As the calendar resets, the advent of a new year brings a cascade of changes, not just in resolutions but also in consumer behaviours. The turn of the year often heralds shifts in consumer preferences, spending habits, and decision-making processes.

Yet, understanding these changes isn’t a straightforward task. Consumer tastes and preferences are a tapestry woven from myriad influences—a complex interplay of societal trends, economic fluctuations, personal experiences, and evolving market dynamics.

Models like the Behavior Motivation Ability Prompt (BMAP) endeavour to unravel this intricate maze and help businesses navigate this challenging landscape.

While the model does not promise a magic bullet for deciphering consumer behaviour, it offers an understanding of their motivations for designing behaviour. At its core, the BMAP model not only helps us understand the ‘what’ but also the ‘why of consumer behaviour.

It states that for behavioral change to occur, three elements; motivation, ability, and prompt, must occur instantaneously. Your consumers must badly want to perform the desired behaviour (motivation), the behaviour must be easy to perform (Ability), and a timely cue should be provided to remind them to perform the behaviour (prompt).

If one of these elements is missing, behavioural change cannot occur. The higher the motivation, the more likely a person will complete an action. So how does one achieve this?

To increase motivation, businesses have to address consumers’ sensations, anticipation, and sense of belonging. Sensation drives us to pursue pleasure while avoiding pain.

To tackle this, a business can apply the behavioural science principle of loss aversion to better position their propositions. Human beings are much more sensitive to losses than gains.

A behaviour change can be elicited by highlighting the possible losses one may encounter should one choose not to take your offer.

Donald Trump’s 2016 Campaign ‘Make America Great Again’ was successful as it applied loss aversion by implying America was in the dumps and Trump was the best bet to make it great again. Anticipation looks at hope and fear as drivers of behaviour. Individuals can have hope and pursue positive outcomes or be afraid and avoid negative outcomes. Increasing the capabilities of your consumers by empowering them through education can help alleviate any fears they may have while pursuing a desired behaviour.

Humans are social beings and subconsciously, we seek security in numbers. We have a desire to have a sense of belonging and avoid all forms of rejection. To achieve this, businesses can consider tapping into principles that elicit belonging cues such as social proofing and reciprocity to influence their behaviour through group cushioning and implicitly tell them what to do.

Have you stayed at a hotel that asks you to reuse towels like 85% of its guests who have done so before? You probably felt compelled to follow suit—that’s the power of social proof in action.

To improve ability, consider decreasing friction towards the new behaviour by making the desired task as easy as possible. This will bear much more fruit than teaching your audience how to behave. After all, no one wants to be told what to do! Ensure the task takes little to no time to complete.

A simple condensation of 6 steps into 2 does the trick. Making a process easy is not enough; you have to make it feel easy. The perceived effort your customers have towards doing a task should be simple and feel easy. Apps such as Nike Training use time as a proxy to help gauge how easy a workout might be. 25 minutes of exercise seems harder than 2 minutes.

Ensure the task does not make them feel like they are deviating from their social group, where they face rejection. The task should also be adaptable to their daily routine, as anything requiring a new routine is less likely to be done.

Your prompts should happen when consumers are most receptive, i.e. their motivations are highest, or their friction is low. Air BnB and Booking.com apply this by selling additional travel products once you book your accommodation when your motivation is high, making you more receptive.

The time of the day and language used also matter. Weather APIs can be used to prompt consumers to buy a cold refreshing drink on a sunny afternoon rather than a cup of hot coffee.

The prompts should capture attention and be associated with the targeted behaviour to create better chances for the desired action to be taken.

The strategic application of BMAP provides a competitive edge, aligning offerings with evolving consumer desires, enhancing satisfaction, fostering loyalty, and driving business growth.

The writer is a Group Account Director at Ogilvy Africa, the largest marketing & communications agency network. A digital specialist, psychologist and a behavioral science enthusiast, she has worked on brands all over Africa, Asia, the USA, and the UK. 

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In her acceptance speech for the Nobel Prize in Literature 30 years ago, the author Toni Morrison summarized the purpose of language thus:

The vitality of language lies in its ability to limn [describe] the actual, imagined and possible lives of its speakers, readers, writers.

If language cannot accurately describe people’s lived reality, or worse if it misdescribes it, then language becomes a tool of reality distortion, which inevitably spawns a new reality.

In Kenya corruption permeates many facets of the public discourse, be it in the media or in day-to-day chit chat at the metaphorical watercooler.

But for a people that discuss corruption as much as we do, the language in which we discuss corruption remains largely under examined. This examination is necessary, for it’s not possible to solve that which you cannot accurately name, and so we must correct the myriad ways we mischaracterize corruption.

One such way is that the language of corruption is colored by metaphors. If a public officer tells you “nunua chai”, “buy me some tea”, you know what they are asking for: a bribe.

