Category: Business

Hurdles and hope: Doing business in Luanda

Angola usually appears near the bottom of rankings that quantify the ease of doing business in a particular country. The most recent Doing Business report ranks Angola in 179th place out of 189 countries. Corruption is rampant and institutionalised – Angola is ranked 157 out of 176 countries on Transparency International’s Corruption Perceptions Index. The costs of opening a business are very high, the entrepreneurial climate is fraught with obstacles, and the bureaucracy is gloriously inefficient.

Despite all this, I left my corporate job in New York City earlier this year and moved back to Luanda to start a business.

Angola is constantly in the news because of its economic boom – ever since the war ended in 2002 and the price of oil, the country main export, has soared, the government has become awash in cash. It even has the apparent luxury of ‘bailing out’ Portugal from its current economic crisis – one just has to look at the amount of Angolan money in Lisbon’s stock exchange. However, the entrepreneurial climate in Angola has struggled to keep up and doing business here is a challenging proposition, to put it mildly.

This summer I started an online micro-enterprise in Luanda with two friends. The start-up operates in the hospitality sector, does not have any paid employees, and so far does not yet pay rent in an office. Still, it cost more than $4 000 and took six weeks to open. Even so, this is a great improvement from just two years ago.

Officially, it’s possible to open a business in Angola in just one day at the Guiché Único da Empresa (GUE), a government institution that greatly simplifies the process. The reality, however, is that it takes much longer. But two years ago GUE was not what it is today, and I’ve been able to witness just how much more professional and efficient the institution has become.

Once we had our start-up legalised and our business model prepared, we were ready to start operations and set about finding and contacting potential clients. As any visitor to Luanda will quickly realise, traffic in the capital is an absolute nightmare. If there is ever a study done on just how much Luanda’s traffic negatively impacts the country’s economic output, I’d be first in line to read it. With this in mind, we had to be very creative with how to get the most out of the day, how to meet with different clients in different areas of the city, and how to squeeze in time for a quick lunch. With a bit of finesse, a willingness to experiment, and a very open mind, we learned to adapt our schedules and temper our expectations.

A view of Luanda's Central Business District taken on August 30 2012. (Pic: AFP)
A view of Luanda’s Central Business District taken on August 30 2012. (Pic: AFP)

Each country has its own business culture and its fair share of rather quirky norms. When it comes to communication in Luanda, introductory emails are overly formal and people love to give themselves important titles. Their e-mail signatures are coveted, elaborate markers of glory.

Most people have two phones – one SIM from the country’s two mobile phone networks in each. Nothing gets done on Friday and if Monday is a holiday you can expect people to take Friday and perhaps even Tuesday off.

Pray that your workplace is adequately equipped with a proper generator and water supply, because the city’s infrastructure is very weak. If it rains, chaos will ensue. The city’s roads and sewage system are badly built and not equipped for rain, as the water has nowhere to go. The already dreadful traffic worsens and some areas of the city resemble Venice with its canals.

Luandans have learned not to be overly specific with time and know to give generous leeway when it comes to people arriving late to meetings. Sometimes, the situation is simply outside of their control – in our city, anything can happen on the way from point A to point B.

People love to feel important. Often, in order to speak with the head of a company or a member of government you’ll need to write a letter and coax the secretary into letting your unimportant self speak to her almighty boss. On the other hand, a phone call is always better than an email and a lot of importance is given to interpersonal interactions.

Despite the setbacks and the long list of things that need improvement, the atmosphere in the city is incredibly electric. Money flows and liquidity is high. It seems everyone is hustling, everyone has a side business, everyone has cash money. I get very excited when I see people my age opening their own businesses, acting on their ideas, helping each other out, and generally making a difference, however small.

The most important thing about hustling in Luanda is surrounding yourself with doers and believers – friends and associates who believe in themselves, their ideas and their capacity to help develop this country of ours.

Claudio Silva is Angolan. He has spent time in New York, Washington DC, Lisbon, Reading (UK) and attended university in Boston. In 2009, he started Caipirinha Lounge, a music blog dedicated to Lusophone music. Claudio contributes to several other blogs including Africa is a Country and Central Angola 7311. Connect with him on Twitter.

