“What a tremendous magazine your team has produced! It’s a terrific tour de force of what is interesting, cutting edge and relevant in the global mobile/ICT space… Really looking forward to what you produce in issues #2 and #3. This is great, engaging, relevant and topical stuff.”
Rose Shuman, Founder & CEO, Open Mind and Question Box
I had the pleasure of visiting the printing plant to witness the presses rolling with the first issue of new global magazine, Southern Innovator. The magazine has been in careful development and saw its name evolve from Creative Sparks to Southern Innovator. As Shakespeare noted in his play Romeo and Juliet, “What’s in a name? That which we call a rose, by any other name would smell as sweet.” And it is what Southern Innovator is that counts the most.
This first issue is just the beginning of a process, a back-and-forth dialogue with our readers as we refine and improve the magazine to boost its impact. The first issue’s theme – mobile phones and information technology – was chosen because of the sheer dynamism of this area and some jaw-dropping achievements: the growth of mobile phone usage in Africa represents an unprecedented take-up of a new technology, often in some of the poorest places on the planet. That impresses and it seemed right to share information about the amazing people behind this phenomenon and the lessons they learned along the way. It has also become clear in the research behind the monthly e-newsletter Development Challenges, South-South Solutions (published since 2006), that significant future development gains will not happen without the aid of mobile phones and information technology, and, important to note, will need these tools to raise living standards for all the world’s people in an environment of increasing competition and pressure for resources.
Used right, mobile phones and information technology allow the efficient use of resources. But, as anyone who has worked with technology knows, this isn’t a given. Vast sums of money and time can be squandered if technology is not used intelligently, or lessons not learned from past failures. It is hoped Southern Innovator‘s first issue can contribute to a better use of resources, and by taking a broad look at what is happening out there, enlighten readers to new ideas, people and concepts.
Southern Innovator is designed in Iceland by Graphic Designer and Illustrator Solveig Rolfsdottir.
“Question Box was featured in Southern Innovator, a new publication of UNDP that profiles some of the most innovative ideas coming out of the global South. We were pleased to see many friends in the sector profiled as well, such as Ushahidi, Medic Mobile, and TxtEagle. Take a look at the magazine, as it is a great primer on ICT and mobile innovation from around the globe.”
United Nations e-newsletter Development Challenges, South-South Solutions visited the Berlin, Germany headquarters of start-up betterplace.org in 2009. It was the dawn of the Berlin digital tech boom.
Good ideas are plentiful, but how to fund life-improving projects has always been a thorny issue. Judging how effective a project is can also be fraught with debate and contention. Over the past two decades, the number of NGOs in the global South has exploded (http://lboro.ac.uk/gawc/rb/rb144.html). The best of them offer the local knowledge and understanding required to make development gains. But unlike NGOs in the North, many lack the powerful fundraising capabilities of the big global NGO brands.
An exciting new initiative based in Germany, but already featuring hundreds of projects from across the South, is using the power of the internet to directly connect projects and donors.
Joana Breidenbach, an anthropologist, author and co-founder of betterplace.org (www.betterplace.org), says NGOs are emerging in India and other countries of the South to challenge the big Northern global NGOs.
“Why wouldn’t you want to donate to these Southern NGOs? There are more entrepreneurs and local approaches which are better.
“Betterplace gives local institutions a platform to express themselves.”
Started in 2007, betterplace is an online marketplace for projects to raise funds. It is free, and it passes on 100 percent of the money raised on the platform to the projects. The foundation that runs betterplace supports its overheads by offering additional services that people can pay for if they wish. It works in a way similar to the online marketplace eBay (http://www.ebay.com): NGOs post their project, set up an account, blog about their achievements and successes and needs, and receive donations direct to their bank account when they come in.
Breidenbach points out up to a third of any NGO’s income is spent on fundraising. In Germany, that represents more than Euro 1.3 billion out of over Euro 4 billion in private donations – money that could have gone directly into the hands of the people needing help.
With betterplace, donators can surf through the projects and pick the one they want. Already, more than 100 large corporations trawl through betterplace seeking projects to fund to meet their corporate social responsibility (CSR) obligations (http://en.wikipedia.org/wiki/Corporate_social_responsibility).
“I find it very exciting to introduce a good and innovative NGO to a corporate sponsor,” Breidenbach said.
Breidenbach says betterplace’s ultimate goal is “to transfer the donation market online.” It hopes to change the rules in donation and charity in the same way blogs and the search engine Google changed the way people publish and search for information.
