WhiteAfrican – Page 52 – Where Africa and Technology Collide!

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Crowdfunding and Seed Funding in African Tech

I’ve written a couple of times about the lack of seed funding in Africa, and how to find the entrepreneurs to fund if you did have seed capital. We’re starting to see a few angel investors like Sean Murphy of Chembe Ventures making their way around the continent, but they are not nearly enough to fulfill the capacity of ideas and individuals who need startup capital.

Crowdfunding

Just this week the CrowdFunding South Africa site was launched (look for them at SXSW this week in Austin), working off the theory that, “South Africa cannot compete in the global online sector if it isnâ€™t funding start-ups at the beginning stage.” Their plan is to do this by getting:

“1000 people get together investing R1,000+ each by pooling the money into the Crowdfund.”

Seed funding is risky, and the idea of Crowdfund is to distribute that risk over a number of people thereby reducing it for everyone. Their goal is to invest 50,000-100,000 Rand in 10-20 “excellent ideas”, and also provide legal advice and contracts, designers, specialized developers, bandwidth, hosting, office space and running costs, mentorship and time saved.

This idea is similar to what Ben White at VC4Africa is thinking about, basically a “Kiva on steroids” as Bill Zimmerman puts it. A way for you to invest in people and projects with larger sums of money and greater risk and returns than on the microfinance investing sites.

Finding the Real Tech Entrepreneurs

Both the Crowdfund and VC4Africa initiatives are excellent steps in the right direction, as they both provide platforms that allow less-knowledgeable investors (of tech in Africa), and deeply involved African tech investors alike, to get involved without too much risk at one time. There remains one issue to be solved though, and that is finding the entrepreneurs to invest in.

Any VC worth their salt will tell you that they invest in the people behind good ideas, not just the product/service that the entrepreneur is trying to create. So, how do you find these individuals? It’s generally through your network, people you trust, that serve as a filter to guide you towards the promising ones. That’s the same in Africa as it is anywhere else, yet here in Africa, there are fewer of these trusted intermediaries who act as filters (especially for international capital), than there are in the US or Europe.

In a meeting this last week of the people behind Limbe Labs (Cameroon), Appfrica Labs (Uganda), the iHub and the iLAB (Kenya) we discussed how these spaces could act as that type of a filter for investors and funds. Each of us sees more young tech entrepreneurs every day, and sees these individuals consistently, than most any other single person could by themselves.

Could these labs, which are now showing up all over Africa, be a way for entrepreneurs to make themselves known, show their stuff, then be introduced to the funds and investors with a greater level of confidence than normal?

Tandaa Kenya Meeting: Local Digital Content

March 8, 2010 / HASH / 2 Comments

“If Africans are to get online en masse, they need a reason to go there. Their lives, their stories”

– Dennis Gikunda of Google Kenya, requoting Alim Walji who was at Google.org and is now at the World Bank.

The Kenya ICT Board is throwing the Tandaa event today in Nairobi at the iHub, sponsored by Google Kenya. It’s all about getting more local Kenyan content online, and it’s a good mixture of speakers so far, with Dennis Gikunda starting off, giving us examples of successful local content plays.

A “remember when” session just started, talking about how slow the internet used to be just a couple short years ago. Jimmy Gitonga scolds us for not doing more with what we have, figuring out business models and ways to make money off of our fast connections. He also reminds us that 2 million Kenyans access Facebook on their phones today. Moses Kemibaro steps up to give the real numbers showing the costs of internet, and the speeds, that has happened over the last year.

Joshua Wanyama, of Pamoja Media and Africa Knows, is up to talk about “The internet at 500Mb” – how to help Kenyan companies make money online. He’s giving us a short summary of his background, about how he started a web development company from the ground up in the US, then how he’s brought that same mindset back to Kenya.

“If I were to go online and try to find all the dentists nearby me in Nairobi, I couldn’t find it since it has not been digitized yet.” – Joshua Wanyama

Josh goes on to say that we don’t have enough success stories, though he does reference Ushahidi and Safaricom’s Mpesa. We need more of them, as it will help get more young, smart entrepreneurs operating in the internet space. Most of the internet traffic from Africa goes to websites like Facebook, YouTube and Yahoo, all outside of Africa. What are we doing to get our own content up and make it more of a viable business alternative for our own society?

