DD
MM
YYYY

PAGES

DD
MM
YYYY

spot_img

PAGES

Home Blog Page 6329

The Dangote Book Debate – Keep It Going

0

Good people, I am liking this debate on Dangote. What again can I ask for? It means my subject generates interests and that is what authors want. Keep debating. Last week I was accused of throwing Dangote under the bus and this week it is that I am celebrating him. No issues. You have all the rights to challenge my thesis. And you have the rights to challenge others also.

But do not make it a personal matter by insulting people. If you do that, you will scare people in this community; I do not want that to happen. Just make your point with respect and decency, and even if you do not agree, focus on the points and not the person. Let us extend this debate till June 22 when the book launches. Thank you.

Of course, you need to buy the book first.

This book arrives June 22, 2020, the day we will begin a new class of Tekedia Mini-MBA. Our participants will have access to its audio and text contents as complementary. The Dangote System is a mega case study for our second edition of Tekedia Mini-MBA (register here).

Comments on LinkedIn Feed

Comment: Prof made it clear months ago that he is not writing a biography, but diving into the strategies of Africa’s most powerful business man. That’s what I’m interested in, not some claims (unsubstantiated?) about his monopolistic tendencies. Dangote has clearly lost in some areas, and won in many others. Let’s learn about that.

My Response: Thank you. I do not defend Dangote. I report what I see about his business. But it would not be based on gossips and rumors. Like all conglomerates – from GE to Amazon to Carlos’s empire in Mexico, citizens pay taxes to conglomerates. Nigerians have to pay tax (good forex, etc) to Dangote Group because that is how conglomerates operate. I called that the Conglomerate Tax. Amazon puts cities to compete on who can give it the highest tax breaks! America has hundreds of them (Boeing gets $100m from WA state yearly as free money). Dangote’s problem is that he is alone . I hope to share what the strategy is, hoping that a 20-year old girl or boy will dream so that we can have many Dangotes.

 

 

 

Facebook Shops: Pivoting in Pandemic

0

We all know what will happen, it is either businesses adapt or get disputed and phase out. It either as an employee that has been affected by this pandemic, adapts or gets disrupted and phases out too.

 Whichever way, the fact remains that the pandemic has created trends that can be maximized to unlock market value this time. In my article on how to create a business model around trends, I pointed out some of the trending opportunities recommended by the World Economic Forum. One of such trends and market opportunities is online shopping.

There are trends that have come to be part of the economic pattern. They have come to shape the world in ways we thought will happen in the next decades. These trends are very good to build sustainable business models around.

Of course, entrepreneurs and innovators have risen up to build some impressive innovations around some of these trends. Some have pivoted their business models towards where the value is converging in order to fix market frictions.

 My interest in this article is to analyse one of such pivots that is around online shopping. According to Techcrunch Mark Zuckerberg said in a live session that “I do think we’re going to continue living more of our lives online and doing more business online.”

The Facebook shop riding on the wave of the Facebook business model. This article will help you to know how pivoting around trends can be effective for an already existing business. Follow me.

Facebook Shop Leveraging on Facebook Existing Infrastructure.

When it comes to pivoting in business, it is easier and more effective for an established business than a startup due to established business’ infrastructure and resources. Here are the facebook infrastructures that the facebook shop will ride on;

 The Facebook User Base:

According to Statista there are  2.6 billion monthly active users as of the first quarter of 2020, Facebook is the biggest social network worldwide. When we come to the subject of data, Google and Facebook are the leaders.

While Google is leading, Facebook occupies the second position. With 2.6bn active users on facebook, the two sided customers for the facebook shop is already a settled issue. So, the product will thrive based on the already existing market.

 Facebook Group:

The above monthly user base of facebook are grouped into facebook groups based on interest and niches. So, with the existence of millions of facebook groups on Facebook, where people engage on a particular subject of interest, it becomes very easy to target them based on specific products on the Facebook Shop.

Facebook groups are created for a community of people with a common interest. But, mostly, people discuss business related topics. How they can better increase their source of livelihood and how they can learn and earn. So, some organised Facebook groups are very important to facebook because they help in Facebook data analysis .

