More on trade/business and aid in Africa’s development

The past few weeks have seen an increase in the trade (or business) vs. aid in Africa discussion. Framed by Andrew Mwenda’s presentation at the TEDGlobal conference in Tanzania, and Bono’s subsequent rebuttal, the issue of what path should lead African development is certainly a hot topic. Here are a few articles which add to the ongoing discussion:

Please Bono, Stop Heckling and Just Listen (Financial Times)

Pro-aid campaigners argue that providing aid to accountable governments is a means of stimulating their economies. This is nonsense. Giving aid to poor countries and working exclusively through their government agencies makes accountability worse rather than better. It makes the governments more accountable to foreign donors than to their own people.
Africa’s only viable and sustainable strategy for economic growth is one based on trade and not aid. For this to happen, African countries need to aggressively support their private sectors to create environments for enterprise, wealth creation and elimination of poverty.

Investors In Africa Seeking Undervalued Names, Diversification (CNN Money)

“We’re convinced that the perceived risk in Africa is greater than the actual risk for disciplined and focused investment,” – Thomas Gibian, chief executive of Emerging Capital Partners, (which manages more than $1 billion in five private-equity funds focused on African companies)

“If you read the newspaper, you’re very worried because a lot of news is bad news,. If you take a step back and you take a look at the patterns that are in place in the world, you’ll see that there’s a long-term movement of the world toward democracy and peaceful settlement of disputes.” – Lawrence Speidell, co-manager of the Frontier Market Select Fund, L.P

Africa market size hinder private equity (The Namibian)

“…funds into Africa would have jumped in 2007, but private equity players’ enthusiasm was dampened by worries about the size of markets and companies, illiquidity and regulations in certain countries that slow down the process of buying out local firms” – Martin Kingston, Executive Deputy Chairman of Rothschild & Sons, South Africa


(RED) Vanity Fair charity album by Youssou N’Dour

(RED) Vanity Fair Youssou N'Dour charity albumThe recent issue of Vanity Fair, the “Africa issue”, has spawned a charity album featuring some great West African musicians. Based on Youssou N’Dour’s personal playlist, the “Tracks in the Sand” compilation album is available for sale on iTunes and includes a digital booklet with liner notes by Mark Hudson, author of The Music In My Head.

Tracklist:

  1. “Li Ma Weesu,” by Youssou N’Dour.
  2. “Senegal Fast Food,” by Amadou & Mariam.
  3. “Savane,” by Ali Farka Touré.
  4. “Jiin Ma Jiin Ma,” by Orchestra Baobab.
  5. “Africa Challenge,” by Toumani Diabate’s Symmetric Orchestra.
  6. “Saa Magni,” by Oumou Sangare.
  7. “Chet Boghassa,” by Tinariwen.
  8. “M’bifo,” by Rokia Traoré.
  9. “Sou,” by Cheikh Lô.
  10. “Iniagige,” by Salif Keita.
  11. “Miyaabele,” by Baaba Maal.
  12. “Jaman Moro,” by Afel Bocoum.
  13. “Sigui,” by Djelimady Tounkara.
  14. “Debe,” by Ali Farka Touré and Toumani Diabate.
  15. “Allah,” by Youssou N’Dour.

Top African-American talent plan trip to African Union Summit, Ghana

African Union Summit Hollywood Group

On Friday, June 15th, some of Hollywood’s most influential African-American talent got together at the Four Seasons in Beverly Hills, California for a panel discussion on promoting African-American interest in Africa. The meeting also served to organize a trip to attend the 9th Annual African Union Summit in Ghana next week. The gathering was organized by designer Ozwald Boateng, and included Jamie Foxx, Chris Tucker, Mos Def, Herbie Hancock, James Mathis, and Isaiah Washington – whose Gondobay Manga Foundation was started after he discovered that he is genetically linked to Sierra Leone’s Mende people. During the African Union Summit, held in Ghana from 25 June – 3 July 2007, 50 influential African-Americans will meet with the 53 attending African presidents to discuss the continent’s future. The African Union Summit’s ultimate goal is of full political and economic integration leading to the United States of Africa. It’s good to see African-Americans playing an active part in planning Africa’s future.

