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March 05, 2007

Information = access = money

Alex1 Reports of fighting in the east of Chad seem far away, N'Djamena is fairly calm, our work moves forward. The promise of oil wealth is little by little becoming real, at least for a few. I don't know if we'll change the country, or even build a semblance of what Chadians imagined liquid gold would bring, but one by one, we are linking Chadian firms to new opportunities.

I came to Chad to run an Enterprise Center, a place to train Chadian firms, but now I see our work very differently. The concept for our center was developed by Nkosana Moyo (former deputy director for IFC Africa) and based on the idea that small firms need four things to grow: access to information, access to training, access to finance, and a strong business enabling environment. Here's an example of another center in Kenya, based on the same idea. The theory makes sense: businesses need information, training, money, and a good context to thrive.

"Access to information" always seemed to me like the throw away member of the group. Yes, yes, I know, we live in the information age. Last week I met a representative of the Chamber of Commerce and he said: "Alex, we must have money for a resource library!" "Ok," I said, "for a start, has anyone even cracked open the five books we bought a few months ago?"

Another rep. wants to create a cyber café, "give people knowledge!" In the past few years I've taught countless people how to use the internet, but to those who aren't accustomed to computers, they use email sometimes (especially when I remind them in person there’s a mail in their box), or occasionally check a website.

So much to my surprise, as our program has evolved, "Access to Information" is turning out to be our most important role. Let me explain.

On the one side, Chadian businesses need information about how to access opportunities with ExxonMobil and other large firms. This is a classic example of access to market information, but it takes an unusual form in Chad. First of all there is the cultural divide between large firms and Chadian companies — people like to work with those they know and find familiar: for Texans, Chadians are probably not top of the list. Large firms also have unfamiliar standards to which Chadians must adapt and adhere. There is also the sheer problem of communication in a country that has no street addresses, few fixed phone lines, and paltry electricity (at last count World Bank Offices in Washington DC used more electricity daily than the whole country of Chad).

So what does access to information for Chadian firms look like? It means our team rides their motorcycles for days on end tracking down entrepreneurs, delivering them invitations to an ExxonMobil meeting. It means our staff knows that the red door down one alley is Oumar's transport business, that Madme Sonja now runs her shop at the far end of Shangua. It means endless cell phone bills, our team acting as intermediaries: problems with a contract, how about this payment?, how to do I approach the large firm? It means sharing information on foreign firm rules, how to structure bids. It means we are a physical place where entrepreneurs can come to find out what’s what.

On the other hand side, there is also an incredible need for large firms to have information on the range and quality of potential Chadian suppliers. Next week we are hosting a major ExxonMobil subcontractor who has never worked in Africa, and they are asking where do we start? International agencies knock on our door: "I have a road construction project, who does good work in this area?" "I have a transport problem, who can help?"

What does access to information for large firms mean? It means we have spent two years creating a database by hand of over 1,000 Chadian firms, information that you’d find in a phone book or on the internet in many other countries. It means we have an evaluation system, where we visit firms one by one, rank them, help them grow. It means we have the gritty knowledge of who’s who and what's possible here. In a place like Chad, this information is gold. Banks knock on our door: "Can we please have your lists?" It's a delicate area, I've locked our database, how do we manage this information fairly? Access to information. Access to information.

Somehow it works, even if only in our own small way. Information to connect Chadian businesses with large firms, and large firms with Chadian suppliers. Some people say I have little hope for Chad. Not true. I think Chadians are perhaps smarter than a lot of people, I think they are proud, I think they are resourceful. This country is a crossroads between the Muslim nomadic north and the agrarian Christian south. We have got caught in the violence of the region, Sudan, Central African Republic. This is not a place of stability or ease of communication and therefore we are building a means to connect the country, to link people through information, despite war, excess, and violence. I hope we are providing a structure to build a future on.

Alex2

Alex3

Photos are of an ExxonMobil supplier "Diagnose Auto." Photo credits Esaie N.

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I was very happy with your report. I came from South Sudan which badly need that sort of thing. I have an MBA from an Australian University but I find myself helpless in helping my people who come to me sseking a way forward. Can someone help me to help my people who have come out of a bitter war over the past 21 years in South Sudan?

Kind regards
Godfrey Ladu


Alex,
How fascinating your accounts of access to information in Chad are. As always, thank you for sharing and helping those of us who have become a bit parochial stateside to understand just a small piece of what others go through in participating in the business world.
Lyn


Alex,

I read this post last week and have been thinking about it. First, the descriptions of what it means to collect and provide business information is great. Every place is unique, but the information conundrum is common in developing countries. We see similar problems in South Asia.

Second, I thought your comments about what you do with the data is even more interesting. You said that you "locked" your database. To whom do you give the information? Why do you "lock" it? What do you lock vs. give away? Can you tell us more about this? It would seem to me that, although some detailed information could be kept confidential, the function of a donor-funded exercise would be to distribute the info as much as possible. Are you looking towards a service provider model to commercialize this information?

Look forward to your answer.

All the best,
Wendy


The "lock" on our information is not permanent nor total, we are developing the systems and grappling with questions of ethics and strategy. We certainly use our database regularly to let entrepreneurs know about opportunties. For now, information flow in this direction is as open as possible.

The more complicated question is what and how to share info about SMEs to banks and larger firms. We're often asked some version of: "Who are the best SMEs in this sector?" How do we respond objectively? Or we get questions like: "Who are the SMEs that work in this sector with annual sale above a certain amount?" This is a complicated question in a country where the identify of firms is maleable (don't want to miss out on an opportunity) and people sometimes keep two sets of books.

The question is also a strategy issue, because our center has started off as donor funded, but we are moving towards sustainability through fee generation. We have revenue both from the SMEs and the larger firms we connect them with. So the trick is how to put a value to this information, and share it wisely and ethically to support the overal development of Chad's private sector.


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