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Entrepreneurs

When Life Gives You Lemons, Make Millions

Unfulfilled and selling pharmaceuticals; Seun Abolaji decided to refresh his life with lemonade.

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Healthy drinks have become a booming business in Nigeria. Even Coca-Cola is getting in on the action; the fizzy-drink giant acquired a 40% stake in Chi, Nigeria’s largest juice and dairy company with an estimated valuation of around $1 billion, in February. In the wake of this deal, Nigerian entrepreneur, Seun Abolaji, is determined to turn his lemons into lemonade and liquid cash.

“We feel like the Nigerian drinks market is worth millions if not billions. Look at what Coke did with Chi. It’s a massive industry and a lot of people are looking to invest in this market,” says Abolaji.

Abolaji and his brother started Wilson’s Juice Company about three years ago with $10. Today, the company has a multi-million-naira turnover and is stocked in all the major retail outlets, with a presence in over 13 states in Nigeria. The company also has its own factory with a growing workforce of about 30 people. Their success is a result of Abolaji’s ability to spot a gap in the market, a trait that earned him the nickname Candy Man when he was at school.

“I was buying candy and reselling it to the kids in school. They used to call me the Candy Man because my locker would be full of candies and I had clients who would buy everything. I would buy the candies for like $1 and they would buy it from me for like $20. I don’t know why they would not just go down to the store, but I guess I provided them with access,” says Abolaji.

Born in Nigeria, Abolaji migrated to the United States, at the age of eight, where he obtained a degree in psychology from the University of Colorado. After dreaming of becoming a record producer, Abolaji succumbed to a career in pharmaceuticals to please his parents.

“After I finished undergrad, I used to produce music too. I wanted to be a producer, I told my parents ‘look I want to go to New York, I have been doing this for a long time and I want to go study under someone’. My parents did not agree. They locked me in my basement and they said ‘you need to figure out what you want to do with your life,’” he says.

“I made a list of about five things. There was music producer, doctor, pharmacist, entrepreneur and some other things. So, I asked myself, how can I make this amount of money within this period of time and what will get me there fastest and pharmacy was the one that was at the top of the list because you could make six figures.”

Abolaji worked with CVS Pharmacy in Manhattan for five years. In 2007, he decided to visit Nigeria and did a pharmacy internship with Alpha Pharmacy in Ikeja, a suburb on the mainland of Lagos. That experience taught Abolaji two things. Firstly, he did not want to be a pharmacist; secondly, he could actually live in Nigeria.

It was then that Abolaji decided it was time for a career change.

“So, we went to a farmland my family owned in Osa. My parents had a project they were working on and they had spent so much money on it but we realized that the people stole the money and nothing was done. So my brother came down to Nigeria and saw the situation and decided to fix it. The land was supposed to be a factory for producing ekuru, a local produce made from palm kernel cake,” says Abolaji.

After trying to revive the business for two years, the brothers ran out of money and had to shut down the factory.

“We were selling everything on credit and buying everything on cash and that could not be sustained. We ran out of money because people promised to pay at different times and they didn’t pay.”

Not deterred, Abolaji saw an opportunity for their next business venture.

“We thought to ourselves ‘we are both athletes, there are no fresh juices available, so let’s start making fresh juice to sell’. So we bought a bag of oranges and a plastic juicer and started making juices at Covenant University. We rented a kiosk and then we had a natural progression into smoothies and then one day we saw lemons, and we were like let’s add lemonade,” says Abolaji.

Before long, all their clients only wanted lemonade and they decided to focus on this product. As business took off, they employed more people and Abolaji realized they needed a system to track sales.

“One day, I said to my brother, ‘why don’t we put this in a bottle?’. We had about 11 people working for us and you never knew how much sales you were making because they were squeezing the lemons into cups, adding sugar and selling for cash. It was difficult to track how many cash sales you were making in a day. So I said to myself ‘if we put it in bottles, I don’t have to be here to oversee everything. I give you 10 bottles, I know exactly how much money I should get back,’” says Abolaji.

The bottled lemonade was a hit with their customers and Abolaji realized it was time to take the business to the next level.

“We decided to go to a bottling company and we got a generic bottle. We began thinking that this could be something, and that is when we got the square bottle and began branding it,” says Abolaji.

The next step was to give the drink a name.

“One of my brother’s friends is called Wilson. When were doing it in cups, they came all the way from New Zealand, sleeping on concrete floors, just to see what was going on and that was key for us. Also, my last name is Abolaji and we didn’t think anybody would want to drink Abolaji Lemonade. So we played with different names which a Nigerian, and anyone in the world, can say and we just landed on Wilson.”

The duo soon got their certification to sell drinks in Nigeria and began knocking on the doors of supermarkets. In the past three years, the company has grown organically. Abolaji is now raising funds to build a larger factory. The long-term plan is to be the go-to natural beverage company in Nigeria and expand to other African countries. The company also recently added a second product, called Pink Lemonade, made from hibiscus.

