The Economist's Africa editor compares East Africa's development with the rest of the continent

The Economist's Africa editor compares East Africa's development with the rest of the continent

In this episode I speak with Jonathan Rosenthal, the Africa Editor of The Economist.

Our paths crossed when I was back in London for a few weeks, and so we took the opportunity to meet, and speak about some of the continent wide trends which he’s seeing, from the vantage point of running the Africa desk for the magazine.

Most episodes you’ll have listened to on the show will delve into a particular aspect of running a company in East Africa. Teasing out the specifics of why a certain business decision has been made or not, or trends that are present within a particular industry niche.

This episode is slightly different.

Jonathan and I take a much broader look at Africa’s development through the lens of, say, government debt ratios and currency reserves.

Whilst this might seem a bit lofty, I’d encourage you to stick with it.

In listening to the other episodes you will (I hope) get an understanding of the micro level of business in the region.

To get a fuller picture requires, I believe, to understand the larger macro factors at play in the story of development.

One such example of this is the government policy of raising debt from local banks. Because the interest rates they offer are so high, it distorts the incentives for banks to lend to local businesses. As such, this macro level effect of “crowding out” the private sector trickles down to the suppression
of local businesses looking for capital to grow.

There are also references to the macro trends that can come from the innovation of rooftop solar systems. If you’d like to learn more on this, be sure to check out the Distributed Economy episode with Conrad Whitaker from Azuri Technologies.

The interview took place at The Economist HQ in London which, helpfully, has a recording studio of its own. If you’re interested in hearing more from The Economist, be sure to check out their regular podcasts which feature updates, insights and in-depth interviews that expand on their stories.

READ MORE AT:
https://theeastafricabusinesspodcast.com/2018/09/20/the-economist-how-east-africas-development-compares-with-the-rest-of-the-continent-with-jonathan-rosenthal-africa-editor-of-the-economist/

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Game-changing technology that allows those with low-income to purchase goods on credit

Game-changing technology that allows those with low-income to purchase goods on credit

If you don’t have much money there are lots of things that you can’t buy. This might sound simplistic, but in a country where a high proportion of the population have low disposable income it means that, as a manufacturer of products, there is a huge number of people who you can’t access. Unless… you could just give it to them have them pay you back over time. This is the opportunity that Angaza has seen, and they have developed a software platform to allow manufacturers to switch off devices if credit payments aren’t paid. Doing so puts products in the hands of people who otherwise couldn’t afford it. Lindsay is the Head of the Africa office and we discuss the history of the company, considerations for giving products on credit and applying their technology to a range of different products. It’s also similar, but different, to BBOXX who featured on an early episode called “Solar Systems”. You might be interested in listening to that too. READ MORE AT:https://theeastafricabusinesspodcast.com/2017/02/22/hardware-technology-remotely-controlling-solar-products-to-open-up-new-markets-with-lindsay-caldwell-from-angaza/

22 Feb 201732min

Why lack of working capital chokes the Kenyan food industry, and how Umati Capital solves this

Why lack of working capital chokes the Kenyan food industry, and how Umati Capital solves this

Working capital in East Africa is tough to get your hands on. Umati Capital are looking to help, using technology to give credit where banks won’t, typically through giving food producers an advance when a big order comes in. Ivan and I talk about how the legal environment means issuing credit is tough, how they evaluate their clients, and their vision to professionalise the supply chain across the continent. It’s similar to the SME Financing episode with Bakka from Patasente, so give that a listen too if you find this interested. I also should note that the only room available in their co-working space was quite echo-y, and so the audio quality for this interview isn’t great. A couple of answers get lost and so I’m sorry about that. Nevertheless, I hope that doesn’t detract from what is a very interesting interview READ MORE AT:https://theeastafricabusinesspodcast.com/2017/02/15/invoice-financing-smoothing-access-to-capital-in-food-industry-with-ivan-mbowa-from-umati-capital/

15 Feb 201731min

Where does your tea come from? Toby Theobald from Chai Tausi in Tanzania explains

Where does your tea come from? Toby Theobald from Chai Tausi in Tanzania explains

Tea is a product that has a strong industrial base in East Africa. It’s been going for years, meaning that many companies have emerged and there is a pretty competitive landscape. In this episode I speak with Toby, Operations Manager at Chai Tausi in Tanzania We discuss the supply and sales network that they have in place, the best conditions for growing tea across the region and the considerations when it comes to making their blend. I’ve spoken to a lot of high tech companies on my tour in East Africa but this is a proper old school business that we chat about. I hope you enjoy it as much I did. READ MORE AT:https://theeastafricabusinesspodcast.com/2017/02/08/tea-talking-cuppas-from-plant-to-mug-with-toby-theobald-from-chai-tausi/

