Yesterday my drive through central Manchester took me past the defunct Jowata African Restaurant (pictured).  Black wooden boards covered the windows and entrance to the premises – certainly not a heartwarming sight.  The Jowata was closed to the public well over eight months ago for reasons beyond my knowledge.  While the restaurant never really had many raving fans (if online reviews are anything to go by), its closure was somewhat significant.  It effectively meant there was no longer a mainstream licensed African restaurant in the city of Manchester.

Big deal?  I would have to suggest it is.  The food and catering industry in this country is an eye watering multi-billion pound affair. The absence of restaurants serving African food would suggest a classic case of missed business opportunities.  More so in a city the size of Manchester.  That said, I struggle to get my head round why African food has never really taken off here.  Wisdom may be derived from the success of equally exotic Indian, Chinese, and Thai cuisines in a competitive British market.

Margaret Sengwaketse is a Research Fellow at the Botswana Institute for Development Policy Analysis (BIDPA).  She is currently undertaking research towards a Ph.D. degree at the University of Manchester.  Margaret’s thesis explores three possible explanations to manufacturing growth in Botswana; mineral abundance, the trade policy environment, and the general macroeconomic environment.  Margaret was kind enough to share her thoughts on some of my questions.

Q>> Can you please give an overview of the work BIDPA does and what your role there entails.
MARGARET>> BIDPA conducts policy research. As one of the researchers I conduct research particularly in the area of international trade.

Q>> Botswana’s economic success has invariably been linked to the mining of diamonds in the country.  Is there any basis for fears of a decline in mineral reserves?
MARGARET>> There is definitely reason to worry over declining mineral reserves. Data suggests that Botswana is over-dependent on mining as mining constitutes a significant share in government revenue, national output and exports. A decline in reserves would affect government revenue, output and exports.

Q>> Would you say the Tswana economy is diversified enough for the current economic success to be sustained?
MARGARET>> I have not calculated any diversification indices to give a definite answer. However, national output and export data suggests mining sector share in gross domestic product and exports is significant and has been so since the 1980s. The government has long acknowledged the need to diversify the economy away from over-dependence on mining and has introduced initiatives to stimulate growth in other sectors. However, up to this point I would say that although there has been growth in non-mining sectors, the dominance of the mining sector is still evident.

Q>> In your opinion, is the relatively small population of Botswana (approximately 1.6 million the last time I checked) a limiting factor to economic growth?
MARGARET>> This is one of the most difficult questions I will have to answer I think. A small population means a small domestic market, therefore future economic growth cannot depend on domestic demand. According to literature, export growth is one of the channels through which economic growth can be achieved in small economies. The impressive economic growth that Botswana has achieved was through mineral exports. We have already discussed the dangers of relying on non-renewable resources and that mining cannot sustain growth in the future because minerals are finite. That means other sectors with export growth potential should contribute to economic growth. The key here is diversification because if the economy moves from over-dependence on mining to over-dependence on something else, it is still vulnerable.

Some diversification has been achieved as some sectors such as tourism do contribute to exports. But more needs to be done to increase the contributions of other sectors to export growth. Manufacturing for example, could contribute more to exports than it does currently. But learning to export and increasing export shares takes time, effort and resources and exposure to the international trading environment can be a challenge especially for small and medium firms.

Q>> Botswana has been one of the few African countries funding a significant number of its citizens to study in universities and colleges beyond its borders.  Do trends suggest that these Batswana graduates return home upon completion? Either way, is the economy ready to assimilate their skills back home?
MARGARET>> I do not have figures on graduates who have trained and have not returned home to take employment or vice-versa so it is hard to give a definite answer. However, one of the challenges the government has been facing in recent years is graduate unemployment as well as a shortage of key skills. I do not have figures to give you an idea on the scale of the problem.

My thinking is that in as much as the government is committed to skills development and has used its mineral wealth to develop human resources, it cannot be the only employer and some skills have to be absorbed by the private sector. Like most of Africa, the government sector is already large and cannot grow bigger than it currently is. Though mining contributes a significant share to national output and exports, it employs a few people as it is capital intensive. Sectors such as manufacturing and services should absorb the excess sector. However, as we discussed earlier, these sectors need to grow more than they do currently to be able to absorb all these skills.

Q>> Botswana has often been cited, along with Ghana, as one of the few African countries where women are found in influential positions in relatively large numbers.  Would you say this is true?  If so, why is this so?
MARGARET>> I think the number of women in influential positions in Botswana is impressive. I am not able to relate it to the rest of Africa as I do not have the necessary data. Where women have demonstrated ability and have the necessary skills, I think they have been given the chance to be in influential positions in Botswana. However, it is never easy as women have to work extra-hard juggling all their responsibilities and [still] prove that they are capable.

