By Bas Vlugt, Posted on Wednesday 13 February 2008 found at africanews.com
[Interview] Warren Heaps is co-owner of Birches Group LLC, a small
specialized market developing consultancy focused on small and developing
markets. The company conducts commercial survey on each African country
among others. AfricaNews.com spoke to him. What is your personal interest in Africa?
photo: Eric Nathan
Africa investments SA
‘On a personal level, Africa is one of the places I have yet to visit but
has always been on my list. I will go to Accra for the first time in June,
and hope to learn much more on a first-hand basis in the future. As
part of my work, I am focused a lot on Africa and have immersed myself in
many of the issues that exist there.’
What does Birches Group LLC do?
‘Birches Group is a specialized HR consultancy focused exclusively on
developing markets. We are the only commercial survey provider that covers
every African country. Our four founding partners worked together for over
20 years as UNDP staff before Birches Group was founded as a private
consultancy in May of 2005. We have extensive knowledge of the labour market
trends in Africa and the challenges that employers, large and small, face in
determining proper remuneration.
In many African countries, it is common for employers to provide non-salary
compensation, such as allowances, housing subsidies, transport subsidies,
food subsidies, loans, etc. Our survey methodology captures each of these
unique and important elements in developing the total remuneration package
present in the market.
We strongly believe that in small and medium sized developing countries, the
labour market characteristics of leading employers form the benchmark to
which others should compare. Therefore, we survey leading employer from both
the private sector and the international public sector. Our surveys are the
only ones which combine private and public sector data.
Some companies might question whether this is really the best way to conduct
a survey. Based on our years of experience in these markets, we are
convinced more than ever, that there is a convergence between private and
public sector employers, and both groups are fighting for the very best
talent, which in many cases, is in extremely short supply, and it is not
uncommon for employees to switch between sectors. International public
sector employers, such as embassies, development banks, multi-laterals and
NGOs have oftentimes been well-established in developing countries and are
considered to be employers of choice. Private companies can no longer afford
to ignore these organizations as the hunt for talent becomes more and more
challenging.
In addition to our labour market data, we also provide HR consulting
services in the areas of expatriate compensation, job design, job
evaluation, organization design, competency modelling and performance
management.’
How does private sector investment in African private sector
contribute to the development of the African economy?
‘The sectors present in Africa, especially in smaller countries, are
usually focused around natural resources, consumer products, financial
services and technology/telecom. These are the four areas that are often
first to emerge as an economy develops, creating jobs, and therefore
creating demand for products and customers for the banking system. One of
the trends I've been following is in the area of mobile telephones. The
expansion of regional mobile telecom companies, like MTN and Zain, has been
quite profound, and is now being seen in many parts of the world (for
example, Caribbean, Middle East, Central Europe, etc.). There is much debate
about whether the increased penetration of mobile phones is necessarily a
good thing for the people in these markets. My perspective is that it has a
great enabling effect, as long as the cost is managed so as not to interfere
with basic necessities. Having the ability to reach out and be reached opens
new horizons for aspiring entrepreneurs. It also allows families to remain
in closer contact even if separated by great distances.’
Which 5 African countries are best to invest in in 2008 and why?
‘I do not normally follow African investment opportunities directly. That
said, based on the business activities we've seen, there are several
countries where there is a lot of business activity. We've seen up-ticks in
activity in Angola, Nigeria, and Ghana, with lot's of investment from the
outside. There is also a hot market in Sudan (partly I suppose due to
sanctions related to Darfur). Another market which is really taking off is
Ethiopia.’
Can you please give 1 great African business case of yours?
‘We have been working with a company in the natural resources industry to
provide them with key labour market intelligence related to their expansion
into several African countries. The expansion markets are small, and their
operations will create many new jobs. By consulting with us before making
their acquisitions, they were able to incorporate rich labour market data
into the negotiations that determined the final price.
We are also working with a leading international organization to conduct a
market survey in Cairo, which we believe will be the benchmark survey for
that market. Following a competitive bidding process, we were selected to
assist the client due to our deep knowledge of African and Middle Eastern
markets.’
www.birchesgroup.com
