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Mobile Phones and Economic Development in Africa by Aker, Jenny and Isaac Mbiti - Article Example

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  This article discusses the proliferation of mobile phone usage in Africa. It has been noted that the rate of mobile phone adoption and usage has a strong correlation with the cost of handsets and calling rates perhaps because of the low economic status of sub-Saharan countries. …
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Mobile Phones and Economic Development in Africa by Aker, Jenny and Isaac Mbiti
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Summary of Article Mobile Phones and Economic Development in Africa” Proliferation of mobile phone usage in Africa has recorded significant growth especially in the past decade. Presently, mobile phone coverage stands at about 60% of the total population. It has been noted that rate of mobile phone adoption and usage has a strong correlation with cost of handsets and calling rates perhaps because of the low economic status of sub-Saharan countries. Although the data available shows a tremendous growth in mobile phone usage, clearer means of collecting more accurate data needs to be considered.

This is because of the phone-sharing nature and the fact that an individual may have more than one SIM card. Multiple phones is also a common phenomenon in sub-Saharan region. There is strong evidence that the increased use of mobile phone has brought significant economic and social development in this region (Aker and Isaac 4). Indeed, many global communications companies are looking into adopting the M-PESA (mobile money) service pioneered by Safaricom, a Kenyan based Telecommunications Company.

Summary of Article 2; “The Impact of M-PESAs Network Power on Development as Freedom” Arguably, the now celebrated M-PESA technology in Kenya is indeed a hallmark of success in money transfer technologies. The technology has grown and received high reception rates over the past decade. Notably, M-PESA has replaced other money transfer options almost leaving Kenyans with an option of Using M-PESA or no sending money at all. M-PESA has been a game changer in virtually all aspects of money transfer and business transactions.

Improved business transactions have significantly with M-PESA usage. This has essentially led to a growth in different aspects of human freedom in Kenya. Indeed, the development has been directly tied to freedom (Donovan 2661). Works Cited Aker, Jenny and Isaac Mbiti Mobile Phones and Economic Development in Africa. CGD Working Paper 211. Washington, D.C.: Center for Global Development, 2010. Pdf Donovan, Kevin. Mobile Money, More Freedom? The Impact of M-PESAs Network Power on Development as Freedom.

International Journal of Communication 6 (2012), 2647669, 2012. Pdf

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