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Entries in July 2012 (5)

Thursday
Jun252015

African Innovation Eco-system Taking Shape

 

How to increase the rate of innovation in Africa? And specifically, innovation that actually improves people’s lives and reduces poverty. It is a hard question to answer, but some are putting in place the building blocks of a 21st century innovation culture by riding the information technology revolution as it rolls across Africa.

The transformative story of mobile phones in Africa has captured the attention of the world. Technologies like mobile phone payment systems developed in Africa are now being rolled out around the globe.

But there is more to come as undersea cables increase the communications links between African nations and the rest of the world. New undersea cables including TEAMs, Seacom and Eastern Africa Submarine Cable System (EASSy) (eassy.org) are vastly increasing the continent’s Internet capacity and bandwidth (http://en.wikipedia.org/wiki/Bandwidth_%28computing%29).

These communications links will revolutionize the type and scale of innovation that can happen in Africa.

As websites like AfriGadget (afrigadget.com) amply prove, there is already an entrenched do-it-yourself innovation culture hard-wired into daily life on the continent. While impressively resourceful and able to make the most of often very little, this innovation culture is often confined to a narrow geographical area. And this is the difference the new information technologies will make: They will allow this energetic and resourceful innovators’ culture to develop businesses and business models that can reach beyond narrow geographical parameters.

New technologies will also accelerate the spread of new ideas and solutions.

Across the continent, ways and means are being stitched together that enable people to transcend borders and old divisions and obstacles to connect with like-minded collaborators, seek out funding and take ideas from dreams to schemes and eventually to continent- and world-straddling levels.

According to the Deloitte 2011 East Africa Private Equity Confidence Survey: Promising 2012, “Many investors see East Africa’s strong growth potential as a driver of better investment performance than in South Africa: This is a huge shift in private equity attitudes toward Africa, which have been historically focused on South Africa. East African investment potential is seen as roughly on par with West Africa, where similar growth dynamics are at play.”

Identifying the elements that are making this innovation culture flourish came under analysis in a recent post on the Afrinnovator website (afrinnovator.com). Afrinnovator is dedicated to “telling the stories of African startups, African innovation, African made technology, African tech entrepreneurship and entrepreneurs.”

While it is well known that new infrastructure, better governance, new policies, and new services like mobile phones and mobile money have made a big difference in shifting perceptions of Africa from despair to optimism, Afrinnovator found there were other key ingredients to this innovation renaissance.

Afrinnovator argues there are four elements that have come together to change circumstances for innovators on the continent: education, mentoring and incubators, funding, and showcase events.

Afrinnovator found education was critical to the quality of emerging technological innovations. Information and communication technology (ICT) education has moved from just computer science courses to a vast array of options, from bachelors degrees to masters programmes.

For mentoring and incubators, Afrinnovator found hubs and incubators are providing places for young educated people to go to and get down to work.

Examples include iHub (http://ihub.co.ke/pages/home.php), mLab East Africa (http://mlab.co.ke/pages/home.php), ccHub (Co-Creation Hub Nigeria) (http://cchubnigeria.com/about-cchub/), Lusaka, Zambia’s Bongohive (bongohive.com), iLab Africa (http://ilabafrica.ac.ke/) NaiLab (http://nailab.co.ke/) iBid Labs (http://ibidlabs.com/) and Uganda’s HiveColab (http://hivecolab.org/), among others. These places offer like-minded fellowship and access to mentors to take them on the journey from “idea to viable profitable business.”

According to Business Daily Africa, “There are more than 3,000 software developers who have come up with both mobile and personal computer-based software applications that are changing lives across the continent.”

A transformation in funding access has seen a renaissance in new thinking that is transforming tech start-ups into viable businesses. Kenya has the Kenya ICT Board (http://www.ict.go.ke/) and it awards US $50,000 through its Tandaa grant programme (https://sites.google.com/a/ict.go.ke/tandaa/).

Because of this enthusiastic local support, the World Bank is now committing a US $55 million grant targeting Kenya’s technology innovators to be distributed through the Kenya ICT Board.

East Africa also saw 16 new investor funds launch in 2011 alone. They include early-stage investor funds like eVentures Fund Africa (eVA) (http://www.eva-fund.com/), which calls itself “the first venture capital firm investing in African SME’s active in digital media.” Another is Kenya-based 88mph (http://www.humanipo.com/88mph), with its “focus on startups targeting the East African mobile and web market.”

In Kenya, the World Bank money will be used to help technology developers bring to market simple solutions in health and education.

According to the World Bank (http://tinyurl.com/cm3g2rf), “Kenya has put in place the second-fastest broadband on the continent (after Ghana), which has reduced the wholesale internet capacity prices by over 90% and increased internet penetration from 3% to 37% of the population in the past decade. Today, about 90% of Kenyan adults have or have the use of a mobile phone.”

And the final game-changer, according to Afrinnovator, is “showcase events.”

These events give investors and potential partners the opportunity to meet start-ups and explore their new ideas.

Examples include DEMO (http://www.demo.com/ehome/index.php?eventid=29414&) – which connects the idea people with the money people – and Pivot East in East Africa (http://pivoteast.com/). Pivot East provides 25 technology entrepreneurs with the opportunity to make a pitch in front of investors. DEMO is working with USAID, Microsoft, Nokia and others to launch DEMO Africa in Nairobi, Kenya from 21 to 22 October 2012.

Afrinnovator concludes: “This is the last virgin tech landscape left on the planet. The best time to become a player in the African technology innovation ecosystem is now.”

By David South, Development Challenges, South-South Solutions

Published: July 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=9fRcAwAAQBAJ&dq=development+challenges+july+2012&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challenges-july-2012-issue

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

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

Thursday
Jun252015

African Fuel Pioneer Uses Crisis to Innovate

 

Crisis, as the old saying goes, is also a window of opportunity. And there is one African entrepreneur who knows this better than most. Daniel Mugenga has been on a journey of innovation that has led him to become a pioneer in the emerging new field of algae technologies. The story of how he got there is a testament to the power of using business to both solve problems and make profits.

Kenyan entrepreneur Daniel Mugenga has found a solution to the problem of high fuel costs for the transport sector in his country. He has been making money from turning waste cooking oil and inedible vegetable oil into biodiesel (http://en.wikipedia.org/wiki/Biodiesel). He then discovered that he could boost his production of biodiesel by using marine algae as a source for oil.

According to the body that represents the algae fuel industry, Oilgae (oilgae.com), algae are “plant-like organisms that are usually photosynthetic and aquatic, but do not have true roots, stems, leaves, vascular tissue and have simple reproductive structures. They are distributed worldwide in the sea, in freshwater and in wastewater. Most are microscopic, but some are quite large, e.g. some marine seaweeds that can exceed 50 m in length.”

The U.S. Department of Energy has been investigating algae as a fuel source since 1978, and it is being investigated as a potentially transformative fuel source around the world. His business, Pure Fuels Ltd. (http://www.purefuels.co.ke/), is currently seeking venture capital funding for expansion and innovation. Pure Fuels is “a commercial producer of biodiesel and also manufactures biodiesel processors, which we sell to budding entrepreneurs,” says Mugenga.

The Pure Fuels website educates readers on biodiesel as well as offering opportunities for investors and news updates. Pure Fuels was registered as a business in Kenya in 2010.

The business was born out of crisis: in 2008 there were frequent fuel shortages in Kenya and prices were volatile. That was bad news for Daniel Mugenga’s job, working for a transport company with a fleet of trucks. Rising or volatile fuel prices can destroy businesses in areas like trucking, where the biggest expense is fuel.

Mugenga began to do research into fuel alternatives in the crisis and came upon biodiesel. He then set about training in how to produce biodiesel. A period of testing, trials and research ensued between 2008 and 2010, which enabled Pure Fuels to build confidence they had something that was high  quality. The company started producing 120,000 litres of biodiesel in 2010 and increased production to 360,000 litres in 2011 and 700,000 so far in 2012. In 2011, Pure Fuels had revenue of US $230,000 from selling biodiesel.

“We started off using jatropha oil, but when its price went up it was no longer profitable,” Mugenga told the VC4Africa website blog. “Having invested in the machinery, we switched to the next quickest alternative which is used cooking oil. We source it from several of the tourist hotels along the Kenyan coast.”

Turning to cooking oil for biodiesel at first was a good idea. The company was able to get enough waste cooking oil from Kenya hotels and tourist resorts to meet demand. But as demand rose, the thorny problem of Kenya’s tourism business being seasonal arose.

“For about five months of the year, many hotels in Mombasa temporarily shut down or operate at lower capacity. Of course this is affecting the amount of waste cooking oil,” Mugenga said. This is where algae (http://en.wikipedia.org/wiki/Algae) comes in.

Pure Fuels found a biotechnologist in Kenya to help develop a solution using algae as a source for fuel. While the company is keeping details of its innovation secret, it is currently hunting for investors to help increase the quantity of biodiesel it can make – and in turn, revenues.

Investor funds would be used to import non-edible vegetable oil and also to continue the company’s work on extracting oil from marine algae.

Pure Fuels make a bold statement on algae fuel development: it “may actually be Kenya’s next cash crop.”

Pure Fuels sells several products: there is the biodiesel itself, as well as a processing machine called the GXP-200, which can turn customers into biodiesel manufacturers themselves. The company also builds large, industrial-scale processors that can produce between 1,000 litres and 5,000 litres a day.

Pure Fuels currently sells fuel to truck, bus and tuk-tuk companies, and also operates biofuel stations.

The firm has patented its biodiesel and makes all its fuel go through seven quality checks for purity. An in-house laboratory ensures adherence to international standards, and the company is certified by the Kenya Bureau of Standards (http://www.kebs.org/).

Mugenga is a passionate advocate of biodiesel’s advantages: he believes it is cheaper, and better for engines and for the environment. He admits it does have a disadvantage: it gels below 13 degrees Celsius and must be mixed 50-50 with conventional diesel to stay fluid.

Pure Fuels encourages others to use biofuels for business, throwing in a home training kit with the biodiesel processors it manufactures and sells, complete with DVDs, manuals and a business plan. The GXP-200 biodiesel processor was developed after years of experience, and Pure Fuels hopes it will be bought by people who then set up businesses – especially youth, women and the disabled. As a further incentive, Pure Fuels promises to buy the biodiesel produced. The GXP-200 was recently awarded “Most Innovative Product 2012″ at a small and medium business entrepreneurs event in Nairobi.

In Israel, there are a number of pioneers working on further developing algae as a biofuel source too. Isaac Berzin of Seambiotic (seambiotic.com) sees algae as a good source for biofuel because it does not compete with food crops like other biofuel sources (sugar, potatoes, corn etc.). Algae is among a group of so-called second-generation biofuels that includes jatropha, wood and castor plants.

The disadvantage of plant-based fuel sources is they need arable land and water. This seriously holds back their ability to meet the world’s demand for fuel since they would just take up too much land and water. Algae takes up less space and produces a higher yield per acre than conventional crops.

Seambiotic makes marine microalgae using the CO2 from electric power plant flue gas. It pioneered making large quantities of fuel algae in the United States, creating the first gallons of bio-diesel and bio-ethanol from marine microalgae.

Seambiotic is also working on a US $10 million commercial microalgae farm in China, partnering with China Guodian (http://www.cgdc.com.cn/), one of the country’s largest power companies. Another Israeli company in this field is UniVerve (http://www.univervebiofuel.com/). Its CEO, Ohad Zuckerman, runs the10-person company in Tel Aviv, Israel. It is developing a new biofuel from a special strain of algae that can grow quickly in a wider range of temperatures.

By David South, Development Challenges, South-South Solutions

Published: July 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=9fRcAwAAQBAJ&dq=development+challenges+july+2012&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challenges-july-2012-issue

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

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

Thursday
Jun252015

Indian Entrepreneur Brings Dignity to Poor Women

 

Driven by the revelation that his wife was torn between spending money on milk for the children and buying commercially manufactured sanitary napkins, Indian innovator and inventor Arunachalam Muruganantham embarked on a long and intensive journey to find a solution. His achievement – a simple machine – is bringing dignity to poor women and providing them with a much-needed income source.

This is a story of a man who was considered crazy for his persistence and made many personal sacrifices to achieve his goal. The innovation is both a technological and a business solution. Muruganantham has come up with a simple machine to manufacture affordable hygienic sanitary napkins for poor women. It works by turning the pulp of pine wood into the flat, white sanitary pads (http://en.wikipedia.org/wiki/Sanitary_napkin) commonly used by women during their monthly menstruation. The machine’s simplicity means it can be expanded easily to other communities and is designed to fit well with the way women’s cooperatives work and help them earn an income.

Muruganantham sees it is a business model that “can deliver livelihood, hygiene and dignity to poor women, and help them strengthen society,” according to his website.

The manufacturing process produces the sanitary napkins in just five steps. This simple intervention is revolutionizing women’s health in India by giving them an alternative to using found and unhygienic rags every month when they menstruate.

It took Muruganantham four years of research to create a patented machine that sells for between US $1,332 and US $5,330. It can make 120 sanitary pads an hour. Each one sells for 10 rupees (US 18 cents). By comparison, the multinational company Procter & Gamble sells its product for 30 rupees (US 54 cents) a packet.

Two multinationals dominate the marketplace for sanitary napkins in India: Procter & Gamble and Johnson & Johnson, with the Stayfree and Carefree brands.

Muruganantham’s machine was awarded the best innovation national award by the former President of India, Prathiba Patil, in 2009.

Like many innovators and inventors, his work at first was little understood by others and meant he had to plough a lonely furrow. But his persistence paid off and is now receiving attention from countries across the global South.

Apart from its technological simplicity, the idea is to make it easy for women to form cooperatives and businesses to boost their incomes. India has seen the concept of so-called Ladies Self Help Groups (SHGs) (http://en.wikipedia.org/wiki/Self-help_group_%28finance%29) become more popular as a source of income. One of the problems they encounter is finding a successful business to undertake. The machine invented by Muruganantham is being seen as a good business model for the SHGs to follow. The key is the simplicity of operating the machine, the growing and stable market for the product, and its affordable and competitive price.

Typical businesses that can be set up using the machine can employ 10 women.

Muruganantham set up his main business, Jayaashree Industries (motto: ‘new inventions… small is beautiful’) (http://newinventions.in/aboutus.aspx), after his education was disrupted due to family problems and he took up a job in a welding shop.

At first, he had a difficult time convincing people of the utility of the machine. He enlisted his wife to help with the marketing of the new napkins to nearby women. He says the advantage of his business model is that it turns the making of the napkins into a sustainable, grassroots activity. It provides an essential commodity for poor women at an affordable price, removing middlemen and using a simple, non-chemical technology.

It also cuts down on expensive transport costs by keeping manufacturing local.

Over 225 machines have been delivered to 14 Indian states and also to Nigeria, Ethiopia, Kenya, Uganda, Nepal and Bangladesh.

And while Muruganantham is focused on making the machine a success, he is already looking forward to working on his next big invention. The only question is: what will it be?

By David South, Development Challenges, South-South Solutions

Published: July 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=9fRcAwAAQBAJ&dq=development+challenges+july+2012&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challenges-july-2012-issue

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

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

Thursday
Jun252015

Turning Human Waste to Fertilizer: An African Solution

While South Africa has been free of the racist Apartheid regime since the mid-1990s, the expected boost to living standards for the majority black population has not been as widespread and as quick as many had expected.

