White African

• Africa: Turning the World Upside Down

  Posted: October 26, 2011, 3:57 am by HASH

  Whitespace in business is defined as a place, “…where rules are vague, authority is fuzzy, budgets are nonexistent, and strategy is unclear…” It’s the space between the organizational chart, where the real innovation happens. It’s also a great definition for what we see in Africa, and it’s the reason why it’s one of the most exciting places to be a technology entrepreneur today.

  I just finished with a talk at PopTech on Saturday where I talked about “The Idea of Africa” and how Western abstractions of the continent are often mired in the past. It’s not just safaris and athletes, poverty and corruption – it’s more nuanced than that.

  Today I’m in London for Nokia World 2011 and am speaking on a panel about “The next billion” and how it might/might not turn the world upside down. In my comments tomorrow, I’ll probably be echoing many of the same thoughts that came out over the weekend at PopTech.

  Here are a few of the points that we might get into tomorrow:

  Horizontal vs Vertical scaling

  I talk a lot about this with my friend Ken Banks, where we look to scale our own products (Ushahidi and FrontlineSMS) in a less traditional format. As entrepreneurs you’re driven to scale, but our definition of scale in the West tends to be monolithic. Creating verticals that are incredibly efficient, but which decreases resilience.

  In places like Africa, we have this idea of horizontal scaling, where the product or service is grown in smaller units, but spread over multiple populations and communities. Where a smaller size has its own benefits.

  In this time of corporate and government cuts, where seemingly oversized companies are propped up in order to not fail, there are some lessons here for the West. We shouldn’t be surprised that the solutions to the West’s problems will increasingly come from places like Africa.

  Instead of thinking of Africa as a place that needs to be more like the West, we’re now looking at Africa and realizing the West need to be more like Africa.

  Reverse distribution

  Will we increasingly see a new set of innovative ideas, products and services coming from places like Africa and spreading to the rest of the world? Why is Africa such a fertile ground for a different type of innovation, a more practical one – or is it?

  Disruptive ideas happen at the edge.

  Africa is on the edge. While the world talks at great length about the shifting of power from the West (US/Europe) to the East (India/China), Africa is overlooked. That works in our favor (sometimes).

  A couple of the ideas and products that have started in Africa and been exported beyond the continent include; Mpesa, Ushahidi and Mxit.

  
  Mpesa – the idea came from Vodafone, but product met it’s success in Kenya. Over $8 billion has been transferred through it’s peer-to-peer payment system. Vodafone has failed to make the brand go global, but the model itself is being dissected and mimicked the world over.

  
  Ushahidi – we started small, from Kenya again, and driven by our Crowdmap platform now have over 20,000 deployments of our software around the world. It’s in 132 countries, and the biggest uses of it are in places like Japan, Russia, Mexico and the US.

  
  Mxit – the famous mobile chat software from South Africa has 3x the number of Facebook users in that country, and has over 25 million users globally.

  Like we see at Maker Faire Africa, these innovative solutions are based on needs locally, many of them due to budgetary constraints. Some of them due to cultural idiosyncrasies. Often times, people from the West can’t imagine, nor create, the solutions needed in emerging markets, they don’t have the context and the “mobile first” paradigm isn’t understood.

  A good example of this is Okoa Jihazi, a way to get a small loan of credit for your mobile phone minutes when you’re out of cash to buy them, from the operator. They’ve built some safeguards in to protect against abuse, such as you have to have had the SIM for 6 months in order to get the service. It works though, because the company selling it (and many of the mobile operators do across Africa) understands the nuanced life of Africa.

  We hold on to technology longer, experiment on it, abuse it even. SMS and USSD are great examples of this, while much of the Western world is jumping on the next big technology bandwagon, there are really crazy things coming out in emerging markets, like USSD internet, payment systems, ticketing and more.

