Popular Chinese Social Media Chase New Markets

China has a vast and growing market for the Internet and mobile devices. Over the past decade that market has been largely confined to China –  most businesses have had enough domestic demand and opportunities inside the country to keep them busy.

But now companies in China’s dynamic Internet and mobile sector are seeking out new markets outside the country. Both online shopping service Alibaba (alibaba.com) and Weibo (weibo.com), the Chinese version of Twitter (twitter.com), are seeking to list on the New York Stock Exchange. The excitement this news has generated shows how many people want to get a piece of the large Chinese market for technology, social networks and online shopping. It is also sending a chill through America’s Silicon Valley – home to the country’s innovative high technology sector – that they are missing out on China’s fast-growing marketplace. Many American services are banned from operating in China. Even more worrying for Silicon Valley, these home-grown Chinese companies, with the market sewn up at home, are now set to compete globally for customers using their increasingly deep pockets.

One example is Tencent (http://www.tencent.com/en-us/index.shtml), owner of popular Chinese social messaging application (app) Weixin (weixin.qq.com), known as WeChat (wechat.com) outside China. Used on mobile phones and smartphones, Weixin has gained 300 million users in just three years, becoming the dominant social messaging service in the world’s largest smartphone market. Its has been so successful that many rivals are trying to chip away at its customer base.

Weixin, pronounced way-shin, allows smartphone users to send messages and share news, photos, videos and web links with friends. One of its selling points is its claim to not store messages on its servers.

Building on its success in social networking in China, it is looking to expand in other markets, including Southeast Asia, Europe and Latin America. It also wants to grow its offerings in online payment and e-commerce.

One factor in Weixin’s success is the ability to send messages by recording a voice message rather than just typing in characters: very useful for non-Latin script users, and especially for Chinese-language users, who use thousands of characters in everyday communication.

One ambitious forecast claims Weixin could reach 400 million users and make US $500 million revenue within a year.

Cosmetics marketer Jenny Zhao, who uses an iPhone 5, told The New York Times: “I’m probably on Weixin six hours a day. A lot of what I do revolves around it.”

“I use Weixin every day,” said Zhang Shoufeng, a food and drinks seller. “My friends are on it and my boss is on it. We are talking about where to eat, where to hang out and where to meet for company conferences. This is how we communicate.”

Analysts believe Weixin has benefitted from not having to compete with banned-in-China American company Facebook (facebook.com).

“Even if Facebook had permission, it’s probably too late,” said Wang Xiaofeng, an analyst at Forrester Research. “Weixin has all the functionality of Facebook and Twitter, and Chinese have already gotten used to it.”

Tencent is an example of a wider trend: As Chinese companies and offerings have become stronger, wealthier and more innovative, they increasingly look to build their customer base outside China.

Founded in November, 1998, Tencent, Inc. has grown into China’s largest and most used Internet service portal. Its most popular services include QQ (QQ Instant Messenger), WeChat, QQ.com, QQ Games, Qzone, 3g.QQ.com, SoSo, PaiPai and Tenpay, as well as Weixin.

The company claims to put innovation at the heart of its business, with more than half of its employees devoted to research and development. The Tencent Research Institute, established in 2007 with RMB 100 million (US $16 million), calls itself “China’s first Internet research institute, with campuses in Beijing, Shanghai, and Shenzhen.” It has patents for technologies it has developed for instant messaging, e-commerce, online payment services, search, information security, and gaming.

Tencent was driven to innovate by a fear it could quickly become irrelevant in the information technology space. Weixin is also pioneering ways to book taxis, hotels and airline flights through the service and even ways to control home appliances.

“Chinese Internet companies are no longer behind,” said William Bao Bean, a managing director at the venture capital firm SingTel Innov8 (http://innov8.singtel.com/). “Now in some areas, they’re leading the way.”

By David South, Development Challenges, South-South Solutions

Published: April 2014

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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Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

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India 2.0: Can the Country Make the Move to the Next Level?

With the global economic crisis threatening to cause turmoil in the emerging markets of the global South, it is becoming clear that what worked for the past two decades may not work for the next two.

