The American Chamber of Commerce in Madagascar (AmCham) was a sponsor of the latest Salon RSE&IDD that took place at Novotel Alarobia on October 6-7. The event, co-organized by Ur-CSR Consulting and BuyYourWay, gathered different stakeholders from the public and private sectors, the civil society, and international organizations.
The two-day exhibition was an opportunity for private companies to highlight their approaches in terms of Corporate Social Responsibility (CSR) and their initiatives towards Sustainable Development Goals (SDGs). A few AmCham members were present at the Salon. Five of them share their impressions of the event.
ISCAM Business School
ISCAM is known as one the leading business schools in Madagascar. Justin Nathanaël Andrianaivoarimanga, Ph.D., in charge of Master’s and international programs explains that as ISCAM trains future private sector leaders, the school is committed to offering trainings on Sustainable Development and CSR. This is the reason why ISCAM has launched a new master’s program in partnership with IAE School of Management in La Réunion and Université des Mascareignes in Mauritius. The Master in Sustainable Business Management is now open to prospective students.
Michou, a student enrolled in the program, says she is impressed by the study cases and different CSR approaches adopted by companies. She finds that Malagasy companies in general do not have a structured CSR strategy. Dylan, another student, explains that the program has provided him networking opportunities and quality teaching with trainers from Mauritius and La Réunion. He added that the Salon RSE&IDD showed that Malagasy people are not familiar with nor captivated by sustainable development and environment protection yet.
El Bissap Mada
El Bissap Mada (EBM) is an individual start-up created in December 2021 and specialized in the production and sales of hibiscus-based products. Their products are now available in major supermarkets in the capital city. Toky, member of the team, explains that EBM seeks to show the therapeutic properties of hibiscus. The company uses 100% natural products, recyclable packaging and employs young people. EBM sees the Salon RSE&IDD as a great initiative. As a young company, they could approach new customers and build partnerships with CSR and SD stakeholders during the event.
Rio Tinto/QMM
QMM has never missed any edition of the Salon RSE&IDD. As a mining company, they started carrying out CSR activities very early in Madagascar. A lot has been done in terms of restoration and rehabilitation of the mining area, community development, education, water management, and so on. For the Salon RSE&IDD, QMM wanted to promote the first protected areas established near a mining exploitation in Madagascar, starting with Mandena. Besides, Andry Francis, Media and Events Advisor, acknowledges that the Salon has evolved over time and has seen the increased participation of different stakeholders from various sectors. He adds that QMM is delighted to discover during the Salon that the government is planning on making CSR a law. “Today that we see fire destroying our national parks, our primary goal is to protect the environment; and everyone of us is responsible and should be involved,” Andry Francis concluded.
Telma
Beyond being a telecom company, TELMA is committed to the society and implements three categories of CSR activities: digital inclusion (to make telecommunications a lever for economic and social development), environment protection (against climate change), education (by building Sekoly Telma – or Telma schools – across the country). Additionally, a new initiative aiming at recycling unused or broken electronic devices has been recently launched. Through the project, Telma will repair the collected devices and distribute them to different associations as part of the company’s CSR activities. RABENJAMINA Christèle, in charge of the CSR and Impact department, explains that the Salon RSE&IDD gathered the private sector and offered networking and partnership opportunities. “We should favor partnerships. Private companies, their partners, and associations must bring together their skills, share their respective expertise, learn from each other, and collaborate,” she added.
Mutuelle de Santé Harena
It is the first time ever for Mutuelle de Santé Harena to be involved in the Salon RSE&IDD. The organization promotes access to quality health services and contributes to SDG3 “Good Health and Well-Being”. Mutuelle de Santé Harena proposes to companies to include health insurance in their CSR strategies. Rohintsoa Randriamahefa, coordinator of the health care mutual, regrets that the health component is sometimes sidelined by private companies in their CSR strategies, compared to environmental commitments. Anyways, she was pleasantly surprised with the outcomes of their participation in the event, including new partnerships with other stakeholders and donors. “They should organize the Salon twice a year!” was the message Rohintsoa wanted to share with the organizers of the event.
The AmCham is looking forward to the 8th edition of the Salon RSE&IDD next year!
