Startup Magazine October 2018

FRESH.INSPIRING.ANALYTICAL

0CTOBER 2018 STARTUPMAGAZINE.CO.KE

KSHS. 400/ USHS. 9000 TSHS. 6000/ RWF. 2200

THE PINNACLE

Why Africa’s tallest building will redefine Nairobi

DIGITAL RECEIPTS

How Payment Gate helps businesses generate digital receipts and keep the environment in check

CYBER SECURITY

How to prevent hacks using emails and networks

TRAVEL Where are Your Hiking Shoes? …

Thomson Falls Beckons!

TAKING ETHIOPIA’S LUXURY LEATHER CRAFT TO THE WORLD Abai Schulze, Founder, ZAAF COLLECTIONS

October 2018 Startupmagazine.co.ke

Startupmagazine.co.ke October 2018

FRESH.INSPIRING.ANALYTICAL

Call us in the month of October for a free Coaching Awareness Session in your organization

October 2018 Startupmagazine.co.ke

2

Contents

16 Disruptive innovation is transforming Africa’s economic potential, creating new target markets and unprecedented consumer choice -Interview with Eddie Ndichu, MD, Okash

18 Wanting to raise awareness about the unhealthy and unsanitary conditions in her home country, now 26-year-old Aminetou Bilal launched the “Selfie Mbalitecampaign

32 How to prevent hacks using emails and networks

36 Where are Your Hiking Shoes? …

Thomson Falls Beckons!

Startupmagazine.co.ke October 2018

5

FRESH.INSPIRING.ANALYTICAL

October

2018

Contents 12

14

The Pinnacle

ENTRENEURSHIP LESSONS FROM ETHIOPIA

Techie

The company’s key aim is to empower entrepreneurs by giving them access to credit

Interview Disruptive innovation is transforming Africa’s economic potential, creating new target markets and unprecedented consumer choice

18

26

Main Story Succeeding as an African entrepreneur, an interview with ADDIS ALEMAYEHOU

28

Cyber Security How to prevent hacks using emails and networks

30

Ditial Economy Blankets and wine for financial inclusion

Woman of Power Driving environmental awareness in MAURITANIA

20

Main Story

Why Africa’s Tallest Building will redefine

How PAYMENT GATE helps businesses generate digital receipts

16

22

34

Human Capital

My Hustle

Workforce experiences to match customer experiences: The next frontier for Telco success

How RATEMYSERVICE.CO.KE is disrupting customer experience through tech

Coffee Break 36.

38.

41.

42.

Travel and Leisure Book Review Blog Review Song Review

October 2018 Startupmagazine.co.ke

6 Managing Editor Sylvester Habil Okumu sylvester@startupmagazine.co.ke Associate Editor Adisa Hudson Oroni Tendera Contributors Mariam Abdullahi Edward Obiko Peter Charagu Jonathan Somen Business Development Manager Washingtone Terry Aluoch Murrel Marketing Executive Irene Okoth Operations Simpson Ayodi Photographer Decorus Click Photography Creative Designer Kreative Hub Media

Published by Kreative Hub Media 4th Floor, Bihi Towers, Moi Avenue next to Bazaar.

P.O Box 3875-30200, Nairobi Kenya.

Tel (+254) 20-2088776 Cell (+254) 724 113 683 / (+254) 773 659 940 Email: info@startupmagazine.co.ke Website: www.startupmagazine.co.ke

StartUp Magazine EA

@StartupMagazine_EA

StartUp Magazine is published monthly. Copyright 2018 Kreative Hub Media. All rights reserved. No part of this publication may be produced or transmitted in any form including photocopy, or any storage and retrieval system without publisher's permission in writing.

The views expressed in this publication are those of the authors and do not necessarily reflect the position of the publisher. Readers are advised to seek professional advice before acting on any information contained in this publication.

Important Information for Contributors to StartUp Magazine By submitting content before publication you confirm that: (a) You (and/or other named contributors) are the sole author(s) of the content submitted; (b) The content you submit is orginal and has not previously been published (unless you specifically advise us on the contrary); (c) You haven't previously licensed the use of the content you submit; (d) So far as you are aware, the content submitted will not infringe any third-party rights, be defamatory or in any way illegal.

Startupmagazine.co.ke October 2018

7

FRESH.INSPIRING.ANALYTICAL

Editor’s Pen

Economic meltdown is here Last month, the fuel prices were hiked with a whopping sh 20 plus despite resistance from the parliamentary elects. As a result every motorist and common mwanachi who uses public means is crying for our beloved country on the face of this frustration.

The inflation on basic commodities has shot with the increased fuel and slowly but with certainty, we are starting to experience the impact of economic meltdown. It is more like the great depression era slowly replicating and unfolding itself before our eyes. Worse still is the economically unfeasible borrowing of money from the alleged superpowers.

It is barely a month after His Excellency was in China with many Africa heads excited about the 60 billion dollars aid that is sure geared to cripple our econ-

omy. It is an unfortunate time being a Kenyan and with the corruption scandals and unwise decision that hurts the poorest of its citizen, perhaps entrepreneurship is the only way to salvage our dwindling economy.

As you enjoy this October edition, we wish you a good reading! Our hope is that successful entrepreneurial stories featured will ignite your passion to make a difference in your small ways!

Enjoy your read!

Adisa Hudson

Stima Sacco is proud to serve the people of Embu. Join a fast growing deposit-taking sacco, committed to providing you with the faciities you need to secure your financial freedom. Our new Embu branch is located at Pearl Centre next to Outspan Hospital, off the Embu-Meru Road.

Call us on 0703 024 024 or email info@stima-sacco.com for more information.

October 2018 Startupmagazine.co.ke

8

StartUp Stories

Letters to the editor “I wish we could go into every person’s home and make sure that the kids have a really safe environment and an opportunity to have food every day, but we can’t”

Wawira Njiru, Founder of Food 4 Education.

When Wawira Njiru left Kenya to study nutritional sciences in Australia in 2010, she knew she eventually wanted to bring her skills back home. In her town of Ruiru, about three kilometers from Nairobi, life seemed to be getting harder for the average family. Rapid urbanization, along with a population surge, meant that more people were working in factories and living in slums, with no land and little access to food. This motivated her to found Food 4 Education, an organization that feeds close to 1200 school going children in Ruiru every day. The firm source fresh food directly from farmers and use a central kitchen model to deliver nutritious, heavily subsidised meals to students in urban public primary schools. To cover the cost of subsidies, the firm uses profits from its social enterprise food business that offers healthy, affordable and local food to corporates and private institutions.

“Everyone should understand their true value”

Samchi doing great I was pleased to read a copy of your past edition where you featured Samchi Credit and its revolutionary financial model. I have been financed before by the firm and it was great to read about their plans for the future and how they are planning to improve customer experience.

Musa Fredrick Machakos

Kudos StartUp I must recommend the team at StartUp Magazine for the good job they are doing. The stories are great and the reviews too. It is insightful to read entrepreneurial stories and I highly recommend them for anyone looking to run a business or already in business.

J Ochieng’ Entrepreneur

Camp Ndunda

Charles Mwangi, Director of Engineering at American Motor Company Tesla.

He is an alumnus of Strathmore School where he studied from 1994-1997. Thereafter, he pursued his a Bachelor of Science at the Jomo Kenyatta University of Agriculture and Technology and later moved to the United States where he acquired a graduate degree in Mechanical and Manufacturing Engineering at the Tennessee State University.

Tesla, Inc. (formerly Tesla Motors) was founded in 2003 and specializes in electric cars, lithium-ion battery energy storage, and residential photovoltaic panels (through the subsidiary company SolarCity).

“Private equity and venture capital firms injected an estimated Sh43.57 billion ($430 million) into the Kenyan economy in 2017.”

Esther Ndeti, Executive Director at EAVCA Esther Ndeti is an Executive Director at the East Africa Private Equity and Venture Capital Association (EAVCA) and has experience in program management, fundraising & business development as well as extensive networks in the entrepreneurship and investment ecosystem in East Africa. Prior to joining EAVCA, Esther worked for the Aspen Network of Development Entrepreneurs (ANDE) where she coordinated ANDE’s activities in the region. Ms. Ndeti has a BSc in Mechanical Engineering from the University of Nairobi.

Startupmagazine.co.ke October 2018

Your travelogues are just what I always look for in your magazine. I am an outgoing and adventurous person and I always look for something that describes the beautiful travel destinations in our country. Adisa Hudson is really doing a great job in showcasing this pieces and encouraging us to explore Kenya.

Sherry Nairobi

HAVE YOUR SAY ONLINE The editor welcomes reader’s opinions but deserves the right to edit them for publication. Please email to info@startupmagazine. co.ke More comments are published online about news stories published on startupmagazine.co.ke

StartUp Magazine EA @Startupmagazine_EA

FRESH.INSPIRING.ANALYTICAL

October 2018 Startupmagazine.co.ke

10

News Sheltertech accelerator comes to Kenya offering up to USD 50,000 for startups improving housing

Pangea Accelerator, a platform connecting African startups with international investment & expertise, in partnership with Strathmore University’s @iBizAfrica, BDO and Habitat for Humanity will see the accelerator link up Kenyan start-ups from the housing

industry with mentorship, investment and global networks to help them scale.

and submitted via Pangea’s website: pangeaa.com.

