Gert Grobler should have retired a while ago. He is over the age, and served with distinction as South Africa’s ambassador in Spain and then Japan, prestigious appointments. Trading Tokyo’s opulence for the tarnish of Antananarivo is not considered an attractive offer.
But when Grobler was due to retire, the powers that be asked him to stay on to resolve the problematic politics of Madagascar.
“What could I do? They asked me to help,” he says, when I ask how the glitzy residence in Tokyo compares with the poverty of ‘Tana, as Madagascar’s capital is known.
Madagascan politics are fraught. The incumbent president was there because of a coup, unrecognized by South Africa, who hosted the ‘real’ president, Marc Ravalomanana, at considerable expense to taxpayers for four years.
South Africa has major mining and tourism interests in the large island state of Madagascar, a state which has been loyal to France, has been riddled with corruption, and has been run by proxy presidents whose strings are pulled by puppet masters in the five major families.
As it turned out, the elections held this January &#8211; after banning both the incumbent president and the real president from standing &#8211; resulted in the election of President Hery Rajaonarimampianina, not exactly South Africa’s choice.
It was a relatively free and fair election, so South Africa supported the outcome and Grobler had to try to exert South Africa’s influence, against fierce French rivalry.
Many ambassadors are lazy, and as many are useless. Grobler works hard. So it came about that Rajaonarimampianina, on his visit to South Africa in May for President Jacob Zuma’s inauguration, enjoyed a slew of high-level important meetings, from the Development Bank of South Africa (DBSA) to a private lunch at Werksmans Attorneys, a lunch I chaired.
The new president outlined his tasks, explained his attitude to the return of former President Ravalomanana, and came across as a good guy intent on ridding his country of corruption, being his own man not answerable to the five families, and having a serious grasp of his island’s finances, treasury, business opportunities and threats.
A short, friendly man, he speaks fluent French and Malagasy and is eloquent in English, only resorting to an interpreter once or twice.
He plays tennis and follows soccer, has five children, been married twice, and was the Minister of Finance under the coup administration.
“Madagascar is the land of opportunity,” he says at the lunch. A cliché, yet I believe him.
“We are creating an environment that is good for investment. On the energy front there is huge potential for solar energy, but we need capital and a return on investment.”
Asked questions on air travel, the cost of which is a sore point for tourists, he says, “We have open skies and I invite your South African companies to come to develop tourism.”
His biggest challenge?
“To eradicate the extreme poverty in Madagascar. That’s number one. Then to bring jobs is a first aim, and to create different services in education.”
Poverty, jobs, education. Good priorities.
In the interview, he suggests investment in agriculture is tops in business opportunities, then mining, tourism and renewable energy.
“We have ports, roads, airports, so you can move freely in Madagascar, but infrastructure is still a problem.”
Pretty new in the job, is he a new broom sweeping clean?
“We are in the beginning of my mandate,” he admits disarmingly. “This transition is important. A new president brings a new framework and authority to fight corruption and it is important to set up a new kind of democracy in Madagascar.”
Presumably one that doesn’t rely on patronage from the five almost-royal families or from big business or the military?
The big question is what will he do about the exiled former president, Ravalomanana?
“His return will be better if it can happen in a peaceful and fair environment. I am not sure if it is there [yet]. This is not the time for it but I am sure it can happen.”
“Ravalomanana is a patriotic person and wants the best for the country. He has a problem with justice and we have to find a solution to that before he returns.”
After being ousted in a coup, Ravalomanana was tried in absentia for ordering his troops to fire on protestors. The court sentenced him, also in absentia, in what the whole world saw as a kangaroo court decision. But the decision is still binding, although the new president probably has some legal leeway to have it rescinded.
“If I say he must stay for a while in South Africa it is a transitional thing. He also has real tax he must pay from the past and to be fair to the citizens it is the rule of law, everyone has to pay his duty. He has a debt in that and he has to pay or at least he has to come to a negotiation to settle this debt.
“The Malagasy courts are sovereign over the criminal charges. He has accepted the decisions of the court of a formal government. If he wants to be amnestied he must apply.”
But what about France’s influence?
“France is our historical partner. France has its place. But I’m not sure it has an influence on my politics. The voice of France is always listened to. But the world is now globalized.”
One of Rajaonarimampianina’s major priorities is to curb the illegal export of rosewood.
“That was my first challenge. To fight for the authority of the state and fight the illegal traffic of rosewood, gold, indigenous animals, turtles and all the endemics.”
Rajaonarimampianina has a Master’s in Economics from the University of Quebec and a Diploma of Certified Accounting. He was on the Board of Accounting of Canada. He started his own accounting firm in ‘Tana in 1995, and was then proposed in 2009 by the private sector to serve their interests as Finance Minister in the coup government.
Being president is a step up but one that Rajaonarimampianina relishes.
“I do it with pride, joy and conviction.”
The new president is a far cry from the person he replaced. Coup leader Andry Rajoelina was popularly known as a failed disc jockey, doing the bidding of a puppet master of one of the five families.
