In the heart of West Africa, the early morning hums of Dakar blend with the rhythmic thrum of a burgeoning entrepreneurial spirit. To the east, the rolling hills of Kigali awaken with a quiet determination, underscoring Rwanda’s moniker, the land of a thousand hills and a million opportunities.
These two countries, distinct in geography yet united in ambition, have become luminous case studies for transforming local industries into economic powerhouses poised to conquer the African market under the African Continental Free Trade Agreement (AfCFTA).
Meanwhile, Nigeria—Africa’s most populous country and largest economy—finds itself at a crossroads. With an estimated gross domestic product (GDP) of $477 billion and vast resources, Nigeria has the potential to dominate Africa’s economic landscape. But to fully unlock its potential, it must take a page from the success stories of Senegal and Rwanda.
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Senegal: Threads of Culture and Economy
Senegal, celebrated for its vibrant music and artistry, has strategically leveraged its cultural capital to fuel economic growth. The textile industry, particularly the production of bazin riche—the luxurious, hand-dyed cotton fabric—has transcended borders, finding markets as far as Côte d’Ivoire and Mali.
Statistics from the Senegalese Ministry of Industry reveal that the textile sector alone accounts for 7 per cent of Senegal’s GDP and employs over 500,000 artisans across the value chain.
Behind this success lies an ingenious blend of government policy and entrepreneurial zeal. In 2015, Senegal launched the Plan Sénégal Émergent (PSE), a national strategy prioritising industrialisation. Through tax incentives, grants, and access to low-interest loans, small-scale textile producers received the financial boost needed to scale their operations. Entrepreneurs, on the other hand, demonstrated resilience and innovation.
Take Fatou Diop, a 38-year-old entrepreneur in Kaolack, who redefined her small weaving business by adopting solar-powered machinery funded through government grants. Her fabrics, adorned with intricate Wolof patterns, now dominate markets in Abidjan.
“Our ancestors told stories through these patterns,” she says with pride. “Today, these stories travel across Africa, carrying the soul of Senegal with them.”
Rwanda: A High-Tech Leap in the Heart of Africa
Rwanda’s transformation has been dubbed an “economic miracle,” and its technology sector is a shining beacon of this narrative. The government’s Vision 2020 initiative laid the groundwork for innovation, creating a fertile environment for tech startups.
In 2018, Rwanda inaugurated the Kigali Innovation City, a $2 billion project designed to attract investments in ICT, healthcare, and education. Today, tech contributes over 15 per cent of Rwanda’s GDP and is growing at an annual rate of 25 per cent, according to the Rwandan Ministry of Trade and Industry.
One standout success is SafeMotos, a tech-driven motorbike taxi service akin to Uber but tailored to Rwanda’s unique urban mobility challenges. Founded by a pair of local entrepreneurs, the service has reduced accident rates by 40 per cent in Kigali while generating employment for thousands of young riders. “We’re not just solving transportation issues; we’re reshaping how Rwandans interact with technology,” says one of its founders, Patrice Mukiza.
Crucial to Rwanda’s success has been its emphasis on fostering partnerships. Through the Made in Rwanda initiative, the government reduced import taxes on machinery, making it easier for startups to acquire high-tech tools.
Moreover, through regional partnerships, Rwandan tech solutions are now being exported to East African neighbours like Uganda and Kenya, showcasing a pan-African spirit of collaboration.
What Nigeria Can Learn
Nigeria’s sheer size gives it a unique advantage, but size alone is not enough. It must emulate the structured approach that Senegal and Rwanda have used to transform local industries into regional powerhouses.
Policy as a Catalyst:
Senegal’s Plan Sénégal Émergent and Rwanda’s Vision 2020 highlight the importance of clear, actionable national strategies. Nigeria’s National Economic Sustainability Plan must be backed by efficient implementation and monitoring, focusing on key industries where Nigeria has competitive advantages, such as textiles, agro-processing, and technology.
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Revitalising the Textile Industry:
Like Senegal, Nigeria has a rich textile heritage, especially in the north, where traditional fabrics like adire and aso oke are produced. Yet, Nigeria’s textile industry has suffered due to smuggling and a lack of infrastructure. With proper incentives—such as grants for artisans, subsidies for energy, and tariffs on imported fabrics—Nigeria could revive its textile sector, turning it into a key contributor to GDP while creating jobs.
Fostering Innovation:
Rwanda’s focus on tech shows that even a small nation can punch above its weight in a knowledge-driven economy. Nigeria, with its booming tech ecosystem—led by hubs in Lagos and Abuja—must provide better support for startups. Tax holidays, government-backed accelerators, and partnerships with private investors could accelerate Nigeria’s digital transformation.
Incentivising Agro-Processing:
Nigeria is Africa’s largest producer of cassava, yam, and palm oil, yet much of this produce is exported raw, limiting its economic value. Learning from Rwanda’s success in exporting premium-grade coffee, Nigeria could focus on processing and packaging its agricultural products for export under the AfCFTA framework.
Building Regional Brands:
Rwanda’s gorilla tourism and Senegal’s cultural festivals have become symbols of their national identity and economic strategy. Nigeria, with its globally recognised Nollywood and music industry, has an untapped potential to brand itself as a cultural and creative powerhouse, drawing in tourists and fostering cross-border trade in entertainment.
Five Industries Poised for AfCFTA Triumph
Nigeria has the resources and talent to scale its local industries Africa-wide, particularly in the following sectors:
Textiles and Apparel: Leveraging traditional craftsmanship with modern machinery, as seen in Senegal.
Agriculture and Agro-Processing: Investing in value addition, from cassava flour to palm oil derivatives.
Technology: Scaling innovations from hubs in Lagos and Abuja to other African markets.
Tourism: Promoting destinations like Calabar, Obudu Cattle Ranch, and Lagos beaches as part of an Africa-wide travel ecosystem.
Renewable Energy: Emulating Senegal’s solar-powered solutions to electrify rural areas and create green industries.
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The Threads of Success
Three key elements bind Senegal’s, Rwanda’s, and Nigeria’s paths to success:
Policy Backbone: Strategic planning like Senegal’s and Rwanda’s initiatives must be Nigeria’s playbook.
Entrepreneurial Resilience: Local businesses in Nigeria, like its thriving tech startups and agro-processors, must embrace change and innovation.
Cultural Identity: Nigeria’s rich history, diverse traditions, and global influence are invaluable assets that can drive economic growth.
A Call to Action
The AfCFTA promises to reshape Africa’s economic future, offering a $3.4 trillion market waiting to be tapped. Senegal and Rwanda demonstrate that size does not determine success—strategy, innovation, and resilience do. Nigeria, as the continent’s giant, must rise to the occasion.
Fatou Diop’s fabrics from Senegal and Patrice Mukiza’s tech startup from Rwanda are more than economic successes; they are symbols of Africa’s boundless potential. Nigeria, with its wealth of talent and resources, must craft its own success story, weaving a narrative of shared prosperity, resilience, and limitless opportunity. As one Nigerian entrepreneur aptly put it, “Africa’s time is now. The question is, are we ready to lead?”
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