An interview with the CEO of CCC, published in 2012 in the Rising Africa magazine
The President and CEO of the Canadian Commercial Corporation (CCC), Mr. Marc Whittingham shared his views on African development with “The Rising Africa”. Was there a lost decade in Canada-Africa relationship? Our editor Marje Aksli asked the questions.
The mandate of CCC is “to assist in the development of trade between Canada and other nations.” How big share of your clients are currently from Africa nations?
Right now, African clients make up a relatively small share of our total business, but that small share is actually quite significant when we look at the types of projects that we are working on in Africa with Canadian companies – these are complex infrastructure projects. We are seeing a lot of potential in Africa; rapid urbanization in many countries on the continent is putting tremendous pressure on infrastructure. We are taking a very active role in engaging with clients from Africa to show them the solutions that Canadian companies can offer for their water, transportation and energy infrastructure investments.
Do you work with companies directly, or through their country governments only?
CCC has the authority to sign international contracts on behalf of the Crown for purchases destined for a foreign government. This provides foreign government buyers with the option of a government-to-government arrangement that can reduce the time, cost and risk of international tendering. It also offers a very practical mechanism for bilateral cooperation in key areas such as defence and infrastructure development.
How do you choose the countries CCC works in?
First of all, we never treat Africa as one entity; we look at each country individually. I was fascinated by the address by the dean of African diplomatic corps in Ottawa, Mrs. Chideya at the Canada-Africa Symposium when she said: “We are many different countries. Africa is not a monolithic continent.” And this is what companies in Canada need to understand, as well. The countries in Africa have individual resources, individual rules of law and individual talents and human capital.
What recommendations do you have for Canadian companies doing business in Africa?
Certainly there needs to be an increased awareness that there are opportunities, as the reality of Africa starts to be discussed in the media, and Canadian Council on Africa is doing an excellent job in that regards. The other thing to mention is that Canadian businesses look for opportunities where they believe there is a stable rule of law. I think you see this recognition in Africa that democracy and rule of law leads to economic development, which leads to social development. Almost in that order. I would advise the companies to know the country they are working in; to talk to Export Development Canada (EDC) about financing; to talk to Canadian trade commissioners, and to look at CCC if there is a possibility of government-to-government transaction. And certainly I would recommend that every company looking to work in Africa join CCAfrica. There are lots of opportunities in different countries of Africa to bring Canadian expertise to different areas.
Was there a lost decade in Canada-Africa relations?
Historically, Canada was doing more in developmental assistance programs and a lot of social development programs. I don’t think we had a lost decade from the business perspective, I think we were never really there from a business perspective. And maybe Africa was not ready for us and maybe we were not ready for Africa. Another reality in Canada is that for many years, Canada’s business was done with Canadians and with Americans. It’s a big market there. Today, our trade is shifting from almost all trade going to the U.S. two decades ago to include other markets: Latin-America, definitely Asia, and now increasingly Africa. I think it is wonderful that Canadian International Trade Minister Fast is leading trade missions to some African countries.
CCC currently has an active project in Ghana in the energy field. Why and how was this project selected?
First of all, Ghana is a country where democracy has prevailed, and the rule of law is prevailing. As the late President Mills mentioned many times the rule of law is necessary as it attracts the investment. In terms of our project there, the Ministry of Energy needed to increase the energy capacity of the country significantly as a part of a long-term strategy to support the power demands of the growing middle class in Ghana. This meant more power plants throughout the country in a relatively short period of time. CCC first got involved in the Ghana power project when we were contacted by our trade partners at the High Commission of Canada in Ghana to assist a Canadian company, Orenda Aerospace Corporation, and its partners in negotiations with the Government of Ghana. Both parties recognized a key facilitation role that CCC could play in the transaction for a 132-Megawatt power generation plant.
Do you see room or availability in your capacity for other companies to follow a similar route?
The opportunities for companies to follow a similar route are countless. African leaders have told me that compared to companies from other countries the Canadian businesses have the advantage of coming with quality products, with a long term perspective and high degree of Corporate Social Responsibility (CSR). Obviously, environmental concerns are paramount in anything we do, but also community engagement, local employment, knowledge and technology transfer to locals. I spoke earlier about rapid urbanization in many African countries and increased demands on infrastructure, we see that most of these demands are for reliable energy and adequate housing. Our goal is to come up with the best-possible Canadian solution to meet countries’ needs.
How do you do that?
The model we put forward is attractive to governments as it presents the Government of Canada as a partner in the country for what can be a very complex process. It is a collaborative approach that includes CCC, Canadian companies, and often the Trade Commissioner Service and Export Development Canada, working with governments to assure them of a credible and ethical process. We started doing public-private partnerships (PPP) in the late 80’s. During the long learning process we realised that the key to a PPP is to make sure that the risk is shared in a right way: public sector should not take private sector’s risks and vice versa. It means that both should take the risk where they are able to manage it properly. Once you do that then you are able to establish a good project that will be efficient for the communities. You need a very strong public sector that is able to negotiate a good risk sharing model with the private sector.
