It’s a question that had to be answered sooner or later, the silent question in most entrepreneurs’ minds. It’s a topic I have  discussed privately, but now it’s something I think should be explored publicly.
If you look at the tech capitals of the world – Silicon Valley, Seoul and Tel Aviv – you won’t find any globally renowned black technology entrepreneurs.
It concerns me that a black entrepreneur has not come up with a major breakthrough in technology and gained a personal net worth of over a billion dollars as a result. Bear in mind, I did not say millions as there are many around today who are worth that.
Money is not the defining criteria though. To get to the bottom of this question we need to look at innovation, an idea that took the world by storm like WhatsApp.
Being African is also not in question, the continent has entrepreneurs such as Mark Shuttleworth and Elon Musk who have delivered powerful tech innovations and have billions in their pocket to prove it.
In order to answer the question, we need to confront three issues, cronyism, racism and nepotism. Firstly, they exist; we can’t run away from them.
Nepotism is a global issue. Everyone supports who they know, even people of color. This means that the success of a previous generation cascades to the generation that follows. This continues any race’s probability of success.
Many believe that racism is preventing black Africans from rising to the top. This belief is wrong. Asians and Jews at one point suffered tremendous discrimination, but they succeeded despite that challenge. Today, those two ethnicities are leading the business world.
Another challenge faced by many tech companies started by black entrepreneurs is the moment they come up with an idea, they are immediately thinking of ways to monetize it. You have to make money because you have bills to pay and there is the pressure of friends and family members wanting to see the fruit of what you have been working on.
At the main goal of the most successful tech companies, like Google, Quora and LinkedIn, their main goal was to get  as many people to use their technology as possible. Once that was achieved, they started to figure out how to make money from them. WhatsApp and Quora are still trying to figure this out, but they have millions of users to work with.
Investors in the United States encourage that. You need to attract interest first, monetization will be figured out afterwards and together. The message is that they will give you money if you can show your users have an active interest. Unfortunately, this is not the case in all countries around the world.
I believe Africans are brilliant. We, however, need an ecosystem that can be supportive for all ethnicities on the continent, not just black people. Nairobi and Cape Town are beacons in Africa for the vibrant tech ecosystem they have enabled in their cities. These ecosystems were largely built by the entrepreneurs themselves.
There are two black entrepreneurs who started major technology companies that should be mentioned, David Steward from the United States and Mike Adenuga from Nigeria. Steward runs World Wide Technology, the largest black-owned company in America, with revenue of $7.4 billion in 2015. World Wide Technology is tech service based.
Adenuga, with a personal worth of $3.8 billion, runs telecommunication company Globacom, with over 30 million subscribers. It is not a global brand and it doesn’t have to be.
My point is Africans are created equally and have conquered almost every industry. Competing with the rest of the world should be a challenge, not a competition. Let’s collaborate, with each other and counterparts of all backgrounds, to advance this world technologically.

Where Is The Black Mark Zuckerberg?

It does not matter how amazing your business is, as long as customers don’t know about it, it is as good as a diamond buried deep under the earth.
Technology has led to radical changes in the market; traditional advertising is dying out, and the media companies’ revenue from this is declining. Yet, despite not investing much in advertising, the exposure of companies is at an all-time high.
Are we caught in a middle of a market evolution? Everyone is trying to predict what is going to happen. Reports by the likes of the World Economic Forum, McKinsey &amp; Company and PricewaterhouseCoopers are springing up everywhere. Some are correct, others are dismally wrong.
If you are an entrepreneur in Africa with a fervent drive to conquer a particular industry, whether or not you have a budget for advertising, you need to explore the most effective strategies to market yourself in a world where you can end up drowning amid the plethora of ads and messages in the media. It’s a mad show out there, all you have to do is take a walk along the street or browse the internet to realize this.
Let’s look at some of the effective ways to convert prospective customers to actual clients.
There is a model that many entrepreneurs don’t know about – the freemium model – which is one step below the paid for premium model. Freemium is where you offer your products and services for free and then make money on the other end. Facebook’s monetization strategy is selling advertising to other companies, on the back of the popularity of their service. Bear in mind that the high usage of their service is down to it being free.
Chinese ecommerce company, Alibaba, did the same thing to kill eBay when the American company tried to enter the Asian market half a decade ago. They invited eBay to follow their free model, knowing that the listed company’s shareholders would persecute its senior executives if it did so. Alibaba is now the king of the Asian ecommerce market, while eBay fizzled out.
You need to be creative to stretch a dollar in today’s economy, whether your company is big or small.
Referral is one of the most effective marketing tools for your business. It’s a form of trust transferred by another source you know and respect. Uber has used this method well. The taxi company offers free rides to their existing customers when they refer Uber. In this case, an incentive rewards existing customers for finding new customers.
There are products that go viral without monetary incentive. WhatsApp is the best example in this case. Existing customers were pushing the product themselves because they wanted to use WhatsApp to message everyone else in their phonebook. It helps that WhatsApp is cost effective as well.
Offering your product for potential customers to use over a trial period has been popular in recent years. Most anti-virus and software companies use this as a marketing strategy. It is not a new concept though. William, a young salesman in the 1930s, worked for a company that sold home appliances. He walked from door to door, allowing people to use particular products until he returned to collect them a week or so later. More often than not, when he returned, the majority of those people discovered that the items were useful and refused to give it back. They chose to pay him for the item instead. It led to him becoming the number one salesman in his company.
Some say print media advertising revenues are going down because many marketing campaigns are online. That cannot be the entire reason, only 9.8% of Africans are internet users.
Then internet is not the only answer to marketing these days. Many companies collaborate to leverage each other’s client base. Insurance, retail and healthcare based companies are good at this. Partner with a company that opens your business to hundreds, thousands, and even millions of clients; it could save you piles of money that would usually be spent on ineffective campaigns.

