In Kenya, a teenage Maasai (http://en.wikipedia.org/wiki/Maasai_people) inventor has developed a way to chase lions away from livestock that doesn’t harm the lions. It is a common practice to kill lions when they threaten or kill livestock, and this has led to a precipitous drop in the local lion population at Nairobi National Park (http://www.kws.org/parks/parks_reserves/NANP.html/), near the country’s capital, Nairobi. Lions are a significant tourist attraction for Kenya and the population decline is a threat to the future of the tourist industry.
Trying to find the right balance between livestock and wild animals is a problem across the global South. As populations rise, and the number of animals kept for domestic food markets increases, so does conflict between farmers and predatory wild animals looking for an easy meal. And there is no more tempting easy meal than domesticated animals tamed and kept in herds.
According to Reuters, 13-year-old Richard Turere has developed a system of flashing lights to scare off lions at night. The LED (light-emitting diode) (http://en.wikipedia.org/wiki/Light-emitting_diode) bulbs were gathered from broken flashlights. Turere then wired them to a solar-powered car battery used to power the family’s TV.
Turere has placed the lights on poles surrounding the enclosure where the cattle stay at night.
“Lions were eating our cattle at night, which made me very annoyed,” he told Reuters. “And I thought that I have to come up with an idea of making bulbs. Because I knew that the lions were afraid of something moving.
“When someone wakes up at night and moves with a torch, they are afraid. So I made the bulbs which flash at night and keep away lions.”
Nairobi National Park is wild and unfenced, leaving lions free to wander on to farmland. Tragically for the lions, increasing numbers are being killed by farmers protecting herds. Conservationists say Kenya’s lion population has plummeted from 15,000 to just 2,000 in a decade. Since October 2011, Wildlife Direct (http://wildlifedirect.org/) has documented 169 killings of livestock by lions in the location near Turere’s farm.
Kenya depends heavily on tourism to the national parks where people want to see lions. Kenya has been enjoying significant growth in tourism and has the goal of reaching 2 million international tourists in 2012 (Kenyan Ministry of Tourism). Earnings from international tourism are the second largest source of foreign exchange for the country and the services sector – 63 per cent of GDP (gross domestic product) – is dominated by tourism (Brand Kenya). So-called ‘photo safaris’ to the country’s national parks and game preserves are the main attraction for international tourists.
But farmers need to have their herds protected since livestock are a critical income source for them, as well as a food source for the country. Cattle herding has long been an important income source and livelihood for the Maasai people.
According to conservationist Dr. Paula Kahumbu, executive director of Wildlife Direct, other herding families would like Richard to set up the light system on their farms too.
Since Richard installed the lights, his family has not lost any cattle to lions. This bright idea has also dramatically altered Turere’s life. The attention he has received for the invention has led to him being funded by local environment groups to attend a prestigious private school, Brookhouse International School (http://www.brookhouse.ac.ke/) in Nairobi. Things are truly looking bright for Turere!
Published: August 2012
Resources
1) Experience Kenya: The web portal packed with information on Kenyan tourist attractions and investment opportunities. Website:http://www.experiencekenya.co.ke/index.php
2) Brand Kenya: The official Brand Kenya website shows how the country is weaving together all things Kenyan to create a strong global brand for the country. Website:http://brandkenya.co.ke/
Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP’s South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South’s innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.
As economies across Africa grow, the continent still has a long way to go to create infrastructure to match people’s rising expectations of what a modern, prosperous life looks like.
Africa’s current economic growth has mainly been driven by commodities and oil and gas exports. Critics say this boom has failed to bring tangible benefits to many of Africa’s poor, who feel left out of the prosperity.
Trade has been flourishing not only because of exports to traditional markets in Europe and North America but also because of explosive growth in trade and investment between China and Africa.
Two trends now underway are set to transform people’s wealth and living standards despite the many obstacles caused by the inequalities of current economic growth. The first is the rise and rise of retail shopping options
looking to meet a strong appetite for consumer goods. And the second is the expansion of flying options on a continent notorious for its poor air links. Increasing investment in retail and flight networks will be a source of jobs, careers and wealth for the coming decade.
The aviation sector supports 6.7 million jobs on the continent, according to TradeMark Southern Africa (http://www.trademarksa.org), and makes a US $67.8 billion contribution to Africa’s gross domestic product (GDP).
