How three Ivorian companies are competing with international brands | Financial Issues

Abidjan, Ivory Coast – Over the years, the main shopping markets in Ivory Coast have been built around international companies with established brands, international chains and deep investments.

But several businesses in the Ivory Coast are now finding room to grow.

From oil distribution and digital banking to cosmetics, these companies are entering sectors that have long been dominated by foreign companies, building customers at home and looking beyond Ivory Coast’s borders.

Their rise does not reflect the decline of multinational companies, which remain leaders in the overall economy. In fact, the experience of Petro Ivoire, Djamo and Kaira Holding shows how some domestic companies are competing and moving quickly, understanding their markets and investing in innovation.

Oil problem

When Petro Ivoire entered the oil sector in Ivory Coast in 1994, oil companies around the world controlled a large market.

Today, the company is said to be the largest oil distribution company in the country and ranks third behind TotalEnergies and Shell.

The CEO of Petro Ivoire, Sebastien Kadio-Morokro, said that the founders of the company believe that domestic business can compete by combining market knowledge with international policies.

“In the 1990s, the market was controlled by different countries,” Kadio-Morokro told Al Jazeera. “My late father’s idea was that, because of the local expertise we have acquired in this project, it was important to provide real products to the local market while strictly adhering to international standards.”

The company says it now has about 15 percent of the oil market in Ivory Coast. Kadio-Morokro said being local allows the company to make decisions faster than many of its international competitors.

“When a wise decision needs to be made, we can quickly call our organization and move forward,” he said. “We don’t have to do much in making decisions in their headquarters overseas.”

This strategy enabled Petro Ivoire to enter the butane market in 2007, a sector in which the company claims to be leading. It is also investing in electric vehicles as Ivory Coast prepares to transform transport and energy use.

For Kadio-Morokro, the company’s experience highlights the biggest challenge facing African businesses: building confidence that companies made on the continent can compete at scale.

“Africans must believe in their countries, they are their continent,” he said. “There’s no reason we can’t do well at home.”

Digital banking

In West Africa’s financial sector, a company is challenging traditional banking methods.

Djamo was founded in Ivory Coast in 2020, offering accounts, backups and financial products via mobile. The company says it now serves more than two million customers and 10,000 small businesses.

For co-founder Hassan Bourgi, one of the biggest hurdles was convincing investors that francophone West Africa could create a tech company that could scale.

“The biggest problem we faced is that our region has not yet been used by international investors,” Bourgi told Al Jazeera. “In the past, technology investment went into four main areas: Nigeria, Kenya, South Africa and Egypt.”

Djamo sought to challenge that perception by showing investors that companies from francophone markets can grow beyond their borders.

“We showed investors that it is possible to build a big company here,” said Bourgi. “We demonstrated the stability of our finances and the CFA franc, which made us a solid place to build and expand.”

The company focuses on young consumers, building a platform around the habits of a generation that already knows digital services.

“Generation Z is the cornerstone around which we have built our products,” said Bourgi. “We wanted to provide content that resonates with people’s everyday experiences on global platforms.”

Expanding

The expansion of companies such as Petro Ivoire and Djamo comes as Ivory Coast seeks to strengthen its public services and support businesses beyond the national market.

The International Finance Corporation (IFC) and the employers’ organization of the Ivory Coast, CGECI, have launched programs aimed at helping promising companies to access capital, strengthen management and prepare for regional expansion.

For many entrepreneurs, the challenge is not just building a successful home business but building a company large enough to compete across borders.

Few stories capture this journey better than Kaira Holding.

From cots to cosmetics

In 2009, Fode Kaira Yatabare launched her jewelry company from a two-room apartment in Abidjan.

The building served as both a home and an office. Every night he slept on a folding military mat that had to be carried every morning to find a place to work.

Today, Kaira Holding exports beauty and personal care products to 32 countries in Africa, Europe and the Middle East.

“I am a new generation of African entrepreneurs who passionately believe in creating and adding value,” Yatabare told Al Jazeera.

“When we started, the investment costs were very high. We built a small two-room house. We only got 4 million CFA (about $7,000) to start making soap.”

The company invested in packaging, printing and manufacturing, reducing its dependence on imports.

“Many people fail to realize that manufacturing costs in Africa can be lower than in China if you coordinate your costing process,” Yatabare said. “This vertical integration has made us more competitive.”

Kaira Holding is now expanding its research capabilities and plans to enter new markets, including China.

The events of Petro Ivoire, Djamo and Kaira Holding do not represent the end of multinational influence in Ivory Coast. But he shows how some African businesses are creating value by being close to consumers, making decisions quickly and investing.

For Yatabare, that desire reflects a changing mindset among businessmen on the continent.

“Africa has changed,” he told Al Jazeera. “We are moving forward guided by one goal: from Côte d’Ivoire to the world.”