East Africa - Afrikan Heroes

East Africa is Global Leader of Mobile Money – Report

February 24, 2021

The East African region has cemented its position in the digital economy as the global leader with the highest penetration rate of mobile money in the world. The region has 1,106 registered mobile money accounts for every 1,000 adults, compared to 600 for the whole of Africa, 533 for Asia and 245 for Latin America and the Caribbean. In East Africa, penetration is higher with most adult subscribers owning one or more mobile money accounts.

According to data from a 2021 joint report titled: Africa’s Development Dynamics’ authored by the African Union (AU) in collaboration with the Organisation for Economic Cooperation and Development which indicates that East African member states such as Uganda, Kenya, Rwanda and Tanzania lead the world in mobile money transactions, mostly because policy makers and regulators took an earlier risk to invest in innovation, which has made the financial sector more inclusive. Other countries in the region, including Comoros, Ethiopia, Mauritius, Seychelles, Somalia and South Sudan, have also launched or are in the process of launching mobile money services.

Mobile money penetration has also been a key enabler and driver of digital innovation and adoption, leading to a boost in productivity in key sectors as well as creating jobs in the digital economy with financial technology (Fintech) startups in the region operating in a wide range of domains such as education, healthcare, consumer services and agriculture.

Fintechs have developed applications that help address rural urban supply chains and market linkages through electronic retail payment systems thus reducing fraud and enabling e-commerce growth. In Kenya alone, the spread of mobile money services has helped raise at least 194,000 households out of extreme poverty and has also enabled 185,000 women to switch from subsistence agriculture to small businesses or retail as their main occupations.

The report also notes that whereas East African governments can facilitate and regulate cross border payments, especially for mobile money accounts, currently, no interoperable mobile payment system covers the region, and the cost of creating one remains high.

In Uganda, according to data from Bank of Uganda, the value of mobile money transactions grew to an all-time high in December, capping the year at 28.2 per cent in 2020 compared to 2019.The number of mobile money transactions, the report noted, grew by 25 per cent during the same period. The Central Bank noted mobile money transactions grew to 3.5 billion in 2020 compared to 2.8 billion in 2019. Value of transactions rose to Sh93.7 trillion in 2020 compared to Shs73 trillion in 2019.

In Uganda, 2020 saw transactions grow to double digits month-on-month having recorded Shs10.3 trillion in value of transactions in December. Deposits and withdrawals equally grew to Shs2.5 trillion month-on-month from an average of Shs1.5 trillion in 2019. The growth could be partly explained by the increase in subscriber numbers, which during December 2020, grew from 23.5 million to 30.5 million subscribers.

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 role of technology in unlocking trade value in East Africa

January 29, 2021

By Pedro Guerreiro

Is it too soon to be optimistic about an economic revival in East Africa following the devastating impact of COVID-19 on the global economy?

The latest data – and the region’s continued focus on transforming its key industries, sectors and infrastructure through technology – is giving me hope that the economic outlook is brightening.

Trade in East Africa has already picked up: according to the Brookings Institute, after an initial drop in trade in Kenya during the early months of the pandemic, by July domestic exports were already 12.7% higher compared to the year before.

Impact on trade felt during early days of pandemic

That is not to say the pandemic did not have a significant impact on regional trade. For example, Kenya’s highly lucrative cut flower industry was brought to its knees earlier this year. When Europe locked down, it forced the closure of hotels and severely restricted public gatherings including weddings and funerals.

Demand for Kenya’s cut flower exports plummeted from a high of 17,600 tons in February 2020 to a low of 8,000 tons in April. Kenya is the world’s third-largest exporter of cut flowers. The industry employs 150 000 people and contributes 1% of the country’s GDP.

Flower-only export farms changed their business models by switching to growing vegetables – another of the country’s major horticultural exports – and could generate some revenue by exporting to the country’s European trade partners. Local food security was also improved, as produce could be used to feed vulnerable communities struggling with the impact of the pandemic.

Tea exports, Kenya’s second-largest earner of foreign exchange after horticulture, also declined due to the pandemic. Recent data suggests a drop in tea exports from Kenya in the period January to June 2020 compared to the same period in 2019.

However, that sector is arguably better equipped to adapt to the immediate challenges. The Kenya Tea Development Agency, an industry body that supports more than 600 000 smallholder tea farmers, has been on a sustained digital transformation journey to achieve greater automation in its factories.

