The 3rd edition of the The Carnival of African Enterprising has launched at the White African blog. As with the previous installments, this edition highlights some of the best posts from the African business/entrepreneurship blogosphere. Head over to White African to check out top posts from 5 of Africa’s top blogging/business talent, with a bonus addition from Annansi Chronicles (Big Thanks to Hash).To find out more about the ongoing carnival go here. Special thanks to Benin Mwangi for organizing everything.
African countries on 2007 list of 50 most desirable outsourcing destinations
BusinessWeek’s recent article on rising outsourcing destinations highlights what many African entrepreneurs have proposed for years. Outsourcing to parts of Africa can be a win-win situation. The BusineesWeek article refers to consultancy A.T. Kearney’s 2007 list of the 50 most desirable outsourcing destinations worldwide. For the list countries were ranked by a) financial attractiveness, based on such measures as compensation and infrastructure costs; b) a so-called people score, measuring a nation’s people skills, availability of language and educational skills, and the size and quality of the IT industry; and c) their economic/political environment, infrastructure quality, cultural exposure, and IP security. While India remains the top outsourcing destination many African countries are learning from their example. (Note: Scores are in parentheses.)
Rank – Country (overall – financial – people – environment)
#13 – Egypt (5.6 – 3.2 – 1.1 – 1.3)
#25 – Mauritius (5.4 – 2.8 – 1.0 – 1.6)
#26 – Tunisia (5.4 – 3.0 – 0.9 – 1.5)
#27 – Ghana (5.5 – 3.3 – 0.9 – 1.3)
#31 – South Africa (5.3 – 2.5 – 1.2 – 1.6)
#36 – Morocco (5.1 – 2.9 – 0.9 – 1.3)
#39 – Senegal (5.1 – 3.2 – 0.8 – 1.1)
Other factors which add to a countries’ attractiveness are language and education skills and the reliability of a nation’s telecommunications infrastructure. But the the key underlying factor for many African countries’ successful bid for new business is the lack of infrastructure. While the African digerati are continuously ramping up their skills and making themselves available for business they continuously run into infrastructural limitations. But who is to blame? Is it the governments who are overrun with bureaucracy? or the people themselves, who often do not hold their leaders accountable?
Offshoring upstarts are making so many inroads, in fact, that by 2012, they’ll significantly dilute India’s dominance, says consultancy Gartner (IT). The consulting firm says that by 2010 about 30% of Fortune 500 enterprises will outsource to three or more countries, from less than 10% today. “So many governments have realized what an opportunity this is and there’s a lot of effort being spent in promoting their countries to the market,” says Johan Gott, manager of A.T. Kearney’s Global Services Location Index.
…Kenya, for instance, is trying to become a destination for business process and IT outsourcing. The Kenyan government has worked in recent years to liberalize its telecom sector, which has lured more operators and helped drive telecom services prices down by 70% in a short time, according to the World Bank. Yet the country relies on satellite connections to link to the rest of the world. That makes it costly for outsourcers to do business.
Video: Ozwald Boateng Fashion Show at African Union Summit, Ghana
The Paris Hilton effect on Africa’s development
We live in a celebrity-powered society. I don’t like it, but it’s the truth. Whoever said everyone will get their 15 minutes of fame, was way off. It seems like the expiration date on fame is being extended longer and longer. Fame in itself is not a bad thing, however, the individualism, it comes with in today’s society is another story. With all the reality show mania and with reputable organizations paying talentless people like Paris Hilton ridiculous amounts of money for an appearance, the American culture of celebrity and individualism is playing an even bigger role in how and where money is spent in business. But if this the nature of the world we live in, where do Africans, and our culture of community and modesty, fit in?
Certainly all African’s are not so modest. However, our definition of celebrity and entitlement is definitely different from the West. Many would argue that the American definition of celebrity is based on fantasy while the African definition is based on reality. Where western celebrities are celebrated apart from the community, African celebrities are celebrated for their effect within the community. Is either definition right or wrong? Who knows, but when one dominates the other in global influence, a problem arises.
