The undefeated Lwando Floyd Molwana got the shock of his boxing career as he tumbled to the ground twice after suffering the double jabs and straight rights from experienced former bantamweight champion Oscar Mashudu Chauke.
At the Johannesburg leg of the Premier Boxing League (PBL), the odds were against the 22-year-old Molwana who had to face Chauke in front of his home crowd at the Black Chain Centre in Soweto. Molwana showed guts but couldn’t stop himself from falling to the canvas in the third and fifth rounds.
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The gallant youngster, however, showed heart to continue fighting throughout the action-packed and entertaining six-round bout, much to Chauke’s frustration.
“It was tough but I had to win this one. I thought he’d be down forever when I knocked him down, but he always stood up to fight back. He annoyed me,” says Chauke after winning the fight on points.
Nevertheless, Chauke broke Molwana’s 10-fight undefeated streak and positioned himself among the top contenders for the winner-take-all prize. He also sent out a fearsome message to his next opponent, former South African junior-featherweight champion Macbute Sinyabi.
The night also saw physical onslaughts between Grant Fourie and Vusumzi Tyatyeka as well as Toto Helebe and Innocent Matengo. Chauke’s clinical performance, however, stood out and he earned himself the head honcho award—the prize given to the fighter of the night—worth $500 (R5,000).
These were just six of the 16 boxers vying for the $100,000 (R1 million) overall prize money at stake. This is on top of the $18,000 (R180,000) sum that each boxer receives for participating in three matches over nine months. These fighters made the cut from a pool of 53 applicants.  This is the elite crop that SA boxing currently offers, but none of them have ever come close to earning fees as substantial as this.
“Today we have a South African boxing champion defending his title in Spain for a mere R75,000. At PBL we have boxers fighting six rounds for R60,000 and one boxer stands a chance of winning a million rand,” claims Dicksy Ngqula, the brains behind the boxing league.
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Ngqula, a former television boxing commentator and businessman, spent five years developing this concept to resuscitate boxing before selling it to Boxing South Africa (BSA) in 2012. He was also inspired by cricket’s Indian Premier League (IPL).
“The PBL is modelled on the IPL. It is the first of its kind in the country and its aim is to resuscitate boxing and bring it back to its former glory,” Ngqula says.
South African boxers usually receive $1,000 (R10,000), or less, for a six-round match. The lack of sponsorship is a constant frustration for boxers. Philip Ndou is a former WBA international featherweight and junior lightweight titleholder and fought the world’s pound-for-pound best fighter, Floyd Mayweather. The cash-strapped Ndou recently accepted a fight with little-known Namibian Pohamba Mandume for $4,500 (R45,000), reduced from $10,000 (R100,000), in September.
“Boxing has challenges these days. I know a lot about the rules and regulations of the game because I have been involved in it for more than 10 years as a television commentator. I grew up with the sport back in the Eastern Cape,” says Ngqula.
He says the PBL had to be born to rekindle boxing. It needed a punch to awaken it from its slumber. In the recent past, boxing had been rated among the top sports in the country and enjoyed weekly television broadcasts.
“Through a strategic analysis of the situation, we diagnosed the problems in the sport. We came up with honest questions that required honest answers. So, I think PBL answers some of the problems, including packaging and promotion,” says Ngqula.
“Boxing is definitely not where it used to be and not where it should be at present… You can have the best seven guys in the same division all gunning for the same title, but unfortunately never get the chance to fight each other. We are denied derbies.”
This is what the PBL is trying to achieve. It wants to give boxers a chance to fight for a title. Ngqula says besides paying boxers, what other dissenting promoters call inflated purses, the league aims to empower boxers and increase their marketability.
“We want to see the money going to the boxers. Our vision is to empower them because they are the most important people in the game. South Africa does not quite get that; we want to entrench it,” he claims.
Ngqula says the bouts were reduced to six rounds to create action-packed matches; like Twenty-20 cricket. A minimum of two female fights has also been endorsed as curtain-raisers.
“We want to recruit new spectators to boxing, hence we involved other entertainment forms such as designers, musical acts and betting, but we have to keep the integrity of the game safe,” he says.
The Eastern Cape gambling board, BSA, a local Sunday newspaper and a national television station are among the legion of partners that the league has amassed since launching in March.
The plan for the future is to export the concept to the rest of the continent and then hopefully to international promoters.
“We will export this idea someday. We think we have come up with a novelty business which can be executed anywhere. This is a legacy project. West African promoters have seen this and they want to come on board,” says Ngqula.
The league organizers are meticulous in seeing all participants adhere to boxing regulations. BSA-commissioned medical doctor, Robert Selepe, was on hand to examine the boxers during a weigh-in session a day before the fight. Ngqula told FORBES AFRICA a boxer who fails to meet the weight requirements will forfeit 30% of their match fee.
PBL spokesman, Brian Ndevu, acknowledges that they have earned supporters as well as dissenters. He says the latter does not worry them.
The league was initially supposed to be run monthly but has since deviated from that plan. An event scheduled for Cape Town was skipped for the Johannesburg leg.
In the Eastern Cape, boxing promoters had threatened to banish the tournament in the province, with promoter Ayanda Matiti preventing his two boxers from participating any further. The Western Cape and Eastern Cape are thought to be where most of the PBL’s dissenters reside.
There is a rumor that other small-time promoters disapprove of the PBL’s huge payments, that they can’t match.
But, Ngqula is optimistic about the future. With BSA’s endorsement, and the continued support of spectators, the league is expected to grow over the next five years.
Whether the league continues with the razzmatazz it started with or becomes the international phenomenon that Ngqula envisages, will go to the scorecards.

Bling Returns To The Ring

It is Wednesday morning and the big man is 20 minutes late for our rendezvous at an upmarket restaurant in Sandton City, Johannesburg. At 1.7 meters tall and 105 kilograms, you can’t miss him as he arrives. This is Chiliboy Ralepelle, one of the hottest properties of the rugby world.
Springbok hooker Ralepelle grins at the FORBES AFRICA crew as I wave, we shake hands as he apologizes for his tardiness.
“Sorry guys, I have miscalculated my time. These days I am a bit slow because of the back injury,” he explains.
Ralepelle inherited the nickname Chiliboy from his great-grandfather, a farm laborer famed for growing chilis. His given name is Mahlatse.
Ralepelle missed two international test matches against Argentina after he injured his back in the gym. The Springboks won 73-13 in the first encounter.
“I would have loved to have been part of that feast,” he says.
It is a sad reality that Ralepelle and half of the South African national team will soon no longer be feasting in Africa, after Japanese, Australian and European clubs lured 22 players abroad.
Among the Springboks that will be missed at home in 2014 are Ralepelle, Zane Kirchner, Bryan Habana, Andries Bekker, Wynand Olivier, JP Pietersen, Heinrich BrÜssow, Meyer Bosman and Mornè Steyn.
All are expected to double, or even triple, their earnings. South Africa’s big spenders, the Stormers and the Blue Bulls, cannot compete.
Most of these players will be claimed by Top 14 clubs in France. According to French newspaper, Le Journal du Dimanche, 30-year-old winger Habana, is the third highest paid player in France, taking $66,000 per month. Habana&#8217;s Toulon teammate Jonny Wilkinson is the highest earner with $74,000, followed by Racing Metro&#8217;s Jonathan Sexton on $68,000.
The 27-year-old Ralepelle will double his earnings in France and Toulouse will also pay for his accommodation and car.
However, it is more than mere money that led Ralepelle to break his decade-long stint with the Blue Bulls to join Toulouse for the next three years.
“Toulouse is one of the most successful clubs in the world. It is a privilege to be part of such a prestigious and unified team. I will be able to improve certain aspects of my game there. I fell in love with Toulouse when I spent time training with the team, and realized that was what I wanted for my rugby career,” says Ralepelle.
In France, Ralepelle, an avid FORBES AFRICA reader, will follow his entrepreneurial spirit. He says that while the rest of his teammates listen to music on flights, he reads the magazine for business inspiration.
“I can’t really say I am the jack of all trades. I am young and I need a feel for everything before deciding what kind of business will be good for me. I am currently involved in mining and construction and I have a few properties,” he says.
With a keen interest in business, Ralepelle naturally has some thoughts on how South African rugby should be run.
“South African rugby is professional, but not as professional as it should be. The clubs are not as successful as overseas clubs. They need to be privatized like our Premier Soccer League. The soccer league has been attracting international players because of its success. I think individual business people can run our rugby better,” he says.
Ralepelle, who is learning French, will be joined at Toulouse by Blue Bulls teammates GurthrÖ Steenkamp and Jano Vermaak, as well as his younger brother Ngoako, who has signed a three-year contract with the club’s academy.
The first black Springbok captain says he won’t lodge with his 19-year-old brother, who played as a flanker for the Blue Bulls academy.
“I advised him to stay with the academy so that he can focus more on his own game and studies.”
Ralepelle dispels the talk that Ngoako rode into Toulouse on the family name. He does not, however, deny having a discussion with Toulouse management about his brother.
“Ngoako went through trials and was successful because the talent scouts liked what they saw. Two to three years there and he could be a Frenchman,” says Ralepelle.
“Politics in rugby in South Africa makes life very tough. It’s not for the faint-hearted. He is not as strong as I am, I won’t allow him to go through the same struggle I had experienced in my career. As the elder brother I wanted the best for him,” he adds.
Across racial lines Ralepelle’s rugby career has been criticized, with some referring to him as a quota player who was only selected for the national team because of his race.
Ralepelle was born in Hazyview, in northern South Africa, was raised by his soccer playing father Peter.
“Before my dad could turn professional, he had an injury as he was preparing for Orlando Pirates trials. As we grew up we all played street soccer with friends. My position was left back,” he says.
Ralepelle fell in love with rugby at Pretoria Boys High and soon realized he was good at it.
“I broke away from the family [soccer] tradition to play rugby, but that was the hardest thing to accept for my parents. My mum thought the sport was very aggressive.”
At 16, Ralepelle started training with the Blue Bulls. At the same age, Ralepelle played at the Under-18 Craven Week in 2002. He was the youngest player in the tournament.
“It was the blessings of the man upstairs and a bit of luck, I got a surprise call to join the Under-18s Craven Week squad, three hookers were injured and I was pulled out of the Under-16 team. My junior rugby was great, free of injuries. It was the most amazing time. I was voted the world rugby junior player of the year when I played for the Baby Boks.”
Four years later, Ralepelle was playing Super Rugby and had earned his Springbok colors. He also captained the Baby Boks to the Under-21 world title that season.
Under World Cup-winning coach Jake White, Ralepelle became the youngest Springbok to play against the World XV in 2008.
A spate of injuries then threatened his career, but he came back strongly in the 2011 Super Rugby competition and earned a place in the World Cup squad.
There is talk that the present national coach, Heyneke Meyer, dislikes Ralepelle. Since Meyer took over, Ralepelle has seen little game time. But Ralepelle would not be drawn on the issue.
“With Heyneke, we have an open book relationship. I understand he can’t please everyone, including me. When I get a chance, I have to play very hard and hope to impress the coach.”
He has much to look forward to.
“My focus and energy is with rugby now, but I have some business interests on the side that I will have to pursue when I am done with the sport. I want to enjoy my rugby at Toulouse and be the best I can be. Keep focussed,” says Ralepelle.
So, the harsh European winter awaits one of the most powerful rugby players Africa has produced. If the going gets tough, at least he has his own flesh and blood, Ngoako, close at hand for a chat.
And who knows, with Chiliboy’s guidance, Ngaoko could be playing for France at the 2019 World Cup.

