I don’t know what motivational speakers have told you before now but the truth is, building one successful business in Africa is not a ‘yoke’ (in the Calabar dialect).
It is the dream of every African entrepreneur to own a conglomerate or a business empire. Who no like better thing?
Generally, building a business is hard, but building a business in Africa is harder. Virtually everything is against you. The African ecosystem is configured to choke every business to death.
If you doubt it, ask the okada man who must buy waste basket and tickets every morning from the agbèrò at orìta before he can be allowed to operate.
Now, you know why out of 1,200 unicorns in the world, only 7 are in Africa. The USA alone has 645 unicorns (2023 Data).
When it comes to the ease of doing business in the world, the USA ranks 6th, UK ranks 8th and Nigeria ranks 131. In fact, only two African countries (Rwanda and South Africa) ranks in the first 50 countries.
I know you wish to diversify like Aliko Dangote and own 400 companies like Richard Branson, but can you really be faster than the market or maneuver and manipulate the strangulating factors?
When it comes to the game of diversification and putting one’s eggs in different baskets, nobody plays it better than Richard Branson. Apart from being born with a diamond spoon, Branson’s environment favoured business growth and healthy competition. He could easily start a business, scale it, sell it and start another business.
For most of the entrepreneurs in the Western world, their chances of succeeding in business is high. Even if you fail in one business, you can easily bounce back and win again. Wetin you expect before?
Money dey. Stable economy dey. Market dey. Investors and venture capitalists’ full ground yanfu yanfu. Government support sef dey.
No wonder, Richard Branson had the effrontery to drop out of school at age 16, just like Bill Gates, Steve Jobs, Zuckerberg, Ted Turner and the likes.
Here in Africa, dropping out of school means your chances of succeeding in life has been reduced by half.
Irrespective of your race, religion and ideology, family and educational background, you can enter into the Western market and compete freely without knowing somebody who knows somebody.
To build just one business successfully bin Africa is harder than solving Chinese math, not to talk of building several businesses.
The Silicon Valley strategy says, “Fail fast and fail forward.” That is, the more you fail, the faster you grow. My dear, you cannot tell that to an average African entrepreneur who cannot afford to fail at all.
Failure in business may result to hunger, homelessness and his children will be sent out of class because of school fees.
In Africa, you must learn how to grow your business without losing a dime. In fact, no African investor will hold on to you when your business is losing money.
For Branson, entrepreneurship is an adventure. But for I and you, this kind of adventure is a no-go area. Branson failed in several businesses and lost huge money.
His losses were too numerous to be recorded. Nobody can build a successful business without taking risks. How much risk can an average African entrepreneur take?
In Africa, every entrepreneur must complement his efforts with vigils and anointing oil. The government is making all efforts to frustrate your efforts, make the economy unstable and make inflation to pursue and overtake you.
While you are strategizing on how to scale your Fintech, CBN et al are plotting your downfall. While you are thinking of importation and exportation business, you are also praying to find favour before the Nigerian Custom Service.
One Alhaji is somewhere bribing his way to get exclusive rights, whereas you are busy loitering around with photocopies of all your business documents just to seek bank loans.
I don’t mean to hurt you but the truth remains, playing the game of diversification may never work for you in Africa.
Building several profitable businesses successfully in Africa is like asking Rev Father Mbaka to do away with politics. Ko le werk!
Ònà kan ò wojàis the reason why Africa has so many mediocre businesses. You are into digital marketing. You are into shoe making.
Na you be baker. Na you be clothier. Na you be cinematographer. Na every business you wan venture into. Weldone, Uncle Jack. Weldone, Mrs. Gbogbonisè.
Calm down! Focus on one business first. Diversification is not for the powerless, the weak or the poor. If you don’t have anyone who is bankrolling you, please put all your eggs in one basket and watch over it strategically.
Even if you want to diversify, choose one niche and diversify there. Be like TONAD Publishers. Be like Gino. Be like Emzor. Be like Dettol. Be like Eleganza.
Don’t get it wrong. Building a business is different from having investments. In a business, you are actively involved. In an investment, you are passively involved.
You can have multiple investments in Africa but you should never have multiple businesses in Africa. Building a profitable and successful business empire in Africa no be beans. Àtàrí àjànàkú kìí s’ẹrù ọmọdé.
© Kingsley Ndimele
Your Reliable Consultant