VENTURES AFRICA – There’s a new billionaire on the block.

Laurie Dippenaar, a South African banker and co-founder of FirstRand, the country’s pre-eminent banking group has become the latest member of the elite club of billionaires as the stock value of his three major holdings, FirstRand, Rand Merchant Insurance and RMB Holdings leaped an average of 37.1 percent since September last year.

Dippenaar, 64, owns a 2.28 percent stake in FirstRand valued at R4.96 billion ($526 million), a 5.75 percent ownership in Rand Merchant Insurance valued at R2.19 billion ($232 million) and a 6.05 percent shareholding in RMB Holdings valued at R3.47 billion ($368 million). All three companies are listed on the Johannesburg Stock Exchange (JSE). His stakes in these three companies have a combined value of R10.6 billion ($1.16 billion). At the exchange rate of R9.11 to a dollar, Dippenaar’s wealth is now valued at $1.16 billion.

This is the first time Laurie Dippenaar’s personal fortune has hit the $1 billion mark.

Dippenaar has a remarkable story. In 1977, he and two other partners – Paul Harris and GT Ferreira came together to set up a small financial structuring house in Johannesburg. Each man came with his own unique strengths. Harris was the out-of-the-box thinker; GT Ferreira was the shrewd and relentless negotiator and Laurie Dippenaar was the numbers man.

Rand Consolidated Investments

The three friends each deposited a cheque to bring the balance sheet of the company to R10,000 (roughly R80,000 in today’s rands or $8, 463). They called their firm Rand Consolidated Investments (RCI). The startup company was a structured-finance house which specialized in leveraged leasing and off-balance-sheet financing.

The trio started out by offering financing to public utilities for their capital equipment, but with a different twist. As fate would have it, the South African government had offered public utilities a tax break at the time through the South Africa Tax Act. The government was giving tax incentives for capital investments in public utilities, but the utilities themselves could not participate in the opportunity because they were not required by law to pay taxes. The bulk of deal making at the time involved leasing companies stepping into the deals to advice banks or other financial institutions on how to structure the deal and share profits. But the trio did it differently. Rather than acting as a mere advisor, they resorted to quoting as principal. In essence, they dictated the price of the deal and played the lead role in sharing and distributing profits to participants.

Laurie Dippenaar once recounted in an interview with a South African newspaper, “Obviously, to accumulate capital you either take capital from outside or you generate it yourself through earnings. We did that by simply using a structure that nobody else had used, and it took time for our competitor to cotton onto what we were doing.”

RCI recorded impressive financial returns from these deals, and before long, the company grew swiftly, diversifying into an assortment of boutique financial services.

Rand Merchant Bank

The founder’s vision, drive and complementary strengths transformed their fledgling business into one of South Africa’s leading Investment banks. Their newly-found success brought a desire for even bigger conquests. Armed with strong cash reserves, the technical know-how and a burning desire for growth, in 1984 the team acquired Rand Merchant Bank (RMB), a small Investment bank owned by South African luxury goods billionaire, Johann Rupert and merged it with Rand Consolidated Investments.

Momentum Life And More Acquisitions

The merged company adopted the name of RMB, and growth was kick-started. The trio replicated their success and built RMB to become one of the paramount investment banks in the country. Eight years later in 1992, they made another audacious acquisition. This time around, the target was an ailing pedestrian life Insurer, Momentum Life, which was one of the country’s largest insurance companies and was listed on the Johannesburg Securities Exchange. A new holding company, RMB Holdings was formed and Momentum became a fully-owned subsidiary of RMB.

Subsequently, Dippenaar was sent to manage affairs at Momentum, while Harris and Ferreira stayed back to run RMB. Within five years, Dippenaar had transformed the ailing insurer to profitability. But, still not content with the successes they had achieved, they set their sights on larger opportunities.

In 1998 they made a double acquisition. RMB Holdings acquired joint control of First National Bank, one of the country’s largest banks called, as well as Southern Life, the country’s fourth largest insurance company. The new institution was renamed FirstRand Bank, and is now one of the country’s largest listed financial services groups.

First Rand Group has operations in six African countries and India, and more than $80 billion in assets. In 2010, FirstRand’s RMB Holdings spun off insurance division RMI.

Passions And Philanthropy

Dippenaar apparently enjoys canoeing, cycling and rugby. He sponsors the Laurie Dippenaar Postgraduate Scholarship for International Study. The scholarship is awarded annually and is available to a South African citizen, for study outside South Africa in any discipline at the internationally recognized University of their choice for a Postgraduate degree. It has a value R350 000 ($37,000) per annum for a maximum of two years.

