Zimbabwe Introduces New Digital Currency Amid Economic Turmoil

Opinion Editorial

The Writer Clive Ayuko is the Managing Editor of Whistling African.

Harare, Zimbabwe – In a bold move to stabilize its embattled economy, Zimbabwe has introduced a new digital currency aimed at curbing hyperinflation and restoring public confidence in the financial system. The Reserve Bank of Zimbabwe (RBZ) announced the launch of the digital Zimbabwean dollar (Zimdollar) marking a significant shift in the country’s monetary policy.

The new currency, officially named ZimCoin, is a Central Bank Digital Currency (CBDC) designed to operate alongside the existing physical currency. The RBZ hopes that the digital currency will enhance transaction efficiency, reduce the cost of printing money, and provide a more secure and transparent monetary system.

Economic Context and Motivations

Zimbabwe has faced chronic economic challenges over the past two decades, with hyperinflation, currency devaluation, and widespread unemployment wreaking havoc on the nation’s economy. The introduction of the ZimCoin comes as part of broader efforts by the government to modernize the financial system and combat inflation, which remains a persistent issue.

Governor John Mangudya of the RBZ stated, “The launch of the ZimCoin represents a new chapter in Zimbabwe’s economic recovery efforts. We believe that a digital currency will provide a more stable and efficient means of conducting transactions, reducing the reliance on physical cash, which has been prone to counterfeiting and other abuses.”

Public Reaction and Challenges

Public reaction to the new currency has been mixed. While some see it as a necessary step towards economic stabilization, others remain skeptical due to the government’s track record with previous monetary reforms. Trust in the RBZ has been eroded over years of economic mismanagement and failed currency initiatives.

One Harare resident, Tafadzwa Moyo, expressed cautious optimism: “If implemented correctly, the ZimCoin could help ease some of the issues we face with cash shortages and inflation. But the government needs to ensure that this is not just another failed experiment.”

The successful implementation of the ZimCoin will depend on overcoming several challenges, including ensuring widespread internet access and digital literacy among the population. With a significant portion of Zimbabweans lacking reliable internet connectivity, the RBZ faces an uphill battle in promoting the adoption of its digital currency.

International and Regional Implications

Zimbabwe’s move to adopt a digital currency is being closely watched by other African nations facing similar economic issues. If successful, the ZimCoin could serve as a model for other countries in the region looking to stabilize their local currencies.

Net-zero target is within reach if pursued deliberately

Opinion Editorial

By Marius van der Ham

As of 2022, air travel carbon emissions reached an estimated 800 Mt or 2% of the global energy-related greenhouse gas emissions. And while this was approximately 80% of the pre-pandemic levels, increasing demand for aviation services – projected to grow at between 2% and 5% by 2050 – will ultimately drive up the quantity of carbon emissions generated by the airline industry.

However, this adverse trajectory can be averted. By ramping up innovative aircraft technologies, “streamlining” flight operations and increasing the production and use of sustainable aviation fuels (SAFs), airlines can reduce the generation of carbon emissions by the quantities required to achieve Net Zero earlier than the 2050 target.

At Air France, we have taken the prerogative to accelerate our impact in this regard. For instance, we are continually upgrading our fleets to modern technologies, which generate much lower emissions. As of 2025, we will have added 38 Airbus A350s to our long-haul fleet and 60 Airbus A220s on our short and medium-haul fleet, replacing the A318 and A319 fleets. The new-generation aircraft produce 20% to 25% less carbon emissions, and their noise footprint has been reduced by a significant 40%. They also consume significantly lesser fuel. The aircraft on our fleet currently consume an average of 3.3 litres per passenger/100km.  In comparison, the A350 consumes nearly 25% less at 2.5 litres per passenger/100km. This is as the A220 expends 2.6 litres per passenger/100km, thanks to the incorporation of close to 40% lighter materials (lithium aluminium and composite materials) in its construction.

Yet flight renewal is only part of our multi-pronged strategy to reduce the carbon footprint of our airline. We are also pioneering the transition to SAFs, which will be the main lever for decarbonising air transport in coming years. Produced from non-fossil fuel sources, the SAFs selected by Air France reduce carbon emissions by at least 75% over the entire life cycle, and can be used today without any modification to aircraft and flight operations. As part of the supportive ecosystem, we have engaged our customers to support the accelerated adoption of SAFs through a subscription option that allows them to voluntarily contribute during ticketing a fee to facilitate the use of sustainable aviation fuels (SAFs) in our flights, including cargo hauls. Customers are free to choose their level of investment, with a guarantee that their contribution will be exclusively used to purchase SAFs, cleaner alternatives to conventional jet fuel.