Why Chiliboy  Is Hotfooting It  To France

In true Japanese hard working fashion, the country has rebuilt rapidly since the earthquake and tsunami of March 2011. The resilience of the people is told in two words: gambaru, to always do one’s best, and gaman, to suffer in silence.
Plan your trip to the Japanese archipelago of 6,852 islands in springtime, during the Sakura cherry blossom festival. It’s part of the Hanami tradition, a celebration of the flowers, that started in the 8th century. The idea is to spend a day picnicking beneath petal showers.
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Nara, nearly 40 kilometers south of Kyoto, has 30,000 cherry trees. The former capital is home to eight UNESCO World Heritage sites, vying for your attention: from the 16-meter bronze Buddha in Todai-ji temple to the five-story pagoda at Kofukuji Buddhist Temple. Don’t leave until you’ve visited Kasuga-taisha. The vermillion, wooden, Shinto shrine is located in Nara park, where more than 1,200 deer—the sacred messengers of the shrine’s Shinto gods—roam. Three thousand stone and bronze lanterns are illuminated during the Man-toro lantern festival, which is celebrated in early February.
Kyoto should be at the top of your list if you’re looking for a cultural experience. The city is synonymous with Kinkaku-ji; the zen Buddhist temple also known as the Golden Pavilion. The two top stories are covered in gold leaf. The pavilion ‘floats’ on a pond with 10 small islands. Be sure to take a walk around the splendid garden.
A short stroll away, at the Temple of the Dragon at Peace, is the most-celebrated rock garden in Japan. This life-size version of the zen gardens we have in our homes, contains 15 rocks, surrounded by white gravel that is raked daily by monks. While there are many theories about the meaning of the garden, in essence, its intention is to evoke peace.
At sundown, wander the quieter alleyways of the Gion district; you might see a Geisha. Have dinner at one of the many restaurants along the banks of the Kamogawa River, or unwind at a teahouse.
Nearby Osaka is great for a half-day trip, especially if you’re a follower of popular culture. Visit the Dotombori entertainment district, or the southern districts, for a taste of Japan’s nightlife. If it’s electronic goods you’re after Den-Den Town is the place to go. In the Kita area, take a glass tunnel escalator to the top of Umeda Sky Building, with its twin towers. But Osaka’s most popular attraction remains the 16th century Osaka-jo castle with its memorabilia museum.
Hiroshima is a real-life history lesson; there’s no need for a textbook. The city, and all its monuments, are a grave reminder of the atomic bomb dropped by the Americans on August 6, 1945.
If you’re visiting Japan for a week, or longer, buy a discounted Japan rail pass for the Shinkansen bullet train and travel as far as you can. A day trip to Mount Fuji, en route to Tokyo, is well worth it since it’s only 100km south west. The active volcano, which stands at 3,776 meters, hasn’t erupted since 1708. At the foot of the mountain lie five lakes and Fuji-Hakone-Izu National Park.
Once you arrive, you’ll agree that Tokyo is everything you’ve heard about it, and so much more. The multiple subway and train lines that intersect and circle the capital are a worthwhile way to get around. Visit Shinjuku station: the busiest transport hub, according to the Guinness World Records.
Nearby, in Harajuku, you’ll find Takeshita Street. This is where the fashion-conscious youth spend their time, wandering between boutique stores, photo booths and fast food outlets. You’re almost guaranteed to see teenagers engaging in cosplay (costume play). They dress as anime characters, something out of a Halloween movie or in modern Victorian dress.
If you’re a shopaholic, Ginza Street will keep you busy for hours on end or, at least, until your credit card is cut. The Gingko tree-lined street is home to designer and department stores. Rest at a corner cafe or find respite in one of the many art galleries and museums along the stretch.
For sushi, like you’ve never tasted, head to Tsukiji fish market—the world’s largest wholesaler. Be prepared to stand in queues outside the best restaurants, many of which have been featured on Japanese reality TV. It was here that I tried sea urchin for the first time; the delicacy is expensive due to its delicate texture.
As dusk draws near, head up the Tokyo Metropolitan Government Building. Entrance is free and the panoramic cityscape views, from 200 meters up, are priceless.
While in Japan, I read Haruki Murakami—now my favorite Japanese postmodern author—in the hopes of understanding Japanese way of life. There are some things Murakami won’t tell you, like how to make a peace sign with your index and middle finger, when taking photographs, to gain respect from the Japanese.
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The best place to start: www. japantravelinfo.com

Japan Rising

The global fashion industry is reputedly worth $450 billion dollars per year and Nigerian-born Angela Udemba wants a piece of it. This is why she gave up what promised to be a glittering career as a scientist in cancer research.
The 26-year-old is launching Fashion Strikes, a London based fashion-tech and events business start-up. Within three years, she believes her company will turn over $5 million.
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“Investors ask for your projections, I say five million revenue, and they don’t believe me. But that’s what I believe the business is easily capable of,” she says.
Fashion-tech is an emerging and potentially lucrative fashion industry sweet spot. Online businesses are delivering diverse services; everything from matching your personal taste in clothes, via your social graph, to literally mapping your body to fit custom-made items.
“Given the size of the fashion industry and the thousands of retail brands out there and emerging still, there is a hell of a lot more money to be made.”
Of the young online fashion businesses, the determined Udemba thinks the Lyst.com business model has been the biggest influence.
“Lyst is Twitter for fashion, and you can follow designers and fashion influencers. Unlike other sites, it also allows you to buy all the products you see—so called affiliation sales. Lyst are reported to make $1 million in affiliation sales per month in less than three years. If true then that is indeed very impressive.”
The Fashion Strikes website calls itself “a unique fashion social platform built with emerging designers, fashion fans, bloggers, models and creatives in mind”. The focus, it says, is firmly on new designers, creating a space to foster collaboration and help them smash through the industry’s closed doors.
Udemba’s key differentiator is that she can guarantee those designers access to catwalk exposure. Live fashion and dance extravaganzas are planned for London and Abu Dhabi—with a Lagos show to be announced. The events are intended to build a buzzy, hip, ahead of the curve online community. It hopes to capture the old money of Europe and new money of Africa.
Despite all this blue-sky thinking, investors aren’t so keen on the start-up’s ambitious plans. Udemba has yet to complete her first funding round.
“Investors hear ‘fashion’ and they instantly go deaf,” she explains.
“They have never heard of a digital business linked with annual global events, and we don’t fit the mold. For now I’d rather be self-funded than sell out to investors, holding 51% of the business, who don’t understand the spirit of what we are trying to achieve.”
Investors may see the fashion events as an unnecessary diversification—but Udemba sees them as a core.
“The budget for the London production is £100,000 ($156,000), the production in Nigeria is easily at least five times that. We aim to charge one million naira ($6,145) for a VIP ticket and hundreds of thousands for standard tickets is the norm in Nigeria. We will be putting on an entirely unique, high-quality production before an audience of thousands, and you can begin to see how the event side of the business acts as the cash cow with revenues invested into the social media platform.”
The journey from high-flying medical scientist to fashion entrepreneur may seem an unlikely one to everyone but her. Udemba has already enjoyed a good academic career, earning a first class degree with distinction in chemistry from York University in Toronto, and is about to complete a four year PhD sponsored by Cancer Research UK, at Imperial College, London.
Writing up her thesis and simultaneously starting up a business with a global dimension is exactly the challenge she thrives on.
“I’m very driven. I go above and beyond to do my absolute best in everything. I just get up very, very early to write the thesis, which is great fun. It’s worked so far, so we shall see with this business.”
“Ever since I went to my all-girl convent school, Gumley House, in West London, I loved science and found it easy. But I also loved music, dance and the arts, even though I found it harder. At university I got hugely involved with putting on shows, and Fashion Strikes is a natural extension of my love for fashion, dance and live events.”
So how Nigerian does Udemba feel?
“I would say I’m British Nigerian. I left Nigeria when I was 13 and my mannerisms can be defined by Nigerians as very British,” she says.
“I recently went back and loved it. You hear stories about Lagos, so I was quite apprehensive. I landed at night and the very next morning I was at WOWe (Women of West Africa Entrepreneurship Conference). I got to meet so many successful women making a difference in Africa—it was absolutely inspirational. That’s what’s so amazing about Nigeria, everyone is so entrepreneurial and no one does just one thing.”
It’s been quite a journey from Lagos to London and from cancer research to cutting edge digital fashion. Now, like every entrepreneur, however good the idea, what Udemba needs is to meet the right investor.

