 All right, I'd like you to indulge me for just a second, okay? So I'm gonna try a little experiment with you. I don't know, and I'm not, you know, too hopeful, but let's see. Is there anybody here who by any chance speaks Swahili? All right, that's all right because I'm about to teach you two words and I just like, I'll start with the first one, it's call and response. Okay, so I'm going to say Habarigani, all right, and I'd like you guys to respond to me Mzuri, and what I'm asking you is, how are things? And I'd like you to say Mzuri, which is good. All right, so media evolution, Habarigani. Excellent, so now, now, you know, if things are as good as you've just shown me, then I'd like you to say Mzuri Sana, which is very good. Okay, so that's pretty much the entire Swahili lesson for you. So Mzuri Sana, so here we go, same call, you respond with Mzuri Sana. Media evolution, Habarigani. Perfect, perfect, perfect, thank you so much. Okay, yeah, give yourselves a hand please, that was great, I mean that for yeah, for your first Swahili lesson, I'm quite impressed. So I'd just like to start off with a question, which is, what part of Africa are you familiar with? Right, Geraldine covered a couple of very interesting points about where the continent is today, right at this moment. Over 1.2 billion people thereabouts, so pretty much neck and neck with China, but I mean China is ahead, we've considered that much. But like she said, over a thousand languages making it the most multilingual continent in the world. All right, and beyond that, if you look at the African population, right, about 35% now is considered middle class and this is growing. In terms of the GDP, right, Africa has remained consistent and remain growing even as the global recession has taken place and more specifically growth within China has minimized just a bit. Africa has kept growing at about 5% growth within its GDP. And if you look towards that and look towards the African people, there's something beyond just the numbers, beyond just the economics that has been one of the key drivers of this growth. And that's technology. Now I could have shown you any map here, I could have shown you the map of Facebook connections across the entire continent. I could have shown you the map of, you know, the different hubs, which hubs, labs, accelerators and startup incubators across the continent. Instead, I chose to show you this. This is an undersea cable map that represents about 11 years worth of investment into connecting the African continent to the world using the internet. And with this map right here, you're looking at over $4 trillion worth of investment. That's going to continue and this is from as far back as 1999. Now we're looking at about 8 to 10 cables here, which over time will become, you know, a lot more connected, especially inland. But this didn't happen in a vacuum, all right? Now the specific driver within technology that has been responsible for Africa's great growth has been the mobile phone. And if we just take a look at that, we begin to get some context to that middle class, to the new, you know, growth within Africa and specifically what's happening in technology. So by the end of this year, by the end of 2012, there's going to be over 735 estimated million mobile phone subscribers, right? Penetration on the continent now stands at over 65 percent, right? So the mobile is becoming the default device. It's the universal equalizer of things, of opportunity, and just opening up different options and we'll see a couple of them and the kind of trends and impact they've had on consumers. So if I was to pick a place, a place to show you what some of this looks like and means, I would pick East Africa and specifically, hey, I'm biased, I'd pick Kenya. I taught you Swahili just now, could you tell? So if I was to pick there, I'd pick stories and ideas from there that we can take and look at as broader signals that can be applied and adapted across the world. Take Uganda, for example, where there's more mobile phones than there are light bulbs, right? And in some particular parts of the continent, like South Africa, there's more SIM cards than there are people. So we're looking at a continent where the mobile phone is known better than any other device and 50 percent of all internet connections happen exclusively on the mobile phone. Now, like I said, I'll take us back to Kenya. So if we take a look at Kenya, Kenya is known generally for three things. One is domination, all right? Now I'm not going to do the running man and I won't embarrass myself by giving you a sprint or racing you to the door right now. But hey, the London Olympics, we didn't do too bad. If you ask me, if you go, if you get on Twitter and look for this, it's a big deal. Kenya didn't do too well. And yeah, we're kind of reeling from the consequences. Our egos and everything were crestfallen. But besides medals and the Olympics and athletics, we're also known for another thing, medals and the Mara. So the Masaimara, beautiful, majestic, scenic, beautiful, tropical, the wildebeest migration, you name it. These are the things which Kenya is known for. And sadly, I don't fall within either category, but hopefully this next one somehow sums up what I do. And that's the mobile. Now, the mobile phone, like I said, and