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South Africa’s slowing growth to be hit by Brexit: Reserve Bank governor

29 June 2016 Comments (0) Africa, Business, Latest Updates from Reuters

JOHANNESBURG (Reuters) – The governor of the South African Reserve Bank said on Tuesday that although the decision by Britain to exit the European Union would not cause a recession, already slowing economic growth would be hit.

Speaking to Bloomberg TV in Portugal Lesetja Kganyago said: “We would not venture into a recession at this stage, but there is no doubt that it will slow the South African economy from the weak growth that we already have.”

Finance Minister Pravin Gordhan said on Sunday financial market volatility caused by Britain’s decision to quit the EU, which sent the rand tumbling, could hurt investment flows into South Africa.

Britain voted last week in a referendum to leave the EU, wiping billions of dollars off world equity markets.

“It has affected sentiment and investors were looking for safe assets. We are not seen as one of the safe assets,” Kganyago said.

South Africa’s economy is barely growing, hobbled by power cuts last year, low commodity prices, drought and political ructions that have unnerved investors.

Africa’s most advanced economy contracted in the first quarter, putting it on track for its first recession in seven years.

 

(Reporting by Zandi Shabalala)

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Tanzania sees economic growth picking up to 7.4% in 2017

28 June 2016 Comments (0) Africa, Business, Latest Updates from Reuters

DAR ES SALAAM (Reuters) – Tanzania’s central bank said on Tuesday it expects economic growth to accelerate to 7.4 percent in 2017 from an estimated 7.2 percent this year, driven by construction, communications and finance.

The Tanzanian economy, East Africa’s second-biggest, grew 7 percent last year.

“The macroeconomic objectives of the government aim at achieving a real gross domestic product growth of 7.3 percent in 2016/17 based on the projected growth of 7.2 percent in 2016 and 7.4 percent in 2017, while maintaining inflation at single digits,” the Bank of Tanzania said in its latest monetary policy statement.

“The bank will continue pursuing prudent monetary policy in 2016/17 to keep inflation close to the medium-term target of 5 percent, while ensuring that the liquidity level is consistent with demands of various economic activities.”

Tanzania’s year-on-year headline inflation rate edged up to 5.2 percent in May from 5.1 percent in April, as prices rose for non-food items.

The government said it plans to increase spending by 31 percent in its 2016/17 fiscal year to $13.51 billion to finance infrastructure and industrial projects.

 

(Reporting by Fumbuka Ng’wanakilala; Editing by George Obulutsa, Larry King)

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Tunisia central bank holds key interest rate unchanged at 4.25 percent

28 June 2016 Comments (0) Africa, Business, Latest Updates from Reuters

TUNIS (Reuters) – Tunisia’s central bank has kept its key interest rate unchanged at 4.25 percent, an official in the bank said on Tuesday.

The bank last cut its main interest rate in October from 4.75 percent, in a bid to boost economic growth as inflation fell.

 

(Reporting By Tarek Amara; Editing by Janet Lawrence)

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Old Mutual says could dual-list wealth, emerging markets units

28 June 2016 Comments (0) Africa, Business, Latest Updates from Reuters

LONDON (Reuters) – Old Mutual said on Tuesday its preferred option after splitting into four would be to have two of the new companies listed on both the London and Johannesburg stock exchanges.

The Anglo-South African company expects to complete its restructuring by the end of 2018.

The changes include carving out its emerging markets operations to create a new South African holding company and a company that would mainly comprise the group’s wealth operations.

Chief Executive Bruce Hemphill said the firm had also received approaches for its businesses from industry and private equity players.

“We are still going through a process,” he told Reuters by phone. “We have settled on a preferred route, (but) that does not preclude the possibility of someone coming along with an offer.”

Old Mutual Wealth was valued by analysts earlier in the year at 3-4 billion pounds ($4.01-$5.35 billion).

Hemphill said despite recent market fluctuations following last week’s referendum vote for Britain to leave the European Union, Britain was still a “sure bet” in the longer term.

He declined to comment on the sale of Old Mutual Wealth’s Italian unit, which has attracted four private equity bidders in its final stages, sources told Reuters last week.

But he said Old Mutual was going through a process of “cleaning up” the Italian wealth business.

The firm said it plans to distribute a “significant proportion” of its stake in Nedbank Group Ltd to the shareholders of the new South African holding company.

The FTSE 100-listed company also said it plans to continue cutting its 65.8 percent stake in U.S. asset management firm OMAM.

