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Category — Development

Spirituality, being human, and how to change the world.

“Despite all of the ghastliness in the world, human beings are made for goodness. The ones that are held in high regard are not militarily powerful, nor even economically prosperous. They have a commitment to try and make the world a better place”Archbishop Desmond Tutu

I’ve been home for about three weeks since leaving the Unreasonable at Sea ship in India. I spent just over a month helping mentor eleven technology startups which, if that was all I’d done, would have been a fantastic experience. What really stood out for me, though, was the interaction with the hundreds of students aboard, and a stronger sense than ever of how important it is that we encourage, engage, support and mentor the next generation of planetary problem solvers (something I’ve written about before). As if that wasn’t enough, the trip gave me the chance to re-immerse myself in the kinds of environments that were responsible for starting me on my own journey back in 1993. Witnessing suffering and hardship, and countless young children denied a childhood in India, Myanmar and Vietnam, reminds me that there’s still much work to be done.

Spirituality plays a large part in what drives me, and I’ve tried to capture some of this before. It’s not just a subject I find incredibly interesting, but one which puts humanity and purpose back at the centre of development (something which has become increasingly cold and institutionalised). I’ve never thought of helping people as a career. For me it was a way of life, a deeper purpose. So it was a huge honour to be invited to sit on a panel with Archbishop Desmond Tutu to talk about “how we change the world” aboard the MV Explorer. A big thanks to Tori Hogan (who was also on the panel) for inviting me to take part.

I’ve had something of a crazy time over the past few years, finding myself in all sorts of places I felt I had no right to be (National Geographic and No. 10 Downing Street, for example). Having the chance to chat with the Archbishop on a number of occasions during my time aboard the ship is another highlight, and the one hour discussion in front of a packed auditorium was the icing on the cake.

This video is also available (in larger format) on the main kiwanja website, and via Semester at Sea (hosts of the Unreasonable at Sea programme). It can also be downloaded on Vimeo.

Here’s to making the world a better place. For all of us.

April 2, 2013   1 Comment

Time to meet the real M-PESA?

m-Pesa? m-PESA? mPESA? MPESA? mpesa? Putting the actual spelling to one side for a moment, there can be few more talked about yet least understood mobile services than M-PESA (yes, that’s how you’re supposed to spell it. I think). Misunderstanding, misinformation and, in some cases urban myths abound – everything from its roots and implementation to the percentage of Kenyan GDP now passing through the service. Despite this, M-PESA has come to dominate discussions in the ICT4D and m4d communities (despite arguably not being a development tool at all. But that’s another debate).

M-PESA has become so dominant, in fact, that we’re now at the stage that in increasing numbers of meetings, workshops and conferences I attend, any talk of it is banned.

M-PESA is an undeniable Kenyan success story, but not for the reasons many people think. The technology component of M-PESA was developed far away in Cambridge, England (my home town) with UK Government and Vodafone money. M-PESA is not a Kenyan or African innovation if you measure it in technology terms. But technology is often the easy bit, and what does make M-PESA a Kenyan success story is its implementation. Key ingredients like graft, determination, luck, naivety and a receptive population starved of any meaningful access to bank accounts or financial services created a perfect storm for the launch of the service. A storm, let’s remember, which is yet to hit other countries with the same intensity, many of whom have struggled to adopt M-PESA or related platforms as successfully. So far, anyway.

The very idea for M-PESA is also disputed. Despite the technology being developed in the UK, some believe that it was indeed a Kenyan who had the original idea. This “Is M-Pesa really Kenyan or British?” post on humanipo goes into a little further detail. You could argue that none of this really matters, of course. Another debate.

On top of all that, barely a week goes by when my Twitter stream isn’t hit with a claim that 10%, 25% or even 50% of Kenya’s GDP passes through M-PESA. The number – whatever it is – is astonishing. The one I’ve quoted more recently is “50% by the end of 2013″ – heard at a conference in Amsterdam last autumn. I have no idea whether it’s right or not, but going by the percentage range in the tweets very few other people are either.

If, like me, you think it’s time to debunk some of these myths and inaccuracies and get the inside story of how M-PESA came about, then we’re in luck.

A couple of weeks ago Chris Locke, Managing Director of the GSMA Development Fund, gave me a copy of a book I didn’t know existed. “Money, Real Quick: Kenya’s Disruptive Mobile Money Innovation” is a great read if you’re one of the few people new to M-PESA, or you’re one of the majority who thought you knew it. The book covers everything from the seed of the idea, the importance of the human network of M-PESA agents (often forgotten in the technology-dominated discussion), what mobile money means to Kenya’s finance and banking industry, it’s impact, and what the future may look like. The book also touches on innovation more broadly, and how M-PESA speaks of the new-found appetite for innovation in the country.

