Book Launch: 'The New Harvest: Agricultural Innovation in Africa'

On Monday 17th January africapractice attended the UK launch of Professor Juma’s latest work ‘The New Harvest: Agricultural Innovation in Africa’. Calestous Juma is Professor of the Practice of International Development, and Director of the Science, Technology and Globalization Project at the Belfer Centre, Harvard University. ‘The New Harvest’ is both ambitious and optimistic as Juma sets out the opportunities available for Africa to ‘feed itself in a generation’.

Addressing the audience, Professor Juma began by stressing the importance of agriculture in Africa, not just as a sector within African economies, but often as the key one. He also highlighted its interconnectivity with other policy areas and economic sectors, meaning that if current opportunities are harnessed successfully the potential impact will extend beyond the agricultural, but also that in moving the agricultural sector forward it is necessary to ensure the involvement of other sectors and actors. For example, by improving efficiency in farming poverty relief may be effected, given that the poorest are often farmers. However, improvements to agriculture can be made by making improvements in other areas, for example improving transport networks to key trade areas. Juma pointed to the example of President Bingu wa Mutharika of Malwai who, by taking on the role of Minister of Agriculture and Food Security as well as the Presidency, demonstrated the wide ranging importance for the Malawian socio-economy of its immediate agricultural development.

In acknowledging the strong role agriculture has to play in Africa’s development Professor Juma rejected the idea of a linear trajectory for economic development that claims countries transition from agricultural, to industrial, to service based. Both Juma and the panellists stressed that agriculture should not be viewed merely as a stepping stone to other development, but appreciated for the value it can bring in itself.

In the book itself Juma identifies and explores three key opportunities for the transformation of the agricultural sector in Africa going forward. Firstly, he argues that there are significant gains that can be made through regional cooperation. In particular Juma discussed the ways in which cooperation between various ministries and sectors could be beneficial both within and between countries. Secondly, he championed the opportunities that technological innovations and scientific advancements present for increasing efficiency, and protecting against risk. For instance, he cited the example of farmers using text messaging to pass on weather updates. Finally the professor stressed the importance of encouraging and facilitating entrepreneurs within the African agricultural sector who would be able to find new ways to drive the sector forward using in-depth local knowledge, not necessarily relying on imported ‘wisdoms’ that are not always a ‘good-fit’.

This book is accessible, as well as timely, given recent advances, such as the development of drought and disease resistant crops and the spread of mobile technology. Its emphasis on the importance of structures and networks through which policy can and should be decided provides a context which should facilitate sound and appropriate decisions in African agriculture moving forward. Such an approach enables the book to have wide-ranging relevance in a continent characterized by its diversity, whilst the inclusion of plentiful case studies included provides practical insight at the policy level. The challenge ahead is significant if African countries are to make the most of the opportunities laid out by Professor Juma, but the outlook is positive if the interaction and coordination of individuals across both sectors and geographical boundaries can be managed.

Kathryn Brooks

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”.

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

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.

Why CSR in Africa can be a unique force for good

In the poorest slum district of Addis Ababa, Ethiopia, some 50,000 people receive fresh drinking water and sanitation facilities through a project run by an NGO called AMREF. I was lucky enough to visit this community in Kechene and talk directly with the beneficiaries to understand the impact of this project, a corporate social responsibility (CSR) project funded by the Diageo Foundation, a premium drinks company.

What my colleague and I unearthed was a project well planned, thoroughly implemented and carried out by passionate people who genuinely wanted to improve the standard of living for those living in Kechene. Although we catalogued numerous benefits, the real impact on the community was evident to me when I met Meselu Abreham. Meselu is a local resident in charge of one of the water and sanitation committees who look after the new facilities. Before I could thank her for telling us about her new role, she ushered us into her one-roomed house and headed directly for the only ornament in the room, an earthen vase made by her cousin. She was adamant that we take it and keep it as a gift from the people of Kechene, as a thank you for changing their lives through the project. After some persuading, we were obliged to accept her kind offer which now resides within my own house as a symbol and reminder of the powerful force good CSR can be in Africa.

CSR in Africa is different from CSR in Europe or America. It has different driving forces. The strength of regulation in Europe and America encourages improved environmental performance and ethical business practices. Institutional investors and shareholders play less of a role in how the companies they invest in behave. The level of environmental and social awareness from consumers and employees is not at the same intensity and expectations about how businesses should operate are different. Interestingly in Africa, because companies are so embedded in the fabric of society, businesses are expected-and eager- to play more of a role in developing the communities in which they operate.

Consequently, there is a large difference in the potential for impact of CSR in Africa compared to more developed countries. Because of these differences, there has been an encouraging debate about what exactly is CSR in Africa? Is it just window dressing to improve corporate reputation or does it really add value to the company’s financial bottom line and the community at large?

