VENTURES AFRICA - I get confused with quotes sometimes – one points at a direction and the other seems to point at the opposite. However, the above quote is meant to set the pace for this exciting account of a touching account of entrepreneurial experience which I have the copyright to share with everyone willing to pick up a thing or two in their personal sojourn into entrepreneurship.

Ventures Africa sat with Bukky Shonibare, the Group CEO of “The 555 Group” owners of 555 Consulting Limited (Human Resource Management, Operations Management, and Strategy); 555 Foods (owners of ‘Beans City’); 555 Impact Centre (Training & Development); and 555 Foundation (Corporate Social Responsibility with focus on promoting Entrepreneurial Development, Personal Development, and Poverty Alleviation) as she shared a story every budding entrepreneur must take to heart as you navigate the mucky waters of entrepreneurship. Bukky holds dual Certificates in Entrepreneurial Development and Social Sector Management from the Pan African University, Nigeria. She is also a Training partner on the SME Toolkit, with the International Finance Corporation (IFC – member of the World Bank Group). Read below her story and tips on entrepreneurship…

“Let me start by stating how difficult and sensitive it is for me to pen this down. This is not just my real life ‘business failure’ story, but also a fresh wound I am still recovering from. It is especially tougher because as a Management Consultant, I am not expected to make these kind of mistakes; yet this has proven to me how hard it is for a surgeon to operate on himself. I have also come to understand that making mistakes is not a reason to stay down and dwell in pity parties, and giving up is NOT an option no matter how grievous or seemingly irreparable the challenge may be. Surmounting these roadblocks has invariably empowered me with the ability to better advise others.”

Having left paid employment in December 2007, I decided to face, full time, an NGO (The Light Foundation – TLF), which I had started while living in England. To me, TLF was not doing any badly as we could boast of some remarkable projects that were impacting hundreds of lives in several ways. Then it dawn on me that running a charity organization abroad is quite different from running an NGO in Nigeria, especially in terms of funding, technical support, and credible collaboration.

When funding and support became somewhat difficult, I decided to pend the NGO and start a profit-making business; so I started 555 Consulting Limited. I planned to build a strong and sustainable internal operational structure so that when my attention shifts back to the NGO, the business would be able to stand on its own with minimal attention to it, and a certain percentage of the annual profit would be earmarked for impact projects in TLF (now, 555 Foundation). I should have stayed with my plan, but after two years of running 555 Consulting, I decided to start a regular income generating business so as to have real life business field experience which I believe would boost the depth and quality of my consulting; so I started 555 Foods (owners of “Beans City”).

Below are some of my mistakes and the lessons I have gathered so far in running these businesses:

Lesson 1 – Festina Lente: This literally means: make haste slowly. My greatest mistake was moving too fast, when I should have actually hurried slowly. Beyond every reasonable doubt, I am now convinced that every idea has its perfect timing. That you ‘caught’ an idea, and you are so excited about it does not mean you should start immediately. It is sometimes wise to wait and plan; but our fear of someone else starting the same unique business makes us rush into commencing. Starting Beans City, when 555 Consulting was still relatively young was a decision I should have considered well. The consulting firm being young is not so much a function of how many months or years we have been in operation, but how well we have built the internal processes and structure to ensure its survival and sustainability.

Lesson 2 – Start small and grow gradually: I was able to gather funds from different sources to create the physical standard I wanted for Beans City; but I later realized that perhaps I should have started really small – from my kitchen, serving family and friends, or doing outdoor and delivery services, as that would have provided me the opportunity to learn some things I had to forcefully, yet painfully, learn on the business. This did not only set us back, we wasted money.

Lesson 3 – Bounce-off ideas: This is about standing on others’ shoulders so as to see farther! I was unable to find any business owner who was doing the kind of business I wanted to do – a beans-only restaurant; everyone was doing the regular kind of restaurant. I made avoidable mistakes even though I have great people around me who are brilliant enough to help prune my crazy ideas, yet I narrowed down to a microscopic few whose advice/contributions were limited to their fields and experiences. It is however unfortunate that the experienced ones were unwilling to share important information that would have helped my start-up. Some were so scared of competition that even when my business is geographically far away from theirs, they still were unwilling to share.

Lesson 4 – Manage Opportunities: Even though I had written down my idea of a Beans City three years before I started, I prematurely commenced because an opportunity came for me to pay 25% towards the purchase of a shop, which I jumped on without having a concrete plan for how the next payments would come, believing that Beans City would grow immediately and make enough profit to cover the huge monthly installment payments for the completion of the remaining 75 percent. Truth is, not all opportunities are to be seized no matter how juicy they appear; there is time for everything! And that you have one out of all that is needed for a business to start, does not mean you have all, as there is need to consider several factors like: costs, preparedness, time, resources, etc.

Lesson 5 – Start and move with the end in mind: The best way to build a structure that will last is to first have a clearly mapped-out architectural plan. Though while building, there will be need to make some adjustments based on realities, but the presence of a plan will save a lot of headache. Another mistake I made was to ‘jump start’ the business without a well thought-out management and operational plan.

