Why African-Nordic partnerships can boost the shift from 'aid to trade'?

Right now, Africa is undergoing a major shift. In the past, the vast majority of foreign money flowing into the continent was development aid. Now, global companies are increasingly seeing Africa as a place for business investment. As African companies help accelerate the shift from aid to trade, they can build international partnerships to grow African market opportunities and offerings. Where can they find these partners? Companies should lift their gaze toward the Arctic and think about partnering with companies in the Nordics.

Home to about 26.5 million people spread across five nations – Denmark, Finland, Iceland, Norway and Sweden – the Nordics have a small but highly educated population and some of the most open economies in the world. In the past few decades, the share of exports in the combined Nordic economy grew from 30% in the 1970s and 1980s to 45% today. With most Nordic economic activity taking place high up the value chain in activities like research and design, Africa can play a role in both producing and consuming Nordic goods. Additionally, services are becoming a bigger part of the Nordics’ global trade, which can be another potent source of partnership. 

There are several industries in which Nordic expertise lines up particularly well with African needs. A few possibilities for innovation exchange are:

MedTech and pharmaceuticals

Medical equipment and pharmaceuticals are the third largest export category in the Nordics. In Denmark, it is the largest. As many African nations have little to no domestic production in these areas, it is a major opportunity for trade. Denmark alone offers over 500,000 healthcare products, with a strong emphasis on design and innovation. Not only could Nordic companies supply standard medical equipment, but there is also the potential for MedTech solutions to entrenched issues like rural healthcare access and infectious diseases.

Education

The Nordics are known for their quality education. Finland, in particular, has an education system that has recently been held up as a model for the rest of the world. In the past few years, Finnish education experts have begun working to export the nation’s model to other countries. This includes planning physical schools and developing digital learning platforms, like the Finnish mathematics game 10monkeys. The Finnish company HundrED is piloting 100 education experiments in schools across Finland, with an eye toward transforming education across the globe.

Technology

Two of the most important tech companies of the last few decades have come out of the Nordics: Sweden’s Ericsson and Finland’s Nokia. Nordic tech offerings spread far beyond these large corporations, however. According to the World Economic Forum, Finland, Sweden, and Denmark are all in the top 10 most innovative countries in the world. Swedish capital Stockholm has the highest number of software companies per capita in Europe, second in the world only to Silicon Valley. Tech behemoths Skype, Spotify, Angry Birds, and Candy Crush all stem from the Nordics. Coming from countries with small domestic populations, Nordic tech companies know they must succeed in global markets in order to scale. African markets could be the next frontier for Nordic tech expansion.

As the rest of the world wakes up to the investment opportunities in Africa, the continent’s business leaders can accelerate the shift from aid to trade by building strategic partnerships and innovation exchange with global companies. With products and expertise that match Africa’s needs, Nordic companies can play a key role in boosting Africa’s growing private sector.

Learn more about business opportunities in Africa at Springboard’s African-Nordic Business Conference 2017 on May 4 in Helsinki.

4 ways Nordic companies can capitalize on Africa’s explosive growth

It’s no secret that Nordic companies need to sell in international markets to achieve rapid growth. With uncertainty in the EU and American markets, where should Nordic companies look for future investment? Over the past five years, almost two-thirds of the world’s economic growth was in emerging markets. China and India are held up as prime examples of this rapid growth, but for years economists have made an art out of predicting who will be next. There is one place Nordic economists and business leaders would be remiss to ignore: Africa. 

Seven of the world’s ten fastest growing economies are in Africa. By 2050, Africa could see a meteoric rise from a $2 trillion economy to $29 trillion one, according to Renaissance Capital’s Global Chief Economist Charles Robertson. Along with that may come a doubling of population, a 13-year increase in life expectancy, and a sevenfold increase in household incomes, not to mention a rapid rise in education levels. With Africa poised for massive growth, now is the time to invest.

Nordic companies are uniquely positioned to capitalise on this growth since they have expertise that is in high demand in African economies. What are some ways Nordic companies can capitalize on Africa’s growth potential?

Export health equipment and MedTech 

Many African countries import all of their medical equipment and most of their pharmaceuticals. The market opportunity is massive – according to Deloitte, healthcare spending in South Africa alone is expected to reach $39 billion by 2018. This presents a lucrative opportunity for healthcare equipment and pharmaceutical companies, but also for MedTech innovation. Mobile health, telemedicine, and early detection devices are particularly needed, and they offer exciting opportunities for Nordic companies. 

