Sunday, July 29, 2007

Mr. Africa Challenges Us to Think Economics



There is someone that I would like to tell you about. His name is Mr. Ogo Sow, he hails originally from Senegal and to his tens of thousands of radio listeners from New York City and across the globe he is affectionately known as Mr. Africa. He is a special advisor and consultant to the Africa Travel Association and was also a special invitee to the African Union's 9th Assembly of African Heads of State in Accra, Ghana. He has many achievements, among them being an African television pioneer, a producer, and a publisher whose work has touched millions radio, but I look up to him for because for many years he has enlightened Western audiences on the untold other side if Africa; while inspiring African expatriates abroad to look back and do something for the distant land that they once called home. Something else that I admire in Mr. Sow is how balanced he is with showcasing the entire continent of Africa, not just Senegal or just that of those who speak his mother tongue-Fulani (in this regard he is kind of like someone else that I admire who is known as African Liz). Recently, he has taken me to the task of participating in some of the round-table discussions that he organizes relating to the African continent. His latest discussion interests me very much and was inspired by a speech made by French President Mr. Nicolas Sarkozy. The question that Mr. Sow or Mr. Africa asks is in light of President Sarkozy's comments made about the African continent, what can Africa do to become economically free. My response is below.


This is a great discussion Mr. Ogo Sow, AKA Mr. Africa, thanks for inviting me. I have also invited others by adding them (in the bcc field )to this message, so that if they would like to participate, they can just jump in. In this instance, I am inviting anyone reading this piece...

Lets look at a statement made by former Mali President and current Chairman of the Commission of the African Union (AU), Mr. Alpha Oumar Konare, "This speech was not the kind of break we were hoping for". So why was AU Chairman Mr. Konare upset? What was he expecting to hear from the French President Mr. Sarkozy? Well let's look at the statement that the French President made for a possible answer.

French President Nicolas Sarkozy says about Africa should face up to its own problems he says, "Do you want to end the arbitrary corruption, violence? That money is invested instead of being embezzled. Do you want the rule of law?" Ok, in and of itself, what he is saying makes sense. However, maybe Mr. Konare felt that for a French President to say it was a bit hypocritical. Right now if we were to count the Western Sahara as a country, Africa has 54 countries. Throughout the last 15 years the continent, at any given time, the continent has almost consistently seen six out of her 54 nations in serious trouble. If you look at some of the nations which have had large scale conflicts over the last fifteen years, how many of these nations are in Francophone Africa? Let's try to find out...in the last fifteen years the following African nations have had serious issues or conflicts affecting them-Cote d'Ivoire, Democratic Republic of Congo, Rwanda, Chad, Guinea-Conakry, Central African Republic, Burundi, Algeria, Liberia, Sierre Leone, Angola, Somalia, Zimbabwe, and Eritrea. Eight out of these fourteen countries share heavy French influence as a commonality. Now this is may not be by design, but it is difficult to ignore this trend. So if the French President says that France will be an unwavering friend, then it seems that accompanying that friendship would be a public policy toward Africa should somehow address this issue, rather than sweep it underneath the rug. However, this did not seem to be the case, judging from the tone of Mr. Sarkozy's speech and French public policy. Maybe this is why Mr. Konare was unhappy.

Me personally, I would like to say that in spite of major problems affecting a small group of countries on the continent, since the 1990's amazing things have been happening across different regions of the continent. Very notably many of these achievements have been in entrepreneurship and governance. This to me signals that Africa has already started to take her future into her own hands. This is probably what Mr. Konare expected the French President to say. That is where I agree with Mr. Konare. However, where I have disagreed with him was on his stance, while serving in the capacity of AU Chairman, towards Zimbabwe. I'll just summarize it by saying that his approach to the crisis befalling the nation of Zimbabwe seems to be very "hands off". This would almost underscore at least part of what France's president mentions. However, dwelling here on the particulars of the speech, appears to be a distraction.

The question of how to bring about economic freedom to Africa is multifaceted. Therefore, the answer should also have several layers.

The following are some of the items that I believe African nations could focus on to begin controlling their own economic destinies:

  • Continuing to embrace and empower entrepreneurs
  • Focusing on service oriented export industries
  • Strong governance
  • Continual investment in infrastructure
  • More intra-continental trade
  • Making education more accessible to economically disadvantaged children
  • The continent re-claiming her own public relations and image, so that the tragedies affecting six countries don't need to dissuade investors from investing in the other 48 nations
  • Finding ways to include the informal market sectors within growth strategies
  • Eliminating the barriers for women in business
I would like to add to this list something along the lines of either the African Union or Africa's regional bodies prioritizing or fast tracking conflict resolution and crisis management/prevention for member nations facing crisis. Then there was the corruption and nepotism, arising partly as a response to overly centralized governments, that Mr. Gavin Chait referenced in his response to this round table.

"I continue to believe that Africa's greatest problem is an over-reliance on central government. For as long as government and aid constitute the bulk of an economy there is no market beyond patronage, no entrepreneurial class, and no respect for ability instead of "connections"


I am not sure how to stop this but have seen Nigeria and Kenya trying to tackle it by closing leaks and adding more transparency measures, but it hasn't been an easy battle. Mainly, what I wanted to mention is this idea that instead of just focusing on the law enforcement and punishment, that reducing the opportunities to participate in corruption presents a more balanced approach and therefore might be more easily attainable for nations fighting corruption.

Of course this is all easier said than done, but the fact that a number of nations have already begun making efforts to tackle one or more of these issues, some with moderate to concrete success is very positive, I believe. To me that list of nations would include-Senegal, Ghana, Liberia, Tunisia, Mauritius, Kenya, Tanzania, Botswana, Mozambique, South Africa, Nigeria, Mali, Namibia, Angola, Rwanda, Uganda, Benin, Zambia, Ethiopia, Seychelles, the Canary Islands, Burkina Faso, Cape Verde, Malawi, Madagascar, Libya, Sao Tome, and Egypt (side note: I have been re-reading Africa Unchained and am aware that though some of the nations mentioned above have made small steps, many of them would not make Prof. Ayittey's cut, again they are listed because they have taken one or more of the measures listed above).

Finally, tax collection and fiscal spending. I guess these could have also been included within the good governance category but they are so heavily weighted in this equation that I felt they deserved a specific mention. Tax collection is the one area where many of Africa's nations face difficulty. 1) because the combined informal and traditional sectors are often larger than the formal sector and taxes there are very much noncollectable 2.) tax collection is loosely enforced in the formal sectors. Loose tax collection is probably the easier of the two points within this tax collection piece to tackle, because only good leadership and management are needed to improve tax collections on registered activities. Again, this is one of the reasons that I think that the emphasis on the informal sector should be so thorough. Of course, it also points to the importance of strong governance and leadership. With strong tax collections, governments may undertake stronger educational policies or do more to enable a sound and efficient business environment; which in turn result in better local economies.

Again, I know that nothing is as easy as it may sound, but this was just my way of participating in the discussion.


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Thursday, July 26, 2007

Experts Trade Views on US of Africa with Benin Mwangi


My good friend, Branded-thank you so much for helping to expand and share the knowledge on this whole United States of Africa idea that just swept by. Also, there are many wonderful online pieces on this United States of Africa. I have spoken to a number of people on the subject also, many have been from various African nations. While, others that have shared their thoughts on the subject have been from other parts of the worlds. What the conversations seemed to mirror in each other was a certain level of caution. Primarily, I felt this to be more of cultural or a social concern- the question of "whose voice takes precedence under a United States of Africa?" Whether social or not though, I have to say that it is a very valid concern. So, I think that the decision to apply the brake pressure and slow down was a very wise one. There are just too many issues that would have to be addressed before the discussion could become practical.

But underneath this, it should also be said that a more united continent could have the potential to bring about almost unfathomable macro economic benefit to certain areas and sectors on the continent. Believe it or not, just prior to the 9th Assembly of African Union Heads of State, I spoke with several experts on the subject of business across African borders and I believe that they bring some unique and tremendous insights to this topic.

One of the many people whose ideas on this topic have helped to shape mine was East Africa America Business Council Chairman and official Liaison of the East Africa Community, Mr. Patrick Ayota. I asked him, what did he think about the idea of African countries removing their borders all together and could there be any benefit to doing this and here's what he had to say,


"A more connected Africa would reduce the existing barriers that prevent African nations from doing more business with one another. Also, it could reduce costs.
However, it is not necessary to have a single president for such a union to work.
Here's what could work:

  • Creating a highway infrastructure linking the the countries together.

  • Removing visa requirements for members of the union

  • Creating a common market

He goes on to add, "On a smaller scale this has largely already done by the East Africa Community (EAC). There is now a single entity in the EAC that licenses companies moving products between Uganda, Kenya, and Tanzania. This means that a Ugandan company can hire a Tanzanian employee and offer the same benefits to that employee that a Ugandan employee would receive. Also, Mr. Ayota illustrates countries working out there differences, "because Kenya has a stronger economy than Uganda and Tanzania, it has agreed to allow its neighbors to temporarily impose small tariffs on Kenyan goods. While Kenya has removed tariffs on goods from Tanzania and Uganda."

What Mr. Ayota mentioned, as far as that cooperation between the East African nations is something that you don't often hear about coming from neighboring states on the continent, however this shows that it does and can happen. Of course, it has not always been this way between the three countries that he mentioned and it is in fact the result of an amazing amount of time, hard work, and diplomacy between the three nations. But, I believe that this is exactly what we need to see happen in order to make this discussion more practical. And I would think that it must happen, for a number of reasons. But primarily because today's voters on the continent are a lot more savvy than they were just one generation ago. Before they agree to go along with just any suggestion, my observation is that it would be better to demonstrate some of the benefits first. And isn't that the case around the globe? So, I agree with Mr. Ayota, before any serious thoughts of unifying all or a large part of the continent under one rule, there must be more connectedness on the basic items-like standardized educational systems with continental accreditation, looser tariffs, free movement of nationals across borders, better intra-roadways, communication systems, and a stronger system to support and document investment from one border to another. However, with the rise of the continent's regional economic blocks these things are slowly becoming materialize within smaller regions on the continent

I also had the pleasure of speaking with an investment researcher from the world acclaimed Barron's , Mr. Ryan Shen- Hoover. I asked him roughly the same question that I asked Mr. Ayota and Ryan's response was focused more along the lines of stock markets across the African continent and what these stock markets might look like if they were merged into one market.

Here's what he says,

"In brief, I believe a continent-wide stock market would be a welcome development for all involved. It would greatly lessen the difficulty of opening trading accounts in a dozen or so different countries and therefore would be great for any investor seeking exposure to more than one country. It would likely also have the effect of unlocking value in some companies that are listed in markets that trade infrequently (e.g. Swaziland, Ghana, Malawi) and could have the opposite effect in some of Africa's more overheated markets ( e.g. Nigeria and Kenya).So, how would a common stock exchange be brought about? There are a couple ways it might happen.

One way would be for all countries to sit down and hammer out the structure of a totally new market. They would agree on listing and reporting requirements, trading rules, location, etc. One obstacle I see to this is that most countries take a degree of pride in running their own national stock market. It would take a lot of political will to dissolve them in favor of one continent-wide market.

The other way to achieve a common market is more organic. Already in East Africa we are seeing Kenyan companies trade on not only the Nairobi Stock Exchange, but the Ugandan and Tanzanian exchanges, too. This is called cross-listing. Some other companies cross-list on the Johannesburg and Namibian stock exchanges. If one of the big exchanges (perhaps Nigeria, Kenya, or South Africa's) would actively encourage cross-listings, we could see a common market develop quite q
uickly. And each country could continue to run its own national market if it wished to do so."

I like Mr. Shen-Hoover's notion of voluntary participation on the part of African stock markets, whereby exchanges in different across different African borders can decide whether to cross list based upon the perceived risk or reward, rather than having the idea imposed on them. This to me would seem like more of a natural course to the continent finding that ever elusive unity that the founding fathers of the AU through the Organization of African Unity dreamt about only one generation ago.

