Out of the Shadows

{TCB} Why do businesses overlook Africa?

{H. O.} I think there are several reasons. Historically, Africa was never set up as a place to go to to live. You look at the colonization effort. People went there to exploit—take resources out. I think that Africa developed a stigma that it’s a place you really don’t want to go to. So naturally, businesspeople would not want to go to a place that no one wants to go to.

And the other big one is lack of information. When you hear about Africa, most of the time the media is talking about disease and war.

{TCB} What was accomplished at the summit?

{H.O.} Other than just having a great guest list [that included the Ghanaian, South African, Kenyan, and African Union ambassadors to the United States, and the deputy chief of the Nigerian Embassy in Washington, D.C.], this was the first time, as far as I know in this state, that a serious discussion of Africa as a business destination for American businesses took place.

For the local business owner, instead of having to make a trip to Africa to gather information on a potential [business opportunity], you just talked to the trade representative from Nigeria there. As I am speaking with you now, an American company that is working in west Africa is looking at expanding into east Africa.

{TCB} Which company?

{H. O.} Lemna International, Inc. [a Minneapolis-based firm that implements infrastructure projects in emerging economies]. They are taking a very close look at having a presence in the eastern part of Africa. We got the Kenyan ambassador and the Kenyan consulate general [to come here], and told people from Kenya to come and speak to [Lemna] about opportunities there. [Most of the firm’s ongoing projects are located in western Africa.]

{TCB} What else should we know about Africa?

{H. O.} Lemna International really emphasized this: There is a cultural difference between Africa and the United States. For example, when you go to Ghana to seal a deal, it would be almost rude to walk into the room, shake everybody’s hands, and start talking about a deal. Africans tend to move slowly. They will spend 30 minutes talking about everything else except what they came there to do. Unless you understand those nuances, then you won’t develop the kinds of relationships that you need to succeed in that market.

{TCB} Is it true that China is investing heavily in Africa?

{H. O.} There is some controversy there. I’ll be honest with you. I think that while the rest of the world did not think much of African countries as places they could do business, the Chinese moved in very aggressively. In Kenya and Tanzania, for example, I know that a lot of the infrastructure work—such as roads and sewers—has been done by Chinese companies. We spoke with some of the leaders from Kenya. They say that some of the Chinese companies are almost unbeatable. They come in at a good price, they work hard, and they are willing to be there.

So the Chinese have dominated—in oil and gas exploration, and infrastructure. I think they’re far ahead of the West in that.