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Bridging the Digital Divide In Uganda, By Freight

jtrust27 writes "Slow or non-existent Internet connections have meant that the people of Uganda have not been able to harness the many advantages of the online economy. This social and economic exclusion of the poorest of the poor was further accentuated by the impossibility for a Ugandan to obtain a credit card or make PayPal payments — a simple requirement to be able to pay for goods and services online. Most merchants and payment gateway providers automatically block all credit cards from Africa, and it is not possible to get a verified PayPal account in many African nations." Now, a Ugandan company called EasyPayUganda is helping people sidestep these restrictions, by allowing customers to make online payments by proxy in order to pay for services and goods. EasyPayUganda is also providing a logistics solution, forwarding customers' shipments to Uganda, as most online merchants will not ship to Africa.

26 of 146 comments (clear)

  1. Africa by sopssa · · Score: 2, Interesting

    It's interesting that people complain how Africa is a third world country and how we should help them, but interestingly everyone sets artificial restrictions on them and restricts them from the other world. Many countries in the world ship food help and money there but if African countries are banned from using the services the rest of the world uses their region will never develop to the same level.

    Instead of spending billions dollars to help Africa every year, what about if we open the services and let African countries develop normally like rest of the world?

    Obviously theres the danger of fraud single they're still developing countries, but it's better to think long term. We can use the aid to cover the cost from frauds, and maybe in a few years we can stop spending so much money to help them. It will save us a lot more, especially in the long run.

    I'm glad theres those single individuals who fight for it and try to make the world a better place.

    1. Re:Africa by dangitman · · Score: 5, Insightful

      It's interesting that people complain how Africa is a third world country and how we should help them, but interestingly everyone sets artificial restrictions on them and restricts them from the other world.

      It's not that interesting, because you are talking about two different sets of people. The people upset about poverty in Africa are not the same people who run financial institutions that block Africa from global participation.

      --
      ... and then they built the supercollider.
    2. Re:Africa by feuerfalke · · Score: 3, Insightful

      How in the world would another nation or continent regress simply because conditions in Africa improve? I guess you could make an argument that there are limited resources in the world - but I seriously doubt that another developing or developed nation would suddenly plummet into the stone age simply because Africa is catching up with the rest of the world. Whether or not the rest of the developed world wants to share any of its resources with Africa is another story, however... how many Americans would give up their oversized homes and cars and reduce their ridiculous consumption of meat, water, and so on just so that some far-off distant nation can fare a little better?

      --
      A programmer is a machine for turning pizza into code.
    3. Re:Africa by CondeZer0 · · Score: 2, Insightful

      What blocks Africa from global participation are the tariffs, subsidies and other trade barriers in the 'developed' world; specially theinsane farm subsidies in Europe and the US.

      Financial institutions on the other hand have little if any incentive to block Africa from global participation as Africa does not represent a threat to their business and actually represents an opportunity to expand.

      --
      "When in doubt, use brute force." Ken Thompson
    4. Re:Africa by hitmark · · Score: 2, Insightful

      the basic problem seems to be that we have a habit of talking about africa as a single place, rather then multiple nations.

      --
      comment first, facts later. http://chem.tufts.edu/AnswersInScience/RelativityofWrong.htm
    5. Re:Africa by Jyms · · Score: 2, Informative

      It's interesting that people complain how Africa is a third world country and how we should help them, but interestingly everyone sets artificial restrictions on them and restricts them from the other world.

      Another thing that hurts Africa is that even an intelligent audience like Slashdot thinks of Africa as a third world COUNTRY, when in fact it is a continent with a billion people spread over 61 territories (53 countries), covering about one fifth of the world's landmass.

  2. Let's just hope... by ls671 · · Score: 2, Funny

    Let's just hope those people are reliable ;-))

    --
    Everything I write is lies, read between the lines.
    1. Re:Let's just hope... by Bugamn · · Score: 5, Funny

      Dear Mr./Mrs.,

      First, we must solicit your strict confidence in this transaction. This is by virtue of its nature as being utterly confidential.

      We represent the poor people of Uganda and we need your help with some online transactions. We have created this site to allow the poor people of Uganda to take part on the online economy, but worldwide distrust won't allow us to continue.

      We have got the ammount of two Million Dollars, but we need the help of an american citizen to receive the money. After careful research we have chosen you to help us.

