Kenya is among six countries identified as leaders in expansion of Africa’s share in the global digital economy, according to a new research.

These countries, the report says, are making remarkable progress in digital realm, boosting financial inclusion by creating digital platforms “that work for everyone and everywhere”.

The research conducted by Mastercard Center for Inclusive Growth in collaboration with The Fletcher School at Tufts University in the US, says the six countries are harnessing “the true potential of technology to drive inclusive growth, in a period of changing global market demands”.

The report, Getting Lions to Leapfrog: Can Digital Technologies Deliver on Africa’s Delayed Promise of Inclusive Growth? uses Kenya, Egypt, Ethiopia, Nigeria, Rwanda, and South Africa as case studies to provide insights on key drivers that could accelerate digital inclusion across the continent.

The six countries were examined against three primary variables — ease of creating digital jobs, resilience of governance and infrastructure and foundational digital potential.

The African Leapfrog Index (ALI) examines the possibility of technology helping overcome the primary barriers that have long held back African economies.

“The ultimate aim of the research was to help countries across Africa optimise their burgeoning digital evolutions, in order to accelerate economic development. These six countries were selected based on their size, economic growth, the median age of residents, quality of governance and digital momentum,” the report reads.

Mastercard’s Division President for Sub-Saharan Africa Raghav Prasad told Digital that Africa has come of age as it has more technology thinkers.

“There are wonderful dynamics in the digital economy and the continent has the potential to increase access to crucial services using mobile technologies and eventually help narrow the gap that exists,” he said.

“In the next ten years, Africa will have achieved substantial growth in digital inclusion and is set to leapfrog the rest of the world due to the numerous opportunities that exist.”

The rise of e-commerce, entrepreneurship and digital adoption represents tremendous potential for inclusive growth across Sub-Saharan Africa. But in order to realise this potential, the continent needs to ensure everyone has access to networks and resources they need.

Also, in order to make important strides in the global digital economy, Africa needs to create an enabling environment to support areas of rapid digital growth, the report notes.

Prof. Bhaskar Chakravorti, Dean of global business and founding executive director of Fletcher’s Institute at Tufts University, notes that for a sustainable digital transformation that involves all African states to take off, new ideas must be accommodated in the tech ecosystem.

“All talents in the technology front should be harnessed and nurtured as a sure away to inspire innovation. Capital goods and infrastructure such as roads, electricity and mobile networks should be enhanced to create solutions for commercial and societal needs,” noted that Prof. Chakravorti who also serves on the World Economic Forum’s Global Future Council on Innovation and Entrepreneurship.

Sub-Saharan Africa’s already burgeoning youth population, which is expected to grow by over 50 percent by 2050, presents a significant opportunity to create a demographic dividend, unlocking further investment in digital infrastructure as well as creating a more robust and inclusive workforce. These elements are banked on to help Africa embrace the Fourth Industrial Revolution at a more rapid pace, ultimately making the region’s economies more globally competitive.

Kenya, for instance, has been at the forefront of the African digital revolution over the past decade, and currently has over 80 percent internet penetration.

The country has been looking into leveraging various segments of digital economy such as e-commerce, taxi hailing services and blockchain to create jobs and spur growth.

South Africa has been expanding the integration and use of digital technologies across all segments of society, particularly to those who sit at the lower end of the pyramid.

Although Africa’s digital outlook is generally encouraging, there are still reasons for concern. A report by the United Nations Conference on Trade and Development (UNCTAD) reveals that Africa and Latin America account for less than one percent of the global digital economy.

“On almost all fronts, Africa seems to be lagging behind which reveals the continent may be losing when it comes to the value of the digital economy,” reads The United Nations Digital Economy Report 2019.

Mr Prasad is, however, optimistic that with the ongoing global trend in reduction of internet costs, Africa will benefit in the process as technologies such as cloud computing reduce initial costs of starting businesses.

“This will spur more growth and drive new innovations that will contribute to a bigger share of the global digital economy,” he said.

“With the right policies and support from the private sector, the capability to create new business models will be raised.”

Experts say for entrepreneurship to be the engine of digital growth, there is need to create a conducive business atmosphere to reduce the high number of start-ups folding few years after being established. According to Forbes, nine out of ten start-ups fail within the first five years of operation.

“Multiple players must be involved to invest in the passion of young entrepreneurs. There should be mentoring programmes for start-ups with more access given to new platforms,” said Mr Prasad.

Prof. Chakravorti echoes Mr Prasad remarks, asserting that a conducive environment forms the foundation of the success of any business.

