Kenyan Book Company Brings Online Sales to East Africa

The Internet has revolutionized retail sales in many developed countries – and nowhere more so than for booksellers. The ability to offer an almost unlimited supply of books through a website is revolutionizing the way people shop and giving life to books long out of print or by unknown authors.

Kenya has recently gained a reputation for doing things differently in Africa and making great strides when it comes to using information technologies. And the next development in this story is the launch of a Kenyan online book shop modelled on the successful U.S. online bookseller Amazon (amazon.com).

A book boom is well underway across the global South. Literary festivals continue to expand, from Colombia in South America to India to Nigeria in West Africa, and so do sales of books, newspapers and magazines. While the publishing industries in developed countries despair at the impact of digital media on their profits, in the global South, rising prosperity and literacy are fuelling greater interest in reading and a growing print publishing industry. For example, India is experiencing 15-per-cent-a-year growth for its publishing industry, which is valued at nearly US $2 billion (Frankfurt Book Fair).

Kenya’s Text Book Centre (TCB) (textbookcentre.com), considered one of the country’s most reputable booksellers, has launched its own online book selling portal and its “eBook web store”. It is targeting readers across East Africa and sells books in 14 categories. Being Kenyan, it is taking an innovative approach that recognizes the large numbers of people who are doing all their transactions over mobile phones. The book portal allows customers to make purchases with their mobile phones using mobile money. This system uses the Kopo Kopo (kopokopo.com) software platform, which allows small and medium sized businesses to accept mobile phone payments.

Kopo Kopo was first developed in Sierra Leone in 2011, before being further prototyped in Kenya. Kopo Kopo wanted to develop an effective mobile platform to help small and medium sized businesses to better interact with their customers. The Kopo Kopo service was officially launched in February 2012 and is partnered with Safaricom, using its M-PESA Buy Goods service. It is being currently used by hundreds of businesses, from “salons to restaurants to office supply stores”, according to Kopo Kopo’s website.

As an added benefit, the Kenyan online book platform is joined by a new marketplace for thousands of African ebooks. This part of the service is called eKitabu (ekitabu.com).

EKitabu will be a big boost to the continent’s authors and also open up new opportunities for budding authors who previously would have struggled to get published and distribute their work. If the ebook web store follows the dynamic of online booksellers in more developed markets, then this ability to gain exposure for author’s work and find an audience could also attract bigger publishers and spark interest in international book deals for formerly obscure writers.

The Text Book Centre was founded in 1964 by two Indian business partners in Kenya, Mr. SV Shah and Mr. MJ Rughani, and is now considered the leading bookstore in Kenya, specializing in leisure and educational books, according to its website.

Headquartered in Nairobi’s central business district, it focuses on providing books for the educational sector and strives to be “East Africa’s leading leisure and educational bookstore and office support resource centre”. It also supplies to customers in Uganda, Sudan, Somalia, Malawi, Zanzibar and Tanzania.

By David South, Development Challenges, South-South Solutions

Published: March 2013

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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African Innovation Helps Make Banking Transactions Safer

As economies grow in Africa, more and more people are conducting their financial transactions electronically. This can be either through mobile phones and digital devices, or through the hole-in-the-wall of the automatic teller machine, or ATM.

These short cuts mean many people no longer have to endure long line-ups at banks to conduct day-to-day financial transactions. This convenience is revolutionizing banking for many millions of people, but there is a risk: fraud and theft. Both are rising, and are costing customers and banks, both in cash and in damage to the reputation of electronic banking.

Criminal gangs and lone individuals alike are behind this crime. Most notorious are the “carding” and “skimming” gangs, who plant devices on ATMs to read plastic bank cards and steal victims’ money. Mobile devices can also be “hacked” by sophisticated criminal gangs and the data stolen and used to plunder bank accounts. Lone thieves also take people hostage and force them to use their card to withdraw money. A crime victim is usually forced to give over his or her Personal Identification Number (PIN), which the thief then uses to withdraw cash from the ATM.

But just as thieves have become cleverer about the new opportunities created by digital financial transactions, enterprising start-ups are developing innovations to improve financial security.

One Kenyan start-up is hoping to be a pioneer in innovative financial safety software for mobile devices and ATMs. Usalama Innovative Systems, LTD. (http://usalama.biz/), co-owned by graduate student and lead programmer Denis Karema (deniskarema.com), has already been singled out for a CIO magazine’s CIO100 Award in Enterprise Innovation in 2011 (http://www.cio.com/cio-awards/cio100).

Karema has been working in information technology since 2008 and has a background in computer science. He has built his experience while working on various information technology projects in East Africa.

The ambitious company says it wants to be “the leading provider of innovative solutions to financial entities in Africa by 2015.” Usalama has developed various systems pending patents and copyrights and has built up experience in deploying enterprise information technology.

