Microfuse Stick, the Affordable, Slimline, low Power Computer for Africa    

Karugaba Ivan, Founder of Microfuse talks to World Business Journal about Microfuse Stick which drastically cuts the cost and electrical power of Windows PC-type devices and the ambition to drive technology to all communities in Africa.

What is Microfuse Stick and how does it function?

Mirofuse Stick offers the functionality of a Windows PC for just $100. Or $200 with a 19-inch monitor, and IPS, with built-in sound and a mounting system. The stick connects to the screen via HDMI, replacing the bulky CPU and cutting energy use from the usual 200W to 35W watts compared to a typical desktop’s 200W.

We created the prototype in 2016 using Raspberry Pi compute module industrial application developer platform. Progressing from starter kits to more user-specific applications, we refined our hardware design and further enhanced the prototype.

By 2017, we tackled intellectual property concerns and gained recognition by winning the  Multimedia Innovation award at a URSB competition. In 2019, we downsized our device based on user feedback, prioritizing basic computing needs in Uganda. 

Partnering with the Uganda Industry Research Institute in 2020, we launched Version 1, producing 100 units for schools and small businesses gaining crucial insights into user preferences and pricing expectations.

Around mid-2023, Version 2 debuted, featuring Windows OS and improved cooling, receiving enthusiastic feedback even before mass production began. We ramped this up to meet high demand while keeping focus on energy efficiency and ongoing product enhancements.

Is local manufacturing a part of your business strategy for these products?

Our strategy involves the gradual localization of our value chain. Currently, our focus is on local design, creating manufacturing files and bills of materials, and sourcing components from China through contract manufacturing services. 

Our current goal is to internalize processes, with a target of achieving a 40% localization rate. This includes enclosure manufacturing and packaging through injection molding and sourcing packaging locally targeting 6 to 12 months. This endeavor is supported by a government grant from Science, Technology, and Innovation (STI). We’re establishing a facility in Namanve Industrial Park, expected to reduce manufacturing costs by about 30%, aided by favorable policies like tax waiver for production inputs, contributing to overall cost reduction.

What other services does your company provide?

We specialize in product design, having crafted over 30 unique products, with six successfully transitioning to commercial phases. This ranges from addressing challenges faced by motorcycle taxi (boda boda) riders in the e-commerce industry to developing medical devices like a digital stethoscope that enhances diagnostic accuracy. 

Our focus spans education and business. In partnership with the NGO AcTogether Uganda, we’re collaborating to oversee the digitization of transaction records for over 2,700 saving groups, consolidating financial data and facilitating the transition to digital systems.

Within education, our digital platform complements our hardware, allowing students to participate in digital labs, quizzes, assessments, and access study materials, videos, and live lessons. The Global Digital Education Network, a collaboration with Madix Online Education Agency, offers schools discounted access to our hardware and platform.

How do you anticipate the next two years unfolding?

Only 9% of school-going children globally have computer access, while Africa stands at a mere 3%. This underscores the immense potential for expansion.

We foresee significant growth opportunities; expanding our product lines and market reach, aiming for an increase from 1,000 units to 100,000 units in 2024. We also plan to enter additional African markets within EAC. 

Our recent participation in the Qualcomm Make in Africa program, focused on chips and wireless communication devices gave us an eight-month mentorship under  Elliot Levine, a global technology leader and director of Worldwide Public Sector and Education at Qualcomm.

We recently got into the Africa Prize for Engineering Innovation, founded by the Royal Academy of Engineering. Africa’s biggest prize dedicated to engineering innovation, awarding commercialisation support to innovators developing scalable solutions to local challenges. We hope to use this opportunity as a stepping stone to learn, collaborate and raise needed funds.Communicating the potential of hardware innovation has been challenging, despite the rising demand for production in Africa as global labor costs shift. We must train our workforce to seize the opportunities and prepare for the sector’s growth.

KMC Takes the Driver Seat as it Moves into High Gear

Sandy Stevens Tickodri-Togboa, Chairman, Kiira Motors Corporation (KMC), talks to World Business Journal about the president’s role in the company’s origins, the current production plans of its models and its aspirations for the future as it cements its place in the automotive sector.

How did Kiira Motors Corporation (KMC) begin?