What’s your Africa strategy?

China AfricaMany of us can agree that today, Africa plays a major role in the development of the global economy. The magazine covers and celebrity reports are a small part of how Africa has become a major player. A large part of my consulting work has to do with helping organizations develop an Africa-related strategy which both addresses the customer’s demands AND provides opportunities for Africans. Whether yours is a foreign or Africa-based company, today you MUST have a strategy which communicates your companies position on the Africa-related issues emerging daily. Any company or organization that has not begun to understand the role Africa’s development is playing in their market stands to become obsolete. In today’s world, NOT having the right Africa-related strategy is a sure sign of an organization’s ineffectiveness both domestically and globally.

Some organizations will simply implement a clichéd aid campaign as a response, but the smart ones will see the bigger picture and realize that Africa’s development is tied to their own long term goals and the goals of their customer. You can promote “Save Darfur” t-shirts but if the shirt is made in China, your company can quickly lose years of credibility with the customer.

It’s probably most important for Africa-based companies to develop an Africa-related strategy. With all the attention that various parts of the continent is getting, they too must adjust to the new found attention to remain relevant. In essence the world’s issues are playing out in their backyard. There are detailed reports of the Chinese push into the continent, and as Tom Barnett says, the Americans are landing. These and other foreign strategies will severely affect how Africans do business. It is important for Africa-based companies to re-think their production and competition strategies. While the age-old image of the starving African has long hindered the growth of many African industries, there are new opportunities which, if approached properly, could easily allow an Africa-based company to become a major player in the global market.

It’s times like this that are important to organizational growth. As a CEO, you can either stick your head in the sand and hope that the change is temporary, or adjust your organizational strategy to take advantage of the opportunities which are already affecting your customers. So what’s your Africa strategy?

The rise of Kenya’s equity generation

Binyavanga WainainaIf you haven’t already picked up Vanity Fair’s Africa issue, make sure you do so. To my and others’ surprise, the issue covers pretty well rounded views on Africa despite the magazine’s commercialism. Included in the issue is a story about Kenya’s “equity generation”. Written by Kenyan author/journalist Binyavanga Wainaina – who is also profiled in another Vanity Fair feature on Africa’s literati – the article focuses on young people who have survived the hard last years of President Daniel arap Moi’s Kenya that ended in 2002 and are now driving Kenya’s economy. The Wall Street Journal’s Informed Reader summarizes Mr. Wainaina’s article further, and points to a complementing Economist magazine article on the subject.

“Where the country has done well, it is often despite rather than because of the government. When Kenyans have been able to do things off their own bat, they have invariably done better than when they have been locked into state-controlled schemes.” — Robin Moroney (The Economist)

“How to write about Africa” by Binyavanga Wainaina

The classic 2005 article by Binyavanga Wainaina. It’s even more relevant now. (via Xeni)

How to write about Africa
by Binyavanga Wainaina
some tips: sunsets and starvation are good (from Granta 92: The View from Africa)

Always use the word ‘Africa’ or ‘Darkness or ‘Safari’ in your title. Subtitles ma include the words ‘Zanzibar’, ‘Masai’ ‘Zulu’, ‘Zambezi’, ‘Congo’, ‘Nile’, ‘Big’ ‘Sky’, ‘Shadow’, ‘Drum’, ‘Sun’ or ‘Bygone’. Als useful are words such as ‘Guerrillas’, ‘Timeless’ ‘Primordial’ and ‘Tribal’. Note that ‘People’ means Africans who are no black, while ‘The People’ means black Africans

Never have a picture of a well-adjusted African on the cover of your book, or in it, unless that African has won the Nobel Prize. An AK-47, prominent ribs, naked breasts: use these. If you must include an African, make sure you get one in Masai or Zulu or Dogon dress.

