The African Renaissance 1

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Summary on what is remaking the African renaissance.

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The African Renaissance 1

  1. 1. The African Renaissance <ul><ul><li>How venture capital, web 2.0, mobile phones, and informal markets are changing the face of entrepreneurship in Africa </li></ul></ul>
  2. 2. What I’m passionate about <ul><li>Venture capital </li></ul><ul><li>Web 2.0 & Technology </li></ul><ul><li>Informal markets </li></ul>
  3. 3. Can GREED save Africa? December 10, 2007 Issue
  4. 4. Why is venture capital hot now in Africa? <ul><li>Fiscal discipline, and commodities </li></ul><ul><li>Inflation is lower and debt ratings are getting better </li></ul><ul><li>This has led to bond offerings in the international market. Ex, Ghana, Nigeria </li></ul><ul><li>Diasporan's returning and bringing back western management skills </li></ul>
  5. 5. Which Venture capitalist firms are investing in Africa?
  6. 6. Which sectors are ripe for investments? <ul><ul><li>Energy, Agribusiness, Infrastructure, Telecom, Media, Tourism, Health, and Stocks </li></ul></ul>
  7. 7. Business news coverage of African equities <ul><li>Reuters Africa </li></ul><ul><li>CNBC Africa </li></ul><ul><li>Financial Times </li></ul>
  8. 8. Web 2.0, Mobile phones and sustainable technologies in Africa <ul><li>Some Statistics </li></ul><ul><ul><li>African Population 940 million </li></ul></ul><ul><ul><li>Internet users of 44 Million or about 5% penetration rate </li></ul></ul><ul><ul><ul><li>However, many people can access the internet from their Mobile phone </li></ul></ul></ul><ul><ul><li>By the end of 2009, 330 million Mobile phones in Africa or 34% of Africans will own a mobile phone! </li></ul></ul>
  9. 11. The impact of the Mobile phone in Africa <ul><li>Payment systems </li></ul><ul><ul><li>M-pesa, TxtnPay, BSL Limited </li></ul></ul><ul><li>Commodities exchange </li></ul><ul><ul><li>Tradenet.biz (founded by Mark Davies of BusyInternet Ghana) is allowing farmers in rural areas to communicate via text about latest prices </li></ul></ul><ul><li>Has forced state-owned monopolies to privatize telecoms </li></ul>
  10. 12. Web 2.0 & blogs <ul><li>African sites have moved up the product life-cycle chain </li></ul><ul><li>Google sees Africa as an opportunity and is ramping headcount </li></ul><ul><li>Blogging is a powerful medium that is allowing and enabling many Africans to voice their opinion </li></ul><ul><li>Fiber optics and other broadband technologies are enabling better access to the net </li></ul>
  11. 13. Web 2.0 sites Courtesy of: Erik Hersman ( White African Blog )‏
  12. 14. Communications infrastructure in Africa Source: CTiA Report 2002/03
  13. 15. EASSy Cable, Reliance telecom and other fiber networks Zanzibar Malaba
  14. 16. The real wealth of Africa lies in the Informal markets <ul><li>What is an informal market? </li></ul><ul><ul><li>In economics, the term informal economy (or second economy in the South African context) refers to all economic activities that fall outside the formal economy regulated by economic and legal institutions. It refers to the general market income category (or sector) wherein certain types of income and the means of their generation are &quot;unregulated by the institutions of society, in a legal and social environment in which similar activities are regulated. </li></ul></ul>
  15. 17. Microfinance is great, but…. <ul><li>How great is Microfinance? </li></ul><ul><ul><li>Poverty reduction, economic relief </li></ul></ul><ul><li>Kiva, MicroPlace </li></ul><ul><ul><li>Others </li></ul></ul><ul><li>Is only for “micro” loans </li></ul><ul><ul><li>What if you are a small farmer who needs a 100k equipment to harvest your produce? </li></ul></ul>
  16. 18. Mesofinance or Mesocapitalism is the new area for SME's <ul><li>Using a co-op model I believe Mesofinance can be instituted well </li></ul><ul><li>Co-ops own their own equipment and have economies of scale </li></ul><ul><ul><li>Ex. Farming, skilled artisans, etc </li></ul></ul><ul><li>Can access global capital </li></ul>
  17. 19. Informal markets have ingenuity <ul><li>There isn’t a Home Depot, Lowes, or Best Buy in the informal market. </li></ul><ul><ul><li>So what do they do? They make their own products, what else! </li></ul></ul>
  18. 20. African ingenuity at it’s finest Courtesy of: Erik Hersman ( Afrigadet blog )‏
  19. 21. What I like about each sector <ul><li>Venture capital </li></ul><ul><ul><li>Global capital is agnostic </li></ul></ul><ul><ul><li>Don’t just focus on aid…lobby about smart aid and venture capital </li></ul></ul><ul><ul><li>Robert Zoelick </li></ul></ul><ul><li>Web 2.0 & Technology </li></ul><ul><ul><li>Accountability – Ory Okolloh of Mzalendo.com </li></ul></ul><ul><ul><li>valuation </li></ul></ul><ul><li>Informal markets </li></ul><ul><ul><li>They have purchasing power when organized </li></ul></ul>
  20. 22. What I’m working on <ul><li>African ebay called eNubia.com </li></ul><ul><li>I blog about business, technology, venture capital, and social entrepreneurship on Nubian Cheetah http://nubiancheetah.blogspot.com/ </li></ul><ul><li>Other stuff…invest in one of my projects and maybe I’ll tell you! </li></ul><ul><ul><ul><li>Email: nas146@yahoo.com </li></ul></ul></ul>

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