This term draws its verve from our collective cultural agreement on what it means for one to buy another tea.  Tea is not just a social beverage, but a communal one.

“Buying tea” is a minor but crucial act of generosity one does for friends. While the semantic framing might appear benign in and of itself, it serves an important purpose in perpetuating and normalizing corruption, for it unclasps the act of taking a bribe from the sphere of moral rot to being a social good at best, at worst morally neutral.

In recent times, the “nunua chai” has morphed into “za macho”, “for the eyes”, a phrase often used playfully and whose etymology no one seems to know but which is widely understood to mean anything from a tip to a kickback, which is trivialized and completely divorced of shame.

While we use these metaphors in the micro interpersonal corruption, when describing corruption in the grand or national scale we go in the opposite direction, where the language is unnecessarily unusual and complex.

At a recent meeting, someone made a poignant point that in our day-to-day language, and in our moral dictionary (including in religious texts), words such as embezzlement and grand graft simply do not exist.

In the African culture, taking something that does not belong to you is simply theft, universally understood as immoral. It is therefore curious that media corruption reportage is shrouded in language that is inaccessible to the common citizen.

In the cases where the language is simple and clear, it is unfortunately often disempowered and passive. This is where we anthropomorphize corruption and accord it autonomy that is beyond the control of people who commit it.

The oft used, “money was stolen”, or even more amusing if it wasn’t so tragic “money disappeared from the coffers”, denies existence of human action as we know it, as if the money acquired legs.

This anthropomorphizing tacitly accepts defeat, that nothing could have been done. It also takes many forms: sometimes the money disappears by itself, and sometimes it becomes powerful beyond our ability to manage it, becoming “a cancer”.

In certain cases, we have so normalized certain acts of corruption that we, in fact, do not have language to describe them.

In my African language, Gikuyu, there is no word for nepotism, at least none that I am aware of. Nepotism is not only not understood as corruption, but it is also generally expected that those in a position to extend favors, however unwarranted, to their families and friends have a duty to do so.

Arguably the greatest gap in our conversations about corruption, and as would be apparent in all the examples above, is how we obfuscate the effect of the corrupt acts.

Beyond re-orienting itself to apportion blame where it’s due, the language we use must also do a better job of linking cause and effect. Even in the cases where the media gets it right in highlighting corrupt actors, there is generally less to no focus on the effects of said corruption, which inevitably has a de-sensitizing effect.

To appropriately deploy language in the fight against corruption, we must link rampant corruption to its victims. The effects are all around us, such as the widespread use of private solutions to public problems for the upper and middle class and the alienation of the poor from the basic means to live.

It is critical to underscore the role of the media in leading this charge, and particularly traditional corporate media, who generally have the muscle and reach needed to radically transform how we discuss the problem of corruption.

In the PwC Global Economic Crime Survey (GECs) Webinar launch held recently, one of our audience members asked a most profound question: Given how aspirational illicit wealth has become in our society, is fighting corruption after all a losing battle?

The panel of experts on the webinar argued that we must fight corruption to win, and proffered many ideas on some of the ways we can ramp up our efforts as a society.

Thematically, these responses all revolved around one centerpiece: changing the culture. And what is a culture without language?

Prof Ngugi wa Thiong’o, Kenya’s towering intellectual of language, in his book Decolonising the Mind aptly said: “language, any language, has a dual character: it is both a means of communication and a carrier of culture.”

To move the needle, we must learn from the Greeks, to call a fig a fig and a trough a trough, or as we have come to know it, a spade a spade.

The author is Manager, Advisory Services at PwC Kenya

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Marian Wright Edelman said, “In trying to make a big difference, don’t ignore the small daily differences we can make.” Small but targeted differences have the potential to make a great impact. According to Good Finance, social impact is the effect on people and communities that happens as a result of an action or inaction, an activity, project, programme or policy.

Social impact startups operate uniquely, aiming to drive positive change in society and the environment, prioritising more than just financial returns for investors. This article delves into the distinctive context and funding considerations for social impact startups.

In the realm of social impact startups, key questions often revolve around achieving financial viability while maintaining sustainability. These ventures are unique because they seek to make a difference in society and the environment at large through their products and services. Startups must strike a delicate balance between fulfilling their purpose and attracting compatible investors. The fundraising process requires a meticulous analysis of potential investors who align with the venture’s broader societal or environmental goals, rather than solely seeking financial returns.

Quantifying impact is another crucial facet for social impact startups. This involves measuring the number of beneficiaries, positive changes instigated, and the venture’s overall sustainability. Typically, this necessitates scaling operations. In addition to a compelling idea, the founders’ skills and unwavering focus play pivotal roles in persuading investors to support these startups.

Given the diverse landscape, how should social impact startups position themselves to secure funding? The approach may hinge on the priorities of funding organizations dedicated to various impact initiatives, encompassing grants, equity, (convertible) debt, or a combination thereof.

