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Internet For Africa, Olé!

After a rough start in 2004, satellite internet and electronic security company Global Telesat now services 16 African countries and boasts a $6 million annual turnover.




While Spain faces a 23.6% unemployment rate and a forecasted 1.7% economic decline this year, Angola is the world’s fastest growing economy of the last decade, with an impressive 12% growth forecast for 2012. Ten years after the civil war (1975-2002), Angola has risen like a phoenix from the ashes.

Few could have predicted this. Ivan Pizarro (37), along with his brother, David (43), and José María Sánchez Soler (52) opted for Angola in the middle of Spain’s construction bubble. “People lived in a Peter Pan world, they spent crazy amounts of money. Our friends called us nuts when we left,” Ivan recalls.

Eight years later, Global Telesat has been named Most Innovative Company in Africa by Spanish newspaper El Mundo, while most of the Pizarros’ friends in Spain are struggling. “Do you see this pile here? All Spanish and Portuguese applications. Most of our Spanish friends have tried to get a job at Global Telesat. We’ve hired 10 of them.”

More than that, the European economic meltdown has been advantageous for Global Telesat. “We are able to recruit Europeans we didn’t have access to before. And all the European companies fleeing to Angola need the internet.”

Global Telesat’s history began in 2003. Its founders were commissioned to build a satellite cyber cafe for the Spanish soldiers in Iraq, which they did from their parents’ garage during the Christmas holidays. “The company that commissioned us then offered us a telecommunications license in Equatorial Guinea via José María, so we rushed to create Global Telesat and flew there,” Ivan says. They “escaped” after three days.

Instead, they decided to embark on a similar adventure in Angola. Off they went, with $10,000 among the three of them plus “two very cheap, old and tired second-hand jeeps”.

“José María and I managed to find a house in the city center, which was in a really bad state. It cost $2,500 a month and needed $50,000 worth of renovations,” Ivan says. Due to investment expenses, the three only managed to cover costs during the second year. “We almost went bankrupt twice. Luanda’s incredibly high cost of living was the toughest aspect of getting started.” For Sánchez Soler, finding the appropriate local partners in Angola was the number one difficulty, before “bureaucracy and a very slow business rhythm”.

The Pizarros and Sánchez Soler started out doing a bit of everything, including fixing and selling computers and VSATs (very small aperture terminals). They briefly ran an LED display business. “It was a rough time, in a tense environment. We knew nothing and no-one, lived without furniture and worked from our sitting room for almost two years, until we could afford our current office.”

Soon, Global Telesat embarked on one international high-profile satellite internet project after the other. It created the well-publicized, first continental satellite internet connection from Morocco to Europe via the Strait of Gibraltar in 2004; connected the Spanish army in Herat and Kabul to the world-wide web in 2006; and built satellite cyber cafes for soldiers in Libreville and Kinshasa during the UN supervision of the Congo elections in 2007.

Officially registering Global Telesat in Angola was not easy. Sanchez Soler and David bought an existing, but inactive debt-free, Angolan company in 2004. It had a so-called ‘alvara’ (permit), which allows you to import and export and is “a must for every company in Angola”. Ivan points to a huge pile of documents in the cupboard behind him. “Never start a company in Angola,” he says jokingly. “You need each one of those, and each requires 20 letters to a given ministry. It takes years to complete the whole process.”

Angola ranks 168 out of 182 countries on Transparency International’s 2011 Corruption Perceptions Index, but Ivan says Global Telesat won’t accept or pay bribes. “That has both disadvantages and advantages. We miss out on many business opportunities because of that, but at the same time, it secures lots of deals with the type of people we want to work with: embassies, NGOs and international companies and organizations.”

Judging from Global Telesat’s achievements, one might wonder exactly what opportunities it has missed out on. The company recently became the first in Angola to own a European teleport. It has the exclusive rights to RascomStar in Angola and owns RascomStar’s only European teleport. Global Telesat is also the only Angolan representative of MWEB and Israeli joint venture company SkyVision, one of the world’s leading satellite operators.

