MEZUO NWUNELI: The quiet giant of agribusiness

Mezuo Nwuneli exudes an unflappable calm whether discussing agriculture,political instability or financial analysis. The Harvard MBAbusiness executive who sits at the helm of affairs of Sahel Capital Partners and Advisory Ltd., one of West Africa’s leading investment establishments, reveals the dynamics of running a multi-million dollar portfolio as well as his transition from being an employee to owning his business. He spoke with Rita Ohai.

Nearly five years ago, Mezuo and his better half lived as expatriates in the coastal city of Dakar,Senegal, and somewhere between sippingToufamand trying to make an impact on the global community, they discovered that the cute slices of onions served on their plates at a traditional Senegalese pouletyassa dinner were imported from Holland.

This apparently was notan anomaly for a francophone country naturally endowed with the ability to grow its own cash crops. In Mezuo’s words, “It was mind-boggling!”

Upon further investigation they realized that in addition to onions,many other major food items were alsoimported, and that the dynamics were not different in the country of their birth – Nigeria.

Soon after that eureka moment, the couple packed their bags, got on the next available home-bound flight and Sahel Capital and an associated company AACE Foods, were born.

But the tale isn’t quite as straight forward as it sounds. Before Mezuo decided to make the leap into the world of business as an entrepreneur, he had a 15-year career working in finance in the U.S., Nigeria and Senegal. This included time in global institutions like JPMorgan, as well as with firms such as SecTrust, Ocean & Oil Holdings and private equity firm AFIG. He also had a near death experience in 2007 when shot by armed robbers in Victoria Island, which resulted in a medical evacuation to the U.S. and subsequently a move to Senegal during which he reflected on the things most important to him.

Once he realized the impact that could be made within the agricultural sector, as well as the potential for significant financial returns, he finally chose to take the plunge. So far, for him it has been well-worth it.

Sahel Capital was incorporated in 2010 and has three keyfocus areas. The first is Principal Investments – it established a spice and seasonings processing company in 2010 (AACE Foods) which sources crop from farmers across Nigeria and processes it for local industrial and retail customers. The second is Consulting/Advisory – it has advised and worked with development agency and private sector clients across West Africa, such as USAID, DFID, the Bill & Melinda Gates Foundation, the Global Alliance for Food Nutrition, Syngenta, and Oxfam among others. And more recently, Fund Management – Sahel was selected to manage a $100 million SME agribusiness fund, the Fund for Agricultural Finance in Nigeria (FAFIN), which was initiated by the Hon. Minister of Agriculture, Dr. Akinwumi Adesina, and sponsored by Federal Ministry of Agriculture and Rural Development, the German development bank (KfW), and the Nigeria Sovereign Investment Authority. “FAFIN fills an important gap in the Nigerian funding landscape and its emergence at this critical time is a tribute to the visionary role that Dr. Adesina and his Agricultural Transformation Agenda are playing in our nation’s history,” he emphasizes.

These areas of interest have helpedthisfocused mantrain his sights on expanding his company’s capacity to have impact within the agricultural sector. With FAFIN he intends to focus on increasing access-to-finance to agricultural-focused companies across Nigeria, enabling them to scale-up substantially in size. In addition, a $2 million Technical Assistance Facility funded by the Federal Ministry of Agriculture and by KfW will enable Sahel to provide grants and technical support to companies in which FAFIN invests.

As for AACE Foods, they are seeking to expand the company’s operations and distribution network. They currently supply chili pepper, ginger, maize, soybeans and other key ingredients to major instant noodle companies and fast food restaurants. Technically, this means that each time you open up the little sachet nestled in a pack of locally manufacturedinstant noodles, the smell of some of his spices are mostly likely to waft up your nostrils.

Most of AACE Foods farmer partnerships are located in the Northern part of the country and the current insecurity periodically has affected the pricing and stability of some of its supplies. In order to mitigate this, AACE Foods is also actively training farmers in southern states like Ogun and Oyo.

With regards to Sahel Capital and FAFIN, Mezuo and his team are frequently on the road visiting with potential investee companies, regardless of where they are located. “With agribusiness the opportunities are out in the field and you have to spend time engaging with the entrepreneurs,” he states.

Mezuo displays a relaxed no-nonsense air of confidence hinged on his disciplined focus on integrity and due process. According to him, “Integrity is central to everything I do and it takes a lifetime to build, but one minute to be destroyed. In our business this is critical when building relationships with both investors and with entrepreneurs.”

On the wall of the reception at his office is a plaque displaying the foundational values on which Sahel Capital is built. They include adjectives like passion, accountability, and stewardship which are all deeply important to him. “These values stem from our passion about agriculture, the belief that each person on our team should be accountable to not only our clients but to each other, and the critical importance of being good stewards of our investors and clients resources,” he states.

While many people who return to the country after living abroad for a long period of time express reservations about staying here permanently, that is not the case with Mezuo who was born at Lagos University Teaching Hospital in Surulereto professors; his father in Mass Communications and mother in English Literature. He grew up on the campus of the University of Lagos, going to school at the university’s International School Lagos and then later to Hillcrest School in Jos.

Most couples who break away from the norm and choose to co-owna business generally have tales of bickering and marital unrest as their lot but it has been a little different with the Nwuneli’s, even though they did have their fair share of arguments at the beginning. When asked how life has been with having his wife as a business partner, he narrated:

“In the early months we definitely had rifts, debates and arguments but what we did was to seek out other couples who have successfully worked together to seek advice.

“Very early on, we met with Folu and Bose Ayeni, a couple we respect immensely, who are founders of Tantalizers, to ask them how they were able to work together for the past 20 years and still stay happily married. They told us that we needed to have very clear scopes of responsibility at work, and to keep our personal and professional lives distinct.

“So we mapped out our roles. At Sahel Capital, I oversee fund management issues related to FAFIN while Ndidi (his wife) overseas our consulting projects. At AACE Foods I provide oversight on supply chain issues, finance and operations while she provides oversight on sales and marketing and HR, with each of us playing to our strengths. We each have the final say in each of the areas we cover,” he stated. A point young couples looking to do business together might want to note.