african infrastructure: bridging the gap · the genx engine is the sole jet engine with a front fan...

FALL 2006

African Infrastructure:Bridging the GapAfrican Infrastructure:Bridging the Gap

¥

IN THIS ISSUE. . .

FEATURES

China’s Growing Role in Africa 10

Africa’s Future: Tied to China’s Growth? 14

How should the U.S. position itself against China? 15

The African Brain Drain 18

BUSINESS & ECONOMY

Mixed Results for AGOA Trade 20

BEE Codes of Good Conduct 22

Navigating Anti-Corruption Rules 23

INFRASTRUCTURE

Q & A with Tim Richards, General Electric 32

ICT

Internet Exchange Points for Africa 33

ENERGY

Black Gold 34

AGRICULTURE

Lobster Tails from Mozambique 36

CSR

CSR Reporting and Changes Globally 38

HIV/AIDS

Building Local Capacity to Fight HIV-AIDS 39

TRAVEL

South Africa’s First Islamic Friendly Game Reserve 46

REGULAR CONTRIBUTIONS

Eye on Africa 4Members in the News 6Africa on the Hill 8USG Message 16Ambassador John Danilovich, MCCAfrican Gov’t Message 17President Ellen Sirleaf-Johnson, President of LiberiaSuccess on the Continent 24Partnerships 25Virgin & Nigeria Quarterly Column 28Business & Government Profiles 30Foundations 41MonsantoSAIBL 42South African BEEs to exhibit in U.S.Culture 44Contemporary African ArtsCelebrity 46Soweto Brings Home the OscarCCA Profiles 48Membership at a Glance 50

Editors: Ilda Diffley [email protected] Wells [email protected]

PRES

IDEN

T’S

MES

SAG

E

FALL 20063

Mission StatementThe Africa Journal is a quarterly publication of the Corporate Council on Africa, a non-profitmembership organization dedicated to enhancing trade and investment relations between theUnited States and the 53 countries of Africa. The Africa Journal aims to raise Africa’s profile as abusiness destination with numerous and diverse opportunities.

The Africa Journal’s Objectives are to: • Provide a synopsis of important trade policy and political developments in Africa;• Introduce key figures and stakeholders in the U.S.-Africa business & government

community;• Feature analysis and in-depth features on current economic & political developments;• Highlight CCA member companies and businesses’ success in Africa; and• Inform readers of CCA’s programs, services and events.

Special ThanksCCA would like to thank sponsors and special contributors for making this editionof the Africa Journal possible.

SPONSORSTITANIUM—Ethiopian Airlines PLATINUM—Emirates Air GOLD—Royal Air Maroc BRONZE—Cargill, Inc.

CONTRIBUTORSAllAfrica.comComputer Frontiers, Inc. Tom Carver, Control RisksCCA staffMartyn Davis, Centre for Chinese StudiesAbdoulaye DukuleEurasia Group Luanne Grant, American Chamber of

Commerce, South AfricaLarry Luxner, Luxner News Inc

(cover photo and travel article)

Mike Kelly, KPMG International Ambassador Princeton Lyman, Council on

Foreign RelationsMbendi Information ServicesMillennium Challenge Corporation (MCC) Neil de Smidt, Monsanto FoundationEdward B. Rowe and Thomas R. Snyder,

Hunton & WilliamsPaul Ryberg, Africa Coalition For TradeSara Thannhauser Carl UnegbuU.S. Department of State Virgin NigeriaRosalind Wilson, Emerging Markets Group

Design and LayoutPaul Fisher, www.fisherdesign.us

The Africa Journal, initially a tabloid publication, wasfounded by Abdoulaye Dukele. In 2003, all rights werepurchased by CCA from Mr. Dukele, and the publicationwas converted to its present magazine format.

TH E AF R I C A JO U R N A L 4

Content provided by Mbendi Information Services (www.mbendi.co.za)

E Y E O N A F R I C A

FALL 20065

E Y E O N A F R I C A


BRAND RECOGNITIONCCA member companies has performedexceptionally well in the leading globalbrand consultancy’s Interbrand’s andBusinessWeek’s annual Best GlobalBrands by brand value ranking, releasedon July 28, 2006.

The world’s top brand for the fifth yearin a row is Coca-Cola with a $67 brandprice tag. Other CCA members in thetop 10 include Microsoft (#2), IBM (#3),GE (#4) and Mercedes (#10)(Mercedes ispart of the DaimlerChrysler group).

Motorola (#69) is considered a GlobalBrand highlight in the category“Turnaround Performances,” partly dueto its new product the Razr. Starbucks(#91) was noted in the category “TopGainers” by leveraging the brand with apremium fast food and extending itsproduct offering into music andpublishing.

Brand value is calculated as the netpreset value of the earnings the brand isexpected to generate for the time frameJuly 1, 2005 to June 30, 2006. To beconsidered the brands must have aminimum brand value of $2.7 billion,achieve about one third of their earningsoutside their home coutry, have publiclyavailable marketing and financial dataand have a wider public profile beyondtheir direct customer base.

The Africa Journal congratulates all otherCCA members on the top 100 list.

MERCK RECEIVES PRESTIGIOUS GLOBALBUSINESS COALITION ON HIV/AIDSAWARDThe Global Business Coalition onHIV/AIDS paid tribute to the role ofbusiness in the global fight against AIDSby honoring Merck & Co., Inc. for itsongoing commitment to fighting theHIV/AIDS pandemic on a national level inBotswana.

The GBC honored six award recipients ata high-level Awards Gala in London on

May 22, 2006. Speakers at the Gala andAwards ceremony included British PrimeMinister Tony Blair, EuropeanCommission President Jose ManuelBarroso, Sir Elton John and GracaMachel.

“Botswana’s response to the HIV/AIDSepidemic stands as a beacon of hope tothe global community, demonstratingthat with political commitment, the rightpolicies, effective partnerships, resourcemobilization and broad communityengagement, it is possible to begin toreverse the course of the epidemic,” saidMerck Chief Executive Officer andPresident Richard T. Clark.

Merck is being presented with the GBCNational Action Award for its efforts tocombat the spread of AIDS in Botswana,a country where nearly 38 percent of theadult population is HIV positive. Inresponse to the massive threat HIV/AIDSposed to the very existence ofBotswana’s population, Merck, togetherwith the Government of Botswana andthe Bill & Melinda Gates Foundation,launched the African ComprehensiveHIV/AIDS Partnerships (ACHAP) in 2000.

Largely due to the initiatives put in placeand financially supported by Merck,Botswana is one of only three Africancountries to have exceeded the target oftreating more than 50 percent of the HIVpatients who require antiretroviraltherapy.

ANADARKO BUYS TWO GAS PRODUCERSFOR $21BNSAPA-AP reported that oil and naturalgas producer Anadarko Petroleum is inthe process of acquiring smallerproducers Kerr-McGee and Western GasResources. Houston-based Anadarko willpay $16 billion (R120 billion) in cash forOklahoma City-based Kerr-McGee, a 40percent premium over Thursday’s closingprice on the New York Stock Exchange.

Kerr-Mcgee and Anadarko are both CCAmember companies.

Published on the web by Business Reporton June 25, 2006.

VIRGIN NIGERIA - ONE YEAR AFTER Virgin Nigeria celebrated its firstanniversary on June 28, 2006, THIS DAYnewspaper in Lagos reported. On June28, 2005 Virgin Nigeria commencedcommercial operations in Nigeria withthe launch of three weekly flights fromthe Murtala Mohammed InternationalAirport, Lagos to London HeathrowAirport. Since this maiden flight, thecarrier flies into six cities in six countriesnamely, London, United Kingdom;Johannesburg, South Africa; Dubai,United Arab Emirates; Accra, Ghana;Douala, Cameroon, and Dakar, Senegal.

On the domestic route as well, it fliesfrom Lagos into Abuja, Port Harcourtand Kano while it flies into both Kanoand Port Harcourt from Abuja.

Virgin Nigeria, said to be the fastestgrowing airline in Africa, hopes thatbefore the end of the year, it wouldcommence operations into Jeddah, SaudiArabia and, if the government of theUnited States of America allows,operations into the lucrative New Yorkroute would commence.

THIS DAY further reported that over thepast year, Virgin Nigeria has carried,over 500,000 passengers and 1,000 tonsof freight.

ORACLE AT THE EAST AFRICA UTILITIESCONFERENCE NAIROBI, Kenya, 19 July 2006 —Delegates at the Applications in Utilitiesconference in Nairobi, Kenya, were toldby Oracle, the largest enterprise softwarecompany in the world, that utilitycustomers are able to divert morefunding into expansion and serviceenhancement because of the successthey have achieved in streamlining theiroperations and cutting costs.

“Without accurate, complete and timely

M E M B E R S I N T H E N E W S

FALL 20067

information companies cannot evenbegin to make changes that will savethem money and improve their service,”said Samir Eid, Industry Leader, Utilities,Oracle African Operations.

Utility companies were some of theearlier adopters of informationtechnology, and those systems are nowageing and are not fully integrated withnewer systems.

Oracle provides what it terms a “Fusion”approach to application developmentand application integration. OracleFusion Middleware simplifies thedevelopment, deployment, integrationand management of applications. OracleFusion Middleware will also serve as theinfrastructure that powers the nextgeneration of Oracle Applications.

ORACLE PROMOTES CCA BOARD MEMBERDESI LOPEZ FAFIEOracle Corporate announced thepromotion of Desi Lopez Fafie, CountryLeader for Africa to Vice President, witheffect from 1 August, 2006, inrecognition of his contribution to thecompany over the last 12,5 years and ofhis recent achievements in Africa. LopozFafie joined Oracle in 1993 and has heldmultiple positions in Pre-sales, ProductManagement and Sales Management inEurope Middle East and Africa and hasbeen in charge of operations in Africasince 2001. Over the last 2 yearsrevenues have tripled under hismanagement. His promotion is alsomeant to demonstrate the Corporatecommitment to Africa and to recognize

the achievements of his team

PAUL WOLFOWITZ VISIT TANZANIANCOFFEE FARM TO MEET TECHNOSERVECLIENTSThis month, World Bank President PaulWolfowitz met with small-scale coffeegrowers in northern Tanzania to learnhow a TechnoServe coffee initiative istransforming the lives of poor rural

farmers.

