Mobile money services have not been very successful in South Africa. The new products for micro-payments must address the larger ecosystem of banks and retailers.
Cash is still king in Africa and most parts of the world. Yet, we cannot ignore the continued growth of mobile offerings on the African continent, from the uptake of smartphones, app usage, or digital and mobile payment solutions.
Today, it is possible to open a bank account from a smartphone or feature phone, and for small businesses to set up payment solutions directly from mobile devices. As technologies advance for micro-entrepreneurs, so too for micro-payments.
A new form of payment aimed at ‘paying it forward’, be it to a car guard, gardener, or a donation, has been introduced by South African startup Jini Guru, called uKheshe, which means ‘cash’ in Zulu.
The service allows a receiver to accept a tip or payment once a physical card with a QR code is scanned through the uKheshe app, by the sender.
The money accumulated can be cashed out at any Pick n Pay outlet in South Africa, making it an essential solution for those who don’t have bank accounts. The cards, attached to a lanyard, are of no cost and distributed freely; anyone can order a batch online, only incurring courier fees.
Guru first started working with Pick n Pay about five years ago, which resulted in the startup building and integrating its mobile wallet and rewards platform with the supermarket’s new smart banking capabilities back in 2017.
“The mobile money marketplace in South Africa has been riddled with several failures and false starts over the last 15 years,” says uKheshe founder Jason Penton.
“We looked at these mistakes, registered our FSP [Financial Service Providers] and focussed on building a solution for the unbanked that could uplift and increase their earning capability, and after various iterations, and around a year of red-tape and coding, we were ready to share uKheshe with South Africa.”
uKheshe has two types of users: the receiver who is equipped with a QR code, compatible with a feature phone; and the payer who has a smartphone with the app installed to make quick payments.
The receiver, upon obtaining a free uKheshe QR code, can register via a USSD menu easily on a feature phone, and thereafter, check balances; withdraw; and transfer funds. “The users are charged a R5 a month admin fee ,” Penton says.
Withdrawal fees from Pick n Pay will cost R5, which is much lower than ATM fees; and those who purchase goods at the supermarket will pay a R2 fee.
Similarly, M-Pesa, one of the biggest success stories from Kenya and Tanzania, is a virtual banking system that allows users to transact with a SIM card by making payments and transfers via SMS, through Safaricom. The popular service, however, did not find the same success in South Africa, and was discontinued in 2016.
MD of World Wide Worx Arthur Goldstuck says M-Pesa in South Africa was launched in partnership with an elite bank, Nedbank, then with an almost unknown bank, and finally hidden away in USSD menus. “They [M-Pesa] did everything wrong, and the timing of the launch wouldn’t have saved them.”
“uKheshe is probably making a mistake in its pricing, since it is being punted as an ideal way to tip the poor, it is baffling that the cost of withdrawal is practically the size of a standard tip,” Goldstuck says. “Again, with its emphasis on the poor, the R2 cost of payment for transactions suggests little understanding of the limited resources of the poor.”
But the company says another key proposition is that uKheshe card holders can transfer money to each other at no cost. “We see potential for an entire sub-economy evolving where uKheshe value is exchanged between users,” adds Penton.
“As a registered financial services provider, there are regulations in place to prevent money laundering and transferring large sums of money without being traced in the banking system,” says Penton on the account of the system being abused.
“We have a daily withdrawal limit of R3,000 ($220) and a monthly limit of R24,000 ($1,760). All sources of money into our system have to come from a banked individual and all transfers out are limited to the daily/monthly caps, in line with regulations,” he says.
Given that the majority of mobile money services have previously been a failure in South Africa, Goldstuck says the fundamental difference between markets within Africa is that South Africa already has an extensive and highly-efficient money transfer system through retail outlets, and people both trust and understand it.
“Furthermore, South Africa has a high-banked population, with more than 70% of adults having a bank account. In East Africa, fewer than 10% had a financial instrument before M-Pesa came along.”
A downside to these new products is that they are specific to one retailer, says Goldstuck. “They need to be interchangeable and brand agnostic, so that they can be used elsewhere, which requires an ecosystem that incorporates most banks and retail chains; and right now, we have deals rather than ecosystems.”
