Featured
Category

Military Base Expansion: an End to Japan Peace State

Comments (0) Africa, Featured

A Japanese military base in Djibouti, on the East African coast, is being expanded as part of a new militarized movement happening in Japan and as three Japanese government sources have revealed, to counter Chinese influence on the continent.

Since 2011, a Japanese Self Defense Force contingent has occupied a 12 hectare site in Djibouti and operated a maritime patrol aircraft from the base. Originally described as a ‘facility’ rather than a military base, United Press International (UPI) reports the area houses air, land and sea-based forces as part of an active, ongoing anti-piracy mission in the Gulf of Aden. According to UPI this offers Japan increased cooperation with allied partners and further projects military power.

A Japanese Defense Ministry spokesman said that in addition to the land Japan had borrowed, it was considering leasing additional land to the east. Although Japan relies heavily on imports of oil and gas from the Middle East, the UPI article claims Japan’s expansion represents an agenda beyond solely protecting its economic security. According to Reuters, a Japanese government source told the agency that China’s increasing presence was the reason for Japan’s rising involvement.

Chinese Economic Presence in Africa

Chinese investment in African Nation’s development is increasing exponentially. In December of 2015, China pledged $60 billion as part of a loan and aid package to Africa to help with development projects, to improve agriculture and reduce poverty. According to the Wharton Africa Business Forum held in late 2015, Chinese economic presence on the continent has continued to skyrocket, from $7 billion in 2008 to $26 billion in 2013.

According to Reuters, China is seeking ties with Africa to gain access to natural resources and find new markets. However, Japan has also pledged to increase its support with $30 billion towards infrastructure, healthcare and education in Africa. China is putting money into new infrastructure and raising its presence in Djibouti, said the Reuters source. “It is necessary for Japan gain more influence.”

Expansion of Japan’s Djibouti Base

Strategically located by the Red Sea, and cornered by Ethiopia, Eritrea and Somalia, Djibouti also hosts US, and French Bases. China started construction on a military base in the country at the beginning of 2016. The base is the first overseas military facility and coastal logistics base that will provide supplies to naval vessels taking part in peacekeeping and humanitarian missions, reports Reauters.

Japan’s expansion of their base would include C-130 transport aircraft, Bushmaster armored vehicles and extra personnel, Reuters source claimed. The extra leased land would be smaller than the existing base and would cost roughly $1 million per year. The source claimed Tokyo would justify the expansion by pointing to the need to have an aircraft in the area to evacuate Japanese citizens from troubled areas. According to UPI, however they point to an increasing militarization of Japan.

Militarization of Japan

Long been described as a ‘peace state’ after a constitution imposed on the country by the United States after World War II, Japan may be leaning once again towards an era of military action.

As part of the WWII constitution, Japan’s constitution stated the country would forever ‘renounce… the threat or use of force to settle international disputes’ and that ‘land, sea, and air forces, as well as other war potential, will never be maintained’.

However, a controversial new legislation backed by Prime Minister Shinzo Abe’s government announced in March of last year, stated Japanese forces could engage in collective self-defense and come to the aid of an ally under attack. The legislation was passed against the wishes of the majority of polled Japanese citizens who opposed it and in direct violation of the constitution.

Stepping back from seven decades of state pacifism, Prime Minister Abe is seeking to give Japan’s SDF a greater role in regional and global affairs. Djibouti’s military base may be just the beginning of Japan’s military operations.

Read more

South Africa Leading the way in Renewable Energy

Comments (0) Environment, Featured

South Africa’s independent energy program is a leading example of a country utilizing its natural resources for energy. With long lasting days of sunshine, falling equipment costs, and a government confident in reducing its C02 emission, the African nation is leading the way in sustainable renewable energy on the continent.

At the ‘Africa Renewable Energy Forum’ held last year in November in Marrakech, Morocco, energy ministers from all African countries, investors, financers, and technology providers discussed renewable energy plans, climate change targets and the development, enhancement, and protection of the continent’s natural resources. At the same time, South Africa’s Department of Energy (DOE) and Independent Power Producer (IPP) discussed plans to export their successful independent renewable energy plan to 11 other countries in Africa.

South Africa’s REIPPPP

South Africa’s Renewable Energy Independent Power Producer’s Procurement Programme (REIPPPP) has been successful in demonstrating that renewable energy can be delivered at lower cost, in energy terms, than new build fossil fuel options, said Sandra Coetzee, Head of Strategy at the Department of Energy’s IPP Office.

