VENTURES AFRICA – The political instability in Egypt and neighbouring countries has hindered the influx of investment. Businesses’ are nervous about the political outlook and this has aggravated worries about Egypt’s infrastructure and regulation.

Nevertheless, Egypt offers longstanding benefits for both local and international companies. And it is possible to cut through or minimise the infrastructure problems and political risk. So despite the challenges, there remain compelling reasons for doing business there.

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These two Tunisians are part of a changing mentality. A growing fitness-oriented culture is emerging across the continent. Fitness is not new to Africa. Ethiopia hangs its pride on its long distance running culture and the results delivered by that culture in the Olympics. But the continent has never been known for an active exercise culture. Yet over the last 5 years, bigger and more professional gyms have powered their way into the market.

Searching for a moderately priced gym in Mozambique implores a change in the definition of ‘moderately priced.’ Local neighbourhood gyms sell memberships for about $40 to $50 per month but lack equipment, especially elliptical machines and bikes favoured by most gym-goers. Newer gyms sell memberships for about $100 to $130 per month and provide a noticeably wider amount of equipment and weights. But these gyms are not offering the extent of amenities and equipment expected in America and Europe for a similar or even lesser price. Still these facilities are filling up day and night. And it is not because of the local fixation on Brazilian novelas and a growing culture of sexy clothes and tiny bikinis.

Investors are slowly asking questions about the potential of fitness chains for Africa. South Africa provides an insight into the potential. Sixty-one percent of the South African population is overweight. Dialogue around lifestyles in the country change slowly and push the need for a more active population. Virgin Active’s chain of gyms have captured this change. The company plans to expand with 8 more facilities. Bodybuilding has also grown at a rapid rate in South Africa. Experts estimate that nutritional supplement spending in total value has slowed in growth because the South African market is saturated with brands. But these same experts predict that other African countries will deliver new opportunities.

The Kenya Bodybuilding Federation (KBBF) represents the growing popularity of bodybuilding in the country. Nairobi is slowly becoming home to one of Africa’s largest gym going communities. From one matatu (name giving to local Kenyan minibuses around the city) to another you make your way from home to gym to work to gym to home each day, says John standing outside Premier Fitness Center. John is not alone as Kenyans push their way through the sidewalk to the gym. Abidjan recently hosted the Open West Africa Bodybuilding competition in March. Harare hosted All Africa Olympia for 2012, featuring both women and men. It is not just bodybuilding, John continues, but it is more a growing culture of getting healthy. He is not wrong as more women wait anxiously to use the elliptical machines.

The emergence of these cultures bids well for the young fitness sector across Africa. Yearly memberships surpassing $1000 in countries where per capita GDP is just above $500 speaks to the rapidly expanding consumer demand. But the expansion of any African fitness chain requires more strategy, networks and capital not so readily available in most countries.

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Construction sites scattered amongst a bustling downtown that resembles Johannesburg right before it became the financial power of Africa. Windhoek is not Africa’s next financial powerhouse. Or, at least, there is no sign of it at the moment. Namibia has all the good and bad remnants from South Africa’s 75 year rule over it. Namibia and South Africa share similar literacy rates and businesses. Good infrastructure supports the country’s small population.

On the contrary, the Namibia also inherited an unequal society that continues to grow a greater divide. The Gini coefficient places Namibia’s inequality in the top one percent. About one in three Namibians live on less than $1.25 a day. Unemployment still hovers around 50 percent and the HIV/AIDS rate, while dropping, is still above 13 percent. Namibia has an underwhelming welfare system and is struggling to meet the demands of trade unions.

The potential of natural resources continues to bring hope especially for a population of 2.2 million, one-twenty-fifth the size of South Africa. The discovery of large oil reserves almost two years ago still creates a buzz on the streets. Namibia is the hidden gem or unspoken country in the emerging African oil & gas conversation, says one government insider, but we like it that way.

Namibia also is the world’s fourth-largest producer of uranium. It produces a large quantity of zinc and a moderate amount of gold among other minerals. Foreign investors are coming to the country with an interest in commodities trading, says Kela, owner of Cutting Edge Enterprises. A growing amount of consulting companies are coming online to help facilitate the interest of foreign investors into the system. Foreign investment and trading will definitely help to create more employment opportunities for Namibians. But how much is unknown. Botswana’s approach to the diamond industry is definitely a model to consider, says a group of local business, as long as the government provides the rewards to the people.

The new consulting businesses also represent the changing small and medium enterprise (SME) landscape in the Namibian economy. More than 70 percent of businesses are very small and employ less than three persons. The new SMEs in Namibia will have to create more than three jobs. Consulting companies are a start. Manufacturing and mining have the greatest potential to create jobs in the SME space. But entrepreneurs still need more capital and government support.

