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Home Blog Page 5811

Ghana WINS Twitter

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It was not supposed to be this way: “Today, in line with our growth strategy, we’re excited to announce that we are now actively building a team in Ghana. To truly serve the public conversation, we must be more immersed in the rich and vibrant communities that drive the conversations taking place every day across the African continent.” People, Ghana is Twitter Africa’s headquarters!

Lagos state is bigger than Ghana’s economy and across all domains most would have expected Nigeria to be Twitter’s destination. But as I have written here – our technophobic attitude of banning things will influence decisions by many leaders. People expect regulations to deal with issues, and not absolute ban. The cryptocurrency ban diminished the perception that Nigeria has the readiness to handle complexity in its markets.

Ghana, Kenya, and other African countries have not collapsed because of cryptocurrency. And with an apostle like Twitter CEO, Jack Dorsey, Nigeria disqualified itself for those good jobs and tax naira that Twitter would have brought to the nation. Would you expect Tesla’s boss to use Nigeria to serve its West African market in future? Your first leg during a dance should reveal how ready you are!

I want to congratulate Ghana for its diplomacy. It is positioning itself the way Israel has positioned itself to serve the United States. In Israel, you do not build for the nation, rather, you plan from day 1 on how to reach the American market. Today, most of Ghana’s companies are focused on the Nigerian market – and they are making real progress.

If you check some of the jobs, they are designed for the Nigerian market.

Nigerians Kick As Twitter Announces Ghana As Its Africa’s Headquarters

Nigerians Kick As Twitter Announces Ghana As Its Africa’s Headquarters

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Twitter founder and CEO Jack Dorsey on Monday announced Twitter presence in Africa. The bird app, which has been increasingly embraced by Africans was operating outside the continent.

To change that and increase its growth potential in Africa in line with its mission to increase the number of people who feel comfortable participating in public conversation, the social media platform is setting up its first African office.

“Today, in line with our growth strategy, we’re excited to announce that we are now actively building a team in Ghana. To truly serve the public conversation, we must be more immersed in the rich and vibrant communities that drive the conversations taking place every day across the African continent,” Twitter announced in a blog post.

However, Ghana as the choice destination for Twitter’s first office in Africa has not gone down well with Nigerians, who are top users of the app in the continent.

Others believe that the present Nigerian administration is to blame for Twitter’s decision, given its handling of tech developments in Nigeria.

Twitter said Ghana was chosen because of her democratic tendencies, support for free speech and the African Continental Free Trade Area (AfCTA).

“As a champion for democracy, Ghana is a supporter of free speech, online freedom, and the Open Internet, of which Twitter is also an advocate. Furthermore, Ghana’s recent appointment to host The Secretariat of the African Continental Free Trade Area aligns with our overarching goal to establish a presence in the region that will support our efforts to improve and tailor our service across Africa,” it said.

Although Twitter mentioned AfCTA as part of the reasons it chose Ghana, it has more to do with the country with more freedom of expression and tech viability.

Nigerian government has been severally caught in attempts to muzzle free speech. The notorious social media bill, which was introduced in a bid to curb dissent voices on across social media platforms got global attention, thus sending the intolerant message that has put Nigeria on the spotlight on freedom of expression.

Government’s stance on free speech was further exposed during the End SARS protest, which Dorsey supported, as security agents and other government’s institutions clampdown on protesters. A former presidential aspirant under the ruling All Progressive Congress (APC), Adamu Garba, filed a suit against Dorsey for using Twitter to incite insurrection in Nigeria. Although the suit has been withdrawn, it is believed to one of the reasons Twitter does not consider Nigeria a suitable destination for office.

Nigerians said that given the government’s record in handling dissenting voices, it wouldn’t think twice to shut down Twitter’s office whenever it feels the social media platform is being used to attack the government, if it is situated in Nigeria.

Government’s recent decision to prohibit financial institutions from cryptocurrency transactions, is also fingered to be among the reasons while Dorsey, a famous bitcoin fan, chose to ignore Nigeria.

Apparently, Dorsey had been in love with Ghana. In 2019,  when he visited Africa, the tech guru who also doubles as the CEO of Square, a payment platform also founded by him, hinted on staying in Africa, Ghana precisely for at least three months. He has touted the West African even before the many actions of the Nigerian government made this decision such an easy one.

On his way out he had tweeted: “Sad to be leaving the continent for now. Africa will define the future (especially the bitcoin one!). Not sure where yet, but I’ll be living here for 3-6 months mid 2020.”

Although COVID-19 pandemic altered his plan to live in the continent, it didn’t stop his tech development plan for the continent, but it would not start in country that shows apathy for whatever he believes in.

