[Interview] Frans de Pater, Managing Partner, AfricanWise, The Netherlands
Frans de Pater is former commercial director of Vlisco, Ivory Coast. He is currently Managing Partner at AfricanWise.
His interview with Africa Business Communities:
Would you please introduce AfricanWise?
AfricanWise supports organizations that want to conduct or expand business in Sub-Saharan Africa by supplying project development, business development, interim management, funding, and investment. Also we support African businesses that want to enter the European market by trade and trade development. Our keywords are: understanding business culture, developing inclusive business models, Africa the new world economy, facilitate the making industry, sustainable energy and knowledge transfer.
In which industries does AfricanWise operate and who are your clients?
We operate in any given industry as we can cover this with our network of Project Partners who have lived and worked in Africa, in a wide variety of industries and countries.
Currently we have projects in renewable energy, agriculture, tourism, garment- and textile industry, consumer electronics and industry supplies.
Clients are SME’s and multinationals from various countries. They have in common that they realize that doing business with/from Africa requires long term views and goals. They are used to doing international business and have support from their share/stakeholders.
What are the USP’s of your business?
- Understanding the African (business) culture
- African offices in Nigeria, Kenya and South Africa
- Extensive network of African professionals on the continent: our African Associates
- Knowledge, network, entrepreneurship, but most of all a ‘do’mentality
- Vast network of project partners: professionals who have worked and lived in Africa in various branches, countries and regions
- Access to knowledge networks through our cooperation with Rotterdam University and the African Study Centre – a subsidiary of the Leiden University.
- European offices in the Netherlands, Germany and Portugal
Why did you start AfricanWise?
We see the potential of the African continent and strongly believe that it will contribute to the positive reset of the capitalistic based world economy. We therefore acknowledge the necessity to develop ‘inclusive’ business models, which means looking at Africa not as a continent with resources or just a consumer market, but as a continent with lots of opportunities and challenges to be dealt with from an African perspective, not a Western perspective. Understanding of (business) culture is key. In our vision Africa especially needs support on developing the ‘making industry’, using their resources, creating sustainable growth, energy facilities and the transfer of knowledge to the continent.
What did you do before starting AfricanWise?
I owned 60 jeans-stores in Europe, was commercial director for the Vlisco Group (based in Ivory Coast), been interim-manager and business consultant. At the moment I am a lecturer at a University on International Business in addition to being managing partner of AfricanWise, ambassador of Africa Business Communities, and in the process of becoming honorary consul for a West-African country.
What can be done by entrepreneurs and government to stimulate the business environment in the SSA?
The sub-Saharan Region has a lot of challenges for the governments to tackle. One principal problem is the taxation laws. There are acceptable policies in place to facilitate fluid business transactions, but the (non)implementation of these policies leaves much to be desired. There is an excessive amount of red tape that gets in the way of business, and the import/export laws are ambiguous and seem subject to frequent change. Political instability could be responsible for this.
There exist trade agreements between Africa and the rest of the world, but in practice, these agreements do nothing to improve international commerce. Also, trade between regions is a problem. It is remarkably easy to move money into the country, but getting it out can prove to be quite the challenge.
The spirit of entrepreneurship is not lacking amongst the African people, but the process of setting up business and getting licenses is quite onerous. The governments could look into this.
Lack of education is also something to address. Governments need to work more with private and public companies to improve the educational system.
What’s the best part about doing business in/with Africa?
There are a lot of things that are stand out about Africa. Personal relationships, for one. When you meet someone, they are less focused on business and more on personal trust. When trust is established, you could have a very long lasting relationship.
The business in Africa is real; the money is real. They do not rely on the resources that the West has at its disposal like credits, invisible monies, etc. It is a purely cash driven economy. Also, the African people are an entrepreneurial people. They have limited resources to work with, but they manage to put it to such good use. Nearly everyone has their little business or little shop set up somewhere. They rely more on themselves than on their governments, and that is an impressive business attitude.
Furthermore, you can achieve a lot and very quickly if you can find the right people to work with. There is so much opportunity in the continent. I also find that the African governments are easier to access than in the West.
Finally, they are a generous people! If you established a connection with them, they would be willing to share their last piece of bread with you.
What can you say about the targets, plans and ambitions of AfricanWise for the rest of 2015?
We aim to continue implementing inclusive business models because this is the way forward for Africa. We are in it not for immediate profit, but for sustainable growth. We are also anticipating launching an investment fund for small investments (under one million USD). We have strategies in place to reduce the investment costs, which can be astronomical if not handled carefully. Our target is to support SMEs not in a financial way, but sustainably.
Do you think women entrepreneurs generally have a harder time accessing loans through traditional bank channels?
I think the African women deserve more than they get. I was commercial director for Vlisco for many years. I saw women work much harder than men in the farms, with their babies strapped to their backs and all. If they are not taken seriously enough in issues of business, it may have something to do with the fact that they have less access to education than men. It is a male dominated region, but women are better driving forces, in my opinion.
Do you believe Social Media and the Internet to be a plus to the business environment, as it applies to your industry?
Yes, but adapted to the African way of using this (mostly mobile).
Which African countries will perform best in 2015?
Ethiopia – improving governance and long term strategic goals
Rwanda – clear, focused president and improving social and environmental circumstances
Mozambique – boost of the economy expected in 1-2 years because of a developing oil industry.
Africa Business Communities is conducting a series of interviews with CEO's and high-end professionals in Africa. Are you interested in an interview? Please send an e-mail to Andrea Ayemoba: andrea@africabusinesscommunities.com