Connecting the Dots on Platform Livelihoods

We live in a disjointed manner unable to see the individual threads that make up the fabric of our existence, until something sharp and ill-placed causes a run and everything begins to unravel. Electricity, Water and most recently Fuel costs have shot up ... what does this mean in relation to daily living? What is hidden in plain sight?

First, some baselines.

From the 2019, Population and Census we understand that;

• 75% (35.7 million) of our 47.6 million population is under the age of 35 with those between 18-35 years ... whom I call constitutional youth at just under 14 million. It is clear that we have a youth dividend;
• In addition, the rural population comprises 32,732, 596 making up 68.9% of the population. This is important to note due to the focus given to urban markets and centers of production;
• Unemployment, a factor of those with the ability to work but hold nothing steady stood at 39% (1.6 million)

From the Economic Survey of 2021 by the Kenya National Bureau of Statistics:

• Agriculture grew as a result of increased production of tea and food crops such as beans, rice, sorghum and millet;
• The manufacturing sector contracted with formal employment dropping by 10.3%;
• Construction saw and 11.8% growth and paved roads increased by 1,351 kilometers
• Credit to the private sector expanded by 8.4per cent to Ksh. 2,891.3 billion in 2020;
• 83% of recorded employment in 2020 was in the informal sector;
• Total domestic mobile call traffic hit 60.3 billion minutes in 2020

This baseline information is important because it provides great context for understanding the why and how of Kenya’s youth as they mature into a situation where the government has fallen short of creating an enabling environment that creates more formalized jobs. Formalized does not mean blue collar ... speaking more into the structure of enterprise in ways that allows for proper ‘value capture’ and ‘value extension’.

A recently released study by Qhala and Caribou Digital in partnership with the Mastercard Foundation looked at platform livelihoods of young people in Kenya in four sectors:

1. logistics (app-based delivery),
2. e-commerce by entrepreneurs running micro- and small enterprises (MSEs),
3. farming (with sales via digital platforms),
4. and the creative industries (specifically music and visual art).

'Platform livelihoods refer collectively to a variety of new ways of working, including gig work, e-commerce and social commerce, the sharing economy, and content creation'

Some opportunities are yet to be explored when one juxtaposes the outcomes from the report with the census and economic survey data.

Rural Audiences and Markets

Focus has been on urban markets forgetting that the majority of the population (68.9%) is still rural based and offer a rich market despite not being consolidated into nodes. A model to explore may be group purchases that are fulfilled weekly ... a different take on online subscription programs that we see in other markets, with lower tech digital channels like USSD. Looking at the financial services and telecoms sector, those who built infrastructure to address this demographic have gone on to grow market share. This infrastructure outlay is best suited for county governments and private sector ... build it and they will come. ?

Access to Credit and Financing

‘The totality of somebody’s digital livelihood is rarely as simple as one profile reflected on one platform - underneath and behind that platform profile lie interconnected resources, trade-offs, obligations, and opportunities.’ There’s no single view of those in the gig work vertical and it makes it difficult to access credit and financing that can be as granular to a day. The velocity of money here, and the amounts at play per user make for a lucrative pursuit.

Farm to Table to Wallet

Urban areas are consumption centers with production happening outside. Feeding urban populations remains a big opportunity that touches on farming, ecommerce and logistics. The margins in the traditional value chain are sufficient to support niche participation even with price disruption brought about by technology. Possible upside is stemming the traditional rural to urban migration as the opportunity stretches back with infrastructure ... as simple as 1,351 kilometers new paved roads and 4G connectivity increases.

Content Innovation

For multimedia creatives, a look at the most downloaded apps both local and international, will show a ‘longtail’ of consumption that can be monetized. In my opinion, traditional radio points the way. The ability to make content accessible will grow audience reach. New platforms like Safaricom base will also prove useful by funneling attention and exploring better revenue share models

104 pages choke full of insights. You can get your copy of the report and draw many more conclusions and perhaps identify many other ways you can participate in the platform economy.

Platform Livelihoods – Surviving and Thriving in Digital Marketplaces https://bit.ly/platformlivelihoods ?