PayPal still thinks Africa is the 'dark continent'

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I just got an email from a friend in Austria. Inspired by a post on LGBT Asylum News he wanted to make a donation to the Sex Workers Outreach Program (SWOP) in Nairobi.

The people there are wonderful, and intelligent, and courageous and open-minded people indeed, and they deserve our help and solidarity. Tears are forming in my eyes when thinking of the women and men with HIV infection and AIDS living in poverty there.

But my friend found out that whilst sending money via PayPal is possible for people in Kenya receiving money is not.

When he contacted PayPal customer services by email they claimed that receiving money is not allowed by the legislation of Kenya. Yet he was able to send the money to Kenya via Western Union — for the transmission of Euro 100 he had to pay a fee of Euro 17,50 which is far higher than PayPal's charges.

Jonathan Gosier, a software developer, writer and social entrepreneur, explains on appafrica how:

PayPal, intentional or not, are sending a very strong message to the rest of the world about Africa.

Prior to moving to Uganda, Gosier had used PayPal for four years and estimates that he's transferred over $100,000 during that time

Bu this counted for nothing once he'd moved to 'the dark continent'.

Apparently PayPal’s way of ‘policing’ their service is to simply flag various IP addresses as being ’suspect’ . hrmm. I have a few Iranian and Indian friends who could tell you a bit about what it’s like to get profiled based on where you appear to be from. (And if they won’t suffice as anecdotal evidence, I’ve got a few million mexican and black american friends who’d double down on the sentiment.)

So Africa remains a high-risk zone as the sheer number of comments like these from paypal users indicates:

I am in the process of trying to sell a laptop. i have posted ads on comtrader and ebay. So far the item has been bought off ebay by a mother who wants its for a present for her daughter in AFRICA. Two people have expressed interest through comtrader, one wishes to buy it for a business associate in AFRICA, and the other wants it for himself, and guess where he lives….. AFRICA. Sorry for all the capitals, but am i missing something here. I’ve replied to the ebay purchaser who is going to pay through Paypal, which i know is covered by ebay so i feel safest. Just wondering if this obsession with me posting it to AFRICA is anything i should be sketchy about.

Or this person’s thoughtful reply:

Anything from africa is a scam so stay well clear. Re-list the item if you have too.

Wow. Anything from Africa is a scam. I better take back this computer I just bought from GAME!

The unintentional effect here is that by blanketing the whole region as suspect, it reduces the number of viable alternatives for legitimate businesses and professionals who want to use services like PayPal for trade. I use PayPal for some of my payroll now (for people who don’t live near me). However, whenever I do, PayPal flags my account and shuts it down temporarily ‘because I accessed it from a suspicious location’. To unlock it I have to call them, from Uganda and do a bunch of other stuff that’s inconvenient. I suppose this is the price of admission for using the service in country it wasn’t intended to be used in. So no complaint here either.

But what it does mean, is that from every angle legitimate African businesses are smacked in the face by measures put in place to police the one’s that are indeed abusing the system. But this affects even expatriates and NGOs that might want to use the service. If it’s accessed from a certain IP there’s a red flag, especially if that IP is not where you registered to use the service.

Once again, the message perpetuated here is to be cautious when dealing with Africans, Africa or anything you suspect of being related to the aformentioned. This is nothing new. Most people here have been dealing with such mentality their whole lives, why would it stop now that the medium has changed? To be fair, there’s truth to this stereotype. There is indeed a huge problem of scams here. There is some truth to most stereotypes, the word itself simply implies that those truths are applied where they don’t necessarily belong.

Unfortunately, there are a lot of people here who are just like consumers everywhere else in the world. They want to buy things, they want the conveniences of online shopping, they want to do business…and they want their neighbors to stop scamming you so they can have those things.

I realize that the problem can’t be solved entirely by Paypal alone but I would appreciate at least an option to flag my account in advance for what might be mistaken for ’suspicious activity’. I’d be happy to leave this to PayPal’s discretion but my problem is they aren’t using any. African transaction? Banned! Banks will allow customers to indicate that they will be abroad for a certain period so that they don’t shutdown accounts by mistake. Why doesn’t PayPal? You’d be surprised at how damaging these blanket policies can be to an organization like mine that simply just wants to pay employees and be paid by clients.