“The necessary conditions must exist as well as a strong nurture and support ecosystem that attracts both local and foreign investors,” Prof. Chakravorti said.

With nearly 50 million people added to the African labour force in the next few years, most of whom will fall somewhere on a spectrum between digitally sentient and digitally sophisticated, the digital economy is poised to be not just the driver of consumption but also of livelihoods.

Natasha Jamal, Regional Director, Mastercard Center for Inclusive Growth for Middle East and Africa, said the company is rethinking what growth means for everyone in today’s digital economy, as well as helping to provide the tools and networks that can help people reach their potential and achieve a more secure future.

“Independent research like the ALI equips policymakers and community leaders with data-driven insights to inform economic development; and it can help other key stakeholders across all sectors better understand the opportunity for — and pathways to — digital inclusion on the continent,” she said.

“The ALI is intended to help countries and stakeholders in Africa recognise where the potential for technology-led leapfrogging is high.

This means acknowledging the strengths of each country and which policy areas are prime candidates for intervention to enable stakeholders to prioritise resources appropriately,” said Prof Chakravorti.

Source: https://www.businessdailyafrica.com/corporate/tech/Kenya-driving-Africa-digital-growth/4258474-5269450-spqane/index.html

National carrier Kenya Airways (KQ) has changed its schedule on the Nairobi-Malindi flights a few months after its resumed operations on the route.

The changes, which takes effect starting September 10, 2019 will see KQ flights leave Jomo Kenyatta International Airport (JKIA) at 2230hrs to arrive in Malindi at 2135hrs on Monday, Tuesday, Wednesday and Saturday.

The flight will then leave Malindi Airport at 2205hrs to arrive at JKIA at 2310hrs on Tuesday, Wednesday, Friday and Sunday.

Previously, KQ which sunk deeper into the red, reporting a net loss of Sh8.5 billion in the first half of this year, has been leaving JKIA at 2220hrs to arrive in Malindi at 1120hrs.

Another flight has been leaving Malindi airport at 0505hrs arrive at JKIA at 0620hrs.

“The schedule adjustment on this route is to give our guests an evening arrival and late departure from Malindi hence better connectivity from Rome,” said the airline in a statement Saturday.

KQ resumed four weekly flight to Malindi in June after suspending operations on the route six years ago.

The national carrier withdrew from the Malindi route citing difficulties in landing on poor condition of the airstrip.

The flight is normally operated by Jambojet using a Bombardier Q400 aircraft.

The Bombardier Q400 is designed accommodate 78 passengers, charging an amount the airline refused to disclose by the time we were going to press.

The aircraft also seats two pilots and two flight attendants.

Source: https://www.businessdailyafrica.com/corporate/companies/Kenya-Airways-adjusts-Nairobi/4003102-5265920-13j12a6z/index.html

A shortage of pilots has cost Kenya Airways  Sh5 billion in about 12 months through flight cancellation and delays amid plans by the national carrier to cut down routes in a race to improve efficiency.

The airline has a shortage of 106 pilots that has led to cancellation or delay of some of its flights, exacerbating its troubles with frustrated customers.

Kenya Airways has had to forego revenue and compensate passengers in the form of accommodation.

A memo from the carrier’s head of operations, Paul Njoroge, said the airline will start reducing flight routes as it proceeds with the hiring of 20 pilots on contract.

“In response to the crew shortage, we have unfortunately had to shrink the network to ensure that we deliver on our brand promise,” said Mr Njoroge. “The projected impact of the crew shortage is $50 million (Sh5 billion), which could have been avoided had KAPLA (Kenya Airline Pilots Association) worked with management in 2018 to recruit pilots directly to B737 (Boeing)”.

Kenya Airways linked 74 per cent of the 91 flight cancellations in the first two weeks of August to crew disruptions, adding that it cargo division has been hit hard. The airline’s management has in the recent past attributed the cancellations to crews calling in sick ahead of flights.

According to the airline, crew disruptions deepen during weekends as well as peak time for travels.

“What we are pointing out is a trend of ad hoc sickness over the weekend that appears not to be genuine,” said Captain Njoroge.

The airline spends 40 per cent of its payroll on pilots alone although they account for only 13 per cent of all its workforce.

In response to the memo from the management, Kalpa officials Wednesday said the union was not opposed to the hiring of the 20 pilots, but has expressed concerns over the likelihood of the jobs going to foreigners.

“We are not opposed to KQ hiring pilots but we just need to know where they are coming from, the qualifications and the returns, given that we have qualified Kenyans in KQ who qualify to be captains,” said Muriithi Nyagah, the secretary-general of the union.

