For sub-Saharan Africa, the Informal sector is nothing new.  Indeed the types of activities carried out in this sector has existed even prior to colonialism.  Later, independence brought in the distinction between informal Vs. formal activities as countries around the region sought to formalize or “modernize” their economies.  The focus then (and indeed to some degree today) was rapid industrialization for much of the region.  If is the informal sector – not the formal sector – that is the growth engine.  It should be noted that around the world, about two-thirds of all employees work in the informal sector.  Thus how government treat the informal sector has profound impacts on employment, growth, equity and sustainability.

World Bank, 2009

The Informal sector is the part of the economy that is not taxed, organized, through legal but not monitored by the government or included in the GNP.  The informal economy was recognized in 1972, when the International Labour Organization (ILO) began its pioneering work on informality in the African economy with the Kenyan Multi-disciplinary employment missions.  ILO definitions include:

            “… the non-structured sector that has emerged in the urban centres as a result of the modern sector’s inability to absorb new entrants…”

International Labour Organization (1972).

            “… private unincorporated enterprises which produce at least some of their goods and services for sale or barter, has less than 5 paid employees, are not registered, and are engaged in non-agricultural activities including professional or technical services.

International Labour Organization (2002).

            The informal sector is characterized by a larger number of small-scale production and service activities that are individually or family-oriented and use simple labour-intensive technology.  The usually self-employed workers in this sector, have less formal education, are generally unskilled, and lack access to financial capital.  As a result, workers productivity and income tend to be lower in the informal sector than the formal sector.

            Nonetheless, some generalizations can be made about the causes of the informal sector’s growth in recent years include:

·         Bias by African leaders, international development agencies, international financial institutions to execute and support projects in urban areas, create laws and pursue development policies at the detriment of rural areas.

·         Recent migrants from rural areas who are unable to find employment in the formal sector.

·         Structural adjustment policies

·         Difficulty in establishing new firms.

·         Peace and the demobilization of military.

Their motivation is often to obtain sufficient income for survival, relying on their own indigenous resources to create work.  As many household are involved in the income-generating activities, including women and children, and they often work very long hours.  They generally lack public service such as electricity, water, drainage, transportation and educational and health services.  Others are less unfortunate, homeless, living on pavements, work temporarily as day labourers and hawkers under unhealthy weather condition.

            With the unprecedented growth rate of the urban population in developing countries, expected to continue and with the increasing failure of the rural and urban formal sectors to absorb additions to the labour force, more attention is devoted to the role of informal sector in serving as a panacea for the growing unemployment problem.

            The persistence and depth of poverty in Africa, and especially in the sub-Saharan region, appears to be strongly related to both the structure of employment and the very low level of productivity.  It is estimated by the ILO in Geneva, that 48 percent of non-agricultural employment in North Africa, is in the informal economy, and 72 percent in sub-Saharan region.  In rural areas some estimate are that the informal sector accounts for as much as 90 percent of non-agricultural employment.

            “Indeed informal sector employment in Uganda and Kenya now exceeds employment in the formal sector and nearly 90% of the labour force in Ghana comes from the informal sector.  Also many countries have not even collected data on the informal sector.”

African Union, 2008

            All the way from Lagos-Nigeria, to Moncef Bey – Tunisia, el hamiz – Algiers, Harare – Zimbabwe and the famous Derb Ghalef and Derb Omar Markets in Casablanca-Morocco.  Africans have resorted to the opportunities therein in the informal market, which makes breaking out seem to be a major development challenge.

            Zimbabwe, Tanzania and Nigeria have more than half their economies in the informal sector, while South Africa have just 28.4 percent (below the 41 percent average for developing countries world wide, but still more than the 18 percent in developed countries).

            The informal sector entails a loss in budget revenue by reducing taxes and social security contributions paid and therefore the availability of funds to improve infrastructure and other public goods and services.  This invariably leads to a high tax burden on registered labour, and of which the tax burden would be further pushed to consumers in form of high prices of goods and services.

