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Home Blog Page 5521

“Investing in Africa’s Next Unicorns” – A Tekedia Capital Public Lecture [Video]

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Tekedia Capital hosted a public lecture on Oct 16 titled “Investing in Africa’s Next Unicorns – A Tekedia Capital Playbook”. The video recording is provided below.

Tekedia Capital runs an investment syndicate. We pool resources from citizens, companies, investment clubs, etc and co-invest in tech-anchored startups. The next investment cycle begins on Monday Oct 18 2021 when our new deal flow will go live in our portal. Those who join Tekedia Capital will have access to the startups.

To join Tekedia Capital, go here ($1,000 or N550,000 naira). Once you join, we will share our deal flow with you; the next investment cycle begins tomorrow (Oct 18, 2021).

Reviewing Nigeria’s Executive Order 5

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Nigerian leaders

During his first term in office, President Muhammadu Buhari of Nigeria signed an executive order, prohibiting issuance of visas to foreign workers or experts whose skills are readily available in the country.

The proclamation tagged ‘Executive Order 5’, which was endorsed precisely on 5th February 2018, was targeted to improve local content in public procurement in regard to science, engineering and technology in general.

It was expected to promote the application of science and technology with a view to achieving the country’s development and innovation goals across all sectors of the economy.

The president, pursuant to the authority vested in him by the Nigeria’s 1999 Constitution, as amended, ordered that all procuring agencies shall give preference to Nigerian companies in the award of contracts in accordance with the Public Procurement Act 2007.

The order, however, stipulates that in a situation where the required expertise is lacking within the country, procuring entities shall grant preference to foreign firms with a “demonstrable and verifiable plan for indigenous development prior to the award of such contracts”.

The document entitled ‘Presidential Executive Order 5 for planning and execution of projects, promotion of Nigerian content in contracts concerning science, engineering and technology components’ further directs Ministries, Departments and Agencies (MDAs) to engage indigenous professionals in the onward planning, design and execution of national security projects.

It’s always wholesome and ideal to consider the feasibility study of any introduced policies or whatever policy that’s being awaited, hence that of Executive Order 5 wouldn’t be exceptional if the government is really prepared to achieve its goals.

It’s noteworthy that Nigerians as a people celebrated profusely in regard to the emergence of the said proclamation. However, over three years after the lofty pronouncement, the order is yet to be fully implemented.

Let’s dissect some key parameters that are likely to pose as limitations to the policy. It’s worth noting that the Executive Order 5 is silent regarding the foreign skills already domiciled in Nigeria. As I reacted when it came on board, an order of this kind requires additional clauses to make it more elaborate and understandable for thorough effective implementation.

Since the order is reportedly meant to promote local content, I’m keenly interested in knowing what becomes of the fate of the foreign firms established anywhere across the federation. The citizenry need to be intimated on how the new tech policy would affect foreign experts – either individuals or entities – that are already practising in the country.

Are they going to be segregated whenever any procurement process is ongoing or ought to be treated as equal to the indigenous professionals? If the former is to be the case, then it simply means the order is equally asking them to vacate their stay in Nigeria.

If the government is truly keen in improving as well as promoting the country’s local content, some clauses must be stated clearly in the Executive Order 5. I’m not anywhere advocating for outright sack of foreign content domiciled in the country but it’s pertinent to make any policy self-explanatory and transparent, hence the need for further review.

Another amazing part that caught my attention in the order was where it’s stipulated there must be a plan for indigenous development in a situation where the needed skills aren’t available “prior to the award of such contracts”.

That means, before any contract would be awarded to a foreign contractor as a result of lapse, there must be tangible plans put in place towards addressing such lapses or loopholes. The concerned authorities must take into cognizance that the actualization of such policy is far-fetched if the required mechanisms didn’t follow suit.

I won’t hesitate to enquire about the authority that’s expected to remedy the system when the aforementioned situation arises. We need to be told the entity that would be saddled with the responsibility of developing the lacking indigenous skills. I’m, therefore, asserting that if the government failed to set up a special agency strictly in this regard, such an order is already dead on arrival.

