Category: LOCAL

By Kenny Nwosu, Chief Executive Officer, Norsad Capital

When we think about the impact that private credit and other forms of financing have on African companies, we tend to think about things like business growth and success. But the impact that private capital in particular has goes far beyond that. Utilized properly, it can have an incredibly powerful and positive effect on the lives and livelihoods of ordinary Africans.

That’s true not only when it comes to things like job creation. Private credit in the right sectors can make it that much easier for Africans to get to their jobs, seek out healthcare, and to have permanent, affordable energy, and many other things.

That’s especially true in cases where the private credit provider has a social impact remit and is aligned with things like the United Nations’ Sustainable Development Goals (SDGs).

The power of private credit in the African context 

Before taking a deeper look at how big a positive impact private credit can have on African lives and livelihoods, it’s worth understanding what exactly it is and why it’s so powerful in the African context.

In essence, private credit involves non-bank lenders providing loans to companies. While these companies vary in size, they’re typically focused on small and medium-sized businesses or those that aren’t suited to equity investment.

That’s particularly important in the African context, where there’s much less equity-style investment available in certain sectors and where that kind of investment isn’t always suitable to a company’s needs. In terms of available investment, the tech startup space provides a useful benchmark. Despite African startups achieving USD2.1bn in VC funding in H1 2023, that’s still a fraction of the USD 85.6bn in H1 2023 raised by US startups over the same period (which was 46% down on the previous year).

It’s also true that some companies aren’t suited to the kind of accelerated returns that equity-style investors look for. Private credit providers, by contrast, are able to take a more long-term approach, meaning that the companies who receive the credit are able to grow at a more sustainable pace.

Improved impact through collaboration  

That, in turn, means that they have more time to have a tangible impact. We’ve seen this first-hand with our own portfolio companies. With just over USD235 million in assets under management (USD56.5 million was spread across 13 companies in 2022.), we’ve helped those companies touch the lives of tens of millions of people. In fact, by the end of 2021, 35.5 million lives had been positively impacted, which is just over a third of the 100 million people we hope to impact by 2030. Our partner portfolio companies also supported 15 142 jobs in 2022, with 43% of these held by women and 20% by the youth.

We’re not the only ones having that kind of impact either. Take TLG Capital, for example. Its Africa Growth Impact Fund (AGIF) provides open-ended credit fund investing in sub-Saharan Africa with superior risk-adjusted returns and a multifaceted high social impact. In line with this, the Funds aims to meaningfully contribute to women’s economic empowerment and influence. As a result of its efforts, TLG AGIF, now fulfills the 2x Challenge Criteria 5 – Investment through Financial Intermediaries. In healthcare, one of the companies has distributed over 284 million EU-compliant medications since 2020 across some of Africa’s poorest countries, another has manufactured medication for over 1,000,000 Ugandans currently receiving HIV treatment.

But we also recognise that impact can be strengthened through collaboration. That’s why we inked a partnership deal with TLG Capital in December 2022. The partnership allows both of our companies to enhance the impact our various portfolio companies have, thanks to strengthened sharing, presenting, and co-investing in well-structured credit investment opportunities.

It’s a collaboration that is already proving its benefit and is something we hope to see happening more frequently across the continent.

Driving sustainable development 

Ultimately, it’s important to remember that Africa has so many of the right ingredients to become a global economic superpower. It has a young, increasingly well-connected population with high proportions of entrepreneurs. But it also has a unique opportunity to take a sustainable development path as it heads towards that pinnacle.

One of the most powerful tools available when it comes to the continent reaching that point is private credit. When an organisation provides that credit with a social impact remit, it can help companies grow at a natural pace and in a way that allows them to maximise their own impact.

But if we want private credit to play the role it has the potential to, then it’s imperative that players in the sector foster a sense of collaboration and work together to provide the most positive possible impact on the lives and livelihoods of ordinary Africans.

BK Group has reported a 30.3 percent jump in half year net profit to KES4.4 billion, driven by a strong growth in interest and transactions income.