In the 13th edition of The American magazine, Romy Andrianarisoa Voos, as a representative of the private sector within the GEM[1], put a stress on the critical role of the private sector in the fight against climate change. Energy transition is a key component of the commitment made by Madagascar last November during COP26. Just to recap, Romy stated that Madagascar would take a made-in-Mada path in its energy transition where fossil energy will not be banned.
How is Madagascar’s energy mix going to look like?
The strategy is clear. Madagascar will lean on fossil energy sources and renewables. However, in the absence of the exact data about the reserves of fossil fuel in Madagascar, we are unable to define the ratio and the timeline. Our transition will need significant fundings.
If we look at the fossil and oil industry, a couple of issues must be addressed. Effective revisions of oil and mining contracts are key to ensure Madagascar’s competitiveness. Then, securing these investments must be part of the government and all public institutions’ vision. A coherent set of policies to structure the energy sector must be adopted, including an appropriate capacity-building policy for Malagasy experts. Madagascar does have a very low number of oil and gas engineers, and importing expertise has become a mandatory stage. The vision that the extractive industry can be a lever for sustainable and inclusive development must be shared by all policymakers. Good governance is then essential. The boom in the energy sector should be felt at the levels of other related industries – food, marine, etc., and at the level of the population, the heart of the impact.
If we look at the renewable energy sector, we are on our way to promote greener energy. We are blessed with 365 days of sunshine. Hydro projects like Sahofika and Volobe are huge but still, securing investments must be made a priority. The deployment time frame of such big projects must be made clear shortly after signing the agreement.
Why is priority given to solar energy?
First of all, unlike heavy projects such as Sahofika and Volobe, implementing solar energy projects does not require a lot of advanced technologies. Solar energy proved to work immediately. Wind energy could work in Madagascar but also needs huge investments that require a certain level of security. In Glasgow, we talked about hydrogen as well. Unlike in countries such as Australia, Namibia or Germany, hydrogen projects are still at a nascent stage in Madagascar. All these options should be considered in the energy mix. Our energy policy must be as flexible as possible. The majority of our population is based in remote places with no access to electricity. Our potential in solar and renewable energy must be explored as much as possible.
How does our legal framework support the promotion of investments in the energy sector?
We acknowledge that there are efforts made by the EDBM and the MEDD to secure investments in Madagascar. However, the process remains sadly slow. With the pandemic and the current crisis in Ukraine, we are more than ever aware that Madagascar must be energy independent. However, the criteria to promote investments in Madagascar are not met yet. The call for expression of interests in investing in oil blocks in Madagascar must be transparent and competitive. The OMNIS must provide investment incentives.
Madagascar must revise the Mining Code, the Investment Code, and the Petroleum Code. The extractive industry must be exempted from VAT to make the sector more competitive. Madagascar runs out of expertise to implement renewable energy projects.
It is acknowledged that Madagascar was granted a 50-million-dollar funding from the World Bank to finance its climate change adaptation plan conducted by the government through the MEDD. Surprisingly, the operationalization of all those initiatives struggle to kick off, and we really wonder why.
How do the private sector and public institutions collaborate to support Madagascar’s energy transition?
All energy projects must be done in a PPP framework. Access to energy is a government priority. The management of our natural resources belongs to the Government. We have a national energy policy, but we do not have the expertise. That is where the private sector intervenes. A very important point to note is, we must ensure that the fiscal, economic and environmental impacts of those investments benefit the population.
In late 2021, the private sector raised their voice regarding the slow evolution of Sahofika and Volobe. Do you understand where the blockage is?
Despite the lack of expertise in decision-making, the private sector has shown its readiness to invest. Everything is there, the decision belongs to the Ministry. The private sector seeks to understand what is blockage in the implementation of such big investment opportunities. The signal that Madagascar sends to investors is that signing an agreement does not necessarily mean a will to take concrete actions. Let us work and translate our commitments in Glasgow into concrete actions. All the tools are here. Now we must move forward.
Do Malagasy companies understand what energy transition is?
First and foremost, Malagasy companies’ appropriation of all SDGs is of paramount importance. They must understand what energy transition is; unfortunately, that is not the case yet. They must understand the process of shifting towards the use of greener energy. They must be accompanied and supported on how to deploy energy projects conveniently.
Simply moving towards the use of solar energy is not what is called energy transition. It is also about the use of a greener production process, an integrated waste management, and the use of machines using green energy. It is a matter of circular economy. We must understand that energy transition is a 360-degree approach that requires strong capacity building. And that is where TF261 intervenes. That is why strategic meetings at the regional level are important.
