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Tag: Mobile (page 5 of 14)

Banks Blocking Mobile Money Innovation in Africa?

There’s an good post over at the CGAP blog about mobile money’s innovation crisis. The author claims that nothing new has happened in mobile money since Mpesa was launched in Kenya, except for maybe the launch of Mkesho this year in Kenya as well. Besides that, everyone around the world pretty much tries to duplicate what Safaricom is doing in this space.

Why?

“There may also be one partnership in particular that could be hampering innovationâ€”that with the banks. Historically, these two players have taken very different strategies for new product development, especially in resource poor countries.”

Thinking big picture

You can send up to $500 for as little as 37 cents using Mpesa. On Zain it will cost you 74 cents. That’s an insanely low transaction cost compared to what banks charge, and that’s not even going into the fact that they can’t do transactions as low as 50 to 100 Ksh ($.60 to $1.24). The kicker, you can store your money in it for no fee at all (unlike the usurious rates that the banks charge).

Simply put, banks cannot compete with mobile operators when it comes to transacting payments for the majority of Africans.

Regulators make and enforce the rules around everything. How do they make their decisions, who lobbies them and why? Is the reason that we haven’t seen a true replication of Mpesa anywhere besides Kenya due to the banking sector protecting its interest?

Opportunity lost

Right now anyone in Kenya can do every type of transaction within our own borders, and if creative into neighboring countries as well. A few other countries have the ability to do this type of thing as well, if less efficient and/or elegantly conceived.

Currently opportunity is lost by local merchants in not integrating mobile payment structures better into goods and services offered to both businesses and the public. This is changing, businessmen are quick to move to figure out new ways to increase margins and customers. It’s only held back by the operators not willingly opening up their platforms for easier integration into business.

11% of Kenya’s GDP was shifted through Mpesa in 2009, and the company expects that to be around 20% this year.

We can all agree those are big numbers and that a massive ability to make money has been shown in Kenya. This begs two questions:

Why has no one allowed it to truly replicate in another country?
Why is no one throwing big money after this, trying to figure a way to scale a mobile operator and bank agnostic payment solution across a region, if not the whole continent?

There are big players trying to break into the greater African market (I’m looking at you Naspers). There are banks who have the money to spend on figuring this out, but aren’t thinking beyond their own brand, so continue to fail. Maybe the answer is we just should sit here and let all this lost opportunity continue to drift by us, waiting on the big credit card players of the world like Visa or Mastercard to make a move.

That’s a fatalistic stance, and I certainly hope it’s not true. Unfortunately, I don’t think we’ll see this service come from 2 guys coding in a garage. Instead, I hope that there are mobile operators and banks banding together to make something bigger than themselves that make more profits for everyone. If not them, a big investor willing to wager millions of dollars on making billions.

Making Ushahidi

August 12, 2010 / HASH / 27 Comments

[Below is my Tech4Africa talk, given today in Johannesburg, South Africa, titled “How we built Ushahidi, w]

I’m used to talking about Ushahidi, and as all of you guys who frequently talk about your product or company know: it gets old spouting off the same old stuff over and over again. That’s why I’m excited about today and for being invited to this excellent conference, since I’ll be telling the backstory, the quirks and funny bits that got us to this point and made our Ushahidi culture what it is today.

This is my story of Ushahidi – Of a small organization that dislikes hierarchy and being told what we can’t do. One that questions everything, embraces innovative thinking, takes risks boldly, and sometimes learns the hard way that we’re human after all.

In January 2008 I spent a week watching news reports roll in from Kenya, frustrated. Frustrated because I had said for years that “technology helps us overcome inefficiencies”. Wasn’t the madness of Kenya, in it’s post-election violence throws, it’s lack of media coverage, and lack of real information just this? Why was I unable to do anything?

It turned out that I needed an idea, and for once I couldn’t come up with one on my own. That seed of an idea that grew into what you see today came from a simple bullet point by my friend and fellow blogger Ory Okolloh, asking if we could map reports of violence around the country. Thus Ushahidi was born.

