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Trade evolves in Africa – again

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Arica’s recent historical deficit puts it in a convenient position in terms of adopting new technologies. Other regions have paid the expensive price of being early adopters but African companies can now adopt the best in modern technology, writes BRETT PARKER, MD for SAP Africa.

Trade is in Africa’s blood. Its rich resources, numerous societies and access to the world have created a hotbed of trade civilisations. One could go back millennia to the early kingdoms around the continental horn – the forefathers and peers of the Ancient Egyptian world – or the mysterious Kingdom of Nok in West Africa as examples.

But even in the last 2,000 years Africa never shied away from trade. The Kingdoms of Ashanti and Kongo were world-famous business hubs. In Libya vast desert cities can be found where ancient Berbers built elaborate irrigation systems. The Zimbabwe ruins and South Africa’s Mapungubwe had yielded evidence of extensive trade with Asian and Middle Eastern nations.

But most striking is the legacy of kingdoms that existed along the Sahel: the transitional area between the Sahara and the rest of the continent. Here numerous societies sat shoulder to shoulder, controlling the vast trade moving between Eurasia, West and Central Africa for ages.

Today the world is shifting gears into a new revolution, creating an opportunity for Africa to assert its legacy as the birthplace of business networks. Computational power and connectivity is shrinking the globe, changing how we compete and cooperate. Mastering pace, scale and complexity, creating channels and fostering partnerships have never been more achievable. Some have called this the Network Revolution and it is Africa’s greatest business opportunity yet.

The continent’s recent historical deficit ironically puts it in a very convenient position. Whereas other regions have paid the expensive price of being early adopters, African companies and states can readily adopt the best in modern technology, resulting in real gains on the ground. If there are any doubts about this, just look at the spectacular penetration of mobile devices in Africa: more than any other region in the world. Consider the remarkable growth of Rwanda, which thanks to savvy technology investments has tripled its GDP since 2000.

Success and growth is almost a given when developing markets jump onto the Network Revolution bandwagon. The real question is how to go about it. Here are three steps defining the transition:

From manual to electronic and Internet-based. The Network Revolution is a shift from manual processes kept separate in silos. Automation and accessibility are among its pillars, opening both resources and the ability to cross-pollinate ideas. South Africa’s Department of Home Affairs has dramatically improved its service, auditability and turnaround times by going paperless. It captures all data electronically, which is shared across its footprint. This not only made for happier citizens, but opened the way to adopting the country’s award-winning Smart ID cards.

From an entity and chain to a network. Business networks are the oldest and most vital components to any enterprise’s survival. These are jealously guarded because of their fragility: all it takes is for that proverbial weak link in the chain to break. But today digital

sourcing marketplaces such as Aruba are making it easy to find suppliers, partners and buyers. The mobile phone is a cornerstone to these networks: Africa is currently undergoing a farming revolution in countries such as Kenya and Tanzania, where mobile services help farmers get daily prices, share advice and even gain micro-insurance for their crops across a web of networks, not flimsy top-down chains.

From need to reach and fusion. The biggest impact of the Network Revolution is being born from data. We are increasingly able to quantify aspects of the world through data, be it consumer behaviour, environmental shifts, mechanical maintenance or anything that generates information about its behaviour. That may soon become everything as the Internet of Things brings sensors to every nook of our world. And fusing the resulting data in creative ways to offer new insights will be the differentiator between the haves and have-nots of tomorrow. This is extending the reach and proactivity of companies and governments beyond their traditional boundaries. One example is the Ethiopian Electric Power Corporation, which has accelerated its delivery and boosted efficiency by adopting data-centric thinking.

One element underpins all of the above: the platform. For any business or government to take advantage of the Network Revolution, it must consolidate its processes into a unified software platform: a powerful foundation where everything ties together. Called the 3rd Platform, this is the next step in digital technology, taking advantage of the power and scale provided by modern data centres and connectivity. One example is SAP HANA, the pioneering in-memory platform. Think of it as an operating system for the entire enterprise: a single space upon which all other processes – be it internal tasks, external collaboration, differentiating applications or new technologies – can find a home.

This consolidation pays dividends. Research from McKinsey & Company shows that networked enterprises using collaborative technology to connect processes to customers, suppliers, and partners outpace their peers in nearly every category of business performance. Africa is primed to take the Network Revolution by the horns and reassert itself as the birthplace of business.

Africa News

Mastercard names 9 Africa projects for $9-million fund

The Mastercard Foundation Fund for Rural Prosperity (FRP) has announced that nine companies from seven countries will receive more than US$9 million to support projects that expand financial inclusion in rural Africa.

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The nine companies were selected from more than 300 firms competing in the first two phases of the Fund’s 2017/2018 rolling competition, which launched in June 2017 and closed in January 2018.

The 2017/2018 rolling competition was one of the Fund’s largest in its efforts to find and support providers of innovative and scalable financial products and services that improve the lives of poor people living in rural areas of Africa. Financing for another group of companies, assessed as part of the third and fourth phases of the competition, will be announced in 2019.

The latest round of financial support will extend innovative transactions, green energy, asset finance, mobile banking, agency banking, and distribution/logistics solutions to excluded rural populations in the seven countries.

