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Platform Economy Of The Future, Pathway To Drive Growth, Jobs Across Africa



William Mzimba, Chief Executive of Accenture South Africa and Chairman of Accenture Africa

By William Mzimba

Many companies, whether they realize it or not, have already taken steps to embed themselves into the digital ecosystems that will drive their growth in future.

However, the pace of adopting new digital platforms for doing business needs to increase – especially in Africa. These platforms are business models that create value by facilitating exchanges between two or more interdependent groups, usually consumers and producers.

According to the Wall Street Journal platform companies are major drivers of innovation as the top companies set the standards for the digital transformation taking place around the world. Traditional companies are challenged to keep up or risk being left behind. As platforms become the new normal for how business is done, African companies must seize this opportunity to begin to build a new digital value chain.

Already, more than a quarter (27%) of the executives Accenture recently surveyed report that digital ecosystems are transforming the way their organizations deliver value. And we found that 81% of executives say platform-based business models will be core to their growth strategy within three years.

The mandate for leaders is to capitalize on new relationships, building a network of digital partners that will not only enhance their existing business, but also allow them to forge their way into newly emerging digital ecosystems.

What we are seeing is that entire ecosystems of customers are aggregating around several new digital platforms, and businesses are more motivated than ever before to take advantage of these entry points.

Communication platforms like WeChat and WhatsApp, and Artificial Intelligence intermediaries like the Google Assistant, Alexa, and Siri represent distinct ecosystems delivering unprecedented access to customers – and businesses are flocking to them.

A couple of examples include Hyatt Hotels, which uses Facebook Messenger to let guests do everything from booking and checking existing reservations to ordering room service during a stay, while Capital One bank developed a ‘skill’ for Amazon Echo’s Alexa, allowing people to check their accounts and pay credit card bills via the Echo device.

It is little surprise that the trend two of our Tech Vision 2017 study highlights that in the State of the Cloud survey 95% of respondents reported using public, private, or hybrid cloud technology, while the CIO Strategic Partner Index run by the IDC reports that 29% of IT leaders are spending more than half their IT budget on external providers. Each platform commitment means easier future engagement with other companies on the platform using the same infrastructure.

However, of the 176 platform companies included in a recent report, The Rise of the Platform Enterprise: A Global Survey led by Peter Evans and Annabelle Gawer and sponsored by the Center for Global Enterprise, Asia has the largest number with 82, 64 of which are in China. North America has 64, with 63 in the US.

Europe is a major consumer of platform services, but it’s home to relatively few platform companies –27 spread across 10 countries, 9 of which are in the UK.

It is concerning Africa and Latin America have a number of small platform companies, only 3 of which have met the $1 billion valuation threshold for inclusion in the survey.

More African companies need to decide which ecosystems to join and which roles to play as the technology changes are only the beginning.

How do African companies begin to close the gaps? An important way to get moving on this journey is to conduct an audit identifying how many internal and external platforms you are using and the goals for their use. Identify and address unnecessary overlaps.

Determine the platforms your organization most relies on, as well as those that most depend on you. These are the ecosystems where your organization should hold its strategic and market strengths.

Over the next 100 days, look to essentially develop a comprehensive strategy to establish the foundation for your platform business model and ecosystem.

During this phase you should appoint a C-suite sponsor to oversee a team that is responsible for championing your new ecosystem and digital partnership strategies.

Then ever the next year, leadership should have achieved comprehensive understanding of the new rules of business, developed a platform business model strategy, and started to test it with the launch of a small pilot program.

Companies should keep expanding the conversation: for instance, in the first 100 days have a strategy summit with your closest partners to understand their goals for the future. Uncover shared goals and commit to developing a strategic plan for achieving them together.

Consider your organization’s future through the lens of the biggest disruptions shaping your market, from inside and outside your industry.

Craft the ideal role of your company in this future, and develop a shortlist of partners who can help make it a reality. And remember to develop metrics to quantify the results of ecosystem participation.

Many global brands are already taking the bold steps needed. The digital ecosystem is, for instance, totally redefining what automakers do. Rather than just building cars, they’re engaging with customers throughout the vehicle lifecycle, directly managing software upgrades, diagnostics, and safety.

