Kshs. 300 / Ushs. 9000 Tshs. 6000 / RWF. 2200 ISSUE 17 / 2018
INSIDE
SURF KENYA AIMING TO OFFER QUALITY AND AFFORDABLE INTERNET MARK SUMMER,CHIEF EXECUTIVE OFFICER,SURF KENYA.
MASTERCARD A WORLD BEYOND CASH MTN BUSINESS KENYA ENHANCING YOUR BUSINESS THROUGH ICT TOP 5 WAYS TO BOOST YOUR CAREER
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Editor’s note
Facing 2018 with Positivity and Action
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here is no doubt that 2017 had its fair share of joy and challenges. It was a year of politicking in Kenya that affected every aspect of the economy. Jobs were lost, security deteriorated, businesses closed down while others lost money, the shilling came under heavy pressure, while the country almost plunged into a deep crisis. The political turmoil is over, or so we think. In spite of everything, the economic outlook remains bright. Businesses, large or small, must take on the year with fierce optimism. Above all, it is through their actions that the future is better. Business must re-evaluate their strategies, go digital and adopt a go-to marketing strategy. They must also remain focused, be smart and differentiate to remain ahead of their competitors. Most remarkably, business must think ahead and adapt to change in the current rapidly changing business environment. They must for instance embrace technology, which has currently changed how things are done, and learn to live with uncertainty. Let’s therefore remain optimistic and work towards achieving our goals.
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Contents 24.
Cover Story
5. EDITORS NOTE 10. GET INSPIRED 12. BRIEFS
20.
14. FINANCE Mentor Sacco Banks on its rich history and innovation to empower members
16. TECHNOLOGY MTN Business Kenya-enhancing your business through ICT
18. INSPIRING WOMAN
18. YOUNGPRENUER
This Start-Up is Kenya’s first online tendering portal
Wilkings Fadhili, Fashion Torch Africa’ founder talks about fashion and his desire to make it big
18.
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Africa 8
Editor-in-Chief : SUSAN ARMSTRONG
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EDITORIAL Features Editor JENIFFER NYAWIRA Features Editor SHABAN AHAB Assistant Editor ALEX NYAMU Digital News Journalist JOE DESIGN & PRODUCTION Art Direction & Design CAITLIN SHARON Graphic Designer PHELIX CONTRIBUTORS Perminus Wainaina Brett Parker Lucy Kiruthu Vincent Muasya 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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Contents 24.
20. SURF KENYA Surf Kenya aiming to offer quality and affordable internet.
22. DIGITAL PAYMENT The sky is the lower limit for MasterCard as they take lead on matters cashless transactions.
24. COMPETITIVE ADVANTAGE TransUnion - optimising competitive advantages for businesses through specialised risk information solutions
26. SKILLS DEVELOPMENT Arc Skills: bridging skills gap through training OPINION
28. HUMAN CAPITAL 30. ENTERPRISES 32. CUSTOMER SERVICE
36.
34. CORPORATE FITNESS Why corporate fitness is important
36. MOTOR BMX X5
42. ART Thebe Magugu
44. TRAVELWISE Travel essentials
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Africa
Get Inspired The Golden Rule of Branding Business leaders share their insights into what makes a memorable brand.
“A BRAND IS A VOICE AND A PRODUCT IS A SOUVENIR.” – LISA GANSKY, ENTREPRENEUR “If your business is not a brand, it is a commodity.” – DONALD TRUMP, US PRESIDENT “YOUR BRAND IS WHAT OTHER PEOPLE SAY ABOUT YOU WHEN YOU’RE NOT IN THE ROOM.” – JEFF BEZOS, FOUNDER OF AMAZON “A brand is no longer what we tell the consumer it is – it is what consumers tell each other it is.” – SCOTT COOK, CO-FOUNDER OF INTUIT
“Making promises and keeping them is a great way to build a brand.” – SETH GODIN, AUTHOR DISRUPT THE INDUSTRY! ENSURE YOUR BRANDING MOMENT HAS THE WOW FACTOR!” – SHELLEY SULLIVAN, FOUNDER AND CEO OF MODELCO “Your personal brand works as your best protection against business factors you can’t control. – DAN SCHAWBEL, AUTHOR
“Brilliant branding is when the sum is greater than its parts. When a brand’s distinctive shape, colour or slogan creates one instantly recognisable and unforgettable impression.” – DORRY KORDAHI, AUTHOR OF WIN BIG RISK SMALL AND MANAGING DIRECTOR OF DKM BLUE
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Africa Briefs
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Prideinn Eyeing To Host Five International Conferences
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ocal hotel chain, PrideInn Group of Hotels is looking to host five international conferences over the next 12 months, affirming its confidence and robust capacity to handle mega meetings. “We are driving strength and focus in bringing more conferences in 2018. As part of our 2018 strategy, we look forward to five international conferences in Mombasa,” said Hasnain.
PrideInn is gearing up to attract international conferences to populate its growing conference facilities at the Coast and in Nairobi and strategically positioning the brand as the stopping point for mega meetings in Kenya. “Local and international corporate brands confidence on our conference and convention offerings shows that we know how things are done and how strong we are in what we do best, conferencing. This has boosted our reputation in the market segment,” added Mr. Noorani.
Kenya is experiencing a steady growth in tourist arrivals for meetings, incentives, conferences and exhibitions (MICE) over the past few years largely driven by strong investor confidence and strategic positioning of Kenya as a gateway to East Africa. Similarly, planned inaugural daily flights from Nairobi to New York and latest ranking of Nairobi as top travelers choice across the globe, the hotel’s management say will boost traffic to local hotels and spur growth in the MICE segment. Nairobi has been voted third best destination on the rise by millions of travelers for being the safari capital of Africa by US travel website, TripAdvisor. Travelers described Nairobi as an energetic modern city that serves as a fascinating introduction to both wildlife and nightlife.
TripAdvisor recently endorsed Nairobi urging holidaymakers to visit the city. It said that the city is safe to walk in and easy modes of transport make other places of interest accessible.
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Africa 14 Finance
Mentor Sacco Banks On Its Rich History And Innovation To Empower Members
Guided by a rich history and proactive membership, the Sacco aims to be the leading financial provider of choice in Kenya and beyond
Humphrey Nga’ng’a, marketing manager, Mentor Sacco.
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Members are encouraged to visit the website and keep their finger on the pulse with the Sacco’s current developments. They can also download, fill, scan and send forms digitally via email.
umphrey Ng’ang’a is the marketing manager of Mentor Sacco and doubles up as the manager of its Ngara branch in Nairobi.
Going forward, he says, the website will soon have a calculator that shows members how much they qualify for and payment schedule, carry internet banking with ease and so forth.
Destin Africa team met him recently at his office to pick his brains on what accounted for the Sacco’s strategic focus going forward.
“We have a mobile banking platform called Quick Cash which has enabled members to access their funds through their mobile wallet. To supplement ATMS, QFS and Coop bank POS, the Sacco is rolling out agency banking. Plans are underway to have our own POS to service our members countrywide conveniently.”
He handles product development and according to him− for any institution to grow−the human resource must be innovate and come up with new products that are customer centric and advised by the market dynamics.
As such understanding, key market metrics are critical for successful product developments. Mentor Sacco has made significant progress in the use of tech to channel products to members, enhance efficiency and convenience in service delivery. “We package products in a way that adds value to members and ensure members are serviced with convenience.”
For instance, the Sacco recently launched an interactive and user friendly website www.mentorsacco.co.ke which intends to market and further distribute products and services to the doorsteps of customers, post news and updates on current developments within the Sacco and other investment opportunities. www.destinafrica.co.ke
We package products in a way that adds value to members and ensure members are serviced with convenience
Mentor Sacco aims to become the leading Sacco in Kenya and beyond by focusing on improved performance, operational efficiency and a stronger capital base. “We have urged members to invest in shares to create good investment opportunity where they earn good returns annually. We pay dividends competitively compared to the prevailing market rates. As such we don’t look for external capital injection.” The road ahead? “We have a great agenda for this nation going forward. We aim to grow our customer asset base and improve accessibility, and be a brand known for its affordability and convenience. We have transformed our members’ lifestyles and empowered them to play important economic roles. We want to extend that to all Kenyans and even beyond border,” he ends.
