Technological innovations, particularly in digital and mobile platforms, have boosted inclusive growth in developing African markets over the past several years.
Inclusive growth is defined as economic growth and development that enables lower income segments to gain access to basic goods and services – at more accessible price points and of a higher quality than was previously possible.
According to Wim van der Beek, managing partner at Goodwell Investments, “The mobile telephony revolution, which allowed for the proliferation of connectivity via low-priced feature phones, marked the first wave of innovations to spur inclusive growth in African markets. Mobile payment solutions like M-Pesa are a good example of this.”
New Delivery Models
This mobile payment revolution has enabled the introduction in Africa of the ‘on-demand’ model – which allows people, particularly in rural and remote areas, to use their mobile phones to access prepaid digitised services that are grounded in physical products. M-KOPA Solar has been the poster child of this model, providing ‘pay-as-you-go’ energy for off-the-grid customers using small solar home systems.