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FORBES AFRICA has told many spellbinding business stories in its five years. The story of its own difficult birth is one of the most riveting.
The idea of the pan-African business magazine was born in the heart of a financial crisis which wiped out many investors and left businesses lucky to survive. The media suffered the most.
In the depths of the downturn in 2007, soon after launching CNBC Africa, a business and finance TV channel, the two founders, Rakesh Wahi and Zafar Siddiqi, wanted a magazine. It was the worst time to launch.
“The whole publishing market was collapsing around us. To launch a new title at that time; people externally would have said you are foolish. Some of our other shareholders did not want to invest in the publishing business owing to the economic downturn,” says Wahi.
The pair refused to throw in the towel.
“I had a strong feeling this was going to work. When I told Zafar about it, he only asked if how I felt about it and I told him that the brand would be an instant success and after his thumbs up, we ran with it.”
Towards the end of 2009, a meeting in New York sparked the interest in joining the worldwide FORBES family. The magazine has a string of franchises around the world, from FORBES MEXICO to FORBES INDONESIA.
Wahi followed his gut, in the face of scepticism.
“Every time we spoke about FORBES, people’s eyes would light up,” he says.
It was the right time, he believed. The pair waited for the market to turn around slightly and made their move.
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“We didn’t like that very few African business leaders had made it into the international version of FORBES… people didn’t understand that there is so much entrepreneurship going on in the continent,” says Wahi.
It wasn’t easy. Building a pan-African magazine was expensive and complicated; but the gap in business and finance reporting in the continent was there to be filled.
It took about two years to complete the legal agreements of the franchise. The most difficult challenge was hiring the right people to steer the magazine to the top. Wahi’s 13 years in the Indian army, where he had become one of the youngest to receive the Vishisht Seva Medal (a military decoration in India) in 1986, helped.
“The army teaches you about looking after people. The core of it is that you have to do things together and you have to inspire people.”
He brought these principles with him to the world of entrepreneurship.
“When we were looking at finding an editor for the magazine, I searched around trying to see who would be the right fit… I was impressed by the experience people brought to the table but something was always missing… Chris Bishop’s name came up because he had done a great piece of work for me a couple of years before that, and impressed, so we took him on… He said he would even do this job for free,” recalls Wahi.
Magazines were in trouble everywhere. In the United States, according to MediaFinder, 152 closed in 2011 and 82 in 2012. In South Africa, Heat, Seventeen, FHM, Sports Illustrated and Shape are a few magazines that shut down because of declining advertising, circulation and competition from online.
Despite this, on September 28, 2011, on a night of glitz and glamour in Johannesburg, billionaire Patrice Motsepe unveiled the historic first cover of FORBES AFRICA.
It turned out that Wahi’s decision to hire Bishop was the right one. In just five years, the team has turned FORBES AFRICA into the leading business magazine in Africa against the odds.
The magazine came out ahead of its competitors in the IPSOS Affluent Survey Africa in 2014 and 2016. The independent research study, released on August 4, shows FORBES AFRICA reached 163,000, or 4.7%, of the 3.4 million qualifying adults, aged between 25 and 64, across seven markets.
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“What we have managed to achieve in just five short years is truly remarkable. Our success is attributed to the hard work and dedication of our teams from across the continent,” says Sid Wahi, Executive Director at ABN Publishing (FORBES AFRICA).
The IPSOS 2016 figures show a 7% increase from the 2014 survey.
“As the founding editor of this magazine it gives me immense pride to see our circulation figures increasing; all this at a time when magazine circulation around the world is falling. I think this is a tribute to the hard work and determination of our young band of highly talented journalists,” says Bishop.
FORBES AFRICA’s work has been recognized by various accolades awarded to the journalists and the editor. The hard work is also appreciated by readers. In Zimbabwe, entrepreneur, Blessed Mushamiri, says he drives around the city looking for a copy each month.
“Sometimes I have to drive to five different uptown shops to bump into one but I don’t stop looking. If I can’t find one, I ask people in South Africa to send me some copies. When I read FORBES AFRICA it engages me in an affair of pure pleasure, an exciting brush with business in Africa that shows me, as a young entrepreneur, that I can participate in something rare and thrilling. It is a must-read for every businessperson,” says Mushamiri.
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In West Africa, Emeka Akano, CEO and Co-Founder of Jara Mobile Ltd, says reading about entrepreneurs from different backgrounds who make it to the FORBES lists has inspired and motivated him.
“Features in the prestigious FORBES AFRICA magazine have gone a long way in giving me much more exposure to a credible audience, increased my personal profile beyond measure, opened doors for new business opportunities and business connections,” says Akano.
No matter the praises, Wahi says there is still more work to be done. He wants to grow the magazine to an even bigger success story, as with many of his other businesses.
Wahi is a smart entrepreneur and risk taker. An audacious one, five years ago, put this magazine in your hands.

Behold The Business Bible Of Africa

The future is difficult to predict; perhaps the solution for entrepreneurs to stay afloat is to create it.
This is when high-growth asset classes, in the form of stocks, bonds and their cash equivalents, are something that entrepreneurs should enjoy having in their personal portfolios. They make it more comfortable for an entrepreneur to take risks. If an entrepreneur’s business venture fails, an asset class will act as a soft cushion for them to fall upon until they are able to rise again.
Real estate is a safe but overrated investment option. Even celebrities are given this clichéd investment option to safeguard their future. An advantage of real estate is you can choose whether to invest your money in commercial buildings, like office blocks, shopping centres and industrial buildings, or residential buildings, which includes apartments or houses, in the form of holiday houses or rental properties.
But, this is advice anyone can find on Google, or the first thing your financial adviser will tell you. The problem is some of these properties have an annual growth rate that is comparable to leaving your money in a savings account at the bank. Basically, any financial adviser who talks about property as a core investment is an amateur.
Successful African entrepreneurs need to spread their wings and invest in multiple asset classes.
Passive fund management is quickly taking over from active fund management, which charges high management fees, yet rarely outperforms the market. When you claim your money back, the money reflected on paper at the time of payment will be deducted to leave you an amount that will not make you smile.
Larry Fink, Founder of BlackRock, the largest global fund manager with $4.3 trillion in assets under management, noted an emerging trend of massive amounts of money that are flowing from active management to passive management.
Low-cost passive indexation fund managers are not yet popular, but they are the future, with undeniable value proposition. Entrepreneurs who want to secure their family’s future should consider passive asset managers, with guaranteed returns and the option to tailor your indices to those that are performing best in the market.
My advice is to consider becoming an angel investor of about 10 funds in start-ups, and small and medium-sized companies. They can be risky, hence the small percentage, but if you make it, the rewards are huge. This will also be an exciting experience for an entrepreneur to help other entrepreneurs grow, similar to what Peter Thiel did with Mark Zuckerberg and Facebook. It proved to be the best decision he made after co-founding PayPal with Elon Musk and Max Levchin.
Many billionaires become angel investors in start-ups around the world, from China to Germany, Kenya, the United States and India. They claim the experience is more rewarding than just trading on the stock exchange.
Jimmy Wales, Founder of Wikipedia, is a small angel investor in Quora, which has built an online community of intellectuals. Steve Case, Founder of AOL, funded dozens of start-ups through his investment firm Revolution LLC, where he focuses on growing them.
Depending on how big your bank balance is, you may consider investing in art, antiques and vintage cars, like Aston Martin, which is one of the few cars on the planet to appreciate with time.
However, paintings and other vintage items, is a game only the rich can play. If you have really made it as an entrepreneur, it will suit you to have these types of items in your portfolio. China’s millionaire art collector, Li Guochang, is preserving his wealth this way.
If you don’t have piles of cash, you need not worry. As an entrepreneur, you don’t need to be it to start participating in asset classes to secure your financial future.

