Tuesday, December 27, 2011

Boeing 787 in Nairobi

Boeing brought a new 787 aircraft to Nairobi as part of their Dreamliner World Tour in mid-December.

Boeing were presenting the plane to their customers who had ordered the plane in record numbers, but then had to wait for a few years more for delivery due to delays in completion of the plane. It's first flight was scheduled for 7th August 2007 (07-08-07) but this took place in 2010 and while airlines like Kenya Airways were supposed to have received Dreamliner planes in September 2010, currently there are still only 2 Dreamliner planes in customer service (both with All Nippon Airways Japan. And while Kenya Airways (KQ) had billboards and newspaper adverts showing the 787 plane in their corporate colours, it was a Boeing coloured jet that was flown in by KQ's Captain Paul Mwangi after a similar presentation in Addis Ababa.

There was a dinner held at the KQ headquarters the second night that the Dreamliner was in Nairobi that I was fortunate to attend. It was also a treat to meet many of the 40 staff Boeing staff who accompanied the plane on the tour through Africa and the plane attracted hundreds of visitors including local CEO's, passengers and even a Kenyan born Rolls Royce engineer.

MC Jeff Koinange started the evening off with his tales of how he used to be a PanAm airline steward making on board announcements and this led to the discovery that his voice would take him into journalism, and later Prime Minister Raila Odinga talked growing up in UK (Kisumu) where he watched amphibious planes land on Lake Victoria (flying routes from Europe through Benghazi, Khartoum, Juba, Kisumu, Salisbury, Johannesburg) and later recapped a sequential history of Boeing aircraft development. He later spoke of KQ which rose out of the grounding of East African Airlines, it’s early loss making years as a state airlines, the heavily debated decision to privatize it, the repayment it has made to Kenyan taxpayers, and plans to make Nairobi for an African hub with a new terminal to be built next to presidential pavilion and a second runway (reason for Syokimau demolitions)

KQ Expansion: The Airlines CEO, Titus Naikuni, spoke of the group's turnover of Kshs 90 billion and plans to double the fleet from 34 to 68 aircraft in five years (now ordered 787 and Embraer and 777-300's which can carry 400 passengers towards that). But he cautioned that there are not enough pilots in the country (that days' newspapers had KQ ad's seeking new pilots for Embraer jets) and that the airline may hire foreign pilots' out of necessity . He also said that they are happy that the airport (JKIA) is now showing construction progress and commended the Kenya Transport ministry for bilateral negotiations that have enabled the airline to fly new routes in Africa.

Ethiopian vs. KQ: As KQ prepared for their Dreamliner arrival & party events, Ethiopian Airlines ran some in-your-face ads in Kenyan newspaper with the caption that the first 787 landing in Africa was at Addis Ababa, and flown by an Ethiopian pilot. True on both - as Ethiopian Airlines which is a much older airline than Kenya Airways, with a longer history with Boeing and closer relationship in terms of customers, maintenance, training etc. Ethiopian was the first African Airlines to order the 787, (and they have even ordered Airbus A350 which is yet to be built)

Dream Flight?: There was some expectation over the three days that invited guests of Kenya Airways would get to fly on the 787 over Kilimanjaro and Mombasa but that was not to happen. The flight took place with on the last days with only a few Kenya Airways staff on-board, and passengers will have to wait till the end of 2013 to fly on KQ - or given the local African rivalry, Ethiopian may use one on the Addis Nairobi route to feed off our impatience!

Read more on the 787 Dreamliner

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Tuesday, December 20, 2011

Top Kenyan banking stories of 2011

Agency Banking took banking to your neighbourhood as kiosks became a bank - pioneered by Equity Bank, and followed by KCB (Mtaani) and Co-Op (Jirani) - mainly enabling cash deposits and withdrawals. Read more.

Cheque Truncation promised so much in new, more secure cheques, that would take a 1-2 days to clear compared to the current one week (four working days). However the launch was put off by a delay in printing of new cheques at several banks, and when the program rolled out a few months later, cheques resembled the old ones, and still cleared at the same old pace.

