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Utilizing Mobile Money in Healthcare

Photo Credit: OpenIDEO

According to article released this week by Uganda Online, hospitals in Uganda are now accepting mobile money to pay for health expenses. While there are eight mobile providers in Uganda, four are providing mobile money services to their customers – MTN’s MobileMoney, Airtel’s ZAP, UTL’s M-Sente and Warid Pesa – with Orange Uganda planning on releasing their version of the service soon. In the article, a picture clearly shows that the hospital (Case Clinic) allows for mobile payments from MTN and Airtel. Other companies in Uganda are allowing for mobile payments – DStv (satellite TV provider), NWSC (water and sewerage) and Umeme (energy provider).

Utilizing mobile money in the health sector is nothing new. M-PESA in Tanzania has been used by the CCBRT Hospital to pay for patients’ bus ticket from rural areas to the hospital’s location in Dar es Salaam (the capital city). In Kenya, Changamka allows individuals to save and pay for health services by combining a medial smart card with M-PESA. In the Philippines, Smart Communications has partner with PhilHealth, a national insurance provider, to allow customers to pay their premiums via mobile money. This list continues as money mobile is being further employed in the health sector which includes insurance, vouchers program, and conditional cash transfers. The ability to save and pay via mobile money for health issues creates insurance for individuals and families that do not have access to typical insurance products. Mobile money has also been leveraged to pay nurses and community health workers serving in rural areas which helps with worker retention and decreases tardiness.

In the mHealth sector, this is a clear sign that innovative solutions can be shaped around current mobile products and services. Once mobile money has been established in countries, this opens doors for new businesses to be developed around the mobile money platform. The examples above show the need and desire for products that create the ability to both save and pay for health service. While the Ugandan example is not a revolutionary app (or killer app), it provides a necessary product so individuals and families can receive curial medical services. In this case, the ‘killerness’ of the service to using mobile money in the health care system is that it fits both the needs and infrastructure of Uganda, include accepting payments from multiple mobile providers.

January 27, 2012/by actualize

Agriculture, Mobile, Originally posted on the GBI Portal

Vodacom Tanzania makes money transfers easier

Vodacom Tanzania has launched a mobile version of money-transfer company Western Union to all their M-Pesa clients, which will allow them to send and receive money from anywhere in the world. At the moment, M-Pesa clients can only transact with 75 countries.

Vodacom Tanzania managing director Rene Meza (image: MyBroadband)

“We have introduced this service to our clients to give them access of sending and receiving funds even when they are abroad. If your mobile operator works with Western Union, using the mobile money transfer service could potentially be like having access to 200 countries and over 435,000 agent locations in your pocket,” said Vodacom Tanzania managing director Rene Meza.

Meza further added that the Western Union programme will make it even easier for users to send and receive money, as users don’t necessarily need a mobile phone to make transaction – the ways to send money include cash to mobile, mobile to cash and mobile to mobile.

Security is also of a high priority for Vodacom, as Meza added that users will be protected. “We want to guarantee our customers that even if the cash does not get into receivers’ hands you will get it back regardless the place. We do not want to know how much the client has in an account or any document in receiving funds.

Vodacom regional director for Eastern and Southern Africa Karen Jordan concluded with how easy it is to transact cash. “The clients can get cash from their relatives all over the world without any complicated approval. It is simple to any M-Pesa client to use as it has no limit of time in service so it is good for Tanzania’s economy.”

Charlie Fripp – Acting Online editor

December 9, 2011/by actualize

Agriculture, Agriculture Markets, Extension Service, Food Security, Mobile, Originally posted on the GBI Portal

Africa’s Agribusiness Dream: How can ICTs Help?

Photo Credit: Timbuktu Chronicles

Earlier this month, the Corporate Council on Africa (CCA) held its 8^th Biennial US-Africa Business Summit in Washington DC. One of the key focus areas at the summit was the agribusiness sector in Africa with sessions and workshops covering topics such as “Winning for Farmer Entrepreneurs and Investors”; “Partnering to Build an Integrated Agribusiness Sector”; “Financing a Dynamic African Agribusiness Sector”; “Removing Barriers to Create Opportunities in Regional and Global Trade”; and “Leveraging Development Assistance to Support Private Enterprise”. Stories and experiences from a number of participants who are already in the market in certain parts of Africa clearly show the increasing interest in changing Africa’s agricultural sector from an “AID Recipient” to a “BUSINESS Partner”. This of course, calls for a number of changes including the perception of agriculture by the smallholder farmers that need to be undertaken in Africa’s bid to revamp its agricultural sector.

