DOCSLIB.ORG

Leveraging Information and Communication Technology for the Base of the Pyramid

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Leveraging Information and Communication Technology for the Base of the Pyramid Leveraging Information and Communication Technology for the Base Of the Pyramid Innovative business models in education, health, DJULFXOWXUHDQG¿QDQFLDOVHUYLFHV A JOINT REPORT BY SPONSORED BY IN COLLABORATION WITH Authors Alexandre de Carvalho, Hystra Network Partner Lucie Klarsfeld, Hystra Project Manager Francois Lepicard, Hystra Network Partner Contributors Alessandra Carozza, AMGlobal Nicolas Chevrollier, TNO Chloe Feinberg, Ashoka Till Jaspert, Claro Partners Andrew Mack, AMGlobal Claire Penicaud, Hystra Bineke Posthumus, TNO Please direct queries about this report to: [email protected] Note: Hystra is the author of this report. Analyses and FRQFOXVLRQVUHSRUWHGKHUHGRQRWQHFHVVDULO\UHÀHFW WKHYLHZVRIWKH¿YHVSRQVRUVVXSSRUWLQJWKLVZRUN 1 Sponsors’ foreword Over the past twenty years, the number of mobile phone subscriptions has risen from 12.4 million to more than 5 billion. The majority of them, equaling 3.8 billion, are in developing countries, where the mobile telecommunications industry has expanded most quickly. Today, even in the most remote areas, people own or use a mobile phone. It is clear that with mobile penetration rates continuously increasing, connectivity – at least for basic voice services – will no longer be a major hurdle in the near future, and development concerns are SURJUHVVLYHO\WXUQLQJWR¿QGLQJZD\VWREHVWOHYHUDJHWKLVFRQQHFWLYLW\IRURWKHUVHUYLFHV Several of the services that can be delivered on telecommunication networks are directly linked to socio-economic development. The focus of this study is the tremendous opportunities that Information and Communication Technology (ICT) offers to provide access to essential services, such as education, healthcare, agro-services RU¿QDQFLDOVHUYLFHVWRXQGHUVHUYHGSRSXODWLRQVHVSHFLDOO\WKRVHDWWKH%DVHRIWKH3\UDPLG %R3 ±LHWKH billions of people living with less than a few dollars per day. In the summer of 2010, in the pursuit of leveraging these opportunities, following discussions initiated by France 7HOHFRP+\VWUDEURXJKWWRJHWKHU¿YHDFWRUVVKDULQJWKHZLOOLQJQHVVWRPDNHWKLVSURPLVHKDSSHQ ƒ AFD (Agence Française de Développement), WKH)UHQFK$LG$JHQF\DQG3URSDUFRLWVSULYDWH¿QDQFLQJDUP ƒ Ericsson, the Swedish world-leading provider of telecommunications infrastructure and services, with business in 180 countries, ƒ France Telecom-Orange, a world’s leading telecommunications operator, headquartered in Paris and serving consumers in 35 countries, including 17 in Africa and the Middle East, ƒ ICCO,D'XWFKQRQSUR¿WRUJDQL]DWLRQSURYLGLQJIXQGLQJDQG¿HOGVXSSRUWWRGHYHORSPHQWSURMHFWVLQHPHUJLQJ countries, and ƒ TNO,WKH'XWFKLQGHSHQGHQWUHVHDUFKRUJDQL]DWLRQZRUNLQJRQLQQRYDWLRQIRUGHYHORSPHQW 7KHVH¿YHVSRQVRUVKDYHHQWUXVWHG+\VWUDWRFRQGXFWWKLVVWXG\RQPRELOHVHUYLFHVDQGEXVLQHVVPRGHOVIRU the Base of the Pyramid (BoP), in collaboration with Ashoka, the international network of social entrepreneurs, DQG712DQGZLWKWKHVXSSRUWRI$0*DFRQVXOWLQJ¿UPH[SHUWRQ,&7IRU'HYHORSPHQW ,&7' SURMHFWV The sponsors of this study believe that independent social entrepreneurs or intrapreneurs (who initiated these projects from the inside of large companies) are a key source of inspiration, and that looking at their projects in depth will allow to identify promising business models and understand the barriers to scale that many projects are facing in this sector. After reviewing more than 280 projects, this study has grouped the diversity of models seen into 4 different clusters: ƒ models in which end-users access the technology themselves, ƒ models leveraging local agents as intermediaries between the technology and end-users, ƒ innovative initiatives