For the last three decades, Somalia has been one of the most unstable countries in the horn of Africa region. More than 1.5 million Somali citizens have been displaced and ended up in faraway lands since 1991, when a civil war broke out following a coup that ended two decades of Mohamed Siad Barre’s regime.

Most of the Somalis who call Minnesota home were among the first refugees to flee the east African country. Given that history of instability, it might seem strange to some that anyone would celebrate the independence of a country they had to flee.

But that’s exactly what members of the Somali American community during the weekend of July 1 to mark 63 years of the founding of the Republic of Somalia.

“I think it’s important that we have this [celebration] because, even though we are now in Minnesota, we need to remember our history,” said community member Khadar Bille.

Bille was one of thousands of Somali Americans who came to Lake Street in Minneapolis to celebrate Somalia’s Independence Day. Waving a sea of sky-blue flags, people surrounded the stage on Lake Street, where a lineup of musical artists was scheduled to perform. Further from the stage were Somali business vendors, their tents sheltering them from the oppressive heat. Children’s laughter could be heard over the traditional Somali music playing on the speakers. Attendees enjoyed a range of activities including a petting zoo, face painting, and treats.

The celebration on Lake Street was part of a weeklong series of events for Minnesota Somalis to celebrate their home country’s independence under the banner of “Somali Week”. Events included panel discussions, and cultural and sports events, hosted by Ka Joog, a Minnesota-based nonprofit that organizes annual celebrations of the east African country’s Independence Day.

Many of the Somalis who fled the civil war ended up in Minnesota because of the state’s progressive politics and its robust refugee resettlement agencies. Today, Minnesota is home to more than 86,000 people of Somali descent, more than any other state in the nation, according to Minnesota Compass. As their population grows, they encounter challenges that come with being Black and Muslim. Festivals like the Independence Day celebration become important tool for combating stereotypes because they give Somalis opportunities to introduce positive aspects of their rich culture to Minnesotans of different backgrounds.

“[The festival] is good representation,” said Abdi Osman, a member of the Somali community. “I’m glad we get to enjoy it and showcase our beautiful culture.”

The origins of the modern Somali state date back to 1884, when European nations began the “Scramble for Africa,” a colloquialism for the imperial conquest of western powers over territories on the continent. Following the conference, Britain took over a large part of Somalia and established British Somaliland. By 1936, Italy had taken over the northeastern sultanates of the country and formed Italian Somaliland, according to Encyclopedia Britannica.

The colonial powers fought for many years over the ownership of their respective territories, with British forces defeating the Italians to add Italian Somaliland to its protectorates after the Second World War. On June 26, 1960, British Somaliland gained independence and became the State of Somaliland. Five days later, it merged with the Italian Somaliland to become the Republic of Somalia. Today, June 26 of every year is celebrated as Somalia Independence Day while July 1 is Republic Day. Every year, citizens of the country living in Minnesota spend celebrate the two important days in a series of events known as Somali Week.

Siham Mahamood, founder of real estate agency Amaana Realty, expressed enthusiasm about being able to have a table at the Somali Week festival for the first time ever. She said she decided to pursue a career in real estate after an unpleasant experience she had when purchasing a home in 2019. Her relator was full of prejudices that came from lack of understanding of Somali culture. The experience made her feel compelled to serve her community through real estate by providing a culturally inclusive experience.

“Being able to help my own people is inspiring,” Mahamood said. “I want my people to have a better experience than I did.”

Anwar Juba, a Graphic designer, and his son Abdi Shaur had a table for Juba Graphics, the father’s graphic design firm. Juba has been vending at the festival for many years, where he sells Somalia themed shirts, flags, and banners.

“It’s just fun seeing everyone enjoying themselves while supporting Somali-owned businesses,” Juba said.

Mohamed Ali chatted with a vendor as he indulged in doolsho, a type of Somali sponge cake. Besides his dessert, Ali said his favorite part of the festival was seeing individuals of different ethnicities come together and support Somalis in celebrating their culture and independence.

“I’m just here vibing [sic] with the community,” Ali said. “It’s refreshing to see this kind of unity.”

A week-long soccer tournament to celebrate Somalia’s Independence Day ended on July 3 with Saint Cloud-based GarGaar FC taking home the coveted trophy after defeating KB Stars FC of Minneapolis 4-3 in a tense penalty shootout.

The championship final match, which was held at the James S. Griffin Stadium at Central High School in St. Paul, was the climax of a competitive soccer tournament pitting various teams from Somali communities in North America.

It was clear from the beginning that KB Stars had home field advantage as their supporters didn’t have to travel far from Minneapolis. But it was GarGaar who would strike first when Mohamed Abdi scored in the 58^th minute. With their fans urging them on, KB Stars continued to attack in search of an equalizer, which finally came late by way of a Najib Omar goal in the 87^th minute. Omar’s goal sent the stadium into a frenzy with the Minneapolis team’s fans rose from their seats chanting “KB, KB, KB!!”as they waved the Somali flag.

With two of the 90 minutes of regulation remaining, GarGaar substituted their goalkeeper, Mohamed Aden, for Siyad Shale, who is known for making quick saves. When the match ended in 1-1 tie, it went to a penalty shootout to decide who won the trophy. The tension was palpable as fans who had be rowdy for 90 minutes suddenly became silent. When the shootout commenced, GarGaar took the first penalty kick and converted. A KB Stars player followed but missed the goal completely. Although GarGaar did miss a penalty of their own, they converted three more. The last kick went to KB Stars for a chance to tie the shootout and keep chances of a trophy alive, but Shale, the substitute goalkeeper, made an excellent save to guarantee GarGaar win for the second consecutive year.

The soccer tournament was one of many events planned during Somali Week, an annual celebration that takes place around July 1, the east African nation’s Independence Day. This year marked the 63^rd anniversary of independence, a day known officially as Somalia National Day. Minneapolis kickstarted Somali Week with an Independence Day festival on July 1, and concluded with the end of a week-long Somali Week soccer tournament that began on June 24. Daoud Mohamed, one of the organizers of Somali Week, said education was this year’s theme.

“It’s about bringing people together to educate each other about our differences, but [also] to celebrate our similarities, as one community,” Mohamed said. “But most importantly, we wanted to create a platform, an opportunity for young people to connect on a positive level.”

With an estimated population of 17 million, Somalia is home to various ethnic groups, languages, and cultures. The Republic of Somalia, as the country is known formally, was formed in 1960 following vicious colonial efforts by Italy and Britain. In 1969, Mohamed Siad Barre came into power and ruled the country until January 1991, when he was overthrown in a coup. Barre’s ouster led to a series of civil wars that have since displaced more than 1.5 million Somalis worldwide.

Thousands of displaced Somalis have sought refuge in Minnesota, where they began arriving in 1993. The population of people of Somali heritage in the state is estimated at 86,000, according to Minnesota Compass, a nonprofit group that analyzes U.S. Census Bureau data. Minnesota’s Somali population is the largest in the United States, making it a sort of unofficial capital of the diaspora, with neighborhoods like Minneapolis’s Cedar Riverside nicknamed “Little Mogadishu,” a nod to Somalia’s capital city.

According to Mohamed, the Somali Week organizer, the tournament comprised of 16 teams, including two from Minnesota, 12 from other states like Maine and Washington, and one each from Canada and the United Kingdom.

Soccer is an integral part of Somali culture. Like in most of the world, soccer in East Africa has been a sport that brings people together, which is why preparations for the tournament are meticulous.

Hussein Mohamed, one of the coaches of KB Stars and an organizer of the tournament, said anticipation for the annual competition begins as soon as a new champion is crowned.

“Tomorrow, [July 4], we start preparing for next year,” he said. “The process of getting ready excites me. We love the game, because we were raised by playing dads. Family members – our oldest brothers, everybody just grew up playing it. [At this tournament] we celebrate good soccer and the independence of our country.”

The match was attended by community elders and important figures, including Somalia’s most celebrated athlete, Abdi Bile, a middle-distance runner who represented his country in Olympics and was once a World Champion. Political leaders like Rep. Samakab Hussein, a Somali American who represents District 65A in the Minnesota assembly, were also present.

Hussein commended the community for raising funds from individual and private donors to pay for the cost of carrying out the Independence Day events.

“This wasn’t city money,” Hussein said. “It wasn’t county money. It was the donors, [and] individuals that came together and made this happen.”

Donnie Brooks, a Twin Cities community member, who is also the director of athletics at Macalester College, said the event was important because it gave Minnesotans insight into Somali community and its culture.

“They are not only unbelievable group of people who are organizing the event, but it’s just a really beautiful thing to see the culture and excitement” Brooks said.

