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P.O. Box 32454
Charlotte NC 28232
USA
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In Africa, the lack of a supportive environment for business
has delayed the harnessing of the power of entrepreneurs
as catalysts for economic and social development and the
protection of the environment. The result has been tragic,
with millions of people trapped in perpetual states of poverty
despite billions of dollars in official development aid. Now is
the time to leverage philanthropy for investments that will
have an immediate impact on the lives of people and result
in sustainable economic and social development.
33
A New Day
“Economic policies should focus on cultivating a critical mass of businesspeople that can supply the larger African market and even the rest of the world. A sound economic policy will lead to an expanded tax base, which is far more sustainable than reliance on foreign aid. Rural populations need to be exposed to “business thinking” in order for them to establish long-term plans of engaging in efficient, agricultural practices and engaging in value addition to their products. …The resource-rich Africa urgently needs to establish hubs of economic activity in all of its regions to help move the continent’s economy away from an excessive reliance on aid and the export of raw materials.”
- Harvard Business Review Vol. 28 (4) - Winter 2007 Issue
There is a new awareness in the philanthropic community that AID and charity that does not create a regenerative process of growth and development is not sustainable, and does not help in the development of civil society or free people from the trap of poverty.
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The Big Idea
In 1961, the Peace Corps launched a movement to “promote world peace
and friendship.”
In 1990, Teach for America launched a movement so that “one day all children
in this nation will have the opportunity to attain an excellent education.”
In 2010, NeXus Global Serve is launching a movement “to unleash
transformative entrepreneurship in Africa”
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Our Goal
Our goal at NeXus Global Serve (NGS) is to build a critical mass of young
entrepreneurs and new business ventures in each Southern African
Development Community (SADC ) country to drive the 15 member economies
past the growth and developing tipping points beyond which they become
durable and self-sustaining.
We believe developing and deploying an army of high-impact change agents
(entrepreneurs) and a broad range of growth engines (new business ventures)
presents the best opportunity to double the middle class and lower poverty by
half in the SADC region in the next ten years.
To build a veritable war-chest of financial and intellectual capital to support this
effort, NeXus Global Serve is mobilizing charity organizations, leading
universities, philanthropists, businesses and venture capitalists to join forces to
establish self-sustaining NeXus Opportunity Funds (NOF) and cutting edge
Entrepreneurial Training and Business Incubation programs (ETBIs) for the
SADC region.
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Focus Area: SADC Region
Covering an area of 9,882,959 sq km
and15 countries with a combined
population of 230 million people and a
GDP of US$ 374.2 billion (2006), the
region is one of the poorest in the world.
Despite being richly endowed with
natural resources, approximately 45%
of the total population live on 1 US$ per
day.
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Create the NeXus Global Institute (NGI) that will provide
comprehensive Entrepreneurial Training and Business Incubation
programs (ETBIs) to young entrepreneurs and connect them with
cutting-edge business creation and finance platforms beyond micro
finance to create enterprises that are development drivers in their
communities.
NGI
Transform traditional charity into sustainable “teach-them-to-fish”
philanthropy by turning charitable giving into NeXus Opportunity
Funds (NOFs) that will invest in people and projects that create jobs
and generate sustainable change. NOFs will also combine new
business creation with short-term trade finance projects to enable
charities to maximize returns in order to extend philanthropic impact.
NOF
What we will do
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Where we will begin
The first ETBI will serve 120 young
entrepreneurs from Namibia,
Botswana and Zimbabwe. Program
participants will be housed at the
Midlands State University (MSU) in
Gweru, Zimbabwe. The MSU is
located in the heart of the SADC and
will house the NeXus Global
Institute (NGI) which will coordinate
ETBI‟s for the region. The NGI will
also house an Entrepreneurship and
Business Incubation Library and
Research Center.