Launched in 2011, the REIPPPP has attracted local and international investors with commitments of 194 billion rand (USD$14 billion) making South Africa 3rd and 4th most attractive renewable energy investment destination among emerging markets by the Climate Scope Index. By the end of 2015, 6376 MW of power was procured, of which 2 gigawatts (GW) was connected to the national grid. This is equivalent to half of the capacity of an additional coal powered station, delivered in only a third of the time, Coetzee said.

Supporting Renewable Energy

Solar and wind power account for just 2 percent of South Africa’s energy needs, but just two or three years ago, there was 0 percent of renewables in the country, said Tobias Bischof-Niemz, Head of Energy at the Council for Scientific and Industrial Research (CSIR). South Africa has the capacity to produce 45,000 MW of power, the largest on the continent, but greater demand has led to ongoing blackouts and an energy crisis in the emerging country. In response, the government has supported nearly 100 renewable energy projects and a plan to increase renewable energy to 21 percent of the national energy by 2030. The government also plans to reduce fossil fuel dependency from 86.5 percent to 57 percent.

Renewable energy cost is 40 percent cheaper than coal, Bischof-Niemz said, and South Africa can go for a 70% renewable energy share by 2040 at the lowest cost. The country has plans to increase electricity production and maximize renewable energy sources, such as wind, hydroelectric and solar power resources. The National Development Plan has stated that by 2030 at least 95 percent of South Africa’s population will have access to either off-grid or on-grid electricity.

654 million people in Africa have no access to power

Although South Africa is having temporary respite from load shedding, that is, power outages due to over demand, some countries in the region are experiencing 12 to 16 hours per day with no electricity, said Scott Brodsky, Partner and energy lawyer at international law firm Macfarlanes, who are advising clients across Sub-Saharan Africa on aspects of renewable and other energy projects. There are still some 654 million people on the continent who still have no access to power, said Coetzee. Meaning enormous potential for energy investment over the African continent.

According to a new report by Bloomberg New Energy Finance (BNEF), entitled ‘Today’s Potential, Tomorrow’s Energy’ unsubdsidized solar energy is beginning to outcompete coal and gas. New solar projects are beginning to cost less to build and in the developing world, solar is the most cost effective source of energy, the report shows. Although an overall shift to renewable energy can be more expensive in wealthier countries, where solar must compete with existing billion dollar coal and gas plants, emerging markets, where new electricity capacity is being added as quickly as possible, clean energy will beat any other technology in most of the world, said BNEF Chairman Michael Liebreich.

Although there is positive news for clean energy in developing nations and South Africa’s REIPPPP could spread across the African continent, it seems renewable energy alone will not solve South Africa’s energy crisis. The country still has plans to build two new coal plants and even a nuclear energy plant, reports CNN.

Read more

Alabbar’s plan to conquer e-commerce

Comments (0) Featured, Middle East

A new online shopping platform created in the United Arab Emirates is set to dominate the industry in the Middle East and possibly the world. Noon.com, which was announced early November, is an online retailer boasting over 20 million products and same-day delivery. Created by Emirati billionaire and businessman Mohamed Alabbar, the site will be launched worldwide in January, 2017.

Stocking millions of products ranging from fashion to electronics, food to cars, the site will be ten times bigger than the region’s current ecommerce site, Souq.com and will stock over 5 million more products than Dubai’s biggest malls. Starting with 20 million products, the plan is to get to 100 million, Alabbar explained in an interview with Arabian Business. Initially the site will sell popular consumer items, he explained, but will eventually expand to sell niche items too.

The region is ripe for an ecommerce revolution: Alabbar

With $1 billion in financial backing, half from Saudi Arabia’s Public Investment Fund and half from Alabbar himself and a group of Gulf Cooperation Council investors, the ecommerce site will operate from and focus on the UAE and Saudi Arabia before branching out. Noon’s head office will be located in Riyadh, Saudi Arabia

As a region with 50 percent of people under the age of 25, the UAE and Saudi Arabia have extremely high internet and smartphone usage as well as high per capita income Alabbar explained. However, ecommerce accounts for only 2 percent of total retail sales in the region, a total of $3 billion a year.

