How informal financial services can lower the barriers to formal financial inclusion
Around 2 and a half years ago, I was on a short visit to Abidjan, the capital of Cote D’Ivoire as a guest of the African Development Bank. They were holding an innovation weekend for young women and men in the Francophone West African region who were interested in becoming entrepreneurs. David O. Capo Chichi, […]
Why does the prepaid model work so well and what are the lessons for business model innovation?
Increasingly, employment is becoming ad hoc and flexible. The gig economy and the informal sector share a common characteristic of incomes which are irregular and unpredictable, unlike the timely wages characteristic of formal employment. Both budgeting and planning thus become a challenge when there’s no predictable paycheck to rely on. Expenses are managed against cash […]
Disrupting Predictions: How Stereotypes Distort Expectations
This chart embodies some stereotypical thinking regarding the high growth opportunities now available in low income and lower middle income countries. Its from the just released World Development Report 2019’s concept note on the theme “The Changing Nature of Work”. Where the cognitive dissonance lies is in the accompanying text which highlights the transformational capacity […]
Connectivity, Communication, and Commerce: The 3 Cs of Africa’s Smartphone Led Future
Recent headlines touted the decline in marketshare being seen by smartphones on the African continent, and the concurrent increase in sales of basic devices. Yet a closer look shows that this shift might only be numerical due to the opening of new markets in heavily populated DR Congo and Ethiopia – first time buyers are […]
Lessons for development from the demand driven investment strategies of the informal sector
This shopkeeper in Laare, Kenya provided me with deep insight on how investments in expensive inventory are managed in a heavily cash based economy. He runs a consumer electronics store stocking everything from solar panels, music systems, spare parts and batteries, through to mobile phones and accessories. His purchasing decisions are based on visible consumer […]
East African Imports in rural Rwanda?
This highway ‘storefront’ in rural Rwanda made me wonder if the trader had imported his goods rather than purchased them locally. And, further, if they were imports from Kenya. First, unlike the majority of such roadside shops, he is dealing with multiple products – while all are related to home decor, they are made of […]
Trading economics: a new theoretical system
From the Financial Times, a snippet from a guest post by Wang Zhenying, director-general of the research and statistics department at the PBoC’s Shanghai head office and vice chairman of the Shanghai Financial Studies Association, summarising the arguments in his new Chinese-language textbook on economics. “Trading economics” is one new theory emerging against this backdrop. […]
Household energy consumption behaviour in East Africa: Lighting & Conclusion (3 of 3 Parts)
The following is extracted from a six month study during 2012 on household energy consumption behaviour in rural Kenya and Rwanda among the lower income demographic, that led to an understanding of some of barriers hampering the sales of client’s solar products in this market. This 3rd and final part will focus on fuel […]
Introduction to rural household energy consumption behaviour in East Africa (1 of 3 parts)
The following is extracted from a six month study during 2012 on household energy consumption behaviour in rural Kenya and Rwanda among the lower income demographic, that led to an understanding of some of barriers hampering the sales of client’s solar products in this market. This first part is an overview of household financial management […]
TEDTalk video: Recognizing the value creation and economic contribution of the informal economy
My talk given at the TEDGlobal conference in Arusha, this August, went live on Ted.com at some point during the night a couple of days ago. At that very moment, I was on a Finnair flight from SIN to HEL, so with a wee bit of delay, here’s the link to the video of the […]