The City of Gweru, location of the
Midlands State University
Gweru
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The Curriculum
The ETBI Business and Entrepreneurship Curriculum will have 6 major goals:
1. Knowledge of the history and importance of entrepreneurship
2. Understanding of the ethical challenges and concerns that face entrepreneurs.
3. Knowledge of entrepreneurial principles and processes
4. Understanding of entrepreneurship in the global marketplace.
5. Skills in applying techniques of financial management.
6. Moving beyond micro finance and exploiting emerging markets comparative
advantage
Summer Module with PescaU
A summer module will facilitate knowledge exchange between ETBI participants and PescaU
students and faculty in the PescaU program (www.pescau.org) and their faculty. ETBI students
will gain knowledge of best practices in entrepreneurship from faculty experts, benefit from
consulting and research done by PescaU student teams, grow business networks within their
communities, develop understanding and respect of other cultures, and receive a report with
research and analysis done specifically for their businesses as they prepare to present
business proposals to the NeXus Opportunity Fund.
1010
Workshops with PescaU
The ETBI Summer Module will include workshops in the following areas:
• The importance and process of business planning
• Strategic Planning: Mission, Goals, Objectives, SWOT Analysis, Gap
Analysis
• Knowing and serving customers: Market definition, pricing,
segmentation, targeting, positioning
• Operations and Expansion, including Quality Management,
Innovation, Sustainability, Horizontal and Vertical Integration,
and Supply Chains
• Financial Statements and Planning: Investing vs. Spending, Opportunity
Cost, Cost/Benefit Analysis, Proft vs. Cash, Debt, Forecasting Cash
and Profit, Records and Reporting.
The Summer module and workshops will equip participants to present
business proposals to the NeXus Opportunity Fund.
1111
The NeXus Opportunity Funds
In addition to providing access to capital for young entrepreneurs in the ETBI
program, the Opportunity Funds are vehicles for corporations, churches,
foundations and individuals to invest in viable business projects that sustain
philanthropic impact while creating jobs and driving development. The funds will be
managed by Kalahari Capital Partners (KCP), a consultancy and investment firm
run by former Wachovia Corporate & Investment Bank and McKinsey executives.
KCP offers expert guidance on business development opportunities in Africa. It is
the creator of the African Business Development Network (ABDN) which invests
capital in compelling, short-term trade finance investment opportunities brought to
the consultancy by African businesses within its network.
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Philanthropic Capitalism
• Seeks to develop Southern African
economies and achieve outsized returns
by doing so.
• Indigenization and local empowerment are
core values.
• Global extension of next generation
philanthropic strategy.
• Identifies opportunities for viable business
investment to sustain philanthropic impact while
creating jobs and opportunities.
NGI
NOF
Entrepreneur Talent Identification
& Access To Capital
Resources For SADC Economic Renaissance
1313
Summary
NGS will combine
•intimate local knowledge and networking with
•targeted training in entrepreneurship and business with
•access to capital for small businesses identified through this
knowledge, networking and trainingNGS will be focused on creating
•critical mass so that targeted communities and regions are
economically transformed
•systemic change in the legal and infrastructure attributes of
targeted communities and regions
• ignite entrepreneurial potential within the targeted communities
and region.NGS will
•begin with communities in the SADC region in Africa, growing in
time to saturate that region
• expand over time into other regional economic groups in Africa
with targeted socio-economic, legal and infrastructure attributes,
growing in time to saturate those regions.
1414
The Team
Noah Manyika:
Founder: NeXus Global Serve.
Noah Manyika is a Fulbright Scholar and
graduate of Georgetown University‟s
School of Foreign Service. A former
student of Secretary of State Madeleine
Albright „s, he was described by William
Fulbright biographer Dr. Seth Tillman as
“one of the very best students” he had ever
taught and as “the most impressive
student from Africa we have ever had in
our program”. Noah‟s oral examinations
performance was described by Dean Peter
Krogh and fellow panelist John Finney of
the New York Times as a “tour de force” .
Selected by the faculty and his classmates
to represent the class of 1987 at the
concluding honors convocation in May
1987, he gave a speech which was
described as a “masterful demonstration of
substance, graciousness and humor “ by
Dr. Alan Goodman, former Executive Dean
of the School of Foreign Service and
current president and CEO of the
International Institute of Education.
