How Family-Owned Businesses Is Driving Global Economic Success-Halima Dangote

Group Executive Director of Dangote Industries Limited, Halima Aliko-Dangote, has said that Family-owned businesses (FOBs) can continue to drive economic success, create value for shareholders, and positively impact their communities worldwide by staying true to their core values and adopting strategic practices that prioritize long-term growth, efficiency, and resilience.

She spoke at the Forbes Global CEO Conference in Bangkok, Thailand.

Halima, who is also the Executive Director, Family Office, during the panel session on Family Business: Looking at the Next Frontier, opined that family-owned businesses have demonstrated exceptional resilience, navigating challenges and thriving over multiple decades.

Other speakers include Carolyn Choo, Managing Director and CEO of Worldwide Hotels; Rose Damen, Managing Director of Damen Yachting, third-generation family shareholder of Damen Shipyards Group; and Caroline Link, Co-Chairman of B.GRIMM Pharma, President of B. Grimm Joint Venture, and Board Member of B. Grimm Power.

She stated that success in family-owned businesses starts with shared values, goals, governance policies, and alignment adding that reputation is part of Family Capital.

According to her, governance structure, adherence to core values, customer satisfaction, optimization of shareholder value, meritocracy, integrity, leadership, brand equity, diversification/growth, philanthropy, and preserving generational wealth play key roles in the success of our businesses.

She opined that Dangote Group’s governance policies do not allow the board and management to operate in silos as each business unit have at least three independent directors that will give a holistic view.

Speaking on other factors of success for the Dangote Group, Halima emphasized, “We, family-owned businesses, have to stick to our tradition of asset rich-cash moderate or as my father will correct me, asset rich-cash poor.

We as Dangote perpetuate a profitable business with strong values and a strong governance structure.

We make money while building our nation by contributing heavily to the global economy, creating massive jobs, thinking of our great-grandkids, and contributing excessively to humanity.”

Highlighting the significant contribution of FOBs to the global economy, Halima noted that studies by Mckinsey showed that they account for more than 70 percent of global GDP, generate annual turnovers of between $60 trillion and $70 trillion, and provide around 60 percent of global employment.

She stressed the crucial role these businesses play in creating jobs, sustaining communities, and driving development in sectors such as manufacturing, education, healthcare, and infrastructure across the world.

“Family-owned businesses (FOBs) have proven to be resilient, weathering challenges and thriving across multiple decades.

Despite facing external pressures, many FOBs not only survive but also grow, contributing significantly to the global economy in ways that are often underestimated or overlooked,” she said.

She also pointed out that family-owned businesses often employ two key approaches in preparing the next generation for leadership roles: internal and external capacity building.

Regarding internal capacity building, Halima explained that many families create internship programs for young family members interested in taking over the business or assuming leadership positions.

“In Nigeria, we train the next generation so they can grow organically to leadership roles in family businesses. My dad’s approach is for you to start from ground up knowing you will get to leadership role if you work hard and do your job right. These experiences make it easier for you to learn the ropes and be prepared for leadership role in the future,” she said.