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Burgeoning African E-commerce Industry Full of Opportunity

By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

Africa has seen huge change since 2000 in the way people access information and do business electronically. The most championed accomplishment has been the widespread take-up of mobile phones. This has given birth to countless entrepreneurs and innovators who are using  phones to help people, do business and sell goods and services.

Not as quick to spread, mostly because of high cost and poor infrastructure, is access to the Internet. While Web access is taken for granted in many wealthy countries and is increasingly commonplace in many developing nations, Africa as a whole still suffers from poor infrastructure for access to the Internet. But this is changing by the month as  more undersea cables connect countries and bandwidth is increased (http://www.submarinecablemap.com/).

Africa’s population can be expected to at least double from 1.1 billion to about 2.3 billion by 2050 – and most will live in urban areas (Population Reference Bureau).

And incomes are rising. Africa is richer than India on the basis of gross national income (GNI) per capita, and a dozen African countries have a higher GNI per capita than China (Africa Rising).

According to the McKinsey Global Institute, “The incomes of these new consuming classes are rising even faster than the number of individuals in the consuming classes. This means that many products and services are hitting take-off points at which their consumption rises swiftly and steeply. By 2025 urban consumers are likely to inject around (US) $20 trillion a year in additional spending into the world economy.”

Research firm Jana (jana.com) – which specializes in emerging markets – studied the consumer preferences of people in Nigeria, Kenya and South Africa. They surveyed 600 consumers in each country, seeking to unearth what their preferences were when it came to using e-commerce services (https://en.wikipedia.org/wiki/E-commerce). E-commerce is the buying and selling of products and services over electronic systems such as the Internet and other computer-enabled systems. This is still a young industry in Africa and one ripe with opportunity for hardworking and innovative players. Many are starting to realize they had better move fast because this is a market that still has much up for grabs and is not – yet – dominated by mature players such as eBay or Amazon.

The survey uncovered five trends driving e-commerce in Africa. These trends address the unique conditions present in Africa and what challenges need to be met.

The first trend the firm identified is cash on delivery. This has become the main way people do e-commerce in Africa because of the lack of trust in the security of online payments. Cash is still king in the region. The second trend is having a proprietary logistics network. This comes in response to the poor infrastructure present in much of Africa. This has meant e-commerce companies need to take charge of the whole process of getting a good to the customer’s home. This is, of course, costly and places a big restraint on any new company in the e-commerce market.

The third big trend is one that reflects the reality of how people communicate electronically in Africa. Mobile phones are king, and this means e-commerce needs to be mobile phone-friendly or lose out on reaching many customers. The fourth trend is related to the fact Africa is still off the logistics route for much world trade. This means e-commerce companies need to set aside space for large warehouses to store the goods so that they are on hand when the customer wants them.

And, finally, the fifth trend is the importance of good customer service as the clincher for success in the marketplace. Word of mouth gets around if a company is not able to deliver on what is promised so it is important to have high-quality customer service to build trust, keep engaged with consumers and let them know problems are being resolved.

South Africa has emerged as the continent’s powerhouse when it comes to e-commerce, according to Jana. Successful players in that country include Zando (http://www.zando.co.za/) an online fashion store by Rocket Internet, MIH Internet Africa’s Kalahari online store (http://www.kalahari.com/) and entertainment and consumer electronics online store Takealot.com supported by Tiger Global. Research firm World Wide Worx (http://www.worldwideworx.com/) calculated that online retail in South Africa is growing by 30 per cent a year.

But South Africa cannot rest on its laurels: the survey found Nigeria is fast overtaking South Africa as its large population takes to the Internet. Impressively, Nigeria’s Government has pledged to expand broadband Internet access to 80 per cent of the country over the next five years.

In East Africa, Kenya’s Rocket Internet’s service Jumia (http://www.jumia.co.ke/) is now one of the top 100 online destinations in the country.

Jana also found there were various key areas for improvement for the e-commerce industry in Africa. One, was the importance of explaining to African consumers the basics of online shopping. Many respondents to the survey seemed confused about making purchases on the Internet and through e-commerce. They also showed low levels of understanding about payment methods and available financial products. And finally, one of the big obstacles to expanding the industry is improving delivery reliability.

