C informs how we structure a financial instrument for this target groups

For example

Can we have an instrument for saving at A and C that pays off at D and B

Can we model and insurance product that cover D and B ?

So we model instruments around the users seasonality 1/ https://twitter.com/prepaid_africa/status/1250059114992013318

First thing to do would be identifying value chains that are interdependent on cashflows

For example links between sokos and boda bodas at the borderland. If biashafa is slow at the borderland, you can expect both traders and service providers are facing similar issues /2

But an uber driver, might have a different pattern compared to a farmer

Once you strip out the pattern for a value chain, you can hone in an craft a financial product (for example) with a fair assessment of risk and opportunity /3

This why flexibility pays in markets like ours. It was my fist key lesson from prepaid.

If the payment schedule is flexible, then actors in this sector can adjust their payment plans accordingly. They can factor in your product into their budget and how they manage volatility /4

For example, the success of pre_paid airtime in Africa

Over 90% of mobile phone subscribers in sub saharan africa are on flexible prepaid mobile subscriptions /5

I recommend

How Nokia and Prepaid Airtime Fractionalization Gave Rise to Africa’s Digital Economy: Guest Post by Niti Bhan /6 https://kioneki.com/2019/11/17/how-nokia-and-prepaid-airtime-currency-gave-rise-to-africas-digital-economy-guest-post-by-niti-bhan/