Posts Tagged ‘junior achievement

08
Sep
09

We don’t want money, we need Skills!

The views expressed on this blog are my own and do not necessarily reflect the views of Oracle.

“We don’t want money, we need skills” was a comment of some of the attendees during the Ghana Competitiveness Forum that was held in Accra in August 2009.

Following the visit of President Barack Obama to Ghana the Business Council on International Understanding organized the forum. A delegation of Members of the House of Representatives of the United States and participants from the public and private sector met over a round table discussion to seek solutions to make Ghana more competitive and attractive to foreign investors.

Not only has Ghana transitioned peacefully to a new government after its recent elections but today you will find that the private sector is taking a leading position as well to drive the economy forward. A new generation of business men and women are now limited by available skills more than by venture capital or other financial impediments.

With the discovery of oil in Ghana an entire new set of skills are required and some international companies operating in Ghana have already started to train people to get ready to embark on deep sea oil exploration.

If you drive around Accra you will also see a lot of activity in the construction sector. New hotels and office buildings are under construction and houses in the residential areas are being built to accommodate the increased demand.

Tema, one of the ports of Ghana receives cargo that finds its final destination in some of its neighboring and land locked countries such as Burkina Faso for instance.

Most of this economic activity also requires information. Here lies in itself another great opportunity for improvements on productivity and efficiencies to become more competitive using today’s information technology.
Border formalities for the most part rely on paper based systems and delay a swift passage. Trucks lose a lot of time during this process. This is just an example of course to illustrate the vast amount of opportunity that exists and at the same time the challenge we face to get enough skilled labor to fulfill the demand.

Golden times for training institutes, vocational education centers, universities and business schools.
Golden times for the Diaspora as well who would like to return to their country and exploit the opportunities benefiting from the acquired international experience.

Training however is only part of what a country like Ghana needs. Some of those who are driving business in Ghana are either locally trained staff or staff trained overseas but in both cases these business leaders have enjoyed international exposure that has provided them experience to deal with complex business situations. These leaders can run businesses up to international standards. They have the capacity to compete internationally. If companies are certified to international standards they will find it easier to export their products and services. Skills and standards are key to achieving sustainable growth in today’s global business.

One of the requests to the members of the House of Representatives was to support an exchange program that will allow for talented Ghanaians to work for a period of time on overseas projects and to receive skilled labor from the US in this case, to work and transfer skills in Ghana so that both business leaders and companies become more competitive.

Of course there are areas where foreign direct investment and loans are still required to assist the development efforts that Ghana is undertaking and where the public interest is better served by a public sector owned solution rather than a private sector one.

When the business community starts asking for skills rather than for money as a first priority it means that its leaders clearly see the opportunity. The opportunity has probably been there for a long time, but today the country is enjoying the fact that democracy and private initiative have both evolved and met each other ready to execute.

Things are changing in Ghana and in Africa and for the better.

© Desi Lopez Fafié

23
Jul
09

African Cuisine for the die hards…

chillies 03

Do you like spicy food?
Do you plan to go to Nairobi ?

I recommend Handhi’s to you. It means “clay pot” in one of the Indian languages and the restaurant serves a number of dishes using these clay pots. The variety and quality of the food is superb and among the Indian restaurants in Africa that I know I rank it within the top 5.

Those of you who chose to sit inside the restaurant instead of at their terrace, can see the cookes at work through a hugh glass wall that separates the kitchen from the main restaurant dining area.

In East Africa it is mostly the Indian cuisine that offer some very spicy dishes.  The African dishes in this part of the continent are generally mildly spiced. In West and Central Africa however the African dishes can be extremely spicy.

poulet yassa

Poulet Yassa

In Senegal you can order Poulet Yassa, stuffed chicken with lemon and onions served with rice and you have a choice to have some yellow chillies on the side and mix these with the food.

poulet yassa 02

Africans enjoy their food most when sharing a dish with their family or friends.

Pepper sou[

In Nigeria,  Pepper Soup can be made of any kind of fish or meat depending on your preference.  If you are a Non African Adult with strong taste buts you may try it, but I recommend you take a very small sip first to see how you respond before going for the big spoons.

Pepper Soup

These are just a few examples since spicy food is very common in the West- and Central African cuisine.

Those of you who are not used to chillies should start carefully.  It is an acquired taste that you develop over time and gradually you can deal with larger quantities of chillies or use stronger varieties of chillies.
The Naga Jolokia and the Red Savina Habanero are the strongest versions and contain the highest levels of capsaicin 800.000 – 1000.000 and  350.000 – 570.000 respectively. The Naga Jolokia originates from North Eastern India and holds the Guinness World record. Compare this to white pepper that has 500 units of capsaicin or green tabasco sauce that has about 600 to 800 units.
The Scoville scale measures the heat levels in food by measuring the amount of capsaicin present.

chillies

One of my colleagues from Europe asked me if she could have a sip of my crab soup I was having at a restaurant in Dubai that had made some special orders on our request. Four of us were living in or originated from Africa while we had  two Europeans with us that evening ,my colleague being one.
We had ordered two separate bowls of crab soup, one hot one not. I warned my colleague and told her that this was seriously hot. She insisted.
The next 10 minutes or so all the waitresses were running back and forth to calm the effect of the chillies.
When she recovered somewhat and regained her ability to speak she started to call me names and asked me how someone could enjoy something like that ? We felt sorry for her but at the same time we could not stop laughing either. When she ran to catch her flight she was smiling again.

If you like spicy food I advice you to learn the traditional name of chilly for each country you visit. If you go to a local restaurant as
a Mzungu (white man)  and ask for very spicy food, you may otherwise not get what you ask for. Since not every European or American that visits Africa can handle the intensity of some of the dishes, waiters are careful and will bring you a very mild version of what you requested.
In Nigeria I asked for red chillies and got sweet red peppers instead. So I asked the waiter the name of red chillies in Yoruba. Now I got my “atta rodo”, as they call it and  every time I visit a restaurant in Nigeria and ask for fresh chopped atta rodo I am in business.

An Indian friend of mine once advised me to have some raw onion on the side whenever you are not sure of the food you are about to have. This simple addition will keep you out of trouble in most cases. I realized the effect of it when on another occasion I had dinner with four of my colleagues in a nice restaurant in Ghana. We all ordered shrimps and lobster, the specialty of the house. I was the only one who ordered a salad on the side with some raw onion because I happen to like salads not so much because I questioned the restaurant or its food.  Our host, a Ghanaian did not approve of my addition to this dish, since he felt you should not mix the taste of the fresh seafood with anything else.
The next day all four of my colleagues, including our Ghanaian host were not feeling well and had to run to the bathroom a few times for a couple of days. I was very happy to have ordered my salad on the side and remembered the advise of my Indian friend.
Since then I have made it a habit to order some raw onion every time I doubt the quality of the food.
If you think about it, the Dutch dip their raw herring in chopped raw onion. If you order a steak tartare the cook will propose raw onion as one of the spices to mix the meat with.
I don’t have the scientific proof to back my story but in all the years of my travels all over the world I have hardly ever had food problems and I am grateful for the advice of my Indian friend.

Back at Handhi’s one evening we had ordered more food than we could finish and before we left one of the guests asked the waiter to wrap the food.  I was a bit surprised since all of us were very satisfied and unable to finish but I was soon to learn another lesson of the African way of live.
We walked out of the restaurant and the guest who was carrying the bags with wrapped food saw a poor person walking by.
Without even thinking twice he gave some of the bags to this person.  Before we reached the car he had distributed the remaining bags to a few other poor people that we came across.

Have you ever considered asking to wrap the food to give it to a total stranger in the street on your way home?
I admit I had never done so before but I suggest you try this and I am sure you will enjoy the  experience…

© Desi Lopez Fafié

16
Jun
09

Money Talks In Africa Like Anywhere Else!

The views expressed on this blog are my own and do not necessarily reflect the views of Oracle.

handshake

If you consider doing business in Africa you have to ask yourselves the question:

Do we really want to do business in Africa?