But all these problems and challenges spell opportunity for innovators who can solve them and make some money too!

Published: July 2013

Resources
 
1) E-commerce: The latest news from The Guardian newspaper. Website: http://www.guardian.co.uk/technology/efinance

2) E-commerce Expo: From 2 to 3 October 2013 in London, UK, the eCommerce Expo is the industry event for the UK and, increasingly, Europe. It ranks as one of the largest gatherings of e-commerce professionals in Europe and boasts over 180 exhibiting companies plus a comprehensive conference programme. Website: http://www.ecommerceexpo.co.uk/page.cfm/newSection=Yes

3) Mashable e-commerce: E-commerce (or electric commerce) refers to the buying and selling of goods and services via electronic channels, primarily the Internet. Online retail is decidedly convenient due to its 24-hour availability, global reach and generally efficient customer service. Website: http://mashable.com/category/e-commerce/

4) Actinic: An online software system for setting up an online e-commerce website. Website: actinic.co.uk/

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

Categories
Archive Development Challenges, South-South Solutions Newsletters Southern Innovator magazine

A Solution to Stop Garbage Destroying Tourism

By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

Tourism is an essential source of income for countries across the South. But many put that livelihood in jeopardy when they lose control of garbage collection. A popular tourist spot can represent a ‘paradise’ to visitors, but when it becomes too popular and local garbage collection systems collapse under the burden, ‘paradise’ can soon turn to an environmental hell.

The small, tourist-friendly Indonesian island of Bali (http://en.wikipedia.org/wiki/Bali) – known for its idyllic pleasures of spas, surf and serenity – is being overwhelmed by garbage. A survey of tourists found two-thirds would not return to the island because of the problem.

Tourism took off on the island in the 1970s. The economic benefits are clear: the island went from being economically marginal to ranking second only to the country’s capital, Jakarta, in wealth creation. The island received more than 2.38 million tourists in 2009, up 14.5 percent compared with 2008, according to Ida Komang Wisnu, head of the provincial statistics office. But tourism produces on average five kilograms of waste a day per tourist – 10 times what the average Indonesian produces (Bali Fokus).

In the past, the traditional way of serving food in Indonesia was to wrap it in, or serve it on, a palm leaf: a biodegradable approach. But with the huge expansion in use of plastics and non-biodegradable packaging, the waste disposal problem is out of control.

In Indonesia, government garbage disposal services tend to collect between 30 and 40 percent of solid waste, most of this from high income communities. The majority poor population are left to fend for themselves when it comes to waste disposal.

A solution by Yuyun Ismawati, an environmental engineer and consultant, has since 1996 focused on helping poor communities find ways to safely dispose of waste. In 2000, she started her own NGO – Bali Fokus (http://balifokus.asia/balifokus/) – and opened a waste management facility in the Bali village of Temesi. The recycling plant employs 40 people from the village, who sort garbage into recyclables, compost and residual waste. Income from the recycled waste and compost goes to helping local farmers.

She then expanded her concept to include households around Bali and elsewhere in Indonesia. She concentrated on housewives and targeted reducing the amount of household waste going to dump sites. A core team trains housewives in daily habits that separate waste and compost organic matter like vegetable and fruit scraps. Bali Fokus claims it has been able to reduce waste created by 50 percent in 500 homes. Some of the women sell their compost in local markets; recyclables are turned into sellable items.

From 2001 to 2003, Ismawati turned this approach into a replicable template called SANIMAS. By 2008, the SANIMAS template was being used in hundreds of communities across Indonesia.

Her solution to the deluge of tourist waste can be seen in the luxury Jimbaran Bay area of Bali. Traditionally, the area’s hotels would sell their waste to pig farmers. While the pigs feasted on the fancy scraps, the rest of the waste was put in plastic bags and thrown away in mangrove forests.

“I told hotels: Your job is to sell rooms, not to sell garbage,” Ismawati recalls. “We have to protect Bali or else tourists won’t want to come here anymore.”

Ismawati cleverly turned the relationship around: rather than a pig farmer paying for scraps, she convinced one of them there was money to be made recycling and sorting garbage. For this, the hotels would pay the farmer.

