MobileActive.org

Published by the World Association of Newspapers and News Publishers (WAN-IFRA) and the African Media Initiative (AMI), this guidebook aims to help African newspapers implement mobile platforms.

Billed as a guidebook, and not a one-size-fits-all rulebook, the guide aims to help Sub-Saharan African news publishers develop and implement mobile services. The report is based on a series of on-site interviews with newspapers in Uganda, Kenya, and South Africa, including The Observer and the Daily Monitor in Uganda, The Standard and the Daily Nation in Kenya, and Grocott's Mail, Mail & Guardian, Avusa Group, and News24.comin South Africa.

See also this blog post with more information on the guidebook.

Claim Mobile is a platform designed to support a project that subsidizes healthcare by reimbursing health service providers in Uganda for treatment of patients with sexually transmitted infections. As with many development projects, the Uganda Output-Based Aid (OBA) project involves a number of stakeholders: the service providers, the project implementers,the financiers, and the Ugandan government. Design of an appropriate solution requires meeting the various and conflicting requirements of all of these stakeholders. In this paper we detail the rapid design and testing of a pilot implementation of a mobile and web-based system for processing claims forms, based on two prior field visits to Uganda. Based on a comparative device study, semi-structured interviews, health clinic surveys, and a brief deployment, we affirm the selection of the mobile phone as a platform from the health clinic perspective, and further suggest that effective design for development requires more than addressing requirements of the the “users” of the mobile phones but also all the other stakeholders involved, who may have conflicting requirements.

Technology holds many promises as a driver of positive changes, as a tool to address the problems and as an enabler to fulfil the potential. Economic development requires modern technology and technology plays an important role in most strategies for alleviating hunger and poverty. Technology can reduce transaction costs, save lives, facilitate education, strengthen entrepreneurship, provide access to markets and help to deliver basic services, ranging from water and sanitation to public administration. However, the same technology can also be destructive and a cause of problems. Some technological developments can be facilitated or managed, others happen and require an adequate response.

It is this manifold interrelation of technology with its environment that makes exploring the future of technology so interesting and valuable. There is a need to explore how technology in Africa will or might evolve; to discuss the drivers and the obstacles, the issues technology might resolve and the problems it might cause; to identify how technology changes society and how African societies might change global technology. These are big and complex questions and the STT foresight project, which ends with this publication, is a contribution to this discussion that is still in its infancy with respect to Africa.

The report entitled  "Innovative ways of appropriating mobile telephony in Africa" is published by the French Ministry of Foreign and European Affairs and the International Telecommunication Union (ITU).

The democratization of mobile telephony in Africa, its availability, ease of use and, above all, the extent to which it has been appropriated by the public, have made it a major success story. Very low-income populations are not only actively demanding access to mobile telephone services but also innovating by creating the functions and applications they can use. Development is thus happening “from the bottom up” and an entire economy, both formal and informal in nature, has come into being to meet people’s needs. Many different actors – private, public, NGOs – are now mobilized.

Operators and manufacturers have successfully changed their economic model and adapted their products and applications to allow access to services at affordable prices. NGOs have in addition created a range of messaging- based services in different sectors. However, the future evolution of mobile telephony is not clear. A range of different approaches will co-exist, from SMS up to full Internet capacity, including experimental initiatives using smart phones and “netbooks”. Falling costs will lead to an increase in the number of phone devices with data receiving capacity.

Individuals and companies involved in creating services or applications for development will need to take account of their users’ demographics and incomes, as well as the pricing systems of telecommunication companies in countries where they wish to operate. In this, states and regulating authorities have grasped the crucial role which they must play in promoting an investment-friendly environment with the goal of achieving universal access and stimulating innovation – key factors in achieving a “critical mass” of users.

The advent on the African continent of high-capacity links via submarine cables will change the ground rules and force operators to seek new sources of revenue. The inventiveness that has already been evident in mobile voice telephony will be needed once again if the “mobile divide” (in terms of costs, power supply, and so on) is not to widen.

This report takes stock of developments in this sector, which is crucial to Africa’s economic development, and suggests a number of possible directions it might take.

