Destin Africa
Kshs. 300 / Ushs. 9000 Tshs. 6000 / RWF. 2200 ISSUE 26 / 2019
INSIDE MARY MWANGI CREATES A THRIVING TECH COMPANY BY DIGITIZING PAYMENT SYSTEMS FOR BUSINESSES TAXIFY REBRANDS TO BOLT AS IT SEEKS TO SOLVE TRANSPORTATION PROBLEMS CLOUD COMPUTING UNLOCKING RAPID INNOVATION IN AFRICA
FANAKA REAL ESTATE RAISES STANDARDS IN THE PROPERTY SECTOR
MOSES MURIITHI, MD, FANAKA REAL ESTATE. www.destinafrica.co.ke
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Editor’s note
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New Curriculum Set to Inculcate Entrepreneurship Skills
E
ntrepreneurship is enthralling. Some people start big ventures by investing huge sums of money, but after a while, they throw in the towel. Ironically, others start small or with nothing, and end up growing large in just a few years. How they successfully swim in the turbulent waters of entrepreneurship is not easy to unravel. But if there are two things common to most self-made entrepreneurs, it’s hard work and resilience. If it was easy, everybody would have already done it. If it was easy, it wouldn’t have any value. Furthermore, those who venture into business out of choice, rather than circumstances, often succeed. These are the people who run their enterprises with much enthusiasm.
While entrepreneurship is viewed as an alternative for joblessness or for those who fail to get good grades in their examination, the unveiling of the new curriculum by Education CS might just change this perception. The New Education System in Kenya, which kicked off this year, replaced the 8.4.4 system that has served the country for good lasting about three decades. The New Curriculum is set to inculcate entrepreneurship as a concept to learners from early stages of education to the university level. Experts are of the view that it will enable learners to develop beyond academics and also focus on how best they can use their specific talents to make a living. According to the Kenya Institute of Curriculum Development (KICD), the new curriculum will give every child in Kenya an opportunity to thrive – and no child will be left behind. In the same vein, teachers will be empowered to approach teaching and assessment in a more effective way that will secure high standards for all.
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Contents
Destin Africa
22. Entrepreneur Watch
20.
24. COVER STORY
5. EDITOR’S NOTE 10. GET INSPIRED 12. CORPORATE NEWS NSSF Actis EAPI Summit
18. TECHNOLOGY Microsoft Opens First Datacentres in Africa with General Availability of Microsoft Azure
20. INSPIRING WOMAN
Fanaka Real Estate Raises Standards in the Property Sector
Mary Mwangi Creates a Thriving Tech Company by Digitizing Payment Systems for Businesses
28. FEATURE Taxify Rebrands to Bolt as it Seeks to Solve Transportation Problems
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Destin Africa 8
Editor-in-Chief : SUSAN ARMSTRONG
GET 25% OFF
EDITORIAL Features Editor JENNIFER NYAWIRA Features Editor SHABAN AHAB Assistant Editor ALEX NYAMU Digital News Journalist JOE
DESIGN & PRODUCTION Art Direction & Design CAITLIN SHARON Graphic Designer FELIX CONTRIBUTORS Samuel Kariuki Hasnain Noorani Andrew Sordam Gilbert Kuria Dr Johnstone Miheso MARKETING & DIGITAL Head of Digital and Marketing JACKSON THUITA Digital Content Producer AMANDA Digital Coordinator KATE ISSAH FINANCE & OFFICE MANAGEMENT Accounts – accounts@destinafrica.co.ke Head of Sales & Media STEVE – steve@destinafrica.co.ke
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Published by Forafrica Media P. O. Box 74298-00200 Nairobi, Kenya. Cell: (+254) 774 680 871 / (+254) 739 553 074 E-mail: info@destinafrica.co.ke Website: www.destinafrica.co.ke Destin Africa @destinafrica
© 2019 Destin Africa published by FORAFRICA MEDIA. Copyright subsists in all work published in this magazine. Any reproduction or adaptation, in whole or in part, without written permission of the publishers is strictly prohibited and is an act of copyright infringement which may, in certain circumstances, constitute a criminal offence. www.destinafrica.co.ke
9 Destin Africa
Contents
30. AFFRODABLE HOUSING
28.
Wall Street Financier tackles Affordable Housing
32.
OPINION
32. REAL ESTATE 34. HOSPITALITY 36. CLOUD COMPUTING 38. AGRIBUSINESS 40. HUMAN RESOURCE 42. HEALTH & FITNESS Understanding Kidney Stones Disease And How It Presents
44.
44. MOTOR New Mercedes Benz C-Class Luxury Saloon Arrives in Kenya 46. TRAVELWISE Air France Set to Increase Weekly Flights to Nairobi
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Get Inspired
Provoking Quotes By Entrepreneurs And Executives
“No matter how good a product you have, still in Africa it is your reputation that counts.” Ivan
Mbowa, co-founder of Umati Capital in Kenya
“Life is about having something to give in order for you to receive. And what is it that you have? You’ve got the brains, the intellectual capital and that will actually open many doors for you. So the first capital that you need, more than money, is intellectual capital.” Lufefe Nomjana, founder
of Espinaca Innovations in South Africa
“Sometimes you fix one problem and another arises. So you have to be focused, be flexible, and be willing to adapt to changes. Going into employment can be tempting – but I stay put knowing that I will achieve my goals one day, even if it takes 10 years.” Sam Turyatunga,
founder of Tursam Investments in Uganda www.destinafrica.co.ke
“It is all about creating value for customers. And if you can’t do that, then you shouldn’t be in business.”
Nadir Khamissa, South African entrepreneur and co-founder of Hello Group
“ “Entrepreneurship does take a toll on your social life. You are always focused on the business, thinking about work, even when you’ve taken time off to unwind… You need to be passionate about what you are doing. Then you need to have a purpose – for me it’s building a legacy and having a positive influence in society. Then you need perseverance to stick through the tough times; a plan to get you where you want to go; and good people to walk with you.”
Trushar Khetia, CEO of Society Stores in Kenya “I don’t think there is ever a right time. A lot of times an entrepreneur has to make a decision and make a move. If you keep waiting for the right time, which means the safest time, you might wait forever.” Carole
Mandi, founder of Carole Mandi Media Limited in Kenya
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Destin Africa 12
Corporate News
Safaricom chief enterprise business officer, Rita Okuthe (centre) and chairman board of trustees NSSF, Gen. (Rtd) Dr. Julius Karangi (right) mark the launch of the NSSF and M-Pesa partnership that will see citizens make NSSF contributions via M-Pesa on a real-time basis. Looking on is NSSF CEO, Dr. Anthony Omerikwa.
NSSF Partners With M-PESA in Cashless Drive
T
he National Social Security Fund (NSSF) has partnered with Safaricom as it embarks on a push to fully adopt cashless payments. Under the initiative, NSSF will implement an entirely cashless system at all its branch network across the country. The Fund seeks to increase the convenience and efficiency of its services through the automation and digitization exercise. “The platform we are launching will make contributing to NSSF easy and effortless, We are aware that we have an enormous task ahead in meeting public expectations in our new role as a pension fund and I wish to assure you that the Fund is striving to enhance the member experience and we have a couple of initiatives that we shall roll out in the next couple of months,” said Chairman Board of Trustees, NSSF Gen. (Rtd) Dr. Julius Karangi. Under the new system, NSSF members can
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now remit their contributions and other payments to the organisation through the M-PESA PayBill 333300. Contributors can now easily key in their NSSF Account number under the “Account Number” option and complete their transaction without visiting the NSSF offices.
“We are proud for NSSF to have selected Safaricom as a partner in their shift to fully automated and cashless operations. More of our enterprise customers are adopting digitization as they increasingly focus on their customers’ needs. By cutting down on time spent handling and reconciling cash payments, the NSSF and its members can now enjoy the benefits of increased operational efficiency,” said Rita Okuthe, Chief Enterprise Business Officer, Safaricom. Through this partnership, employers with 20 and fewer employees can now also make their staff contributions through M-PESA. To contribute, the employer
uploads their payroll data to the NSSF portal, after which they generate the Unique Payment Number (UPN) as part of their payment order. The employer then keys in the UPN as the Account Number under M-PESA.
NSSF has also enabled its members to use a self-service portal through www.nssf. or.ke or the NSSF Mobile App available on Google Play Store which they can track their contributions and also through which new members can register. In addition to launching the cashless platform NSSF is also enhancing the ease of doing business whereby returns will only be filed online from today henceforth.