A network of 25 hotels now pays to have their garbage taken away and sorted by hand: an important source of full-time jobs.

The workers sort through paper, plastics, glass, aluminium, food scraps and vegetables. Each week, 140 trucks deliver waste to the facility. Only 10 leave with waste that has to go to a dump site.

Food leftovers are bought by local pig farmers and grass clippings and other organic matter is composted (http://www.recyclenow.com/home_composting/), and eventually makes its way back to the hotels and is distributed in the flower beds.

This system has created 400 jobs where the pig farmer once only employed 10 people.

“If you want a hi-tech solution in a developing country you will wait and wait and wait until you get the money, or big donors to fund it,” Ismawati told the Telegraph newspaper. “And even then it may not work.”

A graphic example of this is a donated waste recycling machine given by the local government. It can’t be used because the electricity to power it costs too much. Human labour is a cheaper option.

Bali Fokus’ successful approach has now been replicated in six other sites on the nearby island of Java. And the government of Indonesia has promised to help create 15 more each year.

In 2009 Ismawati won the Goldman Award (http://www.goldmanprize.org/), which honors grassroots environmental heroes from the six inhabited continental regions: Africa, Asia, Europe, Islands and Island Nations, North America, and South and Central America.

She is also working on using decentralized grassroots approaches to bringing sewage disposal and clean water to communities.

Published: March 2010

Resources

https://davidsouthconsulting.org/2022/11/19/african-culture-as-big-business/

https://davidsouthconsulting.org/2022/10/20/african-tourism-leads-the-world-and-brings-new-opportunities/

https://davidsouthconsulting.org/2022/10/20/africas-tourism-sector-can-learn-from-asian-experience/

https://davidsouthconsulting.org/2022/11/18/bolivia-grabs-world-media-attention-with-salt-hotel/

https://davidsouthconsulting.org/2022/02/07/boosting-tourism-in-india-with-surfing-culture/

https://davidsouthconsulting.org/2022/09/27/caribbean-island-st-kitts-goes-green-for-tourism/

https://davidsouthconsulting.org/2022/11/20/ecotourism-to-heal-the-scars-of-the-past/

https://davidsouthconsulting.org/2022/11/21/from-warriors-to-tour-guides/

https://davidsouthconsulting.org/2022/11/11/havanas-restaurant-boom-augers-in-new-age-of-entrepreneurs/

https://davidsouthconsulting.org/2022/11/15/indonesia-best-for-entrepreneurs/

https://davidsouthconsulting.org/2022/11/01/indonesian-food-company-helps-itself-by-making-farmers-more-efficient/

https://davidsouthconsulting.org/2022/11/15/indonesian-middle-class-recycle-wealth-back-into-domestic-economy/

https://davidsouthconsulting.org/2021/06/11/indonesian-wooden-radio-succeeds-with-good-design/

https://davidsouthconsulting.org/2022/11/23/kenyan-safari-begins-minutes-from-airport/

https://davidsouthconsulting.org/2022/10/26/south-gets-reading-bug-with-more-festivals/

https://davidsouthconsulting.org/2021/03/05/southern-innovator-issue-2/

https://davidsouthconsulting.org/2021/03/05/southern-innovator-issue-5/

https://davidsouthconsulting.org/2022/11/18/tourist-passion-for-quirky-holidays-helps-south/

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

Categories
Archive Development Challenges, South-South Solutions Newsletters Southern Innovator magazine

Bringing the Invention and Innovation Mindset to Young Kenyans

By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

A highly innovative new way to teach the basics of electronics, computing and technological innovation is being pioneered in the slums of Nairobi, Kenya. Driven by the desire to counter perceptions of apathy among young people, NGO Kuweni Serious is running a training course for girls aged over 8 years in some of the poorest parts of the city to turn on a new generation to the power of technology to make change.

