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WHY  NAIROBI  IS  THE  NEXT  WORLD  TECH  CAPITAL
SILICON  SAVANNAH
www.ondeviceresearch.com
DID  YOU  KNOW…
THAT  AFRICA  HAS  THE
MOBILE  MARKET
FASTEST  GROWING
IN  THE  WORLD?
KEY  AFRICA  MOBILE  TRENDS
82%  annual  mobile  growth  rate
Between  2010-­‐2013  Africa  was  the  fastest  growing  re...
PREDICTED  POPULATION,  IN  MILLIONS
Source:  United  NaQons  PopulaQon  Division,  July  2013
THE  CONTINENT
IS  GETTING
CONNECTED
Internet  users  in  2012  as  the  percentage  of  
the  country’s  populaQon
Kenya
]
Source:  InternaQonal  Telecommunic...
Source:  World  Bank,  2010
KENYA’S  TELECOM  REVOLUTION
POPULATION
INTERNET  PENETRATION  2013
MOBILE  PHONE  PENETRATION
POPULATION  UNDER  18
ANNUAL  GROWTH
LANDLINE  PHONES
41...
HIGH  GROWTH
Source:  CCK,  Operator’s  Returns
66
69
72
74
77
80
Dec  ‘11 Mar  ‘12 Jun  ‘12 Sept  ‘12 Dec  ‘12
71.3
74
75...
%  of  internet  users  and  penetraQon
HIGH  GROWTH
0
10
20
30
40
50
Dec  ‘11 Mar  ‘12 Jun  ‘12 Sept  ‘12 Dec  ‘12 Mar  ‘...
Mobile  data  conQnues  to  
dominate  the  internet  
market,  contribuQng  99%  
of  the  total  internet/data  
subscri...
MAIN  NETWORKS  &  SUBSCRIBERS
9%
19%
72%
5.2  million
2.5  million
19.8  million
0.23  million
47%  of  Kenyans  have  a  Series  40  
or  Symbian  OS    phone  
i.e.  a  feature  phone  by  Nokia
Source:  statcounter...
Source:  Buzzcity,  2013
NOKIA  STILL  RULES
Source:  statcounter.com,    July  2013
ANDROID  IS  GROWING
7.5
1414
19
21
22.523
29
35
42
63
80
Source:    On  Device  Research,  2013
ön><  6  ` $
Music
Games
Sports  updates
...
SOCIAL  MEDIA  IN  KENYA
Kenya  has  the  second  most  acKve  Twier  
users  in  Africa  a]er  South  Africans.
2.4  mill...
AFRICAN  FACEBOOK  USERS,  2013
Source:  Afrographique
Source:  zerogeography.net
KENYA  IS  THE
GLOBAL  LEADER
IN  MOBILE  MONEY
TRANSFER  SERVICES
M-ticketing
HOW  MOBILE  MONEY  IS  USED
…and  all  without  needing  a  bank  account,
bank  card,  smartphone  or  contr...
MOBILE  MONEY  PENETRATION
2/3
$2.63  
billion
of  Kenyans  over  15  are  subscribed
to  mobile  transfer  services
In  t...


 Launched  in  2007  by  Safaricom
19  million  total  users,  10.5  
million  monthly  acQve  users
25%  of  the  co...


 78%  of  mobile  money  
subscribers  use  M-­‐Pesa
M-­‐Pesa  has  over  60.000  
agents,  26.000  of  whom  were  
...
SILICON  SAVANNAH
STRONG  KENYAN  GOVERMENT  LEADERSHIP
“Launched  in  January  2013,  Konza  
technology  city  is  expected  to  
cement  ...
STRONG  KENYAN  GOVERMENT  LEADERSHIP
“Kenya’s  growth  has  been  
aoributed  to  strong  na<onal  
leadership,  parQcula...
STRONG  KENYAN  GOVERMENT  LEADERSHIP



Kenya  was  the  first  country  in  Sub-­‐Saharan  
Africa  to  introduce  a  ...
THERE  ARE  50  AFRICAN  TECH  HUBS
Source:  africahubs.crowdmap.com
TOP  KENYAN  TECH  ORGANISATIONS
Nairobi’s  InnovaQon  Hub  for  the  technology  
community  is  an  open  space  for  th...
VC4Africa  is  the  largest  online  community  of  
venture  capitalists,  angels  and  enterpreneurs  
dedicated  to  bu...