Become An Angel  To Avoid  Investor Demons

DJ Kumbula is a brisk, no-nonsense entrepreneur. If you look closely, beyond the sharp suit and sculpted face, you can see traces of tough times that steeled him for risk.
The journey began in the dusty road of Chipinge, a tea planting town near the border with Mozambique, in Zimbabwe’s Eastern Highlands. Here he woke before the cock crowed and worked barefoot in the market.
“We woke up very early, scrubbed the floors and made breakfast before going to school. My mother wasn’t very educated so she started knitting jerseys and my siblings and I were the sales people. She also had a big garden and we grew vegetables on it after school and sold them when ready,” says Kumbula.
At high school, Kumbula graduated from market to salesman.
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“My parents invested the hard earned cash into a grinding mill and small shops and by the time I finished high school I was in a private school funded by my parents. My parents inspired my dreams to have my own business. They had nothing but I saw them work hard to change their lives,” he says.
Kumbula moved to Johannesburg where he met fellow chartered accountant, Zakhe Khuzwayo, while working at Rentworks, an independent rental and asset management company. While there, they saw the demand for equipment thrown away by most companies in the industry.
The pair teamed up to open InnoVent, a rental and asset management company with a twist, in 2003. They squeeze every dollar out of a laptop by renting it over and over before selling it.
“InnoVent rents out equipment to clients, for example, to corporate clients for three years. When those computers are obsolete and can’t be used by those clients who need fast speedy technology, they bring them to us and our other business, Qrent, refurbishes the equipment and re-rent it into a second market to someone who doesn’t need high powered equipment,” says Kumbula.
Then there is a third phase.
“We put in, for example, 40 computers in a lab for a dollar per child per month and it means each child has access to a computer and the computer is maintained for three years. We also offer these computers to teachers and deduct monthly payments for 12 months from their salaries.”
When they opted to start the business, Khuzwayo had just qualified as a chartered accountant.
“When DJ came to me and told me about building a company like this, I jumped at the opportunity. I had no children or any responsibilities. Not once did we ever doubt that this was going to work,” says Khuzwayo.
They swapped their well-paid jobs for the uncertain world of entrepreneurship.
“We felt that there was a gap. We had seen some good and bad things in the company and we decided to build a better model, take what we had learned and add a number of things to create a better model we believed would work better for the clients we targeted,” says Kumbula.
It was easier said than done. For seven months, the pair worked day and night with zero clients on board.
“One of the companies that funded us gave us a desk, two chairs and a phone in a tiny room as our first office. We were convinced the business would work… We knew it was just a matter of time. We had structured our financing to allow us to survive for 12 months without any income and we did,” says Khuzwayo.
Nearly 13 years later, they have swapped the small office for a whole building in Africa’s richest square mile, Sandton in Johannesburg.
Where there is a laptop, there is a hidden dollar.

How To Squeeze A Laptop Dry

Its 7:30AM in Victoria Island, Lagos, and across the road from Oniru, a suburb in the city, cars are piled up in front of the Total petrol station. There is also a separate line of about 100 people with empty yellow containers waiting to be filled. Toke Ogunlesi, founder of GQ Shoes, a shoe manufacturing business is number 30 in the queue of irritated car drivers – some of whom slept in their cars.
“This is really terrible, I have been queuing for the past three hours even though I arrived very early this morning. Yesterday, I couldn’t get any fuel and so I decided I would leave the house early today but unfortunately that plan did not work,” says Ogunlesi.
Business has slowed down significantly for his fledgling business, which, like many businesses in Africa’s largest economy, is hampered by severe power cuts. Nigeria has a diversified economy, however, the country’s monetary policy is heavily dependent on oil. The finance minister, Kemi Adeosun, in an interview with Reuters, said the country is expected to post budget deficits for the next two to three years. Reuters puts the 2016 deficit at 2.2 trillion naira (around $11 billion).
“Firstly, Nigeria has a revenue challenge, oil prices are low and this is leading to production challenges. We lost Forcados which is a major terminal for exporting crude oil, that means about 250,000 barrels have been shut down and cannot leave the country at the moment, so we are not pushing as much production as we used to. This means the little revenue we are making right now has to be dispersed to finance imports for various things, like foreign exchange (FX) for imports and refineries, normal FX for fuel imports and other production costs,” says Dolapo Oni, an analyst with Ecobank.
“On the other side, the industry also has a regulated pricing structure so marketers are not able to sell at whatever prices they need to sell to recoup whatever costs they incur in the process of buying and selling the petroleum products. So, as a result, most of them are either not ready to sell and keep that loss or, if they had the opportunity, they will sell at a much higher price so that they can recoup the costs that they are facing. They are also faced with higher cost of FX because most of them have to buy their FX from the parallel markets among the various other charges that they face when they also try and load at the depot.”
The restriction of foreign currency in the country has also had a negative impact on the oil market, which is a dollar-denominated business. According to the Shippers Association of Lagos State, the forex restriction has led to 50% of Nigerian bound cargos being diverted to Cotonou, Benin. But there may be help on the horizon.
“I think the situation is gradually easing because we now have FX supply coming from oil and gas companies. The upstream guys, like Shell, Total and ENI, have been tasked to provide about $200 million to some of the fuel marketers to assist them to import more products into the country. This is not a sustainable solution because you are asking these guys to also part with FX, which they also need to invest in other parts of the world where they have operations. They cannot continue to always give us $200 million every month or every year and also I do not know what we have given up as a country to be able to receive that help because there has been a trade-off somewhere,” says Oni.
The current dilemma has however presented an unlikely opportunity for one entrepreneur. Fueledup is an app that has been created by 24-year-old Nigerian developer, Subomi Owo-Odusi. The app is an on demand delivery service, where customers sign up to request fuel.
“It is more of creating a convenience that is necessary. It picks your location naturally with Google location services. There is a request for how much you want and the delivery time. We have three delivery times; there is priority, expectant and flexible. Flexible is within three hours, expectant is within 30 minutes and two hours, and priority is within 30 minutes and an hour. So, take for instance a situation where you wake up and you go to take a shower, by the time you finish getting ready in an hour you realize that your car is already filled up,” says Odusi.
The app is scheduled to be launched in May and has already received a positive response.
“We are speaking to private depots that we can get our supply from. Eventually we want this to become a lifestyle where people ask ‘have you got fueled up today?’”
The company is looking to expand rapidly outside Lagos to other major cities in the country.
A critical success factor for start-ups like Odusi’s in this climate is the cost of goods and services.
“Inflationary measures are rising. Prices have been increasing steadily. It got to 11.3 percent last year and the figure is due to come out this week and I am already hearing that it will be around 12.8 percent, which is significantly higher than the last inflation figure… It is the lesson of the crisis, when you don’t save or put money aside for a rainy day, when the rainy day comes you will be wet,” says Oni.
He believes the government should push for deregulation of the industry to prevent this crisis from repeating itself.
“In a market that is regulated, it is very easy for these conditions to happen because once we have that common pricing structure people tend to come strongly under unions. Once we deregulate this, there is no tendency that the union will tell someone to shut down their station because they know that once others are all not selling, they will make more money if they sell. So, unions go weaker in markets that are competitive.”
The influx of foreign currency is expected to ease the current fuel crisis gripping the Nigerian economy, however, the economic hardships are far from over. The decline in oil prices and corresponding decline in revenues, has had a knock-on effect on the oil sector and other ancillary markets.
“The only way out is that we should allow the market to decide where the naira should be priced at and, as a result, where the products within the economy should also be priced to allow for a competitive business environment,” says Oni.

