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Home Blog Page 4982

Well Done Jumia/JumiaPay for Executing Double Play Strategy- 3.4M transactions in Q2 2022

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Jumia looks really amazing. In short JumiaPay is unlocking new vistas for this company: “JumiaPay also recorded impressive numbers in the second quarter, with its TPV growing by 31% year over year to $74.2 million, and transactions reaching 3.4 million in the second quarter of 2022, growing by 25% year over year. The platform has yet to put its Payment Service Solution Provider (“PSSP”) license — granted by Nigeria’s apex bank, the Central Bank of Nigeria to process payments for third-party businesses — to use in Nigeria.

“Poignonnec [co-CEO Jumia] said it’s only a matter of time before the service is live in Nigeria. However, JumiaPay has begun a pilot in Egypt where the platform has a similar license.”

In two years, JumiaPay could join the tier-1 of leading fintechs in Africa. Jumia looks extremely impressive when you see how fintech companies are valued. Having JumiaPay will give this company new mojos in the future. I have made the point that Jumia  must execute one oasis/double play strategy to have any chance since ecommerce alone cannot power its future. Today, that double play is JumiaPay and this company has a clear future.

The One Oasis Strategy is about finding how to create solutions which can find their first customers within the business. Amazon Cloud has the ecommerce operation as its first customer thereby removing any market risk. Samsung Semiconductors has the Samsung mobile devices business as the first customer. With those assured internal customers, these firms deploy resources, irrespective of the market dynamics, because they have found the first customers already, in-house. But over time, the products are now made available to the general public. You need to identify your best product (the oasis) and get others to find how to build habitations around it.

Everyone is deepening the age of double play strategy; TikTok sees growth in the ecommerce operations: “TikTok’s gross merchandise volume (GMV) for its e-commerce business in the first half of 2022 exceeded $1 billion, which is equivalent to the full-year volume the platform saw in 2021, LatePost reported on August 10. Among them, the average monthly GMV in Indonesia reached $200 million while the average monthly GMV in the UK was $24 million. However, compared with its competitors, the scale of TikTok’s e-commerce is still limited.

“The GMV of Shopee, which belongs to Sea Ltd., exceeded $60 billion in 2021. Alibaba disclosed on its 2021 Investor Day that as of September 2021, its e-commerce platform Lazada’s GMV reached $21 billion. TikTok’s e-commerce achieved rapid growth in the first half of the year, which benefited from its expansion in Southeast Asia, in addition to its own small volume.”

 

Start the Innovation Engine by Registering for Tekedia Mini-MBA

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Car start button on dashboard. Innovation start writes on push button. Horizontal composition with copy space and selective focus.

Ladies and Gentlemen, start the engine. Start that innovation engine. At Tekedia Institute, we have created a temple for the mastery of Africa’s entrepreneurial capitalism. Registration for another edition of Tekedia Mini-MBA (Sep 12 – Dec 3, 2022) has since started. Tekedia Mini-MBA is an innovation management 12-week program, optimized for business execution and growth, with digital operational overlay. It runs 100% online. The theme is Innovation, Growth & Digital Execution – Techniques for Building Category-King Companies.

All contents are self-paced, recorded and archived which means participants do not have to be at any scheduled time to consume contents. Our programs are designed for ALL sectors, from fintech to construction, healthcare to manufacturing, agriculture to real estate, etc.

Start the engine by registering here.

Key Contributors to the Quantum Leap in Nigeria’s Internet Broadband Adoption and Penetration

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Two weeks ago, I decided to visit my aunt and foster mum at her new home in Ibadan where she’s just relocated to from Lagos. The visit also enabled me to reunite with my cousin’s lovely kids, Emmanuel and Emmanuela since 4 years ago that I’d left Lagos to work in Ibadan. I was really taken aback by the rapid growth of Emmanuela who is now 6 years old and 3 years younger than her brother.