Your message to the stakeholders in the energy transition?
We have seven years left to reach the SDGs. It is urgent that Madagascar and the Indian Ocean islands set sub-regional blue economy strategies, carbon offset strategies, and turn climate change as business opportunities. If the private sector does not see business opportunities in the energy transition, then its appropriation would be very difficult. “Sustainability” must be a watchword, and that is where the government can provide its support.
[1] Groupement des Entreprises de Madagascar, where Romy is the President of its Sustainable Development and Business Ethics Commission (DDEA)
AmCham’s editorial team had the opportunity to speak to the Minister of Energy and Hydrocarbons, Andry Ramaroson, where they could talk about Madagascar’s commitment to energy transition. As a reminder, COP26 happened in Glasgow, Scotland in November 2021 that President Rajoelina in person and former Minister of Environment and Sustainable Development Baomihavotse Vahinala Raharinirina attended. Despite a quite large Malagasy delegation, Andry Ramaroson was absent from that highly-expected event. He explains that his presence in Madagascar was essential and that Madagascar was well-represented enough.
Could you tell us briefly where Madagascar stands now in its energy transition which was among the commitments that the country made during COP26?
First of all, I would like to stress that the government conducts its work in accordance with the principle of continuity of the State. So, please let me start with a few statistics first. Our President has the vision to produce a minimum of 800 to 1,000MW by the end of 2023, compared to 450 to 500MW earlier. The electricity that we are using now is mainly generated by fossil fuel-powered energy plants. Now that we are talking more about energy transition, we must define what it is first. To the MEH, it is not the use of solely renewables but the shift towards the use of renewables. By the end of 2023, all the thermal centrals must all be hybrid. Concretely, if we produce 100MW from 100 percent thermal source, by the end of 2023, Madagascar should be able to produce 100MW from thermal source of energy and 100MW from renewable sources of energy, such as hydro, and especially solar because solar energy projects are easier to implement and can be achieved in one presidential term.
We must assess our potential in the energy mix. Sahofika was signed 2021, and it was seen as a key solution to power supply and expensive energy. However, the objectives set by Sahofika cannot be reached in one political term. We must be technically and politically cautious. Following the Andekaleka incident in January, we lost 90MW. While the population complained about longer power cuts, they did not see that it cost Jirama a loss of 50 billion Ariary a month.
Speaking of Sahofika and Volobe, the private sector is highly concerned about the blockage. Could you please explain where we are now with these projects?
First, I am interested to know where the private sector stands in these two projects. Are they seeking to maximize public interest or only their own benefit? I think they are seeking both. That is fair because private investors come with the funds. However, it is less fair to oblige the government to sign an agreement where a more satisfying deal can still be negotiated. At the very beginning, Sahofika could provide electricity for 7 cents per kWh. If we signed the contract at that time, we would have lost 2 to 3 cents per kWh. With better deals, the whole country will be able to enjoy quality and affordable energy. I can understand how impatient the private sector is. But I fail to understand why the private sector focuses on Sahofika and Volobe when other projects such as Ambodiroka, Ranomafana, Antetezambato are in progress as well. We must consider more parameters. These projects have the potential to boost local economies. I am not blaming the private sector; I am just drawing their attention on these important parameters. I am still wondering what role the private sector does play here.
Cumbersome procedures – both local and international – also delay the implementation of these projects. These million-dollar fundings come from different institutions governed by their own procedures. We must be cautious with regards to these technical aspects. When I took office in 2019, only an MoU was drafted. In 2021, we reached and signed an agreement. That is to say how impressive the progress we made was in only three years. Signing Sahofika was a huge step. However, let us not forget smaller-scale projects involving other actors in the private sector.
Do we have technical skills to handle energy transition projects?
Yes and no. We do have skilled human resources but only at a certain limit. Our engineers and technicians have the needed skills. However, we do not have a culture. In this case, we import expertise to manage huge projects. Smaller projects of 250 or 350 kW are led by Malagasy people. The challenge lies in the leadership, especially when multiple decision-makers are involved at the same time.
Why such focus on solar energy?
