I am leaving Kenya owing money to 10 of the 16 people who have been helping me to build the business here. Although I feel awful and embarrassed I try and tell myself it's okay - I don't really owe them money, the business does. But of course I do, it's me, my passion, I convinced them something great could be possible for all of us and now I am getting on a plane to travel halfway across the world wondering if they trust that I will make good on my word. Our accounts payable department is busy. Thank god thanks to my friend John we have a very large Accounts Receivable payment in Vancouver waiting for me. The actual amount I owe the team is the equivalent of $300 Cdn so if I hadn't been mugged and still had my Vancity ATM cards to hold onto this wouldn't be a problem but money owed be it $300 or $3000 is the same thing - if you are a person of conscience it doesn't feel good. As my father subtlely but consistently reminds me - the two most important words in business are CASH FLOW.
By the end of August I have promised myself that I will stop investing my own money to finance the business because we will have sales orders coming in and our first approach to the Commercial Bank of Africa will be made for a small but rolling line of credit to avoid what is happening today again. So a part of me thinks and is counting on the team to also have faith in this idea of mine - that they too must take a leap of faith and risk somewhat in order to gain. Our profit margin wheel has been carefully designed to include a team bonus fund based on sales so - the more everyone works together to bring down costs & increase sales the more everyone wins. In a sense they basically own part of the profit through the existence of this fund -I mean not legally yet because all that hasn't been done but through a pledge I have made to everyone that all financial records will be transparent and available to be viewed on our website. What I make, what they make, the rent we pay, our energy costs (intentionally our lowest cost due to the high use of human labour) every single penny that flows in and out of the business will be available for the whole world to see. Transparency. Intention. The competitive advantage of trading fairly.
And I can just hear all the CEO's screaming at me now - "Don't do that! That's no one's business" etc etc etc. But I disagree - I think it is absolutely everyone's business who works their butt off to help the business grow and what better incentive really for them to see what the future could be for them and their families? If we are trading fairly - why not? What do I have to lose really? What would I need to hide? Like the collapse of Kenya's beloved Uchumi - most successful businesses aportion obscenely high executive salaries squeezing all the other margins to be cripled in their own effort to make the balance sheet work. But why would do this to something you love, something you have built that serves people and could, if managed properly, make people's lives better?
Our new Systems Administrator Francis is going to install a beautiful and surprisingly affordable HP computer with a Linux Operating System in the studio that has a webcam on top to connect what I am doing and where I am going - with everyone in Nairobi. I certainly don't expect everyone to get on a plane and physically go to Africa to help alleviate poverty like I have - so what better tool than to bring Africa to them? When the camera turns on we will also be able to show our Costings Wheel - a beautifully colourful assessment of what it costs us to be doing business and I know the Kenyans are going to love this! The chance to physically see the results of their efforts, how to improve on this and where we need to go in the future. Learning how to build a business and make money is something to be proud of, something a very young Africa needs more than truckloads of rice or another rock concert.
I saw on CNN this morning that the telco's in the US are launching a policy bill to somehow regulate the internet - didn't catch the details but the handsomely nerdy fellow being interviewed in defense of the Web made a really basic and brilliant point. If there truly was more competition in the US telco sector these companies would self-regulate and not need to control the Web. But this isn't the case in the States like many other places I imagine (North Korea?) where very little competition exists there is economic bullying and so of course, I thought of Africa.
One of the major criticisms of the NGO world here in Africa - is that these groups heavily market to the rest of the world sitting on their couches that 'Africa is dangerous - that is why we are needed so finance our activities.' One of the results is that these media images of dictators, starvation, AIDS and death will keep people and competition off the Dark Continent. The mobile phone companies in Kenya (Celtel who I use and Safaricom) are making an absolute killing here - growth projections up to 500% annually. But despite the fact that the average Kenyan earns 1/10th of a North American they actually pay over 6x the amount per minute in cell charges. I pay 40 KShillings per minute to talk which is roughly 66 cents Cdn - but back home I don't think I have ever paid more than 10 cents a minute. How does this work?
I know the costs are higher here because the whole chat thing is made possible by satellites and this infrastructure investment is higher. That's fair, I can grasp that. But what didn't really seem very appropriate was when I saw during a news interview the CEO of Safaricom announcing their 500% profit gains. Wouldn't it be a little more fair to perhaps lower the rates somewhat? I don't think the average Kenyan realizes how disproportionate their rates are with much richer countries and in a year or so - the whole thing will shift anyway because an undersea fibreoptic cable is being laid now all the way from Durban to the Sudan to finally bring some friendly competition here. In the meantime, the Dutch based Vodaphone who owns controlling interest in Safaricom is absolutely cash rich from doing business in Kenya.
