Life at the BoP

Life at the BoP Source: Tinga-tinga paintings in a curio shop in the Mwenge district (Dar es Salaam, Tanzania), Wikimedia Commons, by MoongateclimberUnderstanding user lives and needs in Tanzania,India and Senegal among smallholder farmers,women entrepreneurs, and youthConducted for Movirtu by TNSSponsored by: Grassroots Business Fund, Frog Design and TLcom Capital LLP

Introduction to the findingsUser-centred design is critically important for programmes with a commercialand a social orientation, such as Movirtu’s mobile identity services targeted at thebase of the pyramid users in Africa and South Asia.We believe the needs, wants, and challenges of users should be at the heartof what Movirtu develops. We need to optimise our products around how userscan, want, or need to use that technology, rather than forcing users to changebehaviour to accommodate products.In technology in general, and mobile communications in particular, statisticsabound. We have a wealth of quantitative and macro insight (eg percentage Source: Movirtu Limitedpenetration of phones or smartphones, use of agricultural information servicesamong farmers, economic impact on GDP of mobile services). Rather than createmore numbers, we use them along with a series of expert interviews to formulatehypotheses and validate our findings. 500 million + Africa Social mediaIndia Facebook mobile phone subscribers You Tube 246 million in 2008 Orkut In INCREASE OF OVER 100% Blogspot 170m 110 million + Internet users in 2010 4.5 million in 2000 1,200m 1,200m 15,000m INCREASE OF OVER 2357.3%Source: http://mansitrivedi.tumblr.com/post/9410298128/infographic-asia-pacific-social-media-statistics Source: http://mansitrivedi.tumblr.com/post/4685320939/an-infographic- breakdown-of-the-african

Their lives in their wordsThere is little publicly available documentation of conversations with peopleliving on $1-2/day about their lives, needs and aspirations. We need their inputif we are to continue to design mobile services that meet their needs anddeliver impact.With our strategic research partners TNS, we listened in detail to nearly a Source: Jonathan Kalan for Movirtu Limitedhundred end users in three countries during the course of this work. We selected‘leading edge’ users: those likely to be engaged with and influential in technology.We spoke with women entrepreneurs, smallholder farmers, and youth.We are sharing a few high level insights in this brief overview, but there is muchmore available that we would be happy to share.We are making this research available for the good of all who work to the benefitof the base of the pyramid around the world.% of living at theBase of the Pyramid(1-2$ per day)per country Tanzania email: hello@movirtu.com India Senegal to share your thoughts, ask us questions, or request further info. Source: World Bank data We welcome your interest. 63% 75% 89%

Country overview Source: UnicefSource: Ray Witlin, World Bank Source: CPAR Source: flikr.com by ifc_sknSenegal % of people Tanzania % of income involved Spent on food in smallholder by farmers % of farmers India farming 70% 80% earning under Rs 5000/acre source: Povertyportal.org ($108) growing wheat 80% source: farmerswelfare.org, xe.com source: AFDB.org

Womens’ prime motivation Source: Unicefis a better life for their children:funding education is keyAcross our markets, parents invest in education in order for their children to earna better income, have a better life, and support their families. UK World Bank Ed STATS% of universityaged populationat university Jonathan Kalan for Movirtu Limited Source: UK BIS India Senegal Tanzania 4.9% 13.2% 1.2% 40%Average income per Source: World Bank EdStats 2007; World Bankyear in each country Data 2010; The Report: Senegal 2008vscost of 1 yearat privateuniversity Senegal India Tanzania “children fromanow onwards… my I want to set foundation for it means I do business and save some money for them to continue well in school ” GNI: $630 UNI: $2100 GNI: $1340 UNI: $1487 GNI: $530 UNI: $1500 Siwatu, Woman Entrepreneurs Group, Tanzania