So we said all of this to say what? Well, what we are getting at is that like Mr. Ayota says it is possible to harness the economic power of a unified continent without necessarily having all the continent's nearly 1 billion human inhabitants under a single national banner. Furthermore, the steps mentioned here need not be mandated. In fact, mandates seem to stir apprehension within voters. Instead, a more gradual and laizzez faire approach might be the way to go about this. One more thing that I failed to mention earlier is that the African Union decided to support the further development of the continent's 14 regional integration groupings-I say that if nothing else ever comes out of that 9th Assembly of the African Union Heads of State this development in itself is major. Although, I wouldn't have minded hearing the AU discuss how to fully harness the power of the informal economies existing in different regions of the continent.


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Nkrumah-King (Mr. Ogo Sow this photo is for you, I appreciate what you do, you're the only person that I am in close contact with who attended the event and I hope that we can do a follow up story to this one together ) photo courtesy of Wikipedia
African Union Flag Courtesy of African Union


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Wednesday, July 25, 2007

“United States of Africa” Talk Ignores Crucial Issues

The African Union (AU) summit issued a road-map to a federation of African States (Accra Declaration) without mentioning a single idea on political or economic freedom for African citizens.

Continental union was the founding principle of the original Organisation of African Unity but it never stood a chance. African leaders refuse to face up to their own or their neighbours’ failures, whilst preventing ordinary Africans from using their ingenuity to build their own future.The AU summit was full of....................Read the rest of the post at http://businessinfocus.blogspot.com


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Friday, July 20, 2007

Zimbabwe needs other Africans' help

By Rejoice Ngwenya - Harare, Zimbabwe.
EITHER WE AFRICANS are blind, selfish and greedy or something worse is holding us back.No private radio or television station is allowed to operate in Zimbabwe, while it is almost impossible to register a private newspaper. Yet Robert Mugabe masquerades on the regional stage as the spokesperson for the beleaguered citizens of Zimbabwe. Today, South Africa's President Mbeki and his ilk treat Mugabe like a hero but Zimbabweans like dirt. South Africa goes on military "peacekeeping" forays to faraway Sudan and Burundi. Why does Mbeki not believe those countries can solve their own problems?
As a Zimbabwean I have seen my country turned from bread-basket into basket case and I can tell you that our educated and hard-working people are not fools but.................Read the rest of the post on http://businessinfocus.blogspot.com



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Wednesday, July 11, 2007

Is the United States of Africa is already here?


The proposal to officially create a United States of Africa may not have come at a better time than now when international trade is dictating the pace of development thanks to technological innovation. You may not have noticed but recent trends indicate that the United States of Africa is already here. Through various communication technologies, Africa has transformed into a large business unit.........click on the link to read the rest of the post. (http://businessinfocus.blogspot.com/2007/07/is-united-states-of-africa-is-already.html)

Type your summary here

Type rest of the post here


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Wednesday, July 04, 2007

II Carnival of Africa Enterprising

Don’t miss Carnival of Africa Enterprising on July 6, 2007 on the African Loft. Also, if you would like to submit your post please do so befor 10 pm on July 5, 2007 at blogcarnival.com

The primary theme of this issue is about be the current trade vs aid in Africa debate and the secondary theme will be empowerment through entrepreneurship.



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Saturday, June 23, 2007

Zambia's President Authors Piece on Trade and Aid

I really enjoyed writing this post about Zambia's President, who recently authored an opinion piece in The Africa Report about infrastructure, China, trade, and aid. I really hope that you enjoy it too!

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Thursday, June 21, 2007

Press Release

From Frederic Tape:

Richmond Va,June 12, 2007- Enrique Pierre’s first collection is on display.

Enrique Pierre clothing collection has officially been made available to the customers a few days ago. The customer, that understands and appreciates apparel that cleverly combined simplicity with fashion flair,will certainly include this southern line to their list of most preferred lines.

The Richmond's company has now the chance to share its message of love,love and more love with its customers and passerbys that would see the T-shirt worn by early adopters of the fashion line. It would an understatement not to say that love is at the center of what Enrique Pierre Clothing is about. Love for our creation, our customers and the joy we may provide through the statements written on our products are what is guiding the company.

The following statement summarizes oh very well our philosophy:"The Lollipop in the middle of the name represents all women of the World. There’s nothing sweeter than a woman!!! When God created woman he created the backbone of society. Women endure so much in their lives and still maintain their strength and beauty. We have lots of respect for women and these designs are the many ways we just want to say, “Thank You.” Thank You for No Monkey Business (Keeping It real), Thank You for Listening 2 Your Heart, Thank You for Just Loving no matter what, Thank You for Seeing Clearly through cloudy conditions, Thank you for your Strength and Beauty, Thank you for staying sweet, Thank you for Keeping Your Heart Clean,

Thank You for Speaking a Language That The World Can Understand (Love). The foundation of Enrique Pierre is love; this is where our designs come from. This is what society says is weakness when it’s displayed. We say differently; love is what got us here and love is what’s going to keep us here. We love the fact that we are making quality clothing at affordable prices but we love even more the impact of our designs. When you purchase any item from Enrique Pierre you are making a statement to us, and to the world, for Change. Together we can flood the World with images that will impact lives everyday in a positive way. From the bottom of our hearts we thank you for being a vital part of the movement. We can do more together than we can apart. Thank you for being a World changer. God Bless You All."

Visit the official site of the company at http://enriquepierre.com,to find out the different designs offered for the launch of this clothing company.

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Wednesday, June 20, 2007

The Discussion is Here to Stay-Angel Africa on Trade vs Aid

Hi, I just wanted to highlight a very beautiful discussion that I witnessed and participated on recently. The discussion took place on Angel Africa. It all seemed to start when Emeka Okafor of Timbuktu Chronicles commented about TED. From there, Amini Kajunju, the director of Angel Africa chimed in with her thoughts on why trade is so relevant in Africa right now and from there the conversation got quite interesting. Hopefully, they don't mind me doing this but I will post part of the conversation below.