“This provides better transparency, feedback,” Breidenbach said. “Now (with betterplace) donors and organizations can cut out the middlemen. A lot of established organizations do not like this too much.”
Over the past decade, new concepts like social entrepreneurs and venture philanthropy have emerged to straddle the delicate line between social good and private profit. Betterplace joins this wave of new thinking about how to do development better.
In the 20 months since betterplace went online more than 1,500 projects have joined. They are now averaging between 20 to 35 new projects joining every week.
Betterplace is a simple open-plan office on the top floor of a Berlin warehouse beside the city’s Spree river. The small team (http://www.betterplace.org/about_us/team) work on laptop computers. A blackboard on the wall details in bright colours a running tally of the projects that have joined.
Breidenbach gives the example of a mother in Cameroon who is using betterplace to raise the school fees for her children. The mother blogs about the children’s progress and has been able to raise the fees for a year and a half.
“People are now directly connected to somebody in need.”
“Right now the functionality (of the website) does not allow people getting in contact publicly and we want to enable this knowledge transfer in 2010. If you want to build a well in Cameroon then you could search for the best technology and to contact other people who are doing similar projects to learn from them.”
Success on betterplace is by no means certain. “The experience of the project managers has been as varied as development work is – some have done really well, raising thousands of Euros over the website – others have received no funding at all,” Breidenbach said.
But betterplace provides tools to give the projects the best chance possible. “Projects can present their work, breaking it down in a transparent way (in order to let supporters know exactly what is needed for their realization), there are sound payment processes in place and project managers can give feedback through their project blog, supporters can download project widgets etc., all supplied free of charge.”
Breidenbach has other tips for making betterplace work for a project: post details in English when creating a profile, break down the project into much smaller, low-cost goals (few people are willing to make large donations) – this also has the advantage of receiving payments straight away when they are small. Tell a good story about the project, and try and use actual testimonials from the people affected. Blog and update regularly with photos and videos to keep people engaged. Also avoid copying and pasting text from a previous grant application.
“We have the numbers to show that projects which give regular feedback and have a lively web of trust receive more donations than others, which are not very active.”
“Don’t think you can just go on to betterplace and the money starts rolling in,” said Breidenbach.
The betterplace platform places all projects seeking funds on the same level, allowing individuals and small NGOs to compete equally with the big, branded global NGOs with their websites and sophisticated fundraising operations.
“All the big NGOs have their own websites,” continues Breidenbach. “But it is the small initiatives that often don’t have a website or know how to use Pay Pal etc. (http://www.paypal.com). We are very useful for smaller NGOs.”
“Another big advantage is that we are a real marketplace: whatever your interests (as a potential donor), you will find a project tackling this issue on the platform.”
But what about fraud and people seeing betterplace as a coin-making machine rather than a way to make the world a better place?
“We have a feeling for dodgy projects. We check the IP address. We have a number of trust mechanisms in place (and are currently working on enlarging them). Thus projects on betterplace can create trust through their good name … But we also include something which I would call network-trust: In our web of trust different kinds of stakeholders of an organization or a project have a voice and can publicly state what they think of it. Thus beneficiaries of a project can say if the project has done them good or has been counterproductive, people who have visited the project on the ground can describe what they have seen etc. … we hope to give a much denser and more varied impression of social work and give donors (a terribly badly informed group of people), the basis for a much more informed choice.
“If a contributor to a project is dissatisfied with the project’s outcome … she can either directly contact the project manager via betterplace, or openly voice her concern on the project page for other potential donors to see her views.”
For now, betterplace is still only useful to people who have access to the internet and have a bank account (necessary for the money transfers). But in the future betterplace hopes to have mobile phone interactivity and more features to expand who they can reach.
“We are also re-working our site to make it more intuitive and easier to use for people without computer skills,” Breidenbach said. “In the pipeline is also a knowledge backbone, enabling people to access knowhow about development and social innovation issues and exchange views and experiences. This will be very useful for projects in the South as so many people are working on the same issues without knowing about it. They could learn a lot from each other, without the “help” of the north.”
With internet broadband in Africa set to take off, according to the report Africa Connect: Undersea Cables to Drive an African Broadband Boom (http://www.pyr.com/downloads.htm?id=5&sc=PR090309_INSAME1.6), even more people will soon be able to make the most of initiatives like betterplace.
