Invested Development

New ID Website and Blog

2012-01-10T10:20:00.001-05:00

With the new year upon us, it's the perfect time to launch our new website and accompanying blog at Invested Development.

Please visit our revamped page at http://www.investeddevelopment.com/ and our new blog at http://investeddevelopment.com/blog/ (RSS: http://investeddevelopment.com/feed).

Update your bookmarks and RSS feeds! Thanks for following Invested Development.

Weekly Review January 1-7

2012-01-06T11:44:00.000-05:00

Since we wrapped up the year with a Weekly Review on Africa’s prospects for prosperity in 2012, this week we’re taking a look at India. In renewable energy news, the common trend is the focus on India – this week was no exception. We think (and it seems the media agrees) that the clean tech industry will present significant opportunities for investment and development in India.

Photograph: Rafiq Maqbool/AP via The Guardian

“Rural India Turns to Solar Power” by Sonia Narang on PRI’s The World NPR

India enjoys over 300 sunny days each year. Business solutions are increasingly allowing residents in rural, off-grid areas to take advantage of this renewable and natural resource. This article illustrates a simple example of how lighting extends working hours for a rural Indian silk farmer, and increases his productivity and income.

“Solar ATMs Bring Change(s) to Rural India” by Jaymi Heimbuch on TreeHugger

An interesting intersection of solar energy and branchless banking, rural India is highly receptive to solar-powered ATMs. Vortex Engineering (whose tagline is “helping banks reach out”) created a solution called “Gramateller” (gram meaning “village”). A Gramateller requires just five hours of sunlight a day to keep the solar ATM charged. The State Bank of India bought 400, allowing for the disbursement of government payments in remote areas.

“How solar power can help the billion people without electricity” by Carl Pope on The Guardian Environment Network

Following last month’s Durban climate change talks, the mainstream media is catching onto the demand and need for renewable energy in emerging markets. Even better, news stories are also capturing the benefits of energy’s contribution to poverty reduction. The Guardian highlights “pay-as-you-go” business models, as Simpa Networks is making famous, for their hand in moving the adoption of clean, reliable energy forward in India.

“Solar PV & Remote, Distributed Microgrids Poised to Improve Living Conditions for Millions” by Andrew Burger on CleanTechnica

CleanTechnia assesses forecasts from Pike Research, determining that the future is bright in emerging markets. In India particularly, solar is now cheaper than diesel. Research shows that the declining cost of solar will promote distributed energy and rural microgrids. Most importantly, CleanTechnia acknowledges that private investment will “help spur growth and demand” and push the adoption of innovative energy infrastructure, accelerating economic development.

Weekly Review December 25-31

2011-12-30T12:00:00.001-05:00

It’s the last week of the year, and we are surrounded by reflections on 2011 and resolutions for 2012. Here at Invested Development we have both. Our main ambitions for 2012 are to open our third office in India and test some innovative investment structures tailored especially for the techies in Nairobi. While we are excited about the prospects in India, Africa has made the biggest leaps and grabbed the headlines this year, notably from hopeless to hopeful.

“Wealth and poverty in Africa – interactive” by Claire Provost and the Guardian interactive team on The Guardian Global Development

Wrapping up 2011, The Guardian posted several interactive charts highlighting Africa’s development. In addition to pulling World Bank Indicators, the charts also show which other world economies grew at similar rates to the African countries. For example, South Africa and the United States both experienced GDP growth of about 3%. Ethiopia and China both experienced GDP growth of about 10%. Check it out for projected GDP growth in 2012, economic inequality, stats on the growing middle class, and more.

Source: The Guardian

“Africa’s quest for prosperity” by Calestous Juma on The Guardian Poverty Matters Blog

Local Harvard professor Calestous Juma writes in The Guardian on Africa’s transition from hopeless to hopeful. Professor Juma cites the two most important trends to watch are expanded regional markets and “improved strategies to harness the continent’s diasporas as source of technical expertise and business networks.” Initiatives such as the “Cape-to-Cairo grand free trade area” and heavy investment in infrastructure (particularly new fiber-optic cables) will make the continent stronger. Despite the challenges and large capital requirements for development goals, the diaspora and regional integration has the potential to foster sustainable regional growth in 2012.

12 Predictions for Africa Tech Scene in 2012” by Mbwana Alliy on Afrinnovator

Looking back on 2011, Mbwana Alliy offers his predictions for Africa in 2012. Originally from Tanzania and currently working in Silicon Valley, his predictions for 2012 are valid and we hope he’s right. Smartphone adoption, the evolution and maturity of mobile money, and mobile commerce are trends that we have watched closely in 2011 and we are confident in continuing to pursue them in 2012. As we are already seed stage, impact-focused technology investors, we do not doubt that many others will be following this trend. Alliy’s predictions are worth the read as they offer valuable and candid insights not found in The Economist or the Guardian.

Happy New Year!

Weekly Review December 18-24

2011-12-23T12:46:00.000-05:00

This week, we took a look at technology stories that will improve the African lifestyle.

“Three lessons for innovators & techpreneurs: Learning from Ushahidi’s history” by Will Mutua on Afrinnovator

Well done to Ushahidi on raising a $1.9 million round from Omidyar Network. However, as we know, not every Kenyan techie success story is carried with the same glory and ease demonstrated by M-PESA. Ushahidi’s experience is a great example of the efforts that go into the technology, the pitch, and the business model, and the repeated revisions and improvements. Afrinnovator offers insights into three lessons Ushahidi learned and how future innovators can learn from them.

“Dispelling the Top Five Mobile Money Myths” by Ignacio Mas on NextBillion

Interestingly, there are still some doubts about the effectiveness on mobile money (not everywhere is a “Kenya”). Ignacio Mas on NextBillion clarifies the myths that the unfamiliar may assume about mobile money. Measures are in place to prevent money laundering. It’s easy to learn on a familiar tool. It’s safer than hiding cash under mattress. In short, mobile money is useful in its simplicity and that is what makes it so effective.

“MTN selects Fortis for mobile money service in Nigeria” on Mobile Money Africa

MTN, one of Africa’s largest mobile network operators (MNOs), has signed an MOU with Fortis to provide mobile money services to its customers. Fortis is a leading provider of microfinance in Nigeria. The combination of the extensive agent networks should lead to a successful rollout of mobile money in Nigeria.

“Airtel launches mobile banking service in Ghana” on The Paypers

Airtel Ghana is now providing mobile commerce services. The Airtel Money platform will allow customers to pay bills, transfer money, and withdraw money from ATMs.

“Africa: ICTs Could Fill Agricultural Extension Gap, Says Meeting” by Maina Waruru on AllAfrica

ICT tools such as mobile phones, mobile broadband, and tablets can provide real time information to rural farmers. We’ve seen such agri-mobile application as mFarm, showing that innovation is coming from the bottom up. Now the idea is supported by the Technical Centre for Agriculture and Rural Cooperation, who is calling for the distribution of ICT tools to rural African farmers. African governments should be spending 3.5 percent of GDP on agricultural extension services, as agriculture generally accounts for 30+% of the continent’s GDP.

Weekly Review December 11-17

2011-12-16T13:15:00.000-05:00

This week, headlines on technology and mobile phones in India caught our attention. The innovations and solutions to existing problems in the market continue to inspire us.

“India’s ‘missed call’ mobile ecosystem” by Katie Fehrenbacker on Gigaom

This article called a missed call “the poor man’s text message” in India. The missed call is a great example of users in emerging markets taking advantage of the resources available to them. Although it means extremely low average revenue per user (ARPU), every telecom’s nightmare, it presents significant opportunities for innovation from social entrepreneurs.

“The World’s Cheapest Tablet, Finally on Sale” by Margherita Stancati on WSJ India Blog

We first reported on this back in October, and now it is officially on the market. Aakash, the US$35 Android tablet made by DataWind is now available for sale. An upgrade is coming in the New Year, but this tablet should make a significant splash in India. You can order one here.

“Pursuing a world of mobile wallets” on Times of India

Mobile phones are integrated into almost every aspect of daily life in India, yet there is still more room for mobile phones to provide valuable services. For example, mobile banking seems to be playing a critical role in the quest answer for mass financial inclusion. This article in Time of India points to trends that would lead to the mobile phone and mobile wallets being in all facets of business and government.

“Better broadband penetration to help reduce costs of financial inclusion: Montek Singh Ahluwalia” on The Economic Times India

The Planning Commission Deputy Chairman Montek Singh Ahluwalia is pushing for increased broadband and mobile penetration in India. Ahluwalia believes this will ultimately promote financial inclusion, while lowering the cost of doing so. This will eventually enable all citizens to receive the benefits of financial exchanges.

Thanks to everyone who came out to CleanTechThatMatters on Wednesday! We were delighted with the turnout and excited about all of the projects we heard about. Keep an eye out for the next one!

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Rich People, Nerds, and the Kenyan Context: Thoughts from the Nairobi Office Part 4

2011-12-13T09:00:00.001-05:00

Editor's Note: This is the last post in Sean Smith's series from the Nairobi office. Catch up on anything you missed by clicking the links below.

Part 1 - An East African Silicon Valley

Part 2 - The Rich People

Part 3 - The Nerds

The Kenyan Context

These groups of Rich People and Nerds are slowly beginning to identify each other. They are slowly feeling each other out and gaining a better understanding of early stage investment and how to use it. Yet, the fact that these groups exist and are starting to build off each other is not what is most exciting about Kenya. What is most interesting is that this activity is unfolding in a country of technology adopters.

James Surowiecki of the New Yorker wrote an article titled "Innovative Consumption" in which he outlines why the United States has consistently been able to produce innovative companies like Dropbox. In essence, he points to the willingness of Americans to embrace new technologies as an oft-overlooked factor in America's history of cranking out innovative technologies. I would argue that the same mentality of technology adoption exists today in Kenya.

The most obvious example of a technology adopting culture lies with M-PESA. In just four short years M-PESA has gone from pilot to almost complete penetration of working age adults. The service has already facilitated more transactions within Kenya than Western Union has throughout the entire world. To be honest there are probably many factors that led to this success (the regulatory environment, Safaricom's dominant market share, etc.), but one would be remiss to ignore the fact that overwhelmingly Kenyans put their trust, and their hard earned cash, into an untested technology. For a more scientific piece of evidence I'd like to point to Intel's "Technology Metabolism Index," which maps how technology diffuses through the total population of a given country once introduced. Kenya received a +5, the highest possible rating for diffusion of new technologies.

While it may seem a bit ridiculous to many Americans that anything like Silicon Valley could spring up in East Africa, our team at Invested Development is confident that these three forces are going to lead to many more success stories coming out of Kenya. We’re just excited to be a part of it.

#CleanTechThatMatters is on December 14th.

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Update:

Part 1 - An East African Silicon Valley

Part 2 - The Rich People

Part 3 - The Nerds

Rich People, Nerds, and the Kenyan Context: Thoughts from the Nairobi Office Part 3

2011-12-12T09:33:00.002-05:00

Editor's Note: This is the third installment of Sean Smith's series on Rich People, Nerds, and the Kenyan Context. Be sure to catch up on Part 1 and Part 2 if you missed them.

The Nerds

The Rich People are only relevant and useful if there are large numbers of "Nerds" that are hacking away at new technologies and scheming how to launch the next big thing. One of the most remarkable things about Kenya is that the term "Nerd" and some of its negative connotations seem to have little or no relevance here. Rather, to be a techie, to sit and write lines of code is exciting, hip, and a path to generating a stable income. The university and technical college ecosystem in Nairobi is graduating hundreds if not thousands of Computer Science majors each year. When you factor in the additional training that can be found at Safaricom Academy, Samsung's newly announced Engineering Academy, the eMobilis Mobile Training Academy, and m:Lab's Trainee Program (amongst others) what you get is the nearly 6,000 members of the iHub who proudly call themselves techies.

These techies are part of a Kenya that prides itself on innovation, entrepreneurship, and technical acumen. They are intelligent, tech savvy, and hungry to create Kenya's next great success story. They earn a better income than many their age simply by shopping themselves out as freelancers while hacking away at their own ventures on the side. In Nairobi, to be technical is cool and people are getting technical in a hurry. If you drop by any of the numerous training sessions in Nairobi you are as likely to meet a taxi driver learning to code as you are the hunch backed, introverted stereotype we identify as "Nerds."

Check back tomorrow for the final post in the series.

#CleanTechThatMatters is on December 14th.

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Update:

Part 1 - An East African Silicon Valley

Part 2 - The Rich People

Part 4 - The Kenyan Context

Weekly Review December 3-10

2011-12-09T13:28:00.002-05:00

In honor of our upcoming event, Clean Tech That Matters, it’s only appropriate to report on articles discussing clean tech and alternative energy opportunities in emerging markets. Anytime you can get a group of ambitious techies, entrepreneurs, and investors in the same room, seeking extraordinary innovations in a time of favorable policy developments and continued market growth, it’s a time for celebration. If you like what you’re hearing, come find out more at Greentown Labs in Boston on Wednesday, December 14. Find out all the details here.

“Africa: €400 million being raised for renewable energy; 6.5 MW PV project underway” by Beck Stuart on PV Magazine

NextEnergy Capital is working to raise a fund for renewable energy projects in Africa. About 80% of the funds will be invested in infrastructure projects; the rest will be invested in early stage technologies with the goal of bringing them to the African market. The fund manager is already working with European Merchant Bank to develop a €18 million 6.5 MW photovoltaic project in South Africa. Check out the article to find out all the details on the investors and other plans for the fund.

“Power out of Africa” by Andrea Chipman on The Wall Street Journal

There’s no denying that Africa presents a huge opportunity for renewable energy development. The continent is described appropriately as a “blank canvas,” since infrastructure is currently unreliable or nonexistent. Meanwhile, renewable energy is increasingly cheaper, safer, and more efficient. In addition, most Africans are not connected to the grid and rely on diesel generators, costing them $1.00 per kWh, while solar PV power would only cost $0.20 per kWh. The difference in adoption usually comes down to the upfront expenditure cost differentials (PV is more costly upfront, but cheaper on an average cost of energy basis), which is why such solutions should be supported by government subsidies to promote adoption. An interesting article coming from the Wall Street Journal, it offers a great summary of renewable energy in Africa.

“African nations move closer to EU position at Durban climate change talks” by John Vidal and Fiona Harvey on The Guardian

Climate change talks are very relevant to clean energy development in emerging markets, as developing countries are holding higher stakes and having a greater influence. The UN’s Framework Convention on Climate Change in Durban, South Africa Conference of the Parties (COP17) wraps up this week. Propositions from COP17 include extending the Kyoto Protocol’s carbon reduction targets beyond 2012 and setting up “a new green fund ‘to keep Africa safe’ from climate change.” It’s very important that Africa plays a critical role in international talks as it is the continent that will be most deeply affected by climate change. The Guardian’s overview offers a great overview of the highlights from the talk so far, and we’re looking forward to seeing the outcomes. (NB. This is only the second time the COP has been held it Africa. It was held in Nairobi, Kenya in 2006).

“Econet to launch prepaid home ‘power station’” on TechCentral ZA

Econet Solar is a subsidiary of African mobile phone operator Econet Wireless. The subsidiary has launched a first-generation prepaid solar-powered home power station. It allows users to light their homes and charge their phones. Customers will pay for energy in a similar fashion to buying airtime. This is very similar to Simpa Networks’ Progressive Purchase Model, which actually allows users to work towards ownership. Both solutions overcome the financial barrier of the up-front cost of the system.

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Rich People, Nerds, and the Kenyan Context: Thoughts from the Nairobi Office Part 2

2011-12-08T09:00:00.004-05:00

Editor's Note: This post is the second installment in Sean Smith's series on Rich People, Nerds, and the Kenyan Context. Click here if you missed Part 1.