Exploring grants constitutes a common starting point, especially for emerging startups. For social impact startups, a grant serves as a financial award to facilitate specific goals outlined in the grant’s terms. Alignment with the ethos of the grantor organization is paramount, necessitating thorough preparation to demonstrate eligibility and compatibility with the cause.

Many social impact investors are grappling with the question of how they can make a positive change to society. Engaging impact investors is another avenue, as many are actively seeking opportunities to effect positive change in society. According to the Global Impact Investing Network, impact investments are investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return.  Financial investments are different from grants because investors would usually require a financial return over a period of time, unlike a grant which may be non-redeemable. These investments are therefore assessed with a lens of financial returns over and above the social impact, but not necessarily at higher priority. Increasingly, investors are demanding a demonstration of financial returns for impact ventures to demonstrate sustainability.

Crowdfunding emerges as a dynamic fundraising method, pooling resources from a broad base of contributors, each making relatively modest contributions. This can be achieved by having either individuals, institutions or a mix of both, coming together to fund a social impact startup(s). Recently, crowdfunding through the internet has gained significant traction.

Crowdfunding has the ability to raise significant capital from a diverse pool of sources, while cementing the social element of the venture through increasing the society’s buy in. Depending on the initiative and its success, this could either catapult or deter stakeholders from participating in a similar venture in future.

Typically, startups do not have the benefit of having a credit history, making obtaining a traditional loan difficult. Considering convertible debt is an option for startups lacking an established credit history. This instrument enables swift capital acquisition, with the understanding that the debt may eventually convert to an equity stake. While less costly than equity funding, it carries the potential risk of founders relinquishing control.

While the essence of social impact revolves around making a difference, social impact startups face the challenge of transitioning from great ideas to the stage where they materialize the positive change they aim to bring about while also ensuring sustainability. Additionally, when it comes to funding, there are particular financial terms to the lending or equity funding into the venture. The achievement of these terms could take away from the priorities and the focus of the social impact startup, making it less “impactful”.

Social impact startups must prioritise ensuring that their value proposition is foolproof. Additionally, their founders and management should be equipped with the necessary skills to effectively present their case for funding, allowing them to scale to their envisioned heights and deliver their intended impact. Strategy serves as the key instrument that enables success, and this principle applies equally to social impact startups.

The author is a Senior Associate, Tax – Legal Business Solutions at PwC Kenya

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In this fast-paced digital age, our smartphones have become indispensable tools, connecting us with the world, enhancing our productivity, and keeping us entertained. Among the many features that make our Nokia smartphones reliable and secure, regular software updates are crucial to maintaining a smooth and secure mobile experience. Carrying out regular updates as prompted on your Nokia phone is essential because of the following:

Security Reinforcement: Shielding Your Digital World

In a world where cyber threats are constantly evolving, keeping your Nokia phone’s software up to date is your first line of defence. Each software update typically includes security patches that address vulnerabilities that may have been discovered since the previous update. By promptly installing these updates, you’re protecting your device from potential security breaches, ensuring that your personal data remains safe.

Improved Performance: Keeping Your Phone Running Smoothly

Software updates often bring performance enhancements. They include bug fixes and optimizations that can significantly improve your Nokia phone’s speed and responsiveness. Over time, without regular updates, your phone may start to experience slowdowns and glitches. These updates ensure that your device continues to operate at its best.

Enhanced Features and Functionality: What’s New?

Nokia is known for providing a user-friendly and reliable mobile experience. By keeping your software up to date, you not only maintain the existing features but also gain access to exciting new ones. Software updates often introduce fresh functionalities, user interface improvements, and innovations that enhance your overall smartphone experience.

Compatibility and App Support: Staying Current

As app developers create new features and improve existing ones, they may require the latest software versions to function correctly. By updating your Nokia phone regularly, you ensure that your device remains compatible with the latest apps and services. This ensures you won’t miss out on any exciting new app releases or updates.

Battery Life Optimization: Efficiency Matters

Battery life is a precious commodity in our smartphone-dependent lives. Software updates often include optimizations that can extend your Nokia phone’s battery life. By keeping your software current, you can enjoy longer usage between charges.

Bug Fixes: Smoother User Experience

No software is perfect, and bugs can emerge over time. Regular updates tackle these issues head-on, resolving known problems and glitches. This means fewer disruptions to your daily activities and a smoother overall user experience.

Peace of Mind: Enjoy Your Device to the Fullest

In the end, regular software updates provide peace of mind. Knowing that your phone is up to date and protected against security threats allows you to use your device with confidence. You can focus on the things that matter most to you without worrying about potential issues or vulnerabilities.

Conclusion: Stay Current, Stay Secure

In the ever-evolving world of technology, staying current is key to enjoying the full potential of your Nokia smartphone. Monthly software updates may seem routine, but they play a critical role in ensuring your device remains secure, efficient, and equipped with the latest features.

