Implementing an Address System in Uganda1259337/FULLTEXT01.pdfthis thesis further emphasize the importance of a national wide, all-compassing address system that reaches all citizens.

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DEGREE PROJECT IN TECHNOLOGY AND ECONOMICS,

SECOND CYCLE, 30 CREDITS

STOCKHOLM, SWEDEN 2018

Implementing an Address

System in Uganda

How will it Affect Commerce?

THERESE JERNBECK

KTH

SKOLAN FÖR INDUSTRIELL TEKNIK OCH MANAGEMENT

KTH

SKOLAN FÖR INDUSTRIELL TEKNIK OCH MANAGEMENT

ii

iii

Implementing an Address System in Uganda –

How will it Affect Commerce?

By

Therese Jernbeck

Master of Science Thesis INDEK 2018:116

KTH Industrial Engineering and Management

Industrial Management

SE-100 44 STOCKHOLM

iv

Hur påverkas handeln av införandet av ett

adressystem i Uganda?

Av

Therese Jernbeck

Examensarbete INDEK 2018:116

KTH Industriell teknik och management

Industriell ekonomi och organisation

SE-100 44 STOCKHOLM

v

Master of Science Thesis INDEK 2018:116

Implementing an Address System in Uganda

– How Will it Affect Commerce?

Therese Jernbeck

Approved

2018-June-07

Examiner

Pontus Braunerhjelm

Supervisor

Kristina Nyström

Abstract

Uganda is a low-income country in eastern Africa which has experienced social and economic

improvements since the mobile phone was launched (Deloitte, GSMA, and Cisco, 2012). The

positive attitude towards mobile solutions contributes to the country´s growth in the

international world, even if some circumstances are blocking the full potentials (African

Development Bank, 2014).

Current research regarding Uganda´s need for an address system is lacking. Based on six (6)

interviews with people who have worked with business environments and infrastructure, this

thesis examines how a mobile-based address system can enhance Uganda’s trading situation

via improving time efficiency, opportunities, accessibilities, collaboration, and delivery. The

formation of a physical address system has started in Kampala, the capital, but the results from

this thesis further emphasize the importance of a national wide, all-compassing address system

that reaches all citizens.

The conclusion of this thesis shows how the standard of living, the business environment, the

public sector, entrepreneurs, market entry, services, and commerce would benefit from the

implementation of an address system in a sustainable way in Uganda. It occurs mainly through

improved infrastructure, delivery system, navigation, service availability, and transportation.

This has a potential to improve time and cost efficiency for daily activities.

Keywords: Uganda, address system, digital solution, infrastructure, commerce

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Examensarbete INDEK 2018:116

Hur påverkas handeln av införande av

ett adressystem i Uganda?

Therese Jernbeck

Godkänt

2018-Juni-07

Examinator

Pontus Braunerhjelm

Handledare

Kristina Nyström

Sammanfattning

Uganda är ett låginkomstland i östra Afrika där både ekonomisk och social utveckling har

frodats sedan lanseringen av mobiltelefoni (Deloitte, GSMA, and Cisco, 2012). Att ugandier är

positivt inställda till utvecklingen och användningen av mobilteknologi är väsentligt för att den

internationella handeln ska kunna växa. I dagsläget finns olika faktorer som hindrar utveckling

i landet (African Development Bank, 2014).

Det saknas aktuell forskning gällande Ugandas behov av ett adressystem. Den här uppsatsen är

baserad på intervjuer med 6 personer som har arbetat med affärsklimat och infrastruktur. Denna

kvalitativa studie undersöker hur ett digitalt baserat adressystem kan bidra till en förbättrad

handel för Uganda genom förbättrad tidseffektivitet, fler möjligheter, tillgänglighet, samarbete

och leveranser. Lanseringen av fysiska adresser har börjat i huvudstaden, Kampala. Däremot

tyder resultatet från den här uppsatsen på att ett nationellt etablerat, nåbart och flitigt använt

adressystem skulle gynna Ugandas ekonomi.

Slutsatsen är att levnadsstandard, affärsklimat, den offentliga sektorn, entreprenörskap,

marknader, tjänster och handel skulle främjas på ett hållbart sätt av en rikstäckande

implementering av ett adressystem. Det sker genom förbättrad infrastruktur, leveranssystem,

navigationsmöjligheter samt tillgänglighet till tjänster och transport. Detta förväntas resultera i

ökad tids- och kostnadseffektivitet för dagliga affärsaktiviteter.

Nyckelord: Uganda, adressystem, digitala lösningar, infrastruktur, handel

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Table of content

Abstract ...................................................................................................................................... v

Sammanfattning ........................................................................................................................ vi

Table of content ........................................................................................................................ vii

Acknowledgement ...................................................................................................................... x

1. Introduction ......................................................................................................................... 1

1.1. Research question ........................................................................................................ 1

1.2. Sustainability ............................................................................................................... 2

1.3. Contribution to the research community ..................................................................... 2

1.4. Content......................................................................................................................... 3

2. Background of Uganda ....................................................................................................... 4

2.1. General information ..................................................................................................... 4

2.2. Currently in Uganda .................................................................................................... 5

2.3. Mobile appearance in Uganda ..................................................................................... 6

2.4. Verbal communication and cash.................................................................................. 7

3. Map Project ......................................................................................................................... 9

3.1. About MAP project ..................................................................................................... 9

3.2. Map Project’s solutions, technology, and details ....................................................... 10

4. Present initiatives which affect Uganda ............................................................................ 12

4.1. Smartafrica.org .......................................................................................................... 12

4.2. What3words.com ....................................................................................................... 13

4.3. UN – Sustainable development goals ........................................................................ 13

4.4. E-commerce shops ..................................................................................................... 14

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4.5. African Union ............................................................................................................ 15

5. Theoretical Framework ..................................................................................................... 16

5.1. Markets and the participants ...................................................................................... 16

5.2. Institutions and transaction condition ........................................................................ 17

5.3. Time and delivery ...................................................................................................... 19

5.4. Inputs and reach out ................................................................................................... 19

5.5. Summary of the Theoretical framework .................................................................... 20

6. Possible negative outcomes when implementing a national address system .................... 21

7. Recent cases where new physical addresses have been implemented .............................. 22

7.1. Ghana ......................................................................................................................... 22

7.2. South Korea ............................................................................................................... 22

7.3. Kenya ......................................................................................................................... 23

8. Previous literature ............................................................................................................. 24

8.1. Opportunities and obstacles..................................................................................... 24

8.2. Results from mobile technology ................................................................................ 24

8.3. Mobile account ......................................................................................................... 25

8.4. Social class ................................................................................................................ 27

8.5. Global interaction ...................................................................................................... 28

8.6. Summary of previous literature ................................................................................. 29

9. The contribution of this thesis ........................................................................................... 30

9.1. Form a stable base and possibilities .......................................................................... 30

9.2. Contribution to sustainability and research frontier .................................................. 30

10. Methodology ................................................................................................................. 32

10.1. Qualitative research method .................................................................................. 32

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10.2. Confronted limitations and problems ..................................................................... 33

11. Empirical analysis ......................................................................................................... 35

11.1. Benedetta Lerva ..................................................................................................... 35

11.2. Mike Debelak ......................................................................................................... 37

11.3. Sandra Attermo ................................................................................................... 38

11.4. Andrew Byaruhanga .............................................................................................. 42

11.5. Julia Torstensson .................................................................................................... 44

12. Analysis; Key point and summary of the interviews .................................................... 48

12.1. Change is needed ................................................................................................... 48

12.2. Presence, similarities, and relations ....................................................................... 49

12.3. Cognition ................................................................................................................ 50

12.4. Sustainability .......................................................................................................... 51

13. Conclusions and suggestions for future research .......................................................... 53

13.1. Suggestions for future research .............................................................................. 54

14. References ..................................................................................................................... 55

15. Appendences ................................................................................................................. 63

15.1. Questions used as a base for interviews ................................................................. 63

x

Acknowledgement

Many thanks to Karoline Beronius at Map Project for your time, effort, and contribution to this

thesis. Through professional guidance and assistance, I would like to thank my advisor Kristina

Nyström. I also want to say thank you to the individuals who participated, gave feedback, and

supported me throughout the writing process.

www.kth.se

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1. Introduction

Stephen Hammond, the United Kingdom’s ‘Parliamentary Under Secretary of State for

Transport’ between 2012 and 2014, held a speech 8th of May 2014 where he pointed out how

“better transport infrastructure boosts trade and prosperity,” which leads to economic growth

(Hammond, 2014). With a focus on better transport networks and improved infrastructure, Mr.

Hammond used research from the ‘World Bank’ to announce how infrastructure development

is the most efficient structural growth policy which rises wealth worldwide. Creating the base

for collaboration opportunities and enhanced freight-ways improves the business environment.

In the past decades, the exponential growth of mobile phone usage has changed daily tasks and

services. Innovative mobile features open new opportunities in the society. These are key

factors for success and growth as they improve productivity and efficiency (GSMA, 2016).

Industries, organizations, and people experience higher economic standards through the

advances which brings convenience, time-efficiency, and reduced cost. However, some

countries do not have the necessary infrastructure, accesses, or legal system to optimize the

available technology. Uganda is considered a developing country, but their economy is growing

through the escalating mobile technology (World Bank, 2018). SMS, mobile-money, the

Internet, and social media increases the efficiency in worldwide societies (GSMA, 2016).

Previous research has been done with regards to mobile adaptation, spread, costs, usage, and

its benefits, however, the increase in production and efficiency on a national level require other

basic infrastructure facilities, such as a well-functioning address system. Globally, tech-savvy

countries with booming economies do have well functional infrastructure, including address

systems (Manyika et al., 2012 and Statista, 2018). Some evidence shows beneficial outcomes

regarding optimal orientation, time consumption, and international trade through accessible

address system. By gathering information through interviews, this paper will investigate how a

mobile-based address-system would impact Uganda’s commerce. To the best of my knowledge,

no previous studies have investigated the importance of a national address system in Uganda

and the linkage to their economic growth and trade.

1.1. Research question

The aim of this thesis is to investigate how address infrastructure and a mobile-based address

system can contribute to Uganda’s commerce. Market players should be able to work in a

business environment where governmental policies stimulate economic flow and essential

sources are accessible. This qualitative-based research focuses on how an address system works

as the backbone for a society’s infrastructure. It can help lay the foundation which makes

Uganda reach higher standards and improved their commerce. With that said, the hypothesis of

this thesis is that an implementation of an address system in Uganda would favor commerce.

By interviewing people with experiences from different organizations, different circumstances,

research areas, and firms affected by the subject, a well-formed databank was used in this thesis.

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1.2. Sustainability

The goal of implementing an address system is to improve Uganda´s condition, in areas such

as commerce, in a sustainable way. Sustainability is made of three main pillars; economic,

social, and environmental sustainability. They all must balance in harmony to achieve long-run

true sustainability. Economic sustainability is defined as always accomplishing operational

profit through resource efficiency, allocation, and responsibility. Social sustainability refers to

maintenance, and how the community, organization, or country are shaped in a way which

generates social wellbeing. Whereas, environmental sustainability is reached as

synchronization of natural resources is balanced; the rate of usage and consumption are the

same as renewal and replacement regarding natural assets in a specific area. (Circular Ecology,

2017)

Theoretically, the fast penetration of technological solutions in Uganda should give rise to new

innovations, accessibilities, and new methods used for daily activities. As it becomes possible

for people to manage delivery, transportations, and navigation in a more time efficient and

convenient way, their productivity increases. Today it is important to be a part of the global

development in a way which is sustainable for the environment and lives surrounding us.

Addresses contribute to a more operative society, where it is possible to get services,

information, and tools needed to increase commerce and reach higher standards in a sustainable

way. Both businesses and individuals can experience economic growth and increased

commerce as the business environment improves and more formal activities are used, which is

contributing to public services. Map Project’s technological solution effects at least six of the

UNs sustainability goals in a positive way. These six goals deal with economic growth,

infrastructure, innovations, inequality, sustainability, justice, and partnership.

Faster and more effective transportations result in less deadweight loss regarding time and

money spending. It also has a positive effect on the environment as smarter and more efficient

transportation solutions are implemented.

1.3. Contribution to the research community

Research within mobile technology solutions and its contribution to economic development

have been conducted. Just as research regarding markets environment’s and government’s

impact on standards, growth, efficiency, and productivity in the society. GSMA (2016)

highlights how implementation of mobile technologies and innovations have resulted in

positive economic outcomes in the past, which supports the proposition that implementation of

a technologically based address system also would be beneficial. Recent address

implementations in countries like South Korea, Kenya, and Ghana show direct and indirect

standard improvements for the private-, business-, and public sector. E.g. OkHi (2018) points

out how complicity and accessibility, which are results from address implementation, improves

people’s abilities to reach higher standards, and become more efficient and productive in daily

tasks.

An address system improves the infrastructure as well as the registration system in Uganda.

When it becomes clear where people, buildings, and natural resources are located, researchers

and organizations can more easily collect information needed for valuable inventions. Mapping

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out and planning how to contribute in an optimizing way becomes easier and clearer. Data can

be collected and organized by location, time, surrounding, etc. As data-banks grow, new

research and development projects can take place, which can help the country progress and

grow in a sustainable way.

This thesis is unique as it analysis and gives proposition on how an implementation of an

address system can improve infrastructure, accessibilities, and commerce in a sustainable way

for Uganda. The proposition includes improvements for the whole population and decreases the

risk of income gaps and separations within the country.

1.4. Content

In section 1, Uganda’s background and an organization named Map Project, which is

developing a mobile application and platform for digital addresses, are introduced. Section 2

includes existing projects related to the subject and the theoretical perspective. Section 3

contains possible negative outcome regarding business factors and address systems. Recent

cases where a new address system has been implemented as well as previews literature are also

a part of this section. The next section, number 4, goes deeper into what this thesis can result

in, the hypothesis, and methodology. Section 5 is the empirical part; where information gathered

from the interview are summarized, and Map Projects operation is also presented. The last

section, number 6, concludes everything and suggestions for future research are given.

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2. Background of Uganda

The Republic of Uganda (Uganda) is ranked as one of the poorest countries in the world with a

GDP per capita of $1.848 (World Bank, 2017). Uganda is in eastern Africa with a population

of 42,8 million (2017) whereas only 20 % live in cities and 70 % of the labor force work within

agriculture (Ne.se, 2017). According to the World Bank (2018), Uganda has an urbanizing

population and in 2016 the population growth rate was 3.29 %. Corruption has long been a

problem in the area, and their trading balance is negative; import value is higher than the export

value (World Bank, 2018). However, the economic growth rate has been high for the past 20

years and new industries have entered the country. With growing industrialized cities, jobs were

created and many people from the countryside urbanized to earn money. Workers left their

families in the villages, which resulted in high remittance activities within the country

(Andersson et al., 2016); individuals work in the cities and sending money home to the family

on the countryside.

2.1. General information

Having a national civil registration helps the government with control, public service, structure,

economic flow, keeping track of residents, obtaining knowledge about business markets, tax

revenue arrangement, etc. The level of function and the structure of civil registration depends

on the country and changes across borders. Furthermore, different organizations like banks,

insurance, police, mobile operators, and postal offices are requiring individual’s personal

information, mainly found through civil registration, to offer their service or to be able to work

properly. According to the World Bank, only 29.9 % of all Ugandans had a complete birth

registration in 2011, and public service is close to non-existing. Corruption is a big problem in

the country, and contracts are hard to enforce because of the lacking legal system and service

availabilities related to it.

Cities usually have the most advantages in markets and accessories. Therefore, it can be

beneficial for an entrepreneur to start a project or firm where necessary services and

complements are accessible; often in urban areas. After that, the spread and spill-over will

eventually move towards the more rural areas, but only if the essential business environment

and demand are present for the product. This was the case for mobile networks in Africa which

had to wait for electricity to be implemented in an area before they could launch and create a

stable demand for their products. The networks were up and running in the cities where the

business environment supported the product. Meanwhile, areas close by started to demand the

product and created a market tension leading to changes in the business environment which

would fit the product; electricity was brought to the area. To conclude, supply and demand must

be met in a supportive environment for a product to create a market and be traded. As firms get

information and knowledge about their surroundings, they can make the best-fitted decisions

regarding operation strategies and profitability; “knowledge is power”.

Africa, in general, has skipped many steps throughout the development of technological

products and services, such as going straight to digital mobile solutions and skipping landlines

(Pew Research Center's Global Attitudes Project, 2015). Sometimes it is not an African country

which has developed a product, rather it originates from Asia or the western world, and then is

modified in Africa to fit their market environments and accessibilities. A report from GEM

(Global Entrepreneurship Monitor - 2014 Global Report, 2014) even shows how Uganda is one

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of the most entrepreneurial countries in the world. According to the report, opportunities and

individual attributes such as skill, intentions, and social values lead to development. The report

emphasizes the importance of entrepreneurial ecosystems, and how many countries that have

high entrepreneurial activity got the rate due to the limitations in providing income for living

in other ways; many people in Uganda must become entrepreneurs to make a living.

Expansion of electricity is an example where the market as well as the supply and demand sides,

are creating a need and a tension of the product, leading to a win-win situation: the population

has electricity which opened many new opportunities, and the firms expand their profitable

business. Solar power, which is very efficient in Africa, is booming thanks to the fit of

technology and the surrounding environment (Africa outlook, 2017). In this case, the

emergence and spread of electricity is a beneficial solution for everyone; the citizens,

businesses, entrepreneurship, social development, environment, and indirectly connected

industries. The same is accurate for mobile phones; the mobile operators used their knowledge

and assets to reach more users through expanding the networks outside of the cities (Maree et

al., 2013). Electricity created the necessary backbone for mobile networks to be implemented,

and subsequently reached more people who can benefit from mobile features and applications.

Effectivity and productivity can reach new levels in Uganda when an adequate infrastructure

and the business environment are established which support communication, transportation,

and collaboration; a physical address system might work as the base to make it come true.

2.2. Currently in Uganda

Uganda is a landlocked country and thereby is dependent on air or land transportation. Most

freights to Africa arrive by ship, which means that the products must go through other countries

before reaching Uganda. According to ‘Move Africa,’ checkpoints at country borders in Africa

are expensive to pass through and make prices of transported goods in Uganda even higher

compared to neighboring countries. Statistics show how freights through shipping have

increased in the past years, which makes inland transportation grow as well (Russell et al.,

2014). With high transportation costs, it is important for Uganda to have efficient packaging

logistics, infrastructure, and have a system which will allow products with similar destinations

to be bundled; “distance, density, and shipment size are key drivers of transportation costs”

(Russell et al., 2014). Most goods in Uganda start at regional wholesalers in Kampala to later

be distributed to small shopkeepers through cash exchange (Export.gov, 2017). It is worth

noting that most people in the country live in rural areas and are not directly considered potential

customers. Their lack of “existence” in a civil registration and on the map makes them non-

accessible, but this might be about to change.

Large online shops have emerged in Uganda that are mainly focused on selling to the civil

population. As of today, Jumia (Jumia Uganda, 2018) and Konga (Konga.com, 2018) are

considered two of the biggest e-commerce, online shops, in Africa. Both are involved in

projects focused on improving delivery issues and obstacles. Some of these regard storage and

method of shipping, while others regard just-in-time delivery, saving time, or development of

bundling solutions for products with similar destinations. Today only certain addresses (mainly

business offices) in the capital of Uganda can get delivery to their door, while other locations

use pick-up stations (Jumia Uganda, 2018). Here, a well-functioned and structured national

address system can improve online shopping organizations’ operation. Additionally, physical

addresses can also make it possible for the population to get more control over the trade flow,

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and thereby gain economic freedom; receiving needed products directly to the correct

destination can expand their own business efficiency, entrepreneurship, and planning.

Throughout the years, Uganda has developed and solved many problems in their own way. In

many cases, it is about getting around corruption and the government’s slow and costly working

processes. Consequently, many people are active in the informal market. According to statistics,

the inadequate business climate in the country makes it hard and time-consuming to start a

business in Uganda; “difficulties in starting a business, problems with construction permits, and

poor access to electricity puts Uganda in place 122 out of a total of 189 countries” (Andersson

et al., 2016). Most transactions in Uganda today occur in an informal way with the use of cash

where nothing is taxed or documented (Anderson, Learch, and Gardner, 2016).

2.3. Mobile appearance in Uganda

Today, the mobile technology has almost reached all corners of the world, new trading routes

are formed, collaboration across borders has become more common, and e-commerce occurs

daily; the global market is here to stay, and it is important to be a part of it (Altman, 2006).

During the past 50 years of mobile technology development, many daily tasks across the globe

have changed, resulting in more efficient socio-economic activities and increased GDP. In

1995, the first 1747 mobile subscribers1 were registered in Uganda compared to today’s number

which is above 22 million (World Bank, 2018). Recent numbers show how 21.87 % of the

population has internet access, 55 % of the people are mobile cellular subscribers2, and 0.888

% have a fixed telephone subscription (World Bank, 2018). The mobile launch has made

distance communication and transactions possible.

As mentioned the best infrastructure and services can be found in the cities; transportation,

markets, public service, newest technology, and international collaboration. Even so, the

development is hindered by barriers such as lack of infrastructure, corruption, lack of education,

lack of trust, and lack of access to markets in Uganda.

In 2009, Uganda’s biggest mobile operator MTN Uganda, Mobile Technology Networks,

introduced their mobile banking product called mobile money3 (MTN Uganda, 2018). MTN’s

introduction of mobile-money resulted in reduced travel cost, time savings, and made direct

payment transfers possible for Ugandans. Previously, people had to travel themselves back

1 “Mobile cellular telephone subscriptions are subscriptions to a public mobile telephone service that provide

access to the PSTN using cellular technology. The indicator includes (and is split into) the number of post-paid

subscriptions, and the number of active prepaid accounts (i.e. that have been used during the last three months).

The indicator applies to all mobile cellular subscriptions that offer voice communications. It excludes

subscriptions via data cards or USB modems, subscriptions to public mobile data services, private trunked

mobile radio, telepoint, radio paging and telemetry services” (Data.worldbank.org, 2018).

2 In 2017, according to data from the World Bank, 49.84% of the population was between 15 and 64 years old

(47.98% under 14 years old).

3 MTN also offer talk-time, SMS, internet connection (airtime), international calls, payment-solution (mobile-

money), Wi-Fi connector, send money to others, etc.

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home to handle over the cash earned because there was no home-address to give a potential

transporter and often it was too expensive to let someone else do it. That is to say, no formal

street names, signs, or numbers could describe a house or destination. Nowadays, individuals

can use mobile technology to send money, but products are still hard to get transported across

the country to a place without functional-, structured-, user-friendly-, and well-known

addresses.

2.4. Verbal communication and cash

On a local level, Ugandans use memory and landmarks to get around/orient and find a

destination. Describing a route often includes sentences like “follow the road until you see the

yellow house, then turn left.” For a non-local, deliveries and navigation are problematic, time-

consuming, and can be costly.

Prosperous and well-functioning societies of today have a supportive infrastructure, legal

systems, governmental structure, as well as a well-educated population. In Uganda, the present

situation of the business and society do impede the society from facilitating and optimizing the

usage of the available technology. The incomplete infrastructure, business registration system,

and registration of citizens result in many activities taking place in the informal sectors. The

informal trading and business actions, together with corruption, leads to a lacking tax collection

system. Ultimately, it all results in a poor public service system.

As a journal by Githinji et al. (2014) emphasized regarding countries nearby Kenya:

“The study takes a great consideration at Information and Communication

Technology (ICT) as an infrastructure for revenue collection… Most of the

revenue collected is either wasted due to lack of proper data bank, recovery

system, proper records, or poor ways of revenue collection by use of manual

methods e.g. issuing of receipts manual to confirm payment but with no clear

records due to unscrupulous employees issuing counterfeit receipts. This is a

major drawback in the growth and development of these counties.” (page 239-

240)

This can come to a change as the new technology permeates through Africa which allows new

services such as Map Project system to make fixed digital addresses available. A well-

functioning addressing system facilitates the registration and formalization of small businesses

and boosts the growing e-commerce sector. E-commerce, online activities, and online payments

are traceable; contribute to transparency and formalization and are easier to tax (Beronius,

2018). However, low level of education and experience in using tech solutions affects the

adaptation rate and usage of new technology. Regarding a launch of an address system, there

are many aspects to consider. Creating a database, well-supporting technology, and assembling

possible signs requires time and money. Moreover, creating consensus around the new system

as to who is responsible, and who has the mandate poses are additional challenges. Addresses

are a sensitive matter and so gaining the public’s interest and acceptance of the new system is

often challenging and requires major sensitization efforts. Finally, an additional obstacle is the

low-level of map literacy in Uganda (Mapstudio 2016).

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Often Uganda’s problems can be connected to the quote: “Which came first, the chicken or the

egg?” Many people in Uganda do not know or understand what is available and how it can

benefit them, mainly because they have not experienced or seen the new good/service in place.

The poor technological capability is one of the major constraints which prevents sustainable

development (African Development Bank, 2014). To build on that, will the availability of a

mobile-based address system lead to high adaption, penetration, and increased learning rate of

the application (including understanding maps and mobile features)? These changes could

result in improved delivery, collaboration opportunities, confidence in businesses activities, and

more international trade. Indirectly, these changes will also benefit sustainable development,

economic growth, and improve international commerce (Un.org, 2008).

Using mobile technology to solve the address system problem can be easier and faster than

putting up signs and spreading the word mouth to mouth. Since most Ugandans have a mobile

phone (even more have access to one), and the adaptation rate is high, using mobile technology

is a way to grow with the development technology (World Bank, 2018). Indirect effects of the

address system include increased entrepreneurship and innovative creations via new

accessibilities; new markets, new contacts, and new information. Thereby, more competitive

markets are created, which stimulates the business growth and development in Uganda

(Recklies, 2015).

Steady and sustainable development will be difficult to achieve without basic infrastructure,

including an address system. An indirect effect of the new technology is the increase of service-

oriented organizations and more international connections associated with the new technology

(Quinn, 1987). Consequently, the government, economy, and society can be affected in a

positive way through higher productivity, reaching new markets, less black market-

transactions, better and faster communication, and connections to different market players, both

on the national and international level.

To conclude, physical addresses creates structure in the society, gives valuable information to

the government (civil information, tax revenue, etc.), is important regarding proof of existence,

leads to faster delivery, improves infrastructure, and it is putting both individuals and firms on

the map. When the necessary backbone is implemented, opportunities are established.

Stimulation of entrance and innovations increases product choices in markets and thereby

increases both customers utility and international trade. Corruption and the government's

operational strategies can prevent an open market to be formed. The right complementary

services must be accessible, a trustworthy legal system must be used, and a supporting business

environment must be present to help the region optimize operations and growth.

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3. Map Project

MAP Project Sweden AB is a Swedish start-up that is developing a mobile application and

platform to allow individuals to register a precise, complete, and easy to use digital address.

The address is based on the GPS coordinate, available national address data, landmarks,

pictures, and route description. To companies and organizations dependent accurate addressing

for identification and location, Map Project provides addressing as a service. For individuals, it

will always be free. Map Project has been bootstrapped since the start and supported by soft

funds, mainly from the Swedish Innovation Agency – Vinnova.

Uganda, like many African countries, has seen substantial socio-economic development over

the past 15 years resulting in increased purchasing power among working and middle classes.

Access to online and mobile payment (and banking) services means that more people have

knowledge of new goods and services, and even the means to pay for them. Yet, many people

are unable to get access to these goods and services because they do not have an adequate

address that is accepted by the providers. At this point, Amazon, DHL, and other global

companies do not deliver to private households in Uganda.

For example; if you would like to order a new computer from Amazon.com to

Kampala, online trader will be used. The trader will order the product to their

office, which often is placed in the USA, repackage it and ship it to a co-worker

in Kampala. The co-worker will contact the customer through e.g. Facebook and

tell them where to pick it up. Normally, a computer´s shipping cost is around 150

dollar and for a mobile approximately 75 dollars. This means a lot of people

cannot afford it even if they were able to afford the actual tool; computer or

mobile phone. Says Karoline Beronius, CEO of MAP project.

One piece of the puzzle is missing to optimize the international trading situation, and a well-

structured and functional address system might be the piece. E-commerce is high on the agenda

in East Africa for several reasons; it promises economic growth through the development of a

formal sector, which means effective taxation through VAT for redistribution of wealth and

development of government services (Beronius, 2018). E-commerce is by nature online, more

transparent and part of the formal markets. The formalization of labor markets is essential to

creating decent work for all and subsequently developing and protecting workers’ rights. E-

commerce is currently growing fast around the globe, but inadequate infrastructure and

addressing systems prevents development and provides a latent demand for goods and services.

The new technologies create opportunities to fill this void in countries like Uganda. Map

Projects aim of implementing a technologically based address system can help the efficiency

and productivity in the society by affecting the business environment, time efficiency,

deliveries, etc.

3.1. About MAP project

“Behind the petrol station, take the street that leads to where the church once stood, our house

is on the right after the third mango tree, the door is grey.”

It is estimated that 4 billion people worldwide lack an adequate precise address, knowledge

about their address, or how to use their address (Map Project, 2017). Map Project is a Swedish

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start-up which uses modern technology to respond to this global challenge. Being on the map

means that you exist in the eyes of others. Civil rights, economic rights, access to financial

services, insurance, e-commerce, and getting emergency help are just a few things which can

be available when a well-structured, functional, and easy to use address system is applied in an

area. By being on the map people exist in more circumstances and can use that information as

support/evidence when dealing with organizations and tasks.

Map Project is a response to challenges identified during more than 10 years of collaboration

with partners in countries like Uganda and Honduras to improve access to essential services

through the application of new information and communication technologies. Map Project

considers having an address a civil right and will never charge individuals for registering and

using an address. Businesses and organizations dependent on accurate addressing will pay per

address lookups.

As this thesis is being written, in spring 2018, Map Project is making the first tests of the

application and system with potential customers and other stakeholders in Uganda and Rwanda.

With this system, Map Project wants to facilitate government and businesses to increase their

ability to reach all citizens and consumers to unlock further opportunities for socio-economic

development. Map Project believes that at least six (6) of the United Nation’s sustainable

development goals; 8, 9, 10, 11, 16, and 17 are difficult to achieve without improved address

infrastructure (see picture on page 14).

Map Project has support from the ‘Swedish Innovation Agency Vinnova,’ and is part of the

Pre-Incubator at KTH -The Royal Institute of Technology in Stockholm. Map Projects

emphasize transparency, collaboration, the highest standard of integrity by design and default

as required by the new EU General Data Protection Regulation (GDPR). Collaboration with

local actors and frequent feedback through an agile and iterative process lays the ground for the

development of an address system that provides value to individuals, business, and government

alike. In 2017, Map Project won or was nominated in several business-related

competitions/scholarships for their work.

3.2. Map Project’s solutions, technology, and details

Map Project is developing a system that makes it possible for individuals to register a precise,

complete, and easy to use address. The system is a global platform that allows crowdsourcing

of address data which avoids getting caught in the red tape of conventional addressing projects.

Map Project emphasizes user integrity and it is up to each user to decide to whom they want to

share their address with and for how long.

Through the app, a user can create an address as they stand in the front door of their door. Their

address will be automatically retrieved through reverse lookup to the map service on the phone

(based on the GPS coordinates), the user can choose to complement the address information by

adding pictures, landmarks, and other descriptions. Once done, the user chooses an easy to

remember username to create their account. The address can then be shared through the

application and social media. The user is in control of who can see their address and until they

have given their permission a lookup cannot be completed. Business customers can reach new

customers who are now able to present a verified address. Map Project believe having an

address is a civil right, and we will never charge for that, says Ms. Beronius (2018).

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Map Project makes it easy for individuals to understand, use, and have an adequate address.

Their app works for Android (iOS soon) and feature phones using a USSD interface to the

address system. USSD stand for Unstructured Supplementary Service Data, it can also be

referred to as "Quick Codes" or "Feature codes." It is a communication protocol which can be

used through mobile phones to reach their mobile network providers. This technology gives

customers access to e.g. Mobile-money, prepaid call-back, WAP browsing, etc. (Hanouch,

2015). Many people in East Africa have a feature phone and it is often their only mean to carry

out certain very important tasks such as; manage their mobile money account, pay bills or taxes,

and top up their airtime and data traffic balance. Map Project will set up a USSD interface to

their address system to ensure they reach the entire population, in particular, the base of the

pyramid. Finally, Map Project handles sensitive personal data, prioritize individual privacy and

data security, and is in the forefront when it comes to Privacy by Design and Default in

accordance with the EU GDPR4. Map Project give the individual full control over their personal

data, who can see it and for how long. (Beronius, 2018).

Map Project also provides a bridge between the old and the new, those who have a national

address and those who do not yet have one by creating a platform to enable easy communication

around location, regardless of what national address components are available. At the same

time as national standard addresses are generated automatically through the phone and the map

service, individuals can alter that information, or decide to add the name the street has been

given in the vernacular or according to the new system. Thus, bridging the gap between the

traditional and the modern system and those who have and do not have a physical address.

Besides bridging the gaps, the application can help sensitize the population about the new

address systems and allow for them to co-exist in an organized fashion. (Beronius, 2018).

4 Map Project’s application follows the European Union´s (EU) regulation on data protection and privacy for all

individuals within the European Unions; the General Data Protection Regulation (GDPR). The GDPR not only

applies to organisations located within the EU but also organizations outside of the EU if they offer goods or

services to, or monitor the behaviour of, EU data subjects. It applies to all companies processing and holding the

personal data of data subjects residing in the EU, regardless of the company’s location. (EU GDPR Portal, 2018)

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4. Present initiatives which affect Uganda 4.1. Smartafrica.org

Africa is emerging into the westernized markets and thereby shrinking the distances between

them and the rest of the world. This emergence is creating similarities in ways of doing business,

cultural aspects, social structure, infrastructure, the legal system, etc. Additionally, because

many countries in Africa were colonized by Europeans, the language barrier is smaller between

the western world and Africa, versus Asia and Africa (Mufwene and Vigouroux, 2008). The

alliance “Smart Africa” (SmartAfrica, 2018) aims to transform societies into environments

suited for economic growth, innovations, connections, knowledge-sharing, job creation,

entrepreneurship, and stability through a project named “The Smart Cities”. According to H.E.

Paule Kagame, President of Rwanda and the Chairman of the organization's board, the

organization has 5 principles (SmartAfrica, 2018):

“To put ICT (Information and Communication Technology) at the center of our

national socio-economic development agenda; To improve access to ICT

especially Broadband; To improve accountability, efficiency, and openness

through ICT; To put the Private Sector First; To leverage ICT to promote

sustainable development.”

Countries such as Kenya, Angola, Burkina Faso, Rwanda, and Uganda are involved in the

development. The capital of Rwanda, Kigali, has installed many technological solutions to

improve the opportunities and efficiency for the human capital; Wifi in public areas, cashless

payments solutions, and public transportation. Even if the focus is on the private sector, the

initiative is to create collaboration and partnership between academia, governments, and the

public sector. The ICT ecosystem needs all players to be involved and form the future in their

environments, even if they see the private sector as the main player to use the ICT to increase

access to markets and information for business, says DR Hamadoun Toure, Founding Executive

Director of Smart Africa Alliance (Smartafrica.org, 2017).

The Smart Africa Alliance has gotten a lot of attention through their opportunity, creativity,

strategic work, commitment, and leadership across the world. During the “World Cities Day”

2017 in China, many city managers, government officials, citizens, and researchers saw Smart

Cities as the key tools toward achieving successful urban development (Bizimungu, 2017). This

results in better and improved public service systems, infrastructure, quality of living, and usage

of natural resources. When implementing technologies and efficient tools into the society, the

people involved will have better control and information about their daily platform, which can

establish different economic flows and activity (Bizimungu, 2017).

