A New Dawn for Zimbabwe?

Watch our interview with the Honorable SB Moyo, Zimbabwe's Minister of of Foreign Affairs and International Trade at The Annual Debate 2018. 

The Annual Debate 2018 brought together Alec Russel, Editor of the FT Weekend, and Honorable SB Moyo, Zimbabwe's Minister of of Foreign Affairs and International Trade, for a much anticipated interview. After the events of 2017 brought about new leadership in the form of President Emmerson Mnangagwa, Zimbabwe post-Mugabe has initialized a shift internally - and internationally - to make the nation one of free and fair elections, as well as a business-friendly environment; as seen in the President's words in Davos this January: 'Zimbabwe is open for business'.

Honorable SB Moyo, as Zimbabwe's Minister of of Foreign Affairs and International Trade, is leading the way in transforming the nation's international investment reputation. In conversation with Alec Russel, the Minister addressed the question; 'Zimbabwe: A New Dawn or More of the Same?', focusing on the country's coming elections in July, and their commitment to a free, fair and transparent process. Minister Moyo said: “this is the time to end isolation. We have taken a strategy of re-integration with everyone from the the global village so that Zimbabwe can participate in the global economy without any hindrances.”

The Path to Inclusion is Mobile: An Interview with Ibukun Awosika

It may be a slow process, but financial inclusion in Africa is improving. Given the barriers formal banking faces on the Continent, including practical issues such as dispersed populations, and regional variations in infrastructure, it is unsurprising that this is not an issue which will be resolved overnight. As of 2014, 34% of those in Sub-Saharan Africa had a bank account – leaving approximately half a billion people in Africa unbanked.  

The popularity and accessibility of the mobile money account – almost six times more utilized in Sub-Saharan Africa than anywhere else in the world – is a good sign for financial inclusion, putting many on the path toward accessing formal financial institutions. In Nigeria (in 2015), one of the biggest economies on the Continent, approximately 45% of the population did not have a debit card or access to a financial institution account. 

This is figure is on the wane however, perhaps partly as a result of the efforts of one bank putting financial inclusion are the forefront of their strategy – First Bank of Nigeria. With campaigns designed to provide financial literacy early-on, as well as reaching underserved markets including young people and students, FirstBank has been committed to leveraging mobile technology in order to improve financial inclusion in Nigeria. Hoping to grow their customer base from 14.5 million accounts in 2017 to 30 million by 2021, they've also bolstered their mobile money services through their brand Firstmonie. Firstmonie agents are positioned in communities with low rates of banking penetration, allowing customers in rural locations to open accounts and access FirstBank services – with the hope that convenience and locality will fuel financial inclusion.  

“Individuals and businesses are increasingly adopting digital payments and financial accounts ... unleashing large gains in productivity and investment, and prompting greater financial inclusion”

— Ibukun Awosika

The face of these efforts is, to a great extent, FirstBank of Nigeria's Chairwoman, Ibukun Awosika. The first female chair of the bank, Ibukun Awosika has overseen the implementation of their FirstGem account, specifically designed for women and female entrepreneurs. At FirstGem's first anniversary at the end of last year, she announced “we will not stop until every Nigerian girl-child has found their voice and found their pocket.” Embracing the new possibilities of mobile tech, FirstGem not only supports women entrepreneurs through training and research, but fosters relationships through its provision of a virtual community for its users. 

Ibukun Awosika, Chairman, Board of Directors, First Bank of Nigeria Limited

We spoke to Ibukun Awosika to find out more on First Bank Nigeria's actions on financial inclusion, her thoughts on improving access to banking services – plus the impact of mobile in Africa.  

In your opinion, what is the most significant issue hindering inclusive financing in Africa?   

Financial services are the lifeblood of an economy, enabling households and businesses alike to save, invest, and protect themselves against risk. However, in emerging economies today, the majority of individuals and small businesses lack access to even basic savings and credit products, hindering economic growth. An estimated half a billion individuals in Africa today are financially excluded. 

Success in financial inclusion entails reaching these users with products that can significantly improve financial lives. Specifically, the issues of distribution, product development, and financial inter-mediation will need to be tackled at scale. It is also important that an optimal regulatory framework exists to properly incentivize all stakeholders (banks, non-bank financial institutions, mobile network operators, agents, etc.)  

The 2014 Africa Progress Report found that only one in five Africans have any form of account at a formal financial institution – how much progress do you believe has been made in the last five years?  

In recent years, mobile technology has been instrumental in driving financial inclusion on the continent. In addition, disruptive new entrants continue to gain ground. Individuals and businesses are increasingly adopting digital payments and financial accounts to interact seamlessly and efficiently, unleashing large gains in productivity and investment, and prompting greater financial inclusion. 

In Nigeria, the Central Bank is fine-tuning its policy around agency banking as a strategy to tackle the distribution problem. Agency Banking is expected to provide services such as cash withdrawal and deposit, bill payments, payment of salaries, funds transfer and balance inquiry through the use of mobile phones and mobile banking.  

FirstBank recently launched their digital platform for women, FirstGem. What do you hope to achieve with FirstGem?  

At FirstBank we recognize the importance of women in driving socio-economic growth.  

The FirstGem platform includes benefits which empower women to achieve their financial goals and lifestyle aspirations. With FirstGem, our female customers – whether working class women, business owners or students, FirstGem is suitable for a broad range of women – customers enjoy a range of services, such as advisory services on wealth creation and investments and business advisory services on business funding. In addition, they have the opportunity to benefit from specialized training on business development initiatives (online and in-class), regular insights on business opportunities and openings in various sectors and industries, and discounts at merchant outlets that offer lifestyle products and services (spas, grocery stores, event centres, etc).  