I’m going to walk you through three defining moments for our organization, and our platform, not all of them pretty, but which make us who we are.

1. Let’s look at the ad hoc cast that got it started:

The Ushahidi Team - circa Jan 2008

Ory Okolloh – lawyer, blogger and Kenyan political pundit
Juliana Rotich – renewable tech geek, blogger and database admin
David Kobia – developer and top Kenya forum webmaster
Daudi Were – blogger and web guy
Erik Hersman – Africa tech blogger, web guy
Others – a various cast of tech and non-tech people swarmed around the first Ushahidi deployment in Kenya, helping with small tasks and then disappearing.

Key points:

You’ll notice that there was not a single one of us who had any humanitarian experience
None of us had taken part in any open source project. (v1 was built in .NET)
Most of us were self-employed, running our own businesses or consulting, and didn’t like working for big companies.
The only common denominators that we shared was our love of our home; Kenya, and the ability to blog.

Thus, we felt we were the best placed to create an African open source platform for crowdsourcing information, our tech gift to the rest of the world.

We didn’t think of that at all actually. Instead we were madly Skyping, emailing, wireframing and coding over a 3 day period to get something up as quickly as possible.

We were brutal about every decision:

If it wasn’t absolutely necessary, throw it out.
Pick a name, any name, we don’t care if non-Kenyans can’t say it, just get a domain up asap
Launch this app, it’s functional, we’ll fix bugs and features on the fly
No one has a short code for us yet? Screw it, it’s not worth waiting, we’ll get one eventually.
Money, what’s that for? Media budgets are overrated, we’ll blog it.
We don’t have a logo. Oh well… Launch already!

How our team came together, the way we made those initial decisions and how we interacted and leaned on what would become our community was defining. It still colors how we operate, our organizational communications and our community focus.

Lessons learned:

This taught us to keep a shallow and wide decision-making structure so that everyone had access to all the information about ops or platform that they desired. Anyone was empowered to make decisions, since thy understood the macro-game.
Release code early, it’s better to have it out and being tested and worked on in the real world, than hidden away in a sandbox somewhere.
If you want it done, build it yourself, don’t put it off onto another team member.
Community = success
No money, no worries. Build good stuff and good stuff happens, money follows.

2. Technology is only a tool

No background in open source projects meant that we had little experience in how to engage programmers, designers and the help needed to get things moved from that initial .NET build into an open source language. David and I were trying to decide what language to write this in, and we ended up picking PHP over Python since we thought more African programmers would be proficient in it.

David wasn’t a PHP guy (yet), so the early helpers, the volunteers like Jason Mule, Henry Addo and Chris Blow were a huge help in making the decision to go with the Kohana framework and a myriad of other decisions.

3 months later we announced v0.1 of “THE NEW AND REBUILT USHAHIDI PLATFORM!”

We were very excited, after all, wasn’t this the platform that would save the world? And we were ready to show the world just how it could be done. Gamely mounting our white steeds we charged into a deployment of Ushahidi in the troubled North Kivu region of the DR Congo.

Echoes of that failure splatting against the ground remind us still, today, of the complexities of the space we build software in. We learned from those lessons though, and Ory wrote a good blog post making sure that it was shared within and without.

Lessons learned:

Technology is only 10% of the solution needed. The rest is administration and messaging.
Stick to what you do well. Our team is built to build software, not be a deploying organization
(caveat! We do help in deploying rarely, like Haiti and Kenya, but we now pass those off, or partner)
Own your failures publicly, learn from them.

3. Enter the failephant!

Only a few months later, after the DRC debacle, we were rested and ready to fail again.

Al Jazeera had used the alpha version of the Ushahidi platform in Gaza, a group of organizations and individuals were deploying it to monitor the worlds biggest elections in Indian, and we had a number of groups in East Africa testing it out.

Our model was that we had a small team at Ushahidi whose job was to come up with and guide the core architecture of the platform. Volunteers also worked on core, but were also encouraged to extend the platform in their own ways. It was working very well, and still does.

We were ready to release the code publicly.

