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African Media Changing to Reach Growing Middle Class

Post author By David South Consulting
Post date 21/10/2022
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By David South, Development Challenges, South-South Solutions

Africa’s growing middle classes are being targeted by a new generation of media entrepreneurs. This growing group of Africans is ambitious and intelligent, and they want media that matches their aspirational ways. Clever media people are stepping up to feed this trend.

The continent as a whole forms the 10th largest economy in the world. Of Africa’s more than 1 billion people, 900 million can be classified as part of the consumer economy. Out of this group, there a third – approximately 300 million people – make modest sums by Western standards, about US $200 a month, but have spare cash to buy things like mobile phones, DVDs and new clothes, or pay for better schools. They are the population that is overlooked when attention is focused only on the very poor living on less than US $2 a day.

Pulitzer Prize-winning Nigerian journalist Dele Olojede is one of several African media pioneers re-shaping the continent’s media and taking it to the next level. Another is Godfrey Mwampembwa, whose popular puppet television show satirizes contemporary politics and current events and brings a welcome local flavour to a programming schedule packed with foreign imports.

A book by University of Texas professor Vijay Mahajan, Africa Rising, details the phenomenon of Africa’s middle class consumer society. He calls this group of middle class consumers ‘Africa 2’, with the desperately poor called Africa 3s, and the extremely rich Africa 1s.

This new group has expanded far beyond just the ruling elites and government workers. Many of its members work in the private sector, as secretaries, computer entrepreneurs, merchants and others who have benefited from consistent growth rates in many African countries.

And because these people consume products and services – and advertising products and services are the lifeblood of private media – the opportunities are plentiful.

“I’m convinced that Africa is going to be built by Africa 2s,” Mahajan told the Washington Post newspaper. “These are the people sending their kids to school . . . who are the most optimistic, the most forward-thinking.”

Olojede, owner and publisher of Next newspaper (http://234next.com/csp/cms/sites/Next/Home/index.csp) in Nigeria’s biggest city, Lagos, has been able to grab readers by breaking original stories and offering a quality, well-designed publication. Launched in 2008, it has its sights set on going continent-wide by 2011.

“There is a need for a newspaper for the African metropolitan middle classes, along the lines of the International Herald Tribune,” he told Monocle magazine.

Olojede cut his teeth as a foreign editor for the US newspaper Newsday and has used this experience to make Next such a success.

Next has become the number one news website in Nigeria’s highly competitive media scene.

Wisely, Olojede put design at the centre of making his newspaper and website stand out from the competition. He commissioned the experienced newspaper design team of Garcia Media (http://garciamedia.com/blog/articles/in_west_africa_a_new_newspaper_is_born_—online_first) – who have designed for The Wall Street Journal, The Miami Herald and Die Zeit – to develop the template and prototypes.

Kenyan economist James Shikwati (http://en.wikipedia.org/wiki/James_Shikwati) believes Africa’s middle-income consumers are also a driving force for political change.

“It’s empowering,” he told the Washington Post. “If you give people a sense of freedom in the economic sector, then you deny it in the political sector, you have a problem.”

Kenya-based newspaper cartoonist Gado (Godfrey Mwampembwa) has profited from this phenomenon. Fed up with TV channels sticking to a menu of foreign imports and dull news programmes, he looked to famous puppet TV shows Spitting Image (from Britain) and Les Guignols (from France) for inspiration. The result is the XYZ Show (http://xyzshow.com/blog), which features grotesque puppet caricatures of well-known public and political figures. The show’s blog makes for an excellent entry point into African TV programme-making and its ups and downs. The show is broadcast on Citizen TV in Kenya’s capital, Nairobi.

“I moved to Nairobi in 1992 when I was 23,” Mwampembwa explained to Monocle. “The Daily Nation, the biggest newspaper in Kenya, had lost its editorial cartoonist so they ran a competition to look for his replacement. I sent in my drawings and came second.”

“I took a year off in 2000-2001 to study film and animation in Vancouver. When I got back to Nairobi I started thinking about the sort of TV programme I would like to make. Kenya needed a show that would make fun of our politicians and expose hypocrisy and I thought a puppet show like Les Guignols or Spitting Image would be a great way to do it.”

“We managed to raise funds for a pilot in 2007 and Citizen TV (http://www.facebook.com/pages/Citizen-TV-Kenya/261061365404), a private station, eventually agreed to broadcast a series.”