“Technology is pivotal in our work, as Kuweni Serious is a primarily online platform that seeks to create offline action,” according to Kuweni Serious’ Rachel Gichengo. “It’s positive in that you can reach a lot of people with solid messages that are in bite-size pieces that are easy to disseminate and consume. Everyone can pass on the information with a simple click – it’s an easier way to begin socio-political discussion among people who would otherwise not be drawn into these kinds of discussions because they’re not presented in a way that appeals to them. The typical profile of a KS volunteer is someone in their 20s, middle-class, has some experience volunteering, has never been to a slum despite living in Nairobi, but wants more for their country.”

The course uses a clever, hands-on approach to teaching. Instructors use a new generation of learning toys that help young people understand how technology works and gives them the first taste of what it is like to build something from scratch. These toys comprise various components that perform tasks – a light, a motor, a computer, a music player. Active invention is required to work out how to assemble these parts to make something bigger and better. This stands in stark contrast to toys – or computer games – where all the hard work is done for the child and they just have to play.

“We chose tech training because it’s a traditionally under-represented area when it comes to reaching this particular group (underprivileged girls), yet such an important set of skills to be taught in this day and age,” confirms Gichengo. “We want to expand these girls’ thinking – to get them interested in the possibilities of careers in science and tech, rather than perpetuate the idea that all they’ll ever do, based on their circumstances, is tailoring or dance. We hoped to open our girls’ worlds a bit, as well as link them to our Kuweni Serious community of volunteers.”

Called PicoCrickets (www.picocricket.com), and manufactured by the Canadian Playful Invention Company (PICO), the toys were developed from research and ideas at the Lifelong Kindergarten group (http://llk.media.mit.edu/) at the MIT (Massachusetts Institute of Technology) Media Lab (www.media.mit.edu).

“Pico Crickets are cool,” continues Gichengo. “They’re a fun way to learn to build things, to learn the connection between hardware and software, to begin to understand what computers can do. They make learning easy, and they make science seem accessible to a group that tends to see it as too hard for them. The kits were paid for by a grant from the Girl Effect (www.girleffect.org).”

The MIT lab conducted intensive research into creative learning environments for children. One of the first fruits of this research was Lego Mindstorms (http://mindstorms.lego.com), kits that allow children to make and program their own robots.

Inspired by this work, the PicoCricket places more emphasises on artistic expression. The company created the PicoCricket Kit (www.picocricket.com/whatisit.html) as a way to integrate art and technology to “spark creative thinking in girls and boys 8 years and older,” according to its website.

A typical kit includes a central PicoCricket that a child then plugs in to various motors, sensors, lights and other devices to make something that can spin, light up or play music. It is intended to give free rein to both technological innovation and artistic expression.

Kenya experienced violent rioting during the 2007 and 2008 elections. The shock of the events produced a number of initiatives to counter the violence and the social and economic disruption it has caused. One of the most well-known innovations, Ushahidi (www.ushahidi.com), a crisis-mapping platform, has been deployed around the world and led to many other new innovations.

Kuweni Serious (www.kuweniserious.org) is also a result of this crisis. The NGO sets out to counter the stereotype of Kenya’s youth as a “hedonistic generation of brand-obsessed youth, moving from party to party in the night and congregating on Facebook during the day.”

Kuweni Serious believes young people in Kenya were shocked into action when violence broke out during the elections. Prices jumped for everything – from fuel to food – and water and power started to be rationed. It was a wake-up call to youth: it was getting harder and harder to ignore what was happening in the country.

Kuweni Serious was founded by Kenyan youth and asked the question “how do Kenya’s youth feel about all the chaos around us?” It seeks to rally young people to their motto: “Fighting the evil forces of apathy.”

Their 125/100 program set out to train 125 girls on a 100-day course. It ended with a graduation ceremony on July 2, 2011.

The program, run by volunteers from the University of Nairobi, has taught basic computer skills, got the children working on Google Maps and making – and inventing – using the PicoCrickets.

The girls on the course came from Baba Dogo and Kibera, Nairobi’s largest slum.

The technology training program lasted between three and six hours a week for 12 weeks. The inventions made by the children included merry go rounds, a lamp stand and fan and miniature automobiles. Participants even got to grips with Google Maps and learned how to use mobile phones in citizen journalism. At the end of the course, all the children received a certificate reinforcing their sense of accomplishment and achievement.

