December 30, 2010
Jambo from Nairobi Kenya!
I’m so energized. I’ve been in East Africa for the past three days visiting tech entrepreneurs and tech investors.
While I spend about 95% of my working energy focusing on building iContact into a high-growth purpose-driven business, I like to take a couple weeks each year to travel and explore what’s going on with tech companies in other parts of the world.
This week I’m in Uganda and Kenya to find investment opportunities for the Humanity Fund, a personal investment fund I have for investing in African and American tech companies.
Why Invest in Africa?
There is so much economic opportunity in Africa, support for IT investment, and entrepreneurial energy. There’s an opportunity to make a lot of money investing in great companies while creating lots of jobs and doing a lot of good at the same time.
Africa is the least developed continent in the world. There are 1.03 billion people in Africa. Of this 1 billion (source) 65% of Africans live on under $2 per day (source) and 59% of African households do not have electricity (source), and the number increases to 69% if you only look at Sub-Saharan Africa.
But Africa is no longer about famine, poverty, and war. That was the Africa of the 20th century. The 21st century Africa is about opportunity, technology, and entrepreneurship.
You may read about Sudan, Somalia, Zimbabwe, Eastern Congo, and the Ivory Coast in the New York Times and hear about these countries on the nightly news. But these are only five of the 54 countries in Africa.
The real, untold, narrative of Africa is what’s happening in the other 49 countries. Tremendous economic growth, investment, and rapidly rising living standards. What happened in South East Asia from 1950-2000 (rapid growth and poverty reduction) is now happening in Africa from 2000-2050. Most of the world just hasn’t realized it yet.
Why Invest in East Africa?
Here in East Africa (Kenya, Rwanda, Ethiopia, Uganda, and Tanzania) the GDP has grown at an average annual rate of 7.6% the last four years compared to just 0.5% for the USA. Africa will be the economic lion of the 21st century as McKinsey proclaimed in their July Report, “Lions on the Move: The Progress and Potential of African Economies.”
Take a look at these average annual GDP growth rates for 2006-2009 from the World Bank Development Indicators GDP database.
- Uganda: 8.75%
- Rwanda: 7.925%
- Kenya: 4.375%
- Ethiopia: 10.45%
- Tanzania: 6.675%
- USA: 0.5%
Uganda was the first country I came to in Africa back in 2008 and so I decided to start investing here in East Africa and expand later. I hope someday to run a fund making investments in high-growth socially responsible companies all over the developing world.
Investing As a Way of Making a Positive Impact
This is my third time in East Africa. When I came for the first time in 2008, I held the view that the way to best make positive change was to give money away to NGOs and non-profits.
I come now with the perspective that it takes all three sectors of society (government, non-profits, and for-profits) working effectively to create sustainable economic growth and that the private sector has a huge power to make positive change in the world.
The best way I believe I can contribute to positive change is to help high-growth companies that are creating jobs expand and create more jobs. At the end of the day, the cause of poverty is a lack of jobs and productive capital. Low education, low health care, and low nutrition are the symptoms of poverty, not the causes. If you increase someone’s income they can afford better education, health care, and food for their family.
So now, I believe the best way I can use my experience and resources to make an impact in reducing extreme poverty is to invest in high-growth companies that are creating jobs in developing world.
What I’m best at is figuring out how to grow technology and internet companies. Over the next two years I hope to invest in about ten more privately owned high growth African tech companies as part of dipping my feet into the water and beginning to create a model for eventually building a private equity fund some years down the road.
I hope to be able to eventually show that it is very possible to build a microequity investment firm that gets above market returns investing in high growth socially responsible companies in the developing world.
The field of impact investing is developing rapidly and I’m glad to slowly be learning about it. To learn more check out this Impact Investing Primer from the Rockefeller Foundation and this one from the Federal Reserve Bank of San Francisco.
Existing VC Funds in Africa
In my time here and in talking to people at the Skoll World Forum in April I’ve come across the following funds that are actively making venture capital investments in tech companies in Africa.
- InReturn Capital
- BusinessPartners Kenya
- TBL Mirror Fund
- eVA Fund
- Flow Equity
- FirstLight Ventures
- Humanity Fund
- Grassroots Business Fund (non-profit fund)
- Acumen Fund (non-profit fund)
- RootCapital (non-profit fund)
A more extensive list can be found on the African Venture Capital Association (AVCA) web site. Other resources include the VC4Africa and BiD Network
How You Can Invest in Africa
If you want to invest in private African companies, then you could contact the above VC funds and express interest in investing as a limited partner in their next fund. They will likely require you to be an accredited investor and be able to invest $100,000 and up. You can also find private companies yourself and invest in them directly or join an angel network that invests in African start-ups like Toniic.
If you want to dip your toes into the water of investing in African companies without putting tens or hundreds of thousands of dollars at risk, you can invest directly into publicly traded African companies. There are even Exchange Traded Funds (ETFs) that allow you to get index-fund like exposure to African markets. You can invest as little as $75 in these funds through your broker or your TD Ameritrade, E*Trade, or Scottrade account and participate in the growth of the African economy.
