Venture Capital Surge in Africa to Help Businesses

Africa’s potential economic powerhouse lies in its small and medium enterprises (SMEs). Foreign direct investment (FDI) into Africa ebbs and flows based on the state of the global economy – and most of it is directed towards large enterprises and multinational companies.

Finding ways to support grassroots SMEs has the potential to truly build in sustainable prosperity for the continent and construct stable middle class jobs.

But building a continent-wide network of investors, and directing that investment at the grassroots business entrepreneurs who employ the majority of Africans, is not easy.

Foreign direct investment to Africa rose fivefold from 2000, peaking at US $72 billion in 2008 (African Economic Outlook). A surge in raw material prices fed this boom. FDI is, however, unevenly distributed and much of it goes to extractive industries like mining and oil and gas in a handful of countries. When the global economic crisis hit, FDI inflows to African countries fell by 20 per cent, to US $59 billion in 2009.

Venture Capital for Africa: Connecting Entrepreneurs and Investors (http://vc4africa.biz), is a free service trying to nurture the SME sector and help entrepreneurs overcome the challenges of funding start-ups in Africa. Members are expected to contribute, collaborate and show their seriousness, bringing resources or their ideas and enthusiasm.

It has a detailed website with a mix of resources available. People can register and connect with others, check out venture ideas and the most popular ones in the past day to month, read about featured entrepreneurs, register as an investor looking for investees, and meet-up with others in their city. This includes expatriate communities in places like Oslo, Norway.

VC4Africa believes its mission is to champion entrepreneurship, and particularly SMEs, as the main driver of Africa’s economic growth. These businesses provide the majority of the continent’s employment and income. And as it says on its website, they offer “hope for a better future.” It is estimated SMEs contribute two thirds of national income for many African countries and are a major source of middle class jobs.

VC4Africa believes “that the most meaningful impact will still come from grass roots level i.e. entrepreneurs bold enough to start potentially great companies. It aims to connect these individuals with the additional network,knowledge and capital they need to realize their potential.”

VC4Africa started from a group on the social media and connecting platform Linkedin in 2008. It claims to be the largest online community “dedicated to entrepreneurs and investors building companies on the continent.” It is a free service and was founded by “serial entrepreneurs” Bill Zimmerman, formerly of Microsoft in the USA, and Ben White, founding member of AfriLabs (afrilabs.com), a network of technology incubators. Both have extensive experience founding and investing in technology initiatives in Africa.

VC4Africa is sponsored by a long list of well-known names in supporting African entrepreneurs: Acumen Fund (acumenfund.org), Afribiz (afribiz.info), AfricaNews.com, How We Made It In Africa.com, iHub Nairobi (ihub.co.ke), and others.

Consulting firm McKinsey (mckinsey.com) believes Africa’s more than 1 billion citizens should be seen as consumers and says the continent’s growing number of middle-income consumers now outstrips India’s. It boldly claims consumer spending will reach US $1.4 trillion in Africa by 2020, up from US $860 billion in 2008. Ventures that target these consumers could do very well indeed.

The future is looking good for the venture capital model if VC4Africa continues with its successes. Two of VC4Africa’s ventures – BongoLive and Njorku – were hailed by Forbes Africa magazine in February 2012 as top start-ups in Africa.

Founded in 2010, BongoLive is a mobile and SMS services company in Tanzania. Njorku, founded in 2011, is a Cameroonian career and recruitment services platform focused on Africa.

A long and impressive list of African ventures is being supported by the VC4Africa network. Not all will succeed, and they are in very different stages of development, from embryonic to established. The failure rate for start-ups anywhere is always high. But this doesn’t have to be a bad thing. What tends to happen from experience in other countries is this: a buzz is generated as like-minded people gather around a tech scene. They feed off each others’ideas and when one idea dies, it is often feasted on – like a lion on a wildebeest – and becomes the meal for another start-up. Or, the idea is taken on board by a more established outfit.

The dynamic around tech start-ups can seem strange to more traditional business cultures. Tech start-ups tend to be more forgiving of failure and more willing to see all their labour as part of a bigger thing. It is accepted that some ideas will fly, and others will die. It is not a culture heavily laden with the shame that can be associated with more traditional business failures.