Farming is seen as low status andrisky: few farmers want their childrento carry on farming in the future“ Our dreams are over:My brother’s dream wassuccessful and he was ableto admit his daughter inmedical college ”Gnunasekar, Farmer group, India“ Farmer is seen as nothingAnet, Farmer Group, Tanzania ”“ Life is a lot ofencounter challenges. Source: Jonathan Kalan for Movirtu LimitedAs farmers weproblems in weatherconditions, climaticchanges, and pestsattacking has increasedAllen, Farmer Group Tanzania ”

Religion is the bedrock of life,guiding many decisions andproviding support in groups,particularly for women.% of religion by country Senegal India Tanzania Source: Dakar, BBC Source: Wikipedia Islam: 90% Other: 10% Tamil Nadu Hindu: 88% Other 12% Christian: 45% Islam: 40% Other: 15% “ Religion runs marked by prayers of daily life, like a thread through gratitude in times of plenty and prayers of supplication in times of need.“ Each morningI pray to God for “ I belong to a choir group and Religion confers identity on thesuccess in the work an Arabic readingI do at the salonRacky Youth, Group Senegal ” group (Maulid) ” Richard, Youth Group, Tanzania individual and the group ” Source: “The story of Africa”, BBC

Life has become much moreexpensive as a consumer.The biggest squeeze is Source: Jonathan Kalan for Movirtu Limitedat the Base of the Pyramid.Peter Smerdon, “The people hit hardest bAfrica spokesman this combina y tion of factofor the UN’s World are those livin rs g on the razor’Food Programme edge of pover s ty. There is n(WFP), told one single co ot untry in AfrThe Times: not negati ica vely affecte Indeed, most d. Jonathan Kalan for Movirtu Limited countries in th world are aff e ected.” World Commodity “ Foodstuffs used to be less Price Index food & oil. expensive, but now rice, oil, Source: IMF, World Economic Outlook everything is very expensive ” Daba, Woman farmer, Senegal “ We were buying sandals for 700 TZS ($0.4) but now “ Minimum wage rules mean we it costs 1500 TZS ($1). ” cannot hire help Farmer, Tanzania Everything has gone up ” Woman Entrepreneur Group, India

Youth are fascinated by technology.They influence and educate adults.India Internet use Tanzania % of farmers who use the internet 6% 6% 7% Source: Jonathan Kalan for Movirtu Limited 11% 11% 8% Yes 2% 14% 13% 15% Youth usage is the majority No and growing 98% 28% 30% fastest 33% School going kids Source: Bill & Melinda Young men Gates Foundation 30% Working women 21% 27% College going students Older men 14% 12% 14% Non working women2007 2008 2009 “ I feel thedevelopment,withthey technology children go so the “the Internet. My tenSource: I-Cube, Internet & Mobile Association Kids do everything of India (IAMAI) and IMRB on can come up. We are very backward. year old child goes to Let our kids understand and come cybercafés. I haven’t learned much because I forward and we will welcome it ” don’t know about it Astou, Women Group, Senegal ” Mahalakshmi, Women Group , India

Opportunity to build trust inmobiles through mass mediaTrusted information sources for farmers in Tanzania: Source: Jonathan Kalan for Movirtu Limited Source: Bill & Melinda Gates FoundationRadio 73% Neighbour 58% Local Leaders 62% Newspapers 15% TV 10% Mobile SMS Alerts 10% % of farmers India who have ever used mobiles for agricultural % users whoBoP information listen to radio “Where I am there’s no “ We can on a mobile 45% electricity or water, but there’s a radio ” 13% understand world matters ” Daba, Woman Group, Senegal Source: CABI India from TV Source: TNS Mobile Life Geeta, Woman Group, India

