Tag: business-management

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Europe’s $774 billion African desert solar power project launches

desertec-africa-sahara-solar-map

Investors and industrialists from 14 companies met in Munich, Germany recently to formally launch Desertec Industrial Initiative, a €400 billion ($774 billion) collaborative project to provide 15% of Europe’s energy via solar power from Africa’s Sahara desert by the year 2050. Since it was formally announced earlier this year, the project has gotten mixed responses from development and renewable energy groups.

Speaking about the benefits of the project MEED Magazine writes:

Desertec’s backers say the scheme will create jobs and boost local economies. Some go so far as to claim it could even reduce the number of economic migrants to Europe. Governments on both continents will need to collaborate to define a regulatory and legislative framework for the scheme. If Desertec can overcome these hurdles, it will set a precedent for international energy co-operation.

But critics of the project also give some strong points. New Scientist Magazine writes:

Critics are lining up to point out the project’s shortcomings. They say it could make Europe’s energy supply a hostage to politically unstable countries; that Europe should not be exploiting Africa in this way; that it is a poor investment compared to covering Europe’s roofs with photovoltaic (PV) solar panels; and that, while deserts have plenty of sun, they lack another less obvious but equally indispensable resource for a solar thermal power plant – water.

Despite the debate, the project seems to be moving ahead with North African countries like Tunisia and Algeria showing support and making plans.

What do you think? Is the Desertec project good or bad for Africa and/or Europe?

More about the project and it’s launch in the videos below.

If you can’t see the videos click here

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Morocco’s desert region a widescreen backdrop for Hollywood films

Speaking about the Ouarzazate region in Morocco, The Global Post reports:

Chances are you’ve unwittingly seen this region’s wild vistas in any number of movies. Among other locales, the desert was billed as Iraq in “Body of Lies,” dressed up as Jerusalem in “Kingdom of Heaven” and transformed into ancient Egypt in “The Mummy Returns.”

An array of ready-built sets, cheap labor and stunning landscapes has helped turn this sleepy provincial capital into a Third World Hollywood.

Production remnants abound, from concrete castles and plaster villages, to an American gas station falling to pieces beside a two-lane road. Featured in the horror film “The Hills Have Eyes,” its English sign offers non-existent beer to the Muslim drivers passing by.

But veterans of the country’s film trade say they wish more of their studios were in use this year. The global downturn has caused several big films to cancel or push back start dates, delaying cash upon which a growing population of technicians, actors and extras have come to depend.

The video below tells an interesting story of the North African desert’s draw for Hollywood.

If you can’t see the video above click here.

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Trending Africa Nov. 18, 2009: Jay-Z, Will Smith produce Fela! musical, China’s $10bn for Africa, Dinosaurs in Africa

fela_musical

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Microsoft, GE look to emerging markets for reverse innovation and profits

GE's healthcare reverse innovations

When GE chief executive Jeffrey Immelt wrote in this month’s Harvard Business Review that GE’s “Success in developing countries is a prerequisite for continued vitality in developed ones” and as a result the company was full on adopting the reverse innovation model, he sent shockwaves through the US-based business world. Looking at the numbers though, who could argue. The HBR article explains that “GE’s revenues outside the United States soared from $4.8 billion, or 19% of total revenues, in 1980, to $97 billion, or more than half of the total, in 2008.” all while the global economic crisis surged on.

… (business leaders) are shifting their energies from managing the present—surviving the financial and economic meltdowns—to creating the future. But we worry that too few U.S. business leaders have recognized that the future is far from home. Indeed, many of the innovations that propel global economic growth over the next few decades will originate in the developing world. – BusinessWeek

While the idea of reverse innovation – or trickle up innovation as the business practice is sometimes called – is nothing new, the business climate is ripe for it’s large scale adoption. With the global economy in peril, and waning consumer confidence particularly in the west, multinationals are increasingly seeking alternatives to old revenue and product development models. Reverse innovation – creating entry-level products for developing nations and then repackaging them for sale in richer nations – solves many problems for multinationals including reducing product development costs and increasing revenue by diversifying globally. But to truly see the gains of a reverse innovation business practice companies must make an honest effort to observe what makes it profitable; most importantly, understanding how emerging markets like China, India, Brazil and Africa, have become politically stable, more self reliant, and how innovation is now driven locally.

In a Businessweek article, C.K. Prahalad, author of the newly reissued The Fortune at the Bottom of the Pyramid: Eradicating Poverty Through Profits gave 5 tips for trickle up business innovation:

  • Affordable Products – Emerging nations can’t afford goods priced for the U.S. and Western Europe, which pushes companies to find inexpensive materials or manufacturing options.
  • ‘Leapfrog’ Technologies – Developing countries lack 20th century infrastructure and so have fast-forwarded to newer technologies such as mobile phones or solar energy.
  • Service ‘Ecosystems’ – Entrepreneurs in poor nations often must rely on others for help, creating new partnerships like video-game cafés where gamers test offerings such as online identity verification.
  • Robust Systems – Emerging markets require products that work in rugged conditions. A gadget sturdy enough to survive monsoons can handle spilled coffee in Boston or San Diego.
  • New Applications – Customers in poor countries have few product choices, providing market openings for add-ons that update and extend the lives of existing merchandise.