Rajaonarimampianina brings technical knowledge, university degrees in finance and a more appealing personality to the job.
It will be difficult to drag the island up from the depths to which it has descended. He may just be the man to do it. Certainly everyone in Africa wishes him and his country the very best.
As for Gert, he’ll still be there for a while.
“You get old, but you try to help where you can,” he says.

The Accountant Turned President

South Africa’s youth represent around a third of the country’s population. Young people are the future; they are a national resource and a source of renewal.
The country’s 20-year-old democracy includes ‘born frees’, referring to the generation born after the apartheid era ended in 1994. They have only known a free South Africa. It is estimated that just over 600,000 South Africans were born the year the African National Congress (ANC) came to power. The polls will determine a new National Assembly as well as new legislatures in each of the country’s nine provinces. As per the website of the Electoral Commission of South Africa (IEC), there are about 700,000 registered male and female voters in the 18-19 age group.
There has been a lot of speculation about the impact the vote of the ‘born frees’ is likely to have; some say this generation is apathetic and uninterested in the current political discourse. FORBES WOMAN AFRICA took to the streets of Johannesburg to gauge the sentiments of the young voter.
<h5>One excited registered voter is Nikita Maharajh from Durban in KwaZulu-Natal province. She is a graduate student of chemistry at the University of Witwatersrand.</h5>
“As a kid I remember reading a poem which said, ‘one vote can change the nation’, and it has stuck with me until today. Born in 1994, I am a product of democracy. I hope  our generation will be the change for a better South Africa.”
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<h5>Refilwe Morapeli has heard stories of the hardships faced by her parents’ generation. Morapeli’s father was a political activist during the apartheid years. She refuses to be swayed by the politics of the past, and has chosen to find her own identity without being cynical.</h5>
“Being able to vote at my age is incredible. My parents and grandparents lived through apartheid and I believe they have set the standard of the importance of being involved with citizens of the country and how morality should be part of our country’s values.”
<h5>Courtney Townsend, a photography student at Vega School of Leadership, believes casting her vote will increase her chances of changing the future.</h5>
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“I live on a farm in Nelspruit [capital of Mpumalanga province], and our house is the only decent one in the area. We are surrounded by hundreds of shacks occupied by people who haven’t tasted the fruits of South African democracy. The majority of families residing around my parents’ farm, Low’s Creek, either work at the mines in the area or in nearby farms, and their children attend schools that cater a very low standard of education that can only get them so far in life. The government has failed its people. The wealth gap, for which I hold it accountable, still needs to be addressed.”
<h5>Dumelang Makhooane is a 20-year-old first year photography student at Vega School of Leadership in Johannesburg. Despite the freedom of choice in the upcoming elections, she says many first-time voters will be influenced by their parents.</h5>
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“Freedom is an illusion. As much as you get democracy, you don’t really get the democracy [that was promised]. As much as my generation is encouraged to participate in this significant election, it does not change the fact that a huge governing body in the life of anybody my age is family. Our parents still play the role of government in our lives.”

Born Free, But Is It An Illusion?

Politics is a dirty game, but when gender becomes part of the mudslinging, there is a dangerous detraction that muddies political waters, especially at a time when South Africa should be building on its 20 years of democracy.
While women’s participation in politics in South Africa may rank among the highest in the world, there is disparity between the way female politicians are treated in relation to their male counterparts. Politics allows an attitude of permissiveness, where sexist insults and criticism are par for the course in the cutthroat, survival-of-the-fittest political game. It is almost as if so long as you decry rape and violence against women, most other gender-based barbs, quips and caricaturizations sneak by the green light.
Recent media articles, debates and Twitter trends have trained a sharp spotlight on how 20 years into democracy, gender issues continue to be entwined with issues of race, class, lingering social division and double standards. It is this complexity that is at the heart of the matter.
FORBES WOMAN AFRICA spoke to three prominent South African politicians about how much of the glass ceiling they have smashed. While the positions they hold shape critical agendas, female politicians are routinely name-called, even by each other.
Why does the African National Congress Women’s League (ANCWL) not believe it can put forward a female presidential candidate and why does Twitter trend because of an MP’s dress?
Helen Zille
Democratic Alliance (DA)
As head of the opposition, Zille is no stranger to dishing out criticism or taking it. She believes strong women leaders – the DA’s top three are women – are comfortable and confident to lead.
What concerns the Western Cape Premier, though, is that the hostile arena of politics dissuades other women from entering the fray. “I fear many women feel inhibited from assuming leadership roles because of the abuse and invective they face in the public square,” she says. And the invective that circulates is not for the faint-hearted. Former African National Congress Youth League (ANCYL) leaders Julius Malema and Floyd Shivambu have openly passed comments about her, which Malema has later defended as part of “public debate”.
“Persons guilty of sexist behavior should be named and shamed. There is no place for such behavior in our society. But, we need to address the underlying causes of sexism, which begins in the family and in communities,” she says.
