Internet Revolution in East Africa

This April while in Rwanda I was amazed to see Rwandans of all ages digging ditches along the major roads and laying down fiber optic cable from gigantic spools. Since then, I have been fascinated by the internet revolution occurring in East Africa right this very moment.

I took this photo outside of Covanya, Indego Africa's partner coop in Nyamata, Rwanda.

Up until now, East Africa has been the only region in world not connected to the internet through undersea fiber optic cables. Instead, it relies on satellite connections, which I can tell you from personal experience are slow, unreliable, and expensive. But now several companies are competing to literally plug in Africa.

A company named SEACOM made the biggest bet on the market. James Watson writes in Wired Magazine: "The company’s sales proposition has been similarly audacious for a continent stuffed with telecom monopolies: offer an open access connection down the east coast, providing a link all the way back to London or out to Mumbai – all at just a tenth of current prices. It’s a hell of a bet. SEACOM is investing some $650 million in the project, way more than its main competitors. But it’s gambling, in part, on the huge benefit of being the first to market." It won that particular bet, going live just last week in five African countries -- Kenya, Tanzania, Mozambique, Uganda, and South Africa -- with Rwanda set to launch as early as this week.

The competing cables -- government-backed TEAMs (The East African Marine System), the Eastern Africa Submarine Cable System (EASSy), and Lion -- all expect to to be operational by mid-2010. Yet, as Watson notes, "[r]egardless of which cable rival gets there first, the ultimate winner will be African consumers."

Rwanda could be one of the biggest beneficiaries. Sarah Lacy writes in TechCrunch that "[i]n two years, every district of the country will be connected to each other and the Internet, something the United States can't boast," and that "Rwanda is emerging as an interesting test case on how a digital divide is actually being bridged in a methodical, well-thought out, step-by-step manner." Sounds good to me! And all the more reason why Indego Africa's training programs, particularly the computer-skills classes at our very own computer centers, are so important.

Want to learn more? Check these out. And please send in updates!

• "East Africa Gets Broadband: It May Make Life Easier and Cheaper," Economist, June 18th, 2009.

• "How to Cross the Digital Divide, Rwanda-Style," TechCrunch, June 24, 2009, Sarah Lacy.

• "The Cable Guy: How to Network a Continent," Wired Magazine, June 29, 2009, James Watson. If you like reading thrillers about pirates, sharks, robots, digital villages, and amazing feats of engineering, I recommend this article.

• "Kigali City to Go Wireless By September," The New Times, July 22, 2009, Saul Butera.

• "Sea Cable Ushers in New Internet Era," AllAfrica.com, July 23, 2009, Lee Mwiti.

• And a terrific roundup at the blog White African - "Reactions to SEACOM Going Live," July 23, 2009.

- Ben

Problems and Potential: Natural Gas at Lake Kivu in Rwanda

Lake Kivu forms the western border of Rwanda. It is a natural dividing line between the country and the Congo. Millions of Rwandans and Congolese live on the hills that slope down to the lake.

This story from Nature talks about the potential hazards that lie in the lake's depths: it's full of gas, some carbon dioxide but mostly methane, and these gases pose a substantial risk to local people. If they're released from the water, they have the potential to sicken or kill people and animals along the shoreline.

But, these gases--especially the methane--might also prove to be a valuable energy resource for Rwandans. Lack of reliable energy supplies is a major concern in the country as it tries to expand economic activity.

A question then becomes: can the gas be released safely so that businesses can capture it and turn it into electricity? The Rwandan government has already entered into concessions with energy companies to do this and these concessions are worth hundreds of millions of dollars. Scientists, however, disagree about the best technologies and strategies for extracting the resources and existing projects have had limited success. Here's a discussion of some of the problems.

Two issues come to my mind when I read this: (a) will methane provide another basis for resource-based conflict in an area with entirely too much resource-based conflict and (b) assuming an extraction process is identified that is safe and cost-effective, what mechanisms exist for encouraging accountability and transparency with regard to the income stream these contracts will generate? Or, will these projects devolve into financial boondoggles?

