From "Donor Mentality" to "Owner Mentality"

Perhaps more so than any other part of Africa, there is a popular notion in Rwanda that we must depart from a “donor mentality”. This new mandate has been poignantly communicated in books such as “Dead Aid”, a book which President Kagame handed out to every member of his administration. The thought that local problems can, or should, be solved by benevolent outsiders is perhaps one of the most crippling legacies of Africa’s colonial past. Government, NGO and philanthropic aid continues to pervade countries like Rwanda, and while these people and institutions often have truly noble intentions, Kagame and others are fearful they may stunt the Rwandan mindset required for truly sustainable development. Karisimbi Partners is committed to the market-based sustainability of its client companies, and we feel we can do this best by being profitable and sustainable ourselves. This approach makes us somewhat odd among the many Westerners here representing religious, political or non-profit organizations, but it has also made us popular among the local public and private sector leaders seeking an alternative to traditional aid. I have been struck this week by some of the interactions we have witnessed from this vantage point…

Exhibit A. Too often, Rwandans will wait for aid to come to the rescue rather than working to rescue themselves. For instance, we know of a village that refused to build proper latrines because the village next door had them donated and they thought it would be easier to wait until they received similar help. One of our client companies has recently received a significant investment from a European businessman. As Karisimbi Partners has been asked to evaluate the caliber of the existing management team and supplement where necessary, I have had the opportunity to interview 16 of the top employees in this agricultural processing company. I have asked each, “What changes would you make if you were the owner of the company?”. Almost without fail, the initial response has been a laugh or smile and a comment which indicates they had a) never considered the possibility of their being an ‘owner’, and b) have little reason to think such could be any more than a hypothetical exercise.

Exhibit B. I met with a leading Private Sector Development manager working for a European embassy this week. He has lived here for four years and personally overseen millions of Euros in aid via more than 13 initiatives led from his office. When I told him what Karisimbi Partners was doing, he thought it a refreshing new approach. When I told him mid-sized companies here are paying us such that we are getting closer to profitability every month, he almost fell out of his chair. Like the recipients of donations, those giving donations may also suffer from this mentality. It becomes difficult to believe it could be done differently when you become an expert at giving money to those who are incented to solicit it from you. The donor mentality can be debilitating on both sides of the transaction and fail to recognize the full dignity and equality deserved by each party.

Such experiences reinforce our belief: an “owner mentality” is the best antidote for those suffering from “donor mentality”.

Onward and upward,

-Carter