Africans in the diaspora have made and continue to make a remarkable impact on the continent.
With an estimated 200 million people of African descent living outside Africa according to the World Economic Forum—over 1.5 million of them in the UK— the connection to their roots remains strong despite living thousands of kilometers away from the continent.
From sending remittances to investing in their home countries and contributing to the overall development of the continent, the African diaspora plays a very important role in the continent’s prosperity.
According to the United Nations, remittances to Africa have doubled in the last decade, surpassing $100 billion in 2022—exceeding both Official Development Assistance (ODA) and Foreign Direct Investment (FDI)!
Recently, CNN‘s Eleni Giokos spoke with ETK managing director Bolaji Sofoluwe and other diaspora business leaders on how they’re maintaining strong ties to Africa while contributing to its growth.
Watch Bolaji’s interview starting at 15:35 minutes here: https://bit.ly/3Mxwi2X
Economic diversification, regional integration, export value chain consolidation, export infrastructure development, and export financing were among the key discussion points at the recently concluded 2024 Zenith Bank Plc International Trade Seminar.
The event, which was the 9th edition of the seminar was held at the iconic Civic Centre, Victoria Island, Lagos, Nigeria, on Wednesday, September 4, 2024, under the theme “Nigerian Non-Oil Export Industry: Awakening the Giant.” It brought together stakeholders and experts from the Nigerian export sector to explore strategies for boosting the country’s non-oil export market.
During the panel session, Nigerian Non-Oil Export Industry: Awakening the Giant, ETK’s Managing Director, Bolaji Sofoluwe, along with other esteemed panelists including Dr. Williams Kanya, Hon. Otunba Tola Faseru, Dr. Obiora Madu, Mr. Adeniran Ige, FCA and Mevis Aiyeju, provided valuable insights on how to develop and expand the country’s non-oil sector to unlock its full export potential.
From the welcome address delivered by GMD/CEO of Zenith Bank PLC, Dame Dr Adaora Umeoji OON, to goodwill messages from Lagos State’s Honourable Commissioner for Commerce, Cooperatives, Trade & Investment, Mrs. Folashade Ambrose-Medebem, keynote speeches from Secretary of the AfCFTA, Mr. Olusegun Awolowo, and MD of NEXIM Bank, Alhaji Abba Bello, the seminar witnessed unified calls for more focused efforts on adding value to Nigeria’s non-oil export products, transforming them from raw materials into semi-finished and finished goods to unlock greater economic benefits for the country.
Key takeaways from the event included:
📌 The urgent need for comprehensive port reforms to ease congestion and reduce export costs.
📌Sector consolidation and improvement of export and logistics infrastructure to enhance #market access.
📌Greater regional integration through #AfCFTA initiatives to boost the quality and competitiveness of Nigeria’s non-oil exports.
📌Increased export financing to elevate the value of non-oil products and improve the business environment for manufacturers.
📌Addressing insecurity to attract #investment into the Nigerian export sector.
📌Developing and enhancing the service sector to stimulate #growth and drive service exports.
📌Establishing a unified customs union across the continent to lower shipping costs within African and international markets.
As an African-focused market entry and trade expansion consultancy, this seminar aligns with our mission to facilitate #trade and #business opportunities across the continent.
A big thank you to Zenith Bank Plc for consistently championing Nigeria’s non-oil export sector and identifying emerging opportunities to drive growth in this important sector.
On July 25–26, 2024, ETK took part in the Africa Social Impact Summit 2024 (ASIS 3.0).
The two-day summit held under the theme “Reimagining Progress: A New Blueprint for Sustainable Growth in Africa.” was a resounding success!
From networking opportunities with businesses to learn about their social impact projects on the continent to helping SMEs and businesses understand how ETK can support their business goals and their social impact initiatives in Africa, we had a fantastic time at the summit.
Co-convened by the Sterling One Foundation and United Nations Nigeria, the summit featured enlightening and thought-provoking discussions, evidence-based insights, and action plans for the achievement of the Sustainable Development Goals, SDGs in Africa.
For two days, the summit brought together over 2000 forward-thinking and socially conscious professionals from the private and public sectors, civil society organisations, and development communities across Africa with the mission of inspiring investors to support existing African solutions addressing critical issues such as climate change, the circular economy, education, health, WASH, renewable energy, and agriculture on the continent.