You're FBN's first Chairwoman - what have you found most exciting about this position?  

The hope and aspiration that my appointment has kindled in many women across many generations that they can get to the top of anything they apply themselves to. 

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To hear more from Ibukun Awosika, join us at The Annual Debate 2018, where she will be speaking on our panel Inclusive Financing in Africa. 

A Continent 'Poised for Growth': Olam on diversifying Africa's Industrialisation

Last year, President of the African Development Bank Dr. Akinwumi Adesina wrote that 'no region of the world has ever moved to industrialised economy status without a transformation of the agricultural sector'. As industrialisation continues to be held as the crucial step towards economic development in Africa, much energy has been poured into the potential for the Continent's manufacturing and heavy industry sectors. The conversation about Africa's industrialisation, however, cannot exclude a crucial driver of its economy – the agricultural sector. 

Agriculture already contributes considerably to Africa's GDP at 15%– although this can vary significantly, ranging from 3% in South Africa to 50+% in Chad. Despite this diversity, agriculture has an enormous impact in employment, with over half of Africa's population involved in agriculture in some capacity. Yet there remains that much cited statistic, that in the face of vast agricultural potential the Continent actually imports US$35bn worth of food each year. 

“people have the misconception that industrialisation is only about machinery – we take a broader view. There are opportunities for industrialising all sectors, including agriculture which is still the biggest job creator across Africa”

If in the process of industrialisation Africa embraced its agricultural sector, it would not only have the potential to feed itself - but if with the right infrastructure, the chance to capitalise on the growth of its exports. Agriculture in Africa could provide more than poverty reduction; it could be a pillar of wealth creation and self-sufficiency. Indeed, this is already the ambition held by Olam, an international agri-business which has been operating in Africa since 1989, when they established themselves in Nigeria.  

Today, Olam has operations in all African regions, with a presence in twenty-five countries across the Continent. In Nigeria, the launchpad for their African endeavors, they have had a transformative effect in the country's agri-business sector – investing around US$1bn during their time there. This investment has gone into procuring and processing agricultural products, as well as rice milling and wheat milling infrastructure, and has helped drive Nigeria towards its ambitions - not just of self-sufficiency, but of becoming a global export power.  

We spoke to Venkataramani Srivathsan, CEO of Olam Africa and Middle East, to find out more about the impact of their work in Nigeria, his thoughts on the role of industrialisation on the Continent – and his key advice for those looking to invest in Africa. 

Venkataramani Srivathsan, Chief Executive Officer, Olam Africa and Middle East

You're speaking on our panel, Driving Africa's Industrialisation: Now or Never. In your opinion, what role does industrialisation play in Africa's economic development?  

We see three big positives. First, it directly drives job creation. Secondly, industrialisation enables greater value-add within each market by allowing it to move further up value chains. Thirdly, this in turn allows Africa to be less dependent on imports and move towards greater self-sufficiency. There is a clear multiplier positive effect at play.  

I would add here that people have the misconception that industrialisation is only about machinery – we take a broader view. There are opportunities for industrialising all sectors, including agriculture which is still the biggest job creator across Africa. There are so many low-hanging fruits that if harvested, can significantly improve economic and social development.  

Indeed - Olam has worked for many years building Nigeria's agricultural sector. Beyond Nigeria, are Olam looking to increase their presence in Africa?   

We will always be focused on growing in Africa - Olam was born in Nigeria 28 years ago. Africa is one of the strategic pillars for Olam. Africa is at a pivotal point right now, and is poised for growth. The headwinds of the past few years have served as a catalyst for further diversification of African economies, and we believe there is a real opportunity for Africa to leapfrog past many other developing regions if macro and policy trends continue on their positive trajectory. 

We have always been passionate about Africa. Africa’s unique features offers ideal land and climate conditions for companies to grow responsibly in the agricultural sector.  

The African Continental Free Trade Area Agreement was established last month – do you believe this will have an effect on Africa's industrial progress?   

We welcome the landmark development of the first Pan-African FTA - free and open markets will be beneficial for all. It is a tremendous opportunity that can lead to increased intra-Africa trade, higher job creation and improved trade flows. But it is crucial that Africa’s leaders are committed to fully participating in the FTA to ensure mutual growth. 

“The headwinds of the past few years have served as a catalyst for further diversification of African economies, and we believe there is a real opportunity for Africa to leapfrog past many other developing regions”

What would be your key piece of advice for global investors looking to invest in African industry?   

You have to be committed to Africa long-term to build a successful and enduring business. We invested some S$1.89 billion across Africa over the years – not just we believe in its opportunities but also because we want to grow together with it.  

Africa is also not a singularity; it is a collective of 54 different countries – more than in Asia or Europe. You cannot simply replicate business models that worked elsewhere. Neither will success come by managing from afar - you have to have boots on the ground. Instead, think about Africa in economic clusters – coordinating a collective of near and similar economies to derive scale and synergy. 

Which of our speakers at The Annual Debate 2018 are you looking forward to hearing from?   

The Annual Debate brings together leaders with a wealth of experience and expertise across various fields. I look forward to hearing all their views. 

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To hear more from Venkatramani Srivathsan, join us at The Annual Debate 2018, where Sri will be speaking on our panel, Driving Africa's Industrialisation: Now or Never.  