You may want to check out:
- AFK – The Market Vectors Africa Index ETF seeks to replicate the performance of the Dow Jones Africa Titans 50 Index. The fund represents a broad range of sectors and African countries, including exposure to some less traditional, frontier markets. Up 23% in 2010.
- GAF – SPDR S&P Emerging Middle East & Africa ETF. Seeks to closely match the returns and characteristics of the total return performance of the S&P/Citigroup BMI Middle East & Africa Index. Up 22% in 2010.
- EZA – South African ETF, up 29% in 2010.
For proper disclosure, as of this writing I do not own any of these ETFs but might in the future. I am definitely not a qualified securities advisor in any way and past performance is not necessarily indicative of future performance.
Thanks for reading. I hope you enjoyed this post! Please share and comment.
Next, I’ll be posting about the entrepreneurs I’ve met in my first three days here in Africa…
- Ryan, Nairobi, 30.12.10
July 10, 2009
July 5th, 12pm – I’m looking out the Virgin Atlantic airplane window at Mt. Kenya as we end our twelve day trip to Kenya and Uganda. We’ve begun the twenty-eight hour journey home. East Africa is a beautiful region with substantial economic opportunity, and very worthy of a visit. This was my second trip to Uganda, but first to Kenya.
What Drew Us In
We went to learn. We went to visit some of the non-profits The Humanity Campaign has worked with in the past and those we are considering supporting in the future. We came back changed permanently having seen the juxtaposition of the beautiful rising Africa against the constant suffering of unlistened to and forgotten millions of people just like you and I. In the developing world, 2.6 billion people live under $2 per day (PPP adjusted) according to the World Bank and 49,300 people die each and every day needlessly from preventable disease and starvation according to the WHO.
Some of The Stories That Sear Themselves Into Your Memory
For just a second, imagine 139 girls from your local elementary school have been kidnapped by an armed rebel group and taken to a jungle 400 miles away. One hundred and nine of them are negotiated to be returned but 30 of them stay and are raped, abused, and are forced to be sex slaves for as long as thirteen years. Six of these thirty girls are killed attempting to escape. Imagine hiding in a snake-infested ceiling drop at your high school to avoid being kidnapped by the LRA. Imagine being 17 and living in a slum in Africa with over 1 million residents. Both your parents died of AIDS, then your grandfather was killed, then your pastor who took you in abused you. Now you’re on your own, struggling everyday to survive. These are just some of the life altering stories I’ve heard over the last twelve days.
Day By Day, What We Did
Bob Phoenix, Jess Shorland, and I left the iContact parking lot at 4:30pm on Wednesday June 24. We drove over to Raleigh-Durham International Airport for our flight to London. We arrived in Heathrow Airport on Thursday morning, took the Heathrow Express to Paddington, took the Underground to Waterloo, and were on the London Eye by 10:30am in good tourist form. In our twelve hour layover in London we rode the Eye, took photos on the lions at Trafalgar Square, ate Bangers and Mash at The Clarence, saw the changing of the guard at Buckingham, and visited the London office of Credit Suisse in Canary Wharf to visit some of Bob’s co-workers.
We departed from Heathrow that Thursday night and arrived the next morning in Nairobi. After filling out our Kenya arrival cards and swine flu papers, we made it through immigration in about an hour. Three $25 Kenyan Visas later, we picked up our luggage at baggage claim and excitedly met Mary Muhara from Africa Rising at international arrivals. We had checked into the Bush House and Camp in the South C district, which had a reasonable rate of 4600 Kenyan Shillings for a double room with an en suite bathroom (and hot showers). We left our bags and proceeded with Mary to begin what we we really there for–to visit the non-profits we were working with and learn as much as we could about extreme poverty, hunger, basic healthcare, and conflict resolution.
We visited Nairobi, Kampala, Lira, Gulu, and Mityana over the twelve days. We were there to visit the organizations that The Humanity Campaign has contributed to in the past and to scope out new organizations to invest in the the future. We were also there to learn–to venture another foot into the water of exploring what it will actually take to end extreme poverty and hunger in our lifetime. Jess’ focus was to learn about conflict resolution.
During the trip we visited nineteen social entrepreneurial organizations all told (some non-profit, some for-profit) in Kenya and Uganda. We visited seven schools, four community non-profits, three local businesses who had received microloans, two microlending institutions, one hospital, one clinic, and one technology incubator.
Our itinerary was as follows:
Day One – Fly from Raleigh to London
Day Two – In London, Fly from London to Nairobi
Day Three, Nairobi – Africa Rising, TULIP
Day Four, Nairobi – Carolina for Kibera, Trash Clean Up, Soccer Tournament Fun Day
Day Five, Nairobi – Fly to Entebbe Uganda, Car ride to Kampala to home of Louis Ntale
Day Six, Kampala, Lira, Gulu- Concerned Parents Association, Community Microlending to Young Mothers Program
Day Seven, Gulu – Invisible Children Uganda / St. Joseph’s High School, Gulu High School, MEND
Day Eight, Kampala – Bus from Gulu to Kampala, Appfrica meeting in Kampala
Day Nine, Mityana – Mityana Hospital, Mityana Secondary School, Affinet, Naama Millennium Primary School, Santa Maria Medical Clinic
Day Ten, Kampala – Faula Uganda / Opportunity International
Day Eleven, Entebbe – Bob and Ryan Flight from Entebbe to Nairobi, Jess gets picked up by Juma to go to WOMEDA in Karagwe, Tanzania
Day Twelve – Fly from Nairobi to London to New York to Raleigh
Where We Spent Our Time
Here is a report on each of the organizations we visited with while in Uganda and Kenya the past twelve days.