TechnoServe-with funding from USAID,the Swiss State Secretariat for EconomicAffairs (seco), the Swiss Agency forDevelopment and Cooperation andprivate donors-has worked with industryleaders to transform Tanzania into one ofthe world’s premium specialty-coffeeproducers. TechnoServe also helpedestablish KILICAFE, a farmer-ownedassociation, and has encouragedgovernment reforms that have loweredfarm-gate taxation and authorizedpremium coffee producers to sell directlyto foreign buyers.

TechnoServe is currently partnering withthe World Bank to help KILICAFE farmersreduce financial risk by adopting pricerisk-management tools and developing aweather insurance scheme.

ETHIOPIAN AIRLINES CHOOSES GENXENGINEThe CINCINNATI BUSINESS COURIERreported on July 27, 2006 that EthiopianAirlines has purchased GE Aviation’sGEnx engine to power its fleet of 10Boeing 787 Dreamliners. The order isvalued at $330 million. Delivery isscheduled to begin in 2008.

Ethiopian Airlines will be the first inAfrica to fly the GEnx-poweredDreamliner, Roger Seager, GE Aviation’svice president of sales said in a newsrelease.

The GEnx engine is the sole jet enginewith a front fan case and fan bladesmade of composites, which provide forgreater engine durability, weightreduction and lower operating costs.

GE Aviation, based in Evendale, developsand manufactures jet engines forcommercial and military aircraft. It is aunit of General Electric (NYSE: GE),headquartered in Connecticut.

HP TO LAUNCH CAPACITY BUILDINGPROGRAM IN SOUTH AFRICAMoneyweb posted a press release

announcing HP South Africa’s proposedcapacity building programs. In light of askills shortage within South Africa’s localInformation Communication Technology(ICT) sector, HP South Africa and theInformation Systems, Electronics andTelecommunication Technologies Sectorand Education Training Authority (ISETTSETA) announced a series of capacitybuilding programmes. The programmesinclude an Accelerated DevelopmentProgramme (ADP), and a GraduateProgramme. With an estimated 200 to300 ICT-skilled resources leaving SA eachmonth, program of this nature areessential for South Africa’s ICTdevelopment.

Basetsana Magano, HR Director at HPSouth Africa said “We are committed tocontributing to South Africa’s ICT growthand, more importantly, we believe thattechnology is an enabler at every level,not just in the boardroom - but also inthe classroom and in rural communities.At HP, our people are our mostimportant business assets - their skills,ideas and enthusiasm are crucial to oursuccess. HP strives to attract and retainthe best talent and continuously workwith employees to help them fulfil theirpotential.”

CCA members are encouraged to submittheir Africa focused press clippings orpress releases to The Africa Journal forpublication in “Members in the News.”Email submission [email protected]

M E M B E R S I N T H E N E W S


A F R I C A O N T H E H I L L

FALL 20069

A F R I C A O N T H E H I L L


IF YOU BUILD IT,

FALL 200611

The inadequacy of Africa’s infrastructure is largely a legacy ofits colonial past, exacerbated by the decades of instability,regional conflict, and poor governance that have been therule, rather than the exception, since the wave ofindependence spread across the continent in the latter half ofthe twentieth century. During the colonial period, thedevelopment of Africa’s energy and communicationsinfrastructure (including transportation) was driven primarily by

the requirements of raw-materials export to feedmanufacturing and processing industries in industrializedcountries. The infrastructure’s suitability for intra-African tradeand support for the secondary and tertiary sectors of theregion’s economy was seldom a priority. Today, less than 10%of Africa’s inter-state trade is among countries of thecontinent itself, while manufacturing accounts for only 15%of GDP.

< By Michael Trainor & Sarah Friedfeld. >

Africa’s underdeveloped infrastructure represents the most acute constraint on the continent’s

economic performance and growth (with corresponding outcomes for the region in terms of

human development and welfare). Africa’s massive potential remains essentially un-tapped: the

lack of adequate transportation and energy infrastructure renders it next to impossible to fully

exploit its natural resources and its abundance of low-cost (albeit largely unskilled) labor.

Mobilizing investment of the required magnitude remains a formidable challenge. To overcome it,

an enabling policy and institutional framework must be built.

THEY WILL COME

Since independence, too little has changed: the continent’sdevelopment has been constrained by varying degrees of poorgovernance, from “big-man” rule and wide-scale corruptionbenefiting small groups of elites, to the perhaps more innocent- but similarly harmful - misguided pursuit of statist andprotectionist economic development policies. Alas, thesephenomena have not been entirely eliminated, although Africahas certainly come a long way since the dark days of the mid-1970s.

Africa’s development needs have been the focus of increasingworld attention over the past decade, and a number of newand ambitious initiatives have been launched to address them:

• The New Partnership for Africa’s Development (NEPAD)includes infrastructure development as a central element ofits program, focusing on sector governance and policyframework to facilitate resource mobilization;

• A $305 million Emerging Africa Infrastructure Fund hasbeen established at the initiative of the British, Swedish,Dutch, and Swiss governments to provide long-term debt onessentially commercial terms to leverage private-sectorinfrastructure investments;

• Multilateral and bilateral development institutions continueto offer stimuli for private investments through various creditenhancement schemes (e.g., loan guarantee facilities such asUSAID’s Development Credit Authority);

• An innovative new initiative announced recently has comefrom within Africa itself. South Africa’s Public InvestmentCorporation has proposed the establishment of a Pan-African Infrastructure Development Fund (PAIDF)—amulti-billion dollar equity fund to promote private-sectorinvestment in the continent’s transportation, energy, water,sanitation and telecommunications infrastructures. ThePAIDF’s architects hope to initially raise $1 billion of long-termcapital from public pension funds from across the continent,and thereafter to expand the fund by tapping intointernational capital markets, once PAIDF’s viability isdemonstrated. The focus will be on infrastructure investmentsthat enhance intra-African integration and trade.

POLICY PRIORITIES, OPPORTUNITIES, ANDRECOMMENDATIONS

To overcome the legacy of Africa’s colonial and post-colonialpast, policymakers at the national, regional, and internationaldevelopment institution levels should focus on introducing thecatalysts needed to mobilize investment in the region’sinfrastructure and therewith spark the engine of growth for theregion’s economy. With appropriately focused development ofthe continent’s infrastructure, two mutually reinforcingdynamics should emerge: export-driven growth (transitioningfrom raw-materials export initially to a mixture of raw materialsand value-added output) and intra-African trade andspecialization. To achieve this vision, two critical elements mustbe present: consistent and conducive policy frameworks at thestate and regional levels, and adequate capital to finance theneeded investments.

It is a given that few countries in sub-Saharan Africa have thewherewithal to finance from the public purse even a smallportion of the massive investments in infrastructure needed forAfrica’s growth—and to the extent that infrastructure servicesare viewed as private, rather than public goods, nor shouldthey. Effective state policy addresses the causes of marketfailures and impediments to efficient resource allocation, nottheir symptoms. This principle should guide policymaking forinfrastructure development.

While policymakers must recognize the need to tailor policiesand programs to the unique challenges inherent in eachdiscrete environment, what is essentially lacking across theboard are sound and enforceable property rights regimes, legaland regulatory frameworks, and —most importantly—functioning public institutions to make these effective. As thisframework is built, mobilizing private capital to fill the void inAfrica’s infrastructure will become easier.

An encouraging feature of the PAIDF initiative is its implicitrecognition of the importance of mobilizing domestic capital tofinance infrastructure investments: domestic capital is less


F E A T U R E

AFRICA REMAINS THE MOST INFRASTRUCTURE-POORREGION ON EARTH BY VIRTUALLY EVERY MEASURE:• Compared to Latin America and the Caribbean, on a

per-capita basis, inhabitants of sub-Saharan Africa areless than one-half as likely to benefit from improvedwater and sanitation services.

• The continent’s road network can be described at bestas rudimentary, and its state is deteriorating. Accordingto World Bank Statistics, in 1990 16% of its roadnetwork was paved. By 1999 (the last year for whichstatistics are available) that figure had dropped to 13%.

• Sub-Saharan Africa’s per-capita power generation is onlyone-fourth that of Latin America and the Caribbean.Perhaps more revealing of the true underdevelopednature of Africa’s infrastructure is the fact that only 23%of its population has access to electricity—thecorresponding figure for Latin America and theCaribbean is 87%. Moreover, the picture has scarcelyimproved over the past twenty years: Sub-SaharanAfrica’s power generation per capita has remainedvirtually static, while for Latin America it has nearlydoubled.

burdened by considerations of exchange risk, better able tomanage and control political risk, and generally entails lowertransaction costs through the employment of localprofessionals during project development, due-diligence andimplementation phases. Accordingly, governments andinternational development institutions should focus on thedeepening of domestic capital markets as a complement to, orperhaps even as a component of, infrastructure developmentprograms. The availability of long-term domestic capital willaccelerate the pace of investment in the continent’sinfrastructure.

As implied above, Africa’s abundance of natural resources andits human-capital wealth have the potential, if properlymobilized, to fuel the rapid growth of the continent’s economy.Too often in the past, resource-rich countries have managed todevelop themselves into single-commodity economies byneglecting investments in the enabling environment foreconomic diversification. A ground-breaking model forresource-wealth management can be seen in the TanzanianMtwara Region Gas-to-Power Project, where a foreign investorhas been invited to develop the Mnazi Bay’s gas deposits onthe condition that there is a parallel investment in theexpansion of Tanzania’s power system and use a portion of theextracted gas for power generation. (Incidentally, the EmergingAfrica Infrastructure Fund has provided a $35 million, 12-yearfixed-term non-recourse debt facility for this project.). Goingforward, African governments can look to this example inleveraging their economies’ comparative advantages againstone another, with natural resource exploitation serving as acatalyst for development and investment in the continent’sinfrastructure, which in turn will fuel investments in secondaryand tertiary sectors.

While viable capital-intensive “mega-projects” should certainlybe part of countries’ infrastructure development agendas,equal consideration should be given to projects that generateimmediate employment opportunities through labor-intensiveconstruction methods, including smaller-scale, localized off-gridand renewable resources. This should be relatively easy tojustify considering present global shortages of heavy

equipment fueled by booming construction activity in China,India, and the Persian Gulf.