Q>> Your other roles in life include being a mother and a wife. Any “work-life balance” tips for career-minded African women facing the challenges of raising a family?
MARGARET>> Like you said the key word is balance. It is never easy as parenting is a full-time job. But I try to do as much work as possible at work, leave work-related stuff at work and go home to be a mother and wife. By God’s grace, this strategy has worked for me.

Q>>Thanks so much for your insight and time Margaret!

Dave Duarte is a South African marketing geek – an entrepreneur, educator, internet and mobile marketing consultant all-in-one.  He runs his multiple ventures from his Cape Town base and blogs regularly at daveduarte.co.za. I caught up with Dave late last week and he kindly shared some thoughts in response to my questions…

Q>> You’re a self-confessed “Marketing Geek” – what does this entail exactly?

DAVE>> A Marketing Geek is interested in the intersection between marketing and technology. Personally, my interest is less in digital promotion, than how technology can be used to develop valuable relationships between customers and companies.

Q>> Can you tell us a little more about any ventures or projects you’re currently involved in.

DAVE>> Huddlemind, my startup, is what is keeping me busiest right now. We’ve got a little online network for educators going at Huddlemind.net, and we’re running workshops and gatherings to bring these people together to share ideas and inspiration.

I direct two executive education programmes for the University of Cape Town – Mobile Marketing and Nomadic Marketing. These deal with marketing with cellphones, and how to integrate marketing across traditional and new media channels to reach busy customers.
These are run publicly twice a year, and in-house for companies several times throughout the year.

I’ve taken on the role of Public Lead for Creative Commons in South Africa. Creative Commons offers free legal licenses that allow people to share their creative works, while reserving certain rights – such as the right to sell the work commercially. It’s exciting and important work, and I get to meet fascinating people through it all the time. We’re looking for collaborators throughout Africa for this.

The other exciting startup I’m involved with is Muti.co.za. It’s a popular social-bookmarking website – we’ve got over 50 000 monthly visitors, and around 4000 registered users. We’re about to make an interesting leap into another African country with a new Muti site.

Q>> You’re clearly part of a new breed of young South Africans exploring new ways of doing business. Do you feel Africa has what it takes to compete in the global arena?

DAVE>> Yes, African people have the ingeniuty to innovate with limited resources. A significant part of Huddlemind’s business over the last year, and a significant part of what most of the universities do, has been hosting foreign delegations who are simply here to learn about how to do business in emerging economies. Multinational companies see the need for their people to learn to share and collaborate more effectively in fast-changing, hyper-competitive global markets, and much of what Africans do well – from uBuntu to Innovating on a Shoestring – is admired.

Q>> A lot has been said about the exodus of skilled South Africans leaving the country to more lucrative (and safer) overseas destinations. What do you see as a solution to this trend?

DAVE>> I think we need leaders that we can believe in. Inspirational leaders who can restore hope and give us strong values-based direction. I think Barack Obama has stepped into this role in the US. Madiba did it for us when we needed it.

Q>> There’s a lot of talk about Web 2.0 being on its way out.  In your mind, what’s the next big thing and how do you think it will affect Africa?

DAVE>> I don’t think web2.0 is out, its focus is just shifting from geeks to the early majority of users. I think the next big thing will emerge as more people get cellphones that can access the internet, and then start using mobile devices as platforms for richer interaction. I think this will enhance access to knowledge, information, peer-support networks, and important services such as banking.

Q>> Out of pure curiosity – are you related to Fernando Duarte one of the co-founders of Nando’s?

DAVE>> Lol. Not that I know of.

Q>> Your insight and time is greatly appreciated Dave!

DAVE>> Thanks. I appreciate the space to express .

(Photo: Courtesy of Dave Duarte)

I have always had respect for consistently iconic brands.  Brands featuring prominently in my estimations include Apple, The North Face, Papa John’s Pizza, Timberland, and a few more.  A shortlist of my top African brands would have to include Nando’s, the fast-food restaurant chain.

Originating from South Africa with a Portuguese theme, the Nando’s restaurant chain has grown globally since 1987 when the first one opened in Rosettenville (near Johannesburg).  Nando’s franchises continue to mushroom here in the United Kingdom with talk of expansion into the competitive American market.  Like all solid brands, Nando’s thrives on a product that does all the talking and stands out in a crowded marketplace.  There is no substitute for vision – hats off to founders Fernando Duarte and Robert Brozin.