Africa Rising is a non-profit organization based in Durham, North Carolina that currently supports organizations in Tanzania, Kenya, and Uganda. The organization retains a representative in East Africa named Mary Muhara, a Kenyan residing in Nairobi. Mary’s job is to vet potential non-profit organizations for the group to contribute to and to follow-up with those currently in the Africa Rising network. Mary was very kind to take us around Nairobi on our first day to show us TULIP and a Beacon of Hope store.
TULIP GIRLS CENTRE
The first organization we visited with Mary was TULIP Girls Centre. TULIP is an organization that Africa Rising supports today. TULIP was founded by Mary Munyi. Mary started by taking in five disadvantaged girls from the community around here. Today, TULIP is a private school for sixty disadvantaged girls aged 13 to 16 (form 2, 3, and 4) located just outside of the Korogocho slum, the second largest slum in Nairobi after Kibera and the most dangerous.
We met with Nicera Muriithi the Program Manager. Nicera explained that their operating budget was $30,000 per year. We learned that their teachers were paid approximately $125 per month.
When we asked why we should support a private school in the area Nicera explained that the government had not built a primary school in the area because it was a poor area and that there was no public school nearby. Nicera explained that her biggest need was to get more land so she could expand the school. She indicated it would cost $25,000 to purchase the one acre of land. She also requested textbooks and a computer so she can train the students in typing.
We had a chance to speak with the students. When we asked what they wanted to be in the future, they named lawyer, doctor, preacher, and politician. The reality was however that all these professions required a college degree and that these girls would not be able to afford to attend university.
CAROLINA FOR KIBERA
On Sunday June 28 at 8am we showed up at the office of Carolina for Kibera (CFK). CFK has a girls center, clinic, waster management program, and youth soccer program.CFK was founded in 2001 by Rye Barcott, a friend of mine and fellow Tar Heel. Rye was a U.S. Marine Officer for five years who fought in Afghanistan and Iraq. Rye just finished a MBA at Harvard Business School and a MPA at the Kennedy School of Government.
Kibera is in Nairobi and with 1 million residents, it is the largest slum in Africa. That day in Kibera, Jess, Bob and I walked about 30 minutes to the soccer field with a couple interns from Duke and UNC and some visiting Muzungus (white people) from Vancouver. We grabbed rakes and helped remove trash from the street and sewers in Kibera as part of CFK’s ‘fun day’ in which kids did a couple hours of community service cleaning up the area and then participated in a soccer tournament.
It was an eye opening and life altering experience walking through the dirt paths of Kibera and raking clothes, water bottles, shoes, fruit, corn, and litter out of open drainage ditches filled with brown water and human excrement as part of a team of perhaps 200 that went out in the community to clean up. I had seen rural poverty in Africa before, but this urban poverty was different. The community seemed vibrant, entrepreneurial, alive, musical. Dozens of stray dogs and chickens roamed. The small one-room houses in which 6-8 slept were made of mud with a tin roof. Yet we knew we wouldn’t be safe by ourselves, especially after dark. The lack of sanitation was very visible.
Here’s an excerpt from Wikipedia on Kibera, “Kibera is heavily polluted by soot, dust, and other wastes. Open sewage routes, in addition to the common use of Flying toilets, also contribute to contamination of the slum with human and animal feces. The combination of poor nutrition and lack of sanitation accounts for many illnesses. Not only are death by disease and conflict common inside this slum, but it is estimated that 1/5 of the 2.2 million Kenyans living with HIV live in Kibera.”
Kibera was the center of many of the riots and killing that occurred following the contested Kenyan election in December 2007.
At 11:30 that morning we had to leave the soccer field and walk the 30 minutes back to the CFK office. We couldn’t find anyone who was willing to walk with us and were told we should not walk alone due to safety (and we didn’t remember the route). We finally found a wonderful 17 year old young lady to show us the way back. She was the 17 I spoke of earlier in this post whose parents had died of AIDS. She moved in with her grandfather but he shortly passed. She then moved in with her pastor, but he abused her. She was effectively alone struggling to survive and all she wanted was a small place of her own. Stories like this were all too commonly heard.
It was a life changing experience to spend four hours in Kibera, and I know I’ll return. I have a very high level of respect for everyone at Carolina for Kibera. I’d love to work to start a similar program in Korogocho, a slightly smaller but more dangerous slum in Nairobi.