The cost-savings and improved revenue resulting from greater efficiencies in the KTDA’s operations is helping it secure local jobs and support the local economy despite the impact of the pandemic. This type of technology-enabled resilience is more important now than ever, when an uncertain global outlook means organisations need the agility to adapt to changes in their operating environment.

New agreements, investments unlock trade value

Broader initiatives are likely to further support growth in trade in the region. The African Continental Free Trade Area, the world’s largest free trade area by number of countries involved, will eventually connect 1.3 billion people commanding $3.4-trillion in GDP.

The World Bank estimates that trade measures that cut red tape, simplify customs procedures and make it easier for local businesses to integrate into global supply chains could drive $292-billion of the expected $450-billion in income gains from the agreement.

For countries and ports of trade that have updated their infrastructure through investments into new technology, these income gains will be easier to realise.

The Mombasa Port, East Africa’s largest and oldest sea port, is still the main conduit for global sea trade in the region, but a new port in Lamu will further expand the region’s trade capability. The new port will form part of a transport corridor that will connect Kenya to South Sudan and Ethiopia and greatly assist with boosting regional trade.

Ambitious investments into new rail infrastructure also hold immense promise. The East African Railway Master Plan aims to rejuvenate the railways serving Kenya, Tanzania and Uganda, and will add railways serving the rapidly-developing economies in Rwanda and Burundi. The application of technology in each of these major infrastructure projects will be crucial to their success in the decades ahead.

Key technology priorities for regional trade

What should regional trade authorities and organisations prioritise in terms of technology investments to ensure positive growth in trade in East Africa? Efficiency should be a top priority. Increasing the volume of containers passing through regional ports could hold huge financial benefits. PwC estimates that sub-Saharan Africa could save $2.2-billion in costs per year if container throughput is doubled at major ports. In addition, improving port performance by 25% can reduce the price of imported goods in the region by $3.2-billion per year while adding $2.6-billion to the value of exports.

Automation is also key. Africa’s long-term reliance on slow, manual processes has stunted the growth of trade at its ports. The turnaround time for vessels at African ports – the time it takes to port, offload cargo, reload and depart – averages five days. In Asia, where port infrastructure is more modern and automated, that time drops to as little as seven hours. The productivity gains from the use of automation means Asian ports are able to process more goods quicker, with direct revenue increases as a result.

In addition, deploying new technologies could help solve efficiency and productivity issues at key ports of trade. After investing in an Internet of Things platform that connected its entire fleet to a central system, the Port of Hamburg in Germany now has full, real-time visibility over truck positions, congestion at cargo terminals, raised bridges and accidents. This enables port authorities to make accurate decisions to ensure a smooth flow of goods at all times, boosting the efficiency and productivity of the port.

Africa’s lack of legacy infrastructure could be an advantage as it builds out its ports of trade. With less historic technology to adapt or work around than the more developed regions, African ports have a blank slate to implement the latest technology and realise the immense gains promised by the likes of IoT, AI and machine learning.

Pedro Guerreiro, Managing Director for Central Africa at SAP

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

African Startup Founders Secure $100,000 From Antler’s Mentorship Program

February 15, 2020

Selam Kedebe, Director of Antler, East Africa

The first African cohort of innovators program started by Antler, an international startup generator firm held their demo in Nairobi, the first in Africa with ambitious plans to implement their business ideas in Kenya and expand across Africa.

Startups founders who participated in a 6-month program in Kenya pitched their fintech ideas that use digital technologies to improve consumers experience, giving users convenience among other financial digital solutions showcased their projects in from of the audience of investors and fellow entrepreneurs in Nairobi at the Address.

Antler, one of the biggest startup incubators and accelerators expanded in Africa last year establishing its first entrepreneurship program in Nairobi, Kenya.

According to Antler, during the inaugural program, the firm received more than 1200 applications, selected 37 brilliant founders from 13 countries and invested 100,000USD in 4 startups that were built at the program in the past 6 months. The four startups include AIfluence Inc., Digiduka, ChapChapGo and AnyiHealth. All of these brilliant founders met at Antler earlier this year to build their own company.

