In February, I had honoured the invitation of moderating the Investor Forum at the annual Timeless Women’s Conference in Kigali, Rwanda which is one of the leading women empowerment conferences in Africa, and truly a Pan-African experience. Garnished with high-level speakers such as former First Ladies, Members of Parliament, Executives and Impact -driven Entrepreneurs, it was a convening that invited an opportunity to measure and see how Africans and those in the diaspora can do so in engaging discussions, and through that, create shared value.
Traveling to Rwanda for the first time, it certainly lived up to the expectation of it being one of the technology capitals of Africa. The moment I landed at Kigali International Airport, I was met with the warmest of service at the counters and my visa processed on arrival without any hassles. Before I knew it, it was time to get on stage at the two-day event, and moderate the investor forum which highlighted about Investing in Africa through themes including and not limited to Policy and Regulation, FDI and DFI, SMMEs, Digitization and Inclusive Capital Deployment. If anything to come out of the session, it’s that capital and innovation can’t solely be reliant on the private sector, government has to not only be visible in and during elections, but throughout the year, and so its work.
“Intra-Africa trade has been historically low. Intra-African exports were 16.6%
of total exports in 2017, compared with 68% in Europe and 59% in Asia,
pointing to untapped potential.” – World Economic Forum
“According to the UN Economic Commission for Africa (ECA), under the African
Continental Free Trade Agreement (AfCFTA), intra-African trade is likely to
increase by 52.3% by 2020.”– United Nations
Taking the above statistics into considerations, the engaged conference and traveling to one of Africa’s Foreign Direct Investment (FDI) Hotspots and one of the five fastest-growing economies on the continent, inspired me to analyse and share the concept of CSV through the diaspore lens, and through the channel of lessons learnt through my few days in Rwanda.
An academic concept coined by Harvard Business School Professors Michael Porter and Mark R. Kramer and was introduced in 2011 in the Harvard Business Review article ‘Creating Shared Value.’, this concepts looks at the core of wealth creation through shared value. CSV asks the question of how do you capitalise the very capitalism to trade, scale and share in profits and social impact by not trading off the one for the other?
CSV has been proposed to be achieved in THREE ways, and that is by Reconceiving products and markets, Redefining productivity in the value chain and Enabling local cluster development. Let’s take a look at how we can enable. Nurture and catalyse the principle of CSV and dive into examples and proposals of such an effort:
- Reconceiving Products and Markets
The first of the three keys of CSV in unlocked in creating new products and services or markets that will serve the socio-economic needs identified. This is the opportunity for intrapreneurs and entrepreneurs to activate value through the channel of new product innovation, and/or integrate them in products and markets that already exist.
Market-creating innovation (innovation that doesn’t rely on post infrastructure society and the financial markets it’ll create) that will help close the infrastructure financing gap in the range of US$68-US$108 billion. We need to propel further access into education for this opportunity and retain young people as per Whitney Houston (I believe the children are our future) – we need to let them lead the way. We need to center the youth in these dialogues, we encourage that.
Examples of such innovations are crowdfunding platforms as open innovation tools for co-creation, startups changing the course of African innovation and a COVID-19 investor matchup tool for startups (piloting). These examples continue to call upon the power of collaboration, creating new products (new or incremental) and a desire for a new market.
- Redefining Productivity in the Value Chain
Creating new products is great, but how do we ensure that efficiency is created, monitored and evaluated on par with the excellence that the product is created with? The value chain in Africa disrupted by one of few mechanisms, that of which includes the role of government in actualising the full potential of its nations. Looking at channels to access, use and manage resources, energy, suppliers, logistics innovatively and to full potential, and more productively is a unique opportunity as it is a challenge. African leadership is more than unfortunately regarded for the moral decay in leadership. Africa needs to become deliberate about the type of leadership that the continent requires to continue to open the runway for investment. Transformational leaders who are thinking generationally.
The difference in policy and regulations is that sometimes the policy frameworks doesn’t gel as well as with the outcome of the policy. We need to ensure that the AfCFTA and its compliance will bear the fruit that the projections of impact are highlighting. Government must lead prioritize in creating an enabling environment where better policies and regulations can be established for not only the multinationals but the SMMEs – creating Startup Acts and executing AfCFTA (now delayed due to COVID-19).
- Enabling Local Network and Development
Over the course of the years, we’ve witnessed and some participated in the FDI and particularly the investment in education, youth and technology as we’ve seen with Andela, Africa Netpreneur Prize (with Alibaba and Jack Ma), the expansion of Facebook Developer Circles across African cities and Mark Zuckerburg’s visit to Nigeria – this trend is one of clear opportunity that has potential to alleviate many social ills of our society. Improving the local operating environment through skills development and development training will invite coding academies like GirlCode, startup competitions like Seedstars World, incubating organisations like Foundervine and government-led innovations like Kigali Innovation City and its collaborators to pave the way. This is nothing new for Africa, and the through the interconnectedness and shared passion across the diaspora, CSV can be leveraged for its economic benefits to serve.
Ready to Create and Impact Value?
When we refer to the industrial revolutions and mention the empires that changed the course of history, that of the African Renaissance is often eclipsed. In his book Tech Adjacent, engages on the pioneering continent that Africa was and still is when it comes to technology, research and development and innovation. This leads us to the statistics provided earlier on the African Continental Free Trade Agreement, and the need to develop mechanisms that something like 4IR can bring to radicalize economic value and growth.
So what will it take to tap into this value and create it? The secret sauce is Africa is in the continent’s true diversity, resources, youth, (cross sector) collaboration, intra-African trade, community and innovation.
Investing in Africa and the diaspora is a paradigmatic moment for the continent and is inviting various stakeholders including DFIs and independent investors from across the globe. AFCTA is the heart of investment confidence at present in interstate trade and development talks. Partnerships and collaboration are prime in executing the policy frameworks and projects, and conferences like these hotbeds for creating such opportunities.
Although the science of CSV is that it pays for itself and is Daviding the Goliath of capitalism, capital resource allocation is the root of why the scales are not balanced, and how Corporate Social Responsibility (CSR) has come to pass. Also, in areas and communities where capital and its resources are needed for economic activity, a priority needs to place beyond championing the gift of food parcels. Africa and the diaspora can, are and will maximise the profit of nations and their organisations and continue to connect the thread and networks to inclusively innovate and develop for economic and development purposes.