Emeka:


For a taste of where the Aid debate is going take a look at the Andrew
Mwenda vs Bono encounter at the recently concluded TED Global event :

On the first day of the conference, the discussion between Andrew
Mwenda and Bono electrified the audience and those following the conference via
blogs.Here's what bloggers both inside and outside the conference had to
say:

Felix Salmon's Market Movers blog for Portfolio.com gives an
overview:

... the conference kicked off with[William] Easterly-by- proxy Andrew
Mwenda. Ethan Zuckerman was there tohear Mwenda run down the standard Easterly
talking points –- but at TEDconferences, the points have a way of talking back.
And when Mwendachallenged the audience to name a country where aid had led
todevelopment, Bono, of all people, stood up and named Ireland, in thedays of
the potato famine.
Bono was scheduled to speak [in Session] Two, and he
devoted his time not to his own ideas but to rebutting Mwenda's. ...

And a report on the confrontation as it went down comes from fifthculture:

Andrew Mwenda [is] a journalist and socialcritic (read troublemaker –
my kind of guy), and passionate speaker.... [A]ccording to Andrew, all of us
bleeding hearts from richcountries are doing the absolute wrong thing by giving
aid to Africancountries. Andrew asked "has anyone in this room benefited or had
arelative who benefited from aid?" A surprise answer came from Bono (allI could
make out of the comment was "bullocks," but Bono would elaborate a little
later). Liz Dolan from the Huffington Post reports in
detail:

Addressing the growing feeling that debtrelief will not get African
nations nearly as far as western directinvestment, Bono said "You'd think
somebody farted in here when thewords 'debt relief' came up -- ooh, that's so
uncool. Well, I will tellyou that 20 million children in Africa are going to
school today as adirect result of debt relief, 3 million right here in Tanzania
alone.
David McQueen reports on the talks and the
reaction:

... Talking to a number of peopleafterwards there were many mixed
messages. Most believed that tradeshould be the primary focus but with incumbent
governments still verydependent on aid that the focus should change. Personally
I lean moreto the position of Mwenda. Here is a man looking at the situation
fromthe ground, and with possible prison sentences hanging over him fromhis
native Uganda. OK he may not have all the solutions but his disdainfor people
looking down at Africa trying to solve issues from theoutside in definitely
resonated with me and many others.

Ecorica-Blog offers some more background on
Andrew Mwenda's analysis:
One important remark: He admits that aid can bring
humanitarian relief and can save lives, but he does not believe in the idea that
aid can support long-term development of asociety.

Live-blogging hero Ethan Zuckerman writes at length about both Mwenda's and Bono's talks. (The title of this blog post is borrowed from his
indispensable blog.) White African also offers a good look at the talks, as does Ramon Thomas.

Technorati tags: Africa, Andrew Mwenda, Bono, TEDGlobal, TEDGlobal2007 ..."



From Nvalaye Kourouma:

Folowing up on Emeka's email, this an article that further expand on what
Afirica really needs. I believe entrepreneurship and business is what is
needed adn any aid has to be directed towards creating the right environment for
business to serve people. Any thought?
____________ _________ _________
_________ _________ _________ _________ _________ _________ _________ _________
_________ _________ _______
What Does Africa Need Most: Technology or Aid?

By JASON PONTIN for New York Times

I AM just back from Tanzania in East Africa.

"...Very poor farmers and their children stared curiously at me as I
passed.

In the afternoons, I attended the TEDGlobal 2007 conference, held by the
Technology, Entertainment and Design organization in the modern Ngurdoto
Mountain Lodge. The contrast between the two experiences troubled me.

TED conferences, mostly held in Monterey, Calif., are invitation-only
affairs, are attended by the aristocracy of Silicon Valley and are known for
their adventurousness in drawing together wildly disparate trends in technology,
business and the arts.

On this occasion, Bono, the Irish rock star and champion of African
causes, had persuaded the conference's organizer, Chris Anderson, to invite the
usual crowd, as well as African entrepreneurs, activists, health care
professionals and artists to this tropical, leafy region midway between the
Serengeti Plain and Mount Kilimanjaro.


But beyond this Panglossian message, however much a corrective to the
common images of African misery and however flattering to the pride of TED's
African attendees, was something that everyone at the conference knew (and which
I saw every morning on my runs). Whether measured by per capita income or by the
gross domestic product of its nations, Africa is the poorest place on earth. The
question that the conference was really exploring was this: How can we make
every African family richer?

At TED Global 2007, I witnessed one small skirmish in a larger ideological
conflict between those who believe that Africa needs more and better
international aid, and those who think entrepreneurialism and technology will
lift the continent out of poverty and thus reduce its miseries.

Predictably, TED's attendees and speakers were spellbound by technology and
entrepreneurialism and, at the same time, distrustful of international aid.
"What man has ever become rich by holding out a begging bowl?" asked Andrew
Mwenda, an Ugandan journalist and social worker, now a research fellow at
Stanford in California.
Mr. Mwenda argued that $500 billion in international
aid over 50 years had achieved nothing in Africa and that the persistence of
African poverty could be explained, in part, by aid. Charity, he said, had
"distorted the incentive structure" and had persuaded the brightest Africans to
work for corrupt governments. He called upon African entrepreneurs to build
African businesses and the American investors in TED's audience to finance them.

Echoing Mr. Mwenda, Russell Southwood, the publisher of Balancing Act, a
newsletter about technology in Africa, implored African entrepreneurs and
Western business leaders to "invest in shortages." Africa, he said, could
"leapfrog" the industrial technologies that Westerners use and build truly
21st-century technology systems and networks.
As an example, Mr. Southwood
pointed to a near absence of telephone landlines in sub-Saharan Africa; cellular
networks for mobile phones could quickly bring modern communications to hundreds
of millions of Africans.

At least one of the African attendees of the conference was representative
of the kind of technological entrepreneurialism that the show advocated.

Alieu Conteh, the chairman of Vodacom Congo, was born in Gambia, in West
Africa, 55 years ago and moved to Congo in 1981. For years, he was a successful
coffee buyer and exporter.
Congo is about the size of Western Europe and has
an estimated population of 65 million people. It is one of the least-developed
nations in the world, with less than 300 miles of roads, most of them in poor
condition.

MR. CONTEH is building a telecommunications network where none existed
before. With 600 employees and 5,000 contractors, Vodacom Congo is one of his
country's biggest employers. If he realizes his ambition to create a stock
market and offer shares in his company, he will have created new wealth. But the
tale of Vodacom Congo also illustrates the difficulties of creating new
businesses in Africa and the limits of entrepreneurialism as an alternative to
international aid.

