Congressman Meeks wants minority business owners to invest in Africa
Economic experts agree Africa is the next frontier for investment opportunities.
The boat came and went the first time around and the Chinese were the first to get on it. Now it’s on its way back, U.S. companies are scrambling to get aboard.
The Economist, reports the 10 fastest growing economies between 2001-2010 were: Angola; China; Myanmar; Nigeria; Ethiopia; Kazakhstan; Chad; Mozambique; Cambodia; and Rwanda.
Between 2011-2015: China; India; Ethiopia; Mozambique; Tanzania; Vietnam; Congo; Ghana; Zambia; and Nigeria.
U.S Congressman Gregory W. Meeks sees enormous opportunities available for minority-owned businesses. On Friday, June 13, along with the Congressional Black Caucus Africa Task Force he hosted “Engaging Wall Street on Power Africa” in New York City. The conference invited investors, lenders, developers, and project sponsors to discuss projects and opportunities for entrepreneurs and business owners looking into “identifying and structuring projects, obtaining finances or guarantees and building partnerships with African entities.”
By 2030, the continent will have the world’s largest workforce. Forty-three percent of the population is below 14 years old. There is a growing middle-class that doubled from 157 million in 1990 to over 326 million in 2010. Africa has more cellphone subscribers than Europe.
Though the spotlight is on sub-Saharan Africa with good reason, the return on investment is more than four times higher than a similar investment here, an obstacle to investing in sub-Saharan Africa is electricity.
There are about 585 million people across the continent without access to electricity. Africa accounts for a sixth of the world’s population, but generates 4% of its electricity. Less than one in three have power. It’s a continent still in the dark and a goldmine for companies looking to light it up.
Ambassador Bisa Williams, deputy assistant secretary for the Bureau of African Affairs agrees, saying “Nigeria is the most populous and has the biggest economy. But the lack of regulations, consistency, and application of the rule of law constitute some logistical and infrastructural problems. Governments have to make energy distribution a priority.”
So if the time is now to invest, what are African American and other minority-owned businesses waiting for? Meeks offers advice for interested business owners: Ask around.
“They haven’t heard what OPIC (Overseas Private Investment Corporation ) is doing, what Ex-Im is doing or what USAID is doing,” he says. His office is working to get the message out. And members of Congress have reached out to get on board.
“We are reaching out to minority-owned associations and organizations telling them to send folks over,’ Meeks says. “I’ve had colleagues come and ask to do something similar with their minority-owned firms. In Miami, Frederica Wilson wants to do something similar. Same thing with Chicago’s Robin Kelly, California’s Karen Bass and Atlanta’s John Lewis and David Scott.”
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So how do minority-owned businesses get to the table? The first step is to get them in the same room.
Meeks to minority businesses: Get in on action in Africa
Minority business owners complain that when African leaders visit Washington they bypass the Diaspora and African American companies, opting instead to meet with big corporations.
Meeks and his staff have marked their calendars for August when African leaders arrive Washington. They plan to get the CBC, African Diaspora Business Community and minority owners together and apply leverage.
“If they want our support, show willingness to do business with smaller firms, not just big corporations,” Meek says. “Have them report the number of minority firms they deal with. They need us for the appropriations and authorization.”
The CBC intends to sit with African leaders and inform them building relationships is a two-way street. That black businesses here can be part of Africa’s booming development.
But Meeks concedes they should make the effort. “They don’t show up. I can’t tell you how often I’m in meetings and asking where’s the diversity? All this money and potential and I’m the only person of color in there.”
He says, “They should partner with companies that can handle million dollar deals. After they make some money, then invest on their own. Also establish partnerships with businesses on the ground and local companies.”
He says there are no guarantees. “You could get burned. All we can do is ensure that there are opportunities for minority business owners willing to take the risk.”
Experts say it’s time to for smaller companies to start asking the right questions. To find out who to talk to and how to get involved.
One expert says, “They should think in terms of economies of scale. It’s hard for African corporations to find small companies. You’ve gotta be known, you’ve gotta get out there.”
The US Department of Commerce says, “You’ve got to come in numbers. You can’t compete with the GE’s. Create trade unions or organize minority Trade-in-Africa webinars to get up-to-speed. Connect businesses with missions traveling there. It won’t happen on emails.”
Says Meeks, “Folks don’t know the proper channels. We should get the information out and advocate for them. The squeaky wheel gets the oil, so we’ve got to keep squeaking.”