Africa's Road to Industry: An Interview with Geoffrey White

It has long been understood that if Africa is going to meet the United Nations' Sustainable Development Goals for 2030, there is no more efficient path to fulfilling this than industrialisation. The impact of industrialisation will, of course, vary by nation, but its potential for sustainable job creation, innovation in technology, and skills development means Africa's industrialisation process holds huge promise for the eradication of poverty. Given the millions of young people joining Africa's labour force each year, industry holds the key to the Continent's inclusive development.

Indeed, Africa is already showing signs that it may be the economic powerhouse of the future – if it manages to take these crucial steps toward sustainable industrialisation. Ground has already been made in the form of last month's African Continental Free Trade Agreement, an unprecedented move to improve intra-African trade and facilitate the relationships for structural transformation. UNECA's research has suggested that the success of the agreement could increase intra-Africa trade by 52%, fuelling the Continent's manufacturing exports and allowing the sector to develop.

Yet beyond these agreements, there is still much work to do on the ground. Business continues to struggle with poor infrastructure: unreliable power supply, transport links, water and sanitation. The effect of limited road connections is estimated to add 40% to transport costs in Africa's costal nations – and 60% to landlocked ones. With the rate of population growth and urbanisation outpacing other nations worldwide, the necessity for infrastructure to support African development is vital.

“The new free trade area agreement will create a single open market of 1.7 billion people with an estimated US$ 6.7 billion of consumer spending.”

— Geoffrey White, CEO, Agility Africa

One such company working to meet this need is Agility Africa. Led by CEO Geoffrey White, Agility have brought international standard logistics to Africa's emerging markets, supporting business by providing the crucial infrastructure. With a focus on developing distribution parks across the Continent, Agility's parks are facilitating sustainable business, creating a reliable platform for others to operate on within the African market. In doing so, Agility are providing a springboard for the growth of African business, and a route to exporting Africa's goods internationally.

We spoke to Geoffrey White to find out more about the impact of Agility Africa's projects, his thoughts on the role of industrialisation on the Continent – and, of course, who he's most excited to hear from at The Annual Debate.

Geoffrey White, Chief Executive Officer, Agility Africa

You're speaking on our panel, Driving Africa's Industrialisation: Now or Never. In your opinion, what role does industrialisation play in Africa's economic development?

Industrialisation is fundamental for economic growth, jobs and prosperity. Without the benefits of industrialisation Africa will continue to struggle to compete in global export markets. Goods and services in Africa remain amongst the most expensive in the world as the majority need to be imported. This supports manufacturing based economies outside of Africa, not those in Africa.

The African Continental Free Trade Area Agreement was established last month– do you believe this will have an effect on Africa's industrialisation?
Low inter-regional trade in Africa, which is only 12% currently compared to 50%+ in developed markets, is a major constraint to economic development on the Continent. The new free trade area agreement will create an single open market of 1.7 billion people with an estimated US$ 6.7 billion of consumer spending. The challenge is getting all countries aligned on the agreement and the implementation and ensuring the easy movement of goods cross border. Africa as a whole will benefit significantly as it will be more attractive for investment and the dependency on imports will be able to be reduced.

You spoke in 2015 on Agility's five-year plan to invest $4bn into African distribution parks – what impact has this project had?
International standard warehousing is one of the central foundations of economic development. Our funding and development of warehouse parks permit multinationals to enter Africa on a capital light model, making their investment decisions less risky, simpler and much faster. Our unique SME warehouse programme provides the essential warehousing that small businesses need to expand and grow without having to raise expensive funding for non core infrastructure. We now have warehouse park projects open or under construction in Ghana, Cote D’Ivoire, Mozambique, and Nigeria with additional locations to follow in 2019 in Kenya, Tanzania, Uganda and Angola. We also have built to suit sites available for customers in Djibouti, Senegal, Mauritius and Cameroon.

“Africa is for those willing to make long term, sustainable investments and those that keep their business focused and simple, addressing the needs of the Continent, will see significant upside over time.”

— Geoffrey White, CEO, Agility Africa

Are there any specific Sub-Saharan African markets you're particularly interested in developing?
The Agility Africa strategy is to fund and develop warehouse capacity to support the growth in all the major cities in Africa. The initial focus is on delivering our initial top ten locations : Cote d’Ivoire, Ghana, Nigeria, Angola, DRC, Mozambique, Tanzania, Kenya, Uganda, Ethiopia. Thereafter we see additional projects being developed across the Continent to establish a pan African warehouse network that delivers one part of the essential infrastructure that is instrumental to the development of regional trade.

What would be your key piece of advice for global investors looking to invest in African industry?
I think the macro economic opportunity is very attractive but it is important to understand your market and align your product offering with the real growth in demand. The main challenges are around project execution and hiring, developing and nurturing quality human resources.  Africa is for those willing to make long term, sustainable investments and those that keep their business focused and simple, addressing the needs of the Continent, will see significant upside over time.

Which of our speakers at The Annual Debate 2018 are you looking forward to hearing from?
Arnold Ekpe. His practical experience across Africa always gives him a unique insight into African macro economics.

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Hear more from Geoffrey White, join us at The Annual Debate 2018, where he will be speaking on our panel, Driving Africa's Industrialisation: Now or Never.

