Features
The Power of Human Migration in the 21st Century
By Johann D. Harnoss, Associate Director, Innovation, BCG Henderson Institute, Berlin
Anna Schwarz, Head of Programme – Global Transformation, Heinrich-Böll-Stiftung European Union
Martin Reeves, Chairman, BCG Henderson Institute
Francois Canndelon, Global Director, BCG Henderson Institute
Apple’s iPhones, Tesla’s cars and Pfizer’s RNA-based COVID-19 vaccines are some of the everyday innovations that change our lives for the better, but they carry a greater significance as well. Each one was conceived by a small team of boundary-breaking inventors who share something in common: These innovations were driven by immigrant founders—people who had crossed physical borders before advancing the boundaries of what’s possible for all of us.
Humans cross borders and humans create boundary-breaking innovations. Humans crossing borders invariably create global networks. By migrating, people connect the new contacts they form in their destination countries with the ones in their communities of origin. Seen from this vantage point, people do not merely leave one country and arrive at another; they bridge the two.
Immigrants drive innovation in both destination and origin countries. Immigrants drive innovation either directly, through entrepreneurial or inventive activity, or through their close collaboration with native workers in companies of all sizes. As the global leader in attracting skilled foreign talent, the United States provides a good magnifying glass to examine migrants’ entrepreneurial and inventive activity.
On the company level, 45% of all Fortune 500 companies were founded by an immigrant or the child of an immigrant, and 50 out of 91 startup companies worth more than $1 billion had at least one immigrant founder. As of today, more than 3 million immigrants (skilled and unskilled) have become entrepreneurs, creating a total of 8 million jobs. Immigrants also contribute significantly to economy-wide innovation: Since the 1970s, about 30% of all increases in per capita productivity in the US can be traced back to immigrants innovating closely together with locals. Countries in Europe and Asia see similar patterns, though at somewhat lower magnitudes.
Indeed, immigrants tend to increase productivity in most countries around the world, largely because of the diversity of perspectives, experiences and ideas that they contribute when working closely with locals in companies in their destination countries. These innovation-inducing effects are mostly—if not exclusively—driven by skilled talent.
In addition to driving innovation, immigrants also trigger innovation by increasing the spectrum of consumer tastes and needs that companies can serve. The story of Richard Montañez, a PepsiCo janitor and the son of a Mexican immigrant, illustrates this nicely. Following the temporary breakdown of a machine that dusted the cheese-flavoured snacks the company made, he added flavours inspired by Mexican street food to the bare chips—and instantly realized he was on to something. Recognizing an opportunity to create a product that would appeal to his own demographic, he pitched his idea to the CEO of PepsiCo and thus invented a best-selling snack, Flamin’ Hot Cheetos, which has since grown into a multimillion-dollar franchise for PepsiCo.
Migrants also generate powerful, yet largely overlooked, innovation effects in origin countries. Leveraging global networks, migrants often reinvest capital in, and transmit productive ideas to, their countries of origin. Migrant diaspora networks can thus drive capital accumulation, innovation and catch-up growth in origin countries.
The IT industry in India, for instance, owes its existence in no small part to Indian-born talent that returned home after education and work abroad, notably in the US. Consider Faqir Chand Kohli. After obtaining a degree from MIT and working in Boston, New York and Canada, he took the lead at Tata Consultancy Services, building it into India’s largest IT service company.
These stories are clear causal evidence that countries tend to develop new companies and industries as a direct result of having created migration networks with people in places that already possess the latent knowledge required to build such value-creation steps. In other words, a country is much more likely to start producing a certain product from scratch if a destination country of its emigrants excels in producing that product.
Immigrants in destination countries constitute a sizeable work force. They fill labour shortages and, perhaps counter-intuitively, drive up wages for domestic workers. Working for wages many times higher than those in their origin countries, migrants create significant demand for goods and services, thus fueling economic growth in destination countries. Strikingly, migrants also tend to moderately increase the wages of the locals they work with. Because more diverse teams are often more productive, they tend to bump local workers into communication and oversight roles, which are usually better compensated. While there are certainly instances of job competition between native workers and immigrants at the lower end of the skill spectrum, the overall effect on job creation and wage levels tends to be positive.
