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Future Africa

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 Jessica Berlin is a security and foreign policy expert turned sustainable business and development innovator. As founder and Managing Director of CoStruct, she advises governments, companies, multilaterals, and nonprofit organizations on strategy, program design, and partnership development to tackle global challenges with sustainable, ‘scaleable’ business and technology solutions.
Her work is grounded in 12+ years of cross-cutting experience in foreign policy, security, economic development, entrepreneurship, and tech innovation in Africa, Asia, Europe, MENA, and the US. She is a frequent panelist and keynote speaker on innovation in economic development and security. Her TEDx talk on civic and policy innovation has been described as “brilliant”, “moving”, and “one of the most powerful and inspiring TED talks”. Jessica holds an M.Sc. in Political Economy of Emerging Markets from King’s College London, a B.A. in International Relations from Tufts University, and speaks five languages.
Jessica is a frequent speaker at business, policy, and sustainability events around the world in innovation. This week, she spoke to over 150 young innovators at during African Innovation week. Capital met her at the AU to learn her perspective on innovation in Africa.

Capital: Tell us about African Innovation Week.
Jessica Berlin: African Innovation week is convening technology entrepreneurs from across the content as well as the interactive global entrepreneur community to exchange ideas, network and partnerships.

Capital: What prospects exist for African Innovators?
Jessica Berlin: African innovators have the drive to solve serious problems, in the Western world a lot of resources go to funding talents and projects, companies and products that are improving convenience for customers, they are not solving problems in the community and when we talk about technology, innovation and entrepreneurship, and what it means in the 21st century, It is great that somebody innovates some way that I can play a game online sitting in the bus and somebody finds a way to deliver food in that market but let’s be honest, those companies are not solving the real problems and challenges of our time. The many African entrepreneurs that I meet across the continent, they are and determined and talented and they are solving real problems. I see in the 21st century the potential for African innovators to play a new global leadership role. In my work, as an international and national policy expert the best thing I can do is use my global knowledge, network and experience to help empower, and enable problem solvers and business and technology innovators to grow and expand their subjects profitably. The global economy is about connection and collaboration. I work to enable that and to leverage public sector resources and to de-risk private sector resources to the space.

Capital: Is Africa doing all it can to encourage innovators?
Jessica Berlin: There are a lot of missing links or perhaps missed opportunities right now, that may be bad news but the good news is people are aware and working on it. This is true especially in the public sector, there is increasing awareness that the sector needs to step up and support entrepreneurs. In countries like Ghana and Rwanda, innovators have transformed to impact pro-active public sector engagement creating an innovation friendly entrepreneurial environment. We need country governance across the continent to follow their lead. We need to give a voice to entrepreneurs to help inform policy makers and regulators on ways they can help. There are initiatives that perform outstanding work in the space and we need to amplify those voices and to turn this into relationships and results.

Capital: Do you have any current projects in Ethiopia?
Jessica Berlin: We are launching a new initiative called African futures which is a platform to enable technology and resource transfer and collaboration across the African entrepreneurship eco system. The platform is designed to be locally led by partners in each country. There already are organizations leading technology, innovation and entrepreneurship spaces and local partners in collaboration with them will be a connection point that helps entrepreneurs to obtain funding, to access the best practices, content, training programs and business management systems that can help entrepreneurs because right now a lot of companies and innovators face similar challenges.
African futures will share common knowledge learning, and resources within Africa, and create mechanisms and frameworks to share it across eco system across the continents and also critical points to serve as a connection point between those grass root innovators and innovation spaces and the international donor community that has transferred resources on hand. Much money is being invested in the space and much of them are lost on overheads in duplication of efforts in programs that are not designed for the long term, So creating African futures and leveraging a platform to reach out to entrepreneurs across the continent and then support donors really supports tech-innovation and entrepreneurs in Africa in more efficient, demand driven, locally led and for the long term without accidentally undermining the efforts of local innovators or duplicating their efforts.

Capital: What can we expect from the Africa Future program?
Jessica Berlin: A long term training, locally led implementation, demand driven approach and building bridges both between innovators across the content and between Africa and Europe.

Capital: What are the requirements for supporting projects?
Jessica Berlin: So now, we are looking at partner organizations in each country who can be an implementing partner and we are looking to build partnerships with the government of each country so that they can help us to improve the regulatory environment and to help them create an inclusive and agile eco system. We are looking to start “African Future” firstly in three of four countries and Ethiopia is high on the list as a potential country and the pilot phase runs for two years and within ten years to be in 20 countries across the continent.

Capital: How can we build PPP programs in order to support startups and entrepreneurs?
Jessica Berlin: First, we understand the mentality and speak the languages of the grass roots ground innovators as well as macro level bureaucratic donor and the government side. This is the step to a productive collaboration. You need to understand both sides. It is a matter of connecting the micro and macro actors in the space.
There is often disconnection and we try to work to connect the micro and macro actors in the space, small, agile, innovative, young start up and innovative organizations that have flat hierarchies and leadership structures struggle to be cumulative. So, we help by recognizing the tangible opportunities for collaboration to have a win -win situation with the public sector and donor agencies as well as the start-ups and entrepreneurs. This is the basis of any successful project. Think big but start small, start with a tangible pilot that you can test, be somehow manageable and learn from it, improve and scale accordingly. This is also in our approach. This is the mentality that we need to implement PPP that can build a stronger innovation eco system.

Capital: How can your project, Africa Future support African Union’s Agenda 2063?
Jessica Berlin: The Africa Future platform is completely aligned with the AU agenda 2063,
Though it seems a far in the future, the first round is envisioned for 10 years, we will start primarily in cities, then after the eco system is strong and well equipped in the urban centers we will expand it to rural areas. The challenges we face are not urban challenges. We talk about climate change, urbanization and over population, so one of our agendas, or key priorities are creating mechanisms enable innovation, job creation and digital services in problem solving and to reach rural communities and knowledge, wisdom and connect them to the rural communities to solve their challenges.

Capital: You said that Africa will help Europe more than Europe can help Africa in the 21st century? What do you mean by that?
Jessica Berlin: A strong Africa will create a strong world, this is a very simple but fundamental recognition that the international communities need to internalize. When African consumers have more spending power, this will be good for global business. When African nations form their own development challenges and protect resources, they help fight the climate crisis. We need to work together and learn from each other. The 21st century Africa can help Europe more than Europe can help Africa because African innovators are solving real problems and they are motivated, they are hungry, they exceed European innovation and also are transformative reaching the potential in a way only the Africa innovator can and this can also help Europe as well.

Capital: Is there anything you would like to leave us with?
Jessica Berlin: African countries as well as companies need to step away from competition and move towards collaboration. CFTA is a great step toward collaboration.