Meanwhile, we also run arrangements that favor low-carbon alternatives on shorter journeys, and more energy-efficient flights on longer journeys, helping our customers to minimise the overall carbon footprint of their trips. For example, in France, we have over the last 25 years offered a service that allows our customers to combine train and air travel in the same reservation, with guaranteed connections. This ‘intermodiality’ option is popular with customers travelling to and from Paris-Charles de Gaulle and the Paris-Orly airports, with more than 160,000 travellers using it every year.

Finally, from an operational standpoint, we are implementing eco-piloting techniques that significantly reduce aircraft fuel consumption. For instance, our pilots are trained to use single-engine taxiing, saving up to 700kg of fuel per departure and arrival for the Airbus A350. They also leverage AI-powered tools to optimize flight trajectories for fuel efficiency. Moreover, pilots can use bridge electricity instead of the aircraft’s auxiliary power unit (APU) before engine start-up, further reducing fuel usage.

All the aforementioned efforts align with Air France’s commitment to sustainability and environmental responsibility through prudent energy management and deliberate emissions reduction. By implementing innovative aircraft technologies, including the adoption of fuel-efficient aircraft, and investing in alternative fuels, as well as business practices that are considerate of our energy usage and waste production, Air France continues to set a benchmark for the aviation industry. 

The writer is the General Manager for East, Southern, Nigeria, and Ghana at Air France-KLM.

Now Is the Time to Increase Financial Inclusion

Opinion Editorial

The Author Ms Janet Mawiyoo is a Trustee of the I&M Foundation and the CEO of Galvanizing Africa Consult with over 30-yrs experience in the global non-profit sector.

Since the historic World Conference for Women in 1995, known as the Beijing Conference, women worldwide, including those from Kenya, have determinedly advocated for economic empowerment. The conference marked a pivotal moment in advancing the global agenda for gender equality by adopting strategic initiatives aimed at promoting women’s economic rights and independence. These initiatives agitated for access to employment, appropriate working conditions, and empowering women with control over economic resources. Nearly three decades have passed since these measures took center stage in the public discourse and their impact has been varied.

In 2013, The Africa Development Bank defined financial inclusion as encompassing all initiatives that render formal financial services available, accessible, and affordable to every segment of the population. Achieving this goal involves addressing the needs of populations historically excluded from the formal financial sector due to factors such as income levels, volatility, gender, geographic location, type of activity, or level of financial literacy.

In the intervening years, Kenya has witnessed significant progress, marked by the implementation of diverse measures aimed at alleviating and ultimately eradicating poverty among women and girls.

In July 2019, marking 25 years post-Beijing, the Ministry of Public Service, Youth and Gender published a report on the Progress on Implementation of the Beijing Platform for Action.

Encompassing a spectrum of initiatives, the report outlines endeavors geared towards promoting gender equality in pivotal domains. Noteworthy among these is the establishment of financial mechanisms designed to facilitate access to funding. Examples include the Women’s Enterprise Fund and the Uwezo Fund, which received allocations amounting to Kes. 182.9 million and Kes. 10 billion, respectively, as disclosed in the 2023/2024 budget announcement by National Treasury Cabinet Secretary Njuguna Ndung’u.

The primary objective of these funds is to enhance women’s access to affordable credit, aligning with the broader goal of achieving Sustainable Development Goals 1 and 5, addressing poverty eradication, gender equality, and women’s empowerment. Despite these efforts, a critical question arises: why does a gap in inclusion persist and what factors contribute to its resilience?

According to the 2021 FinAccess Household Survey, a report released in 2022 by Financial Sector Deepening (FSD), 83.7% of Kenyans have access to formal financial services. Notably, the gender gap in financial access has shown improvement, decreasing from 8.5% in 2016 to 5.2% in 2019, further narrowing to 4.2% in 2021. Despite advancements in formal financial inclusion driven by increased access to mobile money, women still resort to informal channels for financing, irrespective of their income or educational levels.

This highlights the prospect of engaging women-led communities and networks. Of prominence is the trend of women involved in ‘chama’ groups; informal, communal, and social networks rooted in familial and social connections, extending financial support and across various aspects of life.