The Rwanda Stock Exchange and Nairobi Securities Exchange-listed lender reported a 22.5 percent growth in total revenue to KES12.9 billion, reflecting a strong performance of its loans book and non-funded income.

The Group kept its operating costs in check, registering a 15.6 percent growth to KES5.2 billion.

“BK Group Plc exhibited an impressive performance in the first half of 2023 that not only underscored the economy’s resilient rebound but also highlighted significant strides in enhancing asset quality and bolstering profitability. Notably, the Group achieved a commendable year-on-year net income growth, paralleled by substantial growth across all key performance indicators, solidifying its position as a robust player in the market.” said BK Group CEO, Béata U. Habyarimana.

She noted that all the Group’s businesses, including the banking, insurance and investment units all reported strong growth in the period.

BK Group’s flagship business, Bank of Kigali, maintained a strong performance, outperforming its Rwandan peers in the first six months of the year based on key industry parameters such as growth in total assets, net loans, client deposits and shareholders’ equity.

Total assets grew by 16.1 percent year-on-year to KES228.5 billion, net loans increased 4.4 percent to KES138.5 billion while Client balances and deposits went up 21.5 percent to KES140.7 billion.

“Total interest expenses decreased by 6.0 percent to KES2.9 billion due to a decreasing cost of funds, resulting from fruitful efforts to mobilize cheaper deposits,” said the Bank of Kigali CEO, Dr Diane Karusisi. “Asset quality is generally improving with the Non-Performing Loans ratio and Cost of Risk maintained at 2.3 percent and 2.0 percent respectively in the first half,” she added.

Bank of Kigali’s QUICK NOW has registered 85,534 customers and disbursed over KES445.7 million as at June 30th, while the IKOFI wallet has registered over 1,853 agro-dealers/agents and on-boarded over 264,184 farmers.

BK General Insurance recorded a profit of KES204.8 million in the period, an increase of KES12 million, supported by a 30 percent year-on-year growth in gross premiums.

BK TecHouse reported 29 percent revenue increase to KES88.9 million, while BK Capital’s net operating income rose 96 percent to KES90.6 million.

By Ifthakaar Shaik, Co-founder of Vitruvian Medical Diagnostics

The African healthcare industry faces an immediate challenge: a dire shortage of skilled professionals, leading to alarmingly low doctor and nurse-to-population ratios in many countries. Training medical professionals, especially specialists like pathologists or oncologists, is a multi-year long process. Moreover, foundational education at the primary and secondary levels is crucial to supply tertiary institutions with a stream of candidates equipped with the necessary aptitude, literacy, and numeracy skills to pursue medicine.

Recent technological leaps catalysed by the COVID-19 pandemic and expanding telecommunications infrastructure, including ventures like Starlink, have bridged some of the distance between communities in need of medical services. Telemedicine offers those with limited physical access to healthcare professionals a chance to benefit from their expertise. Still, the scope of what can be accomplished via a video call is limited. Accurate diagnoses are particularly challenging. Medical professionals rely heavily on information relayed by patients or, in the best-case scenarios, by lesser-skilled colleagues following instructions remotely.

Compounding these issues, Africa grapples with a healthcare brain drain. To shore up shortages in their own healthcare systems, “developed” markets actively poach African healthcare workers, further depleting the continent’s medical resources.

It’s within this landscape that artificial intelligence (AI) emerges as a revolutionary force in healthcare. Its precise deployment can literally mean the difference between life and death in underserved areas and can dramatically reduce healthcare costs in the neediest markets.

Creating an onramp for usage before reaching the AI tipping point

AI’s promise in healthcare is undeniable. However, this potential can be wasted if we fail to bridge the divide between the digital realm and real-world applications. The most groundbreaking healthcare software becomes moot if not pragmatically integrated into devices used on the ground.

Our journey at VitruvianMD illustrates this challenge. Though our primary focus is healthcare, AI remains our foundational tool. One significant motivation behind our company’s inception was to address the skill shortage in pathology, an essential but understaffed field in Africa.

