May 19, 2020

African entrepreneurs in the spotlight

African Business Review
Africa Awards for Entrepreneurship
African entrepreneurs
Chocolate City Group
Bizclik Editor
4 min
African entrepreneurs in the spotlight

This year’s Africa Awards for Entrepreneurship saw a record 3,300 companies from 48 African nations submit entries to compete for the Grand Prize of US$100,000.

The awards, founded by private investment group Legatum, were designed to promote the value of entrepreneurship in Africa, encourage small business owners and aspiring entrepreneurs and attract more venture capital inflows towards good businesses across Africa.

The winner of the big prize was SECURICO, Zimbabwe’s service-focused security company. Director and Founder Divine Ndhlukula said: “I hope that my story of creating SECURICO, and those of my fellow finalists will help to inspire other African entrepreneurs to seek opportunity, embrace risk, and above all, believe in themselves.”

 

THE SECURICO STORY

So what is Ndhlukula’s story? By all accounts, it’s quite a remarkable one.

The idea of SECURICO was created in her home in the country’s capital, Harare. The company first started working out of Ndhlukula’s cottage with just four employees. Her determination was tested when her supportive husband passed away, but nevertheless she continued to pursue her dream using savings.

At that time, security giants such as Midsec and Fawcett dominated the industry – which may not have been quite ready for a female-led company. “The market was not convinced on my capacity to deliver in a hitherto male dominated industry,” said Ndhlukula. “The way to manage that was being the best…and the market was sure going to recognise a good thing coming out of our company. I had to work five times harder than the average man in my industry to get noticed. That won the day.”

Ndhlukula was clear in the principles she wanted to enforce from day one. The highest quality service and a shorter turnaround time than SECURICO’s competitors were two such values.

SECURICO provides guarding services and electronic security solutions and became the first security company to be ISO (International Organisation for Standardisation) certified and now employs more than 3,400 staff – 900 of which are women.

“I started the business to create financial security for my family and myself and also to be in a position where I would make a huge impact on other people in particular, women,” said Ndhlukula, making sure that employees are provided with medical aid, help with education, housing and life insurance.

 

VISION

SECURICO has been rewarded with a number of achievements outlining its success. It won the inaugural National Quality Awards (NAQA) Company of the Year Award (Large Enterprises) hosted by the Standards Association of Zimbabwe and was also voted Zimbabwe's 7th Best Employer for 2010 in a national survey conducted by Industrial Psychology Consultants.

Ndhlukula said she was not willing to compromise employee welfare for profit. "While competing on price is healthy there should be a balance between the business' concern for growth and the welfare of employees," she explained on her website.

"The tendency to charge unrealistic prices compromises employees' welfare and in the end the quality of the service provided by these companies is seriously compromised. They inevitably end up losing business rather than growing their businesses.

 “Our vision as SECURICO is we become a leading security organisation in the Southern African Development Community region and continue to grow at the targeted rates and make our company a truly international business.”

 

FINALISTS

There were five other finalists, including Chocolate City Group. Based in Nigeria, the entertainment group of companies, consisting of Chocolate City Music, Chocolate City Media and Chocolate City Distribution, is home to some of Africa’s biggest hip-hop stars such as M.I and Jesse Jagz.

Ethiopia’s soleRebels also made it into the final six companies. Founded by locals to create jobs for the poor community in Addis Ababa, the shoe company has become a global success. Using recycled material and Ethiopian artisan crafts, the footwear company has gone from strength to strength and is the only World Fair Trade Organisation certified footwear company.

Other finalists included Expand Technologies, based in Mauritius, Unique Solutions of the Gambia and Pepperoni Foods of Nigeria.

Josephine A. Okot, founder of Ugandan agricultural company Victoria Seeds, won Coca-Cola’s Most Outstanding Woman Entrepreneur, taking home a prize of $100,000.