People in the Gulf nations are still buying online from Amazon US and Amazon UK even though they have to wait a long time for delivery, Alabbar said. Countries like the USA, China and the UK have an ecommerce penetration of 15 to 18 percent of retail, but it is negligible in the Middle East. “The region is all but ripe for an e-commerce revolution,” Alibbar said. “Local giants have emerged in ecommerce around the world, like Alibaba in China. Why should it be any different in the Middle East?”

Ecommerce market to be worth $70 billion by 2025

By 2025 the ecommerce market is expected to be worth a whopping $70 billion a year, and Alabbar aims to take a sizeable chunk of it. Noon is being built with an eventual goal of an initial public offering in five to seven years Alabbar said. Immediate goals, however, include growing online sales in the region from 2 percent to 15 percent. A financial goal from $3 billion to $70 billion within a decade, taking up much of the ecommerce market.

“Any vision to change the world necessarily has to be big. A quantum leap cannot be small,” Alabbar said. An obvious comparison to Noon is Alibaba. When Alibaba was launched, Amazon was already a large public company, Alabbar explained. But that didn’t stop CEO Jack Ma from dreaming big. Today they are the largest ecommerce company in the world, and Amazon is almost non-existent in China, Alabbar said.

End to End Ecommerce Retailer

Noon plans on being an all-encompassing retail experience. From its website to an app, to delivery system and pay platform, it is all the same company from start to finish. Noon’s CEO and former country manager for Souq, Fodhil Benturquia said Noon’s edge over competition lay in its technological advances. “Our customer experience will be driven by state-of-the-art technology that will power everything from product discovery to purchase and delivery,” Benturquia said.

As well as creating its very own paying platform, Noon Pay, the company is also currently building the world’s largest warehouse adjacent to Dubai’s Al Maktoum International airport to store its products. The warehouse, which will be the size of 60 football fields will be one of many similar centers across Saudi Arabia and later across the entire region. Large storage centers mean same-day delivery is possible and this will be achieved via an in-house system called Noon Transportation and part-owned delivery service, Aramex. Noon is going to change the online shopping landscape for the Middle East customer, Benturquia said.

Read more

The collapse of oil prices is forcing the UAE to reconsider a long-standing taboo on taxation

Comments (0) Featured, Middle East

The past seven months have seen global oil prices drop sharply leading to significant revenue shortfalls in many energy exporting nations in the Middle East. Desperate to diversify revenue, the Gulf states will introduce direct taxation on its citizens for the first time.

According to Younis Haji Al Khouri, the United Arab Emirates Finance Minister Undersecretary, taxation could generate billions of dollars in revenue for the oil-dependent nation. A draft law for corporate taxation was approved by the UAE cabinet at the start of the year and plans to introduce value-added tax (VAT) by 2018 are underway. VAT would include heavy fees on luxury items such as cigarettes and alcohol, Al Khouri explained, but certain sectors such as healthcare, education, social services and 94 different food items would be exempt.

“There was a study conducted in 2014 that showed that the [revenues] collected from the implementation of value-added tax for the UAE are between AED10 billion (USD$27 billion) to AED12 billion (USD$32 billion)” Al Khouri said.

Falling oil prices

Oil prices reached an all-time low at the start of the year with benchmark Brent crude oil prices as low as just $28 per barrel and up to only $45.4 per barrel half way through November. In comparison, Brent crude went for more than $115, per barrel in June of 2014, reported Gulf News.

Largely to blame for the decrease in oil prices are surging oil production in the United States, a higher US dollar, and weak economic growth in energy importing countries, reports the BBC. However, the war in Syria and Iraq has also had a part to play. Militant group ISIS has been capturing oil wells and purportedly undercutting market prices by selling oil on the black market at a significant discount. According to the BBC, ISIS is making around $3 million a day selling oil for around $30 – $60 per barrel.

This has left the UAE and other oil-producing countries to deal with lower prices for their output. While the UAE government has taken some steps to remedy the situation, such as cutting billions of dollars’ worth of petrol subsidies, according to Deutsche Bank and IMF, the nation would still need the price of oil barrels to rise to at least $81 per barrel to balance its budget.

Introducing Tax in the Gulf nations

Introducing tax may be the answer to the UAE’s revenue woes. Although taxation has long been a taboo subject in the Gulf states, the current price of oil has caused many countries in the Gulf Cooperation Council (GCC) to rethink their stance. Taxation could be an alternative source of income for countries hoping to move their economies away from a dependence on oil and gas.