PRIVATISATION AND GOLDEN SHARE

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Getachew Beshawred

Ethiopia is embarking upon an ambitious program of the privatisation of some of the largest publicly held companies. Apparently, although there is general support for the policy of privatisation amongst the business community, there is also understandable concern and even opposition to some aspects of the policy and the program especially in respect of Ethiopian Airlines and Ethiopian Telecommunications. I agree that there is no justification (economic or otherwise) for the privatisation of the hugely successful Ethiopian Airlines, but there may be a case for part privatisation of Ethio Telecom. However, this should only be carried out after detailed analysis, careful consideration and after all other alternatives are ruled out. The government should not be troubled by its own self-imposed deadlines. It is better to take time to get it right rather than doing it in a hurry and getting it wrong.
Privatisation is a long and complex process, with many players that have varying and sometimes conflicting interests, which would require careful and wide-ranging analysis of all factors, both financial and non-financial.
Privatisation, in simple terms, is the transfer of ownership of a company from the government to the private sector. The identity of the seller is clearly known. It is one. However, the buyers would be most probably more than one and the initial buyers of the shares may not be the ultimate owners or ‘controllers’ of the company. The new owners could be private individuals, private companies, public companies, associations, trusts, pension funds etc.
In some cases, privatisation could lead to the transfer of ownership to a foreign government which would have serious economic, cultural and security implications.
In the United Kingdom many of the privatised companies in the water, electricity and rail sectors are now owned and controlled by non-UK companies which are either owned or controlled by foreign governments.
‘The energy market is owned by the French Government (in the main), railways are owned by the Dutch Government and Royal Mail is part owned by the German Government, so they are state owned, it is just not Great Britain that owns them’. BBC Question Time audience member 25th January 2018.
Though, there is no evidence that the German Government owns Royal mail, French, Dutch and German Governments do control and own UK former publicly held companies in the water, power and rail sectors. In fact, British Airways is owned by IAG, a Spanish conglomerate which is 20% owned by Qatar Airways. EDF energy which is the UK’s biggest supplier of electricity by volume and which operates several power stations is owned by French EDF Group which in turn is 83% owned by the French Government. Arriva Trains, Wales Trains, Chiltern Railways, Cross-country, Grand Central and Northern Railways are owned by Deutsche Bahn, the majority shareholder of which is the German Government.
For the United Kingdom, a nuclear power, a standing member of the U.N. Security Council and a mature democracy, such ownership should not matter much. However, for a country like Ethiopia it has huge implications, especially in respect of national security, and it has to be handled wisely. Even the UK government was so concerned about such ownership in some of the most critical sectors of the economy, it introduced the concept of a Golden Share. The UK government still holds 49% plus a Golden Share in NATS (National Air Traffic Services).
A Golden Share is a type of share that gives its holder a VETO power, mainly over changes to its constitution and to stop UNWANTED takeovers and mergers. It could give the holder power to block others from acquiring shares in the company from both the primary and secondary markets. Though rarely used this was an effective tool. Other countries in Europe, the Soviet Union and Brazil followed suit. However, the European Union does not allow Golden Shares.
I suggest Ethiopia should also follow suit and issue and hold Golden shares, starting with the possible privatisation of Ethio Telecom. This would be the biggest privatisation so far for Ethiopia and it has attracted wide interest from all corners of the world. Unless proper care is taken it is possible that Ethio Telecom could fall into the wrong hands. To avoid this: –
The government should first consider all options other than privatisation (please refer to my article entitled, Privatisation: Tread Carefully, Capital 6th October 2019)
If privatisation is the preferred option, at it seems to be, sell only 49% or less of the shares.
The government should, if necessary, by legislation, hold a Golden Share in the company which should give the holder wide ranging powers. Yes, this could have a negative impact on the value of the shares. However, it has huge advantages and it is an important tool against unwanted and dangerous takeovers in a hugely critical company and industry.
Most importantly the government should take its time and consult widely. It should not be pressured by self-imposed deadlines. If there are third party pressures on the timing, they should be addressed. As stated above, it is better to take time and get it right rather than doing it quickly at a huge risk of getting it wrong.

Getachew is the Managing Director of GB & Co Limited, Chartered Accountants and Management Consultants, London. He can be contacted at getachew@gbandco.co

BEING AND BECOMING: ART AND HUMANITY

“art… the pursuit of pure beauty can be more political than we think.” CNN contributor, Michael Govan

The concept of this column, Discourse with Dr. Desta, is rooted in utilizing the arts to unpack significant social, cultural and political themes while promoting the role and impact of artists. And while music has been my life long professional realm, my decade plus in visual art in Ethiopia has been profound and always on point. Dereje Shiferaw’s timely solo exhibition, HUMAN BEING, is a vibrant volume of visual questions on humanity. Filled with powerful portraits of the black man floating in colorful naïve cosmos. Dereje reminds us that we are not alone in the universe, regardless of how potent we think we are. The tribal like environ, painted with a free light handed flow, is well suited to his selected medium of watercolor which he uses to paint full circle rainbows, probing insects and all aspects of nature, coexisting. The juxtaposition to the burly black men, drawn in mixed media, may be disturbing to some, however. Why? There is a penchant to not celebrate the humanity of the powerful black man in this post-colonial universe. Part of our problem, not seeing, not valuing, not claiming and not celebrating all that we are and all that we have. Dereje Shiferaw Worku, invites you explore important yet simple questions though the exhibition and on his Facebook page asking, “What subject is more worthy than a discussion about a HUMAN BEING? What is more fabulous than a HUMAN BEING? What does it mean…what is the magnitude…relation to nature?” HUMAN BEING is free and open to the public at Guramayne Art Center in Piassa until November 30th.
Dereje is amongst several woke 21st century Ethiopian artists questioning conditions and destiny in the context of being human and in this current time and in this incredible space where undiscovered flora and fauna abound; where rich and diverse heritage and cultures from animism and ancient manuscripts in monasteries coincide with digital spaces and science centers launching satellites. Yes, Ethiopia’s parallel creative universes thrive, whether we see it-or say it-or not. The role of art in this case, is to therefore help us see; see each other and see ourselves and feel the spirit that exists when we are together. This is Dereje’s 1+1=3 philosophy, in recognition of a higher power always present amongst and within us.
The higher power is not politics, which dominates our daily discourse. Thanks to Dereje we are reminded that we can and do co-exist. I read this apt piece by CNN contributor, Michael Govan that sums it up, “… the pursuit of pure beauty can be more political than we think. Artists are always citizens of somewhere. They are also human, and thus carry the same responsibility that most of our politics, religions and philosophies suggest: that we should improve, not diminish, our lives and the world we inhabit. Great art has, through time, been made in many guises. It has been made as protest and as propaganda, made to disturb and to sooth, made to question and to express. Our increasingly globalized media-driven world brings us closer to many people’s struggles; it also brings us stories, and beauty, from everywhere.”
Though it took me twice the time, I intentionally write less this week in order to give symbolic space for new narratives; fearless voices for peace and love and visual expression in recognition of humanity and my fellow human beings. “Peace is a day-to-day problem, the product of a multitude of events and judgments. Peace is not an ‘is,’ it is a ‘becoming.” His Imperial Majesty Emperor Haile Selassie I.

