Category: BUSINESS

By Ololade Odunsi, Talent Acquisition Lead at Founders Factory Africa

Capital isn’t the only ingredient that moves a startup from concept to success. The other is people. Without high-quality founders and the right team to support them, a venture will never move from pre-seed to the graduation of Series A.

However, much like the Great Reset taking place on the continent with investment harder to come by, a different reset has happened in the talent market. Post-COVID, African tech talent benefitted broadly from a job market favouring workers. A high-quality developer from Abuja could be based in Nigeria and work for a large US tech company that pays in US dollars.

Sounds great, right? Not too fast.

The talent market has done a 180

COVID-19 forced reluctant global employers to experiment with remote work, but they learned quickly how remote work can be used to suit their needs. Many have since returned to an in-office model, but the lessons remain. If a ramp-up in internal capacity is needed quickly, the remote talent place is always a good place to start. However, as we move into Q3 and Q4 of 2023, the talent marketplace has changed again.

The tougher macroeconomic environment has forced global employers, including tech giants like Google and Meta, to cut their workforces, with Africans bearing the brunt of these layoffs. Meta fired its entire content team in Kenya—a case that ended up in court—, while Twitter made large parts of its Africa team redundant, with some workers having only joined weeks before.

In the market, other large employers with skilled tech workers on their books have felt the pinch, with workforces reduced across sectors to cut costs. The result is a one-two punch for the ecosystem. Startups are finding it harder to raise funds, but at the same time, the local talent they need to take that next step is suddenly back on the market. The worker market has done a 180. We are now in an employer’s market.

In Nigeria, for example, the tech talents that left the country as part of the Japa wave in search of better working conditions and pay are not returning. There are exceptions, but for the majority, the journey is a hard one, and they do not want to sacrifice hard-earned gains. It’s a similar story across other markets in West and East Africa.

What has changed is that even though these skilled tech professionals now live overseas, they are open to work offered in their home countries. The problem these workers now face is that the salaries they need to live abroad are not provided by local companies, with large corporations the exception.

Even more importantly, hiring employers are dedicating more time to due diligence because they don’t want to bear the costs of a poor hire. They are also searching for candidates who have the potential to grow out of the roles they are hired for. Training internally is far cheaper than going to the market, even in a talent market that favours the employer. That means a preference has emerged for locally-based workers because these workers are easier to monitor, manage and pay than overseas candidates.

The post-COVID salary hangover has arrived

A different consequence of the post-COVID-19 pro-worker talent market is that salaries increased at rates not seen in years. Local firms raised salaries, as did their international competitors. Foreign firms held the advantage because of their deep wallets and the dollar exchange rates, allowing them to increase wages quickly and even offer payment in US dollars, placing extreme pressure on tech employers in East and West Africa.

So far, in 2023, this salary bubble has burst. The salaries that tech workers expect to be paid are out of sync with what the market is willing to offer, with inflation and high-interest rates eating into employer margins. International and local employers in the tech sector are tightening their belts wherever possible.

The candidates who understand these market dynamics and how best to navigate them have the best opportunity to find employment or re-employment in the tech sector and ecosystem. For example, there were CTO roles in Nigeria that were open for months on end in 2022. Now, employers can close applications within a few weeks because they have many available candidates to choose from.

As the full effects of the interest rate cycle bear fruit in the coming quarters, competition in the tech talent market will only become more fierce. That doesn’t mean opportunities do not exist, but employers are wiser than they were 12 months ago, while tech workers must adjust to the macro dominating their respective sectors.

Huawei is rolling out a new information and communication technology solution specifically built for the hydro-electric power generation sector.

Known as an Evolved Long Term Evolution (eLTE) Private Broadband Network, it is an intelligent energy management system built to ensure efficient power generation, power plant operations and power distribution.

In a statement from the head office, Huawei Kenya CEO Will Meng said that the solution is being implemented across the Africa continent for hydropower generation plants whose thick concrete walls are a challenge for existing communication systems.

“Huawei’s eLTE Broadband Network penetrates the thick concrete walls to provide all essential communication and operational management services across the entire company,” said Will. He added that the network carries voice, video, and data services throughout the plant, above and below ground and enables instant communication between the control room and maintenance staff. It effectively covers, without extensive cabling and installation, both indoor and outdoor working areas, including roadways inside the dam, generator rooms, and employee living areas within the plant’s vicinity, reducing delays and introducing certainty on the plant status..

With features like “push-to-talk” and group calls for both voice and video, the private network makes routine maintenance and handling of emergencies easier and more efficient at the power plant.

Will explained that staff can communicate via video call to fix maintenance challenges in record time and that building such modern networks also provides capacity for growth, enabling intelligent digital transformation of the site in the future.

Clean energy is becoming increasingly important in their national energy mix, with Kenya on the Eastern side registering 57% is hydro power, about 32% is thermal and the rest geothermal and emergency thermal power. Solar PV and Wind power play a minor role contributing 2%. Kenya’s building stock is projected to grow to about 47 million square meters by 2025 with an attendant rise in electricity supply to the building and construction sector expected to be largely from renewable energy by 2030. Innovations like the eLTE solution are intended to enable hydropower producers like KenGen to effectively manage and distribute power to meet high demand in more efficient and reliable ways.