Lesson 6 – Feasibility: To run a successful business, assumptions don’t work! I conducted a virtual presumptive Feasibility Studies, which of course, was inconclusive and inaccurate. I assumed setting up Beans City just anywhere would sell due to the uniqueness of the concept, and the aesthetics I planned to create. I later realized that one cannot build a castle in the desert; people will only admire or wave at it from afar and may come close once in a while, sometimes never. It became valid how that the three most important things for a business are: Location! Location!! Location!!! If I had conducted a proper Feasibility Studies, it would have revealed, among others, the fact that the location of the business was not suitable for the standard I created.

Lesson 7 – When you fail to plan, you plan to fail: It is one thing to have a great idea; it is another to have a framework on HOW it will work out profitably and sustainably. I realized that the most important thing any aspiring business owner need is NOT funds, as you may have all the funds and not know how best to utilize it! I lavished my funds on aesthetics, yet the internal structure was suffering. I should have had at least a six-month plan on how the business will be sustained operationally; like plans for salaries, fueling of the generator, buying electricity units, re-stocking, and even statutory government payments (e.g. Food Handlers fees, Signage levies, etc) so much so that government officials were coming with threats to close the Restaurant, which destabilized and demoralized me as well as my staff. I beseech you to please PLAN!!!

These are some of my avoidable mistakes and the unpalatable lessons I have had to learn; but I am glad I did as I have become wiser having learnt lessons and gained experiences I would not have got in a 4-walled classroom or a-thousand-page book. While I am currently recovering and making my way back on track, I implore you to learn from my goofs and not repeat them!

I wish you great success.

The post 7 Personal Tips On Entrepreneurship appeared first on Ventures Africa | .

“We are committed to developing the future leaders of industry in Africa,” said Elumelu. “The Tony Elumelu Foundation has dedicated itself to the promotion of entrepreneurship, and the creation of an enabling environment for business leaders to reach their maximum potential and transform their communities. This is how economic prosperity for all will be achieved; this is what adds social value to the people of Africa.”

At the lecture delivered at The Tony Elumelu Foundation offices in Ikoyi, Porter, who is known as the world’s “most influential management guru,” spoke on competitive strategy, addressing entrepreneurs and business leaders on how best to sustain market advantage.

Porter also met with the members of the recently-inaugurated National Competitiveness Council of Nigeria (NCCN), which is chaired by the Minister for Trade and Investment, Olusegun Aganga, to deliver a timely lecture on how to improve the productivity and competitiveness of the Nigerian business environment, which is experiencing a lot of activity under the transformation agenda.

Friday, the Tony Elumelu Foundation and US-based AllWorld Network, which ranks dynamic fast-growth private companies globally, hosted the inaugural Nigeria50 Awards, at Eko Hotel & Suites in Lagos, to honour 50 of Nigeria’s most innovative and fastest growing companies.

Arjan Mirchandani runs the number 1 company, Euro Global Foods and Distilleries Ltd, which blends, bottles and distributes beverages with inputs sourced from local farmers. Mirchandani is aiming to create a positive change in blending and bottling in Nigeria by establishing processing facilities that support local farmers and the greater agricultural sector while also creating jobs.

The runner up is Swiss Biostadt Limited, a medical services company owned by Emmanuel Ajayi. In third place, Global Oceon Engineers, a Lekki-based engineering services company run by Seun Faluyi.

The 50 awarded entrepreneurs have diverse professional backgrounds and run companies in energy, IT, agriculture, management consulting, financial services, logistics, medical practice and more.

Porter, who is an AllWorld co-founder, emphasized that, “It is entrepreneurs who are going to change the developing world, not governments. The Nigeria50 companies represent the leading edge of a new approach to the region’s competitiveness.”

Founded in 2010, The Tony Elumelu Foundation is an African-funded philanthropic organization focused on supporting entrepreneurs in Africa by enhancing the competitiveness of the private sector. The foundation creates impact through business leadership and entrepreneurship development programmes, impact investments, research and policy advocacy.

AllWorld’s mission is to find and scale ALL the growth entrepreneurs of the emerging world by 2015. AllWorld systematically identifies and ranks the fastest growing private companies to create the Arabia500, Africa500, Asia500, Eurasia500, and America500.

The post Tony Elumelu Foundation Hosts Foremost Business Expert Prof. Michael Porter appeared first on Ventures Africa | .

We introduce Eric-Vincent Guichard, a son through blood and experience of the African soil. Eric’s background makes for a fine read, but is nothing compared to the impact and difference he is making for others, through others!

Armed with stints at the World Bank as a portfolio manager and technical adviser to sovereign and multilateral institutions worldwide, Eric is also an alumnus of the venerated Harvard Business School.

We chat to Eric about Homestrings, a successful investment avenue for making a difference.

The world needs more of this, especially Africa.

VA: Eric, paint a realistic yet pragmatic picture of life in rural Guinea during the 20 years you spent growing up?