Old Mutual said it faces headwinds from weakness in the South African rand and from lower equity markets, but said gross sales in the year had been strong.

Old Mutual shares were up 4.6 percent to 186.3 pence at 0826 GMT in line with a bounce in financial stocks following a severe sell-off this week.

Old Mutual will hold its annual general meeting on Wednesday, along with an extraordinary general meeting where shareholders will vote on Hemphill’s proposed 1,000 percent bonus.

($1 = 0.7483 pounds)

 

(By Noor Zainab Hussain and Carolyn Cohn. Reporting by Noor Zainab Hussain in Bengaluru; editing by Sunil Nair and Jason Neely)

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Romain Girbal: Doing Mining Differently in Africa

28 June 2016 Comments (0) Africa, Featured, Leaders

Mining has often been a “dirty” industry, with a history of exploitative social practices and environmental degradation, particularly in Africa. Various treaties and organizations have made efforts to clean up mining practices over the years, but French entrepreneur Romain Girbal has decided to start at the source. He is the president and cofounder of the Responsible Mining Alliance (AMR), a new company that is working to develop responsible mining projects in Africa that respect both the community and the environment. The company has already started its first bauxite mine in Guinea and its passionate leader is looking to expand.

Romain Girbal: From the City to the mines of Africa

Romain Girbal looked set to pursue a career climbing the corporate ladder. He studied business law at the University of Paris X Nanterre and international trade in Madrid. After graduating from the prestigious HEC business school in Paris in 2007, he moved to London and worked in the City as a junior consultant in structured financing for mining behemoth Glencore, where he focused on West Africa and Latin America. Glencore is the world’s largest commodities trading company, with over $170 billion in revenue in 2015. Looking back on his experience there, Girbal notes that “working there allowed me to familiarize myself with the sector and to quickly learn its norms, challenges and growth opportunities.” These lessons helped him to later launch the Responsible Mining Alliance.

In 2008, however, Romain Girbal left Glencore to become the director of the legal department of Harvest Energy Limited (owned by State Oil), a British company working in fuel distribution in several European countries. In his new role, he managed the daily negotiation and drafting of contracts. Girbal soon felt the need for a change, stating, “I then realized that I had more of an entrepreneurial spirit, and I wanted to try out an African adventure.” He joined up with Thibault Launay, a friend he made in London, and the two decided to try to make it on their own.

In 2012, they created Adventure Capital Corporation, a venture capital and consulting firm specializing in mining, oil and gas investments, mostly in Africa. These first steps foreshadowed the creation of the Responsible Mining Alliance in July 2015. This time, Romain Girbal and Thibault Launay set out to develop mining projects in Africa that were responsible both socially and environmentally, an innovative and ambitious vision that would begin to take shape in Guinea.

The Responsible Mining Alliance (AMR) rethinks mining

logo-alliance-mimiere-responsable“With the Responsible Mining Alliance, we wanted to show that you can do mining differently,” declared Romain Girbal in February 2016 when asked about the philosophy of AMR on French business channel BFM. With this credo in mind, the two young French entrepreneurs set up shop in Guinea, persuaded of the enormous potential of mining in this emerging country. The Responsible Mining Alliance now holds a bauxite mining permit in Boké, in the northwest of the country.

Although Romain Girbal and Thibault Launay were eager to jump into the mining sector in Africa, they wanted to do so in a new and ambitious way. This is why the Responsible Mining Alliance goes further, with the goal of doing “socially responsible mining” as they told BFM Business. What does that mean?

“We’re trying to set new standards in the mining industry, first in Guinea where we are starting our operations. We’ve signed partnership agreements with the Boké School of Mining and the Boké Center for Professional Education so that our mining engineers and geologists can give free classes there,” explained Romain Girbal, sincerely motivated by the idea of changing things in an economic sector that has been stained by negative clichés. While the government of Guinea has standards for socially and responsible practices, his group is “working hard to set ever higher standards. Mining is about more than extracting raw materials. It can also be a way to get local communities involved in mining by starting win-win partnerships for everybody.”