A research and risk analyst at Moody’s Investor’s Service Mathias Angonin, said the UAE has a limited amount of ways to improve revenue. “The UAE introduced tough measures quickly, including the fuel subsidy reform and the reduction in capital expenditures,” Angonin said. “But the list of low-hanging fruits to raise revenue or reduce expenditures is getting shorter and shorter. The authorities are focusing on medium-term measures such as the VAT introduction in 2018 and 2019 and new forms of taxation.”

Moving Economies Away from a Dependence on Oil

Although it has long been a steady source of income, the UAE is not entirely dependent on oil and gas. The country has a thriving maritime port and is a global aviation hub. According to Gulf News, UAE is one of the most diversified economies in the region. Trade and logistics, services, retail, tourism and aviation are among the key drivers of non-oil growth, explains Shady Shaher Al Borno, Head of Macro Strategy Research, Global Markets and Treasury, Emirates NBD.

“We expect the UAE economy to grow by 3.4 per cent in 2017,” says Al Borno. “In the medium run, we expect Expo 2020 to have a positive impact on growth dynamics of the UAE as a whole as the non-oil sector will benefit from the flow of projects for the construction of facilities to host the 2020 event.”

Dubai’s staging of the next universal technological exposition, entitled ‘Connecting Minds, Creating the Future’ and based on themes such as sustainability, mobility and opportunity, is expected to add an estimated 4.5 percentage points to GDP growth in the UAE and an extra $10 billion of private sector cash injected into the GCC, according to a report by Qatar National Bank. The event will also create thousands of jobs in construction, planning and tourism.

Read more

The IMF predicts considerably growth in the Ivory Coast’s economy

Comments (0) Economy, Featured

The Ivory Coast is West Africa’s largest, French-speaking economy, and its growth looks set to continue, as the IMF predicts a 7.4% increase in the nation’s GDP over the next 3 years. The nation’s government is even more confident, predicting greater growth over the next two years than IMF figures, but either way it shows the increase in stability within the nation since President Alassane Ouattara came to power in 2011.

Greater stability, greater growth

Since Alassane Ouattara officially took office in 2011, the Ivory Coast has been in a period of sustained political stability that has led to marked economic growth. Ouattara has invested heavily in Ivorian infrastructure, and targeted outside investment to help the country continue its economic development. A reduction in red tape has allowed businesses to flourish, and staple crops such as cocoa have yielded even greater returns, with the Ivory Coast now responsible for around 45% of the world’s cocoa supply.

The IMF said that the West African nation’s GDP expanded by 8.6% in 2015, and 8.5% this year. The continued growth in 2016 comes in spite of poor weather that limited the nation’s cocoa crops, after a record haul of 1.8 million tons in the 2014-2015 season.

With this continued economic expansion, the IMF has predicted that between 2017 and 2020, the Ivory Coast will average 7.4% growth. However, Ouattara’s government is even more optimistic as they state that growth for 2016 will actually be 9%, and not the 8.5% predicted as an end of year figure by the IMF. Similarly, the Ivorian government claim that there will be 9% expansion in GDP in 2017; a figure that is 1% higher than IMF projections.

The construction of new roads and dams has also helped bolster the economy, and a new constitution aims to ensure that the armed conflicts of the past do not return to unsettle this new political and economic stability.

Investment for the future

While investment in infrastructure has been a key part to increasing crops and the ability of domestic businesses to flourish, attracting outside investment is also integral to prolonged growth. The Ivory Coast is looking to maintain its traditionally strong areas of production, such as its cocoa exports, while creating new sources of revenue and development.

As such, President Ouattara has targeted foreign investors to help fund his 5 year plan for growth within the country. In May of this year, the Ivory Coast’s government secured more than $15 billion in support from external investors and donors. With the new constitution passed into law, the government hopes that foreign direct investment (FDI) flows will increase, as concerns of security will continue to diminish.

The amount of pledges announced in May will offer great encouragement to both the government and the people of the Ivory Coast. When targets were set for a Paris meeting that aimed to attract FDI’s, the government said it hoped to raise $8.8 billion, so with over $15 billion actually achieved, it indicates a huge step forward for the economy. Ouattara’s plan was to put around $60 billion, in total, into projects that would run from 2016 to 2020. After receiving almost double its target from foreign investors, Ivory Coast’s government said that this success showed the “full support of the international community”.

