Former head of the transport and logistics division in Africa, from 2003 to 2014, of the Bolloré group – since sold to the shipowner MSC -, Dominique Lafont has been traveling the continent for 20 years and knows its subtleties. Today he capitalizes on his experience and his extensive network to advise companies that would like to set up there, or that are seeking to develop there, through his company Lafont Africa Corporation. Vice-president for Africa of Medef International, he notes the decline, in the face of growing competition, of France’s economic influence, but also deplores the decline of his language.
L’Express: What is your view on the recent coups in sub-Saharan Africa?
Dominique Lafont: The weakening of the Sahel countries was predictable since the beginning of the 2010s for all those who knew Africa, due to the spread of terrorist groups claiming to be radical Islamists and the fall of a certain number of strong powers. like Gaddafi’s Libya, Blaise Compaoré’s Burkina Faso and the recent disappearance in Chad of Idriss Déby. They were, in their own way, factors of local geopolitical stabilization. The difficulties in agriculture linked to climate change have further destabilized these countries.
Anti-French sentiment is significant in these movements. Does this affect economic ties between France and Africa?
The governments in place have learned to distinguish political issues from business-related issues. Please note, this disconnection is true for political power, but not for certain segments of public opinion: in Senegal we have seen populations attacking large French brands like Auchan and TotalEnergies. But small and medium-sized companies, which do not have this symbolic status, can continue to carry out their activities. Their main subject is not really the relationship between France and the African country where they operate. For all these companies there is first the question of the security of their operations and their personnel. Today, the danger is greater for companies, but it remains possible to work in these countries. In the event of political unrest, the strategy consists of putting oneself in a position to let the storm pass. You do not close your activities, because it takes years to establish yourself, build a network with local administrations and partners, set up teams, etc. But you suspend investment projects and you try to maintain the system.
French banks have given up and closed their African establishments…
They have never been characterized by great voluntarism in Africa, where they did not have an ambitious and lasting network strategy beyond their historical establishments. They also faced competition from Moroccan banks, with strong strategies, vectors of influence of a state strategy. Not to mention the rise of prudential rules: the cost has become too heavy to bear.
Is this absence of French financial players not a handicap for French companies operating in these countries?
Businesses first need a partner offering good quality service. Moroccan and even African banks offer services to SMEs that are at least as good. These need the support of an efficient banking group, not necessarily French.
What about corruption, which has pushed many Western companies to throw in the towel?
Administrations tend to become stronger, thanks to a generation of civil servants who are more connected to the rest of the world, with more tools at their disposal. If I refer to my personal experience, the administration is better equipped, more informed, more structured. Digitalization is a brake on corruption. I am talking here about everyday economic life, not big contracts, for which I will be more cautious in my judgment. In this area, Western groups must face competition from groups from emerging countries which are not restricted by their national legislation, with a real crowding-out effect.
Should we fear China’s growing influence?
China arrived with great promises. But 10 to 15 years later, Africans were able to measure the gap between the promised prospects and reality: the debt must be repaid, with high rates, the quality of work is not always there… Towards 2008-2010, Chinese attractiveness was massive. Today, I won’t say that there is disillusionment, but a maturing of relationships. Disappointed people are not going to be fooled by other speeches.
Do you see France’s loss of economic influence?
At the end of the 1990s, France had a preeminent place in Africa, particularly in West Africa. Today, the subject for a French company consists of facing much stronger competition than 20 years ago. French investments in relative value have fallen significantly compared to the early 2000s, which was inevitable, while investments from emerging countries have increased, coming from the Arabian peninsula, Asia, the Indian subcontinent, Latin America… and Africa. The continent has entered globalization. Foreign investments are pouring in from everywhere and intra-African flows are increasing. Morocco, for example, is investing in West Africa. Some African companies are developing and investing in other countries, like the Senegalese CSTT-AO, which operates in South Africa and is in the process of establishing itself in the United States and Australia. It is a long and continuous movement, pushed by African businessmen who understood that growth required regionalization. On the other hand, certain States will experience very worrying declines. African countries will have to become more involved themselves in stabilizing their neighbors.
So the African continent remains attractive?
Yes, even if the growth prospects are very heterogeneous from one country to another. The question of security is becoming more and more acute. Growing African countries will have to worry about their regional environment. Morocco, for example, needs Mauritania and Senegal to be stable. Which means that interregional cooperation must be strengthened.
We should also point out that port, urban and road infrastructures have not developed at the rate of trade. All capitals of coastal countries are reaching crippling levels of congestion, especially when it comes to road traffic. In addition, the cost of living and land are high and salaries are increasing, so that the gap between local salaries and average global standards is narrowing. In short, the conditions for the development of foreign companies in Africa have become more complicated over the past 20 years and Africa is less of an El Dorado. But there are other positive factors that are gaining strength, notably those linked to a more educated workforce. Today, it is easier to find African senior executives and leaders. And the prospects for long-term growth remain unmatched.
With what profile?
The new generation of leaders is made up of young executives who have had access to international training, are uninhibited and speak English. I participate, for example, in the Public policy center, a think tank Moroccan with international influence, very open, where exchanges take place in English. Unfortunately, the defense of the French language seems to be a secondary subject for our country. However, if it were to be confirmed that French is losing influence in Africa, it would be a bad blow for France’s soft power. Today, to take the example of Morocco, Moroccans have the desire to develop their relations with the rest of the world, in particular the Saudi, Brazilian, Mexican, English-speaking circles… This is done against French influence , which is doomed, inexorably, to be reduced. Morocco is no longer the younger brother of France.