iAfrica innovating Africa

Ross Macdonald

The next decade will likely mark the first since the industrial revolution when emerging economies add more to global growth than all the developed countries combined. In our view, Africa will be a core part of this economic renaissance.

McKinsey 2010

$2.0 trillion Africa’s GDP

4.5% annual GDP/capita growth

50% of Africans in cities by 2030

350 million Africa’s middle class

1.1 billion Africa’s population

860 million mobile phone users

< 5% broadband penetration

> African middle class > 350m (larger than US pop.) > 45% of GDP growth in 2000’s from consumption > only 1/3 GDP growth from resources (in 2000’s) > pvt consumption grew $568bn in 2000’s > forecast to grow another $ 410bn by 2020 > Africans are brand / quality conscious > recent international entrants – Gap, Zara, Walmart > longstanding local – Shoprite, MTN, Standard bank

the rise of the African consumer

Children study by kerosene light > dangerous > unhealthy > expensive

85% of Africans have no electricity

www.solar-aid.org

> no health impact > increases incomes by 20% > reduces carbon emissions > improves education > unit costs ≈⋲ $10 > distributed by MTN

Innovative solution – Solar lamp

Ready Set fenixintl.com

Innovative solution – Solar charger

> multi-use charger > mobile phones > camera batteries > lamps > computers / tablets

Africa’s energy solutions …

> depart from centralised energy model > leverage renewable, distributed energy > local energy generation & consumption > obviate transmission & large grids > reduce dependency on fossil fuels > reduce carbon emissions > generate local jobs > reduce opportunity for corruption

> 820m mobile subscribers > 80% penetration > second largest market > fastest growing market > voice was the killer app > mobile data rapidly taking over

telecommunications : from voice to data

> Growth in bandwidth > 80 Gbps in 2008 > 35460 Gbps today > 400 fold increase in 5 years

voice to data

1.  More Africans clicked on Google Ads than Western Europeans in 2010 2.  22% of urban Africans spend > 10 hours a week online

voice to data : Internet trends

> urban Africans are high Internet users 1,2

> mainly on mobile devices > mainly on social networking > e-commerce & banking still slow > broadband penetration low

voice to data : expand internet access

> broadband infrastructure > data centers > last mile esp. wireless networks > backbone – long haul / WAN / MAN > cloud services > application development, SAAS > ISP’s, hosting

voice to data : Financial services

> banking (bank in a box – BankServ) > mobile wallets / payments (M-Pesa) > stock exchanges (Africa wide platform) > insurance > cyber-security

voice to data : Agriculture

> AgriManagrTM > Optimizing the agri supply chain > Leveraging mobile

> Kilimo Salama (‘safe agriculture’) > Agri-insurance scheme > Insuring farmers against drought/floods > Insurance Co/Telco/Agri-Suppliers

voice to data : Health Care

> Tele-radiology ( Medisoft) > rapid remote diagnosis

> Cardio-pad >  remote ECG’s

> Med Africa > Medical information via mobile

> mobile data & services will dominate

> broadband penetration will accelerate

> cloud services and applications > data ‘platform’ for a rising tide of prosperity > further enable rising consumer class > Africa will regain it’s rightful place

Summary

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