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Texting For Cheaper Marketplace Food With SokoText

By David South, Development Challenges, South-South Solutions

New UNOSSC banner Dev Cha 2013

SOUTH-SOUTH CASE STUDY 

An international group of graduate-social entrepreneurs from the London School of Economics (LSE) is pioneering a way to reduce food prices in Kenya using mobile phones.

Answering a call to action to address global food insecurity by the Hult Prize (hultprize.org), the team members looked at how they could make food cheaper for urban slum dwellers.

The Hult Prize, funded by Swedish educational entrepreneur and billionaire, Bertil Hult, is a start-up accelerator for budding young social entrepreneurs emerging from the world’s universities. The winner receives US $1 million and mentorship to make their idea become real.

SokoText (sokotext.com) (soko means market in Swahili) uses SMS (short message service) messages from mobile phones to empower vegetable sellers and kiosk owners in slums when it comes to bargaining the price for wholesale fresh produce. SokoText makes it possible for them to benefit from bulk prices by pooling their orders together every day. Usually vendors lack the funds to buy in bulk and have to make numerous time-consuming trips to the centre of Nairobi to buy stock.

SokoText reduces the price of fresh produce by 20 per cent for kiosk owners by buying the produce earlier in the supply chain. SokoText then delivers the food to a wholesale outlet at the entrance to the slum.

This approach makes available a wider range of produce and reduces the price. And best of all, it will knock down prices for the poorest people and enable them to buy more food and better quality food.

The team behind SokoText come from a variety of countries – Colombia, Canada, Kenya, Britain and Germany.

Hatched at the LSE, the enterprise prototyped its service in Mathare Valley, Nairobi, Kenya for four weeks during the summer of 2013 with 27 users and began the second phase of testing in November 2013, working with a local NGO, Community Transformers (https://www.facebook.com/pages/Community-Transformers-kenya/119937408165671).

According to SokoText, slum dwellers spend on average 60 per cent of their daily budget on food.

Mobile phones can be transformative since they are now a common communications tool, even in slums.

On the SokoText website, respected blogger and commentator on technology in Africa, Erik Hersman (http://whiteafrican.com/about/), calls it “a fantastic low-tech approach that could really scale for decreasing the inefficiencies in urban slum markets.”

SokoText’s 21-year-old co-founder and chief executive, Suraj Gudka, explained the genesis of the project to news and technology in Africa website, 140Friday.com.

“From our research, the Mama Mboga (small-scale vegetable retailers) spend between 150 and 200 Kenyan shillings (US $1.70 and US $2.3) daily, about 25 per cent of her revenue, to buy her stock, and since they do not buy in bulk they [she] get their goods at a higher price.”

Getting the market traders to cooperate is very difficult, Gudka found, because competition is fierce and trust is low. SokoText sees itself as a solution to this situation. By encouraging bulk buying by way of the SMS text service, there is no need to build trust between the traders before the produce is purchased.

“To use our service, the interested retailers would be required to send us an SMS every evening detailing what they need,” said Gudka, “and then we will source the produce and they come pick it up from us the next morning. In this way they do not have to incur the additional costs of transporting their goods and it also saves them time.”

SokoText is being incubated at the Nailab (nailab.co.ke) in Nairobi, a startup accelerator that offers a three to 12 month entrepreneurship program, with a focus on growing innovative technology-driven ideas.

SokoText’s summer pilot test confirmed taking the orders can work but found getting the product to the market in time was difficult.

The next step will be to set up a presence in the Mathare slum.

“We will be selling about seven to 10 different kinds of produce, and from our calculations, according to our projections for how much the Mama Mbogas buy every day, we hope to get  40-50 customers within three months,” Gudka said.

Resources

1) SokoText: The website explains further how the service works. Website: sokotext.com

2) Hult Prize: The Hult Prize Foundation is a not-for-profit organization dedicated to launching the world’s next wave of social entrepreneurs. It encourages the world’s brightest business minds to compete in teams to solve the planet’s biggest challenges with innovative ideas for sustainable start-up enterprises. Annual Hult Prize winners can make their ideas reality with the help of US $1 million in seed funding. Website: hultprize.org

3) White African: Where Africa and Technology Collide! Website: http://whiteafrican.com/about/

4) Nailab: Nailab (Nairobi Incubation Lab) is a startup accelerator that offers an entrepreneurship program focusing on growing innovative technology driven ideas. This is done through providing business advice, technical training and support, professional mentoring and coaching, giving access to market and fostering strategic partnerships as well as linking them to investors. Website: nailab.co.ke

By David South, Development Challenges, South-South Solutions

Published: December 2013

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.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=hPNcAwAAQBAJ&dq=development+challenges+december+2013&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challenges-december-2013-issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

SokoText co-founder Sofia Zab (left). She oversees SokoText’s marketing strategy and manages SokoText’s technology products.