We have witnessed circumstances where a sitting government preferred to merely tender a certain policy without consequently coming up with the needed mechanism toward adequately implementing the document as well as actualizing every clause enshrined in it. It seems this is one of them.

The fact remains that Nigeria’s tech sector is severely bleeding, thus seriously in need of an overhaul. The country’s leadership must comprehend that for such a total turnaround to be realized, the leaders must wear the required political will like clothing.

As much as I invariably pick interest in such technologically-oriented policies like the Executive Order 5, I don’t find it difficult to analyze the prospects and encumbrances surrounding them.

I want to state categorically that the order in question is a welcome development and a step in the right direction considering how far and how well the country’s technology at large has fared thus far. But there’s a compelling need for its feasibility study to be drastically considered if it’s born out of genuine intention.

In view of this, the Buhari-led administration is urged to involve reliable and competent hands and also consult the cognoscenti with a view to ensuring apt implementation of the order.

It’s not anymore news that those who are well imbued with technology-related knowledge have for decades now been sidelined, hence leading to brain drain which is currently affecting Nigeria’s economy negatively. This aspect needs to be holistically addressed headlong.

It’s therefore inconsequential to enjoin Mr. President to ensure the needful is done towards making the policy effective as well as sustaining it in the long run. 

With $230 Billion Net Worth, Elon Musk Becomes Richer than Bill Gates and Warren Buffett Combined

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A few days after Elon Musk reclaimed his spot as the richest man on earth, the South African-born entrepreneur has added a new financial accolade to his name.

Per CNBC, Musk has entered rarified air in the world billionaire rankings as he is now worth as much as fellow billionaires Bill Gates and Warren Buffett combined.

As of Friday, Musk’s net worth was $230 billion, eclipsing Gates who sits in fourth place with $130 billion and Buffett who is at the 10th place with $102 billion, according to Bloomberg Billionaires Index.

Responding to a “Musk is now richer than Bill Gates and Warren Buffett combine” tweet on Friday by Matt Wallace, a Dogecoin enthusiast, Musk said “hopefully enough to extend life to Mars” (talking about his wealth.)

Musk and his co-billionaire, Jeff Bezos, are leading the evolution of commercial space travels in an epic rivalry with their various space companies. Bezos, who is now the chairman of Amazon, resigned his position as the CEO in July to concentrate on his dream space adventures using his company Blue Origin. Musk also owns SpaceX, the only space company now offering orbital services.

Bezos had held the first position in the world billionaires’ index since 2007 before Musk briefly overtook him for the first time in January when his net worth hit $185 billion. Musk’s fortune is largely tied to his electric car company Tesla that has become a top choice around the world, including China, which is the leading electric vehicle market.

Environmental concern has triggered a global push backed governments to curtail vehicles’ carbon footprint, thus igniting a shift to electric vehicles. Musk has added more than $60 billion to his fortune this year as EV preference buoys Tesla stock to strong performance augmented by a recent share sale at SpaceX which valued the company at $100 billion. The SpaceX deal added $11 billion to Musk’s net worth, according to Bloomberg.

The surge in Tesla and SpaceX shares saw Musk’s fortune rocket, eclipsing other billionaires like Gates and Buffett who had previously held the mantle of world’s richest persons.

Both Bezos and Gates saw their wealth reduced after their divorce, which took a significant part of their fortune, leaving a close gap between them and Musk who was ranking lower at a time. Bezos is still the second-wealthiest person on earth with a $191 billion net worth.

Gates and Buffett’s wealth decline has been largely attributed to their charitable works. With their philanthropic organizations, the duo has given out billions of dollars that would have guaranteed them top positions in the billionaire index, to charity.

Unlike Gates and Buffet, Musk has been criticized for being closefisted with his wealth, a criticism he countered by saying he prefers to remain anonymous when giving away money.

Musk has been vocal about his goal to create civilization on Mars, a cause he is currently pouring his fortune into. But as space exploration materializes, Musk gets richer. Tesla is leading a technology-driven electric vehicle revolution with massive growth potential, likewise Starlink, the satellite internet wing of SpaceX – which is expected to be largely embraced globally in the near future – all poised to slingshot Musk further ahead in the billionaire index.