At Your Fingertips
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www.mentorsacco.co.ke for more information on our innovative products and services, easy banking and our current developments
Tel: 0704 066 827 • 0739 745 220 • 0713 072 137 • 0771 084 440 Wireless: 020- 3580167 Mentor SACCO Society @MentorSaccoLtd Email: info@mentorsacco.co.ke www.destinafrica.co.ke
Africa 16 Technology
MTN Business KenyaEnhancing your Business Through ICT
Connectivity is becoming critical area of concern for any business operation with the tech age. As such MTN provides connectivity solutions that help businesses connect efficiently with their networks. Having recently introduced a USD 13 million tier three Data Center in Nairobi to offer businesses a continuity plan or disaster recovery services on critical business data; Ken Chinganya, the MD of MTN Business in Kenya discusses how the firm aims to be a renowned premium portal for business connectivity solutions.
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ennedy Chinganya ; the current Managing Director for MTN Business in Kenya joined MTN Business in April 2015 as the General Manager Finance for Group Enterprise Business Unit. Tasked to improve governance in the enterprise business across all the company’s operations, his prowess propelled the system and saw him being whisked off to Kenya to head MTN Business Kenya within nine months of service. Kennedy; a South African Citizen of Zambian decent who consider himself a global citizen has worked his entire life in the tech industry for the last 20 years.
Coming from a working background with IBM for 14 years before joining Microsoft Africa for another 5 years, Kennedy who is a certified accountant and a member of The Association of Chartered Certified Accountants (ACCA UK) and South African Institute of Professional Accountants (SAIPA) brought on board expertise in www.destinafrica.co.ke
Kennedy Chinganya, Managing Director, MTN Business in Kenya.
technological connectivity that is the epitome of MTN Business.
“I have found myself spending more time in the business than actually practicing as an accountant,” he remarks.
Asked why this is so, he says he had little control over it but fell in love with running and understanding business analytics over time. “Everything just felt in place. Multinationals I have worked for; the accounting function is mostly outsourced.
So I found myself more concerned about the functionalities of a business than actually the accounting option,” he reveals.
Mobile Telephone Network (MTN) Group is a renowned premium portal for business connectivity solutions which operates in 24 countries in Africa and Middle East. It was formed in 1994 in South Africa dominantly to offer mobile telephone services specializing in voice.
Converged communications Mr. Kennedy says that ICT is a very dynamic industry that has evolved very fast. We used to make calls using Phones with SIM Card but we don’t need SIM Card and phones anymore to make calls. Tech disruptors like Vibe, WhatsApp and Skype among others have made that possible.
“MTN Business is also futuristic. We project future disruptions and aligning our strategies accordingly to help businesses
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Mobile Telephone Network (MTN) Group is a renowned premium portal for business connectivity solutions which operates in 24 countries in Africa and Middle East
We offer businesses a continuity plan or disaster recovery services to businesses. That informed our introduction of a USD 13 million tier three Data Center in Nairobi recently
Businesses no longer need to store their own data as it can be very tedious and risky. The center will allow cloud computing, virtualization and convergence and its features include data security, lower operational cost for companies in the country and immediate access of data.
“I am a tech savvy individual and I have backed all my information on a cloud system. It gives me easy access to my documents from anywhere on the go. I don’t have to worry about misplacing my laptop, surface or phone device.”
The key thing is using ICT to help improve efficiency. optimize their potential. We have close to 450 Kilometres of fiber connectivity in Nairobi, Kisumu, Mombasa and Eldoret.” Connectivity is becoming an enabler for any business operation. As such we have connectivity solutions that helps businesses connect better and efficiently with their networks.
Brand Products MTN Business introduced a communication solution, Voice over Internet Protocol –VoIP that allows business-small or big- to take advantage of fully converge products with competitive pricing structures. With its mobile mobility and Wi-Fi connectivity it signifies a fundamental shift in the way business operates and delivers service. He explains, “If your network already carries your email, business tools and data, why shouldn’t it also carry your telecommunications? Especially when it can save you up to 35 per cent on call cost. Our VoIP solutions enable thousands of concurrent superior-quality voice calls to be managed over a single network and routed to multiple branches.”
VoIP solutions are highly scalable and can be tailored to suit the changing needs of your organization. Cloud computing “Information is the lifeblood of an organization. So what happens if you lose data? It can be injurious to your business. We offer businesses a continuity plan or disaster recovery services to businesses.
That informed our recent investment of USD 13 million which included newly launched tier three Data Center in Nairobi recently,” he avers.
USD 13 million Our recent investment of USD 13 million which included newly launched tier three Data Center in Nairobi recently
Strategic partnerships Strategic partnerships and alliances are important component of non-organic growth. MTN Business has among other partnerships, partnered with Microsoft to resell some of their business enterprise solutions. Working in partnerships brings together players with unique competencies to deliver something revolutionary, he explains.
The Cloud Solution Provider (CSP) Partnership with Microsoft allows us to sell Microsoft Office 365, express route as a bundled solution to our customers, we also have the local Microsoft Azure instance in-country meaning our customer can now have their services of a Data Centre capitalizing on Microsoft Azure platform in country without worrying of their data and/or critical information being stored outside the country. This is a pure Opex model where our customers do not have to invest heavily in IT infrastructure including resources. “We have the capacity and resources to compete regional and we aim to be the Pan African ICT solution provider of choice. There is so much that we can do in this industry. As ICT evolves we shall continue to be more innovative,” concludes Kennedy.
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Africa 18 Inspiring Woman
This Start-Up is Kenya’s First Online Tendering Portal By Alex Nyamu
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elen Njoroge is the founder and co-director of Tenders Kenya, a leading tender portal in the country
Prior to forming my own company, Tenders Kenya, I worked as a project coordinator for the Federation of Women Entrepreneur Associations of Kenya (FEWA), the umbrella body of all women entrepreneur associations in Kenya. My ability to work competitively saw me rise through the ranks within a short time to be one of the high performing staff at the institution. Working at FEWA not only helped me elevate fellow women but was also a key motivation towards my entrepreneurial journey. I interacted a lot with successful women entrepreneurs who inspired me.
For me, trying a hand at entrepreneurship meant bridging a gap or solving a particular problem affecting the society. That is why, in 2013 when the current Kenyan government came into power, it enacted a law to reserve 30 per cent of all public procurement opportunities for women, youth and people with disability. We saw this as a huge opportunity and started training people on how to participate and win government tenders.
To know the available tender openings, one needs to buy a newspaper as that is where tenders are advertised daily. Buying newspapers is costly for the target market. Besides, perusing through the papers for tenders seemed to be time consuming.
This prompted me to develop a digital platform where I would put together all these procurement opportunities on a daily basis for my target clients. I was lucky to find a committed partner and together, we raised an initial capital of Ksh. 200,000 which was majorly used for web development.
Helen Njoroge,founder and co-director of Tenders Kenya.
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Our firm provides a digital, cost effective and efficient platform where all entrepreneurs and especially women, youth and people with disability can access
both government and private procurement opportunities. We have filled out all categories ranging from bids, expression of interest and consultancy. We also highlight tenders reserved for women, youth and people with disability. Our aim is to empower these groups of people.
Turning point Initially, Tenders Kenya provided information at no cost. It had envisioned earning from website ads. Furthermore, it had planned to partner with financial institutions that could buy advertising space in the portal. That did not work as planned. Although Google paid for the traffics per click, it was not sustainable.
A few months after developing the website, the unexpected happened, it crashed.
I received so many phone calls from clients and that was when I realised that there was value in it. We started charging for our services. That was our major turning point.
2015 she was recognized as one of the top 40 women under 40 in Kenya for her role in procurement.
With just a team of four people, Tenders Kenya currently has over 16,000 subscribers. Users receive daily alerts on the available tender opportunities via email.
On average, we get seven new subscribers every day. Most of them are through word of mouth. Quite thrilling for us.
We charge an annual subscription fee of Ksh. 2,000, which is way much cheaper compared to buying newspapers on a daily. Most of our revenues streams are from the subscription fees and website ads. Training We plan to conduct training on procurement beginning May this year. We realised that so many people apply for tenders but never qualify. We want to help young entrepreneurs understand the modalities of submitting a winning tender proposal.
16,000 Tenders Kenya currently has over 16,000 subscribers.
The training will cover various aspects including the legal process, filling tender docs and presentation among others.
Upbeat We plan to expand into the East African region in the near future. Plans are also underway to allow both the government and private sector to post their procurement opportunities in the website.
Our ultimate objective is to be a leader in the procurement industry. Helen at a glance At Tenders Kenya, Helen is responsible for marketing, quality assurance, uploading tenders in the website and building brand presence and visibility. She holds a Bachelor of Arts degree in Economics from Moi University.
Currently, she is pursuing masters in population studies at Nairobi University.
Her professional background is in project management and coordination.
In 2015, she was recognized as one of the top 40 women under 40 in Kenya for her role in procurement.
Her views on entrepreneurship What problem are you trying to solve when starting a business? Is the business going to generate income? Take time to think through your idea. Talk to your parents and friends, let them judge and critic the idea? Conduct a thorough market research before implementing the idea.
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Africa 20 Youngprenuer
Wilkings Fadhili, Fashion Torch Africa’ Founder Talks About Fashion And His Desire to Make it Big Wilkings Fadhili, Fashion Torch Africa’ founder and CEO talks about fashion and his desire to make fashion and other creative brands grow into sustainability. Jennifer Nyawira puts his story into perspective. The following is an excerpt of the conversation, edited for length and clarity.
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t just 25 years, Wilkings is the founder of not one but two fast growing companies. One of them, Fashion Torch Africa, has gained global recognition that saw him land a Sh16.5 million investment dealership from a US based firm. He is indeed an inspiration to many young people that with a powerful vision, anything is achievable.
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DA: Who is Wilkings Fadhili? Wilkings: Wilkings is this entrepreneur with deep passion in creating solutions to top problems faced in Africa and making the world better than the way he found it. DA: Having studied Mass Communication and Public Relations, how did you find yourself in the fashion industry?
Wilkings: Well, after school, I worked in a local media station. I was also a model. However, I realised there were a lot of things I could do apart from just being a model and a news writer. So I quit my job. I thought of the value I could add in the fashion industry, and pap! The idea of Fashion Torch Incubation Hub was born. DA: Tell us more about Fashion Torch Africa? How was it born?
Wilkings: Fashion Torch Africa Incubation was born from the desire to see fashion and creative brands grow into sustainability, something that’s really money making. It is also one of the activities that contribute to the growth of the Kenyan economy. DA: What inspired you to start Fashion Torch?
Wilkings: I realised fashion and creative brands can be handled and nurtured into a real business entity just like any other. Therefore, I thought why not create a brand that helps and nurtures these fashionistas and creatives? DA: What about the incubation hub?
Wilkings: Fashion Torch Incubation hub is a rebrand of Fashion Torch Africa. Fashion Torch Africa started as a public relations, events and Modelling agency. But then again, I realized I wanted to do more than just that. I then brought in the incubation hub aspects and operations. Currently, we are just Fashion Torch Incubation Hub connecting fashion and creative brands to mentors, trainers, investors as well as business development.
DA: Highlights of your experiences as a speaker at the Blaze and the Global Entrepreneurship Summit? Wilkings: It was such an honor being a speaker and mentor at Blaze. My best feeling was having the opportunity to inspire youth, teaching them how to start and grow a business.
The Global Entrepreneurship Summit came when I was just scaling up in business. It was an honor learning from top business leaders from all over the world and of course sharing a platform with them especially the former President of United States Barack Obama. DA: Tells us more about StartUpNow?
Wilkings: StartUpNow is a management company which I started in November 2016. The vision is to equip entrepreneurs, connect them with investors through our monthly StartUpNow Entrepreneurs Hangout and our main summit and help brands grow into businesses that solve top problems faced in Africa. DA: What are your other key milestones?
Wilkings: I was named Top 40 under 40 entrepreneurs in 2015 by the Business Daily Africa survey. Fashion Torch was also named as one of top fast growing midsized companies in East and Central Africa. DA: Have you faced challenges?
Wilkings: First, it was people failing to believe in our vision and concept. However, I learned one should keep doing what you think you are pretty good at. DA: What advice can you give to young people who are interested in joining the fashion industry? Wilkings: Aspiring fashion entrepreneurs must have a clear vision of what they want to achieve and the value they want to add in the industry. They must be authentic. DA: Current trends in the industry?
DA: Recently you were awarded a grant of Sh16.5 million by a US-based company. Tell us more about it?
Wilkings: ‘Pharell Williams hats’ are now a fashion trend.
Wilkings: I inked a deal worth Sh16.5 million from a US based investment firm, which is specifically intended to grow the business and help other businesses under us grow.
Wilkings: I hope to create more jobs and help brands grow through Fashion Torch Incubation and StartUpNow.
DA: Going forward, what should we expect from you?
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Africa 22 Cover Story
Surf Kenya Aiming To Offer Quality And Affordable Internet The company has created strategic partnerships to get more people online at reasonable rates By Shaban Ahab
environment, Surf set a base in Kenya and endeavored to offer more internet options to provide consumers a variety to choose from depending with their needs.
Products A major product is the Surfspot, a Wi-Fi hotspot service that allows consumers to earn free data bundles by watching adverts from the Surf’s advertisement partners or by buying affordable data for as little as Kshs 15. Surfspots are conveniently located in Universities and public areas across Nairobi. In 2017, Surf partnered with Facebook and Internet Solutions Kenya to offer Express Wi-Fi by Facebook hotspot service across Kenya. These hotspots can be found in the greater Nairobi area, Mombasa, Kisumu and several other cities. For Express Wi-Fi, like Surfspot, Surf partners with local entrepreneurs who serve as Surf retailers. They not only sell data bundles to customers, but also act as the initial point of contact with the customers. “So far Wi-Fi hotspot is found in about 25 towns across the country,” says Mr. Summer. People can connect to the internet service with their smartphones, tablets or laptops. Once in vicinity, the Wi-Fi signal pops up and one can sign up and immediately get started with some free MBs. New users access free internet for five days after which they are required to buy bundles. The prices are very competitive making it easy for people to get online. Customers can buy bundles using cash from the agents or through Mpesa. In 2017, Surf reached over 1000 WiFi hotspot location across Kenya and continues to grow.
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Mark Summer, Chief Executive Officer at Surf Kenya,
urf was launched in Kenya about two years ago with the goal of providing high quality and affordable internet access to the mass market. According to Mark Summer, the Chief Executive Officer at Surf, the company prides itself in offering people a good experience to get online
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at reasonable rates. Kenya has a vibrant internet market, and a large number of consumers at the middle and lower end class are not well served, due to the high cost of mobile internet. They also have limited options to choose from. Driven by the fact that the user base want to be online and the favorable regulatory
The hotspots are found in different locations meaning that a large number of people around the country can access internet. “Our goal is to make internet accessible to our users,” offers Mr. Summer.
Surf prefers locations where people congregate and feel safe to use their mobile phones to engage in various activities. They include commercial and public places as well as areas where people spend their leisure time.
1000 In 2017, Surf reached over 1000 Wi-Fi hotspot location across Kenya and continues to grow.
Surf Kenya head office team.
“Kenyan users are very excited for the new options and want to experiment different and affordable ways of getting online. We increase the hotspots every day and with that we have a very positive response in the Kenyan market,” he adds.
Strategic Partnerships According to Mr. Summer, the decision to partner with Facebook was informed by the fact that the two companies share similar goals of getting more people online. Facebook also has an initiative of providing internet access in emerging markets such as Kenya. It seeks to achieve that by partnering with local companies based in those markets who understand the needs of the users and the challenges facing them. Increasing access to internet helps people transact online more efficiently, access information, build online businesses and reduce travelling costs. That in turn is contributing greatly in building the modern economy. Mr. Summer explains that by creating partnerships, Surf is cutting costs that are eventually transferred to the users through affordable data. Sharing infrastructure with existing internet service providers has proven to be a convenient and efficient business model. Setting Itself Apart Surf has differentiated itself from other
internet providers not only by offering quality and affordable internet, but also by listening to its consumers who have been ignored for a long time. It works directly with the agents who help the company to understand the needs of the community and what can be improved to create a relevant product. “Being close to our endusers has made us to grow in leaps and bounds in just two years.”
Hurdles Despite its fast growth, Mr. Summer reveals that Surf faces various challenges just like running any other business. To start with, growing the company from a small business to what it is today, and installing hotspots every month is not easy. It requires a lot of adjustments in processes and procedures. Secondly, identifying the right locations to install the hotspots, which would attract many users, is challenging.
Going Forward Currently, Surf is only operating in Kenya and focuses on first serving the market fully by providing more internet options to the underserved. The market is characterized by a large number of young people who want to get online, but the cost is prohibiting. The company is therefore looking into how it can optimize its services across the country, while still remaining profitable. “We are focusing on installing more Wi-Fi hotspots in the next 12 months, besides growing our home internet,” offers Mr. Summer. Surf also looks forward to increase its customer base by replicating what it has already done in major towns to other regions. www.destinafrica.co.ke
Africa 24 Digital Payment
Chris Bwakira , Vice President, MasterCard Sub-Saharan Africa
MASTERCARD; A World Beyond Cash With proven record as a robust network in global electronic payments technology, the sky is the lower limit for MasterCard as they take lead on matters cashless transactions By Alex Nyamu
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uch of the world’s population does not have access to a bank account or any other reliable way to store and access their money. As such, they are reliant on hard cash and all the perils that come with handling it. Financial inclusion though comes with the idea that everyone deserves the tools to participate in a growing economy. Whether that means a mobile payment system or a secure ID card, financial inclusion becomes critical in empowering individuals across the globe. www.destinafrica.co.ke
Marked as one of the leading global payments technology firm, Mastercard has remained true to the philosophy of inclusion and empowering people towards a cashless world. As the Vice President and Area Business Head at MasterCard, Chris Bwakira explains, MasterCard has been able to build custom-made innovative tools both globally and locally. He says, “With massive presence of MasterCard in many countries, we have been able to provide solutions that are built to better the lives of people and
businesses and in essence add value to the economy.” He adds that the quality of their partnerships demonstrated in markets such as Rwanda in partnership with the government to digitize payments in health care, education and pensions is just but an example of how determined they are to propel cashless systems.
In Kenya, MasterCard has partnered with merchant aggregator Kopo Kopo reaching numerous markets in Africa. “This
partnership enables us to serve not only people in urban areas but communities in rural areas as well, and has given us the opportunity to widely roll-out Masterpass QR to merchants, states Bwakira.”
Equally, the team has gathered vast experience over the years on digital payments and seen first-hand how going digital can transform the way people transact and do business on a daily basis. “It is amazing just how quick business people can make transactions with a simple card. The final facet in our strategic operations now is capitalizing our ability to localize global services; a world where merchants can carry out transactions wherever they are in the world says Bwakira.” Financial Inclusion As part of its commitment to creating a world beyond cash through more connected and inclusive payment ecosystems, MasterCard focuses on delivering real solutions that make a noticeable and immediate impact.
Masterpass QR – the organisation’s mobile-driven, Person-to-Merchant (P2M) payment solution – has certainly lived up to that ideal. The system continues to gain impetus across Africa both in terms of allowing millions of micro, small and medium enterprises to accept quick and secure payments and in allowing customers to make simple and safe payments via mobile app.
First launched in 2016, the solution has since been rolled out to a number of markets across Africa. Most notably have been Nigeria, Kenya, Rwanda, Tanzania, Uganda and Ghana with various partners. One key strategic partnership in Africa making great strides is with Ecobank; an agreement that will ultimately result in Masterpass QR being rolled-out in 33 countries across Africa. These efforts form a core part of Mastercard’s strategy to develop more efficient payment systems that empower business owners and consumers. Bwakira says, “Business owners, particularly of MSMEs benefit from using Masterpass QR. They no longer have to
100 Million People 2Kuze was set up to develop practical, costeffective financial tools that expand access and build stable futures for over 100 million people globally worry about the historic challenges of acceptance of electronic payments or the exorbitant cost of installing payment infrastructure like point-of-sale devices. By driving acceptance for merchants, Masterpass QR facilitates operational efficiencies for MSMEs, which are the backbone of emerging market economies.”
Security MasterCard strives to deliver efficient, cost effective and above all secure solution for merchants across Africa. This is an essential step to providing the level of support required to grow and develop businesses. With cybercrime on the rise, MasterCard is alert to the reality of criminals stealing information from merchants to commit financial fraud. With the companies’ deep rooted history of investing in and innovating across multiple layers of technology – like EMV, tokenisation, physical and behavioral biometrics and artificial intelligence – businesses and merchants can rest assured that their cash is safe.
“Securing the digital payment ecosystem is a big focus for us at Mastercard, and our aim is to deploy solutions that will keep consumers feeling safe, adding to the existing prevention, detection and identity tools already in place,” pinpoints Bwakira. Mastercard’s latest initiative in the digital security space is a predictive tool to combat card fraud after data breaches – it is aimed at reducing the cost of fraud and protecting at-risk cardholders. Innovation Buoying Mastercard’s commitment to
customer safety is the dedication to constant innovation at the company. Early this year, the company launched a digital platform dubbed 2Kuze that connects smallholder farmers with agents, buyers and banks in East Africa.
2Kuze, a Swahili word which means ‘let’s grow together’ enables farmers to make and receive payments for agricultural goods via their feature phones; a move that brings the benefit and security of mobile commerce and payments to farmers in Kenya, Uganda and Tanzania. Developed at the Mastercard Lab for Financial Inclusion in 2015, 2Kuze was set up to develop practical, cost-effective financial tools that expand access and build stable futures for over 100 million people globally. Through a grant from the Bill & Melinda Gates Foundation, the Lab is working with East African entrepreneurs, governments and other stakeholders to develop local products rooted in the company’s global know-how.
“We believe that by using mobile, a technology that is universal among farmers in Africa, we can improve financial access, bring in operational efficiency and facilitate faster payments. We created 2Kuze in our Lab in close collaboration with farmers, representatives from the government, farmer-led cooperatives and buying organisations,” says Bwakira. “We are committed to developing marketrelevant payment solutions that enhance the adoption of cashless transactions by building solid partnerships.”
In summary Central to the ethos of Mastercard is connecting with local communities in a meaningful manner to help support them. Through its very own slogan ‘a world beyond cash’, Mastercard is advancing social sustainability by giving people around the world greater access to the financial system. “We believe that how we do business is as important as what we achieve. We care about the communities in which we live, work and conduct business,” concludes Bwakira.
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Africa 26 Competitive Adv
Billy Owino, CEO, TransUnion Kenya.
TransUnion - Optimising Competitive Advantages for Businesses Through Specialised Risk Information Solutions By Shaban Ahab
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n a fast-growing digital economy, businesses need to find new ways to remain relevant in a competitive credit market. Billy Owino, CEO for TransUnion Kenya talks about the organisation’s recently launched Mobile Loan Scorecard that offers Risk Information Solutions to businesses.
