Tekedia Capital is excited to announce further investment in Shoptreo, Africa’s largest indigenous B2B fashion ecommerce. Anywhere you are in the world, Shoptreo will help you source shoes, bags and clothes, in bulk, from makers and innovators across Nigeria.

They began in Aba, and have expanded to Ibadan, and on the way to Kano, creating thousands of jobs, and generating $millions in GMV.  But it does not stop there, Shoptreo provides working capital, making it possible for those designers and stylists to have resources to create and produce the products. It is a symphonic funding innovation where you fund your pipelines to deepen competitive positioning in the market. On average, makers within the Shoptreo network outperform peers by 70% on earnings.

I am also happy to announce that Shoptreo (shoptreo.com) will be launching the “Treo” brand in 2025. The Treo brand will unite shoemakers to produce within Treo quality and standards, and through that mechanism, will have economies of scale, and capture more market positioning. The thesis behind this was borrowed from FrieslandCampina, a multi-billion dollar multinational conglomerate established by dairy farmers who came together, and by working together, they improved quality, and deepened scale in Europe, and today own many global markets. Your Peak Milk comes from them. Shoptreo is out to replicate that model in the shoe making space, starting in Aba, Nigeria.

We commend the vision, tenacity and excellence of the Shoptreo team, led by Emmanuel Jacobs and George Uteh,  and are happy to further support them, as they scale opportunities in markets.

We’re Tekedia Capital (capital.tekedia.com), we vote with money where innovators gather to create and build. What are you building?

We Can Use FrieslandCampina’s Model to Fix Aba Shoe and Leather Industry in Nigeria

The Federal Government of Nigeria has signed a landmark Memorandum of Understanding (MoU) with the Republic of France, aiming to enhance and diversify the critical mineral value chain in Nigeria’s solid minerals sector.

This was disclosed in a statement on Sunday by the Special Assistant on Media to the Minister of Solid Minerals Development, Segun Tomori.

He said the MoU signing was done by the Minister of Solid Minerals Development, Dele Alake, on the sidelines of President Bola Tinubu’s visit to France.

“Critical minerals such as copper, lithium, nickel, cobalt, and rare earth elements are essential to clean energy technologies,” the statement read.

“Both countries agreed to collaborate on research, training and Franco-Nigerian students exchanges for knowledge and skills transfer.

“A key component of the MOU is the promotion of sustainable mining activities by executing projects and programmes that reduce the environmental impact of mining on carbon emissions, water consumption, and climate change.”

The agreement, signed during President Bola Tinubu’s visit to France, signals a potential shift in the mining industry, as both nations explore opportunities in the extraction and processing of key minerals like copper, lithium, nickel, cobalt, and rare earth elements—resources essential for clean energy technologies.

This development comes amidst growing speculation that France is seeking to replace its reliance on critical minerals sourced from former colonies in the Sahel region, following strained diplomatic ties with those nations. France has historically depended on Burkina Faso, Niger, Chad, and others for mineral extraction, leveraging long-standing colonial relationships.

However, recent geopolitical upheavals have seen these countries cutting ties with France, forcing the European nation to explore alternative sources of critical minerals to sustain its industrial needs and energy transition goals.

The MoU represents a strategic opportunity for France to secure a new mineral field, but it also raises significant concerns in Nigeria. Many Nigerians worry that the country could become a replacement for France’s former colonies, sparking fears of economic dependency and exploitation.

These concerns are rooted in a historical context where resource-rich African nations often fail to benefit equitably from the extraction of their natural resources, leaving behind environmental degradation and economic disparities.

Nigeria, with its abundant yet underexplored reserves of critical minerals, is viewed as a potential game-changer in the global supply chain for clean energy technologies. The partnership outlined in the MoU aims to attract French investment into Nigeria’s solid minerals sector, providing much-needed capital and expertise to develop the industry. It includes provisions for sustainable mining practices, transparency, and the inclusion of local communities in the developmental process.

However, many are concerned that the collaboration could repeat patterns seen in other African nations where foreign partnerships primarily serve the interests of external stakeholders.

The signing of the MoU also highlights Nigeria’s broader economic ambitions. With the Tinubu administration prioritizing the diversification of the economy beyond oil and gas, the solid minerals sector has been identified as a critical area for growth.

Minister of Solid Minerals Development Dele Alake emphasized that the partnership with France would open Nigeria’s mining sector to global investors while leveraging French expertise to enhance local capacity. Provisions for research collaboration, training, and student exchanges aim to facilitate knowledge transfer and empower Nigerian professionals in the field.

