[uhuru solutions]we’ll take you higher

Duke UniversityGrace Cao

Priyanka ChaurasiaDoug Helferich

Paul Holmer

[contents]

context

appendix

implementation roadmap

benefits

user experience

stakeholders and feasibility

agriculture sector overview

executive summary

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[context]

Ghana> One of the larger countries in West Africa

with a population of 23 million, but low representation in mobile phones (20%)

> Political stability, low inflation, stable currency, and low debt indicating potential for economic development

Global System for Mobile communications Association (GSMA)

> Wants an expanded market> Will implement initiatives that also have

socioeconomic benefits to developing communities

Key Questions> How do we apply GSM technology to bring

about sustainable development in Ghana?> In what industry should we devote our

resources?> How can we expand this program to

reach more people?

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[executive summary]

Establishing “VillageLink” kiosks in every village with mobile phones

Kiosks will call every morning to gather market and weather information

Farmers can use phones to then conduct transactions without “the middle man”

Our Concept: “Village Link”

Develop a pilot program in Southern Ghana to apply GSM technology to agriculture. This will create a profitable and sustainable outcome, as well as developmental progress. By creating an entrepreneurial kiosk system, our pilot program will eliminate middle men, empower farmers, and increase agricultural profitability.

The Opportunity:

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Double Bottom Line

Fiscal Returns

>Farmers receive 22% more revenue for their goods

>Increase Ghana’s GDP by $68.2 million

>Increased value of GSM technology in society

Developmental Impact

>Project Expansion

>Raising the status of women results in better healthcare and education choices

[agriculture sector overview]

Employment Breakdown by Sector:Ghana GDP Breakdown:

Rural farmers not connected to their

buyers at the market

Lack of communication,

wasted resources in travel

Unmet demand, surplus supply, and

inefficient prices

Ghanaian agriculture operating at 20%

potential

Key Problems in Agriculture:

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[stakeholders]

> Disseminate market information

> Train women

> Carry out local IT development and training

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Aanimus Fund Ministry of Finance

> Provide $22M for developmental impact

Association of Women in Development Experts

> Support network for women

> Provide cultural liaison

> Set up and fund existing infrastructure

> Ensure adequate service.

> Grameen Phone

founded in 1996

> Women borrowed phone kits and expanded rural cellular connectivity

> 2008: ~$1 B revenue and the largest telecom provider

> 255,000 village phones in 55,000 villages

Bangladesh Case Study:

[feasibility]

Applications to Ghana:

> Heavy reliance on agriculture

> Similar GDP per capita

> Already existing GSM coverage

> Matrilineal society in Southern Ghana

> Women control markets

> Have high level of autonomy

> Have control of money

> Assert authority in business realm

GSM coverage

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[feasibility][user experience]

> The pilot program will provide an easy-to-use interface

for farmers who are unfamiliar with technology.

> Women will provide the phone and market information.

They will guide farmers on use of the phone.

> Farmers, fishermen, and villagers will arrive at the kiosk

and compare the market prices with their products.

> Coordinate supply & demand and act as a price check.

> A transfer of goods will occur, resulting in the reduction

of a “middle man” and any lost profit and thus, an

empowered villager. 8

[benefits]

> Women’s empowerment: According to a 1989 study by Blumberg, women more than men are invested in education and healthcare, and make more informed decisions about issues that affect the well being of the whole household

> Better decisions for healthcare and education: better hygiene and less instances of infectious disease

> Market prep for further GSM rollout: Positive economic effects of cell phones --> increased demand of cell phones, generates buzz about GSM

> Reduction in air pollution through use of natural gas generators

> Sustainable development in future years

Soft BenefitsFinancial Benefits

> $4.4 million added to Ghana’s GDP from pilot program, up to $68 million total after full program

> Implementation leads to 22% increase in agriculture prices

> Market and price stability for farmers

[implementation roadmap]

Develop Coordination

Strategy

Distribution and training

Implement Pilot

Program

Review and evaluate

Present May 2009 June 2009 Month 1-18 After Month 18

> Determine revenue collection plan with ADME

> Coordinate data processing with 12 Tradenet representatives

> Advertise through AMDE

> Distribute phones to 60 women

> Implement training program in Accra

> Maintenance plan

> Determine locations

> Monitor execution

> Introduce generator technology

> Progress checkpoints at months 1, 6,12, and 18

> Monitor execution

> Expand program to health, banking, and energy sectors

> Increased GDP for future endeavors

> Regional decision to abort or continue

> Expand coverage to North Ghana

> Approach additional partners for expansion across Africa

Expand Offering

Act

ion

sD

eliv

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s

> Individuals subscribe and become entrepreneurs

> Market network streamlined

> Evaluate financial results to determine anticipated revenues for expansion

> Identify problems to be addressed on larger scale

> Reduced need for in-field support

> Effective advertising results in village interest and support for VillageLink

> Categorize payments and revenues for pilot program

> Identify partners and organization for easy expansion

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[appendix]