leveraging the power of the “crowds” in a two-way exchange between the developed and GHYHORSLQJZRUOGVWKURXJKVRFDOOHGFURZGVRXUFLQJRUFURZGIXQGLQJDQG¿QDOO\ ƒ ¿QDQFLDOVHUYLFHVUHTXLULQJDUREXVWVHFXUHGSODWIRUPDFFHVVHGHLWKHUE\HQGXVHUVRULQWHUPHGLDU\DJHQWV or both. 2 Within these clusters, 16 initiatives of the most ground-breaking business models set up to date, have been DQDO\]HGWKURXJK¿HOGYLVLWVLQWHUYLHZVDQGH[SHULHQFHVKDULQJGXULQJZRUNVKRSV7KHVHPRGHOVDUHSUHVHQWHG as case studies in this report, highlighting that promising business models can allow the sustainable large-scale development of ICT-based services for the poorest. A conclusion from this work is that entrepreneurship is key to starting successful services, while collaboration and the construction of an ecosystem offering a range of services are key to scaling. AFD-Proparco, Ericsson, France Telecom-Orange, ICCO and TNO are and will continue fostering both entrepreneurship and collaboration, to support the development of affordable services aimed for the poorest of the population. This is the reason why we have decided to make the results of this report public. :HKRSH\RXZLOO¿QGYDOXDEOHLQVLJKWVWRPRYHIRUZDUGZLWKXVLQPXOWLSO\LQJWKHLPSDFWRIPDUNHWEDVHG approaches leveraging ICT for development. Sincerely, Caroline Cornu, Executive Director, External Relations and Partnerships, AFD-Proparco Elaine Weidman-Grunewald, Vice President, Sustainability and Corporate Responsibility, and Arun Bhikshesvaran,9LFH3UHVLGHQW0DUNHWLQJDQG&KLHI0DUNHWLQJ2I¿FLHU(ULFVVRQ Denis Guibard, Vice-President, Sustainable Development, Products & Services, France Telecom-Orange Machteld Ooyens, Head of the Policy and Development Department, ICCO Nicolas Chevrollier, Deputy programme manager “Innovation for Development”, TNO 3 Introduction The developing world is on the brink of entering the Internet era. And it will be mobile based. This breakthrough is hoped to transform lives even more than it has for the developed world over the past 15 years. In our previous and on-going Hystra-Ashoka joint work we have looked at improving a series of essential services for the Base of the Pyramid where providing access –to Energy, Housing, Water, etc. – was the end result. In this case, given its potential transformational power, we decided to look at a means – ICT – rather than at an end as such. We decided to apply our methodology in looking at how ICT could actually foster a quantum leap of evolution in servicing development. We selected 4 areas, essential for developing countries, as well as potentially highly responsive to a strategic use of ICT: Education, Health, Agriculture/Rural Development and Financial Services. 7KHVHDUHDVKDYHLQGHHGJHQHUDWHGKXQGUHGVRILQLWLDWLYHVIURPGLIIHUHQWRUJDQL]DWLRQVWU\LQJWROHYHUDJH,&7 for social impact. Pioneers are showing the way, following the tremendous success from mobile operators in bringing connectivity to so many. However, very few of them have had success in reaching scale, despite the special adequacy of technology for VFDOLQJXS,WLVLQWKHKRSHRI¿QGLQJVROXWLRQVWRWKDWOLPLWDWLRQWKDWZHXQGHUWRRNWRLGHQWLI\WKHVROXWLRQVWKDWZRUN best, understand what hinders their growth and craft strategies that can help bring these innovations to scale. We have been fortunate to assemble a consortium of key players representative of a variety of stakeholders in the ¿HOGRI7HFKQRORJ\DQG'HYHORSPHQWIURPWKHSXEOLFFLWL]HQDQGSULYDWHVHFWRUV Integrating their different perspectives has been critical in shaping this report. Scaling up these business PRGHOLQQRYDWLRQVZLOOQRWRQO\JURZDIHZRUJDQL]DWLRQVLWZLOOFUHDWHQHZLQGXVWULHVDQGEULQJNQRZOHGJH and services to which the poorest never had access before. For this to happen, all types of players must take part in the effort required: public authorities need to craft and implement effective regulations