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    Mobile opportunities in Africa: expansion strategies

    At the end of June 2009 Google announced the launch of Google SMS in partnership with MTN Uganda. The Google SMS offering is a suite of mobile applications, which provide access (via SMS) to information on a variety of topics such as weather, news, agricultural tips etc. In addition, the product includes Google Trader, which is effectively a marketplace where people can, in their own words, sell a variety of products such as cars, crops, jobs and much more. Ultimately, Google will expand the offering into a variety of African territories.

    When one looks beyond the evident, it is interesting to observe that a name that is synonymous with Internet search (and the related advertising model) has revised their traditional offering to create traction and ultimately build up a database of mobile subscribers. The application per se is relatively easy to implement (Starfish Mobile has had similar offerings with its partner Telco's for more than three years), but Google has had to adapt if they wish to address the handsets, which are not WAP enabled. The key message here is not to try and bring your ‘standard' offering to most African territories without considering local market dynamics and the subsequent business model adaptation. In the mobile ecosystem there are several elements to consider, they include:

    • Handset functionality - in some market, some handsets are so basic they cannot even download content outside of SMS
    • Language preferences - can you engage in the local language of preference?
    • Religious ideologies - be cognisant and respectful of the prevailing religious ideologies
    • Availability of short codes - still are rare as hen's teeth,

    In the realm of the WAP/Mobile WEB enabled handsets, the ‘universe' of approximately 15% is very active - the fact that Nigeria and South Africa are repeatedly in AdMob's Top 10 for accessing the mobile internet bears witness to the fact. In addition, some of the highest growth rates (for mobile internet usage) are being recorded in Africa. Hence, this bearer should not be dismissed but rather be seen in the context of the reach into your likely target market. Are they tech savvy and do they have the appropriate handset? Much like Google, be willing to adapt.

    Bizcommunity.com was a media partner of the Thinking Mobile Conference Series. For more, go to www.mobilemarketingwinners.com and www.mymobworld.com .

    About Sean Pashley

    Sean Pashley is CEO of Starfish Mobile (starfishmobile.com.za). He will speak on Mobile Opportunities in Africa: Expansion Strategies during the Thinking Mobile Conference on 20 August 2009 in Johannesburg.
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