Web 2.0 to the Rescue! Using Web and Text to Beat Shortages in Africa

The beep-beep of a received text on a mobile phone is now becoming a much-needed lifeline to Africans. Zimbabweans, who continue to struggle every day with inflation that has shot to 3,731 percent (Zimbabwe Central Statistical Office), have usd African ingenuity and 21st century technology to survive another day.

New website services have become a literal lifeline for millions suffering from economic and social hardships. At least four new web-based services have stepped in to link expatriate Zimbabweans working outside the country with their relatives back home. All share a common service: people can log into the websites and shop and select what they like to purchase or transfer to their relativs. Once a purchase has been made, a message is sent by mobile phone text to Zimbabwe, either transferring money credits or credits for fuel, food or medical services.

Mukuru.com is the most elaborate and ambitious of the services, and is expanding across Africa (currently in Zimbabwe and South Africa, it is expanding to Kenya, Malawi and Zambia). Started in 2006, it now boasts 8,000 customers and is averaging 1,200 orders per month, ranging from money transfers to fuel and digital satellite television subscriptions. A voucher number sent by mobile phone also allows the recipient to swap a PIN (personal identification) number for coupons redeemable at certain garages.

One of the great advantages of this new technology is its ability to give real-time updates and tracking throughout the transaction. Senders are informed about every stage of the transaction, right up until the gas is gushing into the car’s tank.

“Basically anybody who is able to work will do their best to support family back home,” said Mukuru’s UK-based Nix Davies. “Mukuru’s birth is the result of our inability to sit back and watch, as well as the desperate need to help those back home. The power of an instant SMS being able to provide value to its recipient is inspiring.

“Launching Mukuru.com has not been without its hurdles,” continues Davies. “Promoting a brand with one foot in the first world and having to deal with third world inconsistencies is always challenging.” Mukuru also has plans to expand into travel, freight, mail (letters are printed out and sent within Zimbabwe), and music to help local musicians.

Over at another website, Zimbuyer.com, expatriate Zimbabweans can buy groceries for their relatives at home and make sure that the money is not spent on the wrong thing.
“They’re a lot of people who left Zimbabwe and, for example, have left their children over there,” a spokesman told the BBC’s website. “But sometimes the money they have sent home for the care of the children is diverted into other things. With our service, people buy the stuff – and we deliver them to the recipients so they know what they’re buying.”

Zimbuyer’s website is similar to food shopping websites in developed countries. Prices are listed in British pounds, but the food items are Zimbabwean staples like sadza maize, Cashel Valley Baked Beans and Ingrame Camphor Cream – all delivered to people living in Harare, Chitungwiza and Bulawayo.Zimbuyer’s most popular products are cooking oil and sugar, while “power generators are proving popular because the electricity always goes off nearly every day.”

Another service is Zimland.com, which has a network of 52 supermarkets nationwide. As it starkly boasts on its website, it gives Zimbabweans abroad “a quick and efficient way of ensuring their families do not starve in Zimbabwe.”

The Zimland Superstore offers a variety of hampers of food and essentials for families, from the Madirativhange to the Mafidhlongo to the Hotch Potch Delux, and boys and girls ‘Back to School’ hampers.

Yet another service has taken on the problem of paying for medical and health services. Beepee Medical Services allows Zimbabweans to pay for doctors’ appointments, prescription drugs and surgery for relatives.

Launched in September 2006 by Dr Brighton Chireka and his wife Prisca, a nurse, the business is small but growing.

“Mostly we’re running it as a service to help people,” said Dr Chireka, adding he gets about two consultation bookings a day (US $30 an appointment). “It should be able to pay for itself… We’ve employed people who are working full-time in Zimbabwe. This side (the UK), it’s on a part-time basis to answer the calls.”

By David South, Development Challenges, South-South Solutions

Published: June 2007

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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Youth Surge in the South: A Great Business Opportunity

The world’s youth population (those between the ages of 12 and 24) has now reached a historical high of 1.5 billion – 1.3 billion of whom are in developing countries (World Development Report 2007). Nearly half of the world’s unemployed are youth, and the Middle East and North Africa alone must create 100 million jobs by 2020 to meet demand for work.

Some 130 million people between the ages of 15 and 24 cannot read or write. This enormous cohort of talent and energy in many countries of the South goes untapped. Many youths lack access to quality employment and education opportunities. Yet knowledge of business could make the difference between success and failure for these young people, especially when they come from poor families with few choices. Business is also a great way to help harder-to-reach young people such as child soldiers, young girls, youth affected by HIV/AIDS, gang members, and orphans.

“The youth bulge is happening and it is an enormous opportunity or an enormous challenge: how are all these young people going to have productive and valuable livelihoods and contribute to their communities?,” said Fiona Macauley, founder and president of US-based consulting firm working with entrepreneurs, Making Cents International. “Policy makers are only just realizing they need a change of perspective on health issues, issues of poverty, the education system – all of it needs to respond.”

Micro-entrepreneurship, where risk is low and the amount invested small, offers the most realistic route into business for youth in countries where more formal opportunities are absent. While concepts like micro-credit and social lending have taken off, youth have not received the attention they deserve, according to Macauley. She has also found financial services need to change to encourage youth to save, while also opening up to give them access to credit for micro-entrepreneurship.

