How to build a global business
Strive Masiyiwa
Image: Photo by Ron Giling of Māori man with mobile phone in 2018, during Waitangi Day, the national day of New Zealand, commemorating the signing in 1840 of the Treaty of Waitangi. // Strive Masiyiwa Social Media (Facebook)
__How far can YOU go?
"Your story has gone around the world and we want you to help us set up a business in New Zealand." The man talking to me was Bill Osborne, a Māori from New Zealand. Bill was a legendary member of the revered All Blacks rugby team of the 1970s.
"Do you have a cell phone license?" I asked.
"No, not yet, but we believe it might be possible to do what you did in Zimbabwe."
"Oh, I don't want to fight another protracted legal battle," I said.
"We don't think it is necessary to go to court. We think we have a rock-solid case to ask for a license under the provisions of an old treaty called the Treaty of Waitangi of 1840."
"Give me a few days, Bill, I just need to consult our Father."
"Oh, I did not know your father was involved in your business?"
"I suppose you could say that." (How else was I to tell a total stranger that I wanted to spend some time praying about it?)
After a few weeks of prayer and fasting, I bought a ticket, and headed down to New Zealand, a 24+ hour trip from South Africa via Australia.
There I was met by a “Kiwi” investment banker who has become a lifelong friend and dear brother, Simon “Tex” Edwards. (New Zealanders are affectionately known as “Kiwis”).
Tex had made a lot of money investing for himself and his firm at the Econet Zimbabwe IPO and was amongst the people encouraging me to look beyond Africa for opportunities. His phone call (in the year 2000) is how it had all started.
“Strive, our country is issuing new mobile licenses in a public auction,” he’d said. “I have met a group of indigenous Māori people who believe they should be allowed to bid for such a license, but they have no idea how to do it. Since they don’t yet know anything about mobile phones, I suggested they work with you.”
“New Zealand?! That is too far, mate!” I retorted. “And besides, I don’t have the money.”
“Strive, you should at least hear them out. They have money, and they just need a technical partner to operate the network. You will get some carried interest with your equity.”
Tex was very persuasive and besides, I had never been to New Zealand. He explained that getting the license would require a special application on the grounds that the indigenous Māori people had a right to share in natural resources.
As in Botswana a few years before, we had to go head-to-head in an international public tendering process with some of the giants of the industry, such as Vodafone, Orange, and Telstra. It seemed a long shot… but we miraculously prevailed and thus was born Econet Wireless New Zealand!
With a small team of my engineers from our South Africa office, we set up our office in Auckland, New Zealand. Over the next few months, we recruited staff and built a network, just like we had done in Africa!
For the next decade, we built it into New Zealand’s third national operator. Raising capital for it was always tough and I had to bring in US investors who had operations in South America. They invited me to swap our shares into their business, and I became a minority partner in a bigger business.
I eventually sold my shares in that business and directed the capital into new ventures in Africa. We did “handsomely from that investment!” as some like to put it.
The company in New Zealand changed its name after we became a minority shareholder. It continues to operate to this day as “2Degrees”. Here’s the website: https://www.2degrees.nz/about-us
Yes, it was founded by some intrepid Africans!
“Ask of me, and I will give the nations for an inheritance, and the uttermost parts of the earth for a possession.” [Psalm 2:8]
New Zealand was actually our second global business outside Africa. The first one was Econet Satellite Services UK, which I set up after I left Zimbabwe in March 2000. Today that company is Liquid Intelligent Technologies, part of our growing Cassava Technologies family of companies.
With just four employees in that early start-up, we obtained a license from the UK regulator which allowed us to operate an international earth station and to sell services in the UK. By the time I moved to the UK in 2010, those four founding staff members had grown to seventy people, and they were at the heart of a global business.
Today we have businesses across Africa, as well as Europe, India, the Middle East, South America, the UK, and the US. And I’m definitely not done... there's still China and Japan, as well as much more of Asia!
Why not, @LionCub?!
How far can YOU go?
3 Key Business Lessons
Embrace opportunities that challenge your geographical boundaries. Strive Masiyiwa’s journey illustrates the importance of looking beyond familiar markets to explore new potential. Entrepreneurs should actively seek opportunities that may initially seem daunting or distant, as they can lead to significant growth and innovation. The willingness to partner with local experts and adapt to new environments can unlock doors to markets previously thought unreachable.
