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No place to hide: Nigerian government cracks down on corruption.

22 November 2016 Comments (0) Africa, Featured, Politics

Earlier this month, several of Nigeria’s top judges were arrested in a stunning sting operation. Since the arrests, details have come to light that hold major implications for Nigeria and the direction that the country is headed.

Nigeria’s Department of State Service (DSS) stormed the homes of some of the country’s top judicial figures. The DSS found significant sums of foreign and domestic currency, alongside evidence of bribery. Alarmingly, two of the arrested judges are from The Supreme Court, the country’s highest judicial office.

The two Supreme Court judges have been named as Sylvester Ngwuta and John Okoro. It has since come to light that the DSS seized close to US$ 900,000 from their homes. The investigation has also allegedly uncovered that Ngwuta, Okoro, and others hold hidden properties, which should be beyond their means as judicial officials.

Corruption an obstacle to progress

Nigeria has long been renowned for systemic corruption. This unfavorable reputation has naturally been a source of concern in the international community. Economically, the perception of corruption has deterred foreign investment. Normal Nigerians, frustrated by corruption and unscrupulous official practices, have been clamoring for change

 Last year, Muhammad Buhari ascended to the presidency, promising to root out corruption in all its forms. His administration has made good on its pledge by bringing charges against leading businessmen and politicians. However, many of these cases have stalled in court, and critics have suggested that rampant corruption within the judiciary makes it exceedingly difficult to actually convict powerful individuals.

Arrests uncover web of conspiracy

The recent arrests of these senior judges represent an attempt to deal with the judiciary and pave the way for further anti-corruption measures.

In the case of Ngwuta and Okoro, the allegations are particularly serious. It is alleged that Ngwuta traveled to the Middle East to obtain a substantial bribe, which he then shared with Okoro and others. The plot becomes even more insidious, as recent information obtained by Sahara Reporters links the bribe to State Governor Nyesom Wike.

Allegedly Wike paid the bribe in order to obtain a favorable verdict in his election case, which is currently under review by the Supreme Court. It would appear that the State Governor is at least involved in some capacity. He swiftly appeared with his staff at the scene of one of the DSS raids and argued with officials. In the commotion, an unnamed judge was said to have escaped.

Applause and tenuous protestations 

It is interesting to note that Wike is a prominent member of the People’s Democratic Party, the official opposition. Critics have said that corruption cases are only being wielded against those who are out of favor with, or in direct opposition to the administration.

The judiciary itself has argued that the DSS doesn’t have the authority to carry out raids and that investigations into the judiciary are fundamentally unconstitutional. However, such grievances are ringing hollow in the ears of most Nigerians, who are glad to see decisive action being taken. The protests sound more like the desperate cries of an archaic and self-serving class, which has realized it is under bitter siege.

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Honey: Africa’s Golden Ticket?

20 November 2016 Comments (0) Africa, Agriculture, Featured

Stability is not a word often used to describe the status of small-scale farmers, particularly not those in Sub-Saharan Africa. African farmers are especially vulnerable to variable climates: should a rainy season arrive early or late, be heavier or lighter than anticipated, an entire community’s livelihood can turn to dust or be washed away in a flood. At the recent African Honey Exhibition, experts discussed the viability of beekeeping and honey production as not only a key to eradicating poverty for farmers, but as an industry that has a multitude of positive externalities, such as pollination.

The Buzz Around Town

Small scale investment has gained more traction as a viable development tool in recent years: from micro-credit enterprises in Bangladesh to projects focusing on African farm collectives, more money is being given in small scale projects than ever before. Agriculture is a challenging area in which to invest, particularly in a region now characterized by unpredictable weather, political turmoil and lack of connectivity between urban and rural areas. Beekeeping, or apiculture, has recently been identified as a potential agriculture venture that can thrive in the

African climate: in a 1990 paper for the Food and Agriculture Organization, Stephen Adjare wrote that beekeeping and honey production had long been occurring in Eastern Africa, but that they made use of antiquated techniques that inhibited expansion or growth. His points as to why Africa is ideal for beekeeping and honey production are now being echoed by development experts and economic advisors around the world.

