Innovation has become a constant topic in Africa, but there has been an emphasis on doing things and less time has been spent thinking about the impact of what’s happening. RUSSELL SOUTHWOOD, CEO of Balancing Act, tries to understand what it means.
Everyone involved in innovation in Africa likes to hear a warming story. As one of the presenters at Fail Fest London put it last week, there’s got to be an image showing a girl looking into a computer screen that puts a golden light on to her eager, upturned face.
Africa’s Innovation agenda has two threads – one donor driven and the other focused on private investment – but as with much else on the continent, each is intertwined with the other.
So whether it’s a donor driven competition or a private investor, there are always parable narratives that capture the spirit of what everyone is hoping to achieve. Whether it’s farmers using phones to get better crop information, a young women buying insurance on her mobile or a young start-up winning a competition prize, these seductive narratives work a bit like the fraudster’s pitch.
I want to be told that innovation is changing lives and Africa is on an upward curve but the danger is that we all end up believing our own propaganda. Because it becomes widely circulated in the media and on social media, it doesn’t necessarily mean it’s true. So what follows is my attempt to try and take apart what might be working from what isn’t.
Start-ups in Africa will tend to work in the larger markets where there are sufficient consumers with mobile phones and enough disposable income for them to get user numbers. Without user numbers, there will not be continuing investment and/or more grant funding. On this basis, start-ups are more likely to be successful in Ghana and Nigeria and Tanzania than they are in Mali, Mozambique or Malawi to take three smaller economies at random.
Start-ups have the same problems that larger companies do in Africa. It’s hard to trade across national boundaries, something that Mo Ibrahim has made one of his constant themes. Many country markets are simply too small but operating in more than one small country is challenging. The absence of common market rules across countries makes the continent a nightmare even for well-endowed multinationals. So it is perhaps hardly surprising that the majority of African start-ups stay in a single country market.
Multi-country roll-out requires capital and some degree of patience and neither of these are in steady supply at the moment. There are a couple of good examples like Africa Internet Group and One Africa Media but these are the exceptions rather than the rule. Despite the constant drumbeat of the Africa Rising tune, there is actually a shortage of investors for African start-ups.
There have been several straws in the wind. Kresten Buch’s pioneering accelerator 88 Mph has pulled back from further work as it tries to find ways to get money out of the start-ups it’s already invested in. Overall, the number of exits from the African start-up ecosystem has been tiny. Another incubator operator told me that only one deal was on the table when they when they went looking for investors so it was not a long queue. For the few bigger international investors, Africa remains a tiny part of their investment portfolio.
Mbwana Alliy of the Savannah Fund (an accelerator and seed fund) told me that almost everyone he was able to raise money from had some connection with Africa and that connection was often personal: for example, they had been on holiday to the continent. Investors are not sitting on the West Coast of America saying I wonder what’s happening in Silicon Savannah. Indeed quite a few would probably be hard-pressed to find it on a map.
Worse still, the current international Internet boom will soon reach its bust: there have been at least two of those since I started following events on the continent. Even worse still, the constant currency devaluations in major markets like Ghana, Kenya, Nigeria and South Africa mean that the value of any investment and its revenues erodes along with the currency.
But let’s put the money to one side for a moment and just look at impact. Start-ups have been responsible for creating a new atmosphere of innovation and are changing how things are going to be done. Although it’s not explicitly stated, all of the good energy and ideas generated by African start-ups is supposed to rub off on the wider society. And they have gone a long way to helping change the mood music in some countries about what can be done if you’re young and have an idea.
Also as Bastian Gotter of Spark told me, the start-ups can offer young Nigerians the chance to break out of the need for connections, patronage and bribery. When you’re able to connect directly with a consumer market, you don’t necessarily need those things. However, both of these things – the rub-off effect and breaking away from patronage structures – may be long-term goals that will take more than ten years to achieve.
So let’s look at some of Africa’s bigger problems and see whether start-ups and innovation can bring about change. Nairobi has gone from being a busy city to one where when there are heavy rains, there is complete gridlock. People sleep in their cars overnight. Despite all the new road-building, even when it’s not raining it can take 2-3 hours to get across the city. This is a productivity issue on a massive scale. Has there been innovation from start-ups or Government to tackle the issue?
