Nairobi, Silicon Valley of Development

Nairobi, Silicon Valley of Development

Nairobi Uncategorized

Nairobi, Silicon Valley of Development

The mist is still clinging to everything at this early morning hour of one of Nairobi’s chilliest Augusts when we arrive at Kangemi slum to meet Maria Springer, one of the founders of Livelyhoods.Nairobi Sillicon Valley

It just took us 20 meters to leave the rich mansions of Springvalley and Hillview, to cross the highway, and to arrive at what the UN now call “informal settlements,” the home of 50% of Kenya’s urban population.

Maria, American native of 25 years, with a shine on her face is waiting for us in front of iSmart, the new shop her organization opened last Friday in the neighborhood, which now serves 650,000 people.

Behind her young age and her genuine face is hidden a strong determination to provide jobs to the youth of Nairobi’s slums.

¨My story is intimately linked to Kenya. My aunt and uncle used to live here for years when I was a kid. At that moment, they hosted a young boy from the street and raised him. We started writing to each other and when I arrived here, I decided I wanted to have a positive impact on his reality, and the best tool was to provide them with jobs to keep them off the street.¨

2013-08-16 12.59.36So Maria decided to hire young professionals as sales force to reach the last mile between private companies and hard-to-reach potential customers.

200 salesmen have already been hired from Livelyhoods in order to distribute high quality and ecologically respectful products like solar lamps, cooking stoves or female hygiene products to the base of the pyramid.

The story of Maria is not exceptional in Kenya’s capital. The local ecosystem has become an extremely favorable soil for many entrepreneurs, mostly expatriates willing to set up sustainable organizations with a social impact.

Kenya is the new Far West – the next Frontier. The climate is good, the infrastructure relatively developed in the Sub-Saharan context and the government is stable enough to let private ventures develop pretty freely, at least during the first years.

The mobile penetration of 75% and the growing internet economy makes it possible to reach customers all around the country. Kenya’s population is well trained, and access to the Mombasa harbor makes any international trade quite convenient.

However, unlike in Europe or the US, there are still core needs to be addressed. Many people here lack access to the things they need most: farmers to markets in which to sell products, students to quality education, and citizens to vital information. The social issues are extremely present with a country of 46% living under the poverty line and 3.9 million slum inhabitants.

Plenty needs to be done. And Nairobi knows it, as the diplomatic and humanitarian capital of East Africa.

Thousands of staff of United Nations agencies and International NGOs are dealing with surrounding humanitarian crises, such as the Somalia situation and the 500,000 refugees in Dadaab, Africa’s largest refugee camp in the north of the country.

And yet, at the difference of the traditional cooperation model, a new generation of entrepreneurs is trying to tackle social issues like unemployment, education, and healthcare in a sustainable way.

I’m not talking so much about donors and beneficiaries, but more about clients and investors. The entrepreneurs focus here on answering a market need: farmers who want to produce in higher quantities and qualities, private companies who reach new customers or find employees through a social or environmental approach, employing marginalized youth, distributing ecologically respectful products, providing services to excluded population.

Kenya has become a haven for social business. As Samir, 23 from NY says, “Here you can actually start a project and see it grow. If you can make it in Kenya, you can make it anywhere.¨ His organization SunCulture is developing an innovative solar powered irrigation system allowing medium sized farmers to diversify their production and multiply their income by ten in one year. Their target is simply the 30 million farmers living in Kenya representing 24% of the country’s GDP. There is massive potential, both here and in neighboring countries. (See SunCulture’s elevator pitch videos here and here.)sunculture

And this kind of potential offers an exciting perspective of bustling business opportunities for any young and committed professional.

The next generation is flocking into Nairobi aspiring to merge career and meaning: the thrill of setting up their own project in a fascinating environment of an emerging country reaching a tipping point, and the satisfaction of making a positive impact on their environment.

The sons and daughters of the Wall Street Generation are now startupers in East Africa. And some may even compare the city to an exotic playground for young entrepreneurs as the polemic articles from Jonathan Kalan underlined.

And as Lino Carcoforo, the young investor from Innovation for Africa, says: “We will have to see from all these initiatives which actually gather the necessary business skills to make it to the other level.”

Yet, even if the perennity of some of the existing ventures is still to be proven, one can’t deny the vibrant atmosphere of the city where business incubators, start-up competitions, and early stage investors gather. And Kenyan entrepreneurs, sometimes lacking the visibility of their international colleagues, are also emerging and leading some of the country’s most promising ventures. Let’s hope this current hype will prove impactful in the coming years and change at least the vision most still have of our original continent.

By: Aurelie Salvaire

What Innovation Means

What Innovation Means

Uncategorized

Innovation—it’s all about hybridizing the right animals…

The first challenge when bringing external stakeholders to emerging markets is, of course, to defy the stereotypes. Many people have never been to Africa and are fuelled by the media’s dramatic vision of riots and political instability. Unfortunately, what makes these markets extremely appealing, high growth rates and constantly changing environment, are precisely why they are too much of a threat to the eyes of Northern investors who are looking for some kind of security.

jugaad-innovationYet, that is exactly what we are searching for: the “jugaad”, or kenyan “jua kali” where innovators do improvise—they try, fail, and can relive the process. It’s like a videogame where you can always gain your life back. As Navi Radjou explains it, “Corporate leaders confronted with increasing volatility and uncertainty in their own business environment must also learn to think and act flexibly.” Our main goal is thus to challenge the traditional vision of emerging cities and to show the power of improvisation of this frugal innovation: in the face of nothing, can I create something?