Zille came under fire earlier this year following a public spat with DA Youth leader Mbali Ntuli, who criticized the DA’s march on the ANC headquarters during a jobs march. Zille called Ntuli a “princess” and “prima donna”, but she says: “I was describing indulgent and petulant behavior. My response would have been equally robust if it was directed at a man.”
Zille cautions that gender issues can become media fodder and headline grabbers. It can take away the focus that recognizes the strides women have made.
Mamphela Ramphele
Agang
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Mamphela Ramphele’s entry into the political arena as leader of Agang last year was bound to see daggers drawn. She was not surprised, but is disappointed at how a woman in power still unsettles many men.
“The more women succeed, the more many insecure men feel threatened. Women remain ‘out of place’ as leaders in male-dominated societies and it is not in politics alone,” she says.
It was Ramphele’s peck on the lips with the DA’s Zille, in their short-lived political partnership earlier this year that took on all kinds of sexualized caricaturization. It shifted from jokes and the material of satirists to become crass, cringe-worthy and below the belt – all with sexist overtones. She puts it down to media’s inability to move forward or to look at the deeper context surrounding issues of sexism in society. For Ramphele, it means the debate must move forward and beyond gender as seen in isolation from other issues that threaten freedom. It is the role of media, business, those in education and female leaders to use their power more definitively. She insists South Africa is ready for a black female president, however, she is under no illusion that women in many sectors of society remain second-class citizens.
“For millions of our daughters, the notion of gender equality remains a distant dream in the daily battle just to stay alive. How can they see themselves as leaders? Yet women lead families and communities, providing the strength and stability (emotional, financial) for many. We need to find ways to empower women to lead in their communities and beyond,” says Ramphele.
Thandile Sunduza
African National Congress (ANC)
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“Maybe if I wasn’t pregnant I would have just been able to make a joke about the tweets, but why is it not okay for big women to show off that they are pregnant. Why is big not a brand or sexy? We have many big African women in Parliament, but we play the culture card when it’s convenient for us,”
says Sunduza.
She says it was hurtful that it was mostly women, and black women in particular, who led the Twitter taunts.
“We have a pull-her-down mentality that shows we are still not liberated. When women don’t stand up for each other, we elevate the patriarchy that still exists in Africa.”
She takes a swipe at journalists who tweet before they think, egging each other on.
The damage was done in minutes.
“Of course we have freedom of expression in this country, but people need to think about other people’s dignity and rights,” she says.
Sunduza says a growing culture of mockery as acceptable behavior, be it gender-based or otherwise, is worrying.
“How many people were interested in the President’s State of the Nation speech, and how many more people were interested in my dress? What does it teach our young people? That’s sad [to] me,” she says.

‘Women Must  Stand Up For Each Other’

A white marquee goes up in Chinatown behind police cordons. It is not mid-Autumn festival, it is not Chinese New Year, this is bigger: the South African president is coming to town.
Jacob Zuma’s visit to the Cyrildene Chinatown, in Johannesburg, in October was the type of theatre that only business and politics can deliver. This was a spectacle of influence and a performance full of the choreography of friendship and co-operation. It defines much of how Chinese business is done in South Africa. Anderson Lee is a businessman; head of the Chinese community policing forum (CPF) and the deputy editor of one of three Chinese-language newspapers in South Africa, the China News. Lee is also a coordinator for the Chinese chapter of the ruling political party’s Progressive Business Forum (PBF).
“We have been working on getting the president here for years,” says Lee, seated in the CPF’s offices along the main drag of Johannesburg’s second Chinatown that mushroomed in the late 1990s.
It mirrors the mass arrival of Chinese newcomers and ties in with the cementing of diplomatic ties between the People’s Republic of China and South Africa in 1998.
Political connections are a business lubricant and the reason the community’s business people can set a target to raise around $100,000 for the PBF each year. The walls of the CPF offices are lined with photographs of VIPs posing next to oversized cheques.
There is also a satellite police office here and the policemen are being taught to speak Chinese. Lee says it is not reverse assimilation.
“Some policemen who don’t know the community treat the Chinese badly. But if we can teach them about us, and our language then we start to change their minds.”
Zuma’s Chinatown appearance was a triumph for the Chinese business community. But there are many Chinese migrants who don’t benefit from political favors.
The Chinese Embassy in Pretoria dodges questions on the number of Chinese in South Africa; the amount of smaller businesses operating in South Africa; how many visas are granted and its assistance programs for Chinese business people. What is known is that bilateral trade remains healthy and last year totaled $60 billion.
Lee arrived in South Africa in 1999 as an employee of a state-owned agricultural supplies company but he knew nothing about the country.
“I once drove from Johannesburg to Durban to meet farmers even though I didn’t know how to drive, but I did it because it’s business,” says Lee of the risks he used to take.
In 2005, state funding for the company he worked for dried up. Lee was given the option to head back to China or to go it alone. He stayed and now exports South African goods, such as wine, macadamia nuts and avocado oil, back to China.