EVG: My parents met in the 60s – during the heyday of the African political independence movement. We lived in Fria, a bauxite exploitation town run by the French. Seku Ture, the leader who led Guinea to independence, emphasized Africanism and education in a rural setting for all. I walked 2-3 miles to Tige, a rural school with an aluminum roof and benches that were holdovers from the colonial period. The roof leaked heavily during the extended rainy season and we spent a third of our time cultivating maize, tapioca and corn; later, in Boke, making mud bricks from an open fire stove. At the time these experiences seemed normal. As I got to Senegal and exposed to more modern education I realized the disparity of my experience.

VA: Besides our new found resources that the rest of the world all of a sudden has become interested in, what is your experience of how people (in developed countries) view Africa and its people?

EVG: I think that Africans, especially in the Diaspora, are taking control of the image. You are starting to see a migration in Western perceptions that is similar to what happened to Asians in the 70s and 80s when we went from derogatory images to more modern and progressive projections. Key to that transformation was economic performance. Africa, writ large, is at the inflection point of this transition in perception.

VA: What are some of the things you can remember, that you thought of after leaving Guinea for the USA to study?

EVG: Well, my mother, an amazing woman who probably deserves her own column, made that transition easy for my brother and I, by making sure we were exposed to the African-American realities through books, stories and letters. Also keep in mind that I was born in Brooklyn and began living in Guinea at the age of 6. The move to the US for school presented its own cultural adjustments. I was most impressed with the accessibility to knowledge and the “can do” attitude that permeates the American culture – very liberating.

VA: What keeps you busy at the moment?

EVG: Growing Homestrings is my key priority. We have some exciting branded products we will be rolling out this year – so stay tuned and connect with us on Twitter @Homestrings and on our Facebook and LinkedIn pages! I also manage institutional funds at Gravitas Capital in Washington, DC – that presents its own challenges, but I am happy with how that is going. We just published our 2012 performance, and we are pleased.

VA: You are making continued success of Homestrings. Tell us how the concept came about?

EVG: Thank you. Before starting Homestrings, I worked for 6 years at the World Bank and a further 16 for a boutique asset management and advisory firm I founded, called Gravitas Capital. Over that time I found that I could not find a way for people like me to invest in projects back home while still benefitting from the returns made in the institutional asset management space, by private equity fund for example.

So, I created a web portal to allow African Diaspora experienced investors to make a difference back home while also making the 20-30 percent+ returns that before now were only available to institutional investors (Homestrings catalog 2012 annualized returns net of fees nears this). But the thing is that while I was creating it, enough of my non-African friends mentioned that they had been looking for a way to personally invest in this way that I realised that it was not just something that the Diaspora would use, and Homestrings is now marketing more widely to any investor with US$1000 plus to invest in emerging markets.

VA: So Homestrings is an investment vehicle to make a difference while earning a return?

EVG: Absolutely. Our investments aim to focus on the “productive sectors” of the economy, in other words, the sectors and organisations that will help to generate long term sustainable development for the community and wider country as well as generating financial returns. However, we are a user-driven vehicle and therefore will respond to requests for regions for investment. We always love to hear the views of members and interested parties so please don’t hesitate to get in touch with us on Twitter (@Homestrings), Facebook or through our LinkedIn group.

VA: What is the best sort of return one can expect, granted that each product in the portfolio is different?

EVG: The Homestrings catalog 2012 annualized returns net of fees nears the 20-30% returns that until now were only available to institutional investors. We identify investment opportunities that are well vetted, structured and transparent so that the investors which are using the platform can have access to those due diligence elements. We go beyond the call of duty to provide the same level as institutions the kind of due diligence information that people want to have access to.

VA: Has Homestrings become even more relevant among the international investor audience given turbulent economic conditions in the developed markets?

EVG: I think it’s true, given the current economic climate in developed markets, that international investors are increasingly looking further afield to achieve outsized returns. The World Bank and other international organizations and media outlets are championing Africa’s increasing stability and resilient growth as a potential counter to the malaise that had settled over developed economies. The continent’s economy grew around 4.5% last year, according to the African Development Bank, and hosts an emerging consumer class that the bank said was already as large as one-third of Africa’s one billion people, comparable with China and India.

The continent provides a wealth of opportunity and we are increasingly seeing interest from a broad range of investors using Homestrings to gain access to that potential.

VA: Any other developments you see for the African continent?

EVG: Based on current trends, I predict a growing number of African professionals returning to Africa and participating actively in investments and businesses in their home country or region to build growth there. Good news for the continent.

The post An African Entrepreneur And The Rewards Of Making A Difference appeared first on Ventures Africa | .

Indeed the vast majority of wealthy South Africans are involved in giving. Our recent report which surveyed High Net Worth (HNW) giving in South Africa for 2010 (The Giving Report) showed that 93.5 percent of HNW donors in South Africa gave money, time or goods to social causes during the year under review. Giving is a way of life for these donors, with most having given to social causes for at least 10 years.

