DD
MM
YYYY

PAGES

DD
MM
YYYY

spot_img

PAGES

Home Blog Page 5285

Flutterwave, now worth 4.4x of Jumia; Jumia’s Path to Success Is B2B Playbook with JumiaPay

6

Jumia has sparks but the marginal cost paralysis continues to affect the business. It is largely doing most things right now, but weaning itself of that high cost of sales and service remains the challenge which it must overcome. From TechCrunch.

Gross merchandise volume (GMV) at Jumia in the fourth quarter grew 20% year-over-year to $330 million, while revenue grew to $62.0 million, up 26% over the same time frame. Quarterly active users and orders rose 29% and 40% to 3.8 million and 11.3 million year-over-year, respectively.

The metrics improved thanks to Jumia’s Q2 2021 decision to push frequent purchases of fast-moving consumer goods (FCMGs) rather than larger-ticket electronics and appliances, and increased in sales and marketing spend.

Sales and advertising expenses at Jumia grew 159% year-over-year in the final quarter of 2021, a significant slowdown from the previous quarter, which posted a staggering 228% expansion in the expense category.

Yes, you read it well: “Sales and advertising expenses at Jumia grew 159% year-over-year in the final quarter of 2021, a significant slowdown from the previous quarter, which posted a staggering 228% expansion in the expense category.” When your cost of sales is growing in multiple faster than revenue, you have a real issue in that playbook.

Because of that, Jumia lost money in the quarter: “Turning to the bottom line, Jumia’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) loss was $70 million in Q4 2021. That’s a 107% year-over-year increase.” The impact is that the share price continues to struggle.

From the data which keeps coming out, quarter after quarter,  it does seem that focusing on B2B in the retail place may be the holy grail because of the marginal cost issue in Africa. Companies like Alerzo, TradeDepot, TradeLenda, and Farm365 which focus on B2B appear poised to achieve faster profitability than B2B counterparts.

If Jumia pivots to B2B retail and embed JumiaPay on top of it, it will rise. It has the largest merchant community, biggest pocket and can push this business forward. That Flutterwave is now worth 4.4x of Jumia shows Jumia needs a new playbook.

Comment on LinkedIn Feed

Comment : This is a case of being realistic in execution: how are you doing compared to other companies. They need a new playbook like you rightly suggested Ndubuisi Ekekwe with the numerous substitutes, low switching costs, low suppliers power, zero to no entry barrier basically makes their business a commodity one where the only differentiation is price.

I concur, they need to transition into the B2B space; Idumota is a signal that there is value in the B2B retail space. From my personal research there is also a problem businesses at Idumota face that would make this a game changer for Jumia.

How Fintech Boom In Africa Has Reshaped Payments And International Money Transfer

0

With the high influx of fintech companies in Africa, the region has become a global leader when it comes to mobile/online payments. According to GSMA, more than 45% of global mobile accounts belong to sub-Saharan Africa, taking the continent’s total to 481 million registered accounts. This was a region that traditionally suffered from limited access to formal financial services. The digital industry in Africa has experienced consistent growth since 2016 in terms of both the number of transactions and financing volume.

The African region now has more people who are using their mobile phones to make payments. One beautiful thing about these fintechs companies is that the boom has helped solve the issue that people in Africa often face when it comes to international payments. Mobile money now drives instant and secure payments in international remittance, healthcare, and salaries inclusive.

Years ago some countries in the African region could not receive money through PayPal, with Nigeria inclusive. This indeed posed a serious challenge in receiving funds internationally because Paypal was often the preferred choice of payment by those in Europe.

Traditionally, Africa’s e-commerce ecosystem has lacked suitable payment solutions to meet the demand for seamless transactions worldwide, which constrained the regions’ contributions to the global digital economy. Not too long, in 2021 one of Nigeria’s and Africa’s biggest Fintech companies, Flutterwave helped in solving this issue.

