African Entrepreneurship Award

BMCE Bank of Africa closes registration for the 2016 African Entrepreneurship Award and prepares to announce the candidates for its second round

8800 entrepreneurs from 105 countries registered with 3900 business ideas

CASABLANCA, Morocco, May 17, 2016/ -- The Group BMCE Bank of Africa announces the closing of Round 1 of the second edition of the African Entrepreneurship Award (https://AfricanEntrepreneurshipAward.com). The AEA is dedicated to inspire talented African entrepreneurs, or originating from Africa, by funding businesses using technologies that transcend borders to create jobs and improve lives. Round 1 opened in mid-February and closed May 6th 2016, attracting about 8800 entrepreneurs from 105 countries submitting 3900 business ideas, that is an increase of +33% in applications volume compared to the Award’s first edition in 2015. From now until May 31st, 130 Regional African mentors are mentoring each business idea to decide who continues to Round 2 “Most Likely to Succeed Across Africa” in each category: Education, Environment and Uncharted Domains. Entrepreneurs from all 54 African countries plus 51 countries in the diaspora competed in Round 1 for “Most Needed In My Region”. Round 1 winners will be announced on May 31st for the opening of Round 2, lasting from May 31st to July 31st 2016. During Round 2, entrepreneurs will benefit from the Pan-African mentors' expertise to improve their business’ ability to meet customer needs and compete effectively across Africa. Following this second round, the best ideas will qualify for the third round of the AEA competition, where Global Mentors from the three continents will mentor African entrepreneurs to improve their businesses and rank “The Most Significant and Sustainable Businesses” for Africa. Initiated in November 2014 by the Chairman of the Group BMCE Bank of Africa, Mr. Othman Benjelloun, the African Entrepreneurship Award illustrates the commitment of this group to inspire entrepreneurship across all of Africa. Each year, this initiative funds 1 million USD for the best African entrepreneurs, thus supporting their efforts to create jobs and improve lives for every African region. In 2015, the 1 million USD Award was shared among 10 winners from five economic zones across Africa.

EYEWITNESS NEWS

LOCAL IS LEKKER... SABC TO PLAY 90% SA MUSIC FROM TOMORROW

As from tomorrow, 90 percent of the music played on its radio stations will be local content.

SABC headquarters in Auckland Park, Johannesburg. Picture: AFP

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Emily Corke & Masechaba Sefularo | about 24 hours ago

JOHANNESBURG – The South African Broadcasting Corporation (SABC) has confirmed it’s implementing the “radical” decision to prioritise local music on all of its radio stations, in a bid to prioritise more local content.

As from tomorrow, 90 percent of the music played on its radio stations will be local content. 

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EWN Reporter ‎@ewnreporter

#SAMusic The public broadcaster says the music will include all genres with a special focus on kwaito, jazz, reggae and gospel. TM

4:25 PM - 11 May 2016 · Johannesburg, South Africa, South Africa

 
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The SABC says the decision was taken after extensive engagements with music representatives, as it moves to ensure the broadcaster reflects the various styles of local music.

Spokesperson Kaiser Kganyago says, “For the next three months, 90 percent of the music on our platform will be local music while we assess the reception of the public and how we are going to move forward in terms of the final percentage.”

In a statement released, says it will engage radio audiences to evaluate whether they are pleased with the changes.

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EWN Reporter ‎@ewnreporter

#SAMusic The SABC says the 90% local music quota will stand for three months - subject to feedback from listeners. TM

4:28 PM - 11 May 2016 · Johannesburg, South Africa, South Africa

 
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This recent move is in line with the SABC’s bid to ensure that it prioritise local content that represents the diversity of South African cultures.

The broadcaster says it will use local music as fillers on television, and as from 1 July, the SABC will also increase the local content offering.

TELECOMMUNICATIONS NEWS

Africa leads the way with mobile data

6 MAY 2016 | SAVE | EMAIL | PRINT |  PDF    

There has been a significant shift in the telecommunications landscape over the last 15 years, and the fast evolution of connectivity has brought us from the screeching tones of a dial up connection to ADSL, fibre, Wi-Fi and 2,3 and 4G connections.

