Monthly Archives: January 2013

Idea Exchange: Opportunities Galore: Blogs, Dust, Eggs, Interns, PhD’s, Oil, Social Media, Weddings

Some open opportunities to apply for; 

(Edit) African Banker Awards: The 2013 African Banker Awards competition is now on. Winners will be selected in categories of  African bank, African banker, best bank (in North Africa, East Africa, Southern Africa, West Africa, Central Africa regions),  retail bank,  investment bank , most innovative bank, socially responsible bank,  financial inclusion award, investment fund/private equity fund,  deal of the year, mortgage bank/product,  and brokerage house of the year. Deadline is 11 March.

African Development Bank: 2013 Internship Programme Session 2 – Provides students with an opportunity to acquire professional and practical experience at the African Development Bank and the Bank with a pool of potential candidates for future recruitment purposes.

Also, the #AfDB’s Regional Integration Dept is seeking junior consultants. Apply now.

PhD Fellowships from the African Economic Research Consortium  for people who have gained admission in 2013-14 to selected universities such as Cornell, Oxford, Ohio State or the Universities of Bonn, Sussex, Newcastle and others.  Apply through these university websites before April 30.  
The African Leadership Academy seeks to  enroll the most outstanding young leaders from across Africa and around the world. Deadline is February 28..

The African Leadership Academy also has the inaugural ‘African Teacher of the Year Award’ to celebrate teaching excellence on the African continent. The final 3 shortlisted finalists will be honored at a gala dinner in Johannesburg, South Africa in October in front of media, the headmasters of 100 of the leading schools in Africa, and other dignitaries. The winner of the award will also win a cash prize of $10,000. Nominate an outstanding African secondary school teacher- by the 31st of March, 2013 to teacheroftheyear_at_africanleadershipacademy.org.

Aga Khan Foundation: International Scholarships – scholarships and loans for postgraduate studies in 2013-14 to outstanding students from the developing world. The Foundation assists students with tuition fees and living expenses only and half of the scholarship amount is considered as a loan, which must be reimbursed with an annual service charge of 5%. Application deadline is 31 March.

(Edit) Anzisha Prize 2013: Has $75,000 in cash prizes for youth entrepreneurs. Details here and deadline for the @anzishaprize is April 1.
BAKE: Kenyan Blog Awards 2013 awards aim to reward and recognize exceptional bloggers creating content in technology, photography, creative writing, business, food, environmental / agricultural, style, politics, corporate, sports, lifestyle, travel, new blog and others.  Deadline is February 1.
Big Brother Africa: BBA 2013 kicks off in May. To qualify, participants have to be above the age of 21 and speak fluent English.
Blackberry: Developers may apply for Built for Blackberry reviews and the $10,000 Developer Commitment before February 18.

(Edit) CNN Multichoice African Journalist 2013 is open to African nationals, working on the continent for African owned, or headquartered, media organisations and with work that has appeared in printed publications or electronic media that is primarily targeted at and received by an African audience. Deadline is 17 April 2013.

(Edit) The 10th edition of Diageo’s DABRA awards is now open. The Diageo Africa Business Reporting Awards will recognize journalists and editors who provide high quality coverage of the business environment in Africa in ten categories including ICT, finance, infrastructure, agribusiness / environment, tourism, best business story, business feature, newcomer, media of the year, and journalist of the year. Deadline is March 15.

(Edit) East Africa Philanthropy Awards: The 2013 EAPA awards from the East Africa Association of Grantmakers is now open for nominations in philanthropy categories for individuals, youth, faith-based, community, social entrepreneurs, and corporate philanthropy. Deadline is 30 March.
Egg Hatching Incubators are being lent to individuals and groups on credit, and with no interest charge. 
Faithful Frames: Win a free wedding photoshoot worth Kshs. 15,000 (~$175). Deadline is  Jan 28.

(Edit) Film Mentorship Program: Opportunity for talented young African filmmakers involved in directing, scriptwriting, production, camera, production design, sound design and editing, to enroll in a workshop where they will meet professional filmmakers from all over the world in September 2013. Details here and deadline is 1 May.