The Rich People

The most important kind of Rich Person a startup hub can have is successful technology entrepreneurs that are looking to support new startups. Often, this is subject to a chicken and egg dilemma. Without support, introductions, and investment from successful industry veterans it is a difficult path for startups to find success. Kenya, however, seems to be on the verge of graduating its first class of successful technology entrepreneurs. Organizations like Kenya Data Networks, the Wananchi Group, Seven Seas Technologies, Craft Silicon, Cellulant, and Ushahidi have all been successful and are looking to support younger entrepreneurs. In various ways, the founders of these companies are looking to invest in entrepreneurs and offer various support structures to help them grow.

Beyond just investment capital, support is offered to the tech community in the form of Njeri Rionge's Business Lounge, Ushahidi's iHub, the Plexus Group, 88mph, the m:Lab, and any of the other half dozen incubators currently in the works. It is on the back of these support structures that young, creative entrepreneurs will be able to leverage the necessary funds, mentorship, and connections to launch successful tech enterprises.

Check back tomorrow to learn about "The Nerds."

#CleanTechThatMatters is on December 14th.

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Update:
Part 1 - An East African Silicon Valley
Part 3 - The Nerds
Part 4 - The Kenyan Context

Rich People, Nerds, and the Kenyan Context: Thoughts from the Nairobi Office Part 1

2011-12-07T10:15:00.004-05:00

Editor's Note: This is the first post in a series from Sean Smith, who recently moved to Nairobi, Kenya to open Invested Development's East African office.

via Wikimedia

Having recently moved to Kenya to establish ID's first international office, I am often asked by friends, family, and colleagues a simple question, "Why Nairobi?” My answer is often just as simple, "Because Nairobi is positioning itself to become the Silicon Valley of Africa." What isn't so simple is the justification behind such a claim. So I'd like to take a crack at explaining exactly why and how Nairobi is rapidly forming into a vibrant and compelling startup hub.

In Paul Graham's essay "How to Be Silicon Valley," he mentions there are three factors needed to replicate Silicon Valley: Rich People, Nerds, and the right Environment. The Rich People have the money and, ideally, the expertise to mentor and seed the Nerds, whose ideas are the foundation upon which companies are built. Graham argues that it is the interplay between these two groups, in a supportive environment, that drives high growth startups. If a city can duplicate that, he says, then any city can be Silicon Valley.

Check back tomorrow to read about "The Rich People" and why they're important.

#CleanTechThatMatters is on December 14th.

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Update:
Part 2 - The Rich People
Part 3 - The Nerds
Part 4 - The Kenyan Context

Weekly Review November 27-December 3

2011-12-02T08:30:00.000-05:00

After last week’s regional focus on Africa, this week we focused our reading on social enterprise and development in Latin America.

“Latin America Report: Ready for Explosive Growth” on Renewable Energy World

Many Latin American nations are reducing their reliance on fossil fuels and by transitioning toward renewable energies like wind, solar, geothermal and biofuels. Wind energy prices are increasingly competitive, especially in Brazil, which are expanding so rapidly that wind farms may very overtake natural gas thermal plants in the next 5 years. With high hopes for solar, Renewable Energy World is launching a weekly report on Latin America. Watch out for in on Wednesdays.

“Rural Peru gets connected” by Mattia Cabitza on The Guardian Poverty Matters Blog

Revolutionizing life in Peru, where one in four people live without electricity, 130 rural communities are benefitting from the Euro-Solar Programme. The program reaches “more than 300,000 people whose communities are not connected to the electricity grid.” Each community received solar panels and the free EU kit, which allowed them to run dozens of electronics, including an antenna for satellite Internet. The investment of ~$47.6 million is also benefiting seven other Latin American nations.

“Survey shows confidence in SMEs amount banks in South America” on MicroFinance Focus

SMEs in South America will be crucial to the development of the region, according to a survey of 170 regional banks that are looking to increase their credit portfolio in the sector. This year, 89% of banks actively lend to SMEs, up 13% from 2008. This type of support and confidence in the SME sector helps foster entrepreneurship and continued growth in the region.

“Latin America poverty level lowest in 20 years, says UN” on The BBC

According to Eclac, the UN’s regional economic body, there are 177 million people living in poverty in Latin America. That’s 31.4% of the total regional population. The good news is that level is down from 1990, when 48.4% of the population lived in poverty. Poverty and inequality are on the decline, but to maintain this, there is a need for employment in high productivity sectors. See Eclac’s report for full details: Social Panorama of Latin America 2011 (PDF).

If you’re in Boston, don’t forget to sign up for our event #CleanTechThatMaters on December 14! Find out more here.
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Poverty-Fighting Mobile Transaction Systems (Part 4): Social Capital

2011-12-01T12:38:00.000-05:00

This is the fourth post in our series, “Leveraging Mobile Penetration at the BoP for Poverty-Fighting Mobile Transaction Systems.” Click the links below to catch up on anything you might have missed.

Social Capital - Networking and Participation

As we introduced in the first post, the key to a successful mobile technology applications to alleviate poverty is the exchange. In the case of networking and participation, an exchange is the receiving and sending of ideas and opinions and the power to organize or participate in the community.

Mobile phones create powerful social networking opportunities. Mobile applications can offer users the opportunity to leverage their networks for referrals and create opportunities for peer lending. Social networking tools, everything from SMS to Facebook, facilitate organization and participation, as we witnessed during Egypt’s Arab Spring Revolution. Leveraging mobile ubiquity to expand on social capital reaps many benefits for users in a community where communication tools are limited.

The mobile phone with its most basic feature, SMS, promotes impact by creating an exchange. NGOs and governments around the world have used SMS texts to inform and alert populations to serious alerts. For example, FrontlineSMS and Jana (both discussed in this Weekly Review) allow businesses and NGOs alike to communicate with their target market in developing countries. FrontlineSMS prompts consumers to participate and engage through a platform that allows NGOs and businesses to send group texts, asking questions and opinions to a large mobile user base. Similarly, Jana (formerly Txteagle) collects market research data with mobile phones by allowing businesses and NGOs to distribute surveys via SMS with promotional incentives.

Tying It All Together - Mobile Ubiquity and Reducing Poverty

It is clear that mobile phones provide many benefits to users at the base of the pyramid. In the United States we have access to such benefits and resources not only through mobile phones, but by many other mediums. We can network on LinkedIn, search for jobs on Monster, read reviews of local service providers on Yelp!, take surveys to get coupons, borrow from a bank, use and build credit, and transfer money in seconds on our online banking applications. While some may argue that these seem to be simply promoting consumerism, the key point to highlight once more is the exchange. To reiterate Dr. Harish Hande’s philosophy, we must allow the poor to create their own wealth by giving them the tools to do so. With a mobile phone at the fingertips of over 70% of the world and a growing community of social innovators, we can create mobile technologies for sustainable global development.

What other ways can we leverage mobile ubiquity to create poverty-fighting technology?

Weekly Review November 20-26

2011-11-25T14:20:00.002-05:00

Every week, we read about the subtle signs of development in Africa. Here is the round up from this week, featuring everything from renewable energy to mobile money.

“Looking to Africa for innovation” by Nikki and Rob Wilson on The Guardian

The common school of thought believes that Africa should borrow from Western ways of thinking to promote development. On the contrary, there are many social systems and informal economies in place that are allowing Africans to make a living in ways we can’t imagine. Read the article for several examples that will really get you thinking.

“Ethiopia launches six wind power projects” by The Africa Report

Our blog post last week touched on the Ethiopian government’s capacity to increase mobile penetration in the country over the next five years. Another major problem the country faces is the severe under-electrified population. Now, the Ethiopian Electric Power Corporation has launched six wind power projects and one geo thermal plant to generate 1,015 megawatts of renewable energy. A $300M USD project, it would propel the country to be a top exporter of green power.

“It’s not yet mPesa: mKesh, Mobile Money in Mozambique is Slow to Take Off” on Mobile Active Blog

It is likely that we will never see another mobile money service provider with the same dominant success as M-Pesa. It is interesting to see how new markets are hosting mobile money services. Mozambique, for example, is seeing intensified efforts to push the adoption of mobile money. The state-owned mcel launched mKesh and now has 41,000 registered customers and 2,700 registered agents.

“Durban Climate Talks to Aim for Pragmatic Results” by Leon Marshall, Environmental Journalist on News Watch South Africa

The annual UN meeting to discuss climate change is happening in Durban, South Africa next week. Emerging markets are having more say in international agreements. Climate change will drastically affect and possibly reverse positive developments in emerging markets, unless we take action now. For example, the African Enterprise Challenge Fund supports technologies for adapting to climate change.

If you’re in Boston, don’t forget to sign up for our event #CleanTechThatMaters on December 14! Find out more here.

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Weekly Review November 13 – 19

2011-11-18T09:08:00.001-05:00

For Global Entrepreneurship Week, we’re following the discussion in various media outlets around the flow of capital to early stage startups. Most agree that entrepreneurship is a necessary tool for development and we’re happy to see that capital is beginning to flow to places where it's needed.

“Tanzania: Grants to Private Sector on Low Cost Energy Open” on All Africa

The Africa Enterprise Challenge Fund is continuing to promote the flow of private investment to clean tech entrepreneurs in Tanzania. To earn funding, businesses must offer an affordable product that is accessible in rural areas or an innovative solution to climate change to help small-hold farmers. Solutions must be financially viable, beneficial to the user, and conducive to the adoption of clean tech. EGG-energy recently won an AECF grant. Applications for this round close December 15, 2011.

“Global Entrepreneurship Week: A Smarter World by Startups” by Jonathan Ortmans on The Huffington Post

This week’s celebration of entrepreneurship across 123 countries is a reminder of the many emerging markets that are welcoming and enabling startups. Some emerging markets have Ease of Doing Business Indices competitive with the likes of Switzerland and Singapore. This doesn’t come as a surprise, Ortmans says, and iterates: “New firms are indeed the greatest source of new wealth for struggling economies and a powerful weapon against poverty.”

“Sean Parker: ‘Little Startups Are Ridiculously Over-Funded” by Erick Schonfeld on Tech Crunch

This week’s discussion surrounds the flow of investment capital into startups around the world. Sean Parker, somewhat controversially, thinks that the number of investors outweigh the number of fundable startups. He says that this leads to a diffusion of talent and VCs scrambling to get deal flow. Parker may think that “talented engineers and product designers … starting their own companies” lacks “impact,” but we think that entrepreneurs developing innovative technologies in mobile tech and energy open many more opportunities for impact.

“Accel Raises $155 Million for India Fund” by Evelyn M. Rusli on The New York Times DealBook

Facebook and Groupon backer, Accel Partners, raised a $155 million dollar fund called Accel India III. While Accel Partners isn’t the typical investor you’d find seeking to invest in impact at Sankalp, Accel India III will fund high-growth technology companies in India, include mobile technology. Investments will be early stage between $500,000 and $1 million.

“A Silicon Valley Dream Grows in Guatlemala, Despite the Risks” by Damien Cave on The New York Times

Recreating Silicon Valley and technology incubators to promote social impact - it’s happening in Guatemala, a huge achievement for a country known for its wide income gaps. Campus Tecnológico is an innovative new space that is promoting development on a large scale by housing startups dedicated to technology as a catalyst for change. Locally, the entrepreneurs at Campus Tecnológico are making the once run-down neighborhood attractive by filling apartments and simply buying lunch. Check out the article to learn more about the companies and their impact.

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Can Lagging Ethiopia Reach African Mobile Penetration Standards?

2011-11-17T09:00:00.003-05:00

Source

Adding 55M

Ethiopia is infamously lagging behind the African standard of mobile penetration rates. Currently, mobile penetration in Africa is around 50% and climbing, but Ethiopia’s mobile penetration is around 12%. The Government of Ethiopia, who controls the telecommunications industry in the country, has set some ambitious goals for the next five years to increase mobile penetration rates. While there are many benefits that come along with a mobile phone in the hands of the poor, here at ID, we’re wondering if Ethiopia can achieve their lofty goals. We looked at a few factors to find out if lagging Ethiopia can reach African mobile penetration standards, and it looks like it is possible.

Goals

The Ministry of Finance and Economic Development detailed its five-year strategic goals in Ethiopia’s Growth and Transformational Plan (GTP). To achieve the goal of 75% penetration by 2015, 65 million Ethiopians must have mobile phone subscriptions. It is important to note, however, that Ethio Telecom, the state-led telecom, wants to reach 65 million subscribers while maintaining a government monopoly over the industry.

Considerations in Ethiopia’s Favor

Many political and circumstantial indicators point to Ethiopia’s ability to reach 65 million mobile phone subscribers. Research by the Economist Intelligence Unit indicates that the underlying political climate is stable and should prove accommodating to telecommunications expansion (2008). Additionally, the US will continue to invest in Ethiopia to enjoy strategic advantages that come from the country’s proximity to Middle East and North Africa. China, Ethiopia’s dominant foreign investor, also has strategic benefits to gain from investing in the country to promote its global image. Relatively conservative predictions of 7.5% real GDP growth imply more than enough government revenue to afford the necessary capital expenditure (Lake & Walker, 2011).

Cost of Development

In order to determine if the government’s goal is feasible from a financial standpoint, we must understand if planned government expenditure can meet the cost of development. We estimated the cost of development by multiplying Ethiopia’s goal number of new subscribers (55 million) by the average capital expenditure necessary per subscriber in Africa. Public data from five operators (MTN, Vodacom, Orascom, Zain, and Vodafone) covering 16 African countries and over USD$5 billion in capital expenditure suggests an average cost per new subscriber of USD$32 per person (rounded towards the worst-case scenario). Based on that data, going from 10 million to 65 million subscribers in five years will require USD$1.76 billion in capital expenditure over the same period.

Government Expenditure

Assessing the government’s ability to pay for this infrastructure requires as estimation of expected values for GDP, tax rates, percent of government spending on capital expenditure, and percent of infrastructure spending on telecommunications.

Spending Capacity

5 Year GDP x Tax Rate x CapEx % of Budget x Telecom % of CapEx

Five-Year Estimates

Total GDP: Ethiopia will generate USD$180 billion in GDP over the next five years (World Bank, 2011; Lake & Walker, 2011)
Government Revenue: Collecting 15% of total GDP yields USD$27 billion in taxes (African Economic Outlook, 2011)
Capital Expenditure: Spending two-thirds of revenue gives USD$18 billion for development (African Economic Outlook, 2011)
Telecommunications: Allocating 10% of infrastructure spending to telecommunications leads to USD$1.8 billion in expected expenditure over the next five years (Foster & Morella, 2010).

An Attainable Goal?

Based on our analysis, reaching the additional 55 million subscribers will cost USD$1.76 billion while telecommunications expenditures should reach USD$1.8 billion. Though the numbers are a bit rough, Ethiopia could theoretically have enough money to reach its goal.

Speculation that the government’s state-led development model hinders potential mobile penetration growth is justified. Nonetheless, the country reached their interim goal of 10 million subscribers in July of 2011 (Ethio Telecom, 2011) thanks to a $500 million loan from the Chinese government. Our analysis did not consider external funding but even with our conservative estimations indicate that the Ethiopian government could achieve its ambitious goal.

High penetration rates in Ethiopia will open many new opportunities for mobile transaction technologies to fight poverty, but it’s just the first step. State-run entities are often capable of building larger scale infrastructure but lag desperately behind the free market. The government can provide the infrastructure, but will need the private sector’s participation for value-added services like mobile money and information exchange. Will the government allow the private sector to participate? Time will tell.

Works Cited:

African Economic Outlook. (2011). Ethiopia Report. Issy les Moulineaux, France: OECD Development Centre. Retrived from http://www.africaneconomicoutlook.org/.

Economist Intelligence Unit. (2008). Country Profile: Ethiopia. Kent: Patersons Dartford.

Foster, V., & Morella, E. (2010). Ethiopia’s Infrastructure: A Continental Perspective. Washington, DC: The World Bank.

Lake, J., & Walker, P. (September 2011). Country Report: Ethiopia. London: Economist Intelligence Unit.

The World Bank Group. (2011, October 10). World Bank Data. Retrieved from http://data.worldbank.org/

Yamamoto, D. (2007). Ethiopia: Telecommunications Sector Update. Addis Ababa, Ethiopia: Embassy of the United States.