Here’s a video of me dancing with the children in Kibera before a Carolina for Kibera soccer match:
CONCERNED PARENTS ASSOCIATION
After taking the Post Uganda bus to the Kamdini depot, we were picked up by Richard from Concerned Parents Association, another organization that Africa Rising currently contributes to. We met with Anthony, the Interim Executive Director of CPA. CPA started in 1996 after 139 girls aged six and seven were abducted from a local school by the LRA. Of the 139 that were taken, 109 were returned quickly in negotiations, but 30 remained. Since 1996, 24 of the 30 remaining abductee girls have returns. The other six were killed while attempting to escape. The girls today are all 19 or 20 years old. In March 2009, the last surviving girl returned. To give some perspective, in order to escape successfully each girl had to walk for one month, often alone, in the jungle of Northwest Uganda or the Garamba Forest.CPA helps these returnee abductees with counseling. Almost all of the 24 returnees girls brought with them babies. They had been made wives or sex slaves of the LRA while the bush (forest). These babies were called ‘Bush Babies’ by the local community, and often discriminated against. Today, the LRA still has over 3,000 women and child that they have abducted. July 2006 was the last abduction in Uganda. However, today the LRA is abducting children in the Congo and most recently massacred 600 over the Christmas 2008 holiday in the DRC. The people in Lira still fear the LRA returning to Acholiland (Northern Uganda) according to Anthony.
Today the Concerned Parents Association is focused on improving children’s rights and fighting/reporting rape and domestic violence in their tribe of Lango around Lira, a city of 62,000 people. They have sixty employees and work with over sixty parent groups at schools in the area. They amazingly operate on an annual budget of $350,000 per year. They currently receive funding from Save The Children Uganda, The Mennonite Central Church, the Christian Aid, UNICEF, and the European Union, –although the EU funding is likely to run out in October. They do and can give out condoms in their area as part of their reproductive health and family planning efforts even though they are funded by some Christian organizations. They have four offices including the main headquarters in Lira and branches in Gulu, Kitgum, and Oyam.
Anthony noted that while most of the Internally Displaced Persons (IDP) camps have dissipated in Lira and Gulu, there are still people in IDP camps in Kitgum, due to concern about the return of the LRA and an especially ruthless Ugandan tribe of cattle-raiders, the Karamajong.
We asked why Anthony chose to be involved in CPA. Anthony himself was almost abducted by the LRA. He told us that the LRA once attacked his school in 1995 when he was 17. In order to avoid being abducted, he hid in a snake infested ceiling drop.
Anthony indicated that CPA’s needed include additional assistance with report writing and documenting in English and funding.
LIRA GIRL MOTHERS MICROFINANCE PROGRAM
After visiting with Anthony at the Concerned Parents Association, we were taken to visit one of the programs that CPA supports, the Lira Girl Mothers Microfinance Program (LGMMP). We met with two advisers and eleven young single mothers, who seemed to range in age from about 15 to about 24. We met with them sitting in blue plastic chairs under a tree outside of a primary school about 2km away from the center of Lira.One of the things that struck me immediately was how softly these women spoke. One could literally not hear them from eight feet away. Even their advisers and our female guide from CPA spoke extremely softly. I found it challenging to decide whether to ask them to speak louder and risk offending them. Eventually I did. The women mostly spoke Luo and not English, so our guide translated for us.
The LGMMP had twenty-eight girl mothers involved in its programming and eight advisors. They sang a song for us at the beginning with the lyrics, ‘we will never forget you, please don’t forget us.’ They were involved in five different types of microbusinesses that they had been trained to start. Initially they were given $75 each to start their businesses (as a grant not a loan). They used $17 of this to purchase ‘trading licenses’ so they could start their business legally, so they were left with $58 to begin.
They had started a grinding business, a distillery, a sewing company, a charcoal company, and a bakery. They indicated their biggest challenges were:
- Transporting of their goods to the market
- The expense of trading licenses ($17)
- The fluctuating price of food
- Finding space for their businesses and paying rent
- Inability to sell their whole product before it goes stale
As an example of their issue with transport costs, the mother running the charcoal business would pay 10,000 UGX ( ~$5) for her charcoal bushels at wholesale, then pay 4500 UGX (~$2.25) and then be able to sell her charcoal 15,000 to 20,000 UGX ($$7.50 to $10). On a bad day she would work all day to make $0.25. On a good day she might make $2.50, depending on the retail price she could negotiate.
When they had the opportunity to ask us questions, their first question was whether we would be able to help financially support them so they could expand the program to other young mothers in the area. They indicated their morale was low as they had held meetings with potential donors before but hadn’t yet received any outside support. They also requested assistance in finishing their formal education.
Their biggest business needs was capital–particularly a grinding machine ($35) and a sewing machine ($75). In the four months the program had been operational, the twenty-eight women had successfully been able to save 800,000 UGX ($200).
I found myself struggling whether to attempt to give the ladies helpful business advice based on my experience (group supplies together in one shipment to reduce transport costs, use savings to reinvest in capital now rather than later, etc.). With Bob as an investment banker from Credit Suisse and me an entrepreneur we naturally wanted to. Yet at the same time we recognized we knew so little about their businesses and environment.
We ended up choosing to use questions to inquire why they were or weren’t doing certain things. They had good answers. We asked why they didn’t use these savings to invest in the capital necessary to reduce their renting costs and earn a higher profit. They responded that they had committed to saving for one year or until they got to 5,000,000 UGX ($2,500), whichever was first. Once they reached this mark they would consider whether to use their savings to allow other mothers into the program and/or invest in necessary machinery.
Overall the ninety minute meeting gave us a fairly good understanding of the business and personal challenges these women faced and left with an appreciation of the work that CPA was doing and an even greater respect for organizations like Opportunity International and FAULA who follow a slightly different model of providing small loans instead of small grants. It is truly amazing what $75 can do, whether as a loan or grant. It can give a woman her freedom.
INVISIBLE CHILDREN UGANDA
I first heard about Invisible Children in the summer of 2008 while visiting Uganda. I learned much more about IC while meeting their co-founder Bobby Bailey and CEO Ben Keesey at The Summit Series event in Aspen in April. Invisible Children began in 2003 as a documentary after three young filmmakers from Southern California visited Gulu. They rather courageously filmed and released a documentary about what was happening in Gulu in 2003 (children being abducted, attacks by the LRA, children being forced to walk miles every night to find a safe place to sleep).Today, the Gulu region and the Acholiland region of Northern Uganda is peaceful and relatively safe (and very worth visiting!). However, Joseph Kony and the LRA have moved on to the Garamba Forest in Northeast Democratic Republic of Congo (DRC) and continue their abductions and raids into Sudan, East Congo, and the Central African Republic. Since 2003, Invisible Children has produced six additional short videos telling the challenging stories of individuals there around Gulu. In 2005 IC registered as a U.S. non-profit organization and in 2007 they registered as an NGO in Uganda. They work primarily in Gulu, Pader, Amulu, and a bit in Kitgum.
In the United States, Invisible Children raises money, mostly through high school and college students, to fund both their on the ground efforts in Uganda and to fund legislative lobbying events and rallies (to encourage the U.S. Congress and State Department to work with Uganda, the DRC, and the ICC to pursue and capture Kony and stop his abductions and mass killings.
In 2008, Invisible Children had an overall annual budget of $7M, of which approximately $2M went to fund projects on the ground in Northern Uganda around Gulu.
Jess, Bob, and I arrived at the Gulu office of Invisible Children Uganda at 9am on June 30th. We met first with Erika who worked in communications. Erika was extremely nice and helpful and share a lot with us about IC Uganda.
In Uganda, Invisible Children has three on the ground programs. These are
1. Economic Development Iniatives (EDIs) including:
- Bracelet Making – IC started out their EDI programs by hiring 182 bracelet makers to produce bracelets that would be included in the Invisible Children DVD packs. They now have a surplus of bracelets, so have transitioned this individuals to a training program on income generation.
- Savings & Investment Program – These 182 individuals are now part of a savings and investment program which provides a six to eight month curriculum on income generation
- MEND – A new for-profit arm of Invisible Children that produces messenger bags and purses with the brand MEND from a nice factory near Gulu that we visited under the director of a talented and energetic designer named Marie. MEND started with 10 women and now has 13. Almost all of them are former abductees.
- Cotton – A program to provide organic cotton to Bono’s wife’s organization Eden, to help assist people in moving out of the IDP camps and back to their ancestral homelands.
2. Visible Child Scholarship Program (VCSP)
- Secondary Scholarship Program – Provides scholarships to 650 secondary school students in and around Gulu and Pader
- University Scholarship Program – Provides scholarships to 59 university students in Uganda and 1 who earned a full-ride to Boise State University in Idaho
- Mentorship Program – Providing 24 mentors to local students
3. Schools for Schools (S4S) –
- A program through which schools in the United States support a school in Northern Uganda. IC provides assistance to ten schools in the area.
- They work to rehabilitate structures and classrooms, install running water and water tanks, add toilets, and put in computer labs.
- We visited St. Jospeh’s College (A High School), Gulu High Schools, and another primary school which I cannot recall the name of to see the work that Schools for Schools had accomplished.
Meeting with Jolly, Country Director for Invisible Children Uganda
After meeting with Erika outside under a thatched reception area, we went inside to speak with Jolly Okot, the Country Director for Invisible Children Uganda. Jolly indicated that the LRA was abducting children as a human shield. She indicated many in the LRA had been brainwashed to believe that Kony had spiritual powers. Today, she said, the LRA was abducting many more children in the DRC, Central African Republic, and Sudan. Jolly spoke of the political discussions between the DRC and Uganda about allowing Ugandan forces into the Congo to go after Kony. She indicated that Kony was being supported by President Bashir of Sudan, who also has an ICC warrant out for his arrest.
The other major NGOs I saw represented in Gulu were World Vision, Samaritan’s Purse, African Revival, UN, UNICEF, and UNHCR.
Appfrica (on Twitter at @appfrica) is an technology entrepreneurship incubator and custom software development firm run by Jonathan Gosier, an American living permanently in Kampala with clients including Google and the Grammeen Bank. Jonathan currently has 8 programmers. He pays $900 per month for an internet connection of 192 kpbs, equivalent to DSL and about 1/10th the speed of cable broadband we get in the U.S. for $40/month. He spoke to us about the EACOSS, EASSY, SEACOM, and O3B (by Google) initiatives to bring faster broadband access to Africa. Jonathan was a big believer in making change through business. He felt there was a wealth of programming talent (especially with Python, Ruby, Symbian, Java, and C+) but a lack of opportunity in Kampala.
