African Leadership Magazine - December 2018

...the next frontier, covering Africa from Nigeria

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TABLE OF CONTENTS

12

THE NAMIBIAN ANTICORRUPTION MODEL

55 68

SOUTH SUDAN’S NEW PEACE AGREEMENT AND PROSPECTS FOR PEACE AND HUMAN DEVELOPMENT

Thank You Ladder: Appreciate Your Staff This Season

62

Creating value in Africa: Using and enhancing your capabilities to succeed across the continent

42

AFRICANS HAVE AN EXTREME FEAR OF BEING LABELLED AS MENTALLY ILL

46

EDUCATION AND SKILL ACQUISITION ARE ESSENTIAL FOR EVERY INDIVIDUAL

38

Africa’s digital revolution: a look at the technologies, trends and people driving it

27

African Values abhors corruption –Hon. Davies

ABOUT THE COVER

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The cost of corruption is high and the consequences enormous. Some available statistics show that about 80% of Africans love on less than $2 a day.

Corruption is one factor perpetuating poverty. In the December Edition of the magazine; we look at Namibia’s unique anti-corruption model which is helping to change the face of the country.

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CLIMATE DISCUSS

5 WAYS RWANDA IS LEADING ON GREEN GROWTH Vincent Biruta

As a country that aspires to rapid economic growth, Rwanda has set a broad and inclusive national target, known as Vision 2020. The idea is to bring all Rwandans into the country’s development journey, integrating green growth and climate resilience strategies.

For more than a decade, Rwanda has taken a proactive approach and put environment and climate change at the heart of all the country’s policies, programmes and plans. It was one of the first countries to ban plastic bags, for instance. And its commitment to nationwide landscape restoration is such that every year, Rwandans plant millions of trees to protect the country’s forests, rivers and wetlands.

It’s hoped that all of these initiatives will make Rwanda a developed, climateresilient and low-carbon economy by 2050.

So what else is Rwanda doing for the environment? Here are a few highlights.

1. Plastic bags Rwanda’s mission to maintain a clean and healthy environment has been going since 2008 when it banned the use of nonbiodegradable plastic bags and packaging materials. To date, Rwandans use only bags

made from paper, cloth, banana leaves and papyrus, among other biodegradable materials.

It has made a difference. The plastic-bag ban has earned the country a reputation as one of the cleanest countries in Africa. In 2008, Rwanda’s capital, Kigali, was declared one of the cleanest cities in Africa by UN Habitat. It also created opportunities for entrepreneurs who invested in alternative packaging materials (cloths, papers, banana leaves and papyrus).

2. Forest cover To achieve its goal of increasing forest cover to 30% of total land area by 2020, Rwanda has embarked on massive reforestation and tree-planting drive, and new measures such as agro-forestry and training schemes in forest management are being implemented. These efforts, along with the plastic-bag ban, earned the nation a Future Policy Award from World Future in 2011.

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CLIMATE DISCUSS Rwanda has established the Green Fund, a groundbreaking investment fund, the largest of its kind in Africa.

The fund supports the best public and private projects that have the potential for transformative change and that support Rwanda’s commitment to building a green economy. The fund has mobilized around $100 million to date and is a leading example of the impact that well-managed climate financing can have.

5. Green politics For a country to achieve sustainable development, environmental sustainability must be taken into consideration. This applies to policies, legislation and programmes alike. Over the past years, the government has taken measures to ensure national development is in harmony with the protection of the environment.

Thanks to Rwanda’s efforts to put the environment and climate change at the heart of her development, the country’s Ministry of Natural Resources was recently accredited by the International Green Climate Fund. This will help the country attract significant climate finance, enough to enable it to maintain rapid economic growth on a resource-efficient, low-carbon and climate-resilient path.

3. Restoration Rwanda’s commitment to conserve the environment has also been seen through the protection and restoration of degraded ecosystems such as wetlands, lakes and natural forests.

Forests such as Nyungwe, Gishwati and Mukura have been restored and upgraded into national parks. The promotion of these parks, home to a vast variety of flora and fauna, has contributed to the growth of the tourism sector that is currently the principal generator of foreign currency, with US$ 304.9 million and US$ 318 million revenue in 2014 and 2015 respectively.

Located in the northern part of Rwanda, Rugezi wetland (which had dried up because of human activities and climate change) was rehabilitated in 2005. Its restoration led to the recovery of water levels, increased hydropower production in Burera and Ruhondo lakes and a boost for the country’s fishing sector. For this, Rwanda received a Green Globe Award in 2010.

4. The Green Fund As one of the most vulnerable nations to climate change, Rwanda is acutely aware of the challenges that lie ahead. Therefore, to achieve its vision of a low-carbon and climate-resilient economy by 2050,

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Rwanda will also benefit from a Green Climate Fund off-grid solar project that will drive solar use in East Africa through a new investment fund, KawiSafi, which provides equity to clean energy companies with expertise in household solar power.

As a fast-growing nation, Rwanda has the opportunity to bypass old technologies and environmentally destructive development and build an economy that can withstand a changing climate and that provides prosperity for generations to come.

LEADERSHIP

9 THINGS GREAT LEADERS DO IN DIFFICULT TIMES

Do you know what to do as a leader when you’re suddenly under fire?

Here’s a guide from someone who led in a real firefight.

By: Bill Murphy Jr.

Great leadership seems easy when things are good and everybody’s happy. When times grow tough, however, a leader’s true colors are revealed.

Ten years ago, a group of U.S. soldiers tasted combat for the first time in Sadr City, Iraq. I got to know one of the junior U.S. leaders in that battle when I wrote a book about West Point and wartime. (You can read more details on my personal blog, but the short version is that it was a fierce fight, and the start of months of tough, daily fighting.)

Dave Swanson was a 26-year-old lieutenant then. He’s out of the military now, and we talked recently about what he learned by leading 40 soldiers in 82 straight days of combat. Most of us probably won’t be taking a platoon into a hail of gunfire anytime soon, but applying these principles can greatly improve your effectiveness as a leader, no matter what challenges you face.

1. Control your fear.

As bullets whizzed by him for the first time, Swanson says he was very much afraid.

However, he realized he had to subdue his fear because his soldiers were looking to him for clues as to how they should react.

Courage doesn’t mean the absence of fear, and of course being a leader certainly doesn’t mean charging ahead blindly in the face of adversity. It does mean you can’t allow your fear to become contagious. Your team needs to believe you’re in control of yourself, if they’re to have confidence that you can make smart decisions in tough times.

2. Remember that the mission comes first.

You owe a lot to your team for giving you the privilege of placing their trust in you.

First on the list, you owe them a goal worth dedicating their efforts to, and you need to demonstrate that you’re willing to do

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LEADERSHIP whatever it takes to achieve it.

and adapt quickly.

“I say complete the mission at minimal expense to the people,” Swanson says.

“Every military leader will publicly say that the mission comes first, but we always accomplished the mission with the soldiers in mind.”

5. Be tough, but human.

“To those who have been in combat,” Swanson explains, “you live by hardness, intuition, and compassion.”

As an example, he stayed awake and on duty for 60 straight hours at the start of the battle, pushing himself until he physically collapsed, but he also found moments of humanity and even humor in the heat of combat. Your team needs to know that you’re tough, but also that you’re reacting to the world around you like an engaged leader, not a machine.

3. Remember that the mission comes before you, too.

The only way that “mission-first” mantra can work is if your people truly believe that you will put the mission before yourself, too. In a life-imitates-art moment, Swanson says that in the heat of combat, he thought of a line from the 2001 HBO miniseries, Band of Brothers: “The only hope you have is to accept the fact

6. Encourage your people.

that you’re already dead. The sooner you accept that, the sooner you’ll be able to function as a soldier.”

In combat, this means being willing to risk your own safety for others in the unit and the mission. In other contexts, it means demonstrating that you’ll sacrifice your personal short-term interests for the team’s goal. Otherwise, how can you ask them to do so?

4. Rely on your preparation.

Swanson spent years preparing for battle.

He had been an enlisted solider, he spent four years at West Point, and he trained for nearly two years after graduation. While training alone will never quite prepare you to lead in real life, he says, it›s as close as you can get to the real thing.

Business is rarely a matter of life and death, but war certainly is. One of Swanson’s soldiers, Specialist Jacob Martir, was killed in action during the months of fighting, and several others were wounded and sent home to hospitals in the U.S. “It absolutely ate me alive to lose anyone in the platoon,” Swanson says. However, he realized that it fell to him to encourage his soldiers and inspire them to keep going. “They were all special. The next day after any [casualty], I would remind them that each of them had already sacrificed themselves for each other on a daily basis-and how, if required, I would sacrifice myself for any of them.”

7. Communicate effectively.

The same principle applies in any leadership context. Think ahead of time about how you’ll react to tough situations, so you can free your mind in crucial moments to react

In the heat of battle, it’s easy--almost natural--to shut down everything else and focus exclusively on the job at hand.

That’s a dangerous inclination, however. It’s important to make communicating what’s going on a priority as well. Your team and all

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of your stakeholders need to know what’s going on, or they can’t contribute.

“Early on in combat, radio communications weren’t always the greatest, but that was no excuse,” Swanson says. “When technology fails--and it always does at the worst possible moment--you need to have backup ways of getting and giving information.”

8. Use your resources wisely. But use them.

Especially in the first days of combat, Swanson’s unit dealt with destroyed and unarmored vehicles, and insufficient supplies of almost every sort. More important, confusion, combat, and casualties left them critically short of soldiers.

At the same time, they made full use of everything they had. At the end of the first week of fighting, for example, Swanson reflected that he had personally gone through ten 30-round magazines, meaning he had fired 300 bullets at the enemy. Just about everyone else in his platoon had, as well.

9. Imitate the leaders who inspire you.

When Swanson had to act in the heat of battle, especially when his soldiers’ eyes were on him, he thought back to the lessons he had learned at West Point, and some of the other leaders he had known and respected. He also found himself asking a question that has circulated for years among military leaders as a sort of joke: “What would John Wayne do?”

“Regardless of where you work, always continue to learn what makes leaders successful and what makes them fail,” he says.

TRADE & INVESTMENT

AFRICA IS READY FOR LONG-TERM INVESTMENT. HERE’S WHY By: Akinwumi A. Adesina

services, health, education, hospitality and tourism, housing, and aviation.

For decades, risk, or at least the perception of it, has been a major impediment to Africa’s efforts to attract foreign investment. But rapid economic growth and a much-improved business environment are changing how investors view the continent.

Risk, or at least the perception of it, has long been a major impediment to attracting foreign direct investment in Africa. But the African Development Bank(AfDB) is tackling this problem head-on by removing barriers that have stemmed the flow of investment finance into the continent. The transaction-based Africa Investment Forum is the most important step in this process.

For any investor interested in Africa, there is only one place to be this week: Johannesburg. When the threeday Africa Investment Forum opens on November 7, a total of 61 deals with an estimated value of more than $40 billion will be featured in “Boardroom Sessions,” while another $28 billion will be showcased to investors at the “Gallery Walk” marketplace.

By bringing together multilateral financial institutions, pension funds, sovereign wealth funds, and private investors, the AfDB aims to create a mechanism to reduce market, political, and financial risks, and in the process improve the ease of doing business. As part of this effort, the investment forum will prioritize publicprivate partnerships and private-sector deals. The message we aim to deliver is simple: Africa is open for business.

The deals are curated from a total of 230 projects worth over $208 billion, spanning sectors such as energy, infrastructure, transport and utilities, industry, agriculture, information and communications technology, telecoms, water and sanitation, financial

African economies offer tremendous opportunities, especially in energy; infrastructure such as roads, railways, and ports; and agriculture, minerals, oil, and gas. But Africa must turn this potential into streams of wealth for greater prosperity on the continent.

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TRADE & INVESTMENT

Achieving that requires supportive government policies. In every country, the AfDB is engaging with policymakers to improve the legal and regulatory environment and create a more predictable business climate.

These efforts are already paying off. For example, interest in $50 billion worth of investment-ready projects that we made available for pre-Forum screening has been higher than anticipated.

We are delighted that several multilateral financial institutions – including the International Finance Corporation, the World Bank, the Asian Infrastructure Investment Bank, the Islamic Development Bank, the European Investment Bank, the European Bank for Reconstruction and Development, and the Inter-American Development Bank – are cooperating with the AfDB on this effort. Many major financial institutions within Africa – including the Afrexim Bank, the Africa Finance Corporation, the Trade and Development Bank, Africa50, and the Development Bank of Southern Africa – are

also involved. For the first time, these major global and regional financial institutions are cooperating to help de-risk investment projects at scale.

Of course, pledges of partnership are not the only reason for optimism; economic trends are also strong. For starters, real GDP growth is forecast to be 3.5% this year and 4% in 2019. Today, Africa includes five of the world’s ten fastest-growing economies.

Africa has also become the world’s secondmost attractive investment destination.

According to the United Nations Conference on Trade and Development, inward foreign direct investment (FDI) is expected to increase by about 20% this year, to $50 billion, from $42 billion in 2017.

Finally, Africa’s pension funds, insurance funds, and sovereign wealth funds are collectively valued at more than $1 trillion dollars. If Africa could leverage this wealth to attract just 1% of all global assets under management, estimated to total more than $131 trillion, the continent’s need for $130-170 billion in annual infrastructure

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investment could be met. As matters currently stand, Africa faces an annual financing gap of $68-108 billion.

Africa has a huge population to drive consumer demand, a rising middle class, a dynamic youth population, and rapidly reforming governments that are keen to attract these investments. The Africa Investment Forum will provide what has been missing so far: a safe, stable marketplace to accelerate deals.

As anyone traveling to Johannesburg this week will see, Africa is doing its part to transform the investment landscape.

The Africa Investment Forum’s goal is simple: provide a smooth runway for investments in Africa. What we need now are investors who are ready to seize the tremendous opportunities in Africa – and at the continent’s premier investment marketplace.

COVER

THE NAMIBIAN ANTICORRUPTION MODEL HON. CALLE SCHLETTWEIN, MINISTER OF FINANCE, NAMIBIA

Corruption always has a negative impact on economic growth thereby causing decay in the cultural values of the system. In this exclusive interview with African Leadership Magazine, Namibian Minister of Finance, Honorable Calle Schlettwein extensively discusses the challenges faced in the financial sector as well as the country’s general anticorruption efforts. Excerpts:

Limited access to finance is one of the greatest challenges faced by small businesses and firms in Namibia. In what ways do you think this problem can be solved?

Limited access to finance is indeed a challenge faced by small and larger businesses and firms in Namibia.

Although we have made very good progress in providing wider and more

affordable access to financial services in Namibia [cite recent ratings by FinScope, IMF, World Bank], much still needs to be done to expand access to finance for consumers, micro, small and medium enterprises (MSMEs) and agriculture. Our financial inclusion agenda is driven by our Financial Sector Strategy, in terms of which we strive to achieve full financial inclusion whereby all people can gain

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COVER access to a full suite of quality financial services, provided at affordable prices, in a convenient manner, and with dignity for the clients. This includes a venture capital fund, a loan guarantee scheme coupled with a mentoring and training programme to upcoming small and medium sized entities.

These baskets of instruments are tailored to target Small and Medium sized Enterprises where youths and women are the majority stakeholders.

Progress to achieve financial inclusion was made through reforms, as envisaged in our Financial Sector Strategy. These reforms were directed at the following four areas, namely regulatory framework and consumer protection, consumer literacy, access to financial services and local ownership of commercial banks. We have always advocated for fairness, in favour of both the financial service providers and consumers of such services. The reforms that were initiated include Guidelines for Lodging Complaints, a Code of Good Banking Practices, institutionalising Credit Bureaus, drafting the Financial Services Adjudicator Bill and the Consumer Credit Bill and empowering our consumers of financial services with the knowledge in order for them to make informed financial decisions though the financial literacy initiative.

You recently tabled the mid-term budget for 2018/2019 and there has been an increase of about 44% in the projected debt level. What strategies are being implemented to resolve this issue?

We concede that our public debt burden is unsustainable in the long term, but we have adopted a fiscal consolidation strategy and initiated austerity measures to lessen our dependence on funding public spending through debt. I am convinced that our efforts will bring relief in the medium and long term. We have to ensure that each public spending outlay is feasible and each capital project can be justified and is sustainable in future.

In the 2018 Mid-Year Budget Review, I stressed that the enabling adjustments that were introduced are necessary to correct for rigidities experienced in the roll-out of the fiscal consolidation program. This policy response was indispensable to rebalance the macro-fiscal framework with a view of achieving close alignment between public expenditure and revenue outlay on the one hand, and the macroeconomic framework on the other hand. Even the IMF after a working mission earlier this month welcomed the government’s commitment to deliver this year fiscal deficit target and further deficit reductions over the next years.

A cyclical downswing in the economy presents us an opportunity to reboot our toolkits and strategy for more sustainable outcomes. The triple challenges of inequality, poverty and unemployment are the enduring macro-critical challenges which we must overcome to achieve shared

prosperity with the Gini coeffient ratio of 0.56, Namibia is the second highest unequal society in Sub-Saharan Africa.

While we have progressed on this front, starting from high levels of inequality in the order of 0.71 in early 1990, this progress is not good enough. A lot needs to be done for us to achieve shared prosperity and equitable distribution of income, as at the last count, absolute poverty stands at 17.4 percent of the population, with extreme poverty measuring at 10.7 percent of the population, unemployment is high at 34 percent and youth unemployment, in broad terms, higher at 45.5 percent.

To these triple challenges shall be added the limited industrial and productive capacity, with the paucity of technical skills posing binding constraints in the economy.

This is not to discount the progress we have made to date. It is not to discount the distance which lie ahead. To go far, and reach greater heights we must traverse the road ahead together in unison.

If we turn a blind eye to corruption, we can forget about ever achieving the goals of own National Development Plans and the United Nations’ Sustainable Development Goals.

The aura, passion and common consensus from the successful conclusion of Second Land Conference in an independent Namibia, has demonstrated once again that Namibians from all walks of life can hold hands and traverse together for a common end. We have resolved to address this perennial national issue, which holds promise to empower our people and realise value from their natural resource for the betterment of their living standards.

Over the past three decades or so, we have progressed in quantum and in more than one respect as an aspiring nation:-

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Through a decent social wage, which encapsulates the government’s consistent investment in education, health services and social safety net programs, we have been able to make a meaningful headway in pushing back the frontiers of inequality and poverty. Inequality is the second highest in the Sub-region, but it has fallen from 0.71 in 1993/4 to 0.56 by 2015/16, poverty levels are high in the context of average national incomes, but it has been on the downward trajectory, falling from 37.5 percent in 2003/4 to 17.4 percent by 2015/16, unemployment has remained stubbornly high, requiring multifaceted and multisectoral approach to make a remarkable dent on this structural challenge, In addition and against the backdrop of a complex set of external shocks to our economy operating in tandem with domestic structural constraints since 2016, we have been able to adopt responsive macro-fiscal policy framework to chart the pathway from the precarious economic and fiscal environment.

Since then we have rebalanced the macrofiscal framework, thus placing public finance on a sustainable path and setting a basis for future sustainable operations. This does not, however, discount the tightness in fiscal operations which requires us to ensure that expenditure remains aligned to public revenue and we must all live within our means. The framework for long-term sustainable fiscal operations is increasingly gaining strength.

As the Namibian Minster of Finance, what are some of your corporate social responsibilities?

I take the view that any public servant has the primary function and responsibility to serve people and that one has to devote all one’s time and ability towards that task, public service. In my 2018 Mid-Year Budget Review and Policy Statement, I reiterated the following interventions to support the local economy and the financial system: Promoting inclusive economic growth and job creation.

Maintaining pro-growth fiscal consolidation policy stance.

Giving effect to priority resolutions and urgent needs identified at the 2nd National Land Conference.

Implementing targeted measures to reduce poverty and vulnerability.

Implementing industrial development pilot projects.

Protecting expenditure in the social sectors.

Advancing our tax policy and tax administration reform agenda.

Introducing structural reforms to support fiscal consolidation and economic growth objectives by diversifying our narrow economic base, boosting local

COVER economic development and advancing industrialization.

I am resolute to forge ahead with these necessary reform responsibilities. In our private capacities, my wife and I are sponsoring students to further their studies at our university in Namibia.

How is the Namibian government looking to address the country’s shortage in investment opportunities?

I do not believe that Namibia has a shortage in investment opportunities. The challenge lies more in how to promote these and how to attract both local and foreign investors to venture into these prospects. We are working hard to improve Namibia’s investment climate and to enhance the ease of doing business in our country. With the adoption of the “Growth at home” Strategy, the establishment of the Business and Intellectual Property Authority (BIPA) and the review of the provisions of the Namibia Investment Promotion Act to provide for a modern investment framework, we are well geared to put Namibia on the where to invest map.

Also, our Public Private Partnership (PPP) regime and our Public Enterprises Reform agenda will capacitate the emergence of new investment opportunities.

and public sector wage bill. Mobilising domestic resources for development through unlocking domestic savings to plug perpetual savings-investment gap.

The domestic asset requirements for institutional investors have been increased from the 35 percent to 45 percent by December 2018 and further partnerships and collaboration with the private sector will seek to enable domestic savings to better serve the economy. Consultation on tax policy proposals will continue to benefit from stakeholder input with the view to enhance progressivity and equity of the tax

in all dealings, official as well as private to ensure integrity and trust in the institution; There are shifting paradigms of productivity and the need to pursue simultaneously the three productivities of economic, environmental and social wealth. At all levels, sustained productivity improvement must be built on a foundation of effective governance.

system and further protect the tax system from base erosion and profit shifting.

Implementing supportive policies and structural reforms to broaden economic base, local economic development and advance the national industrialisation and economic diversification agenda.

through our own innovation and ingenuity assisted by partnerships, technology transfer, and peer-to-peer networking relationships. On the other hand we must continue to use tested and reliable methods. Fear no change but avoid change for the sake of change.

Kindly share your top five productivity habits with our readers.

Inclusivity and broad sharing of knowledge, we must close the ICT gap between us and the rest of the world and role it out to all corners of the country in order to make our businesses and public institutions more competitive.

Reading and information gathering, keeping abreast of new and innovative ways to improve outcomes. We must take charge of our own productivity destiny

In keeping with the overarching priorities of fiscal sustainability and reinvigorating growth as a necessary condition for job creation, per capita incomes and the reduction of public debts, the key budgetary priorities for the medium term are the following: Front-load the implementation of announced public sector investment stimulus and the promotion of privatesector led investments to support domestic economic activity.

Maintaining a gradual fiscal consolidation policy with strong growth impetus remains central policy stance to safeguard macroeconomic stability and long-term fiscal sustainability, while supporting economic growth and job creation objectives.

Providing scaled-up resource allocation to implement priority resolutions identified at the Second National Land Conference held early October this year.

