ABOVE:
Ethiopia attracts
large amounts of
foreign investment,
with significant
opportunities
opening in agro-
processing.
Getty ImaGesunderestimate the impact of
grassroots politics on business and
the economy. Africa is traditionally
seen as the ‘Dark Continent’,
because of all the baggage we
carry due to our history of slavery,
colonialism, wars, dictators and
poverty. Western media have
added to the myth through
unintentionally biased reporting.
How can
entrepreneurs
best manage tHe
cHanging business
environment?
I like to refer to the famous
boxing match between
Muhammad Ali and George
Foreman [in Zaire] in 1974. The
first surprise is that the president
of Zaire, now known as the DRC,
invested over US$10 million
[about R725 million today] to host
the fight, known as the Rumble
in the Jungle, in Kinshasa. This
reflects the ambiguous nature
of the continent: on the one
hand, you have extreme poverty,
and on the other, immense
wealth and opportunities.
The other surprise is that
Ali won the fight, even though
the odds were stacked four to
one against him. How? Firstly,
he had relentless drive and
determination, which is also one
of the key traits of companies
that make it in Africa.
Secondly, he spent a lot of
time with the people, whereas
Foreman withdrew into his hotel
when he was not practising. Hence,
on the day of the fight, the stadium
was packed with 60 000 people,
chanting “Ali bomaye”, w h i c h
basically means “Ali, kill him”.
To me, this illustrates the
importance of winning the hearts
of the people, and knowing the
territory if you want to make
it in Africa. It’s not enough to
merely do research; you need
feet on the ground to understand
the DNA of a country. Africa
consists of 54 countries, with
54 heads of state. A one-shoe-fits-
all approach isn’t going to work.
The third contributor to Ali’s
success was a move he later
dubbed “rope a dope”. By lying
on the ropes and rolling with the
punches, he basically allowed
the ropes to absorb some of
the power behind Foreman’s
punches. By the eighth round,
Foreman was so tired that Ali
was able to knock him out. To me,
this illustrates the importance of
knowing the threats, and having
a strong network to help you
absorb and overcome problems.wHy do most
companies fail?
Companies generally fail when
they try to apply developed
countries’ strategies to Africa’s
emerging market, and when
they are not in touch with
the customs and traditions
of their target market.wHere are tHe
biggest gaps on tHe
african market for
soutH a frican agri
entrepreneurs?
There is a lack of knowledge
of the scientific and technical
aspects of agricultural
production. Zimbabwe is an
example of a country where
farmers were forced out and then
became successful in Nigeria
and Zambia because of their
knowledge. South Sudan has
significant arable land, and isone of the countries where the
leadership is providing incentives
for farmers to come and invest.wHat sHould
tHey take into
consideration
wHen deciding
wHere to invest?
Investors should have a good
understanding of legislation and
taxes, and how changes to these
would affect them. An import ban
or high import taxes, for example,
could result in a business not
being economically feasible.
They should also understand
the market, as well as the politics
and culture. There are huge
opportunities, as agricultural
development is part of most of
these governments’ economic
growth strategies. Many foreign
donors, such as the US Agency for
International Development and
the Department for International
Development of the UK, are
looking for viable opportunities
to invest in the continent.- Email Dr Rutendo Hwindingwi at
[email protected].
He will be speaking at the 9th annual
PMA Fresh Connections: Southern
Africa Conference and Trade Show, to
be held at the Century City Conference
Centre in Cape Town on 30 and
31 July. Visit pma.com/events/fresh-
connections-southern-africa.
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