kiwanja.net

This two-page article, published in Microfinance Insights, discusses the use and impact of mobile technology for economic development in sub-Saharan Africa. The author argues that with penetration rates in excess of 30%, and handset sales among the highest in the world, the region is witnessing a new kind of mobile-driven economic development that is making clear positive impacts on people's lives.

The author cites examples of mobile technology being used for a wide range of economic purposes, from farmers accessing local market information - and increasing their income in some cases by up to 40% - to individuals with no bank accounts transferring money to relatives, or making payments for goods and services via their phones. He discusses the growth of a new informal sector based on mobile phones and their accessories, giving examples of market women selling airtime, children selling chargers and phone covers in the streets, street vendors making a living charging people's phones, and mobile phone repair shops. The article states that mobile phones also provide opportunities for microfinance institutions, which are able to use text messaging (SMS) to communicate with customers, collect financial and other data, and conduct surveys. It also allows for improved communication with staff in the field.

The author also notes that the impact of mobile phones is not restricted to economic empowerment, saying that they are also able to provide health information and advice, remind people when to take their medicine, allow citizens to engage more actively with civil society by monitoring elections and helping keep governments accountable, and provide important environmental information.

The article concludes that as more and more people become connected, future studies of sub-Saharan Africa and its economic potential will find it harder to ignore the growing influence of mobile technology and the power of African entrepreneurship - and grassroots organisations - to capitalise on it.

kiwanja.net website on May 12, 2009.