Over the past year, we all noticed more family members, friends, and colleagues adopting gig-work as a lifebuoy to cope with the pandemic’s consequences. The market landscape expanded to reach different professions and sectors, offering both workers and businesses, help to absorb shocks. It is totally reasonable to expect that, since the pandemic impacted all economies, it also had a considerable impact on the supply and demand of Gig Platform’s market. However, the nature of this impact remains subject to debate. A study conducted by Mastercard in 2019 sized the gig economy market at $248.3 billion with a projected annual rate of 17.4%. The market is forecasted to reach $455 billion by the end of 2023. With 40.7 million freelancers on digital platforms across the globe that generate $193 billion in gross volume and $127 billion in disbursements to freelancers. From a demand point of view, analysts expected the COVID-19 pandemic to have two opposing effects on demand for online gigs, depending on the companies’ behavior towards emergency strategies. It can cause a reduction in demand if companies are cutting their use of Gig Work platforms to protect and show more loyalty towards coworkers. And on the other hand, companies might now favor online workers hired through platforms to cut costs. The iLabour project (the first online gig economic indicator, from Oxford internet institute) shows a fluctuation between both hypotheses. In fact, the pandemic affects gigs’ categories differently. But all faced a serious decrease last year (compared to 2019 & 2018, charts bellow), before recovering to previous optimistic levels. These findings indicate that while the demand clearly soared due to a distancing effect, it also strongly disturbed the market’s seasonal pattern. In fact, in the previous years, demand used to slightly drop during the year-end holiday season, and then rises again from February up to May. Since the pandemic, the market experienced stronger volatility, suggesting that many online gig-workers will need urgent financial support to get through these crises. The Online Labour Index (OLI) [caption id="attachment_5581" align="aligncenter" width="553"] The index is tracking all projects posted on the five largest English-language online labour platforms (70% of the market by traffic)[/caption] The demand of online labour 2018-2020 [caption id="attachment_5582" align="aligncenter" width="522"] Source: Online Labour Index.[/caption] Software development and tech gigs are taking the lead: The market’s rebound is mainly due to software development and tech jobs that are currently most in-demand on Gig Work platforms, such as: Blockchain developers, AI engineers … As the US represents the top player in Gig Economy, OLI’s project presented the evolution of its supply and demand during the first months of 2020, to track the pandemic’s impact. The charts below are showcasing the considerable and fast increase of the software segment, especially during the period where all remaining professions were affected. This category’s wages are also making the difference as they ranged during 2019, in Upwork for example, from $31 USD to more than $115 USD per hour. US contribution to the online labor supply and demand by category According to the Online Labour Index, US is leading by far the category with 37.3% of vacancies posted, followed by the UK and Canada (9% and 7%). While Africa is only representing 3.2%, even though digital skills count for 44% of its demand, which highlights the overall small contribution of the continent. The supply of software development and tech gigs is led by Asian countries (75%) with India and Pakistan at the top. Followed by Europe (17%), North America (3%) and Africa (3%). This category only represents 26% of the African offering. Even if Egypt and Kenya are both in the top 15 suppliers of the online platform market, the technology segment account for only 39% and 8% of their offering, compared to 79% in Russia. The findings above suggest that complete opposed outcomes are possible for each country since the future of business is still unstable. In the best-case scenario, the demand would increase and lead to higher revenue and more job security. However, the number of online workers is also increasing, which might lead to critical competition for jobs, employment uncertainty, and lower earnings. One thing for sure, the coronavirus pandemic aggravates the risky nature of online gig work. Besides the income stability issue, COVID-19 is now highlighting the importance of the overall financial health and unemployment protection. Platforms are conducting positive changes to assure workers’ financial health: It goes without saying that the main services required by gig workers are access to loans and insurance, to manage their income and face future unforeseen situations. For this matter, all stakeholders should partner and work together to increase the penetration of financial products and services. Financial institutions, governments, and gig work platforms all have an important role to play in strengthening this market. Some players, mainly in the shared-driving and food delivery market, have been working on this issue, targeting 2 major solutions: Platforms partnering with financial solutions providers: Income protection insurance and access to loans are 2 pillars for gig workers’ financial health. Unfortunately, financial institutions rarely consider lending to this category. The lack of earning traceability is a serious obstacle. Thereby, some platforms are stepping forward to help track the worker’s employment history: Uber signed a partnership with AXA in 2018 for a Partner protection insurance