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Tekedia Live – First Scaler Advantages, Optimizing Uncertainty, Speed & Growth

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Join me tomorrow at Tekedia Live as we discuss first-scaler advantages and how to optimize uncertainty, speed and growth in young companies. The world focuses on first-mover advantages (the first to market largely wins); I dwell on first-scaler advantages because the stable state sector-winners are not just those who pioneer sectors, but rather those who scale first, improving marginal costs and unit economics on the way.

The greatest reward in digital businesses is attaining near-zero marginal cost where marginal cost over time in the finite time becomes asymptotic. In Further mathematics in secondary school, in the Series section, you can say that let x be a continuous variable tending to a limit. If you have a real function f (x), and positive function g(x), you can have an asymptotic equivalence if f/q ? 1 as the limit is taken (you can also use Landau symbols and express all with infinity over a discrete space).

Good People, I will not bring any calculus tomorrow. But note this, the best pricing models in Lagos in logistics startups deploy a lot of calculus. Distribution cost, a key component of marginal cost, remains extremely unbounded where you have no postal service, and that means you have to use calculus to determine certain things using your operating variables. Mathematics graduates are hired to build those pricing systems.

Tekedia Mini-MBA >> come for a mindset. Registration for the June edition continues here 

UPS Enters Into Partnership With Jumia To Expand Delivery Services In Africa

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One of the largest and most trusted global shipping and logistics companies in the world, UPS recently entered into a new partnership with one of Nigeria’s number one online shopping sites Jumia, to grow its reach on the African continent. This new partnership will give UPS access to the e-commerce firm’s last-mile delivery infrastructure. Leveraging on Jumia infrastructure in Africa, UPS plans to offer its customers an extended range of delivery solutions, which includes door-to-door package delivery and collection, with a large variety of payment options.

This new partnership will ensure that UPS customers can pick up or drop off packages for sending across the world at Jumia’s stations in Africa (Kenya, Nigeria, Morocco). They also have plans of expansion to Ghana and the Ivory Coast and thereafter to other African countries where Jumia operates.

According to Apoorva Kumar, Senior Vice President of Logistics, Jumia, in his words, “At the beginning of our journey, 10 years ago, logistics infrastructure was one of the most challenging aspects of our operating environment. This challenge was a catalyst for us to build an unparalleled logistics platform in Africa offering our sellers and consumers reliable, convenient and cost-effective delivery services.

“Today, we are helping other businesses overcome these infrastructure challenges by giving them access to our logistics platform. We are delighted and humbled by the opportunity to partner with UPS, a global logistics leader, to offer the last mile solutions in Africa. We view this as a validation of the strength of our logistics platform as well as an incentive to double down on our efforts to further enhance our services and build a world-class logistics business in Africa,”

This partnership will be of great benefit to businesses in Africa, most especially the small and medium-sized businesses because it will offer them the channel to quickly and effectively connect to new customers around the world through the UPS global network. According to statistics small and medium-scale businesses which are believed to be the backbone of the African economy make up 90 percent of businesses on the African continent, which require delivery, and logistics services to deliver value, grow and break even. With this new partnership, their business will definitely experience a turnaround.

This partnership is no doubt a significant step for Jumia in Africa, as the market is projected to reach $180 billion in trade by 2025. The partnership has already started paying off already. According to reliable sources, the American depository receipts of Jumia jumped to 30% on the New York Stock Exchange, which saw Jumia rise from $934.6 million to $1.2 million. There’s still a lot to explore in the African e-commerce market, as e-commerce on the continent is still about five percent of the total retail.

Egoras Opens A New Store in Rivers State

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Egoras Team

Thank you Good People. We underestimated the level of support from our fellow citizens. We opened an Egoras store today in Port Harcourt, expecting 20-30 people. But more than 2,000 people showed up and bought 100% of the items we have. This is a good problem to have. We only sell refurbished items which are provided with months-long service guarantees. We will open 4 new factories in Aba and PHC to ensure we can keep supply.

If you are a real engineer (not the paper type), we have jobs for you. Our engineers tear down phones, air conditioners, electric irons, generators, etc and get them back to near-full life. The business has grown from 3 people to more than 250 now and we expect it can hit 2,000 staff by early next year. Ugoji Harry is executing well.