“I believe each of the founders has inspiring stories to tell, given they all met during the program, came up with the business idea, validated and turned it into a business that raised 100,000USD in only 11 weeks ,” said Selam Kedebe, Director of Antler, East Africa

Antler invests US$100,000 for a 20 percent equity stake in each company selected by its investment committee.

Some of the innovative ideas founders generated during the program seek to increase access to healthcare insurance in Nigeria and Kenya by offering digital loans, other founders are involved in online marketing using artificial intelligence other fintech solutions with hope to tap into the growing Africa’s digital economy.

Following its first program completion in Africa, Antler says that it is now, the world largest startup generator.

“The fact that Antler is enabling such high caliber founders to build these amazing companies in less than 6 months is also something we pride ourselves,” said Ms. Kedede adding that they hope others would follow suit in order to create a dent in the African and global startup ecosystem.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.
He could be contacted at udohrapulu@gmail.com

Kenyan Startup Ilara Health Raises $735k Seed Funding Round To Grow Business

August 8, 2019

2019 has proven a good year for health and ride-sharing startups in Africa. More funding is coming than ever before. Kenyan startup Ilara Health, which is bringing affordable diagnostics services to doctors, has just joined the wagon. The startup has raised a US$735,000 seed funding round to grow its offering in the East African country and ultimately beyond.

Here Is The Deal

The US$735,000 seed funding for the startup came from investment firms ShakaVC, Chandaria Capital, and Villgro Kenya, with the round also including angel investors such as Esther Dyson, Nijhad Jamal, Aadil Mamujee, Selma Ribica, and Shakir Merali. Several of the new investors will become strategic advisors to the business.

“Seventy per cent of patients need some form of medical test to inform their treatment, but many doctors across Africa have limited ability to perform diagnostics in their clinics. When a patient needs a test, doctors often refer them to a lab. Given the infrastructure challenges across the region — the time, the money it takes to get anywhere — patients frequently fail to attend and care breaks down,” said Emilian Popa, co-founder and chief executive officer (CEO) at Ilara Health.

This round of investment will be used primarily to grow Ilara Health ’s peri-urban medical clinic customers in Kenya, and ultimately beyond. It will also allow the company to build a flexible technology platform to manage and protect valuable patient health and clinic financial data.

A Glance At The Startup

Founded in 2018, Kenyan health startup Ilara Health sources tech-powered diagnostics equipment and makes it accessible to Africans who struggle to afford it, bundling the equipment and integrating the devices via a proprietary technology platform. Doctors pay a deposit to use the equipment and then pay off the remaining cost in installments determined by usage.

What Drew Investors In

Esther Dyson, angel investor and executive founder at Wellville, said she had invested in Ilara because she had watched CEO Popa explore the market to find the perfect, sustainable product-market fit.

“Moreover, the need is great, and the benefits of simple, cost-effective diagnostic tools will extend well beyond the patients and doctors, affecting first Kenya and ultimately the continent at large,” she 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.

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

East Africa International Arbitration returns to Nairobi

July 25, 2019

The annual East Africa International Arbitration Conference returns to Nairobi this summer on the 29th & 30th August 2019 at the Radisson Blu Hotel for its 7th edition. EAIAC provides an unrivaled platform for International Arbitration practitioners, arbitration users, state counsel, academia, and in-house corporate lawyers to learn, share best practice, network and deliberate on International Arbitration as an important tool for promoting FDI in Africa.

EAIACequally provides a forum to promote, profile and celebrate Africa’s International Arbitration & Arbitrators.

Themed “Government Contracting and Investment Disputes: Lessons for States and Investors” the conference will explore the full spectrum of government contracting from procurement and PPPs (public-private partnerships), tender disputes, dispute mitigation in government contracts, investment arbitration and arbitrating with governments in African centers.

Boosted by it’s long -term development blueprint, Vision 2030, and its mid-term development plan, the Big Four Agenda, Kenya is indeed a fitting venue for the conference. The country has experienced a surge in government contracting over the recent past and only last year, the Kenyan government successfully defended two high profile investment arbitrations: an ICC arbitration relating to the power sector; and an ICSID arbitration in the mining sector.

Notably, across Kenya’s borders, various African countries have also published blueprints to be mid-level economies by the first half of this century. The momentum for investment in Africa’s investment in renewable energy, infrastructure development, agriculture, healthcare, and education continues despite global uncertainty.