For India, the legacy issues of poverty still need to be addressed, and the country’s impressive information technology (IT) industry – which has driven so much of India’s growth – will face stiff competition from other countries in the global South. Some argue that if the IT industry hopes to keep growing and contributing to India’s wealth, things will need to change.

Unlike China, where heavy investment in infrastructure and a strong link between government and the private sector has driven the impressive manufacturing boom in the country, in India the government has de-regulated and taken a back seat, leaving the private sector and entrepreneurs to drive the change and do the innovation.

Many believe various areas need urgent attention if India is to continue to enjoy good growth rates in the coming years. Areas in need of attention include infrastructure, healthcare and education (thesmartceo.in), in particular the knowledge to work in the information technology industry of the 21st century.

One of the founders of Indian outsourcing success Infosys (infosys.com), executive co-chairman Senapathy Gopalakrishnan, told Britain’s Telegraph newspaper, “So many people’s lives have been changed by IT in India.

“People from the middle class and lower middle class have become global employees and have the opportunity to work with some of the best companies in the world. But the challenge for India is that this industry can only create so many jobs. IT is not going to solve the unemployment problem in India.”

But the coming next wave of change in information technology is an opportunity to be seized to reduce unemployment if enough people are educated to handle it.

According to Gopalakrishnan: “I strongly believe, and it’s backed up by data, that there is a shortage of computer professionals everywhere in the world, including India. The application of computers is growing dramatically and will continue to grow dramatically over the next 20 to 30 years. We have to train and create the workforce necessary to grow this industry.”

Various media stories have called this next phase India 2.0. If India 1.0 was the highly successful information technology outsourcing industry developed in the late 1980s, through the 1990s and 2000s, then India 2.0 is the next wave of IT innovation being driven by Big Data, automation, robotics, smart technologies and the so-called “Internet of things.”

Big Data is defined as the large amounts of digital data continually generated by the global population. The speed and frequency with which data is produced and collected – by an increasing number of sources – is responsible for today’s data deluge (UN Global Pulse). It is estimated that available digital data will increase by 40 per cent every year. Just think of all those mobile phones people have, constantly gathering data.

Processing this data and finding innovative ways to use it will create many of the new IT jobs of the future.

“We are living in a world which is boundary-less when it comes to information, and where there is nowhere to hide,” continues Gopalakrishnan, “If you have a cellphone, somebody can find out exactly where you are. Through social networks you’re sharing everything about yourself. You are leaving trails every single moment of your life. Theoretically, in the future you’ll only have to walk through the door at Infosys and we’ll know who you are and everything about you.”

Unlike in the late 1980s, when India was the pioneer in IT outsourcing for large multinational companies and governments, competition is fierce across the global South. The mobile-phone revolution and the spread of the Internet have exponentially increased the number of well-educated people in the global South who could potentially work in IT. China, the Philippines, Kenya, Nigeria and Ghana are just some of the countries heavily involved in this area.

If India fails to meet the India 2.0 challenge, it risks seeing its successful companies and entrepreneurs leaving to work their magic elsewhere in Asia and the new frontiers of Africa, just as many of its best and brightest of the recent past became pioneers and innovators in California’s Silicon Valley.

India’s IT sector contributed 1.2 per cent to the country’s gross domestic product (GDP) in 1998; by 2012, this was 7.5 per cent (Telegraph). The IT industry employs 2.5 million people in India, and a further 6.5 million people indirectly. IT makes up 20 per cent of India’s exports and, according to the National Association of Software and Services Companies (nasscom.in), the industry has revenue of US $100 billion.

India is now the IT and outsourcing hub for more than 120 of the Fortune 500 companies in the United States.

Out of India’s 3.5 million graduates every year, 500,000 are in engineering – a large pool of educated potential IT workers. India produces the world’s third largest group of engineers and scientists, and the second largest group of doctors.

IT has become a route that catapults bright Indian youth into 21st-century businesses and science parks and to the corporations of the world.