The second version of The Giving Report will be available this year and the findings, to be published in October 2013, will enable us to establish the impact the financial crisis may have had on philanthropic initiatives. Anecdotally, through our work in providing philanthropy services to donors, we believe that the impact has been quite significant. Before 2008 when the economy was booming both locally and internationally, South Africa’s donors were setting up their own foundations and committing to philanthropy in heart-warming numbers.

However with the majority of South Africans already hit hard by the financial crisis over the last few years, most are finding themselves in circumstances where perhaps some of their charity actually needs to start at home, by providing for adult children whose businesses have taken a severe knock or to protect retirement provisions that have not performed quite as expected. This year with the markets having improved we hope to see a change with more HNW ndividuals having more certainty on their own financial situations. Also, the added tax advantages mentioned in therecent Budget may go some way to encouraging South Africans to give more. We just last year made submissions to Treasury in this regard as part of the Private Philanthropy Circle with the purpose of encouraging philanthropy and it is heartening to see that they seem to be taking steps in a positive.

The true test of giving comes in difficult times. The financial crisis has in fact shown how those who had set up long term structures, funded with a view to being able to give well into the future, have indeed been able to continue their giving. The importance of this is all the more apparent as many Non-Profit Organisations have struggled to continue their work due to the knock on effect of the crisis on their funding

Some question the need to publicise the recent actions of Patrice Motsepe and David Beckham, but these actions have certainly prompted conversation – placing giving and philanthropy firmly in the spotlight, leading us to look at our own endeavours and what we are doing or could be doing regardless of magnitude. It comes down to commitment, to taking that next step and to not only enjoy the arts but to perhaps fund a foundation to unearth and foster South African musical talent. Rather than bemoan the unemployment problem in our country, we need to find and support solutions that fund bursaries and scholarships.

The post Billionaire Donors In South Africa – Giving Is A Way Of Life appeared first on Ventures Africa | .

In 2012 Michael Jordaan also led FNB to superior performance results achieving a 27 percent profit before tax also achieving spectacular return on equity of 39 percent.

Within 4 years and now only at the age of 44, this dynamic and innovative CEO has challenged the banking sector market, industry and leaders in every way and has done so by leading from within.

Our interview finds out a bit more about a man who should be one of the most respected CEO’s our country has ‘seen’ in a long time. Achieving results in the heart of global fiscal contraction while leading thousands within the FNB ‘family’, we get to hear from the epitome of corporate leaders.

Michael Jordaan, before anything else, is a father, husband (in no particular order) and ‘son’ of the African sun, giving him the birth-right to challenge the course of our country. He certainly will not be the only one to make this challenge.

Michael, thank you for chatting to us and sharing you’re sought after opinions.

VA: Tell us a bit more about Michael Jordaan – no CEO stuff.

MJ: Thank you for your kind introduction. My twitter description says “Banker, economist and wine enthusiast” and I think this sums me up to a large extent. I am an economist by training and I’ve been involved in banking for many years. I am passionate about FNB, banking as a whole and the contribution banking can make to South Africa. You may know that I own a wine farm in the Cape and my wife is a superb wine-maker – one of my great joys is time at home with my family. I have a positive outlook on South Africa and Africa as a whole and want to make a difference through creating a great banking experience for our customers and helping small businesses to grow and create jobs for the wellbeing of the country.

VA: You’ve had a challenging few days, maybe.

MJ: If you had the choice, where would you and family take a break? It has been challenging, but I believe that it’s necessary to move forward and embark actively on another great year. But if we had to take another break we would go to the Cape West Coast – we love that part of the Cape and it is a great place for our family to rest.

VA: What is a good read on innovation and you are currently reading?

MJ: A good read on innovation is a book called The Innovator’s Dilemma by Clayton Christensen, which describes how the culture of a company can determine how quickly it can keep up with industry-changing innovations. Ironically, while it has great insights, we at FNB have taken a different view and bring innovations in-house with the existing culture.

VA: Are you out-numbered at home?

MJ: I live with 4 women, so I am most definitely outnumbered at home! Family life is one of my greatest treasures though and my wife and daughters are a great joy to me.

VA: Let’s move on to the more serious stuff! It’s a good time for emerging markets?

MJ: It is. Of course, emerging markets also have their challenges, but in general I think we’re most likely to see alpha growth come out of the emerging economies. Bear in mind, though, that there are many parties looking at the same pie, so it will take strong business sense and appropriate risk taking to optimise the opportunities in the emerging economies.

VA: How did you lead to achieve, to become the world’s most innovative bank?

MJ: Firstly, you must know that much of the celebrated success of being an innovative bank has come out of the innovation of the people who work for FNB. Very little of it is driven by me, but I hope that the way in which I lead and the culture we have built empowers innovation. My leadership style is very simple – I try my best to live out the values of empowering people, encouraging innovation and building a great business through excellence, diligence, accountability and integrity. As clichéd as it may sound, empowering people and being explicit about the intention to innovate is imperative for creating an innovative organisation. It has taken a number of years to get this right, but of course I am extremely proud of the staff at FNB for making us the most innovative bank in the world.