Before I say anything, let’s revisit that point earlier about none of us having eroded on an open source project before…

Preperations were made, blog posts were written, tweets were tweeted – and we got lambasted by one of the guys we respect a great deal in the open source community. Rabble called us out on all the things we did wong.

– The code repository was behind a user/password wall
– We werenâ€™t available in the normal programmer channels like IRC
– Hard to plug into the rest of the dev community

Our team went to work, madly working over the next 12 hours to get our stuff straightened out. Finally I wrote another blog post, introducing our failephant mascot and apologizing for our ignorance and missteps.

Lessons Learned:

Listen and apply that listening to real changes
Again, own your failures. Fix things that are wrong.
It’s okay to think different in how you execute on a project as long as you don’t stray from the spirit of your community and self

Finally, I’ll end with this.

We’ve learned that technology does overcome inefficiencies, but that it still takes people to make it happen.

We’ve learned that more people need to buck the status quo, that questioning everything makes us better.

We’ve learned that Africans can build world-class software, and to expect nothing less.

DukaPress: A WordPress eCommerce System from Africa

August 9, 2010 / HASH / 3 Comments

DukaPress is a new customized WordPress eCommerce platform. It allows you to easily set up a fully featured online shop which can be used to sell digital or physical goods to customers all over the world.

I’ve been using WordPress for many years, and am a huge fan. When I saw DukaPress last week, I was at impressed to see that it was built locally in Nairobi, but I also wondered why another eCommerce WordPress build was needed, as there are already some good ones out there such as WP-ecommerce and Shopp. So, I asked the Kelvin, from Nickel Pro, and here is his response:

I know you’ve probably been using WordPress even longer than I and the rest of the DukaPress team so I can probably say you know that WP-ecommerce is a bit…buggy (I say this with the highest amount of humility, we are nowhere near achieving what they have). The other free WordPress e-commerce plugins are much less usable, to us, than Wp-ecommerce.

Shopp is really really good but it sits behind a pay-wall – which is okay.

We built DukaPress to be fully featured, yet super simple to use and, well, free. It actually did not start out life as something we’d give out to the public – we built it primarily to serve our own purposes at Nickel Pro because we build a lot with WordPress and when it came to building e-commerce stuff it was always a big problem. One thing led to another and DukaPress, the plugin for public release, was born.

Around the net where WordPress e-commerce is being discussed, there is always a lot of complaints, primarily against WP ecommerce (some people call wp ecommerce a trojan for their ‘for sale’ upgrade), we hope that with DukaPress, people out there have a viable and better (I hope!) alternative.

Other than that, we offer features that none of the other WordPress e-commerce plugins do! As you rightly assumed, we support all three Kenyan mobile payment systems ZAP, yuCash and MPESA! Although I have to qualify that and say that integration of this is still being developed to be more fliud. We’re just at version 1.0.1

How shall we make money with this? We already do, we’ve used it in at least 4 major projects for our client work and it has already paid for itself.

Other than that, we’re currently working on version 2 which will bring full WordPress Multisites support – so that you can build your own etsy.com in 15 minutes – among other features we think are nice. At that point (in the next month or two), we may launch our own etsy.com-type service (or, in better terms, a wordpress.com which can host fully featured shops); or licence the multi-site version of DukaPress for a fee; or both. No other e-commerce plugin has “successfully” pulled off a WordPress Multisites integration to date i.e. users still cannot build a wordpress.com that can host shops without a great amount of hacking.

DukaPress is also a gateway for www.madoido.com.

I think there are certainly similar plugins which may outperform DukaPress but I also do think it probably beats some of the more established ones. I hope the larger WordPress userbase gets to prove me right, but even if they don’t, DukaPress certainly makes our lives easier, and gives a really welcome international perspective to our business.

On a personal level, I’m impressed to see Kelvin and his team at Nickel Pro working on DukaPress, and I hope that they continue to make it better. If you’re a WordPress pro, or in need of an eCommerce solution, check out their website, documentation and features.

