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How Manu Chandaria Mastered the African Market

January 30, 2013 / 32:26

This episode features Dr. Manu Chandaria discussing Africa's business opportunities, investment potential, and the role of entrepreneurship. Key topics include the impact of foreign investment, the importance of local management, and the need for social responsibility in business.

Dr. Chandaria highlights the growing interest in Africa from countries like China and India, noting that six of the top ten investment destinations are in Africa, including Nigeria and Kenya. He emphasizes the importance of understanding local markets and the unique challenges of doing business in Africa.

He shares insights on sectors ripe for investment, particularly housing and infrastructure, and compares managing businesses in Africa to experiences in other regions like India and the US. He stresses the need for local management to ensure sustainable growth.

Dr. Chandaria also addresses the importance of corporate social responsibility, advocating for businesses to invest in education and health to benefit local communities. He reflects on the challenges faced in Africa's history and the necessity for entrepreneurship to drive economic growth.

In closing, he encourages Africans to take ownership of their destinies, emphasizing that success requires determination, risk-taking, and active involvement in creating opportunities.

TL;DR

Dr. Manu Chandaria discusses Africa's investment potential, entrepreneurship, and the importance of local management and social responsibility in business.

Episode

32:26
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[Music]
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[Music]
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Dr Manu shandera so nice to have you
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here at the wton school thank you it's a
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pleasure so there is a lot of talk right
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now about Africa and uh all the ripe
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opportunities on the continent and I
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wanted to ask you uh as one of Africa's
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foremost Business Leaders how does the
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rest of the world participate in
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Africa's growth today well right now I
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think that the people who really want to
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make a difference and want to really
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make
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imprints they are going to Africa
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without asking specifically the
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China and after looking at China the
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India the Asia the
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Indonesians even the
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Koreans they're all coming very fast and
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they want to make an impression there uh
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the question is that Africa is growing
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at least this out of the
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10 topmost
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investment destination today six of them
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are in Africa this e Eastern Africa it's
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Kenya it's Angola it's South Africa it's
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Nigeria and in Tunisia uh and there are
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many more so I think that there is a
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huge potential right now that
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everybody's rushing because I think
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Africa is now providing a stable
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political climate ever before and number
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two that almost all the developing
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developed countries are now finding it
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extremely difficult in growth now Africa
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is going to grow probably at
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6% for coming years now yeah I think you
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mentioned a number of very interesting
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in points in your answer I want to
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really uh take one of them I mean if you
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were going to start on the continent
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today which sectors or which country
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would you look at
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first if I got an appetite which is big
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enough I'll go to Nigeria is 140 thou
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140 million people number one number two
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it also supports suring surrounding
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countries which are another 50 million
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so that is almost a quarter of Africa
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that area so I I'd go if I got that
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capacity to really handle that if my
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capacity is small then I'll going to
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East Africa because again East Africa is
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180 million people from Kenya Uganda uh
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Tanzania Burundi Rwanda and now we're
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expecting southern Sudan to join that's
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very good but Are there specific sectors
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that you would look at as you went to
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those countries well uh our sectors
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which we are now doing is the house
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housing and shelter and I think that
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that is ever growing I don't think that
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we will change that for anything else
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right now uh we are not very very sure
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that whether we will go into Electronics
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or software or telephony because that's
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not our speciality our speciality over
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the last uh 70 years or 80 years has
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been built on aluminium and steel and I
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think that there is a great need for
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both of them yeah but let me ask you
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another question so you I think you have
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had the benefit of building a major uh
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conglomerate Out of Africa and having
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invested in other parts of the world in
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India in China in the US in Europe how
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would you compare managing your
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Investments outside of africas to the
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one in Africa because sometime people
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say yes but Africa is tough to do
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business I think you have the
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perspective of being able to compare the
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two what can you tell us no I I think
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the managing businesses in Africa for us
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because we've been there for so many
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years we understand how it how it
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manages and how to manage it uh we find
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that uh specifically in in the last 10
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years because of the downturn in economy
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both United States Canada and Europe uh
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we are finding it that managing
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businesses there are more difficult than
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ever before I think the managing
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businesses in India is very competitive
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to us we are Indians but we still cannot
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manage a very strong and a Sound
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business in India because it's very
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competitive uh to me also managing