From the opening remarks, insightful debate, panel sessions, and roundtable discussions at the event, the event was focused on strategies to increase investment and funding for impactful projects that foster sustainable economic growth and development in Africa. ETK Group specialises in providing SMEs across Africa with access to markets and business opportunities, as well as a range of tailored services to impact investors in Africa, enabling them to achieve their goals. This summit was fully aligned with our goals of supporting investment and sustainable development in Africa.
If you’re a business or social impact investor and want to know more about how ETK can support your business sustainability goals in Africa, please do reach out!
On July 24, 2024, ETK Group and Alitheia Capital co-sponsored an investor’s roundtable with the Lagos State Government under the theme “Opportunities Made in Lagos,” in partnership with Sterling One Foundation and the Lagos State Ministry of Commerce, Cooperatives, Trade, and Investment.
The event, which was a pre-summit panel for the Africa Social Impact 3.0 Summit 2024 held in Lagos on July 25–26, provided an opportunity for potential investors and donors to connect with key decision-makers in the state and for the state government to present its ambitious investment focus and key areas of opportunity to potential investors.
At ETK Group, we do not just believe in Africa’s development potential; we are helping shape the narratives of investment and development on the continent by connecting investors and businesses with investment opportunities in the African market.
Lagos State is projecting a positive economic outlook for the state, driven by the leadership of his Excellency, the executive governor of Lagos State, Babjide Sanwo Olu, the expanding population, and the ongoing sustainable infrastructure development in the state. We are happy to be part of this.
In the last couple of years, Lagos’s economy has shown remarkable resilience, welcoming new investment policies to guarantee returns to investors.
As a leading investment destination in Africa and the 7th largest economy on the continent, Lagos has been proactive in implementing business-friendly policies, including a constant review of the state’s Ease of Doing Business policies to reduce the challenges associated with new business registration, obtaining permits, and helping to eliminate bureaucratic bottlenecks.
We are delighted to announce that ETK Group has been shortlisted for the 2024 Allica Bank Great British Entrepreneur Awards – Global Entrepreneur of the Year category for the East of England region! https://bit.ly/3VX48UQ
Each year, the awards receive thousands of applications, demonstrating the competitive nature and high standard of the competition. This year’s shortlist showcases businesses with a combined turnover of £2.9 billion and approximately 20,000 employees, highlighting the significant roles of these businesses in driving economic growth across the UK.
This award is a testament to the hard work of the ETK team and our commitment to the growth of the UK’s economy and businesses. We’re excited about what the future holds for our mission to support UK businesses in expanding into other markets.
ETK Group Managing Director Bolaji Sofoluwe was recently named one of the Global Top 100 Export and International Trade leaders.
In celebration of Global Africa Day on May 25th, 2024, under the theme “Championing the Vision of Global Africa as a Unified Economic Block and Single Market,” Most Influential People of African Descent (MIPAD) unveiled the honourees list for the 2024 Most Influential Global Top 100 Export and International Trade Edition in recognition of their exceptional commitment to driving economic progress across continents. Please see the full list here: ww.mipad.org/classof2024.
This groundbreaking list celebrates the achievements of Africans who are making waves in diverse sectors. From CEOs forging billion-dollar deals to social entrepreneurs tackling global challenges, these Trade Champions are proving that African ingenuity is a driving force for positive change in the world economy.
For Nigerians and Africans across the continent, this list is a powerful source of inspiration and a testament to the immense potential of the African diaspora in driving economic growth and prosperity.
Bolaji, alongside other prominent African leaders in Trade and Export including Ngozi Okonjo-Iweala, the first African and woman to lead the World Trade Organization (WTO); Dr. Doris Nkiruka Uzoka-Anite, Nigeria’s Minister of Industry, Trade and Investment; Kanayo Awani, Executive Vice President, Intra-African Trade Bank (IATB); Kemi Arosanyin, CGBP, the Director, Trade Development (Africa & Caribbean) at the World Trade Centre; H.E.Wamkele Mene, the Secretary General of the African Continental Free Trade Area (AfCFTA) were recognised for their groundbreaking achievements in trade and export around the world. The full Global Top 100 list is available via www.mipad.org/classof2024
Bolaji’s contributions are truly exceptional, as she excels in trade promotion and holds the prestigious role of Department for Business and Trade Export Champion. As a business growth strategist focused on market expansion and internationalisation, she also provides companies and businesses with the representation and knowledge necessary to enter and expand across African markets. Bolaji has personally spearheaded projects in over 34 African countries.
