Safaricom’s Dilemma with Andrea Bohnstedt & Nyagaka Ongeri

AppDate Yourself

I have in the past one year written 3 articles (Article 1, Article 2 & Article 3) arguing why Mobile Operators should have entered the App space a long time ago. This is essentially because Kenya has proved itself to be uniquely innovative in developing mobile applications/solutions that actually work and generate revenue.

So when Zain lowered its call rates to all Kenyan networks it opened the pandora box placing mobile applications and data at the center of competition in the Kenyan Mobile Space.

Join Andrea Bohnstedt and Nyagaka Ongeri in this very insightful dicussion about Mobile Application, Data and Revenue Generation.

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I would only add that individuals and companies need to find a way to mesh Mobile Service (like SMS) and Web Applications to allow Content Creation that would ultimately create advertising space on the Kenyan Internet.

That is what we at Whive.com have done.

Have a look at our live applications which all are all partly SMS Based.

Consensus has been that Safaricom has largely behaved like a big bully “stealing” ideas from Kenyan developers or behaving in a manner that is detrimental to the Kenyan Mobile ecosystem.

Whether the above claim is true or false momentum is clearly on Zain’s  side with almost everyones attention including Developers shifting towards  it.

It may be true that middle aged voice consumers may have in the past been the main revenue source but the shift towards data consumption by Kenya’s youth with drive profits in the future.

The Mobile Operator which convinces us to share revenue by giving them our Mobile Apps and sharing advertising revenues will win the war.

This is a HUGE opportunity for everyone especially if we let market forces run their own course…

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Breaking News: Safaricom moves towards an App Store

Safaricom Inabamba

Safaricom has finally decided to listen to Kenyan developers (including myself) who have been shouting ourselves hoarse about the need for them to begin moving towards coordinating or collecting Kenya’s vast developer talent into one central location or platform.

They have done this by partnering with Strathmore University which is by far the leading institution in terms of training software and web developers. I know this because I was lucky enough to go there and get good training in this domain.

I am also one of the few who has been calling for this exact move (see here and here) not because I am the seer of Kariamandu but also because I have about 3 Apps if given the right environment and access to Safaricom’s data can make me move one step further from the poverty line.

In addition Safaricom cannot afford to hedge its future on voice it needs to move aggressively and decisively into the App cloud space where it can perpetually make the billions it so cleverly makes going forward.

Those of you who are now bubbling with excitement about this move can develop your ideas with us at http://www.spacekenya.com … We sign NDA’s to protect your ideas from the ever present hawks…

Safaricom has also partnered with Equity to create a new Banking Cloud App called Mkesho.  If only Safaricom was as regional as Zain  Kenyan applications would have a access to a larger market.

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Electronic Money Wars: Zain vs Safaricom

Safaricom CEO Michael Joseph

Safaricom CEO Michael Joseph

Zain has recently launched international transfers (Zap Money) similar to western union that allows individuals to sent money from international accounts to local mobile phones in Kenya. Though this technology is a prospective game changer for e-commerce in East Africa, it remains to be seen whether mobile phone users will be ready to switch to Zap from the more popular MPESA.

However this is also bad news for money exchange websites such as mamamikes which been for years been acting as intermediaries for Zain/Celtel airtime as they are like to loss significant amounts to the ZAP service.

However local ecommerce sites such as BabaWatoto should be able to leverage their epayments using this system and increase the number of exports.

Safaricom which succesfully introduced Mobile money in Africa will have to step up their game and allow access to the API for development of similar intermediary tools or alternatively start the international money transfer service.

By restricting access of their API to public developers they blocked young and geeky Kenyan programmers from rolling out a myriad of applications that can increase competition and therefore create more jobs and a new mobile economy.

This policy may in the end make the difference in the competitive war between Zap and Safaricom.

Let the games begin…

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Tulipe! An innovative online/mobile payment gateway.

Kenneth Ngetha

Kenneth Ngetha

I rarely excited about start ups in Kenya because like many of mine they dont seem to get enough support from industry players and government. However just when you think innovation is dead someone somewhere unleashes a stunning and brilliant idea. This someone is Kenneth Ngetha 22, a 4th year student at the prestigious Strathmore University(i went there too!!!) in Nairobi, who has come up with an online gateway for making payment transfers to Kenya.

The system suitably named TULIPE solves the basic problem which is that in East Africa, (and Africa in general); E-Commerce Payments on the web are not well developed because of a low penetration of banking services (which means credit cards are not sufficient). However, there have been developments in the Mobile Money sphere and it serves the long tail of the unbanked. Tulipe aims to use this Mobile Money & Existing Bank accounts for online payments, as is the case with credit cards.

This brilliant idea is modelled on the US based PAYPAL.com which currently transacts billions of dollars every year in this way. Tulipe still on beta release has caught the eye of Kenyan investors who see in Tulipe a business model and solution that will help reduce the cost of transfering money to and from Kenya. This cost mostly brought about by thefts, delays and official corruption have been a major obstacle to doing business in Kenya.

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African Internet and Mobile Growth

Mpesa Banking

Mpesa Banking

Watch Mark Shuttleworth, President of the Ubuntu Foundation,and June Arunga, Open Quest Media, speak about opportunities and challenges business and individuals face in developing parts of the world.This a lovely talk of African Prospects with historical occurences being put into context. June Arunga has travelled Africa from Cairo to Capetown and is an expert in the Mobile Phone revolution in Kenya. Kenyans are using mobile phones to expand their economic space and conduct business. She argues that the country needs to develop address systems to allow people to conduct business in a transparent manner. I also remember reading that issuing of title deeds to squatters would be an efficient way of distributing capital and wealth. Anyway here are the videos.

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DLD Internet and Mobile Entreprenuership Conference

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Stocks to Watch this week

My friends,  I discovered some really nice tips on Smartbiz which i thought i should share with you. I really think Safaricom is still the best Stock to acquire as the company has a lot of growth prospects. Anyways without further ado here are the tips. What do you think?

The Nairobi Stock Exchange showed signs of recovery from a prolonged bear run (persistent fall in share prices). Most counters were up on the back of renewed investor confidence in the market, but this was short-lived as prices went on the low towards the end of the week.

Here are some stocks to watch according to analysts at Emerging Africa Capital, the Nairobi-based investment consulting company:

Access-Kenya: The counter inched upwards with demand rising, but at some point the market having no supply. The counter is a good buy for the short to medium investors.

Total: With the company having successfully bided for the assets of a rival marketer, expect action on this counter as punters take up positions. Good stock for speculative buyers.

KCB: The counter continued dominating the market with the volumes moving up. The price is up but still discounted. This is a good buy for the medium to long-term investors.

Safaricom: The mobile phone company has announced half year results, with profit before tax up a marginal 2.2%, which have generated interest on this counter.

Equity Bank: The counter remains a value stock owing to the current low price. With sound fundamentals, the counter is expected to continue drawing savvy investors, especially for sort-term gains as this has been a highly speculative stock.

Read more at Whive.com http://newwhive.whive.com/poll.php?user=KingBee&poll_id=46

Read more at Smartbizafrica.com http://www.smartbizafrica.com/financial.php

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