Celebrating Mobile Money

On March 6, 2014, Safaricom celebrated the 7^th Anniversary of MPESA since it was launched by former Safaricom Chief Executive Michael Joseph on March 6, 2007. The mobile money transfer service is one of the biggest success stories in the history of serving more than two thrids of the Kenyan population and flowing approximately 43 percent of the country’s Gross Domestic Product (GDP).  Most of the unbanked in Kenya benefited from the service as a channel of conducting business without incurring the hefty bank transaction charges and enjoying convenience of doing commerce anytime anywhere. Soon the other service providers followed suite with Airtel Money, Orange Money and Yu Cash. The initial concept of M-Pesa was to create a service which allowed microfinance borrowers to conveniently receive and repay loans using the network of Safaricom airtime resellers. At the moment, MPESA has over 17 million users, over 65,547 agent outlets, 1,482 paybill partners and 541 bulk payment partners. Three factors are attributed to the great success of mobile money in Kenya namely; the high mobile telephony penetration rate, simplicity of the SIM based application and lack of extensive banking services in the rural areas.

Kenya stands out as unique with the thriving mobile money transfer market. The same service has elicited different consumer reactions in other parts of East Africa. M-Pesa was launched in Tanzania by Vodacom in 2008 but its initial ability to attract customers fell short of expectations. Vodacom M-Pesa offers mobile money services at around 53 percent of the Tanzania’s mobile money market while Tigo Pesa is at approximately 18 percent and Airtel Money at approximately 13 percent. In June 2009, 14 months after the launch of M-PESA in Tanzania, Vodacom announced that registrations had reached 280,000 users who were transferring USD 5.5 million per month at about 930 agent locations. When this is compared to the 2.7 million users and 3,000 agents that had been registered in Kenya 14 months after the local launch of M-PESA, it is clear that some key differences exist between the two implementations. However, there has been a change of trend with the future looking more optimistic. Last year, Vodacom Tanzania reported that M-Pesa revenue from its Tanzanian operations shot up by 125 per cent during its financial year ended 31 March 2013. This shows a good trend of the Tanzania market in adopting mobile money service and possibly follows the Kenyan example.  

In Uganda, consumer can chose from Airtel Mobile Money, Warid Pesa , Orange Money, MTN Mobile Money and UTL M-Sente. Since its introduction to Uganda in 2008, mobile money solutions have had a profound effect – today some 9 million Ugandans use the service to exchange, save and spend money. The Bank of Uganda (BOU) has showed in its financial report for January to November 2013 shows mobile money transfers in the country reached US$640 million. Small businesses can now bank their money every day instead of handling large amount of physical cash, and people are able to deposit money immediately without the risk of theft or needing to travel to a bank. Some 80 percent of Ugandans are farmers, but with mobile money, distance from traditional banking facilities is now no longer a barrier to taking control of your finances. Since the introduction of mobile money in Uganda, there are more mobile money users compared to bank account holders.

In Rwanda, citizens are finding it easier to transact business through the mobile money platform provided for by telecom operators MTN and Tigo than using the bank. Approximately about 45 per cent of the households have access to mobile phone in Rwanda. As of 2012, according to Rwanda Utilities Regulatory Authority (RURA), there were over five million subscribers in Rwanda. MTN Rwanda, the country’s largest telecom operator by market share, has handled transactions worth Rwf65 billion through its mobile money service since 2010. It has 470,000 subscribers registered on the MTN Mobile money service. TIGO, the second largest operator has 9127 subscribers on its TIGO Cash with 1,917 transactions daily. Judging by this trend, East Africa will become an economic powerhouse facilitated by mobile money services.

Sources

The Financial Inclusion Tracker Surveys Project

www.cnbcafrica.com

www.newtimes.rw

The Prospects of the Laptop for Primary Schools Program

In this year’s budget, the Government has allocated approximately Ksh. 17.4 Billion for purchase 1.3 Million laptops for the next lot of class one pupils. Is this logical or an attempt to fulfill a promise made during a competitive presidential race? In fact, Education Cabinet secretary Jacob Kaimenyi is in a 130 Billion dilemma as teachers seek payment of enhanced allowances lest we face a prolonged national teachers strike. If this was not catered for in the budget allocation, the laptop for schools program is likely to be affected. This notwithstanding, the idea of improving access to technology at a tender age is well placed. With the changing times, technology has become a necessity rather than a luxury.

Back in 2006, a similar idea was mooted and named One Laptop per Child (OLPC) project. This project was supported by the Miami-based One Laptop per Child Association (OLPCA) and the Cambridge-based OLPC Foundation (OLPCF), two U.S. non-profit organizations set up to oversee the creation of affordable educational devices for use in the developing world. The project was originally funded by member organizations such as AMD, Chi Mei, eBay, Google, Marvell, News Corporation, Nortel, Red Hat, and Quanta. To enhance access to technology for pupils, the laptops were sold to Government for distribution to schools. With the aim of reducing the cost, the laptops had less code than other computers; however, the goal of providing a $100 laptop is yet to be achieved. By 2011, approximately 2 Million laptops had been sold all over the world. In Africa, 5,000 were sold to Ethiopia, 2,000 to Ghana, 20,000 to Rwanda, 5,000 to Sierra Leone, 650 to South Africa and 200 to Mozambique. This is a drop in the ocean compared to the 1.3 Million that Kenya has tagged as her goal. Coupled with logistical challenges, OLPC has had managerial and contractual problems. 

