Archive for the ‘Senegal’ Category

West Africa’s incipient mobile platform boom will transform the ECOWAS economy

While East Africa has tended to grab the headlines as the mover and shaker in mobile platform innovation, there’s an imminent boom due to emerge in West Africa. The GSMA’s most recent report on the West African mobile ecosystem contains all the signals of this happening within the next 3 or so years.

Even in mobile money solutions, where East Africa has had a headstart (and worldwide fame for M-Pesa), numerous new solutions have been launched in West Africa and subscriber numbers show double digit growth.

In addition, both smartphone penetration (~30% of all subscribers) and internet use are growing as well.

All of this, taken together with the growth of incubators, accelerators and variations of tech hubs to support the startup ecosystem provide evidence of a transformation underway.

Does West Africa have the potential to surpass the success of East Africa? I believe so, given its larger population, greater numbers of dynamic economies from both Francophone and Anglophone regions, and the side effect of years of watching East Africa grab the headlines.

Untapped opportunities in Francophone Africa for design of apps and smartphone solutions

Bacely Yorobi shares challenges at the AfDB Innovation Weekend, Oct 2015 Photo: Niti Bhan

Bacely Yorobi shares his challenges at the AfDB Innovation Weekend, Oct 2015  Photo: Niti Bhan

Bacely Yorubi frames the opportunity space for local app design and development in The Toronto Star:

“Lots of young Africans who’ve studied elsewhere and returned home have expectations of mobile services that don’t yet exist,” said Bacely Yorobi, an app developer from Ivory Coast. “So they’re the ones coding and putting new African-made apps out there.”
[…]
“Africans don’t like to put their money in the bank, but they will put it in their phone,” said Yorobi.
[…]
“We have everything we need to build an app, but we don’t have the support to bring it to market,” said Yorobi, during a trip to Paris to court investors.

I find it all the more interesting from the francophone West African perspective, as the nascent tech industry races to catch up with their anglophone neighbours in Nigeria, Ghana and Kenya. Given the waves being made by world class outfits such as Cameroon’s Kiro’o Games, or Senegal’s rapidly maturing tech ecosystem, one might discover they’ll outpace the competition given time and support.

Bacely’s comments also make me wonder why the global giants pushing financial inclusion in Cote D’Ivoire and other WAEMU countries aren’t looking for local partners and developers, given their ongoing struggles for traction. Perhaps its time to discover that not everything imported from abroad is always the best solution.

Mapping global seasonality: national times of abundance and scarcity?

Connecting some dots made me think of this exercise. If national governments are increasingly looking at ways to bridge the informal economy with the formal, in order to provide more inclusive benefits to their citizens and at the same time there’s an increasing focus on providing inclusive financial services to those outside of the formal economy, then why don’t the overly large global institutions consider mapping national seasonality as a way to track regional abundance and scarcity?

Rather than applying existing metrics which result in a significant portion of the population slipping between the cracks, there is scope to develop measures of assessment where it is known that incomes are irregular, and tend to display seasonal patterns. This mapping need not be too granular in the first instance, even at country level it may be of help as another layer of information over the various surveys conducted.

India, for example, has long known the linkage between the state of her monsoon season and that year’s economic performance, even for organizations and people who are not directly connected to the land and its produce.  Recently, I did something similar for Kenya, mapping the ebb and flow of local income in three different regions and was able to arrive at a rough estimate for a nationwide time of abundance – a peak sales season, if you will.

Highly industrialized nations have detached themselves from the land and the natural seasons, thus the impact of the rains or the dry season on economic activity are barely perceived. In emerging economies and still developing nations where a greater proportion of the population is rural based and food security more vulnerable to weather changes, these elements can influence national GDP or consumer durable sales.

Whether its segmentation of rural markets for companies or policies of financial inclusion on a global scale, I believe this additional layer of information has the potential to provide some crucial nuances to information currently being analyzed, and found wanting.

Senegalese research on innovation processes in their informal ICT sector

I came across some excellent research by Dr Almamy Konte and Mariama Ndong of Senegal. While I’m sure the original working paper in French must be far better than this drafted English translation, their key points are nonetheless something to make us sit up and listen, particularly with regards to innovation in the informal economy.