In the insurance industry, pulling down driving data from connected car platforms has enabled new services such as pay-per-mile insurance with newcomers like Google and Metromile to challenge the industry status quo. The opportunities are endless, no matter what industry you are in.

General Motors kicked off 2016 with a $500 million investment into ride-share platform Lyft. The move gave GM the inroads to launch their Express Drive service, an exclusive offering for successful, but car-less, Lyft driver applicants to rent a car directly from GM and get to work right away.

The program was remarkably successful in the short term, opening a new line of business for GM: by July, 30% of new Lyft drivers were requesting an Express Drive vehicle in their sign-up.

In addition to partnering with Lyft, GM also made a $1 billion-plus acquisition of the autonomous vehicle software company Cruise Automation, and another billion-dollar investment in building an autonomous vehicle testing facility in Detroit.

This shows how platforms are rapidly becoming the central hubs for the rich and complex digital ecosystems that companies want to access. Consider the fact that 70% of ’unicorn’ startups (over $1 billion!) are platform companies.

Other companies such as personal car-rental app Turo and group dining experience Feastly have introduced their own offerings, as have dozens of start-ups, each with their own angle and offering. LiquidSpace, which lists offerings in more than 500 cities across the US, Australia and Canada, offers a platform for renting workspaces and meeting rooms by the day or hour.

In South Africa, a good example of a company embracing the platform economy and reaping rewards is Discovery Vitality, while Discovery’s proposed bank is another example of the evolution of this concept into other exciting sectors.

The retail market for consumer goods in SA received a shot in the arm in 2015 when Kalahari was merged with Takealot, with the technology platform cleverly harnessed to drive growth since then.

Remember the sharing economy brings people together through technology to exchange or rent access to goods and services, so entrepreneurs are building this economy by leveraging emerging digital technologies to meet customer needs in new and disruptive ways.

Digital and mobile technologies have combined with public support to create a host of opportunities to transform the way government manages the infrastructure it has already acquired. For instance, through MuniRent, six local governments in Michigan are already renting equipment to and from each other.

How African companies and governments react to this change brought about the platform economy will define their prospects going forward.

The platforms they use will serve as the pathways to the new digital economies that will drive growth and jobs across the continent. They will form the pillars of entire value chains in the future and so African companies need to ensure they make these decisions wisely – and fast because there is no doubt that the digital partnerships African companies make today will determine how successful they will be tomorrow.

Platform economy is one of the topics to be discussed at the Accenture Innovation Conference taking place on 17 October in Johannesburg.

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Vodacom Trains the Next Generation on Internet of Things



L-R: Olumide Idowu, Senior Manager, Customer Support Operation Centre, Vodacom; Iwalehin Oluwakemi and Azubile Godwin both Teachers from SS. Peter and Paul Nursery and Primary School; Abu Etu, Senior Manager: Product Portfolio, Vodacom Business Nigeria with pupils from SS. Peter and Paul Nursery and Primary School, Ikate Elegushi, Lekki Lagos during a one day Information and Communication Technology Field Trip to Vodacom Facility in Lagos recently..

In order to further technological development in the education sector and among the next generation, Vodacom Business Nigeria has organised a robotics training session for thirty-six young students from the S.S. Peter & Paul Nursery and Primary School.

Loving Gaze, an independent non-profit organisation that serves the underprivileged communities in Lagos State, runs the school.

The young students, aged between 8 and 10, through a practical course on robotics, were given the opportunity to learn about the integration of the Internet of things (IoT) in robotics and its growing relevance in various areas of modern life.

The students were taught how to build, program and control robots, drones and other artificial intelligence.

This demonstrated the essential nature of technology in various aspects of everyday life, including securing lives and property. As a practical demonstration of this, students were shown how drones could be used for a wide range of services in today’s world.

This includes the delivery of medication and lifesaving supplies to remote locations in emergency situations, which is already happening in some locations around the world.

They were also given a tour of the company’s facilities, exposing them to the importance of connectivity and telecommunications technology in today’s digital world.