The Art Of The  War

In 1967, there was growing divergence between two parts of Nigeria. Biafra, a secessionist state in south eastern Nigeria, at the time represented the nationalist aspirations of the Igbo people, whose leadership felt they could no longer coexist with the federal government. The desire for a separate state led to up to 30,000 Igbos being killed and around a million refugees fleeing to their homeland in the east. Anambra, the eighth most populated state of Nigeria, provided the base for dangerous relief flights loaded with food and supplies for the war-torn Biafran population. The area was also home to Cosmas Maduka, who was only six years old at the height of the civil war.
“We had a bunker outside our house which we ran into during times where the military opened fire and dropped bombs with their fighter jets. We did not know whether we were going to survive to see the following day,”
says Maduka.
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Once, while on his way to the market, soldiers opened fire, killing a large number of civilians. Maduka narrowly escaped. In a bid to protect her children, Maduka’s mother sent him away to live with his grandparents before he later embarked on the journey that would see him become one of the most successful entrepreneurs in Nigeria.
Maduka is the President and Chairman of Coscharis Group, franchise holders of over eight automobile brands and one of the largest distributors of spare car parts in Nigeria. The company also has interests in real estate, banking, technology, medical equipment, petrochemicals, elevators and agriculture.
Like his early childhood, getting his business to this point has been tough. While talking to FORBES AFRICA in his gigantic dealership, which houses over 300 luxury car brands, he is quick to credit someone else for
his success.
“My mother was the lady who inspired me to greatness. At a young age in my life, she looked at me and told me I am going to be successful. She said people will always like me and people will struggle to say no to me,” says Maduka.
It’s easy to see why. He is composed as he sports his trademark Jesus broche. He has a quiet confidence about him without being arrogant. His mother’s “indoctrination” would later be the impetus he needed to turn N200 ($1) into a $500-million conglomerate.
On average the company sells more than 400 cars per month with prices around N150 million ($752,787) for the top end of its luxury fleet, which includes Rolls Royce, BMW, Jaguar, Range Rover and Ford. This year, the company partnered with Ford to build one of the largest manufacturing plants on the continent for its pickup trucks.
Coscharis’ medical supplies business represents GE Healthcare, Philips and Siemens in Nigeria. Coscharis also holds the number two position in the ICT market through its own brand, Coscharis Technologies Limited, and their pool of partners which includes HP, Microsoft and Lenovo. Coscharis Technologies provides hardware and software applications to organizations.
Maduka’s success is all the more remarkable when you consider he lost his father when he was a toddler.
“The best I knew of my father was the day I saw a man lying lifelessly in a suit&#8230; It was like a festival, people were exceptionally kind to me that day and whatever I asked for, I got,” he says.
The four-year-old Maduka didn’t know it was his father’s funeral. The celebrations ceased immediately after this day. Maduka started street hawking to provide for his family. Every morning at 5AM, Maduka would wake up to sell bean cakes with his older brother, Pius, to generate money for the family. True to his mother’s prophecies, Maduka was a better salesman than his brother. As a result, his mother, who could no longer afford the tuition fees for both brothers, took Maduka out of school at the age of six.
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At the age of seven and no longer attending school, Maduka was sent to live with his uncle and serve as an apprentice selling motorcycle parts. It was not a conventional apprenticeship. Firstly, Maduka worked for seven years without pay. Secondly, the shop floor that Maduka traded on during the day would be transformed into his bedroom at night. He would wake up early in the morning to have his shower on the street before customers arrived and then proceed to manage the shop by himself with occasional supervision from his uncle.
In most countries, these conditions would constitute some form of breach of child labor laws. Maduka has a different take on the experience.
“I believe this was the best university any young man can go to because it was a system where there was no contractual agreement. If you did not behave yourself, you were sent back home to the village, but if you performed, your master would give you start-up capital for your own business at the end of your apprenticeship,” he says.
By the fifth year of his apprenticeship at the age of 13, Maduka had already proven that he had what it took to run a business on his own and was consequently placed in a new branch to manage. In Nigeria, as with many African countries, entrepreneurs are trained by trade schools, craft centers and vocational institutes. Proprietors in the small-scale industries also offer training programs based on an apprenticeship system. Whereas the government-established institutions are formal, apprenticeship training in the private sector is often informal. In lieu of this, there is an ongoing debate as to which system yields the best results. Maduka favors apprenticeship.
“I believe apprenticeship is the best university to go to. If you give a formally educated person N1 million and an apprentice N100, 000, I believe in five years, the apprentice will be able to catch up to the university student and overtake him,” he says.
Maduka learned everything about the automotive components industry outside the classroom. He learned about the internal combustion of an engine, carburettors and centrifugal regulators. He also discovered how to provide the best service to clients and where to go to get the best deals as a reseller.
He understood the power of building a trustworthy reputation with your buyers. He knew about cost price and profit margins and ensured the shop was always stocked with the products the customers often needed. That learning process ended when, due to his newly found Christian faith, Maduka closed his uncle’s store so he could fast for three days. He was immediately fired and, to Maduka’s surprise, his severance package after seven years of hard work was less than a mere $400.
“I looked at my uncle in the face and said to him I deserve something better than this, five years from now, you will regret making this decision,” says Maduka.
Adversity is a constant companion for entrepreneurs, but the successful ones learn to push through tough times. Maduka outlined three key targets for himself after being dismissed by his uncle.
“I wanted to get married before I turned 20, have children by 22 and become a millionaire by 24,” he says.
Maduka immediately put his plan into action. He formed a new company, with his brother, called Maduka Brothers, continuing to trade in automobile parts. The pair sourced parts from Lagos and resold them in eastern Nigeria. In just under a year, the brothers went their separate ways due to differing opinions on how the business’ money should be spent. After the split, the siblings became competitors with automotive shops across the road from each other. However, the apprenticeship experience Maduka had gave him an advantage over his brother.
“In business, knowing where to buy is just as important as selling. You need to buy well to sell well and I had a good relationship with all the major wholesalers,” says Maduka.
He used his relationship with large wholesalers to get his supplies at a competitive rate. Within a week, Maduka was selling enough components to get himself a three-bedroom apartment – by the age of 17. With the apartment secured, Maduka set the groundwork to achieve his first goal. At the age of 18, he met a woman who would become integral to the Coscharis empire.
“Her name was Charity and we met in church. I immediately knew she was the one. I asked for her hand in marriage and, after thinking about it for some time, she accepted.”
Maduka got married at the age of 19 and made his first million, as predicted, by the age of 24. The name of his company, Coscharis, was born by combining his name, Cosmas, and the name of the second woman he credits with all his success, Charity. Today, the group has more than 26 branches nationwide, with a presence in Ghana, Gabon and Côte d’Ivoire.
The automobile business of Coscharis Group started in 1983 when the company was incorporated with the business of importation and distribution of automotive parts and accessories of Japanese vehicles. The decision to incorporate the car business provided the breakthrough Coscharis Group needed. At a time where many businesses were choosing to remain sole proprietorships to avoid the bureaucracy and complex framework of a limited company, Maduka decided to break convention. That decision paid off.
“In 1983, the federal government of Nigeria decided to give import licenses only to motor companies and, because I had incorporated Coscharis, they placed me among multinationals like Leventis, even though it was only me and my wife,” says Maduka.
The import licenses granted to Coscharis was crucial. The Nigerian economy back then was dependent on external sources. By 1980, imports had reached a level equivalent to a quarter of the GDP. The federal government deficits had increased from $1.5 million in 1970 to $17.6 million in 1978. Nigeria’s total outstanding debt had reached the $2 billion mark by 1980. These dire economic conditions presented an opportunity for Maduka in a climate where other businesses were closing.
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“It was a seller’s market then because there was scarcity of products. In every difficult situation, an entrepreneur knows that his destiny is not in the hands of his state but in his own hands, he creates his own opportunities,” he says.
Maduka was making margins as high as 200% during this time. The import license gave him protection against the military-run government’s scrutiny and he was able to capitalize on this to grow his business. Maduka had a clear vision for his company from the onset. In the early seventies, the Nigerian motor industry had a lot of major players. Coscharis had to find a way to differentiate itself.
“Leventis was one of the foremost automobile sellers, followed by Mandilas, who were known for their excellent service. We also had some Peugeot dealers&#8230; By the eighties, almost all these companies collapsed and cars were being sold under trees with no service centers.”
Coscharis was responsible for revolutionizing the automobile industry in Nigeria by building showrooms fully equipped with in-house service centers. A second factor for Coscharis was its philosophy towards its employees. Being an entrepreneur at heart, Maduka only hired individuals with strong business acumen to ensure that the culture of innovation and competitiveness continued with the group. Maduka credits this strategy for the success of the group. The company currently has more than N50 billion ($250 million) in shareholder funds, generated in just under 40 years.
Overcoming adversity has always been one of Maduka’s strengths. Four years ago, he was faced with a scandal that threatened to scupper everything he had worked so hard for. In what he considers his worst day in business, Maduka was left with a devastating financial burden of N22.4 billion ($113 million) when he secured a loan for a business associate. At the time, Maduka was on the board, and owned a 25% equity stake, of Access Bank. He was approached by Ifeanyi Uba, the CEO of Capital Oil, for a loan to import petroleum premium spirit. After sympathizing with Ifeanyi’s inability to raise capital to save his business, Maduka took a calculated risk.
“I have never defaulted on any loans. Every bank works with Coscharis at an open credit and we are one of the few companies in Nigeria who have that relationship due to our strong financial position,” says Maduka.
He guaranteed the loan of $278 million for Ifeanyi to secure his goods, which was never repaid. In what was a huge scandal at the time, Coscharis had to repay the debt.
“I don’t think even Bill Gates can walk away from $150 million without it having an effect on him,” says Maduka.
Fortunately, the investments the organization had already made were enough to absorb the heavy shock.
Today, there is a new strategy in place. Maduka has set his organization the target of turning over a billion dollars in the next five years. Ever the entrepreneur, he has identified key sectors to help him achieve this goal. One of these is agriculture.
“Nigeria spent over $3 billion to import rice; almost 90 percent of Nigerians eat rice and we see an opportunity to create a billion-dollar business in rice over the next three years,” he says.
The current government supports Maduka’s decision and has made attempts to curb the importation of rice by raising the duty of the crop to 100%. Coscharis has acquired more than 3,000 hectares of land in Anambra State and is due to harvest the first batch.
These days, life is very different for Maduka. He has six children, two of whom are involved in the Coscharis Group. His family might not exist, however, if it was up to Charity’s uncle.
“When I told her family about my intentions to marry Charity, her uncle was so annoyed he got his gun and shot at me,” says Maduka. Luckily, he missed.
He is a firm believer in each one of his children receiving a Nigerian education before progressing to the classrooms of the United States. This way none of the children will forget their roots.
Maduka is passionate about the potential in Africa’s largest economy.
“Ten years ago, the Dangote you see today was not the same back then. The government showed goodwill and supported Dangote and today Nigeria will be a net exporter of cement instead of being an importer. Vodacom came into Nigeria and left, and now they are trying hard to return to the market without any success. A subsidiary company of a South African independent company, MTN Nigeria, has more turnover than its parent company. The potential in the Nigerian market is untapped. Saudi Arabia is selling over 150,000 units of Ford with a small population.”
“If we unleash the potential of this industry, and the government handles corruption, the true potential of this market will be unmatched anywhere in the world.”
If Nigeria does reach this potential, Maduka will be on hand to make the most out of it.

