When A Startup Goes Early On Succession Planning: Lessons From Super App, Gozem

The startup bubble in Africa is relatively new on the continent, and so stories of successful startups still revolve largely around “hero” founders seen as single-handedly responsible for the destiny of the startups they founded. But the Togo-based super app, Gozem, does not seem to be buying into this popular route. The three-year-old startup, co-founded by a Nigerian Emeka Ajene, and Singaporeans Gregory Costamagna and Raphael Dana, has embarked on a rigorous two-year Graduate Training Program for locals who hold relevant degrees in business administration. The training has long been kick-started in Togo and Benin Republic, the startup’s major countries of operations. 

Gozem hopes to instill in the trainees information concerning the startup’s entire activities at the same time reinforcing their skills, through the program.

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The Graduate Training Program aims to recruit our managers of tomorrow, in the local markets where we operate,” said Anne-Claire Longour, Global Human Resources Manager at Gozem.

Candidates selected to join the program will have the opportunity to work on various projects, with various teams and functional units at all levels of the company. They will learn more about Gozem in general and develop the strategic and global thinking we expect from our future managers. It’s a rich and comprehensive training that will help gain a broad knowledge of our entire company,” Longour added.

succession planning startup Gozem
Gozem is hoping to build a sustainable brand in Africa’s neglected markets. Image credits: Gozem

Succession Planning When Founders Find Themselves In Foreign Markets

Gozem’s latest move is not particularly unforeseen. It has been an ongoing trend for expat founders in Africa to co-found startups with locals. Despite its successes, the trend has in some cases resulted in internal crises. 

For instance, last year, a series of allegations for wrongful dismissal was levelled against expat founder Lauren Dunford. According to sources, Dunford continuously persuaded local co-founder Kennedy Nganga to resign and give up his shares for a separation offer. Dunford only reportedly resorted to trumping up charges against Nganga, and eventually firing him when he refused to comply. A good succession planning policy could have foreseen this and guided the co-founders appropriately in this situation. 

A startup can use a succession plan (usually achieved first by setting into motion a comprehensive succession planning policy) to prepare for planned or unplanned absences of its founders, directors or other top management, including key employees. The plans help all key stakeholders to know where the ship is headed in time. 

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Perhaps one good example of a failure in succession planning in an African company could be gleaned from a recent indicting report by Moody’s, the leading credit-rating and financial analysis agency, concerning the main reason why a foremost commercial bank in the country — Diamond — conceded to a merger with Nigeria’s leading commercial lender — Access Bank. The report particularly made reference to a letter written by a former chairman of Diamond Bank, Seyi Bickerstheth giving some hints on why Diamond Bank’s CEO should be replaced. 

“A key shareholder CSSAF DBN Holdings demanded an immediate removal of management, principally the CEO, but the Board favored a less drastic approach to minimise disruption and also enable the Board secure new leadership,” Bickerstheth wrote in the letter.

The eventual restructuring of the bank through a merger scheme largely followed the bank’s inability to constitute a new management team thereafter. A sound succession planning policy would have made all the difference about finding a perfect replacement for the bank’s CEO, while still meeting the expectations of diverse stakeholders. 

succession planning startup Gozem succession planning startup Gozem

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer