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eCommerce and the Nigerian Amazon

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For long muted on Wall Street, the signal is now clear.

Amazon, global e-commerce giant, is on the verge of not only overtaking Apple as the world’s most valuable company but the first company worldwide to hit the $1 trillion mark.

 

Bullish projections indicate that this could happen in late August 2018 if Amazon’s stock, which has surged 83 percent over the past one year, continues its impressive revenue growth.

 

Aided by an astronomical increase in online shopping and growing patronage of cloud computing by businesses, an area in which Amazon Web Services dominates, Amazon has continued a remarkable run which saw it dislodge Microsoft Corp. as the No. 3 U.S. company by market capitalization in February 2018.

 

A few analysts have, however, attempted to douse the enthusiasm, citing the fact that stock gains are not a reliable predictor of future performance and also in view of the fact that Amazon’s recent streak has been quite outstanding.

 

For these, the expectation is that Amazon’s stock will rise 10 percent within the next year to reach $1,700, which would give it a market value of $823 billion.

 

Furthermore, data from Thomson Reuters shows that Apple’s stock price will expectedly rise 11 percent and reach $195 within the next 12 months, which would put its market capitalization at $989 billion, keeping it just ahead of Amazon.

 

The overwhelming view though remains: should Amazon’s stock keep up the exceptional growth trajectory seen over the past year, the company’s market capitalization would hit $1 trillion in late August while Apple would reach $1 trillion around a week later if its stock price continued to rise at the same pace seen over the past year.

 

There is no denying the fact that Jeff Bezos, founder and owner of Amazon, has shown the world just how far ecommerce and a disruptive approach can go in leading a business to record-shattering heights.

 

To a smaller extent, a certain Jack Ma who failed repeatedly in school and now the brains behind Alibaba, another e-commerce giant making waves in Asia, has also shown what can happen when e-commerce meets opportunity and a conducive/supportive business environment.

 

To put Amazon’s mind-blowing strides into sharp relief, it is worth considering a few facts.

 

Nigeria’s 2018 fiscal budget, which was recently passed by the National Assembly is about N9.1 trillion. This figure, which covers the country’s entire spending for the year, is just about $25b – a paltry 2.5 percent of Amazon’s projected $1 trillion worth.

 

Also worth considering is the identity of the first five most valuable companies in the world.

 

Of all the most similar attributes displayed, one thing binds Apple, Amazon, Microsoft, Alphabet (Google) and Facebook: they are first and foremost technology companies, all of whom, as described by Forbes in its recent valuation, have successfully consolidated their power in recent years by leveraging cutting-edge technology, driving huge profits and soaring market values.

 

There is indeed no doubting the power of technology as a leveler and game-changer. Technology can produce power-houses, global conglomerates with market capitalization figures that can make the annual budget of several nations pale into insignificance.

 

What has remained perplexing is the inability or refusal of the Nigerian government to see/appreciate the power of technology as perhaps the country’s best chance of closing the ever-widening gap between it and the advanced countries of the world.

 

Why is there hardly any meaningful form of government support for tech start-ups and other players in Nigeria’s technology sector?

 

Entrepreneurship in Nigeria is not a task for the faint-hearted.

The Nigerian business terrain/economy, blessed as it is with an overwhelmingly youthful population and the potential to catapult a business overnight sadly, still remains a very tough and challenging one. Start-ups here face a herculean fight staying afloat.

 

A recent survey showed that over 70% of start-ups in Nigeria go down under before reaching their fourth anniversary. Many of these go unannounced due to the stigma associated with failure in these parts. Indeed, one of the biggest fears of an entrepreneur in Nigeria is the fear of failure.

 

This is opposed to the case in advanced climes where business failure is treated as a cathartic process, one that is chronicled and encouraged as a learning curve for the person involved and others.

It is worse when you are a start-up entrepreneur in Nigeria’s technology sector, an industry in which the government has so far shown little more than a passing interest in and no demonstrable commitment; a battle of attrition for many.