The number of mobile subscribers globally is estimated to have reached four billion in 2008 (ITU, 2008), with mobile penetration reaching 61%. Around 58% of subscribers are in developing countries, and subscriber growth in Africa – more than 50% per year – is the highest in the world. Studies have shown that this rapid increase in mobile penetration has contributed significantly to economic growth. Fuss, Meschi and Waverman (2005) looked at 92 countries, both developed and developing, to estimate the impact of mobile phones on economic growth for the period 1980 to 2003. They found that a 10% difference in mobile penetration levels over the entire sample period implies a 0.6% difference in growth rates between otherwise identical developing nations. The effect of mobiles was twice as large in developing countries as in developed ones (Waverman, 2005).

Mobile phones have brought three kinds of benefits (id21, 2007). First, incremental benefits, improving what people already do – offering them faster and cheaper communication, often substituting for costly and risky journeys. Fishermen in India, for example, can earn more money and waste less fish by phoning coastal markets to see which market has a shortage of supply. Second, transformational benefits that offer something new. Innovative applications, such as m-banking and m-commerce, are bringing banking services to millions for the first time, and enabling people to use mobile phones to pay for goods and services. Third, production benefits that result from the creation of new livelihoods, not only through professional telecommunications jobs but also through activities like re-selling air-time or phone cards. Since the liberalisation of Nigeria’s telecommunications sector in 2000, the industry has become a key source of new jobs in the economy, employing about 5,500 professionals, and responsible, indirectly, for another 450,000 jobs.

The SME sector has an important role to play in the present and future economic development, poverty reduction and employment creation in developing economies (Hallberg, 2000). Stern (2002) stresses that the SME sector is the sector in which most of the world's poor people work. SME sector growth largely exceeds the average economic growth of national economies in many countries and contributes significantly to employment creation. Accordingly, governments and donors alike have recognised the important role of the SME sector for overall development. As a result, many government policies are geared towards supporting their growth through a variety of programmes that range from tax incentives to technical assistance; from regulatory provisions to policy interventions; training and other types of business development services (O'Shea & Stevens, 1998).

Arising from this, one of the key issues is to identify the current information practices and needs, as well as the obstacles that SMEs face in their daily business activities, and to provide guidance in creating relevant policy initiatives that will lead to more economic growth and employment. The SME e-Access and Usage survey was carried out by the Research ICT Africa! (RIA!) network in 14 African countries between the last quarter of 2005 and the first quarter of 2006. Its primary objective is to understand the impact of ICTs on private sector development, and how ICTs can contribute to a vibrant SME sector and economic growth in the context of developing economies.

The countries covered included Botswana, Cameroon, Ethiopia, Ghana, Kenya, Mozambique, Namibia, Nigeria, Rwanda, South Africa, Tanzania, Uganda, Zambia and Zimbabwe. To this end, the SME e-Access and Usage survey was motivated by the lack of clarity about the impact of ICTs on small businesses. The literature to date has failed to create a tight link between the use of ICTs and issues such as profitability and labour productivity. There are so many competing claims against government resources and time that a vague link between ICTs and economic growth and employment creation is not convincing enough evidence for governments to commit their resources. This survey aims to change that perception by providing solid empirical evidence of the link between ICTs and business performance based on firm-level evidence.

A major contribution of this survey to the existing understanding of SMEs in Africa is its use of a formality index to categorise SMEs. Past studies have treated formal, semi-formal and informal businesses uniformly, reducing the applicability of their analysis. A formal business is fundamentally different from an informal business in Africa. A formal business pays its taxes, is more likely to export and often is included in official census of SMEs. In contrast, the primary survival strategy of an informal business is to remain below the radar screen, not to pay taxes and not to form part of any official data. Apart from the obvious survey difficulties this presents, there is a more mundane business difference: informal businesses are also more likely to sell or produce anything that might make money, in contrast to more formal businesses that have a tendency to concentrate on a single product or set of products. The implication of this is that a Cobb-Douglas production function, for example, cannot be used to analyse SMEs, unless there is a declared interest only in formal SMEs.

Of course, suveying only formal businesses would be telling half the story since about two-third of non-resource-driven GDP generation is derived from SMEs, and a large share of that from informal ones. The establishment of the link between ICTs and profitability and labour productivity creates another set of policy imperatives for governments across the continent. ICTs are only useful if they can easily be acquired and used. The key obstacle identified by SMEs towards greater possession and use of ICTs is their cost. The high cost of ICTs in Africa has been attributed to policy choices that have limited competition, and the absence of regulatory capacity to regulate abuse of market dominance in wholesale and retail pricing (Gillwald, 2005 and Gillwald & Esselaar, 2004). This requires greater regulatory capacity, something that is missing from nearly all countries included in the survey. To illustrate this, most governments are exclusively focused on the direct contribution of ICTs towards the economy in terms of profits and staff complements of major telecommunications operators.

