With billionaire mining magnate Patrice Motsepe at the helm, the newly crowned African champions Mamelodi Sundowns are not short of resources.
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Adding up all the presumed transfer fees and estimated running costs over the 13 years since he took ownership, Motsepe has invested more than R150 million ($11 million) in the club, a sum far in excess of what any other owner, among the 16 teams that make up South Africa’s Premier Soccer League (PSL), has put into the game.
The money took a long time to show any kind of return but Sundowns, ironically after a round of recent belt-tightening, can now look to run their operation independently after the windfall of their recent success.
Winning the African Champions League in October has ensured record earnings for the Pretoria-based club, although Motsepe is giving a fair chunk of it to his players as a bonus for their achievement.
In the Champions League, Sundowns took home a purse of $1.5 million for winning – by far the biggest sum the club has ever earned from a single competition. That is, indeed, true of any South African team.
The biggest prize in the domestic game is the R10 million ($750,000) that the winners of the league earn.
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The Champions League purse is to be shared among the players, said Motsepe in the wake of their success in Egypt, where Sundowns overcame hostile conditions in a display of resilience to win the title – only the second time in 21 years that a South African club has done so.
It is the biggest achievement in club football on the continent and brings with it a raft of other opportunities.
First, Champions League success means participation in the Fifa Club World Cup in Japan at the end of the year.
The competition, featuring all the continental champions, also offers prize money with a minimum of $1 million just for participating and going up to $5 million for the winner.
But unlike the Champions League campaign, where the cost of traveling through Africa can be onerous, Fifa pay all costs, including supplying 35 business class return tickets to Japan per club.
Another $1 million would be well received, although the costs of South African football are such now that it is pretty swiftly shredded through.
Not three months ago, Sundowns paid R11 million ($820,000) to sign silky midfielder Sibusiso Vilakazi from Bidvest Wits; a record fee for an internal move in the South African market. They also bought players from Bloemfontein Celtic and Free State Stars, and imported a striker from the Ivory Coast in a bid to strengthen their squad for a rigorous campaign to come.
To do so, the club has to get extra funding from Motsepe.
It is not just for the transfer fees, but the wages needed to lure these players to the club as well.
Bafana Bafana fullback Anele Ngcongca had opportunities to stay in Europe when it became clear he would leave Belgian side Genk, and also attracted interest from the lucrative Chinese Super League. But he has been lured to Pretoria with the promise of not only competing for silverware, but also a hefty pay-packet as he heads towards his thirties.
No PSL club survives on the monthly income of R1.5 million ($100,000) that they receive as their share of the television deal that broadcaster SuperSport agreed to for the next five years.
With attendances declining, gate receipts are for many clubs no longer a revenue source. They lose money on the costs associated with match days, such as security, stewarding and ground rental.
For many clubs, surviving without a benevolent owner with big pockets depends on the ability to develop and then sell players. Some have made it a useful enterprise and keep their heads above water, ensuring survival but effectively losing their ability to be truly competitive.
Free State Stars have an uncanny ability to find quality players at no cost and then sell them on at a healthy profit. Ajax Cape Town, with their extensive youth network, is another ‘selling’ club.
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As is the trend internationally, emphasized by the rise to the winners’ podium of Manchester City and their Abu Dhabi investors in England or the Qatari cash that has made Paris Saint-Germain the runaway power in France, so the South African league too is fast becoming a lopsided arena.
It was no accident that last season’s top two finishers – Sundowns and Wits – are owned by tycoons with a passion for the game. The growing rivalry between Motsepe and Wits owner Brian Joffe is set to continue this season.
Perennial challengers like Kaizer Chiefs and Orlando Pirates are increasingly unable to compete for the best talent – both coaching and player wise. It was not by accident that last season was the first time in almost 50 years of professional football in South Africa that neither of the well-supported Soweto giants won a single trophy.
They will remain competitive while their revenue stream, from sponsorship and replica shirt deals, is strong but that they are no longer the ‘big bulls in the kraal’ is all too evident.
SuperSport United, with the backing of MultiChoice, could grow into the third power in the South African game but do not have the largesse and impulsive ability to strike in the marketplace that both Sundown and Wits possess.
Sundowns’ new-found status and confidence gives them the sporting impetus to continue achieving. The bedrock of Motsepe’s cheque book remains a firm foundation but it helps they are also contributing to the coffers with their success.
The trick for them is to ensure that success of the last two years, which has also seen them win the domestic league title and the Telkom Knockout cup competition, continues for the next few years.
They are best placed to create a dynasty and become goliath in their own league, just like Lyon in the French Ligue 1 who claimed their domestic title for seven consecutive years in early 2000, or Paris Saint-Germain, who have won the last four.
Sundowns’ Champions League success this year could be the start of a period of dominance the rest of the league will be powerless to break.

Wealthy And Healthy

Where would we be without globalization? What if media was restricted to reporting within its own national boundaries? What if we all lived in isolation? It’s a scary picture and one where humanity would have not progressed as broadly as it has.
To fellow African entrepreneurs, I want to say one thing: the more you are exposed to, the bigger you can dream.
Industrialization progressed by further developing what had been done before. Only after working with renowned inventor Thomas Edison, could Nikola Tesla go on to create his own inventions.
Andrew Carnegie worked under the leading businessman, Thomas A. Scott. This mentorship allowed Carnegie to define an era by starting a generation of industrialists, pioneering the philanthropic movement, and becoming an epitome of self-development.
The key word here is exposure.
There are countless occasions where entrepreneurs only discovered their flair by observing other entrepreneurs or studying companies that transformed industries. Some even became competitors of their former employers.
Adrian Gore, the Founder of Discovery Holdings, was exposed to the dealings of the insurance sector early in his career. He worked for Liberty Life but resigned to build his own insurance company. Today, Discovery is the leading medical insurance company in South Africa.
Isn’t it surprising that many companies were started by entrepreneurs who thought they could do it better? Deciding to improve something can shape your destiny. Decisions like these act as the force that pushes us on in our lives.
Look at the former employees of PayPal – today known as the PayPal Mafia. After leaving the famous tech company, these individuals went on to found and fund other mammoth companies like LinkedIn, YouTube, Facebook, Tesla, SpaceX and they are not finished. At the moment, they are investing in Artificial Intelligence.
These gentlemen were exposed to a revolutionary business and they now all share a drive to change the world as we know it to a better world, one that they see in their minds.
Exposure can give you something other than experience, it can also get you through certain doors that were previously shut. Let’s look at two entrepreneurs; both are looking to seal separate deals. Entrepreneur X closes a $1.8 billion deal, while entrepreneur Y gets a $274,000 deal.
Both worked tirelessly to get these deals but the rewards are not the same. It is likely that entrepreneur X has been exposed to certain levels, while entrepreneur Y was operating independently. They might have both known about the $1.8 billion deal, but knowing about it does not mean you have access to it. You need to run in certain circles to get exposed to deals that involve other entrepreneurs in those circles.
What led Aliko Dangote to manufacturing? While trading commodities, he took note of the huge market in Nigeria and decided it was better to manufacture what he was importing.
Before founding Apple, a 12-year-old Steve Jobs landed a summer job at HP and the rest is history. It is this type of exposure that allows entrepreneurs to gravitate towards their destinies.
If you look at the rain, you will never plant. Get out there; attend conferences, travel to various countries, network with successful business leaders and read as much as you can. Whatever you are exposed to can only broaden your current view on the world around you.
By exposing yourself, you also expose your company to other markets and greater opportunities.
You can’t afford to stand idly by and wait for everything to fall in place. Business, and life, is a fight for territory – the moment you stop fighting for what you want, is the moment you will have lost.