TransUnion (TU), a global leader in information and risk management gathers analyses and deliver information for www.destinafrica.co.ke
consumers and businesses to help them maintain a competitive edge.
With its headquarters in the United States, TransUnion is operational in more than 30 countries worldwide including a large presence in Africa. In Kenya, the firm is headed by Billy Owino who serves as the Country Executive. In a lengthy engagement Owino discusses how TransUnion creates an economic and competitive edge for customers
and businesses through specialised risk information solutions.
A youthful and charming executive, Mr. Owino is passionate about data analytics and credit in Africa, and articulately elaborates what he envisions for TU’s regional unit.
“We are a tech firm that helps businesses manage risk, improve efficiency, reduce costs and optimise their potential through
5 million customers there are more registered mobile money users in Sub-Saharan Africa than the rest of the world with 5 million customers in Kenya alone having a mobile loan risk based solutions via a renowned Mobile Loan Scorecard,” he begins. TransUnion Mobile Loan Scorecard Invention & Relevance “With Africa having one of the highest mobile penetration rates and Kenya leading at 39 million subscribers, an equivalent of 88 per cent of the population, it is no doubt that mobile devices have become an integral component in our lives. Mobile today defines customer engagement across many fronts. As such, if early adopters take this advantage, they can strengthen consumers’ interactions and set themselves ahead of the pack,” explains Mr. Owino. Explaining further, Mr. Owino argues that there are more registered mobile money users in Sub-Saharan Africa than the rest of the world with 5 million customers in Kenya alone having a mobile loan. Due to the vibrancy of the Finance-Technology (Fin-Tech) industry disrupting the status quo, more Kenyans now access financial services on mobile phones compared to traditional financing channels. “The mobile loan market is moving fast, and if you want your business to remain relevant, you must move with it,” asserts Mr. Owino.
Because the ability to make fast, consistent credit decisions is vital for any individual or business, the mobile loan access gives that competitive advantage. A good example being of a ‘mama mboga’- Street, vegetable vendor in Nairobi who wants fast and secure access to mobile loans.
More often, the vegetable vendor takes on a loan via a mobile device to buy stock in the morning and repay in the evening, all within a span of 24 hours. We also have bigger population of Kenyans who are borrowing via mobile phones and don’t have traditional bank accounts. As a lender, it becomes integral to understand the needs of these consumers and provide loans quickly and efficiently without putting their own business at risk. Hence, the introduction of TransUnion’s Scorecard. “While it is true one way or another people are going to get loans, too often this happens at a high cost to the customer thus credit providers must step in to ensure that customers take loans responsibly and safely,” reiterates Mr. Owino in one of his writings on TransUnion’s website. TransUnion basically creates enabling environments for current and future generations of local entrepreneurs and businesses whose enterprising spirit jerks our economies by helping them get access to the resources they need, safely and quickly, to further their businesses. How the scorecard works Using their mobile devices, consumers send the lending institution minimal information, such as their name and identity number. The Scorecard then quickly delivers a recommended outcome of—Approve, Decline or Refer—based on the lender’s internal credit policies and an accurate assessment of credit risk.
Information being an empowering tool rather than just numbers and data, Mr. Owino says the Mobile Loan Scorecard uses the most complete, multi-dimensional information available to help businesses extend the right credit, to the right people, on the correct terms. By doing so, the efforts become part of a nationwide initiative instrumental in cleaning up the mobile lending industry by working together for the good of the people. “Individuals need to regularly check their credit worthiness so that they know where they stand and encourage them to utilise the once-a-year free credit report,” adds the jovial director.
Emerging trends Despite credit information sharing having a negative perception in the minds of consumers, the industry has massive potential for growth. In his own opinion, the Director says that the credit information sharing industry in Kenya is only a shadow of its great potential. “We ought to be in a place where individuals are rewarded based on their risk levels. Credit Information Sharing still produces negative reactions in many consumers by the mere mention of the word ‘listing. ’We are trying to change this through educational initiatives about the need for credit scoring.”
Credit information sharing is good for the people, businesses and the economy at large and according to Mr. Owino, capping of the interest rates offered by banks by the Central Bank of Kenya has had an adverse effect on credit provision. As a result, banks are now using more stringent ways to assess risk for one to access credit. Now credit access by SMEs has dropped by a whopping 30 per cent while personal loans by 15 per cent. Compared to 12 per cent for traditional loans, delinquency rate for mobile loans is much lower with the market rates at 4 per cent. This in a way has forced banks to get out of their comfort zones, be innovative and offer customised solutions.
Moving forward There is a lot of information about an individual that is never captured, but is vital in credit decision making, like credit reports by shopkeepers and other informal lenders. Owino says, “We are looking forward to ways of tapping alternative data which is going to be a big decision-making tool in the future.”
“We want to crack the agricultural sector and optimise its potential. Agriculture contributes massively to Kenya’s GDP to nearly 70 per cent, but it is extremely underserved in terms of credit provision. www.destinafrica.co.ke
Africa 28 Skills Dev
Arc Skills: Bridging Skills Gap Through Training The skills development company offers bespoke training solutions to tackle the critical skills gap in order to address employability and productivity By Jennifer Nyawira
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any countries the world over are experiencing the employment paradox. On one hand, there are millions of people complaining they cannot find work. On the flipside, employers claim they cannot get qualified people to drive their businesses forward. Without doubt, there is a mismatch between the jobs available and what job seekers can offer, which perhaps has led to the high unemployment rate among the youth. It goes without saying that most fresh graduates lack necessary skills to handle available jobs. Is it that our education system is producing more academics who lack practical skills? In that case, what measures should training institutions, the education system and employers implement to eliminate this disconnect? Arc Skills, an international skills development company, is addressing the issue by bridging the skills gap. “We offer bespoke training and skills development solutions aimed at addressing employability and productivity,” says Mr. Peter Kimurwa, CEO, Arc Skills Kenya. “We seek to help employers and employees optimize their performance and engagement,” he adds. In order to achieve this, people must be adequately and appropriately trained. www.destinafrica.co.ke
Mr. Peter Kimurwa, CEO, Arc Skills Kenya.
The company works with clients spanning across various industries including businesses, schools and not-for-profit organisations. It has presence in Dubai, South Africa, Kenya, Nigeria, and Malaysia. With a large network of trainer consultants who are certified by international providers, Arc Skills delivers world recognized qualifications.
We offer bespoke training and skills development solutions aimed at addressing employability and productivity
Training solutions Arc Skills provides tailored training solutions to large and medium sized companies facing skills or productivity challenges. “Our work is to systematically identify gaps within their workforce and subsequently design learning and development solutions in order to raise their capability level,” avers Kimurwa. The learning solutions focus heavily on sustainability, and the approach enables clients to conduct audit and evaluation to assess their employees, which allows them to get value for their money. Besides, the institution offers structured programmes that are customized for a specific company based on need. The development programmes equip
Why choose Arc Skills? To start with, Arc Skills provides training programmes that are focused on creating sustainable learning impact.
The company is also part of a strong global group that has been in the education space for more than 50 years. “We have access to partnerships and curriculum that some of our local competitors can only dream of,” affirms the executive. Besides, the institution is market focused. It aims to understand its clients’ business and market structure, identifies the specific learning needs of their employees and then develops customized solutions.
Some of the students during the graduation ceremony held at Garden City.
employees with the skills and ability to be more productive, powering a business to success.
In addition to helping businesses, Arc Skills endeavors to bridge the skills gap in communities. Through Technical Vocational Education and training (TVET), the institution strives to provide training opportunities to social groups that suffer from high unemployment rate. The training is facilitated through corporate partnerships. For instance, Arc Skills and Actis recently recognised 130 students for achieving internationally accredited certification in various construction trades including masonry, plumbing, tiling, formwork, carpentry, plastering and scaffolding. In 2015, Arc Skills partnered with the International Youth Foundation, the Housing Finance Foundation and Barclays Bank which sponsored the training of 500 youth. “Our model is simple; our hands-on approach enables students to learn through practice using modern technical training methodologies. The training is 70 percent practical and 30 percent theory,” says Kimurwa. The vocational courses are short in duration and typically last three to four
Our model is simple; our hands-on approach enables students to learn through practice using modern technical training methodologies weeks, and are locally and internationally accredited. The courses cover various sectors including construction, hospitality, automotive engineering, healthcare and retail among others.
