Business Strategy

Creating business presentations requires careful consideration, especially for big consulting firms. Typically, consulting PowerPoint presentations or decks are used for two reasons: presenting information and delivering important documents. Often, this leads to content-heavy presentations that aim to balance thoroughness with ease of understanding. So, is it possible that despite the apparent overcrowding of consulting presentations, there is a systematic approach or reasoning behind it? In this article, we investigate what makes these types of presentations effective despite containing a lot of information and lacking a minimalist aesthetic. We will explore the reasons behind extensive blocks of text and data on slides and whether they help deliver impactful presentations. Two Types of Business Presentations Presentations play a vital role in the realm of business, taking on varying formats and serving a number of objectives. Their primary goal is to tell a story that informs, activates, inspires, persuades, etc. while effectively conveying clear takeaways, presenting compelling insights, and captivating the audience through an engaging narrative. We distinguish two styles of business presentations that hold significant importance and relevance: Steve Jobs style The first style is commonly referred to as the "Steve Jobs style." These large keynote presentations, often seen at events, conferences, and investor pitches, involve the speaker standing on a stage and presenting to a large audience, for instance, to introduce a new product being launched. So, what sets these presentations apart? Well, they often feature minimal visual elements, with only a few pictures or words on the slides. What is specific here is that these presentations are intended to be presented. They are designed for a large stage, emphasizing the need for a presenter to stand in front of the screen, effectively explain and provide context, and elaborate on the content displayed. It’s an example of one-way communication, and typically the presenter has a lot of credibility (CEO, Head of product line, etc.). Keynote Example: Steve Jobs Introduces The iPhone (Apple) Of course, Steve Jobs' style has become well-known and is often considered the standard for business presentations. However, this style is quite different from the consulting style of PowerPoint presentations. If this seems obvious to you, you may wonder what the consulting style of presentation design looks like. Consulting style Unlike conferences or keynote decks that tend to place emphasis on creating an attractive visual representation, consulting presentations prioritize substance over style. The primary goal is to offer valuable information and insights rather than focusing solely on creating a creative design and an impressive visual experience for the audience. Typically, consulting presentations are created for more formal audiences, for instance, C-level executives or board members of a company or organization. These presentations are characterized by their heavy content and extensive use of data and supporting details. And indeed, what's probably also very interesting is that these presentations are often not even presented; they are well-structured and self-explanatory. So, consulting presentations can be used for both presenting information and delivering essential documents. Here’s how consultants use them: First, to present information - Consultants rely on PowerPoint decks to clearly convey complex ideas, findings, and recommendations to their clients. The presentation includes slides with visually appealing charts and graphs showcasing, for example, market trends, competitive analysis, consumer insights, etc. The consultants use these slides as visual aids to guide their discussion, explaining each slide in detail, highlighting key points, and answering questions from the client. In addition, consulting PowerPoint decks serve as comprehensive deliverables that encapsulate crucial information, such as reports or recommendations, which can be shared with clients or internal teams. These decks are self-explanatory and include comprehensive plan proposals. They allow stakeholders to review the plans at their own convenience, without the need for a presenter. The slides within this presentation should be thoughtfully organized, inclusive of distinct headings and concise bullet points, facilitating effortless navigation even when reviewing key takeaways independently. So, how does the structure of these slides help the client process a significant amount of information as efficiently as possible? Effective consulting presentation A consulting presentation tends to have a lot of information and data, and it can be hard for clients to grasp the key insights right away. So, when building consulting slides, it’s especially important to make sure they’re structured in a way that makes them clear, insightful, and engaging. The goal is to make the presentation as easy as possible for the audience to understand and guide them through the different layers of the slides so they can process a lot of information as efficiently as possible. Effective consulting slide structure An essential aspect