From Africa 2.0 Series. From Africa 2.0 Series – Project Manager, Saba Kennedy-Washington

According to the current trends, it appears that mobile phones will be the next technological wave in Africa. Currently, because cell phones do not require an internet connection and can use GSM, or Edge to access the internet it is both cost effective and practical to this consumer group. They are easy to carry around and can provide instant access to information. In a continent where it is easier to get mobile phones than it is to build a road, mobile phones allow people to get the information they need before they make a long and sometimes cumbersome trip.

In this, analysis we will examine the many ways that cellphone technology is being used and thus influencing economic development in Africa.

In the October 2007 issue of Forbes Magazine, cell phones were identified as one of the stocks to watch.
It has also been concluded that cell phone use in Africa is growing faster than anywhere else in the world (according to a 2005 study by the Center for Economic Policy Research). The GSM Association states that cell phone use is growing and is now at 60%, with growth potential of more than 85% by the year 2010. In Kenya alone, the number of cell phones has grown from one million to 6.5 million in a five-year period.
One very interesting look at cell phone usage can be seen with fishermen in Lake Tanzania and farmers in Senegal who use their phones to access a trading system that enables them to maximize fish and crop prices. With the current market demand, companies like Vodafone, Entesalat, and China Mobile are beginning to strategically position to meet the growing needs.

The Economist reports that there is a push to create a Pan-African market based on cell phones and notes that TradeNet, based in Accra, Ghana, is putting out a simple E-bay type store of agricultural products across a dozen countries in West Africa. Some companies are offering the prices of agricultural products in real time, which is a real boost to the farmers and a great way to stimulate competitive trade. Another innovative idea is the use of cell phones to send money. A pilot project, M-Pesa, was started in Kenya (M for mobile and Pesa means money in Kiswahili) that allows people to send money to pay for different things. One may also choose to send money to relatives and friends via this process whenever needed and in case of an emergency. Vodafone, which piloted this program, projects that once the feature goes global, it will enable people to send money to their relatives from abroad (BBC) making Africa a liquid economy. MTN, South Africa’s mobile phone giant, signed a deal with Standard Bank to offer MTN banking, a deal that allows customers to open bank accounts with Standard bank, and complete simple transactions. South Africa also has Wizzit which functions much like M-Pesa.

By examining these few examples, we see that the possibilities are endless and the potential huge for the application of cell phone technology in Africa and between it’s Diaspora relatives. As we build on this Africa 2.0 series, we will continue to focus on various sectors of the economy to see how the mobile phone is making a difference.

Authored by :Shirlene Alusa-Brown, a Kenyan born and is a Writer/Blogger, Techie, and Mom-preneur and DIM Corp Partner

This is part of the Africa 2.0 series.

Who can’t remember the image of a sickly African child with flies buzzing around his/her nose while Sally Struthers pleads for television viewers’ help. In the days when citizens only learned about news outside their community through mainstream media channels such as television, radio, and newspapers, that image grew to define the global community’s perception of what Africa and Africans were. But in this age where mobile technology and the Internet easily connect individuals from remote corners of the world, the voices of Africans have created a new image, exposed a new market, and changed the conversations about Africa and what can be referred to as Afri-activism - strategies where a person, group, or company engages Africa through aid and charity.

In today’s digital age access to popular sites like Global Voices Online, Myspace, and Flickr combined with the ease of use of mobile technology have allowed Africans to broadcast their individual experiences worldwide and engage their foreign counterparts in conversations about solving Africa’s societal issues. Tools such as blogs, Skype, and SMS are connecting consumers and accelerating the time it takes to exchange ideas and collaborate with Africans. As more individuals communicate across cultural lines and share experiences, their choices of products and services begin to reflect their new frame of mind, forcing a change in the way companies and organizations do business. For products and programs to maintain their relevance in this new connected age they too must find a way to become part of the conversations that technology has facilitated.

The growing conversations online, and the ongoing popularity of Africa in the media fueled by celebrities such as Oprah Winfrey’s school for girls, George Clooney and Don Cheadale’s campaigns against the continued genocide in Darfur, and the numerous baby adoption stories, continue to push social responsibility as a cultural norm. A recent survey by GMI (Global Market Insite) of more than 15,000 online consumers in the U.S found that Americans place a high value on corporate community involvement. Businesses are now being forced to publicly re-define their social and environmental responsibility programs. Gone are the days when corporations could piece together a social responsibility program without direct engagement on all levels. With increased communication between individuals, consumers are more educated and critical of companies who develop programs and products that are uninspired and disconnected. Today consumers require that businesses become active participants in community conversations both with the consumers themselves and recipients of aid; and as technology allows more Africans to join the conversations, the effects and results of Africa development programs are more transparent. Companies who exhibit a multi-layered social responsibility program today enjoy a strengthened brand image.

The use of technology has encouraged a growth in the number of sustainable African development models and Africans are joining the foray into creating socially responsible products and programs also. Technology has allowed individuals in developing countries to create new business models and take their products global easily. More Africans are flexing their entrepreneurial muscle both at home and abroad. Technology continues to level the playing field for all sizes of for-profit and non-profit efforts, and where African development is concerned, there are many more options to affect change. As the ubiquity of technology continues, we are sure to see social enterprise, Afri-activism, and Africa as a whole reap the benefits of the new conversation age.

G. Kofi Annan is an entrepreneur, strategist and author. He is the principal at Annansi LLC, a boutique consultancy that produces Annansi Chronicles, an African style and business trends blog, and Annansi Clothing Co., an award-nominated Africa-inspired apparel brand. He will be moderating the panel “Africa 2.0: Affecting Change Through Technology” at the 2008 SXSW Interactive Conference and Festival.
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