Saturday, November 11, 2006

Is Africa Cursed?

IN AN increasingly globalised architecture, post-colonial Africa remains at the bottom of the development ladder with its leaders groping for an ideological and developmental paradigm that can address the poverty trap and economic decay that confronts the continent.
Many have argued that Africa is cursed continent without explaining why God would be confused to endow the same geographical mass with a rich geology and resources that continue to attract the attention of both the West and East in equal measure.
It has also been argued that Africa’s problems lie in its people who are a cursed race whether they are domiciled in the continent or in the diaspora. Some have even gone so far as to suggest that the IQ of Africans is inferior to other racial groups. In locating Africans in the intellectual ladder, some have said that we rank as a collective at the bottom.
In attempting to explain the African economic and political quagmire, many have focused on Africa’s political leadership and its perceived lack of vision and the generally corrupt environment that is often rightly or wrongly associated with Africa’s elite. It is argued that Africa would be better off if its 53 leaders were to stand down in one day and yet it is not explained how the continent would be any different if its people’s eyes are not on the real developmental price. Having worked for a multilateral development institution, I am acutely conscious of the challenges that Africa and its people face in convincing the world to take us seriously as economic players. Africans are generally alienated from their resources and have not exhibited an ability to work together to resolve their problems.
The problem starts with the African address. Do Africans have an address? Who is an African? What defines an African? There is no consensus on the definition of an African. Are whites and Asians who have lived in Africa for generations Africans? Equally, are Africans who are in the diaspora whether voluntarily or involuntarily (as slaves) Africans? If we look at Africa’s infrastructural and institutional development, we find that countries in which the settler communities were in large numbers are generally more developed than those that were sparsely inhabited by colonialists. Equally, the post colonial era has not produced any significant transformation.
Notwithstanding the fact that a significant investment has been made in educating Africans, it is common cause that many of the educated Africans have chosen a western address as a theatre to apply their skills. In contrast, the European settler community that chose Africa as a home came with a purpose and they invested in an African address. Although in numbers they were much fewer than black Africans, they managed to maintain hegemony over the majority through a combination of an unjust political and economic order. What is inescapable is that they used their collective wisdom to build an infrastructure and institutions that were supportive of their civilization. They built European clubs and through such associations they invested in a networking framework that has endured even after they lost political power. What is clear is that we have not been able to support the post colonial environment with African institutions and also we have not been able to invest in our corporate civilization choosing to invest in political solutions only.
On the corporate front, black Africans are the majority in numbers and yet they have failed to convert their numbers into an economic force. If we look at Africa’s mining sector, we find little or no evidence of serious African players in the sector. Africa’s banking institutions are dominated by non-Africans and yet the consumers of banking services remain black in the majority. Those that have been privileged to get a good education, end up being arm chair revolutionaries blaming the whole white world and corrupt African leaders for the continent’s failure to deliver value to its citizens. We have not seen any serious attempt at building pan-African institutions by the black private sector in Africa. It is important to underscore that the colonial state did not create an environment that was tolerant of black capitalism and, therefore, some of us who now claim to be business people are conscious that without decolonization we would not have the privilege to talk about property rights. A new address was created for us to begin to talk about the kind of issues that transform societies.
However, it is also important to state that the role of black capital in Africa’s development is a contested issue and many of Africa’s leading intellectuals have failed to provide any leadership in terms of defining the role, if any, of black private capital in Africa’s development. We continue to hear that it is only the politicians who have failed Africa because they have no interest of the continent at heart and yet the same politicians are created by the public in many cases and in others they shoot themselves in state houses.
After almost 40 years of uhuru, Africa has not been able to establish a corporate address for its people. What is tragic is that unless an address is created that can act as a reference for existing and future generations, the ability of Africa to take ownership of its destiny will remain compromised. I have received many encouraging messages from the many who have read my articles. Equally I have been humbled by many who continue to ask me for help to finance their education and assist with their business endeavors. The same people are blind to the fact that on 7 September 2004, the government of Zimbabwe manufactured a law to nationalize my businesses and then proceeded to systematically disable me for ever challenging these draconian and illegal measures.
I have learnt to accept that people generally are not interested in other people’s problems but have an interest in ensuring that their interests are advanced. I took the decision in 1995, to incorporate a company, Africa Resources Limited (ARL), prior to moving to South Africa in response to what I saw as a gap in the relationship between African people and their resources. At the time, I had an option to set up a consortium but I decided that it was important to own the company 100% not because I wanted to monopolize the returns but because I saw Africa’s greatest challenge as that of institution building. Many business owners end up the loneliest people least understood by those close to them and yet selfless because the more they take from the business the less the business can grow.
