Do Rwanda's Relations with France Matter?

Probably. The French government remains very involved in sub-Saharan Africa. Given that Rwanda is unofficially a francophone country (it's officially Anglophone and people increasingly speak English, but many still speak French) it makes sense for producers there to try to expand trade with French consumers. Better relations may facilitate some of this.

Whether a recent visit by President Sarkozy accomplished this goal, or simply sets in motion a process that might lead to a more cordial relationship, remains to be seen. Here's another take on the trip.

Surely there are benefits for both sides from closer relations. For the Rwandans: the potential of increased official support and improved/expanded trade linkages; for the French: perhaps more influence in a volatile region, the possibility of access to some resources, as well as access to a growing economy filled with talented workers (not to mention the terrific coffee!).

But it may be the French government's careful admission that they -- along with the international community in general -- were "at fault" during the genocide that's most important -- a symbolic gesture for a people who continue to deal with the pain of the genocide.

- Karol

India Calling

One of my favorite memories from a visit to Rwanda involves hiking up a mountainside in Volcanoes National Park to see the mountain gorillas. As I was trudging up the trail, a Rwandan man in front of me was casually taking calls on his cellphone, completing various business transactions. Nice contrast: "wild" Africa meets modern Africa.

Cellphone use is skyrocketing in Africa (note the chart only tracks growth through 2008), so African consumers and entrepreneurs are likely to benefit from this news: the Indian company Bharti Airtel is buying the African assets of mid-East telecom firm Zain, and paying a bundle ($9 billion).

The story makes two interesting points: first, the process of accelerating urbanization is making sub-Saharan Africa a more attractive market for foreign investors. Why? These markets are filled with millions of potential consumers. This creates incentives for businesses to identify products and services that these consumers (bottom billion and otherwise) desire and provide them efficiently. Cellphones are just one example, but particularly important because they are being used in such innovative ways: to collect and disseminate medical information, to check crop and other market prices, to help the "unbanked" access financial services, etc.

Here's a nice quote from Aly-Kan Satchu, a market analyst in Kenya::

"The problem before is that Africa was very fragmented, with small towns spread out, and getting goods from Point A to B was very hard . . . now, young Africans are moving into urban centers in droves and companies are starting to look at the 1 billion Africans as potential customers. The switch has gone off."

The second point the story makes is that China and India are taking very different approaches to the economic opportunities in Africa. China is investing in resource development via state-owned enterprises; private-sector Indian firms are investing in different sectors. China's approach is to develop resources for its own use, not to sell to African consumers. Indian firms are trying to capture part of these expanding markets. Zenophobia and/or protectionist legislation could limit either approach. Personally, I'm excited about the growth of Indian-style investment and can't wait to see what cellphones offer the next time I'm in Africa.

- Karol

More US/Africa Trade, More Opportunity

The Office of the US Trade Representative reports that US-Africa trade volume is rising and has been for the past 8 years. The AllAfrica website carries the story here. One of the interesting observations in the story is the product mix involved in this trade. The story reports:

"The trade growth is being driven by several key economic sectors, including machinery, automotive vehicles and parts, wheat, non-crude oil products, aircraft, and electrical machinery, which includes telecommunications equipment."

Although the trend is positive, the level of US/Africa trade is still low. Why? A part of the answer is trade barriers within Africa. The story quotes Deputy US Trade Rep Demetrios Marantis:

"Average African tariffs are nearly 20 percent. This is compared to just over 10 percent for the rest of the world, and 5 percent for industrialized countries," Marantis said. [In addition]Many African countries lack manufacturing capacity and face challenges such as high energy and transportation costs. This makes products less competitive in global markets."

Building manufacturing capacity can happen when countries improve the environment for investment. Hopefully, the lure of a larger chunk of the world's trade will continue to spur a number of sub-Saharan countries, Rwanda included, to make these important changes.

- Karol

Indego Africa's Columbia Law School Fellowship Program

Indego Africa is proud to introduce our Spring 2010 Columbia Law School Fellows! This innovative fellowship program was arranged by Columbia's Law Students for Social Enterprise (LSSE), one of Indego Africa's great academic partners. The fellowship will be an ongoing program through which Columba Law School students will get pro-bono credit, as well as valuable experience, while assisting Indego Africa's legal department tackle a fascinating array of law and social enterprise challenges.

