[Interview] Olivier Poujade, Managing Director, East Africa Gate, Ethiopia
East Africa Gate (EAGate) is a dynamic French/Ethiopian business partnership founded by University of Toulouse (France) graduates, Ms. Tigist Getachew Araya and Mr. Olivier Poujade. Together they combine close to 20 years of experience in emerging markets in the legal, finance and business strategy fields.
Olivier’s interview with Africa Business Communities:
Would you please introduce East Africa Gate?
EAGate has rapidly become a reference for accurate business information and tailored investment solutions in Ethiopia. In order to respond to the needs of our clients, we have grown the team to a pool of 10 experts covering all business advisory services.
We believe in a three-pronged approach to the Ethiopian market, i.e. Understand (industry analysis, market survey, market research, sectorial interviews, strategic monitoring and business intelligence), Network (partner identification, B2B delegations, private and institutional networking and advocacy) and Act (market penetration strategies, support to investment licensing, organisation of distribution networks, support to operations).
In which industries does East Africa Gate operate and who are your clients?
Our business caters to companies in a variety of sectors, with past experiences in consumer goods, manufacturing, healthcare, education and agro-processing. As a boutique investment advisory firm we are driven by the needs of our clients thus we are not limited to a specific sector.
We service several categories of customers; SMEs and large groups through European public institutions (Flemish Government - Flanders Investment and Trade; French Government - Business France; or the Finnish Government - Finpro).
We also represent in Ethiopia several European based chambers of commerce (Bretagne Commerce International or the Club Bordeaux-Afrique).
EAGate also provides direct advice on the ground to multinational companies including Unilever, Diageo, International SOS or Yara, in Ethiopia and Djibouti.
We are a “boutique” firm so we only take a limited number of clients for whom we provide tailor made services from business visas to licensing and advocacy.
What are the USPs of your business?
Ethiopia cumulates several key factors that are the right ingredients for exponential growth: a large demography (94 million – 2nd most populated country in Africa), a Government that invests massively in infrastructure and targets inclusive growth, a clear investment framework, the largest airline in Africa (84 destinations) and ample resources (potash, gas, large agricultural lands and the largest livestock in Africa). However Ethiopia still remains unknown, especially by European players, more accustomed to countries in the Northern and Western parts of the Continent and South Africa.
Such fast growing emerging markets are the solution to the lack of growth we witness in Europe and the decline of the ones in Asia. The era of double digits growth now belongs to Africa. We have built EAGate’s à la carte services and its team in order to ensure that our clients do not miss the opportunity and tap into the potential that Ethiopia has to offer.
Our strength is our local knowledge and the multicultural team of EAGate, with various backgrounds in large corporations as well as smaller consulting firms in developed and emerging markets (including South-East Asia). Every service is tailored to the operational needs of each client and we are proud of our high rate of client satisfaction.
Why did you start East Africa Gate?
It is a long story, however to make it short: I have family ties to Ethiopia and have been visiting the country for close to 10 years prior to moving there in 2012. Each trip was an opportunity to build a network, learn the language and appreciate everything that the country has to offer. A few years back, still based in Asia, we started noticing that Ethiopia was showing remarkable similarities to the development path that South-East Asian Tigers were on a few years prior. It was clear to us that our emerging market business experience and connections would be a plus to the countries. We therefore decided to move the family there and become an active player of the changes and growth occurring.
Several of our previous business connections followed us and we quickly incorporated East Africa Gate (EAGate) in order to provide solutions to them in this opaque market.
What was your professional career pre-East Africa Gate?
In the past decade, I managed services for a leading construction group (Bouygues), advised foreign investors in a boutique consulting firm and pursued investment opportunities as a the Investment Advisory Manager for a private investment fund.
In addition to that, I always believed in having a social involvement and following my role as the Vice-Chairman of the French Chamber of Commerce in Vietnam, the EU business community in Ethiopia has entrusted me with the role of Secretary of the local EU chamber of commerce (EU Business Forum in Ethiopia), a key role allowing me to be involved in the improvement of the business climate in the country, hand-in-hand with the Government of Ethiopia.
What other organizations/activities are you involved in?