Bigger than the Banks: Natalie Jabangwe-Morris on Africa’s movement to mobile money

The wave of mobile phone use in Africa has not only connected individuals to each other, but has connected many people to mainstream financial services for the first time. In regions where populations were majority unbanked, access to mobile technology has simultaneously unlocked mobile money, and spurred economic growth in societies previously run on informal, cash-based finance. By the end of 2016, the number of registered mobile money accounts in Sub-Saharan Africa stood at 277 million.

It was platforms like Kenya’s M-Pesa that changed the game and paved the way for mobile money innovation in Africa – and those such as Zimbabwe’s EcoCash are continuing this movement to digital cash. Established in 2011, in the first 18 months of doing business EcoCash registered 31% of Zimbabwe’s adult population – with 22% of Zimbabwe’s GDP passing through the platform. Its explosive popularity has seen the platform eclipse the traditional banks and has created a bridge between the informal and formal economies, transforming the way many Zimbabwe’s handle their money.

“On average, mobile phone penetration in Sub-Saharan Africa is above 70%, mobile is a ubiquitous channel for serive delivery, across multiple sectors.”

— Natalie Jabangwe-Morris

We spoke to Natalie Jabangwe-Morris, CEO of Ecocash, on the explosion of mobile money in Africa, the future of EcoCash – and, of course, who she's most excited to hear from at The Annual Debate.  

You're CEO of EcoCash, EcoNet's mobile payment platform. Where do you think EcoCash has had the biggest impact to date?

Natalie Jabangwe-Morris, Chief Executive Officer, Ecocash

In changing the financial inclusion stratification in Zimbabwe, to an extent Africa. Before EcoCash was launched in 2011, Zimbabwe only banked 10% of its population. 6.5 years on, EcoCash banks 80% of the adult population of Zimbabwe. We have 8 million registered customers, with these, EcoCash accounts for over 70% of the country GDP and is bigger than all banks amalgamated. EcoCash accelerated financial services distribution in Zimbabwe, beyond what local banks achieved in their 100 years of operation. We also launched the first mobile-card wallet in Sub-Saharan Africa. For these milestones, EcoCash is the uncontested recipient of the 2017 Mobile World Congress GLOMO Award – Best Mobile Payment Solution.

It's estimated that six times as many people use mobile money in Sub-Saharan Africa than the global average. Why do you think mobile money has proved so popular on the continent?

Traditional banking has been largely prohibitive than inclusive, with specifity to emerging markets. Financial services eligibility in Africa is largely based on the antiqauted models of collateralisation and employment. In Africa, employment is largely informal & entrepreneurial. The mass economy is not top-down, as would be constructed in developed markets, it’s bottom-up. Bankers have missed out on those portfolios of the unknown, completely failed to profile and rearrange them to offer services through a channel that is pervasive – the mobile phone. On average, mobile phone penetration in Sub-Saharan Africa is above 70%, mobile is a ubiquitous channel for serive delivery, across multiple sectors.

“60% of Africa’s population fall under the age of 25, these are the digital natives, today, connectivity will be imperative to improving access to finance for this demography.”

— Natalie Jabangwe-Morris

You're speaking on our panel The Digital Dividend: Leveraging the Power of ICT. How crucial do you think connectivity is to improving access to finance in Africa?

The gains have already started to emerge. In the last 10 years alone, Africa now has a total of over 100 million active mobile wallets, this is one in every 10 adults and far exceeds South Asia, the second largest continent, by adoption of mobile payments wallets, sitting at 40 million active accounts. 60% of Africa’s population fall under the age of 25, these are the digital natives, today, connectivity will be imperative to improving access to finance for this demography. There are more mobile phones than there is ownership of toothbrushes in rural Africa, on a 1:1 ratio, tells you already, that connectivity is priority! Nothwithstanding cable access to the internet, this will inevitably drive new ways of commerce and affordability in new access to services, electronically.

You're one of the youngest CEO's to run a mobile money business in Africa. What has been most exciting about leading EcoCash?

EcoCash has a very young, dynamic and talented team. Driven on a culture of disruption, ability to fail fast and empowered to experiment, responsibly of course. This has been by far, the most rewarding experience. We execute swiftly, and are passionate about transformation, today! We get our thrill form seeing how impactful our solutions are at market. Needs must! A sheer belief in solving challenges through meticulous application of technological solutions. It’s my first job in Africa, after developing my financial technology career in retail and investment banking across Europe and the US and to come home and replicate world class, in Africa, has been ultimately fulfilling.

Ecocash already enables its customers to transfer money, pay for goods and services, access loans, buy airtime – where are you looking to take EcoCash in the future?

Difficult question, there is infinite opportunities in fintech, particularly on the African continent. Banks have dominated for too long, but I doubt they know well enough how to analyse unfamilair profiles, productise and monetise, aptly. A convergence of connectivity, telecoms data profiling for financial services offering, opens up other unchartered domains – for example, targeted credit. Beyond this, access to markets, if you have a wallet you must be able to pay regional, at most, global. Admittedly, foreign exchange regulation remains a challenge across Africa, but who knows what blockchain will deliver in solving for this.

Which of our speakers at The Annual Debate 2018 are you looking forward to hearing from?

All speakers, actually! I love to learn anew. So, really looking forward to all interactions.

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Hear more from Natalie Jabangwe-Morris, join us at The Annual Debate 2018, where Natalie will be speaking on our panel The Digital Dividend: Leveraging the Power of ICT. 

Connecting the Unconnected: Akinwale Goodluck on supporting Africa’s Mobile Revolution

There is a mobile revolution unfolding in Africa - a revolution not only in how people communicate – but how they do business. Throwing off long-held assumptions about Africa’s technological development, the Continent’s populations are taking up the mobile phone – and its access to the internet – in their droves.