Tropical apiculture is not only inexpensive, but it allows farmers to be self-reliant. It is not dependent upon the importation of expensive foreign equipment or experts, it does not require a beekeeper to own large amounts of land, as hives can be created on very small plots or even in a garage or shed, bees positively impact the surrounding environment through pollination and the semi-arid climates that render other crops fallow are ideal for beekeeping. According to one source, African bees are better for pollinating that European or American bees. That is because African bees emphasize colony growth over honey production, which necessitates more pollen to feed to bee larvae. In this way beekeeping may even be an excellent complementary practice for farmers with crops that require pollination, such as fruit trees.

The New Gold Standard

Kenya is an interesting example of the potential for honey production. While it is not the continent’s largest producer, it is the largest consumer. Demand exceeds the country’s production, and so tons of honey are imported from neighboring Tanzania each year. The production gap is so large, in fact, that international exportation is yet to be a viable option, despite the high demand of the United Arab Emirates for African honey. This is due in part to the small-scale nature of Kenyan apiculture.

There are currently no commercial beekeeping or honey production operations in East Africa. Small-scale farmers currently manage the sector, which has both positive and negative aspects. The most obvious positive aspect of this is that more individual farmers profit– there is no large company taking a portion of their profits. The downside is that the industry is not operating at maximum efficiency given the gap in production ability. It seems unlikely; however, that consolidating wealth produced in this industry into the hands of a corporation would prove at all beneficial for the average African farmer who turns to beekeeping as a mode of poverty prevention.

The Future of African Honey

In a 2012 video with more than 35,000 views, modern techniques for African beekeepers are explored through the development of modern hives by a local company. This video demonstrates the sustainability of hive production: not a single aspect of beekeeping is wasted, meaning fewer dollars lost in the production of new colonies. Should apiculturists be enabled to engage in modern beekeeping techniques, this could greatly benefit their honey production and greater pollination?

Unfortunately, it does not seem that African bees are immune to illness. Bees around the world have been plagued by a parasite that cut global production in half. Unlike the agriculture branches of European or American governments, there has yet to be a concerted response to this threat by African governments. Responding to such threats require expensive scientific experiments and investment.

The Money is in the Honey

Investing in modern beekeeping techniques for small-scale African farmers has enormous potential. Doing so provides economic security for individuals and their families, and has positive externalities for surrounding crops, such as fruit trees or flowers, both of which are large export industries on the continent. Investment requires careful planning; including contingency plans for occurrences such as colony die off due to parasites or extreme weather. That being said, honey may just turn out to be the golden ticket out of poverty for African farmers.

 

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Why female leadership is so important in Africa

18 November 2016 Comments (0) Africa, Featured

Across Africa, women are ascending to roles of prominence and leadership. This phenomenon is encouraging. More women attaining top positions in both the political and business spheres are positive indicators of progress and social inclusion. Women are needed every bit as much as much as men, in shaping the continent’s new image.

Women for Africa

Earlier this year, at the New African Women Forum, many of Africa’s foremost females were in attendance to recognize exemplary leadership, and discuss the obstacles to gender equity across the continent. The highly regarded former World Bank Africa VP, Oby Ozekwezili was one of the key speakers at the conference. Ozekwezili said: “When women participate in the decision-making process at every level, there is a higher propensity of positive outcomes.”

Well known for her achievements as former Minister of Education in Nigeria, her focus on ethical leadership has led her to influential board positions with organizations such as the World Wildlife Fund and The Centre for Global Leadership. Additionally, in the wake of the abduction of the Chibok schoolgirls, Ozekwezili was one of the driving forces behind the viral #BringBackOurGirls campaign. As one of the most formidable female leaders on the continent, it’s no surprise that she scooped the New African Women Award for Contributions to Civil Society.

African women tackling the big issues

Women like Ozekwezili are no doubt consummate role models. However, the big problem is that in Africa, there are still too few of her kind. Statistics show that women are woefully under-represented in African politics. Across the continent, women account for a mere 19.7% of total parliamentary positions. Additionally, these figures are skewed by the likes of South Africa, Rwanda, and Mozambique, who have substantially higher levels of female inclusion.

Outside of politics, women are being underutilized in the African workforce. The United Nations Development program has estimated that Africa lost 61% of potential development due to gender equality. Another cause for concern is the fact that only 20% of African women have access to a bank account. This means that the vast majority of women are going without the financial security that comes with being connected to the formal economy through banking.