There is the ever-dependable Twitter feed @Ma3Route but that simply is about negotiating chaos not changing it. There is much that can be said about Uber (and other local Kenyan versions) but they are unlikely to crack Nairobi’s gridlock. I’ve picked on Nairobi but there are a dozen other African cities with problems that are as bad. Car sharing? Public transport? Rail systems? Park and ride? Bicycles? Electric vehicles? You know the answers to these questions.
Energy is a pressing problem of huge scale for the continent. It’s also a productivity problem as every time the power goes off, people can’t work. Furthermore, everything has to be constantly rebooted and breaks down more often as a result. Local diesel fuelled generators are hugely inefficient.
VC4Africa has an admirable accelerator scheme for energy start-ups. Microsoft has put money into a real wind technology innovator Saphon Energy. But against the scale of the task, these are but tiny gnat bites on the elephant’s bottom. Akon Lighting is a fascinating
initiative (see Energy below) but it is barely off the starting blocks. Where are the micro-grids? The energy distribution players? The tech innovators proposing to import Elon Musk’s Powerwall batteries or their less efficient equivalent from China?
Education is a key part of any different future in Africa. Almost everyone who has been through the system – in whichever country on the continent – will tell you that rote learning does not breed people who can analyze and problem solve. Teacher absenteeism remains high. Projects like the late-lamented Mark Bennett’s iSchool in Zambia are heartbreakingly good. There is also a stream of impressive young African innovators teaching STEM skills through things like robotics and coding. But none of this has yet really entered the bloodstream of African education systems.
I don’t want to bludgeon the point but the impact of innovation so far has been largely marginal on anything that Government delivers. Yet each of the three areas above – transport, energy and education – offer enormous opportunities for Innovation.
Making All Voices Count – an initiative to encourage social start-ups to promote transparency and accountability – is a great initiative. But it relies on trying to persuade a deeply unproductive public sector to react to pressure to become more productive for its citizens. Where is the encouragement for the public sector to innovate? To find ways of spending public funds more effectively? Where are local city innovation schemes? The innovation schemes that get local government to promise and deliver?
But this is not just a public sector issue for many of Africa’s larger private sector companies still have not yet got the innovation message. Some banks have taken initiatives to encourage and acquire fintech start-ups but these initiatives are the exception rather than the rule. M-Pesa started the whole thing and they are trundling along behind. Many of the traditional private sector companies in Africa remain stuck in working practices that went out of use elsewhere in the 1960s and 1970s.
Why does productivity matter for Africa? Let’s just take one example that runs like a thread through all the issues raised above. Africa absolutely must have Internet bandwidth that is cheaper than elsewhere globally because it does not yet have the volume of people who can afford it. There will only be a critical mass of users if lower bandwidth costs are achieved.
In terms of data infrastructure, Sub-Saharan Africa is probably one of the most expensive places to operate globally: diesel deliveries for some base stations in one West African country require a boat and hand wheelbarrow for delivery. For data to become cheaper, the mobile companies (or someone else) need to be innovating new ways of delivering bandwidth more cheaply. Bandwidth is the petrol that fuels innovation and without cheap bandwidth innovation in Africa will be stillborn.
As Harambe’s Matthias Reichwald wrote in Issue 70 of Innovation in Africa:” I see enormous potential for the continent to take the lead in designing disruptive systemic solutions inspired by the vast infrastructure vacuums that still exist in most countries. Whether these are innovative ways to deliver health care and education, groundbreaking ideas in agribusiness and transportation or unprecedented ways for more inclusive governance or approaches to produce energy. Africa’s advantage is that it can leapfrog in areas where the West is dealing with heavy legacy structures which impede innovation”.
The challenge now is to turn this analysis into projects that fundamentally change Africa rather than simply provide seductive success parables that give their promoters a warm glow.
* Russell Southwood is CEO of and founder of Smart Monkey TV. Subscribe to Smart Monkey TV on YouTube
Earth 2050: memory chips for kids, telepathy for adults
An astonishing set of predictions for the next 30 years includes a major challenge to the privacy of our thoughts.
By 2050, most kids may be fitted with the latest memory boosting implants, and adults will have replaced mobile devices with direct connectivity through brain implants, powered by thought.
These are some of the more dramatic forecasts in Earth 2050, an award-winning, interactive multimedia project that accumulates predictions about social and technological developments for the upcoming 30 years. The aim is to identify global challenges for humanity and possible ways of solving these challenges. The website was launched in 2017 to mark Kaspersky Lab’s 20th birthday. It comprises a rich variety of predictions and future scenarios, covering a wide range of topics.
