Social Media vs Social Networking

We all use social media and are part of social networks, “we tweet, we friend and we blog”, but I often ask myself do we really understand the distinction between the two? At first glance they seem to be the same, but after digging deeper I found out that they are as different as chalk and cheese. Understanding the differences makes it easier to decide how they will work better for individuals and businesses.

By Definition

Social media is seen as the “what”; a way of communicating. Information is distributed through this medium to a mass audience. All you need it a computer and an internet connection and you’re ready to go. Social networking on the other hand is the “how”. This is a platform for engagement between people who share the same opinions and ideas. It is a circle of friends, family and colleagues.

Interaction

The communication line in social media is one way. That is why social media is said to be a medium of delivery. Information is distributed to the audience for their perusal. There is no interaction between the distributer and the reader. This is completely different when it comes to social networking. Communication is very much two way, where the reader can leave comments on what has been posted. Facebook is a perfect example of this, users share their thoughts through posts and all those in their network can comment on it, thus creating a back and forth communication line.

Organisations seem to understand this notion and have taken advantage of it by having Facebook pages. There is one obstacle they are facing though, which is updating their pages on a regular basis. Organisations should consider having a designated person to monitor their various pages and offer responses to better relationships with their stakeholders.

Timely Responses

Unlike social media, responses on social networks are easy to track since the messages are between a network of people who share the same views. Conversations are of the same interest. This is much more difficult when it comes to social media. All because communication is one way and there is very less interaction amongst users.

The above mentioned are just some of the major differences I found in my quest to understand the two concepts. Despite them overlapping at times, they are quite different from each other. They can be used parallel to each other to create relationships, which will increase brand awareness for individuals or organisations. If it still not clear what makes the two different here are video clips to help clarify matters.

Social Media in Plain English

Social Networking in Plain English

Bright new dawn for Guinea

Guinea entered a new era today; the first day in office for President Alpha Conde, who won a closely fought contest to become Guinea's first democratically elected president.

I returned from Conakry at the weekend. I was unsure what the mood in Conakry would be like - perhaps frenzied anticipation of a bright new future. In the event, I sensed that people are relieved. Guineans are relieved that after such a hard fought contest in which ethnic rivalries played a significant part, the country has remained united. Peace has been preserved. For this, great credit must go to the defeated candidate Cellou Diallo, and to the outgoing head of the transition government, Sekouba Konate. Guinea now has a revered democrat at its helm; a man whose record in opposition is as inspiring as his ambition for his country is practical. Guinea has a leader on a mission to reduce poverty and create jobs. From what I have read and learned of Alpha Conde - he is not prone to big vision statements, nor to petty politicking, nor will he have truck with white elephant projects; he is a man with a single focus, in the tradition of several African liberation movement leaders (whom Conde has met and worked with) - to improve the welfare of his people - jobs, electricity, roads, healthcare, education, water and food security. Companies who share this ambition, have a bright future in Guinea. Those who don't should leave the country now.

Conakry was spruced up and flags were placed on street lampposts to welcome foreign dignitaries for the inauguration ceremony on Tuesday. A proud nation has reason to be proud again. Marcus Courage

What’s up in Cancun and what’s the deal for Africa?

From 29^th November to 10^th December, the 16^th Conference of Parties (COP16) to the U.N. Framework Convention on Climate Change (UNFCC) convenes in Cancún, Mexico to follow up on last year's summit in Copenhagen, where word leaders failed to negotiate an international, legally-binding treaty to curb harmful emissions of greenhouse gases.

There are low expectations for successful negotiations in Cancun. This is because people have lost faith in not only the ability for a political agreement and consensus to be made, but also in the process. And on Tuesday (30 November 2010), UNEP released a report that concluded those reductions committed to in the Copenhagen Accord, even if fully met, are only 60 percent of the reductions needed to stop prevent global temperatures from rising by more than two degrees Celsius above preindustrial levels – the point considered to be the threshold for catastrophic climate change which will expose millions to drought, hunger and flooding.

So even if an agreement is made at the end of Cancun, the commitments within it will prevent some of the worse case climate change scenarios playing out, especially since from day one of the negotiations, Japan stated that it explicitly will not have anything to do with a post 2012 Kyoto Agreement.

So where does this leave Africa? Ironically, the lack of trust in attaining a political agreement has shifted discussions to issues more relevant to Africa, specifically on finance, forestry, technology transfer and adaptation in general.

Scientists agree that the best starting point for adaptation is to be rich, though it is not foolproof: not even the rich can buy off all hazards. But wealth buys information and it opens up options. Resources help people adapt both before the fact, by reducing risks, and after it, by aiding recovery from harm. Wealth can create hedges against the effects of climate change. It is wealth that Africa, compared to the rest of the world is short of.

Fortunately, a key pillar of the Cancun negotiations is the establishment of a Green Climate Fund, which was agreed upon in Copenhagen – disbursing $30 billion in 2010 to 2012, and then $100 billion each year after that until 2020. Multilateral funds have been established before so it’s not as if the Green Climate Fund is charting new territory. However, the political sensitivities and the criteria countries will have to meet to access these funds are looking onerous.

If African countries want a piece of this pie, they will have to focus seriously on governance, transparency, monitoring and valuating their carbon emissions and sinks - a tough job for any country. It would seem that many African countries will need funding to build this capacity in the first place. All of this is feasible, but African countries need to now use these conferences and meetings to gather information, exchange knowledge, learn and build their expertise from the participants and get everything in place so that they are an attractive destination for new climate and development specific funds.

For more information on climate finance and to check out the flows and channels, visit the new platform created by the World Bank and UNDP to track climate-change related finance by region, focus area, sector or financing mechanism: http://www.climatefinanceoptions.org/cfo/index.php. And to be ahead of the games for the climate change negotiations in Durban, South Africa, the official COP17 website was just launched: http://www.cop17durban.com/Pages/default.aspx

Microfinance Meltdown?