These interests in African economies is further encouraged by the establishment of the African Continental Free Trade Agreement (AfCFTA) which entered into force on the 30th May 2019 with 24 out of 55 Africa states have deposited their instruments of ratification. We see some Governments making attempts to become transparent and efficient in contracting.

All these developments set out a strong case for international arbitration and its development in the continent. It is for this reason that the East Africa International Arbitration platform exists, to promote the arbitration practice, support Africa centers build relationships and their profile, create a platform for shared experience, a place where arbitration practitioners and users can meet to network and acquire new skills.

The discussion topics will be delivered by leading Africa and international experts in discussion panels, Oxford-style debates and masterclasses tackling some of the pertinent issues in Africa’s arbitration space. The keynote address will be delivered by Hon. Justice David Maraga, Chief Justice, Republic of Kenya.

The speakers will attempt to respond to questions like; How can governments and investors better contract? Disputes are expensive, even for the winner –can they be mitigated? Can damages be better assessed and recovered? Do African international arbitration centers and practitioners have a place in investment arbitration and many more.

AFRICA ARBITRATION AWARDS 2019

In addition to this year’s program, the EAIAC will celebrate achievements and success in Africa Arbitration at the Inaugural Africa Arbitration Awards 2019.

Africa Arbitration Awards aim to celebrate, recognize and honor outstanding practitioners and leaders in the Africa arbitration ecosystem and will be celebrated at the Gala Dinner on Friday 30th August 2019 at the Radisson Blu, Nairobi.

Awards Categories:

African Arbitrator of the Year
Young African Arbitrator of the Year
Leading Case Counsel Team
Innovation in Arbitration
Leading Case Service Provider

Nominations Process

Nominations are open to all International Arbitration practitioners in Africa. Self-nomination is allowed.
Nominations will be subjected to a panel of judges for review.
3 shortlisted nominees will be announced for a round of voting by the Arbitration community.
The overall winners will be announced at the Awards Gala Dinner.

Nominations are open at www.AfricaArbitrationAwards.org We invite you to celebrate an amazing person in arbitration, including your contacts, colleagues, or team by nominating them in either of the categories above.

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/

This Report Lists Reasons The Manufacturing Industry In Kenya Is Backward

July 14, 2019

Startups, whether new or existing going into the manufacturing industry in Kenya have new lessons to learn before embarking on the journey. Besides the fact the manufacturing industry contributed only 8.4% to the GDP in 2017, the manufacturing industry contribution to Kenya’s GDP has never gone beyond 10%. Now, a new report is helping to show the reasons for that bad performance and what can be done to boost Kenya’s manufacturing capacity and enhance industrialization.

Conducted by SYSPRO, a global provider of industry-built Enterprise Resource Planning (ERP) software for manufacturers and distributors in collaboration with Strathmore University, the study on manufacturing in Kenya saw close to 100 companies drawn from 12 sectors of the production and manufacturing industry in Kenya interviewed.

The study explored the productivity and competitiveness of the manufacturing sector in Kenya, the role of new technologies in improving the sector and the state of adoption and use of these new technologies.

The study revealed among other things five factors that affect the manufacturing industry in the country and these include:

Spare Parts

The study found that most of the companies interviewed were still using outdated production units because of the high cost involved in buying newer machines. This is even made worse because there is the scarcity of locally manufactured spare parts. In most cases, manufacturers could not say which products or parts were of great quality and which were fake spare parts until they used them.

This usually leads them to incur higher costs should the spare parts turn out to be fake and there is a need for replacement. This incidence of counterfeits has seen many manufacturers go for the importation of parts instead of buying them locally. Most of the times, this leads to longer periods of non-performance for machines as they await the delivery of the spare parts from overseas.

High software and hardware costs

Kenyan manufacturers also suffered high software and hardware costs. This hindered them from adopting newer technologies that could help improve the efficiency and productivity of the manufacturers. Manufacturers not having access to these simply resort to using outdated technology which they can afford. The end result of this is higher production costs and the inability to compete with those who are able to acquire the latest technology. Many of the manufacturers interviewed proposed tax incentives from the government so that they can acquire these technologies.

