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South Africa Looks to Modern Mining for Youth Empowerment

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

youth in mining summit

South Africa’s mining industry to make use of non-traditional programs to empower youth

Even in 2016, the term “mining” brings to mind images of dust-covered coal miners with pickaxes. South Africa is rolling out a youth empowerment program in urban mining through its state-run mining and metallurgical entity, Mintek, that couldn’t be more different. Contrary to what its name suggests, urban mining does not involve any actual resource extraction. Urban mining is the slightly more glamorous and modern-day version of dumpster diving: this field re-appropriates pre-existing materials, such as recycled glass, into commercially viable semi-luxury goods.

At a recent South African conference, the Youth Mining Summit, government officials spoke about their desire to empower South Africa’s youth to look into the mining sector for jobs. The Youth Mining Summit occurred in mid-June, over the 40th anniversary of the infamous SOWETO Uprisings. To commemorate the historic youth uprising, South Africa dedicates each June to focus on youth development issues. This year, Deputy Director General of Mineral Regulation Joel Raphaela discussed the government’s efforts to encourage more young South Africans to go into the mining industry: “We continue to reach the youth through the department Learner Week Programs, where we create mining awareness by organizing mine visits around the country.” This sort of exposure, Raphaela hopes, will show young people from diverse backgrounds and educational qualifications that there are numerous job opportunities within the mining sector.

One Man’s Waste

Mintek Small Scale Mining & Beneficiation Program

Mintek Small Scale Mining & Beneficiation Program

An important component of this effort is the training and mentorship opportunities available to interested youth. Since 1934, Mintek has been South Africa’s leading mining and metallurgical research and development center. As South Africa begins to put a more visible emphasis upon black empowerment, Mintek is an integral part of a youth development program that looks to train young people in marketable metallurgy. Mintek emphasizes its newly branded urban mining program as the future for sustainable employment. A simple example of urban mining is the creation of glass beads from recycled bottles: Mintek provides training in all of the skills needed to turn glass bottles into beautiful jewelry with everything from different crushing techniques to the variety of ways to melt and re-purpose crushed glass. According to Mintek, “Urban mining presents numerous opportunities for young people to use urban waste to manufacture saleable products, without necessarily having a higher education qualification. The glass bead manufacturing process is a great example of this.”

Last year, Mintek provided 148 youth with practical training in partnership with the Mining Qualifications Authority (MQA), and the Department of Science and Technology. Thirty-six of these graduates have been placed in foundries across the country, where they continue to grow their theoretical and practical skill sets in the metallurgical field. Unemployed graduates from previously disadvantaged groups have the opportunity to receive further training in the field of occupational hygiene, surveying, mining, electrical and mechanical engineering. Not only is Mintek providing hands-on training, but it is working with local governments to set up training centers in the Northern Cape. Two such centers were established in Upington and Prieska, where students can get practical training for making jewelry from locally-mined semi-precious stones.

A Diamond in the Rough

South Africa’s mining stretches beyond metallurgy and re-appropriation of urban waste to the most glittering of all gems: diamonds. After the 2015 launch of the South African Young Diamond Beneficiators Guild, a collective of predominantly black-owned small and emerging diamond manufacturers, young adults were accepted into training programs to learn the cutting and polishing techniques employed to refine rough diamonds. 25 of the young trainees were accepted into a two-year training program based in Italy, but will also travel to Switzerland to learn about the technical art of watchmaking.

A watchmaking teaching curriculum is currently being developed in South Africa. Once it is completed and through the approval process, South Africa would be able to teach the special skill set for the first time in its history.

Digging Deep to Lift Up Youth

All of these initiatives have the same goal: to empower youth with marketable skills that will not only provide them with sustainable income, but will allow them to participate in the global economy. Training programs are blossoming in everything from urban mining to watchmaking, and it seems that this is only the beginning. As Raphaela said, the “economic empowerment of young people is not an option, but a national imperative.”

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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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Stock Talk: South Africa’s Newest Market

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

Johannesburg Stock Exchange

South African company Zar X has been given license to open a new stock exchange market, the first new market in more than 100 years.

For many in Africa, the world of stock exchange and brokerage is an elite realm for the wealthy and well educated. The outside fees alone, paid to brokers and investment firms, are enough to deter a huge proportion of the world’s population, not to mention the financial literacy required to make informed trades. In developing countries, where stock exchanges may be inaccessible for all but a small portion of the population, this is particularly true. Many stock exchanges are centuries old. South African company Zar X is changing the scene: as of September 1st, they are expected to launch trading in a low-barrier, low-risk market for the first time in the country’s history. This exciting development is expected to open up the world of stocks to a much wider demographic, enabling less-wealthy South Africans to participate in the global economic market.

