adminKudzai M. Mubaiwa
We proposed in our last column that an inordinate increase in the price of data, or “the internet” would likely negatively impact emerging enterprises in Zimbabwe and to some extent stifle innovation. This of course would hold true for the typical “start-up” and small business, as well as the thousands of micro-entrepreneurs dotted across the nation that have come to rely on WhatsApp as an affordable means of communication and sharing pictures of stock, or Facebook for bidding purposes.
Thereafter they happily receive their payments on mobile phones, or in bank accounts that link with their mobile accounts and can also move money at their convenience. It sounds fantastic, and indeed there are opportunities in the digital age, there also challenges that are still inherent in that cycle.
The most glaring is that offline interaction is still required to deliver in the case of tangible goods. Most transactions presently are payment on delivery. The presence of the internet has not necessarily solved the dynamic of logistics in most parts of Africa never mind Zimbabwe. While “uberisation” is a buzzword and we have some local companies testing solutions that enable easier distribution of product, it comes with the dynamic of many moving pieces — volumes being the most important, then utility, vehicle costs and finally pricing.
Some workarounds have included using motorbikes that are perhaps faster and cost effective but there is no empirical evidence that shows whether this results in profit.
A non-tangible matter to deal with, at a price, is that of trust — it takes time to get users to trust the mechanism when it is absolute strangers; though we already have social circles that are used for moving goods. To close the circle of trade, delivery will need to be solved in a smart and innovative way.
When we speak of the opportunity of the internet, we also tend to forget the basic challenges of access.
Most users are not accessing all of the internet, but specific applications. The full internet experience out of bundle is pricey. Even at low cost, there are usually more who cannot afford to use it than those who can. Even if it were free, devices cost money, more so the ones that can carry these applications that our people favour. It is not uncommon to have families share handsets, or hear someone say they “do not have a phone these days” because it may be broken or retrieved by a lender. SIM cards thankfully have become affordable for most, but devices require a lot more investment, that is often sacrificed when there are other pressing household needs.
Effectively the narrative of decentralised digital ecosystems transforming the informal economy is debunked. The business models are still flawed and we cannot at this point claim that impact is high in Zimbabwe, though according to the Financial Times, gig economy apps may have helped global unemployment hit the lowest point in 40 years. They still face negative publicity for precarious and uncertain incomes.
It is instructive to learn from the recent research findings by Niti Bhan a design researcher who recently presented on East Africa in a session at Europe’s biggest internet and the society conference. She acknowledged that there, apps that can affordably drive demand and scale reach, are currently transforming local markets. They are opening up new opportunity spaces for the social, mobile, youthful generation.
Easy to set up and deploy, these apps offer a flexible and negotiable solution to the age old problem of demand and supply. She focused on the evolution of the East African mobile economy over the past 20 years, including the emergence of hybrid solutions due to the unevenly distributed nature of device adoption. She also looked at the current scenario “Informal 3.0”: where the gig economy meets the informal, in areas such as trade, retail, micro-manufacturing, and marketing.
Finally, she observed the early signals of “Informal 4.0”: the next generation of makers and doers. In truth, most of those in the digital native generation are consumers online rather than makers and doers, but some are leveraging the opportunity of the internet.
The present state of digital in Kenya was coined perfectly in a recent writing by Nanjala Nyabola, albeit in political commentary. She noted that: “Technology has changed radically in Kenya over the past decade, as it has everywhere else. Almost nine out of 10 people have a mobile phone, and a quarter of the homes have an Internet connection — among the highest rates in the developing world. In a population of about 48 million, there are at least seven million Kenyan Facebook accounts and another 10 million on WhatsApp. Twitter lags behind at only a million accounts, but it is supplanting television and print as the premier space for political critique. mPesa, the mobile money transfer platform, was less than six months old at the time of the 2007 election.
Today, transactions on mPesa equal almost a third of the country’s GDP, and Kenya has the highest number of mobile money transactions in the world. Even with such progress, leadership even, she went on to suggest that there are things technology cannot fix. This stays true in business.
In response to Niti’s observations, another panellist, Lisa Nyamadzawo noted that: The rise of emerging technologies in most developing economies has somewhat been faced by a paradox. The situation has been smart technologies have resulted in the exclusion of minority groups such as women, the informal sector and rural communities in the status quo.
The discussion is on how emerging technological development must include them to avoid a situation of “not connected; can’t afford” population.
In Zimbabwe we are yet to achieve the numbers they have in Kenya, though we are relatively in similar situation with widespread social media and mobile money use. The key learning is that the availability of the internet will not necessarily translate to business problems being solved. What will make the difference is deliberate inclusion strategies such as building community networks that enable access for the marginalised. Digital skills training and digital literacy initiatives will be necessary at scale. That is the only way to ensure we leave no one behind and make the opportunity of the internet for all.
Feedback:Email-kudzi@investorsaint .co.zw, Twitter-@kedukudzi
Bongani Ndlovu