Mr. Conteh accepted risks that few businesses would, and for many years he
found it impossible to attract more than a few eccentric investors. More
significant, it has taken Mr. Conteh more than a decade to provide
telecommunications to less than 10 percent of the country. While the existence
of Vodacom Congo may one day help build other businesses, the country's general
poverty is not alleviated by the existence of the company.

In truth, Africa will need both investment in entrepreneurialism and aid,
intelligently directed toward education, health and food..."

And from Amini Kajunju:

"...Africa needs entrepreneurs like the men who started Vodacom or Celtel.
It does not need aid. We need investors. Here is the truth of the matter as Mr.
Mwenda said:

Mr. Mwenda argued that $500 billion in international
aid over 50 years had achieved nothing in Africa and that the persistence of
African poverty could be explained, in part, by aid. Charity, he said, had
"distorted the incentive structure" and had persuaded the brightest Africans to
work for corrupt governments. He called upon African entrepreneurs to build
African businesses and the American investors in TED's audience to finance
them

Frankly, if it was up to me, I would put a 30 year moratorium on
aid to Africa. I would create a world where African goverments only accept "free
trade" and investors. No AID. No Bono..."

And here is a section of my comments:

"...Thinking further let me say that Pontin's argument pre-supposes that it
almost sounds as if Mr. Pontin thinks that all 900 million plus on the African
continent face poverty. Of course we know this to be grossly inaccurate.
Furthermore, by default hisargument seems to lump all of Africa's poverty into
thecategory of being situational (resulting from one-timecatastrophies) , again
we know this to be untrue aswell. In fact, though I dont have figures I would
probably say that this would probably account for less than 15 percent of the
poverty that he talks about. So Mwenda and Ayittey do have a very solid argument
then, but it is only that I have not heard them address the types of poverty
resulting from natural or human disaster.

However in the vast majority of cases on the African continent where
communities seek to reduce or eliminate poverty, there is a strategy that is
being tested by organizations like Technoserve, which I think will help
immensely..."

Also, for the record I believe that trade and investment on the African continent will continue to be the driving force for reducing the income gap between some of the continent's lower producers and some of the world's middle and upper income nations. However, in when it comes to tackling humanitarian issues aid makes more sense. I will say that the number of disasters on the continent is smaller than the media will have you think. Thus, more trade than smart aid is needed.

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Thursday, June 14, 2007

Kenya-Libya ties need more than oiling


A new baby has been born in Africa and is changing the way Business is being done in Kenya, the baby is Known as Smartbiz Africa can be reached through www.smartbizafrica.com

I extracted some of the information in the editorial to give you a lead but you can read more Kenya


"Apart from trading blocs, the other way of increasing trade among countries is through bilateral ties. Each African Union member belongs to at least a trading bloc or a grouping that seeks to promote cross-border exchange of goods and services. Many such outfits always have problems and bilateral ties have in the past come in handy to save collapsing blocs.



A good example is the East African Community, which collapsed in 1977 but was revived in the late 1990’s after bilateral ties between Kenya, Tanzania and Uganda solidified, making its leaders to see the sense of working as one. This is the context in which we see the new-found love between Kenya and Libya.


This is a good development. While Libya has had a fair share of international relations problems with the West, such as the 1987 Lockerbie bombing that locked it in a drawn-out spat with the US for years, working with other African countries to boost trade is the best thing that a country with high oil resources can do.


Kenya appears to be among the countries set to benefit from trade with Libya, which could provide a new market for its tea and coffee and cushion it from the volatile international markets and retaliatory partners like Pakistan. The latter always threatens Kenya with freezing tea imports if it imposes restrictions on its rice, as it did in early 2005 when the East African Community Customs Union came into force.

This nascent relationship with Libya should be nurtured to maturity, as the north African country has promised to boost investments in East Africa’s oil industry, through Tamoil Africa. Already, reports indicate that the oil company has won a $300 million (Kshs21 billion) tender to upgrade the Kenya Petroleum Refineries Ltd, which supplies Kenya, Uganda, Rwanda and Burundi with refined oil products - barely a week after Kenyan president Mwai Kibaki held talks with Muammar Kadaffi in Tripoli.


Tamoil has been increasing its presence in East Africa through acquisition of ExxonMobil’s service stations as well as supply distribution facilities. With such determination, Kenya is right to lure Tripoli to its side, as this could guarantee cheaper oil and thus reduce energy costs for producers.


Africa has substantial oil reserves, with Nigeria producing nearly 4 per cent of global supplies. Exploration efforts are ongoing in other African countries and the prospects look great. Collaboration between the oil producers and non-producers will help the continent move forward and have a bigger say in world economic matters."


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Monday, June 11, 2007

Developing Story: Explosion in Nairobi








Nairobi, Kenya
Monday June 11 2007

There has been an explosion today in Nairobi in what is suspected to be a suicide bomber attack. Apparently, this was carried out by a man carrying explosives in a bag along the city's Moi Avenue (which is near a very busy commuter bus stop and two major international Hotels - Ambasadeur Hotel and Hilton Hotel Nairobi)
Only one person has been confirmed dead at the moment but sources at the scene say that there may be more than 10 casualties.
Unconfirmed reports suggest that the suicide bomber timer settings were wrong and that the bomb exploded prematurely. All possible scenarios based on the location and the timing of the explotion suggest several targets most likely the city's transport vehicles branded CITY HOPPA. The man may have been headed to board one of the buses but did not succeed as the bomb exploded before he reached the target. The area has been sealed off for more investigation.

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Sunday, June 10, 2007

Kenya, Amplifyng the Trade Vs Aid Discussion




As the TED 2007 conference becomes a new chapter in Africa's history books, one issue will continue to be brought up in the media. That is the issue of trade versus aid. To me no story displays the chasm that has occurred between the two supporting camps like the two examples that I am about to highlight for you. I don't know if it's a coincidence or what...but two of the most recognizable text-book cases for each theory come from rural Kenya.

So first let us look at the evidence for supporting trade as a means of poverty reduction. For that we shall go to the small town of Ndaragwa in Central Kenya.

