David South Consulting

Category: Southern Innovator magazine

  • East Africa to get its First Dedicated Technology City

    East Africa to get its First Dedicated Technology City

    By David South, Development Challenges, South-South Solutions

    SOUTH-SOUTH CASE STUDY

    An ambitious scheme is underway to create a vast technology city on the outskirts of Nairobi, Kenya.

    With information technology proliferating across Africa after decades of stagnation and underinvestment, a host of exciting new technologies have had to exist within structures not built for the 21st century.

    One attempt to change things is Konza Technology City (konzacity.co.ke), an ambitious project that aims to build the infrastructure to host the companies of the 21st century for Kenya and East Africa. Konza Technology City joins a growing network of technology cities and parks across the global South. If the links between these centres of technological innovation and smart thinking can be strengthened, they have the potential to contribute to exceptional gains in human development.

    Konza Technology City will be built on 5,000 acres (2,023 hectares) of land 60 kilometres south of Kenya’s capital, Nairobi.

    The lead agency on the US $10 billion project is the Ministry of Information and Communication (http://www.information.go.ke/). The Kenyan government is seeking partners and investors to help with funding the project, whose components include a business process outsourcing (BPO) (http://en.wikipedia.org/wiki/Business_process_outsourcing) zone – where specific business functions are contracted to third party providers. There is also a financial district and a commercial district with office space.

    This will be combined with the other side of Konza: hotels, hospitals, a sports stadium and other support services necessary to support a city. The idea is to develop the site over a period of 20 years, with the BPO and IT Educational and Science Park taking up 23 per cent of the site.

    Kenya plans to expand its business process outsourcing sector and has been hosting conferences in Europe to gather the best advice. The sector has experienced double-digit growth in the past three years, rising on the increasing capacity brought by new undersea cables like TEAMs, Seacom and EASSy.

    The idea is to put in place the building blocks of a 21st century Kenya and to become the leading hub for the whole of East Africa. Kenya has an ambitious plan to become a middle-income country by 2030 (http://www.vision2030.go.ke/).

    There is scepticism about large projects in Kenya, with some fearing they will be abandoned before they are finished. But it does seem this project has galvanized a wide community of support. According to IT Web’s (http://www.itweb.co.za/) Ken Macharia, opponents of the project make various arguments. People in the information and communication technologies sector would like to see greater local capacity in place before such massive investment in buildings goes ahead. Others oppose the idea of having a planned city and would like to see things evolve organically. Still others question the government’s capacity to undertake such an ambitious scheme.

    According to Macharia, the ‘if you build it, they will come’ argument is winning the day. The scope and ambition of the project has both excited many players within and outside government and focused their efforts.

    Macharia even believes the public sector is way ahead of the private sector.

    “The government is light years ahead in terms of the vision and drive of developing the ICT sector in the country, while the private sector is trying to catch up,” he said.

    Kenya will become the first country in the region to build a technology city. It can look to China for some examples. One is Shenzhen City and its Science and Technology Park (http://www.ship.gov.cn/en/index.asp?bianhao=20). Or Cairo, Egypt’s Smart Village (http://www.smart-villages.com/).

    Macharia also says the focus solely on technology is missing the bigger impact Konza can have.

    “The city’s concept has financial, educational, commercial and industrial implications, which have not been sold as aggressively as the tech aspect has. Perhaps the better name for the proposed city would be Konza Special Economic Zone, where the key pillars mutually benefit from each other’s presence. Technology, after all, is a means to an end, not the end itself.”

    The timing for a place like Konza City is excellent: undersea cables are being placed around and to Africa. The continent was notorious for being the most underserved continent on the planet and is in a furious transition from this information technology wasteland to a potential oasis of prosperity.

    The undersea cable projects are promising a bandwidth explosion for the continent of Africa. The WACS cable (http://wacscable.com/index.jsp) is being put in place to link South Africa and Britain, and is due to be completed in 2012. It runs up the West Coast of Africa and will become the first direct connection to the undersea cable network for Namibia, the Congo and Togo.

    It will increase South Africa’s bandwidth by an estimated 23 per cent.