      As part of this business you will be allowed to keep one quarter of the total money, while using the rest to buy the goods for our clients. We only need 2 thousand dollars for legal fees to transfer the money, which will given back at the end of business.

      Yours Faythfully,

      Dr Clement Okon

  3. can't honestly discuss the place by r00t · · Score: 3, Insightful

    People in the USA have the weird experience of public schools going on about Africa having wonderful culture and natural resources, then as adults slowly realizing that the place is totally fucked up.

  4. That's how it used to work by Animats · · Score: 2, Interesting

    That's the way international ordering used to work. You had to order stuff through some import company or freight forwarder, which had business relationships with foreign suppliers. You paid the import company, they ordered, handled the shipping, and sold the item to you with a markup. That's how it worked back in the days of sailing ships.

    Note that this Ugandan company doesn't have a posted price list. You have to ask for a quote before they tell you how much they're going to mark up your Amazon.com order. So they're probably expensive.

    1. Re:That's how it used to work by ls671 · · Score: 3, Insightful

      > and sold the item to you with a markup. That's how it worked back in the days of sailing ships.

      It is the same with Paypal and credit cards with the difference that the merchant pays the markup.

      In the end, merchants adjust their prices to compensate for the paid markup. The consumer always end up paying in any business model.

      As I stated in another post, I hope those people are reliable and that they won't abuse anybody because of their positioning. Given the fact that some people complain about the way Paypal behaves, it seems like a reasonable wish to make.

      http://news.slashdot.org/comments.pl?sid=1630376&cid=31971982

      --
      Everything I write is lies, read between the lines.
  5. Ob by Hognoxious · · Score: 2, Insightful

    It's interesting that people complain how Africa is a third world country

    Some of us are better informed. We know that it's a continent containing a large number of third world countries.

    --
    Confucius say, "Find worm in apple - bad. Find half a worm - worse."
  6. The truth is somewhere in the middle - been there. by Shag · · Score: 5, Interesting

    I've been there several times, and Uganda - like most former colonies in Africa - isn't so much fucked up as it was fucked over. Faced with the lack of a middle-class (since of course they didn't want to stoop to being middle class, nor did they want any of the Africans to rise to that status) the British empire imported Indians by the score. Post-independence, there was all kinds of unrest, eventually culminating with Idi Amin kicking out all the Indians, which of course failed to solve anything because it wasn't like the locals were ready to take over their jobs or anything. Cue another 10-15 years of unrest, a couple coups, Museveni lets the Indians back in, they go right back to business and become more wealthy and powerful than ever, and aside from lingering problems with transboundary rebel groups in the far northwest near the borders with Sudan and Congo, the place has actually been relatively peaceful and stable for 25 years.

    Unfortunately, given the history 1960-1985, development was starting from a pretty bad position - but it's been developing crazy-fast. The African Union's NEPAD (New Partnership for Africa's Development) project has been pushing good governance, anti-corruption, computers in schools and all that stuff, and Uganda's national planning authority just released a 5-year development plan, written by development professionals without consulting the parliament (which the parliament are pissed about, hehe!), and emphasizing electrification, high-tech industry, mass transit, and a bunch of other good ideas.

    Of course, Uganda's still less developed than anywhere in the US except for maybe some back-woods hillbilly shack - my fiancée helped with editing the 5-year plan, and her apartment, just a few km from downtown Kampala, is at the end of a dirt lane, off another dirt lane, off a dirt road, off a paved road. And it's more surprising if the power stays on all day than if it doesn't.

    The good news, though, is that thanks to some development aid partners (like Norway), it's being given development options other than "get as much oil as possible and build your economy around it" (a.k.a. the US-China model). Norway is huge on hydropower, and Uganda has a lot of potential in that area. Straddling the equator, there's plenty of solar potential too. So there's hope, at least, to preserve some of the environment, which of course is being exploited through eco-tourism.

    As far as getting goods to Uganda, though... sheez, this is dead on. Never, ever try to mail anything there. I don't know whether it's customs or the postal service that's corrupt, but it's like mailing things into a black hole. I think one or two postcards I sent might have made it through. Even Express Mail doesn't get any respect. If you want to get anything to anyone, it's FedEx/DHL or bust.

