Did you know 1.1 people escape poverty every second? The World Poverty Clock uses data to countdown toward Global Goal #1, no poverty.
In this episode, we talk with Kris Hamel, Chief Operating Officer at World Data Lab. World Data Lab sources high-quality data and then makes the data come alive in the form of interactive tools, such as the World Poverty Clock. Here’s a podcast summary:
- 1:45 What is the mission of World Data Lab?
- 8:15 What is WorldPoverty.io, and why did you join World Data Lab?
- 13:00 Why did you choose Global Goal #1?
- 14:50 What is the current state of poverty and how can we remove it?
- 18:30 How does the tech work?
- 14:45 How does the business model work for World Data Lab?
- 27:50 What are some of your biggest 90-day challenges?
- 32:00 What do you see for the future of impact data in general?
- 36:30 How can someone get involved?
We’ll focus on how World Data Lab addresses Global Goal #1, no poverty. At worldpoverty.io you can see a real-time estimated number of people living in extreme poverty. Listen in if you’re interested in learning more about interactive data tools and how to help eradicate poverty. 💯
World Data Lab is a social enterprise operating out of Austria. They are set up to do 2 things:
- Income: How much do people earn?
- Demography: Where are people likely to live?
“We view these 2 domains as the two biggest questions people will ask themselves, so governments and development organizations will be interested in this data.”
That’s why the data is important. As World Data Lab sources high-quality data internationally, their job is to get the data peer-reviewed and then make it visual and simple to understand. Their poverty clock shows how many people are living in extreme poverty every single day. You can actually see animated little people escaping poverty, and how close we are to increase the “escape rate” from 1.1 people to 1.6 people per second, which is the rate that would have us reach Global Goal #1 by 2030: to reduce poverty from 8% to 6% of the global population.
“No one can credibly talk about trying to solve SDG #1 (no poverty) or any of the SDG’s if we don’t know the reality of the current situation or the likely future situation… we can design development interventions to try to solve what’s likely to happen. So that’s what our maps give you.”
Kris has worked in the development space for 15 years, and worked as a project economist at the World Bank Group. He did infrastructure projects like hydroelectric dams and finance projects to fund them. As he spent time around people with the influence and power over governments, Kris got interested in how best to make a difference.
He then moved to work with the UN on more grassroots initiatives to support marginalized people. Kris was able to see the difference between how to make an impact through large intermediary organizations, and how to make a difference from the bottom up.
He concluded that the real currency is through data “it’s most important give people access to data and help them use data to help them make decisions.”
Why Global Goal #1?
Here are the reasons World Data Lab chose to tackle Global Goal #1: No Poverty:
- It is a quantified, specific goal that can be tracked
- Tackling this goal will impact multiple other Global Goals dramatically
- We can use data on this goal, whereas other goals are more aspirational or broad and less quantifiable.
However, we’re not quite on track to reach the goal by 2030:
- Currently, there are 630 million people on the planet who make less than $1 per day
- By 2030 it will still be around 415 million. That is progress, but it’s far from eradicating poverty.
- Asia will eradicate extreme poverty as a region by 2030, which is huge. Extreme poverty is people making less than $1 per day.
- So, extreme poverty will be isolated to Africa. The good news is, we can target very specific areas of development as organizations with an aid budget.
“The thing we’re trying to do now with the poverty clock is to get to the next level… we want to tell you which countries in which regions need the most targeted aid.” The data becomes a critical decision-making tool to address poverty where it counts.
Kris sees the tech as a 2-step process.
- Advance the data and tech familiarity and usage as a 20th-century phenomenon – with visual data clocks and easy-to-read dashboards. They intend to use the data available now and design the best use cases to collect and show it.
- Gather data more efficiently. Move from surveys as the sole-source of information and use more reliable and granular techniques to gather information, like satellites and sensors.
Kris shares that gathering and showing data has been a political issue in the past. Governments want to allocate aid funding based on political preferences rather than where the aid was most needed. So as data collection and distribution improves, the politics become less of a block to accomplishing Global Goals.
When developing the poverty clock, it has been important to create a sustainable business model to keep the tech up to date and drive traffic to the website. So, the World Data Lab partners with organizations who find this data valuable.