According to Pangea’s COO Jonas Tesfu, the startup ecosystem continent-wide, if given the right tools and means to invest is as vibrant as any other industry across the globe. Jonas notes that Africa still remains very attractive as a new startup frontier.

“Africans and non-Africans alike are looking to be part of its rapid development and are seeking ways to make this happen.”

“Increasingly, entrepreneurs and innovators are looking for more structured and comprehensive platforms to start and scale their businesses. With the combination of Pangea’s global startup experience, investor networks and expertise, coupled with @iBizAfrica’s strong startup entrepreneurship, technology and research background, Pangea is set to provide the most robust skills, growth and funding programme” shared Bernard Chiira the incubator Manger at @iBizAfrica, Strathmore University.

The ShelterTech Accelerator in Kenya will run from December 10 2018 to May 10 2019 (with workshops & mentorship held once a week) and is looking to support startups in waste management, renewable energy in homes, housing & construction and water & sanitation. The program is supported by the Hilti Foundation and IKEA Foundation and has been run in Mexico and India, thereby providing participating startups with a chance to leverage on global expertise.

Pangea’s Call for Applications opens until the 21st of October 2018. Application forms may be accessed

Young People are More Optimistic About Future Than Older Generations-Poll Goalkeepers Global Youth Poll reinforces role of youth in advancing the Global Goals The Bill & Melinda Gates Foundation today announced the results of its Goalkeepers Global Youth Poll, an opinion poll conducted by Ipsos Public Affairs ahead of the foundation’s second annual Goalkeepers event in New York this week. The poll surveyed adults and young people in 15 countries, asking for their outlook on their personal lives, challenges for their communities, and the direction of their countries. Data were collected from more than 40,000 respondents ages 12 and older in higher-income countries (Australia, France, Germany, Great Britain, Sweden, the United States, and Saudi Arabia) and lower- and middle-income countries (Brazil, China, India, Indonesia, Kenya, Mexico, Nigeria, and Russia), based on World Bank rankings.

The poll found that young people are more optimistic about their future, the future of their country, and the future of the world than older people. Levels of optimism are highest in lower- and middle-in-

Startupmagazine.co.ke October 2018

come countries, with young people (ages 12-24) in these countries being the most optimistic group across all measures. The poll also found that young people in these countries are more likely to believe they can affect the way their countries are governed and that their generation will have a more positive impact on the world than their parents’ generation.

In line with this year’s Goalkeepers Data Report released last week and co-authored and edited by Bill and Melinda Gates, the poll results suggest that decades of stunning progress in the fight against poverty and disease is being felt in lower- and middle-income countries. Since 2000, the number of people living in extreme poverty has declined by more than 1 billion. However, rapid population growth in the poorest countries, particularly in sub-Saharan Africa, is putting future progress at risk. This year’s report makes the case that investing in young people, particularly in their health and education, will be critical to unlocking productivity and innovation, and continuing to drive progress.

11

FRESH.INSPIRING.ANALYTICAL

News Remittance income will drive economic growth for Africa

PG. 14

PAYMENT GATE How PAYMENT GATE helps businesses generate digital receipts

Despite an economic slowdown, most African countries are reported to have a positive economic outlook. This is according to ICAEW’s (the institute of Chartered Accountants in England and Wales) latest report. In Economic Insight: Africa Q3 2018 launched today, the accountancy body.

The report, commissioned by ICAEW and produced by partner and forecaster Oxford Economics, provides a snapshot of the region’s economic performance. The regions include; East Africa, West and Central Africa, Franc Zone, Northern Africa, Southern Africa.

According to the report, East Africa continues to be the continent’s best performing region with a GDP forecast at 6.3%. This positive outlook is due to the region’s economic diversification and investment-driven growth. Ethiopia remains the region’s powerhouse, with growth forecast at 8.1%, thanks to the recent reforms under new prime minister Abiy Ahmed.

In Central and West Africa, growth is forecast at 2.9%. The constrained growth in the region is due to subdued non-oil economic activity by Nigeria – the region’s powerhouse. Ghana by contrast is the best performing country in the region with a forecast growth of 6.5%.

Michael Armstrong, Regional Director, ICAEW Middle East, Africa and South Asia said: “Despite the recent growth slump; all regions in Africa are projected to report a positive economic outlook, with remittance income expected to be a key economic booster in the coming months.”

Growth in the franc zone is forecast at 4.6%, largely driven by a boost of 7.4% in the region’s biggest economy, Ivory Coast, where investment is driving rapid expansion.

North Africa’s Egypt is forecast at 5.3%, as a result of structural and policy reforms, which have boosted manufacturing and investment. The county’s tourism sector has also continued to recover. Likewise,

Libya is expected to record a growth of 16.5%, owing to posted improvements in oil production after the civil conflict.

Southern Africa has been affected by continued slow growth by the regional heavyweight South Africa, forecast at 1.5%. Angola, the region’s other economic leader, has the same forecast of 1.5%.

Strong growth in both Botswana and Zambia is said to have little effect on the region’s overall performance.

Remittance income was emphasized in the report as a major economic factor for most African countries.

Nigeria was the biggest receiver of remittances on the continent. The West African economic powerhouse received 29% ($ 22bn) of total remittances flowing to the continent in 2017, mostly from the gulf, the US and United Kingdom.

Egypt was the second biggest receiver of remittances on the continent with $20 billion of remittances. One of the countries highlighted where remittance flows continues to play an important role in terms of external accounts is Ghana. According to the world bank, remittance inflows amounted to $2.5bn in 2014: equal to roughly 18.6% of total exports that year. However, in 2017 the remittance inflows subsequently declined to $2.2bn equivalent to 15.8% of exports.

PG. 16

INTERVIEW Disruptive innovation is transforming Africa’s economic potential, creating new target markets and unprecedented consumer choice

PG. 18

WOMAN OF POWER Driving environmental awareness in MAURITANIA

Uganda’s economic growth was reported to have recovered markedly last year. The country is expected to post a surplus of about 5.6% of GDP this year, supported by project aid and remittances inflows.

The report notes that despite remittances playing an important role in African economies, policies should focus on reducing the cost of remitting funds.

October 2018 Startupmagazine.co.ke

10

REAL ESTATE

Why Africa’s Tallest Building will redefine NAIROBI

Startupmagazine.co.ke October 2018

13

J

Kenya’s status as East Africa’s powerhouse is being reinforced by the launch of the Pinnacle real estate projects that will take the country’s wow-factor to the next level when completed.

An exquisite mixed-use development which will be standing over 300 metres above ground in Nairobi’s Upper Hill area, The Pinnacle will be the tallest building in Africa – that will even surpass the continent’s current leader – Johannesburg’s 223-meter Carlton Centre when completed in the year 2021.

It will be the ultimate architectural achievement and will become the defining landmark not just for Nairobi, but for Kenya and the whole African continent.

Combining indulgent luxury with highend commerce and distinctive architectural design, the Pinnacle is an exquisite mixed-use development. Its two towers will offer stylish commercial offices and a five-star hotel, joined together at the base by a five-storey shopping mall and enter-

FRESH.INSPIRING.ANALYTICAL

tainment centre.

It will be an attractive development, combining indulgent luxury with high-end commerce and distinctive architectural design. The Pinnacle offers residents and guests a selection of spacious apartments, stylish commercial offices and a five-star hotel joined together at the base of both towers by a five- storey shopping mall and entertainment centre.

At a cost of USD 200 million, The Pinnacle – developed by Dubai-based firms Hass Petroleum and White Lotus Group, will have 11 floors of exclusive Class A Offices covering 75,000 square feet of gross lettable area; 46 floors of 210 luxury & residential apartments; and 257 luxury hotel rooms and large suites and a luxury Health Spa and an open-air pool at the Hilton Hotel.

It will also have a selection of stylish restaurants and bars, extensive banqueting and conference facilities, shopping mall and entertainment centre, and 1,000, 000 square feet of retail space including 17,000 square feet of family entertainment centre.

Green Building The Pinnacle has been awarded Gold LEED (Leadership in Energy and Environmental Design) certification.

The LEED rating system developed by the U.S. Green Building Council (USGBC) is the foremost program for buildings, homes and communities that are designed, constructed, maintained and operated for improved environmental and human health performance.

This mean that The Pinnacle is incorporating various design and construction aspects to meet LEED qualifications such water Efficiency and recycling, provisions for use of renewable energy, adoption of an open-air atrium to allow daylight to pour into all units, reducing dependence for artificial lighting, incorporating new thermally efficient window units, building and roof insulation, and efficient use and recycling of building materials & resources among other measures.

When completed in 2021, The Pinnacle will definitely place Nairobi in the leagues of some renowned international cities like Dubai, Johannesburg and reinforce its position as the region’s commercial and tourism hub.

October 2018 Startupmagazine.co.ke

14

TECHIE

How PAYMENT GATE helps businesses generate digital receipts

Jasper Ochieng’

Jasper Ochieng’ is the founder and MD of KIBO CAPITAL GROUP LTD which runs payment gate

J

University of Nairobi and currently pursuing his MBA in Finance and Sustainability.

asper Ochieng’s unique experience as a branch manager with both local and international banks led to the development of payment gate platform.

