Solomon Serwanjja, the Ugandan investigative journalist who won this year’s BBC World News Komla Dumor Award has credited his success to inspiration from the work ethics of the late Komla Dumor. Serwanjja had last week beat other nominees from across Africa to clinch the prestigious Komla Dumor Award instituted in honour of one of Africa’s finest journalist, a presenter for BBC World News died suddenly at the age of 41 in 2014.
Solomon Serwanjja
Serwanjaa, an investigative journalist and news anchor and a presenter at Uganda’s NBS TV,where he hosts one of the channel’s prime-time shows.
Speaking on what inspired him to win the prestigious award; Mr. Serwanjja said that Komla Dumor’s work ethics and what he brought into journalism was it for him. Speaking further he narrated how Komla brought so much to the African narrative– “his perspective was a breath of fresh air, as he believed Africa was rising and that
the world required to envision the continent from a different angle”.
He added that Komla’s reports always struck a chord with him, and that he feels the same passion for the continent that he demonstrated.
“I wish to continue his legacy by telling stories that forged a spotlight not just on the vital challenges we have a tendency to face in Africa, but also the progress and successes that have been made”.
Serwanjja was a well-known journalist and his passion for fact-finding journalism highlighted his desire to make positive amendment in his native country of Uganda.
Serwanjja impressed judges not only with his eloquence and passion for telling African stories, but as well with his commitment and bravery in uncovering what’s in the public interest. He has also produced award-winning reports, including one for BBC’s Africa Eye Programme about the illegal sale of prescription drugs. Serwanjja is the fifth winner of the award, following in the footsteps of Waihiga Mwaura, Amina Yuguda, Didi Akinyelure and fellow Ugandan Nancy Kacungira.
The Award entails Serwanjja spending three months at the BBC’s London office where he will report on a story. Speaking on the Award, the Director of BBC World Service Group Jamie Angus said that to recognize and empower some of Africa’s leading talent in journalism in honour of Komla is really important to the BBC. The organization he said will be happy to have Mr.Serwanjja at its London office to harness Komla’s commitment to telling Africa’s stories. It could be recalled that Komla Dumor joined the BBC African Service in London as host of the radio programme Network Africa.
From 2008 to 2012 he presented the world today on the BBC World Service.
In 2011 Dumor began presenting the world News and Africa Business Report on BBC World News and early mornings on BBC One and also the BBC News Channel.
When the latter was relaunched in 2013, fellow BBC correspondent Lerato Mbele was chosen as host. Peter Horrocks, the BBC’s Global News Director described him as a leading light of African journalism, committed to telling the story of Africa as it really is.
At the time of his death, Dumor was the sole West African newscaster on BBC World News.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.
Since the inception of President Julius Maada Bio’s administration in 2018, Mohamed Rahman Swaray, Sierra Leone’s Minister of Information and Communication has been outstanding in driving the Ministry to contribute meaningfully to the development of the country. In this interview, Swaray speaks on how the Ministry is using ICT to leapfrog Sierra Leone into a digital economy.
WHAT is the thrust of this government’s telecoms policy?
As Sierra Leone is engaged in a digital transformation drive, the telecommunications policy thrust gears towards ensuring that telecommunications services such as mobile voice, data and broadband are improved to such an extent that they contribute significantly to the country’s socio-economic development. This, according to the Digital Transformation Roadmap, would be achieved by creating the enabling environment for availability, affordability, accessibility and reliability in the delivery of telecom and Internet Services nationwide.
To achieve these objectives, the Government intends to utilize ICT as an enabler by diffusing it into the cross-cutting strategies of all growth sectors including agriculture, mining, tourism, financial and entertainment industries as well as service delivery sectors such as education and health. At the same time, ICT would be used to influence and promote equity, transparency and accountability in the socio-political sphere so as to create wealth and jobs.
What do you consider as the major achievements of the present administration towards improving telecommunications since its inception in 2018?
Since 2018, upon taking up office, His Excellency the President made it clear that he desire to use ICT to leapfrog Sierra Leone into a digital economy. Against this background, the Ministry of Information and Communication, under my leadership, has made significant drives toward achieving the President’s goal by working towards improving ICT with the telecommunications at the heart of it. Some of these achievements include negotiating and obtaining Concessionary Loan of USD 30million, through Exim Bank of China, for the much-needed upgrade on the National Fibre Backbone Infrastructure Project. This is meant to address gaps and weaknesses in the existing network and eventually provide ring protection to the transmission infrastructure across the country. This project will also provide Provincial Metro Access Network as well as connectivity for schools, hospitals and other government offices nationwide.
The Ministry has equally initiated engagements with relevant stakeholders, both in the public and private sectors, to kick-start the procurement process for the deployment of a Digital Terrestrial Multimedia Broadcast (DTMB) platform based on DVB-T2 technology. The technical design of the turnkey project will cover the country with ten main sites with powerful DTTB transmitters. This framework provides for the implementation of DTTB project that is fully aligned to the overall government goal of improving the broadcast sector nationwide and reaching out to the underserved populace.