Breakdown of Laurie Dippenaar’s Wealth

2.28 percent stake in FirstRand valued at R4.96 billion ($526 million)

5.75 percent ownership in Rand Merchant Insurance valued at R2.19 billion ($232 million)

6.05 percent shareholding in RMB Holdings valued at R3.47 billion ($368 million)

Total: R10.62B at R1 = R.9.11 = $1.16 billion

* Values of stakes reflects shares outstanding multiplied by stock price; both values are as of the close of business at the JSE on the 17^th of May, 2013

The post Africa’s Hidden Billionaires: New Billionaire Emerges As RMB Stock Rises 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 also probe the mind of Marc Elias – CEO @ Seed Engine to find out about his fascination with Infointeg

Let’s get to know more about IntelliCred.

VA: Shana, thank you for chatting to us. Tell us how Infointeg started?

SK: Infointeg (the original name of the company), which has recently changed to IntelliCred, was the result of frustration by my partner, Kevin Derman and I, when trying to find credible information online. We would search for new suppliers or need to validate information potential suppliers would give us, and there would be no way for us to verify this. From this frustration, Infointeg (from information integrity) was born.

VA: You are based in Johannesburg now. What sparked this move?

SK: At the end of 2010, financial resources where running thin. Everyone loved our idea, but bootstrapping the business meant we could only go so far, and decided that we should move to where the decision-makers resided.

VA: I have met many entrepreneurs over the last few years. What makes being an entrepreneur so special for you as a young African woman, in South Africa?

SK: I love South Africa, in spite of the negative publicity it is receiving right now. Being alive in a “free” society (where there is still much work to do), is an exciting space to be in. There are many initiatives geared toward women entrepreneurs, and if you do your homework and get the timing right, you can benefit. I’ve been fortunate to do other things such as my time to do inspirational talks to girl-learners in order to encourage them to study technology as a career and use my networks to raise funds and toys for my Annual Toy Drive.

VA: You have picked up some useful accolades along the way. Paint a pragmatic picture for aspiring female entrepreneurs out there on what type of work-rate goes into achieving such success?

SK: I am humbled at the term accolades. It has taken many years of hard work, social sacrifices, including moving away from my beautiful Cape Town, and many sleepless nights to get to where I am and it will not stop anytime soon.

Success (and I never think I am close) is not an overnight success. My first company was co-founded with two partners, while finishing my degree (which also started later in life). Studying and working fulltime is a juggling act of note. I would attend a lecture, then meet a client, then run back to a lecture.

After graduation, my days and weeks started blurring into each other. Weekends were typically not time off and typical work days were anything between 12 and 14 hours a day. Entrepreneurship is a road that is full of opportunity and full of challenge which can take any form. The key is to know when and how to pick your battles and have a mentor who can keep you on the path to success.

VA: what are some of the innovative products the company has slithered into the market?

SK: Our first product, the Infointeg Trust Seal, launched and was short lived when Verisign (the number one leader in SSLs) brought a competing product onto the market. We could not compete head-on with marketing against this global giant due to lack of financial resources and parked the product. Since then we built on and transformed this technology into a White Label product called IntelliCred.

VA: What is Infointeg working on at the moment?

SK: We’re working on a product called IntelliCred, an online brand risk management tool, which allows companies with memberships (such as the Cape Chamber of Commerce, BEESA, Softline, SABS etc.) to protect their brands, control their members and grow their revenues, by means of a visible trust seal, controlled by the company and displayed on the members website. Visit www.intellicred.com for more information.

VA: What is shaping the technology market at the moment?

SK: Mobile and application development, social media and online trust. Rachel Botsman presents a Ted talk on the economy of trust and how social connections and trust is driving business. I see more and more security-related and trust products entering the market. I also see social media embedding itself more and more into products to bring centralisation and convenience together. Mobile and application development is being shaped by the plethora of tablet and smart devices entering the market. Companies are starting to move away from fancy websites and pushing their users to their applications instead, saving more features for mobile.

VA: Let’s bring Marc in here. Marc welcome! What is Seed Engine?

ME: Howzit! Seed Engine is a business accelerator. We are the bridge between business incubation and venture capital. We accelerate a maximum of 10 ventures per programme, 3 times per year, over a 13 week programme that we’ve designed to explode high growth businesses into both local and international markets. We provide seed capital, intense mentorship and coaching, office space, meeting rooms, basically everything entrepreneurs need, as well as direct access to investor and distribution networks to join in on each explosion. We don’t take any fees, simply equity. That means that our skin is in the game with our ventures. If they succeed so do we. That way the relationship can only be win win.