Here's the story as Technoserve recalls it:



"...Before 2001, business activity in the town of Ndaragwa had virtually ceased. The 10 small stands and one hardware store that lined the street of this small town in Central Kenya were generating barely enough income to survive. Local residents depended on small, one- to three-acre dairy farms to earn a living. Isolated by dilapidated roads in this dry, mountainous region, the farmers had no option but to sell their milk to traveling middlemen who notoriously underpaid them. Frustrated by their situation, a group of over 2,000 farmers founded the Nyala Dairy Multipurpose Cooperative Society.

The Nyala farmers' dream was to construct their own cooling plant so they could sell their milk directly to Kenya's large dairy processors and avoid middlemen. They turned to TechnoServe for help. In order to raise funds for the plant's construction and new equipment, TechnoServe helped the Cooperative to create a farmer-owned business. Nyala's 2,700 members became dairy shareholders by contributing $28 each -- not an easy task in a country where over 58% of the population earn less than a dollar a day. But with this structure in place, financing was secured and in 2002, the plant was completed. On the first day of operation, 3,000 litres of milk were collected.

With TechnoServe's guidance, Nyala Dairy's collection has since quadrupled to 12,000 liters per day supplied by 2,100 small-scale farmers. The largest milk processor in Kenya, Brookeside Dairy Ltd., is now purchasing Nyala's milk, and because Nyala Dairy is a reliable, high-quality supplier, it can pass along higher prices to its smallholder farmers. Recently, Nyala paid $86,258 to rural producers -- the highest monthly payment since its founding. The Dairy also provides a store that offers affordable cattle feed, veterinary drugs, and credit for its members.

In three short years, the Dairy has already increased incomes for thousands of poor farmers, but what it has done for the town of Ndaragwa is truly extraordinary. Nyala Dairy has created a standard of living that none of the farmers ever dreamed possible..."

Now in comparison with Ndaragwa is another rural community in Kenya called Sauri. Sauri is perhaps the most unique village in Africa.

I'll let Sam Rich and The Wilson Quarterly do the honors and explain why Sauri just might be Africa's dream village:

"...Sauri must be the luckiest village in Africa. The maize is taller, the water cleaner, and the schoolchildren better fed than almost anywhere else south of the ­Sahara.

Just two years ago, Sauri was an ordinary Kenyan village where poverty, hunger, and illness were facts of everyday life. Now it is an experiment, a prototype “Millennium Village.” The idea is simple: Every year for five years, invest roughly $100 for each of the village’s 5,000 inhabitants, and see what ­happens.

The Millennium Villages Project is the brainchild of economist Jeffrey Sachs, the principal architect of the transition from ­state-­owned to market economies in Poland and Russia. His critics and supporters disagree about the success of those efforts, often referred to as “shock therapy,” but his role in radical economic reform in the two countries vaulted him to fame. Now he has a new mission: to end poverty in ­Africa...

It’s not this diagnosis of Africa’s problems that makes Sachs’s theories contentious, but his proposed solution, which might be called shock ­aid—­huge, sudden injections of money into poor areas. Over five years, $2.75 million is being invested in the single village of Sauri, and an equal amount will be sunk into each of another 11 Millennium Village sites that are being established in 10 African ­countries...

Sachs has persuaded Western governments, local governments, businesses, and private donors such as Hollywood stars and international financiers to foot the bill. Under the auspices of the Earth Institute, the project he heads at Columbia University, he has gathered specialists in fields from HIV/AIDS re­search to soil science to work out master plans for these dozen ­villages...

But economists aren’t Sachs’s only critics; others within the micro school he wants to win over are asking questions, too. They want to make sure communities such as Sauri are not simply passive recipients of handouts from donors and lectures from experts, but are actively involved in making decisions about their own development...

Sauri faces the same economic challenges it always has. Most farmers are still growing subsistence crops and depleting their soils. They could instead be growing crops for market or investing in livestock. ­Low-­cost improvements in farming techniques, such as the use of manure and other organic methods that are more sustainable in the long run, are only beginning to be promoted. Growth will be slow because taxation, bad roads, and a lack of electricity need to be addressed at a national ­level..."


Now of course, these aren't the only two forms of aid and trade initiatives going on in Sub-Saharan Africa, however they seemed to illustrate why supporters of both trade and aid in Africa are so hopeful about their respective tool kits. But what do you think, is there enough evidence for you to conclude one strategy works better than the other at reducing the poverty gap in some of Sub Saharan Africa's rural communities?

Thanks Osize for your contribution to this discussion!

photo courtesy of Alison M. Jones Photo Gallery

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Friday, June 08, 2007

Link On TED Global

I wrote a post about Africa Bloggers and TED Global on beninmwangi.com.

Please let me know what you think about it...


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Monday, June 04, 2007

June 6, 2007 Conversations from beninmwangi.com

This sort of my attempt to keep this blog going and to see if we can give Africa Ready for Business an independent identity. Almost every week as a result of my work with beninmwangi.com there are numerous conversations that spring forth ( they normally pertain to business, entrepreneurship, and or Africa. The conversations may usually be found in the comments section of beninmwangi.com).

This is a way of keeping the conversations going and showing my gratitude...

And these are this weeks participants:

Rich McIver

How To: Bootstrap It (27 Tips)

Hey You Entrepreneurs It Starts like this:

"...There are many different ways that you can start a business without burying
yourself under a mountain of debt, paying sky high interest rates on business
loans or handing over stake and ownership to venture capitalists or other
investors.You have to have money to make money.

Whether you are able to use money that you have saved in the past or you
need to rack up a temporary balance on your credit cards, there are plenty of
places to find money. You just need to figure out which method best suits the
needs of your business.

1. Personal Savings: This is the place to start when it comes to
bootstrapping a business. Dip into your personal account and fund your business
from money that you have saved. There may not be enough for this to be the sole
form of financing but, if there is enough, you won’t have to worry about any
debt or interest rates on loans.

2. Friends and Family: Ask your family and friends if they have any extra
money that they would like to invest. Agree on a payment plan, with interest,
and offer them future stake in the business if it turns out to be a
success..."