It was this debate that I frequently found myself in during conversations whilst travelling across the continent . This is what sparked the idea of the East African CSR Awards. It was clear that many companies were investing in community development programmes and improving their operations to reduce environmental impacts and increase employee health and safety. The awards therefore aim to showcase initiatives which have truly benefitted the society, environment and businesses in order to clarify what good CSR in Africa looks like.

A recent seminar in Monrovia, Liberia this year hosted by the Brenthurst Foundation looked at developing guidelines for CSR in Africa. This demonstrates that there is a need for clarity. An initiative like the East African CSR Awards can help develop an understanding of how the private sector can create sustainable development and alleviate poverty in Africa.

On the judging call to decide the winners and highly commended projects for the Awards, some common themes began to appear:

· A commitment to investing in time and resources to assess what the project should be, what benefit it would bring to the business and community / employees and how it should be implemented. This commitment creates innovative and context-relevant projects such as Unilever Tea Tanzania and Kenya’s ‘Lightning Detection Programme’.

· An integration of business incentives with environmental and social good, as illustrated by Sandali Woods and their strong ethos for sustainability.

· Comprehensive monitoring and evaluation systems to record not just outputs but actual development impact. Eastern Produce Kenya’s Environmental Programme and Mabati Rolling Mills’ project clearly demonstrated that ‘what gets measured gets managed’.

· Community-driven activities in order to foster community ownership and sustainability as Tullow Uganda’s project demonstrated.

· Strong partnerships with credible NGOs and local authorities to ensure an element of sustainability and alignment with government policies, as was characterised by Safaricom’s ‘A World of Difference’ secondment programme and Unilever Tea Tanzania’s Forest Conservation programme.

· A multi-faceted approach to the project, ensuring different elements such as awareness raising and management mechanisms were put in place, as demonstrated by Nile Breweries Supply Chain project.

Over the course of the year, the Awards secretariat hopes to work with its partners and judges to develop these guidelines and criteria with the hope of stimulating more successful CSR projects in East Africa and assisting the government in creating an enabling operating environment for businesses to implement excellent CSR. Ultimately, with everyone playing their part, the private sector can drive an inclusive model of economic growth for Africa, providing equitity and sustainability.

I would like to thank all those involved in making the first East African CSR Awards a success – the Honourable Tanzanian Minister of Trade, Industry and Marketing, the sponsors – Bank M Tanzania and Dow Chemical East Africa, the partners – the East African Business Council and the East African Magazine (Nation Media Group), the distinguished panel of judges and the chairman of the Awards secretariat, Mr Elvis Musiba, and last but not least, all the companies who entered.

What do you want to be famous for?

What do you want to be famous for?

And we’re not talking just 15 minutes. India has become the destination for software development, as well as a number of major outsourced processes from accounting to call centres. As new markets emerge to offer services at cut prices, whole new industries spring up around the world, boosting economies and cutting costs, and corners, for big industry. Markets like Costa Rica, the Philippines and Ireland compete in the call centre industry as well, for example, but Africa has now started to look at what it can sell on the global BPO marketplace.

As The East African writes this week: For many developing countries, outsourcing is the ultimate get-rich-quick scheme. The author writes about “the lure of the half-trillion-dollar market”, which has seen 65% growth from 2005 to 2009, 85 per cent of which is unaddressed, being irresistible.

But none of this is inevitable. It takes strategic investment from public and private sector to build the infrastructure, the talent, the demand for a particular service. While Kenya wants to become the top BPO destination in Africa as part of its Vision 2030, there’s a lot of ground work to be done – locally and internationally.

Could African countries succeed in positioning themselves as an outsourcing destinations, as a way to boost the economy, create jobs, to develop new industries? Some of the raw ingredients are there: a young labour force that can be trained in new skills, for example. More importantly, labour is cheap while the cost of property and development and source materials is lower than in much of the world.

Take the film industry. We’ve already seen Mexico, Canada and Eastern Europe become choice destinations for films ‘located’ in the United States, as they offer cheaper locations. Already numerous advertisements that seem to take place in Rome or Paris are shot in Cape Town.

But it’s not as simple as a price tag. Whether it’s a call centre or a cinema lot, to build an entire industry involves infrastructure, technology, people, training, facilities, tax breaks and an economic landscape that encourages start-ups and new entrants, rather than kills any competition.

The GIBS’ review this week touched upon it, with a review of an article from Knowledge@Wharton about Chinese development, and a comparison with India.