VA: What is your role or place in the market at the moment?

ME: Seed Engine’s role is quite simple. In many ways the brand is positioned as the epicentre of South African entrepreneurship. Over the next few years we obviously plan to venture up north to the rest of the continent, but we still have a little while to wait. Seed Engine is the elite enabler of growth, success and best startup practice.

VA: Identifying new markets and companies can be complicated. What attracted you to Infointeg?

ME: It’s quite simple: a concept that we hadn’t seen before, and thus represents an opportunity that we are proud to have under our portfolio. We looked at the nature of the opportunity together with its leader of course, Shana. Her ambition, experience and drive was the selling point, over and above her business idea. We bring on the champions’ champions and Shana is just that – she’s got the potential to be the real deal.

VA: Based on current market shifts and patterns of technology development, what makes Infointeg stand out, from a South African perspective?

ME: From a South African perspective, there’s nothing like it. That makes it unique and defensible. The product development is also designed and developed in such a way that it will cater for seemless innovation, enabling us to keep ahead of the market and avoid complacency. That being said, the marriage between the founder and the tech is key. No single element can work and progress without the other. It makes the business a gem.

VA: If you feel there is a global perspective, please elaborate?

ME: Absolutely! That’s why she’s here. The scalability and scope of the venture. The value proposition is vital in this analysis, and we are confident we’ve got it, if not getting it right and ready to bring national pride to Shana, a South African FEMALE entrepreneur.

VA: We have had the social platforms developed like Facebook, Myspace etc. What is next from an Angel Funder perspective? What you looking for from fledgling ICT companies, going forward?

ME: This is always a tough one to predict. From a B2C perspective, there’s been a lot of keen interest in innovative file storage solutions, bio-medical and process innovations and education methodologies. That being said, angel investors can be as unpredictable as the general consumer base. The truth is they often don’t know exactly what they are looking for. The trick is to monitor investment market movements and innovate upon the analyses. From a B2B perspective, like IntelliCred, they have taken a fairly static and one sided offer and created a 2 sided market – something nearly impossible to come up with if we’re stuck in traditional and unproductive business practices and decision making processes. IntelliCred is well ahead of the curve and it’s our intention to build it into a market leader and retain that position.

VA: Briefly, what process is followed if Seed Engine is approached by a start-up ICT company?

ME: Thanks for asking that, just go onto www.seedengine.co.za and click apply. You can also find us on Facebook and Twitter (Seed_Engine). Once we’ve seen the application and researched the potential opportunity, we conduct a series of interviews with the teams of founders and make a decision and/or offer from there.

VA: Does South Africa innovate on a scale that is globally competitive?

ME: Without doubt. The concept of Prepaid, the companies like Thawte, and entrepreneurs like Shana tell me that there is room in the international market for South African innovations. What we lack are large pools of talent that are supported by a national culture of entrepreneurship. I’m not saying there’s no talent, I’m saying that the good ones are going to work for corporates. And I’m not saying South Africa doesn’t have entrepreneurs, I’m saying that the market doesn’t seem to go out of its way to support local innovations until they have undergone supernormal growth. Adoption of new solutions is key. Once we’ve got that as a unified national celebration, then we’ll be able to regularly make global headlines for reasons other than political. We need to build a few wins for the country, that what we’re doing every day – starting with Shana’s IntelliCred and her 5 fellow Seed Engine ventures.

VA: Why not?

ME: As I said there’s a cultural issue. Moreso, there’s a dependency and entitlement mentality that has become a national epidemic due to many things, but obviously centred around historical politics and economics. We need to focus on skills development that can compete globally, it’s not about giving someone something to do, and it’s about being better than the rest of the world at doing it. Let’s start with education.

VA: What is key to innovative ICT development in the SADC region?

ME: Differentiation, innovation and market disruption. But an idea is not a business without execution. The key is getting started. The future of each of the ideas is dynamic and depends the on the skill and determination of the founders as well as the defensibility of the core business.

VA: For you both: What roles will ICT and innovation play in economic development over the next five years and are we geared for this?

SK: Attending a business event last year, the CEO of the company rattled of stats in terms of revenue made and where the money was being spent. It was made clear that companies generating large revenues directly contribute to economic development in terms of tax and salaries paid and most importantly supporting local suppliers. An important aspect to note about these large firms is that they were once start-ups. Entrepreneurs creating businesses and employing local talent will play a crucial role and technology allows business to do so much more. Creating new and innovative products to solve local problems first, with an international growth plan, should be more of a focus even at the start-up phase.

