BUSINESS DRIVEN BY NEED
the best business opportunities in 2024
Africa is open for business, but you must be brave, hunt in the wild and Don't be prey.
Tues.Jan.9.2024 - Ubochi Afor
This article focuses on big business because these are the ideas that can change Nigeria and Africa. Even if you do not have the capital for big business, still read it. The best ideas can often be built by anyone willing to start with whatever they have. Such is the story of my own life.
The year 2024 opens up with Nigeria and West Africa reeling with the effects of subsidy removal and a general decline in currency valuations in relation to the U.S Dollar, British Pounds etc.
It also opens to a fragmented sub region, with the effects of coups and mathematically alien political transitions forcing closed borders between brothers and a general mistrust of alignments as some move closer to the very colonial masters others are running for.
Above these hang the general uncertainty of the world and the effects on an Africa that seems to be at the Receiving end of Turmoil. With leaders who compromise on our interests in response to global events, leading to repercussions beyond our genuine involvement, for events like 9:11, the 2008 global financial crisis, the fake pandemic of 2019 and now OfCourse every reaction of the U.S treasury and European Central Bank to their self imposed crisis of inflation, driven by their ill Advised adventures in Ukraine.
Pick what you wish from my last comment, I do not write to be politically correct, but to guide my people on the prevailing issues in the world and how best to navigate it. This article is not about Russia and Ukraine, although my thoughts on that are clear (U.S wrong, Russia, right). No matter your position on the matter, remember that my comments are made in passing. The main point of this article is simple.
As the world is today, what opportunities do they present for the African Businessman, in 2024.
The opportunities are unlimited, as such I will deal with the top 7 opportunities, presented by the current remodeling of the Global order, the West African political dislocations and Nigeria's crash course in how to kill an economy.
SUBSIDIZE THE PEOPLES TRANSPORTATION
Home to the world's most travelled tribe (Igbo People), the Akanu Ibiam International Airport in Enugu has fewer daily flights than any city airport in all of North America.
In my 12 years of return to the home land, I have never seen opportunities in transportation, as I do know.
From Air travel to Long haul buses and most importantly bicycles. The opportunities are immense, and include other enterprise possibilities in transport but I will focus on Regional Air Travel, Long Haul Buses and Bicycles.
It is strange that no one has thought to deal with the extreme opportunities provided by Nigeria, West Africa and much of Africa's very expensive aviation markets.
The expenses are not without reason. Our Bureaucracies And Inefficiencies Add Immense Cost To Any Airline Operations But These Do Not Justify The Inability To Develop Flights Between Enugu And Owerri, Ghana And Enugu, Enugu And Dakar.
Inefficiency and bureaucracy applies to all players in the market as such they are not a valid excuse of inadequate participation. The issue is more that Nigerian and African businessmen have gotten so used to eating the low hanging fruits that they fail to build ladders for the juicy fruits up above.
The inherent opportunities in regional aviation can only be covered by an airline with a massive fleet, this means a full range from 12 seater propeller planes to A380's and massive logistical infrastructure to include a participation in the petrochemicals sector as an operator or core investor in Aviation fuel trading and storage.
These can also be achieved by 3 sets of investors in partnership, as the twin challenge of fleet range and fuel control are the greatest eco-systematic challenges to aviation. The average Africa businessman with funds to power the entire eco-system would much rather use the funds to acquire an oil well or open a bank or do someother thing he thinks is low hanging fruit and this must stop.
These low hanging fruits are not juicy. Neither are they useful for the growth and development of Africa.
In my analysis, the opportunities inherent in getting aviation right in Africa, far out strips the returns of any Bank in Africa today.
It is important to note that all over the world, aviation is an unprofitable business, returning terrible real cash margins on incredible cashflow, however in Africa, aviation can actually be profitable. This Profitability is locked in the complexity, bureaucracy and inefficiencies which means that optimizations and efficiencies alone can create market leading margins of cash profit.
