Arise Group’s Impact on African Economy: An Interview with Nikhil Ghandi

Gandhi’s vision for Africa is rooted in his belief in the continent’s untapped potential. “Africa is incredibly rich in natural resources and strategically located between the world’s major markets,” he explained. “However, the lack of local value addition has been a significant hurdle. Historically, countries like Gabon exported raw logs to Europe, China, and India. We changed this by establishing an industrial park in Gabon, attracting 200 companies from 19 countries to process timber locally. This created over 20,000 jobs and significantly boosted Gabon’s GDP.”

Gandhi believes that creating value chains within African countries is key to economic transformation. “In Benin, we transformed the entire cashew crop,” he noted. “Instead of exporting cashews to Vietnam for processing, we now process them in Benin and export directly to the US, Saudi Arabia, and the UAE. This not only develops local economies but also ensures more wealth is retained within the continent.”

Arise Group’s initiatives have significantly impacted the textile industry in Benin. “We are developing fully integrated textile units from farm to fashion. Brands like KIABI, US Polo, and H&M are now manufacturing their garments in Benin. In the last two years, we’ve created 10,000 jobs with our projects, and we aim to create at least 100,000 African jobs,” Gandhi elaborated.

Africa’s infrastructure deficits are another significant barrier to economic growth. “There is an 80% gap in infrastructure across Africa,” Gandhi remarked. “This gap includes essential infrastructure like roads, railways, and ports, which are critical for facilitating trade and investment. Our business is deeply integrated with high-capital expenditure projects focused on infrastructure development. We build roads, electric lines, railways, and airports. All our businesses are predominantly only in Africa, and our DNA is committed to making Africa thrive.”

Gandhi highlighted the importance of strategic infrastructure development. “We are not just building infrastructure for the sake of it,” he said. “We are creating the backbone for future economic growth. By improving connectivity and reducing logistics costs, we can make African products more competitive globally.”

Effective governance and stable policy frameworks are crucial for attracting investment, according to Gandhi. “Policy stability and good governance are crucial for attracting investment,” he emphasized. “We focus on educating policymakers and showcasing our credibility to navigate these challenges.”

He cited Rwanda as an example of good governance. “Rwanda is very progressive with no corruption and a great place to stay. We take time to educate policymakers and bureaucrats about the opportunities and what needs to be done. This helps in building a credible relationship that fosters growth.”

Gandhi’s vision includes creating comprehensive industrial parks that transform local economies. In Nigeria, Arise Group is developing a 5000-hectare industrial park in Ogun State. “Nigeria is our most exciting project,” he stated. “We want to develop Ogun State into a safe, secure industrial and residential hub, addressing issues like safety and currency devaluation.”

This vision extends to Rwanda, Kenya, and Tanzania, where Arise Group is building infrastructure and industrial parks to stimulate economic growth. “In Rwanda, we are expanding our industrial footprint, focusing on creating jobs and contributing to the GDP,” Gandhi said.

The industrial parks are designed to be self-sustaining hubs of economic activity. Gandhi elaborated on the vision for Ogun State, “We will develop it not just as an industrial park but also as a residential and retail hub with the best of education facilities. The new airport coming up inside our park will decongest Lagos and create a satellite brand new state.”

A critical issue for Africa is the low level of foreign direct investment (FDI). “Annually, $1.6 trillion of private FDI floats around the world, but Africa gets only 3%,” Gandhi pointed out. This is despite the continent’s rich natural resources and strategic location. “We are changing this by conducting roadshows and educating potential investors about the opportunities in Africa,” he added.

Arise Group’s strategy involves global outreach to attract investment. “We are doing 1,000 roadshows this year alone,” Gandhi explained. We have teams across India, China, Vietnam, the Middle East, Africa, the US, and Europe, reaching out to potential investors and promoting the opportunities in Africa.”

The journey to transforming Africa’s industrial landscape is fraught with challenges. Gandhi acknowledged these hurdles, “The journey has not been easy. There are huge gaps in infrastructure—an 80% gap in Africa. Policy frameworks and governance are also challenging. However, we focus on solutions. We educate policymakers and bureaucrats about the opportunities and showcase our credibility.”

He emphasized the importance of patience and a solution-oriented mindset. “Transforming Africa is our end goal. Yes, it sometimes gets frustrating, but every effort is well worth it. We navigate these challenges by staying committed to our mission and continuously finding ways to overcome obstacles.”

Looking ahead, Gandhi envisions a future where Africa plays a significant role in the global economy. “We aim to create a million jobs in the next 10 years,” he said. “This will significantly contribute to the GDP of African nations and transform their economies.”

Arise Group’s ambitious plans include expanding into new territories and building on their successes in countries like Gabon, Benin, and Nigeria. “We are moving into Ivory Coast and aggressively expanding in anglophone nations like Nigeria, Rwanda, Kenya, and Tanzania,” Gandhi shared. “Our goal is to replicate our success and create sustainable economic hubs across Africa.”

Nikhil Gandhi’s extensive experience and innovative approach are key to addressing Africa’s infrastructure and economic challenges. His work with Arise Group exemplifies how strategic investments in local value addition, infrastructure development, and education can transform the continent. As Gandhi aptly put it, “We are committed to making Africa thrive.” The journey is challenging, but with visionary leadership and a focus on local value addition, infrastructure development, and attracting foreign investment, Africa’s future looks promising.