of any consulting slide is its ability to effectively communicate information, and a key way to accomplish this is through a logical structure. The design composition of the slide should not provide a sense of disorder or imbalance and make the viewer solve a subconscious problem. According to Gestalt theory, the human brain subconsciously interprets visuals in a very specific way so that we can make use of them. Generally, people read slides from top to bottom and left to right, so organizing the content in a way that supports this flow is crucial. Starting with a clear title allows the audience to grasp the overall message of the slide, while the subsequent details and supporting points provide additional context. So, if someone just reads the slide titles and ignores all the content, they should get the gist of it. And at the same time, they have all the details in one place if they need them. Typically, consulting slides are created to convey a story, with each slide delivering a unique message, and the most effective presentations have a narrative thread that runs through the titles of the slides. Thus, weaving a compelling narrative is the cornerstone of delivering an effective consulting presentation. All consulting firms employ two important concepts, the SCQA Framework and the pyramid principle, which transform dry presentations into persuasive stories with clear narratives: The SCQA framework Which stands for (Situation, Complication, Question, Answer), allows you to craft a story around the information you are trying to present. It provides context and explains to the audience why they should care. This framework is particularly useful when consultants are using presentations to present information. The Pyramid principle Involves communicating information by starting with the main idea and then providing supporting details. This approach ensures that the audience understands exactly what you are trying to convey and how you have reached your conclusions. The pyramid principle is highly effective when consultants are using presentations to deliver important documents. 5 Secrets for Creating Effective Consulting Slides Every slide in a consulting presentation needs to be self-explanatory. And this, of course, requires a higher level of detail, often a higher level of text, for these presentations to stand up for themselves. The important thing is that the insights are clear and interesting, even if there is a lot of information and detail. We will unveil five secrets to help you construct compelling consulting slides that tell a story, provide key takeaways, and engage your audience from start to finish. Secret 1: Nail the Title The title of your slide plays a critical role in summarizing its content and key takeaways. It should encapsulate the main message and provide a glimpse into the insights it offers. By crafting concise and attention-grabbing titles, you set the stage for the audience to understand the slide's purpose and capture their interest right away. Secret 2: Guide the Reader To effectively guide your audience through your presentation, follow the pyramid principle. Start with the highest level of the idea or main concept and gradually delve into supporting details. This logical progression allows the audience to comprehend your message effortlessly, ensuring a smooth flow of information. Secret 3: Add Visuals Visual elements are powerful tools for enhancing the processing speed of information. Incorporate charts, graphics, icons, or relevant pictures to bring your data to life in a creative and visually appealing way. These visuals provide a mental boost, making it easier for your audience to grasp complex information quickly. Secret 4: Annotate Your Data To highlight the insights within your slide, employ annotations that guide the audience's attention. Annotations can include color coding, arrows, boxes, or text callouts, drawing focus to important points and key takeaways. Go beyond presenting raw data by interpreting and explaining its significance. Show the audience what the data on the slide means and provide context to help them connect the dots. This secret is what is going to make the difference between a good slide and a great slide. Secret 5: Clean and Format Slides Designing visually appealing slides involves two crucial steps. Firstly, add labels, navigators, sources, footnotes, and other relevant details to ensure transparency and credibility. Secondly, meticulously align and format each element of your slide, verifying that everything is properly placed and visually harmonious. This attention to detail elevates the overall professionalism and impact of your presentation. To sum up, consulting presentations serve a specific purpose in the business world, focusing on delivering valuable information and insights rather than prioritizing visual aesthetics. These content-heavy presentations are often used to present complex ideas, findings, and recommendations to clients, as well as serve as comprehensive deliverables. Despite their extensive use of data and text, effective consulting presentations can be structured in a way that allows clients to understand and process information efficiently. The key to creating an impactful consulting presentation lies in its logical structure. By organizing slides with clear titles and supporting details, consultants can guide the audience through the information effectively. Weaving a compelling narrative throughout the presentation enhances its effectiveness, utilizing frameworks such as the SCQA framework and the pyramid principle to transform dry presentations into persuasive stories with clear narratives. By crafting presentations that are self-explanatory, well-structured, and insightful, consultants can effectively deliver valuable information, engage their audience, and meet the unique needs of formal and discerning stakeholders.   