In September of this year, Ouattara went to New York to make a speech at the U.S. Africa Business Forum, as he looked to continue his drive for foreign finances. During the speech, the President stated that the Ivory Coast has no preference over whether investment comes from public or private sources.

In addition, he made it clear that all areas of the world were valued equally in terms of how attractive their investment was to the Ivorian government, and added that, “We just want the maximum amount of investment possible.”

As foreign investors continue to show interest, Ouattara’s government will hope that they can maintain the growth that the country has shown, since the post 2010 election conflicts ended. Moreover, if the government’s figures are accurate, then the Ivory Coast will look to outperform the, already positive, predictions of growth that the IMF has announced. Potential investors will be watching with interest as the 2016-2020 plans develop.

Read more

Shuffling the Deck: Saudi Arabia favors new minds over lifetime politicians

Comments (0) Featured, Middle East, Politics

Amidst a global re-shuffling of political office and norms, Saudi Arabia has appointed a new Minister of Finance. Mohammed Al-Jadaan has replaced Ibrahim Al-Assaf, who worked within the ministry for the previous two decades before being appointed its top position. Al-Jadaan is seen as a breath of fresh air for the Saudi Arabian economy, bringing with him an outsider’s view, free from the restrainst associated with career politicians. While Al-Jadaan has vast experience with trade policies and restrictions from his time at Capital Markets Authority, this will be his first governmental ministry post.

Re-gilding of the government

A royal decree announcing the appointment of Al-Jadaan was issued earlier this month by King Salman, the leader of Saudia Arabia. Al-Assaf has been appointed Minister of State and has been made a Member of the Cabinet, moving his expertise from finance to a broader scope of affairs. Al-Jadaan was integrated in the 2015 opening of the Saudi market to foreign investments and is expected to ease existing barriers in an effort to attract more overseas capital. According to Jason Tuvey, Middle East economist at Capital Economics, Al-Jadaan “already has policymaking experience having overseen the opening up of the Saudi Tadawul to foreign investors over the past couple of years,” which is expected to positively influence his role as Minister of Finance.

Al-Jadaan studied both Islamic law and Islamic economy at Imam Mohammed Ibn Saud Islamic University in Riyadh. Before his appointment as the chairman of Capital Markets Authority, Al-Jadaan was a founding partner of the Al-Jadaan and Partners Law Firm. He was listed in Chambers and Partners as a leading lawyer in corporate/commercial law and banking/finance practice for a decade and is expected to bring this wealth of real-world experience into the Ministry of Finance.

Right Hand Man

King Salman has already been seen as a mover and a shaker, mixing up the tenured ministry heads with younger men from a variety of backgrounds. He has notably centralised power, and is making an effort to ensure those around him will remain loyal and share his vision for Saudia Arabia. Al-Jadaan is expected to assist the new King in his desire to diversify the Kingdom’s economy from largely hydrocarbon based to other industries such as financial services. His appointment coincides with first ever sovereign bond sale, an order reaching $67billion. Many are lauding this as a sign of the freer economy to come, but experts caution against overexuberance, pointing to the Kingdom’s recent history of austerity as a better indicator of what lies ahead.

A diversified economy is, of course, the long term goal, but Al-Jadaan has inherited more immediately pressing matters, chiefly alleviating current market conditions. Saudi Arabia has been running a deficit due to the low price of oil. The International Monetary Fund (IMF) predicts that without a significant increase in the price of oil matched with level demand, the current budget deficit will continue to grow and will exhaust foreign exchange reserves as early as 2020. This would be disastrous for Saudi Arabia.

The oil price crisis is the umbrella underwhich Al-Jadaan will operate. He will be a key player in on-going discussion with Iran as other OPEC members continue to lobby for a reduction in oil exports from the Kingdom. Iran and Saudi Arabia do not currently have private negotiations on this or any other topic, but if Al-Jadaan is able to reopen such talks, his aim will be to get as many concessions from Iran as possible.

Another piece in the puzzle of 2016

Al-Jadaan’s appointment is but one among many injections of new men into global governments. As the world shifts away from the previous decades of western democratic hegemony into uncharted territory, it will fall upon men like Al-Jadaan to find a new balance.