The microcredit industry has grown in size and scale thanks in most part to the success of Mohammed Yunus’ Grameen Bank, which now serves over 7 million poor Bangladeshi women. It is in India that a number of problems have been surfacing in the last year or so. And it’s a sizeable problem that could get bigger when you consider the size of the industry in Africa - 427 microfinance institutions in Africa, lending more than $4.8 billion to over 8 million people (Mix Market (Microfinance Information Exchange).

The New York Times today reports that Indian banks have about $4 billion tied up in loans – about 80% of all microfinance in India. They’re increasingly worried about their returns in the state of Andhra Pradesh, where politicians, angry at how microfinance institutions are profiting from the poor, have encouraged borrowers to stop repaying their loans.

It’s a slippery slope as banks stop lending to protect from the increasing risk of defaults, and action spreads from state to state and country to country. Despite new legislation to regulate how and when lenders collect, there is an increasing feeling that what started out as a social development movement has become more capitalist and cut-throat than Wall Street.

That’s true in Africa too. Microcapital.org reported in January 2009 that the Malawian government had decided to stop guaranteeing loans from MFIs, given the “exorbitant” interest rates, naming two institutions that did not report to the Mix Market and did not publish lending rates.

The Central Bank of Nigeria and the Nigerian Deposit Insurance Corporation (NDIC), in an attempt to audit and regulate the microfinance industry, simply shut down 224 out of 800 mcirofinance banks. Microfinance Africa makes the point that while regulation is needed, the reputation of the industry now needs work.

About 10,000 organisations around the world have lent about $25bn to about 20 million people. An article by the BBC cites demand could be as much as $250bn. In the same article, Kate McKee, senior policy advisor at the World Bank's Consultative Group makes a now-oft-heard comparison to the financial crisis - that strong investor interest in the US sub-prime mortgage market created incentives for unsustainable growth and aggressive lending and the microfinance industry must guard against repeating the same pattern.

The Centre for Global Prosperity has an interesting article looking at the two mindsets in the approach to microfinance – profit and altruism. While this is in the context of the controversial IPO of SKS Microfinance in India it is a global issue. Like shareholder activism, if borrowers start to feel they are being taken advantage of – whether through NGO, government or civilian intervention – those dream rates of 95% repayment might be on the way down.

But then so will the opportunity to get out of poverty for the millions of people who have so far benefitted from microfinance. Philanthrocapitalism is one thing – many corporates, banks and private individuals want to see some financial return in the work they are doing to create good. But in Africa, as in India, there has to be more weight on philanthropy. The WSJ quotes an interview with Mr Yunus: "Microcredit should not be presented as a money-making opportunity. It is an opportunity to make an impact on poor people's lives”.

Governance - a victim of crime?

Governance is an important part of a nation’s brand, particularly with regard to attracting foreign investment. The annual Ibrahim Index of African Governance, looked upon as a credible calibration by the international community, was released on Monday, when South Africa saw its ranking move down to 5^th place due to high levels of crime, despite high scores in public management and most other areas.

Mo Ibrahim foundation board director Mamphela Ramphele commented that, "South Africa is in the Top 10 in every other category... but [with crime] we are lounging down there with the Somalians of this day and Zimbabweans. It's not a pretty place." In fact, in the personal safety sub-category, South Africa was ranked 44^th – still above Cameroon, Nigeria, Chad, Mauritania, Zimbabwe, Sudan, the Democratic Republic of Congo and Somalia, but not exactly where the country wants to be.

Crime’s been a target area in South Africa for the last twelve months, given the country’s hosting of the FIFA World Cup amid global concerns about safety. So why the drop? Is the issue policing, poverty or politics? Ramphele identified the root of the problem in the "political culture" of countries: "In our country, South Africa, we have fantastic policies but the performance doesn't always match the policies.”

She draws a parallel between business and government. Activist shareholders keep businesses in line. What we need is citizens’ involvement to drive better governance. But for that you need citizens with the same interest and stake in their government as a shareholder does. In a country where 95% of the population don’t pay taxes, 95% of the population have no reason to fight for a system that makes better use of their money.

But what does the future hold for driving governance, and who are the leaders who are going to ‘up’ the calibrations and raise the rankings on a pan-African scale?

The Ibrahim Prize for Achievement in African Leadership was not awarded in 2010 for the second year running, with no candidate that promoted excellence in leadership. It will be interesting to see how initiatives like the African Leadership Network build a more cohesive community of leaders for the community that might raise the rankings and compete for the award.

Meanwhile, does South Africa forge ahead trying to tackle crime in an isolated manner, or will the country use this as a benchmark for treating the root cause of poor governance overall?

Resource Rents: China & Africa

This week the International Growth Centre held a three day conference at the London School of Economics and africapractice was there to hear the latest debates and discussions surrounding economic growth in Africa.

China’s presence in Africa has been a ‘hot topic’ for some time now, with questions surrounding the legitimacy of resource rents generating considerable controversy. However, with African countries weathering the tides of global recession better than their western counterparts the potential and future in Africa for business and development has once again been highlighted. As the continent begins to experience accelerating growth, with Nigeria predicting GDP figures of around 10% by the end of 2011/early 2012, it is increasingly important that international actors understand what impact China is having on the business environment in Africa, and get to grips with the implications of Chinese involvement for their own investment prospects. As Chinese investments appear to be overshadowing those of the West and the African Union looks to the East for economic partnership, such considerations cannot wait.

It was not surprising, then, to see that the nature and impact of China and Africa’s relationship was debated by experts such as Paul Collier, director of the Centre for the Study of African Economies, Oxford University, and academic co-director of the International Growth Centre, and Christopher Alden, a reader in the Department of International Relations at LSE at the IGC conference.

