology bring new efficiencies and lower barriers. At the very least we can expect new technology to augment what’s there, if it doesn’t displace it entirely.

We’ve see this rippling through the media world for the past few years, large magazines and newspapers are going out of print, major TV networks are struggling. New technology is changing the news paradigm.

We see it in government, from fund raising to how wars are fought, and especially to how a faster moving populace interacts with a slower, archaic and sometimes rotten system that rules them. New technology makes a nimble adversary out of the people that the government is sworn to serve.

We see this in the humanitarian space, where large, slow and ungainly organizations can’t seem to coordinate the resources to meet their mandate, yet raise enough money to keep themselves in business. New technology allows the affected people to self-organize and solve their own problems, and leads us to question why some organizations exist at all.

Let me give you a finite example of this, from my own organization, Ushahidi.

Ushahidi was born out of the post-election violence in 2008. In that first week, a number of us came together as an ad hoc group of volunteers and in 3 days created a website that allowed anyone in the country to send in text messages, emails or web reports on problems happening in their area and we mapped them and put them on a timeline. It was simple, rudimentary even, but it worked.

It worked because people were looking for an outlet, they wanted to let people know what was happening to them.

What we’ve seen since that time is that Ushahidi has proliferated, not because of the technology, but because of the use cases that it makes possible. It is a free and open source platform for gathering and visualizing information and it has been used for everything from disaster response to election monitoring, citizen journalism and community engagement.

There are now over 20,000 deployments of the Ushahidi platform operating in 132 countries. Our goals for Ushahidi are simple; to disrupt the way information flows in the world by providing the best tools for democratizing information with the least barriers to entry.

In the beginning this meant take what took us 3 days to build and make it available to others so they didn’t have to start from scratch. Something that would take them only 3 hours to deploy. Last year we dropped that to 3 minutes with the launch of Crowdmap, our cloud-based version of Ushahidi.

We’ve also created many mobile tools, from an Android-based SMS gateway to customizable iPhone and Android apps.

3 lessons we learned early:

  • We didn’t have the credentials. None of us were humanitarians, we just cared about our home and wanted to do something.
  • We had no funding. It wasn’t until 4 months later that we formed Ushahidi as an organization, and 4 months after that when we received funding. That didn’t stop us from doing something.
  • We had no time. If we had thought long and hard before we built our system, it probably would have been too complicated and wouldn’t have worked. We also might have thought of a more sayable name…

All of the lessons that we’ve learned through our journey are baked into our organizations culture. We question assumptions and we treasure disruption. We’re willing to take risks that leave us open to failure, in our effort to change the way information flows in the world.

There’s a term that I came across last year called “White Space“, and it’s best definition is:

“…where rules are vague, authority is fuzzy, budgets are nonexistent, and strategy is unclear…”

The most innovative ideas come from this white space; internally within organizations, in the startup space and in society in general. At the end of the day, much of the white space definition looks a lot like where I live and work in Africa. And I think it’s why its sometimes easier to come up with innovative solutions there, and why we’re going to see an increasing number of solutions to the problems in the West coming from places that look a lot like Africa.

The best disruptive ideas come from the edge. So, let’s look at the edge, cases from around the globe, for some examples of how technology is being used to make an impact on violence prevention.

  • HarassMap (Ushahidi + FrontlineSMS) – Egypt
  • BullyMapper (FrontlineSMS + Ushahidi) – Australia
  • Human Rights (Ushahidi) – Saudi Arabia by Amnesty Int’l
  • YoungAfrica Live (Internet via mobile) – South Africa
  • YETAM (FrontlineSMS + Ushahidi) – Benin by Plan
  • Apartheid Watch (Ushahidi) – Israel and Palestine
  • Hollaback (Phone cameras and a website) – US, India, Mexico and Argentina
  • PeaceTXT (SMS and trained people) – US
  • Maps4Aid (Ushahidi) – India
  • Take Back the Tech (Ushahidi) – Global

“Across the globe—and without any organizing or mobilization by NGOs or watchdogs—people confronted with threats to their rights are communicating out those experiences, in effect reasserting agency over their own rights protection.” – Amnesty International

Those are all exciting examples, showing what can be done with new technology. Suddenly there are no barriers to entry, anyone can take part, and it doesn’t require that someone have authority to begin. It’s just a matter of figuring out what you want to do and galvanizing a community to take part.

