Blog - Afrikan Heroes

Fenix reaches 500,000 customers in 6 markets and announces new leadership team

July 22, 2019

Fenix International, a company of ENGIE, offering Solar Home Systems across Africa has appointed co-founder and current COO Brian Warshawsky to the role of CEO.

Fenix International, a company of ENGIE, offering Solar Home Systems across Africa has appointed co-founder and current COO Brian Warshawsky to the role of CEO to drive the next phase of the company’s ambitious growth plans.

Warshawsky is succeeding Lyndsay Handler who has been with the company for 7 years and served as CEO since 2016. Warshawsky is well-placed to lead the company, having previously spent 5 years at Apple as part of the iPod Operations team before co-founding Fenix International in 2009. Having worked as COO with Fenix from inception, Brian has a deep understanding of the business from product design to manufacturing, country operations, distribution, and last-mile customer experience.

Ivan Topalov, who previously served as Corporate Finance Director has been promoted to Chief Financial Officer following the departure of the previous CFO, Josh Romisher, in June. The company has also appointed a new Head of Customer Credit, Alison Boess, reporting to the CEO.

Yoven Moorooven, CEO of ENGIE Africa, said, “Brian is a highly regarded leader with the right mix of skills and experience to lead this new chapter for Fenix as we continue to establish ourselves as the market leader across Africa. With commercial operations in Uganda, Zambia, Ivory Coast, Nigeria, Benin and Mozambique, Fenix is growing from strength to strength. Under Brian’s leadership, I’m incredibly excited about the future of our decentralized energy offering in Africa.”

He continued, “I join everyone at ENGIE and the Fenix team in thanking Lyndsay, Jit, and Chris for their many years of dedicated service and commitment to the Fenix Mission. Under their leadership, Fenix transformed millions of lives across the continent and built an inspiring team that is driven to succeed.”

Brian Warshawsky, newly appointed CEO commented, “While it is difficult to say goodbye to such incredible colleagues and collaborators through so many years, I’m proud to be able to continue their legacy. On behalf of the Fenix team, I would like to thank Jit for his technology leadership and the work he did to build Fenix Power, our next-generation solar home system platform.

I would like to thank Chris for his commercial and marketing leadership as Fenix grew from a few customers in Uganda to 500,000 customers across 6 countries in Africa. And I would like to especially thank Lyndsay for leading Fenix through so many milestones, most recently the ENGIE acquisition and establishing Fenix as the strongest off-grid solar home system company in the industry.”

He added, “Backed by a world-class product, a world-class team and with the full support of ENGIE, I am excited for what we will do to take our life-changing product to customers across the continent. We are now set for an exciting future as we continue our expansion across Africa and achieving universal energy access for all.”

Lyndsay Handler added, “Building Fenix from 2011 to 2017 and accelerating our growth following the acquisition by ENGIE in 2018 has truly been an honour. Together, we have delivered clean, affordable energy to over 500,000 households or 2.5 million people in six countries across Africa.

I am especially proud of the way we built a passionate Fenix team based in Africa who are deeply committed to our mission, values, and customers. Looking ahead, I am happy to pass the torch to our co-founder Brian and I am confident that the entire team will put the customer first in all that we do in Fenix’s next chapter. I hope that Fenix will continue to create new products and drive forward innovation so that clean energy is affordable to all at the last mile.”

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.

Facebook: https://web.facebook.com/Afrikanheroes/

Egyptian Startup Fawry Goes On Egypt’s Largest IPO

This is a major breakthrough for digital platforms across Africa. Less than 9 months after another technologically focused finance solution startup, Sarwa Capital, opened its shares for public subscription, Fawry, the Egyptian digital payment solution has announced it is ready to open itself to the public too by going on its First Public Offering (IPO )

Here Is What The IPO Is Going To Look Like

Although the IPO would come late August 2019 or early 2020, Fawry is only ready to list 36% or more of its stake in the company on the Egyptian Stock Exchange.
The company is eyeing proceeds between EGP 2 and 2.5 bn, which would make the offering the largest Egypt has seen since Emaar Misr raised EGP 2.28 bn in 2015.
It would also value Fawry at EGP 4.5–5.5 bn. The offering will consist of a substantial international component, with the roadshow is set to cover the GCC, European, US, and South African markets.
The offering will include a private placement for institutional investors and an initial public offering (IPO) for retail investors in Egypt at the same price, said investment bank EFG Hermes, which is managing the sale.
The offer price is not yet known as the bank did not give any indication on the expected offer price.
Fawry’s managing director this month told Reuters the company had begun preparing for the IPO on the Egyptian Exchange and that the process would be carried out in 2019 or early 2020.
Financial advisor FinCorp, which Fawry hired to conduct a fair value study, is due to submit its report to the Financial Regulatory Authority within two weeks, after which the book-building process will begin, the sources hinted.
Fawry’s expansion plans include increasing its points of sale, buying new payment machines, and developing Fawry Pay. Fawry also signed an agreement with Dubai Islamic Bank last month to launch a trial run of its services in the UAE this summer.