SUMMARY

Sufficient opportunity exists to mobilize and leverage private-sector capital to provide infrastructure services in Africa. Theoften-bemoaned policy dictates of international financinginstitutions remain valid, despite the challenges of realizingthem in practice. Market forces must be brought to bear toprovide for the infrastructure sector’s development, efficiency,and long-term sustainability.

National governments and international developmentinstitutions should emphasize the importance of sound publicpolicy frameworks in attracting private capital for infrastructureinvestments, be it domestic or international. Natural resourceexploitation through foreign direct investment should beencouraged as a catalyst for development, but should beframed in such a way so as to deliver long-term, trans-generational returns for the continent’s national economies. Ofequal importance, policies and development assistance shouldfocus on deepening domestic capital markets to accelerate thepace of investment in the continent’s infrastructure.

Africa’s potential is waiting to be realized. The infrastructuresector and industries are waiting for capital from privateinvestors. If countries in Africa can succeed in building the rightpolicy and institutional frameworks, private investors, bothdomestic and international, will come.

J. Michael Trainor is the Manager of Public Sector Services at theEmerging Markets Group. Emerging Markets Group (EMG) is aninternational development consulting firm with corporate offices inWashington, D.C., Brussels, and London, and project offices in morethan 60 countries in Africa, the Middle East, Europe and Eurasia, Asia,and Latin America and the Caribbean. EMG has more than 300professionals engaged in executing our Mission to apply businessexpertise to promote sustainable development and improve peoples’lives. http://www.emergingmarketsgroup.com For more informationcontact J. Michael Trainor on [email protected]

FALL 200613

F E A T U R E

Privateequity has taken iton the chin recently

being compared to vultures and agentsof plague. It is not so surprising thatemployees, customers and suppliers tocompanies that undergo a “leveragedbuyout” and find themselves an“investee” company in a private equityfund portfolio, may wonder about theirfuture. After all, after loading up amature company in a mature marketwith lots of debt, the first place onelooks to quickly improve profitability is byslashing costs.

Private equity in Africa is different.Whether focused on Algeria or Zambia,private equity in Africa depends onidentifying high growth businessopportunities operating in low volatilebusiness environments and providingthem with growth capital.

Is using the words “low volatile” andAfrica in the same sentence anoxymoron? Absolutely not. EMP Africa’sexperience over the past six years, nowhaving four funds totaling almost $1billion under management, permits us toclearly state that certain Africanbusinesses operate in low volatileenvironments benefiting from highbarriers to entry achieved throughconcessions (the right to mine, drill ortransport), licenses (e.g. mobile phone),high upfront capital costs, or high brandrecognition, (sometimes in the form ofcorporate good will generated throughpositive steps taken in their hostcommunities).

At the same time, many of thesebusinesses are responsible for some ofthe continent’s fastest growing sectors.Businesses across all regions of Africahave been quietly demonstrating worldclass operating and financial results inareas where Africa has historically held acomparative advantage, such as inenergy, base and precious metals, agro-businesses and other activities that

benefit from attractive climates or havebeen blessed with natural resources.Newer businesses, relying on theapplication of appropriate technology,proven management with a globalperspective and improved businessenvironments are tackling the sectorswhere Africa has historically lagged.

That it is possible to make money inAfrica cannot be a surprise to anyonewho reads annual reports from some ofthe world’s largest companies. Shell,ExxonMobil, Cargill, Caterpillar, AirFrance, Anglo American, Vodafone,Phelps Dodge, Vivendi, Canal Plus,Alcatel, Kawasaki, ABB, Barclays ...thelist of well known companies withsignificant operations in Africa is a longone.

However, investment in Africa across themost attractive sectors has been severelyrestricted; not by lack of opportunitiesbut rather by the type of investor andthe resulting type of investment. Africahas become a continent of projectfinancings - investments are made bysubsidiaries in assets not corporations.The result: profitable investments bymultinationals have failed to creatediscrete African companies. The smalluniverse of African “black chips” createprecious few African financial securitiesthat can then be accessed by local saversor emerging market financial investors.

From our perspective, increasing foreigndirect investment in Africa will naturallyfollow the creation of well governedcompanies that emulate successfulcompanies throughout the emergingmarkets. In other words, nothing newneeds to be invented for Africancompanies to succeed. Rather, it is thetime honored principals of transparency,sound corporate governance and other“basics” that will allow Africa’s bestenterprises to grow into regional and, intime, multinational companies.Companies that are driven by well

governed, independent boards who arecharged with the responsibility ofmaximizing value for all shareholders willcreate financial products such as listedshares, mezzanine and senior debt thatwill be researched, bought and traded bytraditional emerging market investors.

Is this development a long way off? Thewinds of change are blowing acrossAfrica. Globalization, especially increaseddemand from Asia for products andgoods that Africa has historically had acompetitive advantage has had theeffect of sharply escalating, prices for thenatural resources that underpin manyAfrican economies. The combination ofhigher prices and the addition ofcustomers from Asia have created theneed to expand and improve theinfrastructure that supports the naturalresource sector. With much of theincremental growth in demand comingfrom Asia, there has been anaccompanying move away from some ofthe historical providers of services (read,European companies). A good illustrationof this is the development of new portsalong the Red Sea which handle trafficfrom Asia to Egypt and serve its largehinterland without the need to gothrough the Suez Canal or have anythingto do with Europe. Liberalization is alsotaking hold and with it Africa’seconomies have for several years beengrowing faster than the U.S., Europe orJapan.

It is also interesting to see the continuingrobust performance of thetelecommunications sector across Africa.The surprising success of mobile phonesin Africa occurred for a number ofreasons. Among them; the data from theWorld Bank and the IMF that measureddisposable income clearly understatedreality. The telecom vendors were willingto discount first generation equipmentwhile the costs of hand sets have steadilydeclined. Perhaps the most importantsingle development was the application


In Africa, Private Equity is Venture Not Vulture < By Thomas R. Gibian >

F E A T U R E

Continued on page 39

FALL 200615

of pre-paid phone cards. Customers nolonger needed to have a checkingaccount or a credit history and couldmonitor and control spending (note thepopularity of instant messaging inAfrica). Operators were no longerdependent on unreliable postal servicesto deliver bills. The initial feasibilitystudies conducted just a few years agothat projected the number of subscribersbased on who owned a car, arefrigerator and had taken a trip toEurope have been thrown in the bin asseveral African countries have surpassed50% subscriber penetration.

But it doesn’t stop here. We are now infor a wave of telecom consolidations ledby African companies such as MTN(South Africa) and Orascom (Egypt)followed by Gulf companies includingMTC (Kuwait) and Etisalat (UAE). This isparticularly newsworthy as thetransactions involve billions of dollarsand originate from companies that eitherdid not exist ten years ago or who arebrand new to Africa.

There are other lessons to be derivedfrom the success of both mobile phonesand mobile phone companies. Howcome an industry that did not exist for allintents and purposes ten years ago inAfrica has not fallen victim to all thenegative news surrounding Africa?

It is precisely because the African mobilephone sector did not exist ten years agothat it has had the opportunity tosucceed. Governments viewed mobilephones as little more than toys for therich. With no mobile phone incumbent,no workers, no privatization proceduresto follow there was, in effect, no existingsocial contract that called forgovernments to protect anybody. Mobilephone operators were free to run theirbusinesses without interference.

Contrast this wide open playing fieldwith the electricity sector wheregovernments still perceive a socialcontract calling upon them to protectworkers and consumers. The result, notsurprisingly, has been that many

electricity companies throughout Africahave failed to attract a fraction of themoney necessary to fulfill theirmandates.

In contrasting, say, telecoms withelectricity one conclusion that we draw isthat investors working in the commercialenvironments of Africa must focus onhow they are, not on how we would likethem to be. It is not the job of privateequity fund managers to change thepolitics of a place or its regulatoryenvironment or banking system. Wehave the relatively narrow focus ofidentifying 10-15 successful companiesin proven industries who meet ourinvestment criteria and are willing to putup with at least some of our notions asto how things should be done. Whilepicking good companies is a challengeanywhere in the world, Africa, in fact,does not lack for entrepreneurs andlimited competition among private equityfirms has been our friend. Ourexperience has shown us that somecombination of discipline, a long-termview and old fashioned luck will continueto make Africa an attractive destinationfor private equity.

The most attractive opportunities favorlarge private equity funds which caninvest in proven companies that canmaximize shareholder value byexpanding either organically, throughacquisitions or both. These companieslook to private equity funds to fuel theirgrowth and achieve the next level ofcorporate development. In Africa, it isnot necessary to pull companies kickingand screaming into adopting world classgovernance standards. Either they wantto or they don’t. The management teamsthat “get it” provide research foranalysts of African companies, which canbe measured against similar companiesin Latin America, Asia and EasternEurope. An important bridge is crossed;our companies are talked about.

In Africa, private equity, as a securityclass, is uniquely positioned to be acatalyst; guiding or prodding or, perhaps,

just cheerleading their portfoliocompanies into becoming part of theuniverse of companies followed inLondon, New York and Tokyo, In thismanner, African companies will haveaccess to huge new sources of capital,achieve a competitive advantage againsttheir less transparent peers and begin tohave a positive impact on how Africancommerce is viewed in board roomsaround the world.

F E A T U R E


U S G M E S S A G E

FALL 200617

A F R I C A N G O V E R N M E N T M E S S A G E


F E A T U R E

FALL 200619

F E A T U R E

SCIC,a New York-basedfinancial advisory firm,

provides advice on how to structurefinancings that investors will accept. It hasexpertise in credit ratings and structuredfinance and has advised clients in Africaand elsewhere. This article summarizesproject finance risks that concern lenders.

Project financings involve contractualarrangements among the government (asregulator and / or concessionaire), sponsors(public or private entities), equity investors,operators, rating agencies, guarantors,lenders, etc. The financings typically involvea special purpose vehicle (SPV), which mayborrow on a non-recourse basis, basedsolely on the project’s assets and cash flowsand not the credit of the sponsor.

Understanding how lenders look at risksin such transactions may help thoseseeking to structure successful projectfinancings. The key credit risks in projectfinancings can be grouped into threecategories: political risk, commercial risk,and financial risk.

1. Political Risks

While some twenty African countries arenow rated, country ratings only address theability and willingness of the sovereigngovernment to repay its own debts. Projectlenders tend to focus in more detail on twoother areas of sovereign or political risks.

First, they ask if the country lives by therule of law. Are there effective legalprotections for physical, movable and/orintellectual property, for perfection ofsecurity interests in physical or financialassets, for enforcement of contracts /claims and for use of special purposeoperating / financing entities? Is there riskof “creeping expropriation” throughcontract frustration and / or abrogation?Do local courts honor judgments of foreigncourts and awards from internationalarbitration, e.g., through adherence to the

New York Convention and entry intoForeign Judgment EnforcementConventions with all capital-surpluscountries?

Second, investors consider regulatory risks,which include the predictability of the taxregime and the process and reliability ofthe regulatory regime in securing costrecovery through rate increases, in limitingnew licenses, and in maintaining a levelplaying field. The best mitigant of suchrisks is a regulatory authority that operateswith maximum transparency within asystem of laws and regulations thatprovides redress for actions consideredarbitrary.

2. Commercial or Project Risk

Commercial or project risks concern theeconomic or financial viability of aproject and include project construction /completion risks, sponsor risks,operational and supply risks, anddemand / concession / offtaker risks.

2.1 Completion orConstruction Risks

Construction or completion risk ariseswhen even a well-conceived project fails tobe completed or fails to perform asexpected for any reason and thus fails togenerate sufficient cash flows.Construction risks include design andtechnology risk, permits and siting,environmental, social and a range of otherrisks that could result in delays and / orcost overruns and/or in underperformanceversus specifications. Construction risk canbe significant due to the capital-intensivenature of infrastructure development, itspolitical and economic context, and thelong time it takes to build projects. Whileconstruction risk generally ends when aproject is operational, underperformance orplanned modifications (e.g., conversionover time from high-cost oil to low-cost

gas) may re-introduce some constructionrisks.

Completion risks can be reduced through avariety of means. One method is to shift aportion of this risk to contractors throughengineering, procurement, andconstruction contracts (EPC) that providefor substantial liquidated damages forbreach of contract. While EPC contractsmay reduce construction risk, they do noteliminate it as penalties are typicallycapped. The reputation, experience andpotentially the credit rating of the EPCcontractor are thus critical.

2.2 Sponsor Risks

The sponsor is the principal equity investorand / or promoter of the project althoughthe financings typically use special purposevehicles, without recourse to the sponsor.While the sponsor may or may not beresponsible meet financial obligations ofthe project, the sponsor is the “drivingforce” and can influence borrower actions.Investors assess the sponsor’s track recordin completing and operating similarprojects in similar jurisdictions. When thesponsor provides a completion guarantee,a partial performance guarantee, atermination payment guarantee, additionalequity, liquidity advances, or other projectsupport, the lender may also be exposed tothe creditworthiness of the sponsor, anassessment of which goes well beyond thesponsor’s operational capabilities.

2.3 Operational and Supply Risks

Once the project has been completed, itmay face a variety of operating risksaffecting the quantity and / or quality ofits production. Risks could arise fromlabor strife, financial problems,equipment failures, or natural disasters.Operating risks are the lowest forprojects employing a tested technology.Operating risks are typically mitigated


Understanding Project Finance Risks1

B U S I N E S S A N D E C O N O M Y

1 By Mahesh Kotecha, President, Structured Credit International Corp. (SCIC), www.4scic.com, 212-605-0123, with research assistance of SharonRyan, Senior Financial Advisor with SCIC.

through: (i) a careful selection of anexperienced operator and / or anoperations and maintenance (O&M)contractor with relevant expertise, trackrecord and financial strength, (ii)contractual provisions that includepayment of liquidated damages if theproject underperforms, and (iii)appropriate insurance.

An important operating risk relates tosupply of inputs, e.g., the fuel needed togenerate power. The fuel supplier shouldbe carefully selected and the supplycontract should provide for sufficientinputs to support project operations atexpected levels. To protect against therisk of inadequate supplies, it may bepossible to obtain a performanceguarantee, where an insurer agrees toindemnify the project by paying cash orcovering the shortfall in kind.

2.4 Demand / Concession /Offtake Risks

A project typically generates products orservices to meet expected levels ofdemand, which may fail to materialize.

For example, a toll road may generatelower levels of traffic than expectedbecause the toll may be unaffordable orbecause alternative roads may retaintheir attractiveness. A power project maybe capable of producing a lot morepower than needed if projected growthin demand fails to materialize. Whenproject demand is lower than expected,cash flows may be insufficient for timelyrepayment of debt.

To protect against collapsing demand, apower project may undertake a PowerPurchase Agreement (PPA) with a public orprivate sector electric power distributioncompany (the buyer or offtaker), which isoften a monopoly. Under the PPA, theofftaker may promise to (i) buy a specifiedlevel of power output (and capacity) for aspecified price or (ii) pay the seller aminimum amount if it fails to take uppower per contract. To value such a PPA,the lender will assess the credit quality ofthe offtaker.

A key consideration is whether the projectis a low or a high cost producer. In theabsence of mitigating circumstances, a

high cost structure makes debt servicepayments more risky. Another key elementfor economic viability is whether theproject provides an essential product orservice with limited or no substitutes.

3. Financial Risk

Projects must withstand numerousfinancial risks both with respect torevenues and expenditures, e.g., marketrisk if interest rate on the loan is notfixed but floating, or currency risk if thefinancing is in foreign currency but theproject earns local currency.

Lenders use stress tests to see if theproject cash flows are robust enough toservice the financial obligations under avariety of adverse economic, financialand operational conditions. They look forthe duration of the credit to be shorterthan that of the project concession.Finally, they assess the adequacy of theterms of the financing (such as interestrates, amortization schedule, etc.) inrelation to the project cash flows.Excessive exposure to currency andinterest rate volatility reduce financial

FALL 200621


Table 1: Sources of Risk Mitigation for African Infrastructure Financings

Political Risk

Credit and CommercialRisk of ProjectParticipants

Limitations

Bilateral Institutions

Export Credit Agencies(ECAs) such as USEXIM;development financeinstitutions, e.g., OPIC

Development FinanceInstitutions such as OPIC,SIDA, DFID, FMO, KfW

Can be subject tonational interest of homecountry

Multilateral

The World Bank Group(IDA, IBRD, MIGA);African DevelopmentBank, ATI, etc.

The World Bank Group(IDA, IBRD, MIGA, IFC);GuarantCo; AfricanDevelopment Bank

Low leverage ofproviders is a constrainton capacity; compliancewith environmental andother guidelines is oftencostly

Private Sector

AIG, Sovereign Risk,Zurich Re, etc

Specialty financialguarantors (AMBACAssurance Corp, MBIA,Financial SecurityAssurance, XL CapitalAssurance, etc);Performance Bonds fromMulti-Line Property/Casualty Insurers

Financial guarantorparticipation subject toinvestment grade ratingfor project before theguarantee; performancebonds can be difficult toobtain for projects incertain areas

FALL 200623



S U C C E S S O N T H E C O N T I N E N T

The well-known organization Sister CitiesInternational (SCI), recently celebrated its50th anniversary, marking a new age ofglobal culture exchange. SCI is a citizendiplomacy network that creates andstrengthens partnerships between the U.Sand international communities.

In order to address African issues, SCI alsocreated subgroup called “U.S-Africa SisterCities” more than a decade ago. Throughthis African Sister Cities project,representatives from 100 U.S. cities and 90African countries, cities, towns or villageshave met over the last fourteen years toexpand their business horizons, enhancecommerce relationships, and create pro-development programs.

“The main purpose of the U.S.-AfricaSister Cities is to create programs throughvolunteering actions between the cities inthe two continents,” said Shirley Smith,Chair of U.S.-Africa Sister Cities.

The U.S-Africa Sister Cities group hasorganized outstanding informationtechnology (IT) and business developmentprojects in Africa to address infrastructureand skills development:

ENERGY INITIATIVES The Network for Sustainable Developmentwas created to provide services and ameans to sustain resources that peoplerequire in their everyday life. In a era ofhigh cost energy and environmentalconcerns, the role of sustainable energysystems play an important role in both thedeveloped and the less developed world.Many African cities might be able toacquire their sustainable development byadopting low cost and environmentfriendly techniques. The Sister CitiesNetwork for Sustainable Development

focuses on different areas such as: buildingtechnology, clean and renewable energy,energy efficiency, and improved energystandards.

INFORMATION TECHNOLOGY Sister Schools Africa

SCI, in conjunction with The AfricaChannel has created the “Sister Schools ofAfrica.” This program allows U.S students,from elementary school through highschool, to explore and exchange cultureswith African communities. The program isbased on “connecting” classrooms in theU.S and Africa through email, video-linkups, and personal visits, enabling bothparties to interact and gain sustainableknowledge about each other’s cultures.

Bringing Technology to Agogo, Ghana

Sister Cities Fort Lauderdale and theGhanaian city of Agogo are working withCitrix Systems Inc, the global leader inaccess infrastructure solutions, to providetechnology access and training to ruralcommunities in Ghana. The project willenable local residents to gain access toinformation and communication that offersimproved healthcare, education, andbusiness opportunities.

WATERDenver- Axum potable water project

The Axum water project was created withthe assistance of Denver Water and theWater and Sanitation Consultancy Group(WSCG) in order to address poor sanitationinfrastructure in Axum, Ethiopia. Axum is aprimary tourist attraction in Ethiopia, butpoor sanitation has threatened the

country’s economy. The WSCG andDenver Water’s first step is to raise $35,000in donations as well as to donate mediumsize (800 to 1200 gallon capacity) septictrucks.

TRADE & BUSINESSDEVELOPMENT Sister Cities and the FTA

The sister cities of Chicago, Illinois andCasablanca, Morocco work with the WorldTrade Center Chicago to promote businessopportunities between the U.S andMorocco. Morocco has a Free TradeAgreement (FTA) with the U.S. Provisionsof the FTA were recently discussed by thebusiness community at the 2005 ChicagoConference. Chicago- based corporationsdoing business in Morocco are primaryexamples of how the agreement is beingimplemented successfully.

Micro-Finance

The sister cities of Pocatello, Idaho andKwaramenguel, Burkina Faso have workedtogether to launch a micro finance projectto assist local small enterprises by providingloans with a payback interest of fivepercent. This has increased loan moneyavailable allowing a greater number ofindividuals to start their own smallbusinesses such as sewing and fisheries.

