BOOKS
The enigma of doing business in Africa
Published: 26-OCT-04
Africa is a continent of many contradictions. Statements
of support and wise words from governments
and development agencies are not necessarily a reliable
indication of what it’s like on the ground. That,
in a sentence, sums up the thrust of this book by Steve Shelley,
Doing Business in Africa, a Practical Guide for Investors, Entrepreneurs
and Expatriate Managers.
So, what do we learn from this soft cover
publication? I learnt nothing
that I did not know.
Perhaps because I am
an indigenous African,
therefore some of the
assertions and generalisations
made in the book
are all too familiar to me
or germane to my race.
Just as they say in Britain,
not everyone who is British
is English.
Shelley laments that good
leadership is what Africa
lacks, and desperately needs.
In the words of a well-known
television cleric, Dr Myles Munroe from the Bahamas, the
third world is now the “flavour
of the moment. The First and
Second World have nothing more
to offer. Africa should seize the
moment.” Shelley points to the next 10 years as crucial for Africa's
development.
The missing element, he says, is that “catalytic effect” brought
about by African and foreign investors coming together to move
Africa forward. The continent has long since been trivialised and
marginalised by global business. The average return on inward
investment for Africa as a whole is four times that of the G-7
countries, and twice that of Asia, according to The United Nations
Economic Commission for Africa (UNECA).
Shelley, describes doing business in Africa as “having fun,
an immense feeling of satisfaction, whilst contributing to the
upliftment of the societies and the people we work with.” Unfortunately,
there are as many opportunities as there are glaring
contradictions. The book identifies these contradictions and key
opportunity sectors. For example, focus should shift from traditional
business
sectors like retail, taxis and repair work, to areas
such as technology, tourism and outsourcing.
A chapter on The State of the Continent and regional trading
blocks such as ECOWAS, COMESA, EAC and
SADC only seem to highlight Africa’s acute disunity
of purpose, a certain, separate regional-mindedness
of trading with the West. He laments, quite correctly,
that Africa is the only continent that continues
to grow poorer despite massive injections of donor
funds and World Bank and IMF loans to reverse
poverty. Including the newly-formed NEPAD,
its members are beholden with lack of cooperation
and suspicion of each other. Africa’s regard
for its own Diaspora needs to change. Sadly,
western foreigners still enjoy better treatment
in Africa than fellow Africans. “No other
continent’s governments and people seem so
unwilling to change.”
For a narrative book, I found the theories
of strategic business management too
academic and patronising to
the African
reader. Lessons on King Shaka’s military/
management skills would have been
more complementary, in my humble
opinion.
The country profiles and personal
commentaries, although subjective,
are an informative guide to persuade any jelly-heeled
investor. It is a great almanac of the African business landscape,
from the sublime and unconventional, to the modern and global
imperatives. By and large, what African countries need and
what their governments want always differ. Shelley’s reality
check concludes that although Africa’s business transparency is
sometimes as clear as mud, Africa offers the last big investment
opportunity.
DOING BUSINESS IN AFRICA
By Steve Shelley
Published by Zebra Press.
Reviewed by Caleb Thondlana
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