The Scientist Turned Fashionista With  $5 million In Her Sights

Brand Pretorius attracts awards, nominations and accolades, similar to Kelly Slater collecting world surfing titles and Valentino Rossi world MotoGP championships.
The latest in a long list of awards was an honorary doctor’s degree in marketing, bestowed on him by the Durban University of Technology in April.
This former sales manager of Toyota South Africa, executive chairman of McCarthy Motor Holdings and executive director of the Bidvest Group, became the first member of the South African automotive industry to be inducted into their hall of fame in 2006.
He was also recognized as the most trusted leader in the country’s motor industry in the annual Trust Barometer opinion survey in 2009.
Pretorius’ love affair with cars started when his father brought a new Chevrolet 1956 home when he was a toddler. When his mother got her first car—a 1959 Renault Dauphine—that love affair became an obsession.
Pretorius is well qualified to speak on South Africa’s position as the undisputed ‘wheels’ leader of Africa.
“There are 1.7 million new vehicles sold on the continent per year, and South Africa accounts for 650,000 annually. There is a correlation between the gross domestic product per capita and the vehicle market.
“Obviously, from that point of view, South Africa is standing tall in Africa,” claims Pretorius.
“We have a vibrant manufacturing industry that makes us unique. Only two other African countries, Egypt and Morocco, manufacture a meaningful quantity of vehicles.
“Importing used vehicles is not allowed in South Africa, whereas in other countries it is.
“Used vehicles from Japan and Singapore are flooding the markets and are undermining the viability of manufacturing because the ratio between used and new vehicles could be as high as seven to one,” says Pretorius.
The automotive industry is one of South Africa’s most important sectors, contributing more than 6% to gross domestic product and accounting for more than 12% of manufacturing exports.
Pretorius says this favorable status quo is because the country weathered the global recession well.
The increase in disposable income as well as the explosive growth in black purchasing power has benefited the automotive industry.
The launch of the Motor Industry Development Program (MIDP) led to the dramatic acceleration of exports from an insignificant amount in 1995. More than 350,000 vehicles are expected to be exported in 2013.
“Another positive factor is that major global vehicle manufacturers have made the South African subsidiaries an integral part of their global supply chain,” he added.
Pretorius is widely hailed for his exemplary business leadership.
Probed about his style, he tells FORBES AFRICA: “The major benefit of servant leadership is that through serving, one engages people’s hearts and if you engage their hearts, you get a higher level of engagement, trust and willingness to work together.
“When Nelson Mandela was inaugurated in 1994, he said that he was not here to lead, but to serve.
“South Africans responded to that. They volunteered their goodwill, they joined hands and we saw a high level of commitment to a better future.
Pretorius said he is proud of the constructive and responsible way in which local business leadership is approaching its role of building a better future for all.
“In my opinion, we are setting an excellent example for the rest of the world. However, there is still so much more we can do.”

The Mandela Brand

It is 1:30PM in Winterveld, north west of Pretoria. Arbitrarily, winter has given way to summer in June and laid a lavish ceremony of color in the sky. Just what climate activists need to spark a global warming debate.
Sam Motsuenyane lives here, in a community where everyone seems to fit in well. Winterveld is not a community built on the strength of one character. If you can get off the divan of your middle class comfort of a Houghton or a Sandton community, it is possible to fit in.
In his house, Motsuenyane’s presence transfixes and dominates the room. Like a bishop about to dispense his sacramental powers, a magnificent cane twirling gently in his hand—he is able to put you at ease. His patented seTswana inflection certainly enriches his guests. The house is consistent with his personality—simple, smart, immaculate and sparse with some classic utilitarian furniture. A statement if any, that says he was not in the struggle against apartheid for monetary recompense.
On the corner next to the sitting room door is a black leather recliner sofa, donated to him by New African Investment Limited (NAIL), former owners of the Sowetan newspaper and former part owners of Sunday World newspaper with 50% shares. The seat came with the friendly instruction that he must use it.
“Now that you are here I should make use of it,” he chuckles.
Motsuenyane still works, at the age of 87, on his small citrus farm in his yard. He checks the books, gives advice and attends to the farming project with body, soul and mind. He is viscerally attached to the people.
“Yes, you are right,” he says when asked if he was the founding chairman of the African Bank.
“I have been the chairman for 20 years. But prior to its establishment, as president of the National African Chamber of Commerce and Industry (NAFCOC), I pioneered the bank’s establishment.”
For a period of 10 years he had to raise capital from black people who did not have money.
“We eventually raised the necessary $100,000 (R1 million),” he says.
The background of the bank is a narrative arc of agony and ecstasy.
The idea of the African Bank was discussed at great length at the inaugural conference of NAFCOC in 1964.
“This conference was called with a view to uniting black business people throughout the country, who at that time had small business organizations in various places but then did not have unified movement to speak to government with one voice.”
“We had laws at that time that were oppressive and we felt the need to come together and talk about those laws and how to work against them.”
The Johannesburg African Chambers of Commerce took the initiative to call all the small business organizations throughout the country. At that time the chamber was headed by Richard Maponya. It took the decision to bring together all of the various small businesses to the conference where they could discuss issues relating to their development.
The conference was a success but their biggest stumbling block was the lack of access to funding.
“We could not get sufficient support from the banks at that time.”
Encouraged by black people running their own banks in the United States, NAFCOC asked themselves why black people couldn’t start their own bank in South Africa.
“White banks were reluctant to fund us.”
That strengthened their resolve to form their own bank.
“A voluntary donation was made. We just took money out of our pockets and said let’s see how serious we are. And an amount of $7 (R70) was collected from the members and this money was banked under the name The National Fund,” he says.
An idea to get $0,1 (R1) from each of the 18 million black people in the country was proposed. The people, however, were filled with doubt and suspicion.
One of the things that helped dispel their doubt was when Motsuenyane  went to London in 1972 with a group of business people.
Motsuenyane requested a meeting with Anthony Keith, then chairman of Barclays bank.
“We discussed how they could  assist us in setting up the African Bank.”
In order to set up the bank, they needed to train their employees, build trust and build capital.
Barclays helped organize training and then invested in the bank.
People back in South Africa were encouraged by the support shown by Barclays.
“After that we saw enthusiasm on the part of the people. They contributed money and between 1972 and 1974 we raised the outstanding amount.”
“The African Bank encountered problems towards the end of Motsuenyane’s term.
“This related to raising sufficient equity, basically people buying shares. The bank’s development was based on limited capital from people who did not have sufficient resources. Our shares started on $10 (R100) and so on. As the bank grows, according to the requirements of the banking law, when you take money from people or deposits, you must also increase your capital.”
“Ultimately the Reserve Bank had to impose the legal requirements which said we must find somebody with big money to invest in the bank,” he says.
Unable to raise capital overseas, eventually African Bank was able to raise $10 million (R100 million) from the Natal Building Society (NBS) and NAIL.
“We increased the equity and when that happened at the time the control of the bank moved into the hands of those who had contributed more money. Control moved out of the hands of the NAFCOC members who were small equity holders to those who had put more money into the bank,” he says.
Motsuenyane had to step down as chairman as control went more and more into the hands of white capitalists.
“They believed that the African Bank had potential. They did not even change its name. They built on our foundations but then changed the character of the bank,” he says bitterly.
“We had built the bank as a savings and loan company. This was to encourage people to save and at the same time give loans to people. But these guys  removed the savings aspect and retained the lending aspect. Today the bank is a lending organization and that was not in line with our original planning.”
Just when it was time to wrap up, he remembers another point.
“A certain group of white guys from Finansies Bank came to the board and said that we are required to have a foreign exchange arm of the bank.”
African Bank CEO, Moses Maubane  spoke to them about the offer by Finansies Bank.
“They wanted to set up a foreign exchange arm of the bank in order to attract foreign investors. We trusted that our CEO would monitor the activities of these people,” he says.
“Before long he gave the board a report that these people were keeping a certain commission and that they paid themselves lots of money.”
“We asked him to investigate how they managed to make money using our bank but they co-opted him and he became the shareholder in that arm. He did not disclose this to the bank. Before long we found that these men had violated foreign exchange regulations to the extent that the bank was stopped from operating.”
“At that time I became accused No.1 on behalf of the bank,” he says.
Motsuenyane was absolved of any blame but the guys from Finansies Bank were sentenced to seven years each.
He turns to look at his watch. It’s 2:45PM. “I think I have given you the story.”