Lee sees the full range of Chinese life stories play out on South African soil. For every tale of success there are as many failures. There are hawkers surviving on slim profits and waitresses who work for a few years before returning to China. On the other hand, there are restaurant owners who start out in the familiarity of Chinatown then spread their wings to swankier suburbs.
The container revolution of the early 2000s helped make Johannesburg the largest dry port in Africa. Direct supply was key to transforming the fortunes of those who hawked on streets.
“Once people had direct supply from China, their businesses could grow. The Chinese make money because they work hard and they’re flexible, they will do with a little for a long time and they save their money,” Lee says.
Warehouse-style malls have now started to rise in response to crime and hostilities directed at Chinese hawkers. The man who opened Johannesburg’s first Chinese mall is Robin Xu. He arrived in South Africa in 1994 and within two months was held up by criminals. In the 20 years Xu has been in South Africa, he has been a victim of crime four times.
The Chinese are seen as soft targets because they deal in cash transactions. Xu saw the need for a more secure environment and so China Mall in Amalgam, west of the city, came into being. He owns three malls today, two in Johannesburg and one in Durban. Alongside his are a slew of others.
Xu though says the market for malls is reaching saturation point. His second Johannesburg mall, China Mall West, has dozens of empty shops. It is the whim of the markets and why Xu says it is a mistake to think every Chinese person has an easy ride to financial success. More than saturation points and downward trends, crime and corruption dents business confidence and scares off entrepreneurs most.
“Local customs officials go through the people coming off flights from China. They don’t confiscate things to destroy them, but take them for themselves. It makes business people think South Africa is a dirty country,” says Xu.
Though Xu is also part of the PBF and displays magazines of the ruling political party, the ANC, in his office, even political connections are not enough to calm his fears. He says people are looking north of the Limpopo for the next business destinations.
Back in Chinatown, metro police officers confiscate goods and take people’s money under the pretext of bylaw enforcement. The action is applied so sporadically it is a show of power rather than real policing.
Property agent Alice Hu moved into Cyrildene before the boom of Chinatown. She has seen the enlarging footprint of the Chinese in South Africa kick up all kinds of contradictions that have fomented into a toxic symbiosis of political and business back scratching.
Hu arrived from Taiwan in 1990. The Taiwanese wave of migration to South Africa gained ground in the 1970s and 1980s when the apartheid government courted trade with other nations on the global periphery.
She is quick to point out that she took a legal route to form a prominent property agency. Hu is tired of the stereotypes. She is also irked by the assumptions that she is willing to bribe her way up the economic food chain; to string sheets across her windows as curtains; or to illegally build onto to her home.
She calls herself mixed masala. South Africa has been her home for 24 years but she prefers to drink a rare variety of oolong tea, harvested in the mountains of the country where she was born.

Made In China, Sold In Africa

The selection of Hage Geingob as a future presidential candidate, during the party congress, has been widely seen as the end of the 50 years of liberation politics, which former President Sam Nujoma had dominated. A sigh of relief by the local and international business community—who feared a Zimbabwean-like land nationalization program and a confiscatory tax regime, had either of his opponents won—was heard across Namibia.
While he still has to face national and presidential elections in two years’ time, Namibia’s single-party dominant system is such that only a major political catastrophe would prevent Geingob from replacing President Hifikepunye Pohamba in 2015.
Geingob was Namibia’s prime minister since independence, in 1990, until suddenly being dismissed by Samuel Nujoma in 2002. He was banished to the political wilderness for five years before being re-appointed as prime minister by Pohamba in a transitional Cabinet that is notable for its promotion of technocrats.
Government insiders said that Geingob’s surprisingly easy victory over the more trenchant elements of the party, that has ruled Namibia since independence, would now see the country adopt a more developmental economy model. This is opposed to its current ‘mixed economy’ approach, whose success, to a large extent, would depend on oil and gas being discovered off the Namibian Atlantic coastline.
Geingob’s approach was not at variance with the ruling party’s official policies, his stress on an energy-based economy, which is needed to bring development to rural areas and address massive unemployment of more than 53%, was one that would see the state take on a more assertive role in developing the economy, according to analysts.
While the details still are not clear, chances are that Namibia under Geingob will adopt a policy of national champions as espoused by the Asian Tigers. This will boost local manufacturing and the development of so-called ‘energy corridors’ linking Namibia to its land-bound neighbors such as Botswana, Zambia and those further afield such as the Democratic Republic of the Congo, amongst others.
“The Namibian government under Geingob is increasingly likely to look towards the other BRICS (Brazil, Russia, India, China and South Africa) countries for development partners because of the ongoing crises in the Euro and Dollar areas,” says Professor Andre du Pisani, head of the University of Namibia’s Economics department and a high-level government advisor.
The stress, he said, would be more on pragmatic politics and economic cooperation, rather than the ideological stance that has characterized much of SWAPO’s 50-year-long history as battler of imperial colonialists.