The talk itself covered various points of interest, considering to what degree Chinese investments, and in particular resource rents (which involve exchanging infrastructure commitments for resource rights), are producing positive results for Africa. There is certainly no denying the scale of Chinese investment, with Chinese FDI into Africa at more than US$5.4billion in 2008 and new projects and agreements being announced on an almost daily basis, or indeed their importance.

One especially interesting area of deliberation was sparked by the question of whether infrastructure is the key to Africa’s future economic development. As Chinese investment has focused on infrastructure in particular this question is central in establishing the potential for China’s investments to help Africans reap economic rewards in the future.

Although China has signed some contracts to build schools and health care centres the deals have more often been more narrowly focused round transportation networks and resource extraction technologies, which of course enable the Chinese to obtain and export their share of the minerals extracted as well as providing security of investments. Concerns regarding the importation of Chinese labour to complete these projects and the lack of integration of these workers in to African communities have limited the positive impact of these opportunities for the continent, although more recently some countries, such as Angola, have been able to negotiate awarding a percentage of subcontracts for each project to national companies. Nevertheless, some of China’s actions have raised more serious questions concerning human rights issues, for example concerning weapon sales to Sudan.

International reaction to China and Africa’s ‘relationship’ has been somewhat confused and mixed. Paranoia, however, has been central, with fears that Chinese investments in Africa might mean there will be no room left for other international investors to pursue economic opportunities and contracts in the region. Western actors also seem concerned China will act as a barrier, with African governments and companies preferring to work outside their colonial networks free from the conditions often imposed by financiers in the West. However, the continent has potential beyond acting as a base for resource extraction, which is something China has yet to fully appreciate. Thousands of entrepreneurs and innovators await the education, access to communication networks and financial backing necessary to get their business ideas started and enable the diversification of their economies.

Within many industries, including resource based ones, there will increasingly be more room for investors who pursue infrastructure development in its widest sense, who recognise the role of Africans in the continent’s development and who focus on building the trust that comes from being culturally aware and involved. These things will be essential to nurturing positive economic interactions across borders, and the key to Africa’s economic development in the next decade.


Kathryn Brooks

South Africa's Entrepreneurs

I went along to a book launch at GIBS last night, for “South Africa’s Greatest Entrepreneurs”, published by Nigerian author Moky Mokura.

The book profiles “22 of the most successful and dynamic business visionaries” who have changed the shape of South Africa in their time. The entrepreneurs featured are: Sol Kerzner, Alan Knott-Craig, Koos Bekker, Herman Mashaba, Mark Lamberti, Adrian Gore, Raymond Ackerman, Pam Golding, Nkhensani Nkosi, Jenna Clifford, Whitey Basson, Mark Shuttleworth, Donald Gordon, Eric Ellerine, Natie Kirsh, GT Ferreira, Robbie Brozin, Carrol Boyes, Brian Joffe, Gary Morolo, Ndaba Ntsele and Anant Singh.

GIBS clearly has entrepreneurialism at the centre of its foundation, being the brainchild of Professor Nick Binedell’s entrepreneurial spirit. Working in the technology space in particular, how to find, fund and facilitate entrepreneurs is an ongoing discussion. I don’t think everyone is cut out to be an entrepreneur, (which is a good thing, in my opinion), but I do agree it’s an essential part of driving a developing economy, building new foundations for future businesses.

On Thursday night it was mostly a collection of white, middle aged men who took to the podium to describe their experience of being an entrepreneur in South Africa, and with limited time, the insights were also a bit limited unfortunately. Aside from the usual rhetoric about working 24x7, the high chances of failure etc., it was sometimes hard to tell the difference between a successful entrepreneur and a successful business leader.

What was great to see was that Moky had persuaded the profiled entrepreneurs who attended the book launch to donate an hour of their time to mentor an aspiring entrepreneur. That’s the real resource – the direct and dedicated insight, which will be incredible for anyone who bids and wins for that time. I guess even the genuine entrepreneur can still do with advice and direction from experience!

With that in mind, what was missing for me was the younger generation of entrepreneurs, the up and coming. I know the book is a reference tool to those who have succeeded over the years, but I also think that their stories have been told before, albeit not in this form in a single place. For me it’s about trying to find the entrepreneur that you haven’t heard of yet, who may have a new experience, different advice, given the environment that today’s entrepreneurs are working in is completely different.

Having said that, a book dedicated to South African entrepreneurs does at least show (to the outside world, the doubters), that the country is producing top-class talent, has the history of success and a foundation of knowledge to build on.

I think we all still have something to learn from these entrepreneurial titans, but I’d be intrigued to see what a different collection of people and experiences the same book might produce in five years time.

Paywalls – are they the future to the survival of electronic IP?

Our content is valuable and good quality information, you should start paying for it!

The Times of London recently put up a pay wall on all information produced for their website; you will now have to subscribe to access its contents online. It cost you £1 to access the website for one day and £3 per week.

Blogger Jon Rodoff, wrote a brief history of paywalls (http://radoff.com/blog/2009/11/30/a-brief-history-of-paywalls/):

This article shows that the history of paywalls, although chequered, has produced some success stories. In 2002, Financial Times started charging readers for their online content, yet still managed to increase subscription rates – in fact, the FT achieved a 30 percent increase amongst online subscribers in 2009. While it is easy to take FT’s success as a great case study, it’s important to note that they focus mainly on corporate businesses rather than individuals and they hold a specific position in the market.

Wall Street Journal is another company that implemented a paywall for some of its online content. The paywall itself is only effective when you access the website directly, however one can still access content behind the paywall by going through Google links. So begs the question, has it generated expected revenues for the newspaper?

