African Enterprise Initiative: How Nigeria plans to leverage the AfCFTA

The Nigerian government has recently inaugurated the advisory board of the African Enterprise Initiative, a groundbreaking project aimed at providing the capacity, drive, funding, and platform necessary for Nigerian enterprises to penetrate global markets. Founder and Executive Chairman of the initiative, Niki Okoye, joined CNBC Africa to shed light on this unprecedented endeavor. Okoye highlighted the distinctive features of the African Enterprise Initiative, emphasizing its private sector-led approach. He noted that previous initiatives, such as those spearheaded by NEX and the Nigeria Export Promotion Council, have faced challenges and limitations in equipping Nigerian businesses for global market integration. The new initiative stands out by focusing on addressing these obstacles from a private sector perspective, providing a fresh strategy for enhancing the global competitiveness of Nigerian enterprises. One of the key areas of focus for the initiative is capacity building. Okoye stressed the importance of understanding and navigating the global marketplace, particularly the dynamics of global value chains. By assisting Nigerian businesses in connecting to global supply chains, the initiative aims to stimulate demand for their products and services, drawing parallels to China's successful integration into global manufacturing supply chains in the late 80s and early 90s. Furthermore, Okoye highlighted the service industry as a prime sector for Nigerian competitiveness on the global stage. He emphasized the existing success of Nigerian services in creative fields such as movies and music, underscoring the potential for expanding this global presence. By leveraging the strengths of the service industry and tapping into global demand, the initiative seeks to propel Nigerian enterprises onto the international scene. The African Enterprise Initiative has a multifaceted approach to driving growth and development within Nigerian businesses. One of its flagship interventions is the African Enterprise Fund, a novel initiative aimed at mobilizing local capital to support enterprises at various stages of growth. By engaging local investors and aligning investments with geographical regions, the fund seeks to foster a sense of community support and investment in Nigerian businesses. Additionally, the initiative plans to establish enterprise development clinics in local government areas, creating a network of professionals to nurture a community-based economic ecosystem. This grassroots approach aims to empower local communities to produce goods and services tailored to their needs, fostering micro-enterprises and sustainable economic growth. Another key intervention outlined by Okoye is the expansion of the apprentice system beyond traditional trade-focused apprenticeships. By broadening the scope of apprenticeships to cover diverse industries such as IT, the initiative aims to equip young Nigerians with practical skills and knowledge for various career paths. Furthermore, a global apprentice system will offer opportunities for Nigerian youth to gain exposure to international companies, enhancing their understanding of global business operations. In closing, Okoye emphasized the initiative's ambition to not only benefit Nigeria but also extend its impact to other African countries. By establishing partnerships with global companies and facilitating cross-border apprenticeship programs, the African Enterprise Initiative aims to drive sustainable growth and competitiveness across the African continent.