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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

Using the Internet for DevelopmentIf you are reading this, you are lucky enough to have something that 4.1 billion people go without every day- internet access. And while the internet may be used for a variety of frivolous and silly things like cat videos, memes and gifs, it has also become an indispensable part of daily life in the developed world. The internet also has the potential to drastically improve life for the world’s extreme poor. One study estimated that guaranteeing internet access for everyone would lift 500 million people out of poverty and add over $6 trillion to the global economy. Some people are already taking action. Here are six countries that are using the internet as the most important mean for development.

  1. Colombia.  Thirty-nine percent of Colombia’s citizens live under the poverty line, with the poorest living on under $2 a day. In response, the government has taken steps in using the internet for development by ensuring internet access for 96 percent of this tropical nation’s population. In three years, this infrastructure development raised at least 2.5 million people out of poverty. As the Minister for Technology, Diego Molano, said in an interview with The Guardian: “When we connect, for example, a rural school to Internet, when we connect a small school in the middle of the jungle to Internet, those kids in the middle of nowhere have effectively the same opportunity to access the whole of information society — just like any kid in New York, London or Paris.”
  2. China. While crowdfunding is common in the United States, it is usually not used on a such a wide scale as in China. The Chinese government has recently released an online program called Social Participation in Poverty Alleviation and Development, designed to lift at least 47 million people out of extreme poverty. Essentially, it uses social media platforms such as WeChat to allow normal citizens to help struggling families. At least $3.45 million has been raised for various projects that cover education, agriculture and more important social and economic issues, using the internet as the basis for development.
  3. Kenya. Private industry can make a difference as well. In Kenya, online banking systems such as M-PESA have helped to lift citizens out of poverty. Tavneet Suri, an economist at MIT decided to study the impacts of this phenomenon. She found that for 10 percent of families living on less than $1.25 a day using a mobile banking system was enough to lift them out of extreme poverty. The effect was even more marked amongst women. The mobile system allowed female-led families to save 22 percent more money than before.
  4. Bhutan. The small country of Bhutan located high in the Himalayan mountains has been isolated from the outside world for most of its history. The onset of the digital age changed that. The government has actively encouraged its citizens’ adoption of the internet by moving bureaucratic processes. With the support of the World Bank, information communications technology will continue to expand. In 15 years alone, the number of internet users in Bhutan grew by over 300 thousand.
  5. Rwanda. Though Rwanda may still be known in the international community for its horrific ethnic genocide, in recent years, the country has taken multiple steps towards development. The government has launched an effort called Vision2020 to cultivate an entrepreneurial, tech-savvy middle class. Internet connections are widespread throughout the country and are used for innovative purposes. One philanthropist started the Incike Initiative, an annual crowdfund that provides health care for the survivors of the genocide. Another entrepreneur started a platform called Girl Hub that allows women to give their opinions to local news sources. Rwanda fully utilizes the internet for development.
  6. Peru. With support from the international community, the Peruvian government is making efforts to connect more than 300 thousand people in rural areas to the national electric grid and, through this, to the internet as well. This connection has wider implications, especially for education. Students in these isolated areas can now be exposed to ideas in the wider world. This encourages engagement. A teacher in one of these villages, Teresa Uribe says that the kids now want to learn more, thanks to the technology.

These stories show the power of the internet to enact positive change in the developing world. If you too are interested in using the internet for development, take this opportunity to email your representatives about anti-poverty legislation. The internet’s potential should not go wasted.

– Lydia Cardwell
Photo: Flickr