Fuel Shortage  In The   Land Of Oil

After years of sliding down the World Bank’s Ease of Doing Business index, Kenya finally managed to turn things around and pull itself up to a ranking of 108 out of 189 economies. It is a rise of 28 positions from the previous year. Through wide ranging reforms, the country halted a downward trend since 2011, when it slipped to the position of 109 from 98 a year earlier, 121 in 2012 and 137 in 2013.
The latest ranking is ahead of the average sub-Saharan African ranking of 143. Much of the change is down to the government’s attitude towards economic reforms. The increased focus in the crucial areas of the access to credit; electricity; and business and property registration has yielded positive results.
For instance, the passing of legislation that allowed the sharing of both positive and negative credit information has seen the introduction of three Credit Reference Bureaus (CRBs) in the past four years. Consequently, CRB coverage of adults in the country climbed to 14%, up from 5% in 2014, a development which will simplify aid lending decisions in the country. Furthermore, sound collateral laws helped push the country to 28th position, up from 118 the previous year, and are expected to improve the ratio of private sector credit to GDP in the coming years. The average in sub-Saharan Africa on this indicator stands at 118.
On the issue of electricity supply, the reduction of procedures has cut the time it takes to connect to the grid from 158 days to 100 days. This has led to the total number of users connected to electricity, from March 2013 to date, spiking by 41%. It has also resulted in a 37% jump in the national electrification rate. In all, the initiative helped push the country to position 127, up from 141 in the previous year. Of course, much more needs to be done especially around the areas of reliability and affordability. With this in mind, the recent deal agreed with China to build the country’s first nuclear power station by 2025, with a capacity of 1,000MW, is a step in the right direction. Moreover, plans to expand installed capacity to about 6,700MW by 2017, from the current 2,500MW, should see the country climbing future rankings.
Minor improvements were seen areas such as: resolving insolvency (ranked 144, up from 145), dealing with construction permits (ranked 140, up from 152) and the registration of property (ranked 115, up from 121). The latter, through the automation of land records, has contributed to the rise is the registration of property. Areas that saw a drop in performance include: starting a business (ranked 151, down from 148), paying of taxes (101, down from 99) and the protection of minority investors (ranked 115, down from 114). Areas where performance remained flat are: trading across borders (ranked at 131) and the enforcement of contracts (ranked at 102).
In all, Kenya is on the right path and it’s resulting in reform-driven legislation. Despite the many challenges the country faces, the ongoing reforms herald good tidings for Kenya’s ease of doing business. The Business Registration Services Act, legislation that was recently enacted and not included in the report, should improve the country’s standing even further. The law, by changing the process of business registration, aims to streamline the incorporation of companies, partnerships and firms.
For policy makers, knowing where the economy stands with regards to the ease of doing business is useful. However, it might be more useful knowing the distance to frontier (DTF) scores which are indicated in the same report. DTF scores benchmark economies with respect to regulatory practice, showing the absolute distance to the best performance in each indicator. Kenya’s DTF score stands at 58.24, behind Namibia (60.17), Botswana (64.98) Rwanda (68.12) and Mauritius (75.05).
Be that as it may, Kenya has come a long way and deserves credit. Given the progress so far, aspirations to rise to 50th on the index by 2020 are valid.

ON THe RIGHT PATH

What challenges do women starting new businesses face?
Sometimes women lack confidence. Often men will say I can do it and they will go and find out how to do it. Whereas unless a woman really can do something, a woman will hesitate to put her hand up and say I can do it. The more women bind together and give each other confidence, the better it is. As women get more experienced, and there are more in the market place, things will improve.
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Do you believe in the glass ceiling?
Definitely men are still at the helm, the majority of them. There are women at the top and there are women prime ministers and in America we might have a female president next year. So I think women are breaking through. A lot of women leave the corporate world and decide to start their own businesses. If you are going to say to yourself that there is a glass ceiling and I will not get to the top, it is a limiting factor.
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Are you seeing more women in the C-Suite now?
There are a lot of women. They are still in the minority if you look at numbers across the board. There are women who are getting there. Look at Maria Ramos (Barclays). There are a lot of women in middle management and senior management. Maybe not so many at senior management but there are more women at work these days.
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Your advice to new business owners…?
Definitely go for it but do your research well. Put a little questionnaire together, find out what people think about your product idea. You may have a good idea but your consumers, if you ask them, will help you mould your ideas together.

