Greater Cairo (GC) is the largest urban area in the Middle East and one of the most populated cities in the world. The urban growth patterns of the metropolitan area reveal a fragmented city of heterogeneous parts that developed unplanned over the years. GC public transport network offers a large variety of means of transportation throughout three governorates but its lack of efficiency is forcing more and more people to use private cars. The extreme density of the urban fabric and the widespread congestion on the road network end up making the city’s livability very difficult.
Pamella de Leon, Startup Section Editor, on October 29, 2019, wrote in Entrepreneur Middle East, an international franchise of Entrepreneur Media the following.
Aside from private cars, taxis, and other four-wheeled vehicles, a ubiquitous sight on the streets of Cairo (and in other parts of the MENA, as well as the world at large) are the three-wheeled tuktuks and two-wheeled motorcycles to navigate daily traffic- and taking a bite out of the opportunity in the alternative transport market is Egypt-born startup Halan. The ride-sharing app for tuktuks, motorcycles, and tricycles -a first in the region- was launched in November 2017 in underserved communities in Cairo where roads tend to be too narrow for cars, and provided a cheaper alternative to cars and buses.
It grew across Giza, Alexandria, Minya, Luxor and Qalyubia governorates, and expanded to Sudan in 2018. It also offers on-demand logistics solutions to support large organizations and small businesses alike in their distribution and supply chain. Founded by Mounir Nakhla and Ahmed Mohsen, the former had the lightbulb moment when the idea was proposed to him by one of Gojek’s seed investors.
After meeting Nadiem Makarim, the CEO of Gojek, a startup that has been dubbed Indonesia’s first unicorn venture and has grown as an on-demand tech company for the transport, payment, and food sector, Nakhla was inspired from its success, and saw potential for a similar impact in Egypt. With Egypt’s population of more than 100 million, internet penetration, fast-growing sales of smartphone devices and a growing use of mobile apps, all the elements were positive, he notes.
“Transportation is one of the fastest ways of acquiring customers by solving a real need, and we wanted to be the app of choice for the underserved,” he says. “Egypt has north of 700,000 tuktuks already operating as taxis, and just over 1.5 million two-wheeler vehicles, used for both personal transportation and for delivery services, and this is where Halan comes in.”
As part of the startup’s efforts to organize the market and ensure safety, Nakhla says they also have a meticulous screening process when recruiting drivers. Besides offering convenience to customers, Nakhla says they also provide incremental business for their drivers, and thus increase their incomes.
The founder and CEO is no stranger to working with Egypt’s mobility scene and underserved communities- he co-founded Mashroey, an Egypt-based light transport financing business, and Tasaheel, an Egypt-based micro-financing venture, which Nakhla says, has served more than 1 million customers combined. And the rest of the founding team are veterans in the transport field too: co-founder and CTO Ahmed Mohsen has published several papers in IEEE on AI, was part of the founding team and a shareholder in SecureMisr, a security consultancy company in Egypt, and founded MusicQ and CircleTie.
Plus Mohamed Aboulnaga, Careem’s former Regional Director and Fawry’s Business Development Manager, joined as co-founder and COO. They also have key members who have worked previously with Uber and Ghabbour Auto, which has resulted in a team that is comprised of “technically very competent, passionate, creative, results-driven individuals with a high work ethic. Each one with a unique strength, that when brought together make for an unrivalled team.”
After launching in 2017, Nakhla says that the company was doing around 50,000 rides by March 2018, and they closed their Series A round in the same year in a round co-led by Battery Road Ventures Holdings (BRVH) and Algebra Ventures. As for their funding, Nakhla put in 20% of the seed capital and raised the rest from Raouf Ghabbour, founder of GB Auto, as well as BRVH.
According to Nakhla, Halan has so far raised single-digit millions in total, and are currently in the process of their Series B funding round. The company’s business model involves taking a percentage of the ride fare as commission. Currently serving more than 100,000 customers, Halan has exceeded 10 million rides and operates in around 20-25 cities in Egypt and Sudan. As for its on-demand logistics offering, Halan is currently partnering with prominent names in the fast-food industry, including McDonald’s, KFC, Pizza Hut, Hardees, and many more. The startup has also been recently awarded Fastest-Growing Mobility Solution in the Market during the second edition of the E-Commerce Summit in September this year.