Recently a number of new contributions have been added to the site. Among them Lord Martin Rees, the UK’s Astronomer Royal, Professor at Cambridge University and former President of the Royal Society; investor and entrepreneur Steven Hoffman, Peter Tatchell, human rights campaigner, along withDmitry Galov, security researcher and Alexey Malanov, malware analyst at Kaspersky Lab.
The new visions for 2050 consider, among other things:
- The replacement of mobile devices with direct connectivity through brain implants, powered by thought – able to upload skills and knowledge in return – and the impact of this on individual consciousness and privacy of thought.
- The ability to transform all life at the genetic level through gene editing.
- The potential impact of mistakes made by advanced machine-learning systems/AI.
- The demise of current political systems and the rise of ‘citizen governments’, where ordinary people are co-opted to approve legislation.
- The end of the techno-industrial age as the world runs out of fossil fuels, leading to economic and environmental devastation.
- The end of industrial-scale meat production, as most people become vegan and meat is cultured from biopsies taken from living, outdoor reared livestock.
The hypothetical prediction for 2050 from Dmitry Galov, security researcher at Kaspersky Lab is as follows: “By 2050, our knowledge of how the brain works, and our ability to enhance or repair it is so advanced that being able to remember everything and learn new things at an outrageous speed has become commonplace. Most kids are fitted with the latest memory boosting implants to support their learning and this makes education easier than it has ever been.
“Brain damage as a result of head injury is easily repaired; memory loss is no longer a medical condition, and people suffering from mental illnesses, such as depression, are quickly cured. The technologies that underpin this have existed in some form since the late 2010s. Memory implants are in fact a natural progression from the connected deep brain stimulation implants of 2018.
“But every technology has another side – a dark side. In 2050, the medical, social and economic impact of memory boosting implants are significant, but they are also vulnerable to exploitation and cyber-abuse. New threats that have appeared in the last decade include the mass manipulation of groups through implanted or erased memories of political events or conflicts, and even the creation of ‘human botnets’.
“These botnets connect people’s brains into a network of agents controlled and operated by cybercriminals, without the knowledge of the victims themselves. Repurposed cyberthreats from previous decades are targeting the memories of world leaders for cyber-espionage, as well as those of celebrities, ordinary people and businesses with the aim of memory theft, deletion of or ‘locking’ of memories (for example, in return for a ransom).
“This landscape is only possible because, in the late 2010s when the technologies began to evolve, the potential future security vulnerabilities were not considered a priority, and the various players: healthcare, security, policy makers and more, didn’t come together to understand and address future risks.”
For more information and the full suite of inspirational and thought-provoking predictions, visit Earth 2050.
How load-shedding is killing our cellphone signals
Extensive load-shedding, combined with the theft of cell tower backup batteries and copper wire, is placing a massive strain on mobile network providers.
MTN says the majority of MTN’S sites have been equipped with battery backup systems to ensure there is enough power on site to run the system for several hours when local power goes out and the mains go down.
“With power outages on the rise, these back-up systems become imperative to keeping South Africa connected and MTN has invested heavily in generators and backup batteries to maintain communication for customers, despite the lack of electrical power,” the operator said in a statement today.
However, according to Jacqui O’Sullivan, Executive: Corporate Affairs, at MTN SA, “The high frequency of the cycles of load shedding
An additional challenge is that criminals and criminal syndicates are placing networks across the country at risk. Batteries, which can cost R28 000 per battery and upwards, are sought after on black markets – especially in neighbouring countries.
“Although MTN has improved security and is making strides in limiting instances of theft and vandalism with the assistance of the police, the increase in power outages has made this issue even more pressing,” says O’Sullivan.
Ernest Paul, General Manager: Network Operations at SA’s leading network provider MTN, says the brazen theft of batteries is an industry-wide problem and will require a broader initiative driven by communities, the private sector, police and prosecutors to bring it to a halt.
“Apart from the cost of replacing the stolen batteries and upgrading the broken infrastructure, communities suffer as the network degrades without the back-up power. This is due to the fact that any coverage gaps need to be filled. The situation is even more dire with the rolling power cuts expected due to Eskom load shedding.”
Loss of services and network quality can range from a 2-5km radius to 15km on some sites and affect 5,000 to 20,000 people. On hub sites, network coverage to entire suburbs and regions can be lost.
Click here to read more about efforts to combat copper theft.