ShirleyAnthony-3D-Single-Cover

‘Do Your Research’

I wrote an article for a business news website several months ago about South Africa’s need to develop industrialists. The need is simply unavoidable: we incessantly hear about the country’s high unemployment rate in the media. Much is stated yet little is done.
A reader commented on the article, making a rather brash statement, which he is entitled to. He was of the opinion that I was naive for stating that we need to produce A-grade industrialists, instead highlighting the fact that our government should rather focus on mitigating the capital outflows South Africa has experienced in recent times. Perhaps our stringent labor laws are to blame or maybe our sluggish economy has precipitated these outflows. I agree in part; ultimately my point, and the real issue, is that not enough great ideas are being cultivated. There are various reasons such as entrepreneurs continuing to find it difficult to access funding, and our high skills deficiency relative to other industrialized economies.
The tenuous relationship between the private and public sectors cannot be over-emphasized. This issue is constantly debated in the media, illustrated by differing ideologies that the public and private sectors have pertaining to the economy: what should be done and how it should be done. Unfortunately for the greater masses, and more importantly the economic welfare of our country, their issues remain unresolved. The situation with our capitulating mining industry is a perfect illustration of the tipping point that has been reached as far as relations between the state and business are concerned. It comes as no surprise that the sector has cut thousands of jobs and this trend is likely to continue in other sectors.
According to recent data from the Department of Trade and Industry, South Africa’s gross domestic fixed investment to GDP hovers around 20%, well below the fastest growing nations. We can no longer justify our lack of saving as a nation on the fact that we have a growing fiscal budget, placing greater pressure on our budget deficit. There are several countries that face similar challenges, and are considered developing countries by the World Bank, that have significantly higher national savings as a proportion of the national income. The Asian Tigers – Hong Kong, Singapore, Taiwan and South Korea – owe some of the successes of their economic revolutions to substantially higher national savings, which enabled them in part to finance the industrialization of their economies through private investment rather than relying on foreign investment.
This brings me to my next point: South Africa needs to create world-class industrialists now and at a rapid pace. The ‘industrialist’ term has been misused by being prefixed by ‘black’ in recent government economic policy documents. The term has been used to describe what appears to be Black Economic Empowerment benefactors who will be moulded into billionaires. The ruling African National Progress (ANC) party has stated several times its need to create black billionaires. Few would disagree that the emergence of wealthy blacks, including all previously disadvantaged race groups, is necessary in the transformation struggle. The issue is not as much whether the emergence of black billionaires is wrong, but rather the manner in which the government plans to go about it.
The prioritization of creating employment opportunities remains pivotal in curbing the dependency of South Africans on state welfare and ultimately building a society in which the economic benefits of the country benefit everyone. For now, the prospect of higher employment amid the slowing economic growth is inconceivable. Great ideas need to be cultivated. Ultimately it was great ideas that birthed many of the largest corporations the world has ever seen and immortalized industrialists such as Andrew Carnegie and Cornelius Vanderbilt that transformed the concept of entrepreneurship.
The alternative of creating an elitist ‘black’ faction of billionaires through state procurement processes, better known as tenderpreneurship, will not only breed discontentment among the poor black majority, but will be a clear sign that the ANC has never, at its core, been a truly leftist party but is mutating  into a right-wing movement.

More Entrepreneurs, Less Tenderpreneurs

There is little more satisfying than a simple solution to an annoying problem; especially when it makes money. Thomas Edison created the long-lasting lightbulb that everyone could afford; Henry Ford did the same with the family car; in South Africa, 23-year-old start-up entrepreneur Sibusiso Ngwenya has invented an item to close the gap between his pants and shoes.
Ngwenya is a tall man; 1.9 meters in his socks and struggled all his life to find trousers that would fit down to his shoes.
So, he came up with socks to close the gap and made them in bright colors to make the point.
“I was teased growing up and given different names. I deliberately named the brand Skinny Sbu Socks because I thought I had been teased enough and it was high time we celebrate being tall and skinny,” says Ngwenya.
A sock collector at a tender age, his defining moment was reading of two Americans building sock brands.
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A few weeks later, his mother suggested he sell them.
“I had bought 14 pairs of socks for R5 ($0.40) each and I repackaged them and sold them for R25 ($2) a pair.”
He counts former Top Billing presenter Tumisho Masha, politician Tony Yengeni, TV personality Maps Maponyane, celebrity entrepreneur and philanthropist Shaka Sisulu, and the leader of opposition political party the Democratic Alliance, Mmusi Maimane, among his celebrity clients.
“I do such designs simply because I am African. At the heart of what I’m doing, I’m trying to express myself as an artist inspired by their surroundings. Our heritage is what we have to our advantage as Africans. I use that to gain the competitive edge among my international competitors,” he says.
The company also sells to Standard Bank and Cadbury. He makes R100,000 (around $8,000) a month by advertising and selling on the internet. His company employs three people and outsources bookkeepers, legal services and manufacturing staff.
“I am concentrating on building a brand, focusing on craftsmanship, artistry and the engineering of the sock while other brands are mass producing,” he says.
Ngwenya tried and failed to launch a sock store, but is working on Skinny Sbu Socks vending machines.
Skinny Sbu Socks produces five never to be repeated designs every two months.
“As men, our fashion is limited. The only things you have to play around with are your accessories which are very limited. So men want really colorful socks.”
He takes pride in the locally produced products.
“It is expensive to manufacture locally and it takes a long time because of limited colors. In China, for example, it would cost me $0.02 to produce a pair, this side it’s a thousand times more. The factory I outsource employs 60 people so I am comfortable knowing making these socks goes on to feed more than 60 families in South Africa.”
Although Ngwenya shies from divulging details, he says no business is without worst days.
“I recently lost out on a R2.5 million ($200,000) deal because I was not focused. I tried working with PR experts only to realize that I was making a mistake.”
Growing up in a three-bedroom shack in Tsakane, a township to the east of Johannesburg, he was taught love and forgiveness.
“I didn’t know we were living in a shack, I thought we were living in a mansion until someone from school came to visit and made fun of me. When I grew up, I learned that I am enough. I am not better or less than anybody. I am enough.”
His grandmother, Salamina Molokeng, is the force behind his success.
His future plans are to create designs with his grandmother entitled “stories with my grandmother”.
“I want us to promote art. I am an African woman and I want us to showcase every African nation in the sock designs,” says Molokeng.
At the risk of mixing a metaphor that knocks the socks off anything, necessity truly is the mother, and grandmother, of invention.