To simplify this let me rephrase. Whereby inefficiencies in fleet range exist in all African airlines, any airline that can optimize its fleet can record the savings as income. Whereby bureaucratic challenges inflate the cost of operations for all airlines, massive fleets will allow discounts on individual flights that will leverage volumes to create competitive advantages and snatch greater marketshare, further multiplying the income achievable and easily beating the competition. Whereby fuel prices increases for all airlines, interests in aviation fuel allows secondary profits on the core raw material of aviation and ensures income even in the tightest markets.
Yes, this is a simplification of a very complex topic, as such I will at some point do a dedicated article on the opportunities in African aviation. For now, manage this sound bite, knowing that it is a summary explanation, founded on a truly intricate and detailed evaluation of the aviation opportunities in Africa.
In general, when you look at Africans as people and not merely profit, you will find untold profits, hidden in the missed opportunities of the incredibly simple solutions to our dramatic degree of under development.
Ekenedilichukwu Motors used to be the largest Interstate transporter in Nigeria, in the hay days of luxury 52-Seater Buses and Double Deckers.
In Long haul transportation, the gap between Diesel Fuel and Petroleum Motor Spirits (PMS Fuel) had made it reasonable for small buses to ply the West African Roads on routes that used to be dominated by the Luxury, Large buses of Ekenedilichukwu Motors, The Young Shall Grow and the like. This is no longer the case with Nigeria's removal of fuel subsidy. As such this is a wonderful time for smart people to develop new long haul transport companies that use Diesel Fuel Vehicles.
If Nigeria and West Africa returned to large capacity Luxury buses it will do wonders for our roads, Traffic conditions, Air quality, Accident mortality and General economic efficiencies of travel and transportation. It will also do wonders for the companies and people who are able to restore the prominence of these great movers to the West African Highways.
Again this is a simplification of a massive business opportunity, as such when the chance arrives, I will address the opportunities in long haul land transport in Nigeria, West Africa and Africa, again.
Finally and most opportune is the incredible opportunity that is Bicycle manufacturing in Nigeria.
Anybody who claims that Nigerians/African are too proud to ride bicycles to work, must not have met them - to eat, we do a lot that is more humiliating than riding a bike in a suit.
With the removal of fuel subsidy and the incredible economic gap between the citizens purchasing power and the cost of travel, any solution that can take the cost of travel and return it to the citizen as additional labour earnings will be appreciated.
What do I mean?
I mean that the average Nigerian security man would rather peddle 20 kilometers and use the ₦1,000 transport fare to eat a good meal, than to give it to Buses and Taxi drivers.
Given the chose of working more, or paying more on transportation, the average Nigerian would take the additional work of being his own vehicle, than to pay for the "Luxury" of transportation and then struggle to eat a good meal or pay his rents.
It is unfortunate that no one has looked into the inherent opportunity of creating a large scale, economy, Bicycle manufacturing plant in Nigeria to provide bicycles to the average Nigerian at a manageable cost and in tow make a killing by murdering the wasteful expenses that most of the working class encounters today, on the road to work.
Again, this is a complex topic, as such next week, I will do a full article on the opportunities in Bicycle Manufacturing in Nigeria, because I really believe that someone has to do this. I would do it now, but we already have over $20billion of projects in the pipeline, and I would like to stay on course, but here is my threat to all the slow businessmen out there - leave this opportunity unattended next year and I will beat you to it - but please do it before me, our people need the solution and the money you will make is incredible.
While Each Of These Represent Complex Enterprises, The Lack Of Serious Players And The General Apathy To Advanced Enterprise Developments By Africa's Richest Men, Make It Possible For Any Small Time Businessman With Good Business Acumen, Who Is "Mad" Enough To Believe Me, To Start On Any Of Them From The Smallest Possible Point, And If Focused, In 10 Years He Can Be The King Of The Market Because Those Who Were In A Better Position To Compete With Him, "Japad" Or Are Busy Looking For Government Allocated Lands To Build And Sell.
HIRE FROM THE JAPA POPULATION
Anyone who can run abroad, can fly at home. (Image: Kelvin Doe, a Sierra Leone Wizkid that has been trilling the world since the age of 13 - We could have kept him and many like him, if we start to gamble on our own.
one of the greatest opportunities in Nigeria is in finding a way to optimize and grow your business by retaining the Japarin population.