Positive effects of migration also emerge in origin countries. Direct cash remittances are the most well-known. In 2020 alone, migrants sent home $660 billion. These remittances, among others, are a highly effective means of supporting investments in education, especially for women, thereby contributing to growth in origin countries.
In a country like Nigeria, in 2018, $6.4bn worth of FDI came into Nigeria showing an increase compared to the $3.8bn of 2017. It is worthy to note that the main investing countries in Nigeria are USA, China, United Kingdom, the Netherlands and France.
We live in a world in which the movement of people is much more tightly restricted than capital and goods are. As a result, the number of people around the world who would like to move and work abroad, if they could, is vast: from 750 million to 2.5 billion people, or about 50% of all people of working age.
However, worries about brain drain are the number one reason why leaders do not actively embrace the movement of skilled people but take a reactive approach instead. But this shouldn’t be so.
Tolu Oyekan, partner at BCG Lagos office said: “The truth is that many Nigerians in the Diaspora are desirous of investing and establishing business ventures in Nigeria as well as outside of the country. For instance, the pan-African digital payment company, the Interswitch Group, is regarded as Africa’s first fintech unicorn. It was established by a Nigerian graduate, Mitchell Elegbe, who worked for a few years in the UK and returned to Nigeria to establish the Interswitch Group. Also, Dr. Ola Brown studied in the US, worked a bit in the UK, and with her specialised training in aviation medicine, pioneered West Africa’s first air-operated emergency medical services in Nigeria called Flying Doctors Nigeria Ltd.
The emerging consensus among academics is that skilled migration is rarely a brain drain and can be structured in a way as to become a win for all parties involved. This is mainly because of the previously overlooked large, positive innovation- and growth-stimulating effects of skilled diaspora networks sending capital, knowledge, ideas and ideals back to their origin countries.
Consequently, we should see skilled migration not as a game of winners and losers, but as one in which all can win—like global trade. Policymakers would be well advised to see the true contribution of skilled immigrants, not in terms of just getting a job done, but as contributing to a more dynamic, vital society. This includes immigrants’ entrepreneurial activity, direct and indirect creative contributions, and the effect on economic growth of their own domestic consumption and taxes.
At BCG, we propose that CEOs and policymakers take four actions now, in order to tap into the large potential created by humans crossing borders:
Start from the top. Begin by focusing on migrants who have either a university education or vocational training—even though it’s not easy to do, in practice, and it limits the overall promise. In parallel, continue the urgent political and operational efforts to saf
eguard the livelihoods and dignity of refugees and undocumented migrants.
Create win-wins. Close the innovation and growth loops between countries of origin and destination countries by designing multilateral policies, firm engagement and technology to digitally accelerate the circular flow of ideas, capital and ideals.
Strive for vitality. As a policymaker, keep an eye on today’s and tomorrow’s local labour market needs, but be sure to recognize immigrants and your own diaspora of emigrants as sources of dynamism and vitality.
Innovate to lead. As a business leader, recognize and act on the immediate talent advantage inherent in global talent pools—but do not stop there. Embrace cultural diversity and the functional diversity it brings to jointly solve hard problems of discovery in innovation. And if you believe that talent is universal, but opportunity is not, ask yourself whether this is a cause that you, as a business leader, would want to lead.
The movement of people across borders is as intricately linked with human existence as is the movement of goods—trade. Yet until now, people crossing borders have received less strategic attention from the business community than the movement of goods.
As we show, people crossing borders create vast global networks that already drive innovation and growth in both destination countries and origin countries. Yet these networks remain comparatively small in size. As a result, the latent potential to drive shared economic value and create a more balanced world based on human values remains unfulfilled.
The world needs a new engine of growth and geopolitical stability more than ever. We think it’s time to elevate the potential of people crossing borders and to explore fresh ways for governments and business to work together for the benefit of all.
https://www.bcg.com/publications/2021/how-global-migration-drives-innovation
Community
Abiodun declares state of emergency on flooded Isheri community
…assures residents of permanent solution after comprehensive assessment
Ogun State Governor, Prince Dapo Abiodun, on Monday declared state of emergency on the flooded Isheri community, in Ifo Local Government Area of the State, as he assured residents of the area quick intervention to save the situation.
The governor added that a comprehensive assessment that would lead to permanent solution to the menace of flooding in the affected area would be conducted very soon.
