Mobile Cellular Phone Revolution in Africa Heloise Emdon, February 2010, Ottawa

History of Acacia 1996 – 2001 Demonstration projects Recognition of constraints Affordability, Education Focus on policy Shift towards networks Acacia I Acacia II Acacia III Strong networked approach Increased focus on policy change Integration ICTs across all sectors : CAD10.4m : CAD12m

Livelihoods improved

New ICT businesses

Cell phone banking: mPesa model Client SMS Agent Cash mPesa Cash form mPesa admin Fees & Admin Safaricom Profits

M-health Decisions Support Applications CommCare uses OSS JavaRosa

RIA Household Study n:20 000

ICT Density in 2007

Percentage of Income on Mobiles % of income spent on mobile compared to OECD averages of around 5%

Mobile pricing Research ICT Africa

Mobile Phone users Average monthly WTP for mobile expenditure of non-users that would be interested in getting a mobile phone - R (US$ 4.40)* N-households: Research ICT Africa

Benchmarking study influence policy An interconnection research can be imparted to policy makers to improve the day-to-day lives of people, but also that very real regional rivalries can be a trigger for policy change in Africa.

Policy barriers and hindrances in effective telecom regulation 1.Inefficient operators 2.Information asymmetry between regulator and operators 3.Regulatory failure: Dealing with competing interests of consumers and Enterprises investors Storke and Vetter (2009)

M-banking the Unbanked – RIA study Research ICT Africa

Comparison of the share of individuals with bank accounts and with mobile phones Research ICT Africa

Why do you not have a bank account?

Household receiving money from another household Research ICT Africa

Household sending money to another household Research ICT Africa

Airtime Transfer Research ICT Africa

What factors would make you prefer sending or receiving airtime rather than cash or transferring money via banks Research ICT Africa

Two Models cash-airtime convertibility and mobile wallets

YES! Cellular phones meeting needs BUT! Africa lags behind in more costly investments in fixed line and broadband infrastructure necessary to improve education, health and enterprise

ICT opportunity Index The Digital Guide to Digital Opportunities (ORBICOM)

Sub-saharan Undersea Cables in maybe (version 18) Steve Song: nypossib ilities,co m m3.static.flickr.co m/2462/ _78d 7b452a3.jpg

Investments planned for backbone Uganda Kenya Tanzania Ethiopia Burundi Sudan

Research ICT Africa Fixed Lines

World Growth Reportommit Conclusion 3%-4% of GDP but what was found in the high growth developing countries is that they consistently invested between 5-7% of GDP in infrastructure (amongst which is ICT infrastructure) and education (capabilities) were the countries that demonstrated sustained high growth

Questions Heloise Emdon Program Manager Acacia : ICT4D Africa IDRC Ottawa