White African

  • Tech Success in Africa is Built on the Ordinary

    Posted: December 27, 2010, 9:08 am by HASH

    It’s not a big surprise to see Nokia’s Symbian operating system is the most popular in Africa. We all knew that, but it’s by how much that draws your attention.

    Royal Pingdom has an excellent post on the web usage (which is what they can measure) of the top OS use around the world. It’s amazing to see the difference between Africa, Asia and South America as opposed to Europe and North America.

    While, as a developer, it’s a lot more sexy to work on the cutting edge operating systems like iOS and Android you’d be making a mistake to do that in Africa. Unless you’re developing apps that are global in scale or you’re doing client work, you should be focusing on Symbian (or Samsung’s Bada OS in some countries). It’s where the numbers are.

    Reaching Ordinary Africans

    This brings to mind something I’ve been thinking about for a while. Mxit, as most people know now, is the mobile social network out of South Africa. It was built about 4 years ago and has 20 million+ users.

    Mxit didn’t get big because they tried to build something that was cool and sexy for the middle/upper classes in South Africa (which is what so many try to do there). Instead, they built one of Africa’s most successful tech companies by focusing on everyday South African youth and fulfilling their needs.

    In fact, you can take this one step further. Almost any meaningful success in Africa’s mobile or web space has been from companies focused on meeting the needs of ordinary people. Go ahead, think of the success stories in Africa’s tech space, now name them and see if they’re made for a global market, Africa’s elite, or for the masses.

  • (The Lack) of African ICT Research

    Posted: December 15, 2010, 3:39 pm by HASH

    I’m at the ICTD conference at Royal Holloway, University of London, this week. Usually I wouldn’t be at a conference full of academics and researchers, but Tim Unwin (conference Chair), was interested in having a practitioner panel leading it off, of which I was a part. It’s a conference of very intelligent and driven people, with a lot more patience than myself, studying a lot of what’s going on in the ICT space as it relates to development in Africa, Asia and South America.

    More Research in/of Africa, by Africans and African Institutions

    One of the people that I’ve been speaking a lot with here is Shikoh Gitau (on Twitter), a Kenyan lady who has spent the last few years down at the University of Cape Town doing research. In the talk about “ICTD Research by Africans: Origins, Interests, and Impact” by Gitau S; Plattiga, P and K.Diga, there were some very interesting points given and a great argument made for why Africans need to be involved more.

    ICTD Research by Africans: Origins, Interests, and Impact View more presentations from kdiga.

    “African research agendas need to involve Africans more”
    - Geoff Walsham

    It’s no surprise that most of the ICT research comes from South Africa, followed by Nigeria and Botswana. But even if you added up all the research done in all of Africa, it is only 9% of the research done in Africa is done by African institutions.

    Who are the researchers in Africa?

    This, of course, is what Shikoh and her team looked into. Here’s where you can help to. What are the African ICT research institutions? What are the publications?

    Add any ones that you know to the comments below and I’ll add them to the list above.

    Thoughts on Doing More

    One of my questions about why there isn’t more African ICT research was whether this was a supply and demand problem. Is it because there aren’t enough researchers in Africa? Not enough research institutions? Or, is it because the people paying for and funding research are only funding researchers in their own back yard (the US and Europe)?

    Part of the answer seems to lie in the lack of incentives for African academics to get away from “just” lecturing and into research. Another seems to be the lack of funding organizations looking for Africans to do the actual research.

    I’m intrigued enough by this that I’m thinking of how the iHub can be used to support African researchers. If that interests you, let me know.

  • The Kenyan Mobile Money Ecosystem

    Posted: December 8, 2010, 10:36 pm by HASH

    [This is a guest post by Ben Lyon of Kopo Kopo, and recently of FrontlineSMS:Credit, who I consider to be one of the leading experts on mobile money, banking and payments in Africa. Kopo Kopo aims to make the integration of microfinance and mobile money as affordable as possible by offering a software-as-a-service that connects m-money transaction data to customer accounts in a range of common loan management systems. You can follow Kopo Kopo on Facebook and Twitter.]