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businesses in Australia New Zealand
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China it's easy because they are very
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focused on certain areas as it's
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easier but to me because most of us came
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from Africa and we can understand the
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pulse of Africa to us it's quite easy
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to very good very good but you mentioned
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understanding the pulse of Africa can
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you tell us more about the type of
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mindsets it takes to succeed in business
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in Africa uh first you got to accept
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that it's a third world country it's not
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a first world country if you are
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thinking about the Comforts of the first
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world country it's not there but if you
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want to make sure that two multiplies by
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two becomes four and four multiplied by
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four becomes 16 then that's the area so
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pulse in Africa means uh there are
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speciality in every country there are 60
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countries in Africa a little more than
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that but each one has got a speciality
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and those speciality if you can really
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capitalize on those specialities I think
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that you're making a great can you give
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us an
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example well as for example let's say
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telephony yes uh recently the um the
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company in Airtel from India decided
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that they want to enter in Africa
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they've been thinking about Last 5 Years
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all of a sudden they came back and say
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all right will buy the whole company 16
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African countries they're now in one go
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that's one uh in telepon and also in
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telecommunication China is getting very
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very fast very fast inside um if you
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take the um computers and uh all those
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products or
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ICT uh I think that uh all the Western
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World Korea and the Japan and at the
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same time the United States Europe
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they're all forerunners there so depends
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upon where you're going and which
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particular part you're going if it's
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textile obviously it's not the cup of te
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for for UK for for Europe or for USA
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it's
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Chinese and China sometimes is wondering
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you know today they Supply about 22% of
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the world government
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world and their Ambitions are to go up
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to 33% the think one country 1.2 million
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people providing 1/3 of the governments
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every third government of the world of 7
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billion people that's that's a huge
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potential and I would like to actually
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come back to that point of China I think
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there has been quite a bit of debate
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around China's involvement in Africa and
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and most of the the undertone that you
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hear is rather negative where people say
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oh yes but you know China is trying to
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replace the West in Africa and we don't
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think it's for the benefit of the
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Africans what do you say to that well
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there are two ways of looking at it I
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think that this that the West had for
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last 10
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years has not really push what is known
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as social amenities they push more
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political
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they supported parties and supported
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government and this while these people
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came along and said first thing they
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will do build a stadium second thing
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they'll do build a road third thing they
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will do build a airport fourth thing
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they will do uh build a uh a a a
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hospital you know these are very much
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near to the hearts of the people it's
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not something which funding the
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government and saying this is your
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budget deficit so I think that it his
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own style of doing things
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and they know that they want so much
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more from Africa specifically all the
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oil that they can have it all the um
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other um copper
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aluminum boide anything that you can
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talk of that that can be done it's
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available in Africa and they got just
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they open up and that's that it's take
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it iron
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or and to me that's one part the second
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part is what they are not doing and
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which is very much necessary for them to
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understand that you cannot take the jobs
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of Africans into
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China you know when something is there
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in the ground we're not touched it it's
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not touching us at all if they come and
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take it out it's well and good but when
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there are thousand Africans employed in
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a plant and then they start competing
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with those products over there and
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closes the plant or
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almost on a on a on a on a on last
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minute closer that is stealing the jobs
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of Africans and that's where what you
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are seeing is negative attitude why
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would China want to do that is it that
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China China's own requirement and
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China's own middle class and ultimately
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they will have a uh lower middle class
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they itself own big market so I think
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that they should always trade and see
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that they do not put the feet on on
