Doing Business in Africa: What We Can Learn from Obama's Ghana Speech
Lauri Edwina Elliott
July 17, 2009
Obama spoke at the Ghanaian Parliament this past week during his first trip to Sub-Saharan Africa as President. He used this forum to imprint his administrationīs perspectives and priorities for U.S. Africa relations. While some people may argue motives behind the words and the accuracy of statements, the speech does reveal a needed paradigm shift with how the world does business with Africa. Letīs consider the following points.
First, interact with Africa with purpose. In choosing Ghana, Obama highlighted an African nation striving for values complementary to the United States, and one which his administration would support through its foreign assistance framework. Having purpose provides focus, allowing the placement of assets and resources where they will provide strategic benefit.
Second, be a partner to Africa instead of a patron. Much of the world still patronizes Africa. Yet, there are over 50 sovereign states in which business is conducted every day. As partners with Africans, we recognize that Africans drive and are responsible for their own destiny. Such partnerships would, as Obama said, "be grounded in mutual responsibility and mutual respect."
Third, recognize Africa as a serious player in the global economy instead of as a bystander. Obama put it this way, "This is the simple truth of a time when the boundaries between people are overwhelmed by our connections. Your prosperity can expand America's prosperity. Your health and security can contribute to the world's health and security. And the strength of your democracy can help advance human rights for people everywhere." In a nutshell, what happens in Africa affects the world. What happens across the globe affects Africa.
Fourth, see the prosperity that exists in Africa. As noted in both Time and Harvard Business Review, doing business and investing in Africa are amongst the best ideas for 2009. In fact, Africa has provided better returns on investment than other global regions in the last several years. This year, the Economist predicts that seven out of the top ten fastest growing economies will be in Africa. These include Malawi, Angola, Ethiopia, Congo Brazzaville, Djibouti, Tanzania and Gambia.
Obama also sees this prosperity extending to the broader African society - a key to eliminating poverty. He said, "With better governance, I have no doubt that Africa holds the promise of a broader base of prosperity. Witness the extraordinary success of Africans in my country, America. They're doing very well. So they've got the talent, they've got the entrepreneurial spirit. The question is, how do we make sure that they're succeeding here in their home countries? The continent is rich in natural resources. And from cell phone entrepreneurs to small farmers, Africans have shown the capacity and commitment to create their own opportunities." In essence, Africa is a place of prosperity instead of poverty with the right frameworks in place.
Fifth, strive for trade and investment over aid. The Year 2006 was a turning point. The amount of funds pouring into Africa for trade and investment exceeded the amount for aid for the first time in the continentīs history. Obama indicates an understanding that more trade will benefit both Africa and America, "Now, America can also do more to promote trade and investment. Wealthy nations must open our doors to goods and services from Africa in a meaningful way. That will be a commitment of my administration. And where there is good governance, we can broaden prosperity through public-private partnerships that invest in better roads and electricity; capacity-building that trains people to grow a business; financial services that reach not just the cities but also the poor and rural areas. This is also in our own interests -- for if people are lifted out of poverty and wealth is created in Africa, guess what? New markets will open up for our own goods. So it's good for both." There is only so much that the old cycle of aid can do. Trade opens the door for growth.
Sixth, adapt process and protocol to the African context. Obama is known for his use of social media to connect with U.S. citizens. However, the landscape for media in Africa is different. Recognizing this, the Obama team incorporated a radio broadcast, simulcast the speech to U.S. embassies across the African continent, delivered highlights of his speech via SMS, and used the popular African social media platform, MXIT, to interact with Africans.
And finally, all parties need to learn from the past but not live in the past. While Africa has experienced trouble in the last century, Kofi Annan said at the recent World Economic Forum on Africa that "Africa has transformed in my lifetime and the progress reached so far is proof that concrete achievements are possible amidst adversity."
But even with this progress, many know that Africa still has not fulfilled its promise. Obama re-ignites the hope held in this promise when he said, "So I believe that this moment is just as promising for Ghana and for Africa as the moment when my father came of age and new nations were being born. This is a new moment of great promise. Only this time, we've learned that it will not be giants like Nkrumah and Kenyatta who will determine Africa's future. Instead, it will be you - the men and women in Ghana's parliament (and) the people you represent. It will be the young people brimming with talent and energy and hope who can claim the future that so many in previous generations never realized."