Prince Abiodun, who stated this while fielding questions from newsmen after inspecting the flooded community, said that his administration is working with the federal government to deal with the situation as an emergency case.
He noted that the time has come to find a lasting solution to the perennial flooding to make the area morw conducive for living.
According to him, the state government will see to the elevation of some roads in the area as parts of the solutions to the problem.
The govenor said: “We will prioritize the works here because I am touched with what I have seen. I will ensure that we immediately begin to see signs of relief as we are stepping this up. The Minister of State for Environment is already aware. The Vice President is already aware and also the president. It will be dealt with as an emergency and we are taking it as such.
“As an emergency, I will like to take it up myself. Please continue to bear with us as we are going to conduct a comprehensive assessment of what we need to do to make this place conducive for living.
“Whatever that assessment comes up with is what we are going to implement. So, we are going to first start with ensuring that we have the required road infrastructure at the appropriate levels.
“So if you now built in such a way that we need to relocate you, we have to do that. Whatever it is that we must do to ensure that place does not persistently experience flood, we will do it. But let us wait for the result of the studies to come back and then we will begin to take that decision as and when the situation arises.”
Addressing residents of Riverview Estate, Governor Abiodun said he has requested for an area survey of the entire estate to identify critical areas that needed immediately intervention.
He assured that the intervention would come through the construction of an elevated road with adequate drainages to mitigate their suffering.
“I want to assure you today, knowing fully well that we are a promise keeping administration, we do not say what we do not mean, my heart goes out to you, it is very unfortunate, I am giving my commitment today, the commissioner for works will come and see what needs to be done.
“We have also engage the Minister of State for the Environment, who fortunately, is from Ogun State and I have already brought this to his attention.
“Before the end of the week, I will also table it before the Vice President and the President as well so that we ensure that this problem gets all the desired attention and consequently gets the desired solution so we can bring this to an end,” he said.
The governor also disclosed that he and the Minister of Water Resources would visit the community in few days time.
“We will also discuss the issue of the Ogun-Osun River Basin Authority and try and interrogate the activities there and understand how their activities affect this community and other communities with respect to the opening and closing of the dam,” he said.
The governor described the environment around the Kara cattle market as an eyesore and not befitting the dreams of a “new Ogun State”.
He said that the market was not conducive for human living and not in tandem with the Sustainable Development Goals and waste disposal.
He, however, acknowledged the area as one of the biggest commercial operation that provide services to a large number of people, even as he assured that government would go into a satisfactory agreement with the market men and women after which a comprehensive beautification of the area would take place.
The Chairman, Riverview Estate, Abayomi Akande, in his remarks, intimated the governor of the suffering residents of the area are going through as a result of the flooding.
He said that there is a need for a panel of inquiry into the operations of Oyan Dam to stop incessant release of water to cause havoc in the State
He applauded the governor for sending miscreants packing from the road, saying residents of the axis have suffered robbery attacks and other criminalities for quite awhile.
Akande urged the state government to think of converting the area into a Government Residential Area (GRA) through Public Private Partnership arrangement to fast track its development.
Features
MediaTek, Airtel Nigeria intensify collaborative efforts to bolster mobile connectivity in Nigeria
Lagos, Nigeria – October 12, 2023 – MediaTek, a global leader in semiconductor industry together with Airtel Nigeria, a leading telecommunications service provider, briefed the local media on Thursday on their collaborative efforts, to drive technological advancements and improve mobile connectivity across the nation.
The collaboration introduces MediaTek’s T750-powered Customer Premises Equipment (CPE), a groundbreaking technology that enhances internet connectivity. This advancement allows users to access high-speed 5G networks from the comfort of their homes, opening doors to remote work, gaming, online education, and entertainment streaming like never before.
Speaking during the session, Rami Osman, Director for Corporate Sales and Marketing at MediaTek, Middle East Africa, highlighted MediaTek’s commitment towards expanding its footprint across the Smartphone and Smart Device ecosystem in the Middle East & Africa (MEA) region.
“MediaTek is at the forefront of the global semiconductor industry, and we are proud to lead the way in key sectors like Smartphones, 5G Fixed Wireless Access, Wi-Fi, TV, and AI-IoT. In Nigeria, our collaboration with Airtel Nigeria, revolves around three core areas of focus. In connectivity, we are enhancing high-speed internet access with our advanced chipsets.”