The eLTE solution has been tested in Ghana for the Bui Power Authority (BPA) which has a hybrid hydropower and solar plant. BPA has commissioned the first 5MW Floating Solar Plant in the Sub-Saharan region and supplies power through the Bui Switchyard to the National Interconnected Transmission System (NITS).

Its hydro power plant produces 404MW of electricity while an additional 50MW of power is generated from the solar installations on site, with the total renewable power output contributing around 6-7% of the total power generated in-country.

Speaking when he commissioned the new Huawei system, Ghana’s Energy Minister Dr. Matthew Opoku Prempeh said that with the country striding towards achieving universal electricity access by 2025, it is important for it to unleash the transformational power of ICT in optimizing the operations at power plants, increasing the efficiency of renewable energy use, and ensuring a stable and cost-effective electricity supply to many more households nationwide.

This, he said, is a practice that should be replicated across the continent as most African countries expand their reliance on renewable energy sources of electricity.

Small businesses often face numerous challenges when securing financing for growth and operational needs. Traditional lending practices often demand extensive collateral and rigid criteria, making it difficult for small businesses to access the required capital.

Unsecured loans provide a unique flexibility level often lacking in traditional financing options. Small businesses can obtain these loans without having to pledge assets or provide collateral. This accessibility levels the playing field, allowing entrepreneurs with limited resources or new ventures to access much-needed capital.

Unlike traditional loan applications that involve extensive paperwork and lengthy approval processes, unsecured loans offer a streamlined and expedited process. With fewer bureaucratic hurdles, small businesses can receive funds quickly, allowing them to seize time-sensitive opportunities, invest in growth initiatives, or address unexpected financial challenges. The speed at which unsecured loans are disbursed enhances business agility, enabling small enterprises to adapt and respond swiftly to market changes.

One of the most significant advantages of unsecured loans is that they do not require the business owner to surrender ownership or dilute equity. Entrepreneurs retain complete control over their enterprises and maintain the ability to make independent decisions. This freedom is invaluable for small businesses, allowing them to preserve their vision and execute strategies without external interference. Unsecured loans thus empower entrepreneurs to grow their businesses on their terms, safeguarding their independence and long-term sustainability.

For small businesses still establishing their credit history or have faced financial setbacks, unsecured loans can be a valuable tool to build or rebuild creditworthiness. In managing and repaying unsecured loans, small businesses demonstrate their ability to meet financial obligations, improving their credit profiles and opening doors to more favourable financing options. This positive cycle of credit-building nurtures business growth and paves the way for increased access to capital down the line.

Lenders often back unsecured loans with a vested interest in supporting small businesses. As a result, these loans can foster a spirit of innovation and entrepreneurship. Lenders specialising in unsecured lending typically understand the unique needs and challenges faced by small businesses and are more willing to take calculated risks on promising ventures.

An institution that gives an SME an unsecured loan means it trusts the SME. It is a risk that few are always willing to take. Stanbic Bank Kenya is such a risk-taker. The lender has one of the best-unsecured loans in Kenya. The minimum Loan amount that Stanbic gives unsecured is 100,000 shillings with a maximum loan amount of 10 million shillings; under supply chain financing, unsecured loans of up to 100 million are offered.

What is more, the maximum loan term is 36 months with an option of one topping up their loan after six months of repaying it. There is also credit life insurance on all loans, and all loans get approval within 48 hours after we get all your supporting documents. Customers who have banked with Stanbic Bank for at least six months can access digital loans of up to 3 million shillings on the Stanbic APP or through USSD.

Esther Ngomeli, former Deputy CEO and COO for Redhouse Group has announced her exit from the company to establish Zenith East Africa Group, an integrated marketing and communication (IMC) agency that places emphasis on people, practice, performance, planet, and impact.

Zenith East Africa Consulting Group mission is anchored on redefining the IMC landscape by delivering strategic solutions that prioritize human connections, supporting business growth, creating value for stakeholders and promoting sustainability for positive impact on the planet.

With a trailblazing spirit and a relentless pursuit of excellence, Ms Ngomeli has earned a sterling reputation as a multi-skilled business leader, with innovative thinking and strategic acumen. Under her leadership, Redhouse Group has flourished, achieving unprecedented growth and numerous accolades as a trusted partner for brands within the East Africa region.

“It is with both humility and exhilaration that I announce my departure from Redhouse Group and the launch of this groundbreaking new venture. The time has come to fully harness the potential of marketing and communication in the digital age. Our new agency will be a catalyst for change, embracing innovation, and providing strategic guidance that will propel our clients towards unprecedented success. We are committed to challenging the status quo and reimagining what is possible in this dynamic industry,” said Ms Ngomeli.

Drawing upon Ms Ngomeli’s exceptional track record of success and expertise, industry and business insights, and her deep understanding of the evolving marketing and communication landscape, the agency aims to deliver unmatched value and transformative solutions to its clients. By combining cutting-edge technology, creativity, data-driven strategies, and a people-centric approach, the Zenith East Africa Consulting Group will empower organizations to connect with their audiences in profound ways, driving sustainable growth, fostering authentic and meaningful relationships.