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little fits there and then get a bad
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name but otherwise I think that as far
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as nobody was digging iron or in Kenya
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if they dig well and good nobody's
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taking Zin from us if they do it well
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and good because it was not done anyway
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yeah yeah no that's a very interesting
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point let me then ask you about some of
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the funds there are major funds like
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Carly like KKR that that are now coming
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into Africa I was seeing somewhere that
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uh the level of fundraising to invest in
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Africa is at a record high how do search
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investors with a lot of capital coming
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from the west and the rest of the world
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partner with African entrepreneurs what
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would you tell them well I think that
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what they should be doing is that the
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they they should first have a a model
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which will work if it's a workable model
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says for example uh there's an
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agriculture project then it'll work in
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some part of Africa they can put all the
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money that they want that there not a
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problem but at the same time they must
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make very sure that African management
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is not replaced they must cultivate a
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better management capabilities if you
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bring everybody from outside and manage
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your project a time will come that
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you're not trans in the know how yeah so
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ultimately I think that all these big
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projects that are coming through will
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probably be you'll find that there will
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be a level at which the local persons
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and
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local intelligenti here will take over
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yeah I think we've talked about all the
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good things that are happening in Africa
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the opportunities but I think you have
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the benefit of perspective I mean you
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have also lived through some of Africa's
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quote unquote darket moment
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for example ID me in Uganda and some of
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the political crisis what would you tell
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people about managing uncertainty and
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risk in Africa well I would if I would
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be my way of doing is to educate more
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people give them a choice make them to
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understand what is good for them right
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now it is not being done quite a bit of
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people are just being all these examples
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of has left a very bitter test and many
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people in says for example Kenya 50
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years Kenyan still
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feels the whole generation which was
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born which was 20 years old and now 70
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year old at the time when the
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independence came they felt my God is
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going to be different after 70 after
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another 50 years of their life that 70
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nothing has changed to them they're very
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bitter and the younger people because
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they have no jobs they're also very
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bitter so I think that to me the best
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thing is just to this kind
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of if the West is not very careful and
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if West does not put the standards of
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governance together with the standard of
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democracy but standard of governance in
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all field whether it's education whether
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it's government government whether it's
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banking whether it's industry that
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governance must be something which must
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be they must start taking the the
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ownership and I think that's the only
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way we can change we have seen a
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mean Uganda used to be number one in
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East African territories Kenya was a
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colony Uganda was protectorate and
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Tanzania was territory and Uganda
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supported all the deficits of both tya
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and Tanzania where they were there today
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after I me
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gone 50,000 60,000 as nations were
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thrown out he went I don't know how many
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meetings pan had it in in in London in
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other places but only few people came
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back now to start something which was
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already there to destroy them and
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restart again it's a long process and
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that's why still they're
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fumbling and and yet not there but this
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should be I think there is a question
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there which is interesting because you
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mentioned something about the need to
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give jobs and the needs to educate I
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think that the business sector has a
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role to play in it as well uh and so and
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and I mean you started the foundation of
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your family Shand Foundation back in
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1953 long time ago I wanted to ask you
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from your experience what can business
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do to be more reconciled with Society
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well I think that if uh if any business
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who is to remain there they must
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remember that there is a a social
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responsibility uh for last few years we
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are pushing very hard the corporate
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social respons responsibility uh in that
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we feel that every person if you get
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something out of this country in terms
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of profits in terms of development in
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terms of growth must also invest
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something in this and specifically
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Education Health I don't think they can
