Entrepreneurship in Africa

Mugure,

As an African entrepreneur (and sociopreneur) based in the United States, I have pondered such questions for quite a while. I am encouraged to see enterprises like yours doing well in the often challenging business environment of a developing country like Kenya.

I'm also keenly aware, both from personal exposure as well as from secondary sources, that some of the greatest growth opportunities in the world are in Africa (Sub-Saharan Africa in particular).

With regard to your question of what the three main areas of need on the continent are, I suspect that there is quite a bit of variance in relative need.

I have come to believe that true sustainable development on our continent will only come from education...not just canned and packaged "Western-ish" education, but a relevant and pragmatic education that helps us take the forefront in the struggle to conceptualize and articulate the problems we face. Only after this is done...from the ground up can any of our friends in the West help us.

The social systems re-engineering that will be required to solve intractable problems like defining real nations (out of our current "states"), embracing the value of the individual even as we maintain the benefits of communal identities, all these solutions will have to be conceived in the universities of Nairobi, Lagos and Accra.

Greater access by more people to better, more relevant education will help alleviate the challenges in public health, security and governance we currently face.

Social entrepreneurs represent a special kind of hope and help for Africa. Support for African entrepreneurship pales in comparison to the publicity and support for organizations tackling other (seemingly more urgent) problems> However, I fear that without more support for education and entrepreneurship in Africa, the current dependence on external support will continue for another 200 years.

While I'm no authority on the subject, my current approach to social entrepreneurship in Africa (as a US-based entrepreneur) is to carefully craft networks on both continents and to make a business case (on the US side) for why partners and sponsors should support our African projects.

You're invited to join us on the Innovate Africa Network - www.AfricanInnovationProject.com as we work to build an online network of researchers, experts and partners.

Gogo
Founder
Innovate Africa Project
www.AfricanInnovationProject.com

Hello Mugure,

As a social enterpreur my self from Somalia and now Edmonton, Alberta (Canada).
We have tested in Canada Social Enterprise and developed curriculum and workshop Model of Social Entrepreneurs to help communities from post conflict countries in Canada, We get great results and Now are testing our newly formed institute in Djibouti and North eastern of Somalia.

Established in 2007, The Tools for Humanity Institute (T4HI), a project of Tools for Humanity's organization. Tools for Humanity Institute are a vocational technical training and social entrepreneurship school of business. T4H’s the Vocational and Leadership Institute is to empower current and emerging leaders, to create high impact to African post conflict communities through community economic development, human capital development and social change. T4HI delivering the various programs leading to professional certification, Special training in conflict resolution, leadership skill development, capacity building and social entrepreneurial development for private and public agencies.
T4HI is becoming one of Canada's leading vocational and leadership institute to post conflict communities in areas of creativity, innovation, technical studies and entrepreneurship. T4HI's multilingual staff and volunteers offers their students a combination of practical field experience and advanced social entrepreneurship education in community economic development and to leadership in international development. T4HI recognized for its innovative programs, student focus and successfully managed international civil society, capacity building and social enterprise projects during the last decade.

We are totally support this discussions and we are looking to share our expertise and experiences in this field.

Please continue, as this models of business will make Africa the right place and we can invite anyone want to know us more.

Mohamed Maie
CEO/President
Tools for Humanity
www.tools4humanity.org

Mugure,

Though we do social enterprise elsewhere, I've networked with several through Ned.com, formerly Omidyar over a few years and there are many good ideas out there, but typically no funds to start them.

Let me focus on Kayiwa Fred in Kampala who runs a football club for orphans and struggles with a little help from his friends to get a computer club off the ground.

Living in the UK we see Sport Relief on the BBC and I imagine to many that gives an impression that all problems are being tackled yet, I know even in Kampala the capital city of Uganda, he will be invisible to the BBC.

There's still limited access to microfinance of the collateral free type and about all we've been able to support him with are collective effort to buy things like a computer, send football kit and money when there's an urgent need for medical treatment.

Ideally, for the aims of supporting his computer club efforts, I'd be able to outsource some tasks to them, or they might function to build websites for local businesess for example, but we know web infrastructure is limited for most and that's one area in which we advocate in other countries, to give access to information which feeds business and helps foster democracy.

Gabriel Nwanze in Ghana, wanted to build a telecentre and together we got a proposal into Bid Network a couple of years ago. Even now, I don't think the model of business for social purpose is understood, even here in the UK where social enterprise and volunteering are often used interchangeably.

