HelenHai,FounderandCEO,MadeinAfricaInitiative
Chineseconsultanthelpsforeigninvestorslookbeyondstereotypesanddiscoverthecontinent’sadvantages
ByRachelRichez
HelenHaiwasthrilledtobevisitingBeijingallthewayfromChangchun,amajorcityinnortheastChina,withherfatherpromisinghertheywouldstayatoneoftheposhesthotelsinthecapitalasherbirthdaytreat.Butwhenthereceptionistatthefive-starhoteltoldhimitwouldcost$100anight,hisfacefell.“It’stooexpensive,”hesaid,dragginghisdaughterout.
ForthemajorityofChineseinthe1970s,thetariffwastooexpensive.AccordingtotheWorldBank,China’sGDPpercapitawasonly$154in1978,lessthanonethirdofSub-SaharanAfrica.
Asshelookedbackatthelobbyofthehotelherfathercouldn’tafford,theseven-year-oldthoughtabouttheworldinherowncountrythatdidn’tbelongtoher,thatshecouldneverenter.Aworldthatonlyforeignersseemedtobeabletoafford.
Offthebeatenpath
Thirtyyearslater,ChinahasbecomethesecondlargesteconomyintheworldandHelenHaiisahigh-profilebusinesswoman.Twoyearsago,shefoundedtheMadeinAfricaInitiative,anorganizationthatprovidesknowhowtoindustriesseekingtorelocatefromChinaandothereconomiestoAfricancountries.Itfacilitates“triangularcollaborations,”bringingtogetherAfrica’scomparativecostandgeographicaladvantages,Asia’smanufacturingknowhowandtheglobalmarket.
Haistartedtheinitiativebecauseshelongedformore.“Beforetheageof30,mylifewaslikethatofatypicalChinesegirlborninthelate1970s-fulfillingmyparents’dream,whichwastogetagoodjobinaglobalcorporationandthenclimbuptheladder.Butafterachievingaveryhighposition,Istartedtothinkthatinlifethereis[notonly]achievementbut[alsoa]purpose.”
SenttoEnglandtostudyactuarialscienceat17,followedbyacareerintheLondoncorporateworld,HaicamebacktoChinain2007asthechiefactuaryfortheinsurerZurichFinancialServices.Thoughthrilledbyherprofessionalsuccess,shelongedformoreanddecidedtotakeasabbatical.Atfirst,sheconsideredcreatingashoebrandandmetZhangHuarong,ChairmanofHuajian,oneofChina’slargestshoemanufacturers.
ZhanghadbeeninvitedbythethenPrimeMinisterofEthiopia,MelesZenawi,toinvestinthecountry.ThatwashowHaifoundherselftravelingtoEthiopiaasanadviserinlate2011.Duringthetrip,shestayedattheSheratonAddisHotelandwhatshesawtherebroughtbackherchildhoodmemory.
“WhenIlookedaround,Ididn’tseeanylocalpeople.WhatwentoninmymindwasthatoutsidethebiggateoftheSheraton,theremustbealotofyounggirlsthinkingexactlylikeIdid30yearsback.Intheirmind,thebeautifulSheratonwasaworldthatdidnotbelongtothem.Butwhattheydidn’tknowwasthatiftheircountrycouldcapturetherightpathofdevelopment,theirlifewouldchangedramatically.”
Attheendofthetrip,ZhangdecidedtoinvestinEthiopiaandHaiwasaskedtosetuptheoperationfromscratch.
“Ittookmethreemonths,fromdesigntoinvestment,toactualproductionandtoexport.Attheendofthefirstyear,Irecruited2,000localworkers.Bytheendofthesecondyear,Irecruited3,500localworkers,”shesaid.
ThesuccessoftheoperationmadetheEthiopianGovernmentappointHaitheiradviserforindustrializationandinvestmentpromotion.
FollowingthedevelopmenttheoryofJustinYifuLin,formerChiefEconomistoftheWorldBank,HaidecidedtopromoteAfricandevelopment.ThetheoryattributesChina’seconomictransformationintheearly1980sandothereconomies’inthe1960sfundamentallytocapturingthewindowofopportunityduringtherelocationofindustries.Theseeconomiescourtedtherelocatingindustrieswhichenabledthemtocreatemillionsofjobs.
HelenHaiinfrontoftheUNheadquarters,NewYorkCourtesyPHOTOS
HelenHaiwithEthiopianPrimeMinisterHailemariamDesalegnBoshe“Now,after30years,Chinaisabouttorelocate85millionjobs,”Haisaid.“ThisisagoldenopportunityforAfricabecauseifAfricacancapturethis,itcanenjoythesameeconomictransformation.”
ShowcasingAfrica’sadvantages
Tomakeitpossible,itisaprioritytoimproveAfrica’simageininvestors’eyes.Haibelievesthiscanbemanagedbyimprovingthe“informationasymmetry.”
“InvestorsoutsideAfricadon’tknowanythingaboutAfricancountries.BeforeIwenttoAfrica,whatdidIknowaboutAfrica?Ifyou’daskedmeforafewwords,Iwouldhavesaidwar,disease,corruptionandsafari.Becausethat’stheAfricaweknowfromtheBBC,fromCNN,fromallthemedia.”
Tochallengethisimage,HaisharesherAfricanexperienceininvestmentforumsaroundtheworld.“IworkedverycloselywiththenEthiopianStateMinisterforIndustry[TadesseHaile];Iwouldcallhimat10:00intheevening.Hewouldhaveaverybusyschedulethenextday,buthewouldmeetmeat7:00inthemorninginhisofficetotrytounderstandmyproblem.Soforme,yes,therearealotofproblemsinAfricaintheearlystagebutifyouhaveaministerwillingtocometoofficeearlierthanthecleaner,thatmeansalot.”
TheMadeinAfricaInitiativehelpsAfricancountriesdiscoverwhattheircomparativeadvantageisandprovidesthemwiththeAsianmanufacturingknowhowneededforindustrialdevelopment.HaisayscompetitivelaboristheadvantageofmanyAfricancountries.Inaddition,somehavetreatieswiththeUnitedStatesandEuropethatallowthemtoenjoyzerotariffonmanyimportedgoods.
“ThisisabigadvantagebecausebyshiftingtheirordersfromChinatoAfrica,buyersinEuropeandtheUnitedStatescanimmediatelyenjoyupto30percentsavingsbecauseofthoseduties,”shepointedout.Finally,geographyisalsoanadvantageforthecontinent,beingclosertotheEuropeanandAmericanmarkets.TheMadeinAfricaInitiativefocuseson“quicksuccesses,”liketheEthiopianshoefactorythatgotoffthegroundinthreemonths.“Wefocusedonmakingquicksuccesses,withinsixmonths’time[or]oneyear,sopeoplecanreallyseethatitcanbedonequickly,”Haisaid.
Lastyear,HaiwentintopartnershipwithChinesetextilesmanufacturerCandyMatoexpandtoRwanda.Shesaysthefactorycreated500jobs.ThebusinesswomanhasalsobeenaconsultantfortheDiamniadioIndustrialParkinDakar,Senegal.Impressedbyherwork,theUnitedNationsIndustrialDevelopmentOrganizationnamedheritsgoodwillambassador.
“IamabeneficiaryofChina’seconomicdevelopmentandtransformation,”ishowsheseesit.“AndnowIamactuallymovingfrombeneficiarytocontributorinAfricandevelopment.”
HelenHaihasfoundherpurpose.CA