Will Cooking with Solar Ovens Stop Deforestation in Uganda?

Posted on 1 January 2010 by guest

[guest name="Ronald Mutebi, Paul Munsen, Jeff Klein and Patrick Doyle" biography="Entrepreneur Ronald Mutebi is from Uganda and lives in Chicago. He has a bachelor’s degree in socio psychology from Makerere University in Uganda and is pursuing a master’s degree in computer science in the United States.

Partner/supplier Paul Munsen is president of Sun Ovens International Inc., based in Elburn, Illinois.

Expert Jeff Klein is director of the Wharton Leadership Program at The Wharton School, University of Pennsylvania, and instructs the school’s Social Enterprise Fellows.

Expert Patrick Doyle is manager of energy and climate change division for Development Alternatives Inc.
"]

America.gov asked finalists from among the more than 700 African immigrants who submitted business plans to the “African Diaspora Marketplace” to blog about their ideas. Sponsored by USAID and Western Union Company, the African Diaspora Marketplace is a contest that will award seed money to approximately 15 winners to help them bring their ideas to life in their home countries.

RONALD MUTEBI, entrepreneur:

Ronald Mutebi demos an oven.

Uganda sits on the equator in eastern Africa, more than 1100 meters above sea level. My country was once covered by lush forests and rich vegetation. However, wars and lack of good governance have resulted in deforestation. This problem has also been driven by poverty, especially in the rural areas, where trees have been cut down and sold for cooking fuel and charcoal production.

Deforestation, in turn, has caused radical change in weather patterns, especially rainfall. We see regular food shortages and famines, extended drought and flooding.

In many treeless villages, people have started to cook with grass for fuel. In other places, there is no fuel at all, so people must eat their foods raw. In still other places, people must choose either food or fuel; they live in a situation in which they can afford only one cooked meal a day. The biggest casualty in all this has been the children, who have become malnourished or undernourished.

In 2002, my business partner, Denis Wandera, and I came across an oven that uses the sun’s heat to cook. It is made by Sun Ovens International, based in Elburn, Illinois. We plan to manufacture and sell these ovens in Uganda.

Since the start, we have encountered and overcome many obstacles, ranging from high Ugandan taxes to a lack of knowledge by customers of how to use the ovens. After extensive training and demonstrations, the Ugandan government now sees the value of this oven and supports our project. (The ovens can not only bake but can also be used to boil water, which will result in better health because many water-borne diseases will be eliminated.)

My partner and I have acquired the license to manufacture the sun ovens in Uganda. We will make them readily available to everyone at an affordable price. The manufacturing process is labor intensive, so many jobs will be created.

PAUL MUNSEN, supplier/partner:

Solar ovens are desperately needed in deforested countries like Uganda. The business concept that Ronald has developed – making and marketing the ovens locally – will make the price affordable and create jobs. His purchase plan allows people to pay for the ovens in small weekly installments, using money they will save by not having to buy charcoal. It is a win-win solution for everyone concerned.

The ovens are sold at a profit. Initially, we here at Sun Ovens International are going to ship oven parts to Uganda for assembly there. Later, Ronald will develop the manufacturing capacity to make most of the oven parts in Uganda. At that point, Sun Ovens will be financially rewarded stilll, because the company will receive royalties on a special gasket that allows our ovens to get considerably hotter than other sun-fueled ovens. Each Sun Oven can cook for a family of eight people. We believe that 75 to 80 percent of Ugandan households could significantly benefit from these ovens, so the market is potentially huge. Because the country has a great deal of sunshine, our ovens will be very useful there.

Ronald has shown entrepreneurial ingenuity in making this project possible. Originally, the high government taxes on the ovens doomed the project. In most places in the world, that is still our biggest issue.

Ronald was able to convince the Ugandan government to grant a total exemption of both the import taxes and the value added taxes for the ovens. That has changed the economic viability of the project dramatically. Ronald went to the home of the then Ugandan minister of finance and worked with the minister’s maid to cook with a Sun Oven. The minister’s wife got involved with the cooking and was so impressed that she sent her driver out three times that day to put additional food in the oven. She lobbied her husband, and he arranged for the tax exemption. Ronald showed exceptional creativity in working with the minister’s maid and wife to get that accomplished.

JEFF KLEIN, business expert:

This business plan demonstrates social innovation and wealth creation at a number of key junctures. In developing economies, the consumer’s purchasing power is severely constrained – especially for larger, one-time payments. By developing a payment structure that allows buyers to channel their savings on charcoal into the purchase of a Sun Oven, Ronald enables a large segment of the population to become buyers. This marketing and pricing structure is a true “bottom-of-the-pyramid” strategy.