Right now, as I understand a couple of our informal network members are heading for Kampala, I await their feedback with interest.

Jeff

   


 
           

Mugure,

I can't thank you enough for raising these points for discussion. In my opinion there should be more African voices in the discussions on social entrepreneurship.

I am also an entrepreneur. I was born in the Caribbean, bred in the US, with a passion for business and positive social change in Africa and other developing regions.

About a year ago I tried to start a business in South Africa. I'm not afraid to say it quickly failed there and a large part of that was due to poor selection of a local business partner. The good news is ConceptLink Consulting is still going strong here in the US. But I can't emphasize enough how important it is for US or UK based entrepreneurs (social or business) to do their diligence and take the time to find excellent partners in Africa - good operations are otherwise impossible.

Mugure, the points you raise are excellent and exactly the types of discussions that will take place at a conference I'm organizing in New York on September 25 & 26: the AngelAfrica Enterprise Conference. This annual event will bringing together a diverse group of professionals and entrepreneurs to showcase leadership and innovation in Africa’s private and social sectors. We want to demonstrate that a thriving business environment, coupled with positive social impact, is paramount to sustainable economic development throughout the continent.

Day 2 of this year’s conference will be dedicated to the Africa Social Enterprise Forum (ASEF), which seeks to empower existing and aspiring social entrepreneurs by providing a forum for them to showcase their work, share ideas and learn best practices while networking with media, potential partners and investors.

I don't have all the answers, but I do hope that you and some of the other entrepreneurs here can join us in New York in September for more conversations like this.

Visit www.angelafrica.org for more information.

Cheers,

Jerryanne Heath
www.conceptlinkconsulting.com

It’s great to see initiatives that suggest sustainable solutions through networking, trade, vocational training and so on. I have always felt that the best way to empower less advantaged communities is by teaching and enabling them to fish, rather than providing the fish, so to speak.

I have had the pleasure of working with Leila Chirayath, a fellow blogger on this site, who has created an interesting social enterprise model. Her organization, Samasource.org provides linkages between entrepreneurs in the African / Asian region and US markets. This not only provides good income for the African and Asian companies, but also enables their workers to acquire new skills and qualifications. On the other side of the coin, US organizations are able to benefit by reducing their costs. These and other similar interventions I believe are the way of the future – trade rather than aid.

Thank you all for the insightful contributions.

Greetings,
As the CEO of Street Kids International I often work with social entrepreneurs with extensive backgrounds in business. Street Kids International is about to launch a unique employment preparation program for street youth. The program is lead by a Canadian social entrepreneur and will successfully bring together BPOs in India and the Philippines and selected local NGOs into a collaborative relationship. If you would like additional information regarding Street Source please contact me.
Further Street Kids International with support from ECCO (Copenhagen)is sponsoring an entrepreneurship program for street youth in Nairobi. Our Kenya partner is K-Rep.
Best regards
David

Great contributions.

To sort of continue on from David’s thread, I know of, and have even benefited in the past from organizations like K-Rep, the micro-finance organization David points out.

K-Rep is actually one of a number of micro-finance institutions in Kenya that specifically target small enterprises, sometimes in the very poor parts of the country (eg slums). They are able to offer loans of sometimes as low as USD 100 to micro-enterprises, which are then able to grow incrementally.

Micro-finance institutions have found impetus in several developing countries, especially where main stream banks are not able to, or are not interested in extending loans to micro-enterprises.

My own company began by borrowing from a similar institution several years ago. At a time when we were not able to attract much attention from banks or other sources of finance, we were able borrow from this institution to augment the USD 4,000 I had managed to raise to start my business. At that time my entire corporation consisted of myself and one other person, so I guess we qualified to be classified as a micro-enterprise. I was able to borrow several more times from this institution before we finally raised our first round of venture capital, a few years into the business.

Over the years, I have followed with interest developments in micro-finance in Kenya and in other developing countries. This is one area that the social enterprise domain could pursue more vigorously, I believe.

