ENTREPRENEURSHIP IN AFRICA ENTREPRENEURSHIP IN AFRICA A Historical Approach Edited by Moses E. Ochonu Indiana University Press This book is a publication of Indiana University Press Office of Scholarly Publishing Herman B Wells Library 350 1320 East 10th Street Bloomington, Indiana 47405 USA iupress.indiana.edu © 2018 by Indiana University Press All rights reserved No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying and recording, or by any information storage and retrieval system, without permission in writing from the publisher. The paper used in this publication meets the minimum requirements of the American National Standard for Information Sciences—Permanence of Paper for Printed Library Materials, ANSI Z39.48–1992. Manufactured in the United States of America Library of Congress Cataloging-in-Publication Data Names: Ochonu, Moses E., editor. Title: Entrepreneurship in Africa : a historical approach / edited by Moses E. Ochonu. Description: Bloomington, Indiana : Indiana University Press, 2018. | Includes bibliographical references and index. Identifiers: LCCN 2017053534 (print) | LCCN 2017051094 (ebook) | ISBN 9780253032621 (e-book) | ISBN 9780253032607 (hbk : alk. paper) | ISBN 9780253034380 (pbk : alk. paper) Subjects: LCSH: Entrepreneurship—Africa—History. | New business Enterprises—Africa—History. Classification: LCC HD2346.A55 (print) | LCC HD2346.A55 E583 2018 (ebook) | DDC 338.642096—dc23 LC record available at https://lccn.loc.gov/2017053534 1 2 3 4 5 23 22 21 20 19 18 Contents Acknowledgments Introduction: Toward African Entrepreneurship and Business History Moses E. Ochonu Part I. Mercantile and Artisanal Networks 1 Globalization and the Making of East Africa’s Asian Entrepreneurship Networks Chambi Chachage 2 The Wangara Factor in West African Business History Moses E. Ochonu Part II. Female Entrepreneurs and Gendered Innovation 3 Women Entrepreneurs, Gender, Traditions, and the Negotiation of Power Relations in Colonial Nigeria Gloria Chuku 4 From Artisanal Brew to a Booming Industry: An Economic History of Pito Brewing among Northern Ghanaian Migrant Women in Southern Ghana Isidore Lobnibe 5 Interconnections between Female Entrepreneurship and Technological Innovation in the Nigerian Context Gloria Emeagwali Part III. Entrepreneurship as Political Initiative 6 Benin Imperialism and Entrepreneurship in Northeast Yorubaland from the Eighteenth to the Early Twentieth Century Uyilawa Usuanlele 7 Taking Control: Sonatrach and the Algerian Decolonization Process Marta Musso Part IV. Unconventional Entrepreneurs 8 Business after Hours: The Entrepreneurial Ventures of Nigerian Working-Class Seamen Lynn Schler 9 Ace Boxing Promoter: “Super Human Power,” Boxing, and Sports Entrepreneurship in Colonial Nigeria, 1945–1960 Michael J. Gennaro 10 Healing Works: Nana Kofi Dɔnkɔ and the Business of Indigenous Therapeutics Kwasi Konadu 11 Entrepreneurs or Wage Laborers? The Elusive Homo Economicus Ralph Callebert Part V. African Enterprise in the Shadow of Colonization 12 The Socioeconomic Bases of the Growth of Microentrepreneurship in the Igede Area of Central Nigeria in the Nineteenth and Twentieth Centuries Mike Odugbo Odey 13 Ethnicity, Colonial Expediency, and the Development of Retail Business in Colonial Turkana, Northwestern Kenya, 1920–1950 Martin S. Shanguhyia Epilogue: African Entrepreneurship, Past and Present Moses E. Ochonu Index Acknowledgments I N THE COURSE of putting this collection together, I incurred much debt with colleagues and friends in and outside the academy. This volume would have been impossible to produce without the support and cooperation of my fellow authors. They responded enthusiastically to a call for papers and followed this up with encouraging words, timely submission of their chapters, and prompt responses to inquiries. The foundational conversations that planted the seed of this book in me began several years ago and with several people. As director of the Tony Elumelu Foundation (TEF), Dr. Wiebe Boer generously invited me to partake, along with other scholars, in a research project designed to map the contemporary African investment and transnational entrepreneurial landscape. This project led to my participation in another important conversation: a scholars’ retreat in Calabar, Nigeria, organized by the foundation’s Africapitalism Institute. The retreat was designed to formulate the outlines of an African business ethic under the rubric of Africapitalism. There, in the company of other scholars, I reflected harder on the nature of entrepreneurship in Africa, its character, history, and peculiarities. Subsequent reflections produced a mental outline for this book. I am grateful to TEF and to Dr. Boer for opening these avenues that enabled me to imagine the contours of this volume. My conversation with Professor Kenneth Amaeshi of the University of Edinburgh Business School, a renowned scholar of African business and entrepreneurial cultures, reaffirmed my epistemological convictions on the topic of this volume. Dr. Lucky Onmonya, the registrar and CEO of Nigeria’s Institute for Development Finance and Project Management, Abuja, is one of Africa’s authoritative voices on matters of entrepreneurial empowerment. Over the years, our conversations on the broad theme of African entrepreneurial potentials have enriched my perspectives and given me new ways of thinking about the subject outside my strict academic and disciplinary training. At different stages of this book project, Scott Jossart helped with a variety of duties ranging from editing, to formatting, to coordination. His input was instrumental in resolving several technical challenges that arose as the volume gradually materialized. I thank the reviewers, who not only thoroughly read the manuscript but also provided us with specific, actionable comments that, as they will see, have helped strengthen several aspects of the book. Finally, I thank my wife, Margaret, and our two