VA: How tough was this feat in the banking sector – considering downgrades and general fiscal challenges?

MJ: The South African banking sector is generally facing some uncertainty around changing regulations and the world’s perception of the state of the industry. But I have found that innovation often thrives in uncertainty and in tough environments. The SA banking industry is extremely competitive, and innovation is not only important, it is the key to creating a competitive advantage.

VA: Let’s be frank, you have turned the industry on its head (from an innovation and results perspective) but 80 percent of Africa’s population still does not have access to any form of financial services?

MJ: True, and this is where innovation is important. It’s less about creating new, fun products, and more about creating products and services that are useful and even crucial for the consumer market. The African consumer base is steadily becoming more dependent on mobile phones and it is therefore important that banking moves toward mobile channels. We have done this through FNB Connect very successfully. We also want to reach the parts of the country (and continent) where walking into a branch is not always easy to do and you can now transfer and withdraw cash from the Spar, Pick ‘n Pay, Checkers and Shoprite retail network through FNB’s Cash@Till innovation, free of bank charges. Instead of bringing people to banks we are looking for innovative ways to bring banks to people.

VA: Watching the CNBC Davos Debate last week, we saw that Africa’s growth is pegged at 5,3 percent for 2013. If we take South Africa out of the equation, this could be 6 percent?

MJ: I do believe that we are going into a time of lower growth, and this presents a challenge for all businesses (and ultimately consumers). Companies can no longer ride the wave of GDP growth alone – innovation, new thinking and creative solutions are required if we want to beat nominal inflation growth. That said, there certainly are growth opportunities in Africa and these need to be actively worked into company strategies.

VA: Pretend you’re on the last make or break road show. Sell South Africa to investors and what would you say are the expected returns for Foreign Direct Investment (FDI)?

MJ: I would firstly recognise that we do have a number of challenges that we need to work through as a country. But the facts are that we are getting many of the basics right – for instance, we were ranked highly for our banking governance system and financial stability in the WEF 2012/2013 report. Our Reserve Bank and our stock exchange are world class, and this provides a helpful structure to doing business in South Africa. The second element is the scale of opportunity we have in the country. We have an upwardly mobile middle class, a mass market that is desperate for jobs and a wealth of resources that require FDI. We have considerable expertise in the fields of engineering, finance, medicine and law and we have a growing network of entrepreneurs who are fuelling the innovative potential of South Africa. So while we do clearly have challenges, as every emerging economy will, there are certainly enough factors to mitigate some of the investment risks that investors may not find in other emerging markets.

VA: When you were a kid, can you remember having any opinion on what you thought was a good environment (politically if you like) or what stood out for you growing up in Germany?

MJ: I didn’t actually grow up in Germany, but was born and raised in South Africa. I had a sense of stability in the world growing up, and was cognitive of the social and political pressures on the country. As I’ve gotten older the reality of the structural differences between countries has become more evident to me.

VA: How is FNB contributing to (from a CSI perspective) to creating a better environment for our kids of today?

MJ: FNB has a CSI team who are actively involved in volunteering and providing services to the communities that we have chosen to impact. However, we also feel that we should do “good business” and create a better world as we go about our daily jobs. Providing cost-effective, easy access to banking is a huge part of giving our consumers (and ultimately their children) the opportunities that they need to save, transact and create a life for themselves. We hope that the culture of banking and using money wisely will be passed down to the children in this generation. We constantly return banking fees back to customers in the form of rewards (or eBucks), which makes banking with FNB cost-effective and rewarding. We also have initiatives that use funds to invest in growing entrepreneurial businesses. I personally believe that small businesses are the answer to reducing unemployment and therefore giving children a better opportunity to find work when they are adults.

VA: The Economist: Over the Rainbow Nation (Oct 20, 2012) states that after 18 years of democracy, South Africa is one of the most unequal countries in the world. Give us your philosophical view on improving this.

MJ: I agree with the Economist on this one, and I truly believe that the only way that we will move toward income equality is through creating opportunities for employment. I have enormous respect for small businesses and entrepreneurs solving problems for their communities in the townships, but we need to create more opportunities for growth in SMEs. The more people are empowered to start their own business, or train themselves up for employment, the more downward pressure we will put on unemployment.

VA: On 01 June, 2012 – The Times Live published an article on “Education System a National Disgrace”. In the first paragraph it states and I quote “a UNICEF report – A Review of Equity and Child Rights’ reveals that of South Africa’s 19 million children, 662 000 attend neither primary nor high school, and 15 percent of high school – age children attend primary school, with repetition rates the highest in Grade 10 and Grade 11. From an economists’ perspective, how should these statistics be interpreted?

MJ: This is a harsh reality to take in, and if we don’t improve in the area of education we will fuel another generation of unemployment. Of course, as an economist my concerns would be around further social unrest, further unemployment and stunted economic growth. However, I must also say that once again there is large-scale opportunity for education in SA. Online educational programs and tutoring businesses are springing up in both urban and rural parts of the country. I get excited about the impact of technology on educational with programs like Khan Academy or the iUniversity.