Lastly is Skills 21, a revolutionary program that enables parents and teachers to empower children with the necessary 21st century skills that are essential for success in and beyond school. The programme helps children identify, develop, and use real-world skills necessary to excel in and out of school.
Industry trends According to Kimurwa, there has been tremendous growth in the TVET space. From individuals to policy makers, it has been recognised that skills development is vital to curb youth unemployment and accelerate economic growth.
Kimurwa also argues that the use of technology in deploying learning and development has enabled companies drive down the cost of learning, notably through e-learning.
He further cites that there has been growing realization by companies that investing in training and skills development for their employees is not a luxury, but an investment strategy. Changes in consumer tastes and need for new skills have also disrupted various sectors of the economy. Road ahead Going forward, Arc Skills plans to contribute to its clients’ growth ambitions in their respective markets through its skills development courses. It also aims to become a partner of choice in skills development and contribute meaningfully to the resolution of unemployment agenda in the country.
Kimurwa believes that it is in the government interest to create employment thus it should play a critical role to simplify the business environment and make it conducive for businesses to thrive. www.destinafrica.co.ke
Africa 30 Human Capital
By Perminus Wainaina
Top 5 Ways to Boost Your Career
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he start of a new year is an exciting period as many of us see it as an opportunity to start afresh. In a new year there’s renewed hope that maybe things will work this time around. No wonder many of us start the year by making resolutions.
In my article today I’d like to address those looking to boost their career. It could be that you are looking to change jobs, desire to earn more, grow in your career in terms of learning and applying new skills or get a senior role. Some of you have decided that this is the year they will earn their MBA. Whatever goals you have in mind, I’d like to share five tips that you can apply to ensure that your plans become a reality.
But why do you need to plan in the first place? Having a goal is important for your career progression. Things don’t just happen by themselves. Goals are important in the sense that they help us assess where we are and what we want inthe future. Also, through goal setting we are able to make the most of our strengths as we improve on our weakness. If you don’t have goals you won’t be able to know when you are deviating from your core purpose. Lastly, with goals you are firmly in the driver’s seat. So, what are the tips for boosting your career ? Be Clear On What You Want.When it comes to your career, what do you wish
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Greatness, it turns out, is largely a matter of conscious choice, and discipline.
to accomplish? Human behavior experts advise us to be specific and also write down our goals if we want to accomplish them.Whatever you want to achieve will not happen if you are not crystal clear. An easier way to approach this is to envision how success will look like 12 months to come. For example if you are planning to go back to school, success will be you completing the MBA course work and embarking on the project. When you become clear on what you want it then becomes much easier to plan and execute. Execute. When it comes to our personal lives, the major hindrance to our growth is on our inability to execute our plans. Few of us follow through on our plans and promises. Unlike in our workplaces where there’s always someone above us reminding us that we have to achieve XYZ, rarely do we have someone to account to when it comes to our personal lives and the plans we choose to pursue. And therein is the biggest problem. We start the year with great plans but we do absolutely nothing and yet expect things to change. The best way to approach your plan is to write everything, step by step and attach some milestone and timeline to the goals. This way your goal does not look insurmountable. You also tick away each step you accomplish. It is through execution that we make our dreams a reality.
Learn New Skills.In order for you to grow in your career, you have to learn new skills. It could be on job or soft skills. Keep abreast of your industry, sector and even the economy. The only thing constant in life is change. Apart from job related skills, employers are interested in soft skills such as leadership, communication, interpersonal and someone who is a team player. Build Your Network. We live in an interconnected world where we rely on
each other. And plenty of opportunities are to be found within this network. It has been proven that over 50 per cent of candidates get to know of job opportunities through networks. Before a job is advertised, be it online or through newspapers it will have been shared through networks. Are you well networked? Your network is your net worth. The more people you know and are willing to assist you, the higher the chances of progressing. First step is to create time and meet like-minded people. Keep in touch with old colleagues through emails or calls. Join professional associations like ICPACK and IHRM. Start to attend seminars. Meet people from other professions. Above all, be willing to help others and that way people will know that they can count on you and will return the favor if need be.
Improve Your Mindset.Even with proper planning things won’t always go your way. You will face disappointments in the New Year but you should strive to see the positive in everything, either good or bad. When you are positive and happy you attract opportunities. To survive the harsh times build a support network. Consult widely and get to hear other people’s opinions. The strange thing is whatever challenge you are facing, there might be others facing the same or have been in a similar situation and through sharing, they can advise you on what they did to overcome the challenge.
As to whether 2018 will be a success solely depends on you. I’ll leave you with a quote from Jim Collins,“Greatness (and success) is not a function of circumstance. Greatness, it turns out, is largely a matter of conscious choice, and discipline.” PerminusWainaina is the Managing Partner & Head of Recruitment at Corporate Staffing Services Ltd. Email: Perminus@corporatestaffing. co.ke.
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Africa 32 Enterprises
By Brett Parker
“
Start Reimagining Your Business Model Now
When you’re finished changing, you’re finished,” −Benjamin Franklin.
We don’t need to take his word for it. There are many inspired thoughts that punctuate the role of change in business. But when should change happen? Change is good This topic makes business leaders nervous. Change is good, but so is stability. The world does not comprise of only mavericks and trailblazers − and even those often reach their stature through steady determination, not constantly rocking the boat. Timing is important, as is a clear view of what lies ahead.
If there was ever time worth anticipating tomorrow, it is now. As the world builds on the tectonic shift of technology that was the Internet 1.0 era, we move into Industry 4.0, also called the Fourth Industrial Revolution. The radical impact with which technologies such as the internet, email and business applications have landed, is now evolving to reach beyond our computer screens and into the world around us. Breakthroughs such as the Internet of Things, blockchain, artificial intelligence, connected cars, smart cities and personalised consumer experiences are rewriting the rules of entrepreneurship.
Unfortunately this means nobody can, with certainty, predict what to expect. We can only determine how to be ready for it. Radically changing business models is not a new phenomenon. By 2027, three www.destinafrica.co.ke
Nobody in the banking, retail, media or education landscape needs to be notified about change −they are seeing it first-hand.
quarters of S&P 500 companies will be replaced. But over the last 60 years nearly 90 percent of Fortune 500 companies ceased to exist as independent entities. The last time business experienced such upheaval was in the late 1970s, when new technologies sparked a massive shakeup of incumbents leading into the consolidation− crazy 1980s. Such change always arrives. Hasbro, a multinational toy giant, previously sold textiles. So did Berkshire Hathaway, now an investment titan. Western Union was once the leader of telegraph systems, today it is a leader in cash transfers. Fujifilm has shifted its vast skills in chemicals from photography to making high-end cosmetics. But the waves of change are bigger, stronger and more frequent. Aptly the theme of the 2016 World Economic Forum in Davos was “mastering the fourth industrial revolution.” At SAP we define this event in three stages, aligned to the tropical depression, the tropical storm and the hurricane.
Companies in the tropical depression may not quite recognise change yet, since they seem to be in quiet waters. But the roaring clouds are gathering on the horizon. Those finding themselves in a tropical storm are more acutely aware of these changes and even trying to make the most of it by applying new technologies. They believe they are seeing the peak of the sea-change.
But that perspective is reserved for the companies in the hurricane: industries that are rapidly transforming, due to new business models, powered by modern technology. Nobody in the banking, retail, media or education landscape needs to be notified about change −they are seeing it first-hand.
Business models It is imperative that business leaders reimagine their business models. Fortunately, though we cannot see the future, we can look at what is working so far. There are six distinct business models that have shown their resilience and talent.
