Assessing the size and value of investment opportunities with an informal economy footprint
There’s an interesting snippet from the Nigerian news yesterday that led to this framing of a necessary problem statement. KPMG’s head of private equity is quoted as saying: Meeting current needs of the one billion plus population and, the future demands of the rapidly emerging middle class consumers will drive the next wave of Private […]
Can digital currency earn trust in hyper-local rural economies?
One characteristic of rural and informal type micro-economies, is irregular patterns in cash flows and money supply. Mama biashara for instance, finds it hard to replenish stock if business is generally slow within her domain. Even if she could, there is still Mr. boda boda who has to be paid. When he doesn’t get paid, […]
Navigating the African Informal Retail Sector
Nigeria’s consumer market has captured global attention. A significant proportion of this emerging market opportunity is in the FMCG category. Due to historical reasons, 87% of this retail trade happens in the “unorganized” or “informal sector”. The market is highly fragmented and inefficient. Yet due to the nature of the informal economy, most of this […]
RIP Google BebaPay – Requiem for a cashless payment system
Less than a year after going live, Google is closing down the BebaPay smart card which was introduced as an NFC based cashless payment mechanism for Nairobi’s public transport. Last year, I’d analyzed the context and the operating environment in which they’d launched their service, on hearing the news that they’d been struggling to gain […]
Informal trade is big business in Africa
On my way to Nairobi from Singapore a couple of years ago, I had the opportunity to observe first hand the phenomenon of informal trade between China and the African continent. The energy and excitement of the traders, laden with goods on their way back, was a palpable part of the inflight experience. Today, I […]
Prepaid Economy Newsletter: Curated Snippets on Informal, Rural and Prepaid
Welcome! This is the first prototype experimenting with a newsletter format on topics dear to the heart of The Prepaid Economy’s research interests and reader community. Its a special edition looking back at the year. Leave a comment or tweet @prepaid_africa if you’d like to see this become a regular feature. All feedback welcome! Click […]
My 2 shillings worth on the size or value of the emerging African middle classes
There’s been a lot in the news of late about the size and worth of the emerging African middle class subsequent to the release of an as yet unseen report by an economist, Simon Freemantle, at Standard Bank, South Africa. The various headlines conflict each other, some say the middle class isn’t as large as […]
The African Consumer Market: Where the Informal meets the Formal
While still largely based in the informal economy, the African haircare business has become a multi-billion dollar industry that stretches to China and India and has drawn global giants such as L’Oreal and Unilever. ~ Reuters, 6 Aug 2014 This snippet captures what I’d said in my HBR article on the challenge to marketing […]
Human centered design for financial inclusion: Lessons from fieldwork in rural India, The Phillipines and Kenya
Introduction Financial inclusion has become mainstream thinking in economic development. The vast majority of the unbanked live in the developing world, and a significant proportion of this population are rural residents. One can easily surmise, without recourse to statistics, that the bulk of the target audience for institutions seeking to offer them affordable and accessible […]
What is The Prepaid Economy anyway?
Young Kenyan digital currency blogger Michael Kimani has been asking questions on the future of the “Prepaid” economy, given the rapidly evolving financial landscape of his home country. While Twitter might be good enough for a rapid give and take, it’s constrained as a platform for any meaningful dialogue requiring more than 140 characters at […]