Nothing was Achieved  by Being Idle

In the quiet residential area of North Ridge, a four-acre piece of land is being developed into a 200-unit apartment complex. The development in Accra, Ghana, is part of a trend of new real estate projects springing out from previously abandoned parks.
“This is a very competitive market, there are not many people with a lot of disposable income, so the market for potential buyers is very small with everybody going after the same pot,” says Godwin Ofori, real estate agent at BCD Properties.
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Skyrocketing prices for properties is making people desperate to find bargains, says Ofori. Kelvin Nyame, the Co-Founder of meQasa, is hoping to ease their anguish.
meQasa is an online property listings site connecting buyers to more than 23,000 commercial and residential properties across Ghana.
“There are about 27 million people in Ghana and we look at how many people have the budget to rent the types of houses that are available for rent, or office spaces, then you look at people who have disposable income. We feel that the market is very small, so either you are number one or you are out of the game and to be number one you need to have three times the content that your competitors have,” says Nyame.
Nyame believes content is king.
“In the listings, we are the highest right now, and traffic wise we have closed the gap with our competitors. We are doing about 40,000 serious seekers with over 290,000 page views per month. More than half of the 40,000 are converting and what that means is that they are sending emails to our agents and calling our agents to enquire about our properties and we hope to grow this number by up to 50,000 to 60,000 by December,” he says.
Nyame came up with the idea, along with Rashad Seini and Kofi Amuasi, at the Meltwater Entrepreneurial School of Technology (MEST).
“So the whole idea of MEST is to learn software and online business. The program is structured such that you do capstone projects and in the capstone projects you form teams with everybody. The idea is that by your final capstone project you will want to develop your idea into a business and meQasa was one of the last two projects we were thinking of making into a business. After analysing our expertise and our skill set we decided to go for meQasa.”
Nyame and his team had to adopt a lean strategy from the start.
“The market is very small but there were a lot of big players and we just had $90,000 seed investment from MEST to operate with for two years. So if you do the maths, you can only spend about $3,000 per month and this includes employee salaries, office space, marketing and product development, so we were very limited and everyone was after the same customers, so it was very tough.”
There is, however, a light at the end of the tunnel. At the end of 2015, meQasa secured a much-needed investment of $500,000 from Frontier Digital Ventures, a global venture capital firm headquartered in Kuala Lumpur, Malaysia. Nyame is using that cash injection to streamline the business.
“We started monetizing two months ago and we have what we call subscription for developers, so every developer has a fee they pay for a number of months with different bundles. We also have banner ads and also sell our newsletter. For agents, we have products that are customized as well and by 2017 there will be space for every agent that wants to list on the site.”
In just three years, meQasa gained a significant percentage of the property listings business, according to Nyame.
“The early days were tough. We did a lot of research but we made some assumptions. We tried models. As a business you want to look at how you can make money and some of the models didn’t work. One of the models was that we recruited agents who we called meQasa real estate agents. So basically we would give them some kind of resources and an ID card so they know that they work for us but they also have their own real estate business. The idea was to send them leads so that when they close the deal we share the commission but that didn’t work.”
“We also hired a meQasa agent relationship manager to manage the agents, which also didn’t work. We made a lot of mistakes by also looking at the US market and what will work over there, but again that is a very advanced market so it wouldn’t work here. Now we are looking more at emerging markets in Southeast Asia, who are not too far from us in terms of developments but they managed to find solutions.”
The company plans to expand to other African countries and Nyame hopes he’ll soon be the top player in the continent’s property game.

‘Either You Are Number One  Or You Are Out’

Africa’s brave investigative journalist, Bob Rugurika, has no place to call home and is living in fear of arrest and his life. Rugurika’s crime was to do his job by exposing human rights violence in his country. He’s one of over 100 Burundian journalists living in exile.
“As an investigative journalist, when I decide to go on, I become very attached to a story. I am very attached to my cause, to my mission, and that is informed by our radio editorial philosophy, it is to promote accountability to the members of government. We want to create a country without violence. If we are in a country with violence encouraged by authorities, then we can’t say we are in a country, we are in a (war) jungle. If we give up, this world will deteriorate,” says Rugurika, the Managing Director of African Public Radio; banned, but operating on the web.
The steadfast radio journalist, who was this year’s winner of the Press Freedom Award at the CNN Multichoice African Journalist Awards, presented this year’s Carlos Cardoso memorial lecture at the University of the Witwatersrand (Wits). Cardoso was the slain Mozambican journalist who cut his teeth in social activism at the college in South Africa. Cardoso was a Wits student when the apartheid government deported him. Like Rugurika, Cardoso was also a thorn in the side of his corrupt government and was assassinated in 2000 when he was investigating a bank linked to the son of the president.
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“I grew in a weak society – Burundi. There were too many cases of human rights violations. There was a bad conception of power in the minds of the politicians and authorities. Then, I had a dream of becoming a lawyer or a policeman to reduce all those cases of injustice. But when I graduated in university I realized that those two sectors were the most corrupt in Burundi. Then I decided to join the African Public Radio – a voice-of-the-voiceless radio – we documented human rights violations against the members of the public,” says Rugurika.
Mathatha Tsedu, an adjunct professor at Wits and veteran journalist, said Burundian officials were at the university looking for Rugurika. They wanted him arrested because he is a fugitive in his country.
In January 2015, Rugurika was held for more than a month after he interviewed a former government soldier who was in hiding. The soldier was part of the paramilitary who were allegedly instructed by the government officials to murder three Italian nuns who worked in Burundi. Rugurika’s case caught the attention of the international civil community, and thousands of Burundians demanded his release. He was released in March.
Burundi was supposed to go the polls in 2015, but the government decided to use its paramilitary to threaten civilians who protested the decision to stall elections. The Italian nuns were witnesses and ready to testify, so the national intelligence decided to kill them, said Rugurika.
“Since 2010, they tried to corrupt several journalists. I am not accusing my colleagues. Some are victims of this corruption, they fear for their lives if they refuse to take the money. It was the same case with me&#8230; They told me I have two choices, either I take the money, or face jail, or be killed. I refused the money and risked being killed. Deep in my heart I decided to publish the reports (about the death of nuns). It was my contribution to show the world that we have a criminal government. I don’t have fear to state that,” he says.
“The government didn’t release me to give me my freedom, they planned to kill me. On 29 March (2015) three armed guys were sent to kill me in my home. Fortunately, they went to look for me in a neighbor’s home.”
Rugurika went into exile in neighboring Rwanda and later Brussels.
Rugurika says before the government started persecuting journalists, there were attempts to enforce a law for journalists to reveal sources, but Burundians fought against it. This failure led to the formation of Rema FM, a government propaganda radio station. All the independent media houses were banned and are under police surveillance.
It may be unsafe for journalists like Rugurika for some time yet.

‘They Planned  To Kill Me’

