India’s Modernizing Food Economy Unleashing New Opportunities

Increasing prosperity in India is reshaping the country’s relationship to its food. A number of trends are coming together that point to significant improvements to India’s long-running problems with food supply and distribution. This matters because India, despite its two-decade economic boom – and increasing middle-class population – is still home to about 25 per cent of the world’s hungry poor, according to the World Food Programme (WFP).

According to Indian government figures, around 43 per cent of children under five are malnourished and more than half of pregnant women between 15 and 49 suffer from anaemia (http://en.wikipedia.org/wiki/Anemia), a consequence of poor diets (WFP).

Many Indians go hungry despite the fact that the country grows enough food for its entire population. The problem isn’t lack of food but a wasteful system that fails to distribute affordable food efficiently and to make participating in the food system a viable income source. Farming employs as much as 70 per cent of Indians. But many work small plots of land, are heavily in debt and earn a meagre income.

However, a number of developments are improving the efficiency of India’s food system and modernizing the way it works.

There are signs that big changes lie ahead: New restaurants exploring foreign cuisines; modern supermarkets; online food shopping services; food academies teaching new skills; food gurus proselytising for new approaches; and a thriving publishing and media sector.

They are creating new jobs, increasing price competition and encouraging more modern delivery, marketing and distribution systems.

In 2011 the introduction of global supermarkets into the Indian marketplace became a hot debate. The Indian government announced it would open the marketplace to global competition and foreign direct investment (FDI), but put the move on hold in December after an outcry by political parties and protests by small- and medium-sized retailers fearful it would harm livelihoods. The Indian supermarket sector is a market estimated to be worth US $475 (The Guardian).

One retailer that is already bringing international methods to Indian retailing is the Best Price chain of wholesale stores. Best Price is a joint venture between U.S.-based Walmart and Bharti Enterprises, one of India’s largest business groups. In 2007, Walmart India made a deal with Bharti Enterprises to set up a cash and carry business called Best Price Modern Wholesale. The first store opened in 2009, and by 2012 there were 15 outlets.

By teaming up with Walmart, Bharti Enterprises gets to learn from one of the world’s leading retailers and a pioneer in efficiencies, logistics, supply chain management and sourcing.

The stores have all the hallmarks of modern food selling – warehouses, sophisticated inventory control, hygienic conditions and connection to new information technologies (http://www.indiaretailing.com/bharti-walmart-II.asp).

Best Price Modern Wholesale employs 3,710 people, and the stores sell more than 6,000 items, a mix of food and non-food products. It claims 90 per cent of the goods and services are sourced locally.

Food is a highly volatile and politicized issue in India. High food inflation – which reached 12.21 per cent in November 2011, according to India’s Finance Minister Pranab Mukherjee – has led to political tensions. Inflation has driven up the price of staple foods, essential commodities and imported products.

At the same time, India’s commerce ministry has forecast that 10 million jobs will be created if foreign supermarkets are allowed to set up in India. Many of these jobs will be in logistics as more efficient, modern methods shake up India’s food industry. Poor logistics in the Indian food sector means that as much as 40 per cent of produced food does not reach consumers. This waste comes at a high cost in a country with 50 million malnourished children.

New jobs are already being created in the country’s restaurant industry.

While there have always been high-end restaurants in India’s cities, the gastronomic scene has received a recent boost from expatriate Indian restaurateurs returning from the competitive London, Tokyo and New York scenes, bringing skills and experience from some of the most demanding kitchens in the world.

One example is Megu, a restaurant in New Delhi’s Leela hotel(theleela.com/new-delhi-megu.html) that sells Japanese-influenced food.

Such cuisine is being called “elite Indian international gastronomy”, according to The Guardian newspaper.

“We are aiming at the affluent traveller or the ultra-rich local,” Aishwarya Nair, a senior executive at the Leela, told The Guardian. “The idea is to give people a taste of globalization. In our restaurant you don’t know you are in India. You could be in New York, Japan, anywhere.”

That appeals to many newly affluent Indians, food critic Vir Sanghvi told the newspaper.

“The food (at somewhere like Megu) doesn’t matter so much as the experience and the glamour,” Sanghvi said. “There is a lot of money outside the traditional elite now and these people are looking for ways to spend it on something that seems sophisticated.”

