Financial Sustainabilityin ICT4D Initiatives

Linda RaftreePlan International USA

March 12, 2012ICTD 2012, Atlanta, GA

Identification of a real need

• identified by the community• owned by the community• co-created with end users - not designed and

parachuted in from the outside• if benefits not tangible, need buy-in and

awareness, “proof” over long term• if you have to pay people to participate,

you’ve got issues

Where the market doesn’t work

• the market by nature is excluding• giving away free stuff hurts development efforts,

isn’t sustainable• people do have some resources• responsibility is where? livelihood vs education or

healthcare• need to find the balance

Other aspects of sustainability:

• social sustainability -- community ownership and interest, buy-in?

• political – election cycles…• legal – local legal frameworks?• managerial – do you have the right people

managing if it grows/scales?• cost – localization• transparency, accountability, governance

In design, consider:

• client (end user)• context• capacity• culture• connectivity• cost

Remember:

• ICT solutions that save people money and time can be sustainable from within

• don’t suggest ICTs if the problem can be resolved in a cheaper, simpler way without them

• start small with scale and sustainability in mind from the very start

Tension in public/private/non-profit

• telecom and IT companies -bottom line• NGOs - protective of most marginalized • NGO resistance to privatized education and

health• government bureaucracy and self- interest• vastly different approaches, paces,

deliverables, timelines, methodologies

Aid and government ICT4D projects

• “sustainability” “the government will assume responsibility”

• does government even know?• is there enough budget to cover it all?• need for greater aid coordination• consider all aspects of sustainability

Some models

• Pesinet – micro-insurance plan• Young Africa Live – zero-rated service,

reduces telecom churn, but exclusivity…• Mama – freemium with some paid content• Universal Access Fund – Uganda, Peru,

Nepal experiences• Njorku – job search for Africa, seed funded

In summary

• based on a real local need?• challenge: working where market doesn’t work• remember other aspects of sustainability• client, context, capacity, culture, connectivity, cost • private sector vs development sector end goals • public and aid funded projects • consider replication, scale, sustainability from the

very start