I suppose the complaint is that PayPal doesn’t give me an option to avoid my account getting bricked. It costs me money everytime they do it. they give me no alternative to prevent it from happening and when I talk to them, somehow it’s my fault for existing ‘in that country where The Last King of Scotland took place‘.

My Austrian friend says:

To me this is a kind of discrimination, and neo-colonialism, and racism towards African people, and it reminds me of the inhuman politics of the pharmaceutical industries not to reduce their prices for medicaments for HIV and AIDS in poor countries, but to accept the death of lots of people who could not afford these high prices. If you are living in a rich country of the European Union you survive, if you are a poor woman and a poor man in Africa you die. We must not accept it!

I thought of his experience and Gosier's whilst reading about the coming of broadband to East Africa (which includes Uganda) via the BBC's excellent series of reports.

This did warn of and catalogue the whole raft of other challenges to Africans other than the lack of broadband, which puts its arrival in context, but they missed this one.

Theresa Carpenter Sondjo notes that there are alternatives for African entrepeneurs to PayPal, however they are all more "more expensive and less flexible". That seems to be a running theme for Africa - lots of stuff to build a business is way more expensive, Africans have a stack of hurdles to jump over.

Maybe Oxfam, Mr Bono and Mr Geldof should get onto this one and start shaming PayPal?

Socially responsible outsourcing

I posted recently about mobile developments in Africa and how they are being used in a number of imaginative ways - many of which which we're yet to see in the 'West'!

As well as being used to organise day labour they're also used by people to do small jobs such as translations. In Kenya, with its many languages, this is how help resources for mobile companies' customer services are being built - word-by-word



Samasource is a fantastic new San Francisco non-profit that partners with small, talented, tech companies and nonprofit training centers in poor and rural communities (currently Kenya, Cameroon, Uganda, rural India, and Nepal) to find them clients.

It derives its name from the word sama, Sanskrit for “equal”.

Their partners must meet stringent social impact criteria - fewer than 20% of applicant firms are selected - and they specialize in services ranging from data entry to advanced software and website development.

It's about giving work, not aid to people in the world's poorest countries.

Socially Responsible Outsourcing 101

View more Microsoft Word documents from Leila Chirayath.

Here's a profile of Ann Wangui, a graduate with honors from Nairobi's Methodist University. She is an example of the sort of person who is struggling to find a job in Nairobi despite her qualifications and who Samasource aims to help.



This is certainly a much better approach than the one being adopted by the world's large tech companies. Erik Hersman recently posted Microsoft vs the Open Source Community in Africa.

If Microsoft developer communities do emerge in Africa, Erik writes, even with the massive hurdle of paying for expensive access to developer tools, "we’re still left with what one person wrote: …they will be formed from programmers who are completely dependent on American software for the livelihood: it’s neo-colonialism, pure and simple."

In Africa organizations have a lot of hurdles to overcome, not least of which is the straight cost of doing business. Where it might be simple for some organizations in the US and Europe to wave off a couple thousand dollars worth of licensing fees, the same is not true in Africa. The margins are lower, so every cent counts.

In a region where cost is so important, it’s amazing then that the most lucrative deals go to the Western organizations that have high costs for ownership and maintenance. These outside organizations use backdoor methods to gain contracts where in-country options are available, usually with less expense and with greater local support.

Hersman also reports that Microsoft are trying to muscle in on the African-developed Ushahidi crisis reporting social software with a new product called Vine. He says "if they really are about creating emergency and disaster software for use by normal people, then I would encourage them to not charge for it and to make it as open as possible for others to work with it."

Fat chance, I suspect.

HT: Owen Barder

Today I will be mainly feeling anger

My oldest mate's marketing company has just gone under after eighteen very successful years.

It wasn't killed by the recession, as this report says, or by losing business from playstation, but by the banks.