He started as a sales representative with Barclays Bank in 2006 before quickly climbing up the ladder to hold managerial positions with Barclays Bank, Standard Chartered Bank and Chase Bank (Currently SBM Bank).

Ochieng’ holds Bsc in Mathematics from

A career in finance exposed him to a lot of

Startupmagazine.co.ke October 2018

invaluable experiences, he says.

With in-depth knowledge about the payment ecosystems in the region, Mr. Ochieng’ is keen to exploit emerging opportunities around the areas of mobile payment, retail sales Receipting and fintech as disruptors in the financial landscape.

“I interacted with a lot of corporates and stakeholders and realized that many pay-

15 ment platforms were issuing paper receipts which were expensive and harmful to the environment,” recalls Mr. Ochieng’.

The entrepreneur says the experience ignited an idea to develop PaymentGate platform- one which helps businesses improve users’ experiences revolving around Payments Records and remain relevant in a digital world.

FRESH.INSPIRING.ANALYTICAL

A DIGITAL RECEIPT

bile app, a message is generated as a text which comes with a link to the receipt.

You can download, save electronically, print (ONLY WHEN NECESSARY), share via text, email or social media and perform many other functions.

It can also be customized to fit various functionalities.

What does payment gate do?

“With our platform you can communicate with your customers as you issue instant digitally branded payment receipts for each payment executed. You can also monitor their experiences digitally,” says the executive.

The receipt can further be branded to promote a particular service or product.

He further refined it to keep clients information private, invoking a sense of security and confidentiality as a caring partner in their businesses.

“Our technology can be integrated in any payment or receipting platform from mobile money to ecommerce, supermarkets POS Systems, or banking platforms.

It also has the ability to generate receipt for any value of a transaction from as low as Kshs 1 to a limitless amount,” explains Mr. Ochieng’.

While the digital receipts are eco-friendly, helping keep the environment clean, e-payment platforms have faced a lot of concern over their ability to keep their system secure from hackers and other cyber related frauds.

“We have sufficient security protocols across our system to make it secure. For instance we have multiple security layers in our traffic and transport ecosystems which can automatically flag down unwarranted access to the systems,” he notes.

The technology also has high integrity and only executes receipts for payment received. “There is no way it can generate a receipt for a payment that was never executed.”

He acknowledges that his dreams of supporting a sustainable payment ecosystem have been boosted by the developments in mobile money and increasing needs in banking and financial inclusion. “You can now send money and pay for bills at your convenience,” he says.

Payments via mobile money generate text messages which can be deleted or altered.

So he argues, how can you provide proof of payments that you made months or years ago?

User’s experiences can also be monitored via the platforms through customized questions which a customer can answer voluntarily.

The digital receipts come with QR codes which can be scanned and verified by anyone anywhere. The inbuilt QR codes help curb fraud that is prone with physical receipts.

According to him, It is quite a hassle showing everyone your mobile money or bank statements to prove that you made a payment months back or many years ago.

Payment gate makes all these experiences easier and extremely convenient.

How? “Mobile money or bank statements may show a history of many unrelated transactions which one may not necessarily want to show. But with our receipts, you can show a particular transaction or payment event with ease,” he explains.

The platform has been useful across many sectors with many firms embracing it including Microfinance banks, Username Investment and PesaLink- an interbank money transfer platform by Kenya Bankers Association.

Mr Ochieng’ is optimistic to use the technology to solve many operational and environmental challenges faced by businesses across the region.

Payment Gate is part of a larger Kibo Capital Group Limited which is a regional fintech leader in supporting the creation of capital and financing solutions for African entrepreneurs.

The digital receipts come with QR codes which can be scanned and verified by anyone anywhere. This offers universal verifiability which wasn’t the case previously.

The inbuilt QR codes help curb fraud that is prone with physical receipts.

Once you make a payment through a moOctober 2018 Startupmagazine.co.ke

Interview

Eddie Ndichu, MD, Okash

Disruptive innovation is transforming Africa’s economic potential, creating new target markets and unprecedented consumer choice Technological disruption is transforming markets and societies across Africa in ways that wouldn’t have been possible even ten years ago. In Kenya, FinTech is contributing to creating a more inclusive financing ecosystem, increasing the availability of credit and methods of payments.

In the following interview with StartUp Magazine, Eddie Ndichu, the MD of Okash talks how the disruptive FinTech and how it is providing opportunities for those who are financially excluded to utilize financial products and services like never before.

Startupmagazine.co.ke October 2018

What does Okash do?

OKash is a mobile app that provides users with short-term loans when they need them.

Tell us about Okash initial objective?

Our goal is to satisfy the economic needs of people who want to access credit/loans for their everyday expenses with a fast and

17 secure app that is easy to set up in their mobile phones.

How has been the experience since starting out?

The reception of OKash in Kenya has been successful. Since its launch in March 2018, we have built a user base of half a million people in the country, which keeps growing every day. We have loaned out money to over 100K people with a value of KES 300M with most people borrowing at a speed of 14/15 times a month.

Whom do you target with your services?

We are making it possible for individuals who dream to start small businesses and just need just a little enough capital to start up. We are also making everyday life expenses easier for people who need money for their day to day needs but are not able to meet them at that particular time OKash steps in to help them solve their challenges.

Why should customers use your Okash?

Okash guarantees loans with the lowest interest rate in the market of 1% per day. It also is the most secure loan app in

FRESH.INSPIRING.ANALYTICAL

Kenya as it features a new face recognition system, which reduces the chances of identity theft.

How have you leveraged on Africa’s mobile penetration and digital inclusion at Okash?

Mobile Penetration has enabled OKash in contributing to create a more inclusive financing ecosystem in Kenya, particularly in regard to increasing the availability of credit and methods of payments.

FinTechs are providing opportunities for those who are financially excluded to utilise financial products and services like never before.

What are the emerging trends in this space and their impacts on your operations?

Over 85 percent of the adult population in Kenya utilise mobile financial services such as M-Pesa to regularly pay for products and amenities, such as household bills or school fees. The acceptance of digital payments and mobile money has impacted our operations and challenged us to innovate products that are interlinked with their day to day trends and activities.

Have you faced challenges? Possible interventions?

As any other company, we have faced multiple challenges, which we have also seen as opportunities. Kenya is a fast moving economy and it is probably the pioneer in mobile banking in the world. Even Though there is a continuous demand of more FinTech services, we keep ourselves on top of the game to offer the best product through our technology.

Any future prospects?

We are looking into venturing purpose lending. We are currently building lending products that are attached to daily purposes, like health products, energy and agriculture. We are exploring innovative ways of providing high-end technology products to the end users.

Other pertinent issues?

The predominant growth barriers facing FinTech enterprises are insufficient access to data and information; regulatory challenges; a lack of credit and investment; and the size and maturity of the Kenyan market.

October 2018 Startupmagazine.co.ke

18

WOMAN OF POWER

Driving environmental awareness in MAURITANIA Proving small initiatives can have great impact

“

When I launched Selfie Mbalite, I did not expect such quick reactions. Everyone was taking selfies near waste on the national territory and posted them on Facebook with the Hashtag #SelfieMbalite

”

Master’s degree in ‘Territorial management of the effects of climate change and environmental risks’ at Sup Management University in Nouakchott.

and have started to review their strategies.

Bilal also went to be an AU-EU Youth Ambassador. “Being part of the AU-EU Youth Plug-In initiative is one of the most beautiful things that happened to me and is the result of my civic commitment,” says Bilal. This lead to her being chosen by the African Union Commission to represent and deliver the speech on behalf of the African Youth at the “Women in Power” Conference on the sidelines of the 31st African Union Summit.

She decided she wanted to make herself useful after completing her studies and integrated into the NOG ‘Rim Youth Climate Movement’ fighting climate change.

Even though she is no longer a member, she is grateful for her learnings.

On being chosen to be part of the Obama Foundation Leaders: Africa programme, Bilal said that it was more than a pride and honour. She added that “President Obama is an inspiration to the whole world.”

“When I launched Selfie Mbalite, I did not expect such quick reactions. Everyone was taking selfies near waste on the national territory and posted them on Facebook with the Hashtag #SelfieMbalite,” says Bilal. Thanks to this initiative, authorities in Mauritania have reduced the contracts of companies that manage waste

Bilal sees herself as a business leader in the environmental sector in the future.

She’s made a promise after her pare in the Obama Foundation Leaders: Africa programme to pass on her knowledge and skills to the young people of her country through a mentorship program that she will launch shortly.

Aminetou Bilal

Wanting to raise awareness about the unhealthy and unsanitary conditions in her home country, now 26-year-old Aminetou Bilal launched the “Selfie Mbalite” campaign in February 2017. She was inspired by the “Selfie Déchets” campaign run by blogger Fatoumata Cherif in Conakry, Guinea.

Bilal is the president of Selfie Mbalite, an NGO that focuses on awareness campaigns against unsanitary conditions and promotes ecological development in Mauritania. She is also part of the first class of 200 Obama Foundation Leaders: Africa programme.