To conclude, smooth, fast, and easy navigation systems must be included in the smart cities

structure to create efficient infrastructure, which saves time and money; forming a steady base

to build on. Even so, for a whole country to experience economic growth, and not make the gap

between wealthy and less-wealthy grow, it is important to involve the rural areas in the

development. Giving similar accessibilities and opportunities in poorer areas stimulates their

improvement. Therefore, implementing address systems, improved infrastructure, and social

services in rural areas can lead to more economic involvement, efficiency, and productivity;

making the whole population reach a higher standard of living, and thereby increasing the GDP.

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4.2. What3words.com

Physical addresses for everyone everywhere can improve many daily activities across the

world, and it is not only Map Project which has seen the potential. “What3words” is a company

which is trying to form their own structure of guidance regarding locations, which are closely

connected to longitude and latitude. Their system is easy to use and understand but lacking in

logical structure and can be difficult to use when explaining a route. The organization has made

a grid, dividing the earth into 57 trillion 3Meters x 3Meters squares, where each square has a

name formed by 3 words. The service is technology based and can be used through the free

mobile app or online map and can thereby be implemented on other platforms and websites.

When using devices with a microphone, voice-activated search is possible; say the 3 words and

the location will pop up. The program can be used offline when the connection is bad or non-

accessible (what3words, 2018). Mongolia was one of the first countries to apply the system,

and others like UN disaster responders, Brazilian home renters, and UK couriers use it (Atlas

Obscura, 2016). The technology increases precision and is a useful tool for delivery services.

However, because of the 3m x 3m structure, one building can have many addresses.

According to the pictures, Stockholm´s castle got words like carpet, trips, vent, streams, tie,

door carpet, cuddle, must, and aperture. The technology and function can help a country develop

in many areas, but the structure has some disadvantages. Having a clearer connection between

neighboring locations/streets/houses makes it easier to navigate when using this kind of

application.

4.3. UN – Sustainable development goals

Sustainable development is key for progress in the long run. In September 2015, the United

Nations (UN) published 17 goals regarding ending poverty, protecting the planet, and ensuring

prosperity for all. They are supposed to be achieved over the next 15 years, to 2030, and are

directed towards the public sector, private sector, governments, civil society, and individuals

(UN.org, 2018).

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As already mentioned, Map Project believes that it will be difficult to reach at least six (6) of

the SDGs without a well-functioning and encompassing address infrastructure. Goals number

8, 9, 10, 11, 16, and 17 are directly or indirectly affected by a well-functional physical address

system. In other words, an implementation of an address system in Uganda can affect more than

just commerce and be beneficial for other countries too. When international commerce and

communication works, the world can collaborate in a way which leads to economic growth and

activities in developing countries. Collaboration creates value added along the supply chain and

specialization can take form on each step. Reaching success through international trade requires

transparency and predictability in the market. Addresses and geodata can help produce better

data and information on which to base decisions. In that way, partnerships can in a responsible

and peaceful way innovate solutions that benefit all the players along the chain. The UN´s goals

can affect important market players´ attitude and support for an address implementation an put

pressure on people with power within Uganda.

The UN strives for improvements in many parts of society, which requires a stable ground to

work on. Infrastructure, governmental power, and business environment must co-join in a

peaceful way to trigger socio-economic improvements. Firms want to be profitable, and

Uganda’s commerce will grow as the populations can buy goods from abroad, which will arrive

at their location in a more efficient and less costly way through well-established address system.

Having access to international products increases the product choices and thereby increases

customers utility (Krugman 1979).

4.4. E-commerce shops

As of today, one of the biggest online shopping organizations, Amazon, does have a small

operation in Africa. The small size can partly be explained by the low-income population which

does not always have knowledge or access to the devices needed to use the service. However,

another reason is the high delivery costs and the time/effort it takes for people to get the products

to a mailing center, pick-up stations, or store close to them, which they themselves must go and

pick up at some point (Jumia Uganda, 2018). According to Statista (2018), the number of digital

buyers from Amazon has increased since their launch. Saving time and money are two

important aspects of growth and thereby also important for Uganda. As mentioned earlier, the

mobile technology available in Uganda can access the offers from abroad, deal with payment,

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and arrange for shipping to the country. However, if saving time and money are some key

aspects of economic growth, the products must be delivered in the most efficient way to the

buyer. Again, physical addresses and navigation systems must be implemented for higher

efficiency levels to be reached.

4.5. African Union

With many obstacles and things to change, the African Union has long run goals regarding

peace, integration, and prosperity for the continent (Au.int, 2017). Most of today’s trading in

Africa occurs very locally or might reach neighboring areas. Transportation is costly and time-

consuming and therefore not profitable for the main agricultural products produced by the low-

income farmers. To change this, the African Union is planning to increase trade across regions

through Special Economic Zones (SEZ). Consequently, the transformation will create shared

growth and create business opportunities. According to Mr. Hussein, Head of Industry Division,

this can help the industrial development in the area and improve the labor market. The agenda

is set for 2063 and is aiming to create international standards regarding business environment

and investment climate. Yet to be mentioned is how governments are directing policies in a

way which should benefit the agenda. Other things they want to consider during the

transformation are implementing Low-carbon Towns, Green Business Zones, Ecocity, Smart

city and Eco-Industrial Parks. As the African Union (2017) emphasizes, their objectives are to

stimulate the labor force, increase the markets, and improve the economic flow. An address

system improves the infrastructure and delivery options, which helps the union reach their

goals.

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5. Theoretical Framework 5.1. Markets and the participants

Business climates, market structure, and workers are formed and influenced by the activities

surrounding them. Improvements, developments, innovations, and successes lead to the growth

of the industries, and thereby societies. High market competition also creates tension between

firms which leads to an increased focus on research and development, which consequently

improves products (Recklies, 2015). Making it possible for Ugandans to enter business markets,

fewer barriers/restrictions and more available information will boost entrepreneurship and

innovations, resulting in an increase of ‘degree of freedom’ in the economy (Beugelsdijk et al.,

2013). The presence of physical addresses contributes to a good climate for firms where

potential customers, partners, or associates can find them and perform transactions. It will also

work as a destination for deliveries; receiving invoices, information, and orders.

The Gravity model of trade is based on Jan Tinbergen’s idea from 1962, where countries size

(often measured in GDP) and distance (in km) from each other formed the trade flow. Distance

can be described in terms of differences in language, culture, religion, legal system, meter

range, etc. (Beugelsdijk et al., 2013). Consequently, trading centers around the world are

common, and often a big trading partner is a neighboring country; USA and Canada,

Afghanistan and Pakistan, or China and Japan (Wits.WorldBank.org, 2018). However, the

technological development and change in types of products exchanged in the markets have

decreased the importance of being close in distance, transactions and trade can occur without

physical interactions. Still, an implementation of an address system affects a country´s

infrastructure and business environment, which is involved in the Gravity model´s second

component; GDP. With similar and supportive economic structure, together with supportive

government policies and trade regulations, it improves trade facilitation for two parties OECD

(2005). When a country increases their number of trading partners, they can reach more kinds

of products and bargain for better prices. Countries buy locally scarce products from trading

partners and can through comparative advantage increase their product line in the local market,

which increases their commerce (McDonald, 2017).

Another thing which interacts with the formation of the Gravity model is when unions are

formed or other bonds push to countries together. Previous colonies do still have good contacts

with former colonizers (share same law-system, cultural ideas, etc.), or tariffs change the rules

of the game. The European Union, Mercosur (in South America) and NAFTA makes trade

among members easier, and thereby more common (the United States International Trade

Commission, 2016) (Amadeo, 2018) (Kepaptsoglou, Karlaftis, and Tsamboulas, 2010). Unions

and agreements have helped many developing countries to create collaboration, improve

communication, enter new markets, and increase their commerce.

Price elasticity of demand is crucial for trade and business profitability. It measures the

percentage change in the price of a product, to the percentage change in demand for that same

product; creating the slope of the demand curve. Because the market price is based on the cost

of making the product, it is important for suppliers to push down costs, and thereby prices, to

increase the demand (Economicsconcepts.com, 2018). During commerce, products are

transported and delivered to different destinations. Being able to cut down delays and

confusions through the introduction of an address system will thereby make the distribution

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less costly, and therefore decrease the overall cost of the product; from raw material to reaching

the customer.

5.2. Institutions and transaction condition

Governmental policies and market barriers can affect the quantity and price in a market. Some

of them simulate market players, while others do the opposite. Bolaky and Freund (2004) made

a study showing how trade leads to a higher standard of living in flexible economies, but not in

rigid economies, pointing out the importance of the right regulations, business environments,

and accessible infrastructure services. Facilitating firm entry was the most important factor to

stimulate business activity in markets. The importance of having the right circumstances and

accessibilities cannot be stressed enough. The government and public institutions must

construct a business environment suitable for both new and old actors. Which emphasizes

optimal performance and making it beneficial to be a part of the formal economy structure. As

OECD (n.d.) highlights, governments must make policies directed toward market entry,

innovation, and technology diffusion which improves productivity, growth, and job creation.

Different financial assets are necessary for market players to start and run businesses. With that

said, if physical addresses are implemented people can say where they live and what they own;

proof of existence and identity. If an address is registered on an individual, that person can let

their house bear the risk during loans and investments. Stimulating employment, business

activity, and market flows will boost the economic growth in the society, which will create

more jobs and market opportunities (WTO, 2004).

According to North (1991), institutions shape political, economic, and social interactions

through informal constraints and formal laws to create order and reduce uncertainty in a

country. Consequently, together with the business structure and possibilities, institutions

determine transaction and production costs, which affects profitability and feasibility among

the market players. North also highlight the role of path dependency in a society; past activities

lead to today´s actions which together form the future. Economic history and development have

been formed out of institutions’ influential power on the economic environment. Still to

mention is how different parts of the world have evolved through different strategies and

thereby formed different ways of performing transactions. In Africa, historically, the

incomplete standards, lack of price quotations, lack of production reports, no customer

guidance, etc. made each transaction into a single activity, where price, quantity, and quality

differ from time to time (North, 1991). Societies and markets are dynamic which mean that the

situation is always changing even if it takes time for regulation and laws to keep up. Even so,

according to North (1991), African governments got marginal control over the marketplaces

because of the lack of legal structure and court system; contracts become unenforceable.

Instead, the bargaining party with best knowledge and info about the exchange cost in that

asymmetric market will make the best deal. With that North comment on how transaction risks

and arbitrage are more common without standardized cost and quality of products. Generally,

institutions and organizations are safeguards to property rights as they apply rules to the game

of trading. As mentioned Uganda lack that and thereby property rights which usually bring

control and secure investments.

Historically, the emerge of specialization, improved production technology, and increased labor

force change some important building blocks of the early European markets and created the

shift in urbanization and use of industrial factories. In comparison, most Ugandans are involved

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in agricultural activities and have not experienced the activities which revolutionized Europe

regarding trade. Historically North (1991) concludes how modern western societies have

reached higher success because of specialization, economy of scale, and engagement in

international markets. Namely, reliance on vast networks of interconnection increases available

products in the countries, which increases the number of markets and complementary product

market. Consequently, the transaction sector increases and becomes a large percentage of a

countries´ GNP (gross national product) (North, 1991). Trade agreements and contract

negotiation matters because it takes resources to define and enforce exchange agreements,

which sets the transaction costs, which are a critical dominant of economic performance. Often,

the institutions affect agreement and contract negotiations, which means that they affect

transaction costs. Other things which helped revolutionize the European economy, according

to North (1991) were specialization in trade, finance, banking, insurance, mobility of products,

as well as the simple coordination of economic activity. Through these developments, the labor

force increased. “In every system of exchange, economic actors have an incentive to invest their

time, resources, and energy in knowledge and skills that will improve their material status,”

(North, 1991).

Coase (1998) also investigated how institutions effect transaction costs and economic

situations. He points out how law, and not only pricing system, influence which goods and

services are included in the market. Additionally, productivity of an economic system impacts

the flow of goods and services which influence the welfare of a human society. Coase agree

with other researchers, such as Adam Smith, that specialization affect productivity, but Coase

(1998) highlights how that only is possible through exchange, which is highly dependent on

costs involved. Transaction costs are one part of the costs of exchange which, according to

Coase (1998), are set and formed by institutions of a country, such as the legal-, educational-,

political-, and social-system. Consequently, the institutions of a country govern the

performance of their economy. The size of transaction costs can be the factor which determine

if a company will be profitable or not by buying product. Furthermore, technological changes

got a major influence on costs involved in a transaction, and property rights regulations impact

peoples actions (Coase, 1998).

According to Williamson (1979), transaction cost has five main determinates;

frequency, specificity, uncertainty, limited rationality, and opportunistic behavior, which affect

an organization´s operational method and structure. It is affected by the cooperation and

relationship present during an exchange, as well as being affected by the market players and

institutions/organizations which forms the market environment. The size of a transaction cost

is shaped by internal and external factors in the environment where the action is taking place.

Williamson (1979 and 1981) analyzed the circumstances, behaviors, and activities affecting the

transaction cost. He combines economical, organizational, and contract law theories to point

out how both the public and private sector affect the possible emotional interaction between

two bargaining parties. The governmental structure of a country is ideal when it meets social

needs and achieves social goals. It affects the prospects for firms in the market, and success is

shaped by comparative advantage. Williamson highlights how natural selection forces are

involved and affects the level of success throughout a transaction. With that said, the trading

partners relation, business environment, market structure, and governmental policies will form

the outcome.

To relate this to the need of an address system, people and firms seek profit and thereby want

to keep costs down. An address system provides clarity, improves infrastructure, and makes it

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easier to keep contact and collaboration as the parties know where to physically find each other

and how to use a delivery/transportation system in need. Through collaboration, efficient

operation, smooth transaction, and fast decisions, costs can be cut as transactions take place.

5.3. Time and delivery

Efficiency and optimization of time and money, and a firm’s production function can save

money and thereby increase the profit margin. Opportunity cost can lead to sunk costs and be a

burden for a company (Buchanan, 1999). When concentrating on the effects from well-

functioning and organized physical addresses, both the driver and receiver can benefit; the

driver can deliver the package with precision and the receiver can get it right away and not go

through pick-up stations. Well-functioning infrastructure sets the backbone to a well-working

society and increases the possibilities to participate in global supply chains. Uganda’s urban

population is growing and therefore the need of applying the right legislative, judicial,

institutional, financial, fiduciary, and technical frameworks for the emerging business

environment is also growing.

Transportation spending in Sub-Saharan Africa is growing faster than anywhere else in the

world; estimated to increase 11 % per year between 2015 and 2025. But with a lack of

experience and inefficient planning processes, this creates challenges for Uganda (Oxford

economics, 2015). Inadequate transport and logistic performance lead to delays and

bottleneck/queue, which can be costly; an extra day can reduce exports by at least 1 % and can

also impede export diversification via direct and indirect consequences (OECD and WTO,

2013). In contrast, if they are well-organized and functional, the appropriate circumstances are

established which results in higher incomes, job creation, and lower poverty rates. Opening

former isolated area for trade will help people get involved in economic activities, lead to more

trade transactions, better accesses, and connectivity which boost nations’ economies (New

Zealand government, 2014).

Just-in-time delivery is appreciated in the way that it gets rid of queue and occupied storage.

Move Africa is a transport and logistics initiative with an aim to improve freight handling,

transportation, checkpoints, storage, distribution systems, and related services across Africa

(Move Africa, 2016). They point out how export and import costs increase with limitations to

access costumers or when delivery is delayed. Even if the most time can be saved through better

checkpoint collaboration between countries and packaging strategies, every second count and

physical addresses can contribute to improvements.

5.4. Inputs and reach out

Businesses want to make a profit and will try to decrease the production cost to be able to enjoy

a profit margin. This takes us back to the H-O model (Heckscher Ohlin model) which claims

that comparative advantage arises when abundant and cheap production factors are used and

being traded for products made by, for that area considered to be, scarce factors (Suranovic,

2006). Uganda has natural resources (such as coffee, gold, and copper) (Forbes.com, 2017),

which are scarce in other parts of the world, and should theoretically lead to a comparative

advantage in some markets. Unfortunately for Uganda, their business environment, trade

policies, and lack of accessibilities block them from enjoying the potentials regarding

international commerce. In a perfect market economy, the H-O model defines how factor

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mobility will allocate inputs (capital and labor) to fit the most optimal production function

needed to be profitable and to have a good position in the global market. However, most people

in Uganda are at the bottom of the economic pyramid and do not have the necessary information

needed to know their opportunities. Additionally, because many lack identification and proof

of existence, no one else can reach out to them for formal job offers. When businesses and

individuals are linked to a physical address, they are on the map; it creates knowledge about

their existence. To be heard, seen, and known are important when firms want to grow and reach

out to market players (Marketing MO, 2018).

As already mentioned, the informal labor force is large (Anderson, Learch, and Gardner, 2016),

the business environment is not optimal, and lack of tax collection is a problem in Uganda.

However, with the new beneficial technology and access to a physical address the situation can

change. Efficiency and productivity increases as businesses start using technological solutions,

resulting in pulling both people and potential entrepreneurs into the formal business market;

when activities and transactions occur via technology they can be traced and connected to

Uganda’s taxation system.

“Technological change drives long-term economic growth, productivity and

improvement in living standards. At the same time, the emergence and diffusion

of new ideas, products and production techniques throughout the economy entails

a process of “creative destruction” … enhancing their ability to grow and create

wealth and jobs.” (OECD, n.d.) (page 3)

In other words, as technological penetration takes place and knowledge about the benefits

associated with technology usage increases, the formal economic activities in Uganda get a

boost. Resulting in more trade flows, economic stimulation, and more tax revenue used to

upgrade the public services sector.