Phase #1 selected companies are:

  • Equity Bank Congo SA
  • FutureLink Technologies Limited
  • Apollo Agriculture Limited
  • SolarNow Services Limited
  • Easy Solar Limited
  • Dodore Kenya Limited

Phase #2 selected companies are:

  • Farmerline Limited
  • Stewards Globe Limited
  • Microcred Limited

The nature and geographical diversity of the new projects saw the Fund expand its presence to four additional Sub-Saharan countries: Democratic Republic of Congo, Mali, Sierra Leone, and Zambia. The Mastercard Foundation Fund for Rural Prosperity portfolio now includes 30 projects in 11 countries in Africa (Côte d’Ivoire, Democratic Republic of Congo, Ethiopia, Ghana, Kenya, Mali, Mozambique, Sierra Leone, Tanzania, Uganda, and Zambia). The projects comprise a range of businesses from traditional banks and solar-energy leasing companies to agricultural off-taker firms.

“We are excited to add nine more companies to our growing portfolio that is having a positive impact on the lives of millions of people across Sub-Saharan Africa,” said Wambui Chege, Team Leader of the Fund for Rural Prosperity. “Today’s announcement reinforces our belief that there is a wide range of innovative, Africa-led projects that, with a little support, can drive financial inclusion across the continent.”

Lindsay Wallace, Director of Strategy and Learning at the Mastercard Foundation, said: “The aim of the FRP has always been to enable smallholder farmers and poor people living in rural Africa to reach their full potential by supporting new private sector initiatives that provide access to financial services. We’re very happy to see this latest round of selected firms, demonstrating the depth and breadth of ideas and action plans that will do just that.”

Continue reading about the companies on the next page.

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IoT’s answer for Africa

IoT and digitization enables us to efficiently, proactively and predictively address the sustainability challenges that are faced globally and on the African continent, RESHAAD SHA, CEO of Liquid Telecom.

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With Africa’s population set to increase from around 1.3-billion in 2018 to 1.7-billion in 2030, both challenges and opportunities are presented with regards managing issues including food production and security pose  as well the utilization of limited natural resources in a sustainable manner.

Water scarcity and quality for example are realities that negatively impact health, food production and security. Population growth rates and climatic changes place an exponential demand on this scarce and dwindling resource. These are just some of the sustainability challenges facing not just the African continent, but other developing nations and the world as a whole. In addition to this, the demand for the delivery of basic services as healthcare and sanitation also increases.

Against this background of African population growth lies the grim projection that Africa will account for more than 50% of child deaths (under 5) by 2030, while each day, nearly 1000 children die owing to preventable water and sanitation-related diarrheal diseases according to the UNICEF 2017 trends in child mortality report. It’s an alarming fact, given that while some 2.6-billion people have gained access to improved drinking water sources since 1990, 663-million people still do not have access.

The department of Water Affairs and Forestry estimate that the agricultural sector accounts for more than 50% of water use in South Africa and experience water losses of between 30 and 40 per cent. Further, the department states that around 35% of irrigation system losses, often nutrient enriched and containing herbicides, pesticides, and other pollutants, return to rivers. These are just some of the ways in which reactive, inefficient, and manually driven processes have limited us in responding in an impactful manner and timeously mitigating these risks

It is for these reasons and other socio economic and environmental concerns that the United Nations has established its Sustainable Development Goals strategy, addressing the global challenges we face, including those related to poverty, inequality, climate, and environmental degradation.

We need to look at smarter ways that leverage technology in order to addressing these challenges. The situation requires a radical response that delivers a proactive, predictive and data driven approach to addressing these issues with exponentially growing levels of speed and impact.

The IoT ecosystem, comprising of sensors, connectivity, data analytics and workflow automation platforms, and applications are at the core of acquiring, analyzing and harnessing the insights that can be integrated into agriculture, service delivery, health and resource management processer – IoT is at the core of a digitization

One such sector which has benefited immensely from technology is in agriculture pest control, with the implementation of AI and IoT by Spanish startup AgroPestAlert. The innovation makes use of “smart” traps that capture insects and analyse their wing beats to identify their species and even their sex. Placed throughout the fields, the traps communicate with the system to predict an imminent invasion. The system will send alerts to phones, tablets and computers and use an easy-to-understand visual tool to cue farmers instantly.

Around 200-million Africans use approximately 1-million manual pumps across the continent to manually access clean drinking water.  IoT applications have been utilised in assuring the delivery of water through manual these pumps, According to estimates, at least one-third of those pumps will break down at least once in its lifecycle, and up to 70% will break in the second year of operation. The impact of not having access to clean drinking water is dehydration or water borne pandemics.

In the Kenyan Region of Kyusoa, Oxford University began a proof of concept project in 2013, which made use of motion sensors) to capture the movements of the pumps’ handle which was transmitted and analysed in real time. A decision support system based on real data was  used to predict pump malfunctions, allowing for a better planning and shortening the time needed to repair broken pumps, or avoiding malfunctions altogether, directly improving the access to clean drinking water for the rural population.

Liquid Telecom realise that the future of sustainability lies in technology and innovations such as IoT. We provide high speed fiber connectivity to interconnect as well as access platforms to build IoT solutions, in addition to access to Microsoft Azure suite of platforms for analytics and algorithm driven based processing and execution. Our Pan African network enables collaboration and cross border innovation and learning, fast well as the capability to efficiently scale out these solutions on Africa’s Liquid Cloud.

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