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March/April 2018 STARTUPMAGAZINE.CO.KE KSHS. 300/ USHS. 9000 TSHS. 6000/ RWF. 2200
ECLOF KENYA
Championing for Prosperity Through Financial Conciliation TRACTION SCHOOL
Promoting excellence in corporate governance
WANGARI MUIKIA Discovering my purpose in public policy, finance and administration
CEO SPEAKS 6 leadership lessons I have learnt as a CEO from the past year
TRAVEL A day trip to Lake Magadi
MARY MUNYIRI CEO ECLOF KENYA April 2018 Startupmagazine.co.ke
31ST MARCH & 1ST APRIL 2018 Two Rivers Mall, Nairobi
MORE THAN
KSH 50,000 TO BE WON
Our second edition of the East Africa Gaming Convention aims to meet the needs of all the gaming enthusiasts in the region. It will be the leading platform for meeting with interactive entertainment developers, publishers, distributors, service providers, platform providers, localization providers and game developers, payment providers, multimedia, telecom operators, investors, government ofď€ cials, and retailers in the region.
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Contents
12 How Traction School of Governance promotes excellence in corporate governance
14
32 HowWill the Chief Operation Officersmanage to digitize supply chain in an exponential world? Startupmagazine.co.ke April 2018
34 Beatiful memories of remarkable wildlife experience at L. Magadi
Wangari Muikia talks about starting her own company and her passion for public policy and finance
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March/April
2018
Contents 22 12
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Techie Eldama Technologies: Designing world class ICT solutions for today and posterity
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26
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Quest Holdings; Your Professional Partners in Debt Management
Innovation Digital transformation to drive new postal models
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Supply and Logistics The dilemma: Will the Chief Operation Officersmanage to digitize supply chain in an exponential world?
Interview
Debt Management
Africa needs more young women in tech Women with tech skills are key to Africa’s ability to thrive in the digital economy, says Sthe Shabangu.
How Pangea Accelerator aims to shape the next generation of African entrepreneurs. An interview with Jonas Tesfu 20
Leadership Perminas Wainaina, the CEO of Corporate Staffing Services Limited talks about the 6 leadership lessons he has learnt as a CEO from the past year
Woman of Power Wangari Muikia is an ambitoius lady. With her firm keen on improving public sector delivery through management of public finances and policies, she works with private players, development agencies and African governments to achieve that.
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ECLOF KENYA Championing for Prosperity Through Financial Conciliation
Corporate Governance How Traction School of Governance promotes excellence in corporate governance
Main Story
Coffee Break 34. 38. 39. 40.
Travel and Leisure Book Review Blog Review Song Review
April 2018 Startupmagazine.co.ke
4 Managing Editor Sylvester Habil Okumu sylvester@startupmagazine.co.ke Associate Editor Adisa Hudson kabwoyaelizabeth@gmail.com Editorial Oroni Tendera oronibrahim@gmail.com Contributors Gilbert Saggia Sthe Shabangu Perminus Wainaina Mehmood Khan Business Development Manager Washingtone Terry Marketing Executive Irene Okoth Operations Simpson Ayodi Creative Designer Kreative Hub Media Published by Kreative Hub Media 4th Floor, Bihi Towers, Moi Avenue next to Bazaar. P.O Box 3875-30200, Nairobi Kenya. Tel (+254) 20-2088776 Cell (+254) 724 113 683 / (+254) 773 659 940 Email: info@startupmagazine.co.ke Website: www.startupmagazine.co.ke
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StartUp Magazine is published monthly. Copyright 2018 Kreative Hub Media. All rights reserved. No part of this publication may be produced or transmitted in any form including photocopy, or any storage and retrieval system without publisher's permission in writing. The views expressed in this publication are those of the authors and do not necessarily reflect the position of the publisher. Readers are advised to seek professional advice before acting on any information contained in this publication. Important Information for Contributors to StartUp Magazine By submitting content before publication you confirm that: (a) You (and/or other named contributors) are the sole author(s) of the content submitted; (b) The content you submit is orginal and has not previously been published (unless you specifically advise us on the contrary); (c) You haven't previously licensed the use of the content you submit; (d) So far as you are aware, the content submitted will not infringe any third-party rights, be defamatory or in any way illegal.
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yard, which can fall on or around your house during a storm. •Have sandbags on hand for low areas of your house to keep water at bay during a flood. •In a flood, move furniture to higher floors to prevent water damage.
Editor’s Pen
How to stay safe during the rainy season The rainy seasons are a welcome change from the sweltering summer heat, but they bring some very unwelcome guests which must be avoided at all costs. Many Kenyans hope for abundant rain during the 2018 season but when too much rain falls too fast, flash floods are likely. We must take precautions during rainy season. Here are some tips to prepare you and your family for heavy rain and flash flooding: Preparing Your House for Rain A little preparation goes a long way to
take care of your home during heavy rains. Here are some tips to keep your home safe and dry: •Get your roof and gutters inspected to ensure good condition before the rain falls. Remove leaves or debris from gutters throughout the year. •Check the inside of the house to be sure there are no signs of water leaks—mold, water rings, or paint discoloration. Make any necessary repairs. •Check doors and windows to ensure they seal properly. •Purchase hurricane socks, which can absorb a gallon of water at a time, for a leak-prone garage. •Prune dead branches from trees in your
Staying Safe During a Flash Flood Emergency preparedness is the best way to keep you and your family safe during a flood. The following tips will help you prepare for the worst: •Listen to local weather stations during storms for possible flood warnings. •If there is a flood in your area, get to higher ground and stay there until it’s safe to return. •Steer clear of flood water. As little as six inches of moving water can sweep you off your feet. Keep children away from flood water too. •If approaching a flooded road by car, turn around. Cars can be swept away by less than two feet of moving water. If you cannot turn around and water is rising around you, get out of the car quickly and move to higher ground. •Homeowner’s insurance doesn’t usually cover flooding. Know the flood risk in your neighborhood and buy additional insurance if necessary. •Assemble an emergency supply of food, water, and other necessities. editor@startupmagazine.co.ke
April 2018 Startupmagazine.co.ke
StartUp Stories
Letters to the editor “I grew up watching my father run his own business to the point that he became extremely successful. I admired his passion and commitment to an extent that it inspired me to start and run my own business.”
Gloria Michelle Otieno (Kenya) Gloria Otieno is the CEO of Recours Four Kenya Consultants Limited (R4 Kenya), a fast growing professional HR services which she founded in 2013. She started the firm with her savings of about USD 2,000 and has successfully bootstrapped it into a USD 400,000 (annual revenue) company in a span of five years. R4 Kenya offers professional services in consultancy, recruitment, training, psychometric testing and staff outsourcing. The company’s clients include the World Bank group, Kenya National Examination Council, USAID, GlaxoSmithKline and Sportpesa.
“I explore business partnerships and venture capital in more detail inside the free course”
Kudos for a Job well done I am an ardent reader of entrepreneurship stories and since I discovered the online edition of startupmagazine.co.ke, I have never been so grateful. I am impressed by your fresh and timely content which are well done. Keep up the good work and continue to educate us with your inspiring content. Mkasha Mwazima Student, Mombasa Venture to Ethiopia I hail from Ethiopia but I have studied and worked in Kenya for awhile now. While the Kenyan entrepreneurial stories are well told across the continent, hardly have I read about Ethiopian entrepreneurial culture, save for a few which I stumbled up on your blog. Kindly venture and distribute the print copy in Ethiopia. Halime Sellassie Ethiopian
Advice to young entrepreneurs
Jason Njoku (Nigeria) Jason is the co-founder of IrokoTV, a mobile entertainment and internet TV platform that’s particularly popular for its impressive catalogue of African ‘Nollywood’ movies. He tried his hands at business severally while in the UK and returned to Nigeria to build relationships with local movie producers and purchase content rights for his new startup, Iroko TV. It wasn’t a smooth ride as he was cash strapped and sought help of his friend who pumped in 90,000 Euros. Other investors then came knocking. He has successfully raised significant amount of capital and grew his company to profitability. Forbes Magazine recently described his company as “the Netflix of Africa.”
