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E-Business

Konga as e-Commerce Global Game-Changer

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By Ray Umukoro

When global economy pundits describe Africa as the next frontier, they are merely reacting to strong stimulus coming from the continent, especially in the areas of improving agro-economy, commerce, internet penetration and increasing capacity to harness the abundance of raw materials within the continent.

Among these stimuli is e-commerce.

Africa is witnessing quantum leap in internet penetration and increased deployment of internet-enabled handheld mobile devices. This is the fuel driving up e-commerce on the continent once considered a clear outsider in the tech-driven e-commerce ecosystem.

At the cusp of the growing e-commerce market in Africa is Konga, trading under the name konga.com. Since its acquisition in 2018 by Zinox Group, in one of the most discretely executed corporate ‘coups’ and seamless acquisitions on the continent, Konga has continued to beat the odds and confound book-makers.

Within the first two years after its acquisition, Konga had re-invented itself, growing its turnover by over 800 percent, cut inherited serial losses and re-focused its corporate values by being more customer-centric, while deploying superior technology to achieve more. Leveraging light-years-ahead technology, Konga has been able to run lean and mean, delivering last mile in real time ahead of the competition and offering a new threshold of value-for-money in a manner never before witnessed in Nigerian e-commerce bourse.

E-commerce business all over the world comes bundled with several complications. It’s expensive usually with initial huge losses. It’s technology-demanding and requires conscious long-term investment and patience. To ride the tide, operators must work round these treacherous complexities which include heavy investment in back-end technology, innovativeness to adapt to fast-changing consumer tastes and technical paradigm shifts. All of these would require seamless and steady retooling of strategies.

In Africa, e-Commerce is largely the playground of the youths. A huge chunk of the patronage comes from the youths, the nouveau riche, the upwardly mobile, dashing generation of purpose-driven, career-minded men and women who have little time to spare on making physical, in-shop purchases. Konga appeals to this group because its leadership is driven by young men and women who understand the tapestries and nuances of multi-tasking and time-management in the modern era.

Konga’s ownership is truly Africa. This gives it a head-start in the continent’s e-Commerce space. It has been able to combine indigenous manpower with a network of quality foreign technical service providers.  An e-Commerce house is as good as its back-end. Top e-Commerce outposts in the world who have remained at the cutting edge of competition despite the inevitable turbulence share a common denominator.

They are the ones that spend big on infrastructure. Back-end infrastructure and manpower capacity drive the process. Konga understands this and has spared nothing in upscaling its infrastructure and upskilling its staff to global standard. Within the first two years of its acquisition, the investors quietly and deliberately built top-notch nationwide facilities and restructured the firm’s technologies to fit into the new vision and ambition of emerging as a global brand.

On May 1, 2018, barely three months after its acquisition, Zinox merged Konga.com with its omni-channel retail outfit, Yudala. The product of that mega-merger was a swifter, bigger company which retained the brand name, Konga. This was how arguably the biggest e-Commerce and retail company in Africa was born. But beyond that, Konga has continued to astound market watchers with its innovativeness in payment services, delivery to last mile and a steady decline in inherited market churn.

Statistics clearly show that soon after the acquisition, Konga customer churn dropped considerably. Customer churn is the rate at which customers stop doing business with an organisation. It’s the percentage of subscribers who discontinue their subscriptions to a service within a given period.

In the e-Commerce market, customer churn has been a big issue as some customers after experiencing unsavoury transaction with an e-Commerce house, not only discontinue patronage but enlist to share their ugly experience with friends and people in their network (professionals, business associates and partners etc.) and, in the process win them over to also discontinue patronage of that organisation. This has been one of the downsides of some e-Commerce companies: their inability to retain existing customers, let alone grow their customer base.

A couple of factors are responsible for this. Lack of customer satisfaction, late and untimely delivery of goods to clients, foisting substandard products on customers and poor customer care service are among the reasons for customer-hesitancy and eventual withdrawal of patronage.