Another milestone recorded is the formulation of Cybercrime Law. The Ministry is collaborating with the Office of the Attorney General and Minister of Justice to draft appropriate legislation on cybercrimes. This law will facilitate the domestication of the Budapest and Malabo Conventions while enhancing international collaboration for cybercrimes. The Ministry through the Council of Europe is collaborating with GLACY+, which is a Joint project of the European Union (Instrument Contributing to Peace and Stability) and the Council of Europe. Through the collaboration, the Ministry aims to strengthen its capacity to develop and implement appropriate legislation on cybercrime and electronic evidence and enhance their abilities for active international cooperation in this area.
We intend to Review the National Telecommunications Act 2006 (as amended 2009/2015). The nascent law will be called the Sierra Leone Electronic Communications Law and is expected to be enacted this year. It is meant to transform the regulatory environment so as to make it predictable and competitive.
A new bill known as the National Electronic Transaction Bill is at the pre-legislation stage. Once it is passed, it would enhance the admissibility of electronic document/evidence in legal proceedings thereby promoting e-Commerce and improving the country’s rating in the World Bank Doing Business Reform and financial transactions rankings. The adoption of electronic transaction service will also be crucial to the transition of Sierra Leone’s economy from over-dependent on agriculture and mining, to a digitally-enabled economy.
The Ministry is equally engaging partners on safer use of the internet. Indeed, as part of its strategy to create an inclusive digital Sierra Leone, the Ministry joined other countries around the world to observe this year’s Safer Internet Day (SID) as symbolic call to action for all stakeholders to play their part in creating a better internet for everyone, especially for younger users.
Information Communications Technology holds the key to the future of the world economy. What efforts is the government making to ensure that a new generation of tech- savvy Sierra Leoneans are equipped for the knowledge economy?
With the advent of numerous new technologies and the strong desire and willingness to match with other highly digitalized skilled countries around the world, Sierra Leone, under the leadership of His Excellency the President, rtd. Brigadier Julius Maada Bio has set a clear Digital Transformation Roadmap to leapfrog Sierra Leone into a digital economy. To demonstrate the Government’s readiness for digitalization, there are benchmarks set by this Administration to ensure our youths are involved hugely in technology and impact positively in the drive towards a digital economy. One of them is the establishment of the Directorate of Science, Technology and Innovation in the Office of the President to seed, test and scale innovations to drive e-governance and service delivery.
The second is the review of existing school curriculum to include ICTs and Innovation from primary, secondary to tertiary levels nationwide. The third benchmark is making internet services available, accessible and affordable, even to the least privileged. The fourth point is that we also providing free quality education for all since literacy is the foundation for using tech devices.
Finally, we are engaging the private sector and the universities to establish innovation hubs, a coding school and other technology-focused incubator and accelerator programmes.
How would you rate the application of ICT in other areas such as education, health and banking in Sierra Leone?
This Administration has prioritized leveraging on science and technology across Government whilst working to develop robust and secure IT infrastructure that will allow proper implementation of e-governance systems, applicability of artificial intelligence/machine learning platforms, blockchains and IoT hence making Sierra Leone a conducive digitalized ecosystem. This infrastructure will provide not only the internet for the masses, but offer a robust road for Sierra Leone to propel towards the digital economy.
To demonstrate its interest in these areas, the Ministry organized a laudable education programme where civil society activists, Local Council representatives and Ministries Departments and Agencies (MDAs) were represented to discuss and design a road map for the transformation of Sierra Leone into a Digital Economy.
In almost all MDAs, the presence of this new change ranging from infrastructure design and implementation of locally developed digitalized systems by IT personnel have been a priority.
Our banking institutions can now boast of digital running applications which shows sign of increase in broadband connectivity. The SIM KORPO application used by Rokel Commercial Bank and the Orange money transfer by Orange Mobile Company, are two of the few examples of digital financial solutions currently being used by citizens. Numerous digital applications are presently being used in Sierra Leone as a means of promoting actual availability of undisruptive connectivity and internet services to our people.
Finally, seeing private entrepreneurs active in the use of innovative technology to run their businesses is a massive boost in the right direction. I was overwhelmed to conveniently use the TAP TAP vehicle services app the other day with proper data security and affordability.
In this age of the Internet of Things (IoT), what are the efforts of your Ministry to improve on internet penetration in Sierra Leone?
The combination of an increase in population, increasing demand for technology use, Government’s priority on digitalization, the introduction of technology into educational curriculum and the increase in the use of smartphones, GPS tracked vehicles, smart kitchen utensils, smart home devices and other digital devices, are the reasons why this Administration is focusing on making Sierra Leone a sustainable internet ecosystem. Some of the efforts we are making in this direction include reduction in the bulk purchasing cost to Internet Service Providers which in turn created a ripple effect to end-users; securing funds for the completion of the fibre backbone nationwide connecting institutions such as universities, schools and other essential institutions up to the last mile. In addition, we are increasing the deployment of resource centres to provide access to information through the internet at minimal or no cost and promoting the need for efficient and affordable electricity supply.
What is the outlook for your Ministry?