 

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Jun 27, 2021

Billionaire Kumar Birla Champions Regional Supply Chains

AdityaBirlaGroup
Alibaba
globalisation
Regionalisation
Elise Leise
3 min
As multinationals try to recover from the pandemic, Kumar Birla has a solution—narrow your scope and invest in reliable, regional suppliers

As the head of the Aditya Birla Group, a US$46bn firm that operates in 36 countries, Kumar Mangalam Birla is no stranger to splashy strategic moves. Yet his recent announcement that he no longer wants to acquire globally distributed supply chains stood out. While many companies have struggled to cope with shipping backlogs, his firm has chosen to pivot and focus on regional networks. Said Birla: ‘We wouldn’t look at a company or a business where you source in one corner of the world and sell in another’. 

 

He cited protectionism, the pandemic, and the limited movement of products and people around the world as ABG’s primary causes of lost profits. And they aren’t alone. Over the past year, 900 of the U.S. and Europe’s biggest IT, defence, and financial services firms have lost an average of US$184mn apiece

An Era of Global Disruption

Over the past few decades, low shipping rates and rapid delivery times have lulled multinational firms into a false sense of security. In the early 2000s, companies chose to take on significant global supply chain risks in exchange for increased profits. First, it made sense to manufacture higher-value goods, such as electronics, in low-cost regions throughout Southeast Asia, India, and Africa. Second, first-tier suppliers started to outsource the manufacturing of specific components to second-, third-, and even fourth-tiers—leaving supply chains with extremely limited visibility. 

 

So when COVID-19 disruptions struck certain regions, companies were caught unprepared. Usually, these events come few and far between. But over the past ten years, we’ve seen a number of ‘black swan’ events that have thrown the supply chain industry into chaos. Here’s a quick history of the most significant events in recent years, thanks to the MIT Sloan Management Review

 

  • 2010. China creates export quotas for rare earth elements. 
  • 2011. The Tōhoku Earthquake hits East Japan; flooding sweeps throughout Thailand. 
  • 2016-present. Trade wars between the U.S. and China hurt suppliers. 
  • 2020-present. COVID-19 pandemic shuts down international shipping ports.

 

Now, Kumar Birla is one of many who want to re-evaluate how we run our supply chains. Though his company has acquired 40+ companies in the last quarter decade, Birla intends to build up local hubs rather than expand operations. 

 

Why Pursue Regionalisation? 

Combine Chinese economic dominance, global supply chain vulnerabilities, and major government policy shifts around the world, and you have a storm brewing on the horizon for big multinational firms. As Brookings noted, ‘the biggest risk for trading opportunities in the developing world is growing protectionism in more advanced economies, often dressed up as national security protection’. 

 

Altogether, from the U.S. to the European Union, governments are trying to protect their domestic supply chains, secure adequate stockpiles of materials, and build world-class local networks. Consider Biden’s recent executive order, which seeks to bring semiconductor manufacturing back to home soil, or Japan’s bid to open more memory chip fabrication factories near Tokyo. The Aditya Birla Group intends to react in kind. Said Birla: ‘We’re looking at regionalism as a very big theme’. 

Will Others Follow Suit? 

In the post-pandemic economy, global businesses must decide whether to expand or contract. On one hand, the Alibaba Group’s Cainiao Smart Logistics Network recently launched a direct flight between Hong Kong, China, and Lagos, Nigeria. On the other, the Japanese government is desperate to make its chip manufacturing domestic. Indeed, as two supply chain strategies diverge in a post-pandemic world, the one businesses take may make all the difference. 

 

Yet Birla is confident that regionalisation is the right call. According to his words at the Qatar Economic Forum, even necessary cross-border transactions should be smaller in scope. And as the Bloomberg Billionaires Index now lists his net wealth at US$10.4bn, up 52% from 2020, he may have the cash to test his theories out. ‘Regional hubs, regional presence, regional employment, catering to regional demand’, he stated. ‘We’re a global company rooted in local economics’. 

 

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