Manchester’s Africa Week focuses on Diaspora investment

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UK: North West England

By Chantelle Tindall

Manchester played host to the British African Business Alliance (BABA) in celebration of Africa Week, hosted by FieldFisher Solicitors. Manchester was a well-chosen destination being that the city has established historic trade links with Africa.

James Lewis, one of the Firm's partners gave an insight into the nature of their work, which includes advising on contract structures, dispute resolution, and assisting clients through working with local Law Firms to fully understand the necessary local knowledge needed before they commit to any investment. He reiterated the importance of people in the Diaspora when it comes to making business opportunities and investments possible. FieldFisher Solicitors displayed a deep wealth of knowledge about investing in Africa.

It was an opportunity to bring together various groups in the African community with the aim of developing and boosting trade and business alliances. In his address, David Smith – Chairman of BABA, explained the aims and purposes of the organisation. A key purpose is to bring together business leaders in the Diaspora to identify projects they want to see develop in their respective communities. BABA supports viable projects no matter how large or small as long as they have the potential to thrive. Another aim is to share their expertise within the communities to make projects a reality.

Mr. Smith stated that research carried out in London indicated that there are at least 5 to 5.5 million Africans within the UK. By this calculation, it would be impossible to get people from all over the UK all the time in one place. Therefore, the decision was made to bring people together in areas where they live and work to make meetings possible. This was how the Manchester group was formed and how it keeps expanding.

By repeatedly informing people how to make money in Africa, the concept of 'Entrepreneur Packs' developed. Enabling readymade businesses with a proven model to trade with people and carry out projects in their own communities. Networking events like the Africa Week also provides great opportunities to grow projects from within the community. Brexit is a huge opportunity for Africa, according to Mr. Smith. Take Nigeria for example, she needs seven hundred thousand new businesses, employing more than ten people each by the end of 2020 to start reducing the high rate of unemployment, which in itself is a very hard target but if achieved could create twenty million jobs. He further states that these jobs will not be created by large multinationals or even well-established companies like Ford etc., but instead by the small and medium sized sectors. However, those in Africa will have difficulties setting these businesses up thereby requiring assistance and support from the Diaspora; this is where BABA comes in.

It brings professionals together by identifying projects they want to see develop and organizes the expertise to support such project plans and to make valid investment opportunities no matter the location in Africa. Another area BABA hopes to open up business opportunities in Africa is by creating Trade Ambassadors in the UK. Most Financial Directors are already willing to deal with Asia, Australia, Canada and other Commonwealth Nations, but they boycott Africa because trade or business in the Continent is seen as highly problematic. According to Mr. Smith, this is where those in the diaspora need to "step up and get better organised," by making moves to talk to these companies to help them get the much needed representation and to get them a seat at the table. For example, a company in Liverpool has only one representative in Africa, and that is in Nigeria where they sell 100 million units of their products. They have no other representation elsewhere in the continent where their product may also be in great demand. Mr. Smith recognises the potential.

Concluding with a Q & A session, he drew on the fact that on LinkedIn there are 7,500 people living in Manchester who are connected to Africa and it is hoped that by working together, and in conjunction with FieldFisher, all those people will come together to create a Manchester-Africa Business pipeline which will create jobs, business opportunities and generate profits that will be shared locally in Africa for the benefit of all.

In the final keynote advice, from Leticia Lisondja of FieldFisher, she noted that taking an investment to Africa involves humility. The arrogance of "I am the originator" is a turnoff in the Continent which does not help any investor. Africans are very protective of their territory so dealing with them respectfully is essential. She also advised that showing interest in working with them and not just coming to dominate their land but instead harnessing and developing local talent would be to everyone's advantage. The need to employ local people will help to improve the area and also help eradicate poverty.

The need to involve policy makers when trying to invest in Africa is at the core of their message. This is because policies can be changed to their detriment the moment Africans suspect an investor is boycotting them. She also made a clear note for investors to understand, 'Africa is a Continent and not a country.' Doing business in West Africa is not the same as any other geographical zones in Africa, so the need to understand and adapt to their business policies is of great importance.

If the positive reception at the Africa Week is anything to go by, the future looks bright for Africa and British businesses made possible by members of the Diaspora.