But the woeful state of Africa’s air networks means that it is often cheaper for people to fly to other parts of Africa via European airports. And Africa has a long way to go to match air safety standards found elsewhere: there was one accident for every 305,000 flights involving Western-built jets in Africa last year (IATA) – nine times the global average.
But Africa is now receiving the attention of the global airline industry. The Abuja Declaration (http://nigerianaviationnews.blogspot.co.uk/2012/07/aviation-safety-in-africa-abuja.html) aims to bring the African accident rate in line with the global average by 2015. And it is hoped the added competition and introduction of more global players will also raise standards and make flying in Africa safer, more convenient and cheaper.
The experience of Europe and North America shows that increased air traffic brings a boost to economic growth.
With more frequent, safer and more reliable air routes, business people will be able to move around and strike deals, tourists can get around and traders can cross borders without the hassle of navigating poor road networks.
Airlines are lining up to compete on improving air links in Africa to capitalize on rising incomes and economic dynamism.
State-owned South African Airways (SAA) (http://www.flysaa.com/gb/en/) is also starting to expand its network to include every capital city in Africa. SAA will start by adding flights to Ivory Coast and the Democratic Republic of Congo, making it able to serve 26 African destinations. In the short term, it is doing this by halting flights between Cape Town and London, leaving that route to Virgin Atlantic and British Airways.
Operating out of bases in Kenya, Tanzania, Ghana and Angola, a new African discount airline, FastJet (http://www.fastjet.com/) – with EasyJet (http://www.easyjet.com/en) founder Stelios Haji-Ioannou as its backer – is taking over Fly540 (http://www.fly540.com/) and adding 15 leased Airbus aircraft. It will launch flights to Ghana, Kenya, Tanzania and Angola. According to Kenya’s Nation newspaper, the plan is to replicate the success of EasyJet connecting Europe and North Africa with cheap flights in sub-Saharan Africa.
Analysts believe the entry of an aggressive and experienced player like Haji-Ioannou will shake up competition within African aviation.
Other global players lining up to expand in Africa include Emirates, Etihad, Qatar Airways, Turkish Airlines and Korea Air, which has already started flying between South Korea and Kenya’s capital, Nairobi. This is being seen as a boost to the trade in electronics goods between the two countries.
The added excitement in the African air industry has also prompted Air Uganda (http://www.air-uganda.com/) and RwandaAir (http://www.rwandair.com/) to increase their destinations. Qatar Airways (http://www.qatarairways.com/uk/en/homepage.page) will start flying in November 2012 to Maputo, Mozambique three times a week, increasing to 20 the number of destinations the airline serves, according to the Nation.
And while Emirates has a 41 per cent share of the African market, African player Ethiopian Airlines (http://www.flyethiopian.com/en/default.aspx) ambitiously wants to become Africa’s largest airline by 2025.
For shoppers, West Africa is experiencing a boom in new retail spaces being developed, according to a report from Euromonitor International (http://www.euromonitor.com) (http://www.howwemadeitinafrica.com/ghana-%E2%80%93-africas-new-retail-hotspot/18544/). The advantages of creating and developing modern retail spaces are numerous: hygienic shopping environments with greater safety and security attract multinational and global brands, which tend to create lots of long-term jobs.
Euromonitor International has identified Ghana as the next hotspot for retailers. The country is seen to have the right business environment in place that is attractive to foreign investors. It also has the right mix of political stability, cultural tolerance and rising prosperity.
The country is now being seen as the gateway to West Africa’s market of 250 million consumers. Ghana is able to leverage its position as a gateway into landlocked nations and on its strong ties with English-speaking powerhouses like Britain and the United States.
On top of these strategic advantages, the country has focused on upgrading retail spaces in the capital, Accra. The Accra Mall (http://www.accramall.com/), opened in 2007, is considered the most modern shopping mall in Ghana.
Euromonitor found Ghana’s retail industry grew by 14 per cent between 2006 and 2011.
Euromonitor found companies like multinational Unilever and PZ Cussons believed basing their operations in Ghana was a big advantage.
“The presence of such manufacturers provides a good opportunity for retailers as they can source these manufacturers’ products cheaper locally rather than importing them,” it said.
Euromonitor identified three other African countries as potential retail marketplaces. This includes Zambia, a potential agribusiness powerhouse. It is already developing a strong reputation in beef through its Zambeef (http://www.zambeefplc.com/) operation. South African companies have done well in Zambia, including Shoprite, Pick n Pay, Mr Price and the Foschini Group. Much of the action is around the capital, Lusaka.