I’m not sure if this book did come out in 2012 as Amazon claims, but regardless it’s incredibly useful if you think, after six years, it’s time to meet the real M-PESA. If you do you can find it on Amazon here.

January 22, 2013   8 Comments

An inconvenient truth?

Exactly ten years ago this month I was preparing for my first ever piece of work in mobile, two years of work which would lead to the development of an innovative conservation service in 2003 – wildlive! – and the release of one of the earliest reports [PDF] on the application of mobile technology in conservation and development in 2004. A lot has happened since then, not least an explosion in interest, buzz, excitement – and, yes, hype – and a sense that mobile can be the saviour of, well, everything. Back then you’d likely be able to fit everyone working in mobile-for-development (m4d) into a small cafe. Today you’d need at least a football stadium. m4d – and it’s big brother, ICT4D – have become big business.

Not that I needed more proof of mobile’s status at development’s top table, earlier this week I attended Vodafone’s “Mobile for Good” Summit in London. It was a high-profile affair, and an extremely upbeat one at that. I left with mixed feelings about where m4d is headed.

My five takeaways after a day of talks, debates and demonstrations were:

1. Everyone is still excited by the potential of mobile
2. The same projects surface over and over again as proof mobile works
3. Mobile is still largely seen as a solution, not a tool

4. It’s up to the developed world to get mobile working for the poor
5. The top-down mindset is alive and well

Suffice to say, all of these conclusions troubled me as I sat on the train home.

I’ve been thinking for some time about the future of m4d, and how far we’ve got over the past ten years or so. I’ve written frequently about the opportunities mobile technology offers the development community, and my fears that we may end up missing a golden opportunity (see Time to eat our own dog food?” from March 2009). I’ve long been a champion of platforms, and understanding how we might build tools for problem owners to take and deploy on their own terms. Yes, we should provide local entrepreneurs and grassroots non-profits with tools – and where appropriate and requested, expertise – but we shouldn’t develop solutions to problems we don’t understand, we shouldn’t take ownership of a problem that isn’t ours and we certainly shouldn’t build things thousands of miles away and then jump on a plane in search of a home for them.

But this is still, on the whole, what seems to be happening. And this, I’m beginning to believe, is rapidly becoming ICT4D’s “inconvenient truth”.

A fulfilled future for ICT4D (of which m4d is an increasingly dominant part) is not the one I see playing out today. It’s future is not in the hands of western corporates or international NGOs meeting in high-profile gatherings, and it’s not in our education establishments who keep busy training computer scientists and business graduates in the West to fix the problems of ‘others’. The whole development agenda is shifting, and my prediction for the future sees a major disconnect between what ‘we’ think needs to be done, and what those closest to the problems think needs to be done. Call it “disruptive development“, if you like. As I told the Guardian in an interview earlier this month:

The rise of homegrown solutions to development problems will be most crucial in future. That means African software developers increasingly designing and developing solutions to African problems, many of which have previously been tackled by outsiders. This, I think, will be the biggest change in how development is ’done’

I’m not the only person to be saying this. Many good friends working at the intersection of African development and technology have been doing the same for some time. The real change, and the big difference, is that it’s finally happening. A message which was previously given in hope, a message that was previously given out of an inherent belief that there was a better, more respectful and appropriate way of doing things, is now becoming reality. ICT4D is changing, and the balance of power is changing with it.

FrontlineSMS has always spoken to an approach I’ve long believed in, one where users are empowered to develop solutions to their own problems if they so wish. There are many reasons why FrontlineSMS continues to work – the decision of the new Management Team to shift software development to Nairobi is one of the more recent ones. But fundamentally it’s about what the platform does (and doesn’t do) that really resonates with innovators, entrepreneurs, non-profits and problem owners across the developing world. As the Guardian put it in the recent article, “As open-source technology for mobile platforms, innovations like FrontlineSMS are essentially a blank canvas for grassroots organisations to apply to any local context”.

That local context is becoming increasingly vibrant as university students across Africa graduate with Computer Science and Business Management degrees; as innovation hubs spring up across the continent meeting a growing, insatiable demand for places to meet, work and network with like-minded problem solvers and entrepreneurs; and as investors launch funds that show they’re starting to take young African tech startups seriously.

This activity hasn’t escaped big business. Google, IBM, Microsoft, Nokia, Hewlett Packard and Samsung have been opening offices across the continent, snapping up much of the talent in the process (ironically often at the expense – and despair – of locally-based NGOs). But while technology businesses take note and develop local capacity that enables them to develop more appropriate local solutions, the broader development ‘community’ seem trapped in an older mindset of technology transfer.

