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Why Nigeria’s young entrepreneurs are different

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Many African countries are at the beginning of a major shift in how businesses are run as young entrepreneurs make their presence felt using new tools and technologies that were previously not available, writes MAGNUS NMONWU, of Sage.

We are all familiar with the stereotype of the young entrepreneur; technology whizz kids with all the latest mobile devices and the ability to multitask as they type hundreds of words a minute. Sage’s Walk With Me report – which examines the key characteristics, attitudes and behaviours of young entrepreneurs around the world – confirms that there is plenty of truth in this picture of how young people work and interact with technology.

What’s more, our research in Nigeria and 15 other countries shows that we are just at the beginning of a major shift in how businesses are run as the young entrepreneurs make their presence felt. Mobile technology has already made us all much more productive and helped companies of all sizes to reduce costs and become more efficient, but most young entrepreneurs see plenty of opportunities to do even much more with the tools and apps available at their disposal.

Some of the most interesting local findings on Nigerian young entrepreneurs include:

  • 96% say that they still feel the same excitement about their business as they did when they first started it
  • 44% say they will start over 5 businesses in their lifetime
  • 42% say they would have still been able to run their business with the technology available 20 years ago
  • 38% say they socialise with their team once a month
  • 29% say that work comes before life
  • 16% say that they get out of bed in the morning because they want to make a difference in the world and do some social good

Mobile devices are the platform of choice for today’s entrepreneur and, as you might expect from a generation that has been mobile literate from an extremely young age, a large proportion place huge emphasis on technology and are keen to be at the forefront of new trends. Young Nigerians are mobile-first people, so that’s no surprise at all.

Dion Chang, founder of Flux Trends has done a lot of work with organisations in South Africa that are looking to change the way they operate to better accommodate millennial entrepreneurs. The changes can seem daunting to big corporates, he says, because in many ways the new social values of this generation mean throwing out practices we’ve relied on for decades – a 9 to 5 work day, and the traditional desk work space, for example.

Oiling the wheels of a smooth business 

More than a third of young entrepreneurs (38% in Nigeria) say the technology they use is the most important element when it comes to the smooth running of their business; they couldn’t prosper without it. 42% say they could probably not have run their business with the technology available 20 years ago. That’s an incredible stat: far from destroying jobs through automation, technology is inspiring young people to create businesses that could not have existed in the past.

When it comes to networking and new business, nearly 70% of Nigerian respondents say that they use technology rather than a face-to-face approach. Some 39% say that they depend on technology to succeed, while 44% say technology is invaluable in helping them market their business. These are numbers that would no doubt increase if we had to repeat this survey in five years’ time. Put simply, we’re seeing technology being woven into the very fabric of today’s businesses.

It’s also interesting to note how confident Nigerians are about their mastery of technology.  About 80% of young entrepreneurs in Nigeria claim that despite technology constantly evolving, they do not worry about whether they will be able to keep up. Most Nigerians (80%) also say they do not worry about whether they will be able to afford the latest technology.

Will your desk be defunct? 

Looking to the future, in the next ten years, 33% of Nigerians surveyed believe that technology will make the concept of ‘your desk’ defunct and that, in future, everyone will work remotely and flexibly, via a mobile device. Additionally, 45% agreed the workplace will have more virtual staff, working remotely and flexibly, while 23% said that they will save money on office space and overheads.

It’s intriguing to hear how young entrepreneurs are already transforming their businesses with technology, and how they expect to see the landscape keep evolving in the years to come. What we hear very clearly from our research is that young entrepreneurs in Nigeria and the rest of the world greatly value flexibility and want to have freedom over when, where and how they work, as well as with who.

For them, technology is not only a means to boosting efficiency and productivity; it is also a way to achieve the flexibility and work-life balance that they value so much. The future is mobile and we at Sage are giving our customers the power to control their businesses from the palm of their hand and embrace the future of mobility and what’s to come.

Entrepreneurs who understand the ‘giving economy’

Sage’s research showed that millennial entrepreneurs are far more focused on creating businesses that ‘give back’ to local communities and the world. At the recent Sage Summit in Chicago, the largest event for Small & Medium Businesses in the world, Zooey Deschanel and Gwyneth Paltrow spoke about the ‘Giving Economy’ and the idea that today’s consumer want more than products that will better their lives – they want to support companies that are socially conscious.

For big, established companies, this is also an important insight into how they can inspire their employees as well as their customers by having a positive influence on the community they serve.

  • Magnus Nmonwu, Regional Director for Sage in West Africa.

Africa News

Africa phones go flat

Africa’s mobile phone market declined 2.1% quarter on quarter in Q3 2018 according to the latest figures from IDC.

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The global technology research and consulting firm newly released Quarterly Mobile Phone Tracker shows overall shipments for the quarter totalled 52.6 million units, with feature phone shipments falling 2.7% QoQ and smartphone shipments declining 1.3% over the same period.

Transsion brands (Tecno, Infinix, and Itel) led the feature phone space in Q3 2018, with a combined unit share of 58.2%. Nokia was next in line with 11.7% share. Transsion, Samsung, and Huawei dominated the smartphone space with respective unit shares of 34.9%, 21.7%, and 10.2%. However, in value terms, Samsung led the smartphone market with 37.2% share, followed by Transsion (21.0%) and Huawei (13.0%).

