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Home Blog Page 7167

Business Idea #10: Agro-Marketplace To Reduce Price Asymmetry

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A farmer prepares water channels in his maize field in Ngiresi near the Tanzanian town of Arusha on Tuesday, July 17, 2007. Millions of farmers around the world will be affected by a growing movement to change one of the biggest forces shaping the complex global food market: subsidies. Many experts agree farmers need help to grow food year in and year out, but Western farmers may get too much and African farmers too little. (AP Photo/Karel Prinsloo)

This daily series focuses on business ideas for those looking to launch new ventures in Nigeria (and Africa in general). The short ideas are archived here.


The Problem

The price asymmetry between prices of produce in rural and urban areas in Africa remains a big challenge. Farmers who do the hard work of farming largely sell for nothing to middlemen (or merchants) who then re-sell in urban areas. Those middlemen mop up more than 40% of the profit in the value chain. In other words, if the farmer makes 10%, the middlemen make 60% while the end-resellers make 30%. The nexus is possible because the farmers do not have clear ideas what the items which they have produced are sold in cities.

The Opportunity

This is a data business which is certainly huge. If farmers have the real-time data of what produce goes for in big cities, they would bargain better with middlemen and merchants when they come to buy produce from them. A top-grade system will support not just farmers but also merchants and commodity traders who can feed into the system to have real-time insights on pricing. There are opportunities to sell subscriptions, comprehensive market reports, and more to clusters of market makers. This is nothing but a marketplace which can be structured to be an aggregation system with data coming from farmers, merchants and even end-users.

Action Roadmap

Build SMS, chatbot or web app that can deliver a marketplace for farmers, merchants, traders and end-customers in the agro value chain. The system should offer value to all participants in the marketplace. It must deliver supply chain pricing transparency to unite all players and then deliver equilibrium that is possible due to lack of any asymmetry on pricing.

Comments from LinkedIn

Ndubuisi Ekekwe, this is a very important issue to tackle and the potential solutions you are opening up to building a real market in which producers have a view of the market and can operate around that knowledge is great. Depending on the African country concerned, there might be different barriers to building such integrated network, which allows for the producers to access a fair share of the revenues, better than what they get. One aspect could be to help producers organize along the value chain and create there own logistics if they are able to regroup as coop or something similar. All the technologies available to helping hem to that end should be taught to them. There is certainly a lot to do around the idea put forth here. As usual, I appreciate your analysis about these issues and the founding solutions you provide.

Active Investor #2 – TLcom Capital

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This daily series focuses on active investors who are investing on African entrepreneurs and their startups/businesses. To qualify, the investor must have done a deal within the last 24 months in continental Africa. The daily entries are archived here.


Business Name: TLcom Capital Partners

Business Description: TLcom Capital LLP is a Lagos, Nairobi and London based Venture Capital firm focuse on Tech enabled companies across Sub Saharan Africa. TLcom has been investing across Europe, Israel and the US investing since 1999, with more the $300m under management. In July of 2017 TLcom held the first close of its new TLcom TIDE Africa fund, targeting $100m to invest into tech start-up across Africa, focused on acceptability, fintech, commerce, consumer services (from health and education to energy and media) and services for corporates and SMEs.

Business Focus: Multi-sector

Location: Lagos, Nairobi

Selected Recent African Deals: mSurvey, Terragon Group, Andela

Website: www.tlcomcapital.com

Contact: info @ tlcomcapital.com

Factor:Nigeria’s former minister of Communication Technology, Omobola Johnson works here.

Active Investor #1 – CRE Venture Capital

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This daily series focuses on active investors who are investing on African entrepreneurs and their startups/businesses. To qualify, the investor must have done a deal within the last 24 months in continental Africa. The daily entries are archived here.


Business Name: CRE Venture Capital

Business Description: CRE Venture Capital partners with visionary entrepreneurs building category-defining tech companies in Africa. We bring the full arsenal of our capital, relationships, and experience to position the teams we work with for outsized success. They bring the full arsenal of our capital, global relationships, and experience to position the teams they work with for outsized success.

Business Focus: Multi-sector

Location: South Africa

Selected Recent African Deals: Andela, Flutterwave, PrepClass

Websitehttps://www.cre.vc/

Contact: info @ cre.vc

Factor: This company lead the recent $40 million Andela round

Launch of Today’s Active Investor Series

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We are launching a new series on Tekedia. It is titled Today’s Active Investor. Daily, we will share profiles of ACTIVE investors who are investing on African entrepreneurs and their startups/businesses. To qualify, the investor must have done a deal within the last 12 months in continental Africa.

 All the daily entries will be archived here.