Our initial target was malaria. In 2021, malaria claimed around 593,000 lives in Sub-Saharan Africa, accounting for 96% of global malaria deaths. Initially, it seemed that AI could assist in addressing this problem, however, as our company development progressed, it became evident that we needed tangible means to bridge the gap between AI’s theoretical benefits and practical implementation. Collaborating with experts, we merged AI with biomedical engineering, creating a universal-fit microscope camera. Equipped with cutting-edge software, this camera provides users with detailed analyses of their samples.

Taking this integrated approach, and by working in partnership with the medical community, we were able to develop tools addressing not only malaria but other conditions that benefit from timely pathology services.

We’re even moving towards a space where even non-pathologist medical professionals are able to accurately analyse samples. Additionally, pathologists could soon be able to remotely analyse samples.

AI can fill skill voids and reduce costs

This is no small gain. In transit, a lot can go wrong. A blood sample could become contaminated, be sent to the wrong place or not arrive at all. By providing on-site testers with enough information to either make a diagnosis or communicate what they receive to skilled personnel in a different location, we mitigate the transport risk inherent in a region with such a low pathologist-patient ratio. This doesn’t even factor in the everyday infrastructural obstacles that patients throughout the continent grapple with.

Removing these kinds of obstacles results in quicker diagnoses and decreased expenses throughout the healthcare process. These benefits can then be directly utilised to enhance patient care at the point of service. In severe circumstances, a delay in pathological diagnosis, for whatever cause, could mean the difference between life and death for a patient.

Additionally, by enabling those who are not pathologists to perform tasks within pathology, the camera and its accompanying software assist in bridging a significant skills gap. As it stands, there is only one pathologist for every million people in Sub-Saharan Africa. However, this statistic is somewhat skewed, with the majority of these pathologists being based in South Africa.

The forthcoming decades will witness AI’s transformative impact on healthcare. As we stand on the precipice of this revolution, it’s evident that the integration of AI into healthcare will shape its future, promising substantial benefits for Africa and other developing nations.

Over the next two to three decades, AI is poised to revolutionise healthcare in ways we can only begin to fathom now. At present, we’re merely glimpsing the tip of the iceberg in terms of AI’s potential in this sector. The nexus between the future of healthcare and AI integration will be indomitable. Particularly, African nations and other developing regions have a golden opportunity to reap substantial benefits from these advancements

By Ololade Odunsi, Talent Acquisition Lead at Founders Factory Africa

After years of growth, the global technology sector entered a downturn in the second half of 2022, thanks to a combination of inflation, rising interest rates, and faltering supply chains. As a result, companies that just months before hadn’t been able to hire fast enough suddenly had to shed jobs en masse.

In fact, Crunchbase estimates that there have been nearly 160,000 layoffs among US tech companies so far in 2023 (in addition to the 93 000 that were lost in 2022). In Europe, meanwhile, tech startups laid off some 40,000 workers between March 2022 and March 2023.

Many of the companies behind these layoffs also have operations in Africa, meaning that the continent hasn’t been spared the impact of the global tech downturn. With funding and investment now more difficult to come by, the worst may not be over either.

But that doesn’t mean skilled African tech ecosystem workers can’t build the resilience necessary to ride out the current downturn and come out the other end thriving. Whether they do so by expanding their skillsets, starting their own businesses, or (for those who remain employed) finding new ways of adding value to the companies they work for, it is possible to acknowledge the very real difficulties of this period while also seeing to the potential for new opportunities.

Growing out 21st Century skills

One of the most important things any tech worker can do right now is build out their 21st Century skills. That’s been important for a while, especially as linear career paths become less and less common. A few years ago, for example, someone might have started out in the product operations team of a company before becoming a product specialist, product manager, and then head of product. While that occasionally does still happen, an employee may be asked to fill different roles in their time with a company and develop skills accordingly.

But developing diverse skills is even more critical if you’re looking for a new position (or are likely to be in the near future). More particularly, tech workers should look to build the most transferable skills possible.

For candidates looking for work, those transferable skills mean a much wider range of potential positions. Those that are still in employment, meanwhile, can fill another position within the organisation if theirs is no longer tenable.