    Various technology investors, including the search engine giant Google, are also planning to build an undersea cable linking the so-called BRICS countries by 2014 – Brazil, Russia, India, China and South Africa. The cable will also link them all to the United States. The technology group i3 Africa is leading the project (http://www.i3-mea.com/africa/), which should open up 21 additional African countries to the world’s undersea cable network.

    Konza Technology City could make Kenya a significant beneficiary of all this new connectivity and bandwidth.

    Published: July 2012

    Resources

    1) Center for Innovation Testing and Evaluation: CITE will represent a 20th century American city with a population of approximately 35,000 people and be built on roughly 15 square miles. CITE’s test city will be unpopulated. CITE will be a catalyst for the acceleration of research into applied, market-ready products by providing “end to end” testing and evaluation of emerging technologies and innovations from the world’s public laboratories, universities and the private sector. Website: http://www.cite-city.com/index.php

    2) Dubai Internet City: Since its official opening in 2000, Dubai Internet City (DIC) has grown to become the Middle East and North Africa’s largest Information and Communication Technology (ICT) Business Park, hosting both global and regional companies. Website: http://www.dubaiinternetcity.com/

    3) Songdo International Business District (IBD) officially opened on August 7, 2009 as a designated Free Economic Zone and the first new sustainable city in the world designed to be an international business district. With its strategic location just 15 minutes driving time from Incheon International Airport and 3 ½ hours flying time to 1/3 of the world’s population and regional markets such as China, Russia and Japan, Songdo IBD will position South Korea as the commercial epicenter of Northeast Asia. Website: http://www.songdo.com/

    4) Nasrec Smart City: South Africa’s own ‘smart city’ is in development. Website: http://www.businessday.co.za/articles/Content.aspx?id=168466

    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. 

    Creative Commons License

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

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

    © David South Consulting 2023

  • The Water-Free South African Bathing Solution

    The Water-Free South African Bathing Solution

    By David South, Development Challenges, South-South Solutions

    SOUTH-SOUTH CASE STUDY

    As the world’s population grows from its current 7 billion to a projected 9 billion in 2050 (UN), competition for access to the Earth’s resources will become fiercer. The most essential resource for life on the planet – and an increasingly precious resource – is water. Water is necessary for the very survival of humans, animals and plants, and is also used in vast quantities by industries and farms.

    As demand increases, water resources will need to be conserved more and more, while clever ways will have to be developed to use less water. And there is also another factor to consider for the world’s poor: many millions live in very constrained conditions in urban and rural areas. For their health and dignity, the ability to wash every day is critical. Being clean is vital to being able to economically advance in life: it is something that sounds obvious but is often not a possibility for many millions of people living in slums.

    Many will face lives where water is an uncertain resource that will be either expensive to purchase or will require lots of labour to obtain.

    Anyone who can come up with a way to help bring the dignity of being clean and healthy while also saving water is onto a winner.

    A clever South African, Ludwick Marishane, has developed a clear gel that works like soap and water but doesn’t need H2O to get a person clean.

    The product is called DryBath (http://headboy.org/drybath/) and uses a “proprietary blend of a biocide, bioflavonoids and moisturisers.” It differs from common liquid hand anti-bacterial cleanser products that people use to sterilize hands. Those products use alcohol to simultaneously sterilize germs and evaporate the liquid.

    DryBath works in a different way by not requiring water or alcohol to complete the washing. The liquid gel is odourless, biodegradable and moisturises and does not need to be rinsed off. It instead leaves users smelling fresh and “tackles the hygiene and water consumption problems in a manner that has never been used before.”

    It also comes in a special package developed in South Africa. EasySnap™ sachets allow users to quickly snap the package and dispense the solution on to their hands to have a wash. EasySnap is a rectangular sachet that is snapped in the middle to open.

    Marishane, a 22-year-old student at the University of Cape Town, told Reuters that the idea for DryBath came to him when he was a teenager living in his rural home. It was wintertime and his friend didn’t want to bother washing because there was no hot water available.

    “He was lazy and he happened to say, ‘why doesn’t somebody invent something that you can just put on your skin and you don’t have to bathe’,” Marishane said.