Here Is Why This IPO is Significant For African Technology Focused Startups

Fawry is owned by local and foreign investment banks and was founded in 2009. About 8% of its shares are in the hands of management and employees.

Fawry’s network processed 600.1 million transactions last year with a total value of 34.2 billion Egyptian pounds ($2.1 billion), EFG Hermes said in its statement.

Fawry made core profit of 152 million pounds in 2018, up 41.2% on the previous year, indicating the increasing viability of FinTech business model across Africa.

The last IPO by a private company on the Egyptian Exchange was financing solutions business Sarwa Capital last October.

Indeed, this IPO shows that Fintech in Africa has increasingly become more profitable as banks. The ability to pay dividends from profits is a major factor every business owner should have in mind before deciding to embark on IPO, and with Fawry which basically runs online with little or no physical presence doing so, this is a major announcement that digitally-focused businesses have finally come to stay.

This notwithstanding, so much credit has to go to the acquisition that happened as far back as 2015. In 2015, a consortium of international financial investors acquired a majority stake in Fawry, a deal that valued the company at EGP773 million (US$100 million) and saw the company adopting an expansion strategy outside of Egypt. The investors are the Egyptian-American Enterprise Fund (EAEF), pan-African private investment firm Helios Investment Partners, and the International Finance Corporation.

* $1 = 16.5600 Egyptian pounds

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.

Facebook: https://web.facebook.com/Afrikanheroes/

Here Is Why World’s Third Biggest Food Company Wants To Invest In South Africa

July 21, 2019

Pepsico, the world’s third-largest food and drinks company has decided to seal its largest deal ever, out of the United States. Unexpectedly, South Africa is its most preferred destination. Any moment from now, the final gavel would go and Pioneer Foods, the South African local brand which owns major brands like Sasko, Spekko, Liqui-Fruit, Ceres, and Bokomo would become part of the Pepsico’s global portfolio.

“As we look to accelerate our growth in key markets around the world … we are absolutely thrilled to join forces with … one of South Africa’s leading food and beverage companies,” said Pepsico CEO Ramon Laguarta. “Pioneer Foods represents a differentiated opportunity for PepsiCo and allows us to immediately scale our business in Africa.

Now Here Is The Deal And Why Pepsico Is Settling For South Africa

This is a major acquisition in which Pepsico would be paying a 56% premium to Pioneer’s share price before the deal. Doing so means that Pepsico has seen substantial value in what lies ahead.
The deal is of much greater significance than the R24 billion PepsiCo will spend on buying Pioneer, says Schalk Louw, a portfolio manager at PSG Wealth.

“It sends a message that one of the largest companies in the world has faith in South African Incorporated,” says Louw.

It is hugely promising that a massive American company would do one of its biggest deals outside of the US in South Africa — it must mean that it is taking a positive view on the long-term prospects of the country, says Henry Biddlecombe, an analyst with Anchor Capital.
Two years ago, there were rumours that an international company — very likely PepsiCo — was considering buying Pioneer. But it was apparently scared off by a succession of credit rating downgrades and the political turmoil of the Zuma era.
Now it’s back, and this time Pioneer is a much bigger bargain.
In 2017, Pioneer was an R45 billion company — it shrank to R15 billion this year amid a perfect storm that wreaked havoc on its profitability. Rocketing maize prices, tough competition in the bread market and embattled consumers have hurt Pioneer.
Surprisingly, it seems Pepsico is coming just at the right time.
Data showed that South Africans have been shopping more than expected. Retail sales rose by 2.2% in the year to May — while economists were only expecting 1.7%. April’s number has also been revised upwards. Consumer spending represents 60% of the SA economy, which means that the GDP should have expanded in the second quarter, and a recession may have been avoided.
Apart from Pepsi, the US giant owns Mountain Dew, Lay’s, Gatorade, Tropicana, 7 Up, Doritos, Quaker Foods and Fritos.

Here Is What This Major Investment Could Mean For South Africans

Hope At The End Of A Tunnel?

Expect this to be a major remarkable sign of turn-around for the struggling South African economy. The first phase of a chain of these events has already happened. A 25 basis-point interest rate cut — the first in more than a year was reached last week, and the rand rallied to around R13.82/$ (from R15.02 to the dollar barely a month ago).

Although it may still be premature to speculate, the Pepsico deal is definitely a sign that South African market may be nearing the bottom of a very difficult period, says Damon Buss, equity analyst at Electus.
Pepsico is paying a 56% premium to Pioneer’s share price before the deal, so it is clear they see substantial value in what lies ahead, Buss added.
Buss believes South African consumers will remain under pressure for the rest of this year, but 2020 should bring relief.

