Texting for Cheaper Marketplace Food with SokoText

An international group of graduate-social entrepreneurs from the London School of Economics (LSE) is pioneering a way to reduce food prices in Kenya using mobile phones.

Answering a call to action to address global food insecurity by the Hult Prize (hultprize.org), the team members looked at how they could make food cheaper for urban slum dwellers.

The Hult Prize, funded by Swedish educational entrepreneur and billionaire, Bertil Hult, is a start-up accelerator for budding young social entrepreneurs emerging from the world’s universities. The winner receives US $1 million and mentorship to make their idea become real.

SokoText (sokotext.com) (soko means market in Swahili) uses SMS (short message service) messages from mobile phones to empower vegetable sellers and kiosk owners in slums when it comes to bargaining the price for wholesale fresh produce. SokoText makes it possible for them to benefit from bulk prices by pooling their orders together every day. Usually vendors lack the funds to buy in bulk and have to make numerous time-consuming trips to the centre of Nairobi to buy stock.

SokoText reduces the price of fresh produce by 20 per cent for kiosk owners by buying the produce earlier in the supply chain. SokoText then delivers the food to a wholesale outlet at the entrance to the slum.

This approach makes available a wider range of produce and reduces the price. And best of all, it will knock down prices for the poorest people and enable them to buy more food and better quality food.

The team behind SokoText come from a variety of countries – Colombia, Canada, Kenya, Britain and Germany.

Hatched at the LSE, the enterprise prototyped its service in Mathare Valley, Nairobi, Kenya for four weeks during the summer of 2013 with 27 users and began the second phase of testing in November 2013, working with a local NGO, Community Transformers (https://www.facebook.com/pages/Community-Transformers-kenya/119937408165671).

According to SokoText, slum dwellers spend on average 60 per cent of their daily budget on food.

Mobile phones can be transformative since they are now a common communications tool, even in slums.

On the SokoText website, respected blogger and commentator on technology in Africa, Erik Hersman (http://whiteafrican.com/about/), calls it “a fantastic low-tech approach that could really scale for decreasing the inefficiencies in urban slum markets.”

SokoText’s 21-year-old co-founder and chief executive, Suraj Gudka, explained the genesis of the project to news and technology in Africa website, 140Friday.com.

“From our research, the Mama Mboga (small-scale vegetable retailers) spend between 150 and 200 Kenyan shillings (US $1.70 and US $2.3) daily, about 25 per cent of her revenue, to buy her stock, and since they do not buy in bulk they [she] get their goods at a higher price.”

Getting the market traders to cooperate is very difficult, Gudka found, because competition is fierce and trust is low. SokoText sees itself as a solution to this situation. By encouraging bulk buying by way of the SMS text service, there is no need to build trust between the traders before the produce is purchased.

“To use our service, the interested retailers would be required to send us an SMS every evening detailing what they need,” said Gudka, “and then we will source the produce and they come pick it up from us the next morning. In this way they do not have to incur the additional costs of transporting their goods and it also saves them time.”

SokoText is being incubated at the Nailab (nailab.co.ke) in Nairobi, a startup accelerator that offers a three to 12 month entrepreneurship program, with a focus on growing innovative technology-driven ideas.

SokoText’s summer pilot test confirmed taking the orders can work but found getting the product to the market in time was difficult.

The next step will be to set up a presence in the Mathare slum.

“We will be selling about seven to 10 different kinds of produce, and from our calculations, according to our projections for how much the Mama Mbogas buy every day, we hope to get  40-50 customers within three months,” Gudka said.

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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East Africa to get its First Dedicated Technology City

An ambitious scheme is underway to create a vast technology city on the outskirts of Nairobi, Kenya.

With information technology proliferating across Africa after decades of stagnation and underinvestment, a host of exciting new technologies have had to exist within structures not built for the 21st century.

One attempt to change things is Konza Technology City (konzacity.co.ke), an ambitious project that aims to build the infrastructure to host the companies of the 21st century for Kenya and East Africa. Konza Technology City joins a growing network of technology cities and parks across the global South. If the links between these centres of technological innovation and smart thinking can be strengthened, they have the potential to contribute to exceptional gains in human development.

Konza Technology City will be built on 5,000 acres (2,023 hectares) of land 60 kilometres south of Kenya’s capital, Nairobi.

The lead agency on the US $10 billion project is the Ministry of Information and Communication (http://www.information.go.ke/). The Kenyan government is seeking partners and investors to help with funding the project, whose components include a business process outsourcing (BPO) (http://en.wikipedia.org/wiki/Business_process_outsourcing) zone – where specific business functions are contracted to third party providers. There is also a financial district and a commercial district with office space.