5.5. Summary of the Theoretical framework

The importance of having supportive regulations and business environments are essential to

stimulate market entrance, job creation, innovations, and economic growth. Uganda is facing

barriers which result in an informal socio-economic system, delays, high transportation costs,

and difficulties starting a business. The present situation in Uganda can come to a change as

ICT revolution and electricity penetration occur which consequently make it possible to

implement a digital address system which can improve the infrastructure, make delivery

services more efficient, increase trade via collaboration opportunities, and boost prosperity. The

government plays a big role in forming beneficial policies for commerce, supporting unions

and trade memberships, as well as boosting the GDP via educational and technological

reformations. The Gravity model emphasizes the importance of two trading partners being close

in distance and being similar in behavior, culture, language, and regulations to be able to trade

in a smooth way. Technology makes the gaps smaller, thereby boosting international trade and

increasing commerce. The implementation of an all-encompassing address system further

supports efficiency and improving just-in-time delivery, and reducing inefficiency and queue

build up. In addition, it makes up an important part of a well-functional infrastructure.

Economic activity increases as ‘degree of freedom’ in the markets increases, resulting in

improved productivity and efficiency among the market players, which will boost Uganda’s

commerce and standard of living.

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6. Possible negative outcomes when implementing a

national address system

Uganda is ranked as one of the most corrupt countries in the world (SBS, 2018). It directly

affects the costs in public and private projects and indirectly leads to citizens mistrust of their

government, increased social inequality, and damaged the public institution. Additionally, these

corrupted governments require more trade control, which results in a complex financial

structure, distorted competition, market regulations, delays, and increased criminal activity

(OECD, 2015).

A national address system affects navigation and delivery, which makes it easier to find and

access areas which have not previously been known to non-locals. With that said, some people

see an opportunity to find areas in Uganda which are rich in natural resources, with the motive

to acquire the areas and build a profitable business out of it. Sometimes this can occur mainly

because locals lack proof of land ownership and entitlement to their property. The risk of losing

land which is rich in natural resources can be devastating for a farmer who makes a living out

of the crops. According to data gathered regarding land ownership, many areas in Uganda are

not “owned” by anyone even if it is being used. Therefore, some firms and government

institutions see an opportunity to make the most of this vacuum in registration and acquire the

resource-rich land that nobody can provide an official title to. Organizations and institutions

have more financial resources, powerful connections, and educated personnel. They can use

their advantage over the locals to confiscate the land and perform land grabbing5 (The East

African, 2015). The millions of smallholder farmers in Uganda, therefore, run the risk of losing

the only source of income they have access to.

To add on this, if suppliers from different areas and markets emerge into one bigger entity, the

competition level will increase and a more ‘perfect competition’ structure will be formed.

Consequently, profits will approach Zero, a lot of exits and enters will occur, and big investors

can use their technological advantage to create ‘economy of scale’; pushing down the market

price. Resulting in crash and exit for small, local producers. Having an open economy means

both entering global markets and letting the global market enter local markets.

(Economicsonline, n.d.)

Digitalization and automatization have helped nations’ economies to become more efficient

and grow. However, it also results in the loss of many low skilled positions. Some researchers

say that in the next 15 years, many hundreds of Millions of jobs can be lost worldwide due to

digitalization and automatization (Vincent, 2017). This transformation brings about less low-

educated jobs but more high-educated jobs. Consequently, people in countries such as Uganda,

where the average education level is low; people have low-income; public service is scarce; and

they have a lacking education system, will suffer. Resulting in the low-educated people losing

jobs and becoming even poorer, while rich people who have access to education get more job

opportunities; income inequality increases.

5 land acquisition; the seizing of land by a nation, state, or organization in an illegally, underhandedly, or

unfairly way.

22

7. Recent cases where new physical addresses have been

implemented 7.1. Ghana

In October 2017, Ghana launched a national digital address system with help from Vokacom;

a Ghanaian information technology firm. The new system, called Ghana Post GPS, uses the

latest geocoding technology and is aimed to broaden the tax base, improve delivery services,

boost business activities, and widen financial inclusion (citifmonline.com, 2018). “Efficiency

regarding delivery, emergency situations, criminal investigations, and economic development

will be a fact when directions no longer must rely on landmarks” (Ghanapostgps.com, 2018).

During President Akufi-Addo’s speech about the National Digital and Property Addressing

system, he mentioned how the lack of a functional address system has been a barrier for job

creation, and how a new era is approaching for the country; “once your address can be located,

the risk premium charged by banks will be lower. Businesses can now produce at lower costs

and will have enough funds for reinvestments” (Ghana.gov.gh, 2017). In summary, the new

Ghana Post GPS will lead to 5 major benefits (BuzzGhana.com, 2017):

1. Improve location/property navigation for everyone via comprehensively mapping the

entire country

2. Faster emergency response

3. Advanced crime control; benefit law enforcement

4. Improve revenue collection and creation of new businesses; Water/electricity/local

government organizations benefit, leading to new job opportunities

5. It will facilitate the functioning of the ‘Ghana Card;’ a national ID card (proof of

identity) launched by president Akufo-Addo which only can be given to people who are

registered at a home-address (BuzzGhana.com, 2017).

7.2. South Korea

International businesses and people in South Korea have long struggled with the local alphabet

and cultural aspects during trade. Their address system which was introduced during the 1900’s

lacked logic and was based on “land parcels in reference to the locational hierarchical

government units;” a land-lot based system (Law, 2016). Even if it took the country about 20

years from plan to implementation, a new address system was established in 2015, which is

based on a practical and systematic road name and number system; the street names come from

historical events nearby, odd numbers on one side and even on the other. Finally, each address

is composed of the building number, street name, district, city or province, and postal code,

leading up to a 5-digit postal code (Jae-un, 2013). During the 20-years implementation period

road posts, doorplates, real estate registers, resident registrations, building registers, signs, etc.

were changed and are now comparable to many address systems used in the western world. In

conclusion, the new system has brought clarity and precision regarding locations. Increased

governance and business-related opportunities attract both national and international activities

(Jae-un, 2013). South Korea has experienced improved business environment and commerce

as an effect of introducing a “westernized” address system.

23

7.3. Kenya

OkHi is an organization with the same aim as Map project; make people more engaged in

society by providing them with physical addresses (OkHi, 2018). With current activities in

Nairobi, Kenya, the CEO of OkHi, Timbo Drayson, points out how people without addresses

don’t have access to the same level of services and cannot access loan opportunities; “with

addresses, life can get better… [it] is a human right” (Nelson, 2016). Just like many others have

mentioned before, addresses work as a base and are the core to economic and social growth.

Additionally, it is a vital part of a human’s identity and improving time and cost efficiency for

businesses. The application can easily provide directions, create offers, order food, track your

rider, and request an Uber (OkHi, 2018).

Other organizations that are working within the same field are Coders4Africa (Anwani-app),

Mocality, Dar Ramani Huria (means “Dar Open Map” in Swahili), Plus codes (Okwii, 2017),

SnooCode (Douglas, 2015) and Grupo Cartero Amigo (in Brazil).

Because the implemented technologies and systems occurred very recently, the impacts on

economic stimulation are difficult to assess; hard to measure in numbers. Additionally, there

are both direct and indirect impacts that form the new societies and their opportunities.

Consequently, no statistical or number-based report can describe the impact of the recent

introduction of address systems across the globe at this point.

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8. Previous literature

“Moore's law describes the phenomenon that the number of transistors that can fit on a chip

will double every two years, which has generally meant that the chip's performance will, too”

(Waldrop, 2016). This high-speed development gave rise to smartphones, high-speed Internet,

computers, etc. resulting in the mobile technology receiving new functionalities which increases

its value and influence. Through that improvement, many societies have experienced GDP

growth, effectivization, improved productivity, and new opportunities. Entrepreneurship,

innovation, and international collaborations are now possible with better communication,

fewer costs, and more efficient activities. Because of the radical change and impact that

technology has had in Africa, there are many studies and articles regarding the subject.

8.1. Opportunities and obstacles

Eder and Mutsaerts (2013) conducted a survey in rural Uganda with a focus on mobile

banking. Lack of electricity, required taxes, lack of access to finance, and corruption were the

main reasons mentioned regarding factors which prevent entrepreneurship and emergence of

new businesses. They also point out how Ugandans are familiar with mobile banking and how

the rate of adaption is high. Mainly because willingness to learn is high, people seek access to

financial services and information regarding the new technology (often agents from mobile

operators) is being spread across the country. As they put it, “payment system, tariffs, and

investment costs must satisfy specific requirements to be effective, efficient, and positively

affect the rate of adoption” (Eder and Mutsaerts, 2013). Schumpeter (1942) supports the

importance of innovations, and how it introduces new products, new markets, and new

opportunities in the society; innovations bring positive changes and values. According to Fallah

and Luo (2014), new features, other than calling and texting, have increased the usefulness and

value of the mobile phone. Mobile banking has given the opportunity of financial accessibilities

to the unbanked in Uganda. Even so, according to their study, registered mobile customers are

very inactive and do not take the advantage over what the technology can bring them. Fallah

and Luo (2014) concluded that the main reason for the low activity level among registered

users, and what must be changed for the country to experience the advantages, are that “users

do not feel the need,” “do not understand the service,” and “they are hindered due to tangible

and intangible factors.”

8.2. Results from mobile technology

GSMA (2016) collects information and analysis data regarding mobile operators worldwide,

and they emphasize the increase of GDP and new jobs created by the fast-growing mobile

market. According to their 2015 report, mobile technologies and services generated 6.7 % of

GDP in Africa (corresponding to around $150 billion in economic value) via increased numbers

of jobs, productivity, and other related services. They also mention the opportunities of

innovations and start-ups. The main barriers to penetration are costs, coverage, and technical

literacy. Even so, between 2010 and 2015, the numbers of mobile internet subscribers in Africa

tripled to 300 million. According to GSMA 2015 report, African spends the highest proportion

of their income on mobile ownership in the world, all villages in Africa do not have access to

essential networks, and lack of technical knowledge among the people is high. The mobile

technology allows access to communication (social networks), real-time transactions,

information regarding weather and markets, internet, finances (mobile banking), and makes it

25

possible to reach help (emergency vehicles; doctors, police, firefighters, etc.). Another

important fact that the GSMA report (2015) points out is that mobile technology can improve

the opportunities for unregistered individuals; lack of ID/birth registrations are a problem in

Uganda as well as for other African countries today. According to their report, more than 400

million people in Africa lack an official form of identification (GSMA, 2015). Without ID, the

individual does “not exist” and has, for example, no right to the education system, government-

funded vaccination programmes, insurance, or ability to open a savings account in the bank.

According to GSMA (2016), mobiles can improve the quality of life for users, saving money

and time, improve access to health and education, and increase employment opportunities. Even

so, a collaboration between government, mobile operators, stakeholders, users, and aid givers

can together create economies of scale. Which results in lower costs and access to a broader

area, resulting in more potential customers. In the same report, “Digital inclusion;” expansion

of global connectivity and mobile internet adaption, also receives a lot of attention. Specifically,

when supporting the private sector, the whole area benefits. Mobile technology uses formal

business registrations and activities which are linked to the taxation system. Consequently,

GSMA stresses the importance of why governments should develop and enhance a mobile-

technology-friendly environment. To conclude, the GSMA reports stress the importance of

mobile technology. It boosts GDP through job creations and it funds the public sector through

increased taxation. Still, they forget to mention the importance of a well-functioning

infrastructure which gives rise to opportunities for civilians and increases business efficiency.

A physical address system puts potential market players on the map; making it possible for

suppliers and demanders to find each other, or potential co-operators.

8.3. Mobile account

Donner and Tellez (2008) highlight ‘Information and Communication Technologies and

Development’ (ICTD) and mobile banking. It makes it possible for the users to check their bank

accounts, store value in an account linked to their handsets, transfer funds, and access credit or

insurance products. Today, there are more mobile accounts than bank accounts in Uganda

(Hedlund, 2016), which together with internet access, point-of-sale networks, ATMs, and

voicemail make it possible for a cash-free society to emerge. A cash-free society brings many

benefits, such as reduced crimes, improved time-efficiency, and more practical budget

overview for both public and private actors (Dave, 2016). Through mobile payment solutions

and bank-cards, no cash must be handled which otherwise can get stolen, dropped, or damaged.

When technological devices and cards are used, it becomes easier to track and connect activity

to the tax collection system; sales tax and value-added tax are paid. Additionally, the handling

of cash; printing bills and coins, storing cash, or moving cash is not necessary for a cashless

society. Regarding time-efficiency, during international payments, the mobile device can

handle everything instead of letting the user figure out how to exchange for another currency.

The transaction occurs directly and there is no need to travel to the receiver to perform the

transaction. This can be described as mobile technology not having any distance restrictions.

Lastly, people who handle money through technological solutions, instead of cash, can both

keep track and do budgeting anywhere at any time through mobile- or online-banking

(Pritchard, 2018). For Uganda, this would result in more formal economic activities, higher tax

revenue, contribution to public services, and more convenient business culture with increased

efficiency and productivity. A balance and improvement of transparency, predictability, and

inclusiveness would favor Uganda’s economic situation.

26

However, what still must be mentioned, is the negative consequences of a cash-free society.

Losing the phone or card could be a tragedy, but most often the account is protected by a code

(or similar key) in a technological solution. Identity theft is still a risk, and to be able to use the

service and enjoy the benefits the user must be literate. Having a certain technological skill to

be able to handle the services in a safe way is also crucial.

As mentioned before, technological services have no distance restrictions and can, therefore,

cross landscapes and country borders. Even so, all counties do not have the same regulations

and policies regarding technology usage and accessibilities; different regulatory factors must

be considered depending on location (Porteous, 2006). For example, some applications can be

banned while some banks prevent remittances associated with risk, such as when money

laundering or very unsafe/fluctuating currency can be involved. Today developing countries

receive more money via remittance than aid (Edwards, 2016). Mobile banking and transaction

increases in Uganda, and many Ugandans save time and money by performing remittance,

transactions, and transfers electronically. Physical presence is no longer required, and with

activities taking place in real time the benefits are experienced instantaneously. International

activities increase with the open-mindedness of mobile-based business activities, and it all

results in less costly and more flexible business environment, which supports economic growth,

market entrance, and investments. Mobile banking and payment solutions also bring safety and

reliability by always being easy to access, being available at any time, and making it possible

to have an overview of one’s assets if you have the right safety codes/keys to enter the services.

In other words, an individual must have the right username and password to enter the online

applications to be able to use the services and money. Productivity and efficiency can be

improved via fast services and easy access when needed, which improves the daily lives of

individuals using the technology.

To reach the potential associated with mobile technology, Donner and Tellez (2008) point out

how policymakers must facilitate a favourable environment where people can easily register

and access the mobile system, affordable products can be provided to those with less purchasing

power, and where new information and technology can be easily understood by the population.

At a broader level, it could bring more money into the formal banking system, improve taxation,

and encourage reinvestment of money that is currently not in an effective circulation (infoDEV,

2006). Currently, a large part of the transactions and remittance to developing countries occur

via unregistered channels, but as technology improves so does the control of economic flow in

and out of countries; making sure the formal way is used and taxes are paid (Edwards, 2016).

However, it does not change the fact that a physical address is needed to receive products or

mails. Firms and individuals must be reachable for collaborators, customers, and suppliers.

Having an address means being on the map, which means that you exist in the eyes of others.

Getting the whole population involved in the socio-economic activities results in a better

average standard of living in the country.

Blauw and Franses (2011) looked at the “progress out of poverty index” and analyzed the

changes as the use of mobile phones increased in Uganda. According to their findings, the

mobile technology leads to market efficiency via improvements regarding collecting market

information, reduce traveling costs, saving time, and communicating with co-workers, buyers,

sellers, and other players in the market. New applications emerge in the world of mobile

technology where requests for weather conditions, sports, news, agriculture, and health makes

daily life easier for many individuals. Mobile banking provides storing, transferring, and

withdrawing of money in real time. As individuals’ income increases, they seek new products

27

to improve their standard of living. Subsequently, demand for products increases and thereby

also commerce. Physical addresses are needed for households to get just-in-time deliveries.

Moreover, because of the rising incomes, the opportunity cost of using their time to pick up a

delivery, taking time from working, will increase. The Economist (2009) states how “incomes

of Kenyan households using M-Pesa have increased by 5-30 % since they started mobile

banking.” In Uganda, the main player is MTN which was introduced in March 2009 and had

millions of mobile banking subscribers after only a year. With that said, Uganda can experience

the same results as seen in Kenya.

Before mobile technology, “middlemen6” controlled e.g. the farmers who did not have any

knowledge about the market, and arbitrage occurred daily (Anderson, Learch, and Gardner,

2016). Because about 70 % of the labour force work within agriculture and are considered part

of the bottom of the economic pyramid (Ne.se, 2017), most of them haven’t had the accessories

needed to leave their farm, and thereby must go through a middleman who has high purchasing

power and can set the price in a monopolistic way. However, with the developing technology,

the situation is changing. The paper written by Maree et al. (2013) investigates the development

of the M-Pesa platform in Kenya, as well at MTN’s mobile money in Uganda. The result reveals

communication, social, and economic improvements in the societies, but also a negative side-

effect in form of job loss for some categories. As the technology is penetrated many jobs and

entrepreneurial opportunities are established along the mobile phone value chain, but jobs

associated with cash-societies are lost; middlemen, agents, cash carrier, etc. To add is how the

increased efficiency and cost reduction, due to economic upgrading, for firms can result in less

need of workers.

