Saturday, May 5, 2012

Day 3 – “Where’s the power?”


Leslie: The CEO of GT Bank, Segun Agbaje, was a forceful presence from the moment he entered the meeting room.  Talking enthusiastically about how he expected to build the bank by expanding into East Africa, building the retail bank’s business among richer Nigerians, and taking on new sectors of the economy with commercial banking services, he seemed undaunted by the potential challenges of competition from other banks and new financial services providers like Pagatech.

His aggressive, optimistic attitude was echoed by leaders at MTN Nigeria, the leading telecom provider, who told stories about overcoming an overwhelmed power infrastructure and naysayers who doubted the ability of Nigerians to pay for telecom services (naysayers were wrong; the hidden, unmeasured “black market” economy is so large that spending power can be 4x what is reported) to create a vast market with home-generated power.

Having heard from two leaders who seemed to find the government more obstacle than help, it was interesting to hear the other side of that story. In a meeting with a representative from the Lagos State government, we learned that the state is at least aware of all of the challenges facing it: he talked about projects in infrastructure, education and power, and about the goal of making Lagos the industrial leader of Africa. Although he couldn’t directly address the power challenges (that’s a matter for national government), the Lagos State Governor did suggest that tackling corruption should wait, in his view, until infrastructure is in place to allow the economy to grow.

It’s worth noting that during all of these visits (from African Capital Alliance onward – the Ibese cement plant excluded), the meeting entourages were an almost even mix of men and women. It was exciting to see that women may not be starting from an uneven footing among the businesspeople of West Africa. I haven’t seen such balance in American boardrooms.

The highlight of the day for me was our visit to Pagatech. Tying together our visit to a telecom company and a bank was a visit to a company that worked with both to create something new and better – lower-priced money transfers for people not reached by the big banks. Mr. Oviosu’s army of agents allow people to conduct transfers and conduct outreach to new customers, bringing features phones and smartphones alike into mobile money transfer. The next step is taking on traditional banking more directly, with savings, checking, and credit accounts. GMIX, anyone?

Dinner at Bogobiri included Michael drinking a “Climax,” a capella performances by Merp, Onu, and Leslie, and a little souvenir shopping. At the club, we enjoyed “Wild Sex,” American music, stripper poles, and the company of some interesting new Nigerian friends ;).

Andrew: Perhaps Leslie is being modest, but to me the highlight of the evening was the singing at Bogobiri.  After the live band finished its (in my opinion, annoyingly) loud performance, we took entertainment into our own hands.  Specifically, Erin came up to the mic and announced that Merp would be singing a song.  Merp sang Adele, Onu sang Boyz to Men, and Leslie sang The Little Mermaid’s “Part of your world” (which incidentally Peter knew all the lyrics for).





Big thanks to Michael for organizing the “Nigeria after dark” trip.  I think we also can’t forget Professor Berk joining us at the club.  The next day, I heard Danny questioning him “Professor Berk, I heard you got down.  The question is – was the hat on or off?”

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