New York Times earlier this year also announced that starting January 2011, they would place some of its content behind a paywall. Some articles would be available for free, then to read further, subscribers would be required to pay a flat fee to access it.

This begs the question: with so much content on the internet would you want to pay to access information that is readily available on another website?

Early figures, and a study by Nielson Net Ratings (http://www.boingboing.net/2009/11/30/notes-from-a-news-si.html) shows that there has been a significant drop in the newspaper’s online readership since the introduction of paywalls. Like any other website’s success, traffic is essential, it determines the number of advertisers vying for space on a website. Sharing networks affect trends. A story gets shared, and generates a lot of traffic – but if a fraction of those new readers don’t keep coming back for more, will advertisers want to?

The first company to support Murdoch - owner and founder of News Corp, was Apple with the iPad, when it launched a paid iPad application that will support The Times. The Times is now selling full-page display campaigns in to its iPad app, for which readers pay £9.99 per month. This application offers specially designed Monday to Saturday editions of The Times to users, including most sections of the paper - which can be downloaded and read offline. With so much content on the internet will this new business model work? Rupert Murdoch certainly thinks so. He says the introduction of paywalls is vital for the future of journalism and the sharing of information online. Murdoch believes that more and more publications will follow this model to ensure the survival of their businesses.

Is this the future? The next months will definitely tell an interesting story!

Gabon knows how to celebrate! 50 years this week!

Gabon, the Central African nation with a small population and big ambitions, celebrated fifty years of independence this week. 14 African heads of state joined President Ali Bongo Ondimba for the celebrations in Libreville. The day was marked with the opening of an Exhibition commemorating Gabon’s arts, culture and economy, as well as a military parade, fireworks and two concerts.

If you are unable to travel yourself to see the Exhibition in Libreville (it is open until November), then why not take a tour of the nation’s newly launched Virtual Museum of Culture and Arts. It’s well worth visiting -

http://www.legabon.org/livre/livredor_en.php

On the eve of the celebrations, the Gabonese government announced that it had recently signed infrastructure investment contracts totalling $4.5bn dollars. These foreign direct investments are expected to create 50,000 jobs.

A catchy song and music video were released too. View it here – the rhythm is contagious!

http://www.gabon50ans.ga/article/l-hymne-du-cinquantenaire

Extracts from President Ali Bono Ondimba’s Independence Day Speech:

History

We are commemorating the 50th anniversary of Gabon’s independence. For every one of us, it is a day to rejoice and celebrate our unity and peace.

I have the great honour today to recall the memory of the father of our independence, President Leon Mba, first President of the Republic of Gabon. Gabon and its citizens remain grateful to him for steering our country to independence. .

We must remember too President Omar Bongo Ondimba, second President of our Republic, who left us almost a year ago, and who was a great architect of modernity in our country. He consolidated our national unity and built our state on solid foundations, bequeathing us a great and significant heritage that we must protect and conserve.

Building the Republic

Beyond the festive nature of this great day, we should recall what Gabon was during colonisation: a simple site of exploitation of wood and mineral resources. At independence, Gabon inherited nothing. Almost everything needed to be constructed. We had to get to work resolutely, with little in the way of a framework available at that time, to establish a state and to endow it with modern infrastructure – schools, hospitals, universities, roads, ports, airports, railways etc..

Those are the achievements of the Gabonese - Gabonese by origin, by adoption or who have come from elsewhere and who have made Gabon their home. Through the many efforts and sacrifices of a nation, they have constructed with love and devotion, stone by stone, our country. Each has been able, at his time and in his own style, to give the best of himself to build a nation based on the essential values of union, work and justice – the foundations of our Republic.

National Cohesion/Collective Spirit

These values that have been bequeathed to us remain the key to our national cohesion and our continued political stability. Quarrels do happen and we do argue, but we always manage to remain united, thanks to the emphasis we place on what unites us rather than what divides us. It’s important to protect ourselves from the devil of division, especially ethnic division. In 50 years of independence, our country has forged and consolidated institutions of which can be proud.

Transition/Good Governance

Healthy governance is vital. The political transition we went through last year is the perfect illustration of the quality of our institutions and the calibre of the men and women who lead them. It’s an occasion for me to pay a great homage to Madame Rose Francine Rogombé who diligently oversaw and ensured such a smooth transition.

We must recognise the elders who initiated the construction of our country; they have done their share of the work. It is now for our generation to take up the mantle, without egoism, without sectarianism. We must adapt ourselves to a modern age and embrace competence, competitiveness, excellence, and a culture of good governance and selflessness.

Gabon ‘Emergent’

Conscious of the confidence you have shown in me and the challenges and the responsibilities I must meet, I propose that we construct a common future underpinned by a common ambition to transform Gabon into an emerging country like certain countries in Asia, the Americas and Africa, who have designed their own paths.

‘Gabon Emergence’ is not a slogan, a stylistic effect or magic invention. Those criteria that will enable us to develop into an emerging economy are objective and known. They include standards of education, economic performance, sustainable development, infrastructure development, human development and, notably, health. In this domain in particular, I’m encouraged by our achievements and the setting up of mandatory health insurance and the construction of an Institute of Cancer Research at Agondjé, which will permit us in future to treat cancer patients on our own soil.

Gabon’s Own Destiny

Blaming the coloniser is finished. Laying fault with others is finished. We are facing our own destiny, and no one can construct it for us. Development is not a tranquil river. It’s a process that challenges us; the way we think and act. We must break from the past to emerge stronger and to provide a brighter future for our children.
Realising this ambition requires sustained and continuous efforts, sacrifices even, from all and for a term far exceeding political mandates.