            Finally, if economic growth is not associated with a movement into better employment opportunities or an improvement in the condition of employment in informal activities, the impact on poverty will be minimal.  This issue is central to realizing decent work, as a goal and for all workers, - to achieving the millennium development goals, and to promoting a fair globalization.  Please stay connected for more amazing insights…  Only Africans can save Africa.  Peace!

Obele Gospel Jesuite

CRO – Project Change Initiative

A 21^st Century Leadership, Organizational and Economic Development Strategist

For comments, please visit Obele Jesuite on facebook, @OBELEObele on twitter, gospel_obele@yahoo.com for email: or contact 08130070991.

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Unemployment remains one of the most teething problems in the World. Although, it affects all age groups, its impact on the youth population is particularly vicious. In the past, most young people in Nigeria had easy access to white-collar jobs after their education but it is no longer the case today as the high level of graduate unemployment shows that education is no longer an immunity to unemployment in Nigeria.

GRADUATE UNEMPLOYMENT IN NIGERIA.

Graduate unemployment has assumed an unfortunate dimension in recent times as more graduates are being churned out of our tertiary institutions without having access to jobs. In 2011, the composite unemployment rate for graduates of tertiary institutions stood at 24.6% for first degree graduates, 13.7% for Master’s Degree holders and 17.8% for doctoral graduates (National Planning Commission, 2011). Taking cognizance of the fact that most of the so-called employed graduates are actually under-employed makes the whole picture of graduate unemployment in Nigeria more pathetic.

NIGERIAN GRADUATES AND EMPLOYABILITY SKILLS.

Many people have argued that the high rate of graduate unemployment in Nigeria is not only as a result of the unavailability of jobs but also the fact that most of our graduates lack basic employability skills and are therefore not employable. The unemployability of Nigerian graduates has been blamed on several factors. Chief among these factors is our poor curriculum system which has been criticized for not only lacking in content and quality, but is largely theoretical, stagnant and not tailored to market needs. Other factors usually mentioned include the poor learning environment in our educational institutions, the poorly trained teachers and the poor commitment of students to developing themselves. All these lead to poor learning outcomes amongst graduates and employers are usually very reluctant to commit resources to training and re-training such graduates since they might switch services to a competitor any day.

THE COST OF GRADUATE UNEMPLOYMENT.

The unemployability of Nigerian graduates effectively drains the reputation capital of our economy in general and our educational system in particular. As a matter of fact, the mere notion that our graduates are unemployable puts a question mark on the efficiency of our national expenditure on education and training and the actual benefit of schooling.

Moreover, not only does the problem of graduate unemployability retard the competitiveness of our graduates in the 21^st century global knowledge market, we are incurring very high national productivity losses as a result of the near ‘vegetative’ state of what should actually serve as our high-level manpower.

In the same vein, as the unemployability problem increases the rate of graduate unemployment; it poses a risk to the stability of society when these graduates resort to anti-social and criminal behavior to ‘help’ themselves. 

     

     IMPROVING ON THE EMPLOYABILITY OF NIGERIAN GRADUATES

The high cost associated with graduate unemployability makes it imperative for measures to be taken   to improve the employability of our graduates. There should not only be increased funding of             education across all levels to improve the learning environment and the quality of teachers (by way of training and re-training), measures should be put in place to overhaul our curriculum system  to not only reflect dynamism but focus on market needs and emphasize entrepreneurship

The Students Industrial Work Experience Scheme (SIWES) in our tertiary institutions should be overhauled to work better and should be extended to all fields of study to enable all students have a first-hand experience of how their industry works and know what skills are required to function effectively in such industries. The SURE-P Graduate Internship Scheme (GIS), a scheme which is like a stop-gap measure to improve the employability skills of existing graduates should be expanded to cover more grounds. Most importantly, students themselves should be committed to personal development by expending their resources on commercial and marketable skills and not on frivolities and a lot needs to be done to enlighten them in this regard.

Since the unemployability of Nigerian graduates effectively drains the reputation capital     of our economy in general and our educational system in particular, all hands must therefore be on deck to work towards repositioning our educational system to produce graduates that can compete effectively in the 21^st century global knowledge market.

