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Konga: Leading the African e-Commerce Resurgence

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By Bosun Idowu George, a freelance e-Commerce researcher, writes from the UK.

In early January 2018, a mega acquisition that would alter the equation in Nigeria, Africa’s biggest economy, was about to go down.

On one side and spearheading this landmark acquisition was the Zinox Group, a Nigerian-headquartered but globally renowned technology group that had overseen over three decades of sterling and unmatched leadership in the Sub-Saharan African business terrain.  On the table was Konga, one of the latter-day pioneers of the new wave of e-Commerce in Nigeria which, incidentally, was first ignited by Leo Stan Ekeh, Chairman of the same Zinox Group with his BuyRight Africa, the continent’s first e-Commerce platform, which struggled over 12 years ago with the absence of a structured payment system.

And on the other side of the negotiating table was Naspers, a South African-based serial investment firm and AB-Kinnevik, another investment firm with its headquarters in Sweden.

Both firms had overseen years of huge investment in Konga which, however, had failed to yield the desired ROI. For all its boundless potential, the world-class technology infrastructure driving its operations and its solid human capital, the previous owners of Konga were just not able to crack the e-Commerce bug. Despite making useful in-roads and expanding the scope of e-Commerce in Nigeria, Konga was struggling to stem losses and carve a sustainable path to profitability. For these investors, the question was whether to persist with pumping massive sums into the business and see out the e-Commerce waiting game, or cut their losses and walk away.

Naspers and AB Kinnevik plumped for the latter.

So, in stepped the Zinox Group and the announcement of its acquisition of Konga –  a piece of news which reverberated around the globe and which, till date, is still widely regarded as one of the most brilliant acquisitions ever recorded in the African nay global business space.

In acquiring Konga, the jury was still out on whether the new owners –  credible, ethical local-based but global business people with a track record of outstanding entrepreneurship – could succeed where Naspers and AB Kinnevik, with its war chest of funds, failed. Can Konga, under its new owners with a loss of about N34bn in her balance sheet as was rumoured, finally rise up and fulfil the latent potential it showed sufficient promise of, when it pioneered the marketplace structure which, reports say has now been adopted by the likes of Amazon, Alibaba and Jumia, among others?

For many e-Commerce watchers, it would take nothing short of a miracle.

But indeed, a miracle was afoot within the four walls of Konga, right from the day it came under new ownership. Three years down the line, investigations show that Konga is now seemingly reborn, a flourishing retail behemoth and a fitting standard-bearer for the African continent which has remained in need of an ethical, trustworthy brand it can count on in the e-Commerce space.

In tracing the trajectory of this beautiful bride of African e-Commerce and how it is now the toast of investors keen to get a slice of the business, it is important to state that, at the point of acquisition, Konga was perhaps written off by many industry experts.

As an avid e-Commerce researcher and enthusiast, I had followed keenly the narrative around the business from my base back then in the United States, especially from the foreign media right after its acquisition. The overriding sentiment then was one of quiet pessimism. However, one of the first things that caught the eye and which made Konga a business to watch was the merger of its operations,barely three months after its acquisition, with that of Yudala, another e-Commerce start-up with an excellent business model launched by tech whizkid Prince Nnamdi Ekeh, scion of the serial entrepreneur, Leo Stan Ekeh. Again, the assumption of another renowned corporate executive in Nick Imudia, a former VP at Nokia as Co-CEO calmed nerves, especially in the assurance that innovation, experience and quality corporate culture would drive the vision because of the ownership of the new Konga.

Having said that, many proud entrepreneurs would have persisted with running both entities side-by-side, as a merger would have definitely involved giving up a few things on both sides. In the case of Yudala, it gave up its name and took on the Konga brand name while for Konga, it shed its blue colour for Yudala’seye-catching and striking fuchsia pink.

However, the grand merger of both companies,as decided by its new owners turned out to be a masterstroke, one in a long list of many brilliant strategies that has seen Konga rise to the summit of the Nigerian and African e-Commerce market.

For in merging these two powerhouses, Nigeria now had a powerful e-Commerce engine – a platform that can today take on all comers and give even the likes of Amazon and Alibaba a good run for their money, should they eventually expand their operations to Nigeria in search of the much-touted lucre that the country’s predominantly youthful and aspirational population holds.

No other e-Commerce player in Africa boasts the sheer reach at the disposal of Konga, arising from its composite nature. For the savvy online shoppers, it offers a cutting-edge online platform, complete with a surfeit of payment and fulfilment options while for the many others who are still stuck in their die-hard traditional shopping predilection, the physical Konga stores dotting the landscape are a ready-made answer.