Kenya Airways just announced that they can hire pilots from anywhere in the world now - their expansion plan has somehow managed to change policy to open the market and we the consumers will win along with the company. Emirates Air is expanding here, SAA is abundant and of course BA has always been a player so I suppose the aviation sector could be used as an example of how to design effective growth policies for Kenya to benefit Kenyans as well as investors - pamoja or, together.
Dubai has just positioned itself to become the official home of the AID industry. Let's face it - AID is big big business in Africa in what I feel is a complete hijacking of most African economies. Is it just me or is a bit strange to have logistical procurement for draught originating in one of the world's richest cities? The place apprently has been designed along the lines of a 'business park' with one stop shopping for all your AID needs and if most of this is designed for Africa why is it not being built in Africa? Think of the jobs and profit that could be created here for the benefit or the recipients. If there's one thing the Dubai's are good at it's making money and there would be no way such a massive investment would have been undertaken without an expectancy on a healthy return.
The business of AID - I actually don't have a problem with a lot of it - if people's lives get better how do you possibly argue with that? But the thing about AID that is so strangling in the long term changes that need to take place here is that AID doesn't create wealth and technically or legally it's not allowed to. There's not supposed to be money left over in the bank at the end of the day really over at Unicef and this is the thing that Africa needs most - wealth to build investment growth to build more wealth. But is the rest of the world truly willing to create the environment for this to happen - or is it more motivated to keep Africa hungry? It's the primary issue we face as we build a textiles business here - it's very nice of the rich countries to donate their clothes to poor Africans - absolutely and most people are kind and want to help. But if it oppresses the local textile producers from growing here in Kenya than it's not so good after all. There is something better coming next.
I believe it's time for AID to stop in Africa. Things couldn't really get much worse and besides, the West needs it's own money for it's own citizens. What would happen if the whole thing got reversed and we said okay - it's time for the competitive private sector to parachute in and make a buck off feeding, sheltering and entertaining all of our African friends? That's the way it happens everywhere else in the world and Africans know how to make money - after all East Africa is the birthplace of trade and nobody hustles like an African. My friend James writes in his book "Reclaiming Africa" that Africans have a very skewed view of themselves and their abilities thanks to all this AID and 'helping' from the rest of us. That they are psychically wounded after all these years of being told the way they do things is wrong and we need to supervise, consult and donate so it all works in the way we think is right.
Personally I witness this everyday in the studio when I ask everyone who works with us how much money they want to be paid - I'm certainly not going to determine this for them. You'd think I'd have asked them how often they masturbated themselves or something similarly dark and private you would not want the world to know - they get all shy and lower their head and tell me it's up to me how much money they are going to make. It's like pulling teeth. I'm not saying I would pay anything - the business does have a budget (albeit handwritten and in coloured felt pen) but I give everyone the option of deciding how much they want to make for what kind of work they want to do and we mutually agree how many hours I can afford for this exchange.
My friend Carol taught me this in the TV business and I have also learned this with taxi drivers here too. I wait until the end of the trip and ask them how much they want for the journey - whatever they say I pay and it's always without fail lower than if I told them what I was willing to pay before I got into their car. And it feels more respectful. I am guest here. Sometimes it's higher, sometimes it's lower but in the end it works out really. I know I get out of the cab and the guy is left scratching his head like what just happened there?
I can feel that my short time here has taught me how to live and do business with Africa. Some of my European or North American friends here may think that I have 'gone Native' which certainly isn't the case - I am still wearing my gold hoop earings and using my Mac toner on a daily basis - but I have created some small start to a life here in Kenya that is African and it feels really really good. When I greet people I extend my hand for that 'clutch', not a 'shake', but more of a peaceful momentary holding of one another that is the only way I know how to express myself here that truly says, Na Heshima, or respectfully and it has made all the difference in the world. The secret African handshake that if you are truly paying attention to you can learn and it will change you.
When I get on the plane at 3:30 heading to Atlanta to see friends I will Lala Salama or sleep peacefully knowing my investment is in good hands. Sure there's going to be mistakes and mishaps but that's my responsibility like being a good parent. As a business person you have to create an environment where people can thrive and use the tools to do so. It's not what you do personally, it's what you cause others to do that counts.
If I had $100 for every time someone has said to me, "Safe Journey" we would have the rent paid for a full year in the studio. I am off to market that to the world.
Safari Jema, Sue