Interview with Adam Molai – Africa Trade Engine Founder
In probably one of the most important discussions I have had on No Free Lunch, I spoke with The Adam Molai The Chairmen and co-founder of Africa Trade Engine about where the opportunities for growing intra-African trade and industrialisation opportunities lie.
The interview delves into the intricacies of intra-African trade and the potential for economic transformation through industrialisation and value addition. Adam Molai, a prominent entrepreneur, shares insights from his experiences in the African trade sector, emphasizing the importance of beneficiation and local manufacturing to enhance economic growth and create employment opportunities.
Molai highlights the current state of intra-African trade, which stands at a mere 18-20%, and underscores the need for Africa to add value to its raw materials rather than exporting them in their raw form. He shares his journey in the tobacco industry in Zimbabwe, where strategic interventions led to a significant increase in production and the inclusion of a diverse group of farmers. This example serves as a proof point for the potential of planned strategies in transforming industries and uplifting communities.
The conversation also touches on the challenges and opportunities within the African market, particularly in the context of the African Continental Free Trade Area (AfCFTA). Molai advocates for leveraging regional cooperation as a stepping stone towards broader continental integration, suggesting that working within existing regional frameworks like ECOWAS and SADC can provide a solid foundation for future cross-regional trade.
Building Africa’s Industrialisation
Molai’s vision for Africa includes a focus on industrialization and the development of local manufacturing capabilities. He points out the untapped potential in sectors such as aerosols, where West Africa imports billions of dollars’ worth of products that could be manufactured locally. By processing raw materials like butane to cosmetic-grade standards, Africa can reduce imports, create jobs, and stimulate economic growth.
Throughout the discussion, Molai emphasizes the importance of strategic thinking and problem-solving for entrepreneurs. He advises young entrepreneurs to focus on identifying and solving real problems rather than chasing trends. Access to markets remains a significant barrier, and Molai stresses the need for infrastructure and policy alignment to facilitate trade and economic development.
Listen Here:
Key Quotes from Adam Molai:
- “Today, West Africa is importing almost five billion dollars of aerosol. There is not one can of deodorant or any other aerosol product of that nature that is manufactured in West Africa.”
- “Our Benin facility is going to, in the first 12 months, probably employ 1,200, 1,400 people. Here (in South Africa), within our first 12 months of setting up, we’ve created employment for now over 750 people.”
- “My whole life has been about beneficiation. The start of my productive life, when I finished my degree in Canada, I got back home and decided I was going to be in business.”
- “Somebody needs to fill that gap. And that’s where I feel we as Africa need to come in and fill that gap in terms of the low end of the manufacturing spectrum.”
- “The biggest barrier to entry and why we did this, access to market. Access to market was what was my biggest impediment in my whole entrepreneurial journey.”
- “Let’s work with the tailwind, not create a headwind. So the tailwind is the regional cooperation is working. So let’s work within that region first.”