“A crucial aspect of the Chinese version of the developmental state has been the creation of physical infrastructure like roads, airports, electricity, internet, etc., writes WMG Media. India, in contrast, has neglected the state provision of physical infrastructure in favour of ‘soft infrastructure’ – building human capital, especially the use of the English language, to make the country a resource of service professionals for businesses all around the world.”

So there are different routes to be taken to establish a centre of excellence and a capacity to solve and service a global need, but it definitely doesn’t come to those who wait. It takes private and public collaboration and conscious planning. As countries like Rwanda and Kenya invest in ICT and skills they may not immediately compete with the likes of India and China, but they’ll sure compete favourably with the rest of the continent.

Private Sector Development in Africa – Perceptions and Realities

Can the private sector really be a driver creating opportunities for people to escape poverty and improve their lives? In theory, private sector development should be the ultimate driver of socio-economic development through job creation and its contribution to economic growth. In practice, several factors such as perceptions of Africa, insufficient policy frameworks and dependence on international aid have resulted in limited private sector impact to date.

After working in Africa for a while, one easily forgets that many outsiders still have a very “Live Aid” image of Africa. They do not know it as a region with one of the highest growth rates and a rising, well-educated middle class, but rather think of it as a place of war, famine and corruption. This persistent perception, despite recent progress and achievement, also disempowers Africans, engendering a sense of ‘passive victim’ rather than ‘accomplished entrepreneur’.

Investors who take the time to understand the continent and its opportunities tend to be well rewarded. The British firm Tullow is probably one of the most striking examples. Not too long ago, it was still a smallish outlet but its investment and belief in the African continent has already triggered the fundamental transformation of two economies and thereby the success of its own operations. The investment Tullow made in oil exploration in Ghana and Uganda has led to significant discoveries that have spelt a new and lucrative future for both countries.

Apart from the abundant natural resources found in most of her countries, Africa is also touted as the potential food basket of the world. Agriculture accounts for more than 50% of GDP and up to 90% of employment across much of the continent, but productivity remains low. And while there has been much talk about transforming the sector, the reliance on subsistence and small-holder farming has proven more than a stumbling block to developing diversified economies with higher levels of income, than an opportunity in itself.

For private sector development to work, African countries and its development partners need to create policies for commercially viable markets while promoting their country’s image and competitive advantage. An example of this is Kenya; after the arrival of a new high-speed internet cable, recognized the opportunity for Business Process Outsourcing (BPO) through the pairing of enhanced connectivity and its relatively large base of well-educated workers.

Ultimately, the promotion of value-add industries and the development of the required policy frameworks and infrastructure will allow the private sector in Africa to make significant progress in its development and contribution to job creation and poverty alleviation. The classic example of trying to sell chocolate as a finished product instead of selling cocoa as a raw material has lost none of its appeal.

Climate finance after Copenhagen

Calculating the real cost of climate is a highly complex and contentious affair. It is undeniable that we need to fundamentally transform our economies to get on the path of low-carbon growth, especially by reducing energy consumption and reliance on fossil fuel and halt deforestation as one of the biggest single contributors to climate change. We also need to adapt our way of life to the unavoidable effects of climate change such as changing rainfall patterns, extreme weather events and rising sea levels. While it remains difficult to calculate the costs of the required action on such a massive scale, there is a clear urgency to make substantial funds available as soon as possible.

A variety of climate funds have already been established, most of which have a very specific purpose and relatively limited funding from donor countries. A proposal for a new approach in raising up to $100 billion a year for “Green Fund” for the transition to a low-carbon economy by the World Future Council has been taken up by the IMF. The principal idea is to raise finance through the issuance of additional Special Drawing Rights (SDRs), a reserve asset created by the IMF. The creation of “new money” by issuing new SDRs should not cause inflation if the funds are productively invested into renewable energy.

Africa has long been demanding significantly increased climate funding as the continent most affected by and least responsible for climate change. The official Proposal by the African Group in Copenhagen demanded the establishment of a new adaptation fund to finance the full costs of adaptation activities and the related transfer of technology sharing and capacity building in developing countries, with sources of funding be new, substantial and sustained public funding from developed countries, with an annual scale not less than 2.5 % of the GNP of developed countries. The hopes for such significant funding were shattered together with many other aspirations for the Copenhagen conference but at least some commitment was made in the Copenhagen Accord with regard to climate finance:

“Scaled up, new and additional, predictable and adequate funding as well as improved access shall be provided to developing countries, in accordance with the relevant provisions of the Convention, to enable and support enhanced action on mitigation, including substantial finance to reduce emissions from deforestation and forest degradation (REDD-plus), adaptation, technology development and transfer and capacity-building, for enhanced implementation of the Convention. The collective commitment by developed countries is to provide new and additional resources, including forestry and investments through international institutions, approaching USD 30 billion for the period 2010-2012 with balanced allocation between adaptation and mitigation. Funding for adaptation will be prioritized for the most vulnerable developing countries, such as the least developed countries, small island developing States and Africa. In the context of meaningful mitigation actions and transparency on implementation, developed countries commit to a goal of mobilizing jointly USD 100 billion dollars a year by 2020 to address the needs of developing countries. This funding will come from a wide variety of sources, public and private, bilateral and multilateral, including alternative sources of finance. New multilateral funding for adaptation will be delivered through effective and efficient fund arrangements, with a governance structure providing for equal representation of developed and developing countries. A significant portion of such funding should flow through the Copenhagen Green Climate Fund.

