Youth Entrepreneurship -- a Pivotal Engine of Growth and Sustainable Development

By: Njideka U. Harry, Founder and Chief Executive, Youth for Technology Foundation (YTF), Nigeria; Schwab 

                                 Social Entrepreneur of the Year 2013

Africa has an unprecedented opportunity to invest in its youth, the continent's largest population, if it wants to create a future for herself. Timing is critical to harness the demographic dividend the "youth bulge" brings. There is, however, only a small window of opportunity.

The World Bank Youth Summit in Washington, D.C. last month provided a forum to highlight the importance of youth's role in the global development agenda. It proposed knowledge exchanges between development practitioners, change-makers and opinion leaders. All players are engaged in three primary sub-themes: education, entrepreneurship and millennial communication.

There is inadequate focus and a lack of an innovation culture within schools and tertiary institutions on the practical skills required to start, manage or work in entrepreneurial ventures. A recent report from the Omidyar Network noted that among colleges and universities in sub-Saharan Africa, only seven percent have an entrepreneurship center dedicated to entrepreneurial development, 28 percent offer courses specializing in entrepreneurship and 10 percent offer courses in innovation and technology. Compare this to Singapore, a country that provides mandatory entrepreneurship education for one year within the primary school system.

If youth are provided with the right skills, they can reap the benefits of employment from digital outsourcing. The most successful nations, i. e. the competitive advantage societies, create wealth by exporting complex products and services. The right investments will drive economic gains created by highly skilled people. As labor in China becomes more expensive, for example, companies are using more upstream local entrepreneurs. In a similar vein, European companies are setting up overseas sales networks and establishing offices abroad, moving their businesses from China to Ethiopia for instance.

Micro entrepreneurs on the street of Accra. ©EnterpriseAfrik

Creating a society that encourages youth-led entrepreneurship and makes it easy to start and grow a business requires more than just money and a good idea. It requires a whole network of interlocking institutions, polities and cultural attitudes, collectively known as the "entrepreneurship ecosystem." The question then becomes, "How do we deliver a democracy that delivers for entrepreneurs?" The environment, financing opportunities, culture and mentoring are instrumental.

In many African countries, the cost of capital is often so high that it impedes the entrepreneur's profitability. For young entrepreneurs, government funding is viewed as difficult, if not impossible to access due to bureaucracy and nepotism. The summit was an opportunity to entice Africa to step out of their "survival trap" mindset, reacting to urgent symptoms instead of addressing the root causes. While short-term actions often bring some relief, they also perpetuate this vicious cycle by ignoring the root causes. In Nigeria, the Subsidy Reinvestment and Empowerment Program (SURE-P) and the Graduate Internship Scheme (GIS) were initiated in 2012 by the Federal Government to reduce youth unemployment. It is a little too early to fully understand the fate of these programs, however.

Few avenues of support are available to help youth identify their passion, and build the confidence required to convert that passion into a viable business. Networks of support services can be set up where local business professionals are identified, documented, mobilized and incentivized.

Within the limitations of these constraints, in environments far from enabling, it is difficult for youth-led businesses. The road to entrepreneurship is long, it is rough, it is hard. We must keep trekking as it is only then that change will come.

Turning Human Waste into Goldmine in Africa

Millions of slum dwellers in Kenya have limited access to proper hygienic sanitation. Sanergy, a startup founded in 2010 by a team of MIT graduates, is tapping into this market by franchising products to local entrepreneurs in Nairobi’s informal settlements.

David Auerbach, a Sanergy co-founder

Sanergy manufactures low cost high quality branded sanitation facilities called Fresh Life. The toilets are sold to people in the community who run them as small businesses. So far, Sanergy has sold 275 toilets to 140 entrepreneurs. Sanergy provides daily waste collection services, marketing and branding support, as well as training for the entrepreneurs.

One of Sanergy’s co-founders, David Auerbach said  that the business was inspired by the team’s interest in finding pragmatic solutions to social challenges. Previously, Auerbach ran partnerships, policy and outreach at Endeavor and was a deputy chair for poverty alleviation at the Clinton Global Initiative in 2006.

“Sanitation, renewable energy and fertiliser were challenges out there that were really interesting to my team and myself,” he said. ”We came here and went to informal settlements and saw close-up the challenges people faced.”

The social enterprise comprises 107 people and works in three slums in Nairobi, with moves to expand into a fourth.

Fresh Life toilets sell for KSh 50,000 (US$590) per unit. The charge covers business support, marketing, branding, training and daily waste collection services for the first year. Thereafter, franchisees have to pay a KSh 9,000 ($106) annual fee.

Sanergy is partnering with micro-lender Kiva to help entrepreneurs get loans to purchase the Fresh Life toilet.

“It is a very good investment. With an average of 50 users per day charging KSh 5 per use, the entrepreneur is making somewhere around KSh 225 ($2.6) in profit per day. Over the course of a year that adds up to about KSh 80,000 ($944) in profit so they are able to repay within about nine months,” said Auerbach. “On average, each of our entrepreneurs is purchasing a second toilet. That means it is a good investment.”

Turning waste into fertiliser

According Auerbach, converting human waste into other useful materials will be the “driver of growth” for Sanergy. Currently, the business collects about 25 tons of waste per week.

