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The Growing Technological Consumer Base in West Africa

Technological consumer base in West AfricaThe whole of Africa is known for being an incredibly poor continent. While improvements have been made in certain aspects of life that have provided citizens with better and easier lives in some regions, Africa is still in need of advances that work towards lessening poverty throughout this vast nation. The growing technological consumer base in West Africa, particularly the digital economy and mobile outreach, is becoming a very big deal.

When it comes to technological advances in smaller countries or regions of countries, some nations are way ahead of others. This is largely due to the fact that certain countries have more money than others to invest in these advancements. Even though money may be limited, some areas have found ways to achieve technological improvements.

The technological consumer base in West Africa has experienced a major increase in users in only a decade. Subscribers for the mobile economy of West Africa have reached 47 percent, up from 27 percent ten years ago. These advancements have created new opportunities for government, various industries, start-up businesses, and more. A conference held in April 2018 addressing West Africa’s digital revolution in the last ten years revealed two major factors that contributed to this new digital age: people and technology. People are the ones who rely on, create, and consume technology in increasing numbers while technology and technological advancements continue to broaden their impact the more they are improved upon. The conference was devoted to these two factors in an attempt to bring continued support for integrating mobile and digital technology into society in these regions and bolstering the new growing base of users.

An example of the impact of the increasing technological consumer base in West Africa occurred in 2017. To begin, 85 percent of the world’s population lives in Africa, Asia, and Latin America. Large companies such as Google realize that what works for citizens in western culture may not work in the most heavily populated regions of the world. When 1GB of data can cost a consumer almost 10 percent of monthly income, better user options must be considered to grow the consumer base. Recognizing this, Google broadened the YouTube Go app to Nigeria. This app is data-friendly and allows viewers to save and watch videos offline. Google also created an app called Datally for Android which helps users conserve data. As an internet conglomerate, Google realizes that areas like West Africa are the future of the world’s growth. It focuses on ways to enable these areas to grow in a technological age and improve life for its citizens.

Organizations, such as the World Bank Group, have been promoting a digital economy in all parts of Africa. A digital economy will connect Africa’s citizens to various industries, services, information, and each other. In addition, it will provide people with a digital ID to validate their identity and help them connect to necessary government services. Citizens will also gain easier access to formal financial services including mobile money, such as e-commerce and online markets. West Africa’s most recent technological developments and increasing consumer base provide proof that these advancements are possible, they work in these regions, and they make life better for its citizens. This can influence other regions of Africa to continue developing a digital economy.

West Africa’s growing technological consumer base is a possible stepping stone to a better future for Africa as a continent. This growth of the digital economy in Africa that will give citizens much-needed resources, provide more economic opportunities, and create a better way of life.

– Haley Saffren
Photo: Flickr

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Visa Helps Advance Consumerism in Sub-Saharan Africa

Advance Consumerism in sub-Saharan Africa

As a way to build a more “digitally exclusive ecosystem,” Visa is partnering with Branch International to advance consumerism in sub-Saharan Africa. So the Branch-Visa partnership offers over 2 million consumers in sub-Saharan Africa virtual, prepaid Visa debit cards. With these virtual Visa accounts, consumers can then create accounts on Branch, the most downloaded finance app in Africa. Now, with access and finance, citizens are even able to invest in technology. As a result, this donation will advance consumerism in sub-Saharan Africa, even enabling consumers to start their own tech companies.

Here’s how and why Sub-Saharan Africa needs this.

Sub-Saharan Africa Can Participate in Global Consumerism

Giving citizens in sub-Saharan Africa access to online purchasing allows them to contribute to global markets. Many setbacks prevent citizens of impoverished African countries from entering this market. These setbacks include:

  • Lack of transportation
  • Limited stores selling modern, technological products
  • Having only cash to buy products
  • Having low or no credit score

Enabling these citizens to start their own tech companies will advance consumerism in sub-Saharan Africa, as products become accessible and affordable.

Most of Sub-Saharan Africa is Unbanked

According to Business Insider, only about 30 percent of sub-Saharan African adults had a bank account as of 2014. This percentage drops to below seven in Niger, Guinea and the Central African Republic. About 42 percent of citizens in these countries cite lack of money as the reason for not having an account.

But with prepaid debits cards, over 2 million citizens in Sub-Saharan Africa can now access online banking. Additionally, the region is also expanding its internet access, to even the most remote parts of Kenya and Tanzania. Ultimately, these efforts will advance consumerism in sub-Saharan Africa, as online banking becomes accessible to more citizens.

Merchants Can Grow Their Businesses

Currently, most small businesses and startups in sub-Saharan Africa are unable to access quick loans. However, the Visa-Branch partnership also includes preferential small business loans to Visa merchants. So as small businesses and startups grow, citizens will have greater access to tech companies across the region.

Because most sub-Saharan African citizens do not possess bank accounts, they rely on cash and only invest in local businesses. But this partnership with Visa and Branch International allows these citizens to use online banking and expand their reach. In doing so, they not only help grow businesses across the region but advance consumerism in sub-Saharan Africa.

– Sara Devoe
Photo: Flickr

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How Can I Shop Ethically?

shop_ethically
Clothes, food, technology. These are things everybody needs but also have strong associations to ethical problems. Shopping ethically is a growing concern for many people, yet the idea that ethical purchases are not affordable is pervasive. In addition, the constant bad news surrounding the practices of companies makes it seem impossible to be an ethical shopper. All of this leaves many of us with one question:

How can I shop ethically?