The goal is to expand to the open market, which accounts for about 90% of retail in Nigeria, according to Abolaji. To do that, they need to compete with the locally manufactured drinks, which are a lot cheaper than Wilson’s. However, Abolaji is undeterred; if the sale of Chi is anything to go by, he knows he is exactly where he needs to be, making lemonade out of life’s lemons.

Entrepreneurs

Enterprise And Traceable Tea From Tanzania

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Tahira Nizari; images supplied

How this Tanzanian entrepreneur’s tea startup is weathering the Covid-19 storm.

When Tahira Nizari started her social enterprise Kazi Yetu in Tanzania’s bustling city, Dar es Salaam, with her business partner and husband, Hendrik Buermann, almost two years ago, she didn’t anticipate the sheer scope of her big idea.

But she also didn’t expect that, because of an employee’s exposure to the coronavirus in April, she and her entire team would be quarantining for two weeks, stalling work in a year that she had projected growth for her company. With the pandemic’s onset, she lost most of her customer base in Tanzania, albeit temporarily, and was forced to come up with a game-plan and quickly pivot.

“It’s been an economic recession overnight, more or less,” says Nizari.

With family roots in Tanzania, and armed with formal degrees from Dubai and Canada, and experience in economic inclusion in the non-profit development sector, Nizari aimed to set a benchmark in the agribusiness sector in Tanzania through value-addition and by employing local women in her factory based in Dar es Salaam to produce “a traceable product” for the local and international market.

“Right now, tea is just exported in bulk completely (from Tanzania) and then all the jobs thereafter in that value chain are done abroad. So what we said was ‘let’s redistribute that job creation, let’s bring it back to Tanzania and let’s create a facility in which we can hire workers all locally and have a product that is 100% made in Tanzania’,” says Nizari. After extensive research in multiple target markets, both locally and abroad, building relationships with 250 Tanzanian farmers, setting up a factory exclusively employing local and previously-unemployed women, and many iterations of the seven blends of its flagship Tanzania Tea Collection using local flavors and spices, Kazi Yetu was ready to expand its scope in 2020.

“We were following our business plan… but we were really cautious and risk-averse (in 2018 and 2019). And then, we said, ‘you know what, when 2020 hits, it’s going to be growth’.”

Nizari was planning on reaching up to 4,000 farmers, buy machinery from China, grow the local B2B customer base, permanently employ all the women at the factory and begin to export on a larger scale after the launch of Kazi Yetu’s online store.

But when the coronavirus hit the local and international markets, things started looking very bleak, especially since Kazi Yetu is currently fully self-funded.

 Not only did it lose almost all of its monthly income, but the farmers stopped meeting in groups for the training, so the supply chain was disrupted.

“In Europe, people are all sitting at home. They’re looking for products to build their immunity – tea is a great solution.”

The factory also had to introduce safety protocols for employees at work and at home, as well as reduce the number of people working at any given time in order to adhere to social distancing.

An employee’s father also died of the coronavirus, which forced Nizari to ask everyone involved with Kazi Yetu to quarantine at home for 14 days.

“So what we said was, ‘look, we don’t want to risk their safety, but we also don’t want to risk their economic well-being’. So we just paid all of them their full-time salary,” says Nizari.

“Generally, our operational costs have been really hard to cover right now… but it’s okay, because it made us pivot.”

It inspired Nizari to expedite Kazi Yetu’s plans to export, kickstart the online store sooner than anticipated and build up stock to send to Germany, rather than just focus on the Tanzanian market, which is temporarily quite small. Exporting has been an issue, given limited shipping at the moment, but the European market proved to be a pleasant surprise for Nizari.

“In Europe, people are all sitting at home. They’re looking for products to build their immunity – tea is a great solution,” she says.

Slowly, the factory is moving back to normal operations and Nizari is trying her best to ensure a steady income for the employees. Kazi Yetu is also now available on local delivery applications in Tanzania, so people can order tea to their doorsteps.

Looking ahead, Nizari hopes to scale up exporting through the online store and retailers, whether in Europe, or also in markets like South Africa where products from sub-Saharan Africa are popular, and North America where innovative African products are in demand.

“We want our product to be competing with products made in Europe, and for example, Sri Lankan tea, Indian tea and Chinese tea. We want Tanzanian products to be well-regarded,” she adds.

Since the teas are traceable, which is a unique selling point, Kazi Yetu is also working on an app that uses blockchain to allow customers to access data on the tea they purchase, from the farm level, all the way to their cups. This way, they will know first-hand the impact the product has.

In addition, Nizari is working on a farm-hub model to build Kazi Yetu’s supply chain by helping them produce better raw products through a no-interest investment that can be paid back with their final product over time.

“The whole ‘economy versus safety’ debate… it’s something we have to think about moving forward… You can’t just operate as a business that makes money, you have to think about… the well-being of your workplace, the well-being of everyone in your supply chain… And I think this is where social enterprises really come in,” Nizari adds.

And a hot cup of locally-produced tea can certainly help take forward any such deliberations.