To effectively operate in Africa, I believe a social entrepreneur should evaluate a potential African project based on the following African needs:
1. Economic Returns. Profit - An improved balance of trade, an increased standard of living, and increased income are the primary goals. An integrated approach to managing the program enables these goals to be achieved by concentrating on and maximizing its total return.
2. Technology Insertion - The application of appropriate technologies will allow the stakeholders to utilize and deploy proven techniques that provide more efficiency and conservation, creating a reduced cost for production. Technologies must be chosen for their usefulness; the latest (and often most expensive) technology is not always the most cost-effective.
3. Food Production - Thought must be given to all aspects of production. Vertical integration is essential in maximization of resources. A closed-loop manufacturing process assures the full utilization of all inputs and byproducts.
4. Vocational Training for People in Extreme Poverty - Increasing the level of education and an emphasis on sanitation and health issues are integral parts of the plan. Education should create an awareness of the benefits and need for change. Education should provide a vehicle by which the residents can become more self-sufficient and self-reliant, thus enabling them to perpetuate their progress.
5. Marketing - The marketing “audience” is made up of several groups. Traditional marketing must be done for the promotion of products developed in the region, both within and outside the country. Marketing (itself a form of education) must be provided to those in the area to ensure their support of the plan. The local government, another target audience for communication, must be kept informed of the progress and the needs of the region.

Organizations that can provide the most help for agricultural projects include
• ECHO (seeds, agricultural education material),
• Kickstart, IDE, and Chapin Living Waters (irrigation systems),
• Trees for Life and Gaviotas project (highly successful agricultural projects, identification of appropriate technology)

I believe Moringa and micro irrigation systems can greatly increase the food security for both animals and humans in many parts of Africa. I believe African social entrepreneurs should learn more about tropical and arid land agriculture from ECHO so that they try some new ideas.

Hi, Mugure

Education is important...opportunities are every where but the kind of education that most of us not just in Kenya but in Africa do not help us in the thinking processes that entrepreneurs ought to have.
In Kenya,especially we are conditioned to "read for exams" and there is little inculcated in us to help us identify,problems and come up with the most innovative solutions. Our educational systems need to be revamped and this would mean that social enterprises capable of providing alternative education systems, to step up and change the way things are being done because in most of our countries, we see existing systems changing too slowly for myriad reasons.
If you did, which bring me to the second point, then nobody will take you seriously and those who take you seriously will either "steal"your idea because you don't have the resources needed to take advantage of opportunities on time. That is why we need policy frameworks that would protect such individuals.
Then there is the issue of unity. Too many good ideas, too little cohesion. If people can bring there ideas together, and be humble enough to submit their ideas to a pool where it will be made better, why not...Instead of each person struggling to make his/her idea work singly. That is why we need forums to share like this and we need people of good will.
Albeit the reason why the 90% Gold wealth in Africa haven't affected change differently is the spirit of me, and mine...can we unite...in thought, ideas, and direction...?

Jimmy Oluoch,
Nairobi, Kenya
Cerulean Blue Consulting

Thank you so much for inviting me to this discussion. I have thought long and hard about this topic and have a few thoughts to add to the discussion. None of them, however, are intended to be the panacea for Africa's development ills. They are merely essential ingredients that must not be ignored, if Africa is to learn to fish on it's own.

I've had many arguments on Twitter about the abuse of the "social entrepreneur" phrase. Mainly in defending against misinformed attacks that it's sugar-coating a motive to profit from the poor. In reality, it should and does (at least for me) mean "empowering the less-advantaged to make a profit on their own..." Sometimes referred to as sustainable development. Investing in systems and social frameworks or infrastructure that allows a community to develop on it's own. Build the road, and they will find a way to move goods on it.

Which is to say that Africa needs infrastructure in several key areas: IT, energy, and governance.

1) Today, the road to Africa's future looks nothing like it did in 1975. Africa's yellow-bricked road is being built by ones and zeros, the digital super highway for development. It's what's making the future bright for the emerging BPO sector, and firms that are etching their growth in this sector are well-positioned. What's amazing is that BPO firms are sprouting up in spite of bandwidth infrastructure limitations that lag behind their Western counterparts. But that's changing. Currently there are 5 legitimate initiatives to connect Africa to the rest of the planet's broadband network. SEACOM goes live next month. EASSY, Google's O3B Networks' et al are a-lighting within the next 15 months. Digital infrastructure is in place for firms like Samasource to truly empower digital entrepreneurs in Africa's emerging markets. See the bigger picture.

2) But more needs to be done to fully take advantage of all of this available bandwidth. Africa's growth is being stunted by a growing lack of energy. From South Africa, to Egypt. Nigeria to Kenya. Rolling blackout are the order of the day. We stutter as the rest of the world hums along at a break-neck 24/7 pace. Our inability to keep up is ever-apparent the more we try to stay connected to the rest of the world. Within the next two years, over 6 terabytes of backhaul broadband is going to be up for grabs in Africa. This will see an influx of new entrepreneurs bumping against energy limitations. See the bigger picture.