On Thursday July 2 we had the chance to visit Mityana, a town about an hour to the West of Kampala. We visited five organizations that day, the first being the Mityana Hospital.The hospital was built in 1947 and serves the 288,000 people who live in the district and many from surrounding areas. It has 6 doctors, 100 beds and 4 wards: maternity, male, female, and children. It has an HIV/AIDS clinic that serves 4,000 regular patients with the help of Population Services Internatational. It also has an x-ray lab and a dental office.
Funding from the hospital comes from the government, with some additional funds coming from NGOs. According to their Director, their biggest needs are surgical and diagnostic equipment and an ambulance. They have an operating budget of 23,000,000 UGX per month ($11,500).
MITYANA SECONDARY SCHOOL
Mityana Secondary School is one of two high schools that iContact and The Humanity Campaign have started a scholarship program for. I visited the school for the second time on this trip and had a chance to speak to their entrepreneurship class. Their principal indicated their biggest challenges are parents paying school fees, orphan students, and transportation.They indicated building additional dorms for some of the students would be very helpful to the children without parents and those for whom the school is a many miles away. One of their biggest needs is getting internet access to their computer lab, which is currently outside of their budget.
The school has 1,350 students and 70 staff members. The government pays the teacher’s salaries and parents pay school fees, which are 468,000 UGX ($234) per year normally and 900,000 UGX ($450) per year for students who live at the school.
AFFINET stands for the African Friends in Need Network. It is the second school that the iContact/Humanity Campaign scholarship program will be benefiting. It is a vocational school in Mityana, Uganda. It was started in 2000. It has a strong social justice mission. It provides classes on sewing, fashion design, carpentry, and home economics. It has 111 students and focuses its efforts on girls who have been left behind. It has had 195 graduates so far since the first class graduated in 2004.Over lunch with the Bishop, we learned that AFFINET would like to start classes in bricklaying, IT, and livestock. They need computers, sewing machines, and funds to complete their bathroom and ceiling in the girls dorms.
NAAMA MILLENNIUM PRIMARY SCHOOL
Namma Millennium Primary School was founded in 2000 by Dr. Christopher Kigongo, a Ugandan who now works at Duke University. I’ve worked with Christopher over the past year to set up a scholarship program for students at the school that is providing funds for students who attend Naama Millennium Primary School in Mityana, Uganda to continue on to secondary school at either AFFINET or Mityana Secondary School.I first visited Naama in 2008 and fell in love with the children. Last year, they danced and drummed. This year, students from Duke had developed a play on nutrition and hygiene that the students performed for us, followed by the amazing popping and locking hip hop dancing of a five year old boy (followed by Bob, Jess, and I doing a dance for them).
SANTA MARIA MEDICAL CLINIC
Our final stop in Mityana was the Santa Maria Medical Clinic. The Clinic is a for-profit private business, started and run by Dr. Paul Mugambe. The clinic today sees 60 patients per day. They provide more available and better care than Mityana Hospital according to Dr. Mugambe. They most commonly treat malaria, respiratory issues, diarrheah, and HIV/AIDS. They have 30 beds today.The clinic’s biggest challenges are people who need care but cannot afford it and thus do not pay their bills, high taxes, and a lack of surgical room. The clinic charges 60,000 UGX ($30) for a normal baby delivery and 300,000 UGX ($150) for a c-section delivery. Dr. Mugambe would like to expand the clinic but is currently renting so cannot make additions to the property. He is looking to get a loan of 75,000,000 UGX ($37,500) to purchase the property, but loan interest rates are currently too high at 20%.
FAULA / OPPORTUNITY INTERNATIONAL
On our final day in Kampala on July 3 we visited with FAULA and Opportunity International in Kampala. Both are microfinance organizations that are working together in Uganda. Jess, Bob, and I had the chance to meet with the CEO of Opportunity International Uganda.They have 200 staff members in the country, nine branches, and a $6 million microloan portfolio. Their average client takes out a loan of $150 and makes repayments weekly. They have a 2.4% default rate. They work through a group system in which a group of at least ten takes out a loan together (the peer pressure and accountability provides higher repayment rates). Once an individual pays back their group loan they can obtain a larger individual loan.
Opportunity prices their loans at 3% per month interest (compounding to be equivalent to 43.5% per year). While this is high, they indicated that the return from the use of their capital that is otherwise unavailable is much higher. They’ve developed an impressive, sustainable model.
We visited three of Opportunity International’s clients in Kampala, the owners of a banana stand, a metalworking shop, and a small conveyance store.
Opportunity International also has a partnership with Compassion International in Uganda.
After Bob and I left to go back home, Jess was picked up by Juma Masisi who runs WOMEDA in Karagwe, Tanzania. Jess has been at WOMEDA for a few days now. She is studying conflict resolution and women’s rights there.WOMEDA stands for WOMen Emancipation and Development Agency. According to their web site, WOMEDA “promotes the status of marginalized groups by creating and strengthening equal opportunities for women, men, and children through the provision of socioeconomic, legal, and human rights activities in order to attain sustainable development.”