    That was when the light bulb went off in his head.

    Intrigued, he started doing research on his web-enabled mobile phone. He trawled through the search engine Google and the online encyclopedia Wikipedia to find what would work as a water-free wash. After six months of research, he came up with the formula for DryBath and acquired a patent.

    Now the strategy of Headboy Industries Inc. (headboy.org) – the company set up by Marishane – is to sell DryBath to corporate clients and in turn donate a free sachet for each sale to DryBath’s global charity partners, who will distribute DryBath to poor communities either for free or at a subsidized cost.

    Marishane believes his product will be particularly popular with certain industries: flight crews and passengers on airlines; hotels looking to save on water usage; the military for soldiers serving in the field; and NGOs and charities providing services to poor communities, in particular during emergency situations when it is difficult to provide a reliable water supply.

    Marishane has won several awards for his invention, including Global Champion of the Global Student Entrepreneurs Awards 2011, and is considered South Africa’s youngest patent holder.

    “DryBath will go a long way in helping communities,” he believes.

    Published: September 2012

    Resources

    1) How to register for a patent in South Africa. Website:https://www.sabs.co.za/index.php?page=patents

    2) SABS Design Institute: The SABS Design Institute promotes the benefits of good design in order to stimulate the economic and technological development of South Africa. Website: https://www.sabs.co.za/index.php?page=designinstitute

    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. 

    Creative Commons License

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

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

    © David South Consulting 2023

  • Cash Machines for the Poor

    Cash Machines for the Poor

    By David South, Development Challenges, South-South Solutions

    SOUTH-SOUTH CASE STUDY

    Access to basic banking services for the poor is weak at the best of times. Many are openly discriminated against as a ‘bad risk’ by banks, and denied the sort of banking services middle and higher income people take for granted. Yet it is a myth that the poor do not have money or do not wish to save and invest for their future or for business.

    The so-called Bottom of the Pyramid (BOP) – the four billion people around the world who live on less than US $2 a day – are being targeted by a wide range of businesses. Indian business consultant and professor CK Prahalad, the man who coined the term BOP, has gone so far as to claim this is a market potentially worth US $13 trillion, while the World Resources Institute puts it at US $5 trillion in its report, The Next 4 Billion.

    And contrary to popular perception, the poor do have buying power, as has been documented by Massachusetts Institute of Technology (MIT) professors Abhijit Banerjee and Esther Duflo in their paper “The Economic Lives of the Poor”. Surveying 13 countries, they found those living on less than a dollar a day, the very poor, actually spent 1/3 of their household income on things other than food, including tobacco, alcohol, weddings, funerals, religious festivals, radios and TVs. The researchers also found that the poor increasingly used their spending power to seek out private sector options when the public sector failed to provide adequate services.

    India, where 63 percent of the BoP market is rural and 304.11 million people are illiterate (Human Development Report), makes for a particularly tricky market to reach with bank machines: the average transaction is just 100 rupees (£1.25).

    But a Madras-based company has come up with the Gramateller – a low-cost, blue-and-white bank machine custom-designed for the poor and illiterate. Vortex received funding of 2 million rupees (US $48,000) from an investment company, Aavishkar, that specializes in micro-venture capital — small sums for new business ideas. The advantage of micro-venture capital funding is its longer payback time: a young company does not get driven out of business by having to pay back the cash before the idea has been realized. Normally, venture capital helps a business to grow quickly but the venture capitalist wants to see an immediate profit on the investment.

    Vortex’s chief executive officer, V.Vijay Babu, said: “The idea was conceived by Prof. Jhunjhunwala of IITM (Indian Institute of Technology Madras) in the course of an exploratory project focused on using ICT to deliver modern banking services to rural India.”

    “It was found that branch-based banking is too expensive to be extended to remote rural locations where the volume and size of transactions are small. Using conventional ATMs (automatic teller machines) as a channel posed many difficulties because these ATMs were not built to operate in [illiterate] environments. Hence the need for developing an ATM specific to this context.”