To this end, a High Level Panel will be established under the guidance of and accountable to the Conference of the Parties to study the contribution of the potential sources of revenue, including alternative sources of finance, towards meeting this goal.”

While the Ethiopian Prime Minister Meles Zenawi was criticised by many for his willingness to compromise and settle for less adaptation funding than requested, the fact that there now is such as fund can partly be attributed the to Joint appeal of France and Ethiopia from 15 December. Meles is now a member of the high-level panel for the Green Climate Fund which has a formidable task ahead in addressing the following key issues:

1. Out of the USD 10 billion committed, how much is new and additional money, i.e., not a diversion of Official Development Assistance (ODA) or previously committed funding to deforestation by countries such as Norway or low-carbon growth by countries such as the UK? And if it is not “new money”, how should additional commitments be measure without penalising countries for their commitments earlier on?

2. What will be the mix of public and private, bilateral and multilateral, including alternative sources of finance for the fund and will the funds be dispersed as grants or loans?

3. Which financial institution will allow fulfilling the long-standing demand by developing countries to have balanced representation in the administration of the fund in addition to figures such as Meles already taking prominent positions?

4. What will the money be spent on? Just deforestation and forest degradation, adaptation, technology development and transfer and capacity-building as outlined in the accord or other measures such as finalizing national low-carbon growth and adaptation plans, improving in-country capacity to design and implementing national climate change actions as proposed by the UK, Mexico, Norway and Australia?

5. And last but not least, how will Africa build its capacity to be able to absorb and us additional climate funding after 2012, especially if it comes anywhere near the USD 67 billion for adaptation and USD 200 billion for mitigation as requested in the run-up to Copenhagen?

Despite all the shortcomings of Copenhagen, the rather timid initial financial commitments together with the prospect of something more substantial might provide a good opportunity to address these questions and make climate finance work for Africa

African Innovation Comes to London

In the past month or so I have been spoilt for choice when it comes to Africa-focused events here in London. I am always pleasantly surprised by just how many Africa-enthusiasts are based on this little island – there are of course the 2 million-odd diasporans with family links to the continent and many others who have taken a keen interest in the continent for other reasons. I have found both types of people at Africa Gathering and BarCamp Africa UK recently and both events have been buzzing with ideas, entrepreneurialism and enthusiasm for positive change and innovation in Africa.

Africa Gathering in October brought together thinkers and do-ers ranging from philanthropist Bill Liao to the founder of FrontlineSMS, Ken Banks and the eccentric Kevin “Banana Man” Alan. The inspiring rapper Emmanuel Jal gave a moving account of his experience as a child soldier in Sudan and how he is only eating one meal a day until he has raised enough money for his charity Gua Africa to build a school in his hometown to educate young people affected by war.

I was at the first Africa BarCamp in the UK at the weekend along with a hundred or so other tech enthusiasts sharing some really exciting ideas. Miquel Hudin shared his website, Maneno (meaning ‘words’ in Kiswahili) which is a communication and blogging application built to serve the specific needs of Sub-Saharan Africa. Frederick Wamala from the LSE shared his thoughts on how we must secure Africa’s newly acquired fast internet from cyber crime in order for it to be an effective medium for Africa's development.

I’ve had some fascinating conversations at these events and have been really happy to see just how many people are as excited about opportunity in Africa as I am. Growth and opportunity have been key themes that have come out of both events as well as the African philosophy of Ubuntu (we are who we are because of others) which I see as fitting for the take-up in interactive and social media across the continent.

Things you might not know about Africa

The africapractice team had emails flying round in response to the question: What do people not know about Africa?