Owners of businesses like Africans are at the bottom of the earning ladder as they are only entitled to dividends. Most of Africa’s best brains reside in intellectuals and professionals who would not want to be in the basement of the company in terms of earnings. They often prefer to get secure contracts while at the same time wanting to be owners. It is a challenge to get a crop of Africans who can discipline themselves and sacrifice their personal interests in building sustainable institutions. In my case, I chose not to declare dividends for the ten year period that I had interests in Zimbabwe before the invasion. How many of us would behave in a similar manner. The challenge I encountered among African professionals is that their primary preoccupation was on maximizing their personal wealth. There is nothing wrong in this but something has to give. For enterprise creation, Africa needs a new mindset and leadership.
In a sense, I am privileged to have been one of the few targeted by the Zimbabwean government. It is historic that a decree had to be promulgated to deal with my issue and the Zimbabwean parliament passed a law to allow the government to expropriate private assets without any regard to the constitution. This is a precedent that should be used as one of the case studies that Africans interested in business can use. My case is pregnant with many issues that should be of interest to any African interested in doing business in Africa. The African curse is in that we have refused to draw lessons from other people’s miseries in the belief that the same will not visit us. Through my case and those of others in Africa, we now know what we took for granted only yesterday i.e. the importance of the rule of law and the respect for property rights.
I have accepted with humility that some people look up to me for business guidance and it would be an abuse if I chose to retail my experiences i.e. deal with each individual at a time. I have chosen to wholesale my insights through my writings so that I can escape answering all the issues raised by the people who have generously responded to my articles. To this end, I helped found an organization, Africa Heritage Corporate Council (AHCC), whose URL address is: http://www.ahccouncil.com/. This is my new African address and I have decided to change my contact email to: mailto:mmawere@ahccouncil.comin the hope that all who are interested in better understanding the business challenges that Africa confronts can join us in creating a new address for transformation in Africa.
As living human beings, we are all actors and all we live on earth are stories of what we did. Africa needs a new identity that we can only help create in so far as business is concerned. Our appreciation of business and corporate civilization needs to be improved. We all have a collective responsibility to invest in this quest for a new identity. Yes most of us who choose to be in business are classified as crooks or cronies and never as principals in our own right. We need to build our own Bill Gates, Warren Buffet, Rupert Murdochs, Samsungs, Tata, Mittals, etc. It is never too late for Africa to wake up.
Finally, imagine one day people who share Africa’s heritage decided to buy airtime from one source. How big would our corporation be? How many of us use the phone as a medium of communication? If we could use our spent in a constructive manner, we could set up Africa Heritage Mobile (AHM) for instance and use this collective vehicle to buy bulk airtime from networks in individual countries. Through volume discounts we can create a new mobile bank. This can be done and should be done. We should not accept the proposition that we are cursed and yet we are blessed to be alive in these interesting times when our leaders are selling our mineral heritage to the East in the sincere belief that we are not capable of organizing ourselves. It is important that we show our leaders that we can organize and invest in a better Africa.
For those that believe in change during our time, I encourage you to join the AHCC and become part of this new family of Africans. It is important that you choose AHCC as your new address instead of using hotmail, yahoo, msn and others without applying your mind on whose address it is. We are allocating new email addresses for members and all you need to do is to inform us of your interest in the service. You also need to create your own online profile.
We have also created a window that allows you to tell us about your company. For professionals out there, it is important that we create institutions out of our new address. There is nothing to stop you creating Africa Heritage Law Society or Forum, Africa Heritage IT Forum, etc. We can create an Africa Heritage Corporate Council Volunteer Corps where we all can donate 20 hours per year to make a difference in Africa. We can also create geographically specific associations like the London Chapter of AHCC. We need to be creative like the founding fathers of America who came from different countries and yet chose America as their new address. Look what they created. Remember: “The only power people who do not have power is the power to organize”.
I attach herewith an email I got from a friend with a piece entitled: “Global Economic De-Mystified”.
1. SOCIALISM: You have 2 cows and you give one to your neighbour.
2. COMMUNISM: You have 2 cows, the Government takes both and gives you some milk.
3. FASCISM: You have 2 cows; the Government takes both and sells you some milk.
4. NAZISM: You have 2 cows. The Government takes both and shoots you.
5. BUREAUCRATISM: You have 2 cows; the Government takes both, shoots one, milks the other and throws the milk away...
6. TRADITIONAL CAPITALISM: You have two cows. You sell one and buy a bull. Your herd multiplies, and the economy grows. You sell them and retire on the income.
7. AN AMERICAN CORPORATION: You have two cows. You sell one, and force the other to produce the milk of four cows. Later, you hire a consultant to analyze why the cow dropped dead.
8. A FRENCH CORPORATION: You have two cows. You go on strike because you want three cows.
9. A JAPANESE CORPORATION: You have two cows. You redesign them so they are one-tenth the size of an ordinary cow and produce twenty times the milk. You then create a clever cow cartoon image called Cowkimon and market them World-Wide.
10. A GERMAN CORPORATION: You have two cows. You reengineer them so they live for 100 years, eat once a month, and milk themselves.
11. AN ITALIAN CORPORATION: You have two cows, but you don't know where they are. You break for lunch.
12. A RUSSIAN CORPORATION: You have two cows. You count them and learn you have five cows. You count them again and learn you have 42 cows. You count them again and learn you have 2 cows. You stop counting cows and open another bottle of vodka.
13. A SWISS CORPORATION: You have 5000 cows, none of which belong to you. You charge others for storing them.
14. A CHINESE CORPORATION: You have two cows. You have 300 people milking them. You claim full employment, high bovine productivity, and arrest the newsman who reported the numbers.
15. AN INDIAN CORPORATION: You have two cows. You worship them.
16. A BRITISH CORPORATION: You have two cows. Both are mad.
18. A ZAMBIAN CORPORATION: You have two cows. You call in investors to look after them for you and wonder why they are not sharing the milk with you
17. A ZIMBABWEAN CORPORATION: You have two cows. You eat both.





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