Fraud: There was increasing fraud reported as a result of faster, easier, banking through real time gross settlements and mobile banking, and there were more tales of thieves being arrested with dozen’s of skimmed ATM cards -
- so watch your statements every month

Mobile Partnerships: Banks surrendered on making customers use their own platforms for mobile banking, and instead opted to partner with Safaricom's M-pesa. In 2011, there were 8 banks that account holders could move money from their bank accounts to M-pesa and back - and these included large banks like Barclays, Co-Op, Equity and KCB. Also electronic banking is now dead as a premium products, and many of the same banks now have these as a free addition to their customers, saving them from the expense of having to print and mail statements to customers.

Super Profits: Did banks profit from the Central Bank's mismanagement of rates leading to weaker exchange rates? The Central Bank Governor said five banks did, but then refused to say who they were. Parliament continued to push and came up with a list, but could not prove the claims that the banks made super profits at the expense of the shilling.

Executive Suites: Management changes at KCB resulted in top managers leaving the bank - and moving to rivals like Family Bank and Jamii Bora where they cut equity based compensation deals based on performance (modeled after the Co-Op one of a few years ago).

Interest Rate Hike: Late in the year, there was an about turn in the monetary policy - to rescue the Kenya shilling that, and this came in the form of cut back in liquidity. From that, banks drastically raised their loan rates e.g. Mortgages at Equity bank went from 14% to 25% and many banks offered new loans at +30%. To stave off defaults, some banks held their existing loan rates steady, but with extensions of loan maturity periods. The Kenya Banker's Association then proposed other measures (PDF) such as limiting repayment rate hikes, not penalizing early payers and (unlikely) asking banks to absorb costs!

Monday, December 19, 2011

Guide to Lilongwe

A guest post by @chiefnyamweya, an Artist, Web-enthusiast, and Comic Creator.

Getting there: You can use Ethiopian Airlines at a cost of Kshs 62,500 (~$735) (and Kenya Aiways too). You have to have a yellow fever certificate. On arrival, you face the risk of losing checked in baggage, and as there is a severe fuel crisis, a taxi into town could cost $50

Getting around: I didn't pay much attention, as we had access to a private vehicle. But on the flip-side to the fuel crisis, there are no traffic jams!

Speak English, as Swahili is useless there, and you'll endear yourself if you learned a little Chichewa. The one phrase I picked up (since it was said a lot to me) was "Musojela!!" or "You'll get Lost!" Take any normal precautions as you'd take in Kenya, and I never once saw an AK-47 wielding cop here.

Hotels: You can get some very decent accommodation at Kshs .4,000 ($47) per night. Electricity is patchy, like Kenya, but a bit worse.

Dining: Excellent fish. They eat Ugali too, and their pineapples are sweet, but without the sting.

Communications: This was problematic. Roaming was expensive, and it was better to call Kenya, than have someone call from Kenya as you'd both be charged - and this was at about Kshs 25 per minute.

Shopping & Sight-Seeing: For shopping, there is Shoprite in both Blantyre and Lilongwe, while the two sights I got to see were Lake Malawi and Mount Mulanji. A local legend I heard about was about (people) disappearing on Mt. Mulanji.

Surprises: - Excellent roads here
- Women kneel in the presence of men when serving food or washing their hands (among other perceived gender inequalities)

EDIT (A second guest post from February 2012)

Getting there: Kenya Airways (KQ) has the most convenient direct flight from Nairobi - outbound in the morning and some days in the evening too. It cost $900+- and a yellow fever certificate is required on arrival, otherwise the immigration process not too much of a hustle.

Hotels: Finally, there is a new hotel in town that’s opened up operated by Chinese.. it's called the Golden Peacock, with lots of signs in Chinese which I find funny. They still have teething problems and shockingly just serve a Chinese menu… but costs roughly $100 b&b. There is another plush hotel with conference facilities coming up next to the Parliament. This is all great for Lilongwe as before these new hotels, it was a choice between Crossroads which is Indian owned and smelt very Indian and Sun Bird which is a government owned hotel – with the same style, ambience and service as the Block hotels that were government owned in Kenya back in the day.