Mobile payments have emerged as the most popular mode of cashless payments with data from the Central Bank showing almost nine of every ten cashless payments in the country were on the mobile phone as of December 2018. According to a GSMA report, citizens prefer mobile payments for government services due to the associated cost savings of up to more than 75 per cent.
13 Destin Africa Corporate News
Sidian Bank Receives USD 12 Million Tier 2 Capital Injection from The Investment Fund for Developing Countries (IFU)
of the bank, and we look forward to leveraging their breadth of experience in the financial services sector. Centum Investment together with the other shareholders of Sidian Bank, continue to be committed to building a strong bank with robust governance structures that will support the drive to be the preferred bank for SMEs”. As the bank’s net loan book grew from KES 11.4 billion as at December 2017 to KES 13.1 billion as at 30th September 2018, and the Trade Finance portfolio recorded significant growth from KES 6.6 billion as at December 2017 to KES. 14.2 billion as at 30th September 2018, the bank is on track to being enlisted as a Tier 2 bank. To further this growth, Sidian bank has begun targeting the digital savvy segment of its clientele and the unbanked sectors of its target market through an upgrade of its mobile banking platform that also incorporates mobile lending.
S
idian Bank has inked a deal with The Investment Fund for Developing Countries (IFU), a Danish Development Finance Institution (DFI) that will see the bank receive USD 12 million Tier 2 capital injection as part of the broader initiative to grow the bank to Tier 2 status. The funds are expected to boost the bank’s regulatory capital ratios as it works towards achieving its strategic objective of becoming a Tier 2 bank by 2022. The shareholders of the bank approved a rights issue of KES. 1.5 billion and a tier 2 capital raise of KES. 1.2 billion, which in combination will support growth of the bank’s assets by an additional KES. 10 billion to KES. 35 billion. We are pleased to report that in the recently concluded rights issue, Sidian Bank raised KES. 1.1 billion and today we are here to announce IFU’s USD 12 million
investment in Tier 2 capital in Sidian Bank. The funds will be used to enable the bank further its mission to empower entrepreneurs through the strategic growth of its loan book with a key focus on the SME loan book, trade finance portfolio and mobile lending. As part of the agreement, IFU will have the option within the first three years, to convert their investment into equity, subject to Central Bank of Kenya (CBK) approval.
Speaking during the official signing of the funding agreement, Dr. James Mworia, Chairman of the Board of Sidian Bank stated that “We are very pleased with the decision by IFU to invest $12 million in the bank. This is a major vote of confidence in Sidian Bank and its strategic initiatives by an institutional investor with significant investments in financial services companies across the globe. In addition, IFU will serve on the board
Mr. Morten Elkjaer, IFU Vice President, presiding over the agreement signing on behalf of IFU emphasized that: “We are very pleased to engage with Sidian Bank and its shareholders. We believe this will help increase access to finance that can spur growth of SMEs and contribute to sustainable development and jobs in Kenya by providing effective and timely financial services. Our investment in Sidian Bank is the first investment to unfold our new strategy to support more financial institutions with an SME focus”. Mr. Chege Thumbi, Chief Executive Officer at Sidian Bank, further added that “The funding comes at a time when the bank has intensified accelerated growth with an aim of achieving its 5-year strategic goals. With this investment, the bank will be well capitalized with high liquidity, offering ease of access to funding, financial backing and fast turn-around times for our SME customers and by extension position us as the bank of choice for SMEs and entrepreneurs. We anticipate that the investment by IFU will therefore drive improved performance of the bank profitably.”
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Destin Africa 14
Corporate News
Actis and Shapoorji Pallonji Launch a US$ 120 million (KSH 12 billion) Joint Venture Platform to Develop Affordable and Middle-Income Housing in Africa
Mr. David Morley, Global Head of Real Estate -ACTIS.
• Seeks to address the acute shortage of affordable and middle-income housing • Brings to bear large-scale institutional homebuilding expertise • Starting in and based in Kenya with sub-Saharan ambitions
A
ctis, a leading growth markets investor and Shapoorji Pallonji Real Estate (SPRE), the real estate arm of one of India’s largest conglomerates, are set to launch a new real estate joint-venture platform to meet the demand for affordable and middle-income housing in the sub-Saharan African region, starting with Kenya. The residential development platform has www.destinafrica.co.ke
Mr. Venkatesh Gopalkrishnan ( CEO, Shapoorji Pallonji Real Estate).
been established to capitalize on the demand for quality homes at affordable and competitive price points.
Actis manages the largest real estate private equity fund focused on sub-Saharan Africa. David Morley, Global Head of Real Estate at Actis stated: “This joint venture builds on an ongoing and highly successful partnership between Actis and Shapoorji Pallonji in India where we have delivered thousands of high quality, aspirational homes at affordable prices. We are confident that Actis’ investment experience in Africa coupled with Shapoorji Pallonji’s 153 years of experience in construction and real estate development will unlock the significant opportunity.” Commenting on the launch of the new platform, Venkatesh Gopalkrishnan (CEO,
Shapoorji Pallonji Real Estate), said: “We are delighted to partner with Actis in the African residential market. This venture marks the continuation of a journey for Shapoorji Pallonji Real Estate in the subSaharan African Region. There is a huge demand for affordable and middle-income homes and the goal of the joint-venture platform will be to bridge the gap in this market and to exceed customers’ expectations.”
Koome Gikunda, Director at Actis said: “Residential remains the largest real estate asset class globally. In a number of African markets, however, delivery is highly fragmented. There is a notable lack of institutional quality homebuilders with the expertise, capital and consumer trust to truly address the opportunity at scale. Actis’ joint venture with Shapoorji Pallonji seeks to remedy this in partnership with our local stakeholders.”
15 Destin Africa Corporate News
East Africa Property Investment (EAPI) Summit to be held in April 2019 Summit to deliver Affordable Housing Investment Manifesto to Government
I
n recognition of its established mandate to drive investment and transaction within the regional real estate industry, the East Africa Property Investment (EAPI) Summit on 10 & 11 April 2019 will harness its agenda setting platform to develop and deliver an Affordable Housing Investment Manifesto to National Government.
According to EAPI’s Managing Director Kfir Rusin, the manifesto will help streamline private sector investment into Affordable Housing and provide a concrete mechanism for engagement with public sector leaders. The development of the manifesto follows the endorsement of the Summit by the Affordable Housing Plan’s chief architect Charles Hinga Mwaura, the Principal Secretary, State Department of Housing & Urban Development earlier this month.
“In line with the Government’s Big 4 Agenda on Housing, we note that the EAPI Summit will provide a platform for the public and private sector to discuss new means of reducing the overall cost of doing business to create a more affordable and sustainable real estate sector,” said Mwaura in his official letter of endorsement. Acknowledging Hinga’s confidence in
the EAPI Summit, Rusin highlighted EAPI’s history of proving an annual industry platform to drive investment and formalization, which provides the necessary industry capital to develop a credible Manifesto.
“EAPI is the only platform with the industry capital and credibility to develop and present an Access to Affordable Housing Manifesto, which will be developed during EAPI 2019 to highlight challenges and solutions to private sector investment and participation in Affordable Housing,” confirmed Rusin. And although the Kenyan Government’s Affordable Housing Plan is attracting interest from a wide variety of parties; the challenge has been to connect and identify projects to all stakeholders in the regional value chain, as Mwaura noted in his letter of endorsement.
“We look forward to this opportunity to showcase our existing and pipeline projects to potential business partners and to make our contribution in the delivery of government’s housing plan.”
EAPI Objectives While the delivery of an Affordable Housing Manifesto is a significant objective of this year’s affordability focused forum;
the summit will provide the working environment for industry leaders to work towards achieving the following strategic objectives in 2019: • Connect investor capital (international private equity & institutional) to statebacked affordable housing projects; • Reducing the cost of construction; • Lowering the cost of capital; • Creating an enabling framework & environment for large scale property development; • Building the investment case for alternative asset classes and affordable housing; and • Unlocking land for real estate development.
Commenting on the industry’s need to work towards achieving affordability, Rusin said: “Understanding and setting objectives are key to driving investment and development of mass-scale affordable housing projects, and the number of new international development funds attending EAPI is proof that Kenya is well positioned to provide the affordable housing blueprint for the continent to follow.” He added that “We are honoured to have the Ministry’s endorsement and look forward to working together in taking affordable housing from discussions and talk to actual transactions and physical deals. It’s clearly evident that the Affordable Housing Plan is attracting some of the world’s most serious investors and developers.”