Nevertheless, the SYSPRO report showed that manufacturing managers have been able to keep the costs of their solutions down by having their Enterprise resource planning (ERP)solution (a software which integrates all facets of an operation, including product planning, development, manufacturing processes, sales, and marketing)divided in modules unlike their competitors.

Doing so offers its clients choice and flexibility. At the simplest level, a company only needs just 1 or 2 modules of an ERP Solution to begin automating its business which SYSPRO provides. This has proved quite popular with SME manufacturers in Kenya.

Lack of skilled labour

The study found a jarring dearth a dearth of skilled labour in Kenya who can operate such machines needed in manufacturing processes. The study recommended that there should industry-wide support for an apprenticeship, graduate internships and technical courses in universities so that the Kenyan local manufacturing sector would become an attractive business experience.

The implication of the paucity of this skilled workers is that over 50% of the respondents now felt that Kenya’s manufacturing sector would have difficulty competing with counterparts in other developed countries that have advanced education and training systems.

Government Support

The study indicated that the Kenyan government is not doing enough to support the manufacturing sector. A majority of the manufacturers interviewed felt that the government need to do more to support the sector so as to make it competitive and attractive to potential investors. The manufacturers particularly pointed out that support in the areas of development of infrastructure, provision of exemptions, grants, and subsidies as well as purchasing guarantee from the government would have a lasting impact on the sector.

High energy costs

This simply means that the cost of access to electricity for the manufacturing industry in Kenya is just so high. In fact, the cost of electricity was reported as the main external factor that adversely affected business operations in the last 2–3 years. This is despite the government’s efforts to reduce electricity costs for the manufacturers.

Other factors which were noted as having an effect on the manufacturing sector were:

The high cost of capital financing
Political climate
Cheap imports and exchange rates.

Right Now, Manufacturing Companies In Kenya Are Focusing On This Area For Improvement

From the companies interviewed, it appears they are prioritizing product development, advertisement, and marketing, computer systems, hardware and software as potential investment areas to improve business operations in the next financial year.

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/

Kenyan Recruitment Startup Lynk Raises Funding For Expansion

Kenyan recruitment startup, Lynk is the newest to join the train of startup fund-raising in Africa. Though the amount raised is undisclosed, it is larger than Lynk’s combined total of previous funding, which was a US$1.3 million seed round and US$500,000 in grant money.

A Look At The Funding

This round of funding was led by Lateral Capital and featured local and international family offices and funds such as the Cornerstone Group.
Lynk co-founder Johannes Degn said the funding would be used to help the startup expand its operational footprint, grow its team and improve its B2B offering.

“It will almost exclusively be for salaries as we are hiring a more senior team. We are growing our commercial presence in Nairobi. Our ability to grow market size in Nairobi is the remaining proof point before expanding to second market. We have budgeted a good amount for marketing activities,” Degn said.

What The Startup Does

Lynk connects informal artisans with customers. It allows customers to book professional services from highly vetted artisans. Customers can simply book an assessment with the artisan and the artisans will be with them in as quickly as 4 hours. Quotes are provided at set rates, and assessment costs are deducted from the total job value. So whether it is a gentle full body Swedish massage for deep relaxation or the installation and replacement of sinks, baths, showers, and toilets, Lynk is up for it.

The Kenyan startup also says there is no way a wrong artisan would turn up.

‘‘We’ve been connecting customers to workers since 2015. Our customer base trusts and believes in the quality of our services and our digital platform always the entire process to be transparent — you don’t need to work about inexperienced workers, hassle about payments or rates, or worry about communication. We serve as the neutral intermediary and ensure all work is delivered and completed to industry standards. This means ensuring that the Pros we connect you with have a breadth of experience, are professional, trained, and certified in their craft. Once we find the right match, we will notify you of the details — name, and contacts of your Pro before the service,’’ it notes.

The startup was started in 2015.

So far, the Lynk platform claims it has facilitated more than 31,000 jobs and over 100 construction projects.

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/

How Trust Can Make Drones Better In Kenya And Around The World

July 12, 2019

The drone industry is sitting and waiting for regulations and guidance that make sense across the globe. Take Kenya for example. Currently, drone operations are illegal within Kenya for the average person and extremely limited otherwise, leaving both businesses and individuals in great need of practical and adequate drone regulations.

While drone use is allowed in many countries, even in these places where they are legal and regulations are in place, current drone laws are often woefully inadequate.