There were differing fortunes in the region’s three major markets, with Nigeria suffering a heavy 11.6% QoQ decline in mobile phone shipments, while South Africa and Kenya saw respective QoQ growth of 8.5% and 7.9% in Q3 2018.

“The decline in Nigeria stemmed from a slowdown in government spending, ongoing warfare in the country’s northern states, and market uncertainty in the lead up to elections,” says George Mbuthia, a research analyst at IDC. “In South Africa, the market’s growth was spurred by the penetration of low-end devices from brands such as Mobicel, Mint, and Nokia, while the launch of entry-level smartphones helped drive growth in Kenya despite increases in taxes and fuel prices placing a significant burden on disposable income in the country.”

While feature phones remain steadfastly popular across Africa, particularly in more rural areas, consumers are increasingly being attracted by smartphone offerings from Chinese brands such as Xiaomi, Oppo, and Huawei, which are actively targeting feature-oriented customers at more economical price points.

“There is a new wave of Chinese brands aggressively pursuing growth opportunities in the region, while the more-established Huawei is also accelerating its marketing efforts and expanding its distribution budget,” says Ramazan Yavuz, a research manager at IDC. “These brands have quickly progressed along the learning curve and evolved their offerings to perfectly reflect the realities of the region by addressing the diverse pricing and feature needs of the consumer base.”

Looking ahead, IDC expects Africa’s overall mobile phone market to reach 58 million units in Q4 2018, spurred by the festive season and online consumer events such as Black Friday. The introduction of more affordable smartphones in the African market will help drive progress in this space over the coming quarters, while the share of feature phones will decline steadily as the transition to smartphones gathers momentum.

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Africa News

Mobile money to cross borders

Orange and MTN launch pan-African mobile money interoperability to scale up mobile financial services across Africa.

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Two of Africa’s largest mobile operators and mobile money providers, Orange Group and MTN Group, today announced a joint venture, Mowali (mobile wallet interoperability), to enable interoperable payments across the continent. Mowali makes it possible to send money between mobile money accounts issued by any mobile money provider, in real time and at low cost.

Mowali will immediately benefit from the reach of MTN Mobile Money and Orange Money, bringing together over 100 million mobile money accounts and mobile money operations in 22 of sub-Saharan Africa’s 46 markets. Mowali is ready to enable interoperability between digital financial service providers beyond MTN and Orange operations and markets, to support the existing 338 million mobile money accounts in Africa.

Mowali is a digital payment infrastructure that connects financial service providers and customers in one inclusive network. It functions as an industry utility, open to any mobile money provider in Africa, including banks, money transfer operators and other financial service providers.

The objective of Mowali is to increase the usage of mobile money by consumers and merchants.  Mowali enables money to circulate freely between mobile money accounts from any operators in all countries.  From the customer’s point of view, this means “I can pay or receive money anywhere from my mobile account regardless of my operator”. The system will unlock further innovation in the digital financial space within the continent. 

For Stéphane Richard, Chairman & CEO of Orange, “by providing full interoperability between platforms, Mowali will provide an important step forward that will allow mobile money to become a universal means of payment in Africa. Increasing financial inclusion through the use of digital technology is an essential element in furthering the economic development of Africa, particularly for more isolated communities. This solution embodies Orange’s ambition to be a leading player in the digital transformation of the continent. By joining forces with another of Africa’s market leaders, MTN, we aim to accelerate the pace of this transformation in a way that will change the lives of our customers by providing them with simpler, safer and more advantageous services. “

“One of MTN’s goals is to accelerate the penetration of mobile financial services in Africa, Mowali is one such vehicle that will help us achieve that objective. Furthermore, co-operation and partnerships that help us accelerate the pace of development and overcome some of the scale, scope and complexity of challenges that society faces are key. This partnership with Orange is therefore an important step in helping us play a meaningful role in supporting the United Nations’ Sustainable Development Goals related to eliminating extreme poverty and enhancing socio-economic development in the markets we operate in and beyond. Thus giving our customers access to a bright, digital future.” said Rob Shuter, Group President and CEO of MTN.

The GSMA supports the Mowali initiative as interoperability at this scale is a key accelerator for both financial inclusion and Mobile Money usability across Africa.  “Today, there are over 690 million mobile money accounts around the world. Mobile money services have become an essential, life-changing tool across Africa, providing access to safe and secure financial services but also to energy, health, education and employment opportunities. The creation of Mowali will help to further transform mobile financial services throughout the African region. It demonstrates the mobile industry’s continued leadership and commitment to driving financial inclusion and economic empowerment through industry collaboration. The GSMA is proud to support its development,” said Mats Granryd, Director General, GSMA.

“Interoperability of digital payments has been the toughest hurdle for the financial services industry to overcome, in support of financial inclusion. With Mowali, Orange and MTN deliver a solution that will enable them, and other companies, to scale digital financial services across Africa, faster, to everyone—including the poor,” said Kosta Peric, deputy director of Financial Services for the Poor, at the Bill & Melinda Gates Foundation “This is a signal that a new wave of innovation, which can help alleviate poverty and drive economic opportunity, is coming. We’re pleased to see an implementation of Mojaloop—an open source payment platform available to operators across the sector—help achieve that.”

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