As an agricultural information specialist, I followed with keen interest the proceedings at the said US-Africa Business Summit with special concern for agricultural development in the continent. What I saw and heard at the summit during the discussions on issues such as farmer entrepreneurship, partnership, financing, removing barriers for regional trade, and leveraging development assistance within the agricultural sector, seemed to be missing a major component – information and communication technologies (ICTs). In fact, one would have expected most of these discussions to have some element of ICTs as enabler or catalyst for the entire agricultural value chain. Especially given the Information Economy Report 2011: ICTs as an Enabler for Private Sector Development (PSD), published by the United Nations Conference on Trade and Development (UNCTAD) that pointed out clearly that the potential of leveraging ICTs to develop the private sector is far from fully exploited.

Access to information by smallholder farmers is key for producing high quality products to meet market specifications both locally and international. ICTs are key in gathering and delivering timely and accurate agricultural information for farmers to be able to do just that. Smallholder farmers are currently using ICTs in pre-production and production activities across the world that the business sector needs to exploit and leverage upon in Africa. This is being achieved through the reformed and modernized Agricultural Advisory Service (AAS), which connects local farmers to research, market, and policy. Popular applications that should interest companies and institutions interested in Africa’s agribusiness include Grameen AppLab Community Knowledge Workers; Farmer Voice Radio Project; M-Powering Farmers, and other radio services across the developing world.

Farmers also lack access to credit for their production and there are a host of financial services using the new ICTs to facilitate the flow of financial services to smallholder farmers in the developing world. Mobile payments, mobile money, or mobile banking applications are being used to make financial transactions more accessible, faster, and safer for rural farmers. These services also link farmers to financial services and make it easier for them to save money obtained from their farm activities for other social services. These are great opportunities for entrepreneurs and the business community interested in investing in Africa’s agribusiness to explore. Examples include the M-PESA currently operating in countries like Kenya and Tanzania; Mobile Money in Ghana, Uganda, Zambia and others.

Also worth exploring is ICTs for market. When one talks about business, the first thing that comes to mind is “market” and markets affect smallholder agriculture production from inputs supply such as seed, agrochemicals, farm machinery to the outputs or products delivery to the final consumer either in the local, regional or international market. Access to market information helps farmers find out about market prices, make decisions regarding when to harvest, how to negotiate with intermediaries, etc. ICTs models such as esoko in a number of Sub-Saharan Africa countries, e-Choupal and Reuters Market Light in India, Manobi in Senegal, Infotrade in Uganda, and Zambian National Farmers Union MIS are just the tip of the iceberg.

The traditional agricultural extension service, which has been a public platform over the decades, is undergoing a lot of reforms to create an enabling environment for the private sector to heavily invest in the ICTs sector. With the new models of agricultural extension reforms such as decentralization, privatization, commercialization, pluralism, and partnerships, there should not be any barrier for the private sector in using ICTs to enhance their agribusiness in Africa. American and European businessmen and companies interested in Africa’s agriculture should not make mistake by ignoring the importance of “information” in their business – ICTs can help when recognized and incorporated into the agribusiness plan!

October 31, 2011/by actualize

Agriculture, Mobile, Originally posted on the GBI Portal

Mobile Money Service: An Innovation for Rural Women

Photo Credit: Africa News

I remember vividly carrying bundles of millions of Cedis (Ghanaian Currency) in my car about 9-10 years ago, and driving from Tamale (the Regional Capital) to the remote rural communities to pay local farmers for their seed cotton during marketing. You can imagine all the risks involved in carrying such a huge sum of money across districts with no security – the danger of being attacked by armed robbers, the chance of loosing the money, the risk involved in counting and paying individual farmers accordingly without over or under-payment, the challenge with safe handling of these money by the local farmers themselves, the temptation of overspending the money by the rural farmers immediately after receiving their payments, and the risk associated with “banking” the money in their thatched houses.