Despite a few ongoing projects, we do not really explore wind energy in Madagascar because of our limited potential. As a technician, I am not personally convinced with the exploitation of wind energy in Madagascar. I am not leaning on wind projects. Hydro and solar are my trumpeted causes. You may wonder why focusing on hydro while the country faces water problems. We do not have water problems; we do have water management problems. These are two different things.
Do investors trust in Madagascar?
As a member of the government, I can tell you investors trust the Malagasy government. I am not saying that all is well. We have many challenges still left to overcome. I keep saying investors not to compare their practices in their countries and those in Madagascar where the context is totally different. Even aware of the challenges of doing business in Madagascar, many investors still demonstrate their commitment to working with us. The challenges are real, but are meant to be overcome. It is my responsibility to establish an environment of confidence and trust.
Malagasy companies seem not to know what energy transition really is. What efforts has the Ministry made in this regard?
I acknowledge that we still have a long way to go in this regard. My Ministry must make more communication efforts. In the next coming weeks, a dialogue between the public and private sectors will be open to explain what energy transition is and what legal provisions are applicable. The Ministry’s door remains open to whoever partner is willing to collaborate. I am planning to hold a regular dialogue with the private sector on a quarterly basis, even virtually. Every Thursday, I welcome anyone who wants to speak with me personally.
Your message to the private sector?
If at some point, a company has any issue, doubt, or concern, reach out to me personally, even without a formal meeting request. My door remains open to the private sector.
Are we ready for energy transition then?
The government is ready; but we cannot walk alone. We need the private sector’s support. There is a solution to any problem. There is an explanation to any unclear information. We acknowledge the lack of expertise. We acknowledge that sometimes there can be misunderstandings. The Energy law may not be adapted to the PPP laws and sectoral laws. But these are challenges that can be solved through dialogues. Dialogue is essential.
It has been almost two years that we have lived with Covid-19 that still hits all aspects of our lives very hard. Education is one of the sectors most affected by the pandemic, and we are now wondering if the United Nations’ goal will be reached at all. In Madagascar, is education a priority at all? One thing is sure, we are stuck in a sort of vicious circle: as suggested by Engle and Black (2008), we admit that education is a means to exit from poverty; but at the same time, poverty holds a lot of Malagasy back from enrolling in education.
Education in Madagascar: a mixture of cultural issues, policy gaps, and lack of infrastructures
There is a deep “culture of poverty” that shapes parents’ values and aspirations (Momo et al., 2021). Achieving higher education has a lot to do with household living standards; and school leavers are more likely to come from poor households. We live in a country still governed by traditional conceptions, where time-consuming domestic duties are given more priority than formal education. And that is normal.
That important cultural aspect is reinforced by an evident policy gap. Developing countries in general neglect early childhood education (ECE) (Neuman & Powers, 2021). UNICEF’s 2018 MICS reveals that only 15 percent of Malagasy children aged under 5 are enrolled in an education program. A World Bank report argues that kids who have access to ECE are less likely to drop out of school, and are more likely to complete more years of schooling (2018). In Madagascar, “Education for All” sounds more like “access to primary education”. After five years of schooling in primary public schools, our “kilonga” in rural areas are very likely to stop. And this leads us to the problem of infrastructure.
The first necessity is to have a school nearby. Unfortunately, we can locate many “education deserts” in the developing world (Rodriguez-Segura & Kim, 2021) where people have to travel miles to find an education center. Then come other issues. From a study in 33 African countries via an econometric method, there is a strong interaction between fuel costs, low income, and energy-inefficient dwellings. Sule et al (2022) speaks of “energy poverty” that provides unequal education opportunities for rural kids. WWF Madagascar (2021) reported that a tiny 5 percent of rural population has access to electricity (and only 15 percent at the national level, plus power-cuts). Moreover, with this never-ending Covid, there is a clear demand for digital infrastructure, even unexpressed.
What urgent actions to take?
Building schools, granting energy access to households through state intervention, especially in rural, poor and remote places, providing basic living conditions to Malagasy households, … There is no need to mention that these are urgent actions that policymakers must consider.
Early childhood education must be on the policy agenda, and education specialists must assist the government in designing and funding more ECE institutions. So far, projects aiming at supporting education are more relevant for improved enrolment (the number of kids schooled), rather than increased achievement (quality education) (Brichler & Michaelowa, 2016). We should now think about how to integrate all the stages of education in the process. Aid should go not only to primary education, but to ECE and secondary education as well. A certain balance is needed. UNESCO’s 2019 data show that if 76 percent of Malagasy kids were enrolled in primary schools, only 27 percent attended secondary education, and only 13 percent reached high schools.