Research has shown that the informal sector of ICT is a sector that has recently developed (since 2000). This sector has evolved to meet the specific needs of the ICT society. Coping mechanisms in this sector spend by taking into account the social and economic populations.

Taking into account these social realities is the basis innovations noted in the sector. These innovations (social innovation, organizational innovation, and marketing innovation) are a reflection of the Senegalese society and its organization. These innovations are based on values and thus Senegalese distributive logic versus the logic of profit prevails in the capitalist system. ~ from their abstract

They have found that the innovations observed among the informal ICT sector (covering all aspects of information and communication technology such as the repair and repurposing of old equipment, sales of new and refurbished including scratch cards and accessories etc) are those that have emerged in response to cultural and social needs inherent in Senegalese society and many of the core values of the businessmen reflect this localization.

A snippet from page 10:

In Senegal, the informal sector provides enormous potential and capacity for innovation that justifies his place in the Senegalese economy. The emphasis is on using knowledge rather than the production of knowledge. Innovation has always been viewed as a transgressive action individually or in groups to improve unsatisfactory situations, or at least solve problems.

However, innovation is not a simple problem solving but it contains within itself the seeds of creativity and originality, it acts on the margins of freedom of the actors when dealing with operations increasingly demanding control (CROS, 2007, 9). Any characteristic of the informal sector in Senegal who works in the “lack of structure”, but who is under enormous pressure and intense competition in the modern sector.

Innovation is meeting a need (real or potential), a market and workable solutions. It is important to link the needs to the requirements because the informal sector in Senegal follows the demand and adapts itself. It has a great capacity for innovation and responsiveness that the modern sector itself has not.

I have highlighted the sentences that stood out for me – while I had not been able to comprehensively address this topic as well as the authors have managed to do – it was back in the Autumn of 2010 that we’d conducted a field study among the jua kali workers in Kenya to take a closer look at innovation under conditions of scarcity among the informal manufacturers and fabricators based on the same logic.

That here, the informal sector’s responsiveness to customer needs was of a level entirely different to that of the formal industry – that their inventiveness and ingenuity was partly a demonstration of their ability to make and offer for sale exactly what their market wanted. There was little or no scope for errors in an environment of resource scarcity and irregular incomes. Products sold were incomes earned, a direct correlation that Konte and Ndong observed as well:

we try to show that the innovational act in this area is beyond the theories of innovation. Indeed, here the imaginative character of the actor is based on a sense of survival. With a highly developed competition, the human being must be creative and resourceful to get a place in the economic market.

While the PDF as a whole is a treasure trove on the informal ICT sector in Senegal and related literature, this last part from their sampling exercise did also stand out for me. It is the identification of the core values that helped increase their revenues, by the participants of the study, that is the informal ICT business owners:

Social values that contribute most to the increase in turnover of UPI are honesty (Jub ak ngor), courage (Diom), solidarity (ndimbaleunté) and hospitality (téranga). Indeed, the arguments advanced by respondents in the UPI to justify the choice of social values are numerous.

Honesty for these IPU (Informal Production Unit) respondents is the value that leads to success. It helps to establish trust, to secure and retain customers. An insured customer always comes back and you can even get other customers.

Courage is an essential value for a person who seeks a horizon. For them person must be selfless in order to survive in this business. It is not easy to get up early and be present every day for a long duration (12 years for some). Thus, only the courage and perseverance can help them to move forward.

Solidarity for them is a national value, Senegalese, because Senegalese feel affection for helping each other. It serves to reinforce the links in the sense that these UPI are family so everything happens in families. This solidarity is reflected in contributions, loans among themselves and participation in happy events as unfortunate. Furthermore, this solidarity allows IPU meets their limits by complementarily. Solidarity also fixes and maintains customers (make loans). This social value is often instilled in them their religious associations(Dahira).

Hospitality is value of any good Senegalese in their opinion; some of them had to receive it in their career. A welcome to the customer saves his confidence by putting them at ease and that sometimes happens with a smile, buying fruit drinks to customers. Therefore, a client welcomed, always returns.