So, the next time you receive that notification prompting you to update your Nokia phone’s software, remember that it’s not an inconvenience but a step towards a safer, smoother, and more enjoyable mobile experience. Embrace the monthly ritual, and reap the benefits of a phone that’s always up to the task. Your digital world will thank you for it.

The author is the HMD Global Marketing Manager East Africa

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The manufacturing sector’s contribution to Kenya’s GDP tumbled from 9.3 per cent to 7.2 per cent in the five-year period between 2016-2021, according to the Kenya National Bureau of Statistics.

This is way below the 20 per cent target the sector is aiming to achieve by 2030. We therefore urgently need to re-think our industrial model and adopt strategies that will make the sector the engine of the country’s transformation into a middle-income economy.

Making Kenya a serious industrial hub requires strategic thinking. Even as we push the government to address concerns raised by manufacturers, notably, reduced cost of power, tax incentives for investment, and a predictable regulatory environment, we must quickly explore ways of enhancing Kenya’s industrial output and efficiency.

Fortunately, a lot is happening globally and I have in mind three mega-trends that are changing the world of industrial operations, which if applied locally, would significantly increase the manufacturing share of GDP but also help the sector recover into a trajectory of sustainable growth.

The first is the optimization of industrial processes using innovative technologies like Artificial Intelligence to create ‘intelligent factories’ of the future.

Here, we are talking of not just the automation of industries but also the use of innovative technologies like data analytics to achieve higher levels of throughput and yield while reducing costs.

Companies in other countries are experimenting with AI to improve product quality through automated inspection processes and mitigate supply chain disruptions by programming machines to ‘learn’ advanced production planning and scheduling techniques.

As a sector, we cannot escape the disruptive impact of technology. The question is, how do we harness innovative tools like AI to stimulate manufacturing growth and productivity?

Where does the government come in to support such industry-led initiatives? Investing in new advanced technology is, of course, not cheap but developing nations like Kenya that harbour industrial dreams must be willing to make the technological leap of faith.

A key reason why the so-called Asian Tigers – Hong Kong, Singapore, Korea and Taiwan – were able to develop into industrial giants was because of their willingness to embrace advanced technologies despite being relatively poor economies at the time they made this important decision.

We must start integrating Industry 4.0 digital transformation into local manufacturing operations to achieve new levels of efficiency to counter the high cost of production.

The second mega-trend is re-skilling and upskilling the local industrial workforce with new technology and knowledge capabilities for the fast-changing global industrial workplace.

To work with new technology, workers need digital among other skills as a basic labour parameter. We also need to invest heavily in Science, Technology, Engineering and Mathematics (STEM) in our schools and in addition, equip our learners with ‘soft skills’ like emotional intelligence, critical thinking, communication, creative thinking and leadership, that prepare them for a competitive industrial environment.

Industry can partner with universities and technical training institutions (TVETs) to nurture innovative workers for the new Industrial Age.

The third mega-trend is building a sustainable manufacturing value chain that is capable of withstanding short and long-term shocks.

The aftershocks of the global pandemic and the war in Ukraine have forced manufacturers to focus more on strengthening supply chain resilience.

Hence the need for the local industry to plan better for unpredictable events including climate-change-related disruptions as a short and long-term growth strategy. The use of predictive tools such as AI should be an integral part of this re-alignment process.

Also, manufacturers are under pressure to meet higher consumer demands and deliver products at a price that meets their expectations.

This means going beyond just producing quality products to focusing more on how such products add value to the customer’s aspirations and daily life experiences.

Investing in ecologically-friendly production processes not only minimizes negative impacts on the Planet but also makes products more attractive to the growing population of environmentally-conscious consumers.

This is one way of producing goods that are more competitive for both the local and global markets.

However, for the above industry-driven strategies to succeed and achieve the 20 per cent manufacturing share of GDP within seven years, the government must create the right environment.

It is simply not possible to realize enhanced industrial productivity and growth without State support. The Asian Tigers are the industrial giants they are today because their governments deliberately supported industrial innovation via “true industrial policies” backed by heavy investment in infrastructure and education.

In short, achieving double-digit growth and performance in the manufacturing sector requires government and industry to come together and pursue a common objective.

Mr. Malde is Commercial Director, Pwani Oil Products Limited.

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There are two Latin phrases used in law that seek to distinguish between what is wrong because it is, and what is wrong because the law has said it is. ‘Mala in se’ means an act is inherently wrong e.g., rape or murder. ‘Mala prohibita’, on the other hand means that an act is wrong because a group, e.g., a state, has prohibited it despite it not being necessarily inherently ‘evil’ e.g., photography in a prohibited area.

