The Chairman, Honeywell Group, Dr. Oba Otudeko has tasked African governments, companies and entrepreneurs to find innovative solutions that would rapidly move the continent from its pre-colonial business model of trading and exporting raw materials, to manufacturing of value-added goods. Dr. Otudeko made the charge at the London Business School Africa Business Summit held in London over the weekend.

The London Business School Africa Business Summit is a leading forum in Europe for shaping an integrated and innovative perspective on Africa’s future. The Summit was created to further the London Business School’s tradition of substantive thought leadership. The 2017 meeting is the 16th edition of the London Business School Africa Business Summit.

Dr. Otudeko who was a keynote speaker at this year’s summit titled Made in Africa noted that despite the political, infrastructural and other challenges facing the continent, there were enormous opportunities. He called on true entrepreneurs to take advantage of such opportunities and reap buoyant rewards. Dr. Otudeko said there was need for businesses to come up with effective strategies for developing made in Africa solutions that embrace the diversity and peculiarity of the continent.For many decades, Africa has been depending on the exportation of low value commodities and industrial raw materials while importing more expensive finished products.

“The Nigerian experience presents a vivid situation of the status quo with manufacturing in Africa: We export crude oil and use a significant percentage of revenues earned therefrom to import refined petroleum products. Africa cannot continue in this trajectory (low valued added exports). The Continent must rapidly migrate from trading, exporting raw materials to manufacturing value-added goods”, he advised.

According to Otudeko, manufacturing accounts for only 11% of GDP in Sub-Saharan Africa, suggesting that there is a huge untapped opportunity in the sector.He said these opportunities can only be effectively utilized by deliberate, concerted efforts at implementing potent strategies for economic growth and inclusion.Otudeko said there was need for the continent to change its current business model as well as policies and adopt reforms that would engender sustainable economic growth.

“Business leaders must focus on developing talents and coaching people for future leadership roles. When you have the right processes, you still need the right talent to drive these processes towards creating value. We need to particularly invest in equipping the teeming young Africanpopulation with the right skills (especially technical skills) that can make them readily employable”, he said.

Apart from manpower and skills development, Otudeko admonished entrepreneurs to collaborate with governments to push forward business and investment-friendly policies and reforms, as well as adopt global best practices to ensure business sustainability.

He added that reforms such as democracy and stable polity, rule of law, robust judiciary for enforcements of agreements, secure operating environment, good governance, accountability, transparency, continuity and enduring institutions are reforms that will enable the continent to harness the huge opportunities that abound within its shore.

Photo credit: London Business School, Africa Business Summit 2017