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The $500-Million Survivor

The journey to a million dollars can start in Ikot-Ekpene, a town in southern Nigeria famous for its palm oil, kernels, yams, cassava, taro, corn and raffia. As a child, Mark Essien watched his father, a graduate of the social sciences with no vocational training, build makeshift machines for communal use, such as excavators to pump sand out of the river. A proclivity to build was sown in Essien. It bore fruit decades later and thousands of miles away, in Germany, where he was attending university.
Essien got a job as a night watchman. He had to closely observe the bodily movements of a paralyzed man, which could possibly be fatal. During these long nights, Essien taught himself computer programing. He soon developed a file-sharing software that was bought by Bertelsmann Media, a German multinational mass media corporation. Essien was also hired by the company. Soon, his skills were in high demand. He made a living, and financed his university studies, by selling software to Orange SA (then known as France Telecom), Walt Disney and the United States Armed Forces. Soon, he got bored.
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“I wanted to get out of buying and selling software products and move into start-ups. Start-ups are a different beast,” Essien says placidly while sitting in his office, a recently remodeled colonial building in Yaba, a suburb in Lagos.
This time, in between wrapping up his Bachelor’s degree and waiting to begin his Masters’, Essien, in collaboration with friends, launched a start-up based on iPhone apps. This was around the time when the iPhone was first introduced to the world. The business performed fairly well, but Essien sought a new challenge and handed the reins of the start-up to his co-founders.
He was looking for a bigger challenge – one that would allow him to play a role in the technology space on the continent. In January 2012, Hotels.ng became this challenge. The online business was formed as the infant tech industry was taking off in Nigeria, and in Africa. In a few years, a content streaming service, a flight booking platform, online malls, car dealerships, real estate directories and more have sprung up in Nigeria. Hotels.ng joined their ranks, providing online solutions for people in need of temporary accommodation in Nigeria, from Ikot-Ekpene in the south, to Sabon Gari in the north.
Hotels.ng was started with financial contributions from family and friends, as well as Essien’s personal money. Starting the business was easy, making it a success would be more difficult.
“We were very lucky that we had some capital available and we were able to raise it pretty quickly. We were able to raise $75,000 after three months of operations,” says Essien.
Usually, start-ups are not this fortunate. It is believed Essien had an unnamed investor when he launched. However, in the tech ecosystem, local investors are still hard to find. Essien thinks this is because they are not seeing other investors make massive returns. He also doesn’t think much of those running start-ups in the country today.
“Investors don’t invest in ideas, especially in Nigeria when there’s so much execution risk. Every start-up has been done somewhere else successfully so the idea is good but can the person build it? I don’t think enough smart and resourceful people are in the start-up space.”
It would seem Essien doesn’t belong in this category. A few months after launching, he was made an offer by Jason Njoku, founder of successful content streaming service, iROKOtv, and start-up incubator, SPARK. He turned it down, stating he wouldn’t need investment for the next six to twelve months as he had enough from his first seed round.
“There’s a philosophy I have that every start-up should follow. You must be able to build a business with what you have. If you are dependent, your business will be vulnerable. I’d rather take no money than take bad money,” says Essien.
Hotels.ng managed to grow independently and, in 2013, Essien decided to sell 35% to SPARK for $225,000. This year, Hotels.ng raised $1.2 million from the Omidyar Network, the investment vehicle of eBay founder Pierre Omidyar, and EchoVC Pan-Africa Fund, a seed-stage technology fund.
The investment was a result of a six-month search, involving 60 to 70 investors who were interested in Africa. Essien insists, however, that the investment is not a magic wand and while some problems will disappear, bigger ones will take their place.
“Scaling a company up is extremely difficult. I have gone from me and one guy, to me and 49 people. You have to build structures, management. We need to understand what it means to have regional offices across Africa. We are going to start in Ghana. The stage we are in the market is still early. We have a bit of leeway to be slow on things. When you are faster than the market, it’s the quickest way to kill your business.”
Essien makes an interesting comparison. Before YouTube, there had been a number of video file-sharing platforms that were just as innovative. However, there was no global internet penetration to support their success. There were not enough people online, or even aware, to enjoy these sites. YouTube came at just the right time. Essien believes Hotels.ng must perfect such impeccable timing.
Although Essien’s journey, and that of his start-up, has only just begun, he knows where he is going.

Millions  That Came To The Entrepreneur Who Waited

The millennials, also known as Generation Y, are the early adaptors of technology and a demographic companies simply cannot afford to ignore. In Africa’s booming wedding industry, estimated to be worth $3.35 billion, millennial couples – understandably – comprise more than 83% of customers.
Which means that what worked for bridal marketing 10 years ago is no longer relevant, given that couples today have completely different – and often stratospheric – expectations. To differentiate requires finesse.
And that’s what Tamara Jonah-Goka, CEO of Lionheart Events, excels at.
At her office, tucked away in a cul-de-sac off the road leading to Accra’s biggest exhibition center, Jonah-Goka is hard at work planning yet another Gen Y wedding. Lionheart, set up six years ago, is Ghana’s leading event management company.
Born to successful entrepreneurial parents, Jonah-Goka has business acumen encrypted in her genes.
She is the daughter of Sam Jonah, former chief executive of Ashanti Goldfields in South Africa and one of Africa’s wealthiest men.
“I think because I have a successful dad, it drives me a lot more. It is more of a weight on your shoulders and I know I cannot fail,” she says.
Jonah-Goka grew up watching her mother organize social functions and events at home, which led to her own love for events planning. After high school, she studied sociology in Kingston University in the United Kingdom. She took a year off after graduation to figure things out.
She wanted to do something creative, but wasn’t sure what.
Her brother suggested she take an online psychometric test to see which career would be best suited for the creative person in her. Over two hours and a hundred questions later, Jonah-Goka had her moment of truth. It turned out she had a strong affinity for people and planning. Armed with this knowledge, she decided to invest in a Master’s program with special focus on hospitality, tourism and events. She soon relocated to South Africa to work for a start-up wedding planning company, where she worked on a number of high-profile weddings, most notably that of Nelson Mandela’s granddaughter.
“I knew South Africa was always going to be temporary, Ghana was always home and the plan was always to relocate,” says Jonah-Goka.
On her return to the thriving cosmopolitan city of Accra, she quickly got to work, attending events.
“One thing I noticed was everything seemed very generic and I felt like there wasn’t a lot of design to weddings in Ghana.”
She began by paying a company to carry out market research to identify competitors, trends and insights into the events industry in Ghana. This was the first step at differentiation.
“My vision was always to create events that spoke about the personality of who my clients were instead of me.”
Her customers had to be 100% satisfied. Today, the company has hosted over 300 major events including weddings, corporate events and private functions, providing turnkey solutions for any budget. Every Lionheart event also comes with its own signature.
“I remember we flew in an ice sculpture from South Africa at no extra cost to the client because he wanted something he had never seen before and I felt that would be a nice touch,” says Jonah-Goka.
Going above and beyond for her clients has earned her a reputation for delivering quality, which does not necessarily translate to expensive; she works to all budgets.
But Jonah-Goka’s journey has not been without challenges. Tragedy struck when her brother, who influenced and supported her career choice, passed away.
On the work front, she was faced with a paucity of skilled labor. It was tough looking for people who bought into her vision. Consequently, she was heavily dependent on vendors. Chairs, flowers, décor…everything had to be outsourced.
“I knew I had to control my entire production line in order to deliver the quality and standard I wanted to see.” Eighty per cent of Jonah-Goka’s customers are repeat customers.
“The challenge with repeat customers is they know the value you bring and there is always a new pressure to wow them again and deliver something better than what you did before.”
Her’s is not a normal nine to five job. Like her businessman father, Jonah-Goka is up at 5AM every day. With her work, she hopes to create a sustainable hospitality industry in Ghana focused on imparting training to people passionate about the events sector, thereby creating jobs. Jonah-Goka is leading the pack of young entrepreneurs in Ghana, growing rapidly, just like their country.

