The Paris Hilton effect on Africa’s development

Paris Hilton Vanity Fair africaWe 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.

African super-rich grow richer, move to Richistan

Porsche in Dakar trafficAs part of my research on the African brand, I interviewed a Nigerian Hollywood public relations professional recently. Though his clientèle doesn’t consist purely of Africans, being a Hollywood connector he frequently encounters Africans with a bit of money looking to use his services for something or another. As we talked, the topic of money came up and the gentleman expounded on the different groups of Africans with money and their attitudes towards wealth. What I found interesting was how the Nigerian connector classified the groups: hustlers, who will do anything for a buck, and dignitaries, whose source of wealth is questionable. In his experience these were the two types of people who make up the affluent African class. Of course I found his tales of the affluent African a little disheartening, but it brought to light the issue of options for African wealth. We all know that the continent is rich with resources, however the access to those resources and who benefits from it’s potential revenue is another story.

The Wall Street Journal’s Informed Reader points to the recent release of Merrill Lynch and Cap Gemini’s 2007 World Wealth Report which reveals:

Globally, the HNWI (High Net Worth Individuals) population grew by 8.3% in 2006, to a total
of 9.5 million individuals. HNWI population gains were particularly strong last year in Africa, the Middle East and Latin America, advancing by 12.5%, 11.9% and 10.2%, respectively, and outpacing more developed nations. These gains came amid these emerging markets’ attempts to solidify their infrastructures and become more developed economies.

While this means there is more African representation in Robert Frank’s Richistan, many of us in lower to not-even-close Richistan, are beginning to ask even more questions about what role Africans play in the scramble for Africa’s resources. A BIG question raised in the conversation about African billionaires on Forbes’ list was, where are those billionaires getting their money? The wealth report hints that,

China has been an active player in Africa, investing heavily in various sectors and showing particular interest in mining. Taken together, these factors bolstered the continent’s HNWI population, helping it grow by 12.5 percent in 2006 and increasing its wealth by 14 per cent.

While this seems like a good answer, I’m not sure many Africans will buy it. But I don’t want to be labeled a “player hater” so I will point you to this statement by the Informed Reader:

So when it comes to business and markets, the firms that cater to the top of the high end will continue to do the best in the coming years. Think megayachts instead of yachts, beachfront estates instead of McMansions, and Bentleys and Maybachs instead of Mercedes and BMWs.

Paul Redfern adds, “The report says much of the income is spent on luxury items, art collections, jewelery and charitable causes.” Maybe this growing area will give enterprising Africans such as my Hollywood connector friend a green card to Richistan. As another hustler friend of mine said, “Don’t hate, participate” – legitimately of course.

image source

Africa Enterprising articles part 2

The second edition of the Africa Enterprising blog carnival has been published on African Loft. The carnival features some very engaging content from many of the African blogging community The posts touch on topics such as trade vs aid in Africa, entrepreneurship in Africa, business and investment in Africa, and universal business tenets. Head over to Imnakoya’s African Loft for links to an inspiring collection of ideas.

The Conversation gets louder

Age of Conversation
As you all might remember I recently co-authored a dynamic book called The Age of Conversation. Based on the concept of how new communication tools facilitate conversations and shape communities, the book features multiple authors’ insights. I’ve gotten word that the book will be available for purchase a week from today with a special cover design by David Armano. Here are the particulars with more info to come real soon:

Launch date: Monday, July 16th

Formats/Prices:
Hardbacks $29.99
Paperbacks $16.95
E-book $9.99

Background

Authors:
Gavin Heaton, Drew McLellan, CK, Valeria Maltoni, Emily Reed, Katie Chatfield, Greg Verdino, Mack Collier, Lewis Green, Sacrum, Ann Handley, Mike Sansone, Paul McEnany, Roger von Oech, Anna Farmery, David Armano, Bob Glaza, Mark Goren, Matt Dickman, Scott Monty, Richard Huntington, Cam Beck, David Reich, Luc Debaisieux, Sean Howard, Tim Jackson, Patrick Schaber, Roberta Rosenberg, Uwe Hook, Tony D. Clark, Todd Andrlik, Toby Bloomberg, Steve Woodruff, Steve Bannister, Steve Roesler, Stanley Johnson, Spike Jones, Nathan Snell, Simon Payn, Ryan Rasmussen, Ron Shevlin, Roger Anderson, Robert Hruzek, Rishi Desai, Phil Gerbyshak, Peter Corbett, Pete Deutschman, Nick Rice, Nick Wright, Michael Morton, Mark Earls, Mark Blair, Mario Vellandi, Lori Magno, Kristin Gorski, Kris Hoet, G.Kofi Annan, Kimberly Dawn Wells, Karl Long, Julie Fleischer, Jordan Behan, John La Grou, Joe Raasch, Jim Kukral, Jessica Hagy, Janet Green, Jamey Shiels, Dr. Graham Hill, Gia Facchini, Geert Desager, Gaurav Mishra, Gary Schoeniger, Gareth Kay, Faris Yakob, Emily Clasper, Ed Cotton, Dustin Jacobsen, Tom Clifford, David Polinchock, David Koopmans, David Brazeal, David Berkowitz, Carolyn Manning, Craig Wilson, Cord Silverstein, Connie Reece, Colin McKay, Chris Newlan, Chris Corrigan, Cedric Giorgi, Brian Reich, Becky Carroll, Arun Rajagopal, Andy Nulman, Amy Jussel, AJ James, Kim Klaver, Sandy Renshaw, Susan Bird, Ryan Barrett, Troy Worman, S. Neil Vineberg