After the match, officials and leaders congratulated both teams for their efforts and good sportsmanship. They presented KB Stars players with medals and a second-place trophy. The tournament officially ended when Hussein, the lawmaker, presented GarGaar with their championship trophy.

For Somali Americans in Minnesota, the week leading up to the July 4 is not only an opportunity to celebrate the Independence Day of their surrogate nation, but also that of the country they left behind.

This year, the Somali community celebrates 63 years of their country’s independence. Throughout the weekend, Somalis in Minnesota celebrated their country’s independence with a series of events under the banner of “Somali Week” which included panel discussions, and cultural and sports events, hosted by Ka Joog, a Minnesota-based nonprofit that organizes annual celebrations of the east African country’s Independence Day.

On Friday, business leaders, elected officials, and members of the community gathered at the Courtyard by Marriot Hotel in downtown Minneapolis for a town hall discussion themed “Progress and Partnership: Envisioning a Stronger Future for Somalia.”

Community leader Sheikh Hassan Jama said that the town hall was a call for unity for all Minnesotan Somalis to think about how they could advance the interests and wellbeing of the Somali diaspora. He explained why thousands of Somalis take part in the annual week-long festivities.

“[Somali Independence Day] is a day that calls for reflection and gratitude,” Jama said. “Our forefathers’ unwavering commitment inspired us to honor their legacy and uphold the values they showed in their struggle.”

Events like Somali Week present opportunities for the community to cast itself in positive light, in a state where people of Somali descent haven’t always been portrayed well.

Despite having a population of more than 86,000 – the most of any state in the United States, according to the nonprofit group Minnesota Compass’s analysis of U.S. Census Bureau data, Somalis in Minnesota have historically met challenges that come with being Black, immigrant, and Muslim.

According to the Somali Week website, the celebration has grown over the years from one block with around 5,000 people, to three blocks and more than 35,000 participants from various backgrounds. Ali Elmi, the board chair of Rising Impact, a nationally recognized Somali-wellbeing organization that coordinates Somali Week, said that leading the planning of the festivities had been rewarding for him.

“These past two weeks I’ve really come to understand all that goes into organizing this great event,” Elmi said.

At the town hall, Kyle DeFreitas, a representative from the World Health Organization (WHO), spoke about the recent COVID-19-imposed challenges that put pressure on Somalia’s health sector. The pandemic exacerbated pre-existing issues in the country, he said.

“The country continues to feel the impact of COVID, on top of other challenges like famine, floods, drought, and cyclones,” DeFreitas said.

Despite the difficulties, DeFreitas acknowledged that Somalia had made significant strides in getting back on track after the pandemic. They included technological advancements to increase access to oxygen and successful vaccination campaigns. A report from WHO detailed the international efforts to improve post-COVID conditions in Somalia, including partnerships with the United Nations Sustainable Development Cooperation Framework to rebuild the health care system and strengthen emergency preparedness.

Rep. Samakab Hussein, a Somali American who represents District 65A in the Minnesota state legislature, recalled fond childhood memories of Somali Independence Day in Minnesota. Each year, he would anticipate the lively cultural activities and parades in his neighborhood, he said. Hussein said the experience shaped his identity as a young Somali American, and believes the celebrations are important in instilling pride for future generations.

“We want to make sure our kids learn where they come from and who they are,” Hussein said.

Another member of the community, Dr. Mursal Khalif, spoke about the business potential of Somalia, highlighting the country’s natural resources as opportunities for trade and economic development. Khalif also mentioned the strides Somalia has made in the tech industry, particularly its ICT sector, according to World Economic Forum.

As more Somalis immigrate to states like Minnesota, the need for robust communications technology available to the diaspora has only increased. However, political instability has stifled progress. Khalif said the solution to the Somali economic standstill was more emphasis on diplomatic relations.

“When people do business together, relationships grow, and we can all benefit from that partnership,” Khalif said.

Mohamed Farah, executive director of Ka Joog, said town halls were necessary to both unite the community and pave a brighter future for Somalia. While a large portion of the discussion addressed Somalia and the ways people can support the country, Farah said it was just as important to discuss the livelihoods of Somalis living in Minnesota, as more continue to settle in the state every year.

“Minnesota is our home, and we aren’t going anywhere,” Farah said.

MINNEAPOLIS – Tanzania is in need of more skilled IT personnel and investors to fully exploit the recent landing of the submarine cable in the country, the second annual Diaspora Council for Tanzanians in America convention (DICOTA) in Minneapolis was told during the second day of deliberations on how to harness the resources of the Diaspora for the development of the country.

