London Summit 2015 - e-Access: Technology Opens Doors to the Rural and Remote (I)

Panelists & Core Entities

• Daniel Gorfine (Host): Leads external affairs at OnDeck; focuses on fintech innovation to bridge physical barriers in small business lending.
• Samir Salty (Zoo Capital): Investor in resource efficiency and renewable energy; observes models in Africa leapfrogging Western infrastructure.
• Gary Stewart (Telefónica/Wira): Leads open innovation initiatives; notes a shift from viewing startups as charity cases to essential partners for survival.
• John Fallon (Pearson): CEO of the world's largest education company; challenges the "input-focused" metrics of education ($5T annual spend) against outcome failures.
• Mike Basharia (7C Technologies): CEO of an African tech firm; details Kenya's transformation of post offices into citizen service and health centers.

Substantive Innovations & Case Studies

• Renewable Energy (Tanzania):
  • Off-grid solar solutions (solar panels, LED, batteries, control systems) are now cheaper than a single day of kerosene usage per lamp.
  • Companies like M-Kopa and Zoo Capital's investments drive over 10,000 installations monthly, adding TVs and refrigerators to households.
  • Lessons from Tanzania (mobile payments, pricing models) are being adapted for European energy markets.
• Digital Connectivity (WeFarm/Telefónica):
  • Telefónica invested €500 million into open innovation, including venture funds and accelerators across Europe, Latin America, China, and Korea.
  • WeFarm allows farmers in Africa and Latin America to access crowdsourced agricultural knowledge via SMS, bypassing the need for internet access.
• Education Reform (Pearson):
  • Problem: 770 million people are illiterate; in some African nations, there is a 50% chance of illiteracy/numeracy after five years of schooling.
  • Solution: Blended learning models utilizing tablet technology to deliver curriculum to teachers (e.g., Bridge Academies in Kenya).
  • Data: Children born to literate mothers are significantly more likely to survive past age five; technology is used to provide parents with data to hold schools accountable.
  • MOOCs Evolution: Pure lecture-based MOOCs failed (4% completion), but hybrid models using short video clips + interactive mobile questioning have improved outcomes.
• Government Services & Health (Kenya):
  • Post Office Transformation: Corrupt post offices were converted into one-stop shops for National IDs, passports, and birth certificates, reducing corruption and creating a foundation for financial inclusion.
  • Telehealth: A partnership with General Electric implemented teleradiology (MRI, ultrasound) to overcome a shortage of radiologists, aiming to create a national EMR platform.
  • Clinics in Containers: Deployment of 1,000 container-based primary care units (maternal health, trauma, GP) over two years to treat 7 million patients.
  • M-Pesa: Mobile money solutions leapfrogged traditional banking; incumbent banks eventually embraced the technology and opened APIs for further innovation.

Barriers to Entry & Market Dynamics

• Scale Necessity: Innovators argue that without large-scale goals (e.g., serving 9 million homes in Tanzania), they cannot justify the massive infrastructure investment required for supply chains and logistics.
• Bureaucratic Friction:
  • Gatekeepers often block innovation due to protected value chains; it took 4.5 years to convince Kenyan government officials to pilot the citizen service initiative.
  • Incumbents (banks, ministries) initially resist disruption until the innovation becomes a "movement" that cannot be stopped without public unrest.
• Funding Gaps:
  • Pilots are easier to launch in less mature markets, but scaling globally requires significant capital often unavailable to early-stage founders.
  • Venture funds are increasingly focusing on growth-stage companies ($5M–$20M revenue) rather than just early incubation.
• Regulatory Challenges:
  • Government regulations (e.g., licensing for private training) can stall successful private initiatives like Bridge Academies.
  • Success requires strategic alliances with policymakers and demonstrating long-term data-driven outcomes rather than short-term political wins.

Future Outlook & Strategic Shifts

• Public-Private Models:
  • Enterprise Kenya: A proposed 30/70 public-private board structure (government/private sector) to connect entrepreneurs with ministries, provide angel investing, and offer legal/IP support.
  • Commitments: The initiative aims to create 180,000 jobs annually, attract foreign direct investment, and generate 100 global exports from Kenya within a defined timeframe.
• Role of Government:
  • Policymakers are shifting from "input" metrics (enrollment, GDP spend) to "outcome" metrics (literacy rates, survival rates) under the Sustainable Development Goals.
  • Governments are encouraged to act as regulators and funders rather than direct participants, removing liability for entrepreneurs and offering tax incentives.
• Global Convergence:
  • New Middle Class: A shift from traditional geographic middle classes to "groups of interest" that transcend race, religion, and borders via shared online experiences.
  • Education Trends: Virtual schooling is projected to become a significant portion of high school and university education, though physical social interaction remains a critical component of learning.
  • NGO Evolution: Development sector actors are urged to partner with scalable, profitable social enterprises rather than relying solely on grant funding; NGOs are being disintermediated by direct tech solutions.

Q&A & Risk Assessment

• Risk of Technological Panacea: Experts warn against viewing technology as a standalone solution; success requires "boots on the ground," human engagement, and process re-engineering.
• Data Ownership: Emerging debates focus on whether bank/customer data belongs to financial institutions or should be open-access for innovators.
• NGO Collaboration: Panelists expressed willingness to partner with NGOs and UN bodies (like UNICEF's innovation labs) but emphasized that solutions must be commercially viable and scalable.