“There is a whole variety of what you can turn it into, including fertiliser, renewable energy… plastics [and] animal feed. So there is a huge opportunity. We go to each and every toilet [daily] and collect the waste in a professional and hygienic manner and take it to a centralised facility where we are converting mostly into organic fertiliser but, also at a pilot level, renewable energy. The results have been extremely positive.”

In three years, Sanergy plans to have over 1,000 Fresh Life toilets in Nairobi.

Successful entrepreneurship model

“Our entrepreneurs are the key to the model. As our entrepreneurs become successful, other people will want to buy the Fresh Life toilet. This makes our model inherently replicable so that we can take it to other peri-urban areas within Kenya as well as other cities around East Africa: Kampala, Kigali, places like that.”
According to Auerbach, working in informal settlements has been difficult, mostly because the communities are very built up.

“One good problem we have is we are collecting so much waste now. We are running out of space and so we need to move to bigger space,” he said. “The uncertainty around land in informal settlements is always a challenge. We are building our toilets on land and our entrepreneurs need to have access to that land to buy a toilet.”

Auerbach said he relishes the challenges he faces in running his business.

“I love this work. Our whole team is motivated by this powerful social mission and the opportunity we have to fix a huge problem around the world. That really excites me every day. I have been on jobs where you wake up every day and you are disappointed to go to work.”

He advised other entrepreneurs in Africa to put their “ears on the ground” and build strong teams.

“You have to be prepared to fail and when you do be able to pick yourself up really quickly because you are going to be wrong more times than you are right. You have to learn from that and continue to grow.”

Source: How We Made It in Africa

7 Principles of Success and wealth Creation in Africa

Michael Agyekum Addo

Ghanaian entrepreneur and founder and CEO of the Kama Group Michael Agyekum Addo came from a poor family. He opened his first pharmacy in 1986 with no capital and today he owns 11 wholesale and retail outlets across Ghana, two pharmaceutical factories, a micro-finance firm, real estate business and a multi-purpose conference centre.
 
Addo is the council chairman of Ghana’s Pentecost University College, hosts a TV programme that educates viewers on entrepreneurship and oversees the Kama Education Project which trains teachers to make entrepreneurs out of students.

Addo has written a book, The Seven Principles of Success and Wealth Creation, in which he details his advice to entrepreneurs. He shares these ideas with How we made it in Africa.

1. Reliability
“We profess to be honest people but are we reliable? Are we reliable with our time?” asks Addo. “Time is money and we have no value for time. We call it ‘African time’ meanwhile we don’t have an African watch.”
Addo’s first principle to creating wealth and achieving success is reliability. He says people have got to be responsible for their actions. “We must show credibility. We must be a reliable group of people. After all, there is an adage that [says] ‘a good name is better than riches’. A good name means you fulfil all your promises.”

2. Hard work
Addo’s second principle to success is hard work, which means much more than being at work from 8am-5pm.
In his book he writes: “The extra mile you go each day plays a significant role in climbing the mountain of success. Hard work makes mastery. Working hard requires love for whatever you do.”
He says a hard worker is selfless, has discipline, maintains focus, does not complain and is a happy worker.

3. Savings culture
Addo recommends that people create a culture of saving, rather than living from paycheck to paycheck and using up all their monthly earnings.
“We should have something to set aside that will be for us, that will grow us, that will be our roots.” He likens people to trees: without strong roots they cannot reap the benefits of fruit.

4. Remember your background
To begin saving and to break the pattern of borrowing, Addo says people should remember where they come from – “a poor continent, a poor country, a poor family”. Rather than continuing the trend of borrowing and getting into debt, he advises readers to start saving to become richer people.

5. Investment
Another of Addo’s principles to creating wealth is investment, which leads on from saving.
In his books he advises people to use about 50% of their savings for investments in the first year, and then build on this with time and experience. In his book he writes: “When deciding to invest, try to do some research on the investment, invest no matter how small the amount, get some experience before making a high-risk investment, and seek advice when in doubt.”

6. God-fearing
A deeply religious person, Addo places power in faith, an idea he adds to his book: “If you fear God, you should display the 3Fs: be fair; be friendly and be firm to all people at all times.”

7. Patience
Lastly, Addo lists patience as a way of achieving success. “Be patient in whatever you are doing. Rome was not built in a day, even though a thousand miles start with one step.”

He expands on this notion in his book. “Don’t allow anybody to ‘rush’ you through life by forcing you to cut corners and take short cuts. Take your time and do things right. Most of the wealthy and successful people you see around are where they are today as a result of years of hard work, patiently working towards the goals they have set for themselves.”

Source: How We Made It in Africa

Could Food Business create Wealth and reduce Poverty in Africa?

This article was written first under the headline " Food Business in Africa" by Jamie Welsh. EnterpriseAfrik is publishing for  its audience to analyze  and find out if  it is possible for Africa to solve its economic challenges trough food business.


Another way to aid poverty in Africa is by creating businesses that provides food. Numbers of business management consultants agreed that doing food business in Africa is one of the easiest, stable and profitable type of business in Africa. Any business that is concern about food supply in Africa are most likely to ponder because of the high demand by the Africans. The continent's long record of threats in food security will also be addresses if more food business investments will come to the region.

Africa has a population of almost 1 billion, the second largest next to Asia. The count is still expanding. This largely affects their food security which unfortunately, leads to a bad effect on the overall health and nutrition of the region. There are even scenarios that Africans die because of starvation. They can't run to anywhere for food because of the low supply.

