Insights

Kina Advisory provides insights on topical issues facing the industry today as companies operate and invest in Africa. Read through our latest thought pieces that give an insight into Kina’s way of thinking, as we discuss ideas that challenge the way business in Africa is conducted, offer solutions to those challenges and highlight the success of others.

 

True local partnerships benefit everyone

29|01|2015

If a country’s economic growth is not broad and inclusive, it can create societal disparities that increase investment risks for business. In order to succeed, companies are expected to contribute to broader economic and social development. If these expectations are not met, there can be significant disruptions and delays to projects. From an investor perspective, this is not about corporate social responsibility (CSR), or even about simply generating goodwill – as laudable as these objectives are. It is about creating an environment that is conducive to long-term, sustainable business that creates value for shareholders and all other stakeholders.

Example – the extractive industries

The oil and gas and mining industries can have significant, positive transformative impact on countries. Responsible companies with long-term perspectives engage with governments and other stakeholders, including impacted local communities and local businesses, as early as possible on entry into a country.

The largest direct contribution they make to host countries is through royalties, taxes and, where applicable, equity participation in projects. However, over the life cycle of projects, companies can also contribute to broader and more inclusive economic growth by employing citizens, purchasing goods and services from local companies or even partnering with them on specific projects. If local capability does not immediately exist, companies can invest in the education and capacity building of local employees and suppliers. Where infrastructure is lacking, companies can invest as partners with governments and other businesses to develop the necessary infrastructure that can then have broader economic and social uses.

Companies need to work with governments and other relevant stakeholders as part of core business negotiations to determine which aspects of national development priorities they can legitimately contribute to in a meaningful way. Once there is agreement, the responsibility for delivering on those projects should be integrated into the company’s operational processes rather than delegated to CSR.

At the end of it all, companies can only be of value to their stakeholders if they are successful and profitable. The vast majority of shareholders invest in companies because they believe their core businesses will provide them with a decent return. But companies investing in Africa will not be able to provide such returns unless they understand, take into account and address the socio-economic development challenges that countries are facing and which directly or indirectly impact their bottom line. Well thought-through, negotiated and agreed partnerships between companies and local stakeholders go a long way in creating outcomes that benefit all.

Rosalind Kainyah, MBE, Founder and Managing Director

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What we are up to & News

04|04|2018

Key to investment success in developing countries

Published in the The New Model Corporate Affairs Director’, Managing Director Rosalind Kainyah discusses understanding the socio-economic environment and creating the right conversations as key to success in investing in new markets in developing countries and the role of the Corporate Affairs Director. Click here to read the full article.

29|03|2018

Ghanaian women empowered in business

Empowering women in business is a key aspect of the fifth sustainable development goals. The 2018 Mastercard Index of Women’s Entrepreneurship (MIWE) names Ghana as having the highest percentage of female business owners at 46.4%.

It is encouraging to read about businesses led by women that also consider environmental sustainability, such as the collaboration between Redavia, a German rental solar company, implementing a solar farm for the Ghanaian hospitality group Linda Dor.

27|03|2018

Congratulations to the Young CEO of the Year

Kina Advisory congratulates Dr Amy Jadesimi, CEO of LADOL for winning the Young CEO of the Year award at the 2018 Africa CEO Forum. Amy is a role model for young and old, men and women alike https://t.co/stvCAA5FEr.

19|12|2017

Commemorating Harvard Kennedy School’s Professor Calestous Juma

We at Kina are shocked by the passing of Kenya’s and Harvard Kennedy School’s Professor Calestous Juma. It’s hard to believe that the boundless energy with which he engaged the world through all media on innovation and international development is gone forever. Our last such interaction followed his piece on the limits of leapfrogging for Africa’s development. Inspired by the thought piece, I gave a perspective from the business angle, to which Calestous further responded to me privately.

We are fortunate at Kina to count one of his former students as one of our team. Like the millions of others in Africa and the world who loved his brain and followed his work, we all claim a piece of Calestous, but we can’t claim to understand the grief of those who were closest to him. We can only offer our heartfelt sympathies and continue to build on and implement some of the ideas he shared to help shape Africa’s development.

05|12|2017

Rosalind shares insights on Africa’s hidden figures with This is Africa

Managing Director, Rosalind Kainyah shares her insights on how big business can play a role in bringing the ‘hidden figures’ in Africa’s informal economy into the formal. Click here to view article.