Source: https://www.businessdailyafrica.com/news/Delayed-flights-cost-KQ-Sh5bn/539546-5268662-jlx46y/index.html

Kenya has intensified lobbying to win bid to host the 24th edition of the UN World Tourism Organization (UNWTO) General Assembly in 2021, officials said on Monday.

Najib Balala, Cabinet Secretary for Tourism and Wildlife said that Kenya will make a strong case to host the premier event when UNWTO members hold a biannual meeting this week in St Petersburg, Russia.

“We are going to make a solid case for Kenya to host the 24th UNWTO General Assembly meeting in 2021 as the first East African country to do so,” said Balala.

“We will build on the success of recently hosted high level global events in Kenya as a strong reason why Kenya should be voted as host for the upcoming meeting and hope to secure the victory,” he added.

Kenya will be competing with Philippines and Morocco in its bid to host the global tourism assembly when tourism ministers from UNWTO member states cast ballots during their meeting in Russia that runs from Sept. 9 to 13.

“A win to host the event will greatly enhance Kenya’s profile not only as the preferred travel destination in Africa, but also the choice destination for meetings and exhibitions: which is the next frontier of tourism that we want to create awareness in addition to the traditional beach and safari proposition,” said Balala.

Kenya’s tourism ministry will leverage on its previous experience in hosting world class events to lobby over 1,000 delegates from 130 UNWTO member states in the biannual event.

Likewise, East Africa’s largest economy will showcase its state of the art conference facilities, scenic attractions and advanced digital infrastructure to pitch for an opportunity to host the global tourism assembly.

According to a brief from the ministry of tourism, hosting the UNWTO general assembly is in line with Kenya’s quest to diversify tourism products and boost foreign exchange earnings.

 

Source: http://www.xinhuanet.com/english/2019-09/09/c_138378550.htm

In a massive show of confidence, the Universal Federation of Travel Agents Association (UFTAA) held its 2019 Mid-Year Forum in the city of Colombo, Sri Lanka from 1^st to 3^rd of September 2019.

The global travel and tourism federation convened its members from across the world to Sri Lanka’s commercial city in an effort to show support for the destination. 

On the Easter Sunday of April 21, this year, Sri Lanka faced one of its worst terrorist attacks after suicide bombers hit three churches and three luxury hotels in the capital Colombo in a series of coordinated attacks.

UFTAA President Sunil Kumar was unequivocal ” we have come here as travel and tourism professionals from across the world to tell everyone that Sri Lanka is safe as a tourism destination and has overcome the cowardly acts of evil. We did it before with Turkey when they were attacked in 2016 and we are doing it again with Sri Lanka”. 

At a gala dinner organized in honour of the delegates, Sri Lanka Tourism Minister Mr. John Amaratunga was elated that the travel professionals had stood with his country during its worst moment. ” When we were attacked in April the president of UFTAA personally came here to express solidarity with Sri Lankans. We are happy that UFTAA has chosen to hold its mid-year forum in Colombo. This demonstrates the confidence travel professionals have in our country”, he said. 

Among the UFTAA delegates was the President of the Association of Turkish Travel Agencies (TURSAB) Mr. Cetin Gürcün who gave a strong testimony of how UFTAA came to their aid at their hour of need. ” When we experienced a series of terrorist attacks in our country in 2016 including a widely reported incident at our main airport, the tourism industry was badly affected. We were facing an imminent collapse when we reached out to UFTAA for support”.

He further said, “In 2017, UFTAA chose to hold its Annual General Assembly and Jubilee Celebrations in Istanbul and spoke very strongly in support of our country. I am happy to report that our tourism industry has recovered very well and this year we are headed for a record number of tourists in our country.”

It is such testimonies, says UFTAA President Sunil Kumar, that makes UFTAA a powerful advocacy platform for her members. The ability to rally among ourselves especially during such unfortunate and difficult periods is what makes UFTAA tick. 

At the end of the Forum, delegates were treated to a city tour of the various attractions within and around Colombo city including the famous Independent square. 

The Chairman of the Kenya Association of Travel Agents (KATA) Mr. Mohammed Wanyoike has been elected to the Board of the Universal Federation of Travel Agents (UFTAA). Mr. Wanyoike was elected during the recent Board meeting and Mid-Year Forum held on 1-3 September 2019 in Colombo, Sri Lanka. He joins a galaxy of other Presidents of Travel Agencies from across the world in providing leadership to the global travel agents community. KATA was previously represented on the Board by Mr. S.G Kaka.

