Africa is open for business! Or so we have been told. There is enthusiasm from investors; there are entrepreneurs with great (and some terrible) ideas; and there are businesses to be found all over the continent. Yet the flow of capital and investment into Africa are still slow. There are undoubtedly lots of reasons for this, but the question is: what can be done to encourage more catalytic investment in Africa and more successful African entrepreneurs?

As with all complex problems, the solutions are also complex and vary across the continent. For example, while Somalia is famous for its entrepreneurial and business-minded people, the chronic insecurity makes it a very hard place to invest. Meanwhile Nigeria has one of the biggest domestic markets on the continent and its $800 million ‘Nollywood’ film industry produces around 50 movies a week, making it second only to Hollywood (even bigger than ‘Bollywood’ on a per capita basis); yet the country is hampered by a reputation for corruption. Or in Kenya, where there are some fantastic, innovative businesses emerging (watch ‘mobile money’ take over the world and know it all began in Kenya); but the challenges of setting up a business and the political climate mean any investor will need a strong stomach for bureaucracy.

Here in Rwanda, there is a great deal of attention on and energy around entrepreneurial development and, indeed, the subject is now on the national curriculum for secondary school students. So I caught up for breakfast with Sara Leedom and Julienne Oyler, founders of African Entrepreneur Collective, to talk entrepreneurs, development, investment and the value of cows. Its pilot company, of Inkomoko Business Development, (which means ‘origin’ in Kyinrwanda) has been working in Rwanda since 2012 and, with a local team of eight and a rolling supply of international mentors, has supported over 170 businesses.

Kate: What is it that inspired you to get involved in supporting entrepreneurs here in Rwanda?

Sara & Julienne: For us it is all about jobs. Across the continent there is a real need to generate a huge growth in employment. In general, African economies need to grow 8-10% per year just to keep up with the growing labour market population and maintain current levels of unemployment. If you want to reduce unemployment, then even more growth is needed; and this growth has to come from the private sector. So, across the continent, there is a need for businesses that can set up and grow to create new jobs. For us at Inkomoko, it is all about supporting the entrepreneurs to build and grow the businesses that will create these jobs.

As for starting in Rwanda, well we actually explored a number of countries and there are a few things that make Rwanda a great place for entrepreneurs and investors. For a start, structurally, Rwanda is really well set up for entrepreneurs. It is easy to open a business; it is politically stable; there are efficient systems around tax and employment; and so on. Also, politically, there is a real encouragement for entrepreneurs with things like subsidised training and support for people to start businesses. In fact it’s the only place we have worked where starting a business is seen as ‘patriotic’. So while in the USA or UK, your average entrepreneur is often quite individualistic and there is a real emphasis on personal success, here in Rwanda, being an entrepreneur is much more about collective effort and about contributing to your community and country.

There are challenges too – it is a small country and so any successful business really needs to be looking beyond national markets. Also, outside of Kigali, infrastructure such as Internet is more limited; and, culturally, there can be a more cautious, less ‘risk’ taking, approach than you traditionally see in entrepreneurs in the West.

 

Kate: I feel like I read and hear a lot of enthusiasm at the international level for investment in Africa. Yet on the ground and certainly here in Rwanda, it seems that enthusiasm isn’t quite translating into actual investments. What’s your perspective on the challenges entrepreneurs here face?

Sara & Julienne: Matching investors and business is not simple. While it is easy to talk about and get investors excited about ideas, actually getting capital into businesses is much harder. Often investors, particularly those from mature markets in the West, have unrealistic expectations about what it will be like investing in an African business. They don’t necessarily know what it means to invest in, say, an agricultural business in an emerging economy and they have unrealistic expectations about levels of mechanism, or the ways labour will be organised, or how a business will plan and report on activities. Interestingly, what we are increasingly seeing is ‘South – South’ investment, particularly from Indian investors. They often have a better understanding of how markets and supply chains work in an emerging economy and are more able to understand the risks and recognise the opportunities. I think we will see increasing flows of investment into Africa from various parts of Asia.

