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‘I Started Avoiding Calls From Creditors’

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On the day FORBES AFRICA meets Gavin Mkhabela, the sun is shining as bright as he had hoped his future in business would be when he resigned from the banking sector. He thought he would be the person that would clean every working space across Africa, but little did he know that it would be his bank account that would be cleaned out.

At a business park in Midrand, 30kms north of Johannesburg, Mkhabela is energetic and full of life, unlike six years ago when he was broke and depressed.

“All I did was to wake up, eat and sleep again,” he says.

It started in the basement of his work place, where he had spent four hours in his car contemplating his hasty resignation.

“I like to believe that I am a very creative person and the corporate industry tends to be stagnant at times. There are certain ideas which you may not implement because they are just not ready for them. My lifestyle was also inflated but not in accordance with my income at the time,” he says.

Soon after his resignation in 2011, Mkhabela received his pension payout which he used to start his cleaning company GavCare.

“I was excited; it was my first business. I used my provident fund to start the business,” he says.

Mkhabela  used his credit cards to finance the new business.

“My fiancé and I bought everything new. We even bought a new carpet machine that was being phased out. We were just spending,” he says.

READ MORE: Slaves To Debt: Oh, What We Owe!

Things started well for the young entrepreneur after he received contracts with corporate giants, such as Standard Bank and Nampak, and a few local law firms.

In 2012, he sold 40% of his business. Then, in 2013, he was chosen for a business mentorship program in Germany, which was in partnership with the government’s National Youth Development Agency (NYDA).

“When I came back from the month-long mentorship program in Germany, everyone was celebrating me. They would say ‘you have made it in life’,” he says.

But his worst days were lurking around the corner.

“Out of excitement, I called my business partner to tell her that my mentor had decided to inject R2 million ($169,000) into our business, and he would donate equipment for our business.”

Soon after, his elation turned to despair.

On a cold Friday morning his business partner pulled out.

“We were at our detergent store in Tembisa when she proposed that she would like to pull out of the business… I still ran everything via my credit card and had overdrafts,” he says.

To make matters worse, GavCare was in a cash flow crisis.

“Our company’s financial controls were a mess, there was money coming into the business but more money went out. We also had more people working for us than we actually needed. Our operational costs far outweighed our income,” says Mkhabela.

He was also living beyond his means.

“My biggest mistake was to continue living a lifestyle that I lived when I was working in the corporate world. Most of my provident fund payout went to buying the company’s equipment and keeping the business afloat. I started skipping my monthly repayments, but even worse started avoiding calls from creditors,” he says.

“I got a lot of judgements under my name and was eventually blacklisted by creditors. We took business loans and I extended my credit facilities on my personal capacity in an effort to keep the business going for two years. I also went to loan sharks, an even more [costly] mistake that almost put my life at risk. It was all in an effort to survive and help my financial situation every month the loan amounts from the loan sharks will increase as I couldn’t settle them.”

He then fell into depression.

“One by one, I kept losing things and getting more in the red. I got depressed… My relationship with my fiancé also started to suffer, because I had no financial contribution to the relationship. You know when the man loses the ability and the power to provide, you drive your woman away,” he says.

Mkhabela then got the dreaded call.

“All I did for months was to sleep, wake, eat and sleep again. Then the repossessor called me,” he says. “They took my [VW Golf] GTI, my furniture and every other thing I had worked so hard for. Luckily my house was paid up,” he says.

“It was at that point that I realized that I needed to get up and do something,” he says.

READ MORE: South African Billionaire’s Fortune Plunges More Than $2 Billion In A Day Amid Accounting Scandal

Even though he was down, he was not out of ideas.

“I bounced back in 2014, when I decided to become a financial advisor so that I could save others from being in the same situation as me,” he says.

Mkhabela says he now has over a thousand clients. In 2016, he published his book, Financial Planning 4 What? The book addresses the problems experienced by many regarding personal finance.

“I wrote the book on financial planning and started developing an interest in educating people about financial management from a personal and business finance point of view. It stems from my whole experience because all that was needed was proper financial controls and proper planning,” says Mkhabela.

Looking back, he wishes he did things differently with his business and his business partner.

“I did a lot of introspection in the manner in which I ran things, because I studied a business course,” says Mkhabela.

Mkhabela’s worst day was a lesson that can’t be taught in lecture halls. It is also a lesson he’ll never forget.

Entrepreneurs

What Will It Take To Close The Funding Gap For Black Female Founders?

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If you’ve heard the statistics once, you’ve probably heard them a thousand times: Of the nearly $100 billion in venture funding that goes to entrepreneurs in America, less than 3% goes to female founders and just 0.2% goes to black female founders. 

