A group of young African entrepreneurs brought a dose of reality to a panel discussion on living and working in their homeland at the Africa Business Conference.
Charting a successful career path and making a difference are high on the list of everyone who hopes to return to Africa. But other issues—such as compensation and corruption—bear consideration as well, panelists said. The panel was held on February 28 at Harvard Business School.
Is the entrepreneurial path the best way back to Africa, asked moderator Ladipo Balogun (HBS '00), deputy managing director of First City Monument Bank in Nigeria. Or is it better to start out with a multinational corporation with operations in Africa?
"All roads lead to Rome if you really want to get there," said Karim Morsli, CEO of Rising Data Solutions, a company that launched the first English-speaking call center in Ghana. "An entrepreneur is an entrepreneur, whether he or she decides to set up in Africa or the United States."
Africa is not an easy place to start a business, he added. "If you can go back with experience, you're much better off."
The potential for return on investment enticed him to return to Africa, said Morsli, saying that returns on the Ghana stock exchange averaged over 140 percent last year.
"The opportunities are real, but so are the risks," he said. "Africa is the last frontier in capitalism."
| One of the great things about working in Africa is that you're not submerged in a big company where the difference you make can't be felt. |
| — Ladipo Balogun, First City Monument Bank |
"What's your purpose in life?" asked Vimal Shah, CEO of Bidco, a growing manufacturer of edible oils, margarines, and soaps. "If it's to 'Make a Difference'—to go M.A.D.," he said with a laugh— "Africa is full of opportunity." It all comes down to whether or not one is open to risk. It's entirely possible to lead a comfortable life in Europe or America, "but leadership positions in Africa demand people of this caliber," he said, indicating the audience of young MBAs.
"There is a need," agreed Jil-Alexandre N'Dia, founder of Abidjan.net and JobAfrique.com, an employment Web site in West Africa. "There are things that need to be done."
The compensation question
The question of compensation is an issue for Africans who may be accustomed to a higher salary and standard of living after working abroad, noted Balogun. As an employer, how does Morsli handle compensation?
Any business you work for is operating in an African context, Morsli responded. Its costs need to be competitive.
"Unless there's a strategic need, there's no way to justify expatriate salaries," he said. "You have to be willing to accept that you're part of the local community."
When recruiting, he does take into account that some potential employees have lived a "dual life" outside of Africa and may require special perks, such as occasional trips abroad.
"I think compensation varies from market to market," said Balogun. "One of the great things about working in Africa is that you're not submerged in a big company where the difference you make can't be felt. If that difference translates to the bottom line, you can command the kind of remuneration that you would expect."
Speed money
The reality of corruption can make some entrepreneurs uneasy about returning to Africa, Balogun noted, asking panelists for an inside perspective on dealing with tricky ethical issues.
"In Africa, it's called 'speed money,'" said Shah. If you choose the ethical path, you will encounter delays—but that doesn't mean you won't succeed. "Don't pay a single penny and things will still get done," he said. The climate is different than it was fifteen or twenty years ago, he added, with media attention and public opinion spotlighting the issue.
It's not a good defense to simply say bribes are the local way of doing business, said Fola Ogunsiakan (HBS '00), CEO of IP Direct Nigeria, a satellite network operator that will soon launch a mobile phone service.
"What's wrong is wrong. Once you open that door, it stays open," Ogunsiakan said.
Change will come from people banding together against corruption, not government institutions. "As long as every new addition to the community practices business ethically, we will get there," he said.
If corruption is one fact of life, lack of management expertise is another issue that will take time to resolve.
"That's what is holding back Africa," said Morsli. India is well positioned today because workers emigrated to the United States in the 1970s and 1980s and obtained operational experience. Entrepreneurial vision is great, he said, but it all comes down to making things happen on a day-to-day basis: "That's the missing link." 