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Chasing the Sun (Tanzania to Zambia)

November 28, 2014 / hash / Comments Off

Catching up on a few updates at once here, you can read about Day 2 of our trip here.

It’s 6am in Lusaka, Zambia as I write this. The last two days have been a blur as we covered over 1,700 kilometers from Dodoma to Lusaka in what can only be considered as marathon sessions from sunup to just after sundown. Fortunately, both Tanzania and Zambia have some of the best roads we’ve seen, and the motorcycles and car all behaved well with only one slow puncture the whole way. We took small breaks every 100-200km in order to rest and move around a bit, but we’re still quite sore and ready for this day to do no travel.

Parking lot mechanics in Dodoma, Tanzania

Mark, Juliana and Joel setting up the GoPro

A dawn stop on the way out of Dodoma to Iringa, Tanzania

Grabbing lunch somewhere in southern Tanzania

The border crossing from Tanzania into Zambia at Dunduma left a little something to be desired. What felt like it should have taken about 1.5 hours at most, ended up taking 3+ hours, which meant our last 50km into a campsite were done in the dark on the only section of bad road we’ve seen. People did warn us of this, so it wasn’t unexpected. However, the reason wasn’t because of long lines of trucks slowing us down, it was due to inefficiency in the process itself at both immigration and customs.

From here, our days get a little more sane, with a run down through Victoria Falls into Botswana and then finally Johannesburg. As an aside, it turns out that half-way between Nairobi and Jo’burg is almost exactly at a small town called Serenje, Zambia – 2,200km from each.

Time at Bongohive

We pushed so hard to get to Lusaka by now so that we would be here in time for the events at Bongohive, Lusaka’s tech hub, which were all scheduled for today.

1pm – Demo of BRCK (Philip Walton and Reg Orton of the BRCK team)
3pm – Meeting with Startups (Mark Kamauof the iHub UX Lab) – HCD, UX, DT
4:30pm – Meeting with Startups (Erik) – Investment readiness, experiences with Savannah Fund, getting into new markets etc
6pm – Keynote at Startup Weekend Lusaka (Erik and Juliana Rotich)

Lukongo Lindunda is the co-founder of the space, and we’ve known each other for years, since before they got it started back in 2011. I’ve been looking forward to seeing everyone here in the tech space for a while, and I’m interested in hearing what’s brewing in the startup scene.

Some of the startups that I’ve heard about from Zambia include:

ShopZed.com
Bantu Babel
Venivi
DotCom Zambia, BusTickets
TeleDoctor
SCND Genesis

If you’re part of the tech community in Zambia, I hope you can swing by, and we’re all looking forward to seeing you as well.

Lessons From the Trip

Since we’ve started this trip I’ve been thinking a lot about communications, as one would expect with a BRCK expedition, and especially mobile comms. We outfitted the truck with a omni-directional Poynting antenna on the front bumper, hooked up into the car, where we can also connect it to an amplifier if needed. As we drive down the road, we have a pretty good mobile WiFi hotspot, as long as we’re in range of a tower.

The mobile phone kiosk, a mainstay of rural Africa

The last few years have seen a number of countries implement a registration process to buy SIM cards (ostensibly this is for security though it’s not been proven to be useful for anything more than big brother activities by governments). Even buying a SIM card is then a process of identification (usually passport or drivers license), so you have to budget for that 30-60 minutes to get that done, since it’s usually filling out a form by hand.

Registering an MTN SIM card in Zambia

You then purchase credit for the SIM card and load it up – this is the easiest part.

Now you get into the “mystery meat” part of the process, which is how do you turn that airtime you just bought into internet credit? Each network in each country has a different way of doing this, some combination of USSD or SMS to get it going.

A couple things come to mind now when we look at the BRCK.

First, we need a terminal screen in the BRCK interface for us to do all of this from the device itself. Right now we find ourselves popping out the SIM card and using a phone (Mozilla’s 3-SIM phone is amazing for this purpose), and then inserting it back into the BRCK when done.

Second, there needs to be a database of this “airtime to internet data” information that we can all use. I’m not sure how best to get this going, but I know it would be immensely useful when you drop into a new country to have this at your fingertips.