These networks are characterized by robust cohesion, with members carefully vetting each other for membership, built on a foundation of implicit trust. Typically, these ‘chamas’ also integrate some form of financial investment, through projects, table banking and revolving funds, or the exchange and trade of goods and services among members.

As the curtains come down on this year’s International Women’s Day whose theme ‘Inspire Inclusion’ underscored the significance of diversity and empowerment across all facets of society, it compels us to acknowledge and appreciate the distinctive perspectives and contributions of women hailing from diverse backgrounds, including those within marginalized communities.

By establishing pathways for women through the prioritisation of education, skills development and technological access, we unlock avenues for women to progress and contribute to a more inclusive financial sector.

As we forge forward, it is clear that is isn’t about merely about uplifting individual lives but a collective investment in a future where no woman is left behind and the potential of the next generation is unbounded. The journey towards true financial inclusion is ongoing, requiring sustained commitment, innovation and a collective societal drive to dismantle the remaining barriers.

Sustainable business strategies for Small and Medium Scale in tough times

By Julius Ouma

Small and medium enterprises, or simply SMEs, are an important pillar of Kenya’s economy, creating millions of jobs and driving innovation in key sectors of the economy. Apart from propelling economic growth and development, SMEs also underpin social transformation of communities through livelihood opportunities and poverty reduction.  

However, the current economic landscape dominated by high interest rates, fuel price hikes, rising taxation, decline in disposable incomes and reduced consumer spending, is threatening the long-term viability and survival of many small businesses. Hence the need for sustainable growth strategies, to enhance the resilience of small enterprises to such disruptive shocks, while boosting their ability to thrive into the future.

This entails nurturing ‘future-ready SMEs’ that exhibit a strong capacity to overcome prevailing macro-economic challenges while generating long-term financial, economic and social value. The term ‘future-ready’ is said to have been coined by researchers at Aston University in the UK to refer to “a set of capabilities and orientations that enable companies to thrive in the future.”

They characterize future-ready businesses as having three key traits: long-term growth, societal impact and adaptive capacity. So, how can SMEs in Kenya navigate the tough times and become future ready?

First, they need to invest in income and revenue streams that enable them to achieve sustained growth. This includes product diversification and geographical expansion to capture a wider market. One of the factors hindering SME growth is focusing only on one product or market. This is of course not a walk in the park in the prevailing context of deteriorating consumer spending. However, with a little bit of innovation small enterprises can venture into uncharted territory and offer unique value propositions to customers.

Take the case of businesses that thrived during the Covid outbreak four years ago by coming up with imaginative ways of sustaining clientele during the lockdown by embracing home delivery. As they say, never waste a crisis but use it as an opportunity to learn and grow.

Second, SMEs must re-evaluate their true purpose in society. Successful businesses are those that address and solve a real problem facing human society. In the process, they build a loyal base of customers who keep buying their products and services. Every SME must define what it does best and focus on that “sweet spot” in order to thrive.

Third, SMEs need to come up with clear strategies to enable them to adapt to the changing business environment. One such strategy is innovation. From the example above of businesses that turned the pandemic into a massive business opportunity, innovation represents one of the most effective methods of overcoming adversity.

In addition to adapting to dynamic market realities, SMEs need to build resilience to secure business continuity. This entails building a reservoir to act as a buffer for tough times. This way, the business is still able to meet its obligations to customers, creditors, suppliers and regulators thus minimizing the risk of severe liquidity challenges.

Another strategy through which SMEs can enhance long-term viability is through growing their business networks. Joining industry bodies like private sector associations and trade chambers allows them to tap into an expansive business ecosystem to grow their market.

However, in pursuing these goals, SMEs also need to manage costs in an efficient manner. Nowadays, technology has helped streamline business processes in unprecedented ways thus saving time and money and providing much-needed customer convenience.

And while it is true that the majority of SME lack access to financing, working with a financial partner who understands their needs is crucial. Such a financial partner is able to provide working capital solutions especially when the business is facing liquidity constraints as is the case with many small and medium-sized firms in Kenya at the moment.  

Innovative trade finance solutions also go a long way in boosting the ability of a business to tap into new markets.