As a stable democracy blessed with good, if not super-abundant, resources supported by a strong mining industry; a world-class fisheries sector and good tourism potential—Namibia has never quite met high expectations because of a lingering ideological rift between moderates and hard-line nationalists that often saw executive decisions getting bogged down in turf battles.
Geingob has made much of the fact that while the country, and its ruling party, has adopted progressive policies over the past 22 years, where it most often failed was in implementing those policies. His political victory as a moderate has raised hopes that the economy would now get out of the blocks and overcome its political inertia.
And signs are that this time, this could actually happen. In what amounted to the biggest surprise over the outcome of the party’s congress, incumbent President Pohamba announced a sudden major Cabinet reshuffle two days later that firmly sidelined the hard-line factions without totally alienating them by re-assigning half of the 24 ministerial positions in a careful political balancing act.
Former regional government and housing minister Jerry Ekandjo, who is Geingob’s strongest opponent and a noted party hardliner and Nujoma loyalists, who backed by the party’s youth league had waged an increasingly nasty campaign for the presidential nomination, were re-assigned to the ministry of youth and sports instead.
Former justice minister and party secretary-general, Pendukeni Iivula-Ithana, who had hopes of becoming Namibia’s first female president, was thrown a political lifeline by being handed the politically powerful home affairs portfolio. This after she switched her support to Geingob during the congress, rather than supporting Ekandjo, whose political views she echoes.
And to keep everything in the family, Utoni Nujoma, who first backed Iivula-Ithana but then switched back to Ekandjo, was handed the justice portfolio.
He was replaced by technocrat Netumbo Nandi-Ndaitwah as foreign affairs minister.
Pohamba, who had taken over from Nujoma as his preferred candidate in 2004, has always labored under the perception that he was a mere figurehead doing Nujoma’s bidding; this amounted to his greatest political moment in the 50 years he has lived in Nujoma’s shadow: “Going out with a bang,” as he had put it to a political confidante.
His open backing of Geingob, which upset the other two candidates no end, has effectively allowed him to bestow his own legacy upon the party by helping to elect the first non-Oshiwambo person to the country’s most powerful office and so bring to an end to Nujoma’s domination of a party he helped found in 1960.
Geingob’s victory also saw moderates make a clean sweep of all the top offices in the party hierarchy; putting paid to a mooted plan to have the hard-line Ekandjo take over the presidency for one term in order to prepare the way for Nujoma’s son, Utoni, to have a clean run at the presidency in 2019.
In his closing speech to the congress, Pohamba, with uncharacteristic frankness, referred to a “watershed” moment in the party’s history. Although he did not say so, the message was clear after Nujoma had called for a female presidential candidate, allegedly to split the pro-Geingob vote and hand victory to Ekandjo, only to see Iivula-Ithana humiliated with a mere 10% of the vote as delegates deserted her in favor of Geingob.
All agree that the rising resource nationalism as espoused by the hard-line factions in the party had now been taken off the table, although questions remained how an even-handed Geingob would be in framing policies as future president, says Graham Hopwood, director of the Institute for Public Policy Research (IPPR), a local think-tank.
“The question hanging over the Geingob candidacy is whether he will be able to distance himself from the interests of big business when making executive decisions and crafting policy,” Hopwood noted.
On the one hand, Geingob fought off Walmart’s proposed entry into the local market as not being in the interest of Namibia, but then also granted special tax status to French nuclear company Areva, a benefit that other uranium miners did not have, according to Hopwood.
This latter aspect is perhaps the most troubling aspect in an otherwise newly optimistic landscape: Geingob has admitted to receiving a $300,000 consultancy fee from Areva, albeit while still just a party backbencher in 2007.
But at least one can now expect that any future political debate over Namibia’s future would be centered on issues, rather than personalities, and that in itself amounted to major political progress, all agreed.

The Tide Turns

Catherine Masinde had a front row seat—or rather, a front row tent—for the difficult birth of South Sudan. It was tough in Juba in the years leading up to statehood; there were three cars on the road, it was muddy and uncomfortable.
In the last year, both Masinde and South Sudan have moved onwards and upwards. South Sudan has secured statehood and Masinde has moved up to what she calls a “half star” hotel. It may be tiny, but at least it has air-conditioning. This Kenyan is the World Bank’s investment climate specialist in South Sudan.
The eyes of the world were on the birth of South Sudan when it became the world’s newest state in July 2011, a moment the people had longed for and voted for.
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So what does 2012 and beyond hold for a country with the odds stacked against it? It has suffered two civil wars and the economy is precariously dependent on oil. More than half a century of war has left the country frozen in time; building it up will take a lot of time, hard work and investment.
South Sudan is covered in dirt roads that turn to mud when it rains. Electricity is for the lucky 1% and comes from expensive diesel generators. Despite a combined GDP with the North of $30 billion, an estimated four billion barrels in oil reserves and a rich mineral base, 90% of the population lives below the poverty line.