What happened in Geneva this Wednesday, in terms of finally bringing peace to Syria, could not be more significant: the first session of the Syrian Constitutional Committee.
The Syrian Constitutional Committee sprang out of a resolution passed in January 2018 in Sochi, Russia, by a body called the Syrian National Dialogue Congress.
The 150-strong committee breaks down as 50 members of the Syrian opposition, 50 representing the government in Damascus and 50 representatives of civil society. Each group named 15 experts for the meetings in Geneva, held behind closed doors.
This development is a direct consequence of the laborious Astana process – articulated by Russia, Iran and Turkey. Essential initial input came from former UN Envoy for Syria Staffan de Mistura. Now UN Special Envoy for Syria Geir Pedersen is working as a sort of mediator.
The committee started its deliberations in Geneva in early 2019.
Crucially, there are no senior members of the administration in Damascus nor from the opposition – apart from Ahmed Farouk Arnus, who is a low-ranking diplomat with the Syrian Foreign Ministry.
Among the opposition, predictably, there are no former leaders of weaponized factions. And no “moderate rebels.” The delegates include several former and current parliament members, university rectors and journalists.
After this first round, significantly, the committee’s co-chair, Ahmad Kuzbari, said: “We hope that our next meeting could take place in our native land, in our beloved Damascus, the oldest continuously inhabited capital in history.”
Even the opposition, which is part of the committee, hopes that a political deal will be clinched next year. According to co-chair Hadi al-Bahra: “I hope that the 75th anniversary of the United Nations next year will be an opportunity to celebrate another achievement by the universal organization, namely the success of efforts under the auspices of a special envoy for political process, who will bring peace and justice to all Syrians.”
Join the patrol
The committee’s work in Geneva proceeds in parallel to ever-changing facts on the ground. These will certainly force more face-to-face negotiations between Presidents Putin and Erdogan, as Erdogan himself confirmed: “A conversation with Putin can take place any time. Everything depends on the course of events.”
“Events” seem not to be that incandescent, so far, even as Erdogan, predictably, releases the whiff of a threat in the air: “We reserve the right to resume military operation in Syria if terrorists approach at the distance of 30km to Turkey’s borders or continue attacks from any other Syrian area.”
Erdogan also said the de facto safe zone along the Turkish-Syrian border could be “expanded,” something that he would have to clear in minute detail with Moscow.
Those threats have already manifested on the ground. On Wednesday, Turkey and allied Islamist factions launched an attack against Tal Tamr, a historic Assyrian Christian enclave 50km deep inside Syrian territory – far beyond the scope of the 10km patrol zone or the 30km “safe” zone.
Poorly-armed Syrian troops pulled out under fierce attack, and with no apparent Russian cover. The Syrian military on the same day issued a public statement calling on the Syrian Democratic Forces to reintegrate under its command. The SDF has said a compromise must be reached first over semi-autonomy for the northeastern region. Thousands of residents in the meantime fled farther south to the more protected city of Hasakeh.
Two facts are absolutely crucial. The Syrian Kurds have completed their pull out ahead of schedule, as confirmed by Russian Defense Minister Sergey Shoigu. And, this Friday, Russia and Turkey start their joint military patrols to the depth of 7km away from the border, part of the de facto safe zone in northeast Syria.
The devil in the immense details is how Ankara is going to manage the territories that it now actually controls, and to which it plans to relocate as many as 2 million Syrian refugees.
Your oil? Mine
Then there’s the nagging issue that simply won’t go away: the American drive to “secure the oil” (Trump) and “protect” Syrian oilfields (the Pentagon), for all practical purposes from Syria.
In Geneva, Russian Foreign Minister Sergey Lavrov – alongside Iran’s Javad Zarif and Turkey’s Mevlut Cavusoglu – could not have been more scathing. Lavrov said Washington’s plan is “arrogant,” and violates international law. The very American presence on Syrian soil is “illegal,” he said.
All across the Global South, especially among countries in the Non-Aligned Movement, this is being interpreted, stripped to the bone, for what it is: the United States government illegally taking possession of natural resources of a third country via a military occupation.