There’s a growing consensus that venture capital’s race problem needs to be fixed.What’s less clear is precisely how to start closing the massive gulf. And at the inaugural Black Women Raise conference in Manhattan on Friday, a gathering of some 80 black female founders, a series of candid conversations laid bare the frustrations around the lack of an obvious path forward. In several raw moments of interchange, however, some answers started to emerge.

Investors “could ask different questions,” Charles Hudson, founder and managing partner of Precursor Ventures, said during a panel conversation with BBG’s Susan Lyne, First Round Capital’s Hayley Barna, and Female Founder’s Fund Sutian Dong. “There are all these questions—‘Well, do you think she can recruit? Do you think she can hire?’—I know what’s behind that question.

It’s ‘Do you think she can get people to work for her because she’s a black woman?’ And people ask these, what on the surface sound like innocent enough legitimate questions about investments, but they’re not innocent. They’re loaded. And you learn a lot by the questions people ask.”

Despite the existence (and, arguably, preponderance) of these loaded questions, Hudson and the others cautioned the entrepreneurs in the room against becoming disillusioned with the traditional venture capital community. Instead, they said, minority founders should prioritize investors who have a track record of investing in entrepreneurs who look like them.

“Vet investors up front. Don’t let them waste your time only to give you a half-ass answer after you spend an hour with them or even two weeks later,” said Barna, who started her venture capital career after successfully cofounding e-commerce darling Birch Box. “Just ask, ‘Is this in your sweet spot?’”

Dong noted that investors should be self-monitoring for where they’re over- and under-indexing, too. “We’ve said we don’t like the ratio of founders in our portfolio. About half are nonwhite, but only two are African-American. So we asked our network who we should be talking to,” she said.

It can be hard, in an open and on-the-record forum, to ask the hard questions about investing in underrepresented founders—much less to receive forthright answers to those questions—but to the credit of the Black Women Raise attendees, no one shied away from speaking about the reality of her experience as a founder of color.

“Everyone talks about the ‘friends and family round.’ I raised $63,000; I am the friends and family round,” quipped Star Cunningham, founder and CEO of health management platform 4D Healthware. But underpinning her self-funding, Cunningham continued, was a lack of capital access. “I have debt, because I had to get it, because no one wanted to give me any money. So what are you, as investors, going to do to look at our companies differently?”

Barna’s reply: Don’t be afraid to talk about your distance traveled. “The same stories about people getting straight A’s from Ivy League schools isn’t what gets us fired up; it’s instead hearing about how someone put themselves through med school from driving an ambulance,” she said. “You might think that you’re not supposed to talk about your life story, but I think it’s an important data point in helping [investors] make the right decision.”

This isn’t to say that a little bit of information and clever storytelling will fix the funding gap for founders of color. Viola Llewellyn, cofounder of African fintech platform Ovamba, pointed out as much, saying that many of the investors she’s come across don’t seem interested in asking the questions that lead to the sorts of decisions Barna is referencing. 

“Here’s the problem: No one gets punished intellectually, emotionally, or financially for saying no to black women or to Africans. You will instead be congratulated if you don’t make the ‘foolish mistake’ of investing in something that doesn’t fit into the preconceived ideas of what success is,” Llewellyn said to Hudson, Lyne, Barna and Dong. 

“At what point do we find a way to tell the story of the fool that said no?” she continued, to applause from the room.

Hudson waited a beat, and responded with empathy.

“There’s a million reasons [for investors] to say no, but until we have more success stories, I think there’s always an easy out for people to say, ‘No one has proven to me that investing in this way and this type of person works out.’ It’s intellectually lazy and it’s wrong,” he said. “You have every right to be angry.”

Angry, yes, but also motivated. Among the clearest takeaways from the conversation is that one of the best ways to change the system is to start from within. In Silicon Valley and Arlan Hamilton parlance, fight pattern-matching with pattern-matching.

“More black women need to control capital, in whatever form that may be,” Dong said. “More black women need to be controlling capital to put that into companies run by black female founders.”

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Masai Ujiri’s dream of harnessing untapped African talent

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The President of Toronto Raptors, Masai Ujiri, on his adoration for Africa as a continent filled with unlimited potential and talent.


The tall man in sport, Masai Ujiri, is a name in professional basketball far beyond the borders of Africa and his native Nigeria.

Born in England but having grown up in Zaria in Africa’s most populous country, Ujiri’s adoration for Africa sees him on the continent often, inspiring the youth.

“Africa is no more afraid. We are not afraid of anybody anymore. The continent is bold. The people are bold,” says Ujiri, when FORBES AFRICA meets him in Johannesburg in November at the Africa Investment Forum in which he participated.