Mr. Ouma is Acting CEO, Faulu Microfinance Bank Limited . His email is Marketing@faulukenya.com

To Address Food Insecurity, Kenya Must Reform Food Systems and Land Use

By Assan Ngombe, Resilience Officer at AGRA

Despite the Kenyan economy showing resilience in the face of a recent series of shocks, food insecurity remains a major challenge. In the wake of the COVID-19 pandemic, for instance, the country’s real Gross Domestic Product (GDP) grew 7.5 percent in 2021, compared to a low 0.3 percent a year earlier, when the effects of the pandemic were at their severest. Even then, this level of success has eluded the country at the meal table, with 10 million Kenyans classified by the government as suffering from chronic food insecurity and poor nutrition. The performance is no better when Kenya is compared to other nations with the country ranked 90^th out of 125 countries on the Global Hunger Index of 2023, with its hunger level designated as “serious.”

While agriculture remains the dominant sector of the Kenyan economy, accounting for 22.4 percent of the GDP, according to 2021 data from the Kenya National Bureau of Statistics (KNBS), Kenya has been unable to produce enough food to feed its growing population. Food production has been constrained by a number of factors including the low adoption of technologies by farmers, food loss and waste, low private sector investment, drought and other climate-related challenges.

The increasing gap between food production and population growth has resulted in the inevitability of imports, which have been increasing gradually, to fill the deficit. Between the years 2017 to 2021, food imported for household consumption rose 23.2 percent to reach a value of Sh228.4 billion, up from Sh185.4 billion. In a worrying trend, food now constitutes 17 percent of all imports into Kenya, having risen from 10 percent in the last decade, which translates, in real terms, into an increase in value from $1.2 billion to more than double that at $3 billion.

The inescapable corollary to this situation is that Kenya has become highly vulnerable to global food shocks, such as the logistical challenges presented by the COVID-19 pandemic and the Russia-Ukraine war. How can Kenya engender a sustainable food system and future-proof its food security in an uncertain world, going forward?

A group of experts believes that Kenya must transform its food and land use systems in order to achieve the capacity to feed its people, in an inclusive, equitable and environmentally sustainable manner and ultimately reducing dependence on imports or worse still, aid from other countries. The group brings together 44 member organizations, with its secretariat hosted by AGRA, World Resources Institute (WRI) and GAIN (Global Alliance for Improved Nutrition). Working collaboratively under the banner of the Food and Land Use (FOLU) Coalition, and with the input of the national and county governments, the group of experts, on World Soil Day (December 15, 2023) launched Kenya Food Systems and Land Use Action Plan 2024 – 2030.

A product of several engagements and validation, especially with county governments and regional economic blocs, the plan identifies five key ‘transition’ challenges which must be addressed for Kenya to attain an equitable food security and sustainable land use systems. These transition areas are 1) ensuring healthy diets; 2) promoting productive and regenerative agriculture systems; 3) protecting and restoring nature; 4) curbing food loss and waste and 5) youth and overall social inclusion.  The report also addresses cross-cutting issues such as harnessing digital technologies in addressing food and land use issues in the country.

The prescriptions for addressing the challenges faced by Kenya’s food and land use systems are based on the review of the legal, policy, regulatory and institutional frameworks and consultation with stakeholders, including officials of county governments as agriculture and the management of food systems is a devolved function.

With the Ministry of Agriculture and Livestock Development as the proposed lead implementor with the support of other line ministries like Environment and Natural Resources, Health, Water and Irrigation and Lands, the plan identifies priorities that, if executed, could contribute to Kenya achieving sustainable food and land use systems.

For Kenya to transit to sustainable and healthy diets, for instance, the plan seeks the pursuit of a number of strategic objectives. These include the production, consumption, preservation and trade in diversified and nutrition-adequate diets, especially those that are plant-rich; focusing on the implementation of a coherent, conducive legal, regulatory, and institutional framework for seeds, animal breeds, and fish fingerlings production, multiplication, distribution, and access to markets; scaling up programs for the fortification or bio-fortification of widely consumed staple foods such as maize and promoting the utilisation and consumption of ‘forgotten’ indigenous foods. Still on health diets, the plan prioritizes the review and implementation of micronutrient, healthy diet guidelines and strategies and harmonization of inter-county taxes and other levies to enable easy movement of food within Kenya’s borders.

