Category: News

  • 23rd November, 2023
  • 4 min reading

Lagos means different things to different people across the world. To some, it is the heartbeat of Africa’s economy, the place where everything in Africa goes to ‘ make it’. At the same time, others see it as a missed opportunity to be more than what it currently is. We can offer many other descriptions of what Lagos is, but one thing most people will agree on is that Lagos is unlike anywhere else in the world.

Lagos is Nigeria’s biggest economy and is responsible for around 20 percent of the country’s gross domestic product (GDP). If Lagos were a country on its own, it would be in the top 10 economies in Africa. Lagos is Nigeria’s commercial capital and is known for its high energy and vibrancy, with a significant influence on commerce, entertainment, technology, education, politics, tourism, art, and fashion across the continent.

This year, Lagos was featured as the first African representative in the 800-year-old Lord Mayor’s Show in London, with organisers saying Lagos was invited to participate in the London procession because of the state’s “growing economic prominence.” Lagos Governor, Mr. Babajide Sanwo-Olu, said his state’s participation was an invitation to the world to explore “the myriad of opportunities” available in Lagos. “Lagos isn’t just open for business—it’s open for transformative, groundbreaking projects that shape the future,” he added.

For context, the Lord Mayor’s Show is one of the most iconic events in London. It is an annual ceremony that dates back to the 13th century, and it is held to mark the first day in office of the Lord Mayor of the City of London (not to be confused with the Mayor of London, who has a complementary but very different role). The event is the ceremonial procession from Guildhall (the ceremonial and administrative centre of the City of London) to the Royal Courts of Justice, where the new Lord Mayor swears allegiance to The Crown. Basically, it is a big deal, and it is used as an opportunity to spotlight interests, investments, and partnership opportunities within the city and further afield.

For Lagos to be on this platform as a standalone entity and for the accompanying messages to follow suggests an intentional attempt to push a strategic narrative about Lagos as a powerhouse in its own right. Historically, the story of Lagos has been embedded in the wider Nigerian story. So this Lagos-specific narrative represents one of the most significant global showcases of Lagos in recent times.

It is not uncommon for cities and states to pursue their own interests. Cities like Paris and New York are known to have their own unique narratives that are independent of the wider narratives of the countries they represent. Incidentally (or perhaps intentionally), The Lord Mayor plays a key role in ensuring that the City of London remains a global hub for finance and professional services, commerce, and culture. Perhaps Lagos is making a play to be mentioned in the same breath as these cities?

Also, when you consider that Nigeria’s new President Bola Ahmed Tinubu (from the same political party as the Lagos state governor) has made a lot of consistent noise about his desire to open Nigeria to increased foreign investment, the message that the country’s biggest economy and shining light is open for business can be seen as a call to action for global investors.

However you look at it, there is no shortage of opportunity in Lagos. There is also no shortage of challenges and hindrances to success. For Lagos to truly fulfill its potential, it will need more than international spotlighting. It will need to address some of its well-documented challenges, including those listed below.

  • Infrastructure deficits: Nigeria’s infrastructure, in general, is underdeveloped, which can make it difficult to transport goods and services. Lagos State will need to make significant progress on this front to make it easier for investors to come in. Otherwise, the cost of developing their own infrastructure, such as generators and water pumps, may become a hindrance to potential investors.
  • Currency volatility: The Nigerian naira is volatile, which can make it difficult to predict returns on investments. This exposes investors to undue currency risk and can also be a hindrance to making any significant long-term commitments.
  • High taxes: Nigeria has a high corporate tax rate, which can make it difficult for businesses to make a profit. The head of a tax reform committee set up by the new administration recently announced that the new regime is aiming to reduce the number of taxes levied by federal and state governments from more than 60 to fewer than 10. This would be a very helpful development if it happens.
  • Lack of skilled labour: While Lagos fares better than most of Nigeria, the shortage of skilled labour makes it difficult to find qualified workers. For companies looking to succeed and grow in Lagos, they have to spend the required time properly vetting candidates to be hired and prioritise getting referrals from their professional network to find the right talent.