The Responsible Mining Alliance’s vision could be summed up in a few key points: following high social standards, respecting the environment, favoring local employment as much as possible and training engineers and workers through partnerships. These aren’t just pretty words; as Romain Girbal likes to point out, “For us, we consider it a requirement. In terms of employment, for example, right now we are only a small team in Guinea, but 18 of our 21 employees are Guineans.”

romain-girbal-photo-conseil-administration-alliance-miniere-tesponsableThe high standards Girbal has set for his project have attracted outside attention as well: in January 2016, Xavier Niel, the famous French billionaire and boss of telecom operator Free, decided to invest in the Responsible Mining Alliance via his personal holding company NJJ Capital. This was a big publicity win for the young mining company, and other well-known investors and partners have since joined the adventure. These include Anne Lauvergeon, ex-CEO of Areva; Edouard Louis-Dreyfus, head of Louis Dreyfus Shipowners; Alain Mallart, head of Energipole; and Daniel Lebard, head of ISPG. Not to mention Arnaud Montebourg, the former French Minister of the Economy, who worked his network to support the young French entrepreneurs’ project. In addition, the well-known French business journal Les Echos recently wrote an effusive article on AMR about how this mining startup is taking the Paris elite by storm. It’s just the latest media success for a project that seems to be going quite well.

Bauxite, the mineral at the heart of the AMR

Beyond the historical ambitions of this project, the AMR represents a strategic business choice to invest in bauxite, a mineral necessary for the production of aluminum. Bauxite is sold to aluminium oxide refineries, who then sell it to aluminum smelters to make the final product. According to Girbal, “You need about 4 tons of bauxite to produce 1 ton of aluminum.” In the context of globalization, where emerging economies like China have profoundly shaken up the market, bauxite is one of the most important raw materials for several strategic economic activities, such as aviation, transportation and construction.

In 2010, worldwide production of bauxite reached 211 million tons. Australia is the largest producer, with a third of the market, followed by China, Brazil, India and Guinea, which holds an 8% share.

According to the French Geological and Mining Research Bureau (BRGM), Guinea alone holds 52% of the world’s bauxite reserves. Romain Girbal readily shares this number to show the potential of the Responsible Mining Alliance in this West African country undergoing rapid growth. “For the moment we’re only operating in the Boké prefecture, which is the real global center of bauxite and where the future of this strategic mineral lies because it’s where you find the world’s best bauxite,” Girbal notes. “Big mining companies are setting up here more and more.”

In Boke prefecture, in the northwest of the country, the Responsible Mining Alliance has obtained an exploration permit for 295 square kilometers (114 square miles). Prospecting has already begun and extraction should start soon. This deposit contains an estimated 650 million tons of very high quality bauxite.

“I think we came at the right time to Guinea, getting started with a very promising bauxite permit,” Girbal says. “That’s how we have been able to develop the Responsible Mining Alliance and get to where we are today.”

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In Madagascar, a small family company mushrooms

28 June 2016 Comments (0) Africa, Featured, Leaders

Ylias Akbaraly

Ylias Akbaraly heads Sipromad Group with 2,000 employees and revenue of $100 million a year.

Madagascar is among the world’s poorest countries, but that hasn’t stopped businessman Ylias Akbaraly from amassing a fortune estimated at $710 million.

Akbaraly, a Franco-Malagasy of Indian origin, has helped build a family business into a conglomerate with holdings in industry, tourism, real estate, aviation, banking, agribusiness, pharmaceuticals and security as well as technology and telecommunications.

Forbes ranked him as the fifth wealthiest person in francophone Africa and his company reported $100 million in revenue last year.

He has master’s degrees in management and marketing from the University of California, Berkeley, and from the School of Management Company of Paris. He also sits on the international council of the Belfer Center for Science and International Affairs at Harvard University.

Company employs 2,000

As chairman and CEO of the Sipromad Group for 20 years, he has helped transform his family’s business from a company of 20 employees to one with 2,000 people on staff and offices in Mauritius, Paris and Dubai in addition to Madagascar.

sipromad.com

sipromad.com

He received the Pravasi Bharatiya Samman Divas Award in 2009, the highest recognition from the Indian Government to a non-resident Indian, and Britain’s Non Resident Indian Businessman of the Year in 2006.

In 2008, he also co-founded with his Italian-born wife, Cinzia Catalfamo Akbaraly, the Akbaraly Foundation, a charitable organization that aims to reduce poverty through the development of projects in education, nutrition, health, child development and housing. The foundation currently is focused on the “4Awoman Project” to fight against women’s cancer in Madagascar and in Africa.

Akbaraly is also a director of Man and Wife, a family and social magazine published in India, Real Estate Observer, a magazine specializing in real estate and real estate development in India, and the Madagascar Foundation in United States.

Building tallest structure in region

The company is building the Orange Telecommunication Tower, a 33-story headquarter building in Atananarivo, Madagascar, that is expected be the tallest structure on the Indian Ocean.

The family and the business grew from humble origins.