Daniel Chimezie is a Research and Financial Analyst, Author and Social Commentator.

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Columnist: Iyeomoan Emmanuel

At a time like this when it seems like “the center can no longer hold” as the glue that bonds us together as a people is loosing its grip and “things are falling apart”, many a political thinkers believe that a National Conference is never too late a time like this.  History is rich with meetings of this magnitude, not in the caliber of prominent public figures that acted on the stage, but in the errors and blunders of past conglomeration of ideas on the national table.

In this first edition of the series on the National Confab, Polity Police observe with clarity of purpose, some salient issues to be addressed; challenges to be faced and anticipated credits to be gained from a national conference of this nature. For content’s sake, let’s concentrate our energies on the salient issues that will draw the collective attention of Nigerians, in the course of the national conference.

SALIENT ISSUES ON THE NATIONAL TABLE

It’ll be nonchalance on our paths to shut our eyes to realities, and negate the wind of change that is about to blow the Nation to its near-eldorado. Before we envision reaping the fruits of a national get-together, conscience-searching questions geared towards placing us on the right direction of change must be asked. Progressively, answers to these questions must be offered with respect to: where we were before; where we are now; and where we intend to be after the conference? Having conducted an online poll on the social media, Facebook to be precise, the afore-stated “conscience-searching questions” are presented in no particular order here-under as follows:

• What were the results of past conferences of this nature?
• What were the demands of citizens of the country at those times and what are their demands now?
• Would a national conference procure curative measures to the maladies eating the nation’s health? Has it ever resolved issues in the past?
• What are the costs and benefits to society of this national conference?
• Why should it be a national conference, and not a sovereign national conference?
• What happens to Nigeria if a breakdown occurs in the process of national conferencing?

The Polity Police as well as other public affairs analysts anticipate probable success on this matter that has, and is still trailing the polity (National Confab). We expect partial success outcomes on the basis of a negation of salient issues of national interests. These issues must, and should be tackled headlong before the ship of a successful national conference is set to sail. They include, and yet are not limited to:

• Deteriorated state of the education sector
• Heated polity ahead of a pregnant 2015 general election
• Poverty in the midst of resource-surplus
• Unemployment in the presence of massive capital flight
• Population issues and its surrounding problems

Deteriorated state of the education sector: Aggrieved quarters (undergraduate and lecturers) sneer at the drama of a proposed national conference by the Jonathan-led administration, tagging it a “dance of shame”. If we are objective enough in our judgments, we can’t but agree that the education sector has reached its boiling point. Our institutions of higher learning which were initially set-up for research and development, have been reduced to a state akin to livestock-pens; laboratories are as empty as caskets, without basic facilities and chemicals necessary for experiments; lecture theaters are like town-halls, that you could count the few available seats; students hang on windows like bus-conductors, just to receive lectures that sometimes span for hours. Furthermore, our libraries are archaic and hive a crop of outdated intellectual properties; hostels are unavailable or insufficient, and where they are available, are worse than Nigerian prisons (you know how our prisons look). Ultimately and most painfully, the academic calendar is stylishly truncated by incessant and concurrent seizures in the form of labour strikes- courtesy of government insincerity in meeting up her obligations.

Heated polity ahead of a pregnant 2015 general election: Many wonder why the polity is unnecessarily heated by power-hungry and greedy politicians, when the 2015 general election is still pregnant; though, we can predict what the outcomes will be.  It is unsurprising to expect that most of our elder statesmen who are expected too act as glue to uniting the diverse interests of Nigerians, are at the forefront of this shameful act. Isn’t it needful to repair these broken edges of our walls before thinking of a national conference? Why don’t we organize a conference of elder statesmen to settle their differences before lowering this boat called “National Confab”?

Poverty in the midst of resource-surplus: How can we be talking of a national conference when the stomach of the common man is empty? Are they going to seat on the national table of resolution with hungry-looking eyes? Or, probably, they will be cut out of the scheme of things by inequitable representation. Their interests will be represented, or better still, misrepresented by the over-satisfied few, who do not know how it feels to be hungry. It’s an irony that the gap between the haves and have-nots widens with successive increase in the GDP- this is not funny at all!

