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The Developmental Potential of Frugal Innovation Among Mobile Money Agents in Kitwe, Zambia

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Global Labour in Distress, Volume I

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Abstract

Existing conceptual debates on frugal innovation have either welcomed its contribution to development or stressed its exploitative capitalist underpinnings. Based on a qualitative survey among 52 mobile money agents and tellers in Kitwe, Zambia, the developmental potential of frugal innovation will be empirically assessed. Can the frugal innovation of mobile money become an inclusive innovation for the agents and tellers in Kitwe? This question will be tackled by focusing on entrepreneurship and labour relations. It is argued that mobile money can indeed generate employment and foster entrepreneurship, but that it can simultaneously contribute to informalisation and create new socio-economic inequalities. Empirical studies, thus, provide an opportunity to reach a more nuanced understanding of the relationship between frugal innovation and development.

Les débats conceptuels existants sur l’innovation frugale ont soit accueilli favorablement sa contribution au développement, soit mis l’accent sur ses fondements capitalistes abusifs. En se basant sur une enquête qualitative auprès de 52 agents et caissiers d’argent mobile à Kitwe, en Zambie, le potentiel de développement de l’innovation frugale sera évalué de façon empirique. L’innovation frugale de l’argent mobile peut-elle devenir une innovation inclusive pour les agents et les caissiers de Kitwe? Cette question sera abordée en mettant l’accent sur l’entreprenariat et les relations de travail. On fait valoir que l’argent mobile peut effectivement engendrer de l’emploi et favoriser l’entreprenariat, mais qu’il peut simultanément contribuer à l’informalisation et créer de nouvelles inégalités socio-économiques. Les études empiriques permettent donc de comprendre de façon plus nuancée la relation entre l’innovation frugale et le développement.

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Notes

  1. 1.

    A full list of interviews is provided at the end of this chapter.

  2. 2.

    The exchange rate was 1 Euro to 10,127 Zambian Kwacha on 1 September 2015: http://www.xe.com/currencytables/?from=ZMW&date=2015-09-01

  3. 3.

    In August 2014, Zoona reported having 650+ agents, 600,000+ customers (those who transact at least once every 90 days) and a monthly average transaction volume of $25,000,000+.

  4. 4.

    I thank Edna Kabala-Litana for her invaluable research assistance.

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List of Interviews

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Acknowledgements

I wish to thank Edna Kabala-Litana for her invaluable research assistance. The Centre for Frugal Innovation in Africa is thanked for the post-doctoral grant which made this research possible. Earlier versions of this chapter were presented at seminars and workshops in the Hague, Leiden and Eindhoven. I am grateful for the feedback and encouragement received during these events. The two anonymous reviewers helped to sharpen the argument and contributed excellent suggestions.

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  1. Univeristy of Groningen, Groningen, The Netherlands

    Iva Peša

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  1. CAPP, Institute of Social and Political Sciences, Universidade de Lisboa, Lisbon, Portugal

    Pedro Goulart

  2. Department of Econometrics, Statistics and Applied Economics, AQR-IREA, University of Barcelona, Barcelona, Spain

    Raul Ramos

  3. Lisbon School of Economics and Management - ISEG, Universidade de Lisboa, Lisbon, Portugal

    Gianluca Ferrittu

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Peša, I. (2022). The Developmental Potential of Frugal Innovation Among Mobile Money Agents in Kitwe, Zambia. In: Goulart, P., Ramos, R., Ferrittu, G. (eds) Global Labour in Distress, Volume I. Palgrave Readers in Economics. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-89258-6_18

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  • DOI: https://doi.org/10.1007/978-3-030-89258-6_18

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