Auction signals the continuing rise of Kenya’s sizzling art scene

Last Tuesday night, Nairobi held its first major, international commercial auction of East African art. The auction, organised by the Circle Art Agency, featured 47 works from 43 artists from six countries spanning the last four decades. In terms of sales, it was a huge success, with 90% of the works going for a combined Ksh18.5-million ($216 000).

But in a region long ignored by serious art collectors, and in a city that has mainly catered to foreign art buyers, the auction’s biggest achievement was that over half the works sold to Kenyans. Though that fact is partly a symptom of the ‘Africa Rising’ story of growing middle classes, it also marks an arrival for an unlikely city that has forged a unique modern art history.

“Kenyans like a party”
On the surface, Nairobi is perhaps a surprising art centre as it has little or no art infrastructure. The city has no renowned university art programmes and only two professional galleries, both of which operate in private homes to stay afloat and take tiny percentages so they can keep on board artists who would otherwise sell from their own studios. Kenya more broadly has no art education in government schools or significant public art installations. And beyond a few graffiti artists and political cartoonists, visual art is not on most Kenyans’ radar. The government is so out of touch with local art that it sent Chinese artists to this year’s Venice Biennial to fill the Kenya pavilion.

Yet behind the scenes, Nairobi’s art scene hums with improvised vibrancy. In slums, self-taught artists work in collectives where artists sleep, eat, and create together, pooling profits under the tutelage of an established name. More successful artists share shipping containers as studios. There are showings every week in galleries, private homes, restaurants, and cultural centres, and studios are gathering places for artists, buyers, and hangers-on.

But without a base of buyers who grew up learning about and viewing fine art, groups such as Circle Art have had to be creative in educating and building a market of locals willing to invest in Kenyan art.

“The traditional gallery sort of situation of going to a gallery and running for two or three weeks is not necessarily the best way to bring in a new audience,” says Danda Jaroljmek, director at Circle Art, explaining why they opted for an auction. “Kenyans like a party. By having a big noise, some glamour, a sort of party atmosphere, that’s perhaps a better way of doing it.”

Circle Art gives city art tours to galleries and collectives, and hosts collectors clubs to teach interested Kenyans about the history of local artists. There are ‘M/eat The Artist’ dinner parties in private homes where artists show and sell their work, and most studios are available for walk-ins whereby people can watch the artists in action and buy directly from the source. In Nairobi, art is interactive.

“It’s the story of Kenya,” says artist Gor Soudan (31) from his cramped apartment studio in the city’s Kibera slum. “The government, the banks were not working properly so M-Pesa [a mobile money service] came up to bank the poor people. So that’s the way the art scene is growing. By need and vision.”

Ugandan artist Geoffrey Mukasa's 'Lady in Green' sold for Ksh 563 520. (Pic: Circle Art Agency)
Ugandan artist Geoffrey Mukasa’s ‘Lady in Green’ sold for Ksh 563 520. (Pic: Circle Art Agency)

Soudan, who was featured in the London’s 1:54 fair of contemporary African art last month, weaves human figures using metal wires from tyres burnt in riots. His home is a mini hub for local artists, and within walking distance are two other slum collectives. At one, artists weld scrap metal into sculptures and paint dreamscapes on Chinese-made plastic Muslim prayer mats.

Artist Paul Onditi, whose painting Half Life sold at Tuesday’s auction for Ksh704 400 ($8 200) says the fact that these many artists have little training means they make better art. “Here is a place you get self-taughts and they gamble around,” he says. Onditi is actually one of the few here who has received some formal training, but like his fellow local artists loves to experiment, making paintings by a long process of printing digital pictures and transferring them, through a four step chemical procedure he developed, to antiquated plastic printing press boards that he covers with oil paints.

Paul Onditi's 'Half Life'. (Pic: Circle Art Agency)
Paul Onditi’s ‘Half Life’. (Pic: Circle Art Agency)

Painting politics

Kenya has long been known for its untrained but exciting artists. The ‘naïve’ movement, so called because the untutored artists never studied things like perspective or art history, dominated Nairobi’s scene for decades. Artists such as Sane Wadu, Wanyu Brush, and Jak Katarikawe painted surreal scenes of animals and rural life with expressive colours, and were marketed to foreign buyers as ‘untouched’ modern African artists.

