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Entrepreneurs

The Profits That Drop From The Bat

Guanomad is a company bringing profit to one of the poorest regions of Africa with the help of bat droppings.

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The dining room table is set, with three pieces of cutlery on each side of the dinner plates. The wine is flowing and hors d’oeuvres are being served. The CEO of Guanomad, Eric Rajaonary, sits at the head of the table with his CFO, Anja Randrianalison, to his left and his sales team to his right. Tonight, they are celebrating their nomination by the Africa Awards for Entrepreneurship (AAE).

Less than a month later, this growing company based in Antananarivo, Madagascar, beat 11 other companies from the rest of the continent to be named the most outstanding small and growing business for 2013 by the AAE. The product that earned them this accolade—bat droppings.

“It all began in 2005, where, after a few discussions about the possibility to find bat guano in Madagascar, and inspired by the Peruvian seabirds guano, I decided to make a 180-degree career change in setting up my own company,” says Rajaonary.

The former accountant saw potential in the fertilizer business and ventured into the southern caves of the island in the Indian Ocean to look for bat guano. In the first year of production, the company sold only 400 tons of compost. Today, the company produces 1,500 tons of guano a year with exports to Europe, Canada and the Caribbean. This year, the target is Africa.

Dinner is served, but before anyone can take a bite of their meal, Rajaonary makes a toast to his team and, of course, the bats of Madagascar. In a country known as one of the poorest in the world according to the World Bank, Guanomad is an example of how one simple idea can provide work for hundreds of people.

Although Rajaonary was born in Madagascar, he spent a large part of his life in France as a student and then an accountant. In 1998, he left Europe and moved back to Madagascar looking for opportunities in the private sector.   Leaving Europe was a big risk, but one he urges other African entrepreneurs working abroad to take.

“Agriculture, new technology, health and education. Africa has the brainpower. The continent needs these people to come back. However, these people need better incentives,” he says.

What really makes the company stand out is Rajaonary’s dedication to helping his community and building a self-sustainable economy. Madagascar has one of the worst malnutrition rates in the world with nearly half of its population of 20 million not getting the required food to live healthy lives, according to the National Nutrition Office (ONN), a government body aimed at eradicating this problem.

Rajaonary believes that Guanomad is a solution because it helps grow crop throughout the country and if used correctly, could help feed millions. The company goes so far as to train local farmers on how to use the product and often gives tons of Guanomad away for new farmers to try.

Unlike chemical fertilizers, Guanomad doesn’t damage the soil or contaminate any of the waterways through nitrification, says Mirana Rakotovelo, the director of marketing and communication. The product is 100% environmentally friendly and can even help repair damaged soil in some cases.

These values of giving back to the community are also felt in the Guanomad offices.

“We really feel at ease working in a friendly atmosphere,” says Guanomad employee, Christian Rahelison, who recently joined the team.

“Secondly, working in an environment like this affects us positively, not just as work but our quality of life as well. There is just less stress,” he adds.

As the celebrations for their nominations continue, Rajaonary turns to the DJ and instructs him play some Zamba tracks—an Argentinian style of music. The staff gathers on the dance floor and start dancing to the moves on the screen. Most of the female employees take the lead as the male employees shy away from moving their hips. Rajaonary, however, isn’t afraid and makes his way into the front of the row ready to jive with the best of them.

The entrepreneur says he doesn’t intentionally try to make the company feel like a family, but the relationship between the top management and all the employees is based on trust which makes everybody feel at ease.

He thinks the future is bright for Guanomad and attributes much of his success to innovation and good management. He also believes that being a socially responsible company, tends to work in his favor as it builds a relationship with the local farmers and people of the country.

As the night winds down, Rajaonary keeps dancing and spurs his staff to do the same. Most of the team moves outside for a break. Everyone is smiling and when the boss comes out to join them, the level of enthusiasm remains the same.

The team moves to the entrance of the house where five vehicles are waiting to take everyone home. It’s an all-round good feeling, except that work starts at 9AM the next day. The team dread the morning wake-up call, but they know Rajaonary will be the first at work and they don’t want to let their boss down.

Billionaires

How To Become A Billionaire: Nigeria’s Oil Baroness Folorunso Alakija On What Makes Tomorrow’s Billionaires

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One of only two female billionaires in Africa, with a net worth of $1 billion, Nigeria’s oil baroness Folorunso Alakija elaborates on the state of African entrepreneurship today.

The 69-year-old Folorunso Alakija is vice chair of Famfa Oil, a Nigerian oil exploration company with a stake in Agbami Oilfield, a prolific offshore asset. Famfa Oil’s partners include Chevron and Petrobras. Alakija’s first company was a fashion label. The Nigerian government awarded Alakija’s company an oil prospecting license in 1993, which was later converted to an oil mining lease. The Agbami field has been operating since 2008; Famfa Oil says it will likely operate through 2024. Alakija shares her thoughts to FORBES AFRICA on what makes tomorrow’s billionaires:

What is your take on the state of African entrepreneurship today? Is enough being done for young startups?