(Edit) The International Academy of Journalism 2013/2014 Fellowship program Journalism in the Digital World is now open.  Deadline is May 3, 2013.

Kings Pool Challenge League: EABL’s Pilsner brand is sponsoring a national pool tournament that runs from 21 January to May 4 2013.
(Edit) The 2013 edition of Mobile Web East Africa  is on later in February in Nairobi. Read more about the event.

Nestlé Prize in Creating Shared Value (CSV) seeks innovative programmes, businesses or social enterprises that innovate with impact in water, nutrition, or rural development. Deadline is March 31

(Edit) PivotEast: The third edition of this mobile startup showcase competition takes place on June 25-26 2013 in Kampala, Uganda, and it is open to  all companies in East Africa including South Sudan, Ethiopia, and Somalia. Competition will be in five categories of mobile finance, mobile enterprise, mobile society, mobile utility, mobile entertainment – and this year companies can submit a product in more than one category. The deadline for entries  is 15 April.


(Edit) Poptech: The 2013 Social Innovation Fellows program. Details here and deadline is 2 April.

(Edit) The Rockefeller Foundation Next Century Innovators Award series is now open. Nominate people or organizations that can win up to $100,000 for solving entrenched social problems. Deadline is February 28

Squad Digital: The digital agency is seeking an experienced digital business director with  knowledge of social SEO, Mobile (e.g. M-banking) 
TAHMO: Design a sensor that measures a weather or hydrological variable (temperature, wind, dust or lightning) and is both inexpensive and robust.  Deadline is 1 March 2013.
Tony Elumelu Foundation: Is seeking companies to place interns with for periods of  8-10 weeks. They should have revenue of $250,000 – $5 million per year and agree to pay for stipends while the Foundation will  cover the cost of recruitment, travel, and accommodation  
Toyota: Dream Car art contest dubbed “Your Dream—The Car of the Future” aims to create an opportunity for children (in 3 categories) —through drawing pictures of their “dream cars” —to develop their interest in cars. Deadline is January 31. 
Tullow Oil: The Group Scholarship Scheme will offer up to 114 scholarships across its countries of operation (10 for Kenya) for the 2013/14 academic year and these can be in engineering & tech., oil & gas economics, business journalism, law, and others. Deadline is 13 February. 
World Bank Africa: Social media internship – apply by responding to the phrase: #iwant2work4africa because..

Kenyan M&A

The Kenya Competition Authority recently approved for several corporate deals to be completed. Some of them were mere rubber stamping formalities, as the deals originated far away or had little in the way of local competition that would compel the authority to intervene. 

They covered a variety of sectors including: 

Agro-Processing
  • (The acquisition of) The flower growing business of Finlay’s Horticulture Kenya by Lamorna
  • (The acquisition of the) Residual business  of Agrifresh Kenya by Finlays
  • (The acquisition of)  Sarkish Flora Ltd by Africa Blooms Limited.
Oil & Mining
– Acquisition of 100% of Cove Energy Plc by Shell Exploration & Production (Thailand) 
– Acquisition of  100% of Dominion Petroleum by Ophir Energy Plc.
– Pacific Wildcat Resources Corporation acquiring 100% of Stirling Capital  (UK) and Cortec Pty (UK)
– Elsewhere, there are new (and controversial) that have been proposed that mandate for local shareholders to own 25% of petroleum companies and 35% of mining companies (read more) 
Money & Finance
  • Acquisition of 100% of Aureos Capital by Abraaj Capital
  • Acquisition of Grant Thornton Kenya by PKF & Associates (which continues to be in an expansion mode even after taking over DCDM)
  • (The acquisition of) Additional shares in Pan Africa Insurance Holdings by Hubris Holdings
  • Acquisition of Credit Reference Bureau (Holdings) Limited by Transunion Netherlands (part of the credit giant Transunion
  • 62.52% of Micro Africa by Letshego Holdings (of Botswana)
Tourism
  • (100%) of  Ol-Seki Ltd by Hemingways Holdings
Manufacturing & Engineering
  • The acquisition of selected assets of Raffia Bags Kenya by Polycem Bags
  •  The acquisition of 62% of Civicon Ltd by Transcentury Engineering & Contracting
Service
  • The acquisition of 75% of Nairobi Java House by Emerging Capital Partners Africa Fund III. The deal won the AI  deal of the year  award and last weekend was featured on the Citizen TV piece called Who owns Kenya  (video)