The Ministry is working to create the enabling environment for Sierra Leone to become a digitally inclusive society with ICT as a means to unleash the innate potential of every citizen to leapfrog the country into a digital era. This vision is also consistent with the ‘Leave No One Behind’ mission of the United Nations as espoused in the Sustainable Development Goals (SDGs) and the ‘Africa we want’ principle of the African Union adopted in its 2063 Vision. To achieve the above strategic vision, the Government realizes that the sector requires critical interventions to enhance its role as an enabler to economic growth and social progress. The Ministry aims to improve the leadership, Governance, coordination and partnerships in the ICT sector; Improve and upgrade ICT related policy, legal and regulatory frameworks; and improve ICT Infrastructure and access. We are also working to improve ICT human capacity, digital skills and knowledge; improve electronic Governance for enhanced public service delivery; improve Information and Cyber Security; and introduce the use of ICT in curbing corruption.
The Ministry is also developing the framework to design a National Digital Transformation Roadmap along with these areas. The strategy, when completed, will outline Government’s roadmap for the overall development of the ICT sector and present a blueprint to project Sierra Leone into the digital economy.
The ICT landscape will continue to evolve in various directions, and the Government will strive to create an enabling environment that provides equal opportunities for stakeholders in different areas of the country to take part in the process. In this context, cooperation, coordination and productive dialogue between policymakers and other stakeholders will remain instrumental.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.
According to data curated by Maxime Bayen, GSMA Ecosystem Accelerator’s Insights Director, just in the last 7 months, January to July 2019, African startups have succeeded in raising close to $225 million in funding. While South Africa had 33.3 per cent share of the startups invested into in Africa during this period, Nigeria’s shares represented about 24%. Maxime Bayen pulled together a total of 44 start-ups from nine African countries for his enquiries.
The list was mainly dominated by startups from South Africa, Nigeria, and Kenya. While South Africa saw a record number of 15 startups on the list, 10 startups were from Nigeria while 8 were from Kenya. Uganda got three, Ghana and Egypt got two, while Mauritius, Zimbabwe and Zambia one each.
According to data curated by Maxime Bayen
Here Is Why The Above Facts Are Interesting:
Although 2019 is not yet over, it does appear that Nigeria has displaced and is now leading others, including Kenya (Africa’s top startup funding destination in 2018) as the top ecosystem with the highest amount of funding this year. However, should 2019 end with Nigeria’s total fundraising amount still below $250 million (including Kobo360’s $20m recent funding from Goldman Sachs), Nigeria comparably would trail Kenya’s performance in 2018. Kenya in 2018 raised a record $348 million in startup funding, the highest ever amount raised by any African startup ecosystem in years. The current year figure would also mean that 2018 was the best year for African startups in terms of the total funding raised.
The above facts are also interesting because even though Nigerian startups secured the most funding, more South African Startups secured funding above $1 million compared to other startup ecosystems, with over 30% of the startups that raised funding above the $1 million threshold in Africa found in South Africa.
Below, we consider why more startups in South Africa are raising funds compared to other startup ecosystems.
A Large Presence of Local Investors And Equity Funds
South Africa unlike, other African startup ecosystems, has a very large presence of local investors such as venture capital funds, angel investors and other private equity funds who are increasing their stakes in local startups.
Indeed, while other African startup maintain little or no presence of sigificant early stage investors, South Africa has more of these ventures. Top South African companies in 2016, for instance, launched the R1.4-billion SA SME Fund, a VC fund to co-invest alongside various investors (not solely VC investors). SA SME Fund CEO Ketso Gordhan further said the fund would invest over R1-billion or 75% of its R1.4-billion funds in black-owned small and medium-sized enterprises, including tech startups.
Just recently, South Africa’s SME Fund and the government’s Technology Innovation Agency (TIA) also announced a public-private partnership to co-invest R350 million across three venture capital funds. A Memorandum of Understanding (MOU) was signed between TIA and SME Fund at the Innovation Summit in Cape Town on Friday 13 September, 2019. The partnership sees over R350 (over $23 million) invested in three venture capital funds. These fund managers will invest in a portfolio of early stage businesses and provide capital, as well as other support, to the entrepreneurs, to help them commercialise technologies and grow their businesses. The South Africa’s SME Fund’s mandate to the three fund managers includes a requirement that they invest at least 50 percent of the fund into businesses owned by black entrepreneurs.
Source: the latest Southern African Venture Capital and Private Equity Association’s (Savca) Venture Capital Industry Survey
Notable active VCs in South Africa include AngelHub Ventures which today provides pool funding, expertise and networks to foster startup growth. The firm has supported startups such as GoMetro, Snapplify and AmaLocker. 4Di Capital through its Early-Stage Technology Fund 1 is aimed at startup investment opportunities with big growth potential at the seed and early stages in the mobile, enterprise software and web sectors. 45i Capital apart from running Grindstone Accelerator, has invested in Sensor Networks and Aerobotics. Knife Capital’s recent achievements include the exit of radar startup iKubu to Garmin in 2015. In 2017 Knife Capital invested in its first international deal, increasing its investment in 2018 in healthtech 5nines Technologies.Business Partners in 2012 launched a R400-million VC fund. Armed with that, it made investment in 19 South African startups. Business Partners funds startups in the clean energy, agri-processing, biotech and ICT sectors up to R25-million. Kalon Venture Partners has invested in companies such as SnapnSave, i-Pay and The Sun Exchange. See this article for more information. Edge Growth has a pool of over R900-million of early stage venture capital and has invested in more than 45 deals since launching its first fund in 2010. Its investment include funds for startups Sweepsouth, Mobenzi, Pioneer Academies and Everlytic. Invenfin is an early-stage venture capital fund that looks at ventures across all industries. Some notable portfolio members include ArcAqua, Ad Dynamo and Bos Brands.
