Understanding the emerging (African) market consumer --- Never NOT acknowledging the informal market

Vahid Monadjem of new company Nomanini, has developed a product that dispenses prepaid airtime (instead of the scratch card) which he believes will adequately build upon/revolutionize how the informal market does business. Given the increasing interest in ICT for Development, there is seeming disregard for how these emerging market or BoP populations actually use technology. Monadjem, having done research as a Mckinsey & Company’s global fellow for emerging market product development, explains his hypothesis for the real origins of Africa's "mobile revolution"

I think the scratch card has really opened up the possibility to serve deeper and deeper into underserved markets… I don’t think the mobile revolution in Africa would have happened without the scratch card… That was the best method available and that was kind of the benchmark we were trying to improve against.

Nomanini helps traders print airtime simply from different retailers

It's been purported that about 70 percent of the "bottom billion" live in Africa , most notably by Dr. Paul Collier of Oxford. Yet, the informal economy accounts for 80 percent of new jobs across the continent and is a major contributor to wealth. So who are we making products for and what do entrepreneurs have in mind when they make products for these people? It seems Mr. Monadjem has given the world real insight into the "bottom billion" with his Nomanini product. Even the word Nomanini--which means "anytime" in Zulu--is testament to the idea that the bottom billion may be much more variable than the "living on $2 a day" characteristic.

The Tech Hub : An African-Driven Innovation?

For about half of the year, I read nothing but the word "Tech Hub" or "Tech Lab".

Adam Jackson of TechCrunch recently wrote an article entitled "If Start-ups can be built in Ghana, Africa They can be built in Cleveland, Ohio". The title, while offering congratulation to the MEST Incubator center in Ghana, in the same token seems slightly demeaning to African accomplishment. As one commenter put it:

I feel like people should stop downplaying Africa, like it isn't a multifaceted continent, with people of different backgrounds and capabilities. The Moors of Egypt had one of the most fascinating civilizations prior to being conquered (which took hundreds of years to do). There are villagers to billionaires in Africa, so stop with the "if Ghana can do it, then people in Cleveland can." Of course they can! That is what is so fascinating about the web and mobile market. No one is limited by location anymore.

And I completely agree.

That aside, the article points out a growing facet of the African/emerging markets growth story. And it involves technology. The African mobile landscape has proved a viable investment for developing business start-ups. I think the slight advantage that emerging markets have over its' more developed counterparts is that they possibly have the benefit of developing (albeit from behind) in a more efficient and socially beneficially manner.

FULL GRAPHIC HERE

Where the government has failed its' African citizens, the rapid advancement of Web 2.0 puts the power in the hands of a younger generation. Whether it is testing out cards for transportation or creating whole transformational platforms like Ms. Juliana Rotich of Ushahidi has done for Kenya and abroad.

oAfrica has an effective breakdown of The World Bank report, "Information and Communications for Development 2012: Maximizing Mobile" HERE, which outlines the future of mobile and it's role in emerging
markets.


There is a void in the market to fill here and hopefully it can be properly scaled and replicated for the benefit of many citizens.

HODGE PODGE AUGUST: A collection of ideas and sources

Yes... I am quite ashamed of myself for not keeping up with this darling but schoolwork (a.k.a my life) caught up with me quite drastically. But that hasn't stopped my brain from raking up with ideas and personal projects. I'm going to try to put together a culmination post  including all of  the inspirational obsessions that I have come across these past two months including my own take on certain issues as well. Well let's get started:

In my previous post, I expressed the need for viable artist/artisan collections centres in Africa. This is a need that has been addressed on many levels throughout the region. Of course, textiles are also apart of this. I remember one evening I was watching a CNBC documentary on J. Crew and its' turnaround as a company. There was a particular scene, where CEO Mickey Drexler goes to Italy to pick out fabrics at one of Milan's textile warehouses.  There were fabrics/textiles swatches dating back to as far as the 1700s held in a large collections of books. This to me signifies in part the reason why European/American fashion is so penetrating in our everyday lives. There is a sustained heritage. It's not so much about Gucci as it is about Italian leather. It's not so much about Chanel as it is about French silk. Not so much about Levi's as it about American denim or the white cotton tee. 

Africa in terms of economics, has always been able to produce its' own goods and in terms of fashion it can offer something other than a trend. SUNO, founded by Max Osterweis  is a micro-scale example of what can happen when African fashion focuses on developing and collecting local textiles/techniques to produce unique luxury brands through the use of vintage Kenyan kangas. Most importantly, developing African-made textiles is necessary to establishing African design as an innovative force to reckoned with. Online consultancies such as AfricanFashionGuide and Source4Style are at the forefront of this growing industry. Picture sources (from left to right): 1,2,3