The Development Bank of Namibia (DBN) is making its best efforts to provide loans to SMEs. Experts estimate that the DBN will not be able to provide more than $15 to 20 million to SMEs per year in the near future while the sector requires more than double that amount of capital. Private equity and venture capital firms will have to provide the remaining capital demand. The Deputy Minister of Trade and Industry Tjekero Tweya is strongly promoting this need for private capital investment and declaring the government’s readiness to work with newcomers to the country. Such talk signifies Namibia is ready to come from under the radar.

The post Discovering Africa: Under Radar With Namibia appeared first on Ventures Africa | .

By Marie-Soleil Frere

Better and wider access to Internet and mobile is changing how journalists work in the Democratic Republic of Congo (DRC), bringing more access but also sometimes greater risk. Internet and mobile devices allow journalists to contact multiple sources on a single day, something that was difficult until now in a country where fixed phone lines are almost non-existent. Internet and mobile also mean citizens are better able to contribute to media content and make their voices heard interactively. But they also create new opportunities for intimidating or silencing journalists. There are many in positions of authority and power whose status is shaken by the greater circulation of information made possible by connectivity. At the same time, alerting others when a journalist is under threat and rallying support has never been quicker. More information also means increased requirements for verification and fact checking—procedures that Congolese journalists have not always been inclined and trained to do. The annual report of Journalist in Danger, a Congolese non-governmental organization, offers insight on how ICTs have changed journalists’ practices and challenges in the country.

VENTURES AFRICA – In December 2012, Journalist in Danger (Journaliste en Danger), a Congolese NGO that defends media freedom, issued its latest annual report. As well as describing many attacks on journalists over the previous year, the report shows how much mobile phones and the Internet have transformed the daily work of Congolese journalists. Journalists now are more connected to people, places, facts and opinions that were often closed off to them before this new technology became more widespread. The DRC remains one of the least connected countries in the world, but even the small foothold made by this technology is having a significant impact. This greater access also brings greater risk for the DRC’s journalists and most cases examined by Journaliste en Danger involve these new communication tools.

The astonishing impact of mobile phones was seen, for instance, in March 2012, during an open-mike radio program on Radio Television Kindu Maniema, in eastern DRC. The show hosted by Mira Dipenge and called “Voice to the People” (“Parole au Peuple”), allowed callers, many using mobile phones, a forum to discuss and often criticize life under the Governor of Maniema Province, Tutu Salumu. These open mike programs and talk shows have benefited hugely from the spread of mobile phones, making it possible for people in areas without fixed lines to join in the programs. The free and open exchange the progam allowed did not go unnoticed and now Dipenge, the program’s host, has been forced into hiding after receiving threats.

Mobile phones have also facilitated access to information, allowing local journalists to reach sources they would never have been able to connect to a few years ago. On August 4 2012 Radio Soleil (Sun Radio), in Butembo, was suspended by the mayor after broadcasting a telephone interview with the spokesperson for the M23 rebels. The mayor claimed this interview violated the broadcasting regulator’s ban on radio stations in DRC from taking any calls about the war in Eastern Congo.

Mobile devices are not the only tools that are changing journalists’ daily work; social media plays a role as well and not always a positive one. On July 26 2012, a threatening message was posted on the Facebook wall of Tuver Wundi, a correspondent for National Congolese Radio and Television (RTNC), based in Goma. Also posted on the rebels’ website, the message accused Wundi of being “anti-M23” and warned him not to be around if and when they captured Goma. Journaliste en Danger evacuated Wundi to Kinshasa before the M23 took Goma in November 2012. After the rebels withdrew, he returned to Goma, where is now working normally.

Better Information and Communications Technology is providing a voice and a platform to once unheard DRC citizens. The audience becomes the news provider. In September 2012, a member of parliament (MP) directly threatened a television journalist, Roland Isso, who had broadcast mobile-phone video—sent in anonymously—that showed the MP openly calling his supporters to attack policemen who were guarding the property of a businessman with whom the MP had a dispute over property. (Isso works for Molière TV, which specializes in unedited video of eye-catching events around Kinshasa, caught by its roaming journalists or members of the public, and broadcast with little concern for privacy or professional ethics.) The MP subsequently denied any involvement in the death threats and announced that he would bring a libel action against Isso.

While they facilitate journalists’ access to information, these new tools also expose them to other dangers such as manipulation. “Journalists are now forced into doing the job of verifying, cross-checking and analyzing information,” explains Thsivis Tshivuadi, the secretary general of Journaliste en Danger. “Before, their job was mainly to provide information, but now that any citizen can access such a huge number of sources and even produce data, the role of the journalist is to discriminate between reliable and unreliable stories.”

These new tools also help to improve the journalists’ security, by speeding up the circulation of information when one of them is in trouble. Ten years ago, Journaliste en Danger had to transmit its alerts and reports about journalists’ rights abuses by fax, and the information could only be sent to a very limited number of targets because of the high cost of fax transmission.

Today, every attack on media freedom in the DRC is immediately relayed to thousands of subscribers who receive Journaliste en Danger alerts. Any journalist who is arrested or physically attacked makes his last phone call to Journaliste en Danger before their phone is confiscated. “This has changed our job too,” says Tshivuadi. “More and more we have to interact directly, by mobile phone, with the people who are detaining or threatening journalists. We can talk to the policemen or army men and try to convince them to release a colleague who was arrested while taking pictures or shooting video. We have become long-distance mediators.”

While the email alerts mainly go to foreign recipients, Journaliste en Danger has also developed a mobile service which is received by some 700 individuals inside the country, including diplomats, senior officials and major NGOs. On March 11 2013, when the Ministry of Post, Telecommunications and ICTs announced that nine broadcasters were suspended for not paying their annual broadcasting fees, Journaliste en Danger sounded the alarm. “The first SMS recipient to call me back was the Minister himself,” explains Tshivuadi. “He is on our distribution list and felt embarrassed, and he wanted to justify his decision.”

For Congolese journalists, Information and Communication Technologies have become a source of empowerment, helping them to open up and connect to the world, while they reshape their working practices. Organizations like Journaliste en Danger can provide support and protection for journalists as they navigate this new and challenging environment.

The post Internet Brings Unprecedented Access, Reach And Threats To Journalists In Congo appeared first on Ventures Africa | .

Insight of the subject of capital as a factor for growth particularly limited. Basic economics teaches capital as a factor of production among land and labour. Capital has over the years been often described as money but knowledge and practice of this age has moved far from that. It now has types which include – human, social, infrastructural, institutional, security, information and financial capital. In considering these forms of capital, in the context of a nation, we will nexus them to their influence on national development.

Human capital

This relates to the extent to which every individual in a nation is realising their potential. It includes the advancement of individual skill, knowledge, talent and ability that influences personal, social and economic wellbeing. The underlying factor here is capacity development with consistency. Thus the growth of a nation can be measured by its human capital development.

Social capital

The quality of relationships amongst a diverse citizenry in a country with link to standards of mutuality and trust also plays a huge role in national development. Social capital is simply trust, which ultimately enhances other types of capital. This has the capacity to enhance speedy growth with less suspicion as it reduces corruption and crime. The main values of social capital have been described as trust, value system, sense of community and solidarity.

Infrastructural capital

It is a no brainer to contend with the possibilities proper infrastructure brings to a economy. Infrastructures such as power, transportation, friendly environment, government policies and laws influences development of enterprises and facilitation of growth. Commerce may survive without adequate infrastructure but will certainly boom with the provision of such. Also the cost of running business and individual sustenance is minimized. The absence of infrastructure can and has hindered growth across Africa, and in the 21st century the onus is on African government and the private sector to ensure the provision of necessary infrastructure that will spur the economy.

Institutional capital

This may be described as the guide of the nation which regulates the socially and culturally permissible behaviour that should be followed. Institutions dictate and enforce compliance on activities within the nation – consciously and unconsciously. The absence of this will create chaos in all areas of national existence. as the efficacy of institutional capital ensures that the objectives of projects, programmes and policies are met.

Security capital

This may be viewed in two perspectives – regime of government with sustainable policies on the one hand and physical security of the state on the other. Both local and foreign players in the economy are either skeptical or encouraged by policies of the government. It may also take the form of a government sustaining the progressive policies of previous administration(s). This should be based on objective test rather than subjective.

Physical security of the environment is a capital that cannot be overlooked. People and ventures thrive more in a secure environment. It cannot be overemphasised what a nation like Nigeria has lost to insecurity problems.

Information capital

This asserts information as an intrinsic value which can be shared and leveraged on to enhance growth. It means sharing information is sharing power. It enables the exchange of knowledge for advancement. Information capital emphasises decision making based on best available option. No individual, organisation or nation will function better than the level of information it is exposed to.

Financial capital

We have saved the big dog for the last. Financial capital, which is mostly been perceived as the only capital, is the money available for ventures to invest in products or services in sectors of the economy. The availability of financial capital makes ideas handy and thrive. This may extend to available credit facilities from financial institutions with special emphasis on fair interest rate. Other forms of capital mentioned will function at their optimum when financial capital meets them working effectively and efficiently in an economy.