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The Online Test That Made A Party Queen

Have you ever been a victim of fraud or identity theft, where some of your personal documents were stolen and the data used fraudulently? Today, with online shopping and social media being a way of life, you cannot afford to be complacent about protecting your financial information. In today’s ‘virtual’ world, we are much more vulnerable than ever and must be more vigilant in safeguarding our finances. Here are some tips to minimize the risk or damage of this happening to you.
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Are your sensitive documents kept securely,
Where are your certificates and other important documents? Are they lying around in unlocked drawers or are they locked away securely in a fireproof safe? Apart from securing the physical documents, scan and secure them electronically.
It is not enough to just casually discard old financial statements; they can become prime target for thieves. Invest in a paper shredder; a personal one for home use is not very expensive and with this you can effectively destroy documents rather than simply tearing them up.
Secure your devices
Are your smartphone, laptop or other devices password protected? If your password or PIN is compromised, this could lead to devastating losses should someone gain access to your financial information. Do not share your passwords or PINs with anyone. If you think you might forget them and absolutely need to write them down, then store them securely and change them periodically using different passwords for different accounts or devices. Set strong passwords; be creative with your choice and avoid easy-to-guess passwords such as birthdays and names of family members.
In addition, secure your devices with a firewall and security software packages that have anti-virus and anti-spam features. If you are technologically challenged, get an IT specialist or a tech savvy friend that you trust to help you download and install this.
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What’s in your wallet or handbag? Sensitive documents should be kept securely in a bank deposit or a home safe, particularly those with your name and address on them. Make a photocopy of your current cards, driver’s license, and any important documents; these copies will come in handy if you need to cancel quickly or need to order replacements. Have your bank emergency numbers handy so that you can make those calls if you need to.
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Beware of scams
Your bank and other legitimate companies will never request for sensitive information such as bank details, passwords and PINs by telephone or email; these are usually fraudsters attempting to defraud you. Contact your bank directly and report such incidents.
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Do you use public computers?
Avoid using public computers for sensitive transactions as your information could be compromised. If you do use a public computer, be sure to clear your history before you log out completely, otherwise other users can intercept your information. Free wireless internet hotspots are often not at all secure. Use secure websites for your online shopping. The address will usually start with ‘https’ and there should be a key or closed padlock in the status bar. Shop only with trusted retailers.
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What are you sharing on social media?
Do you share personal information on social media, such as your address or telephone number?  It seems so natural to put seemingly innocent information about yourself and your family out there but it makes it possible for fraudsters to authenticate your identity. Geo-tagged photos inform people of exactly where you are; this could expose you and your family to crime.
Even if you put all these measures in place, there is no guarantee that your financial information will be completely secure. However, by protecting yourself, you limit access to sensitive information and protect your personal finances from fraud.
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For more personal finance tips, follow Money Matters With Nimi on Twitter: @MMWITHNIMI and Facebook: MoneyMattersWithNimi

IS YOUR INFORMATION SECURE?

Many educated Zimbabweans are scattered around the world in search of greener pastures. Walk by factories in Bulawayo, a city once known as &#8216;KoNtuthu ziyathunqa&#8217; (the place that exudes smoke), you will see deserted sites. According to Godfrey Kanyenze, an economist, 4,610 companies closed down in Zimbabwe between 2011 and 2014, and 55,000 jobs were lost.
But, according to the Zimbabwean government, look closer and you will see investment opportunities.
At the Zimbabwe Trade and Investment Forum at the Hyatt Regency in Johannesburg, in July, ministers campaigned for foreign direct investment (FDI), which they believe is on its way.
“Zimbabwe urgently needs a significant amount of FDI to create employment, enhance technology, improve productivity, add value and beneficiate raw materials,” says Zimbabwe’s Minister of Industry and Commerce, Michael Bimha.
According to Bimha, Zimbabwe will review its legal framework to attract foreign investment. Government has a Bilateral Investment Promotion Protection Agreement (BIPA) which protects future investors from expropriation. He cites power generation, water and sewerage, transport, dam construction and ICT as areas of need.
One good sign is that huge African investor, PPC Cement, is ploughing in money.
“PPC Zimbabwe is a key player in all the big projects underway, and we are working hard to be involved in those still at the planning stage,” says Njombo Lekula, Managing Director of PPC Zimbabwe.
He says the country’s future growth will be centered on Harare and Northern Zimbabwe through housing driven by urbanization.
“It’s an expression of our confidence that the economy is on the up, and also in the growing amount of intra-regional trade, with South Africa, Mozambique, Malawi and Zambia particularly. Our total investment is $200 million in the country over the coming years,” he says.
On the flip side, the Zimbabwean government will soon be exporting skilled labor as the ruling party, Zanu-PF, lags on its 2013 election promise to create 2.2 million jobs in five years, with its economic blueprint; the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim Asset).
Zimbabwe has signed job agreements with South Sudan, Namibia, Angola and Botswana. The government will be paid for recruiting. Zimbabwe’s Higher and Tertiary Education, Science and Technology Development Minister, Godfrey Gandawa, says a database of graduates is being set up.
“We are coming up with a policy as a ministry to help our skilled manpower to get jobs because there are countries with vacancies in various fields, but our people do not have access to those vacancies out there,” Gandawa told the state-controlled Herald.
Obert Gutu, the opposition MDC-T spokesperson, says the policy was an open admission that Zim Asset has failed.
“When a country begins to actively encourage its qualified personnel to get jobs in other countries, you can then appreciate that the wheels are surely coming off. Instead of creating jobs under the much talked about Zim Asset policy framework, the Zanu-PF regime has actually become an employment agent; eagerly recruiting young and highly qualified Zimbabweans to go and work in other countries. Under normal circumstances, this government would simply resign. They have totally failed the people of Zimbabwe,” says Gutu.
Maxwell Saungweme, an independent development economist, says it is unfortunate that Zimbabweans educated with state coffers will be working for the coffers of another state.
“Policies on education and human capital development should be demand driven and not just to supply labor and investing in education and skills you don&#8217;t need,” he says.
Political analyst, Rashweat Mukundu, claims this is a policy of desperation.
“If Zimbabweans have to move, it must be voluntary, but right now labor or economic migration is a desperate move by many who see no hope in Zimbabwe.”
The last word at the investment forum comes from a South African rail entrepreneur, Thabo Molamu.
“Investors should strongly consider investing in Zimbabwe, regardless of a wrongfully portrayed political situation in Zimbabwe, especially by some sections of the media,” he says.
“The policies put in place by the government of Zimbabwe, like the indigenization policy, will be understood by the targeted beneficiaries very late. The truth is, people want answers now; they want poverty eradicated now, and they don&#8217;t understand why redressing the past is central to the plan of African leaders. They misinterpret this to be meaning being self-centred when in reality it means putting Africa and the people of Africa first.”
So, where there is a will, there is always an investor and entrepreneur.