It is easy for the society to be outraged en masse by those acts that are mala in se. That is why a mob will quickly form and lynch someone that snatches a bag. The action of the mob is often impulsive in such cases and the punishment is swift. The perpetrator is also very clear that what they are doing is wrong and that is why they flee immediately they snatch the bag.

It is consequently relatively easy to organize a society against many of the crimes that relate to acts that ‘everyone’ considers wrong and evil. It is thus possible to have ‘organized resentment’.

Surprisingly though, this does not appear to be the case for many white collar or economic crimes including corruption and fraud.

Chapter six of the Kenyan constitution seeks to establish integrity in the leadership of the country by setting minimum standards and expectations. Various Acts of parliament outlaw offences such a bribery and corruption, money laundering and tax evasion. The Mwongozo code, MKenyaDaima Code of Conduct and many corporate policies emphasize integrity and declare zero tolerance to fraud. Despite all these laws and policies, corruption and fraud in both the public and private sectors seem to continue unabated.

Maybe even more concerning, is the fact that a majority of Kenyans do not seem to be sufficiently outraged by reported corruption or fraud. I say this because our decisions about who we vote for, who is appointed to what position, whose money we accept or what company we choose to work for or do business with is seldom informed by reported integrity concerns relating to such individuals or businesses.

Is it a case of us as a society considering corruption and fraud as only mala prohibita? Acts which are only bad because there is a law somewhere that says so but which we otherwise consider as not inherently repulsive or damaging? As acts that are okay so long as you don’t get caught? Acts we can excuse so long as one can avoid conviction by a court? As victimless crimes?

Given our attitude towards economic crimes, the answer to some of the above questions must be yes. At least to an extent. As such, it is important to ask why it is the case that we perceive corruption, fraud and other economic crimes so leniently.

One of the reasons is that economic crime is not easy to understand. It is very easy to understand what chicken theft is and therefore get angry with the chicken thief. On the other hand, there is likely only a handful of Kenyans that understand what the Goldenberg or Anglo-Leasing scandals entailed. Despite the commissions of inquiry, court cases and numerous investigations, very few Kenyans will tell you who did what in any of the major scandals, how what they did was wrong and what the consequences were. That it takes years for such cases to be successfully prosecuted does not help matters. As such, the average citizen wouldn’t know why they should be outraged and where to point their outrage.

A second albeit related point is that despite the pervasiveness of economic crime, few people appreciate the extent of the harm such crimes cause, especially when each crime or institution is looked at independently. This ignorance is both intentional and unintended. This is partly the case because many perpetrators, beneficiaries and in some cases even the victims of economic crime are people in authority, and it is not in their interest for the full extent of the problem to be established and/or broadcasted.

The result of the above is that there is very little investment in investigating fraud and in researching its impacts and costs. Because its impacts are not well researched, they are underreported and the true impact of fraud and corruption is not immediately apparent. This in turn means there isn’t enough investment made in investigations or in creating awareness about the effects of economic crime.

To effectively fight corruption, we need to be sufficiently outraged by it. With outrage, we may be able to create the organized resentment required to not only punish fraud and corruption where it happens, but more importantly, that will make it harder for those with the opportunity to commit fraud or corruption to rationalize and justify it.

The writer is an Associate Director, Forensics Advisory services, PwC East Africa region.

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A population of ~1.3 billion people, expected to double by 2050. A young median age of 20 in a world where several economies are grappling with ageing populations. These and many more such truths have been spoken about Africa, making it the logical next frontier for business growth.

Two decades ago, it wasn’t uncommon for Asia, South America and Africa to be spoken of in the same breath as the growth engines of the world.

So why is it that after nearly two decades of being the next big thing, for most global businesses Africa still remains just that—the next big thing? Why is it that only a handful of global companies have succeeded in building a strong presence on the continent? What makes the promise of Africa a bit of an enigma where the potential continues to outweigh the reality?

In the past two years of living on the continent, I’ve witnessed several conversations in global companies that roughly amount to, “So, what’s our Africa strategy?”

For several companies, knowledge (and perceptions) of Africa are shaped by what they know about a small set of countries, like Egypt, South Africa, Nigeria and Kenya. In reality, Africa is much more complex. After all, the continent has 20.3% of the world’s land mass and is home to 17% of the world’s people.

If Africa itself is complex, then understanding Africa is complex too.

First, there’s the numerical complexity. At 54, there are more countries in Africa than any other continent on the planet. Culturally, these countries aren’t homogeneous either. For example, some of the northern countries might be culturally closer to the Middle East than they are to countries in others parts of Africa. In the Sub-Saharan region, the East, Central, West and Southern African regions each have their own distinctive cultures.

The continent has peaceful countries and ones dealing with massive conflicts and political instability. We have a francophone Africa that is different from the Anglophone Africa, which in turn works very differently from Portuguese-speaking Africa. The cuisine changes every few hundred kilometres, as does the language and the belief systems held by people.