Technology transfer, of course, is big business – there’s no shortage of donor money out there for projects that seek to implement the latest and greatest proven Western innovations in a development context, and there are countless tens of thousands of jobs that keep the whole machine running. A lot has to change if the development community is to face up to all its new realities, yet it’s looking more likely that the destiny of the discipline lies in the hands of the very people it originally set out to help.

So, if the future of ICT4D is not university students, NGOs or business graduates devising solutions in labs and hubs thousands of miles away from their intended users, what is it?

Well, how about something a little more like this?

It seems rather obvious to put a local technology entrepreneur on a bus and have him chat to a rural farmer, but imagine what might be possible if this approach became the “new ICT4D”, not that the entrepreneur or the farmer would see it as that, or ‘development’ at all. You can see more of the fascinating TV series which linked local technologists to local problems on the TVE website. There’s a lot that’s right with this approach, particularly if you consider what would usually happen (hint: it involves planes).

I’m not usually one for making predictions but it is that time of year, after all, and it is my ten year anniversary in mobile. So here’s a biggie.

Development is changing, powered by accessible and affordable liberating technologies and an emerging army of determined, local talent. A local talent that is gradually acquiring the skills, resources and support it needs to take back ownership of many of its problems – problems it never took original ownership of because those very skills and resources were not available.

Well, now they are. The ICT4D community – education establishments, donors and technologists among them – need to collectively recognise that it needs to ajdust to this new reality, and work with technologists, entrepreneurs and grassroots non-profits across the developing world to accelerate what has become an inevitable shift. Or it can continue as it is, and become increasingly irrelevant. “Innovate or die” doesn’t just apply to the technologies plied by the ICT4D community. It applies to the ICT4D community itself.

[This post was edited down and republished in the Stanford Social Innovation Review in January 2013 here].

December 12, 2012   128 Comments

The innovation conundrum

When I started out trying to understand the complexities of international development well over 15 years ago, one thing struck me. The trick, I was often told, to increase chances of funding was to apply a liberal sprinkling of the words gender, scalable or sustainable into any project proposal. Donors apparently liked those words, however they were used.

I’m beginning to wonder if the same thing is happening today with the word innovation.

For organisations seeking to deploy technologies to put right social wrongs, innovation is the hottest date in town. If the solutions themselves are not described as “innovative” then often the organisations behind them are. Innovation hubs have sprung up across the developed and the developing world, seeking to create the perfect environment for innovation. There are books galore extolling the virtues of innovation in three, four or five steps, or how we might foster cultures of innovation. If only it were that easy.

Over the past few days I’ve read three separate articles, all of which touch on different aspects of the innovation phenomenon. They’re interesting on their own, and collectively, as examples of the various debates currently taking place. As with all things “development” (which is the hat I wear as I write this) there’s as much discussion about what things mean as there is real-world activity.

Harvard Business Review

On the Harvard Business Review blog, good friend Bright Simons focuses on the cost of innovation, and argues that low-GDP countries and smaller businesses are in danger of falling into an “innovation poverty trap” while their richer counterparts ride off into the distance. Cost may indeed be a barrier, but it would be wrong to assume that if we provided every resource you could possibly wish for that people would suddenly become innovative. Money doesn’t make you innovative, although for innovative individuals and companies it arguably helps. Some bigger companies have fallen from their perch at the height of their success, crucially at a time when they had peak resources available to innovate, including money. Take Nokia as a more recent example. (For more on why big companies fail, see the excellent “Innovators Dilemma” by Clayton Christensen).

Stanford Social Innovation Review

In the Fall 2012 volume of the Stanford Social Innovation Review, Christian Seelos and Johanna Mair argue that innovation should not be the holy grail, and that instead “it is time to move from innovation as an ideology to innovation as a process”. In particular, they argue that a relentless focus on innovation as an outcome can undermine an organisation’s appetite for experimentation. This is particularly true when that experimentation may have a high chance of failure:

Although productive innovation does not always translate into desired outcomes or impact, systematic learning and building of a knowledge base about what works and what does not constitutes an important indicator for an organisation’s ability to innovate

Failing to recognise this carries a number of risks:

Glorifying innovation as the solution to social and environmental needs and problems has led to well-intended efforts to increase the population of social innovators and entrepreneurs. This certainly has its merits but it has come with a detriment to investments in established social sector organisations that operate at scale and that create value mainly through incremental improvements

The rampant rate of innovation in the commercial sector has provided risk and opportunity in equal measure for the non-profit world. The ICT4D toolbox is a lot bigger than it was two or three years ago, but as I like to point out in my numerous talks on appropriate technology, many of these new tools don’t yet work in the places where the need is greatest. Donors sometimes fuel the frenzy by their willingness to fund the next big thing, leaving us with ‘innovative’ projects such as “iPads for Africa” (this is one I made up a couple of years ago, but it may now exist in some form). Although these projects may look great in the glossy pages of an annual report, and sound incredibly disruptive, they look less compelling on the ground (where they largely fail).