VA: Does FNB find an over-supply of skilled individuals to fill the FNB ranks?

MJ: We have found many exceptional and highly skilled individuals in the job market, but we also take it upon ourselves to invest in talent and train people up to be able to deal with business complexities in a creative and innovative way in-house. I’m not sure that I would say that we have found an “over-supply” because there is a limited pool of skills and competition among the banks for these skills.

VA: Where there are problems, we have the opportunity to find solutions. Is the global increase and spotlight on Africa justified?

MJ: From a global perspective, South Africa and Africa have a mix between great growth opportunities and emerging market challenges. I would agree though, that in the right environment, innovation and entrepreneurialism can find solutions that could create opportunities that we wouldn’t otherwise take the time to imagine. The question is whether we will be able to create this environment for the generations to come.

VA: What kind of multinational companies does South Africa (of Africa if you want to venture north) need?

MJ: South Africa really needs business and social partners, rather than pure financial investors. We need multinationals that are committed to continuing business in South Africa despite the challenges they face and to make a difference to the communities in which they operate. South Africa needs committed partners who will lobby for positive change, who will reinvest dividends locally rather than extracting them abroad, create jobs and who will share their international experience with local business.

VA: From an economic perspective South Africa is no riskier that an economy in Europe at this point. What other factors play a role in assessing investor risk?

MJ: True – there are many risks inherent in investments into European economies, and certainly the global trends that are apparent currently must be evaluated in making investments anywhere in the world. Political factors and “ease of doing business” from a governance perspective are less of an issue in the developed economies, but play a role in African economies. Ultimately as an investor you want to find investments that are managed by strong executive teams and that have growth potential from their environment as well as their industry and internal fundamentals.

VA: What are FNB’s ambitions for Africa?

MJ: FNB is already fully operating in 7 African countries and is looking at opportunities in Nigeria and Ghana. We believe that we have good coverage of the countries that we want to be in, but it is now more about leveraging our existing platforms to provide great banking experiences to those in Africa.

VA: The areas we as South Africa need to negotiate terms for our commodities that will see substantial growth for people?

MJ: I’m not entirely sure about what you mean here, but there is certainly substantial interest from abroad for the assets and commodities of South Africa and Africa as a whole. There is a duty upon all decision makers in transacting with foreign investors to protect the value of the assets in the country for the generations to come.

VA: Again, thank you for raising the bar in South Africa demonstrating the leadership we ought to encourage in Africa.

The post Meet The Innovator: Michael Jordaan, CEO First National Bank appeared first on Ventures Africa | .

This is in keeping with an announcement Ramaphosa made last month shortly after he was elected deputy president of the African National Congress (ANC) at its national conference in Mangaung in December.

Last month, Ramaphosa promised to review his existing positions, responsibilities and obligations to address any “potential conflicts of interest”

“This will allow me to ensure that I can adequately perform the responsibilities of my new position,” he said at the time.

This week Lonmin said: “As planned and previously announced, Cyril Ramaphosa, a non-executive director of the company, retired from the board at the conclusion of the annual general meeting (AGM) held yesterday (Thursday).”

In October last year, the Farlam Commission, which is investigating the Marikana shooting, heard that Ramaphosa allegedly said in an e-mail that the events around the five-week stoppage by Lonmin workers were criminal acts.

The legal team representing Marikana miners revealed this at hearings being held at the Rustenburg Civic Centre.

On the eve of the Marikana shooting, he allegedly told management and Ramaphosa will also be stepping down as joint chairman of both Mondi and Mondi at its AGM in May.

Ramaphosa is also a director of SABMiller, the Standard Bank Group and a number of smaller companies.

The post Ramaphosa Resigns From Lonmin Board appeared first on Ventures Africa | .

The Motsepe family, through their pledge, is joining the likes of Microsoft founder Bill Gates and Billionaire Warren Buffet of United States in the “Giving Pledge’ initiative which encourages wealthy people to donate at least half of their money to charities. The Giving Pledge initiative was instigated by Gates and Buffett and they have been able to persuade nearly 100 billionaires to pledge the bulk of their wealth to charity, but so far, most of them are Americans.

The Motsepe foundation was created in 1999 and it has been working with communities, church groups and schools. It has also made contributions to the UNICEF as well as a number of foundations in South Africa, including the Nelson Mandela Foundation.

Speaking in an interview with MoneyWeb, Precious Motsepe, Patrice’s wife, explained the thoughts behind the new initiative. “We’ve been inspired by the giving pledge that was started by Warren Buffett and Melinda and Bill Gates. Patrice last year met with Warren to discuss further and understand the giving pledge. And in November, last year, we discussed with the family that this is the way we want to take our giving. We’ve always been giving as a family, but now we wanted to take it to another level,” she said.

Motsepe’s announcement marks a major milestone in South African philanthropy. Black Economic Empowerment (BEE) expert and managing director of Black Lite Consulting, Ajay Lalu, also hailed Motsepe’s philanthropic initiative.

