Podcast Summary: The Truth About African Entrepreneurship: Why 90% Fail (And How to Be the 10%)

Konnected Minds Podcast with Derrick Abaitey — Guest: Francis Kofigah (CEO, Dolman Foods) Date: October 17, 2025

Main Theme & Purpose

This episode is a deep dive into the realities of African entrepreneurship, focusing on why the vast majority of small businesses fail and sharing actionable lessons and strategies to join the top 10% that succeed. Host Derrick Abaitey interviews Francis Kofigah, CEO of Dolman Foods, who draws from his own journey of dramatic family wealth loss, starting from scratch, navigating partnerships, fundraising, and the importance of mindset, systems, and financial literacy in building resilient African businesses.

Key Discussion Points & Insights

Francis’s Personal Story: From Privilege to Adversity to Entrepreneurship

• Background and Family Loss (03:03 – 07:41)

  • Francis grew up in a wealthy Ghanaian family but suddenly lost everything due to family disputes and betrayal regarding inheritance.
  • The loss forced the family into hardship: “I didn’t know what poverty was before. It was a word in a dictionary. But after going through… say no, not anymore.” (04:18 – Francis)
  • He became proactive to avoid poverty and help others escape it: “Can we make a million people millionaires? That’s where everything started from.” (04:45)

• Early Initiatives and Hustle (10:31 – 13:02)

  • His entrepreneurship started out of necessity while in school, learning graphic design and small trading (phones, design services), mostly self-taught via YouTube.

• First Major Business: Donuts (17:00 – 20:00)

  • The origin of Doman Foods stemmed from helping a lady with a sales bottleneck for her donuts.
  • “What if we partner? You make the donuts, I'll do the selling... That’s the beginning. So we take the donuts, put them in plastic containers, move from shop to shop selling donuts.” (17:54 – Francis)
  • Early business grew informally, with branding emerging organically (“DoMen” became "Doma" as brand name).

Realities of Partnerships in Africa

• Partnerships in Ghana (20:13 – 25:00)

  • Most partnerships are verbal, without written agreements. When money appears, people change.
  • “People change. I've seen it happen too many times.” (24:54 – Francis)
  • Francis’s initial partner (the original donut supplier) wouldn’t expand with him due to loyalty to her own financier—illustrating how relationships and allegiances deeply affect business evolution in Africa.

• Written Agreements vs. Verbal Trust (25:00 – 27:16)

  • Derrick emphasizes: “Put a contract together… It’s a difficult conversation, but have it.” (26:24)
  • Francis: “I didn’t think… anything bad could happen.” (25:26)

• Value of Honoring Early Team (26:35 – 27:25)

  • When unable to pay co-founders (girlfriend, church friend), Francis wrote a promissory note to backdate salaries once investment came. He honored this in full after fundraising.

Fundraising: Attracting and Managing Investment

• How They Raised Their First Funding (27:40 – 30:46)

  • Professionalizing systems after landing a deal with Uber (producing donuts for their March 6th ride promotion), which also attracted investor attention.
  • Key: fast, reliable delivery and adaptability to client specs.

• Business Documentation & Structure (31:03 – 33:20)

  • Investors want to see evidence—inventory, sales ledgers, documented processes: “Most businesses… never write it down… Documents, at least if you have it down, that’s the beginning of the conversation.” (32:10 – Francis)
  • “It’s more of attracting [investment] than chasing.” (33:08 – Francis)

• Accounting, Financial Records, and Storytelling (33:28 – 36:29)

  • Money hasn’t left the economy; it’s just moved, and entrepreneurs must present data-driven cases to attract capital.
  • “What proof do you have that if I put my money here, my money will grow?” (31:03)
  • “Tell the story of your financials, your data… When somebody hears it, it’s music to their ears financially.” (35:21 – Francis)

• Pitfalls of Equity Deals (37:01 – 40:40)

  • Gave away more than 50% of the business in their first investment deal: “Unfortunately, that's the one I had… Ownership of the business changed hands. However, I insisted I still be CEO.” (37:38)
  • Key regret: “If I could go back, maybe I’d do debt and grind my ass off and then pay it off. Equity [can be] dangerous.” (39:16 – Francis)
  • Advice: “If you're starting, work it off. Grind, work hard, do the sales, use debt if you must—not equity.” (40:40)

Mindset, Systems, and Why Most Businesses Fail

• Product-Market Fit & Listening to Customers (50:55 – 52:17)

  • Most African businesses fail because they focus on the product, not market needs, and ignore feedback: “The market will tell you what they want. Most people never listen… We were trained not to hear.” (51:13)
  • Don’t just copy what works elsewhere—adapt for your customer base and context.