It’s 5AM in the northern hills of Malawi where its tobacco is grown. Chifundo Ndilowe is awake and ready for the day. Dressed in grey shorts and a blue NBA vest, still filthy from yesterday’s long day on the farm, Ndilowe has hours of hard labor ahead. He is just 15 years old and has been planting and picking tobacco since he was 10.
“I came here in 2011 because rural life is hard. We were battling at home and I had to start contributing for us to survive. I stopped going to school to work. It is very tough working under these conditions because it is hot and we easily get tired and I am often sick,” he says.
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Ndilowe moved 567 kilometers from Mulanje to Mpherembe, 300 kilometers north of Malawi’s capital, Lilongwe, to work in a tobacco farm five years ago. It means long hours, missing school and breaking the law for little pay. He earns a little more than $140 and $280 a year depending on the harvest.  That’s less than $1 a day.
“We work for the year and only get paid after harvest. During the year, we get 20 kilograms of maize for 12 days because we don’t grow crops for consumption. They also give us salt and then we have to figure out the rest ourselves. I get to eat once a day and I take whatever is there,” he says.
Ndilowe is just one of an estimated 800,000 youngsters in the tobacco fields; voices that are seldom heard. One of an army of children who sweat for millions of cigarettes lit all over Africa.
A study on child labor in the tobacco industry in two areas of Malawi, Suza in the Kasungu district and Katalima in the Dowa district, found 57% of all children were being used as child labour in the tobacco fields.
George Kube, an adult tobacco worker, works with Ndilowe and two other children.
“There is no money for the children to go to school and if they don’t work to help we wouldn’t survive. We farm on two acres of land and the produce is auctioned to tobacco companies. You have to be very strong if you are going to do this job because sometimes we have to cut down trees and look for water,” says Kube.
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A study, published by the British Medical Association, says contract farmers, like Kube and Ndilowe, cultivating tobacco in Malawi, live below national poverty lines, while independent farmers operate at a loss.
“Even when labor is excluded from the calculation of income less costs, farmers’ gross margins place most households in the bottom income [groups] of the overall population. Tobacco farmers appear to contract principally as a means to obtain credit, which is consistently reported to be difficult to obtain,” says the study.
Tobacco farmers may struggle to make a living but tobacco manufacturers thrive. The world tobacco industry is worth billions of dollars. Cigarette retail values in 2014 were worth $744 billion and over 5.6 trillion cigarettes were sold to more than one billion smokers according to the Campaign for Tobacco-Free Kids. But, very few farmers make money from it.
The market is controlled by a few international companies; China National Tobacco Corporation, Philip Morris International, British American Tobacco, Japan Tobacco International and Imperial Brands. They buy tobacco from cheap emerging markets, like Malawi, for profit.
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For years, governments around the world have been trying to clamp down on smoking because of its health implications, through stringent laws and higher taxes, yet tobacco use is increasing in some countries, says Zambian economist Grieve Chelwa.
“African incomes have been rising over the last couple of years and we know that tobacco consumption responds to rising incomes. Further, tobacco companies have put in place strategies (subtle advertising) to take advantage of rising incomes.”
And they flourish.
This year, British American Tobacco (BAT) announced its revenue went up 8.1% at constant rates of exchange, cigarette volume from subsidiaries was 497 billion, up by 2.2%, cigarette market share in key markets increased by 40 basis points and its brands performed exceptionally well with cigarette volume up 9.8% year ending September 30.
BAT plans to merge with its US partner R.J. Reynolds Tobacco Company, the company behind the famous camel cigarette brand, in a deal valued at $47 billion. It hopes to create a stronger global presence and move into new ventures like e-cigarettes.
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In its third quarter, Philip Morris International reported net revenues of $19.9 billion, up by 2.6%, net revenues, excluding excise taxes, of $7 billion, up by 0.8%, operating income of $3 billion, up by 0.6%, and operating company’s income of $3.1 billion, up by 1.2%. In Africa, companies thrive because of weak regulation.
The World Health Organization (WHO) has a 75% benchmark of tax on the retail price, yet the African average is way below. Nigeria taxes cigarettes at only 20% of the retail price. Chelwa says ideally increasing taxes to reduce tobacco use should work anywhere because of the law of demand, increasing price reduces demand.
“But, the important point is the increases have to be real-inflation adjusted increments,” he says.
In Africa, high tobacco taxes are rare. WHO says only 33 countries, with 10% of the world’s population, have introduced taxes on tobacco products of more than 75%. Tobacco tax revenues are on average 269 times higher than spending on tobacco control.
Tobacco companies are also good at finding new markets, with new smokers and weak regulations. According to an article published by The Lancet, a UK medical journal, tobacco use is declining in higher income countries, but nearly 80% of the world’s smokers live in low and middle income countries.
“Tobacco control regulations are not strong across most of the continent. Countries have ratified the Framework Convention on Tobacco Control (FCTC) but that’s all they have done. And sadly the tobacco industry is an important player in the setting of tobacco control policy in most African countries,” says Chelwa.
For years, tobacco companies argue they market merely to convince smokers to switch brands, but evidence published by the National Center for Biotechnology Information shows advertising drives smoking.
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According to a WHO study, smoking has increased in 27 countries over the past 15 years. Seventeen of these are in Africa. In Cameroon, smokers more than doubled from 7% in 2000 to 22% last year. Congo-Brazzaville has seen the biggest spike. Nearly half of Congolese men smoke. Last year, 22% of its people admitted to smoking regularly, up from 6% in 2000.
“Only 42 countries, representing 19% of the world’s population, meet the best practice for pictorial warnings, which includes the warnings in the local language and cover an average of at least half of the front and back of cigarette packs,” says WHO.
In South Africa, cigarette advertising is banned. There are also restrictions on point of sale product display, vending machines and sponsorship of events, activities, individuals, organizations or governments. Now, Health Minister Aaron Motsoaledi has pledged to take it further by strengthening the Tobacco Products Control Act.
Motsoaledi says there should be no branding, no logos and no colors on cigarettes to discourage smoking. If the law is introduced, all cigarettes will be in a brown package with graphics that show the damage they can cause.
This is worrying for the tobacco industry. Christo van Staden heads the only primary tobacco processing factory in South Africa, Limpopo Tobacco Processors, that processes 12 million kilograms of tobacco. He says the effects could be catastrophic.
“The biggest impact [of tougher regulations] is the increase in illicit cigarettes which is a huge dent in the business of BAT and in the whole market. About 20 to 30 percent of cigarettes in Gauteng are illicit and they are paid way below the price,” he says.
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As we meet, in Rustenburg, a two-hour drive from Johannesburg, Van Staden’s farmers have lost 30 hectors of tobacco to a passing storm. On this day, the sun blazes down from a cloudless azure sky. A sprinkler keeps the glossy lawns and flowers alive. Inside the factory, it is dark and you can hear a pin drop. The silence is almost tangible. There is no bustle and machines that usually crackle stand still. It is not tobacco season. All employees are upstairs in the offices working. Dressed in khaki shorts and shirt, Van Staden says tobacco farming is hard.
“For every hector, you need two people to work there and pick it by hand, it is very expensive. One hector costs about R130,000 ($9,500) to plant and the farmer needs to make at least 20 to 25 percent profit. Last year was a very tough year. There were very tough conditions and an average farmer did not make any profit at all.”
“Now they are supporting the local market but if they don’t get any benefit out of that, they have to compete with everyone else in plain packaging, then there is no reason for them to buy South African tobacco, they will literally walk out of here overnight and source their product from Brazil, India and China where they can buy a lot cheaper. We are not ready for that. We would close these doors,” he says.
For Van Staden, closing doors means 10,000 farmers lose their income. He thinks there should be more education about the dangers of tobacco and efforts to keep youngsters away from smoking.
“I am a non-smoker and will not advise anyone to smoke. Most of my staff members don’t smoke. Unfortunately, people smoke everyday but see the warning on the packets and turn a blind eye.  Because it’s such an unhealthy product, the governments around the world will try and eradicate it but I don’t think it will happen in the next 20 years. There are laws in this country that allow people to smoke and to close down the primary sector is not going to stop smoking overnight,” adds Van Staden.
South Africa will follow the UK, Ireland, Australia and France in banning branded packaging.
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In Uganda, 4,800 kilometers from South Africa, it’s even tougher. If you light up in bars, restaurants or hotels, you will be fined $60 or jailed for up to two months. Smokers must be at least 50 meters away from public spaces, such as schools, hospitals and taxi ranks.
Uganda’s new laws also ban the sale of electronic cigarettes, flavored tobacco for water pipes, the sale of single cigarettes and tightened rules on labeling, advertising and selling tobacco to under-21s.
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“We are strongly opposed to plain packing as we feel that there hasn’t been enough consultation and research on it. Our concern is the serious adverse consequences that it will have on the economy, jobs and investment; as well as potentially making counterfeit easier. It trounces fundamental intellectual property rights and freedoms guaranteed by the constitution,” says Joe Heshu, Acting Head of External Affairs at BAT.
According to Heshu, counterfeit cigarettes are a bigger issue. In 2015, South Africa’s Treasury lost R5.1 billion ($373 million) due to illicit trade. The trade accounts for about 24% of the market.
South Africa has been increasing tobacco taxes since 1994 and the big impact has been the reduction in consumption and prevalence, but Chelwa agrees there has been a minimal impact of the taxes on illicit trade.
“Illicit trade often has to do with tax administration and not taxes. Even if taxes were a cent, you’d still have illicit trade showing that it is not a tax level or tax rate issue but a tax administration issue,” he says.
On jobs, Chelwa argues “there are very few tobacco manufacturing jobs, very few given how mechanized manufacturing of cigarettes is.”
The big worry he says is in the field.
“Governments have to consciously find ways of transitioning tobacco farmers into growing other types of crops. This will require a lot of work,” says Chelwa.
Asked if he thinks cigarettes are killers, Heshu argues his company has launched e-cigarettes, which are supposedly less harmful products, in the UK, France, Germany, Italy and Poland.
“We are committed to the research and development of Next Generation Products (NGPs) and globally have invested over half a billion pounds during the past five years. There is a growing body of evidence that NGPs do pose significantly fewer risks than cigarettes.”
For now, tobacco companies continue to thrive. Only 29 countries, representing 12% of the world’s population, have completely banned all forms of tobacco advertising, promotion and sponsorship, according to WHO.
Some of Malawi’s tobacco, grown by the likes of Ndilowe and Kube, is shipped 2,000 kilometers south of Mpherembe. In South Africa, 19% of the population, over the age of 15, smokes according to the World Bank. That’s almost one in five people and it is dangerous.
Tobacco is responsible for six million deaths each year. Of those, 600,000 die from the effects of second-hand smoke. This number is expected to increase to eight million by 2030 if current trends continue, says WHO.
Alexandra chain smoker, Mpho Ndlovu, knows this, yet he goes through three packs of cigarettes a day.
“I have been smoking since I was 15. It started as just playing with friends at school because we knew we weren’t allowed to. It was a way of being cool. I got hooked and have been smoking for 40 years,” says Ndlovu.
What started as a game became a habit and then an addiction.
“Smoking helps me when I’m nervous and I just enjoy it. I have tried to stop many times but have failed. I know this might one day kill me but, at this point, there is nothing I can do.”
Ndlovu spends R110.50 ($8) per day on cigarettes. That’s R766.50 ($56) per week and R3,066 ($225) per month and R36,792 ($2,700) per year and R183,960 ($13,500) in five years. If he continues smoking the same number of cigarettes per day for another 40 years, at this current price, he will spend around $100,000 on cigarettes. If invested, he could buy a house.
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Ndlovu spends close to half of his R7,000 ($500) salary he makes working as a driver for a logistics company in Sandton.
“By the last week of the month, I would be out of money and sometimes I have to ask people if I can borrow or take some on credit from the spaza shop,” he says.
“When I smoke, especially on weekends, I drink as well. So the money I earn is never enough. My children get angry because they think I should be using the money on them. I don’t know how to stop.”
Ndlovu buys his cigarettes from Ntando Debeza, a hundred metres from his home.
Debeza’s spaza shop sells cigarettes, pipe tobacco, snuff, chewing tobacco, hookah and shisha.
“I make about R6,000 ($440)  a month from this small shop. Most of the money comes from tobacco sales but I also sell other day-to-day products like bread and milk. People come to buy and sometimes on credit and I collect money at the end of the month,” says Debeza.
This means Ndlovu’s debt grows. But, that’s not all. Smoking does not only affect the smoker. High levels of nicotine exposure from handling tobacco leaves may cause nicotine poisoning called Green Tobacco Sickness, with symptoms including nausea and vomiting.
Back in Mpherembe in Malawi, Kube says he is aware of the dangers of working in a tobacco field without protective clothing, and mostly its effects on minors. “I know children can get sick but what can we do? We need a lot of hands on the farm because this isn’t an easy crop to plant and prepare. It needs three times more people than corn but we don’t make enough money at all,” says Kube.
He is one of the few rural farmers who know this. And it gets worse. A 2009 survey in China revealed that only 38% of smokers knew that smoking causes coronary heart disease and only 27% knew that it can cause strokes.
“Among smokers who are aware of the dangers of tobacco, most want to quit. Counseling and medication can more than double the chance that a smoker who tries to quit will succeed. National comprehensive cessation services with full or partial cost coverage are available to assist tobacco users to quit in only 24 countries, representing 15% of the world’s population,” says WHO.
Cape Town-based entrepreneur Gareth Carter saw this crisis as an opportunity. He founded WeDoRecover, a company that helps patients who suffer from psychiatric and addiction problems.
“Finding the right addiction program to meet someone’s specific needs is a complex process. The crisis and chaos synonymous with active addiction are overwhelming and the multitude of choices in the marketplace adds to the confusion,” says Carter.
According to Carter, people who smoke are more likely to drink alcohol and vice versa. He says alcoholics frequently present with a co-morbid nicotine addiction.
“As many as 80 percent of people addicted to alcohol and other drugs are frequent smokers, but the bulk will die of smoking-related disease rather than alcohol and drug-related disease…”
The damage doesn’t stop there. Carter adds that major depressive episodes among adults are highest in those addicted to nicotine and lowest in those who have quit or never started smoking.
“With nearly 80 percent of the world’s one billion smokers living in low- and middle-income countries, this is a very real public health care problem for us in Africa. Making nicotine addiction prevention and treatment readily accessible to the youth counteracts a wide range of potential mental, physical and mood-disorder problems with far-reaching ramifications to families, communities and our economy,” he says.
Carter thinks if tobacco was “invented” today it would be classed with other illegal drugs. That’s not the case. The lucrative industry in Africa puffs on unfettered.

