Brand Aid, Not Band-Aid

Close your eyes and think of Africa as a place to do business. What images spring to mind? Poor, corrupt and hopeless? Or a developing market with huge untapped potential? Too often, it's the former, which is one reason why the whole of Africa received just 3% of the world's total foreign direct investment last year. But some African countries, hoping to get a more upbeat message across to a skeptical world public, are working to change their image. Last month, the Tanzanian government hosted a two-day international conference in Dar-es-Salaam devoted to its "nation-branding" strategy. Botswana, too, recently announced plans to start working on a branding project of its own.

Nation branding is controversial. In the U.K., the "Cool Britannia" campaign started by the British government of Tony Blair in the late '90s was quickly ridiculed and dropped. And focusing on image in Africa seems particularly out of place given the life-and-death issues afflicting much of the continent, from extreme poverty and malaria to unclean water and war. But while slick marketing exercises won't cure Africa's chronic ills, they have their uses. Proponents of nation branding say that it's a vital step for poor or long-neglected countries to raise their profiles in today's global marketplace, where everything from holiday packages to call centers is theoretically up for grabs. "Because of globalization everyone is competing for a share of the tourists, a share of the consumers, a share of the marketplace. Everyone is jockeying for attention," says Simon Anholt, a London-based international branding consultant. "If you don't have a strong independent national brand you shoulder the burden of all the negative images."

The United Nations agrees. One of its agencies, the World Intellectual Property Organization, has begun actively helping developing countries around the world to brand themselves and their products better. When it's done well, nation branding can create strong and positive associations for consumers. New Zealand is a prime example: in 1999 it began cultivating an image of quality and freshness with the slogan "100% Pure New Zealand." The result has been a boost to its exports as well as to its tourism, making New Zealand a frequently cited case study for international marketeers.

South Africa has blazed the trail in Africa. In 1998, government and business came together to create a "Proudly South African" campaign. The logo can be licensed by companies for products whose content is at least 50% local, and who commit themselves to responsible labor and environmental practices. About 2,500 firms now use the logo, and are starting to enjoy the benefits. Take Granny Smith and Golden Delicious apples from South Africa. They were long sold in supermarkets in the U.K., the biggest export market, without any particular markings to show their origin. But last year South Africa's apple producers persuaded stores to let them stick Proudly South African labels on individual apples and their packaging. Nigel Mudge, chairman of the South African Apple and Pear Growers' Association, says the results are promising. After years of declining profits, the industry had some good news last year: sales to Britain jumped by 10% and revenues were up even more than that. "We don't know the exact impact [of using the South African stickers], but we do know that it made a difference," Mudge says.

It's all part of a greater focus on Africa. At the urging of Britain, Western governments are discussing proposals that could grant substantial debt relief. The continent's economy grew by about 5% last year, in large part thanks to improving prices for natural resources, including oil. Foreign direct investment in Africa, while still a trickle compared to the amounts flooding into China, is on the rise too. Last year it jumped by one-third to $20 billion; just last month, Britain' s Barclays agreed to buy South Africa's biggest retail bank, Absa, for $5.5 billion. John Varley, Barclays' CEO, justified the move by describing South Africa as "a dynamic economy with great growth potential."

Such confidence is priceless, but it needs to be earned. Successful branding is a long process. But for African governments, getting started is a sign that they're no longer willing to let others brand their countries for them.