1st May, 2011 
With the current renewed focus on economic growth, it is now common to hear African leaders talk about entrepreneurship. When someone starts selling bananas at a market stand surrounded by other banana sellers, he is hailed as an entrepreneur. But in fact, he is just a businessman. To be an entrepreneur, he has to start something new, or do an old thing in a new way. The element of newness has to be there, something that immediately distinguishes him from other people in the same business, something that makes him stand out and be preferred by some buyers (or all buyers). In short, a true entrepreneur is an innovator. He thinks hard about distinguishing himself to create a special advantage for his business.
But that’s not what is common in Zambia or even the rest of Africa. In Zambia, you often hear “entrepreneurs” say, “mwana, I hear there’s a lot of money in the bus business. I am also going to buy a bus from Japan and get into this business.” There’s nothing wrong with that, it’s a way of surviving. It’s business.
But real entrepreneurs think beyond mere survival. They want to build. They want to dominate. To them, business is an intellectual activity, an intellectual challenge, not merely a means of putting more food on the table. It’s a science.
This is the discipline that Africa almost totally lacks. You need only to look at African television to see how true this is. Almost none of the interesting shows we love to watch on TV originated from Africa. Whether it is Big Brother Africa, African Idol, or Survival, or any other interesting show; they are all imported from outside. And yet there is absolutely no reason that none of these ideas was started in Africa: it costs no money just to think of a concept like “we’ll put some young people in the same house for one month and film them live, then viewers will vote them out one by one” (Big Brother). Do you need a lot of capital to just think of that? Does that need to come from a rich country?
Even the shows that we think were started here were actually not. We have a certain local show that is merely a copyright infringement of “the Apprentice” from America. We have a number of dance competition shows which have infringed on more copyrights than one. And so on. Many of these “local” shows are just a lawsuit in waiting. We do not have the discipline required to think of something different.
Why can’t some people in that industry think of something original that Africans will love and then they could perhaps export it to Americans, Europeans and Asians, just as we import their creations?
The United States is the wealthiest nation in the world because it is the most innovative. Innovators all over the world know that the best place for them to succeed is the US because the culture there is simply the best at innovation (we’ll look into the reasons for that in another article).
Americans have always known that innovation is the most effective way to enter an established industry. Big corporations have frequently been dethroned from their market position by two kids working in a garage who come up with a new idea or intelligently bet on a new trend. IBM was a multibillion dollar corporation when Bill Gates and Paul Allen saw an idea that IBM had overlooked, and soon the great software company was dethroned by a small company started by two young programmers.
Yahoo was already a billion dollar company when two Stanford students thought of a better way of doing search – and they formed Google.
The stories are endless.
And even for these new companies to continue leading, they have to keep innovating, which means the whole management team (not just the founder) have to be innovators in their own departments. Once they slow down, it is only a matter of time before a new entrant creeps up on them and takes them out.
We have big companies in Africa that do very little innovation, but they continue leading because there is no one to challenge them despite their many obvious mistakes. There are no young or older people who even believe they can think of something that will challenge these big companies. In our consciousness, it is not even a possibility to think of taking out a big company.
We complain that this is because banks do not support entrepreneurs. There is probably some truth to that, but it is not the main story. Most times the biggest problem is really just that our “entrepreneurs” do not present any (provable) innovative ideas to the bank or venture capitalist. When an American who comes from that culture of innovation visits the same bank, he gets a loan and we all just assume that our own bankers are being racist against us!
Yes, it’s possible that there are some bankers who are irrationally intimidated by whites, but many times it is just that our local entrepreneurs are not really entrepreneurial. They do not have the character of an entrepreneur. Not only do they not have the integrity that will force them to repay the loan before they begin consuming the profits (they buy the latest Mercedes Benz before they’ve paid back half the loan!), they also do not have the character to think through the idea to the point where it is truly distinguished from other people doing the same thing. They go to the bank and just ask for money to buy some buses. Or to build a lodge. Or to start a farm. When they are asked what will be different about it, why it will make money despite the competition, they basically have no answer. They just believe they will work harder or be luckier or something.
Imagine if Bill Gates had gone to any bank simply with the claim that he would work harder than IBM. Everyone would think he is insane: you need much more than “hard work” to beat IBM. You need a scientific method.
Most of the proposals that are rejected by our local banks would most likely also be rejected by American banks. It is not true that their banks are absolutely more flexible than ours. No. It just so happens that their businessmen are generally much more innovative because they are more committed to the hard discipline of sustained thought — they have a stronger character, they are more innovative.
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I am an american who married a wonderful Zambian woman. We live in the USA but visit every few years. Four years ago, I visited Kabwata craft village in Lusaka and noticed all the hard working wood carvers selling beautiful hippos. Hippos here, hippos there, hippos everywhere. I ask why all the hippos and was told, “they sell”. I think more correctly put, a hippo did sell, so everyone quickly followed.