Rwanda needs more energy to do more business; careful development of these resources has the potential to further bolster the country's growing private sector.

- Karol

Reviewing Moyo's Dead Aid

The Nation has a reasonably sympathetic review of Dambisa Moyo's much-discussed new book, Dead Aid, at its website. Moyo takes the foreign-aid establishment, and its approach to promoting economic growth, to task. The review is particularly interesting in that this reviewer - Sonia Shah - expresses views that track much of what conservatives and libertarians also say about aid: it limits government accountability, promotes corruption, oftentimes does not generate the kinds of outcomes donors anticipate; and, may harm the strong bonds of social capital in aid-dependent areas.

While she takes issue with some of Moyo's suggestions (as most reviewers do) Shah notes that after hearing Ms. Moyo speak last month, Rwanda's legislators "vowed to limit" their dependence on foreign aid, opting for private investment as a more sustainable path to development.

- Karol

Harnessing Africa's Solar Energy

Here's a story from the Wall Street Journal about a new effort to bring solar energy from Africa to European markets.

A consortium of European energy companies will work together over the next three years to get this idea to market.

The article notes the project will likely face a host of problems (institutional as well as physical) but if it works it will bring much needed energy to North Africa as well as to Europe. Lack of reliable energy supplies is often listed by African businesses as a major, if not THE major constraint they face in growing their businesses so this is potentially good news for Africa's business community.

- Karol

Rwandan Agaseke Baskets & IP Rights

I love thinking about real and movable property issues, but spend much less time thinking about the complexities of intellectual property rights.

But here's an important reason (among many others) to think about these thorny issues: who, if anyone, should own patent rights over the justifiably prized Agaseke baskets produced across Rwanda by individuals working alone and with cooperatives such as Indego's partners?

This recent story says the rights will be held by the Private Sector Federation's Chamber of Craft, Art and Artisans. The idea seems to be to ensure the quality of basket production -- not to patent a novel idea, as the baskets are traditionally made in Rwanda, so the idea for them isn't new and literally thousands of people understand the process for making them.

So, back to quality control. I can see several potential problems with an approach that provides a monopoly privilege over the quality control of these baskets:

(a) How will the CCAA pass benefits associated with patent protection along to the artisans with whom it works?

(b) By patenting the basket will CCAA really just limit competition among baskets producers (to protect their Chamber members)? Is it, in other words, looking to create a cartel for basket production, which will likely lead to lower quality and higher prices for consumers and reduced opportunities for the women who produce the baskets?

(c) If quality control is a real issue, rigorous competition among different branded or otherwise identifiable producers should provide an easier way to identify which baskets are high-quality and which are not. Cooperatives rely on reputation as do other businesses. Alternately, an independent assessor (something like Underwriters Laboratories in the US) could certify the quality and baskets could be labeled with this certification (which would provide incentives to produce high-quality baskets without the cartel problems).

(d) Should the Chamber be able to patent a product that is part of the cultural heritage of the country? Many Rwandan women know how to make these baskets -- grandmothers have taught mothers who have taught daughters and granddaughters, etc.

I admit that IP poses many difficult questions, but in this case creating a patent right for these baskets is likely to create more problems that it would solve.

Here's a photo of a small agaseke basket I bought at Indego's Washington, DC event this spring.

- Karol

Kickstarter and the Marketplace of Ideas

Indego Africa is proud to be an original participant of Kickstarter, an innovative online funding platform grounded in the belief that (1) a good idea, communicated well, can spread fast and wide, and (2) a large group of people can be a tremendous source of money and encouragement.

This is how it works: someone posts a project/idea, a deadline, and an amount of $ they want to raise by that deadline for their project. Anyone can then make a pledge towards the goal. If a project has reached or exceeded its funding goal when time expires, all backers' credit cards are instantly charged and funds go directly to the project creator. If funding doesn't succeed, all pledges are immediately canceled like nothing ever happened. That's it! I love Kickstarter because it takes Justice Oliver Wendell Holmes Jr's (right) notion of a "marketplace of ideas" and finds a way to reward the winners with what they need: funding.

