Turnaround and Transformation in Africa, A People-centric Approach 

I consider myself a pan-Africanist. Witnessing Africa's transformation has been a fantastic experience for me. We are on the cusp of a brilliant takeoff. Making a method out of madness is the preferred way of raising new managers and trainees joining the workforce. In 2006, a BPO-style shared services as implemented for processes, further enhancing the transformation pace at Bidco Africa , where I was head of HR and Training.

In my 27-plus-year career as a corporate leader, I prioritised transformation through innovation, and I’m very hopeful about Africa’s growth in social, economic, digital and communication sectors. The government's macroeconomic reforms are ground-breaking. We need optimism from the media, thinkers, traders, labour unions, and professionals. Investors couldn’t have asked for more. 

The Industrial Transformation

Several African nations, particularly Ethiopia, where I work now, are poised for significant growth in the steel sector. A slew of infrastructural upgrades is underway. The focus is on capacity utilisation, value addition, and regional cooperation for sustainable development. I am a man of speed, and I bring agility to the companies I am associated with as a member of the Board of Directors. Challenges from global events and internal conflicts are overcome with swift resolutions. As the CEO of Ethiopian Steel PLc, I have felt that the last few years have been challenging for all industries, including steel, due to global headwinds such as COVID-19 and conflict in Ukraine. Ethiopia, however, has quickly resolved its internal issues and is now on the path of resurgence. This is particularly evident in the northern region, where reconstruction efforts are underway in a big way. 

Despite challenges, Ethiopia can boast its existing capacities and infrastructure, but the primary challenge lies in maximising factory operations to reach optimum production levels. Africa is resilient, and Ethiopia leads the way. A growing international market and recent macroeconomic reforms have boosted investors, including foreign direct investment. Opportunities for business growth in the steel sector are tremendous, and investor confidence is high. There is a need for access to funds for raw materials. We must focus on expanding Africa-based manufacturing and enhancing value addition within the continent. Our group is committed to Ethiopia’s growth. We monitor current capacities utilisation and raw material access. The ongoing Russia-Ukraine conflict is significant globally, but we have yet to feel any major impact on Ethiopia's steel sector. 

Developing regional industry clusters across Africa is vital for building a sustainable steel ecosystem. The African Continental Free Trade Area (AFCFTA) catalyses enhanced intra-African trade. It advocates for near-shoring strategies and regional market integration, which helps optimise business operations and supports the livelihoods of local people. 

Policymakers must facilitate seamless trade within regional blocks and address industry concerns to foster growth and competitiveness. As Africa moves towards increased trade cooperation, industry leaders like me look forward to the region's tremendous manufacturing potential. 

In a diverse country like Ethiopia, with cultural richness and business etiquette and practices, it is essential for foreign industrial park developers and managers to ensure that some members of their team have international work experience. Cross-cultural competencies and excellent communication skills are crucial. Governments should help companies access the potential of the immense talent pool outside the manufacturing workforce.

We must be able to generate good jobs. Ethiopia’s growing workforce, roughly two million persons reaching working age per year, puts pressure on the country’s labour market. Improving current jobs while creating sufficient new jobs is necessary. 

Africa’s Digital Transformation

The 54-nation continent is a talent basket and treasure trove of opportunities. Despite several challenges, digital transformation is increasingly becoming the driving force of development. Between 2016 and 2021, there has been a 115 (World Bank Group. (2024 August 6). Digital transformation drives development in Africa. World Bank.) per cent increase in Internet users in sub-Saharan Africa, including Ethiopia. As the Head of HR and Training (Kenya, Tanzania, and Uganda) of Bidco Africa Ltd. in, I encouraged digital savviness in employees, suppliers, and distribution channels, and Bidco consistently won awards as the pioneer in the usage of ICT (Information, Communication, Technology) in Business. Passion for creating learning organisations and teams that deliver significant value to achieve robust and sustainable growth, digital excellence, creativity, and agility is essential. 

If there is opposition to digitisation, managing conflicts early and effectively is essential. I believe strongly in creating a learning culture built on trust, freedom, and accountability. People tell me that I energise my teams and enable them to seek more. That is possible through a robust digital culture. 

