African Trading Company

A proposal is made to gather USD50 per month for 24 months per 100,000 Africans living in the USA, and using the funds to start an investment group.

An interesting comment:

I will also suggest that it be structured not as an investment group or bank or other fiduciary institution, but as a trading company along the lines of the Sogo of Japan or Chaebol of Korea or even conglomerates of USA. This organisational strategy can help avoids some trade barriers such as undue or excessive regulation. It requires commitment to world standards in financial and logistics management. The mindset must be gradual domination of processing, marketing and distribution in a core set of technologies and in the associated products. Actual production should be co-ordinated with domestic suppliers and research in collaboration with domestic universities and colleges across Africa.

By sponsoring an apprenticeship system, it can ensue a steady stream of innovative human capital with hands-on knowledge come through the education system. Some will stay with the company. Others will set up on their own and may well become suppliers or marketers for the trading company. If and when it ventures abroad outside the African nation, it should ensure Africans are posted to manage the overseas business unit so that we can learn the intricacies of international trade. Within Africa, at least 10% of net revenues in each business unit should be provisioned for development of local community infrastructure or social services.

There are a number of commodities and associated technologies we can focus on:
1. Foods and beverages, waste management combined with electricity production, internet infrastructure, and education (see above) to secure the home front;
2. Essential minerals such as gold, crude oil, tantalum, iron ore, and so on to secure a sustainable foot-hold in international markets.

As it consolidates its presence in key product lines, governments and multinationals in many African and foreign countries may come to fear it and will then act to undermine it. For this reason, it may be better to focus initially on building/defending the African marketplace. The only sure way of doing this is to make Africans wealthy by encouraging a scheme of equity ownership. If you are concerned that some 'shareholders' will pervert your ideal of local enrichment, then start the trading company as a membership society, with members sharing net revenues in proportion to their trading activity.

This is the business model for my own company. It is early days for us, so I am glad to share it with you. I wish you well, yet, bear in mind: Africa's solutions are problems for the 'international community'.