Africa Liz:


MOZAMBIQUE AFRICA'S RISING STAR

You've got to the pictures on Liz's site...

"...Mozambique is the world's 36th-largest country.

Mozambique's first inhabitants were San hunter and gatherers, ancestors of
the Khoi san peoples. Bantu-speaking peoples, who were predominantly iron
workers and farmers, began migrating into the area now known as Mozambique from the distant Niger Delta. Soon, scattered kingdoms began to arise, including
those of the Shona, which extended from present-day Zimbabwe into Mozambique,
and the legendary kingdom of Monomotapa, southwest of present-day Tete.
Meanwhile, from around the 8th century AD, sailors from Arabia began to arrive
along the coast.

Economic reform has been extensive. More than 1,200 state-owned enterprises (mostly small) have been privatized. Preparations for privatization and sector
liberalization are underway for the remaining parastatals, including
telecommunications, electricity, ports, and railroads. The government frequently
selects a strategic foreign investor when privatizing a parastatal.
Additionally, customs duties have been reduced, and customs management has been
streamlined and reformed. In 2006 Mozambique exported U.S. $2.43 billion worth
of goods and imported U.S. $2.82 billion worth of goods. Support programs
provided by foreign donors and private financing of foreign direct investment
mega-projects and their associated raw materials have largely compensated for
balance-of-payment shortfalls.

The nation's latest big investment project is a hi-tech $1.2bn ($660m) gas
plant, situated in the middle of bushland in the south of the country. The
project is owned and run by the South African energy company Sasol.The
government has privatised the port and boasts of its ability to attract big
foreign investors, such as Sosol and BHP Billington, which has built a $2bn
aluminium plant just across the bay. Mozambique has been classified as one of
the major destinations for investment in Africa.

The twin pillars of Mozambique's foreign policy are maintenance of good
relations with its neighbors and maintenance and expansion of ties to
development partners..."


Nico Liebenberg

Executive coaching enhances quality of life

From an executive coach:

"...Executive coaching is a common leadership development practice among
business leaders all over the world.

Coaching can be defined as “an ongoing relationship that helps clients
produce fulfilling results in their personal and professional lives. Through the
process of coaching, clients deepen their learning, improve their performance
and enhance overall quality of life..."


So this concludes this edition. Hope to hear from you again!

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Press Release-Don't Miss Africa's SMME Awards

By way of David S. Fick*

###

PRESS RELEASE




ONE MONTH LEFT TO ENTER FOR THE PRESTIGIOUS
AFRICA SMME AWARDS




SMMES IN SOUTH AFRICA, WEST AFRICA, EAST AFRICA, CENTRAL AFRICA AND
NORTH AFRICA MAY ENTER…
ENTER NOW….


In line with the NEPAD’s drive to support and profile the role that SMMEs play in promoting economic growth and job creation, the Africagrowth Academy in partnership with NORSAD AGENCY, MOMENTUM FUNDSATWORK, SEDA, and Xstrata SA and other enterprise support agencies will be organising the 2007 Africa SMME Annual Conference and Awards Ceremony on the 25th of October 2007, at the Crown Reef Convention Centre, Gold Reef City Hotel, Ormonde, Johannesburg, South Africa. The Conference and Awards ceremony will be aimed at presenting latest trends in SMME development in the continent and recognising and presenting awards to successful SMMEs by sector. The main aim is to support and showcase Africa’s finest entrepreneurial achievements in the SMMEs sector were the winners of each category will be announced at a gala dinner the evening of the 25th of October 2007.

IS YOUR BUSINESS THE BEST IN AFRICA?

Your small, medium or micro enterprise (SMME) may be recognised as the Africa SMME of the Year.

If your business has grown in a responsible and sustainable manner over the last few years and is furthermore contributing to the African and local economy, we feel you need recognition.

Businesses from all sectors, with a turnover ranging between R40 000 and R10 million, may compete for this awards and the ultimate honour will be to achieve the overall award for the SMME of the Year. There will be extensive media coverage and business exposure as well as prize money of R15 000, R20 000 & R25 000 for 3rd, 2nd & 1st place and R30 000 for the overall winner.

Winners will take the spotlight at a gala awards evening in Johannesburg on the 25th of October 2007.

Enter now for this very exciting competition and your company might be the 2007 AFRICA SMME of the year.

Closing date for entries: 30 June 2007

Contact
Dina Potgieter
Africagrowth Research
PO Box 3628, Tygervalley, South Africa, 7536
Tel: (021) 946 1791
Fax: (021) 946 1652
Email: dina@africagrowth.com
Website: www.africagrowth.com
###


*This communication is from David S. Fick, author of books concerning successful entrepreneurs creating jobs in all 53 countries of Africa and improving the quality of life in their African communities.

The majority of 2003, 2004, and 2005 Africa SMME Awards winners and finalists are featured in the book Africa: Continent of Economic Opportunity Africa: Continent of Economic OpportunitySTE Publishers, Johannesburg, South Africa, November 2006, Please visit Website: http://www.ste.co.za/ for description and availablitity in Africa and Europe.


For immediate availablity in the United States, please contact the author David Fick. EMail: WhlgEagle@aol.com and Fick will immediately ship at $50 per book, shipping included within the United States. Proceeds from sales from author's 246 book inventory are allocated 100% to support Doctors without Borders' medical relief projects in Africa.

African Entrepreneurs in the 21st CenturyBeing researched for 2008 publication.
Please suggest to the author David Fick, EMail: WhlgEagle@aol.com successful entrepreneurs to feature in this book. The majority of 2006 and 2007 Africa SMME Awards winners and finalists will be featured in this book. As with my first and second books, in recognition of everyone's support author's royalties (percentage of print runs) due to me from sales of the third book will also go to Médecins Sans Frontières/Doctors Without Borders (MSF) to support their medical relief projects in Africa.

Entrepreneurship in Africa, A Study of SuccessesQuorum Books, March 2002
Please visit http://www.greenwood.com/catalog/Q536.aspx


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Sunday, June 03, 2007

Trade Versus Aid in Africa, Who Wins?

"Trade Versus Aid in Africa, Who Wins?