A few years ago, an advert for the Ford Bantam vehicle was aired on South African television networks. It was a humorous take on the socio-cultural dynamics of doing business in South Africa. Opinions may vary with respect to the accuracy of the advert’s racial undertones. Either way, it was the humour that carried the day – check it out.

National Express is one of Britain’s largest public transport operators. Its brand is most popularly associated with its inter-city coach network, but it also operates trains, airport transfers, and local bus services.

Last week, I found myself “parked” in a traffic jam positioned behind a National Express coach (pictured). Upon reading the bold lettering on the back of the coach, I had to smile when I got to the tagline:

“Make all your relationships long-distance”.

With National Express revenues set to rise as the population increasingly turns to public transport (due to soaring crude oil prices); Britain may yet be in for more long-distance liaisons…

Kofi Som Atiemo (pictured) is a Ghanaian airline pilot currently flying for Virgin Nigeria. Kofi Som is a graduate of the Oxford Air Training School, the University of Eastern Africa Baraton, and the University of Ghana (having obtained his MBA from the latter). I threw a few questions his way and he kindly obliged.

AA>> YOU’VE GOT AN MBA AND A BACKGROUND IN ELECTRONICS – ARE THESE THE PREREQUISITES FOR A SUCCESSFUL CAREER AS A PILOT THESE DAYS?

KOFI SOM>> The answer is NO NO NO, but then if you can get [an MBA] please do! The reasons are simple. The qualifications that anyone will need to fly an aeroplane are picked up initially in flying school and later on in airline training programes. There are basically two major approaches to training airline pilots. Firstly, the American system, with a strong focus on experience. Secondly, the European approach, which plays less on experience but insists on an intensive academic curriculum. Whichever route you choose, however, flying school is more of a vocational rather than an academic learning experience. Consequently, leading airlines world wide will insist on hiring pilots with other academic qualifications. This way they ensure the quality of their personnel.

Anyone interested in becoming an airline pilot too must recognise that the volatility of the industry necessitates securing alternative sources of income at an alarming rate. Consequently, the pilot who can occupy himself constructively during the industry’s down time is always at an advantage. Finally, most people will appreciate that aviation is a big field with many many opportunities to offer (safety assessment, career planning, administration, IT/IS, etc), even when a person is working full-time in a cockpit. Possessing alternative qualifications allows for one to patronise these. Of course, such patronage makes for a more lucrative, and overall more fulfilling career in the air!

AA>> AFRICAN AIRLINES ARE RARELY CLASSED IN THE SAME LEAGUE AS MORE REPUTABLE CARRIERS LIKE EMIRATES, SINGAPORE AIRLINES etc. WHAT ARE THE MAJOR CHALLENGES CAUSING THIS GAP?

KOFI SOM>> Hmm….I like the fact that you said “rarely”, i.e. there are some that are classed as being up [there] with the top ones. The reasons are many, but primarily lie in the absence of an appropriate business model. A look at those airlines in Africa that are world class (and yes there are some here that are!) openly brings them [to the fore]. Some such factors are:

1. Excessive governmental control. All airlines at the top of their game, nowadays, are more or less privately owned. African examples will include Kenya Airways, Ethiopian Airlines, and even Virgin Nigeria, a large stake of which is owned by Singapore Airlines and Virgin Holdings.

2. Lack of the appropriate partnerships. You cannot achieve world class standards by working alone. The fact that even the biggest and richest [airlines] in the industry (e.g. Emirates, Delta, JAL etc) strive to actively achieve these, shows it.

3. Lack of competitive equipment. To be able to work at the top of the business you MUST have the most efficient machinery. Often you will find airlines in Africa will lack this, opting for cheaper and older models of aircraft. These cost more to run in the long term and tie up resources that could otherwise be used to improve customer service.

4. Poor oversight! Now this issue truly cannot be solved without sincere governmental commitment. Africa is not known for a good safety record and this halts the growth of the industry.

The list does continue but the primary reasons are 1. and 2. above. There are world class airlines here [in Africa] and they [prove] that Africa DOES NOT exist devoid of the ability to produce quality.

AA>> FROM A PILOT’S PERSPECTIVE, WHAT ARE THE MAJOR DIFFERENCES BETWEEN FLYING IN AFRICA AND EUROPE IF ANY?