The new food fascination is also leading families who once would have employed a cook to watch 24-hour TV channels about food. This programming changes habits and encourages buying new foods and exploring new flavours.

Market analysts believe these trends are likely to continue. A middle class with spending power has been growing in India for almost two decades, and forecasts see the number of middle class Indians reaching 250 million by 2016.

“With bigger and better restaurants and international food brands coming in to the country, it’s only a matter of time before fine dining finds its place among a growing cosmopolitan population,” said Siddharth Mathur, manager of the independent Smoke House Room restaurant (facebook.com/SmokeHouseRoom).

Online food shopping in India is also thriving. Research by Juxt found that 65 million people use the web in India, four-fifths of whom shop online. Murali Krishnan, head of eBay India, told the BBC that the country could become one of the top 10 e-commerce hubs in the world by 2015.

Online grocery services include MyGrahak.com, which calls itself “India’s Largest Food Store” and offers home delivery of food, toiletries and pet supplies. Another is Greenytails.com, which brings together multiple food retailers into one online shopping website and is based in Bangalore and Hyderabad.

As an example of the spin-offs that can be created from rising interest in food culture, there is the story of Nita Mehta. Considered one of India’s most celebrated cookbook authors, Mehta (nitamehta.com) not only publishes recipes but also runs a chain of cooking academies.

As she tells it, her interest in cooking was always there and she started experimenting at home with new recipes for her friends and family. The response was encouraging and she started teaching people how to make ice cream in her home. Curious students flocked to her classes to learn how to make flavours like mint, chocolate chip and mocha.

Following on this success, she started teaching classes in baking, Chinese cooking and what she calls “multicuisine”.

The lessons soon turned into a cookbook, which she wrote after doing her household chores. But her battles had only begun: publishers were not interested so she self-published. She called her publishing company Snab Publishers and released her first book, “Vegetarian Wonders”. It was modestly successful but it was with her second book, “Paneer All the Way”, that things got cooking. Her publishing company has now produced 400 cook books and sold 5 million copies. She has won international awards, does TV cooking programmes, has established several cooking institutes in New Delhi and teaches classes in the U.S., Canada, Britain and other countries.

With successes like Nita Mehta, the Indian food revolution is well underway.

By David South, Development Challenges, South-South Solutions

Published: March 2012

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=ok-eBgAAQBAJ&dq=development+challenges+march+2012&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsmarch2012issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Kenya Turns to Geothermal Energy for Electricity and Growth

 

In an effort to diversify its power supply and meet growing electricity demand, Kenya is looking to increase its use of geothermal energy sources (http://en.wikipedia.org/wiki/Geothermal_electricity). Tapping the abundant heat and steam that lurks underground to drive electric power plants offers a sustainable and long-term source of low-cost energy.

Kenya currently gets most of its electricity from hydroelectric projects. This is great until there is a drought, which there now is. With water resources low, the country has had to turn to fossil fuels to power electricity generators. This means relying on imported diesel, which is both expensive and polluting. It is also not generating enough electricity to keep up with demand.

Electricity blackouts have become common in the country and this is harming economic development. This is a particularly damaging setback in a country that has, in the last five years, gained a deserved reputation for its technological advances in mobile phone applications and Internet services – all needing reliable supplies of electricity.

Kenya is Africa’s largest geothermal producer and has geothermal resources concentrated near a giant volcanic crater in the Great Rift Valley with 14 fields reaching from Lake Magadi to Lake Turkana. There are also low temperature fields in Homa Hills and Massa Mukwe (http://www.gdc.co.ke/index.php?option=com_content&view=article&id=191&Itemid=163).

Kenya is expecting its gross domestic product (GDP) to grow by 10 per cent from 2012 onwards. The country hopes to become a middle income country by 2030.

Around 1,400 steam wells will be drilled by companies to meet these goals.

There are also many spin-off opportunities from tapping geothermal heat sources. These include using the steam heat for greenhouses growing plants, for cooling and heating buildings, and for drying and pasteurising foods.

Kenya is currently building a 52-megawatt (MW) geothermal project with funding from the United States government. It is also receiving US$149 million funding from the African Development Bank Group (AfDB) to build the Menengai Geothermal Development Project. This plant will be able to generate 400 megawatts of renewable electricity from the Menengai geothermal sources in the steam field located 180 kilometres northwest of the capital, Nairobi (http://www.gdc.co.ke/index.php?option=com_content&view=category&layout=blog&id=49&Itemid=137).

Speaking at a press conference this month, Gabriel Negatu, AfDB’s Regional Director, said he sees geothermal technology as an important driver of Kenya’s green growth ambition.

“Geothermal generation yields energy that is clean, affordable, reliable and scalable,” he said.

The Geothermal Development Company (GDC) (gdc.co.ke) is a state-owned company in Kenya and recently declared it had tapped steam with a well in the Menengai steam field. GDC started surface exploration in 2009 and has been using two drilling rigs to look for geothermal steam.

The Menengai Geothermal Development Project is slated to be completed by 2016 and will boost the country’s geothermal capability by 20 per cent. It is estimated to be able to power the electricity needs of 500,000 Kenyan households and power the needs of 300,000 small businesses.

Geothermal as a source of energy and electricity can help a country make big development gains. The best example is the Northern European island nation of Iceland. According to Orkustofnun (nea.is/geothermal), Iceland’s National Energy Authority, the country is a successful example of how a small, poor nation (Iceland was one of Europe’s poorest countries in the 20th century), shook off its dependence on burning peat and importing coal for its energy use. By 2007, Iceland was listed in the global Human Development Report as the country with the highest level of human development in the world. And one aspect of this success was the country’s ability to tap its renewable energy resources. Around 84 per cent of the country’s primary energy use comes from renewable resources, and 66 per cent of this is geothermal.

It is estimated Kenya could generate 7,000 megawatts of geothermal power and the Kenyan government is looking to increase the nation’s geothermal capacity from the current 198 MW to 1,700 MW by 2020 and 5,530 MW by 2031.

By David South, Development Challenges, South-South Solutions

Published: March 2012

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=ok-eBgAAQBAJ&dq=development+challenges+march+2012&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsmarch2012issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

African Afro Beats Leads New Music Wave to Europe

A surge in interest in African music in Britain is creating new economic opportunities for the continent’s musicians. The new sound heating up the U.K. music scene is “Afro Beats” – a high energy hybrid that mixes Western rap influences with Ghanaian and Nigerian popular music.

Afro Beats draws its inspiration from the “Afrobeat” sound popularized in the 1970s (http://en.wikipedia.org/wiki/Afrobeat).Afrobeat recordings from that time are still making money as long-forgotten tunes are re-packaged by so-called ‘crate divers’ – enterprising people who rummage through old vinyl record collections and re-brand scenes and sounds.

This is part of the global creative economy, which is thriving despite the recent years of economic turmoil. Musicians offer many lessons for businesses in the South, both in their adaptability to new conditions and their resourcefulness in experimenting with new business models to earn an income.

Afrobeat stars and pioneers like Nigeria’s Fela Kuti (http://en.wikipedia.org/wiki/Fela_Kuti) have been popular outside Africa for many decades. But Afro Beats – a new name with the addition of the crucial letter “s” – is being declared as the beginning of a new phase in taking African music global.

As the digital music revolution has rocked the global music business, artists have had to adapt and change their business models. For all but a very few “big names,” it is no longer possible to build a career on royalties from recordings and hits. Stars and novices alike must battle with music pirates, who sell CDs and downloads of other people’s tunes and keep the money for themselves. Legitimate income often comes in micropayments from large music platforms like iTunes as people pay to download an individual song or mix and match tunes they like from an artist’s catalogue, rather than buying a whole album as they would in the past.

Clever musicians have turned to building their brand, using live performances and the ability to sell other services and merchandise to make a living. They create their own web platforms, or mobile phone apps (applications), and do the marketing and distribution on their own to build a loyal fan base. Others are creating their own mobile radio stations by distributing CDs to the ubiquitous taxi mini buses that are the main means of transport in most African cities.

But some things remain the same as in the past, such as the importance of having a champion, such as a radio DJ (disc jockey), who acts as a “taste maker,” discovering new acts and telling their audience about them.

The DJ most associated with pushing the Afro Beats sound and scene is London-based DJ Abrantee (http://www.facebook.com/djabrantee).

“I’ve been playing this music to three or four thousand people at African events in the U.K. for years,” DJ Abrantee told The Guardian. “For years we’ve had amazing hiplife, highlife, Nigerbeats, juju music, and I thought: you know what, let’s put it all back together as one thing again, and call it Afro Beats, as an umbrella term. Afrobeat, the 60s music, was more instrumental – this Afro Beats sound is different, it’s inter-twined with things like hip-hop and funky house, and there’s more of a young feel to it.”

Abrantee (abrantee.com) promotes Afro Beats in the United Kingdom in myriad ways: he broadcasts six days a week on a radio station, including an Afro Beats-themed show on Saturdays. He travels around to DJ and takes Ghanaian and Nigerian tunes with him. He says Africa is so musically vibrant, he can’t keep up with it all.

“This is specifically the western African sound: there are a lot of shared ideas between these two neighbouring countries,” he explained to The Guardian. “I see Afro Beats as music which makes the heart beat. And it’s funky, and hyped, and energetic and young.”

Afro Beats has also been able to reach a young audience. “It’s striking how young they are – when I do these Afro Beats events there’s thousands of people, and they’re all youngsters, really.”

One of the Afro Beats stars is D’Banj (mohitsrecords.com/d-banj) – a Nigerian rap star – who has been receiving attention for his song Oliver Twist.

The Afro Beats sound is also provoking a new interest in all things African amongst youth with African parents. This is a big change from when American “cool” set the trends. As DJ Abrantee notes, “the parents are really pleased, and proud, that their kids are all of a sudden embracing their culture. It didn’t used to be cool, but now they’re going through their parents’ record collections going, ‘Have you got this old song by Daddy Lumba?’.”

Some of the Afro Beats leaders include Sarkodie’s ‘U Go Kill Me’, Ice Prince’s ‘Oleku’, Atumpan’s ‘The Thing’, Castro ftAsamoah Gyan’s ‘African Girls’.

Afro Beat’s popularity in Britain has led to African artists collaborating with musicians in the UK. Afro Beats musician Sarkodie has collaborated with London-based artists Donaeo and Sway.  DJ Abrantee sees this trend continuing and expanding. “You’re going to see more U.K. artists doing Afro Beats collaborations now,” he said.

Other Nigerian artists who have benefited from the increasing awareness are Wiz Kid, 2Face Idibia and P-Square (mypsquare.com).

Abrantee believes Ghana and Nigeria are having a big impact on the global music scene.

“The floodgates have opened. Music is always evolving, and everyone’s always looking for the next drug. Funky house has died out, grime is still there but it’s gone back underground, electro-pop’s got U.K. urban music in the charts, but that’ll die out, it’s got a short shelf-life. … and people are finally noticing I’m getting 3,000 people coming out to dance to Afro Beats.”

British-Ghanaian hip-hop performer Sway sees connections between Afrobeat and Afro Beats.

“Fela Kuti is obviously a massive legend in the game, and what he was doing is not too different to what D’Banj is doing now – taking western influences and adding them to African culture, and coming up with something new, that appeals to everyone,” he said.

And technology is seen as the binding element that is connecting African music and musicians to other scenes.

“African music in Africa is evolving in relation to what’s going on abroad too,” said Sway. “Via the Internet they’re picking up certain trends much quicker: so for example you have Auto-Tune and western styles of singing cropping up on all these Afro Beats tracks.”

And Sway believes the quality of production of African music has improved: “There’s been a serious change in the music coming out of Africa lately.

“The sound is heavier and clearer, the videos are better, there’s been a positive growth in the African music scene. It was just a matter of time before people paid attention.

“When you’ve got African swag and African traditions combined with up-to-date western styles, and singing in English, well – you’ve got a winning formula on your hands.”

By David South, Development Challenges, South-South Solutions

Published: February 2012

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=5xafMNIQpBcC&dq=development+challenges+february+2012&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsfebruary2012issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Venture Capital Surge in Africa to Help Businesses

Africa’s potential economic powerhouse lies in its small and medium enterprises (SMEs). Foreign direct investment (FDI) into Africa ebbs and flows based on the state of the global economy – and most of it is directed towards large enterprises and multinational companies.

Finding ways to support grassroots SMEs has the potential to truly build in sustainable prosperity for the continent and construct stable middle class jobs.