Anyways, it is not that surprising if our younger peers question the purpose of studying at the higher levels. Ultimately, the root of the problem would be a failing labor market. With that in mind, the private sector has a key role to play. But that is a completely different and long debate.
In a word, even if two years have gone by, the change in pedagogy driven by the pandemic is still qualified a “sudden change” (Ovedotun, 2020). We are gradually transitioning to blended teaching and education. More than ever before, education must be made a priority. Global data show that a significant progress (in quantity) has been made these last decades. 89 percent of children worldwide had access to primary schools in 2018, against 72 percent in 1970 (World Bank). But still, according to UNESCO (2019), 258 million kids remained out of schools at the global level, and unfortunately, the largest proportion was recorded in developing countries.
References
Reaching the United Nations’ “SDG 12: Responsible Consumption and Production” requires that we opt for a more sustainable use of our natural resources, that we manage chemicals and waste in a more responsible way, and of course, that we substantially reduce our waste generation.
What do they wear in the Western world? What do we wear in Africa?
Their fall into the trap of fast fashion. Brands like Zara and H&M are omnipresent in the high streets and biggest malls in Europe. The global fast fashion market value was estimated at USD36 billion in 2019 and is expected to reach up to 43 billion in 2029 (Statista Research Department).
Fast fashion industry produces 2 to 4 percent of manmade CO2 emissions every year, which is way more than what global aviation and maritime transport generate (Our World in Data, 2020). Textile production is responsible for 38 percent of greenhouse gases emissions annually. 62 percent of synthetic fibres and 24 percent of cotton used in the fashion industry are fossil fuel-based.
Manufacturing is one thing. Transporting, packaging, and selling add more to the carbon footprint of those finished goods. Then comes consumption. Only one percent of materials used to manufacture new clothing are recycled, and only 15 percent of clothing is used with an aim of recycling. What happens to the rest?
Our dependency on secondhand clothes. According to the Ellen McArthur Foundation (2021), Westerners wear the same clothe 36 percent less times than 15 years ago. This means that their purchasing frequency has significantly risen over time. Used and unwanted clothes then end up in large African markets like Kenya (185,000 tons of secondhand clothes in 2019) or Uganda, and in smaller ones like Madagascar. According to the Global Fashion Agenda’s Pulse Report, Africans now buy twice more garments than in the mid-2000s.
We can acknowledge that secondhand clothes give Africans access to cheap clothing. We admit that secondhand clothing business creates jobs – decent or not – for a lot of Africans. We are very likely to come across new and unused garments from fast fashion brands with their original labels in local thrift shops.
Sociologists explain that “re-using” things is part of the African culture. We cannot deny that that is already a significant step towards more responsible consumption. Anyway, as responsible consumers, we are urged to mind what we buy and wear.
No matter what, there will be tons of unsellable or waste clothing that will unfortunately end up rotting in toxic landfills in Africa. For example, on the outskirts of Accra, Ghana, we would find a 30ft-mountain of discarded clothing. There is a risk that African countries serve as huge trash bins overloaded with used and dirty garments from western countries. But it is not too late to change the course of events. Without waiting for adapted policies, let us start by minding what we wear!
On October 1st, Deputy Special Envoy for Climate at the U.S. Department of State, Dr Jonathan Pershing gave a briefing after the first part of his trip to Africa and discussed the Biden Administration’s climate policy and how the U.S. is working with African countries to address climate change.
What does climate change look like today?
Dr Pershing listed a few important impacts of climate change that the world is seeing today, including the significant rise in global average temperature, the continued rise in sea levels putting coastal cities at risk of flooding, droughts across the African continent, severe weather events, flooding and erosion. Dr Pershing also highlighted the increase in disease vectors such as malaria and zoonotic diseases. He insisted that those damages are not only the problem of individual countries and that the world is set to address them together.
