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Report 3 (of 5): New Bu$-ine$$
- Zimbabwe
Introduction
Information and communication technologies (ICTs)
are evolving rapidly, and with them the way the world
of commerce operates. Businesses that do not use these
technologies may be excluded from access to the most
up-to-date information about prices, supplies and
markets and so be at a disadvantage compared with
their competitors. In the many areas of the world
which do not yet have universal telephone connections,
the exclusion from access to ICTs among rural populations
extends to an extreme scarcity of functioning telephones.
See The
Digital Revolution - Information and Communication
Technologies for an overview on the global picture
on ICTs.
Computers, telephones and fax machine, along with
a library and typing service, have been installed
on an old refurbished bus in Highfield and Gazaland
in Harare, Zimbabwe, enabling many small businesses
to increase production and profit margins. Some have
improved efficiency just through the use of phone
calls and fax messages to save the time and expense
of travel to speak to customers and suppliers, while
others have used the internet to find new markets
and sources of raw materials.
Sustainable Livelihoods
| The role of ICTs in rural
development
Knowledge is a central foundation of human
and economic development, and knowledge transfer
through education and training has been a
central concern of rural development initiatives.
Given the particular constraints to education
and training in rural areas, it is here that
the potential impact of ICTs on knowledge
development is greatest.
ICTs have potential to support and enhance
rural development initiatives in three key
ways:
- Managing, storing and sharing
information
- Access to more information,
especially public information
- Creating links for partnerships
in information sharing.
Source: 'ICTs and Rural Development:
Review of the Literature, Current Interventions
and Opportunities for Action', ODI Working Paper
192. |
An international technology and development
organisation, ITDG Southern Africa, has been working
in both rural and urban areas of Zimbabwe since 1989
to help communities access basic needs, including
the ability to derive an income from the skills and
resources they have available. An example of their
efforts to help the economy is the availability of
tools such as lathes, grinding mills and spot welders
for hire on a daily or hourly basis.
Research conducted by ITDG Southern
Africa revealed that most entrepreneurs were aware
of some potential benefits of ICTs, but that access
even to telephones involved a considerable investment
in time and transport. The difficulties of access
include some that are specific to Zimbabwe as well
as those that are common to most remote rural areas:
- Poor quality and availability of
power supplies and telecom systems;
- The target group's sensitivity
to cost, exacerbated by the distances between existing
facilities and a fuel shortage in Zimbabwe;
- Regulatory restrictions, including
a ban on broadcasting in rural areas of the country.
New ICTs such as e-mail and the internet
bring additional requirements:
- User literacy levels need to be
high;
- Training and user support are essential.
The decision was then taken to set
up an information resource centre on the outskirts
of Harare, where small businesses would have access
to affordable services, as well as small business
information and training.
The Infobus
To speed up the process of providing the information
resource centre, this refurbished bus was used
for office accommodation
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After a long search for suitable premises
a disused articulated bus was chosen to house the
business facilities:
- TV and video
- Telephones
- Fax machine
- Typing service
- Photocopying
- Computers for e-mail and internet
use
- Small library containing, for example,
technical briefs and books on running a small business
- Databases, including a directory
of micro-finance institutions
- Training area.
The project objectives are primarily
to prevent further marginalisation of small-scale
producers, and to allow small businesses access to
markets and other business information.
Demand for telephones is so high that queues form
at busy times |
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The Infobus opened to clients in September
2000, although telephone lines were not available until
January 2001. Project implementation began at a time
of growing political instability, accompanied by food
riots, high inflation and fuel shortages, and the accompanying
rise in unemployment has encouraged the setting up of
small businesses that would benefit from the project
at the same time as slowing down its implementation.
The vehicle is the back part of a trailer bus commonly
seen in southern Africa. It has no engine and although
it could be hitched up to the cab section or a tractor
unit and moved to other parts of the city, this has
never been done. The Infobus's immobility is doubtless
seen as a plus by the high proportion of users who
visit it almost daily, though it means that only businesses
in the base area really benefit from the project.
Dust is a particular problem with the computers,
despite valiant efforts to keep it out by closing
the doors and windows, and this may be a reason to
avoid using a similar home for other centres of this
kind.
Promoting Growth
With prior agreement a number of regular
users were contacted after the first year as part
of an attempt to measure the impact of the facility.
The resulting Evaluation Report (Oct/Nov 2001) included
the following success stories.
| Maxwell Sakutukwa's dream of
running a viable business has partially been
fulfilled as he has fought against all odds
to become the proud proprietor of Edatach Enterprises.
Established in 2000, the venture is situated
in the Gazaland area of Harare, where small-scale
ventures are mushrooming as more and more qualified
artisans find themselves unemployed due to the
economic downturn in Zimbabwe. Maxwell's venture
is among the most prosperous in the area as
it offers a wide range of capital equipment.