To address this problem, Making Cents is organizing a Youth Microenterprise Conference on September 1-12, 2007 in Washington D.C. in order to start building the links and networks between groups working with youth businesses, and to build a global movement for youth economic development. It will tackle three themes: the role of youth, sector strategies, and building partnerships.

“It is important that entrepreneurship is mainstreamed into the school system,” continues Macauley. ”That youth are getting good skills the private sector are looking for: how to budget, costing and pricing, developing entrepreneurial mind sets, problem solving, leading groups, researching, how to be problem solvers. If we can get this into the high school and the elementary school level, imagine how different the workforce would be?”

Other initiatives that are focusing on youth entrepreneurship:

South African Breweries Limited has been providing seed capital to youth businesses run by 18 to 35 year olds through its KickStart program. Successful youth enterprises to come out of the program have included Golden Sunset Fresh Produce, started by 27-year-old Alwyn Jepha to help pay for his law school studies. Starting on a small scale producing vegetables and fruit, the business has grown substantially, making in a month what it once made in a year. The KickStart grant enabled Jepha to buy irrigation equipment and to scale up his operations. At Zanopt, Khetla Leqola has been producing afro-centric optical frame styles, meeting a market need not being met by the global brands. KickStart enabled Leqola to buy the equipment required to produce the frames and run his office.

The Barbados Youth Business Trust has an excellent web portal for youth, with practical tips on starting a youth business and good examples of young people actually doing it. At 29, youth entrepreneur Ailene Harrison-Malcolm found herself unemployed. She had long noticed the lack of clothing for full-bodied women in Barbados, and decided to open her own store, Full Elegance Boutique in 2002. She was able to tap into a mentoring scheme run by the government’s Youth Entrepreneurship Scheme toget a loan. It is this kind of joined up support that youth need.

By David South, Development Challenges, South-South Solutions

Published: May 2007

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

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Computing in Africa is Set to Get a Big Boost

The image of Africa as a technological laggard is set to be seriously challenged as a number of developments converge in 2007. Alongside the booming African mobile phone market – itself now getting global attention for innovation – the African computer scene will soon have both the software and hardware that acknowledge the continent’s unique needs while being affordable. Further challenging stereotypes, the continent’s burgeoning and dynamic open source software movement is the subject of a new film by a Danish filmmaker, and the African-made Ubuntu, Linux-based operating system now has a new user manual to help it attract new adherents.

African technological innovation rarely makes headlines in the West. But a Danish filmmaker is changing these perceptions with his film showing the dynamism and enthusiasm behind the open source software movement in Africa. The yet-untitled film, directed by David Madie, is from Eighty Days Productions and is due for release in the spring of 2007. It follows a young computer entrepreneur, Wire Lunghabo James, from Uganda’s Linux Solutions in Africa, who has been instrumental in building the Web’s presence in the country and in East Africa.

“This film will show the characters fighting for what they believe in. This happens to be Open Source, which I think is an important agenda,” director Madie told Tactical Technology Collective ( www.tacticaltech.org), a website “demystifying technology for non-profits.”

Unlike off-the-shelf software, open source software has many advantages. It is free, and no licence fee is required, so as many copies as necessary can be made. It is fully customisable, so local languages and cultural conditions can be taken into consideration. It is a universal language (the most popular is Linux) and thus it is easier to understand how a specific application works. For developing countries, it has the advantage of empowering local programmers and dymistifying computer programming, removing it from the domain of private companies and large government agencies. In 2005 the New Partnership for African Development (NEPAD) urged African countries to embrace open source software to encourage the growth of indigenous software development.

“I think he (James) is also a role model in the sense that he combines doing a business, with doing social work. To him these things are not opposites: these are things that can perfectly work well together. You can do business in a social manner,” Madie said.

The Ubuntu software programme is a complete, free operating system that emphasizes community, support, and ease of use while refusing to compromise on speed, power, and flexibility. Ubuntu is an ancient African word meaning humanity to others, and its software version is described as Linux for human beings – designed for everyone from computer novices to experts. Ubuntu is the most in-demand Linux system in Africa, and the official guide is aimed at NGOs, home users or small businesses.

One Laptop Per Child Project (OLPC)

In another development, the One Laptop Per Child project (OLPC) has announced the release for general sale of its durable bright green and yellow laptops ready loaded with Linux-based operating systems. Customers in wealthy countries will have to buy two laptops, with the second going to a developing country. Five million will be delivered to the developing world over the summer of 2007. The eventual aim is to sell the machine to developing countries for US $100, but the current cost of the machine is about US $150. The OLPC laptop’s software has been designed to work specifically in an educational context. It has built-in wireless networking and video conferencing so that groups of children can work together. The OLPC project is working with the search engine Google, who will act as “the glue to bind all these kids together”. Google will also help the children publish their work on the internet.

The One Laptop Per Child project (http://wiki.laptop.org/go/Home) has struck its first deal with Rwanda’s president Paul Kagame to provide every school pupil with a laptop computer within the next five years. The laptops and all the support costs will be covered by OLPC.

By David South, Development Challenges, South-South Solutions

Published: January 2007

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

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