These artists are still revered in Kenya and internationally – a six-panel painting by Wadu sold for Ksh1.5-million ($17 000) on Tuesday – but in the last decade, a new group of contemporary artists have become the big names in Nairobi. This second generation – of Onditi, Soudan, and others – is often just as untrained, but is connected through the internet to global conceptual trends. Notably, these younger artists are more eager to take on political issues now that Kenya’s public space is freer under multi-party democracy.

Peterson Kamwathi's 'Nchi 1 Barcode'. (Pic: Circle Art Agency)
Peterson Kamwathi’s ‘Nchi 1 Barcode’. (Pic: Circle Art Agency)

Nchi 1 Barcode, for example, a woodblock by Peterson Kamwathi that auctioned for Ksh375 680 ($4,400), shows the Kenyan flag next to a barcode, questioning the country’s nationhood. Joseph Bertiers, a former painter of homemade signs, makes Bruegel-esque paintings of partying politicians, one of which, The World’s Craziest Bar, sold for Ksh821 800 ($9 600) on Tuesday. Onditi’s paintings show Nairobi’s congested slums superimposed on slave ships, while Soudan’s sculptures are made literally from the ashes of political violence.

'The World's Craziest Bar' by Joseph Bertiers (Pic: Circle Art Agency)
‘The World’s Craziest Bar’ by Joseph Bertiers. (Pic: Circle Art Agency)

Even Wanyu Brush, an old master known for delicate paintings of safari animals and village folk, has moved to tougher subjects and styles in the last few years, with dark lines, jagged brushstrokes, and starker colours seen in his epic Never, Never, Never Again, painted in the wake of Kenya’s 2007/8 post-election violence.

“What you are your seeing right now is Nairobi being activated,” says Soudan.

Still, many Kenyan buyers avoid such cutting edge, confrontational works, preferring decorative pieces instead. Artist Beatrice Wanjiku, for example, who paints distorted human forms and anguished mouths, was not featured in the auction, while a piece by Richard Kimathi, who paints unsettling blue portraits of child soldiers and gaunt animals, was one of the few under the hammer that did not sell on Tuesday.

It will be fascinating to watch where the new attention pushes Nairobi next. Is there momentum to develop more traditional galleries, or will the city continue with self-taught artists and an informal flair? However things progress, what’s clear is that Nairobi has some very high calibre art, and Nairobians are noticing.

Jason Patinkin for Think Africa Press, where this piece was first published. 

Kigali fashion week puts Rwanda on the style map

It is normally the catwalks of Lagos and Johannesburg grabbing the limelight, as African fashion industry grows in stature around the world. But the Rwandan capital put in a bid for style glory at the weekend with the launch of the second annual Kigali fashion week.

Designer Sonia Mugabo, who lost grandparents, cousins, aunts and uncles and friends in the genocide nearly 20 years ago, was one of 10 local designers whose work was showcased at Friday night’s show with help from the organisers of the New York fashion week.

Although Rwanda does not have a fashion school, Mugabo says the tragic history of her family has made her more determined to follow her desire to be a designer.

“When I was doing graphic design in college, my parents asked what is she doing?” says the 23-year-old, who studied in the US and interned at Teen Vogue. “Fashion is a luxury here, not everyone can afford to be fashionable and our culture is very conservative so people think it’s too showy. But I knew that’s what I wanted to do with my life.

“I think people here don’t understand art as a whole concept. They don’t know what art can do for a country.”

Mugabo and her friend Candy Basomingera (30) launched their women’s range Afrikana Exquisiteness in August.

LDJ Productions, the company that runs New York fashion week, believes Rwanda it has the potential for a strong fashion industry, after the country was recently ranked as the third easiest place to do business in sub-Saharan Africa.

It has provided technical support and training for Kigali fashion week. “It’s not about giving money for us, it’s about giving our time and expertise,” says LDJ chief Laurie DeJong, who’s also worked on fashion weeks in Miami, Toronto, Los Angeles and Mumbai.

“The talent here, no one’s tapped into it. But the designers are so serious and dedicated and so enthusiastic. They really want to learn more than anything.”

