Category Archives: Insight

Running the Numbers: Chinese Social Media and Dangote Industries

 

Tom Griffiths

Last week, we at Gong were treated to a lunchtime talk by Jonathan Smith of Hot Pot Digital. Jonathan runs a bespoke service, representing a number of the UK’s brands on Chinese social media sites like Sina’s Weibo (China’s Twitter-equivalent in both micro-blog format and number of users). His talk raised a question in my mind: what share of voice does African business news have on Chinese social media channels, as compared with Twitter?

China-Africa trade receives a lot of attention, both positive and negative, in English and French social media. Simply search for the words “China” and “Nigeria” on Twitter and receive a stream of news, statistics and viewpoints. This is of little surprise given China’s perceived importance in many of Africa’s economies. I was interested if a similar ‘conversation’ exists on Weibo.

The story I decided to test my hypothesis on was this week’s news that Dangote Industries, a Nigerian Conglomerate, intends to invest US$9billion in building the country’s biggest oil refinery along with petrochemical and fertiliser plants. Dangote Industries’ founder, Aliko Dangote, announced that his company will be putting up US$3 billion and seeking US$6 billion in loan capital.

My admittedly less than rigorous method of investigation was to compare mentions of “Dangote” on Twitter with mentions of “Dān gē tè (丹格特)” on Weibo over the 5th of September. Before going into the findings I would like to note that I recognise Twitter is widely used in Nigeria when compared with Weibo. I have looked at geo-tagged tweets from users outside of Nigeria to try to negate this bias however I realise any findings were always going to be heavily weighted towards Twitter.

The results: Weibo had only two posts that mentioned the story. Both simply stated the facts without commentary and provided a link to a longer write up. Both posts were made by petroleum industry trade publication’s Twitter accounts. Twitter, on the other hand, held a huge number of tweets on the news. Many of these came from Nigeria, however there were also many hundreds from Kenya, the US, Britain and Indonesia. Most tweets simply restated the facts, however a number commented on the potential job creation of the new factories.

The results were striking, even with the obvious bias in the experiment: 2 Weibo posts compared with thousands of tweets. It seems that the new Nigerian refinery just wasn’t a talking point on Weibo, despite the resource trade between China and Africa being so well publicised. However, as many African countries’ economies rise, will we see an increase in discussions on African business on Weibo?

It would be interesting to repeat the test on a piece of news that directly involves both China and an African country: an experiment for a later day.

 

The Art of Cultural Awareness and Sensitivity

 

Sally Maier

This month marks my two-year anniversary at Gong Communications and my four-year anniversary of living and working in London.

Having worked in the public relations industry in Hong Kong, Singapore and now London, people often ask me questions like “How do you find working in London as opposed to Asia?” or “I am moving to Hong Kong/Shanghai/Beijing. Do you have any tips for me?”

I still remember the single most valuable piece of advice, given to me by my old boss in Singapore before I moved to London. He said, “Sally, when you work in London, you have to try to be less blunt.”

I said: “What do you mean?”

My boss said: “For example, instead of saying ‘Do this for me please’, say ‘When you have a spare moment, would you mind doing this for me please?”

I said: “Oh, isn’t that a bit of a long winded way of saying the same thing?”

My boss said: “You will learn.”

This is just one of the many examples of cultural differences between working in the East and the West. The art of building cross-cultural sensitivity and awareness in the workplace and in our everyday life has become ever more important in today’s globalised world. For instance, at Gong Communications we are a small team but between us were born, brought up or have lived in countries including China (Shanghai, Beijing, Hong Kong), Singapore, Kenya, Ghana, Zimbabwe, South Africa, Madagascar, Tanzania, Uganda, France, Italy, New Zealand, UK and the US.

Here is a checklist of cultural sensitivity and awareness based on my personal experiences of working in the UK and Asia and working with companies around the world:

1. Communications method: When communicating with Asian or African markets where English is often not the native language, identify the preferred method of communication (both verbal and non-verbal). For example, in most Asian countries, emailing is often preferred as the primary communications channel, as this provides people sufficient time to digest information rather than feeling obliged to give an immediate response over the phone. Also consider if translation is needed. At Gong, I have found that Asia or Africa based clients or suppliers often prefer emailing to phoning whilst UK-based clients usually prefer calls. Having said that, regular face-to-face meetings are still crucial for effective communications.

