Africa: Sports as a Business and a Brand – by Victor Oladokun

Africa

Fans are choosing not to watch live football events, and instead are opting in increasing numbers for the ‘intimacy’ of their crystal clear digital flat TV screens, or not all

At the ongoing Africa Cup of Nations in Egypt, the visual imagery of almost empty stadiums is a powerful narrative. But not the kind that African sports, African football, or corporate sponsors deserve.

The empty seat syndrome suggests that football fans are voting with their feet, or better still with their backsides. Fans are choosing not to watch live football events, and instead are opting in increasing numbers for the ‘intimacy’ of their crystal clear digital flat TV screens, or not all.

Africa
 

Before Egypt’s stunning 0-1 loss to South Africa in the round of 16, the host country was the only team able to attract 70,000 fans. Other than when Mo Salah and the Pharaohs have been on the field, most stadia across Egypt have at best attracted an average of 5,000 to 7,000 fans.

Official broadcast camera crews have done a creative job minimizing the visual gaps of empty seats. But wide camera angles reveal the obvious … a lack of attendance and public enthusiasm, in spite of the presence of some of the biggest names in world football on the field.

In European football leagues, where many of the stars in Egypt ply their trade, fans pay mega bucks to see the likes of John Mikel Obi, Ahmed Musa, Sadio Mane, Ryahd Mahrez, Nicolas Pépé, Wilfred, Zaha, and Kalidou Koulibaly.

Which is why the empty seats in Egypt are both stunning.

Admittedly, Egypt bailed CAF out and should receive well-deserved credit for coming to the rescue and hosting the African Cup of Nations, with barely 6 months notice, when the original hosts were sanctioned due to shoddy preparations.

Nevertheless, the lack of attendance in Egypt speaks volumes high ticket costs; the timing of matches bang in the middle of work days; the difficulties faced by national team supporters in obtaining entry visas to Egypt; and challenges with the Confederation of African Football’s complicated online ticket purchasing system.

It should not be so. This, after all, is the most important event in Africa’s sports calendar. At least, it used to be before England’s Premier League, Spain’s La Liga, Italy’s Serie A, and Germany’s Bundesliga captured our collective imaginations.

The end result is that where once 30,000 to 70,000 fans a week watched highly competitive domestic football leagues across Africa, the empty seat syndrome has been the norm for almost two decades. It is not unusual to have less than a thousand fans in a stadium that seats 30,000.

The lack of fan attendance has obvious economic and financial implications across the sports value chain for team owners, sports federations and confederations, players, sponsors, advertising and marketing agencies, merchandisers, vendors, and local communities who once counted on fan attendance to boost fledgling economies.

What’s responsible for the increasing slide in fan attendance?

1. Poor facilities

2. High ticket costs

3. A lack of reliable transportation to and from venues. As well as sufficient and secure parking.

4. Increasingly crude behavior and violence at event locations.

5. Technology. Mobile phones and Apps that carry events live as well as a plethora of entertainment alternatives. In other words, once big events are no longer the main gigs in town.

So, what can be done to reverse the trend? Here are 5 quick suggestions.

1. It can no longer be business as usual. Africa must run sports as a professional business. This includes the right infrastructure, training facilities, attractive pay scales for professional athletes who now consider anything less than a European league appearance, a professional failure.

Regrettably, as with Africa’s overall propensity to simply export raw materials instead of adding value to what we produce, we are doing the same with football and many other sports. Africa has a tremendous abundance of potential talent that for the most part (with the exception of South Africa, Kenya, and Ethiopia) we add little or no value to. Instead, millions of genetically blessed athletes are simply waiting or begging to be ‘found’ on the cheap by European and American sports teams. Why? Simply because we fail to see diamonds in the rough and because we are unable to add value to the potential of what for now seems to be rough stones.

2. Modern and professionally maintained facilities: In sizzling hot Africa, we must invest in covered stadia. When I can sit in front of my big screen TV in my air-conditioned living room, why would I want to subject myself to temperatures that I swear have gone up a number of notches in recent years?

3. Sport is a spectacle. This includes everything including pre-event and half time entertainment to keep fans with short attention spans upbeat and engaged.

4. Give back to the fans: Essentially, engagement in the 21st century must change. Its time to give something back to fans rather than fleecing them at every opportunity with sub-standard services and products. It would seem to me that sports teams could offer something as simple as raffle draws that reward fans with extra game tickets, signed player jerseys, visits with select players, or products from local sponsors. Professional marketing firms can come up with an endless list.

5. Make sports big and make it a win-win proposition.

Real Madrid F.C. and Barcelona F.C. for example, are not owned by a few rich individuals. Instead, they are owned and supported by thousands of shareholders known as ‘socios.’ Across Africa, it’s time to change the numbers game – in ownership, money, and attendance – by giving fans a seat at the table.