Culturally there are big obstacles to overcome. African society favors the education of boys over girls, especially in lower income areas. When it comes to cultural gender expectations, African women face an uphill battle against the notion that their traditional place is as child-raiser and housekeeper. In a similar vein, outdated ideas about women’s innate ability are dangerous and need to be dismantled. Prominent Ghanaian lawyer and politician Betty Mould-Iddrisu said “Since there is an ingrained skepticism towards women’s ability to succeed in Africa, it means, simply put, that women leaders must work doubly hard. The path to success is littered with obstacles and it takes huge doses of courage and determination to stay the course.”

A movement is growing

The New African Women Forum was designed specifically to tackle issues such as these. Bringing the current generation of leaders and innovators together is critical to generate discourse and develop coherent strategies. This forum is part of growing movement of both men and women, determined to break barriers and usher in African gender equality. South African Dalphne Mashile-Nkosi embodies the progress women are making. Nkosi, a former African CEO of the Year winner, is the head of billion dollar mining giant Kalagadi Manganese. Nkosi is a proponent of affirmative action and is striving to staff 50% of her corporation with female talent.

She said: “Figures show that when women earn, 90% of it goes back into their society, their children’s education or the local community.” However, not all female African leaders agree on such policies. Valentine Rugwabiza, a renowned Rwandan politician and former Deputy Director General of the World Trade Organization is in favor of meritocracy. She explained: “By having quotas it may seem like they are in their position, not because they deserve it, but because some international statistic requires it.”

While there may be some disagreement between heavyweights such as Rugwabiza and Nkosi, there is no doubt that recent years have seen an increasing emergence of strong female role models.

Women are initiating change in a myriad of sectors, and that’s a cause for great celebration.

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Ibrahim Hissein Bourma is the 27 year old millionaire with big dreams for Chad’s future.

16 November 2016 Comments (0) Africa, Business, Featured

Ibrahim Hissein Bourma is only 27 years old and yet, after only 7 years in business, he already runs 3 companies with a value of around $30 million. Bourma was born and raised in Chad, and a passion for his home country is central to his business ethos, as he aims to create more than just a personal empire, but to help his nation prosper too.

3 companies inside 7 years

Bourma was born and raised in Chad, but he went to France in order to pursue higher education, graduating in 2009 with a Bachelor’s Degree in Accounting and Finance. Although Chad is not a country with a well-established history of entrepreneurship, Bourma was determined to return to his homeland in order to begin his business career. After graduation, Bourma set up his first company in Chad – Umm Alkheir Construction – which later became known as Imperial Construction. The move into construction was one that seemed logical, as Bourma’s father runs Chad’s first ever construction company. By 2014, Bourma decided to set up a second company, operating in a field that he was personally passionate about – cars. Iby Motors turned a hobby into a thriving business, as Bourma began importing automobiles of numerous types to sell within Chad, while also offering affordable maintenance at the largest garage complex in Chad.

Diversification of interests paid off, and his success encouraged Bourma to move into a third arena of enterprise – the fashion industry – as he launched Iby Fashion. Iby Fashion offered central African nations imported European fashion brands, in much the same way that Iby Motors offered car enthusiasts in Chad the opportunity to buy imported automobiles. As the 3 companies that Mr. Bourma created continued to flourish, he created the holding company Oum Alkheir Holding, of which he is the CEO. Oum Alkheir Holding had an annual turnover in excess of $30 million by last year, and Bourma is driven to continue growing his businesses, and providing Chad’s people further opportunities for work.

The future for Bourma and Chad

Mr. Bourma has made major decisions in his personal life, but even some of these are linked to his burning desire to open up more markets within Chad. Bourma is married, and after his wife gave birth to their first child he moved himself and his family to Dubai. However, despite this change in his living arrangement, his commitment to Chad’s economic development remains unwavering. Bourma explains that the main motivation behind his move was to create business connections that could benefit Chad, saying that his thought process was “If I move to Dubai, it is (with) the aim to make…relationships in the midst of international investors.”

Bourma already plans to open an Iby Fashion store in both Dubai and Montreal, as Iby now creates its own range alongside stocking established fashion labels. While 80% of Oum Alkheir Holding’s profits currently come from the Imperial Construction wing of its operations, Bourma sees opportunities to create new projects that will create more jobs within Chad. Bourma says that he is open to any proposal for new business ventures in Chad, and that he carefully looks at any new idea from prospective collaborators. Moreover, Bourma is convinced that entire areas of industry can be better organized to change Chad’s fortunes. With his existing interests in fashion, the textile industry is one that stands out, as Chad is a net exporter of cotton. Bourma states that, “While the stock is at hand, Chad has no textile industry.”

