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Interview with Chad Larson: Co-founder and Finance Director, M-KOPA

 “If we do this right we will be the leapfrog story for rural energy.”

Whilst on her MBA trek to Nairobi and Kigali this year, Gillian Benjamin had the opportunity to meet up with Oxford alumni working in social impact organisations.

Chad with M-KOPA solar light and solar TV systems.

Chad Larson with M-KOPA solar light and solar TV systems.

I had the honor of meeting with Chad on the 2017 MBA Africa Trek, where 17 MBA students travelled to Kenya and Rwanda to meet the businesses and individuals driving Africa’s growth story.

Chad is one of three co-founders of M-KOPA, a Kenyan headquartered company with a mission “To upgrade lives by making high-quality solutions affordable to everyone.”

The company is best known for their household solar system – the entry level unit comprises an 8W solar panel, 3 LED lights, a LED torch, a radio and a phone charger. The main innovation comes in the payment system. Customers pay approximately £22 upfront and then pay a 40p daily instalment over a year to pay off the remainder of the unit, where after it is theirs.

Once paid off, customers can then extend their payment plan and buy a range of other items including a solar-powered TV, a water-harvesting tank, a bicycle, a cook stove, a starter-pack for chicken farming or a smartphone.

M-KOPA currently employs 1,000 full time staff and 1,500 sales agents in East Africa.

Chad was part of the ’06 – ’07 cohort.

Why did you decide to pursue an MBA?

I had been in investment banking for ten years and I wanted a change in career, and to shake things up and broaden my horizons – which it did – because I met my two business partners in the process!

The MBA also introduced me to social entrepreneurship as it was not something that had been on my radar before. I was exposed to all the inspiring stories about what different people were trying. This really broadened my mind about what could be done. Then a couple of years after this exposure we built up the courage to start up M-KOPA.

Were there any classes in particular that really shifted your thinking?

The marketing class with David Arnold really made me think differently about distribution and how you think of a marketing problem in terms of bottlenecks and gatekeepers. I had never thought of Marketing like that before. The Strategy and Social Finance classes were also great.

How did the MBA help you develop your founding team?

Jesse Moore (also 06-07) and I met Nick Hughes during the MBA when he came to give a talk about the mobile-phone based money transfer system he was developing in Kenya. Jesse kept in touch with Nick and worked with him on the summer project in 2007, and Nick and I reconnected through Jesse in 2009, and launched the pilot tests of what eventually became M-KOPA in 2010.  I think we were lucky on the skills each of us brought –we had the right mix of engineering skills combined with those in finance and operations.

We also had the right mix of optimism and skepticism. Early on, I tended to be the data and numbers-based skeptic of the three founders, with Nick as the big thinker of where technology is going next, with Jesse more of the “lets get it done” person driving execution. This tension between different mindsets creates a lot of value, because we approach a problem from different angles. So it was a winning combination of both skills and temperament. You also balance each other highs and lows, which is critical, as it’s sometimes really hard.

The MBA Africa Trek ‘16 – ’17 visiting the M-KOPA office in Nairobi.

The MBA Africa Trek ‘16 – ’17 visiting the M-KOPA office in Nairobi.

How did Oxford help get you started?

Jesse was a Skoll Scholar and had connections to impact investors. Also the Skoll Centre and the Scholarship gave us a set of introductions to the type of people and organisations who might fund a business like this. Those early connections were pretty critical to our initial fundraising.

Advice for anyone thinking of pursuing and MBA?

For me it was an amazing break from ten years of thinking about bonds and fixed income derivatives. It’s an opportunity to shock your mind out of it – even though you are still studying business you are exposed to so many different things.

It’s good to get out of the specific and back into the general. It also grounds the practical work you have been doing in a bit of theory.

It was also great because you have different people bringing all this experience from all these different areas into the classroom.

What is life and business like in Kenya?

It’s a great place because there are still real problems to be solved here. You can start businesses that solve real basic problems where in the developed world you are really just solving rich peoples’ problems. Here the country is still being built, you see the country growing up around you, and we are a small part of that.

Kenya is also a great place to be headquartered to serve the countries around it. You can hire great engineers, programmers, finance people – there are so many super smart and energetic Kenyans coming out of university here. The people we are employing are just as bright as the guys coming out of Ivy League schools. That’s my favourite part I think – just the interaction with the staff.

What are you most excited about M-KOPA’s future?

If we do this right we will be the leapfrog story for rural energy – the story of leapfrogging from old technology to the new. We want to be at the centre of this story. But the idea needs to move into practice with strong financial discipline and a good ground-game – and we have a decent head start with half-a-million customers.

The solar power system in a foothold into the home. For us the initial system is really the beginning of a finance relationship with M-KOPA. We are focusing our energies on building a ladder of energy-efficient household products, from basic to more advanced, to help low-income customers improve their lives.

Celebrating Oxford Saïd Impact Careers

If you’re an Oxford Saïd alumnus working for an impact organisation, helping to scale a start-up, running your own social enterprise, or going down another impact path, let us know!

To celebrate the impact careers of our alumni, we are offering one individual a ticket to the 2018 Skoll World Forum. Other high impact Oxford Saïd alumni will be brought back to Oxford to give them a chance to share their story with students and the wider University community at an award ceremony in the spring. 

Find out more about this initiative, tell us your story, and apply!

Interview with Dennis Muchira: Dalberg Global Development Advisors

Whilst on her MBA trek to Nairobi and Kigali this year, Gillian Benjamin had the opportunity to meet up with Oxford alumni working in social impact organisations.

Photo of Dennis Muchira

“The MBA brought a completely different way of thinking to compliment my technical mind-set. It added a dimension to my thinking that I didn’t even know I needed.” – Dennis Muchira

Dennis is a recent Oxford Saïd 2015 – 16 alum who has been based at Dalberg in Nairobi since January 2017. I had a chance to chat to him at their office while on the 2017 MBA Africa Trek, where 17 MBA students travelled to Kenya and Rwanda to meet the businesses and individuals driving Africa’s growth story.

Dennis completed his undergrad in Actuarial Science in Nairobi, followed by a Masters from Columbia. He then worked as a life insurance actuary for PwC in New York for four-and-a-half years before being overcome with an itch to come back and create positive impact on his home continent.

What made you choose Oxford Saïd?

I started looking at various programmes in the US and the UK and Oxford stood out to me for two reasons. The school is very strong in social impact and I knew this was the direction I wanted to take – the Skoll Centre was housed there – so this attracted me.

They also have quite a number of scholarships available for African students. I applied and was fortunate to get admitted and receive a Saïd Foundation Africa scholarship which helped tremendously.

How did Oxford enable your career transition?

While at Oxford I was constantly on the lookout for careers that had a social impact component to them. I joined the Social Impact Oxford Business Network (SI-OBN) and through this I learnt about Dalberg. The idea of getting into a consulting firm that was purely about impact got me interested.

Oxford was also key in preparing me for interviews at Dalberg. I went from not knowing how to do a case interview to being very comfortable with the process thanks to my peers.

In Dalberg cases you aren’t just thinking about the client, but about multiple stakeholders and the broader ecosystem, and most times you aren’t actually thinking about profit but about the impact the client should have. So I tailored the standard consulting frameworks I learnt at Oxford and honed this to Dalberg.

I also organised the Africa Trek from my cohort and while we were in Johannesburg we visited the Dalberg office. Here I met Carlijn Nouwen, the Director of the Joburg office and she put me in touch with Nairobi recruitment. Then when a position arose I was able to apply and was already on their radar.

What mind shifts did the MBA bring?

Actuarial training is very rigorous and technical but it is only one way of thinking about business situations. I’m grateful for this training as it did imbue with top-of-class analytical rigor. However, in taking courses like Strategy, Leadership and Entrepreneurship it felt like there was a brain muscle I was exercising that I didn’t know existed. The MBA brought a completely different way of thinking to compliment my technical mind-set. It added a dimension to my thinking that I didn’t even know I needed. Now I’m able to think about problems analytically and strategically – I’m able to handle the complexity that comes from dealing with projects that involve lots of stakeholders and many moving parts.

What advice would you give to other students who are thinking about pursuing an MBA?

The first step is to do a lot of introspection to figure out what your career journey has been so far, your strengths and weaknesses, and your personal and career goals. You need to be brutally honest with yourself about who you are and what you want to achieve and use that to choose a school that aligns well with your goals.

Different schools have different focus areas – for example some are renown for finance, others have a heavy focus on consulting while others provide a lot of support for entrepreneurs. This affects the type of people the schools attract and the students they ultimately admit. So figure out which schools will make you a better person, a better professional and provide you with access to a strong alumni network in your areas of professional interest.

The second step is to prepare for the applications. Take the GMAT as early as you can and get it out of the way. Do as well as you can on the GMAT because this informs scholarship decisions, in addition to other factors. Also reach out to others who have done it before who can give you guidance on your essays. My first drafts were quite unrefined, but in time I was able to craft my story and communicate this well.

Students shared lunch with Dalberg staff followed by a Q&A session.

The MBA Africa Trek 2016 – 17 visiting the Dalberg office in Nairobi.

Tell me about your job search process:

I applied to some of the larger corporate consulting firms during the MBA recruitment cycle but I didn’t quite enjoy the cases as much as I enjoyed Dalberg’s case interviews. While completing Dalberg’s I was like, “yeah, this is actually stuff I could see myself doing for the long-term.” It was interesting to me and got me engaged.

Dalberg interviews have a fit component where they try to understand your background, your motivation for being in consulting in the development space and understand whether you’ll fit with the culture – the company is not hierarchical and growing fast.

How has the city changed since you lived here?

There is a lot of infrastructure development – a lot more buildings and roads. There are also a lot more people. Walking around the city it feels a lot more crowded –almost kind of like a New York.

Also there is a lot of exciting stuff happening in entrepreneurship and innovation. There are all these really cool businesses emerging and you can just see it growing. We also have many multi-national organisations setting up in Nairobi like GE, IBM and Google. So it’s really growing in terms of infrastructure, population and business.

What is the alumni network like in Kenya?

We have quite a strong presence in Nairobi. In my cohort, there are two of us and many people from years before. A lot of people are working in social enterprises and in consulting in organisations such as M-KOPA and Open Capital Advisors.

What are you currently working on?

I have just completed my first project which was an ecosystem study of the digital financial services available to small-holder farmers in Tanzania. We did this to identify gaps in the system where our client could then intervene to ensure the farmers could access digital financial services.

What do you enjoy most about the work?

It’s really engaging and impactful. And it’s varied – for example my first project was on financial inclusion. My next one might be on health or energy. So it changes all the time.

Dalberg’s culture is flat and the people are very approachable. I have colleagues who I call friends as well. Here people genuinely care about you and you are encouraged to bring your whole self to work. It’s a different environment and I’m really happy here.

Celebrating Oxford Saïd Impact Careers

If you’re an Oxford Saïd alumnus working for an impact organisation, helping to scale a start-up, running your own social enterprise, or going down another impact path, let us know!

To celebrate the impact careers of our alumni, we are offering one individual a ticket to the 2018 Skoll World Forum. Other high impact Oxford Saïd alumni will be brought back to Oxford to give them a chance to share their story with students and the wider University community at an award ceremony in the spring. 

Find out more about this initiative, tell us your story, and apply!

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Africa Trek 2017: Oxford MBAs visit Rwanda

By Gillian Benjamin, Oxford MBA (2016-17)

A group of 2016-17 Oxford MBAs go on the annual Africa Trek. This year’s destination: Nairobi and Kigali

Part 2: Rwanda

A city in transition: the above image shows the recently built CBD which has sprung up in the past decade, while the image below shows the areas hugging the CBD.

A city in transition: the above image shows the recently built CBD which has sprung up in the past decade, while the image below shows the areas hugging the CBD.

Rwanda is a small land-locked country, with a population of 11.2 million. For most, the atrocities of the 1994 genocide come to mind when the country is mentioned. However, the government is trying hard to overcome this history through pursuing a strong development agenda, leading to impressive annual GDP growth of 6.9%.

Arriving from Kenya, the contrast between the two countries was immediately stark. During our cab ride from the airport I noticed the perfectly manicured shrubs along the side of the road and the immaculately clean streets, with workers out-and-about sweeping, cleaning and repairing. I also noticed the beauty of the city – rolling green hills covered in terracotta houses, transitioning into new skyscrapers as we neared the city centre.

New offices and hotel developments in the CBD.

New offices and hotel developments in the CBD.

Another defining feature of the city are the thousands of motorbike taxis that swarm up and down the hilly roads ferrying commuters to different parts of town. A highlight of the trip was using this mode of transport to get between company visits, with a group of nearly twenty suited-up MBAs pulling up concurrently.

Hailing a large group of moto taxis to take us to our first company visit.

Hailing a large group of moto taxis to take us to our first company visit.

Jumia Food

Operations manager Albert Munyabugingo discussing the growth of Jumia Food in Kigali.

Operations manager Albert Munyabugingo discussing the growth of Jumia Food in Kigali.

Jumia Food is part of the Jumia group, a leading actor in online commerce in Africa with an ecosystem of online services and marketplaces including: Jumia (online shopping site for electronics, fashion and more), Jumia Market (allows users to sell their products online), Jumia Travel (African travel bookings), Jumia Food (food delivery service), Jumia Deals (classifieds), Jumia House (real estate), Jumia Jobs (recruitment), Jumia Car (vehicle marketplace), Jumia Service (e-commerce fulfilment and delivery).

Jumia Food launched in 2013 in Rwanda and was the first food delivery service in the country. Operations manager Albert Munyabugingo described the various tech components of the business, including the customer, vendor (restaurant) and dispatching software, and how these all had to integrate seamlessly to ensure a good customer experience.

The business model is based on the 10% – 35% commission paid by the restaurants to Jumia, with higher commission getting restaurants more visibility on the platform. The restaurants are given twenty minutes to prep the orders, something we believed would be quite a challenge given the more relaxed approach to service we had experienced. Also interesting to hear was their strategy to grow their middle-band customer, as they saw a higher customer lifetime value here than targeting wealthier, ex-pat clients who are more likely to leave the region in the future.

Munyabugingo spoke about some of the issues of doing business in Kigali, including internet outages (which necessitates Jumia staff manually phoning through orders to restaurants) and heavy rainfall which can affect delivery times.

The Office and Impact Hub Kigali

MBAs visiting the Impact Hub, run by Jon Stever, third from the left.

MBAs visiting the Impact Hub, run by Jon Stever, third from the left.

Jon Stever is an American expat who founded The Office in October 2012, the first open community working space in Kigali. Comprising a five storey-building in central Kigail, the space brings together makers, entrepreneurs and organisations that are working in social enterprise and civic and cultural arenas. Stever is also involved in running Impact Hub Kigali, a coworking space that operates out of The Office.