If one will invest on the food sector, profits are brighter. First, the demands will be perpetual, second, the resources are abundant and third, it is a form of help. The only problem on this investment is the introduction of the kind of food you are bringing if they are something unusual for the people.

Demand for food is very high in Africa. This is all because of the enormous population of the region. Food security has been one of the worst problems the the region is facing. In any part of the region, you will find a community calling out for food. If business people will answer this call, then there is more of food problems that will be cured. It is not only the business that will gain, Africans will also find a solace that will aid their hunger. Any food business can also be tools to heal the region's wound on health. Since more Africans are not getting the right food, they are more vulnerable for diseases. If a new food business will enter the continent, people will soon embrace them, just offer your business with fair pricing.

Agriculture in Africa is very rich. Any food business can capitalize easily on the continent. It won't be a problem where to get the resources because of the vast availability of the African environment. Other agricultural products in Africa also have the quality to be exported to some other countries that has higher demand for food. A food business investment in Africa can work local and international, depending on the management. No need to worry about the supply because they are just found everywhere. If the Africa's natural resources will be enhanced, then possibilities for a longer life of the business is high. More probable than not, shortage is not a problem in food business in Africa.

Food business is the most inviting investment in Africa. Its features are obviously beneficial to both business and Africans. Demand, supply, resources, these are the clear features of food business. Owners are assured of more profits because of the great demand. Africa on the other hand will be able to end their food scarcity and malnutrition.

 

African Youth do not benefit from Fast Economic Growth

It may have one of the fastest growing economies in the world -- but if you're young and out of work in Africa, the future remains bleak.

The search for employment is a daily struggle for 24-year-old Sherrif Mohamed. He's one of millions of young unemployed Africans whose lives have stalled, despite economic growth across the continent.

Sherrif lives in Egypt, where until recently he was pursuing a university education. The revolution that ousted Hosni Mubarak forced him out of school and into a job market, which has continued to worsen. The uprising kept tourists away and investors out -- and Egypt is yet to recover.

Around 30% of 18 to 29-year-olds are now out of work -- a figure that's echoed across Africa. Sherrif's lack of a qualification narrows his employment prospects further.

"Now there are no jobs whatsoever," he said. "I've tried working in restaurants, coffee shops, clothing stores and lately worked at my brother's store. But the wages are not sustainable at all."

Thousands of miles away in Kenya, more disillusioned young adults walk the corridors of the University of Nairobi. Unlike Sherrif, they'll get to complete their studies and enter the job market as skilled professionals. But with Kenya's youth unemployment rate standing at 40%, they feel their prospects of work are equally slim.

Eunice Kilonzo is a promising student on the campus. She said: "I'm competing with around 700 people to get the same job, probably in the same place. So the chance of getting a job is pretty thin."

She places the blame firmly at the feet of her government. Eunice feels the job market will not improve in line with economic growth until the education system is revamped.

"If the market is way beyond your education level, there won't be productivity. We need to change everything about the education system. I cannot go into the library and study a book that was published in 1969. We are in 2012."

For Eunice and Sherriff, economic forecasts make for irrelevant reading. Africa's economy is expected to grow by 4.5% this year and by 4.8% the next, and its youth population is set to double by 2045, according to the African Economic Outlook report. But the headlines that herald a burgeoning economy aren't translating into the jobs they need.

 If jobless growth continues, they believe young Africans will continue to find themselves unemployed or, more frequently, underemployed in informal jobs.

World Bank Chief Economist Shantayanan Devarajan agrees that creating employment is the biggest hurdle that African nations will have to overcome.

"In low income African countries people can't afford to be unemployed. They are working in the informal sector with very low earnings and very low productivity.

"One reason for that low productivity is that these people have had very little education.

"On the other hand it's a huge opportunity because we can train them and can improve the quality of education. The other point is the rest of the world is aging, so Africa will become the place with all the young people."

The African Economic Outlook report also speaks of the importance of unlocking the potential offered by the region's youth. But it says the continent must modernize its industries and develop sustainable private sectors, in order to do so.

While, such harsh warnings are not relevant for all of Africa, the sentiment behind them is important. Devarajan agrees that private firms could provide an important source of jobs for the young and says African businessmen are taking advantage of the opportunities available now.

"Macroeconomic policies in Africa have improved inexorably in the last 10 to 15 years," he added.

"We've had commodity price booms in the past but those haven't translated to this kind of sustained growth before. And that means there is hope for a better future for Africa. This is not hype, this is real."

 Source: CNN

Never Forget your Dreams

Although millions of young people globally are searching desperately for a job there are many who have bucked the unemployment trend and have successfully taken their first step on the career ladder. 

Here are what some African youth are doing to overcome unemployment challenges

Bruno Menzan, 30, human rights consultant, Dakar, Senegal

'Do not get discouraged by failure and  keep trying'

 

Bruno Menzan is a full-time consultant for human righ

I was interviewed for around 10 of the many positions I had applied for. But I think when you fail to be shortlisted for roles, it does make you question your capabilities and skills.
There were also lots of obstacles I had to face. My home country - Ivory Coast - was going through a civil war and so I would be being interviewed over Skype while there were bomb blasts going off in the background. My priority was finding a good job while caring for my daughter. For me it became an issue of survival.
Don't just look for paid roles - volunteer or intern in order to get an insight into a professional environment and structure your CV so that it highlights your accomplishments and talents.
Do not get discouraged by failure and keep trying. Learn from your unsuccessful attempts.