One visible example of the prosperity brought by IT services in India is the booming technology sector based in the city of Bangalore (also called Bengaluru) (http://en.wikipedia.org/wiki/Bangalore).

Reflective of the contradictions of India, Bangalore has 10 per cent of its workforce now working in IT, but also 20 per cent of its population living in urban slums.

The nearby Electronics City (elcia.in) is considered “India’s own silicon valley and home to some of the best known global companies.”

To date, aspects of India 2.0 are already taking shape.

One company is called Crayon Data (crayondata.com). It uses Big Data and analytics to help companies better understand their customers and increase sales and deliver more personal choices.
Edubridge (http://acumen.org/investment/edubridge/) is helping to bridge the gap for rural youth with varied education backgrounds and long-term jobs. Edubridge trains youth for the real needs of employers to increase the chances they will get a job. This includes jobs in the IT business process outsourcing sector and banking and financial services.

Infosys is working on innovations for the so-called “Internet of things,” in which smart technologies connect everyday items to the grid and allow for intelligent management of resources and energy use. Infosys is developing sophisticated software using something called semantic analytics – which analyses web content (http://en.wikipedia.org/wiki/Semantic_analytics) – to sort through social media and the Internet to track customer responses to products.

Elsewhere, former Infosys Chief Executive Nanden Nilekani is involved in a Big Data innovation to address the problem of social and economic exclusion of India’s poor. Called Aadhaar (http://uidai.gov.in/), the government-run scheme is gathering biometric data on every Indian to build the world’s largest biometric database. After being enrolled and having fingerprints and iris scans taken, each individual is given a 12-digit identification number. So far 340 million people have been registered with the scheme, and it is hoped 600 million will be registered by the end of 2014.

The idea is to use a combination of access to mobile phones and these unique ID numbers to widen access to all sorts of products and services to poor Indians, including bank accounts for the millions who do not have one. Many people, lacking any identity or official acknowledgment they exist, were prevented from engaging with the formal economy and formal institutions. Being able to save money is a crucial first step for getting out of poverty and it is hoped information technology will play an important role in achieving this.

By David South, Development Challenges, South-South Solutions

Published: March 2014

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

Google Books: https://books.google.co.uk/books?id=xIzkBgAAQBAJ&dq=development+challenges+Cheap+Farming+Kit+Hopes+to+Help+More+Become+Farmers&source=gbs_navlinks_s

Slideshare: https://www.slideshare.net/DavidSouth1/development-challenges-march-2014-published-44135069

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

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“Pocket-Friendly” Solution to Help Farmers Go Organic

Interest in organic food and farming is high, and organics have become a growing global industry. The worldwide market for organic food grew by more than 25 per cent between 2008 and 2011, to US $63 billion, according to pro-organic group the Soil Association. That is an impressive accomplishment given the backdrop of the global economic crisis, and evidence that people value quality food, even in tough times.

One Kenyan company is hoping to help farmers benefit from this global surge in interest in organic food. The company is selling a healthy alternative to chemical fertilizers and is hoping it will soon be able to source its products in Kenya, too.

BioDeposit (http://biodeposit.lv/index.php?page=elixir-3) sells soil conditioner and natural fertilizer made from two ingredients: peat found in marshlands and silt dredged up from lakes, which is called sapropel (http://en.wikipedia.org/wiki/Sapropel). This naturally occurring resource is rich in all the elements required for abundant crops and has the added benefit of not poisoning the soil and water table when used on farmer’s fields.

It is sold as a solution to the multiple pressures hitting farmers, from chaotic weather patterns to soil damage and decreasing yields. It offers a way to boost farm productivity without damaging the soil in the long term.

In 2011 the amount of farmland that was organic reached 37.2 million hectares in 162 countries – but this is still just 0.86 per cent of the world’s agricultural land (Research Institute of Organic Agriculture and International Federation of Organic Agriculture Movements). If BioDeposit has its way, Kenyan farmers could help to grow the number of hectares being farmed organically.