that integrate the possibilities of technologies, local business entrepreneurs need to invest their money and energy in innovative products, strategic philanthropists and development agencies need to support industry building and awareness and education efforts, and large corporations need to innovate new business models or support existing ones to scale. None of them can succeed on their own. This is a time for innovation and collaboration. We hope this report will contribute to making this happen. François Lepicard and Alexandre de Carvalho, Hystra Valeria Budinich, Ashoka 5 Acknowledgements The authors would like to thank the social entrepreneurs who shared their innovative work, the intrepreneurs within corporations who carved the space for something new, and the experts who contributed insights over the course of this investigation, in particular: Argawal Tarun, VP and Head of Channel Empowerment and Management, FINO Ayala Jim, Network Partner, Hystra Baird Andrew, Senior Economic Growth Specialist, International Development, Agriculture Specialist, RTI Bartlett Sarah, Director, Esoko Ghana Barua Jewel, Commercial Division of GrameenPhone, HealthLine Blaschke Sean, Technology for Development Coordination Unit, UNICEF Uganda Boyera Stéphane, Lead Program Manager of the Web Foundation Cantor Eric, Director of Grameen Foundation AppLab Chamberlain Sara, Head of Interactive, BBC Janala Choudhary Amrit, Manager, Rural Marketing Distribution, eChoupal Davies Mark, Founder and CEO, Esoko Dhabale Vilas, Sanchalak, eChoupal Deotale Kissan, Farmer and eChoupal user Eagle Nathan, co-Founder and CEO, txteagle Garudachar Srinivas, Director, Grameen-Intel Social Business & Advisor, eKutir *RJR$VKLÀ Founder and CEO, Sproxil Gupta Rishi, CFO, FINO Hammond Al, Senior Entrepreneur, Ashoka, and Founder and Executive Chairman, HealthPoint Services Dr Karmakar KG, Managing Director, NABARD (National Bank for Agriculture and Rural Development of India) Locke Chris, Managing Director, GSMA Development Fund Manansala Jojo, General Manager, Hybrid Social Solutions Inc. Mehra Amit, Founder and Managing Director, RML Mishra Satyan, Managing Director, Drishtee Nair
Load more

Recommended publications
  • Rapportudkast
    Bilag 8 - Produktanalyser I det følgende præsenteres de 20 produktanalyser for oplysningsaktiviteter, der har modtaget mid- ler fra Udenrigsministeriet indenfor tre finansieringsvinduer: 1. Danidas Oplysningsbevilling 2. NGO’ernes projektrelaterede oplysning 3. Udenrigsministeriets eget oplysningsarbejde Produktanalyserne er grupperet under de forskellige finansieringsvinduer. For hvert oplysnings- produkt foreligger en beskrivelse og en analyse - basisoplysninger og produktanalyse. Basisoplysningerne (organisation, titel, aktivitet, budget etc.) stammer fra producenten selv. Eva- lueringsteamet har efterfølgende tilføjet evt. yderligere oplysninger i kursiv. Produktanalysen (relevans, effektivitet, ressourceforbrug) er udfyldt af evalueringsteamet på bag- grund af de i skemaet anførte data samt yderligere dataindsamling (f.eks. interviewdata). For Udenrigsministeriets eget oplysningsarbejde fremgår i nogle tilfælde ligeledes data fra eksi- sterende effektundersøgelser, som er medtaget for at supplere evalueringens dataindsamling. Oplysningsbevillingen BASISOPLYSNINGER OG PRODUKTANALYSE BASISOPLYSNINGER Bevillingstype Oplysningsbevillingen Organisation/ansøger NN Producent/tilrettelægger (hvem har produce- NN ret, gennemført aktiviteten) Titel Bongo Superstars Tema Ungdomskulturer, hiphop, identitet, musik, drømme. Formål (beskrevet af producenten) Filmens formål er at følge en gruppe unge rappere fra Tanzania for herigennem at vække identifikation hos beskueren (vise et andet billede af Afrika end nød og fattigdom) Indhold (kort beskrivelse
    [Show full text]