 (Source: https://www.worldbank.org/en/results/2024/01/18/digital-transformation-drives-development-in-afe-afw-africa)

Globally, the region has one of the broadest digital gender gaps. There is a considerable disparity in internet use. According to 2023 GSMA data, African women are 37 per cent less likely than men to use mobile internet. Increasingly, in semi-urban areas and townships, Africans are building their internet infrastructure to connect the unconnected.

(Ref: Internet access reduced poverty by 7% in Nigeria and Tanzania in 2023 - World Bank | Business Insider Africa.) 

Telecommunication landscape

African nations are working hard to improve their telecommunications landscape through one Africa Network. Smart Africa, a group of seven heads of state, now has 40 member countries. The group has been at the forefront of tackling several digital challenges. One of the main aims of the One Africa Network is to make telecommunications efficient and affordable in all African nations in a bid to bridge the tech divide. 

Grooming tech-smart workforce

In Early 2000’s, As Pillar Head, I trained employees, suppliers, and distributors in three companies and created awareness of Muda (waste), Mura (inconsistency),and Muri (overburden). We organised many Gemba Kaizen (a Japanese term that refers to a philosophy of continuous improvement through various activities in the workplace) workshops in collaboration with the Kaizen Institute. The result was a major visible shift in making data-based communication and decision-making in the workforce. The employees could communicate in terms of concrete numbers and Key Performance Indicators rather than just anecdotal descriptions. 

Africa needs a transcontinental coordination framework for the technology agenda. There is space for robust technological development, and Africa is moving towards it. We recognise the need for highly effective regulatory bodies with communication and digital transformation capacity-building efforts.

Africa’s Transformation: Focus Areas

• Advantage of youth power
• Opportunities for building regional harmony, cross-border trade 
• Solidarity between African Union member states and cooperation between the AUC, RECs, and African Institutions, linking it to the Sustainable Development Goals.
• Expand safe digital transactions to revolutionise the financial sector
• Giving Internet access to the millions currently without it would result in significant gains in GDP, productivity and gender equality
• Encourage and trust the local workforce instead of para-dropping tech staff from other countries
• Inclusive, affordable skill development and vocational training for the blue-collar economy 
• A society that is transforming needs a change in mindset and collaboration among stakeholders across sectors
• I have always believed that healthy disruption to markets and business models ensures growth and transformation

Turnaround Techniques

I am always put in places with a perfect storm, and I have successfully managed to sail ashore safely with all my managers. Speed works. I use Blue Ocean Strategy techniques to achieve growth. More than the standard disruptive creation, where you disrupt something to create something, I believe in a more sustainable, non-disruptive creation. Nondisruptive creation is a way of growth without the pain of shutting companies or hurting communities that come with disruption. I like to encourage and empower. Do, decide, delegate, design – these are the 4 Ds I follow. When you trust people, you change lives, transforming the lives of thousands in the ecosystem.

My top priorities when I work towards turning around loss-making companies into viable businesses are restructuring operations by reducing fixed costs, identifying alternate supply sources, which lead to input cost reduction, protecting assets and  people, and tackling political crises to ensure seamless operations. Trusting local people is crucial. I groom them, give them opportunities, and gradually replace ex-pats with local talent. I do not believe in forcing anything on people. I would say no training is better than forced training. Values are fundamental – both personal and organisational. I often read Indian spiritual texts to tackle dilemmas. Value-based living and value-based thinking will never leave you alone. Don’t take yourself seriously; take yourself sincerely.

Despite all the socioeconomic factors, the African region will register second-fastest growth globally, with 40 countries set to achieve higher growth rates than 2023. 

(Ref: https://www.afdb.org/en/knowledge/publications/african-economic-outlook)

There are challenges in achieving sustainable economic and social transformation. The primary push needs to be for structural transformation. Sectors relying on traditional, low-productivity, low-skilled services will eventually have to be phased out. Strategic investments in key areas of Sustainable Development Goals include education, energy, productivity, technology and innovation. Africa needs to focus on its transport infrastructure to make the transformation wheels move faster.