    Kenya is by far the most exciting, innovative mobile money market on earth. Below is an overview of some of the major and upcoming players.

    MAJOR PLAYERS

    Safaricom M-Pesa
    Launched in March 2007, Safaricom M-Pesa was the first mobile money system in Kenya. It is now the most successful mobile money deployment on earth, boasting use by 51% of the adult population. In addition to person-to-person transfers, you can use M-Pesa to remit funds from the UK to Kenya, pay bills, purchase goods, buy airtime, and, with the launch of M-Kesho, move funds to and from an interest-bearing account with Equity Bank. Fun fact: Safaricom M-Pesa has more agents in Kenya than Wells Fargo and Wachovia have ATMs in the United States.

    Airtel Money
    Formerly Zain Zap, Airtel Money is the second largest mobile money system in Kenya. Prior to its acquisition, Zain was focused on creating a “cashless society” whereby any number of needs could be met via mobile money. Zain was also committed to its notion of One World, the idea that a Zain customer in Country X should be able to call a Zain customer in Country Y a at local rate. One World was the source of much speculation with regard to international person-to-person mobile money transfer. It will be interesting to see if / how Airtel changes course, especially with regard to pricing.

    Orange Money
    Orange Money launched in late 2010 in association with Equity Bank. Instead of offering the same features as M-Pesa, Zap, or yuCash, Orange opted to create a de facto front-end for Equity Bank accounts, allowing it to exceed regular transaction and m-wallet balance thresholds.

    Essar yuCash
    Essar yuCash launched in December 2009 and is powered by Obopay. yuCash offers some standard features such as person-to-person transfer and balance inquiry as well as some unique features like requesting money, adding a short message to a payment, and inviting friends to join. yuCash is also unique insofar as it offers five different front-ends: WAP, SMS, Voice, USSD, and STK.

    Equity Bank
    Equity Bank is the largest microfinance institution in Kenya and is nothing short of a powerhouse. It has an extensive ATM network throughout Kenya and has integrated with M-Pesa (M-Kesho), Orange Money, and yuCash.

    Musoni
    Musoni is at the cutting edge of microfinance, enabling loan disbursal and repayment via Safaricom M-Pesa and Airtel Money. Musoni plans to conduct country studies in Rwanda, Tanzania, and Uganda in the coming years.

    Paynet Group
    Paynet is responsible for all Visa transactions in Kenya, interchange for 2,000+ ATMs, and PesaPoint. Due to their interaction with Visa, they are PCI DSS compliant, meaning that their system is both redundant and incredibly secure. Paynet aggregates and formats transaction data for several mobile money providers in East Africa.

    UPCOMING PLAYERS

    iPay
    A product of Intrepid Data Systems, iPay enables merchants to accept online payment via Safaricom M-Pesa, Zain Zap, and Essar yuCash. Prominent users include PewaHewa, Fenesi, and Zetu.

    PesaPal
    PesaPal is a product of Verviant Consulting that, according to CEO Agosta Liko, aims to “make sense of the Kenyan payment landscape”. PesaPal lets online merchants collect payments via M-Pesa, Zap, Google Checkout, and a range of common credit cards. Their latest product, e-Ticketing, allows event organizers to accept online payments for registration via mobile money.

    M-Payer
    A recent product of Zege Technolgies, M-Payer enables real-time mobile money transaction processing. The CEO of Zege Technologies, Kariuki, played an instrumental role in the M-Pesa / Equity Bank integration that resulted in M-Kesho.

    Lipuka
    Powered by Cellulant, a company that serves 60M+ subscribers throughout Sub-Saharan Africa, Lipuka integrates bank and payment channels to enable music downloads, bill payments, and information services via WAP.

    Moca
    Formerly called ZungukaPay, Moca is a product of Symbiotic Media Corsortium. ZungukaPay enabled online merchants to accept payments via M-Pesa, Zap, yuCash, PayPal, Google Checkout, and a range of common credit / debit cards. ZungukaPay also had an open API for integration purposes. The new product, Moca, takes a different turn by enabling customers to buy ‘Moca credits’ via mobile money, which they then use to pay for goods and services on partner websites (e.g. KeleleMobile). Fun fact: selling non-refundable credits precludes Moca from being seen as an e-money issuer by the Central Bank of Kenya.

    JamboPay
    A product of Web Tribe Limited, JamboPay is an “Online Checkout & Micro-Payment Service” that enables merchants to accept online payments via M-Pesa, Zap, yuCash, and Visa credit/debit cards. JamboPay has a tariff structure similar to PayPal in the US: a commission per transaction + a flat fee for any transactions initiated over the JamboPay web platform.

    MobiKash
    MobiKash, a third party mobile money provider, is operated by MobiCom Africa Limited in partnership with Sybase 365 and Seal Systems. MobiKash leverages USSD to give Kenyans on any mobile network real-time access to accounts at participating banks, including Post Bank, National Bank of Kenya, and Trans National Bank. MobiKash uses the Sybase 365 Mobiliser Platform.

    KrossPAY
    Formerly PesaPot Holdings Limited, KrossPAY worked with PAYG Solutions to develop a hosted core banking and financial management platform for microfinance institutions, credit unions, and community benefit organizations. Some PAYG Solutions programmers were involved with the creation of M-Pesa, so there may be a mobile money integration in the works. KrossPAY also offers a “universal mobile money transfer and payment” service called CaribPay.

    Jipange KuSave
    Jipange KuSave is an initiative of Mobile Ventures Kenya Ltd., a subsidiary of Signal Point Partners. Launched as a pilot in 2010 in partnership with FSD Kenya and CGAP, Jipange KuSave aims to extend affordable micro-savings and micro-credit to the ‘mwanachi’ (Kiswahili for ‘common man’) via mobile phones.

    Tangaza Limited
    Managed by Mobile Pay Limited and a network of independent trustees, Tangaza enables both local and international money transfer as well as services like utility bill payment and remote airtime purchase. Tangaza is accessible via USSD and the internet and works across multiple mobile networks.

    NOTABLE M-MONEY INTEGRATIONS

    PewaHewa
    PewaHewa is similar to the iTunes Store insofar as you can browse for musical artists, albums, genres, etc. and purchase songs via mobile money. PewaHewa is powered by iPay.

    Kalahari
    Often referred to as “the Amazon.com of Africa”, Kalahari offers a wide range of online goods and services, which customers can pay for via Safaricom M-Pesa.

    Kilimo Salama
    Kilimo Salama, Kiswahili for “safe farming”, is a crop insurance product offered by the Sygenta Foundation for Sustainable Agriculture. Kilimo Salama enables farmers to pay crop insurance premiums and receive payouts via Safaricom M-Pesa.

  • The Kenyan Mobile Money Ecosystem

    Posted: December 8, 2010, 10:36 pm by HASH

    [This is a guest post by Ben Lyons of Kopo Kopo, and recently of FrontlineSMS:Credit, who I consider to be one of the leading experts on mobile money, banking and payments in Africa. You can follow Kopo Kopo on Facebook and Twitter.]

    Kenya is by far the most exciting, innovative mobile money market on earth. Below is an overview of some of the major and upcoming players.

    MAJOR PLAYERS

    Safaricom M-Pesa
    Launched in March 2007, Safaricom M-Pesa was the first mobile money system in Kenya. It is now the most successful mobile money deployment on earth, boasting use by 51% of the adult population. In addition to person-to-person transfers, you can use M-Pesa to remit funds from the UK to Kenya, pay bills, purchase goods, buy airtime, and, with the launch of M-Kesho, move funds to and from an interest-bearing account with Equity Bank. Fun fact: Safaricom M-Pesa has more agents in Kenya than Wells Fargo and Wachovia have ATMs in the United States.

    Airtel Money
    Formerly Zain Zap, Airtel Money is the second largest mobile money system in Kenya. Prior to its acquisition, Zain was focused on creating a “cashless society” whereby any number of needs could be met via mobile money. Zain was also committed to its notion of One World, the idea that a Zain customer in Country X should be able to call a Zain customer in Country Y a at local rate. One World was the source of much speculation with regard to international person-to-person mobile money transfer. It will be interesting to see if / how Airtel changes course, especially with regard to pricing.