Economy

Gabon is able to meet the challenge of transforming into an emerging economy by 2025 thanks to the wealth and employment that our mineral reserves can create in all sectors. Combine these with knowledge and know-how and we begin then to realise our nation’s real potential.

Analysis shows that traditional engines of growth are in decline, particularly hydrocarbons. They cannot provide us with sustainable growth up to 2025. Our ambition for development as well as the necessity to diversify our economy forces us to find other motors of growth. In this regard, 4 sectors stand out: timber, metals, ecotourism and energy.

Developing our timber industry will created hundreds of thousands of sustainable jobs and will encourage the growth of new poles of economic activity on our territory. The contracts signed last week for the creation of a Special Economic Zone in Nkok are part of this drive and infrastructural work will start in only couple of weeks. ... Regarding metals, Gabon can leverage on its traditional managanese exploitation and on its reserve of iron to become a world leader in metal production. The opening next September of a petrol and gas institute at Port-Gentil signals the reinforcement of our capacity in this sector and our desire to develop a pole of excellence in these industries. We have the potential too for growth in the electricity sector, through the exploitation of our hydro-electric resources.....The plant being built in Poubaba in the South-East, the launch of a dam project on the Okano in the North, the plans for another plant at Empress Eugenie Falls in the south, all form part of a national integrated energy development plan that will span our whole territory and sustained our industrial development. Regarding tourism, our exceptional biodiversity and our policy of protecting our national parks underscores our ambition to become a destination for ecotourism. Equally, business tourism offers real possibilities.

Governance

But our ambitions will not be realised if we don’t put into place mechanisms of good governance. That means structures and solid institutions that are well managed and capable of taking on new challenges.

More than ever, we must advance a national programme of good governance. In order for that to happen we must look at the quality and the integrity of the men and women in charge of managing our public offices and state enterprises.

Rule of Law

Our relationship with the law must evolve, because it’s the law that will guarantee social equality and will neutralise future antagonisms. All of our work will be in vain if this elementary thing is not integrated. We cannot stand by and see important investments reduced to nothing by irresponsible and unpatriotic attitudes. No country that favours laxity, impunity, the diversion of public funds or disorder, develops. More than ever we must oppose deviant behaviours of another age, another era.

Infrastructure

Development must include our country in its entirety. I attach great importance to our transport infrastructure, which provides the arteries for economic activity and development.

My recent trip into the interior of the country has allowed me to better understand the needs and the expectations of our people there and gives me confidence in our decision to launch what constitutes the ‘backbone’ of our economy, that is to say, the Libreville-Franceville road, for which the finance is coming thanks to a partnership with some emerging countries that believe in the economic capacity of Gabon. In the same spirit of ‘opening up’ and of balanced development, I launched a month ago the construction of the road between Tchibanga and Mayumba, and the bridge over the Banio. This important site opens up real potential for the construction of a port at Mayumba and the Tchibanga Koula-Moutou Road.


Partnerships

I face the future with confidence. I’m counting not just on all of you to work with me, but also on our partners to help realise our great ambition to transform Gabon into an emerging economy. This is our ambition and our destiny.

During the last 5 decades we have united to build a nation. We had to be patient and determined and also to cultivate a culture of openness and cooperation.

We have been able to count on the support of all our partners, and at the forefront is France, whose traditional and historic proximity to us has enriched us in many cultural, economic and political ways. Through mutual respect and out of collective interest, our partnership has adapted to the demands of today

I would also like to say to our American, European, Asian and Arab partners, how much we continue to recognise their support, which takes many forms and which contributes in many ways to our enrichment and to our development.

Africa

To our brothers, our African friends. Without a shadow of doubt we remain here always at your side, to defend our dignity and our people. Resolutely convinced of our collective destiny, our country will continue ceaselessly to join in with the efforts of those other members of the African Union. On a regional scale, I share the idea that united together, we will meet the challenge of sustainable development together.

THE UN GOES GREEN!

I never thought I would see the day when the United Nations took on board best practices from the private sector. However, this year, the UN launched it’s ‘Greening the Blue’ initiative which aims to raise awareness of the importance of sustainability throughout the UN system and highlight what’s been achieved, what’s happening next and how staff can get involved. http://www.greeningtheblue.org/

The UN Secretary-General’s call for all UN agencies, funds and programmes to become climate neutral and 'go green' on 5 June (World Environment Day) 2007, kick-started the systems and procedures to measure and reduce the environmental impacts of the UN family. Many of these systems and procedures, and how they are measured and reported against, have been taken from the private sector.

The website lays out the UN’s achievements very clearly and is an impressive platform. It’s not boring or too technical, with even a cute little cartoon video, starring characters call ‘Flip’ and ‘Norma’!

Granted, it was a UN agency that creating the Global Reporting Initiative and the UNFCCC is the world’s clearinghouse for climate change information. So I suppose we should not have expected anything less, and some have even argued why we had to wait so long for this initiative to have taken place. But I must admit coordinating and managing information from all 50 of its funds, agencies and programmes must not have been an easy feat. It makes me think that if the UN can implement this type of reporting, then there is no reason why large multinationals cannot demonstrate this level of transparency too.

The website also holds some useful resources for organisations and businesses to implement climate change related activities. One such publication is ‘Kick the Habit’, written for individuals, businesses, organizations and governments with the aim of helping to reduce our shared carbon footprint. Breaking down scientific jargon and simplifying policy documents, the guide provides readers with up-to-date information and actionable steps for helping to achieve climate neutrality. http://www.greeningtheblue.org/resources/staff-engagement

I am glad now that the UN can be seen as walking the walk and is offering a leading example in environmental and climate change communications and reporting.

The relationship between CSR and policy

I’m not going to get into the specifics of South Africa’s mining policy environment, but I read Frans Cronje’s opinion piece in Business Day, “Engaging the State” with interest – and found a surprising take on CSR – not something I’d expected to come across within the topic.