More on Reverse Innovation / Trickle Up Innovation

Interview: GE’s Vijay Govindarajan, chief innovation consultant, Discusses `Reverse Innovation’ (Bloomberg audio)
Vijay Govindarajan talks with Bloomberg’s Tom Keene and Ken Prewitt about technological “reverse innovation,” or developing products in emerging countries such as China and India for sale there.
[audio:GEReverseBloomberg.mp3]

Interview: Microsoft’s Trickle-Up Strategy – (Businessweek audio)
Microsoft is looking to developing-world audiences for inspiration on new products for the U.S. Now it is also increasingly hunting for R&D talent among students in emerging markets. The company’s Amit Mital explains.
[audio:MsftTrickleBusweek.mp3]

Feature: Innovation Trickles in a New Direction – (Businessweek video)

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The long-lasting impact of 2010 World Cup on S. Africa

2010 FIFA World Cup
Image by coda via Flickr

This guest post by John Kim

The Olympics and FIFA World Cup are often hailed as huge boons for their host countries or cities. At least that is how they are described prior to the event. Local organizing committees, civic and business leaders, and celebrities alike sell the economic, social, and cultural benefits of hosting international games.

But history has shown that the bold projections and promises are not generally met. A few noted successes have been the Barcelona Summer Olympics in 1992 and the 2000 Sydney Summer Olympics. Barcelona is hailed as a good example of using the Olympics as an opportunity for making long-term investments in the city’s infrastructure. Sydney’s event is noted as contributing to the successful branding of the city and country resulting in increased tourism.

But there have been many that have not lived up to their promise such as the 1976 Montreal Olympics. Vast structures were built only to never be used again and leaving the city and taxpayers deep in debt.

What will be South Africa’s legacy? No doubt the event will bring a huge boost to the GDP from tourism and the sale of merchandise. Efforts are being made to increase the footballing infrastructure in support of the next generation of South African footballers. Intra-city transport systems will see vast improvements. And large new stadiums are being built all around the country, which have contributed to the direct employment of many South Africans. But what will happen when the games are gone and preparations are being made for Brazil in 2014? What will happen to these gleaming and impressive new stadiums; the 94,000 person capacity Soccer City in Soweto. How will the local communities benefit in the long-term from these efforts and expenses?

The 2010 World Cup in South Africa, more than any before, comes with a huge responsibility to all involved; it needs to be a success. And it needs to be a launching pad. I argue that more than ever before multi-national corporations, long-time sponsors of the events, need to embrace this opportunity and make an even greater contribution to the country, beyond the usual sponsorship efforts. Corporations can help make a lasting impact, for themselves (increased brand awareness and market penetration), and more importantly, for the country and its people.

John Kim has his master’s in public policy from Georgetown University and has worked in Morocco, South Africa, and Malawi. He blogs about the World Cup and corporate social responsibility (CSR) at www.WorldCupCSR.wordpress.com and you can follow him on Twitter @WorldCupCSR.

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Designer Ozwald Boateng on dressing President Obama and his Made in Africa wealth initiative

In this three part series fashion designer Ozwald Boateng talks with CNN about outfitting President Obama for his recent Ghana visit and the designer’s new initiative “Made in Africa”.

Part 1: Tailoring for the President
CNN’s Monita Rajpal talks British-Ghanaian tailor Ozwald Boateng about his rise to fame and tailoring for President Obama’s Ghanaian visit.

Part 2: Made in Africa Ozwald Boateng talks about ‘Made in Africa.’ An organization designed to promote wealth and self sufficiency in Africa

Part 3: Designer to role model
British-Ghanaian tailor Ozwald Boateng explains his plans to help tailor Africa’s image problems.

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Maker Faire Africa edition 2009 (video)

Below is an excellent video documenting the recent inaugural Maker Faire Africa event held in Accra, Ghana. The event was organized as a a celebration of African ingenuity, innovation and invention, with strong participation by local makers. Find out more about the event and the upcoming 2010 Kenya edition at the official website here. A job well done by the organizers.

via whiteafrican

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Obama and Hillary Clinton visits a boom or bust for African business

hillary_clinton_congo_africa

As President Obama and Secretary of State Hillary Clinton both prepared to make visits to Africa recently there was a sense of excitement and anticipation. While the excitement was primarily within the African diaspora, other communities around the globe also began to share in the excitement. But as Obama and Clinton have come and left the continent, many have questioned if the “historic event” had a big enough effect on investment and perception the African continent. It may be too soon to tell but if the statistics are any indication, heightened global interest in Africa may already be starting to wane. So might African countries have missed an opportunity to move the continent’s re-brand efforts to another level and capture global attention in a BIG way?
africa_tv_mentions

According to Snapstream.com’s TV trends tracking service, between October 2008 and the months up to Obama’s visit to Ghana, the average mention of the word Africa on the primary American television networks was about 20 to 30 mentions per day with mentions reaching the highest of 169 in any one day. In the first two days of Obama’s arrival in Ghana, mentions of Africa on US television jumped to about 719 mentions on July 11th, the day Obama gave his speech in Ghana. Also Secretary of State Hillary Clinton’s recently concluded tour of Africa and the momentary controversy in Congo, has kept Africa in the news for the second month straight in 2009.