In the next 90 days, the World Data Lab has 2 goals:
- To go deeper than just what survey data can provide.
“What we really want to do is go down to the village level. So our challenges are developing new methods to process satellite imagery data – teach machines how to recognize different attributes in a daylight picture.”
2. Develop games where people upload pictures and information that will crowdsource data.
“We’ve got the platform, now we can improve the credibility of the data and the visual maps we’re working with.”
What’s it going to take to get to 1.6 escape rate (people per second)?
Kris says that the biggest gamechanger for poverty actually isn’t economic growth. “Another place to look is human capital – the extent to which education can be focused on, and transitioning graduates with skills into jobs – that will have the most direct impact on poverty and infrastructure.”
To get involved:
- Read the methodology and send feedback.
- Go to the world poverty clock and drill down on the country, and check the numbers.
- Become an affiliate partner to represent World Data Lab locally, and help develop the next data tools. Contact them at firstname.lastname@example.org.
Chandler shares his top takeaways at the end of the show:
- The role of credible data in society. “It’s tough to know the real information and find legitimate numbers from credible sources about the Global Goals. I love the world data labs put the world poverty clock together and they’re going to expand to other SDGs.”
- As a social entrepreneur “I gotta say my favorite part about this tool is just seeing the real numbers behind these grand challenges.”
- Asking the right questions. As Kris mentioned, with the current solutions we have as a planet, we’re behind pace to eradicate extreme poverty off the planet by 2030. So, that means there’s a gap in the marketplace. Here are some questions to close that gap:
- Who are the top players?
- What solutions are out there?
- What are the top solutions that have the most leverage?
- What do they need to scale faster?
- What does your mind think about?
- How does the data change the way you see your business if you’re working to tackle global goal #1?
Spring has helped 700 entrepreneurs launch over 350 business globally. In this episode, we talk to Co-Founder and CEO Kieth Ippel to hear how Spring’s growth programs work.
Keith Ippel is the Co-Founder and CEO of Spring. Spring helps social entrepreneurs make an impact with their Incubator, Accelerator, Peer to Peer learning network, and their Funding Roundtables. Here’s what we cover:
- 2:20 How Spring started
- 3:30 Spring has worked with a LOT of entrepreneurs… how?
- 5:45 What does it take to start a social venture?
- 15:30 What are the top lessons Keith has learned?
- 26:45 Keith’s proudest company wins
- 37:30 Impact investing tips and the Global Goals
Spring is taking on Global Goal #8, decent work and economic growth. Listen in to hear some of the top lessons learned while working with these social entrepreneurs, and the key things to know as you look to raise for your social venture.
Keith shares what it takes to start a social venture, and what Spring looks for in entrepreneurs they want to work with.
“We’re looking for entrepreneurs who are highly inquisitive, sharp, have a trememndous amount of hustle, are coachable, are able to articulate their why, and understand that they’ll need to create some white space in their industry in order to create growth. Our heart is really for people who want to change the world… it requires a deeper resillience to get impact-driven products and services to the world.”
How Spring’s Programs Work
Spring’s programs are set up to work locally in the cities they have a presence in, and they are headquartered in Vancouver.
- Incubation: Pre-launch, idea validation, setting the path to launch. 6-12 weeks. Guest speaker and teaching heavy, classic models.
- Acceleration: Post-launch, helping people prepare for scale and capital raising. 3-6 months. Mentoring and capital raising education.
- Funding Roundtables: Educating impact entrepreneurs to get the check.
Finding Success in Fundraising Rounds
Kieth shares with us that the biggest gap they are trying to fill for social ventures is targeting the right impact investors.
“Our entrepreneurs are good at target marketing for their customers, but not so much for investors. Most investors have criteria for who they are looking for.”
The rest, he says, is helping them get the paperwork right. How to create a cap table, how to break down and manage a due diligence folder, how to do a negotiation and ultimately how to get 8-12 investors to sign the same deal.
Should We Pre-Sell? Or Go for Funding?
“That is the million dollar question!” Kieth says,
When it comes to raising money for our business, there are several ways we can go.