Money In, Skills Out

Its 4PM on a Friday in Johannesburg and the traffic is building up. All of Johannesburg is going home, but the night is young for Cindy Mashao, a Uber driver. She picks us up from our Sandton offices, and lets us ride with her.
Uber is a technology company connecting riders with drivers through a smartphone app. Mashao owns a hair salon in Alexandra, a black township in Gauteng, but now, as part of the Uber network, she has, like her counterparts worldwide, the opportunity to be the CEO of her own taxi.
Mashao was one of Uber’s first female drivers in South Africa when she joined the network late last year. In just under two years of its operation in South Africa, 4% of Uber’s drivers are women. In the United States (US), the corresponding number is 14%.
<img loading="lazy" decoding="async" class="size-medium wp-image-30155 alignleft" src="http://www.forbesafrica.com/app/uploads/2017/05/Uber-driver-095-200x300.jpg" alt="" width="200" height="300" srcset="https://cms.forbesafrica.com/wp-content/uploads/2017/05/Uber-driver-095-200x300.jpg 200w, https://cms.forbesafrica.com/wp-content/uploads/2017/05/Uber-driver-095-300x451.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2017/05/Uber-driver-095-600x903.jpg 600w, https://cms.forbesafrica.com/wp-content/uploads/2017/05/Uber-driver-095-681x1024.jpg 681w, https://cms.forbesafrica.com/wp-content/uploads/2017/05/Uber-driver-095.jpg 680w" sizes="auto, (max-width: 200px) 100vw, 200px" />
“Given that the US as a country is significantly bigger than South Africa and Uber has been in the US for five years, South Africa being at this level is really exceptional and the growth possibilities are very exciting,” says Samantha Allenberg, Uber’s spokesperson.
Mashao expertly navigates the back roads to get out of grid-locked Sandton at this peak hour.
“I stay far away from Sandton [as far as possible] when I’m working,” she says. With most businesses operating in this affluent part of Johannesburg, traffic is always a nightmare.
Mashao is a live wire and brimming with stories. As we drive to her usual spot, which is a petrol-station in Morningside, she tells us that drunk customers are her favorite because they make driving exciting and the ride eventful. There is never a dull moment. Her passengers in the morning are usually stressed office-goers, so there is little room for friendly banter.
Its 4.30PM and we start in Morningside at the end of the ever-busy Rivonia road where she waits for ride-requests.
“Morningside is like home for me. It’s where I started,” she says as she greets other drivers, mostly male.
Listening to the radio on the commute all day ensures she’s clued in on the latest music and current affairs.
It helps her find common ground with her passengers. She learns a lot from them too.
“I got a recipe for beer from one,” she tells us excitedly.
Her phone has been unusually silent and we decide to drive around the area. She shows us her Uber app, there are four other cars in the area.
“You’ve got to be sneaky and clever to get requests,” she says cheekily.
An alert goes off on her phone and we’re off to pick up her first customer, in Bryanston.
Our first rider tells us of his amusing Uber mishaps as we drive to the upmarket Sandton City mall. He had once drunkenly requested an Uber van, which seats six and is used for larger groups, only to be greeted by a very confused driver looking for the rest of the passengers. We drop him off and Mashao jokingly tells him not to make the same mistake tonight.
We head to Mashao’s usual Friday night spot at The Waterford Shopping Centre in Fourways. As we pull into the center, a request goes off on her phone and we’re on the move again.
It’s 6PM and we pick up a teacher on his way to a school play. He’s in high spirits after a long week. “It’s Friday night so I thought why not? Uber always has your back,” he says.
There’s a power cut and the area is dark but Mashao expertly maneuvers through the traffic.
<img loading="lazy" decoding="async" class="size-medium wp-image-30157 alignleft" src="http://www.forbesafrica.com/app/uploads/2017/05/Uber-driver-015-300x200.jpg" alt="" width="300" height="200" srcset="https://cms.forbesafrica.com/wp-content/uploads/2017/05/Uber-driver-015-300x200.jpg 300w, https://cms.forbesafrica.com/wp-content/uploads/2017/05/Uber-driver-015-600x399.jpg 600w, https://cms.forbesafrica.com/wp-content/uploads/2017/05/Uber-driver-015-768x511.jpg 768w, https://cms.forbesafrica.com/wp-content/uploads/2017/05/Uber-driver-015.jpg 1024w" sizes="auto, (max-width: 300px) 100vw, 300px" />
The calm and collected Mashao says her scariest moment was picking up a passenger from a wedding at The Cradle of Humankind, a World Heritage Site located 50 kilometers northwest of Johannesburg. It was 2AM and the road to the venue was a dirt track.
The Uber app had alerted the passengers about the driver’s profile. Seeing that they had a female driver arriving to pick them up, they had a bouquet of flowers waiting for Mashao.
“It made it worth it,” she says.
We stop at a garage in Honeydew as she reapplies her lipstick land freshens up in the restroom. It’s the only break she has had. We’re in a quiet area and there are no alerts on her phone.
Its 7PM and we head to Melville, a bustling area cluttered with bars and restaurants.
She makes a sudden U-turn as she receives a request. We fetch two 12-year-olds on their first date. We get off as they get in.
They hold hands in the back seat and steal coy glances at each other. We agree to meet Mashao in Melville after she drops them off.
“Fridays are usually busy, you guys must be bad luck,” she says with a laugh. It has been quiet but every moment is an adventure for Mashao.
The night is still young, filled with umpteen possibilities.

Uber-driver-080

Friday Evening With A Female Cab Driver

It’s a mixed bag of black investors; a former civil servant, an engineer, an IT specialist and a car leaser. They are united in taking the risk of bringing the craze of pay-as-you-drive car rentals to Africa. Their company, Locomute Shared Mobility, has sunk $3.4 million into it.
In June, Locomute will have 50 vehicles running on the road in Johannesburg; in three months, Cape Town and Durban will follow.
Sibusiso Xaba, the chairman, is guiding a group of young, black entrepreneurs in their thirties. For more than a decade, Xaba was a civil servant and director general in the Department of Arts and Culture. In January, in his forties, he took the leap as an entrepreneur.
“For every car that is shared, 15 people won’t necessarily have to buy a car. The convenience our service gives to the customers makes it outstanding compared to our competitors. It gets rid of debt capital, no e-tolls, no maintenance costs, you pay as you drive,” says Xaba.
In the competitive world of car rental, Kuthula Mkhize, the general manager, says it’s mainly for business types and visitors.
“Our target market is the executive person who flies into OR Tambo International from Durban and uses the car while in Johannesburg for the meeting and comes back to airport,” says Mkhize, who worked in the car rental business for eight years.
Technology is key. Before you can use Locomute cars you register on the internet or using a cell phone application for a few dollars.
“Subscribed members will reserve a car online or via the Locomute application. It’s a 24/7 access to a pool of vehicles located within designated zones called Locoparks. You only pay for the time you used the vehicle. We are responsible for the fuel, insurance and you leave the car where you desire,” says Xaba.
“This is an in-city service. You are not allowed to take the car in Johannesburg to Bloemfontein. We have technology to monitor our cars and we will immediately know what happens to each and every car in our fleet. If a car is stolen, we will be able to track it in no time,” says Mkhize.
“Before Gautrain was introduced, people drove cars to the airport, not because they wanted to but because they had no choice. Gautrain brought the service that was needed and today it is fully subscribed. So, if you give that person an option to drive our car from an office and leave it in a parking, he doesn’t have to worry about anything else,” says Xaba.
Martin Lydall, chief commercial officer for Imperial Car Rental, one of the biggest car rental companies in South Africa, says competition is good. In South Africa alone there are 60,000 rental vehicles in a business worth around $380 million, he says.
“This is probably the most competitive business in the world and South Africa is among the leading countries. We are business people and competition makes business effective. We are not concerned about the new companies. We have been competing with the small and big companies. It helps to evaluate your competitors and see where you need to improve in your own business,” says Lydall.
Derek Watts, FORBES AFRICA’s motoring correspondent, says there’s space for new players.
“We get used to the way of operations but if they establish a good name people will use their service. The transport system in South Africa changes by the day. It would be interesting to see, as long as you free people from insurance which this company is promising, then people will use the service,” says Watts.
Xaba hopes so.