Is technology a panacea? Not at all.

As my friend Clay Shirky says, “The technology only becomes interesting when it is no longer interesting to technologists.”

We use a graphic in Ushahidi to remind users of our tools that the technology is only a small part of any solution. We say that 90% of the work is non-tech related, and can take the form of organizing, outreach, branding, translation, etc.

It’s a reminder to us as well, that we need to focus on creating tools that augment human activity and get out of the way as much as possible. That, in the end, is what makes the earlier examples so interesting; they worked because they used the simple tools available in people’s pockets to interact and bring attention to a much larger population, audience or intermediary.

Just this week a new site was launched, like it’s predecessor in Egypt it’s purpose is to draw attention to the harassment that women get, this time in Ramallah, Palestine. Residents of Ramallah, as well as staff from Palestinian women’s organizations and civil society came together and did something, they built Streetwatch. It was self-organized, it emerged from local needs and tools were found that could suit them.

“They have an opportunity to help themselves and other honest citizens of Ramallah to isolate the problem areas and say no to sexual harassment.”

This is the new story of our time, that:

“Our voices revolutionize the world.” – David Kobia, Ushahidi

Those 5 words. That simple statement.

The revolution is here, you’ve watched it shake industries, rock countries and effect your own community – and what you’re seeing is only the beginning of the massive changes sweeping across the world.

It’s not complicated. It’s the effect of technology democratizing information and changing the way it flows in the world.

It’s simple solutions, by unqualified but driven people, like the communities in Ramallah, Egypt, India and even here in the US, that provide a foundation for the changes that we’re seeing. It’s ordinary people, using simple technology to organize themselves and take care of their own problems.

Your task is to look closely, to understand the basics and then figure out how to use these new tools at your disposal to make a difference. In your case, to specifically prevent violence and help those who have been hurt.

Thoughts on Africa’s Mobile Operators and Disruption

Generally speaking, mobile network operators (MNOs) were highly disruptive in the 90’s, but have continued to decrease in this over the last decade. Operators are no longer the offensive, attacking force of yesteryear, instead they’re putting up barriers and defensive walls trying to protect what they have and hide.

Instead, the disruption comes from the open web. Whenever the operators put up a blocker to what users want, usually in the form of price or access to their infrastructure, the web finds a way of displacing them. Examples abound in location based services, text messaging, video and photos.

There’s a reason operator revenue is shifting away from voice and SMS towards data. The products that got the operators here are receding in relative value. The user wants what’s available in the open web, and that’s just not found, or being provided, by the operators.

So, what is an MNO to do?

Change. Disrupt someone else. Innovate.

One of the biggest disruptors, even in this decade of MNO mediocrity, has been Safaricom – the 800lbs gorilla in my own back yard. They’ve invested in new technology, products and business models like few others, and are reaping the rewards of those strategic moves.

Do I like having a monopoly player in my market? No.
Do I feel bad for the other MNOs (Orange, Airtel and Yu) who are crying now? No, they did this to themselves.

Let’s dig into their golden-child, Mpesa, the mobile peer-to-peer payment system that’s did $3.15 billion in transaction in just the last 6 months(!). How do you know they succeeded in innovating? Well, the easy answer is looking at their profitability and user tie-in that they get from Mpesa. Look more closely and you’ll notice the other signal, all of the bank lobbies in other countries have put up huge walls, blockading an aberration like Mpesa from having sway in their country.

[Sidebar: A warning to everyone who wants to see innovation in their country. Over regulation of telecommunications and banking strangles it. South Africa and Nigeria are cases in point.]

So, Mpesa sounds to everyone like a huge success story. It is, and it’s not. What we think of as an amazing disruptive product is really only halfway up the mountain. There are too many corks being popped while money lies sitting on the table. This stems from 2 main things, which seem to be an issue of Vodafone primarily, since they own the IP for Mpesa and own a 40% stake in Safaricom:

  1. The lack of leadership by Vodafone to NOT open up an API that other businesses could build on and increase usage. They’ve stifled innovation on their own product.
  2. Their lack of vision in the global payments space. Their shortsideness in not spinning out Mpesa as its own company to take on Visa and Mastercard directly. This was one of the few products and business models that could do that.