His family came from India to Madagascar in 1918 when his great-grandfather sought better opportunities. He became a trader in the coastal town of Belo Sur Tsiribihina. The business passed through generations, and Akbaraly’s father moved the company to Antananarivo in 1972. Initially, Sipromad manufactured and sold wax in Madagascar, then diversified into soaps and candles.

After he returned from studies in the United States, Ylias Akbaraly began working in real estate and rose within the company.

Company sales total $100 million

With the expansion of capitalism in the country starting in the 1980s, more investment was possible and the company expanded its holdings significantly.

Today, the family group includes some twenty companies in different sectors as well as interests in other firms and has combined sales of $100 million.

Akbaraly, who aspires to make his home country a major trading hub on the Indian Ocean, said his hero in India is Mahatma Gandhi because he was able to elevate an entire nation and help it grow.

He said he also admires U.S. President Barack Obama as a symbol of global change.

He sees a bright future for his home country as a hub for trade between the Indian Ocean and Africa and a great place to invest, especially in tourism, agriculture, renewable energy and mining. As its political unrest comes to an end, the country, he said, is primed for growth.

“I dream that this beautiful island will become the dragon of the Indian Ocean and a hub for all Africa.’’

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Nigeria’s central bank intervening in currency market: traders

27 June 2016 Comments (0) Africa, Business, Latest Updates from Reuters

LAGOS (Reuters) – Nigeria’s central bank asked for bid-offer quotes from currency traders on Monday as it sold dollars on the interbank market to boost liquidity, traders said.

After abandoning the naira’s 16-month old exchange rate peg a week ago, the central bank sold dollars at an auction to clear a backlog of demand and keep markets active.

Currency traders said they had tightened the differential between bids and offers to 0.5 naira from one naira set when the currency was floated last week.

 

(Reporting by Chijioke Ohuocha; Editing by Catherine Evans)

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Western-trained talent returns to Ethiopia

27 June 2016 Comments (0) Africa, Business, Featured

Talented Ethiopians who grew up abroad are returning to their homeland, sparking hope and driving change in the once stagnant nation.

For a long time, Ethiopia has struggled as one of the poorest countries in Africa. 1974 saw the end of the iconic Haile Selassie’s rule, as the brutal Derg communist dictatorship seized power. The following years were harsh, and so began a long-lasting trend, whereby many of Ethiopia’s most skilled citizens left the nation to seek better lives in the western world. The once great kingdom languished under corruption, war, famine and drought.

Prior to the Derg regime, mass migration from Ethiopia was non-existent; sadly that was due to change. George Mesfin, an American-Ethiopian who fled with his family at the age of 14, summed up the situation by saying, “During the Derg years, for a while, everyone who could get out, got out.”

After the despotic government fell in 1991, it took a long time for the country to start making progress. However, members of the Ethiopian diaspora have started returning to their homeland, attracted by a growing economy and a more stable political situation. Making a difference seems to be the motivation that drives some to give up their comfortable lives in the western world. Many of the diaspora recognize the opportunity to use their western skills for the betterment of Ethiopia. The chance to become leaders who drive the nation forward resonates deeply within the souls of the patriotic. Those who have chosen to go back are helping to change the country in dramatic ways.

Returning Home

One of Ethiopia’s more famous returnees is Tadiwos Belete. Belete moved back to Ethiopia after developing a successful luxury spa business in Boston. He has since used his skills to create a thriving Ethiopian spa empire which employs over 1,500 people and focuses on using a solely local supply chain. In a 2013 interview Belete said, “The profitability is here, you can see it, you can feel it, you can touch it. But as well, as a human being you can make a difference here.”

While official figures are not available, Ethiopian economist Bisrat Teshome estimated that Ethiopians returning from other countries have injected more than $1 billion into the economy while starting over 2,000 new businesses. The influx of foreign-earned capital that comes with the returning migrants is a welcome source of investment for the country, where access to foreign currency and corporate investment are still lacking.

Western Influences

In the nation’s capital Addis Abbaba, a profusion of cafes, restaurants, fashion boutiques and other western-inspired businesses have appeared. Less visible, but no less important, the returning diaspora is investing in property development, agriculture, technology and a host of other sectors.

Kaldi's Coffee located in Addis Ababa

Kaldi’s Coffee located in Addis Ababa

However, Tesholme feels that improvements can be made “if that money was pumped into the industry sector, then it creates more jobs.” He went on to say that the manufacturing sector is underdeveloped in Ethiopia, and that manufacturing has the scope to create significantly more jobs for similar start-up costs, while also benefiting from foreign trade.