These are just a few quick ideas. However, the running of sports in general and football in particular as a business and a brand proposition will require honest analysis, political and financial will, and a collective approach.

It must be if Africa is to unlock potential and turn millions into billions.

Dr. Victor Oladokun is the Director of Communication and External Relations at the African Development Bank (www.AfDB.org).

 

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

Facebook: https://web.facebook.com/Afrikanheroes/

Key Reasons South African crypto-based Payments Startup Wala Closed Down

Wala

South African crypto-based startup Wala has come to its end. The startup’s premises, after 4 years of being in operation, are no longer open for business. Founded in 2015, Wala initially provided access to transactional banking, remittances, loans, and insurance, working with specialist providers to offer a full suite of financial services.

Wala
 

However, the startup became crypto-focused in 2017 with the launch of utility crypto-token Dala, which Wala hoped would support the operationalization and further development of scalable, blockchain-enabled financial platforms for emerging markets. It did this by raising funding from Newtown Partners and then bagged US$1.2 million in addition through a token sale.

Here are the key reasons why the startup closed down

Funding

Initially, Wala was coasting home clean. The startup which won the Zambezi Prize late last year, secured over 150,000 users, mainly residing in Uganda, within months, but founder and chief executive officer (CEO) Tricia Martinez said it soon ran into problems.

“We had little funding and limited resources while tackling a massive global problem. With over 150,000 Dala wallets and more and more partners wanting to work with us we had a lot on our plate with limited resources,” said Martinez.

However, when it became time to fundraise again, Wala was not successful, in spite of its team believing its rapid growth would make it attractive to investors.

“I began fundraising at the start of crypto winter, which certainly didn’t help. For whatever reason, not many investors wanted to back a crypto company, let alone a startup focused on African markets,” Martinez said.

“For eight months I traveled across the globe, pitching investors in blockchain, fintech, impact, African-focused… I met and engaged with over 100 investors, and despite our early growth numbers, we couldn’t secure the necessary financial support we needed to continue growing and operating.”

Wala began cutting back, turning off deposits and laying off most of its team, but on June 24 it turned off its app entirely.

 See Also: These Are Eighteen Mistakes That Kill Startups

Image result for Cryptocurrency startups

Infrastructure and Cyber-security Problems

Martinez also said activities of scammers and infrequency of service supply from the startup’s partner networks also contributed to the downfall of the startup.

“Rewards attracted scammers or people who figured out how to take advantage of a rewards system. This led us to change our rewards model multiple times and have to remove users who were abusing our system,” she said.

“The biggest problem we ran into was infrastructure. Our partners’ systems upwould regularly turn off due to internet problems or their own poor infrastructure, which meant our users were unable to transact, which was the biggest use case for Dala. This crushed our user engagement and most importantly trust in our system. It also forced us to expand the scope for Dala. We had to build even more infrastructure than we anticipated at the start,’’ she said.

A Ruined and Devastated Startup

The startup expressed shock over this reality.

“Our team was devastated to say the least and our users were upset. We provided a free financial payments system to consumers that solved a huge problem for them, but we didn’t have the funding to scale operations and solve the infrastructure problems that existed in these markets,” said Martinez.

 

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

This Moroccan Investor Is Looking To Invest Over $250k In Startups From Around World

Moroccan startups

Newly launched zero-equity Moroccan Impulse Accelerator is looking to offer tech startups that pitch at its demo day a share of $250 000 in cash prizes.

Moroccan startups
 

 Impulse Accelerator At A Glance

  • The accelerator is located in El Kelaa of Sraghna, about 100km from Marrakesh, Western Morocco. 
  • The accelerator was launched last month by University Mohammed VI Polytechnique (UM6P) in partnership with the OCP Group and its subsidiary OCP Africa.
  • The accelerator’s 12-week program was designed by global accelerator organization MassChallenge.
  • The program is aimed at startups in the agritech, biotech, mining tech, materials science and nanoengineering verticals that have a proof of concept or a minimum viable product (MVP).

How To Obtain The Funding

Interested persons desirous of participating in the program can do so by applying to through the investor’s online portal.

  • Applications for the accelerator program opened last week and will close on 1 October.
  • Startups from around the world are eligible to enter

What The Startups Stand To Benefit

  • In a statement on the Moroccan Impulse Accelerators’ website last month, UM6P  successful startups stand to benefit from access to financing through a set of national and international investment funds and business angels.
  • Startups that take part in the program will also have access to UM6P’s infrastructure and laboratories, study trips to Boston in the US and Lausanne, Switzerland, as well as a 430m² co-working space.
  • In addition, the startups will also benefit from mentorship and coaching from OCP experts UM6P professors and doctoral students, as well as mentors of the MassChallenge network.
  • Additional benefits include access to business opportunities via OCP Group, OCP Africa and UM6P networks.