Usalama is seeking additional funding from investors for multiple innovations to protect customer financial transactions. One of them is an ATM solution, which the company claims can reduce theft by over 90 per cent. Speaking with the Business Daily Africa website, Karema explained the anti-fraud application, dubbed Safety Pin.

“When someone approaches you or when you are involved in a carjacking, or one of those unfortunate incidences, you give them your card or PIN as they ask for it, but when they get to the machine it does not treat them the same way as it does you,” Karema said.

The thief is presented with what looks like the victim’s bank account but actually only has 10 per cent of their cash on display. The thief will then withdraw this cash and think they have cleaned out the victim’s bank account.

It is a clever solution which doesn’t entirely block the thief from receiving money from the ATM, but just gives them a small portion of the amount in the account. The idea is to fulfil the psychological need of the thief to get some cash in the robbery attempt, so they will then release the hostage and go away.

“We are working on reducing the amounts that can be lost by up to 90 per cent, so it means if I have 100,000 shillings in my account, only 10,000 shillings can be lost through fraud,” Karema said.

The amount that is stolen can be covered by bank insurance policies so that the customer does not suffer a serious financial loss.

“(The) good thing about this application, first of all, is this hasn’t been done before,” Karema said. “People have come close to creating ATM anti-fraud measures, like asking you to put your PIN in reverse. But they don’t seem to work. For each of them, you are ending up having your money stolen and then following up with the fraudster. So our application prevents the money from being stolen in the first place. So our preventative measure is better than a curative one when money is involved. And also the application is applicable globally.

“We intend to have this implemented in each and every commercial bank, not only in Africa, but the rest of the world.

“A bank can recoup investment in our application within the first year [by avoiding the loss of clients and funds from fraud]. Aside from that, the bank is also able to receive complete and detailed reports each and every time a fraud occurs and so it makes it easier for the bank to monitor trends and also to know which of their outlets are having more and more fraud-related cases.”

Other innovations Usalama has been developing include Usalama Pin, which helps commercial banks monitor fraud in real time; Usalama Spy, which gives more detailed fraud reports and analyzes the information; Home Bank, a way to offer 24/7 banking to customers so they can deposit the money directly into savings accounts without delay; and Usalama Mobile, a mobile banking and money service solution.

Usalama believes the suite of solutions will help banks to retain current customers and make their financial transactions safer, attracting so-called “high net worth” clients. Usalama believes this will help banks in Africa grow their number of customers and cash reserves.

“We are always thinking about innovation because we feel that innovation is the key thing to developing sustainable enterprises,” Karema believes.

By David South, Development Challenges, South-South Solutions

Published: March 2013

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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New Apps Make Driving and Travelling in Egypt Easier, Safer

Mobile phones are ubiquitous across the global South. They have spawned whole new business opportunities and changed the way people solve problems and find solutions.

Sub-Saharan Africa is now home to approximately 650 million mobile phone subscribers, more than the United States and the European Union (World Bank).  A recent World Bank report estimated mobile phones led directly to the creation of 5 million jobs in Africa in 2012, contributing to seven per cent of Africa’s gross domestic product (GDP).

Mobile phones have also led to contests and challenges, set up to spark further innovation in this area and spur the development of so-called “apps”, or applications, to run on these electronic devices.

These prizes encourage and reward useful innovation that directly tackles the problems and challenges of the South.

In Cairo, Egypt – a city notorious for some of the worst traffic congestion in the world – many have been trying to find smart solutions to the gridlock. The World Bank says in its Cairo Traffic Congestion Study that the annual cost of congestion in Cairo is estimated at up to US $8 billion. This is four per cent of Egypt’s gross domestic product (GDP) – four times the impact on national GDP experienced by other comparable large cities. The study found that at least 1,000 Cairo residents die each year in traffic-related accidents, more than half of them pedestrians. And rapid growth in the city is making it ever-harder to get on top of the problem.

Rising traffic congestion is a problem around the world. In the United States, traffic jumped 236 per cent as the population grew by 20 per cent between 1982 and 2001 (IBM).

The IBM Commuter Pain Study conducted in 2011, ranking the emotional and economic toll of commuting in 20 international cities, found that the commute in Beijing is four times more painful than the commute in Los Angeles or New York, and seven times more painful than the commute in Stockholm.

Commuter pain leads to productivity loss as people lose time stuck in traffic and fuel is wasted as engines idle in traffic jams – not to mention damage to the environment from the increased pollution.

According to the World Business Council for Sustainable Development, 95 per cent of congestion growth in the coming years will be in developing countries. Even in developed countries like the United States, in 2000, the average driver experienced 27 hours of delays (up seven hours from 1980) (MIT Press). This ballooned to 136 hours in Los Angeles.

