HUSTLE
ISSUE 001
MARCH 2018
EAST AFRICA
Africa's business magazine for the entrepreneur
FRANCIS WACHIRA EMBELLISHES HIS FARM WITH RARE BREEDS ACCESS AFYA BREAKS THE WALLS IN HEALTH SERVICE
Nurturing the Spirit of Entrepreneurship INSIDE
Top Lessons From Entrepreneurs
KSH 250 USH 8800 TSH 5500 RF 2125
AN APP LINKING PHYSICALLY DISABLED JOBSEEKERS TO EMPLOYERS HUSTLE EAST AFRICA
Twaweza
We are raising the bar with 4G+ so you can have double the speeds of 4G 4G+ is now available in Nairobi, Mombasa and Kisumu and will be coming to the rest of the country soon.
CRYSTAL CLEAR VIDEOS | FASTER SHARING | NON-STOP MUSIC | INSTANT DOWNLOADS
www.safaricom.co.ke
@SafaricomLtd
Terms and conditions HUSTLE EAST AFRICA apply
@SafaricomLimited
@SafaricomLtd
WELCOME MANAGING EDITOR: Amos Wachira WRITER: Jeff Korrir MARKETING MANAGER: Wangari Riba BUSINESS EXECUTIVE: Steve Angwenyi SUBSCRIPTION & CIRCULATION: Bill Karani DESIGN AND LAYOUT: Elite craft Limited ILLUSTRATIONS: Stanislaus Olonde PUBLISHED BY:
ELITE CRAFT LTD P.O BOX 12542-00400 NAIROBI CELL: +254 720 806488 EMAIL: info@hustlemag.co.ke
HUSTLE E.A IS PUBLISHED MONTHLY. Views expressed in this publication are those of the authors and do not necessarily reflect the position of the publisher. ©2018 Elite Craft Ltd. All rights reserved. Material may be reproduced only by prior arrangement and with due acknowledgement to HUSTLE EAST AFRICA MAGAZINE.
Entrepreneurs should brace for tough times Dear Readers,
T
he year 2018 portends a bleak economic future for our beloved country. The debt burden, as predicted and confirmed by the International Monetary Fund is one big challenge that will affect the economy of this country fora long time. Unfortunately, when the economy bleeds, the damage spills back to the people, and businesses are worst hit. At the same time, Kenya’s banking regulator Central bank is considering removing rate caps on loans, again shooting the small and micro entrepreneur in the foot. These are people who run small businesses which in turn employ thousands of people. By denying them access to affordable credit, we precipitate a situation where they can fold up, rendering thousands of people jobless. And with this, we are back to square one as a country. Unemployment levels are already hitting the roof, and it wouldn’t help if we continue killing businesses which create some of the jobs that we truly need. But it’s not all gloom. In this Issue, we feature some of Kenya’s most promising enterprises, spanning a wide range of industries. From agribusiness, to health to Information Technology. These resilient start ups provide hope for millions of aspiring and practicing entrepreneurs. They demonstrate that it can be done. Also, read on to get invaluable nuggets form Kenya’s most seasoned entrepreneurs, who critically look at the promise of entrepreneurship and why local youth are hesitant to join the bandwagon. Is it the education system? Lack of motivation? By sharing their inspiring stories, they also bring to the fore the reasons why the youth find it hard to start and grow businesses. It’ s a refreshing menu of entrepreneurship stories that you don’t want to miss. As always, enjoy the read! WACHIRA
Hustle Magazine
www.hustlemag.co.ke
@HustleMag1
HUSTLE EAST AFRICA
2
CONTENTS
17. 27.
11.
15.
25. 21.
WELCOME 2 QUOTES 5
BRIEFS 7 • Moi University Student Wins Entrepreneur Awards
29.
• CMA approves license for online foreign exchange broker • Kenya’s HydroIQ wins “Startup of the year Africa 2018” • EABL signs lease deal for office space in upcoming Garden City Business Park • Amiran Kenya launches new tomato variety • Tuskys expands Mavazi clothing stores with opening of eighth store in Eldoret • Rebranded Minet Kenya Starts Marketing its Services
EXECUTIVE CORNER 13 • Solar kiosks: connecting the mass market • Drilling money from tyres • Access afya breaks the walls in health service
35.
LIFESTYLE 21 Piling coins in the beauty industry
MAIN STORY 23 • Nurturing the Spirit of Entrepreneurship • In Kenya, an app linking physically disabled jobseekers to employers • Mogwli Mentoring: preparing the next generation entrepreneurs • Why do Local Start-ups Find It Hard to Access Funding? A Sankalp Entrepreneur Shares His Story
FARMING 33 • Francis Wachira embellishes his farm with rare breeds
33.
• Cowsoko: just tap to buy or sell livestock
QUOTES
COFEK Secretary General Stephen Mutoro “It’s no doubt that this rising levels of public debt will lead to the shrinking and drying up of major Foreign Direct Investments (FDIs) and occasion massive job cuts,”
Peter Gikungu Chege, Kenyan entrepreneur I have learnt that perseverance is one of the key traits of a great entrepreneur. I take every challenge as an opportunity to learn and grow.
Pieter Engelbrecht, CEO, Shoprite Expansion in Africa continues with a planned entry into Kenya before the end of 2018, where weakened competitor positions have opened a window of opportunity to strengthen the group’s presence in East Africa,”
Safaricom director for consumer business Sylvia Mulinge Iflix is passionate about local consumers in Kenya. We are committed to offering them the largest selection of entertainment programming, entirely on their terms through a personalised and localised service, to stream or download on any device of their choice,”
Make eCitizen payments with Paybill Number 206206 • Driving Licence Renewal • Passport Application/ Renewal • Business Name Search/ Registration • Certificate of Good Conduct etc.
How To Get Started
1. Visit www.ecitizen.go.ke and sign in or register 2. Select the service you require from the various government agencies listed in the portal and follow the steps to the end 3. Pay for the service via To access
download the Eazzy Banking App or Pick your Equitel line today.
hustle briefs
AWARDS
Moi University Student Wins National Qualifiers for the EO Global Student Entrepreneur Awards
T
he Kenyan chapter of Entrepreneurs’ Organization (EO), the world’s leading peer-to-peer network of successful business leaders and entrepreneurs today announced Towett Ngetich, Co Founder and CEO of Uthabiti Healthcare and a student of Moi University, as the winner of the National Qualifying rounds of the EO Global Student Entrepreneurs Awards (GSEA). Towett Ngetich will attend the EO Global GSEA Finals being held on 16th April 2018 in Toronto, Canada. GSEA is EO’s premier awards program for students who own or operate a business while attending college or university. This year’s qualifier competition hosted by EO Kenya and sponsored by AfricInvest and RSM, saw the participation of over 60 students from various colleges and universities. The final, was held on Saturday 3rd February 2018 at the Dusit, D2 in Nairobi, Kenya where student entrepreneurs competed against peers and were judged by prominent entrepreneur judges including George
Towett Ngetich(extreme right) at the GSEA event.
7
HUSTLE EAST AFRICA
Odo (MD at AfricInvest), Ashif Kassam (Executive Chairman of RSM Eastern Africa) and Kennedy Odede (Founder & CEO of SHOFCO). Sharing his excitement about the win, Ngetich said, “The Global Student Entrepreneur Awards is a powerful platform that brings together students who are willing to defy the odds and build sustainable ventures across the Globe. If you were to ask me, the ripple effect that we will see is a better future especially for emerging economies willing to embrace entrepreneurship at such an early stage. GSEA pairs you with EO members as mentors who, overtime not only share their thoughts on your business but they build you, they bring your character out of you and set you ready for investors, pitches and presentations. On the final day, you pitch against other brilliant students who inspire your every thought process regarding your venture. With all this, as students, you have a community that holds you up as you transition into a fully grown business. Many thanks to the EO for bringing student entrepreneurs
Towett Ngetich. together.” “EO’s Global Student Entrepreneur Awards is an incredible opportunity for students who want to connect with other entrepreneurs and take their business to the next level. Being the final Kenyan National competition for 2018, we were honored to host it at Dust D2, Nairobi and it was extremely rewarding and stimulating. In my eyes all 3 finalists were winners but Towett took the prize home due to his drive and adaptability,” said Anupa Sanghrajka, EO Kenya’s GSEA Chair. Jamie Pujara, EO Kenya President commented, “The Entrepreneurs Organization (EO) is the only global network exclusively for entrepreneurs. EO helps leading entrepreneurs learn and grow through peer-to-peer learning, oncein-a-lifetime experiences, and connections to experts. As the President of EO Kenya I believe that events like GSEA empower our students and help shape them to be the leading entrepreneurs in their generation. It is through their entrepreneurship that we will be able to solve the problems that plague our communities. I’m incredibly proud of our team for putting together this annual event, this is the fourth consecutive year we have held it and it was the best yet. I’ve been inspired by all three of the finalists who against all odds have following their dreams to create businesses that impact their communities.” Participants in the EO GSEA competition are college or university students and entrepreneurs that are primarily responsible for a business that has been operational for at least six consecutive months. Last year over 55 students from 55 countries participated in the Global competition. Previous winners of the GSEA finals in Kenya include Taita Ngetich in 2016 and June Syowia in 2017.