Now in its sixth year, EAPI 2019 two-day real estate agenda setting platform will play host to the largest international and regionals developers such as Echostone USA and South Africa’s International Housing Solutions who will present case studies on their mega Nigeria project and South Africa respectively to 500 + delegates. Additional noteworthy investors include the UK’s CDC, USA’s OPIC, The World Bank’s IFC amongst many others.
While this year’s theme: Driving Affordability through the Property Value Chain, has drawn inspiration from the Government’s Affordable Housing Plan, the two-day event will continue to cover all the major real estate asset classes in East Africa under the “lens of affordability,” ended Rusin. www.destinafrica.co.ke
Destin Africa 18
Technology
Microsoft Opens First Datacentres in Africa with General Availability of Microsoft Azure
The combination of Microsoft’s global cloud infrastructure with the new regions in Africa will create greater economic opportunity for organisations in Africa
M
icrosoft announced the opening of its first datacentres in Africa, with the general availability of Azure from the new cloud regions in Cape Town and Johannesburg, South Africa. This makes Microsoft the first global provider to deliver cloud services from datacentres on the continent, which will help companies securely and reliably move their businesses to the cloud while meeting compliance needs. “Microsoft Azure is now available from our new cloud regions in Cape Town and Johannesburg. The combination of Microsoft’s global cloud infrastructure with the new regions in Africa will create greater economic opportunity for organisations in Africa, accelerate new global investment, and improve access to cloud and internet services,” says Yousef Khalidi, corporate vice president, Azure Networking, Microsoft.
Ibrahim Youssry, general manager, North, West, East, Central Africa, Levant & Pakistan, Microsoft said, “Today is a milestone moment in bringing the global cloud closer to home for African citizens and businesses. Enterprises across Africa can now take full advantage of the many benefits of Microsoft Azure, using cloud services to maintain security and meet compliance standards.” According to the Cloud Africa 2018 report cloud use among medium to large organisations in Africa has more than doubled between 2013 and 2018. Due to www.destinafrica.co.ke
the benefits of cloud in offering efficiency and scalability, more than 90 percent of surveyed companies in South Africa, Kenya and Nigeria have plans to increase their spending on cloud computing in the next year. However, a secure offering remains important in maintaining this momentum, with many African CEOs concerned about cyber threats.
“Microsoft has deep expertise in protecting data and empowering customers around the globe to meet extensive security and privacy requirements, including offering the broadest set of compliance certifications and attestations in the industry,” adds Khalidi. “We look forward to supporting more African enterprises in their cloud journeys and offering a trusted path to digital transformation.” An investment in Africa With a network of over 10,000 local partners – and a nearly 30-year history of operating on the continent – the new datacentres form part of Microsoft’s ongoing investment to enable digital transformation across Africa.
In 2013, Microsoft launched its 4Afrika Initiative working with governments, partners, start-ups and youth to develop more affordable access to the internet, 21st century skills, and locally relevant technology. Recently, this included a partnership with FirstBank Nigeria to expand cloud services and digital educational platforms to SME customers.
In Kenya, Microsoft is expanding FarmBeats, an end-to-end approach to help farmers benefit from technology. FarmBeats strives to enable data-driven farming, bringing together traditional knowledge, intuition and data to help increase farm productivity and yields.
On the skills development front, Microsoft has established a network of over 800 Microsoft Imagine Academies, offering students of various age groups direct training in the technology field. Together with the African Development Bank, Microsoft is also rolling out `Coding for
19 Destin Africa Technology
We’re working with partners to accelerate cloud readiness and adoption in Africa, ensuring enterprises can deliver services to market faster Employment` to create 25 million jobs and reach 50 million youth and women across Africa.
“We’re working with partners to accelerate cloud readiness and adoption in Africa, ensuring enterprises can deliver services to market faster, businesses can make more data-driven decisions, and governments can better connect with citizens,” adds Youssry. “As we connect more businesses to Azure, we’re seeing heightened innovation in the cloud and start-ups expanding their services to new markets. The combination of Microsoft’s global cloud infrastructure with the new regions in Africa will now connect businesses with even more opportunity and customers across the globe.” Azure is the first of Microsoft’s intelligent cloud services to be delivered from the new datacentres in South Africa. Office 365, Microsoft’s cloud-based productivity solution, is anticipated to be available by the third quarter of calendar year 2019, while Dynamics 365, the next generation of intelligent business applications, is anticipated in the fourth quarter.
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Destin Africa 20 Inspiring Woman
Mary Mwangi Creates a Thriving Tech Company by Digitizing Payment Systems for Businesses Ms. Mary Mwangi is an entrepreneur, co-founder, and the chief executive officer of Data Integrated Limited (DIL), a Fintech company that specializes in developing customized point of sale systems. The company automates payments processes found within Sub-Saharan Africa by providing software as a service (SAAS.) Ms Mwangi has managed a team with whom she has developed Integrated Point of sale solutions for both Kenya and Rwanda. The innovative entrepreneur has a broad range of experience having worked in banking, accounting, IT and business management in the Kansas City area before moving back to Kenya about 5 years ago. She holds a degree in accounting from Rockhurst University in Kansas City, MO USA.
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H
ow did you get started as an entrepreneur? I had been living in the US for many years and each year I came to visit Kenya my family would ask me to move back. I told them that I would only move back if I found something I would enjoy doing. I saw an opportunity with Mpesa that I thought was a needed solution to digitize payment systems for business and have them get paid through Mpesa. That is how I started Data Integrated as an automation payment system for small to medium “SME”sized businesses, thus I became an entrepreneur.
Tells us more about Data Integrated? DIL is a company that is working to digitize payments and payment process for SME’s. To date, we have developed a payment platform for two main verticals: Transport industry and the hospitality industry (bars and restaurants). DIL’s team created a payment aggregator platform that is integrated with mobile money providers and banks.
What inspired you to start the business? I was inspired by seeing how small companies did not use payment automation to improve their businesses and knowing that this is an important factor for today’s businesses to survive. I was brought up by a business woman and all along knew I would start my own business. It just was not always clear what kind of business it would be. What sets Data Integrated apart from others? At Data Integrated, we build customized solutions with the local businesses. We have a comprehensive approach to the problem we are trying to solve which is payments automation. We develop solutions that give 360 degrees view to payment processes and the resources that are being utilized to transact. What can you say you have achieved so far? Our transport management fee payments
21 Destin Africa Inspiring Woman
Data Integrated Limited team.
solution has been running since 2015 and with the successful launch of our SmartTransport (MobiTill Epesi) solution in January of 2018, we have gained traction within the transport industry, processing over 5,000,000 transactions with a total amount of over 50 million dollars transacted on our system in one year. In just over 6 months of piloting our s-Transport solution on 90 buses and 4 Ferries, DIL has succeeded in bringing an innovation system in public transport’s planning, operations and management.
We have multiple key partners in Africa, including banks, telecommunication companies, and global service providers such as Visa, Microsoft, AWS among others. Furthermore, we have been able to position our solutions to be part of the 4 th industrial revolution that will contribute to the future of Africa’s growth. Any challenges faced? A key challenge I have faced is sometimes getting cooperation from partners
especially when you are a startup that is not well known and you miss out on getting taken seriously especially within the Kenyan government.
What gives you the most satisfaction being an entrepreneur? Being an entrepreneur is an exciting role. It has its ups and downs, but with more ups. My joy comes from knowing that we are solving a problem that requires attention and we understand the need. I work with an amazing team that inspires me to keep
My joy comes from knowing that we are solving a problem that requires attention and we understand the need
pushing on every day.
What are your future plans and aspirations for your company? As a solution provider, we believe that our work is to train and build capacity within the businesses that we work for. Being within the tech ecosystem, we hope to contribute to the learning and growth of building hardware and software solutions within the continent that will improve the way businesses operate. We are building an integrated system of sensors, machine learning algorithm and data analytics to provide a solution that improves the operations of public transport. We hope to become the leading public transport solution provider in the region and beyond.
Piece of advice for aspiring entrepreneurs? To women who are looking to start up a business, be brave and surround yourselves with support teams, make sure to do something you are passionate about, it makes the hard times seem easier. www.destinafrica.co.ke
Destin Africa 22 Entrepreneur Watch
Nicolas Pompigne-Mognard, Founder & Chairman, APO Group. www.destinafrica.co.ke
23 Destin Africa Entrepreneur Watch
How Nicolas PompigneMognard Turned 10,000 Euros of Savings into a MultimillionEuro Business He is the founder of APO Group, a leading media relation consulting firm and press release distribution service in Africa and the Middle East
F
ranco-Gabonese entrepreneur Nicolas Pompigne-Mognard is the founder of the APO Group, a leading media relation consulting firm and press release distribution service in Africa and the Middle East. The company, which Pompigne-Mognard founded in 2007, employs close to 80 employees across its offices in Switzerland, Dubai, Senegal and Hong Kong, and has an annual turnover of several million dollars. APO’s bluechip clients include GE Africa, Dangote Group and DHL among others.