There are plenty of preconceptions and misconceptions about the continent, but here are a few of the facts and figures that came up last week:

• Seven countries in Africa account for more than fifty per cent of the population (Nigeria, Ethiopia, DRC, SA, Tanzania, Kenya, Sudan)
• Africa holds about 10% of the world's proven oil reserves
• There are up to 100 million members of the African Diaspora
• The longest cable car in the world is in Nigeria
• South Africa sold $1.8 billion worth of cars to the US last year, putting us ahead of Sweden and Italy as suppliers to the US market
• Africa is most affected by climate change but only produces 3% of global emissions
• Approximately half the population of Africa is under the age of 18
• Kenya is one of only five countries in the world that generates more than 15% of their electricity from geothermal sources
• Africa is the fastest growing telecoms market in the world
• Nigeria has a population the sum of the thirty one smallest countries in Africa
• Only 4% of Africa's hydropower potential is utilised currently
• Rwanda is ranked first by the Inter-Parliamentary Union in terms of the percentage of female politicians in its lower chamber, with 56.3 percent.
• The largest cement plant in the world is being built in Nigeria
• South Africa is the first, and to date only, country to build nuclear weapons and then voluntarily dismantle its entire nuclear weapons programme
• Almost 50% of all African immigrants in the United States hold a college diploma
• In the mid 1990s, there were more phones in New York City than the whole of Africa. But if the growth curve in mobile devices in Africa continues, it is likely to surpass the United States in number of mobile consumers
• The city of Pretoria, in South Africa, has the second largest number of embassies in the world after Washington, D.C.

A list of facts won't change people's image of Africa in one go, but it's all part of a far richer picture then a lot of people realise exists.

Meeting for Africa in New York

Near the end of September, New York will be a flush with Heads of state, CEOs and executives. They will be flocking to the city not just for the annual UN General Assembly, but also the annual Clinton Global Initiative, a CEO’s working lunch on the Millennium Development Goals (MDGs), the African-American Institute Awards Gala Dinner and the Africa Investor Index Awards.

Increasingly, businesses are being welcomed to governmental and multilateral events. It is a sign that all parties are recognising the need for collaboration and mutual understanding. And the growth of Africa-focused events is also a promising sign given the impact of the financial crisis on aid flows to the continent.

At the CEO’s working lunch on the MDGs, the main topic of discussion will be how Africa can make substantial headway to attaining at least some of the MDGs. The theme of this year’s African-American Institute Awards Gala Dinner is “Nurturing Democracy and Hope for Development in Africa.”. Interestingly, most of the sponsors are from the corporate world, including Constant Capital Partners, Chevron, DeBeers and Exxon Mobil. Corporates are being recognised for their contribution to Africa’s development and many businesses are doing a good job of it at that, as highlighted by Africa Investor’s Index Awards, which awards and recognises Africa’s institutional investors, stock exchanges, best performing listed companies, stockbrokers and capital market regulators. These awards demonstrate the burgeoning financial industry in Africa which is driving economic growth.

As for the Clinton Global Initiative Annual Meeting which brings together business, government, and civil-sector leaders to plan and launch specific projects, ‘Commitments to Action’, to address global economic, environmental, and social challenges, it probably comes as no surprise that most of these 391 commitments are projects based in Africa. Many of these commitments are from large corporations such as Diageo, Standard Chartered, Coca-Cola, Nestle, Guaranty Trust Bank, Equity Bank Ltd, and Philips. Again, it is a demonstration of the private sector driving social, environmental and economic development in Africa.

More obviously can be done - we are still along way away from attaining all the MDGs in all African countries. As it stands, corporate contributions to Africa’s social and environmental development mostly takes the form of philanthropic giving. However, there are signs that companies are beginning to view their role in Africa’s sustainable development slightly differently.

Over the next five to ten years, I believe we will see a shift from ‘Corporate Social Responsibility (CSR)’ thinking and a philanthropic giving mentality, to a more strategic approach to sustainability. I believe we will see the following trends:

· Business management strategies and the ways of doing business will increasingly start to embed ecological, social and ethical viewpoints and measurement tools and standards. Many MBA courses in the US and the UK are looking at the development of strategies which create business as well as social and environmental value.

· More companies will begin to tie their marketing strategies with green initiatives, as we have seen with electric and hybrid cars.

· Larger companies, through their public affairs department, will increasingly engage governments on environmental and social policies to deepen their understanding of public opinion and public policies especially in the themes of climate change, energy and water.

· Companies will move away from providing grants to non-governmental organisations to investing in stimulating small to medium sized social enterprises such as ‘clinical social enterprises’.

· All companies, large and small, will begin to use social media and online tools more frequently to improve their stakeholder engagement methods and transparency.

My hope is that businesses who are beginning to implement some of these initiatives are showcased at events like those taking place in New York, so that they can be replicated and adapted into other business models.

Doing Business 2010

The International Finance Corporation (IFC), a World Bank institution, released its annual “Doing Business 2010” report yesterday. The audit looks at how countries around the world have improved the environment for small to medium businesses (including sole traders and entrepreneurs) to set up and do business.

Singapore remains at the top for overall “ease of doing business” but some interesting results for Africa – and opportunities for sharing best practices.