Bank of America Merrill Lynch has produced a report that looks at some of the challenges facing the metals and mining industry in SA, and how the policy environment made it difficult to try and split Anglo American into international and South African assets to unlock value.

Without getting into the ins and outs of mining rights and politics, Cronje, deputy CEO of the South African Institute of Race Relations, is making the point that the government should not be afraid to enter into dialogue with the private sector in these circumstances. So not to ignore or challenge reports that critique the system, but to welcome the views of an engaged private sector, given the common goal of setting South Africa onto a path of further, better socio-economic development.

What made me sit up was Cronje’s point that “The government would be wise to see the report as a refreshing example of true corporate social responsibility — so different from the cliched vegetable gardens or soup kitchens that have come to pass as corporate social responsibility for many companies.”

I don’t think that most company CSR policies come down to soup kitchens and vegetable gardens, there’s incredible work being done on a large scale, but his point that a business’ engagement with government on hard issues could be seen as CSR is an interesting one. For all the definitions of CSR, self-regulation, giving back and creating a positive impact, managing the impact of a business on society, policy is rarely included.

Should corporate social responsibility directly address and take actions to support or work towards policies that also aim to create a positive impact on the economy, as well as the community?

In many large organisations the CSR departments don’t even sit in the same building as the policy people. There are, however, businesses that have aligned the work they do within community to highlight problems and try to force governments to recognise where policy needs to change. The danger is extrapolating Cronje’s point too far, when business feels it can criticise and pressurise governments in the name of ‘Corporate Social Responsibility’ without fulfilling the actual social impact part.

Where there is a connection between CSR intentions and policy requirements, there is more impact and an opportunity for aligning economic and social agendas – if governments listen, of course.

Africa needs more Mo Ibrahims.

I was with Mo Ibrahim yesterday, in the plush offices of his foundation. What a great man. Self-effacing, generous and very committed to advancing better leadership in Africa. I first met him in 2004, before he had sold Celtel. He was a businessman then, with an interest to make money and to help tell the world, particularly institutional investors, about the business opportunities that Africa was yielding for his company and an industry which he had been working in all of his adult life – telecoms. With the attainment of huge wealth after the sale of Celtel to Zain, Mo has lost none of his gentle charm and none of his big ambition either. ‘If you are going to do this’, he said to me, then ‘do it big’, in reference to an assignment that africapractice is supporting the African Union with.

Mo has an armoury of facts and anecdotes at his fingertips, built up over many years doing business across Africa and courtesy too of the research that his foundation carries out and the circle of friends that Mo now keeps. Combine this with his passion, his conviction and the respect that we accord any successful businessman (not bankers!) who take a risk and make a fortune (building a GSM business in Africa in the early 1990s was perceived as a big risk believe it or not; only Development Finance Institutions could be persuaded to share the risk), then you have a serious, straight-talking and effective spokesman for Africa. Africa needs more Mo Ibrahims.

Marcus Courage

Africa Talks Climate

A new initiative has been developed to help communicate and advocate on climate change issues in Africa. Africa Talks Climate is a research and communications project undertaken by the BBC World Service Trust and funded by the British Council. http://africatalksclimate.com/

Africa Talks Climate recently launched a report about the public understanding of climate change in 10 African countries with the aim of identifying ways to engage, inform and empower Africans in local, national and international conversations about climate change. The report found that most Africans understood that their climate was changing but the term ‘climate’ is rarely used outside South Africa and francophone DR Congo and Senegal. There is also a strong tendency for people to hold themselves individually or collectively responsible for these changes, which they blame on local environmental degradation.

The report recommends that information and communication needs of African citizens need to be at the heart of any national response to climate change. The ability of African citizens to respond effectively to climate change will be determined by the quality of the information available to them and how easily they can access it. Increased public understanding of climate change will enable citizens and communities to discuss the issue, adapt to the effects of climate change, and make informed long-term choices about their future.

Africa Talks Climate suggests that local leaders from government and the community, as well as religious leaders should have more access to climate change information and that there is a need to increase the public debate on climate change and create more public spaces for example through TV talk shows, radio call-ins and other interactive media platforms. There is also a need to break down perceptions of climate change as an elite discussion and build a sense of immediacy to encourage the sharing of current examples of adaptation and mitigation to climate change.

In the absence of an understanding of global climate change, many people draw on their existing knowledge and beliefs to explain the unpredictable weather. Some Africans understand changes in the weather in relation to their spiritual beliefs – particularly women and rural populations, hence the importance of activating local religious leaders. Some opinion leaders compare the communication challenges posed by climate change to those formerly presented by HIV and AIDS. They emphasise the importance of using accessible terminology and discussing climate change in a locally relevant way.

The report also stresses the important role media and education can play. Media, and in some countries, schools, are the main sources of climate change information for most people. Media therefore need to improve their knowledge, resources and experiences about climate change in order to inform audiences more effectively. Some journalists perceive climate change exclusively as an environmental issue, which is not an audience or an editorial priority.

Overall, the report assumes that to improve environmental stewardship, Africans need to be educated more about the causes and effects of climate change in order to adapt to the damaging impact it creates. However, a main driving force for behavioural change in Africa relates to improving household incomes and creating more financially secure futures. What therefore also needs to be communicated is the short and long term economic benefit that can be accrued through different adaptive techniques. All activities related to mitigation and adaptation to climate change in Africa need to have a strong element of economic benefit for the citizens in order for Africans to be incentivised to undertake the activity and for African countries to alleviate poverty levels on a sustainable course.

The report can be downloaded here: http://africatalksclimate.com/research/africa-talks-climate-public-understanding-climate-change-ten-countries

It's really over...

