Source: White African Erik Hersman via Twitter 04 Aug. 2009
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Snippets from CreditSMS website:
In December 2009, CreditSMS will launch several pilots throughout Uganda and the Democratic Republic of Congo (DRC). Additional pilot requests have been submitted for Kenya, Sudan, and Sierra Leone. Uganda and DRC have 87% and 66% rural populations respectively, constituting a nascent market of as many as 76 million potential clients and consumers. By enabling MFIs [microfinance institutions] to reach and meet the demands of this market, CreditSMS will facilitate a form of 'bubble up' development whereby the income of microloan recipients will increase and the price of newly-available goods and services will trend toward market equilibrium. All pilot results will be made free and accessible via CreditSMS.org as they become available.- - -
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The Beginning...
By Ben Lyon
Published: July 14, 2009
Formal banks were hesitant to give "the bottom billion" loans because they didn't have collateral. Today, microfinance institutions (MFIs) fill that void by providing collateral-free loans to micro-entrepreneurs. In order to compete with traditional moneylenders, however, those MFIs had to charge exorbitant interest rates, mostly to absorb the high transport cost of making weekly visits to rural areas to collect loan repayments. With teledensity penetration and mobile commerce growing faster by the day, one has to wonder: why are loan officers still making the trip? Read More...
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Increasing revenue and impact through technology
By Ben Lyon
Published: July 22, 2009
[article written for Project Diaspora]
Aaron Ewedafe wakes up every morning at least one hour before the sun rises. Donning his satchel full of client records and repayment schedules, he hails the nearest okada driver and races into the surrounding countryside to begin a long day of loan group meetings. The trip from headquarters in Oshogbo to the village of Ojudo and back can take all day. Aaron rarely makes it home before nightfall. Altogether, Aaron spends 112 hours and 5,000 naira a week to manage 350 microloan recipients. His profit is negligible. Read More...
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The 'Phone as Cow' Model
By Ben Lyon
Published: August 1, 2009
Mobile phones are quickly becoming the hottest topic in development. Everyday, waves of new innovations are rolled out to connect 'bottom of the pyramid' (BOP) entrepreneurs to markets and information. But many advocates and implementers seem to neglect a fundamental question: What good are mobile innovations if BOP entrepreneurs can't afford handsets? According to Iqbal Quadir of Grameenphone, the answer is to issue the handset as the first microloan. Read More...
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