There are a lot of business opportunities in Africa that do not exist in other parts of the world, yet Africa is seen as a poor continent. The employment constraints in the formal sector in Africa have made it impossible for it to meet the demands of the continent’s working population of which over 60% are the youth. Therefore, it is imperative we harness the potential of Africa’s youth to engage in entrepreneurship and provide adequate assistance to enable them to succeed.

Several governments have been working to provide a conducive atmosphere which will promote entrepreneurship on the continent. However, there is still a lot more to be done in ensuring that the potential of these young entrepreneurs are maximized to the fullest. Some of the challenges young startups in Africa face are as follows: lack of access to finance/insufficient capital; lack of infrastructure; bureaucratic bottlenecks and tough business regulations; inconsistent government policies; dearth of entrepreneurial knowledge and skills; lack of access to information and competition from cheaper foreign alternatives.

It is therefore imperative that governments, non-governmental agencies, and the financial sectors work together to ameliorate these challenges itemized above.

The governments of African nations should provide and strengthen its infrastructure (power, roads and telecom); they should encourage budding entrepreneurs by ensuring that finance is available to businesses with the potential for growth and also commit to further improving their business environments through sustained investment; there must also be a constant push for existing policies and legislation to be reviewed to promote business activities.

These policies must also be enforced, and punitive measures put in place to deter offenders; government regulations should also be flexible to constantly fit the dynamics of the business environment; corruption and unethical behavior must be decisively dealt with and not treated with kid gloves. We must empower our judicial system to enable them to prosecute erring offenders with appropriate sanctions meted out. There should be no “sacred cows” or “untouchables”. The same law must be applied to all, no matter their state or position in the society; non-governmental organizations can also provide support for them through training and skills acquisition programs that will help build their capacity; they could also provide finance to grow their businesses; more mentorship programs should be encouraged, and incubators of young enterprises should be supported by public policy aimed at improving the quality of these youths and their ventures; and also, avenues should be created where young entrepreneurs will be able to connect, learn and share ideas with already successful well-established entrepreneurs.

What, according to you, are the attributes needed for tomorrow’s billionaires?

There is no overnight success. You must start by dreaming big and working towards achieving it. You must be determined to succeed despite all odds. Do not allow your setbacks or failures to stop you but rather make them your stepping stone. Develop your strengths to attain excellence and be tenacious, never give up on your dream or aspiration. Your word must be your bond. You must make strong ethical values and integrity your watchword. Always act professionally and this will enable you to build confidence in your customers and clients. 

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Entrepreneurs

The Sun King Bows Out: Legendary Hotelier Sol Kerzner Has Died

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Solomon (Sol) Kerzner, one of the world’s most innovative hoteliers, founder of the Southern Sun hotel group, Sun International and Kerzner International, has died of cancer surrounded by his family at the Kerzner family home, Leeukoppie Estate, in Cape Town, South Africa. Always a maverick, Kerzner was a titan of the hotel and resort industry who redefined the scale and scope of integrated destination resorts worldwide. He was 84.

The son of Russian immigrants, Kerzner was born in Johannesburg, South Africa, in 1935. The youngest of four and the only son, Sol was a working class boy from a rough neighbourhood but he would grow up to become one of the most influential entrepreneurs in South Africa. Having founded the country’s two largest hotel groups — Southern Sun and Sun International — Kerzner would go on to achieve international prominence with groundbreaking resorts that helped transform the tourism industries not only of his home country but of Mauritius, The Maldives, The Bahamas, Dubai and other important international destinations.

Kerzner’s career in hospitality began in 1962 when he decided to leave the accounting profession and purchased The Astra, a small inn in Durban, South Africa. Kerzner quickly transformed this rundown establishment into one of the most popular hotels in the area, a success that whetted Sol’s insatiable appetite for innovation and demonstrated a trademark ingenuity that would define his 60-year career.

Kerzner’s most monumental and controversial achievement was the creation of Sun City.  Here, in an area north of Johannesburg where there were no roads and no infrastructure, Sol imagined and delivered the most ambitious resort project in all of Africa. Commencing work in 1975, over the next ten years, Kerzner built four hotels, a man-made lake, two Gary Player golf courses, and an entertainment center with an indoor 6,000-seat arena, which played host to a world-class roster of artists including Queen, Frank Sinatra, Liza Minelli, Shirley Bassey, as well as huge world title fights, and many other spectacular events. Once again, Kerzner defied the naysayers to train a best of breed workforce and to operate Sun City on a totally non-racial basis. Even the most cynical of visiting overseas journalists had to concede defeat in trying to find racism behind the operation of the vast resort.

Sol is survived by his children Andrea, Beverley, Brandon and Chantal and ten grandchildren. His eldest son, Howard ‘Butch’ Kerzner died in 2006.

Sol Kerzner will be buried at a small, private funeral with only immediate family in attendance.

Back in 2014, the Sun King was featured on the cover of Forbes Africa for the 3rd Anniversary Issue of the magazine.

In 2018 he was honored with the Life Time Achievement award at the All Africa Business Leaders Awards (AABLAs).