Socks   The New Tie

When Henri Nyakarundi shut down his trucking business in the United States, he decided to return home to Rwanda. Back on the continent, his entrepreneurial instincts drove him to a novel business venture – solar-powered mobile phone charging kiosks.
Rwandans that return home with dollars in their pocket usually venture into businesses with a degree of comfort. Others prefer white-collar, eight-to-five jobs that the rapidly expanding Rwandan economy offers the western-educated young professionals.
Despite the pitfalls that start-ups face in Africa, Nyakarundi chose a different path. He is at the forefront of developing an energy business that few of his fellow Rwandans understand.
The light-bulb moment that gave birth to his latest venture occurred at an unlikely place for the 37-year-old metropolitan entrepreneur. In 2011, he noticed the difficulties that people in rural areas faced while trying to charge their mobile phones. The supply of electricity is expensive and often unreliable.
“Not only did it hit me that charging mobile phones in places that were not served by the national electricity grid offered me a unique opportunity to serve our people, I also realized that the lucky ones  to be connected to the national grid were finding the power supply to be expensive,” he says.
In Rwanda, electricity consumers are charged $0.22 per kilowatt hour (KWh). This is one of the highest electricity tariffs in the East African region where tariffs are usually between $0.08 and $0.10, according to the World Bank.
Rwanda’s high energy costs are partly attributed to the country’s dependency on expensive thermal resources. Experts say that Rwanda depends on diesel and heavy fuel oils for approximately 40% of the country’s 110MW installed energy capacity. The country imports 14.5MW. Hydropower accounts for 59% and methane gas 1%.
Armed with the statistics of the challenging energy situation in his country, Nyakarundi’s instincts told him that something needed to be done to help rural businesses.
After visiting family in rural areas, he decided to start the green energy company African Renewable Energy Distribution Co Ltd, otherwise known as ARED.
“My company seeks to offer stable and reliable energy solutions, using innovative solutions such as mobile solar cell chargers,” he says while sitting in his office in Kiyovu, a leafy suburb in Kigali.
His belief in his new venture was so strong that he invested more than $120,000 of his hard-earned cash into developing four prototypes of his solar-powered mobile phone charging kiosk.
“My solution serves as a one-stop kiosk for people who want to start a business but are unable to,” he says as he leads FORBES AFRICA to one of ARED’s latest prototypes, recently brought from the company’s contracting manufacturer in China.
To drive sales, ARED developed a cheap franchise model for its clients, who are largely low-income earners.
“The franchise model seeks to empower those languishing at the bottom of the economic pyramid using a technology that is simple, cost effective and has a flexible acquisition plan,” he says.
The mobile kiosk generates its own power, enabling a franchisee to sell airtime as well as provide other telecoms services such as the transfer of mobile money. The charging of phones or other electronic items is done for a minimal fee.
With the success that ARED has had so far, the next prototype will introduce extra features such as internet Wi-Fi technology. ARED charges franchisees $1,000 for the business unit. This includes the mobile kiosk, a point-of-sale system, phone charging accessories and a branded overall.
Franchisees are also given hands-on business training and offered transport. After acquisition of the kiosk, franchisees are expected to pay ARED a $50 monthly fee for after-sales services.
Although breaking into the market was not easy for Nyakarundi, he stuck to his guns. He knew he had something unique and vital to offer Rwandans.
His tenacity is paying off. ARED signed its first commercial deal with pan-African telecom operator Airtel. This will allow ARED to spread across Africa.
Nyakarundi expects to sell more than 500 units of his product over the next three years.
“Though the model has a social component attached to it, the business aspect was designed to be scaled for the entire continent,” he says.
Nyakarundi is part of a growing army of entrepreneurs emerging on the continent.
“Entrepreneurship is gaining momentum in Africa. Innovation is being scaled up and advances in ICT, and what telecoms operators are offering, is testimony that Africa’s enterprise culture is improving.”
He is fortunate that Rwanda is able to offer him a favorable launch pad for his business. Nyakarundi hopes to increase his mobile kiosks from 20 to more than 100 by next year.
Nyakarundi has grand visions for ARED. With the telecom sector booming in Africa, he is set on selling over 50,000 units over the next five years. South Africa, Nigeria, Ethiopia and Kenya are his key target markets.
Like the sun shining over Africa’s plains, Nyakarundi’s future looks bright.

Charged With An Idea  To Make A Fortune

In Nigeria, citizens, businesses and investors are struggling to come to terms with the absence of a cabinet to run Africa’s largest economy. When President Muhammadu Buhari took office, from Goodluck Jonathan on May 29, few would have imagined that there wouldn’t be a cabinet in place, or awaiting parliamentary approval, by the end of June.
Buhari himself hasn’t said much, leaving the explaining to his aides. At the beginning of July, Spokesman Femi Adesina said that “at the fullness of time, the ministers will be appointed.”
There has been speculation that there won’t be a cabinet in place until September. If that is true, it will mean that the new ministers will spend the last quarter of the year coming up to speed with their new assignments, and real work will not start until 2016.
The only presidential staff appointments made by the second week of July were three spokespersons (two for the president; one for the vice president), a State Chief of Protocol, and his principal security aides – one of which was replaced weeks later, for undisclosed reasons.
On July 13, six weeks after the inauguration, the President replaced all the military chiefs and the National Security Adviser (NSA). The key positions of presidential Chief of Staff and a Secretary to the Federal Government, who serves as Secretary to the Cabinet, as well as a liaison between the presidency and the sprawling government bureaucracy, however, remain unfilled.
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<h3>Team Austerity</h3>
Amid the uncertainty about the president’s team, there are, however, things one can bet on. One is that it will be a smaller cabinet than his predecessor’s, which had 42 ministers. But, the degree to which it will be smaller is constrained by a constitutional provision that says there must be at least one minister from each of Nigeria’s 36 states.
The Transition Committee that Buhari set up in May, to liaise with the outgoing government and prepare a smooth handover for the new government, recommended a reduction in the number of ministries from 28 to 19. Going by that proposal, only nine of the existing ministries will not be merged or scrapped: Defence, Federal Capital Territory, Education, Trade and Investment, Finance, National Planning, Labour, Justice, and Foreign Affairs.
Ambitious as the plan might seem, it’s not unfamiliar territory for Buhari. As Head of State 30 years ago, he presided over a wide-ranging regime of cuts: laying off thousands of civil servants and freezing wages, abolishing hundreds of local government areas, and rolling out an austerity budget that slashed government spending by 15%.
Considering that the economy he is inheriting is in straits just as dire as then, chances of another austerity-inflected outing are high. Indeed there’s a cost-saving element to a delay in the appointment of a cabinet and advisers, who will have to be paid generously in housing and travel allowances, and armored convoys.
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<h3>Speculation, Inc.</h3>
In the weeks following Buhari’s unprecedented electoral victory, the rumour mills were agog with news of expected appointments. Documents regularly circulated on social media, purporting to list the persons who had been nominated for appointments. All of them turned out to be false. Early into the new administration, it was reported that Chief Ogbonnaya Onu had been named Secretary to the Government of the Federation, Nigeria’s designation for Cabinet Secretary. Weeks later, the speculations shifted to the still-vacant position of Chief of Staff. News filtered out that retired Colonel Hammed Ali, Buhari’s long-time personal Chief of Staff, had been appointed. Again, it turned out to be false.
The two men have been close to the president since he joined partisan politics in the early 2000s and are still very likely to bag important roles in his government. Other long-time associates tipped for important positions include Tam David-West, who served under Buhari as the petroleum minister when he was military head of state in 1984-85, and Abdulrahman Dambazau, a former army chief and head of security for the presidential campaign. Dambazau, widely expected to be named National Security Adviser, may now be in the running for Defence Minister.
Former state governors, Kayode Fayemi (Ekiti), Babatunde Fashola (Lagos) and Rotimi Amaechi (Rivers) are also expected to be named to cabinet or presidential staff positions. The trio played prominent roles in the Buhari presidential campaign – Amaechi as campaign director-general, Fayemi policy director, while Fashola oversaw fundraising.
Party leaders, like former Governor of Lagos State, Bola Ahmed Tinubu, and former Vice President Atiku Abubakar, are also expected to nominate candidates for presidential consideration, but there is no doubt where the final decisions lie.
<h3>Policy Direction</h3>
Apart from the 800-page report of the Transition Committee, the new government can also count on another 73-page one; the outcome of a two-day summit that the ruling party’s policy directorate, under Fayemi, convened in May; bringing together technocrats, politicians and public officials.
With the support of the United Nations Development Programme (UNDP) and management consulting firm, Bain &amp; Company Nigeria, the summit produced detailed recommendations on several sectors of the government: oil and gas, education, healthcare, security, agriculture and foreign affairs, among others. The reports outlined specific plans for the incoming ministers to implement in the short term, medium term  and long term. As things stand, it’ll be more than 100 days from May 29 before a cabinet is in place, and the incoming ministers will have some recalibrating to do.
For business executives and investors, the reassessing will be an unending obligation. As soon as the cabinet is named, the next round of tea-leaf reading – this time for policy direction – begins.