Unemployment in the presence of massive capital flight: Many employers of labour argue that the problem of unemployment in the country isn’t unavailability of jobs, but unemployability of job seekers. I fail to accept that cheap claim owing to the fact that present day youths and prospective job-seekers are more intelligent than those of the 60s, 70s and 80s (the youthful times of our fathers) respectively. It amazes me that most of the big government employees, who preach “unemployability of this generation” are half baked intellectuals. The media can support my claim with many incidences of multiple errors in communication and lack-lustre presentation of ideas by the so-called government big-boys (the public servants). For instance, the “oga at the top saga” on Channels TV is still fresh on our minds; the grammatical blunders of the president’s wife, who was at one time the controversial head of service of Bayelsa State; the most recent is the Anambra governorship debates aired by African Independent Television (AIT) on 31^st October 2013, and the Abia national conference forum, where working-class citizens couldn’t communicate their ideas to the public without reading unending manuscripts, even when time was allotted to them on that regard. Or is it in Edo state, where a government employed head-teacher couldn’t spell her name in the presence of the Comrade-Governor? Let’s tell ourselves the truth and stop living in deceit. With this revelation, what are the reasons for high unemployment statistics, if not bad government policies as well as capital flight? Money that would have been invested here in the country are transported to foreign lands and imprisoned in their banks. Our leaders should tell themselves the truth- that they are the cause of our problems and not the harmless youths who are out there to better their lots. We complain of unemployment, yet public officials buy private jets, armored cars, and build sophisticated houses. Come to think of it, majority of the masses have no rooftops to hide their baldness, yet all governors have private lodges in Abuja; they are virtually 35 governors lodge in the FCT. What message are they sending to the youths? Why won’t they (the frustrated youths) take to crime to better their lot, when our fathers (the politicians) disappoint them with their reckless spending? Much is left for another day.

Population issues and other surrounding problems: Last month, the NPC’s boss resigned from service after some months of his appointment without any important reason. It was a true test of integrity and is rather un-nigerian to remove one’s tongue from a honey-pot, but he did and posterity must remember Francis Odimegwu for that. After analyzing the circumstances surrounding is resignation, I gathered that population issues are more political than I envisaged. The 2006 national census was marred by irregularities in the figures, which alone was enough to break the country. Many states had their figures over-stated, with expectation of higher shares from the national treasury. How can we grow in the midst of these insincerities?

The polity police have sufficiently touched some of the salient issues that must be put before the cart, for an effective national conference. We continue this series next time by treating challenges to be faced. Watch out for part 2!

© IYEOMOAN EMMANUEL,

UNIVERSITY OF BENIN, NIGERIA.

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          A story was once told of a Jewish man who spotted a swampy area in a part of Lagos Nigeria.  He made a move for its purchase and the owners (Nigerians) laughed at him saying “can anything good come out of this”, that why would such a man indicate interest to purchase a swampy land.  After all said and done the land was sold at a give away price.  That same land was developed and today, it’s what is popularly referred to as Victoria Garden City.

          It is not just large companies that are finding opportunities in Africa, but also visionary entrepreneurs.  Success has been the testimony with the likes of Innscor, who leveraged on the poor socio-economic state of Zimbabwe and has successfully built conglomerates.  Bidco in Kenya has created an oil business with more than $160 million turnover, while building over 51 percent market share in Kenya, and the company exports oil, detergents and other products to more than a dozen African countries.  Bill Lynch, CEO of South Africa’s Imperial Holdings transport group, with annual turnover of $6.2billion, was born in rural Ireland.  Lynch was named Ernst and Young world Entrepreneur in 2006, He told the Financial Times in 2006, “if South Africa grows at the expected rate of 6percent, his business should grow at 15 – 20 percent over the next few years.