Rwanda is known for its ease of doing business and there is activity going on in residential areas, roads, hotels, offices and retail spaces. The capital, Kigali, has a new modern, shopping mall, The Union Trade Centre, with a 24-hour store.
Angola has been benefiting from peace since the end of its civil war in 2002. Foreign companies have been attracted to Angola from South Africa, Portugal and Brazil. The Belas Shopping Mall (http://belasshopping.com/website/) opened in 2007 in the capital, Luanda, followed by the Ginga Shopping Mall on the city’s outskirts in 2011.
Published: August 2012
Resources
1) How we made it in Africa: A great website packed with inspirational people and stories on business success in Africa. Website:http://www.howwemadeitinafrica.com/
Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP’s South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South’s innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.
The challenge of finding alternate fuel sources is capturing the imagination of innovators across the global South. As the world’s population increases – it recently reached 7 billion (UN) – and the number of people seeking a better life grows in turn, the energy demands on the planet are pushing up competition for existing conventional fuel sources.
The modern lifestyle that many aspire to requires energy, whether it’s using electronic products which consume large quantities of electricity, driving personal vehicles or living in homes that are artificially heated and cooled.
This energy hunger has opened up a whole new market demand that needs to be met. The scale of this market is enormous, but the solutions are ultimately limited only by people’s imaginations. An award-winning Egyptian teenage scientist is capturing attention for the imaginative solution of turning waste plastic into biofuel, sparking interest in the creation of a whole new source of wealth for her country.
According to Inhabitat (inhabitat.com), a website dedicated to “green design, innovation, and the future of clean technology,” her solution could turn the country’s annual consumption of 1 million tonnes of plastic into a year’s supply of biofuel worth US $78 million.
Clever innovators are sitting on a goldmine if they can come up with renewable energy solutions. The U.S. Army alone is looking to spend US $7 billion on renewable energy sources and is accepting bids from the private sector to meet its needs (http://www.forbes.com/sites/toddwoody/2012/08/08/u-s-army-opens-bids-to-buy-7-billionin-renewable-energy/). The army is looking to sign contracts stretching up to 30 years for buying electricity generated by solar, wind, geothermal and biomass projects.
The options are numerous for renewable energy – from solar power to wind power to algae as a source of biofuels (http://en.wikipedia.org/wiki/Biofuel). The challenge is to find a fuel source that is plentiful, renewable, and crucially, doesn’t harm other needs.
Using biofuel as a replacement for conventional petroleum-based fuels like gasoline and diesel appears to be an attractive solution, but it can lead to other problems. Some people are using used cooking oils to convert into biodiesels, but sometimes there is not enough used cooking oil to meet demand. In short, a constant supply source is required to meet ever-increasing energy demand.
A famous example of where the use of renewable plant-based fuel sources can go wrong is the case of corn. The widespread use of corn as a source for biofuels – rather than for animal feed or human food – has led to accusations this is contributing to the global food crisis. The current drought in the United States is damaging corn crops and only making this problem more acute. The U.S. is the world’s largest producer of corn (US Department of Agriculture) and much of it is used as livestock feed around the world.
Faiad’s solution is appealing because the fuel does not come from biomass – derived from plant matter – but turns waste plastic into the raw material for biofuel.
Plastic waste is a common byproduct of modern life. Plastic is used extensively in packaging, bottles, bags and electronic products. It fills up landfill sites and is a blight on the landscape in many countries. It is also a product made from petrochemicals (http://en.wikipedia.org/wiki/Plastic), the very source of conventional fuel used by most of the world’s vehicles.
Breaking down waste plastic from bottles, packaging and other products into what is called ‘biofuel feedstock’ – the substance necessary to start the creation of biofuel – requires a means to turn the plastic into fuel.
According to Green Prophet (greenprophet.com), Faiad believes her technological breakthrough “can provide an economically efficient method for production of hydrocarbon fuel namely: cracked naphtha (http://en.wikipedia.org/wiki/Petroleum_naphtha) of about 40,000 tons per year and hydrocarbon gases of about 138,000 tons per year equivalent to US $78 million.”
This could be a big economic boost to Egypt’s economy, simultaneously reducing dependence on petroleum-based fuels and creating a new source of income. Egypt’s economy has been hit hard since the start of the Arab Spring (http://en.wikipedia.org/wiki/Arab_Spring). The number of tourists fell 33 per cent in 2011 and revenue dropped by US $3.7 billion from 2010 (Egyptian Tourism Minister). In 2009 about 12.5 million tourists visited Egypt, bringing revenue of US $10.8 billion. The tourism sector is one of the country’s top sources of foreign revenue, accounting for more than 11 per cent of GDP, and offers jobs in a country beset by high unemployment – for Egypt, tourism makes up 11 per cent of its GDP (gross domestic product) (Reuters).