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2016? NO!

In the United States, 60% of the country’s employment is said to be created by family-owned businesses, though Ted Clark, the executive director at the Northeastern University Center for Family Business, believes this to be an exaggerated estimate. Despite this, family businesses are significant to job-creation, which is why it is important to understand some of the risks that come with them.
From the golden arches of our local McDonald’s, to the swiveling rims and the muscular lines of the latest BMW, we see some of the manifestations of enduring and pioneering multi-generational family businesses. But, the road to success if often paved with threatening challenges and temporary misfortune. Pitfalls such as financial turmoil, hostile takeovers, fraudulent misdemeanors and corporate scandals often plague family businesses.
Most family businesses dislike the idea of incorporating a formal structure to their business as it grows. Such structures would imply tedious forms of communication that may be placed under scrutiny by non-members of the family. Despite this, such a structure would ensure better organization, the avoidance of miscommunication, more profitability and clearer job tasks. One of the reasons many small family businesses lack structure is because they were founded without a business plan. Maintaining conflicts of interest is another tricky aspect of a family business, especially if it operates with a human resources department. Most family-business consultancies recommend that there be no direct lines of communication between relatives.
Family dynamics and business structure do not necessarily work together. In most cases, disagreements in family business stems from an overlap between family dynamics and the structure and policies of the company. Unresolved issues in a family tend to spill over into the business environment, which may stagnate the growth of, or even the continued existence of, the business. Other causes may be the lack of definitive roles that each member is required to respect. Crossing the boundaries of one’s role and assuming unsolicited authority over areas of the family business may prove detrimental to relationships within the business and unproductive to employees. Another common problem is the lack of transparency for non-family employees regarding payment structure, decision-making and career progression.
According to a report, publically-listed family businesses were found to have performed better than non-family businesses during the recessions in 2001 and 2008. Many family businesses fail to make it to the second generation owing to unresolvable family disputes, resisting or ignoring change, poor succession planning and failing to adapt to the latest business and market trends. What may have worked for the founder of the business, may be damaging for the loyal successor. On the other hand, contrasting and conflicting views on how the business must be run is a common cause of failure. Like in any company, a clear and shared vision is required to ensure that all members are working effectively towards the same goal.
The big N-word that most family businesses hate being associated with is nepotism. This is a word that usually sits at the tip of the tongue of a disgruntled employee who may have been sidestepped for a promotion that was given to a less experienced family member.
In some cases, working in a family-owned business may mean limiting your sights to positions that will never lead you to the coveted position of CEO or chairman, often reserved for the company’s blue bloods. It may be in the best interest of some family businesses take a page from the family that founded the LEGO Group. The company chose to ensure the longevity of their business by promoting the first non-family member to head their eponymous toy dynasty in 2004.
While many family businesses come with their complications, it is important that these issues are discussed openly between family and non-family members to ensure the health and growth of a business that intends to grow beyond the first or second generation.

Perils Of the  Family Business

Charm is that intangible quality which draws attraction and creates a connection.
Legendary French actress Sarah Bernhardt defined it as: “You must have charm to reach the pinnacle. It is made of everything and of nothing, the striving will, the look, the walk, the proportions of the body, the sound of the voice, the ease of the gestures. It is not at all necessary to be handsome or to be pretty; all that is needful is charm.”
It’s a key ingredient for success in a social setting, but what about the business environment?
Inner Life Skills (ILS) Master Coach Asanda Gcoyi from South African capital Pretoria says charm is extremely important in business.
Having graduated cum laude with an MBA from China’s Peking University, Gcoyi has worked in Beijing and has coached in intercultural settings in various areas including global leadership development, entrepreneur development and life coaching.
“Some people are really just not charming and they make absolutely no effort to be. There’s almost a lack of awareness about how important this is, especially in business.
“Charming people possess social skills that enable them to go out there and generate business on behalf of their companies. Whether it’s a budgetary request or pitching a new project, charm goes a long way in ensuring your proposal is listened to and even considered,” says Gcoyi.
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She highlights that having charm is far removed from being a “people pleaser”.
“It’s rather the ability to get your way because people can relate to you and your personality, mannerisms and the way you carry yourself inspires confidence. Charm is by nature verbal and non-verbal. Verbal in that you say what matters and non-verbal in that your gestures are synchronized with your words.”
While some professionals may be natural charmers, there are techniques to cultivate a charming manner according to Gcoyi:
Open ended questions, such as “what do you think about….” This invites thought and a considered response which goes a long way in creating more authentic connections with others.
Be a good listener – you can do this in two ways: either by backtracking, which means you use the same words that the other party uses, i.e, pick a word they have used and include it when it’s your turn to speak. The second way is to mirror and match the other party through tone and language (verbal and body). Gestures such as nods need to be appropriate and tasteful and not as if you are rushing a person through what they are saying, or being dismissive.
Eye contact conveys self-assurance as well as saying you care about the communication taking place and you are giving it your undivided attention. It’s important to note that this applies in a Western setting as direct eye contact in other cultures, including some Asian and African, may read it as intimidating or even arrogance or disrespect.
Smile and laugh – a smile is the surest way to win favor in most interactions, but can never be enough in itself. A winning smile is usually accompanied by open and inviting hand gestures for example.
Genuine pleasure – when you are authentic, you speak with others from a place that is not pretentious. Open mindedness tends to lead to a genuine interest in others.
Durban-based Arthie Moore, CEO of Celebrating Humanity International and Co-Founder of the Transformational Leadership Institute, says a charming person “has the type of personality that adjusts to be inclusive of everyone, anywhere and at any time”.
She says John Maxwell’s book, The 5 Levels of Leadership highlights that leadership is about character.
“According to Maxwell, to become a person of influence, one has to have integrity, values and a strong character. To have charm adds to that mix and allows one a journey of continuous growth as a charismatic leader.
“Charming people have the ability to adjust their tone, body language, eye contact and way of interacting to make sure that others feel comfortable in their space. At the same time, they are thoughtful and have meaningful conversations. They do not undermine or overpower with their own opinions. In order to succeed, we need to adjust continually to become more effective. A charming leader who is effective is guaranteed to succeed in leading and inspiring their entire teams. Success just follows on as a natural progression,” says Moore.

