Deepankar Rustagi, CEO of OmniRetail and a Stanford GSB alumnus, has been recognized as the founder of Africa’s fastest-growing company in 2024 by Financial Times. With a focus on Nigeria, known as the “Giant of Africa,” Rustagi sees the country’s abundant natural resources, youthful population, and flourishing market as attractive for business investments, especially in scalable asset businesses.
FMCG manufacturers in developing markets face challenges such as high storage costs, limited reach to customers, and restrictions on direct sales. With traditional trade channels being dominant, visibility loss post-delivery and limited access to capital for retailers and wholesalers are common obstacles. Economic volatility, including currency depreciation and fluctuating exchange rates, further complicates the operating environment for FMCG businesses.
To overcome these challenges, Rustagi suggests hedging fixed costs, focusing on collaboration for digitalization, and establishing different brands at different price points. He also highlights the projection of population and retail growth in Nigeria. With a growing population and a large youth demographic, a projected household consumption of N96 trillion by 2025 indicates a promising future for consumer goods businesses in Nigeria.
Rustagi emphasizes the importance of creating a robust retail infrastructure in Nigeria and lists strategies for business leaders and entrepreneurs to consider, such as understanding the local market, leveraging technology, and building strong local partnerships. Drawing from his 16 years of experience as an African entrepreneur, Rustagi shares key lessons learned in Nigeria’s retail sector, including the need for adaptability, viewing the market as a long-term commitment, and letting data drive decision-making.
In conclusion, Rustagi encourages businesses to reconsider exiting Nigeria and instead seize the opportunities for expansion and growth. Despite the challenges, Nigeria’s market offers immense potential for scalable asset-light businesses. By staying invested and adapting strategies to local conditions, companies can position themselves for long-term success and contribute to the sustainable development of Nigeria’s economy. With his expertise and experience, Rustagi is poised to make a significant impact in Africa’s retail sector.