This is at the root of the poor marketplace performance of many e-Commerce outposts. The new owners of Konga have overcome these drawbacks, using high-end technologies, leveraging on their affiliations with global original equipment manufacturers (OEMs) and clear understanding of the Nigerian environment.

A handy advantage of the new Konga is the combination of the online e-commerce strength of Konga.com and the nationwide branch network of Yudala. This has helped them to deliver a truly omni-channel retail for the first time in Africa.

The heavy behind-the-scene investment in infrastructure within the first 18 months of acquisition coupled with the reliance on physical Experience Centres (neighbourhood well-stocked physical Konga stores) largely ignited the fire of sustainability and profitability. This explains the miracle of Konga breaking even barely three years after the acquisition.

A combination of these factors plus the company’s ability to disrupt the market form the basis for the new push by Konga to list at the London Stock Exchange (LSE). Analysts believe that with its strong showing in Africa, Konga listing on the LSE would raise the bar for African investors hunting fortunes in the global market. It’s considered the game-changer for African investors.

Konga, as an African brand, has shown capacity to adapt, innovate and create value for both customers and investors. Going global will only help its team of young outliers rack up return on investment as well as improve the continent’s business profile on the global investment index.

Data from Statista, a renowned statistics portal, reported that the total value of e-Commerce in Africa grossed $16.5 billion in 2017 and is expected to hit $29 billion by 2022. It’s no surprise that Konga has become the fastest-growing e-Commerce house in Africa.

This further underscores the United Nations Conference on Trade and Development (UNCTAD) e-Commerce Index Report 2018 which placed Nigeria, South Africa and Kenya as accounting for more than half of the online shoppers in Africa.

Nigeria is reputed as Africa’s largest business to consumer e-commerce market in terms of both number of shoppers and revenue and Konga is at the core of this market volume. This is what it’s taking to the global market: an ingrained ability to re-invent itself at all times, innovate through the contours of competition and grow its customer base. When tomorrow comes and Konga, the e-commerce heartbeat of Africa, lists at the LSE, Africa would have made a bold statement: We are not the continent ruined, we are the continent ready to roll.

 

Author: Ray Umukoro, pan-Africa ICT blogger, writes from Lagos

 

 


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

E-Business

Minister Seeks Digital Tech Adoption to Improve Agriculture, Boost Food Security

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The Minister of Communications, Innovation and Digital Economy, Bosun Tijani, has called for the urgent adoption of digital technology in Nigeria’s agricultural sector to boost food production, curb rising prices, and reduce the country’s dependence on food imports.

Speaking on Thursday in Abeokuta at the Ogun Tech Forward Innovation & Startups Roundtable session, Tijani stressed that Nigeria’s vast arable land and large population could only be effectively harnessed through technological intervention.

He warned that without embracing innovation, traditional farming practices would remain inefficient and expensive, putting food security at risk.

“Technology innovation has already contributed 16 to 18 per cent, but we are aiming for 21 per cent. We need to introduce our technology into agriculture to produce enough food to feed ourselves

“Without technology, countries like Nigeria cannot practise agriculture effectively. We have the vast land, but without technology, we won’t do it well,” the minister said.

Tijani noted that the continuous rise in food prices and the country’s dependence on foreign exchange to import grains that can be grown locally is unsustainable.

He emphasised that leveraging tools such as mobile apps, drones, sensors, and data analytics could transform Nigeria’s farming landscape by enabling precision agriculture and providing real-time insights on soil conditions, pest control, crop health, and intruder detection.

He maintained that the deployment of such technologies would not only enhance farming efficiency and sustainability but also lead to higher yields, lower production costs, and ultimately, more affordable food for Nigerians.

The minister also made a broader case for inclusive innovation across the country, cautioning that Nigeria’s technological future cannot be shaped by a few urban centres alone.

He said the federal government would support emerging tech ecosystems, especially in states like Ogun, to ensure grassroots participation in the digital economy.

Tijani declared, “We can’t leave innovation in the hands of just a few cities. Every part of Nigeria, including towns and rural areas, must be part of the digital journey. The more people we carry along, the stronger we become as a country.”

