Name: Francis Osuyah
Organisation: South African-Nigerian Chamber of Commerce
Position: President
1) Are there opportunities for smaller companies to set-up businesses in Nigeria?
If SME's can come together I think that there are significant opportunities for them to grow their businesses. I would suggest, depending on what sector you are in, if there is a major player within that sector, a group or even a cluster of companies can work together. It is like MTN going into Nigeria – all the SMEs in the telecoms sector in South Africa moved into Nigeria with MTN. Because they provided certain services to MTN in South Africa, it was much easier for them to replicate those services in Nigeria. If I was an SME in South Africa I would mirror the direction of the major corporates because that serves as a platform to identify the opportunities.
2) In your opinion, what is the most common mistake foreign companies make when setting up a business in Nigeria?
I think the most important thing is trust – you can only build relationships based on trust. If foreigners come into Nigeria not trusting anybody it will always be a problem because people don't feel comfortable with you. Nigerians will probably come out to you in a very open manner and if you don't reciprocate that, it becomes a problem. A second mistake is that companies don’t spend enough money on market research. Some investors just get on a plane and say, "I'm going to Nigeria because everyone else is going and making lots of money". It doesn't work like that, it involves a lot of hard work and building partnerships with the right people.
3) Nigeria has a reputation as an expensive country in which to do business. Do you agree?
It depends on how you define expensive. If you define it in relation to the returns you have on your investment it is not expensive. In general terms however the cost of doing business is high. It is directly linked to the level of infrastructure development in the country.
4) Many Nigerian politicians are speaking of reforms – have you started to notice a difference on the ground?
You have to look at it from different levels. At the federal level (which is the national government) we have had quite a number of reforms in the financial sector with the consolidation of the banks. Previously the top banks in Africa were all South African but now Nigerian banks are making their presence known. There have been quite a lot of other reforms – some have been successful and some haven't. Privatisation has not gone as well as one would have expected but it is an ongoing process. On a state level, some states are doing well and working very hard. A lot of states are talking about changes and infrastructure development projects are going up. There are however still some challenges with many of the oil-producing states.
5) On a more personal note, you are Nigerian yourself – what do you miss most about home?
The people – our people are just great! I can drive to a friend's place and if I want to visit him, that is not a problem. In South Africa I have to call first and say "can I see you at this time?" The level of interaction is much higher in Nigeria.