    Orange Money
    Orange Money launched in late 2010 in association with Equity Bank. Instead of offering the same features as M-Pesa, Zap, or yuCash, Orange opted to create a de facto front-end for Equity Bank accounts, allowing it to exceed regular transaction and m-wallet balance thresholds.

    Essar yuCash
    Essar yuCash launched in December 2009 and is powered by Obopay. yuCash offers some standard features such as person-to-person transfer and balance inquiry as well as some unique features like requesting money, adding a short message to a payment, and inviting friends to join. yuCash is also unique insofar as it offers five different front-ends: WAP, SMS, Voice, USSD, and STK.

    Equity Bank
    Equity Bank is the largest microfinance institution in Kenya and is nothing short of a powerhouse. It has an extensive ATM network throughout Kenya and has integrated with M-Pesa (M-Kesho), Orange Money, and yuCash.

    Musoni
    Musoni is at the cutting edge of microfinance, enabling loan disbursal and repayment via Safaricom M-Pesa and Airtel Money. Musoni plans to conduct country studies in Rwanda, Tanzania, and Uganda in the coming years.

    Paynet Group
    Paynet is responsible for all Visa transactions in Kenya, interchange for 2,000+ ATMs, and PesaPoint. Due to their interaction with Visa, they are PCI DSS compliant, meaning that their system is both redundant and incredibly secure. Paynet aggregates and formats transaction data for several mobile money providers in East Africa.

    UPCOMING PLAYERS

    iPay
    A product of Intrepid Data Systems, iPay enables merchants to accept online payment via Safaricom M-Pesa, Zain Zap, and Essar yuCash. Prominent users include PewaHewa, Fenesi, and Zetu.

    PesaPal
    PesaPal is a product of Verviant Consulting that, according to CEO Agosta Liko, aims to “make sense of the Kenyan payment landscape”. PesaPal lets online merchants collect payments via M-Pesa, Zap, Google Checkout, and a range of common credit cards. Their latest product, e-Ticketing, allows event organizers to accept online payments for registration via mobile money.

    M-Payer
    A recent product of Zege Technolgies, M-Payer enables real-time mobile money transaction processing. The CEO of Zege Technologies, Kariuki, played an instrumental role in the M-Pesa / Equity Bank integration that resulted in M-Kesho.

    Lipuka
    Powered by Cellulant, a company that serves 60M+ subscribers throughout Sub-Saharan Africa, Lipuka integrates bank and payment channels to enable music downloads, bill payments, and information services via WAP.

    Moca
    Formerly called ZungukaPay, Moca is a product of Symbiotic Media Corsortium. ZungukaPay enabled online merchants to accept payments via M-Pesa, Zap, yuCash, PayPal, Google Checkout, and a range of common credit / debit cards. ZungukaPay also had an open API for integration purposes. The new product, Moca, takes a different turn by enabling customers to buy ‘Moca credits’ via mobile money, which they then use to pay for goods and services on partner websites (e.g. KeleleMobile). Fun fact: selling non-refundable credits precludes Moca from being seen as an e-money issuer by the Central Bank of Kenya.

    JamboPay
    A product of Web Tribe Limited, JamboPay is an “Online Checkout & Micro-Payment Service” that enables merchants to accept online payments via M-Pesa, Zap, yuCash, and Visa credit/debit cards. JamboPay has a tariff structure similar to PayPal in the US: a commission per transaction + a flat fee for any transactions initiated over the JamboPay web platform.

    MobiKash
    MobiKash, a third party mobile money provider, is operated by MobiCom Africa Limited in partnership with Sybase 365 and Seal Systems. MobiKash leverages USSD to give Kenyans on any mobile network real-time access to accounts at participating banks, including Post Bank, National Bank of Kenya, and Trans National Bank. MobiKash uses the Sybase 365 Mobiliser Platform.