Be entrepreneurial

At the same time, developing an entrepreneurial mindset is important. For some workers that may mean starting their own business. And there certainly isn’t any shortage of available inspiration on that front. Some of today’s biggest tech companies, including Airbnb, Square, and Uber were started in the wake of the 2008 financial crisis. Even if the business doesn’t turn out to be a runaway success, it’s something a candidate could use to show a prospective employer that they have a greater business understanding than other prospective employees.

But you don’t necessarily have to build a business to demonstrate an entrepreneurial mindset. Participating in bug bounty programmes or building your own portfolio website, for example, shows prospective employers that you’ve kept your skills sharp while looking for work.

Those still in employment, meanwhile, can demonstrate an entrepreneurial mindset by looking for and identifying new revenue opportunities for the companies they work for. You’re a lot less likely to be laid off if, for example, you’ve helped the company land a new client or identified a new sector it can pivot into.

Take care of your mental health

As important as practical steps are in surviving a tech downturn, it’s vital that workers look after their mental health. The first step on that front is to acknowledge the gravity of the situation. Having been laid off before, I know how big of a loss it can be. So let your grief out. Don’t try and hold it in.

It’s also important to be realistic about the situation. Chances are, you aren’t going to find a new job in five days. Even three months may not be realistic, in some instances. Having come to terms with the situation, it’s also important to lean on your support networks. Go to the friends and family that you can trust and be completely open with them. As the work of renowned researcher Dr Brene Brown has shown, embracing vulnerability can be vital to building resilience.

At the same time, hold your boundaries. If someone asks you how the job search is going and you’d rather not say, there’s nothing wrong with saying something like, “I’m not really in the right headspace to talk about that right now. Can we talk about something else?” If distraction’s what you need most at that moment, there’s nothing wrong with it.

Over time, you’ll find that this helps remind you of your worth. So, even if you do have to rebuild from a lower salary, you’ll be less likely to feel that you can’t get back to where you were before.

This too shall pass

While it’s incredibly difficult to do in the thick of it, it’s important for tech workers in Africa and around the globe to remember that the current downturn won’t last forever. New companies will start and they’ll find new ways of funding their growth. And when they do, the workers who’ve built professional and personal resilience will be at the top of their hiring lists.

Last month, Xiaomi Africa launched an online photography campaign to invite fans to show their photography skills with Xiaomi phones. Winners stood to win a 3-day trip to Maasai Mara. Over 1,000 heeded the call and shared their photos under the hashtag #SafariWithXiaomi and true to its promise, Xiaomi took the winners to the Mara along with some professional photographers.

The winners were Patrick Philemon Kulinganila (Tanzania), John Oluwamokamiyo (Nigeria), Samson Osas (Nigeria), Victor Onokaye (Nigeria), Emmanuel Kenechukwu (Nigeria) and Yonis Mohammed (Kenya). The professional photographers on the trip were Alamin Mutunga, Nimrod Zollo and Kenneth Obina.

The evolution of Xiaomi phone cameras has brought great imaging very close to users, allowing them to document moments with remarkable precision. A great example is the Redmi Note 12 Pro+ 5G which the photographers took to the Mara. At 200MP and 4K video capabilities, this camera signifies a new era in mobile photography in mid-level phones, empowering users to explore photography skills they didn’t know they had. It is also redefining the limits of what we thought can be achieved with a smartphone camera, given that the exceptionally high resolution is supported by other features like Pro Mode, 8MP ultrawide, 2 MP macro, preinstalled filters, and a great photo editing software.

This was a fun filled trip to Kenya’s Maasai Mara where the winners got to enjoy the iconic African wilderness, abundant wildlife, breathtaking landscapes, and immersive cultural experiences. We caught up with some of the winners as well as photographers so we could get to hear their thoughts on Xiaomi phones and their experience in the Mara.