Read more

Africa looks set to for a revolution in technological innovation

Comments (0) Africa, Economy, Featured, Technology

Africa is changing, and technology is the catalyst for the unprecedented changes that are occurring continent wide. Although there are still large areas of the continent that lag behind, the levels of tech access found in, Europe and the USA, change is happening at an incredible rate. These changes are fueled by Africa’s innovators, who are helping alter how the rest of the world sees the globe’s second largest continent.

The rapid growth of technology

The growth of cellphones and the internet in Africa has happened so rapidly that access to personally owned technology has often happened before nations have built more routine infrastructure. Before many nations have even constructed reliable, national electricity supplies, individuals have access to cellphones that are fueling innovation, and changing people’s outlooks.

The cellphone company Ericsson, says that by 2019 there will be 930 million cellphones in Africa. The majority of Africa’s population is under 30, and the lack of infrastructure in many countries has proved to be a spur for creative solutions to everyday problems. Cellphone money transfer systems are one of Africa’s most popular technological services, in part fueled by the lack of access to banks that many people experience. This technology has now moved to the west, showing an intriguing reversal of the flow of new inventions. The developed world is now importing some of the developing world’s ideas and creations.

As broadband penetration expands, the opportunity for further innovation will become even greater. Access to regular cellphones is gradually moving towards access to smartphones. Around 20% of the continent currently has access to the internet, but this is expected to treble over the next 5 years. According to The Guardian, cellphone technology will account for 8% of Africa’s GDP by 2020, a figure that is more than double what it is anywhere else in the world.

African created apps now cover a broad range of areas, from providing question and answer services with registered doctors, to allowing farmers market figures to ensure they maximize their profits. A young generation of Africans across the continent have bypassed traditional technologies, such as landline phones and branch banking, and simply moved straight into a world of conducting everything via their cellphone.

Confronting the obstacles

Despite the swift growth in personal technology in Africa, there are still clearly issues around more routine forms of modernity that need to be overcome. For instance, in sub-Saharan Africa only around a third of people have access to grid electricity.

Cellphones are one thing, but for technology to become a genuine driving force – against poverty – there does need to be a minimum level of infrastructure.

Akinwumi Adesina, President of the African Development Bank, said, “If you can’t have electricity you can’t drive any industrial development… electricity drives everything, so until we fix that problem Africa faces huge challenges.”

This is an issue that organizations like the African Development Bank are addressing, with the ADB investing $150 billion over the next 10 years in order to try and provide connectivity to a further 130 million people.

Several nations have invested heavily in technology, in order to draw investment from major, foreign corporations, and also to provide openings for domestic talent to shine. Kenya in particular has looked to announce itself as a global leader in nurturing tech innovation, including the construction of an entire tech city (Konza) to create jobs, support start-ups and attract foreign investment.

Continuing to adapt

There are areas in which Africa has incorporated new technology very quickly, with e-commerce being one of the most notable success stories. Nigeria’s Jumia Group is Africa’s first tech “unicorn”, meaning that the company is valued at $1 billion.

For other companies to have such success, and for Africa’s tech entrepreneurs to feel empowered, there needs to be cross continental support from governments. There are signs that several governments intend to help support tech innovation, and the hope has to be that as this brings increased prosperity to individual nations, so their neighbors will follow suit.

Mteto Nyati, chief executive of MTN (South Africa’s second largest telecommunications company), says that the continent needs “partnerships between governments and mobile operators” in order to ensure that future technology, such as 5G, is widely available.

Aside from the money that Kenya’s government has invested in technological infrastructure; there are other governments showing determined efforts to embrace the opportunities that technology offers. Rwanda aims to become Africa’s first “cashless society” in terms of the public sector, and it has spent 15 years working to digitize much of society.

What is most exciting in such a fast changing continent is that this leap forward in tech innovation can help solve long term difficulties faced by normal people. Technology commentator, Ory Okolloh, states that many African startups now are “thinking about innovative ways to solve real problems in the market.” The next generation of African entrepreneurs looks set to benefit from a continent that has truly embraced technology.

Read more

The MIT graduate who is building Africa’s first STEM school

Comments (0) Africa, Education, Featured

Obinna Ukwuani was given a great advantage in life, when his parents moved from Nigeria to the USA, and thus gave him access to an excellent education. Ukwuani made the most of his opportunities, and recently graduated from Boston’s prestigious MIT. However, rather than take a comfortable job in the US, he is looking to create a STEM school in Nigeria that will offer others the chances that he had.

