Last November, KPMG and H2 Ventures released a report
listing their fourth annual fintech innovators (‘Fintech100’) comprising 50 established companies and 50 emerging companies to watch in Fintech. The companies are innovation across sector like banking, payments, remittances, spending, artificial intelligence, data management, and insurance.
They noted that China continues to dominate the fintech landscape, with 5 of the top 10 companies on the list. Digital or new banks in the list include Solaris Bank, Nu Bank, and Atom Bank.
Some notable companies on the list;
- ZhongAn (online property insurance)
- Stripe (frictionless financial transactions)
- OurCrowd provides an equity crowdfunding platform for accredited investors to access and invest in Israeli companies)
- Circle (free international remittance via email)
- Xapo allows users to utilize their bitcoins while Xapo safely stores them)
- Future Finance (gives students loans of 2,000 to 40,000 pound, within 24 hours that can be paid over 5 years)
- Coinbase (enables digital currency transactions)
- AfterPay Touch (from Australia gives online shopping users an option to spread purchases across four equal installments)
- Robinhood (free stock trading of US stock and ETF’s)
- Alan (Europe’s first digital health insurance company)
- Bud (enables users to combine bank accounts and get personalised insights from a single source)
- Capital Float (from India provides collateral-free working capital loans to small businesses within 3 days)
- Cuvva (provides short-term, flexible car insurance to consumer groups, including taxi- drivers that range from 1 hour to 28 days)
- Flutterwave (from Nigeria, is in over 36 African countries, enables individuals and businesses to accept online and offline payments)
- GrassRoots Bima (from Kenya matches customers with micro-insurance products – known as WazInsure)
- KredX (from India matches SMEs seeking working capital with investors looking for above-average yield on short-term investments)
- Leveris (banking platform for digital retail banks)
- Riby (Nigeria cooperatives enabler)
- Sensibill (allows bank customers to get their receipts in a few different ways)
- SoCash (addresses cash logistics issues for banks)
- Token (an API banking platform)
- Valiant Finance (an online broking platform for SME’s)
: Also, Jay Palter has a list of 195 fintech influencers
for the year 2018; have only heard of a few – Brett King (who visited and spoke in Nairobi
in January 2017), Yann Ranchere, Elon Musk and Vinod Khosla, but will check out the rest.
Also, the new CB Insights
report on fintech observations and trends to watch in 2018 cites:
- No billion-dollar fintech M&A in 2017
- Chinese firms drove fintech IPOs in 2017
- Europe saw record for fintech investing in 2017, as Asia and the US saw fintech funding recede
- Amazon gets more aggressive in fintech — outside of the US, but Amazon’s US efforts are a far cry from Tencent and Ant Financial’s global fintech forays in China
- The largest deals in 2017 went to companies providing insurance…
- Startups are allowing Chinese investors to access overseas securities and In 2017, Ant Financial’s Yu’e Bao became the largest money market fund in the world
- Banks forgo partnering in favor of fighting fintech with fintech
On Thursday at Strathmore Business School, there was a session to highlight some of the opportunities and challenges for Kenyan companies that wanted to get into the farm export business.
Kenya is known for flower exports, but not so much for fruits and vegetables which can be quite lucrative and are better suited to the climate here. An example was cited that a kilo of dhania (coriander) that sells for Kshs 50 per kilo in Nairobi, can fetch €3-4 euros in Europe.
Export fruits and vegetables
- Know the markets. Buyers have no obligation to buying from Kenyans. Companies have to know how to sell at expos where everyone is selling the same fruits and vegetables.
- Kenyans are known for sending good samples, but the problem that buyers in other countries have with many Kenya companies is that they are later not consistent in quality and quantity of food exports.
- How to identify opportunities and threats in the news; Things like Brexit, earthquakes and climate changes and others like Muslim migration across Europe.
- One can’t venture into exports unless they interact with the government – HCDA, Export Promotion Council, KEPHIS and others like the FPEAK, and the Kenya National Chamber of Commerce & Industry. Also, potential exporters must update themselves on changing regulations.
- How to manage finance when upfront payments are rare, and there are international frauds who take deliveries but don’t pay. Also how to avoid the many fake consultants.
- The biggest challenge in this country is labour, not capital! One solution is shared labour for exporters and farms who can’t employ full-time skilled workers.
- If one is not in charge of their own logistics, they are not in business.
The Strathmore Business School exploring international markets program class takes place early next year and involves two modules: The first will take the class to the Fruit Logistica in Berlin, in February 2018 which is the world’s leading trade fair for the international fresh produce business where they will learn about the packaging, presentation, logistics, marketing. and other business aspects at the fair that had had 3,000 exhibitors from 84 countries and 76,000 visitors this year. Then at module two in Nairobi, they will learn about local production, logistics, local bank and financial options, obtaining global certification, branding, and other aspects of the food value chain. The deadline for applications is December 20.