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[cost breakdown]

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[detailed financials]

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Months 0 3 6 9 12 15 18 NPV

Phones $ 9,000.00 $ - $ - $ - $ - $ - $ - $9,000.00

Generators $ 30,000.00 $ - $ - $ - $ - $ - $ - $30,000.00

Misc. $ 4,500.00 $ - $ - $ - $ - $ - $ - $4,500.00

Airtime $ 5,400.00 $ 5,400.00 $ 5,400.00 $ 5,400.00 $ 5,400.00 $ 5,400.00 $ 5,400.00 $36,422.92

Training $ 100,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $157,449.85

NGO Staff $ 108,000.00 $108,000.00 $ 108,000.00 $ 108,000.00 $ 108,000.00 $ 108,000.00 $ 108,000.00 $728,458.36

Tradenet Staff $ 72,000.00 $ 72,000.00 $ 72,000.00 $ 72,000.00 $ 72,000.00 $ 72,000.00 $ 72,000.00 $485,638.91

Tradenet Infrastructure $ 100,000.00 $ - $ - $ - $ - $ - $ - $100,000.00

Maintenance $ 6,000.00 $ - $ - $ - $ - $ - $ - $6,000.00

Costs $ 434,900.00 $195,400.00 $ 195,400.00 $ 195,400.00 $ 195,400.00 $ 195,400.00 $ 195,400.00 $1,557,470.04

Previous Phones per 100

New Phones per 100 Difference

Percent Change in GDP Addition to GDP

Pilot Program 32.479 32.504 0.02564 0.00013 $ 4,425,641.00

[other strategies considered]

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Health

>Health sector kiosks

>Communication between doctors and pharmacists

>Ease of emergency contact for patients and doctors

>Doctors can access individual health information quickly

>mHealth initiative

>AIDS in Ghana: 3.6% occurrence. Much lower than..

>Malaria accounts for 44% of outpatient hospital visits

>Opportunity to increase efficiency

>This model would be significantly more expensive and potentially not sustainable. Revenue from the agricultural kiosks combined with higher spending from female homemakers will result in health improvements.

Energy

>Coordinate transportation to save costs

>Powering cellular infrastructure through clean energy sources

>Member of the Renewable Energy & Energy Efficiency Partnership since 2002

>Goal to expand electricity to 800+ additional communities by end of 2009

> 5,000 megawatts of new power generation and improved transmission lines

>West African Gas Pipeline

>This model would not provide as much social impact as the agricultural sector and can be an additional implementation in the long term

Mobile Banking

>Use minutes as currency

>Saves travel cost and energy

>Ease of communication and checking of bank statements

>Improves fiscal responsibility

>Tried in many countries, successfully

>This plan would be better implemented after further economic development and an increase in personal wealth.

[sources]

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WOMEN AND INTERNATIONAL DEVELOPMENTBeatriz Armendariz de Aghion and Jonathan Morduch, The Economics of Microfinance, The MIT Press, June 2005. Chapter 7- Gender. pp.170-199.  Anne Marie Goetz, “Who takes the credit? Gender, power, and control over loan use in rural credit programs in Bangladesh,” World Development, 24(1): 45-63.

Bruck, “Millions for millions.”   The New Yorker, October 30, 2006.  <http://www.newyorker.com/archive/2006/10/30/061030fa_fact1>

TRADENET

 "ECAMIC Project - Using ICTs Innovatively To Promote Market Access For Farmers." Remixing the net for social change. Netsquared.org.

 WOMEN IN GHANA

1994 "Onions Are My Husband:  Survival and Accumulation by West Aftrican Market Women." University of Chicago Press

PREVIOUS MODEL IN KENYA           "By facilitating the flow of information between small-scale farmers and commodity markets, Adrian Mukhebi is increasing farmers’ negotiating power and improving rural food distribution and household food security." Ashoka Fellows. Ashoka.

GRAMEEN MODEL

Dr. Don Richardson, Ricardo Ramirez, Moinul HaqTelecommons Development GroupMarch 2000http://www.telecommons.com/villagephone/contents.html

Corbett, Sarah. “Can the Cellphone Help End Global Poverty?” The New York Times 13 April 2008

Boadi, Raymond et al. “Preliminary Insights into M-Commerce Adpotion in Ghana.” Information Development 2007, 23:4.

CIA World Factbook: Ghana, Bangladesh

Slater, Don and Janet Kwami. “Internet and mobile use as poverty reduction strategies in Ghana.” Information Society Research Group June 2005.