Indeed, Africa has embraced mobile uptake on an overwhelming scale. The World Bank reported in 2014 that 12% of those in Sub-Saharan Africa had a mobile money account, compared with a global average of 2% - and the disparity is likely to be even more significant today. Sub-Saharan Africa’s compound annual growth rate for mobile subscribers is 50% higher than the global average – estimated to hit a billion subscribers by 2020. 

“It’s estimated every 10% of mobile broadband penetration adds 0.1 to 0.2% to an African nation’s economic growth.”

— Akinwale Goodluck, Head of Africa, GSMA

The economic implications of this growth are already very visible; with mobile technologies generating 7.7% of Sub-Saharan Africa’s GDP in 2016. Such opportunity needs to be nurtured however, ensuring that connectivity is inclusive, innovative and designed to bring together both public and private sector interests. These are the goals which GSMA, who represent mobile operators internationally, are committed to pursuing in Africa – and to great success. Incubating African technology start-ups and working with mobile operators to support the UN’s Sustainable Development Goals through digital innovation, as well as providing comprehensive industry research - GSMA are a vital voice in a rapidly expanding sector.

We spoke to Akinwale Goodluck, Head of Africa at GSMA, on the challenges facing Africa’s connectivity, the company’s work with Africa tech start-ups – and of course, who he’s looking forward to hearing from at The Annual Debate 2018.

Akinwale Goodluck, Head of Africa at GSMA

You're speaking on our panel The Digital Dividend: Leveraging the Power of ICT. What do you believe is the greatest challenge facing Africa's expansion of digital connectivity?

I believe the greatest challenge to the expansion of digital connectivity in Africa is the affordability paradigm. Affordability is crucial if we must connect everyone and everything ultimately in Africa. Low purchasing power coupled with high total cost of mobile ownership presents a challenge for all players and an opportunity for innovation, a paradigm shift by all stakeholders and a commitment to universal access and mobile broadband services.

There is a need for governments in Africa to make spectrum but most importantly, the lower bands (700Mz and 800MHz), available to MNOs at a fair cost and with less restrictions regarding how or what technology it employs. This is the trade-off between treasury receivables / budget deficits and the overarching objective to connect everyone.

MNOs must also look at new innovative ways to connect the unconnected and they must embrace practices that promote network and infrastructure sharing, lower power cost, reduced roll out cost and address local markets.

Government and industry must work together to remove or reduce punitive sector specific taxes - in some countries the compounded tax burden on mobile operators exceeds 50%. This is something which must be reduced when considering that it’s estimated every 10% of mobile broadband penetration adds 0.1 to 0.2% to an African nation’s economic growth.

GSMA's Mobile Development Programme is helping to achieve the UN's Sustainable Development Goals. Where has the programme had an impact so far?

Mobile is the single technology which cuts across geographies, cultures and income levels in bringing the Sustainable Development Goals to life.  The GSMA has a collaborative approach between two programmes: our donor funded initiatives through the Mobile for Development programme delivers innovations with socio-economic impact in financial services, health, agriculture, water and energy amongst others, across our footprint in the sub-Saharan Africa region. Globally in emerging markets, our work has impacted 30 million lives across 49 countries. On the other hand, the Industry purpose programme highlights our commitment to playing a leading role in the achievement of the Sustainable Development Goals (SDGs).

Ours is the first large industry to align itself to the SDGs; stating a clear intention to contribute and advance the societies in which we operate i.e. connecting everyone and everything to a better future. Through our initiatives such as the Case for Change and Big Data for Social Good the mobile industry is building a better future for people and communities everywhere through innovation and partnerships conducive to meaningful impact. Real Stories by millennials from different countries in the world, including Kenya and Tanzania, have brought to life the impact of mobile in access to affordable health care and information, particularly for our vulnerable citizens such as Mothers and their young children.

“We’ve noticed more start-ups are leveraging mobile technology to scale their innovation. ”

— Akinwale Goodluck, Head of Region, Africa GSMA

According to GSMA's research, 270 million people in Sub-Saharan Africa now access the internet through mobile devices. What actions do you see as vital in continuing to improve connectivity across the continent?

Digital literacy is a vital tool for increasing and improving adoption of connectivity in Africa. The promotion of basic digital education & skills and the creation of tool kits like the GSMA Mobile Internet Skills Training Toolkit (MISTT) makes available, a set of resources for organisations (including mobile operators) interested in promoting the fundamental skills via the most commonly used internet services (WhatsApp, Facebook, Google, YouTube and Wikipedia).

The availability of local relevant content will be critical and vital for bridging the digital divide. More work and investment are required to stimulate the demand side. Most Africans particularly in the rural areas see no connection or value in the internet as its content remains largely alien in form and substance.

GSMA are working with multiple mobile tech start-ups in Africa through your Ecosystem Accelerator - what do you believe is currently the most exciting technological prospect coming out of Africa?

The GSMA Mobile for Development’s Ecosystem Accelerator Programme currently has a portfolio of 15 startups spread across multiple markets in Africa. Our portfolio of startups represent mobile-led innovations in multiple sectors including agriculture, education, financial inclusion, health and transportation. Most of our startups in Africa leverage mobile money to both pay suppliers and collect payments from customers. Additionally, startups leverage mobile platforms, both on apps and USSD, to deliver products and services fast, cheaply and efficiently.