Friday saw the launch of the Future is Kenya a film designed to lead the promotion of Kenya as a leading trade and investment hub. It is led by the Brand Kenya Chairman, Dr. Chris Kirubi, and draws on corporations and other private sector and government officials.
Through a campaign dubbed ‘WHY THE FUTURE IS KENYA’, business leaders drawn from the financial, technology, service and hospitality sectors celebrated Kenya’s status as an investment hub with the premiere of a specially-commissioned short film and campaign launch at Nairobi’s Coca-Cola Auditorium.
Indian Africa, minorities of Indian-Pakistani origin in Eastern Africa, is a 484-page book with lots of information, charts, statistics and stories of the arrival and enduring impact of Indians in East Africa:
- Almost all Indian traders to East Africa were from the northwest (Sindh) now Pakistan, Gujarat, Punjab, and Maharashtra in India.
- The Indian population in Kenya which fell to 78,000 in 1979 rose once again to stabilize at 100,000, half of whom acquired Kenyan nationality. The demographic resurgence was probably due to donor pressure but also favorable treatment under President Moi who got into a tactical alliance with high society to check the influence of the emerging Kikuyu middle class. Thus in 1986, Indians who had been dispossessed in 1967 returned to manufacturing, by buying out subsidiaries of multinationals.
- Indians are in 80% of industrial sectors and control 90% of business activity in the textile industry through 50 mills and 350 other companies. In the pharmaceutical sector, they control 60%, 80% of the chemical/plastics, 80% of iron business, and 90% of electrical installation ones (French Embassy statistics).
- 25 of the 44 banks are controlled by Kenyan Indians.
- Family business structure: Capital raised stays with the founder (first generation) while the second generation (sons) assume managerial and administrative positions and prepare the business for expansion.
- Business Capital: Most Kenyan Indians businesses are totally dependent on local resources unlike the perception that they get foreign capital – only 5% of 210 entrepreneurs surveyed said they had received such – and this was from expatriate parents in Britain, India, Dubai.
- Business Finance: Bank loans are secondary sources of funding – only 33% had received them, while 67% never had. They have other informal sources of credit such as employer associations to which some Europeans and Africans all benefit – and 32% of interviewees were members of groups like the United Business Association. Suppliers are frequent credit sources for small merchants. To obtain credit, one must demonstrate honesty, good management and present minimum guarantees such as from family members, real estate collateral, and repayment schedule. There is also mutual help within communities on matters of illness, death, or when a business is failing.
- The book has profiles of different types of duka wallahs (traditional shopkeepers) as well as chapters on the settlement and emergence of business communities in Kampala, Nakuru, and Dar es Salaam.
- For Ismailis, health and education are their priority political commitments.
The book, edited by Michel Adam is published by Mkuki na Nyota publishers of Dar es Salaam and the French Institute for Research in Africa and distributed outside Africa by the African Books collective.
Yesterday saw the launch of a book entitled “Youth In Kenya: A Ticking Time Bomb” which is co-authored by a friend. The book looks at the challenge and job opportunities for the youth in Kenya, in terms of incentives, appropriate skills, cost of business, and new jobs for the youth, who one guest described as only interested in watching English soccer matches in the villages.
- Kenya’s education systems was designed by the British to be a source of raw material and cheap labour.
- Education CS Fred Matiangi: No other sub-Saharan Africa has put the resources in education that Kenya has in 50 years, and with 290 technical education institutions, there will be one in every constituency.
- George Njenga: There are over 70,000 skilled Kenyans working in South Africa. It is important to look at the training of teachers, so that they also impact good foundation and lessons to the youth and Strathmore Business School has started on that.
- Jonathan Mueke: There have to be standards in the Jua Kali sector – thousands of people produce hoes (jembes) that won’t dig, and which Nakumatt (a large supermarket chain) cannot sell
- FT Nyammo: We have thousands of available jobs to be done in the coffee, tea, and dairy sectors in rural Kenya, but no youth are willing to do them as they consider them to be menial. Also, the Jua Kali sector provides 80% of employment when the economy is good, and the government should channel incentives there to create more Manu Chandarias! (one of Kenya’s most renowned industrial entrepreneurs)
One of the books’ main authors says he was inspired by media stories from last July, which described the Kenya Judiciary and Ports Authority as being were overwhelmed by job applicants; some had received 80,000 applications for 1,000 jobs advertised and even had stampedes at their offices.
The book was published by Longhorn and sells for Kshs 900 ($10). It’s a non-academic book edited for everyone to read.
Aside from this, last week, the KCB (Bank) Group launched “2JIAJIRI”, a KShs. 50 billion job creation program under they committed to “set aside Kshs.10 billion annually in the next five years towards driving this enterprise development programme over the funds which will be used largely to support small and medium businesses run by the youth.” They hope to “reach 500,000 entrepreneurs (both existing and new ones) in 5 years, thereby creating at least 2.5 million direct and indirect jobs.”