- Our own back pocket
- Friends and family
- Selling shares of your company
Selling shares of your company is expensive, especially if you don’t have revenue or credibility data. Kieth advises to get all of that data together to prove that you can get users, understand your key metrics, grow a team and company, and prove your model. “That will make it easier to find the right investors for you, too,” he says.
Top Lessons from Working with Social Entrepreneurs
- The paperwork is universal. These are the four main ways investors fund a business.
- Common shares
- Convertible notes
- Safe agreements
- Preferred share deals
The entrepreneur should be agnostic to what type the investor chooses. Each one can be great or terrible for a company, depending on how the terms are set up.
2. Be cross-border fearless about finding the right investor.
“You’ve said the most important thing: raising money is a business. It requires a sales process. Run it like a business. Run it like a funnel.”
He explains, “There’s a top of funnel, there’s stages that you go through with gates, you’ll need to ask for 10x what you need at the top of the funnel in order to get what you need at the bottom. And frankly, investors value being treated that way, because it increases the communication and efficiency of the deal.”
Better to Build an MVP or Fundraise Right Away?
“The more that you can prove, the more confidence you’ll have to go raise as an entrepreneur.”
At the end of the day, Kieth says, if you’re working under a million dollars of revenue then the investor can only invest in you. After the first meeting, all other follow up meetings will be all about
- Can I trust you and your team with my money?
- Are you asking smart questions?
- Are you adaptable?
- Are you showing progress?
So, the more that you can push to MVP, they more you’re showing that you and your team are capable, adaptable, and pushing toward the finish like. You have to display your resilience and perseverence towards that. Sometimes a landing page with an email signup to get a million interested buyers!!
The No-Fail Investor Trust Plan
Kieth says 50% of the preparation is for the first meeting. The following 50% is planning for the 3-6 months after the first meeting to the next meeting, in order to show maximum progress and exceed your investors’ expectations.
So, plan for your first meeting with an appropriate deck and sales pitch training. Then, plan your growth stages between the first meeting and second to prove your progress.
And, how can you get to the MVP as cheaply and quickly as possible? It’s not about how to do it all, just get to MVP with less time and less money and you will succeed. The more money you have leftover, the more time and margin you have to adapt.
“Apple computer started in a garage with 2 guys. If they can do that, you can.”
Which companies is Spring Super Proud of?
- Social Nature: transforming the way people get food.
Anna was lazer focused on getting her ideal investor, and the 3-6 month plan to keep investors engaged and invested.
2. Nada: the zero-waste grocery store.
This grocery store has an underlying platform that could enable all grocery stores to strip all consumer plastic waste. They were strategic and balanced their raise across multiple platforms. They took loans, won a contest, did a killer crowdfunding campaign, and raised several good investment rounds as well.
“The best rounds with the highest investment have all been female founders. They are incredible at preparing ahead. They know their stuff when they go in. And they’re more natural in sharing their impact WHY. For all the female founders listening to this, go for it. And here’s a challenge for the men: take some best practices from the women around you.”
Another example is Emily with LegWorks, who was fearless about being cross-border with her investors and being prepared for rounds. They are now able to sell their products globally.
Growing Impact Investing
“Human nature is hard-wired to make the world a better place.”
Kieth says what works is to get rid of the term impact. Smart investing isn’t some exclusive thing to do with money, Kieth says, so to change the terminology will lower the entry and remove the cognitive bias to make impact investing mainstream.
Kieth emphasizes telling the success stories of impact companies and investment rounds to show the world of investors and partners that the “impact sector” is not only viable but worth being personally involved as a player. Telling the success stories captivates the market who still thinks traditional philanthropy is the only way to make impact.
Impact Investing and the Global Goals
In order to really tackle the Global Goals, Kieth says, it will take more collaboration. Most of the companies Spring works with have no idea how many countries and markets they could impact, if they were fearless about going cross border for customers and partners and teams.
“My encouragement for investors is to know that cross-border deals are going on every day. Set aside a part of your portfolio for Cambodia, Belgrade, Canada… wherever you find values-aligned opportunities. That’s how we’re going to change the world.”
- Your investors are customers as well. They need to align with your values because they’re buying the future potential of your company.
- Build an ideal investor avatar, and be ready to turn down investors who are not aligned.
