Posts filed under ‘Africa’
By: Abhishesh Adhikari
One of the Kiva partner MFIs that I am helping in Uganda is Micro Credit for Development and Transformation (MCDT.) It is based in Kampala and provides financial services primarily to low-income women who come to Kampala from remote areas of Uganda. Even though the average loan size for a borrower at MCDT is only about $200, it is amazing how impactful the loans have been in helping these women become financially independent.
There is no shortage of articles documenting Africa’s position on the cusp of global development, with Kenya as a particular harbinger of those expectations. The Economist has reneged on writing off Africa as a “Hopeless Continent” several times since it featured the headline a decade ago. In 2011 it published “Africa Rising,” in which it identified 6 of the fastest growing countries in the world as African, with GDP growth surpassing East Asia. Last August, it dubbed Kenya Africa’s “Silicon Savannah,” bringing an onslaught of attention to the burgeoning technology scene here. Its March 2nd issue includes the article “Aspiring Africa,” that describes the continent as the fastest growing in the world.
The fan fare around African growth is not limited to sporadic shout outs from The Economist. Recently, Johnathon Kalan of the Huffington Post published an article that describes the fusion of “Potential, Poverty, Politics and Parties” that draws American college graduates to social enterprise start-ups in Nairobi. More important, however, is the current generation of young, educated Kenyans who are tired of the status quo. They feel entitled to jobs and livelihoods that are fulfilling and afford them some degree of social mobility. They are joined by Kenyans abroad, some of whom have been away for a decade at least, pursuing degrees and jobs, who are now choosing to return to Kenya for opportunities that did not exist when they emigrated. Together, these young professionals understand the role Kenya can play in spearheading growth for the entire continent. They are prepared to role back their sleeves and play a role.
As much chatter as there is surrounding Kenya’s burgeoning technology scene, most articles stop short of explaining why it’s happening in Kenya and why it’s happening now. This week, I’m digging a little deeper into the context behind the phenomenon.
Until rapid urbanization began after independence, Kenya’s population was predominantly rural. In 1963, only 8% of the population lived in ‘towns’ or cities. Nairobi’s population was 267,000 and Mombasa’s was 180,000. Of those ‘townspeople,’ most were Arab, Indians and Europeans; not Africans, who typically worked in town for short or long periods, then returned to their rural homesteads where their families remained. Today, Nairobi’s population has grown to approximately 3 million people.
Although people are flocking to cities, their ties to the countryside are still strong. Often, one or a few family members migrate to cities and the rest of the family stays behind. A taxi driver I’ve used frequently is from the Naivasha area in Rift Valley. His wife and children remain in the country side, where he farms fruits and vegetables to sell at Nairobi bound markets. During the week, he leaves his family behind and comes to Nairobi to drive a taxi. This is a common arrangement in Kenya; city work during the week and village life on the weekends.
The movement from rural to urban by one or a few family members created the need for domestic remittance transfers. Family members are making money in the cities and need a way to send it back home. In other countries, like Mexico, where many family members work abroad, the opposite is true, the demand for external remittance flows are greater. Hence, Kenya’s unique rural-urban dichotomy set the stage for the internal funds transfer explosion that we’re amidst now. Once cheap mobile phones flooded the market, Safaricom filled the need with its SMS based money transfer platform, M-PESA, making Kenya the global leader in mobile banking technology. All of the subsequent innovations here have been inspired and made possible by the widespread use of cell phones and M-PESA.
Government and Infrastructure
The government is promoting the use of mobile money and technology development in Kenya. Bitenge Ndemo, who became minister of Information and Communication in 2005, is credited for spearheading the initiative. He bypassed ceaseless discussions between 23 African countries about launching a joint fiber optic cable, by linking right into a cable from the United Arab Emirates instead. It’s been his priority to lay down additional cables ever since. “When the cable was switched on in 2009, Ndemo made sure universities got unlimited internet capacity.” said Robin Dixon of the Los Angeles Times.