As Chad’s economy improves, Bourma sees openings in numerous areas, explaining that he wants to “revive industry in Chad” and that “everything remains to be done, in textiles, in food processing, leather etc…I’m open to new ideas and people…I like the risk, but only when controlled and calculated.”Bourma already employs 600 people, and if his ambitions for new ventures are met, than this number should grow rapidly, bringing new employment and revenue to his country of birth.

Ibrahim Hissein Bourma is already a renowned name within Chadian business and industry, but at such a young age he has years in which to make an even grander reputation for himself and his country. Only 7 years into his career, he has already created firsts within Chad’s economy, and his determination to continue in this vein should provide exciting times ahead for commerce in one of central Africa’s often overlooked nations.

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Vangsy Goma – the entrepreneur behind an African Uber.

14 November 2016 Comments (0) Africa, Business, Featured

Vangsy Goma is the young man behind Africab, the latest Uber style taxi service within the continent of Africa. Goma himself is only 31 years old, but his company has already had an immediate impact in the Ivory Coast, and his fresh approach to the industry could reach far further than its launch site.

From Africa to Europe and back again

Vangsy Goma was born in the capital of the Republic of Congo, Brazzaville, into a powerful Congolese family. Goma’s grandmother is the wife of Congolese president, Denis Sassou Nguesso, and yet his privileged upbringing did not dent an enthusiasm to create changes in his home continent. Goma went to pursue further education in France, and eventually graduated with a degree in management and marketing from France’s IDRAC institute. Goma decided to return to Africa, and his home country, where he began working as a project manager for Congo’s Assistance Foundation – a body that focuses on spreading access to education for children within the Lower Kouilou region. By 2012, Goma changed path, and began working for the oil company CNPC as a commercial services manager; before another move into a higher position, as commercial director, at Congo’s MBTP construction company. It was during his time with MBTP that Goma devised his plan for Africab, and he began talks with professional colleagues and the investment group, CEMAC, about his vision.

The creation of Africab

While Goma could have easily avoided the stress and financial risk that comes with starting up your own business, nothing in his background (or successful early career) appears to have reduced his entrepreneurial spirit, or desire to help his own people. Goma says that it was a conversation with a friend, and fellow entrepreneur, Vérone Mankou, that led to him formulating his idea for Africab. Mankou is the man behind a highly successful Congolese mobile phone company, VMK, and Goma explains that his business model was one that inspired him, because “he turned great local demand for imported products into inclusive local economic growth. VMK means new jobs and new skills for Africa.”

Goma felt that this was something he could also use as a model to rectify a problem that he had noticed on a visit to the Ivory Coast’s capital city, Abidjan. Goma explained, “Africab is a ‘startup’ born from the observation…that African urban populations had new transportation needs.” Goma observed that many African nations had a rapidly growing middle class, and that existing transport systems were unreliable, unsafe or lacking modern facilities that many consumers desired. The initial target audience was the men and women of the professional middle classes, which is why Goma proudly describes how “In our taxis, we have electronic tablets, on which you can check emails and city guide. There is also a 4G network available on board.”

Abidjan is only the beginning

Despite being Congolese, Goma chose Abidjan as his launching point, due to “purely economic reasons and opportunities”, as the city (and Ivory Coast as a whole) has a well-established middle class, with stable growth, and a high demand for new services. However, Goma’s goal is to revolutionize transport across sub-Saharan Africa, and he is eager to bring Africab to his hometown of Brazzaville as well as many other destinations.

While Abidjan’s relative prosperity was ideal for the company’s launch, Goma wants his company to not only work for the customers, but also for its employees. Unlike Uber, and other established taxi apps, Africab owns all of its cars, directly employs its drivers, and sees long-term job creation as one of its core components. Goma says he wants it to be a truly pan-African company that provides its staff with training, and opportunities to develop their potential.

Since Africab launched in February of this year, the fleet of cars has extended from 30 to 50, and has already ordered 120 more vehicles, such is the demand! Goma states that 10,000 potential customers have downloaded the app, and he recently signed a deal with the Beninese Company, MIG Motors, which will be responsible for rolling out the service in Benin. Vangsy Goma is still only 31, but his success looks likely to continue, and investors will be watching his progress with interest.