Africa: the continent of the future
Dr Pershing explains that the U.S. sees Africa as the fastest-growing continent, a continent that “in many ways represents of the future.” Africa is not on a similar path to that pursued by the West which was high-carbon-intensity, when it comes to innovation in telecoms, for example. Africa chose to go directly wireless and now has high penetration of mobile telephony. Dr Pershing stated that Africa could do the same thing in other sectors such as power, transport, and industrial activity. Africa can explore renewables at low prices, and it is the right time to invest massively in infrastructure. A lot of opportunities are accessible in Africa: minerals in Kenya or Namibia, forestry in both Congos, fishing in coastal nations. Dr Pershing states that the U.S. sees those resources as great opportunities not only for solving major global problems, but also for partnering with the continent for a mutual benefit.
In this perspective, U.S. companies are still investing in climate-dangerous oil and gas projects in southern Africa. When asked about regulatory frameworks aiming at stopping this sort of investments, Dr Pershing reported that the trends show that companies investing in fossil fuel are more exposed to financial risk and will hardly get loans from banks. Such investment is becoming unworthy today and betting on a fossil fuel future as an investor is no longer a smart move. In Africa, even Gabon is looking to move away from oil and gas into “zero-carbon”.
Biden’s climate pledge to developing countries
“It’s very clear that the majority of African nations contribute very, very modestly in terms of their greenhouse gas emissions but are going to bear a disproportionate share of the impacts.”, Dr Pershing stated. It has been decided that developed countries would put some of their resources into poorer countries. The U.S. envisioned to mobilize $100 billion annually. However, only about $80 billion was made available in 2019. Last April, Biden announced to double the amount of money pledged by the Obama administration, then doubled it again at the UN General Assembly in New York. Now, the U.S. is at sixfold increase in its adaptation support and is planning to work with other stakeholders including the World Bank, the Climate Investment Funds, and the USAID. Regarding Africa, the U.S. will come up with a set of programs after looking at priority problems in different parts of the continent. Partnering with local institutions and other donor countries is key to solve those identified problems.
Five African countries out of 40 invited by Biden to the climate summit last April
South Africa, the Democratic Republic of Congo, Kenya, Gabon, and Nigeria were the only African countries invited to the climate summit. Dr Pershing explained that South Africa is part of the G20 discussion, and it was normal they were present. Nigeria has a huge economy and the largest population, so the largest voice in Africa. Kenya was invited for its highly ambitious strategies and interesting green bond effort. Finally, the DRC is the largest holder of tropical forest in the continent, and that represents a huge opportunity.
Considering that Biden’s agenda is currently under threat in Congress, Dr Pershing reassured that the government is pressing the Congress to move forward and there are reasons for optimism, as the bill is a critical one. He remains confident that significant resources will be mobilized to combat the threat of climate change.
Source: Digital Press Briefing with Deputy Special Envoy for Climate, Dr Jonathan Pershing, October 1, 2021.
Edited by Kenny Raharison
According to a 2020-report by MusicWatch, country music is the third most popular musical genre in the U.S. Amid the pandemic, country music was the “genre of music that is not hurting right now” – Bloomberg wrote last year. Country signers know how to build audience loyalty despite the growing musical trend toward hip-hop and pop domination.
Let us go back to the roots!
In 1927, Victoria Records, one of the first players in the recording industry, went looking for “hillbilly” musicians in Bristol, Tennessee. Two local acts – The Carter Family from Virginia and Jimmie Rodgers from North Carolina – signed the recording contracts. The Carter Family played old-time mountain music and Jimmie Rodgers sang ballads using a vocal technique called “yodelling”. In 1928, Rodgers’s recording “Blue Yodel” was a huge musical and commercial coup, with a million copies sold. The two acts paved the way to other country artists. Contrary to what a lot of American people still believe until today, Nashville was not the birthplace of country music. According to a resolution passed by the U.S. Congress in 1998, Bristol, Tennessee was.
At the beginning, hillbilly performers used fiddle, guitar, banjo, and sometimes Appalachian dulcimer, harmonica, and mandolin. Later in the 30s and 40s, traditional country music became influenced by other genres: blues and gospel. Until today, many music professionals claim that country music has African-American roots as well. A point to note is, country music had always been labelled “hillbilly” music until 1949 when it was officially given its current name.
In a context of war and crisis, country music conveyed messages about poverty, orphaned children, and loneliness. Today, the lyrics are among the reasons why American people are attached to country music.
Country music is still on track in the 2020s. Here is why.