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Turn On The Charm

As the third-generation owner of Zippo Manufacturing Co., one question always dogs George Blaisdell Duke: “You guys are still in business?” It’s not that people want to be nasty, he says. It’s just that America doesn’t light up as much as it used to, so it’s a reasonable question for the most famous maker of cigarette lighters in the world. And he has a well-worn answer handy. “Well, of course we are,” he says, reaching across his office desk for Marlboros and his own personal Zippo, a silver one with waves engraved on it. “Business is doing very, very well.”
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Never better, actually. Despite the 50% downturn in the number of U.S. smokers since the heyday of cigarettes in the 1950s, Zippo booked more than $200 million in sales last year – a record – and had the best May and June sales in its history in 2014. FORBES estimates revenue has increased by a compounded 14% in the past three years, thanks to a new, non-smoking CEO, Greg Booth, who pushed the 82-year-old manufacturer’s legendary lighters at a younger audience and expanded business in China. New products – a (legitimately appealing) clothing line and camping gear – and its first retail stores added fuel to the fire. “Zippo has maintained its iconicness,” says Timothy Donahue, an industry observer and editor at Tobacco Reporter, “and it has diversified quite well.” It’s a long way from the first Zippo, created by George Blaisdell after watching a friend struggle to light a cigarette on a windy day in 1932 in Bradford, Pa., a small town in the Allegheny Mountains where Zippo is still based.
He came up with a windproof chimney and the distinctive hinged lid – and guaranteed the lighter for life, meaning Zippo would continue to fix the lighter as long as its owner sent it to the factory. After soldiers received the lighters in WWII, Zippo successfully marketed itself with a utilitarian, made-in-America image for the following half-century.
Nonfamily CEOs ran it after the 1978 death of Blaisdell, who left Zippo to his family. By the 1990s his daughter Sarah Dorn and her son, Duke, had bought out the rest of the clan. “The more family members that are owners, the more directions that they think the company should go. Sometimes the privately owned companies don’t make it,” says Duke, who has since acquired his mother’s stake, too. “Sometimes people get impatient with the lack of temporary success, shall we say.”
Zippo hit just that kind of a rough patch in the 2000s. Duke won’t comment on how far sales plummeted, but his displeasure with Zippo’s  performance can be felt in his decision to make Booth CEO in 2001. (Booth had been running Zippo’s knife making subsidiary.) With only himself to please, Duke could wait for Booth to find the solution. The average age of Zippo’s customers then still hovered between 30 and 50 years old. It needed to think younger. Or else, Booth thought at the time, “all the buyers will have Zippos in their caskets, like Frank Sinatra.” (The crooner was buried with his trusty silver Zippo in 1998; replicas were handed out at his wake.)
It needed to reach the generation – ages 18 to 24 – who were children when Sinatra died.
To do it the company shifted ad dollars from print to Google AdWords and sponsored music concert series. They churned out lighters with Jack Daniel’s imagery and others inspired by the TV show Sons of Anarchy. (Skull images have proved especially popular.) All told Zippo produced 30,800 unique designs last year – up from 8,900 a decade ago, a 246% increase partly owing to a new Zippo.com feature where you can design your own lighter from scratch.
Zippo has positioned itself as a maker of talismans, lucky charms – or something akin to customized belt buckles. “The Zippo lighter is a thing of taste,” Booth says. “Sometimes it’s used by folks just as a fashion statement.”
That’s also the guiding light Zippo is following in China. When Booth took over, the Chinese business didn’t exhibit so much as a pulse. Now it’s 13% of Zippo’s revenue (60% of sales come from overseas). Zippo first put boots on the ground there in 2012, and today it has a 15-person team in Beijing. It has opened 14 retail stores in China – Zippo’s first plunge into creating its own stores – with another 35 to come by 2015, all riding the idea of Zippo as an all-American lifestyle brand. The stores carry a Zippo-designed clothing line (logos on the interior tags only), with gear resembling J. Crew’s preppy woodsman style. The stores worked well enough for Zippo to open two Las Vegas stores – in the Luxor hotel and Planet Hollywood casino – earlier this year. Zippo has its eye on several more Vegas locations.
Another brand extension: camping products (grills, stoves, LED lanterns). It launched in 2012, and sales were around $3 million last year; Zippo hopes to hit $20 million by 2016. For now those products are partly made in China. Greater sales would make it economically feasible to move those overseas jobs to Bradford (pop. 8,600), where Zippo remains the greatest source of blue-collar jobs, employing around 950 workers. The Blaisdell family remains the town’s greatest patron, even making up the difference at the perennially lossmaking country club.
Not everything Zippo tried caught fire. Booth originally created an ambitious plan to hit $300 million in sales by 2010: “We had the economic downturn. That set us back dramatically in terms of sales.” Zippo also planned to acquire more companies. It largely hasn’t.
Success enough, though, for Duke to dread Booth’s retirement at the end of 2015. A replacement will likely come from within the company. Duke has no plans to step down himself, but he is actively cajoling both his twentysomething sons to take his place. One has already worked at developing new lighter designs while on his college breaks. “This is just a metal box,” Duke says, twirling his Zippo in his hands and drawing deep on a cigarette. But, he says, “there’s a lot you can do with a metal box.”