First, but in no particular order, is the Outcome Based model. Instead of selling just products or services, a company’s revenue is determined by the outcomes their customers experience. Insurance companies favouring a usage-based model are good examples of this. T
The second model is Expansion into New Industries and Markets−the most popular example of disruption. Examples include banks moving into telecommunications and telecommunication moving into banking. Amazon −a major freight customer −is now expanding into that very business.
Digitisation of Products and Services is the third model. Here companies use digitisation to improve the entire value chain and reduce costs. Think Apple’s music empire or the drive by banks for customers to swipe cards instead of exchanging cash. Companies that compete as an Ecosystem embrace the fourth model, using complementary partners to build richer products. One could argue that car companies have been doing this for decades, but the connected car is reshaping even that stoic sector through new and radical partnerships. The fifth model needs little introduction. Shared Economy businesses thrive on exploiting under-utilised assets sourced from third parties. AirBnB owns no hotels. Facebook creates no content. Yet both grow on those elements, all coming from the outside. Finally, the Digital Platform is the sixth model: this could be an online marketplace such as New Zealand’s Powershop; a networking space like SAP Ariba or the business tools found in Microsoft’s Office 365. Digital Platforms not only offer more for less, but create new and exotic ways of monetisation.
Even SAP has shifted its business models. The vast majority of our revenue comes from streams that didn’t even exist a decade ago. Your business may still be in calm seas or perhaps it already feels the waves smacking its hull. Those clouds of change are not going to blow over. It is time to sail the seas of change. The Author is the Managing Director SAP Africa
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Africa 34 Customer Service
Evolving Preferences of Millenials By lucy kiruthu
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he Millenial. One of the largest generations in history are unquestionably shaping the future of business and marketing. Known as digital natives, they have a combine purchasing power of over USD 10 trillion globally. With their unique experiences, they are poised to change the way we buy and sell. In the following article, Lucy Kiruthu, the Lead Management Consultant at Evolve Business Consultants explains why it is easy to understand why many companies are trying to appeal to the millennial generation with alternative marketing solutions.
Who is the millennial customer? The millennials are those considered to have been born between early 1980s to mid-1990s. This generation otherwise referred to as generation Y is sandwiched between generation X and the upcoming generation Z or the centennials. Millennials are the sons and daughters of the younger baby boomers and the older generation ‘Xers’. Most of their parents have had formal jobs and as children, millennials had a structured lifestyle to fit in their parents’ schedules. In matters business and customers analysis, millennials are today shopping for themselves, for their children and are influencing the purchase decisions of their parents. In addition, as business owners,
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Understanding market needs and meeting them appropriately is vital to developing brand loyalty and certainly something that will give any business a competitive advantage
Businesses must not shy away from customers that have gone digital and that demand a better experience than the generations before them
middle level and senior managers they are involved in the making purchases in their organizations.
What do the millennial customers prefer? The millennials are well educated and informed. They witnessed the digital transformation from their early years. They have grown up with access to the internet, with computers, mobile phone, cable TV, microwave, instant showers, mobile money and the like. As a result, they are tech-savvy. Notably, these millenials have grown up experiencing much better services than their parents did. Because of the environment within which they have grown, millennials as customers tend to have higher expectations. They prefer to get things done faster and prefer to interact online via their mobile phones and other gadgets. They like to look at online reviews and ratings for both products and services and to compare multiple online stores before making purchase decisions. Because of the improved access to information, millennials are able to make informed decision and get better deals than their parents. With better understanding of their rights as customers, the Millennials often demand to get value for their money unlike their parents would. What can businesses do to serve the millennial customer? Is your organization making it easier for millennials to do business with you? As customers, millennials comprise a sizeable percentage of consumers that has a significant purchasing power. Ignoring this group is only to the detriment of your business. Businesses targeting the millennial customers need to understand them more. Having grown up in an interconnected world, the millennials like to do business with businesses that are easy to do business with. They desire to have a painless end-to-end customer experience; they are keen on quality and trendy stuff and like to keep up with the times. To serve the millennial customers
effectively, businesses must rethink their overall customer experience. Most importantly, businesses must focus on speed and pay more attention to what their millennial customers are saying. Social media is a big talk currently. Are Kenyan businesses connecting adequately with Millennials online? Millennials are active on several social media platforms. They are on Instagram, Facebook, twitter, LinkedIn, Whatsapp and many others. They not only use social media to keep in touch with their friends, but also to interact with businesses. Millennials would rather chat online than send an email, make a telephone call or visit an office. Therefore, businesses hoping to reach out to Millennials need a heavy online presence across multiple channels. While some Kenyan businesses are adequately connecting with their millennial customers online, many others are still lagging behind. Businesses need to embrace social media to keep the Millennials informed, to handle their enquiries, offer services and to deal with any dissatisfaction expressed online. Businesses must not shy away from customers that have gone digital and that demand a better experience than the generations before them.
Understanding market needs and meeting them appropriately is vital to developing brand loyalty and certainly something that will give any business a competitive advantage. Kiruthu is the Lead Management Consultant at Evolve Business Consultants a Nairobi Based Management Consultancy firm on a mission to Inspire Positive Change in Business and Society. The firm focuses on Strategy, Leadership and Service Excellence. Please connect via twitter @EvolveAdvisory or Facebook @ EvolveBusinessConsultants
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Africa 36 Corporate Fitness
Why Corporate Fitness is Important By Vincent Muasya
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he employee is one of the most valuable resources to any enterprise. Having healthy employees will normally translate to increased productivity and ultimately better business. The time that Kenyans are spending at the work place is on an all time high. More time spent at the work place and the increasing dependence on electronics at work easily explains why many Kenyans are overweight and out of shape. In fact, a good percentage of employees in the Kenyan corporate sector do not get adequate exercise. Maintaining a healthy work/ life balance is becoming increasingly important in order
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to improve productivity. It is not odd to find out that many corporate employees have to extend their time at the office or in the ‘field’ to catch up with unending deadlines and targets. As a result, most of them do not get adequate opportunities to engage in physical activities that will help them improve their physical fitness and ultimately improve their health which could positively have an impact on their productivity. Many corporates borrowing the biblical narrative of Moses have welcomed corporate fitness as a way to mitigate these concerns. Workplace fitness is an organized program that a company initiates for
their employees to help reduce health risks, enhance personal effectiveness, improve quality of life and to benefit the organization’s efficiency. The goal of these corporate fitness programs is to educate and encourage employees to adopt a healthier lifestyle.
Benefits of Corporate Fitness • Fitness Lowers Healthcare Costs Healthier employees cost less than unhealthy employees. Healthcare industry experts including insurance companies estimate that between 70 to 90 percent of healthcare spending is caused by problems associated with unhealthy lifestyle choices that can lead to chronic diseases.
Unhealthy lifestyle choices range from lack of adequate motion, improper nutrition to habits such as smoking and excessive alcohol consumption. These choices impede productivity and cost the Kenyan corporate employer millions of shillings each year. Having fit workers results in reduced rate of illness and injuries among employees. Unhealthy employees on the other hand, experience a wide range of work-related injuries such as muscle strain, carpal tunnel syndrome, stress fractures or back pain. Such persons are also predisposed to developing complications such as diabetes, heart disease or a stroke.