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2011-11-16T11:27:00.004-05:00

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Poverty-Fighting Mobile Transaction Systems (Part 3): Information Exchange

2011-11-15T10:02:00.001-05:00

This is the third installment in our series on mobile transaction systems and their contribution to the fight against poverty. First, we introduced this series with an overview of mobile penetration rates and the mobile phone’s power for impact. Then, last week, we highlighted the first transaction system - mobile money - and the benefits such transactions offer to users. This week, we will look at the different ways mobile phones facilitate exchanges of information and how they benefit the users.

Information Exchange

Mobile phones can provide information to the otherwise isolated citizens at the base of the pyramid. When mobile phones facilitate the exchange of information, this has perhaps the most wide-ranging impact on its users.

For Farmers

Source: http://www.grameenfoundation.org/

The ability to access information about weather and prices leads to make or break decisions for farmers. To facilitate quality access, organizations like the Grameen Foundation have developed schemes that allow poor farmers in Uganda to gain access to valuable market data. This empowers the farmers by granting them access to information about market prices, weather reports, and planting advice. Without the data and information, farmers can suffer costly losses that would be preventable with timely knowledge. A designated “community knowledge worker” (CKW) identified by Grameen collects information from farmers and uploads it to the database for other CKWs. This sort of data collection and information sharing is hugely empowering, but it’s impossible without access to a mobile phone. Other examples of organizations seeking to fill this gap are mFarm, iCow, and Esoko.

For Job Seekers

Source: http://www.assuredlabor.com/

There are transaction systems that have revolutionized the job and talent searches in the developing world. As more corporations are moving into emerging markets, they need to source and hire talent. Mobile transaction platforms like Assured Labor (branded as Empleo Listo, think of Monster on SMS), allow companies to access potential employees on existing channels – mobile phones. On the other side, users can search for job openings on their phones. This enables users to find local jobs and avoid emigration where possible. This platform is especially advantageous for those who do not have access to traditional Internet on a PC, where most jobs are posted.

The mobile phone creates opportunities in markets that are beyond the reach of a traditional laptop. You’ll find farmers and job seekers in all populations, but continued innovation in mobile technology can further extend the benefits of information exchange on a mobile phone.

Check back next week for examples of networking, participation, and social capital exchanges made possible on mobile phones.

Weekly Review November 6-12

2011-11-11T11:33:00.001-05:00

A cornerstone of our philosophy is to combine the efficiency of the free market with the heart of the social sector. Private investment and entrepreneurship will create sustainable development in emerging markets.

“Social Venture Catalyst Ennovent invests in Barefoot Power” on YourStory.in

Ennovent’s Sustainable Enterprise Fund announced yesterday that it invested in Barefoot Power. Barefoot provides renewable energy and lighting to off-grid or under electrified communities in India. Co-investors include Insitor, Oikocredit, and The Grace Foundation. There is still a large need for greater investment activity in India to electrify the country and eliminate energy poverty.

“Investment manager speaks about venture capital in East Africa” Interview with InReturn Capital’s Eelco Benink by Regina Ekiru on How We Made It In Africa

Benink, an investment manager at InReturn Capital, discusses the firm’s investment criteria and portfolio, and the interest VC firms are showing in Africa. Africa is attractive to both impact investors and traditional venture capitalists because of its demonstrated and expected growth. The population is young, political environments are stabilizing, and there is a growing middle class and an abundance of natural resources.

“Venture Capital Office Hours with Sean Smith” by Patrick Munyi on iHub Blog

Now that Invested Development is growing and expanding globally, our team member Sean Smith is getting settled in Nairobi, Kenya. He’s now holding open office hours at iHub Nairobi every other Friday. Entrepreneurs, innovators, or those interested in venture capital are welcome to come by and chat.

Global Entrepreneurship Week 2011

November 14^th marks the beginning of Global Entrepreneurship Week. A project supported by the Kauffman Foundation. Local activities in participating countries include competitions, conferences, and networking events. This is an exciting opportunity to drive venture capital into emerging markets and to encourage entrepreneurship.

“Libyans Need Economic Freedom” by Jay Hallen on The American

Libya is at a crossroads. Similar to Egypt, there are high numbers of unemployed youth. The article recommends that the National Transitional Council use oil revenues to create venture capital funds for college graduates. A startup community would not only develop the country’s economy, but do so in an all inclusive way.

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Weekly Review October 30 – November 5

2011-11-04T08:34:00.000-04:00

This week, we’re stepping back and looking at the explosive developments in the ICT industry and their effects in emerging markets. In case you missed it, check out our ongoing series on how mobile transactions systems can fight poverty, Part 1 and Part 2.

Image Courtesy of SlimTrader

“Ethio Telecom launches credit transfer service” Press Release from Ethio Telecom

Ethiopia is infamous for its lagging mobile penetration rates. The Government-led telecom released ambitious goals for mobile penetration last year. So far, it seems that the country is on target to meet them. Last week, Ethio Telecom announced that it would now allow prepaid users to transfer airtime to one another, an early version of mobile money. Airtime is like a currency in emerging markets, and we’re excited to see this type of development continue in Ethiopia.

“M-Pesa transactions surpass Western Union moves across the globe” on Daily Nation Kenya

With over 14 million customers signed up since its March 2007 launch, Safaricom’s M-Pesa is processing more transactions in Kenya than Western Union is in the entire world. M-Pesa provides mobile money services to more than 70 percent of Kenya’s adult population, according to the International Monetary Fund. M-Pesa has revolutionized the way Kenyans transfer their money, moving about 17% of the country’s GDP each year.

“84 million mobile devices are Internet enabled” on IT News Africa

In Zimbabwe, mobile phone penetration has begun to significantly contribute to levels of entrepreneurship in the country. A report from the United Nations Conference on Trade and Development revealed,“59% of Zimbabweans have access to mobile phones compared with only about 5% in 2005.” The UNCTAD pointed out that Zimbabwean SMEs are using mobile phones regularly to conduct business and m-commerce. The Government of Zimbabwe indicated that m-commerce has been a significant economic driver. In addition to mobile penetration, phones with mobile Internet are always increasing; in Arica, “7 out of 10 are expected to be Internet-enabled by 2014.”

“UN Team Approves ICT Goals As EA’s Speed Lags” by Esmond Shahonya on All Africa

The UN’s Broadband Commission for Digital Development has endorsed new targets that aim to provide global broadband access. The first target requires all countries to have national strategies for implementing universal broadband access. Furthermore, broadband access must be affordable. The final target aims to provide broadband access to 40% of households in developing countries by 2015. The goals were developed at the International Telecommunication Union (ITU) Telecom World 2011 summit, which considers “broadband as a vital ingredient for development.”

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Poverty-Fighting Mobile Transaction Systems (Part 2): Mobile Money Transactions

2011-11-03T14:08:00.000-04:00

Last week we introduced this series that will highlight the different ways mobile phones can combat poverty. This week, we will discuss the first example of a poverty-fighting mobile transaction system. Mobile money transfer services provide financial inclusion benefits for the unbanked, and are the most heralded impact of mobile penetration.

Mobile Money Transactions

Perhaps the most well-known mobile transaction systems that engage the base of the pyramid are mobile money transactions. The various flavors of mobile money transactions (mobile payments, m-wallets, mobile banking, etc.) have revolutionized the way users send and receive money throughout emerging markets, bringing millions of previously unbanked users closer to full financial inclusion.

Safaricom’s M-PESA, the golden beacon of the mobile money industry, set a standard in Kenya that others are trying to follow. The telecommunications company released its mobile money service in March 2007 and currently has 14 million users in Kenya alone. Today, nearly 17% of Kenya’s GDP flows through M-PESA, even though many of these users do not have bank accounts. The resounding success of M-PESA has sent a message across the globe. There is tremendous demand from the unbanked for financial efficiency and cashless transactions.

Inspired by the success of M-PESA, others are quickly joining the movement. Competing telecommunications companies from Manila to Mexico have created similar models and even banks are deploying mobile payments with branchless banking models to serve the rural poor. Whatever the approach, mobile money transactions give the unbanked the opportunity for financial inclusion, including secure, cashless financial transactions. In most cases, users can transfer money, and pay bills with a simple and secure text message, or deposit/withdraw cash at any participating agent.

There are also less obvious benefits that come from the growth of mobile money transactions. Agents, who are usually small shopkeepers, enjoy increased revenue streams and increased customer presence in their stores. Because the money is “e-float” and not cash, the risk of funds being lost or stolen decreases significantly as well.

Image Courtesy of Simpa Networks

However, for real financial inclusion, mobile transaction systems are going to have to expand their services beyond simple cashless transactions. Some of this is happening already. For example, Safaricom recently partnered with Equity Bank to develop M-KESHO in Kenya, a product that provides M-PESA users with interest bearing mobile savings accounts. Another example comes from Simpa Networks, an ID portfolio company that leverages mobile technology to finance the costs of solar home systems. The Simpa Regulator allows users to make payments with their mobile phone to pay off the cost of the system over time. In this way, mobile transactions can expand one of the most important aspects of financial inclusion, credit.

Check back next week for examples of information exchanges made possible with mobile phones.

Weekly Review October 23-29

2011-10-28T09:35:00.001-04:00

Several exciting headlines this week point to the adoption of clean tech as a affordable and scalable solution to the world’s energy problems.

“New Technology Could Double Solar Cell Efficiency” by RP Siegel on Triple Pundit

Although installed costs of solar photovoltaics have declined by over 43 percent since 1998, many who rely on fossil fuels are still reluctant to make the change to solar. Now, through advancement in the research and development of using so called “quantum dots”, several scientists at UT Austin have demonstrated how to increase solar panel efficiency from 31 percent to 66 percent, harnessing the previously illusive “hot energy” from the sun’s rays. These advanced developments and efficiency increases will likely drive down the costs, making solar energy more affordable for all.

“World Bank opens up $60m climate finance scheme to developing nations” on Business Green

A newly developed $60m fund by the International Finance Corporation will promote innovation in clean technology for emerging markets. Individual investments are expected to be in the range of $3 and $4 million. The fund will also support startups’ endeavors to reduce greenhouse gas emissions.

“Developing world ups ante in cleantech ‘arms race’” by Fiona Havey on The Guardian

Not surprisingly, the developing countries of the world are investing more and installing more clean technology than their counterparts in the developed countries. Specifically, China added 19GW of wind generating capacity, while India met targets of about 10GW. The Global Wind Energy Council wrote in its annual report that the demonstrated growth in wind capacity “puts an end to the assertion that wind power is a premium technology only for rich countries which cannot be deployed at scale in other markets.”

“Massachusetts Celebrates Green Technology with 2011 Clean Energy Week”

The Seventh Annual Conference on Clean Energy is happening in Boston on November 1. The Massachusetts Technology Transfer Center and The Massachusetts Hydrogen Coalition host the event as part of Massachusetts Clean Energy Week. Our own Miguel Granier is a panelist on “Energy Solutions for Developing Countries,” alongside Sam White, Co-Founder of our portfolio company, Promethean Power. Check out the agenda for all the details, including pitch sessions and lots of exciting panels.

“Selling Home Solar Like a Cell Phone Plan” by Brian Merchant on TreeHugger

It’s no secret that the two biggest obstacles to scaling clean technologies are cost and access. TreeHugger points out that it’s important to invest in renewable energy sources but also to experiment with pricing models that will allow people at all income levels to afford and access sustainable energy. Our portfolio company, Simpa Networks, tries to combat the financial barrier by allowing users to pay for energy just as they would with a mobile phone. Watch Brian Merchant’s interview with Paul Needham, Simpa Networks founder and a new PopTech Social Innovation Fellow.

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An ID Update

2011-10-25T14:18:00.000-04:00

After a busy summer that included the official launch of our BETA initiative, we aren’t ready to slow down. This fall we continued our growth by opening our first in-country field office and welcomed a new team member.

Sean Smith, our Investment Analyst, has moved to Nairobi, Kenya, to open the first Invested Development outside of Boston. Sean will continue to source pipeline from around the world, but will add even deeper insight into the needs of the underserved on the Continent and the creative start-ups addressing them. If you’re in Greater Nairobi and would like to meet up with Sean, please reach out to us on Twitter. Watch out for a post in the coming weeks from Sean on this blog as he gets settled and learns more about the innovation that’s stirring in Nairobi.

Back here in Boston, we’re very pleased to announce the addition of Alex Bashian to the Invested Development team. Alex joins us as the Senior Investment Analyst after several years of experience in finance and clean technology. He is a graduate of Columbia University’s esteemed MPA program in International Energy and Economic Policy, a recovering Wall Street analyst, and an experienced alternative energy consultant and advisor. We couldn’t be more excited about having him on board.

In addition to our growing team and global presence, we have some great things planned for the upcoming quarter. Make sure to keep up with us on Twitter and subscribe to our blog to stay updated with all the latest news. Thanks for your continued support of Invested Development.

Poverty-Fighting Mobile Transaction Systems (Part 1): Leveraging Mobile Ubiquity at the BoP

2011-10-24T15:51:00.008-04:00

The ID team spends a lot of time discussing and studying the mobile technology industry. The driving force behind our focus on mobile technology in emerging markets has been the explosive growth of mobile phone penetration rates and the potential for mobile transaction systems to reduce poverty.

Our most popular post on this blog is “Mobile Phones at the Base of the Pyramid: Accessibility and Affordability” published in June 2010. In that post, we outlined why mobile phones matter, citing examples of connectivity and mobile access increasing income at the bottom of the pyramid. Since then, we’ve narrowed down our focus even more. Every day we learn about new mobile transaction systems and applications that change the way people at the base of the pyramid live and work.

Over the past few years we have learned that the key to mobile transaction systems is the exchange. As Dr. Harish Hande, founder of SELCO-India and the winner of the 2011 Ramon Magsaysay Award said in his keynote speech at ForSe2011, the poor must be “asset creators”. It’s not just about selling to the BoP, it’s about letting them sell to us as well. This means that when we drive products, information, thoughts, and opinions to the BoP, we should allow the flow to be reciprocated. Everything that flows “down” must flow back “up” for a sustainable cycle. This includes money, information, and social capital.

In that 2010 post, we also looked at the demonstrated market growth for mobile phones. We consistently monitor the penetration rates of mobile phones in emerging markets. The World Bank Database is a reliable resource, currently offering data through 2009. Based on that data, we projected the penetration rates for 2010 and 2011(using a conservative diminishing returns formula for the falling year-on-year growth averages). The chart below shows the number of mobile phone subscribers per 100 people in Latin America & the Caribbean, India, and Sub-Saharan Africa. We compared these three emerging market regions with the United States, the European Union, and the world as a whole.

Mobile Subscriptions per 100 Inhabitants

Even at slowing growth rates and our conservative estimates, we can see that access to mobile technology in the developing world has increased tremendously over the past decade. Now, social entrepreneurs are leveraging these high penetration rates to create businesses and wealth that enable sustainable development. Muhammad Yunus, Nobel Peace Prize winner and founder of Grameen Bank, famously said: ”When you get a mobile phone it is almost like having a card to get out of poverty in a couple of years.” There are a variety of tools, applications, and services that mobile technology provides to empower the BoP and, here at ID, we strive to understand each of them.

Over the next few weeks, we will post the different examples of mobile transaction systems and the ways they empower the world’s poorest citizens by creating exchanges. Up first on the agenda is Mobile Money Transactions, check back next week for the first examples.

Update:
Part 2 - Mobile Money
Part 3 - Information
Part 4 - Social Capital

Weekly Review October 17-21

2011-10-21T12:46:00.002-04:00

Source: Wikimedia Commons

This week we’re highlighting the importance of enterprise level development and impact investing in India. Several newsworthy excerpts describe the myriad opportunities emerging from the growth of social enterprises, impact investing, and the use of technology in the region.