Bitenge Ndemo’s push for Kenya to become a regional technology hub does not end there. Most recently, he’s spearheaded the Konza Technology
City project, which broke ground on January 23rd. Fifteen kilometers outside of Nairobi, the $10 billion investment will be a public-private venture that includes a business district, science and technology parks, a university, conference facilities and residential areas. The government of Kenya anticipates that the project could yield 200,000 jobs in 20 years, along with sizeable investments in other sectors like health, education, manufacturing, financial services etc. Executives behind the project have already received 250 applications from local and international firms who would like to invest in Konza. Some of the multinational corporations seeking a piece of the pie include Samsung, Google and China’s Huawei Technologies.
Critics of the project have serious reservations about the government’s ability to bring such a large-scale project into fruition, when it has not yet managed to gain hold of municipal issues in the capital like traffic, electricity, water and drainage that fester under expansion. Nonetheless, the proposition and ground breaking of Konza represents a clear vision that policy makers and business executives have for Kenya as an ICT hub in the region.
Research Labs and Business Incubation
M: Lab East Africa at the University of Nairobi: Key to Kenya’s growing role in IT and mobile application development are its research labs and business incubation centers, where techies and entrepreneurs gather to collaborate, network and implement projects. In 2011, the University of Nairobi established M:Lab East Africa with the help of iHub, a local technology center. First funded by the World Bank InfoDev grant, the lab was founded to facilitate the innovation of low-cost, high value mobile applications.
iLab Africa at Strathmore University: Just on the other side of town, Strathmore University, Kenya’s premier private institution for business education, has its own research and incubation center called iLab Africa. At iLab, faculty and students have teamed up to develop mobile applications that overcome development challenges in health and education. ILab boasts a few high profile partnerships. For example, Strathmore and Safaricom offer a masters degree in mobile application development. Samsung has established an innovation lab there and Google funds IT education for girls in rural schools, in addition to sponsoring mobile application boot camps at Strathmore and elsewhere in the region.
With support from the Clinton Foundation and Ministry of Health, iLab has generated an application that tracks pre and post natal care of mothers and their babies in rural areas. They’ve also created one that sends the HIV status of newborns to doctors and clinics for treatment. On the education front, they’re mobile application development is centered around digital rights management and the provision of learning materials.
Climate Innovation Center (CIC) at Strathmore University: In addition to ilab Africa, Stathmore University hosts Kenya’s Climate Innovation Center, a climate technology innovation hub, established with the World Bank’s infoDev program. The center is poised to accelerate growth and innovation in renewable energy, agriculture and clean water by providing entrepreneurs with the funding, mentorship and facilities needed to innovate.
iHub: iHub is a physical nexus for the tech community in Nairobi. Established in 2010, it is an open facility for young entrepreneurs, programmers, designers and researchers. Free membership is offered to anyone with a demonstrated involvement in technology. Ihub provides access to facilities, networks for funding and opportunities to collaborate. You can become a member of its online community remotely, have physical access to the work space or pay a monthly fee for a semi-permanent desk.
Ihub’s very own research team is engaged in projects like their collaboration with Refugees United, an organization that helps refugees track missing family members. The team has upgraded the organization’s paper based sign up form to a WAP enabled sign up on mobile phones. They’ve generated easy to consume info-graphics about trends in East Africa and launched Spider M-Governance in 2011 to identify gaps in water governance transparency in Kenya.
Marion Walls | KF19 | Tanzania
I’m on a quest to follow a Kiva loan from lender to borrower! How often have I dreamed of this whilst browsing my loans on a frosty winter weekend in Canada? Now I have an ideal opportunity to do so as the Kiva Fellow in Tanzania, so I’ll take you along for the ride!