Thanks for reading and listening – please COMMENT with the biggest questions you’ve had about starting a social venture, and check out spring.is to see more of Spring’s awesome impact companies.
“If you’re doing something for me without me… it’s not for me” In this bonus episode, Chandler shares six resources for social entrepreneurs to know what’s going on in the world – so you can start solving problems that matter now.
As social entrepreneurs, we believe that we can use business as a vehicle to solve problems.
One of my biggest takeaways from Kenya is that you have to go to where you want to solve a problem to see it from the ground. If you don’t have the chance to go… You better have really good data about the challenges. I’ve found that’s pretty tough! So I started digging, and I found some amazing resources and thought I’d share my favorite top six with you.
- 2030 Agenda for Sustainable Development
- The SDG Indicator Handbook
- UN Stats List
- SDG Data Hubs – Explore Geospatially Referenced Data by Goal
- UN Data Forum Blog
- The UN Global Pulse
Listen in to hear why these six are such game-changers… and to source data on the problem you’re solving!
Maybe you’re excited about impact and trying to figure out what business you want to start, or maybe you’ve been in the game for a while and have had several social ventures. So we’re problem solvers and we see these global goals as opportunity to integrate those that we want to impact into our business model. The bigger our business grows, the bigger the impact.
“if you’re doing something for me without me… it’s not for me”
It takes really good data to effectively address a challenge. And I’ve found that’s pretty tough. Finding real numbers about these grand challenges can outdated, biased based on the source, etc. We’re talking about every country, 17 goals, 169 targets, and 232 indicators (which are the specific metrics they measure).Here are six resources you can use to find the data you need.
The 2030 Agenda for Sustainable Development provides a global blueprint for dignity, peace and prosperity for people and the planet, now and in the future. And we’re only three years in.
I’d highly recommend checking out the 2018 progress report! It’s on unstats.un.org You’ll find every global goal on here with progress metrics. Are we ahead of pace or behind pace? Which ones are Goals are going really well and ahead of schedule and which are behind?
For example, in the least developed countries, the proportion of the people with access to electricity more than doubled between 2000 and 2016.
However, the proportion of undernourished people worldwide increased from 10.6 per cent in 2015 to 11.0 per cent in 2016. This translates to 815 million people worldwide in 2016, up from 777 million in 2015.
These are just a few stats that scratch the surface. Go check out your favorite global goal and see the progress.
The global indicator framework was adopted by the General Assembly on July 2017. It’s goal is to provide a solid framework for how we will go about measuring progress of the goals to inform policy makers and ensure accountability.
These efforts are especially important in identifying those left furthest behind, since data are increasingly disaggregated by income, sex, age, race, ethnicity, disability, geographic location and other characteristics. This type of detailed information is the basis of effective policies.
Tool #3: Inside the SDG Indicator Handbook | UN Stats List
I found a great handbook that breaks all of these indicators down to make the progress very easy to understand. The handbook defines the indicator, shares how they gather data for the indicator, and shows references. For my data friends out there, you can even see the formulas they use! 😍
Yes. I’m excited too.
- Indicator 1.1.1: Proportion of population below the international poverty line, by sex, age, employment status and geographical location (urban/rural)
- Target 1.1: By 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a day.
- Goal 1: End poverty in all its forms everywhere
If that isn’t cool enough, this database has an open API. The database, maintained by the Statistics Division, was released on 20 June 2018 and contains over 1 million observations.
Tool # 4: Explore Geospatially Referenced Data by Goal | SDG Data Hubs
This site breaks down all the indicators by location to see progress. They have maps and other data visualizations and analyses, and easy to download in multiple formats.
And, you can also see by country! Ireland, Mexico, Philippines, and the state of Palestine.
This blog is updated constantly with new info on how the UN is gathering data for the SDGs. For example, one great article was centered around the topic of how can we use mobile network data to integrate into the global data platform to better understand the progress towards the SDGs? This is particularly fascinating because the amount of people who have access to the internet is growing so rapidly.
With more than 5 billion people connected to mobile services in 2017, and projections reaching 5.9 billion by 2025 (71% of the world’s population), we can see the mobile phone sector is increasingly important in achieving the SDGs.
And still… can we use data to make decisions with over half of the current population not online?