  • SPEAKER PROFILES Official Opening of Rwanda Sustainable Energy
    SPEAKER PROFILES Official Opening of Rwanda Sustainable Energy Week 2018 Amb. Claver Gatete, Minister of Infrastructure Rwanda Ministry of Infrastructure Biography Amb. Claver Gatete has been the Minister of Infrastructure since April 2018. Prior to this appointment, he served as Minister of Finance and Economic Planning starting in February 2013. He had previously served as the Governor of the National Bank of Rwanda (2011 to 2013). Amb. Gatete also served as Rwanda’s Ambassador to the Website: United Kingdom, Ireland, and Iceland from November 2005 to December 2009. He is www.mininfra.gov.rw also currently a member of the Presidential Advisory Council. In addition, Amb. Gatete’s previous posts include Personal Representative of the President on NEPAD Steering Committee, and National Economist at the Rwanda United Nations Development Programme (UNDP). Amb. Gatete has held various positions on Key Boards of Directors including: Chairman of Rwanda Revenue Authority, Chairman of School of Finance and Banking; member of the Board of the National Bank of Rwanda; Chairman of National Privatization Technical Committee; and Vice-Chairman of Community Development Fund. Amb. Gatete holds a Masters in Agricultural Economics from the University of British Columbia, Vancouver, B.C., Canada (1993) and an undergraduate degree from the same University (1991). About the Rwanda Ministry of Infrastructure The MININFRA is a department of the Government of Rwanda. It is responsible for infrastructure policy and development throughout the country. The Ministry's mission is to ensure the sustainable development of infrastructure and to contribute to economic growth with a view to enhancing the quality of life of the population.
    [Show full text]
  • How to Design Online Models for Micro-Lending in Developing Countries? Making Sense to MYC4 in Africa Eric Van Heck Erasmus University, [email protected]
    View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by AIS Electronic Library (AISeL) Association for Information Systems AIS Electronic Library (AISeL) International Conference on Information Resources CONF-IRM 2013 Proceedings Management (CONF-IRM) 5-2013 How to Design Online Models for Micro-lending in Developing Countries? Making Sense to MYC4 in Africa Eric van Heck Erasmus University, [email protected] Marlei Pozzebon HEC Montréal, [email protected] Follow this and additional works at: http://aisel.aisnet.org/confirm2013 Recommended Citation Heck, Eric van and Pozzebon, Marlei, "How to Design Online Models for Micro-lending in Developing Countries? Making Sense to MYC4 in Africa" (2013). CONF-IRM 2013 Proceedings. 25. http://aisel.aisnet.org/confirm2013/25 This material is brought to you by the International Conference on Information Resources Management (CONF-IRM) at AIS Electronic Library (AISeL). It has been accepted for inclusion in CONF-IRM 2013 Proceedings by an authorized administrator of AIS Electronic Library (AISeL). For more information, please contact [email protected]. How to Design Online Models for Micro-lending in Developing Countries? Making Sense to MYC4 in Africa Eric van Heck Erasmus University [email protected] Marlei Pozzebon HEC Montréal [email protected] Abstract This article explores a micro-lending platform linking investors mostly located in developed countries and micro-entrepreneurs located in Africa. At the heart of this social and economic innovation is the online auction model, a concept that has been intensively investigated and used in developed countries. However, little knowledge exists about how these new models are used and implemented in developing countries, and about how existing theories are able to explain such an emerging innovative phenomenon.