At ETK Group, we’re not just advisors; we’re your partner in conquering the African market. Our strategic expertise opens doors for companies looking to thrive on this dynamic continent.
ETK Group Limited has announced the launch of Africa’s Next Global Innovation Challenge – ANGIC – an initiative that seeks to identify and bolster sustainable enterprise development and link African innovations and solutions with global challenges.
Focusing on growth-stage ventures with existing products that are solving specific problems in Nigeria, Ghana, Kenya, South Africa, Morocco, or Rwanda, ANGIC will bridge the gap between African ingenuity and pressing global challenges. Through a curated blend of capacity support and access to markets, the innovation challenge will identify and empower growth-stage businesses to scale existing solutions, drive sustainable enterprise development, and make a profound global impact.
Africa Next Global Innovation Challenge
African innovators and businesses hold significant potential to address the challenges faced by Africa. However, they often lack access to investors, essential support, funding, and face capacity constraints. A significant number of small businesses on the continent struggle due to operational limitations and gaps in critical areas of capacity necessary for growth.
In collaboration with The Nest Innovation Park, ETK will implement Africa’s Next Global Innovation Challenge to address these challenges in a bid to give exemplary innovations and businesses from Africa a chance to expand their reach into global markets.
To participate, qualified businesses can enter the challenge by visiting www.angic.etkgroup.co.uk from May 27 – June 28, 2024.
“Our mission with ANGIC is to contribute to the export of innovative solutions and products from Africa to other markets in the UK, US, Europe, Brazil, or other markets around the world. With this challenge, we want to prioritize innovations that are focused on improving sustainability and the socio-economic status of Africans. At the end of this inaugural edition of ANGIC, our aim is to facilitate the successful export of at least four innovative solutions and products from Africa to global markets,” says Bolaji Sofoluwe, Managing Director at ETK Group.
Africa’s Next Global Innovation Challenge will provide selected businesses with opportunities to scale their solution with expert support in research and development, training, and capacity development, access to global markets, access to ETK Group’s network of international partners and industry experts for guidance, as well as the opportunity to accelerate the growth of their businesses with mentorship from ETK and other industry experts around the world.
“These exports are expected to generate a minimum of $100 million in revenue, directly contributing to the socio-economic advancement of African communities. We will ensure that each exported innovation aligns with the mission of improving the socio-economic status of Africans.” Added Bolaji.
About ETK Group
Founded in 2010, ETK is a UK-based Africa-focused trade and advisory consultancy with a presence in 34 African markets. Our vision is to contribute to the growth of African businesses through advisory work and by facilitating access to export markets for businesses of various sizes across the continent. ETK has facilitated market entry and provided market support services to over 200 clients across Africa, the UK, and in other markets. ETK contributes to the growth of African businesses and markets by helping enterprises to expand into other markets and connecting international businesses from other markets with trade and investment opportunities on the continent. ETK provides support to SMEs across diverse sectors with capacity development, sustainability consulting, strategy, planning, and project management and implementation to facilitate growth.
As the world transitions from carbon-based sources of energy to a more sustainable future, demand is increasing for a range of minerals and metals required for the transition to cleaner sources of energy. From uses in home appliances, transportation, construction, electrical components, and medicine to aerospace technology and infrastructure development, minerals are essential components of modern life. In addition to these applications, minerals such as copper, nickel, platinum, silver, gold, aluminium, cobalt, and lithium are used in renewable energy technologies like batteries for electricity storage, wind turbines, and photovoltaic cells for harnessing energy from the sun.
Sustainable Development Goal 7 (SDG7), which calls for “affordable, reliable, sustainable, and modern energy for all,” aims to increase the share of renewables in the global energy mix and ensure universal access to affordable, reliable, and clean energy. The decarbonizing technologies required to transition to wind, solar, batteries, and other sustainable energy sources are driving increased demand for these scarce natural resources, creating significant economic opportunities for countries where the minerals are found but also posing social and environmental risks.