Eddie Malitt of Sega Silicon Valley is here to talk about turning Sega village, a remote village of over 10,000 inhabitants located in Ugenya district â€“ 25 km from the Kenya- Uganda border, into a â€œSilicon Valleyâ€ â€“ an African ICT hub. One of the interesting findings that Eddie shared with us is that the children are leading the training of their parents and other adults. It doesn’t sound like their operations are self-sustainable, but that good things happen due to them being there.

[More of the Tandaa event will be going on today, but I’ll be unable to keep up with it due to other meetings. Follow it on Twitter at #Tandaa or @TandaaKENYA. I’m sure that Moses and Mbugua will also have something up later today.]

ICANN Comes to Nairobi

March 7, 2010 / HASH / 3 Comments

ICANN is the body that governs the assignment of domain names and IP addresses worldwide. It’s supposedly a non-profit, but their salaries might indicate otherwise. They decide if there’s going to be a new top level domain (TLD), and are behind the present craziness of letting anyone just choose their own TLD. They split the world up into 5 zones, and each year they go to one of these zones for their annual meeting. This time it’s here in Nairobi.

You can see the full schedule of this week’s events here.

The meetings are to be held at the Kenya International Conference Centre (KICC), who as organizers of the space have already fumbled the ball. They’ve double booked KICC on Mon/Tue of this week with the 6 heads of state (and all their security) of IGAD; Djibouti, Ethiopia, Kenya, Somalia, Sudan and Uganda. ICANN is none to happy about this, as stated on their blog:

“With that many national leaders and scores of security personnel arriving at our meeting venue at one time, we expect it to cause severe inconveniences and at times possibly major disruptions for our community members as they attempt to enter and move around the KICC.”

Major items on the agenda:

Here’s a video from Gray Chynoweth where he outlines the topics for this ICANN #37 event including security and remote access, new TLD’s, the .xxx gTLD, DNSSEC rollout, root scaling, WHOIS study and more.

New TLDsâ€” a discussion of what the â€œEOIâ€ (expressions of interest) process will look like for pre-registering new gTLDs. ICANN provides more information on this here.
IDN ccTLDs â€“ a status update on which countries that have applied using the â€œfast trackâ€ and where they are.
The .xxx extension- will it proceed and when.

Quick Hits in the African Tech Space

February 25, 2010 / HASH / 3 Comments

Indian firm Bharti buys up Zain Africa
The biggest news in the African tech space is Bharti’s $10.7 billion purchase of Zain’s African operations, which operates mobile networks in 17 countries in Africa. Apparently, some believe that Africa’s potential makes Zain deal value fair. (Zain’s African countries: Burkina Faso, Chad, Democratic Republic of the Congo, Republic of the Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra Leone, Tanzania, Uganda, Zambiaand Morocco.)

Google continues getting Africa on the map

Google Maps was launched in 30 Sub-Saharan African countries. That’s an amazing asset for everyone to use, and it’s also an incredible testament to the number of users using their “My Maps” feature, as this is where this data comes from.

On the growth of tech hubs in Africa
Rebecca Wanjiku wrote an article on IDG about, “Tech labs move beyond corporations in sub-Saharan Africa“. She’s a member of the Nairobi iHub advisory group, and has more insight than most in this space.

South Africa’s Design Indaba
It’s happening right now in Cape Town (Feb 24 – 26, 2010). Great design, and great speakers, but I was really intrigued by their kids program.

Location based service launches in Nigeria
StarTrack is a new location based tracking service in Nigeria, Loy Okezie has a good overview of this new service from Starcomms.

In San Francisco this week

February 18, 2010 / HASH / 6 Comments

I’ve spent this week in the San Francisco bay area going to meetings, speaking and discussing everything from the iHub to Ushahidi and AfriGadget.

University Students and the Aid Industry

Last night I spoke to a group of university students for 3 hours at the University of San Francisco to Wanjiru Kamau-Rutenberg’s class on “the Politics of International Aid and Development”. My bent is towards technology and the practical applications of such in Africa. I’m no expert on international aid, but that didn’t stop us from having a lively debate on what works and doesn’t work in Africa.