Born and raised in Mauritania, Bilal completed her Bachelor’s degree in Geosciences and is currently busy with her Startupmagazine.co.ke October 2018

19

FRESH.INSPIRING.ANALYTICAL

October 2018 Startupmagazine.co.ke

20

MY HUSTLE

How RATEMYSERVICE.CO.KE is disrupting customer experience through tech

Akshay Shah Director, Custometrix Ltd

Startupmagazine.co.ke October 2018

21

C ustomers are more demanding than ever.

They have more power than they used to.

They are smarter and have higher expectations than before. Well…technology has helped shaped their expectations but it is one part of the puzzle and not the magic bullet. Companies that do want to provide great experiences to their customers have to embrace tech but also need to have other things in check. People, processes, leadership and culture should work efficiently,” says Akshay Shah, the director and founding partner at Custometrix Limited.

Custometrix developed a platform called ratemyservice.co.ke which helps companies deliver great experiences to their customers. According to Mr. Shah, a lot of companies typically struggle with two things: One, they find it difficult to collect data from the customer.

FRESH.INSPIRING.ANALYTICAL

“Our platform has been helping firms understand their customers better and improve their services,” he notes.

For a number of companies, a large part of his is having actual data to make decisions on. “Data gives insights on something they were unaware of or might have been ignored. With the data analytics, they can improve communications with their customers, increase efficiency and deliver of service and settle a resolution among others.”

Prior to setting up the firm, Mr. Shah worked as a management consultant across a number of markets for over 15 years. He has been skilful in primarily helping companies become more customer centric and operate efficiently.

“My first taste of entrepreneurship was with one of the consulting firms I worked at and we were trying to get a new capability off the ground until then I was largely happy to pursue a corporate career.

And I think that is what made me consider there are more options than just climbing a corporate ladder.”

Despite the current hype about AI and

bots, Mr. Shah casts his opinions about easier wins for companies that they need to tackle first. “Make sure your services are mobile first, use tech to enhance processes, use data better to understand customers among others.”

“As an example, a bank could look at how they could make their account opening and loan processing services quicker (you can open a bank account with FNB Bank in South Africa with a selfie, by the way!), insurance companies could look at how can they be more transparent and communicate better with their customers using digital during the claims process.”

Going forward, communication channels with customers will always increase and they represent opportunities to collect data. So the firm is looking at how it can leverage on the various communication means.

“Our focus will be on making it easy for brands to collect data and draw meaning from that. As a result, our product evolution will largely be guided by what our customers want from us,” concludes the executive.

Two, they find it difficult to draw meaningful insights from data they collect.

Through ratemyservice.co.ke, companies are able to collect feedback from their customers as well as understand what customers feel about their brand. These insights act as powerful tools for companies to improve their products and services.

On the other hand, the platform helps consumers make better purchasing decisions by comparing one service provider to another. So if you are looking to open a bank account, take our insurance policy or buy a household product, you can search for the company and review feedback from real customers. It gives more insights about a product usage or service helping one make informed decisions.

Mr. Shah says their customers are companies in several sectors such as banking, insurance, telecom, automotive, transport and energy among others.

“Data gives insights on something they were unaware of or might have been ignored.

With the data analytics, they can improve communications with their customers, increase efficiency and deliver of service and settle a resolution among others.”

October 2018 Startupmagazine.co.ke

22

Cover Story

ENTRENEURSHIP LESSONS FROM ETHIOPIA Globally, much attention is currently given to entrepreneurship development and its role in unlocking the economic potential of countries in the world. In Africa, governments are implementing successive development plans and sectoral strategies to transform economies and create jobs with a handful of success.

Ethiopia has created dynamic entrepreneurs who are willing to take risks and generated employment opportunities for its citizen while contributing to overall economic development of the country.

Startupmagazine.co.ke October 2018

23

FRESH.INSPIRING.ANALYTICAL

ABBAI SCHULZE FOUNDER ZAAF COLLECTIONS

Taking Ethiopia’s luxury leather craft heritage to the world Abai Schulze is the founder of ZAAF-a collection of premium Ethiopian leather products and accessories.

‘‘

When I was a child residing in an orphanage in Addis Ababa I saw being a teacher as very significant (which it is).

I had no concept of business other than the fact that I was good at braiding hair,so people would ask me and I would make a

bit of bucks,” opens up Abai Shulze, the founder of ZAAF Collections.

She went to America at the age of 11, enrolled in their education system and later expanded her horizons exponentially.

October 2018 Startupmagazine.co.ke

24

Cover Story She became a global citizen with bigger perspective of making a difference in the world.

Anchored on the values of being the best in her craft, she started doing modest clothing and fashion design while in school. After sometime, what started as a hobby quickly transformed into dreams of making a creative business in Ethiopia that would create jobs and produce exceptional products.

“I worked hard in university on an economics degree- my senior thesis examined Ethiopian trade and development. I also kept up my fine arts studies to support my creative skills. After a year of normal employment after graduating I went out on my own to create ZAAF, and in the midst of all the hard work and challenges I never had the bandwidth to reflect on whether I was forging any type of name or reputation- my passion was designing and producing original beautiful pieces that leverage the richness of Ethiopian materials and culture, while setting high standards and growing capacity for our skilled artisans,” she recalls.

ZAAF means “tree” in Amharic. The brand is drawn from timeless Ethiopian roots with ambitions to conquer the international market.

The firm employs top artisan who craft premium leather handbags and accessories. “Our collections start with designwith seeing how we can combine wonderful Ethiopian leathers with hand loomed accents, cow horn, and other natural materials,” shares Abai.

ZAAF designs are intended to be beautiful and highly functional. The artisans works around the clock to produce pieces of impeccable quality. “We are deeply committed to raise our standard and perception of Ethiopia and produces of top luxury leather products,” she adds.

“Quality and perception are very importStartupmagazine.co.ke October 2018

Top/Down-Models showcasing ZAAF Luxury leather bags

25 ant for us. Why? We also get feedback from our clients and infuse their recommendations in our productions so as to make relevant products and designs that fit the market needs.”

Target market ZAAF products are available worldwide.

The firm targets people who love beautiful original pieces, who appreciate the synthesis of a deep cultural heritage and modern creative functionality in a product. “Our customers are largely professionals, many in the earlier stages of their careers. They are attracted by something high end and original that isn’t in the usual name brand luxury wares,” says Abai.

While ZAAF products draws from timeless Ethiopian roots, it is also about identifying with being part of a global community of people who work hard, who want make a difference, and who enjoy life, especially the friends and family they may have all over the world. Thus, their luxury leather products are very attractive to the international market. “They are beautiful, functional and make an original lifestyle statement.”

ZAAF boutique will be opening in the Washington DC area this year. While ZAAF has been sold online and in local boutiques, this will be the first branded venue outside of Addis. “It will not be your normal store- it will be an experience. There will be special events to mark the launch, other gifted designers from the African continent will be featured, and some very unique options for customers are in the works. DC is a very appropriate venue given its international character,” reveals Abai.

“

I love to see our team members come into their own, to discover that they have so much more to offer than they thought. I love doing team-building exercises that draws the best out of everyone and break down the unfortunate paradigms regarding labor and management that endures especially in developing countries.”

”

spirations taking flight into the modern world,” she explains further.

Abai loves to build people and see them flourish in their careers, “. I love to see our team members come into their own, to discover that they have so much more to offer than they thought. I love doing team-building exercises that draws the best out of everyone and break down the unfortunate paradigms regarding labor and management that endures especially in developing countries.”

According to her, capacity building is not just about seeing technical skills increase and expand- it is about creating workplaces that are highly productive and satisfying to all involved, that affirms their individual worth and gives them the sense of being part of something important.

FRESH.INSPIRING.ANALYTICAL

A day at work “When what you do encompasses people and time zones all over the world, “day” may be a misnomer for a workday. When I am in Addis, I get up very early and do some follow-ups with clients outside of Ethiopia. Then I get to the office and my day involves almost anything including traveling to various places to select leather, dealing with bureaucratic issues, interfacing with team members, working on new designs, planning special ZAAF events in various parts of the world, working on marketing among others,” she explains.

After work in the office, she unwinds by catching up with friends in a social joint.

It is important to build relations as some of her best ideas came out of downtime conversing and relaxing with friends and family. “I work and play in equal measure,” She sometimes works till late in the night at home when need be.

Her success has been anchored around a warm and supportive family. Her Amharic parents and siblings encourage her with wise words.

She encourages young people to work hard without relenting to achieve their dreams.

When have you been most satisfied in your life?

“When someone expresses their enthusiasm and joy over something we have been able to offer. They see a wonderful piece that they look forward to making part of their lifestyle and sharing with friends.

I see the hard work, the skilled artisans, the jobs that piece has helped provide. I see the historical cultural roots and in-

Abai Schulze (center seated) with her team October 2018 Startupmagazine.co.ke

26

COVER STORY

Succeeding as an African entrepreneur, an interview with ADDIS ALEMAYEHOU

a

ddis Alemayehou is the kind of guy that sees opportunities around him and pounce on them. He grew up in Nairobi and moved to Ethiopia at the age of 18 years. His youngest venture was growing veggies at the back of their family house and selling back to his mom. Years later, he would borrow his father’s car and chauffeur his friends around Nairobi for a fee. Addis now runs 251 Communications, a PR and communications firm based in Ethiopia and with several media and production stations under his watch.