The continent has a special place in his heart.

The President of the Toronto Raptors in the National Basketball Association (NBA), also founded Giants of Africa (GOA) in 2003, as a way of harnessing budding, untapped talent.

“As long as I am in a position where I am able to, we have to give the youth a chance. We have to pave a path for them and there is nothing I can’t do. I have to do everything, it is an obligation, I have to be an example for them by creating that pathway,” he says.

Ujiri, who started playing basketball at the age of 13, travels to Africa every August to visit the GOA camps across seven countries on the continent, training young boys and girls to be leaders in both sport and everyday life.

He says he draws inspiration from each and every country in Africa, and the feeling is inexplicable.

The history and culture are a constant reminder of his years growing up in Africa.

Whether it is in Kenya, where his mother was born, or the lasting friendships in Rwanda, Senegal or Nigeria, each country holds special memories.

Apart from the numerous trips in and out of the continent, 2018 granted Ujiri a rare once-in-a-lifetime moment.

This was in July when Barack Obama, the former president of the United States, visited Kenya, and with him, Ujiri opened a basketball court in the country.

Ujiri’s outreach program GOA launched it at the Sauti Kuu Foundation Sports, Resources and Vocational Centre in Alego; familiar ground for both leaders.

Managed by Auma Obama, Sauti Kuu, much like GOA, is focused on youth development.

“To spend that time with somebody that Africa means so much to, meant so much to me and so much to Auma. We are trying to inspire youth, we built a court that is going to impact the youth and that was special,” says Ujiri. 

Being able to scout African talent is what is imperative for Ujiri, and it all comes down to building facilities to help the youth play basketball.

Ultimately, his dream for Africa is not only to see material wealth but for talent to go beyond what he has achieved.

“My dream is to have one of the youth become bigger than me, and bigger than everybody. People think I always dream of building this and doing that but I want one of these kids to take everything that they learn and do better in each and everything.

“I love the continent; I love the culture of different places. I am almost like Anthony Bourdain [the late American celebrity chef], that is how it really is with basketball, with the culture, the people and the food,” says Ujiri.

Staying true to his African roots, when we meet him, Ujiri speaks about his favorite yam and stew dish that he says reminds him of his childhood.

It’s such memories that see him taking the long-haul flight out of Toronto to Africa each year.

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Brewing Success: Lessons From A Beer Baron

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Canadian John Sleeman shares his entrepreneurial lessons with Africa.


cis not your typical textbook entrepreneur. His belief in what it takes to be an entrepreneur is so controversial that his advice is no longer welcome in MBA classes. The white-haired charismatic brewer, who re-established his family’s brewing business in 1988 as one of the most successful in Canada, offers sage advice to African entrepreneurs, although he has no plans to expand in Africa – yet.

Nonchalantly, in his automated beer manufacturing plant in Guelph, Canada, surrounded by people enjoying his craft beer, Sleeman says he believes entrepreneurs are born, not made. He argues that unless you are prepared to go bankrupt, work over 80 hours a week, lose your friends, face the prospect of divorce, put your house on mortgage and miss meeting friends for drinks on Fridays, then entrepreneurship is not for you.

He should know. This is the toll he took to restart his family business. It had lost its licence and was banned from the market for 50 years in 1933. This was for smuggling beer during the roaring 1920s by brokering deals with bootleggers and gangsters like Al Capone when prohibition set in in Canada.

Passionately, the beer baron, who plans to open a micro-distillery later this year, and is considering expanding his business in either the eastern or western parts of Canada, tells FORBES AFRICA: “If you want to be an entrepreneur, be very focused on what you want to achieve and don’t let people talk you out of it. If it is a dream, pursue it until you are successful.”

He attributes his success to surrounding himself with the right people. They will make or break your business, says Sleeman. You should be ready to change your business model if the current one isn’t working, he adds.

In his own case, he did this after his colleague advised him that rather than opening up new breweries across Canada, he should buy existing ones that share Sleeman Breweries’ crazy passion for beer and authenticity.

Sleeman reckons you shouldn’t grow so big that you lose your entrepreneurial flair, first-mover advantage and risk-appetite, but you also shouldn’t remain so small that you get knocked out of business or get bought out by someone who does not see your vision and wants to dismantle you, as it almost happened to his business in 2006. If you do sell, reminisces Sleeman, sell to someone who sees your vision, like Sleeman Breweries did, when Japanese company Sapporo saved the Guelph-based firm from a hostile takeover.

But that’s history. Since then, Sapporo has helped fund research and development and training for the business, whose humble, down-to-earth founder is now taking it on its next spirited journey.

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