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.

 

VW’s ESG Failing

01|11|2015

News on Wednesday that VW slumped to its first loss in 15 years just shows the damage a failure of ESG can wreak on even the biggest and seemingly most inviolable companies. It put me in mind of a good quote I read in the FT the other day.

“ESG is no longer a specialism … but integral to the majority of markets and business models.” Exactly!

Here is the full quote:

“With respect to ESG specifically, the analysts say it is no longer a specialism segmented from the main market but integral to the majority of markets and business models in our view. Furthermore, the prominence of politics, regulation, resource usage and climate change are likely to keep this issue on the front burner for some time to come.”

The FT went on to show a breakdown of potential “ESG black swans” to be aware of for the future. Regulation, politics and resource usage come very high up the list. All critical factors that need to be borne in mind when it comes to investing in Africa.

Rosalind Kainyah, MBE, Founder and Managing Director

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Building profitable businesses in Africa: A triangular construct theory

29|10|2015

Foreign companies investing and operating in Africa often talk about the challenges of getting necessary approvals from government to develop or move their projects forward. In a conversation with a seasoned investor in Africa, we discussed the need for businesses to have, not just conversations, but the right conversations with governments and with society. I described this as “the triangular relationship theory”. At one point of the triangle is government, and at the other two business and the society.

Getting to grips with how these three points of the triangle interact could be the key to sustainable business and unlocking long-term profits.

  • Government and business: The greatest concern, to put it mildly, of any government is to lose the acceptance of society. Even your most ardent dictator needs to feel wanted.  Those in government know they can be voted out or overthrown at any time.  Businesses are either not aware of this fundamental anxiety of government or, if they are, of its implications.   Conversations with governments are often focused on what the business wants, and sometimes wants NOW.  Instead, a company can gain a competitive edge by demonstrating it appreciates the problems that are top of a government’s list of priorities. And these are often not the same as what is top of the company’s priority list.  Companies need to include in their conversations with government ways to address problems of national importance. They need to demonstrate the benefits they can bring, not just in terms of tax revenue, but provide tangible data on how they will boost the local economy through local employment; develop a local supply chain; support initiatives that develop job-relevant skills and give citizens opportunities for social mobility; and even help a country move further along the industry value chain.
  • Business and society: Businesses also need to have the right conversations with the right segments of society.  Often, companies have a stakeholder map which has the name of every single person they think could possibly impact their business, be influenced by their business, or become their advocates.  However, the reality is that each business should look hard at the eco-system around it. A company’s best advocates are those closest to home – employees and their dependents, local suppliers and their employees and dependents, and communities directly affected by operations of the business.  I genuinely believe helping society is a bona-fide business strategy that will reap long-term rewards.
  • Society, business and government: In short, each business should look hard at the eco-system around it and target the people with ‘skin in the game’ – employees, local suppliers and impacted communities.  They are the groups of people that a company should engage in conversation explaining their business plans and objectives – in ways that are accessible and understandable – and make the beneficiaries of their social investment projects.     They are the groups of people who will not only speak convincingly on behalf of the company but are also an important part of the society that government wants to please.  But to be true advocates, they must genuinely feel they have a meaningful share in the prosperity created by the business.

Nobody says this is easy. Many companies will have experienced the day-to-day frustrations of doing business in an African country: the stultifying bureaucracy, inability to find reliable local suppliers and the shortage of local skills. In many ways, one could argue this is the fault of governments. However, it is all too easy for companies to be vilified, especially when they fail to benefit society more widely. Pointing out examples of exploitation and neglect by the corporate world is a perennial vote winner.

That is why it is so important for companies to convince governments of the positive role they can play within communities. Show them they are investing for the long term.  I passionately believe that responsible business can create growth that is genuinely inclusive. To achieve that growth we don’t just need to have conversations with government and society, we need to have the right conversations with government and society. I started Kina to help foreign investors in Africa do just that.

Rosalind Kainyah, MBE, Founder and Managing Director

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Article by Oil Review Africa: Socio-economic investment

20|03|2015

“As a pan-African socio-economic advisory firm, our objective is to deepen economic empowerment. We identify socio-economic tools to help international companies mitigate the risk and leverage opportunities, of doing business, and support local African companies on building up their capabilities and their social, governance, and human resource development standards so that they can become part of the value chains of international companies.”

Read full article here.

Rosalind Kainyah, MBE, Founder and Managing Director

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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

22|07|2019

Cranfield Names Rosalind Kainyah in Top 50 “BAME” Female Leaders

The Kina Advisory team is delighted to announce that our Managing Director, Rosalind Kainyah, has been named as one of the top 50 Leading Females professionals of Black, Asian and other Minority Ethnic (BAME) women by Cranfield University.  The 50 inspiring women come from backgrounds historically under-represented in the senior leadership pipeline.  “Click Here” to read the full post

25|04|2019

Global Trade Review, West Africa 2019 and Rosalind Kainyah

Kina Advisory is delighted to confirm that Rosalind Kainyah, our Managing Director is one of the speakers at this year’s Global Trade Review, West Africa 2019.  Rosalind will be using her expertise to help explain the following, “What needs to be done to stimulate foreign direct investment in west Africa?”

In this interview conducted by Iyabode Soji-okusanya (Head Of Corporate Banking at Access Bank Plc) Rosalind will be touching on areas such as:

  • Ease of doing business: What are the main operational, financial and physical trade concerns for foreign investors?
  • Regulatory framework: To what extent is consistency an issue? Which West African markets and regulatory areas are of greatest concern? & What would investors like to see from regulators?
  • Physical infrastructure: To what extent is a lack of physical connectivity a barrier to fixed investment?
  • Who will be West Africa’s key partners in building a stronger, more resilient economy? What do investors see as the key areas of value they can bring to the region?

To see a full breakdown of the 2 day event, please click the below link.

Global Trade Review, West Africa 2019 and Rosalind Kainyah

10|01|2019

Aker Energy announces successful drilling offshore of Ghana

As a Non-Executive Director on the Board of Aker Energy, Rosalind Kainyah (Managing Director of Kina Advisory) is thrilled by the news of results of the first appraisal well drilled by Aker Energy offshore Ghana. The hard work begins but Rosalind is confident that Aker Energy will be an exemplary partner in Ghana – for the benefit of the country as a whole | To read the full press release, please click here. 

01|11|2018

Rosalind Kainyah | Arise Invest Interview About Cal Bank

MD of Kina Advisory, Rosalind Kainyah has been interviewed by Arise Invest,  Arise is a leading African investment company backed by three reputable cornerstone investors, namely Norfund, Rabobank, and FMO.  Rosalind has done many interviews relating to investing in Africa, but this article focuses on her role as a board member of Cal Bank, “what excites her about this role” & “why become involved with Cal bank”, as well as looking at her background. We hope you find the article enlightening (Click Here for the full Article).

12|10|2018

IWF Ghana | Generating Sustainable Wealth in Ghana

Rosalind Kainyah, Co-President of the International Women’s Forum Ghana (IWF Ghana) will be hosting the Forum’s first weekend retreat. With an all-female audience of around 50 Ghanian leaders, this retreat will focus on the common thread which binds the audience together: Generating Sustainable Wealth: How to create viable local companies which can become partners or suppliers to international companies in sectors like: oil & gas, mining, energy, construction and Infrastructure. Rosalind and other guest speakers will answer this question and many others from our business stand-point. (more…)