A three-year stay as a young student
behind the “Iron Curtain” in Nicolae
Ceausescu‟s Romania in the early eighties
gave Noah a passion to fight against the
limiting of human potential . He has
committed his life to building compelling
communities of hope and opportunity for
all. He was the founder of the Charlotte
Children‟s Scholarship Fund
www.csfcharlotte.org, principal visionary
for Brookstone School
www.brookstoneschools.org and the
Charlotte Empowerment Zone
www.nexusnews.org. His initiatives on
behalf of at-risk children in the Charlotte
area have won the support of current
Mayor Anthony Foxx, former Mayor Pat
McCrory and global stars such as
Will.I.Am of the Black Eyed Peas and
former World Heavyweight Champion
Evander Holyfield
Noah is also a partner in Kalahari Capital
Partners (KCP), an investment platform
combining new business creation with
short-term trade finance projects in
emerging markets. In partnership with
NeXus Global Serve, KCP joins
philanthropy with capitalism, combining
philosophies too often characterized as
foes, into a single force to effect immediate
and durable change while supporting the
development of African economies and
achieving outsized returns by doing so,
with the development of local
entrepreneurs and business incubation
for economic growth and development as
core values
Noah serves on the Board of Visitors of
Queens University in Charlotte NC and on
the boards of the United World Missions
which has workers in over 30 countries,
Harvests of Hope and the Midlands State
University of Gweru Zimbabwe. He is a
member of the Affordable Living Cabinet
of Charlotte , North Carolina.
Dennis Matangira: Founder/CEO
Kalahari Capital Partners (KCP).
Dennis is founder and CEO of Kalahari
Capital Partners, an investment platform
combining new business creation with
short-term trade finance projects in
emerging markets. Dennis is an
experienced investment banker who
quarter-backed one of the largest deals
ever executed by Wachovia Bank, the $33
billion LBO of HCA Hospitals (by KKR, Bain,
etc) in December 2006 and the $10 billion
corporate takeover of Triad Hospitals by
Community Hospitals Inc in July 2007. He
was key member of the team that saw the
Wachovia Leverage Finance platform grow to
be national a powerhouse with top 3 ranking
after JPMorgan Chase and Bank of America.
He was a Senior member of the Distressed
Valuation & Trading team that drove
execution of approximately 100 trades with a
face value of approximately $1.1 billion per
year from 2001-2004.
Dennis began his career with
PricewaterhouseCoopers (Zimbabwe) and
was part of the initial groups of natives to
work for Accounting Firms after Zimbabwe's
independence. He later founded Dennis
Wilson Consulting . The platform advised
multinationals on investment opportunities in
Southern Africa, and specialized in
transactions principally funded through
international agencies (IMF, European Bank
for Reconstruction and Development and the
Arica Development Bank) that sought to
support business growth/expansion between
Europe and Southern Africa and to increase
participation of minorities in business
ownership through the IMF‟s Structural
Rehabilitation Programs.
Dennis was also the founding Director,
Global Healthcare Service Solutions .
GHSS was formed during the height of
nursing shortage in the USA in early 2000.
The idea was to develop a global company
that trained healthcare personnel in
developing countries in partnership with large
USA Healthcare systems (California and DC
were pilots) using USA curriculum and
certification. This benefited the USA by
providing a steady stream of nursing
personnel. It benefited host country by (i)
providing post secondary training for their
citizens, (ii) providing in country trained
personnel for local hospitals, (iii) serve as a
major source of foreign currency from
personal family support driven repatriation and
, (iv) structure tax treaties that would allow the
US based citizens to pay some of their taxes
in the host countries thus creating a revenue
stream for the government.
Dennis is also a Founding Director, of the
MCD Foundation www.mcdforphans.org . The
Foundation provides structural support to
AIDS orphans and widows in rural
communities of Zimbabwe. Efforts currently
cover leadership seminars for 300-500 rural
community and civic leaders, 18 village
schools with about 500 kids each, sinking of
clean water boreholes to reduce waterborne
disease and t o support irrigation projects,
teaching locals modern gardening and
irrigation methods to move them beyond
subsistence farming, rural electrification to
bring commerce to the remote villages.