to protect workers from lost earnings. In Southeast Asia, Grab is partnering with insurance company Chubb that offers medical and accident insurance to drivers. Mobymoney, a fintech start-up, is teaming up with FastJobs to provide an interest-free credit line. Careem has partnered with MicroEnsure to facilitate Careem captains’ health insurance in Pakistan IOTalent collaborates with GigaCover that brings income protection insurance solutions designed for freelancers. Platforms offering new integrated financial solutions: GoGet Malaysia is offering savings, insurance and financial management tools on its platform. Grab offers a package of financial services, including micro-credit, personal accident insurance and insurance against critical illness. Uber launched Uber Care in 2018 to provide easy access to micro-loans, life insurance, and family health insurance to drivers. In addition to platforms and financial institutions’ initiatives, many governments are taking the lead to harmonize and regulate the Gig-Work Platform market landscape. The International Labour Organization’s Global Commission on the Future of Work is discussing the implementation of an international governance system for digital labor platforms. And many countries are currently studying the implementation of an online gig worker’s digital ID, to enhance safety and security, and regulate taxation. If all stakeholders put effort into developing this market, will the online gig work become the next norm? References: The iLabour Project – Oxford Internet Institute 2021 Mastercard study highlights the digital divide that needs to be addressed to power gig economy growth in East Africa Sources: Fabian Stephany, Michael Dunn, Steven Sawyer, Vili Lehdonvirta (2020), “Distancing Bonus or Downscaling Loss? The Changing Livelihood of US Online Workers in Times of COVID-19”, Oxford Internet Institute. Cutean, A., Herron, C., Quan, T. (July 2020). Loading: The Future of Work: Worldwide Remote Work Experimentation and the Evolution of the Platform Economy. Information and Communications Technology Council (ICTC). Ottawa, Canada The UN Capital Development Fund, “The Gig Economy and Financial Health A snapshot of Malaysia and China”, December 2020. Techwire Asia, “Grab upgrades its finance stack with micro-loans for consumers, and more”, August 2020 https://iotalents.com/blog/income-protection-for-freelancers/ Uber, Partner Protection Insurance with AXA XL Technologytimes, “Careem Announces Captain Support Initiatives In COVID-19 Pandemic”, April 2020 The Hindu Businesses line “Uber helps driver partners with Rs 35.6 crore micro-loans”, February 2020 SAS, “Top Trends: Why Tax Administrators Are Adopting New Data and Analytics Strategies”, 2020 ILO, G20 Employment Working Group, “Policy responses to new forms of work: International governance of digital labour platforms”, April 2019
With a valuation of around $1 billion at IPO, Jumia’s listing in 2019 in the New York Stock Exchange has confirmed Africa’s first ‘now failed’ unicorn. The term ‘’unicorn’’ was coined in 2013 by Aileen Lee, a Silicon Valley venture capitalist, to describe a privately held, fast-growing startup. In detail, a unicorn refers to a technology non-listed company, in place for less than 10 years with a valuation greater than or equal to $1 billion. Initially, the term has been used to emphasize the rarity of these startups as only.07 percent of venture-backed startups were able to reach that valuation in a decade or less. Yet, amid an increase in the numbers of startups coupled with an influx of investments, the number of unicorns has significantly increased. To give an illustration, while it took more than four years for the number of unicorns to grew to 250, this number has doubled in the past two years. In Europe alone, the number of billion-dollar companies has almost quadrupled since 2014 with a total value of $ 416 bn, almost five the valuation in 2014. In 2020, despite the economic repercussions of Covid-19, a total of 89 companies gained unicorn status globally, many of which operate in the e-commerce and health care sectors. In other words, what was initially a club of 39, now counts more than 500 members. According to CB Insights and as of January 2021, there are 537 unicorns around the world with a total value of $ 1 636.18 bn. The USA and China are home countries for ~ 70% of global unicorns. Now, what about Africa? With a maturing technology and entrepreneurial ecosystem emerging across Africa, investors’ interest in the African tech ecosystem remained strong in 2020, despite the implications of the health crisis of Covid-19. According to the sixth edition of the annual African Tech Startups Funding Report, 2020 released by startup news and research portal Disrupt Africa, 2020 was a record year for investment into the African startup ecosystem. The report points out that a total of 397 African Startups have raised a fund equivalent to US$701.5 million in the same year, attesting to an increase of 42.7 percent over 2019, compared to $334.5 million raised in 2018. Kenya, Nigeria, and South Africa stand out as the main destinations of capital with 89.2% of the total amount of funds invested on the continent and account the vast majority (77%) of the deals concluded. While surpassing the $700 million mark in funding is lauded by many watchers of the African Tech space, this “achievement” is maybe not significant enough to compensate for the fact that in a global context Africa is still lagging behind, in terms of funds received. It is believed that unicorns indicate a venture capital ecosystem that is ripe for investment, with very few African unicorns it is then safe to assume that