With around 50 employees, the majority of them Angolan, Global Telesat provides satellite internet and electronic security equipment to major clients, including the Cuban and Angolan governments; Angolan state oil company Sonangol; Interpol; the Angolan Immigration Service (SME); beer brands Cuca, Ekka and Nocal; Unicef; the Angolan armed forces (FAA); embassies; and international NGOs. Its annual turnover in 2011 was between $4 and $6 million. This year, it forecasts an $8 million turnover. Global Telesat has grown a steady 25% annually.

The fact that Multitel, MS Telecom, ITA and Dimension Data are Global Telesat’s main competitors is anything but a problem. “What makes doing business in Angolan telecommunications unique and fun is the fact that almost all of the competitors are friends. We even share houses sometimes,” Ivan says.

Ivan studied electro-technical engineering after specializing in telecommunications in Ireland. He accepted a job there at Dell and experienced the boom and burst of the dotcom bubble while at Dell. He then moved to Hewlett-Packard in Barcelona and various smaller IT companies before becoming project manager of Siemens Germany. For four years, he oversaw the implementation of GSM satellite stations in the Middle East, USA, China, Pakistan and Brazil. He also brings extensive satellite internet experience from some time as a political activist.

Originally a technical engineer with a telecommunica-tions specialization, David has seven years of electronic security experience at Digisoft in Spain.

Sánchez Soler studied piloting then physics in Granada. He worked as a salesman at Spain’s first private, commercial IT group, Centre de Càlcul de Sabadell, for eight years. At the Barcelona Olympic Games in 1992, and together with David, he developed software to feed 20,000 people a day on behalf of the company, Jomipsa. Next, as Jomipsa’s commercial director, he dealt with more than 50 countries, including Angola, until 2003. Jomipsa designed and manufactured combat food rations for armies.

After Angola’s civil war ended in 2002, the nature of doing business with Angola changed drastically. “But Jomipsa didn’t want to invest in Angola, so I jumped out and looked for partners. In December 2003, we founded food company SPA (Societdade de Produtos Alimentares, Lda.), which we closed after internal differences.” Global Telesat was next.

What makes Global Telesat stand out, as much as its breakthroughs, is its well of remarkable stories. One example is that of its first employees.

“Our guards were constantly being harassed by Jehovah’s Witnesses or Igreja Universal members,” Ivan says. “When I came back from work one day and caught them reading these pamphlets, I got angry. ‘If you’re bored,’ I said, ‘I’ll give you something interesting to read.’ I gave them books on telecommunications and IT, and they got excited. After work, we allowed them to sell satellite internet connections and electronic security products. They decided to copy the church guys and attack in couples, which worked. They were then hired by Global Telesat.”

One of these former guards specialized in satellite internet installations, one in sales and the other in electronic security. Two of them now own their own companies.

Global Telesat is trying to make a difference in Angola. “Among other projects, we have offered hundreds of professional courses for internet installers. We may soon get support from the Ministry of Education,” says Ivan.

Global Telesat consists of a satellite internet and an electronic security department. Ivan heads the internet branch; David the security branch. Sánchez Soler, the company’s CEO, lives in Spain. All three own equal shares. It is a structure that works.

Global Telesat’s satellites are located in a ring around the earth at a distance of 38,000km from the earth. From that position, they perform a 24-hour rotation around the globe.

Monthly corporate rates for Global Telesat’s satellite internet connections start at $300 and can reach upwards of $50,000. A once-off investment starts at $3,000. “After that, the price difference with a terrestrial is not that big,” Ivan says. “Satellite internet reaches any place in Angola, including its most deserted areas and oil rigs in the middle of the sea. This is the key advantage of satellite internet over fiber-optic internet.” And prices are going down, mainly because of Global Telesat’s access to Africa’s RascomStar satellite.