The three Spring 2010 Fellows, who will work on issues like international expansion, copyright protection, and much more, are truly impressive. Helen Gugel is the founder and former executive director of IMPACT! Humanity, a non-profit aimed at increasing awareness about microfinance domestically and faciliating microfinance initiatives in Nepal. She is a strong proponent of Indego Africa's model for sustainably empowering artisans abroad on their own terms. Initially inspired by the concept of sustainable enterprise when he observed a few examples while traveling in Southeast Asia, Miles Killingsworth is particularly excited about Indego's innovative organizational structure and its focus on sustainable skill development. He is pleased to join the Indego team and hopes to use his legal skills to help promote the growth and expansion of Indego's operations. Julia Szybala's field experience includes an internship with a legal non-profit in Sierra Leone and a student case study of a microfinance institution based in Nairobi, Kenya. Julia looks forward to expanding her knowledge of microfinance and international development as a part of her fellowship.

Please join us in welcoming these incredible additions to the Indego Africa team!

- Vicki Burr, Deputy General Counsel

Gaming as Empowerment?

The World Bank Institute is funding the development of a computer game called Urgent Evoke (subtitle: A Crash Course in Changing the World).

Urgent Evoke is designed to help people in the developing world, and in Africa specifically, develop new skills. It does this by presenting players with a series of real-world challenges that they choose, or refuse, to tackle. Players earn points for finding creative solutions to the problems they face, for example, a water shortage or escalating violence. Winners will be given start-up funds to create a new business, scholarships for school, or mentorships.

The game's creator, Jane McGonigal, hopes that players will feel empowered by the experience of solving these kinds of problems, problems many face on a daily basis. Empowerment in turn may lead to more innovation, more entrepreneurship--maybe especially social entrepreneurship--in Africa. If you prefer, you can sign up to be a mentor for players.

Cool experiment. Whether enough people in Africa have internet access for the game to have a significant impact remains to be seen. And, it may be that Urgent Evoke diverts attention from the "real" real world to the virtual real world. Maybe.

Wanna play?

- Karol

Indego Africa at HBS Africa Business Conference

A little over a week ago, on Feb. 20th, I was honored to speak at the 12th Annual Harvard Business School Africa Business Conference. The panel, entitled "The Space Between: Public, Private, Non-profit Approaches to Private Sector Development in Africa," explored the opportunities and challenges faced as these three sectors look for innovative and effective ways to collaborate for Africa's benefit. The panel was moderated by Allen Grossman, Professor of Management Practice at Harvard Business School, and I was joined by Kristi Ragan, Chief of Party, Global Development Alliances, DAI, and Kathleen Danoher, Investment Advisory Board, Capitalworks Equity Partners, South Africa and Endeavor, South Africa. It was wonderful to meet everyone!

My remarks focused mainly on the partnerships between Indego Africa (a nonprofit organization) and handicraft cooperatives in Rwanda (private, for-profit entities). The key to success, I contend, is committing to an atmosphere of respect, trust, and communication. For instance, our strong partnerships with Cocoki and Covanya are build upon candid discussion, careful listening, and transparency. This applies to all elements of the partnership, including product pricing, wages, quality control, and even Indego Africa's training programs, which utilize lesson plans designed from the ground up to reflect the women’s continuous feedback on what is most useful to them.

Indeed, the fact that the coops are our partners, and not part of Indego Africa, is crucial. The development of the artisans is instead intricately linked to the growth of their own businesses. The cooperative must become an enterprise that the women trust to operate effectively and ethically. It must refine and execute a business model that the women find profitable, equitable, and relevant to improvements in their daily lives. Each woman thus plays an important role in her cooperative, which is run entirely by the artisans and in full adherence to principles of democracy and fairness.

I could go on, but for now I'll say it was a wonderful experience to participate. The level of enthusiasm and opportunity buzzing around the conference (with more than 900 students and professionals in attendance) was truly invigorating. Thank you again to HBS Africa Business Club for the invitation.

- Ben