Currently, there are 103 U.S cities with 94affiliations in Africa, and the number ofmember’s involvement on SCI is increasing.For more information on how to getinvolved visit: http://www.sister-cities.org/sci/getinvolved.

FALL 200625

U.S. and African Cities Partner to Address Infrastructure < By Daniela Mavume >

P A R T N E R S H I P S

FALL 200627



“WHERE IS NIGERIA HEADING?”

Tom Carver

Q U A R T E R L Y C O L U M N


TheAfrica Journal congratulationsMr. Vernon Darko, President &

CEO of Houston-based Trans AtlanticCorporation(TAC) on his nomination asBusiness Person of the Quarter. TACrecently supplied 20 Mack trucks and oiltankers to Nigeria to help build the oiltransportation infrastructure.

Darko began his career in Africa with a tripto Ghana in 1992. His first impression ofthe country was that “there was a lot ofroom for opportunities in internationaltrading.” Since his initial visit to Africa, Mr.Darko has been focused on makingbusiness happen there. He believes thatTAC is making a positive impact on theeconomic and labor workforce on thecontinent.

TAC’s most recent success story in Africa,began as a result of an introduction madeduring CCA’s 2003 U.S.-Africa BusinessSummit. Upon returning from the Summit,TAC made arrangements to visit Nigeria.The trip enabled company representativesto uncover the transportation needs of oneof Africa’s most populous country.

“TAC worked diligently to researchproducts, locate suppliers, and as a result,established a new customer, opened-upopportunities, and helped build the

infrastructure of the Nigeriantransportation industry,” said

Darko.

Although the company has been successfulin Africa, it still encounters challengeswhen doing business on the continent.Darko believes the primary challenge facedby the U.S. private sector is securingfinancing from local (African) banks due tohigh interest rates. The secondarychallenge has been that U.S. companiesare not always eager to complete atransaction in Africa based on thepercentage of closed transactions, and thelength of time required to conclude atransaction.

Despite these challenges, Darkoencourages the U.S. private sector to dobusiness with and invest in Africa. Thereare programs offered by organizations suchas Ex-Im Bank, OPIC, and the IFC thatenable buyers to minimize financing andinvestment challenges. Darko views Africaas “an untapped market with vastresources.” He believes that Africa offersresources rich in quality and quantity, andthat conducting business on the continentproduces a win-win scenario for the U.S.company, the African worker, and thecountry’s potential economic growth.

TAC became a member of CCA to assist itto overcome some of the challenges ofdoing business in Africa. Mr. Darko feelsthat membership in CCA is usefulbecause “the organization creates avehicle for networking with Africanbusiness owners” whom he may not

have met otherwise.

“We support CCA because of itscommitment to keeping Africa at theforefront of trade and development and itsdetermination to not allow Africa to bethought of as the Forgotten Continent,”Darko stated.

Trans Atlantic Corporation is dedicated toproviding products and equipment toenhance sales and productivity forcompanies worldwide. Darko has beenPresident & CEO of TAC for 12 years. Heholds a Bachelors of Science in BusinessAdministration with an emphasis onInternational Business from Lee Universityin Cleveland, Ohio. Darko resides inHouston, Texas with his wife and threedaughters.

For more information on Trans AtlanticCorporation, please visitwww.transatlanticcorp.com.

Business Person of the Quarter: Oracle’s Desi Lopez Fafie

B U S I N E S S P R O F I L E

FALL 200631

M E E T O P I C


I N F O R M A T I O N & C O M M U N I C A T I O N S T E C H N O L O G Y

ICT in Africa: Still Room for Growth

By Mark Ball

The African Information andCommunication Technologies1 (ICT)industry has recently experiencedphenomenal growth. Over the past fiveyears, the penetration of mobiletelephony has averaged 59% annualgrowth, higher than any other region inthe world. The nine largest publiclytraded African telecommunicationscompanies have averaged 993% totalreturn over the past three years. The keyquestion is whether ICT companies cansustain this growth and continue toprovide alpha returns to investors.

In order to deliver sustainable growth,superior returns, and economic impact:(i) ICT companies will need to adoptcustomer-focused business models anddeliver high-quality, innovative productsand services; (ii) African governmentsneed to be progressive and createenvironments conducive for opencompetition, which will ultimately lead togreater innovation and lower prices and(iii) investors need to carefullyunderstand which markets andcompanies pose the greatest opportunityfor alpha returns, for capital to beallocated efficiently.

This is a particularly suitable time foranalysis of the different variables

affecting ICT growth in Africa because,more than ever, African governmentsand private corporations recognize theneed for sound technological capacity inorder to compete in the global arena.The power of high-speed, low costcommunications can only be achievedwhen the rhetoric of public officials andthe capacity of private players aretranslated into action. Several Africanmarkets are on the right track, but thereis need to build on the currentmomentum.

A key barrier to growth is theprohibitively high costs to end-users forICT services in Africa. The relative highcosts of fixed-line, mobile, Internet andbroadband services will negatively impactfurther penetration and growth,particularly in the non-urban and low-income communities, unless Africangovernments and ICT companies adoptprogressive regulations and customer-focused business models.

Fixed-Line Telecommunications

Currently, many African fixed-lineoperators have business models that arenot customer-centric. The poor levels ofaccess and high costs of fixed-linetelephony are well documented. This islargely due to the fact that fixed-lineoperators have historically been poorlyregulated government ownedmonopolies. Fortunately, governmentsacross Africa have become increasinglyprogressive as many African countries areimplementing economic reforms thatinclude the privatization of state-ownedassets. In the last few years, more thanone third of all state-owned operatorshave been privatized, with others slatedfor privatization. Additionally, SecondNational Operator (SNO) licenses havebeen granted in several countries, whichshould introduce competition and

reduce, or at least contain, pricing toconsumers.

Country

Fixed-line Penetration

2000 - 2005 CAGR

Privatization and Regulatory Highlights

Egypt

14%

10.2%

Govt. sold 20% of Telecom Egyptthrough public offering in 2005

Ghana

1.5%

7.9%

Ghana Telecom privatized in 1996; SNOlicense granted same year

Kenya

0.8%

-2.9%

Govt. currently pursuing privatization ofKenya Telkom

Nigeria

0.9%

13.8%

Govt. owned Nitel sold 75% stake toTranscorp in 2006; SNO Globacom hasbeen operational since 2002

South Africa

10.4%

-2.9%

Telkom SA partially privatized in 1997;SNO to launch in late 2006

Tunisia

12.5%

4.6%

Govt. plans to privatize Tunisie Telecomin late 2006

Uganda

993%3-year averagereturn by the nlargest publiclytradedtelecommunicans companies Africa

Communiccosts in Afrrepresent 1individual incompared developed

SUMMER 200633

0.5%

5.5%

Uganda Telecom privatized in 2000;Third National Operator launched in2005

Africa

3.2%

5.0%

Source: International TelecommunicationUnion (ITU)

Sustainable Growth for Fixed-lineOperators

Increased competition, privatizations,and the dominance of mobile telephonycreate an environment where fixed-lineoperators must focus on new andinnovative services beyond just voice.Investment in value-added services,including data services supported by arobust network infrastructure will becritical. Recent examples of such activityinclude:

* Uganda Telecom’s rollout of the firstphase of an IP based Next GenerationNetwork, combining voice, data andvideo services over one pipe.

* South Africa’s Telkom SA plans tospend $2 billion over the next five yearsto upgrade its network infrastructureand invest in Next Generation Networkcapacity.

This type of activity will need to continueif the incumbent operators are to activelyparticipate in the betterment of AfricanICT. The table below highlights theperformance of three publicly tradedfixed-line operators.

Fixed-line Operator

Exchange

Current Price (USD)

1-year Return

3-year Return

Market Capitalization ($US Millions)

Maroc Telecom

Morocco - CSE

$13.00

33.7%

n/a

$11,032.1

Telkom SA

South Africa - JSE

$18.64

-2.1%

228.1%

$10,157.7

Telecom Egypt

Egypt - CASE

$2.02

n/a

n/a

$3,286.4

Source: African Bourses; Data as of July24, 2006; all returns measured in U.S.dollar terms

Mobile Telecommunications

Over the five-year period from 1999-2004 the number of mobile subscribersin Africa grew at an average rate of59%, more than double the globalgrowth rate. Cellular subscribers tookadvantage of greater access and flexiblepricing models from an increasingnumber of carriers. Nearly 85% of allAfrican telephone users use mobile - thehighest ratio of mobile to total telephonesubscribers in the world.

Source: ITUSource: ITU

The key growth driver in mobiletelephony in Africa is the ability formobile operators to provide coveragemore rapidly and cost effectively thanfixed-line operators. Over 60% of theAfrican population is within range of amobile signal, whereas fixed-lines arepredominantly concentrated in majorcities. Private-sector competition in

I N F O R M A T I O N & C O M M U N I C A T I O N S T E C H N O L O G Y

e

o

ionsca0% ofcome, 2-3% in

markets

Theobroma cacao, the cocoa tree, isnative to the upper Amazon Basinalthough its cultivation has spreadthroughout the tropical regions ofSouth and Central America, Africaand Asia. The tree flourishes inwarm, wet conditions and many ofthe countries that are in the uniqueposition to grow cocoa dependheavily on the crop’s successfulproduction to help sustain theireconomies. This is particularly true inWest Africa where most of theworld’s cocoa is grown, and where,for Côte d’Ivoire and Ghana inparticular, cocoa is a major exportcrop.

Yet this dependence is not withoutrisk. The cocoa tree is surprisinglyfragile and each year as much as onethird of the global production can belost to pests and diseases. Worldwidethis threatens more than two millionsmallholder farmers who are at theheart of cocoa production andindividual farmers can lose entirecrops from the incursion of newpests or diseases. With cocoa beansoften the family’s primary source of

cash income, any threat to thequantity or quality of the crop canhave a significant impact on theirlivelihood.

The vulnerable nature of cocoa wasdemonstrated during the late 1980swhen the Brazilian crop wasdevastated by a fungal disease thatspread from the Andean regionturning Brazil from a major exporterinto a net importer of cocoa. Sincethat time, concerned for the futureof cocoa supplies world-wide, Mars,Incorporated has been a leader inthe quest to ensure that cocoa isgrown in a sustainable way for thebenefit of all those involved.