©photka via 123RF

This progression has impacted both business and our personal lives, bringing the world to our fingertips almost faster than we can blink. In South Africa, fibre is taking us to the next level of this evolution, bringing about exciting change and with it, faster connectivity than ever before.

Fibre is the current buzzword in South Africa and trenches are being dug and filled with fibre cable across the globe, barring much of the rest of Africa. Many African countries are bucking the trend towards fibre access for everyone, opting instead for the plentiful benefits of mobile connectivity. But why is mobile connectivity winning out over fibre in Africa?

The mobile advantage

“Countries such as Kenya are seeing a massive uptake of smartphones and mobile connectivity,” says Danny Ross, executive head: Africa at Jasco Enterprise. “Not only are smartphones readily available, but the demand for data has driven mobile service providers to offer very competitive data packages. So mobile data can be purchased and used relatively cheaply compared to other data service offerings.”

Data streaming has also become faster and coverage has become wider. Even people in remote locations can often access the internet with a smartphone. Over and above the reasonable data costs, this is where the benefits of mobile connectivity become most evident: mobile service provisioning is quicker and easier than fibre to deploy to remote areas. Service providers need simply erect a base station and they will be able to immediately provide services to multiple customers.

“We are also seeing a profusion of applications becoming available, designed specifically for the African market,” continues Ross. “There are applications such as Mocality, a Kenyan business directory, and SlimTrader, an app that enables small businesses, like street vendors, to process payments on their mobile phones.”

Applications that make life easier are one of the key drivers behind mobile connectivity’s success in Africa. Many people choose to interact with each other and with businesses online, and smartphone applications that centralise and simplify this process offer the best platforms to do so.

But what about the businesses?

According to Ross, individuals aren’t the only subscribers of mobile data. Despite fibre making inroads into the African market, many African businesses are still choosing to use mobile data. With data prices in the rest of Africa being considerably cheaper than in South Africa, and without needing to wait for months to get connected as is often the case with fibre, businesses are seeing the benefits of cost effective, fast connectivity. There is also the added benefit that mobile data can reach almost anywhere, so businesses outside of urban areas can usually get connected.

Organisations are also cashing in on the application trend. Many companies are developing their own applications in order to connect with – and sell to – their customer base. This is especially true of financial institutions who are enabling branchless banking for their customers. Companies are also using mobile applications themselves to fulfil many business functions, such as online banking, payment facilitation and route planning.

So what’s the downside? Ross admits that there are a few possible disadvantages. While mobile data coverage is extensive, it isn’t omnipresent and there are areas where coverage could be scarce or non-existent. Additionally, companies who have very large bandwidth requirements may elect to use an alternative method of connectivity, as mobile data may not always offer the speeds required for efficiency in such cases.

“The benefits far outweigh the disadvantages,” finishes Ross, emphasising exactly why Africa chooses mobile data over any other technology. Although there is still a market for technologies such as fibre and Wi-Fi, Africa’s innovative use of mobile data and applications to make life simpler and better is lightyears ahead of anywhere else.

ENTREPRENEURSHIP NEWS

Survey provides glimpse into the world of young entrepreneurs in Africa

29 MAR 2016 | SAVE | EMAIL | PRINT |  PDF    

The Entrepreneurship Survey is based on an emailed questionnaire answered by a selection of young entrepreneurs within the 15 to 25 age group, and located across the African continent. The survey focused on five areas of operating a business, namely growth, sales and marketing, human resources, funding and support.

It is hoped that stakeholders, such as policy makers, support organisations, and entrepreneurs will benefit from these insights. Survey respondents overwhelmingly stated that access to finance is their main barrier to growth, with 48% highlighting it as the biggest obstacle to expanding their companies. Only 27% of young entrepreneurs received any form of outside investment, with family members (59%) and grants (52%) being the major sources of funding accessible. Despite challenges faced, 84 of entrepreneurs reported employing others, underscoring the employment creation potential of youth businesses. However, a large proportion of respondents (41%), described the level of support available to enable and scale young entrepreneurs in their countries as “poor” and “very poor”. This suggests that significant work remains to make it easier for young business people to succeed.

