Page 3 - SA is open for business

SOUTH AFRICA INVESTMENT CONFERENCE 3

25-27 OCTOBER 2018

ack Ma is a self-made billionaire with
humble beginnings.
He was born in Hangzhou, in
the southeastern part of China
and was raised during the rise KEYNOTE
Jof communist China and its
isolation from the Western world. His parents BUSINESS
were traditional musicians/storytellers and DINNER
they didn’t make enough money to be
considered as middle class in those days. SPEAKER
After graduating with a bachelor’s degree in
English, and frustrated with his lack of solid
employment opportunities, Ma relied on his English
to teach at the local university he had attended a few
years prior, and to start a translation service business.
Upon his first visit to the US in 1995 as a translator, Ma
discovered the joys of the internet. After doing a search for
beer from various countries, he was shocked to learn that
there were no representatives from China online.
He immediately saw the potential business opportunities of
the internet and how it could facilitate the way small and
medium Chinese enterprises could do business with the rest
of the world.
Ma and his friends decided to launch a site about China and
Chinese products online. Known as Chinapage, the site listed
Chinese businesses and their products. Although Ma received
inquiries from around the world, the interest was marginal and
Chinapage struggled.
Following the Chinapage experiment, Ma took up a
government job, working for a short period at the Ministry of
Foreign Trade and Economic Cooperation in the latter half of
the 1990s. It was in this role that Ma encountered Jerry Yang,
a co-founder of Yahoo. The two became friends, and Jerry A FEARLESS JOURNEY TO
would eventually secure a Yahoo investment of roughly
$1 billion in Alibaba in 2005.
SUCCESS
internet to facilitate business activities for Chinese small and SUCCESS
In 1999, after leaving the government job, Ma tried his hand
at internet-based business ventures again. He gathered a
group of potential investors at his home and sold them on his
dream to found Alibaba with the goal of facilitating
international trade for smaller ventures based in China.
Alibaba was born out of Ma’s unfulfilled dream of using the

medium-sized businesses.
JACK MA CO-FOUNDED ALIBABA GROUP, ONE OF THE WORLD’S LARGEST
Becoming a teacher again
Ma has plans to return to education after Alibaba CEO E-COMMERCE BUSINESSES. ITS 2014 IPO IN NEW YORK SET A RECORD AS
Daniel Zhang succeeds him as chairperson next year – and THE WORLD’S BIGGEST PUBLIC STOCK OFFERING, RAISING $25 BILLION
he already has his lesson plan drawn up. He has plenty to
teach aspiring, young entrepreneurs. After all, his transition
from a cash-strapped amateur businessman into one of the fearless also makes people more optimistic, which keeps them Instead, he wants to teach others how to overcome
most successful entrepreneurs in the world is one that many going when life turns difficult, he added. challenges so that they’re prepared for the tough
would want to emulate. Ma’s journey in building Alibaba into one of the largest tech entrepreneurial life.
“Often, people don’t act on their ideas because they think firms in the world could be called a success story. But what he “We want to share with people what kind of mistakes we
society isn’t ready for what they have in mind. But it’s precisely did right to be successful is not something he’d want to share make. It’s in the mistakes and the lessons we learn that we
because there are gaps that entrepreneurs exist,” Ma said. with budding entrepreneurs, Ma said. make progress,” he said.
Entrepreneurs should get used to rejection, Ma said. “We will never teach people how to be successful. When As we face the opportunities and challenges of the fourth
Learning to handle rejection sets one up to be fearless, which people learn too many successful stories, they think they can industrial revolution, Ma’s story offers inspiration and direction
is an important trait that they should have, he explained. Being be successful easily,” he said. for a new generation of technology entrepreneurs.

n his interactions this past week with CEOs of top
international companies at the Forbes Global Forum Building momentum
in Canada, local businessman Sandile Zungu did not
hear one negative comment about South Africa.
“At worst, the comments are lukewarm; at best,
Ivery positive. And among the commentors are CEOs
of companies managing trillions of dollars in pension fund and confidence
money,” he said from Canada this week.
This bodes well for government’s Investment
Conference, which is being held as part of President
Cyril Ramaphosa’s plan to attract $100 billion in new
investments to the country over the next five years. appointments and, hopefully, the president will also the impact of protectionism,” he said.
Zungu, the chairperson of Zungu Investments appoint a permanent head of the National Prosecuting He believes China will be sending an impressive delegation
Company and newly elected president of the Black Authority (NPA) soon. to the Investment Conference following the signing of several
Business Council, applauded the panel that put together With Mboweni’s appointment, it is clear that government cooperation agreements between the two countries in
the Investment Conference, describing it as “opportune” in is sticking to fiscal discipline. The rule of law is seen as September.
light of the pending rise in US interest rates and the something that should work alongside fiscal Zungu also expects “oil money” from a country like Qatar to
strengthening of the dollar against the rand, which will put discipline, and a good person heading up flow to South Africa. Despite some geopolitical challenges in
pressure on emerging markets. the embattled NPA will go a long way Qatar, the country has been ostracised by its neighbours and it
“A flight of liquid short-term investments from to generate confidence in the will be looking to build new friendships.
emerging markets can be expected. In hosting the country. The automotive industry also affords a good opportunity for
Investment Conference now, South Africa Zungu refers to the low- investors. South Africa offers, through different support
demonstrates its seriousness in its attempt to hanging fruit when it comes to programmes and incentive schemes from the Department of
counter this obvious negative. It is an excellent attracting much needed Trade and Industry, support for automotive manufacturers
initiative by the president at this time,” he said. investment to South Africa. To building vehicles here for the local and export markets.
If government can demonstrate that it is serious him, that will come from the It is important to note that domestic investment is as
about creating the right climate to attract new Brics group of countries, essential as foreign investment. It has been said that South
investments, the conference will be a huge especially China. African corporations are on an investment strike. Zungu says
success, Zungu said. With the US’s move to South African corporates might argue against this, but a lot of
His opinion is that appointing Tito Mboweni as protectionism and the cash sits on the balance sheets of these companies.
finance minister was a stroke of genius. impact of that on different The next phase for Ramaphosa will be to persuade local
“Mboweni has the kind of personality that countries, China will companies to invest in the local economy.
inspires confidence. He is known throughout realise that one cannot Further to this, it is important that black businesspeople are
the world and he was governor of South keep all your eggs in one also seen to be creators of jobs, to be owners of
African Reserve Bank in the heyday of basket, and will therefore manufacturing industrial capacity and to be partners to foreign
our economy. Having him at National look to build new trade direct investors.
Treasury when you’re telling the world relations. “President Ramaphosa is building momentum in rebuilding
it should bring its money here is a “Pouring money into confidence in the economy, and initiatives like the Investment
great thing.” South Africa can be part Conference are all adding up to greater hope and to the
It is all about making the right of China’s insurance against benefit of all living in South Africa,” Zungu said.