Local manufacturing is another impressive feature of the plan. Not only will the region benefit from the additional wealth generated through the venture (and retained in Uganda), but it will also benefit from the capacity built within the workforce to adapt the Sun Oven to local conditions and uses.

Nutrition and safe drinking water are two of the major social challenges facing the world today. By adapting an existing product for use in a new market, Ronald applies new, market-driven solutions to address these challenges. The for-profit model that he has developed creates incentives for multiple stakeholders and supports long-term sustainability.

Ultimately, the success of this project – indeed, most projects – will depend upon the network of collaborators and supporters who stand behind the launch. By generating government support at an early stage, Ronald has both eliminated an obstacle (high taxes) and enlisted an ally. The alliance with Sun Oven imports technical knowledge and business process support. It is my hope that Ronald can continue to grow this network of collaborators to include additional parties from the private, public and NGO sectors.

PATRICK DOYLE, business expert:

Solar oven.

This appears to be an excellent technology-transfer project and hopefully the exemption of taxes and tariffs for this particular oven will be applied to other ovens and renewable/efficiency products in the future.

It would be good to have some more information on the Sun Oven technology. It appears Sun Ovens are easier to manufacture locally than parabolic solar cooker technologies, for example. Local manufacturing will help avoid or reduce tariffs if the policy changes in the future. I do have some questions about the project. Has the technology been proven in other similar environments? How many units will be operating? Are there any independent reviews comparing the technology to others? Some factors to consider, in addition to cost, would be its hardiness and durability in rough conditions and ease of cleaning. How long does the stove take to boil water? The stoves can’t be used on cloudy, rainy, windy days, so being able to set it up quickly during brief periods of sunshine would be useful.

The cost and lifespan of this gasket that must be supplied by the manufacturer over the long term is critical, as I’m sure you realized.

Unless the manufacturer –- Sun Ovens International Inc. — is financing the ovens for you, it appears you will need a loan. The cost of this finance is key, as it makes the systems more costly for you and your customers. Have you worked out this issue in your business plan?

You may want to consider leveraging the carbon markets to help finance the stoves by registering your project with the United Nations Framework Convention on Climate Change as a “Clean Development Mechanism” (CDM) project or with the Voluntary Carbon Standard group. A CDM project in Indonesia using parabolic solar ovens has resulted in the reduction of more than 1000 tons of CO2e emissions. Each stove in the early stage produced about .5 tons of reduction per year. The reductions depend on how often the stoves are used and the fuel type that the solar oven is replacing.

Donor funding may be able to help get the project off the ground as well. Good luck!

Fish Farm in Nigeria Expands into Feed Production

Posted on 29 December 2009 by guest

[guest name="Francis V. Ero and Ingrid Ardjosoediro" biography="Entrepreneur Francis V. Ero is a business manager for the county of Kern in California and lives in Bakersfield. Ingrid Ardjosoediro is an agricultural economist, who works as a development specialist at Development Alternatives Inc., a consulting firm focused on development."]

FRANCIS V. ERO, entrepreneur:

Francis V. Ero

AFAS Inc. operates a 17-pond fish farm in Badagry, Nigeria, which can produce up to 375,000 kg of catfish, tilapia and other fish types, depending on demand. It takes approximately six months for juvenile fish to reach market size, about 1.0 -1.5 kg. The market for catfish and tilapia is expanding, and AFAS has an established customer base in that market niche.

Our research shows that demand will continue to outpace supply for many years to come; the long-term outlook for this industry is phenomenal.

But supply is short for clear business reasons. High costs and meager supply of quality fish feed, along with a lack of private-sector funding and a lack of government support for fish-farming, have hindered the growth of the domestic aquaculture industry.

As AFAS plans to expand production to meet demand, it must overcome the limited supply and high costs of fish feed. Fish farming is capital intensive, and feed costs represent about 70 percent of production costs. That is why our company is seeking funding from a local bank to manufacture feed at the Badagry farm. This effort will directly support more ambitious fish-production goals.

Electricity supply in Nigeria is unreliable, and our fishery is fully dependent on diesel-fueled generators to power pumps and provide electricity for the farm. Any suggestions from experts how to deal with this challenge?

INGRID ARDJOSOEDIRO, business expert:

AFAS fish farm in Badagry, Nigeria.

To answer the last question first, unfortunately, considering the lack of appropriate energy-infrastructure in most regions in Nigeria, there is no other immediate alternative to diesel-fueled generators to power machines.