We’re already working on the first issue, of USSD/SMS interface, but it’s complicated, so it’s taking longer than we’d like. This trip is about learning, and we’re already finding a lot of things to do better. Look for more posts on the BRCK blog from the others as well.

Great roads and a bit of engine trouble (day 1)

November 24, 2014 / hash / 1 Comment

(Cross posted from the BRCK blog)

I’m writing this blog post using my Mac, connected to a BRCK which is connected to a satellite internet connection using an Inmarsat iSavi device, somewhere about 100km from Arusha towards Dodoma. Inmarsat gave us this test device, a small unit, made for global travelers, so we could test out what worked and give them feedback on their tools. It also helps us figure out what connecting to the internet looks like when you’re beyond the edge of the mobile phone signal in Africa.

Here’s Reg, using his phone to do the same at our campground this evening:

Reg using the BRCK and iSavi in Tanzania

The Journey

We left at 5:30am from Nairobi to beat the traffic out of the city. With the beautiful new roads, we were at the Namanga border by 8am and cleared by 10am. Before you go on one of these trips, make it easy for yourself and get the following:

Carnet de Passage for each vehicle (get this via AA)
COMESA insurance (get via your insurance company, or buy at the border)
International driver’s license (get via AA)
Yellow fever card
Passport

By noon we were in Arusha, and took a chance to see the cafe that Pete Owiti (of Pete’s Coffee in Nairobi) set up with some Tanzanians, called Africafe. If you ever find yourself in Arusha, this is the first place you should go. Great food, good coffee, right in the middle of everything.

Knowing we were only going about 100km more today, we set off around 1pm. We got to a roundabout, and I knew which direction the main road was, so even though Philip mentioned we should go right, I went left to the main road. 45 minutes later we realized my mistake when Philip checked his GPS and realized we were further away than we were supposed to be.

Lesson learned: always listen to your cofounders (especially the one with the GPS).

With many sighs, we turned around and went back to Arusha, where Reg had been smart enough to stay with the Land Rover when he realized we went the wrong way. We quickly split off in the correct direction, aiming to get to the camping spot by 4pm latest.

As we were sitting in traffic in Arusha, Joel says, “Erik, your bike is smoking.” I replied that it was likely just the car I was parked next to. Nope. Sure enough, I was leaking oil… For those of you who don’t ride motorcycles, this is the last thing you want to hear when on the front end of a 4,400km trip. I ride a 2007 Suzuki DR650 – they have some of the most bullet-proof engines, and are perfect for Africa’s roads.

Working on the DR650 in Arusha

Fortune smiled upon us, and we were pointed towards Arusha Art Limited, which turned out to be an amazing garage (the best I’ve ever seen in Africa). Their director, Hemal Sachdev helped us out by helping to troubleshoot what could be wrong, and even fabricating a high-pressure oil hose, with compression fittings on the spot. There was oil everywhere, so we washed it off and kept going.

Lesson learned: there are a lot of people willing to help you in your journey, especially if you ask nicely.

5 km down the road, I was still smoking… Thanks to Hemal’s help, we knew what the problem wasn’t. It was now that we chanced to notice that the problem seemed to be coming from the timing chain setting hole. We realized this could be filled by a normal M5 screw, so got trucking to the campground where we could let the engine cool down and screw it in.

Now, I sit here in Wild Palms Camp, some place we saw on the side of the road near the Tarangiri game reserve. For 10,000 Tanzania Shillings ($6) each, you get a patch of ground to put a tent, there is a banda with table/chairs, and there are even some showers and toilets. Not real camping, but definitely nice after a day on the bike!

Mobile and Internet Numbers for East Africa (2013 edition)

July 17, 2013 / HASH / 1 Comment

iHub Research continues to put out great research for clients. They also take time to put together the numbers for everyone else as far as what’s going on in our part of Africa.

Mobile & Internet Stats for East Africa

The most recent stats for East Africa’s mobile and internet usage have been put into an new infographic.

