Why innovate? According to research by Stanford University*, it may be possible to achieve economic growth simply by increasing the inputs and resources to spur growth, such as natural resources and labour, for example. Increasing inputs is only responsible for 15% of aggregated economic growth.
Innovation, on the other hand, is estimated to be responsible for 85% of aggregated economic growth, supporting my sentiment that innovation is no longer a nice-to-have or useful “differentiator”, but rather an essential and sustainable business tool.
We live on a continent that has one of the largest growing youth populations, and yet our region’s diverse natural resources are not infinite. Without innovation, our future as a growing nation, a continent and global potential is challenged.
Change is inevitable, especially in emerging markets – but it is also unpredictable. We as Africans have the opportunity to take a more proactive role in not only supporting or managing through change, but also taking whatever initiatives we can to ensure that change drives a positive outcome. An outcome that benefits broader society, economic development and seizes our collective potential. Innovation is a lever that achieves positive change.
Letshego first opened its doors in a small office in Gaborone, 24 years ago. Today, we have over 3,000 employees, including direct sales agents, located across 11 sub-Saharan African markets. Expansive and innovative thinking was behind the recognition that our brand’s value and potential was not limited by borders or restricted to certain populations – but rather a brand that can improve the lives of millions of individuals across Africa.
Innovation does not only bring about growth and income, it changes the way we think, the way we live and the way we work. It can deliver a reality that our society may previously have never imagined possible. Innovative thinking can create more jobs, new specialist skills and more sustainable ways of living. It necessitates a mindset shift in order to translate thinking into sustainable action and impact.
Letshego’s recently launched Strategic Transformation is centred on the merits of digital innovation, with the objective of unlocking limitless, tangible value for customers while creating an organisation that is future-fit and adaptable to an everchanging emerging market environment.
Through the launch of our LetsGo Digital Mall – an integrated digital platform that serves as a catalyst in connecting customer interfaces with back-office processing technology – Letshego is creating an eco system of opportunity for our customers, our communities and our brand.
Innovation in Letshego is not restricted to tech platforms, but also plays a critical role in the design of our products and services, as well as our people-first culture. Examples of product design include our recently launched a visionary ‘crowd saving’ offering, where customers invite friends and family to help them achieve a financial goal, leveraging today’s increasingly social and digitally connected culture.
Letshego’s passion to improve lives drives us to ensure everything we do is not only commercially sustainable, but also achieves a measurable social impact in the lives of our customers. Our Affordable Housing offering is another way we are innovating for social change. By using cost effective but quality, durable materials from accredited, local suppliers, Letshego is bringing dignity and financial security to new home owners, as well as empowering the local ecosystem of entrepreneurs or small businesses. Affordable Housing for Letshego is not only about new homes, but also includes options in accessing productive funds that support sustainable home improvements such water supply, drainage, solar power, securing foundations or adding rooms for rental income.
Within our people-first commitment, we are empowering our own people as well as visionary, digital talent outside our organisation with new-age skill sets such as digitisation and entrepreneurship. Our Digital Mastery education programme is a source of joy for us because it involves mentoring young people who have ideas with great potential, but need a little ‘incubation’ before the concept is ready to be monetised. Seeing young people grow in this programme is reassurance that Africa has a strong future.
Innovation is enabling us to simplify our approach, execution and delivery of value, focus our efforts in extending the reach and access of productive financial solutions, and remain disciplined in achieving measurable efficiencies, savings and long term returns for all our stakeholders.
There is a predictably close link between innovation and entrepreneurship. Letshego’s strategy incorporates both concepts, not because they are fashionable buzzwords, but because they solve real life problems.
Letshego remains focused on its purpose to improve lives and looks forward to the untapped potential that innovation will bring to our customers and our communities. Innovation is our catalyst for unlocking progress, and it lays at the heart of our strategy and our business. It is an area we believe in, invest in and never neglect. In transforming innovative thinking into innovative action, we can truly make a meaningful impact in our regional footprint, our continent and indeed the world.
Soon, the world will reference research and proven impact in Africa. It’s up to us to share our experiences and success as global case studies to inspire others worldwide, as we progress with solving for real problems and bring real benefits.