I spent some time there and gathered together four young men. I told them I wanted to help them start a new business. I said to them, “all over the world especially in America and Europe, travelers like to collect refrigerator magnets as a memento of their trip. I have seen these magnets sold all over the world including kenya. What I want you to do, is make small carvings and put these magnets on the back of them. They will surly sell for between 14,000kw to 24,000kw.” (I paid $5.00 for a plastic one at the airport in Kenya.)
I supplied them with raw materials. 120,000kw spent on wood, magnets, and glue.
I supplied capital 240,000kw to be paid out in the form of salary at 2,000kw each for 30 days.
We talked about reinvesting their sales capital to buy more wood etc.
We wrote down an agreement about who would do what and talked about how we are all in this together.
I told them I would be back at some point in the future and (If) they were able to repay me, I would invest even more money in them.
Fast forward two years later and I looked up my partners. Only two were left. The story was told about how shortly after I left one person stole the money and the other stole the wood. I asked, “what about the idea”? No response. Ok no problem. We will start again. You two are the best carvers you can still do this. This time I brought with me a Wood Burning tool. I told them same idea except you write ZAMBIA or ZAMBIA 2009. Attach the magnets and there you go. I told them to make me 5 samples. I would be back in three days. I would take the samples to the manager at the Zambian airport and see if we can sell them there. Three days later no samples. Excuses, excuses. We were getting ready for a carving fare and we needed to cared more hippos. OK I said I’ll meet you at the fare in two days. Make the samples and I pick them up. Two days later still no samples.
As I left the country I talked to the manager at the airport gift shop and he said, “of course I would sell them”…
This experience haunted me. What could I have done differently. I talked to many people inside of Zambia and asked them what happened? What kept these men from seeing what I saw?
What I have learned is when you live your life day by day the future does not exist. Only today is real. The confidence of a future is a luxury most of us take for granted. Only if you know you will make it through today, and tomorrow, will you be able to see a future.
An entrepreneur is someone who has confidant in their future, and therefore can afford to take risks. No hippos for them! They know if they fail today, tomorrow will be another day.
I think many Captians of Industry in Africa may have much in common with my young men. It takes a long time to shake free the fear, subsistence leaves in your soul, but they are out there.
I read a book recently about a young boy born in Malawi named William Kambwamba. It is called THE BOY WHO HARNESSED THE WIND. It made the New York Times Bestsellers list of all things. It is an inspiring story of one young man surrounded by many who blooms with imagination and a clear sense of the future.
Although we have good reason to be frustrated, we should not become discouraged. All of us will inhabit the same future. It is better we do it together.
Good stuff Chanda. We fail to be inovative because we like to be consumers especially of things from outside. We like prestigeeven when we cant afford to feed the family. Christopher’s experience with the Kabwata guys gives a sad reading but it is real. True, we all like magnets on our fridges and i have different types; but there’s nothing Zambian. The only stuff I am proud of in the house which is Zambian is the Zambian copper clock. Our GRZ has also been a let down when it comes to inovation by Zambians. Remember that one arm guy in Chingola who started to assemble old cars?
I think what Chanda wrote is very sad but true. African will not go far on the path to innovation unless there is a radical change in our way of thinking. And when I say radical, I mean truly from the roots, up.
For example, let’s take the idea of someone coming up with an idea of locking a bunch of Zambian youngsters in a house and filming them for the consumption of Zambian TV viewership. I refuse to believe that not a single Zambian thought of a similar idea. Or anything in the range of ideas we see on TV. I think what prevents any such thing from happening is the knowledge that the idea will probably not sell. That Zambian TV viewers will not buy.
I can refer to an incident that happened back in my village, which I have never forgotten. In those days I used to go to church. We would have a white priest visit our church once every month or so. We had a priest who was a regular. He did all the regular routines. One Sunday we had a different white priest who was temping for the regular priest, for whatever reason. Illness, vacation, whatever. Anyway, this new priest did something not so regular. He brought with him some portraits of Jesus to sell to the locals. People at my church loved to buy religious artifacts. But this time they refused to buy any of the Jesus portraits. Because the Jesus depicted was a Black man. They literally took it as a joke. How can Jesus be black? They could not process such a turn of events.
So that part of the mentality that continues to hold us back. I’m not sure what it is. No self love, no self esteem, I don’t know. There is something many of us have in our minds that suggests exactly what ba Myday alluded to. Consumption of something foreign shows prestige. We think our peers will respect us more if we are seen flaunting some foreign whatever. Be it a T-shirt, TV show, furniture, wrist watch or a picture of Jesus hanging in the living room. This is a huge mental obstacle we have to overcome before we can hope to see innovation on our soil. I think.