A Deal From Pepsico Is No Ordinary Deal; So Expect More Takeovers

Right now, a lot of companies in South Africa are currently significantly cheap, says Biddlecombe.
Recently, the Israeli firm Central Bottling announced its plans for a takeover of a South African dairy giant Clover. (The deal has hit a stumbling block after protests from a pro-Palestine group, but could still go ahead.) Tiger Brands — SA’s biggest branded food company — could also be a target, given that its share price has halved over the past year, Louw said. The company was hit by the listeriosis crisis, which killed more than 180 people in South Africa.

Louw expects more South African companies to become takeover targets, particularly in the food sector, where companies are cheap after a nightmare period of drought, a rocketing rand, sky-high fuel prices, and depressed household spending.

A Major Win For Consumers As They May Get More At Cheap Prices

“Pepsico is likely going to shake up the consumer market,” predicts Buss.
Under former CEO Phil Roux, Pioneer made some progress to move away from basic commodities (maize meal, bread) to higher-margin branded products. But when Roux left the company in 2017, the current management seemingly struggled to progress, says Buss.

Now PepsiCo will use its considerable global know-how to boost Pioneer Foods groceries brands to a new level, which will mean trouble for Tiger Brands, owner of competitor brands like Albany, Ace, and Tastic. Add to that an increasingly aggressive Libstar, which owns Lancewood, Denny and produces food under the Woolworths and Pick n Pay labels, and competition in consumer products is expected to heat up. This should mean lower prices and better products.

Also, PepsiCo will almost certainly use the Pioneer Foods distribution network to launch some of its products in South African supermarkets, says Louw.

This means more products for consumers to choose from, and also more price competition. PepsiCo may use its massive balance sheet to spend money on promotions establish its new products locally, thinks Buss.

South Africa’s Manufacturing Index May Increase The Largest Now

“Pioneer Foods forms an important part of our strategy to not only expand in South Africa, but further into sub-Saharan Africa as well,” said Pepsico CEO

While Pepsico noted in its statement on the planned deal that Pioneer will offer it a solid ground for further expansion into Sub-Saharan Africa by boosting its manufacturing capabilities, this is invariably going to lead to a well-drawn battle for the sub-Saharan African market and a major win for manufacturing. Now the fallout of this is that more of Pepsico products could be made locally would be made in South Africa.

“We think Pepsico is seeing the transaction primarily as an opportunity to expand into Africa, using South Africa as a launchpad,” says Buss.
Will Pepsico also ramp up exports of Pioneer’s South African brands — including Liquifruit and Ceres — to overseas markets? Buss doesn’t think so. “The global beverage market is notoriously competitive.”
However, given that Pepsico is shifting to healthier snacks, the global giant may be interested in Pioneer’s dried-fruit brand Safari, and some of its Bokomo rusk and biscuit brands, for overseas expansion.

Beyond South Africa, Pioneer exports to around 80 markets and has joint-venture operations in Namibia, Botswana, Kenya, and Nigeria.

In late-2014, the pair agreed to terminate their ten-year tie-up in Pioneer’s home market. Pioneer has been PepsiCo’s brand bottler and distributor in the country since 2005 but had to take an impairment charge on the business, prompting the mutual decision to quit.

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.

Facebook: https://web.facebook.com/Afrikanheroes/

From 2020, South African Schools Will Get A New Curriculum Featuring Coding and Robotics

Give it to South Africa. Unlike Rwanda that recently introduced the first public coding academy which only a few students may ever get a chance to attend, South Africa is going the extra mile to making it compulsory for coding and robotics to be taught in all primary and high schools across the country. This will, of course, take off in 2020, when a new curriculum comes into effect. This appears to be a major first in Africa.

Here Are Things You Need To Know

South Africa’s Department of Basic Education is currently updating its curriculum to ensure that the children coming from the South African education systems are equipped with the skills that will ensure they are ready to either become tech entrepreneurs or enter the workforce from day 1 of graduating from high school. This is according to Tourism minister Mmamoloko Kubayi-Ngubane who was presenting at the High-Level Political Forum on Sustainable Development at the United Nations recently.

“(The) South African government has developed Coding and Robotics curricula Grade R-3 and will complete Grade 4 to 9 before the end of 2019,” she said.

“This curricula will provide learners with understanding and will develop their skills and competencies to prepare them for the 4th Industrial Revolution. The curricula will ensure that our schooling system produces learners with the foundation for future work and equip them with skills for the changing world.”

Here Is The What Is Intended by The South African Government

The coding curriculum is aimed at developing learners’ ability to:

Solve problems, think critically and work collaboratively and creatively;
Function in a digital and information-driven world;
Apply digital and ICT skills;
Transfer these skills to solve everyday problems.