Anzisha Prize (www.AnzishaPrize.org) applications are currently open for young entrepreneurs between the ages of 15 and 22 to compete for a share of $100,000 in prize money and receive access to support and networks to scale their businesses. Applications will close on 15 April 2016. The Anzisha Prize is offered in partnership between The MasterCard Foundation and African Leadership Academy.

“African Leadership Academy is excited to be investing in research such as this,” says Josh Adler, vice president, Global Programmes at African Leadership Academy. “It is our hope that this and future reports will guide the work of teachers, policy makers and other stakeholders in the youth development sector.”

The youth surveyed overwhelmingly reported pursuing entrepreneurship primarily to make a difference in the world (57% of respondents). They largely have a focus on communities and use face-to-face client visits as the primary sales channel (56%) and word of mouth as the primary marketing tool (83%). In terms of human resources, 84% of ventures reported having employees. Young CEOs reward and incentivise their employees in a variety of ways, with training programmes (51%) and bonuses (47%) being the most popular. A large percentage also allow their employees to participate in the success of the business through profit sharing (37%). Young entrepreneurs are in a position to impact others through employment and skill building. However, they reported that the level of support available for entrepreneurs in their countries is inadequate.

“There is a large deficiency of knowledge and insights on young African entrepreneurs,” says Koffi Assouan, program manager at The MasterCard Foundation. “This report provides critical data that can drive programs and strategies to support youth entrepreneurship and spark a much needed conversation among practitioners and stakeholders in this space.”

The full survey report is available for download at http://www.AnzishaPrize.org/resources. Country level insights may be requested from the Anzisha Prize team.

For more information on the Anzisha Prize and to nominate an entrepreneur or apply, please visit the Anzisha Prize website: www.AnzishaPrize.org.

FINANCIAL SERVICES NEWS

Global crowdfunding portal launched to fund African entrepreneurs

9 FEB 2016 | SAVE | EMAIL | PRINT |  PDF    

Small and medium sized enterprises (SMEs) are the primary job creation engine in Africa, accounting for over 95% of firms and 60%-70% of employment.

Neku Atawodi - founder and CEO of Malaik

However, SMEs on the continent report access to finance as the biggest obstacle to growth. There is no lack of good ideas. Yet, young African entrepreneurs struggle to access the funds needed to bring their ideas and businesses to scale. Malaik, a global portal for high impact investing in African businesses, launched a call for applications to African entrepreneurs with impact focused businesses. The portal offers opportunities for the global crowd to invest in Africa's growth story.

"Africa is brimming with entrepreneurs with growing high impact businesses that could not only positively impact Africa, but the world," said Neku Atawodi, founder and CEO of Malaik. "Access to finance has always been a tough challenge to overcome and people have typically not wanted to invest in African businesses as they have historically been considered too risky. 

"However, the African narrative is changing for the better and the continent's exponential growth in the last decade shows that an investment in impact focused African businesses can yield high returns."

Funding first company

Since the launch of the portal, Malaik has fully funded its first company - i-Drop water - to the tune of over $250,000 and has been chosen to demo its unique innovation on stage at one of Europe's largest technology in finance conferences, FinovateEurope 2016 in London from 9-10 February. FinovateEurope is one of the biggest financial conferences in Europe and attracts the most notable players in financial services technology from across the world. 

"Young companies all over Africa face a scarcity of funds to fuel their growth," said Atawodi. "Apart from banks and occasional angel investors, there is often nowhere to turn. Malaik is turning this crisis into an opportunity for startups and investors alike by offering stakes in young African companies to the crowd. Our unique impact tracker means that investors can track their investments' impact on the platform."