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they can invest in in building roads but
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education they can touch one one life
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they can touch 10 lives they can touch
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100 lives it's necessary for them each
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one of them to take conscious decision
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that yes they are going to be there they
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will be making profits they will be
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building their uh the the setup at the
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same time they will make very sure that
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people who are working and who are not
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working with them they're benefited and
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I think this is most important part but
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how do we make that happen because I
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think you you have that belief and you
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are known to really walk the talk on
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philanthropy
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but you are only one African business
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leader out of many so how do we make it
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happen well let's see let's take for
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example in Kenya uh it was in 56 when my
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53 when I told my father that please
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let's have Chanda Foundation he looked
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at me I said you're are stupid I said
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what have I done wrong why I'm stupid he
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said you lived too long in United States
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I said I've lived three years in United
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States He said listen we're not for we
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are not
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Rockefellers we big hole over here fill
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it up first but I kept on arguing that
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we need a a focal point where the family
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if you're going to create wealth then we
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must have an understanding that this
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wealth is not going to be wasted away
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it's going to be also be responsible and
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the that wealth will support a projects
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and understanding so n56 says okay fine
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set it up
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now in Last 5 Years we had we created
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safaricom with the largest corporation
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safaricom
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Foundation the other Foundation East
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African breweries second largest
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corporation e African breweries
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Foundation kcb Kenya Commercial Bank
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again that a foundation we are now
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pushing as hard as possible that if you
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have a possibility create a foundation
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so that you have a
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compulsion that x amount of money is
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going to come out of your businesses and
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for profit and that you're going to look
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for Avenues where you can make a
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difference and and this is working now
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but it's very difficult now when you to
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ask me how many local
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Africans local Africans not conglomerate
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of a
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company like e brewi is is majority
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owned by probably still half 50% by
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overseas and 50% by local Kenyans but
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there are many billion years in Africa
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today how many of them are doing it
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that's where we go to crack how can we
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give them some kind of an exposure and
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bring them around and make them feel hey
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man you want something now let's become
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somebody in the society they will
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recognize and this a government play
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play a very important role and other
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foundations like our foundations is
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supporting many many people and come
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come along let's Hold Your Hand we'll
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hold your hand but let's go and do
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something good I think it's that doing
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good it's not that easy because it has
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to come
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both from your heart compassion has to
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come from here it's not just writing
00:18:46
checks and getting involved the minute
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you start getting involved I'm sure that
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you then start finding how life is
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difficult for the
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others as long as you are not under
00:18:58
standing that and you just write the
00:19:00
check and said take it away that's not
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what we like to do we want to see that
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each one of
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them when I called the E breweries
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managing
00:19:11
director at a opening up a clinic he's
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there he understands and
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sees and he finds that this Clinic has
00:19:20
no water how can you run a health clinic
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without water okay we'll put money we'll
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create create buildup tanks now we'll
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create a b hole and the water will be
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available unless you see for yourself
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the difficulties in which the people
00:19:37
live you cannot you cannot understand
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and that's why many of times you find
00:19:43
that come and do the grassroot work the
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minute you do the grassroot work you
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don't have to be convinced you'll be
00:19:51
convinced automatically but one of the
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things that have been uh really really
00:19:56
pushing for and really advoca in for is
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entrepreneurship you are one of uh
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Africa most prized
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entrepreneur you've started businesses
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you've closed some of them uh what can
00:20:09
you tell people that want to be
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entrepreneurs in Africa how do we create
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wealth you mentioned that in your answer
00:20:15
earlier how can they create wealth well
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the first thing is that you
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know first you got to have a fire in the
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belly you want to do do something you
00:20:24
want to become somebody without that
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looking around yes I will I will not no
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it's a risk the first thing is to take a
00:20:35
risk and say yes I am going to go into
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that
00:20:40
water if I don't take that risk then I
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cannot go I cannot be standing on the