This will be combined with the other side of Konza: hotels, hospitals, a sports stadium and other support services necessary to support a city. The idea is to develop the site over a period of 20 years, with the BPO and IT Educational and Science Park taking up 23 per cent of the site.

Kenya plans to expand its business process outsourcing sector and has been hosting conferences in Europe to gather the best advice. The sector has experienced double-digit growth in the past three years, rising on the increasing capacity brought by new undersea cables like TEAMs, Seacom and EASSy.

The idea is to put in place the building blocks of a 21st century Kenya and to become the leading hub for the whole of East Africa. Kenya has an ambitious plan to become a middle-income country by 2030 (http://www.vision2030.go.ke/).

There is scepticism about large projects in Kenya, with some fearing they will be abandoned before they are finished. But it does seem this project has galvanized a wide community of support. According to IT Web’s (http://www.itweb.co.za/) Ken Macharia, opponents of the project make various arguments. People in the information and communication technologies sector would like to see greater local capacity in place before such massive investment in buildings goes ahead. Others oppose the idea of having a planned city and would like to see things evolve organically. Still others question the government’s capacity to undertake such an ambitious scheme.

According to Macharia, the ‘if you build it, they will come’ argument is winning the day. The scope and ambition of the project has both excited many players within and outside government and focused their efforts.

Macharia even believes the public sector is way ahead of the private sector.

“The government is light years ahead in terms of the vision and drive of developing the ICT sector in the country, while the private sector is trying to catch up,” he said.

Kenya will become the first country in the region to build a technology city. It can look to China for some examples. One is Shenzhen City and its Science and Technology Park (http://www.ship.gov.cn/en/index.asp?bianhao=20). Or Cairo, Egypt’s Smart Village (http://www.smart-villages.com/).

Macharia also says the focus solely on technology is missing the bigger impact Konza can have.

“The city’s concept has financial, educational, commercial and industrial implications, which have not been sold as aggressively as the tech aspect has. Perhaps the better name for the proposed city would be Konza Special Economic Zone, where the key pillars mutually benefit from each other’s presence. Technology, after all, is a means to an end, not the end itself.”

The timing for a place like Konza City is excellent: undersea cables are being placed around and to Africa. The continent was notorious for being the most underserved continent on the planet and is in a furious transition from this information technology wasteland to a potential oasis of prosperity.

The undersea cable projects are promising a bandwidth explosion for the continent of Africa. The WACS cable (http://wacscable.com/index.jsp) is being put in place to link South Africa and Britain, and is due to be completed in 2012. It runs up the West Coast of Africa and will become the first direct connection to the undersea cable network for Namibia, the Congo and Togo.

It will increase South Africa’s bandwidth by an estimated 23 per cent.

Various technology investors, including the search engine giant Google, are also planning to build an undersea cable linking the so-called BRICS countries by 2014 – Brazil, Russia, India, China and South Africa. The cable will also link them all to the United States. The technology group i3 Africa is leading the project (http://www.i3-mea.com/africa/), which should open up 21 additional African countries to the world’s undersea cable network.

Konza Technology City could make Kenya a significant beneficiary of all this new connectivity and bandwidth.

By David South, Development Challenges, South-South Solutions

Published: July 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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An Innovator’s ‘Big Chicken Agenda’ for Africa

 

Increasing the quantity and quality of food in Africa will be critical to improving the continent’s human development. And a key element in giving Africa a more secure food supply will be boosting science and knowledge on the continent and making sure it is focused on Africa’s needs and situation.

One pioneering scientist is looking to the humble chicken to tackle two big problems in Africa: food security and household incomes. By pumping up the weight and productivity of African chickens, she hopes to eradicate hunger and boost household incomes.

Kenyan scientist Sheila Ommeh (http://www.awardfellowships.org/participants/success-stories/108-sheilaommeh.html ) is showing how local knowledge can give farmers the edge when it comes to improving Africa’s animal stock. An animal geneticist, she is trying to create a disease-resistant African chicken that can also produce plenty of eggs.

Her pioneering work is about trailblazing “a big chicken agenda in Africa,” she explained to TrustLaw, a global hub for free legal assistance and information on good governance and women’s rights.  She grew up in an area – Mount Elgon in western Kenya – where raising chickens was the primary source of both income and food. Her family raised chickens and the income from this helped to pay for her schooling.

Raising chickens is common in rural Kenya, and many of the people doing it are women.

Based on her experience, she saw how virulent diseases kill chicken flocks and destroy family incomes and disrupt lives – diseases like Newcastle (http://www.avianbiotech.com/diseases/newcastle.htm) and Gumboro (gumboro.com).

