Chika Uwazie, 29, is the dynamic and successful founder of a company providing payroll solutions to Nigerian businesses. She is one of 20 top African digital start-ups supported by the World Bank Group through its XL Africa acceleration program.
A pan-African pilot program, XL Africa’s objective is to scale up high-growth digital start-ups that are providing services and generating revenue while creating employment. The program aims to help businesses attract capital between $250,000 and $1.5 million. It culminated in a two-week residency in Cape Town, South Africa, where entrepreneurs pitched their business concepts to investors following intense mentorship and support on getting investment-ready. Coming from eight different countries, they provide services including solar energy, event planning, printing, and agriculture data via drones.
“Being here, pitching to investors has been very helpful. I could never have got this exposure. It’s hard to be in a room full of investors interested in investing in Africa,” said Uwazie. “But what we need are people who will help us open doors, mentors who understand how Nigeria works.”
Uwazie said it was helpful to spend time with her peers, Africa’s crème de la crème of start-ups, who went through a rigorous selection process from over 900 applicants to be chosen for the XL Africa program.
She founded her company, TalentBase, whose motto is “bringing payroll online across Africa” after working in human resources for 10 years and says providing a software solution in this sector was a natural progression. Next, Uwazie plans to take TalentBase to other countries such as Kenya and Ghana.
Paul Noumba Um, World Bank country director for southern Africa, said XL Africa showed that scaling up Africa’s top start-ups was a worthwhile project which needs continued support.
“What I saw here is really exciting. These are companies that are already running and solving problems in Africa and helping consumers and businesses to be more efficient. For instance, if you are in Nigeria, there’s Rensource, which offers affordable electricity supply, and a company can run without having to worry about investing in back-up generators,” he said. “It’s great to see the World Bank Group develop a platform such as XL Africa for identifying and nurturing innovative and disruptive start-ups, but we need to continue building national and regional ecosystems to multiply these successes.”
In designing XL Africa, the World Bank Group elected to target the investment readiness of the top digital firms that were poised for scaling through custom mentorship and direct access to investors, a need unmet by many existing accelerators on the continent. Sourcing experienced local mentors for the program was especially difficult and is among the elements of Africa’s entrepreneurship ecosystems that need further strengthening for future generations of pan-African programming to be successful, said Natasha Kapil, World Bank senior private sector specialist.
Down the hall from the young entrepreneurs’ pitch session were policymakers, donors, and investors in a forum exchanging ideas about what was required to scale high-growth start-ups like the ones in the XL Africa program. They discussed how providing support to entrepreneurs could be done more effectively, asking whether acceleration was a panacea to solving problems experienced by start-ups and whether the model used in the XL Africa program, which worked well with digital start-ups, could do the same for other sectors.
Tony Elumelu Foundation CEO Parminder Vir highlighted the importance of empathy. She said there was a need for investors to become mentors to start-ups to learn about their reality, as this would enable investors to better empathize with the entrepreneurs while bringing their business acumen to the creativity offered by the entrepreneurs. She urged investors to “take a risk and invest in Africa’s talent.”
Vir said it was critical to utilize well-tested African models that are successful and combine them with Western models to build “a truly African ecosystem by Africans. Let’s develop models from Africa. Let’s get African capital to work for Africa.”
She also said governments had a critical role in creating enabling environments for entrepreneurs, citing Rwanda, Tanzania, and South Africa as some of the countries in Africa with the most developed ecosystems, but still needing their governments to address basic internet access issues.
Also speaking at the forum was Hugues Vincent-Genod, senior investment officer at Investisseurs and Partenaires, an investment group with 50 years of investing, mostly in West Africa. He said their challenge was working with entrepreneurs who were not investment-ready. “Most important is providing seed finance and letting those who fade do, as this is what helps to pick the winners, who will create jobs,” he said. Vincent-Genod also said donors had a critical role to play in de-risking investment in the early stages of technology start-ups.
Klaus Tilmes, World Bank Group director of the Trade & Competitiveness Global Practice, said, “As donors, we need to focus on scalable models supporting innovation and digital entrepreneurs that are attractive to angel and venture investors.” He said Africa was mature enough to create its own models that included local investors, adding that it was important to leverage government support and to have continuous collaboration with partners that show accountability.