Masinde, who is helping the government of South Sudan rebuild and reform to win investment, is seeing signs of economic recovery.
The three private cars rolling along the dirt roads of Juba in 2005 are now competing in traffic with more than 1,000 vehicles.
“It’s a huge task but as they say: surely surely, slowly slowly,” says Masinde.
Business registries have risen from 136 in 2005 to more than 12,000. About 65% of these are in the service industry, with half of those in construction. The country is a blank slate for the builder.
Excel Construction Ltd carried out the World Bank-funded construction of two education centers in Juba. South Sudan Logistics has been building lodges and clinics since 2005.
The government of the United States is paving a 200km road from Juba to the Ugandan border. Uganda is one of South Sudan’s major trade partners. Hotels have sprung up and Juba International Airport is buzzing. Investment is also going into regional airports.
“Any hand trying to lend to us cannot be denied,” says Peter Bior, South Sudan’s information officer.
Masinde agrees: “Government needs partnerships with private industry to builda country.”
Masinde’s team has helped establish a new Ministry of Commerce, Industry and Investment. The former Ministry of Investment has turned into an investment promotion agency. The Ministry of Justice is being used to strengthen the Business Registry.  The government has also instituted numerous Acts ranging from the Investment Promotion Act to the Personal Income Act.
“The business environment is catching up with the other East African countries. Registering a company takes 15 days and this will improve with time,” says Masinde.
<div id="attachment_245" style="width: 310px" class="wp-caption alignleft"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-245" class="size-medium wp-image-245" src="/wp-content/uploads/2017/04/A80N9T-300x200.jpg" alt="" width="300" height="200" />Nile River in Juba, South Sudan</div>
South Sudan is also pushing to diversify its economy away from oil.
Agriculture is one industry that the country is looking to build. South Sudan is 644,000 sq.km, with at least 30 million hectares of arable land. Only 4.5% of this land is working.
South Sudan has formed bad habits—more than 50 years of war has created dependency on food imports and the World Food Programme.
South Sudan imports its fruit, vegetables and poultry from Kenya and Uganda. This raises questions about food security. Refugees flooding back into the country are putting pressure on an already delicate food balance. The country is prone to floods and drought, but with effective planning, maize, millet, cassava, rice and sesame seeds can be grown. There is also potential for sugar.
“We continue to encourage the civil population to utilize their minor skills [in subsistence farming] but we are looking towards larger operators for commercial farming,” says Bior.
Land grabbing has been a problem in South Sudan. This has prompted the government to create a progressive Land Act (2009). With plans to get the primary sector underway and the infrastructure up and running, there is a call for more manufacturing. There is already an increase in light manufacturing like brick making and the construction of doors, gates and frames.
A leading international company that has seen the immense manufacturing potential in South Sudan is SABMiller. It invested $37 million in its Juba operation, Southern Sudan Beverages Ltd. The brewery manufactures beer called White Bull, soft drinks and bottled water. South Sudanese took royalties from the deal. SABMiller received $1 million from the African Enterprise Challenge Fund, a $120 million private sector fund. This, along with
$2 million from the company will be used by FARM-Africa to work with local small-scale farmers who will grow the cassava SABMiller buys to make beer.
“This project will convert what is currently a subsistence crop into a cash crop, creating valuable and sustainable economic opportunities in a fragile region,” says Mark Bowman, managing director of SABMiller Africa.
<div id="attachment_244" style="width: 310px" class="wp-caption alignleft"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-244" class="size-medium wp-image-244" src="/wp-content/uploads/2017/04/White-Bull-Lager-Pack-Shot-300x256.jpg" alt="" width="300" height="256" />White Bull Lager</div>
From land mines, to beer, to the second Garden of Eden—in the words of the marketing men. Tourism is a market that has yet to be tapped. The South Sudanese government took charge and deployed delegations to countries like Zimbabwe, which profit from tourism in adversity.
The country sits alongside the Nile and is rich in wildlife with a history of a large antelope migration. Al Ain Wildlife, an Emirati company, will be constructing, as per its lease agreement, luxury hotels and tented camp resorts within Boma National Park.
With all the possibilities in business, training and skills development, infrastructure, agriculture and tourism, all eyes are on the blank page that is South Sudan.
The country is counting on its acceptance into the Common Market for Eastern and Southern Africa (COMESA); the East African Community (EAC); the African Growth and Opportunities Act (AGOA); and the European Union to help it gain access to key markets. But most importantly, it is counting on the return of its people and their skills.
The people of South Sudan must band together to shape their country into a formidable one. It truly is a new beginning. Happy New Year, South Sudan and good luck—you are going to need it.
<h3>The Oil Question</h3>
The former Sudan’s oil lies in the South, with the distribution network and refineries in the North. This has always meant that the two nations at war with each other shared the oil revenue. With its dependence it would be ideal for the South to take charge of all its resources, but this is a delicate situation as the North also depends on the oil revenue and would not easily allow revenues to dry up.  Soon after its independence, South Sudan was in talks with Kenya to build a new pipeline between the two countries. This could take years to achieve.