8.4. Social class

Mobile technology helps individuals get information about firms, data, and services, but to get

a ‘full circle,’ mobile technology should also make it possible to get information regarding

specific addresses; families’, firms’, and stores’ locations. Today, many institutions and

organizations are focusing on the richer areas of the country and ignoring the vast low-income

majority (Kendall et al., 2012). This can easily be changed as mobile technology can be spread

evenly across the country and make more people included in the mobile technology growth; all

people can use the available technology and seek opportunities. Maree et al. (2013) found how

the poorest people in the society, mainly smallholder farmers, benefit from the mobile

technology via eliminating travel costs, saving of time, market access, planning (call ahead),

prearranging meetings for seed and buyer collection, avoiding unnecessary trips to trading

centres, and improving communication and information sharing. Before, the main source of

news was through family members, neighbors, and middlemen. Arbitrage or false information

was common, and farmers had to join “farming groups” to be able to pool resources, share best

practices, or participate in micro-lending (Martin and Abbott 2010). The spread of mobile

technology has led to increased knowledge-levels, higher income, better nutrition and schooling

of children, more efficient agriculture, improved GDP, and better communications.

6 Individuals who works as the intermediary between the producer and the market. Because of the lack of

knowledge and information among many producers in Uganda, the middleman usage their advantage to grab

most of the profit margin.

28

The majority of Ugandans are involved in agriculture, and it contributes to 23 % of the GDP.

This was the main reason to why Anderson, Learch, and Gardner (2016) inspected smallholder

households in Uganda, and their demand for financial, agricultural, and digital solutions. With

lack of access to credit, savings, and payment plants, Uganda has a cash-based economy.

According to their findings, for the farmers to be able to grasp the benefits mobile technology

can provide, the focus must be on how to make farmers realize their need of the new technology.

With this new technology, farmers can communicate with all players in their value chain, find

the current market prices, get valuable information resulting in cutting costs/saving time, and

they can improve their profit margin, resulting in higher incomes. An address system would put

this low-income social class on the map and create new opportunities, as well as accessibilities.

An interesting fact from Anderson, Learch, and Gardner’s (2016) survey is how Ugandan

farmers are familiar with the new technology (high awareness) and are willing to adapt, even if

other barriers prevent it. According to their survey, 87 % of the smallholder farmers had heard

about mobile money (2015) and 94 % said that they would benefit by having a mobile money

account. At the same time, only 29 % said that they have used a phone for financial activity.

Additionally, only 8 %, according to Anderson, Learch, and Gardner’s (2016) survey, of all

sales uses contracts while the rest is done outside of a formal agreement. Smallholder

households do not have savings, access to funds in the event of an emergency, no insurance, or

knowledge of how financial plans work. According to the survey, farmers think it is important

to save money for school fees, future purchases, or unexpected events. But, they also think it is

important to be able to access the money immediately. The main reason for farmers not having

a phone is the cost.

Ndiwalana, Morawczynski, and Popov (2010) made a report based on interviews made in

Uganda’s capital, Kampala. The average education level, wealth, and accessibility to different

products are higher in Kampala compared to the county average, which should be considered

through their findings. Even so, the findings revealed that the main benefit of using mobile

money for transactions is the speed. Another benefit was accessibility; they have their phone,

and thereby mobile money, with them all the time. They also mentioned that it is cheaper

compared to other ways of handling handle money, more secure when traveling with mobile

money versus cash, and granted better control over financial assets.

8.5. Global interaction

A society’s infrastructure is mostly a public good, and thereby dependent on governmental

policies. It has also been shown how trade is dependent on the quality of the infrastructure and

related services (WTO, 2004). In 2004, “World Trade” came out with a report showing how

bad infrastructure forces wholesalers to keep large stocks of their goods, leading to inefficient

transportation service and lower competitiveness, resulting in high costs and time-consuming

delivery. Additionally, they mention how freight costs in developing countries are on average

70 % higher than in developed countries, and Africa got twice the world average. Furthermore,

shipping agricultural and mining products are more expensive than manufacturing products

(WTO, 2004). Wilson, Mann, and Otsuki (2004) support the fallouts and estimate that

improving infrastructure in the service sector (affecting trade facilitation) is worth 4 % of the

worlds GDP; $154 Billion. Economic growth, by definition, is increased through productivity

and flow of money per unit of time. The aims of technological development are higher

production and better products per hour worked, which results in higher standards of living

(Economic Policy Institute, 2000). Education and technology are the most important factors in

29

production and operation growth, consequently affecting national GDP (Tinbergen, 1962).

Additionally, the spread of computerization has made it possible for many people to have access

24 hours a day through their phones. International trade growth broadens the market and

increases the number of choices available; choice theory suggests that people get more satisfied

when having many alternatives to choose from (Krugman, 1979). International trade also

increases the intermediate good markets, which give rise to value added along the supply chain.

Another important aspect is how the black markets must be replaced by legally driven, secured,

and fair transaction for a country to experience beneficial sustainable development. Having a

beneficial infrastructure, payment system, and trading policies will make it more beneficial for

most people to use the “white”/formal market and thereby help the society grow in a legal way.

8.6. Summary of previous literature

To the best of my knowledge, no study analyzing the opportunity for Uganda to grow their

commerce by establishing a digital-based national address system has been conducted. Using a

digital solution has the potential to improve productivity, effectivization, opportunities, and

GDP growth. Ugandans are adaptable and familiar with mobile solutions, but they do not

always see or feel the benefits and need of using it. The government must boost market entrance,

job creation, innovations, accessibilities, etc. for everyone through policies and programs. A

cashless society is beneficial in many ways and it is also associated with the formal economic

system which supports the taxation system, resulting in improved public services.

The value of mobile phones increase as new features are added, and improvements are

implemented. Today, people can have control over their budget, savings, and perform

transactions in real-time. More convenient and fast solutions are a fact, and there is no longer a

need of getting help from expensive middlemen. Studies show how even the people at the base

of the economic pyramid benefit from the use of mobile technology. The main drivers leading

to higher standards in an economy are the technological solutions, which increase knowledge

and productivity, resulting in higher standards of living. Ugandans usually keep a local focus

in terms of business activities, but as technology is penetrating the country, a broader view is

possible without increasing costs and time. Consequently, bigger markets with more

profitability are reachable, with more global economic perspective. Mobile technology breaks

down many barriers, but for international commerce to work, Ugandans must be able to present

a physical address to establish a better infrastructure and give access and new opportunities to

the whole Ugandan population. When a country lack addresses, they usually lack societal

planning, legal identity, equal opportunities, public service, infrastructure, and other things

needed to establish a stable and well functional socio-economical society with an encouraging

business environment (UPU, 2012).

“Individuals, governments, and businesses are all stakeholders of address

infrastructure. Investing in address infrastructure is a fundamental step in

connecting people to public and private services, and human rights. Political

willpower is the key to guaranteeing that an address infrastructure is developed

for the benefit of all.” (page 11)

According to the Universal postal union (UPU), to ensure successful digital and physical

communication between individuals, government, and organizations, addresses are needed, and

the policies must push the market players into the formal system.

30

9. The contribution of this thesis

Reports such as from the World Bank (2018), Maree et al. (2013), and GSMA (2015) all

indicate how mobile adaptation increases quickly in Africa, which supports Map Project’s idea

of using mobile technology to jumpstart development of an addressing system. It provides

individuals and organizations with a precise, complete, and easy to use address.

9.1. Form a stable base and possibilities

A national address system represents a big part of a well-functional infrastructure, which is the

backbone of a well-functioning society. Previous findings, partly found in the ‘theoretical

section,’ point out the importance of real-time actions, accesses, speed, and opportunities.

Mobile technology has helped Uganda become more efficient and productive, but the circle is

not yet complete, as the gap between those with access to new goods and services and those

who do not is yet to be closed. Just-in-time delivery to the right destination saves time and

money, directly and indirectly, and gets rid of bottlenecks. Being on the map means that you

exist in the eyes of others and that you are a potential player in the market.

Having a home address can work as proof of ownership, make it easier to get an ID, and increase

the possibility of being merited when applying for financial services. An address system makes

it easier for emergency services to reach the required destination fast and efficiently, ultimately

increasing access to better lifesaving health care to the population. It also supports public- and

private- services related to registrations, which thereby supports the formal economic system,

resulting in more efficient taxation collection systems among other things. As tax revenue

increases, public funding increases, which can support further interventions for socio-economic

development. Through a more transparent system, the government can become more inclusive

in the social development through enhancing market regulations, social structure, and business

environment. As a result, citizens and businesses enjoy increased access to essential services,

new products, and opportunities which increase their standard of living.

9.2. Contribution to sustainability and research frontier

Getting the whole population involved is crucial for the country to develop in a sustainable way,

experience GDP growth, be a part of the global markets, and increase the nation's commerce.

When individuals’ income increases they demand products related to higher standards of living,

and with increasing access to e-shopping, pressure on delivery is a fact. A well-functioning

address system helps the process of optimizing commerce, which is in the interest of both the

public and private sectors.

As mentioned, an address system makes it possible to track where people, buildings,

organizations, and natural resources are located. It makes it easier to collect data and material

needed to fulfill research and plan for projects. As the right information is gathered, the right

actions can be taken to ensure sustainable improvements. Auxiliary organizations can use their

resources and knowledge to improve the living conditions for the people living in poverty.

Technological solutions can be implemented in new areas, which increases the opportunities

and accessibilities for the locals. Providing education and information to people can help them

31

improve their working methods and daily activities, which are good financial investments

because of the improved and sustainable outcome they bring.

With new data gathered, research and development can occur, resulting in innovations.

Innovations contribute to economic growth and lead to even more innovations (European

Central Bank, 2017). Higher productivity and new and improved procedures of handling daily

activities form sustainability at the same time as standards are upgraded. A positive feedback

loop is in place which contributes to improvements in the society, citizens, and the business

environment.

Technological solutions make it easier to track activities which can contribute to formal tax

collection, just as addresses make it easier for individuals to be registered and connected to the

formal social structure. As a result, the tax revenue gathered can be used to improve the

circumstances and the public sector even further in Uganda, which brings new sustainable

solutions to the society.

This thesis is meant to discuss the need for an address system in Uganda and how it can lead to

sustainable growth as well as increased commerce.

Hypothesis: The implementation of a digital address system in Uganda will favor commerce.

32

10. Methodology

10.1. Qualitative research method

The aim of this thesis is to investigate if a mobile-based address system is needed for Uganda’s

international trade to improve and converge with the global market. Countries like Ghana,

South Korea, Rwanda, Mongolia, and Kenya have understood the importance of implying an

address system to improve standards of living in their countries and creating a better business

environment. The outcomes originate from both direct and indirect factors, with many

influences along the way. The situation regarding addresses in Uganda is an ongoing process;

it is affected and formed by current events. Quality data obtained through interviews collect

observations, experiences, reflections, analysis, and discoveries from the interviewees in a way

which creates value for this thesis. Gathering information through interviews is desirable when

discovering new dimensions and creations (Blomkvist and Hallin, 2015). Because the reactions

and fallouts from implementing something new in a society are dependent on culture, norms,

knowledge, experiences, and values among the inhabitants, it is good to get information from

qualitative data, and not quantitative.

According to Grüne-Yanoff, the goals of qualitative data method are to help explore behaviors,

processes of interactions, and individual’s experiences, values, experiences, and analysis in a

“natural” context (Grüne-Yanoff, 2017). In addition, this method made it possible to ask follow-

up questions and get support for different claims; something Thomas, Nelson, and Silverman

(2015) call ‘conversational format.’ Thomas, Nelson, and Silverman (2015) also point out how

most often, the participants receive the same questions from the interviewer. However, the exact

wording, order of the questions, and follow-up questions asked can vary (Thomas, Nelson and

Silverman, 2015).

The questions used during the interviews for this thesis (see appendix) worked as a foundation

to form the discussion; the interviews took different tracks depending on the interviewees’

interest, knowledge, and perspectives. By doing so, the most valuable information was gathered

from the area where the interviewees felt most experienced. Grüne-Yanoff also mentioned the

importance of constructed validity; how well the main point in a test can be measured through

scores or data gathered. Consequently, even if uncertainty arises through not knowing what the

future will bring, and thereby affects the circumstances for the subject discussed, using

qualitative data gives the opportunity to analyze and discuss possible consequences of present

activities. The participants in this study have multiple years of perspectives and experiences,

resulting in abilities to reflect over changes and impacts they have seen and experienced along

the way.

It is important to note that people can experience and analyze situations differently. The

interviewees answered the questions from their own perspectives and knowledge; the human

factor plays its role, which can affect the results presented in this thesis. The source reliability

and validity are affected by the contestants; poor knowledge, made-up claims, lies, poor

proximity, public opinions, self-motives, and influences from others can affect the answers.

How the questions are asked can also affect the answers; tone, pitch, speed, and volume

(Treasure, 2013 and 2017). Thomas, Nelson, and Silverman (2015) emphasizes the problems

associated with not performing an interview ‘in-real-life;’ how nonverbal signals and

communication can easily be lost.

33

Using only memory and writing down everything after an interview has been conducted is the

least preferred technique, according to Thomas, Nelson, and Silverman (2015). They also

mention that only taking notes and not recording the interview is problematic because it requires

the interviewer to do two things at once. Listening and writing simultaneously decreases the

efficiency of them both, the interviewer is kept busy just as thoughts and observations get mixed

together.

Scientific inference is the act/process of reaching a conclusion from known

facts/evidence. For qualitative research thesis direct inference, projection, and

generalization are used. These three are called “inductive inference rules” and are

used to amplify knowledge we already know, but they can lack logical structure

and lead to false conclusions. (Grüne-Yanoff, 2017)

To control for this, the participants answers were compared; the low variance and their

explanation along their answers could be used as support for their claims. Because of time

restrictions and distance, some of the interviews took place over technological devices and

programs; e-mailing and Skype. To eliminate misunderstandings and confusions, the questions

asked, and information collected were gathered both in English and Swedish as a convenience

for the interviewees. The interviews were also recorded to decrease the risk of missing

important answers and communicational signals. After the interview was done, a summary in

English was made. This summary was later sent back to the participant for a recheck to see if

the summary mirrored their ideas and claims. To keep in mind is how everything; environment,

interviewer, interviewee, internal stress, language barriers, the questions, the knowledge level,

etc., affects how comfortable the contestant feels and how they respond. Consequently, every

bias, impact factor, and circumstance cannot be eliminated when collecting qualitative

information and data.

10.2. Confronted limitations and problems

Uganda is an emerging economy with infrastructural challenges, where it has been hard to

collect reliable geodata and track changes. Even so, through the penetration of technology, the

situation is changing. With time, quantitative data will be accessible for evaluation and research

purposes. However, at this moment, qualitative data is more relevant for this thesis as it is

available and provide answers that consider social factors such as culture, behavior, norms,

regulations, and governmental circumstances. Use of interviews fit the purpose of this thesis.

Travel to Uganda to interview people directly was constrained due to time and cost.

The participants have worked directly or indirectly with firms and people affected by the

business environment and infrastructure in Africa. Their experiences and positions make them

reliable sources of useful information concerning the subject (see table further down). However,

biases are common and must be considered. For example, in this thesis there might be some

participation biases and cultural biases; four out of five interviewees are westerners, therefore

they are comparing and judging from a westernized viewpoint. Collier and Mahoney (2011)

point out how selection bias is one of the most common concerns for qualitative research papers.

They also mention how controlling it via random selection regarding interviewees leads to

trade-offs; controlling selection bias can bring about new problems. Many potential participants

were contacted for this thesis, but only those who responded and showed interest in contributing

became the ones used in this thesis.

34

The method which gathers the most relevant information leads to comprehension, and the most

material needed to answer the research question should be the one used (Grüne-Yanoff, 2017).

In the end, six people were interviewed.

Summary table of the interview participants:

Contestants Occupation Connection to Uganda Focus and expertise How he/she became a

participation

Karoline

Beronius,

Apr 10 & 13

- 2018

CEO at Map

Project and

worker at the

research office

at Royal

Institute of

Technology

(KTH) in

Stockholm.

Frequently visitor and

involved in projects

affecting Uganda’s

growth, sustainability,

and development.

Technological

solutions and

address systems.

Through her connections to

KTH and contribution in

innovative research, I found

her information of the

school’s webpage.

Information was gathered

both through face-to-face

interactions and e-mail.

Benedetta

Lerva, Feb

13 - 2018

A researcher at

Stockholm

University.

A former worker in

Uganda and she is

researching about

topics connected to the

country.

The base of the

economic pyramid

and development.

Her personal information was

found on Stockholm

University´s webpage.

Information was gathered

both through Skype and e-

mail.

Mike

Debelak,

Mar 19 -

2018

Executive

director at

Inclusive

Business

Sweden.

Business partners with

organizations with the

aim to improve the

situation for the poorest

people in Africa and

firms who want to

invest in the country.

Innovations,

business activities,

and sustainable

actions for global

development, and

base of the economic

pyramid.

His information was found on

the Internet when I was

researching about Swedish

firms which are operating in

Africa. Information was

gathered through skype.

Sandra

Attermo,

Mar 20 -

2018

Founder and

manager at

Lenders

Without

Borders.

A part-time worker at

her company based in

Uganda.

Microloan, credits,

and international

investors.

Her information was given to

me by a classmate.

Information was gathered

both through face-to-face

interactions and e-mail.

Andrew

Byaruhanga,

Mar 20 -

2018

Trade

promotion and

communication

officer at the

Swedish

embassy in

Uganda.

Born, raised, and live in

Uganda.

“Inside” information

about Uganda’s

culture, norms, and

development.

As I contacted the Swedish

embassy in Uganda they

connected me with Andrew.

Information was gathered

through e-mail.

Julia

Torstensson,

Mar 27 -

2018

Consultant at

Business

Sweden.

She works and travels

around in eastern

Africa through her

occupation.

ICT, how to invest

and get established

in Africa as a

western/Swedish

company.

Her information was found

on the Internet when I was

researching about Swedish

firms which are operating in

Africa Information was

gathered both through Skype

and e-mail.

