“I want to assure all potential investors that our government is slowly but surely tackling these challenges in order to create a friendly environment for those seeking to expand their business into Nigeria,” Charles Cocodia, of the Nigeria High Commission to SA, said yesterday, Thursday, 17 September 2009, in Johannesburg.
“We have a legislation that protects legitimate investments and we are making considerable efforts to alleviate ignoble malaises such as the 419 scam which give our country a bad reputation,” Cocodia added.
Cocodia was speaking at the Intra-Africa Business Breakfast held at the Grayston Southern Sun Hotel, and hosted by Upbeat Marketing in partnership with Bizcommunity.com, SAfm and Blue Financial Services.
With its 130 million people, Nigeria - Africa's top oil producer and most populous nation - has become an after-sought destination for European and SA investors keen to unveil the mystery of this ‘celebrity country' well known for its passion of football and music, witchcraft-infested movies and perhaps unluckily diabolised as a ‘Africa's haven of drugs and fraud'.
But many observers believe that behind that veil of mystery lies a country abound with endless investment opportunities, including vast areas of arable land suitable for agricultural projects - one of the government's objectives to enhance food security and improve standards of life of ordinary people.
Diana Games, owner of Africa at Work and CEO of SA-Nigeria Chamber of Commerce, told delegates that SA investments in Nigeria have grown in leaps and bounds mostly through joint-ventures.
“Despite some complications and problems, I must admit that a lot of reforms have been made there. As a chamber, we offer a lot of assistance to those who are willing to expand their business into Nigeria,” Games said.
It is believed that the number of SA companies doing business in Nigeria now stands at over 100 from a mere four in 1999.
Morne Reinders, group corporate affairs executive at Blue Financial Services, said: “Nigeria is a country of endless opportunities if risks are mitigated. Research the market meticulously - endeavor to become a Nigerian company and not a version of the traditional business in another country.
“Provide innovative products and services and be cultural sensitive because cultures and traditions differ across the country - what may work in Lagos, might not work in Oyo State for example.
“Explore alternative marketing avenues - mobile phones offer an attractive, cost effective way to advertise and communicate. Be aware of the importance of a local partner as it might facilitate you in areas such as ICT infrastructure, procurement service, regulatory compliance and introduction to reliable service suppliers.”
Blue Financial Services, which says it is striving to be a pan-African financial services group, has operations in 14 African countries and a holding company in Mauritius, and is targeting Angola, Mozambique, Ghana and Egypt for expansion.
Blue's Nigeria operations started in 2008.
Nothukela Thuksi Sereo, business development manager at ICT Works, told Bizcommunity.com: “What I like about these sessions is that they provide a balanced view of the situation on the ground by inviting authorities of those countries and also representatives of SA companies operating there.
“So it kind of helps a lot in terms of knowing what is going on there.”
Sereo said that her company is looking to invest in Kenya, Malawi and possibly in Nigeria.