We are hoping that Mary Muhara from Africa Rising will have a chance to visit WOMEDA in the coming days and consider supporting the organization.
Overall we very much enjoyed our time in Kenya and Uganda. I wanted to especially thank Louis Ntale and Rebbecca Ntale who allowed us to stay at their house for three nights and their son Kenneth Ntale for driving us in Uganda. Thanks to all for reading. Comments are very welcome!
June 23, 2009
- Visit the non-profits that The Humanity Campaign and iContact have provided funds to in order to see and document how they are using the funds and to learn about their operations and needs;
- Find additional qualified non-profits for The Humanity Campaign to invest in;
- Find companies with unique innovative appropriate technologies that address local social needs and for-profit companies with a social mission to invest in;
- Learn as much as we can about conflict resolution, IDP camps, food and water distribution, rural health care provision, and rural primary and secondary education; and
- Dance, dance, and dance some more like Matt from Where The Hell is Matt!
On our first day in Nairobi we’ll be meeting with Amon Anderson from the Acumen Fund and Mary Muhara from Africa Rising. Amon is a friend of mine from back when we went to UNC together and from when he was in charge of the entrepreneurship minor at UNC. Mary is the in-country local representative for Africa Rising who vets the non-profits that Africa Rising contributes to. Mary will be taking us to visit TULIP Nairobi a program supported by AR. TULIP “strives to deliver hope for girls subjected to poverty and its vices: teenage pregnancies, HIV/AIDS, drugs, crime, and prostitution.”
On day two in Nairobi we’ll be visiting with Carolina for Kibera. CFK works in Kibera, a slum in North Nairobi to “promote youth leadership and ethnic and gender cooperation in Kibera through sports, young women’s empowerment, and community development.” CFK was started in 2001 by a UNC students Kim Chapman and Rye Barcott. Rye has since completed five years of service as an officer in the Marines and completed a MBA/MPA joint degree from HBS and the Kennedy School of Government at Harvard, which is what I’d love to be doing in a few years. They operate a soccer league, medical clinic (Tabitha Clinic), and a reproductive health and women’s rights center (Binti Pamoja). I’m so excited to be seeing their operation first hand.
On day three, we’ll be flying from Nairobi’s Jomo Kenyatta Airport to Entebbe, Uganda. We’ll stay the night in Kampala with our friend Louis Ntale, the brother-in-law of Duke’s Christopher Kigongo, and then wake up early to catch the five or six hour Posta Uganda bus from Kampala to Gulu and traverse once again the adventurous roads of rural Uganda.
Upon arriving in Gulu we’ll be meeting up with Andrew Morgan of Invisible Children. Over the past year I have been studying the conflict between the LRA, led by Joseph Kony, and the Ugandan army known as the Ugandan People’s Defence Force and formerly known as the National Resistance Army.
Invisible Children (IC) is working to put an end to the conflict, which has died down considerably in Northern Uganda but spread to the Central African Republic and the Northeast Democratic Republic of Congo, near the Garamba Forest. IC also working to re-integrate and educate former LRA child soldiers in the surrounding region’s Internally Displaced Person’s camps and to lobby the U.S. government to put State Department resources into ending the conflict. I had the chance to spend a couple days with their CEO Ben Keesey and co-founder Bobby Bailey while at The Summit Series trip in Aspen in April. They’ve put out a series of very well done DVD documentaries explaining the conflict and highlighting the stories of particular child soldiers. I’m very excited to see the IC operation while in Gulu.
After a day with IC, we’ll be visiting the Concerned Parents Association, another organization supported by Africa Rising, which mobilises parents of abducted children toward the objectives of:
- Immediate and unconditional release of all abducted children
- Peaceful resolution of the conflicts
- Creation of an awareness of the plight of children in conflict
After three days in Gulu, we’ll head back down to Kampala on July 1st, visit with Opportunity International Kampala and then Jonathan Gozier of Appfrica, and stay the night again with Louis. On Thursday, July 2nd we’ll have one free day and either head to the Kampala Hospital, do a follow-up visit with the the Kyetume health clinic an hour away in Nkokonjeru, or head over to Jinja to see the source of the Nile.
On Friday we’ll head over to Mityana, Uganda to visit the Naama Millennium School and get an update on the scholarship program that iContact and The Humanity Campaign have funded that will be helping students at Naama attend secondary school. We’ll also be visiting a team from Duke and Nourish International. Naama serves 321 students, 113 of which have lost one or both parents. It was a true joy last year visiting Naama and seeing the school children dance!
After visiting Naama we’ll visit the Mityana Secondary School. One of my favorite memories from the visit last June was sitting in on an entrepreneurship class and seeing first hand the drive in the students to excel.
On our final day, Bob and I will head back to Kampala to fly to Nairobi and then back to RDU through Heathrow and JFK to be back in time for work on Monday morning July 6. Jess will continue on and head down to Karagwe, Tanzania to work with Juma Masisi at WOMEDA, a women’s rights organization.
I look forward to blogging about our experiences! Stay tuned.
July 10, 2008
I was in Uganda from June 29-July 6. I was there to visit two non-profit organizations I have been involved with and contributed funds to in the past. It was my first visit to Africa, and definitely will not be my last.