Anthony Kogi, 23, technical support, Nairobi, Kenya

'Keep on trying and if you have to settle for an internship, do it to gain experience'

Anthony Kogi 

After university I sent out a bunch of applications and dropped off my resume at offices all over Nairobi. I also did a lot of networking. Although Kenya has a high rate of unemployment, I chose not to give up.
I bumped into my current employer one day and handed him a copy of my curriculum vitae on the off-chance he needed somebody. A day later he called me. I was first an assignment research assistant but am now working in technical support.
This is a small start-up company but it's giving me the experience I need.
I would say keep on trying and even if you have to settle for an internship, do it so that you at least gain experience.

Don't Stand by, Get Involved

Unemployment among 16-24-year-olds, is higher than ever in many countries around the world. 

Peter Cheese

Peter Cheese, chief executive at the Chartered Institute of Personnel and Development, argues that it's time for businesses to stop standing on the sidelines and get involved.

Youth unemployment across Europe is at a historic high averaging above 20%. In Spain and Greece, it is much higher and in the UK less than one in 10 businesses are taking on 16-18-year-olds.

This is unsustainable and the increasingly voiced concerns of "lost generations" may yet come to pass if nothing changes.

Businesses in the developed world are increasingly employing higher-skilled workers while what might have been traditional entry-level jobs have, over time, been outsourced or automated. 

This is making it more difficult for young people to get a step on the employment ladder.

Business necessity
 If businesses continue to lock out potential future talent from the labour market, fast forward 10 years from now and organisations will find themselves with an ageing workforce and struggling to find the highly-skilled workforce they need to grow and compete globally.

So getting more young people in to work is not just a social good, it is a business and economic necessity.

This is a collective challenge that requires business, policy makers and education to work more together - not historically comfortable bedfellows.

Employers need to take more of a lead themselves in developing the workforce of the future.
We have a vested interest in actively developing our own pipelines of future talent. 

If we stand on the sidelines and see ourselves as passive consumers of the education system, we can't expect young people to be job-ready.

Our research finds that in the UK three-quarters of employers think offering young people work experience placements or internships is the best thing they can do to help young people, but less than half actually do this.

Engaging with young people and helping to build the skills needed for work can start early on.
Organisations like Junior Achiever-Young Enterprise are working with companies and schools in the UK and Europe to bring volunteers in to the classrooms to teach young people about basic business and entrepreneurial skills.

Vocational education, where young people learn the skills and earn their qualifications working while studying is in many countries being revitalised.

Investing  
Apprenticeship programmes have a huge role to play in bringing young people from different backgrounds in to work and the benefits to the employer from doing this have been very well documented. We need to encourage these routes as it is clear that we cannot afford to continue with policies that suggest half our young people should be going to university.

 The good news is that a wide range of businesses from sectors like banking, technology and accountancy that historically never would have considered taking on apprentices or encouraging vocational education are now actively promoting them.

The majority of employers tell us they do see a business case for investing in young people and do believe they have a role to play in tackling youth unemployment.

They know how important it is to invest for the future and to harness the unique skills and perspectives young people bring to their organisations. They also know how important it is for their workforces to reflect the diversity of their customer bases.

Countries like Germany have the lowest rates of youth unemployment because they have put in programmes that establish the strongest links between education and work.

However, there remains a startling gap between intention and action, and we at the Chartered Institute of Personnel and Development are embarking on a major programme of work with employers to open up new access routes for young people and smooth the transition from school to work.

Kenya Airways plans to shed staff to cut costs

NAIROBI - Kenya Airways plans to shed staff through voluntary retirement, redundancies and outsourcing of non-core roles in order to contain soaring costs and protect its bottom line, it said on Friday, but unions said they would fight the job cuts.

The airline, which is 26.73-percent-owned by Air France KLM, first indicated it would look to slash costs in June, after its full-year pretax profit slid 57 percent due to higher fuel costs and a rising wage bill.

Its wage bill had more than doubled over the previous six years to 13.4 billion shillings while the total number of staff had risen by just over 16 percent to 4,834.

The carrier, one of the largest in sub-Saharan Africa alongside Ethiopian Airlines and South African Airways, did not indicate the level of savings it was targeting or how many jobs would be lost in the exercise.

The Aviation and Allied Workers Union (AAWU), which includes 3,800 members from the carrier, promised to use all means at its disposal, including going to court, to stop the job cuts.

"We think what they (Kenya Airways' management) are doing is just a sideshow because they are sacrificing workers for their failures," Perpetua Mpojiwa, head of AAWU, told Reuters.

She questioned why the exercise was announced soon after the airline unveiled an ambitious five-year expansion plan, which would inevitably require hiring staff, rather than job cuts.

Kenya Airways said in March it would spend $3.6 billion, mainly to buy new planes and start new routes between Africa and Asia.

Source: Reuters

AfDB advocates increased Women Entrepreneurship in Africa

AFRICAN Development Bank (AfDB) has called on African countries to tackle the negative factors that are inhibiting the expected development of women entrepreneurship on the continent.

President of the bank, Donald Kaberuka, in his speech at the second African Women Economic summit in Lagos at the weekend, identified the factors as lack of collateral, outdated customary laws and practices, which prevent women’s right to properties and challenges of registering new businesses in the region.