“Could impact investing help India’s poor” by Shilpa Kannan on BBC News, Delhi

A massive existing population in India coupled with robust economic growth expectations and a changing investor appetite for disruptive innovation in emerging markets has driven growth in social enterprises opportunities. Impact investors are seeking cutting edge local entrepreneurs and business innovators in India for the development of the region. In late 2010, JP Morgan was one of the first to formally acknowledge that this sector is more than an emerging trend but rather a unique and emerging asset class all its own, a notion that supports the Times of India Social Impact Awards. As the article reports, it is becoming increasing clear that the potential and support for impact investing in India is huge. This investment class is both a solution for the risk-averse private sector and compliments the already exhausted resources coming from many governments and donors.

“Cheap tablet computer leads India’s drive to tackle rural poverty” by Charles Arthur on The Guardian

The Indian government is buying £30 tablets, the “Aakash,” from a British manufacturer, DataWind. The government will use the tablets to supply rural schools and universities with modern technology “to help lift villagers out of poverty.” This is an effort to get 220 million children of India online and close the gap between the burgeoning rich and the underserved poor. Currently, “only 7% of Indians graduate from high school” and the government aims to increase enrollment to 30% by 2020. DataWind tablets enable teachers to access important teaching resources and give students a taste of technology.

“How billions without electricity will benefit from clean energy” by Charles Kenny on Grist

“Just as many [governments] in developing countries skipped landlines and went straight to mobile phones,” many developing countries will also skip coal and go straight to clean energy. Clean technology and alternative energy sources are the competitive choice for under electrified countries in emerging markets. Especially in India, where the population is so large, the benefits of clean and safe energy sources will be significant. For example, there are about 2.5 million burn cases in India alone each year due to the use of kerosene lamps. Also in India, solar panels are priced around $300, the equivalent of a year’s supply of kerosene. Strengthened with innovative financing solutions like the Simpa Regulator Simpa Networks, India may reach its goal to produce 15% of its total energy from renewable sources by 2020. With the support of the public sector and the private sector, the second most populous country in the world can electrify the country with sustainable solutions.

“Aavishkaar raises $62 Million in Series D Funding” on Silicon India

Aavishkaar, a Mumbai-based venture capital firm, has raised a new $62 million fund that will focus on early-stage firms serving the base of the pyramid in India. In a similar fashion to Invested Development, Aavishkaar India emphasizes the importance of solutions that are affordable and scalable. The fund will serve a wide range of industries in India, including: healthcare, water and sanitation, education, agriculture, and renewable energy. VineetRai founded Aavishkaar in 2001 with the vision of enabling and harnessing the entrepreneurial spirit found at the base of the pyramid to promote sustainable and self-sufficient economic development.

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EGG-Energy Development Innoventures Salon

2011-10-17T12:55:00.001-04:00

A few months ago, we highlighted EGG-energy's innovative pricing and distribution strategy for the Base of the Pyramid. If you like EGG-energy's business model or discussing BoP strategies in general, then we recommend attending EGG-energy's upcoming brainstorm session in Cambridge, MA, hosted by the Development Innoventures Salon. The session will open the conversation around three main topics:

Pricing Strategy
Marketing and Sales Strategy
Growth and Distribution Strategy

It's important for EGG-energy to grow sustainably and scale its model in order to create maximum impact in the vastly unelectrified Tanzania. Less than 10% of the Tanzanian population has access to reliable energy. EGG-energy's business has the capacity to change that with a "portable grid." The key is being able to offer scalable and affordable solutions with a low upfront cost.

If you're interested in the for-profit social enterprise space, the BoP, innovation for development, and a "Netflix for batteries" business model, then please attend the brainstorm session on Thursday, October 20th at 6:30 pm. Details are registration information are available here.

About Development Innoventures Salon:

"DEVELOPMENT INNOVENTURES SALON is a new forum bringing together Boston's Innovation-for-Development community. We brainstorm with emerging impact entrepreneurs attempting novel market- or technology-based solutions to intractable problems in the developing world. Salon participants problem-solve around key challenges these innovators face in launching and scaling their enterprises. The SALON aims to convene a multidisciplinary group of entrepreneurs, visionaries, business professionals, development professionals, investors, practitioners, technologists, academics, students, and polymaths."

Weekly Review October 10-14

2011-10-14T09:21:00.001-04:00

A cornerstone of Invested Development’s strategy is that mobile phones facilitate information, participation, and transactions in emerging markets. This week’s articles demonstrate examples of how mobile phones can do so.

“Mobiles: The Hub of a Global Information Society” by Melissa Ulbricht on Mobile Active

Like us, Mobile Active is a proponent of the basic feature phone’s potential for impact by distributing information. A new report, “News on the Go: How Mobile Device Are Changing the World’s Information Ecosystem” by the Center for International Media Assistance (CIMA) discusses and examines how the implications that mobile penetration has for politics, education, economies, society, and most importantly, the global disbursement of news and information. The report focuses on smartphones, but Mobile Active smartly lists a collection of case studies focused on more basic phones. Both smartphones and more basic phones create opportunities as Mobile Active and CMIA demonstrate in their publications. Check out the Mobile Media Toolkit for case studies focused on basic phones and download the CIMA report to get a sense of the impact, no matter what kind of phone.

“Reach the Next Billion Through Mobile” by Grant Tudor on Next Billion

Nathan Eagle, a local MIT professor and co-founder and CEO of Jana, was profiled in The Economist in January and more recently in Next Billion as a “radical innovator capitalizing on the rapid and broad-based distribution of mobile technology.” Jana, formerly Txteagle, is a mobile-phone-based platform that allows global organizations to reach and engage consumers in emerging markets. Jana has Research and Marketing arms across 80 developing countries, allowing consumers to actively participate and leverage their own influence over the market. Jana allows businesses to collect data on the wants and needs of their target markets at the BoP by distributing surveys on mobile phones and offering a promotional incentive for doing so. In the case of Jana, mobile phones change the way we look at and do business with BoP markets.

“The African Laptop Killer: Android and the Developing World” Claire Hunsaker’s presentation at Android Open 2011

Claire Hunsaker, Director of Marketing and Client Services at Samasource!, presented at the Android Open 2011 on mobile ubiquity’s impact in Kenya. Claire discusses how the ubiquitous presence of mobile phones contributes to the lifestyle of everyday Kenyans. Notably, cheap Android phones called “Kenya phones” are slowly rising in popularity in the market. Most importantly, she points out that 99% of new-paying Internet users access the web on their mobile phones. Hunsaker and Samasource!’s work focuses on the use of mobile phones for information, payments, and networking. This is a philosophy we share at ID. For example, the Mobile Media Toolkit and the Open Data Kit, accessible on a mobile phone, promote citizen journalism. For more examples on how information distribution is made possible through mobile phones in addition to payment and networking opportunities, watch her whole presentation and follow Samasource! on Twitter.

“A powerful combination: Radio and SMS promote open dialogue in Chad and Niger” by Prairie Summer and Lucy Lyon posted by Ken Banks of National Geographic Emerging Explorer on National Geographic News Watch

Prairie Summer and Lucy Lyon of Equal Access International (EA) leverage the technology developed by FrontlineSMS to educate and empower the BoP through media and community mobilization. That is to say, with mobile technology, they facilitate participation and information transactions. FrontlineSMS is a valuable tool for NGOs that allows group texting and two-way communication on a large scale. EA hosts six radio programs in Chad and Niger and communicates with its listeners using the FrontlineSMS technology. This allows the listeners to participate, share their views, and get their questions answered using a tool that is readily available. Check out the article to read first-hand accounts of user participation.

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WANTED: The World’s Most Unreasonable Entrepreneurs

2011-10-12T13:04:00.002-04:00

Convinced you have the entrepreneurial mettle to improve the lives of millions of people around the world? Accelerate your venture with mentorship from 50 seasoned entrepreneurs and practitioners, ranging from a Time Magazine Hero of the Planet, to the CTO of HP, to an entrepreneur who’s lifted over 19 million farmers out of poverty. In the process, form relationships with 20 impact funds including Invested Development and our friends Acumen Fund, Good Capital, and First Light Ventures and pitch to hundreds of prospective partners and funders. Do it all while living under the same roof in Boulder, Colorado for 6 weeks with 25 entrepreneurs dedicated to defining progress in our time! Apply by November 10, 2011 to attend the 2012 Unreasonable Institute!

Watch the Unreasonable Trailer to see what its all about!
See an overview of the 2012 Unreasonable Institute!
ID Founder, Miguel Granier, participated as an Unreasonable Mentor and a Capital Partner in 2009 and 2010. View his Unreasonable profile here.
Download the press release here.

Weekly Review October 3-7

2011-10-07T12:00:00.001-04:00

Last week we spoke to the impact that mobile technology can have for development. For the same reasons, our other investment focus is alternative energy. While alternative energy is traditionally expensive, many social entrepreneurs are creating clever financing models that deliver clean energy at an affordable price. The following articles detail why and how alternative energy can create such a significant impact at the BoP in emerging markets.

Source: Simpa Networks

“Could a Pay-as-You-Go Model Convince People to Go Solar?” by Sarah Laskow on GOOD Magazine

GOOD Magazine spotlights Paul Needham, co-founder of Simpa Networks, our portfolio company, and a member of the Class of 2011 PopTech Social Innovation Fellows. Paul understands that solar energy incurs an upfront cost that is too high for most users. So he and the team Simpa created the Simpa Regulator, which allows users to pay for the cost of a solar home system over time. Simpa smartly pegs its prices to be the same as kerosene, which most people at the BoP use for energy. This way, the Simpa Regulator not only delivers energy affordably, but it also delivers clean energy that isn’t damaging to personal health or the environment. Even better, Simpa’s light from SELCO-India’s solar panels is brighter than a kerosene lamp. Consumers get a safer and longer-lasting energy source for the same up-front price and ultimately spend less money over time.

“Pay-As-You-Go Makes Solar Accessible in Emerging Markets” by Sami Grover on TreeHugger

Simpa is not the only company offering pay-as-you-go models. A company called Eight19 creates solar film – or printable solar panels. In partnership with Solar Aid, the pair has developed IndiGo, a charging technology that is specifically designed to be affordable for the BoP. Users can add credit to their IndiGo box by using the codes sent to their mobile phones after purchase. Like Simpa’s Regulator, this model allows users to pay for their energy over time without the initial upfront cost.

“Impact Investing in Energy Enterprises: A Three-Act Play” by Christine Eibs Singer, Executive Summary on the E+Co Blog

Christine Eibs Singer, the co-founder and CEO of E+Co, recently published a case study for the MIT Innovations Journal’s latest edition - SOCAP11: Impact Investing Special Edition. An executive summary is available on the E+Co blog. In the Case Study, Singer looks at the different stages that E+Co has gone through, and how the organization got to where it is now. E+CO started before “impact investing” was a buzz word. Despite the merge of impact-focused funding vehicles, the goal has always been to help energy enterprises grow and prove their worth, and ultimately create impact for the BoP. The full journal is available on Amazon and contains articles from many other industry experts including Kevin Doyle Jones, Phillip Auerswald, Antony Bugg-Levine, Mario Morino, and Ross Baird.

“Nepal on track to achieve MDGs: PM” on The Himalayan Times

The UN’s Millennium Development Goals seek to halve poverty by 2015. The Prime Minister of Nepal, Dr. Baburam Bhattari, noted that his country’s achievement of the MDGs is largely hindered by energy poverty, and in a broader sense, a lack of technology and innovation. Energy poverty occurs when there is limited or no access to electricity for cooking, heating, cooling, and/or lighting. Many people at the BoP in Nepal use unsustainable and harmful energy sources like kerosene. The Prime Minister addressed the “Sustainable Energy for All: Water, Food, and Energy Security” session at a UN Roundtable, where he suggested that the Nepalese government is accelerating efforts to scale sustainable energy solutions to fight against poverty.

“Can Microgrids Eliminate Energy Poverty?” by Christine Hertzog on The Energy Collective

A staggering 2.4 billion people in the world live in energy poverty - a way of life that is very unfamiliar to us in the United States. Almost a third of the world’s population lives with very limited or no access to electricity. This means that the time they can spend working or studying is limited, and it affects everything from cooking to communication to refrigeration. In other articles this week we discussed pay-as-you-go solar as a solution. Another solution to help bring energy access to the BoP is microgrids. General MicroGrids, Inc. is a company founded by Terry Mohn who is also the Co-Chair of the UN Foundation’s MicroGrid Work Group. He hopes that the company can deliver affordable and renewable energy to eliminate energy poverty and contribute to the goals outlined by the UN Campaign of Sustainable Energy For All. The three main goals that the UN is promoting to achieve by 2030 are: “1) Achieve universal access to modern energy serves; 2) improve global energy intensity by 40 percent; and 3) Produce at least 30 percent of the world’s energy from renewable sources.” Microgrids , according to Mohn, are a technological answer and solution that can meet the UN’s goals for energy.

Good News in the Portfolio

2011-10-03T08:43:00.000-04:00

As we wrote about in a recent post, Cents and Responsibility, investors have a responsibility to entrepreneurs. The Weekly Review prior to that post highlighted the close relationship an entrepreneur must have with the investor to enable productivity and progress. We live by our own words. We have a close relationship with each of our portfolio companies and stand by them on both the highest of highs and lowest of lows. Although we don’t want our entrepreneurs to become self-licking ice cream cones, we can’t help but be excited for them when they are rewarded for their hard work. This week we’ve heard some great news all around and we’d like to share it with you.

Frogtek’s Tiendatek platform for micro entrepreneurs in Latin America won €150,000 (US$206,000) in Vodafone’s Mobile Clicks Competition 2011. Vodafone Mobile Clicks is an international contest for mobile start-ups. Frogtek made it through three rounds of judging based on the criteria of 1) originality, creativity, innovativeness, 2) technical and operational feasibility, 3) economic and financial viability, 4) value to end-users and 5) the quality of the management team. Frogtek’s target market is bottom-of-the-pyramid shopkeepers in Latin America; Tiendatek provides the shopkeepers with a valuable resource to enable them to manage inventory and sells and make smarter purchasing decisions. Venture Beat on the New York Times highlights Frogtek’s software and its prize here. The following video is an interview with Frogtek’s CTO, Guillermo Caudevilla.

Paul Needham, co-founder and president of Simpa Networks, has been named a member of the Class of 2011 Pop!Tech Social Innovation Fellows. This is an esteemed honor for Paul who has worked hard to create impact in India with the development of the Simpa Regulator, which makes solar home systems “radically affordable” for those living in energy poverty. The PopTech Social Innovation Fellows Program will give Paul and the other fellows the opportunity to connect and take advantage of “tools, insights, and [a] social network that can help them scale their impacts to new heights.”

Weekly Review September 26-30

2011-09-30T08:49:00.002-04:00

People often ask us why we chose technology as our investment focus. The answer is quite simple: technology has the greatest potential to create impact in the developing world. The following articles for this week share our sentiment and speak to mobile technology’s power for social impact (be sure to check out next week’s Review to see how alternative energy is creating impact).

Source

“Mobile Broadband in Kenya” by Patrick Munyi on iHub Blog

Kenya has been the shining star of mobile technology innovation in Africa, largely fueled by high mobile penetration and the installation of undersea fiber cables in 2009. The folks at iHub Nairobi have collected data regarding mobile technology and mobile broadband usage in Kenya. They have found that broadband speeds are increasing alongside the number of users and that most access the Internet with their phone; “98% of mobile subscribers use mobile internet.” More important are the affects mobile Internet will have on the Kenyan economy. iHub writes, “It is predicted that mobile broadband can potentially increase national productivity and growth by up to 15%.” Access to mobile phones, and therefore mobile broadband, will made a significant improvement in the continued development of Kenya.

“Crises in the Digital Age” by Michael Fertik, CEO and Founder of Reptuation.com, on World Economic Forum Blog

Michael Fertik reflects on the attitude world leaders had on Internet at the World Economic Forum in Davos this year. All agreed and wanted to know more about how the Internet “spreads information, misinformation, rumor, innuendo, and fact.” While the Internet can cause a stir, the information it channels to underserved populations is critical. Fertik writes of the impact the Internet has in times of crisis or disaster. We agree that technology creates impact by absorbing and transmitting information, and add that it doesn’t just have to be in times of crisis.