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William Kamkwamba: The Malawian wind tamer

12 November 2016 Comments (0) Africa, Environment, Featured

William Kamkwamba is someone you may have heard of. The 29 year old Malawian is has made himself famous for his remarkable achievements and brilliant mind. Indeed, the young man has delivered inspiring TED talks, and his book, The Boy Who Harnessed the Wind is a New York Times Bestseller.

Hard times suggested a bleak future

Kamkwamba’s early life was difficult. Born in a poor rural community in Malawi, his family relied on farming for subsistence. In 2001, when he was just 13, a major famine swept through  claimingthousands of lives and destroying entire communities. At the peak of this crisis, more than 70% of the nation’s farmers were considered at risk of starvation.

Food was so scarce that Kamkwamba parents would often go without a meal so that their children could eat.

For Kamkwamba, the disaster meant that his family could no longer afford to send him to school for five full years. As a natural and avid learner, he was devastated by his inability to attend class. However, determined to continue his education however he could, Kamkwamba immersed himself in books from a local lending library.

A mind that couldn’t be denied

Through the library, he developed a passion for engineering. He taught himself about circuitry, materials, and physics despite only having a basic understanding of English. In the aftermath of what he set up his own small business fixing people radios and other electrical appliances.

One book in particular called Using Energy, concerning wind turbines, became of particular interest. He was astounded to learn that wind energy could provide reliable electricity and power irrigation. As a result he vigorously studied the complex schematics, all the while considering how he could apply them in his own environment.A crude Kerosene-powered generator was the only source of energy his family possessed at that time.  Since the engine was costly, expensive and unreliable Kamkwamba started by fashioning a prototype windmill form an old radio motor. Pleased with the results, he set about building his first real windmill, salvaging what he could from a scrap yard. He said, “Many people, including my mother, told me I was crazy.”

Undeterred, Kamkwamba created his windmill with an old bicycle, a dynamo, PVC pipes, the fan blades from a defunct tractor, and a shock absorber. He connected his contraption to a car battery so he could store the energy he harnessed. What’s more, he completely wired his own house to include switches and a circuit breaker.

John Collier, an Engineering Professor and advisor to Kamkwamba said, “To start with nothing and end up with a fully-fledged windmill that produces power is an extraordinary move – and to do it all with no tools except for some nails?”

International Acclaim

Before long, local villagers were clamoring to charge their phones at Kamkwamba’s house; the only source of reliable power in the area. The news of his achievements spread across the country, and journalists came to visit. The national newspaper, The Malawi Daily Times wrote a long piece on Kamkwamba, as did Hacktivate blogger Mike McKay. The story came to the attention of Emeka Okafur, the Program Director of TEDGlobal. Fascinated by Kamkwamba’s story, Okafur invited him to TED as a fellow.

Before his talk at TED, Kamkwamba had already made some serious improvements to his system. He increased the diameter and height of his first windmill, which provided power to additional houses in his village. He also built a second windmill which powers a pump and an irrigation system.

An example for a generation

Upon attending TED, his story was incredibly well received. Inspired philanthropists in the audience became mentors and benefactors. The famous satirist and TED speaker Tom Reilly pledged to support Kamkwamba through seven years of school and university.

He was swiftly enrolled in the African Leadership Academy, a prestigious institution designed to rigorously prepare the talented students through academics, ethical leadership, entrepreneurialism and design. Kamkwamba then went on to study Engineering and Design at Dartmouth University, USA.

Since graduating in 2014 Kamkwamba has overseen numerous wind turbine installations throughout Malawi. He intends to use his education to continue solving problems his home country is facing with. His foundation, Moving Windmills, has already delivered numerous life changing development projects across the country.

Finally he wants to open an innovation centre to inspire the next generation of young leaders and entrepreneurs. Perhaps a quote from Kamkwamba’s own TED talk should adorn the walls: “Trust yourself and believe, whatever happens don’t give up.”

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Top four South African banks boost IT spending

10 November 2016 Comments (0) Africa, Featured, Technology

As customers shift to electronic banking, South Africa’s four largest banks spent a total of more than $2 billion on information technology and personnel to run it during the year ending in June. At the same time, two of the four banks, Barclays Africa’s Absa bank and Standard Bank, have closed dozens of branch offices, a further reflection of the growing preference for virtual banking, especially among young consumers. The $2.1 billion IT spend represented about 15 percent of the banks’ total operating costs for the same period, according to Hilton Tarrant, an analyst based in Johannesburg with the tech firm immedia. In addition to Barclays Africa’s Absa and Standard Bank, Tarrant’s analysis includes First National Bank and Nedbank. Tarrant also said IT spending is increasing, led by Standard and Barclays. For example, Standard Bank’s IT spending, including salaries, totaled $900 million in 2015, up 11 percent from the year before. Barclays Africa spent $480 million, a seven percent increase over the prior year.