OCP Group and Mohammed VI Polytechnic University will help successful companies obtain visas for the duration of the programme.

See Also: Founders Factory Africa and Netcare Are Looking For African Health-tech Startups To Invest In

Timeline Of Events

  • Between now and September, the accelerator will hold an Africa roadshow during which it will hold information sessions in Ethiopia, Ivory Coast, and Nigeria.
  • Thereafter startups selected to join the accelerator will be announced in November, with the accelerator set to start on 15 January.
  • Impulse Accelerator will hold its US and Switzerland boot camps in March next year, with a demo day and awards ceremony set to take place in April.

 

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

Ethiopia Is Now $52 billion In Debt, Twice The GDP of Uganda

Ethiopia debt

Ethiopia ’s debt profile is headed for another level. With over $52 billion debt, the country’s public debt is now more than 65% of the country’s Gross Domestic Product (GDP), and twice the GDP of the East African country of Uganda.

Ethiopia debt

“We borrowed a lot of money but we have been unable to repay on the given time… We have borrowed significantly for infrastructure projects which really failed to achieve the desire result,” said Eyob Tekalign, State Minister of Finance of Ethiopia who presented the 11 months performance report to the Parliament.

What This Means

  • Although Ethiopia’s fast economic growth registered for over a decade was attributed to being driven by the public investment mainly relying on loan, the economic growth has not been able to make the country pay back its debt.
  • The Ethiopian government total debt from foreign and local lenders now surpasses $52.3 billion.
  • As a result, Ethiopia is now forced to restructure the debt repayment schedule negotiating with the major leading country — China as well as by avoiding new debts and new public investment projects
READ ALSO: At Last Ethiopia Opens Up Its Telecom Industry, Bidding To Start September
Public debt has grown in Ethiopia over the years

“We have already avoided commercial loans because these loans when they have matured have really created a challenge of accumulated debt,” he said explaining some of the actions undertaken by the ministry as a result of the ongoing reform launched by Prime Minister Abiy a year ago.

“…We have prioritized supply side of economic growth which means working on productive sectors including mining, tourism, manufacturing even agriculture. We are still importing wheat and edible oil which in an economy like Ethiopia is really unacceptable” the Minister said.

The Gross Domestic Product (GDP) in Ethiopia was worth $80.56 billion in 2017. This year the government expects 9.2 percent growth through the economy of the highly indebted east African country has been not doing so well as a result of the internal political crisis and instability.

 

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

You Cannot Purchase Shares In These Nigerian Companies Now

Shares

The Nigerian Stock Exchange, Nigeria’s apex market for trade in stocks and securities has sent a bad signal to investors and dealers that the shares of the under-listed 11 Nigerian companies are now suspended from trading on the Exchange. The suspension is because the companies failed to file their accounts with the NSE within the stipulated time. 

Shares

Nigeria’s NSE’s market rules states that if an issuer fails to file the relevant accounts by the expiration of the Cure Period, the bourse will first send to the Issuer a “Second Filing Deficiency Notification” within two business days after the end of the Cure Period; suspend trading in the Issuer’s securities; and notify the Securities and Exchange Commission (SEC) and the Market within 24 hours of the suspension.

A Look At The Affected Companies

The suspended companies include: 

Conoil Plc

This company was also suspended last year for failing to file its audited financial statements as required by the market rules. The company declared over N1.4 billion dividends during its last financial year. The dividend declaration meant N2.00 on every 50 kobo ordinary share of the company.

Between 2012 and 2016, the company has paid a total of N8.4bn as a dividend. Conoil Plc is Nigeria’s indigenous petroleum marketing company. The 2016 revenue of the company stood at 85 billion naira. Nigerian Billionaire Mike Adenuga is the Chairman of the company.

FTN Cocoa Processors Plc

The company was also suspended last year October 8, 2018, for non-compliance with rule 3.1 of the Exchange (Issuers’ Rules) − rules for the filing of accounts and treatment of default filing. is a provider of processed agricultural commodities. The company’s market capitalization stands at NGN440m and it sold at 20 kobo per share on July 1 before the suspension.

The company is one of the few cocoa processing industries in the country. It supplies beverages to Nigeria’s leading beverage companies like Nestle Nigeria Plc and Promasidor Nigeria Limited, makers of Cowbell Milk and Cocoa products. The company has failed to convene an annual general meeting or declare a dividend for two consecutive years now. In a statement issued in March 2019, the company said it has lacked sufficient working capital to continue with production. 