I've just iterated, is really, really Africa's driving point right now. And this next chapter of innovation that I'm playing some way, shape, or form, trying to write and speak about. And there you have two of the largest players pretty much on the African continent today. On one side, we have the incumbent, the entry-level smartphone, the Nokia 1110 powerhouse. It does what it says on the box. It also has a torch, which means it has all sorts of interesting nicknames. I would bore you with one, but it's in Swahili. So somebody just corner me after the conference and I'll share it with you. On the other side is the Huawei Ideos phone. And that has been tremendous. So manufactured by the Chinese telecommunications manufacturer Huawei. And the Ideos phone has really been revolutionary, but we'll get to that in a short bit. There's been a change that's taken place in the past couple of weeks that is definitely worth noting. For the first time in history, Huawei has overtaken Sweden's own Ericsson as the leading telecommunications manufacturer in the world. So a tip of the scales now. That doesn't take away from the fact that Nokia will always be the powerhouse. They, the incumbent in Africa, will continue to be. But now that's taking place mostly at an entry-level point of view in terms of devices. And a feature phone point of view. The smartphone category, however, Huawei is running away with at the moment. And that was all down to this ephemeral, this one idea which everybody spoke of so highly until somebody actually went and did it. And that was the $100 smartphone. Now, this here, this little advert right here, in less than a year, gave Huawei about, it's estimated now over 50% of smartphone market share in Kenya. And that was unprecedented, right? So the little bundle you're seeing here is the device. An Android smartphone, a touchscreen device, full touch, including 600 megabytes of data and 1,000 shillings of airtime. I'm telling you, I could use 1,000 shillings of airtime right now, you know, I wouldn't turn it down. So that was a deal too good to put away. And for many people, this was their first experience upgrading from a feature phone to the internet. And that is what's driving the connections you heard. And hopefully by the end of the year, we'll continue to raise the number of people with internet access in Africa from the 150 million it stands at now to hopefully about 170 to 180. Now if we look specifically at the mobile and look for trends, especially within Kenya, what we'll find is that this device, according to some research by Mobi, is pretty much the device Kenyans are spending all their time on. In terms of media, it is the number one device with an average of 111 minutes per day. Now think of it like this, in a place where radio is almost ubiquitous, it's the one thing that's described, you know, goes far and wide across the continent. The mobile is overturning that assumption now. And as you can see here, when it comes to television and mobile, this dual screen behavior that we're seeing with Kenyans specifically and possibly the rest of Africa does bring about some interesting things. One of them being the availability of this device. You can grab it. I mean, one interesting thing which I probably forgot to mention is the average Sub-Saharan woman today touches her hair 37 times, all right? She touches her phone 82 times in a day, all right? And just so you know, for all of you, the global average is about 150. So by now I'm pretty sure you've looked away from me and already looked at your phone. I, you know, if I haven't held your attention for that long. But another thing is ease of use of this device, right? So people are continually adapting and will see some rapid prototyping of ideas coming from China towards the end of the presentation. And lastly, it's privacy, you know? It's you're not consuming this media than anyone else. It's you and it's something intimate, right? So those are the three driving factors to be on mobile. Social media, entertainment, and search, in that particular order, the three things that Africans and specifically Kenyans in this case seem to do. And mobile users spend 31% more on this device, right? On the phone itself than TV and radio, respectively. Now, in the world we live in today and specifically here in the developed world in the West and just outside of Africa and the global South, we're living in, as technology continues to grow, an app-centric world. So a world, you know, built on this idea that you have an application, you create it, users install it, and hey, Presto, you made bank, you made goods, you know, and maybe you moved to the valley, maybe you create your own little Silicon Valley where you are. But something interesting to find about this new African internet consumer, specifically the one who's using it on their phone, is that they prefer the mobile web over apps. Now what does this tell us? This tells us that they're rewriting the rules and to them, this is the new normal. For them, the application, it's cumbersome, you need to download it so there's an upfront cost, how am I going to get the data? But if I'm using a browser, if I'm using specifically the number one browser across the continent, Opera Mini, then for me I can have my Facebook in one tab, I can have your