If the answer is yes, you should approach the opportunity just like you would approach any investment decision anywhere else on the planet and prepare yourselves accordingly.
A cost-benefit analysis can give you a go or no-go, based on what you feel is an acceptable level of return on the investment you are willing to make, considering possible alternatives.

Recent studies have identified that some projects in Africa yield up to four times the returns these projects would yield in Europe and twice as much as they would yield in Asia.
exploring oil fields

When the opportunity is there and the understood risk is high, the measures that should be put in place to manage the associated risk, should be properly defined.
The initial cost of identifying exploitable oil fields are significant but the returns of the production side of the business are hugh as well, if the studies turn out correct.
Needless to say what the impact can be of mistakes….

woman analyzing

Some companies make half-hearted decisions when it comes to running their operations in Africa and may end up getting disappointed after a while because they are caught by surprise on various fronts from productivity and efficiencies to facing infrastructural issues nobody had even thought of as potential challenges.

A recent CNBC broadcast titled “Dollars and Danger” had the intention to portray Africa as the final investment frontier.
The first 3 minutes of the program give an example of a Chinese project in Libya where China is accused to export their labor problems to Africa running more Africans into unemployment.
I think it is well understood by now that the US and China are both competing for African energy resources and one can read this between the lines here again.

Not to mention that the US is slowly losing its first trading position with Africa and of course this is not something that the US is happy with.

Most people in the US still believe that the investment and official donor assistance their country provide to Africa are among the highest in the world.  Facts have proven the contrary.

The next 4 minutes discuss the risks and dangers of doing business in Africa, where one could end up believing that you cannot walk the streets of Africa without at least one bodyguard because of the way that one conflict zone, limited to a small region of one country, is blown up to a level as if this is the standard across the continent. The reality is that the number of wars and conflicts at this point in African history are lower than ever before and lower than in Asia for instance.

I am not sure how many potential investors made it all the way to the end of the program. If there still were people watching I wonder how many of those ended up seriously considering Africa as an investment opportunity.

It is sad that this has become the standard of portraying a continent that has never been given a fair chance for as long as the developed world has been interacting with it.

I will share some of the considerations I made, with you,  when I started to work in Africa that have helped me  to exceed my expectations.

Africa is big

The first thing one need to realize is that Africa is a continent that consists of 54 countries and I am showing you a picture that will help you understand the size of the continent to put things in perspective.

You can read more on this topic in my post of https://dfafie.wordpress.com/2008/11/30/balance-the-view-and-opinion-on-africa/
Arabic, English, French, Portuguese and Spanish are the imported languages depending on what part of Africa you are at, apart from the thousands of local languages that are spoken by the African people.

Unless the nature of your business is linked to available natural resources, you need to decide on a location or multiple ones where you want to operate from.

Here you will have to strike a balance between business opportunities and cost of operation given that the level of available infrastructure differ from one country to another.

nairobi airport

If the nature of your business requires mobility for instance you have a limited number of airports that will allow you to reasonably connect across a region. You may not have the business volume in the country from where you operate but you have the convenience of a workable infrastructure. The safest bet therefore in this case, is to consider offices to play a regional function rather than a local one, right from the start. You can read more on this topic in my earlier post: Africa is big and flights are short in supply at  https://dfafie.wordpress.com/2008/12/19/africa-is-big-and-flights-are-in-short-supply/

students

Companies that require skilled labor will have to make a decision to bring in the skills from overseas or to invest in local staff or a combination of these. When skills are a determining factor you also need to consider where you want to train your staff, on-site or overseas.
If you have to sent staff overseas for training you may face challenges obtaining visas for your staff based on where staff originate from unfortunately.  This is one of the so many imposed barriers to Africa’s development by the developed world, but one that should not be underestimated. Sometimes visa requests are rejected without even a plausible reason.
A more local consideration is that it can be more difficult in some African countries to obtain work- and residency permits for neighboring nationals because the hosting country wants to protect employment for their local citizens.