1) CSR Wire: This is a news service with all the latest news, reports and events and where companies announce their CSR (corporate social responsibility) programmes and how much they are contributing. A great resource for any NGO looking to make a targeted appeal for funds. Website: http://www.csrwire.com/
2) Alibaba: Alibaba.com is an online marketplace started in China but is now global. It allows businesses from all over the world to trade with each other, make deals and find funding. Website:http://www.alibaba.com/
Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP’s South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South’s innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.
Zimbabwe’s turbulent descent into hyperinflation at the beginning of the 2000s – and the food crisis it caused as prices soared and purchasing power shrank – captured the world’s attention. From refugees fleeing the country to widespread hunger and poverty, the impact of hyperinflation was stark and distressing. Since the country’s economy stabilized in 2009, various signals are showing that Zimbabwe is slowly making its way back to growth and stability.
The scale of the hyperinflation is summed up by Zimbabwe’s eye-popping inflation rate. By December 2008, inflation was estimated at 6.5 quindecillion novemdecillion percent (or 65 followed by 107 zeros — 65 million googol) (Forbes Asia).
One recovery strategy is emerging in Zimbabwe’s booming eating and drinking establishments. It seems the urge to socialize and network has become the source of economic vitality where so much else has been damaged.
The proliferation of coffee shops with wi-fi (wireless internet access) (http://en.wikipedia.org/wiki/Wi-Fi) has spawned a new, connected business culture that is flexible and entrepreneurial.
Zimbabwe’s unity government was formed in September 2008. By the beginning of 2009, the government relented on the crippling hyperinflation and allowed business to be conducted in the US dollar. This made it possible to save again and do business with greater predictability. At this time, the country had the world’s highest inflation rate and the central bank printed a 100 trillion Zimbabwe dollar note.
The economic result of greater stability has been new shopping malls opening and a boom in new eating and drinking establishments.
During the hyperinflation, eating out was the last thing on most people’s minds. Just surviving was the paramount daily task.
Outside of the wealthy enclaves, coffee shops have sprung up in the city’s art gallery, in sports clubs and a local supermarket chain.
While the coffees are still expensive relative to local wages, the Zimbabwe Online Hotspots (ZOL) (http://www.zol.co.zw) in the coffee shops have proved a big attraction. Most people in Zimbabwe have unreliable or non-existent electricity or, if lucky, poor-quality phone and internet dial-up in their homes.
ZOL Hotspots typically offer the first half hour of internet use for free. To surf longer, users must buy a voucher.
The damage done to the economy from hyperinflation and the political crisis means the country is still on the mend. But people have now resorted to what they call “networking,” according to Bryony Rheam in the Daily Telegraph newspaper. The functioning economy is all about making deals. And coffee shops with wi-fi are the perfect place to meet with a potential business partner.
But while the coffee shops are buzzing with people doing business, the proprietors still need to work out how to make better profits. Sales are still poor as people are mostly fixated on the wi-fi. One owner told the Telegraph: “We need to start charging people who sit here all day surfing the net.”
It is the restaurants who seem to be enjoying the boost in incomes and better spirits after the economic troubles. Zimbabwe’s black middle class are enjoying big occasions and celebrating with friends and family in restaurants.
“We went without for so long, that a lot of people almost see it as their right to spend money on eating out,” one patron told the Telegraph.
More good news has come from outside investors as well: Amstel Securities NV (http://www.amstelsec.com), based in Amsterdam, Netherlands calls Zimbabwe’s economy “the final frontier market in Africa”. It believes the country has the potential to grow its GDP (gross domestic product) to US $12 billion by 2015. The International Monetary Fund says the economy jumped from US $4.4 billion in 2009 to US $9 billion now.
In Amstel Securities’ report, it pegs the dollarization of the economy as the reason for stability: “These improvements have made Zimbabwe a much more vibrant economy with good further recovery potential.”
And these good vibes are contagious: it has been reported that the American hamburger chain McDonald’s is revisiting the idea of setting up in Zimbabwe. McDonald’s is currently present in a handful of African countries: South Africa has 132 restaurants.
Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP’s South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South’s innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.
How to increase the rate of innovation in Africa? And specifically, innovation that actually improves people’s lives and reduces poverty. It is a hard question to answer, but some are putting in place the building blocks of a 21st century innovation culture by riding the information technology revolution as it rolls across Africa.
The transformative story of mobile phones in Africa has captured the attention of the world. Technologies like mobile phone payment systems developed in Africa are now being rolled out around the globe.