The desire to expand to produce fish-feed at the AFAS Inc. facility is an important one, as the lack of local fish feed is the most common and crucial barrier to growth in aquaculture production in Africa.

It is not clear, however, how big the yearly fish production is by AFAS Inc. and what type of feed ingredients will be used. The type of fish-feed production will dictate the amount of investment needed.

Are we talking about extruded/expanded floating pellets (heat extrusion pellet feeders are more costly) or just pressed pelleted feed for ponds? Although floating feed is not a requirement for good fish production, feed ingredients that are finely ground and properly cooked will make for better fish conversion ratios.

One cautionary note: Please be wary of apparently cheap Chinese pelleting/extruding equipment. Experience shows that much of this will not produce satisfactory pellets at all. Here is a great Web site for equipment suppliers and a free on-line journal: www.aquafeed.com.

Saving Trees in Ethiopia, Selling Coffee in America

Posted on 28 December 2009 by guest

[guest name="Ambessaw Assegued, Tom Lenaghan and Thomas Carr" biography="Ambessaw Assegued is from Ethiopia and lives in San Francisco. He runs an environmental service company in California he founded five years ago. Tom Lenaghan is a program manager for the agriculture and natural resources group at Development Associates Inc., a consulting firm focused on development. Thomas Carr is the head of the Agribusiness and Trade Expansion Project, U.S. Agency for International Development, in Ethiopia."]

ABESSAW ASSEGUED, entrepreneur:

Ambessaw Assegued, on left, and Sammy Guma.

Last year, I partnered with my good friend Sammy Guma and joined his firm, Anfilo Specialty Coffee Enterprise Plc. (ASCE), in the Anfilo district of Wellega in Ethiopia.

Once, the forests of Ethiopia supported a great diversity of plants and animals. But not today. In Anfilo, I saw an intact coffee forest – rainforest with wild populations of coffee bushes – that stretches far across the mountain ranges. This sight stood in sharp contrast to the depleted mountains I usually encounter throughout Ethiopia.

In Anfilo, farmers manage small plots of coffee forest in the traditional way. They harvest coffee berries beneath the hardwood trees, but leave the forest intact. Unfortunately, these forests are threatened by timber harvesting and clearing for farming and settlements.

ASCE produces and markets a shade-grown coffee under the trade name ANFILO™. We focus on strengthening traditional coffee harvesting by bringing new capabilities in quality control, farmer training, eco-friendly processing technology, expansion of the existing plant nursery, re-forestation of cleared areas and introduction of soil conservation measures. Our plan is to expand production and export the coffee to the U.S. market.

To this venture, I bring skills acquired in running a successful habitat restoration company in California; Sammy brings extensive knowledge of the Ethiopian coffee market. I am convinced that this unique combination of skills and abilities will lead to a successful venture.

TOM LENAGHAN, business expert:

This is an interesting proposal. What we have seen in other areas where wild-type crop shade-grown coffee cultivation practices prevail is that the key to preventing deforestation is ensuring that farmers receive an attractive price for their coffee, since as soon as they lose enthusiasm for coffee growing, they usually harvest the trees and plant crops such as beans or corn that need sunlight and tilling on a regular basis—which is basically the end of any possibility of maintaining forest cover.

But shade-grown coffee, while it may be quite good in the cup if it is treated correctly, will almost inevitably have low yields from low planting densities and low input use. This means that the price received by farmers must be quite high to compensate for the low volumes and to justify the necessary investments in improved processing technology.

So I would suggest that the heart of ASCE’s approach should be on creating commercially viable systems for improving coffee quality and establishing direct sales relationships with buyers/importers—all with the aim of getting the highest price possible.

Drying coffee berries at the Anfilo company.

The challenge is that because of the peculiar dynamics of shade-grown wild-crop type coffee, volumes may be low at the level of the wet processing station (I am assuming the coffee is washed coffee with depulpers that do not require a lot of water) and substantial technical and managerial training may be required by farmers to ensure sufficient quality control, particularly if farmer groups have a role in receiving and processing cherries.

It is often hard for a private company that is buying the coffee to support the start-up costs to establish these upstream processing and quality control systems on a purely commercial basis.

What I would suggest is that ASCE investigate working with local farmers in Anfilo to look into the feasibility of using a Global Distribution Alliance (GDA) where each party is assigned roles and responsibilities in order to come up with a project and where some of the capital costs (mainly processing technology) and costs of training the farmers could be covered by a GDA match.

