Day 5: National Microfinance Bank

Monday 3/17/08

After we left Mengi's IPP headquarters we headed to the National Microfinance Bank (NMB) for a meeting with its CEO Ben Christiaanse. NMB was privatized in 2005 and is now owned by Tanzanian government (51%) and by the Dutch bank (49%). They serve about 40,000 customers and have an extensive network. They have many project such as NMB Junior Account, NMB Bonus Account and NMB Personal Account. Christiaanse has been in Dar for a short time but seems to progress fast. In 6 months NMB created 400 jobs, introduced new programs and sponsor youth events (soccer team). They are improving their banking business through developing an IT system and training programs. They are connecting worlds of developed and developing countries by sending employees to Holland. These people experience western work environment, culture, level of customer service and return to Tanzania to share it with their colleagues.

In Tanzania if you want to do business you need to go into the agricultural market. NMB was successful in micro-financing program helping 100,000 farmers to increase their selling power.

Some challenges NMB faces: shortage of qualified employees, repayment rate and customer service. Customer service in particular is non-existent in Tanzania because of the socialism of the previous regime. It's not in people's minds to think that "the customer is always right."

Image: Ben Christiaanse and Bruce Bachenheimer

Day 5: I can, I must, I will!

Monday 3/17/08

This afternoon we were fortunate to meet Reginald Mengi. His speech was very inspirational for everyone and I must say it was a highlight of this trip. Mengi is a person of both worlds in Africa - poverty as well as success and wealth.

R. Mengi is Rupert Murdock of Tanzania. He is a Chairman of IPP Group who started his business with ballpoint pen assembly. Mengi had a difficult childhood, living in a mud hut with his family that also accommodated a cow, goats and even rats. A meal a day didn't come up easily, a pair of shoes was unheard off. He describes the time walking barefoot long distances to go to school, owning only one uniform that you wear during the day and wash and press at night, so you look clean next day. He himself says he comes from “the poor of the poor”. However, he emphasizes the difference between poverty of the country vs. poverty of people. He rephrases: “I was born in a very rich country. But people of Tanzania are poor.” For Mengi poverty was not a problem, it was a challenge. He says how important it is to be able to see it and convert problems to challenges. “When you see it as a problem it sits on your shoulders and pulls you down. But a challenge will stand in front of you and you'll try to overcome it.”

Mengi touched on many topics - poverty, religion, entrepreneurship, environment, happiness... He spoke with so much passion, energy and charisma and I must say he is very theatrical. I truly enjoyed his discussion and hope you'll get inspired as well. Enjoy the video!



Here are some of Mengi’s thoughts that I keep in mind:

To be a good entrepreneur:
- Hard work
- Start small think big
- Know your destination
- Make a plan of your destination

You must see yourself as a winner #1. You must believe in yourself. I can I must I will!!!

You must delegate with a full heart and trust. Have confidence in people you delegate. Important things to see in people and in this order are: commitment and competence.

Build people as a part of your business. Otherwise they won’t feel like part of the asset.

Find the way to thank people and God.

Contribution to the environment is not to pollute. Support the programs that improve environment.

Happiness is collective not individual.

When you go you take nothing with you. You’ll be remembered by what you did with your money not by amount of money.

There are 2 types of people: 1) Those that die and are gone 2) Those that live in your heart.

Fear is an enemy of entrepreneurship!

There are no different jobs for educated and not educated. Difference lies in ways you do it. With education you do it more efficiently.

Day 5: Brainstorming

Monday 3/17/08

Before the day took off we had a 2-hour brief on updates of daily activities and brainstormed on entrepreneurship ideas. Discussions included improving customer service in hotel industry, carved furniture exports or training programs for various businesses that we saw so far.

We then headed for lunch at Holiday Inn and a meeting with R. Mengi.

Day 5: Fish Market

Monday 3/17/08



This morning some of us decided to explore the local fish market. The place was very busy, some people auctioning all types of fish and unusually colored crabs, others cleaning the fresh catch. We talked to a vendor about his business - he buys the fish from the fishermen and then actions it here. Like any other market you can find lots of food here, where locals go for breakfast/lunch (see image). There is an outdoor restaurant and I bought a fried rice dough (pamamantiria). It was delicious! Across from the fish market is another market where we found shells, more food vendors as well as charcoal and wood for burning. It was very hot and steamy.

Images: Charcoal and wood stand; Restaurant at the fish market.

Day 4: Zanzibar

Sunday 3/16/08

This morning (7am) we caught a 2-hour ferry to Zanzibar. Although Zanzibar belongs to Tanzania you still need a passport (unless you speak fluent Swahili). We had a great time on a boat – conversing, taking pictures and making various plans for the island.


Images: Palace Museum - wooden staircase, building and a furniture room.

We took a tour of the Palace Museum, once a residence of the Sultan of Zanzibar. The palace is located in the historic Stone Town, a UNESCO’s World Heritage site. Despite the rich history the building and the nearby cemetery are neglected and in poor conditions mostly due to the lack of sufficient funding (a destiny of many other beautiful buildings on the island). The inside décor features carved furniture, crystal chandeliers and portraits of Sultan and his family. To my surprise they also displayed portraits of Sissi and Franz Joseph (the Austrian Empress and Emperor).

There is a book - Memoirs of an Arabian Princess from Zanzibar - an autobiography by a true Zanzibari princess Sayyida. I just ordered it.

We passed by the House of Wonders, where supposedly people were sacrificed and buried in the tall pillars; and continued walking further into the Stone Town. It’s full of shops, restaurants and pubs (one praising Zanzibar’s native Freddie Mercury which is ironic considering the 25-year punishment for being gay.) Not sure if it was the hot weather or street vendors attacking us to buy the local spices and arts or the views of the turquoise waters but we all wanted to go to the beach.