“ My driving passions are sharing Ethiopian cultures with the world , and finding exciting ways to keep these cultures vibrant and fully relevant . My goal is to build exciting brands around these unique cultures , brands that become as ubiquitous and impactful as APPLE …”. Bethlehem Alemu (Ethiopia) Bethlehem Tilahun Alemu is a globally acclaimed serial entrepreneur. She is the founder and CEO of soleRebels, the world's fastest-growing African footwear brand and the only WFTO Fair Trade footwear company in the world. Growing up in one of the poorest and most marginalized neighborhoods in Addis Ababa, Bethlehem decided that there was only one way to defeat poverty and create lasting prosperity – use local craftsmanship to make world class products that can compete and win in the global marketplace. She decided on footwear and today tens of thousands of pairs of shoes leave soleRebels factory every year. soleRebels has been expanding rapidly and today exports to no fewer than 45 countries and is targeting 50 stand alone soleRebels retail stores across the United States by 2020 and 500 worldwide by 2023/24. Bethlehem is also the founder and creator of Republic of Leather a super cool new company that is changing the way people around the world buy & love luxury leatherwear. In 2016, she launched her brand Garden of Coffee which CNN Money hailed as Africa’s answer to Starbucks!
Startupmagazine.co.ke April 2018
For some time now, the Africa Rising vibe has become synonymous with any investor visiting the country. While Kenya and Africa has a whole has so much potential to write home about, there lacks capacity to build a sustained growth. Many young Kenyans I have interacted with have bright ideas but lack the capacity to implement them. And those who implement are in so much haste to strike gold. Entrepreneurship is a journey, and young people should be ready to walk the whole journey. Mark Paul Venture Capitalist
HAVE YOUR SAY ONLINE The editor welcomes reader’s opinions but deserves the right to edit them for publication. Please email to info@startupmagazine. co.ke More comments are published online about news stories published on startupmagazine.co.ke
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Enabling Excellence Scribe Services Registrars Limited is a leading corporate services firm, the company prides itself in offering dedicated attention to detail in the provision of the whole spectrum of Immigration services support, corporate governance and compliance as well as advisory and training. We boast of a tradition of excellent service delivery during our long and exciting history of providing world-class corporate support services to a varied clientele. Our Services •Company Secretarial •Corporate Governance •Accountancy & Payroll •Immigration •Nominated Advisors +254 20 2249 100/11 +254 720 021 253
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20th floor, Lonrho House, Standard Street PO Box 3085-00100 GPO, Nairobi, Kenya April 2018 Startupmagazine.co.ke
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News Gionee targets trendy Kenyans with S11 Lite smartphone launch movies videos and playing games. The smartphone, the fourth to be launched in Kenya by Gionee, is targeted at trendy mobile phone users in need of a quality budget device.
Gionee Kenya training manager Clinton Kasuti (R) speaks during the launch Gionee has unveiled its premium smartphone as it increases its presence in Kenya. The S11 Lite boasts the full-screen display technology which offers wider viewing area for watching
Gionee Marketing Manager for Kenya Peate Shaw says the S11 Lite, which is retailing at Ksh26,999, is dual SIM and camera phone that delivers features and functionalities of a high end smartphone. The phone packs 32GB of internal storage that can be expanded up to 128GB via a microSD card. The rear camera is not just 15megapixel, it has a dual camera on the rear of 15mp +2mp, which enhances the picture quality, making it ideal for selfies. He said Gionee picked Kenya as the first country to launch the phone in Africa as it has a growing market for smartphones. He said Gionee is developing phones that meet the tastes of Kenyan mobile phone users, especially the young and trendy who love to take photos and play video or movies.
Aidem Business Solution to host the 2nd edition of the East African Gaming Convention (EAGC) in Nairobi
The Gionee S11 has an in-built fingerprint sensor as the primary security feature, along with the host of connectivity options in terms of 3G, 4G, GPS, Wi-Fi Bluetooth capabilities. “The reception of our phones since we entered the Kenyan market in 2016 has been very positive,” said Peate. “We are targeting to have brands for all budgets and increase our market share in Kenya.” The launch of the S11 Lite comes barely two months after Gionee launched its X1S in December 2018 for mid-range market. Peate said Gionee is offering smartphone users a combination of advanced technology and enhanced selfie and battery capabilities. The Gionee S11 is available in major towns across the country including, Nakuru, Mombasa, Nakuru, Eldoret and Kisumu, among others.
After a successful inaugural event that attracted over 700 gaming enthusiasts per day from the region, the East African Gaming Convention (EAGC) returns for the second year from 31st March to 1st April, at the TRM Mall in Nairobi. The 2017 convention set out with an aim of introducing a wide variety of educational and entertainment video games, online games, mobile games as well as education and information software, game related hardware, and next-generation platforms. The 2018 edition under the theme “Coding for Nontech” is expected to provide a wider platform for meeting the entire value chain of the gaming industry in East Africa, providing the opportunity to network with companies developing new technologies and services and explore latest updates occurring across the gaming sector. Companies and Game Developers are equally invited to showcase their games and use this platform to speak directly to an expected audience of more than 1000 gaming enthusiasts who are powering the fastest growing market. The Tournament The convention is set to feature gaming tournaments where the participants will go head-to-head to compete for prizes and bragging rights. In addition to FIFA and Mortal Kombat XL and Tekken 7 Registration to participate in the four tournament games is open with overall winner in each expected to walk away with KSH. 50,000 (approximately USD. 500), Runner’s up getting KSH. 25,000 (approximately USD. 250) and Second Runner’s up pocketing KSH. 15,000 (approximately USD. 150).
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News
British Ambassador hands funds to UK-Ethiopia Social Enterprise
Darling launches new premium brand Move to create consumer delight and accelerate growth in the dynamic Ksh 25 billion Kenyan Hair market Darling Kenya, East Africa’s hair extensions manufacturer, is scaling up its operations in the Ksh 25 billion market with the introduction of a premium braid – a product which will offer Kenyan consumers more delight, as well as care for her own hair. The result of an extensive research and development process, Elegant Braid is made from a combination of premium light-weight fibres that ensure the hair is not pulled, hence taking care of the hairline. This braid offers a neater, shinier finish because of its smooth texture and long-lasting sheen. The premium fibres also give Elegant Braid the best full hot water curls to ensure different styling options and keep consumers looking fashionable. Darling Kenya Marketing Manager, Victoria Kieti-Chesire, said the introduction of the Elegant Braid leverages the brand’s continued commitment to consumer-relevant innovation and quality, as it seeks to maintain the trust it has built over generations. Ms. Chesire added that the brand will seek to increase its equity and advocacy through tailor-made engagements with local salons and stylists. Darling Kenya’s ranges of products include braids, synthetic weaves, wigs and crochet, which has helped the brand build a significance footprint in the region. The brand enjoys a premium position in the Kenyan market with significant market share. “As a salon, we are excited by Darling’s investment in a high-end hair extension. It will enable us to deliver great hair, value and service to our customers. We appreciate that Darling shares our vision and values to deliver the best quality products and services to meet the needs of our consumers,” said Dan Nduru of Daniella’s Salon and Spa. In 2011, Godrej Consumer Products Limited (GCPL) entered into a partnership with Darling Group Holdings, a leading pan-African hair care company. Darling, with operations in 14 countries across Africa, is a market leader in hair extension products; a category it has pioneered in the continent. In fiscal year 2017, GCPL ‘s hair extensions and wet hair care products businesses, contributed to 43 per cent of the company’s revenues from international businesses.
Startupmagazine.co.ke April 2018
Ambassador Susanna Moorehead handed funds raised at a High Fashion and High Tea networking event to Arakele Fashion Design College British Ambassador to Ethiopia Susanna Moorehead visited Arakele Design College to see how one innovative British-Ethiopian partnership is helping create both stunning new fashion and new opportunities for underprivileged women and refugees in Ethiopia. Arakele is the brainchild of Briton Arabella Stewart and Ethiopian Mikele Goitom. Since 2014 400 students have graduated from Arakele programmes, which range from short term courses to longer term diplomas. Students and workers come from a variety of backgrounds including women who have returned from domestic work in the Middle East, refugees from neighbouring countries and women rescued from abuse and living in safe havens. This year Arakele is taking its social impact further by providing school uniforms produced by its students, supporting primary school children in need through feeding programs and donating pencil cases, made by a local group of deaf women. To support this work, Ambassador Moorehead handed over funds raised during a High Fashion and High Tea and networking event at the British Ambassador’s residence to celebrate International Women’s Day. The event brought together stylish Ethiopian and British brands, including Zaaf, Sabahar and Pittards, alongside artists and fashion designers.