In your text, treat Africa as if it were one country. It is hot and dusty with rolling grasslands and huge herds of animals and tall, thin people who are starving. Or it is hot and steamy with very short people who eat primates. Don’t get bogged down with precise descriptions. Africa is big: fifty-four countries, 900 million people who are too busy starving and dying and warring and emigrating to read your book. The continent is full of deserts, jungles, highlands, savannahs and many other things, but your reader doesn’t care about all that, so keep your descriptions romantic and evocative and unparticular.

Make sure you show how Africans have music and rhythm deep in their souls, and eat things no other humans eat. Do not mention rice and beef and wheat; monkey-brain is an African’s cuisine of choice, along with goat, snake, worms and grubs and all manner of game meat. Make sure you show that you are able to eat such food without flinching, and describe how you learn to enjoy it—because you care.

Taboo subjects: ordinary domestic scenes, love between Africans (unless a death is involved), references to African writers or intellectuals, mention of school-going children who are not suffering from yaws or Ebola fever or female genital mutilation.

Throughout the book, adopt a sotto voice, in conspiracy with the reader, and a sad I-expected-so-much tone. Establish early on that your liberalism is impeccable, and mention near the beginning how much you love Africa, how you fell in love with the place and can’t live without her. Africa is the only continent you can love—take advantage of this. If you are a man, thrust yourself into her warm virgin forests. If you are a woman, treat Africa as a man who wears a bush jacket and disappears off into the sunset. Africa is to be pitied, worshipped or dominated. Whichever angle you take, be sure to leave the strong impression that without your intervention and your important book, Africa is doomed.

Your African characters may include naked warriors, loyal servants, diviners and seers, ancient wise men living in hermitic splendour. Or corrupt politicians, inept polygamous travel-guides, and prostitutes you have slept with. The Loyal Servant always behaves like a seven-year-old and needs a firm hand; he is scared of snakes, good with children, and always involving you in his complex domestic dramas. The Ancient Wise Man always comes from a noble tribe (not the money-grubbing tribes like the Gikuyu, the Igbo or the Shona). He has rheumy eyes and is close to the Earth. The Modern African is a fat man who steals and works in the visa office, refusing to give work permits to qualified Westerners who really care about Africa. He is an enemy of development, always using his government job to make it difficult for pragmatic and good-hearted expats to set up NGOs or Legal Conservation Areas. Or he is an Oxford-educated intellectual turned serial-killing politician in a Savile Row suit. He is a cannibal who likes Cristal champagne, and his mother is a rich witch-doctor who really runs the country.

Among your characters you must always include The Starving African, who wanders the refugee camp nearly naked, and waits for the benevolence of the West. Her children have flies on their eyelids and pot bellies, and her breasts are flat and empty. She must look utterly helpless. She can have no past, no history; such diversions ruin the dramatic moment. Moans are good. She must never say anything about herself in the dialogue except to speak of her (unspeakable) suffering. Also be sure to include a warm and motherly woman who has a rolling laugh and who is concerned for your well-being. Just call her Mama. Her children are all delinquent. These characters should buzz around your main hero, making him look good. Your hero can teach them, bathe them, feed them; he carries lots of babies and has seen Death. Your hero is you (if reportage), or a beautiful, tragic international celebrity/aristocrat who now cares for animals (if fiction).

Bad Western characters may include children of Tory cabinet ministers, Afrikaners, employees of the World Bank. When talking about exploitation by foreigners mention the Chinese and Indian traders. Blame the West for Africa’s situation. But do not be too specific.

Broad brushstrokes throughout are good. Avoid having the African characters laugh, or struggle to educate their kids, or just make do in mundane circumstances. Have them illuminate something about Europe or America in Africa. African characters should be colourful, exotic, larger than life—but empty inside, with no dialogue, no conflicts or resolutions in their stories, no depth or quirks to confuse the cause.

Describe, in detail, naked breasts (young, old, conservative, recently raped, big, small) or mutilated genitals, or enhanced genitals. Or any kind of genitals. And dead bodies. Or, better, naked dead bodies. And especially rotting naked dead bodies. Remember, any work you submit in which people look filthy and miserable will be referred to as the ‘real Africa’, and you want that on your dust jacket. Do not feel queasy about this: you are trying to help them to get aid from the West. The biggest taboo in writing about Africa is to describe or show dead or suffering white people.