investors’ confidence in Africa is not yet matured enough to allow them to give an African startup a $1 billion valuation. According to CB Insights, Africa has generated zero unicorn in the past 2 years. In 2018, only three African unicorns have made it to the list. These three unicorns are Nigeria-based Africa Internet Group (Jumia), South Africa- based Promasidor, and South Africa- based Cell-C. Founded in Lagos in 2012, Jumia operates multiple online verticals across Africa. In 2016 the company became the first African startup unicorn, achieving a $1 billion valuation after a funding that included Goldman Sachs, AXA, Rocket Internet, and MTN. In April 2019, the African e-commerce giant became the first African unicorn to list on the New York Stock Exchange (NYSE). On its opening day, the shares have traded at $14.50, valuing the company at $1.1 Bn. Shortly afterward, the shares have peaked at $49.77, valuing the company at nearly $3.8 billion. However, and in light of allegations of fraud and concealed losses, among others, Jumia’s shares sunk hitting an all-time low to the $2 range in the following 12 months of its IPO. This has been said, Jumia serves as a good reminder that unicorn status does not protect a company from a sudden drop in its value nor is a guarantee of the performance of the company. For some African investors and startup owners, the African ecosystem is unparalleled internationally, as it comes with its own complexity and challenges, hence the ambiguity of forcing international success examples on it. They suggest instead letting African startups come up with their own success metrics that would better translate to the African marketplace. As explained by Xavier Helgesen, in markets where there is a venture capital shortage, macroeconomic uncertainty, a lower tolerance for risk, less acceptance of entrepreneurship as a career, or limited enabling infrastructures and policies, the Silicon Valley model fails. He goes on to suggest that instead of African companies striving to become the likes of Silicon Valley unicorns, they should instead focus on raising camels- organizations that can capitalize on the opportunity but also can survive on drought. The same idea has been reiterated by the Senegalese Venture capitalist Marième Diop. Silicon valley’s unicorn IPO model might not be right for African startups as these, face a vastly different macro business environment. Mrs. Diop suggested lowering revenue expectations and have African startups list on local exchanges to raise capital from IPOs. In this way, Africa can count more “gazelles” than unicorns “abroad”. A gazelle at home could be a company valued at $100 million or more and generating revenues of $15 to $50 million, according to Diop. In conclusion, be it unicorns, camels, or gazelles, African startups need to take advantage of the opportunities currently present to them (e.g. the rise in digitization, the increase in investment funds,…) and rewrite the rules to better align with their reality. Again, while African countries can use international benchmarks for inspiration, they should maybe refrain from making them a blueprint for future developments. Nouha Abardazzou - Senior Associate Sources: https://www.cbinsights.com/ https://www.cnbc.com/2020/01/23/era-of-mega-funded-money-losing-unicorns-is-coming-to-an-end.html https://www.forbes.com/sites/korihale/2020/04/23/jumia-africas-failed-unicorn-is-hemorrhaging-millions/?sh=670c187b64e4 https://asia.nikkei.com/Business/Startups/Unicorns-surge-to-500-in-number-as-US-and-China-account-for-70 https://www.boursorama.com/boursoramag/actualites/start-up-les-licornes-francaises-sur-le-devant-de-la-scene-1862f79b14758c16746c95f65adcbeb5 https://ventureburn.com/2019/12/10-reasons-why-2019-was-a-hot-year-for-africas-tech-startup-opinion https://www.howwemadeitinafrica.com/camels-not-unicorns-how-entrepreneurs-in-africa-are-rewriting-the-rules-of-silicon-valley/66953/ https://blog.usejournal.com/top-10-african-startups-to-watch-in-2020-341622c30928 https://outline.com/BftRtGhttps://disrupt-africa.com/2021/01/21/african-tech-startup-funding-passes-700m-in-record-breaking-2020/ https://zoom-eco.net/a-la-une/afrique-les-startups-africaines-ont-leve-7015-millions-usd-en-2020-soit-un-taux-daugmentation-de-427/ https://www.theguardian.com/business/2020/jul/17/african-businesses-black-entrepreneurs-us-investors
The second-largest sector after agriculture in Africa is the fashion and textile industry with an estimated market value of $31 billion in 2020 and growing every year (1). Fast fashion is a marketing and manufacturing model where clothing moves instantly from the runway to retail stores. Fast fashion captures the latest fashion trends and styles and manufactures clothing immediately to satisfy demand, season after season. It is able to do this by optimizing certain aspects of the supply chain to produce designs quickly and inexpensively. Marketing teams then target mainstream consumers, persuading them to buy the latest collections. These items are often set at a low price, making them attractive to a wide base of consumers encouraging them to replace one season’s garments with the next (2). Fast fashion produces around 52 micro seasons instead of the traditional 2 per year, increasing demand at an exponential rate. (12). Examples of fast fashion retailers include H&M, Zara, Uniqlo, Primark, Topshop, and Next that produce massive amounts of clothing very efficiently (3). But what is the fast fashion industry doing in Africa? What opportunities does it bring to the table and what risks does it present to this continent? Fast fashion can contribute positively to the African economy. Within Africa, the entire