In this era, capital transcends money. Nigeria, and indeed other African countries need to maximize all forms of capital towards national development. All of these forms of capital are important but I like to emphasise attention to Human, Social and Institutional capital. These are the major drivers of development in any nation. They have multiplier effect on the nation with the presence of all others.

Leading the maximum utility of capital as a veritable tool for national development should be led by the government. Some corporate organisations practice the use of capital beyond money and it has translated into development and growth. But for capital of all forms to have far reaching effect on the nation, all hands must be on deck and ultimately, national development will become a national experience.

The post Tips On Maximising Capital For National Development appeared first on Ventures Africa | .

What is the role of a university? Yes, it is to educate but that is not the only role of a university and some might argue that that is slightly less than 50 percent of the role of a university. In addition to educating, the developmental role of a university is creation. Further than simply learning centers, universities are also centers of inspiration to create and push the boundaries of our cumulative knowledge. In Africa, there are fourteen noble laureates. Eleven of them were recognized for their work in either literature or promoting a more peaceful Africa. Both of which, although admirable and desirable are less dependent on the quality of a tertiary education. The other three Nobel Laureates are South Africans. In three different years, these three different South Africans were recognized for their contributions to Medicine and Physiology and none of their groundbreaking work was done in any institution in Africa. They currently represent the closest to a dent the entire African continent has been recognized for making in a hard science.

Currently, every known resource available to generate electricity in commercial quantities is available on the African continent. Although the resources are not evenly spread through out every country, the fact that all African countries belong to at least one economic bloc means in theory, they are able to reap the benefits of the resource anywhere within their bloc. Resource blessed-geographically; economically by virtue of economic blocs; and population wise to drive the demand, yet, the continent only accounts for 4 percent of world electricity output. 75 percent of this 4 percent are generated in South Africa, Egypt and other countries along the North African littoral region. With barely any electricity, how do we expect any kind of access to emerging technologies- Information technology, Biotechnology, Micro technology and Communication technology that have revolutionized the socio economic development of other nations? Even in these abysmal situation, information and communication technology have been able to thrive. Private investment and capital have spurned success in the form of MTN, Multi Choice and the likes. Only few governments like that of South Africa and Kenya have made a concerted effort to pursue an IT agenda.

The fact of the matter is we currently live in a digital age and every aspect of our lives are getting more influenced by the digital age and it is moving fast. It is imperative that as Africans we catch up now or continue to allow the development gap to be widened. Catching up is only possible with infrastructure for empowering educations and legislature that allows for the rapid development of key industries like power, technology. It is one thing to loot and run governments with no kind of accountability, but a rather large, well defined line is crossed when reckless abandon dictates education and private sector development in any nation.

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I am sure that just as hard as writing this article was, I speak for all parents of children on the autism spectrum. We cannot introduce you to someone with autism, this would mean introducing you to an estimated global statistic of approximately 43 400 000 people. (Ratio calculated based on average of 62 cases per 10 000 people out of global population of 7 billion people). This statistic cannot be conclusively accepted, but is calculated on actual CDC (Centre for Communicable Diseases – US and applied globally). As such, these extrapolations may be highly inaccurate (especially for developing or third-world countries). Autism is a developmental disorder which usually manifests in early childhood, especially these days. Children with autism exhibit distinct repetitive behavioural patterns and interests, mannerisms, and obvious deficits in communication and social interaction.

According to globalhealthafrica.org the earliest research on autism in Africa was carried out by Victor Lotter as far back as 1978. His research was carried out in 6 African countries. The result of his research was a low prevalence of autism. However, evidence suggests his research methods appeared may have been flawed. Since then, not sufficient African-based studies on Autism has been carried out on this disorder. The prevalence rate in the various countries on the continent is unknown. Outside the African continent, it has been observed that children born to Africans immigrants in Europe exhibit a higher prevalence of autism compared to the indigenous population.

Some are able to live relatively normal everyday lives, while others will require a lifetime of specialist support. Most scientists agree that autism is a genetic disorder. In rare cases, it has been associated with birth defects caused by agents such as heavy metals and pesticides.

Identifying Autism – Your Checklist

Identifying autism as early in life as possible increases the chances of being treated sooner, which improves a child’s subsequent learning and development. A new checklist that only takes five minutes for parents to complete at doctor’s waiting rooms might well help do this, researchers from the University of California, San Diego, reported in the Journal of Paediatrics.

Autism in Africa is also plagued by cultural perceptions of witchcraft, where in some instances children and adults have been mutilated and killed. Awareness programmes, access to medication, access to medical treatment, counselling for parents and family members can literally be regarded as minimal within the African context.

There is a need for research to be carried out to determine the burden of Autism in Africa.

For many parents, this road is a nightmare. Accepting that your child probably has less chance of being “normal” is a pretty hard fact to absorb, internalise and accept.