Trend expected to continue

“The trend is only going to accelerate as transactions continue to be offloaded to Internet and mobile banking,” Tarrant said, noting that native mobile banking apps with better security would also drive the appeal of electronic banking. In total, the four banks have reduced the number of branches in South Africa from 3,005 in 2011 to 2,862 at the end of 2015, a reduction of 143 branch offices or five percent, according to Tarrant. Barclay’s Absa closed more than 100 branches in the last five years, and Standard Bank over 50. First National Bank has about the same number of branches as it had in 2011 and Nedbank has added 13 branch offices. In 2015, Barclay’s Absa had the largest footprint of the four with 784 branches. First National Bank had 723, Nedbank 708 and Standard Bank 647.

Branch offices incur high costs

While there have been complaints about bank branch closings, Tarrant said that is a good idea, given high costs to operate them and reduced consumer interest in banking in person, especially among mobile-focused young people. “Traditional banks’ branches have high costs, which is one of the reasons why the companies have pushed hard to shift transactions to electronic channels,” Tarrant said. South Africa is part of a global and continental trend toward electronic banking. In 2014, mobile money transactions generated more than $650 million in revenue in sub-Saharan Africa and the amount is expected to double to $1.3 billion by 2019, according to research by Frost and Sullivan ICT. According to the World Bank, fewer than 25 percent of the 1.4 billion  population of the continent have a bank account while 40 percent have a mobile phone.

Banks dominate mobile market in South Africa

On the continent, South Africa is unusual. With 75 percent of the adult population using banking services, the country’s banks have established themselves the major players in online and mobile transactions. In many other sub-Saharan African countries, where a much smaller share of the population uses any banking services, mobile service providers dominate the marketplace. Earlier this year, a top East African bank announced plans to challenge a major telecommunications operator to gain a larger share of Kenya’s electronic banking market. Banks in Cameroon, Mali and Nigeria also are trying to tap into the growing market of electronic payments.

In contrast, efforts by telecommunications companies to crack the South African electronic money market have foundered. The African telecom giant MTN in September announced it would halt its mobile money service, saying it was not commercially viable. It was the second telecom to drop service in South Africa this year. In May, Vodacom, a Vodafone subsidiary and the nation’s largest mobile network, announced it was throwing in the towel after its M-Pesa service – popular in other countries including Kenya – failed to catch on. The company had hoped to sign up 10 million South African users when it launched M-Pesa in 2010. However, by 2015, only one million people had signed up and only 76,000 were active on the platform.

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Jamila Abass: Changing the face of farming in Africa

8 November 2016 Comments (0) Agriculture, Featured, Technology

Jamila Abass is a shining example of the young, innovative, tech-focused generation emerging throughout Africa. Her business, M-Farm – a tech solution that provides valuable services to Kenya’s farmers – is a fantastic model of how technology is breaking down long-standing barriers. Early in her life, Abass worked tending crops in her family’s small kitchen garden. She grew and sold kale and coriander, giving her perspective on the agricultural industry, and playing a key part in her later interest in rural development. Abass proved to be a gifted student. She went on to study Computer Software Engineering at the Université Abdelmalek Essaâdi Tétouan in Morocco. After graduating in 2009, Abass teamed up with fellow tech entrepreneur Susan Oguya. They were both perturbed by the state of Kenya’s farming industry. Abass said, “The newspapers always had sad stories of farmers getting exploited by middlemen.” She explained that unscrupulous intermediaries were leveraging farmers into selling their produce for a fraction of their true market value; a situation which had been ongoing for decades.

Tackling the exploitation of farmers

Abass and Oguya wanted to develop a solution to tackle this issue. They conceptualized a digital platform that farmers could access through their mobile phones. They theorized that this marketplace would arm farmers with the information they needed to protect themselves and make smarter decisions. Looking back, Abass explained “They (farmers) had no information and no alternative market. We wanted to close that information gap between the farmers and the market”.