textile/clothing sector is already the second-largest employer after agriculture (4). In Kenya, data shows that every job in the garment sector generates 5 other auxiliary jobs (4). With shorter shipping routes to European and USA markets, Africa also has an important strategic advantage over Asian manufacturers. In fact, it takes just three weeks for a shipping container to travel from West Africa to Western Europe and a month to travel to the East coast of the United States. Africa also benefits from lower (or comparable) labor costs to Asia and apparel manufacturers in many African countries offer duty-free deals (or reduced tariffs as much as 30% compared to Asia) when entering European, American, and Australian markets (4) giving Africa a competitive edge over its Asian counterparts. Clothing and textiles represent about 7% of world exports, and apparel production is. For instance, Ethiopia is already a destination for apparel manufacturing such as Guess, Levi’s, H&M, which have shifted their production therefrom China (13). According to the Oxford Committee for Famine Relief (OXFAM), if Africa, East Asia, South Asia, and Latin America were each to increase their share of world exports by 1% the resulting growth could lift 128 million people out of poverty (4). The torch of the “world’s low-cost manufacturer”, long-held by China, is set to pass to Africa in the very near future (5). China has its sights set on shifting the focus of its economic system towards creating a significant domestic market with greater consumption capacity. For this reason, it is trying to go beyond a model that hinges on cheap labor. The African economy instead is still growing by 10% annually, an exception in the last decade, making it an attractive destination for foreign investors (5). In this context, Chinese firms are now looking to delocalize their production, without surrendering control of the supply chain, by seeking out, as European and American firms have done before them, low wages and suitable infrastructure (5). In Africa, the potential for attracting these investments is considerable, owing in part to wages being as low as 60-70 dollars per month in countries like Ethiopia (5). The fast fashion industry moves very quickly, and African countries are also interested in attracting this industry as it provides an opportunity for much-needed economic diversification. Countries like Ethiopia are a good example of the possible synergies to be had. There is a great deal of investment flowing into the country because of its lower wages and proper infrastructure, with good access to ports, a young and motivated workforce, and labor market governance that is favorable to investors. The country is also in the same time zone as Europe and is conveniently situated geographically with respect to target markets. Other countries with high potential include Nigeria, Ghana, and Kenya. Nigeria, Africa’s largest oil producer, recently scrapped its textile import ban, driving renewed interest from international fashion and apparel retailers. The country is currently home to leading brands such as Levi’s, Mango, Nike, and Swatch, which have set up stores in the Palms Shopping Mall in Lagos (7). These are all countries where increased macroeconomic stability has been conducive to the influx of capital (5). “Western companies were ignoring the prospects of the continent of Africa, especially with fashion retailers. Some not shipping there at all, others taking 21 to 30 days […]” (6). Yet, that will quickly change as they begin to grasp the opportunity that Africa offers (6). On the other side of this coin is the deleterious environmental impact of this production model. According to statistics published by the United Nations Environment Program and the Ellen MacArthur Foundation, the fashion industry is responsible for 10% of annual global carbon emissions, more than the aviation and shipping sectors combined (8). The industry’s use of water and energy has marked it as one of the planet’s biggest polluters. Climate change is already having a negative impact on food security and public health (9). In addition, Africa faces the unique problem of being the last link of this industry’s value chain: 45% of all donated clothing globally ends up in the hands of for-profit brokers, with 70% of that ending up in Africa (10). Kenya alone, for instance, imported a whopping $133 million worth of worn clothing from Canada, Europe, and China in 2017, practically wiping out their homegrown textile industry (10). As purchasers attempt to resell their items, they are often unaware of what products they are receiving, or even their quality. If the quality is sub-par, the materials get tossed in landfills losing traders lots of money and creating huge piles of trash. This means that developing countries are importing more waste textiles than the cotton they export and are therefore losing major profits– suffocating both their economies and their environments (10). Farmers in Burkina Faso, the largest cotton producer in sub-Saharan Africa, have identified that the cotton they produce seems to only gain real value once it is exported to outside countries, like China, and turned into fabrics, threads, and garments. Those garments are then sold globally (in stores like H&M, Topshop, or Zara) used, donated, and end up back in Africa, only to get thrown away. As calls for corporate consciousness begin to rise, initiatives for change are emerging. Consumers have a greater awareness of issues like sustainability. This has resulted in organizations, like the United Nations, considering negotiations to reform fast fashion’s destructive manufacturing process (10). Indeed, Africa