BySudeshnaSarkar
Whentheforeigninvestmentbugbithim,SimonShenwentaboutchoosinghisdestinationabroadwiththemethodicalnessofascientistundertakinganewexperimentthatthoughriskycouldyieldgold.
Itwasinthe1990sandtheconsumergoodstraderfromXiamen,amajorportcityinsoutheastChina,wasworriedbyhisfallingexports.HewassellingshoesandclothingmanufacturedinChinatoEasternEurope,butthemarketthereplummeted.
“Themarketstoppeddevelopingandthecurrencieswerefalling,”the50-year-oldsaid,thegoldentanofhisrecentAfricansojournmarredbyfrownsofrecollection.“Irealizeditwasbettertolookatotherplaces.”
UnlikeEurope,Africa,followingtheendofcolonization,waslookingupasaninvestmentdestinationinurgentneedofinfrastructure.Soin1995,Shenwentonareconnaissancebinge,visitingfourAfricancountrieshehadshortlisted:Nigeria,Egypt,KenyaandSouthAfrica.
TurningtoAfrica
ThetripconvincedhimthatSouthAfricawaswherehisfuturelay.“TherewasabigchangeinSouthAfrica,”heexplained.“Apartheidhadended,internationaleconomicsanctionshadbeenliftedandanelectionhadbeenheld.Togettheeconomyoffthegroundafterbeingisolatedfortwotothreedecades,thenewgovernmentwasencouragingforeignbusinessesandinvestments.”
Atthesametime,SouthAfricaalsohadtheinfrastructureandbusinesscultureforeigninvestorslookedfor,comparedtosomeofitspeerswhichwereeitherfacingcivilwaroradministrativechaos.SothediewascastforShenandin1998,UnionColorCo.,thecompanyheregisteredinJohannesburgwithalocalpartner,beganoperations.
Thistime,thefocuswasonbuildingmaterialsasAfricawasonaconstructiondrive.Gradually,headdedinteriordecorationitemsandthen,afterbecomingfamiliarwiththegraniteminesinSouthAfrica,includedthatinhislistaswell.In2012,hegotacontracttosupplygraniteforaprojectbutcouldnotfindenoughsuppliesinSouthAfrica.AbusinessacquaintancetoldhimaboutthegraniteminesinMozambiqueandthatishowhebranchedinthatsoutheastAfricancountry,findingalocalpartnertogointobusinesswith.
Today,UnionColorCo.hasover200employees,mostofwhomarelocals.ShenisemphaticthatitisanAfricancompany.“XiameninChinaismyhometownandmyrootsaretherebutmybusinessisbasedinAfrica,”hesaid.
Planningthefuture
WhatmakesShen’sstorydifferentfromthatofmanyChinesecompaniessuccessfullydoingbusinessinAfricaishisstrategyforthefuture.HeisnotinterestedinexpandingtomoreAfricancountries.“Ihavealreadyovercomemanydifficulties,”hesaidwithasmile.“Attheageof50,youknowyourdestiny.”
Heseeshisdestinynowasamentor,sharinghisknowledgeoftheAfricanmarketwithChinesecompaniesinterestedinforayingintothecontinent.HeisalsoreadytoprovideChinaknowhowtoAfricancompaniesseekingtodobusinessinorwithChina.
HethinksChinesePresidentXiJinping’sannouncementoftheSilkRoadEconomicBeltandthe21stCenturyMaritimeSilkRoadInitiative-aglobalnetworkofinfrastructure,transportandmarketsforamorevibranteconomyinAsia,EuropeandAfrica-hasenergizedChinesecompanies.“Thethoughtoftheindustrial,infrastructuralandagriculturalnetworksinthethreecontinentscomingtogetherhasencouragedChinesecompanies,”hesaid.“Fromgovernmentstoindividuals,peoplearepayingmoreattentiontoAfrica.Lotsofpeoplearecomingtometoaskforadvice.ItmademethinkmaybeIshouldnotrunmyownbusinessnowbutadvisepeople,helpthemtodevelopinAfricanmarket.”
It’sataskforwhichhe’swellqualified.ShenisalsoontheXiamenCommitteeoftheChinaCouncilforthePromotionofInternationalTradeandanofficialoftheXiamenChamberofInternationalCommerce’sSouthAfricaLiaisonOffice.
Xiamen,oneofthefirstChinesecitiestoopenuptotheoutsideworld,hasavibrantexhibitioneconomyandhostsaseriesofinternationalexposeveryyear.TheChinaInternationalFairforInvestmentandTrade,intoits20theditionthisyear,hasbeenattractingdelegationsfromagrowingnumberofAfricancountries.
“WeneedtothinkhowtomakethisfairmoreattractiveforAfricancountries,”Shensaid.“Becauseofthedistanceandthedifferencesincultureandtime,itisdifficultforChinesecompaniestodobusinessinAfricaandviceversa.Weneedconstantfollow-upforthat.”
That’showtheideaofestablishinganAfricaCentercameintohismind.Hepitchedtheconceptlastyearataround-tableconferenceorganizedbytheXiamenCouncilforthePromotionofInternationalTradethemed“GotoAfrica”whereitmetwithenthusiasm.Thecenterisexpectedtocomeupbythisyear,possiblyintheXiamenFreeTradeZone.
“Atthetradefair,Africandelegationscomeforfourdays.Butthecenterwillbeopen365daysayear,”Shensaid.CA
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Business
SimonShen’sApproachtoAfrica
»TodobusinesssuccessfullyinAfrica,youhavetobepatient.Youwillmeetmorechallengesanddifficultiesthanyouanticipated.
»Youmusthavetherightpeople.Besidesthelocalstaff,youneedtherightsupportfromChinabecauseskilledpeopleareverydifficulttofind.There’snoconflictinthis.Getacoreofskilledpeoplefromyourowncountry,thencreatejobsandhirelocally.Thecoreteamcantrainthelocalstaff.
»Doyourpreparationsandestimationscarefully.ForaprojectinAfrica,allocatedoubletimeandcostthanwhatyouwouldneedinChina.
»It’salwaysbettertohavealocalpartnerinAfrica.Alocalpartnerwillknowthelocallaw,cultureandpeopleandmakeyourlifeeasier.
»Respectthelocalculture,lawandpeople.That’sveryimportant.SomecompaniesareverysuccessfulinChinaandelsewherebutfailinAfricabecausetheyfailtoheedthis.
SimonShen(left)withJoaquimAlbertoChissano,formerPresidentofMozambiquePhotoscourtesyofSimonShenAcraneoperatesinaquarryinManica,aprovinceincentralMozambique