    [Show full text]
  • Market Survey on Possible Co-Operation with Finance Institutions for Energy Financing in Kenya, Uganda and Tanzania
    Market Survey on Possible Co-operation with Finance Institutions for Energy Financing in Kenya, Uganda and Tanzania February 2010 Phyllis Kariuki Kavita Rai Other Contributors: Felistas Coutinho, Anna Mulalo and Jon Gore (Tanzania) Hidde Bekaan and Andrew Obara (Uganda) Table of Contents Acronyms.................................................................................................................................................... 3 Executive Summary ................................................................................................................................ 4 1 Introduction..................................................................................................................................... 5 1.1 Study Outputs.................................................................................................................................................5 1.2 Financing Models .........................................................................................................................................5 2 Overview and access of the financial sector......................................................................... 6 2.1 The Financial Sectors .................................................................................................................................6 2.2 Overall Access to Financial Sector by Population.........................................................................8 2.3 Rural versus urban access to Financial Access...............................................................................9
    [Show full text]
  • Development Resources Beyond the Paris Declaration Final
    Development Resources Beyond the Current Reach of the Paris Declaration Evaluation of the Paris Declaration e-ISBN English: 978-87-7605-423-6 © Danish Institute for International Studies Suggested citation: Prada, F.; Casabonne, U.; Bezanson, K. Supplementary study on “Development resources beyond the current reach of the Paris Declaration”, Copenhagen, October 2010. Photocopies of all or part of this publication may be made providing the source is acknowledged. This report represents the views of the authors only. They are not necessarily the views of the participating coun- tries and agencies. Graphic design: ph7 kommunikation. www.ph7.dk The report can be downloaded from www.oecd.org/dac/evaluationnetwork/pde Supplementary study on “Development resources beyond the current reach of the Paris Declaration” Submitted by: FORO Nacional Internacional* September 2010 • This report has been prepared by Fernando Prada, Ursula Casabonne and Keith Bezanson, with the collaboration of Nestor Aquiño, Fernando Romero, Mario Bazán and Carlos Eduardo Aramburú. Francisco Sagasti provided general advice and suggestions. PREFACE This independent study was commissioned by the Secretariat for the Evaluation of the Paris Declaration as a background contribution to the work of the second phase and the Synthesis of the Evaluation. Comments on draft versions were offered by the Evaluation Core Team and the Secretariat, but the final contents remain the responsibility of the authors and do not necessarily represent the views of the Secretariat, the Core Team
    [Show full text]
  • Crowdfunding: Genesis and Comprehensive Review of Its State in Africa
    Open Journal of Business and Management, 2021, 9, 557-585 https://www.scirp.org/journal/ojbm ISSN Online: 2329-3292 ISSN Print: 2329-3284 Crowdfunding: Genesis and Comprehensive Review of Its State in Africa Oloutchègoun Josias Lawrence Adjakou School of Economics and Management, Chongqing Jiaotong University, Chongqing, China How to cite this paper: Adjakou, O. J. L. Abstract (2021). Crowdfunding: Genesis and Com- prehensive Review of Its State in Africa. In developing countries, the topic of crowdfunding is still in its infancy be- Open Journal of Business and Management, cause Europe; Asia and North America have monopolized almost all the re- 9, 557-585. searchers’ attention. Nevertheless, the number of scholars stressing the fact https://doi.org/10.4236/ojbm.2021.92031 that investigations should be conducted on the economic impact of crowd- Received: December 23, 2020 funding in developing countries where financial systems are still struggling is Accepted: March 13, 2021 incredibly increasing. But before getting to that point, as Gajda and Walton Published: March 16, 2021 stated, “An analysis of primary and secondary data; in-depth assessment of Copyright © 2021 by author(s) and live projects and statistical analysis could provide more insight (…) how to Scientific Research Publishing Inc. make crowdfunding more accessible to entrepreneurs in the developing This work is licensed under the Creative world” (Gajda & Walton, 2013: p. iii). Drawing on this and the fact that none Commons Attribution International License (CC BY 4.0). of the extant literature about crowdfunding in Africa has provided statistical http://creativecommons.org/licenses/by/4.0/ assessment of existing platforms on the continent; how much crowdfunding Open Access has been adopted and sustainably implemented across various region on the continent, this paper’s main goal is to depict and describe the current situa- tion of crowdfunding in Africa.
    [Show full text]
  • The Busines Model.Indd
    THE MYC4 BUSINESS MODEL CASE BUSINESS: FLORENCE NANDAWULAU IN UGANDA HAS LOANED EUR 250 THROUGH FED. SHE MAKES 50 FIREWOOD COOKERS A DAY AND SELLS THEM FOR EUR 0.25 A PIECE. By the end of 2008, MYC4 aims to reach 25,000 investors and facilitate investments of EUR 12.5 million in more than 5,000 African businesses. The MYC4 business model The MYC4 business model has been developed to tackle the problem that fi nance is available for large and micro-businesses in Africa, but limited for the many small and medium sized businesses. African macro-businesses are funded with international commercial fi nance by large banks, whereas micro-businesses are supported by donor money through a growing presence of microfi nance opportunities. Experience, however, shows that the wealth of nations is measured by the number of thriving small enterprises they possess, not by the giants. This is why MYC4 is determined to end poverty in Africa through growth amongst small and medium sized businesses deprived of funding from traditional fi nancing institutions or faced with excessive interest rates from local money lenders. Today, MYC4 is operating at the top of the microfi nance market (loans > EUR100) and at the bottom of the meso-segment, medium sized and small businesses (loans < EUR 100,000) with loans being offered not to the poorest of the poor but to entrepreneurs who already have a small business or company but lack access to fi nance. In the future, loans will also be offered to a broader section of the meso-segment.