TRADING
CMa approves license for online foreign exchange broker
T
he Board of the Capital Markets Authority (CMA) has approved the grant of a license to Execution Point Limited to operate as a Non – Dealing Online Foreign Exchange Broker in line with the Capital Markets (Online Foreign Exchange Trading) Regulations, 2017. The non-dealing online foreign exchange broker license means the entity is licensed by the Authority to act as a link between the foreign exchange market and a client in return for a commission or mark-up in spreads and does not engage in market-making activities (buying and selling of foreign currencies). This is the first license to be issued under the new regulations, which brought the oversight of online foreign exchange brokerage services under the Authority, which includes licensing and supervision of licensed entities. Non-dealing Online Forex Brokers avail a trading platform to their clients that enables the clients to trade
from anywhere and at any time using their electronic devices. The platform provides access to global markets and also provides an opportunity to clients to educate themselves on the global financial markets. Non- dealing Online Forex brokers do not offer client advice or trade on behalf of their clients. Clients deposit their investment amount with an account to be offered by the broker. The trader (client) is responsible for executing trades – buying and selling of any products on the platform and the requisite risk assessments are undertaken to determine suitability of clients to participate in online
Imarika Caricash Mobile Loan
Features and Benefits • Easy and convenient access to funds.
This is a short-term facility exclusive to the bank’s customers. It is applied, processed and disbursed through the mobile phone. The loan is meant to address ‘micro’ working capital needs and emergencies for the bank’s customers
• Requirements: Operated an active account with the bank for at least three months. • Mode of Application: Dial *810# • Loan Eligibility- Dependent on the account turnover • Loan Tenure- 30 days • Minimum Loan – Kshs 100 • Maximum Loan- Kshs 70,000.
Cardinal Otunga Annex, Cardinal Otunga Rd P. O. Box 15352-00100, Nairobi - Kenya Tel: 020 5151500, Cell: +254 729986331 Email: info@caritas-mfb.co.ke Website: www.caritas-mfb.co.ke
MOBILE BANKING › To deposit to your account Pay bill No. 899790 › To withdraw and apply for mobile loan Dial *810#
forex trading. Forex trading (FX) is the speculation of one currency price against another currency. It is an example of a Contract for Difference (CFD) which is defined as an agreement to exchange the difference in the value of an asset from the time the contract is opened and when the contract is closed. When opening a FX & CFD account, an investor agrees to exchange the difference between the opening price and the closing price of the FX or CFD position with the Broker. One does not acquire ownership of the underlying asset when taking a long (buy) position nor are is one required to deliver the underlying asset when taking a short (sell) position. CFDs offer a simple method to speculate on different markets without owning the underlying asset on which the contract is based. This is different from Forex Bureau business where parties actually hold the foreign currencies being exchanged based on spot exchange rates.
Hustle briefs
AWARDS
Kenya’s HydroIQ wins “Startup of the year Africa 2018.
Kenya’s HydroIQ wins “Startup of the year Africa 2018”
S
tartup.Info has announced the winners of the “Startup of the Year 2018 competition” following an awards ceremony which took place in Casablanca at the end of last month. Following the success of the first edition of “Startup of the year Africa”, the collaborative startup magazine Startup. Info has reiterated its commitment to supporting African innovation. With the support of major international groups such as OCP, ENGIE, QWANT, FINANCE INNOVATION, PwC, Labs-NS-Avocats, Holmarcom Group, Royal Air Maroc, as well as 70 media and ecosystem partners, Startup.Info launched the 2nd edition of the contest “Startup of the year Africa”. This year, more than 600 startups from 52 different countries took part, more than 12 000 online votes were gathered, and 41 million people reached on social media. The jury of experts of the competition « Startup of the year Africa 2018 » on January 24, 2018 to choose the winners of the following awards: Startup of the Year Africa 2018: HydroIQ (Kenya) Founded by Brian Bosire & Victor
9
HUSTLE EAST AFRICA
Shikoli, HydroIQ is a virtual Water Network Operator. It brings intelligence in water distribution by preventing leakages on the network and automatic (mobile) billing a payment. QWANT PUBLIC CHOICE Award: Ecodome (Maroc) Founded by Youness Ouazri, Ecodome Maroc produces ecotouristic housing made of natural soil in the form of domes. OCP – AGRITECH Special Prize: GRACE AGRICOLE DE COTE D’IVOIRE (Côte d’Ivoire) Founded by Brou Kouame Yves Laurent, GRACI is a startup aiming at the development of rice production in Ivory Coast. It proposes a program of production, certification and distribution of Improved Certified Seeds of rice. ENGIE Special Prize STARTUP OF THE YEAR Award : Peachwater Consulting (Nigeria) Founded by Okey Ibekwe Esse, Peachwater Consulting designs, manufactures and markets Powerstove clean cookstove that is smokeless and generates electricity with 70% less biomass fuel than competitors.
FINANCE INNOVATION – FINTECH DESTINATION AFRICA & ROYAL AIR MAROC - AFRICA DIASPORA Award : Semoa (France) Founded by Edem ADJAMAGBO, SEMOA proposes a solution to the development of e-commerce in Africa by installing payment terminals throughout the continent. Holmarcom Group Special Prize: THEA (France) Founded by Dr. Eloi MONKAM, THEA is a medical mobile app that connects patients to doctors for a first diagnosis. PwC - JURY CHOICE AWARD: Priyo (South Africa) Founded by Palesa Mahlatji, PRIYO has developed a portable solar digital smart computer lab to train youth from underprivileged, under-resourced schools and communities in rural and peri-urban areas on how to use the computer. Priyo trains them in IT: End user computing, ICT, Digital Marketing and E-Learning and links job seekers to online employment opportunities. COMMUNITY MANAGER OF THE YEAR: Project Alpha (Madagascar) Founded by Muriel RANDRIAMASIMANANA, Project Alpha is an event agency. Its principal activity is based on video games and e-sport phenomena.
Hustle briefs
DEALS
EABL signs lease deal for office space in upcoming Garden City Business Park
E
ast African Breweries Limited (EABL) and Actis, a leading growth markets investor, have announced the signature of a long-term deal with Garden City Business Park (GCBP) that will see EABL take up a considerable amount of Grade A office space at the integrated development complex. The deal signing was done ahead of the official ground-breaking of GCBP adjacent to the current EABL offices in Ruaraka, Nairobi. EABL’s current commercial office block was unveiled in 1972 and has been the operational nerve centre of the company’s business since then. EABL Managing Director Andrew Cowan commented: “We are looking forward to moving some of our corporate functions into the new offices. A good working environment for our employees is something we place a big premium on. This move ensures the teams moving in can reside in a fresh and positive workspace allowing everyone
11
HUSTLE EAST AFRICA
who works for EABL to do their best work and continue to build our fantastic, iconic East African brands.” Commenting on the new deal Chris Coulson, MD of mixed use development, Garden City on Thika Super Highway, said: “We are delighted to have signed a pre-let agreement with EABL as our first tenants to take up space in Garden City’s new office complex, which is just phase one of the larger 60,000 m2 Business Park development still to come. We look forward to welcoming other tenants in search of world-class office space over the coming months.” The first commercial office phase is scheduled for completion in Q2 of 2019 and will be the newest addition to the overall 47-acre Garden City mixed used project, offering an important office address for both single corporate headquarters and multitenant occupancy. Construction first commenced at Garden City at exit 7 on Thika Superhighway in July 2013 and the
Business Park, spread across 15-acres within the master plan, is the second stage of the overall development. Designed by a team of international architects for both functionality and comfort, the Business Park will offer over 25,000 m2 of lettable Grade A offices, with a healthcare facility, two hotels and over 400 mid-market residential units to follow. The office complex will comprise a secure entrance, green spaces and a pedestrianised boulevard linking it to over 100 shops in Garden City Mall, 215 residential units in Garden City Village and the 3-acre central park. These integrated amenities complete ‘the perfect mix’ of the ‘live, work and play’ themed Garden City mixed-use development with its vast range of retail, dining, leisure and hospitality options offering excellent addon value to the anticipated 3,000-strong office community.
Tuskys expands Mavazi clothing stores with opening of eighth store in Eldoret
Amiran Kenya launches new tomato variety Amiran Kenya has launched a new hybrid tomato variety resistant to bacterial wilt. According to the agro inputs firm, the ZARA F1. variety is bacterial wilt tolerant for open field production, has good foliage coverage, and is suitable for growth during the dry and rainy sea¬sons. On maturity, it takes 75 to 80 days from transplant to harvesting depending on the prevailing weather. The Zara Fl variety tomato is available in stockists and costs as follows: 5g (Shl,500), 10g (Sh3,000), 25g (Sh7,000), 50g (Sh14,000). Douglas Munyao, an agronomist from Amiran Kenya, says 20g of Zara F1 has 10,000 seeds that would be adequate for an acre. He says 30g would be best to provide extra seeds to take care of those that get damaged during transport.
