Why it is entrepreneurship different from Africa

Why it is entrepreneurship different from Africa

Addis Ababa (HAN) October 2, 2014. Expert Analysis, Your Power & Regional Influence Magazine, opinion page, By Swedish entrepreneurs Madeleine Rosberg and Stephanie Persson believes Ethiopia is one of the markets with “great potential”.

Entrepreneurship, Government, and Development in Africa: In 2009, President John Kufuor, President of Ghana Description: After centuries of insufferable oppression by colonial powers, bloody independence struggles, and corrupt home”grown regimes, “Africa today is quickly awakening, and determined to mainstream itself in the phenomenon of the globalization process,” says John Kufuor, who served as Ghana’s president for two terms starting in 2000. Kufuor recounts how Ghana transcended its dark history to attain astonishing political and economic progress, establishing the nation as an exemplar for fellow African states.

In 2010 Swedish entrepreneurs Madeleine Rosberg and Stephanie Persson started Responsify AB, a company that helps retailers in western markets source textile and leather products in sub-Saharan Africa.

Responsify works with factories that manufacture cotton and leather goods such as T-shirts, leggings, skirts, bags, gloves, shoes and belts. In addition to Ethiopia, the company also has a presence in Kenya, Tanzania, Uganda and Rwanda.

Rosberg believes Ethiopia is one of the markets with “great potential”.

‘Africa is hip right now’

“Ethiopia has a big population of 90m people. Adults all need work. They also have raw materials given that they have the largest population of cattle in Africa,” she says. “Other countries like Kenya and Uganda also have potential but on a smaller scale.”

The social entrepreneur says demand for African-made apparel is rising in the US and Europe, particularly when companies can show that people involved in the value chain have benefited, and no damage has been done to the environment.

“Consumers in Europe and the US are tired of the ‘Made in China’ label. It is not that attractive anymore. Lately people have opened up to African-made products because it is exotic,” says Rosberg.

“Africa is hip right now. We get a lot of requests from companies all over the world, but the problem lies on the delivery side. We need more factories here in Africa. This industry is still new in many countries and hasn’t matured yet. But we can see in Ethiopia, for instance, the amount of investments is increasing yearly.”

High potential, but challenging

Despite the opportunities in Ethiopia, Rosberg says it has been challenging working in a developing country. “Ethiopia is a complicated market to do business in. There are plenty of challenges that the government is still working on.

“Ethiopia was never colonised and so it’s quite different from other African countries that have been exposed to the rest of the world,” says Rosberg. “It is also challenging being young and a woman here. You have to be quite harsh. In Sweden you can rely on the system to work. Here there is a lot of bureaucracy. You have to be patient with everything.”

However, Rosberg notes that some of the challenges associated with doing business in Ethiopia and other parts of Africa is what makes western brands and retailers seek the services of Responsify.

“I think one of the reasons why our clients need us is the cultural gap. They want someone who understands the US and European culture, and can adapt it into the African context.”

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