Stever gave the group a great overview of the entrepreneurial landscape in Kigali. In terms of issues, he spoke about the lack of trust and collaboration between local entrepreneurs and entrepreneurial support organisations which hampers collaboration and cross-pollination of ideas. He also discussed the high cost of internet connectivity and issues of down time. However, it was extremely inspiring to hear him talk about government efforts to improve business infrastructure, and the lives of Rwandan’s more generally.

Stever previously worked as an economist for the Ministry of Finance and Economic Planning and spoke about the passion of civil servants and the tight performance management practices used to hold all civil servants to account.

 One Acre Fund

Seeing One Acre’s work on the ground – we visited a village in Karongi to speak to farmers who use One Acre’s services and observe some of the fields where they were testing different seed.

Seeing One Acre’s work on the ground – we visited a village in Karongi to speak to farmers who use One Acre’s services and observe some of the fields where they were testing different seed.

A member of the One Acre team discusses the trials that are being carried out to test different seeds. Tests such as this one help the organisation select the seeds that are best suited to the local weather and soil conditions and produce the highest yield.

A member of the One Acre team discusses the trials that are being carried out to test different seeds. Tests such as this one help the organisation select the seeds that are best suited to the local weather and soil conditions and produce the highest yield.

We visited One Acre’s Rwanda headquarters in Rubengera, a 2.5 hour journey west of Kigali on the edge of Lake Kivu, which separates Rwanda from The Democratic Republic of Congo. The journey was breathtakingly beautiful with lush rolling hills covered in thousands of small rectangles of cultivated land dotted with homesteads.

It was interesting to note that the further we journeyed from Kigali, the worse the roads became, eventually the jeeps we were travelling in were using the full width of the road to dodge the wide potholes that pitted the asphalt. This reminded us all of the transport and logistic difficulties companies and organisations face when working in the region. It also perhaps points to the tension in government spending between urban and rural areas.

One Acre’s headquarters are built into the hills over-looking Lake Kivu and comprise accommodation and work space purpose-built for their staff, 98% of whom live in the field. Each space has a deeply peaceful feel – the kind of place you might come to do a mindfulness retreat. The physical design of the space fits their purposeful mission: to support small scale farmers to increase yields and to move out of poverty. The organisation currently serves half-a-million small-scale farmers, with the aim of increasing their reach to a million by 2020. They deliver their highly-localised services through a field staff of roughly 5000, working in Kenya, Rwanda, Burundi, Tanzania, Uganda, and Malawi.

Jeremy Golan, Financial Advisory Services Manager for Rwanda, described One Acre’s offerings, which have been refined over their ten years of existence:

  • Farming inputs, including high-yield seeds and fertilizer.
  • Credit to purchase inputs, which is later collected via community-based groups to build accountability. One Acre also offers other finance products such as crop insurance.
  • Distribution / delivery to bring the faming inputs to within walking distance of the farmers.
  • Training on agricultural techniques.
  • Market facilitation to increase profits.

Golan, who has a background in consulting, emphasised that the organisation is run very much like a private sector company, with many of the management team coming from corporates or consulting. This ensured that operations were kept lean and the organisation was constantly innovating to find better ways to serve their farmer clients. It was inspiring to hear that some of the best minds, pulled from the likes McKinsey & Co, where now channelling their skills and energy to help those most in need.

What struck me most about One Acres work was the level of trust they need to develop with farmers, as their work targets the heart of their client’s livelihood and identify. Offering people alternative seeds, or recommending slightly different farming methods is essentially asking farmers to shift their behaviour away from well-practiced norms. It seems this trust is created by building a staff who are farmers themselves and live in the villages One Acre aims to serve, by running highly-localised tests at village-level to show the value of different seeds and techniques, and by taking a very long-term view on building both social and infrastructural capital.

To conclude, the Africa Trek will definitely be one of the highlights of my MBA. It was a rare opportunity to have a privileged access to CEOs and other business leaders, and to learn first-hand about the business models and activities they are pursuing to help build the region. As an African, and as a business student, I am hugely excited by amazing work I witnessed in East Africa. The experience opened my eyes to the opportunities of the region, but also reminded me that there is much work to be done to ensure those living in poverty are supported to move up and live more dignified lives free of carting heavy water drums, free of preventable illnesses and free of the structural violence that comes with poverty. There is much work to be done.

Author: Gillian Benjamin

Gillian Benjamin - HeadshotGillian Benjamin is a social design practitioner from South Africa. Driven to use design to create social impact, she founded a design studio to serve social justice organisations and later worked at the Cape Craft and Design Institute running design thinking projects in healthcare, education and the built environment.

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Africa Trek 2017: Oxford MBAs visit Nairobi

By Gillian Benjamin, Oxford MBA (2016-17)

A group of 2016-17 Oxford MBAs go on the annual Africa Trek. This year’s destination: Nairobi and Kigali

Part 1: Nairobi

 

A man pushes his bicycle through Toi Market, a thriving second-hand clothing market in Nairobi that stretches multiple blocks, eventually ending in Kibera slum.

A man pushes his bicycle through Toi Market, a thriving second-hand clothing market in Nairobi that stretches multiple blocks, eventually ending in Kibera slum.