But there is more to come as undersea cables increase the communications links between African nations and the rest of the world. New undersea cables including TEAMs, Seacom and Eastern Africa Submarine Cable System (EASSy) (eassy.org) are vastly increasing the continent’s Internet capacity and bandwidth (http://en.wikipedia.org/wiki/Bandwidth_%28computing%29).
These communications links will revolutionize the type and scale of innovation that can happen in Africa.
As websites like AfriGadget (afrigadget.com) amply prove, there is already an entrenched do-it-yourself innovation culture hard-wired into daily life on the continent. While impressively resourceful and able to make the most of often very little, this innovation culture is often confined to a narrow geographical area. And this is the difference the new information technologies will make: They will allow this energetic and resourceful innovators’ culture to develop businesses and business models that can reach beyond narrow geographical parameters.
New technologies will also accelerate the spread of new ideas and solutions.
Across the continent, ways and means are being stitched together that enable people to transcend borders and old divisions and obstacles to connect with like-minded collaborators, seek out funding and take ideas from dreams to schemes and eventually to continent- and world-straddling levels.
According to the Deloitte 2011 East Africa Private Equity Confidence Survey: Promising 2012, “Many investors see East Africa’s strong growth potential as a driver of better investment performance than in South Africa: This is a huge shift in private equity attitudes toward Africa, which have been historically focused on South Africa. East African investment potential is seen as roughly on par with West Africa, where similar growth dynamics are at play.”
Identifying the elements that are making this innovation culture flourish came under analysis in a recent post on the Afrinnovator website (afrinnovator.com). Afrinnovator is dedicated to “telling the stories of African startups, African innovation, African made technology, African tech entrepreneurship and entrepreneurs.”
While it is well known that new infrastructure, better governance, new policies, and new services like mobile phones and mobile money have made a big difference in shifting perceptions of Africa from despair to optimism, Afrinnovator found there were other key ingredients to this innovation renaissance.
Afrinnovator argues there are four elements that have come together to change circumstances for innovators on the continent: education, mentoring and incubators, funding, and showcase events.
Afrinnovator found education was critical to the quality of emerging technological innovations. Information and communication technology (ICT) education has moved from just computer science courses to a vast array of options, from bachelors degrees to masters programmes.
For mentoring and incubators, Afrinnovator found hubs and incubators are providing places for young educated people to go to and get down to work.
According to Business Daily Africa, “There are more than 3,000 software developers who have come up with both mobile and personal computer-based software applications that are changing lives across the continent.”
A transformation in funding access has seen a renaissance in new thinking that is transforming tech start-ups into viable businesses. Kenya has the Kenya ICT Board (http://www.ict.go.ke/) and it awards US $50,000 through its Tandaa grant programme (https://sites.google.com/a/ict.go.ke/tandaa/).
Because of this enthusiastic local support, the World Bank is now committing a US $55 million grant targeting Kenya’s technology innovators to be distributed through the Kenya ICT Board.
East Africa also saw 16 new investor funds launch in 2011 alone. They include early-stage investor funds like eVentures Fund Africa (eVA) (http://www.eva-fund.com/), which calls itself “the first venture capital firm investing in African SME’s active in digital media.” Another is Kenya-based 88mph (http://www.humanipo.com/88mph), with its “focus on startups targeting the East African mobile and web market.”
In Kenya, the World Bank money will be used to help technology developers bring to market simple solutions in health and education.
According to the World Bank (http://tinyurl.com/cm3g2rf), “Kenya has put in place the second-fastest broadband on the continent (after Ghana), which has reduced the wholesale internet capacity prices by over 90% and increased internet penetration from 3% to 37% of the population in the past decade. Today, about 90% of Kenyan adults have or have the use of a mobile phone.”
And the final game-changer, according to Afrinnovator, is “showcase events.”
These events give investors and potential partners the opportunity to meet start-ups and explore their new ideas.
Examples include DEMO (http://www.demo.com/ehome/index.php?eventid=29414&😉 – which connects the idea people with the money people – and Pivot East in East Africa (http://pivoteast.com/). Pivot East provides 25 technology entrepreneurs with the opportunity to make a pitch in front of investors. DEMO is working with USAID, Microsoft, Nokia and others to launch DEMO Africa in Nairobi, Kenya from 21 to 22 October 2012.
Afrinnovator concludes: “This is the last virgin tech landscape left on the planet. The best time to become a player in the African technology innovation ecosystem is now.”
Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP’s South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South’s innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.
Southern Innovator is designed in Iceland by Graphic Designer and Illustrator Solveig Rolfsdottir. 
David South Consulting 
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