This is where you come in! Indego Africa currently has $400 out of $600 pledged to cover the expenses of four of our Orphans of Rwanda interns for three months. But if we don't get that additional $200 by August 1, we get NOTHING! And no one wants that. Please take one minute (it's that fast) and check out our Kickstarter project (you can click on the graphic below). Even $5 gets us closer to the $600 goal!

A note on just how easy and secure your pledge is on Kickstarter: "Amazon.com processes all the pledges on Kickstarter. When you decide to make a pledge, we'll quickly take you to Amazon.com to confirm. If you have an Amazon.com account this takes only a few clicks. If you don't have an Amazon.com account, Amazon will ask you to register during the pledge process, but it's relatively painless. You won't need to do anything annoying (like stop in the middle and check your email)."

Thank you!

- Ben

Indego Africa at BBYO's International Leadership Conference

This past Tuesday I was honored to get the chance to speak at BBYO's International Leadership Training Conference (ILTC) - an intensive two-week program located in a beautiful northeastern corner of Pennsylvania for almost 200 high school student leaders from around the country. These young leaders were great, asking a number of challenging questions about Africa, Rwanda, social enterprise, legal structures, Web 2.0, careers, and how they could get involved. I told them a little bit about my unique path to social enterprise in Africa - from studying photography to editing astrophysics to practicing corporate law until, in 2008, my incredible law firm, Orrick, agreed to sponsor my full-time employment at Indego Africa. Thank you to BBYO for the great experience. I hope to hear from these young leaders soon!

- Ben

Interview with Orphans of Rwanda Interns

Orphans of Rwanda -- an international NGO dedicated to helping orphans receive a university education and become leaders in driving economic development and social reconciliation -- recently published an interview in their newsletter about the ground-breaking partnership with the Indego Africa. Check it out!

ORI Students Thrive in Internship Opportunities

Three ORI students—Yves Ndashimye, Emmanuel Mukomeza and Valens Rutazihana—are currently working as management interns at Indego Africa, an organization that empowers Rwandan women by helping them sell their handmade baskets abroad.

These students, all of whom attend the School of Finance and Banking, have had a significant impact on Indego’s work. Yves and Valens are responsible for conducting weekly management training for the women, and Emmanuel leads computer and accounting workshops. According to Megan O’Connor, Indego’s in-country coordinator, “They are doing a wonderful job working with the women in ourprogram. I have already seen noticeable improvements from their work, most notably in the women’s accounting skills and in the development of a better organizational system.”

Yves at Covanya.

Kimberly Greenberg, ORI’s Development & Communications Associate, spoke with Yves, Emmanuel and Valens about their experiences.

KG: Can you explain how Indego Africa works?

Emmanuel: Indego Africa has several cooperatives around Rwanda and it is free for women to join. Once a woman joins a cooperative, she goes through training and can begin making products like baskets. The women share the profits and use them to pay school fees for their children. Many genocide survivors use their income to help orphans in their communities.

KG: What are your responsibilities at Indego Africa?

Valens: We train women every Thursday, and after each training session, we discuss life issues with the women. For example, if a woman is ill and does not want to go to a hospital because she is afraid, we will encourage her to go to the hospital and take care of herself. We solve problems together. The women are comfortable with us and we use our knowledge to help them.

KG: How have your experiences working with the women affected
your own lives?

Yves: We have gained experience and new skills while helping improve the lives of others. I have especially improved my management skills, and I believe this experience will help me when I apply for jobs after I graduate.

Emmanuel: Also, because we are Rwandese, we have a cultural tradition that makes us want to help others, because we have already become courageous in our own lives. We are motivated because we know that we can achieve what we want in our lives. We want the women to improve the quality of their lives, and we try to teach them that it is better to be united.