These are the priorities for more serviced land in urban and peri-urban areas, delivery of low cost housing, improving animal health and processing facilities in rural areas and resettlement and postresettlement support program. Protecting expenditure in the social sectors of education, health and skills development by maintaining expenditure allocation in real terms and implementing measures to improve internal efficiencies, quality of spending and outcomes alongside these measures to strengthen the quality of spending are the ongoing reforms to curb growth in public service personnel

Productivity is the most important determinant of the level of achievement and standard for any organisation or nation. To raise productivity, I believe that one has to embrace the following basic principles: I insist on punctuality. Time is a non renewable, non replaceable commodity and keeping people waiting is tantamount to steeling time; Honesty, accountability and transparency

Set outcome target and measure your achievements against them, we must create a greater focus on improving the productivity of manufacturing, tourism and the agricultural sectors. Engagement of all stakeholder through honest and comprehensive policy dialogue to remain in touch with the needs and aspirations of the real economy;

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COVER Corruption is one of the deadliest hindrances to African development. How where you able to have such a record of integrity and have contributed immensely to your country’s economic development?

It is my personal mission to combat corruption in all its diverse forms wherever it occurs or is likely to occur. This is because I know that corruption has a devastating effect on economic growth and stability.

Essentially, corruption impairs the ability of the government to do its job. It undermines the ability to raise needed revenue, and it

worth. As far as I am aware I am the only Minister of Finance on the African continent having done so. The full implementation of this Strategy will bear Namibia significant dividends in terms of increased public service delivery, corruption prevention, economic growth and employment opportunities.

The Ministry of Finance plays a key role in implementing this Strategy. Amongst others, we are required to carry out the following actions:

viewpoint, what anti-corruption efforts should be explored by African leaders to yield results?

Basically, all countries and regions have to comply with their obligations under the following treaties: Southern African Development Community (SADC) Protocol against Corruption.

African Union (AU) Convention on Preventing and Combating Corruption.

United Nations (UN) Convention against Transnational Organised Crime.

United Nations (UN) Convention against Corruption.

These are important existing legal instruments and all member states are required to strengthen the development of anti-corruption mechanisms; facilitate and regulate cooperation among governments; and develop and harmonise policies and domestic legislation relating to cooperation.

Moreover, all member states are reviewed regularly to determine compliance of member states with their obligations.

Above all, political will to meaningfully fight corruption and fully comply and implement domestic, regional, continental and global legislation must be there.

We were successful in fighting corruption by stopping projects and or the flow of money to projects that were suspected of corrupt activities. Drying out suspect operators and exposing the wrong doing are effective tools.

How do you feel about your emergence as a recipient of the Transparency Excellence Award and Leadership Medal of Honor in Public Service conferment?

also distorts spending quality and decisions.

Moreover, corruption can weaken the foundations of a healthy economy by degrading social norms and undermining civic virtues. Consequent and consistent zero tolerance for any type of corruption in ones official life, but equally in ones private life are my ways to maintain and build integrity.

Namibia has adopted its National AntiCorruption Strategy and Action Plan for implementation by the stakeholders.

Corruption cannot be stamped out by one institution or one individual – it requires a national and global effort. I followed My President, HE Hage Geingob and the First Lady, Madame Monica Geingos in publicly declaring my personal assets and how I attained them. This act of transparency and accountability set an example and shielded us from any suspicion of hidden deals because everyone knew, and there was no room for doubting the correctness of my

Combat illicit enrichment, inclusive of enabling tax authorities to conduct lifestyle audits.

Develop legislation on public procurement to make provision for a register of business entities and individuals who are barred from undertaking government-related work due to previous irregularities and dishonesty or corruption convictions.

Conduct life style tax audit.

Develop and enact an Audit Bill to ensure Auditor-General reports are followed by rectified accounts and actions to hold officials accountable.

Reduce diversion of resources into non budgetary accounts.

Corruption always has a negative impact on sustainable economic development while endangering the society. From your

December 2018 /January 2019 | AFRICAN LEADERSHIP | 15

I am deeply honoured and humbled to be the recipient of the Award. It proves that my philosophy and conviction of rooting out corruption is being recognised. To receive such an award also fills me with pride for what we have achieved in Namibia and therefore I do accept the award on behalf of all Namibians who joined the fight against corruption. It is a fight that can only be won through concerted, persistent collective actions and I am grateful that my efforts were supported and enhanced by HE President Geingob and most importantly the people of Namibia.

If we turn a blind eye to corruption, we can forget about ever achieving the goals of own National Development Plans and the United Nations’ Sustainable Development Goals. Corruption impacts directly on the integrity and functioning of financial systems, good governance, financial stability, and economic development. It is my duty to contribute towards preventing this from happening, and I appeal to all people to join me in the combat of all the different kinds of criminal, illegal, and unethical activities.

CLIMATE DISCUSS

MAPPING A WAY TO A GREENER CONSUMER CULTURE

By Hamieda Parker

Consumption drives environmental collapse. We can blame corporations and governments all we want, but our consumption habits are a large part of the problem. They need to change and the Cape Town water crisis offers a lesson in how we can bring this about.

With global scientists warning that the world is only a dozen or so years away from a deadline to keep global warming below a threshold of 1.5C - or risk worsening the risks of drought, floods, extreme heat and poverty for hundreds of millions of people - the reality of environmental collapse is staring us in the face.

The landmark report by the UN Intergovernmental Panel on Climate Change (IPCC) released early in October said urgent and unprecedented changes are needed to reach the 1.5C target. It is affordable and feasible to do so – and a significant part of

the change needs to happen at the level of consumers.

Consumer behaviour can change Changing human behaviour is considerably difficult, but the Cape Town water crisis offers an excellent example of how consumption habits can change, and change fast, if the right pressure is applied.

When rains were good and dams were full, water was taken for granted. Hardly anyone blinked an eye when driving through leafy suburbs, with sprinklers hissing away litres of water every morning; no-one timed their

showers, or showered in buckets to catch the water and reuse it; and the thought of the taps running dry never crossed our minds.

Then the drought came. And it didn’t go away. Dams almost dried up. The Western Cape government launched an urgent “Day Zero” campaign that worked to change behaviour on a large scale. The city managed to reduce water consumption by more than half to an average of 516 million litres per day in early 2018 down from 1.2 billion litres per day in February 2015.

DECEMBER 2018 /JANUARY 2019 | AFRICAN LEADERSHIP | 16

CLIMATE DISCUSS There is a theory that gives insight into how consumers make choices that helps us understand how this was achieved. The theory of consumption values suggests that people make consumption decisions based on three things: what they know; a moral feeling they get; and a sort of peerpressure.

The Day Zero campaign touched on all three. It focused on water as a finite resource and kept an information stream, if you will, constantly informing people about the situation and the impact of their water usage. People suddenly felt bad about using too much water, and put pressure on those who seemed not to care. The government added impetus with the threat of fines and public shaming.

A recent report on local spending trends shows that 57% of South Africans say they need access to services and products at all times. They want products and services to be available constantly and at the tap of a screen. And they want value. The majority of respondents in the research said they are not loyal to any one retailer; 69% believe the most important thing about a brand is whether it offers value for money. Driven by consumer expectations and demands, brands deliver.

There isn’t a hint of environmental concern in this report. South Africans are concerned primarily about value, so how can we create a consumer culture that is equally concerned about sustainability?

bought a green product of some kind.

The research showed that environmental concern was the strongest reason for “going green”, and that in fact both peer-pressure and moral obligation worked through this concern.

So, for whatever reasons, people become concerned about certain environmental issues. They then seek more knowledge on the issue. Their moral obligation grows.

Their sensitivity to social pressures around these concerns grow. And they make decisions accordingly.

Suddenly, a roadmap starts to emerge. And it has three main lanes: information, policy, and education.

Approaching an ethical consumer culture Developing an ethical consumer culture needs to start with education. We should teach the principles of environmentalfriendliness and sustainability to children in schools. And they should be taught that as consumers they have power in society, which could be used for positive change. If environmental concern can be instilled early, children will seek more knowledge around the concerns sooner, will form personal norms and morals sooner and expect these values to be represented in the products and services around them.

Brands and their marketers will be forced to connect with the consumers by making the information they seek readily available and by developing environmentally friendly products in ways that are morally acceptable.

And to get the ball rolling on this, policymakers should be writing legislation that forces companies to adopt this kind of “green” consciousness in everything they do.

Consumerism is the shovel with which we dug this deep dark hole but it has the potential to be the rope by which we climb out of it. What if we all suddenly turned around, wallets held high, and refused to buy anything that seemed to us to be, even in the slightest of ways, unsustainable, detrimental or unethical?

Understanding what drives green consumers

This same understanding can be applied to tackling other detrimental consumption behaviours.

Consumer culture and the environment Close to 2 billion people make up the world’s consumer class. This is a class that wants everything. It eats highly processed foods, desires flashier cars and bigger houses, and runs up higher levels of debt. It demands more and so production skyrockets. This undermines the natural system: devastating water supplies, natural resources and ecosystems. It also makes it harder for the poor to survive.

To develop a roadmap towards such a culture, we wanted to know why South Africans bought “green” products when they did. We wanted to know which of the factors in the theory of consumption values was the most powerful: knowledge-seeking, moral obligation, or social pressure.

So we asked South African adults about their purchasing habits and what they believed to be the primary factor behind their ethical consumption decisions. We looked for those people who had previously

December 2018 /January 2019 | AFRICAN LEADERSHIP | 17

Hamieda Parker is an Associate Professor at the UCT Graduate School of Business.

She lectures the Operations Management core course and the Global Supply Chain Management elective course on the MBA programme. This article is based on a paper co-authored with Thiam Marais, an MBA student at the GSB. The paper is titled, “A study of the factors influencing the purchase of environmentally friendly products.” It was presented at the 8th Global Innovation and Knowledge Academy Conference held in Valencia, Spain in June 2018.

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LEADERSHIP

Dr. Ifeanyi Okowa

TIMELESS LESSONS IN LEADERSHIP & GOOD GOVERNANCE

Governor Ifeanyi Okowa of Delta State, in the South-Southern region of Nigeria is on a mission to transform the state and reassure indigenes of the true essence of governance. With his exemplary contributions to the socio-economic development of Delta State and by extension, Nigeria, he has displayed commendable leadership skills. In this exclusive interview with African Leadership Magazine, Governor Okowa tells our team more about his vision for Delta State. Excerpts: The Nigerian government under the Saving One Million Lives Programme, adjudged Delta the best on health insurance coverage; tell us more about this programme and how you were able to attain this feat?

The Delta State Contributory Health Scheme was conceptualized as the fulcrum of the Government Healthcare Policy towards achieving Universal Health Coverage in Delta State.

the programme, a Baseline Assessment Survey was conducted to determine key household demography and health seeking behaviour of Deltans to guide planning for the health insurance coverage.

The survey also determined the current household spending on health, health insurance coverage needs and willingness to pay for health insurance in Delta State as well as the proportion of Delta State residents in the lowest socio-economic quintiles to guide decisions on subsidy and or exemptions from payment. It also determined the availability and capacity

With the establishment of the Delta State Contributory Health Commission to drive December 2018 /January 2019 | AFRICAN LEADERSHIP | 19

of healthcare delivery facilities in Delta State to deliver proposed health insurance services and the readiness of these health facilities to deliver proposed services across all the 25 Local Government Areas in the State.

Following the survey report along with the concept template and the implementation guideline developed, the Commission commenced an elaborate Advocacy and Sensitization programme to reach out to all relevant stakeholders; accredited public and private healthcare facilities for the

LEADERSHIP scheme as well as enrolment of residents of Delta State into the scheme.

To ensure continuity from the previous administration and safeguard the healthcare service provision to pregnant women and children under 5 years a critical health indices indicator group, the Scheme commenced service on the 1st of January 2017 with the Pregnant Women and Children Under 5 Years component of the Equity Health Plan.

The Government had made a budgetary provision of 0.5% of the State Consolidated Revenue to pay the Premium for these category of people and with the cash backing of this budgetary provision, the Commission has been able to enrol and pay for healthcare services of these group on enrolees. The Scheme currently has over 76,701 Pregnant women and 117,779 Children under 5 years registered and receiving healthcare services under the Scheme.

To ensure the Cross subsidy concept in the inclusion strategy of the Scheme, the Commission engaged and commenced enrolment of the Public service component of the Formal Health Plan in August 2017. The Scheme currently has over 123,050 principal and dependent enrolees registered with access to healthcare services under the Scheme.

Enrolment of the Informal Sector groups for the Informal health Plan, the Organized Private Sector component of the Formal Health Plan and other members of the Equity Health Plan, commenced sequentially in April 2018.

A critical component of the Informal Sector Group are the 5,200 Widows selected across the State whom Government pays their Premium along with an extra N5,000 support as part of the Government Social Protection Program. The Government also geographically expanded their access by ensuring availability of viable Primary Health Service Centers in Rural communities where most of them along with the vulnerable Pregnant Women and Children Under 5years reside. Government is currently renovating, equipping and providing healthcare personnel in 110 PHCs spread across the 25 LGAs in Delta State with a plan to increase the number to 200 PHCs early next year.

Also in the Informal Sector Group are artisans who register into the Scheme under the Government Identifiable Group Taxation (IGT) Program where artisan groups collectively pay Tax to Government and get an incentive registration into the Delta State Contributory Health Scheme.

This program currently has about 4,508 Keke NAPEP/Okada Riders registered enrolees with access to healthcare services under the Scheme. Market women associations and other artisan associations have also commenced this IGT program.

The Scheme also received royal endorsements with 40 royal fathers from the Delta State Traditional Rulers Council registering into the Scheme and taking on the responsibility as ambassadors of the Scheme in their various communities.

With this, the Commission has commenced its community based registration activity where Field Registration Agents are identified and engaged in various communities across to State to register potential enrolees, collect premium payments and provide advocacy and sensitization services for the Scheme.

for me to serve as the Chairman of the PDP special convention where our presidential candidate emerged. I am pleased to hear of the very positive reviews of the electoral process. The glory first goes to God who gives life and wisdom. I also wish to thank the party leadership and all the members of the Convention Planning Committee who laboured to see that the election was, as you described it, the fairest and freest party primaries in the history of the country. Without their cooperation and understanding I would not have been able to achieve anything as Chairman.

The Commission also engaged strategic partnerships to enhance its service delivery capacity and ensure quality of service while controlling cost for sustainability of the Scheme.

Having said that, let me say that conducting a free and fair election is not rocket science. It just takes the necessary political will to get it done. If there is any lesson I learnt it is that Nigerians would do the right thing once they see sincerity and transparency in the electoral process.

The lack of internal democracy has been a major drawback of our democracy but as a party we have resolved to entrench internal democracy at all levels. Once people see that their views and choices are respected and their votes count, they would rally round the leadership of the party or whoever emerges as the winner.

My vision for the state is to make Delta the pacesetter in the federation by building a legacy for prosperity.

The Delta State Contributory Health Scheme has so far won two awards since commencement of the Scheme in 2016.

In 2017 the Scheme won the Outstanding Healthcare Programme of the Year, presented at the Nigerian Healthcare Excellence Award ceremony in recognition of the States outstanding service delivery in the field of healthcare in Nigeria and the State Supported Health Insurance Scheme.

In 2018, the Scheme won an award as the State with the Most People Covered under the State Social Health Insurance Scheme with focus on the Poor and Vulnerable population in Nigeria under the World Bank/FG – Save One Million Lives Program, presented by the Vice President of Nigeria, Professor YemiOsibanjo.

You recently conducted what has been adjudged, one of the freest and fairest party primaries in the history of the country? What were some of the lessons learned from this experience?

First of all, it was an honour and a privilege

Some analysts have maintained that Delta state has the capacity to compete with other states as the commercial nerve centre of the country, what is your government doing to actualize this vision?

My vision for the State is to make Delta the pacesetter in the federation by building a legacy of prosperity. To successfully do that, we have worked hard to move the economy from overdependence on oil.

The people of Delta are very enterprising and resourceful. We are tapping into that by introducing enterprise development programmes that will equip our people with the skills, technical knowledge and resources to become job and wealth creators and enhance the business competitiveness of the State. So far, we have trained and established over 15,000 persons in their choice enterprises covering a wide range of fields.

Also, through various interventions in the agriculture sector, farming has become attractive once again. We now have well packaged “Delta Rice” and “Delta Garri,” which are being produced by some of our YAGEPreneurs i.e. those trained under our Youth Agricultural Entrepreneurs Programme (YAGEP). Ultimately, we see agriculture becoming a major growth driver relative to oil and gas.

The Delta State Investment and Development Agency has been established for the purpose of the ease of doing business in the State. The agency is charged with the responsibility of interfacing with prospective investors and helping them navigate through all the necessary regulatory frameworks to establish their businesses. In addition, the State Government has acquired three

DECEMBER 2018 /JANUARY 2019 | AFRICAN LEADERSHIP | 20

LEADERSHIP thousand, eight hundred and fifty hectares (3,850ha) of farmland to facilitate the ease of doing agricultural business in Delta State.

The State Land Acquisition Committee is handling the documentations of the donated land.

Our efforts in this regard are yielding great dividends. The State Government is currently in partnership with several local and foreign investors notably in housing, water and agriculture. To give an example, a Memorandum of Understanding of $22 million has been signed with Mirai of Israel and Norseworthy Investment, a private firm, under a Public/Private Partnership (PPP) arrangement with the Delta State Government to embark on a multi-product Agro industrial park in AbohOgwashi. Documentation has reached advanced stage. The outcome will witness a commercial scale production of rice and allied products. There is also a development of a 3,000 hectares of land at AkwukwuIgbo for the cultivation of oil palm and the full value chain by NorseworthyAgro Allied Services Ltd. in partnership with Delta State Government. The project is already in operation on a 1,440 ha of landand has the potential of creating over 5,000 jobs.

We have promoted peace and security through consultation, collaboration and active participation of all communities as well as put in place grievance and conflict resolution mechanisms. This has promoted trust and rekindled confidence among the populace.

Businesses can only thrive under a peaceful atmosphere and the State is primed for that. The outcome of the 2017 GDP computation with Agriculture and services accounting for over 40% is a strong evidence of the impact of our interventions in infrastructure and availability of other conducive environment that promotes businesses. It’s just a matter of time. We have created over 100,000 jobs in the last three and half years through the various direct government interventions and it can only get better.

education as key priority areas. What informed your choice of focus areas?

One of the things I observed upon assumption of office is that our state of infrastructure did not match our growth aspirations. Infrastructure development not only creates employment opportunities it is one of the critical indices to attracting investment. It creates the enabling environment for businesses and companies to thrive.

Since 2015, when we came on board, we have embarked on the construction/ rehabilitation of at least 317 roads across the State. This has promoted rural-urban integration, which is essential for growth of commerce. We have also embarked on the development of other critical infrastructure such as the Multi-billion naira Asaba Storm Water Drainage projects, the ultra-modern Central Secretariat Complex and the Stephen Keshi Stadium, one of the few stadia in the country with fully covered stands. We intend to sustain the momentum in 2019.

Human capital development is a priority with our administration.

One of my first actions as Governor was the creation of the

You recently presented the 2019 Budget estimate, tagged, the “Budget of Sustainable Growth,” with infrastructure development and December 2018 /January 2019 | AFRICAN LEADERSHIP | 21

Technical and Vocational Education Board to oversee and manage our policy on technical education. Given the high level of youth unemployment, which is largely traceable to the skewed nature of the existing educational policy, we decided to focus more on skills acquisition. We believe that the average graduate should be able to create a job for himself instead of roaming the street in search of non-existent jobs.

So far, the six technical colleges in the State have been rehabilitated and are fully functional with state-of-the-art equipment. Enrolment into these colleges has not only doubled, the students are excited at the skills they are learning and the added advantage it gives them in the marketplace. We will pursue this policy with relentless vigour because we are convinced that once we equip our youths with the requisite skills they will be able to function as job and wealth creators, with all the implication this has for the growth of Micro, Small and Medium Scale Enterprises (MSMEs).

Also, under the Universal Basic Education programme, we have embarked on infrastructural renewal of several primary and secondary schools to create a better learning environment for our children. This will be sustained in 2019.

Some African Leaders have spoken to us about, their dream for a “new Africa”, where leaders do not perpetuate themselves in power. An Africa that would not need the influence of others to do what is right; do you see this becoming a reality in the near future?

That will evolve over time with increasing awareness among the electorate aided by technology, particularly social media.The quality of leadership has improved in Africa and opinions of the electorate now count. A classic example is the political developments in the change of guards in Egypt, South Africa, and lately Rwanda. Here in Nigeria the quality of leadership has also improved significantly through peer competition, learning and experience sharing.

In the past it could have been impossible to think that an incumbent president with all the powers of State could be defeated and same result accepted even in the face of reportedirregularities. The demand for accountability has become so strong in the populace and that will certainly shape the governance process going forward. However, it is utopic to think that they will be without influences as policy formulation and implementation remains a complex mix of perspectives.

LEADERSHIP

AFRICA DOESN’T NEED CHARITY, IT NEEDS GOOD LEADERSHIP By: Sam Adeyemi

by drought and conflict is helpful, most of the aid given to African countries is rather harmful. The OECD provides comprehensive statistics on the kinds and volume of aid received by the continent up until 2015.

Moyo lists the problems enhanced by aid to include corruption, civil conflict, shrinking of the middle class, and the instilling of a culture of dependency. All of these combine to make Africa unattractive to global investors.

There is an ongoing discussion on the effectiveness of foreign aid in helping the economic development of Africa.

One thing is obvious: the results are not exactly what Africa’s development partners have expected, and the reasons are not far-fetched. Dambisa Moyo, global economist and author, contends in her book Dead Aid that while foreign aid that addresses humanitarian needs caused

It has become obvious that it is politics that drives the economies of nations. Acemoglu and Robinson assert in their seminal book Why Nations Fai’ that the major difference between developed countries and developing countries is in their political evolution. Developed countries have political and economic systems that are inclusive and offer opportunities for most people to create wealth.

However, most developing economies have political and economic systems that are extractive. Those in the ruling class have a strong hold on political power, and use it to channel economic resources to benefit themselves and those close to them. Foreign aid, when channelled through such extractive systems, almost never reaches the most vulnerable in society. We need to rethink the form of aid Africa needs and the platforms for distributing or offering it.

Also, globalization is the reality of our day and age. There is increasing economic, social, technical, cultural and political interdependence between nations. People are more inter-connected now than ever before. The availability of worldwide communication systems through rapid improvements in communication technology and the internet has led to more international trade and cultural exchange. But globalization does not appear to be hastening Africa’s development. The problem is also rooted in the political structure and the leadership culture prevalent in Africa.

DECEMBER 2018 /JANUARY 2019 | AFRICAN LEADERSHIP | 22

LEADERSHIP during side talks at global events. They should also bear in mind that there has to be alignment between the sense of identity of the leader and that of the followers for leadership to work.

Incompetence in leadership in most African countries is not only the problem of people who occupy positions in government; it is a reflection of the leadership culture. We’ve had different leaders with the same results for decades.

The power distance that exists between leaders in government and citizens is also reflected in organizations and families. In such a structure, leaders don’t serve; they are served, because occupying leadership positions make leaders superior and unaccountable to the people they lead.