Handing over the funds, which will be used to enhance the college’s free scholarship programme in the fashion design sector, Ambassador Moorehead said: “Providing education & training for women and girls is one of the UK government’s priorities. It’s a great pleasure to be able to support this fantastic Ethio-British collaboration that is doing precisely that.” Arabela Stewart, co-founder and general manager of Arakele fashion design also said: “It was a really great honour and privilege to be contacted by the Ambassador and invited to participate in the High Fashion and High Tea event and we are excited about and look forward to further collaborations. We are thrilled and extremely thankful to be recipients of funds raised at the event. All donated funds for Arakele go into acquiring additional sewing machinery and our scholarship fund.
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Corporate Governance
Bernard Kiragu, Managing Partner Scribes Services
Traction School of Governance; Promoting Excellence in Corporate Governance
Startupmagazine.co.ke April 2018
Bernard Kiragu, a Managing Partner at Scribes Services, is a man who is passionate about corporate governance and ethical standards for overall organization success. As an MD, he has partnered with firms like International Finance Corporation to facilitate workshops for Directors and executive staff of companies for efficient service. With the setting up of Traction School of Governance, Scribes Services seeks to impart business executives with new skills, knowledge and competencies in order to remain relevant and meet the growing expectations of their practice.
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In the following interview with the StartUp Magazine, Mr Kiragu shares his motivation and hope for the school. Briefly, tell us a brief history about Scribes Services and its mandate? Scribe Services is a leading corporate services firm, duly registered in Kenya in accordance with the provisions of the Registration of Business Names Act, Cap 499. The company prides itself in offering dedicated attention to detail in the provision of the whole spectrum of corporate secretarial support, corporate governance and compliance as well as advisory and training. The story of Scribe Services began in pre-independence Kenya with a firm then known as Angus Lawrie Jeremy & Company, which provided company secretarial and accounting services. Previously the Company Secretarial division at KPMG, Scribe Services continues to provide Company Secretarial services to a large client base across diverse sectors. We boast of a tradition of excellent service delivery during our long and exciting history of providing world-class corporate support services to a varied clientele. In the year 2017, Scribe Services signed an agreement with the International Finance Corporation (IFC) for provision of Governance Training and Advisory services to listed entities on the requirements of the Corporate Governance Code, 2015. What is the motivation behind Traction School of Governance? The growing demand for Governance practitioners has led to a shortage of qualified personnel. This demand is forecast to continue growing into the foreseeable future. It is against this backdrop that Traction School of Governance was set up.
I would urge more aspiring governance practitioners to register for and pursue the CS qualification. What courses or programmes will you offer at the school? The school will initially offer Certified Secretaries (CS), Certified Public Accountants (CPA) and Accounting Technician Diploma (ATD) courses currently examined by the Kenya Accountants and Secretaries National Examinations Board (KASNEB). We are also in discussions with other examiners and will be introducing Certificate and Diploma courses in Corporate Governance. The courses offered will be tailor-made and taught by expert practicing industry practitioners with ability to infuse hands-on experiences. What is your competitive edge? We are currently the only college offering a dedicated CS stream for fulltime, part time and online/distance learning modes of study. What is the importance of good corporate governance towards the success of a company? Good governance skills help the Directors and Executives to monitor keep the management team in check while protecting the investors’ interests at large. The knowledge on setting ethical standards of operation forms a fundamental yardstick that ensures the structures in place promote the financial fidelity of the company. What will be the future of companies if good corporate governance is achievable? Better returns definitely. When the financial fidelity is ensured, companies will automatically stand a better chance of attracting capital as well as better business prospects. Any other thing you have been doing lately? Yes. We have and continue to organize successful shortterm trainings for Directors and Top Management on corporate governance in partnership with the International Finance Corporation (IFC).
April 2018 Startupmagazine.co.ke
Woman of Power
The sky is my lower limit says Wangari Muikia Startupmagazine.co.ke April 2018
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Wangari is an ambitious lady. The sky is her lower limit. With her firm keen on improving public sector delivery through management of public finances and policies, she works with private players, development agencies and African governments to achieve that. In 2017, Wangari gave a talk at TedTalk Ridgeways Nairobi on being raised in Kenya, schooling and working in a multicultural environment, her interests in public finance and policy, and why working with development agencies shaped her dreams. She narrates her journey of self-discovery in an exclusive interview with StartUp Magazine.
a
fter my high school studies in Kenya, I got a scholarship to pursue International Baccalaureate program in the US for two years. I was selected as the only representative from Kenya at the time because of my academic and leadership qualities as well as my overriding zeal to impact change in others. Back in high school, I had been selected as the head girl by my peers and teachers. I did not imagine I could be a leader and the fact that people saw leadership abilities in me, it pushed me to believe that I can be able to lead and succeed anywhere in the world. After the International Baccalaureate program, I got another scholarship to study Management in Information Systems at the University of Oklahoma. Thereafter moving to Washington DC after studies, I was fortunate to get a permit to work for a year. Soon after, I got a chance to work at the World Bank which hugely shaped my future career know-hows despite lessons on humility and hard work. Starting off as a part time assistant associate in a small storage room, I was tasked to file documents. I did not shy at the opportunity but grabbed it and filed so many documents that my seniors were surprised. They marveled at my hard work and dedication which later got me a promotion to a junior professional associate. I grew up the ladder and made my bones at the World Bank while learning important tenets in public finance and administration. After three years at the job, I left to take up another scholarship at Harvard University, the Kennedy School of Government for my Masters in Public Administration. I met intelligent and incredible minds at Harvard who inspired me to be very competitive. I was also self-driven by my mantra of never setting boundaries that would limit my ambitions. Having the sky as the lower limit particularly mirrored my sentiments as a child and when I told my mum that I wanted to be the
President of Kenya. My ambition is priceless! I later came back to Kenya and worked in senior positions with Dalberg Global Advisors, the National Treasury and the World Bank in Kenya. I undertook several other projects with development agencies among them USAID, DANIDA, DFID and the Global Fund as well as advised on several other government projects including devolution. Although I loved my job at Dalberg, it was however short lived. I had a heavy travelling schedule and was away from home and my family most of the time. I had to reconsider my career options. It is also these invaluable experiences at the firm that a model for Expertise Global Consulting was birth. Working with the World Bank here in Kenya and the National Treasury was of interest to me. I was posted to the office of the Country Director to help set up strategy, coordinate and align donor support to the National Treasury. When Kenya’s new Constitution was being implemented leading to devolution, the World Bank was very quick to set up a fiscal decentralization programme that would support the National Government to transition. I was largely involved in actualizing it. The idea of setting up Expertise Global Consulting began taking shape back in 2014 when I was still at the World Bank. I felt that I wanted to do something more and spread my wings further. I felt I was being constrained as an employee and I opted out to start consulting independently. I started working as an independent consultant after setting up the firm. A year later, I set up structures and re-established connections and networks that I had while being employed. At Expertise Global Consulting Limited, we undertake entity-specific analysis by working side-by-side with our clients on the ground, identifying the issues and providing context-specific recommendations. We also create and disseminate knowledge, based on
our own internal research and analyses; a research that enhances the ability of our clients and the public to actively engage in the improved provision of public services. I am a firm believer in utilizing my talents as much as possible, and as an entrepreneur I got to fully actualize that. My ideas are the goals, visions and objectives of the company and that by implication means that I have to prepare well. In that regard, I have a very young, robust and dynamic team which is very integral towards the realization of our goals as a company. We are very open, flexible, and innovative and we stay in touch with reality, which keeps us moving. Working as an entrepreneur is fantastic. It keeps me energetic and knowledgeable to new ideas. I don’t have a specific work routine, but I come to office early in the morning, respond to emails, prepare my day and later meet with my team to check on the progress of assignments. In the afternoon, I mostly focus on business development although this can change depending on the day. The business has its ups and downs and as an entrepreneur you have to prepare effectively. There are lean moments which have taught me invaluable lessons, key being the need to balance my finances and work portfolios. I have also learned to balance my work and family time. Every day I make sure that I have taken breakfast with my kids and drop them to school before coming to work. I also dine with them daily and catch up with my husband when he is away. On weekends, I spend time with my friends who are mostly entrepreneurs, catch up and learn new developments in the world of business. I have interest in social impacts and I am a board member of several organizations that champions for the right of underprivileged people in the society. My company is currently operational in six countries including Kenya, Nepal, Dubai, Senegal and Swaziland. I look forward to diversify my portfolio and expand my niche.