More competition is expected in South Africa as mobile operator MTN is set to relaunch its Mobile Money service in the first quarter of 2019. The service currently has more than24 million active subscribers in more than 20 markets.
– Nafisa Akabor
How Google Is Using AI To Make Voice Recognition Work For People With Disabilities
Want to schedule an appointment? Just ask your phone. Need to turn on your bedroom lights? Google Home has you covered.
Now a $49 billion market, voice-activated systems have gained popularity among consumers, thanks to their ability to automate and streamline mundane tasks. But for people with impaired speech, technologies that rely on voice commands have proved to be far from perfect.
That’s the impetus for Google’s newly formed Project Euphonia, part of the company’s AI for Social Good program. The project team is exploring ways to improve speech recognition for people who are deaf or have neurological conditions such as ALS, stroke, Parkinson’s, multiple sclerosis or traumatic brain injury.
Google has partnered with nonprofit organizations ALS Therapy Development Institute and ALS Residence Initiative (ALSRI) to collect recorded voice samples from people who have the neurodegenerative disease, one that often leads to severe speech and mobility difficulties.
For those with neurological conditions, voice-activated systems can play a key role in completing everyday tasks and conversing with loved ones, caregivers or colleagues. “You can turn on your lights, your music or communicate with someone. But this only works if the technology can actually recognize your voice and transcribe it,” says Julie Cattiau, a product manager at Google AI.
The company’s speech recognition technology utilizes machine learning algorithms that require extensive data training. “We have hundreds of thousands, or even millions, of sentences that people have read—and we use them as examples for the algorithms to learn how to recognize each,” says Cattiau. “But it’s not enough for people with disabilities.”
With Project Euphonia, the team will instead use voice samples from people who have impaired speech in the hope that the underlying system will be trained to understand inarticulate commands.
While the goal is to create technology that is more accessible for people with speech impediments, the end result is still unclear.
“It’s possible that we will have models that work for multiple people with ALS and other medical conditions,” says Cattiau. “It’s also possible that people, even just within ALS, sound too different to have such a machine learning model in place. And in that case, we may need to have a level of personalization so that each person has their own model.”
Google’s speech recognition technology can comprehend virtually any voice command for people without speech impairments, due to the large data set that has been available for training. But some uncertainty exists about how broadly speech technology will be able to understand and act on directives from those who have difficulty speaking. The Project Euphonia team has only a limited number of voice samples from people with speech impediments, which allows it to focus only on specific-use words and phrases such as “read me a book” or “turn off the lights.”
Though Cattiau’s team has collected tens of thousands of recorded phrases, she says it needs hundreds of thousands more. That’s partly why Google CEO Sundar Pichai unveiled this project at the company’s annual developer conference in May.
“We are working hard to provide these voice-recognition models to the Google Assistant in the future,” he said, calling on people with slurred and impaired speech to submit their voice samples.
“Impaired speech is a very difficult data set to put together. It’s not as simple as asking people to record phrases, and there’s no data set just lying around,” Cattiau says. “We have to first put it together, and that’s a lot of work.”
Perhaps the most groundbreaking of Project Euphonia’s initiatives is its work on new interactive AI systems for people who are completely nonverbal. Also in its early stages, these systems are being trained to detect gestures, vocalizations and facial expressions, which can then trigger certain actions like sending or reading a text message.
“We want to cover the full spectrum of people—and not only those who can still speak,” says Cattiau. Although Project Euphonia is still in its infancy, it could eventually have a great impact on those with disabilities, giving them the freedom and flexibility to live independently.Follow me on Twitter.
-Ruth Umoh; Forbes Staff
Nigeria Needs A More Effective Sanitation Strategy Here Are Some Ideas:
In November last year, Nigeria declared that its water supply, sanitation and hygiene sector was in crisis. This was partly prompted by the fact that the country has struggled to make progress towards ending open defecation.
Almost one in four Nigerians – around 50 million people – defecates in open areas. They do so because access to proper sanitation, like private indoor toilets or outdoor communal toilets, has not improved in recent years.