How strong is the public sector in African countries?
Do you work with companies directly, or through their country governments only?
CCC has the authority to sign international contracts on behalf of the Crown for purchases destined for a foreign government. This provides foreign government buyers with the option of a government-to-government arrangement that can reduce the time, cost and risk of international tendering. It also offers a very practical mechanism for bilateral cooperation in key areas such as defence and infrastructure development.
How do you choose the countries CCC works in?
First of all, we never treat Africa as one entity; we look at each country individually. I was fascinated by the address by the dean of African diplomatic corps in Ottawa, Mrs. Chideya at the Canada-Africa Symposium when she said: “We are many different countries. Africa is not a monolithic continent.” And this is what companies in Canada need to understand, as well. The countries in Africa have individual resources, individual rules of law and individual talents and human capital.
What recommendations do you have for Canadian companies doing business in Africa?
Certainly there needs to be an increased awareness that there are opportunities, as the reality of Africa starts to be discussed in the media, and Canadian Council on Africa is doing an excellent job in that regards. The other thing to mention is that Canadian businesses look for opportunities where they believe there is a stable rule of law. I think you see this recognition in Africa that democracy and rule of law leads to economic development, which leads to social development. Almost in that order. I would advise the companies to know the country they are working in; to talk to Export Development Canada (EDC) about financing; to talk to Canadian trade commissioners, and to look at CCC if there is a possibility of government-to-government transaction. And certainly I would recommend that every company looking to work in Africa join CCAfrica. There are lots of opportunities in different countries of Africa to bring Canadian expertise to different areas.
Was there a lost decade in Canada-Africa relations?
Historically, Canada was doing more in developmental assistance programs and a lot of social development programs. I don’t think we had a lost decade from the business perspective, I think we were never really there from a business perspective. And maybe Africa was not ready for us and maybe we were not ready for Africa. Another reality in Canada is that for many years, Canada’s business was done with Canadians and with Americans. It’s a big market there. Today, our trade is shifting from almost all trade going to the U.S. two decades ago to include other markets: Latin-America, definitely Asia, and now increasingly Africa. I think it is wonderful that Canadian International Trade Minister Fast is leading trade missions to some African countries.
CCC currently has an active project in Ghana in the energy field. Why and how was this project selected?
First of all, Ghana is a country where democracy has prevailed, and the rule of law is prevailing. As the late President Mills mentioned many times the rule of law is necessary as it attracts the investment. In terms of our project there, the Ministry of Energy needed to increase the energy capacity of the country significantly as a part of a long-term strategy to support the power demands of the growing middle class in Ghana. This meant more power plants throughout the country in a relatively short period of time. CCC first got involved in the Ghana power project when we were contacted by our trade partners at the High Commission of Canada in Ghana to assist a Canadian company, Orenda Aerospace Corporation, and its partners in negotiations with the Government of Ghana. Both parties recognized a key facilitation role that CCC could play in the transaction for a 132-Megawatt power generation plant.
Do you see room or availability in your capacity for other companies to follow a similar route?
The opportunities for companies to follow a similar route are countless. African leaders have told me that compared to companies from other countries the Canadian businesses have the advantage of coming with quality products, with a long term perspective and high degree of Corporate Social Responsibility (CSR). Obviously, environmental concerns are paramount in anything we do, but also community engagement, local employment, knowledge and technology transfer to locals. I spoke earlier about rapid urbanization in many African countries and increased demands on infrastructure, we see that most of these demands are for reliable energy and adequate housing. Our goal is to come up with the best-possible Canadian solution to meet countries’ needs.
How do you do that?
The model we put forward is attractive to governments as it presents the Government of Canada as a partner in the country for what can be a very complex process. It is a collaborative approach that includes CCC, Canadian companies, and often the Trade Commissioner Service and Export Development Canada, working with governments to assure them of a credible and ethical process. We started doing public-private partnerships (PPP) in the late 80’s. During the long learning process we realised that the key to a PPP is to make sure that the risk is shared in a right way: public sector should not take private sector’s risks and vice versa. It means that both should take the risk where they are able to manage it properly. Once you do that then you are able to establish a good project that will be efficient for the communities. You need a very strong public sector that is able to negotiate a good risk sharing model with the private sector.
How strong is the public sector in African countries?
African public sectors are of varying strengths. If they do not have enough capacity, you need to back them up. This is where government-to-government contracting can be of help. As a Canadian government entity in contracting, we can provide the capacity and will make sure that the risks are shared in a way that makes sense for everyone. CCC guarantees for both parties that there will be full transparency and it will be in accordance with our Code of Business Ethics. All our employees sign it every year, and the Canadian companies we work with have to comply with it as well.
