Posts tagged ‘blogsherpa’
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.
By: Abhishesh Adhikari
One of the best parts about my Kiva Fellowship has been the opportunity I get to meet and interact with entrepreneurs. During the 4 months that I spent in Kyrgyzstan, I helped Bai Tushum (Kiva’s partner MFI) launch a new Startup Loan Product and met a wide variety of entrepreneurs all across that country. After I got back from Kyrgyzstan in January, I have been working on a new Kiva project called Kiva Zip, trying to expand it here in Chicago.
Kiva Zip is a new initiative to make interest-free, small business loans to entrepreneurs in the United States. This new lending model is based on community relationships whereby entrepreneurs can request interest-free loans (up to $5000 for the first loan) based on endorsements from organizations or prominent individuals in their communities. Lenders can view the profiles of these entrepreneurs on Kiva Zip’s website, and lend $25 or more at a time.
Zimbabwe made world headlines over the course of 2008 and 2009 when hyperinflation gripped the country. What is often believed to simply exist in economic textbooks was occurring daily in the streets; the government was printing more and more Zimbabwe dollars, the currency would lose its value, more Zim dollars needed to be printed, new bills had 1, 2 or even 3 zeros added to the end, the currency would further lose value, more printing…
These events led to peculiar sights such as “starving billionaires” as well as Zimbabweans needing a couple of suitcases full of bills in order to purchase a simple loaf of bread.
Locals even told me stories of million dollar bills lining the streets. No one would “waste their time” picking them up since at one point a million, or even 10 million, Zimbabwean dollars was absolutely worthless.
As much as such images can appear amusing, the daily reality was painful for the vast majority of Zimbabweans. Even if you managed to amass enough bills to purchase any basic goods, chances were that a grocery store’s shelves were empty since it was too expensive to import any products into Zimbabwe.
Officially transactions in foreign currencies were illegal, but unofficially everyone started operating in US dollars and South African Rand. Eventually the government abandoned the Zimbabwean dollar and officially adopted the US Dollar.
The switch in currencies hasn’t necessarily fixed all issues. Nowadays there simply are not enough small bills and coins in circulation. ATMs spit out crisp $100 USD bills but the only available $1 USD bills appear to date back a few decades earlier.
This lack of available change has led to daily issues as well. For instance I numerously had enough money to pay for groceries, lunch, coffee, taxi ride, etc. but I happened to have a $20 bill when the cost was less than $5 or $10. In such situations you can either skip the purchase, receive a credit receipt for the change you are owed or at times forced to forego the entire $20.
For smaller change, such as coins, South African Rand, and at times other African currencies, are commonly used in daily transactions. At various stores you can also receive candy in lieu of actual change. Unfortunately the candy is just like the $1 USD bills, it’s usually pretty worn out.
On March 4th, 2013 over 12.3 million Kenyans headed to the polls to elect their next parliamentarians, senators, governors and their fourth president since independence 50 years ago. In the weeks prior to the big day, Kenyans urged one another to become registered voters, consequently breaking all of its election records to date. Over 14.3 million people registered to vote, 86.1% of which turned out on election day. Many voters woke up before dawn, queuing as early as 1:00 am, and waited more than 10 hours to cast their ballots.
The atmosphere leading up to the elections was one of caution and optimism. The 8 presidential candidates participated in two nationally televised policy debates, the first ever to take place in East Africa, during which they personally pledged to spearhead peaceful campaigns. All recent YouTube clips have been prefaced with advertisements of young athletes urging Kenyans to vote peacefully. The presidential candidates joined hands and posed for pictures that splashed across the front pages of newspapers, symbolizing their collective commitment to preventing a repeat of the post-election fallout in 2008. Last week, Kenyans across all ethnic lines joined together in a prayer vigil for the upcoming vote in Nairobi’s Uhuru Park.