3) Finally, father time is slowly allowing that which needs to pass, pass. The post-colonial political powers that be, are retiring or being forced to exit. There's a new school of thought emerging in how our African states behave. Accountability is rising, rule of law is taking shape, albeit slowly. Entrepreneurs are thriving, even amid a challenging and indiscriminate business and political climates. More effort must be put into cementing rule of law (see Rwanda), reforming institutional grid-lock and protection of IP.

So with all those glaring challenges, how can we effectively operate in Africa? I think any promising social entrepreneurial investment must have community buy in. The key is to address a need that has not been resolved... even if it is at the expense of profits. Simply raising a community's standard of living opens up more opportunities to grow your investment. Dead Africans have no purchasing power.

This must not be mistaken as an endorsement for more aid and charity. Aid does not create wealth, investments do.

I will leave you with this final thought. There over 100 million Africans living abroad. If you look at the bigger picture, a majority of them are working, making a decent income, sending $40 billion dollars back home annually. This is Africa's missing middle class. Increasingly their remittances are turning into investments. From one-to-one solutions, to social entrepreneurship platforms - moving the standard of living, not only for their loved ones, but for entire communities. We need more of this type of engagement! Partnering with Diaspora members comes with built-in community buy-in that you can't put a dollar-figure on. As Diasporans, we bridge the divide between the West and our homelands, and we balance culture and modern ways of existence, business best practices, social and investment capital. That knowledge is worth more than King Leopold's gold. We need to harness this to it's full extent.

TMS RUGE
Project Diaspora
Co-founder
http://projectdiaspora.org

Mugure,

The first Women Aviators of Africa gathering will take place in Nairobi, Kenya August 2-9, 2009. Throughout the week we will be visiting orphanages and schools throughout the region and we would like to know what you suggest we bring to share with about 1000 children?

Do you think they would like toys, books or school supplies? Of course I will check with our hosts and school/orphanage leaders, but I am gathering all available information.

Our Women Aviators group will also be taking a few children on 10 minute flights over Nairobi to share the gift of flight with these young people and that may be where we focus our attention as aviators, but if you can think of an item that is a "must" we'd love to know.

Thank you,
Sandra Clifford

Sandra, as a photographer, the first thing I thought about was providing those kids that do get to fly a photograph of them while in flight. There's nothing more inspiring to give to a child than a lasting memory of something so inspirational! They'll cherish it for life. Who knows, it could inspire them to be great aviators even more!

I will be in Uganda in early August, let me know if there's anything I can do to help with your project... and good luck. Also, thank you so much for giving those lucky few some early wings!

TMS Ruge: Thank you so much for your suggestion. We will print and laminate photographs that day. Wonderful idea!

Hi Sandra,

This is a wonderful idea - your visit to the children will certainly open their eyes to great possibilities.

I think the most useful thing you could bring would be school supplies - ie notebooks, pens, pencils, reading material, text books etc. Can't go wrong with these. Toys would be nice to bring but of course the above supplies would go a long way, especially if the orphanages/schools are in need.

I like the photograph idea too, something they can keep to remind them of your visit and the possibility of a future in your profession.

Thanks and welcome to Kenya! If you would like to contact me before you come, I'd be delighted to hear from you.

Mugure

Sandra, thank so much for your noble idea to assist this needy and sometimes forgotten members of our society may God continually provide to all your needs and even to your children's children.
As a graphic designer and screen printer and also having worked with children in church and schools the first thing I thought about are T-shirts with a graphic to carry the day and the name of their home/ school this would directly make the child appreciate the visiting team and for the sake of their future and the home/school books or school supplies would go along way to assist them.

francis.
framu2004@yahoo.com

TO ANSWER YOUR QUESTION - HOW DO YOU OPERATE EFFECTIVELY IN AFRICA?

1. Operate AS IF. I was an Investment Banker in the U.S. and worked for a top notch firm. Even in the early days when I had no running hot water at our first tiny facility -I did NOT make expectations for the quality of our goods. I sourced the best ingredients and expected the best work out of my workers.