In the following interview with StartUp Magazine, he delves into his first encounter with entrepreneurship and encouragements on how one can succeed as an entrepreneur in East Africa.

Startupmagazine.co.ke October 2018

Q: How did you venture into entrepreneurship?

use to listen to music that I lost and realized that there was nothing on radio that I could listen to.

My Journey into where I am now started when came back home 18 years ago to visit my family, I saw the immense opportunity of my country, the things I can contribute to the growth and development of my country. That was the binging my career in Ethiopia.

Doing a bit of research, I realized that there were thousands of people in a similar dilemma that lived in the city but did not speak the local langue and so were left out. That was the start of my first venture.

A good business is always one that finds a need in society and fills that void for a fee.

Ethiopia at that time was just coming out of a very devastating war with Eretria and the economy was in a really bad shape but I only saw the upside in that you had close to 90 million people where the average age was around 18. The need for goods and services was immense; one just had to figure out how to get moving.

My first real venture was starting the 1st English Speaking FM Radio station in Addis Ababa. It came to me by accident in the sense that I had an IPOD that I

Q: Growing up did you ever envision you will venture into entrepreneurship?

I grew up in Nairobi, Kenya for most of young life, which I believe gave me the ability to recognize opportunities. I always had the instinct and ability for business. I did not know it when I was a kid but I grew in to being one.

When I was 14, Chris Kirubi invited my family over for dinner at his house and I

FRESH.INSPIRING.ANALYTICAL

remember him speaking about how he got into business and seeing how he lived and his confidence, that was the first time that I thought of being an entrepreneur. Unfortunately, in Ethiopian families, no one encouraged you to go into business, you were always pushed into a safe profession (Engineer, Doctor) were the kind of professions that family pushed you to pursue so you really had to believe in yourself and your vision to go out and seek to start your own business.

I find this is still the case in Ethiopia and in most African families, business is still seen as a major risk for people to get into.

Q: Tell us a bit about your professional background and 251 Communications?

251 communications was established six years back as I saw a gap in the marketing space here in Ethiopia. We established the company just as some of the major breweries were coming into the country for the first time. Before 251 I was managing a USAID Trade project supporting Ethiopian firms export to the US under AGOA. The USAID post gave me an early lesson into how the country worked and the key challenges faced by the local private sector.

Having not lived in Ethiopia since the age of 8, I was only starting to get gist of how things work in the country. 251 Started with Heineken as our first client where they took a chance in us. I told them, “We’re only a start up but if you give us a chance, we’ll prove to you that we can deliver” and lucky for us the management at that time did.

Once we started with a major brand like Heineken, it became easier to convince others to work with us and we grew the company from a staff of 3 to over 50 in a number of years and expanded into production and media as well as venture into South Africa in PR as well as Communications.

Q: What has had the biggest impact in your career?

My career has been impacted by people around me, friends, family, colleagues, the ordinary Joe, meeting them, talking to them, and learning from them. My failures have also had the most impact in my life and my career since without failing I would not be able to learn.

No business comes with a blue print on how to make it and thus every challenge that you face is a lesson leant. The one thing that I tell my employees is that I expect them to make mistakes, if they don’t make mistakes then they are not really taking chances and pushing themselves.

Just don’t make the same mistake twice is my mantra.

Q: Are entrepreneurs born or made?

I would say entrepreneurs are born. Entrepreneurs are forged through hardships and through the wanting of a better life or a better world. Entrepreneurs get their fuel from the people around them. An entrepreneur has to be willing to work hard, learn and develop to succeed.

He must be an optimist, sees the light where everyone else sees darkness.

Q: In your own opinion, what traits define a successful entrepreneur?

The passion and commitment to see things through the end should stand out.

He/she should be a person who is willing to learn from others, risk taker, passionate and willing to travel the less trodden path.

I know a lot of people who have amazing ideas but only a few will take the needed steps and sacrifices to see that idea to fruition. A life of an entrepreneur is not for the fainted heart. Not everyone can handle the stress of not knowing and the pain that failing brings.

Q: How is your day at work life?

I’m usually in the office after dropping my kids off to school since that is usually the only time I have with them in the day. It starts with a brief meeting with my management team to go over the key delivera-

bles for the day and any major issues.

The rest of my day is spent at various meetings handling and or giving direction on different aspects of the business.

At the moment, I have over six new start up’s that I’m overseeing at various stages of growth and thus most of my time is spent on strategy towards giving my team the tools and ideas to take our company to the next level.

Q: Do you have a work-life balance? If so, how do you achieve it?

Yes, i am a father of two kids. I live for my kids. I want to leave a better country, rather world, for them. But in trying to do so, I have always tried not to miss out on their life. So I try to split my day in to work, family and friends. My weekends are always been reserved for my children.

We only have one life to live and I don’t want to be that guy that is 80 years old with regrets of spending all his life working to the point of regretting and losing out on his time with family and friends. It is something that every entrepreneur will tell you, the biggest challenge we face is that balance of family/friends versus work Q: What piece of advice would you give to someone who wants to succeed as a business leader in Africa?

Don’t only work hard, work smart. Africa is the land of opportunities, if you have the commitment to do so then there is nothing that can hold you back. If I was to come back to this world, I would want to come back as an African since NO OTHER place on earth offers the opportunity and the dynamics that Africa offers.

It is our turn to shine and I really believe this generation of Africans is at the cusp of History on the continent. We have an amazing opportunity to do something remarkable for our continent.

October 2018 Startupmagazine.co.ke

28

CYBER SECURITY

How to prevent hacks using emails and networks

Jonathan Somen

Somen is the CEO of Eldama Technologies in Nairobi, Kenya.

Startupmagazine.co.ke October 2018

29 According to a 2018 report by Mimecast, the foremost email security firm, analysis of cyber attacks suggest that 91 percent of all cyber attacks start with an email

e

mails have become one of the most efficient forms of communication in the corporate world. It is so efficient, easy and affordable to register an email address.

With that convenience, there is a security threat posed and failing to seal that security loophole can have severe results especially for corporates. According to a 2017 Adobe email survey, we spend an average of 5.4 hours checking our emails.

We do it every day! Its rotary, obsessive, even doing the one-eyed check in the middle of the night. And that is part of the problem, we can't live without emailsthey link us to the outside world, connect us with business partners across the globe while also keeping us in touch with our dearest friends.

One would think that as much time we spend reading emails, some of which are sensitive and important, we would do a better job of protecting our precious, virtual cargo.

Yet, according to a 2018 report by Mimecast, the foremost email security firm, analysis of cyber attacks suggest that 91 percent of all cyber attacks start with an email; this is the number one place to start securing data and infrastructure. This can be especially devastating for businesses as financial losses; data breaches and reputational damage are just some of the fallout of viruses like Petya and WannaCry. WannaCry, which infiltrated numerous organisations, spread to 150 countries and is estimated to have cost the global economy US$8bn. Petya affected some of the world’s largest organisations, including Equifax, the credit monitoring and rating company in the U.S. This keeps happening because, while technical solutions are available to cur-

FRESH.INSPIRING.ANALYTICAL

tail phishing attacks and other attempted hacks, they are complex and opaque, which means most companies have challenges implementing them fully.

Given that most hacks into a company originate from an email, three key areas are the primary attack vectors of an attempted hack. The first one is through a website link. This is a very common and effective way of infiltrating even the most secure networks. In many cases, URLs hide malicious code, which uploads into a computer, allowing access to the hacker into a machine and eventually into the entire network. Most users who are hacked using a URL will receive and email with the URL embedded to the email. They will then click on the link without thinking of the potential threat. An effective software will first vet the original website link and validate it in real time. Once it establishes the webpage is safe, it will then redirect the user to the website. Essentially, acting as a bulletproof vest for your emails.

A majority of emails have an attachment.

This is another hotspot attack vector using emails. An attachment can contain an executable file that can quickly spread through the network. Incoming attachments are analysed to determine in real-time if the attachment is malicious.

Once that is verified, the attachment is then released and arrives with the email as usual. An efficient email system checks the attachments and will strip them out if it finds malicious code and will notify the user. In some cases, it can give the user an option to present the attachment as a PDF, which will be a safe file, and a user has the opportunity to request the original attachment.

The final and most vulnerable attack vector is through impersonation attacks. A majority of hacks are launched with the view of impersonating someone, whether they are a senior officer of the company or a well-known supplier. In some cases, they may create a fake domain that looks like the one that is expected. By going through various checks, Mimecast will pick out impersonation attacks and protect email users from being duped into carrying out tasks that are fraudulent.

PG. 34

INNOVATION Workforce experiences to match customer experiences: The next frontier for Telco success

PG. 36

TRAVEL & LEISURE Adisa Hudson on why you need to go hiking at Thomson Falls in Nyahururu

PG. 38

BOOK REVIEW A Counterintuitive Approach to Living a Good Life

October 2018 Startupmagazine.co.ke

30

DIGITAL ECONOMY

Blankets and wine for financial inclusion

By Edward Obiko and Peter Charagu

i Edward Obiko

Edward Obiko is a consultant working in Digital Financial Services domain at Microsave.

His work is focused around offering technical assistance and training to financial service providers in digital financial services and other areas.