One important aspect of lifting living standards is making sure the entire population has access to adequate sanitation and hygiene services. Another is making sure they have access to adequate and healthy food sources. A bright idea based on intensive research is meeting both goals in an innovative way.

According to the Council for Scientific and Industrial Research (http://www.csir.co.za/), some 11 million South Africans have received access to basic sanitation services since 1994 – but 13.3 million still lacked basic sanitation services by 2008.

The Water Research Commission (WRC) (http://www.wrc.org.za/) believes there is a crisis with South Africa’s toilet pit latrines, which are quickly filling up past their original design capacity. WRC’s solution is to turn the human faeces or faecal sludge deposited in pit latrines into fertilizer for farming and agriculture. The Water Research Commission is advocating using the fertilizer either for fruit trees or for trees that will be turned to income sources like paper and fuel.

The WRC’s project and series of experiments are called “What happens when pit latrines get full?”

“Only one third of municipalities have a budget to maintain on-site sanitation,” WRC researcher and scientist David Still told Inter Press Service (IPS). “If pits fill up, all the hard work that was done to address the sanitation backlog will be wasted. Why not use faecal sludge to address the growing problem of food insecurity by planting fruit trees? Or use the sludge to cultivate trees for fuel or paper production?”

Human faecal sludge contains a variety of nutrients, such as nitrogen, phosphates and potassium. The WRC estimates the average person excretes enough human faecal sludge per year to fertilize 300 to 400 square metres of crops.

The big reason people are reluctant to use human waste as fertilizer is because of the pathogens it contains. Spreading this on edible crops is dangerous and it is also a risk to groundwater when it leaches in to the soil.

The WRC conducted research on two sites: Umlazi and Karkloof, both in KwaZulu-Natal, South Africa. They used property owned by the South African Paper and Pulp Industry (SAPPI) and the local municipality.

The first step in the experiments was to bury the sludge in pits and plant crops on top of it. The pathogens were contained using this method and in time died off.

The test trenches were 0.75 metres in depth and filled with different quantities of sludge. Two control sites did not use faecal sludge. The scientists found the sites where the human waste was used saw plant growth and volume increase by “as much as 80 per cent.”

They then tested for pathogens in the soil. This included looking for the eggs of the large roundworm (http://www.nhs.uk/conditions/Roundworm/Pages/Introduction.aspx), a parasite whose presence would be harmful to humans. The site was tested over a period of 30 months, but none could be found.

Tests for microbes at the Umlazi site also found none. The plants were found to have healthy dark green leaves and the trees grew larger with the sludge present.

Researchers also monitored the groundwater around the sites. They found in flat ground and sandy soil there was no impact. In the site with sloping and shallow soil, small increases in nitrate were observed in the groundwater after rainfall.

They concluded the best place to apply this technique is in places that are flat and where the soil is deep.

One local resident, Lindiwe Khoza, was selected to be part of the test. Citrus and peach trees were planted on top of the buried sludge.

She told IPS: “The fruit grows much faster and it seems to be tastier and juicier than fruit bought at supermarkets. We now enjoy fruit from our own garden.”

WRC’s clever solution to these twin problems could help make life much more pleasant in communities still grappling with poor hygiene services, while dramatically improving the health of crops and their yields.

By David South, Development Challenges, South-South Solutions

Published: July 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=9fRcAwAAQBAJ&dq=development+challenges+july+2012&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challenges-july-2012-issue

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

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

Thursday
Jun252015

East Africa to get its First Dedicated Technology City

An ambitious scheme is underway to create a vast technology city on the outskirts of Nairobi, Kenya.

With information technology proliferating across Africa after decades of stagnation and underinvestment, a host of exciting new technologies have had to exist within structures not built for the 21st century.