The African Banker

Mo Ibrahim is rich, relaxed and a lot of fun. He sees humor in the leadership of Africa as he delivers his Nelson Mandela lecture. He compares Robert Mugabe to Bill Clinton and Barack Obama who both ran the world’s biggest economy in their 40s.
“Here we have somebody in our neighboring country, who, at 90 years old, is about to start a new term. So what is wrong with us? And the other day I was thinking, ‘If Obama senior decided to take the young Obama back to Kenya, where would the young Obama be today?’ You may guess, I know, he will never be president of Kenya,” says Ibrahim to laughter from the audience in Pretoria.
Ibrahim knows Africa like the back of his hand. He was born in Sudan in 1946, the second child in a family of five. He went to school and university in Alexandria, Egypt, where his father worked as a cotton trader. After university, Ibrahim went to work for the telecommunications department in Sudan. Following training and assignments abroad, he completed his Masters and Doctorate at the University of Birmingham, in England.
It led to an opportunity to get in on the ground floor of world telecommunications. Ibrahim joined British Telecom (BT) as a technical director when it won the first license for cellular technology. He designed the first mobile network in the United Kingdom.
Ibrahim left BT to start Mobile Systems International (MSI) and founded Celtel International, one of the first mobile phone networks in Africa, in 1998. At the time, people were scrambling for licenses everywhere but Africa. The general consensus was that Africa was too difficult.
“Wherever there is a gap between perception and reality, there’s a good business opportunity,” says Ibrahim.
He sold MSI in 2000. Celtel was sold in 2005 to MTC Kuwait for $3.4 billion, making him a reported $1.4 billion. At the time, the company had six million subscribers in 13 countries.
Ibrahim hails mobile technology as an African success story, but cautions that despite the continent having more mobile phones than Europe and the United States, it makes none of them. He says African nations should sign contracts with mobile companies forcing them to set up factories here and then transfer the skills.
The leadership that could bring this about has been honored with millions of dollars by the Ibrahim Foundation, launched in October 2006, to support good governance and great leadership in Africa. The foundation publishes an annual index on the quality of governance.
The Ibrahim Prize—of $5 million-a-year for 10 years—has been awarded a mere three times and goes only to former heads of state. In 2007, it went to former president of Mozambique Joachim Chissano; in 2008, Festus Mogae of Botswana; in 2011, Pedro Pires of Cape Verde.
Ibrahim says that it’s a prize for excellence that doesn’t come easy. He adds it is a prize and not a pension. Many do not agree with the idea, but Ibrahim challenges people to name three western leaders who could have won it in the last six years.
On the business front, Ibrahim is trying to channel investment through Satya Capital, of which he is chairman.
“Business is wonderful because business means prosperity, development and jobs,” says Ibrahim.
Good business that is. Ibrahim is disturbed by fellow African businessmen whom he believes are detached from society. A closer interaction is essential because, he says, business cannot succeed if society doesn’t thrive. He also thinks that the business world is too scared to rock the boat and hold government to account, forcing transparency and good governance.
Ibrahim is a proponent of integration. He feels that achieving a central market for Africa is essential, that the continent has yet to achieve this because of a lack of political will. According to Ibrahim, an African business plan must begin with integration and that Africa needs scale that allows the development of industries to compete with India, China, Brazil, the European Union and the United States.
“We cannot really build 54 successful small economies in Africa, it’s out of the question,” says Ibrahim.
“Only 11% of our trade is amongst Africans. We refuse to let our people travel from one country to another.”
Ibrahim says Africa needs infrastructure, roads and railways, power generation and broadband.
“Africa will not develop just by accident, people need to work and see what needs to be done and work together,” he says.
Then, there is youthunemployment.
“If you are a young African person, the more educated you are the more likely you are not to get a job. Our education system is not providing the skills for the job market. We need to rethink how our schools teach,” says Ibrahim in a speech to the Economic and Social Council (ECOSOC), an organ of the United Nations.
“The future is theirs [the youth], they have a better understanding of the future than us. This continent belongs to its young people,” says Ibrahim.
Delivering the 11th Nelson Mandela Annual Lecture, Ibrahim posed a question whether young Africa can become the factory of the world when China has no youngsters to work in theirs, in 10 to 20 years time, because of the aging population.
What about the notion that China is taking over Africa? Ibrahim sees this as a healthy business relationship as long there is technological transfer, local sourcing of components, transparency, and respect for the environment and communities.
“Why are Africans poor when we have a rich continent?”
More money is lost from multinationals not paying tax, through what he calls ‘fancy accounting’, than gained from aid. He calls for a strengthening of tax institutions. Although the west has woken up to tax dodging, Africa slumbers.
Governance, according to Ibrahim, is about making difficult decisions and being judged on the numbers.
“Physics and numbers don’t lie, but people do,” he says.
Ibrahim says there is a dearth of leadership in Africa; that leadership is not about bossing people around, having a seat on the Security Council, or chairing the AU. It’s about engaging with others.
He says that the continent holds South Africa up as a role model, but that the country has become too arrogant and refuses to learn from other countries.
When the BEE policy was introduced in South Africa, Ibrahim asked his friends in the ruling party if this was not a slippery slope to corruption. He says that the policy has done nothing to keep South Africa from being at the bottom of the Gini Index scorecard, making it the most inequitable country in the world. He says there should be no “sacred cows”, including land reform. If something doesn’t work then policy makers should revisit it.
The 2013 Ibrahim Forum will be held in Addis Ababa, Ethiopia, in November and will discuss where the continent is going after 50 years of the African Union. It will focus on achievements and those that got away.
Ibrahim doesn’t know where he gets his sense of purpose from, but he simply sees things that need to be done and does them. In the end, Ibrahim just wants to be remembered as a son of Africa that made it in the west and never forgot his people.

The World According To Mo And  Why An ObamaWill Never Lead Kenya

Few people are as keen to bridge Africa’s digital divide and connect the continent to the global information infrastructure as Funke Opeke.
As an engineer, entrepreneur, mother, mentor and founder of Main Street Technologies and CEO of MainOne Cable Company, a trailblazing telecoms infrastructure provider out of Africa’s most populous economy, she is helping to attract more females into the “meritocracy” of  science and mathematics and deepening the strategic alliances between the business, computing technology and telecommunications landscape.
Once described by a telecoms industry buff as a “brilliant mind; and a nice, easy going, friendly geek”, FORBES AFRICA also found her to be a witty, diligent executive with a canny flair for corporate diplomatese. She was also once worth millions of dollars on paper… but that’s a story for another day.
Opeke excelled in mathematics and physics at school but loathed biology. Her father’s career choice for her was medicine. She however had other ideas, enrolling for undergraduate and graduate-level degrees in electrical engineering at Nigeria’s University of Ife in Ile-Ife, now Obafemi Awolowo University, and Columbia University in the United States. She spent the next two decades in North America gaining invaluable international engineering and management experience, and during that time she noticed that the poor statistics of females in engineering did not significantly improve.
“I was the only female in my class at Ife,” she says. Social profiling is partly to blame for this. Engineering in Nigeria, and even in a matured market economy like the United States is still somewhat riddled with gender stereotypes.
“Even in computing today, you still hear things like ‘whilst guys write code, women can only check or test code,” she says.
While engineering might be struggling to attract more female talent, Nigerians have had no qualms embracing digital mobile technology. The country had about 450,000 functional telephone lines for a population of about 140 million people as at December 2001. By December 2012, it had 113 million active subscriber lines, according to the Nigerian Communications Commission (NCC), the industry regulator.
Nigeria’s cellular transformation began with telecoms industry reforms that culminated in the 2002 auctions of GSM licenses for $285 million each to Econet Wireless in Zimbabwe, South Africa’s MTN and Nigerian-owned CIL. All the new operators had grossly underestimated their market projections for Nigeria. As the country gradually became one of the fastest growing telecoms markets in the world, Nigerians flocked home in droves, especially professionals in computing, engineering and telecoms law, whose skills were in short supply.
In 2005, Opeke quit her job as executive director of Verizon Communications Wholesale Division in the USA to take up a role as chief technology officer of MTN Nigeria. The MTN experience lasted only a few months. She moved on to help with the resuscitation and privatization of state-owned Nitel (Nigerian Telecommunications), acting for a while as chief operating officer of the still moribund entity. With entrenched institutional graft and high-wired politics, it became obvious that Nitel was a complicated case; and barely two years after upending her career and cozy life in the States, Opeke was jobless, unfulfilled and in search of new meaning for her life in Lagos.
This turbulent landing into the deep waters of Nigerian telecommunications helped Opeke identify salient opportunities in the sector, especially the need to upgrade West Africa’s internet infrastructure. It also prepared her adequately for the rough and tumble realities of doing business in Africa. She could see an opportunity: everyone was tilling the retail space, but Nigeria lacked robust connectivity at the enterprise level. She galvanized private and institutional investors, and established Main Street Technologies, a telecoms infrastructure provider, which gave birth to MainOne. No mean feat for someone who was barely three years old in town.
“After almost 25 years in the US, I saw an absence of telecoms infrastructure for business. I found it fascinating that we were running our ATMs on GPRS networks, and based on my experience, no country ran its business on mobile networks. The mobile network infrastructure is not robust and resilient enough, even though technology is developing to allow us to push data around more efficiently, I still don’t know serious stock exchanges functions or defense applications that run purely on mobile infrastructure…that was one of my key motivations for joining Nitel.”
“Because a lot of African countries never had well established telecommunications infrastructure, we were able to start with mobile and create a veneer of infrastructure but that underlying, unifying infrastructure, that enables different companies new services to plug in to, does not exist,” she argues.
A decade after the GSM auctions, and despite multi-million dollar investments in the sector, cellular teledensity has clearly improved. But decades of underinvestment meant a lack of bandwidth capacity for international traffic, a decrepit nationwide backbone and total disregard of the all important ‘last mile’ infrastructure, which is the bedrock of municipal and metropolitan access to data and voice-based communications services. She therefore disagrees with the view that Africa is awash with bandwidth, notwithstanding the plethora of fiber optic cables between Africa and Western Europe.
“The real challenge is getting the capacity to the people who require it. We are leapfrogging in some services but we are not necessarily deepening the infrastructure. We are dealing with situations now where some of the landlocked countries have so much difficulty getting access to the internet because they do not have the infrastructure, but they have mobiles for phone calls. No backbone, no last mile, only mobile, and mobile voice.”
To plug this gap, MainOne Cable Company is investing in its own terrestrial infrastructure in Nigeria. This pan-Nigeria link will enable ‘efficient, more affordable’ connectivity inland, and assist the hook up to the company’s coastal fiber optic link. MainOne currently employees 250 people; its initial capitalization of $250 million was for its trans-Atlantic submarine cable, which was completed in 2010. With clients in Burkina Faso, Togo, Benin, Ghana and Nigeria, the company is looking to expand its services to Senegal, Cote d’Ivoire and Cameroon. Opeke reckons the current worth of the business is about $500 million. The firm continues to reinvest extant revenues into the business and will open its new data center in 2014, a strategic milestone development for the company and tactical response to customer needs for hosting and outsourcing services.
“The new baby when fully deployed will cost us between $40 and $50 million,” Opeke says.
MainOne’s large institutional customers wanted more than reliable connectivity from the company.
“As connectivity improves and becomes the norm, companies will migrate to outsourced facilities. Private cloud computing infrastructure as a service will grow. Our data centre will provide co-location spaces and handle disaster recovery activities, and we believe this is the first of its kind in this environment, indeed in West Africa.”
The fact that MainOne will be competing for a share of the corporate services market with established operators like MTN, Airtel, Glo and Etisalat, Vodacom, across Africa does not bother the bandwidth queen.
“Our focus is our key asset. We operate at the high-end of the market where customers expect 100% reliability. We’ll continue to invest in world class infrastructure. We will continue to grow because we provide a high degree of quality and accountability that is not typical of service providers in this region,” Opeke says.

