mobile cellular phone revolution in africa heloise emdon, february 2010, ottawa
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Mobile Cellular Phone Revolution in Africa
Heloise Emdon, February 2010, Ottawa
History of Acacia
• 1996 – 2001
• Demonstration projects
• Recognition of constraints
• Affordability, Education
• 2001-2006• Focus on policy• Shift towards networks
Acacia I Acacia II
Acacia III• 2006-2011
• Strong networked approach• Increased focus on policy change• Integration ICTs across all sectors
2003-7: CAD10.4m 2006-11: CAD12m
Livelihoods improved
New ICT businesses
Cell phone banking: mPesa model
Client SMS
Agent Cash
mPesaCash form
mPesa admin
Fees & Admin
Safaricom
Profits
M-health
Decisions Support Applications CommCare uses OSS JavaRosa
RIA Household Study n:20 000
ICT Density in 2007
Percentage of Income on Mobiles
10 - 17% of income spent on mobile
compared to OECD averages of around 5%
Mobile pricing
How much did you spend on your fixed line last month (charges and line rental) US$
Research ICT Africa
Mobile Phone users
share of prepaid users
16+ without mobile phone and active sim and willing to pay R58.40 (US$ 5)* or
more
16+ with duplicated sim cards
16+ with mobile phone or active sim
78.6%
17.9%
10.8%
62.1%
Average monthly WTP for mobile expenditure of non-users that would be interested in getting a
mobile phone - R 46.70 (US$ 4.40)*N-households: 20 000
Research ICT Africa
Benchmarking study influence policy
An interconnection research can be imparted to policy makers to improve the day-to-day lives of people, but also that very real regional rivalries can be a trigger for policy change in Africa.
Policy barriers and hindrances in effective telecom regulation
1. Inefficient operators
2. Information asymmetry between regulator and operators
3. Regulatory failure: Dealing with competing interests of consumers and Enterprises investors
Storke and Vetter (2009)
M-banking the Unbanked – RIA study
Research ICT Africa
Comparison of the share of individuals with bank accounts and with mobile phones
Research ICT Africa
Why do you not have a bank account?
Household receiving money from another household
Research ICT Africa
Household sending money to another household
Research ICT Africa
Airtime Transfer
Research ICT Africa
What factors would make you prefer sending or receiving airtime rather than cash or transferring money via banks
Research ICT Africa
Two Modelscash-airtime convertibility and mobile wallets
M-PESA pilot overview 28/09/067
M-PESAACCOUNT MANAGER
Basic principle of operation
Money deposited into the external bank account is mirrored in the M-PESA account
• M-PESA assigns ownership of the value to different customers
• M-PESA moves value between customers in response to sms instructions
BANK ACCOUNT
$1,000
AGENT M-PESAADMIN
SAFARICOM
FinancialInstitution
CLIENT BCLIENT A
$20 $5 $100
$200 $175 $500
YES!Cellular phones meeting needs
BUT!Africa lags behind in more costly
investments in fixed line and broadband infrastructure necessary to improve education, health and enterprise
ICT opportunity Index
The Digital Guide to Digital Opportunities (ORBICOM)
Sub-saharan Undersea Cables in 2011 - maybe (version 18)
Steve Song:
www.manypossibilities,com
http://farm3.static.flickr
.com/2462/3764474517_78d7b452a3.jp
g
Investments planned for backbone
Uganda
Kenya
Tanzania Ethiopia
Burundi Sudan
Research ICT Africa
Fixed Lines
World Growth Reportommit Conclusion
3%-4% of GDP but what was found in the high growth developing countries is that they consistently invested between 5-7% of GDP in infrastructure (amongst which is ICT infrastructure) and education (capabilities) were the countries that demonstrated sustained high growth
