A new report released over the weekend by Standard Chartered Bank titled Trade20 Index has identified Cote D’Ivoire and Kenya as some of the rising stars in global trade. The Index which examines 12 metrics across 66 global markets made up of major global economies plus the major economies in each region reveals 20 economies that are most rapidly improving their potential for trade to grow with African economies making the first and third in the Standard Chartered Trade20 Index, which identifies the markets with the greatest potential for future trade growth
Saif Malik, Regional Co-Head, Global Banking, AME, Standard Chartered
According to the Report, Côte d’Ivoire is the market that has most rapidly improved its trade growth potential over the past decade. The Report which identifies the 20 rising stars of trade places African markets Côte d’Ivoire in the top spot and Kenya at number three. The Trade20 index determines each market’s trade growth potential by analysing changes within the last decade across a wide range of variables, grouped into three equally-weighted pillars: economic dynamism, trade readiness and export diversity.
The Report which examines 66 markets around the world points out that while existing trade powers like China and India continue to rapidly improve their trade potential, African economies are making particularly strong progress from a relatively low starting point. Kenya, it said, is consolidating its position as the trading hub of East Africa, while Côte d’Ivoire is cementing its position as a West African trading hub. Ghana also performs well in the index, placing just outside the top 10.
A breakdown of the findings of the Report show that Côte d’Ivoire and Kenya have significantly improved their trade readiness, demonstrating that investments in infrastructure and business environment improvements are paying off. Côte d’Ivoire and Ghana also fare well for economic dynamism, with Côte d’Ivoire enjoying robust GDP and export growth, and Ghana seeing an influx of FDI
Commenting on the findings, Saif Malik, Regional Co-Head, Global Banking, AME, Standard Chartered, said that Africa being home to some of the world’s fastest-growing economies, has the potential to become a much bigger player on the global trade stage. He noted that the continent is already connected with the trading powers in Asia, particularly China, through the Belt & Road Initiative, and with the launch of the African Continental Free Trade Area, we see numerous growth opportunities for trade and investment in the years ahead. Mr. Malik equally noted that the growing young, digitally-savvy population and an increasing female workforce will aid in the continent’s economic transformation.
While most traditional trade indices are based on a market’s present performance, the Trade20 index captures changes over time to reveal the markets that have seen the most improvement within the last decade. This enables us to identify the economies where recent positive developments may point to acceleration in trade growth potential.
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.
Glovo now exists in Kenya, Morocco and Cote d’Ivoire, with plans to expand to Ghana, Nigeria, and Tanzania. The startup which was co-founded by the 26-year-old Barcelona -based Oscar Pierre in 2015 has raised over $340 million since it was founded and is already displacing major players in the crowded delivery industry.
Here Are Quick Facts About Glovo:
Barcelona-based Glovo is the on-demand delivery app that allows customers to order anything — restaurant meals, groceries, flowers — from more than 1,000 participating businesses and have it delivered in less than one hour.
Simply put, the startup is known as the “anything” delivery app.
Glovo makes profit by charging a service fee, plus a commission on their partners, depending on the cost of the product or item.
The most interesting fact about Glovo may be that despite being founded only about 4 years ago in 2015, the company already has a presence in 178 cities across 23 countries.
The startup’s vision is to be a lifestyle app with all urban services available easily through its smartphone application.
Food delivery service remains its most popular service. Other services available on the app include Groceries, Pharmacy, Desserts, Courier, and Quiero (anything).
While most companies are very focused on food only, Glovo can, however, deliver everything.
The food business allows users to find and place orders with their favorite restaurants which is picked up when ready and delivered to the user’s doorstep. Today, more than 85% of Glovo’s orders in Europe are for food.
Unlike the other couriers — namely the UK-based Deliveroo and US-based UberEats — Glovo couriers don’t just pick up food for customers of the app. They’ll also buy them a particular dress in a size 12 from Zara, or grab some painkillers from a pharmacy if the customers so request.
While this model continues to be its flagship service, the company is reportedly experimenting with CloudKitchens and Grocery Darkstores.
In fact, the startup has become so successful that Bloomberg said Glovo could now be worth €650 million ($730 million)
The firm’s revenue jumped from €18 million ($20 million) in 2017 to €81 million ($91 million) last year.