Driving All The Way  To The Bank

Kharkov, the second largest city in Ukraine, is the unlikely location where Oke Okaro was baptised in the world of business during the Soviet era. In 1990, Okaro left Nigeria, as a teenager, on a scholarship to study electrical engineering at the University of Kharkov. Since then, he has had a rollercoaster career that has seen him grow from a trader in consumer products, such as Sony’s Walkman and Nike high-top sneakers, to the C-Suite of global finance and media technology corporations.
Along the way, he branched out as an angel investor and technology entrepreneur. Today, Okaro is a hands-on investor in several fast growing start-ups in Nigeria, including Gloo.ng, an online retailer of household goods, and ACE (Africa Courier Express), a technology-enabled logistics company.
Okaro’s journey began when he decided to abandon his academic scholarship to study computer science in Britain.
“When I left Kharkov, I was 16 and only had $200 in my pocket. I moved to London with the understanding that I had taken the decision on my own account and as a result, I was fully responsible for personally supporting every aspect of my life; I had to make it work on my own and failure was not an option. I didn’t have anyone in London and upon arriving roughed it out day to day, figuring out where I’d sleep and find the next meal,” he says.
“I did pretty much every odd job you can think of. I worked as a bricklayer, cleaner, security guard, bouncer, nurses’ assistant, fast food and electronics sales person; pretty much everything. However, I never for one second lost focus of the prize which was to get my degree in computer science.”
After graduating in 1996 and working in Britain for a year, as a software engineer, Okaro, ignoring advice from friends, quit his job and moved to New York in pursuit of the American dream.
Once again, he didn’t know anyone in the city and camped out in the student hostel at Columbia University. Within a few weeks, he landed a job at a major financial securities firm, Greenwich Capital Markets, where he worked as a software engineer designing and building fixed income derivative trading systems. After three successful years, Okaro once again decided it was time for a new challenge and set his sights on an MBA. He applied and was accepted to the University of Pennsylvania’s Wharton School of Business.
In the summer of 2001, while on the program, Okaro took up an internship with Qualcomm and landed in the mobile sector just as the telcos in the United States (US) were starting to invest in their data networks.
“At Qualcomm I got the privilege of working on one of the first mobile apps in the US, and also the rollout of the first mobile application development and distribution platform, BREW, (Binary Runtime for Wireless). This was 2001, six years before the iPhone and seven years before the App Store. Back then, Japan was the market leader and the US market was in its infancy. People in the US hadn’t even got into texting much. Despite this, from seeing what was starting to happen in Japan and from my experience working hand in hand with the leading US telcos at the time, Verizon and Sprint, I knew mobile was going to be huge in the US and much bigger than in Japan. This was when I knew I was going to be the mobile guy.”
MBA degree in hand, Okaro went on to explore turnaround venture opportunities. However, this proved unsuccessful and he counted his losses and moved on. He then joined a global sport media company, where he started its mobile business and led the design, product and engineering teams. Okaro created a portfolio of pioneering and award-winning products that set the standard in the mobile content industry.
Within a few years, his products had gained a massive global audience and were generating annual revenues in excess of $75 million. Recognizing his trailblazing achievements, Apple’s executive leadership invited Okaro to join them onstage during the iOS 3.0 launch event at Apple’s Cupertino headquarters in 2009. After six years, Okaro moved to another global media company in 2010, this time a finance organization, where he started their consumer mobile and connected devices business and again produced outstanding results. In a short time, his creations amassed a monthly audience of 17 million unique users, generating multi-million-dollar revenues and winning a host of industry awards, including app of the year from Apple.
Though successful, Okaro had always wanted to be involved in Africa’s technology revolution. To test the waters, he developed the first football mobile application in 2007, and targeted it at Africa. Observing the encouraging uptake, Okaro sensed the opportunity and decided to get involved.
“The [football] app made it pretty clear to me, as far back as 2007, that people in several African countries valued quality content and a great experience. Having seen this at the start of the mobile content revolution in the US, I wanted to get more involved as an entrepreneur but couldn’t because I was employed full time. I struggled with this for a really long time then it finally occurred to me that the most effective way to play in the market was as an investor in talented entrepreneurs with exciting digital ideas,” he says.
Leveraging his network of contacts, Okaro sought and cultivated relationships with entrepreneurs on the continent which led him to make first-round investments in a number of startups.
From his vantage point, Okaro sees abundant opportunities for innovation in Africa, especially around mobile technology.
“Observing from the sidelines, the telco’s are well positioned to be at the forefront of the technological revolution on the continent, but it appears they don’t have the vision or talent in place to think through and execute in a way that has never been done. No market, except Japan when it started, has similar characteristics with African countries. Just like it was in Japan, the majority of people who come online in Africa, will come online on a mobile device and for many, their entire digital existence will be on a mobile device.”
“This presents an incredible opportunity. They need to understand that if they want to maintain their leadership position in the market and play a pivotal role as a broader participant in the economy, it is imperative that they create a frictionless enabling environment for entrepreneurs and new businesses.”
Declining to elaborate on his next challenge, Okaro offers a confident smile,  leaving no doubt  about its success.

‘Failure Was Not  An Option’

It was a move to South Africa and the boredom of being an employee that spurred Asher Bohbot to head what is today a $1.4-billion information and communications technology company, Enterprise Outsourcing Holdings, popularly known as EOH.
Born in Morocco, the 61-year-old chief executive moved to South Africa at the age of 27.
He had been living in Israel at the time when a friend suggested they travel to South Africa for two weeks.
“I asked what is South Africa. I didn’t know about South Africa at the time. I came, but he didn’t come. He dropped me at the last minute. I knew nothing about the place [Johannesburg]; that two weeks turned into longer than that,” he says.
<img loading="lazy" decoding="async" class="alignleft size-medium wp-image-3485" src="/wp-content/uploads/2017/04/IMG_4923-200x300.jpg" alt="" width="200" height="300" />
“I behaved for the first week or so as a tourist in Johannesburg. I took a bus down to a museum and there I saw this girl who shared a flat with me in Israel. I didn’t know she was here.”
They took the bus to her home where Bohbot met her husband. A few minutes later a friend of theirs came to visit. He said he came from Israel to recruit industrial engineers for his business. Bohbot went for the interview and decided he’d work there for a short while. He worked at Laminate Industries (later to be part of the PG Group) as an industrial engineering manager in 1981 and started moving up the ranks, becoming General Manager and later Executive Director of Distribution of the main board of PG Bison.
Throughout his career, he was exposed to general business leadership, business systems and supply chain logistics, but the work became unfulfilling and boring for a man in his late twenties. He had had an affinity to system processes and this spurred Bohbot to start something from scratch.
The business idea came at 3AM one morning. He drew a picture charting how he thought this company would work. That drawing lies in his offices in Bedfordview, just outside Johannesburg. At the time, he wanted his business to bridge the gap in the information technology sector. EOH has stuck to its foundation.
But Bohbot doesn’t see himself as the classical entrepreneur, especially since he worked for the same company for 17 years before starting EOH.
“I don’t believe entrepreneurs reside only as little start-up guys working from a garage. Entrepreneurs exist within a company where they can influence capacity, to do things greater than an individual or entrepreneur can make on life or society,” he says.
“The notion that a corporate is anti-entrepreneurship is wrong. It’s the culture and nature of the business that dictates it. But we somehow take it that the corporate is the opposite of entrepreneurship.”
This chief executive says that EOH tries to embrace both. He says it’s worked so far and he believes it will similarly work like that in the future.
“Entrepreneurship, in our definition, is the ability to have one head and one brain that manages demand and supply.”
EOH is a firm with offices in cities in South Africa as well as 30 other locations across the continent. The business provides consulting technology and outsources solutions from the continent and Britain, operating in infrastructure, software and services segments.
His first client was his employer at the time, PG Bison, and 17 years later they remain so.
The business is one of the largest IT firms in the country and is set on growing. It listed on Africa’s biggest bourse, the Johannesburg Stock Exchange in 1998. At the time, the listing was done to create more awareness rather than making money. Today, EOH is a $1.4-billion company with revenues around $610 million, and employing over 8,000 people. The company is making good progress in expanding elsewhere in Africa and now has a presence in 29 countries. Its success can be attributed to its winning formula for acquisitions which has been carefully structured.
“We want to grow, be bigger and we want to develop. The bigger we are, the more influence we will have and also have a positive impact on our environment. Growth is paramount for us,” he says.
In 2014, Bohbot was named Business Leader of the Year at CNBC Africa’s All Africa Business Leadership Awards (ABLAA’s) for his success and bold contribution to solutions-based business and IT strategies. Over the years he has also won numerous awards which he says are merely recognition for the work EOH does.
Had Bohbot not gone to the museum, he could have boarded a different bus and led a different life.