The other challenge is in the types of businesses that international investors are drawn to. There can be an over enthusiasm for what are seen as ‘innovative’ ideas in, for example, technology business. While tech businesses are important, especially here in Rwanda, they are not going to be the engine of large employment. In a country where 80% of the population is involved in agriculture, the business opportunities and types of business that are likely to create significant numbers of jobs, are in agriculture and, particularly, in processing. For example, at the moment we are supporting a great business focused on avocado oil and we are also trying to work out how to structure financing for some cows for a diary business. But it can be a challenge to get investors, who are new to agriculture, to really explore these sorts of businesses.

 

What next for Inkomoko?

Sara & Julienne: At Inkomoko, we are committed to expanding our work in Rwanda. Everyday we are seeing local businesses with tremendous potential and opportunity, and we want to continue to provide the support and resources necessary to see these grow.

For African Entrepreneur Collective, we want to see take our learnings from Rwanda and move to new geographies. We want to explore working with partners in other countries across the continent, to see how we can grow the model we have developed here, to support more businesses, in more countries, to grow and create more jobs. I think what we have found here is the importance of working with entrepreneurs in a very tailored, individual way. All their businesses are different and so are their challenges; and while we have developed a really good training curriculum for business skills, helping entrepreneurs really scale up their business is about supporting them at all stages.

 

 

For more interesting information check out:

www.AfricanEntrepreneurCollective.org

http://inkomoko.com/

https://www.emergingcrowd.com/

www.growafrica.com

On Monday June 8th we are hosting our first Change Lab in Nairobi. This free event will be held at Zen Garden, Spring Valley from 6-8pm.

The Wasafiri Change Lab will use real world case-studies, facilitated dialogue and peer-to-peer problem solving to help you develop your organisation’s approach to building effective partnerships in conflict affected regions. The Change Lab will give you a structured approach to exploring challenges and creating solutions in new ways, with new perspectives and new people.

The session will be lively, interactive and discussion based. Please bring to the Lab a real challenge you are working on and come ready to talk, listen, explore and collaborate.

A drink & bitings will be included so please RSVP to [email protected]  to make sure we get enough food! – We look forward to seeing you there.

No time to watch all those interesting TED talks? Well we’ve watched (some) of them and here is our 1 minute summary of three of the most interesting and recent with something to say on change in Africa.

For Africa it is all about jobs, leaders and building strong institutions. In countries with weak institution you need good leaders – who can build the strong institutions to protect the country from bad leaders. And Africa needs jobs, lots of jobs – by 2030 the continent will have a bigger workforce than China and that means a  924 million people. Ultimately these jobs need to come predominantly from the private sector and so you need entrepreneurs – and lots of them. Fred is hoping that the African Leadership Academy and the African Leadership Network will be a part of creating these leaders and entrepreneurs that the continent needs.

Who are the biggest senders of money to developing world countries? Migrants are. Remittance payments from international migrants amount to  413 Billion US Dollars per year, or three times as much as ALL the development aid money given by governments. This money tends to move in small amounts and go directly to poor people – it has a direct, measurable, positive impact on development indicators such as birth weight, school attendance and GDP. Yet there are significant barriers and costs to getting this money moving. Diip Ratha’s call for action is to make this money easier and cheaper to send – and he has a plan for donors, social entrprenures and businesses alike on just how to do that.

 

Not the hopeless but the hopeful continent – Charles Robertson argues  (with some stats and some economist talk) that, as a continent, things in Africa are just getting better and  better.  From economic growth, to the quality of leadership, to reduced corruption, increased education levels and even reduced malaria, he paints a positive and optimistic picture of Africa and calls for the 21st Century to be the century of Africa. While his talk is sweeping and generalist – and his argument disguises huge variety and variation across the continent – it’s still a welcome and useful antidote to the stories of negativity that often dominate talk of Africa.

And if all that is a bit too serious, here is a satirical look at a particular African Stereotype. This one is much better to watch than to read about (and its only 3 mins long).

http://www.ted.com/watch/ads-worth-spreading/lets-save-africa

 

Download Change Perspectives – Wasafiri Insights 2014 For  some practical tips and ingredients on how to deliver change.

In the last year Wasafiri consultants have worked across Africa delivering change in diverse settings and on diverse projects. Working with private, government and NGO clients and across the continent we have tried, succeeded, failed and learnt new lessons about how to deliver change in Africa. ‘Change Perspectives’ is our new short report that shares  some of the practical insights we have gained.