2. Degree of politeness: As a Hong Konger working in London married to a French man, I realise the way Chinese people communicate can sometimes come across as “blunt” or even “rude” in the Western world whilst the way Westerners communicate can be considered “too polite” or even “fake” to someone from the East. My old boss’ advice is an example of this. It is not for me to say which is wrong or right, but it is important to bear this difference in mind to avoid unnecessary misunderstandings or hard feelings.

3. Reading between the lines: Since I was young I have loved learning English, but it was only after I moved to London that I started to fully experience and understand the depth of English as a daily means of communication. I found it confusing and frustrating at times as I made mistakes by literally taking people’s words at face value. Being aware of this cultural difference has enabled me to become a better communicator/manager at work. I now have a more complete understanding of what clients or colleagues are asking for or of picking up on the nuances within a piece of feedback.

4. Brainstorm: I found the working culture in London (and especially at Gong) to be generally collaborative, creative and entrepreneurial whilst in Asia (Hong Kong and Singapore) it tends to be more hierarchical, formal and practical. For example, in London, work brainstorm sessions are very common whilst in Asia they are not as popular as people are not used to randomly contributing ideas in front of a big group of people. Instead they often prefer to do their own research and then come up with ideas individually. This is important to know when trying to gather information and ideas effectively and efficiently from colleagues of different nationalities.

5. Trust: As the world has become more culturally and ethnically diverse, work ethics such as honesty, respect and diligence remain of vital importance in the global work place. Trust is still the most essential foundation on which to build a long-term relationship with clients, bosses, colleagues and friends regardless of their nationality or where they live. In this more digitalised and mobile age, there are no secrets and the safest way to communicate is to live up to your own principles and be yourself while being sensitive to the cultural differences of those around you.

 

The Africa Trade and Economic Cooperation Forum 2013

 

Isabelle Alenus-Crosby

Optimising Africa’s transportation infrastructure in order to increase international trade was top of the agenda at the 12th United States-Sub-Saharan Africa Trade and Economic Cooperation Forum (AGOA 2013) held last week at the African Union Headquarters in Addis Ababa, Ethiopia.

The African Growth and Opportunity Act (AGOA) was signed into law by President Clinton in May 2000 with the objective of expanding U.S. trade and investment with sub-Saharan Africa and to facilitate the region’s integration into the global economy.

Since the inception of AGOA, there has been a 300 % increase in total two-way trade between the United States and the African continent, and 2012 was proclaimed to have been the most successful year thus far.

With the current Act expiring in September 2015, this year’s Forum concluded that for the initiative to remain successful, Africa’s top priority is now to expand its trade infrastructure. Especially landlocked countries are currently unable to take full advantage of the opportunities that AGOA offers. Most of the roads connected to ports are congested, creating transportation bottlenecks not seen anywhere else in the world. For instance, it takes 24 days for a container to travel from Mombasa to Kigali and 20 days for a container to be cleared at the port of Dar es Salaam.

An integrated transportation network is therefore so crucial that according to some delegates Africa’s continued success depends almost entirely on it. A call to extend the Act for another 15 years has already been proposed by the African Union, and President Obama’s office has vowed to better communicate the enormous potential that this could mean for investors worldwide.

 

The future of scandal-hit hedge funds

 

Sara Firouzyar

Last month, the U.S. Department of Justice indicted SAC Capital, the Connecticut based hedge fund with c.US$15 billion funds under management, of insider trading.

The indictment, and a related civil case seeking forfeitures and money laundering penalties, imperils the future of the hedge fund and adds to a recent string of high profile corporate scandals rocking the financial services sector.

The US government has accused SAC of presiding over a culture where employees not only flouted the law but were encouraged to tap their personal networks of contacts for inside information about publicly traded companies; all suggesting a chronic failure in the fund’s compliance function.

SAC Capital is just the most recent example of the cost of compliance oversights for global financial institutions. Even with the best of intentions, those that fail to undertake rigorous due diligence and embed a culture of compliance, lay themselves open to scrutiny from increasingly unforgiving regulators and markets.