During a freewheeling discussion on ICT (Information and Communications Technologies), delegates expressed concern over whether Tanzania was maximizing the new fiber optic cable that the country has now acquired and whether all parts of the country were benefitting.

Mr. Philemon L. Luhanjo, Chief Secretary and Secretary to the Tanzania cabinet assured delegates that 16 of the 21 regions in the country have already had access to the fiber optic backbone “and the government has spent $170 million to bring this thing (fiber)” and that the government will eventually roll it out to all the regions soon. The challenge, he said, was that businesses and potential investors have yet to tap into the new opportunities that the fiber optic cable has presented acknowledging the underutilization of the new bandwidth the country enjoys.

“Infrastructure without  the human capital will be a waste”, said Dr. Negus Adefris, an IT consultant who suggested that one way for the country to overcome and address the IT personnel shortage that the landing of the fiber has revealed is to tap into the many Tanzanian IT professionals that now reside abroad. Dr. Adefris who runs a consulting practice said his company has engaged many such Tanzanian IT professionals “some who own their own companies” he said.

A local physician, Dr. Crispin Semakula, said Tanzania needs to urgently prepare for “systemic use of ICT” as it lays the groundwork on spreading the use of such. He gave examples of how he uses ICT in his Minneapolis practice saying telemedicine could help overcome the lack of physicians in rural Tanzania.

Panelists that included a Sprint IT expert of Tanzanian origin offered a menu of options that Tanzania could choose from as it prepares to use ICT to address the myriad societal and economic challenges the country faces.

Mr. Norbert Safari Leone who owns a construction company in Dar es Salaam and is a delegate to the convention intimated to Mshale that he is an early adopter of ICT in running his business. On why businesses in Tanzania might not be taking advantage of the new fiber optic and the resulting high bandwidth it offers, he said “to be honest the charges (for ICT services) are so high right now that I cannot blame any business for not using it.”

His company, Nordic Construction, has to use technology to remain competitive. His hope, he said, is that charges will be more reasonable in the near future to ensure wide adoption by Tanzanian businesses.

Eric Shigongo, CEO of Global Publisher, perhaps put it in context for potential Diaspora investors when in an unscheduled short motivational talk of his rags to riches story following a lively ICT session he said “don’t let money stop you, what matters is the idea.”
 

MINNEAPOLIS – The National Social Security Fund of Tanzania (NSSF) today unveiled an ambitious welfare scheme for Tanzanians in the Diaspora estimated at 170,000.

The groundbreaking scheme was announced by the NSSF Director of Operations, Mr. Crecentius .J. Magori, when he addressed delegates to the second annual Diaspora Council for Tanzanians in America convention (DICOTA) that is going on this weekend in Minneapolis.

In a well received speech, Mr. Magori qualified his remarks by stating that final details were still pending and were subject to the consultations he will be holding with Diaspora members while in Minneapolis.
Dubbed WESTADI (Welfare Scheme for Tanzanians in Diaspora), the scheme is targeted to cover at least 5% of the Diaspora.

The scheme which is modeled in the form of an insurance policy will provide for outpatient and in-patient medical services to members and their families back in Tanzania. A low annual premium of $200 will provide coverage for the insured and up to four dependents while in Tanzania and include those left behind in Tanzania.

“Medical services will be provided by accredited and reputable medical providers”, said Mr. Magori.

A section of his presentation that drew the most applause was when he announced that part of the proposed scheme will cover the transportation of the human remains of a member back to Tanzania and that the benefit package will also provide for an air ticket for one individual to accompany the remains.
“The days of calling a mchango (fundraiser) to send a body home will be history”, he declared to cheers from the audience.

Other benefits to accrue from the scheme will include the provision of an airline ticket to a sick member to go back to Tanzania. A ticket will also be provided to a person accompanying the sick member.

On how premiums for the new scheme will be collected, Mr. Magori said the NSSF is in negotiations with Stanbic Bank, part of the Standard Chartered Bank system for the management and collection of premiums. The idea of using a multinational bank seemed to trouble some in the audience who felt there could be other more convenient and cost-effective ways “such as PayPal” one delegate offered.

Whichever way the premiums were remitted did not appear to trouble North Carolina physician Dr. Kurwa Nyigu as long as they were efficient. “These are things to be explored whether it’s PayPal or standard Banks,” Nyigu said.