This work is licensed under a Creative Commons Attribution 4.0 International License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2021

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Carbon Markets Need to Help the Poor

By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

The global carbon credit trading schemes emanating from the Kyoto Protocol have created a multi-billion dollar market – the global carbon market was worth US $30 billion in 2007 (World Bank) – and represents one of the fastest growing business opportunities in the world. The bulk of this trading is with the European Union’s emissions trading scheme, some US $25 billion. But the big problem to date has been most of this investment is enriching stock brokers, and not the poor.

And this is a huge opportunity missed, as some point out: “These numbers are relevant because they demonstrate that the carbon market has become a valuable catalyst for leveraging substantial financial flows for clean energy in developing countries,” according to Warren Evans, the World Bank’s director of environment.

And the way to do this is through the Clean Development Mechanism (CDM) – where wealthy countries can meet their greenhouse gas targets by investing in clean energy projects in the South. But so far, it has been criticised for spending 4.6 billion Euros on projects that would have cost just 100 million Euros if implemented by development agencies.

But if done right, the CDM could become directly beneficial to the so-called Bottom of the Pyramid (BOP) – the four billion who live on less than US $2 a day. The CDM allows developed countries to offset their greenhouse gas emissions by paying projects targeting the poor to develop clean energy, or to create what are called carbon sinks (planting trees for example), to cut global emissions.

One mechanism to make all of this work is the CDM Bazaar: officially launched in September 2007, it is about linking together buyers and sellers. This is a place where people with business ideas or projects can go for start-up funding. It is also a place to share information, contacts and learn about how to tap the market.

And two Southern innovators are showing what can be achieved by tapping the power of the sun to help the poor.

One such initiative In India, owned by Mr. Deepak Gadhia and Dr Mrs. Shirin Gadhia, is targeting the 63 per cent of the BOP market that is with rural populations. All of these people need affordable and clean energy if their lives are to improve: most currently use firewood and kerosene for cooking and heating. The company Gadhia Solar is building and selling solar steam cook stoves in rural villages. The giant solar dishes which resemble satellite TV dishes, can fry and roast using the sun and come in Do-it-Yourself kits. The enormous silver dishes beam concentrated sunlight on to a black plate on the oven, reaching temperatures of over 450 Celsius.

In Morocco, the company Tenesol, an electric supply co-operative society, is using solar power to bring electricity to 60,000 poor households in 29 provinces. And it is making Morocco a world leader in the use of solar for rural electricity.

Each house is equipped with a solar home system comprising a solar panel, battery and controller. It is powerful enough to light four to eight lamps, and support a television, radio or mobile phone charger.

Customers pay a connection fee of US $80, and then a monthly service fee of between US $7.50 and US $17.50. The fee competes well with what rural households were spending on candles and batteries.

The initial outlay for equipment is mostly paid for by investors, with the hope that the money will be made back on the service fees.

Tenesol hopes to bring electricity to 101,500 households, and also wire them up and provide light bulbs.

Resources

  • More on emissions trading: Click here
  • UNDP has produced a free users guide introduction to the Clean Development Mechanism.
    Website: http://www.undp.org/
  • South South North has also produced a Practitioners’ Practical Toolkit.
    Website: http://www.cdmguide.com/

By David South, Development Challenges, South-South Solutions

Published: March 2008

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.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=DqmXBgAAQBAJ&dq=development+challenges+march+2008&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsmarch2008issue-44443163

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

This work is licensed under a Creative Commons Attribution 4.0 International License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2021

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Southern Innovator Magazine

Estimated Reading Time: 2 mins

Southern Innovator was initially launched in 2011 with the goal of inspiring others (just as we had been so inspired by the innovators we contacted and met). The magazine seeks to profile stories, trends, ideas, innovations and innovators overlooked by other media. The magazine grew from the monthly e-newsletter Development Challenges, South-South Solutions published by the United Nations Office for South-South Cooperation (UNOSSC) since 2006.

Issue 6’s theme has been decided on: it will focus on Science, Technology and Innovation. For this issue, Southern Innovator is seeking invitations from cutting-edge knowledge and science innovators in the global South to view their work. Time is tight, so don’t miss this opportunity to let the whole global South know about your work. In the past, Southern Innovator has visited green pioneers in Cuba, a smart city in South Korea and an eco-city in China.

Contact me if you wish to receive a copy/copies of the magazine for distribution. Follow @SouthSouth1.

Southern Innovator Issue 1

Southern Innovator Issue 2

Southern Innovator Issue 3

Southern Innovator Issue 4

Southern Innovator Issue 5

Southern Innovator Issue 6

Innovator Stories and Profiles

Citing Southern Innovator

Finding Southern Innovator

Press Release 1

Press Release 2

Press Release 3

Southern Innovator Impact Summaries | 2012 – 2014

“The e-newsletter Development Challenges, South-South Solutions proved to be a timely and prescient resource on the fast-changing global South, tracking the rise of an innovator culture driven by the rapid adoption of mobile phones and information technology …

“In 2010, work began on the development of the world’s first magazine dedicated to the 21st-century innovator culture of the global South. My goal was to create a magazine that would reach across countries and cultures, meet the UN’s standards, and inspire action. Southern Innovator was the result. Mr. [David] South played a vital role in the magazine’s development from its early conception, through its various design prototypes, to its final global launch and distribution.