April 2018 Startupmagazine.co.ke
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Techie
Long gone are the days of IT hardware planning. Today, firms are now turning to cloud-computing storage and computer services to cut down on operation costs and do away with the trouble of managing databases. The IT systems and software’s are getting sophisticated by the day and as the CEO and founder of Eldama Technologies, Mr. Jonathan Somen formerly of Access Kenya shares with StartUp Magazine in an interview, the ICT solution providers like themselves either have to match up or get locked out.
Jonathan Somen, CEO Eldama Technologies Startupmagazine.co.ke April 2018
Eldama Technologies: Designing world class ICT solutions for today and posterity
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very business strives to provide quality and efficient service to its clients. Some embrace innovations and technological advancement in order to remain relevant to a particular niche and have a competitive edge against other competing service providers. Founded in January 2016, Eldama Technologies is driven by the desire and strong will to provide innovative IT managed services to its clientele. “We are leveraging on our major experiences in providing IT managed services to help our clients outsource their IT functions efficiently; not only limited to the cloud but also to an IT company that manages systems as their core business, says Mr. Jonathan.” Jonathan Somen, CEO and Co-Founder, Eldama Technologies With such IT innovations, businesses will be left to focus on their key areas of operations like the Real Estate, Tourism, Manufacturing and whatever industry they operate in explained Jonathan. The inspiration behind Eldama Technologies was the need to bridge the gap in technology and business by borrowing the global IT systems development perspective and localizing it to a local audience. With massive experience after the selling of Access Kenya, Mr. Somen in partnership with his wife Petra opted to tap on his previous knowledge in building infrastructures with excellent connectivity to fill in the plugs on the growing trend for cloud computing to set up Eldama Technologies in January 2016. Later teaming up with his brother who came on board as executive chairman, the two also co-own an IT firm in United Kingdom have a blended wealth of experience selling cloud solutions. “At Eldama Technologies, we understand the market both locally and globally. We know what clients need and we focus on helping them build their businesses by providing innovative solutions to help them gain competitive edge and become more efficient,” pin points the CEO. With the cloud services coupled with managed IT services forming the backbone of the future of businesses in Kenya, Eldama Technologies has designed a roadmap that takes clients on a structured and organized journey to ensure that they meet their objectives. Renowned as Kenya’s first Microsoft Tier 1 Cloud Solutions Provider, Eldama Technologies has invested heavily in Microsoft skills and competences in order to become the best cloud provider in the region. “Today you cannot sell IT solutions without proper certifications. We have direct sales teams who have technical certifications driving our course within the region,” reiterates Mr. Jonathan. “In addition, with a
With the cloud services coupled with managed IT services forming the backbone of the future of businesses in Kenya, Eldama Technologies has designed a roadmap that takes clients on a structured and organized journey to ensure that they meet their objectives.
INVESTMENTS
technical know-how and track record of successful implementations, we are better placed to help our clients enjoy the massive benefits of using cloud services.” Eldama Technologies has a primary focus on Microsoft’s highly developed cloud offerings which the CEO confirms are extremely good with positive ratings by companies across the world run on Microsoft cloud solutions. Recently, the firm entered into a partnership with Mimecast who have a comprehensive email risk/ security management services. “Online security is becoming a big problem. Companies are increasingly becoming aware of cyber security and how they can secure their business online,” he explains. “We however are working with a reliable partner in Mimecast to infuse cyber-crime security into our IT services provided and ensure our services are secure.” Besides the provision of managed IT services, the optimistic CEO is pleased to have started a business in Kenya and getting an opportunity to create employment, contribute to the economy and make a difference in people’s lives. And who is to say that he is wrong given that Gartner estimated that the worldwide public cloud services market was projected to grow 18% in 2017 to a figure of USD 246.8 billion.
Many African startups lack a great team with a lot of passion, persistence and drive. Startups need to focus on a big market with a unique approach. Personally, I believe the success of a firm during its early stages of inception is based on the tenacity of its team.
Jonas Tesfu, Entreprneur
Going forward, he envisions a robust Eldama Technologies serving posterity with key focus on reliable infrastructures and good customer services. In the next three years, the brothers intend to widen their scope and efficiency in service delivery to be the number one provider of cloud solutions and managed IT services in Kenya.
April 2018 Startupmagazine.co.ke
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Interview
Jonas Tesfu, Entreprneur & Performing Artiste
Nurturing the next generation of African entrepreneurs A man of Eritrean descent trotting the world to offer consultancy on business development, Jonas Tefsu’s passion for investments has seen him speak and teach at workshops and conferences around the globe. As a founder of startups like Byspire, Style Advice, Avery Ventures and Oslo Greenhouse, he commands a strong voice in the Norwegian startup scene. Currently a board member of Polyteknisk FÜrening, alumni at 500 startups and Angel Challenge, Tefsu established his consultancy in Berlin,Stockholm and Silicon Valley where he has over ten years of startup experience in the sector- having advised over 100 startups with implementation of their business strategy. Startupmagazine.co.ke April 2018
j
onas recently launched Pangea, a Norwegian accelerator firm keen on linking Kenyan start-ups with international investment and expertise. He spoke to Sylvester Okumu, the Managing Editor at StartUp Magazine on his dreams of nurturing the next generation of African entrepreneurs through the Pangea Investment accelerator program. Tell us about Pangea Accelerator and what is seeks to address? The Pangea Accelerator Program is a three months milestone based accelerator program that focuses on validation and scalability. The Pangea Accelerator ensures the investment readiness of your startup and connects you with the right angel and diaspora investors. Does African startup need global investment and expertise to unlock their potential? Yes and no! I believe the best combination is to have local and international investors since it enables you to be strong on both local and international markets.
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its early stages of inception is based on the tenacity of its team. What is your secret recipe of developing the next generation of African entrepreneurs? At Pangea, we focus on building the best support system for African entrepreneurs. Everything we do is to help nourish the Startups and help them scale. How then can African startups make use of your programmes and services to attain success? There are many ways a startup can use the program to attain success. The Pangea Accelerator enables your Startup to tap into a pool of experience and expertise from the angel investor and diaspora communities in Europe, US, and Africa, and also learn from them. Our program can help companies scale to new markets, develop new services or get smart investment. What do you think is the future of Africa’s economy with a vibrant startup and SME sub-sector?
I believe Africa is the future and that great innovations come from necessity. If African entrepreneurs can have the same opportunities as entrepreneurs in Europe or US, they can compete globally. Another factor is leapfrogging and the fact that given a chance, Africa will implement new technologies faster than developed countries. This will provide a better competitive ecosystem for driving new innovations. Actually, despite the fact that I strongly believe in healthcare and education, I foresee the agriculture sector churning out the next African millionaires and billionaires. Going forward, what roles are you (Pangea) going to play in shaping Africa social and economic growth? Our ambition is to take a leading role in shaping Africa’s social and economic growth. Initially, we will start in Kenya but within a few years, we will have ventured into many African countries and supporting talent. We believe the diaspora community will play a crucial role in driving the growth and our job is to get them activated today through the Pangea accelerator and our investment platform.
At Pangea Accelerator we focus on activating the Diaspora community since they are a good combination of local and international investors. An overall belief is that many African companies can grow with local investors. However, the problem is that there are very few active investors in the Kenyan startup ecosystem. If the above is true, what is the single biggest predicament to African startup growth and sustainability? Many African startups lack a great team with a lot of passion, persistence and drive. Startups need to focus on a big market with a unique approach. Personally, I believe the success of a firm during April 2018 Startupmagazine.co.ke
20
Debt Management
Quest Holdings; Your Professional Partners in Debt Management We provide professional receivable management solutions for both financial and commercial markets.