Africa needs leadership development systems, and it is incumbent on development partners and global leaders to understand how cultural differences affect these.

Wanted: effective leadership development systems

The problem is leadership Some years ago, I had a discussion with Donald Duke, former governor of Cross River State in Nigeria. I commended his vision for a plan to attract large numbers of tourists from around the world, impacting positively on the economy of the state and the nation. I observed that a large number of leaders in Nigeria can’t envision Nigeria as a developed nation, and talk more of mobilizing citizens to actualize the vision. He replied with an illustration: Nigeria, he said, is like an aircraft that is being flown by pilots that did not go to flying school. He added that when the plane crashes, everyone blames the pilot. The question therefore is: where are Africa’s leadership “flying schools?” How and where do Africans acquire sophistication in the leadership skills required to guide the continent into development?

The cultivation of leaders with exceptional character and skills is critical to Africa’s development. Africa’s development partners should recognize that it is too late to teach someone who occupies a high position in government how to lead

Opportunities for developing leaders have never been greater in our increasingly complex world. Diagnosing leadership development needs, especially in Africa, requires an assessment of the entire leadership culture. For example, the GLOBE project, conceived of by Robert J. House of the Wharton Business School and conducted on organizations and middle-level managers around the world, describe countries in sub-Saharan Africa as scoring high in power distance and in-group collectivism, but low in performance orientation. Leaders do whatever it takes to produce results in such a leadership culture, and they usually position themselves and their cronies above the law. Most of the citizens have leadership potential, but several factors inhibit their leadership development, such as bad governance, poverty, corruption and religious bias.

Most young people in Africa are hungry to learn and to realize their potential. They seek respected mentors and resources to help them navigate the complex life challenges they face. However, there is a dearth of institutions and curricula to help them realize such desires.

A broader view of leadership development provides insights into why some initiatives are more successful than others at generating change in individual behaviour. To have an impact, the capabilities being developed in the individual need to mesh with the leadership culture in which the leader is embedded. Most of the leadership development curriculum developed in Western countries may not particularly address individual situations, especially youth in developing parts of the world, who have little education as a foundation, and who are distracted by the struggle for survival occasioned by rampant poverty.

December 2018 /January 2019 | AFRICAN LEADERSHIP | 23

According to the GLOBE studies, emerging leaders in some developing countries approach foreigners cautiously; that’s because they’re not used to participative styles of leadership, and prefer bold, assertive styles of leadership. The notion of fear is high due to the conservativeness in the culture, and most people have not been trained to be independent thinkers that are willing to step outside their ‘boxes’ unless directed to do so by leaders. They have developed a learned state of helplessness, with the overwhelming feeling that they cannot change their circumstances. The culture is permission seeking. Unfortunately, the ruling class is not interested in granting permission for the mass of the people to be admitted into its cadre. In such a culture, the community dominates the individual, and women are hardly empowered.

Change is possible Africa’s large youth population presents a great opportunity to influence the emergence of a new generation of leaders. The reality, though, is that the elite class on the continent tends to appropriate the existing curriculum for leadership development in expensive executive education programmes in business schools, whose fees are beyond the capabilities of the major part of the population. There is a need to democratize the leadership development process in the developing world. The high rate of infusion of mobile technology could be an advantage. This will make formal and informal leadership development an inclusive process that will reach people at all levels of society.

Africa needs cultural change agents that will leverage both business and non-profit platforms to offer leadership development training to a large proportion of the population. Such agents must have experienced a change in their own mind-sets. Development partners around the globe who genuinely seek Africa’s transformation should appreciate that the extractive leadership structures in that part of the world will not allow the intellectual, material and financial resources they distribute to create any meaningful and lasting change on the continent. They should cut down on the volume of financial aid, while partnering with cultural change agents who are democratizing the development of leaders at all levels, enhancing the evolution of inclusive political and economic structures.

BUSINESS & ECONOMY

Macauley Atasie

THE NIGERIAN SME SECTOR WILL BLOOM WHEN INFRASTRUCTURE ISSUES ARE ADDRESSED In this exclusive interview with African Leadership Magazine, Macauley Atasie, Managing Director and Chief Executive Officer of Nextzon Business Services Limited, shares with us more about his organisation as well as his views regarding accessibility to funding of small and medium scale enterprises. Excerpts.

A lot of our readers, particularly the young readers, will be interested in knowing your background and some of your growing-up experiences. Kindly share with us your social and educational background.

I have a BSc. (Second Class Honours, Upper Division) degree in Microbiology and MSc. in Pharmacy, both from the University of Nigeria, Nsukka. I have also attended several courses and executive programmes at some top-rated global business schools such as Stanford

University in the United States, Cranfield University in the United Kingdom and Witts University in South Africa.

You started your career at Nigerian Breweries as an assistant manager; and today, you are the CEO of Nextzon Business Services Limited. Please, briefly take us through your career journey, and share with us some of the accomplishments you recorded along the line.

Upon leaving Nigerian Breweries Plc, I joined Accenture (then known as Anderson Consulting, a division of Arthur Anderson & Co), a global Management Consulting firm, as an Analyst. At Accenture, I led numerous projects for large, medium-sized and small Nigerian banks and participated in the turnaround for the largest ground handling company in the aviation industry. I was also involved

in developing a new strategic direction and operating plan for one of the largest softdrinks companies in Nigeria and several other medium and large sized businesses in various sectors of the economy.

I rose from Analyst to become the Head of Ventures/Payment Systems Consulting and Senior Manager, Strategy. As Head of Ventures & Payment Systems Consulting, I led such initiatives as the National Switching Project, ATM Consortium Project, and one of the first Application Services Provider Projects for small and medium-sized enterprises. I participated in supporting the setup of eTranzact and championed the reform agenda for the then ValuCard (now Unified Payments Services Limited). I led the process for setting the tone for the nation’s ePayment sector from the early 2000s. This included the postulation of the industry vision at various ePayment summits held in Nigeria,

DECEMBER 2018 /JANUARY 2019 | AFRICAN LEADERSHIP | 24

BUSINESS & ECONOMY Ghana, Kenya and South Africa.

After eleven years with Accenture, I joined HEIRS Alliance (forerunner to the very successful HEIRS Holdings Limited), as its pioneer Chief Executive Officer. At HEIRS we played the role of a holding company where we provided standards and restructured the group, spinning off some companies and seeing to the set-up of the first Nigerian bank subsidiary in Ghana, Standard Trust Bank Ghana; now a part of a large banking group. We worked under the leadership of the HEIRS Chairman to drive growth across the group that changed the group forever leading to major acquisitions.

From HEIRS, I set up NEXTZON Business Services working with my then colleagues.

NEXTZON means Next zone i.e. it is about tomorrow, which is the realm of strategy, conceptualisation and Venturing. I have been the CEO of NEXTZON for over 13 years. During this period, I have played very important roles such as the programme management of a complex process that led to the development of Nigeria’s 13-year Financial Systems Strategy (FSS2020). I led the launch of the first for-profit business incubation platform in Nigeria with funding support from the World Bank. I offered strategy development services both to leading public and private sector organisations including regulators. I also led other very transformational ICT based innovations including the use of modern technology to provide shared operating platform for micro-finance banks and linking them to mainstream branch, ATM, POS and Mobile Banking networks. Another feat achieved is the introduction of the first POS network and Agency Banking in Nigeria.

At the national level, I co-steered the group that defined Nigeria’s eGovernment strategy in 2005/6; a process that ushered in the establishment of National e-Government Strategies Limited (NeGSt).

NeGSt is a body chaired by National Information Technology Development Agency (NITDA), a sister agency to the National Communications Commission (NCC). The emergent strategy formed the basis for a lot of eGovernment transformation initiatives Nigeria has seen over the past decade.

Under my leadership, NEXTZON has supported over 400 clients across leading sectors of the economy including State Governments in Nigeria covering well over ten states, Commercial Banks, Insurance Companies, SMEs and regulatory bodies such as the Central Bank of Nigeria (CBN), National Insurance Commission (NAICOM), Securities & Exchange Commission (SEC), Nigerian Stock Exchange (NSE) etc. The company has also conducted insightful researches for companies in various sectors such as General Electric (GE), Enhancing Financial Innovation & Access (EFInA), the World Bank, World Health Organization (WHO), Nigerian Postal Service (NIPOST), Federal Ministry of Communication

Technology etc. We have also handled very complex recruitment services for the CBN, NIRSAL, MINT, banks, state governments and several other organisations.

I am currently the President of the e-Payment Providers Association of Nigeria (EPPAN), an umbrella body of all ePayments providers in the country. I have featured in notable recent events including the 2018 Digital Africa Conference and Exhibition where I was a panel member in discussing ‘Fintech Disruption: Which Way Africa’ and the Mobile West Africa Conference in 2017 on the development of Fintech. I was a major speaker at the 5th eGovernment summit 2016 deliberating on increasing IGR Efficiency and Accountability through Smart Innovations.

The concept of incubation was initiated

by NEXTZON about 13 years ago to support budding entrepreneurs in putting together a framework required to position them in order to attract the desired funding.

I was also speaker at the UNIDO organised session on quality exports from the SME sector as well as at the September breakfast session of the Nigerian American Chamber of Commerce, focusing on the same theme.

December 2018 /January 2019 | AFRICAN LEADERSHIP | 25

Finally, I recently spoke at an event of a non-denominational body of Christians in the South Eastern part of Nigeria where I talked of vision and strategic direction of the Igbo race, as being canvassed by Ohaneze Ndigbo.

What inspired you to entrepreneurship?

I like to solve unsolved problems innovatively. I am also a trader at heart.

I like to play in uncharted terrain. I do not see obstacles and usually believe the glass is half full vs half empty. I connect the dots very easily. These make me a natural entrepreneur. Even while in the employ of Accenture and HEIRS, I operated entrepreneurially. I convinced the Accenture office in Nigeria to develop some ventures and e-Businesses. We supported the establishment of Interswitch, ATM Consortium, eTranzact and an Application service provider under my leadership of the ventures business unit.

While in HEIRS we set up a few companies which helped to shape the direction of the Nigerian economy. They are: Global Payments Services – which developed the first education portal in Nigeria funded by the erstwhile Standard Trust Bank Plc now a part of UBA Plc; eXL Services - which was a fourth-party logistics company and is still active in the logistics sector today; NeGST (Nigeria e-Government Strategies); a subsidiary of Nigeria Information Technology Agency NITDA, which in 2006 designed the nation’s master plan for rollout of e-Government infrastructure.

At NEXTZON, we have two core strategic business units namely Management Consulting and Ventures Consulting.

Ventures Consulting provides professional services in the enterprise building space or entrepreneurship support service – again living my life of entrepreneurship. Even in our Management Consulting SBU, we provide entrepreneurship support services to SMEs. So, it is my life to build new things. I am not satisfied with the concept of grass is greener in the other pasture. I love to make green grasses. I love to innovate and create.

I believe this is one sure way to make the world a better place to be, making new and better things more cost effectively.

Your company is committed to assisting Nigerian entrepreneurs to access new business opportunities as well as expand their frontiers, in both the financial and non-financial sectors. Kindly share with us some of your company’s products and services.

NEXTZON is a strategy consulting firm with strong conceptual and problem-solving abilities that are deployed in solving client problems around an array of interrelated offerings served across entrepreneurial,

BUSINESS & ECONOMY SME, Private and the Public sectors. We employ an on-demand business model that combines the subject-matter expertise of our engagement teams with the project management skills and oversight of our Practice Leaders.

Our services include Strategy Development, Recruitment, Project Management, IGR Expansion, Asset Mapping, Customer & Market Research, E-Business, Performance Management, Corporate Governance Design & Audit, Technology Conceptualization & Development, Process Engineering & Automation and Transaction Advisory services. Our SME solutions include SME Clustering Services; Nextzon SME Clinic; SME Low Cost digital tools; SME Web-shop Platform; Off-taker services (export & local) and Institutional support services.

We also have a suite of automation projects we offer either alone or with Fintech players such as Automated Governance assessment tool, IGR control panel and auto transcript services.

It is no longer news that the bigger problem for Nigerian startups and aspiring entrepreneurs is access to funding. Lack of access to bank loan is worsened by high interest rates, which at present hovers between 25 and 30 percent in some banks.

In spite of this, there are reports of a possible hike in interest rates in response to anticipated higher inflation ahead of the 2019 general election. As a management consultant, what are your thoughts on this?

It is important to note here that the bank (perhaps particularly so in Nigeria), is not the right source to access seed capital for a start-ups or aspiring entrepreneur. It is simply not rational to start a business with a double-digit interest rate.

This will divert the focus and energies of the entrepreneur to the point that he is concerned about meeting obligations as they mature, to the detriment of building the concept. What a startups idea needs is nurturing and ‘patient capital’, until it is able to build a product, create market acceptance, grow customer base, generate steady income and ultimately, build a business. A bank by its loan disbursement structure must leverage on some critical information, typically a business’ track record, in order to guarantee the safe returns of its funds. This is what a start-up does not have i.e. three to five- year annual reports, collateral etc.

Hence the startup or aspiring entrepreneur should be on the look-

out for venture capital or private equity investors either from existing institutions or close family and acquaintances with deep pockets. The passionate entrepreneur needs to be willing to make certain concessions to see to the birth of her initiatives. Giving up some ownership of your business in equity should not hurt.

This can always be bought back as the business matures with sufficient cash flows.

The concept of incubation was initiated by NEXTZON about 13 years ago to support budding entrepreneurs in putting together a framework required to position them in order to attract the desired funding.

The services we rendered included business planning documentation, process documentation, recruitment services, structures and governance frameworks and providing other services that are affordable on a shared basis. In this dimension we obtained a World Bank grant to support us in operating the first-for-profit business incubator in Nigeria.

Our incubator supported over 30 ventures where we provided fund raising support, governance support and early stage low cost (via shared services) support which gave confidence to the angel and other classes of investors. We earned equity awards in most of the ventures as they lacked the capacity to pay us any meaningful fees. We raised this type of venture capital by deploying profits from our very successful Management Consulting business. In a nutshell, we provided support to start-ups via our sweat and angel funds raised because we gave them comfort that the entrepreneurs will be well governed and run professionally, increasing the chances of success of these startups above average rates.

Recently, you were quoted to have that clustering/ grouping would help small and medium enterprises (SMEs) to create

standard as well as attract funding for the sector. Please shed more light on this and what you think is required to increase access to funding for start-ups.

The challenges businesses face in Nigeria irrespective of their size border around infrastructure deficit leading to a high cost of production. If infrastructure issues were addressed and our products standardized to meet global market standards, it will upscale the SME sector. The ability to successively sell in the export market will have multiplier effects not only for the sector but the country as a whole. A key problem is that our people have very low purchasing power and so cannot procure good quality products, because it costs money to provide quality products. So, selling in the export market presents one great avenue for growing the Nigerian economy out of the perennial poverty we have found ourselves in.

The truth is that we cannot address the infrastructure and other institutional issues across the nation all at once. So, quarantining (via clustering) some locations to provide excellent infrastructure appears like an excellent strategy to enable us focus our energies to successfully serve he export market. The concept of clustering is set to address two key issues bedevilling the success of Nigerian businesses namely poor economy and poor-quality products that have led to the aversion for made in Nigeria goods. China had similar issues decades ago. It however became the second largest economy it is today by positioning itself as the world’s factory, leveraging its cheap labour. China also established several clusters where they could cost effectively and excellently produce world class goods in chosen areas and for chosen markets.

Every state in Nigeria is abundantly blessed with natural resources and agricultural produce. The onus is to identify a few agricultural produce that Nigeria has global comparative advantage in and engage her primary asset - cheap labour.

Once these are in place, the key infrastructure bottlenecks can be addressed in the identified areas and best practice rules put in place to set up clusters or industrial zones that cater for the requirements in the entire value chain production processes. Increased scale of production from these clusters will provide access to foreign markets in the desirable quantities and enable our SMEs earn the much-desired foreign exchange. A key success factor would be identifying business areas where the nation can produce at better cost than competing nations. With this, investors will be willing to put down the funds required for the clusters to be established.

Of course, this requires a lot of modelling and focused execution.

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ECONOMY

AFRICAN VALUES ABHORS CORRUPTION –HON. SOKONTE DAVIES

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ECONOMY Our findings have shown that for most countries, income from port operations represent an enormous revenue line, the sort of which funds significant capital projects and social security systems. Singapore’s maritime industry, as an example, contributes about 7 percent to the country’s $300 billion Gross Domestic Product (GDP).

But, Nigeria presents an entirely different scenario, until the appointment of a new set of management for the Nigerian Ports Authority, NPA, in 2016. The appointment of the management, which had Nigerians of unimpeachable character, including Honorable Sokonte Davies, Ph.D., who was appointed the Executive Director, Marine & Operations, was hailed

by Nigerians at home and in Diaspora.

Dr. Davies, a

renowned policy expert, an economist has continued to contribute towards positioning the NPA as a first-rate agency in Nigeria and Africa at large.

Prior to the appointment of the new leadership, successive administrations in Nigeria treated the NPA as a cash-cow, milking revenue that accrues to the agency and sharing lucrative port contracts to their cronies as a reward for political loyalty and support. Today, Dr. Davies has contributed towards plugging leakages and fighting corruption in the system.

Before his appointment, Dr. Davies served as a member of Nigeria’s House of Representatives and attracted a number of developments to projects to his constituency, Degema Bonny constituency in Rivers state South-South Nigeria. He served in Nigeria’s House of Representatives for 8 years and stood out as one of the few members who stood against corruption in the green chambers. He engaged people of his constituency and beyond through a process called “replacement’ and he had oftentimes questioned the rationale behind the Federal Character as for him it has done more harm than good. It has led to ethnic profiling, and had destroyed the common nature of our people and eroded our common identity as one Nation.

In an interview with our correspondent in Lagos, Nigeria, Dr. Davies opined that Africa as a continent has greatly improved, maintaining, that the continent has developed from a primitive to a modern society. He believes that this development has led to the intake of a lot of strange values that has almost altered our values handed down by nature.

“Corruption is a failure of character’ he says, and the prevalence of many failed character in public and private institutions are factors that have contributed to the proliferation of corruption and its tendencies in Africa.

Dr. Sokonte Davies berated parents for leaving character molding of the child and ward in the hands of schools and teachers.

For him, the bulk of character molding and teaching should stem from the parents who have a God’s given duty and responsibility to train up their children. The age of 1-7 are formative years and are crucial to the development of the child Dr. Davies says.

He applauded the genuine efforts of the Nigerian Government led

by President Muhammadu Buhari in the fight against corruption in Nigeria and supports all genuine efforts

by Governments within the continent and beyond to tackle this common enemy called corruption and finally nip it in the bud.

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HEALTH

DR. ANTHONY SANDI: IN SERVICE OF GOD AND COUNTRY Health they say is wealth and Doctor Anthony Augustine Sandi has, without doubt, contributed to the growth and wellbeing of thousands of people in Sierra Leone. A Public Health Specialist, Dr. Sandi posses over twenty-two years of astute experience in the Public Health Sector and eleven years of experience in Health Planning, Policy & Management.

Dr. Sandi has left an indelible footprint in the country’s public services sector, serving as Director of Human Resource for the Ministry of Health & Sanitation.

During the period, he played a leading role in the establishment of Masters Programme in Public Health (MPH) at the School of Community Health and Clinical Sciences at Bo campus, Njala University. To his credit, the Ministry of health introduced computerized Human Resources Data Management System for

heath. He was also instrumental to the establishment of the Health Service Commission enacted by the Parliament of Sierra Leone in 2009.

He served as an advisor in the development of the Decentralization Plan for the Ministry of Health and Sanitation in 2004 and also played a leading role in developing a Training Manual for Nursing Aides in the Ministry with the aim of using them as Auxillary Nurses in District Hospitals. In addition to his professional qualifications, he has gone through several short-term professional training programmes and seminars in Ghana, Ethiopia, Burkina Faso, Uganda, Switzerland and the United States of America.

He today serves as the Deputy Minister of Health for the Republic of Liberia, helping towards the implementation of the country’s health master plan.

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HEALTH

CAN SMART PARTNERSHIPS TRANSFORM HEALTH IN AFRICA? Africa’s vision of socio-economic transformation and the consequent prosperity of its people are dependent on the continent’s ability to find immediate and lasting solutions to its healthcare challenges. Underpinning this transformation is the need for innovations that will create more resilient, effective and sustainable health systems and deliver value to patients faster and more cost-effectively.

Is Africa there yet? No. But many innovative partnerships offer a different way of approaching the challenge of health-system transformation to more effectively advance the health of Africa’s people, and deliver on Africa’s aspirations.

A virtuous cycle exists between health and economic development. Better population health is an important driver of economic progress, as healthy populations live longer, are more productive and can save more.

Economic growth, in turn, provides an enabling basis for investments in health.

Towards healthier economies There is no better time than now to chart out Africa’s health system transformation.

The continent’s economies continue to grow faster than almost any other region in the world. Furthermore, emerging innovations offer a historical opportunity to boost progress even faster. Breakthroughs in vaccine research and development – against malaria and Ebola, for example – enable healthy people to stay healthy, and save money that can be invested elsewhere.

The pharmaceutical industry has been transforming its product development, market access and pricing strategies to better meet the unique and diverse contexts of African countries and their patients’ needs. Advances in sectors such as mobile technology allow faster, more efficient and more patient-centric care without the sunk costs of massive landline infrastructure.

Such innovations can synchronize critical information in patient history, diagnostic imaging and prescription regimens, for example, to allow for more effective decision-making and access to otherwise inaccessible communities.

Great strides have been made, for example, in reducing maternal and under-five mortality around the world, by 44% and 58% respectively between 1990 and 2015; yet much more still needs to be done. How to leverage innovation and new partnership models to achieve these ambitious goals is at the heart of the discussions at the World Economic Forum on Africa in Kigali, Rwanda, in May. A new model for partnerships The push for transformation in Africa’s health systems must be propelled by broad and concerted mobilization of all sectors of society towards this common goal. This requires a new approach to partnerships, one able to effectively engage the entire health ecosystem.

This ecosystem approach brings together a

wide variety of stakeholders (governments, private sector, NGOs, multilateral agencies and the UN, international-development donors, private foundations, etc) to align in finding innovative solutions to complex healthcare challenges. This builds on past experience from developed economies and puts in place strategic enablers that allow countries to “leapfrog” health development stages that were previously unavoidable.

Partners can then align on desired outcomes, work together to apply mutually reinforcing innovations, skills and resources from all sectors to effectively redesign, finance and scale up the healthcare solutions. This approach is in contrast to more traditional public-private partnerships (PPPs) where partners delegate a particular project or activity to a public or private organization.

One recent example of the ecosystem approach to health-system transformation is the new Every Woman Every Child (EWEC) Kenya private-sector health partnership. Launched at the United Nations General Assembly in September 2015, this is focused on the most challenging healthsystem bottlenecks in six counties in Kenya.

These include: improving access, utilization and quality of integrated reproductive, maternal, new-born, child and adolescent health

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HEALTH technical expertise through UN agencies and NGOs. It also leverages the private sector’s capabilities, skills and resources.

Time to invest in reproductive health Adolescents make up 24% of Kenya’s population and this demographic bulge has huge implications for the country’s health and development, and future. Currently, 18% of adolescent girls in Kenya give birth or become pregnant before they turn 20. Kenya is among the 10 most heavily challenged countries for pregnant women; between 6,000 and 8,000 women die every year during childbirth, many of them adolescents.

A new project, being announced at the World Economic Forum on Africa, involves Merck Sharp & Dohme (MSD), through its MSD for Mothers initiative, investing$1.5 million towards a combined effort by JHPEIGO and the Kenya Red Cross to explore and document innovative approaches to adolescent and youth sexual and reproductive healthcare (AYSRH) in Mandera and Migori, two of the six counties targeted in the partnership. The project will also inform the national rollout of Kenya’s AYSRH policy.

The project aims to increase the capacity of Mandera and Migori county governments to sustainably provide sexual and reproductive health services for adolescents and young people through public and private sector healthcare providers. It also aims to increase access to and demand for contraceptive services among young people in the two counties; and increase community acceptance and support for young people accessing sexual and reproductive health information and services.

The Forum’s leapfrogging initiative has been a key enabler of the partnership’s effort, helping to identify the best-suited innovations, mobilize the required resources from public and private stakeholders, and effectively set up such partnerships. The aim is for the partnership to be a best-in-class example of how to design and implement comprehensive leapfrogging programmes in health, and be replicated in all 47 of Kenya’s counties, and maybe even the entire African continent.

Image: The Economist (RMNCAH) and HIV services generating community demand for RMNCAH and HIV services institutional capacity-building at county and national level strengthening of monitoring and evaluation systems.

The heart of the EWEC partnership is a collective effort to move beyond individual action by companies in order to have an impact on low-resource settings with populations in dire need of better, more accessible healthcare. It combines strong political leadership, financing through multilateral agencies such as the World Bank’s Global Financing Facility and

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MSD’s investment comes eight months after the launch of the partnership. The experience demonstrates how catalytic an ecosystem approach of partnerships can be in mobilizing collective action and investment for health-system transformation for a noble cause with defined purpose. Women, children and adolescents, after all, are the future of Kenya, the African continent and the world. The time is now for moving from commitment to action.

TECHNOVATION

WHY AFRICA’S DIGITAL REVOLUTION WILL BE POWERED

BY PARTNERSHIPS By: Tony Blair

The intellectual genesis of the digital revolution was collaboration; people working together to pioneer technological breakthroughs that have allowed them to nurture their own imagination and ally creatively with others.

Foremost elements came from a combination of public and private, humanities and hard science, amateurs and academics; different elements of society seeking to tackle the same issues, and in the process creating unprecedented access to ideas and knowledge and unparalleled potential for innovation.

This same spirit of co-operation now raises the possibility of star voyages and multi-planetary existence. Closer to home, it offers something simpler but just as profound: a chance for the developing world to leap forward.

Mobile money This is happening with mobile technology.

Right across the world we have adopted, then adapted, this technology so it is so much more than just a communications device. It is almost certainly going to be the world’s first universal tech product. In

sub-Saharan Africa, mobile growth is so strong that building landlines is no longer necessary. With one in five accounts also connected to mobile money – half of Kenya’s GDP is handled through it – it is helping to break down conventional models of banking, and keep cash out of the hands of militants, conmen and the corrupt.

Where access to banking is low, mobile technology has revolutionized local commerce. But African countries also have the possibility to use the latest technology in developing financial sectors more broadly.

Take blockchain. Central banks are looking at distributed ledgers and central-bankissued digital currencies in the belief that records can be held securely without any central authority. Added to this is the issue of trust: it’s simple to create a new addition to the chain, but impossible to counterfeit.

A leap forward for developing countries Beyond cryptocurrency, it also has potential in areas such as issuing

passports, collecting tax and collating electoral roles. And the point for developing countries is: in building up new sectors and systems, they can use latest innovations, partnering with tech companies and Western nations, rather than having to start from the bottom up.

Rwanda has already started down this path: 4G was launched two years ago through a joint venture. The country has now partnered with Carnegie Mellon University to set up a campus to teach technical degrees. And along with international architects and universities, a new project will see the world’s first drone port be built in Kigali, with the country planning to fly drones to distribute medicines and urgent medical supplies to remote areas, overcoming the infrastructure gaps that have held back development.

The country is also building schools that focus on computer programming. One example is the Gashora Girls Academy, which teaches coding and empowers young women to take up tech roles after graduation. Code clubs are also being formed across schools in East Africa, which

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TECHNOVATION

increased exponentially. Rwanda recently completed East Africa’s largest solar power plant, adding 6% to their grid. Guinea installed thousands of solar-powered street lights, while Liberia’s Mount Coffee Hydro plant is set to quadruple their energy capacity next year.

Second, to encourage this type of innovation, as well as ensure that collective entrepreneurship can happen, we also need to continue to work with African nations to promote good governance, ensuring there is strong rule of law and systems in place so that governments can change power plans to power plants. might someday have the same impact as the Homebrew Computer Club had in the US. Together with regional partners Uganda and Kenya, Rwanda has established tech accelerators – the “Silicon Savannah”. In West Africa, apps are also helping keep academic records in Nigeria, while new academies in Sierra Leone are having performance data analysed by Oxford University.

Africa in the driving seat These are promising beginnings. But capitalizing on the potential of technology to improve lives and prospects across the continent requires a new way of working together.

After my time as Britain’s prime minister, I set up the Africa Governance Initiative in the belief that the old way of doing development, where the rich world gives and the poor world passively receives, is out of date. African countries must be in the driving seat of their own development, setting the priorities and making the

decisions. And what the West should be doing is making sure our expertise – technology firms, investors, as well as aid and development – is available, for any developing government that wants it.

First and foremost, this is needed in helping nations develop their basic technological infrastructure.

In the West, this is about servers and data; web traffic will drop significantly if a site takes longer than two seconds to load. But for many in Africa, it’s simply about having a power supply. Only one in four Africans currently has access to electricity. And all of the presidents I work with name access to electricity as a top priority.

From power plans to power plants This is extraordinary when you consider that by 1940, nearly 100% of US urban homes had electricity. Again technology offers solutions. Even in an era of cheap oil, renewable energy continues to expand rapidly; the price of solar is 1/150th its level in the 1970s – and the amount installed has

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Third, at a time when populists from both left and right ride public anger in the West, we should not lose sight of the fact that success in the modern age requires being open to the world; building alliances, integrating ideas and ensuring they are pushed across the boundaries of nation or culture. Rwanda and Kenya have already capitalized on this. Along with other countries in the region, they have formed the East African Community. This unrestricted trade area has cut the cost of doing business sharply, for example by doing away with roaming tariffs.

Collaboration, openness, the circulation of knowledge, research and information helped found the digital age. They will also be the foundation for further progress today. In Africa, there is a new generation of leadership, which is pushing the continent forward, confident in its future.

This optimism has seen them embrace technology, and use it as a force for good.

This is right, because if history has taught us anything, it’s that pessimists tend to be poor guides to the future.

LEADERSHIP

Barr. Adebayo Kolawole Somefun

“THE RESULT OF HARD WORK IS MORE WORK” The Nigeria Social Insurance Trust Fund (NSITF) which was established by the Federal Government to implement the Employees Compensation Acts (ECA) 2010, has become a catalyst for enhanced workers’ productivity as it has hedged them against future eventualities. In this exclusive interview with African Leadership Magazine, Barrister Adebayo Kolawole Somefun, Managing Director/ Chief Executive of Nigeria Social Insurance Trust Fund (NSITF), tells us more about his organisation and its role in the general empowerment of Nigerians. Excerpts.

Nigeria Social Insurance Trust Fund (NSITF) transformed from the National Provident Fund (NPF) in 1993 following

the promulgation of the NSITF Decree No 73 of 1993; how has the fund fared since the transformation?

Thank you very much. In answering this question, I would take you through a brief history of the Fund. The National Provident Fund (NPF) was signed into law in 1961 and NSITF decree came into effect in 1993. The scheme catered mainly for Pension of workers in the private sector.

Then, in July 2004 to December 2010, the scheme entered what I would refer to as the Transitional period to Employees’ Compensation Scheme (ECS). The ECA was signed by both Houses of the National Assembly on the 25th November 2010 and took effect in July 2011.

The ECA makes comprehensive provisions for the payment of compensation to employees who suffer occupational disease or sustain injuries due to accident at workplace or in the course of employment, which is the main crux of the scheme.

We have been providing an open and fair system of guaranteed and adequate compensation for all employees or their dependants for any death, injury, disease or disability arising out of or in the course of employment. We also provide rehabilitation to employees with work related disabilities as provided by the Act. In doing this, we maintain a solvent compensation fund managed in the interest of the employees and employers. Also, we

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LEADERSHIP provide fair and adequate assessments for employers and when there is disaffection, we have an appeal procedure that is simple, fair, and accessible with minimal delays. All these are successfully executed through a synergy with the relevant stakeholders in preventing workplace disabilities, including enforcement of occupational safety and health standards.

tours of NSITF facilities and gone through necessary training to take back to their countries for implementation.

The ‘vision’ of NSITF is to become the foremost Social Security Institution in Africa. How is the fund under your leadership, working to actualize this vision?

Well, when we were appointed, I did a thorough study of the challenges of the Fund. And after a careful analysis, came up with a Four Point Agenda which sought to:

The Employees’ Compensation Scheme (ECS) the Fund is currently implementing makes provision to cover employment injury, which is one of the nine (9) contingencies of ILO Social Security (minimum standards) Convention 1952 (No 102).

As Manging Director/Chief Executive, my Management took steps to automate its operations by deploying a digital software, Electronic Contribution Collection, Compliance and Claims (EC4), a portal with key features such as Employer/Employee Enrolment, Payments, Integration, Claims Management, Business Intelligence and Insights, Compliance, Notification etc.

The gains and benefits of this deployment include reduction of Employers registration from an average of 2 days to 5 minutes, instant claims notification and upload of supporting documents, instant medical vetting information for Claims and Compensations and prompt payment of claims and Compensation. All these have further reduced the timelines for Claims and Compensation to just 14 days upon submission of all necessary documents, and boosted prompt rehabilitation of employees with work related disabilities.

To be ahead in our game, we have various interactive fora with relevant stakeholders on the ECS to ensure that the aims and objectives of the Scheme are met. Such stakeholders include the Nigeria Employers Consultative Association (NECA) Federation of Construction Industries (FOCI), the Trade Unions and many others. We have also implemented programmes on the prevention of occupational accidents and hazards and the promotion of occupational safety and health at the work place.

The Fund has further put in motion machinery to ensure our Social Security services mandate is extended to all citizens of Nigeria to involve unemployed, the aged, child benefit, maternity etc., by sponsoring a bill in collaboration with the Federal Ministry of Labour and Employment which is currently before the National Assembly.

It will interest you to know that many African Countries are already clamouring to come over and understudy the Scheme run by the Fund. So far, the Gambia, Sierra Leone and Liberia have already undertaken

You are reputed to be a reform minded Chief Executive, owing largely to some of the major reforms that you have introduced, can you share some of the successes recorded thus far?

Consolidate the achievements of the previous administrations and improving on the existing system

A total of 5,769 staff have been trained nationwide since we resumed duties and induction was carried out for 1846 staff employed between 2013 and 2018.

Raise the contribution base to effectively meet our statutory responsibilities.

Rebrand NSITF through aggressive publicity campaign to improve acceptance Motivate staff through improved welfare provisions Thus far, we recorded a 76% increase in

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Employers Record on Database (18,300 to 92,804).

As we speak, the Fund had provided fortytwo artificial limbs for employees who lost their limbs in the line of duty. Of the 42, many have already been fitted and moved on with their lives and the exercise is still on-going. This we did after only 18 months in office. This is certainly an improvement from the 12 artificial limbs the Fund provided between 2011 and 2016, and many beneficiaries have been testifying to the Fund’s responsiveness in this regard.

We are constantly conscious of the fact that the Employees’ Compensation Scheme is a very unique scheme that puts smiles on the faces of people in pain and brings hope to the hopeless. Between January 2017 and June 2018, the Fund has paid N835, 918, 868. 62 to beneficiaries as claims and compensation. These include the following: Health Medical Refund N202.9 Million

–

Death Benefit – N261. Million Disability Benefit N74 Million

-

Loss of Productivity for employers -N8 Million (amongst others).

This is to say that those who have benefited from this special scheme run by the Fund include 298 injured employees placed on monthly or periodic payment. Those on periodic payments are employees still in their productive years of 55 and below who are no longer functioning effectively because of workplace/related injuries.

Twenty (20) persons above the age of 55 years have been paid lump sums on a onceoff basis.

In order to cushion the burden on families of deceased employees who died in the course of work, the Fund has paid forty – one (41) lump sums for accidents/diseases resulting in death of the employees, and currently pays 226 families monthly benefits, one of which receives more than N1.5 Million monthly.

It is under this current administration that the procurement operation saw a complete overhaul; Inter-governmental relationship between the Fund and other agencies such as the Bureau of Public Procurement (BPP) has been solidified and the implementation of Public Procurement Guidelines to promote transparency of procurement operations is in place. We also succeeded through our collaboration with BPP to ensure that the NSITF Compliance Certificate is compulsory for bidding process in all Government Agencies, Ministries and Parastatals.

Application for legal fiat for legal officers (Entitlement to practice as Barrister and Solicitors) Order 2018, was approved by the

LEADERSHIP Attorney General of the Federation and Minister of Justice. Accordingly, approval was granted for 22 Legal Officers.

The new software Electronic Contribution, Compensation, Collections and Claims (EC4) was introduced to galvanise enforcement, compliance and claims activities as well as the overall operations of the Fund. Today, NSITF Compliance Certificate can be uploaded daily on NSITF website to allow companies and agencies confirm its authenticity. We are presently working on ensuring it can be printed online.

I must mention that the staff who are the key drivers of the Employees Compensation Scheme (ECS) were not left out in the reform process. A total of 5,769 staff have been trained nationwide since we resumed duties and induction was carried out for 1846 staff employed between 2013 and 2018. We also provided vital working tools for all Regional and Branch offices of the Fund, revamping them to ensure that enforcement activities are intensified.

These are just some of the reforms carried out since we assumed duties in May, 2017.

While the fund has attracted substantial enrolment, findings have also shown that there are still a significant number, yet to be captured, what is the fund doing to

attract more enrolment from workers?

We have recently been engaged in aggressive publicity and like you rightly said, we are becoming more visible. It is to raise the level of people’s awareness that we are participating in many stakeholders’ fora these days. We have recently participated in trade fairs in Abuja, Lagos, Kano, and wherever we get such an opportunity, and the acceptance of the scheme has been tremendous and encouraging. At the different fora, like I said before, testimonies from beneficiaries told the story even before we did. They testified to the Fund’s effectiveness and efficiency in meeting its mandate.

I would, at this point, like to commend staff of the Fund, whom more than anything else, are the biggest ambassadors of the NSITF. They have carried the mission and core values of the Fund in their interactions with the public. Furthermore I cannot forget the purposeful, aggressive enforcement officers and target driven Branch Managers of the Fund. Their efficiency and effectiveness have made our work a lot easier. I can assure you that

very soon, NSITF will become a household name. We are working on bigger and more challenging things. Though we are not yet where we would have loved to be, but we will get there.

Being conferred with the Georgia

Congressional Commendation Award by the Legislative Black Caucus of the Georgia General Assembly, USA means more exposure and responsibility. How do you intend to handle this task?

I am grateful for this recognition, it means NSITF is not just being recognised nationally but also internationally. I will not take anything for granted, to whom much is given, much is expected. “The result of hard work is more work”. We will not rest on our oars, this means we will continue striving to uphold the mandate of implementing the Employers Compensation Scheme (ECS) as enshrined in the Employees Compensation Act of 2010.

We will not renegade on the commitment to provide social security for the injured employee and we will continue to play the part of family trustee for the dependants left behind by the deceased employee.

Generally, the Fund will remain committed to ensuring Occupational Safety and Health.

Remember, our goal is to put smiles on

the faces of those in pain; it is work for humanity and we will continue to engage our stakeholders to make it work and of course I always rely on the GOD FACTOR, without Him I can do nothing, but with Him all things are possible.

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BUSINESS & ECONOMY

MARK MARVEY

Profile in Legal Excellence Diplomat, Pro-democracy and human rights advocate, lawyer, author, community organizer and Pan-Africanist

Mark Marvey is a Law and Policy Advisor with many years of experience in addressing risks of weak laws on forest conversion in Liberia. He’s an international Visitor Leadership fellow; a Good will Ambassador of the State of Arkansas, United States of America and a Transitional Justice fellow; who is also a successful trial Lawyer and Senior Associate at the Heritage Partners & Associates Inc. He holds an LLM from Loyola University Chicago, in Rule of law for Development, with emphasis in Investment, and an MPA in Public Sector Management from the Cuttington Graduate School. He has over 13 years of experience working as a grass-root democracy promoter and human rights advocate; he’s also worked as a consultant in several capacities including the World Bank, the United Nations Development Program-UNDP and the United Nations Fund for Population Activities-UNFPA etc. He is a founding member and the former Head of Programs of NAYMOTE-Partners for Democratic Development, the lead local institution championing participatory democracy in Liberia since 2001. From 2006-2009, he lended his support to improving economic governance as a member of

the Governance Economic Management Assistance Program (GEMAP), He’s also availed himself to support the Government of Liberia’s post conflict public sector reforms by serving on number of Presidential task Forces including the County Development Assessment Task Force; He contributed immensely to the setting up of the Independent National Commission on Human Rights of Liberia; He is the drafter of the national Youth Bill, which has already been passed by the lower house of the Liberian Legislature.

Mark’s work has also transcended Liberia to include addressing negative cultural practices of Trokoceed-child for debt practice, in the Volta Region of Ghana, Widowhood rites and rights in Zaria, Kaduna State, Nigeria and the illicit and improper alluvia mining in the midst of people in Koidu, Sierra Leone.

Mr. Marvey is a community organizer.

He has worked to bring the voices of marginalized people to the decision making table and defends the rights of forest communities and indigenous businesses. He’s the author of the book: “All Nations Are Equal At Least on Paper”.

He is also reputed for authoring a number

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of other interesting articles and papers including “The Debacle Of A Few Greedy Men: A Mishap of the Liberian Polity 2011; As If Hope Were Enough-2009; When Going Forward Demands Looking Back: Liberia & Memorialization, 2009; Breaking with the Past- The Race Against Impunity-2008; Lest we forget whence we’ve come -2008; Staying the course, against the odds-the search for peace and accountability in Liberia, 2008; “Repairing the Damage or Igniting the Imbalance?-2007; etc.

He is a co-author of a recent Joint World bank and GOL study on Rebuilding capabilities in Public sectors of Post Conflict Societies, as well as the Regulatory Assessment Service in Trade and Investments (RASTI) report.

Mark’s new book, “All Nations Are Equal At Least on Paper”, which was launch recently, examines the impacts of Foreign Direct Investments and concessions in Liberia.

Currently, he is contributing to a law and policy review seeking to facilitate REDD+ law and policy reforms on carbon credits and carbon rights.

TECHNOVATION

AFRICA’S DIGITAL REVOLUTION: A LOOK AT THE TECHNOLOGIES, TRENDS AND PEOPLE DRIVING IT By: Elsie S. Kanza

We are at the dawn of a technological revolution that will change almost every part of our lives – jobs, relationships, economies, industries and entire regions. It promises to be, as Professor Klaus Schwab has written, “a transformation unlike anything humankind has experienced before”.

In no place is that more true than Africa, a continent that has yet to see all the benefits of previous industrial revolutions. Today, only 40% of Africans have a reliable energy supply, and just 20% of people on the continent have internet access.

And yet, with all of Africa’s unique resources – from its young and growing labour force to its largely untapped internal markets – this coming digital revolution offers unprecedented opportunities. From 11 to 13 May, it’s these opportunities that we’ll be exploring in Kigali with some of the region’s leading minds in business, politics and academia.

Ahead of the meeting, we’re launching a series of articles that will provide some context on the different issues being discussed.

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TECHNOVATION With one of the fastest growing youth populations in the world, the next generation of Africans will lead the way, says Mokena Makeka.

But first, they must be given the space and opportunities to do so: “Africa’s biggest challenge over the next five years will be how it reconciles the demands of its strident youth – and their take on how to shape the post-colonial continent – in the face of established and entrenched power structures,” he argues.

How, though, do we create these opportunities? Fred Swaniker, who founded the African Leadership Network, has an idea: “Good leaders do not fall from the sky. The experience of successful nations points to the centrality of strong education institutions, and particularly robust higher education systems, in deliberately training the leaders who take societies to great heights.”

Which is why African policy-makers should be worried – the system is “at breaking point,” Swaniker writes. “The current state of higher education across the continent is a real threat to the dream of an African Century,” with low enrollment rates and stretched teaching staff.

Africa’s digital and cultural revolution If steam engines, electricity and IT were what defined the previous three industrial revolutions, this latest one is powered by a whole range of exponential technologies that have the potential to change the world as we know it.

“As the continent transitions from the margins to the mainstream of the global economy, technology is playing an increasingly significant role,” says Jake Brightin a piece exploring the seven trends behind the continent’s digital future.

You may have heard of Silicon Valley, but what about its Africa counterpart, Silicon Savannah? And that’s just one of many, Bright notes.

“Across the region a Silicon Valley inspired network is developing. The research I’ve done with Aubrey Hruby highlights the existence of roughly 200 African innovation hubs, 3,500 new tech related ventures, and $1 billion in venture capital to a pan-African movement of start-up entrepreneurs.”

But while the theme of technology dominates any discussion on the digital revolution and the way it could transform Africa, we must not lose sight of its cultural aspects. As Funmi Iyanda writes, “Africa doesn’t just need a digital revolution – it needs a cultural one, too”.

Interestingly, this same digital revolution could spark a cultural renaissance: “A social pan-Africanism existed even before the digital revolution through crossborder trade, but it was often hampered

by unimaginative and rigid archaic laws,” she writes. Today, Iyanda argues, digital technologies are helping young Africans forge a sense of cultural cohesion that could lead to wider continental integration.

A people’s revolution

His bold ambition is to rethink the way Africa’s next generation of leaders are trained: “At the African Leadership University, we have designed a university system that is built not around a scarce African resource – professors with PhDs – but around a resource we have in abundance – brilliant young students.”

While exponential technologies might be the driving force behind the digital revolution, it is Africa’s most important resource – its people – who can determine the direction it will take.

Brilliant young minds is one thing Africa is not short of. Take the example of Ory Okolloh and Juliana Rotich, two Kenyan digital activists behind Ushahidi, a crisismapping tool. If Africa is to make the most

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TECHNOVATION

of the opportunities offered by this digital revolution, it needs more bold, female innovators like them, argues Bineta Diop.