She works at the International Livestock Research Institute (ilri.org) based in Nairobi, Kenya. The ILRI “works at the crossroads of livestock and poverty, bringing high-quality science and capacity-building to bear on poverty reduction and sustainable development” and conducts research in Africa, South and Southeast Asia and China.

“I’m really passionate about giving back to the community an improved chicken that will really help their lives,” she explains.

Another project she is working on is the development of a drought-tolerant chicken. This chicken could prove very helpful in parts of Africa suffering from drought and hunger, like in the Horn of Africa.

Women are considered to be the majority producers of food in Africa yet just one in four people working in agricultural research in Africa is a woman, according to TrustLaw.

Ommeh has a PhD in chicken genetics and is a staunch believer in seeking out solutions to Africa’s problems within Africa: “In my view = it’s about time Africa looked for solutions in Africa for Africa,” she told a group of British Members of Parliament.

She will continue her research by looking at native African chickens. She is worried indigenous African chickens are being wiped out by cross-breeding and the introduction into the continent of exotic breeds, which are making African chickens more susceptible to viruses.

Her goal is to produce a disease-resistant breed of chicken weighing four kilograms and laying 250 eggs a year. This would be a big increase on current average weights, and a trebling of the yield.

“Definitely the incomes of these households will increase and that will (create) a rippling effect that will trickle up … And we hope that in 10 to 15 years the poverty issue in Africa will not be so serious,” Ommeh said.

“Chicken is a small livestock but I believe it has the capacity to have a big impact.”

For female scientists working in agriculture, African Women in Agricultural Research and Development (AWARD) (http://awardfellowships.org/) is seeking researchers looking to boost their technical and leadership skills. It is hoped that supporting more women researchers will have the effect of turning research priorities towards the needs of smallholder farmers, who make up the majority of  farmers in Africa.

By David South, Development Challenges, South-South Solutions

Published: May 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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New Appetite for Nutritious Traditional Vegetables

 

Throughout the history of farming, around 7,000 species of plants have been domesticated. Yet everyday diets only draw on 30 percent of these plants and even this number has been going down as more people consume mass-market foods (FAO).

One consequence has been poor nutrition resulting from the reduction in consumption of high-vitamin foods, leading to stunted mental and physical development across the global South.

Once-rich culinary traditions have wilted and left many people not knowing what to do with formerly common vegetables and fruits, even if they can actually find them in markets.

Between 94,000 and 144,000 plant species — a quarter to a half of the world’s total — could die out in the coming years, according to an estimate by Scientific American (2002). Among them are vital food crops, threatened by a world in which climate change is causing more weather turbulence and diseases and viruses can spread rapidly and destroy crops.

This scale of plant loss risks leaving the world’s food security dependent on fewer – and more vulnerable – domesticated species.

Despite being rich in vitamins, minerals and trace elements, African leafy vegetables have been overlooked in preference for cabbage, tomatoes, carrots, and other imported produce. But with rising food prices at local markets, people are looking again at these neglected African vegetables. In East Africa, this includes indigenous plants like amaranth (http://en.wikipedia.org/wiki/Amaranth), African eggplant, Ethiopian mustard, cowpea, jute mallow and spider plant.

Like tomatoes and potatoes, some of these vegetables are members of the nightshade family — but unlike those imports, they are indigenous to Africa. According to Patrick Maundu of Bioversity International (http://www.bioversityinternational.org/), African nightshades provide good levels of protein, iron, vitamin A, iodine, zinc, and selenium at seven times the amounts derived from cabbage. The high levels of vitamins and micronutrients, he says, are especially important to people at risk of malnutrition and disease, particularly HIV/AIDS.

As the cost for basic foodstuffs have shot up during the global economic crisis, growing food has become an increasingly lucrative source of income. Estimates of the number of people doing this across Africa range from hundreds of thousands to millions.

In the bid to reduce the over-dependence on imported foods, urban farming is coming to the rescue and becoming an effective survival tactic in Africa’s fast-growing cities. Thousands of urban workers in Kenya’s capital, Nairobi, are supplementing their wages by investing in farms growing food.

Eunice Wangari, a nurse in Kenya, supplements her US $350/month salary with money earned from growing food. “For too long our country has been flooded with imported food and westernized foods,” Wangari told The Guardian newspaper. “This is our time to fight back – and grow our own.”

In Kenya, this type of agriculture usually involves an urbanite taking a stake in farmland outside the city. Relatives then do the farming. Mobile phones play a key role in this approach. The urban dweller can keep in touch with the farm by phone and receive updates on progress. They use their knowledge of urban food tastes to then adjust the crops and increase profits.

