Is Africa's version of capitalism failing? That is the question many African's in and outside of the business world continue to ask as many countries on the continent continue to move rather slowly to compete with other economies. While individual countries can be championed for their business successes, many argue that the continent as a whole must be aligned in order to see real change. A new book called Architects of Poverty by Moeletsi Mbeki attempts to explain much of the reasons for Africa's struggle to embrace modern capitalism. Moeletsi Mbeki is joined by a panel of experts including author Aly Khan Satchu in a discussion of the topic in this CNBC video. Do you think African capitalism is failing? Comments?
President Obama on Africa and upcoming visit (video)
This week President Obama will make his first visit to sub-Saharan Africa as president of the United States. The visit is greatly anticipated by Africa as a whole and Ghana specifically. In the videos below he talks to allafrica.com about Africa now and to the future.
Part 1
Part 2
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Corporate America’s Changing Views on Africa
Baird, the management consulting firm, recently asked senior officers of 30 American Fortune 100 corporations about their current attitudes on investing in Africa. While some of the results showed that not much had changed, the study also revealed that corporate America was increasingly optimistic about Africa’s role in their future business strategies. Three of the key points of the study, “Inside the Boardroom: How Corporate America Really Views Africa” are:
• USA Inc. is more interested in Africa than before, because the African market appears increasingly attractive, but Africa has tough competition and high hurdles for US investment. Education is at the top of the US corporate wish list for Africa; “educate your people so that we can employ them”
• The African countries that hold most interest are South Africa and some countries in the North, like Egypt; there are also some pockets of interest in West Africa, most notably Ghana, Nigeria and to some extent Angola; while some in the South (Botswana and Mozambique) and East (Uganda and Kenya), are also being watched
•To make itself more attractive for US investment, Africa should:
- Invest in education , health and infrastructure
- Ensure the rule of law and a business-friendly climate for all investing companies
- Show it is serious about attracting foreign investment
- Market itself as aggressively as other regions of the world
- Demonstrate opportunity cost of not investing
A recent CNBC broadcast from Lagos, Nigeria (video below) also expounded on what Africa has to offer corporate America.
1st India-Africa Summit held
While everyone was following the Olympic torch global tour and the protests at the various legs of the tour, a very important summit was held in New Delhi India. April 8-9 saw the debut of the 1st India-Africa Summit, where heads of state from 14 African countries including South Africa, Algeria, Uganda, Kenya, Egypt, Ghana and Tanzania met with the Indian government to discuss future relationships. While some people have said that India’s decision to hold the conference was inspired by the 2006 China-Africa Summit, none can deny the power of such summits in powering Africa’s development. While many people are using the Olympic games to draw attention to China’s human rights history – China is Sudan’s largest trading partner and is seen as a supporter of the turmoil in Darfur – , the issue of Asia’s influence in Africa will increasingly make mainstream news. With the India-Africa summit and China and South Africa celebrating a 10 year anniversary of diplomatic ties, we are sure to see a rapid impact of Asia in Africa.
(India’s Prime Minister Manmohan Singh) said India would more than double its lines of credit to African countries and regional economic groups to $5.4 billion, up from $2.15 billion in the last five years. Two-way trade between India and the African continent totals about $30 billion a year, having grown sixfold in the last five years, according to Indian Junior Minister for External Affairs Anand Sharma. In comparison, trade between China and Africa surged from $55 billion in 2006 to $73.3 billion last year, according to China’s official Xinhua News Agency. Premier Wen Jiabao said in 2006 that China should strive to bring the trade volume to $100 billion by 2010. ….In the last few years China and India have both bolstered their presence in oil-rich African nations. Last year companies from both countries won in a round of bids for exploration licenses in Nigeria, Africa’s leading oil exporter.
– Time
A retirement plan for African leaders, Mo Ibrahim
African leaders, Ibrahim (says), look to retirement as they would to the edge of a cliff, beyond which lies a dizzying fall towards retribution and relative poverty.
“We don’t have financial institutions for ex-presidents to go and run, or boards of great companies. There is life after office in other parts of the world. I just read that Tony Blair was paid half a million pounds to make a speech in China. People like Blair always have a place in society, they have secure financial futures,†– Lunch with the FT: Mo Ibrahim
Sotheby’s, Bansky bring Bono green for Valentine’s
Despite increasing criticism Bono’s marketing behemoth Product (RED) keeps on course, this time with a Sotheby’s run valentine’s day auction titled (AUCTION) RED. The art auction, held February 14th at the Gagosian Gallery, included limited edition art by the contemporary art world’s heavy hitters such as Takashi Murakami, Bansky, Damien Hirst, and Jasper Johns. The auction closed at a total of $42.58 million, an amount which even eclipsed Sotheby’s pre-sale estimate of $21 million – $29 million. A fan of contemporary art myself, some of the pieces sold are truly beautiful and I’m envious of the winning bidders.