 Goldlink Insurance Plc

The company has previously been suspended in 2017 for failure to file the relevant accounts by the expiration of the Cure Period. In 2010, the company paid its investors 2 kobo dividend per share. The company has not declared any dividend since 2017.

Lasaco Assurance Plc

The insurance declared 4 kobo per share dividend last year. Its market capitalization stands at NGN2.124 Billion.

Niger Insurance Plc

The company’s annual report for the year ended December 31, 2017. The report indicated a zero dividend per share. The company has also been faced with claims of its inability to pay off its indebtedness. 

R.T. Briscoe Plc

The company is the distributor of Toyota motors in Nigeria. Trading on the company’s shares were suspended in 2018 for failing to file relevant financial results and accounts as expected.

Other suspended companies include:

  • Resort Savings & Loans
  • Royal Exchange 
  • Standard Alliance Insurance
  • Universal Insurance.

The Implication of The Suspension

In view of the submission of its accounts and pursuant to rule 3.3 of the Default Filing Rules, which provides that the suspension of trading in the issuer’s securities shall be lifted upon submission of the relevant accounts, provided the Exchange is satisfied that the accounts comply with all applicable rules of the Exchange, the Exchange shall thereafter also announce through the medium by which the public and the SEC were initially notified of the suspension.

Consequently, the suspension of the above-listed companies will only be lifted upon the submission of the relevant accounts and provided The Exchange is satisfied that the accounts comply with all applicable rules of The Exchange.

 

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

Kenya: Startup d.Light Raises $18 Million For Expansion

Startup d.Light

Kenyan startup d.Light is never leaving any stone unturned in its quest to scale its business and expand its operations. The startup is the latest on the continent to raise funds. The solar kit solution has just received Sh1.84 billion capital injection from a consortium of lenders to help accelerate its growth in Africa.

Startup d.Light
 

A Look At The Funding

  • The investment came from two responsibility-managed funds: SunFunder, DWM, and SIMA.
  • The startup hopes to use the funds to expand its product line and enter new markets to reach more customers.
  • The new capital is coming barely a few months after three European government funds committed Sh4.1 billion into d.Light.
  • The company said the financing was organized by Inspired Evolution, an Africa-focused investment advisory firm specializing in the energy sector.

d.Light At A Glance

  • Although started by the Americans Sam Goldman and Ned Tozun, the Kenya-based startup provides solar-powered solutions — ranging from lights, phone chargers, radios, and even televisions — which are sold in over 60 countries. 
  • In April, it opened a regional office and service center in Eldoret, Kenya as part of the company’s expansion strategy to reach and impact 100 million lives globally by 2020.
  • Located at KIPPS Plaza, Iten road, the office, and service center has been opening daily including weekends and public holidays.
  • The center offers sales services and after-sales services for d.Light’s products including solar home systems and portable solar powered lanterns.
  • The startup has 1,000 employees and 3,000–5,000 commissioned agents, is generating about $100 million of revenue a year, and experiencing 40–50% growth annually.
 Solar Energy Ventures in Africa

“Significant amounts of capital are required to enable us to continue providing these financing plans for our customers as we grow.

“We are thankful for the continued support of our funding partners to enable us to create a brighter future for the families we serve,” said d.light chief executive and co-founder Ned Tozun in a statement on Monday.

For the startup co-founder and chief executive Ned Tozun the funding by SwedFund, Norfund, and Dutch Development Bank FMO would give d.Light some new impetus to expand into new markets and increase product lines to reach more customers.

SEE ALSO: Why Startup Ecosystem in Africa’s French-Speaking Countries Is The Least Funded In Africa

This Investment Is A Major Win For A Startup That Had A Humble Beginning

For a startup that started off struggling to raise funds, this is a big moment for it. Early investors in the startup did not believe investing in its high-risk, unproven proposal and hence were uninterested. 

“I was someone who doesn’t like public speaking. I’m more of an introverted person; I was like a coder and stuff,” Ned told Forbes in a interview. “So, going out and pitching to venture capitalists, I was so nervous the first times. But, as with anything, if you do it enough, and if you really believe in the business that you’re doing, you’ll get better and better.”

This is after a series of rejection from venture capitalists too.

“You guys will fail. Please don’t waste your life on this,” one investor told them.

The startup came to its turning point when d.light won the Draper Fisher Jurvetson Venture Challenge and earned a $250,000 check from the well-known VC firm.