Here is what they had to say:

Alamin Mutunga

Alamin Mutunga is a Kenya photographer who communicates best through visuals like photographs, arts, and graphics. Some of the highlights that stood out for him with the Xiaomi trip to Maasai Mara was meeting new people and seeing nonprofessional photographers learn and actually improve their phone photography in such a short time. This was his first time in the Mara, and he has had an amazing time shooting wildlife with the Xiaomi devices.

As a professional photographer, Alamin enjoys shooting with Xiaomi phones because he has a very bulky camera, and yet sometimes all he wants to photograph is people and big cameras make subjects uneasy, hence they don’t look natural in the pictures. Phone cameras solve these problems for him, easily and conveniently.

Among the Xiaomi devices, he has used the Redmi Note 11 Pro and the Redmi Note 12 Pro Plus 5G. He’s very at home with the fact that with the Redmi Note 12 Pro Plus 5G’s, 200MP camera allows him to take photos whose raw format is of great quality to remain true in post-production and even printing.

Alamin feels that Xiaomi is living to its brand purpose of making innovations for all since their phones are putting superior photography power into the hands of everyone. Looking from a perspective of social impact, he feels that good quality cameras make it easier for users to capture everyday things and share. Families for instance are able to capture crisp memories which they can enjoy digitally or print.

He wishes that Xiaomi could improve on their phone cameras in terms of colour profiles and focus. Sometimes he has seen exposure and focus get lost in the middle of a shoot, though this is not something nonprofessional photographers would notice.

Patrick Philemon Kulinganila

Patrick Philemon Kulinganila is a travel, lifestyle, and urban photographer from Tanzania. For him the Xiaomi trip to Kenya had many firsts, like first time on a flight, first time in Kenya and certainly first time in Maasai Mara which has always been a dream of his. He is elated about the great reception by the Xiaomi team and the larger team that he travelled to the Mara with.

Patrick is currently using the Redmi Note 12 Pro+ 5G which he appreciates for many great features, top among them being the 200MP camera. Through this trip, he has gotten to understand Xiaomi phones better since he has interacted with people who have used them much longer. He has only used three generations so far and feels right at home with the brand. He loves the portrait and wide-angle functions but feels that Xiaomi could improve on the night mode and zoom.

Patrick’s biggest highlight of this whole time is being picked as the winner of the #SafariWithXiaomi contest among thousands of other contestants back home. Combined with his visit to Kenya and the Maasai Mara trip courtesy of Xiaomi, this is up there among his greatest achievements.

Kenneth Obina

Kenneth is a Nigeria based tech enthusiast, Youtuber and professional photographer who goes by the brand name Khali Jones.  He’s a visual storyteller with a focus on documentaries and lifestyle, telling everyday life stories in images.

Some of his most impressive moments of the Xiaomi trip to Kenya are that even before arriving in Kenya, he already felt welcome and upon landing, he felt like he was joining a family. The Xiaomi team and the travel group as a whole was very warm and welcoming throughout the planning and execution. He is speechless about the Maasai Mara which he described as his best experience since he was born.

Khali whose everyday device is the Redmi 12 does quite a number of tech reviews on his channel, so he has interacted with a lot of Xiaomi phones. Even before he got his camera, he was using a Redmi phone for professional photography. His rich history of the devices has given him the unique position to witness firsthand the growth and innovations of the phones thus far, and he feels that Xiaomi has lived to its slogan, ‘innovation for everyone’.

Khali was kind enough to treat the group to a masterclass on improving their mobile photography and editing game and having a deeper connection with their phones.

He feels that now that everyone is a content creator, Xiaomi should improve their cameras to a point where they can almost compete with professional cameras. Then, people will be able to take photos even in places where cameras are not allowed but phones are.

Overall, the Safari with Xiaomi has been a great experience and the trip to Maasai Mara was a perfect opportunity to showcase the innovations in mobile photography. It is right in line with Xiaomi’s brand mission to ‘make friends with users and be the coolest company in the users’ hearts’. The campaign was created to offer Xiaomi fans an opportunity to deepen their experience with Xiaomi phones and learn more photography skills and the inclusion of a photography masterclass by Nigerian photographer Kenneth Obina was a befitting conclusion.