    The goods sold in stores have pretty much been shipped overland from Mombasa (in a barroom, drinking gin *weeps for Warren*). Former UK colony, so they're all UK-spec electrically. In '05 or '06, a clock-radio you'd pay $19 for at WalMart cost $100 due to all that shipping. Thankfully, things have gotten a little better now, but an unlocked iPhone 3G S is still $1200+. Oh, yes, there are iPhones. There's an Apple authorized reseller right downtown in Kampala, although there's an unhealthy lag for them to actually get each new revision of things in-stock. Some of the bigger regional supermarkets even carry US brands.

    But credit cards... yeah, they're a novelty over there. Ugandans hardly use credit. A young man will bust his ass to get through school, then work like crazy and live on almost nothing, until he saves up enough cash to buy land and build enough of his dream house to live in. They're insanely hard-working. So basically you either meet people who have nothing (because they're working and saving) or you meet guys who are 25 and already have a large house, nice car, etc. Not so much in-between. And not on credit.

    4 years ago, you could walk aroun

    --
    Village idiot in some extremely smart villages.
  7. Re:Credit cards blocked in Africa? by cbraescu1 · · Score: 2, Insightful

    Most merchants and payment gateway providers automatically block all credit cards from Africa

    This is a silly phrase.

    Africa is a continent, not a country. Nobody can block cards "from Africa", since cards are issued "per country".

    Now, let me tell you something: cards from South Africa, Egypt, Algeria, Tunisia, Morocco are not blocked. Cards from Nigeria, Uganda are blocked. It's about the fraud rate originating from a specific country, not about some continent-wide blockade.

    --
    Catalin Braescu
    Ofaly.com
  8. Re:Africa is fungible and unpleasant by Anonymous Coward · · Score: 2, Interesting

    Aha, but we don't let them. Immigration into the land of milk and honey is nigh impossible for these third-worlders and in case they start uprooting the rainforest, we make that a preserve (except where we do the uprooting in our own interests). We plunder their natural resources and cut them out of the loop, often by controlling their resistance through helping the oppressive regimes. Telling the people of Africa to "move to where the food is" is cynical at best. Besides, food isn't the biggest problem in most parts of Africa. It isn't all a desert, you know?

  9. Re:Last 3 decades? by Stormwatch · · Score: 2, Insightful

    Centuries start on the "01" year rather than the "00" year, so shouldn't decades start on the "x1" year as well? Meaning, right now we're in the LAST year of this decade.

  10. Please help me! by leachlife4 · · Score: 4, Funny

    Now the tables have turned:

    I am an American prince and I need your help to access my millions of dollars being held in a bank, and in return I will let you keep 10%.

    All you have to do to get you share of the money is to wire me $3000 for the unlocking fee at the bank.

  11. Most of africa is rather nice, actually. by Eunuchswear · · Score: 4, Interesting

    To promote aid in most regions of Africa, you have to be prepared to deliver that aid against armed resistance, or accept that that aid might be coopted to feed the army that oppresses people who need aid. That's not really helping.

    Patent nonsense.

    Most regions of Africa don't need food aid.

    Most regions of African don't have ongoing armed conflict.

    I really do want to help these folk, and I can think of no better way to do that than to repeat the message of the great (and missed) Sam Kinnison: Move to where the food is.

    So you campaign for open borders?

    You're in a freaking desert where things don't grow. MOVE.

    Most of the inhabited regions of Africa are not deserts. Things grow.

    Africa has problems, but it is not the starving hell-hole you seem to think it is.

    --
    Watch this Heartland Institute video
  12. Re:The truth is somewhere in the middle - been the by Shag · · Score: 2, Interesting

    Life expectancy is an aggregate, of course, and you can drag it down real fast with childhood, neonatal and maternal mortality. Sure, I know Ugandans whose kids died young, and I know ones whose kids died as young adults, and I know of people who died in their 50s or 60s, but I also know ones who are 70+ and have heard of them living to 90 or more. And of course, among the Indians, who tend to be moderately well-off, the numbers may be different. The richest man in the country, Sudhir Ruparelia (you can google him) is a hotelier who was a teenager when they were ejected; I'd put him in perhaps his late 50s now, and certainly he can afford the best medical care.