I am a Zambian currently living in the US and thank you for giving this forum where we can exchange experiences and ideas. Ok innovation as Mr Chisala has pointed out is in two parts, you either develop somthing totally new or you add on to what already exists.
Several Zambian companies come to mind I will pick a few to give as examples of what might end up still a question.
One: Kapiri Glass…this company has been in Zambia probably before I was born, they used to make a particular kind of glass which many homes called ‘itambula’ a very thick drinking glass with a design I’m not able to describe but some will know what I talking about. Back in the day Zambians proudly bought Zambian and close to every home bought this Zambian glass,what I am trying to driving at is this company had the money to fund innovation if somebody had bothered to say lets keep with the trends in drinking glasses and other glassware. 20 years later the same design no changes in design at all, so if someone goes to SouthAfrica brings a thin tall glass for drinking would you blame the consumer for not supporting our local produce? And the ripple effects are too many to count. The people in the Zambian factory will be unemployed, and frustrated sending more to taverns and to crime, while the local consumers curiosity will increse over what other better product can come from S.A?
Two: Mulungushi textiles, same equipment since KK launched it in 19kaya uko, very few designs which are new, and just accross in the VERY UNSTABLE Congo DR they bring firstly better quality of fabric and new design every three months, why shouldn’t Zambians where the better fabric? That’s what they will go for.
Lack of innovation is the main reason Zambia is a dumping ground, people will buy anything foreign because they believe it is better, this is somehow true although now not everything coming in is of good quality, but where is the Zambian product to counteract this?
That is why unemplyment will be high, because an innovative nation will always have jobs for people.
Interesting that while this writing is true, being here in Zambia I feel there are many aspects to the reason why “” buying a bus will be real “entrepreneurship”". Its what sells that matters.
Factors like Chinese products (even the genuine ones are really cheap), the population distribution (which does not allow for economy of scales – as an example cell phone companies have to invest in the equipment which costs the same whether you are serving 1 million users or 100 users, same for ISPs and many other industries).
Even in developed countries, most things there are “copyright infringement” of what has been done elsewhere or in the past.
If you look at the court fights between a number of companies (Apple vs Samsung for example), it shows that very few organizations are original but they are still entrepreneurs. There are companies that make OEMs and leave it for others to Brand. If you look at the Nissan Ad Van and the Mazda Familia Cargo / Ford and Mazda Pickups. The think the ultimate strategy lies in how a service or product is marketed.
I recently started a website with the hope to share ideas and generate residue income based on what I have seen on the internet. I think it is ok to Copy from others. It should be noted that blogging too was started by one person, different topics make blogs unique but the idea stays the same. In fact I should be honest to state that my initial coming here was to look for places I can place my site URL ( a place with substance)
Ntula, I’m not sure I follow your reasoning. How did you jump from “if you look at the court fights between a number of companies” to “it shows that VERY FEW organizations are original”? Are you saying that MOST (the majority) of companies in developed countries have been convicted of copyright (or patent) infringement (which would justify you saying “it shows that VERY FEW are original”)? Are you also suggesting that the majority of TV shows in developed countries have equally been convicted (or accused) of copyright infringement (or you just know that they don’t have many unique shows), which shows that VERY FEW are original even there but it is only “how a service is marketed” that matters?
I really can’t follow the logical leaps you are making, I’m afraid. (You actually see NO difference between Samsung and Apple products?)
You might also be confusing innovations with “inventions” (judging from your comment about blogging etc.)
Sorry Mr Chanda that my thought line was a bit jumbled. Was trying to summary. I was trying to compare a few issues that originated from developed countries.
My understanding of Innovation is an improvement of what has already been invented which is why when I mentioned the Issue of “substance” in referring to the issue of Blogging. Zamblog is not an Invention but an Innovation because content is different and an improvement of what you find on other Zambian blogs (though not really in Zambia).
Only when I started my own Blog (www.nzanji.co.zm) last month did I realize there are so many sites about Zambia. Having gone through a number of them, I realized most talked about Politics and Gossip. In “trying” to be innovative and bring something neutral and productive in a way I started nzanji. While visiting zambia.co.zm, I came across this blog and having checked, thought its really innovative (which drives me to my next point.)
The idea behind innovation should not be about making money, it should really be about improving people’s lives. Facebook and Microsoft started out with no intents to make big profits (according to what they say), they were just being innovative, but now because people appreciated what they came up with, a profit came along. It would be unwise to think of an innovation and just seat back because you don’t foresee a profit. (running this blog does cost money and time but would you the owner have just sat back because there is no profit). I wish to state that while buying a bus is not innovative, it is entrepreneurship.