[To make this easier for my team, please share suggestions to tekedia@fasmicro.com. Thanks]

The President for the Knowledge Century

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In 2019, I am looking for that President that will “restore the dignity of man” (and woman) [thanks UNN] with the “fierce urgency of now”: Unimpeachable, diligent, pragmatic, intelligent and visionary with traits of decency, honor and service. With him/her, Nigerians will rise to the mountain-top, experiencing the unbounded promise of Oct 1 1960 as the first mounting of the Green White Green even as Union Jack [British flag] was lowered.  We yearn: The President for the Knowledge Century.


Our world is changing rapidly. Across the globe, many events, including the unexpected election of Donald Trump as American president, point to a world where nations are looking for fresh ideas to overcome severe economic crises and survive the onslaught of global competition driven by the advent of information and communication technologies. The evolution of knowledge workers (or brain workers) is changing many national policies, as countries device strategies to manage the impacts of globalization by developing infrastructures on education, industry, health and energy. It is a new world where nations that fail to develop or learn, acquire and adapt technologies will remain poor. The emergence of China, and the continuous threats to many established industries by new ones, enabled primarily by brainpower, are showing that this is a ‘knowledge century’.

Knowledge will rule modern man and this knowledge is new, fresh and combative. Since Adam Smith’s ‘Wealth of Nations’, there has never been a more urgent time in the history of man where innovative economic and political leadership is required of leaders. The reason is simple; globalization makes it difficult to control factors like trade and labour, which hitherto, could be easily controlled to the advantages of nations.

Indeed, a world of unbounded and unconstrained markets with internet as the center of new business models, enabling platforms which have become more powerful than some nations. These platforms are restructuring the very elements which have held economies for decades. And they are just starting with new disruptions and dislocations coming.

From American Wall Street to Nigerian Broad Street, leaders have come to realize that new ideas are needed because many old economics are falling. New ideas that accommodate emerging variants that technology has enabled in both the political and economic national models. Models based on the theme that every nation has a limit to national wealth without science and technology. It is an understanding that the era where natural resources dominate international trade is giving way to that of knowledge resources. Natural resources are still important, but unfortunately, the most stable and prosperous nations are those that create ideas with army of knowledge workers.

A vision of new Nigeria is very important for the future of our nation. Our educational system needs immediate improvement. The advancement of any modern superpower has been fuelled by its educational infrastructures. And the collapse of any great nation has always been preceded by the decay in its education. The old Greece was known for its fine philosophers, the Babylon known for its wisdom and the old Egypt, where civilization began was known for its knowledge.

In its age, Egypt was admired for knowledge as the land of pharaoh had some of the best thinkers. Moses of the Bible was highly respected partially because of his Egyptian education, which was better than his Israelite’s comrades. During the British industrial revolution, their education was the best, as no school on earth could be compared to Oxford and Cambridge. Today’s dominance of the United States is attributed to its education, which remains its best industry, at least at the university level. The schools drive the researches that translate to new technologies, which subsequently diffuse into the economy. America has the finest labs in the world and continues to dominate the roll call of Nobel laureates. It is believed that if America loses its educational superiority, it would lose its dominance in the world’s political and economic scenes.

How can Nigeria prepare for this century? We need leadership and fundamental changes in policies to modernize our education and industry. From electricity to road networks, Nigeria has the capacity to provide and sustain them; we are smart, ingenious and optimists. But our problem has been lack of 21st century level leadership.

Nigeria needs a leader with capacity to rally the nation in honesty, hard work and raise our imaginations beyond where we are today, and move us to believe in ourselves, and create the tools to make us build our nation. It must be a leader whose goals will not just be to keep government running, but one who can help the nation dream a bigger, larger and glorious vision that generations of Nigerians will unite for. A leader that besides running the nation will transform it.

A leader that can create a society to engage our brightest minds in government by evolving a new political system designed to seriously solve problems. A person who can engineer Nigeria into rebirth and restoration to offer a prosperous nation that is colorful, fluidic, vibrant and open for change. Yes, a person of immense intelligence, competence, pragmatism, and unimpeachable. A person of integrity, broad knowledge, enormous vision and solid experience; one that can stimulate more vibrancy in the private sector and move the public sector out of its stasis. With that leadership, Nigeria will witness changes in trade, education and commerce as battalion of knowledge workers emerges to give us the needed clout in the global arena.

Finally, Nigeria and indeed the whole world are faced with enormous challenges and opportunities. For Nigeria, the challenge is fundamentally developing the system to enable the emergence of new class of workers, the knowledge workers, and providing the economic environment where they can flourish. The opportunity comes by using the skills of these workers to grow the economy by diversifying the petroleum-based economy and move millions of our citizens out of poverty.

We yearn: The President for the Knowledge Century.