By all standards, and considering the context, these are enormous global opportunities where African countries could heighten awareness and promote any partnership opportunities they have. While some might say that the attention was only regulated to political forums, an analysis of the overall mentions of Africa across social media media platforms shows the contrary.

An analysis of Google search trends shows that global search for terms associated with Africa have begun to climb as the continent stays in the news. As both President Obama and Sec. of State Clinton went on tour in Africa, the countries they visited have seen an increase of search activity, another great opportunity to the tourism industries.

obama clinton africa trends

But with all the possibilities of global business, I still wonder how much sustained business opportunities are really being made available for African entrepreneurs and non-governmental businesses.

In their reflection of Obama’s visit to Ghana the Daily Kos writes

In Cape Coast where the Obamas visited the slave fort – Cape Coast Castle, and the palace of the Oguaa Chief (of Cape Coast), the crowds were similarly excited yet disappointed that they had no opportunity to see President Obama’s remarks given while there. Nevertheless, the mood remained upbeat with local residents stating that they understood the need for all the souped up security arrangements for this particular US President. At the airport later in the early evening, prior to departure, the crowd that gathered there did finally get the chance to see and hear Pres. Obama. Everybody else simply stayed glued to their teevee sets all day. My other beef was that not a single local Ghanaian journalist was granted an interview with President Obama, yet Anderson Cooper of CNN gets one. Yes, Obama had an interview with AllAfrica.com prior to his arrival in Ghana, but a local interview would have helped cut through the physical security cordon and enabled the US president to directly hear from the local media that he praised so much in his speech for their critical work in advancing democracy in Ghana.

Certainly tourism to Ghana and possibly Africa in general is going to rise as many in the west will associate the country with a presidential visit, stability, and democracy, but will that be the end result? Could the Ghanaian government have done more to secure long term more widespread attention to Ghana? Could Secretary Clinton’s visit have been more impactful to everyday Liberians or Kenyan’s beyond the prestige factor? Neither Obama’s or Clinton’s trips were merely for entertainment and there are policies in the works, but if Africa is to truly benefit from them the attention and information exchange must be sustained by Africans over a longer period of time. Only through synchronized planning between African entrepreneurs and governments, could such high profile events truly be maximized for the rapid growth of African countries.

What do you think? Were the President Obama and Secretary Clinton visits a boom or bust for African business?

According to Snapstream.com’s TV trends tracking service between October 2008 and the months up to Obama’s visit to Ghana, the average mention of the word Africa on the primary American television networks was about 20 to 30 mentions per day with mentions reaching the highest of 169 in any one day. In the first two days of Obama’s arrival in Ghana, mentions of Africa on US television jumped to about 719 mentions on July 11th, the day Obama touched down in Ghana. Also Secretary of State Hillary Clinton’s recently concluded tour of Africa and the momentary controversy in Congo, has kept Africa in the news for the second month straight in 2009.
By all standards, and considering the context, these are enormous global attention opportunities where African countries could heighten awareness and promote any partnership opportunities they have. While some might say that the attention was only regulated to political forums, an analysis of the overall mentions of Africa across social media media platforms shows the contrary.
An analysis of Google search trends shows that global search for terms associated with Africa have begun to climb as the continent stays in the news. As both President Obama and Sec. of State Clinton went on tour in Africa, the countries they visited have seen an increase of search activity, another great opportunity to the tourism industries.
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Corporate America’s Changing Views on Africa

Baird, the management consulting firm, recently asked senior officers of 30 American Fortune 100 corporations about their current attitudes on investing in Africa. While some of the results showed that not much had  changed, the study also revealed that corporate America was increasingly optimistic about Africa’s role in their future business strategies. Three of the key points of the study, “Inside the Boardroom: How Corporate America Really Views Africa” are:

• USA Inc. is more interested in Africa than before, because the African market appears increasingly attractive, but Africa has tough competition and high hurdles for US investment. Education is at the top of the US corporate wish list for Africa; “educate your people so that we can employ them”

• The African countries that hold most interest are South Africa and some countries in the North, like Egypt; there are also some pockets of interest in West Africa, most notably Ghana, Nigeria and to some extent Angola; while some in the South (Botswana and Mozambique) and East (Uganda and Kenya), are also being watched

•To make itself more attractive for US investment, Africa should:

  • Invest in education , health and infrastructure
  • Ensure the rule of law and a business-friendly climate for all investing companies
  • Show it is serious about attracting foreign investment
  • Market itself as aggressively as other regions of the world
  • Demonstrate opportunity cost of not investing

A recent CNBC broadcast from Lagos, Nigeria (video below) also expounded on what Africa has to offer corporate America.