In April 2017 17 MBA’s spent an unforgettable two weeks in Kenya and Rwanda. The student-driven trek aimed to expose participants to the business context in each country. Organised by students from the region, it tapped into local networks to give an ‘insiders view’ of each city. During the April break there were three other concurrent international treks and electives taking place in Johannesburg, New York, the Middle East Singapore and Hong Kong.

I chose to join the Africa trek as I had limited experience and knowledge of East Africa (ashamedly, as I am a native South African). I was curious to learn more about the thriving economies of the region and gain a comparative understanding of Eastern versus Southern Africa.

The trek exposed us to diverse companies and business models, from a consulting firm helping international development organisations better support local SMEs to an off-grid energy company serving the bottom of the pyramid. Through each company presentation we learnt a little more about the nuances and opportunities of the region.

While the company visits were fascinating, another area of great value came from the opportunity to spend two weeks with my classmates. In the rush of a 12-month MBA there is limited time for slow, deep conversation. However, the interstitial moments of travel provided the perfect opportunity to bond; a 20-minute cab ride to the airport or sharing a meal over dinner gave each of us the opportunity to learn a little more about others’ backgrounds and future ambitions. The accrual of these small interactions created a special bond that will live on well beyond the MBA.

Open Capital Advisors

Students on the MBA Africa Trek at Open Capital consultants in Nairobi, with alumnus Holden Bonwit in the centre.

Students on the MBA Africa Trek at Open Capital consultants in Nairobi, with alumnus Holden Bonwit in the centre.

Open Capital Advisors is a management consulting and financial advisory firm with 40 employees spread across offices in Kampala (Uganda), Lusaka (Zambia) and Nairobi (Kenya). They offer consulting services to local businesses, investors and international organisations, with two-thirds of their investment work being in the social impact space. We were hosted by Oxford Saïd alumnus, Holden Bonwit (MBA 2013 – 2014).

Bonwit shared what he believes are the three of the biggest challenges for growth in the region:

  • Talent acquisition and lack of human capital to implement strategies
  • Lack of infrastructure
  • Lack of access to capital for SMEs (due to a miss-match between the needs of SMEs and the instruments offered by international Development Finance Institutions)

He spoke of the enjoyment he gets from working on meaningful development projects where his skills and expertise have real impact. He also introduced us to the concept of the Kenyan side-hustle (or multiple side-hustles), evidenced by the fact that a single family usually has about 11 discrete income streams.

Safaricom

MBA students meeting with CEO of Safaricom Bob Collymore and his team

MBA students meeting with CEO of Safaricom Bob Collymore and his team

We were honoured to spend time with Bob Collymore –  CEO of Safaricom – Kenya’s largest telecom. It has a valuation of $ 8 billion and accounts for approximately 40% of the Kenyan stock market. M-PESA, the pioneering mobile money solution, is one of Safaricom’s products.

Continuing the narrative from Open Capital Advisors, Collymore spoke of how their people strategy is their biggest strategy, saying, “You can have a bad strategy but a good team and the outcome will be good, however, the opposite is not true.” With a firm belief that quality products are created by engaged staff, he spoke of how the company strives to ensure their people have a good work-life balance and get eight hours of sleep – allocating each staff member a ‘thrive-buddy’ to keep them on track and ensure they aren’t overworked.

The company takes their position as a dominant player seriously, seeing it as their responsibility to act as a good corporate citizen and set the tone for others. Safaricom was one of the first corporates to release a full sustainability report and embrace the Sustainable Development Goals, with each corporate function selecting the goals they wish to work towards and then feeding back progress directly to Collymore’s office.

Collymore’s commitment to sustainability and good corporate governance is also evidenced by his membership in the B-team, which brings together business leaders like Unliever’s Paul Polman, Richard Brandson, and Arianna Huffington to push businesses to become more transparent and sustainable, as well as sitting on the board of the United Nations Global Compact, the world’s largest corporate sustainability initiative.

Andela

Two Andela students working in the chill-out area of the Nairobi campus.

Two Andela students working in the chill-out area of the Nairobi campus.

“Brilliance is evenly distributed, but opportunity is not.”

Andela’s goal is to spread tech opportunity to Africa by finding and training Africa’s next generation of tech talent and connecting them to demand in the West. This is achieved through a two-sided business model: on the supply-side, African candidates apply to join a four-year paid Technical Leadership Program designed to shape them into elite software developers. On the demand-side, a 50-strong sales team based in the US sells Andela’s services corporates looking for excellent tech talent.

Joshua Mwaniki, Country Director for Kenya, told us they receive around 2000 applications per month from people eager to join the Fellowship. With an acceptance rate of 10 – 15 people monthly, applicants have a 0.5% chance of getting in to the programme. What differentiates the Andela from other tech training programmes is their comprehensive Learning Map, which maps a Fellow’s progress against clearly delineated hard and soft skills on a daily and weekly basis.

Andela’s biggest challenge is gearing up to train enough talent, as there is currently more work available than there are programmers to work on the jobs. But upping supply in Africa, Andela is hoping to spread opportunities a little more equally. Their new campus currently under construction will house 1000 students and will go some way to achieving this vision.

