In other words, how Africans living outside Africa can shape the continent’s future.
Much of what the bank director told his audience was uplifting (Dr. Adesina is known as “Africa’s optimist in chief”), such as, that direct foreign investment (FDI) in Africa had more than doubled in just two years—from $40 billion in 2020, to $83 billion in 2022—despite the recent COVID pandemic. And that much of that FDI wealth was being propelled by African expatriates in Europe, Asia and North America—and declaring that nearly $100 billion in annual remittances to Africa today indicates, in his words, that “the African diaspora has become the largest financier of Africa!”
However, he also cited statistics that are discouraging, starting with the 20 million Africans living outside the continent—a doubling from 30 years ago. Dr. Adesina noted that even now 70,000 skilled professionals are leaving Africa annually.
These Africans, he said, were largely professionals, some of the best trained and educated men and women of their generation. Their absence costs Africa dearly.
The UN Commission for Trade and Development (UNCTAD) calculates that each migrating professional represents a loss of $184,000.00 to their homelands—money African governments spent on their development. This “brain drain” acts as a subsidy the world’s poorest nations provide to the world’s richest.
These are the negative indicators associated with Africa’s Brain Drain, which for decades has haunted Africa, where human capital continued to be depleted faster than it’s replaced.
It’s a vicious cycle. With some 10-12 million joining the labor force each year, a continent capable of creating barely 3 million jobs annually leaves many of its best unemployed. Their limited opportunities force those Africans to seek employment abroad—some 11 million in Europe, three million in North America and five million in the Middle East and across Asia.
Nonetheless, even as a Brain Drain significantly depletes Africa of skilled human resources, there is reason for hope. Migration also boosts capital flows, first as remittances, then in the promotion of trade and investment. It also enhances knowledge and technology transfers.
Also worth pondering: talent that leaves is also talent that positions itself for a profitable return. Many of Africa’s emerging success stories began far from home, in the households of African diplomats and business executives raising families abroad.
So, we can’t bemoan a Brain Drain without also recognizing its mirror image: the Brain Chain offering new possibilities for Africans globally.
From two of Africa’s smallest countries—Sierra Leone and Guinea—here are some promising Brain Chain enterprises:
RASHID ABRAHAM CONTEH: Furniture maker turning to food processing.
If you ask Rashid Conteh to list the many obstacles he’s had to overcome launching a business in his native land, be prepared for a long answer.
The 54-year-old graduate of Kingston University London begins with “access to affordable financing,” then adds “unreliable energy and high energy costs,” then “access to clean drinking water,” then “capacity building of middle management” then “poor road networks” then “a skills gap.”
“Africa’s Brain Drain has haunted the continent for decades where human capital continued to be depleted faster than it’s replaced”
Yet, instead of complaining about what can’t be done in Sierra Leone, it’s better to reflect on what can. So far, that strategy is working.
Rashid Conteh spent more than half his life in the UK. He returned to Africa in 2005 as a dual UK/Sierra Leone citizen and as an exporter—sending furniture he manufactured to wholesalers in the land of his birth. He sought other opportunities, starting with rice.
“Sierra Leone imports $250 million in rice annually,” Mr. Conteh explains, or nearly $1 million daily. Thinking of an import-substitution model, Conteh hoped to grow rice efficiently enough to replace some of that arrived from abroad.
Instead, he turned to cassava, a tuber originally grown in Brazil that can be milled into a pellet resembling rice, already a staple in Africa. It’s served under the names “attieke” and “couscous” in some parts and known as “garri” in Sierra Leone.
“We discovered we had no competitive advantage growing rice, but plenty for garri,” Mr. Conteh continues. He cites the 5.5 million hectares of arable land in the country, of which less than 6% currently is under cultivation.
Mr. Conteh’s new company, Sierra Agro-based Industries and Services began in 2013 with just under $1 million in investment, funds raised from his furniture business. Today the small enterprise has grown from three employees to 45 and, says the CEO, “indirectly, hundreds more.”
That’s because Mr. Conteh does more than produce cassava. He also produces cassava farmers, training local people to improve their crop yields as they improve their skills. Moreover, he’s transforming cassava harvested from the ground into cassava flour that’s rendered into pasta, which he exports to neighboring Guinea and Liberia as well as Senegal and back to the UK.
The company and now employs dozens of rural workers and youth in the southern province of Bo, Sierra Leone. It buys cassava roots from local suppliers. He expects to be profitable this year.
ALEXANDER TOUNKARA KONE: from Guinea to New York—and back!
Thirty-six-year-old Alexander Tounkara Kone entered the US as a high school student speaking almost no English, then earned degrees on two Ivy League campuses—Brown and the University of Pennsylvania. Along the way he excelled in American-style football, starting in college then as a practice player for top US professional teams, then in Europe, where he starred for the Berlin Rebels.
“I played as recently as last year,” he says with a grin. “I’ve still got it in me!” The only thing bigger than his muscular 6′ 6″ frame is the smile he flashes repeatedly as he works a rapt audience in Conakry, Guinea. There, last November, Tounkara’s Amsterdam-based Niandan Corporation https://capybara-coral-blond.squarespace.com/ launched Guinea’s first impact venture capital vehicle, The Nimba Fund.
The two entities—Niandan and Nimba—are working in tandem to identify, mentor and finance enterprises that meet two criteria: growing (and growing profits) in Guinea for investors and creating jobs and wealth for young Guineans.
Guinea is one of Africa’s poorest countries, but also one of its richest—in terms of the mineral wealth it holds beneath its forests, particularly in iron ore, bauxite, gold and diamonds. This wealth potential is key to Niandan and Nimba’s futures, as it is expected to generate some $40 billion in foreign investment over time.
“How Africans living outside Africa can shape the continent’s future”
That politician, who later ran for president, suggested Mr. Jaji visit Sierra Leone to see whether he could spot other business opportunities.
And he did, immediately. Sierra Leone’s lone international airport is notoriously hard to get to from the country’s capital, Freetown. It sits on an island, facing Freetown, whichlies across an expanse of Atlantic Ocean. Mr. Jaji learned upon arrival that taxi service by land can take as long as five hours. Alternatives—either a ferry or a helicopter—were neither regular nor reliable.
So, Mr. Jaji decided to launch his own water taxi service, called Pelican.
The Nigerian entrepreneur sold four of his Philadelphia properties to capitalize his start-up, raising around $500,000 to build a jetty and ship it in parts to Africa while he searched for used watercraft to refurbish.
Mr. Jaji faced all the difficulties any outsider could expect—local regulators shaking him down for payoffs, local partners who took him to court for a larger share of his profits. One December he spent 10 days in jail after being accused of using his watercraft to smuggle drugs (those accusations disappeared after a white powder discovered on one of his boats turned out to be baby powder). He decided to shut Pelican down and relaunch his service under a new name.
Today, he runs Sea Coach Express, which has 50 boats and employs 300 Africans across three countries: Sierra Leone, Guinea and his native Nigeria. Mr. Jaji says he now handles about 90% of the Freetown-bound passengers arriving at Sierra Leone’s airport, a $45 one-way fare that amounts to around $5 million in annual revenue.
He also opened an international arrival service connecting Freetown to Guinea’s capital, Conakry. Sea Coach Express’ service operates thrice weekly at a cost of $100 each way on Wednesday, Friday and Sunday. The service is reliable, clean and safe with immigration and customs services at either end.
While not as lucrative as his Freetown airport operations, the international service helps Mr. Jaji build credibility for future operations.
“The African coast is wide open,” Mr. Jaji says.
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