A model in one of the creations from Sonia Mugabo's Africana Exqusiteness range. (Pic: by G.R. Vande weghe, Illume Creative Studio)
A model in one of the creations from Sonia Mugabo’s Afrikana Exqusiteness range. (Pic: G.R. Vande weghe, Illume Creative Studio)

For the past two years DeJong has mentored self-taught designer Colombe Ituze Ndutiye, who launched her INCO icyusa label in 2011. Ndutiye’s pieces, which include denim and cotton dresses and skirts teamed with traditional accessories, are made with the help of genocide widows through Canadian initiative Centre César.

“When I started the fashion industry was not there, people were confused,” says the 25-year-old. “Now there’s a lot of awareness.”

Friday night’s show featured Mugabo and Basomingera’s creations, which the former described as “vintage and Victorian-inspired”.

“My pieces are fully covered because I don’t feel like a woman should have to reveal too much to be beautiful,” says Mugabo, who is hoping to find local shops to stock her designs but also plans to sell online.

A model in one of the creations from Sonia Mugabo's Africana Exqusiteness range. (Pic: by G.R. Vande weghe, Illume Creative Studio)
A model in one of the creations from Sonia Mugabo’s Afrikana Exqusiteness range. (Pic: G.R. Vande weghe, Illume Creative Studio)

LDJ is also helping to build an arts school in Rwanda with local firm House of Fashion, which was set up to develop the Rwandan industry. But its chief executive, John Bunyeshuli, also has his sights on Rwanda’s neighbours. He hopes to stage Burundi’s first fashion week next year in the capital Bujumbura.

Amy Fallon for the Guardian

Libya aims to become tourist hotspot of the future

Ikram Bash Imam freely admits it is not an easy task to persuade a sceptical world that the “new” Libya, still awash with weapons and rival militias, is a holiday destination worth considering.

There is no question about the pull of attractions: more than 1 000 miles of pristine Mediterranean beaches, magnificent Roman and Greek ruins, palm-fringed oases and Saharan troglodyte caves. And while Libyan cuisine may lack the sophistication of its Maghreb neighbours, the country is remarkably unspoilt.

“Libya is a beautiful place and we are a hospitable people and we have much to show to visitors,” says Imam, tourism minister in a government whose prime minister, Ali Zeidan, was briefly, but embarrassingly, abducted by gunmen in Tripoli last month. (“It’s true that this is a very challenging issue,” she says.)

Young Libyans in the Mediterranean Sea off the coast of Tripoli. (Pic: AFP)
Young Libyans enjoy a dip in the Mediterranean Sea off the coast of Tripoli. (Pic: AFP)

Muammar Gaddafi’s violent demise at the hands of Nato-backed rebels two years ago has left the north African country open to the world for the first time in more than four decades. But the barriers to tourism are daunting: dozens of heavily armed militias, a desperately weak central government, jihadi terrorism and, to some, the threat of state collapse.

The scale of violence is exaggerated by the media, says Imam, receiving visitors and well-wishers at the Libyan stand at this week’s World Travel Market in London’s Docklands, a pulsating mass of laminated-badged industry insiders struggling under the weight of brochures, DVDs and posters.

“Everyone focuses on the violence but most armed clashes are between [Libyan] individuals and groups. It is not a war. When young people can get back to work and the economy is more normal and we have our elections and constitution they will hand in their weapons.”

Sensibly, Imam is taking the long view and moving cautiously. The short-term plan is first to build up domestic tourism and raise revenues to 4% of GDP over the next two years. International tourism comes after that. Diversifying employment away from the dominant energy sector is an important element of the government’s overall economic strategy.

Urgent work needs to be done. The Unesco-recognised world heritage sites at Leptis Magna and Sabratha are still badly neglected, though plans are under way to develop the lush hills of Jebel Akhdar, south of Benghazi, and Jebel Nafusa in the western mountains.