Facebook Pages:

The facebook page serves two general purposes which are; one, there are influential individuals that have fans and create pages to influence their fans. Two, there are business pages which are dedicated to people that own business, mainly small businesses and startups.

One of such pages on facebook is Strive Masiyiwa page that has a fan base of 5.1million followers. This page is for the purpose of entrepreneurial and business mentorship.

That means Facebook already has data of  some businesses with the help of the Facebook page. So, it will become convenient for business pages to be converted into shops.

 Facebook Marketing.

One of the ways users of Facebook who run business maximise the platform is through facebook advertisement or promotion. These could be in the form of normal organic content marketing and sponsored ads.

With this, facebook is already associated with business marketing, sales and brand visibility. Adding Facebook Shop to this will make the platform to have comprehensive tools for businesses that use the facebook platform for promotional activities.

 Hence, Facebook Shop is here to ride on the success of the Facebook business model. But, how does it unlock value for the stakeholders of Facebook. It does in two ways;

  •   Helping to Digitize Businesses:

 This has become a need in this period as people have resorted to shopping online. With your goods or products on Facebook Shop, your customers can order and you make deliveries without physical contact.

  •  Adding Revenue Models to Facebook Business Model:

With this product on facebook, the revenue generation capacity of Facebook will increase. Then, this will help the company to maximize profit and create wealth for shareholders.

 In the next analysis, we shall consider how Facebook shops make money.

When we know that “the times are a changin”, then we’ll learn to adjust our plans as the times change.

The Dangote System – A New Book From Ndubuisi Ekekwe

0

His generation’s most impactful business-leader. How did a trader plot to become the most powerful businessman in African commerce? How did a man turn a $3,000 loan  into the most advanced industrialized conglomerate in Africa? The Dangote System: out June 22, 2020 exclusively to Tekedia Mini-MBA edition 2 participants. Register to join them.

 

Free for all Mini-MBA edition 2 participants

The “High 5s”: A strategic vision and results that are transforming Africa

0

For the past ten years, Africa has recorded some of the world’s strongest rates of economic growth. At the same time, many African economies continue to function at well below their full potential. Structural transformation is needed to create more jobs, reduce poverty and accomplish sustainable development objectives.

The African Development Bank’s (www.AfDB.org) High 5 priority areas are intended to support African countries’ achievement of the SDGS. They are: Feed Africa; Light up Africa; Industrialise Africa; Integrate Africa; and Improve the Quality of Life for the people of Africa. 

Atta Abdul, Fatima-Zahra, Shuaibu, and Daniel are the faces of a continent that is being transformed. By betting on Africa’s youth, the Bank is banking on the future to make the continent a land of progress, prosperity and hope.

Feed Africa

Since 2015, 74 million Africans have benefited from improved agricultural technologies through the Bank’s efforts to support increased food security on the continent.

In western Mauritania, for example, the Brakna-Ouest irrigation infrastructure improvement project, supported by the Bank in the amount of $12 million, enabled 1 500 farming and livestock-producing families to return to cultivating their fields.

“We come from a farming and livestock-producing family and we grew up in that environment. Our harvest was very poor. We wanted to move somewhere else,” explains Atta Abdul Seck, a project beneficiary in Louboudou in western Mauritania. “As a farmer’s son,  what I liked most when I returned was being able to continue farming. Farming is in my blood,” he says proudly.

Light up Africa

Without electricity, agriculture cannot effectively meet the growing challenge of food security in Africa. The Bank has made investment in energy a priority. Since 2016, it has mobilised $12 billion for its “Light Up Africa” strategic priority. Through this investment, 13.4 million people have gained access to electricity.

Morocco has made significant progress in widening access to electricity. In just the past twenty years, the electricity system has expanded to cover almost the entire country. The national rural electrification program, supported by the Bank with 155 million euros, has connected nearly 12.8 million Moroccans to the national power grid.

In Dar El Aïn, a village twenty kilometres from Marrakesh, the arrival of electricity has opened new doors for the women of the “Al Amal” cooperative. They use electricity to process their wheat into couscous or create other barley or wheat-based products. “The cooperative processes local crops into added-value products. Now, with electricity, the women are much more efficient, and their products are of better quality. It creates hope,” says Fatima-Zahra, a thirty-year-old member.