“2011 Most Influential Women in Technology - Katrin Verclas” by E.B. Boyd on Fast Company

Katrin Verclas, founder of MobileActive.org, has been honored as one of the most influential women in technology this year. Her site is a “hub for people around the world who are building tools for mobile phones that make a difference.” Her site unites the large community of technology innovators who are working to create technologies that empower the world’s underserved populations. This way, innovators can share their experiences and expertise to create affordable and scalable products and services for the underserved. By promoting the development of applications and mobile technologies, we can leverage mobile ubiquity to create social impact. Congratulations to Katrin Verclas and thanks for propelling the technology for impact space forward.

“HP Invests for Growth in Africa; New operations in 10 countries bring transformative technology solutions to help drive sustainable, long-term growth” Press Release from HP on Market Watch

It’s not just small social enterprises that have caught on the potential at the BoP and technology’s power for impact. The IT giant Hewlett-Packard (HP) is expanding its operations in Africa with 10 new entities throughout the continent. Business customers, governments, and individuals will have improved access to HP’s hardware and software. Governments especially will be able to leverage HP technology “to drive economic growth by modernizing the delivery of services in key areas such as education, healthcare, and e-Government services.” By penetrating the market, HP will drive increased adoption of technology and promote sustainable economic development. HP’s presence alone will create jobs and stability throughout their communities. HP also has plans for many other initiatives to collaborate with universities, innovate in African education and extend social innovation programs.

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Weekly Review September 19-23

2011-09-23T11:45:00.002-04:00

Source

Banks and mobile network operators are working in an environment that is constantly evolving with the addition of new competitors, new regulations (or lack thereof), and new markets. The mobile payments world in emerging markets is experiencing explosive growth and widespread support, as evidenced in the following articles.

“First universal mobile payments platform goes live” on Mobile Money Africa
Luup is now providing universal mobile payment systems through a combination of Microsoft BizTalk Server and Temenos T24, a core banking software used around the world. Luup CEO Martin Wilson claims that the platform can serve corporate and retail users in both developed and developing markets on any mobile device on any mobile network. Successful mobile payment platforms are scalable and fall in line with regulatory and security requirements. Luup believes their service meets these criteria, “connecting senders and receivers of funds across the globe.” The integration of Temenos T24, a technology used in “over 1000 financial institutions in more than 125 countries across the world,” implies that Luup is highly adaptable and is likely to be successful globally.

“Banks have some good news… are they listening? by Kabir Kumar on CGAP
Although these are tough times for banks, a recent research project on branchless banking by CGAP, the Inter-American Development Bank, and Akya (a banking consultancy) found some good news. Branchless banking, though fiercely competitive in emerging markets between banks and MNOs, can present new and opportunistic business cases for banks. There are five key findings regarding the business case for banks in the collaborative report. First, a critical factor to success in branchless banking is a strong agent network. At low transaction volumes, in rural areas for example, an agent is the most economical option. Second, banks offer branchless banking because it is an additional and efficient channel to reach unbanked or under banked segments. This allows them to grow their market share, while increasing cash flow activity. Third, a strong agent network adds value for a branchless banking customer by offering a new level of convenience. Fourth, branchless banking promotes growth of the bank and markets, and also reaches new geographies and customers. Finally, banks practicing branchless-banking practices will find that payments can make a substantial contribution to profit. The full presentation, “Understanding the business case for banks in branchless banking” is available here.

“Liberate mobile payments for more inclusive economy” by Wesley Lynch on Mobile Money Africa
Despite the tremendous adoption of mobile money penetration in Africa, South Africa’s rate of adoption has been lagging in comparison. Wesley Lynch, CEO of Realmdigital, blames this on the regulatory environment in South Africa. The restrictive banking regulations also limit innovation from MNOs who could offer cheap and easy mobile transaction services to customers at the BoP. M-PESA’s famous success in Kenya has not been repeated in South Africa, “a country with 13 million unbanked citizens.” The major obstacle for mobile network operators to behave as banks has been government regulation. Once mobile network operators can obtain banking licenses in South Africa, the mobile payment ecosystem will open up a new, liberated economy.

“Nigeria: GSMA to Partner State on Mobile Money” by Obinna Chima on AllAfrica
The mobile payment industry in Nigeria has the support of the Global System for Mobile Communication Association (GSMA). The GSMA promises to ensure the successful adoption of mobile money in the country by working closely with the federal government and key banks and mobile network operators. Mobile payments transactions could improve trade and commerce significantly in Nigeria thanks to the high level of mobile penetration and the high number of unbanked citizens. Mr. Ross Bateson of the GSMA stated that mobile money would increase productivity and improve the Nigerian economy. Additionally, there are other opportunities beyond mobile payments that access to mobile can offer to enable development.

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Cents and Responsibility

2011-09-21T09:26:00.001-04:00

Source

Every week we speak to entrepreneurs who are eagerly seeking financing for their start-ups. Despite the start-up moniker, many have been struggling for months and even years. They have probably passed up jobs, ended significant relationships, faced the ridicule of family and friends, and lost sleep over bills and bank accounts. They are, in a word, desperate.

It’s important for investors to recognize this. Look past the calm exterior, the confident pitch face, the exaggerated success claims, and the impressive resumes. More often than not, entrepreneurs are highly intelligent, wholeheartedly passionate, and despairingly insecure people who desperately need approval. We say this with the utmost respect for the entrepreneurs. It takes a tremendous amount of courage to walk into the lion’s den, especially with a preexisting defeated and desperate mindset. Nevertheless, investors should not coddle and string along every entrepreneur that pitches to them. On the contrary, these entrepreneurs need a healthy dose of reality that an investor has the power, and responsibility, to provide. They’ll thank you for it later.

In some circles, ID has developed a reputation as being “straightforward” (to use a pleasant euphemism) and maybe even a little harsh. That wasn’t always the case. In the beginning, like many other impact investors, we were quickly enamored with entrepreneurs’ “narratives” in pitch sessions. Therefore, our hearts didn’t let our mouths utter what our minds were thinking. We let the entrepreneurs leave meetings with a glimmer of hope that we would be following up with an investment, even when we knew that we wouldn’t. However, this does no good for the worn-out entrepreneur, who could be compared to a starving artist. Over time, we have discovered that a firm “NO” coupled with actionable advice for moving forward helps an entrepreneur much more than false hope. We have learned our lesson and we hope that other investors will follow suit.

As investors, we have a responsibility to be upfront and honest (call it harsh if you like). With all due respect to the entrepreneur, investors should follow a simple set of rules to manage mutual expectations:

Know your own investment criteria: If you really don’t invest until they have trailing revenue, don’t “diligence” the kids that just won the MIT $100K. If you only invest in financial inclusion, don’t chat up solar energy start-ups (even if their founder did just speak at TEDx).
Speak your mind: If the business model fails to impress you, tell them why. If the entrepreneur fails to instill confidence, let them know. It will probably be uncomfortable, but shouldn’t be confrontational.
Limit letters of commitment: LOIs are an easy way to buy time for your investment committee to continue to deliberate, but they set expectations for entrepreneurs that are often not met. If you’re going to invest, just do it. If not, just say it.
Just say “No”: It’s not only a bastion of Reagan era drug policy, it’s also a great way to keep expectations in check. Don’t waste time if you’ve already made your decision. Offer a referral, constructive criticism, and a genuine smile, but don’t waiver, don’t defer, and don’t let the entrepreneur wedge the door back open if you really aren’t going to follow through.

Last week, our Weekly Review highlighted articles that spoke to the great sense of responsibility that rests with impact investors and social entrepreneurs. An investor’s responsibility begins with the entrepreneur. However, in addition to being responsible to entrepreneurs, impact investors must be mindful of the future impact of their investments on the environment, local communities, and individuals. It’s not an easy task and it’s one that the investor and entrepreneur tackle together. To manage their responsibilities effectively, the pair needs to have a strong relationship made possible with honesty and trust from the start. This means clearly communicating interests and expectations and that starts with intent to invest (or not).

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Weekly Review September 12-16

2011-09-16T09:48:00.003-04:00

Inevitably, Money creates power and with power comes great responsibility. Impact investors have the power to enable social enterprises to create change while developing solutions for underserved markets. Reflected in their mission statements, they also have the responsibility to work closely with social entrepreneurs to make this happen. The following articles from this week review the different responsibilities investors and entrepreneurs have and ways they fulfill them.

“Namibia: Call to Invest in SMEs” by Magreth Nunuhe on AllAfrica

Namibia’s Deputy Minister of Trade and Industry, Tjekero Tweya explains how the private sector, with the support of the government, can, “bring about material change to the living conditions of all Namibians.” Entrepreneurs with a commitment to innovation and investors who take responsibility for their entrepreneurs working in emerging markets will find that they’re actually enabling the development of the market. Tweya stated: “The successful economies of the world have not been created by fate, they have been created by deliberate efforts of perfecting the art of innovation.” By working closely together, entrepreneurs and investors seeking to create social impact in countries like Namibia can leverage resources and networks to foster innovation.

“Building Something People Need: On Raising Venture Capital and Creating Startups that Matter” by Rob Ebrahimi, Expert Blogger at Fast Company

Ebrahimi, founder of ReadyForZero , writes about what really matters for startups. Stating that many startups get caught measuring success by their ability to fundraise, Ebrahimi iterates that the real measure of success for a startup is people (customers). This caveat especially applies to social entrepreneurs who create businesses to spread impact to as many people as possible. It doesn’t matter how much funding social entrepreneurs receive, but rather the scale of the impact and the number of people positively affected. Ebrahimi writes that entrepreneurs often fall into the trap of focusing on raising venture capital rather than on their vision.. Investors, especially impact investors, have a responsibility to their entrepreneurs to focus their energies on creating startups that matter: “make something people want (and need).”

“SOCAP11: Village Capital and the Value of Peer-based Evaluation” by Pankaj Jain on NextBillion

In the wake of SOCAP, the impact investing industry has been reflecting on the different ways that people are powering capital to drive impact investments. Ross Baird, executive director of Village Capital, developed a new way of connecting social capital markets. Inspired by microfinance, Village Capital accelerates the impact investing space by connecting entrepreneurs and investors through peer support organizations. At SOCAP, Baird moderated the “People Powered Capital” panel, during which entrepreneurs shared stories about their experiences working with Village Capital. A key takeaway from the talk was the collaborative nature that social entrepreneurs and impact investors experience while working in the peer-powered networks. Within the social capital markets, entrepreneurs and investors are responsible for working together to scale up and sustain the social enterprises that create the impact. Peer-powered networks like Village Capital make this possible.

“SOCAP Redux” by Paul Hudnut on BOPreneur

Paul Hudnut recaps his SOCAP experience as a panelist, where he offered an entrepreneur’s perspective on raising capital for social ventures in the developing world. At ID, we especially like Hudnut’s first lesson learned, which he shared on the panel. Hudnut advises entrepreneurs to think of raising capital as “hiring investors.” Investors, especially impact investors, must offer a good organizational fit, live up to their role and make a sufficient time commitment through both the good times and the tough times. The relationship between an entrepreneur and his investor must be strong and in sync. They have a responsibility to keep each other “in the loop.”

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Weekly Review September 5 – 9

2011-09-09T09:27:00.003-04:00

Image Source: Samsung

There’s never a shortage of news surrounding mobile technology. This week we read about new applications and smartphones, mobile money launching in Liberia and Zimbabwe, and the changes in the relationships between banks and telcos because of the growing popularity in mobile payments globally.

“Samsung launches Galaxy S II in Kenya” by Stewart Chabwinja via IT News Africa

There has been speculation that smartphones, which are coming down in price, will penetrate the African market and slowly replace “dumb phones.” Samsung Electronics has launched the Galaxy S II, an Android-powered smartphone in Kenya. It is expected that smartphones will drive Internet penetration in Kenya. Kenyans value their phones because of the many value-added services that leading mobile operators provide, most notably M-PESA and all of the other applications surrounding the mobile money transaction system.

“12 Apps to Pitch at AppCircus in Nairobi” via Afrinnovator

iHub and Akirachix are bringing AppCircus to Nairobi, Kenya where 12 groups will pitch their apps in front of an international jury of industry experts. AppCircus is “a unique global traveling showcase of the most creative and innovative apps presented by their creators during some of the most influential international events in mobile/web.” The best apps will be nominated for the Mobile Premier Awards 2012, to be held during the Mobile World Congress in Barcelona. A list of the apps that are presenting is available at the end of the article. Some highlights include CrowdPesa, an app that locates M-PESA agents or ATMs in the local area, and 3GInnovators, an app that compares prices, ratings, and offers on products and services.

“Liberia: Management of Lonestar Cell MTN, Ecobank – launched” via All Africa

The Central Bank of Liberia has given approval to Lonestar Cell MTN and Ecobank-Liberia to partner and provide a mobile money product in the Liberian market. The product platform is going by the simple title of “Mobile Money.” Lonestar Cell MTN is the largest mobile services provider and the first telco in Liberia. Mobile phone penetration is around 45% in Liberia, while fixed line penetration is less than 1%, due to unrepaired telephone lines damaged during wartime (stats via PPIAF). In addition, “only 10% of Liberians have bank accounts.” This, coupled with growing mobile penetration, presents an ideal market opportunity for mobile money.

“Econet to deploy mobile payment system in Zimbabwe” via The Paypers

Econet Wireless, the largest telco in Zimbabwe, announced this week that it will be launching its mobile money service this month. The m-wallet is currently being piloted and will be live by the end of the month. In 2009, according to World Bank data, Zimbawe’s mobile penetration was around 3 million subscribers, or 25% of the population. In 2011, The Paypers reports that Econet’s customer base has grown to around 5 million since 2009. The market is experiencing explosive growth. Econet is capitalizing on the window of opportunity and leveraging its 73% market share. Its new mobile wallet can be used for purchases or transfers worth USD $20 or less.

“Dreams of mobile payments lead telco to try banking” by Ryan Kim via Gigaom

In the never-ending effort to understand the complex world that is mobile payments, we often compare mobile payments in the developing world to banking in the developed world. The relationships between telcos and banks are reaching new, unprecedented stages. Already seen in Asia and Africa, telcos are acting like banks. In Canada, “mobile carrier Rogers has filed to become a bank under Canada’s federal Bank Act.” By doing this, Rogers will have the chance to earn a percentage of the revenue from payments transferred over a mobile phone. The mobile payments industry is expected “to become a $670 billion market by 2015,” (notably driven by developing countries, where mobile payments will double by 2015). Although there are vast differences in banks between the developed and developing world, it seems that the gap may begin to close, as users tend to rely on their phones more often.

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SOCAP11

2011-09-06T09:41:00.001-04:00

SOCAP11 was the inspiration for last week’s Weekly Review and the conference is finally here. The Invested Development team has had good experiences at SOCAP in the past, including our first introduction to social entrepreneur Femi Akinde and his company, SlimTrader, now an ID portfolio company. This year we’re hoping to meet new entrepreneurs and learn about their exciting new technological solutions to poverty. We’ll also be contributing to the conversation; you’ll find Invested Development team members on three panels at SOCAP11.

Miguel is on the “Technology Solutions: Ready to Scale” panel of the “Technology: Inclusive and Investable” track.
Miguel will also be on the panel for “The New Seed Funds: Filling the Gap in Early-Stage Impact Investments” for the “Entrepreneurs: Where Passion Meets the Pitch” track.
Sean, our Director of New Investments, will sit on “Pitch Session 1: Sustainable Consumer Products and Services,“ another session on the Entrepreneur track.

SOCAP provides a unique opportunity to bring together social entrepreneurs and impact investors who have a similar mindset. Although we may work across different industries such as mobile technology, healthcare, water, sanitation, or clean energy, we share the same motive. Impact investing is a collaborative effort with a mission to inject capital where it can make a powerful difference in the lives of the undeserved. Events like SOCAP are helping to ensure it stays that way.