The Bandwidth Queen

The fallout of the Arab Spring brought its fair share of highs and lows, and while Egypt and Tunisia have had to grapple with some very worrying challenges, perhaps no country has embodied the elation and the trepidation of the new political landscape as Libya.
The political upheaval of the Arab Spring complicated the region’s economy. Economic grievances were a significant factor in the uprisings, but the resulting instability drove away foreign capital, dragged down output and spurred a rise in unemployment. However, Libya, nearly three years into the post-Gaddafi era, has seen some encouraging progress made in terms of restarting the economy and fostering a broader and more inclusive base for growth, but continuing unrest and the stubborn problem of armed militias continues to limit gains. There is no doubt that the country offers significant potential for investors, but the question remains: at what cost?
On the face of things, Libya ought to face the most grueling uphill struggle to restart its economy, given its prolonged conflict and the historical lack of any centralized governance structure. However, with proven oil reserves of 48 billion barrels, making up for around 3.5% of the global total, and a relatively small population of 6.5 million, the country has a wide range of policy options at its disposal to restart long-term sustainable growth—far more so than Tunisia or Egypt.
This is due in large part to the country’s natural largess. In 2012, oil accounted for 78% of GDP, 98% of exports, and 95% of all fiscal revenue. Oil exports also foot the bill for a vast system of regressive subsidies, which for electricity and fuel can be anywhere between 11% and 14% of GDP annually. With production averaging 1.5 million barrels per day (bpd) in the first half of 2013—up from a low of 30,000 bpd in 2011 and just short of the pre-revolution levels—revenues are also funding the country’s large public sector wage bill, which is estimated to cost roughly one-fifth of GDP but is a necessity, given the urgent need to expand employment and reduce the country’s poverty rate of almost 33%.
While the country’s resources give it a comfortable tool to jump-start growth and minimize short-term unrest, Libya’s broader performance over the past 18 months has also been comparatively strong. In July 2012, the country went through relatively peaceful general elections and by early 2013, headline indicators were impressively robust. The country saw real GDP growth of 95.5% in 2012, although this figure was distorted by the economy’s contraction of 60% in 2011. Nonetheless, the IMF is projecting 17% growth for 2013—the highest on the African continent—followed by more stable growth rates of 7% set to take place until 2017.
The strong growth has managed to recoup some of the capital that was withdrawn during the height of the country’s conflict. Outflows in 2011 were unsurprisingly significant. Most companies shut down operations completely and in some cases evacuated staff in a frenetic rush. The drop was all the more noticeable given the country’s star status in the preceding years. The end of United Nations sanctions in 2006 brought about an impressive growth in foreign direct investment into the country, in spite of caps on ownership requirements and the outsized-role of the state in directing activity. While post-Gaddafi Libya still grapples with a cumbersome bureaucracy and a burdensome regulatory framework for new investments, some of the less risk-averse companies have started to move in.
Oil is obviously one of the ripest attractions for foreign investors, particularly since Libya’s government is planning outlays of $10 billion over the next few years to boost overall production to 2.2 million bpd. Firms have been quick to move back in and the government moved quickly following the end of fighting to reaffirm the validity of existing contracts. Some companies—like Italy’s ENI, who holds signifcant stakes in the upstream sector—even resumed activity as early as mid-2011, although given the burdensome requirements of the previous regulatory code and the lacklustre rate of discovery, there are expectations that terms of some exisitng contracts may be renegotiated.
Foreign capital is also coming into the country’s long under-developed tertiary sector. While the state-dominated banking industry has nonetheless been grappling with a post-conflict jump in NPLs and decline in asset quality—and more worryingly, legislation in January 2013 that banned interest on all transactions in the country—there is abundant liquidity and no shortage of possible clients, which has attracted investors like Qatar National Bank, who acquired a 49% stake in Libya’s Bank of Commerce and Development.
Finally, infrastructure—which was a major recipient of foreign investment under the previous regime—is an area that offers enormous potential due to the volume of work needed. There is a need for capital in everything from sanitation to transportation to electrical transmission, and even property—particularly residential and commercial. There is less than 100,000 square meters of gross leasable area for grade A commercial property in Tripoli, a figure expected to grow tenfold over the medium-term. The new investment commitments and strong headline indicators represent the country’s highs but there are still plenty of lows that it must grapple with, both in the short- and long-term. The past 18 months have seen some notable and encouraging advancements, but a rosy outlook is far from assured.
One of the greatest challenges has been maintaning security and overall stability. The country’s loosely-organized militias were central to Gadaffi’s ouster, but controlling them after the revolution has proved to be problematic. Some of the larger militias in both Tripoli and Benghazi have resorted to kidnapping and extortion, in part to help pay wages, while armed groups have also used explicit threats and displays of force to pressure the government into passing favorable legislation, such as a ban on former government employees holding public office. Targeted attacks on diplomatic and government buildings in 2013 have also led to foreign embassies and corporations evacuating their staff again.
Recent months have also seen a troubling eruption of broader civil unrest, including strikes by workers, street protests and militia groups, primarily over insufficient and inadequate political representation or economic exclusion.
In August, a number of refineries, ports and pipelines were forced to shut down as a result of workers downing tools and militia blockades. Offloading and receiving capacity was already hurt by the damages incurred to key ports during the 2011 fighting, and given the heavy reliance on both imports—which account for 75% of food staples—and export earnings, recent port stoppages are weakening the overall economy further.
The lost earnings could amount to $4 billion a month and the damage in terms of output and attracting capital is a concern and could have longer-term implications. Concerns over supply reliability may force the country to discount its oil price in future contract negotiations, and some operators, like the United States-based Marathon Oil recently announced that they are exploring a potential sale of their stake in a local consortium.
Libya currently finds itself at a critical juncture and how things play out over the coming months will have a significant impact on the country’s long-term prospects. Libya has the ability to emerge from the fallout of the Arab Spring in far better shape than either of its neighbors, but with the stubborn problem of militia violence and continuing unrest, it looks like a challenging task.

