Here's an interesting story about how a progressive social mechanism called 'cell phones' is helping the poor in Africa.
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Cell phone use changes life in AfricaRODRIQUE NGOWI
Associated Press
NAIROBI, Kenya - Amina Harun, a 45-year-old farmer, used to traipse around for hours looking for a working pay phone on which to call the markets and find the best prices for her fruit. Then cell phones changed her life.
"We can easily link up with customers, brokers and the market," she says, sitting between two piles of watermelons at Wakulima Market in Kenya's capital.
Harun is one of a rapidly swelling army of wired-up Africans - an estimated 100 million of the continent's 906 million people. Another is Omar Abdulla Saidi, phoning in from his sailboat on the Zanzibar coast looking for the port that will give him the biggest profit on his freshly caught red snapper, tuna and shellfish.
Then there are South Africans and Kenyans slinging cell phones round the necks of elephants to track them through bush and jungle. And there's Beatrice Enyonam, a cosmetics vendor in Togo, keeping in touch with her husband by cell phone when he's traveling in the West African interior.
As cell-phone relay towers sprout on the slopes of Mount Kilimanjaro and the Serengeti plain, providers are racing to keep up with their exploding market.
The numbers are staggering.
Cell phones made up 74.6 percent of all African phone subscriptions last year, says the U.N.'s International Telecommunication Union. Cell phone subscriptions jumped 67 percent south of the Sahara in 2004, compared with 10 percent in cell-phone-saturated Western Europe, according to Mo Ibrahim, the Sudanese who chairs Celtel, a leading African provider.
An industry that barely existed 10 years ago is now worth $25 billion, he says. Prepaid air minutes are the preferred means of usage and have created their own $2 billion-a-year industry of small-time vendors, the Celtel chief says. Air minutes have even become a form of currency, transactable from phone to phone by text message, he says.
This is particularly useful in Africa, where transferring small amounts of money through banks is costly.
"We are developing unique ways to use the phone, which has not been done anywhere else," says South African Michael Joseph, chief executive officer of Safaricom, one of two service providers in Kenya. For an impoverished continent, low-cost phones make "a perfect fit."
And cash-strapped governments which have had to give up their monopoly on land lines are looking to reap huge revenues from license fees, customs duties and taxes on calls.
"We all misread the market," Joseph said.
The mistake, providers say, was to make plans based on GDP figures, which ignore the strong informal economy, and to assume that because land line use was low, little demand for phones existed.
The real reason for weak demand was that land lines were expensive, subscribers had to wait for months to get hooked up, and the lines often went down because of poor maintenance, floods and theft of copper cables.Cell phones slice through all those obstacles and provide African solutions to African problems.
So it appears that once those poor Africans find a way to go around the government corruption, a lot of economic progress is made. Maybe we should give them more microloans.