Global Pulse is a flagship innovation initiative of the United Nations Secretary-General on big data. Its vision is a future in which big data is harnessed safely and responsibly as a public good. Its mission is to accelerate discovery, development and scaled adoption of big data innovation for sustainable development and humanitarian action.
To this end, Global Pulse is working to promote awareness of the opportunities Big Data presents for sustainable development and humanitarian action, forge public-private data sharing partnerships, generate high-impact analytical tools and approaches through its network of Pulse Labs, and drive broad adoption of useful innovations across the UN System.
So if you’re like me and a data nerd, you’re going to spend a TON of time of these sites. My goal for you is that it makes you curious.
How can you use this data to better understand the people you want to impact. And to get what’s happening in your market?
Or if you’re already hyper zoned on the problem… What impact are you making on a global scale?
Show us with the data.
In 2016, 42% of Kenya’s GDP was transacted on the text-to-pay platform M-Pesa. So, without bank accounts, wifi, or credit cards. In this episode, we have the CEO and Global Managing Director at I-DEV International, Jason Spindler, to talk about how M-Pesa works.
- Jason’s background and how he got into the business in Kenya
- How M-Pesa works without internet
- How M-Pesa impacts the economy
- Strengths and weaknesses of mobile money
- Factors of the success of M-Pesa
- The timeline as M-Pesa scales
We talk about M-Pesa’s impact on Global Goal #9, innovation and infrastructure. Find out how simple solutions can transform an emerging market in this episode.
[02:30] “I’m the one of the Co-founders and the managing director of I-Dev International. We started about 10 years ago. The core of what we do is help high growth businesses in emerging markets grow and scale.”
I-Dev focuses on working with SMEs across their target markets. Our global headquarters are in San Francisco. Our Latin America headquarters is in Lima, Peru, and our Africa headquarters are in Nairobi, Kenya where Jason is based. The business landscape in Nairobi has only evolved in the past five, maybe 10 years in East Africa.
The Kenyan Ecosystem
[05:04] The Kenyan ecosystem is unique, Jason says, because almost everyone you meet here is starting something. But in Kenya, they are actually they’re immediately out rolling it out and they’ve got their first customer traction.
There’s very little that’s just in the idea stage for the people who do make the move out here. The locals who do decide to start something are actually getting it done.
[08:10] “Everyone in Kenya uses mobile money. I think it’s something like 90 percent of all adults use it. And that’s been the case for around 13 years now. ” Jason says.
“I saw a stat a while ago where one in five mobile money transactions globally happened in Kenya, and that’s in a world where WeChat is very pervasive. India is moving to mobile money, too. Now, we’re helping Peru launch their mobile money platform.”
So, so why is everyone using it and what’s it all about?
MPesa mobile money in general has a couple of different forms and versions. We’re not talking about digital wallets like Apple Pay or Google Wallet. Those are for people who already have online capital. They’ve already got their banking online, they’ve already got their money online. And that just consolidating your analog, your credit cards and your money into digital.
[09:27] “In this day and age it’s kind of silly for us to use cash or credit cards, the physical plastic. And if you think about it, the physical plastic that you use is just an analog representation of what you have in your digital account. So why do you need to go and take something from your digital bank account or digital credit card statement and use a piece of plastic, a physical thing, to just complete a transaction that will go into someone else’s digital account? It doesn’t really make a lot of sense.
So that’s where the world is moving – away from any physical forms of money and toward totally digital currency.
What is mobile money in the context of emerging markets?
[10:09] It’s a tool for people who don’t have accounts.
Two to 3 billion people on the planet or nearly half of the population don’t have access to digital currency, meaning digital bank accounts. They’re not online with their banking. So that means if I want to buy something or pay or something, I have to physically hand someone the cash to do it. Now, think about all of the transactions that you do every day, how often have you walked into the store to buy a microwave, a refrigerator, you know, almost anything and paid in cash?
That is a world that two to 3 billion people on the planet had been left out. They’ve had to physically walk in and hand someone cash. That means they can’t do long distance transactions.