Businesses are waiting for adequate drone regulations in Kenya and around the world.

What many entrepreneurs are seeing is that when it comes to successful drone operations, it’s not the technology itself that matters most, it’s everything else.

But with current regulations, we’re stuck relying on regulations that for far too long have focused exclusively on the size of the drone!

Whether you’re investing your time and energy in developing a robust drone delivery operation to deliver blood and save lives, or you’re just looking to fly your off the shelf drone to capture data, the difference between success and failure is in how you approach the operation, not what type of drone you’re flying. Unfortunately, drone regulations in many countries fail to recognize this, costing entrepreneurs and the public greatly.

With the need for enhanced drone regulations so apparent, what is holding us back from implementing them?

A large part of this answer is lack of trust.

Trust and Mistrust in Drones

The biggest limiting factor for drones all over the world is a lack of trust. Government safety authorities don’t trust you to fly safely nor in a way that doesn’t compromise security. Business leaders don’t trust the role you’ll play in their work. All this mistrust expresses itself in regulation, where “unknowns” become “proposal declined.”

Take another look at Kenya, though the Kenyan Civil Aviation Authority (KCAA) proposed drone regulations last year these efforts were shut down by parliament. This left entrepreneurs eager to integrate drones into their businesses still waiting.

What is it that an entrepreneur can do to overcome these barriers? Well, that question is precisely what the drone industry is trying to answer to drive adoption and change minds. Building trust is an outcome of spreading knowledge and successful community engagement, and building it is a core challenge in the fourth industrial revolution.

Despite the disappointment that previous regulations weren’t accepted, there has been recent progress on drones in the East African country. Kenya’s latest drone regulations are now out for comment, and they look promising. New regulation proposals from the KCAA consider more than just drone size but focus on operations and technology to get more drones in the sky; to save lives and create businesses without preventing any type of operation outright.

These are Performance-Based Regulations (PBR) and are much more robust than many other drone regulations currently in use today. First put into practice in Rwanda, Switzerland and then the EU more broadly, robust PBR implementation has found that your approach to the operation, not simply the technology, can open the sky to you.

Building Trust Through Performance-Based Regulations

Drone entrepreneurs and authorities all over the world are beginning to realize that technology maturation is not the silver bullet to regulatory blockage. Rather than focus on specific technology requirements certified through strict processes, governments are beginning to adopt and advance performance-based regulations (PBR).

Embraced first in Rwanda, recently announced as the foundational approach by the European Aviation Safety Agency (EASA) for EU wide implementation, and the core of a recent draft of the Kenyan Civil Aviation regulations now out for comment, PBR is redefining the way the world accesses airspace. As a sign that PBR is affecting even the most complex airspace, United States Federal Aviation Administration (FAA) Acting Administrator Dan Elwell, recently declared at Uber Elevates Summit on the future of aviation, that “performance-based rulemaking is the future of the sky… that we evolve or we get left behind.”

This new approach to regulation turns the traditional aviation equation on its head; no longer is the certified technology the crucial element for approval, but rather it is one important component of the overall proposal to fly. How you approach a flight, the procedures you put in place, the training a pilot has, the environment for flight, and how you protect the privacy of the community involved are far greater variables that define overall success.

In other words, if all your thinking about is the drone, then you’re very likely to fail. Though PBR, as an operation centric framework, does recognize that if you create the right processes to protect safety and security you can find great success, it’s not a silver bullet. What’s often missing is the education, training, and business model that focuses on the operations, not the drone.

Drones provide a bird’s eye view with a low barrier of financial and technical entry. Business and government stakeholders must speak a similar language of access and ethics, where operational considerations balance technological ones.

Today, Kenya is set to reform its own regulatory approach to drone regulations in a way that is practical, yet visionary. The rules being considered will continue a harmonization effort across Africa that aligns with the performance-based approach that Rwanda pioneered, and now Europe and the US are beginning to implement.

At the World Economic Forum, we believe that countries with vision and agility can pursue and adopt new approaches to governance which will both protect its citizens from the darker outcomes of drone technology while enabling domestic market growth and the expertise necessary to lead.

Performance-based regulations, piloted in Rwanda and now scaling globally, supported by leaders from both established and emerging economies, promises to enable industries held back by overly restrictive procedures while mitigating risks to society more effectively.

