Nigerian Entrepreneur Encourages Investments in Africa

Nigerian entrepreneur Toks Abimbola addressed the obstacles facing African economic development and investment at an intimate gathering in Winthrop House’s Tonkens Room yesterday.

Abimbola serves as the managing partner of Shoreline Energy International, a leading African holding company currently valued at over $120 million. The group aims to build infrastructure in sub-Saharan Africa through the acquisition of construction, oil, gas, and power companies.

With years of experience in international business, Abimbola attested to a recent change in the prospects for African development. While the continent had previously been plagued by political strife and corruption, he said, many African governments have taken steps towards reform. Due to greater political stability, young entrepreneurs now have the incentive and capability to succeed.

“There is a generation of opportunity in Africa,” Abimola said.

However, Abimola said, the continent’s historical record continues to hurt international investment. While companies are eager to invest in India and China, they remain skeptical of corruption in African business and government.

“Many investment bankers are very narrow-minded and lack a vision for the future,” Abimola said. “We’re at a disadvantage because people are always checking up on us,”

Due to the lack of existing infrastructure in Africa, Abimola has cultivated an alternative business model. Rather than building new companies, Shoreline Energy International acquires existing firms at all stages of energy production.

“Vertical integration is old hat in Europe,” Abimbola said. “But in Africa, you need to control the beginning and end of production, since suppliers are unreliable.”

The discussion, called “Building a 21st Century African Growth Company,” was hosted by the Harvard International Business Club. The event’s organizer, Katherine Y. Han ’10, said she hopes that more undergraduates will consider careers in Africa, especially considering the current state of the American economy.

“I certainly think that this is a good time and opportunity for people to start thinking beyond North America and Europe,” Han said.

Lawrence K. Barchok ’12, a native of Kenya, said that he wants to return to Africa after graduate school.

Following the event, he introduced himself to Abimola, who told him, “Well, don’t spend too long. Go and make some money back at home.”