Presenting the solution in October 2013 at the Global South-South Development Expo (southsouthexpo.org) at the headquarters of the UN’s Environment Programme (UNEP) in Nairobi, Kenya, BioDeposit communications and media chief Nelly Makokha (http://ke.linkedin.com/pub/nelly-makokha/29/a08/634), explained that the company is hoping to bring the technology behind BioDeposit to Kenya, if they can get permission.

At present, the source materials for the products are dredged from lakes in Latvia in Eastern Europe. Because of the political structures of Kenya, it means a long political process is ahead to gain permission to dredge any of the country’s lakes. BioDeposit’s Latvian scientists conducted research on the potential for Lake Naivasha (http://en.wikipedia.org/wiki/Lake_Naivasha) in the Rift Valley and claim it has enough deposits to provide Kenya’s farmers with organic fertilizer for the next 200 years.

“If the government agrees, the fertilizer is basically cheaper than any other fertilizer the farmer [will] have ever used in a long time,” said Makokha. “It will be pocket-friendly for them. As they earn more money from the more yields, they are spending less on the fertilizer.

“Our slogan is ‘smart agriculture for health and wealth’  – health in terms of you become organically grown, and if you are looking for organic certification, we will organize that for the certifiers. Right now most countries are looking for organic food and cannot find it.

“So when you become organic that means you earn more money on your products so it means you are healthy and you are wealthy!”

The fertilizer comes in 12 milliliter packets that cost 200 Kenyan shillings (US $2.30). A farmer would need two packets for each quarter acre of farmland.

Based on a Russian discovery from the early 20th century, BioDeposit draws on naturally occurring resources.

Its products include BioDeposit Agro, described as a “biologically active soil conditioner,” and BioDeposit Elixir, described as a “humic plant growth stimulator.” The Elixir is a “sustainable, water-soluble” concentrate made from peat and can be used to soak seeds prior to planting, increasing the germination cycle. For the farmer, it means more seedlings in a shorter time. It also can be poured on compost piles to boost humic content to speed compost decay. Peat is formed from above-ground marsh plants, either on the surface or under a layer of water.

BioDeposit Agro is made from sapropel from the sediment at the bottom of freshwater lakes. It is a renewable, naturally-occurring resource as it has been formed from the accumulated settling of plants such as reeds, algae, trees, grasses and animals over time as they decay.

Unlike other chemical fertilizers, using the BioDeposit product does not require special protective clothing and does not harm human health. Children are also not at risk if they accidentally ingest the product.

“Most farmers have small farms – quarter acre, half acre, at most three acres,” said Makokha. “For a quarter acre you spend five dollars and you get more yields. Two of them would be approximately five dollars – that’s enough for a whole season – so it is pocket friendly.”

And if the company is able to harvest the material in Kenya, it would be even cheaper.

“You can imagine if we dredge here – probably (get the cost down to) a dollar – so it makes more sense for the farmers.”

The dredging has another positive impact: it helps with managing flooding by making the lake deeper once the silt is dredged out, making life better and safer for people living nearby.

BioDeposit has been operating in Kenya for a year and, Makokha said, “the response is awesome.”

BioDeposit organizes workshops for farmers through cooperative societies, helping to guide farmers through the whole process of becoming organically certified.

The company believes its products will help avert problems such as what happened recently when the European Union prevented some flowers – a major source of overseas income for Kenyan farmers – from entering the EU because of banned pesticides.

Cleverly, BioDeposit does most of its business digitally through mobile phones. It conducts its business with sales representatives by phone and conducts training by phone as well. All payments and bank transfers are done by phone using the M-PESA system (http://www.safaricom.co.ke/?id=257).

“It is the easiest way to do business in Kenya,” said Makokha. “Everybody right now owns a mobile phone. When we get the M-PESA, we transfer directly to the account. You get the money and transfer to the bank account and you are done, very easy for everybody … doing wonders for us.”