“Using University of South Africa’s (UNISA’s) 24 ICT Laboratories located throughout the country, 72,000 teachers will be trained to teach coding to primary school learners,” Kubayi-Ngubane said.

“We will do this in partnership with civil society, academic institutions and businesses such as Africa Teen Geeks and international players like MIT.”

To make this happen, South Africa’s Department of Education has already developed a framework for ‘teaching and learning of coding’.

“Coding requires a dedicated platform and the Department with the assistance of Google and other Big Businesses through Africa Teen Geeks are developing a coding platform that will utilise Artificial Intelligence and Machine Learning to customise learning and teaching.

“This Coding platform will be available in all 11 official languages ensuring that rural and township children will be introduced to coding in their own mother tongue in line with this government mission to provide an inclusive education accessible to all,” she said.

Kubayi-Ngubane said that the Department will pilot the coding curriculum in 2020.

“Throughout this year we are preparing the system to ensure that the schools are ready for full implementation post 2020. Each township and rural school in the country will be appropriately resourced to ensure creation of an enabling environment,” she said.

South Africa Is Setting A Big Example For Other African Countries

Take it or leave, the era of technological disruption has come to stay. Forward-thinking countries are shooting their shots early. For example, computer programming will become a mandatory subject in Japan’s elementary schools from April 2020, as the country seeks to train a new generation in highly sought information technology skills.

The basics of coding will be taught starting in the fifth grade. New textbooks approved by the education ministry on March 26 task students with digitally drawing polygons and making LED lights blink using simple commands, for example.

South Korea began working the subject more heavily into elementary and middle school curricula in a 2007 review of its educational system.

In 2014, the U.K. introduced programming into mandatory education for students aged 5 to 16

With the growing influence of technology, expect it to take priority over basic analytical subjects such as maths in no due time.

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.

Facebook: https://web.facebook.com/Afrikanheroes/

Iddris Sandu: The High Tech Genius Behind Uber, Instagram and Snapchat Algorithms

When Iddris Sandu was in high school, he developed mobile software that would later gain the attention of former U.S. president Barack Obama and land him at the White House, where he received the honorary presidential scholar award. He was only 16 years old. Now 21, the Los Angeles-based young man is the unconventional tech guru who has accomplished many incredible feats, including being responsible for algorithms that have made Uber, Instagram, and Snapchat what they are today.

The software engineer considers himself a “cultural architect” and said he aims to “level the playing field” between Silicon Valley and young communities of colour. Born and raised in Harbor City, California with parents from Ghana, Sandu would never forget a harrowing experience he had when he was eight – his father had wanted to take him on a trip to Ghana.

“But on the fourth day of the trip, he abandoned me in this village, took my passport and came back to the States,” Sandu told Oxford University’s Music and Style Magzine, adding that he was abandoned for almost nine months before getting into contact with an NGO which helped him travel back home.

He got back to the U.S. when the first-ever iPhone was unveiled, and this started his journey into the tech world. “I just got super inspired. I thought – this device is going to change the world.

The reason why the iPhone was so important was that it was the first time when regular consumers could develop for other regular consumers. Before, you really had to work at a tech company for multiple years to be able to offer any sort of input or to create an app. But Apple made it so mainstream. I knew it was the future,” he said.

Just 10 years old then, Sandu started learning to programme on his own for the next two years at a public library and this was where he got spotted by a designer from Google, who offered him an internship opportunity at the company’s headquarters. At age 13, he got his first experience with programming and worked on many projects such as the initial Google blogger, Google Plus, among others.

Yet, Sandu was determined to affect change; hence, at the age of 15, he designed an app for his high school that gave students turn by turn directions to navigate their classrooms. Being the only school in California that had an app made by a student, Sandu received wide acclaim that would later afford him a meeting with former President Obama.

During that same period, Sandu wrote an algorithm that he would go on to sell to Instagram and by the age of 18, he was already consulting for Snapchat before landing at Uber, where he created a software (Autonomous Collision Detection Interface) for its self-driving cars. With the passion to bridge the gap between the informed and uninformed, and to inculcate into young people like him the need for invention and creativity, he left major tech companies to bring that change.

“Information is one of the highest forms of class. And that is what keeps people divided. You should be able to think on a higher level, instead of being strictly consumers. And people of colour, in particular, are more likely to be consumers than creators. It’s really hard to get out of poverty or to change the structure of economic power if you’re always going to be a consumer rather than creating. Shifting that narrative is what I’ve been trying to do. And thus far, it’s worked, it’s successful.”

