THE STATE OF AFRICA: AN EMERGING ERA OF ECONOMIC COLONIALISM (1)
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 21st 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.