application somewhere else and be doing a whole host of things. And that is more appealing than the single one idea of doing one thing in an app at one given time. Not to discredit apps at all, but just in this specific case, something to note. Another interesting trend we'll see, and we continue to see on the continent, is these two giants, Google and Facebook. So across the world and in more developed markets, what we see is that search dominates. It's a number one website online. Second, we have, or second or third, you find Facebook. In Africa, on the mobile web, it's different. It's Facebook first, except in a handful of countries. And what does this tell us? This tells us there's a whole new opportunity possibly for a company like Facebook to help us rethink search. And so whether this means adding a new level of Facebook, possibly to the SIM card, so going to the lowest common denominator of mobile and embedding yourself there, who knows what it could open up for them. Google on the other hand, like with the IDOS, are going for devices and ecosystem and apps. And we're yet to see who the clear winner is there. That said, the two, some of the main drivers of innovation, aside from companies like that in Africa, tend to be the telecommunications companies. Here we have a pretty iconic image. The only reason it's iconic is because the company in, on the, I guess that's my right hand side, cancels, you can't see their full name. And on the left hand side, Safaricom, Kencel has probably rebranded about four times. It became CellTel, and then it became Zane, and then now it's Airtel, right? So for the consumer, a pretty disorienting experience. Safaricom has been consistent the last 10 or so years, and they've been responsible for, one thing that Geraldine mentioned, an incredible innovation known as M-Pesa. Now M-Pesa's premise is simple. I have a mobile phone, you have a mobile phone. This could be an iPhone, this could be a Nokia 1110. What's the one common denominator between them? The SIM card, the SIM toolkit. And they're in, using SMS technology, they've created what 17 million Kenyans use daily as a mobile money transaction platform. And you could be anywhere geographically, and whether you step up to a gentleman in an M-Pesa t-shirt, or you're stepping in a room about this size, full of agents ready for you to remove your money, this has completely disrupted banking, finance, and payments as we know it. And what that's led to is something interesting, innovation happening at the fringes, at the end of the spectrum really. And with this now, the question is not just M-Pesa as a revolutionary idea, it's mobile money and then what? So all banks now have you being able to deposit and withdraw through mobile money. There's more mobile money agents in the country than there are branches for banks. There's about 30,000. And all of these 30,000, like I said, could be an individual standing at a corner, could be a room this size. And that's really forced businesses and people to innovate on the layer above mobile money. The three cards you see there are quite interesting. The first one at the top is by a local bank. And what they've created is effectively a credit, something that functions as a credit card, at least with any interface outside of the card, but is topped up by mobile money, right? The second thing you see there is actually by Google and that's an NFC experiment. So using near-field communication, that is attempting to connect my Gmail account, my mobile money account, and the way I travel. So that Beba card, I enter a bus and it's swiped up against an Android phone with near-field communication. And what that allows me to do is pay for my trip. Pretty revolutionary from Google and pretty hush-hush if you ask me. The third is quite interesting itself. The nation media group is one of the oldest print television radio publishers in the country. And just that, a big media player. So what were they thinking when they created a card that allowed the diaspora to, using this interface of this card, be able to send in foreign currency remittances. And they began to really, really edge out banks from the equation. They know as a publisher, they hold very high standing with the diaspora. And now, besides just pushing out content, they're looking to get in payments, partnering up with a local bank. And they've created, effectively, a virtual currency that can talk between cards and between these cards and mobile money. So just showing really, when you've set the innovation layer and you set Africa as the context and mobile as the constraint, what more will you get on top of that? I don't know how many of you are familiar with this phrase right here, but please call me a very interesting innovation from Africa. Now, 98% of Africa is prepaid, right? Now, what this means is that we run out of air time very often, including myself. I don't even know how much air time I have now. Now, that said, yeah, it's true. I really don't. I'm roaming, so fingers crossed, it could be bad. Haven't turned on my data, though. So what I can do, even from here, right at this stage right now, is I can take my phone and I can send a free message using the telecom provider to anybody I like, anybody in Kenya, asking them to call me. So I'll send a little hash code, a USSD