Don’t forget about my earlier view of a typical ‘rural’ community – lack of basic social facilities such as credit union or banks. I saw my own mother ‘banking’ her money in some special plastic bags and hiding it from us (the children) and later discovering that the value of the money has depreciated such that she could not use it – don’t forget about the skyrocketing inflation rates in Ghana in the mid-late 80’ after the military coup. I also remember interesting stories of my cotton farmers about ‘banking’ their money in the home under mattresses and being discovered by their children; hidden in a pots and being destroyed by red ants and other insects; buried in the ground and forgotten or swept away by a flood; kept under the roof of their building and being destroyed by fire, among others.

Basically, rural women who are mainly farmers, have the challenge of banking or storing the money they obtain at the end of the farming season safely and inaccessible from others as well as from themselves. These rural women also at some point of their life, need to either send some of this income to their relatives outside their village or receive money from their children in the cities. This ability of transferring money to others, or location-shift one’s own money is also an issue. It is also important for the rural women to have sufficient money (or credit) available in the right format or currency when it is required, especially at the start of a new farming season or the beginning of school year where they have to spend on their kids. Finally, the challenge of actually making saving for future use and for purchases of more expensive farm equipments cannot be ignored.

How did the story change with Mobile Money Services?

Mobile money service is seen as one of the world’s fastest growing industries, following the success of the growth of the ‘mobile’ industry over the past two decades where billions of transactions are done using mobile devices. With leadership from M-PESA in Kenya, innovative mobile payment solutions that enable customers to complete simple financial transactions including person-to-person money transfer have been emerging and transforming rural lives. Mobile money services has its presence already in Ghana, Ivory Coast, Benin, Cameroon, Guinea Bissau, Swaziland, Uganda, Zimbabwe, South Africa in addition to Kenya with Liberia being one of the newest countries across Africa to adopt this innovation.

Rural women all over the world are now using mobile money services to facilitate their work. When asked about the mobile money service being provided to her by Lonestar Cell MTN and Ecobank Liberia Limited, a market woman has this to say:

“In trying out the Mobile Money service, I have been able to send money to my son in Buchanan to pay his fees at the Grand Bassa Community College where he is a student and not worry whether the money I sent would reach him. I found the service very effective, convenient and affordable. Clearly, this is better than any other money transfer service I have ever used” (Woman from Liberian Rural Community).

Within the mobile health sector, the application of mobile money service is seen in the use of Medical Smart Cards that allow people who have no access to medical plans or insurance cover to save money through the use of M-PESA transfers. Savings are used to pay for primary health care, specified laboratory tests and drugs at pre-contracted prices. A combination of mobile banking, public information, and free treatment are used in Kenya to give women access to fistula repair. Women can call a free hotline, and if money is needed for transport to a fistula unit this is transferred via M-PESA. Using mobile money services make treatment a reality for women who otherwise would not have been in the socio-economic position to get an operation.

A study conducted on the use of mobile money services in “Kenya Case Study: Who Is Using Mobile Money?” shows that slightly more than half of the mobile money market (56%) live in rural areas and 51% of the users of mobile money services are women. Another study conducted in Kenya in 2009 about the impact of mobile money on the rural people revealed that M-PESA is boosting their income through cheaper, more accessible, and safer money transfer options. The research also shows M-PESA is empowering rural women because it makes it easier for them to solicit and receive money from their husbands and other contacts in Kenyan cities. Remittances through M-PESA relieve many women in rural areas of the burden of traveling by bus to cities to receive money from their husbands, a process that for some could take as long as one week. Also the M-PESA mobile money transfer system is used in Tanzania for example to pay for the transport of women suffering from fistula, children with cleft palates and other disabilities.

The potential of mobile money in the Ghanaian market is so huge with an estimated 80% of Ghanaian being “unbanked” – meaning they conduct their transactions outside the banking sector with no access to financial services. Mobile money is reducing the transaction costs of financial services for Ghanaian in rural areas, saving the cost of travel and time spent visiting the nearest town to access financial services, providing people with a way to transfer money safely and keep (or even increase) their savings.

