“Around 400 million people in the last year got a smartphone. If you think that’s a big deal, imagine the impact on that person in the developing world.” – Eric Schmidt, Executive Chairman, Google, USA

VENTURES AFRICA – The movie “The Last Samurai” comes to mind. The armies of the forefathers were far more equipped strategically to deal with matters of war. It certainly did not rest on the battalion numbers and equipment. One of the lessons from that movie – be careful who you think you can govern. Heritage takes precedence over everything.

Turn on CNN and you’ll find the news as it is….sometimes a bit exaggerated, but there is very little good news at the moment. In the current state the world is at a point of strained cadence. Globally, geographically the world may have seemed flat, but economies are overwrought. This is accentuated by the fact that companies and governments alike seek sustainable solutions to “do more with less.” Certain natural resources are no longer plentiful for various reasons, food is simply because most of it is wasted, and some are at risk of exhaustion. Population and urbanization continue to rise due to employment centralization and due to the snail’s pace of infrastructure development to accelerate economic activity in stagnant areas.

Particularly, this is a resident nuance in Africa. Today, the world is looking to emerging markets, particularly Africa. They have their eyes set on us. Let us remember that that while CEO’s at the WEF2015 state technology is great for learning in Africa, who of them report this as part of their annual results linked to profit margins. Technology companies are profit driven and merely investing in profit driven growth.

In droves they come, setting up shop as multinational companies. Included in their suitcase is an array of experience and skills that have been tried and tested in developed economies. Very soon they realise that more challenges and risks may exist out there other than opportunities – if not managed well.

“Innovation for us is coming from emerging markets… All the great ideas R coming from the outside” – Coca cola CEO

If these investors do not have ‘pack’ a case full of effective methods and behaviour that satisfy the needs of local markets, that liquesce into local communities, environments and cultures, they will not achieve success in emerging markets.

Without thinking, German engineer Karl Benz invented the first petroleum-powered automobile, without knowing that he did not just create an engine with wheels. For generations to come, he set the chain-ring in motion for an industry that revolutionized the way society today is structured, and has evolved since. Similarly, English computer scientist Tim Berners-Lee had not built the world’s first Web site. He became alexander the great for what we know today as the World Wide Web. As with many inventors they unselfishly and not through ignorance ignored the impact for that which we enjoy today.

There are four critical elements of note to guide us going forward.

The first is ethical compass: the world is riding a wave of super waves of economic growth in places like Africa. Frankly we still retain a large uneducated population, who seek the ability to “consumerise” and not make financial decisions that impact sustainable livelihoods. This is the continued theme of the Progress Panel to slow and ultimately halt corruption through illicit outflows.

Then we have the multinational CEO’s who see opportunity to take advantage of the scenario. This is how it plays out. The corruption is pointedly carried out in the sovereign country by respective officials. It is then only money that is shifted to tax havens by multinationals. This stunts innovation. Simply through lack of investment in local economies and research for African solutions, Africa is losing out on investing in their own continent. So innovation must have a moral compass. Innovation must rectify and advance life in Africa first and foremost and must serve as an economic export. The CEO of Coca-Cola recognises this, and if it is African, Africa must reap the financial rewards and hold the rights to the intellectual property.

Secondly, sustainable innovation: according to the WEF2015 report; “Most consumers in emerging markets desire and prefer products with cost effectiveness and innovative functionalities. Therefore, how to find the most optimal balance between innovation and cost is one of the most significant elements, which is also an essential capability to gain customers and achieve sustainable growth in emerging markets.”

There has to be some level of disagreement here. Innovation functionality must solve a problem from the African consumer. No more based on the limited resources can we only just invest in consumerism? Innovation resources must have a source. If this source is in Africa, what are the sustainable impacts given the lagging stages of development on the continent? We have to take the thinking much deeper.

Thirdly, speed to market via infrastructure: at an average growth rate of over 5 percent. Sustainability is a acute question. If we measure the cost to benefit ratio of a smartphone to the majority of consumers in Africa, cost will top actual productive use and household affordability.

“If we can extend [the internet] to more people, we increase voice… we increase economic opportunity… and we increase equality.” – Sheryl Sandberg, Chief Operating Officer and Member of the Board, Facebook, USA

If we investigate the number of internet users from the 400 million smartphone users, can we honestly say that there is an impact of improved quality of life? Again, understanding or misunderstanding the playing fields in new markets, despite growth can be dangerous for investment and population poverty to economic mainstream conversion and migration alike.

Then we consider that in the current form, speed of delivery of innovation must meet speed of infrastructure innovation. Plug the annual $40 billion infrastructure funding gap and let’s get the ball rolling.

Fourth, Meet the Local Partner: ideally there will have to be local partners that can meet the expectations in every capacity to handle major investments. This is ideal to integrate into local geographies as the know-how for navigating local markets.

If we go back into the history of the industrial revolution depictions of economic progress, we find that there existed many economic models that tested negative. The stories being put forward are ignoring the fundamental narratives of the African people, history and status quo.

I have browsed most quotes on innovation and the internet from the WEF 2015, a body and gathering I hold in the highest regard. There is a deficit on research with reference to Africa and emerging markets, more steered to making innovation or European and US based technologies available to Africa consumers.

Richard Quest is also a highly regarded anchor and personally live off his content from a global perspective. However, in a world where the US and Europe are lagging in growth, emerging markets received the bottom of the shoe coverage for the markets that have the greatest growth and prospect for investment.

We need a change and the Chair of the WEF ought to take cognisance that African CEO’s who have built billion dollar companies on the continent should be the ones directing thought leadership….

Or maybe, just maybe innovation starts with media coverage, with African skill and talent, a people with a history of storytelling.

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