Startupmagazine.co.ke October 2018

s registration for mobile accounts (wallets) really enough? What is an ideal measure of financial inclusion? The Alliance for Financial Inclusion (AFI) defines a core set of indicators for measuring financial inclusion. The first dimension is access to the services and products that formal financial institutions offer. Yet to achieve meaningful access, we have to solve the significant problems related tofloat and cash liquidity at the agent level – even in many mature digital financial services markets. Indeed this begs the question – are we serving wine to customers who need blankets?

Services such as KopoKopo add value to merchant services by providing them credit to expand their business. Meanwhile M-Kopa Solar and similar PAYGO providers connect thousands of households to affordable solar power through mobile money. While we acknowledge the accomplishments of such existing services, we are still far from getting the fundamentals right.

In this post, we highlight the need for digital financial service (DFS) providers to invest even more in adapting their products and services for this segment, even in the so-called mature digital economies.

The flood is still here A story is told about a great flood that was threatening to wipe out an entire island. On the There were many people on the island who were in danger. Some could swim, a few had small boats, but the majority were helpless. A ship that was passing by arrived to rescue the people. In desperation, a number of islanders started taking to the waters with makeshift equipment – the kind that they use to try to cross the Mediterranean from Africa to Europe. The ship got there on time. A significant number were ‘on-boarded’, albeit in bad shape. At least their lives were saved.

There were, however, a much bigger number of islanders yet to be saved, but people feared that the ship was already too overloaded. A great debate then began between the master of the ship and his handlers. Should they give some blankets and wine that the ship had in stock to the people on board who were cold and starving and then take them to safety? Or should they toss the merchandise overboard to reduce the weight, then save some more islanders in need? The flood in the story represents poverty and the ship represents basic access to products for financial inclusion. The blankets and wine are value-added digital products and the drowning islanders would be the financially excluded.

A middle-ground solution to this dilemma could be to toss the wine and give blankets to those on board while trying to save more people. I am not an expert

31 in nautical matters, but the message is straight-forward. If we wish to help people out of poverty through basic access to financial products, it would require us to ensure that this access can provide the products that deliver meaningful value and help low-income customers manage their lives better.

Access: The cost of cash-to-digital-tocash exchange Even though digital financial service providers offer digital wallets to many who would not otherwise have formal financial services, the micro-economies they operate in are largely cash-based. This means agents have to incur the cost of rebalancing frequently or deny service to their customers. Some agents have improvised and developed coping mechanisms like private social media groups to ensure that they have the money or float to serve customers. The onus is, however, on DFS

FRESH.INSPIRING.ANALYTICAL

providers to invest more in smart cash and float management solutions that help agents ensure that cash or float is always available, regardless of whether they are in urban or remote areas.

The second dimension of financial inclusion according to AFI’s core-set is sufficient ‘usage’ of these services. We may assess this by how often and how conveniently low-income users are able to receive, send, and spend their money.

This requires solving the cash conundrum to create an environment where even low-income customers can easily spend their money digitally.

Usage: Illusive digital ecosystems and merchant acceptance The digital ecosystem is not yet ubiquitous enough in many countries, including East African markets. This prevents users from using digital funds to pay for very much.

As a result, digital funds must be converted, often at significant expense, into cash to be used. This, in turn, discourages poor people – and particularly micro-entrepreneurs –from accepting digital value.

Ultimately, we need a largely digital ecosystem that allows even a street vendor to spend most of their money at other small and micro-businesses. Merchant services are typically designed for medium-sized enterprises that may already benefit from more advanced banking services at the back-end. Point-of-sale devices for merchant services such as Quickteller in Nigeria and 1-tap in Kenya typically exist either at a steep price-point or make overbearing demands on micro-businesses.

Safaricom’s One-tap partially addressed this by pricing their device at a relatively affordable KES 2,000 (USD 20).However, this is an exception and there are few

October 2018 Startupmagazine.co.ke

32 other examples in developing markets.

Some providers such as Equitel in Kenya and Paytm in India have offered free peer-to-peer transfers for customers.

Customers indeed use them tosend and accept micro-value payments. We recognise that such users who accept payments in this way may not meet relatively stringent requirements, such as tax compliance for small and micro-merchants. Considering that a significant proportion of micro-businesses in developing markets operate informally, merchant services designed for them must be both simple and affordable. These small merchants require a tailored and targeted design of products.

Targeted design of services may require more creative incentives but could graduate these merchants to become long-term business partners for providers.

Policy can also encourage digital payments by waiving charges for low-value transactions. Towards the end of 2017, the Government of India waived the merchant discount rate (MDR) for transaction values below INR2,000 (approximately USD30). The Government of India has been paying the banks on behalf of merchants and customers to encourage usage and acceptance of digital payment methods.

Quality: Products not tools The quality of digital financial products is AFI’s third dimension of financial inclusion and is, at best, still nascent for low-income consumers. Remember those who could swim and had small boats from the story of our drowning island? These are those who we colloquially refer to as ‘cuspers’ – a demographic that is just shy of the proverbial middle-income or thereabouts. We recognise that laudable efforts have unlocked more financial services for the cuspers and the middle income, who comprise the wine from our analogy. But wine is not the best sustenance for our islanders – in the same way that the digital products on offer are not the most appropriate.

The swarm of digital savings and credit products that have invaded developing markets offering easily accessible loans is a good example of this. Unfortunately, the Startupmagazine.co.ke October 2018

Figure 1: AFI's Core Set of Financial Inclusion Indicators

results bear striking resemblance to microfinance in its early years. As highlighted in MicroSave’s recent research in Kenya, the burgeoning digital credit products do not yet offer low-income borrowers real value. In contrast to the celebration of digital transactions and consumer loans, there is very little discussion around or evidence of digital micro-savings. Typically, users do not save for a future expense or aspirational investment. Instead, they only save to try to game digital credit systems to qualify for higher value loans.

There is a real need for appropriately designed tools to help the low-income segment manage their limited resources more effectively. As we can see from the growing array of fintech offerings, the digital revolution enables us to do this.

But it will require real focus as fintech is irrelevant for most people in the low-income segment, as providers have made little effort to tailor interfaces or use-cases for this market.

The vast majority of fintech providers develop solutions for the affluent and middle classes. This makes logical sense – these segments have the money and connectivity to use the solutions. Furthermore, fintech developers typically come from this background. They, therefore, understand the challenges this segment faces and thus the opportunities it provides. In contrast, when and if fintech developers focus on the low-income segments, they tend to

create solutions and then look for problems to solve in preference to understanding theneeds, aspirations, perceptions, and behaviour of the poor first.

Ultimately all that matters is impact – do not let them drown!

The fourth dimension of financial inclusion according to AFI is impact. Digital financial services have definitely had an impact on the lives of both users and non-users of such services, including through direct and indirect employment.

However, we are yet to solve a number of fundamental design issues with these products. A few exemplary outfits such as TwigaFoods have taken an ecosystem-based approach to understand the low-income segment and solve their financial and social inclusion issues. Real value, as Twiga has shown, can go beyond accessing formal financial accounts tosolve day-to-day problems like accessing markets to buy and sell products.

Such success needs to cascade further down the consumer income brackets. Improving access to financial products, usage of the services, and quality of those products and services for the lower-income segment requires significant investments from financial service providers, and especially fintechs, if they wish to look beyond offering traditional one-size-fits-all products.

C

M

Y

CM

MY

CY

CMY

K

FRESH.INSPIRING.ANALYTICAL

INVOICE FACTORING

Converts your unpaid invoices to cash in 24 hours Logbook Loans | Guarantees

0709 434 000 9th Floor, International House, Mama Ngina October Street.

2018 Startupmagazine.co.ke info@momentumcredit.co.ke, www.momentumcredit.co.ke

34

HUMAN CAPITAL

Workforce experiences to match customer experiences: The next frontier for Telco success

s Mariam Abdullahi

Telco Industry Lead at SAP Africa

ince GSM was first demonstrated in Cape Town in 1993 and the first GSM networks launched the next year, the telco industry has fundamentally transformed every country on the African continent.

As some of the largest employers, most admired – and valuable – brands, and most innovative companies on the continent, telcos have been synonymous with the rise and development of Africa’s economic development.

Two of the five largest public companies in Africa are telcos. In the latest Brand Africa Top 100 Most Admired Brands in Africa rankings, three telcos featured among some of the leading global brands, beating out the likes of Puma, Sony and BMW. South African telco MTN is that country’s most valuable brand, valued at nearly twice as much as its nearest competitor, another telco: Vodacom.

But even telcos are not immune to the disruptive forces of technology and a rapidly shifting workplace demographic that is forcing companies to adapt their business models and Human Capital Management approaches. For telcos to successfully transform to Digital Service Providers where they have to lead with new business models and innovation, their workforce engagement and talent attraction strategies, some hard questions need to be

Startupmagazine.co.ke October 2018

asked and some difficult changes made.

The five-generation modern workplace Today’s workplace is more diverse and dynamic than it has ever been in history. For telcos to succeed in the effective attraction, engagement and retention of these multiskilled digital workers, a fundamental rethink of organisational culture and human capital management is needed.