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enown for provision of professional Debt Management Solutions, Quest Holdings Limited (QHL), a debt management firm continues to leave footprints across different regions. With its headquarters in Kenya’s capital, Nairobi, QHL takes pride in its mastery of the debt market dynamics in East Africa and aims to be the debt management partner of choice for individuals and businesses. “We provide professional receivable management solutions for both financial and commercial markets. Our focus is on maximizing clients’ cash flow management and credit control aspects,” says Erick Oluoch, Chief Executive of Quest Holdings in an interview with StartUp Magazine. When the firm started in 2007, the Executive explains that a lot of people and businesses did not understand the concept of debt outsourcing, save for a few financial institutions-banks mostly. It took close to 2 years for most people to begin to understand the debt market and the line of business the firm was spearheading. Set up in Nairobi, the firm has now spread its wings across the region to Uganda and Tanzania with plans to venture into Zambia in the course of time. Startupmagazine.co.ke April 2018
With a tagline of ‘Debt Management Simplified,’ QHL has undertaken major strategies to professionalize the industry and alter the bad undertone that debt collection has always been associated with.The lifeline of any business is cash. No business can survive without it and that basically means that anyone dealing with any form of credit needs our services points out Mr. Oluoch. “When we were starting out, it was difficult for businesses to believe that one can recover huge debts for them,” adds the Executive. “While this perception has changed over time, firms are now starting to worry about their reputational risk in the act of collecting debt. But why should they worry? Professional managed debt cannot be injurious. And we are here to ensure that,” he explains. In established markets, debt collection is well advanced. The concept is crystal clear for most businesses. In Kenya you have to make clients believe in what you do. “We primarily collect debt and charge a collection fee. One should think of credit in this way. Once an individual procures a product or service and fails to pay immediately, that is already a debt,” he explains further. He further comments that the credit market is huge in Kenya as most people
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Erick Oluoch CEO Quest Holdings
only know of the conventional market led by financial institutions which controls bigger chunk of Kenya’s economy. Debt collection is at the tail end on debt management when one fails in risk mitigation measures. However, QHL takes pride in its robust systems, technology and advanced product offering to help businesses manage their delinquencies. Collection cycle “The market has a cycle starting with early delinquency where a buyer does not pay immediately for services/products procured. This is where you give us your debt as young as five days old. We can come in at this stage to offer credit management function. We then slowly and consistently remind the client the need to clear the debt until he does so,” notes Oluoch. Emerging trends Financial industry is growing fast with Financial-Technology (Fin-Tech) taking the
PHASED OUT Financial industry is growing fast with Financial-Technology (Fin-Tech) taking the show. With time, institutions that won’t embrace change will be faced out. The capping of the interest rates by the Central Bank of Kenya last year affected lending that Credit to SMEs and individuals has shrunk as banks are now employing tougher risk mitigation measures, he observes show. With time, institutions that won’t embrace change will be faced out. The capping of the interest rates by the Central Bank of Kenya last year affected lending that Credit to SMEs and individuals has shrunk as banks are now employing tougher risk mitigation measures, he observes.
“Bad governance has also affected the credit industry massively with a number of financial institutions closing down the past 2 years. The industry has experienced exponential financial inclusion and expansion with a double edged sword effects. It has opened credit access to many people and created a culture that is highly depended on debt. There is stiff competition at the market. Everyone is willing to sell on credit. This has inturn created a generation that will be highly indebted in the future. Like right now we are having young guys who are taking loans to buy a mobile phone which is very sad!” he says in finality. QHL promises to continue championing professionalism of debt collection and ensure clients brand are maintained, customer relationships are built and creditors recover their money.
April 2018 Startupmagazine.co.ke
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Main Story
Mary Munyiri CEO Eclof Kenya Startupmagazine.co.ke April 2018
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ECLOF KENYA Championing for Prosperity Through Financial Conciliation Eclof Kenya, one of the National Eclof’s Committees (NECs) affiliated to the Eclof international is a leading microfinance firm in the country today. Eclof seeks to champion forfinancial inclusion to low income earners from economically active communities. The gap is bridged through provision of financial and related non-financial services to micro, small and medium enterprises. With an expansive reach in Kenya servicing over 50,000 customers, the CEO of Eclof Kenya Mary Munyiri during an interview with StartUp Magazine tells their story.
“ We realized that many people had been excluded financially by the big boys. So we came in to bridge the gap left by funding MSMEs both in urban and rural areas. Our ultimate vision is to create a world of human dignity and prosperity made possible by our financial provision,” says the CEO. She adds, “We finance players across the sector ranging from agriculture, education and trade among others.” Competitive edge Eclof’s tagline is microfinance with a difference because we offer personal touch to our financial services. The main competitive advantage of the firm is its service delivery. Nothing runs supreme other than a delighted and happy customer. “We work very hard to ensure that we
have a smiling customer at the end of the day,” affirms the CEO. Generating a loyal clientele base is a major concern for the microfinance. The team works tirelessly around the clock to meet the needs of customers and to capitalize on the competitive edge by providing tailor made financial solutions aligned to customers need. “Our product design and services are tailored to meet the market needs. Of importance is our service delivery approaches which are sensitive and unique to each client’s need,” she adds. The development of agribusiness strategy, Eclof’s key product, has enabled the firm to meet the needs of small scale farmers. Through this diversification, clients are able to choose how they want the services delivered to them. “We impact lives and livelihoods by enabling these micro and small entrepreneurs to grow their businesses as well as their state of wellbeing,” emphasizes Mrs. Munyiri.
BUSINESS LOANS
Business loans are meant to equip business owners with better financial muscles to drive their business forward while agriculture loans are for agri-business ventures.
The institution develops products and services based on feedback from clients through its regular client’s satisfaction surveys. At micro levels, Eclof targets both individuals and groups where members can co-guarantee each other. Services Offered The financial products are classified into four broad categories: namely business April 2018 Startupmagazine.co.ke
24 The green energy loan that still fall under the Social or Support Loans wing enables clients to buy solar panels and bio-digesters that in the long run helps them reduce the cost of energy as they capitalize on solar energy.
Main Story
Competent staff Eclof Kenya is a competitive employer with very competent staff. The staff are hired competently and taken through an internal induction process to prepare them effectively for the task at hand. “In addition, our staff meets clients on a weekly basis across the country. We track their development, ascertain their issues and address their complaints. We believe that a client should manage their finances in a better way and our staffs take a leading role to train our clients on financial literacy (including management, budgeting and saving).”
loans, agriculture loans, social or support loans and personal loans.
GROWTH
Business loans are meant to equip business owners with better financial muscles to drive their business forward while agriculture loans are for agri-business ventures. According to Mrs. Munyiri, social or support loans have proved to be very pivotal to the ultimate success of the firm’s clients. The loans ease the concerns and woes of clients and allow them to focus on their core income generating activities. These social or support loans include education loans and micro insurance (medical cover) loans that can be accessed from the firm. The clients have also enjoyed Water, Sanitation and Hygiene -loans for constructing decent pit latrines especially in Startupmagazine.co.ke April 2018
We overcome challenges by continually improving our service delivery and listening to our client more in order to gain their loyalty.
the rural areas, loans for sinking shallow wells to avail water for consumption, irrigation and for livestock and loans for acquisition of fully fitted water tanks for rain water harvesting. Clients are also encouraged to put iron sheet roofs and gutters to harvest rain water.
Challenges Despite the firms successful operations thus far, Mrs. Munyiri observes that the industry has been riddled with a number of challenges. There is increased competition among microfinance players, new entrants as well as commercial banks downscaling to micro lending. She however shares her optimism: “We overcome this by continually improving our service delivery and listening to our client more in order to gain their loyalty.” The microfinance sector is very sensitive to social, economic and political upheaval and as such, the company has to keep tab with the developments in these fronts and advise clients accordingly. Eclof Kenya works closely with community peace groups to continuously educate clients as a way of coping mechanisms and also build on their capacity to repay loans to avoid delinquency and defaults. Going foward Eclof Kenya will continue in its quest to pursue cost effective models in a bid to scale up, serve more clients and offer financial services relevant to the market. Transforming to Microfinance Bank (MFB) is one of the options.
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The Microfinance with a difference
WE KNOW YOU FEED THE NATION Call us for quick financing options to unlock your potential VISIT US TODAY And access; •Agribusiness loans •Green energy loans •Burudika loans •WASH loans 0721 344 699 0707 661 077
Info@eclof-kenya.org ECLOF Kenya
www@eclof-kenya.org
@eclofkenya
Head Office, Royal Offices. Mogotio Rd-off Chiromo Lane Parklands. P.O Box 348889-00100. Nairobi Kenya April 2018 Startupmagazine.co.ke
Leadershi p
Perminus Wainaina
Perminus Wainaina is the CEO and Managing Partner at Corporate Staffing Services Ltd. A HR consultancy firm based in Westlands Nairobi.
Startupmagazine.co.ke April 2018
CEO Â SPEAKS; 6 Valuable Leadership Lessons I Have Learnt As A CEO From 2017
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“
bringing new ideas in the firm that can pull the organization to new heights. Remain focused; keep your eye on the prize In my profession as a HR professional working with a reputable recruitment firm, I have learnt that there are a lot of distractions in the world.