Nicolas Pompigne-Mognard recently stepped down as CEO of APO Group, and will now assume the position of Chairman, focusing on delivering high-level counsel for APO Group clients and developing his own investment fund dedicated to Africa. He recently recounted the story of APO’s early beginnings and mused on the evolution of the media relations business in Africa.
How it started I was a journalist. I studied law. I really was not prepared to create, much less develop a multinational company. I built APO Group from my living room - literally - and during the first years I had to be the IT manager, the sales consultant, the PA, HR, Finance, Marketing - everything. I had to learn it all from scratch. Not to mention, my English was very poor. Ten years ago, I was in the European headquarters of PR Newswire, in London. At the time, they were considered the leading global press release distribution service
and there I was explaining to several of their senior executives how Africa will soon represent a huge market for press releases - and why it was time for them to invest in the continent. It was 2008, remember, and they basically laughed at me.
There are around 440 US companies and 480 German companies who have been operating in South Africa for several years now. Today, most of them are planning their expansion across the continent to get their chunk of this huge untapped market.
The days where media houses could rely on advertising as a sole revenue stream are long gone. Consumers are not browsing for advertisements - they are browsing for content.
In the last few years, big international media players have started to come to Africa. CNBC, Euronews, Forbes, CNN and BBC have all increased their presence on the continent. The Washington Post announced this week they will be opening a new office in West Africa. If the international media can see the potential, the African media needs to make sure it keeps up.
If there are two things common to most self-made entrepreneurs, it’s hard work and resilience
Growth Our turnover grew by 50% in 2017 and was projected to grow by 60% in 2018. Our press release distribution activity grew by 44% in volume in 2017 and is projected to maintain that growth in 2018, while our advisory division is projected to grow by 50% in the same year.
I would say my greatest accomplishment is to have turned my 10,000 euros of savings - which I invested to create APO in 2007 - into a multimillion-euro business without the aid of any loans or investors. That means that, 11 years later, I’m still the 100% owner of my company. As we’ve seen, the situation in Africa is such that, in many ways, we are the right company at the right time with the right services on the right market.
I always knew that someday I would have to hand the reins to a “professional CEO” so he or she could make sure the company realizes its potential. The new CEO I have appointed, Lionel Reina, is the former Vice President and General Manager for Eastern Europe, the Middle East and Africa at Orange Business Services, the B2B division of French telecoms giant Orange. He has also served as Middle East Director in the Gulf region for Accenture.
If there are two things common to most self-made entrepreneurs, it’s hard work and resilience. If it was easy, everybody would have already done it. If it was easy, it wouldn’t have any value. Courtesy of APO Group
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Destin Africa 24 Cover Story
W
hen Moses Muriithi was still on campus, he knew he wanted to venture into the real estate sector. That’s why he endeavored to raise start-up capital, which he used to buy few parcels of land at prime locations. “I used to do freelance writing, and from the earnings I made, I invested in real estate,” he says.
However, Muriithi reveals that his journey to own land was not a walk in the park. “I visited several real estate companies and realized that there were many shortcomings.” Real estate is a sensitive matter as it is capital intensive. Investors must be issued with proper documentation such as letter of offer and title deeds, besides having a guarantee of the value of the product they are investing in.
Muriithi feels that many people buy parcels of land, which they can’t resell due to lack of demand. In this case, he believes location is a determining factor while investing in real estate. It is due to these shortcomings in the market that inspired the young entrepreneur to establish Fanaka Real Estate in 2016.
The company was born to bridge the gaps in the industry. “I’m the kind of person who tries to seal gaps in the market. I believe that business is about fulfilling someone’s needs.”
Moses Muriithi, Managing Director, Fanaka Real Estate.
Fanaka Real Estate Raises Standards in the Property Sector The company focuses on providing value to its clients by offering parcels of land at prime locations with ready title deeds By Jennifer Nyawira
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“Our products are within a radius of 50 km from Nairobi,” says Muriithi, adding that “People living in Nairobi need a place they can call home, somewhere they can settle and manage to go to work daily.” It’s important that people consider investing in cosmopolitan locations where there is high possibility of growth and appreciation.
Furthermore, Fanaka offers proper documentations to its customers and even allows them to do due diligence prior to buying the property. Once a customer identifies the project they want to invest in, they are given a copy of the title deed,
25 Destin Africa Cover Story
which they use to perform an official search. Once they are convinced the land is genuine, they are issued with a title deed within three weeks upon payment. Muriithi advises people to always do due diligence by visiting the location, buying the map of the area, and conducting a search to ensure they do not lose money along the way. Many people shy away from investing for the fear of losing their money in fault deals.
The real estate company also launches projects in developed areas. Fanaka is more about the value of the product and that’s where we come in. So far, the company has undertaken 10 projects and completed them successfully to the satisfaction of the clients. Other ongoing projects include the Palm Gardens, Sunset View Gardens at Joska, Kamulu Gardens, and Plains View Gardens. With about half a million people moving to urban areas every year, the demand for
land in Nairobi is expected to continue growing, and Muriithi believes this is a major opportunity.
Flexible payment plans Fanaka offers both cash and installment modes of payment. For the installment plan, clients are required to pay a deposit of 50 percent of the value of the project, and clear the rest within six months. In case of cash payments, clients are given a discount of 4 per cent.
Our happiness is when we complete our projects and all the customers are satisfied, when we go back there and find some of them developing their parcels of land
“We are however very flexible, and are able to adjust accordingly depending with clients’ needs. At the end of the day, we want people to own property.”
Price includes legal fees, stamp duty and title deed. By ensuring that every plot has a title deed, is a 100 per cent money back guarantee that the real estate company is selling genuine property. This is unlike other players in the industry who sell property, but take a long time before delivering title deeds. Why Fanaka? Muriithi says their uniqueness lies on documentation and location of the plots. “We basically select the best plots for our clients, besides ensuring that all of them have ready title deeds.”
As aforementioned, the company’s land is located within close proximity to Nairobi, in developed areas with water and electricity, and near the tarmac roads. The projects are also in a gated setup. www.destinafrica.co.ke
Destin Africa 26 Cover Story
Palm Gardens
The plots are also affordable, going for as low as Sh 550,000 for an eighth-acre. “Our happiness is when we complete our projects and all the customers are satisfied, when we go back there and find some of them developing their parcels of land,� offers Muriithi. Fanaka has also been able to create employment, currently employing 10 people directly and about 30 indirectly. Despite these achievements, investing in the real estate sector is capital intensive, in addition to experiencing stiff competition from various providers. Muriithi however feels that as long as you have the right product that sets you apart from others, you will eventually penetrate. He urges the national government to partner with county governments on affordable housing by providing the necessary amenities in all areas surround urban areas.
To the young people, the managing director advises them to work on something that they are passionate about; business is not always about money! He believes- go for success and money will follow you. www.destinafrica.co.ke
Plains View Gardens
27 Destin Africa
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Destin Africa 28 Ride Hailing
Taxify Rebrands to Bolt as it Seeks to Solve Transportation Problems
The leading European on-demand transportation platform was launched five years ago with a mission to make urban transportation more convenient and affordable By Jennifer Nyawira
T
axify, the Estonian ride-hailing company recently rebranded to Bolt as it seeks to bring the brand identity in line with the company’s broader vision of transportation that has expanded over the last few years.
“Our new name ‘Bolt’ stands for fast, speed and efficiency, and that’s one of our basic goals in solving the transportation problems,” says Shivachi Muleji, Bolt’s General Manager for East Africa. This is exactly what the experience of getting around in a city should be, be it by car, scooter or public transport. Bolt also gives the sense of electricity, of something fast and efficient. Commenting on this, Shivachi says the future of transportation will be electric. Bolt users will not need to take any action as the app will update automatically. The functionality and ease of use however remains the same. Initially, the ride-hailing company started with taxi dispatch solution in different cities across the globe with the objective to
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make transportation more convenient and affordable.
Today however, Bolt has grown in leaps and bounds to become the leading provider in the markets it serves.
“Over the past five years, we have seen growth across different countries and continents. Today, we are in more than 100 cities in more than 30 countries globally,” says Shivachi. The suit of products has also expanded quite significantly from ride-hailing, with cars and motorbikes, Tuktuks in Tanzania to scooter sharing in Western Europe.