Ethiopia is also growing culturally through the return of its lost children. Some have found that their presence has positively influenced cultural attitudes towards workplace productivity and business best practices. Others have commented that Ethiopia has started adopting western standards of health and hygiene. Perhaps even more significantly, Ethiopia may stand to gain from the homecoming in a political sense. Shanta Devarajan, head of the Africa region at the World Bank, feels that the returnees have a positive role to play in political reform: “The diaspora might bring strengthened governance to African societies. These are people who have been outside the system and are able to observe it from afar, and that might actually strengthen government, something that we need so badly.”

Looking to the Future

Ethiopia faces issues such as a bloated bureaucracy, which is criticized as being slow to act and is an obstacle to international business. Additionally, the government is criticized for being ineffectual at a local level. Ethiopians who have experienced a more sophisticated system are well positioned to drive for reform and facilitate positive change.

The success of the diaspora is encouraging ever more ethnic Ethiopians to consider returning. In the last six months 2,600 have already made the trip home, a fourfold increase on the same period last year. If the new arrivals continue in the same vein as those who came before them, then Ethiopia’s reemergence on the world scene looks exceedingly likely.

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The end of OPEC?

26 June 2016 Comments (0) Africa, Business, Featured

opec meeting

OPEC’s refusal to impose production limits and an evolving global marketplace signal diminished clout for the oil cartel.

When OPEC ministers once again failed to agree on production limits to bolster oil prices in early June, it was yet another signal that the days of the oil cartel’s dominance in the global marketplace are over.

Members of the Organization of Petroleum Exporting Countries may continue to be important players in world oil markets, but “the cartel has lost its privileged ability to control global oil prices,” according to Global Risk Insights, which assesses political and business risk around the world.

OPEC nations, led by Saudi Arabia, traditionally have been the world’s swing oil producers, with enough reserves and daily production to control the price of oil. But that has changed in recent years as the United States, Russia and other smaller non-OPEC countries increased production.

Non-OPEC production rises

Total OPEC production is nearly 37 million barrels a day compared to non-OPEC production of nearly 57 million barrels daily, according to Global Risk Insights.

Despite waning influence, OPEC’s refusal to set production limits has played a major role in creating an oil glut, precipitating a two-year crisis that has seen the price of oil drop to as low as $26 per barrel earlier this year before climbing to $52 this month. That compares to prices of about $110 per barrel in 2014, when the crisis began.

Some OPEC nations, led by Saudi Arabia, have been willing to absorb the financial shocks of plummeting oil prices in order to preserve market share, reasoning that the low prices would drive competitors, notably U.S. shale oil producers, out of business.

OPEC has rebuffed calls to limit production by members Algeria and Venezuela, which have been hard hit by the slump.

Saudis take a financial hit

Saudi Arabia itself has not been immune to the financial impact of low oil prices.

The Gulf nation has spent more than $150 billion of its reserves in less than two years and posted a deficit of $98 billion last year.

Earlier this year, the Saudis borrowed $10 billion from a consortium of international banks, its first foreign debt in 25 years. The government also was considering asking creditors to take IOUs because it cannot pay its bills.

Oil rig at Bakken Formation

Oil rig at Bakken Formation

The OPEC strategy to let oil prices fall in order to wound its competitors has had mixed results, especially in the United States.

While 59 shale oil companies in the U.S. have filed for bankruptcy, production has dropped only slightly because of more efficient production. While financially troubled, the U.S. shale production should be able to rebound quickly once oil prices start rising, perhaps as early as next year.

Deal with Russia falls through

OPEC also came under fire from a top Russian oil executive in the spring, after a proposed deal between OPEC and Russia to freeze output fell through.

Igor Sechin, an ally of President Vladimir Putin, said tensions between Saudi Arabia and fellow OPEC member Iran have undermined the oil cartel. Saudi Arabia and Iran are vying for political dominance in the Middle East, and Iran, freed from Western economic sanctions, has vowed to significantly increase its oil exports.

“At the moment a number of objective factors exclude the possibility for any cartels to dictate their will to the market,’’ Sechin said. “As for OPEC, it has practically stopped existing as a united organization.”

Saudis pledge economic reform

Meanwhile, the Saudis have pledged sweeping economic reforms that signal their intention to go their own way on oil prices.

The reforms aim to diversify the country’s oil-dependent economy by increasing non-oil revenue to $141 billion by 2020. However, Saudi Arabia said it would maintain its output of 12.5 million barrels per day until 2020.