Taking Stock

In March of this year, Zar X was granted a stock exchange license by the Financial Service Board, the first company to have received one in more than a century. Founder and CEO Etienne Nel says that Zar X’s “initial focus will be on low-hanging fruit – the companies that the Johannesburg Stock Exchange (JSE) cannot list, like the traditional over-the-counter market and the related shares around this market.” For the last 120 odd years, the Johannesburg Stock Exchange (JSE), South Africa’s first and previously only stock exchange, has offered T+5 and T+3 settlements, or trades that take five or three days, respectively, to clear into an investor’s account.  Zar X will be the only exchange to offer T+0 settlements, or same day settlements.

The more complex trades (T+5 and T+3)  will still be offered on the JSE, but for restricted trades and mid-size company listings (companies worth between US $36million and US $360million), Zar X will be the go-to listing. These companies have different rules for listing shares than larger companies, and are therefore more accessible for individuals without investment experience. Zar X “will offer simple, fast and affordable platforms for corporate listings and share trading, with strong focus on the market in restricted equity offerings, primarily black empowerment securities.”

An Exchange for the Everyman

According to their website, “ZAR X is a platform that lets everyday South Africans transact shares quickly, cheaply and conveniently, even if they have never formally invested money or opened a bank account before.” For the millions of South Africans without bank accounts, this is a potentially life-changing opportunity. Zar X will offer businesses a flexible, transparent and affordable way to list their restricted or limited share offerings through its three sections: a main board for company listings, an “over-the-counter” stock trading business, and an investment products market. Zar X differs from the JSE for a variety of reasons, including that it will allow shareholders to invest without custody fees. Custody fees are one of the barriers to people from lower-income households to enter the stock market: these are fees charged by the individual investor for handling a clients’ money. Since Zar X allows investors to work directly in the market, there will be no broker to collect these fees. This, along with the innovative trading and company listing regulations, is a game-changing move by Zar X. It has the potential to make trading accessible for millions of people who were previously prevented from participating.

Trading for Empowerment

Zar X is expected to have a very positive impact upon South Africans for a variety of reasons. This new opening in the market will allow a greater diversity of tradeable shares, thus increasing competition between companies that were previously without representation. Aside from the numerous economic impacts, Zar X stands to have quite a social impact as well. Nel was inspired to create Zar X out of a desire to open up the stock market to a wider group of people. This project will not only increase financial literacy for South Africans with little to no financial experience, but may also be an important empowerment project for South Africa’s working class. Financial autonomy is a large component of self-confidence, and by increasing the scope of representation within the global market, South Africans will be able to view themselves as financially capable global citizens.

 

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Standard Bank joins rush to mobile banking

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

Africa mobile banking

The largest bank on the continent has launched a pan-African application in five countries that enables financial transactions across borders.

The largest bank on the continent is rolling out a pan-African banking application as it shifts its business toward mobile.

The action by Standard Bank – African’s largest bank by assets – reflects a growing trend of financial institutions moving to mobile financial services that so far have been dominated by telecoms.

Standard’s mobile banking has been doubling year over year, according to Peter Schlebusch, the bank’s chief executive for personal and business banking.

Standard has launched the mobile application in South Africa, Namibia, Botswana, Uganda and Ghana and plans to launch in Nigeria, Kenya, Zimbabwe and Zambia later this year.

The app reflects a significant investment by the Johannesburg-based bank to give customers convenient access to their accounts regardless of their location, a bank representative said.

Transactions can cross borders

Standard Bank app

Standard Bank app

Adrian Vermooten, head of Africa Customer Channels for Standard Bank, said the app is one of the first in Africa that enables transactions across borders.

The app takes advantage of sophisticated smartphone technology, including biometrics. In the future, features including real time payments, online account opening and other services for individual consumers or businesses will be added to the app.

The app reflects the bank’s goal of becoming a “universal bank” for Africa, Vermooten said. The bank, with global assets of about $165 billion, operates in 20 markets across the continent.

“We’re trying to be really focused on Africa and take out the friction of dealing in Africa,” Schlebusch told Forbes, noting that the new app will enable customers to execute transactions across borders.

“The pan-African app will enable customers to view the whole bank regardless of their geography or what kind of customer they are,” he said.