It is a question being asked a lot these days. And even though it might not seem easy, a little extra attention can go a long way, and it is not as expensive as it may seem. Here’s a few easy ways to shop ethically.

Do Your Research

In the fight to shop ethically, research is everything.

The biggest companies can afford to market themselves as ethical to shoppers. This allows them to manipulate concerned consumers into purchasing their products.

Luckily, there are ways to know what you’re buying before you buy it. Ethicalconsumer.org, for instance, ranks products in a variety of categories based on different metrics. Much of this information is available for free on the site, though some more in-depth information requires a subscription.

Doing research on products is a good way to be sure that what you’re buying is an ethical choice. In addition to researching, remaining vigilant in reading labels to spot companies notorious for ethical violations, such as Coca Cola and Nestle, is a key element in shopping ethically.

Thrift Shop

Goodwill currently operates over 2,500 stores in the United States. Savers operates over 270 stores. There are also countless independent thrift stores, providing good clothing for a low price. For consumers looking to ethically shop, thrift stores provide an affordable way to avoid incentivizing the abusive practices of the larger clothing industry.

Unethical labor practices is the biggest concern proponents of ethical consumerism have regarding the clothing industry. Though a variety of clothing sources exist that do not support this, many of these sources are not cost-effective. By purchasing clothing at a thrift shop, fashion-conscious activists can both avoid feeding into unethical labor chains and support their local communities.

Make it a Treat

Let’s get this out of the way: most ethical chocolates and coffees will be more expensive than their less ethical alternatives. Unfortunately, the exploitation of the developing world that is all too common within these industries is, more often than not, a cost-cutting measure. When cocoa farmers in the $16 billion-per-year chocolate industry receive between $30 and $100 per year, this is a measure by those in power to cut costs.

This does mean that, in general, most ethical chocolates and coffees will be a bit less friendly to your wallet. But by treating these items as occasional treats, you can save up for the ethical, and better, brands and indulge guilt free.

Shopping ethically is just as much about what we don’t buy as it is what we buy. When chocolate from Côte d’Ivoire, where CNN stated slavery within the chocolate industry is “normal,” is purchased, shoppers incentivize the highly unethical practice. Though more expensive and ethical options may not be purchased with the same regularity, purchasing them exclusively while buying chocolate less exclusively both supports ethical production of chocolates and rejects the lack of ethics within the chocolate industry.

Ethical consumerism is a increasing concern. This is good, but it is also easy to feel nihilistic when faced with a structure which, previously, hasn’t had to take things into account. But by being smart and patient, consumers can find easy and affordable ways to shop according to ethics.

– Andrew Michaels

Sources: Ethical Consumer, Time Green America, CNN Blogs
Photo: Natura Magazine

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Africa’s Rising Middle Class

Growing Middle Class in Africa
The middle class is essential for economic and democratic growth. The continent of Africa, consisting of 54 independent countries, contains the poorest countries in the world, according to the human development index created by the United Nations. However, over the last 15 years, the middle class in Africa has grown.

As the middle class expands, so does consumerism. The growth of the African middle class not only means more stability for Africa, but also more profit for American businesses. More of the African population is buying televisions, cell phones, and leisure and entertainment items, which Western companies provide.

But, how is the African middle class defined? In the U.S., there is a struggle to define the middle class. However, it is clear that those earning about $20,000 to $120,000 a year would categorize themselves as middle class. In Africa, the range is quite different. The middle class consists of those earning $2-$20 a day, or $730-$7,300 a year.

A strong and large African middle class is beneficial. The African middle class consumed approximately $680 billion in 2008, consisting of nearly a quarter of Africa’s GDP. At this rate, Africa will comprise approximately 3 percent of worldwide consumption by 2020, with about $2.2 trillion of consumer spending. The middle class will help grow the economy as they have more income to spend and can invest more of their finances in health and education. However, 60 percent of the African population continues to earn a meager $2-$4 daily.

Those in this floating class, earning $2-$4 a day, are at risk of leaving the middle class and descending into poverty. This represents 180 million people. The floating class could slip into poverty very easily; a job loss or the death of the head of household could cause the slip. Therefore, a balancing act is required to help grow the middle class while also preventing the floating class from slipping back into poverty.

Policies that focus on both human capital development and job generation will ensure the growth of the African middle class. Continued improvements in governance, better access to technology, the rapid spread of mobile telephones, and the better use of natural resources are necessary. Additionally, social changes and policies that focus on education and health will work to support those earning $2-$4 a day.

The U.S. should continue investing in Africa through aid. History demonstrates that the U.S. benefits greatly by assisting poorer countries. For instance, from 1960 to 1974 the U.S. provided South Korea with $5.6 billion in aid. In 2010, the annual U.S. export to South Korea was $38.8 billion. But this is just one example. Find more information about the benefits of reducing global poverty here.

Now is the time to increase the investment in Africa. As the middle class is beginning to grow, investment in Africa will result in a more stable economy, growth of democracy, and an increase in consumerism. Both the U.S. and Africa will benefit from building a strong middle class throughout Africa.

– Caressa Kruth

Sources: How We Made It In Africa, UN Development Program, The Borgen Project, National Geographic
Photo: Forbes India