by Strive Masiyiwa chairman and founder of Econet

As an entrepreneur my philosophy is about reaching out to meet the needs of people. Asking, what do people need and how can we respond to those needs? With great urgency, people need energy in Africa. We at Econet have set out on a journey of innovation and experimentation to meet those energy needs.

Our journey thus far has led us to consider the following.

The old rules don’t apply anymore. The new economy, that exists today, requires a new energy economy and therefore a new approach to providing that energy. So what does this new economy look like? The new economy in Africa is more global (Tencent is the most valuable company in Africa, and it's from China). The new economy is more mobile (due to the rise of apps such as M-PESA and Ecocash. In Kenya for example more than 60% of people use their cell phones for financial transactions[1]). And the new economy is about a new type of client (with people looking to bundle their energy services with other services) and a new type of marketplace where roles will change (where ones wireless provider can also provide clean energy and a smart building).

Out of crisis comes opportunity. Africa faces many challenges, and it is not always unified in those challenges. Econet has had much experience in providing solutions to those challenges. Ecocash was created in Burundi, after the civil war, to find a way for global money to find its way to those that needed it most. When we decided to expand this business opportunity in Zimbabwe we realized that the poor no longer had access to small denominations of money. Ecocash could be the solution. Ecocash mobile money transfer service is currently used by over 6.8 million Zimbabweans with over $23 billion worth of transfers transacted over the past five years.

Business needs to be principled. The Pope told all of us gathered at the Vatican: “Seek ever more creative ways to transform our institutions and economic structures so that they may be able to respond to the needs of our day and be in service of the human person, especially those marginalized and discarded.” We need to remember that we are not just selling electrons, but meeting the needs of our people.

With all of this in mind, we created Distributed Power Africa (DPA). Africa has an energy crisis, people’s needs are not being met, and we have a duty to solve the problem. Our solution will look to use our pan-African history as a trusted provider of wireless, fiber optic and money services to provide energy to the mid-sized market that powers the African economy – schools, clinics, businesses and others struggling to serve their communities. By providing a full service – installation, maintenance and ownership – we will help to provide a much needed source of reliable energy, at a stable and competitive price for at least ten years. Furthermore, due to the strength of our business we will cover the upfront cost of the hardware and software so that there are no upfront costs, or risk, for the customer. This innovation will make energy more accessible for all.

Due to innovative energy monitoring systems, DPA will be able to go further and ensure that efficiency is built into the system by providing energy efficiency technologies. This will help to avoid energy waste, and manage the costs for the consumer. We will be able to work with our existing clients and we will initially do this in ten African countries.

But we cannot do it alone. Competition is good, but it has to be bolstered by cooperation. Two-thirds of sub-Saharan African economies are growing faster than the global average, and three African countries are among the world’s top 10 fastest growing economies. These leading economies and their neighbors will be able to build more profitable energy markets if they cooperate across their borders. Innovative energy products and services should be able to move beyond borders to the people that need them and this requires leadership at every level. Econet is therefore looking to Government, regulators and business to partner to ensure that we create a healthy market for innovative energy services across Africa so that we can bring essential life changing services to millions.

[1] http://www.pewglobal.org/2015/04/15/cell-phones-in-africa-communication-lifeline/

30 | WORLD ENERGY FOCUS ANNUAL 2017