Developing countries are seeing vehicle numbers rise by between 10 and 30 per cent per year (World Bank). In economic hotspots, growth is even faster.

The Cairo Transport App Challenge (https://www.facebook.com/CairoTransportAppChallenge) is a contest aimed at taming the city’s traffic chaos. It is hosted by the Technology Innovation Entrepreneurship Center (TIEC) (http://www.tiec.gov.eg/en-us/Pages/default.aspx) and is organized by the World Bank in collaboration with others.

The contest’s press release says it aims to connect transport and urban development experts with volunteer technology communities to build “applications to address pressing transport challenges in Cairo through leveraging the new information and communication technologies (ICT) – such as mobile phones, smartphones and GPS-enabled devices – as well as the talent of Egyptian software developers and innovators.”

The first winner of the US $3,000 in prize money is a mobile phone app that helps drivers get help on the road and with car maintenance.

Users can use the Belya app to find the best routes, and to get help if their vehicle breaks down. The app is essentially a portable virtual car mechanic. It uses Global Positioning System (GPS) technology to locate service centres, which are then contacted when somebody needs help. The app gives details to the repair shop on what is wrong, the date and time.

“It is also linked to the General Traffic Administration, to provide quick and regular updates of the traffic situation,” according to a statement from Egypt’s Ministry of Communications and Information Technology, which awarded the prize.

The content’s second prize was won by E-mokhalfa (http://www.emokhalfa.com/emokhalfa/),which helps communities create safer roads by using peer pressure to make drivers behave better. Third place went to the app called “Where is my bus?” (https://twitter.com/AutobeesyFeen). It helps passengers find bus stations, routes, journey times and all mass transport options on their mobile phones.

By David South, Development Challenges, South-South Solutions

Published: March 2013

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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Powerful Solar Light Spurring Income-Making Opportunities

 

A clever innovator from India has built a highly durable solar lantern that also doubles as a mobile phone charger.

The Sunlite lantern – the JS 30 MOB Sunlite – made by Sunlite Solar (sunlite-solar.com) is an LED (http://en.wikipedia.org/wiki/Light-emitting_diode) light packed with clever innovations. It is completely self-contained and does not require any extra parts, cables or separate solar panel to charge it. The clever design includes a pop-up, fold-down handle, a powerful solar PV (photovoltaic) panel on its top that – with a day out in the sun – charges the lantern’s battery enough to provide around 8 hours of 360-degree light when the sun goes down. It is also highly durable and moisture and heat resistant and can withstand a drop on a hard floor.

The manufacturer of the Sunlite lantern is India Impex, which focuses on making and exporting high quality off-grid solar lighting products and sees itself as a “socially driven company.” Founded in 2009, it has built up its reputation as a global vendor to humanitarian and relief agencies.

To date, the Sunlite lantern has been distributed to people following Japan’s 2011 earthquake and tsunami, after Thailand’s 2011 floods and to refugees caught up in the ongoing crisis in Syria.

“For the size of the lamp, for the number of hours, for the features we give, including the mobile (phone) charging – we are 100 per cent portable – it is all integrated,” said Sunlite representative Divyesh Thakkar, while demonstrating the lantern at the 2012 Global South-South Development Expo, held recently in Vienna, Austria (southsouthexpo.org).

The mobile phone charging capability has been seized as a great way to turn the lantern into an income-generating opportunity. Already, people are forming co-ops and charging rent time on the lantern for recharging mobile phones. And there are a few clever tweaks to the lantern to help control this.

“I don’t want this to be abused – I want it to be smart,” said Thakkar. “When someone comes in and charges the mobile phone and forgets, it is going to cut off after 20 minutes.”

Sunlite lanterns have many uses, according to the product’s maker. One aspect the manufacturer is emphasizing is the importance of light to the security of women and children. There is overwhelming evidence that better lighting makes for a more secure environment, and allows people to do more things safely at night. Children can look out for environmental threats such as poisonous snakes and spiders, and women and girls can feel safe doing things like going to the toilet without worrying that somebody might attack them in the dark.

Solar power is being seen as a way to get electricity to people in areas bypassed by conventional electricity grid networks. It also helps move people away from expensive, polluting and dangerous alternatives such as diesel generators, paraffin lamps, gas stoves and coal or dung fires.

“We compare our solar lantern to the kerosene lantern,” Sunlite representative Sagar Mehta explained. “On a payback basis, you use an approximate of 30 to 40 cents of a US dollar of kerosene every day for a four-hour light. First of all, it is very harmful – smoke inhalation, illnesses, burns, all sorts of things, security issues.

“That will cost a family one third or half of its income on a daily basis. If we can change this around where if we can make a solar lantern, where the sun is free, that can pay back in three months and you start earning rather than paying, (they are) making a living.”