By David South, Development Challenges, South-South Solutions

Published: March 2014

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

Like this story? Here is a dirty secret: this website is packed with stories about global South innovators. We spent 7 years researching and documenting these stories around the world. We interviewed the innovators to learn from them and we visited them to see how they did it. Why not use the Search bar at the top and tap in a topic and see what stories come up? As for my work, I have been involved with start-ups and media ventures since the early 1990s. While most tech entrepreneurs were either still in their nappies in the 1990s (or just a drunken night away from being conceived in the 2000s), I was developing content for this new thing they called the "Internet". In the years since I have learned a great deal about innovation and digital and have shared these insights in the stories on this website as well as in the 5 issues of Southern Innovator magazine. So, stick around and read some more!    

Google Books: https://books.google.co.uk/books?id=xIzkBgAAQBAJ&dq=development+challenges+Cheap+Farming+Kit+Hopes+to+Help+More+Become+Farmers&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challenges-march-2014-published

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Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

The first five issues of Southern Innovator. The highly influential magazine was distributed around the world and each issue was launched at the annual Global South-South Development (GSSD) Expo hosted by the United Nations Office for South-South Cooperation (UNOSSC).

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Cheap Farming Kit Hopes to Help More Become Farmers

Food security is key to economic growth and human development. A secure and affordable food supply means people can meet their nutrition needs and direct their resources to improving other aspects of their lives, such as housing, clothing, health services or education.

One solution hopes to boost productivity for small-scale farmers and make agriculture a more attractive income source to the young and poor, by making it possible to grow food year-round. Kenyan social enterprise Amiran Kenya is selling the Amiran Foundation Kit (amirankenya.com), a simple-to-use greenhouse farming kit. As well as helping people grow both food and their agricultural business, Amiran Kenya hopes young people will also buy the kits at a discount and then sell them for a profit to others.

The technology to grow food year-round is already available, but it is generally expensive to set up. This cost is usually prohibitive to the poor and young: two groups who could really benefit from the income. And if young people in Africa learn the basics of farming, in time they could expand and develop into agribusinesses and benefit from the growing food demand on the continent.

Africa, a continent undergoing significant economic change, has yet to fully realize its potential as a producer of agricultural products to feed itself and the world. Africa currently has a labour-intensive but very inefficient agriculture system. While many Africans either make their living in agriculture or engage in subsistence farming for survival, much of Africa’s farming is inefficient and fails to make the most of the continent’s rich resources and potential.

At present, agriculture, farmers and agribusinesses make up almost 50 per cent of Africa’s economic activity, and the continent’s food system is worth an estimated US $313 billion a year (World Bank). A World Bank report, Growing Africa: Unlocking the Potential of Agribusiness (http://siteresources.worldbank.org/INTAFRICA/Resources/africa-agribusiness-report-2013.pdf), argues that Africa could have a trillion-dollar agriculture market by 2030.

While large-scale agribusinesses are increasing in Africa, it is still reliant on small-scale farmers to meet the daily food needs of most of the population.

“The time has come for making African agriculture and agribusiness a catalyst for ending poverty,” said Makhtar Diop, World Bank Vice President for Africa. The continent needs to “boost its high growth rates, create more jobs, significantly reduce poverty, and grow enough cheap, nutritious food to feed its families, export its surplus crops, while safeguarding the continent’s environment.”

Any country that has to import food will be vulnerable to currency fluctuations and the inflation in prices this can cause. A country that has many options for food, and reduces its dependency on imported food resources, will have greater resilience when crisis strikes.

Greenhouses are a great way to expand the growing season, avoiding ups and downs in temperature. But they can be expensive to set up – something the kit hopes to resolve. A typical greenhouse kit will cost a Kenyan an estimated 10 times more than the Amiran Foundation Kit, which retails at Sh 14,500 (US $168).

The package includes a drip-feed kit, a 250 liter water tank, a one liter sprayer, instructional growing guides, fertilizer, agro chemicals and high-quality seeds. Crops that can be grown include cabbage, watermelon, kale and spinach. The drip kit is highly durable and can last eight years, according to its manufacturer.

The kit is being marketed as a “kick starter for the small scale farmers who want to adopt agribusiness” as their method for growing food.

“The farmers will have a chance to start small and grow bit by bit until they are able to afford the modern greenhouses which will set the ball rolling for them to enjoy the benefits of modern agribusiness,” Yariv Kedar, Amiran Kenya’s Deputy Director, explains on the company’s website.