Entrepreneurs across Africa are encouraged to submit their applications to join the Malaik platform as an opportunity to raise funds for their businesses. Open to startups with high impact, innovative, original and diverse ideas ready for potential investment. On passing Malaik's due diligence, startups now have the opportunity to attract a diverse crowd of investors and supporters via equity finance.

ENTREPRENEURSHIP NEWS

South Africa proudly takes over the torch for GEC 2017 in Medellin, Colombia

18 MAR 2016 | SAVE | EMAIL | PRINT |  PDF    ISSUED BY: SEA AFRICA

More than 160 countries are represented at the Global Entrepreneurship Congress in Colombia, and with South Africa hosting the GEC in 2017 for the very first time on the African continent, it is signaling to the global investment community that South Africa is open for business and ready to lead the entrepreneurial revolution on the African continent.

The annual Global Entrepreneurship Congress (GEC 2016) kicked-off in Medellin, Colombia on 14 March 2017. The GEC is the largest gathering of entrepreneurs, investors, policy makers, innovators and government ministers from around the world. The congress brings together more than 6500 delegates from 160 countries. The theme for this year’s congress was ‘The Business of Next’, and the theme speaks to improving the entrepreneurial ecosystem towards adapting to changes in the business environment, innovative solutions and investments.

Ambassador to Venezuela, Her Excellency Ambassador Thaninga Shope-Linney, who is representing Minister Lindiwe Zulu, as well as the Member of Mayoral Committee: Department of Economic Development Councillor Ruby Mathang from the City of Johannesburg (CoJ) received the GEC torch and flag from Jonathan Ortmans, president of the Global Entrepreneurship Network (GEN).

MMC Mathang articulated that “The globalisation of entrepreneurship has brought an explosion of programs, startup communities and investment opportunities into a new field. We are here in Colombia, as South Africa, to inform the global entrepreneurship network that Johannesburg is here to collaborate and share world class best practices.”

The GEC will grace the African continent for the first time at the Sandton Convention Centre in Johannesburg, from the 13-17 March 2017.

The business sector, education and government leaders have been eager champions, but they need more sophisticated tools, programs and research to help them direct their attention and funds to areas with the greatest impact on future economic growth and trends. The GEC helps address these needs by identifying effective initiatives – in all types of economies, across the macro or micro level; advanced or emerging – that positively impact entrepreneurial eco-systems around the world.

Speaking during the transition ceremony, Ortmans, said: “GEC 2017 is just one example of the Global Entrepreneurship Network’s commitment to helping the next generation of African entrepreneurs start and scale - rebranding the continent and permanently shifting perceptions around the world. We look forward to coming to South Africa.”

The successful GEC bid has been a collaborative partnership between SEA Africa, the Department of Small Business Development, City of Johannesburg, Gauteng Province, ABSA and Transnet. The South African delegation in Colombia have hosted 50 key global stakeholders in Medellin to present the roadmap to the GEC 2017 South Africa.

South Africa’s Minister for Small Business Development, Lindiwe Zulu, speaking from Pretoria stated that “Participating in global community strengthens the SME sector through understanding how different entrepreneurial ecosystems operate, learn best practices and how tools may be used to improve domestic markets. Given the constraints faced by the South African economy a significant boost in SME sector is required to address the current low growth projections and high unemployment especially amongst the youth. The GEC will provide insight on best practices, which we will localise, for the South African market. I am further encouraged that South Africa’s delegation will also use the opportunity to spark networks and create strategic conversations with global investors in preparation for Africa’s GEC in 2017.”

The Local Organising Committee will lead efforts to engage other entrepreneurial organisations across the continent including the different provinces in South Africa to establish avenues for collaboration.

The Executive Head of SEA Africa Kizito Okechukwu added that: “The GEC will help sustain the momentum of the entrepreneurial revolution currently underway globally and is accelerating in South Africa and the rest of the African continent. Together, with our partners, we emphasise the importance of private-public sector involvement and civil society for social investments, skills transfer, access to markets and collaboration with smaller businesses to achieve the expected economic development impact that is desired by all Africans.

