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Tanzania extends its e-tax system to cut fraud

21 August 2016 Comments (0) Africa, Featured, Politics

John Magufuli

Tanzania’s president, John Magufuli, has extended the e-tax system to all government bodies as he bids to slash fraud.

Tanzania’s president, John Magufuli, has been in office for less than a year, but he is already making a name for himself as a staunch opponent of fraud and corruption. Magufuli has attacked tax evasion and corruption, in a bid to ensure that the government no longer loses billions of dollars in unpaid funds. One of the most significant measures taken in this battle with tax evasion has been the announcement that the nation’s e-tax system will now apply to all government departments and bodies.

The e-tax system

It was 6 years ago that Tanzania first introduced its e-tax system, but it has taken until now for the system to be applied to government positions and departments.

The e-tax system involved the distribution of Electronic Fiscal Devices (EFDs) by the Tanzania Revenue Authority (TRA) to Tanzanian businesses. The EFD is an advanced version of a traditional cash register that records all transactions, and provides the TRA with an easily processed record of the tax owed.

Prior to this point, businesses recorded sales in hand written books, which not only allowed much easier deceit, but ensured that the TRA’s job was far more difficult. Director of Education and Taxpayer Services Richard Kayombo said that businesses would claim to have sold less, and that the old system was practically “worthless” in terms of stopping tax fraud.

In contrast, EFDs are compatible with the TRA’s own Electronic Fiscal Device Management (EFDM), which provides the government with real-time sales information. Kayombo said, “The system enables us to get information directly from a trader when they make business transactions.”

An Electronic Fiscal Device (EFD)

An Electronic Fiscal Device (EFD)

While the system was initially rolled out to large scale traders in 2010, a second drive in 2013 saw it become compulsory for mid-sized traders too. However, it has taken President Magufuli until now to extend this measure to governmental departments and bodies too.

Magufuli not only feels that it will be a huge financial boon for government coffers, but that it is also a matter of principle. Magufuli explained, “We forced entrepreneurs to capitalize on the electronics tax collection while we, in government, have not resorted to the same thing, which is a total contradiction.”

The increased reach of Tanzania’s e-tax system ensures that the government cannot be accused of hypocrisy in regards to its stance on corruption, and it also means that taxation revenue is expected to exceed the government’s original target for the financial year. The commissioner general of the TRA, Alphayo Kidata, predicted that takings would surpass “the collection target of 15.5 trillion Tanzanian shillings during the 2016/2017 fiscal year.”

This is a figure akin to more than $7 billion.

Looking to reap the rewards

In the first 2 months of Magufuli’s crackdown on taxes last year, the TRA collected around $700 million in taxes. However, while some of this was achieved by targeting corrupt officials and business owners, the true impact of the president’s policy will not be seen until the end of the financial year.

The rollout of e-taxes to all government bodies was announced only last month, after Magufuli met with the Rwandan president, Paul Kagame, who has successfully implemented a similar system in his nation. Rwanda has offered to send IT experts to assist Mr. Magufuli’s government in the implementation of the technology, and the announcement was greeted with widespread approval by Tanzanian commentators and experts. If the move is as successful as hoped, Magufuli’s government will be in a strong position to build the economy and social infrastructure.

In 2014, tax collections covered 75% of government expenditure, but universal e-taxation could make a dramatic difference to this. Mr Kayombo confirmed that in the first year of commercial businesses using EFDs, tax revenue rose by 23%, and by 27% in the second year. A similar success within government institutions would provide Tanzania with a huge influx of revenue.

Professor George Shumbusho, Senior Lecturer at Mzumbe University, felt that it was an excellent move from the government, and one that could have a massive impact, exclaiming, “This is a commendable decision given the fact that the country has been losing a lot of money to unscrupulous public officials…With this system, the government may be able to fund its budgets by 100 per cent.”

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Starting up in Nigeria: a challenging environment

20 August 2016 Comments (0) Africa, Business, Featured

Nigeria startups

Nigeria has massive potential for innovative tech start-ups, although there are numerous obstacles in their way.

While it is officially Africa’s biggest economy, the Nigerian nation is struggling. Talk of a recession has darkened the horizon for over a year. The slump of global oil prices has been a hammer blow to the country, while terrorism and oil refinery problems have worsened the situation. Nigeria is currently beholden to oil for 70% of its revenues; it must rebalance its economy to unbind itself from market volatility. The country realizes this, and is making an effort to diversify its revenue sources. Many are starting to look toward innovative start-ups to take the country in a new direction.

Big tech potential in Nigeria, Konga leads the way

The conditions in Nigeria are rife for daring tech start-ups to create new solutions and drive growth. Unlike other regions on the continent, Nigeria has high rates of mobile penetration with approximately 75% percent of its 175 million people using mobile phones and data services, making it the largest mobile market in Africa. However, this market is currently woefully underexploited. According to a 2013 report by consultancy firm McKinsey, only 1.5% of the country’s $500 billion economy took place online. This void presents a glaring opportunity for tech start-ups to create revolutionary new services.