Valens: I enjoy working with the women. After finishing my studies, I hope to work with poor people to improve their economic well-being. I would also like to create my own organization.

Emmanuel.

- Ben

Google Plus Grameen

Here is a GREAT story: Grameen partners with Google to provide useful applications to cell phone users in Uganda who do not have internet access. Called the AppLab project, this is another chapter in the wonderful story of the spread of cell phone technology in sub-Saharan Africa. (the photo is from the Grameen Foundation and shows people in Uganda using the new products).

What kind of apps? This is so cool: a searchable database with agricultural info and weather updates, sexual and reproductive health information, market information to connect smallholder farmers to potential buyers, and an app to find nearby health clinics.

Prices for SMS inquiries to the various databases are fairly low -- about 110 Ugandan shillings (5 cents US) per inquiry. Imagine being able to send an inexpensive message asking if your sick child -- who has a fever and some vomiting or other symptoms -- needs to visit a clinic OR can be treated at home? Without the service your choices are stay home or (in many cases) walk for hours, with the child tied onto your back. How emotionally and physically liberating is that SMS message? Or, imagine being a farmer looking for the best outlet for your banana crop: should you travel to Kampala or Masaka? Where can you get the best price? Now farmers will know, thanks to this innovation.

Wow. The Washington Post picked up the story also.

- Karol

UNCTAD on African Regional Development

The United Nation's Conference on Trade and Development (UNCTAD) has recently issued its 2009 Economic Development in Africa report.

Key highlights include the following: intra-African trade is lower than is regional trade in other parts of the world. More regional trade will create opportunities for African countries to diversify their economies and lower risks associated with trying to do too many things domestically (i.e., undue some of the costly mistakes associated with past policies such as import substitution). Making foreign direct investment -- particularly investment from other African investors -- easier and more secure would promote economic development as would improvements in African infrastructure.

Happily, the report calls for support for increased labor mobility -- allow more workers to move across borders in search of opportunity -- a policy which, if enacted would lead to "a win-win situation for all actors involved." (p. 87).

The entire report is downloadable here.

- Karol

Social Entrepreneurship: Too Anglo-Saxon?

The Chronicle of Philanthropy has an article questioning whether the social entrepreneurship movement is inclusive enough. In particular, they pick up on an discussion from the Skoll Foundation's Social Edge website which asks whether or not there are too many Anglo-Saxons involved. If most of the people writing and speaking about social entrepreneurship are British and American, does that limit learning opportunities, access to innovative ideas, and beneficial give and take with people from other parts of the world? (Photo is of Nobel Laureate Wangai Maathai and full disclosure requires me to admit that, as an American, I'm yet another Anglo-Saxon working in this area).

Ashni Mohnot of Stanford's Martin Luther King, Jr. Research and Institute believes that in fact there is an undesirable disparity in social enterprises. As reported in the story, she says:

“The field of social entrepreneurship, as currently structured, is tending to exclude from participation and representation the following: people without finance experience and/or MBA’s, young college students and recent graduates, the poor and disenfranchised, who form the very clientele of social ventures, and people of color and/or practitioners from countries other than the U.S. or the U.K.”

This is certainly not the case at Indego Africa, but Indego is distinctive in many ways. Other organizations may be different. But wouldn't it be counter-productive to keep creative people, whether young, old; with MBAs or without; or people of color out of an organization whose mission is to do the most good possible? As with any business, aren't social enterprises looking for the best people they can find?

A very cursory review of exceptionally innovative social entrepreneurs includes Maria Otero (founder of Accion), Muhammad Yunus, Mo Ibrahim, Jocakin Arputham (of India's slum dweller's association) and Wangai Maathai. So, while there may be enormous interest in social entrepreneurship among Americans and the British, key innovators in the field come from across the globe and every walk of life. There is no entrance exam or club membership required to be a social entrepreneur -- instead, social entrepreneurs need vision, drive, and talent -- not qualities confined to the Anglo-Saxons by a long shot.

- Karol