Sources:  https://www.theanalystacademy.com/consulting-slides-vs-regular-slides/#:~:text=Rather%20than%20just%20putting%20a,other%20parts%20of%20the%20slide https://neilpatel.com/blog/present-like-steve-jobs/#:~:text=A%20Steve%20Jobs%20presentation%20followed,topic%20longer%20than%20ten%20minutes https://www.toptal.com/designers/ui/gestalt-principles-of-design#:~:text=In%20the%20simplest%20terms%2C%20gestalt,a%20series%20of%20disparate%20elements. https://medium.com/lessons-from-mckinsey/the-pyramid-principle-f0885dd3c5c7 https://corporatefinanceinstitute.com/resources/career/scqa/ https://www.theanalystacademy.com/how-to-create-effective-presentations/  

Studies indicate that empowering women for equal participation in the global economy could add up to $28 trillion in GDP growth by 2025. Many global indicators, such as the growing prevalence of female entrepreneurship, enable the assessment of women’s empowerment levels in both developed and developing economies. Observing the growth in the number of female entrepreneurs is a great sign of women’s empowerment Female entrepreneurship in developing vs. developed countries The more women have access to equal opportunities, the more developed a country can be, and the easier it is to reduce any existing inequalities that can slow down the economic growth of a nation. To determine disparities in female entrepreneurship, 2020 data from the World Bank was used to compare the number and characteristics of firms among benchmark countries using the share of female entrepreneurship among the firms surveyed. The countries chosen for this observation are Egypt, Tunisia, Morocco, the Netherlands, Belgium, and Finland to show where developing countries stand in comparison to more developed countries. As shown in the pie chart below, Finland and Belgium, both developed economies, appear to have the highest number of firms with female participation in ownership. On the contrary, Egypt has the lowest number of firms with female participation in ownership. The World Bank Enterprise survey shows that 44.2% of firms surveyed in Finland are owned by women, compared to 5.2% of firms surveyed in Egypt. These results show the disparities in the progress made toward the empowerment of active females in the labor market. Another important point to note is the fact that Egypt, Tunisia, and Morocco all have lower shares of female entrepreneurship compared to Finland, the Netherlands, and Belgium. In other words, it can be pointed out that economic and social development play a vital role in increasing the number of female entrepreneurs and encouraging more women to start their own business ventures.   Figure 1: Percentage of firms surveyed with female owners [caption id="attachment_8472" align="aligncenter" width="542"] Source: World Bank Enterprise Survey 2020[/caption] In many areas, women lack access to an entrepreneurial environment, social and institutional support, equal educational opportunities, and financial support programmes. Digging deeper, the literacy rates in the selected countries can show the knowledge and human capital gap between developed and developing countries.   Figure 2: % of females who can both read and write [caption id="attachment_8473" align="aligncenter" width="490"] Source: Global Gender Gap Report 2020 - The World Economic Forum[/caption] Based on that, education levels and enrollment rates directly impact women’s economic participation rates. This can be seen in the graph below:   Figure 3: Female Labor Force Participation Rates [caption id="attachment_8474" align="aligncenter" width="492"] Source: World Bank[/caption] The idea here is to show the correlation between female entrepreneurship, education levels, and labor force participation rates. The two chosen indicators prove the positive relationship between education, female labor force participation rates, and female entrepreneurship. This highlights the importance of policies aimed at increasing literacy rates and female economic participation, which can eventually help reduce the gender gap in entrepreneurship rates in both developed and developing countries. In addition to the observed disparities in female entrepreneurship in North Africa, it is essential to recognize the dynamic landscape in Sub-Saharan Africa. The region has witnessed a notable rise in female entrepreneurship, showcasing the resilience and innovation of women entrepreneurs. As efforts to empower women economically continue, the evolving narrative in Sub-Saharan Africa contributes to the global