The first shocking encounter I had with the kids was how they could easily find their way around my smartphone, browsing from one YouTube kids’ channel to another via the Google voice command feature on the phone. Even when my internet data subscription finished and they could no longer continue with their engagement on YouTube, Emmanuela opted to bypass the ensuing boredom by video recording herself with the phone’s front Camera for her imaginary audience on YouTube. Hearing the six-year-old saying “make sure to subscribe to my Youtube channel and join me next week…bye bye” I knew I may be dealing with the first TV presenter at the house.

Puzzling over the tech-smartness of my cousin’s progenies, I would later discover each one of them has a Amazon’s customized tablet that their mum had got for them about a year ago to hone their skills with. I could only imagine what these Genzees would have grown into in the next couple of decades.

Nearly a decade ago, fewer than 5 percent of people in the sub-Saharan African region where Nigeria is located had access to the internet. Today, the story has changed significantly. As at December 2020, an approximately 73 percent of Nigeria’s population was said to have internet access, the country came after Kenya which was reported 85 percent of her population had access to the internet. A 2020 report by the Berlin Institute for Population and Development put the number of Nigerians with fixed-line phone connection at 550,000 out of an estimated population of 122million in the year 2000.

However, in 2004 9million phone subscribers were recorded in the country and by 2019, the number of Nigerians with a mobile contact skyrocketed to 185million. According to the Economist, mobile phone ownership in sub-Saharan Africa was already more widespread than access to electricity as early as 2016.

Since the launching of 2G, 3G and 4G networks, smart phone usage have improved significantly across the world and inspired major innovations and revolution in the telecommunication industry which trigger efforts towards achieving the 5G network system. In Nigeria, about 75 percent of website traffic was said to be generated via smart-phones. Nigeria’s smart-phones market was projected to reach 140million by 2025, making the country the largest tech hub  of sub-Saharan Africa.

On Tuesday, 9 August 2022, the Nigerian Communications Commission (NCC) which is an independent national regulatory authority of the Nigeria’s telecommunication industry reported that Nigeria’s internet broadband penetration witness an increase to 44.4 percent in June 2022 from 40.88 percent in December 2021 and the total number of broadband subscriptions grew to 84.61million from 78.04million within the same period, resulting in the broadband’s expansion by 91.70 percent within the last four years. Also, the industry’s GDP contribution rose from 9.81 percent in 2018Q4 to 12.16 percent in 2021Q4.

According to the executive Vice Chairman of NCC, Prof. Umar Danbatta, who spoke on Tuesday 9 August at the ongoing public inquiry on the five key regulatory instruments of the Commission in Abuja which will close on Friday 12 August, “the increase in the nation’s broadband penetration can, among things, be attributed to the sustained efforts by industry players in deploying fixed and mobile broadband infrastructure”.

Drawing insights from a general assessment of the industry, the following factors are also attributable to the quantum leap recorded in the Nigeria’s internet broadband:

  1. Digital Economy: Data has come to be seen as the new oil due to increasing technological innovations that have their major impacts on the economy in raw data form waiting to be analysed and then used to develop insight and make informed decisions. The global data explosion or the big data ecosystem led to the application of digital technology across different businesses and industries even outside the shores of the ICT sector.

  2. Increased ICT investment: Over the last four years, the Nigerian Information Communication Technology sector has witnessed improved investment from institutional and noninstitutional investors including international organizations who see opportunities in the Nigerian ecosystem. In October 2021, tech behemoth Google announced plans to invest $1billion in Africa over the next five years to diliver better access to fast and cheaper internet. Also, Elon musks announced his starlinks satellite internet Networks which is expected to commence operation in the country soon.

  3. Social media: The massive engagement of people on the social media for their day-to-day social relations or business transactions also has contributed to the improvement of the country’s internet broadband. Over the years the social media which requires internet connection has been seen as a trusted go-to-place to make money or overcome boredom.