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bystander and just look at and say how
00:20:48
do is the water is it cold is it warm is
00:20:52
it hot no you cannot you got to B it and
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many times as I I tell many times youve
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heard me that if you want to go to
00:21:01
heaven you got to die
00:21:04
first and so entrepreneurship is nothing
00:21:07
but taking
00:21:09
risks collecting the risks and failing
00:21:13
if necessary failures always opens up
00:21:16
another
00:21:18
opportunity that is what you should be
00:21:21
able to do it and take it if you don't
00:21:23
have the stomach for it then you can
00:21:25
just be not being able to do it but
00:21:28
there is a possibility there is a
00:21:30
necessity that people must wake up that
00:21:34
there is a necessity for
00:21:36
entrepreneurship to be in anything it's
00:21:37
not only in
00:21:39
business you're running a County Council
00:21:41
how can you run the best you're running
00:21:43
a health clinic how can you learn the
00:21:45
best you know that's entrepreneurship is
00:21:48
in every Endeavor or human endeavor that
00:21:52
you can put an entrepreneurship but the
00:21:55
question is that first is to convince
00:21:58
yourself yourself are you want to do it
00:22:01
or not are you prepared to take the risk
00:22:04
are you prepared to go deep in it yes
00:22:07
answers are yes and you'll fail so
00:22:12
what it's not it's not that important
00:22:14
but the minute you fail you then gain
00:22:17
another experience that opens another
00:22:19
door opportunity so I think that there
00:22:22
is a tremendous necessity for people to
00:22:25
become little bit more
00:22:26
daring and say yes but if you just say
00:22:30
oh but you
00:22:31
know it's not safe but you know you
00:22:35
cannot go out but you know but you know
00:22:37
is not the
00:22:40
answer uh I was I was an
00:22:43
engineer and we started producing so
00:22:45
much of goods we could not sell and so
00:22:48
they asked me that why don't you go and
00:22:49
and start
00:22:50
selling to another country so I went to
00:22:53
Uganda I didn't know how to sell
00:22:56
anything and no Goods over
00:22:58
there but what I did was I carried my
00:23:03
brief I went to every shop who could be
00:23:06
my potential customers who were not
00:23:08
buying very much because there was a
00:23:10
competitor who' given small quantities
00:23:13
my quantities to come in large in a in a
00:23:16
big
00:23:16
truck so I'd go and talk to them and
00:23:21
what I read in the newspaper today is a
00:23:23
problem with this children if there's an
00:23:26
income tax problem what's happening in
00:23:28
the world you know in a year I made each
00:23:32
one of them feel that if I I'm there
00:23:36
I'll be the first one to get the
00:23:38
order the minute it happened I opened up
00:23:41
my God down and my competitor for 32
00:23:46
years came on
00:23:48
running
00:23:51
please because oldest fellows were all
00:23:53
fed up
00:23:54
anyway and the contact the human contact
00:23:59
of
00:23:59
winning was the most important part but
00:24:02
it took me six eight or N9 months to
00:24:04
establish myself to say hey man how are
00:24:08
you what's the problem with you our life
00:24:09
is it and all kinds of things but it
00:24:13
created one to one
00:24:17
contact and
00:24:18
that in by the time when I was ready
00:24:22
they're already so I think that there a
00:24:24
question is that how deep individual
00:24:28
want to build
00:24:30
relationships and World depends on
00:24:32
relationships it's one to one
00:24:34
relationship it's one to one country
00:24:36
relationship one to one continent
00:24:38
relationships if I go to Tanzania I'm
00:24:41
like there if I go to Nigeria I'm like
00:24:44
there because they all Now take me as an
00:24:48
investor investor not only interested in
00:24:51
profits alone but a track record of that
00:24:54
yes I'm also seeing that the population
00:24:58
gets something out of me because I've
00:25:01
taken something from you I'm sewing it
00:25:04
back and that's something which is very
00:25:06
interesting there is actually something
00:25:08
that you said which was very interesting
00:25:10
about the ability to really uh deal with
00:25:13
challenges so I wanted to ask you what
00:25:16
is the biggest leadership challenge you
00:25:18
have faced and then how did you deal
00:25:21
with it what did you learn from it you
00:25:23
know I when I was U when my my elder
00:25:27
brother was was managing the
00:25:29
businesses and he said that no now you
00:25:32
see you start spending some time with
00:25:34
me and every time his idea and my idea
00:25:38
were just
00:25:39
conflict will not will not
00:25:42
meet uh so every time there was an
00:25:46
argument so I asked myself what am I
00:25:50
going to do now am I going to win this
00:25:53
man or am I going to fight this man
00:25:58
and I made up my mind I'm going to win
00:26:01
this
00:26:03
man winning means what he said I did it
00:26:07
the way he said I did it but I did
00:26:10
better than what he would do then start
00:26:14
he all of a sudden started realizing my
00:26:16
God he's doing exactly what I wanted him
00:26:18
to do but even
00:26:20
better that day onwards so you go to
00:26:24
First you will meet this kind of crisis
00:26:26
in life that either you decide that yes
00:26:29
you want to sit in the mold which is
00:26:32
already there be inside then break the
00:26:35
mold but if you don't get inside you
00:26:38
don't break I could have just walked
00:26:40
away and said sorry I don't want to be
00:26:43
with you but no I thought that I want to
00:26:46
win unless and until you got that
00:26:49
capacity of challenges you know you
00:26:50
challenge yourself and say Yes I want to
00:26:53
win let me give a simple example in 2003
00:26:56
when the Kenya became uh the new
00:26:59
government after Mo came in one day they
00:27:02
they called a whole meeting of uh
00:27:04
academias and Nos and private sector and
00:27:07
government and they said one day asked
00:27:09
us why don't we make one umbrella body
00:27:14
of all the association commercial
00:27:18
Association so I laughed at him and he
00:27:20
said why are you laughing I said I'm
00:27:22
laughing simply because each Association
00:27:26
there are 200 each Association of
00:27:29
chairman and board of directors whose
00:27:33
ego is bigger than their shoulder now
00:27:36
how do you expect me to put everybody in
00:27:37
one
00:27:38
go he said no Mr Chand you don't
00:27:41
understand our problem we are new in the
00:27:43
government we don't know which is the
00:27:46
right which is wrong the the the the the
00:27:51
Traders wants a the manufacturers wants
00:27:54
B the transporter wants C the
00:27:56
governments want for how can we manage
00:27:59
this unless we know somewhere where we
00:28:01
can get one advice that this is good for
00:28:04
the country and this is what you will
00:28:06
support so next morning again they
00:28:08
called us and we said look then he said
00:28:12
I challenge you Mr
00:28:14
chandaria so I asked my people are we
00:28:18
prepared to take a challenge and
00:28:20
everybody said if you lead yes so we
00:28:23
created then I made the set the
00:28:25
government to if we make create capsa
00:28:28
Kenya private sector
00:28:30
Alliance then on the other side all the
00:28:34
all the doors of the ministers and pses
00:28:37
must be open for us we must come to your
00:28:40
office and we can
00:28:41
discuss it was done but the point is
00:28:44
that unless the challenges are thrown
00:28:46
unless the challenges are taken you
00:28:49
don't make anything you can talk that
00:28:52
doesn't mean you'll make it talk does
00:28:55
not make everything talk is an isue
00:28:58
necessary but after talk action is
00:29:01
necessary and once we delivered that
00:29:03
then it was okay so so any message you
00:29:08
want to basically leave uh potential
00:29:12
investors Africans and Leaders with as
00:29:16
we close this interview look uh my my
00:29:19
only message to them is very simple
00:29:21
Destiny is in your
00:29:24
hand don't expect somebody else to do it
00:29:27
for you
00:29:29
you say Mr X dies and I go to heaven no
00:29:31
it doesn't work Destiny is in your hand
00:29:35
unless you squarely make very sure you
00:29:38
are going to make it and you are going
00:29:40
to be in it and for it it not going to
00:29:45
happen so to my simple to every African
00:29:48
that comes up
00:29:51
yes it's not
00:29:54
color It's
00:29:56
ability to say I won't do it I must do
00:30:01
it first there is a message to myself
00:30:04
and said I must do it I want to do it
00:30:08
you can do it there's nothing that's
00:30:11
not from 40
00:30:13
people we started in when I came back
00:30:16
from school to 40,000
00:30:18
people you cannot even think of it how
00:30:20
can it be done in in 25 years we were in
00:30:23
25 countries how come it all
00:30:26
doable so there's nothing seent about it
00:30:30
that cannot be done but you must believe
00:30:32
in yourself number
00:30:34
one number two you must take risk number
00:30:39
three you must be in it involved you
00:30:43
don't
00:30:44
involve nothing happens and your own
00:30:48
destiny is in your hand please remember
00:30:51
if anybody else pains for your destiny
00:30:55
that will be
00:30:56
totally nor work so we kept on asking
00:31:00
that somebody else does the Destiny for
00:31:02
Africa no it cannot work the Africans
00:31:06
Must Die for themselves to make sure
00:31:09
what they want to create and the
00:31:11
capacity is there we are sitting on
00:31:15
huge huge huge um um
00:31:19
land water uh minerals you name it
00:31:24
what's not
00:31:26
there but you must have that
00:31:28
determination they want to make it and
00:31:31
that determination is the most difficult
00:31:34
one to make once you make it you cross
00:31:38
the
00:31:39
border Dr Manu shandara thank you very
00:31:42
very much thank you thank you for this
00:31:45
opportunity and I I'll appreciate that
00:31:48
because this is a message which I
00:31:50
certainly would like to see that it's
00:31:52
been distributed spread
00:31:54
out Destiny is with us
00:31:58
and we can make it thank you Asanti
00:32:01
thank you
00:32:05
[Music]

