Archive for May, 2007

Zimbabwe Still Moving Forward?

Africa is truly a continent of insoluble contradictions. Zimbabwe's largest mobile operator, Econet has introduced 3G (Third Generation) cellular service to the capital - Harare. So far there are only 2 other countries offering the service on the continent, South Africa and Mauritius. Full trials of the 3G network start next month (June) and will allow customers to watch video on their cell phones.

In other news, Zimbabwe is projected to have a 6000 percent inflation by the end of 2008. It looks like Mugabe cannot and will not stop the tide of capitalism. Econet, founded by Strive Masiyiwa is also planning a launch in Auckland, New Zealand.

Africa, Environmentalists & Renewable Energy

I think I’ve just about had it with these environmentalists and would love to tell them to stick their hypocritical message up their rear. Ask them to give up their cars and heated homes and you’ll be all alone in the room. Global Warming is the new Con - if you open your eyes, you’ll see that this is driven purely by marketing. I actually gave ExxonMobil credit for not pretending to be a ‘Green’ company like BP or Shell - the main purveyors of oil, the root of all our ‘problems’. Pumping gas at a BP, I noticed their new tagline, ‘Beyond Petroleum’ — ??? Ha! Give me a break.

We (Africa) have arrived at the table very late in the game. Developed countries are almost done sucking fossil fuels out of the ground - the very substance required to support the quality of life everyone craves (including environmentalists). As China & India fight for the remaining crumbs to satisfy their explosive economies, I can’t help but wonder where this leaves us. The last major oil reserves have already been discovered, and the remaining options can only be compared to pulling teeth.

  • Solar Power
    Extremely clean, and there’s plenty of it on the continent. Unfortunately technology hasn’t advanced enough for us to harness it efficiently. Right now, this form of energy is just a romantic dream that is still out of reach.

  • Hydroelectric Power
    Has been extremely reliable for years. Also, it requires large dams that displace people and destroy ecosystems. Ultimately our future lies here. Africa has taken advantage of only 7% of its hydroelectric potential compared to 75% in Europe. It is however going to require massive dams that translate to massive investment on a still volatile continent.

  • Methane Gas (NEW!!)
    For a moment there I was convinced this was the Silver Bullet solution to our problems, a green almost endless supply of energy. As stated in this BBC News article and on Afromusing, Lake Kivu in Rwanda is holding enough unexploited energy to meet Rwanda’s (and the regions) needs for 200 years. In all the excitement, finer details like the fact that methane is a extremely explosive gas were left out - more details here.

I’d like to go on, but I think you get the idea - we are literally going to be pulling teeth to come up with a solution. Ultimately, the environment will be a casualty if we want to get what everyone else has.

Mobile-Centric Business Not Ready For Primetime

Every enthusiast needs a skeptic around to keep them balanced. The power of positive thinking is immense—but so is its capacity for error, unless you take the time to answer the skeptics before committing yourself.

That said… I'll get to my point. The 'Cell Phones Are The Future' statement is very heavily clichéd at this point. It is said that the mobile phone is the one pervasive device that has penetrated some of the poorest economies due to the overwhelming demand for any form of telecommunications. Sure, but If you're an entrepreneur thinking of leveraging this mobile platform, consider the following:

  • The mobile phone companies have invested billions in notoriously difficult economies in Africa and are currently raking in sweet profits. Trust me, they're not about to share the loot with just anyone after pouring blood and sweat into the current infrastructure. The barriers to entry are extremely high at this point… and I'm almost tempted to say that the current companies have ganged up in a cartel-like structure to protect themselves.

  • Africa is the wild west. Interoperability issues are sure to be a big problem especially where m-commerce is concerned. Interoperability aside, I can't even begin to fathom the imminent fraud quandary.

  • Seriously - all cell phones are good for at this point is calling and sending text messages. Outside the cell phone companies, the only other people cashing in are selling ringtones and graphics. Beyond that we have very few early adopters willing to try anything else.

Many of the new startups are spending ridiculous amounts of money on impractical schemes. Is anyone even studying the habits of the end user to determine if all this is necessary? Someone will make plenty of $$$$ down the road, but until then there will be plenty of burnouts on the side of the road.

I'm sorry for the pessimistic view, but that's just my 2 cents.