Many of the Young Doctors, Engineers, Artists, Architects etc., that we are loosing to foreign lands, represent the best and brightest who have measured their prospects in Nigeria and found that their value is never going to be rewarded. They are incredibly hard to manage because their eyes are already set abroad but if you happen to find one that has not yet exited, whose skills and abilities far outpace your other staff and who seems not interested in the idea of life abroad but is only fixated on the income difference. If this young man or woman has strong roots in Nigeria/Africa, like a Marriage, Fiancé, Loving parents, Social Commitments etc., then here are my suggestions.
Consider them a visit to the casino and take a leap of faith.
Bring them Onboard and find a project for them in your organization that is suitable to their interests. Give them creative freedom, a little more professional flexibility and some protection from the crowds and management in your organization, evaluate their compensation such that it is based on their abilities and rate of advancement and not your traditional pay model.
Good luck. if your gamble works you will end up with an excellent addition to your organization that has no place to go but you because most of our Businessmen would never match your value and compensation of them. If you are lucky, they will work well, be loyal, have appreciation and make impacts in your business the likes of which you can never imagine.
You must do this with commitment and work hard to show them the integrity of your interests, being that we live in a low trust environment.
The performance of an excellent Nigerian worker, who understands Nigeria and still operates at international levels of proficiency and professionalism far outpaces the low rate foreign migrants that many of our organizations call Expatriates and pay wastefully to do what many Nigerians, here at home, can do better.
The boys that Japa today, lead their professions in America, Germany etc., maybe if you can tool them to work for you, you can lead your industry in Nigeria.
What's the worse that can happen? You loose some money betting on our best. That sounds like a good game of Cards to me.
START A LAW FIRM
Named as the 2nd most prestigious law firm in America by Business Inside in 2013, the Law Firm of Cravath, Swaine & Moore LLP, employees over 450 people and cannot fit in a large mansion, talk less of the 3 bedroom apartments that house many offices of SANs, it is however not nearly the largest firm in America, many less known firms staff over 1,000 people.
In a country where the Supreme Court cannot be trusted, do I really need to explain why "A legally Excellent, integral, economic and branded law firm, with the service predictability of a supermarket" is a good idea?
Yes, I mean running a supermarket where people can "bUY" good law, or shall I say "predictable grade, legal representation".
Yes, this is an actual and immense need in Nigeria and Africa as a whole.
In Nigeria today, very few law firms are true corporate entities with branded offerings, predicable service quality and any assurance of competence and integrity.
Hurry and take this advice, because I may well be your 1st client as am sure that firms like Aluko and Oyebode, Banwo and Ighodalo etc., that have large, corporate firms may quarrel with this article, but in fact, such firms are few and far between. (this mention is not in anyway an Endorsement of either firm or lack thereof).
While for generations Nigerians have been watching Law and Order, the Good Wife and other legal and Police dramas from the good old U.S.A, it seems that few have learned anything about making the business of law "a business" that stretches past the overarching personality of any particular individual into the collective expectation of excellence from a "known" brand, such as you may expect from a brand of Ice Cream.
Nobody needs to meet the owner of Emirates to fly it, nobody needs to meet the owner of Nike to wear it, these are brands and represent an expected minimum standard of goods and services.
Across Nigeria and Africa at large, there is a gapping hole for a wide reaching branded law firm or even several, where the general client pool can come with confidence that if the fees are paid, the legal services will be excellent, furthermore, and equally as important, that the Other side can never win by simply buying off your lawyers.
The corruption in Africa, presents this opportunity in wide gapping scale, for local, Regional, National and even continent provision of nitche or general legal representation that the people can trust.
Yes, I know that the legal code in Nigeria prevents certain levels of advertising by lawyers, but when has that ever stopped you guys during elections for NBA chairman and furthermore, I was never recommending that a lawyer own this firm. Make it a business, take the lawyer out of it, keep the law in tact and above all, while fighting to uphold the law, let it be a law in your chambers, that the client deserves the truth, the whole truth and nothing but the truth, this backed by excellent delivery of legal representation, is an economic gold mine.