My main points were centered around technology allowing people to bypass government (and other) inefficiencies in Africa – creating opportunity where none existed before. In my experience, most aid programs don’t work, in fact we’ve seen more good come out of the mobile phone industry’s foray into Africa over the last 10 years than we’ve seen in the past 50 years of aid work.

Some questions that arose during the conversation, each of which we could have spent a day unpacking and dissecting in detail:

Can wealth generation alleviate the ills of Africa?
Is corruption trickle up or trickle down?
Should corruption just be seen as a “cost of doing business”?
What’s the most compelling innovation that you’ve seen come out of Africa?
Is there such a thing as “good aid”?

Google

This morning I spent some time with the Google.org and the Google crisis mapping team discussing ideas and thoughts about what we all did in the digital space around Haiti. More importantly we asked the question, “what are we going to do the next time a huge global disaster strikes?”

That’s an important question because we need to ensure that we’re further along next time. That, the next time disaster strikes we’re ready with a toolkit of useful applications and platforms that can all be deployed within just a few short hours.

One of the cool things to see was the Google street mapping vehicles parked in a row.

Citizen Space

There are more and more co-working spaces showing up all over the world, including our own iHub in Nairobi. However, one of the early pioneers in this was Citizen Space started by Chris Messina and Tara Hunt. My main purpose visiting was to see how it’s setup and how it has changed since I last visited a couple years ago.

My takeaways: big open space, desks and cool eclectic design. Rent desk space and have a cool vibe about it. I’m sure there’s more than this, but it’s what struck me during my short visit.

Twitter

Most of the afternoon was spent at Twitter where I gave a lunchtime presentation. Ryan Sarver, head of platforms and the API, asked me to do more general talk on innovation in Africa starting with AfriGadget. Having a good 50-60 Twitter employees listening in on AfriGadget, then a talk on mobile phones in Africa, and finishing with the Ushahidi usage in Haiti was interesting to say the least.

The questions asked made me realize that there’s a good opportunity for top-end Twitter employees (and likely other high-level techies from Silicon Valley) to stretch themselves a little bit, head out to Africa and really see what’s going on. They would probably get some ideas that caused them to be a little more creative back in the US.

A longer discussion was had with the leads for the Geo/Mapping team and the Internationalization team. More refreshing than anything else was realizing how open they were to outside ideas and how willing they were to listen. Twitter is doing a lot of things to make sure that their platform is more accessible all over the world, and I think we’ll see some pleasant surprises this year in Africa.

Summary

There’s obviously much more to discuss than this brief summary can do justice to, but not all of it can be put down at one time, or is even relevant at this stage in the game. What I’m excited about is the fact that more people in the Bay Area are talking about relevant issues to African technologists and that there are opportunities for the two groups to start interacting in ways that haven’t been that common in the past. There’s room for both sides to learn from the other.

TED 2010: Session 1 Highlights

February 10, 2010 / HASH / Comments Off

Session 1 at TED just ended, and it can only be described as an “only at TED” moment for me.

Why?

Simply because it showcased just how eclectic and fascinating this event is. Where else do you start with a talk by professor Daniel Khaneman who originated the study of Behavioral Economics, move on to the London and here a talk live from David Cameron who is leading the Conservative party in the UK, and then on to Jake Shimabukuro an amazing ukelele player…

Khaneman gave an engaging talk on “happiness”, where he talked about the difference between “being happy with your life versus being happy in your life.” There’s a difference between how we experience life and how we remember our experiences of life.

“If you knew that all of your pictures would be destroyed and that you would get amnesia, would you choose the same vacation?”

David Cameron is expected to be the next Prime Minister of the UK, he was the surprise talk this morning, telecasting in from London. He asked, “How do we make things better without spending more money?”. Pointing out that the global debt level is over 32 trillion (Pounds?).

His answer: use behavioral economics plus the information revolution and let’s see how we can change society.

Cameron’s prescription for this comes in three parts:

He wants to see greater transparency of government data. Stating that we have only scratched the surface of what can be done with open government data.
Choice. What happens if the government doesn’t mandate, but allows people to choose? He uses examples of web-based shopping engines and wonders how that can be applied to things like healthcare.
Accountability. Using an example of the Chicago crime map he wonders what will happen as we give the people power to see what is happening and hold the government and police to account for what happens.