Leadership is not about a title or a designation. It's about impact, influence and inspiration. Impact involves getting results, influence is about spreading the passion you have for your work, and you have to inspire team-mates and customers.� Robin S. Sharma In all my 7 (+) years working as a CEO and leadership coach, I have gained invaluable lessons on what makes a phenomenal leader. 2017 for me was a journey of 12 months that culminated in polishing my expertise both through success and failure. Looking back, it is clear that no great CEO has had a smooth ride to the top. It is always a journey marked with struggles, strategies, passion and commitment. Having what I’ve learnt more so in the past year, I write to share with you 6 fundamental lessons I learned as a CEO and how I plan use them to better myself in 2018. What are these 6 lessons? Be open to change Change has been said to be the only constant in life and sure enough, it is. In 2017, I observed that some changes I implemented did not directly translate into the results I had expected and hoped for. On the flip side, I realized that I was rigid in terms of taking a new idea on board when in essence it would have had a positive impact on the organization. In 2018, I have become more intentional about accepting change even when it seems to be outside of the scope of the organizational mandate. Additionally, I plan to be more open-minded in terms of receiving new ideas especially when they appear unconventional. Success is built upon a vision, strategy and commitment
BE VISIONARY It is not enough to have a vision; you also need a comprehensive well detailed strategy of attaining that vision.
The process of attaining success cannot be done haphazardly. It is a thorough process that should involve a clear cut vision, a strategy of attaining the vision and an unrelenting commitment to the vision. Last year I came to understand that as a CEO, it is not enough to have a vision; you also need a comprehensive well detailed strategy of attaining that vision. Similarly, my commitment to the vision and strategy saw me attain new levels of success in my career and personal level. You must have a strong and self-driven team In my position of leadership in 2017, I realized the need to energize the team and constantly keep them motivated. In the bigger part of career path, I have been privileged to work with a team of diverse members who exhibited different personalities and skills that blended and propelled us to realizing our annual objective. In 2018, I am more prepared to take up more team members who possess a good deal of technical and ideal soft skills that will contribute towards obtaining the organizational goal. Strong-willed and diverse skilled personnel are a sure bet in
There is need to remain focused. I work in a firm that offers tailor made services for employers and job seekers; I have noted that I need to exhaust all possible opportunities in my field. In 2018, there is no room for mediocrity. Become more technologically savvy The world is becoming more and more digitalized. With competition increasing every other day, the importance of being adept with new technology cannot be over-stated. One of the crucial things I needed to learn in digitization was the intricacies of digital marketing and technological tools such as Google analytics and Search Engine Optimization. Encourage feedback mechanisms As a CEO, you must by all means champion for a system of feedback. I learned that this is how you make informed decisions that not only affect you as a leader but your team members, your clients and ultimately your organization. In 2018, I am intentional about encouraging my team to offer me feedback that is bent on bettering the organization. With this in mind, I truly hope that you can draw personal lessons from mine and become a resourceful and successful CEO.
April 2018 Startupmagazine.co.ke
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Women and Tech
Africa needs more young women in tech – here’s why Women with tech skills are key to Africa’s ability to thrive in the digital economy, says Sthe Shabangu, Lead: Public Relations, Public Affairs and Corporate Citizenship, Samsung Africa Office
Sthe Shabangu
a
s women, we’re no strangers to the stereotypes that surround our often more detailed approach to getting tasks done. Too pedantic. Too fussy. We’ve heard them all.
She is the Lead: Public Relations, Public Affairs and Corporate Citizenship, Samsung Africa Office
But the truth is there’s nothing wrong with wanting to get things right. In fact, across industries companies are starting to wake up to the unique value which women bring to the workplace. ICT, in particular, is an industry where fastidiousness is an invaluable asset. Yet, while in many ways women are a perfect fit for the ICT profession, technology and engineering are fields which remain dominated by men. According to the World Economic Forum (WEF) Global Gender Gap Report, women are still strongly under-represented in engineering and ICT. We know that in Africa specifically the challenge in growing these skills starts much earlier, with more boys than girls
Startupmagazine.co.ke April 2018
enrolled in primary school in at least one third of African countries according to UNESCO. In fact, in sub-Saharan Africa, girls who do go to school can typically expect as little as five years of education. This is a tragedy – not only because our failure to properly educate young girls is directly contributing to high unemployment rates among women – but also because our continent is missing out on the brilliant young female minds who are needed to take Africa forward into the digital economy. Bridging the divide This a major part of the reason why Samsung has thrown its weight behind initiatives like its Female Professional Electronics Body in Ghana. In partnering with organisations like GIZ and KIOCA, we hope to upskill women in technical and electronic skills so that they can more effectively compete with their male counterparts. And beyond our educational goals for a programme like this, is our hope to start changing perceptions around women in ICT and engineering. As players in the ICT space, it’s our responsibility to help break down the barriers which preclude young
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women from embarking on careers in electronics. Young women like Kate Amarh who spent two months at Samsung’s Female Academy Project learning about our various products. Kate says initially her mother was disappointed when she learnt her daughter would be enrolling at the Samsung Academy. Instead, she wanted Kate to follow in her footsteps and become a nurse. It took some convincing, but eventually Kate’s mother became her biggest supporter.
THINK BIG At the end of the day, we can’t afford to think small when it comes to tackling the challenge which surrounds gender disparity in engineering and ICT.
Through her experience with the programme, Kate says not only has her confidence been boosted, but she has also gained invaluable experience with Samsung which will serve her well when applying for a position in the electronics environment.
the skills to one day manage her own company. Comfort was raised by her grandmother after her parents passed away, and as a result didn’t have the funds for secondary education. But after time spent with the programme learning about customer service, as well as how to install and reassemble Samsung products, she now feels she has the skills to achieve her career goals in engineering and technology.
Making a bigger impact The Academy also opened doors for Comfort Pokua, who feels she now has
In South Africa, Samsung’s Engineering Academy has given Khensani Manganyi, not only renewed hope to embark on a
degree in electronics, but also to make use of her hard-earned skills to make a difference in the lives of others. Without the opportunity to study with Samsung, Khensani feels she might never have had the opportunity to pursue higher education, or even to find the means just to care for herself and her family. Now she has a dream for the future, she says. At the end of the day, we can’t afford to think small when it comes to tackling the challenge which surrounds gender disparity in engineering and ICT. It’s true that in equipping young African women with technology and STEM skills we can play an important part in helping to grow careers, but the elevation of women on our continent is about more than just individuals – it’s about our collective readiness to grasp hold of an African future of infinite possibilities. April 2018 Startupmagazine.co.ke
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Innovation
Digital transformation to drive new postal models
f Gilbert Saggia
Gilbert is the Managing Director: East Africa at SAP Africa
rom the time the first state-run courier was established by Roman Emperor Augustus in the first century AD, global postal services have slowly evolved: the first postage stamps, for example, were only issued in 1840. For nearly 2000 years, the main business of postal services was to deliver letters to businesses and citizens. The business of post was largely undisturbed, and minor innovations – such as airmail, the introduction of postcodes and ZIP codes, and express mail services – only refined and improved the traditional postal revenue model. However, following the advent of the internet and the growing pervasiveness of mobile devices and other digital technologies, postal services have seen a steady decline in their core business of delivering letters and post to recipients around the world. According to Accenture, mail contributed 55 per cent of total postal services revenues in 2007; by 2015, that figure had slipped to 44 per cent. Today, postal services face declining mail volumes, low margins in the highly-competitive parcel delivery business, competition in last-mile services, and the challenges of balancing over- and under-capacity in the postal network while ensuring constant service quality and customer proximity at a sustainable cost. In response, postal services organisations
Startupmagazine.co.ke April 2018
have diversified into a broad range of new service areas. In fact, revenue from non-mail activities such as parcels, financial services, logistics and retail exceeded that of traditional mail revenue for the first time in 2014. New postal services revenue opportunities span government services, authentication, freight, customs brokerage, data collection, payments, and more. New growth opportunities eCommerce represents a tremendous opportunity to postal services as consumers become increasingly comfortable with ordering items online from emerging eCommerce platforms, as well as traditional brick-and-mortar making the transition to digital environments. The African eCommerce market is projected to reach USD 50-billion in 2018, up from just $8-billion in 2013. As the volume of online sales increases, eCommerce providers are seeking cost-effective channels for the delivery and collection of purchased items. Postal services, with their long-established national networks and experience in last-mile delivery, are emerging as effective partners in this regard. In Kenya, for example, a partnership between online marketplace Jumia and the Postal Corporation of Kenya enables online shoppers to collect items they purchase on Jumia from a post office nearest to where they are. However, many global postal services organisations are not equipped to take advantage of this growth in eCommerce: while B2C eCommerce is growing at a global rate of 17 per cent, parcel volumes among postal services organisations have been growing at less than 5 per cent.