Over the last 3 years the programme has been in existence, we’ve noticed more start-ups are leveraging mobile technology to scale their innovation. Innovation is sprouting from several industries. With agriculture being a pillar of most African countries, AgriTech is emerging as one of the leading innovation verticals. Our recent calls for the innovation fund applications, EdTech has been one vertical that’s attracts a host of applications. We have 2 EdTechs in our current portfolio. InsureTech is also coming up strongly as insurance companies try to adopt technology and more of the African population take up more insurance products.

Which of our speakers at The Annual Debate 2018 are you looking forward to hearing from? 

This is a very difficult question to answer but if I had to answer my bucket list will include Atiku Abubakar and Ana Hadjuka–Shields.

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Hear more from Akinwale Goodluck, join us at The Annual Debate 2018, where Akinwale will be speaking on our panel The Digital Dividend: Leveraging the Power of ICT.

Tech transformations: American Tower Corporation on building Africa’s broadband

If there is one way of charting Africa’s turn to connectivity, it is in the rise of the mobile. Mobile subscription continues to grow in Africa, outpacing every other region worldwide. A crucial driver of this is the demand for internet access, and it is a drive which is changing the way Africa is communicating, socializing – and doing business. 

“Mobile technology is the primary way for consumers and enterprises to communicate; access the internet and drive economic growth. ”

— Hal Hess

With this in mind, perhaps it was only a matter of time until American Tower Corporation, one of the US’s largest broadband and wireless technology operators, would develop an interest in the Continent. After successfully establishing themselves in the developing broadband markets of South America, ATC turned their sights to Africa, where an explosion in the population, to a billion people was promising an expanded market – and a whole generation of new internet users.

Regional internet users stood at 110.9 million in 2010, when American Tower Corporation began operation. This figure has been dwarfed by internet use today, with unique subscribers in Africa expected to reach 725 million by 2020. Similarly, American Tower Corporation have gone from strength to strength – since 2010 ATC have established sites across South Africa, Ghana, Uganda and Nigeria; constructing over 8000 towers as part of their wireless network deployment.

“There is also a positive correlation between the diffusion of mobile broadband and a country’s economic development in terms of GDP”

— Hal Hess

We spoke to Hal Hess, President of Latin America and EMEA at American Tower, on the transformation of Africa’s ICT sector, the impact of connectivity on the Continent – and markets American Tower are most excited about going forward.

Hal Hess, President, Latin America and EMEA, American Tower International

You're giving our keynote address on the transformation of Africa’s ICT sector. How crucial do you think connectivity is to development in Africa?

Connectivity is vital to driving continued development in Africa, and we believe that mobile broadband has the potential to fundamentally transform people’s lives for the better in a number of different ways - everything from improving the region’s economies, to enhancing access to information to the most simple element of improving the ability to communicate with your friends and family.

There are very limited fixed line deployments in most African countries. Therefore, mobile technology is the primary way for consumers and enterprises to communicate, access the internet and drive economic growth. For example, in two of our largest markets in the region, Nigeria and South Africa, less than 1% of the population has access to fixed line communications, meaning that mobile connectivity represented the first opportunity for most Nigerians and South Africans to have access to communications services.

There is also a positive correlation between the diffusion of mobile broadband and a country’s economic development in terms of GDP. A joint study conducted by Ericsson and Imperial College London suggests that a 10% increase in mobile broadband adoption may drive a 0.6 - 2.8% increase on average in economic growth.

It was reported recently that broadband providers were increasing their investment to meet Africa's surge in demand for data. What's key to sustainable improvement in Africa's digital infrastructure?

Sustainable improvement in digital infrastructure is in many ways predicated on maintaining a predictable and fair regulatory environment, which in turn helps to ensure access to capital and allows for transparency throughout the value chain. This includes reasonable spectrum policies, fair tax regimes, measured rules and regulations governing technology, as well as incentives for technology investment.

“We are now looking to play an expanded role in driving industry-wide efficiencies throughout global markets – a great opportunity for us to do that is in Africa”

— Hal Hess

Having this visibility enables infrastructure providers to most efficiently allocate capital and enter into long-term contracts that serve as the backbone of wireless infrastructure investments, which drives further investment and continued improvement. As a result, we carefully assess the government and regulatory frameworks before entering a market to ensure they have the necessary government, judicial and regulatory framework for us to accurately assess the investment cases in the market.

You entered Ghana and South Africa in 2011, Uganda in 2012, Nigeria in 2015 - where is next for American Tower Corporation? Are there any markets you're especially interested in seeing develop?  

We’re always looking for potential incremental investment opportunities. Our first preference for additional investment would be to add more scale in our existing markets given we have the necessary infrastructure in place to support incremental portfolio growth.

We would also be interested in expanding to other markets in the region assuming they pass our three gate investment criteria. Firstly, meeting governmental/legal requirements; democracies with independent judiciaries and legal systems based on Western European tradition. Secondly, a competitive wireless market; at least three strong wireless carriers capable of making long-term investments in their networks, markets with recent or upcoming spectrum auctions and reasonable regulatory regimes. Finally, the potential for scale; attractive entry point with path for us to build a nationwide portfolio and become the largest or second largest tower company

American Tower Corporation is a global provider of wireless communications infrastructure, where do you believe the company has made its biggest impact to date?

We’re proud of our well-diversified portfolio of more than 160,000 sites across 16 countries and five continents, and believe that we have played a significant role in expanding access to broadband connectivity for billions of people within those markets.  Our contributions have been different depending on the geography and timing along the continuum of the evolution of wireless ecosystems.