“So if I’m a farmer and I’m trying to send my crop to Nairobi, the capital and I live several hours away I may or may not know the person that I’m sending my crop too. I have some hesitancy about putting that crop on a truck and shipping it. Let’s say it’s coffee and I’m shipping it to the merchant that I’m trying to sell to because I’ve got no way of making sure that they’ll actually pay me that crop needs to arrive. They need to inspect it. Then they need to give someone else the money to bring to me. It’s needing to be physically present for transactions that slows down these economies.”
Mobile money is really addressing that. It allows the people that don’t have access to credit, and don’t need access to a bank to make payments.
Tech Literacy and A World Online
Chandler says, “I think the part that really blew my mind the most, Jason, was that I learned that you could buy a “dumb phone” for 10 bucks and you can use MPesa to send money via text.”
Jason says, “I do believe that we need to add an extra dimension to literacy. I think that in this day and age if you don’t know how to get online and access things online, either through a smartphone or through a computer, most people in the emerging markets and at the base of the pyramid are leapfrogging laptops and computers and are actually going straight to smartphones. That’s how you have 3 billion people are getting onto the Internet for the first time and are staying on.
But if you’re, if you don’t know how to do that, I think that’s functionally illiterate.
So, not only do you need to be able to read, write and do basic math, but you also need to be able to access things online. So there is still a significant percentage of the population that doesn’t have access to the internet on a regularly recurring basis, which is a critical factor. If you don’t have access to the Internet, how are you going to do online transactions? E
Even if you do know how to get online, the mobile money that I’m speaking of enables you to send money using a text feature on the phone.
Disrupting Banking with Mobile Savings
[14:33] You’re able to send people money. People in Kenya use it for everything from buying one cigarette or buying a coca cola. Here, it’s also become the country’s largest savings account. So you can have loaded onto your account up to a thousand dollars.
I’d actually like to see that limit go up. I think the banks have probably been a big pressure on the government to put that in, that you can keep up to a thousand dollars in that account for most of the population in Kenya. I would say that for the majority of the population, that’s a decent chunk of savings. If they do hit that thousand dollars, MPesa has become their bank account or savings account. And this is where we’re seeing a ton of disruption. MPesa has become the largest banker in the country. It’s hosting more transactions and more volume than any of the other banks in the country.
Cashless Transactions and Data Collection
Next, Jason talks about the 85%+ of the commerce in Africa that happens offline via vendor transactions. Companies like Twigga are simplefying the transactions in that market by placing them all on their app/
[19:33] “There has been no data on that population at all, but they’re representing 85 percent of the volume of the very large market. So Twigga Foods recognized is that they can control a small part of that market. They started with bananas and in nine months they became the largest buyer and seller of bananas with a few thousand customers. They basically buy from the farmer and sell to the kiosk owner right to their doorstep. They built a hub and spoke model. They own the entire logistics network from farmer to kiosk retailer.
So now those kiosk owners open their app and they say, I want five kilos of tomatoes, five kilos of bananas, six kilos of onions. The next day the order gets delivered to their doorstep at a significant discount to what they can buy in the traditional market. They’ve been able to do this because they’ve cut out a ton of waste and loss, product damage, etc. Throughout the supply chain. Now here’s where it really gets interesting and where mobile money comes in because all of that’s happening online. Twigga is a completely cashless business.
They pay the farmers with mobile money for the product. They have access to an entire two to 3 billion people that have lived almost entirely off the grid, around the planet.
One of the really interesting things about mobile money is that it allows businesses to leverage the data that they can collect in realtime, not static data. Survey-based data. So I call and ask you questions, you give me answers that you think I want to hear and we all go away and say good job.
So for example, within Twigga’s network, one of the areas that they can move into with this data is to start saying, ‘Hey, you’ve been a great customer for six months. Why don’t we automatically provides you with working capital financing? You want to expand your store, we’ll give you a small loan to be able to do that.’
Lending and Insurance
[24:26] Then, you’ve got the customer automatically on the system, you’ve got credit analysis and history that’s pretty accurate for that customer. And you can automate the lending process. So your cost of customer acquisition, your risk profile for acquiring customers has come down dramatically. Your default rate is coming down because they don’t want to default on their payment. That means they’re defaulting on their distributor. So you essentially completely disrupted the lending on the street for these small businesses. And that’s just one area. Now you’re starting to develop much more accurate data on these populations that can then be turned into insurance product for them as well.