Tijani, however, revealed that the federal government would back Ogun Tech Hub’s initiative aimed at creating 300 jobs through business process outsourcing as part of a broader vision to transform Nigerian states into ‘talent cities’.

He said, “If we don’t invest in our own people, we’ll keep depending on others for solutions. We must create space for local ideas to grow and become real businesses.”

The minister further called for the integration of emerging technologies such as artificial intelligence, robotics, and drones into key sectors, particularly agriculture, while advocating for the adoption of generative AI in education to support personalised, accessible learning across communities.

In his remarks, the President of the Ogun Tech Community, Adekunle Durosinmi, called on the federal government to provide strategic support to accelerate the growth of the state’s digital ecosystem.

He urged the minister to facilitate the establishment of a functional innovation hub and a permanent secretariat to nurture local startups.

Durosinmi highlighted the critical role Ogun State plays in Nigeria’s economic framework, describing it as a major industrial hub and strategic transport corridor linking Lagos with the rest of the country and West Africa.

He said that with 57 per cent of its 7.1 million projected population in the working-age category, Ogun State possesses immense potential for digital innovation, job creation, and youth development.

“Ogun State is uniquely positioned to become a national leader in technology and entrepreneurship. We have more than 29 tertiary institutions—more than any other state in the country—which makes us a natural home for innovation,” he said.

Since its launch in February 2022 and formal registration with the Corporate Affairs Commission, Durosimi stated that the Ogun Tech Community has organised various initiatives aimed at strengthening digital literacy, cybersecurity awareness, and grassroots tech engagement.

He noted that the community has created 19 active clusters, ranging from developers and mentors to women in tech and agritech specialists, all working together to drive inclusive growth in the tech space.

He reiterated the community’s alignment with the National Digital Economy and E-Governance Bill 2024, stressing that its programmes, governance structure, and advocacy are geared toward promoting digital literacy, supporting startups and SMEs, encouraging e-government services, and fostering responsible digital innovation.

He also stressed that collaboration between government, industry, academia, and the tech ecosystem is key to achieving national development goals.

He expressed appreciation for Tijani’s presence at the roundtable, describing it as a clear indication of the federal government’s commitment to inclusive innovation.

“We want to see such solutions replicated across the country. To accelerate this, we need your support. Ogun urgently needs a fully functioning physical secretariat and, importantly, a dedicated innovation hub to nurture and grow even more startups,” he said.

 


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E-Business

NOTAP, REVASS Ink Agreement to Strengthen Tech Compliance

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National Office for Technology Acquisition and Promotion (NOTAP) has signed an agreement with Revass System limited to strengthen technology acquisition compliance through its regulatory framework and boost sustainable capacity in the country.

NOTAP, REVASS Ink Agreement to Strengthen Tech Compliance

Speaking during the signing of the agreement in Abuja, Dr. Obiageli Amadiobi, director general and chief executive officer, NOTAP, said that the agreement is to reinforce NOTAP’s core mission of ensuring that technology imported into the Country serves the broader interest particularly in advancing local content development, nurturing indigenous capabilities and ensuring sustainable job creation.

In a statement made available to journalists by Raymond Ogbu, assistant chief information officer, NOTAP,  the DG said that the major purpose of the agreement was for Revass Systems limited to design, develop, deploy and manage a secure and efficient digital revenue collection system for NOTAP that will be in compliance with NOTAP Act, Central Bank of Nigeria CBN financial guidelines, NITDA policies, and other applicable Nigerian laws.

The DG said that the app should enhance transparency, accountability, and operational efficiency in revenue collection and management as well as build the capacity of NOTAP staff through structured training and technology transfer initiatives.

Dr. Amadiobi stated that the agreement reflects a strategic approach to safeguarding Nigeria’s economic and technological independence by ensuring that every technology transferred into the country delivers tangible value to Nigerians.

“This partnership represents a pivotal step in ensuring that technologies coming into Nigeria are not only in compliance with Nigerian laws but also aligned with the country’s developmental priorities”.

“The goal of the agency is to ensure that every agreement NOTAP registers, contributes meaningfully to critical skills development, job creation and growth of local enterprises” she said.