A New Dawn Of Uncertainty

When Michael Wood came to South Africa nearly a decade ago, it was to run the Gillette Company’s southern African business, after a 10 year stint in Russia. Gillette was eventually bought out by Proctor &amp; Gamble (P&amp;G). In 2009, Wood and two marketing directors left P&amp;G to start Aperio, a fast-moveable consumer goods (FMCG) focused business consulting company that helps companies find opportunities and develop businesses in Africa.
“Africa, from an outsider’s point of view can look a little bit scary because there are a lot of countries, a lot of complexities, obviously there are a few horror stories in there,” says Wood
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But, he feels that the continent, in some cases, is a lot easier to do business in than Russia, China and India when they first opened up.
Risk factors that may leave companies uncertain can be eased through partnering with established local businesses who know the market. Favorable FDI policies, like tax breaks, also make things easier. Effective trade blocs are another consideration for manufacturers.
African nations are far from the top of the list when the World Bank and International Finance Corporation ranked the ease of doing business in countries. South Africa is the highest African country at 39. Behind it are Rwanda, Botswana, Ghana, Namibia, Zambia and Morocco—placed between 52 and 97.
“If FMCG companies have the ambition for growth, the appetite for some risk and can get some expert help to define and develop their African business; the opportunities can be endless,” says Wood.
Investors beware! A one-size-fits-all approach will not work in Africa. The brand must relate to each specific market, and with 55 countries and thousands of languages, Africa cannot be mistaken for a single market. You’ve also got to make sure of what sells in each country. In Nigeria, for instance, the sachet format works better—be it powdered milk, washing powder or alcohol. This is simply for affordability purposes, not to be mistaken with being cheap. FORBES AFRICA can be bought while sitting in Nigeria’s notorious traffic, a testament to the fact that the country is big on “on-the-go consumption”.
“It’s [Nigeria] not an easy place to operate in and it’s quite complex, but if you get it right… you can build a very successful business,” says Wood.
Those who think that South African markets have come as far as they can, might want to heed Wood’s advice that, although there is generally more potential in other markets in Africa, the country still has a big enough emerging market—with a reported 67% of the population being lower income consumers.
According to a Unilever report, South Africa’s black middle class has grown from 1.7 million people in 2004 to 4.2 million in 2012. Its annual spending is estimated at R400 billion ($38.4 billion). This group is driving retail and vehicle sales, while also seeking affordable housing and education. There’s a view that marketers are not adjusting fast enough to meet the needs of this new market. An October 2012 report by McKinsey &amp; Company says that Africa’s consumer-driven industries will grow by more than $400 billion by 2020.
Spending pattern shifts in South Africa are said to be due to the emerging black middle class, urbanization and an increase in store credit, with the bulk of the country’s spending being on food and drinks.
South Africa’s GDP per capita of $7,750 and consumer expenditure of $4,697 is no comparison to the United States’ (US) at $49,940 and $34,723 respectively, but a growing population coupled with increasing spending capabilities is nothing to laugh at.
Although the US, United Kingdom (UK) and other established markets are large, their growth forecast has many companies turning towards Africa. The continent is gathering spending power. The US and UK’s average spending forecasts are each less than 5% a year, while South Africa’s expenditure growth is expected to increase to more than 10% a year.
Companies that have been on the continent for a long time have the advantage, but are they adapting fast enough?
Unilever has been in Africa for more than a century. The company’s second quarter results show a slowing of growth in the emerging markets—Brazil, Russia, India and China. The company’s underlying revenue rose by 5% year-on-year and developing market sales rose by 10.3%.
“The reality is that today there are very few developing markets left. That’s why Africa is currently generating so much interest as the next BRICS market for many companies,” says Wood.
An Economist Intelligence Unit report says, “A recent survey concluded by the Economist Group of 217 global companies based in 45 countries revealed that expansion in Africa is a priority for two thirds of them within the next decade.”
If the report is to be believed, the largest population growth between 2012 and 2028 will occur in Kampala, Dar es Salaam and Lusaka.
Not only does Africa have the world’s fastest growing population, but it also has the youngest. These youngsters are more brand conscious than their elders. Although brand loyalty and quality are important to African consumers, they are deemed to be highly price sensitive—depending on the country. Trust in a brand goes a long way, even if it means paying a little extra for a product.
It’s supposedly easier to change the habits of the youth, and with a young continent like Africa the possibility to create lifetime customers is endless.
“If you want to be a super-brand then you have to look like a super-brand,” says Wood as he gives examples of how Coke does it best in South Africa and how South Africa’s MTN is pulling it off in Nigeria.
MTN has a market capitalization of around $36 billion and revenue of $18 billion, with more than 200 million subscribers and access to 22 countries in Africa and the Middle East.
It faced some challenges when it began expanding into the rest of Africa.
“The company soon discovered that what works locally does not always work abroad.  Operating across the continent required adapting to local cultures and practices,” says MTN group chief human resources and corporate affairs officer, Paul Newman.
MTN has also come across limiting policies and legislation in some countries.
The opportunity to tap into Africa’s growth is not for international companies alone, but a wake-up call to Africans to take hold of their people and service their needs, but most importantly their pockets. We need to think beyond just agriculture and minerals.
Civil unrest and poor infrastructure aside, Africa and her people clearly have much more to show the world. As for Wood, he thinks that FMCGs will be the driving force behind a lot of countries’ growth.

It Looks Scary,  But Don’t Worry About It

Celestin Rwabukumba is the fresh-faced father of the Rwanda Stock Exchange. Every morning he breezes into work in Kigali with business in his head and the fragile future of one of Africa’s newest stock exchanges in his hands.
“As a country, the sky is the limit,” he says.
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At the age of 39, Rwabukumba must be one of the youngest stock exchange leaders in the world.  Despite his tender years, in business at least, Rwabukumba has every justification to call himself the sage of stock trading in Rwanda. His story is as remarkable as that of the tiny exchange.
Rwabukumba is a survivor of the genocide in Rwanda in 1994. He lost most of his family, including his father, who died in the 100 days of madness that claimed more than 800,000 lives. Like many in Rwanda, he is reluctant to dwell on the horrors that visited upon his family and I do not have the heart to ask him.
What is clear is that Rwabukumba fled his country to the United States where he studied at the University of Buffalo, near New York, and earned a degree in economics. He became a stockbroker in New York and worked on Wall Street.
In 2004, came the call from home and Rwabukumba returned to Rwanda to work on a project to set up capital markets. It bore fruit in 2008, when Rwanda set up a rudimentary over-the-counter exchange, with a whiteboard and marker pens that you only see in schools these days.
On January 3, 2011, the Rwanda Stock Exchange was born in the brand new high-rise building that towers over Kigali. The building itself, is a symbol of the triumph of capital over disaster.
“For many Rwandans, like me, it has made us stronger as a nation. We are a resilient people ready to fight for a better future,” says Rwabukumba.
The RSE may be a speck on the African capital landscape, but it is growing in strength. It must be one of the few exchanges on earth where you can list the listings in one short sentence: NMG, a cross listing from Kenya; KCB, a Kenyan bank; Bralirwa, a brewery in Rwanda and the Bank of Kigali.
Trading is growing slowly; the marker pens are still there. The exchange plans to go electronic in December.
Every day the traders, in their bright red jackets, write out trades that it would take merely seconds for other African exchanges to notch up. In 2011, the RSE traded an average of $131,000 a day; in 2013 this has more than doubled to $292,000.
“My dream is for a big telecommunications company, like MTN, to list here. That would bring more capital and confidence to our market here,” Rwabukumba says.
Rwanda appears far from short of confidence as it emerges from the kind of hell that it has taken other countries in Africa decades to recover from. For the last 10 years, a time when the economies of the world struggled, Rwanda’s economy has grown by an average of 8.2%, according to finance minister Claver Gatete.
“This year, we are predicting 7.5% at the very minimum,” says Gatete.
Gatete, a former ambassador to London and head of the National Bank of Rwanda, took the job of guiding his country’s economy in February.  He says the key to success is the country’s stability and its prudent economic policy that has made it the third easiest place to do business in Africa. The country has fast internet and a will to do business. Credit card giant Visa gave Rwanda a vote of confidence by choosing the country for one of its credit card programs.
“We have come a long way, we have reached the bottom, the only way to go up is to make sure we take ownership of the growth of our economy and sustain it,” says Gatete.
You can register a company in Kigali in six hours and move your money in and out freely. Inflation, in the years after the genocide, was as high as 65%, now it is down to single figures.
Rwanda is also pushing forward the East Africa Community, the trading bloc of one of the fastest growing regions in the world. It has helped speed up trade across it by removing cloying weighbridges and bureaucracy; at the same time bringing in ICT to reduce clearing times.
Corruption is low and the country’s president Paul Kagame has built strong institutions in Rwanda to ensure it doesn’t get a foothold. In many ways the erudite and pragmatic Kagame, who talks like a CEO, has worked hard to shape the country into Rwanda Inc. It was he who encouraged many skilled Rwandans to return home and it is he who sees toughness as the only way to run his country. Legend has it that Kagame has appeared in person in government offices to fire corrupt officials.
“I don’t know about that, but he can fire you across the table in a meeting,” chuckles one of the Kigali inner circle.
When Rwanda struggled to sell its low quality coffee, Kagame brought in a team of United States agronomists to work out how the country could turn it into super-premium grade for export. Commodities, including tea and coffee, now make up more than three quarters of export earnings.
The streets of Kigali are clean and without potholes. Every month, Rwandans, including the president, take a few hours out of their day to clean and repair their neighborhood. Crime is also low among a people who appear exceedingly weary of conflict.
This dedication to order and business reflects on the Kigali skyline. The so-called land of a thousand hills is well on the way to becoming the land of a thousand cranes. The capital, once smashed and littered with dead, is rebuilding from the ground floor upwards. I have been traveling to Kigali since 2005 and was heartened to see new hotels, a sign that strong investment is on the way and accommodation prices could soon be on the way down.  I also saw one of the hotels had a lucky red Chinese lantern hanging from the scaffolding.
The rise from the ashes by the economy of Rwanda has been a remarkable story, but there are problems too. There is a lack of skills and the country’s small coffers are likely to struggle to buy all of the resources and equipment needed for a growing economy. Most of Rwanda’s 45 million people crowd onto scarce land and live from subsistence farming.
Maybe the biggest threat to the investor-friendly stability that Rwanda is trying to build comes from outside its borders. In the unstable eastern region of Goma, in the Democratic Republic of Congo, insurgents fight a running war. A number of donors cut off aid this year after accusing Rwanda of supporting the M23 rebels in the DRC. Rwanda denies this strongly. Gatete hopes private money will replace lost donor funds.
“Rwanda believes that in order to succeed peace is very, very crucial, that is why, when it comes to the DRC, we are the first to support the peace, and we believe that a solution is a regional solution working with the DRC government,” says Gatete, when asked by FORBES AFRICA about the allegations.
At home, many in Kigali say opposition is discouraged, to say the least. Two Rwandan journalists emerged from prison in August after completing a three-year jail term for what the courts called divisionism, genocide denial, defamation and incitement to violence. The two had written a series of articles critical of the government.
“The whole world is not homogenous. We cannot cut and paste democracy for something to look good. It has to work for us. We do not have the kind of democracy where we have a politician saying one thing and then the next day the opposition goes on the radio to say it is wrong. We have a parliament where all members can give constructive ideas,” says Vincent Karega, Rwanda’s ambassador to South Africa.
There is also the question of who will lead Rwanda when Kagame completes his term in 2017.
For the future, Rwanda is banking on ICT and the services industry. Kagame has studied the Asian Tigers and wants to make Rwanda the Singapore of Africa. The country has invested in hundreds of schools and colleges in an attempt to train a workforce capable of making this dream happen.
Many African countries could take a leaf out of Rwanda’s book when it comes to building an economy. True, Rwanda is a small country where it is easier to carry out sweeping changes among a people who are steeled to suffer for a better future by the violence and upheaval that befell their forebears. Taking that into account, there is no reason why many other African nations could not equally take advantage of the free market forces that Rwanda is unfettering by welcoming investors, fighting corruption and speeding up the internet.
Looking ahead, could there be a problem if the government in Rwanda feels it has lost control of its country to wealthy foreign investors? Unlikely, while this generation of politicians rule the roost.
“We want that,” says Gatete, “We need the private sector to be with us to build our economy… This is inclusive of the economic growth that is touching the lives of everybody and everyone is seeing the benefits of what the government is doing.”
It appears Rwanda Inc. is likely to be open for business for a long time to come.

