• Friday, March 29, 2024
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‘To change the narrative of paper packaging industry requires innovation, technology’

‘To change the narrative of paper packaging industry requires innovation, technology’

The corporate paper packaging industry across Africa is taking a new growth dimension backed by technology and innovation. PRINCESS FUNLAYO BAKARE OKEOWO, Managing Director, FAE Limited in this interview with KELECHI EWUZIE speaks on the strides the company has made in pushing envelope manufacturing and customization across the country. She also speaks about plans for more collaboration via African Continental Free Trade Agreements to guarantee the safety of confidential documents for corporate entities across the continent. EXCERPT:

As a company that has operated for over three decades? What are some of the success stories that have made you stay above competitors?

I will ascribe the success story of FAE to the zeal of the management team towards embracing innovation and technology.

Prior to now, many believe that paper envelope must tear; but with our latest innovative products, we have changed the narrative of paper packaging with our tear resistance, water and tamper-proof envelopes proudly manufactured in Nigeria with the finest technology. Tamper-proof envelopes are ideal for security documents for banks, law firms, election materials, examination materials, forensic evidence materials etc. We do not take this feat for granted as FAE Limited is the only indigenous manufacturer who offers such product and a range of other unique paper packaging products in the whole of West Africa.

FAE Limited has managed to retain its leader title in the industry, due to her penchant for excellence, innovation and customer satisfaction. Moreso, with the premium services we offer in the paper packaging sector, FAE Limited conveniently compete with global brands offering clients within Nigerian and beyond the best of paper packaging products.

We also pride ourselves in manufacturing products that covey style, professionalism and guarantee safety for all our customers.

Read Also: Tech vs. Tech: How technology may save or destroy mother earth

For you to come this far, you must have had some ups and downs in the journey. Was there any point in time when you felt like quitting? Any regrets being where you find yourself as a company?

There is no human endeavor that is devoid of challenges. My personal resolve has always been to face challenges squarely and overcome it. I have never and will never entertain the idea of quitting in the face of obstacles because this disposition can be demoralizing and harmful to health. Ultimately, my default response to challenging situations is to embrace changes and make good use of the opportunities that lie in wait for me. To the Glory of God, FAE Limited grew from a humble beginning as a stationery merchant to a full-blown manufacturing concern with million-dollar investment in state of the art equipment. So far we have no regrets but testimonies of how we daily satisfy our clients with the best of paper packaging products in the last 40years.

Increasingly, technology is narrowing the space for professional practices across all sectors with its disruptive impact. How true is this? How prepared are you as a chief executive officer of a company for this new normal going forward?

Technology is good because it makes running a business easier. Albeit, I strongly believe in the envelope manufacturing business because technology growth or not some documents are best dispatched in an envelope. It is given that technology plays a key role in development, nonetheless, it is advisable not to follow technology blindly but strategically.

Communication through electronic mails may be the trend but that should not hamper the hardcopy approach to sending letters or confidential documents as we must imbibe a culture that encourages the survival of the paper manufacturing sector. Also, a balance has to be created as there is a need for consideration of people who prefer their communication in hard copy and others who have little or no access to the internet for accessing online information. Hence our message has been for the government to ensure there is balance in our adoption of what technology has to offer.

For instance, Royal Mail in England is about the biggest money-making avenue for the British government, the same goes for the Canadian posts and that of America. if these countries had brushed hardcopy aside or brushed posting letters aside, will their post offices thrive? As Nigeria daily embraces digitization, our recommendation is for it not to be used at the detriment of paper-based communication.

Coronavirus pandemic has greatly impacted organizations globally, is this in any way impacting operations of your company. What measures have been put in place to overcome these challenges?

The Corona virus pandemic dealt a huge blow on a number of businesses and many have sort ways to re-strategize having evaluated the impact of the pandemic on their business.

As a company, we had to totally shut down operations in the peak of the pandemic. But with the easing of lockdown, the company started with about 20 percent production personnel. Later 50 percent after ensuring necessary precautionary measures are being put in place to curtail the spread of the virus while adhering strictly to NCDC and WHO guidelines. Even presently, we are not yet operating at 100 percent staff capacity as we wish to take everything in steps to prevent putting the lives of our staff and customers at risk.

