Workshop 4: Intra-Regional Entrepreneurship and Trade
/GES 2015 in Nairobi
Workshop 4: Intra-Regional Entrepreneurship and Trade
Saturday, July 25, 2015
Number of participants – 25
Moderator – Solomon Asamwa – Vice President Africa Development Bank
Challenges
• There is minimal trade between African countries
• Moving personnel and talent across Africa countries is a challenge as it is not supported by most countries
• It is more difficult for an African to work in another African country than for expatriates from other continents
• There are immense infrastructural challenges—most of the rail transport system was set up during colonial times for extractive reasons
• There is excessive focus on foreign direct investment (FDI) than encouraging domestic investment by the locals in African countries
• Huge resources are required to maintain or improve Africa’s gross domestic product (GDP)
• Corruption remains a big problem in Africa
• Unreliable policies and neglect- the case of all customs operations closing down in Nigeria during Christmas without prior warning to businesses
• High cost of shipping
• Lack of intra-regional infrastructure
• Lack of African shipping lines
• High-cost of transferring money between countries
• Sovereignty is sometimes an impediment to trade
• Lack of patenting African innovations – case of MPESA not being able to benefit from other companies/ countries that utilize the innovation
• Stereotyping – case of Nigerians being considered con-people
• Visa issuance across African countries is problematic—case of an American getting visa at Kenyan airport yet other Africans have to secure it in advance
Opportunities
• The Global Business Angel Network offers a huge opportunity for start-up businesses
• Intra-regional trade creates internal markets
• African countries need to make it easy to move goods and services across borders
• In 2050, majority of the world’s young people will be in Africa
• African countries needs to consider promoting FDI but also look at local and regional investors as an opportunity
• Partnerships with all parts of the society is required to achieve progress in Africa
• Electricity requirements across African borders will continue to grow
• Small businesses are the backbone for growth
• Banks are averse to start-up businesses. Start-ups need Angel investors to demonstrate the business opportunity
• Mentorship and networking hand-holding are a big plus under the Angel financing package
• The new Africa Angel network is a huge opportunity for Africa
• National business Angel networks are important in attracting investment from abroad
• Large corporations to train small companies especially in mining
• Improve infrastructure
• Increase flights across African countries
• The European E-zone may be a good opportunity to set up an African A-zone
• Improve internet connectivity
Outcomes or conclusions
• Do we need 54 steel plants in Africa? Maybe not, but we need open borders for trade to happen across countries
• Large corporations need to work with small businesses---Riontinto (sp) works with small local organizations to provide earth moving services in their mining operations
• Encourage intra-Africa labor movement
• Improve communication between African countries than focus on the west and east
• “Invention” was important in the 60s’ but today “Innovation” is critical
• The world requires entrepreneurs to bring ideas to the market.
• There are many thinkers but very few take the ideas to the next level
• Governments need to collaborate with Angels in order to get a bigger return on their seed money investments into small businesses
• Angels are good for Africa too, and intra-regional Angel networks are important
Resolutions
• Resolved to undertake “Ease of Doing Business” assessment for regional countries. During the discussion a US entrepreneur offered to donate a team of IT designers to support in the analysis
• Africans need to invest in their own entrepreneurial projects
• Focus on educating the west about Africa—tell the good story; talk to the positive