8 Feb 201737min

"Netflix for Africa": how Tango TV is creating a platform for streaming local East African content

"Netflix for Africa": how Tango TV is creating a platform for streaming local East African content

Most people like to be entertained. Soon after getting a smartphone, people in East Africa start to seek out entertainment in the form of videos on Youtube not even considering the idea of a traditional television which has to stick to a schedule and requires being at home Internationally, the dominant “on-demand” video service is Netflix though the content isn’t very relatable to the African market. Victor and I discuss Tango TV, the Netflix alternative starting in Tanzania We discuss the current media distribution model in Tanzania, considerations of building a video streaming app in East Africa and why the local market won’t watch Game of Thrones even if it was in Swahili It’s a very interesting conversation that we have, and so I hope you enjoy. READ MORE AT:https://theeastafricabusinesspodcast.com/2017/02/01/on-demand-video-building-netflix-for-africa-with-victor-mnyawami-from-tango-tv/

1 Feb 201734min

Digital transformation in Tanzania hospitals - how Geek Technologies make local businesses paperless

Digital transformation in Tanzania hospitals - how Geek Technologies make local businesses paperless

As more of East Africa goes online, they need web services. The trend is towards broader access to the internet and with thata demand towards bringing more and more offline interactions into the digital world. In Tanzania, this is exactly what Geek Technologies are doing Mbelwa and I discuss the trend towards making services digital, how they win customers and why they decided to name their business Geek Technologies It’s an insightful interview about technology in the country, and so I hope you enjoy READ MORE AT:https://theeastafricabusinesspodcast.com/2017/01/25/web-services-creating-paperless-systems-in-tanzania-with-mbelwa-mchayungu-from-geek-technologies/

25 Jan 201730min

How Living Labs teaches entrepreneurship to rural Tanzanians, with Victoria John

How Living Labs teaches entrepreneurship to rural Tanzanians, with Victoria John

Education is something which a lot of people are hungry for. Living Lab is a non-profit organisation in Tanzania that looks to empower people in low income communitiesthrough giving training in entrepreneurship and leadership In this interview, Victoria and I discuss the demographics of their participants, the logistics around organising rural education programmes and why liquid soap production is a popular business idea READ MORE AT:https://theeastafricabusinesspodcast.com/2017/01/18/business-skills-teaching-entrepreneurship-in-rural-tanzania-with-victoria-john-from-living-labs/

18 Jan 201729min

Cycling with elephants: breaking new ground in Tanzanian travel with Mejah Mbuya from Afriroots

Cycling with elephants: breaking new ground in Tanzanian travel with Mejah Mbuya from Afriroots

When most people think of East Africa, they visualise safari. The region is home to many large and exotic animals which parade through the national parks Mejah runs Afriroots, a tour company which focuses on experiences that are off the beaten track We discuss the different customer types they have, how he started his company with $200 and what to do if you ever become confronted by a lion. We were also next to where an aerobics class was taking place, and so if you hear some throbbing beats in the background, it’s just that. Either way, it’s a really interesting discussion about the tourism market in Tanzania and so I hope you enjoy. READ MORE AT:https://theeastafricabusinesspodcast.com/2017/01/11/off-beaten-tours-breaking-new-ground-in-tanzanian-travel-with-mejah-mbuya-from-afriroots/

11 Jan 201733min

Building "Spotify for Africa" with Martin Nielsen from Mdundo

Building "Spotify for Africa" with Martin Nielsen from Mdundo

One of the things I’ve found interesting is how proven international business models are being applied in East Africa. Music streaming is one of these. In years gone by people in Europe and the US would own CDs but now stream through services like Spotify, which pays royalties to its artists and makes music accessible to all. Martin, who started Mdundo, is doing this in East Africa, though… it’s a little different. We discuss the particulars of the African music market, the considerations in scaling their business and what they look for in hiring talent. The room is slightly echo-y, so apologies in advance, however I hope this doesn’t detract from our very interesting conversation READ MORE AT:https://theeastafricabusinesspodcast.com/2017/01/04/music-streaming-building-spotify-for-africa-with-martin-nielsen-from-mdundo/&a

4 Jan 201733min

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