The unassuming storefront on a bustling Lagos street might not hint at the legacy it represents. Yet, for generations, this family-owned business has thrived, weathering economic storms and adapting to a rapidly evolving marketplace. This is a story echoed across Africa, where family businesses form the backbone of the continent’s economy. Recognising their significance, the Family Business Summit emerged as a platform to empower these dynasties, guiding them towards building sustainable, multi-generational success.
The recently concluded 2024 edition, themed “Family Business Legacy: Strategies for Building and Maintaining Multigenerational Wealth,” served as a testament to the growing importance of this sector. The summit, envisioned by Oghenevwoke Ighure and co-organised by BusinessDay newspaper with support from PricewaterhouseCoopers (PwC) Nigeria, convened leading Nigerian family business leaders and shareholders. Over four days, from October 17 to 20, participants engaged in a series of thought-provoking discussions, workshops and networking events designed to equip them with the tools and strategies needed to navigate the complexities of the modern business landscape.
The first day of the summit featured a series of keynote speeches and panel discussions addressing these challenges.
The summit’s significance is underscored by a startling statistic revealed by Sam Abu, Country and Regional Senior Partner, West Africa at PwC Nigeria, while speaking at the event, which took place at the Wheatbaker Hotel in Lagos. A staggering 70 per cent of global wealth creation can be attributed to family businesses. In Nigeria itself, this figure holds even greater weight. Over 70 per cent of small and medium-scale enterprises (SMEs) are family-owned, contributing nearly 50 per cent of the nation’s GDP. These numbers paint a clear picture: family businesses are the lifeblood of the Nigerian economy.
Abu noted that the African economy faces unique challenges, including fluctuating currency values, inflation, and exchange rate volatility. However, he emphasised that Africa remains one of the fastest-growing regions in the world, with immense potential for investment and expansion.
However, despite their undeniable contribution, family-owned enterprises face unique challenges. Abu highlighted several hurdles, including technological advancements like Artificial Intelligence and the need for digital transformation, the growing importance of sustainability and environmental, social and governance (ESG) considerations, and the ever-increasing pressure of globalisation, which brings both opportunities and vulnerabilities.Africa’s specific economic landscape presents its own set of obstacles. Fluctuating currencies, inflation, and exchange rate volatility pose significant challenges. Yet, amidst these difficulties, Africa remains a region brimming with potential for investment and growth.
Abu noted that the African economy faces unique challenges, including fluctuating currency values, inflation, and exchange rate volatility. However, he emphasised that Africa remains one of the fastest-growing regions in the world, with immense potential for investment and expansion.
“Family businesses in Nigeria struggle with balancing family values with governance and professionalism, family traditions with technology innovations, and transitioning from owners to successors,” Abu said. “The best way to overcome these challenges is to focus on strategies and innovations to build a better family business and embrace technology and new mechanisms for generational wealth”.
The summit delved into these very issues, offering practical solutions and fostering a spirit of collaboration. Leaders from Nigeria’s top family businesses shared their experiences and insights on navigating these complexities and driving innovation during the panels that held on day one featuring Austin Avuru, Kemi Ojenike, Johannes Rettig, Abisola Atitebi, Adeolu Idowu, Weyinmi Oritsejafor, Mayowa Ikotun and a host of others.
They shared their experiences and insights on navigating the complexities of family business governance and succession planning, emphasising the importance of building robust structures and mechanisms to ensure the longevity of family businesses. Sustainability, many of them agreed, is key, adding that family businesses must embrace technological advancements and integrate sustainability and ESG principles into their business models to remain competitive in a rapidly changing global market.
Also highlighted was the role of innovation in maintaining a competitive edge.
A highlight of the opening day was the recognition accorded to notable family business leaders like Oba Otudeko, Chairman of Honeywell Group, Stella Okoli, Founder and CEO of Emzor Pharmaceutical Industries and a host of others. Oghenevwoke Ighure, the convener of the event, expressed his enthusiasm for the future of family businesses in Nigeria, saying the gathering was for preserving the legacy and strength of family businesses.
He announced that the summit also included themed workshops and networking events covering crucial topics such as corporate governance, financing and generational handover. A boot camp designed for the next generation of family business leaders providing valuable insights into leadership transitions to participants with the skills needed to lead their family businesses into the future.#Isa Omagu, the Divisional Head, Services Industries, Bank of Industry Limited, who represented Dr Olasupo Olusi, the MD/CEO of the bank, delivered a keynote on “Building and Maintaining Family Wealth”.
Earlier in the day, Frank Aigbogun, BusinessDay’s CEO, have a rousing welcome to those on attendance.
The Family Business Summit 2024 stands as a testament to the collective strength and resilience of family businesses in Africa. By fostering knowledge sharing, innovation and collaboration, the summit empowers these dynasties to not only survive but thrive in a rapidly changing world.
As Africa continues its economic journey, the success of these family-owned enterprises will undoubtedly play a pivotal role in shaping the continent’s future.