“It also includes the establishment of joint execrative and processing projects through co-financing by public and private entities to diversify and secure the supply of critical minerals and decarbonize energy projects critical to the value chain,” the minister said.

Recent shifts in the Sahel region have seen countries like Niger nationalizing their resources, signaling a broader African pushback against foreign control over critical industries. Observers note that France’s pivot to Nigeria could be driven by the need to mitigate the fallout from losing access to its traditional sources of minerals in West Africa.

Alake said both nations have pledged to adopt international best practices in the execution of projects, with a focus on reducing environmental impacts such as carbon emissions and water consumption. Additionally, the partnership seeks to ensure that local communities benefit from mining activities, with mechanisms to improve living conditions and economic opportunities.

However, despite skepticism, many believe that this agreement could position Nigeria as a key player in the global critical minerals market while potentially redefining its relationship with foreign powers. Yet, for this potential to be realized, the government has been urged to ensure that the benefits of the partnership are felt at all levels of society and that the country’s natural wealth is managed in the interests of its people.

China has cemented its position as the undisputed leader in the global electric vehicle (EV) market, capturing an impressive 76% of the worldwide share in October, according to data from the China Passenger Car Association (CPCA).

The surge reflects both robust domestic demand and strategic government support, even as Western tariffs increasingly stymie exports.

Between January and October 2024, global EV sales totaled 14.1 million units, with 69% of those occurring in China. In October alone, the country’s share rose beyond three-quarters, reinforcing its dominance in the sector. This marks a significant leap from 2023, when China accounted for just under 60% of new EV registrations globally, as reported by the International Energy Agency.

China’s Green Push Meets Western Resistance

EVs, named by Beijing as one of the “new three” priority areas for economic growth and green transition, are a cornerstone of China’s broader strategy to lead the global energy revolution. However, this ambition is being met with growing resistance from Western markets.

The United States has effectively barred Chinese EVs from its market, with President Joe Biden raising tariffs on Chinese electric cars from 25% to 100% earlier this year. Former President Donald Trump, a contender in the upcoming elections, has vowed to impose an additional 10% levy on all Chinese imports if reelected.

The European Union has similarly escalated its trade measures, imposing tariffs of up to 35% on Chinese EVs, in addition to existing duties of 10%. These actions have drawn sharp criticism from Beijing, which views the moves as protectionist barriers against its rapidly expanding EV industry.

Resilience at Home and Strategic Shifts Abroad

Against the backdrop of Western tariffs, China’s domestic market has remained a pillar of strength for its EV industry. The government recently doubled subsidies for EV buyers, providing 20,000 yuan ($2,750) to consumers trading in conventional vehicles. This policy has buoyed domestic demand, allowing Chinese manufacturers to maintain robust production levels.

Tesla, the American EV giant led by Elon Musk, has also benefited from China’s pro-EV policies. The company reported a 7% increase in sales during the third quarter, partly attributed to the enhanced subsidies. Musk’s relationship with Beijing and Tesla’s localized production facilities have enabled the company to navigate the complex trade environment more effectively than other Western automakers.

Expanding Markets to Russia and Beyond

China’s auto exports to Russia have surged amid declining shipments to the U.S. and Europe. Over the past two years, exports to Russia have grown by 109%, contrasting with a 23% decline in exports to the United States during the same period.

Cui Dongshu, secretary-general of the CPCA, highlighted the strategic importance of the Russian market.

“Chinese carmakers are eager to export to Russia,” he said, pointing out that many international competitors have avoided the market due to geopolitical risks following the invasion of Ukraine in 2022.

China’s dominance in the EV market comes at a pivotal moment in global energy and economic transitions. With domestic sales providing a buffer against Western trade restrictions, Chinese automakers are well-positioned to explore emerging markets in Africa, the Middle East, and South America.

However, the increasing reliance on state subsidies and the growing isolation from Western markets pose challenges. As Western nations intensify their tariffs and promote domestic production, China may face hurdles in maintaining its growth trajectory without significant shifts in its export strategy.

For now, China’s electric vehicle market stands as a testament to its industrial and economic might, showcasing a blend of strategic government intervention, technological innovation, and market adaptability. Whether this dominance can withstand rising geopolitical tensions and trade barriers remains a crucial question for the future of global EV markets.

However, there is a growing belief that China is on the right path to conquer every sector of the global economy, resulting in the tariffs by the West, rattled by the South Asian giant’s rapid acceleration.