Over 200 key players are defining the Barcelona startup tech ecosystem
‘‘We…Found Our Gap’’
Glovo is not the first delivery app out there. Oscar knew this. In fact, at the time of starting up Glovo, there was already the US firm Postmates (which inspired him) that delivers anything a city-dweller might need or want, as well as Uber and Amazon’s Deliveroo that do similar things. This means the startup is already in direct competition with those companies. Thus, it is rather surprising that Glovo would make such quick success.
‘‘It makes the market more difficult,’’ Oscar told Spanish online magazine Viaempressa. ‘‘We have found our gap; we are the only platform in Europe that supplies the user with anything in the city, and I think that this is the key; the offer is broad. It doesn’t scare us that the competitors are large, being small is a competitive advantage because it means we can react quickly to these monsters. They are very powerful, but they move slowly. A clear example is our partnership with McDonald’s, for which we competed against Uber Eats and Deliveroo. We got it because we were the quickest to come up with a model that McDonald’s needed, it is specific for them on a technological and logistical level. When you are a startup, you bargain more easily.’’
Pierre also said there are many differences between Glovo and other national or international startups.
‘‘Our freelancers will buy for you whatever you want,’’ he said . ‘‘Another major difference is that our service is based on immediacy. We have a totally different model compared to other apps dedicated exclusively to transport people or deliver food. In addition, we are not a logistics company, nor do we want to be. These companies are only dedicated to collect and deliver while we put a whole city open to anyone.’’
Getting The Timing Right is Crucial
Getting into a crowded market could be easy but staying successful would remain the toughest game startups will face. Oscar Pierre, however, said getting the timing right is crucial. Glovo doesn’t come on board a country where there are already two dominant players (which is the case in Mexico, Colombia, and the UK), he said.
‘If we went to the UK today it would be super tough or impossible to become one of the main food delivery companies. It’s a snowball effect; as you don’t have the volume, you don’t reach to the top chains or restaurants which doesn’t give you the growth,’ Oscar told Sifted, a new FT-backed website that launched early 2019.
Again, the startup succeeded in Spain mostly because it brought big brands such as McDonald’s and KFC onto its app and this led to ‘massive growth’. Before then, competitors like Deliveroo refused to meet the big companies’ demands. This was an opportunity Glovo held onto. ‘‘We literally built anything they wanted,’ Pierre said.
Today, Glovo is the biggest food delivery service in Spain (where it is profitable and takes around one million orders per month)
Oscar said: ‘Every single city needs between six to nine months to reach operational break-even. Structure-wise, it’s been super interesting You have to delocalize — otherwise the company stops. You need to find super strong regional teams. In Buenos Aires, Argentina, we have a very senior team, with almost a CEO and CMO, and they take all of the decisions.’’
‘‘We pitched to 118 funds, and all of them said ‘no.’ ’’
Oscar said building the startup did not come without a fight. He said the startup pitched to 118 funds before its current progress.
“For our series B round, we pitched to 118 funds, and all of them said ‘no.’ We were very close to going bankrupt, maybe a month away. All our competitors were huge. Two years ago, there was no way to convince investors that we’d really be competing face-to-face with Uber Eats or Deliveroo. There was very little conviction about food delivery back then.
Being from Barcelona was always very tough because when you only operate in Spain, you don’t have access to the VCs in London or in France. The Spanish ecosystem of VCs is very small and very risk-averse,” he said.
In 2017, Glovo raised $30 million in a series B funding round led by the Japanese tech giant Rakuten. Rakuten ended up being a company with a famous connection to Barcelona that came to Glovo’s aid.
‘‘One day, Rakuten came out of the blue and decided to invest in us,” Pierre said.
Since then, two other funding rounds have followed, the latest of which, totaling 150 million euros, or $170 million, was led by the early Spotify investor, Lakestar, in April, 2019 taking the startup’s total funding to $340 million.
Glovo renders delivery services for anything the city has to offer and is learning, growing and improving fast.
Remembering those periods in the startup’s story, Pierre said he didn’t know if he were doing a rational thing then.
‘I have to say, I don’t know if it was a very rational investment at that moment — when you have over 100 smart investors saying no, it might mean something,’ he said.