In light of these recent scandals and with the chaos of Enron and Madoff not too far behind us, much has been said about what can be done to make compliance and ethics programmes more than just corporate window dressing. Some have argued for the creation of a C-level compliance officer: someone with the experience and mandate to actually make things happen in the organisation.

Gong’s client True Office argues that compliance shouldn’t be confined to a single individual or to boardroom strategy documents – it should be equally embraced by every member of an organisation. In a recent Wall Street Journal article True Office CEO, Adam Sodowick, believes this can be achieved through the tactical use of gamification. Gamified compliance training, he says, creates an authentic experience that employees can relate to and apply to their role; changing a mandatory task that is often perceived as dull into a thought-provoking and sensory, ‘play-based’ experience.

However you want to play it, one thing is clear – it’s time for companies, and policymakers, to reject a tick-box approach to compliance programmes, and get much more serious about ensuring that integrity remains at the heart of business.

Kickstarting Madagascar: Shining a light on Africa’s forgotten island

 

Sarah Nicholas

Freelance journalist and friend of Gong, Emilie Filou has set herself a challenge: to tackle the chronic under-reporting of Madagascar in the Anglophone press.

Madagascar sits between the African mainland, Indonesia, and the Indian sub-continent. While its neighbours tell a startling story of growth and attract ever increasing media interest, the fourth largest island in the world is often overlooked by the English-language press. Is the country an awkward anomaly in the ‘Africa Rising’ narrative, or a final frontier market waiting to sky rocket like its Asian neighbours across the Indian Ocean?

A quick search for ‘Madagascar’ throws up talking cartoon zebras and the occasional lemur, but next to nothing about the political vacuum of a country which has spent the past four years without a functioning government. Nor is there any mention of the huge potential of the island’s textile, mining, agriculture and tourism industries.

Emilie wants this radio silence to end.

She has launched a Kickstarter project to crowd-fund her way to Madagascar and report back in words and photographs, producing a series of dispatches to tell the world what is really happening:

When she came to see the Gong team this week Emilie told us, “After four and half years of political vacuum, Madagascar is now the second poorest country in the world. The economy has stalled because of international sanctions; foreign direct investment has all but dried up; and tourism has slumped. This is all the more tragic because the country has everything it needs to succeed: a young population, a wealth of natural resources (minerals, oil), a relatively well-educated workforce, unique biodiversity and outstanding natural beauty, and huge tracts of fertile agricultural land.

“I need your help to finance the trip – I work freelance and don’t have the support of a big news organisation. Kickstarter funding will allow me to travel to Madagascar for three weeks in September to gather material needed to shine a light on the plight of the Malagasy people and the fantastic potential of the country.”

Emilie wrote the Lonely Planet Guide to Madagascar and since her last trip there in 2011 has written regularly about the country for The Economist, BBC Travel and the Africa Report. She has now exhausted what can be done remotely. This fresh batch of articles will be published in the Anglophone press over the course of the autumn; any unpublished material will go on Emilie’s website.

You can pledge your support via Kickstarter, in return for reports, insights and photos from Emilie: https://www.kickstarter.com/projects/1624070979/shining-a-light-on-madagascar

 

What are the advantages of choosing a public relations boutique in Africa?

 

Isabelle Alenus-Crosby

At Gong we work with companies in Africa, across a range of sectors, to raise their business profiles beyond local markets. In parallel, we position investors, focusing on Emerging Markets, at the forefront of international business reporting. We are a trusted partner that delivers high-quality news coverage, marketing materials, websites, advertisements, and content, resulting in excellent return on investment. However, we believe that the Top 3 advantages of working with a boutique agency are:

  • Personal touch – you’ll be working with a select, very carefully chosen team whose raison d’être is to get the job done.
  • Know your client – the team that pitches a piece of new business to you is the team that you’ll be working with when you become a client.
  • Well connected– a necessity, because the world is changing so quickly.  At a boutique agency, your team is always very flexible, nimble, and in the know.

 

If we look at the statistics for Africa, we can see that it is taking off much like China and India were a couple of decades ago. Africa’s collective GDP was USD 1.6 trillion in 2010, roughly the same as Russia, and by the end of this decade it will have grown by another trillion dollars (IMF).