Esther Duflo, from the Poverty Action Lab at MIT, gave a mesmerizing talk on the aid and development sphere, using examples from Africa and India. She’s asking the hard questions and trying to answer them scientifically, pointing out that much of the arguments (ie, Easterly vs Sachs) being made for/against things like bed nets in Africa are more emotional than substantial.

“It’s not the middle ages any more, it’s the 21st century.”

We can find answers to these questions using randomized control trials. She gave examples like the one where they ran test of 130+ communities using a control, camps and camps with incentives to test if children would be brought in more/less often for immunizations if they were given an incentive of a kilo of lentils.

The answer: they were, 38% more actually. That, and the fact that it was actually cheaper to run the incentivized camps than the normal ones.

TED 2010 – Fellows Program

February 9, 2010 / HASH / Comments Off

I’m in Long Beach, California for the annual TED conference. This year I’m a Senior Fellow, which means that I get to see and spend time with old friends like Jon Gosier and Juliana Rotich, other Fellows from year’s past and enjoy some first class discussions and mentoring from groups like McKinsey and Duarte Design.

I’ve been taking pictures of the TED Fellows, you can find them on my Flickr set. The really great shots are by the TED photographers, and you can find those here and the TED Blog. More on the amazing and eclectic group that is this years TED Fellows.

Some TED Fellows Talks highlights:

I met Hugo Van Vuuren, a fellow white African, at PopTech last year. He’s doing some amazing work in Africa around creating energy with off-grid technologies. Figuring out how to use simple things like dirt to create power at Lebone. Hugo says that they’ll be ready to sell this type of product by summer 2010.

I was mesmerized by Angelo Vermeulen‘s talk on “Biomodd“, which is a riff off of the gaming communities case modding trend.

Nigerian Ndubuisi Ekekwe, an engineer, inventor, author and founder of the African Institution of Technology, an organization seeking to develop microelectronics in Africa.

Kellee Santiago is a gamer and creates games based on emotions. She gave a great talk on what her company “That Game Company” does, with games like Flower.

Ben Gulak is a 20 year old inventor. He’s created the UNO, an electronic motorized unicycle and the DTV (Dual Tracked Vehicle), taking the best characteristics of a snow mobile, a skateboard and motorcross bike.

This new TED Fellows class is an eclectic group of polymaths. People who have expertise and interest in multiple areas. What sets them apart though is the fact that they actually “DO” things, not just talk about them. Seeing their work, talking to them about their projects and realizing just how special it is to be able to do that is what makes being a TED Fellow an amazing experience.

Mobile Web East Africa – Stream

February 3, 2010 / HASH / 25 Comments

[I probably won’t be able to keep this up all day, but I’ll try to blog/stream what’s happening here at Mobile Web East Africa as best I can. Refresh for updates]

It’s day one of the Mobile Web East Africa conference in Nairobi. This is a new conference, started up in South Africa to great success, and now spreading to other regions of the continent.

Paul Kukubo of the ICT Board

Paul Kukubo, of the Kenya ICT Board, is talking about the future of tech in Kenya, and how the government’s aim is to be a major hub for technology in the region. Explaining how the changes in the industry are brought into context for the government’s vision 2030. He talks about mobile payments, digitizing of government documents and processes, developing software standards and the growing tech community within Nairobi.

Paul continues with mentioning how their approach is to influence policy formulation, intellectual property, data protection, linkages to venture capital and basically catalyzing growth in the ICT sector between government, the public and business.

Rick Joubert of Yonder Media

Rick Joubert, from Yonder Media, “the mobile phone is the most ubiquitous consumer device in the world.” He goes on to talk about how the phone is now even more spread through South Africa than radios. There are 2x as many phones as TV sets. There are 6x more mobile phone subscribers than internet users (in South Africa).

Rick defines the Mobile Web this way:

Tier 1: The WAP internet
Tier 2: The mobile web application internet
Tier 3: Web browsing on phone

**Interruption**
PS Ndemo, who I know and like, is going to give a short address. This isn’t cool, as he’s interrupting Rick Joubert mid-talk (and a very interesting one too). Case-in-point for why government needs to get out of the way more than anything else in the technology field… [Yes, I note that this is probably the American viewpoint on equality coming out].