“We hope to continue doing similar projects, scaling up 125/100, and working on developing a corps of everyday change makers among young, educated, middle class Kenyans,” according to Gichengo. “We’re also preparing for the 2012 elections, so we need to have more conversations about what a new election means, given the outcome of our previous one.”

Another initiative seeking to improve life chances for Kenyan girls is ZanaAfrica (www.zanaa.org). It focuses on educational opportunities for girls, consulting them to find out what would increase their chances of graduation from school. Because of this back-and-forth dialogue with the girls, they have come up with various strategic programs, one example being providing girls with sanitary pads for menstruation (http://en.wikipedia.org/wiki/Menstruation) every month so that they do not skip classes and lose vital class time. ZanaAfrica was born around tackling the issue of lost school days for girls because of poor provision of sanitary pads in Kenya: an estimated 868,000 adolescent girls were missing 3.5 million school days a month, according to ZanaAfrica.  Sanitary pads in Kenya cost twice most people’s daily wage. Just to provide pads to all the school girls in Kenya, they estimated, would cost US $13 million a year, increasing by 5 percent every year.

Another disadvantage for these girls is finding the right support environment and strong, positive role models. ZanaAfrica’s solution is Empowerment Clubs (www.zanaa.org/empowernet-clubs), places where small groups of 15 to 20 students meet with field officers and tackle difficult topics not discussed at home or in school: drugs, relationships, self-confidence, health and disease. There are already 1,000 students in the Kibera area in these Empowerment Clubs. This approach has also been combined with something called EmpowerNet Clubs: these clubs take place in the schools and combine blogging and tweeting (www.twitter.com) with the discussions on life issues. Already in five schools, the clubs include a field officer and 20 girls meeting once a week.

ZanaAfrica was started in 2007 by social entrepreneur and Harvard University graduate Megan White, who has been living and working in Kenya since 2001. ZanaAfrica identifies poverty-eradicating, African-led innovations and then tries to build them up and find ways to replicate them and make them sustainable. They look for innovations in the areas of health, education and the environment.

“Kenyans are definitely early adopters, and are rushing to take advantage of new technologies,” confirms Gichengo. “The Kenyan success stories have been a huge inspiration, largely because they developed localized solutions that could then be exported to the world, rather than the other way around, which tends to be the case. There’s always value in looking further afield to see what else is being done around the world, but the iHub and Ushahidi (and the Kenya ICT Board, Safaricom, etc.) have gone a long, long way in inspiring local innovation.”

Published: July 2011

Resources

1) Make Magazine: “MAKE Magazine brings the do-it-yourself mindset to all the technology in your life. MAKE is loaded with exciting projects that help you make the most of your technology at home and away from home. We celebrate your right to tweak, hack, and bend any technology to your own will.” Website: http://makezine.com/

2) Lego Mindstorms robot-making kits. Website:http://mindstorms.lego.com/en-us/Default.aspx

3) Southern Innovator Issue 1: New global magazine celebrating innovation across the global South. Website:http://www.scribd.com/doc/57980406/Southern-Innovator-Issue-1

4) iHub Nairobi: iHub Nairobi’s Innovation Hub for the technology community is an open space for the technologists, investors, tech companies and hackers in the area. This space is a tech community facility with a focus on young entrepreneurs, web and mobile phone programmers, designers and researchers. It is part open community workspace (co-working), part vector for investors and VCs and part incubator. Website:http://ihub.co.ke/pages/home.php

5) Maker Faire Africa 2011: MFA 2011 continues to cultivate new and existing maker communities across Africa. As was the case in Accra (‘09) and Nairobi (’10), MFA 2011 will present and spotlight the vibrant and endlessly creative individuals that have come to represent the spirit of ‘making’ throughout the continent. These innovators, artists and tinkerers will be exhibiting a fusion of the informal and formal; ideas, inventions, hacks and designs both low-tech & high-tech.  From cuisine to machines, come see their re-imagining of products, exploration of novel materials, and original solutions for some of the continent’s most important challenges and opportunities. Maker Faire Africa 2011 will be a celebratory showcase of unhindered experimentation and curiosity. Website:http://makerfaireafrica.com/2011/06/09/maker-faire-africa-2011-cairo/

6) Social enterprise (http://en.wikipedia.org/wiki/Social_enterprise): Learn more about the vibrant world of social enterprise and connect with others. Website: http://www.socialenterpriselive.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.  