The plan is to draw more people into agriculture by showing they do not need to be prisoners of weather patterns. Larger agribusiness enterprises already have the resources to benefit from technology such as greenhouses and avoid the worst effects of the weather.

By transcending fickle weather patterns, it is possible to reduce the risk of crop failure and the resulting financial damage – one reason people shy away from farming.

Amiran’s philosophy behind the kit is simple: knowledge and know-how matched with high-quality inputs that do not harm the environment. The idea is to introduce people to the concept of agribusiness, no matter how small their land size. Amiran estimates that by investing Sh 14,500 (US $168), a person could make Sh 25,000 (US $290) per season – making back in a season the initial investment cost.

Urban farmers and home gardeners are among those who can benefit, along with small-scale farmers in arid and semi-arid areas of Kenya.

Kedar said the kit’s drip pipes, which deliver water directly to the root of the plant, ensure that “every drop counts” and save between 30 to 60 per cent of water compared to other methods of irrigation.

“Using the Amiran Foundation Kit, farmers are now able to grow all year round and experience high yields while still conserving the scarce resource, water,” he said.

By David South, Development Challenges, South-South Solutions

Published: March 2014

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

Like this story? Here is a dirty secret: this website is packed with stories about global South innovators. We spent 7 years researching and documenting these stories around the world. We interviewed the innovators to learn from them and we visited them to see how they did it. Why not use the Search bar at the top and tap in a topic and see what stories come up? As for my work, I have been involved with start-ups and media ventures since the early 1990s. While most tech entrepreneurs were either still in their nappies in the 1990s (or just a drunken night away from being conceived in the 2000s), I was developing content for this new thing they called the "Internet". In the years since I have learned a great deal about innovation and digital and have shared these insights in the stories on this website as well as in the 5 issues of Southern Innovator magazine. So, stick around and read some more!    

Google Books: https://books.google.co.uk/books?id=xIzkBgAAQBAJ&dq=development+challenges+Cheap+Farming+Kit+Hopes+to+Help+More+Become+Farmers&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challenges-march-2014-published

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

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Baker Cookstoves – Designing for the African Customer

An innovative social enterprise is using design to create an energy-efficient cookstove for Kenya. By turning to an experienced Swedish architecture and design firm, the people behind the Baker cookstove wanted to make sure the stove’s design was as efficient as possible and relevant to the customers’ needs, while also making sure it is visually appealing and something a person would proudly want in their home.

The Baker cookstove (bakerproduct.com) has been designed to be a high-quality and desirable product that also accomplishes the goal of saving money for the user. This unique product is being developed and made at the company’s factory in Nairobi, Kenya.

Baker’s owner is Top Third Ventures Global (topthirdventures.com), a social-impact company registered in Kenya and founded in 2011 by American Lucas Belenky and Björn Hammar, a Swedish/Finnish entrepreneur. Their goal is to make sure that everyone in the developing world has access to an affordable, high-quality efficient cookstove.

While cooking is a daily necessity for billions of people, it is also costly and polluting. By switching to energy-efficient cookstoves, families can reduce the cost of cooking daily meals and, if the stove is designed right, cut the amount of pollution generated. One of the great obstacles to the take-up of energy-efficient cookstoves to date has been the absence of sustainable business models to sell and distribute them.

The Baker cookstove, designed as an aspirational product and backed up with a seven-year guarantee, hopes to change this dynamic. If things go to plan, the company hopes to significantly scale up its production based on customers wanting to have a Baker cookstove proudly on display in their home.

The Baker cookstove is the product of a deliberate attempt to use design and a well-thought-out production life cycle to create an item that is eye-catching, effective, and manufactured consistently to a high standard.

Designed by Claesson Koivisto Rune (http://www.ckr.se/), a Swedish architecture and design firm, the Baker cookstove is a sleek, round, modern stove and comes in eye-catching colors such as orange. It could easily fit in with other kitchen products in a high-end design shop. And that is the point: they want people to want the Baker cookstove.

