The 'new generation of African entrepreneurs

Networking to Change the Climate for Business and Private Sector-Led Development

Bibliographic Data

ID5778021
AuthorsBarbara E Mcdade, Anita Spring
Year2005
Volume17
Issue1
Pages17-42
Publication date2005-01-17
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueEntrepreneurship and Regional Development (JOURNAL)
Journal identifiersISSN: 0898-5626 • E-ISSN: 1464-5114
PublisherTaylor & Francis (PUBLISHER • GB)
DOI10.1080/0898562042000310714
OpenAlexW2152292416
LanguageEN
Citations received26
References cited27

This paper discusses the entrepreneurial landscape in Africa and locates a new generation of African entrepreneurs and their business networks within it. Unlike others in that landscape (i.e. micro- or small-scale informal sector vendors, and traditional or multinational large-scale formal sector firms), the 'new generation' entrepreneurs are business globalists who organized a system of business enterprise networks consisting of national, regional, and pan-African organizations. The study analyses interview data from 57 men and women network members from 10 countries (Botswana, Ethiopia, Ghana, Kenya, Mali, Senegal, South Africa, Uganda, Zambia, and Zimbabwe). Some defining characteristics of these entrepreneurs are interactive social and business relationships, use of modern management methods and information technology, trust among fellow members, transparent business practices, advocacy on behalf of the private sector, and commitment to increasing intra-African commerce. Their mission is to improve the climate for private sector business in Africa and to promote regional economic integration. They pursue cross-national commercial ventures, maintain official observer status at established regional economic organizations, sign memoranda of understanding with multilateral agencies, establish venture capital funds, and help to change government policies. The paper identifies characteristics of the 'new generation' entrepreneurs, evaluates goals and achievements of their networks, and concludes that despite limitations, these entrepreneurs and their organizations have created intra- and cross-national networks that strengthen private-sector-led economic growth in Africa. Keywords: entrepreneurshipprivate sectorbusiness networksAfrica Acknowledgements The authors wish to thank the University of Florida's Center for Business Education and Research (CIBER) and Opportunity Fund Grant Program for providing funding for research trips to Botswana, Ghana, Ethiopia, Kenya, South Africa, and Uganda, and the Center for African Studies for one author's trip to Senegal. We would also like to acknowledge the assistance of Dr Delores Koenig who conducted the interviews with network members in Mali. Notes WAEN is comprised of 13 countries: Benin; Burkina Faso; Cape Verde; Chad; Cote d'Ivoire; The Gambia; Guinea; Mali; Mauritania; Niger; Nigeria; Senegal; and Togo. EAEN has seven countries: Burundi; Djibouti; Ethiopia; Kenya; Rwanda; Tanzania; and Uganda. SAEN has 12 countries: Angola; Botswana; Lesotho; Madagascar; Malawi; Mauritius; Mozambique; Namibia; South Africa; Swaziland; Zambia; and Zimbabwe. Each Regional Enterprise Network is headquartered in the capital of one of the constituent countries (WAEN in Accra; EAEN in Addis Ababa; and SAEN in Lusaka). The pan-African network (AEN) was in Addis Ababa. The original regional enterprise networks websites were: WAEN (http://www.waenonline.com), EAEN (http://www.ugandacapitalmarkets.co.ug), and SAEN (http://www.saen.net). WAEN and EAEN websites have not been active since 2002. SAEN now uses (http://www.saen.info), although the most current information is from 2002. The networks receive support from a consortium of donors: USAID; Canadian International Development Agency (CIDA); French Agence Francaise pour le Development; Belgian International Development Agency; Swiss International Development Agency; the World Bank, and OECD (Orsini , , Light and Chibembe ). The approximate amounts and duration of donor contributions were: WAEN, US$3 250 000 (1992-2000); EAEN, US$855 000 (1998-2000); and SAEN US$970 000 (1998-2000), with an additional US$500 000 for SAEN after 2000 (Orsini : 25). In using the WinMax(R) programme, the analyst selects key phrases from the inputted text and assigns them to predetermined categories. The profile of network members is modelled from the demographic characteristics in the age, gender, education, and kinship categories. The business profiles of the network members are derived from these categories: type of business; history and longevity; business transactions; business culture (ethics and practices); constraints and enablers; and future goals. Representatives interviewed from these support agencies are as follows: Botswana: Empretec, Citizen Owned Businesses in Information Technology (COBIT); Ethiopia: Association of Women Exporters; Ghana: Empretec, Amex, Women's World Banking, Association of Ghana Industries, Ghanaian Association of Women Entrepreneurs; Kenya: International Finance Corporation (IFC) and Africa Project Development Facility (APDF) of the