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

Categories
Archive Development Challenges, South-South Solutions Newsletters Southern Innovator magazine

Entrepreneurs Use Mobiles and IT to Tackle Indian Traffic Gridlock

By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

Around the world, traffic congestion is often accepted as the price paid for rapid development and economic dynamism. But as anyone who lives in a large city knows, a tipping point is soon reached where the congestion begins to harm economic activity by wasting people’s time in lengthy and aggravating commuting, and leaving them frazzled and burned out by the whole experience. According to the World Business Council for Sustainable Development, 95 percent of congestion growth in the coming years will come from developing countries. Even in developed countries like the United States, in 2000, the average driver experienced 27 hours of delays (up seven hours from 1980) (MIT Press). This balloons to 136 hours in Los Angeles.

Developing countries are growing their vehicle numbers by between 10 and 30 percent per year (World Bank). In economic hotspots, growth is even faster. In India, the cities of Delhi, Mumbai, Kolkata and Bangalore account for five percent of the nation’s population but have 14 percent of the total registered vehicles. In the Islamic Republic of Iran, Kenya, Mexico and Chile, 50 percent of cars are in the capital cities (www.peopleandplanet.net).

India’s Koolpool is stepping in with a 21st century upgrade to the old concept of carpooling. India’s first carpooling service (in which drivers share rides to reduce congestion and save money) uses the power of the country’s mobile phone network to link up people by SMS (short message service) text. Already launched in Mumbai, it is being rolled out in other cities as well.

Koolpool surveyed Indian drivers and found that the average car only had two passengers. Koolpool is an idea from the Mumbai Environmental Social Network (MESN), a registered charity with the mandate to come up with innovative solutions to environmental and infrastructure problems. Its goal is to prove “low-cost and high efficiency IT-based solutions are the way of the future. With no gestation period and minimal investment, they are profitable and more importantly for us, people friendly.” Koolpool claims that an increase from 1.7 passengers per vehicle to 2.04 will decrease travel time and pollution levels by 25 percent. It also claims to be the first carpooling service to combine SMS text messaging and IT.

Ride-givers send a text message to Koolpool just before going down a major road. Koolpool then sends a list of ride seekers on the route, their membership identifications, the designated stopping point for pick-up, number of riders and login time. If there are no ride givers on that route, then ride seekers are pooled together to get a taxi and share the costs. Members of Koolpool pay an annual membership fee and exchange credits by mobile phone between ride seekers and ride givers, which are then redeemed at gas stations for petrol.

And Koopool comes at just the right time: congestion in India will probably only get worse in the near term, as the government pledges to build even more roads and make the country’s cities “the flyover capital of Asia”.

In Kolkata, says Sudarsanam Padam, former director of the Central Institute of Road Transport in the city of Pune, the average speed during peak hours in the central business district (CBD) area is as low as seven km/hr. Bangalore currently has average speeds of about 13-15 km/hr in its CBD, but this is expected to go down to three to eight km/hr in the next 15 years, according to the city’s police traffic commissioner, M N Reddi.

Published: June 2007

Resources

  • Mobility 2001: World Mobility at the End of the Twentieth Century and its Sustainability published by the World Business Council for Sustainable Development.
  • Another Indian car pooling business allows people to post requests for rides on an internet bulletin board, Car Sales India.
  • Another solution to traffic congestion has been the motorcycle taxi. Beginning in Thailand, motorcycle taxis can now be found in Cambodia, India and the UK. Read more at here.
  • SENSEable City: A project at the Massachusetts Institute of Technology’s SENSEable City Laboratory to use the new generation of sensors and hand-held electronics to change how cities are understood and navigated. This includes creating real-time maps of cities that can then be used to help with avoiding traffic congestion and other problems.
  • Read more about India’s traffic congestion problem by India’s only science and environment biweekly online newsletter, Down to Earth.

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 2022