From STEM school to STEM school

Obinna Ukwuani grew up in Washington D.C., where his parents had moved in order to give their son access to as good an education as they could find. Although the family lived in the USA, his parents were determined that a young Obinna would not lose touch with his heritage, and as such they sent him back to Nigeria for his 8th and 9th grade years of school. A successful education and a passion for technology saw Ukwuani gain a place at the prestigious MIT in Boston.

However, his previous visits to Nigeria were not something he wished to forget, so he returned there during his freshman year at college. It was on this trip that Ukwuani saw how little opportunity within STEM fields there was for most Nigerian students.

Recalling his trip, he said, “It was shocking to see how far behind me they were…I knew I wanted to improve things in Nigeria.”

Ukwuani took immediate action, and in 2012 he launched a robotics summer school in Lagos, Nigeria that ran for 3 years. The school taught 113 students from 17 Nigerian states, how to code and construct robots, over the course of 5 weeks in the summer. The school hired MIT students to provide guidance and had funding from Shell. Ukwuani saw an immediate impact on the students who attended, explaining, “In 3 days, kids who’d never seen a computer were writing code.”

Makers Academy

The success of his summer school inspired Ukwuani to move into STEM education fulltime, once he graduated. While it would have been easy to take a well-paid job in the U.S, Ukwuani is clearly passionate about creating change within his parents’ homeland. After creating a business plan, the MIT graduate spent 5 months finding investors who would back his dream of creating a fulltime STEM school in Nigeria. His search was successful, and with backing in place, he is now in the process of creating his school, Makers Academy, in Ubuja, Nigeria.

Ukwuani expects the school to open in 2018 or 2019, and it will play host to 600 students who have shown an aptitude and interest in STEM fields. While some schools in Nigeria teach these subjects, no school will contain the cutting edge technology, such as 3D printers, that Makers Academy will have.

As a recession hits Nigeria, Ukwuani feels that changing education could be a long-term benefit for the whole country, saying, “Now more than ever we need more options…and we don’t have them.”

It may well be that Makers Academy is the start to ensuring that those options, are something that Nigeria’s future generations will not have.

Read more

The African school girls who are coding their way to new opportunities

Comments (0) Africa, Featured, Technology

In the fields of science, technology, engineering and mathematics (STEM), women are widely underrepresented in both further education and professional roles. This issue is even more pronounced in developing nations, where an increase in female representation, within these areas, could help break cycles of poverty, and offer the next generation role models that help foster long-term change.

However, there are projects that are already addressing this, and in several African countries high-school girls are learning coding skills that could help change both their futures and those of women across developing nations.

Coding for a new tomorrow

In a world in which social media and smartphone apps are ubiquitous aspects of the developed world, coding has become a huge area of employment and invention. In the developing world, cellphone technology is widespread, and the proliferation of smartphone technology is spreading.

However, for girls and women in countries like Kenya, long standing ideas around gender combine with widespread poverty to make the internet age inaccessible for many of them. In the slums of Kenya’s capital, Nairobi, only 20% of women have internet access, compared with 57% of men.

This situation not only holds back women, but the country at large, as STEM employment opportunities spread best when there is a large base of potential talent. The current imbalance may well begin to change, as several organizations are now helping to provide tech education to girls in Kenya, Uganda and Senegal.

The charity, Theirworld, is running “Code clubs” across these three nations, in which schoolgirls can learn a variety of skills within STEM fields, something that can help alter ideas about education, while providing the girls in question with new skillsets.

Theirworld launched the first code club in conjunction with Kano Code Academy and Africa Gathering, and they had funding from Facebook. Theirworld President, Sarah Brown, explained, “With a safe space to learn and play, a mentor to inspire, and access to technology…we can increase learning opportunities, and empower girls to fulfill their potential.”

Before International Women’s Day, Theirworld launched a social media campaign with the title #RewritingTheCode, which aimed to raise awareness about the problems facing girls around the world within STEM fields and education at large.

Even more promisingly, this is not the only organization that has looked to provide females with educational support within Africa, and there are already success stories that show how beneficial such provisions could become.

From Kenya to beyond

In Kenya, one group of schoolgirls took advantage of another program supporting girls in STEM fields, and found themselves as finalists in a global competition for schoolgirls in technology. Kenyan cellphone company, Safaricom, operates a scheme that provides technology education to girls, along with access to mentors who help them build upon their new skills.