The Price  Of Puff

The respected Kenyan scholar Ali Al’amin Mazrui would have had interesting things to say about Africa’s current dalliance with Asia, especially the rise of Chinese business interests and influence across the continent.
Increasingly, companies from Japan, Singapore, Malaysia and South Korea have also been boosting their national GDPs with Africa-based projects. According to Linklaters, a commercial law firm, Asian-sponsored project finance funds in Africa grew by over 160% during the last decade, with Nigeria, South Africa, Mozambique, Egypt and the Democratic Republic of Congo the leading destinations for these commitments, which were in excess of $12 billion.
Mazrui would have advanced a quaint thesis for re-balancing Africa’s trade, cultural and diplomatic ties with Asia’s power blocs. He would have been especially aggrieved by the current state of inertia in the political economy of Africa’s most populous nation. A pan-Africanist and student of Nigerian affairs (his wife Pauline Uti, mother of two of his five sons, is Nigerian), the late professor is credited with stating way back in the 1970s that, “Africa produces what it does not consume and consumes what it does not produce.” And those were the early days of continental profligacy.
Nigeria could be Africa’s biggest culprit in this regard. The country is consequently experiencing its first recession in 30 years. Tired of waiting for the promised hope of a better nation, Nigerians now, rightly or not, accuse their current leader of bringing Africa’s largest economy by GDP to its knees.
President Muhammadu Buhari has been blamed for not ‘radicalizing governance’ fast enough, which was one of the reasons Nigerians voted for his All Progressives Congress (APC) party in 2015. Nigeria is engulfed in a torrent of crises never before seen in the history of the nation.
Clearing the cobwebs of the past is proving to be a delicate dilemma for the taciturn president and his team. Grappling with sluggish growth, dwindling external revenues, double-digit inflation and a prolonged currency constipation, he is leading the ethical campaign to wrestle with the seen and unseen forces of corruption and ineptitude. His seeming preference for advisers from his northern base is also being openly examined by civil society.
For Nigeria’s sake, Buhari needs to win the war against graft and impunity. His victory will begin to recreate a new nation, sealing his place in history and in the soft spot of a large-hearted nation.
But, can he do what is required to transform the ethos of governance, business and society? Will “the Nigerian system” allow him?
Will confirmed and well connected crooks go to jail? Will reportedly recovered looted funds be reinjected into the treasury? Will massive recovery of this commonwealth mean less recourse to external loans? Will the judiciary invoke its constitutional principles on its own stables? Will the Economic and Financial Crimes Commission (EFCC) ever successfully convict any person of influence?
Will federal and state legislatures reduce their allowances and salaries in tandem with the austere times? Do we need a referendum on their astronomical salaries? Will the Nigerian state significantly increase investment in education, healthcare and the police, using advanced technology tools and techniques to revamp these ecosystems? And when will politics with principles become the order of the day?
These are the sort of questions Nigerians are asking themselves. But they also realize their quest for jobs, stability and development is hobbled by a subculture of guile and graft.
Teaching at Uganda’s Makerere University between 1963 and 1973, the late Mazrui was known for poking fun at the megalomania of Africa’s fat-cat leaders and speaking truth to power. Naturally, Idi Amin disliked him a lot. He was also not able to get a job in any Kenyan university during the regimes of Jomo Kenyatta and Daniel Arap Moi. Were Mazrui alive today, he would have also queried the absence of truth and the dearth of altruism in the politics of modern Nigeria.
Mazrui would have encouraged Nigeria’s business, political and military intelligentsia to openly discourse their festering sores. He would have prayed for peace, unity of purpose and nation-wide reflection. He would have said hope should never be allowed to get into a cul-de-sac.
So will 2017 be the year Nigeria begins to recalibrate its moral compass? Nigeria desperately needs to lead Africa out of the nadir of homegrown frustrations.