In examining the way and manner Konga has quietly risen like a phoenix and its transformation into a viable brand that may list on the NYSE and the London Stock Exchange, it is essential to cite this template of its new owners as one to be adopted by budding entrepreneurs or studied in global business schools.

Prioritising a sound structure, solid corporate governance and ethics over quick gains or hype, as is often the fare in the sector, the new Konga is an investor’s wet dream, a reliable entity that is today worth its weight in gold.

For all who come in contact with the brand, there is no denying the place of its outlook as an ethical brand. Konga boldly declares that its policies leave no room for cooking the books, falsifying sales figures or fraudulent practices. Merchants on its marketplace platform face blacklisting or other sanctions when fake or sub-standard items or products are traced to them. Better still, Konga has in place strong partnerships with a number of Original Equipment Manufacturers (OEMs) which ensure that it remains the most trusted source for genuine products in the entire e-Commerce ecosystem.

With the foundation of the new Konga strongly rooted as an ethical company, the management has gone about its business of shoring up other aspects of the business.

In addition to ramping up its operational efficiencies and reducing losses to the barest minimum, as stated by Prince Nnamdi Ekeh during a recent interview monitored on Arise TV, the new owners have also invested strategically in a few verticals that have raised the bar. Among these is the capacity of Konga to reach shoppers at the last mile wherever they may reside, a factor made possible by strengthening Kxpress, an internally-owned, digitally-driven delivery channel, through which Konga has demystified the challenging pain-point of logistics which has driven many other players out of the market.

Furthermore, Prince Nnamdi Ekeh also referenced the company’s massive warehousing facilities which have undoubtedly empowered it to effortlessly close and deliver big tickets or service heavy projects. Konga was recently in the news for making available tons of laptops at reduced prices for Nigerians at the height of the global scarcity of units; a scarcity occasioned by supply chain breakdowns exacerbated by the COVID-19 lockdown. It also boasts a reliable mobile wallet – KongaPay – licensed by Nigeria’s Central Bank which delivers a number of useful services for subscribers, including paying for online shopping, airtime/data recharge, money transfer, utility bills payment and many others.

But it is in the expansion of its wings that Konga has truly shown its strength.

Today, Konga is not just known for its first love – retail – but has grown into an e-Commerce group that also has in its fold, a travel and tours agency, Konga Travels, which has racked up a number of local and international awards within a couple of years of its existence, in addition to its other existing subsidiaries – Kxpress and KongaPay.

Konga has also grown 800 per cent since its acquisition as proudly announced by Prince Ekeh in the course of the Arise TV interview, propelling it to the cusp of history as Africa’s first profitable e-Commerce player.

All these without any form of external investment…

But that is not all.

In Konga Health and Konga Food, two new subsidiaries which reports in the media say will disrupt the medicare and food delivery ecosystems, the management of this e-Commerce miracle is also preparing the grounds for long-term dominance.

Africa has long suffered from the absence of an ethical, reliable platform it can fall back on in the global e-Commerce race.

That is no longer the case.

In Konga, the evidence is there for all to see that finally, Africa now has a strong voice, an ethical leader that Nigeria and the rest of the continent can look up to.

 

 

 

 


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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

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First Women Radio Virtual Assistant Makes a Debut in Nigeria

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Women Radio 97.1, in partnership with the Centre for Journalism Innovation and Development (CJID) and the Voice of Women Empowerment Foundation, has made history by unveiling “NIM”, Nigeria’s first Women Radio Intelligent Virtual Assistant.’

First Women Radio Virtual Assistant Makes a Debut in Nigeria

The unveiling took place during the 2024 Women Radio Summit, signalling a transformative era for radio broadcasting in Nigeria.

The initiative, which integrates artificial intelligence into traditional radio broadcasting, represents a paradigm shift in how radio content is created, distributed, and consumed. In her welcome message, Toun Okewale Sonaiya, CEO of Women Radio 97.1, shares her aims to inspire others into AI’s future, expand access to reliable information, and enhance the listener experience by blending advanced technology with human-centred communication.

The event featured some keynote speeches from:

Toyosi Akerele-Ogunsiji, founder of Rise Network, emphasised the role of science and technology in empowering women and reshaping media landscapes.

Adedeji Adekunle, programmes director of the Nigeria Media Innovation Program, discussed the critical intersection of AI, innovation, and media development in Nigeria. As well as

Sam Onigbanjo, managing director of AI Academy for Beginners, enumerates ways to upskill for maximum integration.