• Cash Flow and Financial Illiteracy (52:17 – 55:55)

  • Many entrepreneurs wrongly view margin as profit (e.g., revenue minus expenditure = ‘profit’ to spend, but the real profit is less and must be reinvested).
  • “If you don't know what managing money means… the business won’t last.” (53:45)
  • Recommendation: “Rich Dad Poor Dad” and “Cashflow Quadrant” by Robert Kiyosaki (54:01)

• Role of Mentors (43:15 – 44:16)

  • “Mentors, excellent… Can open doors for you you’d never find in a thousand years. Back then, I didn’t know; some of the grinding, someone could’ve made a phone call.” (43:32 – Francis)

Key Business Lessons & Practical Advice

• Sales & Marketing in Ghana (60:34 – 65:29)

  • “Show, don’t tell”—visual proof and social validation sell better in Ghana than just big talk.
  • Simple tracking of customer data (names, spending) and following up via phone are underutilized but powerful retention tools.
  • Embrace local adaptation of modern tech, especially AI, for marketing automation.

• Discipline Over Motivation (65:29 – 66:21)

  • “Discipline 100%. In order to make money, you need to do the same boring things over and over… You can’t grow anything if you’re not disciplined.” (65:32 – Francis)

• Dealing with Limiting Beliefs & Mysticism (56:09 – 60:34)

  • Many attribute business difficulties to spiritual causes or bad luck.
  • “The deception is woven into our fabric—we think things are mystical.” (56:40 – Francis)
  • Knowledge is the ultimate solution, not supernatural intervention: “God gave you your brain not to just pray for rain, but to think.” (57:47 – Francis)

Memorable Quotes & Moments

• On Partnerships:

  “Agree and sign before the money comes, because when the money comes, people change.”
  — Derrick Abaitey (24:54)

• On Entrepreneurship Realities:

  “If you’ve not been in wealth before… you think there’s no money in Ghana. The money hasn’t gone anywhere—it’s just changed hands.”
  — Francis (33:28)

• On Financial Literacy:

  “Margin means this money, I must turn it around to keep working for me… Most people never grow because of discipline.”
  — Francis (54:17, 66:21)

• On Local Beliefs:

  “You think that God gave you your brain not to think, but for him to rain money on your roof—is an abuse of the mind he gave you.”
  — Francis (57:47)

• On Mindset:

  “If you’re playing life not to lose, you will lose. Most people don’t know the game they are playing.”
  — Francis (55:55)

Timestamps for Important Segments

• 03:03 — Francis’s privileged background and sudden loss
• 13:00 — Early side hustles and skill-building
• 17:00 — Founding the donut business
• 20:35 — Partnership mechanics and the impact of money
• 24:54 — “People change” with money—need for contracts
• 27:40 — How Dolman raised its first funds (Uber partnership)
• 31:03 — Structuring for investment and documentation
• 37:01 — The pitfalls of dilutive equity deals
• 43:24 — Why mentors are essential
• 50:55 — Top reasons Ghanaian businesses fail
• 52:17 — Misunderstanding cash flow and profit
• 60:40 — Three key marketing and sales strategies for Ghana
• 65:29 — Discipline as the entrepreneurial superpower
• 56:40 & 57:47 — The danger of mysticism and limiting beliefs in African business

Book Recommendations

• "Rich Dad Poor Dad" & "Cashflow Quadrant" by Robert Kiyosaki (54:01)
• Daniel Priestley’s works: "Key Person of Influence", "Entrepreneur Revolution", "Oversubscribed", "Scorecard Marketing" (67:19)

Closing Thoughts

Francis urges aspiring entrepreneurs to focus on record-keeping, understanding the local market, and building systems rather than relying on inspiration or copying Western models. Partnership agreements, disciplined operations, and seeking mentorship are repeatedly emphasized as game-changers. Above all, he encourages listeners to “think and do,” not just pray or spiritualize business problems.

“With all the wisdom you have, why would you pay somebody to be richer just to get your shares back? Rather use that money to start something new.” (66:26 – Advice from Francis’s auntie)

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