“We make all the carcasses of all our vehicles here, but we import some engines and electrical and body parts, but we produce all the plastic parts here." Chief Innocent Chukwuma, Chairman, Innoson Vehicle Manufacturing Company (IVM)
This is the model
1. Find a product that China exports to Nigeria
2. Go to China, look at their machines and their processes, copy them, give a rival Chinese company the contract to build the same machine for you, and import the machine back to Nigeria
3. Now import the CKD of that Chinese finished import, but make some parts locally; that will reduce the cost. Your products become cheaper than a Chinese Yuan-priced import.
4. Yes, you will struggle with ease-of-doing-business issues like power and high cost of credit. Yes, BUT the monthly minimum wage is roughly $240 to $395 USD in China, compared to about $42 to $45 USD in Nigeria. The more value you add locally in Nigeria, the lower your cost compared to China
That's how you fight China: Europeans and American cant do this because they have higher wage costs, but Africans have a huge cost advantage we are not exploiting.
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