• Less Absenteeism Healthier workers miss fewer days of work. This is so because chances of employees being absent due to ill health become slimmer the fitter the employees get. Physical fitness boosts immunity and positively impacts on one’s health and wellbeing. Sick leave days are thus reduced. • Less Stress Contemporary workplace fitness programs educate and help employees on how to feel better on the job, both mentally and physically. Many corporate workers spend much of their workday sitting at a computer screen looking at the computer screen for long hours. This predisposes them to neck, back, shoulders, wrist and arm fatigue which can lead to musculoskeletal injuries and stress. There is need to have employees perform stretching exercises to relax and counter depression and alleviate stress. This also entails tips for proper ergonomics to reduce stress and muscle strain when you are on the job. Such advice includes right posture, adjusting seat height and proper lifting technique. • Better Work Performance Employees who are happy and healthy tend to produce a greater volume of work at a higher quality than unhealthy employees. Corporates have realized that implementing fitness programs at the work place ultimately increases the overall output of their employees. Retention of employees has also been reported in companies that have fitness programs for their employees. This in
are a number of options available. These include:
turn lowers recruitment and training cost. The feeling that the employer cares about their overall health tends to keep workers longer in a company. This also fosters team work as employees work out together and bond better in a more relaxed environment. Working out together helps foster the buddy system which is key for encouragement and to improve exercise adherence. These relationships help build a company culture of cooperation that can pay off in increased loyalty and in the overall good will that employees feel toward their employer. How and where to start Once the need has been identified, employees have been sensitized, and a service provider has been identified, there
• Provisions of a room- The Company provides a room that is well lit and well ventilated. This room can double up as a meeting room or even a lunch room. This room becomes the venue for conducting fitness classes that are tailored to meet specific fitness objectives. In this case, the service provider brings along with them weights, music, mats and any other apparatus needed to effectively conduct such classes. These classes are conducted at least three times a week depending on the preferred times by employees.
• Setting up of fitness facility- Where funds allow, a corporate could set up a fitness facility and engage a service provider to manage such a facility.
Vincent Muasya is a corporate wellness consultant with expertise and experience in corporate wellness and fitness programs. He can be reached on 0714 345671 or vinmwithi19@gmail.com / bodyandspiritgym@gmail.com
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Africa
GREAT DRIVE
motor
IRRESISTIBLE FORCE BMW X5 ride comfort www.destinafrica.co.ke
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Africa 40 GREAT DRIVE
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one of the engines struggles to pull the X5’s weight
Even the smallest, least powerful four-cylinder engine doesn’t feel underpowered in the X5. It pulls strongly from low revs and keeps pulling until you get close to the redline. Of course, the six-cylinder diesels are even stronger, but when the former is so good there’s little need to upgrade.
Company car buyers might also want to consider the xDrive 40e, a plug-in hybrid model that teams a 2.0-litre turbocharged petrol engine with an electric motor, the latter of which provides 20 miles of pure electric travel. This powertrain is seamless when in electric mode, and generally predictable and easy to get on with the rest of the time. However, a Volvo XC90 T8 is much faster, and will stay in electric mode more of the time.
The standard V8 petrol is hugely powerful and massively quick when you plant the accelerator, but it doesn’t make much sense. If you’re after one of the fastest large SUVs on sale, then the X5M’s V8 engine is boosted to even loftier performance figures, and is extremely rapid. Again, though, the M50d diesel is only just behind it in a sprint and makes more financial sense.
BMW X5 ride comfort Impressive in and out of town
You can either leave the options list alone and stick with the X5’s standard suspension, spend extra on adaptive comfort suspension, or spend even more on adaptive dynamic suspension. Alternatively, if you go for M Sport trim, you’ll get an adaptive M Sport set-up as standard.
As expenisive as it is, we’d recommend the adaptive comfort suspension; it’s noticeable more forgiving than the standard and Dynamic alternatives, yet still keeps the car tightly controlled in corners.
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If comfort is your top priority, though, it’s worth noting that a Range Rover Sport is even better at blending a controlled highspeed ride with competence over the sort of horrid surfaces you’re likely to find in town.
BMW X5 refinement Diesel engines let it down
By far the most refined engine the X5 has to offer is the V8 petrol. It’s extremely smooth, and sends no vibration back through the controls, even when pushed to its limit. The hybrid X5 is also very quiet – nearly silent in electric mode – although you do hear a bit of wind noise on the motorway, and quite a lot of tyre noise at any speed.
from when the petrol engine had to kick in. It’s also worth remembering that a Volvo XC90 T8 will cost half as much as the 40e in company car tax, although leasing tends to be more expensive on the Volvo.
Cost & verdict
The X5M is by far and away the thirstiest X5. It also emits the most CO2 and will cost the most to insure, service and tax. That’s the price for having one of the quickest large SUVs on sale, though.
Unfortunately, the diesels aren’t as good. The four-cylinder isn’t noisy at idle, but even moderate acceleration causes a gruff engine note to enter the car, while really stretching it sends lots of buzz through the controls. The six-cylinder diesels aren’t quite as bad under light acceleration, but still feel and sound strained once you start to push them. This is especially bad in M50d. Not cheap to buy, but strong resale values The X5 is far from cheap to buy, but next to rivals such as the Audi Q7 and Volvo XC90, it is competitively priced. And, as long as you stick to one of the lower-powered diesels, the X5’s running costs won’t be too bad, either. The four-cylinder 25d is best for this, and particularly the rear-wheeldrive version of it, which has the lowest CO2 emissions and best fuel economy of the entire range. Many buying through work will also be tempted by the hybrid 40e, and there is a potential for big savings if you do lots of short journeys. However, the economy will be pretty woeful once you’ve drained the electric motor’s batteries – we managed only 27.1mpg in real world use, measured
Resale values are impressive on the X5, so running one on a contract hire basis should work out relatively well in financial terms, and when it comes to trading it in at three years you can rely on getting a decent amount towards a new car.
Even entry-level SE cars get loads of equipment
Unless you buy the range-topping X5M or the M50d, which get unique performanceoriented equipment, there are really only two trim levels to choose between: SE and M Sport. Indeed, SE models are so well equipped, there isn’t any need to spend the extra on M Sport trim unless you’re tempted by its sportier appearance.
SE cars come with leather upholstery, electrically adjustable heated front seats, sat-nav, xenon headlights, front and rear parking sensors, automatic lights and wipers, 18in alloy wheels, DAB radio and Bluetooth. This is an impressively long list, so there’s not really much point adding to it. www.destinafrica.co.ke
Africa 42 ART
Thebe Magugu (24) Fashion Designer
K
imberley is hardly one of the couture capitals of the world, but Magugu was inspired by the women who surrounded him during his childhood to become one of the foremost young fashion designers in SA.
“I got into fashion by looking to my mother,” he says. “I saw how condent she was when dressing up and this made me want to give other women the same feeling. Because of the lack of resources in the town, people have a ‘just-do-it-yourself’ attitude, which fosters creativity and innovation. Kimberley also in uenced the use of juxtaposition in my work – modern/traditional, feminine/masculine and oversized/truncated.”
A graduate of the Lisof Fashion School in Johannesburg, Magugu’s collaborated with Woolworths on its #StyleBySA initiative and had his Geology SS17 collection showcased in the Italian edition of Vogue magazine.
A thought leader on youth culture and modern fashion, he’s contributed his views to e Times and Flux Trends. He’s currently working on a collection for South African Fashion Week, which he says is a commentary on the oppression of women. He’s aiming to build a “powerful, intelligent and multi-disciplinary fashion studio that contributes to society on multiple levels”.
“I approach everything to do with my brand, whether it be a new collection or marketing strategy, with the question: ‘How do we make this the first of its kind?’ I aim to earn a reputation for being a trail blazer,” he says. – EM www.destinafrica.co.ke
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Africa 44 TRAVELWISE
1. SUNGLASSES, H&M 2. T-SHIRT, TOPMAN 3. STRAW HAT, H&M 4. TOILETRY BAG, ZARA MAN 5. WALLET, POLO 6. BELT, H&M 7. JEANS, OLD KHAKI 8. APPLE IPHONE 6S PLUS, ISTORE 9. SNEAKERS, STEVE MADDEN 10. SUITCASE, TRAVELIGHT @ FRASERS 11. WATCH, ALDO 12. CAMERA, STYLIST’S OWN 13. ARM BRACELETS, MARKHAM 14. PASSPORT CARRIER, BUSBY @ FRASERS 15. BANDANA, TOPMAN www.destinafrica.co.ke
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