287 reforms were recorded in 131 economies (June 2008 to May 2009) – a record – but more significant was the fact that low- and lower-middle-income economies accounted for two-thirds of reforms in 2008/09. Is the economic crisis hitting developing nations harder than we thought, kick-starting reformers into action to attract more inward investment?

Rwanda – the top reformer - introduced reforms in 7 out of the 10 categories (such as registering property, enforcing contracts, getting credit, protecting investors), rising from 143rd to 67th place on the ease of doing business rankings – and the first time a Sub-Saharan African country has led the world in reforms. Liberia entered the top ten, while Mauritius and Sierra Leone were also recognised for leading in certain areas.

So post-conflict countries have a reason to reform as well it seems – again with the driver of attracting Foreign Direct Investment. While business reforms are only one part of economic development / recovery, it is one area that the government can manage, monitor and measure. The question is how much the private sector can influence the government – but big business has to realise the advantages of a thriving SME sector in that case.

Rankings are one thing – the World Economic Forum also released its 2009 / 10 global competitiveness index yesterday, to give countries even more numbers to compete on, but surely what counts is the experience in each country. As Penelope Brook, Acting Vice President for Financial and Private Sector Development for the World Bank Group said – absolute scores are what matter. A women trying to set up a retail business in South Africa is not going to care what others are going through in Ghana or Guinea; what matters is the speed and ease of processes for her. All the top rankings in the world count for nothing if people on the ground don’t experience change.

So where to from here? Is it the case, as Thierry Tanoh, IFC Vice President for Sub Saharan Africa, states, that we are seeing a sea change in the way Africa views investment, or is it a short-term shift in rankings due to circumstance? There are remarkable signs of progress in Africa, with the likes of Rwanda providing a roadmap for others, but the ability to maintain that momentum, and weather the storms of political, economic or social changes is crucial – for domestic and international audiences and investors.

African Approval of Obama

In the week that Hillary Clinton arrives for her seven-country tour of Africa, how is Obama seen throughout the continent since taking office?

Much has been made of Obama’s Kenyan heritage in his popularity rankings, but the reality is that he is following a path set by his predecessor in the White House. For all the criticism and complaints about the Bush administration (which we won’t get in to here), George W did set a strong US policy for Africa, including the Millennium Challenge Corporation and the U.S. President's Emergency Plan for AIDS Relief, the largest commitment by any country to combat HIV/AIDS in history.

While Obama’s trip to Ghana, followed so quickly by Hillary’s tour, make for a very public show of the US prioritisation of Africa, the US already enjoyed 73% approval from 33 Sub-Saharan African nations in 2008 – compared to just 34% across the world on average (Gallup).

Gallup has released further stats from March / April of this year that show that six of the seven countries surveyed (Kenya, Cameroon, South Africa, Uganda, Senegal and Mauritania) have seen an increase in approval of the US leadership since 2008. From an increase of 25% in Cameroon to an 11% drop in the final country – Djibouti – media approval across the seven went from 80% in 2008 to 87% in 2009. Substantial – but I’m not sure it points to more than any global media frenzy around the first Black American President would produce.

More interesting would be to compare approval of the US with sentiment towards the Chinese across Africa, for example. Why do we continue to hold the US up as the most important benchmark? However, despite the increasing influence and involvement of the BRIC countries in Africa, the suggestion that the US is trying to counter China’s rise in Africa with Clinton’s tour is “is a Cold War paradigm, not a reflection of where we are”, as the assistant secretary of State for African Affairs told Bloomberg.

While we read, write and blog about the impact of the Obama administration on Africa, are we obsessing about the topic by force of habit, by virtue of the media profile the topic enjoys, or because it actually counts?

Indeed, what difference will the trip make to the average African questioned by Gallup? To the major oil and mineral exporters in the countries that Mrs. Clinton is visiting – a few tax breaks or trade agreements, perhaps. But looking back to the statistics, Gallup states that at least 3/10 respondents in each country in their survey said the U.S. president makes a difference to their country. Even given the variation from country to country, that still leaves an awful lot of people in Africa that feel the US president makes little or no difference to their country – a far more pertinent statistic in my opinion.

East Africa wired!

East Africa suddenly finds itself inundated with optical fibre cable: the SEACOM cable went live just last week and hot on its heels is the Kenya Government sponsored TEAMS cable which is expected to be switched on in August – both cables battling to claim first-mover advantage and sell as much capacity as possible, as quickly as possible. The next attractions will be the EASSy cable and the France Telecom-owned Lion cable, which should both be connected within the next 8-12 months.

And so the region which has been inhibited by poor telecommunications infrastructure will literally have cable coming out of its ears by the end of 2010!