    KrossPAY
    Formerly PesaPot Holdings Limited, KrossPAY worked with PAYG Solutions to develop a hosted core banking and financial management platform for microfinance institutions, credit unions, and community benefit organizations. Some PAYG Solutions programmers were involved with the creation of M-Pesa, so there may be a mobile money integration in the works. KrossPAY also offers a “universal mobile money transfer and payment” service called CaribPay.

    Jipange KuSave
    Jipange KuSave is an initiative of Mobile Ventures Kenya Ltd., a subsidiary of Signal Point Partners. Launched as a pilot in 2010 in partnership with FSD Kenya and CGAP, Jipange KuSave aims to extend affordable micro-savings and micro-credit to the ‘mwanachi’ (Kiswahili for ‘common man’) via mobile phones.

    Tangaza Limited
    Managed by Mobile Pay Limited and a network of independent trustees, Tangaza enables both local and international money transfer as well as services like utility bill payment and remote airtime purchase. Tangaza is accessible via USSD and the internet and works across multiple mobile networks.

    NOTABLE M-MONEY INTEGRATIONS

    PewaHewa
    PewaHewa is similar to the iTunes Store insofar as you can browse for musical artists, albums, genres, etc. and purchase songs via mobile money. PewaHewa is powered by iPay.

    Kalahari
    Often referred to as “the Amazon.com of Africa”, Kalahari offers a wide range of online goods and services, which customers can pay for via Safaricom M-Pesa.

    Kilimo Salama
    Kilimo Salama, Kiswahili for “safe farming”, is a crop insurance product offered by the Sygenta Foundation for Sustainable Agriculture. Kilimo Salama enables farmers to pay crop insurance premiums and receipts payouts via Safaricom M-Pesa.

  • Kenya’s Groupon Clones: Rupu and Zetu

    Posted: December 6, 2010, 11:29 am by HASH

    Groupon has been a massive success in the US, it’s a deal-of-the-day site, with projected revenue of $500m in just it’s second year. It uses the framework of “collective buying”, which means that if enough people sign up for the deal, then it’s on. If not enough people sign up, then it’s off. Revenue is shared per deal, Groupon only wins if the company doing the deal wins. Of course, this has caught the attention of savvy business people in Africa.

    Rupu

    Rupu is launching today. The word comes from the term “marupurupu“, which is a freebie, something small handed out in the employer-to-employee relationship (could be considered a bonus). Munyutu Waigi is the business man behind the operation, and it was interesting to note that it was built out by Charles Kithika and Joshua Musau – all three members of the iHub.

    Rupu uses Jambopay, which handles local mobile payment options Mpesa and Zap, as well as Visa.

    Here’s their video on how it works:

    Zetu

    Zetu launched about a month ago and they’ve had a few more deals under their belt – everything from manicures to movies. “Zetu” means “our” in Swahili, and it’s playing to the collective action part of the deal.

    “Zetu negotiates huge discounts on popular local goods, services and cultural events. Then we offer the deals to thousands of subscribers in a free daily email. The deals are activated only when a minimum number of people agree to buy. So our subscribers get a great deal and the business gets a ton of new customers.”

    Zetu uses iPay, which allows you to pay via your mobile with Mpesa, Zap and Yu-Cash.

    Thoughts

    I’m not sure if Kenya is a big enough market for multiple services like this. I believe it will come down to which of them can get past the middle and upper class customers and get to the average-income customer. The deals are definitely within the right price range, but I’m wondering if the distribution medium works. Should there be better mobile integration?

    Each of the sites are also quite new, which means that there are a few rough edges that need to be worked out over the coming months. Most of the issues stem around user interaction, and making it a very easy and friendly transaction.

    Collective discount/buying sites take a lot of business-side deal making, as well as the ability to garner a lot of people to follow and push the deals that they like to their friends. Time will tell which of these companies has the business chops to keep the site going and make deals happen that bring the masses of consumers needed to make it successful.

    Finally, while there’s nothing wrong with copying a successful business model, the Rupu site is a little too much of direct knock off of Groupon – the colors, logo layout and site look way to close. They took the “clone” part a little to seriously… At least Zetu has a different feel to it and gets points for originality.

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