The Bus That Led To  A Billion-Dollar Business

Getting Africa out of the development woods will require more than technology and telecommunications. After decades of lost trading opportunities, Africa needs a new trading lens. Personal and institutional initiatives to close the lacuna between ‘extant realities’ and development ideals is desperately needed.
New advanced technologies, progressive policies and new investment models to integrate economic and political systems would certainly help. Africa must open up its markets to African customers. We need to build new factories, generate energy solutions and open up trade corridors across the vast continent.
Intra-Africa tourism barely exists and intra-Africa trade is low, between 10 and 12% of total trade. Trade within Africa needs to surpass trade between Africa and the rest of the world. West Africa now accounts for 40% of the total African, Caribbean and Pacific trade with the European Union.
The Southern African Development Community (SADC) region accounts for about 45% of Africa’s trade with the rest of the world. In East Africa, Kenya’s top 10 export markets are Uganda, Tanzania, Netherlands, the United States (US), Britain, Pakistan, the Democratic Republic of Congo, UAE, South Sudan and Egypt. The five African countries here account for more than 30% of Kenya’s total exports. Kenya’s tea makers are yet to make a serious push into Nigeria, Africa’s largest market.
Ethiopia, Rwanda and Burundi produce excellent Arabica coffee. Most of it ends up in North America and Europe. You will search very hard to find East African produce in stores between Dakar and Douala. European coffee brands however abound.
Africa is largely disconnected from itself due to its poor infrastructure, restrictive immigration policies, corruption, failure to formalize informal trade, and unclear customs and immigration rules. Fresh facts emerging, however, suggest it is improving slightly. Data for 2013/14 shows that intra-African finance is a significant source of foreign investment in low and middle-income countries such as Burundi (79%), Namibia (42%), Rwanda (62%), South Sudan (64%) and Uganda (45%).
National and regional policy frameworks need to be strengthened and harmonized. This is a job for governments, companies and citizens alike.
Easing trade barriers would help. Building on a current system which allows citizens visa-free access to other West African countries for 90 days, the 15-member Economic Community of West African States (ECOWAS) is planning to launch a biometric identity card in 2016. It will be a digital identification card, travel document, and residence and work permit. This biometric passport is expected to resolve the regulatory bottlenecks that penalize local businesses at the expense of their international competitors.
Similar integration plans in other regional economic blocs also exist, aimed at reducing the expense and stress of traveling and trading across Africa.
Kinshasa and Brazzaville are only divided by the Congo River, yet a return ferry ticket cost the equivalent of $40, more than 40% of the average monthly wage for a Kinshasa resident. It costs less to move a container of maize from the flood plains of the Mississippi, US, to Dakar in Senegal, than it is to take the same harvest from Dakar to Tema in southern Ghana.
An ongoing diplomatic détente between Accra and Nairobi seems poised to attenuate these issues.
Puzzled by the poor levels of trade between Ghana and Kenya, Leah Nduati Lee, a Kenyan married to a Ghanaian, organized the very first Kenya Trade Expo in the Ghanaian capital last November. The three-day event smoothed trade relations between the two regional giants, building on the seven agreements signed in 2014 by President John Dramani Mahama and President Uhuru Kenyatta, to consolidate existing economic and trade ties, and deepen institutional cooperation in the energy, ICT, trade, tourism, transport, agriculture and education sectors.
According to Kenya’s Export Promotion Council, the country’s exports to Ghana were worth KSh479 million (around $4.7 million) in 2014, while imports from Ghana were worth KSh369 million ($3.6 million).
During the expo, Kenya’s envoy to West Africa, Ambassador Tom Amolo, said that consensus building between Africa governments to tackle integration issues is beginning to happen.
“Kenya is fully open for business,” says Amolo. “Our investment promotion frameworks continue to foment long lasting networks and commercial alliances between the business communities in East and West Africa… Deepening and broadening integration is essential for Africa’s inclusive development.”
The momentum between the gateway economies across Africa needs to be sustained.

TRADE WINDS  MusT Blow

In the heart of San Francisco, not too far from the Golden Gate Bridge, lives one of Africa’s most successful technology entrepreneurs, Vinny Lingham – an erstwhile university dropout from the University of Cape Town.
It seems that almost any chance encounter could spark the imagination of the entrepreneur, who became a Global Young Leader in 2009. A simple moment in a coffee shop gave birth to an idea that would make him millions.
“I walked into Starbucks in San Francisco and paid for my coffee using a mobile gift card on my iPhone. It was then that I decided to build an app that could let consumers do this for any merchant out there.”
His research showed a great demand for such gift cards. So in 2012, without hesitation, Lingham left his job as the CEO of Yola.com, one of his start-ups, to launch Gyft – a digital gift card app. The app sells gift cards and makes it easy for businesses to offer loyalty programs to consumers.
Gyft grew into a success and became one of the top gift card services in the world. It also appeared on the Ellen DeGeneres talk show.
Last year, Lingham sold Gyft to First Data – a global payment processing company – for $54 million. This was another great feat for the man who gained international success from his other start-ups, including the Silicon Cape Initiative and Clicks2Customers.
But Lingham’s new-found success in the United States (US) was miles away from his humble beginnings in South Africa. He grew up in the Eastern Cape and later moved to Cape Town where he studied Information Systems at the University of Cape Town. In his final year, Lingham dropped out to pursue his own ventures.
Lingham relocated from Cape Town to the US is 2008 with hopes to compete in the global technology market and take advantage of the opportunities that Silicon Valley offers. The US market promised platforms and billions of dollars for tech-entrepreneurs to develop and test business and technology ideas and has made household names of companies such as Snapchat and Uber.
“The South African market is constrained by both capital and the skills to execute and therefore the approach has had to be different. Investors in South Africa by and large do not understand how to finance, grow and support early stage start-up technology businesses – the balance sheets, financing and execution strategies are not well understood here – but in the US it’s become a well-oiled machine,” he said.
Lingham says there are few opportunities for investors in South Africa to exit their start-up companies as larger companies are not interested in mergers and acquisitions.
“Almost every business in Silicon Valley, doing more than $50 million a year in revenue, has a corporate development person who has a full-time job finding companies to buy. That culture has not permeated into South Africa and so the upside for angel investors is quite limited when it comes to making a return on investment in a short space of time.”
He says there is a need for entrepreneurs in Africa who are focused on shaking up the system and drive down margins of larger companies. This could draw the bigger companies into mergers and acquisitions.
In 2014, Lingham served as a judge on the South African version of Dragons’ Den. The television show, which originated in Japan, allows entrepreneurs the opportunity to pitch business ideas to a panel of businesspeople in search of financing.
“Through this experience, I learned that I really have an affinity for consumer products – I really loved the entrepreneurs who were pitching ideas that consumers would want to buy, such as TodPod and CandyWasted – which recently aired.”
When it comes to advice for budding entrepreneurs Lingham keeps it simple.
“Focus. Do one thing really well, and try to be the best you can be at that one thing.”
He says far too many entrepreneurs try to do too much too soon.
“I meet too many entrepreneurs who are doing five different things in their business and making money from either none of them or some of them – both being bad strategies. You need to find a product market fit and focus on your core business. That’s the key,” says Lingham.
When he’s not launching businesses or advising budding entrepreneurs on new ventures you can find Lingham on the golf course, with family or even in the line of a coffee shop awaiting his next million-dollar idea.