Ms Ngomeli’s decision to establish Zenith East Africa Consulting Group has received overwhelming support from industry leaders, clients, and peers who recognize her unrivaled track record of growing businesses, delivering exceptional results and driving positive impact for both businesses and individuals. The marketing and communication community eagerly anticipates partnering and engaging with the agency, expecting nothing less than a transformative force that will reshape the industry’s landscape.

“I aspire to weave together purpose-driven strategic solutions that harness the power of data, champion sustainability, and forge unbreakable bonds with humanity,” added Ms Ngomeli.

In an era where consumers demand authenticity, social responsibility, and personalized experiences, Ms Ngomeli recognizes the need for a paradigm shift within the category. “Zenith East Africa Consulting Group will spearhead this transformative movement, leveraging the power of IMC to drive business growth and societal impact. By prioritizing human connections, delivering exceptional performance, making a positive impact on society, and protecting the planet, the agency will embody these values to deliver extraordinary results for its clients while contributing to a sustainable and inclusive future,” concluded Ms Ngomeli.

As Ms Ngomeli bids farewell to Redhouse Group, she expresses deep gratitude to her dedicated team, clients, and partners who have played an instrumental role in the agency’s remarkable journey. Redhouse Group will continue its legacy of excellence under new leadership, while Ms Ngomeli embarks on this thrilling new adventure that promises to push the boundaries of strategic communication and sustainable business consultancy.

• The bank has so far invested north of Kes 200 million in digitizing its service offering with the introduction of the Host-to-Host solution offering a fresh window of opportunity for a happier and more successful future for Large Enterprises and Corporates.
• New Solution offers customers enhanced financial control over their financial operations with its advanced tools for cash flow management, financial forecasting, and real-time monitoring of transactions, empowering businesses to make informed financial decisions.

Nairobi, Kenya, June 20^th, 2023, …Large Enterprises and Corporates can now make seamless, real-time, and cost-effective transfers between banks and their corporate clients using the Faulu Microfinance Bank Host-to-Host (H2H) banking solution unveiled today.

The solution is one in a series of digital offerings that the bank is set to roll out this year as part of its strategic move to become a digital-first trader’s bank.  It complements its recent innovations such as the Faulu DigiCash App, and the tap-and-pay digital cards that allow users to transact on the go.

Speaking during the official launch of the solution, Faulu Microfinance Bank Acting CEO Julius Ouma said the Host-to-Host solution is built upon open banking principles and creates a secure and interconnected ecosystem representing a significant milestone in the bank’s transformative journey.

“We are committed to empowering our customers and equipping them with the essential tools to flourish in today’s fiercely competitive business landscape. Therefore, Faulu Bank’s Host-to-Host solution addresses the increasing demand for convenient and secure banking services, granting our target customers seamless access to a comprehensive range of services through various digital channels. This exemplifies our steadfast commitment to innovation and unwavering dedication to the success of our valued customers.” said Mr. Ouma.

Key features that come embedded with the solution include a secure and Interconnected Ecosystem that enables seamless transactions between banks and their corporate clients, and the privacy and confidentiality of sensitive financial information, Real-time and Cost-effective Transfers that facilitate quicker and more efficient financial transactions. This feature eliminates the need for manual processing, reducing operational costs and streamlining business operations.

Others are access to convenient digital channels such as mobile banking applications, internet banking platforms, and other digital interfaces, allowing customers to perform banking activities anytime and anywhere. Large enterprises and corporates will also have access to a comprehensive service portfolio tailored to meet their diverse needs such as account management, funds transfers, payment processing, liquidity management, and balance reporting, among others.

Speaking at the Launch, Old Mutual Group Chief Operations Officer, EA Dr. Isaac Nzyoka said the group will continue to support the evolution of Faulu to become a leading bank for the segment that it serves. The bank is one of the subsidiaries of the Old Mutual Group -EA.

“Over and above offering convenience to the customers, the roll-out of e-banking and host-to-host solutions perfectly integrates Faulu into the group thereby bringing the vision of Integrated Financial Service offering to our customers across our different service lines” said Dr. Nzyoka.

Farther, through leveraging the H2H innovation, enterprises which subscribe to this solution will have enhanced financial control over their financial operations through the solution’s advanced features. H2H provides tools for cash flow management, financial forecasting, and real-time monitoring of transactions empowering businesses to make informed financial decisions. This is in addition to seamless integration capabilities with existing business systems and accounting software used by the target companies. This integration enables the automation of financial processes, simplifying reconciliation and minimizing errors.

The solution is further designed to accommodate scalability and flexibility in order to address the evolving needs of businesses. This allows them to expand their operations without any limitations imposed by the banking solution.

Faulu Microfinance Bank remains committed to its customers’ success and continues to explore new opportunities to enhance its banking experience. This commitment to excellence was recently recognized at the prestigious 2023 Think Business Awards, where Faulu was honoured as the Best Microfinance in Digital Banking and Product Innovation.