This crucial time in global history provides an opportunity for the world to re-adjust its dealings with Africa, so we can get down to business in order to do business. Business that will promote both national and global stability and prosperity.
First, interact with Africa with purpose. In choosing Ghana, Obama highlighted an African nation striving for values complementary to the United States, and one which his administration would support through its foreign assistance framework. Having purpose provides focus, allowing the placement of assets and resources where they will provide strategic benefit.
Second, be a partner to Africa instead of a patron. Much of the world still patronizes Africa. Yet, there are over 50 sovereign states in which business is conducted every day. As partners with Africans, we recognize that Africans drive and are responsible for their own destiny. Such partnerships would, as Obama said, "be grounded in mutual responsibility and mutual respect."
Third, recognize Africa as a serious player in the global economy instead of as a bystander. Obama put it this way, "This is the simple truth of a time when the boundaries between people are overwhelmed by our connections. Your prosperity can expand America's prosperity. Your health and security can contribute to the world's health and security. And the strength of your democracy can help advance human rights for people everywhere." In a nutshell, what happens in Africa affects the world. What happens across the globe affects Africa.
Fourth, see the prosperity that exists in Africa. As noted in both Time and Harvard Business Review, doing business and investing in Africa are amongst the best ideas for 2009. In fact, Africa has provided better returns on investment than other global regions in the last several years. This year, the Economist predicts that seven out of the top ten fastest growing economies will be in Africa. These include Malawi, Angola, Ethiopia, Congo Brazzaville, Djibouti, Tanzania and Gambia.
Obama also sees this prosperity extending to the broader African society - a key to eliminating poverty. He said, "With better governance, I have no doubt that Africa holds the promise of a broader base of prosperity. Witness the extraordinary success of Africans in my country, America. They're doing very well. So they've got the talent, they've got the entrepreneurial spirit. The question is, how do we make sure that they're succeeding here in their home countries? The continent is rich in natural resources. And from cell phone entrepreneurs to small farmers, Africans have shown the capacity and commitment to create their own opportunities." In essence, Africa is a place of prosperity instead of poverty with the right frameworks in place.
Fifth, strive for trade and investment over aid. The Year 2006 was a turning point. The amount of funds pouring into Africa for trade and investment exceeded the amount for aid for the first time in the continentīs history. Obama indicates an understanding that more trade will benefit both Africa and America, "Now, America can also do more to promote trade and investment. Wealthy nations must open our doors to goods and services from Africa in a meaningful way. That will be a commitment of my administration. And where there is good governance, we can broaden prosperity through public-private partnerships that invest in better roads and electricity; capacity-building that trains people to grow a business; financial services that reach not just the cities but also the poor and rural areas. This is also in our own interests -- for if people are lifted out of poverty and wealth is created in Africa, guess what? New markets will open up for our own goods. So it's good for both." There is only so much that the old cycle of aid can do. Trade opens the door for growth.
Sixth, adapt process and protocol to the African context. Obama is known for his use of social media to connect with U.S. citizens. However, the landscape for media in Africa is different. Recognizing this, the Obama team incorporated a radio broadcast, simulcast the speech to U.S. embassies across the African continent, delivered highlights of his speech via SMS, and used the popular African social media platform, MXIT, to interact with Africans.
And finally, all parties need to learn from the past but not live in the past. While Africa has experienced trouble in the last century, Kofi Annan said at the recent World Economic Forum on Africa that "Africa has transformed in my lifetime and the progress reached so far is proof that concrete achievements are possible amidst adversity."
But even with this progress, many know that Africa still has not fulfilled its promise. Obama re-ignites the hope held in this promise when he said, "So I believe that this moment is just as promising for Ghana and for Africa as the moment when my father came of age and new nations were being born. This is a new moment of great promise. Only this time, we've learned that it will not be giants like Nkrumah and Kenyatta who will determine Africa's future. Instead, it will be you - the men and women in Ghana's parliament (and) the people you represent. It will be the young people brimming with talent and energy and hope who can claim the future that so many in previous generations never realized."
This crucial time in global history provides an opportunity for the world to re-adjust its dealings with Africa, so we can get down to business in order to do business. Business that will promote both national and global stability and prosperity.
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