Connecting with investors and entrepreneurs is essential, but we attend SOCAP each year for many reasons. One important reason is contributing to thoughts and discussions surrounding the impact investing space. This year we have the privilege of participating in three panels, but there are other ways we can all keep the dialogue going year around. For example, the respected NextBillion blog recently published a conversation-stirring article entitled “The Dangerous Promise of Impact Investing.” As a team, we felt obligated to contribute to the conversation and wrote a rebuttal, “The (Not So) Dangerous Promise of Impact Investing.” This was a healthy discussion designed to push the conversation surrounding impact investing forward.

We are grateful to the NextBillion for keeping the dialogue alive and look forward to other opportunities, beyond annual events like SOCAP, to continue debating the important issues in our field.

Weekly Review August 29 - September 2

2011-09-02T15:11:00.001-04:00

As usually is the case before a SOCAP conference, ID’s RSS reader is filled with news, thoughts, and opinions on impact investing, where “money meets meaning.” Here are some highlights that we found interesting, and watch for a post next week on why ID is attending SOCAP.

“How I Did It: EBay’s Founder on Innovating the Business Model on Social Change” by Pierre Omidyar via Harvard Business Review

How do you facilitate high net-worth individuals who are seeking to leverage their capital to create real impact, rather than just investing "socially responsibly"? Pierre Omidyar, eBay founder behind Omidyar Network, chronicled his journey of becoming an impact investor in an article in the Harvard Business Review. After eBay went public, Omidyar found himself immersed in unexpected wealth. After a couple years of donating here and there as a nonprofit family foundation, Omidyar needed to professionalize and structure the foundation with a defined strategy. He knew the amount of social impact that a business can have, demonstrated by eBay itself and its creation of new markets, livelihoods, and careers for people around the world. Omidyar sought “to harness the incredible power of business in order to make the world better” with his newfound wealth. Working with advisers, he overcame legal and structural hurdles to develop a limited liability corporation that employs staff members who conduct due diligence on investments in both nonprofit and for-profit companies. Thus, Omidyar Network broke ground on what we know as the impact investing circuit and blend the values of mission-driven non-profit managers and for-profit venture capitalists. Invested Development operates in a similar fashion, with a focus on for-profit social enterprise.

“Fast Company thinks social impact investing is a crock (with a long aside on cell phones)” by Sasha Dichter

In June, Fast Company ran an article titled, “Why Social Investing is a Crock.” The basis for the argument is the lack of randomized control studies which would measure the creation of impact by comparison. Such studies would gauge if there really is a difference made thanks to impact investing in a social enterprise or microfinancing. Sasha Dichter, the Director of Business Development at the Acumen Fund, wrote a rebuttal arguing that resources within a social enterprise aren’t typically going to be allocated to conducting an impact study. The example Sasha uses is cell phone adoption among the BoP, which have had undeniable economic and social impact, yet nobody has done a randomized control test to see if the impact really exists. Ultimately, an impact investor is seeking to “identify products and services that make a material positive impact on the lives of poor people” and “create business models that make the cost of providing each incremental product go down to zero…and beyond (meaning, you make a profit).” We wholeheartedly agree with Sasha on those two points, which is why we seek to invest in for-profit start ups that work and innovative in the mobile technology and clean energy fields.

“Innovation Agents – Sasha Dichter, Director of Business Development, Acumen Fund” by Lydia Dishman via Fast Company

Fast Company later went on to interview Sasha to promote the conversation within the space on why social impact investing is not a crock. In his blog post, he defended the existence of impact by way of social investing without randomized control tests. In this interview, Dichter explains the functions of impact investing so readers can better understand the functions of impact investing. Dichter highlights that impact investing is a “profit seeking, not necessarily profit maximizing, endeavor” but admittedly has his challenges. Funding, for example, is not necessarily the challenge, but rather organizations must find the talent that can deploy the capital in innovative ways. The model needs to work in order to allow funding to flow to those who need it.

“An Interview with Antony Bugg-Levine: Embracing Impact Investing” by Jocelyn Ling via Social Finance Canada

via Amazon

Newly named CEO of Nonprofit Finance Fund, Antony Bugg-Levine shares his thoughts on impact investing with Jocelyn Ling of Social Finance in a three part series. Bugg-Levine is also the Managing Director of the Rockefeller Foundation and GIIN board member. His new book, co-authored with Jed Emerson, is “Impact Investing: Transforming How We Make Money While Making a Difference” that offers an overview of the evolution and implications of impact investing. In Part I of the interview, Bugg-Levine outlines the content of the book and the purpose it aims to serve. Part II reiterates the book’s call to action, and invites those from all sectors and industries to embrace impact investing, whether actively or passively, in any way they can. In Part III, Bugg-Levine points out that the impact investing community needs to action, not rhetoric, as goes the classic phrase, actions speak louder than words. The activity in the space over the years has produced excellent momentum, which will continue to gain.

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Weekly Review August 22-26

2011-08-26T13:59:00.001-04:00

Via Afrographique

Developing countries tend to have high export rates of their most valuable resource: people. However, many changes on the ground in Africa are encouraging entrepreneurs to stay and create businesses and better lives for themselves at home. A successful entrepreneur in the developing world is no longer a rarity. In fact, entrepreneurs are finding great success in Africa in ways that also have the potential to have a significant impact.

“Female African Entrepreneurship” by Ivan Colic via Afrographique

Historically, entrepreneurs are more likely to be men, but women are certainly making a splash in the entrepreneurship marketplace .The latest post from Afrographique highlights data on female entrepreneurship in Africa. The chart shows that in Ghana, Botswana, and Zambia, almost half of enterprises are owned by women. This entrepreneurship climate shows a progressive attitude that will have social and economic benefits.

Strivers Foundation

A few weeks ago, Jeremy Fryer-Biggs introduced the Invested Development team to the Strivers Foundation, an organization that works with bright men and women in Uganda to help them achieve their entrepreneurial goals. The program benefits the individual as well as the economy by creating local businesses, jobs, products and services. One Strivers student, Nasur Mugega, shows real entrepreneurial drive and technological savvy. He developed a mobile phone charging platform powered by a bicycle and entered it in the Business Plan Competition to receive Strivers Foundation Funding. Nasur is an example of a bright student tapping into his entrepreneurial spirit to better his life and the lives of those around him. Many thanks to Jeremy for introducing us to him and the Strivers Foundation. Visit the site to read Nasur’s biography and those of other Strivers students who are studying and working to become entrepreneurs in Uganda.

“Africa: Investors Report Improved Business Climate in 29 Countries” by Neville Isdell via All Africa

After decades of skepticism from investors, entrepreneurs are frequently finding success in Africa. Many factors are contributing to the increase in entrepreneurship, including an explosive growth in mobile phone penetration (currently at 50% in the continent). The IFC and World Bank’s Doing Business 2011 report indicated that the ease-of-doing-business indicator has increased in many African countries and investment climates are improving. More efficient and less expensive business registration processes also allow Africans to tap into their entrepreneurial spirit.

“Zidisha: Financing Dreams and Empowering Entrepreneurs” by Clarissa Perkins via Social Earth

As entrepreneurship becomes increasingly common in Africa, so does the need for investment and lending. It is especially difficult for micro-entrepreneurs to borrow money, since most do not have bank accounts or access to financial services. Microfinance institutions have worked to change that, but we came across another solution leveraging technology. Zidisha is a peer-to-peer microfinance organization operating on an Internet-based platform. Entrepreneurs can create a profile to reach out to potential lenders. Lenders can read reviews on the borrower’s credibility and past repayment scenarios. The borrower and the lender can communicate directly through the platform. In Kenya, the funds are usually delivered via M-Pesa. To date, 130 businesses have been financed with a 100% repayment rate. This is a creative platform leveraging technology to empower the world’s poorest citizens.

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Weekly Review August 15-19

2011-08-19T08:00:00.002-04:00

In response to the slow but steady increases in smartphone adoption and data usage in Africa, developers are releasing mobile applications to increase interoperability in the mobile money industry. This week, we read about new mobile apps appearing in emerging markets that increase access to financial services. We also read about mobile Internet access throughout Africa that allows for the adoption of such services. Africa is leveraging mobile technology for social change.

“Kenya: Tech Firm Pulls Down Cost of E-Commerce with New App“ by Paul Vafula via All Africa
Craft Silicon has released a new mobile application, Elma, to facilitate mobile commerce transactions in Kenya. The application runs on 3G-enabled mobile phones and facilitates transactions among users and service providers who have installed the application. For a subscription fee of Sh80/month, users can “transfer money, pay bills, buy airtime, buy stocks, and check commodity prices.” Elma is claiming to be a solution for interoperability amongst mobile money service providers, no matter which Mobile Network Operators (MNO) hosts the service. By facilitating interoperability, more users in emerging markets can take advantage of mobile money transfer services.

“Application to wean mobile money off SIM card” by Patrick Githinji via Mobile Money Africa
Currently, mobile money users are tied to their MNO and can only make transfers to other users hosted by the same provider. Now, Orange Kenya allows money transfers by way of Java and WAP applications, unattached to SIM cards. Although this means that consumers won’t have to belong to a particular telecom, it will drive demand for such services. Interoperability leads to increased transaction frequency and increased adoption. According to the Orange CEO, the new Java and WAP applications will allow users to transfer money with their mobile device to “anywhere in the world.” Along with the start of 3G services in Kenya and a rise in smartphone adoption (see below), the demand for applications downloaded from or hosted on the Internet is growing. In addition to Orange’s new application and Craft Silicon’s Elma, Google is expected to allow mobile payments on the Android operation system later this year.

“Smartphones will drive Africa’s Internet uptake” by Savious Kwinika via IT News Africa
Smartphones and feature phones are required to facilitate the increasing adoption of mobile applications like Elma. While the most popular phone in Africa is the Nokia “dumb phone,” smartphones are becoming more affordable. Half of the African population owns a mobile phone. Twelve million Africans have data plans and this number is expected to grow to 265 million by 2015. Research in Motion, the maker of BlackBerry, reports growth in data usage amongst its customers. Although Internet penetration is currently low in Africa, leveraging mobile ubiquity to promote mobile Internet will “have a huge impact on productivity and efficiency in Africa” for individuals and businesses alike. Furthermore, more smartphones means more applications, opening the door for interoperable mobile money transfer services and financial inclusion.

“8ta slashes data prices – again” via IT News Africa
In addition to increased demand for applications, smartphones, and mobile Internet, data prices are falling in Africa. South Africa’s 8ta is offering a 3GB pre-paid data bundle for about $21USD. There’s no contract, so users can top up whenever they need to. 8ta also offers a 10GB post-paid data package.

“Dual SIM mobile phones ideal for Africa” via IT News Africa
Many Africans own two mobile phones to take advantage of the offerings of two different MNOs. In response, Samsung offers dual SIM phones and predicts that they will gain 15% of the market share with this offering. The dual SIM phone allows users to switch between SIM cards easily to take advantage of the network depending on where they are and whom they want to call. This type of phone gives users the opportunity to maximize their airtime on the network that suits them best in different scenarios. In the case of mobile money, it would allow users to make transfers with the mobile service provider or two different operators. This, however, does not allow for universal interoperability like Internet-enabled mobile applications.

Weekly Review August 8-12

2011-08-12T08:58:00.003-04:00

Solar panels at a tent village in India

This week we read a lot of articles on the global efforts to eliminate energy poverty. At Invested Development, we’re interested in electrifying the poorest countries to promote development using clean and sustainable energy. In addition to development, energy access can also prevent humanitarian crisis like the one we’re currently seeing in the Horn of Africa. Businesses, agencies, and governments need to work together to research and develop clean technology to eliminate energy poverty in its many forms.

“U.S., India Collaborate on Scientific Research” via Voice of America Editorials

The U.S. and India are working together to research and develop clean technology. Specifically, The Partnership to Advance Clean Energy (PACE) exists to research and deploy clean technology innovations. Both the U.S. and India are aiming to better understand the production of clean energy in their countries, but the lasting effect for India particularly would be profound. Access to clean energy technology in India would allow poor people to work and study longer, stay healthier and save money in comparison to costly kerosene. This partnership to electrify India contributes to the country’s efforts to advance economic growth and reduce poverty by 50%, the first Millennium Development Goal.

“Rwanda: Govt to Meet 16 Percent Power Access Target Next Year” by Frank Kanyesigye via All Africa

In 2009, 7% of Rwandans had access to electricity. Currently, in 2010, 14% of the Rwandan population has access to electricity. The government is aiming to increase electrification to 16% by the end of 2012. Coletha Ruhamya, the State Minister of Energy and Water, believes that increasing access to power will “contribute to economic growth, social development, and poverty alleviation.” Currently, the main energy source in Rwanda is wood fuel, which is damaging to the population and to the environment. Globally, indoor smoke from biomass fuels like wood has contributed to 1.6 million premature deaths each year, especially amongst women and children in developing countries (WHO, 2005). The Rwandan government will find that promoting and investing in not just electricity, but clean energy, will lead to sustainable and safe economic growth, social development, and poverty alleviation for its people.

“Angola: Government to Facilitate Rural People’s Access to Electricity“ via All Africa

Angola’s State Secretary for Energy, Joao Borges, announced a new plan to electrify rural parts of the country in an effort to avoid over-crowding in cities. This announcement also comes as part of an effort to promote development in the country. Borges hopes to implement clean energy solutions like solar power.

“Preventing the Next Somalia: Energy + Water = Food” by Robert A. Freling via Huffington Post

Famine in the horn of Africa has left humanitarian organizations scrambling to provide aid. Already 30,000 children have starved to death with another 500,000+ at risk. However, sending $700 million in humanitarian aid is only a temporary fix. Long-term solutions are required to make a lasting change in the region. Energy plays a key role in maintaining food security. In many parts of the world, like Somalia, irrigation systems save crops in times of drought or dry seasons. Without reliable energy systems in place, irrigation can be impossible and crops will perish, as is the case in the Horn of Africa. For example, the Solar Electric Light Fund facilitates solar electrification by offering solar pumping technology to agricultural villages, enabling reliable irrigation to water and fertilize crops. While the short-term need in Somalia is desperate, long-term solutions such as solar-powered drip irrigation will prevent the same from happening again.

“Targeted financing needed to expand energy access in developing world”
by Daniel Kammen via The UC Berkeley Blog

The UN Secretary General has designated 2012 the “International Year of Sustainable Energy for All” in an effort to keep pace with the UN’s Millennium Development Goals and eliminate energy poverty. The World Bank also considers energy access a key strategy to eliminating global poverty. A variety of tools are employed to meet these goals, like battery subscriptions, progressively purchased solar home systems, or solar-powered energy storage systems. No matter what tool is used to electrify the electrified, funding is required to research and develop these innovations. A new paper, “Informing the Financing of Universal Energy Access: An Assessment of Current Flow ” delivers an assessment of appropriate and effective policies to reduce energy poverty. The solution to eliminating energy poverty, thereby serving basic human needs and contributing to global economic health requires targeted financing in impacting and affordable innovations.

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Senior Investment Analyst

2011-08-08T15:24:00.002-04:00

Senior Investment Analyst

Overview
Title: Senior Investment Analyst
Start Date: Immediately
Location: Boston, MA
Schedule: Full Time/20% travel possible
Pay: Salary commensurate with experience

Invested Development is looking for a highly motivated individual with experience in start-ups, investment analysis, or business lending to serve as our Senior Investment Analyst. This is a senior position in a small, exciting, young firm. Candidates should have a keen interest in international development, venture capital, entrepreneurship, and technology. The ideal candidate is a self-starter, works independently, and possesses strong communication and analytical skills. Willingness to travel and/or move to India is a plus.

Schedule is flexible but demanding with some national/international travel required. Salary is competitive for a small young firm with an opportunity for bonuses and equity participation.

Applicants should be comfortable working in a start-up environment with minimal resources and supervision. This is a great opportunity for a smart and ambitious leader who is ready to have a lasting impact on a growing enterprise.