Risks Associated with Mineral Mining
While minerals are essential for the transition to an electrified future, their extraction from the ground creates a range of social and environmental challenges in countries where the minerals are mined. Extractive industries pose risks to human health, water supplies, and ecosystems. Mining can ravage landscapes, decimate biodiversity, lead to human rights abuses, and be a significant source of greenhouse gas emissions as well.
Other risks include deforestation, soil erosion, water contamination, dust, and noise pollution. Land-based mining is encroaching on wildlife areas and accelerating the rates of extinction of endangered plant and animal species. The extensive land required for mining is also impacting indigenous populations and leading to a crisis of pollution and toxic waste in local communities.
Economic Opportunities for African Countries
With growing demand, proceeds from critical minerals are poised to rise significantly over the next two decades. Global revenues from the extraction of just four key minerals—copper, nickel, cobalt, and lithium—are estimated to total $16 trillion over the next 25 years, in 2023-dollar terms, says the IMF. With sub-Saharan Africa estimated to hold about 30 percent of the volume of proven critical mineral reserves needed to power the transition to renewable energies, this means that Africa stands to reap over 10 percent of these cumulated revenues, which could correspond to an increase in the region’s GDP by 12 percent or more by 2050, according to the IMF.
The Canadian Mining Journal on Africa’s mining potential reports that the extraction and export of these mineral resources contribute significantly to national revenues, foreign currency reserves, and employment. Lithium, cobalt, copper, manganese, graphite, and many other critical minerals are abundant in the region. Africa produces over 60 metal and mineral products and has huge potential for mineral reserve exploration and production. Over 30% of the world’s mineral reserves are found in Africa, with practically every country on the continent producing at least one critical mineral. According to the Policy Centre for the New South’s research on Africa’s mining potential, sub-Saharan Africa accounts for around 80% of global platinum production, 50% of manganese, two-thirds of cobalt, and a considerable proportion of chromium.
In spite of the abundance of raw materials, many African countries still export most of the mineral resources in their raw forms. Approximately 70% of mined minerals are exported to Europe or Asia for refining. This shows that local processing options for critical minerals are still limited.
Mining vehicles digging coal: Source freepik.com
Since the bulk of the economic benefit from these minerals is derived from the refining of the raw materials, the greatest economic gains are realized elsewhere. Developing local processing industries could significantly create higher-skilled jobs and increase tax revenues, thereby supporting poverty reduction and sustainable development. Africa can generate even greater windfalls by not only exporting raw materials but processing them as well. Raw bauxite, for instance, fetches a modest $65 per ton, but when processed into aluminium, it commands a hefty $2,335 per ton in end-2023 prices according to the IMF.
In line with this, many governments on the continent are undertaking structural reforms to support domestic companies in mining and related processing sectors to retain greater economic value onshore. This includes implementing policies aimed at restricting the exports of raw mineral resources. For instance, Ghana has implemented a green minerals policy aimed at retaining a greater portion of the value chain from the country’s natural resources. Namibia and Zimbabwe have taken similar steps regarding the export of unprocessed lithium.
Realizing the Gains While Minimising the Risks
If managed properly, the extraction of these critical minerals has the potential to transform the region’s economic status, according to IMF’s latest Regional Economic Outlook. Accessing these critical minerals in ways that minimize the impact on local communities, protect biodiversity, respect the land rights of indigenous communities, protect workers, and reduce the environmental impacts on surrounding ecosystems is essential if we are to create a sustainable future for everyone. Massive wealth transfers of raw materials in ways that negatively impact communities in the global south to the benefit of consuming economies in the global north are not the answer to a sustainable future.
In the last decade, Africa has seen an unprecedented increase in the number of scalable ventures and entrepreneurial activity. This rise is being driven by a new generation of innovative entrepreneurs who are leveraging technology to drive growth and make a significant impact across the continent, as well as attract more investors who are interested in Africa’s potential.
According to Africa the Big Deal, by Q4 of 2019, funding raised by African startups hit $0.7bn, surging to $1.8bn in Q1 of the 2022 financial year, with a total of 125 startups making up this figure. In 2023, African startups raised $2.9 billion in funding, with the big four (Nigeria, Egypt, Kenya, & South Africa) retaining their position as the top investment destinations in Africa. As of February 2024, startups across Africa raised a total of $217 million, representing a 182% increase when compared with January.