Are we geared for this? The initiatives that exist, in my opinion, could do with more marketing and as South African entrepreneurs, our tendency is to not give entrepreneurs who have failed, a second chance. The entrepreneurial support eco-system exists, it needs more support.

ME: I strongly believe that companies like Seed Engine are changing the landscape for years to come. We can boast skills and ideas so there’s plenty room to grow and pioneer new solutions and innovative companies. Are we geared for it? From an educational perspective we haven’t even started to make a dent in the raw talent out there. From an infrastructural perspective, we are far behind where we need to be regarding connectivity etc. And finally, from an investment perspective, the funds are there, but we need to apply a non-banking approach to venture capital and build the start-up ecosystem from the inside out rather than the outside in in order to create something sustainable and conducive to organic growth. At some point, we also need to get passed the idea of being led by political circumstances and start to lead it instead. That’s when the culture will be celebrated and supported.

Thanks for chatting with Ventures Africa!

The post Leading Female Entrepreneur: Shana Kay, CEO IntelliCred 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 | .

Today, Horseman shoes is a footwear manufacturing company that makes quality and fashionable footwear with the finest leather. Some of the company’s products are men’s dress shoes, Unisex sandals and slippers, School sandals and Security boots. But just how did this young entrepreneur get into the business of shoemaking? The shoemaking entrepreneur has also undergone series of training programs some which include leadership, business management and financial management. In his chat with Ventures Africa, Tonyi tells us about his passage into entrepreneurship, his shoe making business, challenges, aspiration and hope for his business. As a young entrepreneur himself, Tonyi advise young entrepreneurs to step out of their comfort zone and not let the fear of failure hold them back.

Entrepreneurial journey

When asked if he had always wanted to be an entrepreneur, Tonyi said: “I would not say I had always wanted to be an entrepreneur but I had always wanted to drive change. I had always wanted to be part of a solution to our challenges instead of sit and complain. And it so happened that I found the opportunity to start with the unemployment situation among the Ghanaian youth.”

Starting his business

Tonyi started his business, Horseman shoe, while he was an undergraduate at the University. He started by buying from manufacturers in November 2009 and by August 2010, he had opened his own workshop and employed artisans.

“The business idea came when I first bought a locally made shoe for myself and anytime I put them on I had unending compliments. Friends became interested in owning pairs. It then dawned on me that there’s an opportunity to make a viable venture out of it for myself and the craftsmen who usually operate on very small and informal scale. The whole idea was to migrate these guys from their corner shops into a factory”

“I also wanted us (Ghanaians) to move away from the patronage of second hand products. I believe we deserved something new and decent for our souls rather than pre-owned stuffs imported from Europe. So we have to create something by us and for us”, he added.

Migrating shoe makers from their corner shops into a factory

Horseman CEO explained that “It was just a matter of identifying these young people who had the desire and passion for it. I scouted for them and got others through recommendation. I’m still on the search for more young artisans.”

Horseman Shoes, its target audience and distinguishing factor from its counterpart in the African market

“We have a range of products and each range has its targeted audience. Our products include men’s dress shoes targeted at the young professionals and the working class. We also have female flat shoes made from leather, our unique local fabrics: GTP and Kente. We manufacture school sandals for senior high schools and we do also safety boots for industries and the security.
What set us apart from other manufacturers is that, our shoes especially for the men and women are handcrafted with genuine materials. Our shoes are a blend of quality, comfort and style. We also make bespoke shoes.”

Why the name Horseman Shoes?

“Horseman represents the unique features of horses. They are fast, strong; they have stamina and are beautiful. These are what our brand stands for. We want to associate with the young people who aspire greater heights in their various fields of endeavor. It takes determination and focus to achieve. So like the horse, they have to keep running in horseman shoes,” Tonyi explains.

Sourcing for materials internationally?

Currently we source raw materials from local importers who import from Europe and Asia. But very soon there are certain materials we will be sourcing directly from suppliers.

Creativity in the shoe making business

Business has certain principles that must be followed if you want to be successful, regardless the industry you find yourself in. Creativity is the fulcrum of the industry (fashion) I operate. If you don’t have it you cannot stay in business.

Challenges starting the business + lesson learnt managing the challenge(s).

The challenges we face as an infant enterprise are numerous but are however surmountable. One of the challenges is the availability quality human resource. Getting young people with the right attitudes and the willingness to start small is very difficult. Easy access to finance is also another great challenge we face as young enterprises.