Simply put, Africa is too complex to have an “Africa strategy”. It requires a global company to invest efforts and money over several years (sometimes decades), to get under the skin of this complexity and create a real, successful business across the continent.

Herein lies the challenge of scale, or the lack of it.

Africa accounts for <3% of the world’s GDP (5% at PPP), and has the lowest per capita GDP of all continents (excluding Antarctica). To put it in context, if Africa were a country, its combined GDP would still fall outside the top 5 in the world; it would be ranked below countries like Japan and Germany, which own a tiny fraction of Africa’s land, natural resources, or population.

If you purely look at Africa from the scale of its potential, it’s exciting. But if you zoom in and try to understand the continent intimately, the complexity can be intimidating.

This is what we call the Scale-Complexity Paradox.

In Africa, a business has to deal with a degree of complexity that’s disproportionately larger than the size-of-prize. While this understanding comes naturally to companies that are native to Africa, their global competitors find it a lot harder.

Most end up entering Africa with great fanfare, but then get intimidated by the sheer complexity of the continent. This results in a realization of the lack of scale, and a re-prioritization of investments towards other parts of the world where the size-of-prize is similar, but the returns-on-effort are higher, or faster. It’s the (very) abridged common story of several global FMCG giants, banks, and automobile companies’ Africa journey.

Thankfully, there are notable exceptions as well. In the book ‘Africa’s Business Revolution: How to Succeed in the World’s Next Big Growth Market,’ published by Havard Business Review Press,  the authors explain two fundamental requirements for companies to succeed in Africa: the imagination to see the continent’s unmet needs as opportunities for growth, and the long-term commitment to building businesses of meaningful scale.

There are a few global companies that have understood this paradox and succeeded on the continent. Sectors that have done this well include beverages and telecom. From studying these successful approaches and having had the opportunity to work with some of these brands, we’ve identified five crucial learnings about companies that have succeeded in scaling amidst Africa’s complexity.

1. They respect the complexity, without being overwhelmed. They acknowledge there isn’t one formula that’s going to work in all of Africa. They often give each market a significant degree of autonomy, whilst following certain common principles.
2. They find the right mix of global and local talent in their teams to bring together global thinking and local nuance.
3. They understand that bringing global brands to Africa is not enough. You have to make-for-Africa. This could mean complementing global brands with highly localized products and go-to-market mixes. Acquisitions of local companies/ brands often feature in their strategy as a result.
4. They treat each country with the respect it deserves. It’s often tempting for a global company to look for learnings they can search-and-reapply. While learnings are valuable, they almost never work if not complemented with deep local insight. Just because it works in one Congo (DRC) does not guarantee it will work in the other (Congo B)
5. Most of all, they are in Africa for the long haul. When the scale is small and complexity immense, it takes time for a business to grow and succeed.

The continent needs—and tests—your patience as a business before you get success. But when you really commit to Africa; success is a question of when not if.

 The author is the CEO, of Ogilvy Africa, the continent’s largest marketing and communications agency network. A developing and emerging (D&E) market specialist; he’s lived in four countries and worked in over fifty, across Asia-Pacific and Africa. Views expressed here are personal.

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Hosted as a partnership between the Government of Rwanda and Commonwealth Enterprise and Investment Council (CWEIC) this year’s forum will address the CHOGM theme ‘Delivering a Common Future: Connecting, Innovating, transforming’, with a focus on “A Global Reset”, dealing with the impact of the pandemic and the Commonwealth’s role in rebuilding and reinvigorating the global economy.

Dr Mwangi added that since the pandemic, “globalization, competitiveness, economies of scale; the theories upon which the world was being built have been put to question because, at the end of the day, it was all about availability.

Dr Mwangi says the pandemic has brought the world back to a moment for a global reset that puts in place a new vision and inclusive leadership that guarantees a future of shared prosperity, equal opportunities, and equality in society.

At least 40 Heads of State and government from Africa, Europe, Asia, the Americas, the Caribbean and the Pacific will convene to discuss this year’s theme: “Delivering a Common Future: Connecting, Innovating, Transforming.

The economic shock of COVID-19 in 2020 pushed the global economy into a sharp downturn and exposed systemic fragilities. The Commonwealth is uniquely positioned as a worldwide alliance with inherent benefits including economic, political and cultural links, and can lead the way in demonstrating what a truly global recovery can look like.

This session will discuss challenges including downturns in employment, disruptions to healthcare services, school closures, trade, and supply chain disruptions. It will compare recovery strategies and experiences and contribute to a unified approach to recovery.

This is the first and largest in-person gathering for Governments and Businesses across the Commonwealth since the start of the Covid-19 pandemic. The CBF 2022 experience has been designed to provide different ways to create meaningful connections, exchange knowledge, contribute to impactful dialogue and consume information.