Industrialise Africa

As part of the Bank’s “Industrialise Africa” priority, 9 million people have gained access to private financing. In Nigeria, for instance, where more than 70 percent of the population depends on agriculture, fluctuating harvests have significant repercussions on yields, income and food security.

One solution is fertilizer, particularly if locally produced. The Bank provided $100 million to support construction of a modern fertilizer plant in Port Harcourt.

Shuaibu Yusuf, a farmer in his thirties who live near Port Harcourt, has experienced the impact of this project in his daily life. “When I used this fertilizer, I saw the difference. My harvest increased by more than 40 percent. I can feed myself, pay for my children’s education, and even their medical expenses,” he says. “I’m going to encourage my children, my neighbours and members of my community to increase their farming activities so we can all progress together,” Shuaibu continues.

Integrate Africa

To derive more benefit from industrialisation, Africa must become better integrated in terms of trade and markets. Through integration, African countries can gain access to larger markets and thereby increase incomes for millions of residents through new opportunities.

Since 2015, 69 million people have benefited from the Bank’s support for new transport infrastructure that has advanced integration. Gaps in the primary transport corridors have been filled, links between countries have been strengthened, and intra-African trade has been revitalised.

A good example of this is The Nairobi-Addis-Ababa corridor, which received$670 million in Bank financing and which has enhanced the potential for trade and job growth in Ethiopia and Kenya.

Daniel Yatta, a forty-year-old Kenyan lorry driver, has been transporting goods between Nairobi and Addis-Ababa for 15 years, and has seen the new road’s impact on his business. “Back in the day, it would take more than two weeks to drive between Addis and Nairobi,” he says. The new road has made his life much easier. “With the new road, the trip takes only a few days. With 30 tonnes of freight, it only takes about 24 hours to drive to Addis!” he continues.

Improve the quality of life for the people of Africa

An important part of improving living conditions is providing better access to essential services such as health, water and sanitation. Since 2015, Bank-supported projects have given 43 million people access to water and sanitation.

SOURCE: African Development Bank Group (AfDB)

Nigeria needs to further reduce interest rate to boost local production and stabilize the economy – Bayo Ibrahim

2

Bayo Ibrahim is a graduate of Food Technology from the University of Ibadan, Nigeria. He currently co-runs a processed food company in Osogbo, Osun State Southwest Nigeria. He spoke with Rasheed Adebiyi on the impact of the COVID 19 pandemic on startups and other issues affecting entrepreneurship in Nigeria. Here are the excerpts.

Tekedia : Tell us about yourself  

Bayo Ibrahim: I am Bayo Ibrahim. I am a food enthusiast. I love to see well processed and packaged food products. I am a co-founder of Plantation Foods and we are the producers of Premier Custard.

Tekedia : As a business owner, how could you describe the government response to COVID 19

Bayo Ibrahim: The Federal Government has shown great responsibility with its attention and responses to Covid-19 especially to businesses with several intervention programs declared to ensure ease of doing business in the country.

Tekedia: At this point that it looks like the CoronaVirus seems to be here to stay with us, what do you propose for the government to do?

Bayo Ibrahim: Yes, it’s appearing as if the effect of the virus will not be subsiding soon and this has really affected businesses so hard. First, it is understandable that a larger number of businesses in the manufacturing sector depend greatly on importation. The federal government should provide and sustain incentives and waivers on the importation of critical and essential manufacturing materials especially in the food and drug sector. This should not be limited to packaging and plastic materials used in manufacturing.  The government should as a matter of importance ensure availability of forex and control of exchange rates to minimize the rate of inflation. Finally, on this, the government should also reduce the interest rates, especially from government-initiated business loan facilities. All of these will ensure a stabilized and controlled economy that may be caused by the effect of the Covid-19.

Tekedia: In specific terms, could you describe how government response affects entrepreneurs like you?   