 

It is a conundrum that has defied all forms of rigorous introspection, especially considering the seeming willingness of the government to commit sizeable funding and support to agriculture.

 

Perhaps, we are better reminded that we live in the 21st Century, one in which knowledge has become a right; where new technologies such as Robotics, Artificial Intelligence, Big Data and Machine Learning, among others, is redefining the scope of work, business and human engagement; where electric, driver-less or flying cars could soon see fossil-fueled ones become an anachronistic relic; where the power of technology and industrialization has made China, once derided as a paper tiger, a major world power giving the United States of America a good run for its money and where technology has transformed the four (actual) Asian Tigers of Hong Kong, Singapore, South Korea and Taiwan to global hubs of innovation and manufacturing excellence.

 

Today, Amazon has created jobs for over half a million people in America – a figure that is still rising. And in recognition of the company’s contribution to the United States’ economy, the e-commerce giant paid zero federal taxes in 2017. It is also being rewarded with further tax breaks at the state and local level.

 

How many potential Amazons would emerge from the Nigerian tech sector, should the Nigerian government toe the path its United States’ counterpart did with Amazon? Possibly enough to place our technology narrative and Nigerian tech companies/start-ups on the path of global reckoning.

Mr. Leo-Stan Ekeh, chairman of Zinox GroupLeo Stan Ekeh

Here in Nigeria, the country can boast of Leo Stan Ekeh, founder and Chairman of the Zinox Group – a technology conglomerate that has empowered thousands of Nigerians and through which he has created direct and indirect employment opportunities for millions – the closest entrepreneur in Jeff Bezos’ terms in these parts. It is instructive to note that he has also remained true to his chosen field of technology in spite of the considerable lure of quicker returns or existence of more institutional support in other sectors such as banking and the once-mighty oil/gas industry.

 

In Konga, one of Nigeria’s most prominent e-commerce pioneers which Ekeh acquired from erstwhile investors Naspers and AB Kinetic and which recently merged forces with another bold entrant Yudala, the country can also count on a business that has clear designs on improving the lot of Nigerians through a suite of creative avenues and expansionary moves.

 

One of these is a well-publicized impressive retail roll-out plan which is bound to see Konga establish a presence in Nigeria’s 774 local governments, a cost-intensive feat that will create tons of employment opportunities for residents in these various locations.

 

Renowned for its uncompromising stance on quality, a tradition that Yudala, which it merged it, was well-known for; the new Konga that emerged in May 2018 is now widely recognized as the best source for genuine products in Nigeria’s e-commerce space – a burden that has also reportedly seen the owners of the business invest in massive warehouses nationwide to enable it scale inventory/stocking, another investment that is bound to throw up additional jobs for Nigeria’s teeming unemployed youths.

 

But can an Ekeh, for instance, count on the government for tax breaks, tax holidays or any other form of incentives to encourage him to do more?

 

Your guess is as good as mine…

 

 


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Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

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Confronting the Google Monolith: Survival Strategies for Online Businesses

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By Reuben Kalu.

In the vast expanse of the digital realm, Google looms large, an omnipresent force shaping the way we navigate, search, and conduct business online.

From its humble beginnings as a search engine to its current status as a multifaceted tech behemoth, Google has entrenched itself deeply into the fabric of the internet.

Its influence is undeniable, its reach unparalleled, and its ubiquity seemingly inescapable. But can you truly run an online business without Google?

The answer, in today’s digital landscape, is a resounding no. You have no choice.

Google’s dominance extends across multiple facets of the online world, making it virtually impossible for businesses to thrive without engaging with its ecosystem.

From search engine optimization (SEO) to online advertising, email services to analytics, Google’s suite of products and services permeates every aspect of the online business landscape.

Attempting to operate without Google is akin to swimming against a relentless tide, fighting an uphill battle fraught with obstacles and limitations.

At the heart of Google’s influence lies its search engine, the gateway through which billions of internet users navigate the vast expanse of online content. .