It may interest you to note that FAE during the lockdown ensured members of staff were paid their salaries and made sure no one was sacked during the period we didn’t produce.

How would you assess the corporate paper packaging industry in Nigeria? How would you score its performance?

Corporate paper packaging industry in Nigeria is performing relatively well, but the industry has a major challenge in the sense that government is not paying the needed attention to the paper industry in Nigeria. A country like Egypt has over 25 paper mills fully operational, but the same cannot be said of Nigeria.

Currently, the country can only boast of about three paper mills which are servicing the corrugators, (these are cartons manufacturers), all they do is a brown craft.

However, if you look at our day-to-day corporate operation in Nigeria, every office no matter the size makes use of white papers. Ironically, Nigeria does not have a paper mill that produces white paper. This is worrisome because of the consumption of white paper in Nigeria is enormous and we are not taking advantage of this opportunity. Imagine the huge sum of foreign exchange expended in the importation of raw materials and the Nigerian government is not taking advantage of this golden opportunity by having its own paper mill that produces white paper. We believe the Nigerian government can conserve the already scarce foreign exchange through investment in a paper mill. The country needs a paper research Institute, a functional and effective forestry department because there are lots of developments that researchers in the country can engage in to give the paper packaging industry the support it deserves. Investing in a research institute is something that the government should look into to help grow the paper industry.

What are some of the challenges you have faced playing in the paper packaging industry and what strategic steps have you taken to solve them?

There are several frustrating challenges players in the paper industry face. The challenge of stable electricity is one. Only recently there was an increase in electricity tariff as well as an increment in the petrol pump price.

As much as I understand that the government is faced with its own challenges they should not forget that companies are paying taxes and this must count in the provision of the basic infrastructure needed to operate competitively.

Government need to understand that if companies are frustrated out of business the window of revenue generated from the company, the tax will be shut and ultimately lead to a the shortfall in the nation’s revenue. With Nigeria joining the African Continental Free Trade Area (AfCFTA) taking off January 2021, now is the time for the government to encourage businesses to thrive.

Access to raw materials and forex, Research and development are major challenges in your industry. What measures are being put in place to keep the business flowing?

I am in Nigeria producing for Nigerians. I am proud to be in Nigeria. I don’t have anywhere to go to. This is my fatherland and I have made up my mind. I have this zeal that despite all the challenges, I must move on.

A businessman (Trader) can quit his business and venture into another at will but this cannot be the same for an industrialist who has invested in machinery and raw material and most important with a passion for manufacturing. Quitting is not in the DNA of manufacturers, all we need is encouragement and support.

The solution to the challenge of lack of raw materials in the industry is backward integration which the government should encourage. My appeal to the government is to give manufacturers, grace period of 10years to backward integrate and gain sufficiency to effectively operate.

The projection is that in the next 10 years, manufacturers will be exporters of goods that will earn the country more foreign exchange.

For now, scarcity of forex is a burning challenge which manufacturers need immediate intervention on as its unavailability is fast telling an untold hardship in production process and adversely affecting the competitiveness of Made in Nigeria Products.

When you look at economic indices like poverty, high unemployment rate, health and education. What advice do you have for the government to address these issues?

My recommendation to Government is to have the political will to address corruption, inefficiency and halt policy summersaults.

I can understand that government have their challenges, but I think having political will, help to resolve so many things.

At the moment, the government is making provision for soft loans to be accessed by qualified Small and Medium Scale Enterprises, an initiative I believe is laudable and should be encouraged.

In addition, the government should enforce the implementation of business-friendly policies that will help existing businesses strive and encourage new ones for the growth and development of the economy.

As a woman in manufacturing, I am impressed with the current administration’s drive to help women succeed in business, a move I must say is in the right direction.

What are your projections for FAE limited in the next 5 years?

In the next five years, my projection for FAE Limited is to be the Number One Paper Packaging Manufacturer in West Africa vis-a-vis the African Continental Free Trade Agreements which would take off in January 2021.

We are currently working on ensuring our company’s brand of envelopes are readily available all over regions in West African and beyond.