The Bill and Melinda Gates Foundation and the USAID-funded project in Haiti, Integrated Finance for Value Chains and Enterprises (HIFIVE) announced the launch of the Haiti Mobile Money Initiative (HMMI) to stimulate the development of mobile money services in Haiti in 2010. The following two stories show the outcome of this project:

In a cybercafé in downtown Port-au-Prince, Jean Yves deposits money into his TchoTcho Mobile account. Michel, his brother who owns the business, recommended that he register for this mobile money service so that he doesn’t have to carry money across town and risk being robbed. Taking his brother’s ad-vice, Jean Yves deposits cash at the cybercafé and withdraws it via his phone when he arrives at his final destination.

One hour away in the busy port town of Saint Marc, Carmen receives a text message saying that Mercy Corps has deposited US$40 of food aid into her T-Cash account. She picks up her bag and heads off to her local merchant to purchase rice and beans using her phone.

The USAID’s Fostering Agriculture Competitiveness Employing Information Communication Technologies (FACET) project which helps USAID missions and their implementing partners in sub-Saharan Africa to use information and communications technology (ICT) more successfully — via sustainable and scalable approaches — to improve the impact of their agriculture related development projects including Feed the Future projects, shares its experience with the use of mobile money in agriculture in “Using Mobile Money, Mobile Banking to Enhance Agriculture in Africa”. Also with the setting up of the mFarmer Initiative Fund, there is the hope that more rural women will have access to mobile phones and be able to utilize mobile money services to improve their lives.

A recent report “Mobile Money Transfers & Remittances: Markets, Forecasts & Vendor Strategies 2011-2015” by Juniper Research predicts active users of mobile money services to double in the next two years, exceeding 200 million worldwide by 2013. The principle behind mobile services including mobile phones and mobile banking with the structural support from information communication technologies is something that has come to change lives in rural communities in particular. Mobile money services have come to stay. Different models, applications, and innovations will evolve over the years for simplicity, ease of use, less costly, and more compatible to a variety of mobile devices across the developing world.

October 14, 2011/by actualize

Agriculture, Extension Service, Mobile Money, Originally posted on the GBI Portal

Rural Youth in Kenya, and the Impact of ICTs

We would be missing the full significance of ICTs if we do not see them as an integral part in the efforts to improve the everyday life of rural folk in Kenya. Mobile technology being the key mode of communication in the country has contributed greatly to local youth livelihoods. Using mobile phones, the youth have able to access knowledge and information which are vital aspects for improving agricultural development by increasing agricultural yields and marketing.

With accessibility of mobile phone networks throughout the country, services such as Safaricom’s mobile money transfer (M-Pesa), mobile money banking (M Kesho) and information on agricultural produce markets have created job opportunities for the youth as the number of agents increase.

Kamau a young Kenyan in his late twenties from a farming community in Nakuru who approached Equity Bank in 2007 for a loan to set up an M-Pesa shop is an example. As well as farmers and traders were enabled to deposit or withdraw money using their mobile phones, Kamau was able to pay back his start-up loan in just six instalments. “This is to bring financial services to a place where people lack them” he explains.

By simplifying money access, members of the community have more money at their disposal and therefore are more likely to spend it locally. The service has also enabled farmers and traders to purchase inputs and make orders with their suppliers without having to travel into town. The savings made on transport costs enable them to acquire more stock, which means that the entire community benefits from more goods being available locally.

Kamau’s business has also benefitted from transactions made by the farm owners residing in a nearby Nakuru town, who do not have to commute to the village to pay their casual labourers. These farm owners are also able to pay their faming supervisors for land preparation and purchase of fertilisers and seeds.

In 2008, the entire region of Nakuru experienced a severe drought, which led to widespread crop failure, and Kamau noticed an increased flow of money through his business due to remittances from relatives in urban areas. “This service has strengthened friendships and social interactions in the community,” Kamau says. “Moreover, this has greatly contributed to the success of my business. This means that the entire community benefits from the goods available.”

With the revenue generated by his M-Pesa business, Kamau has diversified into farming, now leasing 20 acres of land. He also receives information about husbandry practices from the Organic Farmer e-bulletin, published by the International Centre for Insects, Pests and Ecology (ICIPE), through his data-enabled mobile phone, helping him to grow maize, beans and potatoes.