According to him, some banks do not recognize women’s credit worthiness, ‘although they receive high credit rating from micro-finance institutions. “We must move on from these rudimentary constraints to issues such as innovative financing opportunities, mentorships and partnerships for women in business.

“Much more needs to be done to enhance the productivity of women in economic development. But the situation is not dismal. We are building upon previous achievements - reflected in our presence in this room today”, he said.

Kaberuka explained that women have always played a pivotal role in the socio-economic development of Africa. As farmers, entrepreneurs, traders and innovators, they are key economic actors in the continent, adding, “I believe, strongly believe investing in women differently is essential to revitalise our economies.

Earlier, Nigeria’s Minister of Finance, Ngozi Okonjo-Iweala, in a keynote address, emphasised that women’s economic empowerment was no longer an option because investing in women who constitute half of the continent’s population was the only way to sustain the growth recorded across the continent.

“Women are the third largest emerging markets in the globe. Women are the third largest sources of growth. One of the fastest ways to sustain current growth is to invest in women,” Okonjo-Iweala said.

She recommended the establishment of a specialised Bank to take up the financial interest of women, who do not have access to investment finance due to a host of reasons.

Also addressing the gathering, New Faces New Voices Executive Director, Nomsa Daniels, said in the next two years, the organisation would focus attention on the development of a data base on women participation in entrepreneurship, financing and the economy.

She said the group, which currently has chapters in 16 countries, would also organise capacity building programmes, financial education and enlightenment courses for women.

New Faces New Voices Advisor and a former AfDB Vice President and Chief Operating Officer, Nkosana Moyo, explained that finding ways of empowering women with quality health, education and finance was of utmost importance. “Women are actually a huge market segment and the most essential tool we need for the development of the continent. So, we need to develop financial products that can help to fully utilise their potentials.”

Source: The Guardian, Nigeria

African gov'ts should enhance Entrepreneurial Capacity of their Citizens

Former President of Ghana, J.A. Kufuor

Former President, John Agyekum Kufuor has commended the African Development Bank (AfDB) for diversifying its base to cater for the private sector in Africa and enhance their capacities.

He said by opening up to the private sector, the bank, which dealt almost exclusively with governments and the public sector in the past, was laying the foundation for building a strong and competitive entrepreneurial class worthy of competing evenly on the international stage.

Former President Kufuor was speaking on: "Challenges and Opportunities of Entrepreneurship and Capacity Development in Africa," at the Eminent Speaker's Forum of the AfDB at its headquarters in Tunis, Tunisia on Friday, a statement signed by Mr Frank Agyekum, Spokesperson to the former President said.

The function was chaired by Dr Donald Kaberuka, President of AfDB and attended by the bank's top hierarchy, financial experts, the banking community and diplomats.

Former President Kufuor said although Africa abounds in entrepreneurial talents, the continent lacks the technical know-how and informative knowledge of the market to take advantage of the benefits of globalization.

"The indigenous entrepreneur by himself is so seriously handicapped by history and lack of practice. But his failure, automatically, is also the failure of his nation which becomes the dumping ground for imports which could otherwise have been produced competitively locally and which would have enhanced job-creation and employment.

"Therefore, it behoves the public sectors of the economy to join forces to strengthen and deepen entrepreneurial capacity as the main agency for a nation venturing into the international market successfully," he said.

The former President said for Africa to get and secure its fair share of the market, it may be necessary to enter into partnerships that ensured know-how, capital and market for competitive advantage.

He said: "The critical mechanism to enlist such partnership is efficient and effective negotiating skills, which governments within their regulatory authorities should assist their private sectors with as they enter into partnerships with their foreign counterparts.

"The opportunities that would issue from the institutionalization and practice of the concept of Public-Private Partnerships as the cornerstone of Africa's development will be legendary.

"The continent abounds in practically all the raw materials requisite for sustained industrial, agrarian and economic transformation for its people's.

"It has the potential to become the single biggest market in the world in the foreseeable future. This is why it is being courted from the East and West. Now more than ever, it requires leadership of insight both in its political as well as its financial and intellectual institutions to guide and mainstream itself into globalization."

Former President Kufuor earlier on Thursday had separate meetings with Dr Ben Jafaar, President of the Constituent Assembly, which is drawing up a new constitution for Tunisia, and Mr Beji Caid Essebsi, who became Prime Minister in the wake of the Tunisian crisis that precipitated the Arab Spring and helped to bring the country back to normalcy.

Former President Kufuor will arrive in Shanghai, China Sunday for the second China-Africa Forum.

Source: Ghana News Agency

Africa – Home to world’s Leading Entrepreneur

CEO and managing director of Kenya’s Equity Bank, James Mwangi, was this month awarded the Ernst & Young World Entrepreneur of the Year for 2012.

Mwangi was picked from 59 finalists, each of whom had already been awarded the E&Y Entrepreneur of the Year in their home countries.

“This is a global recognition for Africans who are embracing the power of entrepreneurship to change the economic and social state of Africa,” said Mwangi.

James Mwangi

With the Chinese finalist owning the largest ship building company in the world and the Canadian finalist from the biggest pharmaceutical firm, How we made it in Africa looks at why Kenya’s Mwangi walked away with the title of entrepreneur of the year.