35

11. Empirical analysis

Through interviews, information was gathered which works as the results for this thesis. Face-

to-face, e-mail, and Skype interviews were used, some in Swedish and others in English to

make it most convenient for the participants. (The fundamental questions used as pillars during

the interviews can be found in the appendix)

11.1. Benedetta Lerva

Ms. Lerva is an international economist with a focus on economic, agricultural, and

educational development in Eastern Africa. She has been working in Uganda for ‘BRAC

(Bangladesh Rehabilitation Assistance Committee) Uganda’ where she was involved in a field

implementation of two randomized control trials (Weitz, 2017). BRAC is an organization

offering service in areas such as microfinance, education, health, ultra-poor programme7,

agriculture and livestock, and empowerment and livelihood for adolescents. BRAC mainly

targets women and help them start small businesses, but Ms. Lerva worked with farmers and

those at the base of the economic pyramid during her time in Uganda.

Making sure that everyone in the society, from all social classes, pull one’s weight to making

the society grow and evolve is important. The mobile phone has opened up many new

opportunities for people in Uganda, and today it is very common to have at least 1 phone per

household, even if it got the same features as a phone from the 90’s, says Ms. Lerva.

Smartphones are mainly found in the capital, while cheap Chinese versions, so-called

Chinadroids, are common elsewhere. The main reason is the cost associated with the different

versions and only people with a certain income can afford smartphones. The network access

has been spread across the country and “I sometimes had better internet connection in rural

Uganda than central Los Angeles.” Activities like call, text, mobile money (paying for school,

health care, transfers, remittance back home), etc., are very common. In rural areas, people

often got a mobile money account, but it is not activated; they have not connected it to their

phone number and can therefore not use it.

The government, together with local communities, have been focusing a lot of providing IDs

for the citizens, but because of lacking public service and lacking the advantage of having one,

many people do not see it as necessary. Ms. Lerva mentions how identification can be needed

for purchasing sim-cards and some healthcare services, but not always. No centralized system

is established, but some kind of birth certificate or baptizing documents can be used when

children are about to attend school. Literacy is not very universal, which makes it challenging

to use a phone. Most information and communication occur via speech, which is also the case

regarding locations and directions. Today, landmarks are used together with plot numbers in

most parts; only a few areas got street names, signs, or address features. Physical addresses

would make the system more efficient, even if ‘Google Maps’ are useful most of the time.

Literacy is not the only obstacle, most Ugandans cannot read maps, not even the highly

educated. Among farming villages, trading centers are the meeting spot for everything from

7 Focus on the people living at the base of the economic pyramid and how to improv their socioeconomic

situation.

36

communication, trade, pick-ups, and charging phones. MC drivers are used as the main

transporters, taxi drivers, and middlemen. They know the area the best and give directions to

those in need. Uber operates in Kampala, but they lack knowledge about how to work a map as

well. According to MS Lerva, after ordering an Uber you have to call the driver to guide him

to you for pick-up. An address system will make everything more accurate and precise. It would

definitely improve the situation for emergency vehicles such as ambulance, police, and

firefighters to do their jobs. Currently, people try to use their contacts and MC drives to provide

help when needed. Confusion and unnecessary time delays are common because of the lacking

knowledge and infrastructure.

Regarding the chicken or the egg dilemma, Ms. Lerva points out how it is important to provide

new technologies, features, and services into the society, to make it possible for people to try

them out; figure out how and why they are beneficial in daily lives and for businesses. Street

names would benefit them. When it is available people will start using it; Ugandans are

adapting. After hearing and reading about Map Project, Ms. Lerva comments on how it is a

great idea. If the technology also works for older phones the whole country would benefit even

more, mainly because the infrastructure is the worst in rural areas. Most people live in rural

areas and use “old” (non-smart) feature phones. Daily tasks in rural areas can improve a lot

through small changes and will thereby benefit a lot as their phones get access to new features.

Rural areas need better transportation and delivery solution and thereby are in need of services

such as an address system.

E-commerce is increasing, but mainly in Kampala where people got more money, opportunities,

and the average education level is higher. Even if e-commerce is well-known within the capital,

many people do not trust the services and delivery. According to Ms. Lerva, she often gets

requests from Ugandans she knows to buy specific brands to bring next time she is visiting

Uganda. The locals don´t trust the delivery system and transportation costs are high, they are

afraid of not receiving their order or get a fake product even if they pay for a real kind. To

change the attitude toward online shopping, proof of a well-working system must be given.

People want good experiences and see the benefits of using the system; getting the right

products, for a good price, within a relevant timeframe, and delivered to them or to a place close

by. Physical address system could help accomplish these “requirements” and increase e-

commerce activity. Communication and connections are very important for collaboration and

trade to occur. Uganda has adopted many new technologies from abroad in their own way,

which sometimes mean that they skip steps along the developments. Electricity is important,

and the penetration is increasing a lot. However, Uganda never got electricity cables, they got

right into solar power technology. Just like they skipped using regular phones, via landlines,

and started with mobiles right away. These kinds of things have been applied and adapted very

fast in Uganda thanks to the private sector. It is the providers, not the government, who has

driven the processes. Ms. Lerva mentions how collaboration with the government can be good,

but very time-consuming. The government cannot always multitask, and their operational

structure is not always productive.

Regarding address systems, Ms. Lerva points out how Map Project is a good starting point, and

how being able to ‘pin directly on a map’ can be a good feature. Physical addresses lead to

opportunities; making it easier to reach new markets, making transactions easier, and making

transportation/delivery more efficient. International collaborations would also benefit, but the

problem here is the security. Uncertainty and lack of trust in the social institutions prevent

international players from entering the Ugandan markets. There is nothing like an enforceable

37

contract; which can lead to illegal activities and frauds. However, if you would get caught for

performing illegal activities it is very easy to pay yourself out of problems. The way to go is

probably using the private sector and make mutual contracts, according to Ms. Lerva.

11.2. Mike Debelak

Mr. Debelak is the Executive director of ‘Inclusive Business Sweden,’ which are helping

businesses to meet global development needs via innovations, inclusive business activities, and

sustainable actions. With focuses like “innovation against poverty,” “women in inclusive

business,” and “go Africa,” they want the private sector to be the main player in developing

products, services, and business models. Inclusive Business Sweden got their eyes on the BoP

(Base of the Pyramid) which includes the billions of people who live under $8 per day.

There has been a lot of new activities in Africa in recent years, but there is still a big risk

associated with investing in Africa. Corruption put restrictions and barriers on the private and

public institutions’ development. The current infrastructure does not provide the optimal

transportation system and leads to limited reliable energy. Additionally, educated working force

is limited, women inequality occurs, and financial services are not applicable to everyone;

leading to fewer job creations, says Mr. Debelak. Regarding trade across borders, the main

problem is openness. It can be easier for a country in Africa to trade with European country

versus their neighbors because of, such as political restrictions. ‘East African community’ and

other unions/agreements are improving the trade potential, and many African countries look up

to developed countries in hope of starting to trade with them. The middle class in Africa is

growing and the demand for qualitative products, from other nations, is increasing.

The mobile phone has done a lot in terms of payments, microfinance, internet, business

opportunities, information, healthcare systems, etc. “We expect more mobile-based services to

be delivered to stimulate more activity,” says Mr. Debelak. Even so, the mobile phone is not

everything. “You cannot eat the mobile;” there are other services and accesses needed to reach

more potential for the whole society. Physical addresses would help socio-economic growth

and increase potentials for international commerce, according to Mr. Debelak. Especially the

younger generations adapt the new technologies, but the main focus is still at a local level rather

than global perspectives. Ugandans use technology for local activities, but also to find out what

can be found outside their nation. People start demanding products from abroad, especially

from other continents than Africa because they look down on African quality. It might change

over time, but many people in Africa want to improve their local activities, rather than starting

businesses which can make money through international commerce.

Navigation is very limited, addresses are mainly described through landmarks; “I live [this far]

away from that landmark.” They do not know the name of their street (if it even has one), and

calling someone in real time, as they are approaching the building, is most common. They listen

more to verbal descriptions than using technological applications. Mr. Debelak also comments

on land grabbing; where their land begins and starts are not documented, even if many people

claim they have been using the land for generations. This is a big problem in the area and will

take a while to sort out. There are big differences between urban and rural areas. Implementing

an address system will lift this question even further and point out how exposition of rich natural

resources can pull investors into the areas. Mr. Debelak states how an address system is needed

for economic and social perspectives, but how the population will have to go through a

38

transitional period where people might question land borders, new names of the streets,

governments interventions, etc. Demand for a product from abroad is growing and will continue

to grow. Having an address will create great value for people in their daily lives, especially

through the increased financial security aspect; investing in your land and building a house

creates value. However, not knowing or being sure of what will happen with their land in the

long run, land grabbing can occur, prevent people from investing. Another factor associated

with addresses is delivery. Ugandans do not rely on the present system where post offices or

pick-up stations might receive the product a long time after ordering it. Being able to use a

home address as a delivery destination would save time and probably increase the demand for

proper delivery firms; push the logistics market to become active in rural areas. The increase of

efficient delivery firms can improve the supply of goods to villages and create jobs for locals.

Mr. Debelak also assumes that implementation of addresses could be used for personal

registrations, and make it easier to get ID, bank account, create collaboration, and business

connections.

For international players to participate in local markets, it is important to have a well-

established address system implemented as a solution provider. GPS-based systems are

valuable and help non-locals to find services nearby. Especially if you are new in an area, it is

easier and more time efficient to get ordered products to you versus, for example, having to find

the pick-up station. The importance of face-to-face interactions is still important within business

activities, which means that there must be a usable system helping people to find right

destinations and routes. Mr. Debelak ended the interview by a commenting on how, in general,

the whole population and society would experience a net positive progress by applying a

structured and accessible address system. Eventually, it would improve structure, navigation,

delivery, security, etc. It might be a transaction period with challenges, but in time Africans

will appreciate the benefits. In 10 years, Africa will have experienced a lot of progress and be

a part of the world’s economy and global community. Through more advanced technology,

trade flow has increased. Even so, hopefully, the problems like corruption have been tackled.

11.3. Sandra Attermo

With a focus on microloans, Sandra is a credit analyst at the company ‘Froda,’ placed in

Stockholm. Froda is offering smart business loans to small enterprises. She is also the founder

and managing director for ‘Lenders Without Borders’ providing financial services, such as

micro-loan in Uganda (Lenderswithoutborders.com, 2018). They are focusing on small-scale

businesses and aim to unleash all potentials in the area. Their mission: “To be a platform that

connects small-scale Ugandan business owners with a network of international investors

interested in doing socially beneficial investments with a competitive interest rate.”

Definition of house and street can be very vague in Uganda. They are behind Europe in many

aspects and even the people with higher education in Uganda lack, what the western world

would call, basic skills such as reading maps. Cultural wise they differ too; attitude toward

working is not as high, and they like to get things taught to them rather than figure out things

themselves. Ms. Attermo described one situation where she sold her old phone to a Ugandan

college and some days later she received an e-mail from the college, asking how to log-out from

the app ‘Facebook messenger’. He did not even try to figure it out himself.

39

Cultural and behavioral norms block Ugandans from discovering technology’s full potential.

Consequently, they do not take advantage of the information available. Applications like

Facebook and WhatsApp are used a lot. WhatsApp is probably used the most because it is

cheaper and works better for fewer data; buying data is cheaper than sending a text. Moreover,

even if Google Maps can help the citizens find new places and offers in their area, they want to

get the information for the first time via verbal communication. Ms. Attermo analysis about the

chicken or egg dilemma included how it is important to have everything available, but also for

a low price. In the past years, Chinese and Indian people have started businesses in Uganda and

bought older companies which operate there. Asian business strategy focusing a lot on prices,

and the result has been shown in Uganda. Before, the two biggest networking and mobile-data

providers ruled the market as an oligopoly, but now the market competition is about price

strategies and price wars. The lowered prices give opportunities for a broader audience, which

results in more efficient and productive daily activities. Even if many people do not have a

smartphone, they have a cheaper version. Most often it is a Chinese copy which got constraints

and is very slow, according to Ms. Attermo.

Because technological services are getting more available in the developing society, the demand

for products increases as well. People want qualitative products which they associate as being

made in Europe, not Asia. Still, high tariffs and transportation costs are big problems.

Additionally, the insecurity of receiving the product they order decreases the likelihood of

actually buying it. Computers are very expensive, and in some cases, second-hand products

have an even higher tariff. Ms. Attermo wanted to send down second-hand computers to

Uganda as gifts, but with all transportation cost and check-points involved it was not worth it.

Bringing things to Uganda during visits is still the most efficient method. In that way, you get

rid of the non-trust and insecure delivery issues. Plus, the buyer can see the product as they pay

for it. They think in very short terms; investing for the future is rare. In general, the lack of

capital and assets prevent people from making big purchases and business investments. Many

people also lack access to financial services and thereby have no money to spend. Historically

they have never had to save and think in long terms; when crops are full grown they are eaten,

and when you earn money you spend them right away; live for the day. The cultural attitude is

different compared to the western and Asian world. Ms. Attermo points out how most people

in Uganda are farmers and operate with tools which were used a long time ago in Europe, which

makes their working method inefficient. When farmers see money, they want it right away.

Consequently, a buyer can get products for very cheap. Knowledge about how value-added

works must be spread among the farmers so they make better deals; process the product a little

can higher its value and increase its durability.

Regarding time efficiency in the daily life in Uganda, Ms. Attermo explains how better

infrastructure and an address system, which everyone understands and use, can improve the

situation a lot. At the moment, it is so hard to go from point A to point B in an efficient way.

Attending a business meeting takes the whole day because the bad structured and un-organized

transportations to and from the meeting. In Europe and other parts of the world, when people

are about to attend a meeting, they can check their e-mails, make calls, check their laptop, and

other job-related activities on the way. That is not the case in Uganda. People do not flash with

their electronic products, because of the risk of robbery; many people survive the day though

criminal activities. Resulting in less work being done during the day; lower productivity. To

conclude, reducing travel cost by introducing an address system would result in more time in a

place where work can take place; more productivity covered throughout the day.

40

During the interview, international commerce and collaborations were also discussed. Ms.

Attermo enhanced how, to some extent, addresses can make international firms more interested

in Uganda through the consequent of better social services and orientation. However, addresses

will not solve the biggest obstacle regarding more trade. Ugandans lack of education and

knowledge make them more interested in local activities; they do not understand the possible

benefits associated with international commerce. To add is also how other countries lack

knowledge about Africa and the benefits associated with investing there. Trade unions and

agreements are approaching, e.g. East Africa association want to make it easier to travel in the

area without a passport and transport things across the borders. Even so, neighboring countries

like Kenya probably take advantage over Ugandans low-price products and lack of knowledge,

resulting in arbitrage, according to Ms. Attermo. To fix this “usage” and other problems in

Uganda Ms. Attermo strongly points out the importance of the school system to adopt the new

technology. The attitude regarding adapting new technology is good among all generation in

Uganda, mainly among the younger. However, sourcing and source criticism are close to non-

existing; many Ugandans think that everything online is true. They are also afraid of doing

something wrong with the phones. As mentioned before, they do not understand the basics of

how a phone works and they rather ask then figuring it out themselves. “While on the phone,

they think they will delete everything if they press the wrong bottom. There are also many

among the older generations who are analphabetic, which makes the technology even harder to

comprehend” according to Ms. Attermo. This also becomes a problem if implying a mobile-

based address system in Uganda. People trust word of mouth and people use main buildings

like the gas station, malls, churches, etc. to navigate. They trust and ask neighbors and locals

about directions, locations, and nearby services. The MC-drivers are usable because they know

their areas by heart. MC-drivers are also operating as taxi, delivery people, transporters, and

news reporters for small villages. MC-drivers can have a job as a middleman; going to and from

Kampala with products for their home village. Individuals can both order specific things from

this middleman or buy things which the MC-drives brought to the village at an earlier point.

Making purchases through middlemen can take time and be expensive for the locals. Often, it

takes weeks to get a spare part to a machine used during farming. Resulting in delays and less

efficiency for the workers. Ms. Attermo highlights how a well-established delivery system can

improve the situation a lot, especially in rural areas. An address system would be needed to

improve the infrastructure and create a good business environment for potential delivery

organizations. Today, delivery firms are very rare. Kampala has it in some places, mainly for

citizens and business which belongs to the top of the economic pyramid, but if

addresses/locations/destinations would be easy to find the demand for delivery firms would

create a market. Ms. Attermo says it is about fixing the business environment and making it

possible for delivery firms to create a profitable service through implying address system, so

they can operate in an efficient way. Even so, the people must adapt and trust the service as

well for it to be successful and benefit the society.

The need for firms to be situated in areas where housing rent are high, such as central Kampala,

and where customers directly can see them becomes less important. With a well-used and

functional address application, many firms can contact their potential customers through

technology; they can move their office to a cheaper place and still keep customers. Through

this change, businesses decrease their monthly costs and can make a higher profit. The money

can be used for other purposes like investing in the business, increasing standards of living, etc.

When people figure out more about the possibilities technology can bring, it will also affect the

e-commerce. Ms. Attermo describes the importance of getting people to trust and use the

41

available services. E-commerce will increase as average income level and the middle class in

Uganda grows. Demand for better products and more customer choices will be a fact. Today,

Ms. Attermo states, few trust the Chinese products, but they buy them because they are cheap.

Most Africans look up to European brands because they think the quality is higher.

Consequently, if they could buy things from Europe, and trust the delivery system, they would

use it. Of course, it requires delivery service to work, transportation costs to be kept low, and

fast service to be in place. What still must be considered is the risk of increased criminal activity

Ms. Attermo highlights. When delivery of higher-quality-products is being transported across

the country, it will attract thefts; bringing new problems.

Ms. Attermo describes how almost everyone in Uganda has an ID today. It is required in

increasing circumstances, such as when entering business buildings, institutions, when getting

a sim-card, etc. The government, organizations, and services want to keep track and registration

of their visitors and users. Personal data includes ID (security number, name), mobile number,

and home-address in most countries in the world, the requirement of providing this data in

Uganda increases as well. An address system would make it easier to obtain all data required

in the business world; nationally as well as in international business activities. Another thing,

Ms. Attermo explains, which is required in Uganda when people write down their personal data,

is also their “local-nickname.” Uganda is still very verbally-based; people still ask each other

for information, directions, and knowledge about people, services, and places on the street.