The first (and most anticipated) area of positive impact is cost. Even though the SEACOM consortium was quick to warn the public that they will have to wait a little longer for cheaper internet as industry players first want to recoup their investments, for countries which have largely been dependent on exorbitantly priced satellite connectivity, the region should still enjoy a noticeable drop in costs. This is because where satellite communication providers were charging as high as USD 7000 per megabyte, the SEACOM consortium will offer wholesale prices in the range of USD 100 per megabyte, with even more subsidised costs of between USD 10-25 to schools, research and health institutions. This is great news for businesses, learning institutions and individuals whose operating expenses will experience some relief in the medium to long term.

In addition to cost benefits, the region’s residents will finally be plugged into the world through reliable telecommunications infrastructure. What a dearth of opportunities this offers east Africa! The increased capacity via broadband internet will enable us to get more done faster - including, for instance, the ability to work collaboratively and securely across great distances, reliable video conferencing, even live streaming of audio visual content in a heartbeat and crystal clear VoIP calls. ‘Regular’ voice calls, international calls in particular, will also now be cheaper and more stable.

Governments in the region should quickly realise progress towards their anticipated socio-economic transformations as universal internet access draws even closer to becoming a reality. They have spent the last few years trying to understand and prepare for post-fibre East Africa - putting in place boards to manage and implement their ICT strategies and building policy and regulatory capacity in preparation for the changes that fibre will bring to their countries that cover critical areas such as identity theft, online transactions, the legality of e-communication and so on. They also expect to see business booming in the Business Process Outsourcing & Offshoring sector and countries like Kenya have already invested in marketing themselves as BPO destinations in Europe and North America.

This level of commitment is great for the region. It should inspire the confidence to stimulate the investments required to get more people and businesses online, moving transactions to cyber space in a region that has been reluctant to do so primarily for internet security reasons.

The push for the 24 hour economy just got a boost with fibre being able to support the communication requirements of companies that would seek to eliminate the traditional working environment altogether, enabling employees to work flexibly in terms of time and location.

The real value of optical fibre is in what the mwananchi (a.k.a. the guy on the street) does with it... the innovative African spirit has been waiting for infrastructure that is robust enough to support its ingenuity and now it’s finally here.

I can hardly wait to see what we do with it!

Superbrands - where to next?

The annual Superbands survey always makes interesting reading – who has pushed who from the top spot, new entrants in the top 500... It gives a bit of an insight into what people care about and how brands are moving into the consumer consciousness.

This year, expanding on a trend we’ve seen in recent years, tech takes precedence. While Microsoft took number one, bumping Google to number three (after Rolex) the order isn’t of so much importance as the volume of IT brands.

The Telegraph quotes Shar VanBoskirk, analyst at Forester: "You may drink a Coca-Cola or Starbucks drink once or twice a day, but most of us interact with Microsoft and Google every hour of our lives. These technology companies have entered into our homes, our offices - even our friendships."

So the question is who or what is next?

The FT raised this question earlier in the week, covering a research report by Wolff Olins, that tipped five food and drink brands from emerging markets to become global brands. As it stands now, there are no African brands in the list (Columbian coffee, Saudi fruit juice, Lebanese chocolate, Chinese wine and Indian liquor). So no tech here then?

Their focus on the East comes from market size – if you are to become a dominant brand you need dominant position in sales and customers – hence India and China. But Africa represents an enormous opportunity of almost 1 billion consumers, with increasing buying power. Not only that, but the “what works in Africa works anywhere” position makes for a hotbed of innovation and new ideas. MXit, the IM platform for mobile, developed in South Africa, is already looking at 17 million registered users across the world.

It will be interesting to see the ensuing battle between established western brands and new names from emerging markets. While everyone seems to be looking East, I’ll have my eyes peeled for the Starbucks of Sub-Saharan Africa or the Rolex of Rwanda.

WEF: A Future Roadmap for Africa

The World Economic Forum in Cape Town last week brought together the public, private and non-governmental sector, as well as media and commentators on Africa.