Kenyans held their breathe and waited five days for the results. The delay was caused by the toll of high voter turnout on election infrastructure. The new electronic counting system crashed and a row broke out over whether spoiled ballots would be included in the official count or not. On Saturday, March 9th, the Independent Elections and Boundaries Commission (IEBC) finally announced that Uhuru Kenyata cleared the 50% threshold required by the new constitution and beat Raila Odinga by .07%. According to the New York Times, “The second-place finisher, Raila Odinga, Kenya’s prime minister, has refused to admit defeat and plans to appeal to Kenya’s Supreme Court to overturn the results.” There is also a tenuous cloud hanging over the winners, Uhuru Kenyatta and running mate William Ruto, who have been accused by the International Criminal Court (ICC) of crimes against humanity for their alleged role in stoking the violence during the last election. Consequently, many Western nations have issued statements that commend the “Kenyan people” for exercising their democratic right peacefully, but stop short of congratulating Uhuru Kenyatta and William Ruto.
Although Raila Odinga plans to contest the loss of his third presidential bid and there is some apprehension about Kenya’s standing within the international community, Kenyans have had their say. Nairobi is calm and people seem keen on accepting the results and moving on with their daily grind. The biggest winner in this election is peace. There is a deep seated commitment to maintaining law and order across the entire societal spectrum that began in 2010, when 67% of Kenyans approved a new constitution, in direct response to the policies or lack there of that framed the fallout in 2008. For example, the new constitution requires that candidates cease campaigning 24 hours before the voting day and that the winning presidential candidate garners 50 percent plus one of the votes.
All election summaries aside, you’re probably curious about what Kenyans have been thinking and saying in the days before, during and after the election. One of our favorite ways to pass the time while riding in vehicles or walking with others is to conduct informal polling. We’ve asked everyone, but we especially liked asking taxi drivers and the people we work with. Everyone seems to agree that they want politicians who are not corrupt to move Kenya forward. They also seem to think that this election is a formality, and that they will have better candidates to choose from, who offer a greater deviation from the political status quo in 2017. We started the polling with a variant of “Do you mind if I ask for whom you are voting?” Here is a glimpse of election buzz from the field.
How have the recent elections impacted your life?
“I’m here on the coast making money for my family because the safari mzungus have dried up.” Joseph lives in Masai Mara, which is the most tourist visited reserve in Kenya and about 610km from where I met him. He explained that over a month ago the tourists (mzungus) stopped coming because they were fearful of violence and robbery due to the elections. According to Joseph, there’s been no violence in his home region, however he still plans to make the long trek back to Masai Mara this week to protect his land and his family from “inter-tribal disputes” that he thinks may occur if people don’t like the results. –Joseph [Mombassa, Kenya
What is the difference between election 2013 and the last election in 2008?
“I work as a fundraiser [at a University in Nairobi]. I think the only difference [between this time and the last] is the fact that everybody is preaching peace. Until a certain power hungry, pre- independence group of families passing down the political seat like a monarchy fades away, then I think change is not happening any time soon. I voted for Raila, because I think he is not angry for power. During the last general elections, he clearly won, but in the outbreak of violence, for the sake of Kenyans, he was ready to take the back seat. That convinced me that he gives a damn about my life. A true patriot. I voted at Nairobi Primary, I went at 10:30 am and was done at 12:30 pm. The atmosphere was really good and I actually made friends with someone on the queue. Nobody was talking politics and so we were just a bunch of happy Kenyans, with the furious sun above us laughing at people trying to jump the queue and we had fun voting. And yeah, we shared candy when sugar levels started going down.” –Development Professional [Nairobi, Kenya]
What issues would you like addressed by the next administration?
“Transport is a major problem and I would love to see my next leaders install a railway system that works and is affordable to all.”
– Development Professional [Nairobi, Kenya]
““I hope that whomever gets elected continues with infrastructure development. I would hope that our economy grows, that the health
sector is addressed (meaning everyone gets basic health care) and unemployment is tackled. The best way forward would be by encouraging foreign investment rather than foreign aid, encouraging investment in our micro, small and medium enterprises, definitely investing in our so called informal sector and growing our East African trade block.” –Architect [Nairobi, Kenya]
How did you prepare for the election?
“My family and I and a few friends [prepared for the elections by reading] through the new constitution, looking at how the new government is to be structured, seeking to understand how it will work and what our rights are.” –Architect [Nairobi, Kenya]
“All we can do during this election is pray for peace and that the best leader to take Kenya forward will win. I’m leading a prayer service every weekend and ask that you too pray for our country.” –Microfinance Professional [Nairobi, Kenya]
Who did you vote for?