However, as this report makes clear, it is the indirect contribution of ICTs towards economic growth that is truly transformative: “ICTs have the largest beneficial impact in conjunction with other changes, including a new set of ICT skills/training, structural changes within business models and the economy, and institutional and regulatory adjustments” (ITU, 2006: 39). This means that ICTs have to be looked at from a perspective that considers all causes of economic growth and attempts to provide a catalytic environment that uses ICTs to generate economic growth rather than the ICT sector's specific contribution towards GDP.

This paper is part of a series that contributes to evidence-based Information Communication Technology (ICT) policy formulation and regulation on the continent by providing decision makers with the information and analysis necessary to assess the regulatory impact and policy outcomes of telecommunications reform against actual sector performance.

It reports on the findings of the second household and individual user survey of access and usage conducted by RIA between 2007 and 2008 across 17 African countries. It builds on the first household survey conducted by RIA in 2004/5 and a number of subsequent supply-side studies that have demonstrated that across the continent, even where there has been overall sector growth, sector performance has been sub-optimal.

For the most part, the primary national policy objectives of delivering affordable access to telecommunications have not been met. What the studies confirm is that mobile telephony is addressing the gap between those who have voice services and those who do not.

However, the divide between those able to access the Internet and the range of enhanced services that have become necessary for effective citizenry and consumer participation, and those not able, has widened. This is not only as a result of limited access but also due to the high cost of communications that not only inhibits access but also constrains individual communication and inflates the input cost to business. This demand-side survey provides insight into the continued marginalisation of large numbers of Africans, even from basic communications services, and confirms the sub-optimal use of communications services due to the high cost of access to services. 

The value attached to accessing and utilising communications is evident in the considerable portion of household income spent on communications and the multiple strategies used by individuals to maintain communication access according to their cash flow and the prices of alternatives. The willingness-to-pay model arising from the survey suggests that relatively small reductions in the cost of equipment and services would result in increased uptake and usage, with a significant growth in revenue for operators.

There is also evidence of considerable pent-up demand in countries such as Côte d’Ivoire, for example, where the amount that those without mobile services would be willing to pay for a handset is roughly the same price as the real cost of a handset.

What these findings indicate is that sector reforms have generally been sub-optimal. The introduction of limited competition particularly in mobile services has indisputably improved access particularly to voice services but insufficient competition or effective price regulation has constrained take-up and usage amongst those who have access to communication services and resulted in high prices.

While the role of the informal sector in promoting economic growth in Africa is increasingly acknowledged, access to capital remains one of the biggest obstacles hindering the development and growth of the sector (Stork & Esselaar, 2006). Africa is struggling with access to formal financial services for its citizens and the informal sector. In addition to the underlying structural limitations of poverty; risk-averse bankers, unsuitable financial products and high bank charges have also been blamed for this state of affairs.

Poor people with irregular income and informal businesses often have no choice but to make use of informal financial services, which are many times more expensive than formal ones. Formal financial services are usually only extended to those with regular income or collateral (Firpo, 2008). Informal businesses also often lack the required accounting skills and systems to generate necessary data to convince a bank to extend loans to them.

Other obstacles include the bureaucratic and educational bottlenecks that prevent many Africans from having identity documents. This fosters corruption around documents such as birth certificates, IDs and passports, increasing the risk for banks in dealing with new customers.

A critical issue to overcome is that of asymmetrical information. Someone without a bank account approaching a bank for a loan is likely to be rejected unless collateral is at hand. The bank has no transaction history for this person or informal business and hence does not know anything about the applicant’s creditworthiness. Transaction patterns can be used to predict whether or not a customer will be able to repay a loan. Absence of a transaction history means that the ability to repay loans is unknown to banks, making it risky for banks to serve such a person unless the loan is fully collateralised.

Few individuals in the informal sector have access to collateral. They either have their own informal small businesses (such as street vendors) or work on an ad hoc basis. Mobile banking (m-banking) can be seen as one solution to these problems. Despite having been around for some time in several African countries, the existing offerings are mostly value-added services – where the mobile phone is a complimentary channel to operating an existing bank account. Such services are not geared towards the inclusion of the poor and unbanked, and while they are growing in popularity, they have yet to shift the access frontier in order to become “transformational” (Porteus, 2007).