The table below shows that more South African investors invested in local startups than any other African local investors doing same for their local startups between January and July, 2019.
Additionally, South Africa Receives More Share of All Private Equity Investments in Sub-Saharan Africa
In addition to the numerous local investors, South Africa is also receiving a wave of investment from international investors and private equity firms. According to Asoko Insight , South Africa is the main target of investment on the continent with 39% of the total offices set up by these investment firms. Kenya comes second with 14% and Nigeria is third with 13%.
The Increasing Role Of Crowdfunding
2019 has quite been significant for South African startups, with Intergreatme and Beerhouse raising substantial sums from Uprise.Africa, a crowdfunding platform in record-breaking deals. Crowdfunding refers to raising money from the public (who collectively form the “crowd”) primarily through online forums and social media. At a time when most African countries are yet to open their doors up to crwofunding, South Africa is increasing the chances of startups raising capital through this means. Enabled by the friendly legal framework on crowdfunding in South Africa, Africa’s first equity crowdfunding, Uprise.Africa, and South African alternative exchange ZAR X recently entered into an agreement that will see the mini stock exchange list any up-and-coming entities, which have already successfully raised capital via crowdfunding, and freely trade their shares on the open market. Not only could the arrangement be the funding gap filler that fledgling South African entrepreneurs desperately seek, but it could bring the local capital market to the people. The partnership also solves the fundamental flaw of all other pre-IPO models, namely that once a company has issued the shares they remain fairly illiquid, with investors having their funds tied up until that company looks at going public. Tabassum Qadir, co-founder, and CEO of Uprise.Africa says they plan to conclude at least three deals a month.
“We are simplifying venture capital through this mutually beneficial partnership for both entrepreneurs and investors,” Qadir says.
Reducing The Risk Exposure of South African Startup Investors Through Legislation
One significant role government has played in enabling more inves in South African startups is the introducing in 2009 Section 12J tax incentive, which gives tax relief to investors for investing in qualified Venture Capital Companies (VCCs). The objective of section 12J is to create and maintain employment and to grow the economy and ultimately the tax base. The incentive allows investors who make investments in approved VCCs — that then invest in qualifying small companies — a tax deduction. Section 12J was introduced with a “sunset clause” that takes effect on 30 June 2021. It is not clear whether the incentive would be extended.
By operation, Section 12J, enables venture capital firms to upon investment in an approved venture capital company (VCC), claim an income tax deduction in respect of the expenditure actually incurred to subscribe for VCC shares. For example, if an investor subscribes for shares in an approved VCC for R100,000, that taxpayer will be entitled to an income tax deduction of R100,000 against taxable income.
Historical VC Investments in South Africa (2009–2018) — Source: the latest Southern African Venture Capital and Private Equity Association’s (Savca) Venture Capital Industry Survey
Historical VC Investments in South Africa (2009–2018) — Source: the latest Southern African Venture Capital and Private Equity Association’s (Savca) Venture Capital Industry SurveyStatistics reveal that the value of venture capital investments grew by 33% to R1.160 billion in 2017. The popularity of these investments is clear, and understandable given the high tax burden on individuals without it. In fact, in 2018, about 41% of all deals by value were in startup capital.
Other notable South African startup ecosystem boosters include a large presence of incubators and other private equity firms.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world
Swvl just made in roads into Kenya, but all that has been put to a stop by Kenya’s National Transport and Safety Authority (NTSA), the authority in Kenya in charge of road use and safety. Digital public transport services SWVL and Little Shuttle were asked to cease operations or face arrests for operating under Tour Service License but engaging in commuter services.
“We have shut down their (Little and SWVL) licenses because there are comprehensive regulations on how to operate a PSV,” NTSA director general Francis Meja said.
Here Is All You Need To Know
SWVL and Little Shuttle were poised to disrupt the public service sector by providing booking options, extra comfort and scheduled departure times in the chaotic segment.
In a notice from the NTSA Deputy Director Communications Dido Guyatu, the authority said it has blacklisted specific vehicles operating under the two companies and their TSL invalidated.
NTSA indicated that both firms had been notified of the suspension of operations until the necessary licenses for operating PSV’s were obtained or an exemption from the authority.
“Let them just follow the law so that we can facilitate them to do business in Kenya. Let them come to us… we are open for discussion to allow them do business in Kenya. It’s a fact that you cannot do business in Kenya without a proper license,” said Mr Meja.
In his response, Little Shuttle CEO Kamal Budhabhatti said the company is seeking audience with NTSA on a way forward.
“The buses we operate have countrywide TLB license, which allows us to move on any route. We do not operate as a matatu on fixed route. Our route is based on supply and demand software technology,” he said.