Today is the first day of 2010 that's not about the FIFA World Cup build up or football matches. What are we going to do? As a nation, are we left bereft, with the anticipation of nothing more in our future? Are we able to pat ourselves on our backs for a job well done? When will we know if it has been a success? What makes it a success? How did we do folks, how did we do?

First things first, I think we need to look internally, to ourselves for that evaluation. It isn't about what the rest of the world thinks, it is about what South Africa thinks. And from where I am standing, we did pretty darn well. But I would say that wouldn't I? So let me take you through my thinking...

Infrastructure and Organisation:
We got it up, we got it running and we HAD A PLAN if the wheels fell off. And they didn't. Despite all the naysayers the stadiums worked (and if you were lucky enought to attend a match at Soccer City you would know just what I am talking about), the transport worked, and the lights stayed on! We made it happen.

Crowd Control:
During the event there was not even one match disrupted by crowd violence and I believe our peacekeeping authorities (by this I mean the good old SAP) did a sterling job. We have shown the world that we are not about the stereotypes - this is not only a beautiful country, it is also filled with warm, welcoming people and incomparable experiences for those who venture forth onto African soil.

Soul:
If you haven't heard the call of the vuvuzela by now, or at least heard about it, you obviously haven't watched a world cup match. I am proud to say South Africa really got behind this one. Even when Bafana Bafana was knocked out, we all chose new teams and kept on celebrating this fantastic carnival of football. Were we sad when Ghana was knocked out and we lost our last African hope? Of course, but we rallied again, and again..... it's in our soul as Africans to pick ourselves up, look for the best and keep on singing!

So, although it is really over, the legacy remains. This African World Cup has shown international audiences that we really can do it. It has shown Africans that we have what it takes. And it has shown South Africans that with a little goodwill and a lot of energy we can use an event like this to make a difference for everyone. Thank you FIFA for choosing us to host your 2010 event, we did you (and ourselves) proud.

Award winning journalism

I was in London last Thursday for the Diageo Africa Business Reporting Awards. It was a hot week in the city, and for some journalists who came over for the ceremony, the first time they had been to London.

It was great to put faces to names, and to have the opportunity to meet some of the leading journalists from around the world. Each had something insightful to say about the role of the media in Africa, their personal position, country, career.

Kerry Dimmer, winner of Best Infrastructure feature with ‘The Scramble for Blue Gold’ in African Decisions, South Africa, made a great speech commenting that these awards really help promote the journalists who win them. Uganda's Francis Kagolo from New Vision said the same of his award (Agribusiness / Environment feature) that it puts him in the field of greater journalists in Africa, all of whom should be working to put forward the best reporting.

When ‘Spark Africa Series’ by Peter Vlam and his team at Africa Interactive won Best Use of New Media in a Story, I didn’t quite realise the extent to how widely they work; 800 freelancers, mostly on the continent, so as well as creating content this is an exercise in capacity building and empowering local media.

Felix Dela Klutse of the Daily Guide Newspaper, Ghana, who won best business news story with ‘China Takes African Market by Storm’, got a great reception. Perhaps some fellow countrymen in the audience, or a general affinity with Ghana given their success in the World Cup (who were knocked out the next night, much to my dismay).

I was also privileged to meet with Oby Ezekwesili, the Vice President of the World Bank for the Africa region. Having been in conference calls and board meetings all afternoon, she arrived fresh and smiling, happy to have her photo taken with the finalists, after speaking about the economic opportunities on the continent.

Stephen O’Brien Permanent Under Secretary of State for International Development, who was born in Tanzania, talked about the role that government and business has to play, and the importance that the perception created by the media plays in investment decisions. He made the point that when sat round the boardroom table, looking where to put your money, you have about 3 minutes per country. Not long for in-depth analysis, therefore key indicators and headline reports are crucial.

Good to see some of the journalists represented at the awards last week already making that headline difference.

Lagos: Megacity or Crisis City?

 
“Lagos is a state of mind” - a message fervently echoed by Friday’s panel at the School of Oriental and African studies in London. An evening discussion with Jaasper Moelker of Urban Detectives, Simon Gusah, a Planning Consultant in Nigeria and Kunle Adeyemi for the Office of Metropolitan Architecture stirred a lively response from the auditorium composed predominantly of well informed Nigerians with a personal concern for the future of Nigeria’s nerve centre – Lagos.
 
The explosive growth of Lagos – by 2020, it will be the third largest city in the world, with 24 million inhabitants – has brought near-paralysis to the city’s ring of highways. Lagos’s infrastructure is being pushed to its limit, resulting in severe traffic congestion. This contrasted with the city’s impressive estimated 3.6 trillion Naira (£16 billion) annual turnover begs the question, Megacity or crisis city?

Although chaos filters through all parts of Lagos life, it is arguably stable and organised chaos. Where there is a place, people will occupy it, reflected in the bustling marketplace and booming informal economy. Gusah, an advocate for this standpoint, was clear in his thoughts: there is no problem in Lagos. The government and the private sector create the problem they believe they are trying to solve. They have not learned what makes Lagos tick and it certainly does tick. The crisis lies within the structure of government; their inability to carry out infrastructure programmes and policies that last beyond two years is shutting down development. Improvement takes five, ten, maybe twenty years which requires relentless commitment. At present their priority is to award new contracts when it should be to concentrate on the current.
 
Adeyemi’s fascinating presentation introduced what the Office of Metropolitan Architecture envisages as the saving operation, the 4th mainland bridge. The 1.5km long bridge will be the missing link completing a transport ring around the city, connecting Ikorudu with the community of Aja/Lekki, and facilitating the rapid expansion of the eastern corridor of the city. While vehicle traffic flows on the bridge’s upper deck (which includes lanes for BRT buses), the lower deck facilitates the inevitable hustle and bustle of Lagos in a more conducive environment. Markets, kiosks, shops, bars, and restaurants will generate a new area of pedestrian convergence, fostering economic growth, social life, culture and interaction. An image included in Adeyemi’s presentation featured a Prada store alongside the fruit ladies on the lower deck – an interesting vision!
 