From encouraging the study of STEM subjects in schools and at higher levels, Sandu, in 2017, met rapper Nipsey Hussle at local Starbucks, and in three weeks, they had transformed an abandoned storefront in Los Angeles into the Marathon Clothing Store. The smart store offers exclusive music and other content to customers who have downloaded an app said The New York Times.

The store leveraged Iddris’ tech and design background and Nipsey’s cultural influences, sparking the interests of many journalists as well as hip hop and cultural icons like Russell Westbrook, Vegas Jones of Roc Nation, among others.

In an interview with the CNBC, Sandu said the store has helped him bridge the gap between culture and technology, and would love others to do same.“We are living in the digital revolution,” he said. Although “we are all constantly exposing ourselves to content in real-time.”

The tech wizard has since partnered with Kanye West and Jaden Smith on some future businesses, clothing lines and disaster relief projects that are set to launch in 2019, according to CNBC. Having created his own music, putting together the sonics and instrumentals in just 3 days to form a full album, the creative technologist is working on a book about recent initiators, including Kanye West; Robi Reed, a casting director; and Edward Enninful, the editor of British Vogue.

With the drive to use all his networks to empower young people in America to make a positive impact in their communities, the unconventional tech genius is already on his way to become a leader for the next generation of influencers and entrepreneurs.

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.

Facebook: https://web.facebook.com/Afrikanheroes/

Venture Capital for Africa (VC4A) and African Business Angel Network (ABAN) announce the 6th edition of its Africa Early Stage Investor Summit (#AESIS2019)

July 20, 2019

VC4A and ABAN are pleased to announce the 6th edition of the Africa Early Stage Investor Summit (#AESIS2019). The Summit will take place from 13-15 November at Workshop17 at the V&A Waterfront in Cape Town, South Africa. The conference brings together leading investors from Africa and beyond to network, exchange insights, create partnerships and make deals. This event is designed ‘for investors, by investors’.

What’s in store at #AESIS2019

The Summit’s speakers and guests hail from the leading angel networks, venture capital (VC) funds, impact investors, accelerators, corporate venture divisions, industry associations, and the public sector.

The number of Africa-focused angel investor networks and investment funds are rapidly growing and maturing, bringing both critical challenges and greater opportunities for venture capital funding on the continent. Summit delegates will explore developments in Africa’s early-stage investment space and will set the agenda for the coming years.

Day 1 on 13 November is ‘Academy Day’, which includes a series of interactive masterclasses and workshops, ending with a welcome cocktail reception. Day 2 on 14 November is the main Summit Day and will include inspiring keynote presentations by industry leaders and roundtable discussions, and it will end with an Investor Dinner.

Day 3 on 15 November is the optional Innovation Tour featuring insightful visits to key start-up hubs, accelerator programs and scaled up start-ups in the Cape Peninsula area. The detailed program is being finalized.

Announcing Naspers Foundry’s 2019 partnership

Naspers Foundry will be sponsoring the Summit’s main cocktail reception on 14 November and will be contributing to the Summit’s program development. Naspers Foundry is an R1.4 billion start-up funding initiative aimed at boosting the South African technology sector. As well as providing much-needed funding, Naspers Foundry helps talented and ambitious technology entrepreneurs develop and grow businesses that improve people’s daily lives.

“At Naspers, we believe in backing local entrepreneurs in growth markets and helping them by leveraging our global scale and experience. The Africa Early Stage Investor Summit provides a unique opportunity for Naspers to engage with like-minded investors and ecosystem partners from across the continent as we build out Naspers Foundry, and our broader investment ambitions”, said Phuthi Mahanyele-Dabengwa, CEO South Africa, Naspers.

Building on the success of 2018

The 2018 edition brought together over 300 investors from prominent African angel networks and VC funds to identify and address the critical gaps in the early-stage investment space going into 2019.

At the 2018 Summit, a number of successful partnerships were created, including a new partnership between South Africa’s Technology Innovation Agency (TIA), a public entity and the South African angel investor networks, Dazzle Angels and Jozi Angels. ABAN also signed an MoU with the African Union to deepen their collaboration to support entrepreneurship across the continent.

Additionally, L’Afrique Excelle, the Francophone edition of the World Bank Group’s XL Africa post-accelerator, formally launched at the 2018 Summit. The programme brought an unprecedented spotlight and momentum to French-speaking African growth stage start-ups. Over 30 VC funds including the IFC, ODV, Proparco, Outlierz Ventures and Compass VC formally signed up as investment partners for the program, with most of these partnerships formed over the two days of the Summit.

VC4A Venture Showcase – Series A

In 2017 and 2018, the Summit also featured a venture showcase of leading African digitally-enabled scale-ups from across the continent, resulting in a number of series A deals totaling over $15 million.

In the 6th edition, ten growth-stage companies that have been selected and vetted by Africa’s leading VCs will be introduced in the showcase. These companies represent a new class of investment opportunities across the continent.