MARS ANDSUSTAINABILITY —ABROAD-BASEDAPPROACHMars is committed to playing its partin economic, social andenvironmental programs that help tosupport the rural livelihoods of cocoafarming communities. The company’scocoa sustainability activities are


A G R I C U L T U R E

THE QUEST FORSUSTAINABLE COCOATo those of us in the developed world, chocolate may

be an everyday snack, but for millions of farmers in

West Africa it is fundamental to their livelihood. More

than three million tons of cocoa beans, the key

ingredient of chocolate, are grown each year, with two-

thirds of this coming from West Africa where it is

estimated that more than ten million people depend on

cocoa for at least part of their income. Sue D’Arcy from

Mars, Incorporated talks about the work that Mars

undertakes to ensure a sustainable cocoa supply chain.

underpinned by mutuality—acommitment to shared benefits - oneof the long held principles that guideits business. The programs are alsodesigned to be broad-based—ieprograms are designed to impact allthe farmers of a particular region—not just a select few.

Mars’ experience has led thecompany to recognise that workingwith others is fundamental toachieving the sustainability that willbenefit all, therefore the companypursues its programs in collaborationwith many stakeholder groups. Mars’current program includes partnerships withexperts from the wider global cocoaindustry, scientific institutions, multilateraland bilateral donor organisations,producer country governments,environmentalists, not-for-profitorganisations and farmers’ organisations.Individually and collectively the partnerswork to share knowledge and resources ina bid to deal with the challenge ofgrowing quality cocoa under positiveenvironmental and social conditions whileachieving a viable economic return forfarmers and their families.

This broad-based approach to improvingcocoa farming techniques and protectingthe tropical environment is focused onhelping farmers get the most out of theircrops while supporting their families andcommunities, as well as protecting andenhancing the rich biodiversity of theenvironment in which cocoa is grown.

MARS PROGRAMS IN COCOAGROWING COUNTRIESMars Cocoa Sustainability Programsoperate throughout the cocoa-growingworld. In West Africa it is estimated thatthere are in excess of 1.5 million cocoasmallholders, each farming 1-2 hectares ofland with yields sometimes as low as250kgs per hectare. Here agro-economicprojects seek to improve farmers’ incomesand reduce their losses to pests anddiseases; social programs support

education; and environmental projectsfocus on improving and expanding thebiodiversity benefits related to growingcocoa.

One partnership in Africa, the SustainableTree Crops Program (STCP), is operatedunder the auspices of the InternationalInstitute for Tropical Agriculture withfunding from a range of partners includingthe US Agency for InternationalDevelopment and other industry members.A key element of this initiative deliversrelevant agricultural skills to cocoasmallholders through a program of farmerfield schools, literally schools without walls.Within this formal curriculum farmers learnskills relevant to their direct needs. Results,in particular increases in farmer incomes,have been very positive. In the first phaseof the STCP more than 26,000 farmers inCote d’Ivoire, Ghana, Nigeria andCameroon benefited from the schools.

As well as productive farming methods thestudents learn about post-harvesttechniques to improve quality, health andsafety on the farm and develop co-operative working practices as theyprogress to graduation from the program.A socially oriented element of the programraises awareness of the importance ofschooling for the children of cocoacommunities and also the risks associatedwith HIV/AIDS.

THE MARS CENTER FORCOCOA RESEARCH

Mars Incorporated is the only majorchocolate company with its ownfarm-based, fundamental cocoaresearch facility. Since 1982 Mars hasoperated the Mars Center for CocoaScience at Almirante Farm in Bahia,Brazil.

Located in a major cocoa-growingregion, work at Almirante is focusedon developing and disseminating tolocal smallholder farmers bestpractices in cocoa production, ondistributing improved cocoa plantingmaterials and investigating new

methods to control pests and diseases.

Research work is not confined to Almiranteor Brazil. In a unique public-privateresearch partnership Mars works with theUS Department of Agriculture researchingcrop resistance to pests/diseases anddeveloping environmentally friendlybiological controls

The work is shared to the benefit of allcocoa growing interests. Last year adelegation of farm-trainers and teachersfrom Côte d’Ivoire and Ghana washosted at Almirante. The enthusiasmgenerated by a stimulating learningenvironment ensured that skills weretransferred to the benefit of the WestAfrican cocoa farmer.

SUPPORT FOR COCOAFARMING COMMUNITIES INWEST AFRICAIn Côte d’Ivoire, the world’s biggestexporter of cocoa, Mars is working inpartnership with Winrock International, anot-for-profit organisation dedicated todelivering educational opportunities indeveloping countries. With Mars fundingand Winrock expertise a vocationaldimension has been added to thecurriculum at Adzope High School, in theheart of the cocoa-growing region.Whilst learning about agriculture,students also have the opportunity todevelop important life skills.

As a member of the global cocoa and

FALL 200635

A G R I C U L T U R E


The sheer quantity of childrenbeing affected by HIV/AIDS in

Africa is staggering. An estimated 13million have lost either one or bothparents1. As the overwhelming majority oforphans and other children affected byHIV/AIDS are living with immediate orextended family members, the safety andwell-being of these children dependslargely on the ability of these relatives toprotect and care for the expandedhousehold. Without economicstrengthening, many households andcommunities are unable to access basichealth care and appropriately care fororphans and vulnerable children.

Project HOPE, an international non-profithealth education organization, isconducting a five-year program to providesustainable economic strengthening forfamilies caring for orphans and vulnerablechildren (OVC) in Mozambique andNamibia. Project HOPE’s approach toexpanding the coping strategies ofhouseholds that are supporting and caringfor OVC combines economic strengthening

activities with targeted education andimproved access to OVC services viacommunity volunteers.

The intervention has three components.The first component provides micro-loansto caregivers to engage in small-scalebusiness activities which will generateincreased income and financial resources.The second component provides thecaregivers with education and access toinformation and resources to help themsupport the needs of all children undertheir care, including orphans. Thiseducation encompasses a variety ofdomains including household nutrition,health, parenting skills, and bereavementguidance. The final component establishesa community-based network of volunteersthat can give on-going support andassistance to caregivers and orphans byproviding peer counseling and referrals tospecialized services.

A baseline survey was conducted using astratified random sampling methodology(Lot Quality Assurance Sampling) with 95

randomly selected households in targeteddistricts with high HIV prevalence. Thesurvey focused on coping strategies ofcaregivers and needs of OVC. In Namibia2,the majority (95%) of caregivers oforphans are in economically activehouseholds. Furthermore, much higherproportions of households are caring fororphans than official statistics suggest, with76% of households surveyed in thesetargeted districts caring for orphans.Caretakers reported that 34% of thechildren in their households had lost one orboth parents, as compared to the officiallyreported national rate of 11%.Households caring for orphans were caringfor an average of 2.5 orphans.

The overwhelming response from familiescaring for OVC focused upon theeconomic demands of the expandedhousehold and its impact on all aspects oftheir lives: inability to purchase thequantity of food they need, difficulties inpaying for school fees and uniforms,inability to access needed health servicesbecause of high cost, and other related

ECONOMIC STRENGTHENING AT THE CORE OF ORPHAN SUPPORT< By John Bronson, MA; Renslow Sherer, MD; Sandra Dalebout, MPH; Alice Roussaux, MD, MSc; Nelson Prada, BS >

H E A L T H

FALL 200637

constraints. Fifty-six percent of householdsin Namibia reported their income was notsufficient to meet their needs for morethan 3 months in the past year, with over25% having to sell assets in order to havemoney. Over one third of households inNamibia could not seek medical serviceswhen they needed to, almost always duefinancial reasons (86%). Additionally, only41% of teenagers in Namibia had 4 ormore meals in the past two days.

Finding from Project HOPE’s program haveimplications for employees and employersin areas heavily impacted by HIV/AIDS. A

sizeable proportion of the workforce islikely responsible for the support and careof OVC. Employees may be directly caringfor orphans within their household orproviding economic support to thecaregiver. Project HOPE found that 89% oforphan caregivers in Namibia are relyingupon regular receipts of cash and goods.In either case, the income earner is criticalto the quality of care through theircontribution of resources. The obligationsand needs of the extended household mayaffect workforce productivity. Recognizingand responding to these challenges

through collaboration and linkages withorganizations that can provide assistanceand support to help individuals andhouseholds address the needs of OVC willlikely yield a more productive workforceand help strengthen prospects for the nextgeneration. Project HOPE and others areleading the way in helping AIDS orphansthrough economic development.

This article was made possible throughsupport provided by the Office ofHIV/AIDS, Bureau for Global Health, U.S.Agency for International Development,under the terms of Award No. GPO-A-00-05-00019-00. The opinions expressedherein are those of the authors and do notnecessarily reflect the views of the U.S.Agency for International Development. ¥

John Bronson—serves as Project HOPE’sDirector for Village Health Bank Programs, anintegrated micro-credit & health educationmethodology implemented in 6 countriesworldwide. Mr. Bronson has worked in thisfield for over 13 years including 3 years withmicro-enterprise development projects inBotswana. He holds a B.A. in BusinessAdministration and a Masters degree inInternational Development. John Bronson canbe reached on [email protected] orwww.projecthope.org

Continued on page 39

H E A L T H

Young school boys in Ile, Namibia learning basket weaving as a micro-enterprise project.

1 4 USAID, “Sub-National Distribution and Situation of Orphans: Countries Targeted by the President’s Emergency Plan for AIDS Relief”, 20032 Data from the Mozambique survey are not yet available.


Investigations at the Bottom Line: LinkingCorporate Governance to SustainableDevelopment

By Leslie Fox, Vice President, CitizensInternational, with contributions fromGlobal Strategies Group

As an increasing number of U.S. andinternational companies invest forgrowth across Africa, many seniorexecutives are realizing that being a‘good corporate citizen’ is not onlyimportant in promoting social andenvironmental “good”, but can alsobring significant benefits to companiesthemselves by helping them do “well”on the bottom-line. This article examinessome of the key issues and emergingtrends surrounding Corporate SocialResponsibility (CSR) and comments onthe role of Corporate Governance as afactor in program success.

CSR originally developed and evolvedfrom the private sector realization thattraditional business values and practicedo not necessarily lead to desiredbottom-line economic results. Somecompanies arrived at this conclusionthemselves; others have been driven tothis position in reaction to publicpressure. Today many organizations seebest practice CSR programs as addingsignificant value beyond the corebenefits of regional development andpoverty reduction.