So, it seems that this potential megacity could be just that – the work of Fashola, Governor of Lagos State, was considered by the panel as positive progress. Gusah commented, "In Africa, you are praised for doing your job and Fashola seems to be doing his...I am as happy with his work as I am with the work of my local council. Fundamentally there is nothing outstanding about this but we must think of it relative to other African leaders and politicians.”

Lagos is not a city in crisis, but its rapid growth poses serious questions that need intelligent answers and responsive, responsible and flexible governing. This is the problem with great opportunities and Lagos undoubtedly presents a great opportunity.
 
 

"Un-caging the lions'' - How Business is transforming Africa for the better.

Article published in the Economist magazine June 10th.

For once an investment fad seems justified: the 21st century is shaping up to be that of the emerging markets, just as the 20th was America’s century and the 19th Britain’s. But that leaves open the question of which countries, exactly, will emerge. Will Asia and Latin America mark the limits of the spreading prosperity? Or will the boom reach the perennial laggard, Africa? Will a new pride of economic lions take their place beside the Chinese dragon and the Indian tiger?

Ten years ago The Economist dubbed Africa “the hopeless continent”. Since then its progress has been remarkably hopeful. In 2000-08 Africa’s annual output grew by 4.9% (adjusted for purchasing-power parity), twice as fast as in the 1980s and 1990s and faster than the global average of 3.8%. Foreign direct investment increased from $10 billion to $88 billion—more than India ($42 billion) and, even more remarkably, catching up with China ($108 billion). The Boston Consulting Group notes that, since 1998, the revenues of Africa’s 500 largest companies (excluding banks) have grown at an average of 8.3% a year.

But is this growth sustainable? Or is the current fad for Africa just another bubble? The pessimists have always had three strong arguments. One is that African politics is dysfunctional. Warring strongmen can undo the progress of decades in weeks. A second is that the African economy is unduly dependent on the resource sector. A third is that Africa’s growth does too little to benefit the poor. But over the past decade, all these objections have weakened.

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Banking on mobile phones: Out of thin air Jun 10th 2010The numerous examples of government failure can now be weighed against examples of success. The continent’s inflation rate has been reduced from 22% in the 1990s to 8% since 2000. The World Bank’s annual “Doing Business” report ranked Rwanda as the world’s top reformer this year, based on the number and impact of steps to promote entrepreneurship there. Mauritius was ranked 17th of the 183 economies covered by the report, ahead of lots of richer places.

It is true that Africa has depended on its abundant natural resources; and they will be a growing advantage in years to come. The hectic pace of growth in the emerging world is not only pushing up commodity prices but also intensifying competition for the right to drill the continent’s oil and mine its minerals. Chinese companies in particular are wooing African governments with lavish expenditure on infrastructure.

McKinsey points out that the natural-resource sector accounts for only about a third of the continent’s growth. Africa is producing a growing number of world-class companies outside the resource industry, from South African giants such as SABMiller, the world’s second-largest brewer, and Aspen Pharmacare, the largest generic-drugmaker in the southern hemisphere, to niche players such as Tunisia’s Coficab, one of the world’s most successful suppliers of wiring for cars.

As to the poor, McKinsey points out that, thanks to rising living standards, some 200m Africans will enter the market for consumer goods in the next five years. The consultancy also notes that the continent’s working-age population will double from 500m today to 1.1 billion in 2040. Consumer-goods companies ranging from Western giants such as Procter & Gamble to emerging-market car companies such as China’s Great Wall and India’s Tata Motors are pouring into Africa. Foreign firms are likely to start using Africa as a base for manufacturing as well, as Europe’s population shrinks and labour costs in India and China rise.

Africa is also seeing the benefits of “frugal innovation”—inventions that are designed to serve the poor. Mobile-phone companies, which have done more than anybody to improve the lives of poor Africans, are continuing to innovate. Kenya’s Safaricom and its rivals are pioneering money-transfer by mobile phone (see article); mobile savings and agricultural-insurance schemes are next. Companies from other emerging markets are also expanding into Africa. Bharti Airtel, which completed its $10.7 billion acquisition of Zain Africa, is a world-leader in improving services while reducing costs.

Nor is innovation confined to telecoms. Vijay Mahajan of the McCombs School of Business at the University of Texas, Austin, produces a long list of innovators in everything from the design to the distribution of products. Nakumatt, a Kenyan retailer, allows people living abroad to buy vouchers for its stores and then transfer them to their African friends and relatives, making remittance payments smoother. Other bottom-of-the-pyramid innovations include the Jiko, a portable charcoal stove that can reduce fuel consumption by 30%; the Q-drum, a doughnut-shaped plastic container that can be used to transport water by rolling it along the ground; the Weza, a foot-powered generator that can be used to charge cell phones and radios; and a $20 washing machine made from discarded motors and iron.

Lions and bulls

A decade of growth has also given Africa’s business people a new élan. Mo Ibrahim, a mobile-phone pioneer, has established an index to measure governments’ performance and an annual prize of $5m, plus $200,000 a year for life, to an African leader who rules well and then stands down. He has also founded a venture fund which plans to invest $200m in Africa this year.

Such successful entrepreneurs can point to countless examples of how business can improve people’s lives. In Kenya, where the government has removed its dead hand from the telecoms market, mobile phones are ubiquitous; in next-door Ethiopia, where the government’s grip is as tight as ever, only 2% of the population has phones. A few African lions are beginning to take their place next to the dragons and tigers.