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

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

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

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

Energy, Agribusiness, Infrastructure, Telecom, Media, Tourism, Health, and Stocks

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

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!

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

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

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.

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?

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

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!

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

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

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