In kicking off the Valentine’s Day sale, to which over 60 top contemporary artists donated museum-quality work, Bono led the crowd in a sing-along of the Beatles’ “All You Need Is Love.” – Forbes.com
I continue to be amazed at the RED campaign’s ability to continuously be “successful” at tapping into the guilt of celebrities and normal citizens alike. It’s too bad that such a brilliant marketing vehicle doesn’t think it could be effective without consistently playing the victim/savior game. Check out some of the artwork and related video below.
Gallery footage
Damien Hirst speaking to Charlie Rose about the auction
Bono fanfare at the Valentine’s auction
BET’s Bob Johnson adds to the African luxury hotel surge
In the past few years there’s been a bit of news coming out of new hotel projects taking place on the African continent. From the Hilton Hotels Group to the Rezidor Hotel Group it seems there’s a lot of interest in Africa as a luxury travel destination. Some will say that the shift is part of the overall change in the world’s political climate, where stories of terrorist attacks come out of former tourist “safe havens”. Whether that is the case or if it’s a result of the increased marketing and advertising efforts by African countries such as Tanzania, the fact is that developers are looking to Africa as a premiere destination for luxury travel. But it’s not just the large developers who are jumping onto the trend. Recently Charlotte Bobcats owner and BET founder Robert L. (Bob) Johnson along with a delegation of African American businesspeople announced an agreement with the government of Liberia to build a villa-style, four-star hotel in Monrovia. The project falls under Bob Johnson’s Maryland-based firm RLJ Companies, which with some 135 hotels valued at more than $3 billion, is the largest Black-owned hotel investment company in the United States. The Liberian hotel project is the result of a “commitment” made by Bob Johnson, Debra Lee, Chairman and CEO of BET, and actors Chris Tucker, Cicely Tyson, and actor Jeffrey Wright among others to Liberian President Ellen Johnson Sirleaf at the 2006 Clinton Global Initiative Annual meeting. In addition to the hotel, which is scheduled to break ground in March 2008 and open in February 2009, Bob Johnson also donated $3 million to open a new fund which will “provide Liberian entrepreneurs and businesses with the financial and technical resources they need to rejuvenate the country’s economy and foster long-term stability in the wake of two decades of civil strife”.
What makes this story interesting, besides the kind of project the group chose to launch, is also the fact that – as I’ve reported numerous times on this site – African Americans are increasingly putting their money where their mouth is when it comes to Africa’s business development. And with Liberia being a country which was established as a place to send freed African-American slaves, what better place for a serious businessman like Bob Johnson to invest in. Black Enterprise Magazine quotes Andy Ingraham, President and CEO of the National Association of Black Hotel Owners, Operators & Developers saying, “It’s important to note that this is part of an overall philanthropic effort by Robert Johnson, and you will see more African Americans not only doing increased business with the Caribbean and Africa, but also entering into philanthropic ventures….African American investors have been in talks with developing countries in Africa such as South Africa and Ghana, to build hotels.”. This is certainly a story to watch.
(photo: RLJ Cos.)
Africa 2.0 panel at SXSW Interactive 2008
A few months ago I asked for votes for a panel idea I had proposed for the upcoming South by SouthWest (SXSW) Interactive Festival. Well I’m happy to announce that with the support of many bloggers and readers, the Africa 2.0 panel has been chosen as part of the schedule for the upcoming SXSW Festival. Taking place on March 9, 2008, the Africa 2.0 panel will bring together a group of African professionals who are all using technology in innovative ways. The panelists for what might be the only Africa-focused panel during the festival will be:
• Erik Hersman (WhiteAfrican.com, AfriGadget.com)
• Uduak Oduok (Ladybrille.com)
• Nii Simmonds (Nubian Cheetah)
• Chosan (Silverstreetz Entertainment)
As the moderator, I will be leading a discussion on how technology is being used to affect change in Africa. The panelists will be discussing how technology factors into efforts in different industries including fashion, entertainment, finance, and marketing. For a perfect example of how technology can affect change in Africa, visit Ushahidi, a collaborative effort by African bloggers to report on the election-provoked crisis currently taking place in Kenya.
Quote: Taking African products where there’s no bias
While more established economies begin to focus on the revenue potential of emerging economies, many of those emerging economies are also seeing the benefits of selling to each other. Speaking about selling African products in foreign markets, the Ugandan Coffee Development Authority (UCDA) managing director, Mr. Henry Ngabirano, explains
Though our coffee is world class, we find problems marketing it in the more developed countries because they perceive all products from the third world as inferior … It’s only natural that Uganda focuses on markets in the Arab world, North Africa and Far East where consumers don’t have this bias.