Across human history, knowledge has remained a critical factor of production. Pythagoras  postulated that the world is nothing but numbers. Indeed, the numbers of nations are knowledge of nations.  Firms build nations.

Today, in markets in Africa and beyond, companies are faced with daunting challenges, and they need to  create new innovative ways to manage economic paralysis triggered by a pandemic, and cushion the effect of volatility and global uncertainty. Predicting that future will require creating it.

The upcoming Tekedia Mini-MBA, beginning on Aug 10 to Dec 3, will help nurture project champions and innovators, across industrial sectors, for that future. Combining flash cases, Tekedia Live, class notes and videos, we are preparing thousands on leadership ascent. 

Four months, online, and costs $140 or N50,000 naira. We also have Certificate courses on logistics, startups, innovation, etc. We hope you will join us, and get two of my books – Africa’s Sankofa Innovation, The Dangote System -, and a certificate course on Facyber free, along with great knowledge. 

Go for Knowledge, REGISTER.

The Certificate program is completely capstone-based. Tekedia capstone is a research paper or a case study exploring a topic, market, sector or a company. Tekedia Institute supervises the work.

How To Register: 

1. PayPal: follow this link and pay $140 US dollars (or more if adding the optional components). It supports most global currencies.
2. Bank transfer (Nigerian naira): Pay N50,000 (or more if adding the optional components) into any of:
   • GTBank 0114016493
   • UBA 1019195493
   • Account owner: First Atlantic Semiconductors & Microelectronics.
3. Flutterwave: follow this link (naira) or this one (USD) to use your Verve, Visa, Mastercard, Amex, etc cards across Africa and beyond.
4. Automatic Access: Pay via this Tekedia link for self-automatic enrollment with username.
5. Zelle:  email us for the Zelle phone number for transfer

After payment, email tekedia@fasmicro.com with participant’s name and code or program paid for, to complete the registration.

The decade of 2000 was the decade of voice telephony. The 2010s was the decade of mobile internet. Today, we are in the decade of application utility where software systems would be used to fix frictions in sectors which are yet to be digitally transformed. Logistics, payment, lending, retail, etc would all evolve in Africa.

The entrepreneurs, the high priests of these movements, would receive higher calls, not from IPOs, but pure buyouts. Yes, exits would ramp out in Africa as founders and early investors begin to cash out. Yes, with lackluster public exchanges for technology companies, most exits would be via acquisitions.

Dubai-based Network International Holdings plc is acquiring  Kenya’s DPO Group, an online commerce and fintech platform in Africa, for $288 million.

—press release below

Network International Holdings plc (the “Company” or “Network International”), the leading enabler of digital commerce across the Middle East and Africa (“MEA”), is pleased to announce that it has entered into an agreement to acquire DPO Group (“DPO”), the leading, high-growth online commerce platform in Africa, for a total consideration of approximately USD288 million (the “Transaction”). The consideration will be almost entirely funded through the proceeds from an equity placing representing 10.0% of the Company’s existing issued share capital, USD50 million vendor consideration shares issued to Apis Growth Fund I, managed by Apis Partners (“Apis”), USD13 million consideration shares issued to the DPO co-founders, with any small remaining balance to be funded via existing debt facilities.

DPO is the largest online commerce platform operating at scale across Africa

• Rapid growth profile with revenue CAGR of c.40% from 2017-2019 and Total Processed Volume (“TPV”) CAGR of c.30% from 2017-2019. Revenues of USD16 million in 2019
• Leading e-commerce and mobile money services for >47,000 merchants across high quality brands
• Present in 19 countries across Africa with South Africa, Kenya and Tanzania representing major markets. Multiple distribution channels with on the ground presence to recruit merchants, combined with direct connectivity to acquiring banks