Unlike pop singers who are sometimes unable to sing fully live, most country singers are very talented performers and vocalists. They work with knowledgeable musicians who perfectly master the instruments that they play. Lyrics tell meaningful stories and display various emotions. It is very common to relate to what a well-written country song is carrying as a message. Country singers do not merely sing in an explosive show, they “share” a story, sometimes in a very intimate way. Songwriters tell a story in a very simple way and do not ask the audience to decode what hidden message is behind a song.
In the early 2020s, country music has seen an impressive revival. Many music executives explain that country music is comforting during these weird days. Others explain that country music goes hand in hand with drinking – since alcohol sales have soared as well during the Covid pandemic. Another explanation would be country fans are starting to stream more country songs rather than buy physical disks.
Today that life in the U.S. is gradually getting back to a certain normalcy, the Grand Ole Opry in Nashville, the heart of country music – which started broadcasting since 1925 – has reopened its door to the public. The weekly concert has officially resumed. Masks off, no more social distancing.
Sources: MusicWatch – Bloomberg – Britannica – Chicago Tribune
During the U.S. – Africa Business Summit, USAID Administrator Samantha Power gave an overview of the U.S.’ relationship with Africa over the last 60 years since the USAID was born and defined new directions moving forward.
Samantha Power recalled the assistance the U.S. is providing for its partner countries in key sectors such as education, healthcare, agriculture, and energy and the significant impact of its support on the lives of many people worldwide. Moving forward, the relationship between the U.S. and Africa mostly based on aid must evolve into a cooperation, with more sustainable impact, fuelled by trade.
The Biden-Harris Administration launched during the Summit the Prosper Africa Build Together Campaign to “elevate our commitment to two-way trade and investment between African nations and the United States,” Samantha Power said.
While acknowledging the role of public investment in developing countries, she claimed that the private sector is the key driver to Africa’s long-term economic growth and prosperity.
“Through Prosper Africa, USAID will directly connect American investors with African businesses ripe for investment by funding delegations and making crucial connections to local actors, leveraging our long-standing relationships on the continent. This work will help American businesses access Africa’s fast-growing markets and create thousands of jobs for both African and American workers.” – Samantha Power explained.
The United States will use U.S. pension funds to increase high-yield return-generating investment in Africa. Samantha Power quoted Angela Miller-May, chief investment officer of the Chicago Teachers’ Pension Fund: “Before my first delegation... my understanding of Africa was based on what I had seen on TV or read in the news, and I perceived Africa as a place of risk. But all of those perceptions quickly went out the door: I saw that Africa was filled with opportunities. The discussions [I had]...shortened the distance between the U.S. and Africa for me.”
After her trips in Africa, Angela made a $20-million investment in African companies involved in healthcare, education, technology, and other vital sectors of the economy. It is in this selfsame spirit that Prosper Africa, through its Build Together Campaign, will continue to “shorten the distance” between U.S. investors and African businesses.
A new trade and investment strategy – beneficial to both sides – will be implemented in accordance with American values rooted in mutual respect, national sovereignty, democratic governance, and individual dignity. “Less aid, more trade!”
Source: Africa Media Hub
The U.S. Department of State’s Johannesburg Media Hub hosted Special Assistant to the President and Senior Director for Africa at the National Security Council Dana L. Banks for a digital press briefing on how the U.S. government is working to increase U.S.-Africa trade and investment through Prosper Africa. In the meantime, the virtual U.S.- Africa Business Summit was also held in late July.
Africa must address some pressing issues.
Dana Banks reiterated how committed the Biden-Harris administration is to rebuilding partnerships with countries all over the world. The United States renews its readiness to partner with African nations as well as with African civil society and African youth. However, in order for the vision for Africa to be achieved, many issues have to be addressed: violent extremism, climate change, undue foreign influence, conflicts and humanitarian crisis. Resolving such pressing problems is a key condition to a fast-growing Africa, and the United States will support the continent in the process.
Prosper Africa Build Together Campaign
During last week’s U.S. – Africa Business Summit, the U.S. administration kicked off the Prosper Africa Build Together Campaign with a requested additional funding of 80 million dollars. The aim of the campaign is to “substantially increase two-way trade and investment between the United States and Africa by connecting U.S. and African businesses and investors with tangible deal opportunities.”
Prosper Africa will identify new opportunities for U.S. and Africa businesses to increase trade and investment as drivers of economic growth and job creations. Focus will be given to identified key sectors and the green economy.