code, to get a little technical. And what it'll do is it'll send a message to this other person saying, from my number, please call me, thank you. And they've innovated on top of this, and these are some of the most popular advertising opportunities you can believe. The bottom of the pyramid has made this a language. If I send you this morning for bread and milk, and I don't get some from the neighbor, I'll send you three, please call me, to say, bring it. I'll send you two to say, no thanks. So already you've got an entire new language developing on top of what was ideally a problem, which people don't have air time, but give them an opportunity. You've created advertising for yourself and a whole subset of language. The SIM card, I mentioned this earlier. Abayima is a very, very interesting idea coming out of Uganda. Now what that assumes is if you're in a repressive regime, take Egypt, for example, where they shut down the internet and they begin to monitor all SMS transactions and communication. What then? What then for the journalist? What then for the activist? And that was the same question that struck John Gosien, a number of people working out of Kampala, and what they came up with was Abayima. Abayima works in a pretty simple way. It says, if I don't have access to a computer, if all I have is a mobile phone and possibly electricity, how would we pass long messages in a repressive regime where things are being monitored and we can't trust that the communication between us will be clean? What they've allowed the SIM card to do now is become a publishing platform. And so what journalists and activists can do now is they can embed messages directly onto SIM cards and either transfer them, possibly in between someone under someone's collar or better yet, in any means possible. And you can begin to publish on a number of SIM cards, distribute them. And this here already is looking like not only for Uganda in the elections, but from here on out is something that goes underneath the radar should the government or any regime get their hands muddled with telecommunications providers. Lastly, like I mentioned, an idea on rapid prototyping. So what you see there, those two devices are born out of very African-centric needs the first one is by a company by the name of My Phone. And what My Phone did is they basically capitalized on an opportunity which was Barack Obama's inauguration. And what they did is they quickly prototyped a phone, the Obama phone, and laid out an ad about this big in the paper saying here's the Obama phone collector's item and priced it at a ridiculously affordable amount and they were sold out in days. This was manufactured in China, but really building on Kenya's innate attraction. To Mr. Barack Obama himself. And who knows where they win this next election? I bet we'll see a tablet, I'm just saying. But last but not least is Techno. Now, Techno is a Chinese manufacturer that's been very shrewd, very well embedded in the market, really, really going for the bottom of the pyramid and giving the likes of Nokia a run for their money. Now what they've done here, like I said, I have maybe two phones here and when I'm back home I have possibly more. Each person has a number of phones and a number of SIM cards. What you're seeing there is a four SIM card phone. That's four SIM cards, four different networks, four different data carriers, whatever you like. And that's them responding to a unique need. Even though now there's what we call number portability, that's still something which they chose to address. Showing that if you choose to look for the African need and the opportunities at the edges, you can address something and find a great opportunity. Last but not least, I'll end with this. Luthuli Avenue. Don't Google it. Might be some not-safe-for-work links. It's an interesting street, but what this is, this is one of the capitals of commerce in Nairobi. This busy street is home to lots and lots of mobile electronics, Gizmos. You could prop the day the iPhone 5, or weeks after the iPhone 5 comes out, I'm not kidding. I could walk down that street somewhere and someone will call me into a corner, a back room and say, iPhone 5, I got it right here. But the thing about this place is that the needs and how much of an epicenter this is for rural Kenya and how much of a sharp distribution chain that you can strike just by conversations and a day here. The thing I'd like to leave you guys with and the challenge is that sitting in this room with me now is one of the best histories of great design, of really shaping the way we use and interact with devices, with technology, and with all tools that we surround ourselves with. But in Africa lies the opportunity and talent is still the issue, right? Ideas are there, but sometimes taking advantage of them and walking through a process to find the need is an opportunity. And as you can see here, techno and Samsung may have beat you to it, but they can't take away that intellect. And what I'd like to see on behalf of Africa is not just welcome, but Habari Gani also means something else. It means, depending on how you ask it, you know, like, what's up, right? And if it's good things, you would reply? Oh, come on, you're going to do better than that. You would reply? Perfect, thank you very much.