Dennis holds an MBA from Wake Forest
University and studied for B Compt. With the
University of South Africa).
1515
The Team
William Clyde is founder and Executive
Director of PescaU, a non-profit NGO
created to help small businesses in
underdeveloped parts of the world gain
business knowledge that will increase their
likelihood of success so that they will gain
financial independence and contribute to
the development of their local economies.
PescaU‟s sole activity is the offering of
courses in sustainable business and
entrepreneurship, targeted at people with
little or no formal business training. Each
course serves two audiences simultaneously:
promising students, typically 16-24 in the
US or other developed countries interested
in gaining experiential business knowledge,
and current or aspiring micro-business
owners in underdeveloped parts of the world.
At the heart of every PescaU course is a
10-14 day visit in which students attend
“mini-MBA” workshops and work with
microbusiness owners to better understand
their businesses. In preparation for that
visit, students participate in class meetings
and online learning designed specifically for
the visit and led by faculty experts in both
entrepreneurship and the community being
visited. In each community, PESCA works
with a local partner responsible for
facilitating relationships, managing onsite
logistics, and supporting a business
incubator to ensure that the benefits to
participating micro-businesses are
sustained.
William Clyde is currently Vice President
for Academic Affairs at Queens University
of Charlotte, and will assume the position
of Executive Vice President and Provost of
Manhattan College in New York City on
July 1, 2010. Bill holds a BA in Chemistry
and Economics from DePauw University,
an MS in Chemistry from NYU, and a PhD
in Economics from Edinburgh University
in Scotland, and has traveled very
extensively for studies, business, pleasure,
and leading courses. He began his career
as a currency trader and creator of 24-hour
dealing desks at Harris Bank and then First
Chicago, building relationships with scores
of leading organizations around the world,
ranging from McDonalds to UBS to Tudor
Investment Corporation to the Federal Reserve
Bank of New York and the Bank of China.
Bill began his academic career at Quinnipiac
University where, after being awarded tenure
as a full professor of finance, he assumed a
variety of administrative roles, including two
deanships, before being named Associate Vice
President for Academic Affairs. As a faculty
member and administrator, Bill led Quinnipiac‟s
strategy to enhance learning with technology,
resulting in Quinnipiac achieving ranking on
Yahoo Magazine‟s “100 Most Wired
Universities” list. As a result of his efforts, Bill
was also asked to co-author the book Using
Technology in Teaching, published by Yale
Press in 2005.
While at Quinnipiac, Bill led several study
abroad courses, in which students worked with
local businesses to expand business
knowledge, both for themselves and for the
businesses. The most recent of these trips
was to Leon, Nicaragua, where students
worked with microbusinesses in a course very
similar to that described above for PescaU
courses. In addition to working with NeXus
Global Serve in Zimbabwe and the SADC
region of Africa, PescaU offers courses to
Nicaragua and Central America.1616
The Team
Dr. William Clyde
Anthony Howe: President,
Kalahari Capital Partners (KCP).
Anthony is President of Kalahari
Capital Partners, an investment platform
combining new business creation with
short-term trade finance projects in
emerging markets. Anthony is an
experienced management consultant and
corporate development professional.
Anthony began his career as a technology
consultant for Andersen Consulting where
he designed , implemented and maintained
complex information systems for Fortune 500
companies. Clients include leading firms in
the insurance and energy sectors. In
addition to project management, Anthony‟s
technical expertise include client-server
architectures and expert systems
Following his MBA, Anthony returned to
consulting, this working as an operations
improvement consultant for A.T . Kearney.
He is considered an expert in production
synchronization, modifying scheduling and
material flows processes for automotive and
aerospace clients in order to reduce
inventories and capital requirements.
Mr. Howe was recruited to McKinsey &
Company where his focus broadened from
operations improvement to corporate
strategy, M&A and business development.