Organisational Capacity to Innovate

The Rockefeller Foundation recently launched organizational capacity to innovate, a new website based on the findings of ”Learning from Experimentation: Sustaining Innovation to Achieve Impact” (available as a PDF here). They focus on the importance of seeing social innovation as an outcome rather than a tool, and an ongoing process rather than a single moment of inspiration. Two organisations are used as case studies in the report – our very own FrontlineSMS, and Circle of Blue - both seen as good examples of building capacity for continuous innovation through experimentation. The report is particularly interesting because it covers organisational innovation as much as technological innovation. As I’ve written before, organisations themselves need to innovate (business models, organisational structures, funding, leadership, messaging, and so on).

Creative Advantage list over a dozen definitions of “innovation” on their website, and therein lies the problem. We need to be careful we don’t overuse the term to the point of it becoming meaningless, and that when we do we’re clear about what kind of innovation we’re talking about.

Further reading
Since drafting this post, the Stuff Expat Aid Workers Like blog has published a more critical, tongue-in-cheek critique of the development community’s emerging obsession with innovation. You can read their “#182 Innovation Tourette’s” post here.

November 25, 2012   71 Comments

Social innovation and the art of reinvention

Big companies are on the move.

Within the next few weeks Microsoft will officially launch Windows 8. Their flagship operating system has undergone a complete redesign on a scale not seen since Windows 95. Myspace are going through a vigorous rebranding exercise ahead of a major relaunch. And Nokia are feeling the pain as they work through a huge shift in their approach to the smart phone market. Three different organisations. Three different challenges. One thing in common.

Windows 8 is Microsoft‘s response to the growing threat of the smartphone and tablet, two high-growth markets where they’re not yet major players.

Myspace are attempting a fight back for fourth time as their value and online membership continue to lose ground on the Facebook’s of this world.

And Nokia, like many device manufacturers, got totally caught out by the iPhone which did, in fact, change everything. As market leaders they had furthest to fall. The rest is history.

Three companies, three challenges, all responses to external market pressures. In a sense, you might argue that the ultimate destiny of these companies is no longer in their hands. Out of the three, Microsoft are best placed in that they’re responding at a time they’re still relatively dominant. It’s the opposite for Myspace and Nokia, who in reality are on the slide and attempting to fight back from much weaker positions. If either gets their new strategy wrong, it could be curtains.

Today, Apple are riding high and can do no wrong. But they’d be the first to admit that they’re in a precarious position – they, after all, have it all to lose. Despite the rhetoric, we’re yet to see a true iPhone killer, but there will be one. And Apple need to make sure it’s them who build it. Apple, in a sense, have to kill their own product if they’re to succeed in an increasingly competitive future.

This kind of “inward reinvention” is not so common in the ICT4D world. Solutions come and go, pilot projects come and go, some organisations even come and go. The vast majority of the changes we see are driven by one single external factor – technological innovation. Think of all the new projects and organisations that have come about as a result of the growth of smart phones in emerging markets. And think of all the new ones that will exist when tablet computers, or 4G, become ubiquitous.

Once they’re up-and-running, few ICT4D-focused organisations undergo radical changes in their approaches or technologies, instead focusing on incremental upgrades to policies and technologies. Some of those are voluntary, but many are forced by new entrants into the market, new technologies, or some kind of paradigm shift. It’s those that strike first – adapting their approaches and offerings before change is forced upon them – that will survive in an increasingly competitive world. And, yes – developing solutions to the world’s social and environmental ills is a competitive industry.

Although technology-focused non-profits don’t face the same problems as their commercial counterparts, this doesn’t mean they shouldn’t regularly rethink their strategy, their brand, their leadership or their technology solutions. If they’re to succeed in the longer term they need to be the ones in the driving seat, not the ones simply responding to external pressures or developments. ICT4D as a sector is still relatively new in the grand scheme of things, and as things hot up – as they will – increasing numbers of organisations will end up calling it a day. Fortune will favour the brave.

Many find themselves under pressure in a few key areas:

Increasing competition for funding. The number of technology-focused social enterprises is rising at a higher rate than available funding, putting a squeeze on donors. Social enterprises responding with hybrid models – allowing them to raise investment as well as donations – will stand a better chance in this brave new world, as will those who master the emerging crowd funding phenomenon.

The democratisation of development. As I wrote in a recent BBC Future article, the spread of the Internet and mobile phones means there are likely more people working on solving social and environmental problems in the world today than ever before in human history. There’s a lot of competition out there, and a lot is coming from garden sheds, bedrooms and kitchen tables.