Compliance With The Suspension
A spot check by Nairobi News on Tuesday on Tuesday in Nairobi established that SWVL was still ferrying passengers despite the suspension.
The company’s General Manager in Kenya, Shivachi Muleji, said they are in talks with the government to ensure that they are fully compliant.
Egyptian start-up app SWVL currently has 150 buses on 100 city routes and last month indicated that it would inject Sh1.5 billion into the Kenyan market.
Meanwhile, it is still unclear when Little Shuttle will return to the road.
The app-based service allows users to book trips using their mobile devices, which notifies them of the nearest pick-up point, price and time by the bus.
The driver’s contact and registration number of the vehicle as well as live map update appear on the app interface for easy identification once the buses arrive.
Swvl’s Operation In Kenya
Swvl recently invaded its Kenyan market with over Sh1.5 billion ($14.5 million) investment to finance an aggressive route expansion plan in Nairobi.
Swvl, already operational on multiple Nairobi routes, has set a target to grow its network to 500 routes served by 1,000 buses.
The app-based public service transport operator that launched in Nairobi on a test basis seven months ago has already signed up 150 buses on 100 city routes.
The firm, which started in Cairo, is seeking to take advantage of Nairobi’s chaotic and largely unreliable public transport system.
“Kenya is a market with a need for a stable solution for the perennial traffic snarl ups and SWVL believes that we can be of great benefit to the local consumer and the transport sector as a whole,” said Mr Kandil.
The tech company leases the vehicles that currently include 11-seater and 14-seater vans as well as 22-seater shuttles at a daily rate of $70 (Sh7,000) and $150 (Sh15,000) to ply the various routes. It tops up the daily collection if the earnings for the day are less than the daily leasing amount, but collects any income above the agreed rate.
The app-based service allows users to book trips using their mobile devices, which notifies them of the nearest pick-up point, price and time by the bus.
The driver’s contact and registration number of the vehicle as well as live map update appear on the app interface for easy identification once the buses arrive.
“We’re building a mass transit system. The investment will keep us going in this market,” said Shivachi Muleji, SWVL general manager for Kenya.
The firm says its popular routes include Ruiru to the CBD/Upper Hill, Karen to CBD/Westlands via Upper Hill, Ongata Rongai to Westlands/CBD via Upper Hill, Ruiru to Westlands, Ndenderu to CBD/ Upper Hill, and Kikuyu to CBD/ Upper Hill.
According to Mr Muleji, the company is in negotiations with local Ford dealers and a financial institution to provide vehicles at 20 percent cheaper than the market rate as well as financing options for drivers. This is aimed at growing its bus network to meet the demand of the planned route expansion. The app company, which has received pushback on some of its routes from PSV (matatu) operators, says it is engaging some Saccos in the sector to invest in the business.
The service currently charges a flat rate of Sh200 but has plans to offer distance-based pricing at the end of 2019 or early next year.
“Kenyans are picky consumers so you have to offer a premium service for the extra 10 percent you charge,” said Mr Muleji.
Tech-based solutions in the transport sector have been causing a ripple locally with Uber making its entry in the taxi business several years ago despite protests by taxis at the onset.
Kenyan-based Little Cab also offers a similar shuttle service in the market while Safiri is still in the pilot stage of data collection.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world
SportPesa, Kenya’s leading online sports betting has folded up. This is the second and possibly the last sign that it has been incapacitated by the new tax regime introduced by the Kenyan government against gambling firms. The first was when it pulled sponsorship from the country’s sports teams after the government in Nairobi hiked gambling tax rates from 7.5 to 35 percent.
This tax decision will have a damaging impact on both customers and treasury,” the company stated in its reply. “Further compounded by the currently in-effect 20% Withholding Tax on Winnings, the economic incentive to place bets will be completely removed as the taxes will deprive consumers of their total winnings. This will have severe consequences for licensed betting companies, which dutifully pay their taxes and ultimately will lead to a decline in government tax revenue to near zero and will halt all investments in sports in Kenya.
Here Is All You Need To Know
SportPesa and other sports betting entities have faced significant government opposition in Kenya.
Last month, Uhuru Kenyatta, the country’s president, called on lawmakers to ban gambling. His call came after the country’s Betting Control and Licensing Board ordered telecommunications companies to suspend the shortcodes and paybill numbers the sportsbooks used to exchange funds with their customers.
Part of the backlash from legislators stemmed from social concerns. One lawmaker noted a rise in suicides from young men who took up betting on sports through their mobile devices.
Kenyan officials also expelled nearly 20 foreign business leaders who were working for sportsbooks in the East African nation.
SportPesa and Betin then joined forces to file a lawsuit against the government, but that the country’s Supreme Court dismissed the legal challenge. In doing so, Justice John Mativo noted SportPesa’s license had expired, which meant the company could no longer operate legally until it reapplied for one.
Major Sponsor in Soccer
Even with its troubles in its native country, SportPesa still enjoys a relatively high profile in Kenya’s sports betting industry. This is thanks in part to the sponsorships it holds with soccer teams and leagues across the world. That includes Everton, in England’s Premier League, and Hull City, which plays in England’s second-tier Championship league.