Safaricom Innovation Board and the Kenya Tech Community

August 3, 2010 / HASH / 15 Comments

Safaricom is Kenya’s largest mobile operator with approximately 80% of the market. Most people don’t know this, but they get hundreds of business and technology proposals each week from people all over the country – techies and non-techies alike. It was with this problem in hand that they decided to open up an “Innovation Forum” for Kenyans to share their ideas.

In short, it was a disaster. Draconian legal terms and conditions mixed with ham-handed community engagement meant that they met with a lot of resistance and outright mockery on public channels such as Twitter and Facebook. Just a sample from one blogger:

Engaging the Community

Safaricom is now back to the drawing board. Their problem hasn’t gone away, they’re still overwhelmed with emails, letters and proposals for business ideas that might/might not make sense for them to engage on. Wadzanai Chiota-Madziva heads up their VAS (value added services) department, and is in charge of this. After the noise caused by the less-than-stellar launch of the Innovation Forum, she and CEO Michael Joseph met with one of the techies who was very concerned about the way they were handling this: Al Kags.

Al Kags has sat down in a couple of meetings with them thus far, finally he suggested a board that could serve as a buffer between Safaricom and the people sending in proposals. The Innovation Forum Board’s job would be to speak for the community to Safaricom, as well as push for better access to APIs, a developer sandbox and possibly and app store. They would also be responsible for helping to translate Safaricom’s position to the community.

I was invited, along with some other’s from the tech community, to sit down and discuss this with them last week. It was a fruitful discussion about the possibilities and the roles and responsibilities that the board would have.

Some of the discussion was about the need for a buffer to be created between Safaricom and submissions to foster fairness and openness, to provide confidence to developers to innovate without fears of intellectual property (IP) misappropriation.

“The intention is for the board to create a fair environment for innovatioin by playing the middle ground between Safaricom Ltd and the developer and innovator community”

The position is largely one of an enabler. The board would oversee the Innovation Forum by:

Create and agree rules of engagement with all parties
Advocate developers perspectives at Safaricom
Facilitate understanding of Safaricom position with the developer/innovator community.

Figuring out the Board

The people invited for the meeting, as the potential board, were Moses Kemibaro, Jessica Colaco, Al Kags, Karanja Macharia, Rehema Parmena and myself.

While it is up to Safaricom to decide who is on their Innovation Forum Board, those of us at the meeting pushed back a little on how they had done this. If they want to interact with the community, it might behoove them to reach out to that community for some of the nominations.

They listened, and starting today going through the end of the week, you can make your own nominations for the Innovation Forum Board for Safaricom to review on the website. This is your chance to put a name in of someone that you think would represent the community well on the board.

A Mobile Payment Trifecta in Kenya

July 28, 2010 / HASH / 26 Comments

Kenya is quickly gaining a competitive advantage in the mobile payments space. Led by mobile operator giant Safaricom with their Mpesa product, the market locally sees huge value in mobile money transactions. Add to that a regulatory system that is relaxed enough for innovation to be encouraged, and you have a great space for interesting things to happen.

Pay.Zunguka

The team at Symbiotic always have more than one iron in the fire. I was surprised by their most recent release of a new product called Pay.Zunguka last week. Simply put, it’s a payment gateway and aggregator, allowing merchants, developers and content providers a way to monetize their work with the public.

There are two sources of inspiration in Pay.Zunguka (guys, we need to talk about names at some point…), that is the ability for people to utilize international online payment methods like PayPal and Google Checkout, but more importantly that users here in Kenya can do it all without a credit card, only using their phones. That’s a big deal, and it’s a nod towards recognizing that credit cards aren’t necessary, we can bypass that mess.

Mbugua Njihia, CEO of Symbiotic, tells me that their plan is to first integrate with content providers and create an easy-to-use micropayment space, charging 3% per transaction. This will be followed by a partnership campaign to work with larger organizations who don’t have an efficient payment platform for consumers.

PesaPal

PesaPal I’ve written about before. It’s a mobile payment gateway as well, but one with a specific focus online. Liko and team have made great headway recently, but not just in the technology, which is critical. They’ve made headway in some other important areas, funding and marketing.