Equity Bank – from insolvency to banking giant

Equity Bank is renowned for being the bank with the largest customer base in east Africa, and is based in Kenya with regional operations in South Sudan, Uganda, Rwanda and Tanzania. It is home to nearly 8 million accounts, with nearly 50% of all bank accounts in Kenya.

Mwangi has led the bank from a technically insolvent building society with an asset base of Ksh. 28 million in 1993 to become a leading all inclusive commercial bank with an asset base of over Ksh. 220 billion and listed on the Nairobi Securities Exchange and Uganda Securities Exchange.

In a conversation with students at Stanford Business School in 2007, Mwangi said that Equity Bank’s strong commitment to its mission statement was significant to its success. “Focus on your vision,” he advised students. “Most of us get distracted and make our core business reacting to competitors. Focus on the customers. Ultimately, the competition is about the customers. It is not about the technology.”

From 2009 to 2010 the bank’s turnover increased by 32%, with its assets increasing by 42%.

Through strategic capitalisation, Equity Bank also managed to attract the largest capital injection (US$180 million) in the history of eastern and central Africa from Helios EB, an Africa-focused private investment firm.

Mwangi and entrepreneurship in Africa

Ernst & Young are not the only ones to notice Mwangi’s entrepreneurship skills. In 2010, the Financial Times identified Mwangi as one of the top 50 emerging market business leaders.

“An entrepreneurial spirit is very important in the world,” said Mwangi. “Entrepreneurs create jobs, entrepreneurs create wealth and, consequently, entrepreneurs compliment the thoughts of government in creating order and prosperity in the world.”

One of Mwangi’s many achievements is Equity Bank’s investment in an IT platform that can accommodate 35 million accounts, including a level four data centre which is the only one of its kind in sub-Saharan Africa. This means that Equity Bank is at the forefront of creating synergy between banking and mobile telephones. Other innovations include M-Kesho, the world’s first mobile centric bank account; Orange Money, a mobile money transfer platform for Orange Telecom subscribers; and agency banking.

Mwangi hopes that being recognised as the E&Y World Entrepreneur of the Year will inspire young Africans to take up entrepreneurship and show the rest of the world that there are plenty of investment opportunities and potential in Africa. “Having won this award from Africa, I want to tell the international community that Africa is ready for investment,” stated Mwangi. “Africa has the opportunities and is the fastest growing continent and consequently the remaining frontier for those that want to succeed in entrepreneurship.”

“Over the past 26 years, entrepreneurs have done more than any other group to stimulate innovation, job creation and prosperity during both periods of growth and in challenging economic conditions,” said Jim Turley, global chairman and CEO of E&Y. “James epitomises the vision and determination that set entrepreneurs apart and is very worthy of the title Ernst & Young World Entrepreneur of the Year 2012.”

Source: How We Made It in Africa

Two Ghanaians named in Africa’s top tech-preneurs to watch

David Osei, Middle, and his colleagues at Dropifi

Two Ghana ICT experts have been named in top positions among top African ‘tech-prenuers’ whose exploits and businesses had captured the attention of global markets, and had been accredited by internationally recognized and respected business programmes and media houses, including Forbes Africa.

ITNews Africa reports that these experts and their businesses who had been profiled by international programmes and media houses that matter, was an indication that they were tech-preneurs the world ought to watch.

First on the list was Herman Chinery-Hesse, co-founder of SOFTtribe (www.softtribe.com), who has been dubbed “the Bill Gates of Africa” and “Father of Technology”.

Herman Chinery-Hesse is an innovator, disruptor and software pioneer from Ghana, who co-founded SOFTtribe, a leading software developer focused on the implementation of computerized business application systems.

The second on the list is David Y.B Osei, CEO, Dropifi (www.dropifi.com), who is also a co-founder of the Forbes-Africa-listed web-based messaging platform company.

Dropifi was rated third on Forbes Africa’s top tech start-up list last February, and it was also a recipient of a prize at the Accra Startup Weekend.

The following are others listed among the tech-preneurs to watch.
 
1. Ayodeji Adewunmi, co-founder of Jobberman (www.jobberman.com).
Jobberman is a job website focused on Nigeria, offering search facilities for job seekers and the opportunity for businesses to advertise posts. It has been identified by online industry experts and industry followers as amongst Africa’s top start-up ventures.
 
2.  Vincent Maher, co-founder of Motribe (www.motribe.com)
The company’s website describes the business as “a platform enabling users, brands, agencies and publishers across the world to build and manage their own social communities.” Motribe was co-founded by Vincent Maher, a new media strategist who has established himself within the media and technology industries.
 
3.  Mark Allewell, founder and CEO, Hummba (www.hummba.com)
Mark is part of the team behind Cape-based Hummba, a social and travel networking website that allows users to download free auto travel guides and share travel experiences. The site, which has its roots in Tourism Radio – also started by Mark, is integrated with Facebook and Twitter.
 
4.  Barbara Mallinson, founder of Obami (www.obami.com)
Obami is an established social learning management system that serves to connect everyone within the education space. Barbara Mallinson is the founder behind this venture, which is listed by Forbes Africa as one of the Top 20 African Tech start-ups and recognised partner of Netexploratuer initiative, amongst the top ten most innovative technologies in the world in 2011.
 
5.  Leonard Ah Khun, co-founder of Cobi Interactive (www.cobiinteractive.com)
Together with Steven Preston, Leonard started Cobi Interactive, a Cape-based software development company. Its profile has been posted across a number of established media houses and is also listed by Forbes Africa as amongst the Top 20 African tech start-ups.
 