About six weeks ago, with no warning, their bank cut their overdraft down to 10% of what it was. They couldn't get any credit from anywhere else, not from any other lender and there is nothing either local or national government had set up to help small businesses like theirs.

And they had business. Despite reports of major cuts in marketing budgets they had been gaining clients (it was a youth specialist, one of the first to be set up).

So twenty jobs have gone entirely because of the bank's malfeasance and with no help whatsoever from a government which bails out banks and has yet to prosecute any of the criminals in them but has done nothing for thriving small business hit by a credit crunch their billions is alleged to be helping end.

This makes me extremely angry, especially as he has weathered a series of major hits, including a huge fraud against him, the sorts of ups and downs that end many small businesses, and come out stronger through sheer hard work and bravado. He deserves better.

It really is time a few of those b(w)ankers were strung up as an example to others.

Economic depression: a silver lining

Source

Credit crunch as transmissible disease

Rolling Stone has an absolutely brilliant piece on what they call Wall St's 'coup d'etat', which I can't recommend enough as a primer on the credit crunch.

It names the meltdown's 'patient zero' (think 'typhoid Mary') as one Joseph Cassano of AIG. He operated out of - wait for it - London! And was enabled by weak UK/EU regulation.

Seriously, a must read,

Jon Stewart is god

Paxman? Pweergh ...

Background:

A war between basic cable personalities has broken out between financial channel CNBC's Jim Cramer and Comedy Central's Jon Stewart.

The skirmish started on 4 March when the Daily Show's Jon Stewart rallied against CNBC for its poor advice to viewers. Part of Stewart's segment included a clip of Mad Money host Jim Cramer making a rosy prediction about Bear Stearns just before the investment bank failed.

Cramer complained Stewart's use of the clip was unfair and and taken out of context. Stewart responded by revealing previous footage of Cramer pumping up Bear Stearns.

The next day, Cramer blasted Stewart on NBC's Today Show and scoffed at Stewart saying the comedian hosts "a variety show". Later, Cramer appeared on MSNBC's Morning Joe where host Joe Scarborough called Stewart out for cherry picking clips to amuse the Daily Show's audience at the expense of Cramer and others. Stewart said Scarborough was not quite correct in his assessment of the Daily Show saying he is more in the business of "turd binding".

The next round of the fight continues tonight at 11pm ET when the Mad Money host will appear with Stewart on the Daily Show Will the basic cable hosts play nice or will they lock horns in an epic duel?

Oh, he 'played nice'! This interview is being hailed stateside as worthy of Edward R. Murrow. WhiteHouse press secretary Robert Gibbs even praised it. So it has exposed the US MSM (which, I would add, the BBC relies on as a journalistic source for the US 'news' they bring you license-fee payers) to justified, scaring criticism.

The Daily Show With Jon StewartM - Th 11p / 10c

Jim Cramer Unedited Interview Pt. 1

Daily Show Full Episodes
Important Things w/ Demetri Martin

Political Humor
Jim Cramer

The Daily Show With Jon StewartM - Th 11p / 10c

Jim Cramer Unedited Interview Pt. 2

Daily Show Full Episodes
Important Things w/ Demetri Martin

Political Humor
Jim Cramer

The Daily Show With Jon StewartM - Th 11p / 10c

Jim Cramer Unedited Interview Pt. 3

Daily Show Full Episodes
Important Things w/ Demetri Martin

Political Humor
Jim Cramer

Corporate socialism

Remember that $700 billion corporate bailout? Seems that, A/ no one's accounting for it - no one - and B/ it's being spent to do stuff like boost market position. And the auto industry bailout? The fine print forbids strikes.

This - Bush's legacy - is entirely the source for the global economic crisis and begs a lot of questions about how the UK bailout is being spent.

Rachel Maddow interviewing David Cay Johnston,

"Ninety percent of American's incomes today are smaller than they were in 1973."

"Nothing is being done today, with the initial bailout money, to affect foreclosures. That's what congress said should be done with the money, but that has not been done. The foreclosure crisis is affecting everyone's home value and is at the center of this economic crisis."