Animals, on the other hand, must be treated as well rounded, complex characters. They speak (or grunt while tossing their manes proudly) and have names, ambitions and desires. They also have family values: see how lions teach their children? Elephants are caring, and are good feminists or dignified patriarchs. So are gorillas. Never, ever say anything negative about an elephant or a gorilla. Elephants may attack people’s property, destroy their crops, and even kill them. Always take the side of the elephant. Big cats have public-school accents. Hyenas are fair game and have vaguely Middle Eastern accents. Any short Africans who live in the jungle or desert may be portrayed with good humour (unless they are in conflict with an elephant or chimpanzee or gorilla, in which case they are pure evil).

After celebrity activists and aid workers, conservationists are Africa’s most important people. Do not offend them. You need them to invite you to their 30,000-acre game ranch or ‘conservation area’, and this is the only way you will get to interview the celebrity activist. Often a book cover with a heroic-looking conservationist on it works magic for sales. Anybody white, tanned and wearing khaki who once had a pet antelope or a farm is a conservationist, one who is preserving Africa’s rich heritage. When interviewing him or her, do not ask how much funding they have; do not ask how much money they make off their game. Never ask how much they pay their employees.

Readers will be put off if you don’t mention the light in Africa. And sunsets, the African sunset is a must. It is always big and red. There is always a big sky. Wide empty spaces and game are critical—Africa is the Land of Wide Empty Spaces. When writing about the plight of flora and fauna, make sure you mention that Africa is overpopulated. When your main character is in a desert or jungle living with indigenous peoples (anybody short) it is okay to mention that Africa has been severely depopulated by Aids and War (use caps).

You’ll also need a nightclub called Tropicana, where mercenaries, evil nouveau riche Africans and prostitutes and guerrillas and expats hang out.

Always end your book with Nelson Mandela saying something about rainbows or renaissances. Because you care.

Economist Jeff Sachs and Africa’s other epidemic: Malaria

Millennium PromiseCan a Vision Save All of Africa?
By Joe Nocera (Talking Business, NYTimes, June 16, 2007)

It was “Malaria in Africa Week” here in New York. Not officially, of course. But by coincidence, two big malaria-related events took place that were by turns moving, inspiring and invigorating.

To attend one or both was to come away thinking that maybe the business community was finally getting serious about eradicating malaria, which kills more than a million people a year, most of them African children under the age of 5. But when you look more closely at the problem, you’re left wondering whether such a goal can ever be attained. At least, that’s what I was left wondering.

On Monday, two related organizations, Millennium Promise, co-founded in 2005 by the well-known Columbia economist Jeffrey Sachs, and Malaria No More, a spinoff started last December, held their first fund-raising dinner. Roger Waters of Pink Floyd fame spoke and sang, as did John Legend. Peter A. Chernin, the president of the News Corporation and a co-founder of Malaria No More, received a standing ovation for his malaria work. Daniel Vasella, the chief executive of Novartis, received an award; last year, Novartis lost $50 million selling, below cost, tens of millions of doses of its highly effective malaria drug to the developing world. Mr. Sachs gave a rousing, almost euphoric speech, insisting that the end of poverty and disease in Africa was within our grasp. The dinner raised an astonishing $2.7 million.

Then, on Wednesday, another nonprofit, the Global Business Coalition on H.I.V./AIDS, Tuberculosis and Malaria, held its big fund-raising dinner. This is a group that exists solely to marshal corporate support for work in controlling and reducing the three diseases. Speakers included the actor Jamie Foxx, the former United Nations ambassador Richard C. Holbrooke, and Richard Branson, the chief executive of the Virgin Group. The keynote address was delivered by Bill Clinton, who dazzled the gathering with his message of hope. The coalition raised over $2 million that night.

In the space of two days, around $5 million was raised to combat disease in Africa. Much of that money was earmarked for malaria.

