An evening with Sergio Codenyer
Staff Writer | Friday November 25, 2016 17:37
Sergio Codenyer, like his European forebears of the 19th century, has identified Africa as a place with vast potential for trade. But whereas the men of the Scramble years had descended upon the continent in search of raw materials, which were needed in insatiable quantities for their industries, Codenyer preaches a new kind of trading, fuelled by advances in technology.
He sees opportunities for African entrepreneurs linking up with the likes of Coca Cola, Planet Earth and the Neo Geo through a business model he calls ‘Social License to Operate’, or ‘SLO’ for short. It is a marketing gimmick borne out of a desire to reach out to large number of people.
He talks from experience, as a few years ago he was the public affair and communication director for Coca Coca covering 13 Sub Saharan countries. He developed SLO through which his team came up with the idea of reaching out to five million women entrepreneurs in Africa selling Coke. The challenge was to give market access to these women through training and skills development, as well as marketing support.
Through the 5By20 project, which was about ‘removing barriers that women entrepreneurs face when doing business’, Coke trained such entrepreneurs in marketing and distribution skills, and rolled out branded merchandise that included cooler boxes, gazebos and table cloths.
They improvised on costs, painting red the tables, chairs and vans of the vendors that sold or distributed their products.
They also encouraged their clients to form support networks, where they met regularly to share ideas and experiences.
The 5BY20 was very successful, he says. “We were not only selling a mass product,” Codenyer says, adding that, “It was our way of giving back to the community, putting food on the table of millions on the continent”.
But what is the difference between SLO and Corporate Social Responsibility (CSR)? Isn’t this just yet another scheme by corporates to rake in money from communities while pretending that they are giving back?
CSR does not work, says Codenyer. “You see your beliefs don’t make you a better person. Your behavior does. After all the scandals involving the likes of BP, which resulted in so much pollution, anger, boycotts – costing the company billions of dollars in legal suits and compensation, who believes in CSR anymore?
There is always this lingering suspicion of ‘Big Brother’, who gives out handouts after making huge amounts of money from poor communities. This is what has happened to oil companies operating in many parts of the world.”
He continues, “A company which practices SLO is identified with the community. It is seen as a neighbour who provides support and comfort to fellow members of the community.
People are proud to collaborate with it, because they can identify with it psychologically. It is also important that any projects that receive political support are co-managed with the community as this gives them legitimacy”.
These arguments are backed by research. Research titled ‘From tolerance in 2011 to psychological identification at the end of 2015’ has shown that globally, 66% of consumers prefer to buy goods and services from companies that gave back in 2015 are willing to buy more of those products and services.
The percentage of consumers willing to pay extra for products and services from companies committed to social and environmental impact is also high, and rising. The global average was 55% in 2014, up by 10% in 2015. For Africa/ Middle East the figures in 2014 were 63%, up 10% in 2015; Latin America 63% (+9% in 2015); Asia pacific 64% in 2014 (+ 9% in 2015); and in the developed markets of North America (2014: 40%, up seven percent in in 2015) and Europe, 2014: 40%, up eight percent in 2015.
Codenyer is effusive about the opportunities that SLO presents to the continent. “It is time Africa invaded Europe with ideas.
The opportunities for Botswana are even more mouthwatering.”
He runs through colourful slides from Neo Geo and Planet Earth portraying Africa as a Garden of Eden.
Many of the slides are taken from Botswana. He would like to see these companies working closely with Batswana in promoting the country.
Botswana has a reputation of being peaceful and having used its resources prudently. Unlike in other parts of the continent, Botswana can demonstrate to the world that it has used diamonds for the good of its people.
“Your diamonds are clean and professionally cut and polished,” he says. That is the difference with diamonds from other parts of the continent where child labour is used and mining conditions are unsafe. SLO is not just about promoting products of big companies. Even small entrepreneurs can do it.
People will always buy things that they think are relevant or add value to their lives. It is all in the mind, a question of innovation.
Government can facilitate with approvals of licenses to operate, but after getting that license, what do you do with it? You still need the tacit of approval of clients to continue to flourish with licenses.
Codenyer speaks with pride of his experiences in Europe, where he saw large numbers of African entrepreneurs ‘invading the continent’ selling their wares.
“That’s the way we should go in Botswana. Let’s go out and sell our diamonds and wildlife anywhere in the world. Let us forge relationship with the rest of the world to market our produce, our country.”
He concludes: “Always remember to fall asleep with a dream and wake up with a purpose”.