The global image of Africa is one of extreme poverty and dependence. Although this is true to a degree another side to continent exists. Business magazines, and other business media looking at Africa, often hail the business success of South Africa. This characterization is not necessarily incorrect in light of the continental reach of companies such as the South African telecoms giant MTN. Arguably, private businesses at the lower economic levels are surprisingly vibrant in the face of lack. Nowhere is this more apparent than in Nigeria. What South Africa has with regards to infrastructure and financial capacity, Nigeria has in abundance in innovation and desire.
A look at the Nigerian Economic Environment
Nigeria economic growth has been somewhat hampered by its anarchic image and reputation for high levels of corruption. It is well known that the Nigerian government’s income is primarily derived from oil and gas revenues. Jibrin Abubakar’s April 3 2009 Daily Trust article “Africa: No Nigerian Company on Continent's Top 30” highlights the fact that there is not a single Nigerian company on the Africa’s top 30 companies. Abubakar bases his listing on the rankings from African Business magazine which shows that, other than FirstBank of Nigeria Plc, most Nigerian business giants actually list only list on the top 200 African companies. According to the report, Nigeria’s companies’ poor performance relates to the fact that “[t]he Nigerian Stock Exchange lost more than 60% of its value between March 2008 and March 2009."
This lacklustre performance on part of large corporations is not necessarily the case on the ground. Negligible provision of basic services on the part of the state has brought out the impressive entrepreneurial spirit of ordinary citizens. For instance, the absence of a functioning state public transport system has resulted in people turning private vehicles such as minibuses and motorcycles into public transport. The most striking of all citizen based service provision is that of Nigerian water vendors.
Nigerian Water Vendors
Andrew Walker’s February 5 2009 article on BBC News online, “The water vendors of Nigeria “, profiled the often undocumented work of water vendors. In Nigeria access to drinking water and sanitation is not commonplace despite billion dollar revenues from oil and other industries. According to Walker there are tens of thousands of “water vendors who deliver jerry cans full of water to houses built without any kind of sanitation.” Walker’s interview with vendors showed that daily income for this kind of work is about US$4.70 daily which quite impressive for a country where, on average, people survive on US$2 per day. Vendors buy their water from borehole owners and higher income homes which drill their own boreholes. This can net in about US$47 daily if the owner chooses to sell water to vendors.
Productivity in the Face of Adversity
Despite the dire situation in many African countries, including Nigeria, citizens find way to survive without depending on handouts. In no way does this absolve the state from its responsibility to its citizens but it does highlight the perseverance and originality of its people. Countries in the developed world and stronger African nations like South Africa have yet to see that level innovation on the ground.
In the face of the current global economic crisis and donor fatigue perhaps the key to helping the poor is for bigger African companies is to shore up these burgeoning industries. Clearly, there are ideas and motivation, all people need is support.
