Product Distribution in Rural Africa (“Amazon.com for the developing world”)
Manufactured goods can improve the lives of poor people drastically at very little cost. Some low-cost frequent buys are already well-distributed, like soap and prepaid phones. But bigger-ticket items are not—for example, hand carts and solar powered lanterns. Existing microfinance structures and NGOs can help farmers obtain these items, and the items’ high utility quickly allows the farmer to repay any loan. However, the gap is distribution: the farmers don’t know that the items exist, and if they found out about the item, they would still have trouble getting it.
The idea is to develop a distribution network. This is not an easy task. To help farmers learn about the goods, you could distribute brochures via NGOs and the microfinance system. To transport the goods, use group buys to lower the costs, and the bus network seems potentially viable for small deliveries. In a few years, the internet and smartphones will be widely distributed in the developing world, so the possibilities for a technology-based platform will start to come into play. This is a slow, long-term idea; there will not be any cashing out anytime soon, and it’s going to be a painful grind. That said, I think it’s an enormous business with a huge positive impact on the world.
Note: I’m working on another startup right now and don’t intend to switch ideas until this one is done, so this is a long-term play. But I figured I’d post the idea anyway, see if people have interest or special insight. I know someone who’s started an NGO to produce hand carts (http://anzacart.org) as well as some people in the optimal philanthropy community, who presumably have connections via NGOs to Africa.
Product Distribution in Rural Africa (“Amazon.com for the developing world”)
Manufactured goods can improve the lives of poor people drastically at very little cost. Some low-cost frequent buys are already well-distributed, like soap and prepaid phones. But bigger-ticket items are not—for example, hand carts and solar powered lanterns. Existing microfinance structures and NGOs can help farmers obtain these items, and the items’ high utility quickly allows the farmer to repay any loan. However, the gap is distribution: the farmers don’t know that the items exist, and if they found out about the item, they would still have trouble getting it.
The idea is to develop a distribution network. This is not an easy task. To help farmers learn about the goods, you could distribute brochures via NGOs and the microfinance system. To transport the goods, use group buys to lower the costs, and the bus network seems potentially viable for small deliveries. In a few years, the internet and smartphones will be widely distributed in the developing world, so the possibilities for a technology-based platform will start to come into play. This is a slow, long-term idea; there will not be any cashing out anytime soon, and it’s going to be a painful grind. That said, I think it’s an enormous business with a huge positive impact on the world.
Note: I’m working on another startup right now and don’t intend to switch ideas until this one is done, so this is a long-term play. But I figured I’d post the idea anyway, see if people have interest or special insight. I know someone who’s started an NGO to produce hand carts (http://anzacart.org) as well as some people in the optimal philanthropy community, who presumably have connections via NGOs to Africa.