Africa rising! The Lessons I have learned from Nigeria.

Africa rising? Where? Or more pertinently, how?

Africa rising - this is the on going narrative you hear whenever people begin to talk about the last frontier - Africa the last frojntier for business. Just recently we were graced by HE  President Muhammud Buhari when he visited Kenya with a delegation businessmen from Nigeria. The aim of that visit  was to foster greater ties between Nigeria and Kenya and to boost business. There is a quality Nigerians have that we should emulate; they possess a natural disposition of assertiveness that ultimately influences they way they do things.

In terms of this narrative of Africa Rising there are a number of issues that come to mind. Africa has a population of 1.1 billion people, that's just as much as India's population. We have 54 countries and we have vast resources; you name it we've got it! The thing about this situation that stares at me blankly,  is the untapped potential. I only hope my perspective will throw this whole debate in stark relief and sharpen your view of Africa.

Intra-Africa trade stands at only 10% the rest are exports mainly to Europe. From where I sit, I find with a huge population like we have, surely our level of trade among ourselves should be higher. Ideally, we should find a way to transform that huge population into consumer demand.

Nigeria is the largest economy in Africa. It has a large population and has been a major exporter of oil. With the drop in global oil prices has no doubt affected Nigeria's economy. The idea of how Africa should shield itself from external economic  shocks becomes the question we should ask. Nigeria has inadvertently found itself suffering from the Dutch Disease (most common with oil exporting economies), where a sharp rise in inflows of foreign currency from one commodity strengthens the local currency leading to less competitive export prices for other products. In other words, oil exports boosted the naira’s value, making imports cheaper and leading to more imports, while diminishing the competitiveness of the local products. That being said, the only way for Nigeria to abate the situation is to diversify their economy.

It is very encouraging to see both our governments exploring how we can enhance trade between both nations. I immediately see some areas of collaboration. Given that both countries have resources in human capital, we should also look into processes that will enable knowledge management and transfers as a service we can offer each other. Secondly, as both countries have a large IT literate population, there are opportunities to develop technology based solutions for business that will improve connectivity between us. Thirdly, Kenya has a developed dairy industry and we could export dairy products to Nigeria. You see Nigeria hasn't focused on the agricultural sector as much as a result of their over-reliance on oil. Therefore they don't trade in traditional cash crops like coffee or tea and so there are potential points of convergence for agriculture. On the other hand we have just discovered oil in Kenya, we could benefit from their knowledge on oil. In short, by building this relationship, Kenya and Nigeria have an opportunity to show how trade relations with African countries is possible for the future of Africa.

Last year we had the World Trade Organization (WTO) conference held in Kenya. This year we expected United Nations Conference on Trade and Development (UNCTAD). The fact that international bodies are taking an interest in Africa is no coincidence. Though Africa is definitely part of a global community and like the world should be thinking about boosting global trade, I think beginning at home is the first place to begin. On the focus of Kenya and Nigeria relations, there are a number of banned products on their import list. A majority of them are agricultural based products. I look forward to seeing intra-African trade being boosted by diminishing protectionist policies. The reason nations pursue protectionism is the need to protect domestic products from foreign competition. Fair enough! However, we live in a global community where a change in one economy can affect another. This is why we have to move from looking at ourselves as distinct parts and begin to look at ourselves as a collective with unique opportunities as African nations.

In summary, the lessons I have learned from Nigeria; diversification is central to sustenance, Africa is yet to unlock it's potential and we are responsible for our destiny.

Darshan Chandaria