See my post on visa related issues at  https://dfafie.wordpress.com/2009/05/

African partners

Some companies work with or via local partners. My recommendation is to look for business partners on equal footing so that the partners can organize themselves similar to meet each other’s expectations in terms of investments, organizational structures and quantitative and qualitative standards.
If you are new to a region, working with a local partner can help you to get the local know how faster incorporated into your company.

The good news for Africa is that more nations have started to invest in Africa. While historically the Europeans were the main overseas players, today US, Chinese and Middle Eastern companies are present and compete for the business opportunities.

I see different approaches to doing business from some of the companies depending on where they originate from.
Knowledge transfer is a common practice for US based companies for instance, where the Chinese companies bring in most, if not all the work force from China thus providing less long-term benefits to the local population.

Not all companies will work with local staff at all levels of the organization and some even have different levels of employee standards for staff that come from overseas versus local staff.
This creates all sorts of human resource problems in the long run. This is not a specific problem in doing business in Africa.
There are plenty examples of companies applying duality everywhere in the world.
The average age of Africa’s population ranks very young and with proper training, skills can be developed. While doing business, we have a great opportunity to invest in Africa’s future at the same time. If there is one way we can make a difference in assisting the development process from within the private sector, it definitely is in the area of capacity building.

The size of a company will determine to some extend the possible investments that can be made. It is the initial cost of exploration that will represent more of a challenge to smaller companies than it will to larger ones. Given the many additional factors companies have to consider when doing business in Africa, it is a conditio sine qua non to have a chance for success. If your company does not have the means to do proper due diligence, you may be better off exploring easier terrain.

There are some conditions that we have to accept for the time being since in most cases companies can do little or nothing about these.
Some countries still have state owned utility companies that hold a monopoly position providing poor service while overcharging the consumer, to mention just one.

Similarly there are government owned cooperations for some of the natural resource related economic activities, that impose price and conditions to the producers. Cotton and cacao are good examples where the farmers work very much under cooperation’s set rules. Since these cooperations are most of the time the only one in its kind in the country, providing fertilizers, pesticides and some other basics to the farmers who have no access to capital,  it is difficult to change the conditions for some of these primary producers. Even with micro financing support, the farmers would still be stuck with price cartels once they want to sell their crop.

It is difficult to break this model as long as these monopolies exist.
If you are part of such a chain the basic conditions will be very much set for you when you approach your suppliers.

If you work regionally and you have to transport goods by trucks, crossing borders requires a skill all by itself, to ensure that your cargo does not lose time dealing with the formalities.
Specially perishable goods require close attention and working with solid partners will proof useful in most cases.

The public opinion on Africa is based on what the media cares to show and more often than not this is a very negative single sided reflection of the reality.
When there is a conflict in one part of one country the news headlines will state that there is a problem in Africa and thus the issue gets amplified by a factor of 54!

body guard

In all the years that I have lived and worked in Africa I have always applied a simple rule. If you are in Rome do as the Romans do!  So if you are in an unfamiliar place, you should pay attention to good advice from your local staff or local partner and you should not go experiment on your own. I have never used bodyguards nor any security personnel and I have worked in over 34 countries in Africa for years and I am enjoying my work and my life. I have come to terms  with the fact that sometimes there are power cuts, water cuts and other inconveniences but the flip side is that if you do, you can enjoy a very hospitable environment where nobody ever complains even if they have all the reason to do so at times.

man in rain

If you are in London, people will complain about the rain or the sun. It is either too wet or too hot but it is never going to be fine..

man smiling

You run into any person anywhere in the streets of Africa and you ask them how they are and they will tell you , I am fine and will do so with a sincere smile.

Of course there are issues. It would be naive to think that there wouldn’t be any issues across 54 countries. More so if we realize that there are so many issues with the rest of the world.
Somehow we have become myopic and we only manage to see what does not work in Africa, while we are stuck up to our eyebrows with issues in the developed world.
Did Africa create the economic crisis most of the western countries are currently struggling with just to pick on a recent one ? When these problems, that the western world created itself,  happen,  overnight billions of dollars can be found to fix the problems and everybody turns back to autopilot.