Strong strategic fit and growth accelerator for Network International

• Market: consolidates and accelerates our presence in Africa, the most underpenetrated and fast growing payments market in the world. Africa expected to represent c.40% of Network International total revenue by 2024 (27% in 2019), giving us an evenly balanced business in Africa across Merchant and Issuer Solutions
• Distribution and relationships: brings direct merchant and Mobile Network Operator (“MNO”) relationships, broadening our business in Africa across the entire payments value chain
• Capabilities and innovation: widens our capabilities and exposure in fast growing online payments and mobile money, enabling merchants to accept a wide range of payments methods
• Cross selling opportunities: combined incremental capabilities and solutions provide significant cross-sell opportunities to both Network International and DPO customers
• Disciplined capital allocation: acquisition expected to be broadly EPS neutral in 2022, including integration costs. Double digit ROCE within 3-4 years, and significantly higher thereafter

DPO has seen strong current trading, following Covid-19 lockdowns

• Digital and online payments market in Africa expected to grow at 19% CAGR [1] over the next five years and Covid-19 expected to accelerate this growth
• E-commerce penetration in Africa is 0.3% of private consumption, versus c.5% in the United Kingdom and c.17% in China [2]
• Following stringent lockdowns in DPO’s main market of South Africa during April:
• DPO signed c.4,400 merchants in June 2020, an all-time high
• TPV growth year-on-year was 27% in May (57% in constant FX) and 27% in June (49% in  constant FX)

Financing and structure

• DPO Co-Founders incentivised and aligned through rollover of USD13 million of their DPO ownership into Network International shares (the “Co-Founders Consideration Shares”) and a two year holding period (from the point of acquisition signing)
• Acquisition consideration to be almost entirely financed through proceeds from a 10% equity placing, USD50 million vendor consideration shares issued to Apis (subject to a three month lock-up from the point of acquisition completion), and the Co-Founders Consideration Shares, with any small remaining balance funded by existing debt facilities
• Completion of the Transaction is expected in Q4 2020, subject to customary closing conditions including regulatory and anti-trust

Simon Haslam, Chief Executive Officer, commented:

“We are excited by the proposed acquisition of DPO, the leading high-growth online commerce platform operating at scale across Africa. Africa is a vast and diverse continent, representing the world’s most underpenetrated, nascent and fast growing payments markets, where we have seen recent signs of an acceleration in those trends. DPO will further consolidate our presence in Africa, strengthen our position across the entire payments value chain and accelerate our growth. This acquisition will widen our capabilities across online, mobile and alternative payments; bring an extensive and diverse range of direct merchant relationships to our business; and provide a wider range of solutions for our existing customers. We look forward to bringing our two businesses together and welcoming DPO’s colleagues into our group. Together, we have a powerful combination to accelerate digital payments across our regions and deliver significant shareholder value.”

Huawei has overtaken Samsung as the world’s largest shipper of smartphones, on a quarterly basis, virus or no virus. This happened despite U.S. sanctions which forced Huawei to phase out Google services for  its own Harmony operating system, Canalys reports. How do you handle China? Nothing seems to be working for Washington!

Huawei shipped more smartphones worldwide than any other vendor for the first time in Q2 2020. It marks the first quarter in nine years that a company other than Samsung or Apple has led the market. Huawei shipped 55.8 million devices, down 5% year on year. But second-placed Samsung shipped 53.7 million smartphones, a 30% fall against Q2 2019.

Huawei is still subject to US government restrictions, which have stifled its business outside of mainland China. Its overseas shipments fell 27% in Q2. But it has grown to dominate its domestic market, boosting its Chinese shipments by 8% in Q2, and it now sells over 70% of its smartphones in mainland China. China has emerged strongest from the coronavirus pandemic, with factories reopened, economic development continuing and tight controls on new outbreaks.

Of course Samsung has a double play. It may no longer be the world’s smartphone king, but its Q2 profits were up 23% due to strong demand for its memory microchips. The company explains: The Memory Business saw robust demand for cloud applications related to remote working and online education as the impact from COVID-19 continued, while demand for mobile was relatively weak.”