    Costing just a 10th as much to build as an ordinary cash machine, Gramateller has a fingerprint scanner for the illiterate, and is able to accept dirty and crumpled bank notes. Vortex came up with an ingenious solution to do this, said Babu: “Vortex developed a beltless dispenser design that in many ways mimics the way a human teller would pick and count notes.”

    Vortex hopes to massively expand access to cash machines: at present, India has just 30,000 machines, or one for every 43,000 people (the US has a machine for every 1,000 people). These machines are being piloted with India’s biggest private bank, ICICI, and they have garnered interest from Indonesian banks as well.

    “We are running pilots for two leading banks with about 10 ATMs,” said Babu. “Though it is still early, the initial response has been very encouraging – rural users find fingerprint authentication intuitive and simple and the ATM convenient and easy to use. A few users also gave feedback that our ATMs look less intimidating, maybe because it is placed in a non-air conditioned room with easy access and also is different in shape from a typical ATM.”

    Furthermore the cash machines have taken a beating to see if they are robust enough for rural India: “The ATMs were tested for extended operating cycles under the harshest of environments that would prevail in the rural context — using soiled currencies, operating in non-air conditioned and dusty environments, subjecting the machine to typical fluctuations in line voltages and power outages. User-acceptance was tested by enlisting the participation of rural and semi-urban people to carry out test transactions.”

    As for thieves getting their hands on the cash before the poor, Vortex maintains the machines will not become the victim of thieves: each machine will only carry a fifth of the money of city-dwelling bank machines.

    Elsewhere in the South, a South African research and analysis company BMI-TechKnowledge (http://www.bmi-t.co.za/) in its latest report identifies a boom in banking services across Africa. In particular, South Africa, Botswana, Namibia, Angola, Mauritius, Tanzania, Kenya, Ghana, Nigeria, Egypt and Morocco – all have seen surges in profit and services as a result of improving banking regulations and political conditions. Maybe future markets for the Gramateller to reach Africa’s poor lie ahead?

    Published: August 2008

    Resources

    • Unleashing India’s Innovation: Toward Sustainable and Inclusive Growth, a report by the World Bank.
      Website: web.worldbank.org
    • xigi.net (pronounced ‘ziggy’ as in zeitgeist) is a space for making connections and gathering intelligence within the capital market that invests in good. It’s a social network, tool provider, and online platform for tracking the nature and amount of investment activity in this emerging market also referred to as blended value investing. xigi’s goal is to help this international emerging market to grow through market formation activities that guide and educate a growing wave of new money, while connecting it to the emergent entrepreneurs and deals on the internet.
      Website: http://www.xigi.net/
    • The new report Global Savings, Assets and Financial Inclusion by the Citi Foundation is packed with innovative approaches that are allowing the BoP (bottom of the pyramid) to use their income to build assets and more sustainable livelihoods.
      Website: http://www.newamerica.net
    • NextBillion.net: Hosted by the World Resources Institute, it identifies sustainable business models that address the needs of the world’s poorest citizens.
      Websites: http://www.nextbillion.net/ and World Resources Insitute

    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. 

    Creative Commons License

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

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

    © David South Consulting 2023

  • Staple Foods Are Becoming More Secure in the South

    Staple Foods Are Becoming More Secure in the South

    By David South, Development Challenges, South-South Solutions

    SOUTH-SOUTH CASE STUDY

    Finding ways to ensure food security in countries experiencing profound economic and social change and stress is critical to achievement of development goals.

    Food security is crucial to ensuring economic development is sustainable, and it is vital to long-term human health. Just one bout of famine can damage a generation of youth, stunting brain development and leaving bodies smaller and weaker than they should be.

    Thankfully, many innovators are working on this problem and are making significant progress. A report from the Asian Development Bank, The Quiet Revolution in Staple Food Value Chains (http://www.adb.org/publications/quiet-revolution-staple-food-value-chains), found improvements to security of rice and potatoes – common staple foods in many countries. It said the so-called value chains – the various activities a company does to deliver a product or service to the marketplace (http://en.wikipedia.org/wiki/Value_chain) – for potatoes and rice have seen significant improvements in Bangladesh, China and India.