According to Ms. Attermo, people do not move often because if moving the locals will have a

hard time keeping track of where people can find you. Everything is local-knowledge-based,

and nicknames are linked to a person and their home. She also adds the importance for her

professional, owner of a micro-loan company, to keep track of where a client lives and does for

a living. An address system would make it easier for her to do that and gain information

regarding a client. Sadly, many people lie to get a loan and say that they own a shop which

actually belongs to a friend. If peoples’ address, name, security number, and business could be

found in a register, criminal activities would decrease, Ms. Attermo highlights.

Having a national registration data-set would make the black market and criminal activity

decrease. However, with harder restrictions, laws, and regulation many people would not

survive; they get their daily income through selling products on the street illegally. They do

what they must to survive, even if it is criminal activity, which might be their only choice

considering their education level, family situation, and background. Ms. Attermo mentions how

prices are lower among black-market-products. Many people buy those because that’s the only

thing they can afford. Another potential problem associated with implying addresses are land

grabbing. Nothing is written down, no proof of ownership, which the government and richer

firms take advantage of. To add is how farmers in Uganda, as mentioned before, have a really

hard time to say no to money. In a combination with a short-term perspective, it is easy to buy

land from the farmers at a discounted price. Resulting in firms taking over natural resources,

while previous farmers live on the money they just got. Further on, without any other income

source, the farmers’ money runs out and he ends up with nothing.

Ms. Attermo believes that the private sector will be the leading party in Uganda’s development.

Productive and efficient private sector can bring the whole society forward and create win-win

outcomes for all market players. It is the suppliers and demanders who have to come up with

agreements, contracts, solutions, and strategies during operations. This should also be the case

for delivery-organizations. Ms. Attermo suggested a solution to online customers who lack

trust, security, and information when shopping involving a third party who bares the risk during

42

a transaction. She describes how a third party should hold the money between the point when

the customer place an order and pays and until the customer received the product. With that

said, it is in all parties’ interest to make the delivery as fast, smooth, and efficient as possible.

The supplier gets their money from the third party when the product has reached the customer.

Additionally, Ms. Attermo says that Ugandans get reliance on services if they see other people

using it with good results. Ugandans can be conservative and careful in many circumstances.

Ugandans do like getting information through verbal communication, and meeting people face-

to-face for business purposes are still important. It is very important regarding big agreements

and cooperation between international partners to discuss and agree upon things in real life; it

is more reliable and trustworthy. This is a big factor to why physical addresses are needed to

be implemented. It can improve time efficiency within the daily business market in Uganda,

according to Ms. Attermo.

To conclude the interview, Ms. Attermo was asked where she sees Uganda in 10 years. She

pointed out how technology and global activities probably have improved. The older generation

who are not as adaptive to technology and are analphabetic will become a smaller minority.

Many Asians in Uganda will hopefully show the locals that hard work pays off, which can

change the Ugandans attitude toward work. Ugandans must become more curious and figure

out solutions themselves, not seeking the answers from others. Throughout the years, hopefully,

corruption will decrease and open up new opportunities for the country. However, the most

important activity to focus on is the school system. Education is the key to success; they must

learn about the international world and how to read maps. “I believe an address system is needed

in Uganda to improve time consumption and efficiency, but education will solve more

problems,” according to Ms. Attermo.

11.4. Andrew Byaruhanga

Mr. Byaruhanga is born and raised in Ugandan and works at the Swedish embassy in Uganda

as ‘Trade promotion and communication officer’.

Today, the mobile application and features most frequently used in Uganda are Mobile money,

Facebook, What’s-app, Twitter, and Bulk SMS. The attitude towards new technologies and

mobile phones is very positive, resulting in many new activities in Uganda. Social media has

globally become a force to reckon with. The innovations in communication have attracted

businesses to use phones to communicate aggressively and effectively. So much so, that the

Swedish Embassy now publishes official communication on its social media channels. Those

businesses without access to smartphones can still access information through the use of USSD,

which has become quite popular in Uganda. To talk about the obvious, the advent of Mobile

Money in East Africa as a whole, including Uganda, has led to most business transactions

occurring over cell phones. This has greatly contributed to growth in various sectors and seems

to be of increasing importance across the board. It has also led to many changes, some have

been accepted by the population while others have had a harder time to be implemented. Social

changes are generally sensitive areas in Uganda, unless the positive impact of the change in

question is undeniable and obvious, according to Mr. Byaruhanga. He also adds how Uganda

is a very conservative country in some circumstances, some products need time to be accepted

locally while other products are adapted after an adjustment has been made to fit the locals.

Ugandan got a positive attitude towards international products and they are net importers.

43

Thereby they must be open for international trade, even if both the government and public sector

are trying to make people buy local goods, says Mr. Byaruhanga.

Regarding navigation and locations, Mr. Byaruhanga points out that most people in Uganda

make reference to a well-known establishment in their vicinity and then give directions from

there. The directions normally refer to landmarks that are visible and easy to see so that the

person does not get lost (certain trees, broken fences, colors of gates, condition of the road etc.).

The drivers of boda-bodas8 know their areas and many people turn to them for directions and

locations. Depending on the people in question and the area in question, Google Maps are also

an option. Not much has changed in recent years on this topic, a bit more has happened

regarding purchases. Today, people use e-mails, calls, and the Internet to reach suppliers who

are too far away to go there in person. The transportation of the product can also occur in

different ways. Depending on the product, public transportation, taxis, boda-bodas, private

vehicles, courier services, plane, train, etc. are used in Uganda, according to Mr. Byaruhanga.

Since some years ago, postal-offices are no longer in use, and delivery directly to a home-

address is only available for a certain class of Ugandans.

It is often this certain class of Ugandans which also got knowledge about international

commerce, and demand products from certain international brands. Among the rest of the

population, only people living close to a border-point buy things directly from abroad.

However, because we [Ugandans] do not manufacture some basic things like matchsticks, fuel,

etc. we are dependent on imported product in one way or another, says Mr. Byaruhanga. He

also emphasized the importance of increasing productivity and efficiency among the lower-

class Ugandans. He says that the biggest issue for the rural entrepreneur is the reliance on rain-

fed agriculture and poor access to credit for value added. The lacking infrastructure in the rural

areas is a problem, but it is more about getting roads than an address system, and local activities

are in focus, not international connections; the farmers’ products do not reach the international

market’s quality and standards, Mr. Byaruhanga comments. Right now, making it easier for all

classes in the society to start businesses, get in contact with markets, have more opportunities,

and accessibilities are of a high need for the Ugandans, according to Mr. Byaruhanga.

“By Ugandan standards, I may not be considered as having low income, but I live on a street

whose name I do not know, and my house number is not there. It is the upper middle-class

Ugandan that needs street addresses more than low-income Ugandans,” Mr. Byaruhanga stated.

During the interview, Mr. Byaruhanga got a question if he thinks that a well-structured address-

system is an important piece of the puzzle for the Ugandans; to access goods and services from

more markets which would help sustainable development. He answered “yes of course;” better-

structured addresses will help people order for commodities easier, however, sustainable

development is a complex issue. I do not think addresses are the only thing needed to change

the situation. Corruption is present, which makes the outcome uncertain, but the black market

would probably decrease, and the tax revenues increase if an address system would be

implemented.

8 bicycle and motorcycle taxis

44

According to Mr. Byaruhanga, the average education level varies across the country. The map

literacy is low everywhere when being compared to European standards. It can become an

obstacle for an organization which tries to increase the usage of their address system solution.

Government bureaucracy, socio-cultural powers (especially if you are going to name roads in

sensitive areas), local governments, religious institutions, and cultural organization would

create challenges too. Additionally, there is a very poor urban planning in Uganda and a lot of

informal settlements (slums) which can threaten changes and implementations of new services.

Mr. Byaruhanga also points out how land grabbing is a vast problem at all levels; family level,

by cultural institutions, government, individuals, etc. It is a sensitive topic in the country and

people are willing to use wielding pangas9 and spears to protect the land they consider owning.

According to Mr. Byaruhanga, there is a belief in central Uganda that the kingdom owns all the

land, which leads to the existence of people utilizing land that is not theirs (squatters). Uganda

has different land tenure systems, mailo (titled) land, kibanja (rented) land that belongs to the

kingdom, communal land (which as much as it is owned by an individual, anything done on the

land must be agreed by the community) and others. There is also land that is divided into rather

small plots that are shared by family members, plots that are so small that it cannot be legally

allocated to an individual. This is a major challenge and it is also a prerequisite for conflict and

land grabbing, says Mr. Byaruhanga.

As much as this is quite necessary, mobile-based address systems will be accessible to the few

and not the majority; the majority live in rural Uganda without access to adequate electricity

and without smartphones. They are also the most difficult to map due to accessibility

challenges. The scale of a national-address system also implies the need to work with local

governments which comes with a lot of red-tape. Should the focus be on urban areas, then this

would be rather useful as the urban middle class has an increasing need to be mapped for

accessibility. Google Maps is already quite useful, and addresses would help this along. Mr.

Byaruhanga also explains how daily lives and economic activities would get more time- and

money- efficient if addresses would be implemented, but only in some areas. In urban areas,

SMEs who rely heavily on visibility and physical presence, from restaurants to small

supermarkets, courier companies, freight companies, logistics companies, and maybe taxi

services would be positively affected. Even so, they are not the majority, so the gross impact

may not be visible. To conclude, I think address is key, among many other things that would

need to be included. “I cannot speak to the degree addresses are needed as that would require a

lot of technical research and development of economic models to quantitatively identify to what

extent addresses are needed for growth of a company,” Mr. Byaruhanga announces. Not to

forget though, is how face-to-face shall always be better than online interactions, in my opinion,

in order to build stronger and lasting relationships with businesses. The softer means of

communication will always be an addition to physical interactions. Especially in cases of

international trade.

11.5. Julia Torstensson

Ms. Torstensson works as a consultant for Business Sweden at their office in Nairobi, Kenya.

The usage of ICT (information and communication technology) in Africa is growing a lot and

it’s a big part of Ms. Torstensson’s daily tasks as she is supporting and helping Swedish

9 A machete

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business to grow in the region. Business Sweden connects the public and private sector in

different countries to increase trade and collaboration; leading to a smooth entry for Swedish

companies.

The East African region is one of the fastest growing ICT markets in the world and locally

Nairobi is called Silicon Savanna (after Silicon Valley) for its innovative focus and activities,

says Ms. Torstensson. People in the area have a positive attitude towards new technology,

which has been shown in high adaption rates. Nevertheless, the biggest obstacles which prevent

even faster economic growth in the region is the inefficient usage and lack of public service.

Corruption is present, which affects the private business sector, entrepreneurship, and general

business events. To add, though, is how the government finance big industrial activities,

infrastructure, and projects, which stimulates employment, growth, trade, and development.

Ms. Torstensson mentions how this form the private sector’s actions, as well as open

opportunities in the region’s business environment. Still, the business environment in the region

is not optimal. To stimulate international trade in Africa, contributions can be made from

different angles; Uganda can work on making it easier for its inhabitants to reach out to the

surrounding markets, while an effort to bring knowledge to the international player about the

business opportunities in Uganda can also increase interest. Even so, less bureaucratical

processes, higher security for firm activities, easier to start/register businesses, lower tariffs,

and increase opportunities are needed to form a well-working business culture, according to

Ms. Torstensson. Regarding security, using enforceable contracts, getting the right information,

and connect to the right supporting institutions are possible today, but are not always used. In

the case of Swedish firms, organizations such as EKN (Exportkreditnämnden) can be used as

an insurance company, which bear the risk when operating abroad. Resulting in more Swedish

firms taking risks and enter the African market.

According to Ms. Torstensson, mobile technology and mobile payments have revolutionized

Africa’s business possibilities and opportunities. It has affected many people and their

efficiency, availability, security, and gathering of information. It saves both time and money

throughout daily activities. Mobile applications such as Mobile-payment solution, WhatsApp,

Facebook, and Twitter are very common, and some organizations do not have a webpage but a

Facebook-page and a twitter-account to reach out, says Ms. Torstensson. Even if technology is

involved in many Africans daily lives, landmarks, verbal communication, and directions are

used to describe locations and routes. Ms. Torstensson describes how Google Maps can be used

sometimes, but most often it must be complemented with extra information to reach a specific

destination. Asking people on the street or getting information from a friend who knows the

specific area are common, turning to boda-bodas/taxi-drivers for directions occur as well. Boda-

bodas are used for more than just getting directions and get a ride, people can turn to them for

many services such as delivery. As Ms. Torstensson talks about boda-bodas, she mentions how

most often people know the mobile number to a specific boda-boda which they always turn to

in need. Even so, Boda-boda organizations have been established, such as “SafeBoda,” which

make it possible for anyone to contact them via an app or call, to get help from any driver close

by. This has improved the time efficiency and profitability for boda-bodas; they can be reached

and get more job opportunities from “new” clients; both firms and private individuals. What is

still being considered as a problem, even if the situation is improving, is the lack of knowing

how to read a map among the drivers, and long descriptions of where to pick up and drop off

product must be communicated verbally. That is the case for some Uber drivers as well, Ms.

Torstensson comment. She describes a scenario where she had to look at the uber-app to see

where the driver is at that moment and then, through a call, describe for the driver how to get

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to her. A lot of times efficiency can be improved in these circumstances. Physical addresses

and knowledge about how to use apps which provides the information about the physical

addresses can be valuable solutions.

Regarding international products, Ms. Torstensson says that the demand increase, but it can be

expensive to buy them. Often, the customer must contact a third-party organization which

handles deliveries and transportation of products from abroad. Sometimes a person must contact

many different organizations which handle different parts of the delivery to get the product

from start to final destination. Amazon Great Britain and IKEA Dubai are some stores which

Africans can turn to for international products, Ms. Torstensson points out. Some deliveries are

only operating to a certain spot, after that, you must pick it up yourself or fix external delivery

service. To conclude, describing the service needed, describing how to get to the pick-up

station, describe how to drive to the destination, and describe information needed along the way

are still the key to making this kind of process as effectual as possible today; describe

everything. Improving this process can save both time and money for as well supplier and

customer.

Ms. Torstensson main experiences are from the inner capital of Kenya, but she still thinks that

the rural areas in Africa would experience positive effects in the long run if physical addresses

would be implemented. Before reaching “long run,” Ms. Torstensson announces how people

must have time to adapt to the new availabilities, system, and technology. They must get

educated on how to use it and how to benefit from it. In the short run, the citizens might not be

interested in changing daily routines and they do not realize the opportunities they face. Even

so, Ms. Torstensson supports the “chicken or egg dilemma”; everything must be available and

given to the Ugandans for them to be able to adapt and learn the new services, even if everything

does not occur overnight. Having an address system improves the infrastructure and makes

many activities more time efficient. Ms. Torstensson continues by visualizing, and

hypothesizes, how the people in rural areas still would have a more local perspective regarding

their businesses, instead of thinking of expansion; addresses could lead to many new

opportunities, but the people would mainly focus on local trade. When a question about negative

effects regarding implying an address system comes about, and if she has heard about land

grabbing, Ms. Torstensson answers that she knows about the land grabbing problems and how

human rights also is a hot topic. Making a digitalized system and records can be a partial

solution, but other obstacles are still present.

ID is becoming more common in the area, and some organizations’ services require it.

However, ID itself is not the most critical piece needed, but loyalty and trust are important when

offering services and during business activities. National, as well as international businesses,

do not want to experience fraud or be abused by customers or collaborators. Therefore, it is

very important to show proof of identity, faithfulness, and seriousness during affairs, according

to Ms. Torstensson. She also highlights how important it is with face-to-face interactions and

how it is a very significant part of business deals; “the business culture in Kenya and Uganda

are based on relations and the personal network. In-real-life interactions give the feeling of

authenticity and trustworthiness; it is important to get a personal connection and be able to

maintain a good connection through real interactions.” With physical addresses it is easier to

plan a real-life-meeting and getting to the specific location goes faster. From a business

perspective, a well-organized address system would help time efficiency, less imposition,

higher reachability, tracking costs would go down, and better productivity. The result would be

a better business environment, more business activities, and thereby economic growth. To add

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is how international players would see more potential and profitability in the area; increased

trade and FDI (Foreign direct investment), according to Ms. Torstensson. For the individuals’

perspective, it would take longer to see effects. Mainly because the “only locally known”

information would have to be changed, and many people would probably not want to let the old

system go away. Example, everyone in a neighbourhood knows that the biggest street in their

community is called ‘Street A,’ but according to the new national-based system it got the name

‘Street B.’ Street A would probably be used for a long time, until the national-based system has

been accepted and used among people in the area, Ms Torstensson points out. Throughout the

past ten years, people in Africa have adopted many new technologies and services. Ms.

Torstensson points out how the area is under “construction” and many factors will affect and

form its future. In 10 years, Ms. Torstensson thinks that technological improvements have been

implemented, some rural areas will have better service and standards of living through

improved electricity supply and infrastructure. It can result in the possibilities of study during

night hours and improve the knowledge level in the community, which leads to new

opportunities.

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12. Analysis; Key point and summary of the interviews

The interviewees agreed that Ugandans are very adaptable, especially the younger generations,

and how “mobile technology and mobile payments have revolutionized Africa´s business

possibilities and opportunities” (Torstensson, 2018). Opportunities emerge, and so does the

middle-class (Debelak, 2018) which results in jobs creation, higher income, higher demand for

quality products, and increased commerce.

12.1. Change is needed

Ms. Attermo (2018) points out how work ethics (willingness to work) are not as high in Uganda

as in many other countries, which is not supporting the country’s economic potentials of growth

and improved standard of living. Lacking trust and uncertainty in address-related services, such

as infrastructure, delivery, and transportation, also creates obstacles for development. The lack,

and inefficient usage, of public service together with corruption results in an inadequate

business environment (Torstensson, 2018) and a risky place for investors (Debelak, 2018). Mr.

