An East African Highlight from the Information Economy Report (IER) 2011: Mobile Money

By Ashnah Kalemera

According to data from the IER 2011, the 51 mobile money deployments in Africa as of April 2011 are creating new opportunities for small businesses to access financial services. The real time money transfers and payment transactions are enabling small enterprises to better manage their cash flow and speeding up the delivery of goods and services.

Furthermore, the platform through mobile phones is proving an incentive for lenders to process and administer small loans to small businesses at low costs. Traditionally, MSEs are poorly served and extended credit by lending institutions.

Musoni, a Micro Finance Institution (MFI) in Kenya, is cited as the world’s first MFI to rely entirely on mobile money for both disbursement and collection.

Also in Kenya, Orange Money, fourth in a market dominated by Safaricom’s M-PESA, is offering mobile money services in partnership with Equity Bank. Orange’s Iko-Pesa is linked directly to a bank account and allows consumers to load and send money, and to deposit it and withdraw it into/out of their Equity bank account. In addition, customers are able to apply for, process and receive loans, via their mobile phones.

IER 2011 stresses that mobile money systems can be further tailored to suit the needs of small businesses. The challenges of interoperability across different mobile operators, security, transaction limits and cross border transfers can be addressed by governments enacting appropriate legislation and regulations. Acknowledging that developed countries have limited experience in mobile money systems policy design and implementation, UNCTAD recommends dedicated research and a “test and learn” approach. This way, governments and their central banks could observe market developments and evolve their laws and policies.

Here’s How Social Media Could Promote Democracy

By Ashnah Kalemera
Social media is fast becoming one of the major uses of the Internet. Wikis, blogs and other social networking sites such as Facebook, Twitter, and Youtube have been added to the Internet as enablers for developing, storing and disseminating instant information to audiences of people in diverse locations at a fairly low cost.
Social networks could potentially be used for a broad range of participatory activi­ties, such as demanding for public services like education and water, contacting leaders, political cam­paigns and discussions, and fighting corruption. They also could play a critical role in citizen engagement and advocacy, which have a major bearing on transparency and ac­countability in governance and the conduct of public affairs.
With growing numbers of Africans becoming internet users, monthly web information analysis by Alexa.com shows that there are a significant – and rising – number of users of social media on the conti­nent. Facebook, a social networking platform that allows highly interac­tive processes, claims that it has 750 million users, half of whom log on daily with the average user having an estimat­ed 130 friends.
In June this year, Alexa.com ranked Facebook the second most visited site in the world. The site was ranked the most popular for social networking in Egypt, Ghana, Ivory Coast, Kenya, Madagascar, Mauritius, Moroc­co, Nigeria and Sudan. In Algeria, Cameroon, Congo, South Africa and Uganda, Facebook was ranked the second most used website.
Twitter, another social networking and micro blogging service with instant dissem­ination of up to 140 character strokes, has also greatly attracted citizens and policy makers on the continent. Ranked the 9th most popular so­cial networking website globally by Alexa.com, it was widely used by South Africans, Nigerians, Kenyans and Ugandans, taking 7th or 8th posi­tion of these countries’ internet traffic.
Overall, users of social networking sites form a network that provides a powerful means of sharing, organising, and finding con­tent and contacts. Citizens, with the capacity to undertake independent analysis of issues, form opinions and influence others, and can lever­age on social media for policy engagement. This engagement can be with other citizens as well as with their leaders. For instance, admin­istration complaints can be made more easily by directing them to public institutions’ Face­book accounts or by mentioning them on Twit­ter.
For governance in particular, infor­mation flow through the smooth collaboration of information providers could help in over­coming various institutional problems such as graft. Citizens’ and governments’ use of so­cial media platforms translates into becoming bound to one another through exposure to a common class of problems, pursuit of joint so­lutions and thereby embracing ‘change’. With more and more applications being developed by individuals and groups, social media stands to become even more interactive, far-reaching and viral.
However, most African governments have not taken significant steps toward making the use of social media and net­works within administrations official and widespread. In fact, the policy environ­ment remains un-conducive with most government Internet related regulations aimed at protecting political interests at the expense of enabling citizen partici­pation.
Ultimately, the prospects and po­tential of social media remain anchored in the complexity that is the socio-economic, technological, political and cultural environment. Access to the in­ternet, ability to effectively use diverse media tools, as well as time and security issues and citizens’ knowledge of how best to use the mediums, will determine how much civic participation, transpar­ency and efficient public service delivery can thrive via the social mediums available.
Although social media networks are unlikely to replace traditional policy and gov­ernance processes in Africa, it is un-doubtable that they can effectively contribute to mean­ingful citizen motivation, sensitisation, educa­tion, mobilization and ultimately, influence. What is required is for governments to lever­age on these technologies in service and infor­mation delivery.