It would also make a lot of sense to involve a downstream importer or roaster in the U.S. or Europe in the concept. They could also be a source of training expertise or even financing, the latter perhaps in conjunction with a specialized coffee financing firm such as Root Capital if there is a firm forward sales contract with a known buyer as part of the package.

THOMAS H. CARR, business expert:

This project aims at producing coffee with some really good unique selling points. Protecting the rainforest utilizing (semi-) wild growing populations of coffee bushes, which stretch far across the mountain ranges, is definitely very appealing to roasters and consumers. On top of that, there is the impact on the livelihoods of the local farmers.

Some key questions come to mind:

1. The productivity of wild forest coffee can be as low as 200 kgs per hectare annually. They will have to focus on a broad geographical area to gain volume and a profitable economy of scale.

2. Due to cupping defects as a result of drying problems, the project must include a solid quality plan with the involvement of cupping assessments in various stages of the production process. Forest coffee won’t sell well just because it sounds eco-friendly – there will be no market if it doesn’t taste good. The coffee has the potential to score on quality at 81/82 (on the scale of 80-100 set up by the Specialty Coffee Association of America; the highest score the
better quality).

3. Linked to the previous point, the project must establish sound processing protocols. Sun-dried natural coffee should be compared to eco-friendly wet processing pulping options.

4. Community partnership cannot be over emphasized on a project such as this and several issues need to be considered:

a. There are thousands of Anfilo wild coffee farmers working in
isolated areas without any real connection to each other, or the
coffee industry. Although the forest land is owned by the local
government, citizens have the right to harvest the land and
receive income from those goods. Today, local community earns
a living by selling honey, spices, coffee and a small number of
livestock.

b. The project must demonstrate collaboration among several groups
including public and nonprofit organizations, conservation groups,
industry, academics, and local government, state, and federal
agencies to implement forest habitat restoration projects. To
proceed, the project must have formed working relationships with
these groups.

c. A “Participatory Forest Management” (PFM) initiative should be
planned from the start of the project. The recognition and
acceptance of the role of local communities in forest management
and conservation is important to the success of the project.

5. Branding is important although experts disagree over the importance of certification. The general view is that an “organic” or rainforest certification may assist in the marketing process although there are examples where “conservation coffees” are sold without such certification.

6. The main challenge for the project is the export limitations for specialty coffee under the current market structure of the Ethiopian Commodity Exchange (ECX). The ECX is, however, working on a direct specialty trade platform that the project would have to access in order to benefit from traceability. The project managers must be current on all export regulations. The marketing plan must focus on telling the story of Anfilo. A website with video segments and pictures will tell a thousand words! The assistance of a broker in the early stages is highly recommended. The managers should organize cupping sessions in San Francisco, Seattle and New York and tell the story. The coffee will be extremely popular with small- and medium-sized roasters provided that it scores at least 84 points.

Thoroughly Modern Millet

Posted on 27 December 2009 by guest

[guest name="Moussa Dia and Michael Ducker" biography="Moussa Dia, a native of Senegal, owns and runs a food import-export business, Sendiaba Food Corporation, in New York. Michael Ducker is a market development specialist employed by J.E. Austin, a business consultancy firm. Ducker has devoted a good portion of his career to helping developing economies."]

MOUSSA DIA, entrepreneur:

African millet farmer.

My idea is for my Sendiaba Corporation to open a modern processing unit for African cereals, particularly millet. The principal activities associated with the mill’s operation would be grain handling, processing, packaging, marketing, and utilization. We will produce and market several products derived from millet. I currently buy millet cereals that are produced and packaged in Africa and export them to the United States. In this new business, I aim to bring improvements to the way that millet is processed and packaged in my country of origin.

A big challenge that I am facing now is acquiring land in an industrial area to build our processing unit. I would welcome help with that.

MICHAEL DUCKER, business expert:

I believe that Moussa Dia’s proposed Sendiaba millet business can fill an important part of the grain value chain often missing in countries like Senegal. But he should consider finding specific areas where he can derive the most value. It will be difficult for him to do everything – handling, processing, packaging, marketing, and selling to export markets. Doing all that would be very difficult for a start-up.

I would suggest that Sendiaba first think about the markets that use millet products and pick one that is growing quickly and needs the least investment to take advantage of. For example, it might be easier to market to local super markets in Dakar rather than to the U.S. The best way is to talk to these potential customers, like a super market buyer, to find out the unfilled customer needs.