ATM transactions decline

The bank last year processed more than 800 million transactions worth nearly $30 billion through its banking application while in-person branch and ATM transactions shrunk to less than 5 percent of all transactions, Schlebusch said.

Standard’s experience underscores two shifts taking place on the continent. One is the rapid trend toward consumer use of mobile technology for financial transactions. The other is the move by banks for a share of the market previously dominated by telecommunications companies.

In 2014, mobile financial transactions generated $656 million in revenue in sub-Saharan Africa, according to the research firm Frost and Sullivan ICT. That amount will nearly double to $1.3 billion by 2019, Frost and Sullivan predicted.

According to the World Bank, growth in mobile banking in Africa has outpaced other regions in which it operates. Sub-Saharan Africa was the only region in which the World Bank operates where more than 10 percent of adults have a mobile banking account.

Meanwhile, one expert said that African banks are taking the lead globally in ensuring security of mobile financial transactions.

Schalk Nolte, chief executive officer of Entersekt, said African banks are placing security at the center of the app will add mobile development, setting an example that other banks can follow.

Globally, banks have led development of mobile banking. But in Africa, telecoms have been the major players in mobile financial transactions because far more Africans have mobile phones than have bank accounts.

More phones than bank accounts

According to the World Bank, 40 percent of Africa’s 1.4 billion residents have a mobile phone while less than 25 percent of the population has a bank account.

But banks like Standard are working to change that. A top East African bank announced plans to enter the market while banks in Cameroon and Mali are also trying to tap into the continent’s rush to electronic payments.

In Kenya, Equity Bank, the country’s largest in terms of number of customers, is providing customers with SIM card overlays that enable them to securely access their accounts on their phones.

In Nigeria, GT Bank is partnering with Etisalat Nigeria, one of the country’s larger mobile operators, to create a savings account that can be opened on a mobile phone.

Pan-African Ecobank is partnering with the telecom Orange Cameroon to enable customers to transfer money between the two services. The companies have launched the service in Cameroon and Mali and expect to offer it to Ivory Coast, Guinea Conakry and Niger in the future.

South Africa presents a contrasting example. In that country, where 75 percent of the population has a bank account, M-Pesa failed to take hold and folded its operations earlier this year.

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Gambling explodes on the continent

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

Grandwest Casino in South Africa

As tourism increases and many Africans raise their standard of living, several countries on the continent are experiencing explosive growth in online gambling and development of casinos.

South Africa, Nigeria and Kenya host booming casino and online gambling operations.

South Africa, with the most developed economy on the continent, also has its largest gambling market, with more than $1.5 billion in annual revenue.

The nation’s online sports gambling sites generate significant revenue, and mobile online gambling is exploding as more and more people use their phones for transactions. Widespread internet connectivity has also driven the boom in online gaming in South Africa.

Online casino games banned

At the same time, the South African government earlier this year rejected a proposal to expand online betting options to include poker and other casino games.

Proponents argue that international gambling sites are serving South Africans with those games and it would be better if the revenue stayed in the country.

However, South Africa’s Department of Trade and Industry has steadfastly opposed an expansion, citing “social ills associated with gambling, especially online gambling.” The government levies fines of up to $865,000 and prison terms of up to 10 years for illegal gambling. In July, the trade department took a step further and called for development of ways to prevent access to online gambling on sites outside the country.

Casinos upgrade, expand

Even as the nation’s economy slows, South African casinos are attracting major investments.

Tsogo Sun Holdings Ltd., Africa’s largest casino operator, is positioning itself for an economic recovery in South Africa.

Tsogo, based in Johannesburg, has upgraded two of its largest casinos and will spend nearly $140 million to expand a Suncoast gaming and entertainment site in Durban. The company also hopes to build a new casino in Cape Town to replace a smaller one.

The investments may create surplus of space in the short term, but the company is betting on growth in the near future, according to Chief Executive Officer Marcel Von Aulock.

“We’ve done all the work, so we are waiting for the uptick to come,” Von Aulock said.

The company gets about two-thirds of its profits from gaming and the rest from its hotels. Tsogo derives 90 percent of its profits from South African properties, which have continued to grow in revenue despite the country’s economic slowdown.

Revenue to top $2 billion

Gambling revenue in South Africa in 2014 increased to $1.5 billion, and Price Waterhouse Coopers projects it will top $2 billion by 2019.

Price Waterhouse Coopers is also projecting significant growth in gambling markets in Nigeria and Kenya.

