It was only a year ago when Mauricio Castillo moved his wife and four small children from their home in Ecuador to Addis Ababa, Ethiopia.
His reason for moving? Opportunity.
“There’s only four countries in the world with the ability to produce great flowers for commercial wholesale– Columbia, Ecuador, Kenya, and Ethiopia,” he says.
Castillo, who had already started a very successful flower business in Ecuador, was allured to the African continent by the cheap price of production. Besides the inexpensive labor and rich natural resources, the Ethiopian government, like most other African countries, offers many incentives for investors.
For Castillo and his local Ethiopian partner, they received 74 hectors of land free from the government. Additionally, they can import any machinery they want without paying customs tax and all of their flowers can be imported into America or Europe duty free.
Yet despite all the advantages, the first year in business has been less than rosy. From the lengthy bureaucratic procedures to an untrained workforce, Castillo and his company Afriflower, PLC have faced many challenges.
‘I want to move a kilometer, but instead I only go a meter,” says Castillo regarding his progress.
When asked if he could do it all over again, what changes would he make, Castillo says, “Nothing. There’s been a lesson in it all.”
Three Lessons Learned
Despite his short time on the continent, he has many bits of wisdom for future investors.
Castillo first recommends choosing a country for the environment not just the opportunity. For example, when he was deciding between Kenya and Ethiopia he took a three week trip to each country. While he adored his time in Kenya and admits it’s a beautiful country whose flower industry is much more advanced than Ethiopia’s, he still chose not to live there.
“Ethiopia is much safer. I have children to take care of, and I feel more comfortable with them living in Addis than Nairobi,” says the devoted family man.
In the end, it was the right choice too. “I love living in Ethiopia and so do my kids.”
The second advice Castillo says is, “You have to have a lot of patience, and you have to push every day for what you want.”
One of biggest challenges for him has been transferring the knowledge and technology he has from Ecuador to his employees in Ethiopia. “There is a big gap in education and it takes a lot of patience to instill the necessary skills.”
To solve this problem, he hired some of his technicians in Ecuador to come and conduct training which has proved to be an immense help.
His last token of wisdom is to see the long term vision.
Those interested in coming need to realize it might not be a quick turnover. The margins will get there eventually though, and in the long term prove to be a very successful investment of both time and money.
Regarding his own project, Castillo confidently believes, “The numbers are all there. I know it will happen.”
In the meantime, he plans on spending the next three to four years in Ethiopia before moving back to Ecuador and managing his farm from afar.
Still Growing
Castillo’s story is growing just like his promising flower company. Eventually he expects to have over 1000 employees and ship internationally throughout the world.
The ambitious vision may seem far out especially when considering he only has a 110 workers now, but Castillo says, “I always stay positive,” knowing that with continued persistence it will pay off.
In the meantime, despite his big dreams, Castillo’s ego remains anything but large. “I’m just a low profile guy,” he humbly admits.
And while his remarkable success in flower farms before this no doubt enhances his current project, Castillo proves that doing business in Africa isn’t just for large corporations.
If someone has the right experience and is willing to be patient, the long term benefits can be enormous. They can also be rewarding for those interested in making not only money, but becoming a chapter in the continent’s story of development.
Business in Africa is blooming, and those who choose to sow the seeds of investment now will reap the flowers of tomorrow.
[sagoodnews]