Economic strain forces manufacturers to think global
Nigeria’s tough business climate is pushing manufacturers into international partnerships and expansion, global best practices and diversification away from mono product.
Manufacturers are also increasingly becoming interested in exportation to gain substantial market share, raise margins and avoid losses that may lead to staff cuts.
Fidson Healthcare plc, a drug maker, recently sealed a partnership with Immune Therapeutics, GB Pharma and American Hospitals & Resort (AHAR), three United States firms, for the marketing and distribution of LodonalTM, a patent-protected product meant for the management of patients with immune-compromising diseases.
“The international experience of Immune Therapeutics and GB Pharma/AHAR in different markets, and their strong commitment to research will be of immense benefit to Fidson. Likewise, Fidson’s towering presence in the Nigeria pharma space will open a great door for the group to access one of the biggest and most rewarding markets in Africa,” Fidelis Ayebae, managing director, Fidson Healthcare plc, said.
Posh International, producer of hair dryers and trolleys, has moved into the West African market, competing favourably with Asian counterparts.
“Our local products have competed favourably with those of Asians and Europeans. In Cameroon, we are champions. China has no footing there. Our designs, which are products of research and development, have not been matched by our competitors,’’ said Dom Opara, general manager, Posh International, in a recent interview with Real Sector Watch.
Currently, several manufacturers have already keyed into the barcode system of firms like GS 1 Nigeria in order to easily track and trace their products anywhere in the world, according to Tunde Odunlami, CEO, GS1 Nigeria.
Barcodes guarantee international identification, efficiency and visibility of demand and supply chains, while allowing companies worldwide to uniquely identify their customers, products, services, assets, logistic units, shipments, among other things.
One company that has benefitted from barcodes is Unilever Nigeria plc.
Josephine Ataboh, research and development (R&D) manager, personal care (West Africa), Unilever Nigeria plc, said her firm owns the single largest barcode number bank with GS1 Nigeria. According to Ataboh, barcodes have enabled Unilever to transact its businesses seamlessly across geographies and have helped the firm optimise multinational operations, while providing safe and sustainable products to consumers.
“We often have to trace where raw materials come from, track where products are going, and ensure compliance with legislation and regulatory requirements,” she said last September, at the GS1 Nigeria Retailers Forum in Lagos.
Dangote Group is transforming into one of the largest conglomerates in the world, having expanded its cement segment to Zambia, Ethiopia and Cameroon. Dangote’s case was not basically triggered by Nigeria’s economic strain but by the need for business expansion to tap into opportunities in Africa.
Dangote Cement commissioned 1.5 million metric tonnes cement plant in Cameroon last Wednesday.
The investment, estimated at $250 million, is located at riverine area of Douala of Cameroon.
According to Aliko Dangote, president, Dangote Group, the plant is the company’s largest greenfield project in a neighboring country
“This massive economic revolution that is particularly evident in the power sector, infrastructural development, industrial development, and the transportation industry, has impacted positively on businesses. We can attest to this as we have been one of the major beneficiaries, Dangote stated.
Real Sector Watch gathered that many manufacturers are increasingly innovating ways of making their products gain international acceptability through better packaging, enhanced quality and international standardisation.
ODINAKA ANUDU