Some of the ventures supported by VC4Africa include:

MXit – Founded in 2003, MXit was one of the first Mobile Instant messaging services in the world and in Africa, and has a user base of about 45 million. (South Africa)

Dropifi – Founded in 2011, Dropifi helps businesses better respond to incoming messages via their websites, and also includes analytics for website owners. (Ghana)

FloCash – Founded in 2010, FloCash allows anyone with an email address and mobile number to send and receive money across Africa simply and easily. (UK)

Bandeka – Founded in 2011, Bandeka is an exclusive social network for building relationships/dating. (Ghana and Nigeria)

Motribe – Founded in 2011, Motribe is a mobile platform enabling users, brands, agencies and publishers across the world to build and manage their own mobile social communities. (South Africa)

Hummba – Founded in 2011, Hummba is a social and travel networking website that lets users download free audio travel guides and share travel experiences directly from mobile phones.

10Layer – Founded in 2011, 10Layer is a CMS (content management) system targeted specifically at newsrooms. (South Africa)

By David South, Development Challenges, South-South Solutions

Published: February 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.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=5xafMNIQpBcC&dq=development+challenges+february+2012&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsfebruary2012issue

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

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Business Leads on Tackling Violence in Mexican City

The damaging affects of crime and violence can ruin a city. They act as a drag on efforts to increase wealth and improve living conditions, and a city that gets a bad reputation, especially in the age of the Internet, will lose investment opportunities.

The North American nation of Mexico has been struggling against drug and gang-related violence that has left an estimated 47,000 people dead over the past five years. It is a casualty rate worthy of a war.

In Monterrey, the capital of Nuevo Leon state (http://en.wikipedia.org/wiki/Nuevo_Le%C3%B3n), an innovative initiative has brought together local businesses to tackle the root causes of violence and crime. The initiative – called Red SumaRSE, which means ‘joining a network’ – was born from anger and disgust at the situation in the city. And it was ignited by a prominent member of the business community expressing this frustration on the social media outlet Twitter (twitter.com).

The chief executive of the Cemex cement company had had enough one day. Lorenzo Zambrano tweeted a blunt message to other companies in the city: “He who leaves Monterrey is a coward.” It was to be a rallying cry for the campaign to take back the city from the violent gangs.

Monterrey is embroiled in violent drug-related gang crime. Just one incident shows how bad the situation had become. In August 2011 members of the Zetas drug gang torched a casino over a dispute over non-payment of extortion money, killing 52 people.

Law enforcement measures can often only go so far to curb violence in a community. Little impact can be made without addressing the underlying economic causes of much of the violence – poor employment opportunities, drug turf wars between rival gangs, economic instability and more.

“Violence is an expression of social inequality,” Zambrano told The New York Times.

Tragedies like the casino fire provoked the city’s business community to take action. Private companies in the city have stepped up to design and fund a recruitment campaign for the police force and are paying part of the cost for government-backed community redevelopment plans.

Corporate philanthropy in Mexico has a history of being very limited. Apart from distribution of gifts at holiday time,there was little else. But this is changing, with Red SumaRSE showing the way.

“In the last five or 10 years there has been progress both in terms of the quantity of the money and the quality,” Michael Layton, director of the Philanthropy and Civil Society Project at the Autonomous Technological Institute of Mexico, told The New York Times. “But I don’t think Mexico has caught up to Brazil and other countries where the business sector has taken corporate philanthropy to heart.”

The Red SumaRSE alliance of Monterrey’s companies is directing support to non-governmental organizations working on community development. Examples include telephone company Axtel and the tortilla maker Gruma (gruma.com/vEsp) taking charge of 20 other companies to invest in schools, building up infrastructure and reversing drop-out rates.

The Oxxo company (oxxo.com/index.php), Mexico and Latin America’s largest chain store, has started to work at improving conditions in the neighbourhood immediately behind its headquarters. The company is working on building parks, increasing job opportunities and finding ways to prevent teenagers from joining gangs in the first place.

Cemex has also opened a new community centre in a violent neighbourhood where shootings were a regular occurrence. It was based on some Latin American knowledge sharing: inspired by the case of the Colombian city of Medellin, where libraries were strategically located in violent slum areas.

And there is more good work in the pipeline. The business community has drawn up a list of 70 neighbourhoods in the city needing re-development.

Red SumaRSE has not been without its critics. They have attacked the focus on security, education and victims while ignoring corruption, which many believe is the source of many of the city’s problems.

By David South, Development Challenges, South-South Solutions

Published: February 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.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=5xafMNIQpBcC&dq=development+challenges+february+2012&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsfebruary2012issue

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

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Designed in China to Rival ‘Made in China’

 

Harnessing the power of design to improve products and the way they are manufactured is a critical component of successful economic development. And the high export value of designing and making “computer equipment, office equipment, telecommunication equipment, electric circuit equipment, and valves and transistors” was flagged up as a priority for developing nations back in 2005 at a meeting looking for “New and Dynamic Sectors of World Trade” (UNCTAD).