“Both the e-newsletter and magazine raised the profile of South-South cooperation and have been cited by readers for inspiring innovators, academics, policy makers and development practitioners in the United Nations and beyond.

“I highly recommend Mr. [David] South as a thoughtful, insightful, analytical, creative and very amicable person who has the unique ability to not only grasp complex problems but also to formulate a vision and strategy that gets things done. … ” Cosmas Gitta, Former Assistant Director, Policy and United Nations Affairs at United Nations Office for South-South Cooperation (UNOSSC) in UNDP

“I think you [David South] and the designer [Solveig Rolfsdottir] do great work and I enjoy Southern Innovator very much!” Ines Tofalo, Programme Specialist, United Nations Office for South-South Cooperation

Team | Southern Innovator Phase 1 Development (2010 – 2015)

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2021

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The Power of the Word: African Blogging and Books

By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

“Culture is not a luxury … Culture is the spiritual backbone of society”: with these words Jan Kees van de Werk, the Dutch poet and long-standing advocate of African literature, summed up the importance of culture to Africa’s development. Two trends could significantly alter the prospects for African writers in 2007: the new wave of African bloggers and websites that are now emerging, and the increasing awareness of African literature. More traditional writing is now being joined in 2007 by a surge in African blogging. As internet access has increased, and awareness of free blogging websites like WordPress has also shot up, Africans are jumping online to express themselves (see also Development Challenges, March issue).

African literature is gaining an ever-greater audience through high-profile prize-winning. From veteran Nigerian writer and UNFPA Goodwill Ambassador Chinua Achebe winning this year’s Man Booker International Prize, to best-selling French language authors like Ivorian Ahmadou Kourouma (Allah is not Obliged) and Albert Memmi, winner of the French Academy’s Grand Prix de la Francophonie. They are joined by many others gaining international acclaim, including Uganda’s Monica Arac de Nyeko – winner of the prestigious Caine Prize for African Writing – Nigeria’s Chris Abani (Graceland), Cameroon’s Calixthe Beyala (Lost Honor), Congolese writer Daiel Biyaoula (Alley Without Exit) and Mauritius’s Carl de Souza. The Salon International du Livre et de la Presse de Geneva has established the Ahmadou Kourouma Prize, and the new Book Show for African Literature, Press and Culture is scheduled for 2008.

Increasingly, the creative industries are gaining respect as a key part of a vibrant economy. The power of a successful author or musician to generate awareness and excitement about a country and its products, has gained the respect of many governments. And they are also learning to respect the wealth that can be generated. For example, in Britain the creative industries earn almost as much as the powerful financial sector (Work Foundation). The World Bank’s private sector arm, the International Finance Corporation, has singled out Africa’s creative sector for its future investment.

Blogger Titilayo Soremi in Abuja, Nigeria, is typical of the new wave. A business development officer for an NGO, her blog is a vivid snapshot of life in her country. Obed Sarpongin Accra, Ghana is a budding poet and does not shy away from thorny issues. In his current blog, he tackles domestic politics and writes about the on-again, off-again electricity supply. The secretive Kenyan banker known by the name Bankelele is a lover of new ideas judging by his blog. The content is a mix of financial tip-offs and upcoming business investment opportunities in the region, all stirred up with some rather frank thoughts on politics. He has also gone the extra mile and acquired sponsors for his blog (that banking experience is not going to waste).

The Internet age has also given birth to a new phenomenon: the so-called ”long tail” This is best explained by Kelvin Smith in his paper ‘African Publishers and Writers in British and International Markets’: “What now emerges is that more than half the revenue of Amazon is in the ‘bottom’ two million books on the list.

“So, the ‘Long Tail’ principle goes, we are now looking at a technology that can service the needs not of dozens of markets of millions, but millions of markets of dozens. This has great significance for the small publisher, whether that publisher is in a large publishing nation or in a country where publishing is a smaller scale activity.”

It looks as if getting creative is not only fun, it can be the next goldmine for Africa’s entrepreneurs.

Resources

Published: August 2007

Creative Commons License

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Update: There is no better proof of concept than impact.

“Great economic and business reporting! Very helpful for us.” Africa Renewal, Africa Section United Nations Department of Public Information

The story Nollywood: Booming Nigerian Film Industry, from UNDP e-newsletter Development Challenges, South-South Solutions, cited in Innovation Africa: Emerging Hubs of Excellence edited by Olugbenga Adesida, Geci Karuri-Sebina, Joao Resende-Santos (Emerald Group Publishing, 2016).

Southern Innovator was published from 2011 to 2015 by the United Nations.

Team | Southern Innovator Phase 1 Development (2010 – 2015)

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2021