    This is important because improvements in access to staple foods will mean better food security and less threat of extreme hunger events. This matters because it just takes one extreme hunger event and a generation is scarred for life.

    The human brain is a heavy user of energy: it uses between 20 and 30 per cent of a person’s energy intake. Failure to consume enough calories means brain functioning begins to  be altered (brain-guide.org).

    Hunger and starvation slow a person’s mental responsiveness. Low energy intake from minimal diets leads to apathy, sadness and depression. Fetuses and infants are especially sensitive to brain damage caused by malnutrition. A malnourished child can suffer life-long low intelligence and cognitive defects.

    More than 70 per cent of the world’s 146 million underweight children aged five and under live in just 10 countries, with more than 50 per cent located in South Asia alone (UNICEF). A quarter of all children – roughly 146 million – in developing countries are underweight, and it is estimated that 684,000 child deaths worldwide could be prevented by increasing access to vitamin A and zinc (WFP).

    Undernutrition contributes to 53 per cent of the 9.7 million deaths of children under five each year in developing countries (UNICEF).

    Food insecurity also shows on the faces of people who experience it. This extreme stress scars people and harms their prospects in the labour market and their ability to improve their incomes.

    Why is access to staple foods improving? It seems, according to the report, to result from innovations such as rapid modernization, with the increasing roll out of supermarkets, the use of cold storage facilities and large rice mills. It also cites the impact of small farmers taking on modern technologies, such as mechanized farming, and making the most of soil by using fertilizers and efficient techniques.

    Supermarkets by their nature encourage highly sophisticated supply lines to ensure a steady stream of fresh produce coming in from farms to urban areas. Because of the variety and vast range of produce on offer, they require finely-tuned organizing models and information technologies. In short, they radically alter the way people buy their food, and what people will expect from food providers.

    By negotiating deals with farmers, supermarkets create stability, as well as low and competitive prices. They allow for better traceability for food and give consumers more confidence in what they are purchasing. They use cold storage, which means food lasts longer and there is less waste than if food is left to spoil in a marketplace without refrigeration – a revolutionary change in hot countries.

    The downside with supermarkets, as has been the case in some countries, is they can quickly dominate the marketplace and push out all other competitors with their economies of scale. When this happens, farmers can also find themselves with little bargaining power again and be hostage to the price the supermarket tells them to sell their product at.

    Another critical improvement is the rapid spread of mobile phones. Armed with a mobile phone, small-scale farmers are able to access critical knowledge and information. This means they can make better decisions and quickly adjust what they are doing when mistakes are made.

    The survey found that India is a country where the food-supply game has changed dramatically. In the past, traders would advance cash to farmers in the form of loans. But since the use of mobile phones has increased, the balance of power has shifted: farmers now have many other options to finance their operations than turning to middlemen and traders. This means they are no longer as easily manipulated by the traders and can negotiate better prices. Also, better roads, combined with greater competition to provide services to farmers, are improving farming of staple foods in general.

    Among potato farmers in rural areas, 73 to 97 per cent have mobile phones and use them to organize deals with traders or receive market information. The take-up of mobile phones was also a recent development for the farmers: most had acquired a mobile phone in the last four years.

    It is clear this quiet revolution in food security for staples is a result of greater use of innovative technology and taking on of new techniques.

    Published: July 2013

    Resources

    1) How to start a supermarket in Lagos, Nigeria: A supermarket is one of the most lucrative businesses that can thrive anywhere in the world. Website: http://www.ackcity.net/supermarket-startup-in-lagos

    2) Write a supermarket business plan: Templates for writing professional business plans. Website: http://planmagic.com/business_plan/supermarket_business_plan.html

    3) How to get your product into a supermarket: Use this mindmap to remind you what you should be doing at every stage of the process. Website: http://www.smarta.com/advice/suppliers-and-trade/logistics-management/mindmap-how-to-get-your-product-into-a-supermarket/

    4) The hidden tricks behind making a successful supermarket: Website: http://www.independent.co.uk/news/business/news/the-secrets-of-our-supermarkets-8228864.html

    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. 

    Creative Commons License

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

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

    © David South Consulting 2023