Africa is a continent with 700 million people, loads of untapped natural resources, and emerging economies ripe for development. So why do so few companies do business there?
Language and culture barriers is one answer; wars and harsh climates is another. But beyond these barriers lie what experts say are tremendous opportunities. Exploiting these opportunities will be the theme of a conference at Rhode Island Convention Center Nov. 17 titled “Business Opportunities with Africa.” The event — the first of its kind in Rhode Island — is an opportunity for entrepreneurs to learn what Africa can offer them — and what they can offer it, organizers say.
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“People in the past have thought of Africa as (our) giving them handouts — they didn’t think of Africa as equal partners,” said Rosemary Santos, executive director of the United Black & Brown Fund of Rhode Island, a conference sponsor. “We want this to be the beginning of (businesses) exploring further ties and relationships with Africa. This could be the start of something big.”
But Rhode Island business has yet to catch on. Of the 25 percent of Ocean State companies that export and import goods, less than 5 percent of them trade with Africa, said Thomas J. Rossi, assistant manager/sales consultant at World Trade Center Rhode Island. What they’re missing, experts say, are emerging economies in nations such as South Africa, Morocco, Gabon, and Senegal. They’re missing natural resources, such as the oil-rich Nigeria. And they’re missing chances to establish business links where virtually none exist now, they say.
Rich countries
“They don’t know how rich these countries are” Rossi said. On hand to educate them Nov. 17 will be Ambassador John E. Leigh of Sierra Leone, Alexander Wallace, economic counselor from the Embassy of the Republic of Liberia, and other African ambassadors, who will discuss “current perspectives on Africa from Africa.” The keynote speaker is Randall Robinson, president of TransAfrica, a Washington, D.C. public policy group. Robinson is an authority on African and Caribbean political and economic issues, Santos said.
But attendees will also get insight from people doing business there now. One of them is Katherine J. Dyer, a general partner with Cadeaux du Monde, a Newport company that buys crafts from African village artisans and sells them in the United States. Dyer said American companies that can help countries establish an infrastructure could do well in nations emerging from war, such as Mozambique. She noted that many countries are about the size of Rhode Island.
“The people who get there first are going to be the ones who get in on the ground floor,” Dyer said.
Returning home
Another trend driving the economies is successful Africans returning to their home countries — Ghana, for example — to retire or embark on second careers. Companies here could partner with these people, Dyer said. As an example, she said women’s cosmetic products could do well, noting that African women spend more per capita on personal adornments than American women.
“The Mary Kay model of cosmetics could do very, very well right now,” she said. “Makeup is there, but skin care is not.”
But culture differences and a lack of understanding of the political systems have contributed to the relative paucity of trade, noted Simon A. Goudiaby, program manager for the Rhode Island Small Business Development Center at Bryant College. But he added that Rhode Island could lead the way in showing that these barriers are surmountable.
“We want Rhode Island to be in the forefront to show that it can be done,” Goudiaby said.
Network possibilities
The event, which is open to any company interested in African trade, will also be an opportunity for business people to network, said Louis Francis, executive director of the Minority Investment Development Corp.
“It’s a very pivotal beginning as we try to focus on merging our economies,” Francis said, adding that, “it might be easier to do business in Africa than it is to do business in Mexico.”
Experts such as Dyer and others say Africa, with its emerging markets and natural resources, is the world’s next great economic development region. But accessing it is still difficult. For example, many Rhode Island banks are not up to speed on international trade, Dyer said. Americans traveling to Africa must get a number of shots — malaria is a reality there, she said. And, as always, language can cause problems, she said.
But demolishing these barriers is what this conference is about. According to Rossi, it will be a roll-up-your-sleeves kind of day.
“We don’t want to sit people down in a room for five or six hours and have them listen to a bunch of lame speeches,” he said. “This is a working plenary session.”