Invest in urban infrastructure

Africa’s cities are booming. By 2030, it’s projected that 50% of Africa’s population will live in cities, up from 40% today (and just 28% in 1980). As people flock to cities, someone has to build the infrastructure to accommodate this rapid growth. Billions are being invested right now in building roads and railroads in Africa, and international partners have played a key role in projects like Lagos’ first metro line. Nordic countries have some of the best infrastructure in the world, and Africa’s urban growth provides a promising new market for Nordic infrastructure expertise.

Develop cleantech solutions for pressing challenges

Growing African economies aren’t without challenges, of course. Electricity, waste management, and water purification remain major issues. The Nordics lead the world in ecological sustainability – the top four countries in Yale University’s 2016 Environmental Performance Index rankings are all Nordic – making this a particularly fertile ground for partnership. Tackling these challenges can mean major growth potential for cleantech companies, with the added bonus of helping African cities leapfrog over the 20th-century systems that chained stifling pollution to rapid growth in cities like Beijing and Mumbai. 

Sell consumer goods

In recent years, an increasingly affluent middle class has emerged in many African countries. With the rise in incomes has come an appetite for consumer goods, especially aspirational Western brands. Mobile phones, luxury items, alcohol, and sports equipment are all in particularly high demand. Incomes are projected to continue rising, so the demand for consumer goods is likely to just keep growing. 

The world is changing, and Africa is no longer a place where the only money flowing in is from development aid. Africa’s growing markets are ripe for investment with potential for lucrative returns.

Learn more about business opportunities in Africa at Springboard’s African-Nordic Business Conference 2017 on May 4 in Helsinki. 

What makes African market interesting for SMEs?

The African population is growing more than on any other continent. This fact alone is creating many opportunities, especially in the areas of education, finance and new technology applications. At the same time, there is increased pressure to develop infrastructure for better mobility services to serve the expanding population and the growing need for information exchange between people and businesses.

Nordic technologies and business cultures are highly regarded in Africa, due to Nordic business ethics and the quality of the services and products that Nordic countries can provide.

Developing societies in many African countries have created a growing group of wealthy businesses and individuals. There is money and funding available for companies that want to deal directly with African enterprises. Potential funding instruments are provided by organisations such as TEKES and Finnpartnership in Finland, Sida – the Swedish International Development Cooperation Agency in Sweden and the Nordic Development Fund in all the Nordic countries.

EU funding for SMEs to enter African markets

The EU-funded growth project SME2GO will run until end of 2018, and aims to increase exports of smart city solutions from the Central Baltic region to new markets. During the coming years, SME2GO will focus on increasing cooperation between growth-oriented SMEs and multinational enterprises with solutions for smart cities to create synergies, new cross-border business opportunities, and exports.

The participants in the growth project have access to networking, international marketing and sales training, matchmaking, market intelligence, and customized support. The project provides its services to SMEs free of charge. It is a unique opportunity for innovative and growth-oriented companies to create business in new markets like Africa.

For additional information, go to www.sme2go.eu.

Matti Herlevi
Business Developer and supporter of African development
Posintra Oy and SME2GO-project

Limited pricing offer for AFNB 2017

If you still haven’t booked a seat at this year’s most important forum on doing business in Africa, now’s the time to act. For just a short period, companies that haven’t thought of going to Africa will be able to get tickets at a reduced rate to attend African-Nordic Business Conference 2017 on May 4 at the Hilton Helsinki Strand Hotel.

If you buy on Tuesday February 28, you will pay just 280€. If you miss this window of opportunity, the price will be 350€. Take advantage of this limited time offer now, to reap the following benefits:

• Insights and experiences from business leaders and top investors from both the Nordics and Africa
• Guidelines and tips for accessing financing for your venture
• Case studies from entrepreneurs with successful businesses in Africa
• Advice for understanding and managing the legal and financial framework
• Expert panels to explore market potential in exciting sectors, such as energy, education, technology and infrastructure

Springboard and Ovamba sign funding MoU

Springboard Afro-Nordic Business Platform has signed a Memorandum of Understanding with business financing provider Ovamba and to structure an investment fun for Finnish/Nordic SMEs. 

Once the mechanism is established, it will provide an investment fund to give Nordic firms access to financing for entry into African markets. The fund will pool resources from a variety of investors, with Ovamba acting as the local partner in Africa.

Springboard will act as the facilitator in Finland and will be the contact point for potential applicants from Finland and the Nordics. Stay tuned for further updates on the progress of this exciting partnership!