Leading local retailer Tusker Mattresses has opened the doors to its latest Mavazi Lifestyle clothing stores in Kisii and Eldoret towns. The two fully fledged stores located at Tuskys Echiro along Moi Avenue in Kisii town and Tuskys Eldo Centre in Eldoret town will provide a wide range of quality clothing fashion brands and accessories. The opening of the two recently developed stores in Kisii and Eldoret will push the retailers Mavazi Clothing stores network to 10 standalone branches countrywide. Other Mavazi by Tuskys stores include its flagship Mavazi by Tuskys store at T-Mall, Mavazi Pioneer, Mavazi Magic and Mavazi Tom Mboya Street in Nairobi. Other branches are Mavazi Ongata Rongai, Mavazi Juja Town, Mavazi Chania in Thika town and Mavazi United in Kisumu. Developed at an estimated cost of Kshs 120million, the two stores feature a variety of international and locally sourced lifestyle clothing items, shoes, babywear and related accessories. Speaking at the official opening of Mavazi Eldo Centre, Tuskys Group CEO, Dan Githua said the firm, has set its sights on the opening of at least 25 such stores countrywide by the end of this year. “At Tuskys, we are moving to plug existing market opportunities in various categories including the lifestyle clothing segment,” Githua said, adding that, “Backed by extensive feasibility studies and the pilot rollout of the first few Mavazi stores, we remain confident that the new stores will provide much needed leverage to secure our market position.” The progressive rollout of Mavazi by Tuskys stores is part of Tusker Mattresses corporate development plan.
Rebranded Minet Kenya Starts Marketing its Services Insurance broker Minet Kenya has embarked on a nationwide campaign to market its services after rebranding. The broker, formally trading as Aon Kenya, on Friday met its clients at the Coast to mark the completion of the acquisition by Capitalworks of AON PLC shareholding in AON Kenya. Speaking at a meeting with clients in Mombasa, Minet Kenya chief officer Sammy Muthui said the new brand carries the same promises the old one did. “We shall continue to offer the best in class risk, reinsurance and people solutions, with increased innovation and agility,” he said He said the change of ownership would not have any negative impact on the staff. “There will be no redundancy. In fact, we expect to continue attracting the very best talent in the market and beyond in this digital age.” Mr Muthui said the acquisition of Aon Plc shareholding by Capitalworks in the company would unlock significant agility that would enable them respond faster to client needs in providing solutions and in servicing market segments not previously easily accessible. He said Minet Kenya shall be the exclusive Aon Global Network Correspondent in Kenya and Africa. “We shall continue to maintain our global standards and accessing Aon’s global expertise, intellectual capital, data, analytics, research and global footprint,” he said. In February last year, the insurance company announced a change of its ownership structure in 10 countries, including Kenya, Zambia, Swaziland, Namibia, Lesotho, Angola, Mozambique, Malawi, Tanzania and Uganda. The Competition Authority of Kenya (CAK) approved the conclusion of acquisition proposal, indicating that the purchase would not have a negative effect on competition. HUSTLE EAST AFRICA
12
EXECUTIVE CORNER
TECHNOLOGY
SOLAR KIOSKS: CONNECTING THE MASS MARKET Far flung communities can now light a bulb, thanks to solar kiosk e-hubbs By Amos Wachira
O
ne in seven people in the world have no access to electricity to help them cook, keep food fresh and learn, according to figures from the
International Energy Agency. Nowhere else in the world is access to electricity a bigger challenge than it is in sub-Saharan Africa and developing regions of Asia. In Kenya, most people in rural areas stay in darkness when night falls.
William Mukaria, MD Solar kiosk Kenya.
13
HUSTLE EAST AFRICA
This means that school children do not have a source of light to study. For many of these, the alternative is costly kerosene which is not just a pollutant but also presents a health hazard. To plug this gap, a Berlin based company is offering a solution in the form of solar energy through solar kiosks. “Solar kiosk serves as a complete energy and business outlet for solar products, fast moving consumer goods and energy services. The models come engineered from Germany, with all the components and electricals,” explains William Mukaria, MD Solar kiosk Kenya. Using the solar kiosk e-hubb, off grid communities can access a range of services, from charging their mobile phones to purchasing perishable goods and cold drinks. “When someone is in a place like Narok, and wants to buy a drink, the necessity of refrigeration is undeniable. A chilled drink is a totally different product from one that is not. Such needs make the solar kiosk services highly demanded especially in such areas.” These paroducts are made available to residents in far flung areas without any additional costs. Food items can also be bought at the solar kiosk for the same rates as in other regions. “We realised that sellers are exploiting locals and selling stuff at high costs,” he says but clarifies that the firm’s primary focus is to make solar energy accessible to such communities. From the solar ehubbs, communities can also buy energy saving jikos as well as charcoal to lower their household spending costs, improve their health, and create a platform for furthering selfdevelopment. Solar kiosk has the biggest choice of solar lanterns, photo voltaic panels and home systems in Africa. “All our products are tested in a solar kiosk in Germany and approved for quality. That is why we rarely have customers come back to complain after buying our products. In addition, we give a 24 month warranty to assure our customers of safety.” Other items on sale at any solar kiosk include bulbs, batteries and converters as well as solar hot water boilers. “We know they
know about the solar but we give them a new value proposition, they can buy from us, enjoy other services and also get after sales services.” Considering that many communities do not have access to grid electricity, solar kiosk uses a formula to establish the best location for the kiosks. “Often we have conversations with the Ministry of Energy to understand which areas they are planning to connect to the grid so that we can focus elsewhere,” says Mr Mukaria. Already, the firm has established over 22 kiosks across the country. The kiosks are located in Western Narok, Eastern Machakos and Central Kajiado. The firm intends to open more branches reaching out to communities living around Lake Victoria, Homa Bay and Kwale near the Indian Ocean. In the regions where solar kiosk has already pitched tent, locals have started to feel the impact. “Our services are transformative in many ways. For instance the transition from using harmful sources of energy such as firewood and kerosene to a clean source of energy which is solar.” Solar Kiosk Kenya recognises the power of energy savings as a catalyst for positive transformation in the lives of rural communities. “Another way in which we impact on
people’s lives is through saving money. Considering that buying a solar panel is a one-off expense, as compared to the regular buying of kerosene, our customers are able to save money.” Recently, green energy initiatives targeting rural populations have been on the rise. From the US-led Power Africa Initiative and Electrify Africa Act to the African Development Bank’s new deal on Energy for Africa and the United Nations’ Sustainable Energy for All Partnership, these initiatives show that there is an energy gap in Africa. “Looking at the solar distribution especially in off-grid communities, it is not that these communities don’t know about solar energy, but the services are inaccessible to them,” observes Mr Mukaria. Access to electricity is fundamental to opportunity in this age. It is the energy that allows an idea to be transformed into a real business. Energy is the lifeline that allows families to meet their most basic needs. Renewable energy that connects Africa to the grid of global economy is a catalyst for economic wellbeing of communities living far from the grid. This is the reason why solar kiosks are going beyond provision of energy.
Apart from serving the community, the solar kiosk e-hubb offers opportunities to local businesses as franchise partners. “What makes us different is that we create an aspect of permanence. In addition to the solar kiosks, we have powered shops that we lease to the willing community dwellers at a fee. For example a powered barber shop can offer a livelihood to the owner of the business who will also employ three or four more people from the area,” says Mukaria to elaborate the impact of this venture in the communities in which they have presence. Mukaria acknowledges that connecting people to the grid is an expensive affair. According to him, there are currently 45 e-hubbs in use across 10 countries, producing 120,750 kilowatt hours of energy every year. He says that there is need to scale this. Plans are in place to reach more areas. So far, the solar kiosks are self-sustaining, providing a lifeline to more people in need of an alternative source of energy. The firm is willing to penetrate most parts of the country which are far flung, where solar panels are not yet fully utilised as a source of energy.
HUSTLE EAST AFRICA
14
EXECUTIVE CORNER
INNOVATION
DRILLING MONEY FROM TYRES Beryl Munyui discovers her artistic talent and reaps big on creativity
Beryl Munyui.
P
assion is one of the most effective motivators when it comes to launching a business. Finding your passion is sometimes about finding your place. Such is the case for a veterinary doctor who quit her job to pursue the business of interior and exterior décor. “Despite having trained as a veterinary doctor, I always knew that I am gifted in the arts. The confirmation for this gut feeling came two years ago when a close friend consulted me for advice on how to design her office in a unique way,” explains Beryl Munyui. This request intrigued her and had her imaginations go wild. Her artistic spirit was at work and what resulted from this pursuit was an idea, too unique yet aesthetic enough to become a disruption in the interior and exterior décor industry. She had landed at the idea of recycling tyres to make furniture. This idea worked out so well and appealed to her customer who had love for recycled material. Her new idea became an instant hit. “The
different colours and the extraordinary shape of the resultant furniture drew more and more people.” After producing her first batch of office furniture made of purely recycled tyres, many people started calling her as they sought to customize their homes and offices. Before she knew it, her simple idea had turned into a business. With the recycled furniture business, she has never looked back. This is the reason she founded Nigida interior and exterior design limited to serve more people who appreciate use of the recycled furniture. “Operating an interior and exterior décor business requires more than just furniture. Customers will come requesting for an entire makeover of their spaces and so an entrepreneur, I had to think outside the box and bring in more products,” she explains. Nigida interior and exterior design today sells the tyre furniture, curtains, curtain holders and tiebacks for curtains. For interior décor, she also designs and sells furniture for homes, offices and schools. In outdoor décor, her firm does landscaping as well as design and sale of outdoors furniture, with tyre seats being a hot favourite for many people. Target market Munyui targets mostly people with small homes who in most cases have back yards and would like furniture for these spaces. Apart from these are offices, and anyone who appreciates the use of recycled materials as well as those who like blending art with nature.