Complex, interconnected challenges demand new forms of collaboration and innovation between diverse partners. And yet, the many meetings and conferences that are supposed to create this collaboration continue to be managed in didactic formats, with a few dominant voices holding court whilst everyone else though present in body, is absent in mind,  awaiting the short coffee break to have the conversations that they really need to have. New ways of working need to turn this on its head. We need to create spaces that accelerate the number of connections and conversations, and get people energised, aligned and committed to action.

In October I participated in the World Economic Forum’s “Transformation Leaders Workshop” for leaders working on the challenge of boosting agricultural production around the world. This event was bold and innovative about creating the context for transformational leadership. The video below captures the spirit of these highly productive few days. Key ingredients included:

  • Inviting diverse people, united by a common overall challenge and a spirit of entrepreneurial hunger to make change happen.
  • Never, ever, having a keynote speech, formal presentation, or even a stage.
  • Creating as many conversations as possible, but each with a level of clarity and focus about the topic, and with participants free to chose which conversations to participate in.
  • Fostering community by making the event fun, playful even, with dancing and creative construction activities.
  • Focussing minds on what actions they will undertake upon leaving.

Refreshments were always available, and we never took any scheduled breaks, because essentially the event was the ultimate coffee break – two days packed full of people and conversations that were inspiring and pioneering.

The nature of war is changing. Two years ago, the State Council declared that global conflict was becoming “more integrated, complex and volatile”. Their view would appear prophetic given the recent spate of hostilities in countries such as Libya, Ukraine, Palestine and Syria, all fuelled by highly combustible combinations of social, political, geographic and resource-based triggers for violent competition.

Against this alarming trend, we also see a proliferation of the responses devised to counter what is perceived to be a growing threat to national interests. Such reactions are driven by an increasingly disparate assortment of political, economic and security agendas, backed by an dazzlingly diverse array of actors, from emerging economies seeking to flex their international muscle to enterprising private companies exploiting frontier markets.

As a result, we find ourselves witnessing the birth of whole new industries, sparking an explosion of the acronyms used to describe increasingly complex “solutions” to counter increasingly complex threats; Countering Violent Extremism (CVE), Serious & Organised Crime (SOCA), Security Sector Reform (SSR), Counter-Terrorism (CT) and Counter-Insurgency (COIN). All these and more, crowding the spaces traditionally reserved for more “conventional” military, development and humanitarian interventions.

Among such approaches now at the disposal of foreign governments is “Stabilisation”, a poorly understood and often contentious term that has been used to define western responses to a multitude of crises over the past decade. But fundamental questions have emerged to challenge the orthodoxy; what is it exactly? Is it relevant or even effective? And what of its future? Such questions were the subject of a recent international conference hosted by the Danish and UK governments.

“Stabilisation” as a mandate first formally emerged with the appointment of the Stabilisation Force for Bosnia and Hezogovnia (SFOR) in the early nineties. It has since been practiced most explicitly in military-led campaigns in Iraq and Afghanistan, becoming firmly wrapped up in the hubris of the US-driven War on Terror. Over that time the concept has increasingly become muddied in the waters of counter-insurgency operations, consent winning military activities, counter-terrorism initiatives and wider state building ventures. Often it has been derided as a callow attempt to ‘win hearts and minds’, an approach reduced merely to the delivery of notoriously expensive and often counter-productive ‘quick-impact projects’.

Its usefulness in tackling conflict has been further undermined by institutions – military and civilian alike – adopting a confusing patchwork of interpretations to suit their own purposes, and badging increasingly varied, even contradictory, activities under the moniker of stabilisation. Conduct a quick survey (as we did of our international partners in Somalia) and you will immediately encounter the ugly truth; “Its too difficult, we shouldn’t bother.” “Its everything, and its nothing.” “It’s had its time”.

Yet whether we like it or not, stabilisation appears set to stay. Since the mid-1990s, twenty-nine multi-lateral UN, NATO and EU missions have worked to peacekeeping, peace enforcement or political mandates which include the promotion of stability. These include the Central African Republic, Liberia, Mali, South Sudan and Kosovo. A further sixteen multi-lateral missions have been explicitly mandated to use stabilisation to achieve their strategic objectives in countries such as Afghanistan, DR Congo, Somalia and Haiti. Together, these efforts have involved budgets in the billions, tens of thousands of troops, and the engagement of many western government’s political and development ministries.

