Forget about the money, just consider the wealth of information and training that these skilled professionals can offer

I am always baffled by those who expect people in the diaspora to send money home for the needy, and yet this money amounts to roughly 10% of the total contribution they would send if it was for a business venture or an entrepreneurial endeavour. For example, in the security industry in several countries in the west are diaspora-owned and run. Here lies a business opportunity for governments to create a conducive environment for these companies to operate and provide these world-class services in countries of origin.

I didn’t even want to mention the health care sector, where the lack of skills and facilities is desperate.  As an example,  I currently mentor  a lady with over 30 years of nursing experience and 20 years of working in the private medical sector and yet has no knowledge of certain fairly common medical equipment  that non-medically trained support and care workers in the West are easily able to recognise and even operate.

So now tell me, isn’t this a huge opportunity for people in the diaspora to contribute to the economy in their home countries? Forget about the money, just consider the wealth of information and training that these skilled professionals can offer?

And FYI, because of the Euro crisis, so many skilled people want to go back home but have no idea of where to start. Don’t you think it is in the interest of governments to create a platform of entrepreneurship?

Learning to surf the waves

Life is like surfing or sailing, continually adjusting the balance, direction, speed and destination is the best way of surfing waves you can’t control. Everybody is affected and affects waves outside of our control but within self influence.

There are small waves that help to solve/ change what is popular and what isn’t and what is possible and what isn’t and they are big waves that roll through society over decades, centuries and even ages. You don’t know what is coming and the only data available is about the past waves. So adaptability matters and theory is needed to predict wave’s more than initial direction.

When creating something new, there is no way of being sure who will use it or what they will use it to achieve. The trick is to learn to read the sign and then ride the surf all the way to shore. The Polynesians were master navigators who travelled without compasses; they learnt to read the patterns formed by waves. Each navigator used the motion of the canoe to feel the way across the ocean. The communication wave is another good example, humans find communication valuable. Evolution has favoured our ability to talk and exchange our opinions with others. Each generation from cave painting to printing press shows an interest in methods of improving communication, creating a way of connecting to people better, richer, faster and easier will then replace the old ways or sometimes increases the amount of time spent communicating.

So, what we need to understand is Recognizing waves is a mixture of history and fashion and Surfing waves is a mixture of suppleness and strength. Being fast matters because you only have a limited amount of time to complete each activity before the next wave and being bold helps because you have to attack each new wave with enough strength and the right form to get through it without being swept away

#7Billion and counting.

The Kenya housing sector is characterized by inadequate affordable and decent housing, the shortage of housing for low-income houses in particularly acute in urban areas with only an estimated 6,000 units or 20% of all houses produced catering for this group.

This is attributed to under investment in low and middle-cost housing by both the public and private sectors. More than 80% of new houses constructed are for high and upper middle-income earners. Considering that more than 60% of the Kenyan population is younger than 25 years, it is clear that the demand for adequate housing will rise steadily.

Key facts from Central bank Kenya and World bank report 2010 on real estate in Kenya

According to the report by the Central Bank of Kenya and the World Bank indicates that only 1 in 10 Kenyans can afford to buy the home they live in, even if they get a mortgage (assuming they even qualify to get it).

In my mind, this report clearly indicates that the Kenyan real estate market is in the middle of a bubble. Real estate prices have gotten to be so high that the great majority of Kenyans just cannot afford real estate.

Some shocking revelations also indicate that the total mortgage loan book in the country is only 16,000 accounts, while the total value of mortgage loans, as at the end of December last year was Sh133.6 billion. This means that, technically, only 16,000 people/organisations in the whole of Kenya have taken up mortgages

This is also an indication that buying property in Kenya is predominantly for the rich, who opt for cash sales as opposed to mortgages. Professionals in the housing sector say the findings reflect the high level of speculation on land that has pushed property prices through the roof

According to the survey, the annual housing demand in 2010 was estimated at 210,000 units against a current supply of about 50,000 units – resulting in a shortfall of two million houses.

Only eight per cent of the urban population – representing about 1.4 million people or 350,000 households – can qualify for mortgage loans.

The income distribution shows that only one per cent of the population earns Sh2.6 million or more and only four per cent earns between Sh1.8 million to Sh2.6 million. Only this top-end market can afford to purchase in cash and do not rely on financing.

Typically, for a property valued at Sh4 million, banks give a mortgage loan amounting to Sh3.2 million (or 80 per cent of the property value), with a maturity period of 15 years at an average 14 per cent interest rate.

Even though the average mortgage loan size has increased from Sh2.5 million in 2006 to Sh4 million in 2010, Kenya’s potential mortgage market is about Sh133,6billion, with only 16,000 outstanding mortgage loans.

To qualify for a mortgage loan for such a property, a typical borrower has to be earning a minimum of Sh1.3 million annually (or about Sh108,350 monthly), with savings of at least Sh1.2 million to cater for a 20 per cent deposit (Sh800,000) and 10 per cent (Sh400,000) mortgage fees which include stamp duty, legal fees, valuation, arrangement fees and mortgage protection policy premium.

The high fees charged on mortgages only serve to lock out hopes of potential homeowners in country where the bulk of housing funds come from household savings and the housing finance market is yet to move downstream. “If we want to expand this (mortgage) market, we have to minimize these fees and costs. People in the rural areas cannot afford mortgages due to meager incomes, far too low to make economic sense for the fledgling Kenyan mortgage market.

Although the Kenyan government has a guiding policy document, 'Vision 2030', also adopted a human rights-based approach in its housing, water policy, good policies are not enough if they are not followed up by real action, needs to be followed by a genuine commitment to allocate sufficient resources to actually implement agreed policies that would benefit all Kenyans. The realization of basic human rights will remain a pipe dream for the majority of Kenyans living in inadequate housing.