The completion and launch of Kenya’s food and use action plan is timely as it coincides with the endorsement of a new Declaration on strengthening food systems, building resilience to climate change, reducing global emissions, and contributing to the global fight against hunger, aligned with the UN Sustainable Development Goals (SDGs) at COP28. Kenya is one of over 130 countries, globally that has endorsed the declaration. The food and land use action plan will therefore serve as one of the key policy and programme instruments, that will contribute towards putting inti action the commitments made in signing the declaration.

THE VITAL ROLE OF CODING IN MODERN EDUCATION FOR EMPOWERING TOMORROW’S WORKFORCE

Opinion Editorial

By Austine Omeno

Mr Austine Omeno is the Principal of The Eastlands College of Technology, a project of Strathmore Educational Trust

There is no doubt that Kenya is in the midst of an unemployment crisis. However even as we face this challenge, there is a ray of hope in the tech sector. The tech sector is proving resilient and is backing the trend. The tech sector in the last few years has become a dominant employer, more so through self-employment.

While various sectors of the economy grapple with challenges, such as significant job losses that come at a time when there is a high supply of workers, the tech industry, particularly in coding, confronts a distinct dilemma: a pressing demand against a limited pool of proficient and seasoned computer programmers.

This surge in demand for skilled coding talent has ignited fierce competition between Silicon Valley giants, established local industry leaders, and ambitious startups, each vying to secure a share of the limited pool of highly skilled tech professionals.

The young Kenyans in the meantime are enjoying the spoils of this tech labor war through highly competitive remuneration packages.

Furthermore, owing to the rapid evolution within the technology sector, the demand for highly skilled tech professionals is projected to surge both on a local and global scale, offering an even broader spectrum of career opportunities for our youth.

Blockchain technology, artificial intelligence, the Internet of Things (IoT), quantum computing, and other emerging technologies are fueling this growing demand for skilled tech labor.

Locally, the Government, as stated in the Kenya Digital Blueprint (2022-2032), has recognised the transformative potential of these emerging technologies.

Kenya’s Digital Blueprint states that these emerging technologies have the transformational potential of automating administrative procedures and digitizing health records, predicting a significant improvement in healthcare delivery.

Food security will be strengthened by the implementation of agricultural information systems that seamlessly connect governmental organizations, farmers, and agro-businesses. Additionally, it is predicted that digitizing land records will reduce fraud and unlock untapped wealth.

Needless to say, to make all of these possibilities come true, there has to be a massive investment in skilled labor. This is why educational institutions, from the elementary to the tertiary levels, must invest in coding skills.

Our educational institutions must also invest resources in preparing students for the ancillary services required to support this transformational project, in addition to coding expertise.

For example, Kenya will have to invest in infrastructure such as data centers. This presents an opportunity for skilled labor that will be needed to install all the hardware and networking needed.

To fasten this transformational journey learning institutions should partner with industry stakeholders so that there is immediate and relevant skills transfer. Companies, be they in consumer electronics, database management, software engineering, or networking, can partner with universities, and Technical and Vocational Education and Training (TVET) institutions, and to custom-make curricula that are relevant to the industry needs.

This is why at Eastlands College of Technology we decided to partner with Samsung Electronics East Africa to develop and execute the Samsung Innovation Campus programme where we will be running a specially designed curriculum focused on technology development. Our students will acquire special skills in AI, IoT, Big Data, Coding and Programming. This programme that is specially designed by Samsung Electronics also trains participants on a range of soft skills to foster talented youth who will go on to shape our future society.

Through this partnership, not only do we hope to also strengthen our Dual Training System , but we also hope to bridge the gap between conventional academic content and the dynamic demands of the tech industry to cultivate key human resources that will lead the 4th Industrial revolution.

If our Silicon Savannah should compete with existing tech hubs like Silicon Valley, Bangalore, Shenzhen, Dublin (Silicon Docks), Tokyo, Taipei, and Seoul in becoming global innovation powerhouses, then we need to be prepared. We need to have a radical mind shift. We need to invest and be ready to walk the talk. As TVETs, we have a crucial role to play that will be determined by the strategic partnerships we seek.

INEFFICIENT WASTE MANAGEMENT PRACTICES CATALYSING THE CLIMATE CRISIS

Nairobi, Kenya 27th October 2023

Opinion Editorial

By Martin Mugambi Advocacy officer Kenya Platform for Climate Governance PACJA

Improper waste management is detrimental to ecosystem and contributes to climate change catastrophe
The problem of waste management has become so rampant in different parts of the country with policy makers in urban centers, cities and towns forced to struggle how to manage waste with adverse consequences on the ecosystem.