“I voted for Peter Kenneth because I believe he stands for change in our country. He is new blood, unshackled by generational family ties
to political elitism and stands for a progressive paradigm shift – a shift away from tribalism and elitism and towards gains based on
merit. How great the day when Kenyans can stand tall, confident that they can get ahead, not based on family name, or tribe or bank
balance, but on how hard they work and how good they are at what they do.” –Architect [Nairobi, Kenya]
“I’m a full Kikuyu but am not voting based on tribal affiliations this year. The Kikuyus have ruled this country for years now and I think it’s time for a change so I am voting for Raila Odinga.” –Mountain Porter [Mt. Kenya, Kenya]
“I’m still trying to decide between voting for Raila or Kenyatta. I think Raila is the safe option, he would lead our country as it has been led until now and I know what I would get from my vote. But Kenyatta has the potential to bring more change to Kenya. It’s a hard decision.” –Taxi Driver [Nairobi, Kenya]
“A run-off election would be really expensive for Kenyans so many voters who might otherwise vote for one of the less popular candidates might instead align with Raila or Kenyatta in order to avoid a run-off. I too think Peter Kenneth and Martha Madaraka are the best candidates to take our country forward one day but they are not ready for this election – it’s not worth voting for them yet.” –Microfinance Professional [Nairobi, Kenya]
“Well, you see, I am voting for the candidate most likely to win, who also happens to be the best leader: Uhuru Kenyatta. And it is not because I am Kikuyu; he is the best politician…I do not care about the ICC issue because, you see, that was just a plot by his enemies. There are many who share the blame for the violence” –Taxi Driver [Nairobi, Kenya]
“My husband says my vote won’t count since we are going to cancel each other, but I want to send a message that I do not like corrupt politicians, so I will vote for Peter Kenneth.” –Microfinance Professional [Nairobi, Kenya]
“Ah! Of course you can ask! But I cannot tell you yet. I am watching the debates tonight, and I will see who is the strongest, who it is that I want to lead our country. It is one thing to hear them giving a speech, and another to hear them answering questions without someone whispering the answer in their ears.”n –Taxi Driver [Nairobi, Kenya]
“I am voting for the best leader. A leader who will be the most thoughtful and has a proven record—that is Peter Kenneth! He will not win, no, but it is my privilege and responsibility to vote for who is the best for me and for other women and children.” –Microfinance Professional [Nairobi, Kenya]
“I am Kikuyu, but I want a man who can change things; I am voting for Raila.” –Microfinance Professional [Nairobi, Kenya]
*This post was written and arranged by Duda Cardoso, Jada Tullos Anderson, Eileen Flannigan and Katrina Shakarian
Although there is a growing middle class in Africa, the lack of basic services, adequate infrastructure and access to banking are still pervasive. Rather than completely stifling growth, these deficiencies have become fertile ground for innovators whipping up solutions and products customized for the continent. In Africa, developmental challenges can be synonymous with opportunity. “We thank God for giving us many problems so that we can find solutions,” joked Kenyan Information and Communication secretary Bitange Ndemo to the Daily Nation at an IBM forum in February. Here’s a glimpse of a few of those innovations, both homegrown and imported by global entrepreneurs, that are putting Nairobi on the map.
M-PESA: Mobile Money Transfers
It’s impossible to drive through Kenyan towns and cities without seeing the token M-PESA kiosk radiating bright green through the comings and goings of daily life. In 2007, Kenya’s leading mobile network operator, Safaricom, revolutionized the movement of money in the country with M-PESA; an SMS based banking system that now accounts for millions of shillings in money transfers everyday. Prior to M-PESA, the average Kenyan did not have access to financial services and money had no means of moving around the country fluidly. Since 26 million Kenyans have become mobile subscribers, M-PESA usership has also grown. According to South African writer, Joonji Mdyogolo, “M-Pesa processes more transactions in Kenya than Western Union does around the world.” Low, middle and high income Kenyans have all adopted the most distinguishing feature of Kenya’s new era in cellular technology, mobile money. Since it’s SMS based; even a simple cell phone without internet capabilties will due. “Kenya is the undisputed world leader in mobile money (bankless transactions via cellphones), a development introduced in 2007 by cellphone operator Safaricom, which now handles more than half the world’s mobile money transfers. As Kenyans leapfrogged from no bank accounts or Internet into cellphones and mobile money, the transfers took off,” said Robyn Dixon of the Los Angeles Times.
