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Questions and Answers with Dr Claudia Manning, Managing Director of ECIAfrica

July 2010

Claudia

Following the recent announcement that ECIAfrica has joined forces with Sangena Investments to provide new leadership at ECIAfrica, this question and answer session with Dr Claudia Manning provides some insight into the thinking behind this decision and the work of ECIAfrica.

 

1. Describe why Sangena became a partner in ECIAfrica. What value did you see?

Sangena Investments is a South African consulting and investment company with strong expertise in economic development, infrastructure finance, and industrial and trade policy issues.  As Sangena we were attracted by ECIAfrica’s hands-on approach to development, and its strong implementation focus. Whilst we at Sangena primarily focused on policy and strategy advice, we were attracted by ECIAfrica’s track record in providing impactful development services. To us, this was exciting in that it allowed us to become involved in a part of the development industry where real impacts are felt - from designing a solution to implementation.  ECIAfrica also has an excellent track record in areas we considered strategic for the development challenges faced by South and Southern Africa, including enterprise development, agriculture and agribusiness, public planning and administration, and policy and governance.

2. Define ECIAfrica’s geographic area of responsibility

ECIAfrica is based in Johannesburg, South Africa, from where a large share of our revenue emanates. However, we do a substantial amount of business in the Southern African region, in what is known as the Southern African Development Community (SADC). Although we have worked further afield (such as in Ethiopia, with DAI on the Urban Gardens Programme), we tend to confine ourselves to the region, where we have a stronger appreciation of the dynamics, and have a strong network of associates.  ECIAfrica also benefits from collaborating with DAI in the region, leading on some and acting as sub-contractor on others. 

3. What are the most pressing development needs in South Africa?

South Africa is characterized by high levels of urban and rural poverty, unemployment which stands at over 25%, as well as continued marginalization of historically disadvantaged people 16 years after the advent of democracy. Much of this legacy is manifested by the massive disparities in access to services like education, health and other public sector services.

One issue in particular which has received global attention is the level of HIV/Aids in South Africa – at 5.7 million people the fourth highest number in the world - with young people being the most vulnerable.  It is heartening to read reports recently, though, that suggest that the rate of infections amongst young people is slowing.

Effective delivery of public services remains a serious challenge, and over-burdened, under-resourced local authorities are really struggling with service delivery. Their problem is exacerbated by widespread reports of maladministration and graft within the public sector. Fortunately, the Government appears quite committed to rooting this out, and a number of high profile initiatives are underway to more effectively monitor public service delivery.

4. Being Johannesburg-based, what can ECIAfrica effect that development firms outside South Africa might not be able to?

ECIAfrica has an impressive track record.  We have conducted more than 250 short- and long-term assignments in 18 countries in sub-Saharan Africa. Our 85 African employees provide economic and management development consulting solutions that are informed by our deep understanding of the political, social, and economic dynamics of the countries in which we ourselves live and work.

ECIAfrica has structured its services to address the range of development challenges in South Africa.  With regard to infrastructure development and capacity building for public administration, we are working closely with a number of the most critical government departments, such as education, health and public works. In terms of enterprise development, we have implemented highly successful business linkage programmes between black suppliers and the private sector in a number of sectors such as tourism, the manufacturing sectors, agro-processing and mining.

On policy development and governance, ECIAfrica provides strategic support to the public sector and focuses on building effective, transparent and accountable governance and civil society, as well as the promotion of effective policy, planning, budgeting, and management.

With regard to agriculture and agribusiness, ECIAfrica has extensive experience in working with rural communities, and offers various services in support of rural development. We have managed small farmer linkage programmes across South Africa and the region, and have implemented one of the few successful programmes internationally which has resulted in private investment in community-owned land. The MABEDI programme is designed to increase the growth of selected commodity value chains while creating business opportunities and capabilities of small- and medium-scale farmers and entrepreneurs.  Our “Community Private Partnership” (CPP) programme (piloted in the MABEDI programme) is one that we are immensely proud of, as it has unleashed hundreds of millions of rands of investment in rural areas around South Africa, and created thousands of jobs in economically depressed communities.

