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How To Make Almajiris Digital Natives, Millionaires – Ekeh, Zinox Boss

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Serial digital entrepreneur and Chairman of Zinox Group, Leo Stan Ekeh, says Nigeria can turn the poor, nomadic children popularly called Almajiri into millionaires, employers of labour or even employable citizens if a digital solution is applied to address their peculiar plight.

Ekeh, who delivered an impassioned and workable solutions to the age-long Almajiri issue which government appears yet to find a fitting solution to, spoke as one of the panellists at the Africa Independent Television (AIT) Virtual Town Hall Forum with the theme: The Economic Implications of the New Normal Post-Covid-19 – Anticipated Revolution in Digital Economy, Business Re-Engineering, Government, Trade and Effects on Global Economic Recovery.

Speaking on the impact of COVID-19, Ekeh said one of the major classes of Nigerians negatively affected by the pandemic were the Almajiri who have been tossed from state to state like articles of trade nobody wanted to buy.

A 2014 UNICEF report estimated that there are 9.5 million Almajiri children in Nigeria, which accounted for 72 per cent of the nation’s out-of-school children. Nigeria is estimated to currently harbour between 13.2 million and 15 million out-of-school children, most of them in the North.

However, Ekeh held that with a digital approach, the potential in these Almajiri that nobody wanted to have anything to do with, can be converted to treasures of gold in the vastly growing digital economy because they are young, brilliant with huge doses of energy.

‘‘I had the privilege of engaging with some of them in Lagos and Abuja. They sound like glorious messengers and have enhanced psychology of begging which, if retrained, could make them best sales persons of the second quarter of this century. We must not abandon them.

“Among these Almajiris, there are smart people whom we can turn to coders (software Application developers) if they are fast tracked under conducive environment with quality welfare program that influences them psychologically to anticipate a wealthy future.

‘‘They are Nigerians on the street and they feel the power of wealth around them but are handicapped because of their circumstances and place of birth. We cannot abandon them. The world needs about one million coders yearly and through coding, they can become millionaires and employers of labour. They don’t need to go to the university or secondary school.

‘‘All they need is a special finishing school for about six years where they would be turned to nerds and that will mark the end of poverty in their lives and in their families,” Ekeh said. “The nation and their states must provide for them, else they shall provide for themselves to survive like others, and it could negatively impact on the society from generation to generation. If we can turn waste to productive use why not human beings created by God?”

Ekeh, who likened the COVID-19 pandemic to a war, affirmed that the best way to win a war is to anticipate it, stressing that in life, “you must be prepared to win a war before the war begins.”

He emphasised that Nigeria was not prepared for the COVID-19 war, hence the seemingly difficult struggle to deal with it.

Further, he explained that the sudden rush for e-learning in the country was what he had anticipated 15 years ago but added that the Nigerian government did not buy the proposal to make e-learning a life style among the people, noting that COVID-19 has validated his assertion that without digital technology as a way of life and doing business, a nation cannot be truly independent or sovereign in the 21st century.

He warned that companies and organisations including those in the public sector that failed to take advantage of COVID-19 realities to scale up their technologies as necessary tools in the workplace will either suffer huge loss or go into extinction.

“Post COVID-19, a lot will change; a lot of companies will die. We are witnessing huge disruption with digital solutions which have taken the form of technologies worth millions of naira invested to provide teleconferencing as we used to know it. Today, it’s Zoom. That’s disruption and such incidents will continue to define mankind.”

The Zinox boss, who is credited with pioneering a series of innovative firsts in the Nigerian technology sector, insisted that Nigeria must see opportunities inherent in the post COVID-19 economy and take advantage of them.

“I see infinite possibilities and opportunities arising from the COVID-19 pandemic. One of such was that, instead of importing face masks from China or anywhere, the government ought to have deliberately engaged Nigerians tailors, put them in school halls, give them electricity.

“ They already have their machines. By the time we create such clusters in different states, we would have locally produced face masks that would serve 200 million people and that would translate to millions of naira for the tailors and indirectly for the government. The same tailors can transit to making school uniforms, under wears, ties, bed sheets and pillow cases, designer dresses etc., after the pandemic rather than having some schools import their uniforms from Asia and Europe,” he said.

Ekeh, a global advisor to renowned technology giants, Microsoft and the first to pioneer e-commerce in Africa when he launched BuyRight Africa.com, regretted that the Federal Government lost an opportunity to help grow e-commerce when it failed to initially clearly delineate e-commerce workers as persons on essential duty and e-commerce as essential service during the lockdown.

He cited the example of Amazon which, through the support of the United States government went a long way in helping Americans observe social distancing and keeping many employed even during the lockdown.

The serial digital entrepreneur added that e-commerce is a very cost-intensive venture, noting that e-commerce companies in Nigeria such as Konga are bearing huge losses in view of the complicated and exorbitant applications which drive the business and their status as heavy employers of labour.

Nevertheless, Ekeh insists that despite the lost opportunity, e-commerce remains the future of Nigeria and Africa in terms of jobs and wealth creation. The only difference between the successes recorded here and in other climes, he disclosed, was the institutional support received by players in the sector.