Start it today and I will move my legal needs to you - no offence to my current counsels.
START AN ADVERTISING COMPANY
Even simple sign board, "we dey import".
did you know that 99% of online advertising on Nigeria websites is dominated by Google, Meta and Amazon owned services. This is ridiculous when you recognize that they do not even have such market share in their own country of the United States of America. Google alone controls about 80% of the Nigerian Market and similar or worse for most of Africa.
In the world of Billboards, there is no single company in all of Nigeria, that can genuinely connect you with Billboards, all across the country.
just incase you think, I am just sharing ideas, we are actually building an Advertising Network for Africa, so I am deeply invested in this idea. I also will not mention the name of our Advertising Network, so that you don't think am merely trying to advertise it.
Build your own, and if it is better than ours, we will gladly patronize you, but let us make this an African opportunity, owned by an African brand or Brands.
Advertising is the base rock upon which Media and Sports survive, as such the fact that we have poor representation in Online media Advertising means that we have no internal ability to develop Media and Sports brands that can compete in the modern era with whatever these foreign entities introduce.
Again, I wish that one of you would hurry and start that law firm, just incase I get sued by Google.
The scale of the opportunity in Advertising is better understood when you recognize that the biggest attractions in Africa and the world, like the European Premier League, YouTube, CNN, the Olympics and the Massive Earnings of Christiana Ronaldo, Tucker Carlson and your favorite musicians are driven by advertising revenue.
SELL FOOD IN A SUIT
Image: Mr. Patrick Sosu the corporate corn seller in Ghana, alias SP in 2016 - Pictures by Kobby Blay
Yes, am just being funny, but I am also serious.
Africans have relegated Agricultural logistics to the least cultured among us, as such much of the Tomatoes produced, Vegetables, Fruits and all manner of fragile products where cleanliness is a plus and planning is a must, is inflated in the marketplace due to waste.
I speak from experience. not too long ago I was engaged in the distribution of Agricultural products including, Grains, Meats, Fruits and Vegetables, at a much smaller scale than what we are now doing. In that time I recognized the terrible inefficiencies in the way in which we buy and sell foods, especially the fragile and Hygiene sensitive ones.
Fruits, Vegetables and Meats in Nigeria and raw foods in general, needs formal logistics, transport, storage, sorting and distribution in Nigeria. It is angrily awaiting a man in a Suit or Agbada who will use computer code, airconditioned trucks, Corporate finance and a team of posh, conscious and clean personnel to optimize, Sanitize and Economize the Acquisition, logistics and trading of Raw Foods in Nigeria and Africa.
Ofcourse there are corporate brands that deal with supplying Corporate Restaurants, Hotels, Governments etc., but am not talking about this.
In a continent where the informal sector makes up 80% + of the economy and 95% in the food trade, their is much more room in cleaning up the supply for Markets, Street traders and "Mama Put" Restaurants.
Again, this is a simplification, but kindly step into any market in Africa, look around for yourself and smell the opportunity, in fact you can see it Every time the market closes on a woman with 4 baskets of over ripe tomatoes that will not make it to the market tomorrow.
THE FARM ITSELF
Even in America, China and Russia, the modern farmer looks more like him and illiterates cannot survive the competition of a global farmer's market.
Africans have a complete commitment to making excuses, where we should be making money.
Everyday I hear of a reason why we should not farm this year.
Cattle Herds eating Crops, Cattle Herder killers, Bandits, Dams that flood, No Fertilizer, Access to land and on and one.
While all of these represent legitimate concerns, they are not a good enough reason for any businessman that has a good calculator to pass up on the massive feeding opportunity that is Africa and the deep, Dollar denominated returns, it is hiding.