The managing director says the growth and change of name came very naturally since Taxify denotes only vehicles, but it has expanded beyond that. Bolt however remains an independent company, focused on its riders and on providing the best service that is affordable and reliable.
Why Bolt? According to the managing director, there are many factors
that set Bolt apart from other providers in the industry. To start with is our affordability, which does not come with the expense of the driver. “We are affordable because our commission is lower than anybody else in the market,” he reveals, adding that, “The Company only takes 15 percent commission allowing riders to take home sensible income.” Secondly is Bolt’s focus on safety. In this regard, it is always building solutions to ensure customer safety. In 2018 for instance, it installed and SOS button within the driver application, which plays
a major role in case they get into an unsafe circumstance. “By pressing on the button, a security team, an ambulance or a rescue team is dispatched within 5-10 minutes depending with the nature of the circumstance. The leading European ondemand transportation platform also works very closely with law enforcers, and urges people to report any safety cases to the police. Milestones Bolt has grown rapidly over the last five years. Shivachi reveals 15 months ago, it
29 Destin Africa Ride Hailing
was only in Nairobi, and had a team of about 10 people. Today however, the ride-hailing company has expanded its product range from one to about seven including Bolt Go and Bolt XL. It has also expanded its presence to Mombasa, as well as its regional footprint to Uganda and Tanzania.
“Generally, we think of East Africa as a place of full potential, and we believe there is a lot more we can do to solve transportation problems in the region.” Electric scooters Shivachi notes that every region has its own innovations that make sense. For instance, bodabodas are considered the scooters of East Africa as they are fast, efficient and affordable. Electric scooters on the other hand make sense for the European market and the company is currently working on expanding the scooter sharing service across a number of European cities.
However, the theme of electric feature could impact East Africa without going to the line of electric vehicles and scooters. For instance, there are innovations coming out of Rwanda such as electric bikes, and this makes sense for the market. “We will continue looking for these kinds of partnerships to make the cost of moving around fast and efficient.” Experience According to the managing director, East Africa is an amazing place to operate in, despite there being many
challenges that need to be addressed.
When ride hailing came to East Africa, the narrative was that it was here to replace the tradition taxis. But now we see a more open regulatory landscape. Regulators and stakeholders are more open to having conversations with ride hailing companies. That’s a good thing because it sets the stage for more healthy innovations. The hurdle with stakeholders and the government has so far been crossed.
Currently, we are at a stage where people are willing to have discussions about how ride-hailing impact transportation, and how it helps to solve problems? From a market perspective, East Africa has a lot of transportation challenges, and there is a lot that needs to be done especially infrastructure-wise. Four years ago for instance, Nairobi had four million people, and the number has increased to six million today. The pace of infrastructural growth does not match the growth of the cities. Ride hailing therefore becomes a necessary solution in this market. We think of ourselves as fitting within the ecosystem of solutions. Going forward, Bolt plans to remain committed to its core principles, its customers, as well as to the markets it operates in since there is a lot of potential. “We are happy to be in East Africa because it is a big market, and in our own small way, we will continue to help solve the transportation problems in the region,” concludes Shivachi.
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Destin Africa 30 Affordable Housing
Wall Street Financier Tackles Affordable Housing
F
rom Wall Street to building hundreds of thousands of homes in Africa, Anders Lindquist is deploying Swedish Tech and decades of high stakes financing to addressing the challenge of affordable housing.
EchoStone Nigeria community construction site.
As one of several high-profile international speakers at the East Africa Property Investment (EAPI) Summit on 10 & 11 April, Lindquist is the Co-founder of EchoStone Housing, an international developer seeking opportunities in East Africa. “As a pioneer in their field, with a proven method of funding and unique technology, EchoStone represents a new class of developers and investors entering the regional market,” says EAPI’s host Kfir Rusin. Adding that, “The Pan-African real estate investment landscape is shifting and we are witnessing growing private and institutional investment appetite for affordable housing, a case in point is Actis’, one of the world’s most significant emerging market private equity investors, recently announced multibillion-shilling deal.”
EchoStone’s business model is built on the establishment of a Joint Venture (JV) with a local and experienced developer, which then engages the State via the Public Private Partnership framework.
Currently, the firm is earmarked to develop more than 200,000 homes in Lagos, Nigeria www.destinafrica.co.ke
and came to regional attention after they delivered a two-bedroom flat in just 14 days in 2018 from scratch.
While the timeline is impressive, Lindquist highlight’s that formula driven approach, tech and people enables the firm to develop at a truly massive and exponential scale.
“We use a specific formula for rapid development of communities, and for example, if we placed nine machines, 96 sets of forms and 1,500 people on site, we could develop up to 330 homes of 64m2 size every two weeks.” The ability to develop rapidly is a byproduct of years of experience and
31 Destin Africa Affordable Housing
Anders Lindquist, Co-founder EchoStone Housing.
investing millions of dollars in specialised tech, comments Lindquist. “Our tech and computerised concrete factory, enables us to build 65m (high) and 200m (wide) units,” explains Lindquist.
In comparison to existing building methodology, EcoStone’s assembly line approach is reminiscent of one of Sweden’s most high-profile tech exports, Volvo. Like the automotive icon famed for its design and safety standards, EchoStone’s designs are aesthetically pleasing, dignified, sustainable and resilient.
As a socially conscious and pioneering global firm focused on solving one of the world’s biggest challenges, EchoStone’s model prioritises sustainability and partnership between the public and private sectors. “This sustainable driven approach is vital as it provides an opportunity for all participating stakeholders to leverage their core strengths in the value chain and stimulate economic growth,” adds Lindquist.
“Construction is proven to be one of the fastest injections of capital into the local economy, and one home has been proven to create five new jobs according to World Bank estimates.” And while some proponents argue that Africa’s development and infrastructure needs should take priority over sustainability and green design, EAPI’s Rusin believes that building ‘green’ drives
EchoStone Nigeria pouring concrete walls.
value and can unlock sources of alternative funding in the era of the UN’s Sustainable Development Goals (SDGs). “International capital demands have changed, and last year there was an eightfold increase in sustainably driven lending worldwide to $234 BN according to latest figures released by Bloomberg NEF.” Adding that, “In Africa, we are also witnessing the entrance of this new breed of investor and developer motivated to work on projects which will have a transformative effect on community lives, the environment and the economy, says Rusin.
Accredited by the World Bank’s IFC Excellence in Design for Greater Efficiencies (EDGE) certification, and with a proven ability to scale rapidly and fun, “EchoStone’s approach is winning plaudits from key decision makers and international development financing firms,” says Lindquist. “EchoStone is uniquely positioned to bridge the affordability gap by building sustainably.” For Lindquist, the solution to funding in an emerging market and new asset class lies in EchoStone’s “blended finance” approach. Explaining that, “We invest our resources
into Joint Venture (JV) entities, with capital typically supplemented by local partners. This investment acts as a catalyst to start and initially sustain operations.”
Explaining that, “Our blended financing approach enables us to invest in our own projects, complemented by public private partnerships. For example, the Family Homes Funds (FHF) entity under the Nigeria Ministry of Finance provides construction loans to developers and supports home buyers with home loan assistance programmes. Combining our internal investments with financing schemes through government programmes and international development institutions supports our development operations and buyer offtake, which in turn supports a streamlined and affordable housing ecosystem in the Nigerian Market.” “As one of 60 + speakers confirmed for this year’s EAPI Summit, Lindquist’s ideas and solution-oriented approach is certain to generate considerable interest within regional leaders in both the public and private sectors,” says Rusin. “EchoStone is an emerging pioneer with a proven model across the value chain and global experience, but who are also eager to work in the Kenyan and East African market.”
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Destin Africa 32
Real Estate
By Samuel Kariuki
East African Real Estate Investors Discover the Working Class
T
he last 20 years of real estate boom in East Africa has changed our building landscape and inventory, as it quite rightly should have done.
Our starting point was a region that was short of every kind of building, from housing, to shops, through offices, warehouses, hotels, and even student hostels. In all, we faced a real estate landscape that was cripplingly underinvested. And we invested.
Choosing which type of investment barely mattered. Every type of property sold fast. Developments got snatched up even before the building bricks were laid, simply because the market had little to offer. We are no longer in that situation. But confusing our sector’s move to maturity with the end of real estate investment opportunities is a mistake. For, in our first years of heavy real estate investment, we concentrated primarily in high-end assets, because we all believed they delivered higher margins and higher returns. In fact, that is no longer the case, and may never have been the case. But, nonetheless, when we were short of everything, we began with expensive buildings.