Mobile and Internet use in East Africa, an infographic by iHub Research

Here is a dump of the data used for this infographic:

Kenya Mobile Statistics
(Population: 44,037,656 July 2013 estimate)
30,429,351 mobile subscribers
16,236,583 (41%) Internet users
3.6 billion outgoing & incoming SMS
251,567 fixed lines
78% teledensity

Tanzania Mobile Statistics
(Population: 48,261,942 July 2013 estimate)
27,395,650 mobile subscribers
5,308,814(11%) Internet users
4.3 billion outgoing & incoming SMS
176,367 fixed lines
61% teledensity
7,662,504,921 voice traffic

Uganda Mobile Statistics
(Population: 34,758,809 July 2013 estimate)
18,300,000 mobile subscribers
4,800,000 (3.2%) Internet users
520 million outgoing & incoming SMS
464,849 fixed lines
52% teledensity
215,110,452 voice traffic

Rwanda Mobile Statistics
(Population: 12,012,589 July 2013 estimate)
6,039,615 mobile subscribers
903,964 Internet users
26 million outgoing & incoming SMS
42,323 fixed lines
57% teledensity
1,470,290,068 voice traffic

Burundi Mobile Statistics
(Population: 10,888,321 July 2013 estimate)
2,995,000 mobile subscribers
157,800 Internet users
80,039 fixed lines
2% teledensity
157,800 voice traffic

Sources:
http://www.telegeography.com/products/commsupdate/articles/2013/03/19/u-com-burundi-adds-mobile-banking-to-drive-customer-growth/
http://www.independent.co.ug/business/business-news/7748-airtel-warid-merger-shakes-market
http://www.independent.co.ug/news/news-analysis/7332-telecoms-gear-for-turf-wars-in-2013
http://www.independent.co.ug/business/business-news/7748-airtel-warid-merger-shakes-market
http://www.reuters.com/article/2011/07/22/ozabs-econet-burundi-subscribers-idAFJOE76L0EY20110722
http://www.cio.co.ke/news/top-stories/Africell-buys-Tigo-to-expand-in-Sierra-Leone
http://dlca.logcluster.org/BDI/logistics-services/index.html
CIA World Factbook

2011/2012 Stats and Infographic

Here’s the 2011/2012 numbers for all of the countries in East Africa, plus some bonus numbers around mobile money at that time.

2011 and 2012 East Africa mobile and internet statistics infographic by iHub Research

See the old ones from 2011 in Uganda, Kenya and Tanzania. You can also see the some 2012 numbers on the iHub that they put together as well.

Launching the Savannah Fund in East Africa

June 6, 2012 / HASH / 16 Comments

I’m happy to finally be able to publicly announce the Savannah Fund, an accelerator fund focused on finding and investing in East Africa’s highest potential pre-revenue startups. It’s a partnership between Mbwana Alliy, Paul Bragiel and myself – along with a great list of limited partners (LPs) who are investing in the fund.

The idea is to bring the Silicon Valley-style accelerator model to Africa, seeing what needs to be tweaked to make it work for our region. It’s a small fund at $10m, with most of the activity focused on classes of 5 startups at a time being brought on board and invested in. They’ll get $25,000 for 15% equity, and have 3-6 months to prove themselves. Those who fail either pivot or leave, those who gain traction have a chance at follow-on funding. A portion of the fund will be invested at the $100-200k range where we’ll look at follow-on funding for the startups in our program, and also at other high-growth tech companies in the region.

We’ll be looking throughout the region for these investments, from Rwanda and Tanzania to Uganda, South Sudan and Kenya. You can put in an application now, though the first cohort will not be accepted into the program until the end of the Summer (Aug/Sept timeframe).

At this stage we’ve raised half of the fund, which allows us to get moving. 35% of the fund has been raised from local investors, such as Karanja Macharia from Mobile Planet. We also have big US names on board, such as Yelp co-founder Russ Simmons, Tim Draper, Dave McClure, and Roger Dickey and Dali Kilani of Zynga.

Why I’m involved

The reason I’m involved with Savannah Fund is very simple, I’m focused on getting the foundation of our technology future in place. In East Africa, we don’t have enough mid-cap investment opportunities in tech, and the only way to change that is increase the size of the base of that success pyramid.