As the African Union’s Special Envoy for Women, Peace and Security, and the founder of her own NGO, she has a powerful message for other women on the continent: “I would like to invite young girls and women in Africa to embrace the fields of science, technology, engineering and mathematics, to help solve the problems facing our communities. Doing so would allow our continent to shift from an exporter of raw materials into a powerhouse of manufacturing, industry and job creation.”

could create the jobs and economic growth Africa needs to thrive.

“The only way we’ll create hundreds of thousands of jobs is by placing big bets

engines of employment. Increasing rates of entrepreneurship and accelerating the rate at which ventures grow is the only realistic path to creating enough jobs for the next generation.”

Africa at a crossroads The wider message from all the contributors to the series is this: it is Africans themselves who have the power to shape their continent’s transformation.

Take trade. Africa’s largest untapped market and its biggest opportunity for progress is right on its doorstep: “In 2014 in Europe, 69% of exports were to other countries on the continent. In Asia, that figure stood at 52% and in North America at 50%. Africa had the lowest level of intra-regional trade, at just 18%,” writes Jacqueline Musiitwa. She shares three things African decision-makers must do now to unlock that potential, including building the right infrastructure and connecting more people on the continent to the internet.

Two leading African entrepreneurs are in agreement. For Ashish j. Thakkar and James I. Mwangi – both of whom sit on the United Nations Foundation’s Global Entrepreneurship Council – small and medium business owners on the continent

on small businesses. SMEs represent 78% of jobs in low-income countries and more than 90% of all new jobs created each year. These businesses are the true global DECEMBER 2018 /JANUARY 2019 | AFRICAN LEADERSHIP | 40

HEALTH

AFRICANS HAVE AN EXTREME FEAR OF BEING LABELLED AS MENTALLY ILL – DR DAYO AJIBADE

The importance of a stable mental health condition cannot be overemphasized. Mental health is one of the most neglected health conditions in the African continent and this can be attributed to ignorance and the stigmatization against individuals living with mental illness. In this exclusive interview with African Leadership Magazine, Dr Dayo Ajibade, Executive Director of Brain

and Body Foundation, elaborates on the realities of mental wellbeing in Africa. Excerpts.

What informed your decision to establish the Brain and Body Foundation?

Well, I saw all kinds of conditions that I felt were very tragic. Parents were suffering, children were suffering.

I came across some tremendous

breakthroughs in the field of mental health in the United States and I feel I have a responsibility to address these conditions. So basically, the need was out there and I have always been very interested in the brain.

In Africa, children living with autism are often undiagnosed or wrongly treated. You recently suggested a nutritional approach to deal with this

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HEALTH disorder. Kindly shed more light on this.

It’s not just a nutritional approach. It’s what I would refer to as a strengthening approach to dealing with these conditions. What we have seen is that certain parts of the body are adversely affected with autism; it’s not just the brain. We now know that the digestive system, immune system and even the detoxification system are affected. So we curate a safe approach to address those affected systems. Nutrition is one of them but we also have to remove certain things from the body in order for nutrients to work better. We use nutritional supplements to repair damages in the guts, brain and liver.

Brain and Body Foundation is committed to sensitizing the public about neurological disorders, causative factors and treatments.

How has your organisation fared in delivering its mandates?

It was a bit of a struggle at first but we have been fortunate to be on all the major TV networks in the country, showcasing what we have done and what we are doing. We are currently airing a show that introduces these issues. I would say we are not anywhere close to where we need to be.

There’s definitely a lot of room to grow – the online and social media fields still need to be worked on in order to push out more information to the public.

From your viewpoint, do you think mental health is being accurately portrayed on media platforms?

I think there’s a lot of effort being put out there. For instance, there’s an organisation called Mentally Aware Initiative (MANI) which a young man is really pushing to raise awareness on mental health. The government should also support such initiatives. In West Africa, we tend to have

high incidences of mental health conditions and of course, stigmatization is a problem.

Also, there is a cultural perception and fear of seeking mental health professionals.

People just don’t want to be associated with mental health issues. There’s still so much more to be done.

How would you describe the responses of African citizens in respect to therapies and treatments?

There’s still that extreme fear of being labelled as mentally ill. A lot of people have simply refused to seek help even when they know they need to do so. Their attitude towards treatments and therapies is far from

What we have seen is that certain parts of the body are adversely affected with autism; it’s not just the brain.

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adequate, in my opinion.

What are your top five productivity secrets?

Knowing that there is a way to help people who have lost hope, after seeing results, gives me a strong push to do more. I play squash, that helps me stay sharp. I always carry a notebook and a pen around so I can jot down my thoughts or things I need to remember. I also make sure I eat good food.

I love reading. Reading is basically a way to tap from the knowledge of others, adding to what you already know.

What advice do you have for those who see you as an inspiration and wish to invest their time and skills in your line of career?

I would say, as early as possible, seek mentors. Create networks with people and try to form alliances. You should try as much as can to be approachable. Don’t present yourself as an overly smart person because if you do, there are so many opportunities that should come your way but would not.

Always stay curious, seek to learn and be passionate about your profession. Go out of your comfort zone and gather knowledge.

I did a lot of travelling when I started this foundation to improve what we are delivering and in the process, I was able to gather vital lessons and solutions to the conditions we are dealing with right now.

You can reach Brain and Body Foundation via the following channels: Email: brainandbodycentre@gmail.com Facebook: http://www.facebook.com/ BrainandBodyFoundation/ Twitter: @brainbodycentre Instagram: https://www.instagram.com/ brainandbodyfoundation/

TRADE & INVESTMENT

GROWING TRADE IN AFRICA Ernest Amoabeng Ortsin

Developing countries need trade to assist them boost development and reduce poverty. This can be achieved through enhanced investment opportunities and the widening of the private sector base. Trade creates employment opportunities for improved livelihoods. It also strengthens economic ties between nations. For a continent like Africa, which is in dire need of development, experts recommend trade as an indispensable strategy to bring about prosperity.

In this article, Ernest Amoabeng Ortsin discusses how African countries can grow their trade.

African leaders meeting in the Rwandan capital of Kigali, in March this year, took an unprecedented bold step to launch the African Continental Free Trade Area (AfCFTA) agreement. This followed three years of negotiations in which the countries cooperated among themselves to achieve the feat in a record time. Perhaps, what worked for them is the fact that they all belong to regional economic communities (RECs) that have achieved various degrees of integration, up to the level of customs union.

Africa is uniting; Africa is integrating; more than ever before, the continent is coalescing into a solid economic bloc. And, top on the agenda of this continental invigoration is trade. Leaders of the continent have expressed their desire to overturn the low intra-continental trade of 15% into a much more acceptable level. In Europe intracontinental trade is 70%; in North America it is 54%; in Asia it is 51%; and in Latin America it is 19%.

As a matter of fact, Africa’s intra-continental trade, over the years, has been substantially outpaced by its trade with the rest of the world – often by as much as 80%. Africa’s share of global trade is just about 2% and trade among African countries accounts for just about 7% of the continent’s Gross Domestic Product (GDP). The continent’s over-reliance on commodities for extra-

regional trade has made it dangerously exposed to commodity price shocks and the major ebbs and flows of global capital markets.

There are several factors that militate against the growth and development of trade on the continent. These are basically supply-side constraints that inhibit the productive capabilities of the various sectors. According to the 2018 Doing Business publication by the World Bank, while other regions of the world have been preoccupied with more technical aspects of doing business, most Sub-Saharan African (SSA) countries are still grappling with fundamental issues such as business startup procedures and trading across borders.

Based on the World Bank’s distance to frontier (DTF) scale, which measures the gaps between an economy’s current performance vis-à-vis international best practices, most SSA economies trail behind those of other economies when it comes to ease of doing business. The situation calls for pragmatic steps to be taken to ensure that trade transactions between the SSA region and other regions of the world are improved.

With the coming on stream of the AfCFTA, it is expected that a single market of about 1.2 billion will be created. This will lead to the consolidation of a combined Gross

Domestic Product (GDP) of more than $2 trillion. The United Nations Economic Commission for Africa (UNECA) forecasts that full implementation of the AfCFTA will boost intra-African trade by 52% by the year 2022 (based on 2010 trade volumes).

However, in order for these anticipated benefits to be reaped, African countries need to address the challenges that undermine the growth and development of trade on the continent. There are some sectors that require urgent attention and three of them are discussed below: Agriculture With very few exceptions like Singapore, almost all the major economic powers of the world achieved their prosperity with agriculture as the backbone. Indeed, the Industrial Revolution (18 -19th Century) could not have been achieved without a strong agricultural base. To start with, agriculture provided food security as well as the raw materials that were needed to support manufacturing. African countries, therefore, need to take agriculture more seriously than they are doing presently.

According to the 2017 African Agriculture Status Report by the Alliance for a Green Revolution in Africa (AGRA) almost 70% of the people on the continent are involved in agriculture as small-holder farmers. In spite

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TRADE & INVESTMENT advocates for more commitment on the part of African countries towards the implementation of the 10-year Science, Technology, and Innovation Strategy for Africa (STISA-2024) adopted in 2014.

The Overseas Development Institute (ODI), on the other hand, is rather optimistic about prospects of growth in the manufacturing sector. It notes that between 2005 and 2014, manufacturing production more than doubled from $73 billion to $157 billion, growing 3.5% annually in real terms. Some specific countries including particularly showed strong annual growth: Uganda (5% over 2010-2014); Zambia (6% over 2008-2012); and Tanzania (7% in the last decade). In general, African countries need to sustain this kind of growth in order to shore up their manufacturing potentials.

Foreign Direct Investment For trade to grow in Africa there is need for increased foreign direct investment (FDI) to boost productivity. But, quite regrettably, FDI inflows into Africa dropped from $50 billion in 2016 to $42 billion in 2017, according to United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2018.

of this, the World Bank indicates that the continent’s food import bill hovers between US$30 billion and US$50 billion every year.

The Bank also predicts that the African food market will be worth US$1 trillion by 2030 up from the current US$300 billion.

The implication is that there is a huge opportunity for African countries to develop their agriculture and take advantage of the food market that already exists on the continent. In addition, a robust agricultural sector would be the bedrock for industrialization on the continent.

African countries need to recommit themselves to the Maputo decisions that adopted the Comprehensive Africa Agriculture Development Programme (CAADP) to guide development of agriculture. At the present time, the vast majority of the continent’s food growers are small-holder farmers cultivating parcels of land that are, on average, less than 2 hectares. Consequently, there is need for modernization and mechanization and investment in the agribusiness sector.

Manufacturing Value addition to African exports has been part of the trade discussion for a very long time. Experts have always contended that African countries earn low on their exports because they are mostly in their raw or semi-processed state. A typical example is

in the cocoa – chocolate industry where Ghana and Ivory Coast control more than 50% of the world supply of cocoa beans but earn only a fraction of proceeds from the chocolate industry. While the global cocoa market is worth $2.1 billion, that of the chocolate market is worth $131.7 billion and ironically, Ghana and Ivory Coast practically earn zilch on the chocolate sector.

Historically, manufacturing has been a major challenge for the continent. Excluding South Africa, the continent’s share of global manufacturing fell from 0.4% in 1980 to 0.3% in 2005. Its share of world manufactured exports also fell from 0.3% to 0.2% during the same period. In a study conducted by the African Capacity-Building Foundation in 2017, it was established that the current average African spending on research and development stands at about 0.5%. This is woefully below the 1% of GDP pledged in 1980 and again in 2005 by African countries.

According to the same report, even though two-thirds of African countries have Science, Technology, and Innovation (STI) policies and strategies, their capacity to implement them remains very low. The report contends that African countries need to build STI capacities to innovate and promote STI for development, or risk being left behind in the race toward inclusive globalization. The ACBF, consequently,

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In North Africa, inflows were down by 4%, to $13 billion. In sub-Saharan Africa, inflows declined by 28%, to $28.5 billion. This reflected in Central Africa’s decline by 22%, to $5.7 billion; West Africa’s decline by 11%, to $11.3 billion; East Africa’s decline by 3%, to $7.6 billion; and Southern Africa’s decline by 66%, to $3.8 billion.

At the country level, the gainers included Ethiopia which received $3.6 billion to become the second largest recipient behind Egypt. Morocco increased its share by 23% equaling $2.7 billion whereas Kenya increased its inflows by as much as 71%, to $672. South Africa was a big loser, falling by as much as 41% to $1.3 billion, followed

by Nigeria which also fell by 21% to $3.5 billion.

Thus, African countries need to start implementing appropriate policies that would attract FDI from their traditional investors such as United States, United Kingdom and France. Newer investors to the continent include China, India and Singapore. Multinational enterprises from these countries are among the top ten investors on the continent.

To conclude, the point has to be made that efforts to grow trade in Africa will require multi-faceted strategies. The good news is that the stable political environment in most of the countries now provides fertile opportunities for investment and growth.

The private sector is picking up, with an emerging indigenous entrepreneurial class determined to change the status quo. With the right mix of strategies and policies, addressing some of the sectors discussed in this article and more, Africa can surely find itself on the path towards growth in trade.

AFRIPRENEUR

EDUCATION AND SKILL ACQUISITION ARE ESSENTIAL FOR EVERY INDIVIDUAL – BIOLA ALABI

African Leadership Magazine International Affairs Editor, Kenneth Nkemnacho interviewed Biola Alabi, Nigerian entrepreneur, African media expert and Chief Executive Officer of Biola Alabi Media, who was recently named in the Financial Times and HERoes 100 Female Executives list for 2018. In this exclusive interview, she reveals the hurdles experienced in the industry, her reactions to criticisms and her thoughts about the participation of women in all spheres of the economy. Excerpts.

To begin with, who is Biola Alabi?

I am someone that believes that everyone has a purpose, everyone has to find their purpose, and fulfilling your purpose practically impacts the people around you, and your community. And I think that has been how I’ve lived my journey and my life – I try to make sure everything I do has a positive impact on the world and even in my own world.

From your profile, your educational background in public health, but what you have accomplished in life is outside that hemisphere. How are you able to convince people, especially the young ones that basic education is basic, but what you end up becoming is determined by your drive and dream in life?

I don’t really spend a lot of time convincing people that what you studied doesn’t have anything to do with what you do in life.

What I really try to do is spend my time encouraging people on the importance of education, and making people realise that they should invest in education. At the end of the day, it doesn’t really matter what you studied, in my opinion. The fact is that you’re DECEMBER 2018 /JANUARY 2019 | AFRICAN LEADERSHIP | 46

AFRIPRENEUR getting education, and then, in getting basic education, you’re always going to learn certain skills, and that’s what I tell young people. And some of those skills are the skills that set you up for life. So, the skill around beginning something and ending something – the skill around striving for excellence – the skill around making sure that you understand the relevance of time management – these are the basic things you learn in going to the university. These skills set you up for success in life. There is the need to get an education that will equip you with the skills you need for life. That was what my education did – that was what public health did for me. You see, some of my early works were basically marketing, but these were core competencies I acquired from studying public health.

Whatever project I embark on, the knowledge I acquired from public health forms the background of my decisionmaking process.

From my research on you, I discovered that you once worked with Sesame Workshop, probably the company that produces our own Sesame Street. To what extent has that opportunity helped you in reaching this height, and how much will it do for you in the future?

Working at Sesame Street was a defining moment for me from a career perspective.

It gave me a lot of opportunities to learn about media, television commercials and content – to learn about intellectual properties and creating it for the long run.

It’s really been a great opportunity to set me up for a career in media.

I watched a review of Lara and the Beat, one of your recent movies, by a popular Nigerian blogger. She started with an average commendation, but midway to the end, she completely brought to nothing all the efforts, skills and talents that were injected into that movie, and to be honest, I felt for you. How are you able, in the face of such disparaging criticisms to continue doing your thing, and still have the motivation to move on?

I really believe that there’s a way to give criticisms that could be useful rather than disparaging, and for the fact that you saw that the criticism was disparaging means that there seems to be a line that was crossed. I haven’t seen what you’re talking about, but for the fact you saw it as disparaging means there was a deliberate attempt not to give some credit to the job that was done. I believe anytime that a creative work is done, people are allowed to have an opinion, but that is also an opportunity to recognise that a lot of work was put into it. I don’t really get stuck on reviews especially when they get to a place of unproductivity. If I spend time thinking of what everyone says, I won’t be where I am today. For me, it’s all about staying focused and creating content that we’re proud of.

We’re proud of our movies because they’re entertaining and different. And sometimes, if you’re doing something different, you

should expect that not everyone is going to love it. We’re trying to push the boundaries of Nollywood by creating different types of Nollywood stories. Again in life, you have to take the good with the bad – I can’t always want the accolades without wanting the other feedbacks – my job is to take the good with the bad.

In your profile, resume and press releases, there is often this tint of perception on the emphasis of women taking front roles in your organisations, and this can be hugely misunderstood, especially in Nigeria, where your businesses are sited. Have you ever been accused of being a female chauvinist, or do you see yourself as one?

Nigeria is an extremely patriarchal society.

I’m not even sure that they can ever call me a female chauvinist. I don’t even believe that there’s such a thing.

If you look at the number of women that are engaged in the workplace, the number of women that continue to rise to the top, the struggle and the obstacles that women

The African woman needs to be a major contributor to the economy of Africa. You cannot have fifty per cent of your population not actively engaged in conversations that will move your continent forward. face in business every day in Nigeria, and the fact that if you and I open the newspapers today – if we count the number of pictures to know how many of them are females, you and I are going to struggle to find equality, because it may not even be five per cent of women. The media needsto help by pushing these boundaries to strike a balance or a near balance. I am nowhere near being called a female chauvinist. We just have so much work to do for women to be seen, heard and listened to in our

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workplace and government.

The business climate in Africa, especially Nigeria, can be torrential, particularly when it spins around entertainment. When I watched YouTube clips of Bukas and Joints, what came first to my mind was, ‘How is she able to financially sustain it?’ Is it a question you would like to answer?

Of course! We’ve done four seasons of Bukas and Joints, and it is sustaining itself because of its relevance in showcasing Nigerian and African foods, and people from all over the world want to be part of it.

Right now, there’s a channel in the UK called Yanga, that’s airing the programme, as well as B.I.G. In the US, it’s on an African channel – we’ve had requests from other parts of the world, and mainly, we continue to show Bukas and Joints locally, and it’s resonating with people. What that does is that it brings advertisers and sponsors, and that has been the way we sustain it.

Recently, and just a couple of days ago, you were named Financial Times/Heroes 2018 Top 100 Female Executives in the world, and before that, in 2012, you were listed amongst the 20 Youngest Power Women in Africa by Forbes, and World Economic Forum Young Global Leader. Besides these, there are other major awards that you’ve won. My question is, ‘What makes Biola Alabi thick – what gets her going in spite of the obdurate challenges and why does she poke her nose where others turn their backs on?’

I think the biggest thing is that to whom much is given, much is expected. I am extremely fortunate - I am extremely blessed, and that, I don’t take for granted.

A lot of it is time and place – anyone could have been born to my parents and have same opportunities I have, and that doesn’t mean that the ten million children that are out of school shouldn’t have a voice that should speak out for them – it doesn’t mean that the millions of Nigerians in poverty shouldn’t have opportunities. So, I think that the constant opportunities I am trying to create and interested in will help everyone for good. I am interested in everyone hearing our stories. A couple of years ago, there was a story on CNN that says Nairobi-Nigeria, and the fact that mistake could be done in recent times stipulates how people see Africa or think about Africa, and those are the things that keep me going. If you go to anywhere outside Nigeria today, especially in the western world, the types of questions people ask you about Africa will shock you – even on Google, you’ll be shocked on certain misinformed narratives they have about Africa.

Do you ever cry? If yes, what makes you cry?

Of course, I cry – I am human. Just like everyone else, I go through my own ups and downs – I go through challenges and disappointments. Disappointments make

AFRIPRENEUR people cry. And also, I think being in touch with your emotions make you cry, which makes you acknowledge that you are human. When I lose someone or something special to me, I cry. But I am always grateful because I am alive and healthy, and I have tomorrow – there’s so much to do. So, even if I do cry and show emotions, I continue to be grateful to God – that’s what makes me pick myself up.

What do you do to get better?

I’m constantly learning. I’m constantly investing in myself – through classes, through workshops, through engagements with people – I continue to ask questions, and these are the things that make you grow, as long as you never assume that you know everything. I learn from criticisms and feedbacks, which I take into forthcoming projects.

As a writer, I have been a victim of intellectual property theft, and sometimes, it is done in such a clever way that you can’t litigate. As a content creator, how are you able to protect your intellectual properties from copycats, imitators and outright ravenous wolves?

stolen by another. The issue of intellectual properties should be carefully navigated.

The answers are in creating something that can’t be easily stolen, and secondly, you need a good legal advice on how to protect your properties. There’s no substitute for very good legal advice.

You have to be very careful how you navigate the issue of intellectual properties.

Of course, we do engage lawyers whenever we feel our intellectual properties have been infringed on, but we are also mindful that there’s a lot of inspiration in the air, therefore, there’s a need not to be territorial when another show takes a resemblance of what you’re developing, just like there isn’t a big difference between American Idol and The Voice except for the turning of chairs. There isn’t a need for one person to cry wolf that their idea has been

Grooming for Greatness is one of your organisations majority on leadership mentoring. As an African, and to be specific, a Nigerian, I know how heartrending it is to mentor people at home because of perceptions and mindsets. Most young people just need money. Money they don’t even know how to invest, but squander. How do you recruit your mentees, what attitudes do you have to deal with, and what are the results so far?

Grooming for Greatness is a leadership and mentorship programme. We work with mid-level leaders and also, entrepreneurs, to help them develop their leadership abilities, and help them understand their strengths and weaknesses, and ways to tap the unrealised powers that they have. We also help them understand how important it is for their aspirations to be validated. These were the gaps I saw in the market. So, we work with young people to plug these gaps. The programme is on-going, and to be a participant, you go through thorough screening. Normally, about twelve fellows are selected from over five hundred applications. One of our fellows was recently recognised by MIT. She’s creating a blog inclined to a logistic programme – her name is Temi Giwa.

There’s also another fellow who is creating an education conversation forum. These are people that make us very proud.

Where do you see the African woman in the next ten years?

I think the African woman need to have a conversation with the African woman, and then, a conversation with the African man. It must begin with the freedom that the African woman needs to be a major contributor to the economy of Africa. The woman continues to be sidelined, and not participating in their future. You cannot have fifty per cent of your population not actively engaged in conversations that will move your continent forward.

Women must be given the opportunity to be involved in the boardrooms and in governments. Today, Nigeria is one of the most dangerous places to have children. We have one of the highest maternal mortalities – more women are dying giving birth than most places in the world. We’re losing productive people at productive ages. We need more women representations politically and industrially these landscapes need to be equitable and convenient for women. Our leaders need to take seriously these observations and make sure the women are more engaged.

And in addition, the African woman needs to get up and advocate for herself – no one except us can advocate for us.