Bayo Ibrahim: At first, I will like to talk about the lockdown policy. There is no doubt that it is the best alternative to avoid or reduce the spread of the virus. However, as good as it is, it has really affected businesses especially young start-ups like our own. In the first week of the lockdown, we did not have an idea of what would happen. The pre-existing news about other countries in relation to the virus shaped our responses. We couldn’t go out and business couldn’t run despite the fact that we are a food manufacturer. As a matter of fact, nothing worked during the first week of lockdown. Then, after we realized there are waivers for food manufacturers and a few others, we set into actions. Unfortunately, open markets across the country where we have our distributors and customers especially at the state capitals were all locked up. So, the waiver was absolutely of no value. So, for the first one month of the lockdown, nothing worked and we couldn’t make any substantial business.

More so, when business is supposed to resume with the partial lift on lockdown, the prices of production materials have drastically gone up and inflation has already set in.  The average cost of production was about 30-40% on the rise. The implication of this is that more working capital will be required to be able to sustain your regular production capacity. Going further, customers/consumers’ resistance had set in with a sharp rise in production cost which directly affected prices of our products at the consumer level. So, if care is not taken, this is the best time for a start-up to lose business. Many businesses will have to restart or even crash out of the system.

Tekedia : How is it like running a business in Nigeria and in Osun specifically?

Bayo Ibrahim: Nigeria and Osun, in particular, is a good place to do business. People like us have really benefited from the peaceful coexistence of the Nigerian people. Our good population is a great advantage and a good strength of marketing to any serious-minded manufacturer. You will not be surprised that there are some product brands in Lagos today that are multinational standards and have never gone beyond Lagos. The reason for this is that the population in Lagos alone is more than enough to sustain their businesses. As an emerging business owner, if I can capture the southwest market successfully I am in good business. Doing business in Osun especially in Osogbo is one thing I love to propagate any time I have the chance. Because you can have an average of 18 hours of power, a fairly good road network, affordable and ready to go and diligent youth as human resources. Government policies on small businesses here are enduring. The only thing I think the Federal and state government need to work on is encouraging local content for raw materials for the production and manufacturing sector to reduce high cost of importation. For instance, about 95% of our production materials in Plantation Foods are imported. So, everytime there are threats on importation like this, we are always affected and it runs down the value chain.

Tekedia : What would your advice be for young Nigerians who seek to be entrepreneurs?

My advice is that they should start now. If you have any enterprising idea that can change narratives, please start now. The most difficult part is getting started and you can only start at a time. Let me also say this, I have always believed that the benefits in entrepreneurship are far more than engaging with a monthly paid job. Every Government of the world has programs for young businesses and entrepreneurs. So, start-up capital can’t be an issue, you only need to open your eyes widely to know where the money really is. Young intending entrepreneurs should take that bold step to change the narratives of joblessness and all.

Tekedia : There are a number of government economic stimulus packages for businesses. What specific areas would you want the government to intervene for start-ups in Nigeria?   

Bayo Ibrahim:  In all fairness, the federal Government is on top of the talk in sustaining the economy especially during this pandemic and they are really taking good actions to ensure economic activities do not enter comatose. For instance, they have provided waivers on importation of medical and food production materials, so they should sustain that for a good number of months or years and should be exclusively extended to packaging materials too. Moreover, governments at the central have extended moratoriums to businesses who benefited from the Bank of Industry manufacturing intervention funds. That’s a very good one and they have also reduced the lending rate on the same platform from 11% to 7%. To be honest, it’s the best any serious minded business owner can have at the moment. They have really put the economy on the acceleration gear. It’s only left for our youth to tap into those initiatives and leverage on them. Government should sustain that initiative until everything works well across the world. Moving further, I think one big deal the government needs to do is ensuring availability of forex for easy importation of manufacturing materials. It is understandable that the cut in crude oil supplies due to the pandemic really hit us hard on the state of our foreign reserves. Notwithstanding,  the government must work on controlled exchange rate so as to reduce the level of economic instability and inflation. Finally, Nigerian government should really learn from this scenario and build the nation’s economic strength by encouraging local content and sourcing for manufacturing raw materials locally.  We are over relying on importation and this is not just affecting businesses, it is killing us health wise. Government should be determined and sincere on economic policies.

Tekedia: Thanks for your time

Bayo Ibrahim: Thank you.