Experience of failure as an entrepreneur?

Tonyi says “Whoever has not experienced failure probably has not tried anything before. I encountered a lot of failures and challenges. I think that’s one of advantages of starting small. You make small mistakes and you learn from them. I had no business background in terms of academic or experience starting my business. So I obviously had difficulties in managing certain aspects, especially finance. I’ve lost some money before due to poor management. And I’ve learnt a great deal of lesson from it.”

Doing business in Ghana?

Doing business is Ghana is not easy I’m sure just like many other developing countries. But generally there’s condusive atmosphere in terms of political stability, security and macro economic growth that facilitate business. There are however some institutional challenges young enterprises encounter such as taxation among others which we hope to sort out through advocacy.

Most significant and exciting experience since venturing into the business world

I have had quite some few high points but what comes readily to mind is having the rare opportunity to represent Ghana in the US President’s Young African Leaders Initiative 2012. I had the opportunity to network with sixty (60) other participants from all over Africa.

Experience as the representative of Ghana in the US President’s Young African Leaders Initiative 2012

It was such a huge and varied set of experiences I had being part of the US President Young African Leaders Initiative. To start with, the recognition by the US embassy in Ghana in nominating me indicated that somebody is watching whatever you are doing. Because it is not a program one applies to attend but they rather identify you.

Pitching Horseman Shoe to investors and buyers

There were several platforms where I pitched my business to investors, buyers and many other groups.

Meeting other 60 young people from the continent was a networking opportunity to expand social, political and business ties. It also created a platform to network and share ideas with American businesses. I did an internship with an American Branding and Advertising for two weeks which gave me a lot of insights for my brand building.

Minimum start-up capital for shoe making Business

Using his case as an example, Tonyi said although he cannot say there’s a stated minimum capital requirement for shoe making and for that matter many other businesses. But he started his shoe business with only 100USD.

Company’s worth today

About $90,000

Will he say Horseman shoe business is successful and why?

It depends on what indices you are using to measure success. Unfortunately success is often measured in materiality. But in my own small way, I would say Horseman Shoes has been a success so far. It is a business I created out of nothing and today I am known for Horseman Shoes. There has always been the perception that made in Ghana products are of inferior quality but I’m very happy to see that my shoes defeated that misconception. I think it is a feat to be proud of. We can also measure our success in the creation of employment for other young people. Although it’s not a significant number, putting food on the tables of 10 people is a starting point.

Horseman shoes in the near future

The vision of Horseman Shoes is to build the biggest footwear manufacturing company in Africa in terms of employment and brand preference. In line with our vision, we hope to create employment for several hundreds and thousands of the Ghanaian youths. We also hope to expand our product line to include belts, wallets, bags and other fashion accessories. In pursuance of all these we seek to build a world class brand.

Business outside Ghana?

“Currently I don’t have any business outside Ghana,” he says.

Expansion plans

Of course there are plans to expand within the sub region and other parts of the world. But it’s a step at a time. We want to grow organically.

Other venture apart from the shoe business

Currently all my time and resources are devoted to the nurture of my infant business – Horseman Shoes.

If he is not into shoe making business, what else?

Very interesting question. I believe God has a purpose and a role for every individual and I think he would have used me in some other way.

Mentors in the business industry

I have quite a few people I look up to as mentors – both local and international entrepreneurs. One of such people is Prince Kofi Amoabeng, CEO of UT Holdings in Ghana. He’s a very real and practical person but highly principled. Another person whose story inspired me is Richard Branson of Virgin Atlantic. I got encouraged when I read his book – “Loosing My Virginity.”

Advice to budding entrepreneurs

What I will say is there are a lot of opportunities around us. It is often not the biggest of ideas that works but rather the small ones. The most important step is the beginning. Young people should step out of their comfort zone and try. They should not let the fear of failure hold them back. With the right attitude and determination; nothing cannot be achieved.

The post One on One With A Young Ghanaian Businessman, Shoemaker appeared first on Ventures Africa | .

Last year, I did a feature on Ludwick Marishane, the CEO of Headboy Industries. Ludwick is the brain behind DryBath™, the world’s first and only bath-substituting skin gel, which he invented in 2008 while he was still an undergraduate. His invention won him the Global Student Entrepreneurship Award (GSEA) at the Global Entrepreneur Week (GEW) for two consecutive years (2010 and 2011). To mark this year’s event; Marishane’s company, DryBath™, is organising a no-bath weekend to encourage water management (saving).