Ovamba at AFNBC 2017

Funding platform Ovamba provider joins the line-up for African Nordic Business Conference 2017 to provide an overview of financing and funding mechanisms available for entrepreneurs looking to do business in Africa. Ovamba co-founder and global president, Viola Llewellyn will offer insights into how the company assists entrepreneurs by providing access to capital for business establishment and growth.

The Ovamba platform sets itself apart by offering real-time risk measurement and analysis tailored for the African context.  This is further complimented by eCommerce, logistics, trade and import services. Ovamba’s proprietary products and processes are based on deep traditional and cultural knowledge from on-the-ground teams. In 2015 Ovamba won the "Best Fintech in Africa" award in the 'Africa Lending and Financing' category.  The annual award is presented by the financial technology innovation organisation, FinTech Africa.

Ovamba’s founders and management are globally recognized for developing groundbreaking tech innovations that serve African businesses with financial support, and investors with returns that out-perform traditional markets.
You can find more info @ ovamba.com

Springboard at Smart City Export Training in Sweden

As part of its mission to promote Nordic business activity in Africa, Springboard Afro-Nordic Business Platform recently participated in a Smart City Export Training seminar in Västeräs, Sweden. The aim of the event was to coach participants in cooperating with global companies and to share lessons learned from Swedish smart city providers operating in Africa and China.

Springboard co-founder and CEO Kingsley Ify used his address to explain why Nordic start-ups are welcome in Africa. He also referenced several case studies and sectoral assessments to show, how some startup features seen as a disadvantage in the West are an advantage in Africa. 

The event took place from February 22 – 23 and included smart city solution providers and experts from Sweden, Finland, Estonia and Latvia. 

Save the date: African-Nordic Business Conference 2017, 4 May in Helsinki, Finland

Save this date in your calendar now! May 4, 2017 is when entrepreneurs, experts and influencers from the Nordics and Africa will meet at the Hilton Helsinki Strand Hotel to share experiences and insights on how to tap into Africa’s explosive growth. Springboard’s African-Nordic Business Conference 2017 will offer participants a line-up of knowledgeable players from both areas leading an informed and inspiring debate on doing business in Africa.  Play the video invitation from Springboard CEO Kingsley Ify.

22.9.2016 |AFRICA INNOVATES 2017! Pre-event was a great success!

This in-depth morning forum laid the foundation for our flagship African-Nordic Business Conference 2017, which takes place on 4 May, 2017. AFRICA INNOVATES 2017! primer seminar took place on September 22, 2016. Keynote speakers shared inspiring experiences and offered important insights about doing business in Africa. They unanimously declared that with its growing, young, well-educated and upwardly-mobile population, the African continent will spawn a range of new enterprises and generate the kind of strong growth few other parts of the world can rival. They also stressed the importance of building long-lasting and robust partnerships on the ground as the key to developing sustainable business in target countries. “Africa is not one country. Understand the market you are entering,” they chorused.

Partner profile – Rendeavour in Helsinki Conference

Rendeavour, Africa’s largest urban land developer, has joined Springboard as a corporate partner for the African-Nordic Business Conference 2017. Backed by US and other international investors, Rendeavour is playing a significant role in Africa’s urban future. 

The company has over 30,000 acres of visionary projects in the growth trajectories of large cities in Kenya, Ghana, Nigeria, Zambia and Democratic Republic of Congo. Rendeavour’s vision goes beyond alleviating what is a self-evident problem – stifling urban congestion and a dearth of quality housing and commercial property in Africa.  

It is working to create the infrastructure that will help sustain and accelerate Africa’s economic growth, meet the aspirations of Africa’s burgeoning middle classes, and serve as a catalyst for further urban development.

The mixed-use urban developments are live-work-play environments that incorporate residential, retail, light industrial, leisure and commercial plots, with infrastructure and development control.

Attend ANBC 2017 to find out more about Rendeavour and our other partners. Register to take part in this important forum today!

Springboard interviewed at Aamu-TV, Finland – Nordics moving to participate in rapid African economic growth

The Nordics have seen mixed success improving trade with Africa. Countries like Sweden and Denmark have boosted business activity on the continent, while Finland, for example, still has some ground to cover.  Springboard Afro-Nordic Business Platform is a startup working to bridge the gap between the two territories and bring entrepreneurs together.

According to Springboard Co-founder and Operations Manager Suvi Ify, one reason for Finns’ shyness about doing business in Africa is the large distance between the two territories and the related transportation costs. But there is a bit more to it than that, Ify told Finland’s national broadcaster in a television interview.

“We think one important reason is that there is little awareness about Africa in Finland. We want to increase awareness,” Ify told Yle’s breakfast interview programme.

