Two weeks ago, I attended the us-Africa business conference in Washington dc. In attendance were some of America's Fortune 500 companies already doing business in the continent or looking into it, a great representation of Africa's leading companies, an amalgamation of accomplished American and African business owners and professionals who have interests and also government agencies and officials from the US and various African countries.
Here is what I took from the conference
1) The next untapped market is Africa - There was a general sense that with some African countries' GDPs beginning to grow at the same rate as China and India, Africa's economies are now viable truly emerging markets. Couple that with the rising cost of doing business in China and India and Africa's educated English and French speaking countries, the continent quickly begins to look very attractive to investors. The continent has also come online and in the last 5 years has installed massive fiber cable lines into different parts of the countries to increase services and improved road / rail infrastructure to move goods.
2) Trade not aid or remittances - First point is that even though I applaud the millions who provide aid both in terms of money, effort and time, in 2011 what Africa needs is far less aid and far more trade. Lifting Africa out of chronic poverty will mainly happen because profit driven entrepreneurs make products and services not because governments or organizations gave or received aid.
Second point is that even though African families must be grateful to those in the diaspora who support their African families by sending them money, this too is emblematic of the problem. According to the World Bank, $1.9 Billion in remittances found its way to Kenya alone last year. I suspect that’s an undercount since that’s what can be tracked electronically through banks and wiring services. However, very little of that was used for production and growth.
For Africans in the diaspora this is a huge catch 22. We all want the countries we originate from to do well but most of us know that aid and remittances won't get these countries there. But if you have family and they depend on you for basic necessities including food and healthcare, you are compelled to provide support and there's just no two ways about it.
What I saw during the conference were creative products and services including health insurance and co-operative products that could help get Africans out of the cycle. Just five years ago these were unheard of and hopefully the thrive going forward. Ultimately, we've got figure out how to offer products and services so that both the country of your residence and country of birth can truly benefit.
That's the goal of the visionary life i.e. always looking for a win-win solution. Those who are able to figure that out become the driving force of getting Africa out of its dependency on aid.
3) Leveraging networks is a must - In speaking to the Kenyans in the diaspora, the head of Kenya's Vision 2030, Mugo Kibati pointed out that as much as Kenya appreciates the aid/remittances going into Kenya and Africa in general, "What is really needed most are your networks". Those of us who live outside Africa after all have the networks to make things happen to increase the level of trade. Even I am guilty of this. With all the colleagues and friends I've been fortunate to know and do business with, I am simply not doing enough to show that Africa is a credible and profitable market to consider. We must realize it's a win-win in that those who start engaging Africa now will be the early birds that catch the worm while Africa benefits from the increased trade.
4) Get involved in constitutional reform - Most African countries are going through or about to go through a constitutional reform process. It's important for all of us who care about Africa and especially if you leave in a country that has a matured constitutional process to be involved both in voicing your opinion and participating. Who better to be involved in the reforms other than those who have experienced and seen it work.
5) Governments realizing and refocusing: At the conferences there were various government representatives showcasing their countries plans to make them more business conducive. Kenya, for example held its first US/Kenya embassy conference geared to improving business relations between the two countries and also provided a progress report of its 25 year growth plan.
With most of us at the conference tired of talk, it was a relief to see precise actionable steps that Kenya has taken to become an attractive place to do business.
6) Education, it was a matter of time: - In one of the presentations in response to an analysis of Census Bureau data by The Journal of Blacks in Higher Education, “African immigrants to the United States are more likely to be college educated than any other immigrant group. African immigrants to the U.S. are also more highly educated than any other native-born ethnic group including white Americans.
Want to know my thoughts? Education is a tool and is nothing to proud of if we can’t use what we’ve learnt to elevate the standards of living for the world’s poor wherever they may reside. Education is ultimately a responsibility much more than it is an achievement.
Bernard Wambugu
CEO Lantel Systems
Let’s stay in touch