Nyigu who was also a delegate to the inaugural DICOTA Houston convention last year was impressed by NSSF’s presentation at that convention which led her to visit NSSF’s office in Tanzania while on vacation last year. Nyigu was impressed with the tremendous changes the NSSF has made in this year’s convention and how much NSSF officials have listened to her suggestions as a member of the Tanzanian Diaspora.

“The first convention was more ideas without a clear plan,” Nyigu said. “This year’s convention is more detailed and engaging.”

Editor’s note: Follow convention updates at our Twitter page.

MINNEAPOLIS – Tanzania continues to be among the top recipients of the Millennium Challenge Account (MCA), the bilateral development fund that is run by the Millennium Challenge Corporation (MCC), the U.S. agency created under the Bush administration “to reduce poverty through sustainable economic growth”.

The announcement was made by Jonathan Bloom, MCC’s Deputy Vice President during a featured speech at the second annual Diaspora Council for Tanzanians in America convention that got underway this morning.

Compacts, as the large five-year grants that MCC provides to eligible countries, have been instrumental in important projects that have gotten underway in Tanzania. The current five year compact that Tanzania is taking advantage of consists of US$470 million out of the US$7.2 billion that MCC has provided to the 19 countries it is working with currently, easily making the country an important player.

With stringent government, good policies, country ownership, and result, MCC provides effective and deserved foreign assistance to selective countries. “What we support is to provide the basis of these types of opportunities,” Bloom said. He said the projects MCC has funded have acted as catalysts to a variety of other projects that Tanzanians have initiated.

Over 300 delegates are gathered in Minneapolis for the convention. Participants like Magabe Maasa came with obscure hope and questions ruminating in his mind. “These are all smart officials,” Maasa said. “I don’t know why Tanzania is poor.”

One of the first speakers this morning was Mr. Philemon L. Luhanjo, Chief Secretary and Secretary to the Tanzania cabinet. He delivered a speech on behalf of President Jakaya Kikwete who praised the objectives of DICOTA.

Luhanjo said, “His Excellency said, ‘My promise to you DICOTA, my government and I will give you all the necessary cooperation and support.’”

Editor’s note: Follow conference updates on Twitter.

WASHINGTON – Secretary of State, Hillary Clinton, listed conditions that she said will propel Africa to prosperity – chief among them being responsible leadership.

In an address to the 7th biennial US-Africa business summit, Clinton  outlined strategies to help spur economic development in Sub-Saharan Africa and create conditions that will improve the lives of the African people, saying that “we have to acknowledge that none of this can happen without responsible African leadership, without good government, transparency and accountability, without acceptable rule of law, without environmental stewardship and the effective management of resources, without respect for human rights, without an end to corruption as a cancer that eats away at the entrepreneurial spirits and hopes of millions of people.”

According to the Secretary of State, “We are eager to move beyond stereotypes that paint Africa as a land of poverty, disease, conflict, and not much else.  And we will continue to lay a strong foundation for a new kind of engagement with Africa, one that is built on shared responsibility and shared opportunity, and on partnerships that produce measurable, lasting results.”

“I don’t need to tell this group that although there are so many opportunities for investment, none will succeed unless conditions are favorable for business and investment,” she added.

Clinton told the summit that Companies are not going to be attracted to states with failed or weak leadership, crime or civil unrest, or corruption that taints and distorts every transaction and decision, or to countries that violate the rights of their people and, worse, allow violence toward women and girls to be practiced with impunity.

She listed five key areas the US wants to partner to create prosperity to include trade, development, energy security, public private partnerships and “fifth, and perhaps most important, we are stressing good governance, transparency and accountability, ending corruption, and adherence to the rule of law.”

She offered South Africa as a compelling example of the relationship between good governance and economic development, stressing that South Africa emerged from apartheid and engaged its citizenry in the democratic process and is now Africa’s economic engine.  She cited Rwanda as another good example in the continent.

Secretary Clinton however acknowledged the challenges that lie ahead even as Africa puts its house in order but should not be used as an excuse, “now, we know that there are a lot of obstacles to overcome, but we are determined to work with you to achieve the goals that we have set forth.  I was delighted that President Kagame was here, because even with the global recession, Rwanda’s health indicators are improving, its economy continues to expand, and that is directly traceable to the sound policies that the government has implemented.”