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LEADERSHIP

GREAT LEADERS AREN’T BORN – THEY’RE MADE. AND AFRICA IS SHOWING US HOW By: Fred Swaniker

Good leaders do not fall from the sky.

The experience of successful nations, the world over, emphatically points to the centrality of strong education institutions, and particularly robust higher education systems in deliberately training the leaders who take societies to great heights. In the best of these institutions, leaders are not only imparted with the hard skills of leadership, but also socialized on value systems that make them the creators and custodians of social ideals.

The Africa Rising narrative presents the most compelling argument for the continent’s prosperity. Investments in traditional sectors are necessary to realize its promise, as is the imperative to build robust enterprises and institutions. But

the glue that cements all this together is good leadership. Therefore, there is an indisputable imperative to build a new generation of dynamic leaders with the skills to be effective and with the values to ensure the socio-economic transformation of the continent.

By 2030, a bulk of the world’s workforce will live in Africa. Already, experts project that at current rates, Africa’s population will snowball to 2.5 billion by 2050, which should translate to a demographic dividend which will feed the continent’s growth. Yet it is clear that without certain investments in policy and education, this dividend along with the benefits of hosting the world’s workforce will remain elusive.

A threat to the vision Running against the Africa Rising narrative is the continent’s soft under-belly: a frayed higher education system that is buffeted by a combination of resource constraints, limited university places, declining quality, and a growing rift between academic education and the hard skills that the labour market demands.

Africa’s imperative to invest in education raises several questions. How can we ensure that the education Africa’s burgeoning and young population receives prepares them to tackle the challenges of tomorrow’s economy? Indeed, given the continent’s resource constraints, can Africa’s higher education system provide

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LEADERSHIP system that is built not around a scarce African resource (professors with PhDs), but around a resource we have in abundance – brilliant young students. By allowing our students to teach themselves (with the help of cutting-edge technology) and then to teach each other as peers, we have removed the constraint to scale and cut costs dramatically. We have also taken an explicit approach to developing the skills that employers need in the 21st century – collaboration, communication, problem-solving, critical thinking, leadership and entrepreneurship – to prepare our graduates for the workforce of tomorrow.

Our students spend at least a year, within their degree, in work placement to supplement their theoretical education. Class assignments are framed as projects delivered for real managers in organizations as they would in the real world. Our curriculum and learning model was designed with input from employers across the continent. The idea is to break down the barriers between the lecture hall and the world outside.

quality education at scale? If not, as the evidence suggests, can Africa quickly build internationally recognized capabilities for excellence within education?

Simply put, the current state of higher education across the continent is a real threat to the dream of an African Century.

Access to university education is limited

for many. For perspective, Africa’s tertiary enrollment rate today stands at an average of 7%. The American tertiary enrollment rate is just over 72%, while China’s sits at about 30%. This means even if Africa builds 200 new Harvard-sized universities each year for the next 15 years, it still will not close its prevailing skills gaps with India, and will have barely impacted the lot of its young population. Which is poignant if you consider that 70% of the global labour force in 2050 will be African. At the same time, the workload for teaching staff is unsustainable, with lecturers having to teach classes of up to 500 students. It is a system at breaking point.

Ironically, the weaknesses of current tertiary education systems across Africa provides a framework for a solution. Any Minister of Education in Africa will tell you that, already, their government is dedicating, on average, at least 30% of the national budget to education. Even if we

To achieve scale, we’re looking to replicate this model across several sites on the continent. We are already fully operational in Mauritius at our flagship campus, the African Leadership College. We have recently received the green light from the Rwandan Higher Education Council (HEC) to set up ALU in Rwanda along with the ALU School of Business, which will offer the first pan-African MBA programme and executive education for senior African

wanted to, we cannot marshal the kind of resources to build new institutions from scratch, or expand the capacity of current institutions enough to meet present, and future, demand.

business leaders. We have an audacious ambition: to train 3 million African leaders by the year 2066, via a network of 25 campuses across Africa, each with at least 10,000 students actively enrolled.

A new model is needed.

This is but one example. We cannot claim to be the “silver bullet” that will solve all of Africa’s education and leadership challenges. Many more innovations like this need to emerge. If the long-term catalyst for the African Century is institutions that are distinctively African, then we must start with the institutions that educate the generations to come, designed to solve the problems of today but constructed to stand the test of time.

Searching for a new model

Developing tomorrow’s African leaders As I see it, the solution lies in innovation: to develop resource-efficient higher education models, with the ability to produce graduates at scale, at a faster rate than we are doing today, while maintaining world class standards.

At the African Leadership University (ALU), we have designed a university

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TECHNOVATION

AFRICA HAS THE WORLD’S OLDEST RECORD OF HUMAN TECHNOLOGICAL ACHIEVEMENT GABRIEL JOE N’DOINJE Digital technologies – including the internet, mobile phones, and all the other tools used to share information digitally – have spread rapidly. The number of internet users globally has tripled in the past decade, from 1 billion in 2005 to an estimated 3.2 billion by the end of last year. In this exclusive interview with African Leadership Magazine, Gabriel Joe N’Doinje, Managing Director of Livecom Telecom Limited, Sierra Leone, gives an in-depth discussion on the impact of technology in Africa. Excerpts.

You have a remarkable track record of leadership in major institutions. Please tell us more about your career journey and what informed your choice of sectors.

A succinct narrative of key pointers that characterized my choice of sectors could largely be attributed to the following storylines; “Leadership is an instinctive propensity characterized by self-discipline with a view to accomplish set objectives.”

My career journey hasn’t been a smooth

ride; however, tenacious heroism with an imminent perception etched it to life. What informed my choice of sectors began during the kindergarten age. As a growing up chap, my affection for technology started right from the day my mother handed me a brand new analog wrist watch. Curiosity in subsequent days drove me into dismantling the watch into separate parts, even though I didn’t fix it again. Yet, this was the first ever magic, later revealed in college years, this however, urged my interest for the world of technology and technological innovation. I entered the technical institute reading electrical and electronic engineering through the City and Guilds of London Institute to final stage (CGLI).

Thus, setting the stage for technological exploits. I further enrolled into a Microsoft certified systems engineering studies from basic to advance and final stages of earning my MCSE and MCP, just after completing my first degree with second class honors upper division in information technology. By this time, I

had gained promotion to senior engineer with my employer; the only national telecommunications company (Sierratel).

I was later promoted to an expatriate position of Technical Expert on earning my master’s degree in information technology and telecommunications technology with project management all-inclusive from the prestigious Wuhan University of Science and Technology and soon thereafter, was invited to their research institute in the people’s republic of china (WRI) – 2011. The passion for technology has taken me few places outside Sierra Leone I had imagined possible, not to mention international conventions, international business negotiating trips, technical workshops, in Europe, Asia, East & Southern Africa, and other West African nations. Yet here I am today! Making waves in my little nation, helping humanity through technological innovation.

As an expert, can you describe the impact technology has made across the African continent?

“This topic does not only illuminate the path Africa is already on, but also lights’ up trade acceleration initiatives, it richly outlines the key role that, African Regions are better interrelating across the continent and beyond,” assumed Tim Kelly, ({Lead ICT} ... policy makers seeking to maximize the transformational impact of ICTs).

Technology has changed the way information is generated and new applications around visualization have made it simpler to present its goals.

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TECHNOVATION It has, in short, bounced over as a continent and business models with mobile gadgets quickly made other varieties of leaps possible. Everyone with a phone suddenly also have, in effect, a bank account in their pocket. Africa though has the world’s oldest record of human technological achievement. During the 12th century, the astrolabic quadrant was invented in Egypt. The second largest continent is the least computerized, considerable effects on the likely success in the uptake of a new technology. How much impact has this had on the African continent in its growing years down the line? It has deepened financial services in the continent beyond measure. Technology has changed the way information is generated and new applications around visualization have made it simpler to present its goals. In this regard, technological investments require all levels of the education system on board. African countries are urged to create science parks as a growing mechanism. Competition is also important for driving down the cost of technology while increasing economic growth through science, technology and innovation.

Designing for Africa is the objective of many new technology ventures. In Africa, as in the rest of the world, information and communication technologies (ICT) are set to transform the society. Across the continent today, infrastructure development continues, this is a worthy goal being taken on by private industries. The impact of various technologies has long-term outcomes.

Kindly share with us some of your corporate social responsibilities aimed at giving back to the society.

Mobilization of teachers and colleagues with incentives on long vacation, free teaching education for secondary school students with emphasis on engineering and information technology in my district, award scholarships and grants, aids and educational material sponsorship to less privileged schools in the suburbs, partnering with some NGO donors for provision of learning materials to some universities. Helping with 10,000 Litres PVC water tanks and sanitation materials geared towards aiding healthy living, the least but important for school-going children within the immediate environment.

Effectively, change is possible industrywide collaborations, cooperation and consensus. What are your thoughts on strategic alliances as leverage for growth and profitability?

As an enterprising executive, my standpoint on possible-wide collaborations, cooperation and consent on strategic alliances as leverage for growth and profitability is an inspiring exemplary model, a watch word in achieving modern business success and at a faster rate. With this approach to business, the world is gradually moving towards establishing a

theory of value chain production. With this value chain model, production and distribution of goods and services become more efficient, less stressful and the marginal profit becomes a win-win for all.

As the Managing Director of Livecom Telecom (SL) Limited, kindly share with us your top five productivity habits.

Effective time management, collaboration (which consists of teamwork, partnership, association, cooperation and relationship), consistent, regular body exercise, weekly ocean view and air refreshment.

With the continents population tipped to double by the year 2050, there is an urgent need for governments and entrepreneurs to create more jobs. What in your own view should be the priority for leaders across the continent towards job creation?

Sustainable development; education and mechanized farming, empowerment of the people through industrialization are all essential.

You are an inspiration to many, as you

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have recorded major successes in the journey of your career. Do you have any advice to give to those looking to invest their skills and time in your line of career?

Yes, and a lot; I will attempt to give a few synopsis, gone are the days when technology was seen as a world for dropouts, it is the leading edge to presentday and revolutionizing the future and encompassing all facets of life. Nothing goes without technology, hence artificial intelligence.

How do you feel about your emergence as a recipient of the African Leadership Magazine awards?

It is mind blowing, awesome and intriguing.

To be identified amongst a population of 1.6 billion to stand on world stage and be celebrated is huge and unimaginable. It’s indeed gratifying. Like all other tenacious chivalry life, accomplishments are remarkably good apposite to the human soul, it brings a sense of fulfillment and finesse, mine been no different.

SPECIAL FOCUS

SOUTH SUDAN’S NEW PEACE AGREEMENT AND PROSPECTS FOR PEACE AND HUMAN DEVELOPMENT

By John Mukum Mbaku

Introduction On July 9, 2011, Africans from all walks of life joined the people of South Sudan to celebrate the birth of a new nation. For the diverse ethnocultural groups that make up this new country, independence marked the culmination of an extremely long and bloody struggle for them to exercise their right of selfdetermination. Nevertheless, as the new country’s diverse groups took time out to celebrate their freedom, as well as honor those who had fought to secure that freedom, they were reminded by many observers that building a nation, maintaining peaceful coexistence, and enhancing sustainable development, requires a lot of hard work and sacrifice, effective political leadership, and strong democratic institutions.

JOHN MUKUM MBAKU Attorney & Counselor at Law, Nonresident Senior Fellow at the Brookings Institution, and Brady Presidential Distinguished Professor of Economics, Weber State University (USA)

Although South Sudan started its life as an independent country with significant endowments of natural resources (including oil and gas reserves, and significant amounts of arable land) and an extremely young and vibrant population, all of which provided its citizens and government with a solid foundation for the creation of the wealth that was needed to confront poverty and improve the people’s living standards, the same country has faced what appears to be insurmountable problems, many of which have become major constraints to both political and economic development. The most important of these development obstacles is the inability of the

government to effectively manage ethnocultural diversity and provide the necessary institutional structure for the peaceful coexistence of the country’s various subcultures.

Back in 2011, scholars at Washington, D.C.’s Brookings Institution cautioned South Sudan “not to be complacent in their nation-building efforts.” They argued that while independence offered South Sudanese many opportunities for wealth creation and economic growth, as well as, nation-building and political development, it also presented the country’s diverse ethnocultural groups and the government with many challenges. In order to understand and appreciate the failure of human development in South Sudan, it is necessary to take a look, if only briefly, at some of the challenges that the country has faced since independence in 2011.

South Sudan: a country plagued with many development challenges As South Sudan prepared for independence, scholars at the Africa Growth Initiative at the Brookings Institution predicted that the most important challenge that the new country would face would be how to create a “united nation.” They went on to argue that “[h]ow South Sudan deals with harmonizing the claims of the various stakeholders and ethnic groups is the single most important determinant of whether it succeeds or fails as a

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SPECIAL FOCUS nation.” The hope was that the country’s post-independence political leaders would provide the leadership needed to bring the country’s various subcultures together and engage in the type of robust dialogue that would result in the creation of institutional arrangements that enhance peaceful coexistence, and promote entrepreneurship and the creation of the wealth that the people can use to fight poverty and improve their quality of life. Unfortunately, as the evidence has since shown, the type of transformational leadership that could have saved the country from eventually descending into ethnic-induced civil war has been missing in post-independence South Sudan. Instead, what has emerged in the country since it gained independence in 2011 has been opportunistic and self-

dealing leadership, which has failed to secure peace and security for the people and has, instead, plunged the country into civil war and forced the people to remain trapped in a perpetual state of political dysfunction and underdevelopment.

South Sudan has a lot of development challenges—a largely illiterate population; one of the highest infant mortality rates in the world; relatively poor or nonexistent access to prenatal care for pregnant women; high maternal mortality rates; lack of access to basic services, such as health care, education, clean water,

police protection, and other services that are supposed to be provided by the government; and extremely high levels of poverty. In addition, there is a total lack of basic infrastructure and other facilities (e.g., hospitals, educational facilities, electric-generating plants, and sewage disposal plants) that comprise an important part of a country’s productive capacity.

Nevertheless, the lack of these growthenhancing structures can be attributed to the absence of transformative political leadership and the failure of South Sudan to build a consensual state, one that can significantly enhance the ability of all of the country’s subcultures to coexist peacefully and participate fully and effectively in the development of the country.

Without peace, there cannot be political and economic development In a country, such as South Sudan, where the government struggles on a daily basis to survive, such a government is not likely to be concerned with public policies that advance economic and political development, including the recognition and protection of human rights. Instead, such a government would most likely devote public resources to supporting those institutions (e.g., the military and the police) that provide the incumbent government with December 2018 /January 2019 | AFRICAN LEADERSHIP | 55

the necessary coercive force to maintain its hold on power. Within such a system, scarce resources that ought to be invested in the provision of essential public services (e.g., human capital development, basic health care, clean drinking water, housing for the poor, and nutrition services for children from vulnerable groups) are usually devoted to purchasing regime security (for example, through either providing direct payments or other benefits to competitive elites and groups that have developed significant violence potential and hence, are in a position to threaten the survival of the regime). Institutions, such as the military and other agents of coercion, are most likely to be favored in public revenue allocations, as the incumbent government fights for its survival. In the process,

virtually no government effort is devoted to the transformation and/or support of the productive sector—that is, the one that creates wealth. As a consequence, both economic and political development would be stunted.

War and other forms of ethnic-induced violence are a major cause of poverty in many countries in Africa, including South Sudan. A country cannot achieve any reasonable level of human development unless it is able to create wealth. The most effective way to create the wealth that is needed for poverty alleviation and the

SPECIAL FOCUS improvement of the people’s quality of life is for the government to provide an institutional environment and a regulatory framework that encourage entrepreneurial activities and help in the development and sustaining of a viable and robust private sector. Without the latter, it is not likely that a country will be able to create wealth and promote inclusive economic growth.

A government cannot provide such an institutional environment, that is, one that enhances entrepreneurial activities and the creation of wealth, if it is preoccupied with the challenges posed by a civil war and other political violence.

In order for South Sudan to establish an economy that enhances, encourages and promotes the creation of wealth, it is absolutely necessary that it have institutions that guarantee the security of property rights, provide opportunities for free, voluntary, and mutually beneficial exchange, ensure both foreign and domestic investors that freely negotiated contracts will be enforced, and that the property and person of the individual will be granted protection by the country’s police and judicial institutions. Those who emerged to govern South Sudan when it gained independence in 2011 were supposed to provide the leadership to create and sustain such developmentenhancing institutions. Unfortunately, that never happened and this explains, if only partially, why the country remains stuck in a state of poverty and underdevelopment.

War, as South Sudan has already discovered, can kill a lot of people, many of them in their most productive years. In a report produced by the London School of Hygiene & Tropical Medicine and released in September 2018, there have been nearly “400,000 excess deaths” in South Sudan since the civil war began in 2013.

In addition, by early 2018, South Sudan’s civil war had displaced about two million people within the country and forced a further two and one half million people to flee into refugee camps in neighboring countries. Those killed, as well as those forced to flee their homes into involuntary exile, include critical human resources that could have contributed significantly to economic growth in the country, especially in the production of foodstuffs and other agricultural commodities.

Republic of Sudan now seen as part of the solution to peace in South Sudan In December 2015, a peace agreement was signed between South Sudan’s two feuding parties, leading to the formation of a unity government, with Salva Kiir (of the Sudan People’s Liberation MovementJuba (SPLM-Juba) as president and Riek Machar (of the Sudan People’s Liberation Movement-in-Opposition (SPLM-IO) as vice-president. Nevertheless, that peace agreement soon fell apart and by July 2016, fighting had broken out between Machar’s

loyalists and those of his political rival, Kiir. Shortly afterwards, Machar fled into exile, effectively abandoning his position as the country’s vice president. The violence continued as the security situation in the country worsened.

Then, on September 12, 2018, the two warring factions signed another peace agreement (“Revitalized Agreement on the Resolution of the Conflict in the Republic of South Sudan (“R-ARCSS”)), which some analysts and observers argue is different from several previous ones, all of which have failed. As stated by Professor Mahmood Mamdani, Director of the Institute of Social Research at Makerere University (Uganda) and an expert on political economy in the region, the latest agreement is not one between Kiir (a Dinka) and Machar (a Nuer) but one between the presidents of two countries with significant interests in a peaceful and prosperous South Sudan—Omar al-Bashir of Sudan and Yoweri Museveni of Uganda. Both al-Bashir and Museveni, who were quite involved in the negotiations leading to the signing of the agreement, have offered themselves as guarantors of what many observers believe could be the foundation for sustainable peace in South Sudan.

Previous peace agreements had assumed that Sudan to the north was a major threat to peace and security in South Sudan—this was based on the belief that groups and/ or subcultures within South Sudan that felt marginalized politically and economically could turn to Khartoum for assistance and through that process secure the wherewithal to destabilize the government in Juba. Hence, as argued by Professor Mamdani, “[t]o close that loophole,” it was necessary to bring Khartoum into the peace negotiations and make Sudan part of the solution. Thus, the September 12, 2018 peace agreement differs significantly from previous efforts in that Sudan is now considered a critical part of the solution to peace and security in South Sudan.

New peace agreement to introduce the dreaded “sons of the soil” citizenship scheme Unfortunately, argues Professor Mamdani, the R-ARCSS will lead to the “disenfranchisement of a large section of South Sudan’s population.” The new agreement is designed to divide South Sudan into ethnic homelands or enclaves to be occupied by its various subcultures—the

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SPECIAL FOCUS determine or dictate the principles on which the permanent constitution will be based. Instead, the Transitional Government of National Unity of the Republic of South Sudan (TGoNU), which was constituted by the present agreement, should, first secure the peace and then, conduct nationwide, free, fair, and credible elections, which will choose a new Constitutional Assembly, separate from the Transitional National Legislative Assembly (TNLA).

The elected Constitutional or Constituent Assembly (CA) would then engage the people of South Sudan in a robust process to develop the Constitutional Principles that will (1) form the foundation for the permanent constitution, as well as guide the latter’s designers; and (2) constrain the Constitutional Assembly in its constitution drafting work. Through these constitutional principles, all of South Sudan’s subcultures can make certain that the permanent constitution reflects the values that are important and dear to them. In addition, the peoples of South Sudan, through these principles, can make certain that their permanent constitution reflects provisions of international human rights instruments and other principles that form the foundation of a true democratic State.

Dinka, Nuer, Zande, and others. Hence, the R-ARCSS does not seek to establish a country called South Sudan, with a single supranational citizenship, which is defined, not by ethnicity, religion or other ascriptive traits, but by fidelity to a group of values or ideals—for example, democracy, rule of law, equality before the law, and equal opportunity for citizens, regardless of their ethnic affiliation, to engage in selfactualizing activities in any part or region of the country that they desire or choose.

As it presently stands, the R-ARCSS is expected to divide South Sudan’s existing land mass into geographic zones or homelands (most likely ethnic-based political jurisdictions) for each of the country’s subcultures. However, in a geographic area that currently houses multiple ethnocultural groups, the area will be designated as belonging to one single group, effectively introducing the “sons of the soil” phenomenon that has proved disastrous, economically, socially, and politically for other African countries, including Nigeria and Cameroon. Under the sons of the soil approach to citizenship, an ethnic group claims a specific geographic area of the country as its ancestral home—members of that group refer to

themselves as “native sons” or “sons of the soil” and engage in various activities to prevent people from other parts of the country (who are referred to as “strangers”, “outsiders”, or “settlers”) from settling amongst the native sons and participating in both economic and political markets. In multiethnic areas or regions, the so-called “native” majority will exercise monopoly power over all political, economic, and social activities, effectively disenfranchising all minority subcultures—the latter will effectively lose their “customary” or “traditional” right to the use of the land for agriculture and other activities, as well as their right to political participation, particularly at the local level. This is the type of citizenship structure that the new agreement is expected to provide for South Sudan.

The R-ARCSS sets out what it refers to as “Parameters of Permanent Constitution.”

The key to peace and security in South Sudan and hence, economic growth and development, lies not just in a well-crafted constitution, but in the process through which such a constitution is designed and adopted. Hence, this agreement, which arises essentially out of a bargain between a selected group of elites, should not

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Article 6.11 of the R-ARCSS states that “[t]he Parties agree that the Transitional National Legislature shall be transformed into a Constituent Assembly.” Given the fact that the TNLA, like other institutions created by the R-ARCSS, arises out of a bargain between various elites, it should not be the political entity charged with producing the country’s permanent constitution. The legitimacy of a constitution and the government formed under it is determined, to a great extent, by the way in which the CA came into being. If members of the CA are chosen through free, fair, and credible nation-wide elections, the outcome of its work—the constitution—is likely to be considered a legitimate instrument of governance.

Nevertheless, if the CA’s members are handpicked by the executive or, as is the case with the TNLA, by a group of elites, the constitution is not likely to be clothed with the kind of legitimacy that can promote widespread acceptance and compliance. Legitimacy of the constitution and of the constitution-making process are very important to countries, such as South Sudan, that are characterized by significant levels of ethnocultural diversity.