An accountant, James Memusi in Nairobi, is growing mushrooms in a spare bedroom in his home and then selling them to hotels and supermarkets, according to The Guardian. Miringo Kinyanjui is selling unrefined maize and wheat. Loved for its nutritional qualities, the flour is also flavoured with amarathan, a common green vegetable in Kenya.It is a clever way to make the most of the fact that many urban dwellers have some access to land in the countryside.

Pride is also returning to the topic of food, as people re-discover traditional foods and vegetables and fruits.

In Liberia, president Ellen Johnson-Sirleaf has launched a “Back to the Soil” campaign to get urban dwellers to farm and help the country lose its dependence on foreign food imports.

Liberia is trying to reduce the importing of rice and tomatoes.

In Zambia, the embracing of traditional foods has been fuelled by recipes used by a chain of popular restaurants. This appetite has driven demand for dried pumpkins, ‘black jack’ leaves and fresh okra.

The success of this revival of traditional foods has attracted big multinationals as well. Unilever Kenya ran a campaign in 2008 called ‘taste our culture,’ promoting African herbs and spices.

By David South, Development Challenges, South-South Solutions

Published: November 2009

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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Toilet Malls Make Going Better

 

Across the global South, clever entrepreneurs are transforming services that were bare-bones, grim and out-of-date into modern facilities packed with features that help to pay for their operation. In Kenya, an entrepreneur has used this approach to transform the poor quality of public toilets.

Public sanitation is essential for good health and a high quality of life. Around the world, more than 2.6 billion people, or 41 percent of the world’s population, are without access to basic sanitation. As a result, most have to make do and defecate or urinate wherever they can. In crowded urban areas, the result is an unpleasant source of disease and filth that fouls living spaces and sickens or kills many people.

Nairobi’s slums are notorious for so-called ‘flying toilets’ or ‘scud missiles’: plastic bags filled with excrement that act as the only toilet available for many. Half the population also has no access to clean water. It has been estimated these appalling conditions contribute to up to 50 percent of health problems for slum dwellers.

The Iko Toilet started by David Kuria first came to life in Nairobi’s central business district.

“What we saw in the last 10 years, the few public toilets that existed were in very poor shape,” he told CNN. “In fact they had been taken over by the street boys, and they were a point for mugging and drug trafficking. With that background we needed some sort of social transformation. For people to gain the confidence that you could have a public toilet which is clean which is safe and you can go in and come out the same way.”

The solution was “toilet malls,” complete with a range of on-site micro businesses to make going to the public toilet attractive. Apart from music and radio to listen to, there is a shoe shining service, snack bars selling fruit and water, and even banking services. The idea is that the micro businesses pay for the upkeep and cleaning of the toilet. And their presence also keeps the toilets safe because there is always somebody around.

While the concept was pioneered in the business district, it is now moving out into Nairobi’s slums. So far, Kuria has completed 12 toilets in Nairobi and has another 18 under development. He is also rolling out the toilets to other parts of the country. He receives the plots of land from local municipalities and his company, Ecotact, builds the toilets.

It costs five Kenyan shillings (US .07 cents) to use the toilets.

Kuria had become frustrated with the city council’s inability to provide clean and safe public toilets.

“I thought for some time before coming up with the idea,” he told The Nation. “People had nowhere to go and thugs were holding them to ransom in the few facilities then run by the council.”

Kuria said people are leaving good comments about the toilets and say it makes them proud to be Kenyan.

The cost to build a toilet is Sh 2 million (US $26,000) and the toilet is managed by Kuria for five years. At the end of the contract, he will hand them over to the local council.

“We are getting support from UNDP and other partners like East African Breweries, the Global Water International and the Rotary International,” he said.

An architect by training, Kuria is hoping to employ more than 1,000 people by the end of this year. So far 120 people work for the Iko Toilets. Like so many others, he is also affected by chronic water shortages.

“We are worried because when there is scarcity of water, we are forced to buy it at an additional cost,” he said.

Private vendors currently provide the water for the toilet malls.

Iko Toilets are so successful they have made it into the ‘Hall of Fame’ at the World Toilet Organization (http://www.worldtoilet.org/). Kuria was also winner of the World Economic Forum’s Africa Entrepreneur of the Year award earlier this year.

And his ambitions extend beyond Kenya.

“We also want to go to other countries. Uganda, Rwanda and South Africa have already approached me for Iko Toilets,” he said.

By David South, Development Challenges, South-South Solutions

Published: August 2009

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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