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When was the last time you stuck your legs in a bucket of ice cold water?  You may have done so, but did you do it to concentrate?  In order to not fall asleep?  I guess not, but that is the case with Daniel Kimani, one of the founders of KEEF (Kenyan Entrepreneurship  Empowerment Foundation). I’ll write about KEEF at a later stage. This short blog post is about the man who stuck his feet in ice cold water.

Daniel Kimani is out of a family of nine, they were dirt poor. When Daniel was nine his father died, but Daniel was old enough to realize that the family was in deep trouble and what that meant to his mother and siblings. And he made a pledge: He would change that, he would some day see his mother in a decent house, not the wooden shed they were living in.

-I wanted to pull my mother out of trouble, and I knew that the way out was education, so I studied hard in school, and I continued to high school. This is where the bucket of cold water comes in. With only the light from some kerosene soaked cloth stuck in a can and with my legs in the cold water I studied at night. The water was necessary to stay awake and not be tempted by the warmth of the bed, Daniel says.

He made his way through university. But on graduation day he was in the town of Eldoret, far away from the university.

- My mother asked me: I have 4000 Shillings, should we spend them on a trip to your graduation? The answer was easy, of course we shouldn’t. So I did not attend my own graduation. And soon after, my mother asked me to leave and make it for myself. So I walked away from my mother with two blankets, one pair of pants, one shirt and 2000 Shillings.

His mother is still alive, 80 years old. And please take a look at the photo. The house is there, it stands as a very concrete monument over Daniels’ determination to change things. And there’s also a shed. Not just any shed but the very one in which Daniel grew up.

Daniel Kimani has not only changed his own and his mothers’ lives. He has changed the lives of many through his work with KEEF.

- If I can help a little Daniel somewhere then my day is made, he says.

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The beginning of a new year is often a good time to hit the pause button for a little while, and on the one hand evaluate the year that just went, and, on the other, look ahead at the year to come. So why not do exactly that?

A year ago, we listed three key challenges for 2011: funding, profitability, and risk (for the full blog post, see 2011 – Challenges and Opportunities). As any active MYC4 investor knows, we would clearly be fooling ourselves to say that we managed to fully solve those challenges: despite significant efforts and promising leads, no additional funding came in during the year; MYC4 is yet to reach break even; and currency risk hit investors particularly hard last year.

What we can say with full confidence though is that important progress was made. Similar to last year, funding for the rest of 2012, with the current staffing and at the current cost level, is in place which means that the going concern of the company is not an issue. With the reduced costs and slightly increased income, MYC4 is for the first time in a position where break even is in sight, albeit still distantly. Finally, the results of the improved risk management procedures and hiring of experienced staff in Kenya have started to show, e.g. in reduced loan defaults, better quality loan portfolio, implementation of risk sharing agreements with all providers, better managed partner exits, half-yearly spot checks, and annual reviews. These three challenges will remain at the core of our attention in 2012.

A key opportunity for 2012 is portfolio growth. We have spent the last 1-2 years on improving the MYC4 business model, our organisational capacity and procedures, as well as our local partner network, meaning that our focus has been on quality rather than growth. We feel that we are now ready to start growing again, and we are experiencing a pull from MFIs that are interested in joining the MYC4 platform. Rest assured, we will not forget our (tough) lessons learned: quality must always remain at the centre of attention, and we strive for controlled growth with good quality loan providers.

To grow the portfolio, we need more capital on the platform. We see great opportunities in attracting larger investors to the platform again, while of course continuing to make MYC4 an interesting vehicle for private investors as well as other sources of funding that can be channeled through the platform. To do so, we see value in e.g. improving the investor reporting tools and also in taking another close look at social impact.

We are excited to get going and we hope that you will all join us in the next phase of the MYC4 journey.

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A warm holiday greeting from us to you…

Thank you for following MYC4 – we look forward to reach new levels in 2012 together with you!!

Though the MYC4 head office in Copenhagen is closed between Christmas and New Year, it does not mean that the business environment in Africa is closed… quite opposite, there will be plenty of businesses on the platform for you to fund so don’t hold yourself back on this front!

It could even be that you have not found all your Christmas gifts yet, well, a MYC4 account with a small amount on it would be a nice present to give as well as receive…

Merry Christmas + happy New Year to you!!