Solar-powered devices have many advantages. They can power up their batteries during the day while sitting in the sunshine and then be a source of light and electricity at night. This free energy source reduces the cost of running lights at night and means people can do a wide range of activities, from reading and studying to running a business or socializing. Some have even used Sunlite lanterns as landing lights for aircraft runways in Africa.

Sunlite lanterns are currently being distributed to people in disaster situations and also in refugee camps and displaced persons communities.

“The lamp was developed as a basic light for refugees who don’t have anything and have been displaced from homes,” said Mehta. “We supply in excess of 50,000 lamps every year to aid agencies, in particular the (UN’s) refugee agency.”

In order to keep tight control on quality and be able to have an inventory of lanterns ready to go on a moment’s notice, the company has invested in and set up its own in-house manufacturing facilities in India.

Sunlite Solar sees itself as a social enterprise. It is not focused on quick profits, and developing the lantern has taken time.

“It requires a huge amount of investment and time,” said Thakkar. “We spent two years without selling a single piece. What we did was our R&D and went out in the field, some of the most dangerous places – Rwanda, Uganda – actually training people to use it and getting the awareness.

“When you work with the UN, when you work through other government channels, it is just a long process which you have to be willing to go through.”

By David South, Development Challenges, South-South Solutions

Published: December 2012

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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All-in-One Solar Kiosk Business Solution for Africa

 

Kiosks are ubiquitous throughout commercial areas in the global South. These highly efficient little business outlets enable small-scale entrepreneurs to sell necessary products without the expense of renting and running a shop.

While they are a great solution for entrepreneurs and customers alike, they often lack connection to municipal services such as electricity and water. That means kiosk owners need to use batteries or a generator if they need a refrigerator to cool food and drink – an expensive proposition.

A new product launched this year in Addis Ababa, Ethiopia offers a solution.

Created by a team of German architects, the Solarkiosk (solarkiosk.eu) is an autonomous business unit designed for remote, off-grid areas. With solar panels across the top of the kiosk, it generates its own electricity and is basically a mini solar power plant. Inside, it is just like a conventional kiosk, with display shelves for products and a counter in the front with a flap – which can feature advertising and messages – that can be opened up for business and locked shut when the kiosk is closed.

The kiosk captures solar energy and the electricity generated can be used to run a computer, lights or a refrigerator. That makes the Solarkiosk capable of offering a wide range of services needing electricity, from Internet access to car-battery charging and mobile phone recharging – a now essential service as mobile phone use explodes across Africa.

The first kiosk was prototyped in November 2011 and the makers incorporated their first subsidiary, Solarkiosk Solutions PLC, in Addis Ababa, Ethiopia in March 2012.

According to Solarkiosk 1.5 billion people worldwide have no regular supply of electricity – 800 million of them in Africa. The makers of Solarkiosk consider this a huge market and hope to make the most of it.

The kiosk comes in a kit form ready for assembly. The kit is designed to be easy to transport and is light enough and compact enough to be transported on the back of a donkey, its makers claim.

Solarkiosk operators receive training in running and managing a kiosk. They learn about solar technology and how to maintain the kiosks and run a sustainable business. Once the operators are trained and up and running, they typically hire others to help with running the kiosk and offer the services at convenient times for the customers. The Solarkiosk then, potentially, becomes an income and employment generator for the local community.

The kiosk is designed to be durable, secure and difficult to tamper with from the outside. The kiosks have been designed to suit many environments and requirements. There is a basic platform that can be added to or expanded depending on local needs and a series of models depending on the customer’s needs. Cleverly, the largest kiosk model is powerful enough to provide electricity to telecom towers. This has proven attractive to mobile telephone companies who can power a telecom tower and make money from running the kiosk as well.

The Solarkiosk is especially useful for countries near the equator where nights are long (12 hours) and the kiosk can help people get light to read, study and work.

Solarkiosk is targeting off-grid customers who are using up to 40 per cent of their household income on electricity substitutes. According to Solarkiosk, people in off-grid households collectively spend more every year (US $30 billion) lighting their homes – using candles for example – than do all the people living in electricity grid connected countries (US $20 billion).

Solar technology is becoming more affordable at the same time as demand in developing countries for electricity and the products powered by electricity is on the rise. Mobile phones are now essential tools for doing business and staying connected – and all of them need to be kept charged up.

Solarkiosk believes it can save the average off-grid household US $10 per month, while each kiosk could supply solar electricity services to between 200 and 5,000 households.

For now, Solarkiosk is available in Ethiopia. It is based in Berlin, Germany and receives money from the German government. The kiosks themselves were designed and built by Graft Architects (http://www.graftlab.com).

By David South, Development Challenges, South-South Solutions

Published: November 2012

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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