Why does the M-Pesa work so well in Kenya? Do you think that such a system could work in your country? Please state your reasons. As mobile phones, Internet access, and tech hubs differ greatly throughout the African continent, how can these key pieces of technology be made not only more accessible to patrons, but more affordable? How can Konza Technology City make a positive impact in Kenya? Are there any pitfalls in this tech city, in your opinion? How can regulating technology improve society?
Why does the M-Pesa work so well in Kenya? Do you think that such a system could work in your country? Please state your reasons.
Kenya is a developing country, which means that there is still huge room for growth. Many citizens of Kenya had no access to banking before M-Pesa appeared, which is one of the main reasons why it works so well there. According to Ndung’u (2017), this mobile banking system made it possible for everyone to access banking, transfer money, and create virtual savings accounts. Therefore, M-Pesa promoted innovation, and with government support, it was secure enough and reached about 75% of the population. To be honest, I feel that this system was so successful in Kenya because it came there at the right time to provide a service that was highly desired. I live in China, and M-Pesa would not work so well here. First of all, there are already several national banks that allow cardholders to use secure mobile payments. Secondly, China is very strict about all services that work with money, and it is nearly impossible to join this market.
As mobile phones, Internet access, and tech hubs differ greatly throughout the African continent, how can these key pieces of technology be made not only more accessible to patrons, but more affordable?
To make mobile phones, Internet access, and tech hubs not only more accessible but more affordable to people, I think that the government needs to think about supporting product manufacturers. Government companies, as well as satellite and telecom ones, should create partnerships to make the most of communication services and technologies, and to make them more affordable. To lower costs, tariffs can be leveraged, and competition should be created.
How can Konza Technology City make a positive impact in Kenya? Are there any pitfalls in this tech city, in your opinion?
First of all, such an initiative will create jobs and attract different kinds of investments. According to Ventures Africa (2013), this Technology City is going to be a solution to fight the high unemployment rates and combat poverty. To support start-ups and businesses, Konza is expected to educate people, focusing on their future needs. In fact, the Technology City will help Kenyans keep up with the rest of the world in terms of technology.
However, there may be some pitfalls, too. First, even though technologies are ruling the world and are developing and advancing very fast, we should keep in mind the development of other sectors, too. Second, especially because technologies update frequently and we need to keep up, it can be an extremely expensive project. Finally, as we learned during our first week this term, according to the World-System theory, the most profitable economic activities are concentrated in the core states, while exploiting peripheral and semi-peripheral regions. Speaking about Konza, it seems that this city can concentrate most business activities and technological development, while the other cities will experience a lack of it or changes in prices. However, as soon as this city is located quite far from the capital, it makes it not so interesting for professionals.
How can regulating technology improve society?
Even though many people feel that regulating anything is a way to restrict things and make them less affordable and accessible, it is not as simple as that. First of all, establishing standards and improving them leads to the fact that only better technologies stay in the market, and that services become better quality. Therefore, the worse ones do not survive and leave the marketplace. Thanks to the regulations, consumers become protected from bad quality and fishy technologies. This improves society by improving the quality of citizens’ lives.
References
Ndung’u, N. (2017). Regulatory environment and technological innovation in Africa: Any tension? (Chapter 3). Foresight Africa 2017 Report. Brookings Institute. Retrieved from https://www.brookings.edu/wp-content/uploads/2017/01/global_20170109_foresight_africa_chapter-3.pdf
Ventures Africa. (25 September, 2013). Building Africa’s silicon savannah. Retrieved from https://venturesafrica.com/konza-techno-city-africas-silicon-savannah/