She also pointed out that the Government of Botswana in its early years of independence was visionary as regards its mineral wealth.  The leadership there was so devoted to building a country that would have the advantages that they wanted to see for their people after colonialism had finally ended.  So they struck a hard bargain, and they created, essentially, a trust fund where a percentage of the revenues from the diamonds went into that fund, and then that fund was used to pave the roads.  “And if you have traveled in Botswana, you know that the roads are the best in Sub-Saharan Africa except for South Africa.  And we can see the results year after year after year,” she said.

Organized by the influential Corporate Council on Africa (CCA), more than 1,500 business leaders from the private and public sectors in the U.S. and Africa  attended, making this year’s summit one of the largest. 
Pre-summit events included honoring of Mr Jakaya Kikwete, President of Tanzania generally seen to have led the effort to improve key sectors of the country’s infrastructure such as electricity, transportation, and education in a forum which was for business associations round the globe.

Also at the summit were country specific forums such as “Doing Business in Ethiopia”, designed to highlight success stories from businesses that have already entered the Ethiopian market, network with other businesses interested in Ethiopia, meet face to face with Ethiopian and American policymakers and business men and women, and build potential partnerships for the future.

Similar forums were held for Angola and Namibia which allowed participants to network with both private sector and government officials from the respective countries. Several bilateral workshops were also held and they spanned agriculture, tourism, power, infrastructure and financing.

There was an array of corporate sponsors for the summit overall and for the various workshops and plenary sessions. They ranged from media giants to oil firms and nutrition solutions firms such as Novus International which touts itself as a global leader in creating science-based nutrition and health solutions. The company, a gold level sponsor of the agribusiness workshop told members of the press during a briefing session that the company’s products are in over 90 countries around the world and that it is ‘committed to helping feed the world with wholesome food and achieving a higher quality of life.’

Dr Christopher Knight of Novus said at the media session that Novus “believes in empowering producers with tools and knowledge that will help make a positive impact in their local communities and the world.”

Novus unveiled a fellowship program targeting African scientists that will entail the scientists coming to Novus’ research facility in Missouri. The program is collaboration between USAID and the Gates foundation which Novus’ Joyce Cacho emphasized is a long-term commitment by her company and will not be dependent on the funding from the Gates foundation and USAID, “as we now want to turn our attention to Africa”, she told members of the press. A scientist from Mozambique will be among the first recipients with the overall aim of the fellowship being the transfer of some applicable knowledge to Mozambique.

Stephen Hayes, president and CEO of CCA in welcoming participants said that the 2009 summit took a new approach by spotlighting a limited a number of key sectors where opportunities are most promising.

WASHINGTON
– The traditional model of banking has failed, the CEO of East and Central
Africa’s largest bank in terms of deposits, Mr. James Mwangi, said today when
addressing a workshop on the future of Banking in Africa. The Equity Bank boss said
this failure is particularly evident in Africa, which has given his 25 year old
bank an advantage in tapping into the continent’s unbanked.

The
workshop was part of the 7th biennial US-Africa Business summit held in
Washington this week.

Mr.
Mwangi told summit attendees that the future of
banking in his view lies in the convergence between banking and
telecoms.”Equity bank has 56% of all bank deposits in Kenya and through
its responsiveness to its customers has facilitated a high rate of savings by
its customers to the tune of US$900 million”, he said. Its success is also
due in part to its pioneering role in the micro financing movement in Africa
which has won it accolades globally.

Mr.
Mwangi was the only African bank executive officially on the summit program to
participate in the critical workshops taking place during the week long event.

The
Equity bank boss attributed his bank’s success to the leveraging of economies
of scale and said the sector has been successful in lobbying Kenya’s baking
regulators to allow for what he called an “agency model”. He
described the model as one which will allow virtually any storefront with a
cash register or credit card terminal to act as an agent for a bank by
performing some of the traditional banking functions of accepting deposits and
dispensing cash. “This is a great thing as it will save us a lot of
expenses”. Such expenses he said include the traditional brick and mortar
strategy that banks have employed for a long time.

In line
with his view that the traditional banking model has failed especially in Africa,
he foresees a business model that entails a high volume, low margin scenario
especially in developing countries “because in Africa many people have
very little money but do a lot of small transactions and as such we have to
accommodate that to keep them as customers, and the agency model and the
convergence of banking and telecoms will serve us well,” he told the
workshop. The cell phone boom in the country and the continent has created a
scenario that makes it possible for banks to tap into the unbanked as his bank
has done in the 25 years it has existed.