What does this have to do with business, money and Africa’s opportunities? Everything, I would say. One of the biggest problems Africans have with getting their stories told particularly in the media is that we still do not really understand how western media works. Take the picture of Paris Hilton to the left. Paris Hilton who represents, the epitome of America’s celebrity culture – and hence influence – holds a Vanity Fair Africa issue with Oprah – another more talented and influential American celebrity – on the cover. While the whole scene was definitely staged by Paris’ pr reps, it’s a classic example of the role celebrity plays in American culture. Follow me for a moment. Bono campaigns for more money to go to African aid. He recruits Oprah Winfrey, among others, to draw attention to the cause. Bono then sells the the idea to the Vanity Fair editors who stand to have multiple celebrities in one issue (celebrity faces sell glossies, especially fashion ones) and the issue is produced. Paris Hilton, then picks up the issue in her attempt to clean up her post-jail image, and in turn further sells Bono’s Africa campaign to insecure suburban teen-aged girls everywhere. Suburban American families, (with disposable income) then put money into Bono’s Africa campaign. This is the power of celebrity in American economics. While we Africans argue merit and talent, Bono continues to play the celebrity game to influence the flow of money. Many of us argue there should have been more Africans on Vanity Fair’s covers, but while Wole Soyinka is a talented man with accolades to boot, he has no influence over the people spending the money, and so he is regulated to a group feature towards the end of the magazine.
Further evidence of the power of celebrity, can be seen in the media coverage of the recent TEDGlobal conference in Tanzania. In her excellent piece about the event, Jennifer Brea, writes about the circumstances surrounding Bono’s heckling of Andrew Mwenda. The fact that Bono can have so much power as to bump George Ayittey‘s presentation of his perspective, heckle another presenter AND practically be the only one of 50 or so presenters over the 4 day African conference covered widely in the press illustrates the power of celebrity. The same issue about the difference between western and African celebrity was raised on the Africa media blog, with a reader asking
“Given the advances in technology that now allow citizens of any country to directly access the popular culture of another country (e.g. music, films, art), why do people living in the global north continue to receive more information about situations in Africa from the few Western celebrities “caring about Africa” than from the many African ones trying to push the same message? (Why do people seem to be more influenced by their similiarity with the source than the source’s actual level of expertise/connection with the cause?)”.
To this Melissa Wall of the Africa Media blog answered, “The West or North dominates global media structures and flow (much research has documented this). More specifically, reporters often have to go with the easiest-to-access sources. A Western celebrity with an entourage of handlers and PR flaks is a lot of easier to get a juicy quote from. Enlarging the Rolex is difficult.”. It all boils down to familiarity, which translates to celebrity which in-turn motivates spending. So if we Africans want access to the money which brings the opportunities we need, we have to do a better job of understanding the power of celebrity from the western perspective. As important as talent is – and it IS important – celebrity trumps talent. Sad but true.
Urban explosion and African youth’s global influence
On Wednesday the United Nations Population Fund released an insightful report – State of World Population 2007: Unleashing the Potential of Urban Growth – detailing it’s research on the future of global urbanization. Declaring that “urbanization is unavoidable”, the most interesting predictions were that by 2030 the populations in African and Asian cities will have doubled. The populations of those cities will be greater than the number of people living in China and the United States combined.
While the world’s urban population grew very rapidly (from 220 million to 2.8 billion) over the 20th century, the next few decades will see an unprecedented scale of urban growth in the developing world. This will be particularly notable in Africa and Asia where the urban population will double between 2000 and 2030: That is, the accumulated urban growth of these two regions during the whole span of history will be duplicated in a single generation. By 2030, the towns and cities of the developing world will make up 80 percent of urban humanity.
The report details that the growth will take place primarily in small cities and towns raising a concern about whether developing nations, particularly in Africa, have the infrastructure to manage this growth. We all know that many African cities, such as Dakar, are already becoming hubs of activity, but the predicted urban explosion will bring a new generation of citizens who would have been raised within the digital age. Will African enterprise adapt to the change in time?