6.  Taha Jiwaji, entrepreneur behind Bongo Live (www.bongolive.co.tz)
This Tanzania-based mobile services company is the brainchild of Taha Jiwaji and his team of dedicated professionals. The offering aims to bring to the country the next level of mobile and SMS-based services. Bongo Live has also been recognised as one of the front-running tech start-ups in Africa.

Source: Adom News, Ghana

The African Continent Must Move Forward

Edward Tuttor

STATEMENT OF MENSAH SARBAH JUNIOR COMMON ROOM, UNIVERSITY OF GHANA, LEGON ON THE COMMERMORATION OF THE AFRICAN UNION DAY, 25TH MAY.

The African continent which is the most blessed continent in terms of Natural resources and labor force still in the 21st Century wallows in the deep valleys of oppression, poverty, inadequate cohesion and mammoth mismanagement of resources. Our continent bearing due allegiance to the heroic struggles waged by our ancestors for political independence, human dignity and economic emancipation cannot continue to worship our history and be satisfied with our predicament, rather history is meant to empower the current generation to rise and shape our future.

The continent has evolved through turbulent and pleasant times featured by diverse degrees of challenges that befell each generation, but our generation of Africans is faced with a trinity of challenges. These are Leadership, Management of resources and poor avant-gardism.

The highest political structure of the continent; the African Union which is supposed to direct the affairs of the continent cohesively is losing control of its modus operandi. The cardinal purpose for the establishment of the African Union which is to take up the multifaceted challenges that confront the continent and its indigenes in the light of the social, economic and political changes taking place in the world has been defeated. This is because for almost five decades after the existence of the African Union the continent and its indigenes are poor and our economies are being dominated by aliens.
 
It’s conspicuous that the most pressing problem facing the continent is Leadership. The ambiance of political leaders in certain parts of the continent has been geared towards greed, lack of vision and adverse use of political power. Africa needs leadership that will serve as a beacon of hope for the African populace, Leadership that will serve on the platter of pure passion and not to pursue personal aggrandizement. Africa also needs Leadership that will be a unifying instrument and not a divisive one. Finally our continent needs leadership that will create an enabling environment for citizens to contribute immensely to national development and not leadership that will offer a bonanza of fear and intimidation.
 
Another problem of the African continent which is incompatible with progress is poor management of natural resources. The African continent for far too long has been drenched in the deep seas of abysmal management and astronomical corruption. Leadership of our Nations lacks the acumen to effectively manage our resources to rake in lots of funds for development. The abundance of natural resources vested in our lands has not met the best of management and so our exports do not attract the best of deals on the international market.
We Vikings and Okpo-mates believe that the third problem bedeviling Africans is the lack of avant-gardism. The African Economies will be improved only when we are creative to produce goods and services that will be of use to the world. The AU recognizes the punching power of creativity through science and Technology. Article 3 of the AU Act, objective (l) states that –“the African Union shall advance the development of the continent by promoting research in all fields in particular science and Technology”. It’s a naked fact that development cannot be decoupled from scientific research and creativity. The modicum level science and technology makes it difficult to tap our natural resources like oil, gold and other minerals. This culminates in foreign businesses coming in to tap our resources, give us peanut revenue and repatriate the lions share to their countries. The low level of African leader’s interest in advancing research in all fields of human endeavor will see our economies the same way they are and marking time.
 
It’s immeasurably astonishing when African Universities like the University of Ghana, University of Ibadan inter alia, who have lots of natural science oriented professors but the researches that will change our lives are not forthcoming. Our question is where are our Medicine Professors, the Bio chemistry professors, the agricultural professors and other scholars who have the Knowledge and we are not seeing any ”innovations” from them as we see from foreign professors.
 
Another issue that we will like to talk about is the attitude of the African Union towards research. How the Union does secure funds for research, and how does the Union makes sure that member countries make use of graduate education which is all about research?
We the Students of Mensah Sarbah Hall, University of Ghana is therefore calling on the African Union:

• To better coordinate the affairs of Member countries to crescendo the bond of Unity and Solidarity which are imperatives to develop our continent.

• To promote science and technology by securing funds for research. If possible establish a fund for research to facilitate the research. The Union should make sure all member countries do the same and make use of graduate education for national development.


• The Union needs to expedite action on the youth of Africa. The youth needs an ideological reinforcement geared towards the changing of our continent which can only be realized through hard work and avant-gardism.

• To wage a campaign driven towards rural development in African. The Union should make sure that member countries abrogate the mentality that rural dwellers are politically and economically disenfranchised so they don’t have to see development. Paying attention to the rural areas will boost our economies.


Thank you very much.


Signed:
Edward Tuttor
JCR President- Mensah Sarbah Hall, University of Ghana.

Unemployment in Ghana, The Craziness of the Nonsense

Research stats recently published by various authorities known and unknown has brought to the fore the gravity of the number of idle hands that are strewn in the streets of the country.

The issue of unemployment has assumed a global dimension, resulting into the lead Arab spring in Tunisia. Back home in Ghana it is no different tale to tell. Indeed, it will take the only stranger within the sovereignty of Ghana not to have acquainted the self with this problem. Solution to this pain has eluded our Father Christmas politicians who can promise everything under the sun including long life to the electorate.