With population increase, the amount of waste generated has increased as a result of this population rise forcing urban centre managers to re-evaluate how to dispose of the extra waste.

Greenhouse gases released to the ecosystem as a result of disposal or incineration of such waste is in turn causing long term effects on the environment. Urgent action is therefore of essence that if not taken many more people will continue to suffer negative effects of climate change.

The long effects include contain gene mutation in animals, non communicable diseases cancer is on the rise in addition to destruction of natural resources.

This has in turn affected sectors like in Agriculture with farmers continuing to reap lower and lower harvests while many others forced to emigrate to urban centres to seek employment.
To address this issue we call upon the county government to implement policies put in place to aimed at regulating waste management at the county levels.

Additionally, there is a need to ensure national government and county governments implement the Sustainable Waste Management Act to ease the regulation of waste management in the country. The government must also strengthen the existing environmental centric institutions and parastatals in addition to increasing the number of enforcement officer monitoring the disposal of wastes in different parts of the country.
There is a need for government to invest in environmental friendly initiatives by supporting individuals and organizations involved in recycling and reuse initiatives. This will help in reducing the amounts of greenhouse gas emissions released into the atmosphere.

Financing sustainable energy will unlock Kenya’s food security potential

By Julius Ouma. Mr. Ouma is the acting CEO, Faulu Microfinance Bank Limited.

Sustainable agriculture has been identified as a critical pillar in the quest for food security. With a rapidly growing human population, expected to reach 10 billion by 2050, there is an urgent need for sustainable ways of producing sufficient, nutritious food for all, while addressing the impact of climate change on agriculture.
As defined, sustainable agriculture generally refers to the production of adequate food without degradation of the environment or increasing the levels of atmospheric greenhouse gases (GHGs), a major driver of climate change. With agricultural activities said to emit 20 percent of global GHGs, adopting long-term, climate-sensitive farming practices is therefore imperative.
At the same time, there can be no sustainable agriculture without sustainable energy. Energy is a vital input in food production. At the farm level, energy is used to power irrigation systems, water pumps, cooling facilities, drying machines, tractors, and other equipment required for efficient food production.
Basically, sustainable energy means forms of energy that are constantly available with little or no risk of depletion but are also environmentally friendly. A good example is energy from the sun, wind, and heat within the earth (geothermal). These do not pollute the atmosphere, unlike fossil fuels. Various studies have demonstrated that using this renewable resource in irrigation, harvesting, processing, storage, and transportation of food, is an effective method of promoting sustainable farming.
According to the International Fund for Agricultural Development (IFAD), renewable energy along the agricultural value chain can “help improve energy access and security, diversify farm and food processing revenues, avoid food waste, remove dependence on fossil fuels, and reduce greenhouse gas (GHG) emissions while at the same time building the adaptive capacity of smallholder farmers to withstand climate shocks.”
Solar water pumps and irrigation systems help farmers reduce dependence on rain-fed crops thus boosting farm productivity and transforming livelihoods. Precision irrigation and other novel crop production techniques enable climate-smart agriculture. Post-harvest loss is another challenge confronting farmers, especially in areas with poor infrastructure. Wind or solar-powered coolers and dryers come in handy to prevent the deterioration of farm produce before it gets to market. Energizing farms is also crucial to value addition thus further improving farmers’ incomes and livelihoods.
Sustainable agriculture coupled with sustainable energy is a winning combination. A 2021 publication by the Food and Agriculture Organization of the United Nations (FAO) and the International Renewable Energy Agency (IREA) reports that the deployment of solar irrigation pumps has increased farmers’ incomes by 50 percent in India, and by one-third in Rwanda, compared to relying on rain.
Despite all these benefits and the fact that they produce more than 70 percent of the food we consume, small-scale farmers face multiple constraints in accessing renewable energy technologies key among them financing given the high initial cost involved. This is where innovative funding models come in to address this challenge critically, enabling farmers to make that critical leap from subsistence to commercial agriculture.
For this reason, Faulu Microfinance Bank has partnered with GIZ to support smallholder farmers in accessing and using solar energy as part of the Sustainable Energy for Smallholder Farmers project being implemented in Ethiopia, Kenya, and Uganda. Initially, 400 farmers in the dairy and horticulture value chains in the six counties of Kirinyaga, Meru, Murang’a, Nakuru, Machakos, and Makueni will benefit from the initiative.
The project will also support the beneficiaries in improving their livelihoods, enhancing resilience to climate change, and boosting productivity. In addition, accelerating renewable energy integration into our agro-systems, targeting the over 7.5 million smallholder farmers in Kenya, is key to ending hunger and securing their future and ability to contribute to the country’s food sufficiency and crucially, creating an inclusive and climate-resilient agriculture sector.