Uganda really is a beautiful country. It has lots of challenges, yet lots of real opportunities. Seeing the extreme poverty that exists there first hand was difficult, yet instructive and very helpful to my understanding of the issue. 89% of Ugandans are currently subsistence farmers, so a great majority of the population lives in rural villages. It was very common to see families of 6 to 8 living in mud and stick one-room shacks with tin or grass roofs with dried dung floors with no running water, toilet, or electricity. The primary school we visited in Mityana in the West had neither windows nor doors and had dirt floors.
Even more difficult is the realization that the difficulty of the living conditions I saw in the rural areas pale in comparison to those in the refugee camps 300 miles to the north in Northern Uganda, centered around Gulu which was the center for the LRA activity, which has significantly calmed since the 90s. I was amazed at the extent to which the children and most adults living in these most difficult conditions maintain such a level of happiness and non-complaint.
It was a bit unnerving to see out front of every bank and gas station an armed security guard with a rifle or shotgun. The traffic is absolutely insane, enhanced by the pavement ending at times. At one point we were passing a car that was passing another truck, and got driven into the shoulder on the other side of the road. That type of experience was common. There are no medians and the highways are all two lanes. There are just three stop lights in Kampala and none elsewhere in the country.
The thousands of Boda Bodas (motorcycles) and Matatus (bus taxis) all over and the pedestrians crossing allover add to the confusion. And not to mention the cows, which are often in the road calmly walking across. Cows and goats tend to be tied up to the side of the roads so they can be used for mowing. Babies run around naked or just wearing shirts, often with no parents in sight, and kids from 3 to 12 wearing bright purple, yellow, green, or blue school uniforms can be seen walking along the side of the roads for miles around 8am and 5pm each day. The kids would often smile and yell out “Muzungu” which means white person when we drove by.
The current Museveni administration has been in power since 1986 and while it seems to be succeeding in providing some basic services, the roads are still very spotty and the electrical grids shut off a few hours per day outside Kampala. Many are calling for him to leave, not because he’s doing a horrible job but because he’s been in power 22 years. They seem to have a good freedom of speech there and an opposition newspaper. People we spoke to were not shy to offer their criticisms. Many people were speaking about Mugabe and his visit to the African Union last week and hoping for his ouster.
The economy is growing. The competition between CelTel, Warid, Uganda Telecom, and MTN for cell phone was intense. All the services sell Airtime Credits rather than monthly subscriptions since most Ugandans do not have a fixed postal address nor a credit card. These four companies advertise literally everywhere, including painting in exchange for compensation thousands and thousands of buildings and homes along the side of all the roads.
Uganda now has GPRS service which allowed me to access my Blackberry email without a problem most of the time even in very rural areas.
They also are deploying 3G service in the major cities. I saw a number of iPhones there among lawyers and professionals. The biggest employer in Uganda is interestingly Coca Cola. There are tremendous opportunities to invest in alternative energy production, especially in regards to biomass. Roey and I had a chance to visit Torero Cement, the largest cement factory in Uganda on Friday as he’s working with them to supply biomass so they can reduce their coal usage. The economy remains a cash economy. I did not find a single store or company that accepted credit cards outside of the airport.
We stayed with an investment banker who runs Daro Capital on Friday night in Kampala. He help a get together of a group of technology execs and professionals on Tuesday night, including a gentleman who is starting an SMS marketing service. I spoke to a number of people to get a sense of the ripeness for email marketing. Rough statistics, but it seems right now about 25pc of Ugandans have email addresses, though most check them via Internet Cafes. Broadband access is only available via Satellite at a cost of USD$1000 per month, so even the professional class and wealthy have only dial up or GPRS access. A T1 is being installed in Uganda in 2009 after which access will go substantially up.
We visited Entebbe and Kampala on Day 1, Mityana on Day 2, Mbale on Day 3 and 4, and Torrero on Day 5, and Mukono on Day 6. We also drove though Jinja and saw the source of the Nile river.
In Mityana, we visited Nourish International Students working at Naama Millennium School, a school funded by Dr. Christopher Kigongo, who now lives in Durham most of the year and was the former Director of Health Education for Uganda. In Mbale, we visited the Foundation for the Development of Needy Communities (FDNC) which has a vocational school and special needs school founded by Samuel Watulatsu, who presented at a Entrepreneur & Social Entrepreneur Meetup at our house in Chapel Hill last October.
On the way there I spent a day layover in Dubai. Dubai is one of the 7 emirates in the United Arab Emirates, so it’s the size of a county and has 6-7 cities in it, that have names like “Internet City, Media City, and Sports City.” The amount of construction and cranes there was immense. The Emirate boasts an indoor skiing area, and man-made islands in the shape of a palm tree and one in the share of the world. They have built the largest building in the world, the Burj Dubai, shown in picture 4. It is still being finished. When it is done next year it will be 166 floors and 2100 feet tall.
Bottom line, the experience has caused me to be even more dedicated toward spending the rest of my life working to increase access to education, healthcare, food, and technology and working toward ending warfare and ensuring sustainability. I look forward to going back again soon.