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9Th the Ethiopian American The Ethiopian American volume 4 no.4 Aug 2014 9th ETHIOPIAN DIASPORA BUSINESS FORUM Investing in Ethiopia's Emerging Technology Sector Eyes on Ethiopia's ICT Business Developing Mobile Commerce in Emerging Markets The Revolution in Transportation Technology 1 IN THIS ISSUE... COVER STORY SOCIAL LIFE 06 27 Eyes on Ethiopia’s ICT Business Meron Wudneh for Miss Africa USA Pageant 13 Developing Mobile Commerce in LITERATURE Emerging Markets 16 20 The Unsung Hero of Ethiopian Skies The Revolution in Transportation 22 Technology Book Review: “Fabric” 25 FEATURED STORIES Book Review: “All Our Names” 23 dVentus: Powering Ethiopia’s Green Technology Ambition 22 Interview with Zemedeneh Negatu 26 ArifZefen: Digital Access to Ethiopian Songs 18 Tapping to Ethiopia’s Geothermal Potential 2 3 1P FAIRFAX.indd 1 05/04/12 11:24 journey to modernize its economy and will be held under the theme of “Investing in Ethiopia’s Emerging Technology Sector”. Some may not see the various Diaspora investments in the technology sector as small or even trivial. The truth is that many interesting and pioneering Diaspora technology investments are slowly but quietly transforming Ethiopia’s economy in a significant way. It is for that reason that we decided to Publisher’s Note make this year’s Forum about the It is hard to believe that it has been 10 emergence of the technology sector years since The Ethiopian American in Ethiopia. We chose to look at this started publishing as an online and sector also because of the heavy print magazine. This year also marks involvement and leadership of the the 9th year since the magazine began Diaspora in technology investment, organizing the Ethiopian Diaspora knowledge transfer and adaptation in Business Forum. Looking back now, Ethiopia. none of us expected that we will be Investors such as Munir Duri of organizing the Forum and continue Kifiya Financial Technology PLC and to publish the magazine this long. As Daniel Gizaw of dVentus PLC are a volunteer based community and leading the way in transforming their THE ETHIOPIAN AMERICAN trade advocacy organization, we faced respective sectors. Samuel Tesfaye www.theethiopianamerican.com many challenges over the years. No and Behailu Assefa, two other trail matter how great the challenge, we blazing Diaspora investors in the THE ETHIOPIAN AMERICAN is published by the Ethiopian American LLC persevered and thrived and continue wind and solar sectors, respectively, 6394 Andrew Mathew Trc to do so. We hope to continue to will be part of the headlining panel Springfield V A 22150 serve our community for the next [email protected] discussion on August 2nd at The www.theethiopianamerican.com coming decade. In order to do that George Washington University. Other EDITOR-IN-CHIEF though, we will need the greater speakers from the emerging world Omer Redi involvement of the community in the of e-Commerce will also speak about coming years. developments in their respective REPOrterS Next year will be a special year. It will sectors. Equally important is the Andualem Sisay Elias Gebreselassie be our 10th Forum and we will be content of this year’s magazine. organizing the Forum in Addis Ababa. The stories and articles were CONTRIBUTORS Off course for those who have been carefully selected to mirror the Yahoshuah Israel issues which will be discussed at Wengel Tessema with us long enough will remember Bruk Taye, Esq. that the first Forum was held in Addis this year’s Forum. We cover in this Luladay Aragaw Zena-Gabriel Hailu Ababa. Therefore, we will be going issue emerging tech sectors such as telecom, mobile payment, thermal back to where it all started. We invite GRAPHIC DESIGN all of our members and supporters energy development, transportation ALTOUR TECH to participate in the planning and technology and other critical matters to the Diaspora community. We hope ADVertiSING SALES organizing effort. We can use all Belco Business PLC the help we can get. We also urge you find the stories informative and our loyal supporters and sponsors engaging. As always, we welcome SUBSCRIPTION to continue their support as we get your comments on the magazine and US - The Ethiopian American LLC 6394 the Forum. We strive to serve you Andrew Mathew Trc ready for our 10th Forum. Everyone’s Springfield VA 22150 support is welcome, be it in the form better. Tel. +1 202-527-0980 ETHIOPIA -Belco Business Plc, of ideas or material support. Yohannes Assefa, Esq., the sole marketing agent of the Ethiopian American LLC in Ethiopia Coming back to this year’s Forum, the Publisher & Executive Director P.O.Bos. 4832 Tel. +251 912-600-379 Forum will focus on Ethiopia’s great ADDIS ABABA, ETHIOPIA 4 5 T H N E ET H ERICA IO M P A IA N N IA A P M IO ERICA H ET E N H T COVER STORY Eyes on Ethiopia’s ICT Businesses By Andualem Sisay It started in 2010 as a pilot public- and telephone,” says Munir Duri, financial services such as branchless private partnership project in founder and CEO of Kifiya Financial