In short, stabilisation matters. Learning the lessons and getting it right in the face of today’s rapidly mutating threats to global stability is more crucial than ever.

Hence the conference; a gathering of policy makers and practitioners from the Danish, UK, US, Canadian and Dutch government agencies charged with overseeing stabilisation efforts abroad. With the dust still settling on a two-year stint as Senior Stabilisation Adviser for the British Embassy in Somalia, I was roped in to help facilitate the gathering.

The event, held in the grounds of Wilton Park in East Sussex, primarily served as an opportunity for the UK and Danish governments to unveil their newly varnished stabilisation doctrine.

The UK, following an exhaustive cross-governmental consultation, has refocused its definition of stabilisation around an explicitly political aim; as “one of the approaches used in situations of violent conflict designed to protect and promote legitimate political authority, using a combination of integrated civilian and military actions to reduce violence, re-establish security and prepare for longer-term recovery.” Whilst the tighter political focus was generally welcomed, concerns were raised over how legitimate political authority should be determined and promoted.

The Danish have taken a broader view in their newly published Integrated Plan for Stabilisation Engagement. In their glossy brochure-style treatise, they propose a multi-dimensional, multi-agency approach to tackling threats to stability “lying at the nexus of security and development in fragile states” such as extreme poverty, religious extremism, economic crime, refugee flows and terrorism. Whilst the expansive approach succeeds in bolstering pan-government agendas, it risks reinforcing the notion of stabilisation as yet more empty foreign policy jargon.

Yet the similarities of the two approaches are more striking than their differences. Both governments recognise that the stabilisation of fragile and conflict affected states is a risky but essential challenge for the 21st century. Both see it no longer a question of whether to engage in stabilisa­tion, but of where and how to engage in the future. Both see stabilisation as central to forging greater unity across overseas developmental, diplomatic and defense contributions.

However, and despite the rhetoric, the real test lies in moving beyond past failings, of heeding the lessons which were all too painfully laid bare during the conference. Few attending had emerged unscarred by previous mistakes in undertaking stabilisation in far-flung war-torn corners of the globe. However with the growing mess of threats to security arising from countries as diverse as Iraq, South Sudan, and Nigeria, it is clear that the demand for stabilisation is only likely to grow.

Smarter definitions, a growing library of lessons learned and more relevant concepts hewn from experience are a good start. Yet the real worth of the exercise will be the extent to which policies are improved and delivery on the ground is sharpened. My own recent experience of establishing a two-year $18million programme designed to sustain military and political gains in the battle-scarred southern reaches of Somalia offered rich insight into the realities and shortcomings of what could be achieved through a targeted initiative overseen by a dedicated team of specialists with the freedom to innovate, move quickly and build on success.

A number of forthcoming events however will serve as the real litmus test of positive change; NATO’s strategic rethink, the UK’s Strategic Defense Review, as well as the achievements of the UK’s new Conflict, Security and Stability Fund and the Danish Peace and Stabilisation Fund. Only then, if and when we see future stabilisation undertakings moving beyond a decidedly mixed track record to an approach driving demonstrable results on the ground will we be reassured that the effort, and the cost, has been worth it.

Hamish recently concluded two years as the British Government’s Senior Stabilisation Adviser in Somalia, and now lead’s Wasafiri’s conflict and stability practice – dedicated to working with military, political and civilian organisations to help deliver change in fragile and conflict affected regions.

How do you create a culture of innovation, be it in a business, an institution or a country? This was one of the big questions that came up at our recent Change Lab in Kigali – and something I have been pondering on. So here is a short ‘Food for Thought Playlist’ of interesting ideas and unusual people innovating in unconventional spaces.

We would love to hear your thoughts and any ‘food for thought’ examples you have.