Rwanda Inc. Rules In The Land Of A Thousand Cranes

On June 14, 1914, Sol Plaatje and four young educated African men, clad in British-styled suits and snazzy bow ties, boarded passenger ship, Aberdeen Liner, in Cape Town’s harbor.
The five men were on their way to argue with the British government for the repeal of the Natives’ Land Act of 1913, which had effectively taken away their rights to own land. This was the first shot in the land battle that lingers in South Africa to this day.
“They were pioneers of the black struggle who correctly identified the root cause of the African’s plight and misery. Overnight a native man found himself not a slave but a pariah in his own land,” says Pan Africanist Congress president Letlapha Mphahlele.
The University of Witwatersrand’s history professor Philip Bonner describes Plaatje as a relatively conservative but militant leader who dedicated his life to the freedom of his people.
The harsh provisions of this act appalled Plaatje and sent him on a lifelong mission. He wrote about it in his newspaper column and gave speeches to the African People’s Organisation, of which he was a member.
On the other side, the British government was at the height of its power. The empire held sway over one quarter of the world with territories on every continent.
The African delegation to England was from the South African Native National Congress (SANNC). The team consisted of KwaZulu-Natal born Rev. John Dube, who was the founding president and Oberlin College gradute, in the United States (US); Rev. Walter Rubusana, a Xhosa leader who accompanied the AbaThembu king Sabata Dalindyebo to the coronation of King Edward VII in 1904; Thomas Maphikela, of which little is known; Saul Msane, who had toured Europe with a Zulu choir in 1892 and worked as a compound manager for a gold mine before he was caught up in politics; and Plaatje, an author and journalist.
“I went on the deck to catch the last glimpse of the African shore, with the hilly district to the east, off what used to be Hottentot’s Holland. The majestic Table Mountain was receding in the distance and Cape Town, which had always represented the end of the world to me… was out of sight,” Plaatje wrote in his diary.
En route, Plaatje also wrote a book on the Natives’ Land Act which he hoped to publish on arrival in England.
The Anti-Slavery and Aborigines’ Protection Society, a humanitarian organization for colonial affairs, met the group when they landed in London. It warned them not to agitate the issue until they had met with Secretary of State for the Colonies, Lord Harcourt.
The meeting was a flop. The British said they would not interfere in the affairs of a colony. The five disappointed travelers from South Africa resolved to take their case to the British people. They printed pamphlets and organized meetings. But in a couple of weeks, differences emerged between them and the campaign petered out.
Plaatje stayed on and took a language assistant job at London University. He finished writing the three books that he started on the voyage, including a book railing against the act—Native Life in South Africa.
Plaatje threw himself into a one-man campaign; in two years he addressed roughly 300 meetings in England. On the way he acquired an enemy, John Harris, the organizing secretary of the Anti-Slavery and Aboriginals Society.
Perplexingly, Harris was a supporter of the racial segregation embodied in the act and he used his position to turn people against Plaatje.
In February 1917, Plaatje left England. Less than two years later, the SANCC sent him back with another team, this time to meet the prime minister, David Lloyd George.
Lloyd George told Plaatje and his colleagues they had a powerful case and they had caused him distress.
However, the second rendezvous with the British Empire again yielded nothing. This stalemate sent Plaatje and his one man campaign to the United States and Canada.
In the States, Plaatje shared a platform with Marcus Garvey, the leader of Universal Negro Improvement Association, and the Back to Africa movement.
Plaatje returned home late in 1923 to intensify his lobby but found South Africa’s political landscape even more racially divided.
Plaatje spent the rest of his life as a journalist, human rights campaigner, novelist, translator and linguist. He was the first black person to have kept a war diary; he chronicled the Siege of Mafikeng in the Anglo-Boer War. He also translated Shakespeare’s Comedy of Errors into Setswana. He died on June 19, 1932 from pneumonia while traveling to Johannesburg from his home in Bloemfontein.
Today it would take Plaatje a mere 10 hours to reach London from O.R. Tambo International Airport in Johannesburg, rather than a month by ship, but the land question has changed little.
Nearly 20 years into a democratic South Africa, rural development and land reform Minister Gugile Nkwinti says a mere eight million hectares of land has been handed over, a long way from the targeted 24.6 million. This has cost the government $2.8 billion (R30 billion) and it is estimated that another $2.8 million is needed to finish the program.
A mere 5,000 of the 76,000 claimants took up the land; the rest opted for cash.
Mphahlele says it is a tragedy that people opted for money as many slip back into poverty. He also criticized the willing–buyer, willing-seller policy.
“You have 100 willing buyers, yet there is not a single seller. The whole scheme is easily manipulated by the market forces, they are asking for 20 times the value of the land.”
Agri-South Africa, an agricultural trade association, disagrees.
“As far as Agri-SA is concerned willing-buyer, willing-seller did not fail. We do not think it was the main problem in the implementation of land distribution. We believe the government failed to implement it fully,” says the association’s legal and policy adviser, Annelize Crosby.
“Market value was one of the factors that had to be taken into account when determining a purchase price for land intended for land reform. The government, however, says it intends on moving away from market value as a basis for compensation. The Restitution on Land Commission Rights has conducted poor research with regard to land valuation which has resulted in a very weak implementation of the land restitution.”
Mphahlele, however, counters that claim.
“Land restitution in South Africa, to me, was never meant to remedy the deprivation of African land but act as a painkiller. A painkiller doesn’t heal anything… African farmers are not getting enough support from the government, unlike white farmers who were subsidized by their white minority government,” he says.
“The long delays in land ownership transfers stems from price disputes between sellers and the government, and willing–seller, willing-buyer is the main factor for it. The revised strategy of paying a landowner a just and equitable price for their land will help speed things up,” says African Farmers Association of South Africa deputy president Mandla Buthelezi.
“The accusations that landowners are inflating their prices are impossible. Land valuers are appointed by the government; land owners cannot influence the price. The price can be negotiated with the land owner but he cannot dictate terms to the government,” argues Theo de Jager, Agri-SA deputy president and registered property valuer.
With debate as passionate and pertinent as that which followed the Natives’ Land Act exactly 100 years ago; you can be sure if Plaatje and company were around today, they would be taking the Gautrain to O.R. Tambo Airport.

100 Years Of Doing Nothing

Every day, 69-year-old Piet Kemp ventures out onto his farm, where the laborers speak neither English nor Afrikaans, at a time when many people are retiring. He is starting afresh 13,000 kilometers away from home, chasing the impossible dream.
In 2010, Georgia’s government asked the Transvaal Agricultural Union of South Africa (TAU SA) to help revive its once mighty farming industry. South African farmers would take their years of experience in cattle and crop farming to Georgia.
TAU SA cite violent attacks on many farmers in South Africa as one of the reasons to take up the opportunity to farm on freehold land in a country that wants its farms to work again.
<img loading="lazy" decoding="async" class="alignleft size-medium wp-image-2217" src="/wp-content/uploads/2017/04/582120_10151855176275508_749443_n-300x200.jpg" alt="" width="300" height="200" />
Kemp was one of those farmers who heeded the call. Before leaving for Georgia, Kemp was a corn and cattle farmer near Ermelo in South Africa’s north-eastern province, Mpumalanga. He has been living in Georgia with his family since 2011, renting around 700 hectares of land, cultivating corn and wheat.
“It’s a difficult land to farm in. Sometimes, when the tractor is broken you can’t get things from the shop. We wait a long time for parts,” he says.
As for speaking Georgian fluently, he says his wife, Martie, is better at it, but a translator often helps them communicate with his 26 laborers.
It’s been nearly two years since skilled South African farmers, such as Kemp, boarded a plane for the former Soviet republic of Georgia on the promise of cheap freehold land. This country is as big as the Free State province in South Africa.
But not all Georgians welcomed them with open arms. Many said the authorities should be supporting them instead of immigrants. Two months ago, the Georgian government passed a moratorium on selling land to foreigners until 2014.
Bennie van Zyl, general manager of TAU SA, says that Georgia is an attractive country for South African farmers because of its safety and efficiency. His organization takes around 160 farmers on tour every year in the hope of selling the dream.
“Our intention is not to take all the farmers to Georgia, 90% [on the tour] still consider the offer, while around 10% say no,” he says.
Back home, reforms by the country’s ruling African National Congress to transfer white-owned farms to black people, following the fall of apartheid, is another reason that drove white farmers to leave. When apartheid ended in 1994, nearly all the commercial farms belonged to white people. This inequity of land ownership dates back to the Natives’ Land Act of 1913.
Many farmers grew angry when the government started to redistribute farmland. Kemp says it was one of the reasons he felt he had to leave.
According to Reuters, the number of white farmers in South Africa has decreased by a third to 40,000 in the past 15 years.
But Georgia is not the only country where South African farmers are sought after. Van Zyl says there’s been demand for farmers by other countries on the continent. Around 800 South African farmers are farming in, or extended their farms into Mozambique. Other countries showing a keen interest in farmers from South Africa and Zimbabwe are Congo-Brazzaville and Zambia.
This means that farmers such as Kemp are foot soldiers in the field trying to justify their radical decision to leave home in an attempt to find greener pastures in the autumn of
life.

