Business in Maputo...

Thoughts from a few days ago in Maputo...

One of the coolest things about doing business in Africa is that you have relatively easy access to the most influential people and projects in a way that just doesn’t happen in any other place in the world. To illustrate, Agrolink – a very young company both in terms of its track record as well as its shareholders (average age of 29) – has the unique privilege of working on some of the most important projects in Mozambique, including a start-up business involving the country’s former president, and work with an institution that has as its main shareholder the former first lady of both Mozambique and South Africa. In the majority of the business that we deal with, we meet directly with the Director right from the start. No run-around necessary to get a direct line for the person in power, no bullshit preliminary meetings with executive assistants or company representatives. We are able to go straight to the top in a way that I’ve never experienced in my professional life in the US or in Brasil.

While definitely a very positive scenario for me and Ricardo and all of our associates, I recognize that the state of the African business world is a mixed bag. On the one hand, it is a reflection of the continent’s colonial legacy and the consequential racial and economic distortions that continue to shape business interests in most places. Not only is monetary wealth concentrated in a small percentage of the population, the vast majority of Africans also miss out on the opportunity to obtain a quality education (any education, really) and to develop the skills necessary to capitalize on the tremendous resources and potential that exist here.

On the other hand, I feel like having access to the big deals and opportunities here is a fair reward for those willing to take the risks associated with business in Africa. While the access is relatively easy, actually realizing a project is definitely not. There are multiple barriers along the way to making a business feasible, much less successful, in any part of the world; in Africa, these barriers are a thousand-fold, not only in terms of the investment environment but in terms of infrastructure and overall quality of life.

It is a complex and unequal situation that, among other things, has attracted heaps of attention and donations from the international community. While this aid is well-intentioned, and many times specifically earmarked to support local business development in Africa, I increasingly believe that it does more harm than good and, in the end, contributes to keeping potential businessmen and women uncompetitive and dependent on others for survival.

I frequently ask myself where that line is that separates the beneficial from the harmful in terms of conducting and supporting business in Africa. What activities constitute a continuation of that vicious cycle of exploitation and inequality that has plagued the continent for so long? Is it actually possible for an outsider, be it a company, an NGO or an individual, to come to Africa and not inadvertently contribute to the problems? How are Agrolink or Guarani or any of the other projects we are involved in different from those that I criticize so openly?

Some days I find myself horribly cynical with regard to this whole thing. I feel like Africa and her people are destined to be poor and sick and dependent forever. I see greedy companies, and market-distorting subsidies, and endless corruption, and failed project after failed project after failed project. It seems like a major downhill battle, one that will only be won in the end by the same people that already have the money and power in Africa. It’s tempting to blame the misery here on the Western world, but I see many, many problems stemming from and complicated by Africans themselves. A culture of dependency is widespread in Mozambique; after hundreds of years looking to someone else to fill your pockets and structure your life – first to colonial regime, then the communist-inspired state government, then the international aid pouring in from every which way – people are not entrepreneurial, not market-oriented, and in general wait for a handout to fix all their problems. There is widespread corruption on the part of the African officials that complain so much about how they are victims of history. If they weren’t so intent on filling their coffers illegally, there would be much more money to go to the people in their countries that actually need it. Of course, there are exceptions to the rule, but this is how I see the world on my cynical days.

Other days I am filled with hope and excitement. It is amazing to work in a place where you can make a real contribution to the development of an entire country. Because of our efforts, Mozambique will likely become a major player in the African tea market (it was the continent’s third-largest tea producer before the civil war from 1975 – 1992). Literally thousands of small-scale farmers will have better incomes and access to technical support thanks to Agrolink’s business development activities in the agricultural sector. If our current proposals go well, Mozambique may well become the largest exporter of bananas to both South Africa and Pakistan, and a major timber operation will be established that will launch Mozambique in the international tropical wood furniture industry. These are real projects with real, measurable benefits…

Today has been an optimistic day for me in terms of our business efforts. Ricardo and I attended a trade conference this morning that brought together players in the financial services and fundraising sectors. Ricardo made a presentation about Agrolink and the recent partnership we established with an American NGO called TechoServe (finding business solutions to rural poverty – www.technoserve.org). We networked with the movers and the shakers in the industry, and made lots of great contacts with banks, development organizations, and even a venture capital fund that is wholly devoted to Mozambican projects. The coolest part is that all of these senior executives and government officials looked at Agrolink – and by extension me and Ricardo – as their peers.

A funny part of the conference networking was that at least seven people flat-out asked if Ricardo and I were married! Maybe it was the fact that we were both wearing gray power suits…maybe it was our matching carioca accents…maybe I had “I’m Sleeping with My Boss” stamped in red on my forehead and somehow missed it in the mirror when I was putting on my makeup. Who knows. Whatever the reason it was amusing, especially since nobody has explicitly asked either of us if we are a couple since we started working together/dating back in May.

Speaking of work, I should get back to it. We have an antsy client that Ricardo has been “managing” for the last several weeks, and the only part of his US$ 20 million project proposal that is not yet finished is the narrative – ou seja, my responsibility…

Rico and I arrived safely in São Paulo yesterday evening. I met his dad, brother, and their respective wives and family. We had a fabulous gourmet Christmas dinner that his dad cooked and exchanged gifts. To my surprise, there were a couple under the fake tree for me, too!

We are driving to Rio this afternoon with Rico's brother and wife, then it's on to a good night's sleep in the casa rosa!!