Image result for Cleantech funding in Africa
Source: World Economic Forum

Inspired by the win, Guy Kawasaki’s Garage Technology Ventures doubled their $250k winnings. Buoyed by this in-pouring of funds, Ned relocated with his wife to China to figure out how to build solar-powered solutions that were affordable, high quality, and at scale. At the same time, his co-founder, Sam Goldman, moved to India to figure out how to sell and distribute the products.

Today, more than a decade since starting d.light, the startup has raised a little over $100 million in equity and debt financing. This is roughly a 50/50 mix of both.

‘‘Having the brand name of Stanford really helped. So did meeting VCs lecturing at school, and cold emailing investors,’’ Ned said. 

Of course, once those initial investments came in, fundraising became a lot easier for Ned and his team. 

‘‘I always say that, as a founder, you’re swimming in an ocean full of sharks, the sharks being investors. Eventually, one of them is going to bite, and then everyone else will want to bite.

You just need to stay afloat until then. You need to topple that first domino, and then the rest will come,’’ Ned said in the interview.

 

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

Why Startup Ecosystem in Africa’s French-Speaking Countries Is The Least Funded In Africa

French-speaking

21 of the whole 54 African countries are officially French-speaking countries. Africa makes up more than 70% of the world’s total French-speaking population. But how buoyant the startup ecosystem there remains a question. Only about three French-speaking African countries — Rwanda, Senegal, Cote d’Ivoire— have been at the forefront of all investment into the African startup ecosystem in the past two years.

The question is now: why are French-speaking African countries still backward in terms of startup funding?

African startup investment by country

Here are some of the reasons:

Startups In French-Speaking Countries Are Under-Funded Because of Language Barrier

While startup owners are not to blame for the language they speak, it appears however that language is actually a major barrier for most startups in the French-speaking countries. A look at the investment preference of investors and their countries of origin show a majority of investors coming from English-speaking countries, or having the major funds coming from English-speaking countries.

The table below represents the top investment in African startups for the years 2017 and 2018. Consequently, potential francophone entrepreneurs are turned off by lack of funding than their anglophone cousins, as the major financiers in tech are English-speaking investors.

This lack of funding has therefore led to the dearth of developers and designers in francophone Africa. Most resources for startups in Africa(e.g. regional incubators and accelerators, labs, conferences) are mostly in the English-speaking countries.

      2018 2017
Investor Country of Origin Country of Investment Investor Country of Origin Country of Investment
1 Nasper South Africa South Africa Blue Haven Initiative / EAV/ Investisseurs & Partenaires/ ENGIE Rassembleurs d’Energies, Acumen/ PCG Investments USA/France/UK

 

Ghana
2 SunFunder Kenya/USA Tanzania Wamda Capital/Omidyar Network/ DOB Equity/1776/ Uqalo/ Blue Haven Initiative/ Alpha Mundi and AHL Dubai/USA/Netherlands/

USA/South Africa/USA/Switzerland/

Malawi

Kenya
3 Proparco/Goldman Sachs France/USA South Africa Y combinator/Glynn Capital/Greycroft Partners /Green Visor USA Nigeria
4 The RiseFund/Endeavor Catalyst/ Satya Capital/Velocity Capital/Progression Africa. USA/USA/

England/ The Netherlands/

Kenya

Kenya  SunFunder /  responsAbility Investments AG /Oikocredit Kenya/USA/Switzerland/

Netherlands/

South Africa
5 Initial Coin Offering Via the Internet Zimbabwe  BECO Capital/ Vostok New Ventures/TDF/ Silicon Badia Series UAE/Bermuda/ France/USA Uganda
6 STV Capital Saudi Arabia Egypt Frontier Cars Group  Germany Egypt
7 CDC Group/ FinDev  UK/Canada Kenya Talent Holdings Hong Kong Nigeria
8 Global Innovation Partners/ Unreasonable Capital/ Goodwell Investments, Adlevo Capital/ Omidyar Network/ Capricon Investment Group USA/USA/

Netherlands/

Nigeria/Silicon

Valley, USA/USA

Nigeria  Persistent Energy Capital / Y Combinator
9 Mastercard, CRE Ventures, Fintech Collective, 4DX Ventures, Raba Capital  USA/Sub-Saharan Africa/UK/USA/

South Africa

Nigeria Draper VC/ Greycroft Partners USA Kenya
10 IFC Venture Capital / Orange Digital Ventures and Social Capital World Bank/France/USA Kenya BCX South Africa Senegal

 

The Ease of Doing Business In Most French-Speaking African Countries Is Still Poor

The economies of English-speaking African countries are growing faster and tend to have better World Bank Doing Business indicators than their francophone equivalents. Top ten African countries in the latest ease of doing business report include Mauritius, Rwanda, Morocco, Kenya, Tunisia, South Africa, Botswana, Zambia, Seychelles, Djibouti. Data show that from the whole ranking in 2019, French-speaking countries were not doing well in terms of ease of doing business.