Asia Needs a Region-Wide Approach to Harness Fintech’s Full Potential
Asia’s policy makers should strengthen cooperation to harness the potential of new financial technologies for inclusive growth. At the same time, they should work together to ensure they can respond better to the challenges posed by fintech.
New technologies such as mobile banking, big data, and peer-to-peer transfer networks are already extending the reach of financial services to those who were previously unbanked or out of reach, boosting incomes and living standards. Yet, fintech also comes with the risk of cyber fraud, data security, and privacy breaches. Disintermediation of fintech services or concentration of services among a few providers could also pose a risk to financial stability.
These and other issues were discussed at the High-Level Policy Dialogue on Regional Cooperation to Support Innovation, Inclusion, and Stability in Asia, organized by the Asian Development Bank (ADB), Bank Indonesia, and the ASEAN+3 Macroeconomic Research Office (AMRO).
The panel comprised Ms. Neav Chanthana, Deputy Governor of the National Bank of Cambodia; Mr. Diwa Guinigundo, Deputy Governor of Bangko Sentral ng Pilipinas; Ms. Mary Ellen Iskenderian, President and Chief Executive Officer of Women’s World Banking; Mr. Ravi Menon, Managing Director of the Monetary Authority of Singapore; Mr. Takehiko Nakao, President of ADB; Mr. Abdul Rasheed, Deputy Governor, Bank Negara Malaysia, and Mr. Veerathai Santiprabhob, Governor of the Bank of Thailand. Mr. Mirza Adityaswara, Senior Deputy Governor of Bank Indonesia, gave the opening remarks at the conference and Ms. Junhong Chang, Director of AMRO, gave the welcome remarks.
“Rapidly spreading new financial technologies hold huge promise for financial inclusion,” said Mr. Nakao. “We must foster an enabling environment for the technologies to flourish and strengthen regional cooperation to build harmonized regulatory standards and surveillance systems to prevent international money laundering, terrorism financing, and cybercrimes.”
“Technology is an enabler that weaves our economies and financial systems together, transmitting benefits but also risks across borders,” said Ms. Chang. “Given East Asia’s rapid economic growth, understanding and managing the impact of technology in our financial systems is essential for policymakers to maintain financial stability.”
“Asia, including Indonesia, is an ideal place for fintech to flourish,” said Mr. Adityaswara. “In Indonesia’s case, there are more than a quarter of a billion people living on thousand of islands, waiting to be integrated with the new technology; young people eager to enter the future digital world; more than fifty million small and medium-sized enterprises which can’t wait to get on board with e-commerce; a new society driven by a dynamic, democratic middle class which views the digital economy as something as inevitable as evolution.”
Despite Asia’s high economic growth in recent years, the financial sector is still under-developed in some countries. Fewer than 27% of adults in developing Asia have a bank account, well below the global median of 38%. Meanwhile, just 84% of firms have a checking or savings account, on a par with Africa but below Latin America’s 89% and emerging Europe’s 92%.
Financial inclusion could be increased through policies to promote financial innovation, by boosting financial literacy, and by expanding and upgrading digital infrastructure and networks. Regulations to prevent illegal activities, enhance cyber security, and protect consumers’ rights and privacy, would also build confidence in new financial technologies.
Cutting-edge tech a ‘double-edged sword for developing countries’
The latest technological advances, from artificial intelligence to electric cars, can be a “double-edged sword”, says the latest UN World Economic and Social Survey (WESS 2018), released on Monday.
The over-riding message of the report is that appropriate, effective policies are essential, if so-called “frontier technologies” are to change the world for the better, helping us to achieve the Sustainable Development Goals (SDGs) and addressing climate change: without good policy, they risk exacerbating existing inequality.
Amongst several positive indicators, WESS 2018 found that the energy sector is becoming more sustainable, with renewable energy technology and efficient energy storage systems giving countries the opportunity to “leapfrog” existing, often fossil fuel-based solutions.
The wellbeing of the most vulnerable is being enhanced through greater access to medicines, and millions in developing countries now have access to low-cost financial services via their mobile phones.