Oxford Saïd Alumni Dinner

Current students met with recent alumni who are currently working in Nairobi at Burn and Dalberg.

Current students met with recent alumni who are currently working in Nairobi at Burn and Dalberg.

M-KOPA

Chad Larson, Chief Credit Officer, Co-Founder and Oxford Saïd alumnus shows students the entry-level M-KOPA solar unit.

Chad Larson, Chief Credit Officer, Co-Founder and Oxford Saïd alumnus shows students the entry-level M-KOPA solar unit.

M-KOPA is a pioneer in off-grid, pay-as-you-go solar power systems. With a team of 300 customer care agents on call 24-hours a day, and an on-the-ground salesforce of over a 1000 people, the company is growing rapidly.

Their entry level unit comprises an 8W solar panel, 3 LED lights, a LED torch, a radio and a phone charger. Customers pay an upfront payment of £22 and then pay a 40p daily instalment over a year to pay off the remainder of the unit, where after the unit is theirs. The unit comes with a one-year warranty and has an estimated battery life of four years.

On the ground sales agents help customers calculate the cost-benefit analysis of switching from kerosene to solar, by adding up how much they spend in a year on kerosene, batteries and charging their mobile phone. Once totalled, the entry level M-KOPA unit comes in around one-third cheaper during the payment year, then giving clients a further three years of energy before they need to replace the battery.

Most interesting however is how the company views solar as the foothold into a customers’ home. When a customer is nearing the end of their year-long repayment schedule they receive a call from an M-KOPA agent offering a variety of products; a solar-powered TV, a water-harvesting tank, a bicycle, a cook stove, a starter-pack for chicken farming or a smartphone – any of which can be purchased by extending their existing payment plan. Chad Larson, Chief Credit Officer, Co-Founder and SBS Alum stated, “We are a finance company, selling useful capital assets that save people money.”  M-KOPA is focusing their energies on building a ladder of household products, from basic to more advanced, to improve the lives of the poor.

Dalberg

Students shared lunch with Dalberg staff followed by a Q&A session.

Students shared lunch with Dalberg staff followed by a Q&A session.

“Until the change is done, our work isn’t done”. These were the words of Edwin Macharia, Dalberg Partner and Regional Director of Africa, speaking about how the firm goes far beyond the work of traditional consultants (who are renowned for leave their strategy decks for clients to implement). Dalberg is a platform of companies committed to global development and innovation, including Dalberg Global Development Advisors (consulting), D.Capital (Investment advisory and impact investing), D.Research (data, intelligence and analysis), DIG (Design Impact Group focusing on human centred design) and an implementation support arm.

Dalberg is ten years old and currently has six offices on the continent. Their client mix is one-third governments and large international organisations (such as the UN, DIFD and the World Bank), one-third social sector organisations and foundations and one-third private businesses.

The company is also focused on creating self-driven projects where they spot opportunity areas. Macharia recognises the privileged position the company holds, with contacts in just about every major foundation and development agency in the world. He said, “We are one, maybe two phone calls away from anyone in the world. What are we going to do with that?” One such example is Unleash, an ambitious project driven by Dalberg and other partners, bringing 1000 young innovators into a global innovation lab focused on the Sustainable Development Goals.

Maua Project (Wrigleys)

Mathare Slum on the outskirts of Nairobi.

Mathare Slum on the outskirts of Nairobi.

Maua project representatives speaking to MBA students in the Mathare Slum, describing the benefits of the project on the ground.

Maua project representatives speaking to MBA students in the Mathare Slum, describing the benefits of the project on the ground.

The Maua Project is a project of the Mars Catalyst, Mars Incorporated’s internal think tank. In 2014, Mars’ leadership announced their intention to become the ‘most mutual company’ in the world, delivering value to all stakeholders involved in their value chain.

Maua, Swahili for ‘flower’, is a route-to-market mutuality project in Kenya. It develops micro-entrepreneurs, called Uplifters, who act as sub-distributors connecting stockpoints to retailers, predominantly in areas where Mars currently doesn’t distribute to outlets. This creates work for the Uplifters, and increased market penetration for Mars.

The project makes use of a ‘hybrid value chain’, partnering with a range of organisations and non-profits to support various programme elements like recruitment, training and access to tools. Partners include a logistics company, World Bicycle Relief, Ashoka, a microfinance company and M&E support. In 2016 Maua had 368 Uplifters involved in the programme and aim to increase this to 590 by the end of 2017.

Oxford and Cambridge Dinner hosted by Oxford Saïd alumna, Adema Sangale

The Africa Trek group was hosted by Adema Sangale, Vice-President of World Bicycle Relief (https://worldbicyclerelief.org) in Africa, who brought together alums from both universities who work Nairobi.

The Africa Trek group was hosted by Adema Sangale, Vice-President of World Bicycle Relief in Africa, who brought together alums from both universities who work Nairobi.

Naivasha and Nakuru

After a week of company visits we left the city to see some wildlife and have some well-earned rest.

It’s not every day that you get to summit a dormant volcano (Mount Longonot) and then get to hike around its rim.

It’s not every day that you get to summit a dormant volcano (Mount Longonot) and then get to hike around its rim.