Soon after coming up with the idea, the pair took their concept to the IPO48 challenge, a kick-starter designed to support promising online solutions. Abass and Oguya won a US$10,000 dollar prize and subsequently began building M-Farm. M-Farm began as an SMS service by which farmers could check the daily prices for over 40 popular crops, and identify buyers throughout the country. Through partnering with renowned tech startup M-Pesa, M-farm allowed farmers to make and receive mobile payments. With mobile phone technology widely available across Kenya, M-Farm is an affordable option for even the poorest rural farmers. By 2012, Abass had over 5,400 users on the platform. These farmers had managed to more than double their profits, thanks to the direct links M-Farm offered with legitimate buyers and exporters.

Progress, but some still struggling

In late 2012, M-Farm made the finals of the highly prestigious Unreasonable Institute Exhibition. M- Farm’s success was on full display, and Abass’s excellent presentation brought valuable exposure to the firm, ultimately attracting further investment. With financing secured, Abass and the team looked at ways that they could improve their service. They identified that for some farmers, simply providing them with pricing information was not enough to improve their fortunes. Many were still struggling to access the markets and get a fair price for their crops.

Abass identified that rural growers were producing in low volume, and that for major buyers, it was impractical and expensive to acquire the produce they needed from multiple small-scale enterprises. To counter this, M-Farm launched its group selling tool this enabled local farmers to form cooperatives, making their produce more attractive and easier to sell. Abass quickly extended the cooperative model by rolling out a buyer's cooperative feature, whereby farmers can band together and negotiate better purchases of fertilizer, seeds, and equipment.

International ambitions

The M-Farm platform has evolved to become a powerful and promising tool. As Abass said, “There are so many things you can do with the technology.” Today the platform offers transport services to farmers through partnerships with local logistics and haulage businesses. M-Farm now also arms its members with valuable industry knowledge. For instance, farmers can access expert agricultural advice, forecasts for future crop demands, or guidance on international regulations such as prohibited chemicals and pesticides.

Abass has also made inroads into the international market, establishing links with major retailers in Europe who are keen to run a socially responsible supply chain. With over 22,000 clients now thriving in Kenya, it’s clear Abass has a seriously effective business. She now intends to scale M-Farm globally, bringing its considerable benefits to farmers in other emerging countries. The story of Abass and M-Farm signifies how entrepreneurship and technology are changing the face of Africa.

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New bank SunTrust focuses on tech to make changes in Nigeria

6 November 2016 Comments (0) Africa, Featured, Technology

A new player has arrived in Nigeria’s banking sector. SunTrust Bank officially opened for business last month, becoming the first new institution to be granted licensing by the Central Bank of Nigeria since 2001. SunTrust has been making headlines due to its innovative, tech-driven business model that stands in stark contrast to Nigeria’s traditional financial entities. The bank could prove to be a disruptive force within the country’s banking space.

A technology based bank is born

Muhammad Jibrin, the bank’s Chief Executive Officer, has been one of the driving forces behind the bank’s emergence. Jibrin founded SunTrust in 2009, at the time the firm was focused solely on mortgage lending. After enjoying years of steady success, the board decided to pursue a commercial banking license, a notoriously difficult proposition given Nigeria’s stringent financial controls. SunTrust finally obtained the coveted license in late in 2015, becoming the first new bank to do so since the beginning of the 2000s. Jibrin and the SunTrust team have a vision of providing a modern, technology driven service that will change the way banking works within Nigeria. He said “Banking is no longer where you go, it is what people do. Therefore, the only thing that can stand the future is no longer physical branches, but banking services that would be driven by technology.”

New ways of banking can help millions

Nigeria remains woefully underserviced by the traditional banks in the nation. An estimated 40 Million adult Nigerians are currently “unbanked”. SunTrust is looking to bring quality banking services to this demographic. In order to achieve this SunTrust has laid out a daring strategy and ambitious goals. The bank only runs a handful of branches as it is restricted in where it can physically operate by its regional license. However, this suits their strategy just fine. SunTrust intends to attract customers the length and breadth of the country by focusing on purely electronic banking services. Jibrin said: “We will be everywhere because we are not limited by barriers or by physical location; technology is not limited physically and therefore whether you are in the South-East or in the North, we can easily service you.” Less branches on the ground means less overheads; SunTrust says that it will be able to offer the same services, more cheaply and effectively than the traditionally encumbered financial institutions.