Two driving forces underpin this newCSR thinking, which links sustainabledevelopment to sustainable corporations:

1. Previously, the private sector focusedalmost exclusively on the bottom lineand accountability to shareholders.

Businesses often ignored the localcontext and social and environmentalimpacts of their operations, creatingconditions ripe for local conflict,tarnishing company reputations andnegatively impacting the bottom line.Typically, these businesses did little topromote sustainable social and economicdevelopment at the individualcommunity level or across society ingeneral.

2. Irrespective of external pressures, asmall group of progressive-mindedbusinesses, including local companiesand some of the larger multinationalcorporations, saw that moving beyondthe narrow confines of traditionalbusiness models was not only critical totheir own survival but also good businesspractice.

The twin factors of external pressuresand progressive thinking gave birth tothe notion that corporate sustainabilityand sustainable development were notincompatible ideals, but in fact sharedthe same commitment to addressingissues of social development andenvironmental conservation whileenhancing corporate performance.

In a new book entitled The Triple BottomLine, authors Andrew Savitz and KarlWeber call finding the ‘common ground’or overlap between business interests(shareholders) and public interest(stakeholders) as ‘the sustainability sweetspot’. This notion represents a markedshift from the traditional emphasis oncreating shareholders wealth to aligningsocial and environmental concerns witheconomic ones (the triple bottom line). Itis only when companies take bothshareholder and stakeholder interestsinto consideration that they can developan overall understanding of their

business calculations.

Despite this advance in corporatethinking, it is important that wecomment on the wider context in whichthese companies operate andunderstand how corporate governancecan also impact CSR programperformance. Corporate governanceshould not be viewed as a phenomenonthat is independent of the environmentin which business operates. Rather, itshould be viewed in a broader social,economic and political context thataffects and is affected by the localcontext.

To understand how corporategovernance and core thinkingdeveloped, we need to look at some ofthe debates and trends that haveoccurred over the last two decades. In1990, after three decades and billions ofdollars spent on social and economicdevelopment, there was still very littleempirical evidence suggesting thatforeign development assistance haddelivered any sustainable results. Oneschool of thought suggests that a factorcontributing to this lack of visible resultsis how governance was perceived.

Throughout the ‘90s, good governance-within a political context-wascharacterized by the accountability ofpolitical leaders to their constituents, andmore specifically the decisions they madeand the environment of transparencysurrounding those decisions. Goodgovernance was often seen as the lastbest means of ensuring good publicpolicymaking and the effective deliveryof public services. Together theserepresent fundamental conditionsnecessary to achieve sustainable

C S R

development objectives.

The key question that was being asked,however, was how do you get goodgovernance?

The answer, as viewed by both politicalscientists and ordinary citizens, wasDemocracy. This was not seen simply asa revolutionary idea, but was perceivedas the political ideology most likely toensure good and effective governance,and by extension, sustainable social,economic and environmentalimprovements.

Democracy placed great importance onthe rights and obligations of citizenshipand the participation of citizens, civilsociety and the private sector, togetherwith the role of governments in makingand implementing decisions that affectedall members of society.

Ultimately, the term ‘democraticgovernance’ was coined to convey thenotion that successful democracies,sustainable development and goodgovernance are dependent on makingand implementing public decisions bybusinesses, government and civil societypartnerships to achieve collective orsocietal goals.

If ‘democratic governance’ is to besuccessful today, what are theimplications of this broader view forcorporations and corporate governance?

A key challenge that organizations faceis ensuring that decisions associated withcorporate governance do not take placein a vacuum. One way to achieve thecommon goals of good governance,democracy and sustainable social,economic and environmentaldevelopment, is to internalize what has

previously been external to corporategovernance structures. For example, byengaging a wide array of stakeholders,such as workers, their families,communities and other members of thesupply chain, into a governance process,corporations will ensure that morediverse views are heard in the boardroomwhile engendering a voluntarycommitment to accountability andtransparency as core values andpractices. This is distinctly different fromthe view that shareholder interest is theprincipal driver behind corporatedecisions.

Another challenge is the fact that a smallnumber of multinational or largenational companies dominate severalmarkets across Africa. This often leads toa situation in which economic power isconcentrated in the hands of a fewcompanies. When this situation iscombined with public sector involvement(e.g. government shareholdings in largecorporations) it can lead to weakcorporate governance, whichundermines the notion of a level playingfield and free market competition andultimately distorts the rational allocationof scarce private and public sectorresources for economic growth andbusiness development.

So the real question then becomes ‘whatcan businesses do to address theseproblems?’

If organizations are committed todeveloping good governance and CSRprograms, there are a number of actionsthey can take to develop and implementthese programs:

1. While it may seem counter-intuitive,large multinational and nationalcorporations can help broaden the baseof the economies in which they operate

by helping to accelerate the creation andgrowth of new local enterprises. Buildingnew enterprises and facilitating theaccess to credit among existingenterprises, are two important areas inwhich large companies can contribute tosociety and economic development.Especially if assistance is provided byleveraging their internal supply chains.

2. Companies interested in deliveringgood governance can also influence thecreation and implementation of normsand practices to measure corporateperformance in adhering to recognizedstandards of behavior in the areas ofsocial, economic, environmental, andpolitical life. The Global ReportingInitiative, the Extractive IndustriesTransparency Initiative, Publish What YouPay, Forestry Certification Requirementsand the OECD Principles on CorporateGovernance are just a few examples ofthe tools available.

3. More companies, not justmultinationals, need to be progressiveand creative in their CSR thinking andpractices. There is no question thatcompanies have moved away from thetraditional programs of charity andphilanthropy that are typically narrow inscope, to more coherent social,economic programs that are consistentwith broader national developmentpriorities. Where feasible, smallercompanies should develop a betterunderstanding of such priorities anddevelop CSR initiatives that contribute tothese more holistic national or regionalobjectives.

4. Companies can consider expandingthe scope of their programs to focus onnational issues and concerns rather thaninitiatives that focus on the workplacethat stop at a company’s gate orboundaries.

5. Those responsible for corporate CSRprograms should also review the value ofpartnering with international aidagencies for certain projects. The key

FALL 200639

C S R


F O U N D A T I O N S

FOCUS ON FOUNDATIONS: MONSANTO

FALL 200641

F O U N D A T I O N S

< By Jennifer Marcy >

Theinternal conflict ravaging thewestern region of Sudan has

affected the lives of millions, and hasbrought the plight of the people ofDarfur to the consciousness of the world.Due to the conflict, hundreds ofthousands of people have been forcedfrom their homes and are now living incamps for Internally Displaced Persons(IDP), where they have been dependenton the support of the internationalhumanitarian community to provide fortheir basic needs, including food,clothing and shelter. Compounding thetrauma of being displaced from theirhomes, IDPs face the threat ofdisempowerment and apathy that cancome from complete reliance on othersfor their means of survival, making itharder to readjust upon eventual returnor resettlement elsewhere.

Rather than perpetuate a systemthat fosters dependency, the

international developmentand humanitarian

assistance organizationCHF International

has beenimplementing

over 20 differentlivelihoodsprojects inseveraldifferent IDPcamps inNorth and

South

Darfur since 2004 that are enablingvulnerable community members toimprove housing conditions, nutrition,sources of income and security on theirown. This approach addresses both theimmediate needs of the affectedpopulation, while laying the foundationfor stability, prosperity and economicdevelopment over the long-term.

There are projects increasing foodsecurity by providing land, tools,pesticides and technical assistance forgrowing crops, other efforts areimproving veterinary care for livestock,new services are assisting womenvictimized by violent attacks, and muchmore.

While all of these efforts compriseessential components of livelihoodsassistance, CHF staff also recognized theneed for targeting women and childrenwith projects that would bolster incomegeneration while fostering security. IDPwomen generally have limitedopportunities to earn money inside thecamps. Often, they are forced to ventureoutside the camp boundaries in search offirewood or palm fronds to sell, wherethey face the ongoing threats of violentphysical and sexual attacks.

As a result, in addition to the otherlivelihood projects made possible throughthe American people through the USAgency for International Development’sOffice of Foreign Disaster Assistance(USAID/OFDA), CHF constructedcommunity centers in four of Darfur’smajor IDP camps that are providingcritical services to women and theirchildren.

While the CHF centers are home to avariety of activities-including literacyclasses, health and hygiene education,

S A I B L

FROM DARFUR TO SANTA FE: A JOURNEY OF EMPOWERMENT


fuel-efficient stove production andchildcare services- mat and basketweaving are considered by many of thewomen to be the most helpfulinterventions. In one camp alone, over250 women produce baskets and othertraditional goods, while nearly 360women are employed as mat weavers. Todate, the women have producedthousands of baskets and nearly 100,000grass mats, the latter of which CHFInternational purchases and uses toenhance shelters for IDPs living in thecamps in North and South Darfur.

Meanwhile, one of the organization’sdepartments, The Crafts Center at CHFInternational, which focuses onimproving the lives of low-incomeartisans, is working to establish Westernmarkets for the baskets by collaboratingwith fair trade organizations that buyand import goods produced by artisansin developing countries. One suchpartner is The Amber Chand Collection:Global Gifts for Peace andUnderstanding, a mission-based retail

enterprise that supportstalented craftswomen inregions of conflict and post-conflict(www.amberchand.com).

Recently, one of the womenweaving baskets with CHFas a means of incomegeneration, Mariam AdamAtim Abbakar, made anunprecedented andincredible journey fromKalma Camp in Darfur,Sudan, to Santa Fe, NewMexico.

Mariam was selected out ofover 200 applications toattend the 2006 Santa FeInternational Folk ArtMarket, a unique forum forartisans from around theworld to sell their crafts,with the ultimate goal ofpreserving world culturesand creating economic

sustainability. Mariam was sponsored toattend the market bythe Crafts Center atCHF International andthe Santa Fe Folk ArtMuseum Foundation.The opportunity toattend the market notonly gave Mariam achance to sell her craftto eager U.S. buyers,but it also provided aforum for her to discussher life in the camp andgenerate awarenessabout the crisis to alocal Americanaudience. Mariam’sparticipation in themarket put a humanface on the horrificconflict, and it also gavethe attendees anopportunity to directlysupport victims of theconflict through the

simple act of purchasing a one-of-a-kindpiece of art.

