Every week, we read dozens of articles on our favorite industry trends and relate to our investment thesis. We pick the most popular trend from the week and share the top articles along with our thoughts.
It’s the last week of the year, and we are surrounded by reflections on 2011 and resolutions for 2012. Here at Invested Development we have both. Our main ambitions for 2012 are to open our third office in India and test some innovative investment structures tailored especially for the techies in Nairobi. While we are excited about the prospects in India, Africa has made the biggest leaps and grabbed the headlines this year, notably from hopeless to hopeful.
Wrapping up 2011, The Guardian posted several interactive charts highlighting Africa’s development. In addition to pulling World Bank Indicators, the charts also show which other world economies grew at similar rates to the African countries. For example, South Africa and the United States both experienced GDP growth of about 3%. Ethiopia and China both experienced GDP growth of about 10%. Check it out for projected GDP growth in 2012, economic inequality, stats on the growing middle class, and more.
Local Harvard professor Calestous Juma writes in The Guardian on Africa’s transition from hopeless to hopeful. Professor Juma cites the two most important trends to watch are expanded regional markets and “improved strategies to harness the continent’s diasporas as source of technical expertise and business networks.” Initiatives such as the “Cape-to-Cairo grand free trade area” and heavy investment in infrastructure (particularly new fiber-optic cables) will make the continent stronger. Despite the challenges and large capital requirements for development goals, the diaspora and regional integration has the potential to foster sustainable regional growth in 2012.
Looking back on 2011, Mbwana Alliy offers his predictions for Africa in 2012. Originally from Tanzania and currently working in Silicon Valley, his predictions for 2012 are valid and we hope he’s right. Smartphone adoption, the evolution and maturity of mobile money, and mobile commerce are trends that we have watched closely in 2011 and we are confident in continuing to pursue them in 2012. As we are already seed stage, impact-focused technology investors, we do not doubt that many others will be following this trend. Alliy’s predictions are worth the read as they offer valuable and candid insights not found in The Economist or the Guardian.
This is the fourth post in our series, “Leveraging Mobile Penetration at the BoP for Poverty-Fighting Mobile Transaction Systems.” Click the links below to catch up on anything you might have missed.
As we introduced in the first post, the key to a successful mobile technology applications to alleviate poverty is the exchange. In the case of networking and participation, an exchange is the receiving and sending of ideas and opinions and the power to organize or participate in the community.
Mobile phones create powerful social networking opportunities. Mobile applications can offer users the opportunity to leverage their networks for referrals and create opportunities for peer lending. Social networking tools, everything from SMS to Facebook, facilitate organization and participation, as we witnessed during Egypt’s Arab Spring Revolution. Leveraging mobile ubiquity to expand on social capital reaps many benefits for users in a community where communication tools are limited.
The mobile phone with its most basic feature, SMS, promotes impact by creating an exchange. NGOs and governments around the world have used SMS texts to inform and alert populations to serious alerts. For example, FrontlineSMS and Jana (both discussed in this Weekly Review) allow businesses and NGOs alike to communicate with their target market in developing countries. FrontlineSMS prompts consumers to participate and engage through a platform that allows NGOs and businesses to send group texts, asking questions and opinions to a large mobile user base. Similarly, Jana (formerly Txteagle) collects market research data with mobile phones by allowing businesses and NGOs to distribute surveys via SMS with promotional incentives.
Tying It All Together – Mobile Ubiquity and Reducing Poverty
It is clear that mobile phones provide many benefits to users at the base of the pyramid. In the United States we have access to such benefits and resources not only through mobile phones, but by many other mediums. We can network on LinkedIn, search for jobs on Monster, read reviews of local service providers on Yelp!, take surveys to get coupons, borrow from a bank, use and build credit, and transfer money in seconds on our online banking applications. While some may argue that these seem to be simply promoting consumerism, the key point to highlight once more is the exchange. To reiterate Dr. Harish Hande’s philosophy, we must allow the poor to create their own wealth by giving them the tools to do so. With a mobile phone at the fingertips of over 70% of the world and a growing community of social innovators, we can create mobile technologies for sustainable global development.
What other ways can we leverage mobile ubiquity to create poverty-fighting technology?