This is made all the more difficult by the fact that the modern workplace is home to no fewer than five distinct generations, namely: • The Silent Generation, born somewhere between 1920 and 1945, who are nearing retirement and typically struggle with adopting new technologies and prefer old-school forms of interoffice communication. While typically nearing the end of their careers due to their age, this generation is most likely found occupying key positions in boards, steering committees or as shareholders.

• The Baby Boomers, who now typically make up the upper echelons of organisational structures and who are driven by professional success and teamwork; • Generation X, born between 1960 and the early 1980s, who are adaptable and driven by results, and also more comfortable with using technology than their older peers; • Generation Y, or the so-called Millennials, who are the most prevalent group in most workplaces and who crave feedback,

35

purpose and opportunities to effect positive change; and • Generation Z, who are only now entering the workplace and who have grown up using the internet, social media and technology.

Due to Africa’s overwhelmingly youthful population, the greatest percentage of workers are from Generations X, Y and Z. However, since each is distinct and requires slightly (or vastly) different talent management strategies, telcos need to prioritise a process of workplace culture reengineering to ensure they can continue to access top talent.

Six workforce priorities for digital organisations In any organisation, the biggest factor determining whether change is either an opportunity or a threat is its people. The greater the changes facing the organisation, the more important it becomes to have the right people with the right skills and the right mindset. Successful organisation profit from change, instead of being overwhelmed by it. In a highly-competitive environment where digital skills are often a scarce resource, telcos need to ensure they offer the type of work environment that can inspire, attract and positively inspire top talent.

By focusing on six key priorities, telcos will be better positioned to engage and retain a motivated, productive and inspired workforce: 1. Ensuring you are building the right type of organisation – for now and the future The template for the organisation of the future remains unclear. Thanks to technology, entire industries and the concept of work itself are being reshaped in fundamental ways. The growing focus on the so-called contingent workforce, job automation, and virtual employment is pointing to the end of the full-time, onsite job. Telcos need to start asking some probing questions of themselves to get on the path toward building the right organisational structure for the future, including how to create a highly attractive employer

FRESH.INSPIRING.ANALYTICAL FRESH.INSPIRING.ANALYTICAL

brand, how to position the workforce to quickly scale up or down in response to changing business needs, and how to take advantage of intelligent technologies that reshape work processes and organisational models.

2.Creating a productive, compelling work environment In most organisations, people are the most expensive resource. Salary costs are impossible to generate positive ROI for the business unless employees have the resources needed to perform their jobs effectively. Telcos need to ensure they provide their workforce with access to tools, knowledge and technology that increases productivity and efficiency. Highly skilled workers in particular want positive work experiences with access to the latest technology tools. Mobile access, intuitive and engaging user design, social technology platforms and AI interfaces are the current preferred tools for high-skill workers, but this will change over time. Telcos need to keep abreast with the latest tools to ensure they can attract and retain top talent.

3. Engaging people around a clear purpose for the organisation Companies that exist solely for profit will fail to attract and engage the next generation of high-skilled digital workers.

Telcos need to prioritise the building of a purpose-driven company culture that engages employees around shared goals that constantly add new levels of value to the organisation. Doing this is no easy task, especially in a market as culturally and geographically diverse as the Africa continent. The latest talent management tools can effectively engage, motivate and support employees on a continuous basis, and give management a direct avenue to mobilising employees around changes in organisational strategy. Great care should also be taken to recognising employees for their contribution and acknowledging the value they bring to the organisation.

4. Making good talent management decisions Employee salaries, benefits and associated costs account for as much as 70% of a company’s total operating budget. It is critical that telcos have an accurate view of

whether that money is being spent wisely, and that staffing levels across departments and lines-of-business are at optimal levels.

Here, telcos can leverage the significant advances in machine learning, workforce planning and analytics to directly link employee costs to positive ROI. Modern talent management solutions further remove many of the factors that historically led to poor talent management decisions, including manager biases, limited access to information and insufficient use of appropriate performance management criteria.

5. Supporting the needs and wellbeing of your workforce Not too long ago, the very concept of employee wellbeing was limited to a narrow band of people working in very specific fields. However, the arrival of the hyperconnected, always-on worker has made employee wellbeing a primary consideration for effective workforce engagement and talent management. Stressed, exhausted, distracted or physically ill workers are not productive. Wellbeing extends beyond physical factors and requires telcos to create work environments that are conducive to making workers feel valued and well-supported while respecting cultural and demographic differences.

6. Managing operational risks caused by data and people Beyond pure disruption, most organisations face a slew of regulatory and operational risks associated with data protection, cyber security, scalability and sustainability. New regulations such as the European Union’s General Data Protection Regulation promises strong sanction against companies that fail to protect users’ data or uses that data for nefarious purposes. Trying to navigate the regulatory complexities of the modern workplace in a manual way is near-impossible. Telcos need to implement compliant, secure and cost-effective human capital management technology platforms that can automate much of the task of compliance and free HR departments up to focus more on attracting, engaging and retaining top talent.

October 2018 Startupmagazine.co.ke

36

At the back

Travel & Leisure

Where are Your Hiking Shoes? …Thomson Falls Beckons!

A tourist from Nakuru wrote a review of his experience and said, “Travelling from the dust bowl of Nakuru, it was a joy to see the ever changing landscape and vegetation. Tea and coffee plantations merged with the lush forests; colours of Africa that fight for attention in your head, around every corner another view which makes you want to stop and enjoy.”

By Adisa Hudson

Startupmagazine.co.ke October 2018

Many of us have heard about it in one way or another; perhaps during our random checks on places to visit but mostly in Geography class. Located in the South-East of Nyahururu Town is the

beautiful Thomson falls in a dense forest on the environs of Mt Kenya and the Great Rift Valley. Beautifully hidden at the heart of central Kenya, Nyaharuru is approximately 180 kilometers from Nairobi. Only 2 hours’ drive from the bustle of thecrowded city, the contrasting surrounding with lush green vegetation will put your mind to rest.

Named after a naturalist and geologist from Scotland, Thomson falls is enclosed in riparian vegetation on the slopes of the ranges. Joseph Thomson discovered

37 the fall in 1887 during his exploration journey as he walked all the way from Mombasa to Lake Victoria. Overlooking Ole-Ngare Naro River at the basement of Aberdares ranges that form one of the pillars of the Great Rift Valley, the fall boasts of a pleasant and surreal mother nature undefiled.The breathtaking falls and the vapour created are a wonder to behold!

With one of the biggest hippo pools of Kenya located upstream from the falls, it is possible to view the falls from aboveor trail down to the bottom of the ravine for a different view.

Accommodation Just around the vicinity lies the pristine and immaculate Thomson Falls Lodge.

Tucked in Kenya’s high towns- one of Kenya’s highest cities, Nyahururu - at 2360 meters above sea level next toworld renowned Thomson s fall, the loverlooks the Ole NgareNaro River. Thomson’s Falls Lodge isencircled by 10 acres of meadows, dappled with African olive and cedar trees.

Built in the early 1930’s by English settlers, the original cottages still stand providing that rustic setup that gives a refreshing outlook of a surreal countryside setting. While the exterior is well maintained with green lawns and lush garden with trees and beautiful flowers that defines our botanical pride, the interiors are quite the opposite. The rooms are what can be best defined as furnished with post-colonial pleasure. From the old-fashionedfurniture’s, doors and window frames to paintings and chandeliers, you are guaranteed to have a colonial experience of the early settlers.

The Lodge is an ideal overnight stop for travelers moving between Samburu and the Great Rift Valley.

FRESH.INSPIRING.ANALYTICAL

waters of falling from such heights is not only fascinating but calming. Thomson’s Falls Lodge has 28 Rooms catering for all your preference as a solo or group travellers!

Travel and access Conveniently located 2km from along Nyahururu-Nyeri High way, one can walk the small distance or board a taxi to Thomsonfall. Entry charges to access Nyahururu Thomson fallis affordable but slightly varies depending on your nationality.

Activities and local discoveries The main activityto be involved in at Thomson’sfallis picnics and guided walks right down to the bottom of the falls.

Tourists can also pick up guiding maps from the curio shops around Thomson’s Fall entrance to get guidance on the direction of Kenyan`s Highest Hippo Pools found on upstream of Thomson’s Fall in Nyahururu.

What to take with you As you plan that visit and get acquainted with the teemingserenity in our beautiful country, remember to pack the few essentials in your travel pack.

•Footwear like comfortable sneakers to protect your feet and ease while hiking •T-shirts and shorts; wear comfortable hiking jersey

•Carry a good camera for photography and capturing memories •Have plenty of drinking water and of course •Tag your friend along; the many you are, the merrier it gets!

Fact file Thomson fall is a 74 metres (243 ft) scenic waterfall on the EwasoNg’iro River draining from the Aberdare Mountain Ranges.

Thomson falls is situated at estimated 2 kilometres from Nyahururu town in central Kenya, at an estimated 2,360 metres (7,740 ft) elevation.

Ewaso Narok River is a main tributary of the Ewaso Ng’iro River. It is a major economic resource for the adjacent town of Nyahururu. Most of the revenue is received from tourists, both international and domestic, who are charged at the gate.

Kenya is a major destination of most tourists who come to Africa. Nyahururu falls in Kenya ensure that people, who visit, get a refreshing tour with maximum security through guards. The domestic tourists in Kenya are also frequent visitors of the Thomsons falls in Nyahururu especially during special holidays and weekends in Kenya.