Abu Etu, Senior Manager: Product Portfolio, Vodacom Business Nigeria said, “ As part of our commitment to empower the next generation in Nigeria through ICT, Vodacom believes that it is important to promote training for students at the primary level of education.

This will prepare them from the early stages of their lives for the post – digital age which will demand technical knowledge and skills”.

The General Manager of Loving Gaze, Barbara Pepoli, said; “We are excited that our students had the opportunity to learn new things beyond the walls of the classroom.

Getting children interested in technology has been very important for our school and this field trip is a great way to make technology come to life for our students”.

Vodacom Business Nigeria constantly uses industrial tours and field trips to educate students from primary, secondary and tertiary schools on new telecommunications technologies that are driving the economy.

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Opeke Highlights Data Centre Hosting, Cloud investment @ TMT Finance Africa



Funke Opeke, Chief Executive Officer of MainOne, has highlighted the opportunity for increased investment in shared fiber network infrastructure and data center and cloud computing infrastructure in Africa. This, she said was key to further unlocking the gains in the digital transformation of the continent.

She spoke at the 2018 TMT Finance Africa Conference, a forum driving investment for telecoms, media and technology sector across Africa, held in Cape Town, South Africa last week.

Ms. Opeke joined panelists from DLA Piper, Teraco, PAIX and Rack Center to discuss the need for continued investment and growth within the telecom sector and data center market in order to realize the vision for increased ICT adoption in Africa.

She highlighted that MainOne, through its subsidiary, MDXi Data Centre has recently invested an additional N12billion in its Lekki data centre in order to grow its capacity from 300 to 600 racks as the leading data centre in West Africa.

She stated that this investment is a part of MainOne’s plan to invest additional $300 million to enhance communication infrastructure across West Africa over ten years.

“MainOne intends to remain at the forefront of the broadband initiative in West Africa with investments in fiber infrastructure and data centres across the region to advance broadband activities.

In 8 years, we have established a reputation as the preferred provider of connectivity and data center services to West African businesses and have facilitated global content providers seeking direct access to subscribers on the sub-continent.

The company has continued to extend its network reach and is currently providing services in eight West African countries including Nigeria and Ghana,” she added.

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After Konga, Owners Mull Sale of Jumia



There are plans to sell Africa’s leading e-commerce firm, Jumia, owned by Rocket Internet, a German start-up investor.


The move is coming as Zinox Group, an integrated Information Communication Technology (ICT) solutions conglomerate and Original Equipment Manufacturer (OEM), recently acquired Konga, e-commerce giant.


Reports,  yesterday, suggested that Rocket Internet, is also considering listing Jumia either in Frankfurt or London stock exchange.


This is expected to take place this or next year, but according to Reuters, Rocket Internet is expected to “shortly mandate banks for an initial public offering of Jumia.”


Rocket Internet helped set up Jumia in 2012, but the firm has been operating with loss for years despite conquering the market space.


But the owners are seeking a way out from the consumer electronics and fashion retailer, in line with its strategy of selling or listing established internet firms.


Reuters said Berenberg, which has a track record of working with Rocket on capital market transactions, is seen to be in a good position to win a mandate, the people said.


A listing of shares, in a volume of under €200 million ($245.7 million) is expected to be floated, but no information on Jumia’s valuation was immediately available.

Last year, Rocket Internet floated online food groups, Delivery Hero and HelloFresh, while the investor is currently also preparing a flotation of its online furniture retailer Home24.


1.2 billion consumers and 15 million small and medium-sized firms. It also features services such as an online hotel booking and a food delivery platform.


Jumia said in January that it had 1 billion visits on its pages across Africa in 2017. It has 50,000 merchants in its ecosystem, where five million products, hotels, restaurants and other services are listed.


According to a presentation from Rocket Internet, Jumia saw its adjusted loss before interest, tax, depreciation and amortization widen to €80.7 million in the first nine months of 2017. Revenues edged up to €57.3 million.

Only recently, Zinox Group acquired Konga in a move that is expected to raise the profile of e-commerce in Nigeria.


The acquisition has been viewed by industry watchers as a major development that could see e-commerce in Nigeria finally unlock the massive revenue potential in the global multi-billion-dollar industry.




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