The Central Bank of Nigeria’s Big N8.3 trillion CRR DEBITS

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It is big money – N8.3 trillion. And extra N5 trillion, you have the Nigerian budget fully funded. That is what the commercial banks were debited by the Central Bank of Nigeria (CBN) on the  apex bank’s Cash Reserve Ratio (CRR) policy. Yes, in 2020,CBN warehoused a staggering N8.3 trillion from banks, kicking the party up by 58% year-on-year, according to Nairametrics: “banks that fall below the CBN’s loan to deposit ratio requirement of 65% have the full weight of the CRR imposed on them.”

CRR is a tool which central banks use to control supply of money and manage inflation. Essentially, you use it to morph how much of their customers’ deposits are available to the reach of the banks. In other words, even though customers have deposited the funds, the apex bank does not make it available for banks to trade or invest with it.

In Nigeria, the apex bank sets  a loan to deposit ratio (LDR) which banks have to meet. The LDR defines how much loans are made by banks to its customers as a ratio of their total deposits. When the LDR number falls below the apex bank’s threshold, it debits the bank from the pool of its customer deposits to calibrate, and puts it within the threshold.

But interestingly, there is something happening here. The apex bank has been accused to be morphing this fund, and then using it to augment revenue shortfalls for the federal budget. As the Ways and Means financial invention becomes more popular, watch these debits to rise.  Of course, provided that the apex bank will provide the funds when the banks need them, for their customers, the economic structural impacts would be minimal.

The LDR threshold to stimulate lending is a great policy; hope it does not get blown by Nigeria’s search for funds! Simply, I am hoping that CBN is focused on its monetary policy and not using LDR/CRR to magically make funds available to the federal government to fund the budgets. Following that windy path would be extremely risky if suddenly those funds could not be returned for their original owners – the customers!

This table explains the breakdowns.

CRR Debits deducted from commercial bank deposits in 2020.
Source: Nairalytics Research.

 

Tekedia Mini-MBA Makes Week 11 On Mhagic for $60k Prize; Full Scholarships to 430 Students

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Tekedia Institute has made it up to  the 11th week of Mhagic Velocity, a talent competition with a reward of N25 million naira ($60,000). Hundreds of people and groups began this competition, and today only few are remaining. Mhagic Velocity is a 13-week in-app show. It features videos or pictorial upload of talents & skills, tasks, and weekly the most promising progress. Our talent: we make learning uncommon so that everyone understands!

Why Tekedia Institute Is Competing

Tekedia Institute wants to win the N25 million to offer full scholarships to Tekedia Mini-MBA for 430 African students. Tekedia Institute offers 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.

How To Support Tekedia To Win

  • Go here and register a free account, and then login – https://mhagic.com/login
  • Go here – https://mhagic.com/profile/tekedia . Do the following:
    • (1) Vote; 10 Naira for one vote or $1 for 30 votes
    • (2) Watch the  top 3 videos (only those count for the week)
    • (3) follow Tekedia
  • If you prefer mobile app; download Mhagic app, and find Tekedia by searching on the app Home with @tekedia

NB: If for any reason you find paying with the options hard, make a payment via any of the options here –https://tekedia.com/pay  and put in description and your Mhagic registered username. Once we receive, we will ask the Mhagic team to credit  that username to enable you to vote.

Contact:

Our contact: tekedia@fasmicro.com

Website: school.tekedia.com

The Tesla’s Organic Profitability And Power of Business Model

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How do you create a new basis of competition? How do you discover an orthogonal path, totally different from all the trajectories of your competitors? How do you move from building on speed to building on velocity, where that elemental direction associated with velocity is the pulse of market perception? The empires of the future must NOT just serve the needs and  the expectations of customers, but most importantly, serve their perceptions of the future. It goes beyond volume. It goes beyond balance sheets. It goes beyond assets quality. It is about building Organic Profitability.

Organic Profitability is a profitability system where products and services earn income throughout their lifespans. Generally, software solutions on subscriptions have an element of that. But most hardware solutions struggle. Once you pay for that radio, no extra money goes to the maker.

But one guy and his pals invented a new way of making hardware earn organically. Yes, Tesla is the world’s largest automobile company, not because it makes the most cars; it makes about 500k when Toyota ships close to 11 million yearly. But each of those 500k cars Tesla has made will likely earn income until they are decommissioned from roads. Yes, you buy Tesla, you have to pay some subscriptions for software, and when you sell that car, the new owner has to re-license the software.

Also, besides the software,  those cars keep earning as Tesla resells the emission credits it has gotten on them. The biggest innovation in Tesla is not the cars and batteries but a business model that delivers compounding leverageable factors, creating a virtuous circle of accelerating returns. Because of that, Tesla is bigger than the world of cars!

The most profitable unit in Tesla is selling emission credits, not cars. But for the emission credits business to thrive, Tesla has to make cars to earn those credits. Because it makes electric vehicles, it earns credits for not polluting the world. Then, it resells those credits to other car companies which make fossil-fueled cars to stay in compliance.

Think differently in your sector.