We built estates of detached houses and town houses, high end rental apartments, shopping malls, often huge ones, and towering office blocks. Until in some areas, and for the highend market, we began to reach market saturation. As a result, an investor now putting up Sh100m worth of penthouses,
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33 Destin Africa Real Estate
When we look at the needs of the country’s working classes, market researchers have reported demand for two million units
unless they are building for a specific unmet need, would be lucky to fill it in four years. Yet only a tiny proportion of Kenyans live in high-end neighbourhoods. When we look at the needs of the country’s working classes, market researchers have reported demand for two million units. Of this, over two thirds are for earners who can afford rent of Sh18,000 to Sh50,000 a month.
Today, I cannot easily pinpoint any stock that is coming to the market for this segment, certainly not to the scale that responds to this opportunity. Instead, investment in this type of property has been left to unsophisticated investors, in what is largely a landlord market delivering developments found in the more densely populated Nairobi estates. The buildings are unplanned and noncompliant with construction standards, as developers seek to lower construction costs and complete projects more quickly to increase returns.
However, a huge opportunity exists for a better quality of real estate in this segment. Moreover, while the perception that rental yields in high- end areas are higher has driven investors and developers to areas such as Kilimani and Lavington, research has shown that yields are actually higher in the mid-market areas.
For instance, the average rental yields in 2016 in the mid-market were 6.5 per cent, compared with 6.3 per cent for high-end apartments. That premium in the midmarket has continued. In 2018, mid-market rental yields ran at 5.4 per cent, compared
to high-end yields at 5.3 per cent. Moreover, demand is abundant.
Thus, if the NSSF were to put up an estate such as the organized Nyayo Estate in Embakasi, it would not struggle with tenancy, as tenants look for quality stock that is currently close to nonexistent.
Such estates offer almost the same amenities as homes in Kilimani, across modern, 24-hour security systems with professional security personnel, ample parking space, borehole water to cover for water shortages, and maintenance services, but at far lower rents. Similarly, for developers building commercial properties such as stalls or retail centres, as opposed to large malls, occupancy will never be their biggest challenge as they attract SMEs and private businesses dealing with the routine needs of Kenyan consumers. In sum, the investment opportunities in real estate remain enormous. But now it is the turn of the working classes. And the returns are just as high for investors.
It’s a challenge we welcome, with the region’s annual investor conference, the East Africa Property Investment summit, set to be the largest yet and a key platform for developing real estate policy and white papers for government.
In this, our own compass is clearly set. We do not face a depressed real estate industry. We face the next opportunity, and it is far larger than the last one. The writer is the Managing Director at Centum Real Estate
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Destin Africa 34 Hospitality
By Hasnain Noorani
Responsible Tourism Can Contribute in Eliminating Single Use Plastics Hazard
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esponsible Tourism calls for hoteliers to abandon single use plastics within their establishments. This noble move could to a larger extent pivot Kenya to a high rank in the attainment of the globally accepted Sustainable Development Goals (SDGs) by the year 2030.
Plastic pollution is impacting our waters and marine life, as well as our food chain and the public health at large. Every single day, the equivalent of a truckload of plastic enters into our oceans. In the name of profit and convenience, single use plastic manufacturers are literally choking our planet with a substance that does not just “go away� when tossed into a bin.
Since the 1950s, some 8.3bn tons of plastic have been produced worldwide and to date, less than 10% of that has been recycled. Our oceans bear the brunt of our plastics epidemic up to 12.7m tons of plastic end up in them every year. Continued expansion of tourism and hospitality business along the beach line has come at a cost to the marine environment.
Stakeholders in tourism and hospitality industry must therefore be in the forefront in addressing the declining health of marine ecosystem to ensure the long-term sustainability of its economy. Nations have in deed rallied around the mammoth pressures facing our oceans and waters, from plastic pollution to the impacts of climate change. At the same time, there is global recognition that we need to develop our
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35 Destin Africa Hospitality
waters in an inclusive and sustainable manner for the benefit of all.
Excessive waste and in particular plastic have been much in the news lately, prompting a growing number of hotels and resorts at the Kenyan coast to take steps to eliminate single use plastic items case in point the PrideInn Group of Hotels. This has been in the quest of achieving a sense of responsible tourism which formed part of the Blue Economy Conference held in Nairobi late last year.
Tourism and hospitality industry has a huge environmental impact – from the millions of miles delegates have flown to attend events to the reams of paper squeezed into bulging delegate bags and the kilowatts of energy used to light exhibitions and displays around the world. Now green culture is taking hold and hospitality stakeholders are thinking carefully about environmental impacts, becoming keen to show their sustainability credentials.
Plastic waste has remained to be one of the biggest threats to the world’s oceans. In fact, according to United Nations Environment Programme (UNEP), more than 8 million tonnes of plastic leak into the ocean each year, this is equivalent to dumping a garbage truck of plastic every minute.
Plastic waste harms marine ecosystems and causes adverse impacts to human health. Responsible tourism should aim at addressing these plastic issues.
Holiday makers’ image of environmentally sustainable accommodation has tended to encompass luxurious eco-lodges, those little cards that encourage you to reuse your towels and bedding in hotel rooms and not much in between.
For Tourism and hospitality industry, it is very essential to protect our environment i.e. Environmental Sustainability. So we can automatically sustain the hotel industry.
Stopping plastics getting into the oceans in the first place will require a huge change in consumer behavior and product design
The hotel industry is correctly managed in protected areas, and it can become an effective instrument and an economic resource towards conservation. The main factors affecting an organization in its effort to improve its market share involve hoteliers, consumers and employees in ways that contribute to an ecofriendly environment.
Stopping plastics getting into the oceans in the first place will require a huge change in consumer behavior and product design — fueled by a global commitment by governments and business to phase out non-essential single-use plastics, particularly for packaging and make it easier to recycle remaining plastic waste. Responsible tourism should aim at addressing what businesses and governments as well as individual holiday makers can do to minimize the negative impacts of tourism, while maximizing the positives. A key element is the breadth of issues it considers: not just the environmental effects, but also economic, social and cultural outcomes.
The writer is the Managing Director and Founder of PrideInn Group of Hotels www.destinafrica.co.ke
Destin Africa 36 Cloud Computing
By Andrew Sordam
Cloud Computing Unlocking Rapid Innovation in Africa
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frica is a continent pulsating with energy and this carries over from its beautiful cultures to business and innovation. Digitalisation is permeating every industry, with cloud computing rapidly becoming an essential component of business transformation. Powered by the energy so infused on the continent, there is a focus on consolidation and persistence as organisations drive digital transformation forward and improve the quality of ICT services. The speed of development in each region of sub-Saharan Africa is astounding. Oracle has been present in Africa for the last thirty years and has been investing heavily in the continent from the very beginning. We believe in investing in the human capital of the countries where we do business in order to address the growing ICT skills gap.
This places Oracle in an exciting position. We are able to contribute meaningfully towards the roadmaps of innovation and transformation. Organisations across the continent are embarking on innovative digital transformation initiatives which is incredibly exciting, being able to participate in projects that are driving the continent forward in ways we can only imagine.
ICT is a large contributor to African society, with mobile connectivity enabling many enterprises to reach their customers like never before. Mobile and digital capabilities have given companies across the board new tactical strategies, such as fintechs using artificial intelligence (AI) and machine learning to get a leg-up on traditional banks. www.destinafrica.co.ke
37 Destin Africa Cloud Computing
Companies in Africa can emerge from a situation where they have had more rudimentary applications and business processes to where they have unleashed the power of cloud technologies which makes it easier and far more efficient to automate services.
According to the IDC, overall spending on ICT in the Middle East, Turkey, and Africa (META) is set to grow 2.5% year on year in 2019 to reach $213 billion. Group vice president and regional managing director for the META region, Jyoti Lalchandani, adds that progressively more organisations experiment with emerging technologies such as AI and the Internet of Things to drive innovation and improve their customer experience. He says that the most important task facing the region’s decision makers is the development of an effective
digital transformation platform that can sustain and scale business operations. CEOs and CIOs on the continent have the cloud at the centre of their digital transformation strategies, knowing full well that without automation they will either be out of business, or be steering an organisation with flawed reporting. The ability to harvest, store and sort big data is a critical element of business competitiveness.