Badges

This episode stands out for the following:

  • 70
    Most inspiring
  • 65
    Best concept / idea
  • 60
    Most quotable
  • 60
    Most influential

Episode Highlights

  • Africa's Growth Potential
    Africa is now one of the top investment destinations, with six of the top ten in the continent.
    “Africa is now providing a stable political climate ever before.”
    @ 01m 37s
    January 30, 2013
  • The Importance of Local Management
    Investors must ensure that African management is not replaced to cultivate better capabilities.
    @ 11m 17s
    January 30, 2013
  • The Role of Business in Society
    Businesses must recognize their social responsibility and invest in education and health.
    @ 14m 54s
    January 30, 2013
  • Destiny is in Your Hands
    A powerful reminder that individuals must take charge of their own futures.
    “Destiny is in your hand, don’t expect somebody else to do it for you.”
    @ 29m 21s
    January 30, 2013
  • The Power of Determination
    Determination is key to overcoming challenges and achieving success.
    “That determination is the most difficult one to make.”
    @ 31m 34s
    January 30, 2013

Episode Quotes

  • Africa is now providing a stable political climate ever before.
    How Manu Chandaria Mastered the African Market
  • Entrepreneurship is nothing but taking risks, collecting the risks and failing if necessary.
    How Manu Chandaria Mastered the African Market
  • Destiny is in your hand, don’t expect somebody else to do it for you.
    How Manu Chandaria Mastered the African Market
  • You must believe in yourself, take risks, and be involved.
    How Manu Chandaria Mastered the African Market

Key Moments

  • Opportunities in Africa01:37
  • Understanding Africa's Pulse05:12
  • Entrepreneurship Mindset20:20
  • Building Relationships24:32
  • Leadership Challenges25:16
  • Taking Risks30:34
  • Destiny and Determination31:28

Words per Minute Over Time

Vibes Breakdown

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