    [Show full text]
  • “An Analysis of European Online Micro-Lending Websites”
    “An analysis of European online micro-lending websites” AUTHORS Arvind Ashta Djamchid Assadi ARTICLE INFO Arvind Ashta and Djamchid Assadi (2010). An analysis of European online micro-lending websites. Innovative Marketing , 6(2) RELEASED ON Wednesday, 09 June 2010 JOURNAL "Innovative Marketing " FOUNDER LLC “Consulting Publishing Company “Business Perspectives” NUMBER OF REFERENCES NUMBER OF FIGURES NUMBER OF TABLES 0 0 0 © The author(s) 2021. This publication is an open access article. businessperspectives.org Innovative Marketing, Volume 6, Issue 2, 2010 Arvind Ashta (France), Djamchid Assadi (France) An analysis of European online micro-lending websites Abstract With the development of web 2.0, a new kind of lending is taking place on the internet, termed peer to peer lending or social lending. In Europe, this includes commercial lending websites such as Zopa, smava, boober, Kokos and Monetto. At the same time, following the lead of Kiva in the US, European microcredit web platforms are coming up including MyC4 and Babyloan in Europe. The paper examines how the legal design of the online websites differs from the micro- credit websites in Europe and how this impacts social performance issues of the different models. Since the population size of these websites is rather small, we use a comparative case study approach. The case study approach is the most adapted to studying small samples in more detail. The case studies are based on exploring of web- sites and review of academic literature and press reports. We find that although web2.0 permits platform models, most sites (commercial or micro-lending) have retained inter- mediary roles and have not permitted direct peer-to-peer contact.
    [Show full text]
  • Peer-To-Peer Financing for Development: Regulating the Intermediaries
    \\server05\productn\N\NYI\42-4\NYI406.txt unknown Seq: 1 8-SEP-10 15:26 PEER-TO-PEER FINANCING FOR DEVELOPMENT: REGULATING THE INTERMEDIARIES KEVIN E. DAVIS* ANNA GELPERN** I. INTRODUCTION .................................. 1210 R II. OLD AND NEW CATEGORIES OF INTERNATIONAL FINANCE ......................................... 1218 R A. What Do Charities Do? ....................... 1218 R B. What Do Financial Institutions Do? ............ 1219 R C. The New Peer-to-Peer Intermediaries............. 1222 R III. Regulatory concerns ............................ 1224 R A. Interests of Donors, Depositors, and Investors .... 1226 R B. Interests of the Public in the Home State ........ 1229 R C. Interests of Recipients of Funds................. 1231 R D. Interests of the Host State...................... 1232 R E. Systemic Concerns ............................ 1236 R IV. REGULATORY RESPONSES: WHERE THE EXISTING FRAMEWORKS FALL SHORT ........................ 1238 R A. Regulation of Charities ........................ 1238 R B. Regulation of Financial Institutions ............ 1245 R C. Private Ordering ............................. 1255 R V. Policy Implications ............................. 1257 R A. Subject All Actors that Promise Financial Returns, Regardless of Charitable Status or Level of Returns, to Regulation as Financial Institutions . 1258 R B. Reform Charities Laws to Permit International Regulatory Competition........................ 1261 R * Beller Family Professor of Business Law, New York University School of Law. ** Associate Professor
    [Show full text]
  • Peer-To-Peer Lending and Beyond
    Is Financial Democracy a Click Away? Peer-to-Peer Lending and Beyond Moderator: Thomas Debass (USAID/MD) Presenter: Jennifer Powers (EA Consultants) Commentators: Harvey Grasty (MicroPlace) Steve Ma (Investors Without Borders) Microfinance Learning and Innovations After Hours Seminar October 20, 2008 Why Talk about Peer-to-Peer Lending? P2P lending is not a new concept (family and friends, ROSCAs) Internet has launched P2P lending to a new dimension, expanding communities beyond geographic boundaries & borrowing social networking ideas to create trust between strangers – Zopa UK first “domestic” P2P platform launched March 2005 (for-profit) – Kiva first platform geared towards microfinance (non-profit) Ultimate goal: link people with excess capital to those in need of capital, generally circumventing traditional banks, yet tapping into “retail” investors/lenders ByBy cutting cutting out out the the middle middle man man in in financial financial intermediation, intermediation, traditionaltraditional banks, banks, can can P2P P2P lending lending platforms platforms help help democratize democratize the the creditcredit markets markets for for lenders lenders and and borrowers? borrowers? Overview of P2P Lending Market Developed Economies Developing Economies Kiva launched in November 2005 Zopa UK launched in March 2005 5 online platforms launched: Now over 20 P2P platforms in 14 dhanaX (India), Kiva (Global), countries MicroPlace (Global), MyC4 Another 10 are expected to be (Africa), and RangDe (India) launched soon 2 more expected
    [Show full text]
  • Person-To-Person Lending: Is Financial Democracy a Click Away?