Ify said however that Finland has expertise in many areas on which Finnish and African entrepreneurs could collaborate.

“They include education, IT and cleantech as well as energy and the health sector. It would be worthwhile to take knowhow in these areas to Africa and to tailor them to suit the market,” she added.

African-Nordic Business Conference 2017 will take place on May 4 in Helsinki. It will bring together players from Africa and the Nordics to discuss strategies for building sustainable and innovative business partnerships. Book your seat for this important forum today! 

Watch the interview with English subtitles on Youtube and read more (only in Finnish).

Info nuggets on Africa and the Nordics

 GOOD TO KNOW ABOUT THE NORDICS

27 million - combined population (approx.)

USD 1.2 trillion - combined GDP (PPP, 5 countries & 3 related territories

USD 47,513 – estimated per capita GDP (PPP, 2014)

30 – 35% - proportion of GDP generated by exports

USD 38 billion – combined R&D spending (latest estimates, 2014)

Knowledge–based economies with cutting–edge expertise in high tech clusters

GOOD TO KNOW ABOUT AFRICA

1.2 billion – collective population (approx.)

USD 5 trillion - collective GDP approx. (PPP, 54 countries)

USD 4,870 – estimated per capita GDP (PPP, 2015)

USD 1 trillion - consumer spending by 2020

USD 50 billion - potential total investment by 2020

8 % - annual private equity growth by 2018

Annual economic growth outperforming the ROW

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(Sources: Nordic Institute for Studies in Innovation, Research and Education; Norden; United Nations, African Development Bank, IMF.)

We are featured in CNBC Africa television network

Springboard continues to build bridges between the Nordics and Africa by appearing in a Finland country profile by a business show Access Africa broadcasted on CNBC Africa, a South Africa-based business and current affairs television network. 

A two-person media team comprising executive producer and journalist Yelang Prue Jinka and cameraman Simphiwe Mahlangu spent one week in Finland in July, conducting interviews and producing material for CNBC’s 20 million viewers across sub-Saharan Africa. The interviews focused on government players as well as Finnish businesses and startups.

Apart from Springboard, the television production team met with officials from the Finnish Foreign Ministry as well as South African Ambassador to Finland, Ms. C. J. Smidt. Their tour of Finnish companies included entrepreneurs operating under the umbrella of Innovation House Finland, as well as startups such as career and recruitment platform Fuzu, mobile learning company Funzi and innovation incubator Innokampus.

The completed programme segments will be aired across Africa in August and will introduce Finland, as well as its expertise and innovation to audiences. They will also provide insights into how Finnish business offerings can be deployed in Africa.

Access Africa is an exclusive platform that focuses on providing essential information on the investment climate and opportunities in key economic sectors across Africa. 

Watch Episode 1

Watch Episode 2

Interviewing A Finnish Telecomms Company Making A Difference in Africa: Risto Ojanperä, VP, ElisaValue

“COMPANIES OFTEN THINK ONLY ABOUT TRADE AND WE DO NOT REALLY SEE THE IMPACT OF BUSINESS IN BENEFIT CREATED. ”

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What have your business experiences been so far in Africa, specifically in Zambia?

─ Finnish telecommunications company Elisa has taken only the very first steps toward establishing its business in the African market. What this means in practice, that is what we are still trying to internationalize at Elisa. 
The African market is in itself a very challenging one. So far, we have had good, interesting projects in the Southern part, the latest one in Zambia. This does not, however mean that we have made a wider decision to stay in this market. 
We have been in Zambia for about one year in order to create a digital service channel, which has been offered from a kiosk as citizen services. This project has been piloted and has proven to be very interesting. The pilot period is ending and as a follow up, we will decide what to do and how to go forward. Depending on the mutual benefit point of view, we will only make our final decision about staying in the market, if and when we have something to offer for the market and if and when the market needs our services

In the Nordic and Finnish media there has been more and more discussion about growth in Africa and increasing business opportunities on the continent. Based on your own experiences, are you still positive about the growth in the market?

─ If you look at growth globally or from the African continent point of view, the GDP growth seems strong, but as soon as you face country-specific challenges, you will see the risks that are involved. These vary across Africa. In addition, oil production and resource production affect the development of countries and creates a threshold. And even though you have the will and the goodwill, there are always funding challenges. Often executing a vision depends on the operative and tactical perspective of finding money for projects. We can easily see from our government, that we are in the same situation with many of the African countries. Even though we have goodwill, we ask the same questions: how to fund this and how is the development executed. This is the reality of everyday life.