Google’s search algorithms wield immense power, determining which websites rank prominently in search results and which languish in obscurity.

For businesses seeking to attract organic traffic and expand their online presence, optimizing for Google’s search algorithms is not merely advisable—it’s imperative.

But Google’s influence extends far beyond search. Consider Google Ads, the company’s advertising platform that enables businesses to reach targeted audiences through paid search, display, and video advertising.

With billions of searches conducted on Google each day, Google Ads provides unparalleled reach and visibility, allowing businesses to target potential customers with pinpoint accuracy.

Attempting to compete in the online advertising arena without leveraging Google Ads is akin to entering a battle unarmed—a futile endeavor destined for failure.

 

Moreover, Google’s suite of productivity tools, including Gmail, Google Drive, and Google Workspace, has become indispensable for businesses seeking to streamline their operations and enhance collaboration.

With seamless integration across devices and platforms, Google’s productivity tools offer unparalleled convenience and efficiency, empowering businesses to work smarter, not harder.

Attempting to eschew Google’s productivity suite in favor of alternative solutions is not only impractical but also unwise, depriving businesses of the tools they need to succeed in today’s fast-paced digital landscape.

Furthermore, Google Analytics stands as the gold standard for web analytics, providing businesses with invaluable insights into their online performance and audience behavior.

From tracking website traffic and user engagement to analyzing conversion metrics and customer demographics, Google Analytics offers a comprehensive toolkit for optimizing online marketing strategies and driving business growth.

Attempting to gauge online performance without leveraging Google Analytics is akin to flying blind, devoid of the critical data needed to make informed decisions and drive meaningful results.

But perhaps the most formidable aspect of Google’s influence lies in its role as a gatekeeper of information and access.

With billions of users relying on Google’s platforms and services each day, the company wields immense control over the flow of online traffic and the dissemination of information.

For businesses seeking to connect with customers and expand their reach, Google’s dominance presents both a tremendous opportunity and a formidable challenge.

Attempting to circumvent Google’s influence and establish an online presence independent of its ecosystem is a Herculean task, fraught with uncertainty and risk.

In essence, attempting to run an online business without engaging with Google is akin to swimming against a relentless tide, fighting an uphill battle fraught with obstacles and limitations.

While alternative platforms and solutions exist, none possess the ubiquity, reach, and influence of Google’s ecosystem.

To thrive in today’s digital landscape, businesses must embrace Google’s dominance and leverage its suite of products and services to their advantage. You have no choice.

In conclusion, Google’s pervasive influence permeates every aspect of the online business landscape, making it virtually impossible to escape its grasp.

From search engine optimization to online advertising, productivity tools to web analytics, Google’s ecosystem encompasses a vast array of products and services that have become indispensable for businesses seeking to succeed in the digital age.

While alternative solutions may exist, none possess the ubiquity, reach, and influence of Google’s ecosystem.

To thrive in today’s digital landscape, businesses must embrace Google’s dominance and leverage its suite of products and services to their advantage.

You have no choice.


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Hydrogen Hosts Catalyst Workshop, Highlights Resilient Business Models for Fintech Startups

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As part of its mission to empower African businesses with tools needed to thrive, garner admiration, and foster global acclaim, leading payment solution company, Hydrogen Payment Services Company Limited (Hydrogen), recently partnered with the Co Creation Hub (CcHub), to host the latest edition of the Catalyst workshop in Lagos.

The discourse addressed the potential risks and opportunities for startups and saw experts advise participants on the need to develop resilient business models that would scale across different economic climes.

Moderated by Miracle Ezechi, Digital Marketing Manager, Hydrogen, the panel session addressed dominant issues about the theme: ‘Adapting Fintech Business Models to Economic Climes: Flexibility, Agility and Customer-centricity’.

Mr. Emeka Awagu, Chief Technology Officer, Hydrogen, who spoke as a panellist, addressed the issue of customer-centricity, which according to him, is key to Fintech growth.

