Home
/
RELIGION & LIBERTY ONLINE
/
Cell Phones, Microfinance, and Poverty
Cell Phones, Microfinance, and Poverty
Jan 16, 2026 8:54 PM

A recent report by the United Nations states that out of the world’s seven billion people, six billion have a mobile phone, but only 4.5 billion have a modern toilet. In India, there are almost 900 million cell phone users, but nearly 70 percent of the population doesn’t have access to “proper sanitation.” Jan Eliasson, the UN Deputy Secretary General has called this a “‘silent disaster’ that reflects the extreme poverty and huge inequalities in world today.”

Despite the lack of sanitation, most people are able to afford a mobile phone with a wide range available for [$15] or less and the price of calls reducing from [15c] a minute to [3c] a minute in the last decade.

This report focuses on the negative: the lack of sanitation for those in abject poverty, but it fails to note the extraordinary fact that people living in poverty have access to a device that was, until recently, a luxury item for wealthy Americans. Tim Worstall, a contributor on , addresses this report in a recent article:

It’s possible to be a little cynical about this phones versus thrones number though. Actual flush toilets aren’t in fact the problem. What is the provision of water to flush them and a sewage system to flush them into. Both of which are largely government provided. While mobile phone systems are largely pany provided. Whether you want to call it the lust for profit or the greater efficiency of the private sector, it won’t surprise the more right leaning of us that phones do have a greater market reach than toilets.

Andreas Widmer, president of The Carpenter’s Fund in Switzerland, has spoken a great deal about small businesses, aid, and investing in Africa. In an interview with PovertyCure, he explains causes of poverty:

Being poor has nothing to do with one or two dollars per day. Being poor has something to do with being excluded from networks of productivity and exchange, that means cell phones, internet, banks, financial systems, educational systems, trading systems to be allowed to trade, to have free trade, to have products from here that are produced here, to actually be allowed into other countries. If we’re not allowing that to happen, you can’t have entrepreneurs here grow panies properly

Cell phones are monplace in poverty-stricken countries because of the work of dedicated entrepreneurs. Cell phones have also given many people the means to create wealth for themselves and their families. Michael Joseph, the founder and former CEO of , the largest cell phone service provider in Kenya, gave an interview about foreign aid and the effect of mobile phone technology in Africa. He said:

Foreign aid changes people’s lives temporarily and that’s it, when it’s gone it’s gone. Mobile phones have made a huge impact in places like Kenya.

If you look at Africa in general, in the developing world in general, there is very little direct investment and very few jobs are created from the outside. People, particularly in Kenya, want to work, they need to work, they don’t just sit around and wait for people e and help them. People in Kenya tend to be quite industrious. The mobile phone has been almost perfect for that because it allows people now to create jobs for themselves. They don’t always have e to the city. There are now munications facilities throughout Kenya so it’s helping people create small businesses.

In Kenya 70 percent of our economy is in the informal sector. This means that a lot of the people are just doing small jobs, or are small-scale farmers, they’re just doing work on the side of the road, they sell things, they’re traders. And they’re all doing it because the mobile phone has allowed them to do it. I’ve said many times I think half the GDP growth in es because of the mobile phone revolution, not because of anything else. It has provided these people means munication.

Particularly things like money transfer, which we have been doing now for nearly two years, it has made a huge impact on people’s lives.

People no longer have to travel miles and miles to take money to people to buy goods and services. They can send the money by phone and the goods and services will arrive.

began a mobile banking service call M-PESA (which means “mobile money” in Swahili) a few years ago. This is a microfinancing service that allows anyone with a passport or national ID to transfer, withdraw, or deposit money. Users don’t need any kind of bank account, they simply need their mobile phones and then funds can easily be moved via SMS. This service has been tremendous for small businesses in Africa. It “has helped open opportunities for Kenyans and impacted many lives in many positive ways.M-PESA creates a feeling fort at the back of the mind of every Kenyan.”

Microfinancing has gone a long way to helping alleviate poverty. Muhammad Yunus, founder of the Grameen Bank, won the Nobel Peace Prize in 2006 for his work with microfinancing. Nobelprize.org summarizes Yunus’s work:

Banks in the traditional system have been reluctant to lend money to anyone unable to give some form or other of security. Grameen Bank, on the other hand, works on the assumption that even the poorest of the poor can manage their own financial affairs and development given suitable conditions. The instrument is microcredit: small long-term loans on easy terms.

When Grameen Bank was awarded the Peace Prize in 2006, more than seven million borrowers had been granted such loans. The average amount borrowed was 100 dollars. The repayment percentage was very high. Over 95 per cent of the loans went to women or groups of women. Experience showed that that ensured the best security for the bank and the greatest beneficial effect for the borrowers’ families.

Yunus began his work in Bangladesh in 1983; he was “fueled by the belief that credit is a fundamental human right.” He says that he “saw how people suffered for tiny little money, and they had to go to the moneylender to borrow the money and get started with their life and whatever activities they are involved with.” Now microfinancing occurs, not just in Bangledash through Grameen Bank, but all over the world. Services like M-PESA and the ease of buying and using cell phones has made it even easier for people to utilize microfinancing, start new businesses, and full themselves out of poverty. For a more detailed explanation of microfinancing, check out PovertyCure’s Microfinance page.