Quest For A New Nation

The morning is fresh and the wind sends chills down my back; my ears feel incredibly cold as the icy breeze brushes past.
Looking up, I see the reason. The Maluti Mountains in the eastern Free State, in central South Africa, are coated by powdery white snow. Looking supreme and fantastic, it feels like the ancient gods of the many folktales we’ve heard are alive and well in the snow.
Even though I am walking to catch a taxi in this hidden homeland, what I hear inside the taxi are tales of anywhere in Africa.
As I walk to the rank, I pass women who wake at the crack of dawn to sell breakfast. Others have big dented pots out, stirring brown porridge over open fires.
As I walk to the rank, on the pavement is beef, pork and chicken feet.
After 15 minutes of waiting for a taxi, I get in. The driver looks very tired. He has a pungent ‘hang-over’ stench around him and I regret sitting in the front seat and start counting the seconds.
Although I’m sitting in front, a vigorous conversation raging behind me still reaches my curious ears. “And the Bible says this very clearly my sister, many are called but few are chosen,” says a lady of the church.
The lady next to her chirps with the occasional yes and no. I gather the woman is raging over what their church leader got up to. Apparently the leader sexually assaulted a girl in the church. “He will one day face the music and will wish he was never born.”
“Our country needs prayers… women everywhere in this country live in paralyzing fear and that makes me so sick,” she fumes.
Ten minutes later, two middle-aged women get in. They interrupt the impromptu sermon and hard-hitting rant.
The women were complaining about traditional healers who lurk at funerals, waiting for the family to leave the graveyard and then ‘steal’ soil from the grave.
One woman said she saw a ‘sangoma’ wait under a tree during a funeral, and when the family left, went straight for the grave with a small jar in hand.
After ‘stealing’ the sand, the sangoma then ‘buried a brown plastic bag’ in the grave. No one seemed to know why.
The taxi driver, with his blood-shot eyes, turned and whispered, “You women are crazy, you always have something out of the ordinary you want to tell everyone. Who cares about dead people and sand?”
Perhaps wanting to shut out the female voices, he switched on the radio. The husky-voiced presenter is talking about the attacks on tuck-shop owners from Pakistan, in nearby villages, where people believe they have stolen their jobs and women.
This depresses him further, looking defeated, the driver switches off the radio and looks ahead.
I think of what British author Jim Potts once said, “Every life is worthy of a novel.” In Africa you could gather one in a taxi ride.

‘Who Cares About  Dead People And Sand?’

With bright lights shining and the crowd baying for his blood, Rofhiwa ‘War Child’ Maemu must have been hungry as he prepared to throw the first punch. He wanted to win so badly, he starved himself for two days to make his weight for this World Boxing Federation International featherweight title fight in Bloemfontein – a city that didn’t want him.
The bell rings and Maemu goes in for the kill. He’s quick, cautious and has amazing footwork but his first punches miss. Maemu is too quick for his rusty, but composed, opponent, Tello ‘King Razor’ Dithebe, who had not had a fight for four years. Maemu starts each round with quick footwork and aggression. In the eighth round, the tables turn. Dithebe gains momentum and cuts Maemu above his left eye. A few powerful punches by Dithebe in the last two rounds dashed Maemu’s title hopes. Dithebe wins his first title with a split decision; Maemu walks through the dark tunnel to the dressing room disappointed and alone.
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“I feel good, for me a loss is nothing… I will come back stronger and be a champion,” says Maemu after the fight.
In the downcast dressing room, trainer Alan Toweel is optimistic with a tinge of sadness.
“There’s a lot of work to be done but I’ll bring you back slowly; it’s only a matter of practise, practise and more practise,” he says to his fighter.
“I really thought you won that match but that’s boxing for you, it’s a tough sport,” says Toweel.
Maemu knows how tough training is; four weeks earlier he was hard as nails. He runs a 23-kilometer round trip from the dusty streets of Soweto to the suburbs of Linden, in Johannesburg to the Toweel gym.
“He is very lucky, he’s got natural fitness, he’s got natural stamina, he thinks like the old-school fighters, a lot of them used to walk or run to the gym,” says Toweel.
His life has taken heavy punches, so bruising that he took his own ring name. One night he was watching a documentary, War Child, about a hip-hop star who returns to Sudan where he served as a child soldier.
“That war story seemed as if they were referring to me, how I grew up,” he says.
Punishment from his father was just part of it.
“When I grew up I didn’t love running. When I was 12 my dad used to punish me by making me run for 12 kilometers. Whenever I did something wrong, he would give me shorts and say ‘Okay lets go, we’re running’. I would feel my feet are sore and I would be crying but I got used to it,” says Maemu.
Having been brought up in a struggling family, he believes his past could never stand in the way of his future.
“My family is one of those families that are trying. Even at school, I didn’t go further, I ended in grade 12. Even though I didn’t go further with schooling; I still have that heart of a lion to go further with whatever I do.”
His partnership with Toweel is a second chance for Maemu to repair his past tainted with greed, betrayal and hustle.
“For me, each and every time they told me about fights, I would go just go for it because I knew I am going to get paid. For me, it wasn’t about boxing, it was about money. I never had an income back then so when you’re boxing, the purse tend to become exciting sometimes,” says Maemu.
He would receive R7,000 (around $500) for a fight. While sitting on the couch instead of training, he would accept the offer without hesitation.
“I would take any fight even though the divisions were not my divisions, I’d just go. In boxing, divisions speak a lot; you don’t have to get at any division,” says Maemu.
“I think the future looks very bright for Maemu whose career almost ended before it started due to being involved in wrong fights. A good trainer will make appropriate decisions that will see the career of a fighter taking shape by choosing right fights. I think Toweel has done that well. Toweel just needs to add to what Maemu [has] and not to change him to something he is not. A trainer must adapt to a boxer’s style and not vice versa. Once they get that right, then they will be home and dry,” says veteran sport journalist, Bongani Magasela.
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His loss to Dithebe may have been a bolt from the blue to many but Maemu is still optimistic about facing South African featherweight Azinga Fuzile, who beat Macbute Sinyabi for the title.
“Azinga is a good boy but Macbute is finished. The last person who I know who won a title after four fights is my uncle Vic. We will put on a fight for the South African title, that’s for sure,” says Toweel, before the fight in Bloemfontein.
Despite the loss, Toweel is still singing the same tune, he wants Fuzile. Maemu dropped from second to sixth in the South African boxing rankings and will have to climb up to be a contender at the top again.
“Theres a lot of room for improvement and I am willing to work with him,” says Toweel.

