This report was released last week about the mobile money service M-Paisa in Afghanistan. It provides some intriguing insights on lending issues faced by Afghans and the mobile banking services rapidly emerging in their country.

The product branded M-Paisa in Afghanistan was initially piloted by local operator Rashon in collaboration with Vodafone, to provide microloan disbursement and repayments for MFIs as well as a person-to-person money transfers. According to the M-Paisa website they offer safe, reliable and fast access to a range of financial services including:

  • Person to person money transfer.
  • Disbursement and repayment of microfinance loans.
  • Airtime purchases.
  • Merchant payments.
  • Disbursement and receipt of salaries.

With low levels of fixed bank infrastructure and rising mobile penetration, it seemingly appears that the cheap and secure features prominent in mobile banking would lead to a rapid adoption of its services in Afghanistan.

However, Rashon soon found that they faced numerous consumer barriers central to the service’s overall adoption in Afghanistan. With a population of 30 million people, 36% of who live below the government defined poverty line and 74% of who are illiterate; Afghanistan is the poorest country in the world outside Africa.

Therefore, textual, mobile and financial illiteracy was one of the largest hurdles that the company had to overcome.  Since consumers could not use SMS to transfer funds, Roshan developed an Interactive Voice Response (IVR) system in three languages, English, Dari and Pashto.

Other issues that the authors concluded was a general distrust of financial institutions that go against the well established Hawala agent network, and a commonly established distrust of non-tangible assets.  There was also a common “chicken and the egg” problem of investing in a branchless banking agent network without an adequate amount of customers—and customers less willing to try out the service—without there being a strong agent network. The authors of the report stated:

But M-paisa is caught in the tricky position that faces all services requiring network dynamics—to succeed, they must educate and nurture both consumers and agents, neither of which has much incentive to jump in first without the other being around.

The authors of the report, Jan Chipcase and Panthea Lee, traveled to Afghanistan in August 2010 to four different cities to explore traditional money and emergent mobile money practices in Afghanistan.  While in the field they conducted in depth interviews of three potential mobile customers and one M-Paisa agent, their main goal being to contribute to the knowledge base of the mobile money community.

They sought to build on research such as Portfolios of the Poor, which highlighted the strategies the poorest members of societies use to manage their limited resources, as well as the sector-galvanizing discussions led by the World Bank’s consultative Group for the poor and the GSMA’s Mobile Money for the Unbanked initiative.

Throughout the author’s studies, they concluded that with the growth in mobile penetration, the trust in service providers is also beginning to surface. Brand recognition and trust in Roshan and other service providers has been gradually expanding. Concurrent with the evolution of cell phones being a staple in Western society, the authors believe that M-Paisa have a great opportunity to transform Afghan society.

Just as mobile telephony isn’t as much about the phone as it is about the conversation, mobile banking is not about the money—it’s about what the money can enable.

EGdrought510An Egyptian rice farmer shows his drought damaged rice crop in a village near Balqis on June 14, 2008. REUTERS/Nasser Nuri 

LONDON (AlertNet) – For African farmers struggling to cope with increasingly erratic conditions linked to climate change, there’s good – and bad – news.

The good news is that in parts of sub-Saharan Africa, scientists can now issue reasonably reliable seasonal climate forecasts a month or more in advance of the planting season, giving growers a chance to opt for different kinds of crops or other measures to adapt to upcoming conditions.

That has the potential to improve food security in many climate-vulnerable parts of Africa, and reduce the impact on some of the world’s poorest people of droughts, floods and temperature surges.

The bad news is that those forecasts, and other historical weather information farmers need to judge risk and make good decisions, still are not reaching most growers, in part because meteorological data in many African countries is available only at a cost.

Weather information “is an essential resource for adaptation (to climate change) and development,” said James W. Hansen, a researcher on climate change, agriculture and food security at the Consultative Group on International Agricultural Research (CGIAR) and lead author of a new report on seasonal climate forecasting and agriculture in Africa.

But “as long as these (data) are seen as a revenue source for Met services rather than as a public good for development, the people who are most affected by climate change, climate variability and poverty won’t have much access to innovations,” he said in a telephone interview.

Growing climate variability is making life increasingly difficult for farmers throughout sub-Saharan Africa. Some areas, particularly in southern and eastern Africa, are seeing extended droughts and high temperatures that can make growing staples like maize a challenge. Other regions, including parts of West Africa, have struggled with extreme rainfall.