Business leaders are seeing first-hand how the cloud is an enabler for innovation. Although we are progressively seeing an increase in movement to the cloud, a smart bet would be on many organisations going the route of cloud at customer. Oracle Cloud at Customer is designed to enable organisations to remove one of the biggest obstacles to cloud adoption—data privacy concerns related to where the data is stored. In our experience, while organisations are eager to move their enterprise workloads to the public cloud, many have been constrained by business, legislative and regulatory requirements that have prevented them from being able to adopt the technology. Oracle Cloud at Customer provides organisations with choice regarding where their data and applications reside and a natural path to eventually, and easily, move business critical applications to the public cloud. On the continent there is no illusion about the importance of putting in place foundational infrastructure, and various industries are consolidating in order to tap into the power of automation, AI, machine learning and more. A traditional brick-and-mortar operation can transform into a customer-focussed, smart, reactive, relevant enterprise.
The Kenya Revenue Authority (KRA) partnered with Oracle in order to solve problems that had hampered the country’s revenue collection. A cumbersome and painful tax filing system meant the compliance rate was terribly low. The KRA’s vision is commitment to the concept of customer centricity. The implementation and rollout of iTax powered by Oracle Service Cloud, Policy Automation, Social Cloud and Marketing Cloud has brought the authority that much closer to achieving
this. The end result is collecting more revenue to drive the development of the country, while also empowering its staff to serve customers in a digital era.
Digital transformation has meant there needs to be a coordinated approach to addressing the skills shortage as well as the risks that technological disruption is causing, such as cyber security. We have put in place numerous initiatives to help address this challenge, with programmes across sub-Saharan Africa, including Kenya, Nigeria, South Africa and more.
In 2017, Oracle Academy and The Global Peace Foundation of Kenya signed an agreement that will allow our academy to support 24 public high schools in Kenya. As part of this, Oracle will train 180 teachers over three years to start teaching our Oracle Academy Java and Database courses. Driving the focus towards closing the skills gap is vital for big technology companies such as Oracle. A similar example is found in Nigeria, where Oracle Academy has announced a partnership with the Federal Ministry of Education in that country, where the ministry will introduce our Oracle Academy computer science curriculum across 10,000 academic institutions, reaching 1,5-million students. To complement this, the Academy will facilitate the upskilling of 4,000 educators. In South Africa, our Oracle Graduate Leadership Programme, launched in 2014, helps youth develop specialised IT skills required to succeed in the fourth industrial revolution. The programme has delivered eighty-four graduates to date and creates a future skills pipeline for our company and our partner community in the region.
There must be action behind rhetoric. Companies must put their visions and strategy into action and together we will unleash the immense potential of this continent. There used to be a saying about dreamers: “their head is in the clouds”. How appropriate that the dream of a technologically competitive Africa, which is unfolding at a rapid pace and is not fantasy but proven reality, also resides in the cloud. The writer is the Vice President for subSaharan Africa at Oracle
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Destin Africa 38 Agribusiness
By Gilbert Kirui
T
he choice and correct use of a planter are key elements in achieving the right plant population and consequently a good crop. If you are buying a planter it is important to consider the size of your farm. The initial purchase price is a priority, but you also need to consider your expenditure over the next few years on spares, servicing and repairs. Like all machinery, after the purchase, the after sales support and availability of the spare parts a key consideration to make.
The output of your planter should be sufficient for you to take full advantage of the planting window in your area which is dependent on the size of land and the likely duration of rainy seasons. When selecting the planter also consider other operations that will be carried out on the farm and to the crop before harvest e.g. irrigation and pest control equipment movement into your fields.
The farmer must also decide if his farm will be running on controlled traffic or not. This will in many ways affect how the operations are carried out and demarcation of traffic and non traffic areas. By using the setting the planter spacing correctly, tasks such as crop spraying can be carried out with the minimum damage to crops. www.destinafrica.co.ke
How to Get the Best Results from a Planter
39 Destin Africa Agribusiness
The output of your planter should be sufficient for you to take full advantage of the planting window in your area which is dependent on the size of land and the likely duration of rainy seasons
Taking care of a planter Bearing in mind that a planter represents a significant investment it is important that you take great care of your equipment. If possible, store your planter under a roof. When not in use, remove the rubber hoses, grease and cover the chains. The life of all equipment is extended by correct lubrication and planters are no exception. Accordingly, you should make sure that you lubricate all chains and bearings thoroughly. Rust preventive paint should be applied to the clean disc opener and coulters. Plastic hoppers should not be left in the sun for long periods as they deteriorate fast.
Tasks to be carried out immediately before planting Checking the condition of your equipment on a regular basis and replacing all worn out parts will ensure that your planter will be reliable, and you will not suffer problems caused by break downs.
The adjustment, of disc openers or replacement of those worn out ensures that the furrow will give you accurate seed positioning and firming. Remember worn openers will create a W shaped furrow instead of the V shape which you require for best results.
Another cause of reduced seeding accuracy is the inefficient operation of planter chains which are worn, or have rusty and are stiff chain links. This is cured by wire brushing and greasing the chains. To prevent the problem occurring ensure correct lubrication at the end of the planting season and keeping the chains covered away from dust and debris. Ensure that coulters and disc openers are correctly aligned to give accurate furrow opening and seed placement.
Make sure that the tyres are inflated to the correct pressure because under, or over inflated tyres influence the accuracy of transmission settings for the seed drop. Seed tubes and monitor sensors should be cleaned to avoid interference with the accuracy of the sensors.
With finger pick- up type planters the back plates should be clear of rust build up and seed treatment residues.
Tension on the fingers should be checked and adjusted because badly adjusted finger pressure affects the ability of the unit to accurately cingulate seeds. The writer is the Technical Manager, FMD East Africa, the Massey Ferguson distributors
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Destin Africa 40 Human Resource
The Traditional CV is dying - Employers are Leveraging New Technology to Find Ideal Candidates Increasingly Millennials are moving away from having physical CVs, and instead, are opting to store their data in a digital profile
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n the next three years, top HR executives and employers have asserted that the biggest impact on recruitment will be Technology Augmenting the Hiring Process.
In other words, how technology will make the hiring process more effective through easier filtering and more accurate matching.
This discovery, along with other invaluable insights into the evolution of the job market has been pioneered through in-depth research conducted by ROAM (Ringier One Africa Media). ROAM encompasses the market-leading job portals in West Africa (Jobberman) and East Africa (BrighterMonday), as well as Executive recruitment and HR solutions firm, The African Talent Company. The company periodically surveys over 50,000 employers who use their services, to understand how employers see the hiring space and how ROAM’s brands can support the changes. Matthew Page, ROAM’s Head of Jobs, credits a strong shift in the behavioral patterns amongst Millennial job-seekers as the main driver behind piloting research to better understand the trends. He says: “As advocates for the use and power of technology in the hiring space, we are pleased to see technology is on top of the HR agenda. It aligns with our vision to transform productivity on the www.destinafrica.co.ke
41 Destin Africa Human Resource
As more candidates embrace digital profiles, it is imperative employers leverage the sourcing technology available or risk missing out on ideal applicants
African continent. We’re seeing some pretty incredible trends coming out of our millennial users. Firstly, the growth in job activity is massive over the last 3 years. It differs by market, but some countries are seeing as much as 50% of the workforce being made up of millennials - these users are actively searching and enquiring about opportunities. More than any other demographic we have seen before.”
The company’s research further brought to light that increasingly Millennials are moving away from having physical CVs, and instead, are opting to store their data in a digital profile via the Jobberman web portal in West Africa and the BrighterMonday portal in East Africa respectively. “This is convenient”, says Page. “Job Seekers - and especially millennials - are mobile-centric. They are hungry for the right job and they are looking for an easier to use, digital application processes. Sending a CV over email or via post is slow, arduous and inefficient.”
This aligns with the trends ROAM has uncovered on employer beliefs for augmentative hiring processes. Page goes on to say: “Having structured data in a digital profile is good for the employer and the seeker. The data is in the cloud, is easily edited and allows for a seamless desktop to mobile experience. For employers, filtering through 100 CVs in hardcopy is a nightmare task. Being able to match profiles to role requirements with technology takes out the manual element and allows for focus on what really matters - the top matching candidates.”