The Commonwealth conference began officially on Monday, 20^th June 2022 and will run till Friday 24^th June 2022.

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The banking sector globally has undergone significant changes in the last decade. The global economic crisis resulted in major regulatory reforms affecting the industry, but other trends including step changes in technological advancement, new sources of competition and changing customer needs have had a profound impact in shaping the sector.

COVID-19 is likely to have an even more substantial impact on the global economy overall, with transformative reverberations in the financial services sector yet to come.

In East Africa, these and other trends are accelerating. Their trajectory helps to indicate what we can expect from the financial services industry over the next 10 years.

Big tech and digital banking

For many industries, COVID-19 has proven to be a catalyst accelerating the shift from ‘brick and mortar’ to technology-enabled, remote service delivery. The focus now is on productivity, which requires ongoing investment in technology and the workforce.

Organizations that had made investments in their technology infrastructure and developed digital channels and capabilities prior to the pandemic have fared much better and are now more competitive and agile as a result.

Leading institutions will continue to digitize their customer-interaction models, shift to cloud-based, modern architecture and strengthen digital sales, operations and service models. Focusing on these priorities will put even more pressure on any remaining legacy infrastructure, support functions and branch infrastructure.

In East Africa, digitization and innovation were already widely embraced by financial services organizations The pandemic accelerated this shift, but many customers already expected cashless transactions and remote access to services.

Bigtech and Fintech have emerged either as standalone players or providing complementary services, such as remittance, payments, and digital lending.

In many cases, banks and technology companies have partnered to create mutually beneficial technology solutions that often supplement the customer experience. Going forward, I foresee even greater collaboration between banks and third parties to drive innovation – and more scrutiny by the regulator.

Consequently, East Africa’s financial services industry is in no danger of being taken over by technology companies. Banks have earned their reputations as trusted advisors, and banking remains a critical facilitator of local and global economies and commerce.

Shifting customer trends

In some ways, the expectations that customers had a decade ago are very different from today. The current client-driven shift to digital platforms and service delivery models is likely to inspire successive waves of disruption for financial services.

And yet trust remains the underlying factor; with a wider and evolving set of products and services to choose from, banking clients will place an even higher premium on trust in choosing a service provider. They also value speed and affordability.

With a youthful, rapidly urbanizing and increasingly educated population, Africa’s banking customers have certain expectations around efficiency and accessibility. They expect to open accounts, apply for loans, transact, and access different services on their smartphones.

East Africa, and Kenya in particular, has made headline progress over many years in implementing mobile money. That trend has accelerated elsewhere in Africa and globally during the pandemic.

Electronic payment platforms linked to digital currencies have only just begun to gain acceptance at an institutional level in some countries, but it is possible that we are on the cusp of major global disruption.

A bank that does not respond to these and other customer-driven and customer-centric trends will soon become irrelevant.

Increased regulation

There are very good reasons for the banking industry’s regulatory framework, which governs services as well as operations. Banks of the future can anticipate an acceleration in the implementation of current and planned regulatory measures.

We can anticipate changes in the regulatory regime based on international considerations like sanctions, anti-money laundering and know-your-customer imperatives as well as LIBOR replacement/reference rate reform, amongst others.

The implementation of the latest Basel conventions in measuring capital and risk, tighter liquidity requirements and stress testing may challenge traditional business models and institutions.

None of these developments is unheard-of; what is uncertain is the timing and the method and sequence of implementation.

Digital disruption poses an interesting challenge for regulators in East Africa, who must strike a balance between protecting financial system stability and the security of consumers, with supporting an innovative ecosystem. The extent to which that balance is maintained – or not – can create another layer of uncertainty.

Mergers and acquisition

It is not a new observation that the banking sector in East Africa is overcrowded with too many players, particularly small players that struggle with margins, liquidity, meeting capital requirements or attracting deposits at a reasonable cost.

As the economies in the East Africa region become more integrated, we are likely to see the emergence and growth of more regional banks.

We have witnessed several mergers and acquisitions in recent years, and that trend is likely to continue. Consolidation will be driven by business imperatives, not just regulatory action.

Scale remains a key consideration for banks; the larger ones will look to scale through organic growth or acquisitions. Some small banks may struggle to make the investments in innovation, technology, and compliance processes that are required to remain competitive.

Blockchain technology, cryptocurrency, and digital currency

Blockchain is a system of recording transactions in distributed ledgers and is the technology that supports cryptocurrencies. Regulators are wary of the use of cryptocurrency as it is unregulated and can be used for money laundering and terrorism financing.

In Kenya, the CBK has cautioned the public against using cryptocurrency and reiterated that it is not legal tender.
Some regulators are piloting official, central bank digital currencies (CBDC). CBDC is legal tender in electronic form backed by the issuing authority. Unlike cryptocurrencies, CBDC is not based on blockchain technology but is issued by a specific authority.