On the issue mentioned about vehicles, some people just want to buy the “ford brand” others the Mazda, so in being innovative the manufacturer produces the two brands from the same factory; its the guys who market the two products that actually sell them apart.
The reason things in China are so cheap is because “most” Chinese companies do not invest in research and development – which is the most costly part of a product in terms of innovation. (I don’t know how they go round the issue of patent.)
A number of developed countries have their version of “The Apprentice, Big Brother, Survivor, Amazing race etc”. It would not be right to the producers of those programs are not innovative.
While Apple thinks Samsung is not innovative enough and vise-versa, the whole world knows that the two organizations are actually innovative. Refer to (http://www.bbc.co.uk/news/business-13124753 and http://www.bbc.co.uk/news/business-13167573).
To try and contribute directly to the Topic Question: Can Africans Innovate? My opinion is Yes. With support from colleagues and policies that would favor African Innovations for Africans. Considering the state of development in Africa, one may come up with a perceived innovation and which after searching on the internet they find that that innovation is already in existence. It would therefore help Africa to partner with Developed Countries that have already have tools and models that encourage innovation. In my article http://www.nzanji.co.zm/2011/04/03/doing-business-in-zambia/ I tried to highlight some of business opportunities one may do in Zambia that would require a bit of innovation.
Please don’t judge me
good stuff as usual from this son of the soil. Innovation is the key indeed. in egineering we were taught design concepts and thats key to a succesfull engineer. an engineer is rewarded for thinking differently from the normal, or outside the box. modification is one type of design and as africans we can do more to modify business concepts or ideas that are currently on the market. like rightly put in this great article, microsoft just improved on IBM stuff. google and yahoo….same! even in these companies we lack think tanks. people paid to think. in engineering we call it R&D. these departments are not well funded these days in most companies and businesses. we will do better in our businesses and governments and corporations if we promoted innovation or modificational concepts. ideas to do stuff different, better and ,quicker and efficient like in my field of my career. thats my emphasis. great article chanda. thanx a lot coz this is refreshing.
This is a thought provoking topic but my response to this is that indeed Africans can innovate. It is also true that many Africans cannot innovate due to a number of reasons ranging from not reading the trends to lack of knowledge in business matters. I will not dwell on the semantics on what a businessman or an entrepreneur is, rather I wish to show that Africans can innovate but they need to do better.
The other problem is that most people think innovation in business is only operating a traditional business.
Tradition Business
In this option you choose to start your own business and sell or resell goods or services earning a profit on each item sold. Although many people initially consider this option they soon learn that this method usually requires a major financial investment which many do not have. Additionally there is the need to have a good understanding of cash flow, marketing and management skills and if your business succeeds you won’t have just one boss; every customer becomes your boss.
Although some may find owning a traditional business rewarding, this risky venture usually requires a huge commitment with very long hours where you basically become a slave to your business. This is not to deter people from looking at this option, as with the right approach it can be financially rewarding. Research does however, suggests that the odds are against success, especially if you begin without substantial funding. About 80% of small businesses fail within their first year. A further 15% will fail within 5 years. Out of the 5% left very few will be around for another 5 years.
Investments
Stocks and bonds, real estate, venture capital, and other investments are proven ways to earn residual income – but they require substantial up front capital. For your money to earn money, you must have a great deal of it to start with, which is great if you do, but unfortunately most people don’t have that kind of money.
Direct Marketing
I know many Africans who are innovative by way of Direct Marketing, a method of delivering goods and services to the public which is creating one of the fastest growing industries across the world, offering distributors a residual income in return for a low risk investment. In particular there are about 150 000 people entering the network marketing industry every single week, all hoping to capitalise on this growing trend that is being endorsed by leading financial businessmen worldwide.
The problem is that when people get involved in anything whether business or entrepreneurship this done out of desperation, excitement or hope. It is an emotional decision! There is no abundance mentality at all! So they quit.
Innovative and successful network marketers in Africa have also learnt that network marketing is entrepreneurship or a business model designed to accrue value and net worth over time. Many have diversified into real estates, they run big transport networks but it all happened because they were innovative to change their mind set. Some have employed blogs, social media like Facebook to make money. That is innovation!
A few can still accomplish such a feat, and when it happens it is because they have already learned the ability through past experiences, contacts, skills and know-how. Don’t think it is too late, you can start now and your ‘overnight’ success is the only visible piece standing atop what is usually 3-10 years of failure and money spent that none know about and usually don’t hear about.
Well, in trying to be innovative I have ventured in acquiring knowledge and create a blog http://marvin7019.blogspot.com/ to share my experiences in the vehicle I have chosen to attain financial freedom and do what I love.
Thanks for this blog!