          As previously noted, Asian governments and companies have recognized the opportunities in Africa, as Chinese merchants and products are evident across Africa, from low-cost televisions, to generators, clothing, shoes and other appliances.  Jincheng motorcycles race across the roads and in Nigeria.  Indian and Pakistan traders sell leather, clothing etc in Johannesburg South Africa.  The same is being repeated in Algeria, Tunisia, Egypt, etc.

          “The growing African trade and investment by China and India, particularly in sub-Saharan countries, is one of the most significant features of recent developments in the global economy”.

Harry Broadman

World Bank Economist

          A sino-African Summit in 2006, brought representatives of virtually all African countries to Beijing, China, where she pledged $5 billion in loans and credits to Africa during the summit.  The same was duplicated in New Delhi, India, in an organized India – Africa summit in 2008, which brought about the set up of major companies like Tata, Mahindra, Kirloskar and Ranbaxyin Africa.

          We have been known to be a consumption economy, thereby managing depreciation, without a steady increase in production.  The real sector has been seen to be a major driver of growth, and whose opportunities can be leveraged upon for poverty reduction, unemployment reduction etc.  A few Nigerians are actively involved in productive activities while some lack the touch of excellence, others are not appreciated by the market.  Findings reveal that Nigerians prefer the purchase of foreign items compare to locally made goods. As we continue on this track, we would experience increased capital flights, where foreigners invade our markets, employ Nigerians to seat in offices and work under unhealthy weather conditions, make their money and repatriate these funds to their home country, at the expense of the growth of the Nigerian real sector, which is spurred by poor discretionary policy measures. Please ponder on these things, as we continue next week under the same discourse.  Have a great week ahead.

Obele Gospel Jesuite

CRO-Project Change Initiative

A 21^st Century Leadership, Organizational and Economic Development Strategist

For Comment, please visit Obele Jesuite on Facebook,

@ OBELEObele on twitter, Gospel_Obele@yahoo.com for emails,

or contact 08130070991.

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Columnist: Iyeomoan Emmanuel