Deputy Crown Prince Mohammed bin Salman said his hope was that in 20 years the country would no longer be oil-dependent. The Saudi kingdom relies on oil for 80% of its revenue.

Saudi Arabia has vast oil reserves and has modernized production at a time when other oil producers including Venezuela and Iran have let their industries deteriorate.

At the OPEC meeting in early June, the Saudi oil minister also alluded to the waning clout of the cartel, saying that the market would determine prices.

“I think managing in the traditional way that we tried in the past may never come again,” Khalid al-Falih. Oil producers should “let the market forces continue to seek and find that equilibrium price between supply and demand.”

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Ushahidi: An African technology with global reach

25 June 2016 Comments (0) Africa, Business, Featured

Ushahidi

The mobile crowdsourcing platform, launched by Kenyan entrepreneurs nearly a decade ago, has been used by an estimated 90,000 projects worldwide.

Ushahidi, the mobile crowdsourcing software used to alert people of danger during civil unrest and to help aid agencies provide relief in disaster zones, is taking the world one text at a time.

Used in 159 countries and 31 languages, the software was developed and first deployed during post-election violence in Kenya nearly a decade ago. Today, Ushahidi estimates 90,000 projects worldwide have used the software, which is available as a free download.

Ushahidi, which means “witness” in Swahili, has grown from an ad hoc team trying to save lives in a crisis into a sophisticated nonprofit software development organization that aims to help solve global problems.

Its widely used open source crowdsourcing tool enables people to share information and interactive maps on their phones using SMS text messaging.

Platform documented violence

Four Kenyan technologists developed the software in 2007. As protests over disputed elections spiraled into violence at the end of that year, an estimated 1,500 people were killed in two months. In Nairobi, unwittingly walking into a neighborhood where violence had erupted could mean injury or death.

Enter the Ushahidi crowdsourcing software, which enabled residents to report flare-ups. The software mapped these reports to show people what areas they should avoid in real time, potentially saving hundreds of lives.

The initial deployment drew 45,000 users in Kenya who documented hundreds of incidents of violence that might have otherwise not been reported.

It was developed in a few days by an ad hoc group of technologists and bloggers “trying to figure out a way to gather more and better information about the post-election violence,’’ according to co-founder Ory Okolloh, who said the group believed the government and police were underreporting the number of deaths.

Ushahidi map

Helped aid workers after Haiti earthquake

The platform gained international prominence in the aftermath of the 2010 earthquake in Haiti, when it was used to identify and map locations where rescue and aid were needed. Within days, a live Ushahidi map had 2,000 individual reports that were mapped using satellite imagery. The platform was credited by aid workers with saving hundreds of lives.

Use of the platform has grown exponentially and has adapted to different situations.

While it is impossible to know how many people are using the platform because it is a free download, Ushahidi estimates it has been deployed for 90,000 projects with 6.5 million posts that have potentially reached 20 million people.

Deployed in media crackdowns, war zones

In Nigeria, Mozambique, Zambia, Colombia and Albania, groups used the participatory platform to detect election fraud. It is being used in Sweden to collect reports of anti-gay discrimination. It was also used during media crackdowns in Egypt during and after the Arab Spring. Organizations including the United Nations Office of Humanitarian Affairs have used it to coordinate aid activities in Libya, Syria and Afghanistan.

In Nigeria’s election-monitoring, one report found that use of the Ushahidi software increased voter turnout by 8% in 2011.

In a 2015 election in Nigeria, social media was a force in keeping the polling process transparent but the Ushahidi data-collection platform offered more credible information, according to Liesl Louw-Vaudran, a consultant with the Institute for Security Studies.

“Lively activity on social media also has a downside, however, with rumors of violence, cheating and slandering of opponents being rife on Twitter,” Louw-Vaudran said. “This is almost impossible to control, but data-gathering software like Ushahidi, can serve to provide early warning of potential election violence.”

Global software developer

With philanthropic support, Ushahidi has grown into one of Africa’s major software developers. Headquartered in Nairobi, it has global operations. Backers include the Omidyar Network, the Ford Foundation, the Knight Foundation, the MacArthur Foundation, Humanity United, Google and Cisco.

While the crowdsourcing software is a free download, organizations pay Ushahidi for support and customization, as well as other software products it has developed including data collection, management, visualization tools and enterprise systems.

Another Ushahidi project includes partnership in the Resilient Network Initiative, which trains community organizations to use open-source tools to engage with their local governments.

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