The heart-breaking reality is that for many parents, today they are enjoying their child starting out with their first attempt at words, some a bit further on, looking at their parents for affirmation – to nothing. No talking and no eye contact. This reality takes your breath away in so many ways and leaves a constant reality of despair.

Prevalence: Hard Facts

STATISTICS & FACTS – South Africa (http://awc.worldwidecreative.co.za )

* Autism affects 1 in 86 South African children under the age of 6 years.

* Autism is 4 times more prevelant in boys than girls.

* Autism has been found throughout the world in families of all racial, ethnic and social backgrounds.

Above statistics are according to International statistics as no statistics are currently available in South Africa.

South African Statistics (WESTERN CAPE)

Currently there are 104 children on the waiting list for schools with Autism. The Department of Health have reported an estimated increase over the last 5 years of 500%. Currently approximately 10 children per week are being diagnosed at Red Cross Children’s Hospital, Lentegeur and Tygerberg Hospitals. This excludes children that are being diagnosed through private practise.

USA – The USA has literally recorded the increase in autism as the highest rate of prevalence than any other disease in their country (CDC).

U.S. kids and autism

• Overall: 1 in 88 U.S. kids have autism; up 78 percent from 2002
• Total: Estimated 1,000,000 children with autism
• Boys: 1 in 54; up 82% from 2002
• Girls: 1 in 252; up 63% from 2002
• Non-Hispanic white children: 1 in 83; up 70 percent from 2002
• Non-Hispanic black children: 1 in 98; up 91 percent from 2002
• Hispanic children: 1 in 127; up 110 percent from 2002
• Symptoms typically apparent before age 3

The post Autism: A Generation Of Heart-Break, Research, Love And Hope appeared first on Ventures Africa | .

There is always one story, several parties to blame and nothing gets done, but alas we all know this story! All that notwithstanding, the fact of the matter is development is a very expensive concept and it gets more expensive when put in practice. The resources available for an idea are finite but the development of that idea infinite. These resources get progressively smaller the closer to execution of the idea. The most well-intentioned national government still have to deal with the politics of municipal governments, interest groups, citizens and international scrutiny whenever development agendas have to be pushed through.

There is dearth of infrastructure in Africa. Our roads and rail network are poor, though its only fair to commend southern African countries on their steadily improved transportation networks. None of the ports in Africa are able to perform at the same level as the likes of Hong Kong or Amsterdam yet we have bigger coastal cities with enough resources to move; and strategically located to be a major transit point. Suffice to say, a major component of economic and social development, which is mobility, is not being catered to by most African national governments. While we already acknowledged the staggering cost of these projects, the resources available to governments are routinely squandered with no kind of accountability.

Consequently, we have an ongoing system of lack of accountability and transparency in economies not robust enough for public sector to single handedly drive development across the board. Public Private Partnerships (PPP) offer a tested and proven solution to this problem. The South African National Treasury defines a PPP as a long-term contractual agreement between public sector and a private party wherein the private party assumes substantial financial, technical and operational risk in the design, financing, building and operation of a project. Summarily, using well developed PPP’s as drivers for implementation of development projects, governments are able to leverage on private sector efficiencies; shift the cost of development projects to private sector while allowing them recoup their cost through long term concessions; and most importantly offer quality services to citizens even if they are paying for it.

There is a long list of successful PPP’s especially in South Africa. The N4 Toll road from Witibank, South Africa to Maputo, Mozambique cost R3 billion ($324 million) by 1996 estimates is an example of a successful road project PPP with a 30 year concession period. This project involved the rehabilitation including construction of new road of 198km road. Following the success of N4 Toll Road, the Mozambican National Ports and Railway Authority formed a joint venture with British Mersey Docks and Harbor Company for a 15 year concession to finance, rehabilitate, operate and upgrade the Maputo Ports in 2003. Following take over, there has been a steady increase in tonnage volume cleared at the port year-to-year. Similar agreements have been used to upgrade the ports of Dar-es-Salaam, Tanzania and Lekki expressway, Nigeria. The Guatrain Rapid Rail Link in South Africa is a perfect example of railroad PPP that has been a major success. This project was intended to ease traffic during the FIFA World Cup of 2010 in South Africa.

PPP’s are not without their drawbacks but once well-structured and implemented from conception stage they offer the best solution not just financially but including social benefit to most African countries especially in spite of constraints governments face. As much as there is a long list of successful PPP’s of various sizes and scales, there is also a long list of failed PPP’s. Like most projects, PPP’s rely on realistic projection of revenue stream, commitment and responsibility to the contracts for it to succeed. It is therefore important that in recognizing the wholesome opportunity and development benefit, governments should ensure that PPP’s are properly structured, the right company for the job is chosen and on their part, they stay committed to the project. After all, even PPP’s pay taxes to government coffers.