Sources (L to R): 1,2,3

Two months ago, I read an article in WIRED UK, on the rising influence of pop star Lady Gaga's manager Troy Carter. After years of working the music business, Carter along with the help of several key Silicon Valley developers formulated a social media model called Backplane based on online fanbase communities. The first Backplane-powered site was that of Littlemonsters.com (for Lady Gaga). The site requires a login similar to GILT GROUPE and is set to provide Miss Gaga with a platform to pass on important information. I began thinking immediately of how a Backplane-powered site could be used to connect farmers/collectives in "FAIRTRADE" countries to suppliers everywhere. There are times when I think that FAIRTRADE has become a marketing route for selling products to the "hipsters and tree-huggers" (as the conservative base would call them) of the developed nations. Who says that consumers in emerging markets don't want to buy fairtrade--or organic--too? Or that a small-scale farmer in Ecuador can't competitively bargain with a grocery owner in Botswana and vice versa? Perhaps a social media outlet such as a Backplane-powered site can help to expand the power of fairtrade among small commerce. While trading sites such as the Chinese Alibaba already provide hubs for business-to-business transactions, whether or not subscribers are certified FAIRTRADE isn't immediately verifiable. Not to mention, an online community could provide farmers with a to trade equipment and tips as well as enhance the usage of mobile banking.

(via VenturesAfrica)

Being that developing a social-value based high end brand is one of those things I have sketched in my composition book of dreams, I found this list to be quite informative. Here are some bits and pieces that I found interesting:

There were definitely other innovative things that caught my eye these past two months, that I can't quite think of at the moment but I will be sure to cover those in subsequent posts (hopefully without such a long period of absence this time!)

By the way be sure to follow me: TUMBLR | TWITTER

Technology-based start-ups in the Democratic Republic of Congo

Can impact investing and social entrepreneurship turn natural resource "curses" into blessings?

The central African nation of the Democratic Republic of Congo, a nation about 2.34 million sq km in area, is arguably one of the most resource abundant in natural resources. From minerals, to potential hydro-power and even uranium Congo is a geographical hotbed of natural resource extraction. Cobalt, diamonds, gold and copper ores can all be in various regions within the DRC (the eastern border and southeastern-and western provinces). Yet, this country with a population of about 67 million, has been deemed one of the "world's worst" in just about every human development category. A decade-long civil war centered in the Eastern Congo has left more than  6 million civilians dead, mostly due to regional militias who profit from the looting of the aforementioned minerals. Despite the many complex, historical internal and external factors at the root of this dismal situation, the fact remains that the institutions in place are continued enablers to a rampant addiction of corruption and inefficiency that has effectively taken a toll on the economic state of this vast nation .

Small business appears to be the only viable current solution to this issue: building self-sufficiency from the ground up. Simply boycotting raw materials takes away from whatever small day-to-day revenue that local artisanal mining operations provides for livelihoods.  How can Congolese citizens possibly utilize the abundant resources of their environment to create communities of sustainable business and growth? Most “green” technologies (technologies used in alternative energy uses, for example) utilize some of the same minerals found in the DRC. The DRC supplies about two-thirds of the world’s cobalt. Cobalt has been outlined by the US Department of Energy as a critical metal in clean energy production. Cobalt also sustains uses in the production of glass and porcelain. Copper is also a growing essential element in HVAC systems. The mineral can be found in Congo’s Copper Belt (Between the cities of Lumbumbashi and Kolwezi in the southeast) as well as various other regions. However, considering the volatile nature of commodities pricing many investors have a habit of starting up and then fleeing projects, which creates an unsustainable business environment for both larger and smaller mining operations. Is it possible then, that local miners with access to minerals/scrap minerals that are the basic building blocks to modern technology could also actually produce products essential to it’s own countries growth? Could invested-in technology expedite the growth of regional agricultural sectors? The fact, that this is some sort of novel idea is a testament to the perceived logistical supply chain challenges of producing goods and exporting goods within the African continent.

Research and development is the fundamental basis for innovation. However, research and development cannot be sustained without investment. Particularly in the Democratic Republic of Congo, where for example, the abundance of copper can serve as a base for copper wiring distribution. The opportunity for research is there. Just as a food for thought example, impact invested research on the sustainable uses of such materials as copper for the purpose of agriculture--vertical farms/greenhouses---can

Copper-based rainwater capture system in South Africa
(source: David Bello)

eventually stimulate local economies in the DRC to actually manufacture viable local products from raw materials. While general infrastructure poses a challenge to engaging technological research on the continent, it is not far-fetched. Many Africans, despite any hindrance in living conditions have been exposed to widespread telecommunications outlets. A total of about sixty-five percent of people in Sub-Saharan Africa have access to mobile phones, most with Internet access. This solid telecommunications base can lead to even more technology-based business start-ups and research projects. Moreover, “modern” forms of currencies such as Bit.coin and the “M-Banking” financial organizations have penetrated African markets since the early 2000s. M-PESA based in Kenya, a service originally set-up for microfinance borrowers, has gathered a total of 14 million subscribers engaged in daily monetary transactions from mobile to person. This too, has the ability to hone socially impactful investments in the direction of innovative research organizations and entrepreneurs based in the continent. Local/regional community organizing can strengthen entrepreneurial efforts by involving the surrounding community in fundraising efforts.

This 2011 Google ad---in all of its' marketing glory---shown above is a shining example of what happens when mobile knowledge stimulates budding entrepreneurs, regardless of circumstance.


Did I mention that copper is very recyclable? Sounds like donating pennies could be a great start for a bunch of entrepreneurship projects in Africa! Too much? Well, anyway!