Dr. Desta Meghoo is a Jamaican born
Creative Consultant, Curator and cultural promoter based in Ethiopia since 2005. She also serves as Liaison to the AU for the Ghana based, Diaspora African Forum.

Strategic Planning 4

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Last week we continued to have a look at questions that are helpful in finding out where our business stands today. Those of you who worked on these sections will now have more information about and insight in your customers and competitors. Meanwhile you are not sure how well your business is doing, and you are looking for some strategic guidance. Earlier you found out that your business is lacking focus and that it is not organised in an efficient and effective way, while some essential skills among your workers are missing. Looking into the questions related to your customers and competition, you arrived at some eye-opening conclusions again. You found out that you don’t know much about who your clients are at all. Sometimes the demand for your products is higher than usual, but for no apparent reason. You also could not foresee any expected developments in your market for the next few years and how to respond to that. You realise that there are quite a number of other businesses in the same sector, but instead of trying to find out more about them, and what their strengths are, you avoid them instead. You do know though that your location is good, in the centre of a popular shopping area. Others sell their products at a cheaper price, but then they are located further away from the main shopping streets. You never seriously looked into your market share, who your main clients are and what the competition does to improve their sales. Your marketing is rather passive, and your sales personnel don’t have much information about the customers.
Next, we will look into the products of the business (e) and the employees (f).
e. The business and its products.
What products or services does your business provide? List them. Are your products and services different from the competition?
Is there a way of differentiating your products and services more, adding value for the customers?
Would this allow you to charge higher prices than the competition?
How do you price your products and services? How are rates calculated? What are customers happy to pay for and what not?
What is the relative profitability of your products and services?
Do you have a good mix of products or do you have too many different items?
Are you a market leader or a market follower?
How do you identify new opportunities for new products and services?
What is your “Unique Selling Point”, meaning those things that make it particularly attractive to the market?
g. The business and its employees.
What training or development programs do your workers follow? List them.
What personal development opportunities do your workers see within the business?
What are the workers’ turn over figures for the business? How does this compare with the competition? Is the situation improving or not? What are the costs for workers’ turn over? Consider each group of workers separately and try to look for some of the least obvious costs.
What performance assessment system do you have in place? How is good performance identified and rewarded?
Is communication between departments and with management encouraged? How?
Are employees encouraged to make suggestions for improvements of the services that the business provides? Or for cost saving?
How do you rate the employees’ morale? How do they rate in terms of team spirit, motivation, belonging, identification with the business and commitment?
Do you have a policy on quality assurance? Do the employees understand how this works in practice and what standards and systems are applied?
When you have completed these sections as well, then you will have gathered a mass of information about the current state of affairs of your business. Next you will need to analyze all this information and match this with the main objectives of the business. You will summarise it, review it and mark relevant points as internal strengths or weaknesses and external opportunities and threats, i.e. make a SWOT analysis.
Next week we will see how to make this SWOT analysis and how this will clearly identify the resources you have available and the external threats facing the business. You will need to consider the implications each item in the SWOT analysis carefully and make a beginning with identifying appropriate strategic options for the future.

ton.haverkort@gmail.com