Sunday, July 12, 2020

Kenyans turning to mobile loans in times of COVID-19

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Kanika Bajaj

Article Title

Kenyans turning to mobile loans in times of COVID-19

Publisher

Global Views 360

Publication Date

July 12, 2020

URL

People of Kenya

People of Kenya | Source: Flightlog via Wikimedia

The economic impact of COVID-19 is felt on the personal finance of people across the world who are looking for ways to tide over the situation. In Kenya, people are lapping the short-term credit in the form of digital loans by mobile money operators. The number of people taking digital loans has doubled during the COVId-19 induced lockdown period.

Boston Consulting Group's Consumer Sentiments Survey conducted in April and May 2020 reported that "In May, 29 percent responded that they had taken out a short-term loan, compared to 16 percent in April. Mobile money operators were the most common sources of this credit”

Kenya is a pioneer in using mobile money transfer services as the key tool for providing financial inclusion to its citizens. A simple money transfer service, M-PESA launched in 2007 has transformed the financial service industry in Kenya. Today mobile money operators are providing multiple services like digital loans, marketplace for small businesses and farmers.

Digital loans are easy to process and disbursed but there are concerns of shaming the defaulters and compromising the data security of clients. The Digital Lenders Association of Kenya (DLAK) which is a body representing the digital lenders of Kenya has distanced from two of their members, Okash and Opesa over unethical practices. These mobile apps have shared the details of defaulting customers with the moneylenders and asking them to recover the money.

DLAK also stated that Opesa and Okash are known for attacking a client's data privacy which is against the Kenyan data protection laws and has additionally spoiled the reputation of digital leaders in Kenya.

In April 2020, Central Bank of Kenya barred unregulated digital mobile lenders from forwarding the names of loan defaulters to credit reference bureaus. A huge number of Kenyans have been recorded on Credit Reference Bureaus by digital money lenders for loans as little as $5.

Central Bank of Kenya governor Patrick Njoroge told during a press conference in May 2020 that the central bank in consultation with the mobile money operators and digital lenders is presently working to develop a model where the borrowers are protected from mistreatment of online moneylenders.

The borrowers are looking up to the regulatory authorities and the industry bodies to come up with a mechanism which will protect their interest in times of such a health and economic emergency.

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February 4, 2021 5:12 PM

Vaccine Nationalism: The Ethical Conundrum in the age of Global Pandemic

O People! Make way for the latest horrendous development of the infamous year 2020. We have straight out of the oven, the freshest item on the menu of ethical conundrums “Vaccine Nationalism”.

It seems like the cure is as dangerous as people dying of the COVID-19. Currently, according to the WHO, six vaccines have reached phase 3 trials, while 25 vaccines are in the clinical evaluation phase and 139 in pre-clinical evaluation.

COVID-19 Vaccine Nationalism | Marian Kamensky via Cartoon Movement

When the pandemic hit different parts of the world, the first response of the humans was to attack supermarkets and hoard loads of groceries (yes, toilet papers too). Vaccine Nationalism is just analogous to hoarding toilet papers, except, it’s just a phenomenon that occurs when rich countries pay for vaccines in advance and hoard them. Don’t worry politicians are not doing what they did not promise: remember ‘America first?’ and ‘India first?’

A global initiative by WHO – ACT (Access to COVID-19 Tools) Accelerator- aims at a cumulative process of R&D, manufacturing, regulatory, purchasing and procurement needed to fight against COVID-19. Unfortunately, the USA, Russia, India, and China did not receive the initiative with much-needed enthusiasm. The WHO also came up with another program called COVAX facility, that aims to provide 2 billion doses of vaccine by the end of the next year for middle and low-income countries.

Source: Brandon Reynolds via BusinessDay

The US compared its operation ‘Warp speed’ to the oxygen masks dropping during the flights. Russia tried to jump ahead, attempting to create a Sputnik moment. Russian President announced Russia curated the first COVID-19 vaccine called Sputnik V. The vaccines are still under trials and need much more necessary testing to work. Safe to say, Russia’s plan backfired earning them international scorn.

Vaccine nationalism will lead to global dysfunction. Rich countries will benefit as they can bid for the vaccine at high prices. Such high prices will lead to a disaster for the low-income countries, adding to their already deficient health care. These desperate countries will have no choice but to buy vaccines driving their economies in an even worse condition. Additionally, a single country having a vaccine will not help the problem in any way at all. Some nations have already gambled their chances of acquiring vaccines by speaking against other countries.

The unethical practice of Vaccine Nationalism is not at all unexpected. A bid against humanity is not entirely new. Similar responses were noted in 2009 when the world H1N1 flu crisis hit. Australia came up with a vaccine and sold 6,00,00 doses to the USA, blocking the exports to other countries. Once the effect of flu started diminishing, rich countries donated the vaccines to low-income nations. A similar situation happened in 2014 when the EBOLA crisis hit.

Politics aside, scientists are staying out of it and trying to work together for greater good. Instead of publishing research papers they are working collaboratively throughout the world. We must not forget that finding a cure or a significant role can earn a lot of scientists, assets, reputation, and promotions. Some lure away and are suspicious of sharing their work as well.

Rabindranath Tagore’s Portrait | Source: Wikimedia

When the search for a vaccine against such deadly disease mutates into a naked display of Vaccine Nationalism, Indian Nobel Laureate Rabindranath Tagore’s view on nationalism becomes an antidote. He believed in an idea of nationalism without borders. Tagore once described in a letter to his friend AM Bose that “the value of patriotism can never be greater than the value of humanity.”

It is a human tendency to compete and nature supports the fittest. How fit is it though to use strong nations’ ability to bully other unequipped nations? How generous is it to help others when they don’t even need help anymore? How ethical and moral is to block vaccine procurement for other countries for monetary and economic benefits?

These are some of the questions lost in the drumbeats of Vaccine Nationalism which is echoing across the continents. It's high time that concerned citizens should demand answers from their respective government to come clean on the real motive behind the call for developing a vaccine for global pandemic in a silo, when it actually needs global cooperation.

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