“Look!” Ivan says. He hands me his mobile phone, which shows moving images of Global Telesat’s office. “What you’re seeing is being recorded right now by our camera systems and broadcast over the satellite. A simple internet connection allows me to check my premises on my iPhone. “This is a killer in Angola, because people can monitor their business without being present, even from another continent.”

Adds David: “Since the war, Angolans feel the need for more safety. That includes electronic security, which is lacking.” Global Telesat also offers automatic fire detection and extinguishing equipment.

“We had two competitors in 2004, Infortel and AfriAlarm, but their prices were double what ours were. We’re not the biggest electronic security firm in Angola, but unlike our competitors, we operate professionally according to European quality standards. We offer the best equipment available. Our surveillance cameras’ definition, for example, is up to four times sharper than those of our competitors.”

Many of Global Telesat’s electronic security systems are used to prevent labor abstinence, for instance, through fingerprint controls. At the end of the month, the fingerprints are reviewed and registered and salaries are paid accordingly.

“Apart from equipment that could, in theory, be used for spying, we also offer anti-spying equipment such as mobile phone frequency blockers or tools that can localize hidden cameras,” David says.

The Pizarros and Sánchez Soler have never regretted setting foot in Angola. “Unlike Europe, rules and regulations are no major obstacle here,” David says. “You can truly set up your business according to your wishes. Plus, Angola is a country full of companies rich in financial resources.”

“After 27 years of war, Angola offers immense room for growth and so many opportunities,” Sánchez Soler agrees. “Competition is not as high as it is in Europe. We moved to Angola at a time when hardly anyone in Spain knew Angola. We bet on Angola, and we won.”

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Data Is The New Gold




The city of Johannesburg was established in 1886 after the discovery of gold. Gold is a mineral that has been deemed valuable for thousands of years. It does not rust and it is malleable.

Gold has been used in jewelry as well as in the semiconductor industry to build electronic circuits. You can bury gold for hundreds of years and the worst it can get is accumulate dust.

Because of its durability, gold has been used to store value in the form of money. In many countries, printed and minted money used to be linked to stored gold, which was reserved in the central bank. This way, central banks used to print as much money as they had gold reserves. There had been many attempts to move away from the gold standard beginning in the United Kingdom in the 1920s.

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However, the first successful move from the gold standard was in the 1970s during the Nixon Administration in America.

At this time, the United States (US) ran out of gold and moved from the gold standard and floated the US dollar. Floated currency is regulated by the laws of demand and supply and is closely linked to the economic productivity of a country.

The idea of gold as the most important economic asset has passed. Instead of entrepreneurs going to California to look for gold, as they did in the past, they now go to Silicon Valley to create companies that exploit the acquisition and sharing of data.

Facebook is one such company that has connected the world and expanded our friendships – although, in my opinion, it lowered the quality of those friendships.

Facebook’s most valuable asset is not the software that connects people, which can easily be replicated, but the data of the over two billion active users it connects.

The most valuable asset of Uber, the ride-hailing service that does not own a single taxi, is the data of the people who use it. The prime asset of Google, the largest library, which owns no physical library, is the index that takes customers to their desired websites.

Therefore, the new valuable asset is not gold but it is data. Data has become the new gold! With a population of 1.3 billion people and a total purchasing power parity gross domestic product (GDP) of $6.74 trillion, the population of Africa is growing at the rate of 2.6%.

Much of Africa’s demographic is youthful. Much of this population is increasingly connected to the internet.

In 2017, Facebook had 170 million subscribers, which constitutes approximately 15% of the total population of Africa and this subscription is growing. Companies such as Google reportedly give accounts in exchange of subscriber data. These companies have been reported to have sold this data to entities such as advertisers, political parties etc. The exchange of personal data for an account is unfair trade because the value of personal data is far greater than the value of an account. 