One country taking up this challenge is China. It now boasts twice as many Internet users as the United States, and is the main global maker of computers and consumer electronics, from toys to games consoles to digital everything.

China is also on course to become the world’s largest market for Internet commerce and computing.

The centre of gravity is very much moving China’s way: One study of 769 firms investing in 2,203 Chinese companies by Stanford University in California, found “the same firms that were successful in Silicon Valley … have transplanted their expertise to China,” according to Marguerite Gong Hancock in The New York Times.

But the country wants to move from ‘Made in China’ to ‘Designed in China’. This is critical because the majority of the profits to be made are actually in the designing, patenting and marketing of products. Manufacturing, as has been shown in the recent media controversy over the products made by Apple (apple.com), is not the main profit centre.

Apple employs 43,000 people in the United States and 20,000 overseas. But through its network of sub-contractors,the number employed overseas in Asia, Europe and elsewhere is around 700,000 (The New York Times). This includes around 200,000 assembly jobs in China. These workers can make US $17 a day or less.

Apple makes hundreds of dollars in profit for each of its iPhones. Apple can do this because it is the designer of the phones and holds the copyright, and it is the branded company that has built up its reputation and developed a highly sophisticated marketing and distribution network around the world. Through clever use of design, Apple created products that look distinctive in the marketplace. And those are the factors that determine the ability to make this profit. As has been noted, it isn’t just cheap wages that keep Apple’s profits high.

Getting consumers to desire and buy your products is a challenge for any company. Design plays a major part in understanding the unique demands of countries and markets, and what people find appealing or repellent.

A product that has both a successful design and is produced efficiently will generate a good profit.

The classic example from the past is Japan. Devastated during World War II, Japan set about re-building its manufacturing prowess from scratch. It brought in American innovators to introduce new concepts in manufacturing.

Japan’s openness to the new ways enabled it to re-fashion its manufacturing industries to exporting to the developed Western nations, in particular the United States. At first, quality control was an issue and Japan was mocked for making cheap quality trinkets, toys, automobiles and motorcycles. But it quickly changed from this to a reputation for making quality, affordable products and moving quickly into the burgeoning micro-electronics and consumer products markets. It also was a pioneer in computer gaming and entertainment.

The recent achievements in supercomputing in China are pointing to where things can go. China has developed the Sunway Bluelight MPP supercomputer (http://en.wikipedia.org/wiki/ShenWei). It is able to do a quadrillion calculations per second: making the Sunway Bluelight one of the 20 fastest supercomputers in the world. It was built with a Chinese-made microprocessor, and importantly, uses lower amounts of power than other supercomputers.

The clever bit is the ratio of computing power to wattage used. Energy-efficient computing is critical if computers are to make the jump to the next level in processing power.

All these trends coming together hint at big changes in the coming years.

In the past two decades, the electronics sector has enabled a number of developing countries to improve trade performance, in particular East and Southeast Asian nations.

Improving education is critical to the growth strategy. Improving education, like encouraging the pursuit of engineering as a profession, as China has done – it now has more than half a million estimated graduates, the most in the world – means new skills and ideas are coming to the industry (engineeringinchina.net).

But this is not enough. New ideas are essentially a creative process and this needs connections to business and the ability to experiment and play with ideas. Start-up incubators have proven a successful way to do this.

Thailand is a good example: Around US $4.5 billion was invested in the country’s electronics industry between 1986 and 2001. This created 300,000 jobs. The sector became so important it made up a third of the country’s exports.

Realizing that much of the work was assembly manufacturing, the government set up the Thailand IC Design Incubator (http://www.nectec.or.th/rd/electronics/be204-45/be204-45.php) to work on hard disk drive development and move up the value chain.

“In 1978, I saw workers stringing together computer memories with sewing needles,” Patrick J. McGovern explained to The New York Times. McGovern is the founder of the International Data Group, which invests in Chinese enterprises.

“Now innovation is accelerating, and in the future, patents on smartphones and tablets will be originated by the Chinese people.”

In the past, China was not able to make significant progress on this development for two main reasons. The first is copyright piracy and theft of intellectual property rights. During China’s economic rise, this theft was rampant and the country developed a reputation for being home to a vast marketplace of knock-offs of major Western brands. And the second reason was the heavy hand of the government, which scared off many entrepreneurs.