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Entrepreneurs

The French Silhouette In Africa: How This Designer Started Her Own Business Despite A Shortage Of Funds

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From glamorous Paris to gritty Johannesburg, Zazi Nyandeni arrived with $2,700 and updated sartorial skills to showcase haute couture on South Africa’s racks and runways.

With just $2,700 in her bank, transferred from her savings account in France, Zazi Nyandeni returned home to the South African fashion industry with her freshly-minted talent. But if Paris was school, Johannesburg proved to be university. Qualifying was never easy.

About 53kms from Johannesburg’s OR Tambo International Airport is Constantia Kloof, a scenic, upmarket suburb in the West Rand, where we meet Nyandeni, the up-and-coming 25-year-old fashion entrepreneur whose brand, Zazi Luxury, has showcased in Paris, the fashion capital of the world.

“I wasn’t really introduced to fashion, but more so to art,” recalls Nyandeni of her early days. “Ever since primary school, I was exposed to paintings, drawings and music by my father when he would come back with artworks from his travels.”

She thought she was going to become a doctor growing up because of her choice of subjects in high school but still pursued design to stay close to art. Thankfully, her parents picked up that she was artistically-inclined and gave her their unstinted support.

In 2013, after high school, Nyandeni took the plane out of South Africa and went on to study fashion at ESMOD, an international fashion design and business school in Paris. She wanted to express herself without saying a word, and found her way. She spent close to six years there, studying full-time for the first three years and partially for the last two, whilst freelancing and interning for various companies in the glitzy city.

“I love to draw and not really to sew. For my first freelance job, I went for a company that would help me work on my weaknesses; I went to Loon Paris boutique and worked on my sewing techniques. They were very strict and meticulous when it came to sewing and I learned a lot about technique,” she says.

The intense training meant that even the inside of a garment had to be as exquisite as the outside and if the hand stitch was incorrect, she had to undo and redo it all over again.

READ MORE: Conscious Fashion: ‘So Much More You Can Do With Discarded Clothes’

“When I asked ‘aren’t we wasting material’, they would say ‘I’m wasting their time’,” she laughs.

The eager fashionista was juggling two jobs; the other was at a PR agency named DLX Paris, which was sourcing brands for international celebrities like American singer-songwriter Kelly Rowland.

She soon came to a realization that in fashion, there is nothing new, which is when she moved to fabric store Boutique Malhia Kent, a French manufacturer of haute couture.

Nyandeni has a soft spot for weaving. She clearly adores fabrics, and this is apparent in the weaving machine she has at her Constantia Kloof studio, placed in a corner of one of the work rooms.

She says her weaving differentiates her from the other designers, as she compares herself to South Africa’s Laduma Ngxokolo of MaXhosa Africa and Greek fashion designer Mary Katrantzou.

“You can make a silhouette similar to somebody else but the real interesting part is the fabric, so Malhia Kent deals with fabric customization, and this is where I learned that in the world of fabric, you are two years ahead of the industry; like Chanel orders their fabric from Malhia Kent,” she says.

That was the space she wanted to be in.

So in between jobs, Nyandeni co-founded Garbage, a business that looked into environment-friendly garments.

“We wanted to speak on the notations of how do we pick up the fashion industry and say that there are other ways to look glamorous and chic and it doesn’t have to be wasteful and terrible to the environment.”

The business ran for a year and sold a few garments, but sadly, collapsed. That inspired the birth of an idea, one that would solely work for her, a business that would include all that she had learned from fashion school and the stylish streets of Paris. She had also personally worked with Katrantzou, building a portfolio and a first collection. She was ready and had under $2,700 in savings.

READ MORE: Owning The African Narrative

Nyandeni returned home to South Africa and registered her company in 2018.

“In my heart, I thought I was going to be able to buy sewing machines and a small car to travel back and forth for business, be able to get staple fabrics that people would love,” she says.

It was not the case, but she started the business despite a shortage of funds.

“I called it Zazi Luxury because it speaks to more of the inside and outside of a garment and the technique used which is the core of the business. The inside is about matching the outside; I should literally be able to wear it inside out, and if not, it’s not [a Zazi Luxury product].”

Her first client was South African comedienne Tumi Morake referred by a mutual friend, and later actress Zenande Mfenyana, but currently, her clients are also doctors, lawyers and drawn from the corporate world.

“In the beginning, the business was focused on couture and it developed a bit more into business such as television, dressing anchors, and we also have ready-to-wear garments. We are broadening the business to other boutiques too.”

Zazi Luxury recently showcased at South Africa Fashion Week. This year, she will be working on a fourth collection that will be both couture and basic women’s workwear garments but featuring the Zazi aesthetic.

Zazi Luxury currently employs seven young enthusiastic fashionistas; one of who is Lebohang Ketlele, who has worked with Nyandeni for two years.

“I am a dressmaker and stylist. I don’t think I would know the things I know now if I wasn’t working here, we have dressed celebrities and that is a great experience,” attests Ketlele.

Inspired in Paris, but made in Africa, Zazi seems to have made the cut.

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