Altogether “dependence on uncertain rainfall and exposure to climate risk characterize the livelihoods of roughly 70 percent of (sub-Saharan Africa’s) population,” notes the study, published in the journal Experimental Agriculture in March.

SOME PREDICTABLE REGIONS

But scientists are getting increasingly good at predicting seasonal climate conditions in advance, largely because of growing understanding of how Pacific Ocean temperatures – linked to weather phenomena like El Nino and La Nina – influence rainfall in sub-Saharan Africa.

While it is still very difficult to predict seasonal conditions in some parts of Africa – including across the Sahara and the northern parts of the Sahel – other areas are showing potential for predictability, at least in some seasons. They include much of southern Africa up to southern Zambia; a swath of East Africa centered on Kenya; a wide band of West Africa reaching from the Atlantic coast across to Sudan; and a stretch of west-central Africa from the Atlantic coast into the Democratic Republic of Congo.

Already, “skillful forecasts can be produced more than a month before the normal start of the growing season for the short rains in eastern Africa and the main rainy season in southern Africa,” the study noted.

Just as important, the regional forecasts can be “downscaled” to provide more specific local forecasts with only “modest” loss of accuracy, the study said.

So why aren’t seasonal forecasts yet reaching farmers, particularly given that studies show most are eager to get and act on the information?

Largely it’s the result of communication failures, Hansen said. Meteorologists in many regions tend to oversimplify forecasts, telling farmers there will be higher rainfall, for instance, rather than a 60 percent chance of higher than normal rainfall.

That has led to a lack of trust, particularly when oversimplified predictions don’t come true.

“If I were a smallholder farmer and a climate scientists said it would be more or less rainy, I’d be extremely skeptical. A lot would depend on how much I trust that person,” Hansen noted.

The reality is “farmers understand probability very well. Their lives depend on it,” he said. Leaving the probabilities off forecasts undermines trust and reliability, he said.

But perhaps the most severe problem, he said, is that many African meteorological services see weather data as something to be sold to paying clients – airports, insurance firms, development organizations – rather than released as a public good.

That view is in part the result of structural reforms driven by the World Bank and the International Monetary Fund, aimed at reducing the hand of governments – often seen as corrupt or inefficient – in services including meteorology, Hansen said. The reforms left many meteorological services dependent on commercial sales of data for funding, he said, a model that is providing difficult to change.

CHANGING THE FUNDING MODEL

Still, efforts are underway. An initiative in Kenya called WIND – Weather Information for Development – aims to help Kenya’s meteorological service find new sources of revenue and make better decisions about what data should be commercialized and what made publicly available free.

In other countries, researchers hope to tempt government meteorological services into releasing satellite data free in exchange for access to information from ground weather stations runs by research organizations.

“If we can get one or two (countries) to break out, and they get new visibility and funding, maybe there can be a domino effect,” Hansen said.

Better seasonal climate forecasts won’t help ease surging food prices around the world, because the surges are driven by rising demand, the scientist warned.

But in some of the poorest parts of the world, good seasonal climate forecasts have the potential to help curb hunger, protect incomes and get some of the world’s most climate-vulnerable people through bad years.

“The ability to anticipate climate fluctuations and their impact on agriculture months in advance should, in principle, enable… opportunities to manage risk,” the study noted.

picture of farmer on mobile phone

Photo Credit: Mr.S.Vithiyatharan

Two weeks ago, USAID held an event on the current initiatives using ICT to strengthen Farm Extension Services (FES). Judy Payne, ICT Advisor at USAID, was joined by Chris Locke, Managing Director GSMA Development Fund, to update the ICT4D community on new initiatives, approaches, and challenges in FES.

 

To start the discussion, Judy Payne provided an overview of some promising examples under USAID’s Fostering Agriculture Competitiveness Employing Information Communication Technologies Project (FACET). Some of these include Reuters Marketing Light, Mali Shambani, Community Knowledge Worker, Manobi, and Digital Green. She did not linger on the technicalities of these projects, opting to focus on how new technologies can complement traditional tactics for the most sustainable use.

 

USAId logoThe combination of the “push” and “pull” information allows a feedback loop from the farmer to the organization, crucial for monitoring and evaluation. “Push” services are those are those that are being used to provide the farmer with information, such market information through SMS or voicemail. “Pull” services consists of the feedback from the farmer, such as their queries on demand in the market via SMS.

 

Ms. Payne asserted that the combination of new ICTs with more traditional tactics, such as face-to-face training and verbal feedback, are necessary for the most efficient implementation.

 

She also explained that collaborative new business models, such as sponsor mobile network operators (MNO) and farmer pay services, are non-agricultural components of FES that ensure well-defined distribution channels and access to users.

 

Chris Locke, Managing Director, GSMA Development Fund

Chris Locke, Managing Director, GSMA Development Fund

Chris Locke of the GSMA Development Fund echoed the importance of leveraging the private sector and combining ICT channels for FES in current e-agriculture projects.

 

The Development Fund works with mobile operators to accelerate mobile solutions for people living on under US$2 per day. They have been working with the Gates Foundation and USAID on a new e-agri initiative called mFarmer in Kenya and India.

 

Currently in its second phase of the project, the goal of the mFarmer program is to work with MNOs and partners to support the launch of quality agricultural value-added-services accessibly to over 2 million smallholder farmers. The program aims to provide a sustainable way for farmers to obtain critical agricultural information that can help them improve their farm productivity and income.

 

The role of GSMA in this program is to develop this content database for ICT-enabled farmgsma development fund logo extension services to share and create, but building alliances with local MNOs is equally important.

 

Mr. Locke discussed how partnerships with local MNOs play a major role in disseminating information in developing areas. Local private sector involvement allows organizations to tap into previously established distribution channels that are culturally relevant and have widespread reach.

 

Unlocking the power of MNOs provides potential nation wide scalability. He argued these are distribution channels where:

Operators have the capacity to spread it across at a national level

 

Post-discussion, it was apparent (as it always is) that there has to be more than just the use of ICTs to help rural farmers in FES projects. ICT channels should be complemented with traditional tactics to heighten impact and sustainability; and organizations should establish alliances with local MNOs to leverage their local distribution channels.

 

Today is World Health Day 2011 and theme this year is on antimicrobial resistance. In developing countries, one of the most pressing health issues is malaria, with a high morbidity and mortality rate. Rapid diagnosis and prompt treatment are most basic managerial elements on how to circumvent this vicious disease. The attachment of a microscope onto a cell phone, known as Cellscope, can help with these diagnoses.

View the Prezi below to see how the innovative mHealth tool can help rural health workers.


Customers in Africa can leapfrog conventional payment methods and benefit from greater financial access in an open banking system

Earlier this month in Nairobi, airtel Africa, Standard Chartered Bank, and MasterCard Worldwide announced the launch of the world’s first virtual card, known as the airtel 1time Shopping card.  The airtel 1time Shopping Card operates off a wallet residing on a mobile phone. This innovative payment method aims to serve the global unbanked population in Africa, where there are close to 400 million mobile phone users with an unbanked population of 230 million households.

airtel Africa, Standard Chartered Bank and MasterCard (not pictured) collaborate on the first virtual card on a mobile phone

Michael Miebach, Division President, Middle East and Africa, MasterCard Worldwide observed how that airtel 1time Shopping card will connect consumers to the global marketplace, “Whether located in urban or rural communities, people will be able to participate in commerce from their hometown to anywhere in the world,” he commented.

This is how the system will work: airtel Africa customers in Kenya will soon be able to use their mobile phone to make online purchases from MasterCard merchants around the world and through a simplified online transaction.  Each time an airtel customer is shopping online he or she will be able to request a single use shopping card number.  The airtel money services then will generate a special 16 digit number that enables the completion of the transaction and when the transaction is completed, a confirmation message will be sent to the consumer’s handset.

Utilizing the mobile technology platform, airtel’s vast consumer penetration, combined with the financial and regulatory framework provided by Standard Chartered Bank, and global acceptance of MasterCard, consumers will be able to transact in a reliable, convenient and secure environment.

Airtel CEO Manoj Kohli

Speaking about the Groundbreaking innovation, Manoj Kohli, airtel’s CEO and Joint Managing Director, stated:

The airtel 1time Shopping Card…will deliver innovative and relevant mobile solutions that will help consumers overcome the daily challenges in their lives. The solution will offer consumers a robust e-commerce solution that delivers security, accessibility, acceptance, ability and a global reach

This single-use shopping card will soon be available in Kenya and rolled out to markets across Africa, subject to regulatory approvals.

