Young Malian talks about impact investing in francophone Africa
By Kate Douglas, howwemadeitinafrica.com, 15-05-2014
Issam Chleuh |
Issam Chleuh is the 27-year-old Malian national and founder of
the Africa Impact Group, an advisory, research, data and news service
provider that specialises in impact investing in francophone Africa.
Impact investing refers to investments made into companies or funds with
the aim of generating a social or environmental impact, alongside
financial returns.
In 2011, Chleuh was responsible for launching an impact investing
task force at EY while working in the firm’s Boston office. In April
2012, he left the company and moved to the Republic of Congo
to launch Africa Impact Group.
He has since assisted companies, such as
the Dangote Group in the Congo, with their corporate social
responsibility (CSR) projects, philanthropy and private capital to
develop impact investing business models and initiatives.
Chleuh, who grew up in various countries across francophone Africa, told How we made it in Africa
about investing in the region and why he sees an opportunity for
entrepreneurs to be innovators in Africa’s French-speaking countries.
Where do you see investment potential specifically in francophone Africa?
We are interested in what we call impact industries: agriculture, education, health, real estate, energy, water, social entrepreneurship, microfinance, etc.
In addition to these, two areas of focus of ours are CSR and digital
impact investing. We believe CSR holds huge potential to boost
socio-economic development in Africa and beyond. Also, we believe there
are tremendous market and impact opportunities at the intersection of
mobile technologies (phones, apps, etc.), disruptive innovations, impact
investing and youth entrepreneurship. This is what we call digital
impact investing.
Are there business challenges that are unique to francophone Africa?
Francophone Africa is lagging behind anglophone Africa. This is a
fact. Francophone Africa accounts for only 19% of sub-Saharan Africa’s
average GDP while anglophone Africa (excluding South Africa) accounts for 47%. When we look at the World Bank’s Doing Business
report, the English countries always rank more favourably than the
French ones: it is easier to start a business or obtain payment from
debtors, for instance.
There are various reasons – or hypotheses should I say – to explain
this. I personally think the English were better colonisers than the
French. But this is my opinion.
What do you think are some of the common misconceptions surrounding business and investment opportunities in francophone Africa?
The main perceptions and myths surrounding business and investment opportunities
in francophone Africa is that some investors think they are not worth
investing in. Most investors would rather invest in anglophone
countries, especially in the ones experiencing the highest growth: South Africa, Nigeria, Kenya and Ghana to cite the main ones.
These perceptions and myths are slowly becoming overrated as we see
more and more investors entering these markets. With countries like Côte d’Ivoire
back on the map after a decade of political instability and the
visionary leadership of its leader, investors are rushing in to Abidjan
for deals. Democratic Republic of Congo
is a country that is receiving and will receive more and more
investments as it has tremendous natural resources. Also, Kinshasa is
the third largest urban area in Africa after Cairo and Lagos and the
second largest francophone urban area in the world after Paris.
Africa has always been victim of the perception-reality gap, and
francophone Africa particularly. People perceive Africa or francophone
Africa in a certain way, but the reality is actually different. The good
thing is this gap is narrowing and investors appreciate the opportunities in these markets.
What are some of the challenges you faced starting the Africa Impact Group?
We faced a couple of challenges in the early stages of the
organisation. First, the biggest challenge was how to start and grow a
pioneering organisation in a brand new field. We had no precedents. Like
Harvey S Firestone said, “the way of the pioneer is always rough”. We
are pioneers.
Second, how to build a name and generate a pipeline of clients, entrepreneurs and
potential investments with limited funding. The way we were able to
address these challenges is through resilience and never quitting. We
had to complete pro bono work for potential clients to judge our
capabilities. Also, we have invested in business development by
attending various relevant events (forums, conferences and roundtables,
among others) to build a network and source deals but also to keep aware
of the latest developments in finance, development and Africa.
Do you have any advice for entrepreneurs in Mali, or francophone Africa in general?
Dare to risk and innovate. In the developed world, it is hard to come
up with innovative business ideas to address market needs. Every need
seems to have been addressed, at least for the most part. This is the
feeling I have walking in the streets of Boston. However, when I am in
Bamako, Brazzaville or Bujumbura, ideas keep popping in my head. I am
sure you too have experienced the same thing. This is why my first
advice is dare to innovate in Africa. If you do not do so, a fellow
Chinese, American or French entrepreneur will do it. As a result, the
idea you have spent the last couple of years working on, could already
be brought to market in your own country. I am sure it will make you
mad.
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