But building a continent-wide network of investors, and directing that investment at the grassroots business entrepreneurs who employ the majority of Africans, is not easy.

Foreign direct investment to Africa rose fivefold from 2000, peaking at US $72 billion in 2008 (African Economic Outlook). A surge in raw material prices fed this boom. FDI is, however, unevenly distributed and much of it goes to extractive industries like mining and oil and gas in a handful of countries. When the global economic crisis hit, FDI inflows to African countries fell by 20 per cent, to US $59 billion in 2009.

Venture Capital for Africa: Connecting Entrepreneurs and Investors (http://vc4africa.biz), is a free service trying to nurture the SME sector and help entrepreneurs overcome the challenges of funding start-ups in Africa. Members are expected to contribute, collaborate and show their seriousness, bringing resources or their ideas and enthusiasm.

It has a detailed website with a mix of resources available. People can register and connect with others, check out venture ideas and the most popular ones in the past day to month, read about featured entrepreneurs, register as an investor looking for investees, and meet-up with others in their city. This includes expatriate communities in places like Oslo, Norway.

VC4Africa believes its mission is to champion entrepreneurship, and particularly SMEs, as the main driver of Africa’s economic growth. These businesses provide the majority of the continent’s employment and income. And as it says on its website, they offer “hope for a better future.” It is estimated SMEs contribute two thirds of national income for many African countries and are a major source of middle class jobs.

VC4Africa believes “that the most meaningful impact will still come from grass roots level i.e. entrepreneurs bold enough to start potentially great companies. It aims to connect these individuals with the additional network,knowledge and capital they need to realize their potential.”

VC4Africa started from a group on the social media and connecting platform Linkedin in 2008. It claims to be the largest online community “dedicated to entrepreneurs and investors building companies on the continent.” It is a free service and was founded by “serial entrepreneurs” Bill Zimmerman, formerly of Microsoft in the USA, and Ben White, founding member of AfriLabs (afrilabs.com), a network of technology incubators. Both have extensive experience founding and investing in technology initiatives in Africa.

VC4Africa is sponsored by a long list of well-known names in supporting African entrepreneurs: Acumen Fund (acumenfund.org), Afribiz (afribiz.info), AfricaNews.com, How We Made It In Africa.com, iHub Nairobi (ihub.co.ke), and others.

Consulting firm McKinsey (mckinsey.com) believes Africa’s more than 1 billion citizens should be seen as consumers and says the continent’s growing number of middle-income consumers now outstrips India’s. It boldly claims consumer spending will reach US $1.4 trillion in Africa by 2020, up from US $860 billion in 2008. Ventures that target these consumers could do very well indeed.

The future is looking good for the venture capital model if VC4Africa continues with its successes. Two of VC4Africa’s ventures – BongoLive and Njorku – were hailed by Forbes Africa magazine in February 2012 as top start-ups in Africa.

Founded in 2010, BongoLive is a mobile and SMS services company in Tanzania. Njorku, founded in 2011, is a Cameroonian career and recruitment services platform focused on Africa.

A long and impressive list of African ventures is being supported by the VC4Africa network. Not all will succeed, and they are in very different stages of development, from embryonic to established. The failure rate for start-ups anywhere is always high. But this doesn’t have to be a bad thing. What tends to happen from experience in other countries is this: a buzz is generated as like-minded people gather around a tech scene. They feed off each others’ideas and when one idea dies, it is often feasted on – like a lion on a wildebeest – and becomes the meal for another start-up. Or, the idea is taken on board by a more established outfit.

The dynamic around tech start-ups can seem strange to more traditional business cultures. Tech start-ups tend to be more forgiving of failure and more willing to see all their labour as part of a bigger thing. It is accepted that some ideas will fly, and others will die. It is not a culture heavily laden with the shame that can be associated with more traditional business failures.