Konga, is one such start-up that seized the initiative. Launched in 2012, Konga was an early pioneer in Nigeria’s tech space, offering online retail services. Today the company is thriving, offering a range of original solutions, which have connected all manner of suppliers and manufacturers to consumers across the country. Other innovators are also following Konga’s lead, carving out their own niche in Nigeria. However for every success, many start-ups struggle to overcome barriers in their way.

Unusual obstacles: reluctance and electricity

The issues facing start-ups vary. Some are complicated while some are frustratingly mundane. One simple yet formidable roadblock that start-ups face is the availability of electricity. For a new business trying to carve its own niche in the ecommerce space, a reliable energy supply is essential. However, when energy supply is unreliable, as it often is in Nigeria, a start-up has to generate its own power and purchase alternative fuel sources in order to consistently operate. Ultimately, this can lead to greatly increased costs which squeeze margins, snuffing the life out of promising but cash-strapped startup ventures.

KongaPay launch

On the whole, Nigerians are still very wary about parting with their money over the internet, for fear of their capital or financial information being stolen. This paranoia is not entirely without merit, as Nigeria is a hotspot for online scamming and phishing schemes. In order to accommodate these fears, some successful start-ups such as Konga and Jumia have built cash-only payment methods into their business. Konga has also recently created a payment system called KongaPay whereby money is held securely until orders are delivered. Despite these efforts, reticence remains. While some start-ups have survived, this reluctance has certainly deterred some consumers from using new services, reducing the customer base that new start-ups rely on for growth. Tech firms must realize they need to foster a safe and reliable online payment environment, and convince the masses to use it.

Investment is needed, although so is caution

New accelerator programs sponsored by large foreign entities are helping more start-ups get off the ground, especially in the Fintech space. However, Nigerian banks aren’t traditionally interested in providing loans to risky start-up ventures, and encourage start-ups to attract private equity investors instead. Fortunately, foreign private equity is really starting to pick up in Africa, with more and more investors willing to take a punt on a good idea. Regrettably, these investors sometimes undervalue Nigerian enterprises, and strong-arm inexperienced Nigerians into unfavorable deals.

Other issues such as the country’s poor logistics system can bring woe to start-ups who rely on delivering a physical product. Sometimes the lack of skills in critical areas such as accounting and marketing can kill a promising tech business before it can get off the ground. In other instances, eager entrepreneurs try to make an idea that has worked elsewhere work in Nigeria; without analysis and adaptation this often leads to the graveyard.

A veritable gauntlet of obstacles faces Nigerian start-ups. However, those that have survived are serving as a shining example to those that wish to follow. Success is more likely if a fledgling firm is aware of the pitfalls ahead, provided they have a great idea, a solid business plan and the business acumen to make it all come together.

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Simbarashe Mhuriro: Zimbabwe’s savy solar innovator

17 August 2016 Comments (0) Africa, Featured, Leaders

solar power in africa

Simbarashe Mhuriro and his company OurSun Energy Limited are creating an ambitious solar powered future for Zimbabwe.

A surge of innovation is electrifying Africa. A new wave of savvy, ambitious entrepreneurs with big ideas are pushing the envelope, and invigorating nations. Simbarashe Mhuriro, is one such person. Simba, as he likes to be known, is the 31 year old Executive Director of OurSun Energy in Zimbabwe. His firm has set out ambitious goals to bring wide scale renewable solar energy to Zimbabwe

Business beginnings

Simbarashe Mhuriro

Simba grew up in Marondera, Zimbabwe, just 30 kilometers from the capital Harare.  He attended a local school and by all accounts had a normal childhood. He didn’t start his career as a business high flyer. Simba recalled how his first jobs were rather ordinary, and not particularly indicative of the career he has gone on to pursue. His early jobs included working as a school teacher and even as a disk jockey before becoming a hotel reservations agent.

He built upon his hospitality career and moved to Dubai after landing himself a job with hotel giant Emaar Hospitality Group. As he climbed the ladder, Simba rubbed shoulders with established business people from a variety of industries while gaining a sound understanding of the corporate world. In 2010, he decided that given his business skills and knowledge of Zimbabwe, he wanted to create his own firm.

Partnership and major solar plans for Zimbabwe

Simba found two seasoned business partners in Andrew Connelly and Honour Mkushi. The trio swiftly formed Oxygen Africa Ltd, a firm specializing in identifying opportunities and creating partnerships between foreign investors and projects in Zimbabwe. Originally the group focused on energy, mining and agriculture. However in 2012, Simba was introduced to Jo Hanns Dieter Trutschler, the principal of Meeco Group, a Swiss firm that creates solar energy projects in developing nations. Simba and Trutschler started to build a strong business relationship, with Trutschler tutoring the Zimbabwean on the workings of the solar energy sector. Simba said that this “literally got me hooked into solar, so I zoned in and said you know what, I have to get these guys to Zimbabwe with me.”

