The nation of Rwanda wants to forsake its sordid past, look ahead, and create a future for its people. Rwanda’s President Paul Kagame is partnering with Western entrepreneurs to create jobs in his country. President Kagame’s vision is to lure private investment to Rwanda, train a new generation of managers and “in country” entrepreneurs, and join the global economy as a charter member in good standing. The ultimate goal is to move the country away from foreign aid. President Kagame’s model is the Asian Tigers of the 1980s. The Tigers were South Korea, Taiwan, Singapore, and Hong Kong.
The Tigers were overpopulated, had little reserves, and they were overpopulated. They are similar to present day Africa. The Tigers biggest asset was the Pacific Ocean. This allowed the Tigers to create an export economy. This export economy allowed the Tigers to create a middle class economy and to join the modern world. The Tigers evolved from being an emerging economy to being a significant economic player in the world global system. This is President Kagame’s vision for Africa. President Kagame has a vision for the development of the African Gorillas. These are a group of African nations that want to create strong, middle class, entrepreneurial economies that create jobs. Africa is an emerging economy. President Kagame’s vision is that Africa will stop being an international state and become a strong player in the globalized economy.
The Tigers had the Ocean. The Gorillas have two assets in a creating a middle class economy. They have social media and they have personal relationships with major western entrepreneurs. Social media creates great scale, and content is allowed to move easily and quickly. If apps can be localized, those apps can penetrate rich diverse global markets.
A strong wireless telecom network is a must for President Kagame as he tries to build Rwanda’s economy. This is where relationships come into play. An entrepreneur that is partnering with Rwanda is Scott Ford. Mr. Ford is the former head of Alltel Wireless. This company developed a large wireless network in the rural South, which is similar to Rwanda.
Rwanda needs cell phones for its development to take off, but they need cell phones of a certain type. They have to have smart phones, but dressed down smart phones. It is the development of these specialized smart phones that may hold a key to Rwanda’s development.
There is a new concept that has developed entitled reverse innovation. In years past, organizations would develop products for mature western markets, and then simplify (dumb down) the product for Third World Markets. Reverse innovation is when simple products are developed in a Third World country and then is sold in a Western Economy. Many times there is a market for this simple version of a larger product.
In the case of Smart Phones, not everyone needs the tens of thousands Apps on a conventional I Phone. Rwanda needs a simple phone, with ease of use. Rwanda has a population which is 50% under the age of 16. The population has limited conventional educational exposure. The Rwandan smart phone must have simple, easy to understand touch graphics. Many Rwandans are illiterate.
Apple could partner with Rwanda, develop and manufacture a simple I phone. This phone could be an example of classic reverse innovation. There is a vast market for Apple in the States for a simple, smart phone. For Rwanda to develop as a middle class economy, a manufacturing base must be created in Rwandan cities. Presently 80% of Rwandans are subsidence farmers.
The Rwandan smart phone could be manufactured in Rwanda, and marketed in both the U. S. and Rwanda. Labor prices in Rwanda would be low in comparison to the U.S., but the manufacturing base would be the beginning of a Rwandan middle class. An operation such as this would create sustainable job s in Rwanda. This is only a simple way of describing a way in which Rwanda and the rest of the African Gorillas could join the global economy. Obviously, the devil would be in the details.
Dean Hambleton
dnhambleton@gmail.com
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