While congratulating Mr. Wanyoike on his election, UFTAA President Sunil Kumar said “we are happy for his election. Kenya is a very strong supporter of UFTAA on the African continent and we hope to see continued support under the leadership of Mr. Wanyoike. On his part Mr. Wanyoike thanked members for the confidence they had showed in him and promised to serve diligently. “UFTAA as our global umbrella body is a strategic organization in the travel industry and therefore I am honored to have been asked to join its leadership. This is a win not only for Kenya but Africa,” he added.

UFTAA is the global umbrella body of travel agents’ associations with membership from over 50 countries. It is the global voice of travel agencies in dealing with IATA matters among other global travel and tourism discussions.

The Kenya Association of Travel Agents (KATA) and Kenya Airways (KQ) on Thursday Morning held their annual review meeting with Nairobi Travel Agents.

The meeting that was held at the Jacaranda Hotel in Westlands was convened to discuss various issues affecting the travel industry.

Speaking during the event through a recorded video, KQ Chief Commercial Officer (COO) Ms. Ursula Silling assured travel agents of the airline’s continued support.

“Our main interest is to improve the customer experience. We are taking steps in the right direction to become the preferred airline,” she said.

Also speaking during the event, KQ Sales Director Mr. Julius Thairu announced to the delight of members that the outstanding issue of the churning related ADMs had finally been resolved.

“The matter has been extensively discussed with both the management and the board and a settlement has been agreed as per discussions agreed last year. This has taken long but I am happy that it is now behind us,” he said.

He called upon the travel agents to support the airline in order to increase its domestic market share to at least 60 percent which is he global standard for well performing airlines. 

Turning to the recently released half year results, he pointed out that despite recording an overall loss, the national carrier’s revenue had doubled from 6 percent to 12 percent. The loss, he added was mainly due to the high operational costs.

He stated that the New York route launch is one of the successful moves the airline has made and is performing exceedingly well.

“We are experiencing growth with the launch of more routes and the launch of auxiliary products,” he said.

Mr. Thairu stated that with support from the government, the airline will emerge from the turbulence. “Many regional carriers including Rwandair and Uganda Air are coming up because of the support they are receiving from their governments,” he said.

Also speaking during the event, Kenya Airways Regional Manager Ms. Rose Kiseli stated that the national carrier had organised trainings to sensitise travel agents and their ticketing staff to avoid ADM violations that result in penalties for the agents.

“We have noticed an increase in churning ADMs for Non-IATA agents and we will be seeking to introduce penalties like switching them off from the system,” she stated.

KATA Chairman Mr. Mohammed Wanyoike lauded the airline’s move to finally settle the issue on ADMs. He however regretted that the issue had taken too long to settle despite an agreement having been reached last year. He assured Kenya Airways of continued support from travel agents.

The Nairobi Travel agents were also given updates on NewGen ISS and the findings from a recent benchmark trip to Nigeria.

The International Air Transport Association (IATA) has announced that it is postponing the implementation of the New Generation of IATA Settlement Systems (NewGen ISS) that had been scheduled for October 16 to a later date.

In a notice to travel agents, IATA stated that the revised New Gen ISS implementation date will be communicated to the market once fixed.

This came at a time when the industry was preparing for the migration. Reacting to the announcement, KATA CEO said” We don’t know why IATA has decided to postpone the implementation date. No explanation has been provided and therefore we shall be reaching out to IATA seeking to understand why they arrived at this decision.” This will however give our members more time to prepare for the migration.

Meanwhile, IATA has announced that changes to the Local Financial Criteria that were discussed and approved by the APJC in April this year have been adopted. The new LFC will take effect at the time of implementing NEWGEN ISS.

Amadeus East Africa have moved back to their newly refurbished offices, eight months after a deadly terrorist attack rocked their premises at the Dusit D2 Complex.

The Amadeus team moved offices to the Oval in Westlands after the attack on January 15, 2019 that left 21 people dead and 28 others injured.

Through a notice, they informed their clients and partners in the travel industry of their move back to their offices at Grosvenor Building at the complex this month.

Kenya Association of Travel Agents CEO Mr. Nicanor Sabula congratulated them for the move saying, “It is good to see Amadeus move back to their former offices. This is clear evidence that they have triumphed over terror”.

Dusit D2 complex located at 14 Riverside Drive houses the Dusit D2 hotel and various local and international companies and organisations.

The Dusit D2 Hotel was re- opened in a colourful event six months after the fatal attack. Among the dignitaries present during the grand re-opening were Cabinet Secretaries for Tourism- Najib Balala, Sports- Amina Mohamed and Defence- Raychelle Omamo.