KOFI SOM>> Goodness do you want a book? I suppose they can be summed up in one sentence: “Over here you HAVE to think“! Basically, the support services provided in Europe by and large do not exist here. Weather phenomena are much less predictable, and even the best struggle to provide accurate information. Much of the airspace is uncontrolled, and navigational aides often will be faulty or innacurate (when they do exist in the first place). On top of this, in various places (e.g Democratic Republic of Congo) the political turmoil allows for rouge activity, not only on the ground but in the air too. [Consequently], one must be on top of his[/her] game at all times, because frankly, there are few safety nets here!

AA>> I KNOW YOUR OLDER BROTHER IS A PILOT IN THE GHANAIAN AIR FORCE. IS IT POSSIBLE TO BECOME A COMMERCIAL AIRLINE PILOT AFTER SERVING IN THE AIR FORCE?

KOFI SOM>> Oh yes. Many commercial pilots worldwide started out in the military. Modern trends are tending to frown on the shift, but it is very possible. What one must keep in mind is that the military trains with a different mindset and perspective. [Consequently], anyone interested in such a shift must be willing to change his spots.

AA>> THE GHANAIAN BUSINESS COMMUNITY HAS OFTEN BEEN CREDITED WITH HAVING AN UNUSUALLY HIGH NUMBER OF STAKEHOLDERS WHO ARE WOMEN. DO YOU SUBSCRIBE TO THIS OBSERVATION? IF SO, WHAT DO YOU THINK MAKES GHANA DIFFERENT IN THIS REGARD?

KOFI SOM>> The answer to this question is simply YES! All skeptics be told, simply take a stroll outside one of our busier streets, or walk into any market or social place, and you will be transformed in your view. I shall hesitate to make a comment as to how Ghana is different in this regard, because my interaction with female stakeholders in other economies is somewhat limited.

AA>> FINALLY, OUT OF CURIOSITY, WHAT DO YOU CONSIDER TO BE YOUR FAVOURITE AFRICAN AIRPORT AND WHY?

KOFI SOM>> Simple. KIA (Kotoka International Accra)! It’s got a runway long enough for the biggest aircraft, radar services 24/7, and CATII ILS, a great lighting system. To top it all, [it] means for me that after landing, I can go home!

(Photo: Courtesy of Kofi Som Atiemo)

There are currently four signs on the front lawn of the complex where I reside (pictured). Three of these signs are advertising properties for sale within the complex, while the fourth one indicates that a property has been rented out by the estate agency displayed. Collectively, these signs give a surprisingly accurate snapshot of the credit crunch currently ravaging the UK economy and the rest of the globe.

Our residential complex has always been a popular choice for people working in the surrounding metropolitan area. It has a reasonably desirable postcode with good access to regional transport links. Two years ago, any property within the complex advertised for sale was snapped up within two months on average. This is no longer the case. In stark contrast, two of the three “For Sale” signs pictured above have been on display for almost TWELVE months to date. The third sign is a recent addition. Meanwhile, potential buyers are nowhere in sight. On the other hand, the “Let By” sign (also pictured) refers to a rental property occupied within just a month of advertising. Combine all these elements together and a bigger picture emerges.

Simply put, this all reflects the prevailing chronic shortage of mortgage finance products for prospective buyers in the UK (and beyond). The knock-on effect is seen in the sharp decline in properties changing hands in the marketplace. It is interesting to note that, in contrast, rental properties are in high demand as more people are forced to look for temporary accommodation. The subsequent domino effect is infinite – falling house prices, job losses, a decline in construction and other associated sectors, to mention just a few examples.

All indications suggest that the signs pictured above are likely to be a long-term fixture on our lawn. Click here for a BBC overview of a recent International Monetary Fund (IMF) report on the global credit crunch.

On the 15th of July 2008, The Boston Globe featured a short article on recent developments in Croatia which caught my eye. It was a report on the Croatian parliament passing a law forcing shops to close on Sunday in a concession to the Roman Catholic Church. It got me wondering if this could be the beginning of a wider trend. I know for a fact some labour unions in other parts of Europe have been campaigning for similar changes over the past couple of years. Click here for the full article.

Eric Schmidt is the Chairman and CEO of Google Inc. He is widely respected as a business-savvy leader at the cutting edge of our Information Age. Below is a presentation he delivered at the IBM Business Partners Leadership Conference in May, earlier this year. He shares his thoughts about trends in the information technology arena. For the layman, his presentation can be slightly techie in some places, but it gives one a good feel of what the future holds for businesses. Warning: The video is almost fifty minutes long so make sure you watch it when you have more than a second to spare…