momentum towards gender equality and inclusive economic development. Lessons to learn from policies implemented in developed countries As a result of more women joining the workforce, public policy has focused on supporting women’s entrepreneurship since the 1970s. Since then, both developed and developing nations have adopted common policies and programs aimed at promoting women's entrepreneurship. Despite substantial improvements in aiding women to overcome barriers to starting their own enterprises and working for themselves, women continue to face challenges, demanding further and more inclusive public policy action. Developing countries can observe and track effective policies implemented in developed countries that would enable the increase of female economic participation and, more importantly, female entrepreneurship. The gender gap in entrepreneurship can be reduced with the presence of profound measures and support program's targeted at encouraging women’s economic participation. Examples of successful policies include: Finland: The Equality Program includes providing loans to small companies, counseling, training, and establishing an entrepreneurs' mutual assistance network. This draws attention to the importance of access to finance for women entrepreneurs. European Union: The European Union's structural funds support numerous initiatives promoting women's employment. For instance, the Structural Funds' program aim to encourage female entrepreneurs, keep unemployed people engaged in the workforce, make it easier for people to re-enter the workforce, and enhance skills. European Union: The Entrepreneurship 2020 Action Plan calls for awareness-raising, entrepreneurship training, improved access to financing, stronger networks, and support in reconciling business and family life. The Program revolves around 3 pillars: investing in entrepreneurial education, reducing financial burdens by improving access to finance, and recognizing and providing awards to role models. Sweden: The ‘Women Ambassadors’  Scheme was set up to (i) increase the visibility of female entrepreneurship; (ii) inspire female entrepreneurship through personal stories and role models;(iii) make it easier for women to identify with entrepreneurial role models; (iv) encourage more women to view entrepreneurship as a potential career; and (v) help women address their entrepreneurial challenges by sharing their experiences. The programmed ambassadors have reached more than 170,000 women in approximately 11,000 activities. The survey of the program's participants and ambassadors has shown that the participants had more interest in entrepreneurship after meeting an ambassador. Belgium: Young Company initiative Aims to give students experience that closely resembles managing a business in the real world. The concept is built on the foundation of a joint-stock firm. This gives young people the chance to work in a variety of firm positions, including those of director and HR manager, among others. Young Company aims to reach children in secondary schools. Currently, policies related to women’s empowerment are not sufficient to overcome the low levels of female entrepreneurship in developing countries. It is also worth noting that allowing women to engage in growth possibilities will help developing nations speed up their economic and social development. Around the world, female business owners significantly contribute to economic growth and the eradication of poverty. Women-owned businesses, for instance, are growing more than twice as quickly as all other businesses in the United States, contributing close to $3 trillion to the national economy and directly supporting 23 million job opportunities. Progress is also taking place in developing countries, where there are between 8 million and 10 million formal small and medium enterprises (SMEs) with at least one female owner, and this number is rising. Studies have also shown that eliminating gender disparities in the workforce could increase the global GDP by 26%, benefiting both developed and developing nations. Globally, women continue to face significant obstacles that hinder the growth of their businesses, such as a lack of capital, strict social constraints, and limited time and skill. Despite the increase in education and school enrollment among women, they tend to lack the combination of education, vocational training, and skills required to promote the growth of highly productive firms. Regarding access to finance, the World Bank showed that 190 million fewer women than men own bank accounts. Therefore, achieving women’s empowerment is a vital step toward reducing gender inequalities and ensuring equal access to opportunities for all. Both the private and public sectors should create incentives to encourage investments in women-owned businesses to help accelerate women’s entrepreneurship. Reforms and policies that promote and encourage women’s entrepreneurship and economic participation should also be more common to achieve economic growth and reduce the global gender gap. More training program's should be available for women who wish to start their own business ventures, allowing them to accumulate the managerial, financial, and technical skills needed to adapt to a business environment driven by technological advances.   