A Million-Dollar Idea  In A Coffee Shop

<h4>Entersekt</h4>
Entersekt is a global pioneer in transaction authentication for financial institutions. The system combines electronic certificate technology with encrypted cloud messaging and the convenience of mobile phones to give banks, and their customers, full protection from cyber criminals looking to steal users login details and passwords. Entersekts clients, who include Investec, Absa, Old Mutual, Nedbank and Capitec, have allegedly reported an elimination of online banking fraud since implementing the system. Over 12 million customers are protected by Entersekt’s security software which has authenticated more than 250 million transactions since being launched in 2010. The start-up has so far raised around $10 million and has been implemented in Swiss financial institutions with plans to expand to Nigeria, Britain, Netherlands and the United States.
<h4>iono.fm</h4>
Described as PVR for radio, iono.fm is an audio-on-demand platform that publishes content from radio stations, podcasts and audiobooks. Listeners create their unique playlists and download content for later use. The revenue model centers on short audio adverts and all the content is currently free but going forward they may charge for exclusive content and added functionality. Where traditional radio stations can only monetize their content once as it is streamed live, iono.fm can monetize the content multiple times with different advertisers as the audio is stored online for repeat use. The platform currently generates over a million page views and 800,000 downloads per month. In the second quarter this year, iono.fm saw a 400% increase in downloads. The company has been self-funded since 2008 but is now engaging with venture capital investment to expand operations to the rest of Africa, India, and South America.
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<h4>wiGroup</h4>
wiGroup is a specialized point-of-sale integration platform that enables retailers of any size to tap into the mobile money market. Retailers that plug-in to the wiPlatform are able to accept any kind of current or future mobile payment, loyalty, reward or couponing application that exists on the platform. MTN Mobile Money, FlickPay and M-Pesa are some of the apps that have been integrated into the system which services over 50,000 till lanes across South Africa and has processed close to $250 million in mobile transactions. wiGroup’s clients include Pick n Pay, Shoprite, Vodacom and KFC, and the revenue model is based on transaction fees and monthly licensing subscriptions for apps that run on the platform. The company has a presence in Namibia and Mauritius, with plans to expand into Nigeria, Zambia and Britain in the near future.
CapeRay
CapeRay develops and manufactures advanced breast cancer screening equipment combining X-ray and ultrasound technology to enhance a clinician’s ability to detect cancer in women &#8211; especially those with dense breast tissue where conventional methods often miss a cancerous lesion. The technology is the first of its kind globally. The start-up spun away from the University of Cape Town around four years ago and has so far raised $2.26 million in funding pre-revenue. Clinical trials have been completed and an offering memorandum is now in front of 15 major multinational companies with CapeRay looking to raise an additional $10 million to begin rolling out the product in the United States, Europe and South Africa.
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<h4>iKubu</h4>
iKubu specializes in developing computer vision and commercial radar systems. The small team of engineers have a deep understanding of embedded software solutions and electronic hardware with a strong focus on algorithm development. The start-up developed a 3D scanning system for automated baggage check-in that has been implemented in major airports, including Heathrow, Sydney and Singapore. The company has, up until now, been bootstrapped by the founders who are engaging with international investors to expand operations.
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<h4>Nomanini</h4>
Nomanini develops and manufactures rugged mobile point-of-sale terminals to sell products such as airtime and electricity in emerging markets. The technology enables vendors in the informal sector to efficiently distribute prepaid vouchers and facilitate micro cash payments with plans in the works to enable additional transactions such as mobile money and insurance premium collections. Nomanini has partnerships in Kenya, Nigeria, Zambia, Namibia, Guinea and Mozambique with active terminals processing over a million transactions in September with the company expecting to process a million payments per month by December. Nomanini has so far raised more than $2.3 million in funding and is engaging with venture capital players in foreign markets for further expansion.
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<h4>8bit</h4>
8bit is a content recommendation platform that connects online publishers to a larger network of content producers driving traffic to members’ websites by showcasing their most popular content on other sites in the network. 8bit’s system automatically detects a site’s top content based on time, click rate and social media engagement and shares impressions across the network of publishers. It is currently in a closed invite only beta stage with South Africa’s leading independent publishers and has begun trialling with the country’s largest media houses. 8bit will officially launch at the upcoming Web Summit conference in Dublin in November after being named as one of Africa’s top 10 start-ups. In the upcoming months the company will be launching its paid promotions platform where publishers and advertisers can promote sponsored content not only on 8bit’s network but on traditional advertising exchanges. Since being founded earlier this year 8bit has raised around $135,000 in seed funding with plans to expand into Kenya, Nigeria and Denmark. 8bit processes over 20 million recommendations per month and in many instances, directs more traffic to publishers on its network than Google, Facebook and Twitter.
<h4>OrderCloud</h4>
OrderCloud integrates all the sales channels of a business, whether telephone, web or mobile, into a single online dashboard for simple and effective order management. The system automatically locates the closest outlet to the customer and links it with the necessary delivery services to process the order. Whether customers pay with credit, cash or mobile money, all your funds are instantly aggregated into a single account which distributes the lump sum to all the relevant parties in the supply chain. OrderCloud is being integrated into large franchises in South Africa though the start-up cannot say who at this point as the information is classified. The company is busy putting together a prominent board of directors and has so far raised $226,000 with plans to raise an additional $900,000 from local and international investors.
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<h4>WhereIsMyTransport</h4>
This month, WhereIsMyTransport will be launching Africa’s first official multi-modal transport application for Cape Town. Commuters using the app are able to seamlessly plot their journey from point to point linking various modes of public transport such as Golden Arrow buses and Metrorail trains with minibus taxis to come online in the near future. The application generates valuable data regarding commuter traffic and congestion enabling cities to more efficiently develop their transport networks. The start-up, still in its infancy, is engaged in talks with investors in three foreign markets to develop similar applications for major metros. The long-term vision of the company will be to open up its application programming interface to allow other developers to build apps using their technology.
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<h4>Ekaya</h4>
Ekaya has created an online marketplace where you can list, find and rent property from your phone or on the web. Landlords can vet and rate tenants, collect rent and freely advertise their property on the platform. Tenants applying for property pay an administrative fee of less than $10 for all necessary criminal and credit record checks, whereas property agents usually charge around $100. Also, instead of paying a fat deposit upfront, Ekaya offers an insurance scheme where tenants pay a smaller monthly fee that can be used to cover damages. Ekaya makes money by taking a small commission of the rent and is looking to expand its insurance, micro-loan and deposit components with added loyalty and reward features. Ekaya recently raised $126,000 in angel funding and has over 1,000 estate listings in Cape Town since the beta version went live about two weeks ago with the platform aiming to launch in Durban and Johannesburg in the next few months.

Ten Technology  Start-Ups To Watch

One of the major highlights for the Nigerian Stock Exchange (NSE) in 2013 was the launch of the X-Gen. It is a new trading platform that was introduced in a bid to improve and deliver a first-rate technology platform. The system will also enable the NSE to host other exchanges across the region and acts as a great impetus for new market participants to enter the African capital market space.
The NSE was established in 1960 as the Lagos Stock Exchange and as of December 2013 had 200 listed companies with a market capitalization of around $80 billion.
The NSE closed the year with two new equity listings on the main board, while the bond market recorded 19 new listings with an uptick in the value of new issues.
The bourse also had a re-launch of its Alternative Securities Market (ASeM) for small and medium companies. It introduced a new market structure for trading equities and Fixed-Income Market Making.
“In 2014, the Exchange’s primary focus will be on growing the capital market in preparation for achieving emerging market status. The NSE will facilitate access to and participation in the market; increase our footprint on the continent and deploy a risk framework to safe-guard the market venue,” said Oscar Onyema, the CEO of the NSE, at the exchange’s yearly review for 2013 and outlook projections for 2014.
“Our goal is to get promoted to the emerging market index,” he added.
The NSE started operations in Lagos in 1961 with 19 securities listed for trading. Data on listed companies’ performances are published daily, weekly, monthly, quarterly and annually.
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Tag: Technology

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