Referring to the report, UN Secretary-General António Guterres said that “good health and longevity, prosperity for all and environmental sustainability are within our reach if we harness the full power of these innovations.”
However, the UN chief warned of the importance of properly managing the use of new technologies, to ensure there is a net benefit to society: the report demonstrates that unmanaged implementation of developments such as artificial intelligence and automation can improve efficiency but also destroy quality jobs.
“Clearly, we need policies that can ensure frontier technologies are not only commercially viable but also equitable and ethical. This will require a rigorous, objective and transparent ongoing assessment, involving all stakeholders,” Mr. Guterres added
The Survey says that proactive and effective policies can help countries to avoid pitfalls and minimize the economic and social costs of technology-related disruption. It calls for regulation and institutions that promote innovation, and the use of new technologies for sustainable development.
With digital technology frequently crossing borders, international cooperation, the Survey shows, is needed to bring about harmonized standards, greater flexibility in the area of intellectual property rights and ensuring that the market does not remain dominated by a tiny number of extremely powerful companies.
Here, the UN has a vital role to play, by providing an objective assessment of the impact that emerging technologies have on sustainable development outcomes – including their effects on employment, wages and income distribution – and bringing together people, business and organizations from across the world to build strong consensus-led agreements.
Our Trust Deficit with Artifical Intelligence Has Only Just Started
“We suffer from a bad case of trust-deficit disorder,” said UN Secretary-General António Guterres in his recent General Assembly speech. His diagnosis is right, and his focus on new technological developments underscores their crucial role shaping the future global political order. Indeed, artificial intelligence (AI) is poised to deepen the trust-deficit across the world.
The Secretary-General, echoing his recently released Strategy on New Technologies, repeatedly referenced rapidly developing fields of technology in his speech, rightly calling for greater cooperation between countries and among stakeholders, as well as for more diversity in the technology sector. His trust-deficit diagnosis reflects the urgent need to build a new social license and develop incentives to ensure that technological innovation, in particular AI, is deployed safely and aligned with the public interest.
However, AI-driven technologies do not easily fit into today’s models of international cooperation, and will in fact tend to undermine rather than enforce global governance mechanisms. Looking at three trends in AI, the UN faces an enormous set of interrelated challenges.
AI and Reality
First, AI is a potentially dominating technology whose powerful – both positive and negative –implications will be increasingly difficult to isolate and contain. Engineers design learning algorithms with a specific set of predictive and optimizing functions that can be used to both empower or control populations. Without sophisticated fail-safe protocols, the potential for misuse or weaponization of AI is pervasive and can be difficult to anticipate.
Take Deepfake as an example. Sophisticated AI programs can now manipulate sounds, images and videos, creating impersonations that are often impossible to distinguish from the original. Deep-learning algorithms can, with surprising accuracy, read human lips, synthetize speech, and to some extent simulate facial expressions. Once released outside of the lab, such simulations could easily be misused with wide-ranging impacts (indeed, this is already happening at a low level). On the eve of an election, Deepfake videos could falsely portray public officials being involved in money-laundering or human rights abuses; public panic could be sowed by videos warning of non-existent epidemics or cyberattacks; forged incidents could potentially lead to international escalation.
The capacity of a range of actors to influence public opinion with misleading simulations could have powerful long-term implications for the UN’s role in peace and security. By eroding the sense of trust and truth between citizens and the state—and indeed amongst states—truly fake news could be deeply corrosive to our global governance system.
AI Reading Us
Second, AI is already connecting and converging with a range of other technologies—including biotech—with significant implications for global security. AI systems around the world are trained to predict various aspects of our daily lives by making sense of massive data sets, such as cities’ traffic patterns, financial markets, consumer behaviour trend data, health records and even our genomes.
These AI technologies are increasingly able to harness our behavioural and biological data in innovative and often manipulative ways, with implications for all of us. For example, the My Friend Cayla smart doll sends voice and emotion data of the children who play with it to the cloud, which led to a US Federal Trade Commission complaint and its ban in Germany. In the US, emotional analysis is already being used in the courtroom to detect remorse in deposition videos. It could soon be part of job interviews to assess candidates’ responses and their fitness for a job.