We’ve talked about the need for local investors to buy into local technology startups. When that doesn’t happen, the international ones swoop in and take advantage of local investor myopia. In this case, PesaPal is receiving a healthy seed capital investment for scaling and marketing. With cash flow happening right now, it’s a good time to invest, and I’m glad to see someone doing so with this team.

I talked to Liko yesterday about this. Their strategy has shifted somewhat since last year, instead of just focusing on web merchants, the PesaPal team is working on relationships with educational institutions and educational book suppliers to make parents lives easier when their child starts the school year. The parent can now pay their child’s school fees using Mpesa or Zap, and then are directly linked to the list of that year’s books with the option to buy them too, and have them delivered to the school for their child’s first day. Brilliant!

This is the kind of fresh thinking that is great to see coming from tech startups: they’re not thinking or selling the tech, they’re selling a solution to a problem.

Zynde

Zynde is a new player in the space, but you’ll start to see a pattern here when you jump over to their website. Because none of the large companies are addressing the very real need for agnostic payment gateways the market is filling in that gap for them.

A quick email chat with David Kagiri of Zynde gave me more insight into their focus behind the service:

“My main driver was that new technologies existed that could enable me deliver cost effective solutions. After interaction with owners of small businesses I realized that most don’t keep track of their business finances and the cost of the available off shelf software that would help them with that was beyond their reach. I came up with a simple solution that uses the SaaS (software as a service) model so that I could deliver cost-effective solutions to them and an API that will enable creative developers to extend it to multiple mobile platforms and reach the masses.”

Zynde will have to prove themselves in what is quickly turning out to be a highly competitive space with competent players.

Links from Mobile Africa

July 20, 2010 / HASH / 1 Comment

Mobile Subscriber Growth in Africa

A new report shows that Africa has 12% of the new mobile subscribers in the world, adding 20.1 million in Q1 2010. That’s a sizable amount. What’s actually more interesting to me is that they’re saying that the continent now has 47% penetration, which means that there’s a lot of growth yet to be had as compared to the rest of the world.

[One of these days I’ll have the Â£400 to purchase and really dig into these reports…]

Street hackers and the Neighbourhood App Store

Jan Chipchase gives us some background on how the mobile phone street-hacker culture originates:

“I like to think of it as a neighbourhood app store â€“ and in many ways itâ€™s the edges of the internet, where entrepreneurs are taking content online and offering it to local, offline and/or technologically illiterate customers. Also these corner shop app stores can be content editors for their community: they filter content they think their customers like, but they also guide what their customers might like as well.”

Nokia battles the Chinese

As David put it, “Nokia lost the high end to iPhone/Android/Blackberry, now battling China’s cheap phones on the low end. Things not looking good.” (link)

“For instance, it sold 432 million devices in 2009, or more than its top three competitors combined, however, its average selling price for all models has plummeted 44 percent in the past five years to 62 euros.”

Mocality: Mobile Business Listings for Africa

June 22, 2010 / HASH / 17 Comments

It’s not often that you hear of a tech startup from South Africa who chooses to build and deploy their product to Kenya first. In fact, I’ve never heard of such a thing. However, that is just what is happening with Mocality, a mobile and web-based business listings and directory application built for Africa.

Mocality’s job: create a digital platform that makes it easy for business owners to promote and expand their businesses in Africa.

“As a business owner, you get free SMS, a contact list, a free mobile website and a free mobile business card.”

Mocality represents this change in the paradigm that we’ve seen coming on for years in Africa. An application built agnostic to the client platform (mobile phone or PC), where data is fed into whatever you use in a meaningful way. Where the mobile usage is just as rich as the PC use.

In fact, they’ve studied usage of mobile phones on their system and have seen the usage of smartphones to be so negligible as to not matter. As CEO Stefan Magdalinski says, “This is the Mocality reality: RIM, Android, Apple are 2% of usage.”

About the Team

Successful startups generally have great leaders, Mocality has that. Stefan Magdalinski (@smagdali) is a seasoned web veteran and entrepreneur, co-founder of Moo.com and an early entrant into the programming space in England in the mid-90’s, and just recently relocating to South Africa for Mocality. They have plenty of funding, from MIH, a subsidiary of Naspers Group (who has been eying Kenya with recent forays such as Kalahari and Haiya).

