I am seeing something in the Nigerian startup ecosystem: semi agro-processing companies will unlock huge opportunities over the next decade. Yes, while everyone is fixated on fintech, the companies which can actually IPO (initial public offering) on the Nigerian stock exchange will be agro-processing startups.
In the last 6-9 years, Okomu Oil (a big agro company) and similar firms have outperformed most sectors, but telecoms, in the exchange. Yes, if you picked Okomu or Presco as your investment a couple of years ago, your Salah or Christmas will be looking bigger now. Indeed, they have returned solid numbers, superior to most banks.
But they’re yet to unlock core latent opportunities in the agro-processing category. We think their own “fintech” moment will happen just as fintech, superimposed on banks, delivered alpha. The “fintechs” of the agro-sector look promising.
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(I do not want to list these companies yet, but there are about 3-5 of them which can lead that future)
People will eat and the paralysis of forex in Nigeria will put these new species of agro-companies in solid competitive positions to create strong moats. Those positions will deliver superb numbers for investors. At Tekedia Capital, we’re closing on one, and we hope to expand our antenna to pick the signals out of those domains. #agroWealth is real.
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