References: World Economic Forum: https://www.weforum.org/agenda/2018/01/this-is-why-women-must-play-a-greater-role-in-the-global-economy/ World Bank Enterprise Survey: https://www.enterprisesurveys.org/en/enterprisesurveys Labor Force Participation Rates: https://data.worldbank.org/indicator/SL.TLF.TOTL.FE.ZS?locations=EG Global Gender Gap Report 2020 - The World Economic Forum: https://www3.weforum.org/docs/WEF_GGGR_2020.pdf Equality Programme of The Finnish Government: https://www.un.org/womenwatch/confer/beijing/national/finisnap.htm European Commission Entrepreneurship2020 Action Plan : https://www.eesc.europa.eu/sites/default/files/resources/docs/entrepreneurship2020---action-plan.pdf Entrepreneurship education in Belgium: https://www.schooleducationgateway.eu/downloads/entrepreneurship/Belgium_151022.pdf Female Entrepreneurship Resource Point - Introduction and Module 1: Why Gender Matters: https://www.worldbank.org/en/topic/gender/publication/female-entrepreneurship-resource-point-introduction-and-module-1-why-gender-matters Council on Foreign Relations: https://www.cfr.org/womens-participation-in-global-economy/

Corporate sustainability has evolved from a mere buzzword to a critical business imperative. This article traces the journey of corporate sustainability, highlighting pivotal moments and key initiatives that have shaped its current significance in the global business landscape. A few key dates The United Nations Global Compact, launched in 2000, is a multi-stakeholder leadership initiative that aims to align business strategies and operations with ten universally accepted principles in multiple areas, including human rights, labor, environment, and anti-corruption, and to drive efforts in support of broader UN goals. In early 2005, Kofi Annan, the former United Nations Secretary-General, invited a 20-person group of the world’s largest institutional investors from 12 countries to participate in the development of the Principles for Responsible Investment (PRI), with the support of a 70-person group of experts in the investment industry, intergovernmental organizations, and civil society. The PRI helped provide a definition of sustainable investment and the actions that ensure that money is invested in a proper and wise way. However, it would take another ten years for these investment criteria to spread further. 2015 was a turning point for business sustainability. The Paris Agreement, a legally binding international treaty on climate change, was adopted by 196 parties at COP 21 in Paris on December 12th, 2015, and entered into force on November 4th, 2016. It is aiming at “holding the increase in the global average temperature to well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels”. The Paris Agreement is a landmark in the climate change process since it is the first binding agreement that brought all nations together for a common cause: combatting climate change and adapting to its effects. The year also marked the foundation of the Science Based Targets initiative (SBTi), a partnership between CDP, the United Nations Global Compact, the World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). Science-based targets show how much and how quickly businesses need to reduce their GHG emissions to prevent the worst impacts of climate change, creating a path towards decarbonization. In 2018, the Intergovernmental Panel on Climate Change (IPCC) warned that global warming must not exceed 1.5°C above pre-industrial temperatures to avoid the catastrophic impacts of climate change. In order to achieve this target, greenhouse gas (GHG) emissions must decrease by about 45% by 2030 (2010 baseline) and reach net zero by 2050. Sustainability criteria and their impact Sustainability is evaluated using environmental, social, and governance (ESG) factors: The Environmental category focuses on the impact a company has on the environment, e.g., Scopes 1-3 GHG emissions, resource and waste management, water use and conservation, the share of renewables in the energy mix, etc. The Social category considers the social impact a company has within society, as well as whether and how it advocates for social good and change. Indicators relate to stances and efforts on social issues including racial and gender diversity and inclusion, employee development, human rights, operational health and safety, stakeholder, and community engagement, etc. The Governance category refers to the ways a company is managed, or “governed”, to address issues and drive positive change. Indicators in this category include quality and diversity of management and the board, executive compensation, corporate ethics, transparency and disclosure, corporate political contributions, etc. These three categories allow companies to create a holistic approach for business strategies, risk mitigation, and reporting. Investors are also increasingly turning to ESG investing, which incorporates these factors into investment decisions, spurred by growing evidence that ESG integration in business decisions has a positive impact: 57 percent of executives and investment