In this maiden edition of the “POLITY POLICE”, let us together address some contemporary political issues that affect the economy and bring to light the forces of darkness militating against sustainable development in third world countries; Nigeria in particular. “For every aspiring-to-thrive nation, marriage between the economy and the polity must be blissful; a divorce of opinions between these two would mean a disintegration of growth-interests”. Any “aspiring to grow economy” can do so only in a system of administration and distribution having appropriate checks and balances.
The economic “big wigs” in this epoch of information; the US, Great Britain, France, Switzerland, and a few others, are at the fore-front due to the watchful eyes and critical minds of the populace. Thus, our contribution to political cum economic discourse determines the pace with which the economy grows. The growth of every modern economy like Singapore, Malaysia, Brazil, to mention but a few,  are evident from the contributions of individual Small and Medium Enterprises (SMEs); Corporate bodies (the private sector) and the government (in terms of creating the enabling environment). I observed that the contribution of the government is infinitesimal relative to the private sector. That notwithstanding, provision of basic amenities like electricity, water and housing by the government, are the motivators to economic vibrancy of the public sector; Nigeria should borrow a leaf from that. On that respect, “policing the polity is the surest-bet to securing economic harmony” in a country with divergent interest groups with diversified demands. Painstakingly, this article is tagged “irresponsive polity in a responsive economy”, as I bring to bare the nonchalant behaviour of actors in the polity that repel economic growth.
REDUNDANT HEALTH IN THE FACE OF ABUNDANT WEALTH
Third World countries will continue to grow retrogressively even in the face of “myriads of natural and human resources”, so long as there exist barricades to economic growth. I call problems- barricades, because I believe that they are propellants to growth. These “barricades to economic growth” are multifarious in nature and ubiquitous in our socio-political and economic terrain; vis-à-vis:
• Information secrecy: Many a public analysts will agree with me that the passage of the Freedom of Information (FOI) bill is a camouflage; and illusion from reality. How many political officials openly declare their financial worth, on assumption of office? Can an ordinary Nigerian walk into the Chief Statisticians office, or the Auditor-general’s, to gather information pertaining to the real state of the economy? All we see are media propaganda that gives a wrong impression on the health of the economy.
• Socio-political cum economic illiteracy: It is no news that Nigerians are becoming aware of happenings in the political sphere. Conversely, if you conduct a referendum, you’ll be shocked to know that majority of the youths (“would-be leaders” of tomorrow, which never comes) are ignorant of the devices of government mal-administrators and policy makers. During the “subsidy protest” in Lagos, I asked a handful of youths clustered around the Oshodi area of Lagos if they know the meaning of “subsidies or deregulation” and to my displeasure, I got a “no we don’t” answer for a reply. What a pity!
• Bureaucratic Insincerity: Due to the prevailing level of information secrecy, government officials pervert their political offices and get away with it; only those who refuse to play to the gallery of the “shadow godfathers” are probed and found wanting; James Ibori, the former Governor of Delta State is a case-study. For instance, we can remember the not too long cases of persons robbing the government and bailing themselves by settling an arm of the government; the judiciary to be precise. The bureaucratic nature of the civil service is another pain in the neck, as insincerity is brought to the fore on a daily basis. For example, a lump-sum meant to be distributed to some quarters, say, the local councils, pensioners and contractors, may loose the value of its zeros as it is transferred from one location to another. What can we say to all of these?
The Nigeria we are in today is just a mere delusion; a proper makeshift and a deviation from the master-plan of our founding fathers, who acted true federalism on the stage of economic abundance as we still have it today. Our resources are normally distributed, though there are some random disturbances to our growth model, which can be traced and treated with care.
Presently, the economy is caught in a web and the future looks bleak due to weak political and economic institutions and untreated issues of national concern; namely:
• Insecurity: Insecurity is a direct foe of investment and an indirect enemy of economic growth; it affects the GDP on a negative scale. The alarming state of insecurity in Nigeria is a topic on its own that this article is insufficient to expedite action on; that’s a topic for another day.
• Unstable supply of basic amenities:  The economy stagnates due to the insensitivity and insincerity of government to providing basic and essential amenities, which have a direct effect on economic growth. Thanks to the September 30 handover of ownership and distribution of electricity to the private sector; though, with unpaid remuneration of “to be laid-off staff” of the Power Holding Company of Nigeria (PHCN), which is an issue that may shake the foundations of the polity sooner than expected. Like every Oliver Twist and as the “oracle of the masses”, I say- ‘it is not enough to deregulate the power-sector without creating alternative jobs to laid-off workers”. Other sectors like the Petroleum sector still need then ever-ready helping hands of the private sector (deregulate at least, the downstream sub-sector of the petroleum industry). The reason why government would grin at deregulation of the petroleum sector boils down to greed. One the fastest means of lifting an economy from the dungeons of poverty is by government provision of essential amenities to the masses. The cost of doing business in Nigeria is fueling a generator, which is capital intensive. How can we grow in the face of these easy to be solved problems? Is the provision of basic amenities the citizens’ rights, or are they privileges enjoyed relative to their paid loyalty to the government of the day in terms of votes during elections? We all know the truth; let’s not shy away from it.
• Inconsistency of government policies: Since there is no friend in business and no permanent friend or enemy in Nigeria politics, policies are bound to change with each change in government. Uncompleted projects of previous governments will remain so with the inauguration of a new administration. We all know that the Yaradua’s 7-point agenda was replaced by the transformation agenda of the present administration. The next administration’s “agenda” is like a pregnant woman- we don’t know the name and form it will take; it may be a “national-restructuring agenda”. The government is dexterous when it comes to conning audibly-appealing acronyms and names for an agenda. How “sure” is “SURE-P” (Subsidy Reinvestment and Empowerment Programme? The shocking thing is that policies are changed, even when the same political party still controls power. What an ambiguity!
THE WAY FORWARD
Since the problem of the country is multi-faceted and thus, can’t be treated with a single blow, I make this clarion call to all Nigerians to stock themselves with information necessary to improving their lots in particular, and the nation én-large. The only way out of this cobweb-trap is personal capacity development. We can’t be waiting for an irresponsive government to put food on our tables. The Bible and Qu'ran posit that, “whatsoever your find your hands to do, do it with all thy might…” lets stop waiting for the government to tar the roads, build the bridges or give us pipe borne water, when we are uncultured. A defunct governor of Edo-state, Samuel Ogbemudia puts it this way; ‘if the government tar the roads and fail to tamed the persons that will ply the roads, the roads will be destroyed in a short-time, but if the government train the minds of the masses, they may end up building the roads themselves’. What a powerful quote! You all will agree with him.