The summit featured an insightful panel discussion on how artificial intelligence can enhance journalism and broadcasting while upholding ethics and professionalism. Esteemed panellists included:

Motunrayo Alaka, executive director of the Wole Soyinka Centre for Investigative Journalism, stressed the need for maintaining ethical standards in AI-driven journalism.

Kayode Okikiolu, a Channels TV anchor, discussed the integration of AI in traditional media formats to engage broader audiences and highlighted AI’s potential in diversifying content delivery and improving inclusivity in media.

A highly recommended fact-checking resource was the Dubawa.ai chatbot, an app that was showcased at the summit to verify and debunk misinformation, analyse, transcribe, and document files in archives. It is the radio monitoring feature, an initiative of the Centre for Investigative Journalism Innovation and Development (CJID).

‘NIMI’, the Women Radio Intelligent Virtual Assistant, is the brainchild of technical engineer Tayo Kalejaiye.

This revolutionary AI radio host is designed to provide seamless interactions with listeners, offering valuable resources, news updates, and support for both on-air and online delivery. By combining AI with traditional broadcasting, ‘NIMI’ aims to enhance accessibility, ensuring that diverse voices are amplified and underserved communities are reached.


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51-Year-Old QNET User Breaks World Record with 20 Back Handsprings

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QNET, a global wellness and lifestyle company, proudly celebrates the remarkable achievement of Anup Debnath, a 51-year-old fitness enthusiast, ardent user of QNET products, and resident of New Jersey, USA, who recently attempted to set a Guinness World Record as the oldest person to perform continuous back handsprings.

Debnath’s feat underscores the power of balanced health and wellness to maintain peak physical performance at any stage of life.

On October 19th, at the Marlboro Township Recreation Center, Debnath completed 20 continuous back handsprings, a remarkable testament to his strength, stamina, and unwavering discipline.

His journey back into gymnastics after nearly 27 years highlights the potential of a balanced lifestyle supported by QNET’s wellness products, demonstrating that age is no barrier to achieving extraordinary physical goals.

“To accomplish something like this at my age takes intense dedication, a consistent fitness regimen, and harmony of mind, body, and spirit,” Debnath shared.

“For the past two years, I’ve relied on the Amezcua Chi Pendant 4 with Amezcua Resonance Technology (ART) to keep me centered and energized.

Paired with other Amezcua products, like the Bio Disc 3, which energizes my food and structures the water I consume, giving me mental and physical balance, and the Bio Light 3, which aids in recovery by alleviating pain and discomfort after intense training, these products enhance my overall well-being and empower me to push my limits.”

QNET’s Chief Marketing Officer, Trevor Kuna, extended his heartfelt congratulations: “Anup’s achievement is extraordinary, and we are incredibly proud to have played a part in his journey.

“His belief in QNET’s Amezcua products reflects our mission—helping people achieve balance and wellness in every aspect of their lives.

“Anup’s story is a testament to discipline, resilience, and holistic well-being. We celebrate his inspiring feat and his commitment to greatness.”

QNET’s Amezcua Chi Pendant 4, which utilizes ART, is designed to support wearers in achieving holistic well-being by harmonizing physical, emotional, and mental energies.

Through Debnath’s achievement, QNET encourages individuals to explore how Amezcua technology can support their wellness journey at any stage in life, empowering them to achieve their own physical and mental potential.


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House of Reps Calls for N500bn Recapitalization of DisCos

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House of Representatives has called on the Federal Government to enforce a minimum capital base of N500 billion for electricity distribution companies (DisCos) to continue operations.

The lawmakers argue that only financially robust DisCos can ensure efficient service delivery and maximum consumer satisfaction.

This resolution was passed during Wednesday’s plenary following a motion by Ibrahim Isiaka, a representative from Ogun State.

Isiaka criticized the current operations of DisCos, describing their actions as a threat to the economic stability and welfare of Nigerians.

He highlighted consumer complaints regarding the replacement of electricity meters, noting that DisCos often demand additional payments despite consumers already financing the installation of meters.

Isiaka expressed concern over the financial burden this places on households and businesses struggling with economic challenges.

The motion also raised issues of consumer trust, alleging that DisCos operate with impunity and disregard for consumer rights, despite oversight from the regulatory authorities and the House Committee on Power.

The lawmakers unanimously adopted the motion through a voice vote conducted by Speaker Tajudeen Abbas.

They urged the Ministry of Power to take immediate steps to address the “reckless actions” of DisCos, labeling them as non-state actors threatening Nigeria’s economy.

The House further mandated the recapitalization of DisCos to a minimum of N500 billion, insisting that only financially capable operators should be allowed to continue providing electricity services.

Additionally, the House Committee on Power was directed to investigate the activities of DisCos to ensure accountability and protect consumer rights.


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