Kenya’s M-Pesa revolutionised mobile money services around the globe
“M-Pesa” (a marriage of the Swahili word for money ‘pesa’ and ‘m’ for mobile) was initially launched as a corporate social responsibility (CSR) by British telecom giant Vodafone in partnership with local telecoms provider Safaricom. It was soon re-designed to process general money transactions and today, despite the fact that less than half of M-Pesa users do not have a formal bank account, users can pay their utilities, buy goods and services, access credit and build savings, in addition to transferring monies to any mobile phone. To grab some of this lucrative mobile money market, 43 commercial banks in Kenya have rallied together to set up an inter-operable digital money transfer platform in order to enable person-to-person (P2P) money transfers in real time. Not only do they promise more cost effective rates, they are completely by-passing the need to rely on telecom service providers. Given that over half of Kenya’s population uses mobile money transactions, this is very good news.
In terms of social good, economists at MIT and Georgetown have found that M-Pesa has considerably helped to reduce poverty in Kenya. In particular, some of the biggest beneficiaries of mobile money platform are women-led households. Traditionally bogged down by management of home finances by men, mobile money gives women greater control over their finances. Women typically spend their money to buy basic goods and services which improves the quality of life for their families. More importantly, despite not having access to traditional banking, through mobile money, women were safely able to generate savings which helps to lift them out of poverty.
Konza Tech City - Kenya’s version of Silicon Valley
An innovation hub of technology firms and higher education institutions, Konza Tech City will be a smart city, where integrated urban information and communication technology (ICT) network will support the efficient management and provision connected urban services on a large scale. Approved as part of Kenya’s Vision 2030 project, the Konza Tech City will serve as a world class technology hub and major economic driver for the country Kenya. It is no wonder then that the 2016 Jones Lang LaSalle (JLL) City Momentum Index (CMI) report ranked Nairobi as position number one in terms of promoting socio-economic growth in Sub-Saharan Africa. Globally, Nairobi ranked eleventh as being among cities embracing and stimulating technology and real estate development.
Oil, Gas and Water
The discovery of oil, gas and two vast aquifers in Northern Kenya has the potential to transform the quality of life of the Turkana people. Situated in the extreme north-west of Kenya, Turkana County is a semi-arid area characterised by searing temperatures and low rainfall which means it is frequently plagued by droughts. The Turkana people are traditional pastoralists and apart from the constant challenge of finding water and grass for their cattle, they are in continuous conflict with their neighbours. This is why the discovery of two immense aquifers in the region is being feted. Hydrologists estimate that the North-central region of Turkana has underground water reserves of 250 billion cubic meters of water. This is equivalent to serving Kenya’s annual consumption for seventy years, without considering the replenishment rate. While tests have shown that the water is too salty for consumption, respectful water harvesting and proper treatment of water from the aquifers still offer huge potential to transform the standard of living in the region. Combined with significant discoveries of substantial oil and gas deposits in Northern Kenya, if well managed, this stands to offer critical socio-economic development opportunities not only to the Turkana peoples but also to Kenya as a whole.
Going Green – Kenya’s Geothermal Gas Wealth
Kenya has the proud distinction of being largest producer of geothermal energy in Africa and is rated as the eight largest producers in the world. The Great Rift Valley, known as “the cradle of mankind” and which is abundant with wildlife is also the site of this enormous green energy wealth.
Geothermal energy is a sustainable renewable source of energy and is obtained from the natural heat of the earth, especially in volcanically active areas. As part of its 2030 Vision to achieve middle income status, Kenya’s objective is to replace expensive fossil fuel based diesel generated power with 5,000 MWs of power from geothermal plants. This means that seventy percent of Kenya’s power will be derived from clean energy sources by 2030. According to statics from Kenya Electricity Generating Company (KenGen), geothermal power now accounts for 51 per cent of the nation’s installed power capacity and has already surpassed production of electricity from hydropower, another source of “green” or sustainable renewable energy. It is estimated that Kenya may have the potential to tap into 10,000MWs reservoirs of steam power in the Rift Valley Basin.
Kenya’s 280 MW Olkaria geothermal power plant, is the largest in the world and serves as a perfect example of how to balance environmental conservation with energy development.
Rare Earth Minerals and Niobium
Discovery of rare earth mineral deposits at Mrima Hill in the coastal county of Kwale as well as niobium deposits estimated to be worth $35 billion, make Kenya one of the largest rare earth producers in the world. Hitherto China has been the main producer as well as the main consumer of rare earth minerals. This discovery in Kenya gives the country an opportunity to tap into the lucrative global market for rare earth minerals and in time, even dominate it.
Rare earth minerals are valued for their interaction with other elements and therefore have several important applications in technology and manufacturing. For instance, the red phosphors from rare earth elements is what enables us to have televisions, computer, laptops and mobile phones with full colour screens. They are also vital for use in military technology especially in the manufacture of missile guiding systems, jet fighter engines, anti-missile defence, space-based satellites and communication systems. Rare earth minerals are used to make generators for wind turbines, MRI imaging, car engines as well electrical cars, and a host of uses in other industries. Niobium is primarily used to make steel stronger.