However, some governments in the speaking countries appear to have already considered this. For instance, the Ivorian government has developed a Schéma Directeur National to support the TIC, the telecoms regulatory, to simplify the creation of tech companies (Horizon 2020). In Senegal, a startup fund of $50 million, the DER, aims to catalyze entrepreneurship all around the country.

To boost internet connection to enable startups to thrive, the government of Niger Republic awarded the country’s first 4G license to Airtel Niger in May 2018.

Also, Côte d’Ivoire’s tech scene is hot on the heels of Senegal’s. The country’s first tech hub, Akendewa, was launched in 2009 and stayed active throughout the 2010–2011 crisis. The country also has generated promising startups that respond to specific problems faced by Ivoirians, such as Qelasy (an educational tablet for children) and TaxiTracker (a geolocation app to address security concerns with taxis).

“It is the hubs’ job to make sure that the different members of the ecosystem can interact, in order to provide more experience, feedback and networks to the startups. But they are not supported or strong enough at the moment to carry out their mission fully and efficiently. Hubs do need more support,” said Impact Dakar co-founder Aziz Sy.

Some francophone nations are now leading the way when it comes to startup-friendly policies, with Tunisia, Senegal, and Mali among those to have passed or been on the verge of passing dedicated “Startup Acts”. The Senegalese government is now also making direct investments in local tech startups.

Relatively Small Market

Another point investors may be taking into consideration may be the size of the market in the French-speaking countries.

“Investors tend to view most Francophone African markets as too small. In 2016, even after a deep recession, the Nigerian economy was worth US$405 billion. That same year, the ECOWAS markets excluding Ghana and Nigeria, and therefore primarily Francophone countries, only amounted to US$120 billion dollars, less than 30 per cent of the size of the Nigerian economy,” Fayelle Ouane is co-founder and managing director of Mali-based startup support organisation Suguba, which is running the Francophone-focused L’Afrique Excelle programme on behalf of the World Bank, noted.

 

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

The age of ‘retailtainment’: how digital disruption is driving trends in physical retail décor

retail

The growth of e-commerce has already transformed the retail landscape and with double-digit annual growth predicted into the next decade

Canon, world-leader in imaging solutions, deciphers the importance of the settings and ambiences of physical shops as they become more than just a buying space, an opportunity for the brand to build and maintain relationships with its customers. We know that customers are becoming more and more demanding and that is why brands must be able to quickly develop their concept and this adaptability is made possible thanks to digital printing.

The growth of e-commerce has already transformed the retail landscape and with double-digit annual growth predicted into the next decade, this disruptive force shows no signs of abating. Yet although almost a third of consumers report shopping in-store less often, just under 90% of worldwide retail sales still take place in physical stores, reflecting their enduring appeal for both retailers and consumers.

For retailers, physical stores play a role in sales 79% of the time and excel at converting interest to sales and increasing the value. For consumers, shopping in-store provides things digital cannot; the atmosphere, face-to-face customer service and the ability to see and try products.

From the perspective of the consumer, shopping is about customer experience, not channels. This is why the movement of consumer spending from bricks-and-mortar retail to e-commerce doesn’t mean the end of physical retail. In fact, it is driving the transformation of physical retail into an immersive experience and opening opportunities for specialty print service providers (PSPs).

The new role of physical retail

Most retailers that continue to thrive are those embracing ‘omni-channel’ strategies; focusing on delivering a seamless customer experience across every channel where they have a presence – physical stores, catalogues, e-commerce, mobile, social media and more.

In this omni-channel scenario, physical and digital touchpoints must complement one another to deliver a unified journey. This, combined with customer expectation of greater personalization and preference for experiences over things, is driving a fundamental change in the role of the physical store. Clever retail brands capitalize on their stores’ ability to engage shoppers with the emotional and multi-sensory experiences that are missing from online purchases.

For design professionals and service providers active in retail décor, physical retail’s new role represents an exciting opportunity to create spaces where customers want to spend time.

From functional store to immersive brand experience

‘Retailtainment’ and ‘the experience economy’ are concepts that originated almost three decades ago but have only really begun to transform the retail landscape in the last 10 years. With retailers increasingly competing on the basis of ‘time well spent’ instead of just product or service offering, the retail landscape is moving towards showroom-style environments that encourage consumers to experience products or stores in which cafés, events or workshops invite shoppers to linger.

Cycling brand Rapha, for example, calls its 22 stores around the world ‘clubhouses’. They are cafés that screen live cycling, have programmes of events and rides and also sell the brand’s high-end cycling clothes and accessories. Italian food brand Eataly’s stores provide a space in which people can eat, shop and learn about Italian food, combining groceries and kitchenware with a café, restaurant and cooking school in more than 20 stores globally.