What could be the positive lessons learned that other companies / governments can benefit from?
Foreign governments have now seen the value that CCC adds by filling the needs of governments to establish robust procurement practices, including due diligence practices to ensure fair, reasonable and ethical contracts in meeting the development needs of the countries. Canadian companies have experienced enhanced access to opportunities by having the power of the Government of Canada at their side in business transactions.
Much has been talked about the CSR and the lack of internationally agreed standards on what should CSR universally hold. What can you say about the CSR projects in the two sites in Africa, in Kenya and Ghana, in terms of their respect for local communities and civil society, environment, economy and governance?
CCC represents both the Government of Canada and Canadian companies in our transactions and CSR and good corporate citizenship are at the forefront of every decision that is made to enter into a contract. This means that we carefully consider all the implications of our business activities not only at home but also abroad. In keeping with the Government of Canada’s stance to encourage and expect all Canadian companies to meet high standards of CSR, we have developed our own guiding CSR principles outlined in our Code of Conduct, and the Code of Business Ethics, which I mentioned already. One element of CSR that we are committed to is the capacity building in the host country, which means that with our projects such as that in Ghana, much of the workforce is actually hired locally, leading to knowledge transfer to the local workforce. In Ghana, we had 94% local employment on the project, meaning that the jobs and skills are kept in country.
How active is the African diplomatic corps in taking advantage of your opportunities?
One of the many advantages of being headquartered in Ottawa is that we have access to the foreign diplomatic missions in Canada. One of the Corporation’s main strategies is to engage with the heads of missions from abroad to not only introduce CCC and our services, but to really educate officials with the government-to-government approach to business and the real benefits that Canada brings to projects, especially to complex infrastructure projects.
Do you think CCC will have a role in the increased trade between Africa and Canada as envisioned by the Minister Fast (his announcement on Oct 16) and the planned CSR hub in Western Africa?
Absolutely. I think CCC will continue to play a very unique role in the increased trade between Canada and countries in Africa. As Minister Fast noted at the Canada-Africa Symposium, Africa is one of the fastest-growing economic regions in the world, which not only means many new opportunities, but also increased competition from around the world. I think CCC, with the Government of Canada and Canadian companies, will be able to contribute greatly to the CSR initiatives that are taking place in Africa, and I believe that supporting ethical business practices is one of the cornerstones of a Canadian approach to trade.
-xxx-
What could be the positive lessons learned that other companies / governments can benefit from?
Foreign governments have now seen the value that CCC adds by filling the needs of governments to establish robust procurement practices, including due diligence practices to ensure fair, reasonable and ethical contracts in meeting the development needs of the countries. Canadian companies have experienced enhanced access to opportunities by having the power of the Government of Canada at their side in business transactions.
Much has been talked about the CSR and the lack of internationally agreed standards on what should CSR universally hold. What can you say about the CSR projects in the two sites in Africa, in Kenya and Ghana, in terms of their respect for local communities and civil society, environment, economy and governance?
CCC represents both the Government of Canada and Canadian companies in our transactions and CSR and good corporate citizenship are at the forefront of every decision that is made to enter into a contract. This means that we carefully consider all the implications of our business activities not only at home but also abroad. In keeping with the Government of Canada’s stance to encourage and expect all Canadian companies to meet high standards of CSR, we have developed our own guiding CSR principles outlined in our Code of Conduct, and the Code of Business Ethics, which I mentioned already. One element of CSR that we are committed to is the capacity building in the host country, which means that with our projects such as that in Ghana, much of the workforce is actually hired locally, leading to knowledge transfer to the local workforce. In Ghana, we had 94% local employment on the project, meaning that the jobs and skills are kept in country.
How active is the African diplomatic corps in taking advantage of your opportunities?
One of the many advantages of being headquartered in Ottawa is that we have access to the foreign diplomatic missions in Canada. One of the Corporation’s main strategies is to engage with the heads of missions from abroad to not only introduce CCC and our services, but to really educate officials with the government-to-government approach to business and the real benefits that Canada brings to projects, especially to complex infrastructure projects.
Do you think CCC will have a role in the increased trade between Africa and Canada as envisioned by the Minister Fast (his announcement on Oct 16) and the planned CSR hub in Western Africa?
Absolutely. I think CCC will continue to play a very unique role in the increased trade between Canada and countries in Africa. As Minister Fast noted at the Canada-Africa Symposium, Africa is one of the fastest-growing economic regions in the world, which not only means many new opportunities, but also increased competition from around the world. I think CCC, with the Government of Canada and Canadian companies, will be able to contribute greatly to the CSR initiatives that are taking place in Africa, and I believe that supporting ethical business practices is one of the cornerstones of a Canadian approach to trade.
-xxx-