At The A Factor, we deepen our roots in different networks, formal and informal, in order to scout and identify sources of inspiration. That is also how our own internal process works: far from being sequential and planning a long time in advance, we generally proceed with a multiplicity of simultaneous open windows in our browsers, leveraging social media and tapping into local, regional, or international groups or networks like Sandbox or Makesense to get connected to the right people in an extremely limited amount of time. We try, we propose, we fail, we adapt and move on, constantly.

We are moved by the same spirit as Makeshift, a worthwhile print and online magazine about creativity in informal economies, displaying projects where regulations and resources may be scarce but where ingenuity is used incessantly for survival, enterprise, and self-expression.

Our main asset (but also our main struggle) is our firm belief in the power of hybridization. We believe that innovation comes out of mixing profiles or concepts that were not initially “supposed” to meet. Let’s remember not so long ago, who would have dared to mix social concepts and business? Or philanthropy and profit? Who would have thought that we could answer crucial social questions and yet be economically sustainable?

Many of the local innovators we give visibility to are social entrepreneurs, either mature and established ones, such as Ashoka and Acumen fellows, but also early stage ones in the pipeline like the Africa Yoga project, who empower youth from the slums through yoga teaching, or Mobius Motors, who build specific affordable vehicles designed for bumpy African roads.

As Alfons Cornella mentions it in his book Ideas x Valor = Resultados, “to hybridize means to create new products or services from the combination of already existing ones and to apply it to process and people, to the input, development or output of the product.”

Fablab InnovationWe are convinced that the future is all about getting the right mix: mixing money and mobile as with Mpesa, mixing engineers and makers as in Fablab, mixing guerrilla techniques with traditional video shooting as with What took you so long? This last group is using informal and flexible methods of filming to fit the context, traveling by public transport, immersing themselves in the local reality to shoot videos that have the potential to change the world.

This concept of mixing also supposes the involvement of different people in a process of co-creation, of crowdsourcing the collective intelligence to solve today’s challenges together.

As Rachel Botsman once predicted, the best innovative examples will come from collaborative approaches, whether they be in the consumption patterns, or as open innovation sourcing ideas to solve corporations’ challenges through the power of the crowd. We can all challenge our traditional environments through a simple question: “Why not?” And we can use everyday ingenuity to solve problems, big and small.

It is also a question of breaking up the silos between grassroots entrepreneurs and corporations with resources, being the middleman between the underworld of ideas and the upperground of corporations, connecting the solid and established with the moving, volatile, and emerging in order to create wealth. We connect knowledge, experience, and resources with audacious individuals with crazy vision and passion. We wish to mix the inertia and sometimes brakes of more established organizations with emerging companies with little brake but little acceleration or scale up capacity.

For us, multidisciplinary is synonymous with richness. That is why we try to incorporate so many different kinds of organizations in our tours: not only tech start-ups but also political activists or university incubators as ILAB of Strath university. This mix creates the diversity that gives rise to great ideas.

We also think that contagion is key: when you are surrounded by entrepreneurs, innovators, dynamic and curious individuals, energy is contagious. Whether you’re an executive on the path to becoming an entrepreneur, or a student deciding on a career, you should be surrounded by inspiring examples of innovation!

 Innovation also comes from mixing profiles within the team or the participants: with the proper structure, a retired entrepreneur from Holland can learn from a design student in Kampala and the challenge is to know how to curate this mix, how to balance it and to make it work. When everybody is talking targeting, making it specific, at The A Factor, we are fostering horizontal innovation and peer-to-peer learning.

Yet, that structured serendipity is not easy to reach. And without proper planning, it can easily be messy. There are lots of risks, like bringing in too early-stage investors who might be frustrated by the complexity of the market, or not getting the right fit between participants and local projects.

We believe that the key to adapt in our current ultra-competitive and constantly changing world is to find the right balance between the security and the risk, between business as usual and exploring new ideas, between being efficient and being different.

So when confirmed entrepreneurs in a post-validation phase like M-spark or investors are wishing to discover a new ecosystem, we search within our different networks to identify the most suitable matches for them. However, we don’t limit our program there because we know that innovation also comes from surprise: from a circus show or a visit to a mobile clinic that is not directly related to the sector or the needs of the participants, but that can challenge the group’s views Misfits innovationand spark its creativity.

The key to our Innovation Tours is its element of surprise. We show our participants what we can learn from misfits, exploring the “dark side” of innovation, learn from those working under extreme constraints when traditional approaches fail.

Yet, this reverse innovation and cross fertilization we are hoping for is not always predictable. In some cases, the communication does not work and the competitive intelligence the participants or local partners are looking for is not exactly what they were expecting.

Even for ourselves, It is all about effectuation, and our own internal process is built from who we are, who we know, and what we want to do from it. We interact with others, look for commitments from other stakeholders, and try to measure our affordable loss, in case it all fails…

effectuation innovation

What is sure is that innovation is no longer confined to R&D departments of companies. Innovation has to be at the core of the whole organization, absorbed by each individual or employee to generate a real culture of idea generation. But this challenges deeply rooted cultural structures, the risk aversion, the fear of the unknown, the craving for stability and predictability.

So how to we break down these structures? We challenge our participant to get out of their comfort zones, to sing in front of the others, to listen to people from other ages and backgrounds, to spend a day in the slums working with a local entrepreneur, and to learn from themselves as well as from the others.

And to know how to scout, explore and hybridize is really the key to success.