*This presentation forms a part of the articles, commentaries and presentations in a series trade- marked Cyprian’s Law Series, manged by Abraham Rich Capital (ARC) a private equity, investments research, capital solutions and advisory services firm focused on Sub Saharan Africa. The series speaks to capital, investments, business environments and the role of the law within the Sub-Saharan African region. It is published and shared in the DBN Insight and the publications of ARC.
The nature of our people identified out of a colonial past, the francophone has always been to give a lot of compliments, thank the audience for the opportunity to speak, and thank again, then speak as they wish. The Anglophones tell no stories, beat by the bush less but get straight into their opinions-even when they are full of rhetoric. Well, if one has had experiences with both of these and possibly learnt a few tips off TED Talks, they know to tell a story. I bet you can tell which one I am.
So, in this series I will discuss in as much a non-academic way but relatable one, the investment and commercial terrain and the laws and policies governing, encouraging or discouraging capital in sub-Saharan Africa. I will generalise the various methods of capital raising and the answers entrepreneurs, investors and you, and I seek.
Once while sharing on empowerment to a group of young African professionals and business people in Des Moines, IOWA there was a common acceptance and acknowledgement of the diversity of Africa and of Africans. There was consensus on the astronomical increase in the birth of ideas. There was clarity of mind that indeed a number of the civilised society’s ideas of democracy, the respect of human rights, adoption of best practices of corporate governance and the drive to enterprise principles are well known and academically appreciated by the peoples of Africa. It is not purported at all that the continent entirely is at par with this position. What is amongst others in deed is that a lot of blue prints have been crafted palatable and so elaborate but have remained that. It’s easy to pose here and say that the summary of Africa is done, to also put it across somewhat and say that there is great possibility that education could have developed the african mind and put a cap on it too, restricted the African to false finish lines and unprofitable egos and skilled many to analysis and never implementers. It would be fool hardy to think that the laws and the legislative framework is designed to motivate and promote the growth of domestic entrepreneurship. The pay master remains exactly the same, the pay master.
All the same to set the capital story within Africa in context the narrative must be known. An author once wrote that the race for African resource is the same today as it was in the 1900s. While the colonial groupings sought and succeeded in partitioning the continent along the lines of their interests, “at the service of her majesty”, England, France and Portugal amongst others. Today it is the Chinese, more Asians, Russians and more lately Brexit had sent the British back into the party again with their sight getting set on Southern African countries again. The many walk in poor and walk out pretty well to do.
So back then it was colonialism and today it’s called aid. Fancy!
The African story is that literacy rates are significantly rising. People have been taught to read and write. Reading and writing is not the problem. Zimbabwe’s estimate literacy rate is approximately in the 80 plus percentage region. This is reflective of the willingness of Africa, the acceptance of information, probably and indeed not the use of it for Africa by Africa.
It’s a continent of great diversity, a continent where some 1 500 languages are spoken. It’s been established that there is great human resource which slave trade could not deplete, 40% of the world’s population is known to live in Africa and also 59 to 60 % of the world’s natural resources are a given to the continent.
A huge leap to modern day Africa will still show that the capital is still in the control of 1900. A lot is coming from the floods of Asia. A lot is coming is in the form of aid and grants to promote a phenomenon knew and transcending across the lines demarcating Africans and called borders, called social entrepreneurship.
Today the laws set out to address and create a framework for the operation and application of capital into corporate Africa remain as they were at the time of partitioning or at the time colonial dominance was taking root and expanding. Legislation governing corporations can be as old as over six decades. These laws were put in place during a period were the approach to creation and interpretation of laws was largely positivist. The law ordinarily would serve the pocket that gave and also fund governance or rulership without reservation.
Africa today speaks of home grown entrepreneurship, attempting to harness capital and invite capital. The hope to grow local capital through methods defined in financial engineering and finance even though it would appear that the framework and laws may not be speaking to this blue print.
A lot of question would therefore arise around how capital can be raised for Africa by Africa. How capital flight can be curtailed and how as was the case in the 1900 hundreds and modern day western world private capital can be promoted amongst Africans. The answers the law can provide in this regards become crucial and desirable.
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is a seed of what this series will continue to discuss.