Others

  • Shoden Data Systems (Proprietary) by Hitachi Data Systems Europe (a sub-Saharan territory deal)
  • Kingfisher Properties by Mahesh Sanghrajka & Aasheet Sanghrajka.
  • Centro Suburb Ltd by  Westlands Triangle Properties

On-Going

Following on three earlier deals: 

  • Barclays & Absa are back in the news, six years later
  • The shareholders of three bottling companies in Kenya have agreed with a Coca Cola  plan to merge them under a single company Almasi, with one board of directors and CEO and cut other costly production redundancies
  • No word on Kenol. 

 

In the News

Other ongoing deals, yet to be concluded include: 

Money & Finance

  • Deloitte East Africa merging with Haile Solomon & Tekeste (Ethiopia)
  • The I&M Bank and City Trust deal
  • I&M Bank Limited buying 55% of Banque Commerciale du Rwanda
  • EcoBank Kenya pursuing an undisclosed local investment bank
  • UAP Holdings pursuing an undisclosed Tanzanian insurance company

Other

  • Australian firm Aviva Corporation (Australia) selling stakes of Kenyan subsidiary to Africa Barrick Gold (ABG)
  • Copy Cat buying 51% stake of Seal Africa
  • Low cost airline, FastJet which took over the routes of Fly540 in Kenya and Tanzania, also plans to take over the collapsed operations of South Africa’s 1-time airline for $0.12
  • The Woolworth – Deacons deal    

Kenyan Consumer Guide on Solar for Homes

Kenya is currently the largest market for solar home systems on the African continent and second-largest in the world, after China, by both annual sales as well as the total installed base. The Kenyan solar home system (SHS) category is considered the most competitive by far, and due to its history and heritage, one of the most developed, albeit primarily in the informal sector.  Today, there are over 350,000 solar home systems across Kenya and the market is still growing at more than 15% a year.
What does this mean for you, the consumer?
 Variety of solar options for rural households
Choice:  With so much to choose from and new products, services, and business models being launched, how can you evaluate what kind of solution would work best for your household needs?
Not only is there something for every budget but big names such as Safaricom, Total, Dayliff (Davis & Shirtliff), Sollatek and the IFC with its “Lighting Africa” initiative, all have something to offer.  Do you go with the brand that is backing the product or do you evaluate the category of product and its suitability for your home?
Let’s start with what are the categories of  “solar products” and then take a closer look at each brand’s offerings.  The products available in the market can be clustered broadly into the following:
1. “SHS in a box” or “Lighting kit in box”
2. Stand-alone solar lanterns
3. Emerging “pay as you use” business models
4. Solar home systems (SHS)
1. “SHS in a box” or “Lighting kit in box”:  Today, complete kits like the one shown below are available in certain electrical shops around the country. This particular one, sells for somewhere around Kshs 15,000 (~$175)  and includes a motion sensor security light as well all the components required for installation.
They are available in three main sizes;  small, medium and large – but keep in mind that since brands like these are social enterprises, they are aimed at the lower-income demographic – and the 15W kit shown above is the ‘Large’ size but is limited to providing only lights, and will not be able to power a television set or a stereo system. Note that the battery is not included. Depending on the brand, expect to pay around Kshs 4000 to 6000 extra.
An alternate type of kit is the Phillips one shown below, meant for middle-class urban homes as a backup for electricity power cuts.  Available at selected Nakumatt supermarkets for Kshs 6,000 ($70), this is one of the most expensive backup solar light kits in the market,  however, the elegant design and details such as a wall-mounted light switch make it an attractive option for the upwardly mobile home.
Advantages and Disadvantages
Philips kit
The advantage of this type of complete kit is that all the components are ostensibly designed to work seamlessly together and everything necessary to the system up and running is available in one box.  This approach addresses one of the biggest challenges with SHS in Kenya which is the dearth of well-trained fundis (technicians/installers/repairmen) with the experience and knowledge of designing a solar home system.
The disadvantage of such a system, however, is that it is limited to the components provided, in that one cannot simply add on and build a larger system. Some of the best-provided homes in off-grid rural locales have extensive installations built up over time to power their entire homestead and numerous electrical appliances – so when choosing what kind of system to purchase, keep your future needs in mind.
2.  Solar Lanterns:
Total sign

