Whitman School launches African Business Institute

In 1908, the best double-play trio in baseball was the talented Chicago Cubs infield of "Tinker to Evers to Chance." One hundred years later, the best double-play trio in American business schools may be Syracuse University's Stith to Koveos to Yourgobou.

The goal of the Chicago shortstop, second-baseman, and first-baseman was to put outrunners at first and second base on the same play. The object of the Martin J. Whitman School of Management trio is to enhance the regional business community's readiness to compete in the African marketplace while simultaneously strengthening the school's international business component.

Melvin T. Stith is dean of the Whitman School, Peter Koveos is chair of the school's Kiebach Center for International Business Studies, and Pierre Yourougou manages the new African Business Institute (ABI), which formally launched Oct 17.

The launch

The launch began with a half-day program at Whitman. Dean Stith offered welcoming remarks. Carol Pineau, a journalist who specializes in Africa, then showed one of her films - "Africa: Investment Horizon" - and offered commentary. A panel discussion, which included two African ambassadors, the Onondaga County executive, and the senior vice president of the Empire State Development Corporation for International Economic Development, followed. The program concluded with a luncheon and keynote address by the assistant U.S. trade representative for Africa.

Sponsorship

ABI, which is funded in part by a two-year, $177,000 grant from the U.S. Department of Education, is designed to promote doing business in Sub-Sahara Africa. The program is jointly sponsored by the Kiebach Center, the Central New York Technology Development Organization, the Central New York International Business Alliance, the Onondaga County Division of Economic Development, and the Greater Syracuse Chamber of Commerce.

The program

ABI plans to help regional businesses to develop business models in order to penetrate the African market. The program will include short courses, seminars, workshops, one-on-one advisory services, and trade missions to Africa to help give area businesses a competitive advantage and to enhance Whitman's African curriculum, research, and publishing through the African Business Information Center.

"Why Africa, Why Now?

"Africa is truly an untapped market, ripe with opportunities, and underestimated in its potential," says Stith. A statistical snapshot confirms Stith's comment. Sub-Sahara Africa has 781.3 million people (2006), an annual population growth rate of 2.5 percent, a collective gross product approaching $1 trillion, and a growing literacy rate that is nearly 70 percent (2006). Further, "2009 economic growth is projected at 6.5 percent," says Florizelle Liser, the assistant U.S. trade representative for Africa, office of the United States trade representative. Liser adds that "African subsidiaries of [western) corporations return 25 percent on their investment versus 12 percent worldwide."

Liser also points to the African Growth and Opportunity Act (AGOA), which provides trade preferences for quota and duty-free entry of certain African goods entering the United States. First passed in 2000, the law, which now covers 41 countries, has now been extended to 2015. In addition to textiles and apparel, AGOA countries are also exporting cut flowers, horticultural products, autos, and steel. In 2007, Liser noted that "exports from New York State to AGOA countries totaled $550 million."

And finally, governance in Africa has improved. Pineau says that "democracy, which is the oxygen for private enterprise, is now enjoyed by 75 percent of Sub-Saharan African countries."

While all eyes are currently focused on doing business in China and India, the Whitman School is betting that the next focus on developing countries will be Sub-Saharan Africa. ABI is designed to put area businesses and Whitman's faculty and students in the position of competing globally.