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What do we do to commercialize the vast African database?

Firstly, we need to develop technological capacity to gather, process and monetize the African database. To achieve these, we ought to improve and expand our educational institutions, paying attention to the development of programs in data science. We need to embed data science subjects such as data analytics and software engineering into primary, secondary and tertiary education.

Governments and the African Union ought to expand projects such as the Deep Learning Indaba as well as the African Institute of Mathematical Sciences that are developing mathematics, machine learning and artificial intelligence expertise in Africa.

To gather data, we need to politically organize ourselves to create economies of scale. Regionally, organizations such as the Southern African Development Community (SADC) and Economic Community of West African States (ECOWAS) should create regional data banks that collect, protect and store regional data.

 Continentally, the African Union should coordinate data gathering and develop data protection policies. We need to create laws and policies that regulate data nationally, regionally and continentally.

– Tshilidzi Marwala is a professor and Vice-Chancellor and Principal of the University of Johannesburg. He deputizes President Cyril Ramaphosa on the South African Presidential Commission on the Fourth Industrial Revolution.

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Everything You Need To Know About The Future Of Pesticides And Bees





Seeing a bee in the city often results in panicked humans running away out of fear of being stung. But the bees are likely less interested in humans than they are in the wildflowers they’re circling around, which are likely a safe and pesticide-free place for the bees to feed. Contrary to what we might assume, researchers have found that urban bees tend to live healthier lives than rural ones — they reproduce more, have more food stores, encounter fewer parasites and live longer.

Pesticides are a tricky topic — while they are great for the crops they are meant to protect, they harm the bees that agriculture relies on. Their use sparked debate at the Forbes 2019 AgTech Summit, where beekeepers discussed the impact of these chemicals for bees, and the potential research still needed to understand their effects, and how technology, urban settings and regulation will affect the future of pollinators. Here’s everything they said — and you need to know — about how pesticides affect bees.

What are pesticides, and how do they affect bees?

Farmers have traditionally used pesticides to control pests like weeds, insects, mold and mildew and animals like rats and mice, according to the National Institute of Environmental Health Sciences. But they weren’t supposed to affect bees, who are critical to our food system — their pollination impacts every third bite of our food, according to the Pesticide Action Network, a nonprofit that challenges pesticide use in farming.

The most harmful chemicals to bees are known as neonicotinoid pesticides. Scientists have found that bees can be poisoned by flying through a field sprayed with the chemicals, but usually bees find harm through drinking contaminated pollen, nectar and water over time, according to PAN. Exposure to these pesticides can detrimental harm to bees over time, weakening their immune systems, shortening their adult life cycle and increasing their disorientation, and could be a cause for Colony Collapse Disorder. While the U.S. Environmental Protection Agency banned 12 types of neonicotinoids in May — from companies Syngenta, Valent and Bayer — there are still 47 more types on the market. 

Can technology help with pesticides use?

There’s lots of startups looking into technology to change pesticides use and how we define them, especially in Europe, said Dr. Fiona Edwards Murphy, co-founder and CEO of ApisProtect. Her company, based in Ireland, utilizes machine learning to gather data about bee hive health. But Carly Stein, founder of Beekeeper’s Naturals, said that to completely rely on these new solutions for pesticides wouldn’t necessarily be the right solution. “To think there is going to be a pesticide outlet that’s not going to be damaging in some way, shape or form is just a little bit naive,” Stein says.

If anything, removing pesticides all together could mean growers would have to resort back to older methods of pest control that could potentially be more harmful to the bees, says Stein, who was listed on Forbes’ 2019 30 Under 30. Instead, there should be further research into how pesticides interact with other chemicals, and the subsequent effect on bees. Her company — whose mission is to reinvent the medicine cabinet with bee-based products —outsources its production to regions with no pesticides use like Canada, and conducts third-party pesticides testing on all its raw materials to produce its organic products.

pollination panel agtech
From left to right: Moderator Chloe Sorvino, Timothy “Paule” Jackson, Dr. Fiona Edwards Murphy, Carly Stein and Ellie Symes speak about pollination at the 2019 Forbes AgTech Summit.MATT KANG FOR FORBES

How can urban beekeeping help?