The selected ventures have strong revenues, are well-positioned for regional and international expansion, and demonstrate important innovations that are disrupting industries like agriculture, healthcare, housing, transportation, and finance.

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.

Facebook: https://web.facebook.com/Afrikanheroes/

DHL partners with Teach For Uganda to create greater employability among youth

DHL Express, DHL Global Forwarding and DHL Supply Chain, part of the Deutsche Post DHL Group (DPDHL Group), launched a partnership today with Teach For Uganda, a network partner of Teach For All, to eradicate education inequity, raise a nation of true leaders and promote educational opportunities and employability for young people in Uganda.

This marks DPDHL Group’s 18th partnership with Teach For All under the new strategic framework(1), a focus to nurture employability and life skills of young people from difficult socio-economic backgrounds around the world, and its first partnership in Africa.

James Kassaga Arinaitwe, Founder and CEO of Teach For Uganda, said, “We believe in the potential of all children to thrive and become better leaders in their various communities. The partnership with DHL Uganda will accelerate our momentum and help us improve the lives of the children through excellent and practical education and develop our fellows as effective teachers and leaders in their communities and nation.”

Along with providing financial support, this partnership will also see employees from DHL Express, DHL Global Forwarding, and DHL Supply Chain volunteer to support over 36 Teach For Uganda Fellows who will, in turn, make a positive impact in the lives of at least 15,000 students across Uganda.

“According to Uganda Census data, over half of Uganda’s population comprises youth under the age of 29 and it is estimated that 86% of those are unemployed, underemployed or at the level of becoming employable. (2) While we understand there is much to be done in order to close the gap, we hope that the engagement our volunteers will have with Ugandan youth will help improve these numbers,” said Fatma Abubakar, Country Manager, DHL Express Uganda.

Paul Erongot, Country Manager, DHL Global Forwarding Uganda added, “Globally DHL is committed to improving the communities in which we operate. Having been in Uganda for over 30 years, we want to be able to create a positive impact within the local community. We hope our volunteers’ interactions with these youth will help provide them with an understanding of

what the demands of the real working world are, and the skills they need to tackle these challenges head-on.”

Zachary Mukwaya, General Manager, Country Operations Uganda, DHL Supply Chain continued, “We are looking at giving the youth exposure and access to business leaders as well as skills-based training. Over time as the interactions grow between DHL volunteers and the Teach for Uganda students, we hope to nurture a cohort of youth who are more confident, focused and own the skills needed to move forward in their careers.”

Teach For Uganda recruits exceptional Ugandan graduates from diverse fields of study, who are trained to become teachers, known as Teach for Uganda Fellows, then placed in underserved schools and communities around the country as Teach For Uganda participants. These teacher-leaders would commit two years as teachers and mentors to their students.

In addition to giving their time to Teach for Uganda, DHL volunteers will continue to support SOS Children’s Villages Uganda with whom it has had a partnership since 2013.

Deutsche Post DHL Group’s corporate responsibility program “Living Responsibility” is comprised of three programs focused on environmental protection (GoGreen), disaster management (GoHelp) and education (GoTeach). Under the GoTeach program, Deutsche Post DHL Group provides support to Teach For All as well as 18 other network partners in the Asia Pacific, Europe, Latin America, and the Middle East.

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.

Facebook: https://web.facebook.com/Afrikanheroes/

Brexit upheaval brings opportunity for African educators

The influential magazine Foreign Policy published an article at the end of 2018 entitled The Brexit Fueled Death of the British University. A grim outlook for the British education sector at the start of the year has only got worse as the nation prepares for a “No Deal Brexit” and a long period of uncertainty around UK trade and immigration policies.

A joint letter sent by the heads of 150 UK universities to British Members of Parliament called a No Deal Brexit one of the “biggest threats ever” to British universities. The letter stated “vital research links will be compromised, from new cancer treatments to technologies combating climate change. The valuable exchange of students, staff, and knowledge would be seriously damaged.”

British universities are now warning that international students, worth £26bn to the UK economy, will opt for countries such as the US, Canada, and Australia instead. Already Australia has moved ahead of the UK as the second biggest destination for overseas students.

However, in a time of crisis for UK universities, opportunities could open up for African higher education institutions. While political developments like Brexit are putting up increased barriers to free global movement, the demand for international education and experience has never been higher.

A British Education in Africa

Since 2002 Rushmore Business School in Mauritius has offered British education in association with British universities from its base in Mauritius. The idea of a winning a British degree without the high cost of relocating and living in the UK proved popular with Mauritian students. Rushmore now offers over 60 programs in collaboration with UK institutions, some up to Ph.D. level.

In an interview, Dr. Essoo announced plans to open a new international Rushmore campus in East Africa and Europe.