  4. Covid19: The Covid19 pandemic urshered in a new approach to work. Remote working during the lockdown meant that demand for internet connection and subscription would increase to be able to access telecommuting platforms such as zoom, YouTube, WhatsApp, Microsoft meet etc. This work ethic has been maintained even after the lockdown.

  5. Government policy and Programmes: The Nigerian Government have also showcased interesting programmes and policies that attract investment and development to the sector. States like Lagos, Ekiti, Kaduna and Kwara reduce the right of way charges to encourage investments in broadband infrastructure in the states. An example is the partnership between Kaduna Government and Airtel Nigeria to deepen 3G and 4G network coverage in the state by the end of 2022 including deployment of fibre network access.

The NCC approved commencement of Fibre roll-out by licences under the Open Access Infrastructure Network (OAFIN) Licence aka Infrasco License. The NCC has been working to implement policies such as the National Broadband Plan, the National Digital Economy Policy and Strategy as well as its Strategic Management Plan and Strategic Vision Implementation Plan. Also, the NCC’s five key regulatory instruments is conceived to facilitate stakeholders’ engagement in the regulatory interventions of the commission and address emerging needs of players across all value chains of the industry.

Extension services by mobile network service providers: Leveraging creative and design thinking, some mobile network service providers are able to extend their influence beyond their traditional telecommunication services to include other services that add value to their customers and make life more meaningful. This has contributed to the revenue base of some of these platforms. For example, MTN declared a profit of N181bn for 2022Q2 as against N141.8bn made in 2021Q2; the company also recorded growth in its shares and users due to it’s internal ingenuity. MTN’s entry into the fintech space with it’s newly launched MoMo payment Service Bank recorded 4.2million registered users that use their wallets to make several millions of Naira transactions within few weeks. Also when NCC issued a directive to all mobile network providers to cut-off their subscribers that failed to link their Sim with their National Identification Number (NIN), MTN was able to assist in expediting the NIN enrollment of its users which significantly contributed to its subscribers and revenue base.

Thank you OneWattSolar

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Tekedia Institute thanks OneWattSolar for its partnership. The firm is a mobile technology platform that delivers tokenised digital services and products enabled by blockchain architecture and backed by IoT & AI. The core product is renewable energy services. It issued and completed the first green bond, worth billions of Naira,  in the history of Nigeria.

Our partnership with OneWattSolar makes it possible for our learners to do internships. That internship can be remote or on-site. This week, we have our first learner from Copenhagen, Denmark.

Tekedia Institute thanks OneWallSolar for making it possible for us to prepare the workforce of the future. Thank you.

Tekedia Institute Welcomes Be The Help Foundation

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Join me to welcome a really fascinating non-profit in Nigeria to Tekedia Institute: Be The Help Foundation. Be The Help Foundation runs an agroforestry project  and offers  hands-on training centers for agroforestry and rural development.  The team will spend weeks at Tekedia Institute, and together we will co-learn on business systems and productivity elements. Tekedia Corporate Training helps companies optimize factors of production to become more efficient, and  thrive.

The best companies attend Tekedia Institute. With our 250 world-class faculty, we exceed the expectations of clients. That is why more companies choose our Institute . Learn more here 

Tekedia Institute offers virtual (online) corporate courses and workshops to startups, SMEs, NGOs, corporations and public sector entities. On engagement, we design, develop and deliver live corporate courses and workshops on many business domains (see below) using our Faculty.  We have served senior, middle and junior management cadres of companies besides general staff, including entry level employees in our  training program. We’re here to help you execute that business mission by deepening the capabilities of your manpower. Here are some attributes:

  • Custom and Consultative Training: Our training is consultative in structure and that means that we partner with you to gain a deep understanding of existing skills gaps in your organization as we design the curriculum. With those insights, we architect a roadmap, customizing and curating our courseware and programs to help achieve your strategic business objectives.
  • Project- and Case-Components: Our training includes business cases which are drawn from diverse sectors and geographies. Our faculty are leaders in leading local and global companies, and they ensure that our courseware is fresh, relevant and applicable to real business challenges.