The Director General reaffirmed that the milestone is in consonance with the strategic vision of the supervising ministry, the Federal Ministry of Innovation, Science and Technology (FMIST) as well as the Renewed Hope Agenda of President Tinubu to transform the country into a knowledge-based economy driven by local capabilities, productive collaborations, and build globally competitive talents.

“No meaningful developments could happen in critical areas of our economy without the deployment of technology hence the office is making every effort to deploy technology in all its operations to ensure efficient and timely service delivery” she added.

 


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E-Business

NEPC, NBS Sign MoU on Data Capturing

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Nigerian Export Promotion Council (NEPC) and Nigerian Bureau of Statistics (NBS) have signed a Memorandum of Understanding (MoU) to facilitate data collection from Informal Cross Border Trade.

NEPC, NBS Sign MoU on Data Capturing

Nonye Ayeni, executive director/CEO of NEPC, at the signing ceremony held in Abuja, Nigeria’s Capital said the event marked a major turning point in Nigeria’s quest to grow its export trade through the capturing of data in the informal sector.

“Existing trade data primarily capture activities within the formal sector, offering limited visibility into informal export trade transactions, despite their significant volume and economic impact. In 2024, formal export trade records indicate that 7.291 million metric tons of non-oil products valued at US$5.456 billion, were exported from Nigeria. This figure excludes informal export trade data”, she added.

She stated that the Informal cross-border trade is not just a distant, peripheral activity but real trade that fuels livelihoods, strengthens regional supply chains, and contributes significantly to our national and continental economic resilience.

According to her, “Informal export trade representing millions of dollars in goods and services has remained largely outside our official records. Informal export trade data collected by NEPC State offices from major corridors in Kano, Jigawa, Kebbi, Zamfara, Katsina, Sokoto, Lagos, Ogun, and Adamawa reveal transactions valued at over $31.8 million in some months of 2024”.

Ayeni disclosed that reports from the National Onion Producers, Processors and Marketers Association of Nigeria (NOPPMAN), shows that over 1.6 million bags worth of the commodity were traded informally to neighbouring countries such as Ghana, Cote D Ivoire, Benin, Cameroon, Congo, and Niger Republic.

The NEPC boss pointed out that these impressive achievements were not captured in the national export trade statistics thus portending real implications for economic planning for the country.

“It weakens Nigeria’s voice in regional and global trade negotiations, it denies informal traders the recognition and support they need to thrive as well as diminishes Nigeria’s economic potential, especially the vital contributions of women, youth, and MSMEs”.

Ayeni explained that the collaboration between the Council and the NBS was borne out of the desire to correct the imbalance and capture the full spectrum of Nigeria’s export trade activity.

Adeyemi Adeniran, statistician general of the Federation, noted that the meeting of key players from national and sub-national agencies, regional institutions, international development partners, and the organized private sector, reflects the strong spirit of collaboration required to address one of the most pressing challenges in Nigeria’s trade data architecture, capturing and integrating data from informal trade and trade in services into the national framework.

Adeniran was of the view that the data gap severely impedes evidence-based policymaking, limits capacity to engage in fair trade negotiations, and undermines the accuracy of  macroeconomic indicators adding that traditional trade measurement systems have long focused on formal, large-scale transactions while overlooking the vibrancy of informal trade routes.

He disclosed that informal trade in Sub-Saharan Africa contributes between 20 to 40 per cent of intra-African trade, with Nigeria accounting for a significant share due to its long and porous borders.

“These are not just gaps in data, rather, they represent gaps in our understanding of economic life and the well-being of millions of Nigerians who engage in these activities daily”, he said

Adeniran said the collaboration with NEPC, presents a timely opportunity to update and harness current trends, identify new opportunities, and design data-informed strategies to support trade formalization, enhance competitiveness, and ultimately foster inclusive economic growth.

“Capturing informal trade data will also help us design smarter border policies, enhance food security, facilitate small and medium enterprise development, and monitor regional integration efforts,” he added.

 


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