Despite these challenges, Lagos still represents a very exciting and promising prospect. With a rapidly growing population, a burgeoning middle class, and a strategic location in West Africa, Lagos presents an attractive landscape for investors seeking high-growth opportunities.

  • Real Estate: Real estate remains a cornerstone of investment in Lagos, driven by urbanisation, population growth, and increasing demand for housing and commercial spaces. Investing in residential properties in high-growth areas like Lekki, Ibeju-Lekki, and Ajah can yield substantial returns over time. Commercial real estate, including office spaces, retail spaces, and warehouses, also offers lucrative prospects due to Lagos’s thriving business environment.
  • Technology and Innovation: Lagos has emerged as a hub for technology startups and innovation, driven by a young, tech-savvy population and a supportive entrepreneurial ecosystem. Investing in tech startups or innovation hubs can provide access to high-growth opportunities in areas such as fintech, e-commerce, and agritech.
  • Infrastructure and Construction: As Lagos continues to expand, investments in infrastructure development, including road construction, housing developments, and commercial complexes, can be profitable. The government’s commitment to infrastructure projects creates opportunities for private sector involvement in financing and construction.
  • Agribusiness and Agriculture: While Lagos is an urban centre, there are significant opportunities for agricultural investments in the state’s rural areas. Poultry farming, fish farming, and agribusiness in areas like Epe and Ikorodu offer promising avenues for investors seeking exposure to the growing food and agriculture sectors.
  • Tourism and Hospitality: Lagos’s vibrant culture, diverse attractions, and growing tourism industry present opportunities for investment in hotels, serviced apartments, and short-term rentals. Areas like Victoria Island, Ikoyi, Lekki, and Ibeju-Lekki are particularly attractive for hospitality investments due to their high tourist traffic and demand for accommodation.

There are so many other opportunities that make Lagos attractive and validate what seems like a push to establish itself as a global powerhouse in its own right. However, without the issues being addressed, the conversation about unfulfilled potential may linger for longer than Lagos State’s leadership may desire.

Images Source: Voice of Nigeria https://bit.ly/3Rdh3Qb and Nupo Deyon Daniel on Unsplash

  • 22nd November, 2023
  • < 1 min reading

The benefits of a diverse workforce are increasingly evident, as more women have joined the global workforce in recent years. This shift is also reflected in the changing landscape of women’s senior leadership roles.

According to the World Economic Forum’s Global Gender Gap Report 2022, there has been a steady global increase in women’s share of senior and leadership roles over the past five years (2017–2022). The global gender parity for this category has reached 42.7%, the highest gender parity score recorded. Despite this progress, women hold less than a third of leadership positions worldwide.

In a recent interview with BBC NewsBolaji Sofoluwe, our Group Managing Director, stressed the significance of “more women going for senior positions.”

Bolaji, recognized on Power Media’s Black Powerlist 2024 as one of Britain’s 100 Most Influential Black People, discussed the importance of having “women who look like me in the boardroom.”

She shared insights into her various roles, including being the chairwoman of a women’s forum, chairwoman of BGEN International , and a mentor at the UK Research and Innovation

You can read the full interview here: https://bbc.in/49MRcpu

  • 26th October, 2023
  • 2 min reading

Sub-Saharan African countries have faced yet another difficult year in 2023. For a region still recovering from the COVID-19 pandemic and inflationary shocks from Russia’s war in Ukraine, which have resulted in higher interest rates and lower demand, economic growth is expected to be slow. According to the International Monetary Fund (IMF), Africa’s growth rate in 2023 is predicted to be 3.3 percent.

However, there is reason to be optimistic, with the IMF Regional Economic Outlook for Sub-Saharan Africa projecting a rebound to 4.0 percent in 2024, with growth picking up in four-fifths of Sub-Saharan Africa’s countries and strong performances in non-resource-intensive countries. Africa’s macroeconomic imbalances are also improving, owing mostly to lower inflation and more sustainable uses of public finances.

Is it time to celebrate?

While the projection calls for some sort of celebration, the IMF has cautioned that growth is not inevitable because obstacles such as financial constraints, higher debt payback costs, and expensive debt servicing remain.

The IMF suggests that Sub-Saharan African nations could delay the predicted economic rebound due to a slowdown in their reform efforts, rising political instability, or external risks that might harm growth potential. To achieve the anticipated increase, the IMF has proposed four policy actions.

Managing inflation: To start with, inflation remains in the double digits for 14 African countries, which is far higher than the target in most countries. Addressing inflation in countries where inflation is firmly on track to target levels may be required, whereas monetary tightening may be required in nations where inflation is growing until there are clear indicators that inflation is dropping.

Managing exchange rate volatility: Exchange rate fluctuations remain a major concern across Africa, causing significant challenges for businesses in the region. The IMF has proposed aligning monetary policy demands with the anchor country in order to maintain external stability and avoid further reserve losses. Currency movements in countries with floating exchange rates should be allowed to adjust as much as feasible, because efforts to block fundamental-based movements come at a high cost. Other policy measures, such as tighter monetary policy to keep inflation under control and structural changes to enhance the export industry, should accompany the adjustment, according to the IMF.

Debt management and prudent spending: Debt management while making room for development spending African countries’ debt risks are increasing. Borrowing rates are still high, and rolling over debt is a burden for African countries, with half of the region’s low-income countries at high risk or in economic crisis. Effective domestic income mobilisation, a deliberate approach to expenditure, careful borrowing, and debt restructuring may also be required.

Raising living standards, especially in resource-rich countries: while the recovery is underway, economic disparities within the area are expanding, with per capita incomes in resource-intensive economies remaining subdued. According to the research, increasing income per capita through structural reforms such as strategic investment in education, better natural resource management, improved business, and a true commitment to trade integration will guarantee the growth projection, according to the IMF.

To ensure that the coming rebound is more than a passing fad, African countries must heed the cautions of the global finance agency in that economic stabilising policies are put in place while focusing on reforms that address the region’s development needs.

Photo by Douglas Bagg  and Joecalih on Unsplash

  • 24th October, 2023
  • 3 min reading

On October 18, 2023, the second edition of the UK-Francophone West and Central Africa Trade and Investment Forum was held at the IET Savoy in London. The event was organised by UK Export Finance (UKEF), the UK’s export credit agency, and DMA Invest, and it brought together prominent representatives from Benin, Cameroon, Côte d’Ivoire, the Democratic Republic of Congo, Guinea, Senegal, and Togo to discuss new trade and investment opportunities with their UK counterparts.

The event included a variety of discussions that focused on the UK’s offer to Francophone West and Central Africa, its strength and depth, women and youth development, de-risking and mobilising private capital to drive growth, and various opportunities across sectors and countries. The event’s purpose was clear: the United Kingdom was making a huge pitch to Francophone West and Central Africa, and the region was open for business.

Speaking ahead of the event, the UK’s International Trade Minister, Nigel Huddleston, intimated that “West and Central Africa is a huge investment opportunity for the UK”. He added that “the Francophone markets have a clear vision for delivering economic growth and prosperity, and the UK is ready to support those countries by building long-term, modern partnerships that are mutually beneficial.”

Many people might raise an eyebrow at a trade relationship between the United Kingdom and Francophone West and Central Africa. However, in light of current world developments, the timing of these discussions makes more sense. On the one hand, the desire from Francophone African countries to seek additional economic and political allies outside of France has grown in recent years. The French continue to be the de facto partner for the majority of Francophone countries, but there appears to be a greater demand for other partners these days. In contrast, post-Brexit Britain is looking to create new relationships to drive economic growth. In contrast, post-Brexit Britain is looking to create new relationships to drive economic growth. The UK has also set an ambitious objective of £1 trillion in exports by the end of the decade, which will necessitate finding new markets to sell goods and services in.

A deeper examination of trading and investment flows reveals a potentially win-win situation. For example, of the £5 billion invested in Africa by UK Export Finance in the last five years, £700 million has gone to Francophone West and Central Africa. Various Francophone African countries have also achieved tariff-free and quota-free market access for crops such as bananas and sweetcorn, offering an effective route-to-market for African agricultural exports in the UK.

At the same time, economic growth in the eight-member West African Economic and Monetary Union is projected to rise to 7% this year as many of the countries recover from the shock of the Russia-Ukraine crisis. When you consider the United Kingdom’s experience in other regions of Africa, as well as the continent’s much-reported increasing middle class, establishing a trading connection that covers the continent makes a lot of sense.

It is also worth noting that there has been a big push (driven by African countries) to transition the continent towards greater industrialisation. The African continent as a whole has developed a reputation as a destination for raw materials that are typically traded with other countries for various stages of refinement and value addition. In many cases, these refined raw materials are then sold back to the continent. However, this narrative is beginning to change, with increasing investment in local processing and refinement facilities on the continent. There has also been significant growth in the continent’s financial services and creative industries, offering significant trading and investment opportunities.

The necessity for successful collaboration, rather than the old “we will build it for you” approach that hasn’t served Africa’s interests well over the years, was a frequent topic throughout the keynotes and fireside chats. Several delegates consistently stated that only a collaborative effort will result in a win-win outcome for all stakeholders.

Another recurring topic was the necessity for reliable partners on the ground to support project delivery. According to the conversations during the event, there was definitely a desire for UK companies to investigate the Francophone West and Central Africa region, and the region was also open. However, because this is a new relationship, some resources will need to be committed in creating the essential trust and confidence on both sides before everyone can transact efficiently.

If the meetings in the foyer are any indication, it is safe to believe that the event is already producing results. It should be noted, however, that this is not the first conversation regarding opportunities in Africa. Many of these occurrences have occurred over time. What is frequently lacking is the essential work and commitment to turn these opportunities into jobs and other tangible realities. As previously stated, for this cooperation to thrive, it must be mutually beneficial, based on respect, and take into account what the respective countries want and need.

  • 10th October, 2023
  • 2 min reading

We are building an Africa-focused Environmental, Social, and Corporate Governance (ESG) framework that will help companies meaningfully measure how they are performing with respect to the non-financial risks and opportunities inherent to their day-to-day operations.

At our recent partner event in Lagos, Nigeria, ETK Group Managing Direct, Mrs. Bolaji Sofoluwe, unveiled our new ESG framework for assessing companies using a series of guided questions and assessments. She revealed that “while none of the existing frameworks have implemented a scoring system, ETK Africa-focused ESG framework intends to align with best practices to ensure that the scoring system is reflective of what is adopted internationally”.

Brent Barnette, Operations Director at ETK Group, also highlighted the importance of an Africa-focused ESG approach to drive better results for businesses, including a variety of baseline assessments such as materiality, risk, and impact of supply chain challenges, as well as strategy development, implementation of mitigation and adaptation plans, and other services to ensure meaningful results for businesses.

The event also explored the need for managed services solutions to support businesses and entrepreneurs to successfully run their operations while they are temporarily or permanently away from the country their businesses are located in.

ETK Group is a market expansion, trade, and development consultancy provider positioned to contribute to the growth of the African business market by bringing great business opportunities from around the world.  We are the leader in Africa in market entry and business expansion and the go-to-market entry partner for businesses globally. ETK supports global and local businesses with effective strategy, planning, implementation, and e-consultancy to enable seamless and successful expansion into and across Africa.

We are strategically connected to international markets, which offers unique and lasting value to its clients. It has also delivered projects in 34 African markets and influenced over $1 billion worth of deals, making us one of the most prolific service providers in the African space.

ETK ConnectXperience was our second event in Nigeria, and it presented various partnership and networking opportunities to enhance businesses’ competitive edge and fuel their growth in the global marketplace.

Notable guests at the event included representatives of the Bank of Industry, the International Finance Corporation, Mastercard Foundation, General Electric, Africa Prudential, and other reputable organisations.

  • 5th October, 2023
  • 2 min reading

Soilless Farm Lab, based in Awowo Abeokuta, Ogun State, Nigeria, is making significant progress with its Enterprise for Youth in Agriculture (EYiA) initiative.

Recently, the project received and hosted the ETK team at the facility. On this routine visit, Team ETK was led by our Group Managing Director, Bolaji Sofoluwe, as part of our activities in supporting the successful delivery of the project as well as enhancing the capacity of Soilless Farm Lab.

At its core, the Mastercard Foundation-supported Enterprise for Youth in Agriculture project significantly contributes to the realisation of the Mastercard Foundation Young Africa Works strategy. The project is designed to provide dignified and fulfilling employment opportunities for over 30,000 youths, especially women, by equipping them with valuable skills and inputs in vegetable production over a period of three years. The project focuses on cutting-edge technologies like greenhouse and soilless farming, integrated pest management, and leveraging modern farming tools and artificial intelligence (AI) for increased food production.

ETK Nigeria proudly supports Soilless Farm Lab by providing institutional capacity enhancement (ICE) and project management oversight which is critical for ensuring attainment of the project’s objectives. Through our collaboration, we ensure that our partners receive the support they need to thrive and create the desired impact set to be achieved thereby leaving a lasting imprint on Nigeria’s agricultural landscape.

During the recent visit, the ETK team assessed the level of progress made and how our work is contributing to the institutional capacity development of Soilless Farm Lab. The visit also presented us with an opportunity to review the overall project performance and reaffirm the objectives set forth by the MasterCard Foundation to be achieved by the EYiA project.

You can read more about the Enterprise for Youth in Agriculture project and the transformative impact it’s making here https://sfarmlab.com/EYiA/

Together, we’re sowing the seeds for a prosperous and sustainable future for Nigeria’s youth and agricultural industry.

 

 

  • 4th October, 2023
  • 2 min reading

On the 29th of September, ETK Nigeria hosted a remarkable evening at the luxurious Wheatbaker in Ikoyi, Lagos, Nigeria. The event, named “ETK ConnectXperience,” served as a platform for us to introduce ETK to potential partners and share our vision for the future with those who have played a pivotal role in our growth and success in Nigeria.

We had the pleasure of hosting Nigerian development agencies, the UK-based ETK Team, along with other team members and stakeholders from the trade and exports, export financing, and exports sectors. This gathering allowed us to showcase ETK’s accomplishments spanning over 13 years, highlighting our expertise in international trade and business development across Africa. It was not just an event; it was an opportunity for networking and collaboration among our esteemed guests.

During the event, our Group Managing Director, Bolaji Sofoluwe, delivered an insightful presentation. She shed light on how ETK has utilised a combination of people, processes, and technology since our inception in 2010. This approach has enabled us to successfully execute projects in 34 African markets and engage in deals worth over $1 billion.

At ETK Nigeria, we offer a range of consulting services tailored to assist African businesses in achieving their growth and expansion goals. From organisational transformation to capacity building, ESG strategy, reporting, auditing, market entry and expansion services, managed business services, and access to capital markets, we provide comprehensive solutions to empower businesses.

In response to questions from our guests, attendees had the opportunity to engage with our Director of Operations, Brent Barnette. He emphasised ETK’s commitment to supporting companies at any stage of their reporting journey. Whether it’s creating an ESG strategy and framework, conducting an ESG audit, developing mitigation strategies, or offering technology and engineering services, we stand ready to assist companies in their ESG journey.

For more than 13 years, ETK has been the preferred consultant for international companies aiming to grow and expand in Africa’s dynamic markets. We have also assisted African companies in their global expansion plans. As we look ahead, we are eager to continue our collaborations with partners in Nigeria and other African nations. Together, we aim to achieve even greater success and contribute to the growth of businesses in Africa and beyond.

  • 2nd October, 2023
  • < 1 min reading
Our Group Managing Director, Bolaji Sofoluwe, recently spoke to Boason Omofaye on ARISE News about how Africa fits into the UK government’s ambitions to increase UK exports to £1 trillion a year by 2030. She also spoke about how African businesses can maximise opportunities to export to the UK.

The UK’s Department for Business and Trade announced earlier this year that it is working with businesses across the country to encourage them to export for the first time or expand their existing international sales to support its mission of reaching £1 trillion in annual exports by the end of the decade.


As a UK Export Champion, ETK Group believes strongly that Africa’s economy can benefit greatly from this trading relationship, and we are committed to supporting businesses in the UK and across Africa to maximise the opportunities that are available.
 
You can watch the full interview here: https://bit.ly/3ZHK9ty

  • 21st September, 2023
  • 2 min reading

As we find ourselves well past the halfway mark to the year 2030, it’s important to note that many African countries are grappling with the challenge of meeting the Sustainable Development Goals (SDGs) set by the United Nations Industrial Development Organization (UNIDO).

According to a recent report by UNIDO, which you can find here https://tinyurl.com/urv2pcye , Africa is trailing behind in terms of progress and performance when it comes to the SDG 9 Index, a critical measure of our progress towards achieving the UN’s 2030 development agenda.

When we compare Africa to the global average, it’s evident that Africa is falling short across crucial indicators, with a few exceptions in Northern African countries like Tunisia, Morocco, and Egypt. The Southern African region, unfortunately, shows the most significant regression across most indicators, as highlighted in the report.

However, amidst the apparent sluggishness in Africa’s progress on the SDG 9 index, there are noteworthy achievements. Africa has outperformed in terms of manufacturing employment and medium-high and High-Technology, MHT industries. In various subregions, Africa has seen an increase in the share of manufacturing in employment compared to previous years. Additionally, the continent has recorded remarkable growth in MHT industries.

It’s essential to acknowledge that Africa, like many other regions, faces a cascade of global and regional crises that pose significant challenges to achieving the 2030 agenda. Despite these challenges, there are still opportunities to accelerate action and bridge the SDG gaps in Africa.

Urgent action is needed from both African nations and their global partners to accelerate reforms and implementation if we are to realise the 2030 development agenda. Africa’s sustainable development priorities must take centre stage.

UN Secretary-General António Guterres emphasised, “Given where we are in meeting the SDGs globally, actions that are optimised to generate multiple benefits and deliver against multiple SDGs will be essential to getting the job done”. He called on world leaders to remain “determined to realise the Sustainable Development Goals and effectively leave no one behind”.

The stagnation of progress in Africa towards the 2030 agenda demands the attention of all stakeholders. Given the prevalence of low-income economies and the insufficient progress made thus far, advancing development in Africa requires focused efforts and targeted strategies. This includes the urgent need for recapitalization and the reallocation of $100 billion in unused special drawing rights, along with reforms in the global financial architecture, as emphasized by Mr. Guterres.

With the 78th United Nations General Assembly in full swing, we have high hopes that the UNGA’s SDG Summit will deliver strategic actions to translate aspirations into tangible progress, not only for Africa but for the entire world.

As an Africa-focused trade and development company, we are committed to collaborating with governments, non-profit organisations, and local communities to implement strategies and projects that can expedite trade and development on the continent.

Photo by bennett tobias and Doug Linstedt on Unsplash