1) Biofuel: A website with a good overview of biofuel options and directions on how to make biofuel. Website: http://biofuel.org.uk/
2) Biogasmax: Biogas Highway – waste to energy concept, 18-19 September in Gothenburg, Sweden. Participate in an intensive two-day programme with complete focus on biogas at the Water and Wastewater Fair. Meet with exhibiting Swedish biogas companies and companies within the water and wastewater sectors. Participate at the “International biogas business opportunities” seminar and learn more about biogas concepts and strategies. Website: http://www.biogasmax.eu/
An anticipated game-changing revolution in African trading set for 2013 is getting one innovative business very excited.
Southern African mobile phone “m-commerce” pioneer moWoza (mowoza.com) is developing new ways of selling services and products through mobile phones and developing the networks and infrastructure to capitalize on coming changes in Africa as cross-border trade is liberalized.
It is already selling food packages containing well-known South African brands that can be ordered by migrants on their mobile phones and then delivered to recipients – family or friends – even in remote and hard-to-reach communities. The service is currently operating between Mozambique and South Africa – the two countries share a border.
The start-up hopes to help the millions of migrant workers and small traders who contribute to the constant flow of trade and wealth between states in Africa. These people face many obstacles, including bureaucratic red tape, corruption and harassment.
Cross-border trade by economic migrants is largely informal. moWoza hopes to make it formal and efficient while reducing exploitation of migrants and corrupt practices by officials. By providing an easy-to-use mobile phone service, it hopes to build trust with these transactions.
Africa is a market of a billion people worth US $2 trillion in trade and business, but the World Bank estimates the continent is losing billions of dollars in potential earnings because of high trade barriers. It found that it is easier for African countries to trade with the rest of the world than with other African countries.
The continent’s leaders are calling for a continent-wide free trade area by 2017.
Studies by the World Bank and others have repeatedly shown that inefficient transport and trade barriers translate into higher prices of goods for consumers as importers pass along high transport costs to consumers. Food prices remain extremely high in Africa – almost 25 per cent higher than they were in 2006, according to the World Bank. In developing countries, people normally spend up to 80 per cent of their incomes on food.
With the world in the grip of an ongoing food crisis brought about by multiple factors – including growing populations, environmental challenges such as drought and soil depletion, declining rural economies, inefficient farming methods and commodity speculation – measures that increase efficiencies and trade can be a powerful counterweight and help drive prices back down again.
moWoza – mo stands for mobile and Woza is a Zulu word meaning running -sells a range of products including basic foodstuffs to a target market of cross-border migrants in Southern Africa. moWoza estimates there are 7 million migrant and cross-border shoppers in South Africa alone, and it’s building a network reaching into remote communities to deliver packages ordered through its m-commerce service on mobile phones.
moWoza aims to open up access to products in these underserved markets.
moWoza is trying to position itself for the new opportunities that will arise when, in 2013, 23 African borders open for regional trade, creating a vast trading area stretching from Cairo in Egypt to Cape Town in South Africa.
moWoza wants to be the m-commerce brand that people will turn to. It is chasing customer markets that include African economic migrants, small and medium-sized enterprises doing cross border trade, and the 30 million African economic migrants who are supporting family back in their home countries.
Founder Suzana Moreira says the company carried out extensive research in South Africa, Mozambique, Lesotho, Zimbabwe and Kenya before launching its first trial runs between South Africa and Mozambique. “We ran several pilots to determine the most efficient way to provide access to packages for the beneficiaries and developed the necessary technology to enable our customers (migrants) to place orders simply. We are now operating between Johannesburg and Maputo,” she said.
Officially incorporated in 2009, moWoza did not get up and running until 2010.
Once a customer has experienced a delivery from moWoza, they are introduced to other services like banking or how to download information from the Internet. Many customers are only just learning about the resources available online.
“We look forward to the opening up of cross border trade as our findings suggest that the liberalization and facilitation of the cross-border trade initiative will increase demand for all products and services from South Africa to neighbouring countries,” Moreira said. “South Africa offers an extensive range of products compared to the choice of products that are offered in many of the neighbouring countries.