Nigeria’s gambling industry produced about $46 million in revenue in 2014, increasing by 17 percent over 2013. While the growth rate is likely to slow, Nigeria still will see an annual growth rate of 8.5 percent and the sector will produce nearly $69 million in revenue by 2019.

Online casino games legal in Nigeria

Federal Palace Hotel & Casino in Lagos

Federal Palace Hotel & Casino in Lagos

Unlike South Africa, Nigeria’s online gambling platforms offer casino games as well as sports betting, which is growing rapidly. Most dice games, including roulette are banned.

Sun International, which operates more than three dozen hotels or casinos on the continent, runs three casinos in Nigeria, including Palace Casino in Lagos, which has slot machines and table games including roulette and blackjack.

In Kenya, gambling accounted for $20 million in revenue in 2014. That reflected a 7 percent increase from 2013 and followed an increase of 11 percent from 2012 to 2013. Experts attributed the slowdown to the imposition of a 20 percent tax on gambling as well as the launch of a national lottery. Price Waterhouse Coopers projects revenue will reach nearly $29 million in Kenya in 2019, reflecting an annual growth rate of more than 7 percent.

Kenya probes industry

Kenya’s National Assembly in August launched an inquiry into the casino industry with a focus on tax compliance and management of tax revenue from the industry, as well as allegations of money laundering.

Lawmakers expressed concern that the country needs a greater regulatory industry to monitor the burgeoning industry.

Kenya is home to more than a dozen casinos while online betting services include both sports gambling and casino games.

Mauritius also has more than a dozen casinos, including the Treasure Island Vegas Casino near the airport, a popular attraction with tourists as well as local elites. Gambling anchors the nation’s thriving tourism industry, which drew more than 1 million visitors in 2014, according to the World Bank.

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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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“Spinach king” turns healthy eating into a business

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

Spinach King

A young South African entrepreneur sources local gardens to produce popular, nutritious baked goods.

A young South African entrepreneur has built a business in healthy baked goods that has earned him the nickname of “Spinach King.”

Lufefe Nomjana, 28, produces spinach-based products including bread, muffins and sandwiches for retail outlets around Cape Town. Nomjana also offers delivery service via bicycle to local offices and consumers who want healthy meals.

He launched the business in 2012 with only 40 Rand (less than $3) in his pocket. Fast forward to 2016 and he operates Espinaca Innovations, which includes a bakery in a renovated shipping container, a café and bakery, and plans for a large-scale bread factory to open in August.

Recognized by the South Africa Breweries Social Innovation Awards in 2014, Nomjana used about $6,000 in prize money to expand his business.

A lesson in entrepreneurship

But the young businessman insists that entrepreneurial thinking has been more important than money on his path to success.

“You’ve got brains and intellectual capital. That will actually open many doors for you,” he said.

Nomjana was just out of school and in his early 20s when he embarked on a business career. He was selling clothes door-to-door but realized he needed to learn more about business and finance if he was going to start a successful business.

“Although I had the ambition and discipline to be self-employed, things weren’t going well,” he said. “I didn’t know enough about stock control and cash flow.”

A five-month course in entrepreneurship taught him that he could build a business while helping people in his community, providing them with access to healthy food.

Spinach king in action

Spinach readily available

That is when he started thinking about spinach, which was growing in abundance at a community garden where he volunteered in Cape Town’s Khayelitsha Township, where he lives. “Spinach grows easily almost everywhere. It’s one of the most nutrient-rich vegetables with many healthy side effects.”

He looked up recipes on the internet, persuaded a neighbor to let him use her oven and his healthy, low-carb spinach bread was born.

He was unable to find investors for his idea. But he went ahead, using the neighbor’s oven at nighttime in exchange for paying for electricity and giving her a supply of bread.

Nomjana baked four loaves a night, then eight and then 16, the most he could produce in his neighbor’s oven.

Building a brand

Profits were small. But while he wasn’t making a lot of money at first, he was building a reputation. Soon, he found he could not keep up with demand.

In the beginning, “it was not about profits. I was building a brand, and educating people” about good nutrition, he said.

A breakthrough came in 2013, when he asked Spar, a local retail chain, if he could use their ovens in exchange for supplying their stores with his baked goods. His production increased dramatically to 200 loaves a day. In addition to Spar, he could supply oven-baked spinach products to local offices.

He soon hired a small sales staff and – eager to speed up deliveries – launched a crowdsourcing campaign to raise money for five delivery bicycles.