15
HUSTLE EAST AFRICA
Due to the many customers that she has since acquired through word of mouth marketing and social media, she has turned her Edenville estate home along Kiambu road into a workshop. To make the business fit into her compound, she only makes the recycled furniture on order. “The tyre furniture can be quite voluminous and therefore require sufficient space for storage. That is why we don’t make the furniture without order,” she explains. Munyui says that she is happy that most Kenyans are slowly accepting to use items made from recycled materials, a big boost for her business. Turning an old tyre into an adorable piece of furniture can be a tedious exercise. The process The process of making the tyre seats starts with collecting the tyres. “We collect tyres or buy from people who have tyres that can no longer be used. However, they have to be neat, and without any wires hanging out.” Once they have been acquired, they are then cleaned of all the dust and any other dirt and then left to dry. The next step is to fix them together. For tyre seats, a mesh is then woven on top of tyres. Some tyres are fashioned into high end tables. This however, depends on the shape of the piece of furniture being made. The wire mesh is meant to make the seat comfortable and springy. The tyre
Despite having trained as a veterinary doctor, I always knew that I am gifted in the arts. The confirmation for this gut feeling came two years ago when a close friend consulted me for advice on how to design her office in a unique way
are then painted in different colours depending on the taste of the client. There are health hazards involved in this
process. “The paint as expected has a strong smell and therefore, while painting it is absolutely necessary to put on protective gas mask to avoid inhaling the paint,” she explains. It takes her up to two hours to make one tyre chair as long as she has all the materials ready. The process ends when she makes cushions for the seats. She points out that some customers prefer the tyre seats without the cushions. Munyui’s love for abstract art inspires her designs. Munyui works with various craftsmen to paint the tyres according to the clients’ specifications. “I get the craftsmen depending on the complexity of the furniture on order,” she adds. The tyre seats range from 10 500 shillings to 13 000 shillings depending on the size. She says that this business can be slow but it is a well-paying business. To reach as many people she can, she uses face book and word of mouth as a marketing tool. Advice to aspiring entrepreneurs Munyui’s experience in business has taught her that the best kind of business to venture in is one that involves passion. “By doing a business that one enjoys doing, one is most likely to do well in it, because every step of it is fun,” she says. Aspirations Her next goal is to scale up her business and reach as many people as possible. “I am planning to get the business to other parts of the country and beyond. There is so much potential especially in the corporate and I hope to get companies advertise their brands on tyre furniture, she concludes. HUSTLE EAST AFRICA
16
HUSTLE PROFILES
HEALTH CARE
Staff of Access Afya clinic.
ACCESS AFYA BREAKS THE WALLS IN HEALTH SERVICE The sustainable, affordable and cost-effective healthcare model By Caroline Mwendwa
T
here is a disparity in accessibility and affordability of healthcare for different socio-economic groups in Kenya. Access Afya, a social enterprise founded by Melissa Menke in 2012, fills this gap through the creation of access to quality health through sustainable care model. “Access Afya ensures that patient centred outcomes oriented, digitally driven primary healthcare is accessible to even
17
HUSTLE EAST AFRICA
the most underserved populations,” says Dr Daphne Ngunjiri, Access Afya’s Managing Director. The model Access Afya runs a chain of microclinics in Nairobi’s informal settlements and programs such as Healthy Schools to deliver check-ups, treatments and health education to children in partner schools. The clinics provide consultations, lab tests, chronic condition management, immunizations, family planning, antenatal
and post-natal care and urgent care to the community. Field Care Programs take the clinic to the people, working with factories, schools, or other community institutions. “We send a mobile team with health equipment in a backpack to deliver care at different sites so people don’t always need to come to the clinic to access healthcare,” says Jaclyn Boland, Field Care Manager. Education on health issues and concerns improves the communities’
access to health care services. Access Afya delivers this through community engagement to ensure patients have the information they need to make informed health decisions. Educating patients on their rights to care is a significant step towards a connected, informed and healthy society. Access Afya is keen on thequality of care and products given to the patients that visit or seek their services. “Access Afya is committed to stocking only quality products at all our facilities. Towards this, we work mainly with one supplier who guarantees quality by conducting multiple tests on all products,” says Arpana Philip, Health Operations Manager. Quality of care is also reflected in the staff at the clinics. Access Afya clinics have a licensed, trained and certified medical professionals who focus on building relationships with patients and the community in general. Data driven approach Access Afya is far ahead of others in terms of technology and this is key to their business model. All health and operational data goes to the informatics department, who analyses and disseminates the information. The supply chain department for instance,
to understand consumption, stock movement and trends while clinical data informs protocol adherence and disease prevalence in the community. The informatics arm of this organization is also crucial in the monitoring and evaluation of their projects. “Working in schools has helped a great deal in predicting the kind of health problems children have so we can develop and tailor the right solutions, treatment and education needed,” says Osob Osman, Monitoring and Evaluation Fellow. The innovation lab Access Afya’s innovation lab integrates emerging innovations into their health services with the goal of improving health, social and economic impact within their communities. These innovations could be applied through technology, partnerships, finance, new business models and improvements on current product services and delivery. One example of innovation Labs is Access Afya’s chronic care management program, AkibaYaRoho. This program combines financial innovation through a digital health and savings wallet service delivery model, innovation through community-clinic linkages and
collaboration with other health players – BoehringerIngelheim and Ashoka’s ‘Making More Health’ initiative. Why Access Afya stands out Access Afya stands out because they care about their patients and take the extra step to follow up with them to find out if they have recovered or accessed advanced specialist care within the health care system such as x-rays. This outcome driven approach helps patients achieve their health goals, while Access Afya learns from their data to improve the product and service delivery so patients can continually access care they want, need and afford. Access Afya’s model has significant impact not just for the health of patients, but even greater economic impact as a cost-effective model for universal health care delivery that can be replicated and scaled globally. Future plans Access Afya continues to develop and improve its current operational model. It is currently operating within three communities in Nairobi: Mukuru Kayaba, Mukuru LungaLunga, and Kiambu. By the end of the year, they will be in three new communities and plan to grow faster in 2018 going forward.
HUSTLE EAST AFRICA
18
HUSTLE EAST AFRICA
HUSTLE EAST AFRICA
LIFESTYLE
MAKE-UP
PILING COINS IN THE BEAUTY INDUSTRY All the way from Burundi, Sally Kamenge travelled to Kenya to make a life and settled for the personal grooming industry; she tells of her exploits as a make-up artist
I
t is not always a smooth ride for most people whenever they have to do their makeup. While applying makeup seems like a simple exercise, gaining perfection in this art takes lots of expertise and practice. This is the reason why the beauty industry around the world continues to grow as demand for makeup artists keeps on rising. But even with good makeup artists, there is usually no guarantee that a person will get the exact results that they would like. Indeed, the beauty industry is as personalized as any other personal grooming industry. This is the gap that Sally Kamenge, a Kenyan with an origin in Burundi saw when she decided to venture into the industry a year ago. “Seeing people do their make-up wrongly motivated me to venture in this business.” Interestingly, Sally has no formal training in makeup and beauty. Her creativity supplemented with a little bit of research from beauty sites has helped her to come up with innovative ideas that make her services stand out. “This business is based on passion, I love doing make-up and I am happy that our services have been received very well.” Located at Imenti House along Moi Avenue in Nairobi, Sally’s salon offers services to different kinds of people. She also does bridal make up for brides, grooms and bridal parties at competitive rates. In addition to these, she offers competitively priced beauty enhancement services for customers before a photoshoot and videography. “I have cut a niche in the industry, you just need to do it well and offer good quality. That is what keeps us competitive
21
HUSTLE EAST AFRICA
Sally Kamenge, make up artist.
in the market. Our prices are also customer friendly since we start with a package of Sh3,000 for bridal make-up, photo shoot and even videography,” she offers. While most people would think make up was just for the face, it involves many other areas. For Sally, she also offers hair and nails make up services. Considering the many makeup artists competing for customers in Nairobi, make up jobs are usually not many for start ups. “The frequency of jobs depends on the seasons. But I have managed to have consistence by targeting bridal parties since weddings happen every now and then.” Still with the cut throat competition, she manages to get an average of between 20 to 30 jobs every month. “It is not hard getting customers when you do a good job,” she quips. Sally mainly uses social media to market her services. In as much as it is a personalised business, makeup artists cannot run the show alone. “I have people working for me and I also do it myself.” The beauty industry has not always been Sally’s dream career. At a young age, she wanted to become a professional tennis player. However, this changed overtime and passion drove her into the current occupation.