Nigeria became the first country in Africa to launch CBDC officially. The Central Bank of Kenya has recently issued a discussion paper on CBDC, seeking views on potential use of CBDC I Kenya. It is possible that in years to come central bank digital currencies will be used alongside existing currencies in East Africa.

Conclusion

Some commentators have questioned the future of banks, in the face of emerging competition from non-bank players and evolving customer needs. I am convinced that banks have a future, and they are here to stay. Banks do have some significant challenges, however, to remain relevant.

First and foremost, they need to respond to consumer expectations and deliver technologies, innovations and experiences proactively.

The bank of the future in East Africa will be larger, more integrated and technology-enabled and make full use of Artificial Intelligence and Big Data to provide a wider range of more personalized services delivered through digital-first channels.

As the industry changes and adapts, trust will remain the foundation of financial services. The banks of the future will continuously earn that trust amongst their customers, regulators and other stakeholders by delivering value and sustained outcomes.

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The official induction of the Democratic Republic of Congo (DRC) into the East African Community is a watershed moment for regional business owners and investors as it marks the formal rollout of a platform that will stimulate business growth, cooperation and unlimited investment opportunities.

As an investor and believer in business growth, I was proud to witness the occasion when East African heads of state formally welcome the DRC into the EAC family last Friday. I was happy because the final stage of what has been a long wait to welcome a family member was completely successfully and in the right manner.

As a fast-expanding regional market with DRC as an official member, EAC now boasts of increased diversity that will no doubt supplement increasingly profound trade with external partners and stakeholders for economic and business prosperity. With the opportunities DRC brings on board, intra-regional trade will steadily rise as businesses expand and set up supply chains across the region.

DRC is a promising market for Kenyan businesses. Over the past few years, businessmen and women looking to spread their wings to DRC have had setbacks due to the economic policies in place for non-EAC members. This significantly changes with the induction of DRC into the EAC bloc.

Equity Group has been at the forefront of ensuring the integration of DRC into the EAC bloc opens the maximum possible avenues to investment and business growth. Last year, the group partnered with the DRC government to organize a trade mission to various cities across the DRC with over 200 business local business owners getting chance to visit the Central African nation. This gave them a rare chance to conduct pilot studies on the level of opportunities available in DRC and how they can maximize on the opportunities.

Kenya-DRC trade relations are also onto a new level with local companies now showing an increased willingness to explore the DRC market. Today, Equity is the Second Largest Bank in DRC and continues expanding through strategic investment and partnerships. The expansion has supplemented existing channels to access of financial services by businesses.

At this writing, more than 26 companies had made investment commitments to DRC and have made special requests to the DRC government for support in conducting feasibility studies. The companies operate in fields ranging from manufacturing, mining, hospitality, and health; all of which have great promise in the DRC.

The ongoing Covid pandemic has made it difficult for firms to burst out of their shells and grow sustainably. The effects and disruptions in global market economies have spilled over to the region constraining business growth. The snowball effect of this has installed ceilings on economic and Gross Domestic Product Growth rates for EAC member states. Earlier projections showed a would-be negative growth for most members and, while subsequent readjustments have brought about general hope, sustainable economic recovery and growth of member states is still haunted by ghosts from a future we know so little about and a past we couldn’t fully control.

Growth of the EAC for a sustainable future will require increased aggression from business owners to tap into the available opportunities in the region. The promise of intraregional trade between member states will provide a base for EAC members to compete with advanced economies in industries including Agriculture, trade, tourism/hospitality, and manufacturing.

The World Bank estimates place the growth rate of East African countries at 3.3%. This is low, even by our standards. Investments and efforts around growth of our economies will help spur improved economic rebounding from shocks such as the Covid pandemic.

In Kenya, and in many African countries, the private sector, which is largely run by young people, is a key contributor to increased employment rates and GDP. Making it easier for the sector to thrive will assure EAC member states of sustainable economic prosperity in the coming years. As KEPSA, we are working hand in hand with corporates such as KCB, eMobilis, Moringa School Equity Bank Foundation, Equity Group Foundation and the Ministries of Education and ICT to implement the Young Africa Works Initiative in Kenya to support the government’s economic priorities and the digital economy which is key to modern economic prosperity

Beyond economic sustainability through businesses owned by the youth, rising to occupy the service provision gap and making it easier for populations to uniformly access business products and services across the region is key. Businesses should now focus on deepening ties within the region and with the rest of the world.

The promise for the entire region is there and has been made even more apparent with the coming of DRC. The horde of opportunities was unlocked when DRC was formally welcomed to the EAC bloc. Businesses now have a golden opportunity to open their wings and get set out on a regional conquest mission.

Carole Kariuki is the CEO of Kenya Private Sector Alliance. This article was first published by Business Daily, on 21st April 2022.

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