professionals in McKinsey’s Global Survey agree that ESG programs create shareholder value, and 83 percent believe that these programs will create even more value by 2025. Respondents also indicated they would be willing to pay a premium to acquire companies with a positive ESG record. In Accenture’s 2020 report titled “Seeking Responsible Leadership”, 2,540 publicly listed companies were examined between 2015 and 2018. Results show that companies that combine high levels of innovation with sustainability and trust outperform their industry peers, with 3.1% higher operating profits and greater returns to shareholders. S&P Global Market Intelligence analyzed 26 ESG exchange-traded funds and mutual funds, with more than $250 million in assets under management, between March 2020 and March 2021. 19 of those funds performed better than the S&P 500. Outperformers rose between 27.3% and 55% over that period, while the S&P increased 27.1%. On the other hand, companies that are seen as not making enough efforts on ESG issues are facing mounting pressure from stakeholders, and operational consequences: Two shareholders in the Commonwealth Bank of Australia (CBA) filed an application in the Federal Court of Australia in August 2021 seeking access to all documents created by the CBA in relation to the bank’s reported involvement in seven specified gas and fossil fuel projects. It is anticipated that the plaintiffs may bring a substantive claim against CBA if the documents produced demonstrate that the projects did not satisfy CBA’s Environmental & Social Policy. In May 2022, both ExxonMobil and Chevron, the two largest US oil companies, suffered shareholder rebellions led by climate activities and disgruntled institutional investors over their failure to set a strategy for a low-carbon future. This comes one year after a court in The Hague ordered Royal Dutch Shell to cut its global carbon emissions by 45% by the end of 2030 (2019 baseline), in a landmark case brought by the environmental organization Friends of the Earth and over 17,000 co-plaintiffs. Also in May 2022, nearly half of Berkshire Hathaway’s independent investors rejected the advice of the board led by chairman and CEO Warren Buffet, instead supporting proposals requesting climate-change-related reports and reporting on Berkshire’s diversity, equity, and inclusion efforts. Collaboration is essential Some companies have gone beyond their own operations and are trying to catalyze ESG efforts not only along the value chain, but also for whole industries. For example, in 2015, Apple launched the Supplier Clean Energy Program, which allows the company to not only share resources and training material on renewables but also to participate in clean energy investments by suppliers. In November 2021, Schneider Electric announced a collaboration in the same field with 10 global pharmaceutical companies, namely AstraZeneca, Biogen, GlaxoSmithKline, Johnson & Johnson, MSD, Novartis, Novo Nordisk, Pfizer, Sanofi, and Takeda. The new program, called Energize, will give suppliers of these companies the opportunity to participate in the market for power purchase agreements. Other companies have partnered with banks to link supply chain financing to ESG assessments. Henkel and Deutsche Bank announced such a partnership in May 2022, creating incentives for suppliers who can lower their costs by improving their ESG rating. Finally, various initiatives, whether sector-specific or not, have been able to gather pledges and commitments towards different targets. RE100, for example, brings together some of the largest companies in the world that are committed to 100% renewable electricity. Race to Zero is the UN-backed global campaign rallying non-state actors to take rigorous and immediate action. As part of the Race to Zero Breakthroughs: Retail Campaign, companies such as Best Buy, H&M Group, Ingka Group (IKEA), Kingfisher Plc, and Walmart have pledged their support to accelerate a movement in the retail industry to drive climate action and encourage other retailers to set out their plans to achieve 1.5 degree aligned carbon reduction targets. By raising awareness and engaging several stakeholders, these efforts—whether through incentives, resource and knowledge sharing, or other means—are important steps on the path to sustainability. In 2021, the first publication from the IPCC’s sixth assessment showed that the world will probably reach or exceed 1.5 °C of warming within just the next two decades. If emissions aren't slashed in the next few years, this will happen even earlier. Whether we limit warming to this level and prevent the most severe climate impacts depends on actions taken now. 