The subscribed SMS-based ‘411 Get It’ alerts service, a joint venture between Safaricom and the Kenya Agricultural Commodity Exchange (KACE), also provides Kamau with information on agricultural produce and market prices, enabling him to identify favourable markets and cut out middle men. With the profits from his farm, Kamau opened an M-Kesho business, allowing community members to make deposits from their M-Pesa accounts into an Equity Bank account where they earn interest. “This is an incentive for rural youths to engage in farming,” Kamau adds.

During the planting and weeding season, Kamau’s operating capital is reduced as his customers increase their M-Pesa withdrawals. To counter this problem, Kamau took out another loan from Equity Bank to purchase a motorcycle so that he could travel to Nakuru town quickly to top up his M-Pesa account. As a result, he has a steady flow of cash in order to facilitate local business transactions.

Regardless of an increasing range of information services available through the internet, literacy remains a stumbling block for many people because these services are only supplied in official languages. The technologies therefore need to be adapted in such a way as to be accessible in a variety of local dialects to help farmers have easy access to modern farming information and technologies, especially to battle hunger despite dry spells. Access to ICT services would also help to foster local skill building and knowledge sharing between rural communities.

Kamau’s experiences and business understanding clearly show the important linkages and synergies that exist between the development of ICTs and information sharing that can support the livelihoods of a large cross-section of youth and other members of communities for agricultural and rural development.

By Chris Mwangi – I am affiliated to Agriculture, Rural and Youth in the Information society (CTA-ARDYIS Project). Its function is to raise youth awareness and capacity on agricultural and rural development issues in ACP countries through ICTs

August 12, 2011/by actualize

Agriculture, Economic Growth & Trade, Mobile, Originally posted on the GBI Portal

Africa’s mobile economic revolution…half way there?

The UK Guardian’s Killian Fox recently described the rapid rate at which cellphones became ubiquitous (and are used) in Africa as a “mobile economic revolution”.

Some people easily dismissed this assertion as another hyperbolic pronouncement, but there’s truth to it. The expansion of mobile telephony services and access over the last decade did more than merely open up avenues for efficient social inter-action among Africans. It reinvigorated, structured and even cultivated a more efficient culture of enterprise, across banking, agriculture, healthcare, education and governance, in some countries.

But, if this “mobile economic revolution” is to be fully realized, much more ought to be done. Deeper integration of technology into commerce, and greater expansion of telephony access and service provision are two things to consider, among others like financing and marketing that I have looked at in other blogs. The fact is, a half of all Africans still do not have access to a cellphone, despite the rapid expansion observed. This means the enormous economic benefits mobile phones bring to less developed parts of the world is still untapped in much of Africa. According to the London Business School, “for every additional 10 mobile phones per 100 people in a developing country, GDP rises by 0.5%”. So, the expansion in GDP experienced on the continent in the last decade, due to telephony expansion, is, at the very least, half of what it could be.

Furthermore, the depth to which the instrument (cellphone) has been leveraged for commerce is still limited, which means the economic potential is much greater than what obtains. The success of Safaricom’s M-Pesa in bringing banking services to the previously unbanked, for instance, is still limited to a minority of Africans. Further to that, global mobile money transactions is slated to exceed a trillion dollars by 2015. African economies are likely to benefit from cheaper transfer of remittances, and reduced transaction costs across borders, but those benefits will be much greater if more people have access to mobiles. Therefore, boosting the number of people on the continent with access to mobile banking must be a priority for policymakers, to safeguard the “mobile economic revolution”.

The deepening of the “mobile economic revolution” should be contextual. The provision of mobile-enabled financial services such as micro-credit is great, but it doesn’t always function in the poor’s economic interest. The use of mobile phones to offer traditional options, such as layaways, to help the poor improve their entrepreneurial endeavors is negligible. KickStart, a nonprofit that sells human-powered irrigation systems to entrepreneurial farmers, seems to be an exceptional case. The organization introduced an SMS powered layaway program in Kenya that allows buyers to set aside tiny increments via M-Pesa.

KickStart‘s approach to aiding farmers to finance their entrepreneurial endeavors seems much more sustainable, compared to existing micro-finance options, although the time factor is a drawback. However, the main point here is that, the “mobile economic revolution” must never leave the poor behind. The ways in which the individual’s long term economic livelihood is affected is key, if the larger objective remains that of sustainable development.

July 28, 2011/by actualize

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