New Year's Message

(Litsako, Bongani, Eldred and Nkgadi)

The first decade of the 21st century is drawing to a close. The world’s economy has been hit by the worst recession since the great depression of the 1930s. Much has been speculated about the causes and the effect of the current economic decline. Banks have relaxed their lending criteria too much. Greed has driven many to take too much risk. Many have done what the “others” are doing. In the process the band wagon derailed.

It was indeed a tough year. To me, one of the important lessons to learn is to keep to sound business practise which includes honesty, being fair, mutual benefits, win-win solutions, value added and more.

To me, as a Christian, there is always hope. It is a hope not only for next year or the next decade but for eternity. For fellow Christians, my wish is that you may have a blessed Christmas and get closer to Jesus.

May you all have a wonderful 2010!
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The debt problem - Do Contracts Mean Anything in Africa?

Needless to say the economic downturn has also affected all of us. It again highlights elements like commitment, honesty, reputation and trust worthiness.

As I write this, major mobile companies in Africa owe my company money for months. All on contractual agreements yet some are overdue since December 2008! It is not isolated cases but it is a general tendency that larger customers are slower to remit their dues.

A good principle is to do to others as you would like to them to do to you. If you have a pre-paid mobile phone and you run out of credit it simply stops and you can not make any calls. Suppliers to a mobile companies are all too scared to stop servicing their suppliers as competition is stiff. I personally have overheard senior financial officials working for large mobile companies boasting that they have moved payments of their creditor out by months.

If we in Africa want to excel and grow we need to start at basics like honesty, trust worthiness. Reputation take a very long time to build, but it can be lost in a moment of irresponsibility. The wisdom of letting the ownership of African Mobile companies to outsiders (not from Africa) stands to be debated.

You should read P. W. Dunn’s post Do Contracts Mean Anything in Africa? Download or on the web

Never the less I believe Africa has a great future due to its people and natural resources!

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