PS Ndemo is talking through how there were 3.5 million internet users in Kenya last year. Now, with the cost of laptops dropping, we now see 500 laptops sold per day (there were only 20k per year sold before).

Kenya also has the digital villages project (Pasha) with the World Bank is seeing long lines of individuals in far off places coming in to try the internet, get on Skype and figure out how to set up email and other services.

PS Ndemo, ever the gracious person, has at least apologized for the interruption and made amends to the speaker and the conference as a whole. There’s a reason I like him… 🙂

**Back to our scheduled program**

“The Apple iPhone is the number one handset on every continent in the world, except… Africa”. The Nokia 3110 and Samsung E250 are the two biggest phones on the continent. The fact of the matter is, the real money is being made in the inexpensive DVD/Nollywood areas, not in the mobile web yet. Services that play to USSD, Voice and SMS are where the real opportunities lie.

Driving forces:

Growth in data networks and coverage
Mobile data access charges
Local content
Better quality handsets shipping at the cheapest possible price
Mobile wallets, mobile commerce, mobile banking

Business models and monetization routes:

Commerce
Transactions and financial institutions
Content
Advertising

Rick projects that the “size of the prize” in mobile advertising is approximately $8 billion per year in Africa.

Rick finishes showing a video from LynxEffect on how consumers see mobile web, the seductive side of it.

Eric Cantor of AppLab Uganda & Grameen Foundation

I wrote about AppLab and their work with MTN and Google last year. Eric wants to talk about a critical look at a critical space, the 95% of the African population that doesn’t own a smartphone.

(Get the full presentation of Eric Cantor’s slides as a PDF)

“There are more people having conferences and running too many pilots around the use of social mobile work than there is real practical applications and scaling of the products in the market.”

Technology: Be Patient
SMS is not the only way. It’s very challenging and very expensive to work with SMS. One way to adjust this focus is into voice – people like people, and want to talk with each other.

Handsets need to evolve. Nokia 1100 vs Java 1680 ($20 vs $60) – we’re waiting on the $40 smartphone.

Eric reminds us that we need to get back to the Four-Ps of marketing. We can’t forget user experience, the services might be serious, but still need to be fun to use. At the AppLab they don’t believe what they hear (because everyone says “yes, this product will be great in our market”). They try to dig deeper, learned from Google, on what customers really want and see what people are really using.

Question time

I’ve asked the question for Eric Cantor about why we’re not seeing very simple data hooks built into some of the USSD and SMS applications running in Uganda. (more on this here: “Should we be building SMS or internet services for Africa?“). Eric agrees that there is a lot of upside in that space, and that they’re trying to push more towards the data channel, but until we start seeing more data-enabled handsets in ordinary people’s hands out in the villages, it’s just not a main priority yet.

Robert Alai asks what is driving advertising growth in South Africa? Is it the large companies, or smaller organizations?
Rick responds saying that it’s large companies trying to reach their customers, from banks to Coca Cola and everyone in between. Businesses build grow in this space to find solutions for that, and that’s primarily small innovative companies (like his own), small nimble startups.

Agatha Gikonda of Nokia East Africa talks about the Ovi Store and the opportunities for local developers to create applications and put them on the store to make money.

Peter Arina of Safaricom

What are we going to do to drive interent usage in Kenya? Some stats:

Mobile users are estitmated at 19.05m subscribers. Kenya population estimated at 40m with 22m being the addressable market (15yo or older).

70% of mobile data users spend less than 20ksh on a monthly basis. Industry data enabled handsets estimated at 5m or 26% of GSM users. Cost of a 3G handset is 3x higher than that of a non-data enabled handset. Computer prices are way too high compared to the disposable income of majority of Kenyans.

“The cost of devices that access the internet is the biggest barrier to entry for ordinary Kenyans.”

Cost of broadband (price) is prohibitive due to infrastructure investment.

Local content – the most popular sites accessed on the Safaricom network is Facebook and YouTube. Limited content which is highly priced, is also a barrier locally. There’s a need for high quality data enabled handsets to get good experience.