Expanding to more emerging markets: How long will it take?
[34:37] “I think we can actually take the 12 to 13 year time frame that it took to get Kenya to where it is and shorten it to five or six years to build a similar ecosystem,” Jason says.
[34:46] I think there’s a couple of factors at play. it’s regulatory environment. So the banks either don’t want it to happen or they wanted to control it. There’s a big push and lobby for that from the banking side to want to roll it out. Similarly, telecom companies want to have the monopoly on MPesa too.
[35:50] So there’s two large political factions that are also large industries. They have strong political networks and inputs that are battling it out. That’s caused a lot of the issues.
MPesa’s use case is for someone who’s not online right now, who is not doing online banking. MPesa will really be relevant to them and really, really change their life. They’re not a first adapter. So they need a real reason to use mobile money. They need it. It needs to make their life better or they won’t use it. So use cases, whether it’s energy, whether it’s you’re paying through mobile money, whether it’s your customer and you’re on it because your distributor requires you to use it for transparency… The use cases are really critical to driving volume and driving consumer adoption.
[37:06]So to drive adoption in a new ecosystem, you need to go into a market when you can build out those use cases in the ecosystem that makes it relevant for the local population. Those companies are being developed just now, here in Kenya. They’re getting ready to start scaling in a massive way. Then the Kenya model will work in Nigeria. It will work in Mexico City and in Lima. But it’s just in the early days of development. It’s the early adoption, like when Google was just getting started and it took five, 10, 15 years for that to get going.
Facebook and the future of mobile money
Chandler talks through his takeaways:
[43:32] My biggest takeaway was thinking about the role that mobile money plays in an emerging market. If we were to take a look at global goal number nine and talk about creating resilient infrastructure is for our economies. I believe that mobile money is a vital role in an economy to have a secure, fast and cheap way to transfer money for goods and services.
If someone is looking to start saving for the first time ever, you don’t need credit, you don’t need a bank account. It is location independent and you can start saving in a financial first step. This provides reliability and efficiency in life and in business in general.
It allows you to start planning for the future ahead so you’re not just surviving from day to day. You can start surviving and thriving from week to week, month to month, et cetera. I believe if we’re going to have amazing innovations coming into emerging countries like drones or self-driving vehicles, we need to be able to have the basics for people to transact, which is exactly what MPesa has proven out.
[44:50] “What happens when Google or Facebook really tries to roll out their own mobile money and does it in emerging countries? They already have the trust. They have the global network. They could reach billions. I believe this is a super interesting landscape for those that are looking to enter into the mobile money game and if your business is looking to expand globally.
- Wow, the role of mobile money in an emerging market is huge!
- Global Goal #9: It’s vital in an economy to have a secure, fast, and cheap way to transfer money for goods/services. Not to mention a safe way to save money.
- And loved the challenge from Jason here… What happens when Google or Facebook really tries to roll this out mobile money?
- The Mobile Money Landscape: If your business is looking to expand globally, you’ll need to ask:
- How are we willing to take payments?
- How do we plan to take payments depending on the country we go to?
- Are we flexible?
- Is it easy to integrate?
- Can we adapt as this landscape changes?
Those are the top takeaways. Want more? check out resources at idevinternational.com
The average age in Uganda is 16 years old, and the unemployment rate is over 60%. Nationally, 400,000 people graduate university each year in Africa while only 80-100k jobs open up! In this episode, we will talk about the online platform that closes that graduate-to-career gap.
We talk with Eddy Vaisberg, the COO of Fuzu. Fuzu is a career platform where 500k active users can discover their talent, get the skills they need to fully unleash their potential and find a career they love. We will talk about:
- 3:00 The unemployment challenge
- 7:30 How Fuzu aims to help graduates and employers
- 26:30 The technology behind Fuzu
- 46:30 The business model
- 48:45 The global goals they are tackling
Find out how Fuzu tackles 3 Global Goals: Global Goal #8, decent work and economic growth for all, Global Goal #10, reducing inequalities, and Global Goal #1 of taking on poverty through the power of jobs. Listen and enjoy!