I’ve met with Stefan in Kenya and South Africa, and I’ve also had the chance to meet some of the members of his team here in Nairobi. The impression that I’m left with is that this is a serious startup, with plenty of funding and a great vision and a strategy put in place to pull it off.

How it Works

Mocality is built for Kenyan businesses that don’t have enough money (or value to gain) to advertise in a print directory.

Again, a paradigm shift. They’re saying that they don’t care about the big end of the power law of distribution (the big companies), only the longtail (small, marginalized businesses). This is apparent in the images below of their typical user:

SMS, WAP & Web tools (now J2Me, iPhone)
Businesses can self list
Geo-coding All business locations
Map view of business
Business toolkit:

Add customers & suppliers
Send bulk messages (400 free SMS monthly) (but with anti-spam controls)
Send mobile business card
Add details (e.g. Menus, Special Offers)

Website, google optimised (white hat only)

Important to business owners in this segment is that the platform is free. Services will be added to the platform over time that business owners can pay for, but currently the only cost to them is data or SMS usage on their own mobile phone to access Mocality.

Scaling using the Crowd

Initially, the Mocality team walked all over Nairobi getting businesses to put their listings on the platform. They were successful, and in about 6 months of hard work were able to get approximately 11,000 businesses listed. That’s good, but barely puts a dent in the number of companies operating in this city.

The team then launched a crowdsourcing option, where they experimented with allowing anyone in Nairobi to add their own (and other’s) businesses to Mocality, and they got paid a bounty to do so. Within the last 6 weeks they have as many listings entered as the previous 6 months. If you live in Nairobi and want to become an agent, you need a WAP-enabled cameraphone and only need to visit http://www.mocality.com/money.

That’s impressive, but the impact is even more apparent when you look at the visualization:

If you have a business in Nairobi, you can get your listing onto it by visiting www.mocality.com email to info@mocality.co.ke or SMS callme to 2202 from within Kenya.

The “Nokia: Innovating Africa” presentation

June 4, 2010 / HASH / 20 Comments

A special thanks to all of the commentors from the last couple days who gave of their opinions to help Nokia think differently about innovating in Africa. It was these comments that I channeled, where I served as a messenger to tell the Nokia executives who flew in from all over the continent and Europe for this meeting in Nairobi.

Nokia: Innovating in Africa talk

Points made in the talk

[Note: most of these points came directly from the readers on my last post.]

First, stop treating the Middle East and Africa as a single region. If you’re serious about Africa, treat it as its own region.

Second, stop colluding with the operators and start colluding with your customers.

The mobile space is more nuanced now, it’s difficult to create a handset that will change your fate, instead it’s a mixture of software, apps, web platforms and data costs (as well as handsets) that decide your future.

Engage developers, third party programmers and businesses is where innovation comes from, not a large, slow company.

Standardize your UI and OS, strengthen your APIs. Get out of the way and let software developers innovate on a platform.

Make it easy for developers to make money, even in Africa. Figure out a way that people get paid and can bill via your server-side offerings like Ovi.

Take some of the big money that’s being thrown at high-profile “global social change competitions”, which generally attract Western organizations, and do more smaller-scale work at the grassroots level.

A large percentage of users can’t afford the data plan to get on your own websites and the Ovi store. Zero rate them. There’s no reason you shouldn’t be eating Facebook’s, Twitter’s and Google’s lunch in this, as Nokia has deeper penetration with mobile operators than almost anyone else on the continent.

Consider a specialized site for Africa, loading fast on low bandwidth.

You were too slow on the dual SIM card movement, that if anything showed you had lost your innovative practices in the emerging markets like Africa.

Today it’s driving the cheapest candybar phone to the lowest possible price. Good, keep that up. While you’re doing so, make the battery last longer and keep thinking of great ways to recharge it (solar or bicycle dyno).

But, look ahead are realize that even here in Africa, people want Smartphones with real web browsers, social networking and entertainment apps. Do it for under $100.