To become transformational, m-banking must progress towards bringing more informal businesses and the poor into the formal economy so that they are better able to access micro-loans and other financial services. Transacting on a mobile payment platform can also generate a transaction history that can act as a basis to evaluate creditworthiness. This would address the inadequate access to finance that restricts the entrepreneurial potential of Africa's informal sector and the poor.

This paper seeks to explore how the ubiquitous mobile platform may be leveraged to move beyond simple transactions and provide an alternative banking system that provides access to formal financial services to the unbanked. This can be achieved by using applications that facilitate transactions over mobiles, which go beyond the& usual voice communications, and the money or airtime transfers.

Mobile phones are a crucial mode of communication and welfare enhancement in poor countries, especially those lacking an infrastructure of fixed lines. In recent years much has been written about how mobile telephony in Africa is rapidly reducing the digital divide with developed countries. Yet, when one examines the evidence it is not at all clear what is really happening. In one country, Tanzania, for example, some observers point to the fact that 97% of the population lives under the mobile footprint, while others show that ownership is very limited. These extreme values prompted us to review the situation in Africa as a whole, in an effort to discover what is really going on.

Even though the article is from 2007, the content is still extremely relevant. The authors write: This paper accordingly seeks to clarify the conceptual confusion that underlies the grossly different estimates of the extent to which mobile telephony exists on the continent. To this end we employ a framework that distinguishes between mobile phone subscribers, mobile phone owners, mobile phone users, those who benefit from usage and those who have access to this technology. This classification, we feel, will provide the reader with a better understanding of the state of mobile telephony in Africa and will have important implications for the type of data that are needed, but at present are unavailable. The categories that are identified, moreover, help us better to understand different views as to the extent of the digital divide in mobile phones between Africa and the rest of the world."

The ubiquity of the mobile phone in Africa, the accessibility, the usability and crucially, the
bottom-up nature of its growth, has challenged the traditional ICT for development analysis.
People with very little income are prioritising mobile phones and airtime, clearly convinced of
the value to their lives and livelihoods. People who are traditionally the targets of development
aid are mobilising themselves not only to access mobile phones but innovate new functions
and applications which meet their particular needs.1
But beyond the excitement about the potential for mobile phones some voices of caution are
emerging, highlighting gender differences in access and control, for example, or the tendency
for social and economic hierarchies to be reinforced. There is also recognition that the value of
projects using mobile phones, as with any other ICT, can only be as strong as the quality and
appropriateness of the content shared.
There are several examples of pilots and services using mobiles for development or social
change in Africa, though the group of champions is still fairly small. However, a review of
the literature shows some unique and powerful factors which point to mobiles as a key tool
in enhancing the communication capacity and information access of poor and marginalised
communities across Africa. Most of the projects and pilots that do exist grew out of creative
and innovative processes of matching opportunities to needs, so it seems that an understanding
of what mobiles can do, and a review of the types of support and advice out there for people
wanting to use them, could really enhance planning of all types of development activities and
relationships.
Given this situation, Plan Finland commissioned this research into the potential value of mobile
technologies to the type of child-centred community development work to which they are
committed. While the nature, scope and scale of any work involving mobile technologies
will depend entirely on the context, stakeholders and development objectives, this guide
provides:
• an overview of relevant and innovative examples of how mobile telephones have
been successfully integrated into development projects and processes; and
• a three stage process to help Plan staff and other development practitioners identify
the key social, economic and technical factors and issues they need to consider when
planning to use mobile technologies.
The information provided and analysed here is derived from a literature review and interviews
with people in the field. A list references is provided at the end of this guide. It is hoped that
this blend of examples, learnings and reflections will support Plan’s staff and partners to make
well-informed decisions about integrating mobile technologies into their work.

This report was written by the organization Fahamu in preparation for a workshop to form regional network of activists who use mobile technology in Africa in May 2007. The report looks into the use of mobile technology in Africa by human rights and social justice organizations. The report seeks to establish who is using or developing mobile phone technology in relation to human rights and social justice in Africa. It also provides a background synopsis of mobile phone technology and activism in Africa, an assessment of those who have used mobile phone technology for social activism and/or service delivery and an impression of groups who may be interested in or planning to use mobile phone technology in the future.