Each episode costs US $16,740 and the puppets are US $3,600 to make. The programme-makers could only get money from foreign donors: the French, Dutch, and Finnish embassies and the Ford Foundation.

Despite initial complaints from politicians, the show is preparing for its second season – and, Mwampembwa said, “there will be a lot of big stories for us to cover.”

Making a popular TV show is not an easy thing to do. Mwampembwa maintains a furious work pace to straddle his many roles:

“I have to draw a cartoon every day but editorial cartooning is not a nine-to-five job, it’s 24/7. Whenever I get ideas I have to sketch them.

“It was a steep learning curve in the first season. The show is important for Kenyan TV and everything is done here in Nairobi. We won’t change any of the politics though. We are very hard-hitting and we will stay that way.

“Over the years I’ve got nasty letters, emails and phone calls but that’s OK, it’s part of it.”

As these media innovators show, there is nothing but opportunity for entrepreneurs feeding the hungry news and information appetite of the continent’s ambitious middle class.

And Mwampembwa says becoming better informed doesn’t have to be dull: “We are informing the public but I’d like to think we are entertaining them too.”

Published: September 2010

Resources

Africa Rising: A book by Professor Vijay Mahajan on how Africa’s consumer economy is growing and growing. Website: http://tinyurl.com/2vk3m9n

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.

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2023

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Ghana Wants to Tap Global Trendy Party Scene

Post author By David South Consulting
Post date 20/10/2022
No Comments on Ghana Wants to Tap Global Trendy Party Scene

By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

Tourism is big business – and one of the most resilient parts of the global economy. Despite the international economic crisis that has wreaked havoc and increased unemployment and poverty in many countries since 2007, tourism is still going strong.

The UN’s World Tourism Organization (UNWTO) (http://www2.unwto.org/) found international tourist arrivals grew by 5 per cent during the first half of 2013 from the same period in 2012, reaching 500 million arrivals.

“The fact that international tourism grew above expectations confirms that traveling is now part of consumer patterns for an increasing number of people in both emerging and advanced economies,” said UNWTO Secretary-General Taleb Rifai. “This underlines the need to rightly place tourism as one of the key pillars of socio-economic development, being a leading contributor to economic growth, exports and jobs.”

One successful way to lure tourists, especially young tourists, is to nurture hubs of culture, outdoor activities, music and fashion around a holiday destination – generally one involving sun and sand. Such “party scenes” can be found in hotspots as far afield as Florida, the Spanish island of Ibiza and Koh Samui (http://www.kohsamui.com/) in Thailand. While at times annoying to local people, these groups of young tourists do bring significant wealth to smaller towns and seaside communities.

And now there are some in Africa who want to replicate this successful business formula in beach communities.

The Ghanaian fishing village of Kokrobrite (http://en.wikipedia.org/wiki/Kokrobite), located west of the capital, Accra, has become a nascent hub for a dance music scene and beach parties.

“We are organizing an all-day-long beach party with DJs, food and partying, inspired by the kind of summer jams that are held in Miami,” Basil Anthony, Chief Executive of Silky Entertainment (http://www.silkyentertainment.com/), told The Guardian newspaper. Silky Entertainment is organizer of Ghana Summer Beach Rave 2013.

“We are expecting partygoers in the thousands, and double the number we had last year. It’s going to be big.”

Other popular events include Tidal Rave (http://www.youtube.com/watch?v=8f5Wy3g9Y7w), aimed at university students, and an upmarket champagne party at Bella Roma beach which attracts expats and wealthy Ghanaians.

While these events have been very popular locally, ambitious entertainment entrepreneurs want to take the parties to the next level and make them truly global events, attracting tourists from around the world.

“The next Ibiza will be in Africa. It has already started,” said Andrew Tumi, also known as Won, a singer from the group Supafly.

“We are trying to recreate the good things about going to Ibiza, the music and the vibes. But more and more we are creating our own sound here, an Afro-house, reggae, African mashup… It’s really blending the African rhythm into a house scene.”

Dance music is hot right now, and is being refreshed with new trends in Afro-house and Afro-pop from across the continent. This in turn is creating a demand for parties to celebrate and enjoy the music.

The economic impact is considerable as the parties inspire other businesses to feed off the good vibrations. DJ MoBlack, who works in a nightclub in Accra, told The Guardian, “It’s not just the music, it’s a whole scene that’s on the rise – goods, fashion, jewelry – there is a style revolution happening around it. It’s a unique African vibe, but something that people everywhere can relate to.”