More MNO Innovation

So, Safaricom might be stifling its own product, but they’re still not short on disruptive features and products. They do fall prey to bureaucracy and political infighting, but they’re also one of the most aggressive MNOs globally, always trying new things. Three more examples:

  • Creativity in 3g data pricing and accessibility down market.
  • First-movers in 3g and exceptional data coverage countrywide.
  • Okoa Jihazi, their product that gives a loan of credit from the operator to users who are tight on cash.

Other examples of MNOs who are innovating in Africa are:

Airtel Madagascar working with Movirtu with their new Cloud Phone, a way for people to share a phone, but keep the SIM card in the cloud.

MTN, testing Mobile Phonebook by FeePerfect out of Cameroon, a product that puts a phone book into everyone’s phone.

Small + Big

Clearly, innovative products can come to market through MNOs. What’s the common denominator on these products though? Most of them came from small companies and were then incorporated into the MNO.

Ideas come from outside, they come from the edge. Scale comes from inside, from the massive infrastructure provided by the MNO. They have to work together to succeed.

I work with, and talk to, hundreds of entrepreneurs. They have ideas, prototypes and products that just might be what the users want. They lack the access to the infrastructure to roll it out.

As an MNO, you boost your chances of success in this increasingly chaotic space by not walling everything off, but by opening it up.

Infographic: Mobile Phones in Uganda 2011

The iHub Research team has been at work pulling together the mobile phone stats for Uganda and putting it into an infographic. It’s good to see the 41% density of mobile phones and impressive numbers starting to show up from the 1 million users of Uganda’s MTN (60% market share) Mobile Money solution.

So far they’ve done Kenya and Uganda, next up is Tanzania (I believe), so keep an eye on the iHub blog for more.

The Subtle Condescension of “ICT4D”

I have cognitive dissonance over the term “ICT4D“. The term “ICT4D” is confusing, hypocritical and has a whiff of condescension that makes me cringe.

As I understand it, it’s what NGO’s do in places like Africa and Asia, but if the same things are done in poor communities in the US or Europe, it’s not called ICT4D, it’s called civil society innovation or a disruptive product.

I’ll be the first to say that I think more communications and technology tools in the hands of ordinary people is good, it’s what we need. For this reason I didn’t come down on the OLPC project, not because I agreed with it’s strategy or reason for existing, but because I simply think that getting more computers in kids hands is good idea.

So, let me be clear: I’m not against the practice of getting more ICT into Africa, I’m just don’t appreciate the condescension and hypocrisy that the term ICT4D comes with, and I’ll bring up the reasons that it actually constrains the technology innovation culture in Africa.

What do we really mean by “ICT4D”?

Ken Banks is doing a fun “ICT4D Postcards Project” where he’s asking people who work in that field to send him a picture with a note of why it matters to them. Though a fun project, I hesitated when asked to participate, because I’m particularly put off by the terminology. But, I did one, and here it is:

A few of the UN cars outside UNMIL in Liberia

“ICT4D” represents a mental roadblock. A term that brings as much baggage with it as a sea of white SUVs, representing the humanitarian industrial complex’s foray into the digital world. It means we’re trying to airlift in an infrastructure instead of investing in local technology solutions. Like the SUVs, it’s currently an import culture that will not last beyond the project’s funding and the personnel who parachuted in to do it.

If an ICT4D-type project is done in a poor part of America, is it still considered ICT4D?

That’s the question that sums up the hypocrisy of this term to me more than anything else. Here’s a an example of what I mean, on a project that I really like and am behind: PeaceTXT. It’s using mobile phones and SMS to help with violence interruption in Chicago.

Is that ICT4D? If it was deployed in Johannesburg or Mogadishu it sure would be labeled as such.

Is ICT4D basically branding for emerging market tech? It seems like it’s a way to name interesting and innovative products from Africa and Asia as something different than their counterparts doing the same thing in the West. In the West they’re called a disruptive initiative or civil society product.