Conclusion
Mobile data users estimated to reach 10m in the next five years subject to availability of affordable devices, increase awareness, local content development and drop in data prices. Safaricom is trying to work directly with the manufacturers to get more data-enabled devices into normal Kenyan’s hands.

There is a need for more local content that is relevant at affordable rates. Need for reduction in frequency costs, a creation of daily usage habits among users and a need for the government to remove VAT on modems.

Questions
@Kahenya is asking a question. Safaricom is trying to become more affordable, it’s still the most expensive network in Kenya. It’s still has no fixed rate for the mobile data network access. It doesn’t work for small and medium sized business, is Safaricom doing anything to change this?

Peter Arina says they are trying to be cautious. They’re trying to focus on quality (bull$%@& as they have the worst network connectivity in Kenya). He says that they have plans to reduce the cost of data as well, but he has no details on it.

The Safaricom rep says that their main goal is to provide services to the Wananchi (the ordinary/mass Kenyan). The question remains then, why is the cost so high for all of their services?

Paul Kukubo asks when Safaricom will open up their network for value added services for developers and other companies. He’s wondering why the revenue share is so high here (currently if you partner with Safaricom, they’ll take about 60% of revenues), meanwhile elsewhere in the world, like Japan, give 70% to the developer.

Paul asks about the issue with the networks taking advantage of the developers who are out there who come to them with ideas and new products.

The Safaricom rep states that this is not the case any longer. They partner with MobilePlanet and Cellulant (as examples, but it’s a poor one because they’re established companies now). He says that at first they start off with a big chunk of the revenues, but as the product does better, then the developer will get more of the share.

Basically, we get no straight answers from Safaricom and only promises of better things in the future with no details.

Jose Henriques, Executive Head: Online Product Management, Vodacom South Africa

6.65% of the African population currently uses PC internet. The top ten countries make up 85% of that.

Some more stats:

Africa represents 15% of the world population, but only 3.9″% of the world’s PC internet usage.
Africa’s PC Internet users have increased by 1359% from 2000 to 2009.
The global service revenue generated from subscriptions to mobile internet access are forecasted by Informa Telecoms & Media to rise from $57 billion in 2008 to $120 billion in 2013.
Mobile ad revenue is estimated to be at $2 billion by 2014. Total value of marketing spend on mobile to be around $6 billion.
Mobile subscription rose from 54 million to almost 350 million between 2003 and 2008.
On average there are 60% mobile penetration in the world. In developing countries the figure stands at 48% , which is 8x bigger than in 2000.
Lack of fixed-line access will drive huge mobile internet usage and revenues.
Vodacom generates 49 million ad impressions per month in South Africa (big opportunity).

(Full presentation by Jose Henriques from Vodacom South Africa)

Questions
What has been defined as a smartphone, is not what we define one as today. How would you define it?
Cheapest data enabled devices are about 2000Ksh in Kenya. Safaricom thinks that these are smartphones.

Mpesa… Why is Safaricom unable to cooperate with and provide third-party access (opening their APIs) to developers in Kenya for Mpesa?

The Safaricom rep says that they are willing to do this, and that they’re hungry for people to come in with ideas and products. No specifics given on this. @TMSruge, the moderator, asks her to provide details on how they are actively trying to seek out and help grow this as there is no API or SDK.

@wanjiku says she’s heard Safaricom saying that they have a tendency to do well with big companies, but holding smaller company money for 3-4 months, hurting their cash flow.

Steve Vosloo asks what types of local content are people really willing to pay for?
The Safaricom rep is out of touch… she states that, “no one is willing to pay anything for mobile content”. This is bunk.

Rick Joubert comes in to state facts on how much money there is being made in South Africa in mobile content, $540 million is the real number just in SA. It’s not whether people will pay or not, it’s whether they find value in local content.

A question was asked of Safaricom, why they don’t open up the ability for third-party service providers to bill consumers? The answer by Safaricom is that they are. (I can’t confirm this)

We have Zap, Mobile Pay, Mpesa, etc… when are we going to have an agnostic system to send/receive money? by @kahenya

MTN rep says to come to Uganda to see this working. It’s there working on the MTN system. It’s a serious issue of not having your payment system to go beyond your own network.

