In an episode of the latest season of the Smartpreneur TV show, Kikelomo Fola-Ogunniya engages in a candid conversation with our host, Elsie Godwin. They delve into the intricacies of managing a logistics business, tackling challenges related to foreign exchange, and navigating pricing strategies.
Kikelomo is the Co-founder of Cargoplug, a leading company specializing in seamless cross-border logistics services for businesses operating in and out of Africa. For over a decade, Cargoplug, formerly called Jand2Gidi, has established itself as a reliable and trusted platform, resolving the complexities surrounding shipping to and from the African continent.
Watch the Smartpreneur show every week on these stations:
- STV Lagos: Fridays at 9:30 AM
- RSTV Port Harcourt: Saturdays at 11 AM
- ITV Benin: Fridays at 4:30 PM
Here are excerpts:
Elsie: What’s the most challenging thing about running a logistics business in Nigeria?
Kikelomo: Because of the business we run, which is mainly imports, it’s foreign exchange. As foreign exchange is increasing the buying power of our typical or our previous target audience is reducing, that’s B2C but now, Cargoplug as a B2B business just needs to continue to render the same fantastic service.
We know that businesses have to bring in their raw materials, they have to bring in equipment for their businesses so goods are going to be coming in anyway. We continue adding value to customers so that they are at least getting the value from what they are paying for. If you’re paying N100 to bring in your vessels, printing equipment or whatever it is, get the most value out of that so that you can at least feel like you gained value from whatever it is you’re spending even though the exchange rate is hitting people right now.
Exchange rate, inflation, all kinds of things are hitting our customers
Elsie: Does the exchange rate affect the pricing of your services?
Kikelomo: Yes it does. For example, from the UK we charge a fee in pounds. The fee is in pounds but the exchange rate changes so we give customers the option of paying us in pounds that way, the exchange rate has nothing to do with them. But most customers want to pay in Naira. So if you’re paying in Naira, of course the rate flunctuates.
Elsie: How do you protect your business from exchange rate volatility?
Kikelomo: The exchange rate is going gaga, one thing in the morning, another in the afternoon, something else in the evening but what we do is try to strengthen our Naira generating business, exports for example. We do food exports. You know a lot of people are moving out of the country and Nigerians in diaspora need these food products and we’re able to get them to their doorsteps
We’re pushing our exports and it has grown astronomically this year. We’re helping Nigerian businesses earn forex, you know when you sell on social media, people are paying you in foreign exchange and that helps boost the Nigerian economy. That’s what we’ve done, boosting exports in particular.
Elsie: Do you think small businesses know how to go about exports, especially those that produce items that could appeal to international markets?
Kikelomo: Yes. I think in the past, people were a bit skeptical but now, it’s easier. There’s information with the growth of social media, and ecommerce itself. When you realize that there’s an order from Turkey, from Ukraine, etc, you can’t continue to say ‘No’ to foreign exchange. So you keep seeing businesses like ours, show you how to go through the process. In fact businesses do not need to know how to go through the process as long as they have a reliable delivery partner that knows what they are doing. So Cargoplug is your number one plug.