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Part of the issue is low adoption of digital technologies as core business and innovation drivers among low-performing postal services organisations. Where digital adoption is high, new innovations inevitably emerge: the launch of mPost by Kenya’s postal services, for example, has turned every mobile phone into a formal postal address, enabling members of the public to gain access to letters and parcels no matter where in the country they are. Maximising the traditional mail business To transform, postal services must prioritise the defence of their core business by improving operational excellence, generating new revenue streams with innovative new service offerings, and providing best-in-class eCommerce and postal services experiences to increase customer loyalty and citizen demand for postal services. This can be achieved through a process of digital transformation. By integrating
all aspects of the business into a powerful digital core, a platform is created for re-engineering business processes and transforming business models. Exponential technologies such as IoT, AI and blockchain can also be integrated: leveraging IoT in the supply chain, for example, enables postal services to better track, manage, analyse and predict key business opportunities. Predictive analytics powered by machine learning can guide decision-makers as they seek greater operational efficiency, and in the development of new revenue streams. Value-added services such as lifestyle banking can be supplemented with analytics-driven personal finance management to increase customer loyalty and optimise cross-selling and up-selling. Flexible billing options based on agile pricing strategies that charge according to weight, volume, temperature control, or delivery time can be further enhanced through tiered pricing and volume discounts to increase partner and customer satisfaction. And with a powerful digital
core, postal services can quickly scale to support massive volumes of transactions from millions of customers as the partner ecosystem grows. In fact, integrating the digital core of a transformed postal services via APIs to other businesses can further enhance growth of B2B and B2C revenue streams. This will enable businesses that already have a digital core to incorporate the postal supply chain into their business processes in real-time, thereby offering their customers end-to-end visibility value, integrity of goods, and automatic crediting and debiting of accounts via a connection to banks. One of the world’s oldest industries is at a crossroads: go all-in on digital transformation to unlock new business models and optimise existing operations or watch as their core business dwindles away. How will Africa’s postal services respond?
April 2018 Startupmagazine.co.ke
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Supply & Logistics
Mehmood Khan
By Mehmood Khan, Chief Operating Officer at SAP Africa
Startupmagazine.co.ke April 2018
The dilemma: Will the Chief Operation Officers manage to digitize supply chain in an exponential world?
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hief Operating Officers (COOs) and supply chain management are feeling the brunt of accelerating business environment further complicated by increasing customer demands for efficiency, personalization, and convenience. Slow manual processes based on inconsistent information across functional areas spell death for modern supply chain management.Inability to adapt to real time and changing demands leads to wanting customer service and potential attrition. To address these risks, companies are increasingly looking to digitize their supply chains by implementing a cloud-based digital platform that optimizes traditional ERP processes while integrating new exponential technologies. Cloud-based platforms that enable real-time decision making based on accurate big data – generated through traditional processes as well as the growing prevalence of sensors – and predictive analytics powered by machine learning is changing the way companies approach supply chain management. Accenture predicts that SaaS,driven by a need to simplify and optimize today’s complex global supply chain networks for supply chain management market will reach USD 4.4-billion in 2018. The value proposition is clear: according to studies by the Boston Consulting Group, leaders in digital supply chain management enjoy increase in product availability of up to 10 per cent, more than 25 per cent faster response times to changes in market demand, and 40 per cent -110 per cent higher operating margins. The exponential technologies driving supply chain innovation Big data matched with real-time predictive analytics permits large-scale scenario analysis giving COOs the power to conduct accurate demand forecasting, capacity planning, and advanced pro-
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curement with a focus on collaborative optimization. With the adoption of sensor technology in every facet of the supply chain and the availability of reliable all-time localization through GPS, GSM and Galileo-based positioning, COOs have wide array of data on stock opening, temperature, humidity, and more offering greater optimization of existing processes. Automation through advanced machine learning algorithms that leverage process and sensor data is propagating extreme accuracy in decision making as human judgmentbecomes augmented. By automating supply chain procurement processes through best practice machine learning, COOs and supply chain managers can eliminate opportunities for error and ensure effective event and risk management based on expert systems. However, the job of the COO and his supply chain management support to lead the organization into this exponential future is complicated by the need to manage the implications of digital transformation while simultaneously innovating the underlying business model. The digital transformation imperative Digitizing the supply chain enables companies to integrate, embed intelligence, and visualize all supply chain processes from supplier to customer. This opens the door to real-time inventory management through a redesigned data model that finally provides transparency on inventory flows. Placing a digital core at the centre of all supply chain management processes encourages daring risks, and scenario planning to identify opportunities for meeting potential market demand with high levels of service at low cost. Manufacturing costs are similarly reduced as detailed planning and scheduling aids agility within the supply chain and optimizes the efficient use of capacity. A traditional ERP simply cannot keep pace with the rate of change and the need to innovate and optimize quickly, accurately, and cost-effectively. Delivery commit-
SPEED UP A traditional ERP simply cannot keep pace with the rate of change and the need to innovate and optimize quickly, accurately, and cost-effectively.
ments based on outdated data leading to cancelled or delayed orders; inaccurate order prioritization resulting in unfulfilled strategic customer orders and difficulties in addressing last-minute rescheduling by priority customers are just but a few risks companies face when relying on an outdated technology platform for supply chain decision-making. The business outcomes of digitizing the supply chain With exponential technologies such as IoT, big data, predictive analytics and machine learning integrated to the SAP S/4HANA digital platform, COOs and supply chain management can leverage rulebased allocation check in a single system to ensure the needs of strategic customers are always met. Up-to-date inventory management ensures realistic,fulfilled commitments and real-time order confirmations with advanced segmentation techniques which in effect drives business profitability in unprecedented ways. The business outcomes can be transformative: reducing days of inventory by 1012 per cent, reducing revenue loss by 1015 per cent, cutting total logistics costs by 10-12 per cent, and reducing supply chain planning costs by up to 5 per cent. Critically, digitizing the supply chain enables companies to run easily and shift focus more towards innovation – both in terms of improving existing processes as well as developing entirely new business models and revenue streams. But with a recent Forrester Business Techno-graphic Survey showing only 27 per cent of supply chain management professionals and 22 per cent of logistics and distribution personnel using or intending to use big data analytics, the real question is, will COOs rise to the challenge of digitizing their supply chain in time to adapt to an exponential world? April 2018 Startupmagazine.co.ke
At the back
Travel & Leisure
A Maasai standing next to a cliff overlooking Lake Magadi Startupmagazine.co.ke April 2018
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A day Road Trip to Lake Magadi; The Pride of Kajiado County
The reality of living in tough economic times makes it extremely difficult to balance the ever demanding workload and desire to travel the world. We work so hard to make ends meet, get pushed to the edge with bills and most times forget ourselves. Travel becomes leisure, and time a scarce resource as we toil for more returns. Luckily,there is a way we can make most of the limited time to see the world even for a weekend. Sometimes a simple weekend out of the city will be enough to satisfy your desire for travel shares Adisa Hudson, and A Road trip to Lake Magadi is one such option.
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4 Hours Drive from the heart of Nairobi to Lake Magadi. Holds beatiful memory of remarkable wildlife experience
A scenic view of Lake Magadi
Taking about 4 hours from the Kenya’s Capital, a road trip to Lake Magadi holds beautiful memory of remarkable wildlife experience, wonderland terrain towards Nguruman escarpment and impressive bird sights with incredible opportunity to visit prehistoric sites. Making a provision for either one day trip lovers or several nights getaway,this is certainly a good adventure for those with busy schedules. Lake Magadi, hidden at the heart of Kajiado County offers an exquisite getaway for the lovers of adventure and nature hikes that will satiate your desire for fun. A visit to the beautiful Lake guarantees value for your money, getting off from the bustle of the city, networking, and just cooling yourself away from cares of the world. Magadi’s landscape provides a wonderStartupmagazine.co.ke April 2018
SIGHT TO BEHOLD Giraffes Zebras Antelopes Wildebeast ful destination for nature walks, hiking and fantastic grounds for birds breeding. The overall weather is good and offersan incredible migration routes for birds. Flamingos, marabou stalk, water ducks and the pelicans are just but a few examples of birds’ species in the lake environs. Various games like giraffes, zebras, antelopes and wildebeest are a sight to behold during the trip. Elephants, lions and even hyenas can be seen in the Shompole Conservancy.