My directions are set when a friend emails from Calgary: “I donated to the Jaguar Group. They’re asking for a loan in support of their beauty salon. I chose that one in honor of you – I figure you might want a haircut or a color given you are there for months!” Too true; I’ve been in Tanzania since September and this Kiva fellowship has been rich and rewarding, but also tough, so I’m looking a little ragged… And salons here offer beautifully intricate braids – why not give them a try?
I love the idea of making the personal connection between a Kiva lender in my hometown of Calgary, and a Kiva borrower here in Dar es Salaam! I had the dubious distinction in KF19 Fellows’ class of traveling furthest to my placement, so this will be an opportunity to reel in some of that distance. And what fun to report back to my friend on how his loan is working out here on the ground! I immediately start making arrangements to meet Juliet, the featured borrower of Jaguar Group…
Lender’s city; borrower’s city
You may already be familiar with Calgary – prosperous modern city buoyed by oil wealth; 5th largest metropolitan center in Canada; enviable location at the foot of the Rocky Mountains; renowned for its volunteer spirit; host city of the ’88 Winter Olympics (remember The Jamaican Bobsleigh Team?); 9th largest lender city on Kiva in 2011 (way to go Calgary)! In short: it’s a privileged city with a lot of heart!
What can I tell you about Dar es Salaam? The name conjures up exotic images of centuries old sea-trade, sultry summer evenings, and short ferry rides to magical Zanzibar island!
But the reality of daily life is far from tropical paradise for most of Dar’s 3 – 4 million inhabitants; believe me, this is one grindingly hard city in which to eke out a living… Still, people keep coming, lured by hopes of a better economic future than they face in their hometowns or villages. Dar is one of the fastest growing cities in the world. It’s a statistic with unenviable consequences: Dar’s infrastructure is clearly not keeping pace with the burgeoning population. Unrelenting heat and humidity are exacerbated by almost daily power cuts that mean no fans or air conditioning (in the words of my office-mate: “We are practicing for the fires of heaven!”), and no reliable refrigeration for foodstuff (where do maggots come from anyway?)
The dala-dala (bus) system is extensive and was genuinely well designed at inception – but now it’s inadequate and the overcrowding is epic! Likewise, unremitting traffic on overwhelmed roadways morphs the “5 p.m. rush hour” into the “2 – 8 p.m. standstill”. (Can traffic officers judge precisely when 64 passengers crammed in a sweltering dala with seating for 32 will finally reach breaking point? Only then do they signal us through the intersection!) Admittedly construction is underway to address transportation issues, but I regret the almost imperceptible progress in the 5 months I’ve been here.
Yet, in the face of wretched infrastructure challenges and the fact that formal employment is not keeping pace with population pressures either, the people of Dar find ways to get by – they have to. So the informal economy is bustling and every hot and dusty road is lined with shops and stalls; every opportune space is claimed. (Note to self: “That’s why Kiva loans to entrepreneurs are so relevant in Dar!”)
And if half of all Tanzanians are getting by on $2 per day per Kiva’s country statistics, it’s surely not from want of trying: it’s common to work long hours here in Dar.
No two ways about it – it’s a hardscrabble life here. But there’s a side to this city that defies all expectations: people in Dar (as in all Tanzania, in fact) are extraordinarily friendly, and helpful, and tolerant! I know it sounds cliched, but this is truly friendliness, and willingness to help, and tolerance, on a scale I’ve seldom encountered in my travels on any continent. It occurs to me this is the real key to living in Dar!
The expedition across town
Of course you realize Kiva borrowers don’t work in downtown office towers, but still you might be surprised by the widespread locations of their businesses (such as Juliet’s salon). Greater Dar es Salaam area is extensive, and many Kiva borrowers live and work on the outer fringes – perhaps 50 km away from my base at the main branch of Kiva’s partner MFI, Tujijenge Tanzania.
