Opinion Where tigers and dragons can get along
There is enough in Africa for both Chinese and Indian businesses....
A recent cover for Forbes India features drawings of a tiger and a dragon,and the two fierce predators are seen in battle over the prized catch: Africa. The Big Game is the title of the story. It is a clever way to bring attention to the growing importance of Africa to the future economic growth of India,the tiger,and China,the dragon.
However,in all of my travels throughout Africa during more than two years of research for my latest book,Africa Rising: How 900 Million African Consumers Offer More Than You Think,it never seemed like a trade war of any sort on the ground. I agree with Minister of State for External Affairs Shashi Tharoor when he recently said that competition is not the point in Africa.
What is the point,then?
The bottom line is that Africa will soon have a billion consumers. And just like consumers in other developing countries,they want the best for their children,better than what they had. They will need food,clothing,soap and shelter,and desire cell phones,education, medicine,cosmetics,music,television,toys,cars,computers and movies.
In short,there are opportunities for everyone interested in doing business in Africa. And yet,India and China do deserve credit for leading the way. They have effectively demonstrated to the rest of the world that Africa isnt a charity case. While those in the West were still seeing huts,savannahs and zebras,India and China were busy building partnerships with the many exceptional business leaders and entrepreneurs born and raised on the continent,in all 53 countries.
All across Africa I saw brands from India and China coexisting and thriving. In Johannesburg,I visited a sprawling marketplace named China Mart with 126 shops filled with inexpensive clothing,shoes and phones from China. Nearby was another market called Asia Centre with products from India such as leather goods,clothes ,electronics and pharmaceuticals. In Rwanda and Nigeria,I saw,side-by-side,two-wheelers from India and China used as cabs to shuttle visitors around town.
With so many opportunities at home,why are Indian and Chinese companies in Africa? They have come because they instinctively recognise the African opportunity. They understand it because they have lived through it. In speaking with leaders of Indian companies who are active in Africa,I often heard the comment that this market seems familiar. The demographics of Africa and challenges are not so different from those at home. They have seen the rise of their markets and expect the same from Africa.
Additionally,as the West has focused on providing monetary aid to Africa,which is no doubt very important,a byproduct of the investments made by India and China has resulted in a successful example of the trade not aid way of bringing relief to struggling populations. Like any consumer need,challenge brings along with it opportunity. The lack of reliable electricity in many parts of Africa has created a market for generators and solar cells. Unstable financial systems have led to micro financing and cell-phone based banking. Health problems from AIDS to malaria have created demand for new treatments,generic drugs,testing equipment and insurance. Concern about the environment has led to opportunities in eco-tourism. Entrepreneurship is all around you in Africa. Africa is looking East.
From my point of view,we are quite a long distance from a pitched battle on the African continent between tigers and dragons.
The writer holds the John P. Harbin Centennial Chair in Business at the University of Texas at Austin.He is
co-author of The 86 Percent Solution, and most recently Africa Rising
Share
