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Report on the 2004 Wharton Africa Business Forum

by Valentine Fontama WG06

The Africa Business Forum that took place on the 19th-20th November was a remarkable success and a real eye opener to most attendees, myself included. This conference was very successful on many fronts: firstly it drew many high profile speakers from the USA, Europe and Africa. In fact we are honored that even the speakers from Africa paid their way here - a glowing testament of their commitment and the growing brand of the Wharton Africa Business Forum. Our keynote speakers were Dr Manu Chandaria, Chairman of Comcraft Group, a family owned business based in Kenya and operating in forty countries around the world; Adebayo Ogunlesi, Executive Vice Chairman of Credit Suisse First Boston in New York; Stephen Hayes, President and CEO, Corporate Council on Africa and Foluso Philips, CEO and Founder of Philips Consulting Group. Secondly, it attracted a large crowd of attendees from as far as Europe, Africa and Canada. Thirdly, the conference offered not only breadth but also depth: there were ten panels ranging from Business leadership to private equity in Africa. In addition, each of these panels navigated the many opportunities and real challenges in the African market. Furthermore, the speakers and panelists shared their rich experience of business in Africa, showcasing success stories and their solutions to some the main obstacles encountered.

In his keynote address Dr Chandaria gave a tour de force of the business climate in Africa, citing the challenges and the opportunities on the continent. He posited that African governments need to partner with the private sector and lauded the example of South Africa where some hospitals and schools are run by such exemplary partnerships. He also reiterated that we Africans have to find solutions to our problems. The Leadership forum that followed had very useful insights from Messrs. Wilfred Kiboro of the Nation Media Group, Kase Lawal of CAMAC Holdings and Terry Rhodes of Celtel. Mr Kiboro urged young Africans to aspire beyond a job and an apartment in New York while Mr Lawal proposed ten key skills for an African business leader in the new era.

The Made in Africa panel took a serious look at the African export businesses, exploring the key challenges and ways in which they can be overcome. Dr Chandaria suggested that African exporters should find new niche markets and feed their demand. Mr Amangoua from Cote d'Ivoire's export agency warned that exporters must learn the new rules of the game and network effectively to find new partners and markets. Finally Dr. Douamba from the IFC explained the criteria used by the corporation to assess potential projects.

The rapid expansion of telecommunications in the African market was explored in the Telecoms panel. Africa has the fastest growing mobile network market in the world and also one of the most profitable. Over 100,000 well paid jobs have been created in the Telecoms market and the number continues to rise. In this cash based economy prepaid services are dominant and revenue assurance high. Terry Rhodes presented a most interesting case study on Celtel, a successful mobile phone company founded by Africans, which has now expanded into 13 African countries. It is interesting to note that Celtel chose Africa for purely business reasons. The presentation highlighted the company's strategy to navigate the real challenges in the market and to meet the demands of its investors. Celtel refuses to engage in corruption and have clearly defined criteria for entering new markets. On his part, Dr Nwana examined the challenges in the African telecoms market showing how some governments have made the wrong choices. He lauded the Nigerian government for partnering with the private sector but posited that investment in Nigerian is unlikely to improve without changes in the business environment.

Another interesting panel was the Financing Investments in Africa panel. Mrs Osibodu presented a good case study on EcoBank, a successful West African bank founded and managed by Africans. She recounted the many successes of the bank in Nigeria, including the successful launch of the first international credit card (Mastercard). According to Mr. Oyeleke, funding and opportunities are available but are hampered by a lack of good ideas and capacity. Some of the key opportunities include: pent-up demand, untapped markets and cheap labor while the challenges involve a shortage of skilled labor, scarcity of good deals and limited exit options. As for Runa Alam of Zephyr Capital Management, there is plenty of high yield opportunity that is not available anywhere else. The right strategy is crucial. She proposed a possible strategy for the African Market that includes expansion capital, investing in multiple countries to reduce country and forex risk and the need for an exit strategy.

In his closing remark, Stephen Hayes of the Corporate Council on Africa (CCA) summarized the African business environment as work in progress. Noting some of the challenges on the ground, he welcomed the fact fifteen African countries now have credit ratings led by Botswana (with a sovereign credit rating of A2 from Moody's). The growth of regional bodies such as COMESA and ECOWAS was a welcome improvement. In his view NEPAD - an African plan devised and driven by Africans - also presents the best hope for Africa for a long time. Development in Africa, in his opinion, will only happen with the participation of entrepreneurs and African expatriates need to drive US investment in Africa. He proposed that a good way to convince US businesses to invest is to create a success story on the ground in Africa and the CCA can connect entrepreneurs to potential partners in the US.

In summary this was a very successful conference that provided ample opportunity to learn about the African market, network with serious entrepreneurs and get a totally colorful view Africa from many different perspectives. It was truly refreshing to attend a conference where Africa was seen not as a problem but as real and credible opportunity.

Please see the URL for some of the conference photos:

http://www.ofoto.com/I.jsp?c=15pns1b1.aqd1tc0t&x=0&y=-xpje1y

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