In this interview, Ludwick talks about his company role in marking the international year of water cooperation, the essence of saving water in this modern age, his business challenges, lesson learned, and his future plans,

VA: Please tell us about yourself (aside being the CEO of Headboy Industries) – your background, hobby, fond memories?

LM: I’m a recent graduate from the University of Cape Town. I grew up in both rural Limpopo and Johannesburg, so I have experience on both sides of the income-level fence. My hobbies include critically analysing movies, hiking, and reading philosophy and psychology books. My fondest memory was when my baby brother was born. I had been an only child for 17 years, but nothing was more exciting than having him come into my life.

VA: 2013 is the international year of water cooperation, what is your company doing to mark this event?

LM: We were not aware of the theme given to the year, but we had already decided to launch our first DryBath™ No Bathing Weekend in July this year. While developing our campaign, we became aware of the year’s theme and realised the great possibility for synergies.

VA: What is this year’s theme for the project and what is the synergy between it and your plan?

LM: 2013 is the United Nations International Year of Water Cooperation, focusing attention on the importance of freshwater and advocating for the sustainable management of freshwater resources. It also focuses on how the world’s aqua-system is used to benefit humanity in a sustainable manner. We believe DryBath can play an integral part in assisting society to achieve that objective.

VA: You are organising a no-bath weekend from 5 to 7 July which will coincide with the fourth anniversary of the invention of DryBath™ and the celebration of this year’s international World water day; what does your company aim to achieve with this programme and how hygienic is the idea of not bathing?

LM: Our personal goal is to get people to skip 10 million baths this year, but our campaign goal is placed at a modest 1 million baths. We want to make people aware of the wasteful act of unnecessary daily bathing, and we’d also like to bring awareness to the adverse health effects of too much bathing.

If you research the history of bathing, you’ll realise that daily bathing only became prevalent in the 40s as a way to practice good hygiene for those who did heavy physical labour. We have abused that practice and now bathe two or more times a day. This has lead to our skins becoming sensitized by all the purifying chemicals in the water, and that’s why every new skin lotion is always touted to be twice as moisturising as the last. We bathe all the time and try to repair that damage with expensive lotions which we shouldn’t need in the first place. We want companies and communities to get involved with the campaign.

VA: Your goal is to get at least 10-million people to hygienically skip a bath once a week during 2013, why is saving water crucial in this generation?

LM: Some popular research theorises that water-shortages will reach extreme levels from the year 2030, and I believe that “wars” will be fought over water in a similar way to how they have fought over oil. I’m far from a believer in climate change, but the scarcity of water is a very real problem, and it is something that is far removed from the citizen of a developed economy, but can be the difference between life and death for a person at the bottom of the pyramid.

VA: Tell us about your product, DryBath™, and what it does? What is the inspiration behind formulating this product?

LM: DryBath™ is the world’s first and only bath-substituting skin gel. You simply put it on your skin instead of bathing, and it will provide you with a cleansing effect that mimics the effectiveness of bathing. It won’t feel as great as bathing, but it will sure leave you feeling fresh.

I invented the product in high school when a friend didn’t want to bathe. As a teenage boy, I knew I wasn’t a fan of bathing, mainly because I found it tedious sometimes, but also because I liked the smell of my body’s natural pheromones.

VA: How has your growing up in Motetema influenced creating DryBath™?

LM: I moved to Motetema in the 9th grade – a move which gave me great anxiety because I was turning my back on a great Catholic school and the advantaged lifestyle I had with my dad in Johannesburg. In retrospect, the move to Motetema was the most important decision I made at that age, and living there really gave my life purpose by showing me how much change was still needed in the world.

Headboy Industries aim to become Africa’s most innovative conglomerate, making products that improve society, how far has your company come along since it officially began operations in 2008?

We’ve completed the development and commercialisation of DryBath™. We have spent the last two years developing the world’s first entrepreneurship league, we plan to take it live in 2014 and we already have partners in Russia that want to replicate it there. The company is profitable and we expect revenues to triple this year.

VA: Shed some light on the development of the world’s first entrepreneurship league

LM: The entrepreneurship league is going under the name of the “Art of Business Challenge (ABC)”. It is a youth development enterprise that leverages the youth’s interest, advertisers who are dying to reach the 15-24 age-group, and the low entrepreneurial drive within society’s youth. It is going to be teaching youth stuff they can’t learn in a classroom, and we aim to make the process more entertaining for the television spectator than the FIFA World Cup. The league has been under development for 2 years now.