Polity Police is your economic-watchdog of the polity and unravels the hidden secrets of government which are anti-growth. Remember, Nigeria was not built in a day and cannott be destroyed effortlessly. Together, we shall collectively build a virile economy, a steady polity and a better Nigeria anchored on sincerity of purpose and truth. In this regard, your comments and suggestions are anticipated and will be treated with umpteen confidentiality, if you so desire.
Thanks for your shared time.

© IYEOMOAN EMMANUEL EHIZOGIE
DEPARTMENT OF ECONOMICS AND STATISTICS,
UNIVERSITY OF BENIN, NIGERIA.

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Africa has more than 900 million consumers. Despite the challenges, every day they need to eat. They need clean water. They need shelter, Clothing and medicine. They want cell phones, bicycles, companies, automobiles and education for their children. Businesses are already seizing these opportunities to build markets across Africa.

New York Times, May 2006.

We are in a time and age where we are dealing with Nations that are major competitors for emerging economies that lack wisdom and many developing countries that have not articulated their own position of what they are seeking for. The resources of our Nation have been placed in our Nation, for the prosperity and upliftment of our people.

          Unfortunately, Africa though covering about 15% of the earth surface and two third of the world population with an estimate of 900million consumers, may be slipping into another brand of colonialism with its growing bilateral ties with china, dominating presence of European and American companies, increasing incursion of Indian firms and host of others. Trade between china and Africa is reputed to have increased more than six-fold during the past decade, rising to a record of $120bn in 2011.

The Chinese have not hidden their interest in Africa’s natural resources and seem to be putting their money where their mouth is by investing huge sums in Africa’s infrastructure. Roads and bridges are being built by Chinese firms at a good pace across the continent. From Liberia to Zimbabwe, Ethiopia to Sudan, Nigeria to Niger and Egypt. The Chinese have entered into business partnerships to increase their stand in Africa. Surprisingly, a substantial part of the manpower and material used for the project are imported from china. Beijing’s penchant for maintaining strict business relationships has endeared them to most Africa’s remaining dictators.

“It is clear to us that any global firm interested in growth must see Africa as an essential part of its portfolio”. 

E. Neville Isdell,

 Chairman and CEO , The Cola Cola Company USA.

Other companies are stepping up their presence in Africa. Unilever, facing increased competition and declining profits in the united states and Europe (where sales growth fell from 5 percent in 1998 to 0.7 percent in 2004), announced plans to step up its business in the developing world, including Africa, where it is already firmly established. Nestle caught between forecasts of growth of only 1.5 percent annually in developed market and its target of 5 percent to 6 percent organic growth, announced plans in 2006 to step up operations in west Africa and other developing markets to make up the difference

The Coca–Cola company which has been in Africa since 1928, has seen its business on the continent increase steadily over the past two decades, despite the ups and downs of individual countries. The company now sells 93 million servings of its beverages every day across Africa, generating about $4 - $5billion in system revenues for the company. As a sign of its development, in June 2007, Coca-Cola relocated its African headquarters from Windsor, United Kingdom to Johannesburg, South Africa.

“I believe that our business in Africa should be managed locally, by Coca-Cola associates who live and breathe the continent. Johannesburg is an ideal location for our new office since it has excellent business infrastructure network with the rest of the continent.”  

Muhtar kent

President and Chief Operating Officer, Coca-Cola Company

                                                                  

“On a per-unit basis, Africa is the third most profitable market in the world.