Honeyed Promise of Profits in Kenya

Posted on 26 December 2009 by guest

[guest name="David Kiambati and Dick Turanski" biography="Entrepreneur David Kiambati keeps bees and extracts honey and other bee products when he is not running the computer systems for the California Highway Patrol in Sacramento. Expert Dick Turanski is president of GloryBeeFoods Inc. in Eugene, Oregon. "]

DAVID KIAMBATI, entrepreneur:

Bees and their keepers.

In partnership with Rift Valley Asali Farms (RVAF) in Kenya, I want to expand the current honey business operations by developing value-added items from raw bee products — processed honey, beeswax, propolis, and royal jelly.

These products would be sold on local and national markets. For example, honey could be packaged in small individual jars for sale to Kenya’s many tourist hotels. The bees also provide ingredients to make soap, skin care products, candles, lip balm, and beeswax polish.

One of RVAF’s biggest challenges is the acquisition, installation and operation of modern honey processing and packaging equipment to produce commercial-quality honey products. RVAF also needs an improved marketing and promotion model to go with the expanded honey business. RVAF would welcome any help, knowledge, expertise and assistance from beekeeping organizations, honey processors, equipment manufacturers, and interested parties. It would be helpful if they wanted to participate in the expansion of honey markets in the sub-Saharan countries.

DICK TURANSKI, business expert:

There are many opportunities to develop business through beekeeping and honey production. But selling honey only in bulk is not highly profitable. To go beyond bulk sales, the first step is to establish honey packing for the retail market. At the highest end of the retail market is the gift size, which typically is the smallest size. The honey processor must also tailor products for natural-food consumers, restaurants, and, lastly, for those who use honey to make other products.

A second consideration for a prospective honey entrepreneur is to provide incentives to the beekeeper to produce pure beeswax. Beekeepers must be taught not only how to keep bees, but also how to save wax and to render it into a pure cake by putting the wax into a double boiler. In Uganda, where we have this type of operation, the price for the beeswax is much higher than the price for the honey. Sometimes we get paid twice as much for the wax as we do for the honey. The wax can be used in candle making, lip balm, skin care products, and other things. We do not believe that the production of royal jelly in Africa is feasible at this time.

In order to pack honey adequately, there will be capital requirements — a stainless steel honey tank that can be warmed and straining equipment for removing all the impurities. Also, a scale is essential for maintaining the proper weight. The honey packing facility itself has to be built to the highest sanitary standards. Other necessities are running water and special clothing for the employees.

We are in a position to give our expertise as to what equipment is needed. We would also like to recommend that classes be offered to beekeepers on the most modern methods.

We can assist in importing very inexpensive beekeeping equipment and some processing equipment. Modern beekeeping equipment, such as smokers’ veils, hive tools, extractors can be traded to the beekeepers in exchange for the honey they produce. You might say that there are several divisions within the corporate structure that can be developed. There is the beekeeping division and teaching of beekeeping, supply side of the beekeeper, honey packing and product manufacturing division and then the marketing division.

Dietary Needs Give Rise to Nigerian Fish Farm

Posted on 25 December 2009 by guest

[guest name="Basirat Shonekan-Umaru and Okezie Ofoegbu" biography="Entrepreneur Basirat Shonekan-Umaru, a native of Nigeria, is a certified public accountant in Upper Marlborough, Maryland. She launched UBS Farm, a fish-production business, in Nigeria in 2007. Expert Okezie Ofoegbu, also a native of Nigeria, is vice president of Equity Capital Partners, a Washington-based investment house with a focus on Africa. "]

BASIRAT SHONEKAN-UMARU, entrepreneur:

Salmon fishery in the United States.

My goal is to expand UBS FARMS, which specializes in raising fish and other live stocks. We started operation in July 2007 and registered with the Ogun state government in May 2008.

UBS FARMS was created in response to the long-term objectives of the Nigerian Public Service Commission to expand fish farming as a means to increase protein in the diets of the poor. Since inception, UBS FARMS has been playing a key role in the agricultural sectors in Nigeria’s Ogun state by providing training to local women and advising other fish farmers on technologies. We have employed 10 local experts in fish farming and are looking for experts from abroad to increase our knowledge.

The Nigerian population is growing, so demand for fish is increasing. In order to expand production, we need help to get feeding machines, flood prevention systems and water recirculation equipment.

Last year, we lost most of our production due to flooding. Now, we are using only four of 20 ponds because of the danger of flooding. In order for UBS FARMS to function at full capacity during the rainy season, we need to have a gutter system. Otherwise, we are forced to avoid stocking many ponds during the rainy season. Currently, we are producing 400,000 fingerlings and 32,000 table size fish a year. We see the potential to produce 1,920,000 fingerlings and 160,000 table size fish a year, provided we can get the needed technology.

