A group of 2016-17 Oxford MBAs go on the annual Africa Trek. This year’s destination: Nairobi and Kigali
Part 1: Nairobi
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
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.
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.
“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
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.
“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)
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
Naivasha and Nakuru
After a week of company visits we left the city to see some wildlife and have some well-earned rest.