Bangkok, Thailand – During the recently concluded Forbes Global CEO Conference, Halima Aliko-Dangote, Group Executive Director of Dangote Industries Limited, underscored the vital role that family-owned businesses (FOBs) play in driving economic success and fostering community development worldwide.
Speaking at a panel titled “Family Business: Looking at the Next Frontier,” she highlighted that staying true to core values and adopting strategic practices prioritizing long-term growth can enable FOBs to create substantial value for their shareholders and society at large.
Halima, who also oversees the Family Office of the Dangote Group, emphasized the resilience and longevity exhibited by family-owned businesses, stating they have adeptly weathered challenges over decades.
She shared the stage with industry peers, including Carolyn Choo of Worldwide Hotels, Rose Damen of Damen Yachting, and Caroline Link of B.GRIMM Pharma, who echoed similar sentiments regarding the strength and significance of family enterprises in today's global economy.
“Success in family-owned businesses begins with shared values, clear goals, and robust governance policies,” Halima remarked, adding that reputation is a critical component of Family Capital.
She pointed to governance structures, customer satisfaction, meritocracy, and social responsibility as essential factors contributing to the success of family businesses.
Highlighting the Dangote Group's approach, Halima noted that their governance policies integrate diverse perspectives, with each business unit comprising at least three independent directors to prevent operations in silos.
She illustrated the Group's commitment to sustainable business practices, saying, “We family-owned businesses have to stick to our tradition of being asset-rich but cash-moderate.
“We perpetuate a profitable business with strong values while contributing significantly to the global economy.”
Citing a study by McKinsey, Halima informed attendees that family-owned businesses account for over 70% of global GDP, generate annual turnovers between $60 trillion and $70 trillion, and provide around 60% of global employment.
“These businesses not only create jobs but also sustain communities and drive development in vital sectors like manufacturing, education, healthcare, and infrastructure,” she asserted.
Halima also discussed the importance of preparing the next generation for leadership roles within family businesses, explaining both internal and external capacity-building approaches.
Internally, she said, many families set up internship programs to foster the development of young family members.
“In Nigeria, we train the next generation from the ground up, ensuring they understand the intricacies of the business before taking on leadership roles,” she shared.
Externally, she encouraged families to expose younger generations to opportunities outside the family business for broader skill acquisition.
Drawing from her experience, Halima mentioned starting her career as an Analyst at KPMG, which provided her with a fresh perspective before she joined Dangote Industries Limited.
“This practice mitigates the familiarities of family life, fostering professional accountability in the next generation,” she explained.
Addressing the challenges of succession planning, Halima called for proactive engagement of younger leaders, promoting open conversations where their ideas can flourish.
She emphasized the balance required between honouring tradition and embracing innovation to maintain relevance in the shifting marketplace.
“Successful family businesses adapt to changing consumer preferences and technological advancements while leveraging their longstanding expertise,” she concluded, reinforcing the concept that family-owned businesses are crucial to both economic stability and community enrichment worldwide.
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