If an African company creates a product that gets millions of Africans using technology to communicate better, which seems to be the very definition of ICT4D, are they automatically that? Mxit does that… What are they?

Let’s say you’re Kilimo Salama, run by my friend Rose Goslinga, which is a micro-insurance program designed for Kenyan farmers, and a partnership between Syngenta Foundation, UAP Insurance, and Safaricom. You charge, make money and yet are helping both small and large farmers alike. Is this ICT4D?

A roadblock to African tech

I was recently discussing this term with one of my Kenyan tech friends, where he stated, “I always picture a team from the UN putting up toilets in Uganda when I hear of ICT4D.”

Uganda: poster about UDD toilets

That’s one of the key problems that the ICT4D space, because to an African it comes with all the baggage of 60+ years of failed aid and development work on the continent. It triggers that begging bowl mentality, instantly stripping the dignity away from the initiative.

It also feels like this is how international NGOs are trying to stay relevant, by creating a new department and new initiatives that the big funders will buy into and support (themselves to stay relevant). Ask yourself, how many ICT4D projects in Africa are more than pilot projects? How many are just Westerner organizations parachuting in, which have no hope of staying alive beyond the time and funds put in by their organization? Sounds like the same old “aid story” to me.

That might be annoying, but the actual problem with this is twofold.

First, the African technology startup scene is young, but it’s ready to be treated as a real industry with real investors looking to make real returns. When the people who are doing business and making money in African tech get a sniff of an “ICT4D” project, they immediately dismiss it – labeling it as a special needs project where the regular rules don’t apply.

A startup company who is trying to create value and make money, but doing so with what outsiders view as poor or disadvantaged communities, is often pigeonholed internationally as ICT4D. For instance, is Esoko the money-making agricultural product from Ghana, which is now in a dozen countries, an ICT4D company? How about if a company started off by being used in Africa, but then their product went global – such as with Ushahidi?

Second, the funds and work put into this space by the NGOs are creating a false floor in the economy. They’re undermining the community of tech entrepreneurs who could be building the same products and services and charging for it, just like we’d expect any company in the West to do if there was a valuable service worth paying for. If it’s a service that should be supplied by the government, then they’re short-circuiting those responsibilities and subsidizing actions that subvert the public offices away from their duty.

Let’s say, for arguments sake, that the only way to get a much needed project going is to get a Western team in-country to start it. Is there a reason why ICT4D projects are slow to get local ownership, management and team members? Is this technology tourism and fabricated externally run projects, created because doing work in Africa is an adventure?

In Closing

What I’m hoping to get across is that we’re doing ourselves a disservice with this terminology and that it has a negative perception in the tech startup culture in Africa. Technology is about overcoming inefficiencies in the system, and products succeed because they solve real needs within communities. In Africa, as in the West, some of these solutions are for-profit and some not-for-profit. It’s important to invest in the local startups involved in trying to solve these problems and come at it from a more objective view, instead of labeling innovative technology solutions from Africa automatically as ICT4D.

We have to thinking less of ICT as something that’s about development, and more of it as a commercial venture. We need more focus on ICT4$ than ICT4D.

Africa: Turning the World Upside Down

Whitespace in business is defined as a place, “…where rules are vague, authority is fuzzy, budgets are nonexistent, and strategy is unclear…” It’s the space between the organizational chart, where the real innovation happens. It’s also a great definition for what we see in Africa, and it’s the reason why it’s one of the most exciting places to be a technology entrepreneur today.

I just finished with a talk at PopTech on Saturday where I talked about “The Idea of Africa” and how Western abstractions of the continent are often mired in the past. It’s not just safaris and athletes, poverty and corruption – it’s more nuanced than that.

Today I’m in London for Nokia World 2011 and am speaking on a panel about “The next billion” and how it might/might not turn the world upside down. In my comments tomorrow, I’ll probably be echoing many of the same thoughts that came out over the weekend at PopTech.

Here are a few of the points that we might get into tomorrow:

Horizontal vs Vertical scaling

I talk a lot about this with my friend Ken Banks, where we look to scale our own products (Ushahidi and FrontlineSMS) in a less traditional format. As entrepreneurs you’re driven to scale, but our definition of scale in the West tends to be monolithic. Creating verticals that are incredibly efficient, but which decreases resilience.