Relegating the constitution-making process to a group hand-picked by the country’s elites is a miscalculation that can keep the country trapped in political dysfunction for many years to come. The people must be involved and they must be allowed to lead the constitutional design and institution building processes through the selection of the CA, as well as the constitutional principles that will undergird the final and permanent constitution.

Meanwhile, the agreement has given the two guarantors, Sudan and Uganda, a

SPECIAL FOCUS special and strategic role in determining the political and economic future of South Sudan. While Uganda and its military and economic resources will support the Kiir/Dinka faction, Sudan stands ready to provide all necessary assistance to the Machar/Nuer group. What, then, becomes of the peoples of South Sudan and their yearning for self-determination? By this unusual agreement, are the leaders of South Sudan telling the world that the country is simply incapable of governing itself and hence, must place its sovereignty into the hands of a pair of caretakers? What happens to the independence that so many people secured with their lives? As argued by some experts, this agreement will divide South Sudan into “a tribally fragmented society” with decisions affecting the country and its peoples to be dictated from Khartoum and Kampala. Whose interests and values will be maximized under such a political arrangement—those of Sudan and Uganda or those of the peoples of South Sudan? Given the fact that there is not likely to emerge from this arrangement any institution capable of representing the interests of a united South Sudan polity, it is doubtful that national economic and political development, including especially poverty alleviation, will be on the agenda of any of the entities occupying political space in the fractured country.

The absence, from the September 12, 2018 peace agreement, of a process that provides the wherewithal for the construction of an all-inclusive or panSouth-Sudan dialogue, rather than one based on or centered around ethnic groups, is likely to force the country to remain trapped in political chaos and dysfunction, economic underdevelopment, and the failure to achieve peaceful coexistence.

Mobility of human capital is a key to economic and human development Human capital is very important to wealth creation and economic growth— it can impact the creation of wealth in a country through its impact on either labor productivity or on overall factor productivity. Nevertheless, our interest is not on how human capital affects wealth creation and economic growth in South Sudan. Our interest is on citizenship and how the way it is structured can have a significant impact on peaceful coexistence, poverty alleviation, and human development. What impact, for example, will the provision of ethnic-based sub-national political jurisdictions in South Sudan have on citizenship and hence, on the ability of individuals to participate fully and effectively in national development?

In South Sudan, as in other countries, once a unit of labor has trained and obtained necessary skills, it may become necessary for it to exit the location where it was trained in order to productively use the

skills that it has acquired. As stated by economists, the skilled unit of labor may have to move to where it can earn its opportunity cost. For effective utilization of South Sudan’s human resources, it is critical that these resources be allowed to move freely throughout the country. Thus, free internal migration is an important part of the effort to fully utilize human resources for development in South Sudan. But, under the new arrangement, will a Dinka engineer, for example, be able to move freely to “Nuer country” and exercise his or her right, as a citizen of South Sudan, to settle and practice his profession in that part of the country even though he or she is not considered a “native son”? What about a Nuer physician who wants to take advantage of job opportunities for medical experts in Dinka country, will he or she be welcomed in Dinka tribal lands?

Migration, even within the country, can involve significant economic and non-economic costs. Although the high costs of migration in a country such as South Sudan are likely to be cited as the reasons for the inability of many labor resources to migrate freely, there are other more important obstacles to internal migration, especially in view of the new peace agreement, which has, perhaps, unwittingly, introduced the concept of “sons of the soil” into the political economy of the country. The most important of these is the issue of citizenship—what it “involves in terms of rights, duties, immunities, privileges and forbearances for its bearers.” The new peace agreement will allow various subcultures within South Sudan to claim certain geographic areas as their ancestral lands and hence, have monopoly control of these areas. In countries, such as Nigeria and Cameroon, ethnic groups call themselves “sons of the soil” or “native sons” and make a lot of efforts to prevent people from other parts of the country from settling amongst them and participating in economic and political markets. There is no reason to believe that if the new peace agreement sets up such a system in South Sudan, the various subcultures, which are provided control over specific geographic areas of the country, will not behave similarly and discriminate against other South Sudan citizens that they consider “strangers” or “outsiders” in the lands that these “indigenous” groups consider as their ancestral lands.

What is the way forward for South Sudan?

First, the citizens of South Sudan should understand that, contrary to popular thinking, the September 12, 2018 peace accord does not resolve the country’s political stalemate. What it does, however, is to create an environment within which all the feuding parties can, if their leaders are able to muster the political will to do so, secure the peace and begin the process of reconstructing the State

through a democratic (i.e., people-driven, participatory, bottom-up, and inclusive) process. In doing so, it is very important that ethnicity is not be used as the basis to create sub-national political units (e.g., states, provinces, or counties). For, if sub-national units are ethnic-based, the outcome will invariably be “mini-ethnic nations” and the process would have failed to build a consensus, pan-South Sudan State. Ethnics in each ethnic nation will most likely pay allegiance to their group and not to a South Sudan State and in the process, will discriminate against fellow South Sudan citizens who are not considered “indigenes” or “sons of the soil” of each ethnic nation. In addition, in those ethnic nations that consist of multiple subcultures, there is likely to be a tyranny of the majority, with minorities being systematically deprived of their rights to participate in the political and economic life of their communities.

Second, South Sudanese should see the constitution as a mechanism, which they can use to codify the ideals and values that are important to them and which will help them live together peacefully as a nation—some of these ideals include, fairness, justice, respect for the rights of others, recognition and protection of human rights, and a belief that all South Sudanese, regardless of their ethnic affiliation or political/economic standing, can contribute positively to economic and political development in the country.

Thus, constitution making should involve a careful and purposeful analysis of the multifarious development and governance problems that confront the country—from the guarantee of the peaceful coexistence of all of the country’s subcultures to the creation of the wealth that can be used to deal with poverty. In other words, the constitution and its design and adoption must be recognized as a conscious and deliberate effort to deal fully and effectively with the various threats to South Sudan’s existence as an undivided nation.

Third, the peoples of South Sudan must understand the fact that because they all hail from various ethnocultural groups, the tie that binds them together is neither ethnicity nor a common linguistic or cultural heritage. Instead, what binds them together are the ideas and ideals that they voluntarily agree to and elaborate in the constitution. Some of these ideals include separation of powers, with checks and balances, including an independent judiciary, the supremacy of the law, openness and transparency in government communication, voluntary acceptance and respect of the law, a free press, and a robust and politically active civil society.

While each ethnocultural group will be allowed to maintain its culture and customs, it must do so without infringing on the ability of others to do likewise. In addition, loyalty to the ethnic group must not be allowed to trump or undermine that

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SPECIAL FOCUS to the nation.

and should be able to migrate freely and settle in any part of the country that they choose—such an approach will significantly enhance the utilization of human resources for economic growth and development. As argued by Nigerian political philosopher, Olufemi Taiwo, such an approach to citizenship will “make it possible for [citizens] to go and seek fame and fortune anywhere in the country without thinking that they are ‘aliens’ who have to go back ‘home’ at some unspecified future date.” Skilled workers and entrepreneurs will be able to migrate to those parts of

Fourth, there must be free internal migration. In every modern State, an important characteristic of citizenship is its portability—the latter involves the ability of the citizen to exit one political jurisdiction and enter another, easily establish residency there and be able to participate fully and effectively in political and economic activities. Within the new South Sudan, then, a Dinka entrepreneur should be able to exit “Dinka country” and resettle in “Nuer country,” gain residency

relatively easily and proceed to exercise his or her South Sudan citizenship in his new political jurisdiction. Unless South Sudan citizenship is fully portable, economic growth and development will be severely limited because highly skilled and trained individuals will be unable to freely migrate to where their skills are needed the most.

In fact, some communities may find it very difficult to attract teachers, health workers and other human resources that are critical to economic development from outside their own jurisdictions—trained teachers and nurses might be unwilling to migrate out of their own districts for fear that they may be treated poorly or denied access to jobs in the communities they seek to go to by indigenes or sons of the soil.

Fifth, South Sudan must make sure that any constitutional order that it establishes must not be one that grants privileges to an individual merely because that person was born at a particular place or belongs to a particular ethnic group. All South Sudanese citizens, regardless of their ethnic affiliation, as well as where they were born, should have the same citizenship rights

the country that can effectively utilize their skills and talents and in the process, promote national development. In addition, political jurisdictions throughout the country will be able to design and implement policies that attract skilled workers and entrepreneurs and provide the institutional support for them to thrive, effectively contributing to the development of their regions.

The “sons of the soil” approach will further politicize ethnicity in South Sudan, endanger nation building, and force the country to remain trapped in violent ethnic conflict and continued political dysfunction.

It is not likely that a single institution, one that does not owe its allegiance to some ethnocultural group, but to the nation as a whole, will emerge from the present agreement to represent South Sudan and its diverse groups.

Sixth, the TGoNU should conduct free, credible and fair nation-wide elections to pick a Constitutional Assembly (CA). The CA should then engage the peoples of South Sudan in dialogue and negotiation to select the constitutional principles, which will

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undergird the constitution and constrain the drafters. Once the constitutional principles are agreed upon, they can then be enshrined in an interim constitution and the CA can then proceed with drafting the country’s permanent constitution.

Finally, for South Sudan to extricate itself from its present political quagmire, it must engage in process-driven constitution making to produce a constitution that reflects the values of its relevant stakeholders. In doing so, all South Sudanese, not just the parties that have

been battling each other since 2013 (that is, the Kiir- and Machar-led factions) must engage in robust dialogue about constitutional design, the constitution, constitutionalism, and constitutional government. Such a discussion should emphasize fundamental rights—how to define, guarantee, and protect them; the structure of government—this discussion should include issues such as election laws and procedures, separation of powers, checks and balances, and federalism; citizenship and its portability; and procedures for amending the constitution.

While it is critical that South Sudan provide itself with a Bill of Rights, it is important to note that doing so is a necessary but not sufficient condition for the effective protection of these rights. Sufficiency requires that there be established a governing process that is characterized by separation of powers, with effective checks and balances, including especially an independent judiciary, a free press, and a robust civil society that is capable of checking on the exercise of government power.

TRADE & INVESTMENT

FOCAC: CHANGING THE FACE OF AFRICA-CHINA TRADE RELATIONS

For two decades or so, the relationship between African countries and China has grown, and cooperation has been increasing in various areas, including media, culture and education. While China is Africa’s largest trading partner, Africa is not China’s main trading partner and while a large number of Chinese companies invest in Africa, only few African companies invest in China.

Ahead of the 6th Forum on China-Africa Cooperation (FOCAC), which will be held in December 2015 in Durban, South Africa, this piece depicts Africa-China trade and investments patterns and explores to what extent FOCAC could enhance AfricaChina trade and investments. It includes recommendations to African governments in their negotiations with Chinese officials.

FOCAC serves as a dialogue platform between African and Chinese officials to deepen economic, political and diplomatic cooperation between China and African countries. Areas of cooperation include trade, investments, education,

development assistance, tourism, etc. While several meetings and fora are organised to foster and deepen partnerships between African countries and China, economic negotiations represent the major agenda of the FOCAC meetings. Trade, investments and aid are at the heart of the meetings between African and Chinese officials.

China’s interest in enhancing its Outward Foreign Direct Investment (OFDI) and foreign trade meets Africa’s willingness to ‘look east’ and to diversify its global partnerships.

China concentrates on investing and selling abroad in order to promote its economic development through investments and trade, not least with African countries. Besides growing investments in other sectors (telecommunications, manufacturing, media, insurance, among others), China mainly invests in resource-rich African countries through infrastructure projects (pipelines, refineries, smelters and so on). These

As trade and investment relations of African countries with China grow, African officials must step up negotiations to secure benefits for their people and promote African businesses and investments in China to counter one-sided patterns. investments enable those countries to enhance resource exploration, exploitation and production. But such investments also contribute to securing China’s energy needs. As for trade, China’s production surplus over the years, fueled by labor and capital intensive industries, requires the exploration of overseas markets. Africa’s lack of manufacturing industries and need for finished products coincides with China’s market-seeking motivation to enable its companies to sell products made in China to African countries. According to China’s General Administration of Customs data on merchandise trade published on 21 August 2015, China’s total merchandise trade volume with Africa from January to July 2015 amounts to US$ 101.37 billion, comprised of US$ 61.69 billion in exports

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TRADE & INVESTMENT Different African governments, through their competent ministries, should bring aboard trade and investments experts to contribute to trade and investments negotiations. Africa has played and still plays a limited role in international trade negotiations, including negotiations with China as well as negotiations with other emerging economies, which are deepening their economic relations with African countries.

While they are joining fairs and exhibitions in China, African countries’ trade and investments delegations should not only build business ties with their Chinese counterparts, which often benefit the latter, but also inform different African governments and individual African entrepreneurs of the possibilities the Chinese market offers.

African embassies in China, through their economic bureaus, should play an important role in informing different African governments and competent ministries about China’s domestic market, industries and economy.

to Africa and US$ 39.67 billion in imports from Africa. While exports contribute to growth, Africa’s exports, strongly based on resources, have not enabled sustainable development across the continent.

China’s economic growth over the past three decades is itself heavily based on its exports. China’s recent reforms aim at sustaining its economic growth by moving from an export to a consumption-driven economy, which entails lowering imports and increasing domestic consumption.

Meanwhile the current economic situation in China of slackening economic growth, which according to a report by the Chinese Academy of Social Sciences (CASS) published on 21 September 2015 is forecasted to be at 6.9% at the end of 2015 and the devaluation of the renminbi (partly due to the stock market crisis, the fluctuation of the exchange rate and the decline of exports) illustrates that such reforms do not really contribute to sustaining economic growth in China.

However, China’s economic growth rate is still ahead of other major economies, and domestic consumption has increased.

FOCAC: CHANGING AFRICA- CHINA TRADE AND INVESTMENT PATTERNS China’s trade with and investments in African countries strongly shape ChinaAfrica relations. Yet, Africa’s investments and trade with China raise questions about Africa’s economic interests in China. Africa’s trade remains based on export of resources and some agricultural products. Meanwhile, the continent imports manufactured goods. In the growing Africa-China relationship, few African countries (Nigeria, South Africa[1], Mauritius and Seychelles) have explored

the economic potential that China offers in terms of setting up businesses as well as diversifying their exports and export destinations. While the world’s largest companies and small and medium sized enterprises have set up businesses in China, despite its challenges as a business environment, very few African companies have tapped into China. That said, there are a number of African entrepreneurs who have established businesses in China, but these mostly engage in exporting Chinese manufactured products back to Africa. Very few of these entrepreneurs diversify their businesses by importing African products into the Chinese market.

Business forums are organised on the margins of the FOCAC official meetings, in order to foster business ties between Chinese and African companies. But very often, when agreements are signed for joint ventures, they serve the interests of Chinese companies and entrepreneurs who bring in more capital to set up businesses in Africa. The opposite – where African businesses expand into Chinese markets – is rare, despite the massive opportunities offered by the Chinese markets.

RECOMMENDATIONS: HOW FOCAC CAN CONTRIBUTE TO CHANINGING AFRICA’S TRADE AND INVESTMENT PATTERNS VIS-ÀVIS CHINA To make changes in Africa’s current trade and investment relations vis-à-vis China, African officials should have a joint agenda and at first discuss among themselves under a regional or multilateral framework, maybe through the different Regional Economic Communities (RECs) or the African Union, before presenting it to Chinese officials at the FOCAC.

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However, to truly change Africa’s global trade and investment patterns, structural changes leading to structural transformation should occur in order to enhance institutions and policy environments, while fostering private entrepreneurship through policies which motivate entrepreneurs and facilitate private business across the continent.

Private entrepreneurship is key to domestic as well as international economic development.

Furthermore, African countries should aim to develop domestic economic sectors and create companies in their key industries, which could contribute to endogenous growth first and later expand to overseas markets based on their comparative and competitive advantages. The development of industries remains crucial for African countries; it should be based on policies, programmes and strategies and requires building adequate production, logistical and financial infrastructure in order to enhance production capacity as well as to diversify economies, market access, capital flows and financial transfers.

Finally, investment in human capital remains important. While one issue is the development of domestic economic sectors and the building of large companies which could tap into the Chinese market, another issue is that many African governments should do more to invest in the education and training of their populations in order to effectively involve them in the economy. * Daouda Cissé is a research fellow at the China Institute at University of Alberta, Edmonton, Canada. The article was first published on reporting FOCAC, a multimedia guide to covering the sixth FOCAC conference

SPECIAL FOCUS

CREATING VALUE IN AFRICA: USING AND ENHANCING YOUR CAPABILITIES TO SUCCEED ACROSS THE CONTINENT

by Jorge Camarate, Peter Hoijtink, Miles Puttergill

Companies from around the world have begun to make expansion across Africa a priority, recognizing that, despite many problems, it is among the fastest-growing regions in the world. But their attempts often lack an understanding of local market dynamics and the associated skills required for success. As a result, many of these companies have destroyed value instead of benefitting from growth opportunities. At the same time, part of the problem is that companies often embark on their expansion plans without first looking inward, examining what they can bring to these new markets. A capabilities-driven strategy, which builds on and enhances a company’s existing capabilities, will create more shareholder value than an approach that seeks out markets based purely on their intrinsic attractiveness.

Africa’s markets are too diverse for one business model to be successful everywhere. Companies venturing in can pick the markets that are most suitable by being more conscious of their own distinct capabilities, and by adding new capabilities that will complement them. As successful firms have shown, strong human capital development, partnering, and crossborder coordination are also needed to successfully execute such a strategy in Africa.

Opportunities abound As the bright sun emerges over the horizon and morning rush-hour traffic reaches its horn-blaring stationary peak, executives in Johannesburg, Lagos, Casablanca, Nairobi, and other African cities are already at their desks. The mood in those executive offices is noticeably buoyant and dynamic. This atmosphere reflects the invigorating dayto-day unpredictability of African business

and the confidence that opportunities are coming, and fast.

Since 2000, Africa has been growing consistently at about 1 percent above the global average.

Africa’s long-term economic potential has never been in doubt. The continent has 600 million hectares of uncultivated arable land, 40 percent of the world’s gold, 90 percent of its platinum, 8 percent of its oil, 26 percent of its liquid natural gas, and abundant additional resources. Historically, however, it was generally seen as a region of frontier nations, mostly too risky or ill-developed to invest in — except as a source of commodities.

But businesses are finally recognizing the potential in this region. Since 2000, Africa has been growing consistently at about 1 percent above the global average, and the ambitious, consumption-hungry middle

class has tripled in the last three decades to around 400 million people. Demand is booming in less-developed African countries, while more established economies around the world, including South Africa, stagnate. As a result, companies around the globe — in the U.S., Europe, China, Japan, and even Africa itself — are looking to build powerful pan-African enterprises. If only it were that easy.

Growth through strength Unfortunately, horror stories about expansion forays into Africa are legion.

The continent’s business press provides daily updates on the latest gigantic writedown on a dud acquisition, catastrophic loss due to macroeconomic and currency swings, sudden factory shutdown due to power cuts, embarrassing and costly case of fraud or corruption, and nightmarish security scramble to extricate endangered

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SPECIAL FOCUS service, as well as open and fair business practices.

A capabilities-driven strategy can help a company plan and execute its expansion into Africa.

Langman notes that Pick n Pay has generally focused on markets where these capabilities can be deployed with limited adaptation, thus reducing investment requirements and risk. Nevertheless, Pick n Pay is prepared to develop specific capabilities where necessary. These typically include proficiency at local sourcing and supplier development. They enable Pick n Pay to create sustainable long-lasting relationships in each country.

Both Sanlam and Pick n Pay set out to distinguish themselves in each country they entered. They chose to grow where the sophisticated technical capabilities and management processes they had developed in South Africa were in demand and would differentiate them from local players.

employees. Just two of many cases include Glencore’s recent suspension of mining operations in Zambia and the Democratic Republic of the Congo (DRC), due to weakening macroeconomic conditions, and the repeated shutdown of South Africa’s manufacturing base due to electricity shortages. It can sometimes seem as though Africa’s rising economic tide is sinking more corporate boats than it lifts.

not succeed in other parts of the continent without change.

Yet navigating Africa successfully is feasible, if a company approaches the challenge with the right course of action. Start from your strengths, don’t spread your efforts too widely, and focus on the businesses where you have a distinctive edge. Consciously deploy the capabilities that served you best in your home markets, and enhance them locally to meet the needs of consumers and businesses.

According to Heinie Werth, CEO of Sanlam Emerging Markets, the 2005 acquisition of African Life Insurance Company was critical to enabling the expansion. African Life provided access to Botswana, Kenya, Ghana, Zambia, and Tanzania and focused on the low-cost product offerings and mass-market distribution that were missing at Sanlam.

Based on the combination of Sanlam’s strong technical skills and African Life’s mass distribution, Sanlam has built a direct interest in 11 countries across Southern, West, and East Africa, as well as India and Malaysia. Werth stresses that the firm continues to approach new markets with flexibility and sensitivity to local context, looking for acquisitions and local partners to provide additional capabilities as necessary.

Consider, for example, the story of Sanlam, a South African financial-services group founded in 1918. Through its long experience serving the relatively affluent and sophisticated South African market, Sanlam developed world-class technical insurance capabilities, such as pricing and risk management, claims management, reinsurance, and capital management.

Though these important capabilities were relevant and in short supply in the underpenetrated neighbouring countries, Sanlam knew that its South African model would

Another example, from the retail industry, is Pick n Pay. A leading grocery chain in South Africa since 1967, Pick n Pay is the second-largest supermarket chain in Southern Africa (after Shoprite) and is currently establishing a footprint in West Africa. According to Dallas Langman, head of group enterprises (including international operations), the retailer has set out to generate compelling customer value in these new markets by deploying its distinctive operational capabilities. These include quality management and in-store

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A capabilities-driven strategy can help a company plan and execute its expansion into Africa. The heart of such a strategy is a firm’s capabilities system: the three to six mutually reinforcing, distinctive capabilities that are organized to support and drive the company’s strategy, integrating people, processes, and technologies to produce something of value for customers.

Understanding your own capabilities system allows you to coherently focus financial investment, management time, and organizational energy to the areas where they have most impact.

To generate growth, the capabilities-driven firm looks to generate as much business as possible in markets where its existing capabilities are relevant and differentiating (as Pick n Pay does). In addition, it looks for ways to enhance its capabilities system to address attractive new markets (as Sanlam does). When you adopt such a capabilities lens, the results are significantly better than when you simply look to own a piece of a growing market.

The data supporting capabilities-oriented growth The value of adopting a capabilitiesdriven approach to African expansion was clearly demonstrated in an analysis of major expansion deals across Africa between 2007 and 2013. Of the mergers and acquisitions made by companies listed on the Johannesburg, Lagos, and Nairobi exchanges, we identified a total of 82 suitable expansion deals. Using generally available data about these public company transactions, we tracked company performance following each expansion deal, comparing it to other expansions and to relevant industry benchmarks.

