Blog Day 2008

Blogs 1 Comment

Written by: Brian Herbert

Blog Day 2008

It’s Blog Day 2008! The way this works is you post five blogs and write a little bit about each one. Since I’m new to the African technology blogging scene, I’m not going to have many recommendations pointing to blogs with exactly the same subject matter. Either way, I hope some of these blogs are new to you! I’m also going to use this opportunity to start building out my blogroll on the right hand side of the page.

  1. White African - Hailing from Kenya, Erik Hersman is one of the most popular tech bloggers in Africa. His blog is also one of the things that inspired me to start blogging about tech in Africa.
  2. Kenyan Pundit - Ory Okolloh, another Kenyan blogger writes short, witty posts that will keep you both entertained and informed about issues involving Kenayns and the government there.
  3. Social Media Explorer - Closer to home, Jason Falls is a blogger covering anything and everything in the world of social media. It’s definitely worth a read.
  4. Evan Sims - Evan’s blog touches a bit of everything in tech from gaming to reviews of products ranging from hardware movies. He’s also a good friend of mine and the guy I became a geek with spending endless hours in Worlds Away and Ultima Online.
  5. Your Blog - Tell me about your blog. I’m looking for something good to read!

I hope you enjoy giving each of these blogs a look!

PayFast - South African Payment Processing

South Africa, Startups 6 Comments

Written by: Brian Herbert

PayFast

PayFast is a new startup based in Johannesburg and is a direct competitor with PayPal.  Essentially, PayFast is a solution for South Africans to purchase goods online, send and receive money using electric funds transfer (ETF) or a credit card.

One of the major benefits for using PayFast is that a credit card is not required.  At least in Kenya, many people do not carry credit cards which makes it difficult to conduct business or purchase products online.  If a South African has a bank account, they will be able to hook into this service and initiate transactions with merchants that utilize PayFast.

There are three different types of accounts.  With a personal account, the limitations for users are they will not be able to accept credit card payments or set up an ecomerce store. Also, all fees are waived for personal accounts.  The next level is a premium account which is like the personal account except users with premium accounts can accept credit card payments (see edit at the end of this post).  Finally there is a merchant account which allows users full access to the service.  All accounts follow the same fee structure which is anywhere from 1.4-2% of the transaction.

Services like these are important for the growth of the e-commerce sector in Africa. However, there needs to be a broader approach with services allowing users to charge their accounts with methods other than a bank account.  I will be examining a service by Safaricom in Kenya which offers another alternative.

Check out PayFast here.

8/31/08/ Edit: Richard Catto of Cape Town News brought to my attention the fact that PayFast has yet to enable credit card processing. This is a critical feature for a system like PayFast so it will be able to adopt new users easily. For instance, when purchasing a product from a website that uses PayPal, you do not need to be a PayPal member if you use your credit card to initiate a transaction. According to the PayFast website, this feature is coming and will be a welcome addition to their service.  Even thought accepting credit cards is an important feature to launch with, PayFast is young and has an opportunity to improve on its offerings.

Vision 2030

Kenya No Comments

Written by: Brian Herbert

Courtesy of the CIA World Factbook

Rising from the ashes of post-election violence in January this year, the government of Kenya has come up with a plan to improve economic development over the next couple of decades. Vision 2030 is a forward looking plan to increase the already high gross domestic product (GDP) growth rate of 6.1% to 10% per year starting in 2012. Ultimately, with Vision 2030 put to action, Kenya will be propelled into the ranks of other high-growth countries like Singapore, Dubai and Malaysia.

These ambitious goals will be obtained by focusing on the improvement of a number of areas from security to energy and infrastructure to science, technology and innovation. What exactly does this mean for technology in Kenya and East Africa as a whole?

Infrastructure is one of the major areas slated for improvement under the vision.  This is going to include making significant improvements to roads, railways, seaports, airports, water, sanitation and telecommunications.  Telecommunications aside, improved transportation and more reliable shipping methods will reduce risk significantly for both corporations and individuals who choose to start a new business.  The benefits of having a dependable telecommunications network are obvious.  The ability to access networks virtually 24/7 is paramount to the success of any economic growth plan.

Currently in rural towns and villages, the Internet can be difficult to come by.  Outside of urban areas like Nairobi and Kisumu, getting to an Internet Cafe is a challenge because they must rely on questionable satellite internet service providers and they are simply located few and far between.  This improvement in infrastructure will need to encompass smaller towns like Ugunja, Kitui and others for Vision 2030 to be a success.

Something that has helped many Southeast Asian countries like South Korea and China has been their ability to provide services to more developed countries like the United States, Britain and others.  With reliable telecommunications, Kenya will be able to develop a Business Process Offshoring (BPO) sector. By 2012, the plan calls for at least 7,500 BPO jobs to be created, increasing the GDP by KShs10 billion (roughly $145 billion US).

The BPO project will be sustained by attracting top multinational companies that will in turn boost confidence in the ability for other companies to do business in Kenya.  The plan also introduces the establishment of a designated BPO park in Nairobi that will be supported by world-class facilities and the most reliable infrastructure.  Because of these efforts, more companies will consider establishing offshore operations there.

Technological solutions touch virtually every aspect of Vision 2030.  They include the utilization of communication technology to improve security, exploitation of clean geothermal energy for power, training citizens in technical fields and creating incentives for research and development.

Vision 2030 looks like a great plan to improve the lives of Kenyans and help Kenya to maintain its status as a champion in East Africa. It will be interesting to watch how well the Kenyans implement their grand vision.

Karibuni!

Uncategorized No Comments

Written by: Brian Herbert

Hello everyone. I’m just getting things started here so please don’t mind the dust.

Expect to see topics here related to technology in Africa and elsewhere around the globe.

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