And the Pentagon is warning that anyone attempting to contest it will be shot on sight. It remains to be seen whether the US Deep State would be willing to engage in a hot war with Russia over a few Syrian oilfields.
Under international law, the whole “securing the oil” scam is a euphemism for pillaging, pure and simple. Every single takfiri or jihadi outfit operating across the “Greater Middle East” will converge, perversely, to the same conclusion: US “efforts” across the lands of Islam are all about the oil.
Now compare that with Russia-Iran-Turkey’s active involvement in a political solution and normalization of Syria – not to mention, behind the scenes, China, which quietly donates rice and aims for widespread investment in a pacified Syria positioned as a key Eastern Mediterranean node of the New Silk Roads.
As Climate change could cause 29% spike in cereal prices: leaked UN report, because Food supply chains will get disrupted globally, the study warns. Report to be officially released in August informs Nitin Sethi, of New Delhi in this article of Business Standard.
As far as the MENA region is concerned, food has always been in short supply, but does this mean it would get worse.
The report will be put before all member countries of the UN Framework Convention and once it gets their stamp of approval by consensus it will be made public on August 8. Photo: Representative Image
“The rate and geographic extent of global land and freshwater resources over recent decades is unprecedented in human history,” a report authored by UN’s panel of scientists from across the world on climate change is set to inform. Business Standard reviewed a leaked copy of the draft report sent to the governments of 197 countries. The report warns that as the global temperatures rise, the stress on land resources and its productivity is set to rise.
The report by the UN Inter-governmental panel on climate change, is called, “IPCC Special Report on Climate Change, Desertification, Land Degradation, Sustainable Land Management, Food Security, and Greenhouse gas fluxes in terrestrial ecosystems.”
The report will be put before all member countries of the UN Framework Convention and once it gets their stamp of approval by consensus it will be made public on August 8.
The authors of the report, gleaning through state-of-art science research have concluded that, “Observed climate change is already affecting the four pillars of food security – availability, access, utilization, and stability – through increased temperatures, changing precipitation patterns, and greater frequency of some extreme events.”
Continuing climate change is expected to further “create additional stresses on land systems exacerbating risks related to desertification, land degradation and food security,” the report says.
In a significant finding for countries such as India, the authors say, at global warming of 2° Celsius, the population of drylands exposed and vulnerable to water stress, increased drought intensity and habitat degradation could be as high as 522 million. Scientists conclude that at current levels of greenhouse gas emission reductions committed by the countries under Paris Agreement there is a good likelihood for the planet to breach the 2° Celsius temperature rise barrier.
“In drylands, desertification and climate change are projected to cause further reduction in crop and livestock productivity, modify the composition of plant species and reduce biological diversity,” research endorsed by the scientific panel shows.
Half of the vulnerable population due to the climate-change induced aridity would be in South Asia. The degradation of land due to climate change is already leading to consequent shaving off of the global economy, the scientific panel notes. “There are increasingly negative effects on GDP from impacts on land-based values and ecosystem service as temperature increases,” the report says. But, it notes that, at the regional level, the impacts would vary. “Compound extreme events, such as a heat wave within a drought or drought followed by extreme rainfall, will decrease gross primary productivity of lands, the authors warn
The impact on agriculture in higher latitudes is recorded to be different than in lower ones, such as one covering India. “Increasing temperature are affecting agricultural productivity in higher latitudes, raising yields of some crops such as maize, cotton, wheat, sugar beets, while in lower-latitude regions yields of crops such as maize, wheat and barley are declining.
Modelling results, that the scientific panel reviewed, show that cereal prices could rise by up to 29 per cent in 2050 due to climate change, which would impact consumers globally through higher food prices, though the impact would vary by regions. The stability of food supply is expected to decrease as the magnitude and frequency of extreme events caused by climate change increases, disrupting food chains globally.
The increase in global temperatures and consequent climate change is already affecting the productivity of livestock, which is one a main-stay of Indian rural economy. The authors conclude, “Observed impacts in pastoral systems include pasture declines, lower animal growth rates and productivity, damaged reproductive functions, increased pests and diseases, and loss of biodiversity.”
At the same time coastal economies are already suffering an impact as well. “Coastal erosion is affecting new regions as a result of interacting human drivers and climate change such as sea-level rise and impacts of changing cyclone paths,” though the scientists hold a low level confidence in the scientific research that concludes the impact of climate change on cyclone paths.