In the West, and especially in corporate America, malaria has become the disease du jour. I don’t mean that cynically; it’s just a fact. Because malaria has largely been eradicated in the developed world, we in the West have ignored the fact that it has continued to ravage Africa, particularly its children. But then the Bill and Melinda Gates Foundation began to focus on it, and the United Nations made it one of the lynchpins in its calls to end third world poverty. Last year, the White House held a malaria summit meeting. Exxon Mobil, Pepsi, Chevron, JPMorgan, KPMG and many others, including most of the big pharmaceutical companies, are engaged in the fight against malaria in Africa. The current issue of Vanity Fair, “guest edited” by Bono, is devoted to Africa and has plenty of references to malaria. Included is a lengthy profile of the passionate, charismatic 52-year-old Mr. Sachs. “Messianic,” the article called him.

More than anything else — more even than the path-breaking work of the Gates Foundation — it has been Mr. Sachs’s ability to sell his vision that has caused wealthy philanthropists and large corporations to get behind the causes of eradicating malaria and ending poverty in Africa. He’s the reason George Soros gave $50 million to Millennium Promise, and why the organization has been able to raise over $100 million in its short life.

But that same vision, which is inexorably linked to malaria, but is much larger than that, has caused some mainstream economists to say that while Mr. Sachs means well, he is peddling a dream that will always be just that: a dream. “I think he is improving the lives of many people,” said Tyler Cowen, an economics professor at George Mason University (and a contributor to The New York Times). “But what he is doing is much oversold.” Mr. Cowen does not believe that Mr. Sachs’s work in Africa will endure.

The question that confronts us this morning is, Who is going to turn out to be right?

Jeff Sachs has zero patience for his critics. He makes it clear in interviews that he feels he knows better than any armchair economist what will work in Africa because “I’m out here doing things in the trenches, with a long track record.”

“I’ve seen a lot of things on the ground that have changed my view both of how to do economics and what the important issues are,” he told me. “I realized early on that I couldn’t understand the problems I was interested in without engagement, because the world is more complicated than a theoretical model.”

Mr. Sachs has always believed in engaging with the world. As a young economist, he advised the governments of Bolivia, which was struggling with hyperinflation, and Poland, which was trying to transform itself into a market economy, advocating a harsh form of economic medicine that was called shock therapy. By the time he was 35, Mr. Sachs was probably the most famous economist in the world.

After a troubled stint working with the government of Russia, Mr. Sachs moved on to the United Nations, where he advised Kofi Annan on the problems of third world poverty. He orchestrated a huge report on poverty, which led to something called the Millennium Development Goals. And then, having helped formulate the goals, he decided to try to make them a reality. Thus was born Millennium Promise.

Although Mr. Sachs insists that he has always been consistent in his approach — “I try to design strategies appropriate to the circumstances,” he said — most other people think his Africa strategy is radically different from anything he’s done before. Mainly, he says he believes that the West needs to spend huge sums of money to control disease, improve farming, create better schools and build infrastructure in Africa. And if that can be done, he believes, economic growth, and all the good things that flow from it, will become Africa’s lot at last.

Though he is a prodigious fund-raiser, even Jeffrey Sachs can’t wave his magic wand and gather the hundreds of billions of dollars it would take to build all the roads and schools and farms and hospitals that Africa so desperately needs. So what he has done instead is to pick poor rural villages — he’s up to 79 by now — in countries with relatively stable governments, and find corporations, foundations and wealthy individuals who will adopt them to the tune of $300,000 a year for five years.

There is no question that the efforts of Millennium Promise are making a difference in those villages. The schools are drastically better, and thanks to a new lunch program, with the grain provided by the village’s own farmers, students are eating better. Each village is given bed nets coated with insecticide, which are the best way to prevent malaria, and a Novartis medicine, Coartem, which has to be taken within a day or so of malarial symptoms. Cases of malaria have dropped significantly. Mr. Sachs’s agronomists at the Earth Institute, which he runs at Columbia, create seed that can adapt to the village’s usually arid soil, and they give all the farmers fertilizer. Sure enough, the crop yield has increased, in many cases, by four to five times.