Some history. Over a year ago I met with Ben Matranga from the Soros Economic Development Fund who noted that there were a number of interesting small startups, but they were too small for them to invest in. If there was a smaller fund, someone focused on this space, they’d be interested in using them as a vector to stir up the bottom and help uncover more successful companies over the next 3-5 years. At Pivot 25 last year I met up with Mbwana and we started to discuss the fact that most startups here aren’t ready for VC fund and how we might be the right people to create the needed vehicle.

Fast forward to September 2011 and Paul, Mbwana and I decided to go ahead and do it. Hours and months of due diligence, pitching and phone calls later we finally are getting it off the ground.

My role is to help find the new companies and to connect them to the businesses in the area.
Mbwana’s role is to manage the fund and the startups in it.
Paul’s role is to connect the Savannah Fund startups to Silicon Valley businesses and investors.

As Mbwana says, “We’re a fund for entrepreneurs by entrepreneurs”. We’re here for the small guy and our goal is to find those risky tech startups with hungry, passionate founders that will do the hard work it takes to become a successful company.

Find us on Twitter at @SavannahFund

Will The Real Payment Disruptor Please Stand Up

February 19, 2012 / HASH / 14 Comments

Farhad Manjoo makes a compelling argument for why the real winners of the payments revolution are the same players we already know, the credit card companies and the banks, in his, “Donâ€™t mess with credit: Why the future of payments is already in your pocket.”

“Nearly every start-up working in payments is simply creating a new front end for your credit card. Thatâ€™s not a small thing; we need new ways to use our credit cards. But we shouldnâ€™t forget the true winners in this new marketplaceâ€”whatever innovations we see in payments over the next few years, thereâ€™s a very good chance that most of the rewards will flow to Visa and MasterCard.”

This is true… if you live in the US or Europe.

It’s also why Mpesa is so important, as it represents a new form as well as a new source.

Mpesa destroys the paradigm of payments as we knew it

It’s a good thing that Mpesa happened in Africa. It offered a new way of thinking about money and payments, without the legacy baggage of banks and regulations meant for another century. The powerful banking interest were held at bay, not by great power, but by indifference – this is Africa afterall, who cares about this market?

With Mpesa, and without a bank account:

People can send and receive money.
People can store up to $1000 in the system, creating a pseudo-savings account.
There are no credit card companies involved.
There are no banks involved.

Mpesa is big now too, big enough to garner a lot of attention from the the credit card companies and banks. M-PESA has over 14 million users in Kenya, 9 million in Tanzania, and hundreds of thousands in Afghanistan and South Africa now too. It now processes more transactions domestically in Kenya than Western Union does globally, somewhere in the range of 25% of Kenya’s GDP is transacted on it.

The banks actively lobby against mobile-based payment and money systems now, globally, as it constitutes a massive competitive threat that they are unable to compete with due to a multitude of reasons, one of which is simple transaction costs. The credit card companies are watching closely too, and moving. Mastercard and Visa both are working on mobile offerings, seeking to link with mobile operators in order to bypass a would be competitor.

Mpesa isn’t perfect – we need a payment system that works across mobile operators and can be synced (easily) with any bank, if needed. While it could improve, it’s still worth pointing out the really big missed opportunity here is by Vodafone. Like I’ve said before, if Mpesa was rolled out at as an independent company led by Michael Joseph, it could battle the credit card companies of the world and unseat them in many markets.

What’s interesting to me is that in the arguments in the US and Europe on “the future of payments” the real innovation, with real numbers, isn’t being mentioned.

Update. some new blog posts on this topic:
Could we live without cash?
Payments, the more things change…

Pivot East: East Africa’s Startup Pitching Competition

February 2, 2012 / HASH / 2 Comments

Mark your calendars, buy your tickets, submit your applications!

We’re ramping up to the Pivot East pitching competition, where the best startups in East Africa come to show what they have, pitch their startup to investors, media and the judges for a chance to win the prize money.