However, for busy Nairobi dwellers, Thomson Falls remains that magical travel to place to spend a few hours in a quiet but refreshing aura that leaves one grateful to Mother Nature.Basically, it’s a combination of magic waters and the epitome of faded glory of the colonials.

Seeing and listening to the magnificent October 2018 Startupmagazine.co.ke

38

Coffee Break

Book Review THE SUBTLE ART OF NOT GIVING A F*CK A Counterintuitive Approach to Living a Good Life Author: Mark Manson Reviewer: Oroni Tendera or equivocate. He tells it like it is—a dose of raw, refreshing, honest truth that is sorely lacking today. The Subtle Art of Not Giving a F**k is his antidote to the coddling, let’s-all-feel-good mindset that has infected modern society and spoiled a generation, rewarding them with gold medals just for showing up.

Manson makes the argument, backed both by academic research and well-timed poop jokes, that improving our lives hinges not on our ability to turn lemons into lemonade, but on learning to stomach lemons better. Human beings are flawed and limited—”not everybody can be extraordinary, there are winners and losers in society, and some of it is not fair or your fault.” Manson advises us to get to know our limitations and accept them. Once we embrace our fears, faults, and uncertainties, once we stop running and avoiding and start confronting painful truths, we can begin to find the courage, perseverance, honesty, responsibility, curiosity, and forgiveness we seek.

New York Times Bestseller In this generation-defining self-help guide, a superstar blogger cuts through the crap to show us how to stop trying to be “positive” all the time so that we can truly become better, happier people.

For decades, we’ve been told that positive thinking is the key to a happy, rich life. “F**k positivity,” Mark Manson says.

“Let’s be honest, shit is f**ked and we have to live with it.” In his wildly popular Internet blog, Manson doesn’t sugarcoat Startupmagazine.co.ke October 2018

There are only so many things we can give a f**k about so we need to figure out which ones really matter, Manson makes clear. While money is nice, caring about what you do with your life is better, because true wealth is about experience. A much-needed grab-you-by-the-shoulders-and-look-you-inthe-eye moment of real-talk, filled with entertaining stories and profane, ruthless humor, The Subtle Art of Not Giving a F**k is a refreshing slap for a generation to help them lead contented, grounded lives.

FRESH.INSPIRING.ANALYTICAL

1 USIU-AFRICA GRADUATION SEPTEMBER 2018

4

2

5

3 1.Nyeri Deputy Governor- The Nyeri Deputy Governor Dr. Caroline Karuga receives her Doctorate degree in Business Administration 2.Dr. Lola Odubekun – The Chair of the University Council, Dr. Lola Odubekun, delivers the speech on behalf of the University Chancellor Dr. Manu Chandaria.

3.Prof. Collette Suda- The Guest of Honor, Chief Administrative Secretary and Principal Secretary, University Education & Research, Ministry of Education Prof. Collette Suda delivers her speech.

4.Prof. Paul T. Zeleza – The Vice Chancellor, USIU-Africa, Prof. Paul T. Zeleza delivers his

commencement speech. Community Service Award – Elham Soni (Founder of Educate Your Own Student Initiative-USIU-Africa) receives the community service award during the 40th Commencement ceremony.

5.Community Service Award – Elham Soni (Founder of Educate Your Own Student Initiative-USIU-Africa) receives the community service award during the 40th Commencement ceremony.

October 2018 Startupmagazine.co.ke

Startupmagazine.co.ke October 2018

FRESH.INSPIRING.ANALYTICAL

Coffee Break

Blog Review Blog name: therelationshipmirror.com Founder: Alison Reviewer: Adisa Hudson Relationships are very crucial in our day to day endeavors. Sometimes it is family, colleagues, friends and most importantly relationship with God for those who believe.

The blog relationships mirror- a Christian blog - was inspired by the fact that relationships we hold go into a big extent to define our perception and how we look at ourselves. Relationships may build us or destroy us depending with the reflection it gives us. According to Alison, our relationships are a reflection of our true selves.

Every time you find that something is going wrong in one of your relationships,

there’sneed to take a look at yourself !

In the relationship mirror, Allison explores relationships from all angles and finally mirrors them against God’s word.

There is no better mirror than his statutes and commands!

She strongly believes that everything around us is dependent on one thing – the quality of our relationships. Our relationships reflect the conditions of our heart.

In her writing, she constantly reminds the readers that she is not perfect and for sure all the writings will not be from her personal experiences.However she says, “I am human and bound to err from time to

time. My relationship with Christ, however, gives me hope. As He continues to change my heart and make me more like Him, He gives me the wisdom I need to improve my relationships.”

The journey through this spiritual blog will encourage anyone to know that we are all work in progress and God is willing to work in us to improve our relationship with others.

About the Founder– Alison is a wife, mother, daughter, and sister. She loves to encourage people and to help them achieve their full potential in Christ.

Paying your Electricity Bill Paying your Electricity Bill with M-Pesa (Safaricom) 1. Select “Pay Bill” from the M-Pesa menu.

2. Enter the Kenya Power business number 888 888 / 501200 / 800904.

3. Enter your full Kenya Power account number e.g. 123456-01.

4. Enter the amount you wish to pay which should be between KShs.100 and KShs.35,000.00 5. Enter your M-Pesa PIN. 6. Confirm that all details are correct.

7. You will receive a confirmation of the transaction via SMS.

Debit Card / Credit Card

How to Buy Kenya Power Prepaid Tokens via M-PESA Paybill Number 888880/501200/800904 • Go to Safaricom SIM Tool Kit, select M-PESA menu, select “Lipa na M-PESA” • Select “Pay Bill” • Select “Enter Business no.”, Enter Kenya Power Lipa na M-PESA PayBill Number 888880/501200/800904 and press “OK” • Select “Enter Account no.”, Enter your Kenya Power Prepaid Meter Number (e.g. 0100 xxxx xxxx x) and press “OK” • “Enter Amount”, between KShs.100 and KShs.35,000.00 and press “OK” • Enter your M-PESA PIN and press “OK” • Confirm all the details are correct and press “OK” • M-PESA HAKIKISHA. You will get a notification with the intended recipient’s name e.g. “Pay Kenya Power KShs.1,000.00 for Account 0100 xxxx xxxx x Press 1 within 20 seconds to STOP this transaction.”

• Kenya Power will then generate prepaid token valid for your meter and send via SMS.

Paying your Electricity Bill with Airtel Money (Airtel) 1.

2.

3.

4.

Select “Airtel Money’’ from the menu.

Click on “Make Payments”.

Select “Paybill”.

Choose Kenya Power Bill for postpaid bill OR Kenya Power Prepaid for purchase of tokens.

5. Enter the amount you wish to pay.

6. Enter your Airtel Money PIN. 7. Under the reference option, type your full Kenya Power account number e.g. 12345601.

8. Confirm that all details are correct.

9. You will receive a confirmation of the transaction via SMS.

You can check your Kenya Power bill by sending the first part of your account number e.g. 123456 by SMS to 95551.

Powering people for better lives

October 2018 Startupmagazine.co.ke

At the back

Song Review

Title: Lucky You Eminem ft Joyner Lucas Review by Sylvester Habil

Startupmagazine.co.ke October 2018

The rapid-fire on “Lucky You” is insane When Eminem released a surprise album last month, the rap game was officially put on notice. Calling out dozens of rappers on Kamikaze, many of the headlines surrounding the Detroit artist were about his new rivals. Lil Pump, Lil Xan, Machine Gun Kelly, Joe Budden, and others saw the ire of Slim Shady and while he may have taken somewhat of an L with his last album, Eminem is officially back on track. Many are offering rave reviews for the new album and one of the main reasons for people’s satisfaction is because of the energy he brings on tracks like “Lucky You” with Joyner Lucas.

Em easily could have taken things slowly on his new project, calling in a few verses and dropping a mediocre project. Instead, he went for some of the rapid-fire approaches filled with lyrical prowess and clever wordplay that we were hungry for. Of course, Em has been in the game

for decades and while it was simple for him to call out a few mumble rappers elsewhere, he critiqued the state of the genre alongside one of the most lyrically skilled cats out today, Joyner Lucas.

In his attack of new-age rappers, he uses their own techniques, mainly the triplet flow, as he gets a lot off of his chest.

Clearly, this record has been waiting to come out for a minute and we’re happy it finally did. Where does it rank for you in terms of the remainder of the tracklist?

FRESH.INSPIRING.ANALYTICAL

FINANCIAL SOUTIONS YOU CAN TRUST Call us for quick financing options to unlock your potential

VISIT US TODAY

•M-pesa EmergencyLoans •M-pesa Till Loans •School Fees Loans •Asset Financingl Loans •Water Tank Loans

And access; •Business Loans •Property Loans •School Fees Loans Head Office 0728 036 997 0703 777 770

Nakuru Office 0792 695 331 0728 830 116

Info@samchicredit.co.ke www.samchicredit.co.ke

Head Office, Barclays Plaza. Market Rd,CBD. P.O BOX 16982-00200. Nairobi Kenya October 2018 Startupmagazine.co.ke

Startupmagazine.co.ke October 2018