Using knowledge of the companies involved in the transactions, supplemented by additional research, we divided deals into three broad categories:

SPECIAL FOCUS industrialized economies. The most telling difference is that in industrialized economies like the United States, leverage deals outperform enhancement deals on average. It seems the value of improving capabilities is even stronger in Africa than it is elsewhere. African markets are so diverse that enhancements to the existing capabilities system are often necessary to survive and thrive in a new geography.

Although these enhancements are more challenging and risky than simply replicating the home model, the effort is worthwhile to get traction and win customers in the target market.

Selecting and entering new markets Navigating which markets in Africa might be appropriate brings up two questions that every company will need to consider. Which specific markets should you enter to get the most value from your existing capabilities?

(That’s the leverage question.) And which new capabilities do you need to add in each market to ensure success? (That concerns enhancement.)

Based on wealth and institutional quality, African countries fall into six categories.

Leverage: The acquirer applied its current capabilities system to incoming products and services. One acquirer that uses such a strategy is RCL Foods, the leading South African poultry producer. According to Pierre Rossouw, Group Africa development manager, RCL believes its Vector Logistics cold-chain distribution capability is what most clearly differentiates it in foreign markets, so it takes stakes in local product manufacturers and distribution networks that will benefit from that type of distribution.

Enhancement: The acquirer added new capabilities to fill in gaps or respond to market changes. For example, Clover, the well-known South African dairy producer, has an international expansion strategy based on enhancing its differentiated manufacturing capabilities and product portfolio. According to Marcelo Palmeiro, head of brands and corporate development, Clover seeks out local acquisitions to provide it with the local distribution capabilities necessary for success in new markets. (It will also seek distribution partners instead of using M&A.) Limited fit: The acquirer largely ignored capabilities, doing the deal for other reasons, including diversification and control of attractive assets.

It turned out that enhancement deals were dramatically successful, with shareholder returns that were, on average, 18.3 percent higher than the return posted by limitedfit deals after two years. Leverage deals also did well, scoring 12.2 percent higher.

Limited-fit deals performed poorly; even

the top quartile of these deals produced 3.7 percent lower total shareholder returns than the relevant index Unfortunately, this last group is prevalent in Africa. We found that almost onethird of deals had limited fit with the buyer’s capabilities system, with even higher proportions in the consumer and financial-services industries. The decisions to pursue such deals are not surprising, given the pressure African executives feel to grow their companies, the immaturity of capabilities-system thinking on the continent, and the inherent difficulty of finding deals that neatly match a firm’s capabilities system.

Almost one-third of deals had limited fit with the buyer’s capabilities system.

The difficulty of finding and structuring deals that make the most of capabilities is amplified in Africa. Greg Davis, CFO of Standard Bank International, a leading African bank with operations across 20 countries, points out the challenges that affect many deals in this region: overvalued assets, along with difficulties conducting due diligence and integrating purchases.

These challenges in finding, valuing, and structuring deals around capabilities provide a compelling explanation for why mergers and acquisitions generally underperform in Africa, with fully 66 percent of buyers returning less value than the relevant industry benchmark over the two years following the deal.

This analysis also provides interesting comparisons between Africa and

Answering these questions can seem bewilderingly complex when you are faced with the world’s second-largest and second most populated continent. Africa has 54 fully recognized sovereign states, covering a vast range of natural environments and hosting around 2,000 languages with their associated cultures.

Although a great many factors and a great deal of due diligence will come into play, our experience suggests that a good way to start choosing markets is by studying two basic market criteria: wealth (measured

by GDP per capita) and institutional quality (measured by the World Bank Doing Business Index). These factors will provide a solid basis for companies to broadly understand country-specific capability needs and select appropriate markets.

Based on these criteria and how the two are combined, African countries fall into six basic categories Market types in Africa Some of the wealthiest African markets have built strong governmental and civil institutions. They have reliable ports, roads, judiciary, police, and educational resources to draw on. Companies that might find these markets rewarding include those whose capabilities include worldclass innovation, quality, technology, and branding. For instance, First National Bank, a South African bank, has delivered impressive profits based, in large part, on its world-leading customer engagement and loyalty capabilities.

But then there are high-income countries that have weak institutions. These markets require a host of country-specific capabilities to ensure success, and might

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SPECIAL FOCUS be good places for a company with strong capabilities in managing relationships with government and other stakeholders, planning for and managing security challenges and crises, and creating supply chain resilience to ensure consistent service. Dangote Cement, a leading player in Nigeria, ensures the resilience of its supply chain through vertical integration from raw material sourcing to production and distribution, while the stakeholder engagement capability provided by the Dangote Group, one of the largest conglomerates in Africa, allows the firm to create the right partnerships and agreements.

well, but success in Mozambique, Angola, Zambia, and Zimbabwe requires adding new capabilities. Similarly, expansion across the Maghreb is often successful, whereas moving farther south requires adaptation.

Companies that target the popular markets

of national markets and factor it into their planning. In Nigeria, for example, wealth is concentrated in the urban centres of the South South Zone and the Greater Lagos region. Companies whose strengths lie in quality, branding, and innovation need to

of South Africa, Nigeria, and Kenya face the challenge of tailoring their capabilities significantly for each market.

focus their distribution strategy on these regions.

In middle-income countries with strong institutions, aspirational customers demand premium products and services but need them to be delivered at a lower cost point.

The widely publicized success of Kenya’s Safaricom provides a powerful example of how the capabilities of technological innovation (M-PESA mobile money proposition) combined with cost leadership (low-cost distribution network) can be used to dominate an aspirational middle-income market. Middle-income countries with weaker institutions face even more acute challenges to achieve an affordable costto-serve, given limited infrastructure, less efficient and transparent regulation, and weaker human capital. To overcome these hurdles, relationship and crisis management skills are essential.

Companies that target the popular markets of South Africa, Nigeria, and Kenya face the challenge of tailoring their capabilities for each market.

Although some low-income countries (like Mozambique and Liberia) have relatively strong institutions, all suffer from weak infrastructure. This means that successful businesses, whether exporters or serving local demand, must have strong capabilities in building and operating every component of their business independent of external support. Christo Weise, chairman of the pan-African retail chain Shoprite, points out how operating in low-income markets “taught us self-sufficiency and forced us to develop an extensive infrastructure to ensure the efficient operation of our stores.” For instance, Shoprite frequently takes the unusual step for a retailer of building shopping centres to house its stores, requiring entirely new capabilities in real estate development.

Of course, strong institutions and a stable environment make it easier to do business everywhere. In institutionally strong countries across the income spectrum, from Ethiopia to South Africa, companies can focus on competing in the market, in broadly the same way as they would in developed Western markets. Conversely, you can never be complacent about your ability to move capabilities from one country to its neighbor. Deploying the capabilities developed for South Africa to Namibia, Botswana, and Swaziland works

Similarly, blindly adopting the popular “oil slick” strategy of exploiting a region from one hub country is a risky approach.

Though linguistic, cultural, legal, and economic blocs are becoming increasingly important, neighboring countries often differ significantly with regard to wealth and institutional quality. The map suggests, for example, that a Nigerian company would need to enhance its capabilities in differing ways in order to operate successfully in Ghana or Burkina Faso.

Starting from this country categorization, your due diligence must go deeper. Despite the difficulties and time investment required to gather reliable data in the African context, leading players stress how critical this can be. Tava Madzinga, head of East Africa for Old Mutual, a leading financial-services group, explains that often the devil is in the detail, as small differences in local product preference can disrupt the economics of entire business models. Notably, firms need to understand the diversity that sits beneath the surface

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RCL approaches each individual market with a 50-question evaluation framework.

According to Rossouw, the framework requires such challenging tasks as estimating long-term changes to agricultural policy based on underlying political dynamics. To complete this data-gathering and analysis exercise, the firm taps the knowledge of contacts and clients and devotes months of staff time to research on the ground.

Expansion into Africa, day by day Once a company has identified the African markets most suited to its capabilities and the additional capabilities it will need for those markets, it can turn to execution — particularly, how to replicate home-market capabilities in other environments, add the new capabilities you need, and manage a pan-African business. To overcome each of these challenges and turn a great African expansion strategy into a great pan-African business, the following deployment approaches are critical.

SPECIAL FOCUS criteria mean RCL has to be patient, turning down 95 percent of the deals it is pitched.

Having picked the right partner, pay attention to the quality of the relationship.

In Africa, enduring partnerships are founded on aligned interests and personal connections, more than on legal contracts.

Sanlam avoids competitive bids, preferring to invest 18 to 36 months to establish a trusted relationship with a new partner and demonstrate the unique benefits it can bring to develop the partner’s business (including inviting management to visit Sanlam operations in South Africa).

According to Werth, to build successful relationships it is essential to adopt an open-minded approach and show respect, interest for the partner’s perspective, and a constructive approach to resolving disagreements.

Balance central control with local entrepreneurialism

Develop local human capital Capabilities are put in action by people on the ground. Since relying heavily on expatriates is not financially sustainable or positively viewed by African governments, local human capital is essential. Africa’s labour markets generally lack people with the necessary technical skills and relevant industry experience, meaning that companies must develop their own talent.

Relying heavily on expatriates is not financially sustainable or positively viewed

by African governments.

Start by embedding a core team of homecountry experts. Deploy your home-country staff as expatriates, but only for a defined period of time. These individuals will oversee the new business at first while quickly transferring practical skills to local hires. Old Mutual, for example, relies on a pool of expats with relevant qualifications and experience for functions where local talent is generally weak, such as actuary work. These expats are selected as much for their cultural agility as for their technical skills, to ensure that they can quickly connect with local employees and make a positive impact in a new environment.

Invest heavily in training and development.

Successful companies allocate significant resources to accelerating skills transfer. This often includes both on-the-ground training and bringing local employees to the home office to understand the firm’s culture and ways of working. Pick n Pay sets its expert expat managers time-bound targets for training and handing over responsibility to local staff. Thus, in its Zimbabwe operation, the management team and 99 percent of the staff are local.

Do what you must to maximize retention.

Successful companies that invest in training must find ways to prevent competitors from poaching their talent. They develop compelling value propositions for the local staff, including attractive (often above-market) compensation, additional benefits like pensions or housing, career development opportunities, a positive work environment, and a sense of community.

Standard Bank invests heavily in human resources at junior and senior levels, empowering employees to make decisions in their region and encouraging cooperation between regions to develop talent and build relationships and community affiliation.

Add new capabilities by partnering with locals This is generally the fastest, least risky, and least capital-intensive way to enhance capabilities for local conditions. This partnering relationship could take the form of a merger, a joint venture, or a simple supply arrangement.

In Africa, enduring partnerships are founded on aligned interests and personal connections.

Of course, you must select your local partner carefully. Leading players clearly define what capabilities, values, and ways of working they want from a partner and then evaluate potential candidates carefully against these requirements.

RCL, for instance, has strict requirements regarding a partner’s ethical reputation and track record of teaming with international players. According to Rossouw, the company minimises risk by undertaking thorough financial and operational diligence before making any agreement. These stringent

Don’t smother local subsidiaries with ill-suited control policies and processes.

But as you loosen the reins, ensure that you won’t be exposed to major failings of local judgment, or to ethics violations.

To accomplish this, you have to set your company’s risk tolerance and manage against it. Leading players understand that operating in Africa requires higher risk tolerance than operating in developed markets. According to Greg Davis, much of Standard Bank’s success in Africa can be attributed to its ability to strike a balance between regional compliance and risk oversight with full local accountability to empower decision makers. For instance, though the bank establishes a consistent corporate and investment banking capability globally, it grants country teams the autonomy to develop and execute distinct strategies tailored to their own market.

Geographic diversification can also help you manage risk African economies are and will remain highly volatile and unpredictable, vulnerable to both commodity price swings and political instability. The fortunes of individual countries can vary dramatically.

For example, Ghana’s GDP per capita has grown 106 percent in the last 25 years while that of the DRC fell 39 percent. To dampen exposure to these idiosyncratic risks, leading players like Sanlam choose to build a broad portfolio of businesses across a variety of markets.

Conclusion Begin this entire process by understanding the capabilities that have driven your success at home, and then look for other geographies where these capabilities are relevant. If you can navigate all of the challenges, you will have an enviable position: architect of one of the first panAfrican powerhouses, something your shareholders have been dreaming of.

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LIFESTYLE

THANK YOU LADDER:

APPRECIATE YOUR STAFF THIS SEASON

By Michelle Thompson

Fall is the time of year I love because the leaves change into beautiful colours and the weather is cooler. For a person who loves the outdoors like me, I am never going inside. Some people have an appreciation for fall because it gets them thinking about outdoor activities, football, or the holidays. People are thinking about family and friends they are going to invite to their homes to celebrate traditions and values that make this time of year special. If you are a corporate executive or business owner, you are no doubt thinking about showing appreciation to your staff during the end of this year. While it is customary to host end of the year appreciation parties my question to you is “should this time of year be the only time staff is appreciated”?

Acts of appreciation should be a practice that is ongoing in business for all levels of staff. Top executives or administrative staff are the ones that receive bonuses quarterly or yearly for the milestones a business has made during the year.

However, what about support staff that is doing the work. Administrative staff and executives ensure the business is running smoothly daily, however, support staff are primarily responsible for the interactions with customers. They provide services, support, and handle customer complaints.

Support staff ensures customers have great experiences and establish personal relationships with them, so they feel valued and keep coming back. Take a minute and picture in your mind what a business would look like if you had to do everything without staff. Some of you might say “I’ve been there, I did that”. I don’t doubt this isn’t true but wasn’t it easier when you were able to hire staff.

With staff, your long days may have still been long, but your focus was on business growth. The small business you started may now be a corporation. Or the corporation you lead may dominate your industry. Regardless, of the size of your business, the point of this article is that all employees should receive appreciation and not just at the end of the year.

Appreciation and saying, “Thank You”, does start at the top of the ladder with the executive level. However, the lower levels on the ladder deserve equal appreciation and words of thanks. Let’s examine some of the parts of a ladder for a moment to make this point. The top part of the ladder is called Top Cap. The Top Cap is the part of the ladder in which no climbing or standing is recommended. You the business owner or executive director are the Top Cap of the business nothing goes beyond your level. Therefore, it is very important that all levels below you remain strong to

maintain your position. The next level below the Top Cap is the Top Step. This level also comes with a recommendation of no climbing or standing. In business, the Top Step would be your administrative team. The Top Step helps keep the Top Cap in place. In this regard, we can say the administrative team helps the executive director maintain their position.

However, the lower levels of the ladder help support and make sturdy the Top Cap and Top Step. Another part of a ladder is the Spreaders. The Spreaders have a unique position on the ladder because they support the middle part of a ladder. The Spreaders know when to bring everything together and when to separate because it has opening and closing mechanisms. The Spreaders could be compared to the roles of your HR Department, managers, supervisors, or team leaders. Spreaders extinguish company fires among employees, develop talent, and support the Top Cap and Top Step by reporting the on-goings of the lower levels. The Spreaders also ensure all areas have the tools and resources they need to work effectively and optimize customer experiences. The Spreaders know that while their number may be small they carry a crucial role in unifying management and staff. The Rails on a ladder impacts every part of the ladder because it determines the length. The Rails of a business can be compared to employees that have such a strong belief in the mission and values of the organization they are selling it to everyone including you. Rails believe their company is the best in their industry.

Rails are an organization’s most loyal employee. Remember, that. Rails will welcome new employees and tell them everything they need to know about the organization. Rails realize company success and supporting all parts of the ladder are important, not their personal

agendas. Rails are individuals that will never leave your company. The more rails you have, the larger your business will grow. The next level on a ladder is steps.

You need steps on a ladder because the rails need something to hold together.

The lower steps hold much of the weight placed on a ladder. Think about it, for the most part, customers never climb to the top of the ladder they navigate up a few steps and go back down. The lower steps are always going to get stepped on regardless of how far a person climbs the ladder. Lower steps are support staff they carry the weight of customer’s experience. When customers are rude or want to blame someone for not meeting their needs lower steps are burdened with this responsibility. Sometimes, they must work with limited tools or resources and still get their job done satisfactorily.

By now, I am sure you agree all parts of a ladder are needed and appreciated.

As a business executive, appreciation of your ladder should be monthly.

Just ask the maintenance guys what happens when a ladder malfunctions.

Appreciation should not just be limited to the administrative team. Your customers are not patronizing the business to see the management staff or marketing representative. Customers develop relationships with employees at the lower levels of the ladder and look forward to seeing them each time they visit.

Divide and share the wealth. Remember, all parts of a ladder are needed to keep it stabilized.

If you need assistance with developing a yearly plan and budget to demonstrate appreciation for all your staff please contact us by email at pecanpiesouthernlife@gmail.com or visit our website at pecanpiemarketing.com and complete the contact us page.

DECEMBER 2018 /JANUARY 2019 | AFRICAN LEADERSHIP | 68

ECONOMY

INCHING TOWARDS INTEGRATION BY: CARLOS LOPEZ

It costs more to move a container from Kenya to Burundi than from Belgium or the United Kingdom to Kenya. Twenty percent of Africa’s international infrastructure networks, such as the Trans-African Highway network, are impassable. Flight connectivity is the lowest in the world and centered on only about 328 hubs for a land mass of around 11.7 million square miles, making it time-consuming and costly to travel between African countries (United Nations Statistics Division, 2016). Although the pan-African ideal has been part of the continent’s modern history since the struggles for independence in European ruled African territories in the 1950s and 60s, African leaders never succeeded in translating this ideal into political capital.

Attempts at real integration have so far yielded only mixed results.

A series of initiatives dating to 1980—the Lagos Plan of Action, the Abuja Treaty, the New Partnership for Africa’s Development, and the more recent Agenda 2063— were each heralded as the economic response to Africa’s need for a new, more interconnected future. Why is it proving to be so painfully difficult to implement this

vision of a truly integrated continent?

Broader perspective needed Part of the responsibility lies in the need for Africa’s regional integration agenda to move beyond a focus on trade alone.

There is a case to be made for a much broader perspective. Just as important as the variety of what is on offer at the local market is how easily citizens move between countries, where individuals travel for leisure or for work, how costeffective telecommunications are, where people choose to study or look for a job, and even how they transfer money to their family or get start-up capital for a business.

Yet few policymakers focus on this bigger picture when considering policies to boost integration. The continent’s regional economic communities are one tangible sign of progress on integration. Regional economic communities are the building blocks of the African Inching toward Economic Community established by the 1991 Abuja Treaty, which provides the overarching framework for continental economic integration.

These country groups include the Arab

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Maghreb Union and the Community of Sahel-Saharan States in the north, the Economic Community of West African States (ECOWAS) in the west, the East African Community (EAC) and the Intergovernmental Authority on Development in the east, the Southern African Development Community (SADC) in the south, the Common Market for Eastern and Southern Africa (COMESA) in the southeast, and the Economic Community of Central African States in the center. The regional economic communities are taking concrete steps toward integration. For instance, in mobile telecommunications, they are now applying innovative measures to reduce the cost of mobile roaming through closer cooperation. This is particularly true in the EAC. In January 2015, Kenya, Rwanda, South Sudan, and Uganda launched the East Africa One Area Network in a bid to harmonize regional calling rates and lower costs between partner states. Recent estimates suggest that mobile phone traffic grew by 935 percent within three months of the launch, while the cost of making calls fell by over 60 percent. But critical challenges remain.

Formal intra-African trade in goods is 14

ECONOMY percent, compared with 17 percent for South and Central America, 42 percent for North America, 62 percent for the European Union, and 64 percent for Asia.

And Africa’s largest economies still trade on a most-favored-nation basis. These are just a few examples of how far the continent has to go before it is truly integrated. While policymakers have designed integration frameworks, their implementation has been hampered by the absence of monitoring and evaluation mechanisms. Simply put, there was until recently no means of measuring, in a precise and objective way, which countries are making the most progress in deepening regional integration, in which areas individual countries are

growth of remittances in recent years.

For many African countries, migration can plug skills gaps and allow the exchange of ideas, leading to the expansion of entrepreneurship and innovation beyond borders. Financial and macroeconomic integration. When capital flows more freely, investment increases, finance is allocated where it is most productive, and the continent’s investors get higher returns.

In turn, as the transaction costs of doing business fall and financial institutions work more effectively, micro, small, and mediumsized enterprises, and start-ups will benefit.

Better financial integration promotes knowledge and technology transfer as well as greater innovation. Practical, results-

regional community overall, followed by the SADC and ECOWAS. Part of the reason the EAC does so well may be related to per-independence history, when the core of the EAC was run as the East African Federation by the British with shared governance, traditions, and institutions.

With recent strong the exception of Kenya and South Africa. For instance, while Nigeria represents 37 percent of regional GDP, it is not a top performer on regional integration, nor is Egypt. Conversely, countries such as Cote d’Ivoire, which contributes only 3 percent of regional GDP, are among the top performers. So what does all this mean for Africa’s integration, and does the multiplicity of regional groupings help

falling behind, and which policies and institutions have proved most effective in promoting integration. Quantifying integration To fill this gap, the African Union, the African Development Bank, and the Economic Commission for Africa have launched the African Regional Integration Index, which presents a cross-border and multidimensional view of integration. The index measures five different dimensions: trade integration, regional infrastructure, productive integration, free movement of people, and financial and macroeconomic integration. These dimensions build on an overview of the key socioeconomic factors that are fundamental to integration.

Sixteen categories, cutting across the five dimensions, are used to calculate the index to unlock their productive potential, inject investment, overcome bottlenecks, and make sectors more competitive.

Free movement of people. The crossborder movement represents not only a powerful boost to economic growth and skills development, but it also supports competitiveness. Free movement of people benefits both the country opening its borders and the country whose citizens are on the move, as is evident in the

focused tool Both a status report and an energizer for change, the index aims to be an accessible, comprehensive, practical, and results-focused tool that emphasizes policies and on-the-ground realities. It is designed to provide policymakers at the national, regional, and international levels; businesses; and other stakeholders reliable data that rank countries and institutions in various categories and dimensions, showing strengths and weaknesses. The goal is to enable action. The index—in its first edition—focuses on comparative analysis within and among the regional economic communities, with the aim of taking into account the diversity in Africa’s integration efforts. It allows each community to identify its strengths and gaps across each of the five dimensions.

Several important findings have emerged from the initial analysis. Africa’s overall regional integration across the regional economic communities stands below the halfway mark on the scale that ranges from no integration at all to fully integrated on all dimensions (see Chart 2). This shows that the overall integration in the region has significant potential to progress. The EAC comes out as the most integrated

or hinder it? Although the index cannot directly answer this question, other research (Economic Commission for Africa, the African Union Commission, and the African Development Bank, 2012) clearly shows that Africa’s regional economic communities have been the locus of many effective integration measures, particularly in the areas of trade integration and free movement of people. While these efforts represent progress, the multiplicity of standards, rules of origin, and regimes that span the continent surely increase the burden of compliance on African businesses. Africa needs to harmonize integration policies across its various regional blocs.

Carlos Lopes was the former United Nations Under-Secretary-General and Executive Secretary of the Economic Commission for Africa. This article is based on the Africa Regional Integration Index Report 2016 of the Economic Commission for Africa, the African Union Commission, and the African Development Bank.

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