With Simba’s unique blend of business skills and Zimbabwean connections, and Meeco Group’s expertise in solar energy, a partnership was imminent. In 2014 the two groups formed the official joint venture OurSun Energy Limited.

Intensely passionate about OurSun’s program, Simba believes it can play a huge part in solving Zimbabwe’s energy issues. He explained why this is the case: “The Zimbabwean geographical situation is ideal for the implementation of solar energy and related applications such as energy storage, lighting or water pumping due to its level of radiation, one of the highest worldwide,”

While such a program seems ideal for Zimbabwe, the country is not known for being an easy place to do business. Bringing the myriad facets of OurSun’s program together has been no easy feat. Simba has been an instrumental facilitator responsible for dealing with authorities and regulation, identifying prospects, bringing in additional partners, managing imports, sourcing suppliers and overseeing the implementation of the projects.

Solar Energy stands to benefit Zimbabweans and their economy

OurSun aims to deliver 230MW of solar applications throughout Zimbabwe in the next ten years. The benefits of the scheme should be significant. In Simba’s words: “The main thrust for us is developing clean energy solutions for the well-being of the population, especially in remote and rural areas. They are the ones in urgent need of stable and reliable power.”

OurSun is also committed to seeing its schemes benefit the local economy. They are looking to maximize the amount of manufacturing, research and development and hiring that happens locally. The firm estimates that over 2,000 jobs will be created throughout the life-cycle of the scheme. Furthermore Simba has commented that the program represents a great opportunity to drive growth in the industry via the the “knowledge transfer” that will occur between OurSun and indigenous Zimbabweans, many of whom will be women and the young.

Tenacious individuals like Simba are essential to usher in change. Zimbabwe will enjoy the benefits of his conscientious work, and can be sure to see further contributions from this home-grown pioneer in the future.

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Engie and Thales will design the Dakar Regional Express railway line

13 August 2016 Comments (0) Africa, Business, Featured

rail track

The French companies Engie and Thales have won the design contract for Senegal’s new Dakar Regional Express Railway project.

The French companies Engie and Thales were recently announced as the winners of the lucrative design contract for Senegal’s vaunted new Dakar Regional Express railway line. The two companies are well established within Africa, but had to fight off stiff competition from several other bids in order to secure the contract with Senegal’s government. The announcement of their successful bids was made on July 27th by APIX, the Senegalese Agency for Investment Promotion and Public works, and the lucrative deal is valued at around $251 million.

The route ahead

The Dakar Regional Express Railway project was first announced in 2014, as part of the Senegalese government’s “Emerging Senegal” program, which aims to boost the nation’s economic and social development. The railway line will connect Senegal’s capital city, Dakar, with the new international airport, Blaise Diagne, and the city of Diamniadio.

The first part of the project will see the construction of the longest section of 36 km between Dakar and Diamniadio. After this, an additional 15 km of line will be built between Diamniadio and the new Blaise Diagne international airport.

The total 55 km distance, between Dakar and the airport, will be covered in around 45 minutes, with 14 stations en-route, and the trains will reach speeds of 160 km/h. The service is also intended to have 3 lines, with 2 for standard passenger trains, and the other for freight transport.

Construction is expected to begin in the final quarter of this year, and to take 26 months, meaning that trains should begin service at the end of 2018. By the end of 2019, the government expects the service to have carried around 115,000 passengers.

The construction work and civil engineering will be carried out by a French, Senegalese and Turkish consortium. The companies making up the consortium are the local Senegalese group CSE, France’s Eiffage Company, and Turkey’s Yapi Merkezi. However, the design and integration of the electrics and communications, alongside overall project management is what has fallen to Engie and Thales.

Engie and Thales the winning duo

Engie and Thales both have a long-standing involvement in African projects. Engie, formerly known as GDF Suez, is a renowned company within the field of electrical power, and has designed and developed renewable energy projects in Africa for 50 years. Engie’s expertise in electrical energy and energy efficiency is evidently pertinent to the Dakar rail project, and its existing presence in Africa will have also aided its bid. The company employs 154,950 people, and had a turnover of over $77.8 billion in 2015.

Likewise, Thales is a company with a recognized body of work within Africa, having worked across multiple fields around the continent for 30 years. However, its know-how, in rail signaling and telecommunications in land transport, is clearly of most significance to the decision to grant the group the dual contract. Thales is already involved in the rail industry in 5 African nations, and employs 62,000 people across 56 countries, with a turnover of $15.6 billion last year.

While the exact split of the $251 million contract between the 2 French corporations is not known, they released a joint statement saying, “Engie and Thales have been selected…for the design and construction of infrastructures and systems of the new Dakar Regional Express Train, for a contract in the amount of 225 million euros”

The teams’ responsibilities

Engie and Thales will now be responsible for multiple aspects of the Dakar Regional Express’ design and development. Aside from designing the systems and providing management, Engie and Thales are also responsible for integrating all aspects of the rail service.

One of the major areas in which their combined expertise will be utilized is the management of the fiber-optic communications network that will connect the trains to the command center. Train signaling, power supply, and providing technical supervision for all train station equipment are also core responsibilities that the French companies have.