On paper, I do believe that PPP’s offer a viable solution to the challenge of infrastructural development. Although this has been a major issue In Africa, the bigger problem is how do we keep such a gem of an idea away from the tentacles of African politics. If some kind of body or ordinance is put in place to check the structures of PPP’s from conception to execution then this might infact be the magic bullet. In spite of social and development benefits of Lekki toll way, some Lagosians might disagree on the possibility of separating politics from PPP’s!

The post The Magic Bullet: Public Private Partnerships In Africa appeared first on Ventures Africa | .

It is important to quickly mention that different people have their perception of the Chinese experience. While some condemn some of the approaches to building their national wealth with international prominence, there is one that even though condemned, should never be ignored by any country aspiring to develop its economy: it is Aggressive Enterprise.

Edwards Tse started the first chapter of his book by stating Li Ning as one of China’s most recognizable faces. He shot to fame in 1984, winning six medals in gymnastics competitions at the Los Angeles Olympics, three of them gold. Since then, he has remained in the spotlight by becoming one of the country’s most successful businessmen as the owner of China’s largest sportswear company. The eponymous Li Ning brand has more than 7,550 retail outlets across the country and annual sales of more than $980 million.

The Li Ning Company Limited is still tiny compared with Nike and Adidas, whose global revenues in 2008 were $18.6 billion and $15.9 billion respectively. But Li Ning’s growth is faster; its global marketing, still in the beginning stages, includes sponsorships of major leagues in the United States, Argentina and Spain.

Then the 2008 Olympics went to Beijing. Li Ning was chosen to light the torch at the opening ceremonies in Beijing’s Bird Nest stadium, in front of a television audience of more than a billion viewers. The moment must have been particularly difficult for Adidas, which has spent a quarter billion dollars on Olympic sponsorship and marketing during the run-up of the games. Suddenly, here was not just one of China’s most famous Olympic gold medalist, but one of their leading business rivals- and a living symbol of the intent, ambition and competitive spirit of Chinese enterprise. In a handful of seconds, he stole the show from his western competitors.

More captivating to me is the next paragraph- “China has hundreds of thousands of Li Nings: entrepreneurs who have driven one of the fastest sustained national economic growth rates of any country in the world history. They may not all be as successful as Li. But after decades of being held back by their country’s adoption of socialism, they and the rest of the Chinese population are moving forward with the force of water gushing from a broken dam. The intensity of their aspirations, joined with the plans of the government and the presence of the country’s hundreds of millions of ordinary people, suggests that future developments in China will over-shadow even the momentous change in recent past- and in a way that affects the strategy, and even the identity of companies around the world (Italics mine).

From the foregoing, I like to stress …but one of their leading business rivals- and a living symbol of intent, ambition and competitive spirit of Chinese enterprise. An average Chinese has the spirit of enterprise and competition in the global economy. Another word that best describe the Chinese spirit of entrepreneurship is Aggression. This remains a truism.

While I join many others, particularly Development Economists who have pontificated the harm of globalisation and free trade economic policy by the world economic rules dictators, I must say that China has rather turned globalisation and free trade to its advantage. China has actually proved right the preaching of the proponents of free trade that openness is a veritable tool to economic prosperity.

As mentioned in a previous article, “A cursory look at the China’s approach with that of Nigeria reveals the Nigeria is also adopting Foreign Investment (through direct and portfolio investment) and the Local Content recipe.” Factually, one of the harm of free trade policy is such that a well industrialised country can freely export her goods (subject to duties) into a developing country which local market is struggling for survival. One should also bear in mind that a product processed with machine will produce more quantity and make consumer cost more affordable. This is one of the reasons why it is challenging for an average shirt maker in a country like Nigeria to compete with a global brand like TM Lewin. But China understands the fact that it takes aggression to be a player in the global economy and will settle for nothing in achieving this. Thus, the statement “tough times don’t last but tough people do” points to China and the result is quite obvious.

An average Nigerian shares this spirit of enterprise. Irrespective of the environmental frustrations, few still grow successful enterprises while major part of the population struggle to sustain their ventures. For millions of those who are unemployed, the spirit is also there but the challenge is where to engage the spirit. It is rather unfortunate that in the midst of so much economic potentials in the country, the youth who make up about 70 percent of the population (the core of the country) are substantially inactive.

Furthermore, Tse mentioned in his book that there are hundreds of thousands of Li Nings, entrepreneurs who have driven one of the fastest economic growth rate in the world. What readily came to mind is the imagination of hundreds of thousands of the likes of Aliko Dangote, Oba Otudeko, Mike Adenuga permeating every area of economic potential in Nigeria and their likes across the continent of Africa with huge turn-overs in their companies. Not only will the people never struggle with poverty, but the standard of living will greatly appreciate.

