"When Business Means Business" by Chris Gabriel
It was billed as a decisive moment in the global fight against poverty in Africa. Amid unprecedented scrutiny, G8 leaders met at Gleneagles in 2005 to review progress against the Millennium Development Goals (MDGs). Chief among the new commitments made at Gleneagles was a $25 billion pledge to double aid to Africa by 2010.
But while debate rages about whether G8 governments are honouring their commitments, the contribution of Africa’s leading businesses goes largely unnoticed.
While aid and charity undoubtedly have their place, business has an absolutely vital role to play in ensuring Africa is able to fulfil its economic potential - not just in terms of providing investment and employment, but also in terms of acting as a force for change on the continent. Since 2005, Zain, operating as Celtel in Africa, alone has invested $10 billion in Africa (through purchases and spending on infrastructure), significantly more than the G8 economies have delivered since Gleneagles.
The telecoms industry is a key example of how business can facilitate progress. By making available low-cost handsets and increasing network coverage, Zain is very proud of its role as a key catalyst for social progress on the continent. Independent research shows that, in developing countries, increasing access and provision of mobile phones increases GDP per capita growth by 0.6 per cent per annum. More broadly, mobile phones also promote entrepreneurship and economic activity by widening access to markets and compensating for poor or non-existent transport infrastructure. And the contribution the telecoms industry is making in terms of employment is significant. Zain employs more than 10,000 employees across Africa, and 97% of them are African. However, many thousands more people are indirectly employed by Africa’s mobile providers, earning their living reselling prepaid airtime.
The role of business isn’t limited to job and wealth creation; companies can play a significant role in facilitating and driving technological advancement. Zain’s One Network service, which achieved a global first by connecting 28 million customers across 12 African markets, has conclusively demonstrated that Africa can lead the way when it comes to innovation, thereby helping to break down stereotypes of Africa as a place to do business. The world’s first borderless network, One Network is accessible to half of Africa’s 420 million people and allows travellers - and crucially traders - to move across borders without incurring roaming call surcharges.
Business also has an important role to play in terms of delivering CSR and social programmes, partnering with governments and NGOs to drive through social improvement programmes and adding their private sector expertise and resources to help promote sustainable and timely change. On Lake Victoria, Zain is working to reduce the 5,000 deaths caused each year by drowning, increasing mobile coverage to take in 90% of the most populated fishing grounds. And our Build Our Nation programme, which we began in 2005, has seen us partner with governments to help them to meet the MDGs through the provision of education initiatives, programmes and supplies.
Business is undoubtedly the way forwards for Africa, with the mobile telecoms industry providing compelling evidence of the role leading private sector companies can and must continue to play if the MDGs are to be successfully met by 2015.
Chris Gabriel is Chief Executive Officer, Zain in Africa (Celtel)
But while debate rages about whether G8 governments are honouring their commitments, the contribution of Africa’s leading businesses goes largely unnoticed.
While aid and charity undoubtedly have their place, business has an absolutely vital role to play in ensuring Africa is able to fulfil its economic potential - not just in terms of providing investment and employment, but also in terms of acting as a force for change on the continent. Since 2005, Zain, operating as Celtel in Africa, alone has invested $10 billion in Africa (through purchases and spending on infrastructure), significantly more than the G8 economies have delivered since Gleneagles.
The telecoms industry is a key example of how business can facilitate progress. By making available low-cost handsets and increasing network coverage, Zain is very proud of its role as a key catalyst for social progress on the continent. Independent research shows that, in developing countries, increasing access and provision of mobile phones increases GDP per capita growth by 0.6 per cent per annum. More broadly, mobile phones also promote entrepreneurship and economic activity by widening access to markets and compensating for poor or non-existent transport infrastructure. And the contribution the telecoms industry is making in terms of employment is significant. Zain employs more than 10,000 employees across Africa, and 97% of them are African. However, many thousands more people are indirectly employed by Africa’s mobile providers, earning their living reselling prepaid airtime.
The role of business isn’t limited to job and wealth creation; companies can play a significant role in facilitating and driving technological advancement. Zain’s One Network service, which achieved a global first by connecting 28 million customers across 12 African markets, has conclusively demonstrated that Africa can lead the way when it comes to innovation, thereby helping to break down stereotypes of Africa as a place to do business. The world’s first borderless network, One Network is accessible to half of Africa’s 420 million people and allows travellers - and crucially traders - to move across borders without incurring roaming call surcharges.
Business also has an important role to play in terms of delivering CSR and social programmes, partnering with governments and NGOs to drive through social improvement programmes and adding their private sector expertise and resources to help promote sustainable and timely change. On Lake Victoria, Zain is working to reduce the 5,000 deaths caused each year by drowning, increasing mobile coverage to take in 90% of the most populated fishing grounds. And our Build Our Nation programme, which we began in 2005, has seen us partner with governments to help them to meet the MDGs through the provision of education initiatives, programmes and supplies.
Business is undoubtedly the way forwards for Africa, with the mobile telecoms industry providing compelling evidence of the role leading private sector companies can and must continue to play if the MDGs are to be successfully met by 2015.
Chris Gabriel is Chief Executive Officer, Zain in Africa (Celtel)
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