“The structures and networks that compel migrants to come to South Africa are well established,” she explained.
“The social networks encourage the movement of labour. Hundreds of thousands of male migrants from the Southern African Develoment Community, SADC (http://www.sadc.int/), countries have spent the greater parts of their working lives in South Africa. They in turn had parents or grandparents who had worked in South Africa, while providing a lifeline to the family in the home country.
“This practice will continue: mobile money to a degree will facilitate this lifeline but as long as products can be sourced cheaper in South Africa, the demand for South African products will continue.”
The people behind moWoza sound like business radicals, proclaiming that traditional ‘bricks and mortar’ businesses will be replaced in a shopping revolution by WAP (wireless application protocol) and SMS (short message service) business platforms operating on mobile phones.
Apart from developing the m-commerce business, moWoza aspires to become a well-known brand for the migrant community.
“Becoming a lifestyle brand is a bold statement on our part,” Moreira said. “However, this goal reflects a measure of success and would demonstrate that we are delivering value to our customers (migrants and micro-merchants) and their beneficiaries.”
The moWoza brand hopes to reflect the lives of their customers and be all about embracing fluidity and mobility.
“As our primary customers are transnational and highly mobile (immigrants with a dual existence), we would like moWoza to represent mobility and fluidity (attune to anytime, anywhere, always).” she said. “Their greatest aspiration is an improved livelihood and a simplification of the rigours of grass-roots existence.”
moWoza foresees big changes coming for the economies of the African countries affected by the opening up of regional trade. According to its website: “New markets and trading routes will mushroom, traditional value chains will be replaced with ICT [information and communications technology] innovations; a savvier and younger consumer will emerge who will value convenience and simplicity.”
For users, moWoza’s service works like this: A customer uses a mobile phone to make a purchase. An agent helps with selecting the right package and delivery options. When the payment is made, an SMS mobile receipt – a so-called m-receipt – is sent to the customer. The person who will be receiving the parcel will also receive a text message. During the delivery process, ‘m-updates’ are sent on progress to both parties and when the parcel is finally delivered, a final notification is sent of delivery.
Special drop-off points have been set up in countries where the service is available and there is follow-up contact with the customer to determine their continuing needs.
MoWoza hires people from the communities they operate in as agents. An agent works with the customer to show how the Internet works on mobile phones and to improve their literacy skills.
Product parcels are selected to meet the World Health Organization (WHO) nutritional guidelines. The packages are selected based on focus groups and customer feedback.
With offices in South Africa and the United Kingdom, moWoza is looking forward to expanding what it can offer.
“We will continue to innovate, and deliver services that improve the livelihoods of our target market and their beneficiaries,” Moreira said. “We will extend our packages to include seeds and other agricultural products, school and educational materials, and health products. As we grow, our services will extend to digital (virtual) goods, e.g. insurance products specifically targeting the underserved communities.”
2) Borderless Alliance: Removing Trade Barriers in West Africa: Borderless is a vision for competitive trade in West Africa – of eliminating barriers to trade. Streamlining procedures, attacking corruption and facilitating the movement of people and goods will lower costs. Consequently, businesses will expand, create jobs and generate more revenue for government and more income for people. Website:http://www.borderlesswa.com/
3) Borderless Conference 2013 and 2014: Call for proposals: The Borderless Alliance Secretariat announces a call for proposals to host the 2013 annual Borderless Conference. Borderless Conference 2013 will be the second transport and trade annual conference in West Africa, and will bring together more than 300 stakeholders from around the world to discuss efficiency in logistics, using data for decision making and advocacy. Website:http://www.borderlesswa.com/news/borderless-conference-2013-2014-call-proposals
5) Trade Mark East Africa: Supporting East African Integration: Through TradeMark East Africa, a cost-effective regional aid delivery mechanism has been established that can focus on building long-term East African capacity. TradeMark East Africa provides a durable platform for scaling-up of Aid For Trade to East Africa. Website:http://www.trademarkea.com/home/
9) Cross Border Trade Desk: This website is a ‘resource’ to help cross border traders in Eastern and Southern Africa to find an association near to them, to voice their opinions and explain what COMESA is doing in improving conditions for small-scale cross border traders. Website: http://www.cbtcomesa.com/
10) Defragmenting Africa website including the report De-Fragmenting Africa: Deepening Regional Trade Integration in Goods and Services by the World Bank. Website: http://tinyurl.com/cta3ykf
Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP’s South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South’s innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.
David South Consulting 
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