Leaving A Broken Dream  For An Impossible One

Another answer to Africa’s energy shortage could be sitting thousands of meters off the south coast of the continent. Its extraction could cause a row between interested parties.
British company, OK Energy Limited, is on the hunt for potential oil and gas energy (hydrocarbon) reserves in the East Algoa Exploration Area, under the Indian Ocean. The area is off the eastern coast of Port Elizabeth and is 9,314km² and reaches a depth of approximately 4,000m.
OK Energy appointed a South African company, Environmental Resources Management (ERM), to prepare the environmental management program for Petroleum Agency South Africa (PASA) ahead of consideration and approval by the government.
OK Energy submitted two applications to PASA between March and August as per government’s licensing requirements. A decision is expected before the end of the year. If the bid is successful, it will add to the existing exploration of ExxonMobil reserves in South Africa and the Great Rift Valley in Kenya.
The applications included a consultation process. According to ERM reports, community meetings and an environmental program were required. These activities involved the evaluation of the environmental and social setting, identifying potential impacts and developing a plan to reduce them. The company received approval to go ahead with seismic processes in 2014.
“For the East Algoa Area, currently there are no outstanding stakeholder issues and the process is likely to lead to PASA granting the exploration right later this year. We would then look at acquiring seismic data, either in conjunction with another operation in 2013, or our own in 2014,” says Paul Barrett, OK Energy’s director and geologist.
“South Africa will benefit from significant tax and royalty revenues—the local area, especially Port Elizabeth’s port, will benefit from a large amount of fabrication and support activity to build and operate any oil field development.”
“The geology of the coastal region suggests that deepwater oil reservoirs may have been deposited. This is totally unproven and ourselves and Impact/ExxonMobil, our neighboring licence holders, are using worldwide analogues to drive our exploration focus. It is a high-risk area in terms of finding hydrocarbons, but if it works it will be significant,” says Barrett.
“The rights to all of South Africa’s oil resources should be given to PetroSA because it’s state-owned. There’s no guarantee that oil will be cheaper because it’s being sourced from our oceans,” says Bobby Peek, director of a non-governmental organization Groundwork.
Peek, an environmentalist, also warns that the seismic activities in the oceans could drive dolphins and whales away.
PetroSA has proposed an amendment bill to Parliament, which significantly widens the scope of state involvement in mineral production, making it the custodian of the state’s allocation for all petroleum rights.
This has led to a backlash from the industry’s interested parties, like ExxonMobil and Anardako, with warnings that the proposed amendments could deter investment in South Africa at a time when prospects for gas and oil discoveries are good.

Energy Under The Waves

Africa, there is a growing trend of prosecuting former presidents, which is stiffening resistance to democratic transitions. It creates dictators who cling to power and impede fresh ideas.
The list is long. Zimbabwe’s Robert Mugabe, Equatorial Guineas’ Teodoro Obiang Nguema Mbasogo, Angola’s Jose Eduardo Dos Santos, Congo Republic’s Denis Sassou Nguesso, Uganda’s Yoweri Museveni and Swaziland’s King Mswati III. All have ruled for more than a quarter of a century.
<div id="attachment_2209" style="width: 215px" class="wp-caption alignleft"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-2209" class="size-medium wp-image-2209" src="/wp-content/uploads/2017/04/Par1766006-205x300.jpg" alt="" width="205" height="300" />Zambia&#8217;s former president Frederick Chiluba gives the thumbs up outside the Magistrates Courts on Febrauary 15, 2008 in Lusaka after the court ruled today that Chiluba should face a corruption trial in May. Chiluba would have to show cause why he should not be convicted on charges of theft of public funds and abuse of office, prosecutor Mutembo Nchito told AFP after the ruling by Lusaka Magistrate Jones Chinyama.</div>
Political commentators say that some leaders who come from poor backgrounds are tempted to hang onto power for fear that poverty awaits in the unknown.
Zambia appears to be a dangerous country in which to step down from power. It is also the only country on the continent where nearly all of its ex-presidents have been investigated and prosecuted. The only exception was Levy Mwanawasa, who died in office.
This is a precedent that is worrying both democratically and economically for Zambia and its people.
Weaknesses in Zambia’s institutions have resulted in abuse of power and malpractice. Lack of enforcement by these institutions to bring culprits to book has also resulted in the embezzlement of coffers.
“The Zambian legislation has major constraints but our leaders don’t care and continuously use immunity to abuse office. What should happen is that the use of immunity should be detected and whoever is involved should be prosecuted. They should not wait until leaders vacate the office for charges to be brought against them,” says economist, Oliver Saasa.
Zambia, like many African nations, has suffered a dearth of democracy since gaining statehood. Independence leader Kenneth Kaunda created a one-party state, which took 27 years to overturn.
Kaunda was voted out in 1991. His successor, former labor leader Frederick Chiluba, left office voluntarily, though under a cloud, after being accused of corruption and abusing the political process. The next two presidents were members of Chiluba’s Movement for Multiparty Democracy, but in 2011 Michael Sata of the Patriotic Front (PF) defeated incumbent Rupiah Banda.
All these leaders have ruled with immunity, accessing treasury funds and misusing the country’s resources. This has led to the investigation and prosecution of the leaders. Commentators see only one way out.
“The best thing for Zambia will be if a head of state commits a transgression that the constitution does not support, then they must be impeached. Parliamentarians must be of moral high ground and should protect the constitution and not act on political alignments and impeach corrupt leaders,” says Saasa.
<div id="attachment_2210" style="width: 239px" class="wp-caption alignleft"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-2210" class="size-medium wp-image-2210" src="/wp-content/uploads/2017/04/000_Was1065479-229x300.jpg" alt="" width="229" height="300" />Zambia&#8217;s President Levy Patrick Mwanawasa addresses the 62nd UN General Assembly at the United Nations, 26 September 2007. AFP PHOTO/Emmanuel DUNAND</div>
Sources in Zambia say elected leaders should be above board. People seeking presidency must be able to translate the constitution and use it well in leading a nation instead of using it to quell opposition. They say Zambian leaders should remember that no one is above the law.
After leaving office, Kaunda clashed frequently with Chiluba’s government. He planned to run against Chiluba in the 1996 presidential election, but withdrew after constitutional amendments were passed, rendering him ineligible. In 1997, Kaunda was arrested on charges of inciting an attempted coup. He was released six days later, but placed under house arrest until a court case in June 1998 in which all charges were withdrawn. Famously, he grew a white beard in protest against his incarceration.
From 2003 onwards, after his departure from the presidency, Chiluba was arrested and charged with corruption. Subsequent long-running trials were dogged by adjournments and procedural problems. In March 2013, Rupiah Banda was charged with abuse of power shortly after being stripped of immunity.
But what does the future hold for Zambia’s leaders?
The Sata government is increasingly using its powers for ill, in the way previous heads of state did, with opposition leaders arrested, youth meetings banned, political rallies blocked by riot police, allegations of judicial interference and ministerial corruption, smear campaigns in government media and lawsuits against journalists.
Opposition figures complain that Zambia’s leadership is dragging the country back to a one-party system. Saasa says that Zambia is deteriorating by the day and being run like a dictatorship.
“Zambia’s previous governments have failed to respect the rule of law, which is very dangerous to citizens, and it is clear from recent conduct that officials of the PF government regard themselves as above the law, which may lead to investigating the president and his officials after their end of rule,” says Saasa.
It is difficult to judge the legitimacy of any particular legal charge but so far, the government’s effort to bring corrupt leaders to face the law has led to few trials and convictions. Simply claiming an offense can inflict political and economic damage and discourage further public involvement.
“In our case, a bad piece of legislation has contributed to bad governance. Investors will not want to come and invest in a country where leaders don’t adhere to the rule of law. Economic and political stability is key and if the head of state is questionable in his leadership and dealings, investors will be jittery about investing in such a country; and Zambia is such a country right now. With these weak institutions it means that you are at war with your own citizens, regional bodies and trading blocs, as well as an  international community that includes donor agencies. This is not good for Zambia and it is causing a lot of problems,” says Saasa.
There has always been existential threat to the rule of law and judicial independence in Zambia, resulting in ruling with immunity. Recently the PF pledged to fill the judiciary with its members and Sata suspended three judges hearing a case involving the Post’s owner and editor, Fred Mmembe.
Wynter Kabimba, the justice minister, complained of a dictatorship of the judiciary which needed to be nipped in the bud. He even threatened to dissolve the judiciary.
“Zambian leaders have been tasked and trusted by the electorate to look after their resources but the leaders have used impunity to misuse such resources and for that they must face the law. I think what Zambians want is a more present system of an oversight. An oversight that is strong regardless of political alignment, one that can detect current leaders’ abuse of office. They must be given power and authority by the constitution to charge a seating president with malpractice,” says another political commentator who asked not to be named.
Laws must give oversight institutions, like the anti-corruption authority, power to detect, arrest and charge leaders involved in abuse of office and corruption. Zambia should start thinking of doing away with impunity because it will be the only way to deal with corrupt leaders. We must have a transparent system that is open and follows the rule of law.
Ironically, while candidate Sata campaigned against claims of past MMD corruption, he has impeded investigations of its own members. He insists that the Anti-Corruption Commission receives his permission to investigate cabinet members.
“Given this government’s established pattern of using violence and ethnic hate speech as a political strategy, we should be very concerned over what could happen next,” says Saasa.
Zambia is no dictatorship, but the trend is worrisome and goes beyond the tendency of all politicians everywhere to manipulate power to their advantage. Zambia’s leaders should peer into the future and resist the authoritarian tendency. All sides should agree to circumscribe powers which can be abused by any party in power. Otherwise the future for Zambia could be very bleak indeed.

Tag: October 2013

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