The significance of strategic partnerships cannot be overstated. Masiyiwa’s collaboration with the Māori people highlights how aligning with partners who possess local knowledge can enhance business prospects. Business leaders should prioritize building relationships that leverage diverse strengths, allowing for unique offerings that can differentiate them from larger competitors. This cooperation is essential, especially when entering unfamiliar industries or regions.
Having a steadfast support system can provide the backbone necessary for navigating challenges. The role of mentorship and collaboration, as seen through Masiyiwa’s relationship with Tex Edwards, demonstrates how critical guidance can influence decision-making. Entrepreneurs should seek mentors and advisors who can provide valuable insights and encouragement, helping them overcome obstacles and make informed choices about strategic expansions or ventures.
Afterthoughts
“Don't wait for the right opportunity: create it." - George Bernard Shaw
African entrepreneurs should not be afraid to build global companies, or companies that operate globally. This is central to demonstrating to the world that we, too, can compete at the highest level globally.
There are many global companies from Africa, particularly from South Africa. Nigerian entrepreneurs as well as those from Egypt and Morocco have also begun to build a global presence. But we can and must do more.
It is not as hard as some people think, but requires entrepreneurs who are confident in their own abilities and have very strong execution skills, resilience, and energy!
To imagine that I made that 24+ hour trip to New Zealand (with a 10-11 hour time difference) almost every two weeks sounds insane, even now. Thank God, I was much younger back then! This was then our furthest business foray outside the continent of Africa.
If you have been a FB follower a long time, you might recall that I shared some of this story here more than 10 years ago. New Zealand was an amazing country, with some of the most friendly people I have ever met. They welcomed us with open arms, even though we were a young company from Africa.
Long ago I wrote a post entitled “Buying and selling businesses is also part of business.”
Every single year, big global companies like Nestle, IBM, and Unilever buy and sell businesses. Sometimes they sell popular businesses that they have held for a long time. They do it without being sentimental or emotional about it, even though staff in those businesses might feel let down. This is all business.
I have both bought and sold businesses in my career, and it is always for any number of strategic reasons. A mature entrepreneur is one who is not emotional or sentimental.
I have sometimes sold businesses that I started, or held for many years. This often allows us to recycle our capital into areas that give us better growth, or fit into the direction we want to go.
I loved our business in New Zealand, but it no longer fit into our strategy, so I said my goodbye and left it in the hands of those who were better placed to develop the asset.
Being successful in your own home market does not guarantee success in a foreign market, particularly if you are a person who relies on having powerful political connections. From the outset, I decided that I wanted to be successful without the need for powerful political connections. This really helped me as I entered markets where I just did not know anyone who could help me.
To do this, you must be confident about your products and core skills. It's hard to do, but if you appreciate it from the outset, it will do you well in the long run.
If you get angry at seeing foreign-owned companies in your own country, then you have declared that you yourself don’t want to see companies from your own country getting into foreign markets.
One day I was visiting one of our operations and was meeting local staff. When I asked some of their leaders about problems, they said, “We don’t want to see managers here who are not from our country.”
“Does that mean, I cannot deploy some of you to other countries, if you are good enough?” I shot back.
Silence.
“You see, I run a global company and my interest is to deploy my best people wherever they are needed. I need you guys to see yourselves as part of a global operation.”
After a while a young woman stood up: “Mr Masiyiwa, I want to go wherever this company can deploy me. I’m even studying some foreign languages.”
As I hope most of you were aware, the AI Impact Summit was held 16-20 February in New Delhi, India. Some of our company's top leadership attended and we had a strong presence there. I understand it was very exciting.
One of our most important businesses, Cassava Technologies India, is located in Pune and employs 140+ people. I'll write more on this soon.
Though also a relatively long (12-15 hour) trip from Africa… India is one of the most important markets in the world!
You don’t have to have a really big business before you can expand it continentally or even globally, particularly in the digital age. To begin with, you must have a clear motive for doing it and have a deep understanding of what is involved.
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