I had no concept of the stamina it would require before I started visiting borrowers last September! My mind boggles when I consider that loan officers from Tujijenge routinely travel across Dar to attend borrower group meetings every week… (The numerous challenges MFIs such as Tujijenge face in delivering services here in Dar are daunting. That’s why I admire MFIs for working here - where the need for microfinance is great, where it can make a significant impact on the lives of borrowers, but where it is not easy.) The loan officers are all busy as bees so I enlist Rita, the star Kiva Coordinator at Tujijenge, to join me on this visit to Juliet. We set off together, as always.
I use my favorite strategy: Start early in the morning. Take a series of “city-bus” dalas to the furthest point at which bajajis (auto rickshaws, named for the pricipal company that makes them) are available. Cover the final stretch to the borrower by bajaji, because the alternative of switching first to a “mini-bus” dala then risking life and limb on a piki-piki (motorbike taxi) is no fun at all. Persuade the bajaji driver to wait whilst we visit the borrower. Then do the trip in reverse. And hope to get home before dark…
(Rita scolds me for excessive expenditure on bajajis, but I can’t help it: I love everything about them! Bajaji drivers are fearless; they are consummate alternate-route-finders in the face of traffic jams; they are willing to tackle any road. Bajajis can negotiate all terrains successfully, or at least are light enough for this Kiva Fellow to push out of the sand when stuck… The open-air design provides sweet relief from the heat (even if the air I’m breathing is laden with diesel fumes, and bugs impale themselves on my camera lens), and I can choose how many of us are on board. I bet you’d take a bajaji too, if you had the chance!)
On today’s trip to see Juliet, a second bajaji driver dashes up just as we finish negotiating our fare with the first. “Mama,” he calls to Rita, “you gave me my loan at Tujijenge!” It means he has a Kiva loan! “Oh, I wish we could go with you then,” Rita responds. “It’s alright, you can go with him – he’s my friend,” says the Kiva guy, with characteristic Tanzanian friendliness. (What a great coincidence! I told you I love bajajis!)
Meeting the borrower
Turns out my meeting with Juliet is not happening after all… Instead of Juliet, Prisca is waiting for me at the roadside. Prisca is Chairman of Jaguar Group, and she tells me Juliet has bowed out today. Of course I’m disappointed, but I try to imagine myself in Juliet’s position as a borrower. Is she simply too shy? Battling a family or business crisis she’d rather not discuss? Scared because she’s behind on a repayment (even though she’s paid off 5 previous Tujijenge loans successfully)? Unwilling to have nosy neighbors learn from my obvious presence that she has a loan (out of financial privacy concerns, or because they may press for a share of the cash)? Unwilling to have her husband learn she has a loan (and thus jeopardize her personal financial stability)? Or is it something else entirely? I don’t know, but I’d far rather Juliet refuses than indulges me at her own expense – my visit is purely whimsical and not business related. It’s an apt reminder that a borrower’s loan is a significant business contract that is not undertaken lightly; it must be managed and paid back in the context of real-life complexities.
Meeting the borrower (Take 2)
Prisca saves the day by inviting me back to her store. I’m very happy to accept because, after all, the Kiva loan covers Jaguar Group, not Juliet alone. (Group loans are a mainstay of microfinance. You can read about their many benefits in Dar in my earlier Kiva post: Group Loans – Filling a Particular Niche.) Prisca hops aboard our bajaji and we’re off on a roller-coaster ride!
Prisca owns an impressively well-maintained store selling sodas (pop) and beer. There’s a shady seating area too, so Rita, the Bajaji driver, Prisca, and I settle down to enjoy a cold soda (bonus – Prisca has a fridge!) and a chat. I show Prisca her Jaguar Group’s loan on Kiva, and she breaks into a wide smile as she sees herself in the photo! She quickly points out Juliet, as well as Judith who was featured in Jaguar’s previous Kiva loan. She’s somewhat incredulous when I point out my friend from Calgary in the Lender section…
I ask Prisca about herself. She’s married, has a young son and daughter, and has always lived in this area of Dar. Her store used to stock a wide variety of goods but in 2011 thieves broke in and stole pretty much everything, including the scale for weighing goods like rice and dried beans. It was a cruel setback. That’s when Prisca joined Jaguar Group and started taking loans from Tujijenge to try to get back on her feet. Yes, the series of loans have helped restore her business – injections of cash every few months are invaluable in buying bulk stock at cheaper prices, and purchasing items like the fridge to draw customers. Some of the extra profit that is generated helps with household expenses (think school fees) too. But there’s still a way to go… That’s why Prisca has stayed with Jaguar Group, and recently become group Chairman.