That is what Mr. Cowen means when he says that Mr. Sachs is improving people’s lives. Plainly, he is. But those efforts, laudable though they are, will not eradicate malaria or reduce African poverty in any serious way. The real question is how to turn Mr. Sachs’s efforts into more than just a pilot program that temporarily helps a bunch of villages. How will it transform all of Africa?

Ultimately, Millennium Promise is hoping that the governments of these countries will pick up where the Fortune 500 companies leave off. But given Africa’s history, that is one serious leap of faith. “He doesn’t have a coherent theory by which his model can scale up,” Mr. Cowen told me.

Take malaria again. There are several reasons companies are drawn to it. One is that a multinational oil giant like Exxon Mobil has employees in Africa, and it is in its best interest to keep them from getting sick. But another is that, on the surface, malaria really does seem solvable, and companies like to fix things. If everyone in Africa had — and used — a bed net, the incidence of new malaria cases would drop to nearly nothing overnight. And if Coartem were more widely available, far fewer malaria victims would die.

But it’s just not that simple because malaria is so intertwined with other problems Africa faces. What happens when the bed nets tear? How do you get more of them into remote villages? What do you do as the mosquitoes become more resistant to the insecticide? What happens to the clinics — and the Coartem — when the Western money goes away? How do you make malaria programs work in the middle of civil wars and strife? And most of all, how do you extend this program all across the continent? Despite the best of intentions, neither Western corporations, nor wealthy philanthropists, are equipped to solve all these problems. “Countries make their own fate,” said Bruce Greenwald, Mr. Sachs’s economics colleague on the Columbia faculty.

When you think about it like that, it seems nearly hopeless. When I spoke to Dr. Vasella at Novartis, whose company has just agreed to sponsor a village in Tanzania, he acknowledged that Mr. Sachs’s program might not work. But, he said: “That is still no reason not to try. If you don’t try you won’t know the outcome.” He added, “Unless you are willing to fail, you shouldn’t start.”

And maybe that’s the best way to think about what Mr. Sachs — and Western companies — are trying to do. Theirs is not a solution but an experiment. It will surely do some good, but it is impossible to know how much. It is a worthy effort, but probably not as profoundly transformative as he likes to portray it. And it is probably best not to get too excited, no matter how inspiring the speeches at New York fund-raisers.

Because someday malaria is no longer going to be the pet cause in American boardrooms. And then what?

Does Africa need technology or aid?

African girl with cell phoneAfter his return from TEDGlobal 2007 in Tanzania, the NY Times’ Jason Pontin writes his analysis of the ongoing debate on what the most important element of Africa’s future success is.

“I think this choice between aid and entrepreneurship is false. If we wait for trade, it will take generations, and people need help now. On the other hand, only entrepreneurship can make us rich.” – Herman Chinery-Hesse, Softtribe, Ghana

Vanity Fair’s Africa issue debuts

Iman Alicia Keys Vanity FairJune07coverJayZ George Clooney Vanity FairJune07cover

The Bono-edited July 2007 issue of Vanity Fair, dubbed the “Africa issue”, has hit stands. What an issue this is. With 20 covers photographed by Vanity Fair’s go-to photographer, Annie Leibovitz , and insight on Africa from EVERYONE from Jay-Z, Iman, Djimon Hounsou, Desmond Tutu, Chris Rock, Madonna, Barack Obama, and Queen Rania of Jordan among others, this issue is a great effort on the part of Vanity Fair. Get a copy, read the articles, and let me know your views. Props to YG for the heads up and images.

As you read this—historic—issue of Vanity Fair, the Global Fund is benefiting, but that’s not the main reason we kidnapped this publication’s extraordinary photographers and storytellers. We needed help in describing the continent of Africa as an opportunity, as an adventure, not a burden. Our habit—and we have to kick it—is to reduce this mesmerizing, entrepreneurial, dynamic continent of 53 diverse countries to a hopeless deathbed of war, disease, and corruption. Binyavanga Wainaina’s piece on Kenya is an eye- and mind-opener. From here, what’s needed is a leg up, not a handout. Targeted debt cancellation and aid mean 20 million more African kids are in school, 1.3 million Africans are on lifesaving drugs. Amazing. -from Bono’s guest editor’s letter