10 Reasons Why Intra-African 'Go Out' Strategy is Good

Published on 6th January 2015

Africans’ political independence has been characterized by a policy orientation dominated by a “Welcome in Strategy.” Ranging from governance, military, economic, religious, academic and civil society activities among others, the expectation is that the outside will transform Africa. The quest for positive transformation for a people held captive in ethnic and in country-boundary capsules simply breeds prisons of poverty.

A “Welcome in Strategy” coupled with Africa’s electioneering cycles has led to disastrous results. Politicians struggle to showcase success during their 4 or 5 year term in office but  fail to have a long haul view of the country’s foreign engagements. Kenya attempted to divorce development plans from political cycles via its Vision 2030, but alas, a quick review of press clips from 2013 shows less enthusiasm.  With development agenda back on 5 year term cycles, the motivation to utilize “Welcome in” in order to “Go out” will remain pegged on political short term whims.

The “Welcome in Strategy” has been used by countries that plan long term to facilitate domestic capital formation, market reform and ensure technological advancement. The momentum created by engaging with foreign entities is then used to launch such countries to nurture transnational businesses and activities. A long term focus assists countries to go beyond the quest for Foreign Direct Investment (FDI) merely as an employment generator. FDI becomes a catalyst to “wake up” existing potential in the country to gain necessary experience to become global actors. The quest for FDI becomes aligned to a conscious effort to surface in-country initiatives while withholding the key and responsibility to develop onto its populations.

Countries that have clear national interests that go beyond short term political party interests have nurtured “Go out Strategies” that have led to successful enterprises whose lifespan go beyond 100 years. Successful transnational enterprises contribute both to the economy and foreign relations with other countries. Can African Countries nurture a “Go out” approach? Self driven initiatives such as those of Econet-Telecommunications (Zimbabwe); Zambeef-Food and Retail (Zambia); Nakumatt - Retail (Kenya); Oando – Oil and energy (Nigeria); Safaricom – Telecommunications (Kenya); Equity Bank – Finance (Kenya); Dangote Group – Industrial conglomerate (Nigeria); Ecobank – Finance (Togo) and Mara Group – multiple activities (Uganda) among others, can facilitate a template for Africa to “Go out!” These self driven initiatives are a pointer to possibilities that African countries need not necessarily wait for a time to accumulate surplus capital in order to “Go out.” The thirst for the African market by global players should position countries opt for “Go out Strategies.”

An intra African country “Go out Strategy” has several benefits for individual countries. One, It will bolster the confidence and experience of Africans to partner with international actors to deliver value to the African market. Two, it will lessen the impact of inherent structural flaws in Africa’s political system that breed “our turn to eat” mentality. Three, it will pressurize informal and Small and Medium Enterprises to up their game and become regional actors. Four, it will catalyze activities that will lead to job creation to address the continent’s youthful population.

Five, it will scale up thirst for advanced and efficient technology. Sixth, it will grow efficient logistics and distribution channels in Africa thereby grow and solidify the African market. Seventh, it will pressurize actors to address the mismatch of skills between education and the private sector. Eighth, it will incentivize inward looking private sector cartels to focus on regional integration initiatives. Ninth, it will reorganize the export map of African countries from focus on primary to value added exports. Tenth, it will grow the much needed African private sector actors.

African integration and mutual cooperation will be achieved if respective African countries nurture their citizens to reach out and offer value to others in Africa in an open market place.

By James Shikwati
The author james@irenkenya.com is Director of Inter Region Economic Network and Publisher of The African Executive.


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