Learn more about Egoras and how we have combined fintech and engineering in one company here

The Egoras’ Business Model And Opening A New Store

Welcome Pearl Recycling to Tekedia Mini-MBA

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Through a partnership with the “Women Entrepreneurship for Africa” (WE4A) in collaboration with European Union (EU), the Organisation of African, Caribbean and Pacific States (OACPS) and the German Federal Ministry for Economic Cooperation Development (BMZ), and implemented by the E4D programme of the Deutsche Gesellschaft fuer Internationale Zusammenarbeit (GIZ), SAFEEM and the Tony Elumelu Foundation (TEF), Tekedia Institute celebrates many African women entrepreneurs.

We are super-excited that through this partnership, Pearl Recycling under the leadership of Olamide Ayeni will join the next edition of Tekedia Mini-MBA on a full scholarship.

Nations rise when pioneering entrepreneurs emerge. We see these entrepreneurial leaders as part of that ascension for Africa. Welcome to Tekedia Institute.

Defection: Like Dave Umahi, Court Rules in Favor of Ben Ayade of Cross River State

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Days after the Court of Appeal in Enugu dismissed the suit challenging Ebonyi State governor, Dave Umahi and his deputy, Kelechi Igwe’s defection to the opposition All Progressive Congress (APC), party from the People’s Democratic Party (PDP), the Federal High Court in Abuja has delivered the same judgment in a similar case involving Cross River State’s governor Ben Ayade.

On Thursday, the Court dismissed a suit by PDP seeking the removal of Governor Ben Ayade of Cross River State for defecting to APC. In his ruling, Justice Taiwo Taiwo held that a governor cannot be sacked on account of defecting from the political party on whose platform he was elected, to another.

The PDP had sued Mr Ayade and 20 state legislators, its former members, over their defection to the All Progressives Congress (APC) in May 2021.

The ruling had been repeatedly postponed as the High Court was waiting on the outcome of Umahi’s case at the Appeal Court.  The High Court had concluded the argument from the parties’ legal representatives on Wednesday.

The PDP’s lead counsel, Emmanuel Ukala, a Senior Advocate of Nigeria (SAN), had argued that although Umahi and Ayade’s cases look similar, they’re differentiated by facts and circumstances.

According to the counsel; “the reliefs in the Court of Appeal judgment were three, and different from the reliefs in this case.”

“The core issues we are asking this court to interpret were absent in that case of the Appeal Court.

“My Lord, a defection constitutes a vacation of office by the governor and his deputy. This decision (of the Court of Appeal) cannot stand as a judicial precedent in deciding this (Ayade’s) matter,” Ukala said.

In their defense, the APC lawyer Mike Ozekhome, said “the entire reliefs and questions for determination in this case before the court are the same” as the subject matter of the case at the Court of Appeal.

Ozekhome, SAN, argued that defection is not grounds to remove a governor and his deputy who had taken the oath of office.

Citing Section 40 of the Nigerian constitution, he told the Court that Ayade exercised his right to freedom of association as enshrined in the Nigerian constitution by joining the APC.

Relying on the recent decision of the Court of Appeal in Enugu, Justice Taiwo said that Sections 180, 188, and 189 had already stipulated how an executive head could be removed from office.

He held that “The facts and circumstances of this case are similar to that of the Court of Appeal in Enugu.”

The judge, therefore, raised some questions for determination: “Are votes cast in an election transferable to another party? Is defection tantamount to the transfer of votes? Does the law permit such transfer? Can such transfer count or be disallowed with attendant consequence? etc,” he asked.

Justice Taiwo explained that the Court’s responsibility is to interpret law and not to make law, urging the National Assembly to amend the Constitution to address the issue of governor’s defection to another political party.

With the immunity clause, which protects governors from being sued, the only way a governor can be removed from office is through impeachment by the state assembly.

But Justice Inyang Ekwo had attempted to change the status quo when he ruled last month that votes belong to political parties not individuals, thus sacking Umahi from office over his defection to the APC. The judgment has thrown the Nigerian political landscape into disarray.

Ayade’s future was uncertain after Justice Ekwo’s judgment. His fears were compounded by the Court’s earlier ruling that sacked members of the Cross River State Assembly who defected with him. The PDP had asked the court to declare the seats of the 20 lawmakers vacant over their defection to APC.

In March, Justice Taiwo granted the plaintiff’s prayers by sacking the Cross River State House of Assembly Speaker and 17 of his colleagues alongside two members of the House of Representatives for defecting to the APC.

The judge held that “there (were) no justifiable reasons” for their defection.

The judgment exonerating Ayade from any wrongdoing has thus augmented the precedent set by the Court of Appeal. This means that Umahi, who still has a pending case at the Court of Appeal over his defection, may have a favorable judgment.