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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 real estate market in the United Arab Emirates features some unique attributes compared to its equivalents in the other countries of the region. This is mainly because UAE is a temporary home for a vast number of expats compared to the nationals which in turn affects their preferences and consideration when it comes to choosing a residential place. For example, while it is a common practice for residents of the region to think of buying an apartment as an investment hedge against inflation or as an asset for the future generation, this is not very common in the UAE since expats believe that sooner or later they will leave the country and go back to their home country and also other main factor that the residential supply is not all accessible to buy by foreigners, the property ownership for expats is available in two categories leasehold and freehold in certain regions. These factors affect the demand in the country in general. Even before the pandemic, the oversupply in Dubai & Abu Dhabi has posed a threat to the prices in the real estate sector whether in the residential sector or the office sector. According to a report by Deloitte, average sales prices for residential property in Dubai declined by approximately 7% between Q3 2018 and Q3 2019. Average rents also declined by approximately 9% over the same period, as the average price per square feet for apartments fell from AED 1,178 in 2018 to AED 1,090 as of September 2019. Meanwhile, in Abu Dhabi, there was an average slump of 8.7% over a 12-month period with villa rents falling by 8.4%. Has the sector been affected so far? The oversupply problem in UAE and especially Dubai worsened with the spread of COVID-19. In February 2020, Knight Franck stated that a total of 62,500 residential units are scheduled to be completed this year, which would be the biggest number of new units since 2008. In addition, Moody’s assumed that it is expected the pandemic to further slow home sales and lower rental prices in a market that was still suffering from persistent imbalances. According to real estate and investment management firm JLL, the UAE’s property market continues to be tenant-friendly in Q3 2020. The residential sector recorded an increase in construction activity with around 12,000 units handed over in Dubai and 600 units handed over in Abu Dhabi, JLL expects developers to continue offering a range of incentives and subsidies such as fee waivers, discounts, rent-to-own, as well as partnerships with banks to attract new investors and end-users looking to take advantage of the lower prices. In the UAE, homeowners have become more optimistic on the outlook for residential real estate in the coming 12 months as per the Peninsula sentiment survey. At the end of Q3 2020, 50% of homeowners responding to the survey reported that they expect home prices to be stable or increase in the next 12 months. Sensibly up from the 41% recorded only one trimester before. In particular, 33% of UAE homeowners expressed their belief that home prices will increase in the next 12 months, up from only 11% of respondents in Q2. Trend after the Pandemic: In the unpredictable times of Covid-19, both optimistic and pessimistic outlooks were shared on how pandemic will shape the real estate industry in the UAE. However, both types of projections asserted that modernity and inclusivity will be part of the new trend in the sector. Especially with the crisis due to the excess of offer, taking into account the below insights could help the developers to stand out from the competition: A. Renters/buyers will prioritize mixed-use developments when thinking of renting/buying an apartment Residents are now more prone to choose an apartment in a place where there is a mix of commercial and educational facilities to avoid going to crowded places. B. Renters/buyers will refurbish their tastes when it comes to renting/buying an apartment The pandemic has forced many people to work from their homes, which then need changed from the pre-Covid setup. For example, more and more people would now choose homes that are soundproof or that have a space for exercising. C. Residents will opt for lower density properties Covid-19 brought out the risk that high-density property could have on residents. Hence, it is believed that developers will start considering designs that maintain new distancing standards. D. On a medium- long term, the preference of a well-aired office space will be on the rise According to CBRE, buildings are currently required to comply with a minimum of 20% fresh air intake, while some choose to exceed this requirement by going up to 30%. However, this is bound to change as businesses will prioritize office spaces with good indoor air quality and ventilation. Sources: https://www.constructionweekonline.com/business/265702-lootah-ceo-shares-top-5-trends-to-transform-uae-real-estate-market http://cbre.vo.llnwd.net/grgservices/secure/How%20COVID%20is%20changing%20office%20design.pdf?e=1595837891&h=0608113c7dee3f8d62c0c6cddc611d30 https://www.bayut.com/mybayut/property-ownership-rules-foreigners/ https://www.peninsula-reh.com/wp-content/uploads/2020/11/HomeSentimentSurvey-Q3-2020-FullReport.pdf https://www2.deloitte.com/content/dam/Deloitte/xe/Documents/realestate/me_real-estate-predictions_dubai-2020.pdf https://news.residentialpeople.com/knight-frank-residential-oversupply-in-uae-causes-market-stagnation-1485/ https://english.alarabiya.net/en/business/markets/2020/02/11/Dubai-s-oversupplied-property-sector-to-add-more-new-homes-in-2020 https://www.nasdaq.com/articles/coronavirus-to-exacerbate-dubai-chronic-property-oversupply-moodys-2020-07-20