The rise of local innovation hubs. For quite some time there’s been general agreement that the best people to solve developing world problems are people in the developing world. I’ve always maintained that the greater the distance between a problem and the problem solver, the less likely the chance of success. The rise of local innovation hubs around the world – Africa in particular – means that not only is that distance shrinking, it’s nurturing entirely new industries in developing countries.

An increasing focus on emerging markets from large companies. Non-profits have historically only had to compete with other non-profits, but that’s no longer the case. Designing (mobile) applications for the next billion, or the bottom of the pyramid, or the other 90% – whatever you choose to call it – is big business. IBM’s announcement earlier this month that their next research centre will be based in Nairobi – their first in Africa – is further proof. According to IBM, “We want to help train Africans to innovate in Africa. The best minds there should be working on big national problems and African problems”. Google, Microsoft, Nokia, Hewlett Packard and Samsung – among others – have set up shop there, too.

In a couple of months time I’ll be celebrating my tenth year in mobiles-for-development. I’ve been incredibly lucky to have been there from almost the beginning, and I’ve seen first-hand the growth of the discipline and the impact of the technology on communities across Africa. The next ten years will present a whole new set of challenges for our sector, and if many ICT4D-focused organisations are going to survive they’re going to need to work very hard – and be very brave – to stay one step ahead of the game.

Something Myspace, Nokia (and Blackberry, come to think of it) – with all their resources – failed to do.

September 26, 2012   24 Comments

Technology and the democratisation of development

I was recently invited to contribute an article to BBC Future‘s A Matter of Life and Tech, a series which features a “range of voices from people helping to build Africa’s tech future”. In the article, I argue that technology has become a vital tool in the fight against poverty, allowing people to participate in development in ways never previously possible. The original article is not available in the UK due to licensing restrictions.

Twenty years ago, if you were information technology-literate and interested in international development, your options were limited.

That’s how things were for me when, in 1993, armed with ten years programming and networking experience I began turning my attention to the developing world.

My efforts didn’t get me far. The information technology revolution we see today had barely started at home, let alone in many of the developing nations. If you weren’t an English teacher, a doctor, a policy maker, an economist or a dam builder, careers in development seemed somewhat limited.

How things have changed. Driven largely by the spread of the world wide web and the burgeoning mobile phone sector, opportunities to develop solutions to many of the world’s social and environmental problems have reached almost every bedroom and garden shed in the land.

The irony today is that arguably the greatest developmental tool we have in our hands isn’t a product of the tens of billons of developmental aid spent over the years, but a by-product of private sector investment. Putting the debate around costs and coverage to one side, the development sector has a lot to thank the mobile industry for.

In 1993 the number of mobile subscribers in Africa numbered in the hundreds of thousands. By 1998 that had crept to four million. Today there are an estimated 735 million with penetration running at around the 70% mark. Not bad in less than 20 years.

Everyday innovation

The result of this growth is that many Africans now experience their first phone call on a mobile, and their first experience of the world wide web comes on the same small screen. And it’s been that way for a while. Mobile phones are to most Africans what our laptops, tablet computers and landlines are to us, combined.

They’re also their banks. Today, as they pay bills and transfer money to friends and family with the press of a few key strokes, tens of millions of Africans will be doing something  most of us in the west  can only dream of.

But this rise in mobile phone ownership, and the slower but still significant rise in access to the internet, doesn’t just represent a significant business opportunity. A few short years ago, non-profit organisations working on the ground suddenly found themselves with a new tool in their fight against poverty.

Mobile phone ownership among the communities many of them serve presents new opportunities to increase the reach and efficiency of their work. Simply being able to send messages to coordinate meetings, or to remind people of key messages, can save hours – even days – on the road.

Community healthcare workers can also stay in better touch with the hospital when they’re back in their villages. Farmers can access advice and market information directly from their fields. Citizens can report corruption, or engage in debate. Births can be registered. Illegal logging can be recorded and reported. It’s safe to say that mobile phones have touched every sector of development in one way or another. It has become so ubiquitous that, in just a few short years, many development workers can hardly imagine life without them.

The beauty of mobile technology is that, unlike larger development efforts, it doesn’t discriminate against the smaller, grassroots organisations. As we’ve found with the countless number of FrontlineSMS users over the years, if you give people the right tools and conditions to work in they’re capable of innovating as well as anyone. Some of the most exciting technology-based development work going in Africa today is African. Barriers to entry are as low as they’ve ever been.

This “democratisation of development” isn’t just taking place in cities, towns and villages across Africa. With the internet as the distribution mechanism, and the mobile phone as the target device, anyone anywhere can today build a tool and make it available to a global audience with the minimum of funding and the minimum of effort. This is exactly how FrontlineSMS came about almost seven years ago.