In which sectors do you see the biggest gaps or demand in the market in relation to Finnish knowhow?

─ If you look at the entire country, then digitalization comes into picture and that is our role in the game. Then green technologies, environmental thinking overall and everything related to developing shire infrastructure. And I do not mean only the development digital infrastructure, but that among others. 
In these countries there are communities that in a short period of time grow into large cities with millions of people around a specific sector. For example, in Zambia people gather around mining areas in the hope of a better future. Urbanization creates demand for Finnish knowhow. What is the demand for water, sanitation, education, healthcare or learning environments? We can link all this to digitalization, where we have chosen the so called domains and e-services. From these we concentrate on citizen services, like in Zambia. We are in Zambia to create citizen services with the support of digitalization. The second focus is learning environments, not teaching teachers as such, but we approach matters from the nucleus of digitalization, meaning what is learning and what is e-learning. We are not really promoting folk knowledge, but how to become an e-citizen.

There has been discussion among Finnish companies targeting Africa and other parts of the world about the lack of sufficient funding mechanisms for SMEs. As a large company, Elisa has had a different level of preparedness to enter the market. What would be your advice to SMEs looking to enter the market with limited resources: what should one know about the market, find out and where to invest?  

─ Before going to the market, the product or service has to be high-quality and to understand the market you should have some kind of channels or relationships. It is a big challenger for an SME to do market-mapping, because it takes the effort of a one or two employees. In addition to this, travelling to Africa is expensive. In spite of all this pre-investment you do not get any income yet. I believe that in collaboration with Finpro, embassies are extremely active in conducting market intelligence. We have also had good cooperation with Finnish Ambassadors in Nigeria, Zambia, Mozambique and South Africa. One should definitely go through Finpro and the embassies to Africa. Market mapping is expensive and there are solutions for this, like crowd funding. So most of all one should have a pre-understanding about the market and how business in done. 

“BECAUSE ONLY THROUGH LONG-TERM IMPACT, CAN WE TAP INTO BIG BUSINESS AND INTERNATIONALIZATION.”

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Many Finnish companies interested in the market have expressed their concern about credible local partners that offer good service. What has been your experience working with local partners? I understand that you mainly work with governmental actors, but certainly also with private sector actors.  

─ In this ecosystem we have a wide range of different types of local partners. To summarise, a local partner creates the framework for activity, but above all it depends people. Once you find a trustworthy human-human relationship, you start to build on that. 
The most important question related to this is the difference between cultures. For example, the people view the concept of time in a way that is completely different from our European and Finnish perspective. On the other hand, logics based on values for example about promise is different. Promise in relation to the execution of something is completely different. Also some people may think that the level of knowhow is somehow lower in Africa, but in practical terms their way of doing things differently works better in their culture than our methods.

In some events there has been discussion about the idea that it would be good for Finnish companies to cluster or cooperate to lower the threshold to enter the market? What is your view on this: benefits and disadvantages? 

─ A large number of business delegations have been organised, including on behalf of the government, to events abroad in the form of trade tourism. People have gone and come back, but with little concrete impact. They have also gathered a group of companies within a specific sector and thought that the sector is somehow a common element bringing the companies together. But what I have understood is that even the impact of those gatherings has been small. 
One very positive personal experience that I have had was a cross-sectoral one. In this project different people from different sectors came together. The catch was that the project involved an African village community. We turned the cup upside down and this multi-sectoral group started to brainstrom about the challenges of community life and we came up with ideas about what kinds of services we Finns have to offer to this village, city or whatever the target group is. We involved health, sanitation, construction, learning, digitalization and culture. It was more of a life-based point of view rather than industry-based. That project also seemed to have boosted other projects and that is good. In terms of the big picture the question is also, what impact companies want to have. Companies often think only about trade and we do not really see the impact of business in benefit created. In addition, one should also think more about long term development in addition to short term trade. Instead of trade tourism one ought to think about how to make short term business and long term impact work hand in hand. Because only through long-term impact can we tap into big business and internationalization. But this is a challenge for both small and large listed companies. 

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Interview with Risto Ojanperä, VP, ElisaValue 

03.12.2015 | Event wrap-up: Springboard Roundtable

Springboard Roundtable Discussion: 'Education Export to Africa' in cooperation with Finland Chamber of Commerce and Finpro.

The roundtable discussion provided a forum for different actors to discuss the current state of Education and Training in Africa. The main goal of this discussion was to bring the market closer to education stakeholders by encouraging and informing them about the market. This was an excellent opportunity to get insights regarding reputation, knowhow, expertise and innovation that lie within this sector in Finland.