Business  incubator  focused  on  providing  the  right  
ingedients  to  turn  business  ideas  into  viable  
startups.
...
KENYA
HAS  LOTS
OF  COOL
STARTUPS…
REAL-­‐TIME  CROWDSOURCED  
CRISIS  MAPPING
Ushahidi  is  an  open-­‐source  tool  to  
crowd-­‐source  informaQon  using ...
AFRICA’S  ANSWER  TO  INTERNET  
CONNECTIVITY
BRCK  is  a  back-­‐up  generator  for  the  
internet.  It’s  a  router  fo...
HELPING  FARMERS  THROUGH  THE  
MEDIUM  OF  SMS
M-­‐Farm  provides  farmers  with  
access  to  current  market  prices. ...
RENT-­‐TO-­‐OWN  SOLAR  FINANCING
M-­‐KOPA  provides  affordable  solar-­‐
powered  lighQng  and  mobile  
charging  to  ru...
WANT  TO  REACH  KENYAN  CONSUMERS?
On  Device  Research  uses  the  
mobile  internet  to  gain  access  
to  consumer  o...
INTERESTED  IN  MOBILE  RESEARCH?
www.ondeviceresearch.com  
for  more  informaQon
or  contact  Siim  Teller
siim@ondevice...
Silicon Savannah - Why Nairobi Is The Next World Tech Capital
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Silicon Savannah - Why Nairobi Is The Next World Tech Capital

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Nairobi is one of the hottest and fastest growing tech hubs in the world right now. We look at the internet, mobile and social trends that help boost the local economy and have boosted the number of local tech startups.

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  • This is quite good... and its true, Kenya is getting well adverse in the technology world. I started a blog/site of my own, http://itechjungle.com and its aim is to share the love of technology and spread technology information so as to create more awareness in technology and how to use it to serve one best....
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Transcript of "Silicon Savannah - Why Nairobi Is The Next World Tech Capital"

  1. 1. WHY  NAIROBI  IS  THE  NEXT  WORLD  TECH  CAPITAL SILICON  SAVANNAH www.ondeviceresearch.com
  2. 2. DID  YOU  KNOW… THAT  AFRICA  HAS  THE MOBILE  MARKET FASTEST  GROWING IN  THE  WORLD?
  3. 3. KEY  AFRICA  MOBILE  TRENDS 82%  annual  mobile  growth  rate Between  2010-­‐2013  Africa  was  the  fastest  growing  region in  terms  of  mobile  broadband. Mobile  =  4.4%  of  African  GDP Mobile  has  contributed  $32  billion  to  the  Sub-­‐Saharan  African   economy,  which  has  been  growing  at  5%  during  the  last  decade. 500  million  mobile  connecQons  in  2013 Mobile  connecKons  in  Sub-­‐Saharan  Africa  are  projected  to  increase   by  an  addiKonal  50%  by  2018. O # 7
  4. 4. PREDICTED  POPULATION,  IN  MILLIONS Source:  United  NaQons  PopulaQon  Division,  July  2013
  5. 5. THE  CONTINENT IS  GETTING CONNECTED
  6. 6. Internet  users  in  2012  as  the  percentage  of   the  country’s  populaQon Kenya ] Source:  InternaQonal  TelecommunicaQons  Union,  2013
  7. 7. Source:  World  Bank,  2010 KENYA’S  TELECOM  REVOLUTION
  8. 8. POPULATION INTERNET  PENETRATION  2013 MOBILE  PHONE  PENETRATION POPULATION  UNDER  18 ANNUAL  GROWTH LANDLINE  PHONES 41.6  Million 41% 78% 20.3  Million 75% 251,000 g ^ N Source:  Dahlberg,  April  2013,  cc.go.ke  April  2013 KEY  AFRICA  MOBILE  TRENDS
  9. 9. HIGH  GROWTH Source:  CCK,  Operator’s  Returns 66 69 72 74 77 80 Dec  ‘11 Mar  ‘12 Jun  ‘12 Sept  ‘12 Dec  ‘12 71.3 74 75.4 77.2 78 %  of  mobile  penetraQon
  10. 10. %  of  internet  users  and  penetraQon HIGH  GROWTH 0 10 20 30 40 50 Dec  ‘11 Mar  ‘12 Jun  ‘12 Sept  ‘12 Dec  ‘12 Mar  ‘13 22.7 28.7 30 30.9 36.8 41.1 8.9 11.3 11.8 12.2 14.6 16.2 Internet users % of population with internet access Source:  CCK,  Operator’s  Returns
  11. 11. Mobile  data  conQnues  to   dominate  the  internet   market,  contribuQng  99%   of  the  total  internet/data   subscripQons. “ ”Source:  CCK,  April  2013
  12. 12. MAIN  NETWORKS  &  SUBSCRIBERS 9% 19% 72% 5.2  million 2.5  million 19.8  million 0.23  million
  13. 13. 47%  of  Kenyans  have  a  Series  40   or  Symbian  OS    phone   i.e.  a  feature  phone  by  Nokia Source:  statcounter.com