With well-organized game drives that crystallize the trip, one is guaranteed a lifetime memories etched wild animal’s encounter at Lake Magadi. However, unless it’s a travel agency organized game drive, individual tourists need to plan in advance with the tour guides to experience the night time game drives. The hot springs which serve as a major attraction for visitors to Magadi comprises of a natural basin curved depression on the ground with fizzing hot waters. Believed to have medicinal value and ability to cure skin related ailments, a late evening or early morning bath and swimming at the hot spring is an experience you don’t want to miss. However, be careful not to take a bath during the day because it gets too hot with the overhead scorch sun
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The Jaza Train package This package of the Jaza train project is a partnership of the Magadi Soda Foundation and the TATA Chemicals rail operations department. Initially used to transport railway line maintenance workers, the train allows travellersto enjoy awonderful and fun-filled train ride from Kajiado to Magadi: the three hour drive covers a distance of about 130kms.
Trekking and Hiking
The train trolley than can carry a maximum capacity of 24 persons is divided into the following:
Cultural Maasai Boma Visit To spice up one’s stay and appreciation of Maasai culture, the visitors can be guided to do a cultural Maasai Boma visit in the manyattas and get to learn and appreciate the lifestyle and diversity of culture among the locals. Safari packages Various packages for travel to Lake Magadi are available giving visitors a myarid of options to choose from. These can be organized by travel and tour agencies if it is not a private road trip.
A ride to the nearby Lake Natron which is the breeding ground of Flamingos can be scheduled. Depending with the travel and tours agencies planning the trip, you can pay as little as 2500 for the single day road trip which is exclusive of refreshments and food. Other interesting features in Lake Magadi are: A view of Hill Of Red Roses Also known as the hill of desert red roses, the lake view point can be accessed by hiking. The site offers a magnificent view of the famous Ewaso Nyiro River and the lush grasslands surrounding it.
Trekking and hiking can also be planned on an overnight safari in the northern part of the lake – what is commonly referred to little lake Magadi. This magical little lake is detached from the main lake and separated by an island with a beautiful landscape. A natural habitat for the birds, it is typical to find eggs of birds as the tourist trek and hike around.The very handpicked eggs can be boiled in the hot springs which are too hot to touch. Body steaming in the hot spring will be advised though. Star Gazing - Night Bonfire with Nyama Choma Yet another exciting episode for those taking more than a day trip is star gazing and night bonfire adventure. Visitors on camping safari are able to enjoy the exquisite site as they roast Nyama Choma around a bonfire. During the fire, the traditional Maasai dancers entertain the visitors as they enjoy the delicacy.
to Magadi and safari back to the city is by road.
Nguruman Escarpment and Entasopia Falls Etched between Lake Magadi and Maasai Mara National park, Nguruman escarpment provides a rich water point that makes it possible for locals to farm; the luxurious green giving a deep contrast to dry savanna that characterizes the local surroundings! The waterfall at the top of the escarpment provides a great picnic.
•The front section with the seats facing the front to accommodate 8 people. •The middle section with seats facing sideways to accommodate 8 people. •The back section with seats facing backwards to accommodate 8 more people. Normally, a Safari package requires a minimum of 20 people’s and as such, group bookings are encouraged to cut the cost. The train is simple with cushioned seats, set fans and sliding windows for the travellers comfort and views.
Olorgesailie This prehistoric museum is located along Magadi Road and approximately 70kms from Nairobi town. It boasts of the excellently preserved biological and cultural evidence on the evolution of man. Any day trip safari would entail: •Road trip to Magadi en-route Olorgesailie pre-historic museum. •Game drive and Bird watching •Hiking to the view point of the lake •Hot springs bath •Swimming at the sports club •Goat roasting and nyamachoma. Now you know!
The most probable involvement would be game drives, birding, hiking, hot spring baths, swimming and bonfire. To note is that the train ride is one way April 2018 Startupmagazine.co.ke
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Coffee Break
Book Review The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses Author: Eric Ries
Reviewer: Oroni Tendera
Most startups fail. But many of those failures are preventable. The Lean Startup is a new approach being adopted across the globe, changing the way companies are built and new products are launched. Eric Ries defines a startup as an organization dedicated to creating something new under conditions of extreme uncertainty. This is just as true for one person in a garage or a group of seasoned professionals in a Fortune 500 boardroom. What they have in common is a mission to penetrate that fog of uncertainty to discover a successful path to a sustainable business. The Lean Startup approach fosters companies that are both more capital efficient and that leverage human creativity more effectively. Inspired by lessons from lean manufacturing, it relies on "validated learning," rapid scientific experimentation, as well as a number of counter-intuitive practices that shorten product development cycles, measure actual progress without resorting to vanity metrics, and learn what customers really want. It enables a company to shift directions with agility, altering plans inch by inch, minute by minute.
Startupmagazine.co.ke April 2018
Rather than wasting time creating elaborate business plans, The Lean Startup offers entrepreneurs - in companies of all sizes - a way to test their vision continuously, to adapt and adjust before it's too late. Ries provides a scientific approach to creating and managing successful startups in a age when companies need to innovate more than ever.
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Coffee Break
Blog Review Blog name: graduatefarmer.co.ke Founder:Joseph Boit Reviewer:Adisa Hudson Founded in 2015, graduate farmer has undergone massive changes in its content and grown to be one of the most trusted Agricultural information and inspiration hub Graduate farmer as the name implies is all about Hands on training and skills sharing by experts to enhance self-sustainability and resilient livelihoods through agri-business. The blog is concerned with connecting farmers in Kenya to practical hands on training in two major areas: Affordable drip irrigation, solar pumps and Agricultural information and consultancy.
Founded in 2015, graduate farmer has undergone massive changes in its structure, business operations and content and grown to be one of the most trusted Agricultural information and inspiration hub that helps equip young farmers to scale heights in the sector. With the endless outcry of many graduates for employment opportunities that have literally vanished, Graduate farmer
hopes to empower and guide the young people and women to be freed from the mindset of job seeking to that of job creators through the agribusiness value chains. Basically, the graduate farmer capitalizes on the ICT Platform to reach out to potential farmers who are then trained and taken through farming solutions and mentorship. Boit is a graduate of Bsc. Business Management and Information Technology, Business IT from Kabarak University.
April 2018 Startupmagazine.co.ke
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At the back
Song Review Title: All the Stars Kendrick Lamar ft [ft. SZA] Review by Sheldon Pearce
Recently, some blockbuster superhero films have brought the worst out of pop music, leaning into their huge budgets to create mismatched team-ups no one asked for. Think Suicide Squad pairing Lil Wayne, Wiz Khalifa, Ty Dolla $ign, and Logic with Imagine Dragons and X Ambassadors or Bright force-feeding us a Migos/Marshmello mashup. So at first pass, it was welcome news that Kendrick Lamar and Top Dawg Entertainment CEO Anthony “Top Dawg” Tiffith will curate and produce the soundtrack for Marvel’s Black Panther. The decision threatened to finally shake things up for comic book cinema, giving rap’s greatest risk-taker his largest canvas. But if “All the Stars,” the soundtrack’s first single featuring Kendrick and SZA, is an early indicator, Black Panther: The Album is doomed to the same fate as its predecessors.
Startupmagazine.co.ke April 2018
It makes sense that Black Panther director Ryan Coogler chose Kendrick for this
project: The Compton artist has a natural cinematic flair. (good kid, m.A.A.d city was literally billed as a “short film.”) But “All the Stars” is so generic, so nondescript, that it reeks of compromise, devoid of personality or any true vision. There isn’t anything memorable about the writing or performing; Kendrick and SZA may as well be stand-ins. That isn’t to say the song is unlistenable; Kendrick raps well enough about conflict and resolve and SZA delivers a big, hopeful anthemic hook over the slick production’s streaking synths and stamping drums. The song makes for decent set-dressing, but it pales in comparison to their recent works, and is full of heavy-handed plotting and everyman cliches: “This may be the night that my dreams might let me know/All the stars are closer,” SZA sings. “All the Stars” is uncharacteristically conservative for these two stars, all in service of a bigger picture.
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April 2018 Startupmagazine.co.ke
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