Clemens Weitz, CEO of ROAM, doubles down on the potential for growth in African productivity: “In the future, hiring decisions will be vastly improved through technology. The hard copy CV as the main instrument for candidate selection is a 20th-century practice that our generation will be the last to see. For both candidates and hiring managers, there are tremendous positives ahead. As more candidates embrace digital profiles, it is imperative employers leverage the sourcing technology available or risk missing out on ideal applicants.” www.destinafrica.co.ke
Destin Africa 42 Health & Fitness
By Dr Johnstone Miheso
Understanding Kidney Stones Disease And How it Presents
T
he kidneys are vital organs whose main functions are to filter waste from the blood, create urine, balance water levels, regulate blood pressure and aids in other important functions of the body. Kidney stones are hard deposits made of different minerals and salt that form inside your kidneys. Stones form when the urine becomes concentrated, allowing minerals to crystallize and stick together within the inner lining of the kidneys, the ureter or the bladder. The stones may be as small as a grain of sand and pass unnoticed through the urinary tract. Others may grow and become large enough to occupy the kidney. The stones cause no permanent damage with timely patient diagnosis. Other symptoms include frequent, or painful urination, blood in the urine, nausea and vomiting. These signs can also be associated with other abdominal conditions hence kidney stones are rarely diagnosed until they begin causing extreme pain. The stones could either be calcium stone which is the most common type among men and women whose risk can be reduced by eating fewer foods rich in calcium-oxalate such as potato chips, peanuts, chocolate among others. Uric acid stones are more common in men than women affecting those with gout, or undergoing chemotherapy. Struvite (crystals of magnesium ammonium phosphate) stones are
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43 Destin Africa Health & Fitness
The treatment for a kidney stone depends on the size of the stone, the composition, the level of pain, or blockage of the urinary tract
commonly found in women with urinary tract infection. The stones are usually large in size causing urinary obstruction. Treating the infection helps in the reduction of stone formation. The rarest type is the cystine stone which occurs in both males and females.
Some of the risk factors include family history which escalates the chances of one developing the stones, a previous kidney stone occurrence increases the chances that a person will develop subsequent stones in the future if preventative action is not taken. It is possible that the long-term use of vitamin D and calcium supplements can cause high calcium levels, which can contribute to kidney stones. Diets high in protein and sodium, but low in calcium are another additional risk factor contributing to the formation of some type of stones.
The treatment for a kidney stone depends on the size of the stone, the composition, the level of pain, or blockage of the urinary tract. To answer these questions and to figure out the right treatment for you, your doctor might ask you to have a urine test, blood test, x-ray, or CT scan for accurate diagnosis.
If your test results show that your kidney stone is small, pain medication and muscle relaxants will be administered while drinking plenty of fluids to help push the stone through your urinary tract. If your kidney stone is large, or blocking your urinary tract shock wave treatment will be administered under general anaesthesia to break the stones into smaller pieces which will pass out with urine. In rare cases, surgery is needed to remove a kidney stone when causing an obstruction and infection, or is damaging the kidneys. During the surgery, a tube will be inserted directly into your kidney to remove the stone through a small incision in your back. The writer is Consultant Urogynaecologist at Aga Khan University hospital, Nairobi
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GREAT DRIVE
Motor
NEW MERCEDES BENZ C-CLASS LUXURY SALOON ARRIVES IN KENYA www.destinafrica.co.ke
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he first of the new Mercedes Benz C Class luxury saloons will arrive in Kenya in March. This is the best-selling model in the Mercedes line up and the latest version takes the car to an even higher level with a selection of completely new petrol engines for Kenya.
The appearance has been changed and features modified bumpers, radiator grill and state of the art head lamps and tail lights. The electronic architecture is completely new and gives the customer a user experience with assistance systems which take the car to the same level as the S-Class. Owners will also have an optional fully digital instrument display and multimedia systems with tailor made information and music. A customer ordering a new C-Class has a wide choice of options including a driver assistance package featuring distance control, steering assist and support for the driver to keep a safe distance from other vehicles. Speed is now adjusted automatically ahead of bends, junctions and traffic islands.
A fully digital instrument display is available as an option which comprises a 24 centimetre high resolution cluster with cutting edge screen design. Buyers can also choose an energizing convenience adjustment which systematically uses the functions of climate control, seats with heater, ventilation and massage capability and lighting and musical moods. As with the S-Class there is a multicontour seat package which gives individual adjustment by an electrically driven pneumatic pump for the side bolsters and massage in the lumber area. The sum total of the electronics brings the C-Class to the level of the S-Class.
45 Destin Africa
Luxury Features COMAND® Navigation
The COMAND® system with 10.25-inch high-definition color screen shows you three-dimensional maps with overlays and turn-by-turn navigation to give you the kind of confidence in your drive that’s at the heart and soul of luxury.
Comfort Seating with Memory
Whether you’re driving or being driven in your 2019 Mercedes-Benz C-Class, you’ll enjoy memory seating that adjusts to your specifics with the touch of a button. Adjustable thigh-support and heating/ cooling make it even more comfortable.
Active Lane Change Assist
Changing lanes has never been more relaxed. With Mercedes-Benz Active Lane Change Assist, simply engage your turn signal, wait a few seconds until a spot is clear and watch as your 2019 MercedesBenz C-Class precisely steers into the next lane.
If you’re looking to get the most out of your drive, the 2019 Mercedes-Benz C-Class is here to rescue you from uncomfortable miles you might experience in a car designed with less thoughtfulness. Whether it’s the gigantic COMAND® navigation screen, the luxuriouslyappointed comfort seating with memory or the DISTRONIC® driver assist features like Active Lane Change Assist, you’ll find technology and craft to be at their zenith in the 2019 Mercedes-Benz C-Class. www.destinafrica.co.ke
Destin Africa 46
TRAVELWISE
Air France Set to Increase Weekly Flights to Nairobi The French national carrier is set to launch two additional weekly flights to Nairobi beginning next month
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he increased flights between Charles de Gaulle Airport and Jomo Kenyatta International Airport is part of the airline’s strategy to expand its African network.
Last year, the French national carrier resumed flights to Nairobi after an eighteen-year hiatus and this month marks its first anniversary since resuming the route. The move is set to benefit French and Kenyan companies especially in horticulture, pharmaceuticals and other businesses that depend on air transport.
“We will be increasing our flights on the Paris-Nairobi route to five flights a week and we are confident that we will continue this growth in the coming years,” said Arthur Dieffenthaler, Air France General Manager for Eastern Africa region. He was speaking during an event that brought together French companies in Kenya, organized by the French Chamber of Commerce ahead of the state visit to Kenya by the French President, Emmanuel Macron.
He added that following resumption of flights to Nairobi, the airline has seen increased demand attributable to growing www.destinafrica.co.ke
trade between Kenya and France. The latter also ranks among Kenya’s most significant tourism markets. “Immediately we resumed flights on the Paris-Nairobi route, we recorded higher bookings with our partner Kenya Airways. Our return to this market signifies the confidence we have in strengthened ties between Kenya and France,” explained Dieffenthaler. The move will also benefit French and Kenyan companies especially in horticulture, pharmaceuticals and other businesses that depend on air transport.
Air France will operate the latest generation aircraft on the route Boeing 787- 9 equipped with the state-of-the-art cabin features to ensure a superior customer experience. Air France also entered into a joint venture partnership with Kenya Airways (KQ) in 2018. The two airlines will jointly operate 12 flights a week on the Nairobi-Paris route. Air France also operates a cargo flight into Kenya.
“Our partnership with KQ has been mutually fruitful with demand growing and also from exchange of aviation knowledge on the European and African markets,” concluded Dieffenthaler.
Destin Africa
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PLOTS FOR SALE
Accessible And Ready to Build Projects PALM GARDENS
PLAINS VIEW GARDENS
KSHS. 550,000 • Plains view Gardens Plots by Fanaka Real Estate are located in Malaa area 45 minutes drive from Nairobi CBD. • The project comprises of 50 by 100 plots located exactly 3.5km Off Kangundo Road. They are accessible through an all weather road from Tarmac. • Social amenities in the area include; Water and Electricity. Price starts from Ksh 550,000/- with various payment plans. • A 4% Discount is offered to Cash Buyers while installment clients pay a 50% deposit and the balance paid within 6 months. 0799 174070 / 0799 000111 info@fanaka.co.ke www.destinafrica.co.ke
KSHS. 800,000 • Palm Gardens Plots by Fanaka Real Estate are located in Malaa town 45 minutes drive from Nairobi CBD. • The project comprises of 50 by 100 plots located exactly 1km Off Kangundo Road. They are accessible through an all weather road from Tarmac. • Social amenities in the area include; Water and Electricity. • Price starts from Ksh 800,000/- with various payment plans. • A 4% Discount is offered to Cash Buyers while installment clients pay a 50% deposit and the balance paid within 6 months. Ruai Town Branch (Head Office) Dune House, Ground Floor, Suite D1.
Visit our website for more projects www.fanaka.co.ke
