On Africa, Growth and Transformation

Below are some thoughts I wanted to share today at the closing plenary of the World Economic Forum on Africa. Many thanks to Mike Macharia, Bill Hoffman, Lorna Irungu-Macharia and Paul Cohen for their thoughts. [More edits later when I get time!]

With population growth of < 30 who could be disaffected, unemployed uneducated or we could be investing in this generation to make them innovative entrepreneurs who are participants in shaping a better future. Africa is at an inflection point of engaging and training the future. From Large corp, Civil Society, innovation hubs like iHub. We should engage on transforming Africa, or we give up a century.

McKinsey estimates Africa’s gross domestic product at about US $2.6 trillion, with US $1.4 in consumer spending. Africa’s population growth and urbanization rates are among the highest in the world and these are the statistics generating demand for innovative new ways to handle the problems they raise

Be careful not to confuse growth with transformation. Growth statistics can provide confidence to invest and a willingness to change. Change cannot be orchestrated, sometimes it happens often from the bottom up. Tolerance for this change and actually support for these changes. One of those positive changes is the growth of innovation and business hubs like the iHub in Nairobi, Bongohive in Tanzania and IceAddis here in Ethiopia. e.g Tax Breaks and incentives for innovation hubs Africa wide. Connect, Invest and scale the work happening here.

A connected world has different velocities, power structures, different risks but transformative opportunities. We are in a hyper connected century of not just consumers, but producers, diverse micro economies and We cannot be afraid of complexity, diversity and gender equity. Empowerment of women and education. Although only 1 in 5 women is a legislator it is higher than the global rate.

Solutions need to be Demand based From my perspective: We can learn from Technology adoption worldwide can provide near term benefits in areas in Agriculture, a woman with a mobile phone and access to an Ushahidi system to get information about appropriate plant disease in Argentina. Adoption of these kinds of systems in Africa can help. The best uses of open source technology is often not under our control. We can provide a great skeleton on which various stakeholders can flesh out appropriate, local solutions. In addition there are homegrown startups like Mfarm and iCow in Kenya. These are young tech women creating solutions for the agricultural sector. We need to support and scale what they are doing to other parts of Africa.

Illusion of a nexus between education, entrepreneurship and innovation. There are real gaps that need to be filled. Focus needs to be on bridging these gaps in a real way and not just in talk. Digital and financial literacy need to be embedded into education systems. Nevertheless, In a nation of 34 million, over 28 million Kenyans own a mobile phone, representing 71.3% of the total population. There is an opportunity to do more to impact more people with the technology they have in their pockets.

Unbelievable paucity of intra-african trade, cost of a 40% of US trade is within NAFTA, 60% of European trade is within Europe, 12% of African Trade is within Africa. The cost of a phone call from Kenya to the US is 10kes, India and China 18kes, and within Africa, 30. Clearly there is more to do here from infrastructure perspective to even internet access where only 13% of Africans have internet access.

Culture: Reimagining “This is Africa” When faced with Process and resource efficiencies, we need to be impatient and demand better. It is not enough to have 600 million mobile subscribers we have answer the question of access to what. Do people have access to healthcare, education, finance and agriculture information and services via those mobile phones or do we have another digital divide emerging. What needs to happen is to figure out the economics for provision of services everywhere even in rural areas. In 10 years Europer could look to Africa on how to crack this.

Linking the digital and physical world in a coordinated way can provide efficiencies. The Transportation sector could benefit greatly transnational communications.
The African opportunity is not just theoretical, given the right opportunity; people can make incredible contributions; as we have seen with several African business leaders from Africa and this year’s Social Entrepenuers. Talent is universal opportunity is not. In order to transform Africa, we need to create opportunities. I was greatly encouraged to see Bethhelem’s sole rebels workshop. She is creating opportunities and is already transforming Ethiopia with a global business. Mxit is an instant messaging and social network platform that processes over 500 million transactions every single day. Fantastic contributions.

The transparency we see with the open data movement, presents opportunity in creating a new asset class. When governments provide data that is accessible, relevant and useful. Many government agencies have fantastic information on historical weather patterns, water levels in rivers and even consumer protection information. Providing that data in an accessible and meaningful way could lead to a new data economy where entrepreneurs leverage that data to reduce inefficiencies.

Hyper local innovation that can make a difference on a village level. It matters and we need open platforms to support these kinds of innovations.

Innovative ideas? Draw on the open source culture that helped grow Ushahidi. global entrepreneurship index is at 2.49: Kenya is at 2.63, second only to Nigeria at 2.7 in Africa among others like the US at 2.8. This number clearly depicts the great potential for Kenya to become a globally- recognized ICT center and more so, an environment for nurturing entrepreneurs talent to a higher level.

Making the case for open source technology as an investment not only by ministries, to invest in the youth in a truly concerted way to build future businesses. What if the national innovation ecosystem is not driven by local needs and culture, its great to partner with multinationals in clusters, but that needs to happen in partnership with local firms. To enable knowledge and skill transfer. That is key in various industries.

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