MobiHealthNews held their first webinar, last Thursday, February 11,to discuss mobile health news and trends that will likely emerge during the Healthcare Information and Management Systems Society (HIMSS) 2011 annual gathering this year in Orlando. The webinar, which was attended by health professionals and practioners around the world was the first of its kind to predict future innovations and trends in mobile health.

Brian Dolan, MobiHealthNews editor, discussed the increasing expansion of peripheral health devices. Most of these were manufactured to assist medical practitioners in the developed world, but a few stood out as contenders for development context:

iHealth blood pressure dock

  • iPhone ECG case developed by AliveCor called the iPhonECG is a great new device. This gadget turns your Apple iPhone 4 into Electrocardiogram (ECG) by putting it into a special $100 case, however it has not been approved for sale in the U.S. yet. This would possess the capability to help healthcare works in the field monitor electrical activity of the heart and detect any heart disease, allowing them to assess the patient’s level of risk more accurately.
  • Cellscope which turns a cell phone into a high-magnification microscope.is a revolutionary approach to curing infectious disease are a huge upcoming trend that will launch throughout the year and gain FDA approval.

    The CellScope

The HIMSS will hold its annual conference on February 20-24, where hundreds of corporate and non-for-profit members come together to collaborate on their mission to transform healthcare through effective use of IT and management systems.. Each year a few innovations stand out among the crowd. Two years ago, one of the big themes that emerged was that an electronic medical records (EMR) vendor developed a smartphone application. Last year, tablets such as the iPad, emerged as catalysts for mHealth devices to grow in usage.

The Center for Global Development, released a paper indicating that mobile phones can impact literacy skills, and a sustainable model  may have been found. The paper is the result of an evaluation of a mobile education program, called Project ABC in Niger.

Projet d’Alphabetisation a Base Cellulaire, or Project ABC, works with non-formal education centers established by the Catholic Relief Services Niger Food Security and Nutrition Program (2007-2011), is funded by USAID/Food for Peace, and is implemented with CARE and Helen Keller International.

The project uses multimedia phones that have been programmed with a digital curriculum in the local languages of Hausa and Zarma, and incorporates a practical literacy component tied to obtaining market information via text message.

In the first year of ABC, participants learn basic cell phone technology, including SMS. In the second year, interactive multimedia phones and a digital curriculum that includes phonetic activities and varied texts are used to further develop literacy skills. Participants also use skills in literacy, numeracy, and basic cell phone technology in a companion program that teaches them how to request and retrieve market information via SMS.

According to the report:

Overall, students demonstrated substantial  improvements in literacy and numeracy test scores, suggesting that the adult education curriculum is effective in increasing learning. Students in mobile phone villages showed substantial additional gains in literacy and numeracy exam scores.

There is also evidence of persistent impacts: eight months after the end of the first year of classes, students in ABC villages retained what they had learned better than the non-ABC students. These effects do not appear to be driven by differences in the class time devoted to students, teacher experience or teacher and student attendance. Rather they can be partly explained by the effectiveness of mobile phones as an educational tool: Students in ABC villages used mobile phones more frequently to make calls, write SMS and search for price information as compared to their nonmobile phone counterparts. The program suggests that simple and relatively cheaper information and communication technology can serve as an effective and sustainable educational tool for rural populations.

According to Isbrandt, the program is operational in 56 literacy centers in the rural regions of Dosso and Zinder, in primarily agricultural villages. As is the case in most rural settings in West Africa, local language reading materials are otherwise scarce. Participants in the program include 1,400 learners, half of whom are women

References

Aker, Jenny C., Christopher Knoll and Travis J. Lybert, “ABC, 123: The Impact of a Mobile Phone Literacy Program on Educational Outcomes,” Center for Global Development Working Paper, September 2010

Isbrandt, Scott (2009) Cell Phone in West Africa: Improving Literacy and Agricultural Market Systems. Retrieved September 1, 2010.

This working paper by Jenny C. Aker and Isaac M. Mbiti for the Center for Global Development examines the growth of mobile phone technology over the past decade and considers its potential impacts upon quality of life in low-income countries, with a particular focus on sub-Saharan Africa. An overview of the patterns and determinants of mobile phone coverage in sub-Saharan Africa is first presented followed by a description of the characteristics of primary and secondary mobile phone adopters on the continent. The paper also discusses the channels through which mobile phone technology can impact development outcomes, both as a positive externality of the communication sector and as part of mobile phone-based development projects, and analyze existing evidence.