The Unemployment Issue
Eddy explains the numbers of the education to job-entry gap.
“What you’re looking at is a bunch of young people coming into their own, looking over the next 5-10 years to start building their careers to push the continent forward. But at the same time we don’t have the ecosystem to support them yet. What you see is this great push toward education… however, unfortunatly, the quality of that education is not at the level of the States, or Europe, or Asia. So when they come out of higer education they are not ready to jump into the job market. 70-80% of these graduates are not ready to contribute. And there’s nothing that bridges that gap between education and unemployment.”
Here are some of the stats:
- Kenya: 40% unemployment for the last 3 years of graduates
- Uganda: 65% unemployment for recent graduates
- 400k people graduating in Uganda, 1% of the population per year. But only 80-100k jobs open up each year.
Eddy talks about the infrastructure in the US, Europe and Asia to get graduates into jobs, like mentors, peer groups, career counseling, and internships. Africans need further training before they can even go into an internship, and African companies are only accepting 3-5 years of experience.
How Fuzu Closes the Gap
Here are some of the initiatives happening to help Africans close this employment gap:
- Large companies like Microsoft running intensive trainings
- Government and organizations looking at this problem intensively
But even with many initiatives, the scale of the education-to-employment gap poses the biggest problem.
“750 million people will enter the job force in the next 25 years. These initiatives can’t provide the tools and solutions that can solve this problem across the millions. For us it’s about how we support millions of aspiring junior professionals with tools, career advice, and mentorship to address the problem for Africa.”
Fuzu is intended to be a deep, personalized, catered technology experience to enrich the job seeking journey and unleash the potential of millions of graduates.
A Digital Career Companion
Here’s what will make Fuzu stick:
- Hosting the best job openings
- Contributing the best career content: how to write an email, how to do an interview, how to drive a discussion or lead a meeting
- Supplementing the experiential knowledge that is lost in multiple-choice-test style education
Fuzu and the Global Goals
Eddy emphasizes equal opportunity as an important focus for Fuzu (Global Goal #5). In oder to address the multiple Global Goals they care about, Eddy says that the platform must be the most engaging and opportunity-rich platform experience available.
“We’re trying to leverage all of the analytics to drive a merit-based hiring approach. In order for us to drive our mission, to have graduates and junior professionals utilize their potential and become a leader in the continent by providing the best job opportunities. So what we do is we give employers access to their personality, their talents and core competencies, and their experience.”
The user experience and analytics on Fuzu addresses 2 problems:
- Eases the unknown element of recent graduate hiring
- Mitigates the referral network approach of hiring – which is exacerbated by the tribe network and gender biases in Africa
“This way we force our employers to hire on merit, so everyone has an equal opportunity to get a great job.”
How It Works
- The employer creates a job search with detailed skills and personality requests
- The platform scrapes all 500k users to find matches
- Fuzu reaches out to the top 1000 potentials for the job by email
- Users apply through the platform
- The platform ranks applicants from 1-100 based on the accuracy of matching
- Employers review applications and select a new employee
“You don’t have bus drivers applying to be your accounting manager, or 5-year marketing managers applying for entry level customer service positions.”
The Business Model
Fuzu makes the platform accessible to anyone to use the tools and take the courses. For the employers, the platform has a freemium model, and for applicants, there are certain paid features like creating a CV.
“We don’t want to limit anyone from dreaming, growing, or being found. Most of the monetization is on the employers side, where we have large companies on an annual contract to ingrain us into their hiring process, and manage the hundreds of hires they engage per year.”
Here are Fuzu’s main points of focus to scale:
- Market expansion, to disrupt and enter a market ready for a new solution. This means going into West Africa, South Africa, and other areas. “You can only enter a market once. So we’ve got to make a big splash,” Eddy says.
- Enriching the experience to become the #1 career companion and CRM.
“We see Fuzu as a tool for building the economies and create more people that are ready to make a contribution. It will become a self-fulfilling cycle of job creation… and we want to impact and touch as many people as possible.”
- Wow, the education system isn’t giving real-world skills! How do we decide how we’re educating youth?
- What is it going to take to change the education system?
- We can tackle poverty and economic development by equipping young people to stimulate the economy from the bottom up.