The World Economic Forum article dated 28 May 2019, could well be applied to most of the countries of the MENA region. Apart from the oil exporting ones, all the others’ informal economy appears to the naked eye as undergoing the same phenomenon but perhaps at a lesser density. In effect, very much like in the neighbouring sub-Saharan regions, the MENA’s informal markets seem to be pushing towards a new kind of business structure. A new kind of company is revolutionising Africa’s gig economy?Aubrey Hruby, Senior advisor to Fortune 500 companies replies.
For more than 30 years, governments and international development organizations have followed the same recipe for formalising the world’s informal economy; enacting new legislation and regulations or abolishing those that get in the way of the process.
By 2035, Africa will contribute more people to the workforce each year than the rest of the world combined. By 2050, the continent will be home to 1.25 billion people of working age. In order to absorb these new entrants, Africa needs to create more than 18 million new jobs each year. Given the urgent need to provide jobs and livelihoods to Africans, it is time to examine the conventional wisdom that informal markets must transition into formal markets. Development finance institutions (DFIs) and private investors in African markets can play a critical role in both advancing Africa’s gig economy and changing the narrative that growth in informal markets is incompatible with sustainable development.
Across African markets, companies are pioneering business models that bridge the formal and informal sectors; in these models, each company is a formal entity but can mobilise large numbers of informal actors in their supply chains or service delivery. While this has been done in dairies in Kenya and at coffee and cocoa outgrowers across the continent and in other sectors for nearly a century, the penetration of mobile phones has enabled a new breed of African companies to monetise their ability to organize and inject trust into fragmented informal markets. However, unlike Uber or Airbnb, which disrupted largely formal sectors, many of Africa’s new ‘gig economy’ firms are writing the rules for whole new industries in local markets.
Perhaps the most high-profile example is Safaricom’s M-PESA. Since its launch in 2007, M-PESA, a mobile payments system developed by Kenya’s largest telecoms operator, has enabled millions of informal sector workers to move money at a lower cost, which has provided a significant boost to the Kenyan and Tanzanian economies. Another, more recent example, is Nigeria’s Cars45, operated by Frontier Car Group. Nigeria’s $12 billion used car industry is largely informal and characterised by distrust, a lack of standardisation and the absence of a structured dealer network. Cars45 facilitates the buying and selling of used cars by pricing and rating their condition transparently and conducting online auctions. Many sectors throughout the continent remain highly informal and would benefit from these types of bridges into formality. These ‘bridge companies’ are going to define the future of employment in African countries.
DFIs are ideally placed to invest in bridge companies in African markets, given their long presence and in-depth engagement with local financing environments. The International Finance Corporation (IFC) and the UK’s CDC Group already invest in technology-enabled start-ups, and others, including OPIC, are adapting their strategies to be able to do so. Many of the continent’s most promising technology-enabled bridge companies are starting to raise funding large enough to attract the attention of DFIs. Frontier Car Group recently raised $89 million, Kenya’s Twiga Foods raised $10 million, and Nigeria’s Kobo365 has raised $6 million. Overcoming a dearth of funding remains one of the highest barriers for African entrepreneurs, and the development impact of investing in those that improve employment is enormous.
The gig economy comes with limitations. Lack of legal rights, limited career progression, stagnant pay and a lack of benefits are just some of the issues that will need to be addressed in an ‘Uberised’ world. These challenges, plus the day-to-day economic uncertainty, make the informal sector far worse in many ways than the formal. Bridge companies – because they are registered, and have a public brand and centralised management – can be pressured into addressing issues around workers’ wellbeing. Studies into the financial behaviours and needs of low-income families by BFA, a consulting firm specialising in financial inclusion policies, found that workers often aspired to ‘gig economy’ jobs but hated casual labour (such as waiting on a corner to be hired for the day) because of the lack of reliability and predictability.
The future of work is changing and the mass job creators of today will not be able to meet the needs of tomorrow’s workforce in the same way. Bridge companies are pioneering new ways of injecting efficiency and higher productivity into traditional informal markets. Investing in this trend is critical to solving Africa’s pressing job creation need.