One attempt to change things is Konza Technology City (konzacity.co.ke), an ambitious project that aims to build the infrastructure to host the companies of the 21st century for Kenya and East Africa. Konza Technology City joins a growing network of technology cities and parks across the global South. If the links between these centres of technological innovation and smart thinking can be strengthened, they have the potential to contribute to exceptional gains in human development.

Konza Technology City will be built on 5,000 acres (2,023 hectares) of land 60 kilometres south of Kenya’s capital, Nairobi.

The lead agency on the US $10 billion project is the Ministry of Information and Communication (http://www.information.go.ke/). The Kenyan government is seeking partners and investors to help with funding the project, whose components include a business process outsourcing (BPO) (http://en.wikipedia.org/wiki/Business_process_outsourcing) zone – where specific business functions are contracted to third party providers. There is also a financial district and a commercial district with office space.

This will be combined with the other side of Konza: hotels, hospitals, a sports stadium and other support services necessary to support a city. The idea is to develop the site over a period of 20 years, with the BPO and IT Educational and Science Park taking up 23 per cent of the site.

Kenya plans to expand its business process outsourcing sector and has been hosting conferences in Europe to gather the best advice. The sector has experienced double-digit growth in the past three years, rising on the increasing capacity brought by new undersea cables like TEAMs, Seacom and EASSy.

The idea is to put in place the building blocks of a 21st century Kenya and to become the leading hub for the whole of East Africa. Kenya has an ambitious plan to become a middle-income country by 2030 (http://www.vision2030.go.ke/).

There is scepticism about large projects in Kenya, with some fearing they will be abandoned before they are finished. But it does seem this project has galvanized a wide community of support. According to IT Web’s (http://www.itweb.co.za/) Ken Macharia, opponents of the project make various arguments. People in the information and communication technologies sector would like to see greater local capacity in place before such massive investment in buildings goes ahead. Others oppose the idea of having a planned city and would like to see things evolve organically. Still others question the government’s capacity to undertake such an ambitious scheme.

According to Macharia, the ‘if you build it, they will come’ argument is winning the day. The scope and ambition of the project has both excited many players within and outside government and focused their efforts.

Macharia even believes the public sector is way ahead of the private sector.

“The government is light years ahead in terms of the vision and drive of developing the ICT sector in the country, while the private sector is trying to catch up,” he said.

Kenya will become the first country in the region to build a technology city. It can look to China for some examples. One is Shenzhen City and its Science and Technology Park (http://www.ship.gov.cn/en/index.asp?bianhao=20). Or Cairo, Egypt’s Smart Village (http://www.smart-villages.com/).

Macharia also says the focus solely on technology is missing the bigger impact Konza can have.

“The city’s concept has financial, educational, commercial and industrial implications, which have not been sold as aggressively as the tech aspect has. Perhaps the better name for the proposed city would be Konza Special Economic Zone, where the key pillars mutually benefit from each other’s presence. Technology, after all, is a means to an end, not the end itself.”

The timing for a place like Konza City is excellent: undersea cables are being placed around and to Africa. The continent was notorious for being the most underserved continent on the planet and is in a furious transition from this information technology wasteland to a potential oasis of prosperity.

The undersea cable projects are promising a bandwidth explosion for the continent of Africa. The WACS cable (http://wacscable.com/index.jsp) is being put in place to link South Africa and Britain, and is due to be completed in 2012. It runs up the West Coast of Africa and will become the first direct connection to the undersea cable network for Namibia, the Congo and Togo.

It will increase South Africa’s bandwidth by an estimated 23 per cent.

Various technology investors, including the search engine giant Google, are also planning to build an undersea cable linking the so-called BRICS countries by 2014 – Brazil, Russia, India, China and South Africa. The cable will also link them all to the United States. The technology group i3 Africa is leading the project (http://www.i3-mea.com/africa/), which should open up 21 additional African countries to the world’s undersea cable network.

Konza Technology City could make Kenya a significant beneficiary of all this new connectivity and bandwidth.

By David South, Development Challenges, South-South Solutions

Published: July 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.  

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