Job Description
The Senior Investment Analyst will source and vet very early stage impact-oriented angel investments, focusing on India and South Asia. In addition to performing in-depth analysis of business plans and investment proposals, the Senior Analyst will coordinate an active investment pipeline, manage and support an Investment Analyst, and actively monitor portfolio performance. Key duties include:

Building a robust network to actively promote ID and attract the best start-up companies in our investment niche;
Coordinating deal flow from initial review to closing,

Performing in-depth investment due diligence such as market analysis,
Performing in-depth financial analysis and projections,
Reviewing the work product of an Investment Analyst and Interns,
Assessing key strengths, weaknesses, opportunities, and threats (SWOT) of seed and early stage social angel investments;

Sourcing new investment opportunities through event attendance, online sources, networking, and working with the ID Director and Research & Marketing Director;
Maintaining up-to-date knowledge on industry-related deal terms.

In addition to the key duties outlined above, the ID Senior Investment Analyst will be expected to assist the ID Director with new business development and investment product innovation.

About Invested Development
We are a for-profit impact investment fund manager sourcing and creating the most impacting solutions to global poverty.

For more information please contact Christina at: ctamer@investeddevelopment.com

Weekly Review August 1-5

2011-08-05T11:10:00.001-04:00

As the mobile money industry grows and evolves, we are seeing new business models emerge. More and more mobile phone users around the world are finding access to financial services through branchless banking. Here at ID, we’re working to stay on pace with the ever changing risks and opportunities.

“Worldwide Mobile Payment Volume Up 76% to Reach $86 Billion in 2011” via Mobile Payment Magazine

The proof that the mobile payment industry is growing and evolving is in the numbers. In 2011, 141.1 million users worldwide will transfer a forecasted $86.1 billion, according to Garter, Inc. and the Mobile Payment Magazine. Users are up 38.2% from 2010 and the volume of transfers is up a staggering 75.9%. Additionally, SMS and USSD will continue to be the dominant access technologies in developing countries. Money transfers are also driving mobile commerce, which is where the door opens for emerging business models. With new business models, new risks and complexities present themselves simultaneously.

“MobiKash Afrika rolls out mobile banking platform in Kenya” via the Paypers

MobiKash Afrika is a mobile commerce service provider. This week, the company launched their mobile banking platform that will be operable across Kenya’s four GSM networks and across participating banks. This will allow users to pay for services and products with their phones and cash-in/cash-out at any one of the anticipated 3,000 agents. MobiKash will be vying for market share with the dominant M-PESA, which has about 20 million customers. On the other hand, MobiKash has the advantage of offering cheaper transaction fees than M-PESA and is operable across all mobile networks.

“Africa sprints ahead with mobile banking” by Vanessa Clark via Mobile Money Africa

Whether it’s mobile network operators offering mobile money transfer services, or banks offer mobile banking technology in partnership with a MNO, the African continent is a breeding ground for mobile money operations. In fact, Visa recently purchased Fundamo, a South Africa mobile financial services infrastructure provider, for $110 million. African countries “are making large strides forward in this space,” fostering new mobile banking models for the banked, unbanked, and under-banked. In a continent with an ever increasing mobile penetration rate (currently at 50%) and an estimated 70% unbanked or under-banked, access to financial services via mobile phone is the ideal solution. The CEO of FNB Africa, Danny Zandamela, said, “Mobile money services offer an inexpensive and convenient method to bridge the gap between the banked and unbanked. The African continent, by pure virtue of being one of the fastest growing mobile phone markets in the world, is the ideal environment for such innovation.”

“State Bank of Pakistan Removes Barriers to Branchless Banking” by Chris Bold via CGAP

Pakistan is one of the first countries in the world to introduce regulations specifically designed to encourage branchless banking. The regulations allow for a variety of business models and an extended agent network to deliver financial services on behalf of banks. The State Bank of Pakistan recently amended the regulations to further encourage branchless banking and increase access to financial services for the poor. Biometric fingerprints are no longer required to open an account, only a digital image of the account opener. Additionally, there are no maximum account balances and there have been substantial increases in transaction limits. Finally, a new “Level 0” account allows more people to open an account without physical paperwork. According to Mr. Mansoor Siddiqui, the Director for Banking Policy & Regulations, the changes were necessary to keep pace with the rapidly evolving industry.

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Weekly Review July 25-29

2011-07-29T10:44:00.003-04:00

This week we reviewed how mobile commerce can help rural African farmers rise out of poverty.

“How SlimTrader’s Service Works for Notore;” “Providing the Missing Link in Northern Nigeria’s Agricultural Supply Chain;” “SlimTrader Launches Outreach Effort in Nigeria” via SlimTrader Blog

Our portfolio company, Slimtrader, has partnered with Notore, “an agro-allied and chemical company ….supporting local food production.” Together, they’re piloting SlimTrader’s mobile commerce platform, MoBiashara. MoBiashara allows farmers to check Notore inventory and purchase Notore products with simple SMS text messages. This is mutually beneficial for both the farmer and Notore, the farming supply provider. SlimTrader is publishing a series of blog posts to document their pilot. Currently, SlimTrader CMO Betty is leading the demonstration and implementation of MoBiashara in Nigeria amongst rural farmers. The following video demonstrates how the MoBiashara and Notore pilot works.

“Text Layaways Pull Africans Out of Poverty Trap” by Kat Asharya via Mobile Money Africa

In addition to SlimTrader’s mobile commerce platform pilot targeting rural farmers, other organizations are promoting “mobile-based financial innovations designed to empower Africa out of poverty.” KickStart has started a program in Kenya that “allows entrepreneurial farmers to buy their products through a [SMS] text.” The money is transferred through M-Pesa via a secure shortcode. Farmers can pay off irrigation systems in convenient increments rather than paying for them all at once, which is usually impossible for BoP farmers. “The system lets buyers set aside small money amounts into an electronic bank” which acts as a secure savings environment. Mobile commerce and mobile money applications are common throughout Africa and bring farmers out of the “poverty trap.”

“Android Phones Help Poor Farmers in Uganda” by Nancy Gohring, IDG News via PC World

Earlier this year, we wrote a post called "How App Developers Can Change the World," highlighting the power and impact that smartphones could have in rural villages in underdeveloped countries. Now, the Grameen Foundation Technology Center is developing a scheme that allows “community knowledge workers” in Uganda to use “Android phones loaded with an open-source data-collection software that feeds data into Salesforce.” This empowers rural Ugandan farmers by granting them access to valuable information about market prices, weather reports, and planting advice. Grameen selects a few local farmers to become community knowledge workers, and offers them a loan to buy the Android phone. They then have access to and the power to share information about crops or farm animals. The community knowledge workers also collect data about crops and farm animals from the local farmers and enter it into the phone, which Grameen pays them to do. Grameen is using a Huwaei built Android Ideos with comparatively good battery life serviced by MTN Uganda. While many question why Grameen does not use a basic feature phone, Grameen foresees dropping Android prices and argues that the open source model allows them to use their own developers. This model also creates value beyond that in the village by collecting valuable data. “Organizations including the World Bank, Heifer International and others are paying Grameen for data that the knowledge workers collect by conducting surveys with the villagers.” These organizations are also seeking geographic data and photos, which the Android enables. So far, “the workers have interacted with 24, 000 households,” and many farmers are using the information to improve their farms.

“Africa’s mobile economic revolution” by Killina Fox via The Guardian

This article also discusses the Grameen Foundation’s community knowledge workers scheme in Uganda. Killian Fox visited the Gulu District in Uganda to visit one of Grameen’s community knowledge workers, a farmer named Simon Obwoya. Obwoya shares both the trials and tribulations of relying on an Android for farming information. Obwoya struggles to charge his phone, doing everything from riding his stationary bicycle to eventually visiting a local battery trading station. With his Android phone, he has registered over 300 farmers, and has exchanged data with all of them. These farmers have received many benefits. Using the information he found on his Android, Obwoya forewarned the farmers of a long anticipated drought for this year, prompting many farmers to “take their time before putting down their seeds,” saving seeds, time, and money. This is a simple example of how access to information through mobile phones can improve the lives of the world’s poorest citizens.

“Teaching Rural Farmers with Cell Phone Videos” by Jerilyn Watson and Steve Baragona via Voice of America Special English Agriculture Report

In addition to serving as a business tool for rural farmers, mobile phones can be a teaching tool as well. The University of Illinois launched a project called Scientific Animations Without Borders (SAWBO) that “produces educational videos that can be downloaded to cell phone [with the goal…] to help people in developing countries improve their lives.” The animated videos feature a native narrator to reach the targeted rural African farmers. The videos are available in “eighty languages, dialects, and accents.” The videos explain a variety of farming tips and practices, like how to protect crops by making and using a natural insecticide. A sample video from SAWBO is below.

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Weekly Review July 18 – 22

2011-07-22T08:55:00.004-04:00

via unep.org

With the release of “Global Trends in Renewable Energy Investment 2011” from the UN Environment Program, many publications are lauding the $211 billion worth of global investment in renewable energy in 2010. The impact investing industry contributed to that number. This week, we looked at articles discussing the rising amounts of capital invested in clean tech and renewable energy, especially in developing countries.

“For The First Time, Developing Countries Spending The Most On Renewables” by Michael J. Coren via Fast Company
In 2010, developing countries propelled themselves “toward a future powered by clean renewables” like solar, geothermal, and wind “in parts of the world where they are often the only source of power available.” In 2010, “investors poured a record $211 billion into renewable energy in 2010… a 540% rise since 2004,” according to the new UNEP report. It’s remarkable that countries like Kenya, Pakistan, and Argentina are beginning to increase their energy accessibility, specifically with renewable energy. If our neighbors in the developing world can afford renewable energy, surely the developed world can do the same, especially considering that “the price of PV solar per megawatt has dropped 60% since mid-2008.”

“Renewable Energy Investments Set New Record, Up 32% in 2010” by Andrew Burger via Triple Pundit
Further to the fact that $211 billion was invested in renewable energy in 2010, $72 billion was invested in “faster-growing developing economies.” Notably, renewable energy investments were highest in China at $48.9 billion, followed by “$13.1 billion in South and Central America… $5 billion in the Middle East and Africa… $3.8 billion in India…. $4 billion in [other] Asian developing countries.” In addition to capital, research and development expenditures on renewable energy have increased globally. A combination of government policy and private equity are contributing to the electrification of rural markets along with sustainable economic development.

“A research revolution to save the planet” by Jonathan Glennie via The Guardian UK
The world is approaching the 7 billion population mark and global energy demands are increasing. At a climate change workshop held by the Asia Europe Foundation, Shell argued that “the world will need to be producing about twice as much energy in 2050 as we are today,” while lowering carbon emissions simultaneously. The obvious solution is clean tech, the only problem is the high expense when compared to dirty energy. Research and development propels technological advances and “if we were to invest more [in clean technology], progress would be rapid. It is the difference between having 1,000 university working on a problem instead of 100.” Developing countries have had the smallest impact on the environment, but are now adopting clean technology faster than the damaging, developed countries because any changes in the environment will dramatically affect their citizens. Consider India, where “300 million people live by the coast – a rise in sea level matters.” Investment in clean technology will proactively prevent poverty caused by climate change and actively combat poverty by increasing global access to energy.

“Unlocking investment in Africa: could private equity be the key?” by Yingni Lu and John Battersby via The Africa Report
More and more private equity funds are looking for African investments. In addition to less competition and good deals, African investments have significant potential for social impact, which appeals to impact investors like us. Additionally, “the average Africa fund performs as well as average global funds,” which appeals to investors of all types, whether impact driven or not. Investors and governments are seeking to utilize the growing investment in renewable energy for sustainable economic development. For example, South Africa has vowed to reduce carbon emissions with a set “target of 42% of new electricity generation to be met by renewable energy sources such as solar, wind, and wave-generation by 2030.” With a combination of government policy, foreign direct investment, and private equity, South Africa’s goal is very possible.

“Unprecedented success in Beijing paves avenues for impact investment” by Kevin Short via New Ventures
In the impact investing industry, it is often difficult to match entrepreneurs with the right impact investors and vice versa. New Ventures hosted an Investor Forum in China last month centered on “the region’s development towards becoming a vibrant hub of environmental entrepreneurship.” Social entrepreneurs came together to present and discuss business models and to connect with impact investors. The Investor Forum attracted many different types of clean tech businesses and “marked the intersection of environment and development in China.” New Ventures is responsible for connecting Chinese environmental entrepreneurs with $150 million in capital from impact investors. Following the success of the Investor Forum, “New Ventures is now considering facilitating creation of a China-based impact investment fund that directly targets SMEs in the environmental sector.” China will continue to lead the way as an example of increased investment in clean tech in the years to come.

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Weekly Review July 11-15

2011-07-15T08:00:00.001-04:00

At ID, we often discuss the benefits of mobile phones for those at the Base-of-the-Pyramid. Access to mobile phones is proven to increase financial inclusion and accessibility to basic goods and service. This Weekly Review examines the benefits of mobile phones specifically for migrant workers.

“Editorial: Access to financial services” via The Jakarta Post

Forty million Indonesians do not have access to formal financial services. This lack of financial inclusion stunts growth and development in the region. The government is working to create solutions for its people. Mobile money services have been successful elsewhere, and would be welcomed by the estimated 70% of the population with mobile phones. If the government were to “expand the regulatory framework for service providers to use mobile and electronic banking… banks and non-banks [could] provide a wider range of services through low-cost mobile banking solutions such as short message service (SMS).” Importantly, the article notes, this would enable Indonesian migrant workers to send money home easily and safely. In fact, this idea has been proven successful for Filipino migrant workers, who sent “remittances worth millions of US dollars home every month.”

“Indonesia To Give Migrant Workers Free Mobile Phones” by Steven Millward via Penn Olson, The Asian Tech Catalog

Last year, 4,000 Indonesians worked temporarily in South Korea. So far this year, 3,000 Indonesians have migrated to South Korea to work temporarily. As a result of the rising numbers, the Indonesian government and the National Agency for the Placement and Protection of Indonesian Migrant Workers announced a plan to provide 8,000 to 10,000 mobile phones each year to migrant workers. This deal is “in cooperation with the local manufacturer PT Nurkumala Abadi, a subsidiary of South Korea-based LG.” The goal of the plan is to encourage migrant workers to communicate consistently with their families and related government authorities at home to enhance their safety and comfort while working abroad. The government hopes this plan will prevent tragedies like the recent beheading of an Indonesian maid working in Saudi Arabia.

“Creation Investments Social Ventures Fund 1 leads a $5.5 million USD investment into Eko India Financial Services Private Limited” Press Release by Patrick Fisher via Creation Investments

Creation Investment Social Ventures Fund will invest $5.5 million in Eko India Financial Services, a “mobile banking technology provider in India.” Eko India provides financial services India’s unbanked, particularly to accommodate migrant workers. To date, Eko India “has served 912,455 customers through its 1,300 customer service outlets and employs 100 people.” Creation Investments CEO Patrick Fisher states: “We believe that Eko has best-in-class technology which gives easy, secure, inexpensive and convenient last-mile connectivity to the unbanked, migrant workers and the poor.”

“Staying in text” by Tammy Grubb via Chapel Hill News

For Hispanic migrant workers and immigrants living in the United States, learning English can be an overwhelming obstacle to communication. To ease the transition for Hispanics in the US, there is a new SMS messaging service called ReK2 (pronounced reh-CAH-dos). ReK2 helps users learn English by sending daily vocabulary. ReK2 also “sends out weather reports and lets users post and read classified ads” to find work. More than 450 users in North Carolina and Virginia use the service.

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Opportunity in Egypt

2011-07-14T08:46:00.004-04:00

Cairo's Tahrir Square during the Revolution via Wikimedia Commons

After the Egyptian Revolution of 2011, a man named his daughter “Facebook” in honor of the site’s mobile app and the role it played. On Twitter, #jan25 was trending for weeks, as Egyptians tweeted from their phones to report on the protests. Despite the government’s best efforts to cut off communications, protesters were able to organize through mobile technology. It’s clear that few places in the world have experienced such a dramatic impact of social networking and mobile technology, but why this happened and what will happen next are less apparent.

Why Egypt?