A transformative moment came in November 2007 when a critical need arose to assist the students of Makerere University that were involved in a groundbreaking vehicle project with the Massachusetts Institute of Technology (MIT). The absence of support would have jeopardised the students’ graduation. Stepping up to the challenge, I collaborated with Paul Isaac Musasizi to oversee the MIT-led initiative, which began a grand scheme involving 31 universities, with Makerere University being Africa’s sole representative.

The defining moment came in November 2009, after my appointment as deputy vice chancellor, finance and Administration at Makerere University. I received word that President Yoweri Museveni would be visiting the university’s faculty of technology to see what my team and I were engaged in, and how the government could promote our work. I had no idea that my team’s work was being monitored at the highest level. The president’s December 2009 visit culminated in his invitation for my team to deliver a presentation to the Cabinet of Uganda and the reception by the Cabinet was overwhelming.

The real turning point emerged in 2010 when began building a prototype, an undeniable proof-of-concept (PoC) vehicle, that with the president’s guidance, came to be called the Kiira Electric Vehicle (KEV). This marked a year dedicated to fine-tuning designs and presentations. We successfully unveiled the PoC in November 2011 with the president’s commissioning. His endorsement and the government’s unwavering support led to the formal establishment of KMC in 2014.

Soon, the KEV, capable of travelling 80 km on a single charge, was created, subsequent followed by the Kiira EV Smack, which tackled distance limitations by combining electric motor drive and internal combustion engine drive in November 2014. The ambitious Kayoola Solar Bus, which harnessed solar energy for public transportation, was launched in February 2016.

In 2018 KMC’s establishment gained official approval by the government, opening doors for funding as we began construction at our Jinja site. Subsequently, we facilitated the domestic assembly of electric buses such as the Kayoola EVS and Kayoola Diesel Coach. This period also saw enhanced collaborations with local companies, exemplified by our partnership with Tondeka, in which we manufactured five buses for their operations.

In 2024 amidst ongoing infrastructure development and expertise in manufacturing electric and diesel buses, KMC continues to harness local resources, generate employment and significantly contribute to Uganda’s industrial growth. We remain steadfast in our commitment to creating eco-friendly vehicles, forging partnerships that strengthen local industries. This commitment recognizes the pivotal role played by the president in our journey from vision to reality.

How is KMC expanding its manufacturing capabilities and market reach?

Our focus is on the imminent completion of our facility by the first quarter of 2024. Installation for assembly line production is currently in progress and projected to increase manufacturing capacity to 22 vehicles per day through a 16-step assembly process.

Expansion signals a significant move forwards as we set our sights on the East African Community market. Internally, we are exploring potential partnerships with educational institutions to facilitate bus procurement. Our aspirations are grounded in the projected demand for approximately 12m vehicles in Africa by 2040. Our aim is to secure a modest 12% share in Uganda by increasing our annual production capacity to 5000 vehicles. Such growth, if achieved, would mark a significant milestone for our operations and contribute positively to Africa’s automotive sector.

What are KMC’s future plans and collaborations?

In anticipation of our 2024 model, slated for completion by Q1 2024, we plan to introduce an additional 28 buses, enhancing our fleet. A highlight is the Non-Aligned Movement summit in January 2024, where we plan to showcase 30 improved versions of our Kayoola buses. This upgraded model is set to feature a larger capacity battery, aimed at extending range up to 400 km, from the current 300 km. We plan to establish a number of charging infrastructures, ensuring convenient and seamless access to charging points, which presents a promising opportunity for potential private investments in the charging infrastructure sector.

In parallel, our collaboration extends to the development of the Electric Trike (3-in-1), an innovative creation stemming from Kevoton Motions Engineering. This engine can serve several purposes, including powering the vehicle, pumping water at a rate of 6000 litres per day and generating electricity. Recognising its diverse applications, we have partnered with the Science, Technology and Innovation (STI) Secretariat to further refine and expand its functionalities, attract more innovators into these incubator programmes and foster a culture of innovation and development. The trike represents a fusion of irrigation, power generation and mobility and its successful launch has inspired future designs, paving the way for potential evolution into a two-wheeled car.

Innovex Scales Up Manufacturing as it Eyes Growth

Douglas Baguma, Founder and CEO, Innovex, talks to World Business Journal about the company’s market share in the local business environment, as its internet of things technology solution, REMOT penetrates beyond Uganda, and into the EAC.

What inspired Innovex’s inception, and what range of services does the company presently offer?