5. ECIAfrica has a long history of working with the South Africa government. What is that like?

Since its inception in 1994, ECIAfrica has always had a diverse set of clients.  Our clients include International Donor Agencies such as the European Commission, World Bank, IFC, DFID and SIDA); Trusts and Private Foundations such as the Ford Foundation, Bill and Melinda Gates Foundation, WK Kellogg Foundation and the Soros Foundation; a variety of Host Country Government Organizations; as well as the Private Sector (such as ABSA Bank, First National Bank of South Africa, Hollard Insurance, MTN and Edgars Stores).  We have worked extensively with the South African government through e.g. the National Department of Housing, National Treasury, Mpumalanga Departments of Education and Public Works, KwaZulu Natal Department of Transport, as well as the Department of Provincial and Local Government. 

The Business Trust, a partnership between government and the private sector, has been a very important and strategic client for ECIAfrica, in fact several of our most innovative programmes have been funded by the Business Trust over the past decade. We are also fortunate to have a strong relationship with the South African Government’s National Treasury (one of the most highly regarded Treasuries internationally) for whom we have managed capacity building programmes within several government departments.

A number of us at ECIAfrica have strong links to the South African government.  I  am a member of the Presidential BEE Council, tasked with advising the South African President on matters pertaining to Black Economic Empowerment; and am also a member of the Board of Directors of the state-owned Development Bank of Southern Africa (DBSA). Bahle Sibisi is Chair of the state-owned South African Bureau of Standards (SABS), and John James, the Chief of Party of the South African International Business Linkages Program (SAIBL), serves on the National Small Business Advisory Council.  Through our respective roles on these councils and the variety of programmes that we operate with government, we continue to grow and strengthen this relationship.

6. How serious is South Africa - and South Africans of all races - about complying with BEE, both in fact and in spirit? What will ECIAfrica’s role be in that?

There is a robust debate taking place within South Africa on the effectiveness or otherwise of the current approach to Black Economic Empowerment, with most critics arguing that very little transformation of the economy has in fact been effected, despite the policy being in place for several years. Ownership of the economy remains largely in white hands, and corporates are criticized for adopting a ‘tick-box’ mentality, which allows companies to earn BEE points without effecting any real changes to the operations or control of their companies.   

ECIAfrica has a strong track record in promoting the BEE agenda in South Africa: one of our flagship programmes is the USAID-funded South African International Business Linkages (SAIBL) programme, which aims to link large corporates with black suppliers, in order to effect real transformation in procurement practices. We have implemented a similar supplier diversity programme with a multinational mining company, Lonmin, and intend to provide this service to other private sector clients. ECIAfrica is also advising the Department of Trade and Industry (dti) on methods of strengthening the Government Black Supplier Development Programme, using the lessons we’ve learned from our experience in this area.

Programmes such as these are critical to ensuring that small black companies are able to become core suppliers of large corporates, creating the real possibility of truly transforming the structure of the economy, whilst enhancing efficiency.   SAIBL is facilitating the formation of the South African Supplier Diversity Council (SASDC), which was recently launched by the US Ambassador to South Africa, Mr Donald Gips.   The SASDC is a corporate member-driven non-profit organization that will provide leadership and ownership of supplier diversity as an issue of national importance.  The Council will drive the agenda on supplier diversity as the process of integrating a growing pool of competitive black suppliers into corporate supply chains, using targeted procurement and enterprise development to achieve this.

7. South Africa just hosted the FIFA World Cup. This might be a stretch, but do you think the World Cup has affected southern Africa in a way that might smooth the road for more effective development? It really seemed like an event that brought people together, raised spirits and hopes, and focused attention on the southern part of the continent.

I don’t think it’s a stretch at all! First I should say that all of us at ECIAfrica are feeling mighty proud of ourselves for having successfully hosted the Soccer World Cup! Just being in South Africa during the past month has been extraordinary, but I was fortunate enough to attend a few games, including the opening game, and the atmosphere can only be described as electric. It’s a great shame that South Africa did not make it very far, but as the host country, South Africa won hands down!

Of course, the real question is what the longer term impact will be for South Africa and the rest of Africa. I think it was President Zuma who said that the World Cup had altered international perceptions of Africa from a habitual recipient of aid money, to a continent that is capable of making things happen… South Africa invested approx R40 billion in infrastructure in preparation for the tournament, and the people of the country are left with upgraded highways, public transport systems, and world class stadiums. I am confident that the continent can build on this legacy in making things happen - not just in the sporting arena but in addressing the other pressing development challenges facing us. Harnessing the energy, focus and determination that allowed us to be World Cup ready will be critical to leveraging the impact of the World Cup into improving the lives of ordinary people.