Engie and Thales won the contract in the face of strong bids from various competitors, including two Chinese companies, China Railway Construction Company and China Road & Bridge Corporation.

Senegal’s government will be hoping that the combined proficiency of the French duo will ensure that a major part of their bold “Emerging Senegal” project will soon be a reality.

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Ellen Chilemba: The entrepreneur helping Malawi’s women

9 August 2016 Comments (0) Africa, Featured, Leaders

Ellen Chilemba

Ellen Chilemba is one of Africa’s youngest social entrepreneurs, bringing about change and empowerment for the women left behind by society.

For Ellen Chilemba, being an entrepreneur is about affecting social change and helping others reach success. Her ground-breaking project Tiwale is making waves across the African non-profit sector. Making the Forbes 30 under 30 list in 2015 and with a long way to go until she hits 30, she has a bright future ahead affecting change in Malawi’s development.

Born and raised in Malawi, at the age of 16 she was offered a scholarship to attend the African Leadership Academy in South Africa, where she studied leadership, entrepreneurship and African studies. This experience shaped her immensely and straight after graduating she launched her first major project: Tiwale. This is a social enterprise designed to train women in the apparel industry, and help them escape cycles of poverty in her native Malawi. This was a risk for Chilemba, and she doubted whether taking a year out of studying was good for her career. Fortunately, Tiwale has been extremely successful and she is now studying economics at Mount Holyoke College in Massachusetts while managing her business from abroad.

Believing in gender empowerment

Chilemba believes in women helping women, and that gender empowerment is the key to reducing poverty in her homeland. Gender disparity statistics in Malawi are alarming by global standards. Women have some of the lowest primary school completion rates, low socioeconomic markers and higher than average HIV and AIDS infection figures. Malawi also has one of the world’s highest maternal mortality rates and many young women are forced to leave school and marry at 12 or 13.

With little to no education to speak of, low access to medical care and few economic opportunities, women in Malawi are some of the most vulnerable and marginalized in Africa. These are the conditions that inspired Chilemba to create a project that would improve lives in a big way. She believes that is a key factor as incremental changes are easily undone, frequently resulting into a slide back into poverty.

tiwale

Tiwale finds success with a cyclic business model

It became apparent to Chilemba that although many women throughout Malawi wore bright, traditionally dyed clothing, most of these clothes were imported from neighboring countries. Having identified a potential business, she began training women to dye-print different fabrics that are then sold to designers as garment material or from their website as tapestries and tote bags. The women are allowed to keep 60% of the profit, while 40% goes back into the company to help to train more women and perpetuate the cycle.

Tiwale means “let’s glow” in the Malawian language, Chichewa. Tiwale’s purpose is to empower, guide and allow women to “lift” themselves out of poverty. Chilemba’s orignal model has grown considerably, and since its inception 3 years ago has branched into two avenues.

The first branch is the fabric design training for women in the community, where their goods are sold through the company and they are free to use their skills to start their own business, or continue working with the program in their facilities.

The other is much more ambitious, offering micro-finance schemes. These begin with leadership and entrepreneurship courses where the participants learn business skills such as inventory and accounting. After the training, the women present business proposals and the most viable ideas are given interest free loans that are repaid over 10 weeks. Tiwale has also introduced a scheme to send promising candidates back to school or college with grants paid for by the vocational courses and resulting profits. Each woman that they help then goes on to help others. Currently they have helped 40 women to become business owners and have taught entrepreneurial courses to 150 more.

What does Chilemba’s future entail?

Not one to be satisfied with her current success, planning is already underway to build an education and entrepreneur center for women. This will be used in a number of ways, giving the participants space to create their products, as well as for further workshops and additional activities. Chilemba sees a future for Tiwale where the company outgrows her involvement and flourishes on its own. She wants to focus next on the education system in Malawi and ways to attract tourism to her “beautiful country.” She says she is “excited by social entrepreneurship and has many more ideas to pursue.” Chilemba is a much needed role model for Malawi. Through her efforts perhaps she will inspire future leaders and entrepreneurs who can further drive change in their homeland.

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How telemedicine promises to change Africa

8 August 2016 Comments (0) Africa, Business, Featured

telemedicine africa

Telemedicine is making a big difference is African disaster zones; however the technology has huge potential to benefit the whole continent.

Technological disruption is rife across Africa. The developing continent is perfect for new technologies to be used in ways that were either impossible or just unnecessary in the Western world. From solar energy to mobile banking, new technologies are helping plug gaps and solve problems at an astonishing rate. In Africa, one lesser known but incredibly important technology is telemedicine, and it’s only just getting started.

In practice, telemedicine is simply the transmission of medical information via modern telecommunications, allowing for remote diagnosis, consultation and treatment. This straightforward concept is finding a broad array of applications across Africa, as the continent wrestles with its unique set of healthcare challenges.