The young entrepreneur says that she did not receive the necessary support from her parents to pursue her dream career, and cites this as the reason why she decided to look for something that she enjoys doing. She advises parents to always listen to what their children dream of becoming and help them realise their dreams. “More often than not, parents choose for their children what to do unaware that if they gave their children liberty to make their choices, and support them, they would lead more fulfilling lives.” Sally points out that finding a footing in the beauty industry was not easy. She had to raise funds to establish a business, and raising capital was one of her biggest challenges but she was fortunate enough to get help from friends and family. “Even though in the beginning it was an uphill task, family and friends came to my rescue and I was able to take off.” There are many other challenges facing startups like hers. But as she observes, once the business has gained traction and the entrepreneur knows who his/her clients are, and how to best retain them while attracting more customers, then there is no cause for worry. The beauty industry is an art industry and you have to
stand out. You need to be What makes her to stand out is the excellent customer care services that she offers. It takes passion and hard work for one to succeed in any business and Sally has both. It also takes experience to run a successful business. For Sally, she worked in the food industry for two years before starting her own business. The lessons she learnt came in handy when she ventured into the make-up industry as a business owner. “From my previous job, I learnt managerial skills that I apply in my business on a daily basis.” While not applying makeup on people’s faces and nails, Sally unwinds by dancing and singing, her two main hobbies anchored on her love for art. As a young entrepreneur who has tested the waters of entrepreneurship, she has some advice for aspiring and practising entrepreneurs. “Resilience is a must have if one is to succeed in business.” Sally attributes part of her achievements as a make-up artiste to networking with the right people. Even though she considers her business a start-up, the youthful entrepreneur is as ambitious as ever. In the next five years, she hopes to have outlets all over Africa. “I also want to expand into the fashion industry and modeling,” she enthuses.
HUSTLE EAST AFRICA
22
MAIN STORY
ENTREPRENEURSHIP
Nurturing the Spirit of Entrepreneurship By The Hustle Team
I
n Kenya, the effects of unemployment have already infiltrated all spheres of life. High crime rates among other social ills, can all be traced back to unemployment. Indeed, Kenya has the dubious reputation of having one of the highest unemployment rates in East Africa, if not Africa. The statistics are grim.United Nation Human Development Report Index of 2017, Kenya’s unemployment rate stands at 39.1%. As it stands, unemployment is a waiting time-bomb. Fortunately, there’s a way out. For years, experts, academicians, and economists have all pointed to entrepreneurship as a panacea to unemployment. Because of the obvious mismatch between the education system and the job market, many are the times when graduates fall short of expectations at the job market. Over and above other solutions, entrepreneurship looks like the most promising, In fact, most of its proponents are seasoned entrepreneurs who have weathered storms to make it in business. If anything, they should be enough motivation for the youth, to lure them into starting and running businesses. Ideally, one enterprise creates a job opportunity for the owner but when it grows, it can employ tens or hundreds of others. The multiplicity of these ideas is what makes researchers bullish on the endless possibilities that entrepreneurship brings. However, time and again, history has shown that entrepreneurship is not for the fainthearted. Take the ever refreshing story of China’s richest man, Jack Ma. The chairman of Alibaba Group, an
23
HUSTLE EAST AFRICA
e-commerce giant, Ma, has surmounted great odds on his way to success. In his formative years, he failed his primary school examinations twice. This was followed by three more failures as he struggled through middle school. After completing his secondary school exams, Ma tried to apply for universities, but he failed the entrance examinations thrice. Not one to give up easily, Ma applied to join Harvard, writing a total of ten application letters which were rejected. His schooling life was marked by failure. Even after completing his bachelor’s degree at the Hangzhou Normal University, he struggled to get any job. In fact, for a record 30 times, he failed to get a single job. Failure, which had become part of his life, did not deter him from becoming a successful entrepreneur. He is now among the world’s richest men, with a net worth of $25 billion. Another entrepreneur, Mark Zuckerberg, the founder of social media platform Facebook, started from the bottom before striking his entrepreneurship nirvana. Before launching Facebook, Zuckerberg had called five of his friends to fine-tune his idea. Only three turned up. However, after launching the social network, it went on to become one of the largest, most profitable businesses in the world. Locally, outstanding entrepreneurs have weathered great storms to succeed. Most have tasted defeat many times, others have made personal sacrifices in pursuit of entrepreneurial success. One of these is Devki Steel Mills founder Narendra Raval. Mr. Raval started as a Brahmin priest before trying his hand in business. With no money to start a proper business, he settled for a small hardware shop in Nairobi’s Gikomba market. However, after years of hard work, he managed to make some profits which he ploughed back to the business. Before long, he was making good profits, but there was a problem. First, he was getting large orders for construction materials but he could only source the materials from manufacturers, thus minimizing his profits. Unsettled, he decided to start manufacturing iron
sheets and that is where his star started shining. Mr. Raval grew his Devki brand slowly but surely, overcoming great obstacles like cash flow problems and inadequate funds to grow the business.. At some point, he says, his firm almost went bankrupt, yet he was able to convince his employees to support him. Regardless of the challenges, Devki is now one of the biggest steel manufactures in East and Central Africa. Devki’s brands include Maisha Mabati and Simba Cement. Mr. Raval’s entrepreneurship story is laced with lessons that upcoming and aspiring entrepreneurs can use to kickstart their businesses. What makes entrepreneurs stand out? “Positive thoughts and persistence in whatever you do,” says Narendra Raval. Murori Kiunga, a business trainer concurs. He adds that persistence is a key quality in entrepreneurship, as it helps entrepreneurs overcome any obstacle they find on their way to achieving their goals. Dr. Manu Chandaria, a wealthy businessman and industrialist says that success in business can only be achieved through “hard work, vision and persistence.”His sentiments are shared by Dr. James Mwangi, the CEO and Managing Director of Equity Bank. He says that super entrepreneurs are innovative and disruptive. “They are always passionate about their businesses. They are in business for the long haul,” says the one time EY Entrepreneur of the Year. However, possessing such traits does not make you an overnight super entrepreneur.At the start-up stage, they have to battle challenges like inadequate funds to sustainably run the businesses. And this is the bane of local entrepreneurship. An Intellecap entrepreneur says that it is difficult for local startups to access capital. Dr. Moka Lantum, who runs iSikCure, a drug distribution firm, says that compared to developed countries where the startup ecosystem is supportive, local entrepreneurs do not simply have such backing, the reason
they struggle to grow and sustain their businesses. “Crowdfunding is a concept that works very well in developed countries like America. It’s easy to raise capital from friends and family in those countries than it is locally.” He says that’s the main reason local start-ups rely on investors, who again demand so much from them, sometimes making it hard (for entrepreneurs) to actually access any form of funding. The general lack of local investor support, according to experts, could be the reason why entrepreneurs shy off from venturing into business. Conclusion There are many challenges facing startups in Kenya, the reason most of them do not see their fifth birthday;. But all hope is not lost. Successful entrepreneurs have shown that it is doable. It just takes the right mindset to succeed in business. However, while entrepreneurship is touted as a potential solution for unemployment and stagnated economic growth. The youth hesitate to embrace it. Many are the times when most experts lay the blame on the education system. Some say that the system advocates for white collar jobs and does little to prepare students for a career in entrepreneurship. “Education system has no direct relationship with entrepreneurship. Unless it’s combined with experience, it can only arm students with soft skills,’ says Prof. Peter Wanderi, Director of Quality Assurance at Mount Kenya University. He says that successful entrepreneurs are more street smart than book smart. Given the huge number of successful entrepreneurs who never went to school, opinion is divided over whether education plays an important role in molding entrepreneurs. Dr. James Mwangi says that instincts and gut feelings, which help entrepreneurs to make the right decisions for their businesses, cannot be taught in schools. However, he says that education is an important ingredient for entrepreneurship, but only if the entrepreneurs themselves turn the knowledge they get in schools into analytical skills.
HUSTLE EAST AFRICA
24
MAIN STORY
I
magine a scenario where a group of people sit in a lobby awaiting to take turns to face a panel of interviewers for a job. Each candidate crossing their fingers, hoping to make an impression that wins them the opportunity. Fredrick Ouko, a Political Science and Sociology graduate and certified social innovation manager once found himself in this situation. But when his turn to face the panel came, he came to face with a reality he didn’t anticipate. Being a person living with disability, Ouko’s session was evidently short compared to the candidates who went before him. And this struck him as blatant discrimination. He was a graduate with experience enough to merit a hearing. This he says is the predicament of many people across the world who live with disability. Despite their competences, they are considered unfit for job opportunities, even when their type of disability does not limit their performance. This experience prompted Ouko to launch Riziki Source a social enterprise leveraging on technology to help people living with disability connect with job opportunities. The App also made it easier for employers to locate physically disabled employees. “Through experience, I realised that people have this perception about people with disability, that even though they look for jobs, they seek them not because they qualify, but because they seek sympathy,’’ says the social entrepreneur who is now pursuing an MBA in social entrepreneurship. His venture therefore seeks to dissuade this perception since there are so many people living with disability that have trained and acquired skills for the jobs they seek. How it works Riziki Source operates through a mobile phone application and an online portal and seeks to serve both employers and job seekers. For the mobile phone application, an individual looking for a job sends an SMS ‘kazi’ to a short code 21499 and the app responds through questions about the identity, location, level of education, type of job being looked for and the type of disability of the applicant. On answering these questions, the team at Riziki Source opens an account for the person on the job seekers platform, with the provided details. From this platform potential employers can see the people
25
HUSTLE EAST AFRICA
ENTREPRENEURSHIP
IN KENYA, AN APP LINKING PHYSICALLY DISABLED JOBSEEKERS TO EMPLOYERS Riziki Source is a blessing for people with disability
Fredrick Ouko.