However, even British lawmakers have begun to question whether its professional soccer teams should enter into partnerships with sports betting operations.
SportPesa also serves as the official African betting partner for LaLiga, which runs the top soccer leagues in Spain. It also sponsors Italian club Torino FC.
“If local communities enjoy it, we know that our involvement can be an extremely positive influence for all concerned,” SportPesa says on its partnerships page. “While we offer valuable financial support, we also go much further: helping clubs build capacity and join corporate social responsibility initiatives to create value for players, teams, communities, and businesses.”
Mass layoff
The move comes after another firm, Betin, sent home all its employees saying they have run out of finances.
According to the firm’s management, efforts to hammer a deal with the government which could have seen it resume operation have failed, forcing the firm to send home employees.
“Management has had several extensive meetings with the government entities regarding the company’s licence without much success,” read an internal memo signed by the managing director.
“Given all these, we have had financial constraint as you might all expect. As a result of the deterioration of the profitability, the management has had to rethink its operating model and to proceed with the exercise of termination on account of redundancy.”
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world
GE Healthcare has announced the appointment of Maria do Rosario Boavida as the Country Leader for Angola. Maria is the first Country Manager for GE Healthcare in Angola. Ms. Boavida will lead the market strategy and growth plans for GE Healthcare with public and private sector partners in Angola.
According to the General Manager GE Healthcare West, Central and French Speaking Sub Saharan Africa, Eyong Ebai, this appointment is in reiteration of the company’s commitment to work together with the government and private sector in order to develop sustainable outcome-based healthcare solutions in an effort to support Universal Health Coverage (UHC) in Angola. He added that empowering decision-making at a local level is at the core of the company’s localization strategy for Angola. “We believe that Maria’s appointment is a further step in making our vision for the country a reality. We are also glad to bring on board someone with the experience in the healthcare industry and passion for the Angolan market to continue to drive our growth and meet our customers’ healthcare needs in Angola,” he said.
General Manager GE Healthcare West, Central and French Speaking Sub Saharan Africa, Eyong Ebai
Maria brings over 30 years experience in the pharmaceutical industry having worked extensively in Portugal as well as Angola. In the last 10 years, she has held top managerial positions in the pharmaceutical industry working in Portugal as well as in Angola. She has been living in Angola in the last 10 years holding top managerial positions in companies such as Bayer HC where she was responsible for implementing, delivering and developing the pharmaceutical business specifically in the areas of Family Planning and Cardio diseases.
Maria later joined Sanofi as the Country Manager for Angola where she introduced and implemented the use of insulin in diabetic patients by managing a program for healthcare professionals in both public and private sectors in Angola. It is from Sanofi that she joined GE Healthcare in June 2019.
Speaking on her appointment, Maria do Rosario Boavida said that she is honoured and excited to take on this role to lead GE’s Healthcare business in Angola, “as we deliver on our mission of improving lives in moments that matter,” adding that “as a leader in healthcare, we will continue to align our solutions and initiatives with the country’s National Health Development plan to assure access to basic health care for all people of Angola.”
With over 120 years in Africa, GE is working with governments, NGOs and private sector partners to drive access to quality and affordable healthcare services through new delivery models in primary healthcare, providing capital solutions, advancing skills for healthcare professionals and providing technologies and innovations with clinically and economically relevant value propositions.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.
The Aga KHAN Architecture award has been won by Alioune Diop University in Bambey, Senegal for producing five Laureates of the 2019 awards from its teaching and research department and setting a new standard of excellence in architecture. The University had as presentation, a design of the architecture of a building with bioclimatic design, due to the unique environmental resources. A large double-roofed canopy and a mesh have been installed to prevent direct sunlight and allow air to circulate through it. The judges noted that this was highly innovative in line with what the Award hopes to achieve by getting students and faculties to think outside the box.
New lecture room block at the university comprises a 500-seat amphitheatre, classrooms for 50 or 100 students, laboratories and technology rooms, and offices for lecturers in the faculty of applied sciences and ICT. The building is a simple construction of concrete blocks cast on site, covered with mortar and steel latticework. It has a large double roof and a great lattice covering the south facade, which avoids direct solar radiation but remains permeable to air. To solve the lack of sewers and water supply issues, the architects incorporated infiltration rafts with vegetation that collect rainwater, and waste water is purified through an ecologically-sound system that uses activated sludge.
Speaking on the Award, the Director of Environment and Security at Alione Diop University Sidy Camara said that they looked at an intelligent building that allows them to be self-sufficient in energy, which is a good thing in the countries due to the high cost of energy. Continuing, he said that water and acidity management was very important in the design that was why the building was designed such that the water from the building is recovered in the filtered basins, which makes it possible to water the plants, while even the water from the air conditioning is recovered in the basins, which is a major innovation.
The university which was founded in 2007, was part of the Senegalese government’s efforts to decentralize education and encourage young people to stay in rural areas, the university opened its doors in 2012 growing in staff and adapting to the climate change in Bambey. In addition to its unprecedented structural aspect, its research helps to slow migration to urban areas. The Director of the University Alione Diop speaking about the innovations the university adopted in constructing its buildings said that “most students often complete their studies in Dakar, but now they have the opportunity to do so locally, as you said, in a building that has temperature control”.