Flutterwave collaborated with global payment leader Paypal to enable Paypal customers globally to pay African merchants in the continent through the Flutterwave platform. This collaboration was indeed a huge sigh of relief for African merchants most especially freelancers as they could easily receive funds for their services rendered.

I am not surprised that Flutterwave has surpassed $3 billion in valuation and continued to take in billions because their collaboration with Paypal eliminated significant barriers that had previously hindered African consumers and businesses from the untapped potential of cross-border commerce.

Also, start-ups in the remittance space such as Paga, Sure remit, warn, etc have made it possible for African residents to receive money from overseas with ease. Today in Africa, digital transactions now make up the majority of money flows. They are gradually opting out of cash as the primary mode of payment.

The continent has indeed become a hotbed of financial technology and innovation. According to a report, the African continent now has over 473 active Fintechs. The fintechs raised about $350 million during the first quarter of 2020. The funding is majorly generated for projects like online banking, consumer credit checks, and innovative financial products and services. There are a whole lot of Fintechs doing exceptionally well, but I will just mention a few of them;

  • Opay; which is valued at $2billion.
  • Flutterwave; with the valuation of the company now standing at $3billion.
  • Chipper Cash; which is valued at over $2billion.
  • Timebank; A South African fintech that currently holds R2.8 billion in deposit balances.
  • Fawry; An Egyptian fintech that is currently worth $2billion.

Indeed there are many more Fintechs in Africa doing remarkably well and still, many more are emerging. This fintech boom has indeed helped reshape payments and international money transfers in the region. It might interest you to know that Africa is regarded as the world’s second-fastest-growing and profitable payments and banking market after Latin America, according to McKinsey’s study, and this means that the Fintech sector in the continent will continue to attract investors tapping into the increasing growth opportunities.

How Far With The Coalition Of South-East And South-South Legislators?

0

Sometime ago, the overall members of the Houses of Assembly in both the South-East and South-South geo-political zones in Nigeria marketed or paraded a seeming formidable association among them.

Having thought it wise to exercise a single voice, the members of the aforesaid legislative chambers came up with a ‘Coalition of South-East and South-South Legislators’.

As a matter of fact, the members of the said union ably led by the then Speaker of the Imo State House of Assembly, Rt. Hon Acho Ihim premiered their Parliamentary Conference six years back, precisely on 15th July 2016, with the theme ‘Alternatives to militancy and the harmonization of South-East/South-South grazing reserve proposals’.

During the conference, which was hosted in Imo State by the Imo House of Assembly, the astute lawmakers unanimously opposed the Grazing Reserves Bill, which was at the time lying on the floor of the National Assembly (NASS).

The epochal parliamentary sitting, presided over by all the speakers of the Houses of Assembly in the two zones, equally reached other resolutions regarding the ongoing militant attacks in the Niger-Delta region to include, to urge the Federal Government (FG) to reassess and revisit the performance of the Amnesty Programme, the United Nations Environmental Programme (UNEP) Report and the Hydrocarbon Pollution Restoration Project (HYPREP).

Furthermore, to urge: the NASS to ensure the accelerated passage of the Petroleum Industry Bill (PIB), the FG to enter into peaceful dialogue with the critical stakeholders in the region as well as review the ownership of Oil Blocks in the country towards giving at least 65% ownership to the Niger-Delta people as against the present situation where the people in question control barely about 10%.

In his address, Rt. Hon Ihim who as at then doubled as the Vice-President of the African Commonwealth Parliament (ACP), having disclosed how elated he was to be honoured as the leader of the body, categorically stated that the coalition among the legislators was targeted toward bringing dividend of democracy to the entire citizens of the region and Nigeria at large.

According to Rt. Hon Ihim, the members of the region had something in common, thus needed to operate as one body.

However, as at then, in my usual style, I made it clear that there were some fundamental and rudimentary factors the concerned lawmakers needed to acknowledge if truly they were out for business, but not business as usual.

