An African Dilemma

Africa is a continent to experience and understand. It has the potentials and resources for growth and development, as well a heritage of many cultures that had enriched its own. Many went through struggles for national independence against foreign colonisers, and today pride themselves in their achievement of freedom and democracy.

But why are most African countries perpetually dependent upon foreign aid? Bilateral and multilateral assistances, not to forget private philantrophies have prioritised African countries's agenda to eradicate not poverty but diseases like HIV and malaria. How far have all these helps gone to make life better for the average African?

The last four months of living in Cape Verde has been an experience unlike the five years I spent earlier in Mozambique. The difference is that, I interacted much more with the locals - rather than confine myself to a particular community that had little to do with the local population. Sta. Maria is a small town that serves as the capital of Sal island. It has a population of about 20,000, of which the majority live in Espargo, the commercial capital. It is therefore extremely easy to get to know everyone - the restaurant and bar owners and their clientele, the inhabitants of the pier who live by the fishes they catch and sell, the fruit and vegetable sellers and, the businessmen and entrepreneurs looking for investors and property buyers.

Cape Verde offers many business opportunities to foreigners, especially in tourism and property development. According to sources, around 1.8 billion Euro has been approved in 2007 for the develoment of tourism infrastructure - such as resort hotels, condominiums and villas. The crises of 2008 put a temporary stop to all these developments but it has picked up again recently. There are many business possibilities for any creative investor - big and small. For instance, there is a marina and golf project that is waiting for foreign investment. There are first class resort hotels awaiting tourists, more restaurants to make competition in this branch more enjoyable.

Inter-island shipping and port facilities are acutely in need of capital infusion especially from the private sector. Goods take time to move from island to island and from Cape Verde to neighbouring West African countries. However, starting a shipping business is not as easy and it goes the same with starting a local company. To start a business requires a 25% Cape Verdean partnership. To bring in a cargo ship from another country means paying an import fee of around 30% of the value of the ship. These are not the major hurdles to make.

The worst problem has been in communication. It is not easy to get a connection with the CV Telecom - not even with all the business reasons one argues in order to get a telephone/IT line. It is waiting time of 50 days, if not more. Then it is the matter of getting a residence visa which in most cases, is no big deal if one is already a property owner with a registered local business. The Cape Verdean police in Espargo - which deals with visas interpret the visa rules and regulations as it wishes. It seems normal for anyone sitting in some government entity to interpret the law according to one's own sense of humour.

The most problematic aspect of doing business in this area is the lack of communication - people who are supposed to call, or communicate with you simply ignores the phone and email systems, so that doing business is wasting time in perpetual waiting. They say " No stress" but there is nothing more stressing than waiting for the other party to communicate in order to continue the process of doing a business. No matter how acute the shipping and port improvement is, the people responsible for expediting this development don't seem to be in a hurry.

For anyone who wants to give something back to Cape Verde - for the days of sun and "strees free" living, doing business that assures employment and progress is not a very self-satisfying engagement. #