Investing in marketing communications

"At the moment Africa is overwhelmingly perceived as a continent where warring factions and armies are ravaging starving people," says Edward Bickham, vice president of Anglo American plc. "That stereotype is so heavily ingrained that people do not see the continent as being about enterprise as well. There is a great trading and entrepreneurial tradition in many parts of Africa that does not come across at all."

We must stop complaining about Africa's marginalisation in the international media and do something about it. Effective communication of economic reforms by governments and regional economic communities is key. So too are initiatives that build capacity among indigenous media organisations to report on business in Africa.

Communication weak

Effective communication of investment climate reforms is key to promoting a more accurate understanding of the continent's business environment. Several African governments have instituted changes to improve their investment climates in favour of attracting increased local and foreign direct investment. Sadly these reforms have not led to significant increases in investment flows, principally because the communication of these has been so weak.

Multinational companies with institutional shareholders in New York, London, Frankfurt and other global finance capitals can also make a strong contribution by presenting their financial results from the continent separately from other regions of the world so that, as far as possible, shareholders can appreciate the value and worth of their investments in Africa. They are often reluctant to do this, however.

"Ironically, saying that we are doing well in Africa can have the effect of worrying investors," says David Hampshire, former chairman of Diageo Africa. "The City thinks that such profitable enterprises, like ours in Nigeria, must be unstable and unsustainable."

Leading from the front

Yvonne Johnston, CEO of the International Marketing Council of South Africa, is at pains to point out the importance of investing in communications.

"When you start with such a substantial negative, you need a big pot of money. You have to deal with your problems," she says. "Negatives happen everywhere - what you say about them is what counts."

Too few African governments have devoted adequate resource to communication. Brand South Africa is uniquely successful in Africa because it is a presidential initiative and commands significant resources from business and government as a consequence. African nations can learn from the South African example, by prioritising country promotion (not advertising and marketing, but more credible public relations) and contracting professionals to manage this