POST WRITTEN BY

Harrison Wolf Lead, Drones and Tomorrow’s Airspace, World Economic Forum

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/

Graça Machel’s Invest2Impact Is Looking For Women Entrepreneurs In East Africa To Invest In

July 11, 2019

Women entrepreneurs in East Africa now get investment as high as $3 million in their businesses as Invest2Impact has just been launched. Invest2Impact is access to funding and women-led business development initiative sponsored by the development finance institutions (DFIs) of Canada, the UK, France, and the United States, in partnership with the MasterCard Foundation.

CDC Group‏ @CDCgroup

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We are so proud to have joined ours partners at the launch of the #Invest2Impact @invest2impact business competition in Nairobi today. Great to have @kattengtio there representing CDC as we invite #womenentrepreneurs in East Africa to apply http://invest2impact.africa

“There is no mountain that is too high for the African woman.” ~ H.E Graca Machel

“Success is to overcome your fears & insecurities and the courage to move forward. Celebrating the breaking of barriers and to prove it can be done.” — H.E Graça Machel, Founder & Patron @G_MachelTrust giving her key note address at the official launch of #invest2impact

The current project focus is East Africa, specifically:

Ethiopia
Kenya
Rwanda
Tanzania and;
Uganda.

A total of 100 women participants will be chosen from all competition entrants to participate in one of the following four tracks. Each track will aim to include (subject to sufficient applicants who meet the criteria) 5 women participants from each of the participating countries. The competition will be open only to majority women-owned businesses, and detailed entry criteria will be on the competition website from the launch date.

The Four Tracks Include:

2Xcelerate

SDG-aligned growth funding above $3 million

Business competition open to women-led business in the participating countries with preference given to those that support or are aligned to the UN Sustainable Development Goals. 25 Finalists will compete for cash prizes of $85,000 recognition at a gala winners’ event and participation in the invest2impact funding readiness program to maximize your chances of funding. This track is designed for revenue-positive businesses seeking sizeable investment usually greater than $3 million to scale

2Xcapital

Tailored SME growth funding access support

25 SMEs selected from the invest2impact applicants will benefit from a funding access program, including funding readiness assessments and customized assistance with building an investment case to access funding from funders other than the invest2impact sponsors. This track is designed for smaller businesses suitable for less than $3 million in funding.

2Xcrowd

Go global with a guided crowdfunding campaign

Another 25 social enterprise and innovation-focused businesses will receive customized tailored support and mentorship to implement an Africa/global crowdfunding strategy to fuel their growth using this platform-based approach. The program will include crowd-funding strategy development platform fees and ongoing funding campaign content and communication support to achieve an agreed funding target.

2XCatalyse

Network and be seen at major industry events.

Go to the heart of Africa’s energy, health, technology, agriculture and tourism sectors, catch up on the latest trends and build your network and a client base 25 women entrepreneurs will be selected, based on their own motivation to attend a major international expo, experience or event in their industry sector with sponsored travel, attendance fees and promotional material.

Key Dates

Entries open for all tracks: 11 July 2019

Entries Close: 9 September 2019

2Xcelerate finalizing announced: 10th October 2019

2Xcelerate Winner Awards: 13 November 2019

All other 2X Programme participants announced: 13 November 2019

Programme Country Contact

Ethiopia

Sewit Haile Selassie

251–911–1100766
sewithst@gmail.com

Rwanda

Elisse Milongo

250–788- 200–410

elisse.milenge@rw.fcm.travel

Uganda

Charity Mable Namala

256–722–911–719

namalamac@gmail.com

Kenya

Jaine Mwal

254–715–519–217

jainemwwal@gmail.com

Tanzania

Irene Kiwia

255–787–611–213
irene@frontline.co.tz

The application can be done on this portal Invest2Impact — Invest2Impact

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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3 Million Kenyans Living Abroad Sent More Money Home Than The Whole Of East Africa

Kenyans living abroad are sending more money back home than their counterparts living in Uganda, Tanzania, Rwanda, Burundi, South Sudan, and Ethiopia put together. World Bank data says Kenya’s Diaspora remittances in 2018 stood at Sh280 billion (about $2.7 billion), while a total of Sh242 billion was sent to the rest of Eastern Africa — comprising Uganda, Tanzania, Rwanda, Burundi, South Sudan, and Ethiopia.

