CI AS A MEANS TO ENHANCE COMPETITIVENESS IN AFRICA Adeline du Toit University of Johannesburg, South Africa

AGENDA Economic & political overview of Africa Need for CI in Africa Establishing a CI culture in Africa CI practices in South Africa Recommendations

Africa is a myriad of people & ways. Africa is change. Africa is contradiction. Africa is not for sissies

BUSINESS ENVIRONMENT IN AFRICA Growth rate –2003: 4,1% –2004: 5,1% Return on equity on individual investments –4 X higher than G-7 countries –2 X higher than Asia Huge market potential –850 million people Foreign direct investment –Political instability Quality and delivery requirements

REGIONS NEW PLAYERS IN COMPETITIVENESS

AFRICA IN THE GLOBAL ECONOMY

NEED FOR CI CI fragmented Nepad Pressure to liberalize trade Open up domestic markets to international competition

CI CULTURE Awareness of CI Culture of competitiveness Zambia – Client satisfaction Morocco – National CI System Appropriate education about CI South Africa: gateway to Africa

CI PRACTICES IN SA Competitiveness a topical issue Strong case for CI as instrument to enhance competitiveness Global competitive rankings –2003/2004: 42 nd out of 102 economies –2004/2005: 41 st out of 102 economies Mid 1990s CI introduced Growth not fast – few SCIP members Inhibiting factors: cost, value difficult to assess Forums established: SAACIP CI Consultancies Since 2000, CI awareness, practices increased CI education

CI IN MANUFACTURING INDUSTRY Largest industry in South Africa Questionnaires sent to 108 enterprises (randomly drawn) 78 respondents (72,2%) returned completed questionnaires

CI ACTIVITIES

TECHNIQUES TO COLLECT DATA

INFORMATION SOURCES REGULARLY USED

TECHNIQUES TO ANALYZE INFORMATION

CI DIVISION REPORT TO

EFFECTIVENESS OF CI SYSTEMS

HOW CEOs VIEW CI

OTHER FINDINGS CEOs are regularly interviewed to understand their needs12% Use information that is transformed orally in organizational communication networks 50% Company intranet is used to disseminate information12% Senior management is directly involved in the CI function10.7% Top management use information in decision making87%

CI IN SA COMPANIES Questionnaires to companies 120 (4,87%) questionnaires were received Findings: –Planning & focusOK (B) –CollectionOK (B) –AnalysisBad (C-) –CommunicationNot good (C) –Process & structureNot good (C) –Awareness & cultureOK (B) –Viviers, Saayman & Muller, 2001

RECOMMENDATIONS CI is necessary –More competition in global business environment. SA managers in general recognize need to better integrate CI in business processes CI as strategic management tool must form part of efforts to enhance competitive behaviour of African companies Commitment of government leaders in a CI campaign –Database on intelligence expertise –Publication of CI articles on government web sites –Professional organizations (SCIP, SAACIP) Co-operative ventures between African countries should be explored

CONCLUSION SA dominates CI scene in Africa –Superior technology –Business knowledge –Information infrastructure –Financial strength Other African countries lack adequate CI capabilities CI could enhance competitiveness in Africa Benefit development efforts of African nations Challenge to develop global competence Educate governments about the importance of CI

THANK YOU Africa is the birth of mankind. Africa is the land of my ancestors … but I hardly know this place at all. –Teresa Carmichael, Managing diversity in Africa Doing business in Africa will be a challenge but if one embraces the challenges then the opportunities are greater here than almost anywhere else. –John Luiz, Managing business in Africa