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‘Philanthrocapitalism’…

It is always a pleasure when Sir Richard Branson releases a new book. Yet, it is another dimension when his key message is aligning what MYC4 has used several years to realize; profit and purpose going hand in hand. Thanks for making my day, Sir…

In Screw Business As Usual Branson basically states that there should be no conflict of interests between philanthropy and profit-making! It is a shift away from profit alone being a driving force to a state where everyone feel the ‘responsibility for taking care of the people and planet that make up our global village.’ He uses the term: ‘philanthrocapitalism’ to capture the blend. We agree to this term, so far we have just been stating it as: ‘Business must be for a profit, but profit must be for a purpose’.

As he puts it in the book: “Imagine the potential if all the businesses in the world came together as a force for good, what an incredible place we would live in.” – spot on!!

You can download the first chapter for free from his Foundation’s site here.

In this regard, it is going to be very interesting to follow how Branson will transform his acquisition of Northern Rock and how he will navigate in a regulated world of banks. I guess, his initial provocation is a kind of an indicator of where this will lead; he tweeted some days ago to hear what people thought of the name of the bank as he was considering to call it: Virgin Rocks!

In my opinion, it is people made of this kind of material that will help turn around the ship and get financial services back on course (‘back on cause’ I perhaps should say) both in terms of:

  • Trust – I think he will add a layer of transparency, which is not very common for this industry
  • Mix of services – I believe that he will offer new services that take point of departure in people’s real needs – as he has done when entering several other industries
  • Philanthrocapitalism – obvious move also in combination of the above mentioned transparency

Would I like to see Virgin and MYC4 collaborate some day??

P.S. I was attending a very interesting conference on Friday: Remaking Finance and I must say that I am truly optimistic relative to how financial services are being developed. The scarry part, if you are a bank, it is not coming from within the traditional bank sector, but from businesses outside of this sphere and they are developing with a blazing speed. Yes, I would be rather scared if I was a traditional bank!!

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Three days ago a rather interesting competition ended in Kenya; ipo48

‘IPO48 is a 48 hours bootcamp event that aims at giving web/mobile startups a launch platform for their startups through of mentorship, networking and media exposure. A minimum of one of the participating startups will get an investment from the IPO48 investors before the 48h is up.’

The winner of ipo48 was Tusqee System, who provides a SMS based platform for schools to communicate directly with parents. Schools can save as much as 80% on their communcation budget!

Two others that were invested in during the competition was 6ix degrees and Ghafla!

Seen from the MYC4 lens, I find Logistis of special importance as they are addressing SME based book-keeping and accounting. I will follow them and see where it leads…

 

Interesting!! As I am writing this post, a mail from Alex Farcet (Founder of Startup Bootcamp and Startup Weekend) pops up;

Hi Tim,
It’s now happening!
Startup Weekend Lagos, the first Startup Weekend in sub-Saharan Africa (Sept. 9-11)

I am extremely happy about this specific message, as I am a volunteer Mentor at Startup Bootcamp/Weekend!!

There are several differences between ipo48 and Startup Bootcamp/Weekend, but one of the most important differences lies in the aspect that the startups in Startup Bootcamp/Weekend do not have to be within web or mobile (though majority is from this space).

I will keep you posted on this… have a great day!

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18 loans…

I was hinted by one of our investors yesterday evening with some happy news, which I want to share with you here…

Today 18 funded loans are closing!!

I have not looked into the statistics, so I am not sure whether this is the record, but it is up there and it is a nice and round number!!

“An investment a day, keeps the doctor away”

Tim

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Reverse innovation…

I am back from a nice holiday and I really look forward to post a couple of times per week in here again!

So, what post should I break the ice with?

I want to follow up on my post about apps in Africa, where I describe the enormous potential of apps in Africa (as developer and user). Amongst other I jot down: “…information exchange with doctors and vets…” as one of the ideas that I forecast would have a possitive impact on owners of animals.

Well, meet iCow!

iCow is a mobile service that in a cost efficient way connects small scale farmers with useful information about getting the best out of your cow(s).

iCow has won ‘Best African Mobile App’ and could be a brilliant example of Reverse innovation where an innovation sees light of day in the developing world first before spreading to the developed world (I write ‘could be’, because a similar service might already exist in the developed world?).

In Denmark, where I live, there is a lively debate about loooong waiting hours in the emergency room – how many waiting in front of you could have been helped via an extended service like this (utilizing MMS, chat, etc.)?

Have you seen some cool apps in/from Africa that we should know of??

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Update August 11th, 19:30 CEST: Good news; we are now up and running again! Duration of outage was a lot longer than expected and as always we will evaluate the process and strengthen MYC4 going forward. We look forward to welcome all your bids…

 

Update August 11th, 15:20 CEST:  We have been focusing our time on preparing for when Amazon would be up and running again. Unfortunately Amazon has taken a lot longer than their first statement we also communicated to you.  The good news is, just now it looks as if Amazon servers are up and configured.