ImplicationsOur research has a number of implications for organisations who seek to serve theneeds of the world’s rural poor.Existing surveys assume respondents welcome material gain today, and askusers if they want home improvements or extra income, to which they reply yes.When you ask people their point of view, they say their most powerful motivation is Source: Jonathan Kalantheir childrens’ future, which can be improved through education. This insight canbe used as a core positioning for services designed to drive changes in behaviour.Rural children need better support through secondary school, where there isa large gap between rural and urban attendance. Mobile applications can playa cost effective and scalable role in addressing the gap.Hope is invested in the next generation because today’s rural farmers, eventhe most productive, feel farming is low status, high risk, and has no future. help for adults, who allow youth to show them how devices work andThis insight has some sobering consequences for the future payback of current farm encourage them to use mobile themselves. Using youth to encourageproductivity interventions. Who will take over the farming when the productive the adoption of technology within families and communities mayplots have been sold off to pay for kids’ schools, and when the next generation turn be a productive strategy for services which rely on using mobile dataup their noses-literally and figuratively-at farming? Restoring some of the rightful for the first time.dignity of farmers can come through innovative and low-cost interventions such asmobile weather and market price information combined with insurance, by scaling Radio in Tanzania and Senegal and television in India, as trusted andand combining the current work of development innovators. widely available media, offer many opportunities beyond advertising to highlight the value of mobile and technology services to the BoP.The BoP’s spending power has been under significant pressure since 2008. All The high penetration of radio listening on the mobile among the BoPinputs and basics are much more expensive, though farmers enjoy none of the offers ways of reaching users through a more trusted and familiarbenefit in the retail price hike of their produce. This insight challenges the notion form than SMS messaging. Combining entertainment and pedagogyof affordability in mobile. Penetration growth of mobile among this group was creates ‘pull’ to services through characters and stories. The historicallymeant to grow with the availability of ‘affordable’ handsets at $15 each. The BoP validated model deserves to be brought into the digital age.simply have less and less in their pockets, and the situation looks likely to continue.Planning the adoption of mobile services must work within the purchasing constraints These are initial findings for public dissemination but weof this group: shared usage as well as cost effective mobile identity services. welcome you to add to them. Visit our Movirtu Facebook page, send us a tweet to @movirtu to comment, or email usTechnology adoption in these markets, as in many, rests in the hands of youth. directly to ask for more at hello@movirtu.com.Despite being the least likely to own devices, they have avid curiosity andengagement, and learn how services work quickly. Their aptitude is of great

Acknowledgements• Thanks to our expert interviewers, who gave generously of their time, resources, and pointers to existing work• Sharbendu Banerjee, CABI• Niti Bhan, Sematech Source: Johnathan Kalan for Movirtu Limited• Jenny Everett, Program Manager, ANDE• Robert Fabricant, Michael Cetaruk and the team at Frog Design• Corina Gardner, Fiona Smith and Trina DasGupta, GSMA• Amanda Gardiner and Christine Ribeiro, UNDP• Bill and Melinda Gates Foundation (for critical farmer segmentation)• Tamara Giltsoff, founding partner, abundancy partners and TED fellow• Stephen Haggard, consultant media and technology Thanks for the expertise from our strategic research partners at TNS• Nick Heller, Karina Pryzemski and team at Google EMEA in Nairobi, Mumbai, London and on the ground in Dar es Salaam, Chennai, and Dakar.• Jonathan Kalan, The BOP Project Thanks to our investors TLcom Capital LLP, Gray Ghost™ DOEN Social• Kabir Kumar and Xavier Faz and the team at CGAP Ventures Coöperatief, U.A. and Grassroots Business Fund.• Ted London and Heather Esper, William Davidson Institute Most especially thank you to our hundred respondents in Tanzania, India and Senegal, who shared their lives with us• Alan Quayle, journalist and analyst and gave up their time so that we could understand their world better from the inside.• Harold Rosen and team at Grassroots Business Fund Movirtu is the leading pioneer of Mobile Identity Management (MIM)• Joanne Sawicki, CEO Ceres Communications solutions for wireless telecommunication service providers. Movirtu has• Vineeta Shetty and Kojo Boakye, CTO redefined the mobile landscape by using cloud infrastructure to tie a mobile identity to a user rather than a device. www.movirtu.com

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Life at the BoP

by Movirtu on Sep 21, 2011

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