In Pursuit of the African $$$ - Why the Barclay's/UBS/Citigroup Growth Strategy is Alarming

Aliko Dangote - Africa's Richest Man

Bloomberg posted an article today about big acquisitions of African wealth accounts as a primary growth strategy for some of the largest banks in the world, namely Barclay's, UBS, and Citigroup. As Europe and the US continue to struggle with the ever-lasting recession, Africa's growth and wealth prospects are high. "The number of Africans with at least $1 million of investable assets climbed 9.9 percent to 140,000 in 2012, according to a report published on June 18 by Cap Gemini SA (CAP) and Royal Bank of Canada. That was the fastest rate of increase outside North America."

Nigeria, Ghana, Kenya, and Mauritius are leading the pack. Wealth disparities aside, I am all for Africans building wealth both individually and that which trickles down into communities however the involvement of large European banks stinks of the 1600's. Barclay's as some of you know was handed one of the biggest reparations fines in history and was one of the first banks to explore opportunities on the continent at the beginning of the recent boom. They have largely been successful in acquisitions of business because they know the terrain. Let's not forget that pre-colonial Africa was doing quite well with the Ashanti tribe and others holding what today would be millions of dollars in gold and other assets. Barclays, as has been revealed time and time again was one of the most active banks involved in the slave trade and has had some presence for quite some time.

The vestiges of that history was evidenced by then State Assemblyman Hakeem Jeffries in his opposition to the naming of the Jay-Z endorsed Barclay's Center in historically black Brooklyn.  I don't claim to be a conspiracy theorist or a financial scholar but I do know that fire need only to burn me once. As Africa's wealthiest build their legacy's, I hope their eyes are open to who they are leaving it in the hands of.

Even if John Kerry doesn’t change the convo on business with Africa – You Should

Leslie Pitterson's piece in Ebony Mag about John Kerry's likely ascension to Secretary of State is a timely piece that hits home for me. I would argue that when 80% of my friends talk to me about Africa, they ask “humanitarian” questions. Which orphanage can I give to? How are people getting water? Is the poverty as bad as they show on TV? And the list goes on. While intentions are good, a conversation around how we can “help” Africans is failed from the start.

We should talk about the opportunities in Africa, opportunities that are actually harder to come by for black diasporans here in the US than on the Motherland. How many people do you know personally running US enterprises in big-time businesses like agriculture, banking, or telecommunications? If you are like me that answer is ZERO.

Beyond just not having the level of wealth needed to invest, these sectors are fully developed in the US with little room to break into the holds of the large conglomerates. With African countries holding 7 of the top 10 slots for GDP growth globally and weathering the economic crisis better than the US and Europe even a beginning business student would argue that the bigger payoffs for a startup lie across the Atlantic.

How do we get there? Jumping up and starting a business in Africa seems like a tall order – and in some ways it actually is but there is hope for us yet. Check out this article about Black American immigrants to Ghana who took advantage of the country’s open door policy and filled gaps in Ghana’s services sector. The message I got from this and from others who’ve done it is “simplify”. Laser-focus on the skills you bring and then understand the market needs.

Not yet ready to get your Marcus Garvey on? Check out the National Black Chamber of Commerce or the National Minority Business Council. Both organizations send trade delegations to African countries as well as to nations with high black populations in the Caribbean and South America. Accompanying a delegation or attending one of their workshops or events is a great way to network, compare business ideas, or crystallize an idea you already have.

If you have some time – check out what these black entrepreneurs had to say about expanding their businesses to Africa.

Ciao! 

Sasyrae