We are now working to get everything back to normal and to get a full overview of the situation going forward.

Thank you for your understanding and sorry for any inconvenience this may have caused.

 

Original Post August 8th: If you have not experienced it yet, our site is ‘down’ at the moment.

The reason for the down time is caused by a power outage in Ireland where Amazon has their hosting facilities. Amazon informs that it is expected to last for 24-48 hours which means that the site might go live again later today.

For your information; we are working on alternative solutions.

Sorry for any inconvenience this may have caused!

Here is an excerpt from Amazon’s update to their clients:

We know many of you are anxiously waiting for your instances and volumes to become available and we want to give you more detail on why the recovery of the remaining instances and volumes is taking so long. Due to the scale of the power disruption, a large number of EBS servers lost power and require manual operations before volumes can be restored. Restoring these volumes requires that we make an extra copy of all data, which has consumed most spare capacity and slowed our recovery process.

You can also read a bit more about the disruption here: “Lightning in Dublin Knocks Amazon, Microsoft Data Centers Offline”

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Yesterday, via Twitter, I intercepted this super interesting history. WHEN it one day becomes a reality, it will for sure be a true game changer for Africa… actually for everybody!!

Basically, researchers from the leading University known for their dedication to constantly provide the world with new and cool stuff; MIT, have realized a break through in making solar cells very cheap – indeed very very cheap!

Instead of producing solar panels the traditional way where you coat glas with a conductive material (which should not be the world’s most healthy job), you now PRINT the solar cells!!

And that’s not all (sorry for sounding a little like a TV-Shop salesman, but I am kind of ‘tripping’ here!!); the solar cells also have the upsides of:

  • The cells can be printed on regular plastic, cloth, and paper
  • It weighs close to nothing
  • The cells are flexible
  • They are even durable

YES, I did read the part in the article where they state that they have only reached an efficiency of 1%, but without proclaiming being a specialist within this space, this IS a huge step! Indisputable, the first step is the most important step to take in new technology achievements – just think back how little ‘fuel’ the battery of your first cell phone could hold compared to just some years after that.

Next good thing is, when a new technology of this importance is introduced, it often follows a pattern where only a few in the world can afford the technology for some time and then gradually it becomes more and more attainable for you and I, but this achievement seems to break that pattern.

I love the outro of the FastCompany article (where they actually introduce the developing world); “Just imagine: a truck filled with millions of pieces of solar cell-covered loose leaf paper.”

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Appfrica??

This is truly promissing news… I just read an article in FastCompany about Apple’s future launch of their new iPhone. Hello Tim??? This blog is about business development in Africa, so why are you telling me this…

Well, it is correct that the launch of the iPhone 5 in September, which is even faster and with an improved camera, is not of true importance to this space, but here is the interesting piece that I want to share with you; it is predicted that Apple soon will be launching an iPhone Lite! Apple’s BoP strategy with this iPhone version is to skip the expensive and flashy components to keep the price low in order to make the phone affordable to the masses in e.g. Africa.

Imagine what it means to Africa when (not if!) companies like Apple throw their interest at them!! I am not just thinking about the revenues ending in Apple’s pockets (fine by me!), but rather on the apps that will be developed to make the everyday more convenient and efficient. I mean, since I got my first iPhone I now check the weather locally, I go to the bank, I buy my metro ticket, I check my Facebook account, I take pictures on the go, I am using it as a GPS device, I browse, I play music and games….

All of my daily actions listed above can be ‘translated’ directly to what will be able in Africa as well, but more importantly, I think it will go even further with lots of African app-developing companies that will mushroom, who will be developing apps that are specifically tailored for the masses in Africa. The list of opportunites is infinite, the first that comes to mind is; checking daily prices of potatoes in the local market, connecting buyers and sellers of larger stock of mais using Google maps, information exchange with doctors and vets… hoooh, I could go on!! Just imagine what value it would be for African farmers to be able to predict the weather…

Internet connectivity is raising with dramatic speed many places in Africa, which would take the information exchange to the next level. What if it was possible to watch news, go to school, etc. on your iPhone?

NO, Apple has not confirmed the iPhone Lite rumor, but as FastCompany states: “…feels like the same kind of official unofficial leak we suspect the company has used to seed positive Apple-centric stories in the The Wall Street Journal”. The thing that makes me believe that the above will become more than a blog post is the revenue upside for Apple entering the developing markets! I am crossing my fingers that’s for sure…

P.S. Should it be called aPhone???

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