Due to donor-funded support from institutions such as the IFC, whose Lighting Africa initiative offers market research information as well as quality audits on products, the Kenyan market is flooded with a large variety of solar lanterns, both with the ability to charge your mobile phone and without.

Total, for example, distributes d.Light’s solar lanterns at its retail petrol stations, while Nakumatt picks and chooses which products it will carry according to the needs of the location their outlets serve.   The basic light sold at Total costs Kshs. 999 ($12)  while the larger model which allows you to charge your mobile phone as well can go for upwards of Kshs. 3,000.
Powerpoint at Twiga

Given the wide variety and choice available in the Nairobi market, one can choose according to design and price as per one’s preference.  However, these solar solutions are limited to a single light and the vast majority of products tend to have the panel either embedded in the light source or attached to it permanently, limiting their flexibility.

Powerpoint’s outlet in Twiga Towers is one of the few reputable solar specialists specializing in serving the needs of urban Nairobi’s market.  As you can see, the range of solar lighting and solar lanterns offers something for everyone.  If you’re thinking of something solar for your household, that’s a great place to start your fact-finding trip.
Tough Stuff
 Here, ToughStuff’s ecosystem of products built to work independently around a durable solar panel – available at Nakumatt – offers you flexibility in terms of whether you want only a lightweight portable mobile phone charging solution or if you’d prefer a light or both.
3. (Pay as you go) Mobile Business Models for Solar products: With Safaricom’s launch of the M-Kopa business model, customers now have the choice of paying for a solar product using M-Pesa over an extended period of time. The solar light is from d.light such as that available via Total.  Their kit contains 3 bright lights and a mobile charging system, similar to the “Kit in a box” described above.  The business model is designed to automatically deduct Kshs 40/= ($0.47)  from your account in order to use the lights until the point where you own the system. Alternatively, the complete kit can be obtained for Kshs. 15,000 ($175) upfront.
Another is Eight19’s Indigo pay as you go solar that seems to be piloting in Kenya. Here they use vouchers or scratch cards to top up your charge rather than directly via the SIM card. This is however still in the pilot stage as the company websites do not yet show a Kenyan outlet.

4. Solar home systems (SHS): Known colloquially in upcountry locations as “sola”, the basic SHS consists of a solar panel, a battery for holding the charge,  between 2 to 4 fixtures for holding energy saver bulbs (known informally as “solar lights”) and the requisite wiring.  These kits can cost as little as Kshs 10,000 ($118)  including installation and tend to be the starting point for many homes seeking modern energy systems.

From here, one can build up to including inverters and larger panels such as the 100W-120W kits popular in Maasailand, can power flat-screen Sony Bravia televisions, kitchen appliances and the latest stereo systems in addition to lighting the home inside and out.  Colour television and new digital systems require 60W at a minimum in order to work. Such panels alone cost around $200 upwards but prices are very rarely displayed and often negotiable.
For a household in Nairobi,  an SHS  would be the first recommendation. Dayliff is probably one of the most credible brand names, as long as the technology is German. (Be sure to check the back of the panel to ensure this).  Ubbink is a newly launched brand that fundi’s consider to be efficient and high quality. It is manufactured by a Dutch company establishing Kenya’s first solar panel factory in Naivasha and their panels are smaller than average offering higher wattage and more affordable cost due to lack of import duties and transportation. Check them out. Its a commonly held fallacy that the physical size of the panel is important.
Do’s & Don’t’s on How to buy an SHS:   (also applicable to the other options above)
 