He has helped clients in financial services
and the energy industries develop strategic
alternatives for slowing portfolio companies
and, on the other side of the M&A process,
merged operations from multi-billion
companies in order to achieve aggressive
savings targets.
Mr. Howe left McKinsey & Company to join a
firm client, Inmar, a provider of payment,
transaction processing and reverse logistics
solutions to large supply chains. Reporting to
Inmar‟s Founder and Chief Executive Officer,
Anthony is credited with helping develop
and execute a growth strategy that tripled
cash flow and more than doubled revenues.
Anthony was directly responsible for all
organic growth initiatives and assisted the
CFO on acquisitions.
Following the successful sale of Inmar to a
private equity firm, Anthony left Inmar to join
Wachovia as the lead strategist for its
Treasury Services division. He led the
strategy team that converted a slow-growth,
geographically organized large corporate
segment into fast growing portfolio of industry-
centric business teams. Mr. Howe was
recruited to Wachovia‟s new Enterprise
Marketing Division by the Chief Marketing
Officer where he was responsible for
cross-LOB growth initiatives and
competitor analyses.
Anthony holds an MBA with Honors from
Northwestern University‟s Kellogg
Graduate School of Management and a
Bachelor of Science in Applied
Mathematics from University of California
at Los Angeles.
1717
The Team
18
Contact information
Dr. Noah Manyika: President
Cell: 704 907 9405
Office: 704 375 0635
e-mail:[email protected]
Blogsite:www.noahmanyika.org
P.O. Box 32454
Charlotte NC 28232
1919
Appendix – Why Africa? Why SADC?
20
What‟s driving Africa‟s growth
Africa‟s long-term growth will increasingly reflect interrelated social and demographic changes
creating new domestic engines of growth. Key among these will be urbanization, an expanding labor
force, and the rise of the middle-class African consumer. In 1980, just 28 percent of Africans lived in
cities. Today, 40 percent of the continent‟s one billion people do—a proportion roughly comparable to
China‟s and larger than India‟s. By 2030, that share is projected to rise to 50 percent, and Africa‟s
top 18 cities will have a combined spending power of $1.3 trillion….
Africa‟s economic pulse has quickened the continent with a new commercial vibrancy. Real GDP
rose by 4.9 percent a year from 2000 through 2008, more than twice its pace in the 1980s and ‟90s.
Telecommunications, banking, and retailing are flourishing. Construction is booming. Private-
investment inflows are surging….
Excepts from McKinsey June 2010 Quarterly
After declining through the 1980s and 1990s, the continent‟s productivity started growing again in
2000, averaging 2.7 percent since that year. These productivity gains occurred across countries and
sectors. This growth acceleration has started to improve conditions for Africa‟s people by reducing
the poverty rate. But several measures of health and education have not improved as fast. To lift
living standards more broadly, the continent must sustain or increase its recent pace of economic
growth.
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excepts continued…
If recent trends continue, Africa will play an increasingly important role in the global economy. By
2040, it will be home to one in five of the planet‟s young people, and the size of its labor force will top
China‟s. Africa has almost 60 percent of the world‟s uncultivated arable land and a large share of the
natural resources. Its consumer-facing sectors are growing two to three times faster than those in
the OECD7 countries. And the rate of return on foreign investment is higher in Africa than in any
other developing region. Global executives and investors cannot afford to ignore this. A strategy for
Africa must be part of their long term planning. The time for businesses to act on those plans is now.
Companies already operating in Africa should consider expanding. For others still on the sidelines,
early entry into emerging economies provides opportunities to create markets, establish brands,
shape industry structures, influence customer preferences, and establish long-term relationships.
Business can help build the Africa of the future. And working together, business, governments, and
civil society can confront the continent‟s many challenges and lift the living standards of its people.
22
Economic Potential of Regional Economic
Communities in Africa: Spotlight SADC
The Western consumer markets will no longer be the growth engine for the global economy, says Dominick Strauss-Kahn,
President of the International Monetary Fund (IMF). There are obvious alternative markets developing like India and China.