Every other statistic is improving and increasing too: stability, consumer spending, discretionary income, urbanisation, population. PR professionals need to be able to take on the world at a moment’s notice. We bridge the gap between client and public by continuously keeping up with new trends and developments. The spending power of the newly emerging middle-class affects all companies in Africa, and it is important to know how to communicate to an audience that is becoming more sophisticated by the minute.

In newly emerging economies, the companies we work with are often setting the example: They are the trend-setters of a brand-new age. Often, they are playing catch-up, and in order to compete globally, with the ever increasing importance of the internet and social media, they need an experienced partner keeping all their fingers on every pulse. Ever since public relations agencies came into existence, boutique firms have had to cope with fewer layers of bureaucracy, and therefore move deftly through the phases of a brand-new campaign, providing services at a better price thanks to lower overheads. Need we go on?

 

Google sets its sights on Africa

 

Isabelle Alenus-Crosby

Google’s announcement to expand mobile broadband in Africa could revolutionize life on the continent. In the developed world, Mobile Web connectivity is such a part of everyday life that we take it for granted. This is not the case in Africa at all, but might be about to change. Google stated recently that it aims to dramatically improve Internet access on the continent by 2015.

The Internet in Africa still has a very low penetration rate, and measurable parameters such as overall number of hosts and available bandwidth indicate that it is very much behind the “digital divide“. Within Africa itself there is an additional divide, with most infrastructure concentrated in South Africa, Morocco, Egypt, Mauritius and the Seychelles. The Internet’s full potential therefore remains largely untapped in Sub-Saharan Africa.

Today, broadband penetration is still very low compared to regions of similar income, and although 15% of the world’s population lives in Sub-Saharan Africa, only 6% of the world’s Internet users do (Google). The telecommunications market in Africa is one of the fastest-growing in the world. Since 2000, mobile telephony in Africa has been booming and has become substantially more widespread than fixed line telephony.

Telecommunication companies in Africa are already looking specifically at Broadband Wireless Access technologies as the key to make Internet available to the population at large. The importance of this cannot be overstated. Internet is after all a tremendous, undisputed force for economic growth and social change.

On top of bringing people together, it also provides an outlet for new forms of innovation, entrepreneurship and social good. It is a dynamic tool for stimulating economic growth and has the ability to bring news and markets to even the remotest of populations. Fernando de Sousa, General Manager for Africa Initiatives at Microsoft, stated that by 2018 Africa will have a workforce of 500 million people. A big part of them will probably be entrepreneurs and will come up with new ideas, which can be turn into real projects and businesses.

It is therefore crucial that they have access to the necessary tools!

 

Reinforcing North-South Trade

Isabelle Alenus-Crosby

At a time when South-South trade is becoming a force to be reckoned with, the North is jumping into action. Is it too late? In this global and growing world, there might just be room for everyone, and I expect that both the US and the EU will regain some footing in Africa in the years to come.

Power Africa, President Obama’s initiative to increase access to low cost energy, and Trade Africa, the initiative to boost trade with and within Africa, have both been written about extensively since Obama’s visit to the continent recently.

President Clinton’s African Growth and Opportunity Act (AGOA) however seems to have been ignored somewhat. And yet, the 2012 Presidential Directive on Sub Saharan Africa, talks about a new and enhanced AGOA, with the potential of making the U.S./Africa trade relationship as significant as the one between the U.S. and the European Union. (The Africa-EU Partnership has also announced that they are entering into “a new phase” with an increase in Trade agreements).

Next month, Washington D.C. will host the 2013 U.S.-Sub-Saharan Africa Trade and Economic Cooperation Forum in Addis Ababa.  Trade and investment-related issues are top of the agenda and it is expected that the “new and improved” AGOA will finally be revealed in all its glory.

I guess we should therefore expect extensive (although belated) coverage soon.

Power for Africa

 

Isabelle Alenus-Crosby

Until recently, Africa had a small, very wealthy top, a broad base of poverty, and no middle market to speak of. Today the continent is developing into one of the largest mass markets in the world.

