At first glance, Sunderland's partnership with Invest in Africa is a noble one. But is all as it seems? Share this
As the Premier League season got underway this past weekend some of you may have noticed for the first time (shame on you) that Sunderland have a new two-year shirt sponsorship deal with Invest in Africa. Founded by schoolteachers hoping to offer a vehicle to improve local lives (as well, I imagine, getting to play a lot of football) Sunderland are a club with a strong history of altruism and community spirit. If you combine that history with the Corporate Social Responsibility aspects of the deal and the increased name recognition that the deal with gain them on an increasingly wealthy and football mad continent, it is a marketing departmentâs wet dream. But as is all too often the case with European misadventures on the continent, all that glitters is not gold. Black gold, in this instance.
Invest in Africaâs founding partner is Tullow Oil, an Irish oil company listed in London with one of the finest oil exploration records in Africa. However, Tullowâs portrayal of themselves as a founding partner of IIA is alleged to have been somewhat wide of the mark. Claims on IIAâs website that there were several founding partners which turned out not to have been the case led to allegations that IIA is nothing more than a PR exercise for Tullow Oil. Perhaps more worryingly, questions have been posed over Tullowâs record in a number of countries in Africa. A report by economic justice campaigners, Platform, alleged that Tullowâs actions in the Congo would have cut oil revenues for the government there by $10m. Fishing communities in Ghana have complained that local business has been affected by exclusion zones around one of Tullowâs major rigs in the region. Also, Tullow has come under fire for failing to be fully transparent about its contracts with African governments. Tullow have countered saying that in some cases they are obliged to keep contracts private. However, campaigners argue that the opaque nature of extractive industry contracts can make it all too easy for corrupt governments to deny their citizens the services they should expect given the vast revenue streams created by such natural resources.
Now, none of this is to say that the idea behind IIA is not a noble one or that Tullow arenât genuine in their hope to bring in more partners looking to invest in Africa. Parts of Africa need aid, of that there can be no doubt, but in order to move beyond aid there is a need for investment (investment that companies like Tullow provide and IIA champion), and Africa is more than ready for it. Africaâs projected GDP by 2020 is $2.6tr, its consumer spending $1.4tr, its working-age population by 2040 will be a staggering 1.1bn. Itâs arguably the best investment opportunity on the planet, but it must be done responsibly.
The Sunderland/IIA deal is a canny one on Sunderlandâs part and as the century progresses Iâm sure we will see more partnerships between top English clubs and African businesses and initiatives (looking at the numbers, theyâd be mad not to). However clubs need to be careful who they get into bed with. The passion for English football in Africa is difficult to put into words and while I can only speak for myself, if my team ended up sponsored by someone whose lack of transparency or collusion with a corrupt autocrat was meaning I couldnât get healthcare (for example) I canât imagine being too eager to get behind the team. In fact Iâd be downright pissed off. If clubs are hoping to tap into Africaâs vast potential itâs important they do their homework first.
http://www.thefootballramble.com/blog/entry/investing-in-africa
Make of this what you will, personally just glad tHe money may keep rolling in big time, long time.
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As the Premier League season got underway this past weekend some of you may have noticed for the first time (shame on you) that Sunderland have a new two-year shirt sponsorship deal with Invest in Africa. Founded by schoolteachers hoping to offer a vehicle to improve local lives (as well, I imagine, getting to play a lot of football) Sunderland are a club with a strong history of altruism and community spirit. If you combine that history with the Corporate Social Responsibility aspects of the deal and the increased name recognition that the deal with gain them on an increasingly wealthy and football mad continent, it is a marketing departmentâs wet dream. But as is all too often the case with European misadventures on the continent, all that glitters is not gold. Black gold, in this instance.
Invest in Africaâs founding partner is Tullow Oil, an Irish oil company listed in London with one of the finest oil exploration records in Africa. However, Tullowâs portrayal of themselves as a founding partner of IIA is alleged to have been somewhat wide of the mark. Claims on IIAâs website that there were several founding partners which turned out not to have been the case led to allegations that IIA is nothing more than a PR exercise for Tullow Oil. Perhaps more worryingly, questions have been posed over Tullowâs record in a number of countries in Africa. A report by economic justice campaigners, Platform, alleged that Tullowâs actions in the Congo would have cut oil revenues for the government there by $10m. Fishing communities in Ghana have complained that local business has been affected by exclusion zones around one of Tullowâs major rigs in the region. Also, Tullow has come under fire for failing to be fully transparent about its contracts with African governments. Tullow have countered saying that in some cases they are obliged to keep contracts private. However, campaigners argue that the opaque nature of extractive industry contracts can make it all too easy for corrupt governments to deny their citizens the services they should expect given the vast revenue streams created by such natural resources.
Now, none of this is to say that the idea behind IIA is not a noble one or that Tullow arenât genuine in their hope to bring in more partners looking to invest in Africa. Parts of Africa need aid, of that there can be no doubt, but in order to move beyond aid there is a need for investment (investment that companies like Tullow provide and IIA champion), and Africa is more than ready for it. Africaâs projected GDP by 2020 is $2.6tr, its consumer spending $1.4tr, its working-age population by 2040 will be a staggering 1.1bn. Itâs arguably the best investment opportunity on the planet, but it must be done responsibly.
The Sunderland/IIA deal is a canny one on Sunderlandâs part and as the century progresses Iâm sure we will see more partnerships between top English clubs and African businesses and initiatives (looking at the numbers, theyâd be mad not to). However clubs need to be careful who they get into bed with. The passion for English football in Africa is difficult to put into words and while I can only speak for myself, if my team ended up sponsored by someone whose lack of transparency or collusion with a corrupt autocrat was meaning I couldnât get healthcare (for example) I canât imagine being too eager to get behind the team. In fact Iâd be downright pissed off. If clubs are hoping to tap into Africaâs vast potential itâs important they do their homework first.
http://www.thefootballramble.com/blog/entry/investing-in-africa
Make of this what you will, personally just glad tHe money may keep rolling in big time, long time.