Telemedicine is changing humanitarian healthcare

Telemedicine has become a critical tool for medical treatment in disaster and conflict situations. One recently reported example came from doctors working under healthcare charity Médecins Sans Frontières (MSF.) In a recent interview with SciDev.net, MSF Doctor Raghu Venugopal recalled a story about a young girl who had been shot in the hand in war-ravaged eastern Congo. Medical staff on the ground were unsure how to treat the wound, and whether or not they would have to amputate the girl’s hand. Through MSF’s telemedicine “store and forward” consulting services they uploaded photographs and other information about the wound, which were then assessed by specialists overseas. Recommendations were then relayed to the medics on the ground not to amputate, but to remove specific unrecoverable tissues, ultimately saving the girl’s hand.

This is just one such example. Unfortunately, warzones aren’t exactly abundant with top-tier western trained specialists. However through telemedicine services, humanitarian medics and field doctors are able to access expert advice within a matter of hours. Dr. Raghu spoke positively about how quickly MSF’s telemedicine service is being adopted: “What we’re seeing is the time needed for 1,000 cases (on MSF’s system) to accrue, to 2,000 cases to accrue, and then for 3,000 cases to accrue is dropping from years to months, to even shorter periods of time, so we’re seeing very promising uptake.” Additionally, Dr. Raghu commented on how the doctors in the field were highly positive about the service, highlighting the relevance and timeliness of the advice, cost savings and invaluable learning they obtained.

Tech tackles Ebola

Telemedicine technology has also been a valuable tool in tackling the most infamous African health issue in recent years, Ebola. The highly contagious virus poses an extreme threat to frontline healthcare workers. However, by using robot mounted iPads to examine quarantined individuals, doctors have been able to assess symptoms, communicate with patients and provide treatments while minimizing risk. In a similar fashion to MSF’s service, information on Ebola cases is often relayed to overseas specialists for consultative advice. For those undergoing treatment, telemedicine services also offer the opportunity to communicate with their family and loved ones without risk of spreading the virus. Undoubtedly, telemedicine services are transforming the quality of treatment available in areas of humanitarian crisis.

Huge benefits to internal programs

Merck Telemedicine partnership in Kenta

Merck Telemedicine partnership in Kenta

Some African countries are taking note of Telemedicine’s effectiveness, and making moves to implement their own programs on a national level. In May 2015, Kenya announced a collaborative partnership with the German firm Merck Group. Together they are rolling out a new telemedicine scheme designed to connect rural communities in the nation’s east with specialists at Machakos Level Five Hospital, the top referral destination in the country. So far the program has been highly successful, prompting the government to expand the scheme to additional regions. Kenya’s Health Secretary, James Macharia, encouraged other countries in the area to follow suit: “I urge all stakeholders and county governments to invest in telemedicine as a way of bringing specialised services closer to the rural poor.”

Connectivity is key: Google, Microsoft and Facebook can help

While other countries such as Nigeria, South Africa and Ghana have also seen successful schemes take off within their borders, major telemedicine services remain off limits for most African nations. Locked away behind poor broadband infrastructure and financial limitations, the technology will remain scarce, restricted to programs provided by humanitarian organizations in crisis zones, until conditions change.

Telemedicine is already revolutionizing emergency care in disaster areas. The technology also has the potential for remote training and up-skilling of Africa’s healthcare sector. However the biggest change to Africa’s healthcare fortunes will occur when telemedicine services become widely available to rural populations across the continent. Fortunately, this change may be on the horizon. Telemedicine should be able to arrive quickly, riding on the back of major internet rollouts pledged by the likes of Google, Facebook and Microsoft. If this is indeed the case Africa stands to benefit immeasurably.

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Pokemon Go fever seizes Africa

5 August 2016 Comments (0) Africa, Business, Featured

Pokemon Go South Africa

Pokémon Go has only been out for a month, but its popularity has led to global game-play including in many African countries.

The world has caught Pokémon fever and Africa has not been immune. Even though there is no official launch date for Pokémon Go anywhere in the continent, it is easily available to download from the app stores for those savvy and desperate enough to play ahead of its release. In the month since its launch it reportedly has more than 75 million players worldwide, overtaking Twitter for global users.

Pokémon Go is a 2016 release from Niantic, in collaboration with Nintendo who released the original game 20 years ago. Unlike the archetype which was played in a world contained inside a handheld Gameboy, Pokémon Go is set in an augmented reality universe. Players roam their real world which is overlaid with computer-generated imagery, attempting to catch creatures and battle them in simulated fight scenes. This is the first release of the game and it is predicted to launch versions where players can battle other players instead of AI characters.

Pokémon Go captures attention throughout the African continent

The game has been particularly popular in South Africa, with regular ‘meet-ups’ throughout the country, including in Cape Town and Johannesburg. Recent meet-ups in Port Elizabeth have even been coupled with aid drives for animal charities, capitalizing on the success of the app and need for players to gather in prime locations.

Similarly in Nigeria, there has been a veritable craze for Pokémon catching all over the country. Not long ago, an online craze would have been unthinkable in a city like Lagos, famous for its patchy mobile coverage. Recent improvements have changed matters however, with providers promising 3G coverage for 90% of the country and fiber-optic rollouts imminent.