Tanzania Should Support Its Netizens

By Lillian Nalwoga
Tanzanian citizens are increasingly using social media networks to share information and, to a lesser extent, demand more transparency in the con­duct of public affairs. But there are concerns about the apparent intolerance by Tanzanian authorities of online activity deemed critical of the government.
For over 40 years, Tanzania under the Chama Cha Mapinduzi (CCM) party has enjoyed political sta­bility and national unity more than most of the coun­try’s neighbours. However, the October 2010 election won by incumbent president Jakaya Kikwete saw CCM’s popularity slide from 80.2% of the vote in December 2005 to 61.2%.
This decline seems to have brought with it a worrying intolerance for critical media, both online and offline. Journalists have been intimidated and harassed by state officials for questioning the government’s democratic credentials. Some political and social demonstrations have been repressed. To fight this new authoritarianism, several Tanzanians, including politicians, have resorted to social media to express their views.
The country has laws that seem to improve citi­zens’ rights to information and the freedom of expression, parts of the legislation are restrictive. Article 18 of the Tanzanian Constitution for instance guarantees the right to freedom of expression, and to seek, receive and impart information. These constitutional guarantees are insuffi­ciently implemented in the Tanzanian domestic legislation. Besides, the government has been implicated in attempts to block websites and weblogs whose content it perceives as a threat.
Despite the above scenario, Tanza­nian web forums such as Jamiiforums serve as citizens’ channels to comment on key issues such as cor­ruption. The website editors have been interro­gated on numerous occasions over issues that government has considered sensitive informa­tion. Unconfirmed reports have also surfaced that the Tanzanian government is attempting to clone these forums to portray information that befits it.
Social media has also played a part in sharing vital information about sensitive topics in Tanzania. Such a case was the Gongo la Mbo­to blasts that killed over 20 people and injured at least 184 people in the Dar es Salaam army base in February 2011.
Although army officials declined to discuss the cause of the blasts, netizens cap­tured events of the blasts by uploading and sharing photos of victims. Tanzanian twitters using #BombsInDar shared information about the possible causes of the blast while calling on government to investigate their cause. The netizens demanded the resignation of the Min­ister of Defence, a call supported by the coun­try’s opposition.
This rise in use of social media can perhaps be attributed to the growth in internet penetration from 5% in 2005 to 11% in June 2010 (Tanzania Communications Regulatory Authority statistics). In addition, there are 21 million mobile phone subscribers.
The Tanzania government needs to make information more accessible to the pub­lic for transparency and accountability, as well as to invest in infrastructure, literacy, policy and regulatory frameworks to boost internet usage in empowering citizens.

What’s Driving The Social Media Rage in Africa?

By Ashnah Kalemera
In recent years, web 2.0 technologies (such as wikis, blogs, and social networking sites) have been added to the effectiveness of the internet as an enabler for developing, storing and disseminating information to large audiences of people in diverse locations, instantly, and at fairly low cost.
And, as a three months web information analysis has recently found, there are a significant – and rising – number of users of web 2.0 technologies in Africa.
Wikis are conversational technologies with broad knowledge management capabilities that employ an unconventional knowledge creating and sharing paradigm where there is no cast-in-stone circle of authors. Rather, the knowledge creation process is incremental.
Whereas wikis have been hailed for revolutionising the information age (for instance, Wikipedia has within a few years become the world’s largest Open Content project achieving millions of articles and outnumbering all other encyclopedias), they have also been faced with criticism of the validity of their information.
Amongst internet users, Wikipedia is the 8th top site in the world. In Africa, it is most popular in South Africa and Madagascar, ranking 6th and 7th respectively.
Being edited by everyone capable of doing so, the validity of wikis depends on the knowledge of who does the editing, as well as on the more frequently visited subject matters that are continuously improved and commented upon. Moreover, some wiki pages that are not visited at all lack combined knowledge contributions and thus may not be accurate or may be speculative.
The social networking site Facebook to date has 500 million active users. Half of them log in daily and the average user has 130 friends in use. It is ranked the 2nd most visited site in the world. Amongst African countries, it is either the number 1 [9 countries] or number 2 [5 countries] most used website.
Users of social networking sites form a network that provides a powerful means of sharing, organising, and finding content and contacts.
Blogs (online diaries maintained by an individual with regular entries of commentary, descriptions of events or material, graphics and video) are popular too. They combine text, images, links and other media and also allows interactivity by way of comments. According to Alexa.com traffic figures, Blogger is the fifth most popular website in the world. On the African continent, it is the 5th most popular in Nigeria, 6th in Kenya and 8th in Uganda, Mauritius and South Africa.
Twitter, a social networking and micro blogging service that utilises instant messaging, or a web interface is the 9th most popular website globally. South Africans, Nigerians, Kenyans and Ugandans are at par with the rest of the world; ranking 7th – 8th of their internet traffic.
Table 1: Website traffic rankings (Source: www.alexa.com)

Facebook Twitter Blogger Wikipedia
Algeria

2nd

49th

9th

12th

Cameroon

2nd

51st

23rd

9th

Congo

2nd

11th

12th

9th

Egypt

1st

23rd

7th

22nd

Ghana

1st

15th

12th

10th

Ivory Coast

1st

34th

26th

10th

Kenya

1st

8th

6th

7th

Madagascar

1st

39th

11th

7th

Mauritius

1st

16th

8th

7th

Morocco

1st

34th

9th

13th

Nigeria

1st

8th

5th

9th

South Africa

2nd

7th

8th

6th

Sudan

1st

54th

8th

20th

Uganda

2nd

10th

8th

9th

Clearly, web 2.0 technologies allow for more efficient and speedier generation, exchange, sharing and modification of multimedia content.
The key features of the interactive, online media, that often make them popular with users include their interactivity (users may communicate on a many-to-many reciprocal basis); and they are a global network as communication is not fettered by nation-state boundaries. Besides, there’s free speech as internet users may express their opinions with limited state censorship; and they enable free association since net users may join virtual communities of common interest. But do these advantages explain why social media has caught a fire in Africa?