  Throughout the world, the basic foundation of any technology success is based on finding a problem, a need, and solving it. This is what we’re doing in Africa. We have different use cases and cultures, which means that there will be many solutions. Some will only be valuable for local needs and won’t scale beyond the country or region. Others will go global. Both solutions are “right”, it’s not a failure to have a product that profitably serves 100,000 people instead of 100 million.

  Turning the world upside down has as much to do with accepting this idea of localized success as an acceptable answer as it does with explosive global growth and massive vertical scale.

  The Two Big Trends

  Trend #1: Adoption by Africans as consumers is increasing.
  Trend #2: Technology costs are decreasing

  Let’s get back to my talk for tomorrow at Nokia… 87% of sub-$100 phones sold by Nokia are sold in emerging markets. 34% of Africa’s population (313 million) are now considered middle class. The fastest growing economy in the world is Ghana, 5 of the top 10 are African countries (including Liberia, Ethiopia, Angola and Mozambique). Across the continent, the average GDP growth is expected to be at 5+% going forward.

  At the same time, we’re seeing bandwidth increase, and bandwidth costs decrease. Mobile operators are the continents major ISPs, and they’re getting creative on their data plans. Handset costs are going down. Smart(er) phones are available for less than ever before. We even have one of the lease expensive Android phones in the world at $80 in Kenya, the IDEOS by Huawei.

  Is it all bright and rosy? Not at all. You’re on the edge, you have to create new markets, not just new businesses. But in that challenge lies opportunity, for it’s from these hard, rough and disruptive spaces that great wealth is grown. If you’re an African entrepreneur, why would you want to be anywhere else?

• PopTech Fellows 2011

  Posted: October 15, 2011, 2:37 am by HASH

  I’m back in one of my favorite places in the US: Camden, Maine. Even on a drizzly, rainy day like today you can enjoy the clean air and colorful fall-colored country around you. It’s a week before the PopTech conference kicks off, where we’ll hear from a number of eclectic speakers and have our minds given a true workout once again. (I am speaking at the conference this year during the “Re:think” session.)

  PopTech Social Innovation Fellows

  With hundreds of applicants from 58 countries, you have to be good to get here. As always, this year of Fellows is impressive and each one has already done something incredible to make it to this stage. We’ve got clean energy entrepreneurs, mini-manufacturing technologists, big data crunchers, girls health innovators and music community engineers. It’s a mess of engaging, driven individuals that remind you why the odd ones in the crowd are the ones that give us hope.

  For the Fellows in the program, this is a chance to learn from some of the foremost experts in the field of communication, design, branding, negotiation, strategy and fundraising. The Fellows each get a chance to do a 5-minute talk on the PopTech main stage. Finally, the network that everyone is injected into gives them an amazing opportunity to connect and meet people that can help them realize their projects goals.

  PopTech does something very interesting, the conference is the big “annual gathering” of the network. It’s full of great talks, as you’d expect, but you’d be wrong if you thought that was the reason PopTech exists. The organization itself is a catalyst, focused on accelerating ideas that can change the world.

  The increased focus of the PopTech leadership on the Social Innovation Fellows, the Science and Policy Fellows and the Accelerator Labs that are put on in cities around the world are proof that their goal is to take all of the energy and resources that a focal point like a conference of their stature brings together, but to then direct that energy like a laser into the people and projects that they think can make a massive impact on the world.

  The Fellows program fits into the PopTech organizations focus on finding people creating Innovative tools that impact positive societal change and then bringing them together with communities of stakeholders and other practitioners.

  Pictures from Day 1

• Manufacturing our Future

  Posted: October 7, 2011, 11:19 am by HASH

  When I was a kid of around 10 years old, I used to collect small motors and electrical components with my school friends in Nairobi. We’d find some batteries and create small rotating and whirling contraptions, dreaming of how we’d one day make a walking robot that we could sit in and control – no doubt inspired by the Star Wars AT-STs.

  I’ve always enjoyed tinkering. It’s what drove my interest in telling the stories of Africa’s innovative hardware hackers in the jua kali sector, writing on AfriGadget. It’s why helping to organize and be a part of Maker Faire Africa has been so much fun for me (which I’m missing, as it’s taking place this weekend in Cairo, due to family reasons). It’s why I buy kids solar and hydraulic kits to build things with my daughters.