Those of us who are successfully working in Africa often ask ourselves the question how come “those back home” fail to see what it is that we see…

I have come to the conclusion that often the problems come from a pre-conditioned mindset that forgot to do due diligence before taking up the new challenge, irrespective of the location of the activity.

For you to proof me wrong!

© Desi Lopez Fafié


21
Apr
09

Question for Presidents Obama, Hu Jintao and or Pratibha Patil ?

539w

The challenge:

In order to make Africa the best place to be, we still have some homework to do and therefore I am hoping soon to see your questions for those leaders of nations that will impact the African economies probably most, appear on this blog or you can join my discussion board on facebook under the same title, Africa the place to be.

Here is a statement that may be provocative but hopefully will stir up some discussion:

The Global economic crisis according to some, is the result of the imbalance between Capital and Labor, or if you wish company profit ratios and employee wages. Companies have over-invested and wage increases have not followed accordingly and therefore demand fell short on the supply. Governments wanted to portray economic growth at all cost and found Housing as a target to fill the gap of demand, accepting unsustainable debt levels. The US and the UK copied the mistakes that Japan made earlier and after more than two decades is still trying to recover from.Once the housing bubble burst, we found ourselves where we are today.

Now some also say that Companies have been given too much freedom to outsource labor to low cost countries like China and India as part of free trade and globalization without any oversight. Free trade is seen as part of the problem since the lost purchasing power in the developed world is not compensated by the gained purchasing power in the developing countries where companies have outsourced to.

Early in the crisis President Obama’s administration made some maybe premature statements about “Buy USA made products” and the media picked this up as a possible new wave of protectionism. If the developed countries were to embrace protectionism I am concerned that this will worsen the chances for the developing countries on top of all the other effects that this part of the world will have to deal with as a result of economic imbalance between the haves and the have-not. Global warming effects will hit Africa probably more than any other region while those who contribute to the global warming are outside Africa to mention just another challenge we put on the overloaded shoulders of Africans.

Over 1.7 million Australian jobs  are directly or indirectly connected to exports according to the  Asia Pacific Economic Cooperation (APEC)

fta_factsheet_web_map21

The picture illustrates Australia’s top 10 agriculture export destinations.

In Africa on average Agriculture contributes to more than 85 % of the economic output but exports are still marginal compared to the big players.

How many millions of people in Africa would be able to make a living if their agricultural products could reach overseas markets ? What effect would this additional supply have on the current food prices that clearly indicate the shortage in supply with a world population that is still growing too fast.  So finding additional supply resources in agriculture should not be considered a threat to any current suppliers who cannot cope with the demand anyways.

I still am convinced that free trade and free market access is the only incentive to create a higher value chain otherwise Africa will remain condemned to export raw materials and will never be able to develop industries and services.  Cacao Farmers in Ghana pay 8% duties exporting raw cacao beans, and would have to pay 38% duties if exporting cacao powder. Not a great incentive considering cost of freight and all other competitive disadvantages that the farmers in Ghana have to face ?

fta1

Today US labor is outsourced to China, after finding an even cheaper labor force then in India. As you can see from the illustration of the US Department of Labor, free trade agreements are in place with labor provisions but the current picture does not yet include such provisions with China nor with India.

The African leaders who today have found China as a willing investor,  in my view, should also insist in agreements that provide for a fair deal. South Africa has seen a surge in unemployment as a result of cheap Chinese products being dumped on their markets. Dealing with the World Bank and IMF has never been easy for African leaders. The offers coming from China may be very tempting but like always one should be on alert if cheap and easy money is offered as to what the conditions are and how this will ultimately affect people.

Hopefully we will have pictures where the leaders of the developed world will shake hands with the leaders of Africa, like in the above case between the US and Korean presidents at the G20 in April,  to try and reach free trade agreements with proper labor provisions providing a fair deal for every world citizen.

So who wants to give his or her thoughts on how to handle this issue and what would be the best  question to Mr. Obama, Hu Jintao or Prahib Patil ?

Feel free to comment this blog or to participate in the discussing board on facebook at:

http://www.facebook.com/topic.php?topic=7963&post=30586&uid=87956082428#/topic.php?uid=87956082428&topic=7963

© Desi Lopez Fafié


17
Apr
09

The Next International Trade Event in Africa will take place in…

africa

Over the years I have been dealing with event organizers in Africa, I have often requested events to take place outside the typical locations like
South Africa, Kenya or Nigeria. As such there is nothing wrong with these locations but if we don’t give a chance for events to take place
in the rest of the 51 countries some of the good intentions will become difficult to achieve when trying to promote regional integration to name but just one.

Regional and intraregional trade is high on the agenda of most African countries. Potential investors need to get a chance to explore all options not just a handful.
As the attached graph shows the share of regional trade is still a very small part of the total trade volumes although slightly growing.

061030_chart2

What I have witnessed, during events in Lagos, Johannesburg, Sun City or Cape Town, is that participation from the French speaking countries is very
limited in a best case scenario. To make things worse, if there are a few participants very often the organizers fail to provide simultaneous translation
assuming everybody speaks English. Of course any next invitation to attend will become a harder sell. When you speak to the organizers they will tell you
that the participation rate is “surprisingly” low from French speaking countries and therefore it does not justify the investment while one of
the agenda items clearly states “regional integration”.

I have taken the example of events taking place in English speaking countries posing a risk to lose out on French speaking participants but of course the issue goes both ways.

To be fair to the organizers there are some challenges that have to be considered when organizing events:

waiting

Flight connections between African countries, specially between French and English speaking ones, are often routed via a limited number of airports and can make the journey long and unpleasant.
Daily flights are not always available and a stopover sometimes means being stuck a full day because the connecting flight is only available the next day.

Finishing meetings in Gaborone some time back on a Friday afternoon, I was stuck in Johannesburg on Saturday because my next flight back to Accra was on Sunday.
So one may lose a lot of time in some cases or one should consider a costly trip to Europe to connect via Paris or London to fly back south while the passenger is only trying to fly to a destination that should take him/her 3 to 4 hours had there been a direct connection.

Either way the organizers understand this and fear that by choosing an “odd” location the participation rate will be low.

pasted-graphic-15

Potential sponsors to the event will also raise questions when an event is taking place in an “odd” country and may not provide sponsorship as much as they would if the event would take place in the more usual countries.
What sponsors should take into consideration though, is the fact that sponsorship is still a form of investment, and investing in existing markets yield different returns than investing in new and often unexplored markets with low or non existing competition. The investment therefore may yield much higher returns.
If one considers the cost to explore a new market on ones own, both in time and in money, to reach potential business partners I am convinced that it pays off to sponsor the “odd” countries from time to time.

If potential foreign investors are part of the targeted participants, the organizers again are faced with another challenge:  the perception of the lesser known countries, or worse the biased opinion on some of these countries. Organizers of course try to attract as many participants as possible so the logic is easy to follow when a choice is made for the more typical countries.

visas

Visas are another challenge that organizers face. Most of us who have worked in Africa know that the problem is not limited to Africans trying to fly to Europe or the US to attend events, but the problem also exists for Africans trying to visit another African country.

Some countries do have a serious accommodation challenge as is the case at this point in Angola. To get a hotel room requires in the worse case some months of upfront reservation. This sounds positive to me.
It means that the demand to partner with Angola exceeds the current available supply to host potential foreign investors but of course for the time being it poses logistical hindrance for organizers.
There are however many countries in Africa, outside the aforementioned ones, that can cater for events with auditoria that have simultaneous translation capabilities.

Most of these challenges are not limited of course to event organizers. They affect any company that wishes to expand their activities in the region.

My recommendation to the organizers would be, to discuss their logistical challenges with for instance the chambers of commerce, of countries they would like to consider outside the typical ones and seek ways to overcome some of these and to prepare the events in such a way that participants feel welcome regardless what language they speak.