Closing the circle
I’ve done what I’ve always dreamed of doing: followed a Kiva loan from lender to borrower! Now I know the people on both sides of the contract, and I’m totally delighted.
I report back to Calgary: “The bajaji ride was one of the best yet! The rest of things didn’t quite go to plan, but still they ended well. I met Prisca, not Juliet. I got a soda, not braids… Prisca was amazed to see you! Her business is coming along, and she says the loan is helping. Here’s the postcard I made you – it was a brilliant day, thank you! M.”
Click here to lend to a Kiva borrower in Dar es Salaam. (Please check back at the start of next month if all Tujijenge Tanzanian loans are currently funded!)
See more of the daily sights I’ve enjoyed in and around Dar in The Illustrated Guide to Cooking Thanksgiving Dinner! (Tanzania Edition). Or see the complete antithesis in On the Road Less Travelled: Kagera Region in Tanzania.
After an easy trip. I arrive to Accra, Ghana. The first feeling you have when you step out of the plane is an intense hot an humidity, and this in when you miss the snow at home.
It is 8 PM and the Ghanian national football team is playing the semifinals of the African Cup against Burkina Faso. The whole country is mobilized. I can hear the screams all along the airport. For the moment they are drawing, but with good opportunites. Maybe it is because of the macth that taxi drivers are behaving in a foolish way. I asked one of them about a hostel I knew, and he answers me he takes me there without any problem. I jumped on the taxi with all my stuff, we move forward few meters and he starts asking everyone where the hostel is. I ask him if he truly knows where it is, and he answers me no.
I make the same process with another taxi and it happens completely the same, till a kind woman called Evelyn, offers me her help. She told me she knew a hostel not far from her home. I relied on her and her little son John.
After a few minutes drive we arrive to the hostel. It was not as cheap as I expected, but it is 10 am, I am exhausted and the last thing I want to do is wandering in an African city of 3,5 million habitants. I go straight to bed.
The day after everything is the first time for me.
My first bedroom
Mi first sight of Accra
My first bathroom
My first coconut
My first meal
My first defeat.
I realize Ghana lost in penalties. It is in that moment when I remind they almost are the first African country in reaching Worldcup semifinals. An Uruguayan player´s hand and the latter missed penalty of a Ghanian player impeded it.
Bad luck in football continues for me. In El Salvador I attended with Fundación Campo Microfinance the qualifying game between Costa Rica and El Salvador. Of course, they lost.
But this event do not remove the smiles from them. They know what is suffering in the field and out of it. This is why they give thanks for reaching so far and they will try again harder than ever next year.
The day after the defeat, some supporter demonstraiting their devotion for the national team.
By Kiva Fellows | KF19 | All Over the World
With January 2013 coming to an end, KF19 fellows are either continuing on with KF20 or returning home to various responsibilities and careers. Regardless of the next adventure or destination, one thing is common among all: KF19 fellows have been permanently changed by their placements.
What began as a joint blog post about any person, place, or event during the course of the fellowship that affected our lives, of itself turned into simply the one person who left the most impact. Afterall, Kiva’s mission is to alleviate poverty through connecting people. The fellows of KF19 have witnessed this connection over the course of the last three to four months, and nothing could have prepared us for meeting the people who would touch our lives in various ways.
KF19 presents to you Kiva One, a small collection of stories about human connections, hope, and inspiration.