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Tekedia Institute Partners Youth Up on Tekedia CollegeBoost

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CollegeBoost is a management innovation program which is structured to help university students master the mechanics of markets and management systems. Tekedia CollegeBoost mirrors Tekedia Mini-MBA, but it is more streamlined. It is open for schools, alumni groups, students unions, etc. It has two modules:

  • The Innovation of Firms (Part A): Four weeks
  • The Wealth in Nations (Part B): Four weeks

Youth Up, a non-profit, is mobilizing its student-members across Nigeria for this. Connect with Faith Nwaobia and other members of Youth Up to sign up. Tekedia Institute handles the training but all other matters are under the control of the NGO. Other Tekedia programs are here.

Tekedia Academic Programs

Reflections as Bordo Women Buy Car to Convey Pregnant Women to Hospitals

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A group of women from Jigawa State have taken it upon themselves to provide facilities that will secure the lives of pregnant women and their unborn children. No, they did not build hospitals in their community. And yes, there was no hospital in their village. These women organised themselves, contributed money for months, and bought a car that will convey pregnant women to hospital when they enter labour.

According to BBC News (Pidgin) of 10 September, 2020, women of Bordo, a secluded village in Jigawa State, came together and bought a car, which will convey them to hospitals when labour commences. These women performed this feat because they always faced transportation problems when they needed to get to the nearest hospital in Jahun town, which is about 29km from Bordo. It was said that most of these Bordo women delivered their babies en route the hospital because they couldn’t get there on time. The report revealed that the bad state of the road that leads to the village and the fact that it is secluded hinder access to proper means of transportation into and out of the village.

In case you are wondering how these women were able to raise money to perform this great deed, the chief organiser and implementer of this feat, Malama Halima Adamu, revealed that every woman in the village was compelled to pay the sum of one thousand naira every month towards the project. When their contributions reached one million naira (N1 000 000), they used it to buy the car.

That is not all. The women have set out modalities for using the car. According to Malama Halima, any man, whose wife goes into labour, will have to pay the sum of two thousand naira (N2,000) in order to enjoy the services from the car. Out of this money paid, one thousand five hundred naira (N1,500) will be used for fuelling the car while the remaining five hundred naira (N500) will go into the purse of the association and be used for the car maintenance. However, the BBC did not state whether the women have a standby driver that will make sure they don’t get stranded when they enter labour because of lack of a capable driver.

Anyway, we have to say kudos to these women for thinking up and implementing this wonderful initiative. They realised the problems facing them and decided to take the bull by the horns. It must have been uneasy for them to pay this money but they went on to do it because it is for their own good. This is a lesson for us all: don’t wait for the government to solve your problems because they will not.

That’s by the way. The story of the Bordo women calls to mind the inadequacy of health facilities in our country. I was made to believe that Primary Health Centre (PHC) is supposed to exist in every village in this country. But from the look of things, most of these centres only exist on papers. But then, is there not supposed to be a supervisory body that goes round to supervise these centres and make sure they are functional? These centres, even the ones that exist only on paper, have nurses posted to them but they don’t go to work. These centres are also meant to give immunizations and handle children’s ailments, but they don’t do them even though drugs were allocated to them. It will then be appropriate if we ask questions on what happened to the drugs allotted to these non-functional centres. Honestly, a lot of things are wrong with our country.

I hope the Jigawa State government, the senator, the house of representative member, house of assembly member, local government chairman, councillor, ward leader, and all the people that claim to represent the people of Bordo and speak for them, should cover their faces in shame. Yes, they should be ashamed of themselves that in this 21st century, Bordo does not have even a PHC, where women can go to have their babies. They should be ashamed of themselves because they always show beautiful pictures of projects they do while people continue to suffer. They should be ashamed of themselves because it would have cost them nothing if they dipped their hand into the money they claimed for their citizens to provide a good means of transportation for them. Now, the whole world has heard about a village in Nigeria, where women have to contribute money to buy a car so that they can stop giving birth on the road to hospital.

I say another big kudos to these women. Since they have provided themselves with means of transportation during child delivery, they should consider providing another means of transportation for other activities that will take them out of their village so that commercial activities can thrive there. Maybe the men will do it this time.

However, the achievement of the women of Bordo has called us to action. It has made us understand that we should provide facilities that will alleviate our sufferings. If every village in this country can come together, the way Bordo women did, to set up poverty alleviation programmes for themselves, it won’t be long before poverty becomes a thing of the past in our country.

The Konga’s Profitability Tweet

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Sim Shagaya is correct with this tweet but interestingly the Konga of today is totally different from the one he ran.  So, let us not extrapolate that the old Konga could have gotten to this evolving destination.  The Konga which I posited should be sold, then, is totally not what we have now. The current Konga runs on a hybrid model, taking advantage of many physical stores across Nigeria through the Zinox Group. 