However, efforts are been harnessed to how far the situation of unemployment can be done away with or be reduced appropriately. But amazingly, the actions of fellow countrymen and women leave much of slippery ground which will make it an uphill task to deal with. Not to say that the term unemployment is the relative language of those who know nobody. Because, job acquisition is all about whom you know. Without such contacts know and be aware, your search will take you well into your retirement age.
Have you not witnessed instances where no vacancy has been advertised boldly but “some” potential job seekers are engaged? Again, vacancies in most organisations are concealed awaiting the graduation of a certain lady or gentleman. If you doubt this, check the security services, the financial institutions, the Government Ministries, Departments and Agencies (MDAs). They look similar to the nuclear family. Therefore, you need to struggle to gain employment in order to hold down a place for your children, kith and kin as well as cronies. Why should we live this way and how long?

Besides, the age amendment groups within organisations in Ghana are also a contributing factor to the unemployment scare. Unless instances such as mentioned above are dealt with decisively the thought of holding back the tide, cutting the momentum and stemming the storm of unemployment in this country of ours will forever remain a façade.

Nonetheless, patronizing made in Ghana products will go a long way to deflate the swell of graduate unemployment. But as we are witnesses to ourselves, our taste is tailored abroad, thereby offering jobs to citizens of other countries while we hue and cry. Why can’t the taste for Ghanaian products be built among the younger generation, who will grow up with a unique crave for local products. For the reason that, the current call is quite late, for an old dog cannot be taught new skills or tricks.

Additionally, we have become our own trenches in which we fall. The hype of foreign football to the detriment of our beloved local Glo Premier League has impoverished and made our local football unattractive. The rep your jersey which is projected by FM stations will always lead to the enhancement of those brands. Imagine how many Ghanaian crazy soccer fans would be purchasing the jerseys of these European football clubs? It is a whole investment that has the propensity to hoist the brand of European football well above Ghana’s. Hitherto, jobs which would have been created with our local football clubs and stadia would end up abroad. This is not the case in even English football. The Italian Serie A is not shown or marketed in England, so is the La Liga of Spain. The danger of losing revenue and investing in clubs abroad is widely known to them. Can we boast that there is no such knowledge in arms with us? Downrightly, we are growing heavily and building enviable brands abroad which with care and well thought after actions would strengthen our economy.

An argument can be advanced to the effect that, the radio station is trying to make some few Cedis by selling quality air time. But we can start from somewhere by either promoting both at the same threshold or seeking for sponsorship for the local league exclusively for the creation of job here in Ghana for Ghanaians. This could in the distant future be seen as the socially corporate responsible act. Do you know that we collectively owe this nation? Yes we do.

The FM stations, especially Hitz and Joy all of the Multimedia family, cannot take the entire blame as the National broadcaster has equally pulled the plug on creating job with their Mondays flagship programme, “Sports highlights” The programme aired between 8 o’clock to 9 o’clock pm is sponsored by the telecom giant MTN, while the local league is supported by Glo Ghana, another mobile network. Hence, with this brand sponsorship turf war the highlights of the local league cannot be reviewed weekly. This kills interest as European football is reviewed to the delight of ignorant football lovers, but to the detriment of the local premier league. This is taking place on the lop side of the knowledge that, when the local league is nurtured properly we stand to create jobs.

Recently, exercise books and other pamphlets come with pictures of celebrities from athletics, football to acting all from the Americas and Europe. No qualms to the total exhibition and advertisement of personalities from elsewhere, for the reason that, the world has become a global village. But, what this practice actually brings about is mentally schooling our children as to who they should see as superior role models. As the saying goes, train a child in the way he should go and when he grows up he will not depart from it. With these pictures been flaunted before kids, there is the greater probability that, these will grow knowing better such superstars as compared to our own celebs. Indirectly, we are making stars, personalities as well as creating opportunities for others to the demerit of ourselves. Do you think in your wildest dream, the American and European will be ready to market our celebs to the disadvantage of theirs? NO!! Besides, child development is an area the nation needs to be quiet interested. Because, if indeed the developmental stage of a child is not only seen as a critical period, but haven a “tabularasa” – clean slate – mind. Then, there is absolutely no wonder our taste for European football and Western products has become so intense that, it is rendering our stadiums empty, thereby shutting our football and local industries.

The unfortunate is currently happening to Sierra Leonean football as the country had to suspend her second round of local league for a while. As reported by the BBC and published in the Daily Graphic No. 18841, on Tuesday, May 15, 2012, page 62, the Sierra Leone Premier League has been suspended due to lack of sponsorship. Of course if the game in that country is not avidly patronized, how do you expect a company to invest the hard earned resources into such a fruitless venture? Then, value for money had not been achieved. Social corporate responsibility is different from corporate sponsorship. Hence, corporate sponsorship must at all times bring some level of return in the form of recognition to a product or brand in today’s world. Do not forget that, that same country had had the entire football league, from the Premier League to the lower divisions collapsed. Hence, there was no football system going on for some years. Is it returning? Remember, jobs are directly and indirectly lost. Mistakes of the dead are examples for the living.

Are my fellow Ghanaians reading? Dr. Kwame Nkrumah once said our radio will be the “Okyeame” of Ghana’s development and not for the purposes of cheap entertainment.

From: Patrick Twumasi 

E-mail: patricktwumasi@yahoo.com