However, Africa‟s consumer markets are also developing. Africa has a population of close to 900 million. By 2050, it will
have a population exceeding two billion, overtaking India and China as their population growth slows.
To date, however, the purchasing power of the African consumer markets has been fragmented, resulting in many small
consumer markets instead. There is also only a small amount of intra-Africa trade occurring. Intra-Africa trade accounts for
less than 15% of cross-border trade in Africa and less than 10% of the GDP produced. The situation is transforming though.
European countries had a similar problem with small markets, so to improve their economic strength the European Union
was born. Africa is going through a similar process with several regional economic communities (RECs), e.g., Economic
Community of West African States (ECOWAS) and Economic Community of Central African States (ECCAS). As these
RECs develop, the goal is to form them as one economic community under the African Union.
The goal is to allow companies to move products and people as easily across borders within an REC as within a country. So,
foreign businesses and investors can look for opportunities that not only export from Africa, but those serving local markets
which can expand to other countries within an REC and on to the entire continent. For example, a business positioned in an
East Africa market like Kenya will now have access to a common market of 120 million potential consumers in the East
African Community (EAC).
About the author: Lauri Elliott is a strategist and facilitator in international business; Special focus on Africa; Founder of AfribizPublished: February28, 2010
23
Southern African Development Community
The Southern African Development Community (SADC) is currently one of the strongest RECs in terms of economic strength
by country GDP. SADC member countries include Angola, Botswana, Democratic Republic of Congo, Lesotho, Madagascar
(suspended), Malawi, Mozambique, Mauritius, Namibia, Seychelles, Swaziland, Tanzania, Zambia and Zimbabwe.
SADC represents a population of over 230 million people. The economies of the member states are diverse from oil-rich
Angola, natural resource diverse Democratic Republic of Congo, and sector diverse South Africa.
According to the Regional Economic Outlook for Sub-Saharan Africa (October 2009) by the IMF, SADC‟s real GDP growth
was 5.1% in 2008. It projects real GDP growth will be -0.9% in 2009 and 3.4% in 2010.
In September 2009, SADC issued a report on the impact of the crisis. SADC was hit harder than other regions like the EAC
because it negatively affected three different types of economies. First, the global recession hit South Africa because it was
most tightly integrated with the global financial system. Second, it hit oil producing countries like Angola. And third, it hit
commodity producing countries like Botswana.
During this period, SADC member states are experiencing a decline in inflation catalyzed by easing oil prices and increased
food supply. Since June 2009, capital markets in Botswana, Mauritius, Namibia, South Africa and Zambia have
improved. On the downside, current accounts and fiscal matters remain under pressure while household savings have
dwindled in the SADC region.
The region is expected to rebound well as the global recovery gains momentum. Recovery in commodity prices is helping
currently. Looking forward, 2010 hails as a year of new opportunities for SADC. First, SADC is expected to finalize its
customs union (SACU). Secondly, the tri-partite agreement between COMESA, EAC, and SADC to open markets across the
RECs is gaining steam. As this develops, it will create a common trade area with over 500 million people
24
Economic Growth for SADC Countries through 2012 (2010 Global Economic Prospects 2010)
Country 2009 GDP% 2010 GDP% 2011 GDP% 2012 GDP%
Angola 0.2 9.2 8.4 5.4
Botswana -10.3 4.1 8.5 13.9
Congo, Democratic Republic of 2.7 5.4 7.2 6.9
Lesotho -1.0 3.1 4.8 4.8
Madagascar -0.4 0.9 2.9 5.2
Malawi 5.9 4.6 3.2 3.2
Mauritius 2.1 2.0 4.7 4.2
Mozambique 4.3 5.2 6.0 6.2
Namibia -0.7 1.7 2.2 2.7
Seychelles -8.7 4.0 5.1 5.0
South Africa -2.2 1.7 3.8 4.3
Swaziland 0.4 2.6 3.1 2.6
Tanzania 5.0 5.6 6.7 7.5
Zambia 4.5 5.0 5.5 6.0
Zimbabwe 3.7 6.0 6.0 6.0