In fact, it’s got worse: in 2000, 36.5% of Nigerians had access to sanitation facilities that hygienically separate human excreta from human contact. By 2015 the figure had dropped to 32.6%, likely driven by rapid population growth and a lack of sufficient private and public investment.
Open defecation comes with many risks. It can lead to waterborne diseases, cause preventable deaths, and hamper education and economic growth. It also infringes on people’s privacy and dignity.
The government has tried several strategies to address this problem. In 2008 it adopted an intervention called “Community Led Total Sanitation”. This is a community-level intervention aimed at reducing open defecation and improving toilet coverage.
It draws in community leaders and ordinary residents so they can understand the risks associated with open defecation. By 2014 the intervention was deployed in all 36 Nigerian states, covering around 16% of the country’s 123,000 communities.
We wanted to know how effective the programme has been, if at all. So we conducted a study and found that community-led total sanitation programmes alone will not eradicate the practice of open defecation. But they could be part of the solution.
We found that the programme currently works quite well in poor communities but is less effective in richer places – that is, places with higher average ownership rates of assets such as fridges, motorcycles, TVs, smartphones and power generators.
Poorer communities distinguish themselves from richer ones in other ways, too. They tend to have higher levels of trust among their citizens, lower initial levels of toilet coverage and lower wealth inequality. But none of these characteristics is, on its own, as strong a predictor of where the intervention works better than community wealth.
Low community wealth is a simple measure that encompasses all these different features, and is associated with greater programme effectiveness.
Community-led total sanitation typically starts with mobilisation. This initially involves community leaders and then, through them, communities more broadly. Then, a community meeting is held at which residents typically start by marking their household’s location and toilet ownership status on a stylised map on the ground. They also identify and mark regular open defecation sites.
Facilitators use the map to trace the community’s contamination paths of human faeces into water supplies and food. A number of other activities may follow, such as walks through the community that are often referred to as “walks of shame” during which visible faeces are pointed out, to evoke further disgust and shame.
Another common activity involves calculating medical expenses related to illnesses that are caused by open defecation practices.
In 2015 we worked with the charity organisation WaterAid Nigeria and local government agencies in the states of Ekiti and Enugu to design a field experiment in areas with no recent experience of community led total sanitation, or similar interventions.
The community-led total sanitation programme was implemented in a random sample of 125 out of 247 clusters of rural communities.
To study the intervention’s effectiveness, we interviewed 20 randomly selected households before community-led total sanitation took place. We followed up with these households eight, 24 and 32 months after the intervention.
We found that the programme’s roll-out didn’t lead to any changes in sanitation practices in richer communities. But it worked in the poorest communities. The prevalence of open defecation declined by an average of nine percentage points in poorer communities when compared to other poor areas where the programme wasn’t implemented. This drop was accompanied by a similar increase in toilet ownership rates.
Impact depends on wealth
Our results are in line with observations by the designers of the programme. But we are the first to show quantitatively that community asset wealth is a good predictor of whether the intervention can be expected to be successful. Unfortunately, our data does not allow us to pin down why households in poorer communities are more susceptible to the programme. However, these results have important implications for more cost effective targeting of the programme.
Most countries, including Nigeria, have access to readily available datafrom household surveys that can be used to measure how asset-poor a community is. These data can be used to identify and target communities where community-led total sanitation is likely to have the biggest impact.
Eradicating open defecation is not just a Nigerian priority. Today, an estimated 4.5 billion people globally don’t have access to safe sanitation. So we also looked at data and research about this same intervention from other parts of the world.
Community-led total sanitation intervention was first developed in Bangladesh in 1999. It has now been implemented in more than 25 Latin American, Asian and African countries.
We used information from evaluations of this intervention in Mali, India, Tanzania, Bangladesh and Indonesia. The studies found widely differing impacts. These ranged from a 30 percentage point increase in toilet ownership in Mali to no detectable impact on toilet ownership in Bangladesh.
Using a measure of wealth for these countries, we found that sanitation interventions have larger impacts in poorer areas, such as Tanzania, and low or no impact in relatively richer areas, such as Indonesia. This supports the idea that targeting poorer areas maximises the impact of community led total sanitation.
Our research shows that while community-led total sanitation is effective in Nigeria’s poorer areas, there are two main challenges.