Please check out our next blog........

Is capitalism an old skool of thought?

Recently I was watching a young apprenticeship program on TV, to my surprise I heard someone tell the young apprentices that business is all about profits. Although apprenticeship provide an increasingly effective training route for young people and companies, i differ with the traditionally Capitalist argument.

Profits are important without doubt, but it's hardly sufficient in the highly networked 21st century. With the international economic recovery uncertain, it's obvious we can no longer rely on job security or investment returns to protect us from hard times. Business model don't last as long as they used to and incumbents increasing face the risk of disruption.

 Some go even further and say that capitalism is good because it is moral, the purer the form of capitalism, the more moral it is.  Is capitalism perfectly moral enough to sustain itself over many generations? Some say yes, but I would not go that far. I think a capitalism that lacks outside moral influence and pressure, would sooner or later fail.

Capitalism is not in itself sufficient to create values, it depends on what human and religious values we ourselves bring to our affairs. To the extent that this values fail, we would all descend toward a lawless, inhumane, cut-throat society that will no longer harbor our civilization.

21st century businesses and companies are more than instruments for generating profits,  they are also vehicles for accomplishing societal purposes and for providing meaningful livelihoods for those who work in them.  The value that a company creates should be measured not just in terms of short-term profits or paychecks but also in terms of how it sustains the conditions that allow it to flourish over time. These businesses deliver more than just financial returns; they also build enduring institutions.

Recreating decent green jobs that are likely to grow 21st century economies

The construction industry consumes truckloads of basic materials and in England it’s the single largest source of waste. The combined impacts of the embodied carbon and use of building products ( over £30bn worth a year) is estimated to make up one fifth of the national carbon footprint with transport alone making up a third of all road freight traffic.

According to a study conducted by (Bioregional) the total value of construction industry related work represented 39% refurbishment 23% maintenance and 16% new build. The use of construction materials has a significant impact on the UK sustainability. Annually they account for 19% of total national ecological footprint, 23% of the national greenhouse gas emissions, 420 million tonnes of material consumption and 30% of all road freight on UK roads. There are multiple reasons why the industry urgently needs a transition to a low-carbon.

A weak performance by the construction industry and constraint on natural resources may force the economy back into recession. This emphasises for a creative and innovative revolution greater and faster than the industrial revolution to avoid a major catastrophe. Reuse of construction materials offers competitive advantages to business worldwide and helps to create opportunity for decent green jobs that are likely to grow 21st century economies but in a way that keeps humanity’s footprint within planetary boundaries.

2recreateinteriors offers specialist creative innovative and entrepreneurship ideas that reduces waste land filling and opens the door for new businesses. Our Dilapidation Project is a specialist office strip out service aimed at the commercial market and construction industry. We provide our clients with sustainable, socially responsible and environmental means of waste disposal solutions which helps in their Corporate Social Responsibility in their chosen fields.

Businesses are facing increasing challenges from the rise in extreme weather events such as drought, heat waves and floods. In this changing environment, companies that move first to address the risks and develop innovative strategies to adapt to climate change are likely to be winners and gain a competitive advantage moving forward.

Communities around the world are already dealing with the impact of climate change and since companies depend on community members as suppliers, customers and employees, need to count on local services and infrastructure to be able to operate efficiently. The wellbeing of communities on the frontlines of climate change and the viability of companies are intricately intertwined.

Addressing Social exclusion through sustainable entrepreneurship, creativity and innovation.

2Recreate is a social enterprise that addresses Social exclusion in a sustainable manner through entrepreneurship. We provide sustainability oriented services to businesses, governments and individuals who are committed to corporate social responsibility and are acting on it.
Social exclusion is an issue that affects both developing and developed countries and has been compounded by globalisation. Social exclusion occurs when individuals do not have or have limited access to their basic human rights whether it is education, age discrimination, health services, water, shelter, technology or a fair living wage. Companies and individuals play an important role in reducing the effects of social exclusion by contributing to sustainable development through implementation of strategic CSR and sustainability programmes.
Although not a signatory of the UN Global Compact, 2Recreate researches and disseminates information on the role of business and individuals in reducing social exclusion in a range of ways in the chosen locality. Below are some of the highlights of our efforts in this area.

Recognizing Need for Benefits Appealing to young and Old Workers

The active ageing approach is based on the recognition of the human rights of older people and the United Nation Principle of independence, participation, dignity, care and self-fulfilment. It shifts strategic planning away from a need based approach that recognizes the rights of people to equality of opportunity and treatment in all aspect of life as they grow older.
Ageing should be a positive experience, longer life must be accompanied by continuing opportunities for health, participation, security and employment. The idea that everyone over age 60 is dependent is however a false assumption. Societies that value social justice must strive to ensure that all policies and practices uphold and guarantee the rights of all people, regardless of age.
Age discrimination in the construction is a significant barrier to employment and despite government legislation to prevent it, the problem persists. Too many over 50s are unemployed, which is a waste of skills and experience and loss to the economy. Majority of workers over 50 (62% of women and 59% of men) want to continue working beyond state pension age. 60% would like to continue working after state pension but on a part-time basis.
Longer life expectancies lead to an ageing population, thus the need to create more age-friendly workplaces. The need to attract younger talent, while holding onto experienced workers is creating a demand for financial benefits plan that appeal to a multigenerational workforce. 2RECREATE will create jobs opportunity which are flexible and targeted to over 50s, employ people that can deliver quality workmanship, people with experience and who can be trusted. By working with mature builders and matching them with refugees and young people, plays the role in talent management and helps to educate young people about ageing and paying careful attention to upholding the rights of older people will help to reduce and eliminate discrimination and abuse.