Around the globe (and, in particular, across Africa) there are plenty of leaders who have overstayed their welcome. Yet few have been hit with an uprising as intense and well organized as the one that brought down Hosni Mubarak. A quick reflection on a few indicators highlights three intriguing variables that influenced Egypt’s unique revolution:

Economy - Egypt boasts the second highest GDP in Africa. This might sound like a counter to revolution, but it takes a certain level of development for citizens to organize. As Paul Collier described in Wars, Guns, and Votes: Democracy in Dangerous Places it also takes a minimum income level for people to afford political activism. Egypt’s comparatively robust economy provided both. At the same time, affluence is very poorly disbursed. An estimated 22% of the population lives below the poverty line, a staggering 44% are illiterate, and less than 10% have bank accounts.[1] The dangerous divide is common across emerging markets and has long been fodder for uprising.

Infrastructure - In a continent that has seen the fastest adoption of mobile phones in the world, Egypt’s mobile penetration is over 90%[2] and sources expect that Egypt will reach 100% mobile phone penetration by 2013[3]. Paraphrasing Gil Scott-Heron, the revolution was not televised. In Egypt it was broadcast via mobile social networking platforms and Egypt’s telecommunication infrastructure ensured that over 70 million of Egypt’s nearly 84 million citizens could tune in.

Unemployment - Joblessness cuts three ways. First, it creates anger and desperation as people struggle to afford basic needs. Second, losing a job removes much of the recourse that dissuades people from illegal or banned activities. Finally, it provides the time to gather. In Egypt, nearly 9.4% are officially unemployed[4] and unofficial numbers are likely much higher. More importantly (in this scenario), nearly 90% of the unemployed are under 30 years old.

The confluence of a vast unemployed youth with existing infrastructure to coordinate undoubtedly played a role in the successful deposition of Mubarak. The same attributes are also creating a tremendous opportunity for entrepreneurs and impact investors to influence Egyptians’ success in rebuilding.

Where to Next?

The good news is that there is untapped potential for investment and development in Egypt. Despite relative economic wealth compared to its Sub-Saharan neighbors, many problems remain and investment in entrepreneurship, technology, and the country’s youth will shape the future.

Social entrepreneurs can harness the mobile technology that was so dramatically influential during the revolution to promote sustainable economic development and make lasting social impact. It’s proven that for-profit social enterprise can play a significant role in post-conflict resolution. As a study of post-war Bosnia-Herzegovina showed, business and workplaces contribute to community development and “rebuilding post-conflict societies” better than volunteer organizations[5]. Although traditional investors may find post-conflict areas too risky, the potential for impact investors to reap both financial and social returns is too great to ignore.

In Egypt, entrepreneurs have an amazing opportunity to create for-profit social enterprises that develop and distribute new mobile technologies, that combat the unique issues their fellow countrymen face. Illiteracy, unemployment, and financial access (click on the issues to see examples of mobile technologies that have been developed to combat each issue) all have benefited from the emergence of mobile devices. Both the need and the demand exist and thanks to the existing telecommunications infrastructure, the solutions already lie at the fingertips of 90% of Egyptians.

[1] http://thedailynewsegypt.com/banking-a-finance/transfers-ready-but-full-fledged-mobile-banking-to-take-longer-in-egypt.html

[2] http://www.egyptictindicators.gov.eg/en/pages/Publications/PublicationsDoc/Eng%20Flyer-April-%20last.pdf

[3] http://english.ahram.org.eg/~/NewsContent/3/12/14445/Business/Economy/Going-mobile-Egypt-gears-up-for-cellphone-banking.aspx

[4] http://data.worldbank.org/country/egypt-arab-republic

[5] http://pmpick.people.wm.edu/research/EthnicRacialStudiesPickering.pdf

Weekly Review July 4-8

2011-07-08T09:38:00.001-04:00

Tomorrow, South Sudan becomes the newest country with their declaration of independence. At ID, the newfound independence sparked a conversation. We discussed social enterprise in post-conflict areas, and found that social enterprise will be and has been effective in South Sudan and throughout other conflicted areas in the world.

“Arab public sectors, the new battlefield” by Dag Detter via Al Bawaba

Recently, we’ve watched public uprisings unfold in Tunisia, Egypt, and Libya over high unemployment rates, mismanaged public sectors, and outdated political regimes. The common trend in MENA seems to be state-owned enterprises failing to meet the public’s needs and demands, which are as simple as employment and transparency. “A regional reform program for state-owned enterprises is a financial and social enterprise with global relevance.” Such social enterprises will not only development the economy, but give the people what they want: jobs.

“Going for mobile money, Egypt operators face uphill battle” by Desmond Shephard via Mobile Money Africa

photo: Mai Shaheen via Ahram Online

Earlier this year, information and communications technologies played an integral role in the Egyptian revolution. Many will recall that Internet and phone services were shut down during the protests to oust President Hosni Mubarak. Despite the highly influential ICT sector in Egypt and obvious success of mobile money transfer services throughout Africa, mobile money operators will find it difficult to penetrate the Egyptian market until the telecoms recover their losses from earlier this year. Social enterprise in the form of mobile wallets will grant financial inclusion to the 90% of the population who do not have access to traditional credit cards.

“Inzozi Nziza, a social enterprise in Rwanda, sells ice cream and trains entrepreneurs” by Jonathan Kalan via Christian Science Monitor

In an effort to bring economic opportunity to a country still scarred from genocide in 1994, two non-profits, Blue Marble Dreams and BPeace, teamed up to open Rwanda’s first ever ice cream shop. BPeace believes that “creating jobs creates peace.” The ice cream shop, called Inzozi Nziza or “Sweet Dreams,” is a unique social enterprise with both financial and social goals. Although not a high-tech product or elaborate business model, Inzonzi Nziza exists to foster entrepreneurship and provide employment for Rwandan women who were directly affected by the Rwandan genocide. The women working at Inzozi Nziza received training in all aspects of business and ice cream service. While there are some struggles for this one-year-old social enterprise, Inzozi Nziza serves as an example of using business to create economic and social change in post-conflict areas.

“The private sector must assume a central role in global development” by Peter Davis via Guardian

The private sector has the power to create successful businesses that will also protect the environment, reduce poverty, and promote sustainable agriculture and safe water management. Especially in areas in post-conflict resolution stages, the article reports, the private sector has a significant influence on the development of a devastated area. For some investors, it may seem too risky to invest in post-conflict zones, however the potential for significant social return outweighs the cost of patient capital. In fact, for-profit social enterprise over non-profit philanthropy has a better capacity to develop a post-conflict area. “A study of post-war Bosnia concluded that ‘workplaces… [are] better suited than neighbourhoods or voluntary organisations for building bridges.’”

“South Sudan presents a mixed bag for business” by Steve Mbogo via Business Daily Africa

Kenya has been a key ally in South Sudan’s efforts to gain independence. Now, Kenyan business will play an influential role in the development of the world’s newest country as of July 9, 2011. Many Kenyan enterprises operate in South Sudan and a surge of new businesses is expected in the newly independent country. With the support of North Sudan and a largely anticipated peaceful declaration of independence, impact investors and social entrepreneurs may find new opportunities in South Sudan. An improved business environment means that it will take 15 days to register a business, compared to Kenya’s 30+ days wait time. Additionally, a new South Sudanese currency and Central Bank will build financial independence for the new nation. All around, South Sudan is a new market for social enterprise and investment for those willing to take on the challenge.

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"The (Not So) Dangerous Promise of Impact Investing" on NextBillion

2011-07-07T13:48:00.002-04:00

"The (Not So) Dangerous Promise of Impact Investing" by Miguel Granier and the Invested Development team on Next Billion

"Nilima Achwal recently detailed a conversation with Felix Oldenburg of Ashoka Europe in an article titled "The Dangerous Promise of Impact Investing" on Next Billion. The post was billed as a "radical critique of the current hype surrounding impact investing" in which Oldenburg not only attacks the hype, but the industry as a whole. As impact investors, we welcome such criticism because it will help clarify the role of impact investing within the space. That said, we disagree with many of Oldenburg's assertions and hope that sharing our perspective will help move an important conversation forward...."

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Weekly Review June 27 - July 1

2011-07-01T08:00:00.002-04:00

This Weekly Review includes stories on a key industry trend: mobile penetration in Africa lending itself to financial inclusion and economic and social development.

via Afrographique

“Mobile phones in Africa” by Ivan Colic via Afrographique
We recently came across the blog Afrographique by Ivan Colic. Colic collects data from reliable sources like the World Bank or the IMF, and presents the information in aesthetically pleasing and easy-to-understand format. Check out his site to see many more colorful and informative infographics to gain some insight on Africa and its people. His most recent post tells us that “in 2011, there are 32 non-smart phones for every 1 smart phone” in Africa. By 2015, the gap will close slightly to “5.6 non-smart phones for every 1 smart phone.”

“Activate 2011: Mobiles look set to play a big role in Africa’s development” by Madeleine Bunting via The Guardian
At the current growth rate, everyone in Africa will have a mobile phone by 2020 (Praekelt Foundation). Relatedly, economic development in Africa is expected to rise dramatically over the next five to ten years. Mobile phones will lend themselves to significant economic and social development and “the race is on to find what mobiles can do in areas as disparate as public health, governance and education.” Mobile money and Internet access are perhaps two of the most significant development leaps made possible in rural areas where banking and educational services are limited. Bunting describes many other examples of the benefits of mobile phone penetration in Africa, even if the most popular phone is the basic Nokia with nothing fancier than SMS capabilities.

“Mobile banking services to help two billion people by 2020” by Fredrick Onyango via Business Daily Africa
A recent Boston Consulting Group study reports that mobile money services will provide financial inclusion for two billion people by 2020 and drive development in emerging markets, especially Africa. Financial inclusion fosters “entrepreneurship, new business creation and new jobs.” The report found that the need for mobile money is great: “some 72 per cent of the population in developing countries are without access to banks or credit cards.” Many mobile money services are leading the way for social and economic development, including most famously M-PESA and our own portfolio company, SlimTrader.

“Teachers to Receive Salaries Via Mobile Money in Rwanda” by Bosco R. Asiimwe via Mobile Money Africa
Africa is notorious for slow-moving money. In an effort to pay teachers on time, the Teachers’ Credit and Savings Cooperative – Umwalimu SACCO will employ mobile money transfer services to pay their staff. In the past, teachers had to make long, expensive, and time-consuming journeys to collect their paychecks. This is another example of a simple solution with mobile phones that saves a lot of time, effort, and money that can now be spent elsewhere. The article notes that some teachers may invest in solar panels with their savings.

“Mobile money coming to Ethiopia” via Mobile Money Africa
M-Birr is the newest mobile money service provider in Africa, finally bringing services to Ethiopia. M-Birr’s parent firm is NCL Technologies, an Irish company. The government has historically controlled Ethiopia’s ICT industry. Late last year, the Ethiopian government hired France Telecom to manage the newly restructured Ethio Telecom. Ethio Telecom is the only ICT provider in Ethiopia, the country with the fifth-fastest growing economy worldwide according to The Economist. Ethiopia’s mobile subscriber base is growing and the government is investing in national infrastructure to facilitate and meet the demand for mobile technology including Internet access and mobile money services like the ones offered by M-Birr.

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Weekly Review June 20-24

2011-06-24T11:17:00.004-04:00

This week at ID, we read about progress and developments in mobile technology around the world.

“SlimTrader Lets Africans Shop via Text” by Ciara Byrne of Venture Beat via The New York Times

Our portfolio company SlimTrader was featured in The New York Times. Byrne used SlimTrader as an example of a company working in developing countries to facilitate customer transactions via SMS text messages. Founder and CEO Femi Akinde experienced firsthand the time-consuming transactions of daily life in Africa, especially in rural areas. The article goes on to explain SlimTrader’s business model as a solution for the Base of the Pyramid.

“Kenya launches Africa’s first mobile apps lab” by Nmachi Jidenma of The Next Web’s Africa

With 300 million mobile phone users in Africa, mobile apps labs are appearing throughout the continent. The newest one in Nairobi, Kenya aims to encourage innovation and “is supported by the World Bank, Nokia and the Government of Finland.” The lab was officially launched one day after Pivot25, “a mobile app developer contest held in Nairobi” where developers pitched their mobile app ideas. Invested Development attended Pivot25 earlier this month.

“Demonstrating how mobile money is helping Haiti” by Cameron Peake via Mercy Corps

Citing “the power of cell phones” as a vehicle for positive social change, Mercy Corps recently hosted an event on Capitol Hill on mobile technology and social change. The reception was called “Innovation for Impact: How Mobile Technology is Spurring Grassroots Recovery in Haiti.” Mercy Corps representatives and members of Congress discussed innovation in mobile technology and the efforts to increase financial services for the poor. Currently Mercy Corps is working with m-Via “to offer mobile-directed remittances products to Haitians.”

“Nigeria: ChamsMobile partners Bancore, Skye Bank for m-payment service” via The Paypers

The mobile money market in Nigeria is finally heating up; nearly a year after the Nigeria Central Bank opened the doors to alternative payment providers. ChamsMobile (a division of Chams Plc) joins a handful of competitors like Pagatech and Monitise vying for dominance of Africa’s largest market.

Weekly Review June 13-17

2011-06-17T06:00:00.002-04:00

Every week at ID we read articles about what we do and what we like. This week we read a lot about innovation in energy.

“Dr. John A. Rogers awarded $500,000 Lemelson-MIT Prize for health and energy innovations” Press Release via Lemelson Foundation

Rogers received the Prize for his work in technology contributing to human health and, related to our investment focus, the commercialization and increased scalability of photovoltaic solar power. Rogers has worked in photovoltaic solar, converting solar light to electricity. Rogers co-founded Semprius, a company that develops low cost, high performance “CPV modules to make solar power generation economically viable in sunny, dry climates.” Through a partnership with Siemens, Rogers scaled his system to make power affordable and economical in sunny areas, ideal for use in emerging markets throughout Africa and South America.

“South Africa: Poor Energy Policy Undermines Energy Diversity” by Glenn Ashton via All Africa

The Western Cape of Africa holds a promising future in clean energy. Last year, the Western Cape Environment Minister “received applications for installation of over 11,000 Megawatts (MV) of wind energy generation capacity.” Unfortunately, these privately-funded, market-driven initiatives face many delays due to the unnecessary bureaucratic delays and obstacles. The national energy policy has been topic of political discussion for many years, due to the massive economic and social costs that the poor energy system is imposing on South African citizens. New government policies encouraging energy diversity, like finalized versions of the Integrated Resource Plans (IRPs), would open the door to market-driven energy solutions and improve the South African economy at all levels.

“The d.light S1 lantern” by Ravi Kumar via Acumen Fund Blog

d.light’s newest solar lantern is available for only USD$8, offering an excellent alternative to typical kerosene lamps. The S1 lantern is healthier, more energy efficient, and more affordable than kerosene. A day’s charge in the sun provides four hours of bright light after dark, adding precious hours of lighting in the homes of millions across Asia, Africa, and South America. Consider the effect of the added hours of safe light for a student. A student can now study at night after their daytime duties are completed. This increased productivity will allow for more hours of studying and a better performance in the classroom, all thanks to innovative technology in solar energy.

“A Kenyan Pedal Power Solution for Charging Mobile Phones” via NextBillion

image via ViewChange and NextBillion

NextBillion featured a video on its blog from ViewChange that produces educational and inspirational videos from the developing world. The featured video demonstrates an innovative solution for charging mobile phones in rural, where much of the country lives in energy poverty. Inventor Pascal Katana has created a way to charge phones using energy generated from a bicycle with an easy-to-use smart charger. The charger “costs about 350 Kenyan shillings, which is about USD$4.” Visit the link to watch the video.

“5 Million Bangladeshis Served by Solar Panels – Millions More Coming” by John Laumer via Tree Hugger

According to the evWind blog, the Infrastructure Development Company is funding 993,000 Bangladeshi residential solar units, totally 5 million for the country. The IDC is aiming to power 2.5 Bangladeshi homes by 2014, far exceeding the number in the US.

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