‘Extreme affordability’

How to go about developing the right tools is, of course, an ongoing debate but at least the phones are in the hands of the end users, and by-and-large the delivery mechanism is in place. The next stage of the communications revolution will come in the shape of smart phones, presenting yet more opportunity. What we see happening today is exciting, but we haven’t seen anything yet.

Prestigious universities and colleges around the world now devote entire courses to technology-for-development, many wrapped up with subjects such as design and entrepreneurship. Stanford University helps “design for extreme affordability”, while MIT initiatives aim to “educate students in science and technology that will best serve the world in the 21st century”.

There are likely more people working on solving social and environmental problems in the world today than ever before in human history.

Since starting out working with mobiles almost ten years ago, I’ve seen at first hand this shift in focus. Designing mobile applications for the next billion, or the bottom of the pyramid, or the other 90% – whatever you choose to call it – is now big business. You only have to look at cites like Nairobi, where companies like Google, IBM, Microsoft, Nokia, Hewlett Packard and Samsung have set up shop.

Their mission, in many cases, is to help to get the best African minds thinking about African problems. Clearly, if this trend continues then Africans are less likely to be left behind in designing solutions for their own continent than they were before. It would be hard for anyone to argue that this is not a positive step.

At the same time as this influx of big business, there are increasing numbers of homegrown initiatives. Innovation and technology labs have been springing up over the continent for at least the last three years. According to Erik Hersman, Founder of the iHub, there are now more than 50 tech hubs, labs, incubators and accelerators in Africa, covering more than 20 countries. Mobile phones will be at the centre of the majority of solutions their tenants develop.

I’ve always maintained that one of the best things about the use of mobile phones as a development tool is that it was never planned. The development sector has shown that, historically, it’s not been overly successful at delivering on those.

Instead, anyone anywhere with an internet connection and a software development kit can help tackle some of the bigger problems of our time. What we are witnessing is the democratisation of development.

Today, you don’t need to be a doctor, teacher, economist or dam builder to make a positive impact on your – or any other – country’s development. And that can only be a good thing.

September 11, 2012   20 Comments

Indigenous and ingenious: The roots of mobile banking in Africa

In Ghana, it’s popularly known as susu. In Cameroon, tontines or chilembe. And in South Africa, stokfel. Today, you’d most likely call it plain-old microfinance, the nearest term we have for it. Age-old indigenous credit schemes have run perfectly well without much outside intervention for generations. Although, in our excitement to implement new technologies and solutions, we sometimes fail to recognise them. Innovations such as mobile banking – great as they may be – are hailed as revolutionary without much consideration for what may have come before, or who the original innovators may have been.

The image of traditional African societies as predominantly “simple hunter-gatherer” is more myth than truth. The belief that Africa had little by way of economic institutions and processes before the arrival of the Europeans is another. As Niti Bhan pointed out during a fascinating “Life is Hard” presentation at the Better World By Design Conference a couple of years ago, many rural communities today are familiar with concepts such as loans, barter, swap, trade, credit and interest rates, yet the majority remain excluded from the mainstream modern banking system and have never heard of things like ATMs, banks, mortgages or credit cards. It’s not that people don’t understand banking concepts – it’s just that, for them, things go by a different name.

In Kenya, as few as one in 10 people may have a bank account, but that doesn’t stop many of them from using a number of trading instruments or running successful businesses. Technology can certainly help strengthen traditional trading practices, and we know this because when technology is made available, the users are often the first to figure out how to best make it work for them. Mobile technology is today showcasing African grassroots innovation at its finest.

Africans are not the passive recipients of technology many people seem to think they are. Indeed, some of the more exciting and innovative mobile services around today have emerged as a result of ingenious indigenous use of the technology. Services such as “Call Me” – where customers on many African networks can send a fixed number of free messages per day when they’re out of credit requesting someone to call them – came about as a result of people ”flashing” or “beeping“ their friends (in other words, calling their phones and hanging up to indicate that they wanted to talk). A lot of interesting research on this phenomenon has been carried out by Jonathan Donner, an anthropologist working at Microsoft Research. Today’s more formal and official “Call Me”-style services have come about as a direct result of this entrepreneurial behavior.

The concept of mobile payments did, too.

Researchers have for some time been observing the behavior of users in developing countries, seeking to identify the next big thing. As Jo Best recently put it, many of these ideas spring from “the fertile mind of some user who wanted to do something with a mobile that their operator hadn’t provided yet.”