The Who Lost  The Battle

South African cricket legend Makhaya Ntini believes racial quotas in the country’s cricket are “long overdue” and hopes to play the mentor’s role for up-and-coming black players to ease their transition into the international game.
Known as ‘The Mdingi Express’, Ntini was one of the finest fast bowlers of his generation, taking 390 test wickets in 101 matches, behind only Shaun Pollock (421) and Dale Steyn (416 and counting) on South Africa’s all-time list.
But now in a new phase of his life post-retirement, he is searching for ways to give back to the game and feels he has an almost unique role that he can play in the complex South African fold.
“I have always seen cricket as a fun game, something to be enjoyed before anything else,” Ntini tells FORBES AFRICA from Harare, where he has been helping Zimbabwe Cricket as acting coach of their senior national team.
“But it has also become an opportunity for young rural boys like myself to build a career and create opportunities for themselves that they might not find elsewhere. That is something we must take very seriously.”
<div id="attachment_5442" style="width: 213px" class="wp-caption alignleft"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-5442" class="size-medium wp-image-5442" src="/wp-content/uploads/2017/05/000_Par3701327-203x300.jpg" alt="" width="203" height="300" />South African cricketer Makhaya Ntini gestures after the Twenty20 match between India and South Africa at the Moses Mabhida Stadium in Durban on January 9, 2011. The match marked the last international appearance of South African fast bowler Ntini, who got a rousing reception from a crowd of about 47,000 but conceded 46 runs off four overs without taking a wicket. AFP PHOTO / ALEXANDER JOE / AFP PHOTO / ALEXANDER JOE</div>
“I used to play Baker’s Mini-Cricket as a boy because it was something new, we never knew the game before it was introduced into the rural areas by [former Cricket South Africa president] Ali Bacher and [administrator] Khaya Majola.”
“The sport was not played in school; we had no television to see it. It was not a game that was part of us. But when given the opportunity to play, it was new, it was exciting.
“There were a few role-models that we could really look up to though. Omar Henry was there when we returned to international cricket in 1991, and he was a wonderful player. Obviously there were wonderful cricketers out there playing, but we did not get to see them.”
Ntini says he feels that had official quotas been introduced at the time he was starting out with the national team, the Proteas would have had a wider pool of players to choose from and been stronger for it.
Cricket South Africa (CSA) has recently announced that an average minimum of six black players, of which two must be black African, will be selected for matches across all three formats of the game over a season.
This is in keeping with a decision years ago to enforce the same quotas at provincial level.
“From my take, it has been long overdue,” says Ntini. “If it had happened at the time of myself, Monde Zondeki, Victor Mpitsang, Garnett Kruger, Geoffrey Toyana, our cricket would have never have gone through the troubles it has.”
“The talent was there, but the quotas were only in the schools and provincial sides.”
“The likes of myself, Herschelle Gibbs, Ashwell Prince and Paul Adams – we had to work harder than anybody else to get recognized. We had to perform in every game to stick around [in the team].”
“We could not have a ‘bad day in the office’ like many other players or suddenly we would be under big pressure. We were looked at in a very different way.”
“I had to wait four years to play in England. I kept being told by [former captain] Hansie Cronje and [ex-coach] Bob Woolmer, ‘you are on a learning curve, you must wait for your chance’.”
“It seemed impossible that I could take the place of an Allan Donald, Jacques Kallis, Brian McMillan, Shaun Pollock or Lance Klusener. These were great players, but I think if I was born seven years later I would have achieved a lot more in the game.”
“Because of that I think we had a responsibility to perform. We had a responsibility in how we trained, how we played, how we gathered ourselves off the field. We needed to make sure that when we went on that field, we had the tools to give our best.”
No-one in their right mind would suggest that new young firebrand fast bowler Kagiso Rabada has benefitted from the recently introduced quota system, he has let his prodigious talent do the talking. The son of a doctor and schooled at the prestigious St Stithians College, Rabada did not have any of the early disadvantages that Ntini endured as a young boy.
But the latter insists he still needs to be mentored and guided along the way.
“He has chosen a narrow road as a career, but he has a wonderful family around him to ensure he does not get big-headed and to offer guidance. He keeps himself grounded,” says Ntini.
“But I can see he is hungry to achieve more than what I did and is not satisfied with what he has done already. He looks as though he is challenging himself all the time.”
But Ntini cautions that international sport is an unforgiving place and says he will always be a sympathetic shoulder for Rabada or any other cricketers making their way in the game, especially those from disadvantaged backgrounds.
“Sometimes they need people to sit them down and talk to them as brothers,” Ntini says. “I have realized that we lack that in our coaches. They can teach everything about cricket, but our brothers do not have someone that they can easily open up to with their struggles off the pitch.”
“I feel like I can offer advice, because these things can have a major impact on your career. We have coaches to teach cricket, but when the player is off the pitch and in his hotel room, they don’t have people to knock on the door to see how they are doing.”
“Can I open up to an [captain] AB de Villiers as a black cricketer and say, ‘I am struggling with this or that, my girlfriend has just left me, I am going through a divorce’, things like that which have a huge impact on a person?”
“AB will not be able to guide them, I don’t think, but I feel like I can be that person with all that I have been through. If I had the opportunity to be involved on that level, I would jump at it because I see it as a way of giving back to the game and to South African cricket.”
Ntini says he has enjoyed his stint with Zimbabwe Cricket, even if the side did receive some criticism during his tenure for crushing losses to India and New Zealand.
It is, perhaps, unfair to lay the blame for those defeats at the door of Ntini given how little cricket the Zimbabwe national teams plays. Whatever the result, he continues to flash his trademark smile.
“Enjoyment is an understatement, I am loving it [coaching],” he says. “I put my whole heart into it. Look at Zimbabwe cricket and cricketers, how much they have changed from where they were since I got here.”
“They tend to enjoy themselves now, they open up to us, they have the freedom of being able to be you, not the restriction of trying to impress me.”
But he says his heart remains in South Africa and if the right opportunity came to return home, he would jump at it.
“South Africa is my country, I will never run away,” he says.

The Role Model Waiting For A Role

It is a tragedy that business opportunities are missed because entrepreneurs overanalyse risk factors. This is the very reason businesses grow at a slow pace, while others are phased out.
I’m not encouraging ignorance; I’m just disappointed by entrepreneurs blinded by small details rather than being decisive.
The same applies to investors who, thinking they knew too much, did not invest in Uber when their founders approached them.
In an ever-changing world, you can’t make decisions that are only informed by the past. Rather than dismissing what you don’t yet understand, consult those who do to help you make an informed decision.
A gigantic problem faced by most of us entrepreneurs at some point in our businesses is analysis paralysis. Basically, it is over-analysing, or overthinking, an opportunity. It often results in a decision not being taken, and can lead to your business underperforming.
Analysis paralysis is worse than red tape. With analysis paralysis, things don’t move slowly, rather not at all. Decision makers are paralysed by their inability to make a decision, afraid of what could or could not come to pass. Ultimately, not deciding is the same as deciding against.
As an entrepreneur, you have probably dealt with corporate clients and stakeholders. This disease is within their structures, whether it is the personnel dealing with your proposition not being entrepreneurial in their approach, or the committee under-evaluating your proposal.
<ol>
<li>Harv Eker, the author of Secrets of the Millionaire Mind, says it better: “One step in the right direction is worth 100 years of thinking about it.”</li>
</ol>
One of the reasons Nokia went down the way it did, after a decade of leading the mobile sector, was due to analysis paralysis creeping as the company was getting complacent. Around 2006, Nokia was more concerned with staying where it was, instead of pursuing new opportunities.
It’s not as if Nokia wasn’t working on new stuff, they just lacked a sense of urgency. Developing cutting-edge new products was put on the backburner. Former employees observed that Nokia’s operating system team split into two and started to battle for the attention of top executives, resulting in internal politics. In 2008, Paul Jacobs, CEO of Qualcomm, also voiced concern that Nokia devoted too much time to strategy.
From one decade to another, we have seen how the mighty have fallen. Now we are aware of the danger of analysis paralysis.
Entrepreneurs can learn a thing or two from a married couple. A husband comes back from few meetings, excited about a business opportunity. He tells his wife that the family’s finance could improve, but, because the wife was not in the meeting, she will do the responsible thing of interrogating the validity of the offer.
Often, with many businesses, these opportunities are not discussed and considered in the same manner. This should be compared to the processes at successful start-ups. Here the co-founders will debate the merits of each deal.
There is a danger of approving every offer that is made; it will likely end up in bankruptcy. I’m an advocate of being cautiously optimistic.
In a competitive business environment, analysis paralysis is the worst thing that can be allowed to emerge; it is a culture that needs to be kicked out of the system.
No matter how big a company becomes, it need to maintain an entrepreneurial approach. Don’t become a big truck that turns around after driving two blocks down the road.

Optimism  Is Better Than  Paralysis

In a week of tumultuous South African political news, as Finance Minister Pravin Gordhan’s battle with the National Prosecuting Authority came to a head, a crucial infrastructure story broke to little fanfare.
The South African Forum for Civil Engineering Contractors (SAFCEC) announced that under its auspices, most of the major listed construction companies reached an historic, unique and far-reaching voluntary agreement with the South African government.
The signing of this settlement ends years of dispute between the construction companies and government following findings of collusion by the Competition Commission investigation launched in 2009. The agreement commits the parties to chart a new future co-operative trajectory underpinned by measurable commitments to empowerment and transformation.
Collectively, the construction companies will make a combined contribution of R1.25 billion ($87.5 million) over 12 years into a trust fund to be controlled by a board of trustees appointed from government, the construction companies and SAFCEC. Each year, individual companies will pay between R15 million ($1 million) and R21.25 million ($1.5 million).
This voluntary contribution is in addition to the R1.46-billion ($100-million) penalty imposed by the Competition Commission Tribunal on some companies in 2013.
The trust will use the payments to develop and enhance the construction industry in line with government’s transformation goals and to develop emerging contractors and suppliers in South Africa.
Initiatives to be supported by the fund will include financial support for young trainee artisans and engineers from disadvantaged backgrounds, support for the teaching of maths and science at public schools, funding for social infrastructure and the development and promotion of construction companies owned and managed by black people.
The funding will also be used for the appointment of professionals to provide the government with engineering, project management and other services to strengthen its capacity to deliver the public infrastructure.
Combatting large-scale collusion and corruption, opportunities for South African companies in infrastructure projects elsewhere on the continent will be identified.
The construction companies have also individually undertaken to either develop up to three emerging black-owned businesses or dispose of a portion of their South African basic construction businesses to majority black-owned enterprises.
The agreement provides a framework for settlement of claims by the industry regulator, the Construction Industry Development Board (CIDB), as well as civil claims by public entities against companies investigated by the Competition Commission.
The positive implications of the Competition Commission extend beyond South Africa’s borders. The investigation was active in other territories and being watched across Africa and the rest of the world. Foreign competitors gained ground in these markets because our construction groups were not supported by the South African government until a resolution was found.
That is all set to change now and perhaps South Africa can hunt as a pack and claw back markets and jobs for the benefit of people and suppliers in those territories and within South Africa.
Those who have followed my column will have noted my consistent call for an end to the destructive standoff between the South African government and the construction industry. In my latter years as a CEO in the industry, and now in retirement, I have been committed to resolving the industry’s future and was a member of the CEO group who helped craft the early foundations of this voluntary resolution program. I recall many late evenings driving back from ministerial meetings in Pretoria and intensive debate and strategy sessions within SAFCEC. Important stakeholders from black business, who will likely significantly benefit from this agreement, were included.
Simultaneously with this announcement came an uptick in the project outlook for gold, the announcement of two big private sector coal power plants, and momentum on nuclear power.
“Through the transformation commitments in the agreement, we can rebuild the relationship with the companies concerned and work in partnership in future,” says Gugile Nkwinti, the Minister of Rural Development and Land Reform, as well as the Chairperson of the Management Committee of the Presidential Infrastructure Coordinating Commission.
“This arrangement also demonstrates the commitment to a transformed, transparent and ethical industry, which has a major role to play in delivering much needed infrastructure,” says Webster Mfebe, the CEO of SAFCEC.
I was thrilled to learn of the successful conclusion of this agreement. It took seven years, but the benefits might be felt for decades to come.

