Risks Management in West Africa & The MRU
As pointed out inter alia, West Africa is a region of great cultural and social as well as economic diversities. Hence there are risks very peculiar to the region and its people but all of them are, within best practice standards and due diligence parameters, manageable risks.
The ScanAfrik Consultancy provides project management support by combining local knowledge and understanding with our own expertise in project management and service delivery in complex environments.
Thus we are focused on the following areas of Risk Management in West Africa and especially in the MRU Confederation:-
- Facilitating political, commercial and regulatory liaison, including introductions to government officials, local businessmen, local agencies and authorities.
- Providing risk strategies encompassing political, operational and reputation considerations.
- Providing guidance on host-nation legalities such as local licensing requirements and import/export considerations.
- Identifying and conducting due diligence on local professional service providers that may be required.
- The identification and provision of appropriate logistical and life support, including infrastructure for office and residential premises and vehicles for transportation.
- Facilitating risk insurance and best practice management within subregional unions and confederations.
- Research, asses and advice on the implications of political, governance and potential terrorist activities in terms of Vulnerability Management in the West African and MRU subregions.
The Enterprise Risk Management Cube
Africa is endowed with a lot of Natural resources and a young Human Resource base yet has a lot of issues with Private Equity.
The poor state of Private Equity and its over-dependence on Foreign inputs and management are at the very core of underdevelopment on the continent.
Hence there is a situation wherein the Public Sector still is the key job’s provider and in as much as it is yet can be assessed as non-productive mostly. a good percentage of the continent’s human capital is engaged in either sedentary jobs that are mostly not wealth creating as they are not value-added jobs but mostly administrative duties, or if there is any production it is never translated into direct gains in capital from revenue. As a result, whatever wealth is produced is either slow or minimally accounted for in real income terms of not existing at all. This is one of the reasons for overdependence on foreign Aid and even corruption on the continent.
However recent trends indicate there is a change in the Private Equity landscape and more inputs are being made in Private Equity, whilst more countries are taking steps to improve on local content capitalisation through the establishment of Financial markets, stocks exchanges and such institutions that can in the near future capitalise projects from within the continent.
Compact with Africa Initiative
“In an interconnected world, the G20 must look beyond its membership to achieve its objectives of fostering sustainable economic growth and stability worldwide. To this end, engagement of the G20 in supporting developing countries, particularly in Africa, is crucial. That is why the G20 launched its Partnership with Africa. The central pillar of the Partnership is the Compact with Africa (CWA), established within the G20 finance track, to promote private sector-led development and improve the investment environment. This initiative is aimed to be coherent with and complementary to other initiatives to advance private investment, to increase employment and foster sustainable growth in Africa. With the establishment of the Africa Advisory Group (AAG) as a regular G20 working group, the initiative has been firmly anchored in the G20 finance track. It is currently co-chaired by Germany and South Africa.” About Compact with Africa
This initiative is a new Private Equity assurance conduit even though there is a level of Public sector participation.
The Human Resource Development Situation and Risks Management
The ScanAfrik Consultancy subscribes to the conceptualization below:-
“Human resources have two roles in risk management. First, people are a source of risk, e.g., shortage of employees, people doing sloppy work, an employee refusing to take on additional responsibility, or a key employee leaving two months after completion of a one-year training program. Second, people are important in handling risk, e.g., people using their ingenuity to solve unexpected problems, employees going the extra mile for the good of the organization, a key employee redesigning her own job to avoid unnecessary delays in getting work done, or an employee persuading a talented friend to apply for a position in the business.
Human resources include more than regular full-time employees. They include all management and labour personnel, family and non-family members, full-time and part-time people, and seasonal and year-round employees.”The Role of Human Resource Management in Risk Management
The Mano River Union states
A sub-regional market with approximately 45 million.
The Economic Community of West African States(ECOWAS)
An economic union with a population of over 335 million and a projected GDP of 7% pa.