    By the way, I've nothing against Uganda's Indians or Mr. Ruparelia; I've stayed at his flagship property before and my fiancée is well-acquainted with his people as well. Had the Brits handled things differently 100 years ago, perhaps the kind of perverse logic Amin espoused would never have arisen, but what's done is done.

    --
    Village idiot in some extremely smart villages.
  13. Take it from an African by musmax · · Score: 2, Insightful

    I'm an African, a white one that is. My progenitor arrived in the Cape of Good hope in 1697, the latest family register counts the member of white descendent of my family close to 6k, the number of brown/black descendants are unknown, those that kept the original family name and are classified "coloured*" are a 1000 or so, but I digress. Africa is indeed fucked up, this is primarily due to Africans, not Europeans or "Colonialists" but africans themselves. Africans are not simply less fortunate white people with black skin. They have fundamentally different world views and cognitive abilities. I cannot compete with a black African digging a ditch, he can keep at it for hours and hours, the last 30 years has seen most of the Olympic track and field go to black Africans. The average black African cannot plan or appreciate cause and effect to the degree that another member of the species would find to be "common sense". I believe this to be a wetware problem, not simply due to culture or lack of education or opportunities. This, of course makes me a racist, or at best, or a white supremacists. I have grown comfortable with that label. I'd rather be that than delusional.

    I've also realised that most non african whites simply have no clue or opinions worth considering when it comes to race related matters. You have no clue, have no real experience dealing with people significantly more different than yourselves. Come to South Africa for the Soccer World Cup, you will gain what you lack. You might not like what you may become.

    * Americans note: Your president is "coloured", not black, regardless of what he claims to be. If Africa had 10% of the calibre of Obama's the continent would be a unstoppable superpower. But be not alarmed, barring a mind-enhancing super virile pandemic mind-enhancing air-borne virus, infecting every african, your position is save.

    1. Re:Take it from an African by KDR_11k · · Score: 2, Interesting

      What you said about blacks is the same I could say about manual laborers in Germany (and I mean locally born ones, not immigrants), having a manual labor job simply builds a lot of strength and endurance but smart people will usually take the better paid office jobs instead. As for common sense, considering the logic the ancient Greeks espoused at times (Socrates' apology... *shudder*) I don't think what we call "common sense" really is so universal to the species, it's built by the society around it. A thousand years ago (that's right in the medieval age) the average European peasant would have been equally confounded by any talk about cause and effect.

      --
      Justice is the sheep getting arrested while an impartial judge declares the vote void.
  14. Fraud from neighbors and no demand by tepples · · Score: 2, Interesting

    If some African countries don't give you problems why would you block them?

    Because there is an indication that they are more likely than not to give us problems. Too many countries on that continent that aren't South Africa or Egypt fit the following pattern: We see an unacceptable rate of fraud from the country's neighbors, enough to extrapolate the likelihood of fraud within the borders of that country, and not enough complaints from people in the country.

  15. Shipping to Africa is as safe as wiring your money by zelik · · Score: 3, Informative

    Anyone who complains about foreign companies not "helping Uganda" or Africa in general by denying sales transactions with them has obviously never seriously ran an online business. I ran a moderate ecommerce site (google PR6 at the time) and during the 5 years I had it I received about 10 fake or bad orders from Africa daily. Of course, they were all from Nigeria and wanted ridiculous shipping requests (mail to lagarda bus stop (or something like that)) and for exorbitant amounts (40 DVD players) with insane shipping charges (international UPS expedited!). You can't blame a merchant for not wanting to take the risks of dealing with Africa. One bad experience can cost you quite a bit and credit card companies will never side with the merchant. If you want to blame somebody, blame the credit card companies who place most of the blame on merchants for any fraud that occurs.

  16. But a step is being missed by SmallFurryCreature · · Score: 4, Interesting

    We had war-torn countries before. Europe was in a bad mess after WW2. My own country, Holland had to build up from mass starvation in the last winter of the war to a modern western nation. But that did NOT happen at once. Dutch living standards took decades to reach American living standards. And in those decades, people did NOT have huge American cars or huge American style homes or living on credit. The post war years were spend working hard and saving lots and then buying modest AND domestic.