He advised startups to listen to customer demands and understand their needs in order to develop the right solutions that will lead to long term market viability.

“Innovation is key for startup growth. However, understanding customers’ needs and change in behaviour will help any startup to innovate better.

“Startups must be flexible and agile to develop solutions with high interoperability and processing speed, and they must be ready to learn from startups that have failed,” Awagu said.

With an estimated 61.07 percent of startups failing, the participants stressed the need for prudence.

“Statistically, a staggering number of startups fail, often due to financial mismanagement. Hence, founders must prioritise understanding and maintaining a healthy the Cost-to-Earnings ratio.

“It is not just a number, but a pivotal indicator of a company’s financial health as well as being a key attractiveness determinant for investors,” Awagu added.

On his part, Ina Alogwu, the Group Director, Digital Transformation, ARM HOLDCO, who also spoke as a panellist at the session, stressed the need for startups to develop sustainable products and solutions that will help them remain competitive in an environment that is faced with harsh economic realities.

“Many startup businesses fail within their first five years, however upcoming startups should not be discouraged, rather develop a culture that will encourage them to understand the reasons for failure and learn from mistakes.

“Startups should not be too rigid with their solutions and should be ready to accept changes that will drive innovation,” Alogwu stated.

Hydrogen will be deepening its economic impact series with a webinar planned for Thursday, April 25, even as businesses across Africa continue to face an array of challenges, ranging from inflation and currency fluctuations to rising operating costs.

Themed ‘Navigating Economic Challenges: Strategies for Sustainable Growth,’ the webinar will delve into key areas critical for businesses to not only survive but thrive in the face of economic adversity. Register using this link – https://bit.ly/Hydrogenwebinar.

Esteemed panellists for this event include Taofik Odukoya, CEO, Vanguard Pharmacy, and Okechukwu Odimgbe, Chief Financial Officer, Hydrogen. The session will be moderated by Nnenna Sam-Obioha, Ecosystem Orchestrator, Hydrogen.

 


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Dexude Secures Funding to Revolutionize Education in Nigeria, Beyond

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Dexude, a leading edtech platform with operations in Nigeria, has announced that it has been awarded the prestigious Business Finland TEMPO funding.

Dexude Secures Funding to Revolutionize Education in Nigeria, Beyond

Charles Emembolu, founder of Dexude,

This significant funding injection marks a pivotal moment in Dexude’s journey towards transforming education through its AI-powered, live-first, expert-led, and community-driven platform.

The Business Finland TEMPO funding is specifically designed to support startups and SMEs aiming for international growth by building their expertise and solutions into international success stories in innovative ways.

Dexude’s commitment to innovation, coupled with its vision to enable a billion learners worldwide, aligns perfectly with the objectives of the TEMPO funding.

Commenting on this milestone achievement, Charles Emembolu, founder of Dexude, remarked, “We are incredibly honored and excited to receive the Business Finland TEMPO funding. This funding is not only a validation of Dexude’s mission to reinvent education but also a testament to the hard work and dedication of our team. With this support, we are poised to accelerate our efforts in democratizing access to quality education and empowering learners across Nigeria and beyond.”

L-r; Kelvin Chikezie, co-founder of Dexude; Kashifu Inuwa Abdullahi, Director-General/CEO of the National Information Technology Development Agency (NITDA); and Charles Emembolu, founder of Dexude

Kelvin Chikezie, co-founder of Dexude, added, “Securing the Business Finland TEMPO funding is a significant milestone for Dexude. It underscores our commitment to leveraging technology and innovation to revolutionize the way people learn and grow. We are grateful to Business Finland for believing in our vision, and we are excited to embark on this next chapter of Dexude’s journey.”

Dexude is on a mission to redefine education by providing learners with access to influential experts and thought leaders, live interactions, and a vibrant community-driven learning experience.

Through its platform, Dexude aims to break down barriers to learning and empower individuals to pursue their passions and unlock their full potential.

 

 

 

 


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