33: How to Build a Company Ethically in Africa aka "NOT 419"

24-01-2024 • 9 mins

In this episode, Eunice Ajim discusses the challenges and risks associated with building a company in Nigeria. She highlights the negative impact of the African press on the perception of African startups and emphasizes the need for more positive coverage. Eunice also emphasizes the importance of due diligence in the investment process and shares her experiences in detecting fraudulent practices. She discusses the consequences of fraud for founders and the legal implications, especially for international investors. Finally, she provides recommendations for investors to mitigate risks and encourages ethical business practices.

Takeaways

- The African press should focus on sharing positive stories and successful use cases of African startups to counterbalance the negative perception.

- Due diligence is crucial for investors to identify and mitigate risks associated with fraudulent practices.

- Fraudulent practices can have severe consequences for founders, including reputational damage and difficulty in raising future funding.

- International investors should be aware of the legal implications and potential challenges when investing in African startups.

- Investors should consider working with experienced funds or syndications to leverage their expertise in conducting thorough due diligence.

Chapters

00:00 Introduction and Setting the Context

01:17 The Role of African Press in Shaping Perceptions

02:12 The Importance of Due Diligence in Investing

03:10 Detecting Fraudulent Practices

05:00 The Consequences of Fraud for Founders