According to the Chief of Cabinet at the Senegalese Ministry of Education, Ibrahim Wone “this victory can have a great impact in Senegal and Africa because the building was created by the environment – by taking the temperature of certain local realities, etc. – it is a great one that can have a great impact on Senegal and Africa and can be replicated everywhere”, adding that this victory can have a great impact in Senegal.
The prestigious Agha Khan Award for Architecture award is given once every three years and it comes with a prize of one million US dollars.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.
The Democratic Republic of Congo (DRC), sub-Saharan Africa’s largest country, is known for being a tough place to do business but also one of unexploited economic potential. Although the country has had a dark cloud looming over it for years, it recently held its first democratic transfer of power since it gained independence from Belgium in 1960. And like other African countries, the DRC is in pursuit of a stronger and thriving economy. The IMF has the country’s economy‘s growing at a rate of 4.3% in 2019; and nothing suggests that this will not improve in the future.
Koketso Lediga, Managing Director of Infra-Afrika Agency
For the DRC, the pursuit for a thriving economy is well within reach given its endowment with vast natural resources that could enable it to be a contributor to Africa’s economic growth and global supply of raw materials such as copper. The DRC’s new government seems to be committed to exploiting these natural resources, as demonstrated through the several sector reforms that have already been implemented. The most impactful, both short and long term, being investment infrastructure development & renewable energy, amendments to mining and oil & gas legislation as well as its participation in the Extractive Industries Transparency Initiative.
In respect of infrastructure and energy, the DRC captured global attention with the world’s largest proposed hydropower scheme known as the Grand Inga project. A project that aimed to generate about 40,000 megawatts of power from water sourced at the mouth of the Congo River. This amount of energy can cater for a multitudinous size of the population in and beyond the borders of the DRC. Although this magnificent 6-phase project did not come to become reality, the country is fervently building synergies to improve its infrastructure and provide sustainable and stable energy supply for its citizens.
In May 2019, the DRC’s Ministry of Energy and Hydraulic Resources and the multinational clean energy company, Hanergy Thin Film Power Group signed a strategic partnership framework agreement for a 400MV solar power plant. The addition of 400MW onto the grid will go a long way with reducing the electricity scarcity that plagues parts of the country. The Ministry has communicated its commitment to meeting the country’s original target of 65% electrification by 2025. This of course will go a long way towards achieving the 2030 Sustainable Development Goals of universal access to electricity.
The DRC should be applauded for opting to sign a framework agreement which has the ability of creating an environment for parties to identify their common commercial goals. The benefits of framework agreements have been accepted by a number of seasoned lawyers. Duncan Wallace, a member of the UK bar, is of the view that framework agreements can be a commercial motivation for contractors to behave less opportunistically when additional projects, such as those that flow from traditional framework agreements, are on offer.
In July 2019, governments of the DRC, Burundi and Rwanda signed a project agreement for the construction of the Ruzizi III hydropower project. The proposed Build, Own, Operate, Transfer (BOOT) structure is beneficial to all countries as a large portion of the risk will sit with the concessionaire and minimizes the public cost and debt for infrastructure and energy development. Furthermore, this public-private partnership, if executed successfully, will undoubtedly improve the lives of millions in the three countries.
In addition to the developments in respect of renewable energy, the country has made stride in the infrastructure sector, with the new 34-km road which directly links the Kamoa-Kakula copper project, a mining project in the DRC and the Kolwezi airport in Zambia. The completed project will enable the unrestricted flow of trade between the two countries as it will be used to bring in mining equipment & construction materials as well as to transport copper concentrates. Given the African Union’s launch of the “operational phase” of the African Continental Free Trade Area, the economic benefits of this corridor are endless.
Although the DRC occupies the 184th place (of 190) in the World Bank’s Doing Business 2019 report, the country has made strides in achieving political stability and improve its governance to pave way for economic growth and energy and infrastructure development. And as a result, creating a conducive environment for foreign direct investment.
Koketso Lediga is the Managing Director of Infra-Afrika Agency.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.
For one thing, startups in Egypt are proving that any sector is capable of securing funds, despite the growing excitement for fintechs, transport or logistics. Cairo-based on-demand printing services platform PrintX has raised $150,000 investment to enable it build its on-demand printing services platform.
Here Is The Deal
The investment came from a Saudi-based angel investor Mohamed Elbazz.
The startup which was previously using its website to maintain its online presence only plans to use the investment to launch an online platform that will offer different on-demand printing services to both individuals and businesses.
The users will be able to preview the designs on different products (t-shirts, mugs, etc.) before ordering them. They will also be able to track their orders on the platform, PrintX’s co-founder and CEO Abdelrahman Gaber told MENAbytes.
The startup will also continue to use their offline model as well for businesses that according to Abdelrahman has been doing fairly well.
PrintX that has its own printing press to support its business will use a part of investment to first expand its services all over Egypt.
They want businesses all over Egypt to be able to order printing services from PrintX. The startup will print the ordered products in Cairo and ship them all over the country.
PrintX also has plans to expand to Saudi next year.