“In the Smartphone domain, we are committed to offering a wider range of premium and flagship devices while supporting the transition from feature phones to smartphones. In the realm of AI-IoT, we are exploring new possibilities and technologies. Thus, this will promote digital inclusion, revolutionize connectivity in Nigeria, and contribute to sustainable development goals,” said Osman.
In addition, he said, “This collaboration aligns seamlessly with our MEA agenda, laying a robust foundation for the future of 5G technology. As we move forward, we are excited to lead in technological progress within this continually evolving region.”
Ismail Olusegun Adeshina, Director, Marketing at Airtel Nigeria, emphasized the importance of the partnership with MediaTek and how it will provide affordable connectivity to Nigerians. He stated, “Our commitment to innovation is evident through our early adoption of 5G technology. We’re proactively investing in this technology to improve connectivity, to tackle coverage and cost challenges, and make 5G devices more accessible across Nigeria”.
MediaTek powers globally recognized brands and remains dedicated to providing state-of-the-art innovations through its latest products and solutions. These offerings span a diverse range, including smartphones, smart devices, automotive technology, satellite connectivity solutions, and next-generation wearables.
MediaTek’s product portfolio includes MediaTek Dimensity for 5G smartphones, MediaTek HelioG series for 4G gaming smartphones, MediaTek Kompanio for arm-based Chromebooks, MediaTek Pentonic for Smart TV technologies, MediaTek Genio for Internet of Things applications, MediaTek Filogic for advanced Wi-Fi 6/6E & Wi-Fi 7 solutions, and MediaTek Dimensity Auto for cutting-edge automotive technologies, among others.
For more information, please visit: https://www.mediatek.com/
The award-winning Bigi Carbonated Soft Drink brand, a product of Rite Foods Limited, is delighted to unveil her highly-anticipated fourth edition of its “Bigi Watch and Win” promo. Designed exclusively for movie enthusiasts in Lagos and Abuja, this exciting promo offers participants the opportunity to watch their favourite movies and win fantastic prizes.
From September 18, 2023, to November 18, 2023, movie goers can enjoy any film of their choice at Silverbird Cinemas and receive a raffle ticket. These tickets can be redeemed for a chance to win incredible prizes, including laptops, Bigi products, printers, perfumes, and more. The grand prize for this edition is a brand-new car.
The first edition of “Bigi Watch and Win” took place in 2021, and later that same year in December, the Bigi brand held another edition. Since then, it has become an annual tradition, demonstrating Rite Foods Limited’s commitment to rewarding brand loyalty among its valued consumers.
Ms. Biola Aransiola, Assistant Brand Manager for Bigi, expressed her excitement about the fourth edition of the promo, saying, “We’ve partnered with Silverbird Cinemas to enhance people’s movie-going experience. Movie lovers can enjoy any of our 13 Bigi Carbonated Soft Drink flavours while watching their favourite films and stand a chance to win amazing prizes.”
Ms. Aransiola also mentioned that her favourite part is witnessing participants’ reactions when they discover the incredible prizes they have won, particularly the grand prize—a brand-new car. She encourages potential participants to check @getbigi on all social media platforms for the terms and conditions.
Through the “Watch & Win” promo, the Bigi brand accentuates Rite Foods Limited’s dedication to supporting the entertainment industry. The brand continues to sponsor movie premieres, as it has in the past with movies such as “The Prophetess,” “Progressive Tailors Club,” and “Aki and Pawpaw.” Additionally, it has been a consistent sponsor of the popular talent discovery platform, Nigerian Idol, for three consecutive seasons (6, 7, & 8), helping aspiring Nigerian singers achieve their dreams of stardom in the music industry.
The “Watch & Win” promo, combined with other effective marketing initiatives, has earned the Bigi brand numerous awards within its market segment. In 2023, Bigi Cola was honored with the “Best Value for Money” award at the BrandXchange Consumers Value Awards. In 2022, it received the “Fastest Growing Cola Brand of the Year” award at the Marketing Edge Brands and Advertising Excellence Awards in Lagos. The Bigi brand also claimed the “Most Outstanding CSD Brand of the Year” award at the 2021 Brandcom Awards, solidifying its position as a market leader in the beverage industry, outperforming its competitors.
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