The impact on the tourism sector is already quantifiable. Tourist visits to Ghana grew from 400,000 a year in 2005 to 1 million in 2011.

Ben Ohene-Aryeh at the Ghana Tourism Authority (http://www.ghana.travel/) is optimistic bigger things are to come: “[The scene] is catching on well with the youth and now we hope that it will be done on a massive scale,” he said.

There is, however, a downside to this strategy: drug use is on the increase. According to the West Africa Commission on Drugs (wacommissionondrugs.org), marijuana use is on the rise as well as harder drugs such as cocaine.

It’s clear there are pitfalls to the youth-tourism strategy, but these can be managed with the right strategy – and the economic opportunities for small communities are substantial.

Published: November 2013

Resources

1) Information on drug tourism from DARA Thailand: DARA is Asia’s first and leading international destination for drug and alcohol rehabilitation. Website: http://alcoholrehab.com/alcohol-rehab/drug-tourism/

2) 3rd UNWTO International Conference on Tourism and the Media: How new media is shaping the news: With the rise of the new media, both the media landscape and the way stories are being told are changing. Millions of consumers now have the possibility to directly engage in the editorial process due to faster than ever evolving technology. More recently, mobile technology and a myriad of applications for smart phone devices are increasingly influencing communication flows. Website: http://www2.unwto.org/en/event/3rd-unwto-international-conference-tourism-and-media-how-new-media-shaping-news

3) The UNWTO World Tourism Barometer: A regular publication of the Tourism Trends and Marketing Strategies Programme of UNWTO aimed at monitoring the short-term evolution of tourism and providing the sector with relevant and timely information. Website: http://mkt.unwto.org/en/barometer

Tourism Investment and Business Forum for Africa: INVESTOUR is an annual tourism business and knowledge exchange platform in which representatives of African tourism and potential Spanish and Portuguese investors/partners meet to discuss about business and cooperation opportunities. Website: http://africa.unwto.org/en/event/v-tourism-investment-and-business-forum-africa-investour-edition-2014-madrid-spain

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2023

Archive Development Challenges, South-South Solutions Newsletters

Ghana: Oil-rich City Sparks Entrepreneurs and Debate

Post author By David South Consulting
Post date 20/10/2022
No Comments on Ghana: Oil-rich City Sparks Entrepreneurs and Debate

By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

Commodity booms can seem like the answer to a poor nation’s prayers, a way to fulfil all their development dreams and goals. The reality, however, is far more complex. More often than not, the discovery of resources sparks a mad scramble for profits and patronage, as politicians and politically connected elites carve out their slice of the new resource boom before anyone else.

The twin cities of Sekondi-Takoradi (http://en.wikipedia.org/wiki/Sekondi-Takoradi) in the Western Region of Ghana are now experiencing an oil boom. Ghana’s oil production went online in December 2010 and the government is hoping it will double the country’s growth rate.

Large supplies of oil were found off the coast in 2007, transforming Takoradi from a sleepy, rundown port city into the hub for the oil boom.

Local man Peter Abitty told the BBC he was renting out an eight-bedroom house for US $5,000 a month. The house overlooks the sea and comes with banana and coconut trees.

“Tenants that come here can take the coconuts for free! We don’t charge anything,” Abitty said.

He put the strong interest in the house down to a simple fact: “It’s out there: oil, oil, oil.”

People’s hopes are being raised in Ghana’s case because it has built a reputation as a better-governed country than other African petro states like Nigeria and Angola.

But others argue that price increases caused by the boom are destroying local businesses. A report on the Ghana Oil news website found popular local businesses suffering. One example it gave was the Unicorn Internet Café, an employer of local youth, which shut down in 2010 because of high rents.

It found businesses have shut down in the following sectors: timber, sawmilling, super markets, mobile phone shops, boutiques and trading shops. But it also found many new businesses opening up, including banks, insurance companies and hotels.

The challenge facing Ghana is to ensure oil brings a long-term change to a higher value business environment and economy, rather than just an unequal and temporary boom.

Another challenge is to connect the many youth leaving education in the city with the jobs and opportunities being created by the oil industry. The twin cities are a regional educational centre with a lot of technical colleges and secondary schools.

To counter these concerns, a Regional Coordinating Council is promising to place the growth of small and medium enterprises at the centre of regional development.

The dreams and promises for Takoradi are very ambitious. “In five years time, I see Takoradi becoming one of the modern cities of the world,” Alfred Fafali Adagbedu, the owner of Seaweld Engineering (www.seaweldghana.com), a new local company set up to service the oil sector, told the BBC.