By the end of 2013, Nomjana had saved nearly $3,000. With that money and his prize from the SAB Social Innovation competition, he bought his own baking equipment and renovated a shipping container as a bakery.

In 2016, Nomjana produces about 500 loaves daily of his popular low-carbohydrate “banting bread” along with other baked goods. He buys organic spinach from local farmers.

Plans to increase production four-fold

He believes he can increase production to 2,000 loaves once he opens a factory later this summer in nearby Stellenbosch.

At his new café, which also contains a bakery, customers can buy healthy, affordable meals such as gluten-free spinach bread and fresh butternut soup for about $1.

His experience has prompted Nomjana to advise other entrepreneurs to first identify resources they have – in his case locally grown spinach and a neighbor with an oven – before looking for investment.

It may make more sense to just get started with the resources available, the way he did.

“The first capital that you need, more than money, is intellectual capital.”

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Tanzanian entrepreneur aims to light up his country with green energy

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

sunsweet solar

George Mtemahanji’s Tanzanian startup, Sunsweet Solar, looks to bring clean energy to its nation’s poorest people.

For 70% of Tanzanians, the only way to light up their homes after sundown is with a small kerosene-powered lamp. This shortage of electricity does not only affect people in their homes, but businesses and schools too. It was something that 22 year old George Mtemahanji understood well, as he had grown up in the small, rural town of Ifakara where kerosene was the only option for light after dusk.

Mtemahanji left his home in 2003 at only 9 years of age, as his mother took him to Italy in search of new opportunities. However, 8 years later he returned home, and upon seeing that the same energy problems still afflicted his hometown, he decided to find a solution.

The spark that can change lives

Mtemahanji was not only struck by how little things had changed in his place of birth, but also by how significant a lack of electricity was to the prospects for development. Mtemahanji explained, “Electricity supply is really important for the development of a country. Without electricity, New York or Johannesburg would just be villages – they’d be like Ifakara.”

At the time of his return, Mtemahanji was studying to be a technician in renewable energy, and the power situation within his home town immediately struck him as a problem that his training could help to solve. Mtemahanji said, “We have a lot of sun and it was really very strange that no one was doing something with solar energy.” The inspiration for Sunsweet Solar had been created, so Mtemahanji returned to Italy to discuss his ideas with a fellow student, Manuel Rolando.

By 2013, extensive research into solar energy in Tanzania had revealed that many locals simply did not trust solar energy as a reliable source due to poor quality installations that had proved inconsistent. However, Mtemahanji was confident that Rolando and he were capable of designing efficient, cost effective solar powered systems. The duo began approaching companies for funding, and found a Swiss company planning to build a photovoltaic plant (solar power plant) right in Mtemhanji’s hometown of Ifakara. The two young entrepreneurs offered to design and construct all the technical components of the plant for free, and their pitch was accepted.

Sunsweet Solar rises in the east

Mtemahanji’s voluntary work on the Swiss photovoltaic plant was a huge success; the plant is the largest of its kind in the Kilombero district, and it powers 200 lights, dozens of computers and can store 3 days’ worth of power. Moreover, it now proved to any other investor that Mtemahanji and Rolando had the requisite skills to complete their grand plans.

Mtemahanji was committed to ensuring that his home in East Africa would begin to finally see a rise in solar power, which would drive forward development, and would save money for the poorest people of his country. Sunsweet Solar was registered within days of the completed project in Ifakara, and they quickly established a partnership with a German company, Fosera, to provide household kits to rural districts.

Sunsweet Solar aims to not only build energy solutions for much of Tanzania, but to do so in a way that is cheaper than the current alternative of using kerosene lamps.

Mtemahanji discussed the 70% of the country that have no reliable electricity, remarking, “We can give them electricity for 25 years for only $79… It costs less than $0.30 per month; today a liter of kerosene costs $1.10. That means the people in rural areas spent 73% more with kerosene per month than with our solar system.”

Access to electricity can bring greater productivity in the workplace, and the ability to improve education. Since Sunsweet Solar installed solar power to Benignis Girls Secondary School, the school has seen exam performances increase from 18% to 83% in just 1 year. Something as simple as being able to study during the evening is a part of life that many people will have never had to consider.

In 2015, George Mtemahanji won the Anzisha Price, an award for young African entrepreneurs, and despite his success he is still only 22 years of age. With plans to roll out a loan system, so that customers can buy installations in installments, the future for both his company and Tanzania looks increasingly bright.

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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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