Urban explosion and African youth’s global influence

Dakar city, SenegalOn Wednesday the United Nations Population Fund released an insightful reportState 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

Mashudu Ramano Johnnic CommunicationsNot 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:

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

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


112 years later, African art (and controversy) at Venice Biennale

Olu Oguibe on cover of Modern Painters Junee 2007 Venice Biennale issueThe June issue of Modern Painters magazine features a cover story on the first African Pavilion to ever open at the 112 year old Venice Biennale. The Biennale, arguably the most prestigious contemporary arts festival in the world, has been around since 1895 with little or no African representation, until now. Curated by Fernando Alvim and Simon Njami (Africa Remix), the Check List Luanda POP show at the Africa Pavilion features 30 artists’ works from the Sindika Dokolo African Collection of Contemporary Art in Luanda, Angola. The exhibition which opened on June 10 was selected by a panel of experts composed of Meskerem Assegued, Ekow Eshun, Lyle Ashton Harris, Kellie Jones, Bisi Silva and chaired by Robert Storr to represent the African continent at the 52nd International Art Exhibition.

Venice Biennale Africa PavilionThe selection of the Sindika Dokolo Foundation‘s collection as a representation for Africa came with a bit of controversy surrounding the business activities of Congolese businessman and art collector Sindika Dokolo’s family and associates. Most notably a July 2006 article in the French-language newspaper La Conscience titled “The Dokolo Affair” which alleged that under the Mobutu Sese Seko regime, Sindika Dokolo’s father, Sanu, created the Bank of Kinshasa, which “channeled money to members of his own family including Sindika himself, bilking the state and normal depositors of more than $80 million dollars when it imploded in 1986”. In a reply to the Artnet Magazine’s story titled “Art and Corruption in Venice”, Dokolo stated that the goal of his art collection is to help Africans build “a strong point of view on the world that would be their own,” Despite the initial controversy, the Check List Luanda POP show has gone on to set a precedent which I hope will continue. Below is a list of the artists featured. Also listen to the “Ghostworld” a mix of music accompanying the show, produced by DJ Spooky.

Check List Luanda Pop – African Pavilion
52nd Venice Biennale International Contemporary Art Exhibition

Curators
Fernando Alvim (Angola)
Simon Njami (Cameroon)

Produced and organized by Foundation Sindika Dokolo

Listen to DJ Spooky’s “Ghostworld”
[audio:http://www.annansiclothing.com/Ghostworld.mp3]

Artists works showing

  • Ghada Amer (Egypt)
  • Oladélé Bamgboyé (Nigeria)
  • Miquel Barcelo (Spain)
  • Jean Michel Basquiat (USA)
  • Mario Benjamin (Haiti)
  • Bili Bidjocka (Cameroon)
  • Zoulikha Bouabdellah (Algeria)
  • Loulou Cherinet (Ethiopia)
  • Marlène Dumas (South Africa)
  • Mounir Fatmi (Marocco)
  • Kendell Geers (South Africa)
  • Ihosvanny (Angola)
  • Alfredo Jaar (Chile)
  • Paulo Kapela (Angola)
  • Amal Kenawy (Egypt)
  • Kiluanji Kia Henda (Angola)
  • Paul D. Miller Aka DJ Spooky (USA)
  • Santu Mofokeng (South Africa)
  • Nastio Mosquito (Angola)
  • Ndilo Mutima (Angola)
  • Ingrid Mwangi (Kenya)
  • Chris Ofili (UK/Nigeria)
  • Olu Oguibe (Nigeria)
  • Tracey Rose (South Africa)
  • Ruth Sacks (South Africa)
  • Yinka Shonibare, MBE, (UK/ Nigeria)
  • Minnette Vári (South Africa)
  • Viteix (Angola)
  • Andy Warhol (USA)
  • Yonamine (Angola)