The vital role of décor in an immersive retail

Delivering both atmosphere and sensory appeal, interior décor is an essential consideration when creating an immersive experience that encourages consumers to spend time as well as money in-store. 59% of shoppers want an inviting ambience in-store and 51% of consumers are more likely to buy from brands whose stores are ‘interesting or different’, rising to 63% for consumers aged 18-34.

Driving footfall

Retailers seeking to stimulate repeat visits from consumers and attract new clientele need to refresh store environments regularly to make them visually enticing, keep up with changing fashion trends and maintain the surprise factor to encourage footfall. The flipside is that tired retail interiors can quickly turn off consumers and send them to competitors.

Encouraging dwell time

The décor of physical stores and pop-up retail spaces is becoming an important part of the customer journey. In addition to ensuring that shopping in-store is visually consistent with every other touchpoint where customers interact with a brand, décor has an unparalleled ability to create a welcoming ambience and make a space a pleasant place to spend time. Indeed, unless a brand specifically wants to lead with convenience, the best store designs are those that make consumers want to stay.

This is why we’re increasingly seeing décor being used more to create a branded experience and encourage dwell time than to directly drive sales. If you look at children’s clothing retail, examples run from a life-sized doll’s house in French brand, Bonpoint’s, children’s store to a playground that runs through the displays in Spanish brand, SuperMoments’, Valencia shop. In both these examples, retail décor is simultaneously creating an experience reflecting the ‘personality’ of the brands, and encouraging consumers to spend more time in the brand environment.

Enabling connected experiences

Almost half of the consumers’ inspiration for purchases today comes from social media, but its power is even greater when you consider that the most persuasive source of information for shoppers is recommendations from family and friends – that’s who make up most consumers’ social networks! So it’s no surprise that retailers are trying to engage shoppers on social media while in-store.

Mobile-empowered shoppers are taking more photographs in-store, so retailers are incorporating design features that encourage social sharing – from purpose-built selfie opportunity areas to ‘shareworthy’ fitting rooms. London department store Selfridges, for example, promotes “selfie sticks and Instagram-worthy backdrops” in the fitting rooms of its third-floor Designer Studio. This phenomenon also demands that interiors are regularly updated and kept looking fresh.

The opportunity for print

Retailers need pragmatic solutions that can create a particular ambience or reflect what is ‘trending’, but with minimal disruption and waste and often within tight budget constraints.

This plays to the strengths of digital print in terms of flexibility, turnaround time, cost-effectiveness and sheer diversity of materials. In turn, this creates exciting opportunities for PSPs, whether they come to retail décor from a background producing retail display graphics or bring décor expertise from other segments such as hospitality.

With contemporary media, digital print and finishing technology, PSPs can offer a diverse range of creative and functional retail décor applications from bespoke branded wallpaper and creative pop-up displays and features, to comprehensive retail refits comprising wall coverings, window and floor graphics, and branded surface décor on counter tops, changing room doors and so on.

The PSP’s ability to realize the retail brand owner’s creative vision and ensure that the décor elements can withstand the physical stresses of the retail environment should mean that customized printed décor is a key element in creating more welcoming, immersive and captivating in-store experiences

 

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

Facebook: https://web.facebook.com/Afrikanheroes/

Africa’s Output Grew by 3.4% in 2018, Afreximbank’s Africa Trade Report 2019 Shows

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Africa’s output grew by 3.4 percent between 2017 and 2018 despite the slowdown in global growth during that period, a new report by the African Export-Import Bank (Afreximbank) has shown.

The African Trade Report 2019: African Trade in a Digital World, launched today in Moscow during the 26th Afreximbank Annual Meetings, states that Africa’s total merchandise trade in 2018 had a value of over $997.9 billion, noting that the continent remained one of the fastest growing regions in the world.
World Trade Organisation estimates show that the volume of global merchandise trade grew by 3 percent in 2018, down from 4.6 percent in 2017.

According to The African Trade Report 2019, the findings highlight the resilience of Africa’s economies to global volatility at a time of rising uncertainty, escalating trade wars and tariffs between the United States, China, and others. The resilience reflects the diversification of Africa’s trading partners in the context of South-South trade, growing fixed investment and public and private consumption, boosted by expanding urban populations and softening inflation. These factors reduce Africa’s exposure to the business cycles associated with individual countries and regions.

The report noted that while the European Union remained Africa’s main continental trading partner in 2018 – accounting for 29.8 percent of total trade – African trade with the South grew significantly over the last decade to account for more than 35 percent of the continent’s total trade in 2018. China and India further consolidated their positions as Africa’s first and second single largest trading partners, accounting for over 21 percent of total African trade in 2018.

