Social impacts profitable for African entrepreneurs

Across Nigeria at any given moment, more than 12 million gaspowered generators are running. They churn out megatons of greenhouse gas annually, and sometimes kill entire families with their fumes.

Nigeria’s undersized energy grid barely provides electricity for a quarter of the nation’s 190 million citizens. Even then, it’s often just a few hours of power a day. Most Nigerians rely on small, gas-powered generators in homes and small businesses. Apart from environmental and health damage, fuel is an unwelcome cost in a country where the average yearly income is US$3,596.

Ademola Adesina saw his country’s power problem as an opportunity.

Using a pay-as-you-go leasing model, Adesina’s startup Rensource replaces gas generators with hybrid solar-battery systems. Zero emissions, and the monthly fee is less than the upkeep of a generator. Since launching this past February, Rensource has installed 500 solar systems. The company plans to replace 500,000 gas generators with renewable energy during five years.

With African nations undergoing a business renaissance, Adesina represents the continent’s rising entrepreneurial class. He’s among those finding a profitable niche by taking on social and environmental challenges.

“It’s all that I see in Nigeria. The most viable and successful businesses target some sort of (social or environmental) impact,” he says.

These businesses aren’t learning about corporate social responsibility after they launch. “They’re doing it from the start because it makes the most business sense,” adds Eliot Pence, a Washington-based investment adviser and founder of the Africa Expert Network, consultants for companies wanting to do business in Africa.

Adesina and Pence both point to another prime example of Africa’s entrepreneurship working for social impact, Andela. This three-year-old firm already has built an international reputation for training young Nigerians, Kenyans and Ugandans in software development, then connecting participants with tech companies around the world. The business is creating job opportunities, especially for those from low-income backgrounds, and raising local wages while stemming the brain drain of skilled professionals fleeing the continent.

Look no further than last year’s winners of the Africa Entrepreneurship Awards.

zero-waste palm fruit processing facility that uses every part of the palm plant to produce consumer goods, from cakes to skin care products. A valuable resource in his home country, Liberia, the business has increased incomes for small-scale palm farmers by 200 per cent.

won recognition for Elea, a company producing affordable and reusable sanitary pads. One in ten girls in subSaharan Africa skip school during their periods because they cannot afford expensive disposable pads.

Abdelim Moumen invented a “molecular diagnostic kit” that allows rural clinics to spot health issues such as breast cancer and Hepatitis C quickly and inexpensively. His company, Moldiag, began producing kits this year to sell across Africa.

African entrepreneurs have found their niche solving social problems for considerable profit, and to the benefit of their communities. This is the future of business. Entrepreneurs around the world should take note, or risk being left behind. Craig and Marc Kielburger are the co-founders of the WE movement, which includes WE Charity, ME to WE Social Enterprise and WE Day. For more dispatches, check out WE Stories.