You don’t want to hear it, but I’ll say it anyway. Software isn’t your strong point, hardware is. Consider embracing Android.

How about a multi-touch dual-SIM Android smartphone for under $100â€¦ can you do it?

SD cards = digital storage. In fact, provide these with content already on them, including books, encyclopedias, etc.

Cloud-based services, including heavy application processes, would mean deeper penetration into phones with less RAM, content backup, and a content creation and sharing link that is still untapped.

Be the first to implement 802.21 in your handsets, allowing a seamless handover from WiFi to GSM/GPRS. Lead the charge to fully IP-enabled phones.

Finally, nothing will get better by holding to the status quo and slipping into mediocrity. Now is the time for daring exploits, especially in the places with the most growth potential and where your competition is either light or weak.

Africa is ripe for experimental phones and financing models, what is new coming out of Africa first?

What would you say to Nokia Africa?

June 2, 2010 / HASH / 60 Comments

On Friday I’ll be addressing some of the top business decision makers for Nokia in Africa. My goal is to shake them up a little, make them think deeply and differently about the African market.

Nokia in Africa - little innovation since the nokia 1100 flashlight on a phone

Nokia hasn’t truly innovated in Africa since they put a flashlight in a Nokia 1100 in 2003.

I’ve been asked to discuss my views on how the handset and mobile services business situation is developing, what the opportunities are in those areas and suggestions on how Nokia could lead in this market.

Therein lies the problem: I’m only one person with one opinion, they need to hear from others with different experiences.

What would you say?

Add yours in the comments below. The best will be brought to the Nokia executives attention:

Here are a couple from Twitter.

Top-end or low-end handsets, what does Nokia stand for here? (via Niti Bhan)
Innovate on the user experience for low-end handsets. (via Rombo)
Is Nokia serious about social impact, or is that just face paint?
Africa is ripe for experimental phones and financing models, what is new coming out of Africa first?

Don’t just think cheap handsets. What else would you do within business models and solutions?

Kenya’s Tech Regulation Conundrum

May 27, 2010 / HASH / 4 Comments

A lack of regulation, or at least a more relaxed regulatory environment, have been directly responsible for Kenya becoming a hub of innovation, specifically in the mobile payments and banking space.

The gorilla in Kenya’s room is Safaricom. The posted a Ksh 21billion pre-tax profit yesterday, citing growth and profits in almost all areas, including 137% growth in data services, which they see as the next big cash cow.

Safaricom has directly benefited from this environment and their savvy marketing and business moves have left others in the dust. Businesses should be allowed to make profits and smart strategic decisions rewarded by profit and market position should be expected and encouraged – else why do they do it?

A couple of weeks ago new regulations, put together last year by the CCK, were floated by the Monopolies and Prices Commission. These rules were intended to curtail the massive growth of firms like Safaricom and the ScanGroup, to the detriment of competitors and the market as a whole. Naturally, the only firms upset with these rules were the incumbents.

Just yesterday, Dr. Ndemo, the permanent secretary for information and communications decided that Kenyan professionals who drafted these new rules weren’t professional enough and called in consultants from the United States to review them. While it is true that the Monopolies and Prices Commission is weak in ability to fulfill its mandate, this move comes off as an appeasement by Dr. Ndemo to Safaricom as it came out on the same day that Safaricom was having it’s annual shareholder’s meeting. It makes you wonder who dances to whose tune.

Both sides have good points. Smaller firms do have an uphill battle, not only due to their size, but also due to the unfair practices that larger firms tend to busy themselves with in Kenya to keep the competition at bay. However, large firms also have point. If they are playing fair, should they be punished for being better than everyone else?

Too much regulation in a sector can cripple a country’s innovative business growth, especially technology (see South Africa’s banking rules…). Dominant players have the same effect.

Maybe, instead of adding unnecessary regulations, governments should look to truly and strongly punishing unfair and dirty practices that are already on the books. A 200,000 Ksh ($2,500) fine is the most that Kenya’s monopoly commission can do, and it’s laughable at best.

Where Africa and Technology Collide!