looks like a promising market for fast fashion; however, a new improved system is needed. A version that is better than the current one where the production model is more sustainable and that supports a circular economy rather than a linear one. Reform is needed to save not only the environment, but also the people. Sara Yamama - Research Analyst Sources: https://intpolicydigest.org/2020/11/28/fashioning-with-waste-turning-fast-fashion-into-an-opportunity-in-africa/ https://www.thechicselection.com/fast-fashion-its-environmental-impact https://kitengestore.com/positive-impact-made-measure-fast-fashion/ https://www.fashionafricasourcingtrips.com/about/emerging-market-facts/ https://www.aspeninstitute.it/en/pin/africa-set-be-new-fast-fashion-factory-interview-maurizio-bussi https://wwd.com/fashion-news/fashion-features/bringing-affordable-fast-fashion-to-africa-1202775707/ https://www.businessoffashion.com/articles/global-markets/global-briefing-could-africa-be-the-next-frontier-for-fashion-retail https://www.fashionatingworld.com/new1-2/african-fast-fashion-may-swamp-ethical-fashion https://un-ruly.com/how-that-zara-top-you-bought-is-hurting-africas-economy/ https://www.unisa.ac.za/sites/corporate/default/Colleges/Agriculture-&-Environmental-Sciences/News-&-events/Articles/Fast-fashion-is-the-new-plastic
According to a new report by Novartis Foundation and Microsoft, investment in data and artificial intelligence (AI) will be a key tool for improving health systems during and after the COVID-19 pandemic in Africa. Released on September 9, 2020, the report "Reimagining Global Health through Artificial Intelligence: The Roadmap to AI Maturity"[1] concludes that low-income countries may soon outperform high-income states in the adoption of AI-based health technologies. It also points out that African countries could be the fastest adopters of AI-based health technologies due to the lack of existing systems. However, it also warned that these countries stand to lose the most if governments don’t seize this opportunity and invest more in AI. According to the 2020 Partech report, the health technology sector attracted 189 million dollars to Africa during 2019 which is equivalent to 9.3% of the total amount allocated, all sectors combined, to startups operating in Africa. This amount represents a growth of +969% compared to 2018. Hence, the health technology sector is not only growing but also mobilizes significant financial capital. Strengths driving AI adoption in Africa Technologies such as mobile trading platforms, e-banking, e-commerce and even Blockchain applications have often been adopted faster and more comprehensively in low and middle-income countries than in high-income countries, and health technologies are likely to follow the same trend, the report said. In addition, a major advantage for low-income countries is their exemption from the difficulties now faced by rich countries. Rich countries already have different types of data hosted by systems that are not always able to communicate, whereas they need to be interoperable[2] to be "effectively" used for AI. The opportunity therefore lies in the fact that low-income countries, not yet having these different systems, can once and for all develop a single ecosystem so that all data systems have the same structure and are interoperable. However, there are several constraints and challenges that must be addressed by the African continent in order to take advantage of the emergence of the digital in general and AI in particular in the health system. Pain points hindering AI adoption in Africa The lack of medical personnel is the primary challenge facing the African continent. Currently, sub-Saharan Africa accounts for 12% of the world's population but faces 25% of the world's disease burden, while housing only 3% of the world's health workers. This is expected to worsen with a projected global shortage of health workers estimated at 18 million by 2030. In addition, the lack of data storage infrastructure available to health facilities represents a barrier to the rapid adoption of AI in the health sector. Thus, African governments need to put in place policies that promote data acquisition readiness and investment in AI development infrastructure such as data centers. AI as a driver for rebuilding health systems Many African countries are poorly prepared to deal with a new emerging disease such as Covid-19, in addition to the current burden of infectious diseases and the ever-increasing tide of chronic diseases. AI is therefore coming to rethink archaic health systems by shifting from reactivity to proactivity and then to prediction and even prevention. To successfully implement AI, a whole sustainable ecosystem must be developed to ensure equity and access to healthcare services for all. As healthcare systems rebuild during the pandemic, technological innovation must be at the heart of the agenda. Below are examples of companies leveraging the power of AI in the health sector across several African countries. This shows that the continent is building and developing a strong AI startup ecosystem for the healthcare sector. Nigeria: Nigerian startup Aajoh uses artificial intelligence to help individuals that send a list of their symptoms via text, audio and photographs, to diagnose their medical condition. The business was launched in 2015 and allows personalized medical diagnosis and treatment through predictive analytics. Founded in 2012, Ubenwa developed an AI app that analyses a baby’s cry to give warning signs of asphyxia, which is the third leading killer of infants worldwide. This machine learning tool provides instant diagnosis of birth asphyxia based on 1,400 