Intra-African trade also increased steadily in 2018, growing by 17 percent to reach $159 billion.
The report highlights that Africa has the potential to do more, noting that its contribution to global trade remains marginal at 2.6 percent, up from 2.4 percent in 2017, and that, while intra-African trade rose to 16 percent in 2018 from 5 percent in 1980, it remains low compared to intra-regional trade in Europe and Asia.

The report states that ongoing digitalization is paving the way for a new African economy, with e-commerce platforms and internet penetration expediting transactions, reducing costs and leading to a new generation of transnational digital consumers.

The report urges African governments to further capitalize on the opportunities associated with digitalization, by bolstering regulatory environments and supporting the development of digital ecosystems.
Digitalization, the reports states, can unlock Africa’s potential in driving economic development and the integration of African countries into the world economy. It can also reduce the region’s dependency on raw commodities and natural resources by helping economies diversify into more value-added products that can enhance extra-and intra-African trade.

According to Prof. Benedict Oramah, President of Afreximbank, “It is vital that Africa grasps the economic growth opportunities flowing from the African Continental Free Trade Agreement, growing domestic demand and population, and our ever-closer investment and trading links with emerging partners in the South. We must exert concerted action to ensure that we develop, industrialize and diversify our industries and supporting infrastructure to foster regional integration and participate fully in regional and global value chains.”
In the words of the Chief Economist and author of the report, Dr. Hippolyte Fofack: “Intra-African trade, which grew by 17 percent in 2018, more than three times the rate of growth of extra-African trade, was the major driver of Africa’s total merchandise trade in 2018.”

 

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

Facebook: https://web.facebook.com/Afrikanheroes/

Africa pledges to deliver Blue Economy at Africa Blue Economy Forum (ABEF) 2019

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International and Pan-African organizations agree to collaborate on initiatives following successful ABEF2019
The prospect of a fully sustainable Blue Economy for Africa gathered significant momentum following the second Africa Blue Economy Forum (ABEF2019) (www.ABEF2019.com) held in Tunis on 25-26 June.

Fishing, aquaculture, shipping, ports, energy, and finance industries all came under the spotlight at ABEF2019, which drew in Government ministers, business leaders, international investors, academics and environmental organizations from across the globe.

The need for direct action to deliver the environmental, economic and social benefits for Africa, and particularly its coastal nations given 90 percent of Africa’s trade is conducted by sea, was stressed during the two days of insight. Speakers at ABEF2019 agreed on the urgent need for better cooperation between the ocean stakeholders, better governance and law enforcement.

Regional, national and local strategies are required to build a long-term plan and develop partnerships that are beyond short-term projects. Engaging with new technologies and innovative financing mechanisms are also key to shaping a sustainable Blue Economy in Africa.

ABEF2019

Leila Ben Hassen, ABEF founder and CEO of Blue Jay Communication, which organized the forum, said: “We can no longer just dip our toe in the water, we must dive in and be decisive in making and delivering change that will serve Africa for many years to come. It is no longer business as usual. Africa must have a sustainable Blue Business plan which will have a positive impact on the environment, on the economy and on society.”

A sustainable Blue Business plan will accelerate Africa’s transformation, create jobs, sustain livelihoods and empower communities while offering impactful climate change measures.

This was acknowledged at ABEF2019 across a range of panels with topics that explored how governments and private sectors can collaborate; tackling ocean pollution; innovative funding solutions; enhanced food security and sustainable growth for the fishing industry; sustainable ocean energy; how to engage more women to work in the maritime value chains and the opportunities to embrace the youth generation in the Blue Economy.

Key outcomes from ABEF2019 saw the World Ocean Council, Tunisian Maritime Cluster, and SETAP Tunisia signed a Memorandum of Understanding to create a platform to connect, share information, scientific research and technologies between the Mediterranean and the coastal African countries. In addition, WIMA Africa (Women in Maritime Association) launched the Tunisia Chapter with the objective of empowering women and reinforcing collaborations between Tunisian and African women in the maritime industry.

The event attracted a significant number of high-level speakers, who can drive change and opinions, including government ministers HE Samir Taieb, Minister of Agriculture, Hydraulic Resources and Fisheries, Republic of Tunisia; HE Mokhtar Hammami, Minister of Environment, Republic of Tunisia; HE Elizabeth Naa Afoley Quaye, Minister of Fisheries and Aquaculture, Republic of Ghana and HE Kwaku Ofori Asiamah, Minister of Transport, Republic of Ghana.

 

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

Facebook: https://web.facebook.com/Afrikanheroes/