The African Renaissance 1

The African Renaissance
How venture capital, web 2.0, mobile phones, and informal markets are changing the face of entrepreneurship in Africa

What I’m passionate about
Venture capital
Web 2.0 & Technology
Informal markets

Can GREED save Africa? December 10, 2007 Issue

Why is venture capital hot now in Africa?
Fiscal discipline, and commodities
Inflation is lower and debt ratings are getting better
This has led to bond offerings in the international market. Ex, Ghana, Nigeria
Diasporan's returning and bringing back western management skills

Which Venture capitalist firms are investing in Africa?

Which sectors are ripe for investments?
Energy, Agribusiness, Infrastructure, Telecom, Media, Tourism, Health, and Stocks

Business news coverage of African equities
Reuters Africa
CNBC Africa
Financial Times

Web 2.0, Mobile phones and sustainable technologies in Africa
Some Statistics
African Population 940 million
Internet users of 44 Million or about 5% penetration rate
However, many people can access the internet from their Mobile phone
By the end of 2009, 330 million Mobile phones in Africa or 34% of Africans will own a mobile phone!

The impact of the Mobile phone in Africa
Payment systems
M-pesa, TxtnPay, BSL Limited
Commodities exchange
Tradenet.biz (founded by Mark Davies of BusyInternet Ghana) is allowing farmers in rural areas to communicate via text about latest prices
Has forced state-owned monopolies to privatize telecoms

Web 2.0 & blogs
African sites have moved up the product life-cycle chain
Google sees Africa as an opportunity and is ramping headcount
Blogging is a powerful medium that is allowing and enabling many Africans to voice their opinion
Fiber optics and other broadband technologies are enabling better access to the net

Web 2.0 sites Courtesy of: Erik Hersman ( White African Blog )‏

Communications infrastructure in Africa Source: CTiA Report 2002/03

EASSy Cable, Reliance telecom and other fiber networks Zanzibar Malaba

The real wealth of Africa lies in the Informal markets
What is an informal market?
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 "unregulated by the institutions of society, in a legal and social environment in which similar activities are regulated.

Microfinance is great, but….
How great is Microfinance?
Poverty reduction, economic relief
Kiva, MicroPlace
Others
Is only for “micro” loans
What if you are a small farmer who needs a 100k equipment to harvest your produce?

Mesofinance or Mesocapitalism is the new area for SME's
Using a co-op model I believe Mesofinance can be instituted well
Co-ops own their own equipment and have economies of scale
Ex. Farming, skilled artisans, etc
Can access global capital

Informal markets have ingenuity
There isn’t a Home Depot, Lowes, or Best Buy in the informal market.
So what do they do? They make their own products, what else!

African ingenuity at it’s finest Courtesy of: Erik Hersman ( Afrigadet blog )‏

What I like about each sector
Venture capital
Global capital is agnostic
Don’t just focus on aid…lobby about smart aid and venture capital
Robert Zoelick
Web 2.0 & Technology
Accountability – Ory Okolloh of Mzalendo.com
valuation
Informal markets
They have purchasing power when organized

What I’m working on
African ebay called eNubia.com
I blog about business, technology, venture capital, and social entrepreneurship on Nubian Cheetah http://nubiancheetah.blogspot.com/
Other stuff…invest in one of my projects and maybe I’ll tell you!
Email: nas146@yahoo.com

The African Renaissance 1

by Nii Simmonds on Oct 13, 2008

Accessibility

Categories

Tags

Upload Details

Usage Rights

Statistics

The African Renaissance 1 — Presentation Transcript