Branches & The Frontier

I’ve spent enough time abroad to be a bit jaded by many of the things that may come as a shock to most travelers: poverty, pollution, different customs, etc.  But this week I saw something that blew my mind, which I have decided to write in (abbreviated) MBA case study format at the bottom of this post (apologies to those who haven’t read cases before).

This week our team split up and visited branches of the bank we will be partnering with.  I was extremely fortunate to go to a branch where the loan officer in charge of SMEs was very enthusiastic about putting me in front of clients and allowing me to ask them questions about their businesses.  Some of these businesses were started by serial entrepreneurs, some by women, some by people who had spent time working abroad, and a few who had worked for a multinational here in Kenya.

The entrepreneurial spirit is alive and well here;  the institutional voids and the cracks in the system that create market inefficiencies are slowly getting filled.

The businesses and industries were myriad, as well as the level of sophistication each businessperson possessed.  A few were as meticulous as anything you might see in the US, but there were also those that obviously would benefit from formalized business training.  The one common denominator was that each entrepreneur was incredibly excited to talk about their business.

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An entrepreneur standing next to one of her products, a solar water heater

And now for the Case (A):

Dave stood behind his desk enjoying a hot cup of African tea while staring out the window of his third-floor office in the busy Westlands neighborhood of Nairobi. Getting used to living in Africa had not been the big adjustment many had envisioned, and Dave found that Kenyans, on the whole, were incredibly friendly and helpful.  As he stared off over the rooftops and bustle of traffic, he noticed a mob of angry shouting Kenyan men moving a pushcart on the street below.  The mob was nearly 50 people, and Dave’s first reaction was that it was probably religious. Curious, he parted the blinds to get a better look, and noticed a naked full-grown Kenyan man huddled in the pushcart who had the expression of a man who would rather have been anywhere else in the world at that particular moment.

Stunned, he looked around the office to see if anyone else had seen this.  No one had.  He wondered whether he should run out to ask what this was about, call the police, or tell a co-worker what he just saw.  Clearly, a decision would need to be made.  Preferably sooner than later.  Dave set his cup of tea down and headed for the door.

Case (B) 

Dave managed to find a co-worker and told him what had just taken place.  The co-worker responded with a chuckle, “Probably a thief,” and walked away.  Text messages were sent to other locals to see if they might shed some light on the matter, and their responses boiled down to: the man probably was a thief; observe, but stay away; these incidents sometimes don’t end well; hopefully the police would intervene before this public shaming went any further.

A call to the police was likely to take hours, not minutes, for officers to arrive, if at all.

I shudder to imagine what happened to the man.  At best, more humiliation.  At worst…

Frontier justice is apparently not terribly uncommon along the frontier.

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Sam, my colleague and UNC (KF) alum, at Kenyatta airport the morning of the fire

Finally, I mentioned that one of my colleagues happened to be trying to travel the day of the airport fire, and he was kind enough to allow me to re-post his photo here. This was before 7am, after being forcibly de-planed mere minutes before scheduled takeoff.

Launch

Finally!

After three weeks of waiting for a stable internet connection, this blog is finally live.  First, thanks for caring enough to visit. This blog will serve as my outlet to the world for the next 12 or so months regarding what I’m doing in Africa both personally and professionally.

A brief intro to both:

Personally: I’m a 29 year-old American, who recently graduated with an MBA in Global Management (with a focus in Finance/Strategy).  I’ve lived and traveled abroad a decent amount over the past few years, particularly in Asia.  However, this is my first time in Africa.

Professionally: I am working as a consultant for a startup non-profit based out of Washington, DC.  Its goal is to provide partially subsidized advisory services to Small and Medium Enterprises (SMEs) in emerging markets, with the goal of helping entrepreneurs (mainly female owners of family businesses) grow their business.  I’m one of six team members in Nairobi, and our sister cohort of seven members is based in Bogotá/Medellín, Colombia. Hopefully, I will be linking to blog posts from other members of our inaugural class, so you can see and understand what others are doing.

During the year, I will be tweaking the formula as to what works and what doesn’t on this site (the layout is clearly temporary).  Any feedback or input is welcome, and the comment sections are (hopefully) open.

What industry is your client in?  What particular projects are you working on?

We are in training and have yet to meet our clients.  We spent two weeks in Washington, DC getting to hear from individuals from across the spectrum: NGOs (World Bank, IFC), Social Investors, Consultants (McKinsey, Dalberg), US government entities (OPIC, Dept. of Commerce), large multinationals (GE, ExxonMobil, FedEx), and aid outreach organizations.

The past two weeks we’ve been in Nairobi, meeting people from our local partner (a Kenyan bank, more on them to come) as well as people working in various parts of International Development in East Africa.

The best way to describe the tone of the past month: excitement. Everyone we’ve spoken with is extremely bullish on Kenya’s potential (despite the international airport, the hub of East Africa, losing a terminal to a fire last week).  People are optimistic that this time things are going to be different.  They have witnessed the rise of countries like China, and are quite justifiably thinking, “Who will be next?”  Africa is in many ways one of the final frontiers left on earth. Though with an increasingly connected world, positive demographic trends around the continent, some decent politicians, and strong pushes against health problems…some countries are positioned to move out of the periphery in the not too distant future.

With that, I’ll sign off.  I’ll leave you with a photo taken from my apartment balcony when the sun finally broke through this past weekend (yes, it’s winter on the equator in Africa right now).

View from my apartment’s balcony (click to enlarge)