Dining: They love ‘sima’ which they eat with red kidney beans a lot.. an interesting combination. Also there's a fish dish called Chambo is meant to be legendary and rice called Kilombero that has superb aroma. This particular rice swells about 3 times its original size so I guess depends on how one likes their rice.

Communications: Both Airtel and Vodacom are accessible though better choice is Airtel as there are no roaming charges. Vodacom via Safaricom too expensive to use in Malawi, and the cost of calls remains high for the country.

Shopping & Sight-Seeing: The Monkey bay area has the most beautiful lake.. very romantic with a number of excellent hotels in the vicinity.

Surprises: - It’s raining and the country is what can be called Maize country. Once you leave the airport, you see maize and you will traverse the country and see tons of maize along the road. These people are lucky to be food secure.
- The fuel crisis still persists thus hoarding of this commodity is rampant, but I still don’t understand it
- These people don’t build palatial homes in the countryside.. They all pretty much live in hut houses which is quite surprising….

Guide to Bamako

Getting There: Kenya Airways has direct (7 hour) flights to Bamako on Sundays and Wednesdays. Ethiopian Airlines also comes to Bamako but through Addis Ababa, and these costs about $1,000 - $1,200.

Getting Around: The airport is small hence has low traffic. Most people get visas upon arrival at US $40 and a taxi from the airport to hotel is about $50.

Motorbikes are the main mode of transport and they are driven both by ladies and men. There are old Ford model matatu-like minibuses with benches, but not doors or windows - and people crowd in there with their goods.

This is a French-speaking country with the local language being Bambara

Hotels: Most hotels offer and charge for bed-only, no breakfast.

Shopping & Sight-Seeing: Popular tourist buy items are local fabrics called Bazin. However, the market is not for the squeamish, as among the foods, fabrics, and artisans selling their wares, you may also find people skinning & selling monkeys, snakes lizards rats and dogs - mainly for voodoo. Also influenced by Benin, dogs are sold & eaten.

Odd sights: There are many instances of double births, and you see women begging on streets with small kids who are twins.

Friday, December 16, 2011

Urban Inflation Index: December 2011

What a year it has been, mostly not for the better with petrol and dollar prices setting records, and accompanied by other shortages. The Kenya government started a military anti-terror expedition in Somalia, and as war expenses can drastically alter government spending budgets, it was recently decided to bring the mission to the United Nations and have them offset the war cost to some extent.

On to the index comparing prices to three three months ago and year ago!

Gotten Cheaper:
Foreign Exchange: 1 US$ equals Kshs. 84 compared to Kshs 95.6 three months ago and 80.5 a year ago. That snapshot does not capture the roller coaster quarter the shillings has hard, dropping to an unprecedented level of Kshs. 107 to the dollar (and being ranked as one of the worst performing currencies in the world) before the Government instituted an interest rate hike and cut back liquidity to the banking sector. While the shilling was in free fall, and few could explain why, a World Bank blog post revealed that Kenya's exports were (at the time) not enough to meet the country's fuel bill, (Three years ago it cost Kshs 79 /$)

Staple Food: Maize flour, which is used to make Ugali that is eaten by a majority of Kenyans daily. A 2kg pack costs Kshs. 113, down from a record high of 119 in September, but still almost double the Ksh.s 69 cost in December 2010 (Three years ago it cost Kshs 97)

Other food item: Sugar : A 2 kg. Mumias pack which was Kshs. 385 in September is now 375, but still almost double the Kshs 195 of last December. In other news Kenya seems to have applied for another extension of a COMESA import cap, denying consumers the option of cheaper sugar imports to protect the largely uncompetitive local producers who have trouble ensuring adequate supply of sugar into supermarkets.

About the same:
Communications: These are largely unchanged though Safaricom announced a modest price increase by of voice call tariffs (which Orange are itching to follow) and @Kahenya says that corporate m-pesa tariffs have also been increased.