In places like Africa, we have this idea of horizontal scaling, where the product or service is grown in smaller units, but spread over multiple populations and communities. Where a smaller size has its own benefits.

In this time of corporate and government cuts, where seemingly oversized companies are propped up in order to not fail, there are some lessons here for the West. We shouldn’t be surprised that the solutions to the West’s problems will increasingly come from places like Africa.

Instead of thinking of Africa as a place that needs to be more like the West, we’re now looking at Africa and realizing the West need to be more like Africa.

Reverse distribution

Will we increasingly see a new set of innovative ideas, products and services coming from places like Africa and spreading to the rest of the world? Why is Africa such a fertile ground for a different type of innovation, a more practical one – or is it?

Disruptive ideas happen at the edge.

Africa is on the edge. While the world talks at great length about the shifting of power from the West (US/Europe) to the East (India/China), Africa is overlooked. That works in our favor (sometimes).

A couple of the ideas and products that have started in Africa and been exported beyond the continent include; Mpesa, Ushahidi and Mxit.


Mpesa – the idea came from Vodafone, but product met it’s success in Kenya. Over $8 billion has been transferred through it’s peer-to-peer payment system. Vodafone has failed to make the brand go global, but the model itself is being dissected and mimicked the world over.


Ushahidi – we started small, from Kenya again, and driven by our Crowdmap platform now have over 20,000 deployments of our software around the world. It’s in 132 countries, and the biggest uses of it are in places like Japan, Russia, Mexico and the US.


Mxit – the famous mobile chat software from South Africa has 3x the number of Facebook users in that country, and has over 25 million users globally.

Like we see at Maker Faire Africa, these innovative solutions are based on needs locally, many of them due to budgetary constraints. Some of them due to cultural idiosyncrasies. Often times, people from the West can’t imagine, nor create, the solutions needed in emerging markets, they don’t have the context and the “mobile first” paradigm isn’t understood.

A good example of this is Okoa Jihazi, a way to get a small loan of credit for your mobile phone minutes when you’re out of cash to buy them, from the operator. They’ve built some safeguards in to protect against abuse, such as you have to have had the SIM for 6 months in order to get the service. It works though, because the company selling it (and many of the mobile operators do across Africa) understands the nuanced life of Africa.

We hold on to technology longer, experiment on it, abuse it even. SMS and USSD are great examples of this, while much of the Western world is jumping on the next big technology bandwagon, there are really crazy things coming out in emerging markets, like USSD internet, payment systems, ticketing and more.

Throughout the world, the basic foundation of any technology success is based on finding a problem, a need, and solving it. This is what we’re doing in Africa. We have different use cases and cultures, which means that there will be many solutions. Some will only be valuable for local needs and won’t scale beyond the country or region. Others will go global. Both solutions are “right”, it’s not a failure to have a product that profitably serves 100,000 people instead of 100 million.

Turning the world upside down has as much to do with accepting this idea of localized success as an acceptable answer as it does with explosive global growth and massive vertical scale.

The Two Big Trends

Trend #1: Adoption by Africans as consumers is increasing.
Trend #2: Technology costs are decreasing

Let’s get back to my talk for tomorrow at Nokia… 87% of sub-$100 phones sold by Nokia are sold in emerging markets. 34% of Africa’s population (313 million) are now considered middle class. The fastest growing economy in the world is Ghana, 5 of the top 10 are African countries (including Liberia, Ethiopia, Angola and Mozambique). Across the continent, the average GDP growth is expected to be at 5+% going forward.

At the same time, we’re seeing bandwidth increase, and bandwidth costs decrease. Mobile operators are the continents major ISPs, and they’re getting creative on their data plans. Handset costs are going down. Smart(er) phones are available for less than ever before. We even have one of the lease expensive Android phones in the world at $80 in Kenya, the IDEOS by Huawei.

Is it all bright and rosy? Not at all. You’re on the edge, you have to create new markets, not just new businesses. But in that challenge lies opportunity, for it’s from these hard, rough and disruptive spaces that great wealth is grown. If you’re an African entrepreneur, why would you want to be anywhere else?

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