Building A Country One Brick And Dollar At A Time

Manu Chandaria is no spring chicken, but he has a spring in his step. The 82-year-old chairman of the Comcraft Group has been on the regional economic radar screen for 10 years through his unflinching support for the East African Community—a common market with a combined population of more than 130 million and a GDP of $75 billion. He
<div id="attachment_240" style="width: 210px" class="wp-caption alignleft"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-240" class="size-medium wp-image-240" src="/wp-content/uploads/2017/04/Manu1-4-200x300.jpg" alt="" width="200" height="300" />Manu Chandaria, Chairman of Comcraft Group</div>
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reasons—like free trade proponents—that pooling populations, skills, expertize and production can create the economies of scale and the huge markets that business craves. There’s even talk of the fledgling state, South Sudan, joining the EAC.
“Politics doesn’t put food on the table,” says Chandaria, touching the raw nerve that threatens the pace of EAC integration. Politics killed the first attempt in 1977, when Kenya’s then president, Jomo Kenyatta, fell out with his Tanzanian counterpart, Julius Nyerere, over whether to adopt capitalist or socialist policies. Chandaria has no such doubts.
“We need to help our people to better their lives. That can only be done if businesses have enough space to grow and expand. That’s how jobs are created, incomes improved and GDPs grown,” he says.
The business community views a robust regional economy as a trigger for productivity, economies of scale and competitiveness. It is a wonder why some Kenyan bureaucrats, legend has it, toasted the collapse of the idea with champagne more than 40 years ago.
The 21st century version of the EAC is fashioned along the lines of the European Union, which has monetary union of 27 member countries and one central bank. The EU is currently battling debt troubles among its key economies, like Greece, Italy and Spain, pushing analysts to speculate that EAC monetary union may mean more of the same trouble in Africa.
Richard Sezibera, the Rwanda-based secretary general of the EAC, says uncertainties created by the financial crisis in the EU—the biggest financier of the protocol in terms of funds and technical assistance—won’t affect the EAC.
“Although the East African Monetary Union (EAMU) has been patterned on the Euro Monetary Union, lessons drawn from the ongoing crisis and also the 2008 world financial crisis will ultimately shape it,” he says.
Chandaria, like Sezibera, is stubbornly optimistic, even if the dream of union remains about as elusive as democracy in some of the East African states.
“We are finding it very difficult,” he says with zeal. “Will it really work? That’s the question we were discussing at our regional forums. People are still Kenyan, Tanzanian or Ugandan. It can’t work like that. We need to get to a level where we are East African first, East African second, East African third and the rest can follow… You have to know your business and how to tackle the differences… Otherwise, you will be killed.”
There are plenty of flies in the ointment. Chandaria says Tanzania wants to be in the Southern Africa Development Community (SADC) and EAC at the same time, while Uganda is fiercely protective of its markets against bigger and ferocious business rivals from Kenya. Kenya and Uganda are in COMESA, from which Tanzania pulled out a few years ago. Not so good for a budding economic bloc.
“It is not working the way we wanted. We are just creating unnecessary jobs for so many people instead of building institutions and teaching the people to get the best out of it, so we can get better GDP,” says Chandaria.
The EAC aims to improve earnings for member countries, but every country differs—politically, legally and culturally—making it hard for companies to operate cross-border businesses.
Even the EAC secretariat acknowledges this. “Following the completion of the ratification of the protocol on the common market, the complex and long march towards transforming the EAC region into a common or single market begins with resolve and fervor,” said EAC secretary general Juma Mwapachu during the launch on July 1, 2010. “It is important to underline the words ‘complex and long march’.”
The process is complex in terms of what is required to be undertaken at the levels of the partner states and in certain respects, at the level of the EAC itself. All five countries have a common external tariff; an identical tax applied to imports from outside the bloc, and they allow duty-free regional trade with the exception of Kenya, the largest and most advanced economy of the five. The common market aims to build on this and enable the free movement of people, capital and services, and abolish import duties.
The EAC’s ambitions go beyond pure economics. The plan is for the common currency in 2012 to set up the groundwork for a political federation by 2020. Yet the other member states worry that Kenya, which is the economic powerhouse of the five, could end up being the dominant player.
It’s easy to understand why Chandaria, the son of a former shop attendant who built the business empire, is so passionate about integration. A Kenyan-born entrepreneur who returned from studies abroad to take charge of the family business, Chandaria has worked in Uganda, Tanzania and Kenya. In the past 50 years, the Chandaria family has transformed a scrappy medium-ranked business into a major global player with some of the most coveted brands, including roofing iron sheets, electronics, software, kitchenware, pots and pans. He won’t give figures about the net worth—the businesses are jealously private—but simple calculation points to a conglomerate worth millions of dollars.