Mpesa is a wall gardened. Kahenya and Teddy Ruge ask when there will be a need to NOT walk around with 3 handsets to send money within each one.

Safaricom states that they can already do this within their system. They lay the blame at the regulators feet for why it hasn’t happened.

**Lunch**

Brett StClair of AdMob

Brett starts by asking, “what is mobile internet?” It’s a website that is built for mobile handsets. Admob puts banner advertisement on these sites. They server 12-14 billion advertisements into this network each month. The man on the street can earn revenues start advertising today. There’s a 60% payout to publishers.

Have access to 53 countries in Africa. Monthly ads serves is 750 million in Africa alone.

African Mobile Web currently has South Africa, Nigeria, Libya, Egypt and Kenya as the top 5. Data prices do have a huge effect on the advertising revenues available in Africa.

Nokia 3110c is the most pervasive phone in the market (3.8%), Samsung E250 is at 3.7% penetration. Top smartphones are the Nokia N70 at 10.8% and then Nokia 6300 at 10.3% and then the iPhone at 8.2%.

Top reasons why South Africa is working:

5 million fixed line internet vs 10 million mobile internet users
Strong operator billing infrastructure
However, mobile money is not mature yet
Early adoption by premium traditional publishers
consumers traditionally have had a fast adoption rate
Due to vast competition for impressions average CPC pricing grew from $0.03 to $0.27 in a year.

Is Africa next? The rest of the world thinks it is, but we need to get the local people to understand this.

Cheapest inventory in the world is in Africa… global accesss average is $0.03, in Africa it’s at $0.01. Local contet providers will benefit as they understand the local African consumers.

Key to making this work:

3g network coverage
Cheap data pricing
GPRS enabled handset penetration

What are the opportunities in Africa?
Strong tend to follow the West and South Africa. Paid for content, reliant on operator billing. Free content, which is ad funded. The top publisher types are communities, portals and downloads. The top categories are music, religion (15%), games and brands.

African traffic is made of 54% Nokia handsets, then 18% Samsung handsets. iPhone requests make up 18 million impressions in Africa.

Malili: Kenya’s Planned Technopolis

January 28, 2010 / HASH / 45 Comments

I’ve had two meetings with Kenya’s Permanent Secretary Bitange Ndemo (Ministry of Information and Communications) in the last week. Both times a certain project kept coming up in the conversation. It’s called Malili – a 5,000 acre East African technopolis – a city built up for technology firms and it’s the Kenyan government’s way of creating a regional ICT brand.

My first thought up on seeing the pictures: it looks like Dubai has come to Kenya.

The Malili project is modeled off of other large technology and research parks around the world. One often cited in comparison is Smart Village Cairo, which currently hosts 120 companies and 20,000 professionals and they’re expecting that to increase to 500 companies and 100,000 professionals by 2012.

One of Kenya’s goals is to grow IT contribution to GDP from 3% to more than 10% in three years. This won’t happen using Malili as it’s yet to be built. In the interim, PS Ndemo has moved to secure a good portion of the Sameer Business Park, which is on Mombasa road and is almost finished being constructed. This type of space will be available for companies who eventually want to move to Malili in the future, and it also sets the stage for Nairobi being an even more prominent tech hub in Africa.

Location, Location, Location

I like this project, it shows Kenya as a forward thinking country with ambitious plans. My only misgiving is in the location. It’s 60km from Nairobi, and though the Mombasa road is much better, it’s still the most congested and prone-to-jams point on the Kenya roadway system. Yes, it will be a city all it’s own, over time, but Nairobi will still be the “place to be”, so there will be a great deal of traffic.

The airport sits between Malili and Nairobi, so for incoming people, it will be easier to get to than having to drive into, or through, Nairobi.

There’s a lot of discussion within the Kenyan tech community about Malili. It’s a big government project, with private sector participation, and Kenya’s track record of completing these types of big projects has been spotty (think Nyayo Car). Time will tell though, I’m of the mindset to not discount it. It’s time for us to start being optimistic about the possibilities that this country offers in technology.

Some, like the Nairobi tech community and the new Nairobi iHub tend to start small and grow from there. But, government has a different role to play, and it’s good for them to aim high and use their size to make big things happen.

Download the PDF:
Malili Technopolis overview slides – PDF