Those stores help reduce marginal cost and improve unit economics. So, it is key we do not muddle it up with assumption that ecommerce is suddenly becoming profitable because Konga is. The fact is this: today’s Konga is not a pure play ecommerce company. It is a hybrid physical business with a super-online order placement portal. Yes, it is NOT asset-light, and certainly pays many real estate bills. 

Simply, if the money is in the physical space, why must we build a business that is exclusively online? Unless for pride and fancy, it makes no sense. The new Konga understands this and is working to enter the race where the opportunities abound. With these stores, the new Konga will crash its marginal cost and that would help it to take advantages of the online elements to deepen its competitive capabilities in the physical. As it does this, Konga would become the most respected retail chain in Nigeria.  There is no other company that would come close because what we are witnessing is the birth of a new category and Konga will be the undisputed category-king. For years, Nigeria has failed to create a retail chain: Konga is bringing one with the unbounded and unconstrained capabilities of the internet fused with atoms of stores across Nigeria.

Read this piece I wrote in May 2018; it is playing as most expected when they began to invest in those physical stores. In Tekedia Live today, our Faculty explained better (the video below).

The Brilliance of the New Konga Strategy

The Wema Bank’s ALAT Missed Opportunity

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When Wema Bank launched ALAT, I was among those who praised the regional bank for the call. But I quickly posited that ALAT would not live its full potential under the Wema brand. Yes, I personally do think that Wema made a mistake by keeping ALAT inside the bank. In 2018, I wrote, “Wema Bank was established in 1945. It has about 1.5 million customers in Nigeria. ALAT was established in 2017 and has brought NEW 180k customers to the bank” within 8 months. But that momentum could not continue at scale as new species of competitors emerged, stopping the alert! Provided Wema Bank has not changed its name to ALAT, by now, as I had postulated, I will say the bank lost a huge opportunity on ALAT, and if they do not change strategy, ALAT will not alert that future. It is nearly hopeless to run “two banks” under one building.

ALAT is not necessarily a bank product because the creators took the bank out of it. That means it is a startup which is not designed to make money immediately for the bank. Just like startups can operate for years at losses provided they are adding customers, ALAT wants to do just that. So, because it was not structured to bring immediate revenue, it is not relevant looking for one. What you look for is the capacity to bring new customers to the bank: 90% of its users are new to the bank. That is significant.

These numbers are significant because the implication is that ALAT is driving growth in Wema Bank. Wema Bank has about 1.5 million customers and hopes to push the number to 3 million through ALAT by 2020. Within 8 months, they have 200,000 on-boarded. My focus is not really the 200,000 customers in ALAT but the fact that Wema is attracting new people into Wema: “with just 10% of our users being existing @wemabank customers”. This is significant for the relatively small bank. Getting 90% of new customers through ALAT is very great. It would have been bad if it was only moving current customers to ALAT. So, ALAT offers growth to the bank

So, there is no issue of helping Wema Bank improve revenue immediately. They did not call it Wema Bank App; they called it ALAT. That strategy is very significant: they want to create a new business possibly from the bank which can appeal to the youth. And they are succeeding: they moved from 16th position to 7th in youth attractiveness within a year.

[…]

See the numbers: Wema Bank was established in 1945. It has about 1.5 million customers in Nigeria. ALAT was established in 2017 and has brought NEW 180k customers to the bank, about 12% of the total bank customer base. Wema Bank is a relative small bank but if ALAT can add 180k NEW customers within 8 months it is a home run. For 72 years, the bank got 1.5 million customers; about 21k per year on average. If it can get something that gives it 180k in 8 months, it can party.

Many banks continue to spin out some fintech ventures. Santander, the Spanish banking giant, has announced that its fintech venture unit is to be spun out and will be managed more autonomously going forward, Techcrunch reports. That is a very good call.

Santander, the Spanish multinational banking giant, is announcing that its fintech venture arm is to be spun out and will be managed more autonomously going forward.

Previously known as Santander InnoVentures and established in 2014, the VC is being re-branded to Mouro Capital. It will continue to be headed up by general partner Manuel Silva Marti?nez, who joined InnoVentures five years ago and has led the fund since 2018, and senior advisor Chris Gottschalk, who joined from Blumberg Capital last year.

The “Missed Opportunity”

I wrote this in the comment section below…but reposting here.

Dare, there is no intention to make ALAT look bad. I think I write in an unbiased neutral way in a professional academic mindset. The missed opportunity here remains that Wema Bank Plc is worth about N20 billion which is roughly $52 million – https://www.bloomberg.com/quote/WEMABANK:NL . The top leading fintechs in Nigeria are all above that. So, if ALAT + Wema give you $52M, it means ALAT is not even worth up to $52M. Possibly, a separate ALAT could be worth $100M if it executed, giving investors better returns. I do not care what KPMG wrote, I am focusing on what matters: returns to investors. ALAT has not changed that for WEMA and that is a missed opportunity.

Wema Bank on ALAT Now