We're now 7 billion people. If you're in your fifties, this is the 5th "billion milestone" you're experiencing. Markets Speaking's founders have only been around for the last 3 milestones, but this has still enabled us to witness  the world change dramatically. Comparing with the 80's, our world is all at once more fair, yet less fair; wealthier, yet poorer.

All along, we humans love pretending that we know where our planet's heading. However, who questioned the dollar's position as the world's currency of choice until recently? Now, considering the current state of affairs, who'd still agree that the US "is and always will be a triple-A country"? Predicting successful business ideas seems to be none the easier. Who'd imagine that a Finnish video game in which egg-stealing pigs are destroyed by revenge-seeking birds, would be the #1 downloaded app in 64 countries, driving the company's value up to 1 USD billion in 2011?

Consequently, we can't help but wonder if the next Microsoft, Google, Facebook or Groupon could be African. When even angel investors such as (ex-Dragon) Doug Richard play down the importance of outside funding for start-ups, maybe we should start viewing innovation and motivation as more valuable sucess factors than cash. With growing numbers of African teens acquiring tertiary education and gaining unprecedented access to technology through the recent digital revolution - there are reasons to believe that future tech entrepreneurs will come from cities like Lagos, Accra or Nairobi.

Looking for evidence? At the Meltwater Entrepreneurial School of Technology in Accra, gifted Ghanaians develop own software applications together with international executives and MBA students from top ranking universities. Out of the seven incubator companies, one has already been awarded a Best Business prize in the US - competing with 100 Silicon Valley start-ups (NandiMobile).

Moving across the continent, Kenyan company Pesapal offers a platform for online payments, and has been listed as one of the 20 Hot International Start-ups to watch by US business site Business Insider.

Yet another example is the Ghanaian social network company GSocialize that was founded last year and today has over 20,000 users in over 40 countries worldwide. The company's primary target group is Africa, although users are found in Europe, the Americas and Asia. Integrating more interactive features such as video streaming, conference services and chat rooms has won the network many new followers.

The next population billion mark won't occur for at least another 14 years, years during which we believe that African entrepreneurs will demonstrate that great innovations are exported from rather than imported to the continent.

After a summer blog break, we are back on track and happy to report about an applaudable initiative as a reaction to the famine in Kenya, Ethiopia and Somalia. The "Kenyans for Kenya" initiative was created by the Kenya Red Cross Society and is supported by the Kenya Commercial Bank, Safaricom Foundation and the Media Owners Association. This joint private sector + NGO campaign creates awareness among citizens and companies and simultaneously offers simple means for making donations. What makes the campaign stand out is that it encourages local citizens to make a difference - and refrain from relying on donations from abroad.  Read more about the initiative at the Kenyans4Kenya website and view the NTV video!

Sustainability as an integral part of doing business has become increasingly widespread in the advanced economies. Transparency is generally high, customers demand high ethical standards, the media is keen on reporting on lacking assumption of responsibility, and, perhaps most importantly, the private and public sector have the financial means to plan beyond the next quarter.

While sustainability means one thing to a biologist and another to a CxO, most would agree that it entails behaving in a way that minimises overconsumption of resources and maximises long term benefits for people and planet.

Many would also agree that the countries in greatest need of sustainable business, political, financial or technological solutions are indeed the countries in emerging and developing markets. However, what sometimes is lost in the debate is that these very same countries have the least means to introduce, invest in and implement new practices.

Let us re-examine the conditions common in advanced economies that enable sustainable practices and translate these to African markets. Firstly, transparency is generally low in the private and public sector - not necessarily intentionally, sometimes just due to lacking technology - obviously blocking scrutiny effectively. (Read about other consequences of lacking transparency in our blog post: Beneath the Radar).  With relatively few listed companies, the incentive to share corporate information is low - whether it's financial, operational or strategic. Further, pricing is lacking, leaving room for negotiation and bartering.

Secondly, customers cannot set demands when influence or purchasing power is inadequate. Consumers aren't organised and have few rights. What's worse, in most cases there simply doesn't exist credible sustainable alternatives on the market. Individuals and companies are left to choose between affordable, but socially or environmentally unsustainable products, or few and unaffordable green/fair trade goods. This situation is reflected in a number of sectors, ranging from heavy industries to FMCG.


Thirdly, the media is not uncommonly "sponsored" by the highest bidders or even censored. Last but definitely not least, the bottom line is that without the means, even the best intentions will remain unrealised. This is strongly interlinked with point 2: who's to blame the consumer if he or she cannot afford to buy the product that in the long term is the best option for our planet? Who's to say that a family should not use charcoal for their cooker when there is no alternative for making food or cleaning water? Who's to say that a government-owned construction company should be buying a truck with European emission standards for the same price they can be buying 3 Chinese trucks that are unlikely to pass such standards? Many African cities are expanding rapidly, putting huge pressure on urban housing development and improved infrastructure. On top of this, many governments are struggling with inherited debts. With this in mind, most decision makers in the public and private sectors would opt for 3 trucks for the price of 1 without hesitation. 

There are no simple answers to this issue. Without doubt, sustainability and responsible conduct must become a stronger priority among African leaders. Climate change continues to destroy the livelihoods of rural Africans and poverty is not declining as quickly as the global community had hoped. Meanwhile, leaders in the West must also recognise that what we have is very far from a situation in which a well paid consultant in Stockholm or Chicago can choose to pay an additional $5 for organic cereal.

Africa has passed Western Europe in terms of mobile connections, with 547.5 vs.  523.6 million mobile connections per region. Although the absolute figures provide more of a motivational milestone than a sufficient progress indicator, the growth figures do not fail to support the notion that we are witnessing impressive development. Growth in the African market boasted a near 20% increase between Q4 2009 and Q4 2010, the equivalent of 20 times the growth rate for Western Europe. Read the full story here, at IT News Africa.

The increase in mobile connectivity has, as we have seen during the recent and ongoing uprisings in Northern Africa and the Middle East, played an important role in enabling the rapid spread of information among civilians. Thus, we must not forget that increased connectivity is not only an indicator of increased business potential in a market, but also a booster of transparency and potentially a prerequisite for democratic development.