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Technology

WATRA Advocates E-Governance and Technology to Boost Jobs for Youths In Nigeria, W/Africa

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WEST Africa Telecommunications Regulators Assembly (WATRA) has advocated greater adoption of e-Governance and concerted effort to expand the digital economy in Nigeria and other countries of West Africa. 

The executive secretary of WATRA, Aliyu Yusuf Aboki stated that this will boost investment and create quality jobs for young people in Nigeria and West Africa. He stated that despite the comparatively low rate of literacy in West Africa, there is a very wide scope for digitizing government services. 

He said he sees the enormous opportunity for e-governance as he travels across the 15 ECOWAS states. He explained that governments at all levels could increase their taxes dramatically by digitizing the identities of taxpayers and tax collection processes. He also emphasized that there is a great opportunity to expand access to education and healthcare through digital tools. 

 WATRA is a regional organisation that has the mandate to promote the adoption and harmonization of regulations that stimulate investment in telecommunications and increase affordable access for citizens.

 The WATRA boss cited the example of India where over 1 billion citizens, including the poorest citizens, could easily receive or make payments using their telephones through a government-supported platform, the Unified Payments Interface (UPI).

 Other government-backed digital schemes in the country enable municipal governments to manage healthcare online and citizens to store and readily access government documents such as tax returns on their phones. 

Aliyu pointed out that the digitalization of government services has transformed the lives of the 273 million Indians who are classified as living in poverty. While noting progress in the adoption of ICT to deliver and manage government services in West Africa, the WATRA boss emphasized the need to scale up existing schemes in the sub-region. 

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Africa Region

Africa’s Smartphone Market Declines 3.4% In Q1

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Africa’s smartphone market declined 3.4 per cent quarter on quarter (QoQ) in Q1 2023 to total 17 million units, the lowest level of shipments since the start of the COVID-19 pandemic in Q1 2020.  That’s according to the latest figures announced by International Data Corporation (IDC), with the firm’s newly released Worldwide Quarterly Mobile Phone Tracker showing that rising inflation and local currency depreciations against the U.S. dollar have negatively impacted demand for smartphones across the continent.

Shipments of feature phones across Africa also declined in Q1 2023, although not to the same extent as smartphones. Feature phones remain relatively affordable and are still the preferred secondary device option for many consumers.

“Africa’s smartphone declined throughout 2022 amid weak consumer demand, and this has been exacerbated by rising inflation and higher device prices,” says George Mbuthia, a senior research analyst at IDC. “The average selling price (ASP) for smartphones grew QoQ due to high import costs and the fact that many vendors’ flagship devices are now equipped with 5G and have therefore moved up in price to the premium segment.”

Africa’s top 3 smartphone markets recorded a mixed performance in Q1 2023. South Africa and Nigeria both saw shipments decline QoQ, while the Egyptian market registered growth. South Africa was impacted by seasonality issues and weak demand, meaning vendors were unable to bring in new units while they continued to clear the channel. Egypt remains below its potential, but local assembly is picking up in the country and the government has now dropped its “letters of credit” requirement for vendors, both of which have helped the market to recover from its low base.

Transsion (Tecno, Itel, and Infinix) accounted for the largest share for smartphone shipments across Africa in Q1 2023, despite experiencing a decline in units. Samsung placed second, while Xiaomi came in third.

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Africa Region

M-KOPA raises $250m to scale high-impact consumer fintech across Africa

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M-KOPA, a leading fintech platform, today announced it successfully closed over $250m in new debt and equity funding to expand its financial services offering to underbanked consumers across Sub-Saharan Africa. This marks one of the largest combined debt and equity raises in the African tech sector, enabling M-KOPA to continue its rapid growth.

Over $200m in sustainability-linked debt financing was led and arranged by Standard Bank Group, Africa’s largest bank and long-term strategic partner to M-KOPA. Other participating lenders include The International Finance Corporation (IFC), funds managed by Lion’s Head Global Partners, FMO: Dutch Entrepreneurial Development Bank, British International Investment, Mirova SunFunder and Nithio. A further $55m in equity investment was backed by existing strategic investor Sumitomo Corporation, which is contributing $36.5m to the total raise and will engage closely with M-KOPA on new growth markets and products. Blue Haven Initiative, Lightrock, Broadscale Group and Latitude, the sister fund to Local Globe, also participated in the transaction.

M-KOPA’s fintech platform combines the power of digital micropayments with the Internet-of-Things (IoT) to provide customers with access to productive assets. In markets where individuals have limited pre-existing financial identities and conventional collateral, M-KOPA’s flexible credit model allows individuals to pay a small deposit and get instant access to everyday essentials, including smartphones, electric motorcycles and solar power systems, and then graduate to digital financial services such as loans and health insurance. M-KOPA’s solution embeds credit into the product through a smart digital connection, giving customers ownership instantly, which they can pay off through micro-instalments over time. The company has sold over 3 million of these products through a unique direct sales model that includes more than 10,000 agents. M-KOPA’s operations started in East Africa and successfully expanded to Nigeria in 2021 and, more recently, Ghana. From 2020 to 2022, M-KOPA recorded a compound annual growth rate of 85% in new customer acquisition, and was recently recognised as one of Africa’s Fastest-Growing Top 100 companies by the Financial Times for two consecutive years, in 2022 and 2023.

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