Burying the hatchet  for a brighter future

Anew mining act was introduced in Kenya, in May, which promises to usher a new era.
Among some of the new initiatives is the setting up of a National Mining Corporation, a Mineral Rights Board and a clear formula of how royalties are to be shared. Of the latter, the national government expects to keep 70% while the rest is distributed between the counties and the community in which the mining takes place.
The new law comes at a crucial time. Internationally, the country ranks poorly on mining matters. According to results of the Fraser Institute’s 2015 annual survey of mining and exploration companies, Kenya was ranked among the bottom 10. It is hoped that the new legislation will help catapult the country up the ranking. The government is eager to see the industry improve its contribution to the economy, from the current 0.9% to 10% by 2030. As at the end of June last year, overall value of mineral output stood at a mere $240 million.
In a bid to package its mining profile, the country is busy mapping out its mineral wealth through an aerial geological survey. This is an important step. For many years, investors have complained about the lack of extensive mineral data, which has resulted in less investment. The new survey is expected to unlock the massive potential in the industry, similar to its neighbors. In Uganda, an aerial survey in 2006 led to the discovery of 200 million tons of iron, five million ounces of gold and an updated estimate of the country’s vermiculite reserves to 55 million tons, up from just five million.
As Kenya embarks on this new direction, plenty of obstacles lie ahead. One key challenge is the obvious resistance to some of the clauses of the new law. Some industry figures have decried the requirement for license holders, whose planned capital expenditures exceeds the prescribed amount, to list at least 20% of their equity on the local exchange within three years after the start of production. Some have also taken issue with the government taking 10% of equity in large-scale mining operations and consider the forfeiture of unused exploration budgets to the state as a punitive provision.
It will be critical for the government to banish the notion of instability, particularly around security of tenure. Unilateral cancellations of exploration licenses will not augur well for the image of the sector. Moves such as last year’s cancellation of 65 mineral exploration licenses risk scaring away even the most committed investors. Current low prices also present a major hurdle. Poor commodity prices and an 11% decline in total mineral output last year, to 1.5 million tons, has led to some processing plants shutting down.
Be that as it may, the mining landscape is on the cusp of change. Under the Mining Strategy 2030, Kenya expects to earn up to $1.3 billion in royalties within 10 years. Gold mining alone is expected to fetch $3 billion in revenue. The mining department is also seeking to build an additional 10 to 20 mines in 15 years. The ministry expects to meet this target by expanding the small gemstone industry, developing a mining services industry and registering the tens of thousands of artisanal miners. Artisanal miners are estimated to account for over 60% of annual gemstone and gold production, according to the United Nations Development Program (UNDP).
Faster progress may come through the proposed national mining corporation which is set to act as an investment promotion vehicle, attracting foreign capital and bringing attention to the country’s vast mineral wealth. Kenya has an estimated three billion tons of titanium, 400 million tons of coal in Mui Basin in Kitui County, gold in western Kenya, gemstones in the coastal region and large deposits of fluorspar and limestone.
With all these initiatives, Kenya’s mining future is bright. The country’s humble start is set for a successful future.

Firing Up the future

Burkina Faso, as the third biggest gold producer in West Africa, behind Ghana and Mali, does not get the recognition it deserves. In addition to gold, the nation is blessed with manganese and other rare earth metals, making it a premier destination for mining. With this in mind, it is not surprising that the government is in talks with mining companies to develop a world-class manganese mine.
Gold is Burkina Faso’s most valuable export, accounting for almost 80% of its income. But, the reliance on gold is waning, with focus turning to the exploration of other mineral deposits. A diverse base of minerals, especially with the discovery of manganese, will help ensure that Burkina Faso develops multiple revenue streams.
Considering that there was no industrial mining in Burkina Faso up to 2007, the sector’s rise shows what can be achieved in a relatively short space of time with government support and relative political stability. Companies that have an interest in setting up operations in the country include Canada’s Endeavour Mining and UK-listed mining company, Toro Gold, both of which are active players in the West African mining space. Another Canadian miner, Roxgold, is in the process of completing an IPO to develop a 95,000oz concession. Key to Burkina Faso’s success is the high grade of its gold.
Despite a rosy outlook, there are challenges. Power shortage is hampering the progress of projects and the Burkinabe government has started to construct a 33MW solar power plant to combat the problem. This approach will hopefully encourage investors.
In addition to Burkina Faso, Mali has historically had a vibrant mining sector with the country hosting many productive mines. Gold mined in the West African country last year produced 50 tons of gold, with production expected to surpass 60 tons by the end of next year. With both Burkina Faso and Mali having a degree of political stability, coupled with low taxes and other incentives, the region will no doubt attract investors who might have been sceptical about the region just a year ago.
As Nigeria aims to kick-start its mining sector, there have been significant developments. Canadian company, Thor Explorations, has taken steps to develop a 535,000oz resource and could become a leading player in Nigerian mining. As exploration and new discoveries in the region ramp up, unlocking the potential of the projects will depend on the ability to raise finance, but it has to be the right type of finance. Traditional financing often ostracizes smaller players and curtails smaller projects. Crowdfunding is a method that is gaining traction, especially in advanced mining countries such as Canada. Whether this method can be replicated in Africa remains to be seen but innovation – be it technological or financial – will be advantageous for local and international companies.
In the last couple of years, mining has started to attract the attention of boutique private equity firms. In some cases, financing for mining projects can be misplaced. Private equity traditionally takes a long-term view, with the objective of matching long-term capital with long-term projects. This year has seen an increase in global private equity mining deals, with many mining companies considering these deals as the best way to advance their projects and also provide strategic and managerial expertise.
The cyclical nature of mining means timing is crucial for investors. The price of gold has improved significantly but, with other base metals still performing at low levels, appetite is tempered. Due diligence on any project will determine the way forward but despite advancements in legislation, the perceived lack of transparency and bureaucracy associated with license acquisition deters investor confidence.