Without a doubt global youth culture is already influencing big business. But will the explosion of Africa’s cities coincide with it’s youth’s contribution to global culture? And how will African government react to the sudden change?
In a few days African leaders will convene in Ghana to discuss forming a United States of Africa (USA???!!!). We can only hope that they take the UN report with them and realize that cities are market makers and the infrastructure that support urban areas play a large part in how successful a region is. About cities and economics Wendy Waters explains, “It comes down to how easy it is for people and companies to flow into (and out of, ironically enough) the region.” The UN report says “… no country in the industrial age has ever achieved significant economic growth without urbanization. Cities concentrate poverty, but they also represent the best hope of escaping it.” and Head Heeb adds, “African cities in the next decades will have to be everyone’s commitment.” I will predict that the trend of African youth’s influence on global business and media will explode alongside the growth of cities, with or without government’s support.
Your thoughts?
Who’s doing business in Africa?, Trade Forum Magazine update
Not long ago I highlighted a feature in Trade Forum magazine called “Changing Brand Africa”. It turns out they’ve updated their site with a new section called “Who’s Doing Business in Africa?”. The new section complements the previous feature with six new stories:
- Creating an African Business Superpower
- Rwandan Coffee Goes from Ordinary to Star(bucks)
- CSR(Corporate social responsibility): A Must for Big Firms in Africa
- New Markets for an Ancient Heritage
- CyberTrackers of the Kalahari
- Tunisia’s Boom in ICT (Information and Communications Technology)
In all, the six sections give a well rounded view of the various opportunities to do business on the continent. A good read.
The articles below are a collection of inspirational models that reflect the new “Brand Africa.” It is the second in the series of stories about Changing “Brand Africa” to be featured on the Trade Forum site.
From an African media mogul in South Africa, we go to the founder of a home furnishings firm in Ethiopia. A coffee supplier outlines Rwanda’s rapid improvement as a coffee producer, and a Tunisian businessman shows how his country is embracing information and communications technology with a passion. We also look at trends in corporate social responsibility, a “must†for businesses, as practiced at Shell, and at how modern technology used by bushmen opens new job opportunities. – Trade Forum Magazine
Hip-hop’s African ancestry at Odyssey Awards
Last Saturday I attended the 5th Annual Hip-Hop Odyssey (H2O) Awards, held at BB Kings in New York City. Organized by the Hip-Hop Association, the awards ceremony recognized today’s hottest Hip-Hop filmmakers, industry professionals and pioneers. The event always features appearances and performances by Hip-Hop heavyweights. This year’s event, as usual, was packed with many of the individuals who have played a major part in shaping the hip-hop landscape including, artist/entrepreneur/hip-hop personality Fab 5 Freddy (that’s him in the picture standing in front of me as we listen to DJ Beverly Bond speak about YO! MTV Raps’ late producer Ted Demme), Ice-T (who gave an excellent acceptance speech about staying true to oneself), Dana Dane, Grand Wizard Theodore, (Dr.) Roxanne Shante, Ralph McDaniels (Video Music Box), The Cold Crush Brothers, Chubb Rock and much more.
One thing I’ve always enjoyed about the awards and the preceding H2O International Film Festival, is how the organizers (Martha Diaz, Rolando Brown etc) make a conscious effort to show the influence of African (and international) cultures on the growth of America’s hip-hop/urban culture. A few years back, besides the performance by the Nomadic Wax Global Hip-hop All-stars’ Chosan (Sierra Leone) , Eli Efi (Brazil) , and El Gambina (Korea), the festival grand prize went to Hip-Hop Colony, a film about the African hip-hop explosion – now on DVD. This year Hip-Hop Colony’s Kenyan director, Michael Wanguhu, was on hand to present an award. To further encourage the hip-hop generation to connect with Africa, this year’s awards was sponsored by and involved a presentation by popular DNA lineage identification company African Ancestry Inc. Some of you might remember that African Ancestry Inc. was the company behind VH1’s Spike Lee-directed February (Black History month) spot which promoted a stronger connection between African-Americans and the African continent through DNA swab testing. African Ancestry’s President, Gina Paige, was on hand at this year’s H2O Awards ceremony to present the evening’s host, Paul Mooney, with his personal DNA test results. Upon revealing that Paul Mooney’s lineage goes back to Guinea-Bissau (I don’t remember which specific ethnic group was cited), Gina Paige presented Mr. Mooney with a folder containing the details of the tests as well as a t-shirt with a Guinea-Bissau logo. A very nice touch.