Nigeria should be able to focus on major field(s) for economic dominance, say I.T, Healthcare or tourism — a la the Indians. While I do not totally displace this kind of reasoning, I will say Nigeria is far blessed than that. Nigeria prior to the discovery of oil had earned so much from Agriculture and Mining. The advent of oil ran other sectors aground. If Nigeria has been so serious about becoming economically vibrant, adding the oil boom to the already thriving Agricultural, Mining and real sector would have quadrupled the nation’s GDP and Per Capita Income today with proof of good standard of living of the population. The use of technological advancement to facilitate production would have made a phenomenal impact in being a dominant player in the global economy.

According to Tse, after thirty years of opening and liberalizing its economy, nowhere else, not even among the mature markets of Japan, Europe, and the United States, offers the same extraordinary range of brands and products as China. For every drink, Chinese companies make their own versions of every international flavor- and many flavours that are not produced elsewhere. For magazines, there are Chinese editions of such familiar global titles as Cosmopolitan, Vogue, and Elle. Driving on the streets are locally manufactured vehicles from almost every global brand car maker General Motors (GM) and Ford, Toyota and Honda, Volkswagen (VW) and its subsidiary Audi, BMW and Mercedes, Citroen and Hyundai- plus a host of local auto brands, including Chery, Geely, Brilliance, and Great Wall.

Tse stated further that over the next decade to two, the presence of Chinese companies and expected to make restructuring more likely in a wide range of other industries- among them automotive, shipbuilding, chemicals, energy, information technology and, possibly aerospace. This is the aggressive spirit of enterprise: this is the China spirit! A country like Nigeria is and will continue to seriously shortchange itself by ignoring every other area of economic potential and remaining unimaginative, so to speak.

At this juncture, it is pertinent to consider the role of the government in the cause of economic prosperity of the nation. While some people have severally stressed the fact that the people can prosper in their ventures without waiting for the government, I have consistently maintained the fact that the people will prosper more in their ventures when the government vigorously play a pivotal role in the cause. The role of the government starts with a dynamic vision. Nations around the world that we so much admire and love to identify with had the emergence of economic prosperity with visionary leadership and planning. This is the story of Singapore, South Korea, China, Japan, UAE and even Indonesia.

It is never enough to have a vision without an action plan and drive to realise it. Having visionary leadership and the drive of accomplishment is most vital. The vision in context is not a generic one but to initiate and enforce all factors necessary to propel aggressive entrepreneurship to achieve national wealth. That is the kind of vision that transformed the nations listed earlier. This action plan may be contained in a National Development Plan. I refer to this article where I dealt with the subject of National Development Plan extensively.

Budget, laws, policies and decisions are made on strict compliance to the vision and action plan. This should include provision of infrastructural facilities, access to cheap credit, regulation of product standard, enforcement of local content law, review of impeding laws and policies that tend to frustrate development process among others. By these, the government would have successfully created an enabling environment that will help ventures to succeed. Beyond that, more people will be open to new ideas in untapped areas and resources.

Furthermore, the Government will be living up to the spirit of its constitutional responsibility as contained in Section 16 of the 1999 Constitution (as amended) viz: Section 16 (1) provides that the State shall, within the context of the ideals and objectives for which provisions are made in this Constitution:

(a) harness the resources of the nation and promote national prosperity and an efficient, a dynamic and self-reliant economy every citizen on the basis of social justice and equality of status and opportunity;

(b) control the national economy in such manner as to secure the maximum welfare, freedom and happiness of every citizen on the basis of social justice and equality of status and opportunity;

(c) without prejudice to its right to operate or participate in areas of the economy, other than the major sectors of the economy, manage and operate the major sectors of the economy;

(d) Without prejudice to the rights of any person to participate in areas of the economy within the major sector of the economy, protect the right of every citizen to engage in any economic activities outside the major sectors of the economy.

Subsection (2) of Section 16 states that the State shall direct its policy towards ensuring:

(a) the promotion of a planned and balanced economic development;

(b) that the material resources of the nation are harnessed and distributed as best as possible to serve the common good;

(c) that the economic system is not operated in such a manner as to permit the concentration of wealth or the means of production and exchange in the hands of few individuals or of a group; and

(d) that suitable and adequate shelter, suitable and adequate food, reasonable national minimum wage, old age care and pensions, and unemployment, sick benefits and welfare of the disabled are provided for all citizens.