According to him, “For a long time we’ve been looking for BEE to be more philanthropic. I think for the first time we are starting to see that emerge. I hope this is going to spur other BEE beneficiaries to follow a similar route,” he said.

Motsepe who has been described as the first richest black South African to emerge from post-apartheid South Africa, with a calculated net worth of $2.65bn (R24 billion) in November, said, “It’s a recognition that people in my position, and me in particular, have a huge responsibility to South Africans who are less fortunate — those who are unemployed, poor and marginalised — and to make a humble contribution to improve their lives and living conditions.”

“We’ve got many, many years ahead of us. It’s not as if there’s going to be a huge lump sum available. There’s going to be significant money available…. It’s a lifelong obligation in my life and my wife’s life and then our trustees who will look after our money when we’re gone,” Motsepe said at a press conference on Wednesday.

Motsepe, who founded and chairs JSE-listed mining group African Rainbow Minerals (ARM), which has a market capitalisation of 43 billion rands ($4.7 billion) declined to put a value on cash flow to the foundation but said funds for the foundation will be drawn from returns on investment rather than selling down investment holdings.

The money will be distributed to various issues affecting the poor including health, education, unemployment and the upliftment of women. He will be making donations towards making South Africa a better place while consulting with church and traditional leaders, as well as various charities, to decide where the money goes.

According to him, the most effective way to deal with joblessness and poverty is to create a business environment that is globally competitive and attractive to the private sector.

“We don’t want Africa to forever be a continent of charity and a continent of donations. We want Africa to be self-sustaining,” the 51-year-old mining tycoon said.

“People in my position have a huge responsibility to South Africans who are less fortunate.”

“I decided quite some time ago to give at least half of the funds generated by our family assets to uplift the poor and other disadvantaged and marginalised South Africans but was also duty-bound and committed to ensuring that it would be done in a way that protects the interests and retains the confidence of our shareholders and investors,” Motsepe said.

While congratulating Motsepe on this feat, Gates said, “It was a wonderful thing to hear how the Motsepe’s really, as part of their moral conviction as a family, believe in giving back. I want to congratulate them.”

The post Patrice Motsepe Donates Half of Family Wealth To Charity appeared first on Ventures Africa | .

The specialist school announced the event – to be entitled “Young African Diaspora Entrepreneurs – Exploiting Your USP (Unique Selling Proposition)” – inviting registration by young businesspeople of the African diaspora in the UK who are looking to capitalise on their unique link between the UK and the African continent.

The event – which will take place on February 2 – will see expert industry players and successful entrepreneurs hold presentations and workshops aimed at maximising the potential of attendees, and assist in building successful inter-continental businesses.

Topics to be covered include potential sources of funding, concise business planning techniques, weighing the opportunities and downfalls of social enterprise, to name but a few. The event will also provide plenty of networking time to build connections.

Participants will be awarded with a certificate marking successful completion of the course.

Information and registration can be found here.

The post SOAS Launches Training Event For African Diaspora Entrepreneurs appeared first on Ventures Africa | .

According to a statement released by his company, Ayabatwa’s sons and son-in-law will take over the helms of affairs upon his retirement.

While his eldest son, Paul Nkwaya and Son-in-law Serge Huggenberger will serve as the Technical Director and Financial Director respectively; 72 years old Ayabatwa will continue to advise his sons and son-in-law on company management but will no longer be involved in day-to-day operations.

Upon retirement, Ayabatwa plans to spend more time on his charitable endeavors. He is developing a foundation mainly to help aspiring African entrepreneurs. The foundation will draw upon his life experience by offering educational, employment and economic assistance to budding entrepreneurs.

Speaking on his retirement, Ayabatwa said: “I am very proud of what I’ve accomplished over the last five decades. I worked extremely hard to create jobs and opportunities for Africa, and have no doubt that my sons and son-in-law will lead my companies successfully into the future.”

Ayabatwa, rose from being a Tutsi-Rwandan refugee in Burundi to a successful entrepreneur with just an eighth-grade education. While he had to create many of his own opportunities, his company, Pan African Tobacco Group and the other companies he founded along the years which produce products such as tea, plastic shoes, beer, snack foods and cements operates in 10 countries and trade in 27 countries in Africa and the Middle East today.

His businesses have been able to provide employment for about 26,000 people who in turn support at least 182,000– in Sub-Saharan Africa.

“My goal was never about making money; it was about building something up, creating something. That is what I tried to accomplish and that is the legacy I leave to my sons and son-in-law,” Ayabatwa, the father of six and grandfather of 14 said.

The post Pan African Tobacco Founder, Tribert Rujugiro Ayabatwa Retires appeared first on Ventures Africa | .