Beer/Entertainment: A bottle of Tusker beer is Kshs 180 ($2) (at a local pub) , unchanged from three months ago. The alcohol sector has a lot of competition now with the new brands being launched (Miller Genuine Draft) and others revived/getting new marketing pushes (Redds, White Cap Light, Heineken, Windhoek, Sierra) in a realignment of brands and owners between East African Breweries (EABL) and SAB Miller.

More Expensive
Fuel: A litre of petrol was Kshs. 124 up from 117.7 in September and 94.3 last December. Two days ago, in reaction to threats of transport operators to go on strike during Christmas week, the Energy Regulatory Commission (ERC) announced the first ever price reduction since the introduction of the price control regime - and for Nairobi the cost of petrol will be Kshs 119 (~$6.2 per gallon) till January 15 2012. (Three years ago it cost Kshs 92.7)

Utilities: Pre-paid electricity is about Kshs 2,500 per month (up from the regular purchases totaling 2,000). There are rolling blackouts as seen in the ads run by the Kenya Power company, spreading the shortfall across the country.

LPG - Cooking gas has been in short supply in different parts of the country, with many sellers in Nairobi not having any stock to sell for weeks. Those that do are selling them at increased prices - e.g. cylinders that used to costs Kshs 2,500 for 13KG, are selling at between Kshs 3,200 - 5,000 if you can find them.

2011 Kenya Bank Rankings

Comparing to last year with the 2010 top banks

11. NIC and National Bank (No. 7 last year) both with Kshs. 70.2 billion ($790 million) in assets and profits of about Kshs. 2 billion as at September 2011. National Bank falls from No. 7 as it has been passed by some fast growing banks on the list. Quiet year, NBK has grown it's loan book by 52% compared to a year ago, but had less profit than last year which is odd for most banks. NIC is about 28% larger than a year ago in asset and will have about 3.75 billion in profit for 2011

10. Citibank Kenya (9. last year) September assets of Kshs. 71.6 billion and profits of 3.25 billion in another quiet year for the bank.

9 Diamond Trust (10) September assets of Kshs. 74.6 billion and profits of 2.4 billion deposits up 35% and loans up 45% from a year ago but with expenses growing at a slightly faster pace than income .

8. Commercial Bank of Africa (8) with September asset of Kshs. 75.7 billion and profits of 2.04 billion. Corporate bank made new came under political rad on the banking side, opened new branches in new malls in Nairobi like Junction, Galleria and then has re-branded in October with new logo. as excepted a rights issue is planned to right a capital adequacy position

7. Investment & Mortgages (last year 11) September assets of Kshs. 79.5 billion and profits of 3.2 billion in a quite year for the bank except for its' rapid growth and entry into mortgage finance.

6 CFC Stanbic (6) September assets of Kshs. 145.2 billion and profits of Kshs. 2.38 billion. The bank just announced a rights issue. Earlier in the year, has some board changes with new Chairman, and this is the first year of separation of the assets of the insurance from the banking

5. Standard Chartered (4) September assets of Kshs. 165.7 billion and profits of Kshs. 5.49 billion. This is one of the few banks to have a lower profit than a year ago (Kshs 6.1 billion). Opened new headquarters, but it's automation of customers service has led to some customer frustration - retail and corporate

4. Cooperative (3) September assets of Kshs. 167 billion and profits of Kshs. 5.45 billion. East African Newspaper this week announced that they will withhold divided to finance capital growth and postponed a planned rights issue to 2013 - and it was awarded best bank in Kenya by the Financial Times of London

3. Equity (5) September assets of Kshs. 172.6 billion and profits of Kshs. 8.25 billion. Another award winning year for the bank who pioneered agency banking model which has been followed by KCB and Co-Op. In the news doe accolades for their CEO, a deal to collect park fees for the Narok Council in the Masai Mara, becoming the latest Kenyan bank to diversify to Rwanda, but also for an about turn with the rest of the banking sector when they raised their lending rates from 15% to 25%

2. Barclays (2) September asset of Kshs. 180.9 billion and profits of Kshs 8.9 billion. A quiet year of modest growth for the bank in danger of being overhauled by Equity

