The Sunday Mail
Manyika Kangai
In 1999, a former English teacher-turned-entrepreneur founded his third business, a China-based business-to-business (B2B) marketplace website.
The business raised US$5 million from Goldman Sachs and US$20 million from Masayoshi Son’s SoftBank.
In 2014, the company listed on the New York Stock Exchange (NYSE) and completed the largest initial public offering (IPO) in history, raising US$25 billion, which by December 2019 was considered the second-largest IPO.
Today, the business has a market capitalisation of US$558,6 billion and the founder has an estimated net worth of US$38,8 billion, making him the richest man in China (as of April 2020).
The business is Alibaba Group Holding Limited and the founder is Jack Ma.
In 2017, Jack made his first trip to Africa as a special advisor to the United Nations Conference on Trade and Development (UNCTAD).
He visited Kenya and Rwanda, where he says he was so inspired by the personal stories of African entrepreneurs that he formed the African Netpreneur Award through his foundation — the Jack Ma Foundation.
This has become an annual initiative where 10 finalists are chosen and given prize money.
The inaugural competition in 2019 saw more than 10 000 applicants.
The 10 finalists shared US$1 million.
In 2018, he visited South Africa and Rwanda.
In 2019, he visited Ethiopia, Ghana, Nigeria and Togo, while in 2020, his foundation and the Alibaba Foundation donated protective personal equipment (PPE) worth millions to help African countries fight the coronavirus.
Why the interest in Africa?
With statements like “Today’s Africa is the China of 20 years ago”, it is evident Jack Ma believes in the potential Africa has.
In 1999, China had a population of about 1,25 billion, GDP of about US$1 trillion and 8,8 million internet users (0,7 percent internet penetration).
Today, Africa has a population of about 1,3 billion, GDP of about US$2,5 trillion and about 525 million internet users (40 percent internet penetration).
With the global average for Internet penetration at around 63 percent, a young growing population and smartphones per capita increasing, Jack Ma sees the “Africa Opportunity”.
Big Tech sees it, too.
Microsoft has introduced its cloud technology and has opened data centres in Cape Town and Johannesburg.
Facebook is enabling start-ups that are building cheap internet and constructing an undersea cable called Simba to connect Africa and drive down bandwidth costs.
Google has its Google for Startups accelerator and is also constructing an undersea cable called Equiano from Portugal to South Africa.
Amazon has had a development centre in Cape Town since 2004 and has recently launched its first Africa data centres there.
Netflix has been available to every African country since 2016.
In 2019, African startups raised US$2 billion in equity funding.
Africa is the new tech battleground.
What does Jack Ma want in Africa?
Is it just philanthropy or business, or both?
Is he just using philanthropy to build guanxi (relationships) so he can get in on the “Africa Opportunity?”
Time will tell.
He is a very wealthy man and an inspiration to entrepreneurs, so it is possible that he wants to focus on philanthropy.
However, Confucius once said, “An army can conquer a general, but no man can rob one of his ambition.”
Jack Ma may be looking for a 1999 African version of himself to invest in and see if he can do it again or to simply expand his empire.
Whatever the answer, is Africa positioning itself to take advantage of the opportunities that will arise?
One thing is certain: A digital revolution in Africa is upon us and 20 years from now, the world will be talking about African unicorns and billionaire African founders.
Manyika Kangai is a fluent mandarin-speaking Zimbabwean who facilitates and advises on China-Africa trade and investment deals and invests in African businesses through structured trade financing, private equity, venture debt and venture capital. He has been involved in China-Africa trade and investment deals for over 15 years.
He holds a Bachelor of Economics degree in Finance from Donghua University in Shanghai, a certificate in Early Stage Investment from University of Cape Town (UCT) Graduate Business School and a certificate in Private Equity and Venture Capital from Harvard Business School in Boston, Massachusetts. He can be contacted on [email protected]