pre-recorded baby cries that are analyzed by looking at factors such as amplitude and frequency pattern. Ghana: Founded in 2016, Minohealth introduced an innovative Medical Health System to democratize duality healthcare with AI for medical diagnostics, Cloud Medical Records system for hospitals, health ministries and patients, and big data analytics for health. Kenya: AfyaRekod is a digital health data platform that focuses on the patient and allows health facilities to capture, store, have real-time access and mobility of the patients’ health data. Developed as a patient driven platform, the patient maintains the sovereign right of ownership to their health data. The platform leverage AI and various blockchain modules to make insightful data driven decisions that allows doctors to provide better healthcare for patients. Rwanda: Though headquartered in California, Zipline operates in Africa leveraging drowns in order to to deliver blood to transfusion centres in remote areas. The team are delivering fresh blood and medicines to hard-to-reach rural areas across Rwanda daily. Zambia: Founded in 2017, Dawa Clinic is an Artificial Intelligence-based web-mobile platform which is aimed at facilitating remote healthcare service for pregnant women and early mothers. The App works with a self-monitoring kit that empowers mothers to receive remote maternal health. Through the App, mothers are able to monitor parameters like blood pressure, Urinary Tract Infections (UTIs), blood sugar levels, and other pregnancy-related complications. The information is wired remotely to a doctor for early intervention in case of any complications. Tunisia: SPIKE-X is a startup specialized in AI offering intelligent software packages that provide decision support solutions allowing to better understand, predict and influence human decision making of large groups and populations. SPIKE-X is a leader in innovative quality healthcare, e-Health and m-Health, and, Intelligent Security such as Intrusion Detection System, Access Control, Automatic Number Plate Recognition (ANPR) and Retail Analytics. For the healthcare sector, the company’s solutions help in Breast Cancer Detection, Skin Cancer Detection and Alzheimer Disease Classification. Examples of AI use during the COVID-19 era Rwanda: Rwanda probably has the most connected health system in Africa. The country has a virtual consultation service with over two million users, one third of the adult population. In March 2020, the Rwandan government and the private actor Babylon Health, operating in the East African country under the name babyl, entered into a ten-year partnership to give every Rwandan over the age of 12 access to digital health consultations. The consultations are paid for by the Mutuelle de Santé, the government's community health insurance scheme. The new partnership will also see the introduction of a platform for triage and verification of symptoms, powered by AI. Guinea: In Conakry, Tulip Industries, a startup created by Mountaga Keïta and specializing in technological innovation, is another example. Named "Health Scan", the startup has designed this tablet able to detect the symptoms of Coronavirus. The device is equipped with a thermal camera and sensors that measure a patient's body temperature, blood oxygen level and heart rate. According to the designer, Health Scan helps to better target the hottest part of the body and to obtain more reliable data than the thermo flashes commonly used on the forehead. This information is stored in a local database and artificial intelligence comes in to federate this information and try to draw inferences to help doctors better determine if the patient needs respiratory assistance upon arrival at a health center. Kenya: Launched in 2017, Tambua Health arms medical practitioners with an app that helps doctors and health practices spend less time and money diagnosing and treating cardiopulmonary diseases using lung and heart sounds analysis through machine learning. During the covid-19 pandemic, Tambua Health invents a patent-pending technology called T-sense. T-sense generates images of lungs by detecting the vibration of sound as air moves in and out of the lungs. It is able to do this by using sensor arrays placed on the back of the patient. With these sensors, T-sense can generate dynamic images of the lung like this using sound imaging. Using spatial distribution algorithms that have been trained from the company's proprietary database of lung sound images, Tambua's T-sense can detect healthy and unhealthy lungs with a high degree of accuracy. Egypt: Rology is a startup of the AUC Venture Lab (V-Lab), Egypt’s first university-based accelerator. Established in 2017, it is an on-demand teleradiology platform solving the problem of radiologist shortages and high latency in medical reports through artificial intelligence by remotely and instantly matching cases from hospitals with the optimum radiologist. Rology operations follow three main steps: upload, match and report. the hospital uploads the patient’s medical images onto the system. Based on the first auto analysis, Rology then matches the scan with the optimal radiologist, depending on availability and subspecialty. Afterward, the radiologist writes the final diagnostic report and sends it back to the hospital through a quality control process. During the COVID-19 pandemic, Rology helped solving the problem of shortage of radiologists, by proposing a diagnosis of Covid-19. In short, artificial intelligence will help bridge the gap in Africa's health systems. However, its use cannot substitute for the development of effective health infrastructures and the setting up of strict systems