Cell phones are common in Africa and most adults throughout Africa now own at least one (PEW).

cell-phones-Africa

Africans can use them to get crucial information about crop prices, negotiate business, stay in contact with friends and relatives, and learn about opportunities they would otherwise not be able to take advantage of. Even smartphones are increasingly common, representing about about 1/3 of all cell connections in Africa now and expected to rise to 50% by 2020. (GSMA).

Notably, smartphones allow for algorithmic micro-loans to be issued without traditional documentation by looking at the text messages and applications installed (WSJ, Bloomberg). While this might represent a privacy concern, it is a small price to pay for access to crucial financial capital that people would otherwise be denied. In addition, these companies can offer much lower interest rates since no human is involved in the loan approval process, making micro-loans of a few US dollars profitable and able to be issued widely.