Laptops have great benefits if used in schools. First and most important benefit is that children like them, serving as a great motivation for pupils to go to school and learn. It also allows pupils to carry out independent research and obtain more information than that shared by their teachers. Teachers need to exercise caution though, because the laptops can easily end up as toys rather than productive learning tools. There are many applications available for pupils to play with and can easily be derailed. Educational content needs to be developed and probably instill restrictions into the applications or content a pupil can access. An e-learning program with weekly mandatory quiz is certainly a measurable way of monitoring the use of laptops. Another benefit is equitable access of educations resources, bridging the ‘digital divide’.

Pupils in urban metropolis such as Nairobi have better access to educational content in comparison to remote areas such as Turkana. With access to digital content, say via the Internet, both parties will have equal access to the content. Considering the amount of funds that go into buying textbooks, a laptop is a cost effective investment for all the books you will ever need. This means that funds allocated to buy books and set up libraries can be utilized elsewhere. Laptops would provide an interactive way of delivering content. For instance, 3D models or video clips could be used to elaborate a volcanic eruption and the consequent formation of mountain. The pupils will have a better understanding of the concept and find it easier to remember.

The main disadvantage of laptops to schools is the high risk of loss. It’s inevitable that the laptops will be stolen or lost, thus a percentage of the devices may not reach the intended user or will be lost soon after. Where are the laptops stored after school? Who takes care of the laptops during a break? The distribution and inventory management can also be a logistical nightmare. Ironically, most often than not, such inventories are done manually despite the fact that there is distribution of laptops! Another disadvantage or challenge is the requirement of IT personnel or at least trained teachers for IT support. The pupils will need help in connecting to the Internet, installing applications, updating anti-virus and so on. The other disadvantage is the repair and maintenance cost, this might actually trigger a higher cost than anticipated. Replacing of laptop parts can sometimes be very costly.

In the meantime, Microsoft, British Council, Intel and World Vision have started a project dubbed 'spark a child's digital future' that will also cater for teacher training and technology infrastructure set up in select schools within the country. The project is said to cost 180 Million Kenya Shillings and will provide professional training to up to 20,000 teachers starting with Western Kenya. The Government is also considering computer labs with desktops in place of laptops for the schools. Bearing in mind that some schools lack electricity supply, the immediate task to Government is to roll out electricity supply to all the primary schools in the country. Laying of this infrastructure will be beneficial to the surrounding community as well.

Red Light Cameras In Town To Curb Traffic Accidents

Globally, the traffic accidents are ranked ninth among the major causes of mortality and disability. According to the Global Status Report on Road Safety by World Health Organisation (WHO), India has the highest number of road accidents in the world with over 130,000 deaths annually. Similarly, here in Kenya, police records on accidents for the last three years from January to July paints a rather grim picture on how Kenyans are massacred on the roads. For the seven-month period in 2011, 2012 and 2013, a total number of 1,749, 1,719 and 1,741 people died respectively. Road accident injuries account for most of the critical cases in Kenyan hospitals. In essence, there are immeasurable economic and emotional costs to the families of victims, especially those that lose their bread winners.

Two of the most popular causes of road accidents are over speeding and non-adherence to the road signs and traffic lights. In an effort to reduce accidents, the Kenyan government introduced mobile traffic courts, made of tents on the roadside, in which magistrates penalize traffic offenders on the spot. Recently, the Nairobi City County Executive Committee member in charge of Roads, Public works and Transport Evans Ondieki announced that the county government had mounted traffic cameras that have the capability to capture a traffic offender’s face and numbers plate when he or she flouts the traffic rules. The offender will receive a notification of the crime committed and the consequent fine to be paid. If the fine is not paid within a specified period, a warrant of arrest is issued. The project has been funded by World Bank at a cost of Kshs 400 Million and will spread to the residential areas for security purposes.

In the traffic engineering, the cameras that have been installed a known as red light cameras. A red light camera is a traffic enforcement camera that captures an image of a vehicle which has entered an intersection against a red traffic light. Generally the camera is triggered when a vehicle enters the intersection after the traffic light has turned red. Details that may be recorded by the camera system and later presented to the vehicle owner include the date and time, the location, the vehicle speed, and the amount of time elapsed since the light turned red and the vehicle passed into the intersection. The event is captured as a series of photographs or a video clip, or both, depending on the technology used, which shows the vehicle before it enters the intersection on a red light signal and its progress through the intersection. Law enforcement agency would then use these images as evidence in a court of law.