Where insecurity is the challenge, a serious investor should see the insecurity as an input in cropping. Consider it manure and budget it into the costs of Agriculture. Take time to design modalities and protections like artificial bodies of water on the edges of your farm, where you can raise Crocodiles for meat and also in the same vein ensure that any Cattle Herder that visits your farm with his cows, will only succeed in providing you with good meat in exchange for minor crop damage that can never equal the cost of meat.
Develop relationships with security agencies, develop the youth of the local community such that they have an interest in your survival, engage with the local goons and bandits, create management layers that limit access to you and your schedule.
Do whatever you must, but do not run, Africa needs food and we cannot expect Indians or Americans to come and risk their lives in our villages. Furthermore, as the cost of food inflates to match the import rate of the imported options, the few who can build commercial farms and survive the sticky mud of Bandits, Cattle etc., will find that the profits achievable in producing in Naira, products that are now chasing the dollar, is incredible. in Naira terms, it is 1,200 times incredible and much more in the rest of Africa.
Feed us and take our money, why are you running, If cows are bothering you, deal with them and maybe even add cows to your farm, ranching is by far more efficient than the dangerous life of the Herdsman. If bandits are bothering you, what do you call the money you pay to Customs officers, when crossing the border with your contra band? Call the money you pay the Bandits the same thing, or give it to Soldiers, so that they can settle each other.
Again, can someone please start this law firm, I just added Customs and the Army to my expanding potential list of court cases.
CONTRA BAND
It leaves like this and comes back like that. We sell low and buy high - that is against all known laws of economics.
speaking of Contraband, Nigeria currently imports "FURNITURE", sorry I mean "Our wood, that had been exported to Britain and China and returned as 'refined' versions of the local Iroko Tree", whose finished pieces cost more than the full tree.
The stupidity of our import collections are ridiculous. Everything from Basic Wood Furniture and Materials, to Ceramic Wares represent simple technologies of the 1700's that we can easily backward integrate with our teeming manpower availability, low wages and the simple fact that they are often both Contraband and Bulky imports that make them terribly prohibitive to import and consequently cost efficient to substitute.
With a specific focus on Furniture and Ceramic wares, which are basically Wood and Sand, it is terrible to think that we have not been able to reverse the importations of such nonsense.
If innoson can manufacture cars in Nigeria, with the energy intensive nature of car manufacturing and the skill and precision engineering of their assembly, I believe that "YOU" can put together a massive warehouse with enough hammers, Nails and Saws to kick Chinese Chairs out of your Village.
Again, I speak as if it is simple, both because I am presenting 7 massive opportunities in this one brief article, but also because it is this simple.
WHY IS IT SIMPLE?
Because, While Each Of These Represent Complex Enterprises, The Lack Of Serious Players And The General Apathy To Advanced Enterprise Developments By Africa's Richest Men, Make It Possible For Any Small Time Businessman With Good Business Acumen, Who Is "Mad" Enough To Believe Me, To Start On Any Of Them From The Smallest Possible Point, And If Focused, In 10 Years He Can Be The King Of The Market Because Those Who Were In A Better Position To Compete With Him, "Japad" Or Are Busy Looking For Government Allocated Lands To Build And Sell.
BDN - ARTICLES PROFILE
i Practive Oranomics and not Ecconomics. Oranomics is my restoration of African financial and Trade ideologies adapted into a course of study that I wish to introduce into our schooling system.
While Economics is "The Study of Lack", also called suppy and demand, Oranomics is "The Study of Abundance".
It is my firm belief that there is enough resources to go round the world 3 times and that we have no need to engage in combative business practices.
A focus on need, is all you need to find the businesses of the future and seal your position in the annals of time... Profitably.
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BDN - ARTICLES PROFILE
i Practive Oranomics and not Ecconomics. Oranomics is my restoration of African financial and Trade ideologies adapted into a course of study that I wish to introduce into our schooling system.
While Economics is "The Study of Lack", also called suppy and demand, Oranomics is "The Study of Abundance".
It is my firm belief that there is enough resources to go round the world 3 times and that we have no need to engage in combative business practices.
A focus on need, is all you need to find the businesses of the future and seal your position in the annals of time... Profitably.
BDN - ARTICLES PROFILE