“I can imagine skyscrapers, six-lane highways and malls.”

“The transport industry is going to improve, because workers on the rig are going to need to be transported. Agriculture is going to see a boom because all those people on the rig will need to be fed.

“Even market women are going to see more business, because a lot of workers are going to have very fat paychecks. Everyone in this city is going to gain in business.”

How far Takoradi has to travel to come close to meeting these dreams and expectations can be seen in its current state. The railway station has a train with laundry hanging from it because it hasn’t moved in years, reported the BBC. People are living in the sleeping car of the train.

But the typical signs of a boom are all visible: traffic jams, booked hotels, rising rents and prices, and it is already hurting people on fixed salaries.

Local authorities have plans to demolish rundown parts of the city and rebuild with modern office environments for the new businesses resulting from the oil economy.

An estimated US $1 billion a year in revenue will go to the Ghanaian government and local authorities want 10 percent of this to be ring-fenced for regional development.

“Many resources are coming from the western region. From years back, gold is here, timber is here, diamonds are here,” said Nana Kofi Abuna V, one of the few female chiefs in the area.

“But when they share the cake up there, they leave out the western region. This time, if there is oil and gas in the region we should benefit more than everybody else.”

But Adagbedu at Seaweld Ghana believes Ghana will see real improvements.

“I’m very sure we will avoid the mistakes,” he said. “Ghana is a democracy, everyone is watching, so there is going to be a lot of improvement here.”

And to help in keeping these promises, the BBC will continue to return to Sekondi-Takoradi to track its changes and see how things improve.

Published: September 2011

Resources

1) BarCamp Takoradi: BarCamp is an international network of user-generated conferences (or unconferences). They are open, participatory workshop-events, the content of which is provided by participants. Website:http://twitter.com/#!/barcamptakoradi

2) Ghana Ports and Harbours Authority: The Authority overlooks the Takoradi port. Website:http://www.ghanaports.gov.gh/GPHA/takoradi/index.html

3) Friends of the Nation (FON): The NGO serves as a catalyst towards increased action for sustainable natural resource management and health environment in the Takoradi region. Website: http://www.fonghana.20m.com/aboutus1.htm

4) Takoradi City: A website packed with information and photos on the city. Website:http://www.takoradicity.com/pages/sections.php?siteid=takoradicity&mid=39

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2023

Archive Development Challenges, South-South Solutions Newsletters

Venture Capital Surge in Africa to Help Businesses

Post author By David South Consulting
Post date 19/10/2022
No Comments on Venture Capital Surge in Africa to Help Businesses

By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

Africa’s potential economic powerhouse lies in its small and medium enterprises (SMEs). Foreign direct investment (FDI) into Africa ebbs and flows based on the state of the global economy – and most of it is directed towards large enterprises and multinational companies.

Finding ways to support grassroots SMEs has the potential to truly build in sustainable prosperity for the continent and construct stable middle class jobs.

But building a continent-wide network of investors, and directing that investment at the grassroots business entrepreneurs who employ the majority of Africans, is not easy.

Foreign direct investment to Africa rose fivefold from 2000, peaking at US $72 billion in 2008 (African Economic Outlook). A surge in raw material prices fed this boom. FDI is, however, unevenly distributed and much of it goes to extractive industries like mining and oil and gas in a handful of countries. When the global economic crisis hit, FDI inflows to African countries fell by 20 per cent, to US $59 billion in 2009.

Venture Capital for Africa: Connecting Entrepreneurs and Investors (http://vc4africa.biz), is a free service trying to nurture the SME sector and help entrepreneurs overcome the challenges of funding start-ups in Africa. Members are expected to contribute, collaborate and show their seriousness, bringing resources or their ideas and enthusiasm.

It has a detailed website with a mix of resources available. People can register and connect with others, check out venture ideas and the most popular ones in the past day to month, read about featured entrepreneurs, register as an investor looking for investees, and meet-up with others in their city. This includes expatriate communities in places like Oslo, Norway.

VC4Africa believes its mission is to champion entrepreneurship, and particularly SMEs, as the main driver of Africa’s economic growth. These businesses provide the majority of the continent’s employment and income. And as it says on its website, they offer “hope for a better future.” It is estimated SMEs contribute two thirds of national income for many African countries and are a major source of middle class jobs.