If events get big enough maybe airlines are willing to provide charter planes to handle the peak passenger demand. If trade starts to increase significantly airlines may also consider to provide a more permanent connection between two trading countries. For the time being there is no direct flight between Ouagadougou and Lagos for passengers. Cargo flights are available however between the two cities. Once enough volumes of cargo moves between these two cities, it follows that at some point passenger flights will start to take off as well.

gb

Globalization does not stop in the US, Europe, Asia or Japan. Years ago, if a Chinese passenger boarded a flight to Bamako, the cabin staff would double check to make sure the passenger was boarding the correct flight.
Today its often difficult to get a seat on a flight because of the increased demand coming from Asia on some of the routes into Africa. Increasing amount of Africans travel via Dubai to Beijing or Shanghai as well.
Dubai has understood this opportunity and has become a major connecting hub between Africa and Asia

china_africa-trade_2006 _44229699_africa_china_invest_map416

Emirates Airlines are expanding their routes across the continent providing daily flights to a growing number of locations after starting their first flights to Cairo in 1986. Their planned flights to Angola, will become their 17th African destination.
Emirates Airlines have grown their African business by 17% recently and provide 4000 Africans with employment. Compare this for instance to South African Airlines who have 24 destinations within Africa after starting in 1934 and you realize the significance of the investment as well as the success Emirate Airlines are enjoying out of Africa and the benefit Africans enjoy from increased employment and from getting connected.

efa

In addressing the sponsors, organizers should expect some initial resistance but if enough success stories are shared about the returns the events have generated for their participants I am confident that this issue is just a matter of time.
Organizers very often have a better overview of companies willing to invest and can play a significant role as an intermediary to bridge demand and supply.
To date many local countries statistical data is inaccurate or at times conflicting if you compare the data of for instance two trading countries.
Potential investors and sponsors get confused as a result and the biased opinion will be reinforced in the worse case.
Target the low hanging fruits, the market makers as your first choice of sponsors.  They realize the benefit of exploring the markets before anybody else has arrived. The laggards will follow in due course and will  face stiff competition like the always do no matter where in the world from those who decided to go first.  The telecom operators are a good example who are fighting to get into the most remote countries because of the growth their businesses are enjoying.

aw3 aluminibanner

content-blog-111808-01-ghana

Here lies in my opinion also a wonderful opportunity for the organizers to become more vocal about the success stories of some of the countries as a result of their events. The more these event related successes are shared, the more participants the organizers should expect going forward, the more investors will consider the new country as a serious place for business. In the end everybody wins.

publicrelations

Some organizers get it right already, like eLearning Africa, http://www.elearning-africa.com which started in Ethiopia than moved to kenya and this year plan their event in Senegal.
Another good example is Africa.com http://africa.comworldseries.com which runs events in Senegal, Nigeria, Kenya and Tunisia, aiming to get their content to more than just Cape Town.
Business Excellence Global Media has taken the step of running their next event in Uganda instead of Johannesburg tapping into the East African market. http://www.be-excellent.com/dynamic.php?button=99&section=22

Please have a look as well at the following site for some more ideas for your next events http://www.africa-ata.org/cities.htm

So will the next World Economic Forum on Africa move again between Cape Town and Durban, or will the organizers be bold enough to try out a different location in Africa ?