Tech innovations should enrich the total customer experience

Opinion article

By Dong Won Lee

Mr. Lee is LG Regional Managing Director for East Africa

New technologies like cloud computing, artificial intelligence (AI), mobility and the Internet of Things (IoT) are now ingrained in our lives making it imperative for companies to either stay ahead of the curve or risk missing out on the massive potential to transform their customer experiences (CX).

Basically, CX refers to all the activities an organization engages in to maximize superior experiences and value for customers. In this era of highly-engaged, digitally conscious customers, businesses can no longer ignore the fundamental reality that consumers are now more tech-savvy and are making conscious decisions on how technology fits into their daily life experiences and lifestyles.

So, rather than focus on specific touchpoints or transactions, businesses should devote more of their energies to delivering what is now known as the “total customer experience” which is essentially the positive impact a brand has throughout the consumer journey from the time of purchasing a product to the end of its useful life.

This end-to-end approach is indispensable in achieving higher levels of customer satisfaction and retention. But to achieve a deep and optimal customer experience, organizations must see things from the customer’s perspective, not focus only on their goals around innovation.

Nowadays, consumers have become sophisticated and know what a product should do for them as opposed to what the manufacturer wants the product to do for them. This entails going beyond the four components of CX – brand, product, price, and service.

In this era of rapid digital innovation, technology should really be about empowering customers to do things differently and achieve more out of life. The most important touchpoint is in meeting the customer’s needs at a given moment in time.

Customer-centric innovation should yield rich personal experiences in addition to automation. Embedding memorable experiences for the user must start with understanding customers more in order to craft more compelling digital value propositions by balancing the manufacturer’s digital ambitions and the customer’s daily experiences.

Many companies in the consumer lifestyle space, including LG Electronics, are transitioning into smart life solutions powered by an innovation model focused on deeper customer engagement. This bold vision is anchored on a commitment to innovation and quality that delivers convenience, efficiency and superior performance.

Smart innovations can radically transform even the most mundane of daily experiences like washing dishes and clothes. Today, we have dishwashing machines that clean utensils with a single wash thus eliminating the need for pre-washing. They come with inbuilt technology that ensures superior cleaning performance by removing stubborn stains while adjustable racks and customizable storage options make it easy to accommodate various dish sizes and shapes.

Such smart functionalities are designed to provide unparalleled convenience, time savings and cleanliness. More importantly, they simplify customers’ lives and free up valuable time to engage in other beneficial activities. Also, there are laundry machines that minimize wrinkles and preserve the quality of garments without using too much water or electricity thus averting skyrocketing bills.

Cutting-edge consumer appliances like these that have exceptional performance and energy efficiency not only save time and money, but also enable individuals and families to lead healthier, happier, and more fulfilling lives.

AI and IoT in particular are powering intuitive home appliances that allow people to seamlessly plan every facet of their daily schedule, from work and house chores to entertainment, cooking, and socializing with friends and family, without feeling drained at the end of the day.

In short, smart life solutions are about connecting and expanding consumers’ diverse experiences with the ultimate goal of transforming into a brand that warms hearts and puts smiles on faces.

Smart innovation is only an inflection point in the journey to achieving the vision of creating a better life for customers through cutting-edge technology and exceptional user experiences.

N

Industry-led growth strategies require State backing to succeed

Opinion Editorial

By Rajul Malde is Commercial Director, Pwani Oil Products Limited.



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.

To make 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, and which if applied locally, would significantly increase manufacturing share of GDP but also help the sector recover into a trajectory of sustainable growth.

The first is optimization of industrial processes using innovative technologies like Artificial Intelligence to create ‘intelligent factories’ of the future. Here, we are talking of not just 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. 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 harbor 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 efficiencies to counter the high cost of production.

The second mega-trend is re-skilling and upskilling the local industrial workforce with new technical and knowledge capabilities for the fast-changing global industrial workplace. To work with new technology, workers need digital among other skills as a basic labor 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. 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.