First, community-led total sanitation had no perceivable impact in the wealthier half of our sample. There, open defecation remains widespread. And second, even in poor areas, a large number of households still engaged in open defecation after the intervention.
This suggests that while community-led total sanitation can be better targeted, it needs to be complemented with other policies – subsidies, micro-finance or programmes that promote private sector activity in this under-served market.
African Music Platforms Soar As Spotify And Apple Snooze
Creators and consumers of music seek African online music platforms even as global entities and record labels hesitate to fully commit on the continent.
Africa is a continent of over a billion people, with a young, increasingly tech-savvy population that has growing spending power and a desire to find new ways of accessing a wider range of content. And, at a sociocultural level, music plays a huge role in Africa.
A ripe environment for major global players in the music industry, you would think, but things have been rather quiet around digital music on the continent.
Spotify only launched in South Africa last year, and its only other African markets are Algeria, Egypt, Morocco and Tunisia. Apple Music is still only available in the same handful of African countries as at the time of its launch.
Where these companies have, so far, looked on, others have filled the gap. Chinese company Boomplay, founded in 2015, through a joint venture between phone manufacturer Transsion and consumer apps firm NetEase, now has 42 million users across multiple markets on the continent, and recently secured $20 million in funding to break into more countries.
Locally and regionally focused platforms are also seeing traction. Key among them is the Nairobi-based Mdundo, which has more than 3.5 million monthly active users in countries like Kenya, Tanzania, Uganda, Rwanda, Zambia, Zimbabwe, Mozambique, Cameroon, Ghana and Nigeria.
The company works with 50,000 musicians across Africa and has signed a licensing deal with Warner Music Group.
The company’s CEO Martin Nielsen says the sector is seeing strong progress, with artists flooding to online platforms to distribute their music and labels paying more attention to the continent.
“We’re experiencing an increasing interest in Africa and the music industry, both from commercial partners, record labels, music distributors and global music services. This is a very positive development, Africa is next in line,” he says.
The growth of platforms like Mdundo, and the launch of new ones, has benefits for both creators and consumers of music on the continent. For artists, they provide new ways of getting their music out there.
Dumisani Kapanga is founder of the Malawi-based streaming platform Mvelani, which has almost 100,000 songs in its catalogue and claims to have at least 40,000 users each day. He says services like his have broken down barriers to entry for artists.
“It’s now easier than ever for musicians to put out music to their fans without relying on record labels to do so. Within minutes an artist can have their music on some of the biggest platforms out there. We are providing the means for artists to be heard easily, without the need for expensive middle men,” Kapanga says.
For consumers, it is ever easier to access music new and old, in a variety of different ways. Damola Taiwo, co-founder of Nigeria-based music downloads platform MyMusic.com.ng, says download platforms such as his own remain the most popular due to factors such as accessibility and affordability, but sees a future in Spotify-style streaming services in Africa.
“The download services seem to still be the preferred method, where individual tracks are downloaded on devices and permanently owned. This is probably due to the cost and quality of internet access on the continent,” he says.
“However, there are other more structured platforms that also exist where listeners consume music. Some of them are streaming services similar to Spotify and Apple Music while others are download services, or a mixture of both.”
What business model to pursue, and how to monetize, are key challenges faced by local music platforms, and the fact that there are, as yet, no clear answers might account for the wariness of the likes of Spotify and Apple Music to bet big on Africa. Taiwo says another key issue is the lack of major record labels on the continent.
“Most artists will fall under the ‘indie’ bracket, and even the ones that have record labels are more like a one-man business with a maximum of three artists. This makes licencing difficult as there are too many entities to talk to,” he says.
The diversity of what is loosely referred to as the “African consumer”, but is, in fact, a huge mass of people with differing tastes and preferences, also poses a problem for music platforms. Nielsen says there is a rapidly growing middle class that demands the same service that global music services offer, yet they are still very data-cost conscious.
“Plus many of the smart devices have limited storage, so we tailor-make our solution to their needs. In addition to that, we have a mass-market segment on our service with low-end smartphone devices that we see a huge potential in with simpler music offerings,” he says.
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