Harriet Karanja is only 16 years old, but with support from Safaricom’s scheme, she created an app with friends called M-Safiri, which means “traveler” in Swahili. The app allows users to buy bus tickets remotely, and then get GPS guidance to the bus-stop of your choice, without having to wait on the street.

Karanja and her friends made the finals of a global competition, held in San-Francisco, a huge achievement for them, but also a glowing endorsement of the project.

While it is admirable that charities such as Theirworld are helping females access the STEM world in Africa, it is even more encouraging that domestic tech giants like Safaricom are recognizing the need for change, and the wealth of talent that they can help foster. The American company, Intel, has also funded mentor schemes in Kenya, and Kenya’s already blossoming tech scene looks set to finally make use of all of its young talents, rather than losing 50% of its potential due to gender discrimination.

If Kenya can lead the way, then the projects in Uganda and Senegal can surely follow in their success, and bodies like Theirworld already plan on expanding into another 3 African nations by the end of the year. Marieme Jamme, Co-Founder of Africa Gathering, said “Africa is crying out for young women with STEM skills and knowledge.” Hopefully the changes occurring will ensure that what Africa is crying out for, will soon be something that Africa gets.

Read more

Andrew Mupuya is an award winning entrepreneur, and he’s not yet 25

Comments (0) Africa, Featured, Leaders

When Forbes magazine lists you as one of the 30 most promising young entrepreneurs in Africa then you must be doing something right. In the case of Andrew Mupuya, he was named one of Forbes’ “30 under 30” in both 2013 and 2016. The list highlights entrepreneurs under the age of 30 who are on the way to achieving great things within their chosen industries. Remarkably, Mupuya has been in business for 8 years, and yet is still only 24 years old!

From humble beginnings

Andrew Mupuya was born, in the Manafwa district of eastern Uganda, to a large, extended family with very little income. Mupuya’s family struggled to buy clothes for him and his siblings, and he was only able to get an early education due to the help of government grants.

Such a background does not provide the greatest opportunity for entering the business world, but the struggles that Mupuya experienced helped foster a work ethic and determination that has held him in good stead.

In 2008, everything changed, and it was a combination of bad luck in his family and new government legislation that paved the way for Mupuya’s business. Both of Mupuya’s parents lost their jobs, making their financial situation precarious once more, and at only 16, Andrew realized that he needed to help ease their burden. At the same time, the Ugandan government banned the use of plastic bags due to environmental damage that they were causing, and within this moment the young entrepreneur saw an opening.

Remembering the initial process, Mupuya says, “”I conducted a feasibility study, market research around retail shops, kiosks, supermarkets around Kampala and discovered there is need and potential market for paper bags.”

Mupuya worked out that he needed around $14 to start a small enterprise, producing paper bags, so he collected 70 kilos of plastic bottles which he sold to a recycling plant for $11, and he then borrowed the remaining $3 from his school teacher. His company was named, YELI (Youth Entrepreneurial Link Investments) Paper Bags, and it has gone from strength to strength.

Award-winning success

Not only was the company successful in a short period of time, but it was the first registered company in Uganda for the production of paper bags. By 2012, and still only 21 years old, Mupuya had been put forward for the prestigious Anzisha prize for young entrepreneurs in Africa. Against stiff competition, Mupuya won the award, and with it, $30,000 that he immediately put into developing the company.

Although he is still only 24, Mupuya has twice made Forbes magazine’s list of 30 African entrepreneurs below the age of 30 to watch out for. YELI paper bags currently produces around 20,000 paper bags per week, and employs 16 people in Uganda. Since he began his business, Mupuya has overseen production that exceeds 5.6 million bags, which have been sold both locally, to neighboring nations like Kenya, and as far afield as the U.S and Norway.

Andrew Mupuya is clearly buoyed by the recognition he has had saying, “The awards I have won give me courage to push on with my business.”

What should please Ugandans is that not only does this young man want to create more opportunities within his home country, but he is looking to do so with a company that can benefit the whole continent.

Mupuya explains that he has much grander plans for YELI, stating, “My vision is to have a cleaner Africa by eradicating use of plastic bags…I dream of having a big plant where I am able to supply paper bags all over Africa…so I believe this is just the start.”

Read more