* Do find a reputable fundi with references and experience in calculating your power requirements and designing the requisite home system. This is the biggest reason for customer unhappiness with the performance of solar energy.
* Don’t try to talk to all and sundry and make up a list of components yourself. This is another major reason for inadequate systems that fail to meet customer needs.
* Do your homework, however.  Nairobi’s CBD is the heart of the solar power industry for the entire country and the latest products are seen here first.
 * Don’t go window shopping without a list of minimum requirements on what you wish your SHS to be able to power and for how long.
* Do have an idea of your estimated budget. For a 3-bedroom house in  Nairobi, it’s possible to start as low as $500.
* Don’t let the salesman confuse you until you simply give up and plunk down the money for the nearest panel.  Take the time to think over what you really need to purchase.
* Do keep in mind that SHS are modular and an experienced fundi can help you figure out your starter kit on which you can keep adding over time as budget permits.
Photo and market research courtesy of @nitibhan

Urban Inflation Index December 2012

Five years after the last election that derailed Kenya’s image as stable economic regional powerhouse, it’s political season again with just two months to the next general election. How does the cost of living compare to a year ago and three years ago? 
Gotten cheaper
None really
About the same 
Fuel: A litre of petrol is Kshs 112.6  (~$5.96/gallon) – compared to Kshs. 124 a year ago and 83.5 three years ago. The government controlled price of petrol (as well as Diesel at 105.7 and kerosene at  86.4) somewhat  mirrors the international price of  murban crude oil ($111.8 in December 2011, and $76.1 in December 2009)  rightly shifting the discussion on price controls  to other areas like the high price of cargo transport within Kenya and the East Africa region (about the same price as shipping from Asia or Europe) and the impact on local good prices.
Beer/Entertainment: A bottle of Tusker beer is Kshs 180 (~$2.10)  The price of beer is more expensive than 140 3 years ago, but it seems to have stabilized with the influx of beer and other alcoholic companies capitalizing on the affluence’ or consumption habits of urban Africans and  companies like Martini, Jameson, Heineken, Smirnoff, Castle and Pepsi bottling in Kenya, are now doing their own marketing, distribution and extravagant event promotions. 
Martini mixing session  at the Tribe Hotel
Staple Food: A 2kg pack of Maize flour, which is used to make Ugali that is eaten by a majority of Kenyans daily costs Kshs. 107. This compares to 113 a year ago and 83, three years ago. 
Other food item: A 2 kg. pack of Mumias sugar pack is Kshs 250. This compares to Kshs. 375 a year ago and Kshs. 200 three years ago. It’s unclear if the COMESA exemption for Kenya will continue, which limits the amount of regional sugar that can be imported at lower tax rates, but the country has attracted interest and an investment from a large Mauritius producer into a private sugar company at Kwale.
Communications: These are largely unchanged though there have been modest increases in the costs of mobile money transfers (Safaricom’s M-Pesa), internet data (Orange) and call rates (Airtel, Essar) . 
At the release of Safaricom’s half year results  about a month ago the company Chairman declared that there had been a recovery (end) from the damaging price wars as they recorded an increase in their half year pre-tax profits of 113% to about $135 million with M-Pesa now accounting for half their non-voice revenue. However , the Kenya government now seems intent on latching an excise tax on mobile money transfer transactions – bumping up that cost for users. 
More expensive

Foreign Exchange: 1 US$ equals Kshs. 86 compared to 84 a year ago and 75.6 three years ago. This is expected to dip even further given Kenya’s low exports and growing debt and deficits with new government structure. 
Outlook: 

It’s likely that by the next quarterly review, Kenya will have had a successful general election with a clear winner or be facing international sanctions for electing accused war criminals or have a close disputed election that may lead the country to disintegrate like in 2008 or be preparing for a second run-off round of Presidential elections. Regardless of these  scenarios, the next quarter will also see the country emerge with a larger, more expensive government with new levels  of administration and devolved authorities – as a result of the constitution adopted in 2010.