  I’ve been buried in the software (web) side of technology for the past few years. In this space it seems like we’ve been happy with de-linking software and hardware, after all, pure internet software is easier to spread, export and get access to. I can’t shake the tinkering side though, knowing that the two sides are interlinked and that more of the bridging of the two is needed. We’re just waiting for the Moore’s Law treadmill to slow down enough for the two to sync up again.

  Firefly Inspirations

  Laura Walker Hudson shares a fascination with the Firefly TV series, which suffered a short-lived life spanning only half a season in 2002. It’s a space western, reminiscent of Star Wars, gritty with witty realistic characters. That’s not why I’m bringing this up though. Laura reminded me of what something that made the show more compelling, the fact that it was a merging of Western and Chinese cultures.

  “…it is a future where the only two surviving superpowers, the United States and China, fused to form the central federal government, called the Alliance, resulting in the fusion of the two cultures…”

  This reminded me of an article I read about the Shanzhai hacking, copying and innovating culture in China.

  The contemporary shanzhai are rebellious, individualistic, underground, and self-empowered innovators. They are rebellious in the sense that the shanzhai are celebrated for their copycat products; they are the producers of the notorious knock-offs of the iPhone and so forth. They individualistic in the sense that they have a visceral dislike for the large companies; many of the shanzhai themselves used to be employees of large companies (both US and Asian) who departed because they were frustrated at the inefficiency of their former employers. They are underground in the sense that once a shanzhai “goes legit” and starts doing business through traditional retail channels, they are no longer considered to be in the fraternity of the shanzai. They are self-empowered in the sense that they are universally tiny operations, bootstrapped on minimal capital, and they run with the attitude of “if you can do it, then I can as well”.

  This sounds like we’re seeing the beginnings of our sci-fi worlds becoming real. Mix this with what you see in other parts of the world with open hacking garages, like what my friend Dominic Muren (TED and PopTech Fellow) is doing with Humblefactory. We’re seeing hardware hacking spaces being set up, allowing small-time inventors to cook up new ideas on machines that they couldn’t afford by themselves. This is a trend that is growing.

  Manufacturing our Future

  Large technology companies drive both the diffusion of technology globally, and the costs of components. As the parts needed to make new tech “things” become commoditized, smaller manufacturers can get them at a low enough price point that they can also create their own inventions and sell them profitably. This is where the Shanzhai story becomes so compelling. We’re able to create more customized, and more innovative products, because they’re not created for a generalized mass market.

  There was an article in the Wall Street Journal recently about small factories taking root in Africa. Most of them don’t have much, or anything, to do with technology creation. However, the story does point out the emergence of more manufacturing happening on the continent.

  It makes me wonder what would happen if we had our own jua kali industry working on higher tech products, like their Shanzhai counterparts in China. What types of innovative technology (hardware and software) would come from Africa that differs for the local context?

  I won’t go into a great amount of detail, on what I’ve written before around the idea of “Hardware Hacking Garages: hardware and accessories innovation” in Africa. I think we need it, as it could help kickstart this next phase of localized R&D, prototyping and ultimately small-scale manufacturing that we need on the continent.

  If we can’t provide a technology manufacturing base of our own in Africa, I’m worried that we’ll forfeit our future in the space. We might not reach the scale of Asia, but we need to have the competency and the capacity to do some of it locally.

  Another way of thinking about this is that the non-traditional businesses in Africa are well positioned to provide a distributed manufacturing base already. Think of it as horizontal scale instead of the vertical scaling you see in massive Asian factories. If there were a way to provide logistical, communications and market efficiencies to that loose and distributed network, then we might find that the foundation is already set.

  Further Reads and Links

  The Space Hackers are Coming! [small PDF]
  The Hackaday blog
  Fundibots – Ugandan-based robot building and training
  The hardware hacker manifesto
  Arduino

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