Ghana and Kenya paint a similar picture with players roaming the streets looking for creatures and convening in “hotspots” in all major towns. Unlike in the western world, where Pokémon Go is widespread, in Africa it’s only the affluent and developed areas that seem to be picking up on the craze. This is due to the higher than average ownership of smartphones, coupled with access to mobile data services, along with generally higher socioeconomic circumstances.

Pokemon Go gathering in Cape Town

Pokemon Go gathering in Cape Town

Pokémon Go’s success drives sales for other businesses

While Nintendo has seen a rise in $7.5 billion to its market value, Pokémon Go has also been profitable for local businesses, utilizing their location or certain elements of the game to attract customers and drive sales. Many bars and restaurants, such as Beerhouse and Steers Fast Food in South Africa are offering unique promotions connected to the game, and using social media to promote Pokémon locations near their business. Some venues have even been placing Pokémon “lures” to promote their happy hours and organizing walks and Pokémon Go-themed events. Many South African “meet-ups” have also combined Pokémon catching with charitable drives, such as for local animal charities in the area.

With increased real world interaction and a new global interface, the drawbacks are obviously related to player security. According to insurance group Dialdirect, users in South Africa need to be cautious when playing, as they could become easy targets for crime. Many areas in Africa are dangerous for solo pedestrians to be walking around at night, or with their smart phones clearly on display. Crime that has been seen in other countries could be amplified in some of Africa’s more unsafe regions, particularly if users enter into those areas unknowingly and without weighing up necessary risk factors. “We usually recommend that consumers conceal their smart phones and that they don’t unnecessarily brandish them about” said Dialdirect spokesperson, Bianca de Beer.

Playing can be a real life danger to users

Users risk their online security as well as their real-life security by irresponsibly playing the game. While Pokémon Go is not officially available in Africa, illegitimate users risk their phone’s security by accessing the app via third party channels, leaving their device open to hackers. According to a statement by IT security company Sophos‚ there is already one “malware” mirror version of the Pokémon Go app out there and being downloaded. Users are urged to play with caution and not put themselves into risky situations, in real life or otherwise.

As the technology wave surges across Africa, connecting ever more people to internet and data services, Pokémon Go and its successors are likely to usher in a new generation of avid gaming enthusiasts. With such popularity in Africa even before its official release, Pokémon Go seems to be here to stay.

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Bettering Benin: Improving the Tourism Sector

3 August 2016 Comments (0) Africa, Business, Featured

Pendjari National Park – Benin

Benin received a $50 million International Development Association credit to invest in its tourism sector that will, hopefully, add an additional 30,000 jobs.

In March 2016, The World Bank approved a $50 million International Development Association (IDA) credit to Benin to invest in its tourism sector. The IDA provides grants and zero-interest loans, via the World Bank, to the world’s poorest countries to increase business opportunities and, ultimately, reduce poverty and improve standards of living by improving various industries. The tourism industry is Benin’s second largest source of foreign exchange currencies and third largest employer behind agriculture and commerce. The investment is intended to reduce the vulnerability of Benin’s economy, given its high dependency on informal trade with Nigeria, and its reliance upon the cotton sector.

The five year project, Benin Cross Border Tourism and Competitiveness Project (CBTCP), is a part of longer-term 2013-2021 tourism plan. The overarching aims of the World Bank’s funding are to increase and improve the current touristic sites including the physical infrastructure, such as accommodation; to improve the skills of tourist-industry personnel; to effectively promote tourism through branding and targeted marketing schemes; and to improve the management of existing sites by reinforcing leadership frameworks. This project is slowly moving from conception to implementation: in mid-July, the government approved a decree that will establish the creation of the National Agency of Heritage and Tourism. The aim of this project, and its corresponding agency, is twofold. By increasing cross-border tourism and private sector investment, the World Bank hopes to move towards its goals of poverty reduction while boosting “shared prosperity.”

Benin capitalizes upon the ecotourism industry

Visitors to a cultural festival in Benin

Visitors to a cultural festival in Benin

Investment will occur in the country’s key tourist destinations, mainly Abomey-Calavi, Cotonou and Ouidah, and hopes to help more than 1,000 existing tourist firms. More than 20% of these firms are led by female entrepreneurs, a point which both the World Bank and government of Benin are emphasizing as part of a gender inclusive initiative. It is hoped that, by investing in these firms, more jobs will become available for both unemployed Beninese people, and for citizens currently working in less secure industries, such as the cotton industry.

Benin is poised to capitalize upon the ecotourism industry if it can appropriately monetize its natural resources into well-kept tourist destinations. In order to do so, however, Benin will have to make a concerted effort to appropriately allocate World Bank funds. The first step is to clean up the existing potential tourist attractions: Benin’s coastline has been damaged from decades of open defecation, lack of waste removal systems and failure of sanitation infrastructure to remove both human and manufactured detritus. It seems that, hypothetically, the newly created National Agency of Heritage and Tourism may be able create jobs for people both working directly in the tourism sector, and for people working on clean-up projects.