daughters, Ene and Agbenu, who persevered and supported me as I labored to get this collection ready for publication. ENTREPRENEURSHIP IN AFRICA Introduction Toward African Entrepreneurship and Business History Moses E. Ochonu A FRICA IS SUFFUSED in entrepreneurship talk. Local and international development and antipoverty programs privilege entrepreneurship and recommend it as a bulwark against economic adversity and as a foundation for economic recovery. The figure of the entrepreneur has emerged as an organizing idiom for articulating the economic hopes and aspirations of various African societies. Globally recognized African entrepreneurs such as Aliko Dangote, Strive Masiyiwa, Patrice Motsepe, and Tony Elumelu are collectively regarded as the vanguard of a new African economic and developmental order that depends on the continuing ingenuity of entrepreneurs. These leading African entrepreneurs may indeed occupy the cutting edge of a new African economic age animated by entrepreneurial energies, but it is important to recognize that Dangote and his cohort stand on the unheralded shoulders of generations of African entrepreneurs, a tapestry of business histories and experiences that go back to precolonial and colonial times. While Forbes-listed African entrepreneurs continue to capture the continent’s imagination, Africa’s rich entrepreneurial tradition calls for reflections on the role of innovation and enterprise in African history, as well as for a recovery of the multiple stories of entrepreneurial endeavor that foreshadowed today’s entrepreneurial practices on the continent. This volume is a modest attempt to begin this task of recovery. Implicit in this effort is a historicization of Africa’s intensifying fetishization of entrepreneurship as a path to individual, group, and societal economic prosperity. The facts of this entrepreneurship history, this volume demonstrates, should temper the entrepreneurial hysteria that has gripped Africa, but they also should foreground and lend credibility to ongoing conversations about the existence and contemporary utility of a distinct African business culture. We live in a neoliberal moment in which entrepreneurship and entrepreneurs are celebrated as economic agents, catalysts for poverty reduction and economic growth. Whether entrepreneurship deserves this outsize reputation in our vast economic ecosystem or is itself a function of fundamental structural economic reconfigurations is an enduring question, one debated but never resolved. What can historical modes of analysis and a backward gaze into the longue durée reveal about what entrepreneurs can and cannot do? How can we engage with this question of entrepreneurial instrumentality from the unique perspective of African history? The latter question is the central focus of this volume. Long monopolized by economics and its allied disciplines, entrepreneurship has morphed into a transdisciplinary subject of inquiry, with several humanistic and social scientific fields scrambling to contribute to our understanding of the role of entrepreneurial innovation and entrepreneurs in economic development. Historians have been slow to bring their methodological and analytical protocols to bear on the subject, and Africanist historians have been slower still to grapple with a subject matter for which Africa has increasingly become a laboratory. This volume corrects this paucity of historical reflections, and specifically Africanist historical reflections, on the subject of entrepreneurship. We do not merely seek to historicize discourses and practices of entrepreneurship in Africa, although the following chapters do so with illuminating rigor. Rather, the volume is conceptualized to expand the field of analysis on entrepreneurship by posing expansive, even elastic, questions and advancing examples rooted in familiar and unfamiliar African historical contexts. These contexts are both spatial and temporal, personal and structural. The question animating this volume is a simple one, but one with many possible iterations: What can the social, economic, and political histories of Africa, as well as African historical encounters, tell us about entrepreneurship as both a generic and a culturally inflected endeavor? The chapters that follow answer this question conceptually and empirically. The question correctly assumes the existence of a dominant theory of entrepreneurship, one that has not reckoned with the peculiar manifestations of entrepreneurial and innovative business endeavors in African history. Much of today’s paradigmatic economic theories have their intellectual origins in Western thought, even if the empirical circumstances that instantiate these theories and the ideational genealogies of their insights are of non-Western origins. This is not a radical statement to posit, given the fact that Western political and economic ascent and domination have helped mainstream, some might say naturalize, the Eurocentric semiotics of supposedly universal economic concepts such as entrepreneurship. Yet neither classical economic theory, an ideological component of Western imperialist expansion in the nineteenth and early twentieth centuries that is posited as the foundation of modern capitalism, nor the prevailing neoliberal consensus uncritically valorizes entrepreneurship as an engine of economic development.1 The Schumpeter Effect It was not until the early twentieth century that entrepreneurship formerly entered the lexicon of Western economic theory. Economist Joseph Alois Schumpeter introduced to the field of economics systematic thinking about the concept of entrepreneurship, coining the term “entrepreneurial spirit” and positing the initial conceptual apparatuses for understanding and debating the role of entrepreneurs in a capitalist economy.2 The historical newness of the concept belies its epistemological and programmatic sway in our
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