Pivot East will be held at Ole Sereni Hotel in Nairobi, June 5th and 6th. Last year we had over 100 applications for the 25 slots, and we’re expecting even more after seeing how well Pivot25 did last year (writeups by TIME Magazine and CNN). Last year we saw startups from Kenya, Uganda, Rwanda and Tanzania, and this year we’re hoping to see some from South Sudan and Somalia as well.

Getting more information

Pivot East is put on by the m:lab East Africa, an incubator for startups in the mobile apps and services space. All profits go to support the facility. This year support comes from Samsung, and we’ll be announcing a few more big names in the coming weeks. If you’d like to be one of them, contact us.

If you have any questions, we’re having a meeting a Baraza at the iHub on Monday the 6th of February from 2.30pm to 3.30pm. If you’re a startup wanting to know more, or are media or an investor, come by and talk to the organizing team.

[Note: for more on last year’s here is my blog post retrospective.]

UPDATE:
The Pivot East Team will be coming to Uganda on the 20th February 2011 at Makerere. You can book your tickets for the event on the link below:

http://pivotuganda.eventbrite.com/

Mobile Apps in Africa (2011 Report)

September 26, 2011 / HASH / 6 Comments

I maintain that Russell Southwood and his Balancing Act newsletter and reports are some of the best material on pan-African technology and broadcast information that you can find anywhere. Their recent “Mobile apps for Africa: Strategies to make sense of free and paid apps” report is one of them, and here are some interesting tidbits from it.

The report is broken into three parts: device, developers and distribution.

Device

South Africa, Egypt, Nigeria, Morocco, Ghana, Kenya and Tanzania all are good markets for apps, due to their population, 3g pickup and smartphone penetration. It should be noted that the highest smartphone penetration is in South Africa at 10%, though the high-potential countries are expected to grow by 8-10% per year over the next 3-5 years.

“Interestingly, infotainment activities score high off-line (using the phoneâ€™s features) and online (mobile Internet).”

Balancing Act provides a very interesting visual of what the “Handset pyramid shift” looks like in Africa.

Africa's handset pyramid, and its shift

Developers

The development of smartphone applications in particular commercial apps will depend on the rate and level of smartphone adoption. Developers in countries like South Africa, Kenya or Egypt with encouraging smartphone penetration rates have more opportunities in terms of apps development and uptake by potential users.

The major international apps stores (Apple, Android, etc) have set a figure of 70% of the revenue generated by apps will be going to the developer. This is very good news for African developers because so far with SMS based content, the revenue sharing model is not in favour of developers since less than 30% of the revenue generated by the content is going to the author. It is African mobile operators that make the most out of them as they take a minimum of 50% of the revenue generated by SMS services. The major international apps stores also offer additional revenue to developers via advertising and in-apps purchases. These revenue streams are becoming more and more significant for developers.

Building into the next section on distribution is the issue that developers have with creating apps for the international app stores. It’s very difficult, and often impossible, to sell apps on them and for African customers to buy them.

Distribution

The major consequence of the â€œsuccess storyâ€ of the apps store is that it
establishes a distribution model for mobile content that breaks away from the monopoly and exclusivity that mobile operators have enjoyed so far on the delivery of services to their mobile subscribers. Today the mobile apps distribution ecosystem can roughly be divided in 4 main groups:

Operating system app stores
Handset manufacturerâ€™s app stores
Mobile operatorsâ€™ app stores
Independent app stores

So far, most African mobile operators have been little affected because smartphone penetration rates are very low in most African countries and also because African smartphone users still have access issues to the full portfolio of international apps stores.

The report goes on to express Balancing Act’s thoughts on how mobile operators can get into and take advantage of mobile app stores, “While revenue potentials are promising what else do mobile operators have to consider if they want to roll out their own apps store?” The report establishes the following 8 recommendations:

Be OS agnostic
Know the devices on your network
Use â€œwhite labelâ€ apps store
Source international content from third party content providers
Donâ€™t forget about additional revenue streams
Build a strong local flavour to your apps store
Make apps affordable to your subscribers
Use carrier billing

And there’s More

Unfortunately, I can’t put all of the good stuff in this blog post. There are a lot more interesting points in the report, and you can buy it here. Amongst some of the best are:

What smartphones do South Africans want?
Nigerians love their BlackBerry
Examples of mobile apps start-ups companies in Africa
Morocco: Mobile internet users and penetration rate
Mobile Internet subscribers and market share per operator
Advertising and in-apps purchases potential income for developers

Africa’s Android Invasion

September 13, 2011 / HASH / 12 Comments

Mobile phone manufacturers, operators and of course Google started a big push on Android into Africa this year. Samsung, HTC and Huawei are moving Android phones into the market. Some operators are seeing the signals and starting to subsidize Android handsets to get them to a price point that is palatable by a larger number of buyers. Google continues to push for local content, works with developers, does g-[country] events and puts on contests.

While the primary phones in Africa are still feature phones, Android has made a beachhead on the continent and will continue to roll forward. I believe we’ll look back at the landing of the IDEOS phone earlier this year in Kenya as an inflection point, where in 2 years we’ll define the times up until then as, “before Android”.

Developers as Leading Indicators

I see what the local programmers working on as a leading indicator of what everyone else will be using in the next 2-3 years. In the iHub, on the mobile side, we see a lot of programmers excited about, and working on, Android apps. It’s a balance between that and the SMS/USSD core infrastructure apps that Kenya is well known for.

Today, at the g-Kenya event, Google announced the three winners of their Android Developer Challenge for Sub-Saharan Africa. Each of the winners will receive $25,000.

Entertainment / Media / Games – Afrinolly (Nigeria)
Social Networking / Communication – Olalashe (Kenya)
Productivity / Tools / Local / Geo – Shoppers’ Delight (Kenya)

There were 29 finalists came from the following 10 countries, which is a pretty decent spread. However, you can tell from the number of apps in each country where the real powerhouses are.

7 South Africa
6 Kenya
5 Nigeria
3 Ghana
2 Uganda
2 Malawi
1 Senegal
1 Togo
1 Tanzania
1 Republic of Guinea

The one pain point that developers have right now is that they feel pressure to support multiple operating systems. This is Primarily between Android and Symbian if the app is focused on Africa, if the app is global, then add in iOS and possibly Windows and Blackberry.

It will be interesting to see what happens with feature rich HTML5 and how it plays out into the mobile space. At this point, either we’ll see a lot of mobile web apps (working across PCs and all phones with real browsers) or we’ll see a lot of apps. Even if we do see the client-side Android apps, I’m guessing they’ll be more thin-clients than anything else. Only time will tell though.

The Future of Consumer Mobiles in Africa

The years ahead are hard to predict. However, in Africa I think we’ll see an increase in Android handsets and mobile web usage, and a continued decrease in the cost of low-end smartphones and data connectivity.

If I’m an operator, I see the writing on the wall in regards to SMS and USSD apps, and I’m trying to move my user base to data. This means more subsidized phones, and attractive data packages that are wide-spread across my region. I’m making deals with content providers and offering zero-rated (or reverse-billing) packages on data to large content houses in order to increase usage.

If I’m a manufacturer, I’m providing an array of Android handsets that allow my aspirational users to move up from a feature phone to a (we hope soon) $50 Android, then up to a tablet eventually. I’m doing whatever it takes to decrease costs on the low-end to get mindshare. If I don’t do Android (Nokia, RIM) then I’m doubling down on the mobile web and pushing for better browsers on my phones.

If I’m Google, I keep having dev events and competitions, but I also push for better localized payment options for developers in Africa. On top of that, I’m looking for an operator billing link for consumers with attractive percentages for app publishers, that way I attract them and everyone makes more money.

Of course, there’s more, but that’s where I’d start.

The Future… is Here! [Pivot 25 Video]

May 26, 2011 / HASH / Comments Off

PIVOT25: East Africa’s Biggest Mobile Tech Event from Pivot25 Conference on Vimeo.

The next big thing in African Tech has arrived. Pivot 25 is here! The region’s top 25 mobile tech startups pitch against each other June 14-15 in Nairobi, Kenya at the Ole Sereni Hotel.

Go to pivot25.com for tickets and info.

Video by The ARK

Where Africa and Technology Collide!