But China is re-structuring its industries to focus on innovation. In 2011, China surpassed South Korea and Europe in total patents and was in a neck and neck race with Japan and the United States. As fuel for the innovation rocket,venture capital is critical. And China is now the world’s second largest venture capital market, with the total jumping from US $2.2 billion in 2005 to US $7.6 billion in 2011.

It is this journey up the manufacturing ‘value chain’ that many countries look to with admiration and jealousy. And the secret to being able to move up this value chain is design – savvy product design combined with savvy design of manufacturing methods to continually drive down costs and drive up quality. How long until China has its own Apple and not just an Apple knock-off (http://www.bbc.co.uk/news/technology-14503724)?

By David South, Development Challenges, South-South Solutions

Published: February 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.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=5xafMNIQpBcC&dq=development+challenges+february+2012&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsfebruary2012issue

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

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Microwork Pioneer Transforms Prospects for Poor, Vulnerable

A pioneering technology social enterprise has found a way to connect people around the world to the new digital economy, transforming their lives and providing long-term employment opportunities. It is closing the digital divide in a very practical way, teaching new skills and, most importantly, providing income to the poor and vulnerable.

The San Francisco, USA-based non-profit social enterprise Samasource (samasource.org) uses what it calls microwork – a virtual assembly line of small tasks broken down from a larger project so they can be completed over the Internet – to outsource work to its network of workers around the world.

The tasks in this virtual piecework range from writing to transcribing to organizing online content.

The company organizes the projects using its own online work distribution system connecting workers around the world to the SamaHub in San Francisco. Most of the workers are women, youth and refugees. When they complete their task, it is sent back to the SamaHub in San Francisco where the staff check it and assure its quality. Once approved and completed, the project is returned to the client.

The company was founded in 2008 and draws on experts in “distributed work, economic development, and outsourcing.”

The microwork is divided into three areas: content services, data enrichment and transcription.

Content services can include writing descriptions for online business listings, organizing large databases on information or creating brief descriptions of existing content to make it easier for search engines to find it. “Data enrichment” tackles the vast quantity of information on the Internet that needs to be kept up to date and reliable. It also includes ‘tagging’, where text or images on the Internet need to have appropriate ‘tags’ or labels. And finally, transcription services include digitizing paper documents like receipts or books or transcribing audio and video files for the web.

All these tasks are labour intensive and require high attention to detail. And they are critical to any online business’s success if it wants a reputation for accuracy and consistency.

Samasource is optimistic about its future potential because of the sheer size of the market for business process outsourcing: estimated to be worth over US $100 billion. What Samasource does, called ‘impact sourcing’ – outsourcing to people in the developing world living in poor or remote communities – is a market worth US $5 billion, according to Samasource’s website.

It differs from conventional business process outsourcing in a number of respects, including the educational background of the workers. Most conventional outsourcing goes to college graduates in cities in India, China and the Philippines. Impact outsourcing is done by people with at most a high school education.

The digital economy needs these workers to handle the many millions of detailed tasks required to link together information. It is easy to take this for granted because it is hidden from view, but it is what enables the Internet to function and businesses to thrive. Samasource provides outsourcing services including content moderation and data entry to clients like LinkedIn, Intuit and the US State Department.

“We bring dignified, computer-based work to women, youth, and refugees living in poverty,” said Samasource’s founder and chief executive officer, Leila Janah.

Janah has a background in development studies and formerly worked for the World Bank. This experience convinced her that much foreign aid was failing to target what poor people are really looking for: a job that pays well.

Samasource sees what it does as work, and not handouts.

It also believes it is changing perspectives, proving people from the poorest places on earth can become trustworthy, hard-working knowledge workers.

The Internet is a unique medium because it transcends borders and smooths contact between people with varying linguistic, cultural and educational capabilities.

“The Internet reduces the friction of collaboration across all of these centres and time zones, and with a highly distributed workforce,” said Janah.

Samasource claims to have paid out US $1 million in wages to more than 1,500 workers around the world. Ambitiously, it wants to expand this to reach some of the 144 million youth between 16 and 24 living on less than US $2 a day.

Youth are a particular focus for Samasource. Samasource targets young people who are literate and have received an education but still can’t get a job.

As for the many women employed by Samasource, they were either unemployed or earning poverty-level wages doing precarious work in low-level manufacturing and not building their skills.