30,000 additional jobs

In fact, according to the World Bank Country Director for Benin, Burkina Faso, Cote d’Ivoire, Guinea and Togo, “if efforts are made to meet [Benin’s] potential, tourism’s direct contribution to the country’s GDP will be increased by up to 30%, and could generate an estimated 30,000 additional jobs.” Thus far, the tourism industry has failed to develop as rapidly as that of other West African nations, due in part to the inability of private tourism operators to apply for loans. As capital has become less concentrated with the proliferation of tourism providers, individual businesses have been unable to meet the minimum requirements in order to receive loans from local banks, let alone international financial institutions.

The CBTCP will encourage private commercial banks to extend loans to businesses that fall in the “micro, small and medium sized” enterprise (MSME) category. The CBTCP will use World Bank funding to mitigate creditor risks through “first-loss cover,” thereby shouldering some of the risk that banks have been unwilling to absorb.

The National Agency of Tourism and Heritage directly looked after by Patrice Talon

The biggest fear of both Beninese citizens and outside observers is that the funds will be inappropriately allocated without direct oversight: the National Agency of Tourism and Heritage is not, as one would expect, overseen by the Ministry of Tourism, but is directly looked after by the President, Patrice Talon. The government has not issued an explanation of why this is, but hopefully it will not cause any confusion in the allotment of resources.

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Is time the only thing that Buhari needs to rebuild Nigeria?

1 August 2016 Comments (0) Africa, Featured, Politics

Muhammadu Buhari

Nigeria’s president inherited a multitude of problems from the previous administration. Does he have what it takes to overcome them?

Nigeria’s President, former military ruler Muhammadu Buhari calls for time and space to achieve the objectives he laid out upon his election last year.

Buhari has openly declared his intentions for Nigeria’s future. He wants to build a country that future generations will be proud to inherit. This is rare in a continent where leaders frequently think in the short term – often selling off natural resources for instant personal gain, rather than investing in long-term solutions for Africa’s economic problems. Buhari’s Nigeria, he claims, is “for its children.” Whether these promises will materialize will depend on his ability to identify and build upon his past mistakes, and those of his predecessor.

Muhammadu Buhari comes from a large family; he was his father’s 23rd child, born in 1942 in Daura, Katsina state. He ruled Nigeria for 20 months in 1985 and has since lost three general elections to the People’s Democratic Party, which has dominated the political landscape in Nigeria since the end of military rule in 1999.

Winds of Change for Nigeria

Buhari’s perseverance has paid off and after waning public support for Goodluck Jonathan, he became the first opposition candidate to de-throne an incumbent leader in Nigeria. The issues inherited from previous governments will not be easy to overcome however, and continuing President Jonathan’s battle to contain the Islamic militants in the north will be Buhari’s biggest challenge.

Originally from Nigeria’s Islamic North, Buhari has alienated many from the mainly Christian south of the country by giving his support to Sharia law. Subsequently, he has had to strongly deny having a radical Islamist agenda. Deep-seated suspicion regarding his religious background and suggested support of Boko Haram has been quelled by a recent failed assassination attempt that left 82 dead, apparently orchestrated by Boko Haram forces.

Boko Haram, unemployment and rampant corruption to fight

Boko Haram

Boko Haram

He was previously mistrusted by the voting populace in the south, but President Jonathan’s failure to overcome the jihadi militia left Buhari with an opportunity to exploit. The 276 Chibok girls missing since 2014 have piled local and international pressure upon Nigeria’s administration. The Boko Haram crisis has left more than 20,000 dead and over 2 million displaced since 2009. Since his inauguration there has been a lot of posturing and even claims to have “defeated” the militant group, but terror attacks, kidnappings and suicide bombings are still rife, particularly in the North of the country. With an agenda to meet, but what appears to be little structural planning, it will take more than time or crude military suppression to overcome “the most deadly terrorist group in the world.”

Boko Haram is unfortunately not Nigeria’s only crisis. Buhari will also have to tackle large scale unemployment and rampant corruption. Buhari’s Deputy Prime Minster estimated that 110 million of Nigeria’s 170 million inhabitants are living in extreme poverty. He also noted that the majority of the wealth is going into the pockets of the nation’s privileged few. For Africa’s most populous nation, these economic issues add stress to the fractures caused by religious extremism and recent spates of violence. Making progress with these issues may also be the key to undermining the militant support among the population, with rampant unemployment being a key factor in their recruitment campaigns.