and protocols for examination and monitoring. It is also important to keep in mind that secure and privacy-friendly data governance must be part of ensuring a sustainable AI-based infrastructure. Finally, the countries that will fare best will be those that combine a good level of medical infrastructure with innovative technological solutions ! [1] The report "Reimagining Global Health through Artificial Intelligence: The Roadmap to AI Maturity" was authored by the Commission on Digital and AI in Health, created in 2010 by the International Telecommunication Union (ITU) and UNESCO to expand broadband access to accelerate progress towards national and international development goals, and jointly led by the Novartis Foundation and Microsoft. [2] Data interoperability is the ability of systems and services that create, exchange and consume data to have clear, shared expectations for the contents, context and meaning of that data. 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The discussion around 'ESG standards and regulations' has become pivotal in the realm of finance, steering a significant shift in how investments are approached Investors have been increasingly pouring money into ESG funds, and asset managers have taken notice and responded to this trend by embracing ESG factors within their strategies to attract more inflows, balancing ESG requirements with traditional risk and reward considerations. Despite a lack of legal requirements from policy makers, stakeholders, both individual and institutional, have been seeking greater clarity regarding the impact of their contributions. They are keen to understand not only “if” asset managers are committing to ESG, but proactively asking questions about managers’ stewardship approach. What is ESG Standards? [caption id="attachment_5144" align="aligncenter" width="687"] Asset management firms manage funds for individuals and institutions by making investment decisions on their behalf while considering their unique circumstances, risk appetite and preferences[/caption] ESG stands for Environmental Social and Governance and refers to the three key factors when measuring the sustainability and ethical impact of an investment. Environmental factors include climate change, greenhouse gas emission, waste, pollution etc. Social include human rights, labor practices, talent management, product safety and data security. Governance refers to a set of rules or principles defining rights, responsibilities, and expectations between different stakeholders in the governance of corporations like board diversity, executive pay, and business ethics. ESG Fund Flows The year 2019 has been a memorable one for ESG investments as it saw a significant jump in sustainable fund flows. In the US, for instance, investors poured a record $21 billion into socially responsible investment funds, almost quadrupling the rate of inflows in 2018. In Europe, sustainable fund flows reached €120 billion in 2019, nearly triple the previous year’s amount which stood at €44.8 billion. [caption id="attachment_5156" align="aligncenter" width="626"] European sustainable fund inflows (€ billion)[/caption] To illustrate ESG’s rising popularity among investors, Legal & General Investment Management “LGIM”, the UK’s largest asset manager with £ 1.2 trillion under management*, has more than doubled its business in 2019 due to its excellent ESG track record. The company’s assets under managements were boosted by a £37 billion mandate from the Government Pension Investment Fund of Japan, the world’s largest retirement scheme (more than $1.5 trillion in assets*) and a vocal advocate of responsible investing. LGIM’s CEO Nigel Wilson stated: “ESG is really contributing to our success... the brand is travelling very well.” Industry Response While the degree to which asset managers have embraced this responsibility varies widely, we see growing evidence that some are taking this role seriously and using their influence to encourage greater sustainability. For instance, in 2019, BlackRock, the biggest money management firm in the world with more than $7 trillion under management*, announced its intention to start divesting from companies that get more than 25% of their revenue from coal production by mid-2020. (* figures are as at 31st December 2020) [caption id="attachment_5158" align="aligncenter" width="628"] A growing number of asset managers have voluntarily signed and embraced the United Nation’s Principles for Responsible Investment “UN PRI”[/caption] Regulatory Challenges: On much of this, the investment industry has been running ahead of the regulator, meeting market demands for a greater focus on ESG. However, the market has not been able to agree on common definitions, resulting in fragmentation. Ultimately, regulators will need to intervene. Investor Sentiments Investors are sending strong signals that they are unsatisfied with asset managers ESG criteria and disclosures. For instance, big names such as Morgan Stanley and Vanguard have been denounced for their “sin” stocks. Morgan Stanley Global Brands Fund had 6.83% in Philip Morris, its third largest holding, compared to 0.29% in the benchmark. The allocation comes despite the fact that the investment policy explicitly states the fund incorporates ESG considerations into its approach. The Vanguard SRI European Stock Fund did not have any tobacco exposure but was also criticized for its 5.7% allocated to alcohol, gaming and defense stocks. When questioned about their ESG criteria, some asset manager respond that they want to maintain a “seat at the table” with companies that do not score well on ESG metrics, that ESG does not equal ethical investment, or that their