Both moves would represent a significant reversal of the current trend in Mauritian education of attempting to build the country as an education hub and attract students from Africa and India to study on the island.

Future of Pan-African Education

A Mauritian higher education institution moving into East Africa could be a significant moment in the development of Pan-African internationalist education.

Dr. Essoo outlined Rushmore’s development strategy by stating “We were the first institution to really look at this idea of the education hub, of developing Mauritius as a knowledge hub. The previous government started the education hub program and this government has continued.

However, having looked at it we realized that we are maybe putting the cart before the horse. My personal opinion is that we have tried this education hub approach and it hasn’t worked very well. We attracted maybe 10 to 15% of our students from Africa and India.

I think our next step needs to be going physically to those markets and expanding there. We are working on that now, we call this the third stage of our development. The first stage was set up initially, the second stage was building our campus here and consolidating what we had, and now the third stage is to go into other markets and take our model there.

The plan is to have campuses in Mauritius, Eastern Africa, and Europe offering the same courses and offer students mobility between the three campuses. Students from Europe could spend some time in Africa and some time in Mauritius, and see three different cultures. We would then be a truly international school or University and students would get a truly international education.

In addition to Africa, a lot of Europeans, particularly from eastern Europe, study in the UK either for their full degree or for one term or one year through exchange programs such as Erasmus.

We believe that with Brexit there is going to be an impact on education and on those students. We believe that we can go into those European markets and offer British education.”

The developments at Rushmore highlight the rapid changes the international education market is going through.

Demand for international education has never been higher. However, the traditional education markets in the global north are fostering political environments increasingly hostile to internationalization.

International higher education is now a $1.9 trillion global market and enrollments in higher education institutions are projected to grow by 200% by 2040. Total enrolment across the African continent will roughly triple from 7.4 million students to nearly 22 million by 2040.

Following the signing of AfCFTA, the continent must develop leaders with both a Pan-African and internationalist mindset. The expansion of institutions such as Rushmore Business School will be a significant catalyst in created an integrated African higher education sector able to attract partnerships with the leading British and international academics and teachers.

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.

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Startup VertoFX Raises $2M For African and Emerging Market Currency Trading Platform

More startups that are either Africa-based or Africa-focused are really having a good time raising funds to scale their businesses. Indeed, this funding goes to show that even startups with very remote niches can raise funds. VertoFX, the startup that focuses on currency trading and payment for African and emerging markets has just raised a $2.1 million seed round, led by Accelerated Digital Ventures.

Here Are The Funding Details And What This Means For Similar Startups With Remote Niches

The $2.1 million seed round of funding was led by Accelerated Digital Ventures.
The startup is simply a bureau de change for African and emerging market businesses.
The startup will use the round for platform development, expanding the currencies and gaining licenses in new countries. It will also use the round for hiring, primarily in compliance and regulator type roles. VertoFX already has a developer team in India and is looking at local developer talent for its Africa offices.
Although London-based company, with a subsidiary in Lagos, Nigeria, the startup’s platform allows businesses and banks to exchange and make payments in exotic foreign currencies that don’t often convert or trade conveniently across businesses or banks.
For example, South Africa’s Rand is Africa’s most convertible and traded currency — with lower spreads and transaction costs — while currencies of countries such as Ethiopia or Egypt may be difficult or expensive to trade or transact B2B payments.
All around the world, there are around 40 currencies that are considered exotic or illiquid, most of them in frontier markets in Asia, Africa, and the Middle-East, says Oyetayo, VertoFX founder.

“That’s the reason we are utilizing technology to create a marketplace model and price discovery to create liquidity for these currencies,” VertoFX founder Ola Oyetayo said in an interview.

And there’s a revenue opportunity to creating a convenient online marketplace for trading and payments in these currencies.

“Our research says there’s about $400 billion being done by small and medium-scale businesses in Africa alone in transactional volume on an annual basis. If we take 1% of that as a commission or transaction fee, that’s a $4 billion addressable market, just in the continent,” said Oyetayo.

A Look At VertoFX

VertoFX was founded in 2017 by Oyetayo and Anthony Oduwole — both ex-global bankers born in Nigeria. The company was part of Y Combinator’s 2019 winter cohort and processed around $7 million in transaction volume last month, according to Oyetayo.

VertoFX is registered as a payment services provider with the U.K.’s Financial Conduct Authority. Current clients include several undisclosed banks and San Francisco-based payment venture Flutterwave.

VertoFX doesn’t release revenue figures but confirmed it earns a commission, or spread, on each transaction processed on its platform. There are currently 19 currencies on the platform and the ability to settle in 120 countries, including China and the U.S.

VertoFX is also moving into offering market research — toward potential subscription services — on the currencies it trades, according to Oyetayo.

On the possibility of becoming acquired by a big bank, VertoFX isn’t so interested, according to Oyetayo.