(You may view Marishane’s short presentation of how it works here)

VA: I read somewhere that DryBath™ is manufactured commercially for clients such as hotels, music festival organisers, major global airlines and governments for soldiers in the field but it is not yet available for consumer use; why is this and when will this be made available for consumer use?

LM: We have realised that our team is not passionate about the retail side of business, and we also didn’t have the capital necessary to service the household consumers with the quality we would want them to have. We have started negotiating distribution deals for countries all over the world, and we will be choosing great partners who can sell the product to the retail consumer. Selling to corporate organisations has been our main priority because our value proposition to them allows us to donate sachets to charity.

VA: How have you been able to market a novel product to the public?

LM: People’s general attitude to bathing has been very entertaining to us. Our surveys revealed that almost everyone finds it tedious sometimes, but society’s general attitude is that not-bathing is a taboo thing to do. On average, people already skip bathing once a week, but they feel very guilty about it. DryBath™ allows these people to have a very convenient substitute without the guilt of feeling dirty for not bathing. Our marketing has been very frank and has aimed to make everyone become more accepting, if not enthusiastic, about skipping baths.

VA: What challenge(s) did you face marketing DryBath™/getting the product accepted and how far have you come with these challenges?

LM: We had a great deal of difficulty in designating the product into a category. Being a new health care product, we had to decide if it was a medicine (which would require clinical trials, etc), or if it was a cosmetic. After consulting with the authorities, the final designation was “cosmetic”, and that has really made it simpler for us to distribute the product worldwide. Customers still find it hard to get the concept in their heads, and we have decided to produce marketing videos to help with that, but we have noticed that detractors often change their mind about the product after the concept has lingered in their minds for a week or two.

VA: You have experienced some failures and challenges as a young entrepreneur/innovator before achieving success with the creation of DryBath™. Can you share some of these failures and how has this experience help you in your present business venture?

LM: My journey has been riddled with projects that were too big for me, too resource-intensive, and those which were too early for society. I invented a healthy cigarette in the 10th grade, but realised I didn’t have the resources to take on the tobacco industry. I failed to become South Africa’s biodiesel baron in the 9th grade because I was too young, and I authored a mobile dictionary and magazine supplement which society just wasn’t ready to publish.

However, with each entrepreneurial failure, I learned skills that optimized me for future opportunities. I also think DryBath hasn’t finished its journey yet, and that it may still fail at some point in the near future, but it has taught me business skills that will make my next venture an even bigger success.

VA: You are/were a student social entrepreneur who has combined schooling with entrepreneurship. How practical is this and does your academic discipline play a role in managing your business, Headboy Inc?

LM: I think the best time to get a business off the ground is while you’re still a student, being at university was a great incubation phase for the company and I. I studied a commerce degree, so the learning definitely added substantial value to the business. Being a student entrepreneur also posed a difficult challenge, but I found that the more I worked on the business, the better I did at school because the work ethics translated well between the two.

VA: As a student, how did you get the start-up fund for your product and what advise will you give young entrepreneur in getting start-up funds?

LM: I was rejected by all the venture capital firms, and I had no security to secure a loan from any bank. However, I did enter business plan competitions, and I quickly realised that they were the best way to raise funds for my business. I raised over $50, 000 from competitions, and they also provided valuable media attention, access to potential clients, and validation for the company and product.

VA: You have served as an intern with Goldman Sachs, operate as campus ambassador for Google (among other internship) and you were once the Global Student Entrepreneur of the Year; how far has these internships and accolades help you as a young entrepreneur/innovator?

LM: The Goldman Sachs internship was my first job ever, and it made me realise how much I hated being an employee. It was a great opportunity to be in London during summer, and I got to work with some of the sharpest minds in the world. The work we did gave me insight into securities sales & how I might do an IPO one day. The other internships were in start-ups generally, and they felt more aligned with my way of working. All in all, the internships and awards have added substantially to my network, and I often tell my mentees that an entrepreneurs’ network must be more valuable than their business, otherwise it becomes useless.

VA: What do you think young entrepreneurs should emulate when they are starting their business?

LM: The most important skill you need to cultivate is the ability to teach yourself things very quickly, and to fail very quickly in order to learn. If you work on something you’re truly passionate about and have social support for the work you’re doing, the rest sorts itself out.

VA: What are your future plans for the business?

LM: We plan to launch even more long-term products to the market and change the world one product at a time.

VA: Any word for young entrepreneurs that may/are following in your footsteps?

LM: Do it for the love of power…the power to control your life, the power to change society, and most of all; the power to live your dream. If you don’t feel like pursuing that power, then you’re not working hard enough.