Image Source: Moove. The African startup offers vehicle financing for mobility entrepreneurs
Though the investment landscape in Africa offers many opportunities for investors and startups, finding the right partner remains a challenge for investors and small businesses across the continent. Identifying suitable firms or trusted partners is one of the obstacles for investors looking to invest in African startups, while entrepreneurs face the challenge of attracting the right investors to their businesses.
In today’s complex business environment, where even some of the most recognised names compromise on integrity, it has become important for investors and business owners to have the right partners for growth and investments. While it is critical for investors to know the health of the company they intend to invest in, entrepreneurs seeking financing should study potential investors for any red flags.
But what does it take to build a fruitful partnership between African founders and investors looking to invest in African businesses? During our recent webinar on “Fostering Institutional Investment in Africa,” Anthony Osijo, Group CFO of Bboxx, gave valuable insights into how both investors and entrepreneurs may build fruitful partnerships in the dynamic African market.
Image Source Bboxx: Bboxx is transforming lives and unlocking potential by connecting consumers and deploying innovative energy solutions across Africa.
Key insights include:
For African startups and businesses:
Understanding Investors’ Interests: Understanding that different investors have different interests is key to attracting the right investors. The investment goals or interests of traditional institutional investors, like private equity and venture capitalist firms, differ from those of development finance institutions and impact investors as well as sovereign wealth funds. Your investment proposals must be tailored to align with the interests of different types of investors. A recent Morgan Stanley report reveals that more than three-quarters (77%) of global investors are interested in sustainable investing.
Value Proposition: Clearly articulate the value your business brings to the table. Your value proposition should be clear, concise, and compelling. It should be easy for investors to understand what your business does and why it is different from other businesses in your industry.
Long-Term Perspective: Seek investors who have a nuanced understanding of Africa and are committed to long-term partnerships. Pitch for investors looking beyond the temporary market trends in Africa and fusing on the fundamental values and growth potential of the business on the continent. This will help you avoid making impulsive moves toward investors for your business. IMFGlobal Financial Stability Report, which looked at the underlying drivers of investment decisions by institutional investors, found that this type of investor usually have a long investment horizon, with obligations that often stretch out over decades.
Resilience: There are obvious barriers associated with investing in Africa, including governance and regulations. Investing in Africa requires resilience and staying power due to its unique challenges and opportunities. However, there are huge benefits for investors who look beyond the short-term benefits.
Local Expertise: Partner with entities that have a deep understanding of the African market and its nuances. Before partnering with an investor, ensure their values and vision align with yours. A shared vision and core values create a strong foundation for a successful partnership.
Considerations: Focus on companies that have a history of revenue growth and a promising future growth trajectory. Assess growth potentials, returns, and financial propositions when making investment decisions.
Navigating the dynamic African market to form effective partnerships requires a deep understanding of its complexities and nuances. ETK’s due diligence services help bridge the gap between potential investors and African startups, making the journey more streamlined and focused. By aligning interests, articulating value propositions, and creating long-term strategies, entrepreneurs can attract the right investors, while investors can leverage local expertise and resilience for sustainable growth. In this ever-evolving landscape, developing partnerships based on shared values and visions paves the way for mutual success and impactful contributions to Africa’s business ecosystem.
This edition of the magazine consists of 84 pages of specialist advice and guidance. Horizon Magazine UK aims to equip you with the tools to take your international trade to new heights.
Key themes explored in the article include:
👉 Overlooked Potential: Africa’s thriving market has been misunderstood for too long.
👉 Changing Perception: More are recognising Africa as a lucrative business and investment hub.
👉 Diversity as Opportunity: Africa’s cultural diversity offers fertile ground for innovative ventures.
👉 Relationship Building: Emphasising the importance of building lasting connections in African markets.
👉Flexibility in Approach: Adapting strategies to navigate the nuances of African business culture.
It’s truly an honour for us to contribute to this edition of the magazine and to showcase the work that we’re doing at ETK Group to facilitate trade and investment in Africa.
Many thanks to the team at Horizon Magazine UK for consistently producing such useful and informative content in every edition
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Image Source Bboxx: Bboxx is transforming lives and unlocking potential by connecting consumers and deploying innovative energy solutions across Africa.
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