The New Economy of Africa Part 1

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Nigeria’s ICT (information and communication technologies) sector has grown from less than 1 percent of GDP in 2001 to almost 10 percent of GDP today (OC&C Consulting, 2018).

Nigeria has also surpassed South Africa to emerge as a premier investment destination with 55 active tech hubs raising a total of US$ 94.9 million, while South Africa raised US$60.0 million with 59 active start-ups(Usman, Choi, & Dutz, 2019).

The country is also Africa’s biggest technology market and accounts for 23 percent of internet users in Africa with 122 million people online in December 2018 (Internet World Stats, 2019).

The Nigerian tech sector has benefitted from entrepreneurs moving to the country to set up companies (Bright, 2016).

In 2012, two Harvard Business School graduates cofounded Jumia, a Nigerian e-commerce site and one of the first tech start-ups in the country.

Nigeria’s tech sector has often found creative solutions to fill gaps left by the state. A weak public education system has provided room for education (“edutech”) start-ups that try to make learning more accessible and effective. Financial technology (fintech) start-ups are looking to engage segments of the population that cannot access traditional financial services.

Below are some of Nigeria’s greatest Tech factor that gas really helped individuals.

1. Accountinghub

Accounting firms in Nigeria are expensive and mostly target larger corporate clients; they are not designed to work for small businesses. This is a significant problem for the sector as poor accounting is one of the top reasons why many small businesses fail.

Sensing the gap in the market, Chioma Ifeanyi-Eze set up Accountinghub in 2015 to provide bookkeeping services to small businesses. It brings together a collection of accountants and consultants to offer quality accounting services in an online marketplace, allowing businesses to quickly arrange and pay for a variety of services.

More recently it has also launched an online academy with courses for small business owners on the basics of finance and bookkeeping.

With its office in Lagos, Accountinghub has helped over 250 small businesses across a variety of sectors and has hired 20 accountants (Independent, 2017). It also has a dozen or so clients located in Abuja, and Ms. Ifeanyi-Eze plans to set up another office in the capital soon(which by now would have occured).

2. LifeBank

One of the major challenges for the healthcare system in Nigeria is the shortfall in equipment and supplies at health facilities. The story is no different for blood, which is needed for transfusions during surgeries and related procedures. 

LifeBank, a Nigerian start-up founded by Temie Giwa-Tubosun, is a social enterprise focused on developing a better way of delivering blood to hospitals in Lagos. Using WHO-approved equipment, LifeBank has transported about 9,000 pints of blood and saved more than 2,000 lives (Kiunguyu, 2018).

The case of blood shortages in Nigerian hospitals is not necessarily a tale of inadequate supply, but rather the inability to locate the required blood type in time. There are plenty of blood banks in Lagos that collect, test, and store blood for use.

However, hospitals traditionally worked with only one or two banks, and this limited the amount and types of blood they had access to.

The main achievement of LifeBank has been to link hospitals with blood banks through its online platform. LifeBank has 40 blood banks and 300 hospitals on board currently and continues to expand (Kiunguyu, 2018).

The team sorts orders based on urgency, location, and price and keeps its blood deliveries at the optimal 10 degrees Celsius. Riders deliver the blood in boxes that can be opened by the recipient only via a Bluetooth connection or key.

3. Konga

 

Although the Nigerian tech sector is experiencing a boom, there are still plenty of risks for tech enterprises in the country. Investors are reluctant to do business in the country, given the lack of profitable exits and some high-profile failures.

One such example is the online retail business Konga, established in 2012. As one of the first start-ups in Nigeria to win major backing from VCs, there were high hopes for its success.

However, it has struggled to establish online shopping as a viable business at scale in Nigeria, given the many logistics and supply chain difficulties in Africa’s largest economy. Konga’s activen customer base in 2016 was 184,000, which is less than 1 percent of the country’s population (Kazeem, 2017).

Towards the end of 2017, Konga cut 60 percent of its staff in a bid to stem losses, despite raising nearly $100 million in investment since its start date (Kazeem, 2017).

Two months later it was let go in a fire sale after investors refused to offer more cash, destroying much value and jobs in the process.

The Economy of Africa basically Nigeria is really a large scale that has to be looked into as citizens of the country.

Kindly follow for more update on the information.

Also kindly share for a lot of people needs to know about the Economy of Nigeria and how far we have gone.

Be blessed!

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