We Want To Fund A Startup in “Maritime Trade and Logistics”

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If you have experience in maritime shipping, I want to support a team in Nigeria with funding to build a startup in maritime trade & logistics. As AfCFTA moves to the next phase, this startup will do what logistics companies do on land in the maritime area.  I have struggled to see startups and now forced to have an open call. In the phase 1 of the playbook, here are services the startup will build-up:

  • Freight shipping: automating booking and deployment
  • Customs services and clearance: you clear goods, for both import and export
  • Trade financing: you finance trade by helping shippers grow
  • Land/Air haulage logistics: you integrate with partners to enable land/air logistics
  • Integrate into PAPSS (Pan-African Payment and Settlement System) via Afreximbank and a digital bank in the United States; we will provide all contacts needed.

We expect you to digitize the process with technology that will help tracking at scale. More so, you will launch in at least 6 ports in Africa with correspondence partners in China, Europe and the United States; we will provide those networks. We will help you join WCA World.

Email Tekedia Capital capital@fasmicro.com in a group of at least 3 with your capabilities. We will give you funds to go and build if we like your team. Do not worry about people copying the ideas; I never worry about those. Everyone knows that Africa has no water, electricity, etc and yet no one has copied to provide them well. The key is execution – and we think we have a great process.

Please share with your networks – if we get this right, we can quickly create dozens of jobs and fix a huge friction across Africa.

Learn more about Tekedia Capital here.

Uplifting Nigeria’s Agric Sector Amid Food Day Commemoration

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October 16 each year remains World Food Day. It suffices to say that today, the world over is celebrating the 2021 edition of the worthwhile event.

It is a day of action dedicated to tackling global hunger. The focus of the day is that food is a basic and fundamental human right. Yet, in a world of billions, over 800 million people worldwide live with chronic hunger, 60% women and almost five million children under the age of five die of malnutrition-related causes every day.

Due to the inevitable impact of food on mankind, the World Food Day (WFD) was established during the 20th General Conference of the Food and Agriculture Organization (FAO) of the United Nations (UN) in November 1945.

During the conference, all the Member States of FAO resolved that October 16 each year should be commemorated as World Food Day. The day was meant to coincide with the anniversary of the founding date of the organization – FAO.

In the history of mankind, no one has ever boasted of living a healthy life without adequate food on his/her table. This implies that a healthy living is not unconnected with consumption of the required dietary.

Food, which remains one of the three basic needs of man on earth, can only be acquired or guaranteed via thorough participation in agricultural practices. No doubt, agriculture is an integral part of human existence considering that it is the only means that can guarantee the three paramount needs of man, which are: food, clothing and shelter.

Obviously, several societies in the world depend solely on agriculture as regards Internally-Generated Revenue (IGR), and creation of employment opportunities. Such societies jealously safeguard it because they acknowledge it is the most affordable and accessible source of revenue within the reach of man.

This is a clear indication that agriculture can function as a revenue source as well as means of survival. Needless to assert that sustenance of agriculture remains one of the prime desires of any rational and vision-oriented society in existence, and Imo wouldn’t be an exception.

Owing to its challenges, including lack of access to mechanized farming, undesirable topography, poor climatic condition, unavailability of land, poor soil texture, and insufficient funds, et cetera, many prospective farmers in most developing nations, like Nigeria, have over the years lost interest in agriculture, thereby endangering the socio-economic status of the affected nations.

It’s not anymore news that lack of participation in either subsistence or commercial farming among the populace of a certain country invariably leads to malnutrition and tremendous decline in the Gross Domestic Product (GDP) of the country.

The most devastating aspect of apathy in agriculture is the one observed amongst the youth as a result of their eager and unending quest for non-existing white-collar jobs. To say the least, the ongoing lack of enthusiasm among the young ones, in the area of farming, contributed immensely to the current scarcity of food in Nigeria.

History indicates that between 2011 and 2013, a total of eight hundred and forty-two (842) million individuals, or about one in every eight persons in the world, were estimated to be suffering from chronic hunger. This signifies that the said set of people was not regularly getting enough food for themselves to carry out their active life activities.