Comcraft has invested in steel rolling, aluminizing, galvanizing, color coating and profiling. The companies include Mabati Rolling Mills Ltd in Kenya, Aluminium Africa Ltd (Alaf Ltd) in Tanzania, Uganda Baati, Safintra Steel in Zambia, Safintra Steel in Mozambique and Safintra Steel in Malawi. The others are Safintra Johannesburg, Safintra Durban, Safintra Cape Town, Safal Steel in Cato Ridge near Durban and Midget Steel in Nigeria. The group also has a presence in the pipe and section manufacturing division in Insteel Ltd in Kenya, Alaf Ltd Tanzania, Uganda Baati and Hoech Pipe in Nigeria.
Chandaria, who steered Mabati Rolling Mills to one of the most successful companies in the Comcraft stable, says success has taken a concerted effort of family, understanding, higher education and vision in entrepreneurship. “It’s basically the principle of joint family,” he says, sipping herbal tea at his palatial home. “Zero multiplied by zero is zero, one multiplied by one is one; until you reach two, where two times two is four, which gives you a base for linear multiplicity of four times four to get sixteen and so on. We decided we want multiplicity.”
That’s his mathematical way of explaining how his family teamed, with his in-laws, to build a business empire—from the pots and pans to iron sheets to manufacturing, electronics and software. Not very many people manage such a feat. This Indian family from Savrashtra, Gurjarat, has proved that blood relations can also build a strong bond for business.
This is a big lesson for African entrepreneurs who often go it alone in business and fizzle out, or at best, start small and remain so. In Kenya, the Indian community dominates businesses: in retail, think Nakumatt Holdings owned by the Atul Shah family; in manufacturing, think edible oil maker Bidco, owned by Vimal Shah, who controls virtually the whole of Kenya’s industrial area portfolio in Nairobi and major towns.
When Manu Chandaria’s illiterate father came to Kenya 96 years ago, he had a simple mission: to earn 4,000 rupees and return to Gurjarat.
<div id="attachment_241" style="width: 310px" class="wp-caption alignleft"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-241" class="size-medium wp-image-241" src="/wp-content/uploads/2017/04/Manu1-23-300x200.jpg" alt="" width="300" height="200" />Chandaria with Aruna, his wife of 56 years</div>
But after a period of super-high growth, almost all the low-hanging fruit is gone. Now the group is left with expanding its existing business lines and scouting for opportunities in emerging sectors like ICT.
Chandaria joined Kaluworks in 1951, alongside his brother, a food technologist, and two other siblings—a civil engineer and campus graduate. Then Kaluworks had 40 workers and a grocery supply business. “We decided that everybody was going to work hard, from Monday to Saturday, and if there was maintenance on Sunday, we worked on Sunday. From 40 people, in five years’ time, we had 500 people. That cooperation planted the seeds of partnership that expanded the workforce to 800 people by 1960.”
Chandaria was sent to Uganda, the only country that was known to be rich in those days. There was a joke in town that Uganda would earn, and Kenya would spend, by selling them products. So he opened an office there and undercut the competition.
The dawn of independence in the early sixties opened new investment opportunities in newly autonomous states, and Comcraft went on a spree. It ventured its iron sheet business in Tanzania (Mabati Ltd), Zambia (Galco), Uganda (Bati Ltd) and Ethiopia (Ethiopian Steel), making it a pan-African business in just five years. “What we knew we duplicated, triplicated, four times, five times…” he says.
The group’s strength is in teamwork and building multiple plants in various markets. This is then boosted by Chandaria’s shrewdness in creating strong and loyal management teams. But he admits the group’s leadership is not always able to attend to difficult situations in time, leading to losses or lost opportunities. The company has also been slow in training enough numbers of management teams for existing and future expansion.
In 1953, Chandaria proposed a charity foundation, but his father initially rejected the idea. “You lived too much in America; we are not Ford Foundation or Chrysler,” said his father.
Today, Chandaria’s foundation is easily the biggest and one of the oldest charity organizations in the country. Some of its notable contributions in Kenya include Chandaria School of Business at United States International University (USIU); Chandaria Business Innovation and Incubation Centre, recently launched at Kenyatta University; and the Chandaria Emergency Centre at Nairobi Hospital, to mention but three. The foundation has done lots in helping the poor, in rebuilding houses and schools of those displaced in the post-election violence, and in educating bright children from poor families.
Philanthropy is the in-thing for the super-rich these days, with US investment guru Warren Buffet urging fellow billionaires to give at least half of their wealth to charity. In most of Africa, it is manifested mainly in corporate social responsibility—planting a tree here or donating a cheque there.
“If you can’t give what you have—experience, knowledge, philosophy,” Chandaria says, “I don’t know what else you can give. I can make a swimming pool of whisky, but I don’t drink. I have compassion for others. I have no hobbies because my game is to serve. I walk in slums and children come to play in my compound.”
As politicians struggle to fit their interests in the East African frame, it is clear that to achieve integration, and urgently so, the region could need more Chandarias.

Tag: Politics

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