banking, which uses multiple channels Ethiopia to modernize and speed Technology Services. including mobile phones, kiosks up bill collection system of public and cards. While Lehulu focuses in Munir, a returnee from Manchester, utility agencies. Today Kifiya serving urban dwellers, the branchless England, where he studied Engineering Financial Technology PLC’s Lehulu, banking initiative aims to serve and Management, established an an information communication the rural unbanked population in IT-based service company in 1996, technology-based eService Initiative, partnership with micro-credit financial which was later transformed into has 35 centers throughout Addis intuitions. This is an initiative of and Kifiya in 2010. When Munir returned Ababa. is supported by the Bill & Melinda to Ethiopia in 1991, he saw an Gates Foundation’s Financial Inclusion The concept of one-stop electronic opportunity in the fledging ICT sector project. payment services was designed by of the country. The company he the Ministry of Communication and founded has been providing various The growing number of private Information Technology (MCIT). Kifiya ICT–based solutions for years. But four businesses engaged in the delivery Financial Technology PLC (Kifiya) was years ago, a bigger opportunity came of government services shows selected to undertake the investment, for Kifiya when the Ministry of CIT government’s commitment to increase implement and operate the Unified Bill announced a bid to introduce a Unified private sector participation in the ICT Payment system under this scheme Billing System for utilities. sector, said Munir. “The MCIT’s public- under the service name of Lehulu. private partnership has been crucial “At that time our company was Utility payments from Ethiopian and anchor for the success of the narrowing its focus on testing Electric Power Corporation, Addis Lehulu,” he added. various payment and digital financial Ababa Water and Sewerage Authority, services solutions; and it was a good The digital financial services initiative and Ethio Telecom were the first opportunity for us,” says Munir. of Kifiya aspires to be like Kenya’s services implemented under this Mpesa. Kifiya plans to offer much scheme. Today Kifiya’s Unified Billing - Lehulu more services than Mpesa though. - has 35 eService (payment) centres, “The service saves time and Kifiya’s pilot project at the moment serving all the residents of Addis transportation cost which previously offers both branchless banking and Ababa. In addition to Lehulu, Kifiya was spent going to three different mobile money services. It aims to From his office in central Addis Munir oversees operations of first such company in Ethiopia. (Photo by Andualem Sisay) is also engaged in related digital locations to pay for electricity, water enable micro-finance institutions 6 7 T to provide banking services beyond them for longer time as they often provision is subject to change by the H E their branches. Kifiya’s approach uses join other companies or start their Council of Ministers at any time, when ET multiple channels - in addition to own businesses.Though we don’t the government deems it necessary. H IO mobile phones - such as kiosks and retain them for long, we are happy Accordingly, over the past few years, P IA cards. Kifiya’s branchless banking to contribute for the development mobile SMS services are introduced N A system uses smart phones that are of highly skilled professionals in this by the private sector in partnership M ERICA attached to a biometric card reader/ sector,” he says. with the state owned Ethio telecom, printer to serve the rural community, which is the sole telecommunication “From our experience working with N which often have connectivity service provider for the 90 million the government, there is a strong challenges, according to Munir. plus population of the East African commitment to encourage companies country. Official statistics shows GebeyaLink, an Amharic-English to invest in ICT and deliver various that by the end of December 2014, hybrid term that means market link, is services through creation of favourable 10,931 telecentres, 2,280 internet another of Kifiya’s electronic voucher investment incentives and enabling cafes, and 70 telecommunication services currently being tested using environment.” values added service providers were mobile phones. This solution is now ICT in Ethiopia licensed to operate across the country. implemented serving over 10,000 A Telecommunication Expansion people who receive food support Global industry reports show that Project for the whole nation is already through the Productive Safety Net Ethiopia has one of the least ICT underway with a budget of 1.6 billion Program which is supported by 40 penetration rates in Africa. The USD. participating stores and the World United Nation’s International Food Program’s beneficiary program in Telecommunication Union (ITU) report The government’s March 2014 report four towns across Ethiopia.
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