InVenture: SMS Based Accounting
Safaricom is not the only business tapping into the unbanked and designing products that circumvent some of the developmental challenges on the continent. CIO just named InVenture one of the 7 Hot Mobile Start Ups to Watch in 2013. InVenture is a California based start-up. Their product, Insight, is a simple SMS based accounting tool that enables low to middle income businesses to track their finances and better manage their money. The product, first launched in India and now entering Africa via Kenya’s mobile application scene, compiles customer data and generates a standardized global credit score. Once Insight takes off, low to middle income Kenyans, with previously no way of building a credit history, can do so. No internet? No smartphone? Inventure says, that’s no longer a problem.
Kiva Zip: SMS Based Crowd Funding
Kiva is no stranger to Kenya’s burgeoning mobile technology scene either. One year ago, the non-profit launched Kiva Zip, an SMS based micro-lending pilot that connects lenders and borrowers through M-PESA. Since no banks or micro-finance institutions are involved, the loan is administered at 0% interest. Lenders from the world over are contributing to loans in Kenya , which are received and repaid entirely on mobile phones.
Ushahidi: Real Time Information Aggregate
Ushahidi, which means ‘testimony’ in Swahili, is a social media platform on which users can map out eye witness accounts of crisis, violence and protests in real time. Ushahidi is a non-profit tech company that develops free and open source software for information collection, visualization and interactive mapping. Users send reports of trouble through e-mail, text message or twitter that are inserted into an interactive map online.
In 2008, a group of Kenyan developers and bloggers created Ushahidi in response to the post-election violence sweeping their country. According to the Daily Nation, “Ushaidi maps crisis using a combination of Google mapping tools and crowd-sourced information.” Currently, the platform is used in 159 countries and has been translated into 39 languages. In 2010, for example, residents of Washing D.C. residents and New York utilized Ushahidi’s platform to report on and respond to the clean up effort surrounding major snow storms that hit both areas.
The Ushahidi staff launched an alternate website, Uchaguzi, specifically for the Kenyan election on Monday, March 4th. Kenyans are encouraged to text their reports and locations to Uchaguzi at ‘3002.’ In addition to documenting citizen reports, the site offers a comprehensive guide to governmental policies and procedures related to the election.
Kopo Kopo: M-PESA Merchant Accounts
Kopo Kopo allows small and medium business owners to set up separate merchant accounts to receive mobile payments from customers using M-PESA. The platform enables customers to send payments to vendors without the fee that is normally attached to a mobile money transfer. The added value includes increased security because of less dealings in cash, as well as unqiue opporunitiesto for business owners to interface with clients, like sending them SMS based advertisements. Kopo Kopo piloted their platform in Sierra Leone and Kenya. They’ve officially launched here in Kenya because of Safaricom’s M-PESA platform.
World Reader: E-readers for All
Former Amazon.com executive David Risher is the founder and CEO of World Reader, a non-profit whose mission is to make e-readers widely available in the developing world. World Reader’s most recent figures indicate that it has distributed more than 428,000 e-books to 3,000 children across Kenya, Uganda and Ghana. The organization has also launched Worldreader Mobile, an application that provides access to a large range of literature on mobile phones.
Open Data: Government Transparency
In addition to bringing high speed internet to Kenya, Communication Secretary Bitange Ndemo persuaded President Kibaki to add Kenya to the ranks of 25 countries participating in Open Data, a platform that makes non-classified government information available online for free. Although Kenya is officially on board, government officials haven’t quite warmed up to the idea of divulging their records. According to the Daily Nation “The Ministry of Information is currently developing a policy document to oblige government agencies to give up all non-classified information collected using tax-payer’s money.”