While current research suggests that mobile phone coverage and adoption have had positive impacts on agricultural and labor market efficiency and welfare in certain countries, the paper notes that the empirical evidence is still somewhat limited. The paper also argues that mobile phone technology cannot serve as the “silver bullet” for development in sub-Saharan Africa, and that careful impact evaluations of mobile phone development projects are required to better understand their impacts upon economic and social outcomes. The paper also notes the need for mobile phone technology to work in partnership with other public good provision and investment.

For more information and to view the working paper please click here.

Working with diverse partners, the mHealth Alliance (mHA) advances mHealth through research, advocacy, and support for the development of interoperable solutions and sustainable deployment models. The mHA, hosted by the United Nations Foundation, sponsors events and conferences, leads cross-sector mHealth initiatives, and hosts HUB (HealthUnBound), a global online community for resource sharing and collaborative solution generation.

Some FAQs about mHealth

Q. What is mHealth?

A. mHealth stands for mobile-based or mobile-enhanced solutions that deliver health. The ubiquity of mobile devices in the developed or developing world presents the opportunity to improve health outcomes through the delivery of innovative medical and health services with information and communication technologies to the farthest reaches of the globe.

Q. What is the mHealth Alliance vision?

A.  The mHealth Alliance seeks to mobilize innovation to deliver quality health services to the furthest reaches of the wireless networks. At the leading edge of the mHealth ecosystem, they seek to unite existing mHealth projects and guide governments, NGOs, and mobile firms to deliver innovative, interoperable solutions in the exploding mHealth field.

Q.  How did the mHealth Alliance begin?

A. The idea for the mHealth Alliance emanated from a July 2008 conference in Bellagio, Italy, on the future of mHealth, during which participants committed to forming a non-profit mHealth Alliance to maximize the impact of mobile health, especially in emerging economies, by ensuring interoperability and open-standards based solutions.

Launched at the GSM Mobile World Congress in February 2009 by the Rockefeller Foundation, United Nations Foundation, and Vodafone Foundation, the mHA now includes the U.S. President’s Emergency Plan for AIDS Relief (PEPFAR) and the GSM Association among its founding partners.

Q. What are the key areas of focus for the mHealth Alliance in terms of public health problems?

A. The mHA is committed to ensuring the positive impact of mobile/ICT-based services across all health sectors, geographies and communities. The mHA has chosen to focus initially on maternal and child health with the inception and launching of the Maternal mHealth Initiative (MMI), as a way to model the potential of mHealth and developing the necessary reference models and prototype solutions. By focusing on mHealth solutions for the full continuum of maternal care, from pre to post-natal health, the mHA is able to identify a set of common needs that can also be applied to a wide variety of health areas.


Text to Change is very proud to be nominated for the Best Product, Initiative or Service for Underserved segments for the GSMA’s 16th Annual Global Mobile Awards.

The GSMA represents the interests of the worldwide mobile communications industry. Spanning 219 countries, the GSMA unites nearly 800 of the world’s mobile operators, as well as more than 200 companies in the broader mobile ecosystem, including handset makers, software companies, equipment providers, Internet companies, and media and entertainment organisations. The GSMA is focused on innovating, incubating and creating new opportunities for its membership, all with the end goal of driving the growth of the mobile communications industry.

“Our congratulations go to all the nominees in this year’s Global Mobile Awards,” said Rob Conway, CEO of the GSMA. “To get down to just 115 nominees across 10 categories, from more than 470 high calibre entries, certainly presented our judges with a tough challenge this year.  It is a great achievement to be shortlisted among such a high quality field of entrants and we eagerly anticipate the announcement of the winners on Tuesday 15th February 2011 at the Mobile World Congress and look forward to showcasing another great year of innovation for the mobile industry.”

The GSMA today announced the nominees for the 16th Annual Global Mobile Awards. The winners will be announced during an afternoon awards ceremony and evening party to be hosted by the British TV and radio presenter Jonathan Ross on Tuesday 15th February 2011 at the GSMA Mobile World Congress in Barcelona. The full list of categories and nominees for the 2011 Global Mobile Awards is available at:

Check out more of the GSMA nominees on this link

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