But there are locations that are more sustainable for beekeeping, though, and they might not be where you predict. Timothy “Paule” Jackson’s nonprofit, Detroit Hives, builds urban bee farms in abandoned lots in Detroit, Michigan. By planting wildflowers, it provides bees a safe place to feed with little to no pesticides, Jackson said. “We have so many bees where wildflowers are sprouting, and we’re not spraying any chemicals on these wildflowers that they are actually boosting the native bee population,” Jackson says.

Stein mentioned that urban bees are often healthier than wild bees because of urban bee farms like Detroit Hives. While she loves meeting urban beekeepers, the issue is that there aren’t enough of them to sustain commercial production in the U.S., she says.

How can growers help beekeepers?

While there may be no immediate solution to pesticides, what’s needed is a stronger line of communication between beekeepers and growers, said Ellie Symes, CEO Of The Bee Corp and winner of the THRIVE Sustainability Award. She’s noted that her company has actually started working closer with growers, helping bridge the gap of education between the two groups of agricultural workers. It’s helpful for at least beekeepers to know what crops are being sprayed with pesticides and when, she says.

“We are starting to see the different players working together, the chemical companies getting involved and being interested and that’s what matters,” Symes says. “We’ll figure this issue out, but everyone’s gotta be involved.”

=Haley Kim; Forbes Staff

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The Anatomy Of A Fake Cryptocurrency Trade: How Exchanges Create Phony Transactions





Take a close look at trading activity on BKEX—a cryptocurrency exchange founded in 2018 and registered in the British Virgin Islands—and you’ll see something odd. Compare its transactions side-by-side with those of Binance, one of the largest crypto exchanges in the world, and you’ll notice BKEX’s trading history is a replica, printing the same numbers delayed by a few seconds.

According to CoinMarketCap, BKEX has $1.1 billion in daily volume, making it the 20th-largest exchange on the planet. Yet it seems to be simply copying Binance’s trade history and passing it off as its own, in perhaps the laziest attempt in history to fool people into thinking it’s a lively place to trade digital assets.   

A new report by Alameda Research, a 20-person crypto trading firm with offices in Hong Kong and Berkeley, California, reveals a clever set of tricks used by crypto exchanges to fabricate volume.

In the wake of other reports on phony trades, including one by digital asset manager Bitwise indicating that 95% of all transactions are bogus, Alameda felt it could create better research by leveraging its trading data and experience.

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The startup was cofounded in 2017 by Sam Bankman-Fried, 27, an MIT alum and former trader at high frequency trading outfit Jane Street. Gary Wang, 26, a fellow MIT grad and former Google software developer, is his cofounder. The firm has $100 million in assets, and over the past month it has traded $1 billion a day on average, making it one of the largest crypto trading firms in the world. 

Exchanges make money by charging users to trade, and they have many reasons to artificially inflate volume. More activity means a higher rank on the still-popular website CoinMarketCap, which can attract new users.

Exchanges also charge fees to new cryptocurrency projects that want to get listed in their marketplace, and the perception of popularity helps them command higher rates. Since an exchange’s place of business is just a website or an app, and many located outside the U.S. are unregulated, it can publish any numbers it wants and call them trades.

Meanwhile, CoinMarketCap continues to insufficiently vet exchanges’ transaction volume, often taking companies at their word and publishing dubious numbers. 

According to Alameda’s research, another method exchanges use to juice their statistics is sneaking in large, fake transactions amid a flurry of smaller ones. CoinEgg, a Hong Kong-registered exchange that trades $1.1 billion a day reported by CoinMarketCap, recently employed this tactic with litecoin (LTC) trades.