The ancient Roman city of Sabratha used to attract more than 20 000 foreign visitors annually before the 2011 conflict that ousted Muammar Gaddafi. Now the temples and mosaics overlooking the turquoise waters of the Mediterranean are usually deserted. (Pic: Reuters)
The ancient Roman city of Sabratha used to attract more than 20 000 foreign visitors annually before the 2011 conflict that ousted Muammar Gaddafi. Now the temples and mosaics overlooking the turquoise waters of the Mediterranean are usually deserted. (Pic: Reuters)

“We have to be realistic and we have to be honest about what we say and promote what we have,” says Imam. “The new Libya will not be closed to the world. We were cut off for too long. We don’t want to have hundreds of thousands of tourists coming without the infrastructure and services to receive them with high standards and in an honourable way. We need to lay the foundations for our industry.”

Libya is not entirely a blank slate. Modest growth began in Gaddafi’s final years, with some niche adventure travel and several spectacular hotels built in Tripoil – including the lavish Turkish-owned Rixos, where foreign journalists were virtually imprisoned during the revolution, and the supposedly secure Corinthia, the scene of Zeidan’s kidnapping. Later this year an international marathon is being held at Ghat deep in the Sahara.

Other practical problems include the difficulty of getting tourist visas from Libyan embassies: in one change, group visas can be obtained by travel companies on arrival. And friendly governments, including the UK, advise against all travel to parts of the country – including Benghazi and Derna – and all but essential travel elsewhere in Libya. The Foreign Office cites “a high threat from terrorism including kidnapping”. It adds: “Violent clashes between armed groups are possible across the country, particularly at night. You should remain vigilant at all times.”

Imam also agrees that Libya’s identity as a conservative Muslim country poses problems for mass tourism from the west. But it should, not, she suggests, be an insuperable one. “When I am in London and it’s raining, I need an umbrella. Yes we are Muslim society and we don’t want to offer alcohol. If people want alcohol they can go elsewhere.

“Our plan is that when you come to Libya you will enjoy the Libyan experience. Libyans are not closed-minded. But visitors must respect the country and its values.”

Libya’s problems are not unique. Nearby stands in the Middle East and North Africa section at the World Travel Market include a large but very quiet Iraqi one – where gaily coloured Beduin carpets and brass coffee pots have no obvious effect on countering the negative impact of Baghdad’s repeated suicide bombings. Tunisia, one of the few relatively bright spots of the Arab spring, is moderately busy. On the Egyptian stand – complete with plaster sphinxes – the emphasis is on Red Sea resorts far from the tensions of Cairo. Palestinians are trying to promote Jerusalem and Bethlehem in competition with Israel.

Lebanon’s stand displays fine wines but is also quieter than usual – tourist revenues affected by the war next door. Syria has not even been represented for the past two years. “There’s no point,” said a glum Arab tour operator. “It’s suicidal to even go there.”

Women dig into Zimbabwe’s male-dominated small-scale mining sector

The face of Lydia Madhoro (25) is dusted red from soil as she and her three female colleagues take a brief lunch break. They have been working since dawn on their gold mine in Zimbabwe’s Mashonaland Central Province.

Their hand-dug shaft has reached about 10m in depth, and their conversation revolves around estimates of how much they will make from a pile of gold-bearing excavated rocks. The ore still has to be taken to a miller about 15km away to be crushed, after which it will be mixed with water and mercury to separate out the gold.

Truck operators who transport the ore charge them US$50 a ton, and casual labour used for the loading demand $10 for the same quantity. The millers charge a fifth of the gold obtained.

“We are at work almost every day of the week, going underground for the ore. This is extremely hard work that has been associated with men for a long time, but we are now used to it. We have to do it because, as single mothers, we must feed our families,” Madhoro told IRIN.

The four women formed a syndicate in 2011 to acquire their 0.8-hectare claim near Mazowe, about 50km northeast of the capital, Harare. Madhoro and her partners are certified gold miners and sellers from the mining town of Bindura, about 40km away. They paid about US$1 200 for the registration, prospecting licences from local administrators and surveyor’s fees.

In a good month, they make as much as $2 500 from the mineral, which they sell to the government-owned Fidelity Printers at $50 a gram. The money is divided among the partners in equal shares after paying the millers’ fees and transport costs; the proceeds have so far been used to build basic housing.

“Even though we are not yet making that much money, the good thing is that we have stood up as women to fend for ourselves. We are actually doing better than some men, and I am proud of the fact that I single-handedly feed my twin daughters and can afford money for their primary education, clothes and other basic needs,” Madhoro said.