Buhari: an incorruptible and converted democrat for Nigeria

His biggest election promise is to tackle the fuel shortages that have blighted the population and stagnated the economy over the last several years. His plans are to increase production and improve distribution, while renegotiating terms with the rebel forces. In 2009 President Jonathan’s government agreed to pay militants $400 per month to stop their attacks on the fuel supplies. Once the money inevitably dried up, the attacks recommenced and the supply problems are now worse than ever. On paper, Buhari seems to be well placed to handle this crisis: he was the Minister for Petroleum and Natural Resources in 1976 and during his tenure heavily invested in pipelines and created 21 new petroleum storage units across the country. But his ability to negotiate with the Nigeria Delta Avengers is in contention; his rigidity and stubbornness are well known within the administration and beyond. Striking a balance between tackling the underlying issues, negotiations and strategic military moves will be key to eradicating the extremist violence that have dominated the political horizon in Nigeria.

Buhari claims to be a “changed man” and a “converted democrat,” taking full responsibility for all that happened during his short military rule in the mid-80s, and the part he played in the military coup that overthrew the democratically elected leader, President Shehu Shegari. If Buhari’s “incorruptible” and rare reputation for honesty holds true, he may be able to usher in a wave of change, washing away the culture of injustice and corruption, both in businesses and in government. He has appealed for time and patience, but will this be enough, or will the multitude of problems he faces just be too much to overcome?

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Tech Titans: The Battle for Africa

31 July 2016 Comments (0) Africa, Business, Featured

Microsoft 4afrika initiative

The tech giants are busy building in Africa as the continent represents a golden opportunity to reach new customers while transforming African society.

We all know the names Google, Facebook, Microsoft, and IBM. These are the tech titans who have forged the modern world we inhabit and hardly entities that the general public associates with Africa. However, foresight and innovation enabled these behemoths to propel the developed world to a new future. Now, the tech giants have foreseen that Africa’s future is one of abundant potential.

The reasons behind this trend are actually rather simple. Africa possesses 7 of the world’s 10 fastest growing economies. As a whole, Africa is the fastest growing region on earth. For tech companies this has created two general fronts on which to engage the continent. Firstly, this growth has led to the emergence of the African middle class. Tech companies suddenly have a new market in which consumers are hungry for their products. Secondly, this new market has enormous potential to grow. With limited tech infrastructure, such as internet access and mobile networks, the adoption of new technologies is still very much in its infancy across huge parts of the region. If top companies generate the conditions for mass tech usage, they stand to gain an enormous new customer base while improving the lives of millions; a veritable win-win situation.

Africa, a new frontier for Google, Facebook, Microsoft, IBM

Microsoft was arguably the first global tech company to take a major active interest in Africa. Three years ago, the company started its 4Afrika initiative. The $75m program was designed to train thousands of Africans either for their own businesses or for the company’s 22 African offices. Simultaneously the program focused on getting affordable smart devices into the hands of millions of new customers. Amrote Abdella, the regional director of the 4Afrika project said, “In order to drive the knowledge economy, we need to drive connectivity so Africans can create and access content.”

As a result the company is experiencing strong growth in the region. However, rather than resting on their laurels, Abdella went on to explain why Microsoft intends to build on its successes: “Three years down the road one of the things that we have learnt is that the need and the demand on Africa is about doubling down on investments we are making around connectivity and smart services.”

Digify, Project Loon, Link… Ambitious plans for Africa

Project Loon

Project Loon

The connectivity race is on in earnest. Google first tested the African waters back in 2012, with an SMS based version of its Gmail service. Today, their efforts have intensified while becoming more imaginative. Google intends to utilize its cheekily named “Project Loon” in the region. Loon is a network of communications balloons positioned high in the stratosphere that can be strategically maneuvered to provide connectivity in remote areas where coverage is lacking. Data is then passed through the balloon network before being transferred down to the global internet.

Google has two other notable initiatives in the region, Link and Digify. Link has seen the installation of metro fiber optic Wi-Fi networks across Uganda and Kampala, with a further roll-out underway in Ghana. Digify is a major commitment to train 1 million Africans in digital skills. Google spokeswoman Michelle Atagana explained the strategy behind the project: “The idea is to improve people’s skills so that they can increase their chances of becoming employed or start their own businesses.”

Not to be bested, Facebook is focused on waging ambitious campaigns in the booming new market. In 2015, the social media giant opened its first African office in Johannesburg. Additionally, Facebook CEO Mark Zuckerberg highlighted plans to provide satellite internet to rural areas of sub-Saharan Africa. He explained why he felt the move was key by saying, “To connect people living in remote regions, traditional connectivity infrastructure is often difficult and inefficient, so we need to invent new technologies.”

Investing to impact

IBM has also been incredibly busy in Africa in recent years. The company has opened new research centers, invested in local businesses, funded a $60m computer skills program, and created new initiatives designed to drive the usage of big data, analytics and cloud computing. Dr. Kamal Bhattacharya, the director of IBM Research explained why the company is taking such a significant interest: “As scientists we believe that science and technology is an enabler to express your needs, it is an enabler to shape your own future. And this is why IBM is making this very significant investment into Africa.”

Where the tech giants go, immense progress and social transformation follows. Economically, Africa will benefit immeasurably as the continent gains skills and business is increasingly done in today’s tech space. Socially, Africans will be able to access a global treasure trove of information, use life changing services and communicate in a way never before possible.

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