Day safari at Lake Nakuru National Park.

Day safari at Lake Nakuru National Park.

Giraffes at Nakuru National Park.

Giraffes at Nakuru National Park.

Bird watching on Lake Nakuru.

Bird watching on Lake Nakuru.

Hanging with the hippos on Lake Naivasha.

Hanging with the hippos on Lake Naivasha.

Part 2 of Africa Trek 2017 coming soon where the MBAs head to Kigali…

Author: Gillian Benjamin

Gillian Benjamin - HeadshotGillian Benjamin is a social design practitioner from South Africa. Driven to use design to create social impact, she founded a design studio to serve social justice organisations and later worked at the Cape Craft and Design Institute running design thinking projects in healthcare, education and the built environment.

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From Uganda to Oxford

John Walugembe; Skoll Scholar 2016-17, social entrepreneur, and the Founder of Better Livelihoods in Uganda. John shares his candid story of how he came to Oxford to study his MBA.

“It is very painful to remember my daughter”, Maria said. “She was only five years old”. “I had a lot of hope in her”. “I wonder, what I could have done better”. “I was certainly lucky that Dr. Matovu was willing to attend to her. It was unfortunate however that it was too late!” This story by Maria – a distressed mother of two living in the Bwaise slum of Kampala, Uganda – is not very different from those of many others in Uganda and other developing countries. According to a recent report by Water Aid, only 30% of Ugandans have access to improved sanitation. The situation is even worse in urban poor communities, especially slums, where children collect water from contaminated gutters or ground water. The result of this is that at least two one million and five hundred children die annually, from diarrheal related illnesses.  The contamination primarily results from lack of proper disposal for excreta.

How does an organisation set up to support poor communities, survive off the very people it is supposed to assist. Indeed, it was and still is a dilemma!

When I founded the Better livelihoods Uganda, four years ago, I recognised that there was a need for a fundamental shift in the way water and sanitation issues are handled. Were communities, expecting so much from their governments that they failed to do for themselves, what was in their means to do? Were some Non-Governmental Organisations fostering a syndrome of dependency and raising the expectations of communities for handouts, to the extent that they exacerbated these problems? Which market approaches could be employed to ensure that communities contributed more to addressing these sanitation challenges. From the onset, I thought it prudent to make the organisation lean and limit its dependency on external financing. As you can imagine, this was no mean goal. How does an organisation set up to support poor communities, survive off the very people it is supposed to assist. Indeed, it was and still is a dilemma! However, we resolved that unlike the traditional NGO, we would seek to play a more facilitating role among the key stakeholders in the sanitation ecosystem.

We piloted our work in the Rwenzori region in western Uganda, particularly in the Municipalities of Fort-Portal, Kawenge, Kyegegwa and Kyenjojo. Using the diamond approach (a model first piloted by Waste Advisors in the Netherlands) we have been able to accelerate access to clean water and sanitation facilitating a well-functioning system of local stakeholders that facilitate the delivery of sustainable sanitation services. The bulk of our work has involved supporting entrepreneurs and other sanitation stakeholders to build more hygienic pit-latrines. As of last year, over 1400 direct jobs have been created in the region, the amount of fecal sludge collected had increased tenfold to 4,000,000 kilograms, the costs of accessing sanitation services have reduced from $30 to $5 and over 4,000 people have directly accessed sanitation services.

I thought it prudent that I acquire the skills to build and grow an organisation with a great vision, such as ours.

It would be great if I told you that after this, everything worked just fine and we have simply encountered success, upon success. Unfortunately, as someone whose academic background was not in business management, I thought it prudent that I acquire the skills to build and grow an organisation with a great vision, such as ours. An MBA looked an attractive option. The more I thought about it, the more counterintuitive it seemed. If I desire to engineer, social change, why not pursue a qualification in development? In the end, it only seemed logical that if our approach seeks to use market based approaches to tackle the sanitation challenge, there is no better preparation than an MBA from a business school with a focus on social entrepreneurship. In the end, the Oxford MBA looked the best fit for me.

Did I look at other business schools? Certainly! So, why the Oxford MBA? Well, the Oxford MBA was unique in a number of respects: First, the Oxford MBA is a rigorous one year programme. This was particularly attractive for me, as it would ensure that I get back to Uganda, in the shortest possible time to continue with my work.  Second, the Saïd Business School through the Skoll Centre, places a lot of emphasis on social entrepreneurship. For me, this was the ultimate attraction. Additionally, the possibility of social entrepreneurs, like myself, benefitting from the generous Skoll Scholarship, set the Oxford MBA apart.

Going forward, Better Livelihoods like other nonprofit organisations must look for new models of generating revenue streams while fulfilling its expanding mission. One possible strategy could be to set-up a social purpose business as an innovation for both the financial and operational sustainability of the organisation. The mission of this social venture could be to offer clean water, sanitation, health and hygiene solutions throughout Uganda, on a commercial basis.

In conclusion, I look forward to this year and taking advantage of all the opportunities that Oxford has to offer!