  14. 14. Source:  Buzzcity,  2013 NOKIA  STILL  RULES
  15. 15. Source:  statcounter.com,    July  2013 ANDROID  IS  GROWING
  16. 16. 7.5 1414 19 21 22.523 29 35 42 63 80 Source:    On  Device  Research,  2013 ön><  6  ` $ Music Games Sports  updates TV  /  video Operator  services Local  news Maps,navigaKon Banking Books,  magazines InternaKonal  news Weather ProducKvity WHAT  KENYANS  DO  ON  THEIR  MOBILE
  17. 17. SOCIAL  MEDIA  IN  KENYA Kenya  has  the  second  most  acKve  Twier   users  in  Africa  a]er  South  Africans. 2.4  million  tweets  were  sent  out  in  the  final  3   months  of  2011. 1.95  million  Kenyans  used  Facebook  in   October  2012. Kenya  is  also  the  second  largest  Facebook   country  in  Sub  Saharan  Africa  a]er  Nigeria. Source:  socialbakers.com G U
  18. 18. AFRICAN  FACEBOOK  USERS,  2013 Source:  Afrographique
  19. 19. Source:  zerogeography.net
  20. 20. KENYA  IS  THE GLOBAL  LEADER IN  MOBILE  MONEY TRANSFER  SERVICES
  21. 21. M-ticketing HOW  MOBILE  MONEY  IS  USED …and  all  without  needing  a  bank  account, bank  card,  smartphone  or  contract! Disburse salaris and pay bills Send money to relatives and friends - even from abroad Mobile top- ups (29% of Safaricom top-ups) In-store purchases Loans and savings products
  22. 22. MOBILE  MONEY  PENETRATION 2/3 $2.63   billion of  Kenyans  over  15  are  subscribed to  mobile  transfer  services In  the  final  quarter  of  2012 deposits  totalled N# # # # # N Source:  CCK,  April  2013
  23. 23.    Launched  in  2007  by  Safaricom 19  million  total  users,  10.5   million  monthly  acQve  users 25%  of  the  country’s  GDP  flows through  M-­‐Pesa Source:  Economist,  May  2013,  Safaricom,  2013
  24. 24.    78%  of  mobile  money   subscribers  use  M-­‐Pesa M-­‐Pesa  has  over  60.000   agents,  26.000  of  whom  were   recuited  in  2012. M-­‐Pesa  contributes  to  18%  of   Safaricom’s  total  revenue,  more   than  SMS  and  data  put  together In  2012  M-­‐Pesa  revenues  grew   by  29%  M-­‐PESAS  IMPACT Source:  Economist,  May  2013,  Safaricom,  2013
  25. 25. SILICON  SAVANNAH
  26. 26. STRONG  KENYAN  GOVERMENT  LEADERSHIP “Launched  in  January  2013,  Konza   technology  city  is  expected  to   cement  Kenya’s  role  as  a  regional   technology  leader  in  Africa. The  project  is  expected  to  cost  $10   billion  and  create  more  than   200,000  jobs.” Source:  theafricareport.com,  April  2013
  27. 27. STRONG  KENYAN  GOVERMENT  LEADERSHIP “Kenya’s  growth  has  been   aoributed  to  strong  na<onal   leadership,  parQcularly  the   establishment  of  a  strong   regulator  and  the  inclusion  of  ICT   as  a  pillar  for  naQonal  growth  in   the  Vision  2030  plan.” Source:  Dalberg,  April  2013
  28. 28. STRONG  KENYAN  GOVERMENT  LEADERSHIP    Kenya  was  the  first  country  in  Sub-­‐Saharan   Africa  to  introduce  a  government  open  data   portal Central  drive  to  increase  access  to   bandwidth More  than  80%  SMEs  surveyed  expected   that  the  internet  will  help  them  grow  their   business,  and  70%  of  those  expect  to  hire   new  employees  as  a  result ICT  has  led  to  innovaQon  across  departments   in  Kenya,  e.g.  online  training  for  nurses  Kenya  has  a  strong  business  environment   and  good  educaQon  system  but  weaker   physical  infrastructure 
  29. 29. THERE  ARE  50  AFRICAN  TECH  HUBS Source:  africahubs.crowdmap.com
  30. 30. TOP  KENYAN  TECH  ORGANISATIONS Nairobi’s  InnovaQon  Hub  for  the  technology   community  is  an  open  space  for  the  technologists,   investors,  tech  companies  and  hackers  in  the  area. It  has  over  10,000  members,  150  incubated   companies  and  backing  from  companies  including   Google,  Intel  and  Samsung IdenQfying,  nurturing,  and  helping  to  build   sustainable  East  African  enterprises  with  a  mobile   technology  focus.