Tapping into these fertile minds is a fascinating business, something that Jan Chipchase (formerly of Nokia, now with Frog Design) is famous for. Some of Jan’s earlier observations identified emerging mobile payment-style services long before the mobile operators, or even the ICT4D community, had even thought of them. The mantra “build it and they will come” seems alive and well in the African mobile context.

Whilst many traditional development approaches generally introduce alien ideologies and concepts into developing countries – sometimes for the better, often for the worst – today’s emerging mobile services are very much based on a model of indigenous innovation. Take M-Pesa, the much-touted Kenyan mobile money transfer service developed by Vodafone and the U.K. Department for International Development, as an example. Increasing numbers of African users were already carrying out their own form of money transfers through their mobiles long before any official service came into being. SENTE, from Uganda, is one of the better known indigenous systems (M-Sente is now the name of Uganda Telecom’s official mobile money service).

What M-Pesa has done is formalise and scale this kind of activity and bring it fully to market. Its impact has been spectacular, with around 17 million subscribers now using the service, and 50% of Kenya’s entire GDP expected to pass through the platform over the next twelve months. But what services such as these, rolling out in increasing numbers of African countries, have done to earlier “indigenous” systems – mobile-based, such as SENTE, or more traditional microfinance solutions, such as susu, tontines or chilembe – is not so clear, although the latter were most likely well on the decline long before mobile phones came on the scene.

Many indigenous economic systems still exist today where they haven’t been wholly replaced by modern financial structures or technologies. In “Africa Unchained,” George Ayittey states his belief that future African economic prosperity lies in traditional systems and practices:

“Women traders can still be found at most markets in Africa. They still trade their wares for profit. And in virtually all traditional markets today, bargaining over prices is still the norm — an ancient tradition. Traditional African chiefs do not fix prices. And it is this indigenous economic system, characterised by free village markets, free trade and free enterprise that Africa must turn to for its economic rejuvenation.”

It’s likely that many people would argue strongly against Ayittey on this, believing that progress across the African continent is based on embracing change and the new world economic and technological order. It’s an active and fascinating debate. Whichever side of the fence you’re on, all of this does raise one important question.

Should technology solutions aimed at the developing world, and mobile solutions in particular, seek to build on and enhance indigenous, traditional activities – economic or otherwise – or, where necessary, is it okay just to replace and lose them?

That isn’t the only question, either. How does the introduction of emerging mobile services shift the balance of power in traditional African societies? Will women, for example, remain as economically active participants in the new mobile-powered world, or will men take more control? Do mobiles narrow or widen gender inequalities? Is technology exacerbating the gap between the haves and have-nots, or is it truly proving as transformational as we all believe or hope?

Very few businesses would willingly throw out all of their processes and procedures in order to implement a new IT system, however good it may be. The more astute ICT solutions providers know this and, wherever possible, aim to allow seamless integration of any new technology into their clients’ workplaces and working practices. Doesn’t it make sense that we should take the same approach with indigenous societies and seek to build on existing procedures and traditions, and not just assume that a new, modern solution is better and replace everything that went before?

It’s a fine balancing act and one people are still trying to figure out. The irony could be that while growing numbers of social scientists are turning to technology to help preserve and document disappearing cultures, the same technologies may be contributing to their ultimate decline.

September 3, 2012   240 Comments

In search of an ICT4D mantra

In many sectors of international development it’s hard to imagine how you’d have much impact if you weren’t out in the field. After all, teachers want to be in-class. Doctors want to be in-clinic. And conservationists want to be in-situ. There’s only so much any of them can do when they’re not. Getting ‘stuck in’ is largely what it’s all about.

So why are so many ICT4D professionals happy to work remotely? And why does much of the ICT4D sector not find that odd?

In an article due to be published this week on BBC Future, I write about how technology has ‘democratised development’ and that there are “likely more people working on solving social and environmental problems in the world today than ever before in human history”. The spread of mobile technology and the Internet has made all of this possible. These are exciting times, make no mistake.

But  just because these tech-based opportunities have literally come to us in the comfort of our own homes, we mustn’t kid ourselves into believing that we don’t need to make any effort to lay the groundwork to our apps and ideas by getting out and spending time in the field. Just because the very technologies we use, by their very nature, allow us to work at-a-distance – remotely – that doesn’t mean we have to. If that doctor, or teacher, or conservationist could do their work without stepping into that Malawian clinic, or Lusaka classroom or Namibian national park, would they? I doubt it.

Last night I caught sight of a tweet from Tony Roberts. Although it sounds like something an anthropologist (or philosopher) might say, it perfectly describes an approach the ICT4D sector might like to adopt.