A range of programmes and activities will be held leading up to GEC 2017. Entrepreneurs are encouraged to explore the opportunities within the various platforms.

ENTREPRENEURSHIP NEWS

Campaign to help SMEs reach 1001 days

18 MAR 2016 | SAVE | EMAIL | PRINT |  PDF    

It is known that entrepreneurial businesses that make it to 1001 days (three years) are likely to succeed and thrive long term. To discover what makes a successful entrepreneur and to help many more South Africans reach this milestone, Santam has launched the next phase of its 1001 days initiative.

123RF

The company conducted an independent research survey of 606 business owners in South Africa. The research findings will be released in a series of reports over the next six months and can be accessed – along with other useful expert insights – through the 1001 days website. 

This month’s findings

This month explores the question, “Can anyone be an entrepreneur?”

The research takes a closer look at the traits, motivators and industries of successful businesses and finds:

• The ability to cope under pressure, adaptability, self-confidence and people skills were viewed as essential traits to succeed. More than 90% of respondents cited these are vital traits to succeed.
• These were followed very closely by optimism, financial savvy, leadership and the ability to negotiate.
• Passion is the number one motivator for starting a business – ‘bags and bags and bags’ of passion motivated 47.6% of the survey group.
• The desire to ‘be your own boss’ was the second biggest motivator at 28.2% of those surveyed.
• Learning from your mistakes is vital – 57% of the business founders surveyed founded between two and six businesses, in addition to their successful operation.
• 60% of those surveyed are in service-orientated industries and 25.5% are engaged in selling products. 
• Females are somewhat more likely to run service-orientated businesses (62% of females surveyed are in service versus 58.1% of males) as well as sales-orientated businesses (28.5% of surveyed females versus 22.7% of males). On the other hand, males are more likely to be in licensing or using another company’s products (3.5% of males surveyed versus 0.6% of females) or services or e-commerce (7.6% of males surveyed versus 3.2% of females).

Nature vs nurture

To delve more deeply into what traits make for a successful entrepreneur, Santam also asked two successful entrepreneurs whether ‘nature or nurture’ brings entrepreneurial success.

Well-known entrepreneur and investor on the popular ‘Dragons Den’ show, Lebo Gunguluza, owns Gunguluza Enterprises and Media, a group that owns 12 print publications, has stakes in a number of hotels and a car-hire business. “Not everyone can be an entrepreneur. You have to be independent and willing to take risks. Although people do have the potential and can be groomed into entrepreneurship, someone who is highly risk averse is likely to struggle with the uncertainty that comes with being your own boss.”

Luvuyo Rani, a Khayelitsha entrepreneur whose company, Silulo Ulutho Technologies, started selling refurbished computers from a car boot and now operates 18 IT training centres around the Western Cape, also believes entrepreneurship is a particular talent, which not all people have. However, he believes all individuals can learn to be an entrepreneur. “However, one should remember that it is a lonely life and a journey one needs to prepare for psychologically. It also means compromises in terms of family time and finances, and not everyone is comfortable with this.”

Broad initiative to support SMEs

Santam’s Fareedah Benjamin says the ‘1001 days’ research forms part of a broader initiative, which includes a website with tools and real-life stories to inspire business owners. “We are hoping that by allowing entrepreneurs to learn through the experiences of others, more businesses will reach and pass this critical milestone. The initiative provides guidance for both the first three years and the years that follow.” 

Benjamin says entrepreneurship forms part of the DNA of the group. “Entrepreneurs represent one of the biggest future growth opportunities for a sustainable South African economy. As an insurer, we are committed to walking a path with our country’s entrepreneurs, ensuring that their financial stability on their journey is taken care of from an insurance perspective.

“Our aim is to help new businesses thrive, recognising that for any start-up business, the future is full of unknowns. Insurance then has broader implications for entrepreneurs, helping them get over unforeseen hurdles, but also freeing them from other constraints that would otherwise stop them in their tracks when they are most vulnerable." 

For more information, go to www.santam.co.za/1001-days.