By Inaara Gangji

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Entrepreneurs

Farmer Forays: ‘Creating A New Line Of Business’

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Shola Ladoja; image supplied

Nigerian agripreneur Shola Ladoja, the founder of Simply Green, says the pandemic-induced lockdown brought with it logistic adversity, but also more local sales.  

With the marauding coronavirus disrupting lives and businesses in Nigeria, the financial stability of a majority of the country’s 200 million inhabitants has been severely affected.

The significant toll it has taken on economic activities has forced many small and medium enterprises to reimagine new ways of staying afloat. Covid-19 is also set to radically aggravate food insecurity in Africa. In spite of Nigeria’s dependence on oil, agriculture remains an important cornerstone for its economy, providing employment for millions especially in the informal sector.

The threat of starvation is so present that in a public address in May, Nigeria’s President Muhammadu Buhari, urged Nigerian farmers to produce enough for the country to eat, saying that the country has “no money to import” food.

But every cloud has a silver lining. The food shortage has presented some agripreneurs in Nigeria with serendipitous opportunities.

Shola Ladoja is the founder of Simply Green, which is a farm-to-table company specializing in vegetables, fruits, juices, spices and herbs. The border lockdown has meant that many of the retail and supermarket chains can no longer import foreign produce into the country.

But this hurdle created a new opportunity for Ladoja.

“[Previously], I tried to get my juices into local stores in Nigeria but they all turned me down and most of them wanted to buy imported juices. The lockdown meant that they had to buy a local brand like mine because they could not get them from abroad anymore. We are now able to sell a lot more during this time than previous years,” says Ladoja.

On the logistics side, however, Ladoja has also felt the pinch of the pandemic like most business that require consistent movement of goods and services. The lockdown scenario prevented his workers from coming in and as a result, the company’s daily delivery of juices, has come to an abrupt stop.  

Ladoja has had to start thinking outside the box to make ends meet.

“We have come up with a fruit and vegetable box, which we sell directly on our website to our customers. So, they can now buy lettuce, kale and carrots, which we have never done before. So, this period has forced us to think about how we can expand the business and this time we actually created a new line of business, which was not in the plans for this year,” says Ladoja.

According to the United Nation’s Food and Agriculture Organization (FAO), even before the Covid-19 crisis, farmers had not been able to satisfy the demands of Nigeria’s population.

“I feel like the government should give out grants and loans and support for small businesses so that they don’t crash. I have friends who have complained they are going to shut down their businesses because they haven’t been paid for two months. A lot of people cannot sell their produce in Lagos because the markets are closed which is going to affect a lot of farmers at this time,” says Ladoja.

Nigeria used to import over a million tonnes of rice from Thailand annually. That number has been significantly reduced with the implementation of high import taxes. This has led to an abnormal increase in food prices in Nigeria since the onset of the coronavirus with the UN estimating the number of people facing acute food security stands to rise to 265 million globally in 2020 as a result of the economic impact of the pandemic.

Nigeria has substantially increased domestic rice production in the pandemic but is still a long way from reaching the levels needed for the country to sufficiently feed itself. Coupled with the decline in global oil prices, it is safe to say the adverse economic impact of Covid-19 on Africa’s most populous country is going to be felt for a long time to come.

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Entrepreneurs

All For Grooming Future Leaders

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Katlego Thwane has had to dip into his own savings, with the Covid-19 crisis, to fund his noble cause, teaching the underprivileged in a South African township.

He is in his twenties, yet turning around the destiny of underprivileged young people around him.

Katlego Thwane, a 28-year-old born and bred in South Africa’s lively township of Soweto, is an educator and founder of the Atlegang Bana Foundation here that caters to primary school learners who struggle to keep up at school and need additional help.

“Our foundation also provides for needy learners from underprivileged backgrounds. One of my biggest campaigns at the foundation every year is to give confidence and motivation to learners for the year ahead,” says Thwane.

He has bagged numerous awards and accolades for his work, as a 2017 Young Community Shaper, 2018 Lead SA hero and featuring on live television show Big Up on SABC Mzansi in 2018.

Growing up, he was a “naughty boy”, as he describes himself, but says many are now astonished at the serious, ambitious young man he has become.

“Teaching has always been a passion of mine. I love seeing change, transformation and grooming leaders, and value their education while being innovative in taking our country forward.”

Thwane has recently established a clothing brand, BANA, under the Atlegang Bana Foundation. He is also currently handing out food parcels to the needy in his community, in partnership with Hollywoodbets.

“The virus has affected us immensely with many parents losing their jobs or taking salary cuts, we are not receiving the financial support as before. This has led to me [dipping] into my own personal pocket and [using it] to buy tutors data for teaching virtually,” says Thwane.

Most schools continue operating online because learners haven’t as yet returned to school, however, this has come with its share of setbacks.

Makosha Masedi, a parent of a Grade 4 learner, says her challenges come with network issues and understanding the tasks given to the child.

“Some of the programs that the work is loaded on to is not friendly for all devices, so submitting and retrieving becomes a problem, as also understanding some of the work,” rues Masedi.

But Thwane powers on, hoping for a better tomorrow, for himself and his country.

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