1. KCB (1) September asset of Kshs 273.9 billion and profits of Kshs. 8.6 billion. Increased it's gap from Barclays, and matches Equity’s reduced growth rate. Emphasized connectivity across East Africa, had a management shake up - and with i's regional presents, it has assets of Kshs. 322 billion ($3.6 billon) and profits of Kshs. 9.1 billion ($103 million)

Wednesday, December 14, 2011

Guide to Bangui

A guest post by @Anahi_Ayala who visited this CFA-zone country, that was home to the infamous former Emperor Bokassa, and which now has another grandiose project from a modern-day self-styled emperor - Gaddafi

Getting There: From Nairobi, you can take a direct flight to Bangui that's just over three hours, and a round trip costs about $1,000. Alternatively, you can fly with Ethiopian Airlines. However this is a longer flight - with stop over in Addis Ababa of 4/5 hours, then another flight to Douala (Cameroon) where passengers proceeding to Bangui are not allowed to disembark during a 1hr 30min) and then you take off to Bangui - and so the entire trip including layovers, is around 12 hours.

Visa's are done before hand, and the process is pretty easy and they usually give 3-month visas. There is no tax to on arrival, but to leave the country you pay a 10,000F tax (~$22 USD).

At Bangui Airport, the customer system is pretty meticulous: They search the bag of each person, and if you have goods that they think you have to pay extra for they will start shouting crazy prices - But you can settle it down with some bargaining and perhaps paying a bribe.

Getting Around: A taxi to town costs around 1500F ($3). People normally use shared taxis (which fit in as many people as they can) and there are also buses which leave from the main bus station in Bangui and go almost everywhere in the country. These take long time to arrive due to crazy conditions of the streets and sometimes break down along the way. Another way to do long distance travel, is using cargo vans (People sit on the top of the cargo. Some of the destinations (like the north of the country) take around 4 or 4 days to get there, while others like Obo can take around 7 days.

I was always going around by myself and had no problem, but one needs to be careful anyway since here in CAR poverty is at the extreme: a teacher salary is around $200, meaning that a normal person get around $50 a month. So if you go around with $100 in your pocket and people see it, is not good. I have friends here that got robbed in the street, but never anything violent: people just take your money from your pocket when there is a crowd.

Corruption is also widespread so if you get stopped by a policeman and you are doing something illegal this can cost you a lot of money. The interesting part of this is that the local population gives you advice in the street if they see you are doing something stupid – like someone told me to remove my phone from the back pocket to put in the front, or at the airport they came to tell me that my luggage did not have a padlock and that it was advisable to get one.

Security outside Bangui is another issue. The road from Bangui to Obo (South East of the country) is often attacked by the LRA (Lord's Resistance Army), so no one really uses it (you can take a UN flight to go there, twice a week, which costs $100 per ticket and you need to reserve to see if they have space – maximum $15 per person). The route from Bangui to Bambari (North) is also often attacked by bandits - normally there is no violence involved, they just rob you, get money & anything valuable and then let you go. The entire 5 regions in the North of the country are controlled by different rebels groups and the government suggests not to go there. Only private charters go there and there are no humanitarian agencies working in those areas, only visited by the Diamond Mines people (who have no problem going in and out).

Getting around, you spend around 8000F (including eating outside) in Bangui ($18). Outside Bangui not more than 3000F ($6)

The local language is Sango, but each region also has a local dialect. The national language is also French, but outside Bangui, few people can understand it and it is rare to hear them use it, and no one understands English

In Bangui there are around 3 newspapers published which publish not more than 500 copies: the quality is horrible, as they are all politically driven and the news is distorted in order to favor the political side take by the newspaper. Also there are no newspaper in English.

Business & Infrastructure: Where to Stay: There are several hotels in Bangui, all very expensive and with terrible services. One of the best one is the J&M hotel, which cost around $100 a night for a single room. They claim they have internet but it does not really work properly. They have 4 different locations: the J&M one is the best one, the others use the name but have a lower quality of services and rooms.

Another hotel is the Hotel du Centre or Hotel Central. It also costs $100 a night and the service is terrible: rooms are dirty and everything is broken. The hall of the hotel looks like an old school pub and it smells old.