In this industry, technologies and ideas are constantly changing; we need to be current because it can make a difference in our production. We would welcome an expert to evaluate our operation and suggest ways to improve it.

OKEZIE OFOEGBU, business expert:

Hi, I saw your proposal to expand a fish farm in Nigeria. It’s a great idea because the market for your products is almost guaranteed since food security is a concern to everyone. Also, the ability to achieve greater scale in production would help reduce costs, thus making the product more available to low-income earners.

Here are a couple of suggestions that you might find useful. First, you may want to seek to establish “off take” relationships with potential buyers. By that I mean agreements to sell fixed amounts of product to particular buyers annually.

To convince investors to invest capital to expand your existing output, it is important to show that there an identifiable market for the additional output.

Secondly, it would be interesting looking at what would be needed to add some level of intermediate processing to your production in order to give longer shelf life to your output. That would further increase confidence in the viability of the business plan. Hope you find these ideas useful.

Idea of Student Cards in Ghana is 'Loaded' with Possibilities

Posted on 24 December 2009 by guest

[guest name="Tenu Awoonor, Herman Nyamunga and Imran Qidwai" biography="Entrepreneur Tenu Awoonor is from Ghana and lives in New York. He is an assistant vice president at the financial firm Merrill Lynch. Expert Herman Nyamunga is an independent development consultant and a blogger. Expert Imran Qidwai is president of Zaviah, a high-tech consultancy firm in Boston."]

TENU AWOONOR, entrepreneur:

Tenu Awoonor

Khary Robinson and I met at the Wharton School of Business at University of Pennsylvania. Talking about our respective native countries – Jamaica in case of Khary and Ghana in my case – we came upon the idea of a system of cashless transactions related to education expenses. The concept is simple but has a great potential. Our proprietary system is based on a card, similar to debit card, that can be pre-loaded by parents, or someone else, with a specific amount of money and used by students for purchase of school supplies, books, food and other education-related items or services. The system is secure, and the card allows parents to set daily spending limits and track their children’s expenses.

Student Card Limited's product is already in use in Jamaica

Student Card Limited's product in use in Jamaica

In Jamaica, where Student Card Limited went first in 2007, we have entered into several partnerships, which also allow students to save and parents or relatives to re-load student cards from overseas.

The market in Ghana is similar. We have already talked to local schools and vendors. The big scoop for us would be to partner with the government on a nationwide school feeding program. The use of our system would enable monitoring of the expenses related to the program, thus making it more effective and accountable.

HERMAN NYAMUNGA, business expert:

Money management for parents, especially with regard to educational expenses, is a big challenge. This business provides a much-needed solution in that it will make it easy for parents to specifically allocate money for school supplies and track expenses without any problem. It also addresses the problem of theft, because it is safe to carry.
Such a card system makes it easy for other people who are interested in the students’ academic life to safely load their cards.

Generally, it is a concept which I think will greatly improve learning in that country and also help interested parties understand how much is spent on educational supplies.

Despite all these merits, this business has potential challenges. Firstly, you need uniform vendors across the country that will be willing to accept the card in exchange for goods. Secondly, there will be issues related to verification, especially in remote locations. For example, what happens if someone loses his or her card and he or she is in such a location? Thirdly, I see a problem with manageability – will the amount put in the cards be worth the processing cost incurred, considering the fact that many people in Africa make piecemeal purchases.

IMRAN QIDWAI, business expert:

It is terrific to provide such a convenient alternative in societies that still mostly deal in cash. It is great to see you focus on a specific market segment where your solution provides obvious benefits to parents and children. It appears that some of your features, such as pre-loading, topping up and daily limits, also start to teach fiscal discipline at an early age.

I presume that the system can be expanded to include scholarships from known or anonymous donors in the affluent countries, people who may want to help less privileged but eager students?

A Virtual Marketplace for Small Farms in Kenya

Posted on 23 December 2009 by guest

[guest name="Raymond Rugemalira, Barry Moltz and Imran Qidwai" biography="Entrepreneur Raymond Rugemalira is from Tanzania and lives in Crestline, California. He runs his own, 4-year-old E&M Capital Tek Corporation, which designed a national fiber optic network for Rwanda. Barry Moltz is a small-business expert, teacher and the author of three books on entrepreneurship. Expert Imran Qidwai is president of Zaviah, a high-tech consultancy based in Boston. "]

RAYMOND RUGEMALIRA, entrepreneur:

Raymond Rugemalira, who hopes to pursue a business venture in Kenya, visits his home village Rubya in Tanzania.