Let’s hear your opinion on DryBath™. Follow us on Twitter @Venturesafrica /leave your comments below.

The post A Young African Entrepreneur And His Water Saving Business appeared first on Ventures Africa | .

VENTURES AFRICA – There’s a new dollar-billionaire on the block, and he’s Nigerian.

Jim Ovia, 58, made his fortune providing financial services to Nigeria’s richest middle class. He is the founder and largest individual shareholder of Zenith Bank, a $4.5 billion (Market Cap) financial services conglomerate after a successful stint in finance in the United States.

Banking was always in Jim Ovia’s blood. Even before he completed his Bachelor’s degree in Business Administration from Southern University Louisiana as a teenager in 1977, he had already enjoyed a stint as a clerk in Barclays Bank, DCO (which now operates under the name, Union Bank). After obtaining his MBA from NorthEast Louisiana University in the United States in 1979, he joined International Merchant Bank as a financial analyst, subsequently rising to become a senior manager in 1987.

In 1990, he co-founded Zenith Bank in Nigeria. Within two decades, Ovia transformed Zenith from a small commercial bank into a fully-fledged financial services conglomerate with operations in Investment, Private and retail banking, staff strength of close to 4,000 people and assets in excess of $8 billion. He was Chief Executive of the bank from 1990 to 2010 when he was compelled by the Central Bank of Nigeria to step down following a directive limiting the tenure of bank chiefs to 10 years.

But Jim Ovia is still the largest individual shareholder of the publicly-listed bank. Through his own name, Ovia owns over 2.7 billion shares (which translate to an 8.75 percent stake in the bank). That stake is currently worth over $360 million.

In 2007, while he was still serving as CEO of Zenith, Ovia founded Visafone - a Nigerian mobile and fixed telecommunications provider. Visafone has become a runaway success. The firm has amassed a subscriber base of about 4 million and is worth at least $400 million according to data compiled by VENTURES AFRICA’s Intelligence unit and our Investment Banking analysts. Jim Ovia owns the company completely. Add these to Ovia’s ridiculously expansive real estate portfolio consisting of dozens of landmark commercial and residential properties in some of Nigeria’s swankiest neighbourhoods (such as The Civic Center in Victoria Island, Lagos) and Aquamarine, an exclusive boat club catering to Nigeria’s richest folks and Jim Ovia is conservatively worth $1.1 billion. By VENTURES AFRICA’s estimates, Jim Ovia is the fourth Nigerian to legitimately attain USD billionaire status after Aliko Dangote, Mike Adenuga and Folorunsho Alakija.

The Nigerian billionaire shows no signs of slowing down. Last November, Ovia’s newly-formed Quantum Luxury Properties signed a multi-million dollar deal with Marriott- the New York-based global hotel group to develop a 150- room five star hotel on the Ozumba Mbadiwe Waterfront in elitist Victoria-Island, Lagos. Construction of the property is expected to kick off later this year.

Ovia is as philanthropic as he is wealthy. Last year, he donated $6.3 million to assist the Nigerian government in its relief efforts for the rehabilitation of victims of the various flood disasters across Nigeria last year. He also runs the Youth Empowerment & ICT Foundation, a non-governmental organization which encourages young Nigerians to embrace information & communication technology (ICT) as a tool for socio-economic change.

Jim Ovia refused to return phone calls to discuss his wealth.

Follow us on Twitter @Venturesafrica

The post Africa’s Hidden Billionaires: Nigerian Banker Reaches Zenith With $1 Billion Fortune appeared first on Ventures Africa | .

According to a local newspaper The Nation, the Nigerian billionaire businessman announced the donation shortly after the team’s 1-0 victory over Burkina Faso’s Stallions.

Adenuga gave the team’s coach Stephen Keshi, $200,000 cash. He also said that he would take over the payment of Keshi’s 5 million naira ($32,000) salary from March.

Africa’s richest man Alhaji Aliko Dangote earlier gave Super Eagles 130 million naira ($827,000), and promised more donations should the team win the African tournament.

The Nigerian president Goodluck Jonathan, will also host the team on Tuesday at the Presidential Villa, where it is expected the government would reward the team members.

Globacom (GLO) Chairman Mike Adenuga, has been an avid supporter of Nigerian football over the years. His telecom company revived Nigeria’s professional football league after signing several multimillion dollar deals to be the official sponsor of the league almost a decade back.

In 2012, GLO reiterated its commitment to Nigeria Premier League (NPL) with a $2.3 million signing.

The post Billionaire Mike Adenuga Rewards Super Eagles With $1m 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.

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