There is a super luxury hotel that is being built by Gaddafi (well, was Gaddafi). It is supposed to be super fancy, with swimming pool and super nice rooms, but I have no idea how they think it will stay open as there is simply no way they can sustain the costs as there are not that many people that need a hotel in Bangui!

Another possible place to stay, is a center managed by the Nuns, and is part of the main cathedral of the city. The center is supposed to be for the missionaries that come to work in the country, but they also host guests for short time. It costs around $50 for a single room, the rooms are super simple but clean and they also offer breakfast with the room. You can have lunch and dinner of you want too for an additional $10. The nuns are very nice and dinner, breakfast and lunch are all served in a common room and at a common table (fixed hours: 7AM, noon and 7PM).

Electricity is not reliable at all, and it often went away in the middle of the day and during the night. Every office here has a generator to survive. I counted in my office and on average the electricity goes away every 30 minutes or one hours, sometimes for short periods, but sometimes for hours. Outside Bangui there is no electricity in the main cities or in the villages: everything works with generators and normally around 6pm, depending on the places, everything turns dark. Likewise, with water provision, there is no water in the houses, and everything is taken from water pumps.

Communications: Safaricom has roaming here but I did not use it to tell you how much does it costs. You can register with Orange and Telecell for them to activate your SIM card, but this may take more than 48 hours for the activation to actually work. If you want to use a USN bundle for this, you need to find a unblocked one (Orange had no bundles available anymore when I was here). All those bundles are second hand Huawei modems: You may buy a broken one, a blocked on and so on - and once you manage to have one that is working, you need to go to Orange or Telecell with your modem, the SIM card and the computer for them to set up the parameters. For Moov they said you just need to send an SMS, but I will only believed it if I see it then, since here everything is different when you ask then when you actually do it.

Overall, the cost of an international call is around $1/minute and using data on your mobile phone is a nightmare with local SIM cards.

Food & Life (Bars): The main dish is fish (capitain) and something very similar to Ugali, but done with Tapioca. They eat a lot of meat - goat, chicken and beef, but almost no vegetables. The local beer is called Castel but they also have Sudanese beers and Mocop Beer from Cameroon. One beer is 1000Fc ($2.5) in Bangui and around 500FC ($1.75) outside Bangui.

Shopping & Sight-Seeing: The main shopping area is the market in the center of the city called Marché Central and it is just blocks from Bangui's port. They have beautiful clothes and very good handcrafts. There is no such a thing as a shopping mall in the all country.

One place to visit in the country is the Les Chutes de Boali (Boali Waterfalls) which is around 2 hours away from Bangui. In Bangui there is the Musee de Boganda (Boganda Museum), which offers artifacts of the Central African Republic's history, and a collection of musical instruments. Another thing to see is the Place de la Republique, at the very heart of Bangui, with its large white arch were built as a monument to Jean-Bedel Bokassa, the corrupt dictator who was overthrown in 1979.

Shockers: How poor it is, how miserable, how there is absolutely nothing and how devastated it is, and the fact that they eat dogs, cats, and rats. That’s weird.

Monday, December 12, 2011

First World Problems in a Third World Country

Ory (@kenyanpundit) reigned some of us with a recent comment that people are complaining on twitter about a lack of parking at the Junction Mall in Nairobi, while there are people near there who don't have enough food to eat.

I realized that it's something that happens a lot. Today I spent the whole morning searching for cooking gas (LPG) which has been in short supply in Nairobi for about a month. Is that a superficial or a genuine subject worth ranting about?

Other common complaints on twitter include:
- Not having tap water or being caught in darkness when the electricity distributed by Kenya Power goes off (including both at Jomo Kenyatta International Airport - JKIA)
- MPesa downtime which are almost a weekly routine with Safaricom
- Bad service issues at the bank or with an internet service provider
- A delayed Kenya Airways flight
- Newly done roads that develop potholes within a few weeks
- Companies that don't respond to email
- Satellite TV that cuts off when it starts raining
- The increasingly bad traffic (and bad driving styles) around Nairobi

These are hardly life altering situations to tweet or complain about - and seem like trivial first world problems in a third world country. But they are unnecessary inconveniences for busy people with plans and appointments who have become accustomed to things like having regular electricity & internet connectivity, the ability to send money by phone at any time to any corner of the country, the convenience of boarding a flight to Mombasa and arriving in time for a court case or business appointment & return to Nairobi the same day, not having to pay a bribe or tip to get good customer service from a government or private office etc.