Our Uza-Mazao™ venture aims to become Africa’s biggest, 24/7 virtual marketplace. (Uza-Mazao™ means “sell agricultural products” in Swahili.)

Buyers are not interested in purchasing small quantities from farmers who are dispersed among different villages. But during my trips to Kenya, I saw an unrealized trade potential of crops, quality produce and livestock from small plots.

We have developed a sophisticated text messaging system for matching small farmers with potential buyers and transporters. Our software will aggregate small batches from a number of sellers and determine the best sellers-to-buyer match by product, quantity, price, location, and availability dates. Then it will inform the farmers and the buyer about a possible transaction, which can be completed through an existing mobile-phone wallet system.

Registered farmers will form virtual cooperatives according to geographic locations. Revenue for E&M Capital Tek, which manages Uza-Mazao, will be generated from commissions and a small percentage of sales.

Because the idea is so novel, we put much effort in persuading farmers and buyers about its value. As we proceed, we are finding out how difficult it is for entrepreneurs from the African Diaspora, who come with good ideas but without big money, to be taken seriously in an African country. Our Kenyan partner – James Mwangi, who runs a food-supply-service company – helps us establish a presence in the country. But dealing effectively with numerous parties there remains a challenge.

BARRY MOLTZ, expert:

A farmers' market in Kenya.

All marketplaces need buyers and sellers. The problem is how to get them both to come. Most successful marketplaces start with the buyers since, if you have them, the sellers will definitely come.

The entrepreneur should focus on 1. Finding buyers to participate in his marketplace. 2. Testing a small group of transactions to see what issues happen as the marketplace becomes active.

IMRAN QIDWAI, expert:

It is good to see you share your challenges after describing the interesting business idea. Some of the feedback would depend on Uza-Mazao’s business model which is not included in the above description. One obvious challenge in developing a marketplace is that it will only be successful with a significant participation: I.e. more buyers and sellers will help set fair market prices.

Trust is always an issue when promoting a new business, and it is especially a challenge for someone from the outside entering a closed circle in an under-developed region. A simple parallel is that, even in Western markets, we talk of trusted brands and are willing to pay a premium for those brands. A way to success is to identify a few people who already are trusted in the local environment and to focus on gaining their support. Depending on your business model, you may want to offer these people direct compensation or results-based incentives to work with you.

In his book The Tipping Point, Malcolm Gladwell describes how a maven — in this case an entrepreneur with a business idea — may achieve success by collaborating with “connectors,” people who know “everyone.” Given the wide network of people by whom they are trusted, connectors can easily convince the target population about the maven’s ideas.

Learning Medicine by Videoconference in Nigeria

Posted on 22 December 2009 by guest

[guest name="Fiemu Nwariaku, Barry Moltz and Rob Sprang" biography="Entrepreneur Fiemu Nwariaku is from Nigeria and lives in Dallas. He is a surgeon and associate professor at Southwestern Medical School. Barry Moltz is a small-business expert and teacher and the author of three books on entrepreneurship. Expert Rob Sprang is director for Kentucky TeleCare and project co-manager for Kentucky TeleHealth Network at University of Kentucky."]

FIEMU NWARIAKU, entrepreneur:

Fiemu Nwaariaku

There is a major deficit of skilled doctors and nurses in developing countries, where medical skills often lag behind developed-country standards. Producing new doctors takes too long, and upgrading their skills is expensive because they frequently have to be sent overseas for training.

Trigen Healthcare proposes to close the skills gap by training medical workers more efficiently using sophisticated high-definition videoconferencing technology. This technology will allow us to deliver lectures and skills training to more medical workers at a much lower cost. We will connect Nigerian doctors and nurses with medical experts at major U.S. and European medical centers, who will provide training. Participants in Nigeria will interact with overseas trainers in real time. Our local partner in Nigeria – Galaxy Backbone Plc – offers broadband Internet connectivity necessary for the videoconferencing technology to function efficiently.

In July 2009, we successfully transmitted a live surgical procedure from Texas to Abuja, Nigeria, during a training session for doctors. This trial run proved that our technology works. Our goal is to provide value for our customers while enhancing human development in sub-Saharan Africa.

BARRY MOLTZ, business expert:

Can medical skills be learned through videoconferencing? I suspect that some can and that more of the skills need to be learned in person through demonstration and participation. The entrepreneur needs to find out which skills can be learned through videoconferencing and which skills doctors want to learn this way. He should teach a narrow range of skills first to ensure the technology and the medical material are successfully learned.

