“The perceived risks of doing business in Africa are far greater than the actual risks … Nigeria is a very important country for us. There [are] a lot of headlines today about the Niger Delta but I think we should point out that that’s just one piece of Nigeria. Nigeria is a lot more than the Niger Delta, it’s a lot more than the Oil industry. We have actually managed to generate significant returns doing business [on] the continent, tapping into sectors that are domestically-focused like Telecommunications, Transportation, Agribusiness, Utilities, etc., and I think that those opportunities will continue to be present for the foreseeable future” – Genevieve Sangudi, Managing Director, Emerging Capital Partners

“If you look at what’s happening in Nigeria: 10 years ago, 350,000 telephone lines; today, 60 million. Huge opportunities” – Rotimi Oyekanmi, CEO, West Africa, Renaissance Capital Partners

This video shows a discussion of the risks of doing business in Africa, with Genevieve Sangudi, Managing Director at Emerging Capital Partners, and Rotimi Oyekanmi, Managing Director at Renaissance Capital.

There are risks associated with doing business anywhere in the world, Africa included. Sometimes, the risks associated with doing business in Africa are exaggerated. Doing business in Africa, like anywhere in the world, requires taking sufficient and well-informed steps to manage the risks, as well as adapting the business plan to accommodate the potentially higher costs. Generally speaking, the higher returns one would experience in Africa outweigh the associated increase in risk.

Genevieve Sangudi is a Managing Director of Emerging Capital Partners (ECP), based in Lagos. Ms. Sangudi joined the ECP investment team in 2004 and served as an Investment Officer for Africa Fund I. Ms. Sangudi previously worked in marketing and business development at Procter & Gamble, where she was part of a cross-functional team that oversaw several multi-billion dollar brands.

Ms. Sangudi currently sits on the boards of Blue Financial Services (South Africa), Continental Reinsurance (Nigeria), and Ocean & Oil (Nigeria). She holds an MBA and a Masters in International Affairs from Columbia University. Ms. Sangudi is a citizen of the U.S. and Tanzania.

Rotimi Oyekanmi is the CEO (West Africa) of and a Managing Director at Renaissance Capital Partners, based in Lagos. Prior to Renaissance, Mr. Oyekanmi was the Chief Executive Officer of SME Manager Limited. Mr. Oyekanmi’s previous experience included work at the African Capital Alliance (ACA) Manager Limited, Ventures & Trusts, Prime Merchant Bank, International Institute of Tropical Agriculture, and Arthur Andersen. After obtaining an undergraduate degree in Economics from the University of Ibadan in 1981 and a Master degree in Operations Research from the London School of Economics and Political Science, Rotimi qualified as a Nigerian Chartered Accountant, winning two national prizes in the qualifying examinations

Emerging Capital Partners (ECP) is the first private equity group to raise more than $1.6 billion for investment in companies across the African continent. The firm’s investment strategy is focused on delivering consistently above-market returns to investors that are uncorrelated to the U.S. and other global economies. Today, ECP has a nine-year track-record of investing in Africa.

ECP’s track record in private equity investing across the African continent includes:

• Six private equity funds focused on Africa, totaling more than $1.6 billion under management
• Over 50 investments, 20 exits, and a strong portfolio of remaining transactions
• Investments in more than 40 countries, in all major regions of the African continent

Renaissance Capital is a leading investment bank focused on the emerging markets, including sub-Saharan Africa. The Firm also offers its clients access to these markets through financial centers such as London and New York. Renaissance Capital was founded in 1995 as a Moscow-based investment bank. It is part of the Renaissance Group, a group of investment banking, asset management, merchant banking, and consumer finance companies that operates in emerging markets.

Visit Emerging Capital Partners’ website …

Visit Renaissance Capital Partners’ website …

This clip was aired on CNBC on May 21, 2009.