John was recently featured on the BBC World Service, Business Daily Show, where he sat on a panel discussion on Africa’s Social Entrepreneurs. Listen to the iPlayer recording.

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From the United States to Oxford

Skoll Scholar, MBA and above all, Engineer, Ashley Thomas, shares her story, not of HOW she got to be at Oxford, but WHO.

As I sit in a 150-year-old book shop (very new by Oxford standards) listening to Duncan Green, Oxfam GB’s chief strategic advisor, discuss his book How Change Happens, I’m again struck by how lucky I am to have ended up here, at Oxford, and as Skoll Scholar. In thinking through how I have managed to arrive at this moment, my instinct is to create a neat narrative: In 2008, as a freshly minted mechanical engineer, I moved to Ethiopia to work as a product designer at iDE, a NGO building social enterprises and agriculture value chains in Africa and Asia.  Since then I have worked as an engineer and innovation project manager for some of the best (in my humble opinion) social enterprises: Evidence Action and MKOPA solar, and dabbled in some policy work managing the DFID resource centre on climate and environment. Building on my experience in the water sector, I then read for an MSc in Water Science, Policy and Management prior to my MBA as part of the 1+1 programme at Oxford, in theory preparing me to solve the worlds’ water problems through my own social enterprise.

However, after listening to Green’s view of the non-linearity of change, I am tempted to reframe my story not as a narrative but as the summation of ripples in a web of complex relationships and interactions. If you can forgive my ramblings in non-linear narrative, I want to tell the story of my path here framed through the relationships that don’t make it onto a CV, and instead focus on the cast of characters that sent the right ripples into the network that guided me to this fantastic place.

Katherine McIntyre: My grandmother is the embodiment of tenacity. She was a flight controller in the Canadian Air Force during World War II, a travel writer in the USSR during the 1980’s, current record holder for the oldest person to do a zip line, and in few days, at 93 years old, will be travelling from Toronto to Oxford to see my MSc graduation. She has traveled to more than 45 countries, published in over 30 newspapers and journals and has founded 3 companies.  I can only aspire to emulate her singular focus, fearless independence, and her lifelong curiosity.

Left: Ashley Thomas, Right: Kirstie McIntyre

Left: Ashley Thomas, Right: Katherine McIntyre

Left: a young Kirstie McIntyre, Right: Kirstie McIntyre holds the current record holder for the oldest person to do a zip line

Left: a young Katherine McIntyre, Right: Katherine McIntyre holds the current record holder for the oldest person to do a zip line

Paul’s enabling, entrepreneurial approach strongly resonated and has become central to my own philosophy.

Paul Polak: I met Paul when I was nineteen, naïvely aspiring to fight global poverty, but I only knew about top-down traditional development organisations. From attending his lectures, receiving his mentorship through the Intentional Development Design Summit (IDDS), and ultimately collaborating at iDE, Paul introduced me to a new way of thinking. Instead of a charity approach, Paul showed me an untapped market of 1 billion people seeking to lift themselves out of poverty. Paul’s enabling, entrepreneurial approach strongly resonated and has become central to my own philosophy.

 

Paul Polak

Paul Polak

Carlos Machan: Carlos is one of the most creative product designers I have ever met. Born in rural Guatemala, his engineering knowledge is all self-taught. I met Carols in 2007 while he was an instructor on the International Development Design Summit at MIT and continued to work with him in Guatemala, where he taught me how to weld, design, and build my first water pump, the very skills that landed me my first job at iDE.

Carlos Machan

Carlos Machan

It was here, in front of this bonfire, where I first heard about the Skoll Scholarship, and began dreaming of becoming a Skoll Scholar

iDE Workshop and Engineering Team in Addis Ababa, Ethiopia: In Addis, our engineering team founded a workshop/office/guest house that was the backbone of our product development. It was also the location of many bonfires, beers, and late night pontification. It was here, in front of this bonfire, where I first heard about the Skoll Scholarship, and began dreaming of becoming a Skoll Scholar. It took 8 years of indecision, dreaming, and three failed attempts at the application before it became a reality.

iDE Workshop and Engineering Team in Addis Ababa, Ethiopia

iDE Workshop and Engineering Team in Addis Ababa, Ethiopia

MKOPA Engineering Team: This crew is one of the brightest, most driven, and friendliest teams I have ever worked with. From Eric, standing at 6’2” and with a sense of humor to match, to Berita, easily a foot shorter in stature, but making no compromises in heart or brains, this group of people embodies the types of teams I hope to continue to work with. They also solidified my desire to get an MBA. While they were begrudging the fact I’d “no longer be an engineer”, working with them made me realise that if I hope to run a company like MKOPA and a team like this one, I have a lot of learning left to do.

ashleymtblog-mkopa

MKOPA Team

While this is absolutely not an exclusive list, these are some of the threads in fabric of the story of my path here. From the nascent daydreams over Ethiopian bonfires to making the decision to come to Oxford after working on a manufacturing line in Dongguan, China, studying an MBA at Oxford through the Skoll Scholarship is the realisation of the network of friends, colleagues, places, and events that have guided me to this fantastic place.

All photos above were provided by Ashley Thomas.

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