"There are tangible gains for women who have joined the sector as small-scale miners, especially in gold and chrome, as they can afford household nutritional needs, pay school and medical fees, and even afford some modest luxuries." - (Pic: Reuters)
“There are tangible gains for women who have joined the sector as small-scale miners, especially in gold and chrome, as they can afford household nutritional needs, pay school and medical fees, and even afford some modest luxuries.” – Eveline Musharu (Pic: Reuters)

Breaking barriers
Zimbabwe’s economic malaise, now more than a decade old, is seeing women take on work that has traditionally been deemed the domain of men. Madhoro and her colleagues’ mining enterprise is far from unique, she says. She is aware of numerous women-owned and operated mining syndicates in the province, in districts like Bindura, Shamva and Madziwa.

Eveline Musharu, president of the 50 000-strong NGO Women in Mining, which helps women start mining ventures, told IRIN: “Women are breaking the barriers by venturing into mining, an industry that is dominated by men. There are tangible gains for women who have joined the sector as small-scale miners, especially in gold and chrome, as they can afford household nutritional needs, pay school and medical fees, and even afford some modest luxuries.”

The national NGO was established in 2003, and its members are mainly drawn from the ranks of the rural poor, the disabled, widows, single mothers and those living with HIV and Aids. Musharu said women are turning to mining as an economic lifeline because, given the vagaries of the climate, subsistence farming is no longer a guarantee of putting food on the table.

Madhoro’s route to mining began when she became pregnant by a teacher, dropped out of school and gave birth to twins. Her parents disowned her, and she went to live with her grandmother. When her children were six months old, she became an illegal miner. One night, after digging for gold along the Mazowe River, she was nearly raped by a group of other illegal miners; after that, she tried to make a living as a hawker. Then she learned about Women in Mining.

When she approached the NGO for advice on how to enter the mining sector, the organization suggested she form a women’s syndicate before applying for a prospecting licence. She chose her three partners because they were already friends and stayed in the same suburb in Bindura.

Boosting incomes
The six-year-old Zimbabwe Women Rural Development Trust (ZWRDT), which has more than 500 members and operates mainly in the Midlands and Matabeleland provinces, also helps women get a foothold in the mining sector. More than 100 members of the organization are miners.

ZWRDT director Sarudzai Washaya said 35 of the members, all of whom had previously worked as illegal miners, had been coached to enter the sector legally, and have seen their incomes grow as a result. According to Washaya, mining legally has several advantages, including eliminating the risk of being arrested and having one’s minerals confiscated. Legal miners are also guaranteed of a formal market where they are safe from thieves.

“There is a lot of keenness on the part of rural women to get into mining as they realize the opportunities that the sector offers. Chiefs and district administrators help our members identify and obtain mining claims, and ZWRDT facilitates the acquisition of prospecting licences, and prospective miners pay a joining fee of $20,” Washaya told IRIN.

“We have realized that it is important to build confidence in women, [showing them] that they can perform just as well as, if not better than, the men who dominate the mining sector. In some cases, the women are now employing men, and a few have even managed to buy luxury cars,” she said.

Capital often out of reach
Accessing capital for mining ventures remains one the biggest obstacles for women. Mining equipment, such as compressors for milling ore and pumps to drain water from mine shafts, are generally unaffordable, and women miners have to resort to renting equipment at high costs, eroding their profit margins.

Virginia Muwanigwa of the Women’s Coalition in Zimbabwe, a national NGO for the advancement of women, told IRIN: “Because our society is dominated by men, it is difficult for women to produce collateral when approaching banks. They don’t have title deeds to land, especially in rural areas.”

She said, “If well supported, women can use their involvement in mining to fight the many livelihood vulnerabilities they face. Women miners can benefit a lot from a revolving fund that the government and donors can help establish and from which they can borrow, as banks are unwilling to lend them money.”

The lack of equipment makes mining an even more arduous occupation. “Some of the women have given up on mining because of its high demands and gone back to face poverty in the villages. There is need for the government to give us support because, currently, we are struggling to sustain ourselves in mining,” Washaya said.