"My line of production ranges from moulding
machines, farming and grain milling implements,
building equipment, juice making, peanut butter
processing and welding machinery," says Maxwell.
"For the new designs, I use the internet
services provided by the Infobus. Apart from
utilising internet services, I made use of
the telephone facilities to place orders for
production material as well as to call on
new and old customers. Typing, faxing and
photocopying of business documents such as
invoices, quotations and product designs were
again done at the Infobus."
Use of the Infobus has saved Maxwell overheads
such as employing a full-time typist/clerk.
He does not have to invest in a computer or
spend production time learning how to use
it. He has overcome the frustration of applying
for telephone services only to be placed on
the waiting list indefinitely.
"Time is money and the Infobus has saved
me from travelling 11 kilometres to town .
to access the same services provided by the
Infobus. Such a trip translates to a loss
of two and a half hours of production time."
Maxwell now has six employees to assist him
with production while he concentrates on customer
liaison and product design. The Infobus, according
to Maxwell, has provided an essential resource
for developing and improving his business
venture.
From a case study by Gay Nyakwende, ITDG
Southern Africa
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- A company that manufactures security
products, mainly safes, was less than a year old
when the project began, and at that time employed
three people. Initially the owner went to the Infobus
for photocopying and typing services, but through
a business colleague who also used the facility
he developed an interest in the internet and e-mail
facilities. As a result he tapped into local and
regional markets and expanded his business considerably,
and increased his work force to 21 full-time employees.
- A couple who were making a living
by selling used tyres used the facilities on the
Infobus to produce more professional business cards
and stationery. Their turnover increased substantially
as a result of this and the time saved by using
the Infobus for their office work.
- Two brothers whose business venture
involved waste disposal, mainly in residential areas,
visited the Infobus with the aim of finding new
customers. The business focus has now changed to
industrial waste, and this has proved to be more
profitable, with demand outstripping the company's
ability to respond. One of the brothers has been
making use of the business management training materials
on the Infobus.
Evaluating the Project
These summaries illustrate how the
needs of users change over time in response to either
business development or encouragement by acquaintances
or staff to investigate the other resources.
In the first year most people came
to the Infobus to use the telephone, photocopying
and typing services, and only 9 per cent used the
other facilities such as the internet. This can partly
be explained in terms of information needs, which
are largely local rather than global. However, new
ICTs were also perceived as expensive, whereas the
actual charges for their use were favourably received.
In addition, people are often wary of the unknown
and may need encouragement to invest valuable time
in exploring new technologies.
The Future
Funding was withdrawn and made it
necessary to recover costs and be self-sustaining
more quickly than expected, and this contributed to
changes in the pattern of use of the Infobus. The
initial target users, small producers in the vicinity,
continued to rely on the services provided, and the
facility gradually became a social and economic hub
as more people used it for social communication. However,
to maintain affordability it is necessary to derive
an additional source of funding.
Two new groups of users have emerged:
people communicating through e-mail and telephone
with family and friends who had left the country,
and middle-aged women who constitute over 70 per cent
of the daily traffic. Social networking and personal
communication have become part of the Infobus service,
and any effort to selectively apply measures to discourage
casual users and increase enterprises users would
affect cash inflow and sustainability.
Despite the setbacks, for local businesses
the Infobus has provided the means to develop and
expand. There is clearly a market for such a facility
among small entrepreneurs.
Acknowledgements
ITDG would like to thank Sithembi
Nyoni-Mpofu and Gay Nyakwende at ITDG Southern Africa
for their help in compiling this material.
Further Information
Hands On
Series 2: Get
Mobile - Bangladesh
Intermediate Technology Development
Group (ITDG) helps people to use technology in
the fight against poverty
http://www.itdg.org/
ITDG Southern Africa (Harare)
Established in 1989, the primary focus has been to
strengthen the ability of small producers to manage
and organise their productive activities by providing
them with wider choices of technology that are appropriate
to their needs.
Street address
3rd Floor, Coal House
17 N. Mandela Ave./Cnr. L. Takawira St.
Harare
Zimbabwe
Postal address
P.O. Box 1744
Harare
Zimbabwe
Tel: +263 4 759 827-8, 780 992/5, 750 880/2
Fax: +263 4 771030
Cell: +263 (0)91 403 887
E-mail: itdg@itdg.org.zw or itdg@ecoweb.co.zw
Overseas Development Institute
(ODI)
111 Westminster Bridge Road
London SE1 7JD
UK
Tel: +44 (0)20 7922 0300
Fax: +44 (0)20 7922 0399
Website: http://www.odi.org.uk/
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