applying for jobs, their qualifications and nature of disability which helps them offer supportive measures for them if they happen to be candidates for their organization. In the same way, employers post requests for various categories of employees they wish to recruit. “Some employers would like to recruit people with disability especially to fulfill the requirement of 5% job opportunities for the people living with disability in every organization but the challenge could be where to get them from. Through Riziki Source, we have been able to connect such employers with potential employees. In case someone is not in a position to use the digital approach, there is a provision for them to drop their Curriculum Vitae to the office and from there the documents are digitized and uploaded on the platform. The Web based platform serves those that are in a position to access internet and send their details via internet. Other services Apart from connecting jobseekers living with disability to potential employers, Riziki Source also offers services such as training and facilitating the applicants. “We offer training sessions to our registered members and others including members of staff of an organization that wants to train its employees on how to coexist with a colleague or colleagues living with disability. For applicants, the main lessons entail how to best write a curriculum Vitae and how to go about interviews in order to secure jobs. Riziki Source also provides services to do with disability audit, where institutions ask for this service to determine how they can offer a supportive environment to employees with disability in terms of building structures and technological support. Also, before interviews, potential employers are informed on ways to best prepare to receive an interviewee with disability so that the set up can be friendly and they can be able to undertake the interview without feeling limited by factors such as accessibility of the venue, and availability of the right technological mechanisms. For example, someone with a condition of blindness would need a different kind of interview set up from someone without, and this where we come in,” says Ouko.
The trainings also entail lessons about the legal requirements of the employer to the employee living with disability. In addition to training, Riziki Source supports successful applicants who may have landed a job that requires them to have certain tools such as computers yet they can’t afford them immediately. “In such cases, we lend the computer, and an office space if required for the first few months until the employee can fully sustain themselves. Another alternative is purchasing the computer for the person to repay as time goes. This being a social enterprise, as Mr Ouko explains, there is need for sustainability. “To achieve this every person who secures a job through our intervention pays the organization 50% of their first salaries.” Riziki Source still being a young venture has connected over 20 people and conducted training for 200 others and still counting. Challenges The journey has not been all roses and no thorns but a learning process. Just like every other start up, acquiring the first capital was an uphill task, but as Ouko recalls, he was lucky to get help through a government official who felt like this is an idea that ought to be supported. This he says took them two years. He also laments about the high cost of advertising. We need to invest in marketing but funds limit us.” In addition to these are the costs of maintaining the tech component for which they have regular payments to make. Save for the costs, one other major challenge, is getting employers to sign up. “This whole set up is totally dependent on employers willingness to work with us. The process of creating these partnerships can take longer than desired but we have to push for them,” explains Mr Ouko. One major way of doing this he says is investing in meetings because this is where one is likely to meet potential employers and explain why the partnership is a win win. “Winning over an employer can take as long as two years, but as long as you maintain the PR, this is doable.” Finally, the discrimination against people living with disability is still rife. As Ouko puts it, it’s so engrained in
people’s minds that whenever they see a person with disability, they instantly think of a beggar, oblivious to the fact that this person could actually be doing much better than they are. This is still a challenge especially for Riziki Source who are looking to get job opportunities for them. In the pipes “We want to build a brand that is recognized globally such that when employers want to recruit an employee and is considering giving priority to a person with disability, they have us in mind.” Secondly, Riziki Source hopes to have physical presence in all counties in order to reach all without the geographical barrier. “We get requests from various places and would like to be able to serve our clients from a nearer office.” Even beyond Kenya, Riziki Source has aspirations to traverse borders to other countries to provide this service to even more people. Considering the advancing technology that makes it possible for people to work from different locations, Mr Ouko says that in cases where this is possible, there is need for people with disability to be availed this alternative of working from home and this is among the things Riziki Source is planning to advocate and facilitate for. Insights For him, the future of employment for people with disability is IT. IT makes life more convenient and this is what Riziki Source is all about. While it seems difficult for someone with a certain disability to move around looking for jobs even though they have skills, Riziki Source makes it a lot easier for them to link up with potential employers and even prepare them for a job. “If indeed the government is working on poverty eradication, then they must have concern for people living with disability as these are considered the poor of the poorest.” The best way to cater for them, Ouko says is through employment since someone with an income can determine their future. Having them rely on hand outs is impoverishing them the more as these are short-lived and make them dependents while they have skills that they can use to earn an income just like anyone else.
HUSTLE EAST AFRICA
26
MAIN STORY
Entrepreneurship
Mogwli Mentoring: Preparing the Next Generation Entrepreneurs Mowgli Mentoring, an award winning organization was founded to support the people driving economic and social development through mentoring By Amos Wachira
G
lobally, entrepreneurship plays a significant role in employment creation. A good example is Kenya where according to the 2017 Economic Survey by the Kenya National Bureau of Statistics, only 85,600 jobs were created by the formal sector and government, compared to the 747,300 jobs created by the informal sector (popularly known as the JuaKali sector). As the data shows, entrepreneurs present a formidable solution for the perennial unemployment challenges facing many African nations. When entrepreneurs succeed, economies thrive. They therefore need a support system that nurtures their potential and an environment suitable for sustainable entrepreneurship to take place. One of the key components that entrepreneurs could benefit from is mentoring. However, the understanding around mentorship, its benefits and impact is still not widespread across most developing nations. Holistic approach Mowgli Mentoring, an award winning organisation was founded to support the people driving economic and social development through mentoring. Based upon the European Mentoring and Coaching Council (EMCC) accredited syllabus, Mowgli’s holistic approach to mentoring seeks to support both long-term professional and personal
27
HUSTLE EAST AFRICA
Kathleen Bury, CEO of Mowgli Mentoring.
development. Kathleen Bury, CEO of Mowgli Mentoring explains that when it comes to entrepreneurs, mentorship should ideally focus on their personal development, which in turn spurs business growth. Though different, this approach to mentoring has seen the organisation have great impact within the Middle East and North Africa (MENA), a region they predominantly served over the past 10 years, supporting over 1,800 mentors and entrepreneurs before setting out to expand into Sub Saharan Africa (SSA) this year. Their expansion into the region included an increased focus on women, youth and corporates in addition to entrepreneurs. So far, their move to SSA has kicked off in high gear as they are already running their first regional programme in Ethiopia, in partnership with blueMoon Ethiopia, the first youth agribusiness accelerator in the country. The organisation also recently spread its wings to the west with a mentoring programme co-developed and funded by the World Bank Group aimed at empowering climate innovators hosted by the Ghana Climate Innovation Centre (GCIC). Statistics show that seventy percent of mentored businesses survive more than five years, double the rate of nonmentored small businesses over the same period and this ties in with why Mowgli is a passionate advocate for mentoring as well as their entry into this region. Speaking to Biashara Leo magazine, CEO Kathleen Bury shared: “We have come into the region to support the development of human capacity amongst the people driving economic and social change.” Currently, entrepreneurship and mentorship are key buzzwords across the African region. However, the level of awareness about mentorship has remained low. “There are many words which are often confused with mentorship including: coaching, consulting, therapy, training, advisory and others. Coaching for instance is a paid service, mentoring on the other hand, should not attract any transactional cost. It is not about somebody showing you what to do, it’s about empowerment. During the mentoring process; mentors ask mentees questions to help deepen their awareness and the agenda is mostly driven by the mentee,” explains Kathleen.