In the United States, we were a founding company in the creation of the independent tower model that commercialized wireless infrastructure owned by the mobile network operators (MNOs), which partly financed the expansion of the wireless broadband industry. This led to our 2010 investments in Africa, first in South Africa and later in Ghana, Uganda and Nigeria, increasing competition and helping to accelerate the deployment of advanced wireless services.

We strongly believe that the independent tower model is the most efficient way to deploy today’s modern wireless networks in the vast majority of geographies. Our focus continues to be not only on driving strong total returns for our shareholders, but also on helping to incrementally drive global connectivity - and that goal applies to all of our served markets.

Additionally, we are now looking to play an expanded role in driving industry-wide efficiencies throughout global markets – a great opportunity for us to do that is in Africa where we are working hard to improve the fuel efficiency of our sites and to drive costs down for the wireless ecosystem as a whole. If we are successful, we are optimistic that the pace of development can be further accelerated, benefiting not only our company, but also the people who reside where we operate.

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Hear more from Hal Hess, at The Annual Debate 2018, where he will give a keynote address: Leaders in the Transformation of Africa's ICT Sector.

Africa as a Work in Progress: An Interview with Zemedeneh Negatu

The 'Africa Rising' narrative that took hold of the Continent's global image at the start of the new millennium was a welcome change to that which had come before it; a period where Africa's economy was cast as stagnant and unrewarding. 'Africa Rising' was swept along with a worldwide boom in emerging market investments, and there was a sense that the continent was stepping onto the path of ascent that Asia had walked in the previous decades.

The mistake was, perhaps, the expectation that such regions would develop at the same rate, or in the same direction. With growth faltering across sub-Saharan Africa since 2015, the 'Rising' narrative has been put to the test under the burden of poor commodities prices – particularly the decline of oil prices in 2015/16, which saw African giants, Nigeria and Angola, stumble into economic contraction.

“Africa is enormously wealthy driven by two key elements: millions of talented young people who can provide a huge workforce to power the global economy and second, the abundant natural resources the continent has, without which the modern global economy can’t function.”

— Zemedeneh Negatu, Global Chairman, Fairfax Africa Fund

Investors would not be blamed for questioning the effectiveness of their efforts in such a climate. But there were also those who went against the warnings of skeptics, and paid greater heed to trends of a booming middle-class and a huge demand for infrastructure investment. Today, economic growth in Africa is on the upswing and those like Fairfax Africa Fund, who began their investment in 2012, continue their commitment to investing in Africa.

With a planned oil refinery project worth $4bn, Fairfax's recent investments have drawn them to East Africa, with an ambitious infrastructure investment looking to provide Ethiopia and it's neighbours with 120,000 barrels of crude oil a day. Through financing as private equity and venture capital, the fund has created a profile of investments across manufacturing, agriculture and infrastructure - including co-investing in Hello-Cash, a leading mobile payment platform. By refusing to shy away from the challenges posed by investing in Africa, the fund has focused on high-performing sub-Saharan Africa nations and now enjoys a portfolio of companies employing more than 1,600 people - projected to reach 6,000 by 2020. 

“We have already made several investments in Ethiopia. We like the 8% to 10% Annual GDP growth, the 100 million population (second to Nigeria) and the focus on value-added manufacturing for export. ”

— Zemedeneh Negatu, Global Chairman, Fairfax Africa Fund

We spoke to Global Chairman of Fairfax Africa Fund, Zemedeneh Negatu, on Africa's changing role in the global economy, the fund's expanding portfolio in East Africa, and Zemedeneh's words of advice for those looking to invest in African markets.   

You're featuring on our panel: Africa's Role in the Global Economy. How do you view Africa's part in developing the international economy?  

Zemedeneh Negatu, Global Chairman, Fairfax Africa Fund

Africa’s role in developing the global economy could be material if it focuses on three factors: first, there needs to be sustainable rapid growth by its largest economies including Nigeria, South Africa, Kenya and Ethiopia. Second, effective economic integration across the continent is imperative. Third, Africa has to migrate to value-added manufacturing including resource beneficiation.

Given this potential, it seems the Continent's economic role is often mischaracterised. What do you believe is often overlooked when considering Africa's global economic impact?  

What’s often overlooked about Africa’s global economic impact is the fact that Africa is enormously wealthy driven by two key elements: millions of talented young people who can provide a huge workforce to power the global economy and second, the abundant natural resources the continent has, without which the modern global economy can’t function. For instance, a significant portion of the raw materials required to run electric cars or mobile phones is sourced from Africa. Unfortunately, these resources are exported raw, under-valuing Africa’s importance to the global economy. But, I am certain Africa’s migration to industrialization in the next 25 years will result in an economy bigger than the United States GDP today, which will make Africa a respected global player.  

As a proud Ethiopian-American yourself, in your opinion, how is the African diaspora influencing the future of Africa in the global economy?  

The African diaspora is already playing a significant role influencing the future of Africa in the global economy. For instance, talented Africans returning to the continent, especially from the industrialized countries, bring highly developed knowledge and expertise in science, medicine, technology, entrepreneurship and corporate governance. Furthermore, the African diaspora sends tens of billions of dollars of remittances each year to Africa contributing to the continent’s economic growth.

“Talented Africans returning to the continent, especially from the industrialized countries, bring highly developed knowledge and expertise in science, medicine, technology, entrepreneurship and corporate governance.”