SunTrust focused on the future of finance

Jibrin recently made an excellent point about the future of banking in Nigeria. He pointed out that 70% of Nigeria’s population could currently be classified as “young” and that this demographic is growing rapidly. The country has approximately 170 million citizens, yet this number will be as high as 220 million by 2025, making Nigeria one of the youngest countries on the planet. It is this growing, young and tech savvy population who largely don’t have access to, or can’t afford traditional banking services. SunTrust intends to be the bank for the new Nigerian generation. SunTrust has received praise for its courageous decision to launch in the midst of a recession, an unprecedented event for a financial institution. Charles Onyema Ugboko, SunTrust’s Chairman, said that going into business at this time proved that “the board and management are committed to the growth of the Nigerian economy.” Similarly, SunTrust has been lauded for its intent to focus on small and medium scale enterprises. These companies have long struggled to obtain credit from traditional banks, yet SunTrust intends to break the mold by placing them in clusters and cooperatives which will help to mitigate risk. The bank’s board is dedicated to this strategy as they feel that these underserviced businesses hold immense potential to drive growth In Nigeria.

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Azuri: Solar energy for off-grid Africa

4 November 2016 Comments (0) Africa, Environment, Featured

A British company is bringing pay-as- you-go solar power to rural communities in a dozen countries in East and West Africa with the help of artificial intelligence. With about 90,000 customers so far, Azuri said its PayGo solar system for communities that are too remote to access a power grid has the widest reach of any such provider in sub-Saharan Africa. Using artificial intelligence, Azuri said it has solved a significant problem with off-grid solar systems. On cloudy days, solar systems may not capture and store enough energy to provide electricity for the entire evening, causing frustration for users who may be watching television, doing homework, keeping a business open in the evening or charging their cell phones for the next day.

In addition to providing batteries and solar panels to customers, Azuri offers artificial intelligence technology that monitors each customer’s usage and slightly reduces electrical output to make sure power is not interrupted if the day’s supply is short. The reduction may dim the lights slightly, but it is barely noticeable, according to Simon Bransfield-Garth, chief executive officer of Azuri.

Power available longer

With this reduction, a battery that might only provide three hours of power at regular levels of output can stretch to four or five. People “want to be able to see at night. They’re less concerned about how bright the light is. They just want to be able to see,” Bransfield-Garth said. So the artificial intelligence technology figures out the customer’s average use then looks at the battery in the evening and adjusts the brightness of the lights so customers are “guaranteed to get that duration of light every night.” “It’s like the engine controller in your car that’s looking after all sorts of things in your engine,” he said.

System works in cloudy climates

So far, Bransfield-Garth said, the system has operated well in a diverse range of climates, from Ghana’s lengthy rainy season to Kenya’s abundant sunshine. “We have made technology that works in countries where there is a lot of sunshine and in countries where it is cloudier,” he said. Azuri’s pay-as- you-go system makes buying the package practical for many who would not be able to afford an up-front payment for the Azuri package. Using mobile payment services to buy credit on a weekly basis, customers typically pay for their equipment in 18 months, the company said.

Lower costs, environmental benefits

Bransfield-Garth noted that off-grid electricity costs in Africa are much higher than power costs in the west. He said burning kerosene costs about $8 per kilowatt-hour compared to U.S. electrical prices of about 15 cents. Azuri’s system frees up those costs to cover the solar payments to individuals who may earn only two or three dollars a day. He said the Azuri system is much cheaper than traditional sources, which can cost as much as 30 percent of the income of poor families. According to Azuri, solar power is an effective and environmentally safe replacement for traditional sources of light, which include burning kerosene or candles or using disposable batteries.

A 2014 study of customers of Azuri’s PayGo system in western Kenya found that users expressed pride that they could provide electricity for their children to study in the evening. They also said they were saving money on charging their phones and saving more than two hours each week to go and buy kerosene. More than 85 percent said they had been able to work more since installing the Azuri system. Studying and phone charging were the most common activities, each cited by about a third of the customers. Other uses included cooking, working and socializing. The company, which is based in Cambridge, has an office in Nairobi and additional staff in five other countries.

Students improve

Azuri also sells LED lights, mobile-phone chargers and MP3/radio players. The company also plans to offer a small television set with a satellite connection that can run on 10 watts of electricity. Bransfield-Garth noted that installing solar systems in remote areas has a significant social, economic and education impact as people become more connected and more productive. “On average, children spend two hours a day extra on homework when they have solar lights,” he said. “ It’s entirely normal for kids to go from mid-class to top of their class in three months just because they’re doing more studying.”

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