African Ancestry offers a great solution for African-Americans looking to re-connect with their African heritage. With the DNA procedure gaining popularity and support from African-American celebrities like Oprah, Whoopi Goldberg, LeVar Burton, Chris Tucker, Chris Rock, and Isaiah Washington – who also holds a seat on African Ancestry’s Board of Directors -, and media outlets from ABC’s Good Morning America to PBS championing the efforts, African Ancestry has already begun to solidify the link between African-American and African cultures.
What’s your Africa strategy?
Many 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?
Live modeling Adidas’ Materials of the World
Renowned fashion photographer Nick Knight is at it again with another fashion/art/multimedia project. His seminal SHOWstudio site – through which I had the honor of participating on the iD Magazine/London Fashion Week “Bring and Buy” project some years ago – now features a commercial project that “rethinks traditional advertising using motion image”. The project features 10 models from a range of mixed ethnic backgrounds -five male and five female- filmed wearing pieces from adidas’s new ‘Materials of the World’ line, “a collection influenced by the indigenous fabrics of different world cultures”. If you’d like to see the latest release of the Adidas Materials of the World Africa jackets in action on live models head over to the SHOWstudio Skin project site.
Skin is an undertaking by the company &Son, the creative consultancy run by stylists Simon Foxton and Nick Griffiths; a commercial project that rethinks traditional advertising using motion image. Ten models from a range of mixed ethnic backgrounds -five male and five female- are filmed wearing pieces from adidas’s new ‘Materials of the World’ line, a collection influenced by the indigenous fabrics of different world cultures. Over a period of ten days beginning on May 10, the living portraits will be also be displayed in the windows of a Curtain Road shop front in London’s Shoreditch where the attention of passers by will be tested to register that it is film and not stills that they are seeing. In this sense, Skin is a subtle development out of Simon Foxton’s previous Sittings: Thirty Men project of 2005 and a handsome addition to SHOWstudio’s ongoing study of living fashion portraiture.
Africa’s next chapter convenes at TEDGlobal 2007
One of the most important events for Africa’s technology, entertainment, and design industry development, TEDGlobal 2007, is in full swing in Arusha, Tanzania. Coming from vacation I have been reinvigorated by all the developments coming out of this seminal event. Now in it’s 3rd day, the conference has already given me more than enough insight into innovative ideas behind Africa’s next chapter. With all the information and idea sharing at this event, the African blogosphere is sure to be fueled for a long time to come. Below are some important resources for keeping up to date with the happenings in Tanzania. I’ll be watching and listening closely as I hope you all are.
Live updates:
Soyapi Mumba is Twittering TEDGlobal
Ethan Zuckerman of My Heart’s in Accra is live-blogging
Other bloggers at TEDGlobal 2007:
TEDFellow Erik Hersman, of White African
TEDFellow Rafiq Phillips at WebAddiCT
DNA
David McQueen
Africa Beat, by Jennifer Brea
Bankalele
Mental Acrobatics
AfroMusing
TEDFellow Mweshi
TEDFellow Fran Osseo-Asare, of Betumi: The African Food Network
TEDFellow Soyapi Mumba
TEDFellow Ramon Thomas, of NETucation
Ndesanjo Macha, who writes Digital Africa, in English, and Jikomboe, in Swahili
Fifthculture
Ellen Horne at Radio Lab in Tanzania
ClassV
Sam Ritchie
Harinjaka (in French)
Kenyan Pundit, by TED Conference speaker and blogger Ory Okolloh
Timbuktu Chronicles, by TEDGlobal conference director Emeka Okafor
and of course you can get official updates at the TED blog site