It’s not anymore news that in recent times, climate change has remained one of the greatest challenges in this part of the world. One of the biggest issues related to climate change is food security. The world’s poorest – many of whom are farmers, fishers, and hunters – are being hit hardest by higher temperatures and an increasing frequency in weather-related disasters.

At the same time, the global population is skyrocketing and is expected to reach about 9.6 billion by 2050. To meet such a heavy demand, agriculture and food systems will need to adapt to the adverse effects of climate change and become more resilient, productive, and sustainable. This is the only way we can ensure the general wellbeing of ecosystems and rural settlements, as well as reduce emissions.

Growing food in a sustainable way means adopting practices that produce more with less input, in the same area of land, and use natural resources wisely. It also means reducing food losses before the final product or retail stage through a number of initiatives, including better harvesting, storage, packaging, transport, infrastructure, and market mechanisms, coupled with institutional and legal frameworks.

The FAO is using this period to call on countries to address food and agriculture in their climate action plans and invest meaningfully in rural development in their respective jurisdictions.

So, as Nigeria joins the global community to celebrate the 2021 annual World Food Day, I urge the government to be more proactive than being reactive with a view to ensuring that the bane of the country’s agricultural institution is thoroughly addressed.

It’s appalling that presently the acclaimed Africa’s giant can no longer boast of crops like cocoa, rubber and oil palms that used to be the pride of the country during the post-colonial era, owing to lack of maintenance culture and relegation of the existing healthy policies to the background occasioned by overdependence on mono-source of economy, the oil and gas sector.

There is indeed a compelling need for the governments at all levels to provide the needed support for any genuine prospective farmer in their respective jurisdictions, such as soft loan with zero interest rates, arable land, enabling environment, and wholesome policies, as the case may be.

The government should equally subsidize the prices of farming machinery/equipment to enable every commercial farmer in the country to purchase them without much ado. In the same vein, the ongoing restriction of importation of goods and services into the country must be duly strengthened and intensified by the apt authorities such as the Customs Service, among others, toward increasing the level of demand on locally-made commodities.

There ought to also be an increased awareness among the populace in various quarters on the need to patronize indigenous commodities at all times. This can be actualized by working thoroughly on their mentality.

On their part, the farmers ought to, from time to time, validate the membership of all their members, and also encourage the upcoming ones to register, to enable the government or any concerned corporate body to easily assess them as well as ascertain the genuineness of anyone who claims to be a practising farmer.

They should also sensitize their members on the need for specialization towards boosting production. Farmers need to concentrate on a particular crop or livestock farming, as the case might be, to enable them to obtain a desirable outcome during harvest. After creating a sound foundation, any farmer can in the future consider practising mixed farming.

Governments at all levels ought to as well endeavour to own and manage various mechanized farms with a view to supplementing the privately owned ones. They mustn’t leave everything for the private sector, in order to ensure adequate price regulation on the goods and services. Such measures would also intensify the ongoing diversification mantra, thereby boosting massive employment opportunities for our teeming youths.

In view of this, every agriculture ministry is expected to boast of staff that are qualified in various agricultural disciplines, rather than professionals from other areas. And, every staff member must be prepared to go to the field.

Above all, there’s a compelling need for Agricultural Science to be studied by every high school student in Nigeria as a core subject, and equally sit for it during their School Certificate examinations. There’s also a need for all the tertiary institutions in the country to introduce Agric Science in their schools’ curricula as a general course for every first year student; there would be a need for a formidable legal backing towards ensuring the effectiveness of this very measure.

Inter alia, the government and non-governmental organizations, among other stakeholders, should endeavour to continually grant bursary to the undergraduates studying Agric Science or any agric-related discipline towards encouraging prospective ones. Hence, the various relevant civil society groups operating in the country are required to solicit for this on behalf of the students.

All in all, viable and formidable policies need to be formulated and consequently kept alive to ensure apt implementation of the outlined measures. A policy is like a tyre that facilitates the needed wholesome movement of a vehicle.

Every relevant authority or stakeholder in the country must henceforth be ready and determined to sacrifice now in a bid to enjoy forever.