  31. 31. VC4Africa  is  the  largest  online  community  of   venture  capitalists,  angels  and  enterpreneurs   dedicated  to  building  businesses  on  the  African   conQnent. Provide  access  to  seed  funding  (up  to  $100,000),   mentorship,  collaboraQve  working  space  in  the   heart  of  Nairobi’s  business  district,  intensive   series  of  workshops  and  access  to  investors. Savannah  Fund  is  a  seed  capital  fund  specializing   in  $25,000-­‐$500,000  investments  in  early  stage   high  growth  technology  (web  and  mobile)   startups  in  sub-­‐Saharan  Africa. TOP  KENYAN  TECH  ORGANISATIONS
  32. 32. Business  incubator  focused  on  providing  the  right   ingedients  to  turn  business  ideas  into  viable   startups. Three-­‐month  accelerator  programme  in  Nairobi   and  Cape  Town,  invesQng  up  to  $100K  in  10-­‐12   startups.  Funding,  enterpreneus-­‐in-­‐residence  and   office  space  provided. TOP  KENYAN  TECH  ORGANISATIONS
  33. 33. KENYA HAS  LOTS OF  COOL STARTUPS…
  34. 34. REAL-­‐TIME  CROWDSOURCED   CRISIS  MAPPING Ushahidi  is  an  open-­‐source  tool  to   crowd-­‐source  informaQon  using   mulQple  channels,  including  SMS,   email,  Twioer  and  the  web. Used  in  128  countries  to  map  and   respond  to  crises  including  HaiQ   earthquake,  Texas  oilspill  and   Kenyan  elecQon  monitoring.
  35. 35. AFRICA’S  ANSWER  TO  INTERNET   CONNECTIVITY BRCK  is  a  back-­‐up  generator  for  the   internet.  It’s  a  router  for  20  people   with  8+  hours  of  baoery  when  the   power  goes  out.  If  broadband  fails   it  switches  to  3G  and  becomes  a   travelling  mobile  hotspot.
  36. 36. HELPING  FARMERS  THROUGH  THE   MEDIUM  OF  SMS M-­‐Farm  provides  farmers  with   access  to  current  market  prices.  It   aggregates  their  needs  into   discount  orders  with  suppliers  and   gives  them  direct,  collecQve  access   to  both  regional  and  export   markets.
  37. 37. RENT-­‐TO-­‐OWN  SOLAR  FINANCING M-­‐KOPA  provides  affordable  solar-­‐ powered  lighQng  and  mobile   charging  to  rural  Kenyans  on  a  pay-­‐ as-­‐you-­‐go  basis,  with  payments  via   M-­‐Pesa.
  38. 38. WANT  TO  REACH  KENYAN  CONSUMERS? On  Device  Research  uses  the   mobile  internet  to  gain  access   to  consumer  opinion  any  Qme   or  locaQon. Mobile  research  brings  fresh,   instant  responses  that   accurately  capture  the  feelings,   thoughts  and  opinions  of   people  anywhere.
  39. 39. INTERESTED  IN  MOBILE  RESEARCH? www.ondeviceresearch.com   for  more  informaQon or  contact  Siim  Teller siim@ondeviceresearch.com +44  207  278  2267 Follow  us:    
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