Quality is key, and engineering and design teams constantly monitor the product and make adjustments to the cookstove as they receive feedback from customers.

The Baker cookstove is benefiting from new financing being made available through carbon credits, which its founders believe will bring big changes to the energy-efficient cookstove market over the next 10 years.

Baker’s chief executive, Lucas Belenky, told Southern Innovator magazine – this newsletter’s sister publication – about the thinking behind the Baker cookstove.

SI: What role does design play in the Baker cookstove social enterprise? At what stage did Top Third Ventures start to think through the production life cycle for the Baker cookstove? What did you feel was missing in the other cookstove models currently available on the market?

The Baker cookstove is the cornerstone of the social enterprise. Top Third Ventures is at its core a product company. There are different aspects to the business model to make it work (i.e. carbon credits and big data) but everything depends on the success of the Baker product. We started thinking through the production life cycle from the day the company was founded in late 2011. The Baker is designed for usability, aspirational value, and performance, prioritized in that order. The most important thing is that the Baker is easy to use and does not require its users to change their daily routines or cooking habits. Cooking cultures vary greatly across the developing world so it is important to understand exactly who your customer is and focus on meeting their requirements. When you have a product that is easy to use it needs to be desirable as well. Beyond the service provided, the product should make the customer feel good about themselves. Finally, the Baker cooks the same food with half the fuel and much less smoke.

The priorities seem reversed for other cookstove models on the market. Efficiency comes first, then the aesthetic design, and cultural conformity is last. Hyper-efficient cookstoves are great for health and the environment on paper but the benefits are not realized because widespread adoption isn’t achieved. Most products are imposed through a top-down approach instead of starting with the customer and designing the stove around them.

SI: Why did you choose to have the Baker cookstove designed by Claesson Koivisto Rune, a Swedish architecture and design firm? What were some of the challenges encountered when designing the product and the production life cycle? What advice do you have for other social enterprises looking to offer an appealing product to low-income households?

We wanted the Baker cookstove to be an aspirational product that you use as much because of the performance (less fuel and less smoke) as because it is beautiful. Claesson Koivisto Rune believed in our vision at a very early stage and I doubt we could have gotten where we are today without them. Challenges around the design mainly involve keeping the costs down. Our customers do not have a lot of disposable income so balancing affordability with performance and world-class design is tough.

For other entrepreneurs selling to low-income households my advice is identify your customer, listen to them, and never stop listening. This is obvious to most businesses but for social enterprises sometimes the grant organizations or other dispersers of donor funding become the customer without you noticing.

Finally, often just because the consumer is in a developing country, enterprises neglect aesthetic appeal and branding. Do not do this. Your consumer behaves for the most part like their counterpart in the developed world. They want products that look nice and make them feel good.

SI: What role is information technology playing in the Baker cookstove’s development? How do mobile phones help with reaching customers in Africa? How does offering software products such as Top3Tracker help Baker cookstoves?

Information technology has a huge impact in decentralized areas because it enables cheap flow of information. For Top Third Ventures it allows us to track our sales in real-time, communicate with current and future customers instantly, and gain valuable insights about how to improve the sales pitch and marketing strategy. The Baker cookstoves also depends on carbon finance, which requires a dialogue with current customers to ensure the usage of the cookstove is accurately measured. Information technology such as our Top3 Tracker significantly reduces the cost of accessing carbon finance.

SI: It is said an innovator is somebody who disrupts existing products and ways of doing things. How is Top Third Ventures innovating and disrupting the current approach to energy-efficient cookstove distribution?

We hope to change the way products for low-income households are designed, marketed, and sold. Top Third Ventures’ Baker cookstove embodies our conviction that these products should be customer-centric, have aspirational value, and conform to local cultures. The success of our product will show that consumers in the developing world want the same thing as their counterparts in developed countries.

Top Third is a partner of the Global Alliance for Clean Cookstoves (cleancookstoves.org).

Lucas Belenky from Top Third Ventures Global.

The Baker cookstove by Claeson Koivisto Rune.

By David South, Development Challenges, South-South Solutions

Published: December 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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Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

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