Arunachalam Muruganantham – Saw a problem, imagined a solution, built a machine, failed (a lot), ignored some feedback, listened to other feedback, engineered a business model,  ignored old ideas that didn’t work and has created a significant change in the health, education and economic prospects  of rural women in India with health , education and economic impacts. Here is a link to the article:

http://www.bbc.com/news/magazine-26260978

Charles Leadbeater- Suggests that ‘the question we ask will shape the answer we get.’ He looks to Kenya, India and Brazil and into some unconventional places for some innovative ideas in how to deliver education, not just in the developing worlds – but everywhere. So our top tip when searching for innovation is to look not to what’s working ‘now’ but to where change is happening ‘now’. Here is the link to his presentation:

Myriam Sidibe – hasn’t invented anything new, but she argues for a new way to use an old solution to solve a big, global problem – but to do this takes innovative thinking and innovative relationships. Take a look at her amazing presentation here:

Steve Chapman – If innovation is a lovely big cake then it needs some ingredients – here Steve adds in the creativity and imagination which on their own aren’t a great meal but altogether make rocket fuel. Read his blog post here:

http://canscorpionssmoke.wordpress.com/2012/10/13/cpr-for-the-imagination/

And finally – this is an old short favorite of mine. Innovation and a culture of innovation is not just about having ideas, it’s about people adopting and getting excited by one another’s ideas – so how do you create a culture where people will adopt, try and follow each others ideas? Take 4 minutes to look at this priceless way to start a movement.

What do a hotel developer, a community arts innovator, investment manager, a diplomat, several entrepreneurs and a lot of clever, interesting people have in common? They are all part of delivering change in Africa, all interested in creating public private sector collaborations and all came to our first ever Change Lab in Rwanda.

Thank you to all who came it was a lovely evening of interesting people, from diverse backgrounds and organisations exploring, sharing and learning about how the private and public sector can collaborate to deliver change in Africa. We will be doing another change lab here in Rwanda in the new year and bringing it to Nairobi too  – so let us know what topic would you like to see the next lab focus on?

Partnerships are in fashion. Donors like the idea that, by asking organisations to work together, to share knowledge, expertise, geographical reach and influence- there is the opportunity to create greater impact and deliver more change. Whilst the theory of partnerships may seem simple, the practice is complex. I was recently asked to lead a workshop that would help build a real, working partnership, one capable of working on one of the most challenging issues we all face – climate change.

BRACED (Building Resilience and Adaptation to Climate Extremes and Disasters) is a DFID funded programme that supports NGOs to build the resilience of people to extreme climate events. To be effective BRACED demands that organisations come together to share expertise and work together to create sustainable and scalable solutions. However, delivering change takes more than commitment to a shared cause. It takes commitment to one another; it takes good understanding and a clear, shared direction; and this is where Wasafiri came in.

BRACED Ethiopia, a Christian Aid-led partnership between ActionAid, King’s College London, BBC Media Action and the UK Met Office- invited Wasafiri to lead a workshop for them. The aim of the workshop was to develop the shared commitment, understanding and direction that they needed if they were to secure full funding for a 3-year BRACED project and deliver real, lasting climate change resilience in Ethiopia.

The ‘BRACED Ethiopia Workshop’ was held in April 2014 in Addis Ababa. Over four days it was attended by more than 40 people representing key partnership members, local implementing partners, government, and DFID amongst others. Wasafiri created a process that was participatory and action-focused. We created the space for organisations to build the relationships and understanding of one another that they would need to work together. And then to build a plan and structure that meant everyone knew what they were responsible for and how they would deliver their part. At times the workshop was challenging, there were issues of leadership and participation to address, and agreement of tangible outcomes to achieve. However through shared commitment, a willingness to listen and learn and the co-creation of a tangible plan – together we built a partnership capable of creating real change.

“Thanks Wasafiri – a lot of high energy work in a short space of time” (workshop participant)

“…we all were fascinated by the quality of Katie’s facilitation, light, embracing, probing deeper in to the issues and alternative ideas as well as proper time management and eventually amazing results” (Country Director, Action-Aid)

 

STOP PRESS: It has just been announced that the partnership has been shortlisted for 3 years of  BRACED funding from DFID.

For more information on BRACED see here

https://www.gov.uk/international-development-funding/building-resilience-and-adaptation-to-climate-extremes-and-disasters-programme

 

photo credit: <a href=”https://www.flickr.com/photos/ciat/5366738845/”>CIAT International Center for Tropical Agriculture</a> via <a href=”http://photopin.com”>photopin</a> <a href=”http://creativecommons.org/licenses/by-sa/2.0/”>cc</a>