During a period when Alameda observed 15 different offers to buy and sell litecoin in a maximum quantity of 134 LTC, several trades printed as large as 2,000 LTC, as if a buyer appeared out of thin air. 

Trading marketplaces typically publish their “order book,” showing a list of bid prices at which people are willing to buy an asset, plus a separate set of offer prices where people are willing to sell.

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For instance, Bill might be willing to buy bitcoin at $10,000, while Mary wants to sell at no less than $10,050. For a trade to happen, a new buyer must be willing to pay the $10,050 that Mary is offering, and the vast majority of trades that clear will align with orders that previously showed up in the order book, unless two users place offsetting orders at the same exact time. 

Yet on some exchanges, trades get executed at prices and sizes that fall outside anything sitting on the order book. On Digifinex, a Singapore-based crypto trading venue, Alameda observed bids and asks for bitcoin between $8,296 and $8,298, but several trades printed at $8,290 and $8,293, prices lower than what anyone was willing to sell at.

On LAToken, a Moscow digital exchange, Alameda saw bids and offers with a maximum size of 1.6 bitcoin in the order book. Implausibly, several trades sailed through at sizes up to 20 bitcoin. LAToken founder Valentin Preobrazhenskiy says his platform only has a “tiny share” of 20-bitcoin orders and that exchanges use inflated volumes as a marketing tool.

“The situation would change when large exchange-ranking sites would add a section for trading volumes based on trades reported to regulators,” he says. On Singapore-based ABCC, the best bid and offers Alameda saw were for sizes less than one ether, yet several transactions materialized with sizes of up to 11 ether. 

Among trading venues, there’s also the well-worn method of simply printing transactions that fall in the middle of the bid and ask prices, which Alameda’s research spotted in IDAX and Coineal. In total, Alameda’s report gives examples of fishy trading patterns on 60 different crypto exchanges. Aside from LAToken, none of the exchanges named above responded immediately to Forbes’ request for comment. 

The methodology behind Alameda’s research was to test each exchange on six different criteria. First, they manually looked at an exchange’s order book and observed where trades printed. If more than 10% of transactions didn’t appear on the order book, it failed on this dimension. Another test involved observing the percent of an exchange’s trades that took place at the best available bids or offers. 

A third criterion was to analyze how much Alameda itself traded on a given exchange, since the startup deals in “virtually every cryptocurrency,” considers its algorithms “exchange-agnostic” and estimates that it trades 5% of all global crypto volume.

“If we trade more than .5% of an exchange’s reported volume, we consider that exchange to pass according to this criterion,” the report  reads. For more details on its methodology, see the full report.

Beyond exchanges’ bad behavior, the report has other provocative insights. It claims that crypto—including both “spot” trades of actual digital assets and derivatives, like bitcoin futures—trades $38 billion in real volume a day, and 87% of that happens on Asian exchanges, with just 9% happening on U.S. venues. The strict regulatory environment in the U.S. is likely a contributing factor in Asia’s dominance, Alameda says. 

Compared with Bitwise, which released a follow-up fake volume reportin May 2019, Alameda thinks more crypto volume is real. For large exchanges like OKEx and Huobi, which were founded in China, Alameda estimates about 70% of their transactions are authentic.

Bitwise is much more skeptical, as is the Blockchain Transparency Institute, which has estimated that more than 60% of Huobi’s volume is fake and more than 90% of OKEx’s volume is fabricated. 

A Huobi spokesperson says it doesn’t engage in wash trading, but that it has observed some market-makers doing so on its platform, and it takes steps to stamp them out.

An OKEx spokesperson says the company isn’t involved in and doesn’t tolerate wash trading, adding, “Recently we have joined the Data Accountability & Transparency Alliance (DATA) led by CoinMarketCap, as a commitment to reveal as much data as possible.”

-Jeff Kauflin; Forbes Staff

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