However, this does not stop there. In the first five months of 2019, Kenyan Diaspora remittances stood at Sh118.9 billion, a 3.8 percent increase in the same period in 2018.

Here Are The Facts

A World Bank unit known as the Global Knowledge Partnership on Migration and Development prepared the report released in April 2019.
With these figures, remittances in Kenya have now become the biggest source of foreign exchange for Kenya, far more than Kenya’s tourism, tea, coffee and horticulture exports.
With these figures again, it means that in terms of contribution of remittances to the GDP of a country, Kenya’s now stands at (three percent), Uganda (4.5 percent) and Rwanda (2.4 percent) in the region, while Ethiopia saw the least contribution (0.5 percent) and Tanzania (0.8 percent).
This report is significant because it shows that between 2017 and 2018, the rate at which Kenyans sent money back home grew by 39%. The rate has even further increased in the first five months of 2019. Between January and May 2019, a total of Sh118.9 billion, representing a 3.8 percent increase on the same period in 2018, was sent back to Kenya

Where The Money Is Coming From

The money came from about 3 million Kenyans living abroad, many of whom have attained tertiary education and are working in the formal sector jobs.
North America, particularly the United States accounts for much of the Kenyans abroad remittances. At least, 45 percent of all the remittances came from that region. This is followed by Europe at about 23 percent while the rest of the world accounts for about 32 percent.
The US is a popular destination for Kenyans looking for greener pastures and further education, with the latter mostly remaining in the destination countries for work after graduation.
In recent years, however, the Middle East and China are also emerging as a choice destination for those looking for external work opportunities, in line with the rapid economic growth in these regions.

Why So Much Is Being Sent Back Home

Perhaps Kenyans are sending more back home because it has become easier to do so.
The Central Bank of Kenya has, for instance, identified the ease of sending money back home as a major factor in the sharp growth of Kenyans abroad remittances.
Local banks have entered partnerships with remittance service providers that allow them to handle larger volumes of inflows.
The expansion of the popular M-Pesa service beyond Kenya’s borders is also helping, with direct cash transfers on mobile making it easier for the millions who actively use mobile money to receive money instantly from relative abroad.
One of the biggest impediments to inward African remittances has over the years been identified as cost, partly attributable to the lower than global average penetration of formal banking in the continent.
The World Bank report shows that remittances to sub-Saharan Africa remain the most expensive across the different regions of the world.

“The cost was the lowest in South Asia, at five percent, while sub-Saharan Africa continued to have the highest average cost, at 9.3 percent.

“Remittance costs across many African corridors and small islands in the Pacific remain above 10 percent,” said the World Bank in the report.

It also helps if a country has a well-developed banking sector, which opens up formal channels of remitting money back home and reduces the cost of doing so.
Ease of movement of capital also helps. Countries that do not restrict the movement of hard currency are, therefore, likelier to attract foreign investment flows, which encourage the setting up of more robust support infrastructure for remitting money.

Kenya Is Fifth On the Continent As A Whole

Looking at the wide continent, Kenya was fifth last year in terms of volume of money remitted.

Egypt and Nigeria, which are two of Africa’s most populous countries and boast of a large diaspora, led the continent with inflows of Sh2.98 trillion ($28.9 billion) and Sh2.5 trillion ($24.3 billion) respectively last year.
Morocco and Ghana saw remittances of Sh760 billion (7.38 billion) and Sh391.4 billion ($3.8 billion) respectively to also come in ahead of Kenya on the list.
In East Africa, remittances stood at Sh128.4 billion for Uganda, Sh44.3 billion for Tanzania, and Sh42.4 billion in Ethiopia. Rwanda and Burundi had remittances worth Sh23.7 billion and Sh3.7 billion respectively, while there was no data available for South Sudan and Somalia for 2018 in the World Bank report.

“Remittances to sub-Saharan Africa were estimated to grow by 9.6 percent from $42 billion in 2017 to $46 billion in 2018. Projections indicate that remittances to the region will keep increasing but at a lower rate, to $48 billion by 2019 and to $51 billion by 2020,” World Bank noted in the report.

“The upward trend observed since 2016 is explained by strong economic conditions in the high-income economies where many sub-Saharan African migrants earn their income.’’

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.