Posted by beninmwangi on June 4th, 2007

It seemed like the time was right for me to pen this post about trade -vs- aid. This is a discussion that has a tremendous amount of relevance in Sub Saharan Africa. But it is also relevant in other parts of the world where developing economies are predominate.

Now of course the concept of nations climbing out of the low income status by trade is not a new one. In fact the concept has been around for nearly four centuries and was made popular by Adam Smith. He posited that national national wealth creation comes by way of nations playing to their natural and practical strengths therby producing the items that other nations demand.

So then “what’s the big deal?” some may ask. In other words if it has already been established so long ago that sustaining an economy through production, as opposed to aid, is desirable then we probably shouldn’t be needing this conversation. But we do need it."

Read the rest at Trade Versus Aid in Africa, Who Wins? « beninmwangi.com

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Friday, June 01, 2007

African Path Interview Illustrates Kenya's Competitive Advantage

For those of you who have not yet had a chance to read this interview, I highly recommend that you do it. The interview is between Joshua Wanyama, Editor of African Path and Keith Steel, owner of apparel maker Sandstorm Kenya.

What I enjoyed about the interview is that it may have pointed out where Kenya’s competitive advantage lies amongst her global competitors.
Here is an excerpt:

“…Around 95% of all bag and accessories manufacturing comes from China,” Keith says. “We are proud of the fact that everything that goes into our bags are from Kenya. We support Kenya, the Kenyan heritage and its people. The whole operation in Kenya is run and operated by Simon Mwangi, our very strong and able manager. All our employees are Kenyans. This is a commitment that we will continually uphold as we grow Sandstorm.”

“Sandstorm in no ordinary Kenyan company and neither is its owner Keith Steel. The rich heritage that the company embodies is a direct reflection of Keith. While Sandstorm is a relatively young company, Keith has managed to create a mature brand that conjures a romantic image of Africa. That of Indiana Jones battling through tough terrain while on safari seeking to conquer new lands. Wading through rivers in the jungle or crawling through the African bush. Keith says, “We are a safari-lifestyle brand and people expect the highest quality on our products. This shouldn’t be confused with luxury. Our customers are those with active lifestyles seeking lasting quality. They love the outdoors, care for the environment and appreciate authentic products.”

Keith has a great love of Africa since his childhood in Kenya. He loves nature and the abundant wildlife in Africa. His love has extended to nature conservation. Sandstorm has developed a relationship with Lewa Wildlife Conservancy located on the Laikipia Plains in Northern Kenya. The conservancy aims to conserve wildlife, educate people, work with local and international governments and change people’s attitudes towards development. Sandstorm donates a portion of every bag sold to Lewa…”

Read the rest here and get Benin Mwangi's take on how this illustrates Kenya's and possibly the rest of Africa's competitive advantage.

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Tuesday, May 29, 2007

from beninmwangi.com: A Top Google Africa Site

Recently, I was scouring the web for more data on marketing African businesses to companies worldwide and I came across a most informative site. No wonder they are also #1 on Google for a number of topics centering on Africa.

ata.jpg

We are talking about Africa-ATA otherwise known as the Africa Travel Association. Now in addition to this site housing the association website, they are also home to the organization’s media publication-Africa Travel.

Now I know what you may be thinking, that this site may not cater to those seeking business information about specific regions of the continent, but to the contrary-they have quite a bit of detailed information. For instance, read this magazine forward by one of the magazine’s editors Jerry Bird. It is about Ethiopia and the rise of one of Ethiopia’s many treasures-Ethiopian Airlines.

Of course, you can also find the type of information that you would expect on a tourism and travel site like:

  • hotels
  • airfare
  • cruises
  • safaris ( for eastern and southern Africa)
  • food
  • etc

But again, I can appreciate the other parts of their site like-investment promotion, fashion, African embassies, and other trade links too. Besides them being a storehouse of good information another thing that I like is that they have carefully balanced the information. They somehow manage to give readers a glimpse of all 53 countries in Africa, which is not an easy task. It looks like this month their focus is on Ethiopia.

In closing, I hope that you have a chance to visit their site and let me know what you thought about this top Google ranking Africa website.

photo courtesy of : Africa Travel Association




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Thursday, May 24, 2007

Adeolu Akinyemi Blogger on the Move!

While we are on the topic of exceptional bloggers in the Africa Enterprising Blog Network, I wanted to point out another top notch blog. We’re talking about Adeolu Akinyemi , who blogs from Nigeria. Adeolu is one of the first Africa bloggers that I really started noticing during my early blogging days. I don’t think that I’ve seen any one blogger show more growth within a short span of time as he has. When I started reading his blog in November of 2006, I would normally see about 15 to 16 comments per post and now they have mushroomed to an average of perhaps between 55 to 70 comments per post.

In this post he teaches us about Robert Kiyosaki, the author of “Rich Dad, Poor Dad“. For anyone that has not already had a chance to give “Rich Dad, Poor Dad” a good read, I would highly recommend opening it’s covers. It provides some very unconventional, but useful insights into how to become a successful business person. That’s what Mr. Akinyemi’s blog is all about, as well. This post talks about Kiyosaki’s board game called Cashflow 101 which teaches us how to win at the game of entrepreneurship.

Here is a short excerpt of Adeolu’s post, that teaches us how to become financially intelligent business people:

There are two parts to accounting for every penny (kobo), one is done ahead of spending, called budgeting, and the other after spending, called accounting. Budgeting is planning, this is crucial to financial success. The pain of accounting is not absolutely useful on the short term, but on the long run it gives you a clear picture of your priorities.

Something that Adeolu does in this and many of his other posts that shows us how to go above and beyond the call of duty in writing is that he breaks his lessons up into small bite sized pieces that are easy to digest. And then, to top it off he invites his readers to a fun-filled evening of playing the game Cashflow 101.

So when you get a chance, definitely get over there and check this post out!

This post was sponsored by:



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Eye Opening Post from White African « beninmwangi.com

Eye Opening Post from White African « beninmwangi.com: "Hi, I just wanted to briefly highlight a post that really caught my attention today. The post comes from fellow member of the Africa Enterprising Blog Network-White African.

In a nutshell it is about how a company in the domain buying business teamed up with the West African nation of Cameroon and made US$ millions as a result of a mistake!"

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