The problem with equality is that it is an extremely
relative matter. Even two businesses trading in the same sector in the same
town with the same turnovers and profit margins, will perceive themselves as
not being equal. If we then throw the pool of SMEs into the African bucket, how
do we then measure equality?
A key area for me is legislation. Legislation can be a good
thing, as good business is often founded on a controlled environment.
Legislation can create the controlled environment conducive to business and
economic development. However, too much legislation is not a good thing, as it
leads to unnecessary red tape, which in turn leads to bureaucracy and a decline
in economic development. Too often in Africa the playing fields are not level,
simply because governments tend to err on the side of too much red tape ie.
legislation and regulation.
So where is the balance to be found? It is a matter of great concern, but until
such time as governments see the need or de-regulation it is unlikely that
businesses will benefit from less red tape.
Markets generate the opportunities that so many
entrepreneurs are seeking. Yet, governments who have all the import statistics,
and which would be useful as part of an import replacement programme, make
little to no effort to provide these statistics in the form of useful
information to the business community. Why not? Do they have something to hide?
A small town in the USA hosts a large motorcycle rally that hosts 400,000 Harley
Davidsons over a period of 10 days. At the end of the 10 days they can tell you
exactly how many cokes, coffees, underpants, hamburgers, you name it, were sold
over the period. They then use that as a yardstick to plan for the next year’s
rally, and to charge external vendors for retail space. Everyone is informed
and therefore successful, as their decisions are based on useful information.
Finally, while I am totally abhorrent of xenophobic
behaviour, whether the African governments are prepared to acknowledge it or
not, the fact is that the Chinese are just another bunch of colonialists,
simply dressed in another guise. Key to Chinese success in Africa is the fact
that they do not interfere in other countries’ politics. You are welcome to do
what you like in your country, and as long as you also bow to the pressure from
China on issues such as the Dalai Lama, all is well. In a continent where
democracy is slowly arriving, there are still too many thugs and criminals,
commonly known as politicians and political leaders, which makes the Chinese
welcome business-bedfellows. They also share a passion for corruption and
bribery.
However, what is not being noticed is the impact of the Chinese on
local markets.
I am aware of landlords who receive their rent cheques for business
tenants from the Chinese embassy. I am aware of Chinese traders who simply
order more stock. Their stock is funded by the Chinese government. Cash flow is
never a problem. Growth is easily funded. In fact I wish I was Chinese in this
respect.
African governments claim they want to develop SMEs, but
make it impossible for their people to compete against the Chinese traders. The
reality is most businesses start small in services and retail, but how can SMEs
compete against the Chinese government – they cannot. And the problem is pervasive from South
Africa, to Botswana, to Namibia to Zambia, to Tanzania. In fact the stories
never end. In some of the most parts of Africa, the trader is a Chinese fellow.
Therefore in conclusion I believe that the biggest reason
for inequality in Africa between SMEs, is our governments who lack insight into
SME development, have no visions for what their economies could be, and are too
busy cozying up to the new colonials instead of protecting their own markets and
entrepreneurs.