The beauty of the Internet, and the spread of mobile technology, is that anyone anywhere can quickly develop and distribute a mobile-based solution to a social or environmental problem, and start picking up users immediately. The technology is in place, and the distribution channel is there. All that’s needed are good, solid ideas and a drive and passion to fix a problem somewhere – and, let’s face it, there are plenty of those. All-in-all, the barriers to entry are lower than they’ve ever been.

But they’re so low we end up with a different problem.

For the doctor, teacher or conservationist, understanding the context of their patient, student or endangered species is critical for the work they do if they’re to do it well. With few exceptions, they can only get that by spending time in the field. This isn’t perceived to be the case for a programmer or coder. The result? A majority of apps written in isolation which have little chance of success.

Maybe that doesn’t matter. With the barriers to entry so low the cost of building and distributing these apps is minimal. The fact that so many people are taking an interest in fixing things should be encouraging enough. But there’s no doubt that spending time with your users, understanding their context, discussing what they need and then building a tool based on all of those things gives you the greatest chance of success.

Further reading
Social mobile: Myths and misconceptions
Mobile applications development: Observations
Rethinking Schumacher.

August 27, 2012   53 Comments

In numbers: A decade of mobile

January 2013 will be my ten year anniversary in “mobiles for development”. To say a lot has changed is something of an understatement. Back in those early pre-m4d-community days I would often get asked “Do they have mobile phone networks in Africa?”, or “How do people in Africa afford phones?”, or “Why are you wasting your time looking at the use of mobile phones in development?”.

Silly questions today, but not so silly back then, perhaps. Mobile phone ownership and penetration were largely in their infancy, and I only began looking at the conservation and development potential of this ‘emerging’ technology thanks to the incredible vision of a team at Fauna & Flora International in Cambridge, UK. A year after we started work we’d not only developed a groundbreaking project – wildlive! – but pulled together what was likely the first comprehensive report on the development potential of mobile phones. With so little actual data to go on, most of our research was based on anecdotal evidence. Ironically, solid data – even ten years on – is still a little tricky to come by.

(The full report is available in the kiwanja Mobile Database here).

Over the past nine years the conversation – and the technology – have moved on considerably, and today few people would argue that mobiles have had a transformative effect in the developing world. Quite where things are headed is a little unclear, but infographics such as this two-pager from the World Bank can help remind us how far we’ve come, and how exciting this sector is to work in.

Click for a larger (readable) version of page one here and page two here.

I would say “Here’s to the next ten years”, but with the pace of change we’ve seen so far we’re probably best not looking that far ahead.

July 30, 2012   128 Comments

Closing mobile’s data divide

Good mobile data is hard to come by. Much is either speculative, out of date or – if based on more recent research – expensive. And what is freely available is often spread far and wide across the Web. If you’re into mobiles for development then today your life is set to become a lot easier with the launch of “Mobile and Development Intelligence” (MDI), a new open data platform from the GSM Association which aims to “educate and unite all who want to harness the power of mobile for good”.

A key objective of MDI is to help increase investment and activity in the mobile for development field, and in turn amplify the social, economic and environmental benefits the technology can bring. That positive impact has already touched a wide range of development sectors from education and health to financial services, government transparency and democracy, and agriculture. With mobile phones now in the hands of the very people the development community have historically tried to help – billions of them, and counting – exciting new opportunities have emerged. According to the GSMA:

The mobile phone’s ubiquity is uniquely well-placed to drive economic and social development in emerging markets. Investments in the mobile and development sectors are rising yet there is limited data on which to base these decisions. MDI is designed to bridge this information gap.

These gaps include:

  • The lack of data for business cases, product strategies and programmes
  • Limited visibility of organisations and communities
  • Limited understanding of the impact of mobiles on development
  • Fragmentation of platforms and limited cross-sector convergence

In line with these challenges, MDI aims to provide:

A freely accessible, online repository of data and analysis
MDI will aggregate, cleanse and categorise data from multiple internal and external sources into a single, centralised data repository. Users will have the ability to manipulate, visualise and export the datasets (below: the ratio of total mobile connections to total population, 2009-2011).

Visibility of organisations, products and services and community
MDI will provide an online directory where users can access information about organisations and their products, services and initiatives. It will provide the “who, what, where and how”.

Clarify the impact of mobile on development
Develop impact pathways for each specific sector to find and map evidence of socio-economic benefit, and host impact metrics from other GSMA departments e.g. the impact of mobile on GDP.

Thought leadership on technology convergence
Working outwards from user needs to design common platforms to deliver them.

Future functionality will include an investor hub, document repository, online community and coverage maps making MDI a one-stop shop for NGOs, international NGOs, government departments and the private sector interested in leveraging the power of mobile technology for development.

You can visit the MDI site here.

Congratulations to the GSMA team, partners ThoughtWorks and PwC, and investor the Omidyar Network.

June 13, 2012   116 Comments