— Zemedeneh Negatu, Global Chairman, Fairfax Africa Fund

It was announced in January that Fairfax is to invest $4bn in an Ethiopian Oil Refinery. Does the fund have any other African projects on the horizon?   

Fairfax is currently evaluating several opportunities across Africa, especially in West and East Africa. For instance, we recently entered a US $70 million manufacturing deal together with a large Singapore based company and a local partner, to produce building materials for export and local consumption. We are also actively looking at agro-processing, FMCG (fast moving consumer goods) and renewable energy opportunities. Our key investment guiding principle is that it must be in sub-Saharan Africa, in a country with high growth potential. Furthermore, the investment has to fit into one of our five key priority sectors, with special preference for manufacturing, infrastructure and agro-processing - and must be exportable. That’s one of the reasons we have already made several investments in Ethiopia. We like the 8% to 10% Annual GDP growth, the 100 million population (second to Nigeria) and the focus on value-added manufacturing for export.

Exciting prospects! Investing in Africa is not, however, without its challenges - what would be your key piece of advice for global investors looking to invest in Africa?  

Think strategic not transactional. Plan for the long term. Invest in the community. Don’t try to quickly “flip assets”. Also, look at Africa as a work in progress with the “glass half-full” perspective. And, finally, don’t be discouraged by bumps along the way.

To hear more from Zemedeneh Negatu, join us at The Annual Debate 2018, where Zemedeneh will be speaking on our panel Africa's Role in the Global Economy.

From 'The Rest' to 'The West': 4G Capital tackles inclusive financing in Africa

• 4G Capital fintech solutions are accelerating financial inclusion in Africa

• US $26M worth of loans disbursed to date

• Customers financial literacy grows with adoption of the service

When the African Development Bank reported in 2013 that over 75% of people in Africa did not have access to an account at a formal financial institution, it brought the issue of inclusive financing to the fore. Whilst for many this may have appeared as a limitation – a barrier to the ease of doing business – for some big-thinkers, it was an opportunity.  

The same year, 4G Capital was founded in Nairobi by Wayne Hennessy-Barrett. Offering microfinance to small businesses, 4G worked with a vision to digitizing the informal economy, and connecting African enterprises to the world. Today, the company's financial services are expanding across sub-Saharan Africa, with $26M worth of loans awarded to date. 

What makes 4G Capital shine, however, is their mission to combine microfinance with both digitization and education. Alongside loans, customers receive financial education, and the stats testify to the success of this, with 94% of customers reporting increased financial literacy. Meanwhile, Hennessy-Barrett is also working to make 4G Capital smarter. Collecting data via SMS surveys, 4G Capital is reaching those excluded from formal finance – and from internet connectivity. This is not merely bringing the company insight, but when customers come to graduate to a formal financial institution, they can take their credit data with them. 

“There is a great gap in the market for affordable debt financing in local currencies, which places more risk on solid enterprises than would otherwise be the case in other markets. ”

— Wayne Hennessy-Barrett

We spoke to Wayne Hennessy-Barrett to find out more about 4G Capital's impact in Africa, his thoughts on inclusive financing – and, of course, who he's most excited to hear from at The Annual Debate.  

So you founded 4G Capital, a microinvestment company providing microfinance and financial education  - where have 4G Capital had the biggest impact to date?  

Wayne Hennessy-Barrett, Founder and CEO, 4G Capital

As one of Africa's few profitable fintechs, our greatest impact has been the transformation of wealth creation for the majority of our clients. By ensuring we only lend working capital to viable businesses, and rightsizing credit lines with affordability, we have seen a marked growth in client business size and personal economics in a significant proportion of our client base. We're now matching bottom line profit with top-line growth as we scale in earnest with partners. 

 An impressive feat - you also report a 94% increase in financial literacy amongst your customers. How important do you believe financial education has been to the success of 4G Capital?     

We think it is fundamental to delivering the skills to use credit to grow wealth, rather than to cover immediate living costs. 

In your opinion, what is the most significant issue hindering inclusive financing in Africa?    

The issues which hinder our clients are the same issues which hinder businesses across Africa - access to affordable capital. There is a great gap in the market for affordable debt financing in local currencies, which places more risk on solid enterprises than would otherwise be the case in other markets. 

For those who have gained access to finance via 4G Capital, 86% are achieving increased sales - what are 4G Capital hoping to achieve in the future?  

We are exponentially ambitious by design.  We want to digitize the informal sector across Africa, connecting the vast opportunities in the growing informal sector with global value chains.  We then want to see the best in class products and technologies migrate from African markets - 'The Rest' -  back to developed markets in 'The West', to help solve the same problems of social and financial exclusion which hold us back from creating the world we want for our childrens' children. 

Inspiring words! Speaking of which, who amongst our speakers at this year’s Annual Debate are you most looking forward to hearing from? 

Impossible question! This is a stellar group of thought leaders and experts, I'm going to learn a lot and I'm very honoured to support it. I'm most interested to see how representatives from the UK government will describe Britain's engagement strategy with business in Africa.  We live in a fast-moving world, and connecting capital with expertise and execution in exponentially growing markets in no longer a luxury for the few - it's a necessity for economic development everywhere. 

To hear more from Wayne Hennessy-Barrett, join us at The Annual Debate 2018, where Wayne will be speaking on our panel Inclusive Financing in Africa.  

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MEET THE REST OF THE TECH ENABLERS PANEL

Andreata Muforo

Chinedu Azodoh

Rob Withagen