This Investment From Marks A Continued Appetite For North Africa’s Startup Ecosystem By Saudi Investors
In recent times, investors from Saudi Arabia are increasingly committing more funds into the North African startup ecosystem. Just recently, Tunisian startup Dabchy, a peer-to-peer (P2P) fashion marketplace raised $300,000 in a seed round in which Saudi Venture Capital Company (SVC) participated. Egypt’s Yumamia, also raised $1.5 million in its Pre-Series A funding round earlier this year with Saudi Arabia-based boutique consulting firm, Pure Consulting leading the major investment. Other notable North African startups that raised funds from Saudi Ventures include Egypt’s Glamera which raised $250,000 in a seed round from a Saudi angel investor, among others.
Founded in 2017 by Abdelrhman Gaber, Mostafa Ali and Ahmed Shahin, PrintX (being built — not available) has been providing different printing and production (flags, booths, etc.) services mostly to businesses using its offline setup.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world
Analysts say the success of the process will be measured after the country gets the real picture of the total money in circulation.
Economist Tony Watima observes that there is not much evidence of curbing black money through demonetisation.
When the Central Bank of Kenya and the 42 commercial banks in the country shut doors to their branches Monday, all the old Ksh1,000 notes ceased to be legal tender.
The Ksh1,000 note is equivalent to about $10.
CBK Governor Patrick Njoroge has said as soon as his computers were switched off at the close of business Monday evening, all the bank notes not yet converted became worthless pieces of paper.
CBK Governor Patrick Njoroge
Many banks closed by 4pm Monday, which means that this was the actual deadline and not midnight Monday.
The CBK has said it would destroy all the old notes collected as the final stage in the four-month demonetisation process that officially ends Monday.
Analysts say the success of the process will be measured after the country gets the real picture of the total money in circulation, even as it becomes clear that it will be impossible to collect all the Ksh217 billion ($2.17 million) that the exercise was targeting.
POSSIBLE OUTCOMES
The CBK caught the country off-guard on June 1 when it announced the demonetisation after secretly printing the new generation bank notes and quietly gazetting the laws to give the notes a legal backbone.
The Central Bank chose a public holiday to launch its attack, seeking to rid the country of dirty money, tax evaders, terrorist financiers, money launderers and deal with counterfeiters.
But with the deadline here with us, it is emerging that the only thing the CBK is sure to have achieved is replacing the old Ksh1,000 notes with the new ones in line with the Constitution.
It is also probable that CBK will end up with a hole on its books estimated to run into billions of shillings if nothing out of the ordinary happens Monday.
This is because Kenyans have been in no hurry to return the money despite the massive awareness campaigns.
WAR ON FAKES
Most companies and retailers have not been accepting the old notes towards the end of the grace period.
On Monday, those who did not want to lose their money walked into a bank or a CBK outlet to convert or risk losing it.
In recalling the 217 million pieces of the old notes in a massive and expensive process that cost the taxpayer over Sh15 billion, the CBK had taken the war back to the doors of counterfeiters.
At the end of it, the bank hoped to suck back Sh217 billion, which represents 80 per cent of all the money in circulation, in a process that would redistribute it back in the economy.
So far there have been no arrests or prosecution of those caught with unexplainable wealth.
Either they had anticipated the June 1 action long before it came and converted the billions in US dollars before CBK came calling, or they opted to lose their loot.
BLACK MONEY
By September 1, only 24 people had walked into any of the commercial banks in the country with more than Ksh2 million ($20,000) to convert.
In fact, 99 per cent of those who converted the notes had Ksh1 million ($10,000) or less.
This means that either no one had more than the Ksh1 million ($10,000) or those who did decided to beat the system by breaking their loot into smaller amounts to escape the scrutiny of the CBK.
There was no rush and hardly did any bank witness scenes seen elsewhere in the world where panicked citizens arrived in banking halls with sack loads of money.
Mr Tony Watima, an economist, says that there is not much evidence of curbing black money through demonetisation, even if circulation of money is stopped as it has been done in Libya, Zimbabwe and India.
“This is because not all corruption income is necessarily cash income. In fact, majority of ill-gotten cash never remains idle, they are always locked in physical assets such as real estate, or high-value purchases, personal foreign travel and investment in unaccounted businesses,” Mr Watima said.
AMOUNT COLLECTED
The CBK has not been keen on giving statistics on the total value of money so far returned.
However by August, about Ksh100 billion ($1 billion) had been exchanged, which was nearly half of the Ksh217 billion ($2.17 billion) that was to be replaced.
In value terms, the CBK said 58 per cent of all the money exchanged by September 1 was less than Ksh500,000 ($5,000) while 75 per cent was less than Ksh1 million ($10,000).
The Kenya Bankers Association chief executive officer, Mr Habil Olaka, says the CBK does not have to print and issue new notes in the market to deal with the deficit, but it will have a better understanding of just how much money is out there in the market to inform its future decisions.
The KBA is the industry lobby that speaks for banks.
On its part, Kenya Forex Bureaus Association Chief Executive Officer Mohammed Nur Ali said it has been business as usual for members and the earlier anticipated spike in currency action by money launderers did not materialise.
PAUL WAFULA writes for The EastAfrican
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world