ROB SPRANG, business expert:

Learning surgical techniques by videoconference

The Kentucky TeleCare Network does a great deal of medical and other healthcare professional education via videoconference technology. It is my understanding that the proposal will be to use the technology to train healthcare workers to deliver a higher level of healthcare services than they are currently capable.

There is no reason that you cannot train healthcare workers via videoconference technology, but you must be sure that the competencies can be taught and measured using the technology. There are some clinical techniques that probably don’t lend themselves to videoconference teaching, but if the curriculum is appropriately structured, content is properly delivered and outcomes and competencies are carefully determined and measured, then this idea should be fine.

I would suggest that in order to test the strategies, you may wish to pilot test some of the training with a control group that receives the testing in a traditional face-to-face format and the experimental group that is simply in another room, but connected via videoconference technology. This may require that the content and teaching methodologies be modified to distance learning so that the objectives may be met. Simply broadcasting the same lecture that is done face-to-face may not be effective.

Our 3rd year medical students who travel to rural communities for clinical rotations utilize the technology to connect for their weekly Problem Based Learning, Journal Club, lectures and other teaching, so there is certainly a precedent for this kind of activity.

Beginning in 2010, the Rural Leadership Track will select 10 students who have performed their first two years of medical school at the University of Kentucky (UK) to be placed in a rural community hospital where they will receive their final two years of medical school education. They will participate in many lectures and educational programs with their classmates at UK via videoconference technology.

IT Services Look for Better Grades in Ghana

Posted on 18 December 2009 by guest

[guest name="Kobbina Awuah, Herman Nyamunga and Imran Qidwai" biography="Kobbina Awuah is from Ghana and lives in Ithaca, New York. He recently earned a Master of Science degree in mechanical engineering at Cornell University and works at the energy company ConocoPhillips. Responding to his idea are Herman Nyamunga, an independent development consultant and blogger who lives in Philadelphia, and Imran Qidwai, president of Zaviah, a high tech consultancy based in Boston."]

KOBBINA AWUAH, entrepreneur:

Kobbina Awuah, in yellow shirt, works with a student.

The local primary school student (pictured with me) was one of the first visitors to a computer center I helped to establish for a non-governmental project in Bimbila, Ghana. Like most African youth, he possessed an eagerness to use the facility. It was one more proof that my business venture – Peak INFOTEK, a publishing and IT firm – is badly needed. My company aims to establish state-of-the-art computer labs and learning centers for faculty and students at Ghanaian universities. The labs and centers will be equipped with PCs connected to the Internet, educational software programs, printers and copiers. Registered users will be able to use some services via a dedicated website in their homes or dorms.

In 2007, while conducting research at Ghanaian universities on IT services, I realized that they have been lagging. The universities lack computer centers with Internet access, and students frequently have to wait in long lines to have access to copiers and printers, which are often located in the open.

I have put together a strong management team in Ghana. They have since conducted extensive market studies, which have enabled Peak INFOTEK to develop several innovative solutions. We will be launching our first IT facility in Kumasi in February 2010.

HERMAN NYAMUNGA, business expert:

In Ghana, students often wait in long lines to use copier machines.

In Ghana, students wait in long lines to use copiers.

This is a good business venture with potential to improve learning through exchange of ideas, research, and increased communication. Students will be able to access external resources to help in research and other academic projects. Most students in Africa lag behind in studies due to lack of access to quality learning resources. This facility will help to ease that problem. It will provide the students with unlimited Internet access for research and allow them to print and present their class work. Faxes will facilitate faster transmission of documents. Copiers, which are critical at African universities, will increase access to textbooks whose numbers are limited.

Universities could also use Peak InfoTek computer centers to offer online classes to reduce classroom congestion.

The challenges I see with this business model include the issue of affordability: are there enough people who can afford the venture’s services to generate a profit? Another challenge is that many students in Africa are not computer literate, so in order to increase access, you must deal with that problem too.

IMRAN QIDWAI, business expert:

As we all know, the Internet has significantly changed human lives in the past 15 years. However, it is unfortunate that large numbers of people in the developing world still lack access to computers. Anything that can help speed up and ease the access to computing resources will be phenomenal in helping the university students reach their potential.

One key to long-term success will be to make these centers sustainable, with locals trained to maintain the systems in fully operational optimum conditions. The long-term strategy should also include plans to take similar computer access and education to primary and secondary schools, so that children can start learning computer skills earlier to take advantage of the wealth of information available on the Internet.

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