However, many Africans are still trailing behind. The new $7 billion “Power Africa” initiative, that President Barack Obama announced on June 30th, could contribute significantly to push the lower class towards the middle. Increasing electricity production and distribution throughout sub-Saharan Africa is undoubtedly crucial to the entire continent’s success. The fact that Obama put emphasis on “Green Energy” (Solar, Hydrogen and Wind in particular) was very much in line with the rest of his statements that day, which brimmed with clear insight into Africa’s lingering issues.

I have transcribed my three favourite parts of his (now famous) speech and would like to share them with anyone who might have missed this.

“I am proud to announce Power Africa – a new initiative that will double access to power in sub-Saharan Africa… And in partnership with African nations, we’re going to develop new sources of energy. We’ll reach more households not just in cities, but in villages and on farms. We’ll expand access for those who live currently off the power grid. And we’ll support clean energy to protect our planet and combat climate change”.

“Look at Zimbabwe, where the promise of liberation gave way to the corruption of power and then the collapse of the economy. Now, after the leaders of this region brokered an end to what has been a long-running crisis, Zimbabweans have a new constitution, the economy is beginning to recover. So there is an opportunity to move forward — but only if there is an election that is free, and fair, and peaceful, so that Zimbabweans can determine their future without fear of intimidation and retribution. And after elections, there must be respect for the universal rights upon which democracy depends.”

“In much of Africa you see women doing work and not getting respect. I tell you, you can measure how well a country does by how it treats its women.” President Obama also emphasized that Mandela’s values are Africa’s future and that African youth had to seize a “moment of great promise”. Only the current Zimbabwean government  lashed out at Obama following the Cape Town address.  I guess that in itself is quite meaningful.

 

Obama’s African visit

 

Isabelle Alenus-Crosby

President Obama’s long-awaited trip to Africa is coming to an end, and he didn’t manage to hide the real reason he was there.

Many Presidents are visiting the continent these days, but the fact that Obama is half white American and half black African means that, in Africa itself, his visit has generated a lot more interest than when (for instance) China’s new president embarked on a trip less than two weeks after taking office earlier this year. What also differentiates Obama from the others is that he makes great speeches, and I especially liked his ideas for a “Power Africa” initiative and “sustainable” African energy strategy.

All through his trip, the President has looked happy, relaxed, and “at home”, despite all the security that he has surrounded himself and his family with. What seems to have been most significant to those he went to visit is that, in all three countries (Senegal, Tanzania and South Africa), Obama emphasised that he welcomes world economies turning their sights to Africa. However, as his trip matures, his real views are increasingly being felt.

African leaders should “pick their international partners carefully”, and “push back against countries that bring in their own workers”, a clear criticism of China. Another clear criticism of China was Obama’s “wildlife and importance of tourism speech”, condemning illegal trafficking. The White House has already issued a statement this morning regarding the launch of a new anti-poaching initiative in Tanzania as of next month.

From the cheers heard yesterday in Dar es Salaam however, it is clear that the word “partnership” is the magic word in Africa these days. When Obama said the West’s goal is to “partner” with Africa, the crowds went wild.

It is important to note that both the USA and Europe are home to large communities with strong African heritages and that Africa and America/Europe often share a common language, making training and technology transfer much more straightforward. Africans know this, and they clearly want it. We also have a common history, for better or for worse. It is Europe’s common history (mostly violent) that unites them now within a European Union that, even though it is still in its infancy, seems to be doing alright despite some teething problems.

The younger generation in Africa, Europe and America have a lot in common through a shared history, that we are coming out of together, and the significance of this cannot be trivialised. This does not mean that partnerships with China are a bad idea.  In fact, Africa has already partnered successfully with many countries in Asia, forming the bulk of the South-South trade. Obama’s words should however be a warning to China, one that I’m sure they’ll heed given the investments they’ve made on the continent in the last decade.

The bottom line is that the whole African continent is full of promise. I would therefore like to reiterate what I wrote in my previous blog: A united Africa will be stronger, but I agree that it must choose its partners well. Yesterday afternoon, Obama revealed a venture, dubbed ‘‘Trade Africa,’’ that aims to increase the flow of goods between the United States and sub-Saharan Africa. The initial phase will focus on East Africa — Burundi, Kenya, Rwanda, Uganda, and Tanzania — and in a couple of years, the phase will be extended to the rest of Sub-Saharan Africa.

Let’s hope that this will be a partnership made in heaven, and just one of many.