Currently, entrepreneurship and mentorship are key buzzwords across the African region. However, the level of awareness about mentorship has remained low
To address the mentorship gap, Mowgli has developed a mentorship curriculum with four key components which include: raising awareness about mentoring, mentor and entrepreneur recruitment, training of mentors, matching of mentors with mentees and a period of six to twelve months of on-going mentoring relationship building support, facilitation and supervision. Support systems Speaking on lessons learnt over the years and the need to incorporate mentorship as an essential part of a balanced entrepreneurial support system; Kathleen shares: “We see that entrepreneurial ecosystems need investment to develop four pillars to truly serve entrepreneurs to grow successful and sustainable businesses and therefore support the creation of employment. The first pillar is the environment, and this encompasses peer to peer groups, parenting, role models and all levels of education. The second one is financial capital. Thirdly, infrastructure – this
includes government regulations, internet access as well as access to incubators and accelerators. The fourth pillar is human capital development and this is where mentoring comes into play.” Mowgli believes that while a lot more can be done, the ecosystem in Kenya supports entrepreneurship. “People here are very enterprising. We also have a number of very successful business people who can act as mentors, so the pipelines for entrepreneurial mentoring programmes are present, leading to higher chances of a positive return on investment being generated from them.” Chemistry With a strong focus on mentorship, the firm has created a fine niche in the fifteen countries it has served. “We stand out because we look at entrepreneurs holistically, as people as well as business leaders. Mowgli’s volunteer mentors are trained to listen, guide and inspire. Our matching process is also unique as we look beyond a good CV and accolades in a mentor, our matching process is based on chemistry as we are seeking to develop long-term trust based relationships. It doesn’t matter how well a potential mentor and mentee may fit on paper; real mentoring relationships are not only based on the mentor’s professional ability to impart knowledge, but on the rapport between the mentor and mentee,” states Kathleen. Various estimates show that 80 per cent of start-ups die within the first five years of operation. In the few years that Mowgli has provided mentoring, it has managed to overturn this worrying trend, showing that with mentorship, start-ups can succeed. To put this into perspective, 89 percent of the enterprises led by Mowgli Entrepreneurs remained operational after their year of mentoring and managed to create an average of 3.3 jobs and have an employee retention rate of 91% during their Mowgli facilitated mentoring year. ”Jobs can only be created when there is economic growth at the macro level. Essentially, business growth can only be achieved when the leadership qualities of entrepreneurs are strengthened to build their resilience, motivation and confidence and this is why we believe mentoring should be invested in and solidified as a key component of the entrepreneurial ecosystem,” explains Kathleen. HUSTLE EAST AFRICA
28
MAIN STORY
Entrepreneurship
Why do Local Start-ups Find It Hard to Access Funding? A Sankalp Entrepreneur Shares His Story Entrepreneurs have to walk a tight string to make in in business. They have to overcome great odds stacked against them on their way to success. Little wonder then, that more than half of start-ups die in the first five years of business. Hustle Magazine interviews Dr. Moka Lantum, the CEO and Chairman of Microclinictechonologies Limited, a successful medicine distribution start-up. Excerpts herewith:
Dr. Moka Lantum, the CEO and Chairman of Microclinictechonologies Limited.
29
HUSTLE EAST AFRICA
Hustle: Give us an overview of your entrepreneurship journey? Moka: I started ZiDi in 2011. Its a local firm which supplies medicines to those who it most. Our main objective is to to improve access to medicine. ZiDi is designed to improve the quality of maternal and child health-care by facilitating the diagnosis and treatment of common diseases that affect women and children. It’s the only E-health solution in Kenya which is endorsed by the Kenya Medical Supply Authority, World Bank, Microsoft and Yahsat. It’s also approved by the Ministry of Health in Kenya. Hustle: How was your launch? Moka: Our first product launch was a total failure. Through funding from international donor organization, we piloted the product in big hospitals. This allowed us to develop a unified platform for hospitals and dispensaries. Hustle: Launching a start up is always a challenging exercise which requires grit, determination and resilience. Which challenges did you face and how did you overcome them? Moka: The main challenge was commercializing the business venture in the private sector. The iSikCure platform sought to be the first responders in partnership with local governments. But marrying the two systems wasn’t easy. First, our platform focused on non communicable diseases, while the government focused on maternal child health, HIV/Aids and Malaria. We realized
that most households have people who need more medicine. Another realization was that not everyone was rich enough to own a mobile phone. Prescription was also a key area of concern since most people did not understand how that worked. To solve the issues on the ground, we decided to build hubs near dispensaries as part of our distribution strategies. Hustle: What has been your interaction with the Sankalp Forum? Moka: We applied in October 2013. We were later informed that we had been selected to pitch. After that, we were assigned mentors and after pitching, we emerged as second runners up. It was a huge endorsement for us and we got good feedback. Our initial pitch was selling to government but we realized that the government was good for procurement contracts rather than for entrepreneurship. The investor ecosystem, however, doesn’t look at tenderprenuers favorably. Hustle: What were the key benefits that you gained from the summit? Moka: Sankalp helped us change our business model. It also helped us to scale. Hustle: Any lessons that you learned from the summit? Moka: First, most local businesses start form need. Health care, energy, Agro, financial inclusion are impact spaces. Entrepreneurs fill that gap.
Secondly, I learned how to acquire customers. The cost of acquiring them should be minimal. Finally, I became aware of the various bottlenecks to growth.One of these is funding. For most entrepreneurs in Africa, funding comes as a gran. We simply have no access to other kind of funding, like crowd-funding. Crowd-funding doesn’t work well here compared to abroad. Hustle: Why is it hard for local startups to attract funding? Moka: It’s two fold. First, we are a capital driven market. People will only put in the money when the see the asset. Secondly, service oriented entrepreneurs always struggle to get funding. You don’t get funding when you don’t have collateral. That’s why you have to look outside to get help from investors. Local enterprises find it hard because they have to reach a certain capitalization to access local capital. Hustle: What are your future plans? Moka: I would like to first of all maximize the current channel, then build ISikCure brand to start attracting partners. We also have plans to make the brand more sustaining. To make the brand self sustaining, you need to mind into shape. It takes three to seven years to build a brand.
HUSTLE EAST AFRICA
30
Discover how we provide innovative investment Discover how we provide innovative investment solutions for your financial assets.
solutions for your financial assets. The African Alliance Group has a unique pioneering philosophy that is aimed at providing our clients with solutions within a local context using our on-theThe African Alliance Group has a unique pioneering ground professionals.
philosophy that is aimed at providing our clients with solutions within a local context using our on-theAfrican Alliance Asset Management provides tailored ground professionals. solutions for ‘in country’ clients plus specialist investment strategy funds.
African Alliance Asset Management provides tailored solutions ‘in country’ We arefor outcome driven andclients add realplus value specialist by drawing on, andstrategy integrating our collective skills and experience. investment funds. We provide clients with innovative solutions on a segregated basis or through our dynamic range of unit We are outcome driven and add real value by drawing trusts.
on, and integrating our collective skills and experience. We provide clients with innovative solutions on a segregated basis or through our dynamic range of unit trusts.
www.africanalliance.com
For further information, contact us at African Alliance Kenya Investment Bank, 4th Floor, Kenya Re Towers, Upper Hill,contact Nairobi us at For further information, +254Investment 20 2777 000Bank, African Alliance Tel: Kenya 4th Floor, Kenya Towers, Upper Hill, Nairobi email:Re info@africanalliance.co.ke
Tel: +254 20 2777 000 email: info@africanalliance.co.ke
FARMING
ANIMAL REARING
FRANCIS WACHIRA EMBELLISHES HIS FARM WITH RARE BREEDS You would think that only wild animals attract tourists, until you hear about this animal farm By Caroline Mwendwa
W
hile most farmers in the urban space are preoccupied with crop farming made possible by the vertical method of farming, Francis Wachira has deviated from this norm to establish himself as a renowned livestock farmer within Nairobi. His carefully managed farm at Makadara, has attracted attention from far and wide even to a point of being called upon to go to the US, on an exchange program. “When my farm was visited by some white men, they loved what I was doing with this space, and invited me for an interview which would determine my eligibility for the trip. I thought this was a joke but indeed the interview happened and then the trip,” recalls Wachira. During this program, he had an opportunity to demonstrate to various people from the first world countries that urban farming is doable. Wachira’s farm is one of its kind.
Stocked with a myriad of domestic animals and birds. On a row of houses that he had built to rent out, Wachira has made partitions to host hundreds of rabbits, over fifteen dairy goats, several guinea pigs, chicken and geese. His choice of farming is definitely unique and that is what makes him stand out. “The problem with Kenyans is that they want to do what has been tested by others and proved profitable, no one wants to try out a new thing, they forget that what works for one farmer may not work as much for the other” he points out explaining the reason he settled for the rarely reared breeds. A training he underwent alongside his fellow church members spurred this idea. “Back at our church, an entrepreneurship training was organized by the leaders to help people live self-dependent lives and there we were encouraged to have two business
ideas to try out.” Even though his first ideas didn’t kick off as expected, Wachira decided to venture into agri-business. “At that time while I was still soul searching for the right venture, I came across a farmer within my neighbourhood rearing rabbit.” That same week, the area MP, convened a meeting encouraging people to embrace agribusinesses; his selling point was rabbit keeping, and these two incidences influenced his decision to keep rabbits. As time went by, Wachira diversified to include dairy goats, geese, guinea pigs and chicken. “I keep the rabbits and guinea pigs for meat and the dairy goats for their milk. “In the past, very
Francis Wachira, farmer.