Innovex’s journey began with a vision to bridge Africa’s technology gap, as there are very few technology products that are made in Africa and sold to the rest of the world. Founded in 2015, we are a Ugandan company that aims to spur Africa’s socio-economic transformation through the development of novel technologies. Innovex’s competencies include embedded systems, connected devices, web and software development, and wireless communication technologies. We entered the market with a homegrown internet of things (IoT) solution. This IoT solution, REMOT, offers after-sales service support; remote monitoring and controlling solar photovoltaic systems and equipment; and supporting preventative maintenance and repair activities. To date, REMOT has been used in eight African countries by solar companies and solar energy researchers.

Working with the Carbon Trust, a UK headquartered climate expert partner, under the Transforming Energy Access (TEA) programme, Innovex has established a local surface-mount technology and plastic manufacturing facility for its products. This establishment seeks to ensure local value addition by providing better job opportunities for local product developers in the solar energy space while increasing accessibility to produce spare parts.

REMOT helps solar businesses, non-governmental organisations and other solar players solve problems around the operation, efficiency and maintenance of their solar installations. We work with over 60 companies in Uganda, these include Village Energy, Solar Nation, All in Trade and Aptech Africa, and also with programmes in Kenya, Nigeria, DRC, South Sudan, Somalia, Ethiopia, and Tanzania like E4I, Clasp, and Vodafone.

Additionally, we assist partners like GIZ and USAID in verifying installations and monitor critical equipment, such as the Ministry of Health’s oxygen plants, to prevent failures. We also offer customised hardware and software solutions within a three-month turnaround. With our move into local electronics manufacturing supported by the Science, Technology and Innovation (STI) Secretariat, we are progressing towards becoming contract manufacturers.

Initially funded by the UK government, our transition to local manufacturing has been fruitful. Collaborating with the government of Uganda, we are relocating to an industrial park by year-end 2023. This partnership with government will increase our production capacity to 20,000 units per year, while benefitting from a number of governmental initiatives that are aimed at promoting local value addition, import substitution and employment creation. We will later scale up the manufacturing facility with equipment of bigger capacity.

How did partnerships aid Innovex during its initial growth period and throughout the company’s continuous growth?

The partnerships have played a pivotal role, securing over $1m in funding through grants, debt and equity. Initial collaborations began during our early stages of growth with government programmes, and over time, Innovex has been a part of a number of programmes, such as Efficiency for Access, TEA, Water and Energy for Food, Innovate UK, Netherlands Trust Fund IV programme and Mandela Washington Fellowship programme. Through these initiatives, Innovex has received financial and non-financial support from organisations, such as FCDO, USAID, GIZ, IKEA Foundation, International Trade Centre and OVO Foundation, as well as with Belgium, the US Department of State and the government of Uganda. Each of these opportunities have enabled commercialisation and business development for our product. 

How did your innovation journey translate into deploying successful, market-ready solutions?

Our journey started with a government initiative while at Makerere University, notably the Presidential Innovations Fund for College of Engineering, Design, Art and Technology. This led to early exposure to robotics and embedded systems, shaping our expertise. Later, in 2019, a government grant allowed engineer training to take place in Belgium and equipment procurement for our electronics lab. Continued support from various government programmes including favourable taxation policies for equipment import, has fuelled our local manufacturing initiatives. As entrepreneurs, we thrive on challenges, particularly in changing perceptions surrounding African technology. Although the shift, especially in hardware, is difficult, it is also incredibly rewarding and inspiring for others, to tackle such a significant problem.

Could you outline the company’s objectives over the next two years?

For REMOT, we have recognised a significant demand among development partners and organisations in the energy access subsector for verifying and monitoring the impact of their investments. Discussions with the World Bank in handling a $600m energy access programme in Uganda, highlight the need for real-time verification during installations and ensuring sustained value afterwards. Over the next two years, we aim to assist these partners in verifying and monitoring the impact of their investments, including metrics such as the reduction of CO2 emissions.

Additionally, REMOT offers an opportunity in mitigating risk for financial institutions that invest in energy access businesses. By ensuring the quality of our equipment, our solution minimises the risk associated with loans for installing such equipment, while preventing non-performing loans that occur because of equipment failure. Our goal within local manufacturing is to establish Innovex as the primary electronics manufacturer across Africa, as we also aim to become the preferred local electronics manufacturing service provider.

MTN Uganda Transitions with Tech Offerings

Sylvia Mulinge, CEO of MTN Uganda, discussed with the World Business Journal the company’s 2025 vision, mobile money offerings, various collaborations, and substantial investments in 5G infrastructure and technology.”