Image: House of Wonders; Zanzibar's local food market.

Before leaving for Dar, A'Lynne, Rob and I went to the local food market for spices (I got some cardamon and vanilla coffee, and also colored red curry powder) and some gift shopping. I couldn't resist some of the local fabrics.

Day 3: Meeting David Robinson and Daudi Mwakawago

Saturday 3/15/08

This afternoon, we met David Robinson and Ambassador Daudi Mwakawago. It was very informative and enjoyable (despite the broken a/c.)

David Robinson
David Robinson is a very handsome and a very tall man. (Genes of Jackie Robinson perhaps?) I’ve been looking forward to meeting him and did some prior research on his career as a coffee farmer. (See Vanity Fair article) I even purchased coffee from his company based in New York - Sweet Unity Farms Coffee (a bit of a delay in distribution and I only received it after my return from Africa.)

David came with some of his children (some under 5 years old), gave them notebooks and pencils and begun his talk. He talked about Mshikamano Farmers Group of 400 small coffee farmers based in south of Tanzania. The country’s GDP is 70% agriculture and cooperatives are quite common. David, knowing the culture and markets of both countries wants to export Tanzanian coffee to the US market. His 3 main challenges – 1) capital, 2) expertise and 3) organizational structure. He seems to have control over the supply of the value chain but is faced with challenges in differentiating himself in a competitive US market, the distribution channels and marketing. His agenda is to present the coffee under the private label - Sweet Unity Farms Coffee. His competitors? – Starbucks, and even bigger fish like P&G or Altria.

We discussed various topics - the local market demand (seems only 10% of Tanzanians drink coffee), designing attractive packaging, exporting possibilities to Ukraine, toll-roasting and E-commerce. David is looking for roasting companies (minimum 540lb) in the US that would also arrange packaging. He has quite a challenge!

Daudi Mwakawago
Our next speaker was Daudi Mwakawago, a former UN Ambassador and by the end of the trip we became very friendly. He was with us most of the time, visiting Reginaldi Mengi, Universtiy of Dar and other amazing places. He largely contributed to the success of this trip and I’m very thankful we got to know him.

Ambassador briefed us about his career at the office, Ministry of Industry and Trade, his time in Rome and the US as an ambassador and peace negotiations in Sierra Leone.

He emphasized 4 key strengths that differentiate Tanzania from other African countries:
1. Indigenous language –Swahili
2. No tribes wars
3. No Discrimination (chieftainships was abolished)
4. Leadership

Despite the fact that he is retired he remains very active. His favorite line: "I’m retired but not tired."

Later in the evening Ambassador joined us for dinner; amazing Indian food – naan bread, delicious shrimp pakoras and Kilimanjaro beer (although quite light to Slovak standards).

Images: D. Robinson and I; Bruce, Amb. Mwakawago & D. Robinson; Sweet Unity Farms postcard; Marina and Amb. Mwakawago

Day 3: City tour & Markets

Saturday 3/15/08

City Tour
After breakfast which shockingly also served a few south Indian dishes (Idlies, coconut chutney and Sambhar) we went for a bus tour, passing by the port, the City Hall, famous Askari (soldier) Monument from WWI - a key meeting point for many locals. We then headed north along the Indian Ocean to Msasani Peninsula. This area is filled with wealthy, spacious houses with swimming pools and gardens, and also a home to many embassies. We made a quick stop at a cliff overlooking the ocean, everyone running to take photos at the backdrop of turquoise waters and distant fishermen boats. The weather was gorgeous!


Image: At the Sea Cliff, A house (maybe an embassy) in Msasani Peninsula.

Tingatinga Arts
Next, we headed to the local art markets. The first place – Tingatinga Arts - consisted of shops some with an art school, where mostly male artists painted pieces from metal animals to African themed paintings and carvings. It had a feeling of a hand made mass production where artists were creating the same products over and over. I fell in love with a painting of a Maasai woman (see photo) but the artist didn’t like my price. (He wanted $300.) 50-75% cut is fairly normal and one can get a 28x38 inch painting for about 25,000 shillings (or $25).

Image: A painting of a Maasai Woman, An artist at Tingatinga Arts

Makonde Craft Village
Our second stop was at the Mwenge market - the center for the Makonde wooden works where most tourists come to buy wooden carved sculptures made of mpingo (darkwood). They also have small furniture e.g. trunks, chairs even chessboard tables. Makonde people are known to be the finest traditional sculptures in east Africa. The village was full of shops with male carvers (no females in this industry) working at the back. Vendors inviting us with a smile and shouting “Karibu” were competing with other sellers for our attention. “Please come in. No charge for looking.” More carvers were settled in the center of the village under an open tent and I was able to get a few shots without them noticing. (They don’t let you take pictures and ask you to pay). The conditions were poor - dusty, very hot and dirty - but I also noticed a carver using a cell phone.

Towards the end my negotiating skills were coming back and I managed to buy couple of paintings and sculptures. They are stunning!

A good advice from our local driver Steve: “Stick with the 10.”


Images: Professor in action, Carver working at the Mwenge Market, Carver with a cellphone.

We also stopped at a shopping mall that was quite modern with a supermarket, boutiques, banks and ATMs (long lines because people just got paid and there were only 1 or 2 ATMs). Anna and I went to the bank to exchange money and were shocked when a teller refused to give Anna the exact amount. Reason? No coins in her registry.

I saw a jewelry shop that carried Tanzanite stones, but there was no time. However, the search for a blue Tanzanite will continue.