No doubt, any right thinking or sane individual would boldly attest to the fact that the state legislators in question succeeded in making a history by coming up with this amalgamation. But it was pertinent to note that it wasn’t all about making history; rather, sustaining it.

Most people invariably strive towards making history, forgetting that it is unequivocally better not to make a history than to make one that wouldn’t stand the test of time.

What’s the essence of history if your unborn children cum grandchildren wouldn’t live to celebrate it? A good history made, is meant to be discussed by all and sundry many years after the eternal departure of the person(s) who made it.

To this end, we are expected to be more concerned with what becomes the fate of the awaited history rather than what we stand to gain on that very day the history would be made or be recorded in the Guinness Book of Record.

It was the great Irish Philosopher in the person of Edmund Burke that said ‘Those who don’t know history are destined to repeat it.’ In his words, Thomas Jefferson equally said ‘I like the dreams of the future better than the history of the past.’

Furthermore, on a very succinct note, Plato hinted ‘Poetry is nearer to vital truth than history.’ All these, summarily indicate that the beauty of life never lies in making history, but ensuring that the history made lives to withstand the future.

As if I reacted as a seer, it’s so unfortunate that presently, no one hears about the said coalition of lawmakers in the aforementioned region in Nigeria. The current picture is just exactly as I rightly foresaw, which necessitated the advice I tendered therein. But it’s so appalling that none of the counsels was heeded by the affected individuals.

It’s not anymore news that Nigerian leaders, particularly politicians, are very good and talented in coming up with laudable initiatives or policies, but usually encounter series of crises while implementing them or in the process of their sustenance.

It’s equally imperative to note that the resolutions made by the lawmakers during their first outing ended up being swept under the carpet. Such tradition, which is not peculiar to the said legislators, has so far caused enormous harm to the Nigerian polity in its entirety.

As a people, we are not bound to do something in order to receive thunderous praises from the onlookers; rather, ought to vigorously strive to bring a positive change that would surely attract unending applauses contrary to the anticipated temporary applause.

Thus, it’s about being real and endeavouring to face reality at all times. This was the reason, having appreciated that set of ‘impeccable’ lawmakers for coming up with that commendable historic coalition, I as well enjoined them to concentrate on the future towards sustaining the coalition.

I equally appealed to them, at the time, to extend hands of fellowship to their counterparts in the South-West geo-political zone with a view to boasting of a coalition of southern legislators, which undoubtedly would go a very long way to ensure the politicians in the region deliberate with one voice, just as it’s the case in the North. But it was also apparently given a deaf ear.

In the same vein, it’s noteworthy that the wives of the governors in the Southern region came up with a coalition joining all of them. But at the moment, absolutely nothing is heard about the association, which was then described by the onlookers as commendable.

Nigerian legislators ought to acknowledge at all times that they are representing a set of individuals known as constituents, hence must invariably live up to the expectations.

Update on the Jaruma’s case: Jaruma’s bail revoked to be returned to prison

0

The Upper Area Court sitting in Zuba, Abuja today  revoked the bail granted to the famous social media aphrodisiac dealer and self claimed sex therapist, Hauwa Saidu, alias Jaruma.

Recall that Jaruma had a face off with Actress Regina Daniels; what seemed to be a transaction went wrong but was not properly managed by the transacting ladies. This led to Jaruma coming to social media to backlash both Regina Daniels and her husband, Prince Ned Nwoko.

A petition was filed by Prince Ned Nwoko against Jaruma and Jaruma was arrested and charged on four-count charges  of ”defamation of character, criminal intimidation, injurious falsehood, and publishing falsehood to incite the public to hate against the ex lawmaker and billionaire businessman Mr Ned Nwoko. 

She was granted bail by the presiding judge, Ismail Abdullahi Jibril, on Friday, January 28, 2022 after she had spent about a week in detention at the Suleja prison.

The case was fixed for continuation of hearing today and when the case was mentioned at the upper area court, the accused; Ms Hauwa Saudu was not present in court neither was her lawyer or any of her representatives present in court for the continuation of the case. This led to the presiding judge, to revoke the bail and order for her re-arrest; to be rearrested and taken back to Suleja prison for detention.

