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, […]
Context Sensitive Law: What happens when African societal norms meet modern commercial practice?
In short, social forces shape contracts: the stronger the sense of community, the more effective these sanctions are likely to be. The result: A privately ordered system of business behaviour, which exists without reference to the governing law of the state. The underlying adhesive: community. In the absence of conventional forms of collateral, my contract […]
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 […]
The African Informal Sector: GDP Contribution vs Scale of Human Impact
The informal economy in sub Saharan Africa (SSA) tends to be measured as a share of GDP, counting its contribution to the national economy. By this metric, Nigeria has the most economically empowered informal sector, contributing over 60% to the GDP. On the other extreme, South Africa, has one of the smallest contributions to the […]
Mobile First Africa: Social Media’s Boost to Rural Productivity in Kenya
Now in business for just six months, he also uses social media pages to sell his products, improving his customer reach. “Through Facebook posts I receive enquiries and orders from Kenyans in the diaspora living in the US, South Korea, South Sudan, UK, Switzerland and Botswana who want the splits to be delivered to their […]
The Resilience of Innovation under Conditions of Scarcity
Innovating beyond the traditional tin lantern – a simple wick attached to the can – Kouassi Bafounga cuts shapes from tin cans and fixes them together with glass, string and a little petrol to produce storm-proof lanterns. Last year, Bafounga was one of 11 winners in a “Fab Lab” innovation competition run by the French […]
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 […]
Elements of Handpainted Graphic Design and Signage
The first time I went to Africa, my research companion, a South African designer, very apologetically mentioned the use of handwritten signage in his country. We were there on behalf of Samsung, and our global design research team included members from Seoul, Singapore, and Pretoria. “Its all rather primitive over here” he said, but I […]
Why the African Consumer Market is NOT the same as the African Middle Class
The biggest challenge faced by consumer facing companies looking at the African Consumer Market is the age old positioning of the “middle class” as the ideal target audience. This middle class is segmented by the same attributes as the original middle classes who formed the consumer markets of the developed world. This is the outside […]