World Bank, Micro-enterprise Support Programme (MESP), K-REP Holding (financial services and business development), US Commercial Service, USAID; South Africa: Enterprise Florida, Business Women of South Africa, Transnet, Whiphold, Johannesburg Stock Exchange and its electronic trading coordinator, Strate; Uganda: US Commercial Service, USAID, Uganda Women Entrepreneurs Ltd (UWEAL), Private Sector Foundation, Uganda Export Promotion Board, Uganda Small-Scale Industries Association (USSIA), African Development Foundation (US-funded), Uganda Manufacturing Association. Also included were officials in government agencies, industry and manufacturer associations, chambers of commerce, banks and lending agencies (NGOs), professional associations, and other international agencies (e.g. African Development Fund, World Bank agencies). Various individuals provided personal and agency assessments of business conditions in the respective countries. They were identified through referrals from network members, donor agencies, membership lists of businesses and other organizations, previous encounters at conferences, etc. Also consulted were publications from the above and other agencies, including the US Department of State's US Commercial Guides and Country Reports, US Government Economic Outlooks for Ghana, Kenya, South Africa, and Uganda. The thread company had been a family business until the 1970s when it was appropriated by a socialist regime. The glass factory was purchased from the national government during the 1980s as part of the SAP divestiture scheme. Some earned high salaries in firms such as Morgan Stanley and Goldman Sachs before returning to Ghana or Kenya to start their own businesses. A few are currently employed with established foreign or domestic firms in Africa, and plan to use their savings to establish their own enterprises. Transparency International (TI) was founded in 1993. Headquartered in Germany, it has chapters in 85 countries. It claims to be the only international non-governmental organization devoted to combating corruption. In the international arena, TI raises awareness about the damaging effects of corruption, advocates policy reform, works towards the implementation of multilateral conventions and monitors compliance by governments, corporations and banks. At the national level, chapters work to increase levels of accountability and transparency, monitor the performance of key institutions and pressing for necessary reforms in a non-party political manner. National networks charge annual dues of US$250-500 per member, and each national network contributes $2500 annually to its regional network. Pedersen notes that 'an important part of the business services in developing countries serves agriculture' (1998: 1). This promotes product specialization by adding value to the primary commodity. Network members add value to primary agricultural commodities with business services such as branding ornamental flowers for niche markets; packaging processed poultry parts rather than whole birds for smaller urban households; supplying chicken feathers to bedding manufacturers; and crafting wood doors and home decorations instead of exporting raw timber. SAEN is working closely with key strategic allies such as COMESA, SADC, and the United Nations' Economic Commission for Africa (ECA) to help to fulfil its mission. It also works closely with national economic agencies and many donor agencies, including the OECD, the World Bank, USAID, the Agence Francaise de Developement, Canadian International Development Agency (CIDA), the Swiss Cooperation, the Belgian Cooperation, and the European Union (EU). SAEN also has business ties to investor organizations worldwide, including the US Corporate Council on Africa, the German Afrika Verein, the British-African Business Association, the Malaysian South-South Corporation, and the Singapore Trade Development Board (http://www.saen.info). An exception is in The Gambia where a network member chairs the Chamber of Commerce. It is not known if the presenters made other uses of these OTF data. When compared to OTF surveys of entrepreneurs in other regions, the OTF reported that network members responded 'yes' more often to the question, 'I often find it helpful to exchange business ideas with other business people from inside my industry'. The network members responded 'no' more often to the question, 'I prefer to do as much problem-solving as I can without turning to other sources for help'. SAEN 2002's mission statement specifically addresses gender, although there is no assessment of progress: 'SAEN is a pro-active and dynamic private sector institution that in line with its vision seeks partnerships with the public sector, civic society and the international community, to improve the business climate and economic productivity. Further SAEN, through its Women's cluster and HIV/AIDS cluster seeks to contribute to redressing gender imbalances and contributing to the fight against the HIV/AIDS pandemic that is rapidly eroding the regions human resource base' (http://www.saen.info

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