The ability of AI to intrude upon—and potentially control—private human behaviour has direct implications for the UN’s human rights agenda. New forms of social and bio-control could in fact require a reimagining of the framework currently in place to monitor and implement the Universal Declaration of Human Rights, and will certainly require the multilateral system to better anticipate and understand this quickly emerging field.
AI as a Conflict Theatre
Finally, the ability of AI-driven technologies to influence large populations is of such immediate and overriding value that it is almost certain to be the theatre for future conflicts. There is a very real prospect of a “cyber race” in which powerful nations and large technology platforms enter into open competition for our collective data as the fuel to generate economic, medical and security supremacy across the globe. Forms of “cyber-colonization” are increasingly likely, as powerful states are able to harness AI and biotech together to understand and potentially control other countries’ populations and ecosystems.
Towards Global Governance of AI
Politically, legally and ethically, our societies are not prepared for the deployment of AI. The UN, established many decades before the emergence of these technologies, is in many ways poorly placed to develop the kind of responsible governance that will channel AI’s potential away from these risks and towards our collective safety and wellbeing. In fact, the resurgence of nationalist agendas across the world may point to a dwindling capacity of the multilateral system to play a meaningful role in the global governance of AI. Major corporations and powerful member states may see little value in bringing multilateral approaches to bear on what they consider lucrative and proprietary technologies.
There are, however, some important ways in which the UN can help build the kind of collaborative, transparent networks that may begin to treat our “trust-deficit disorder.” The Secretary-General’s recently-launched High-Level Panel on Digital Cooperation, is already working to build a collaborative partnership with the private sector and establish a common approach to new technologies. Such an initiative could eventually find ways to reward cooperation over competition, and to put in place common commitments to using AI-driven technologies for the public good.
Perhaps the most important challenge for the UN in this context is one of relevance, of re-establishing a sense of trust in the multilateral system. But if the above trends tell us anything, it is that AI-driven technologies are an issue for every individual and every state, and that without collective, collaborative forms of governance, there is a real risk that it will be a force that undermines global stability.
Potential of Pakistan’s Power Sector
A few years ago, several hours of load-shedding in Pakistan was very common, even in Islamabad, the capital of Pakistan...
Back to the future
In the classic Back to the Future movies, the future was powered by a decentralized clean-energy system. Houses and flying...
Can the Idlib Memorandum Freeze the Conflict?
During their Sochi talks in September 2018, Vladimir Putin and Recep Tayyip Erdogan reached an agreement on preserving the de-escalation...
First Global Gastronomy Tourism Startup Competition Launched
The World Tourism Organization and Basque Culinary Center (BCC), have launched a pioneering initiative for the gastronomic tourism sector, with...
Whether Pakistan’s membership in the IAEA Board of Governors is a major diplomatic achievement?
Pakistan has once again been elected a member of the IAEA Board of Governors (BoG) for the next two years...
The Tyranny of Opinion: Book Review
Russell Blackford has written The tyranny of opinion: Conformity and the future of liberalism, which explores the conflicts between freedom...
Israel’s Gas Ambitions are Valid but Challenges Remain
The discovery of Israel’s natural gas resources promise important benefits of energy security and economic gains. Israel is a leading...
- Queen Rania of Jordan Wears Ralph & Russo Ready-To-Wear
- OMEGA watches land on-screen in Universal Pictures’ new film First Man
- Experience the Prada Parfum’s Way of Travelling at Qatar Duty Free
- ‘Get Carried Away’ With Luxurious Villa Stays and Complimentary Private Jet Flights
- Westin Hotels & Resorts to Debut in Maldives
Intelligence3 days ago
The issue of intelligence between the United States and China
Eastern Europe2 days ago
Armenia’s Role in South Caucasus Policy of Russia
Economy3 days ago
‘America First’ vs. Global Financial Stability
Middle East2 days ago
Turkey plays Khashoggi crisis to its geopolitical advantage
Americas1 day ago
The future of Russia- Mexico Relations
Energy2 days ago
Hydrogen: The missing link in the energy transition
Terrorism2 days ago
The Islamic State’s reviving scheme
Russia2 days ago
Why and How Russia is poised to strengthen its Afghan Role