specific methodology does not reject a given product. Some investors might question such approaches, but from managers’ point of view, they carry potential for gains, both environmentally and financially. A Vanguard spokesperson said: “There are different flavors to socially responsible investing. Investors should look closely at a fund’s methodology and exclusion policy to ensure it matches their beliefs.” ESG Policies In their current form, ESG policies seem to be lacking two core elements: first, a universal consensus on what constitutes an ESG investment and a way for asset managers to assess ESG compliance in their portfolio; and second, reporting on ESG is still non-coercive and even if it were, without a proper framework, these policies remain inefficient. European Regulatory Landscape To demonstrate the ineffectiveness of current regulations, we turn to the EU, leaders in ESG regulations, to get an idea of current world standing in ESG policies. [caption id="attachment_5161" align="aligncenter" width="700"] Europe has been leading the race in sustainable finance regulation. The progress on the matter started immediately after COP 21.[/caption] In terms of ESG compliance, the EU has been working on creating ESG and climate change standards by deploying a Technical Expert Group on sustainable finance (TEG). However, most guidelines are still voluntary, non-legislative and unbinding for now. The current proposals include: - An EU green bond standard: The TEG proposed that the Commission creates a voluntary, non-legislative EU Green Bond Standard to enhance the effectiveness, transparency, comparability and credibility of the green bond market and to encourage the market participants to issue and invest in EU green bonds. In 2019, the TEG published a report on EU Green Bond Standard. - EU taxonomy: On June 2019, the TEG published a report on EU Taxonomy that sets out the basis for a future EU taxonomy in legislation. However, this report only tackles the climate change area of ESG. - Benchmark: The TEG has been working on recommending minimum technical requirements for the methodologies of the “EU Climate Transition” and “EU Paris-aligned” benchmarks, with the objective to address the risk of greenwashing (greenwashing refers to marketing that portrays an organization’s financial products, activities or policies as producing positive environmental outcomes when it is not the case). As part of its mandate, the TEG also worked on recommending the alignment with the Paris agreement and ESG disclosure requirements, including a standard format to be used to report such elements. Nonregulatory bodies have also been looking for solutions to help companies audit green conformity and provide companies with step by step instructions , such as the UN PRI. Signatories of the UN PRI recognize the potential impact of ESG issues on the performance of investment portfolios, they acknowledge that in order to be effective fiduciaries, they must integrate these factors into their investment analysis, seek appropriate disclosures, and incorporate ESG issues into their ownership and voting practices. As per ESG reporting, it is also still voluntary in most EU countries except for France which has made it mandatory for asset managers and institutional investors to report on how ESG are incorporated in their investment and risk-management processes with specific mention on climate change considerations (Article 173 of French Law on energy transition for green growth), and the Netherlands, where pension plans are required to disclose in their annual report if ESG criteria are incorporated. Reporting guidelines were only published recently in 2019 by the TEG and they provide non-binding advice to help disclose climate change mitigation investments and activities. In order to express their frustration, 631 institutional investors with more than $ 37 trillion in assets organized the largest ever joint call for climate change to governments during the 2019 COP 25 in Madrid. These investors wrote and signed a petition reiterating their full support for the Paris agreement and urging all governments to implement the actions that are needed to achieve the goals of the Agreement, with the utmost urgency. Conclusion It has become clear that regulations that govern ESG are still insufficient. The introduction of such regulations will be beneficial threefold: First for investors as they deserve more transparency, second for asset managers to simplify the current disclosure standards that are both confusing and expensive for them and to renew their trust with their clients, and third and most importantly for the greater good of society and the planet. 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New business surges at Legal & General Investment Management, Financial Times, March 4th 2020 Regulating the growth of ESG Investing, A look at the landscape of ESG regulation around the world, across three main areas, Morningstar, June 3rd, 2019 https://www.morningstar.com/blog/2019/06/03/esg-regulation.html The Evolving Approaches to Regulating ESG Investing, Morningstar, June 3rd 2019 The Pension Protection Fund (Pensionable Service) and Occupational Pension Schemes (Investment and Disclosure) (Amendment and Modification) Regulations 2018, October 1st 2019, http://www.legislation.gov.uk/uksi/2018/988/regulation/4/made The Pension Protection Fund (Pensionable Service) and Occupational Pension Schemes (Investment and Disclosure) (Amendment and Modification) Regulations 2018 full PDF, made 10th September 2018 http://www.legislation.gov.uk/uksi/2018/988/made/data.pdf US Forum for sustainable and Responsible Investments, https://www.ussif.org/index.asp