This
year’s US-Africa business summit, organized by the Corporate Council on Africa
(CCA), brought together over 1,500 leaders from the private and public sectors
in both Africa and the US. CCA is a membership organization of nearly 180 U.S.
companies dedicated to strengthening the commercial relationship between the
U.S. and Africa.

US
Secretary of State, Hilary Rodham Clinton, addressed the summit today.

WASHINGTON
– The Obama administration today pledged more assistance to Africa in its quest
to develop. Without giving figures, U.S. Deputy Treasury Secretary Neal S.
Wolin, speaking at the 7th US-Africa Business summit said two areas in particular
need serious attention: infrastructure and agriculture and that “in both
these areas, the U.S. stands ready to commit substantial resources and
technical assistance. But we look to Africa to lead the way,” he said.

Mr.
Wolin told summit participants that through U.S. government sponsored
investment arms like the Millennium Challenge Corporation, the Overseas Private
Investment Corporation, the Export-Import Bank and USAID the U.S. government is
ready to assist in projects such as the US$325 million power generation
facility in Rwanda to extract methane from the depths of Lake Kivu that will
double the electricity generation in that country.

Mr.
Wolin reiterated the new Obama approach to development assistance to Africa
“where we provide assistance to African nations, we will do so not as a
patron, but as a partner.” He however emphasized that the U.S. will look
for what he called “corresponding commitment” from African countries
in exchange for assistance especially in the areas of good governance and the
promotion of strong institutions that in turn establishes an environment that
stimulates private sector investment.

Global Financial Crisis

Mr.
Wolin’s address at the summit was part of a session dealing with how Africa can
look beyond the global financial crisis and financing of its development
agenda. Among panelists at the early morning session was former Goldman Sachs vice
chairman, Robert Hormats, who was last week sworn in as the Obama administration’s
Under Secretary of State for Economic, Energy and Agricultural Affairs; Russell
Loubser, CEO of the Johannesburg Sock Exchange; Thomas Gibian of Emerging
Capital Markets and Saki Macozoma of South Africa’s Stanlib.

Local Businesses

Mr.
Hormats told African governments that they should create an environment that
promotes local African businesses as foreign investors will be attracted to
where the locals are thriving.

On his
part Mr. Macozoma said that “some of the low hanging fruit is helping
African governments to be efficient with such things as e-government.”

Emerging
Capital Partners’ Libian said the next game change for Africa has to be
“the high speed internet that is being introduced throughout Africa.”

WASHINGTON – The 7th biennial US-Africa Business summit got off to a promising start with African technocrats charged with attracting foreign private investment putting a new spin on their sales pitch: Yes there are challenges in Africa but the opportunities are just great to pass.

The Namibian delegation included Haddis Tilahun, CEO of United African Group, the largest hospitality corporation in Namibia who told participants at a special Namibian presentation that returns can “be as high as 30%”. His success with UAG is symptomatic of the new breed of African entrepreneurs who do not confine themselves to their home country – he was born and raised in Ethiopia, lived in the U.S. and has lived in Namibia for the last 18 years.

At a welcome dinner to mark the official start of the summit, Obiageli Ezekwesili, Vice-President for the Africa region at the World Bank cautioned American businesses still holding out in investing in Africa due to fear that Chinese corporations with active support from their government have benefitted at the expense of Americans. She was particularly concerned at the disproptionate level of support the U.S. government has given to American businesses compared to its Chinese counterpart as regards to investments in Africa. She told American corporations to look to the World Bank which has designed programs designed to protect private investments in certain countries.

2010 World Cup

South Africa is next year’s host of FIFA’s word cup and it has pulled out all the stops in promoting the tournament at the summit. This will be the first time the continent is hosting soccer’s best extravaganza. Match Hospitality and SportsMark who are the official marketers of the program have a booth at the summit promoting the games. Executives from SportsMark said at the welcome dinner Tuesday that “if you plan to go to South Africa in the next 12 months, do it June 11 -July 11”.

The Corporate Council on Africa, which puts together the biennial summit, is a membership organization of nearly 180 U.S. companies dedicated to strengthening the commercial relationship between the U.S. and Africa. The business summit brings s together leaders from the private and public sectors in both Africa and the U.S.

Among African presidents participating at the summit this year include Jakaya Kikwete of Tanzania, Paul Kagame of Rwanda and Sassou Nguesso of The Congo.