In late 2013, when I accepted the role of Secretary at the EU Business Forum in Ethiopia, the Chamber had less than 30 members that met at the founding event of the Association. Three years down the line, we have now grown to a full-fledged chamber, with 110 members and in constant dialogue with the Ethiopian Government to improve the business climate in the country. Through that and under the direction of the EU Delegation to Ethiopia and the participation of EU Member States, we have founded a Technical Committee with high-ranking representatives of the Ethiopian Government. We meet on a quarterly basis and exchange on the issues of the local EU business community, that we believe is now made of more than 300 companies, and growing.
What can be done by entrepreneurs and government to stimulate the business environment in Ethiopia?
The business climate is the key to attracting further foreign direct investments in emerging markets, in dire need of development of a local supply chain and access to foreign currency. The local entrepreneurs must be organised in business communities, allowing them to collect feedback from the community members on what constitutes obstacles to the development of a conducive business climate. This information must then be shared with the Government, which in turn needs to recognize those impediments and act upon the information received in order to enact the relevant investment framework and implement it.
What’s the best part about doing business in/with Africa?
For Ethiopia, the market is extremely exciting and similar to what happened 15 years ago in Asia. Locals believe in the future and that their lives will never be the same. Economic growth can be seen and witnessed at every street corner in Addis Ababa and it is very rewarding to be a part of it.
In addition to that, and contrary to the general idea that people may have of Africa, the continent is deeply resourceful. When I mean resources, it’s not just about its mineral resources but more about the people, their ingenuity, resilience, capacity to rebound and willingness to leap-frog to Europe’s current stage of development. This is why I like to refer to them as “converging markets” as within 20 years, some of the countries in Africa will be offering a living environment similar to western standards.
What can you say about the targets, plans and ambitions of East Africa Gate for the rest of 2015?
Early 2015, we started a series of awareness and promotional events about Ethiopia’s development and opportunities. This included several conferences in France and Belgium in front of an audience of EU potential investors. This directly led to several trade delegations organised for late 2015 with French professional associations and the Belgian Government and Brussels Chamber of Commerce.
We have also started a deal flow for local Ethiopian entrepreneurs looking into strategic partnerships and foreign investors to develop their business lines. We have started working with several consumer goods companies, real estate projects and farms.
Do you believe Social Media and the Internet to be a plus to the business environment, as it applies to your industry?
Our business model requires bridging the gap between foreign investors and local opportunities. Therefore, the use of Internet is a must and we would not be able to operate as such without it. Social Medias are a big plus not only for us, but also for all emerging countries, as we use it to pass information and develop awareness of what is happening within the country. Recently we have developed several sectorial reports on agriculture, agro-processing, manufacturing, tourism, infrastructure and investment framework. We share this information through social media (Twitter, Linkedin, Facebook) and make it available on our website.
What expectations do you have for Ethiopia’s economy in the last quarter of 2015?
As any fast growing emerging market, Ethiopia does suffer from temporary macroeconomic challenges. For the 2nd part of 2015, this is reflected in the limited access to foreign currency and some level of inflation. We believe this is a natural process and the issuance of the new Growth & Transformation Plan II (2015 – 2020) confirms the Government will now focus on the development of the private sector, with an incentive on supply chain, agro-processing (including textile and leather) and renewable energies. The recent elections (May-June 2015) and the positive results have shown that the Government is on the right track and receives the support of the population in its development strategies. This is good news for 2016 and should bring more opportunities and a stronger economy for next year. The World Bank, usually known for its conservatism, has forecasted double digit growth (10.5%) of the gross domestic product (GDP) for Ethiopia in 2016, which makes of the country one of the world fastest growing economies.
Which African countries will perform best in 2015?
Ethiopia is definitely on top of my list for three main reasons: (1) a strong state that provides clear legal text and guidance on investment, (2) the absence of easily accessible oil that would make the country dependent on commodity prices and (3) an economy that is growing on a South-East Asia model, benefiting from the increase in cost there and the transfer of operations, especially in textile industry, to Ethiopia.
Other top African countries would be Rwanda, with its focus on telecom, IT and banking and its clear investment framework; as well as Botswana for its resources, stability and infrastructures.
www.linkedin.com/in/olivierpoujade
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Africa Business Communities is conducting a series of interviews with CEO's and high-end professionals from and/or operating in Africa. Are you interested in an interview? Please send an e-mail to andrea@africabusinesscommunities.com