The African market is quite attractive for the company and for most multinationals if they look at it with the right lens. Most people only see the negatives of Africa. You have to get beyond the perception to see the opportunities. We estimate that 350 million to 500 million people would potentially be market for our products. That’s a lot of people. The returns in Africa are as good as, or better than, they are in a lot of BRIC countries (Brazil, Russia, India and China) in the medium and short term. And the African market is not as competitive as BRIC countries. We have a significant opportunity to shape beverages in Africa and see the results.”

Alex Cummings

 President, Africa Group of the Coca-Cola company.

I leave us this week with a question. Can only Africans save Africa? Cheers!

Obele Gospel Jesuite

CRO- Project Change Initiative 

          A 21^st century leadership, organizational and economic development strategist.

For comment, please visit Obele Jesuite on facebook, @OBELEObele, on twitter to Gospel _ obele@yahoo.com, or contact  08130070991. 

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Happy Independence Nigeria! I begin this week by telling us a story.

On a certain day, a friend and I visited a teaching hospital. As we approached the maternity ward, we met a young woman, whom the nurse told us could not be discharged due to inability to pay her hospital bill. As if that was not enough,  we saw her new born baby, lying on an old carton on the ground with the woman’s wrapper spread beside the baby serving as her “mattress.” Looking at this experience and thinking through, tears filled my eyes, as only the creator knows who that baby is destined to be. By privilege, we had to do the little we could to help the situation

Further findings have revealed that:

·         About 2500 children under age 5 in Africa die on a daily basis due to malaria

·         By estimates, 250 deaths out of 1000 birth are recorded due to poor maternal health.

·         Over 70% of Nigerians live below the poverty line.

·         Economic growth in Nigeria has not translated to improved standard  of living but rather increasing costs of living, unstable macroeconomic environment, unfavorable discretionary policies, bad political and socio-economic structures, poor educational system, business failures, unemployment and youth restiveness, etc has been the order of the day. Obviously, what we see and experience are not consistent with the core values of development (sustenance, self esteem and freedom from servitude) and the objectives of development (to increase the ability and widen the distribution of basic life sustaining goods, to raise standard of living and to expand the range of economic and social choices).

The big question is where and how do we change the game plan?.

              “What lies behind us and what lies ahead of us are little matters compared with what lies within us”

                                                                        Oliver Wendell Holmes.

“The eyes that look are many, but the eyes that see are few”

The spot for change lies in our hearts, and this can only be possible when we begin to see (with the eyes of our heart) and  create the Nigeria of our dream.

“The creation of a new Nigeria must begin with a New vision”

                                                                                                Sam Adeyemi

The moment we begin to see and hold consistently, the new Nigeria dream in our hearts, it would

·         become the basis for which  internal motivation comes  for personal and national transformation.

·         become the basis for socio-economic, and political decisions making process.

·          aid clear individual and National direction.

·         It would aid cultural revolution .

“Every generation has problems and challenges, which makes that generation specially assigned to solve its problems. Refusal to solve or being ignorant about these problems would rob generations to come, the privilege they should enjoy”.

                                                                                      Obele Gospel Jesuite.

The challenges inherent in our societies are opportunities  for us to innovate and make our marks in history. Think about it!

I encourage you to please find your place in the nation. You were designed to solve a problem. You have abilities that you have not discovered and you can do more than you think.  It’s our season of change. Change agents are known for;

v  Having a good sense of purpose

v  Deploying their talents

v  A genuine passion for change.

v  They are full of insight

v  Being Good communicators

v  Success

Let’s come together and work towards a new Nigeria, where 

v  The core value and objectives of development would be natural to our system.

v  The average citizen would not have to worry about what to eat even if he or she is temporarily out of work.

v  Where there will be quality of health care, sound education system, uninterrupted power supply.

v  Strong and lasting political and socio-economic structure etc.

Lastly, I urge us to please visit for more on the Nigeria dream. Together, we will succeed!

                                                      Obele Gospel Jesuite

CRO-Project Change Initiative

A 21^st Century Leadership

Organizational and economic development strategist

For comment, please visit Obele Jesuite on Facebook or @Obeleobele on twitter and contact how at Gospel_obele@yahoo.com, on 08130070991.

Happy independence and have a great week ahead!

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