Undefined processes and cross-network differences are hindering successful partnerships between Africa’s small businesses and mobile network operations (MNOs) – despite the fact that Collaboration would offer substantial benefits to both.
By: Gabriella Mulligan
With mobile phones ubiquitous on the continent, mobile operators have scale but not necessarily the internal capacity to innovate quickly and roll out new products.
Africa’s tech start-ups are clamouring to get in on the action, offering innovation in return for reach. But the continent’s entrepreneurs say operators could do more to unlock mutual opportunities.
Collaboration Out of Necessity
Zambian agri-tech company Zazu has plenty of experience engaging with telecoms. It has successfully integrated its services with MTN, Airtel, and Zamtel.
The start-up helps smallholder farmers improve yields and profitability by operating a mobile-based Q&A platform, providing farmers with an avenue to directly sell their produce, and access machinery for hire. The system relies on text messages (SMS) and quick codes, or USSD.
When a transaction takes place between users, payments take place via mobile money thanks to Zazu’s operator integrations.
“Very few MNOs have stopped for a minute to think about how to simplify partnerships with start-ups.”
—Mr Mlambo
Zazu’s CEO Perseus Mlambo explains that given the geographical, infrastructural and social characteristics of the Zambian – and other African – markets, mobile is the best channel to connect with customers. As a result, start-ups have no choice but to engage with operators.
“These collaborations are born out of necessity: for the start-up its distribution channels. For the telco, it’s not just more subscribers and selling airtime, it’s about how sticky the product is and how much time is the consumer spending on the platform,” he says.
However, securing collaboration is not easy for small businesses. Telcos are focused on negotiating with regulators while concentrating on responding to customer needs. Their attention to would-be new partners is, as a result, often limited and unpredictable.
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