Madiba, If I as an American of African Descent want to do business in Africa thru my own company, let's say in Information Technology, what would you suggest as a way to gain a foothold into the african economy. What is the greatest need/demand on the african continent in information techology? Is wireless internet in Africa's future? What about setting up technology schools in Africa?
If I may add my 2 cents: Africa trails behind in basically every industry including TMT. The beauty with this continent though is that we will not be inventing anything new any time soon but will be able to leapfrog in virtually every industry as the world pays attention to Africa. For example your average African country (South Africa excluded) only has about 1% market penetration for fix lines (ie 1 landline for every 100 people - they waiting list is 3-5 years). Whilst for a mobile phone, market penetration on average is about 40% and growing (can get a sim card in 5 minutes). With 3.5G being rolled out suddenly the unavailable internet access (market penetration is only an average of 4%) is reach kids in the urban areas and the villages. The mobile phone will be king - in Kenya, Safaricom has turn the mobile phone into a tool for surivival. From banking, commodity trading for the peasant farmers, internet access, money transfer, etc. With regards to the internet, if you can figure out how to get $200-500 laptops into Africa (the average price of a smart phone) you will make a fortune. Most Africans depend on super expensive internet cafes for internet access. Also with the completion of the seacom cables in January in Kenya, connecting Africa to the rest of the world, we should see faster internet access across the continent at a more affordable cost. Still early days but a space to watch and one to be dominated by the mobile phones companies again. Access will be best achieve through wireless hence why the mobile phone companies have a head start (and they also have the cash!). As for the schools - Africa is so diversify: they schools for the elite already provide this education. I read an article about the most expensive school in Zambia, only using macbooks and itouch for their kids whilst the rural schools are still learning under a tree. I would imagine that between this space you can find your market. Am one of those Africans that came back after living on 4 different continents for over 25 years. We have a long long LONG way to go (sometimes I think about packing it in) but its never been brighter.
I like to know of one African country that has a very good infrastructure like in Europe? Only the elite and the exploiters of Africa's mineral,oil wealth etc has it. It has promise but,it will never happen in my lifetime.
Soul, you should look up Botswana, dont think its reached European standards yet, but its definately heading in the right direction. Check this article the BBC did: http://news.bbc.co.uk/1/hi/world/africa/4318777.stm
It is a interesting country. I remember thirty years ago when the founder Seretse Khama died. He was a great man and he married a English woman. Back in 79 I read a article about him in Ebony Magazine.
Toughsnail, excellent post. You have given me much to research. I want to discuss an idea with the student union here at Hampton University. I will brief you on it in a later post to this thread. I wish the nations black colleges and universities in this country would form a national consortium on the development of cultural, business, trade and technology between the national economies of africa and establishing links with the peoples of african descent in these americas, caribbean, and Europe. A small step would be better than just talking about it and doing nothing. We need a revolutionary approach for the development of business and trade between africa and the peoples of african descent around the world. What if the peoples of african descent have their own economic union like other groups around the world (i.e. Asians, Middle Easterns, Indians etc...)
I think looking for comparisons to Europe is not a like for like exercise. South America, China and India despite having some of the fastest growing economies do not have the same infrastructure as Europe. I think the interesting thing that is happening in the emerging markets (in our lifetime) are the explosive growths of the economies. Whilst the rest of the world economy was in recession last year (negative growth) Africa grow by 6.5%. Granted its a low base but the leapfrogging and accelerated growth these economies will go through are absolutely mind blowing. I have lived in 4 African countries now in 10 years and its shocking how the infrastructure has been transformed. With China playing "big brother in exchange for mineral rights" access to capital is becoming less of an issue. Suddenly the Chinese have realised that cool they have the mineral rights - now they need to dig it out, ship it out and so they are starting to invest in power, rail, airports, seaports, roads, etc. The other BRIC countries are right behind China. I just participated in Africa's largest private sector transaction for a mobile phone company between a Kuwait operator and India company. Sure it wont happen overnight but there is a hungry China for resources so that it can build its own infrastructure, "feed" its growing middle class/elite and more importantly feed the aged Western world. The biggest challenges in Africa are around political reform, aligning the legal framework with the changes that are happening today, getting the same level of education to the villages and getting the diaspora back.
I totally agree with you. I find it amusing that its actually the black folk that are the most terrified of Africa - including Africans themselves. Whilst George Soros, Warren Buffet, Harvard (other ivy league schools), etc have been investing in Africa capital markets and private businesses for years.
I think that is good for Africa. I never understood why the African governments doesn't give out incentives to people that are educated abroad and come back home to help build up their countries. If they do I have never heard about it. I think African governments should also try to lure black engineers, doctors, lawyers, teachers, or recent graduates in these professions from countries like the USA or England to help build African countries up. Maybe low taxes, living in a great community, the best school, etc. If an government official of Ghana came to me with a proposition like that I think I would move there.
They do sought of. When I was at University there were several African students. A few of them were sponsored by their governmnent to study engineering. Mainly Civil engineering. The goverment would give them grants so they could look after themselves. They were expected to get really good marks as well. Upon graduation they were expected to return to their country of origin and work for the government for 7 yrs. One of my friends was sponsored by the Lesotho goverment to study Civil engineering, but he really screwed up his third year and was not allowed to do a masters . He ended up going to Lesotho, and now works for the government..He gets really pissed of though, because of the level of corruption. And I agree about the favourable tax breaks to lure professionals back to the country.