Mariam, a widowed mother of two, isjust one of hundreds of thousands ofwomen living in IDP camps in Darfur,who is slowly rebuilding her life aftersurviving horrific violence and constantthreats in the camps. She said, “I reallyenjoyed the opportunity to meet artisansfrom all over the world and sell mybaskets in the United States.” Mariamhopes that the people who purchasedher baskets or those who heard abouther story in the local media will keep thepeople of Darfur in their hearts andminds, and work to change the situationshe and so many others are facing. Oneday, Mariam says, she simply dreams ofreturning home to her village, andraising her children in peace.

For more information about the Crafts Centerand CHF International, please visitwww.craftscenter.org andwww.chfinternational.org

S A I B L

FALL 200643

ADVERTISE !

The leading publication linking the U.S. andAfrican business communities

Advertising with The Africa Journal provides points of contactto a well-connected market, including consumers and policymakers worldwide. Our audience includes CCA corporatemembers; members of the United States Congress; U.S.government agencies; United Nations representatives; Africanembassies in the U.S.; U.S. embassies in Africa; globalorganizations; international media covering Africa;foundations and a host of NGOs engaged in Africa. Circulationalso includes distribution at prominent CCA events.

Be a part of investing in thefuture of Africa

Contact CCA’s Communications Department at(202) 835-1115 or [email protected]

for ad deadlines, placement and payment information.

C E L E B R I T Y


Ndary Lo “The long march towards change”

Contemporary African Arts Evolve < By Victor Barnes >

Tingatingawas theorigin of

the naive style of painting that wouldlater take his name. He started paintingin 1968, and although his career wasended prematurely in 1972 with hisuntimely death, his style inspired hisfollowers to establish the TingatingaSchool of Painters and the TingatingaArts Co-Operative Society that continueto flourish today. The Tingatingamovement constitutes a genuine form ofcontemporary art, original to Tanzania,with its unique form of painting usingbicycle paint on masonite boards.Edward Saidi Tingatinga was born in1932 in Mindu village in the remotesouthern Tunduru district of Tanzania. Hehad only four years of primary school,and in the 1950s, he left his homedistrict and headed north to Dar esSalaam, where he worked as domestichelp for a British civil servant. During histime in Dar es Salaam, Tingatingabegan to seek creative outlets andadditional income, first as a member of amusical group, and later as a self-taughtartist. His motifs generally consisted ofhighly colorful and decorative images ofbirds (the most common subject), wildanimals, daily life, and spirit figures(shetini, mganga, and mizimu). They arealways painted in bright colors, from aflat dimensioanl perspective. Originally,Tingatinga’s wife sold his paintings nearMorogoro Stores in Dar es Salaam. In1970, Tingatinga and his paintingswere introduced to the National ArtsCompany, a subsidiary of the NationalDevelopment Cooperation. The companybecame interested in his paintings andbecame the sole outlet for the sale of hiswork. This arrangement led to adramatic increase in popularity of theseprimitve laquered square paintings, andthe prices rose rapidly, as did

international recognition. With hisgrowing comercial successs,Tingatingabegan to expand the small circle ofrelatives who were his first students(Adeuzi Mandu, Simon Mpata, CasparHenrik Tedo, Ajaba Abdallah Mtalia andOmari Amonde), to include a growingnumber of followers eager to learn histechnique and style of painting. Just ashe was experiencing success, his life wascut short. In 1972, Edward SaidiTingatinga was shot by the police in Dares Salaam; the exact circumstances arenot known, although by all accounts itwas accidental.

Today, the heart of Tingatinga art hasbeen entrusted to the youngergenerations of painters, and is centeredin the Tingatinga Arts CooperativeSociety. The cooperative, which numbersabout 50 members, is still based nearthe Morogoro Stores in Dar es Salaam,where Tingatinga’s works originally sold.Among his first students, only his halfbrother, Omari Amonde, is still painting.

Edward Tingatinga was buried at theMsasani Mikoroshoni cemetery in Dar esSalaam. He died at the age of 40 leavingbehind his wife and two children, Daudiand Maritina. Daudi is presently anactive member of the Tingatinga ArtsCo-operative Society while his sister,Maritina, is married and lives in Dar esSalaam. Their mother died in 1995.Although Edward Said Tingatinga isdead, his memory remains alive in hiswork and the continuing work of hisfollowers.

C U L T U R E

SUMMER 200645

THE ART OF TINGATINGA < By Victor Barnes >

SUMMER 200646

SOUTH AFRICA’S FIRST ISLAMIC

T R A V E L

SUMMER 200647

-FRIENDLY GAME RESERVE < By Larry Luxner >

T R A V E L


S T A F F P R O F I L E

SPRING 200649 SPRING 200649

C C A P R O F I L E

SPRING 200650

M E M B E R S H I P A T A G L A N C E

SUMMER 200651

3MABB Vetco GrayAbbottAcademy for Educational Development

Access Bank ACDI/VOCAAcrow CorporationAfrican Wildlife Foundation AfricareAllAfrica Global MediaAmerada Hess CorporationAmerican Global Data Exchange Corporation(AGDE Corp.)

American Petroleum InstituteAmerican Soybean AssociationAnadarko Petroleum Corporation

Archer Daniels Midland Company

Baker & Hostetler LLPBanro CorporationBearingPoint Inc.Ben Ziraba NyendeBKSH & AssociatesBlack & VeatchBlack Enterprise Magazine *Bristol Myers SquibBroadReach HealthcareCargillCassidy Caterpillar Inc.Chemonics International ChevronTexacoCHF InternationalCisco SystemsCitigroup Inc.Coca-Cola AfricaCohen & Woods International IncComputer Frontiers Inc.ConocoPhillipsControl RiskCooper Cameron CorporationCounterpartCredit Renaissance PartnersDaimlerChrysler A.G.De Villers Inc.

Development Alternatives Inc.Development Finance International

Devon EnergyDikembe Mutombo FoundationDoley Securities Inc.Emerging Markets GroupEmerging Markets PartnershipEmerging Sun, LLC EnerGulf ResourcesEquinox PartnersERHC Energy IncEthiopian AirlinesEvergreen International AirlinesInc.

ExxonMobilFamily Health International (FHI)Finesse DiamondsFlexMed-Care Corp.Fluor Daniel Inc.Futures GroupGAPCOGeneral Electric CompanyGeneral Motors CorporationGlens Care Africa LimtedGlobal Industries Ltd. Global Strategies Group Goldwyn International Strategies

Good Governance GroupGood Works InternationalGrupo Valentim AmoesHalliday FinchHarris CorporationHewlett Packard LtdHogan & Hartson LLPHuman Resource DevelopmentInstitute IncHunton & Williams LLPIBMIDEAS Inc.Institute of Human Virology (IHV)Institutional InvestorIntels Integrated Logistic Services

International Business InitiativesJ.D. Stark & Associates Inc.

JA Worldwide Jean-Raymond Boulle Corporations

JHPIEGOJohnson & JohnsonKellog Brown & Root (KBR)Kenya AirlinesKerr-McGee Oil & Gas Co.KHAFRA EngineeringKosmos EnergyKRA CorporationLazare Kaplan International Inc.LDB ConsultingLeBoeuf,Lamb,Greene &Macrae, L.L.PLiving Water InternationalMadagascar World Radio Manchester Trade/CTD AmericaMandT BankMarathon OilMarriott International Inc.Mars Incorporated Mayfair Mining & Minerals, IncMerck & Co. Inc.Meticulous ToursMetrica Inc.Microsoft CorporationMillennium III Corp.Minority Business Development Monsanto CompanyMotorolaMoving Water Industries Corporation

MPRINoble Energy IncNoel GroupOAIOccidental InternationalCorporationOraclePan African Capital Group LLCPanapressPatton BoggsPegasus Energy c/o The Ballard Group

PennWell CorporationPfizer Inc.

Pioneer Hi-Bred International, Inc.Pioneer Natural Resources Pro-consult,Inc Project HOPEQualcomm Inc.RaytheonRMTGSAICSamuels International AssociatesInc.

Schaffer Global GroupSeacor Holdings Inc.Seald SweetShellSouth African AirwaysStarbucks Coffee CompanyState of MarylandStrathmore University Structured Credit International Sunoco Inc.TCC GroupTechnoserveThe Boeing CompanyThe Dow Chemical CompanyThe Fermoy GroupThe Liberia Company The Palomar Consulting Group, Inc.

The Whitaker GroupTrans Atlantic Corp.Trend TVUnited Bank for Africa US FED Group ( Africa)Valent BioSciencesVanco Energy CompanyVirgin Nigeria Airways Wilson Global Communications LLC

Worcester Polytechnic InstituteWorld Alliance, Inc.World Cocoa FoundationWorldspace CorporationZephyr Management L.P.

T H E C O R P O R A T E C O U N C I L O N A F R I C A M E M B E R S

B O A R D M E M B E R S 2 0 0 6 – 2 0 0 7

James AndrewsKellog Brown & Root, Inc.Larry Bailey(Treasurer)LDB Consulting Tom BarryZephyr Management L.P. Claudette ChristianHogan & Hartson LLPFrances CookPegasus Energy c/o The Ballard Group

Harold DoleyDoley SecuritiesNeil Duffin(Vice Chairman)ExxonMobil Production Company

Frank Fountain(Chairman)DaimlerChrysler Corporation Thomas GibianEMP Africa FundSteve GuidryMarathon Oil CompanyBill GuytonWorld Cocoa FoundationStephen HayesThe Corporate Council on Africa(President) Barbara KeatingComputer FrontiersWalter KansteinerScowcroft Group

George KirklandChevronDesi Lopez-FafieOracle Carlton MastersGoodWorks InternationalHenry McGeeConocoPhillips Jeffrey MorganMars, Incorporated John NoelNoel GroupGeorge OtchereScience Applications InternationalCorporation

K. Earl ReynoldsDevon Energy

Tim RichardsGeneral ElectricPhillip de St. AubinBoeing Company David StarkJ.D. Stark and Associates Jeffrey SturchioMerck & Co., Inc.Jerry SteinerMonsanto CompanyMaurice Tempelsman(Chairman Emeritus)Lazare Kaplan International Terra ThomasHRDIEarl YoungJR Boulle Companies

C C A M E M B E R S , B O A R D & E X E C U T I V E C O M M I T T E E

african infrastructure: bridging the gap · the genx engine is the sole jet engine with a front fan...

Documents