VC4Africa believes “that the most meaningful impact will still come from grass roots level i.e. entrepreneurs bold enough to start potentially great companies. It aims to connect these individuals with the additional network,knowledge and capital they need to realize their potential.”

VC4Africa started from a group on the social media and connecting platform Linkedin in 2008. It claims to be the largest online community “dedicated to entrepreneurs and investors building companies on the continent.” It is a free service and was founded by “serial entrepreneurs” Bill Zimmerman, formerly of Microsoft in the USA, and Ben White, founding member of AfriLabs (afrilabs.com), a network of technology incubators. Both have extensive experience founding and investing in technology initiatives in Africa.

VC4Africa is sponsored by a long list of well-known names in supporting African entrepreneurs: Acumen Fund (acumenfund.org), Afribiz (afribiz.info), AfricaNews.com, How We Made It In Africa.com, iHub Nairobi (ihub.co.ke), and others.

Consulting firm McKinsey (mckinsey.com) believes Africa’s more than 1 billion citizens should be seen as consumers and says the continent’s growing number of middle-income consumers now outstrips India’s. It boldly claims consumer spending will reach US $1.4 trillion in Africa by 2020, up from US $860 billion in 2008. Ventures that target these consumers could do very well indeed.

The future is looking good for the venture capital model if VC4Africa continues with its successes. Two of VC4Africa’s ventures – BongoLive and Njorku – were hailed by Forbes Africa magazine in February 2012 as top start-ups in Africa.

Founded in 2010, BongoLive is a mobile and SMS services company in Tanzania. Njorku, founded in 2011, is a Cameroonian career and recruitment services platform focused on Africa.

A long and impressive list of African ventures is being supported by the VC4Africa network. Not all will succeed, and they are in very different stages of development, from embryonic to established. The failure rate for start-ups anywhere is always high. But this doesn’t have to be a bad thing. What tends to happen from experience in other countries is this: a buzz is generated as like-minded people gather around a tech scene. They feed off each others’ideas and when one idea dies, it is often feasted on – like a lion on a wildebeest – and becomes the meal for another start-up. Or, the idea is taken on board by a more established outfit.

The dynamic around tech start-ups can seem strange to more traditional business cultures. Tech start-ups tend to be more forgiving of failure and more willing to see all their labour as part of a bigger thing. It is accepted that some ideas will fly, and others will die. It is not a culture heavily laden with the shame that can be associated with more traditional business failures.

Some of the ventures supported by VC4Africa include:

MXit – Founded in 2003, MXit was one of the first Mobile Instant messaging services in the world and in Africa, and has a user base of about 45 million. (South Africa)

Dropifi – Founded in 2011, Dropifi helps businesses better respond to incoming messages via their websites, and also includes analytics for website owners. (Ghana)

FloCash – Founded in 2010, FloCash allows anyone with an email address and mobile number to send and receive money across Africa simply and easily. (UK)

Bandeka – Founded in 2011, Bandeka is an exclusive social network for building relationships/dating. (Ghana and Nigeria)

Motribe – Founded in 2011, Motribe is a mobile platform enabling users, brands, agencies and publishers across the world to build and manage their own mobile social communities. (South Africa)

Hummba – Founded in 2011, Hummba is a social and travel networking website that lets users download free audio travel guides and share travel experiences directly from mobile phones.

10Layer – Founded in 2011, 10Layer is a CMS (content management) system targeted specifically at newsrooms. (South Africa)

Published: February 2012

Resources

1) African Venture Capital Association is a not-for-profit entity founded to promote, develop and stimulate private equity and venture capital in Africa. AVCA is committed to promoting high ethical standards of business conduct and professional competence in the private equity and venture capital industries. Website: avcanet.com

2) Venture Capital Investment for SMEs: Africa Report explores what venture capitalists look for in African businesses.Website: http://www.africareport.com/latest-business-news/2010/10/22/venture-capital-investment-for-smes

3) New book: Africa’s Future: Darkness to Destiny: How the past is shaping Africa’s economic evolution by Duncan Clarke.Website: http://www.amazon.co.uk/Africas-Future-Darkness-economic-evolution/dp/1846685699

4) The Co-Creation Hub Nigeria, a technology innovations center in Lagos, is working to start 30 profitable social tech ventures in the next two years. “The thinking behind CcHub is that the techies should not believe that they can just stay in a corner and create solutions for the market”, says Bosun Tijani, CEO of CcHub Nigeria. “You need to engage the market in the creation process and that is where co-creation comes into play.” Website: cchubnigeria.com