    PERSON-TO-PERSON LENDING IS FINANCIAL DEMOCRACY A CLICK AWAY? Prepared under AMAP/Financial Services, Knowledge Generation Task Order microREPORT #130 September 2008 This publication was produced for review by the United States Agency for International Development. PERSON-TO-PERSON LENDING IS FINANCIAL DEMOCRACY A CLICK AWAY? Prepared under AMAP/Financial Services, Knowledge Generation Task Order microREPORT #130 DISCLAIMER The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. AKNOWLEDGEMENTS This report was prepared and compiled by Ea Consultants and Abt Associates under the Accelerated Microenterprise Advancement Project-Financial Services Component (AMAP-FS) Knowledge Generation Task Order. It was authored by Jennifer Powers, Barbara Magnoni and Sarah Knapp of EA Consultants. The authors would like to thank the Management of Calvert Foundation, dhanaX, Kiva, MicroPlace, MyC4, Prosper, and RangDe, for taking the time to speak candidly with us about their institutions, their industry and some of the challenges and opportunities they face. The authors also acknowledge the contributions of the microfinance institutions benefiting from these sites including: International Microcredit Organization (IMON), Norwegian Microcredit LLC (Normicro) and YOSEFO, who allowed themselves to be interviewed for this report. Finally, the authors would like to acknowledge the guidance and support of Thomas DeBass, USAID. CONTENTS I.
    [Show full text]
  • Impact Investment in Africa: Trends, Constraints and Opportunities
    Impact Investment in Africa: Trends, Constraints and Opportunities COVER IMAGES: ©WORLD BANK • classroom/Dominic Chavez • water/Arne Hoel Hoel water/Arne • Chavez classroom/Dominic • BANK ©WORLD IMAGES: COVER About this Report In 2013, the United Nations Development Programme (UNDP), through its regional private sector unit African Facility for Inclusive Markets (AFIM), produced a flagship report on “Realizing Africa’s Wealth – Building Inclusive Businesses for Shared Prosperity”. This flagship report looked specifically at inclusive businesses in sub-Saharan Africa and introduced the ‘Inclusive Business Sector ecosystem Diamond’ framework. One of the key findings of this report was the need for impact investment – the allocation of capital into enterprises, funds and/or organizations with the expectation of a financial return and a positive environmental and/or social impact – to spur the growth of inclusive businesses in sub-Saharan Africa. To understand the potential for impact investment in Africa, this ‘Impact Investment in Africa: Trends, Constraints and Opportunities’ report (herein after referred to as “this report”), reviews the current overall state of impact investing in Africa, highlighting key challenges to the sector and proposes strategies to increase the flows and quality of impact investment on the continent, especially those that are African led and mobilized. This report draws on the following streams of data: Desk-based Literature Review: This report draws primarily on findings from literature review of published research on impact investment in Africa and across the globe. Interview Consultations: Thirty-six actors and stakeholders including investors, intermediaries and sustainable social enterprise representatives in the African and global impact investment sector were consulted between September and November 2014.
    [Show full text]