Despite the obvious dislike of the cameras by most drivers, there are some actual benefits of red light cameras. With an overworked police force, the traffic department is definitely one of the beneficiaries. Another benefit to the police force is that they are able to locate criminals who for instance are racing from a crime scene. The main disadvantage of these systems is that there are expensive to deploy and maintain, and only that you and I have to pay higher taxes. The other one is that the citizens are under constant watch; this can be dangerous information if it got to the wrong hands. There are times when the equipment malfunctions or has significant error margins. Probably, by the time it is discovered you will have already paid the fine.

In the US, the red light cameras are common but they have some history in other parts of the world. Netherlands-based Gatso presented red light cameras to the market in 1965, and red light cameras were used for traffic enforcement in Israel as early as 1969. In the early 1970s, red light cameras were used for traffic enforcement in at least one jurisdiction in Europe. Australia began to use them on a wide scale in the 1980s. As of July 21, 2010 (2010-07-21)^[update], expansion of red light camera usage in Australia is ongoing. In some areas of Australia, where the red light cameras are used, there is an online system to check the photograph taken of your vehicle if you receive a ticket. Singapore also began use of red light cameras in the 1980s, and installed the first camera systems during five years, starting in August 1986. In Canada, by 1998, red light cameras were in use in British Columbia and due to be implemented in Manitoba. In Alberta, red light cameras were installed in 1999 in Edmonton and in 2001 in Calgary. The UK first installed cameras in the 1990s, with the earliest locations including eight rail crossings in Scotland where there was greatest demand for enforcement of traffic signals due to fatalities.

Credit

www.wikipedia.org

www.who.int

Using Drones Away From a Warzone

Most people would associate drones, otherwise known as Unmanned Aerial Vehicles (UAVs), with a warzone. Their use has been changing continuously into activities that affect our daily routines. In fact, they could be affecting you more than you realize. Beyond the warzone, drones are now used for aerial surveying of crops, acrobatic aerial footage in filmmaking, search and rescue operations, inspecting power lines and pipelines, and counting wildlife, delivering medical supplies to remote or otherwise inaccessible regions, transport medicines and vaccines, and retrieve medical samples, into and out of remote or otherwise inaccessible regions. Drones are gaining popularity in aerial filming services for TV, Film and Web. Your favourite commercial could be as a result of this technology. Further afield, the Amazon CEO Jeff Bezos shocked the world when he announced that Amazon is working on drones that can deliver packages within 30 minutes. He called the service Amazon Prime Air. An Australian textbook rental startup Zookal will also begin utilizing drones to make its deliveries in Australia in 2014, with ambitions of bringing the unique, unmanned delivery method to U.S. customers by 2015. Wonder if Rupu is working on something for the Kenyan market? 

On a greater scale, journalism has certainly taken an interesting turn with the use of drones. One recent instance was the coverage of the Typhoon Haiyan in Tacloban, the Philippines, by a British journalist, Lewis Whyld. The demonstrations in Bangkok, Thailand were most coverage using UAVs, giving aerial view of the events to the rest of the world. Probably, the most memorable one was the coverage of the demonstrations in Egypt by freelance journalists who uploaded their clips on YouTube. The BBC used a drone to gather information for a report on a high-speed train planned to travel from London to Manchester. The Associated Press and News Corporation have used them to show the scale of large disasters. News Corporation has also used them to shoot sports in Australia. Sophisticated nature documentaries use them to get intimate shots of wildlife. Paparazzis use them to chase celebrities in Europe, and reports suggest they have been used to pursue celebrities in the United States, too. 

How do drones work? These devices are controlled by a remote pilot from the ground and are fitted with a camera head which has a unique anti-vibration bracket resulting in clean video with no vibration or shake. Its flight is controlled either autonomously by computers in the vehicle or under the remote control of a pilot on the ground or in another vehicle. The typical launch and recovery method of a drone is by the function of an automatic system or an external operator on the ground. They are usually deployed for military and special operation applications, but also used in a small but growing number of civil applications, such as policing and firefighting, and nonmilitary security work, such as surveillance of pipelines. 

There will be several advantages of using drones. If  Amazon's plan to deliver packages using drones in place of trucks, the impact will be reduced fuel emissions and more use of renewable energy. The drones are battery powered, in comparison to oil, the providing an opportunity to use alternate source of power such as solar.   This delivery method will also increase efficiency by ensuring customer get their merchandise within 30 min. The downside to this is that there will be need for more manpower to load the drones, monitor and control them. In terms of journalism, the main benefit is that journalists are able to cover risky areas without endangering their lives. There has been a public outcry due to the infringement of people’s privacy by these devices and in some instances; news delivery in this method has lacked credibility. Quality of some images taken by drones has mostly been low and lacks a professional regulatory approach. Armature journalist can easily obtain the technology, cover an incident and upload on YouTube. There is dire need to regulate these devices and the popularity grows.