In practical terms, the U.S. Development Finance Corporation (DFC) has engaged a total of two million dollars and another half million in financing Africa-based projects this year. The Millennium Challenge Corporation has agreed to support the energy sector in the West Africa region. Other agencies among the 17, including the USAID, the Department of Commerce, the U.S. Trade and Development Agency (USTDA) have facilitated other agreements towards key economic sectors such as healthcare, agriculture, and power. If the funding of 80 million dollars is approved by the Congress, it is expected to support, for example, infrastructure building and matchmaking for businesses and American investors. The Build Together Campaign will also help small businesses run by the African diaspora across the United States.
A continuation to AGOA?
When asked about the upcoming expiration of the African Growth Opportunity Act (AGOA) in 2025, Dana Banks explained that the sunsetting of AGOA is not necessarily a bad thing. AGOA has been more beneficial to some countries than to others. The United States will look at a mutually beneficial trade relationship both with individual countries and the African continent as a bloc. That is why the U.S. administration is seeking to engage more in the African Continental Free Trade Area (AfCFTA). Even though discussions with the U.S. Trade Representative’s office are being held, no conclusion can be drawn regarding another round of AGOA coming up.
Nevertheless, Prosper Africa, through USAID and other agencies, will continue to provide the necessary advising services for local businesses in terms of U.S. market access. Africa and its products are “à la mode” and there is a great potential for smaller businesses – including woman-led businesses – to explore the U.S. market if they are provided the appropriate information and support.
As a reminder, Prosper Africa is an initiative launched by former president Donald Trump back in 2018. The Biden-Harris administration is seeking to “re-imagine” and revive the initiative then considered “the centerpiece of U.S. economic and commercial engagement with Africa”.
Source: U.S. Department of State / Agoa.info
Understanding cultural differences and integrating them into strategic business operations should be taken very seriously. Cultural mistakes have been the cause of many business failures around the world.
A few examples of business failures
Back in 1992, Walt Disney planned to replicate the success of Disneyland in the U.S. and in Japan in Europe by launching a pilot project in Paris, France. The giant entertainment company attempted to explain its struggle as the impact of the recession in Europe in the early 1990’s. In reality, first, the French government and intellectuals have developed a certain contempt for Americanism after the World War II. A series of other issues explain that failure. Alcohol ban in the park sounded absurd to French people who are used to enjoying wine at lunch time. French people were not used to takeaways and their staffs have not been trained enough to understand the eating habits and the daily habits of French people in general. Later, to address the situation, a French citizen has been appointed as director and the new team adjusted the company’s human resources management and policies. Up until today, Disneyland in Paris is one of the most appreciated attractions in Europe.
Another example of cultural mistake would be that of the American famous coffee chain Starbucks in Tel Aviv. In 2002, an Israeli company opened a first Starbucks coffee shop and planned to open 20 more within one year. That never happened. A well-developed coffee culture is rooted in the Israeli society. They enjoy gathering and enjoying either a cappuccino or an espresso, needless of a long list of options in the Starbucks menu considered too complicated. The market being too small for Starbucks, the franchise has failed to come back to Israel until recently. All hope is not gone. Even though no coffee shop has been opened, a pop-up store distributing free samples to customers operated last April and May. A story to be continued!
Let us stay in Israel. The giant KFC made a tremendous mistake when they ignored how Israelis – the majority of whom are Jews – follow religiously kosher laws. Besides, in a country where chicken is considered a staple food for most households, a customer needed a viable reason enough to visit and buy at KFC. As of 2021, KFC is present in five locations in Israel after a series of “come-and-go” since the 1980’s.
More giant American multinational corporations have failed due to cross-cultural mistakes. Starbucks failed in Australia; so did Walmart in Germany. That is why cultural awareness must be taken seriously when embarking on an international effort. A preliminary in-depth assessment of the uniqueness of national cultures should be carried out, covering aspects like environment, legislation, local values and traditions, the population’s lifestyle and daily habits, just to name a few.
2020’s shoppers would not buy a product only because it is affordable and beautifully designed. They buy it based on the story the product is telling, a story they can relate to or a story in line with their values and convictions. Multinational companies should never underestimate cultural considerations, especially when targeting markets with strong cultural identities.
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This website was funded by a grant from the United States Department of State. The opinions, findings and conclusions stated herein are those of the author(s) and do not necessarily reflect those of the United States Department of State.