“We both come from big banks and if we’d wanted to go down that route we’d have developed this more like a software as a service platform,” he said.

“We’re playing the long game here, and I don’t think the acquisition is the end game,” he said.

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.

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New study uncovers China ’s massive hidden lending to poor countries

New report shows the extent of China’s hidden power as the developing world’s creditor.

Over 50 developing countries’ Chinese debt accounts for on average 15 percent of their individual GDP.
New report shows that the majority of the world’s developing country’s debt to China is considered “hidden.”
China’s loans for poor countries are primarily for crucial infrastructure.

China’s overseas lending, which was virtually zero before the turn of the century — well, about $500 billion in 2000 — stands today, ostensibly, at around $5 trillion. Indeed, they are now the world’s largest creditor, being twice as large as both the World Bank and the International Monetary Fund, combined.

As much of what China does is under a veiled curtain of secrecy, it’s been difficult to track how all the money is flowing. A new comprehensive study though, by Sebastian Horn and Christoph Trebesch of the Kiel Institute for the World Economy, and Carmen Reinhart of Harvard University, has provided some new insights about China’s official credit lending empire. What did the researchers discover?

More than half of China’s lending to developing countries is what they term “hidden” money — loans that haven’t been reported to any of the international funds, such as the World Bank.

Indeed, economist and author of the report, Tresbesch, recently told Germany’s Spiegel in an interview following the release of the study’s findings, that compiling all of the information was like “a kind of economic archeology.” Their information came from numerous financial world databases, along with some documents provided courtesy of the CIA.

It’s no secret that China would like to keep this type of information occluded from the international scene. Opponents of China’s secretive lending practices fear that Beijing is engaging in predatory debt diplomacy and using their worldwide Belt and Road Initiative to create a new kind of economic colonialism over Africa and other parts of the developing world.

China’s creditor strategy for economic growth

China is in a state of further economic evolution. Long gone are the days of being the world’s impoverished manufacturer. With a thriving consumer market boosted at home, China is now flexing their influence over vast swathes of the world. One of their strategies is by becoming the world’s most involved lender to poor countries.

This can be problematic for a number of reasons. Countries that take this deal, end up grossly indebting themselves to China’s policies in a number of ways, both monetarily and culturally. An example on the extreme end of the spectrum is Djibouti, whose Chinese debt is equivalent to 70 percent of the country’s GDP. On average, the top 50 of China’s borrowers owe somewhere near 15 percent of their GDPs, which, still, on a global scale is quite a lot.

The authors also found that China has never officially disclosed any loans to Iran, Venezuela, or Zimbabwe, which on other records it’s been shown that China is a major creditor. The report speculates that one of the ways to avoid these international cross-border crediting claims is by the Chinese government disbursing loans straight to Chinese contractors rather than the developing governments themselves.

A great deal of these loans isn’t subject to credit rating agencies, because most of China’s foreign loans flow straight from their government. China’s lending practices take on another interesting dynamic, as the country is lending much more than just money: it is also helping build crucial infrastructure in these developing nations. In doing so, China exports a healthy dose of its culture and influence.

Growing influence in Africa

China’s investment in Africa takes the form of loans in exchange for infrastructure development. Oftentimes, Chinese companies and citizens reap the benefits and profits of these large projects. While many Africans welcome the much-needed investment into their countries, it’s not clear how much the continent is benefiting from this Chinese influence.

One major issue a lot of countries are facing is that almost the entirety of their country’s debt load comes from China. For example, of Kenya’s $50 billion in debt, more than 72 percent of it is from China. In Senegal, highways, industrial parks and other crucial developmental projects for a functioning country are all funded by large, risky Chinese loans. Again, much of this value goes back to China. They’re not doing this for humanitarian reasons. The Chinese expect capital and cultural return.

Tim Wegenast, who wrote a report about Chinese mining in Africa states:

“It’s more or less safe to say that Chinese companies employ less local labor than other companies because they bring over many Chinese workers, and when they develop local infrastructure, they provide countries with loans which are being used to pay for it, which is then constructed by Chinese companies and Chinese labor.”

A future of Chinese credit

According to The Economist, China’s lending prowess is more of a mixed bag. While many new loans from China were offloaded with debt relief by Western creditors after defaulting, China has in the past put forth some debt restructuring plans on 140 of their foreign loans. Although at other times, they’ve taken their collateral with ruthless abandon, for example when they seized the Hambantota Port in Sri Lanka.

Many Chinese loans have higher extended interest rates and short maturities, with heavy collateral that includes commodities, or even important strategic foreign infrastructure.

The authors of the report noted that China has started talking about being more transparent and sustainable on their loans in the future. But no clear evidence of this taking place has yet to materialize.

Mike Colagrossi is a Columnist at Big Think Magazine

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.