© Desi Lopez Fafié


14
Jan
09

Crossing Boarders

burkina_24
As a member I was informed about a Roundtable Meeting held on November  2008 at The Corporate Council on Africa in Washington.  Representatives from USAID came to CCA to discuss The President’s Global Food Security Response, a $130 million increase in development assistance to increase agricultural productivity of staple foods, stimulate the supply response and expand trade of staple foods.
The presentation went over  facts as they are understood today.
Now facts are facts and to see poverty come down from 60% to 54% in 14 years is a fact, not one to be proud of I would say.
The development process takes too long. In part to quote Jeffrey Sachs “because too many institutions are providing small parts of development assistance and as a result the assistance is too fragmented.
In part because the one size fits all approach that has been a practice for many years clearly does not bring the efficiencies that could be achieved if a more case by case approach would be implemented”.
With the economic crisis I am concerned that Africa may suffer from more delays to get out of the poverty trap because other priorities will prevail.
What strikes me here is another fact:
Initially 700 Billion dollars could be found in a week and it took another week to agree on the first set of terms and conditions to repair an industry sector that had gotten out of control while we need a few decades to resolve a problem that affects almost 1 billion people in Africa. A problem that deals with the most burning issues threatening human beings in all their outlook of life.
To quote Bono “Where we live in this world should not determine whether we live in this world”. The devastating impact of Malaria Tuberculosis and Aids can be addressed if only we want to.
Botswana is already starting to get hit by the crisis due to a drop of commodity prices according to a recent article I read.
This on top of the human hemorrhage that is taking place in the country as a result of AIDS leaving it without a labor force needed to fuel a sustainable economy.
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The presentation addressed Regional trade which is a logical and reasonable proposition but why will this work in Africa if the EU has made insignificant progress to deal with their Agricultural issues for as long as they exist and EU Agriculture has been the biggest tax payers money waister to keep inefficient French and Italian farmers alive at the expense of inflated consumer prices due to imposed subsidies.
As long as a Ghanaian farmer pays 8% duties exporting raw cacao and 38% on cacao powder to protect inefficient production capacity in the west, the incentive for the farmer in Ghana is lacking let alone to try and share the market with his Ivorian neighbor… So without fair market access I see no significant change that will arise from regional trade while we maintain trade barriers.
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Food shortage is a threat with the current world population projections where we are almost doubling the numbers in 15 years. So knowledge transfer to improve agricultural output is a priority in my opinion to avoid more hunger and famine. The presentation acknowledged this and that was a very positive point.
In today’s information age solutions are within reach if only we want to share our knowledge.
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One slide  said that we have to recognize Agricultural related issues are a complex problem. I could not agree more to that. But it should say that we have largely imposed our problem on the farmers in Africa due to protectionism in the rest of the world.
Climate impact is another concern, and some of the biggest contributors to the global warming are outside Africa and Africa will again be one of the most hit victims.
According to the presentation only 3.1 M hectares are irrigated out of the 74 M agricultural land in Nigeria. I guess soon the cost to irrigate will increase since water will come in less abundance to the region. Ghana is suffering as we know from short rainfalls and Lake Volta was drying up, causing severe energy problems to the region as a result.
I drove from Ouagadougou to Bamako recently and back. It took me about 45 minutes to get through the border and this should be considered a record time. I made 6 stops in total each way between customs, passport control, laissez passer for the car etc. Trucks take hours to cross the border.
The procedures at the Ghanaian border are even worse because at times the language barrier kicks in.  Between Ghana and Togo the situation is not  any better.
Borders close at 22.00 hours between Mali and Burkina Faso. If you want to get to the border from Mali back to Burkina after 1800 hours you have to be in a convoy of 6 cars or accept two police officers to escort you to the border the last 90 km. They say it is for your safety.
You have to pay the officers for them to assist you.
How does this compare to cost of interstate transport in the US or EU. All of this op top of the fact that both Mali and Burkina Faso are landlocked countries that already suffer from excessive costs of transport in the first place.
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On a positive note the roads are getting much better but there are still long stretches to be fixed with dangerous potholes.
How many people in Washington or Brussels realize what the transport corridors look like between Burkina and Mali ?
A major opportunity to use Information Technology to speed up the border formalities I would say.
I am not negative towards all the good efforts of the likes of USAID. All these efforts are most welcome. That said, Jeffrey Sachs estimates that the AID industry consumes about 8B US $ out of the ODA sums that are allocated to Africa just to keep itself operational. This amount is significant if you consider the debt service and other components that are coming out of ODA as well, leaving real cash to a stripped down number insufficient to deal with the burning issues nations are facing. As long as we have talk shows going on until pigs fly and the G8 continue to provide lip service I am not so sure that the MDG’s will ever be met, forget about 2015.
Why did I have to sign a petition sent to Prime Minister Gordon Brown asking him to ensure at least the presence of ONE African leader at the discussions concerning the economic crisis in the world.
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So when are we going to have a slide that says
“The complex problem constitutes of the following”, and lets state the dry facts as they really are and put a solution to it.
If we want, any problem no matter how complex can be solved. If we really want that is…
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© Desi Lopez Fafié




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