Some of the ventures supported by VC4Africa include:

MXit – Founded in 2003, MXit was one of the first Mobile Instant messaging services in the world and in Africa, and has a user base of about 45 million. (South Africa)

Dropifi – Founded in 2011, Dropifi helps businesses better respond to incoming messages via their websites, and also includes analytics for website owners. (Ghana)

FloCash – Founded in 2010, FloCash allows anyone with an email address and mobile number to send and receive money across Africa simply and easily. (UK)

Bandeka – Founded in 2011, Bandeka is an exclusive social network for building relationships/dating. (Ghana and Nigeria)

Motribe – Founded in 2011, Motribe is a mobile platform enabling users, brands, agencies and publishers across the world to build and manage their own mobile social communities. (South Africa)

Hummba – Founded in 2011, Hummba is a social and travel networking website that lets users download free audio travel guides and share travel experiences directly from mobile phones.

10Layer – Founded in 2011, 10Layer is a CMS (content management) system targeted specifically at newsrooms. (South Africa)

By David South, Development Challenges, South-South Solutions

Published: February 2012

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=5xafMNIQpBcC&dq=development+challenges+february+2012&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsfebruary2012issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Business Leads on Tackling Violence in Mexican City

The damaging affects of crime and violence can ruin a city. They act as a drag on efforts to increase wealth and improve living conditions, and a city that gets a bad reputation, especially in the age of the Internet, will lose investment opportunities.

The North American nation of Mexico has been struggling against drug and gang-related violence that has left an estimated 47,000 people dead over the past five years. It is a casualty rate worthy of a war.

In Monterrey, the capital of Nuevo Leon state (http://en.wikipedia.org/wiki/Nuevo_Le%C3%B3n), an innovative initiative has brought together local businesses to tackle the root causes of violence and crime. The initiative – called Red SumaRSE, which means ‘joining a network’ – was born from anger and disgust at the situation in the city. And it was ignited by a prominent member of the business community expressing this frustration on the social media outlet Twitter (twitter.com).

The chief executive of the Cemex cement company had had enough one day. Lorenzo Zambrano tweeted a blunt message to other companies in the city: “He who leaves Monterrey is a coward.” It was to be a rallying cry for the campaign to take back the city from the violent gangs.

Monterrey is embroiled in violent drug-related gang crime. Just one incident shows how bad the situation had become. In August 2011 members of the Zetas drug gang torched a casino over a dispute over non-payment of extortion money, killing 52 people.

Law enforcement measures can often only go so far to curb violence in a community. Little impact can be made without addressing the underlying economic causes of much of the violence – poor employment opportunities, drug turf wars between rival gangs, economic instability and more.

“Violence is an expression of social inequality,” Zambrano told The New York Times.

Tragedies like the casino fire provoked the city’s business community to take action. Private companies in the city have stepped up to design and fund a recruitment campaign for the police force and are paying part of the cost for government-backed community redevelopment plans.

Corporate philanthropy in Mexico has a history of being very limited. Apart from distribution of gifts at holiday time,there was little else. But this is changing, with Red SumaRSE showing the way.

“In the last five or 10 years there has been progress both in terms of the quantity of the money and the quality,” Michael Layton, director of the Philanthropy and Civil Society Project at the Autonomous Technological Institute of Mexico, told The New York Times. “But I don’t think Mexico has caught up to Brazil and other countries where the business sector has taken corporate philanthropy to heart.”

The Red SumaRSE alliance of Monterrey’s companies is directing support to non-governmental organizations working on community development. Examples include telephone company Axtel and the tortilla maker Gruma (gruma.com/vEsp) taking charge of 20 other companies to invest in schools, building up infrastructure and reversing drop-out rates.

The Oxxo company (oxxo.com/index.php), Mexico and Latin America’s largest chain store, has started to work at improving conditions in the neighbourhood immediately behind its headquarters. The company is working on building parks, increasing job opportunities and finding ways to prevent teenagers from joining gangs in the first place.

Cemex has also opened a new community centre in a violent neighbourhood where shootings were a regular occurrence. It was based on some Latin American knowledge sharing: inspired by the case of the Colombian city of Medellin, where libraries were strategically located in violent slum areas.

And there is more good work in the pipeline. The business community has drawn up a list of 70 neighbourhoods in the city needing re-development.

Red SumaRSE has not been without its critics. They have attacked the focus on security, education and victims while ignoring corruption, which many believe is the source of many of the city’s problems.

By David South, Development Challenges, South-South Solutions

Published: February 2012

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=5xafMNIQpBcC&dq=development+challenges+february+2012&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsfebruary2012issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.