33
HUSTLE EAST AFRICA
few people especially in the urban knew about the benefits of rabbit meat but this is gradually changing,” observes Wachira. This is evident in the stable market he has eventually secured with Tuskys Supermarket, a chain store. “I have been diligent in looking for a market for my rabbit and this search was not in vain as I successfully managed to partner with various branches of Tuskys Supermarket,” he says. One rabbit goes for Kshs 700 to Kshs 1000, depending on the size and on a good season he can even sell over 100 rabbits a day. With this kind of demand, Wachira has become an agent between the farmers keeping rabbits and the market. “I get rabbits from all over the country and supply them to various hotels and this major supermarket.” The same goes for the guinea pigs. Even though he acknowledges that not many people appreciate the value of guinea pigs as a source of meat, Wachira is positive that people are slowly changing their perceptions. “I am encouraged to go on rearing these kinds of domestic animals hoping people will someday embrace them in their meals just like they have accepted chicken,” quips Wachira, noting that until very recently, people did not think that chicken are edible. His dairy goats provide milk both for domestic use and business. Goat milk is known for its cholesterol free value and power to boost the immune system. For these two main reasons, it sells at a higher price as compared to cow milk. As Wachira explains, he enjoys keeping goats as they require minimal space and feed less. From the goats, Wachira gets over 15 litres a day which he sells at close to Kshs 200 each. The major hurdles that Wachira has to tackle in this kind of farming is the unavailability of specific feeds and veterinary services for his stock. “If any of these rabbits or guinea pigs or geese fall ill, there is no medication or even veterinary specialist out there meant to treat it. I can only buy medicines or acquire services meant for an animal that is closely related to it,” he explains. And this same situation goes for the feeds. However, Wachira has maximally utilized his farm by planting fodder that is eaten by rabbits, the goats, and the guinea pigs. Apart from these plants, the farm is radiant with an assortment of fruit
trees and vegetables. For instance, at the periphery of this farm stands a Brazilian cherry tree, with the red ornamental yet sweet cherries hanging from every branch. Beneath this beautiful tree are herbal plants such as mint leaves, and other crops some from Mozambique and South Africa. “Whenever I encounter a unique crop, I bring it over and plant in on my farm.” Other fruit trees on his farm include mango trees, paw paw trees, guard trees, thorn melon, and pumpkins among others. Wachira’s assorted farm confirms his passion for unique farming. “My family feeds from this farm, and from its abundance I make profit and that is how I have managed to educate all my children,” explains Wachira, whose children have all been through university. Apart from farming, Wachira has invested some of his time to those willing to go into agri-business. “I conduct a lot of training to willing people who come over to learn from this farm,” he says pointing
to benches just beside the farm where these sessions take place. As he further explains that it is always wise to learn from a fore runner. Among the things he trains on are how to build for rabbits, what to feed them on and the availability of market. His advice to farmers is that they should go for what they are passionate about and not just do what other farmers are doing. “If you do a kind of farming that draws your heart, you will not lose patience when returns take time to mature.” Some people may be afraid to rear so many animals within an urban setting due to certain social prejudices and social restrictions. To such, Wachira assures that the law does not prohibit it at all as long as one is conscious enough to maintain cleanliness and a suitable environment for the animals.
HUSTLE EAST AFRICA
34
FARMING
Entrepreneurship
COWSOKO: JUST TAP TO BUY OR SELL LIVESTOCK The search for a domestic animal buyer or seller need not be daunting anymore, Cowsoko has a virtual marketplace for the trade
By Caroline Mwendwa
H
aving worked as an intern in training farmers, Victor Otieno had first-hand experience of what farmers need and invested on this idea to establish Cowsoko, which helps farmers sell and buy cows, goats, sheep and lately carmels and donkeys. “Every time I went to the field to train farmers in various places I would come back and several people would be waiting to ask me where they can get good livestock from,” explains Otieno. This brought him to the realization that there was a market need, buyers need to be connected to the sellers on the ground, and being an IT enthusiast, the answer was right before him. He launched Cowsoko in the year 2015 and apart from linking buyers to sellers, Otieno used his experience and expertise to offer other services to clients registered in Cowsoko including training the farmers on how
35
HUSTLE EAST AFRICA
to best take care of their animals so that they can sell them at higher prices and buyers get value for their money. How Cowsoko works Cowsoko is an application which is web based and mobile phone based. The web based app is mostly used by farmers who want to check the kind of livestock on sale, while the mobile phone app is used by sellers who take pictures of the animals they want to sell, upload and share them on the platform. Once there is a buyer all sellers are notified of the buyer by the app. The people mostly targeted by Cowsoko are those living in the urban and have a piece of land in the rural especially the middle class. “Our model is very beneficial both to sellers and buyers. To start with, most buyers think that buying the cow is the first step towards dairy farming. Unknown to them is that this ought to be the third stage.” When dealing with buyers, the
process starts by visiting the buyer and guiding on the house structure for the cow and further training the buyer on various things before they even purchase the cow. “For instance, we advise the buyer to do a price list of things they need to buy, and come up with a business plan that shows at what point certain things are likely to be experienced.” One other very important thing Cowsoko does for its clients, is linking them to seasoned dairy farmers to visit their farms and learn on site various things among them being what to expect as a dairy farmer. Cowsoko has customized services for bulk buyers, whereby, a buyer wishing to purchase a herd of cattle, states an average specification of the kind of animals they want to buy, and the Cowsoko team searches for a buyer offering such kind of animals and refers a field lord to the site to assess the livestock and see whether it matches the requested type. “We have a field lord in most parts from where we get sellers of livestock, who withhold the livestock before they are transported to the buyer,” says the Animal Science graduate. One major advantage of working with Cowsoko is that not only are things verified for the buyer and the buyer prepared to start handling the animals once (s) he has bought them, but they also arrange for transport to the buyer. “We have trucks in several areas, even though they don’t belong to us, we have partnered with various logistics firms who provide the trucks for transport on demand.” Cowsoko is based along Ngong Road and has partners in Kinangop, Eldoret, Makueni and Isiolo. Apart from live animals, Cowsoko is also dealing in beef, where they link beef cattle sellers and buyers. Donkeys are especially sold on this platform for beef. “One thing that has been hitting farmers hard is having to deal with brokers, who take advantage of them by buying their animals at very low prices and selling them to slaughters at very high prices. We intervene by educating farmers on how to value their animals comparing the weight of the animal and the price a kilo of meat goes for and computing these figures to settle on the value of the live animal.” It is absolute convenience as the app also allows for the buyer to pay directly
via M-pesa, once they have identified the ideal animal. A job hub Cowsoko has provided employment to 35 people already and has several other temporal staff members who work in support of the clients. “We are very keen in recruiting young graduates before they have even graduated from school.” Being an alumni of Egerton University, Otieno has had a good opportunity to share the dream with other young people pursuing courses on animal husbandry and other related courses. “We regularly go to the institution, and conduct training to groups of students from whom we recruit staff to Cowsoko.” Hurdles First, acquiring capital was a tall order. Otieno observes that there is a lot of talk about supporting entrepreneurs but the moment when someone badly needs the financial support they realise that it is not as easy as it sounded. The requirements for acquiring a loan for instance, are strenuous especially to young people who may not have property to offer as collateral. “If for example you
are undertaking a venture to do with technology and the only collateral you can think of is a family property like land, the custodian of the title deed is likely to be someone of a different generation and whose decision of letting go the family fortune on a business idea they cannot relate to is unlikely.” As such therefore, how to get the startup capital can be a great ordeal. Cracking through a new venture takes time especially one in which technology is involved in the most unlikely ways. This however did not deter Otieno from actualizing his idea. “People did not see how one can sell cows online but we strived to change this view into a possibility until they could trust the process.” But the main challenge for Cowsoko is falling short of the demands of the buyers. “We are overwhelmed by buyers since there are so many people willing to buy but few sellers.” The main problem he says, is that most sellers are selling the least productive cattle while the buyers want the best. This poses a huge challenge in linking these two. “In areas where there are no financial structures, this being a field involving cash
Victor Otieno, proprietor, Cow Soko.
transactions, handling the cash is a risky affair,” he says. Otieno however clarifies that Cowsoko deals only with affordable livestock while ensuring quality. The most expensive animal should be Ksh 120,000. Lessons learnt As an entrepreneur leveraging on technology, Otieno says that there is a huge gap between what the internet projects and what the market needs. “Developers may be creating a highly complex and potentially beneficial app for farmers but until they place themselves at the level of the farmer, they are likely to come with an app unfit for farmers. He also warns aspiring entrepreneurs that carrying the tag ‘entrepreneur’ may sound prestigious but there is so much effort and commitment that comes with success and the support systems are few. Nevertheless, his advice is that if one has a business idea, the best time to put it to action is now. “Just get started and don’t plan so much as things are likely to be totally different from what you project them to be.” The secret he says is to have patience and not looking at the money. “People make the mistake of focusing on investors, hoping they will come and turn their business around, but forget that Kenya is different from many other developed countries where investors are looking for entrepreneurs with ideas. Just focus on your customers, build on them and they will take your business off the ground.” The young agripreneur points out that even though farming may appear to be the panacea for unemployment in Kenya especially for the youth, there is need to assess the value chain in agriculture and see where the young people can best fit in. Unlike the older generation that can afford pieces of land and the patience to rear animals for income, a graduate may find it discouraging to start from that point. “However, they should not feel disempowered by this situation as there are many other ways to take part in agribusiness without having to farm. This is because, the young people have the skills and knowledge that the older generation could be lacking. If they concentrated in value addition the entire chain could benefit.” HUSTLE EAST AFRICA
36
ADVERTISE
WITH US
MOBILE
DESKTOP
OUR MEDIA KIT With our reach, distribution and readership, we can help your business grow. Contact us for more information today! 0720 806488, 0725 833890, 0714082914
IF YOU ARE READING THIS, SO ARE YOUR POTENTIAL CUSTOMERS
• 48hrs withdrawal
• Over 10% interest p.a.
• No hidden charges
• Invest with as little as KShs. 1,000
Tel: 0705 100 100 Mobile: (+254) 796 962 837 HUSTLE EAST AFRICA
Email: info@britam.com www.britam.com
BritamEA
BritamEA