Crowd fund the mines

From the deserts of Rajasthan to the dunes of Dubai and the corporate dens of Africa, Rakesh Wahi has weathered the vagaries of life and business. When only 23, while serving in the Indian Armed Forces, he was electrofied and almost died. That early experience taught him to chase his dreams – and fulfil them, no matter what.
Wahi, founder of the Johannesburg-based ABN Group, including CNBC Africa and FORBES AFRICA, has been a leader in media, IT, telecoms and education. Also based in Dubai as Chairman of CMA Investment Holdings, prior to moving there, Wahi had served in the Indian army for about nine years, and for distinguished services to the country in peacetime, was awarded the Vishisht Seva Medal by the President of India in 1985.
Wahi has built companies in over 22 countries, employing a little over a 1,000 people. “Extremely passionate about education”, it is his vision to set up educational centers of excellence across Africa. His first university was launched in Ghana in 2013. He is also the co-founder of Murdoch University Dubai.
Here, Wahi talks about education, innovation, and his debut book, Be A Lion, which will be unveiled at the finale of the 2016 CNBC Africa All Africa Business Leaders Awards in Johannesburg on November 11.
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<h4>What is Be A Lion about?</h4>
It’s about people and the impact they have had on me. I think this entire journey I have made is about how people have influenced me. First, on your way up, it’s your parents who are your greatest influencers as that’s where you get your identity from; and then, over a period of your lifetime, it’s the people who come into your life and make an impact, some positively, some otherwise. And that is the greatest experience you can talk about.
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<h4>You own multiple businesses; what new innovative industries are you possibly looking at?</h4>
When it comes to innovation, the key is to focus on how the world is changing and how things are going to impact our existing businesses. You have to constantly think about how your consumers are reacting to your products and services, and constantly change and that’s what innovation is about; it’s about reaching your customers in a more efficient manner.
With regard to the education sector, it’s changing rapidly. The way children consume education is very different from our time. The traditional classroom environment is changing.
Now, is learning going to be classroom-based? Are holograms going to be the future of education? Can you superimpose a teacher sitting in New York into classrooms in core campuses across the world, and have concurrent teaching?  A lot is changing.
Online is a very important aspect of where education is going, but I don’t believe that is the answer to it; I think the hybrid kind of education is what is eventually going to come around. Face-time with teachers is critical, the social engagement with peers is critical, so therefore a lot of things are going to remain constant with education, and the rest of it will evolve in terms of where technology and innovation can be used to make it more efficient.
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<h4>What are your continuing goals for education in Africa?</h4>
We are setting up centers of excellence. In West Africa, with Lancaster University, we are going to be setting up an engineering college with strong laboratory-based learning. In East Africa, our focus is energy and a vast part of it will require simulators and modern training equipment, and we will be partnering with industry to make sure we get the best of breed. We will roll out energy programs in the rest of Africa, and encourage students from across Africa, Asia and emerging markets to come to Rwanda for instance, where we are partnering with the University of Aberdeen for our energy programs.
In southern Africa, we are looking to partner with one of the Scottish universities to set up a center of excellence for health sciences, including medical and nursing colleges.
We don’t want to bring in technology from the yesteryears just because it is cheaper, or because we think Africa is still an emerging market, we want to actually leapfrog and bring in the latest technical innovations into these centers.
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<h4>CNBC Africa turns 10 next year; what are the innovations in the media business?</h4>
The entire way in which people are going to view television is changing, so are distribution channels. What remains consistent is there will always be demand for high-quality content. Our focus on creating quality content, which stays with the values of CNBC globally, is going to be one of our core competencies, but how you distribute it is going to actually evolve in the next 10 to 15 years, particularly in Africa.
The viewing habits of consumers are changing, they are no longer watching channels; they are watching programs, and able to customize their own grids. What is relevant is you will be able to watch what you want, at the time you want, in a scheduled manner.
On the one side, we have to make sure we create best and compelling content; on the other side, we partner with distribution platforms able to cater to the needs of the consumers at an affordable price.
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<h4>How welcoming is the African economy today of innovation?</h4>
At conferences and workshops, people talk about innovation, but I am not very sure they are actually geared up for it. The practical elements of bringing innovation into your workplace, whether in government or large corporates, is about a change in mindset, when you have to change processes and the way you look at things. It’s about driving change, and also, the commitment of leadership.
You do find there are some leaders in Africa bringing about that change, and the one that I would single out is President Paul Kagame, which is why Rwanda is making strides the way they are. He has the ability to visualize the future. They also have restrictions in terms of the size of the economy, but when you are hungry, you are able to adapt faster.
Kagame has brought a culture of change in his country, and it is very visible in the way you do business in Rwanda. You can set up a company in six to 24 hours if you have your documents in order. Rwanda gives you the opportunity to adapt quickly.
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<h4>How do you balance profit and philanthropy?</h4>
I think these are closely related. There have been great leaders like Mother Teresa who have devoted their time towards a cause. And she has touched the lives of our family too – she was very close to my mother, and has been to our home. But eventually, even to enable what she was doing, required money.
Over time, our own CSR and philanthropy as a family has changed. When Saloni [Wahi’s wife] and I were starting out in our life, even when we didn’t have much, we were always engaged in making a contribution towards causes.
Over the years, we found we needed to have a cause of our own, and after we set up the ABN Education Trust, we rationalized what made sense to us as a family. We focused on financial journalism, and also, on helping destitute women and the girl child, a cause Saloni is very passionate about.
Money is an important contribution but you also need to make time. Saloni and I work as a team. The heart sits with her, while I become the machinery for generating the income.
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<h4>Your most prized possession is…?</h4>
Family. I am not a material person. If I were to pack my life, I could pack it all into one suitcase.
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– Interviewed by Methil Renuka; for the full text of this interview, visit www.cnbcafrica.com; All net proceeds from the sales of Be A Lion, published by Penguin Random House, will go to charity and  the ABN Education Trust.

The Entrepreneur’s Entrepreneur

His exquisitely-cut suit is a perfect match for his suave manners. His tie and a bright handkerchief round off the look. This is Antonio Ambrosio; fashion is his game and Instagram made his name. His ability to put together stylish outfits landed him the opportunity to work with international brands. He makes a living through posting his photos on Instagram, a world away from a childhood in the grip of war.
Instagram is a social network that allows users to share their pictures and videos.
“I was just posting pictures of what I wear on a regular basis to work on Instagram and then I got a number of fashion blogs that were sending me messages on Instagram asking for my permission to use my pictures on their blogs, then OTAA AUSTRALIA discovered me,” says Ambrosio.
OTAA Australia sells a wide range of bow ties, ties, and more.
Hailing from Luanda, Angola, Ambrosio moved to South Africa in 1998 to escape his country’s brutal civil war. A decision he will always thank his parents for instead of struggling for survival in the conflict.
“I was too young at the time to fully understand the seriousness of the circumstances in Angola during the time we moved to South Africa,” he says.
Coming from a family of eight children, Ambrosio went to visit his home four years after the war ended in 2006.
“It was then where I learned a great deal about my country. The civil war destroyed Angola&#8217;s infrastructure and severely damaged the nation&#8217;s public administration and economic establishments,” he says.
Although his country deteriorated, Ambrosio’s career blossomed.
His interest in fashion design grew after his first job as a sales assistant at Hackett London in 2011.
“I devoted many hours meticulously studying traditional Italian and English bespoke artistry. I later taught myself basic production skills; combined with my intimate passion for fine art that has carried me from a young age.”
The 25-year-old has recently been approached by New York Red Bulls footballer, Felipe Martins, to dress him. But his daily bread comes from Instagram. With more than 27,000 followers, Ambrosio makes more than $50 a post, depending on the company he’s working with.
Ambrosio has worked with many other international brands, mostly start-up companies from New York, Sydney and London, as well as South Africa’s established luxury watch company, Picot &amp; Moss.
“I had a number of companies that approached me and sent me their stuff and I’d blog for them in return for money,” he says.
As he continued to post photos of himself wearing his suits, demand grew.
“People started asking where I got my suits, everywhere I went people were interested then I thought you know I could actually start a business from this, so basically I did.”
According to a recent study, Instagram has grown from 1.1 million users in 2014 to more than 2.68 million users in 2016.
Instagram is also the preferred social network for major brands. At present, 42% of major brands are using it, with Mr Price and Mercedes claiming the most success
Johannesburg media analyst, Arthur Goldstuck, says Instagram is growing fast.
“You have a lot of media personalities who have also used Instagram successfully to enrich themselves of influences and as a result of that they get a lot of request to do endorsements by big brands,” says Goldstuck.
Ambrosio works with eight people. He designs up to 10 suits a month and makes more than $700 a time. He even changed his Instagram page from a personal page to a company page. He only posts the suits he designs and the items from the companies he works with.
“Instagram is such a visual platform, when it comes to advertising it’s really the best platform you can use,” he says.
“This is going to become even bigger over the next five years,” says Goldstuck.
Nominated as one of GQ’s best dressed men in 2015, Ambrosio sees dollar signs when he wakes up, gets dressed and chooses just the right accessories before going on Instagram

Tag: November 2016

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