Samasource currently has 16 partnerships in Haiti, India, Pakistan, Kenya, Uganda and South Africa. Criteria to work with Samasource includes being in a high-poverty region. Another criteria is for most of the money earned to stay within the region where the work is done and adhere to the standards laid down by Samasource.

Samasource’s success means it has attracted further funding. In December 2011, it was given a US $1.5 million grant from Google.org – the Google.com search engine’s charity. It has also raised US $5 million from non-profit investors, including the Ford Foundation, the Rockefeller Foundation and the eBay Foundation. The challenge for the Samasource model will be to prove, with this new funding, that it can scale its operations to pay out more to its workers than it is taking in to meet its operating costs.

Microwork is turning out to be big work indeed!

By David South, Development Challenges, South-South Solutions

Published: January 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.  

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=qLYTxcC8HgcC&dq=development+challenges+january+2012&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsjanuary2012issue

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

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Building an Interactive Radio Network for Farmers in Nigeria

 

As solar power technology has improved, new pioneers have emerged to exploit this innovation. Several decades ago, solar power was seen as too expensive for wide-scale roll out in poor countries and communities. But today, an army of solar technology pioneers has fanned out across the world to show the new wave of innovations and how they make solar power affordable.

More than 1.7 billion people around the world have no domestic electricity supply, of whom more than 500 million live in sub-Saharan Africa (World Bank). Without access to domestic electricity, these people need to fall back on expensive, battery-powered devices or use gas generators and lamps: a cost that eats into their income. 

More than 90 percent of Nigeria’s estimated 155 million people (US Census Bureau) live on just US $2 a day. Many of them are small farmers in remote areas. Access to information is very poor, especially critical information that can improve farming methods and boost incomes.

One of the most effective ways to communicate to a large number of people over a large territory is through radio.

A clever use of solar-powered battery radios has enabled the building of a low-cost, two-way communications network for rural farmers. The Smallholders Farmers Rural Radio (http://smallholdersfoundation.org) network broadcasts to 250,000 listeners with 10 hours of daily programming. The communications network reaches 3.5 million farmers in around 5,000 villages in Imo State (www.imostate.gov.ng), southeast Nigeria. The programming tackles issues from sustainable farming practices to HIV/AIDS and how to open a bank account . The clever part is the two-way dialogue between the listeners and the radio station. This is done through mobile radios known as AIR devices. They are small, solar-powered radios that let listeners send voice messages to the radio station. The message is stored on the radio station’s computers and later broadcast during a programme, allowing farmers to share their experiences, ask questions and receive answers in their own language.

The slim, hand-held silver-coloured radios have a small antenna and dials.

The network was created by Nnaemeka Ikegwuonu, who won a 2010 Rolex Laureate award (http://young.rolexawards.com/laureates/nnaemeka_ikegwuonu). The awards seek to foster innovation in the next generation. Launched in 2009, it looks for “visionary young men and women at a critical juncture in their careers, enabling them to implement inventive ideas that tackle the world’s most pressing issues in five areas: science and health, applied technology, exploration, the environment and cultural preservation.” 

Ikegwuonu hopes to bring the service to other parts of Nigeria.

His radio studio is the height of simplicity and sophistication: a laptop computer, a microphone, a headset and a small control board to manage the sound levels. The radio signal is broadcast through a 30-metre-high antenna. 

Solar power is being creatively used in many countries to tackle energy poverty. This ranges from lamps and lights to cookers to small power packs for electronic devices, all the way to large hardware to power homes and communities.

InIndia, whole villages are already using solar energy and improving their standard of living. Various companies and projects are selling inexpensive solar appliances – from cooking stoves to lanterns and power generators – across the country.

A report by the International Finance Corporation called the sub-Saharan solar market the largest in the world – a market of 65 million potential customers, who could access off-grid lighting over the next five years (IFC). The report anticipated high growth rates of 40 to 50 percent for anyone entering the market, with less than one percent of the market currently being served.

With a billion Africans using just four percent of the world’s electricity (The Economist), energy poverty is already harming further economic growth and development gains. As Africa’s population is expected to double to 2 billion by 2050, the gap between people’s needs and the power available will be stark: in Nigeria, out of 79 power stations, only 17 are working (The Economist). It will take innovators like Ikegwuonu to bring hope to this situation and transform lives despite the obstacles.

By David South, Development Challenges, South-South Solutions

Published: December 2011

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=Ps0RezX0QbAC&dq=development+challenges+december+2011&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsdecember2011issue

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

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.