How has the successful listing of MTN on the Uganda Securities Exchange (USE) influenced its profitability and corporate profile?

MTN Uganda’s listing on the USE marked a pivotal moment in our journey, catapulting us to new heights. The impact was profound, more than doubling the local market capitalisation from Shs3.8trn ($999m) to a remarkable Shs8.2trn ($2.2bn). This transformative milestone propelled us into the league of Africa’s most valuable companies, a recognition of our growing influence and significance on the continent. We’re now viewed as a local company and partner in the growth and development of Uganda’s economy and, above all, more transparent and accountable to our stakeholders. As part of our shared value, the company has since paid a total of five dividend payouts valued at Shs586.7bn ($154.2bn) to over 20,000 shareholders since its listing.

How does the implementation of Ambition 2025, MTN’s 2025 vision, align with Uganda’s Digital Transformation Roadmap?

Ambition 2025 is a commitment to spearheading digital solutions that drive progress across Uganda. Our focus rests on five key growth platforms: financial technology (fintech) solutions, digital services, enterprise services, Network as a Service (NaaS) and the application programming interface (API) marketplace.

Remarkable progress has already marked our journey. Take, for instance, the transformation of fintech through MTN Mobile Money (MoMo), a cornerstone of financial inclusion since its launch in 2009. With over 11m customers, MTN MoMo has become a catalyst for facilitating payments for businesses, significantly boosting the adoption of e-commerce. The growth of MoMo merchants, tripling to over 267,000 in the past year, attests to its resounding impact.

In partnership with NCBA Bank Uganda, MTN MoMo has extended its services to provide savings and credit facilities, promoting financial inclusion. Furthermore, our collaboration with XENO Investment Management empowers customers to invest in productive ventures, including government Treasury bills and bonds. MTN MoMo also offers opportunities to save for unforeseen medical expenses through a partnership with clinicPesa.

In the realm of enterprise services, MTN introduces the Fast-Moving Consumer Goods (FMCG) Digital Suite, a pioneering solution transforming the supply chain landscape. By automating product and service distribution and enabling payments via MoMo, this platform eliminates the need for cash transactions. This not only enhances efficiency but also addresses security concerns and streamlines record-keeping across the supply chain. We are proud to have onboarded Uganda Breweries onto this platform, and we eagerly anticipate more businesses joining this innovative journey.

Our commitment extends to expanding our network to ensure universal access to our services. Since 2021, we have erected over 1871 new masts, significantly enhancing our network coverage. Notably, our 2G population coverage has increased from 98% during the first half of 2022 to an impressive 98.4% in 2023. The evolution doesn’t stop there, as our 3G and 4G coverage has also seen substantial enhancements. Our 3G coverage has increased from 90.9% to 92.4% and our 4G coverage, from 67.7% to 83.4%. We are also making substantial investments in our 5G infrastructure, products, services and technology, while expanding our fibre-optic network to over 9500 km to meet our customer needs.

Regarding the API marketplace, MTN recognises the evolving needs of consumers and is now providing third parties with access to our proprietary software platform. This innovative service empowers businesses to create solutions that accelerate digital transformation and innovation. With the launch of the API service, MTN Uganda positions itself as a digital transformation enabler and a valuable partner for businesses in both local and international markets.

In this age of rapidly advancing technology, we have moved beyond our telecoms roots and transitioned into a technology company, delivering cutting-edge solutions such as cloud computing, the Internet of Things, AI, Unified Communications and Security as a Service.

This aligns well with the government’s Digital Transformation Roadmap 2023/24-2027/28 that is expected to revolutionize Uganda’s tech landscape. The roadmap, launched in August 2023, is anchored on Digital Uganda Vision 2040 and represents a bold vision for our nation’s future that technology is a catalyst for sustainable development, economic growth and improved livelihoods for all Ugandans.

How can MTN help shape the future of Uganda’s telecoms sector?

Since our establishment 25 years ago, we have played a pivotal role in making mobile phone ownership accessible to everyone. From only 40,000 mobile phone subscribers in all of Uganda in 1996 to more than 34m mobile phone subscribers in 2023, MTN has also commanded more than 50% of the market share. This achievement was realized through the elimination of barriers, such as monthly service fees and a substantial cost reduction in making calls.

With a stable and growing economy, a relatively young population with more than 70% under 30 years and relatively low internet penetration rates, the future is bright for the telecoms sector moving forwards.