The judge ordered that Jaruma should be rearrested and remanded at the Suleja Correctional Centre, until March 17, 2022, which is the new date the case will come up next in court.

Readers should take note that a judge has every legal standing and also a legal obligation to the public to revoke an accused person’s bail for the sole reason of the accused person’s failure to appear in court as at when required by the court.  An accused’s failure to appear in court after bail has been granted violates not just a court order but also constitutes contempt of court.

What this holds for Jaruma is that if she is rearrested and taken back to the detention Centre, the presiding judge will be reluctant in granting her bail again as she did not live up to her previous bail conditions which the primary of it is to always appear in court or send a legal representation to appear on her behalf whenever her case comes up in court as this what assures the court that the accused person has not disappeared or eloped to evade justice.

Any Unmarried Female Police Officer Who Gets Pregnant will be Sacked: Nigeria Police Rules

0
Nigeria police continues to struggle to maintain peace

The federal high on Monday upheld the Rule 127 of the Nigeria Police Force Rules (NPFR) which states that an unmarried female police officer should not get pregnant while still in active service, if she does, she will be sacked and can only be reinstated at the discretion and recommendation of the Inspector General of Police (IGP).

The Nigerian Bar Association (NBA); an umbrella for lawyers in Nigeria took the Police Service Commission (PSC), the Nigeria Police Force (NPF) and the Federal Government of Nigeria (through the Attorney General of Federation) to court, to question the illegality and unconstitutionality or otherwise of this rule 127 of the Nigeria police force rules (NPFR).

The NBA  submitted and prayed the court to hold that the said rule is discriminatory, thereby contradicting s.42 of the constitution and should therefore be reversed or amended.

This provision which is deemed discriminatory against the female gender is in total contradiction to the section of the constitution that specifically states that nobody should be discriminated based on his or her sex, religion, race et al. This is the magnanimous provision of section 42 of the 1999 constitution as amended as it read thus:

  1. (1) A citizen of Nigeria of a particular community, ethnic group, place of origin, sex, religion or political opinion shall not, by reason only that he is such a person:-

(a) be subjected either expressly by, or in the practical application of, any law in force in Nigeria or any executive or administrative action of the government, to disabilities or restrictions to which citizens of Nigeria of other communities, ethnic groups, places of origin, sex, religions or political opinions are not made subject; or

(b) be accorded either expressly by, or in the practical application of, any law in force in Nigeria or any such executive or administrative action, any privilege or advantage that is not accorded to citizens of Nigeria of other communities, ethnic groups, places of origin, sex, religions or political opinions.

(2) No citizen of Nigeria shall be subjected to any disability or deprivation merely by reason of the circumstances of his birth.

It was on this succinct reason that the Nigerian Bar Union approached the federal high court to have this rule upturned and the court should give an order reinstating every female police officer who have been sacked by the Nigerian police and the police service commission because they got pregnant while on active service. 

This section of the police rule became a subject of public debate after it came to the public knowledge when the police force sacked one Ms Omolola Olajide, a female police officer, in Ekiti State on January 26, 2021, for getting pregnant while unmarried; the NBA, decided to take up the matter as a public interest case to make the court reverse or amend the rule 127 of the police code of conduct as it by every means discriminates against unmarried female police officers.

The Federal High Court sitting in Abuja, on Monday, declined to invalidate Regulation 127 of the Nigeria Police Force which the NBA brought a motion to challenge and prayed the court to invalidate. The court held that the rule 127 is no way discriminatory and that it is there in the police rules as a code of conduct to upheld the moral sanctity of the police force and to ensure that those in the service are at all round well to ensure that they diligently discharge their duties.

His Lordship, Justice Inyang Ekwo further held that every female officer that signed up to join the police force was aware of the rule 127 before signing up and can withdraw whenever they deem it necessary as joining the police force is not and has never been mandatory.