Byaruhanga (2018) highlights the importance of making it easier to start businesses, contact

markets, have more opportunities, and accessibilities to stimulate economic growth in Uganda.

He also describes how SMEs and others rely heavily on visibility and physical presence, which

supports the benefits associated with introducing an address system. An address system can

provide better time efficiency, less imposition, higher reachability, lower tracking costs, and

increased productivity (Torstensson, 2018). According to Bolaky and Freund (2004), the most

important factor which stimulates business activity in markets is firms’ entry facilitation.

According to researchers, such as Ndiwalana, Morawczynski, and Popov (2010), Ugandans

seek and want to improve speed, precision, accessibility, lower costs, control, save time (no

delays, queue, or extra storage), and develop higher standards of living. Stimulating

employment, business activity, and market flows will boost the economic growth in the society,

which will create more jobs and market opportunities (WTO, 2004). However, some changes

are not accepted by the locals until a transaction period has passed. .According to MTN Uganda

(2018), the present mobile solutions have made it possible to transfer money and messages from

anywhere, but physical goods need addresses to be shipped and delivered in a convenient way

to the right destination. Today, shipping increases and freighting companies get busier (Russell

et al., 2014). Inland transportation is growing in Uganda, and efficient delivery solutions can

make them save both time and money. Move Africa’s (2016) initiative to improve the

continent’s transportation and logistics are essential for import and export development. Getting

rid of queue and occupied storage through just-in-time delivery is beneficial for both buyer and

seller. The government is a main player in the society which affects the labor market, business

markets, innovations, etc. (OECD, n.d.). The policies affect the implementation of an address

system and are thereby crucial for the condition of Uganda’s commerce. GSMA (2016)

emphasizes how governmental policies must support a mobile-technology-friendly

environment to help Uganda´s economic development. Stimulation, innovations, and creative

destruction brings value to the society (Schumpeter, 1942) and addresses improve a country´s

infrastructure which forms the opportunities leading to valuable actions. UPU (2012) highlights

how social-, legal-, public-, and private- sectors all get improved through an address system

implementation. The whole society benefits from this as it results in more commerce, better

collaborations, higher GDP, and improved human rights.

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12.2. Presence, similarities, and relations

To experience long-run economic benefits a country must follow the global development and

participate in international markets. Through participating in big markets, spill-over of

knowledge and information can occur. High competition level and tension are associated with

more focus on research and development (Recklies, 2015), which results in stimulation of

creative destruction, innovations, and infrastructure. Beugelsdijk et al. (2013) point out the

importance of a ‘degree of freedom’ in the economy, which increases as entrepreneurship,

innovations, and opportunities increases. According to the Gravity model (Tinbergen, 1962),

the more similar two countries are, the more they will trade. As Africa is becoming more

influenced and adapting characteristics from the western world and got access to online

services/applications they increase their chances of getting more trading partners and

experiencing more international trade. With common rules and principles, it becomes easier to

execute a transaction, which supports the importance of unions and trade agreements. Many

associations, such as Smart Africa and the African Union, have seen the importance of

collaboration across borders and how it stimulates job creation and economic growth for all

parties involved (SmartAfrica, 2018 and Au.int, 2017). Peace, integration, and prosperity will

also benefit from international commerce. Trading parties want to decrease their transaction

costs as much as possible to increase their profits. According to Williamson (1979 and 1981),

relationship, connection, circumstances, and laws affect the bargaining and fallout. He also

emphasizes how the frequency of the transaction, specific circumstances, uncertainty,

opportunistic behavior, and level of bargaining power related to the transaction are essential for

the deal. Economical, organizational, governmental, and contract law theories all play a big role

in these decisions and interactions (Williamson, 1979 and 1981). Consequently, the price of the

final product and the demand are affected by the production process and associated costs

(Economicsconcepts.com, 2018). To conclude, the governments must make policies directed

toward market entry, innovation, technology diffusion, collaboration, international

involvements, infrastructure, and transportation to improves Uganda’s economic situation

(OECD, n.d.).

Uganda has negative net exports and is dependent on imports (Mr. Byaruhanga, 2018). Unions,

agreements, and regulations improve the business environment for trading partners, leading to

increased commerce both across borders and within nations. Consequently, transportation cost

is lowered, and more efficient operations take place when the two parties share trace and ways

of handling transactions. Another activity which addresses can improve is face-to-face

interactions, which the interview participants saw as an important event for businesses.

Addresses will help individuals with the exact position of the meeting and how to get there in

the most convenient way. Physical addresses would help socio-economic growth and increase

potentials for international commerce, according to Mr. Debelak. The global market is

increasing, and it is vital to be a part of the development to ensure sustainable development

(Altman, 2006). There are current organizations, such as Map projects, which got a solution to

Uganda´s problem regarding lack of an address system. An address system helps spur socio-

economic development for everyone, everywhere (Beronius, 2018). Timbo Drayson points out

how people without addresses don’t have access to the same level of services and cannot access

loan opportunities; “with addresses, life can get better… [it] is a human right” (Nelson, 2016).

With the right business environment and accessibilities, opportunities are formed which helps

development.

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Physical addresses are one of several important factors desired to experience sustainable

economic growth. Establishing an address system will help to improve Uganda’s standard of

living via increasing commerce through opportunities, availability, time efficiency, lower costs,

and the emergence of more services in the societies. For markets to bloom, the right

environment, institutional regulations, and availabilities must be present. Providing a

technologically based address system, via a mobile application, gives people access to

information which will increase efficiency and productivity directly and indirectly throughout

their daily operation. According to Mr. Dedelak, the future will bring more mobile-based

services which will stimulate business activities. Also, physical addresses would help socio-

economic growth and increase potentials for international commerce.

12.3. Cognition

Tinbergen concluded that education and technology are the most important factors in

production and operation growth, affecting national GDP. Ms. Attermo highlighted how

education is the key to success and will solve many economic growth-related impediments. Ms.

Torstensson (2018) also supported the statement, and Ms. Lerva’s mentioned “I can see how

the required technology and infrastructure are available for many services to work today, but

the main concern is the Ugandans’ education level and knowledge regarding the usage of the

products. To add though is that everything can get better; time efficiency can improve.”

Often people don’t know how things work, how they are related, and how beneficial they are

for daily activities. “Confusion and unnecessary time delays are common because of the lacking

knowledge and infrastructure” (Lerva, 2018). The majority of Ugandans cannot read maps, and

many are analphabetic, which is problematic when both time and money efficiency can be

improved through the accurate usage of an address system. According to the African

Development Bank (2014), one of the main constraints which are blocking sustainable

development in African countries is the poor technological capability of the populace.

Many studies have predicted how digitalization and automatization will replace millions of

jobs, where the least educated will suffer the most (Vincent, 2017). Ndiwalana,

Morawczynski, and Popov (2010) reported how average education level, wealth, and

accessibilities are connected; ‘knowledge is power.’ To boil it down, when people have the

education and knowledge needed to optimize the technology and services offered in society,

they can also maximize their prospects and experience benefits. In that way, they are attractive

in the job market.

Today, most communication, information, and explanations occur via speech in Uganda., and

often Boda Boda (i.e. MC drivers) drivers are asked for directions and locations. These MC-

drivers use their knowledge and access to help people with needs, but Ugandans can become

more time- and cost-efficient by increasing their own map skills and effectivization regarding

how to reach customers. Having access to an address system and understanding how to use it

is a winning concept for both individuals and businesses. Ms. Lerva emphasizes how accuracy

and precision can increase as people start using an address system. She also mentioned how the

situation for emergency vehicles such as ambulance, police, and firefighters would be improved

if an address system was implemented.

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The main indication by the interview participants was the importance of getting the whole

population involved in the technological development and making them use the available

applications, which optimizes their efficiency and productivity. Everyone in the society must

pull their weight in making the society grow (Lerva, 2018), thereby improving the business

environment, formal economic system, and yield during daily activities. Most certainly, a

transitional period is needed for the public- and private-sector to adapt and learn about the

newly released technologies, services, and changes which later will lead to economic growth

(Debelak, 2018). With that said, as people learn how to accurately use an address system, they

can experience the benefits the system brings; a well-supporting infrastructure, business

environment, and service sector.

12.4. Sustainability

The problem though is not the technology’s accessibility but getting the people to start using

the technology in the right way. Another problem is also the cost, many Ugandans have no

savings to buy the technology. Ms. Attermo underlined Ugandans lack of capital and assets,

which prevent them from making big purchases and business investments. This problem also

poses challenges to the implementation of a digital addressing system, which can be solved by

ensuring that the service can run offline, on Chinadroids, and be accessed through low-end

phones through a USSD platform.

Studies, such as Maree et al. (2013), have shown how the spread of mobile technology enhances

knowledge, increases income, leads to better nutrition and schooling of children, makes

agriculture more efficient, improves GDP, and leads to better communications as the citizens

start using it. Maree et al. (2013) found how the least wealthy people in the society, mainly

smallholder farmers, benefit from the mobile technology via eliminating travel costs, saving

time, increasing market access, planning (call ahead), prearranging meetings for seed and buyer

collection, avoiding unnecessary trips to trading centres, and at last improving communication

and information sharing. In other words, improving infrastructure and delivery services in areas

through implying an address system will benefit all market players and inhabitants.

Results from research show the importance of a well-developed and functional infrastructure in

boosting trade, networks, and prosperity which consequently leads to economic growth

(Hammond, 2014). Infrastructural development leads to both local and remote enhancements,

which makes it one of the most efficient structural growth policies to increase wealth. Ms.

Lerva (2018) points out how it is important to provide new technologies, features, and services

into the society to make it possible for people to try them out; for an individual to get familiar

with the digital address system solution, they must be exposed to the application and see the

benefits.

As mentioned earlier, a transaction period is needed to put everything in place and make Uganda

a wealthier and stable nation. Even so, as long as the changes are taking place in a sustainable

and efficient way, the time it takes doesn´t matter. Implementing an address system is a

sustainable and valuable investment. Resulting in improved delivery, collaboration

opportunities, confidence in businesses activities, and more international trade. Indirectly, it

will benefit sustainable development, economic growth, and improving international commerce

(Un.org, 2008). Indirect effects of the address system include increased entrepreneurship and

innovative creations via new accessibilities; new markets, new contacts, new info. Thereby,

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more competitive markets are created, which stimulates the business growth and development

in Uganda (Recklies, 2015). Because of the growing demand for international goods and

transportation of products, the importance of a fast and well-functioning working strategy is

high. Bad infrastructure forces wholesalers to large stocks of goods and queue (World Trade,

2004). The report by Wilson, Mann, and Otsuki (2004) emphasizes how improved

infrastructure, as an implementation of an address system, will improve the nation´s GDP

through more efficient service and operation.

Another thing which implementation of an address system would improve is the research sector.

Being able to collect, track, and organize data improves the accuracy of research, which helps

to figure out how to deal and improve present issues in the society of Uganda. Research can

guide and demonstrate which actions are sustainable and lead to beneficial improvements in the

country. Also, innovations and research lead to further research, developments, and innovations

which contributes to economic growth and sustainable improvements (European Central Bank,

2017). The combination of technological solutions and an address system enhance research

accuracy and accessibilities. ICT, according to Githiniji et al. (2014), contributes to a better

infrastructure as proper data banks, records, and improved tax revenue collection, resulting in

growth and development for Uganda. To add is the growth of E-commerce, online activities,

and online payments which are traceable, contribute to transparency, formalization, and they

are easier to tax (Beronius, 2018). Subsequently, the tax money can improve the public sector

and invest in sustainable actions which will reach the whole population and increase the

standards of living in Uganda. Not only individuals benefit from social improvements, but

organizations, entrepreneurs, institutions, and international business partners do as well.

Organizations these days need access to a good infrastructure to operate in an efficient way.

To summarize, implementing an address system is a beneficial and sustainable accomplishment

which directly or indirectly affects all market players, individuals, institutions, and trading

nations, leading to higher standards, increased GDP, and improved commerce for Uganda.

53

13. Conclusions and suggestions for future research

Africa is under construction (Torstensson, 2018); societies are affected and formed by the new

emerging technology. With no distance restrictions and more real-time actions, mobile

technology has proven its power; innovative features and applications are added to the phone

daily. With high penetration and adaptation rate, organizations and projects experience the

benefits of using mobile technology when launching new products and when reaching out to

their customers/users.

This thesis has been investigating how commerce is affected by an implementation of an

address system in Uganda. Because of the emerging e-commerce, online activity, and increased

use of mobile phones in Uganda, this thesis has paid a lot of attention to the technological

improvements which affect their commerce. To add is the fact that there are more mobile

accounts than bank accounts in the country (Hedlund, 2016), and Map Project solution to a

digital address formed the focus of this thesis.

Based on the 6 interviews conducted for this thesis it has been shown that Uganda faces a lot

of obstacles to optimize their economic growth and development. Their lack of structure, trust,

and public service in combination with corruption, inefficient regulations, and low education

level have led to insufficiencies. However, the situation is about to change through different

programs, modification, active organizations, and implementations.

A lot of daily activities are taking place through the mobile phone which people got access to

all the time. To add a new application to a device which already is penetrated across the country

increases the chances to reach out to the citizens. Results from this thesis point out how an

implementation of an address system would lead to efficiency, accuracy, opportunities,

availability, less delays/time savings, less confusion, decreased black market, increased tax

revenue, improved infrastructure, more optimal business environment, and improved

delivery/transportation possibilities, to mention some of the direct and indirect effects.

Resulting in both socio-economic growth and increased commerce.

Implementing an address system brings many benefits, but it cannot pull Uganda out of poverty

by itself. The interviewees highlighted how the government must change policies and

regulations in a supportive way for business activity, collaboration, and trade to bloom. A big

problem is also the lack of education and skill in the country which must be fixed. Increasing

the awareness of how the implementation can benefit Ugandans daily activities, making them

more productive and efficient, would also be valuable.

Some other areas/sectors which would benefit from the implementation according to findings

represented in this thesis are research and development, the bottom of the pyramid, international

investors, SMEs, taxi, logistic companies, service sector, and the formal market. To form a

successful, productive, efficient, and pleasant society everyone must be included and pull their

weight to help the society grow and develop in a legal and sustainable way.

A transition period is needed for adaptation and adjustments but based on the interviews and previous findings there are strong indications that the hypothesis is supported.

54

13.1. Suggestions for future research

The situation changes daily in Uganda; new technologies emerge, entrepreneurs enter markets,

innovations occur, governmental interactions change the rules of the game, etc. Ugandans

become more aware of their opportunities and learn how to benefit from available products.

Gathering information through interviews and qualitative data will always bring different

results because of the interviewees' own experiences. However, interviewing people from

different social classes in Uganda, as well as interviewing people who are employed in different

areas and in different industries can give a broader view of how an address system can change

the circumstances in the region. Also, Map Project’s technology and system are not

implemented yet, but after the launch, it would be interesting to see the adaption rate and if

people see the benefits it can bring. With time, new research topics regarding the subject will

be available. Also, making comparisons between before and after the launch of Map Project’s

application, regarding stimulation of Uganda’s commerce, can be a research topic.

55

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15. Appendences 15.1. Questions used as a base for interviews

1. What are Uganda’s biggest problems/obstacles regarding economic growth?

a. Communication/crime/behaviours/culture/knowledge/weather/internet

connection/ health/costs/governmental policies/accessibilities….

2. What do you think must be done to improve the situation in Uganda regarding

international connections?

a. Government/Trade Unions

b. Society

c. Economy

d. Security/safety

e. Education level

f. Religious/conservative

believe

3. How has the mobile phone improved daily activities for individuals and businesses?

i. Which applications and features are used most frequently?

ii. Would you say that people got a positive attitude towards… the mobile

phone?

…other technologies? …social changes? …globalization? …international trade?

MORE FOCUS ON MY TOPIC

4. How does people navigate, describe where things are located, and where they live?

a. How do they describe routes/directions for a non-local?

5. Do people order products from areas far away?

a. How do they contact that area? (e-mail, calling, internet, texting, regular mail,

mouth-to-mouth, go there themselves…)

b. How does the transportation work? Go through friends, pick up themselves, get

help from transportation/delivery -organisations …

c. Do locals use postal-offices, pick-up stations, or “home-address” when ordering

products?

6. Do Ugandans know much about international markets, products, etc.?

a. Do they demand them? → why/why not

7. What must be done for the poorer to become more productive and efficient?

i. Being on the Map? Make sure other market-players can find them.

ii. Proof of existence: ID, phone number, house address

iii. Participate in the global market

iv. Make it easier for all classes in the society to start businesses, get in

contact with markets, and have more opportunities/accesses?

8. Do you think that a well structed address-system is an important piece of the puzzle to

the Ugandans to access goods and services from more markets, which would help

sustainable development?

Would it decrease the black market and increase tax revenue?

9. What are the biggest obstacles and problems associated with establishing a national

address-system in Uganda?

a. Do Ugandans know how Maps work?

10. What pros and cons do you see along the way and after implying a mobile-based

application which provide a national address-system?

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a. Do you think the daily lives and economic activities would get more efficient?

(regarding time and money)

b. Would it improve the national infrastructure in a way which would boost trade?

11. According to some studies, mobile technology can help individuals find the products

they want to buy, make it possible to communicate with people/firms involved in the

purchase, provide payment solutions, and follow the shipment. To close the circle,

would a delivery to the right destination (exact address) help individuals and delivery

firms save time and money? -no pickup station or confusion to where to go

12. Many societies in Uganda have figured out their own way to handle things on local

bases. However, for their economic activity to reach now levels they need to expand

their markets. How and in what degree would addresses play a role, mobile phones,

better electricity connection, better streets/vehicles, and knowledge/education regarding

trade play a role.

Extra:

13. It is important to get everyone in the society involved and contributes to sustainable

development and economic growth… how should it be done?

14. Importance of communication; verbally, provide information, less confusion… how do

they get news and contact family/friends.