Sparking Zippo

Every day, African entrepreneurs are faced with the same problem. On the one side we have a financier looking for ventures to invest his money in; on the other we have a business owner unable to push their products at the pace they would like.
It is not that business owners don’t ask for financial assistance and it is not that funders don’t receive proposals; but a fundamental problem exists. You can have two companies that both sell the same electronic gadgets, but money flows to one business and not the other. Often, it come down to packaging.
Entrepreneurs haven’t come to terms with packaging their businesses for far too long. A bank’s main product is money, but why do we choose one over the other? Again, it is the packaging. Our choices are made around the value added services the banks have around their product, such as technological advancements or insurance services.
I have sat in many meetings and listened to investors saying, “we have money, but we just don’t come across the best investment opportunities”. At the same time, they acknowledge there are many entrepreneurs with brilliant products and services. These entrepreneurs have pitched their ideas, only to have them declined. It is likely that their proposal was not correctly packaged.
Legendary venture capitalist, Tom Perkins, knew about the two Steves (Steve Wozniak and Steve Jobs) in the early 1980s, but did not invest in Apple. It was not that the concept lacked substance, it was how the idea was put across.
The South African government established the Small Enterprise Finance Agency (Sefa) in 2012. It has a Youth Fund worth $145.71 million which was supposed to be spent within five years, but two years later, there is still $119.9 million in the fund’s coffers. Less than a quarter of the money, meant to kickstart small businesses, has been spent. Are they struggling to find bankable business cases because the new ventures are not packaged in a way that will attract investment? I suspect so.
This is a matter that needs urgent attention!
A product’s packaging needs style and a unique design. It needs to evoke emotion and needs to appeal to the relevant niche market.
Companies need to package an experience in their products and services. People are emotional beings driven by feelings; often our spending power is propelled by sentiments rather than reason.
In order to connect to a customer, you need to tap into their emotions by creating an experience through your product. At the end of the day, what matters is your unique selling point.
Functionality is a key factor beyond packaging a product. For example, the software inside a tablet matters more than the design. Reviews for this type of product will focus more on functionality than what it looks like.
Although I have emphasized how packaging your business’ products and services will determine the appeal they have on the market, the approach will vary for different companies. It is important to know what your market expects in the segment you operate in; however Henry Ford and Steve Jobs have a different view to this.
“Customers don’t know what they want until you show them,” said Jobs.
“If I asked the people what they want, they would have said a faster horse,” said Ford.
Great entrepreneurs dictate what the market wants and then improve their products as they receive feedback.

YOUR PACKAGE could be worth millions

I missed my flight from Nairobi to Kigali. The airport shuttle should have taken no longer than thirty minutes on a Sunday morning, but Kenya’s First Lady had made plans for a charity marathon in a city that is already notorious for its traffic jams. Two and a half hours later I arrive at check-in.
Fortunately, I am not the only one. Also turning up late are two representatives of the Rwanda Development Board (RDB) &#8211; the Rwandan government entity in charge of business and investment.  I had a meeting scheduled at their offices the next day; now we have an opportunity to discuss doing business in Rwanda over an airport lunch and afternoon tea. “If you bring all your documents I can issue your business license in six hours &#8211; one day at the most,” says Kellen Abatesi, the official responsible for business licenses.
Her colleague, Karim Tushabe, is calling Kigali. Unimpressed by the handling of our flight rescheduling, he senses room for improvement. “It will damage the image of RwandAir and our country,” he says with concern.
At Nairobi airport I get a first taste of Rwanda’s widely praised central business administration. Effectiveness and an eye for detail are high on the list, and this does not go unnoticed. The World Bank ranks Rwanda third on the continent for ease of doing business, following Mauritius and South Africa. Last year, this small country was the best global reformer regarding business regulations. It is one of the safest countries on the continent, with a low level of corruption; worthy benefits for any investor, especially with a stable GDP growth rate of about 8.8 percent.
Arriving in Kigali from busy Nairobi is rather like a spa experience. The city is spread across a number of picturesque green hills; the streets are calm and extremely clean. The RDB has arranged a meeting for me with Remote Partners, a project management firm that assists foreign investors through planning and implementation. It is led by two dynamic young men from the US and Israel. They have seen numerous firms come to Rwanda and do extremely well. “Rwanda has introduced and clinically operated an ecosystem very conducive to investors,” Trevor Green, the CEO of Remote Partners, tells me. “Not just in regard to minimizing investor hurdles, but also looking at institutional credibility. “
Also creating value for industrial firms are Rwanda’s Special Economic Zones. Each area is physically secure and administered by a single body, the RDB. It offers reduced tariffs and infrastructure services, with many plots still available.
Green is of the opinion that investing in Rwanda is, above all, a powerful business strategy: “It makes total sense to invest in Rwanda,” he says. “The ease of doing business here makes it the perfect lab for multinationals moving into Africa. But increasingly, I believe that companies could not opt for a better location for their headquarters or manufacturing. Not only do you have the East African Community with a single market of 150 million people on your doorstep, but investors can use Rwanda as a strategic corridor to Central and West Africa.”
In Green’s opinion, energy, infrastructure, and agriculture are the top investment sectors in Rwanda. The country needs 563 MW of electricity, but only 120 are currently produced. It imports over 50  million eggs every year from Uganda alone, I am told. Estimated ROI in Rwanda? Fifteen to twenty percent.
Philip Lucky, a Senior Information Officer for Investment Promotion and Implementation at the RDB, suggests that investors will do best in telecommunications, the service industry, tourism, agriculture, real estate, mining, and energy &#8211; in that order. He finds it difficult to keep the list short.
As always, Rwandans seem overly ambitious in their endeavor to be at the top. The fact that they are surrounded by regional giants DRC, Tanzania, and Kenya does not intimidate them: “We want to become a food basket in the region,” says Philip Lucky. “Horticulture, tea, coffee, dairy, and maize corn flour do very well, and we have plans to start flower production.”
As for Trevor Green and his colleague from Remote Partners, Rwanda is a long-term choice. And although English was made an official language alongside French, they want to stay ahead of the game and are now learning the local language, Kinyarwanda.
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Harnet Bokrezion is a senior international development consultant, the founder and CEO of Africa Business Jumpstart, and a Partner for Africa at Strategic Business Alliance (SBA).

Tag: Business

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ON THe RIGHT PATH

‘Do Your Research’

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Perils Of the Family Business

Turn On The Charm

Sparking Zippo

YOUR PACKAGE could be worth millions

Calm and clean Rwanda Is Worth every penny