Born in 1974 in Bushbuckridge, Mpumalanga, South Africa, Sibongile Sambo’s interest in aircrafts started when she was a young girl. Whenever she sees a plane flying overhead, she would stop immediately and imagine herself in that plane. Sambo had visions about planes and would imagine herself flying to different countries and meeting people. Her dream came true when the 2003 post-apartheid government passed the Black Economic Empowerment Act, which enables people from previously disadvantaged backgrounds enter and participate in economic life as entrepreneurs.

However, she had a challenge that could have prevented her from achieving her dream – she had no prior experience or capital to purchase an aircraft. Rather than go through the formal means for acquiring the capital, Sambo relied on her family to lend her the money to kick start her business. The small family loan from her mother and aunt enabled her to broker contracts between aviation services and those with air-transport needs.

Ultimately, with her impressive education history and work experience in human resources from various organisations like De Beers, City Power; Sambo started her airline company. In 2004, Sambo invited her sister to be a partner in her aviation firm.

After the invitation tendered by the South African government for aviation firms to bid on a contract for cargo transport, Sambo was on course for success. The contract was awarded as a joint venture between SRS and another firm. Although a collaborative project offered a golden opportunity to wade into the industry, the other firm soon withdrew, leaving Sambo to learn the contracting process on her own.

Speaking on her experience as a fresh-blood in the aviation industry, Sambo said “It was very challenging. I had to learn the different background operational needs before a flight. I had to call around and find out from different people what I needed to do. Even the clients themselves assisted me because they had run (similar) contracts before.” Such was the challenges she faced and how she overcome some of them.

“Most people saw (my entry) as very awkward, and initially, people never took me seriously. I had to prove myself more than 10 times.” Ultimately, Sambo got her message across as she said: “I told them I’m here, I’m here to stay, I’m here to grow this business, and I’m here to make changes as well, because I’m young, I’m very innovative and I want to bring a new spice into the industry.”

In addition, the aviation industry did not have many young, female or black entrepreneurs. In this, Sambo said:”My background gives me that platform to become a strong woman. I started living away from my parents from the age of five or six, which gave me a lot of independence. For me, managing in an environment that is very male dominated just comes naturally. It comes from a confidence and willingness to learn, but also from the willingness to make mistakes, learn from them and move on.”

“Being able to penetrate a male-dominated industry has been a career highlight.” she says.

In June 2010, SRS first Aviation shop opened at SA airports and since then SRS has opened a chain of retail shops in South Africa airports.

Doing this hasn’t always been easy, she admits, “but as soon as men are aware that you’re as intelligent as or more intelligent than they are, they take you seriously”, she says. “So I stay knowledgeable; I read continuously and attend conferences and industry events regularly.”

She admitted that “Being able to communicate with people at different levels has probably benefited me most in my career.”

Sambo is known for having the knack to taking advantage of opportunities. Her ability to network targets has also helped her as a successful entrepreneur in South Africa aviation industry.

Her company also has an Air Operating Certificate by the South African Civil Aviation Authority (CAA), making her company the first black operational enterprise to be given full rights to undertake commercial flying activities.

Aside from being an entrepreneur, Sambo doubles as a Motivational Speaker. She mentors youngsters as well as business man and women in Africa. The ambitious and self driven entrepreneur has been able to generate job opportunities and empower women from previously disadvantaged background.

Sambo is affiliated with several associations including the South African Entrepreneurs Network (SAWEN) – an organisation that promotes youth and women empowerment globally; Business Women Association (BWA) and she is part of a team that is establishing the Southern African Woman in Aviation a non-profit making company that will encourage women to enter the field of Aviation in different levels; offer bursaries and scholarships towards Aviation related training etc. Sibongile is a board member of SAWIA.

She also has a strategic relationship with Women of Color in Aviation & Aerospace in the United States of America. She is also a member of Women in Aviation International (WAI), the Black Management Forum (BMF), the Enterprise Development Forum, FABCOS (CHAMSA) and Fly South – just to mention a few.

A Member Think-Tank of the World Entrepreneurship Forum (WEF), founded in France by French president, Nicolas Sakorzy and EMLYON Business School; Sambo is also part of a team establishing a South African chapter of the NGO Women in Aviation International, and was featured in the World Bank report Doing Business: Women in Africa.

She is a beneficiary of the month-long mentorship program in the United States for international businesswomen, featuring a mentorship assignment with one of FORTUNE’s Most Powerful Women with the Honourable Hillary Rodham Clinton as one of the founders of the programme.

Her efforts have been rewarded over the years. In 2006 she cleaned up the awards table, taking home the Regional Business Woman of the Year award, the Black Women in Business award in London, the SRS Aviation Fidentia Award and the Top Emerging Gender Empowered Company award.

In 2007, Sambo was named a Leader of Tomorrow by the Fortune Magazine. In 2009 she was nominated for the Queen Victoria Memorial Award (International Socrates Award) by the Europe Business Assembly in London. In 2009 she has been nominated for the Queen Victoria Memorial Award (International Socrates Award) by the Europe Business Assembly in London.

“These awards show that I’m heading in the right direction. It also means that the business of aviation is my playground. I plan to take SRS Aviation to greater heights and become the leader in this business.”

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