Oscar said the most important factor that has guaranteed the startup’s continuous growth is its quest to remain profitable.
‘‘Only those who focus on profitability get funding,” he said. “We make sure we are not only growing, but that the cities are not in negative numbers for many months. We know there are cities that need only six months to show losses and others, 12 months, because it all depends on size; but we know that sooner or later we will get good numbers. In Spain we have seen more than 10 proposals similar to ours and many of them have failed. The margins are small and if you do not look after them well, it will not work,’’ he said.
Focusing on profitability has helped the startup to steer clear of loss. In 2016 Pierre said the startup obtained 1.1 million net euros in profit, which represents the commissions from their partners and shops along with what the user paid for the service, and that meant tenfold growth. In 2017, barely two years and two months old, the startup took a millionth order. The number has since doubled.
‘When a sector is overfunded…investors disappear’
Pierre said the urge for startups to get funded almost always comes with a price — a sudden disappearance of investors.
‘‘Delivery is a complicated sector. Between 2010 and 2012, there was overfunding in Barcelona. It was new and grew quickly because it clearly had value. A lot of projects were funded that began to close down in 2014 and that went on for another couple of years. That was just the moment when we began looking for funding. The investors saw that the sector was in fashion, but that it had problems. And what happens when a sector is over-funded is that the investors disappear,’’ he said.
The Best Way To Confront Fund-Raising
Pierre said the best way to confront fund-raising is by being humble.
‘Our most important core value is humbleness. I tell it to the team a lot. I’ve seen companies burst because of lack of humbleness,’ he said.
‘Every time I go to the board, I’m like, “Oscar man, if you’re not taking big steps you’re not going to be the best CEO for this company.” So I just keep that in my mind all the time.’
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.
This year’s Africa Young Hero Award goes to Megane Lorraine Ceday Boho of Cote d’Ivoire for earning the highest accolade a young person can achieve for social action or humanitarian efforts – The Princess Diana Award. Celebrating its 20th anniversary, the Award was established in memory of Diana, Princess of Wales, and is given out by the charity of the same name and has the support of both her sons, The Duke of Cambridge and The Duke of Sussex.
Passionate about putting gender equality at the heart of economic development, Meganne started providing free coaching to people applying for fellowships. With her association SEPHIS, she set up “The SEPHIS National Tour for Women Empowerment”.
In the last two years, they have raised more than $30,000 and trained more than 1,800 young women. She is dedicated to providing young women with the opportunities to further their career, for example, she gave free French classes to English speaking participants at a fellowship gathering 100 young people from West Africa. Through her position of Account Manager at African Media Agency (AMA), she has been able to work on big events like the Africa CEO Forum, The Next Einstein Forum, and Africa 2018 Forum.
Tessy Ojo, CEO of The Diana Award, said: “We congratulate all our new International Diana Award Holders who are changemakers for their generation. We know by receiving this honour they will inspire more young people to get involved in their communities and begin their own journey as active citizens. For over twenty years, The Diana Award has valued and invested in young people encouraging them to continue to make a positive change in their communities and lives of others.”
Commenting on Meganne’s award, Sefora Kodjo Kouassi, President of SEPHIS added “I am very proud of Meganne who constantly impresses us with her positive impact on the Association. This distinction is a testimony that Meganne is a truly inspiring model for her generation”.
“This Award is the recognition of Meganne’s dedicated work to women’s empowerment. We hope she will continue to inspire many young women in Africa to create a better future for generations to come”, commented Eloïne Barry, CEO of Africa Media Agency.
Award Holders have been put forward by adults who know the young people in a professional capacity and recognized their efforts as a positive contribution to society. Through a rigorous nomination process, these nominators had to demonstrate the nominee’s impact in five key areas: Vision, Social Impact, Inspiring Others, Youth Leadership, and Service Journey.
There are 13 Diana Award Judging Panels representing each UK region or nation and a further two panels representing countries outside of the UK. Each panel consists of four judges; Two Diana Award Holders, an education or youth work professional, and a business or government representative.
The panels have an important main purpose: to determine which nominations from each UK region/nation will receive The Diana Award. Nominations are judged using the Criteria Guide and Scoring Guide which have been created to measure the quality of youth social action
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.