    And that seems to be missing in your story. Granted, the working hard is there, but then they buy a iPhone and a big car... understandable, everyone else in the world has it, but it means local industry can't develop. If you buy a Chinese clock radio instead of an african windup clock, then that African factory can never develop to build clock radio's. Why do you think the tiger economies were so hot on producing cars, their own cars? Because if they had just bought American, they would never have developed their own economy long term.

    The African economies/cultures seem to be close to cargo-cults.

    A lot is made of the fact that Africa is skipping the landline and a lot of westerners think this is a great thing. WRONG.

    What pacified the west? The telegraph. Telegraph lines were an essential part of conquering America, they had to be kept safe and so as a side result, any land with a line on it became safe. Same with the rail lines. As the network spread, the lands around them were made safer and became safer.

    If landlines can't be installed in Africa because it is not safe, then installing a wireless network is NOT dealing with this safety issue. It doesn't matter wheter you attribute the taming of the west to train, the postal service or the telegraph. The building of these networks and the need to protect this network protected the lands around it.

    When something is beyond the pale. What does that mean? Hignfy refreshed my mind on the recently, it refers to the old european punishment of putting wrong do'ers beyond the city limits. Not so long ago, being outside a city and its protection was a serious form of punishment.

    If you can understand the difference that has come over europe were we can't even see why that would be a bad thing, we leave the city for FUN!!!!!, then you can't understand how Africa where lawlessness reigns is missing an essential foundation, an infrastructure for its development.

    It is like building a skycraper on sand. It might look the part, but an essential part is missing, the foundation.

    While this new service might sound like a good idea, I think it is very wrong indeed. It is shipping in western goods and skipping the development of the local economy, industry, infrastructure to truly support it. That you mention you need to use FOREIGN postal services to ship anything is telling enough.

    The postal service is the most fundemental service of any country. Without it, nothing else can function. There is not a single developed country that did not have its own postal service and most still do.

    Skip it and you are a cargo-cult, completly dependent on a foreign entity, who may bear you no malice but simply might one day not come around anymore. An African buying an iPhone at inflated prices is NOT a sign of progress.

    --

    MMO Quests are like orgasms:

    You may solo them, I prefer them in a group.

  17. Re:Last 3 decades? by KingSkippus · · Score: 2, Insightful

    Centuries start on the "01" year rather than the "00" year, so shouldn't decades start on the "x1" year as well? Meaning, right now we're in the LAST year of this decade.

    I never recognized that convention. But then, I've been a computer sciency geek as long as I can remember, so I started counting at year zero. It's still 2009 to me.

    Seriously, though, although you're technically right, practically speaking, I accept that most people think of 2010 as the first year of the '10s, just as most people thought of 2000 as the first year of the new millennium. Yeah, pedantically speaking they're wrong, but it doesn't really make a difference and people tend to hate "that guy" who feels the compulsive need to correct everyone.

    If you're programming software that has to calculate time differentials across the BC/AD boundary, then by gummy, have at it. But otherwise, my advice is to not make an issue of it. Choose more worthwhile battles to fight, lest people not pay attention to you when you are arguing about something important because you make all skirmishes into full-scale battles.

  18. Re:Africa is fungible and unpleasant by Weedhopper · · Score: 3, Interesting

    To promote aid in most regions of Africa, you have to be prepared to deliver that aid against armed resistance, or accept that that aid might be coopted to feed the army that oppresses people who need aid. That's not really helping.

    I've worked in medical/humanitarian for the better part of a decade, mostly in Africa, in some of the most active conflict areas. I have worked in Darfur, eastern Congo/the Kivus, northern Uganda, etc during some of the peaks in violence and insecurity. I have never delivered aid against armed resistance, nor do I know anyone or any organization who has. That's movie/TV stuff, not reality.

    Second, of course aid will be coopted, redirected or siphoned to various armed groups. That is the nature of armed groups, to take by force.

    The "not really helping" comment - actually, the entire paragraph reveals your naivety - it is impossible to provide aid without a diversion, either into the grey/black markets, pockets of armed factions, open markets.

    I really do want to help these folk, and I can think of no better way to do that than to repeat the message of the great (and missed) Sam Kinnison: Move to where the food is. You're in a freaking desert where things don't grow. MOVE.

    An ignorant joke that only makes sense or is funny when the listener has no knowledge of the subject.

    The mostly heavily populated areas of Africa are temperate. Humans evolved on the African high plains. Think about it.