It is certainly a terrible thing that there are almost three billion people in the world living without proper sanitation. Nevertheless, that does not mean it’s a bad thing that all but one billion people have a working cell phone. Hard working and creative individuals are bettering the lives of millions. Microfinancing coupled with mobile phone technology is providing countless opportunities for people living in poverty to better themselves and provide for their families.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Occupy Wall St. Embraces The Hollow Men
Acton Research Fellow and Director of Media Michael Miller warned of the dangers of over-managed capitalism.Washington’s foolhardy manipulation of the housing market brought our economy to its knees in 2008, but it seemed the gut-wrenching panic hadn’t had taught us anything. The recovery tactics weren’t fundamentally any different from financial policy in the mid-2000s, but the establishment couldn’t conceive of doing things any differently. Said Miller: In The Wealth of Nations, Adam Smith warned, “People of the same trade seldom...
November 15 Countdown: Acton University
Tomorrow is a big day at the Acton Institute. November 15th marks the launch of two programs, 2012 Acton University (AU) and AU Online, a new internet-based educational resource for exploring the intellectual foundations of a free and virtuous society. For the 2012 Acton University conference (June 12-15 in Grand Rapids), we’ve overhauled the registration process to make it more user-friendly and responsive, and we look forward to hearing what you think. We are also happy to present AU Online....
Distributism’s Fixed, False Beliefs
Picking up ment thread from this post. pauldanon says: “Because distributism is people-centred, things like medicine would be a priority. There’d need to be infrastructure for that, but nothing like the grotesque infrastructure we presently have for shipping frivolous imported goods around the country.” I know it’s futile to point out obvious things to a distributist. The fixed, false beliefs undergirding distributism are impervious to reason and experience. But let me try one more time, perhaps for the benefit of...
Benedict XVI: Giving of Talent and Resources in Crisis Economy
Pope Benedict XVI delivered inspiring remarks at the European Year of Volunteering (EYV) summit held in Rome this past Nov. 10-11. He explained why gratuitous giving of personal talent and resources is so important in restoring a healthy vocational perspective to everyday business. As Benedict knows all too well, a culture of Christian charitable giving is not at its height in Ol’ Europe, where the modern Welfare State and Keynesian economics have played such a dominant role the past 70...
Acton University Registration Opens, Plus AU Online Launches
Acton Institute is pleased to announce both the opening of registration for the 2012 Acton University (AU), and the launch of AU Online, a new internet-based educational resource for exploring the intellectual foundations of a free and virtuous society. For four days each June, the Acton Institute convenes an ecumenical conference of pastors, seminarians, educators, non-profit managers, business people and philanthropists from more than 50 countries in Grand Rapids, Michigan. Here, 700 people of faith gather to integrate and better...
The King James Bible and its Unmatched Influence
I remember in a seminary class a student ripped into all the flaws and translation mistakes that mark the Authorized 1611 version of the King James Bible. The professor, of course well aware of any flaws in the translation, retorted that it was good enough for John Wesley and the rest of the English speaking world for well over three centuries. The professor made the simple point that it was the standard English translation for so long and there is...
Barnett on Sirico and Rediscovering Political Economy
Rediscovering Political Economy is the title of a book recently published by Lexington Books, edited by Joseph Postell and Bradley C.S. Watson, and including an essay by Fr. Robert Sirico. The Spring 2012 issue the Journal of Markets & Morality will feature a review of the book by Tim Barnett, an associate professor of political science at Jacksonville State University. Since that’s too long to wait for Prof. Barnett’s astute observations, we post here an edited and abridged version of...
Pizza qua Vegetable: Acton Finds the Moral Dimension
Well, that wasn’t a serious title: After an hour of reflection, I am forced to admit that pizza qua pizza is a morally neutral proposition. We might have thought it was politically neutral too, until Congress decided this week that pizza sauce still counts as a serving of vegetables in public school lunch lines. The brouhaha over pizza’s nutritional status reminds one of the Reagan-era attempt to classify ketchup as a vegetable. The department of agriculture was tasked with cutting...
Preview: R&L Interviews Dolphus Weary
In the ing Fall 2011 issue of Religion & Liberty, we interviewed Dolphus Weary. His life experience and ministry work offers a unique perspective on the issue of poverty and economic development. His story and witness is powerful. Some of the ing interview is previewed below. Dolphus Weary grew up in segregated Mississippi and then moved to California to attend school in 1967. He is one of the first black graduates of Los Angeles Baptist College. He returned to Mississippi...
Abraham Kuyper, Adam, and Doctor Dolittle
This week’s Acton Commentary, “Work, the Curse, and Common Grace,” I examine the doctrine mon grace in the context of our relationship with animals. In particular I use some insights from Abraham Kuyper as appear in the ing translation of his work, Wisdom & Wonder: Common Grace in Science & Art. (Pre-orders for Wisdom & Wonder are shipping out this week, so you can still be among the first to receive a hardcopy. We’ll be launching the book at the...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved