Onome Amuge
Retail industry experts, gathered at the just concluded 2024 Africa Retail Congress,have called for businesses and professionals to be resilient and make the most of the opportunities in the African market despite the challenges presented by regulatory complexities and economic fluctuations.
The experts highlighted the potential for success in the African market for businesses that are able to adapt and innovate, as the continent holds a wealth of possibilities for those who are willing to embrace the challenges.
The key message of resilience and adaptability in the African market resonated with industry stakeholders at the event, themed “Retail Beyond Borders”.
Chizoma Okoli, deputy managing director of Access Bank, shared her expertise on “Financing Retail Expansion Across Borders.”
In her keynote speech, Okoli discussed the importance of crafting a strategic corporate vision and understanding customer behaviour when expanding business operations across borders.
Citing a case of Access Bank, she stated, “We follow the money. We are looking at the areas and the countries where our customers are transacting. You will be aware that we have just received our Hong Kong license. A lot of people say, why Hong Kong? But I am sure that if you are very conversant with trade activities, you would know that it is one of the places where we have to be.”
Okoli highlighted the potential of the African continent, citing its youth population, rapid urbanisation, and the increasing adoption of technology in retail as key drivers of growth.
However, Okoli was also quick to emphasize that businesses must contend with infrastructure deficiencies, supply chain disruptions, currency volatility, and political instability, which act as significant impediments to expansion across borders.
The Access Bank deputy managing director advised businesses to explore various financing options for retail expansion, including traditional bank loans, supplier credits, crowd-sourced funding, and private equity investments.
She asserted that businesses must evaluate the suitability of each financing option based on their specific needs, taking into consideration factors such as their governance structures, financial health, and market opportunities in potential expansion markets.
Folashade Ambrose-Medebem, the Lagos State commissioner for trade and investment, remarked on the Lagos State Government’s commitment to fostering retail sector growth.
Ambrose-Medebem outlined the various initiatives undertaken by the government, including strategic policy frameworks, public-private partnerships, and infrastructure development, all geared towards creating a conducive environment for retail businesses to thrive.
The commissioner emphasised the importance of implementing inclusive, accessible, and sustainable retail policies that cater to both large and small businesses, with a particular focus on empowering Micro, Small and Medium Enterprises (MSMEs).
She highlighted the Lagos State Government’s efforts to foster retail growth through simplification of business processes, provision of low-interest loans, promotion of digital retail, and improving key infrastructure such as transport and internet connectivity.
Ambrose-Medebem accentuated the significance of public-private collaboration in achieving the government’s objectives of positioning Lagos as a leading retail hub.
She underscored the importance of the government’s initiatives to support the private sector and promote the retail industry’s integration into the global market through various programmes, partnerships, and digital solutions.
Gaurav Dwivedi, CEO of Multipro Consumer Products Limited, in his headliner presentation titled “Leadership in Diverse Markets, emphasised the importance of businesses gaining an in-depth understanding of the diversity within the Nigerian and African consumer base, taking into account local preferences, behaviours, and socioeconomic factors when planning and implementing a cross-border retail presence.
He emphasised the need for businesses to accurately target and engage diverse consumer demographics, from young children to older generations. He also noted the importance of adapting pack sizes and product offerings to accommodate different socioeconomic classes.
Dwivedi stressed the importance of a customized, locally grounded approach to distribution, product differentiation, and credit structures that take into account cultural and religious values. He urged businesses to exercise patience and invest in long-term brand-building efforts, highlighting the significant potential for growth in the African market.
The Multipro Consumer Products chief also spoke on the critical role of technology in optimising Fast-Moving Consumer Goods (FMCG) distribution, noting the robust nature of Africa’s consumer market and the essential role of young, educated talent in driving the continent’s economic future.
Chris Ogbechie, the dean of Lagos Business School, articulated the school’s dedication to elevating the standards of retail practice during his opening remarks at the event.
He also stressed the importance of collaboration among stakeholders, constructive competition, and collective leverage of resources to redefine Africa’s retail landscape and unlock new avenues of prosperity across the continent.
Louis Nzegwu, the Congress Chair collaborating with the dean, underscored the importance of resilience and adaptability in the African retail landscape.
Nzegwu urged retail businesses and professionals to not be deterred by the regulatory complexities and economic fluctuations that characterise African markets, as these challenges also present significant opportunities for those who persist and innovate.
