Kenya has earned the nickname “Silicon Savannah” because of the country’s impressive technological development in payments.
Kenya has become an emerging market in terms of its financial innovations. Kenya introduced the mobile money transfer platform M-Pesa to the world, which has since ignited a series of young people in the country to come forward with new ideas.
According to the BBC News, there are several tech hubs and innovators located in Nairobi. Kenya is making its mark in technology and the finance industry as people continue to display forward thinking.
Over 17 million consumers in Kenya are registered for M-Pesa transfers, and are rushing to buy their own mobile phone. However, smartphones are still reasonably new on the market, and many people cannot afford them. Mobile money companies have made sure not to isolate these consumers, and created applications that can be integrated on simple, text-based phones.
More and more entrepreneurs in Kenya are showing similar assertiveness. They are using consumer trend constraints, such as smartphone expenses, to their advantage instead of allowing the trends to limit growth. The article cites that a large number of Kenyans are leaving to study at academic institutions outside of the country. After education, former residents are returning to Kenya to employ their newly learned tools to start businesses and find new opportunities.
The mobile money takeoff had global impact and helped to improve other developing nations. Startups and entrepreneurs said the movement inspires them. Additionally, businesses and consumers from all over the world have started to think about improving financial inclusion in a different light. Consumers at the bottom of the pyramid, who were neglected by financial institutions for decades, are finally being addressed.
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However, BBC News reported that companies must think about African and emerging consumers’ needs from a different perspective than the consumers living in the Western world. Innovation and technology must be built from the ground-up since these consumer trends have not yet been accessed. Innovation cannot be highly influenced by fads and trends in the market, as it is in Europe and the USA.
Kenya is inundated with technological ideas and ambitious entrepreneurs. Stakeholders are all searching for new solutions to address the unique issues of low income and resources in the African market. The innovation often beings with domestic-intentions, but as we have seen with M-Pesa, the impact can be significant on an international scale.
To read the full BBC News story click here.