Here, a final word on Africa’s Roadmap: From Crisis to Opportunity

• Maria Ramos, CEO, ABSA Group: If we can build world-class stadiums we can build schools and health centres. We have the capacity, just not the execution. Africa is only limited by its imagination.
• Graca Machel: Founder, Foundation for Community Development (Mozambique): We need to bring women and young people into the discussion. Women are more than half of emerging markets so must be part of the re-design of a world that equally belongs to them. They bring more than just numbers; but also entrepreneurship, talent, experience.
• Graham Mackay, CEO, SAB Miller: The reality is that business creates wealth. If we could get Africa to grow by 6-7% instead of 4-5% we could solve most of the issues that we have talked about here today.
• Soud Ba’alaway, executive chairman, Dubai Group: Africa needs to take risks. To realise opportunities and success you need more than plans, you need to execute. Africa is a land of opportunity and needs to celebrate its success stories.
• Jacob Zuma, President of South Africa: We need to look at improving the perception of doing business in Africa. Larger economies on the continent should play a bigger role, but smaller ones also need to be ready to work together. South Africa is very transparent – you know the good and the bad of being here as a business, but we will continue to invest in creating jobs and changing the economic landscape.
• Five key priorities for investment and participation:
  o Privatise education
  o Improve health
  o Combat crime
  o Rural development
  o Improve infrastructure

World Economic Forum and the New Global Economy

The World Economic Forum in Cape Town last week brought together the public, private and non-governmental sector, as well as media and commentators on Africa.

Despite the recession, the overall feeling was upbeat. Most conversations were framed within the current economic circumstances, but if I took one message away it was “Africa can do it, but we need less planning and more doing”.

Another theme was that the talent and capability exists already, the resources and the will. Africa needs to celebrate its success stories, to change international perceptions of the continent as a place to invest, as a destination of choice. But it’s easy to be positive in a room of 700 people who all feel the same way. My question is whether Africa believes in itself when faced with international pressure, when confronted with China or Brazil making its demands, or when trying to find a voice at the global negotiations table on climate change, for example.

I do also sometimes wonder what we would all talk about if there wasn’t a global financial crisis on. And what would be the trigger to inject investment into Africa’s infrastructure and tourism business if the continent had not won the opportunity to stage the FIFA 2010 World Cup finals. But while we do have both crisis and opportunity right here and now, there are some interesting discussions.

If you are a Twitter follower, check out #africa09 for a summary of things coming out.
Zaprio’s cartoon posted to Twitter - http://twitpic.com/7g9y3

A quick summary of some of the sessions I attended follow...

Africa and the New Global Economy

• Jacob Zuma, President of South Africa: The global economic crisis is being felt all over. Africa has its own way of response. Its own problems too, but we must do our best in the spirit of belief in a recovery. All economies become inward looking during a crisis, but we must avoid shutting others out.
• Kofi Annan, Co-Chair of WEF on Africa: We are facing a crisis of governance and a crisis of leadership, and need to restore it. Africa needs to be part of the solution by seeking to invest in infrastructure, education, health. We can’t ignore the needs of the poor, or any system we set up won’t last long.
• Ngozi Okonjo-Iweala, MD, World Bank: There is a short-term response, but also an opportunity for long-term development. To quote Hilary Clinton: “Don’t waste a good crisis.” We need to think about shape of the continent post-crisis, working things like climate change in to our solution. China has expressed an interest in Africa – are we crafting our own response or simply waiting for it to happen?
• Soud Ba’alawy, Executive chairman, Dubai Group: There is a misperception of Africa as high risk, it is a good investment destination. Africa needs to develop its own home-grown solution, using its resources, its young population, and to create an environment conducive for business.

UN Secretary-General's message on Africa Day

Africa Day, which marks the founding in 1963 of the Organization of African Unity, now known as the African Union, is meant to highlight Africa's achievements and to offer an opportunity to take stock of the massive and urgent challenges that remain. At the very time when Africa has achieved several years of sustained economic growth and improved stability, the global economic crisis is having a severe impact. We must protect the continent's poorest and most vulnerable people. The international community must not step back from its commitments. For my part, I will continue to urge effective, coordinated action by world leaders, as well as full support for the Millennium Development Goals and the New Partnership for Africa's Development.

Climate change has emerged as a new threat to African development. If we work hard, and agree on deep cuts in greenhouse gas emissions, we can avoid some of the worst consequences — but not all of them. That is why we must also support adaptation, especially for the poor, who will suffer first – and worst. Most of all, we need leadership and commitment at the highest level to seal a deal at climate negotiations in Copenhagen in December.

Africa has also seen a troubling re-emergence of unconstitutional changes of government. This reminds us not only of the need to support democratization, but to strengthen Africa's capacity to maintain peace and security. Toward that end, the UN Security Council is building a closer working relationship with the AU Peace and Security Council. We are also moving ahead with the United Nations Ten-Year Capacity-Building Programme in support of the African Union, especially in the provision of technical support for AU peacekeeping.

Indeed, the past year has seen a welcome expansion and consolidation of the strategic partnership between the United Nations and the African Union, including regular dialogue and cooperation between the UN Secretariat and the AU Commission. As we mark Africa Day, I reaffirm the commitment of the entire UN system to supporting Africans in their efforts to build durable peace, security and sustainable development.

United Nations – Office of the Spokesperson of the Secretary-General