2. UNDERSTAND BUT DO NOT APOLOGIZE. I had excellent mentors who had worked in and around Khayelitsha (the home of the 1st cookie company) who explained to me the very harsh social structure (and I was working in it every day) that my workers faced. I tried as best I could to understand their conditions. I did not, however, apologize for them. This would have made me an ineffective leader. I lead my team to become leaders themselves (and today one is running her own business and one will soon graduate University).

3. DO NOT BE AN ARMCHAIR BOSS - I believe respect is earned. This counts for the boss/Founder/CEO. I never asked a worker to do anything I did not do. We had a list of chores. I adhered to that list as well. I earned respect amongst the women as they did with me.

These are my top three words of wisdom and I am more than happy to offer other comments if you email me. You will find contact details on our website khayacookies.com

Dear Mugure
I am presently in South Africa, and having spent a large part of my life in Africa, I would like to contribute my own findings. Three years ago we did the research for an interesting book "Africa Leads" on behalf of UN Global Compact, Barlowworld, Unisa and GTZ. We found over 3000 heart warmings stories from spread all over Africa and covering every single African country, not just SADC. As a result, we identified common challenges everywhere.

1) As a social entrepreneur, what do you think are the three main areas of need on the African continent?

Change of the myth of ownership, to the factual one that as humans we have a custodianship and stewardship role and purpose. Question: Do you OWN the air that we all breath? No, you don't, but we all share it. The other is the myth that there is never ENOUGH ... once again using the air ... all the millions that reside on our planet are sharing it on a daily basis ... and there is always enough for our next breath ...

2) Based on the above, how best can a USA or UK based social entrepreneur effectively operate in Africa?

Let's forget Africa and local at the global issue ... because whatever you do in one country impacts on the livelihood of other countries peoples, now and in generations to come.


3) Any personal experiences anyone would like to share? Never know – we might debunk a myth or two!

YES! Get large businesses and goverments to start applying true custodiahsip and stwearship of resources. We live in a world that says that resources are "Infinite" ... that is not true ... like everything else there are finite ... there is a begin and an end ...

Changing the above false believe on infinite resources will mean that corporates and goverments will start acting responsibly, and not out of greed and thirst for power.

Take care and go in light
Laurinda Seabra
Empowerment Gateway Group

Dear Mugure,

As a social entrepreneur, working in Kenya, I have to first say that you are a wonderful inspiration to many of us. I thank you and wish you much success. You will be a great role model to many aspiring entrepreneurs, both men and women alike, from Kenya.

I have worked for the past several years in rural Kenya, on the south coast, helping to build a rural microfinance institution, Yehu Microfinance Trust (www.yehu.org). It has been a tremendous challenge, but with great rewards. Our foray into microfinance led us to start Coast Coconut Farms (www.coastcoconutfarms.co.ke) which produces virgin coconut oil for both edible oil and for skin care products, as a way to create employment and increased income opportunities for rural Kenyan families. We have chosen to use a tool called microfranchising to accomplish our goals. Yehu Microfinance employs 50 Kenyans and helps 15,000 clients along the South Coast of Kenya and Coast Coconut Farms has created employment for nearly 100 Kenyan families, including the farmers who harvest the nuts, as well as microfranchisees who process their own oil from their homes, to our team who works at the central processing facility in Ukunda.

I believe firmly that the way to aid Africa is to find ways to create sustainable employment. To accomplish this, we need to encourage direct foreign investment, increase entrepreneurship and business education on the continent, and get real support from the governments in Africa to do it. It is so difficult to invest in Africa and do business, mainly due to government barriers, taxes, customs fees, red tape and general lack of support. Corruption is still endemic. Our success has only come because we have found some wonderfully capable Kenyans to run these organizations. A tremendous challenge, as some have mentioned before, is to find the talented, honest and educated Africans who can be the entrepreurs or the managers of such businesses. I know they are out there, because we are lucky enough to have found them. But we need more of them and we need to know how to find them. African entrepreneurs need more support to find funding and have an infrastructure that allows them to do business. I believe things are changing in Africa and the future is very bright. There are still tremendous obstacles to overcome and if we can help the ministers and the governments see that much of what they do hinders entrepreneurship, rather than to aid it, we will begin to see a whirlwind of economic activity.

I would love to hear from Adet Kachi, our CEO at Yehu Microfinance Trust, or David Okello, our general manager from Coast Coconut Farms, weigh in on this discussion.

Thanks again for a great thread and for all those here who have contributed and are making a difference. We are making a difference, one person at a time.