They have expectations of service that, when not met cause a un-anticipated re-deployment of resources usually precious time e.g. six hours driving around town, burning (sometimes scarce) petrol in search of (LPG) cooking gas or having to call in a previous favour to accomplish a routine matter.

The sad thing about this is that (at least in Kenya) politics is the missing link, and people here become accustomed to have low expectations about political class (Sonko) and their decision making. This is a fatal assumption as the 2007 election period showed and as we grapple with unnecessary & expensive challenges of infrastructure, distribution, under-employment, inflation, corruption, taxation, the solutions require the adherence of the political class to leave the third world

Friday, December 09, 2011

2011 Africa Awards

The award ceremony for the Awards took place in Nairobi on December 8. Sponsored by Legatum and Omidyar, this is the fifth year, and they received 3,300 entries from around Africa. Kenya has had numerous winners (AAR, Bio Deal, Colour Creations, Craft Silicon, Virtual City) , so it was not surprising that of the ten finalists, only one was Kenyan outsider (in financial services). Also it was nice to see and read about small and growing companies from other African countries that are not necessarily in the technology space

Criteria for eligibility consideration was the companies had to have a turnover of $1 - 15 million, a profitable track record of 2 years, at least 10 employees, not be subsidiaries of other companies, among other rules.

The overall prize of $100,000 went to Securico a woman founded security company that has thrived (edit) in inflation wracked Zimbabwe. It is an ISO certified company, with a turnover of $13 million and engage in diverse fields of security a workforce of 3,400 employees

There were six winners of $50,000:
- Chocolate City group which has a record company
- Expand Technology makers of smart card solutions from Mauritius. Their Kenya projects include Kenol cards and KWS Smart cards
- Pepperoni Foods from Nigeria
- SoleRebels from Ethiopia makes shoes, and are now available through Amazon.com
- Unique Solutions of Gambia which has grown from a cyber café to an ISP with reach in rural Gambia
- Victoria Seeds which grows seeds and has developed and trained a network of farmers in Uganda

Other finalists were:
- Cellular Systems of Senegal
- First Atlantic semiconductors from Nigeria
- Investeq Capital Kenya
The Africa Awards website has more info on the finalists.

Thursday, December 08, 2011

Celebrating the Cocktail Napkin

In Nairobi, there are thousands of conversations that happen at restaurant lunches or over evening drinks in bars. Most are mundane, sports related, money driven, contemplation of sex, and sometimes they are about business.

A lot of conversations don’t go anywhere beyond the bar. But out of a few of these, some will - through a chat, watching TV, or other exchange of idea - experience a moment of clarity (Think Pulp Fiction) - a realization of logic, or a plan or an urgent action to be taken.

However, by having one more drink or a new conversation, the idea is forgotten, or shot down or entrepreneurial innovation is mentally discarded as being unfeasible

One way to transform the moment of clarity into action is by using a cocktail napkin – i.e. sketch out ideas, plans, or action points to be taken after the bar session. Some great ideas initiatives around here, are the products of cocktail napkins like Praekelt and SwiftRiver.

So how can we celebrate the cocktail napkin? Kengeles Pub used to have a bell that they would ring, when a bar VIP walked in - perhaps the person who has had the million dollar idea can use it to signal that (i) he is not to be disturbed or distracted (ii) he has to dash out to start working on his life-changing plan (iii) he will settle the bill on his next visit!

Also bars can avail pens & classy note pads for aspiring people to jot down their ideas. This will help when (the next morning) the entrepreneur empties his pockets to find a crumpled, soggy napkin with illegible writing Also the note pad paper will look important enough that the spouse or maid about to do the house washing, will not throw it into the trash.

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