To balance the responsibility in the cause of national economic prosperity, I should mention that we have a generation of people (young and old) who are not ready to go through the process, do the right thing the right way to get wealth. If we ask the government to re-organise its priority to building the nation’s economy, we should also be fair enough to re-organise our priorities and get ready to pay the required price to achieve sustained national development.

Conclusively, popular sayings; Nigeria is blessed by God, Nigeria is rich in resources, Nigeria has the brains and muscle to be a major player in the international community will remain lip service if we fail to notice that the time has come to take full responsibility and dedicate our all to realise our God-given potentials, and that the economic prosperity we crave will only follow suit after strategic implementation of developmental policies and full participation from citizens and government alike.

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VENTURES AFRICA – It’s no secret (now) that Dan Etete, a former Nigerian Oil Minister of the General Abacha regime, currently being convicted for Money Laundering in France, held secret dealings with Royal Dutch Shell and Italian Oil company Eni. ‘Over chilled wine‘ and lavish meals they deliberated over the OPL245 oil block in 2011. OPL245 has been the subject of controversy ever since it was awarded to Malabu in 1998, not least because Etete awarded the block to Malabu while being Petroleum Minister of Nigeria.

(But) Etete is widely believed to control Malabu, although he has denied being Malabu’s owner, maintaining in court that he was employed by the company as a consultant only after he left office. Etete had requested some initial figures from Shell on what it was willing to pay Malabu for OPL245; this we know from an email that Global witness intercepted and from the case High Court case, Energy Venture Partners v Malabu Oil & Gas, brought by an Nigerian Energy lawyer claiming default of payment for brokering the $1.1 billion deal for oil block OPL245 between Malabu and Shell Oil and Eni.

Global Witness believes that this was structured primarily as a way of allowing Shell and Eni to claim that it had not struck a deal with Etete (but the legal Principle of ‘Lifting the Veil ‘ proves otherwise).

Now the same Royal Dutch Shell is in support of a suit targeted at the scrapping of a landmark transparency and anti-corruption law established in the United States. ‘Strike out’ Section 1504 of the Dodd Frank Wall Street Reform and Consumer Protection Act (2010), which requires oil and mining companies that report to the SEC to publish the payments they make to governments to end secrecy in oil deals. Oil deals such as the one Dan Etete had kill the African Oil producing Economies because proceeds don’t benefit the citizens but rather goes to the already well lined pockets of such corrupt leaders; secretly unchallenged.

The lawsuit, brought by the American Petroleum Institute (API) and others against the US Securities Exchange Commission (SEC), threatens to strike down a vital mechanism to improve transparency, reduce corruption, mobilize revenue for development and transform millions of lives. It is also no secret that Angola threatened to throw out BP Shell when they released statements of how much they were making from oil in the country (read- Income statements).

This aggressive lawsuit aims to undo regulations agreed through a two-year democratic, participatory and transparent process, and to overturn a law that was six years in the making in U.S. Congress.

The only Oil company openly and formally not in support of the repeal of this law is Norway’s StatOil whose Corporate Social Responsibility Vice President , Baiba Rubesa stated just this in a letter which met the audacity of this suit with just as much Veracity. Mona Thowsen, secretary general of the Publish What You Pay campaign in Norway, stated, “the Norwegian government, as owners of Statoil, cannot be associated with supporting a lawsuit against transparency and democracy, whilst at the same time collaborating on Norwegian laws that may go further than the minimum standard now set in law in the U.S.”

Shell and a few others plan to attend the Oslo-hosted important board meeting of the Extractive Industries Transparency Initiative (EITI) this month, at which new voluntary rules for improved transparency in the extractive industries are under discussion; a contradiction of their actions as obviously seen in the above opening scenario.

In conclusion I would like to ask that African governments that have just found oil and coal deposits to:

- Verify what an oil company’s legal /policy is regarding matters of transparency, and to scrutinize and state this out rightly in the Initial oil company-government contract.

- Realise that overlooking such ‘small’ details can topple a government and an economy.

- Never ignore other sectors of the economy because of the oil find or boom; the curious case of Gambia (Please see the paper ‘ Oligopolies of war’ written by K. Omenye)

- Discuss the C.S.R aspects of the oil deal and put aspects of accountability in place.

- Stop treating energy issues with the lightness it doesn’t deserve and to train their staff particularly for that ministry. We have seen energy ministry staff go for ‘REDD’ meetings and not know what it was about – an epic fail for the economy.

- Understand what the change of an oil company’s local subsidiary means (legal implications) with regards to whether it’s an action /attempt at circumventing responsibility in the case of a suit.

Please note that information was sourced from the Official Global Witness.

*The views expressed are those of the writer.

Janet Murikira is a Kenyan energy law consultant. You can contact her at jmurikira@gmail.com

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