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