Filed under: barriers

Barriers to mobile apps in East Africa

This 2010 report from Sida (the Swedish International Development Cooperation Agency) contains a great deal of useful data regarding mobile apps in East Africa:

(download)

However the part that caught my attention the most was the discussion of the key barriers to mobile apps in the region.

So, what hinders the take off of mobile applications for economic and social development in East Africa?

Firstly, the most significant barrier is the total cost of ownership and use, i.e. cost of device, airtime, charging, etc. The cost of communication must go down – SMS is very overpriced and so is voice and data traffic.

Secondly, many applications and services never reach out to the masses due to poor marketing and the non-existing meta data about the available applications. Subscribers must know what solutions are available, why and how to use them. This will lead to volumes which will eventually lower the price of the particular service. In other words, there is a huge need for marketing (of the product) and education (for the end user) in order to make mobile applications sustainable.

Thirdly, many interventions are not designed with scale in mind. Many of the existing SMS based applications that could benefit the poor the most are still in their infancy in the region. A few successful cases, namely mobile money transaction systems and various health related solutions are being used at scale, but the fact remains that the number of scaled-up mobile services are still few and/or limited geographically. Few implementers are familiar with all the costs involved and seen from a technological point of view, the requirements on networks and different requirements on handsets and end-users that mobile applications have must be understood better.

Other barriers include lack of electricity, illiteracy, language, privacy issues, gender, and concerns about security (e.g. phone theft).

Al-Shabab bans mobile phone money transfers in Somalia

Somali Islamist group al-Shabab has ordered mobile phone companies to stop their popular money transfer services, saying they are "unIslamic".

Despite years of conflict, Somalia's telecommunications sector is thriving. Mobile phones are a common sight in the capital, Mogadishu, and three companies currently offer mobile phone banking.

But the al-Qaeda linked group has given them three months to stop, and one mobile phone company official said he had "no option but to obey" the order.

Al-Shabab says mobile phone banking could expose Somalia to interference by Western countries, through the international partners of the Somali telecommunications firms.

Some observers believe the ban may be intended to block a rival to the traditional money transfer systems, known as hawala, which al-Shabab can influence, or tax, more easily.

The hundreds of thousands of Somalis living abroad use hawala and mobile phone banking to send money back to relatives still in the country. One Mogadishu resident told the BBC he was very disappointed by the ban.

"This is the sole lifeline of the whole economy - the service was so useful to both poor and rich people," he said.

Full story at the BBC:

http://www.bbc.co.uk/news/world-africa-11566247