Broadcasting
Konga, True Business Case for Emerging African Entrepreneurs
By Lere Abinuwa
I have read and digested the very comprehensive independent submission made by e-Live consultant, Kelvin Mulungwe on the e-commerce race in Africa between Jumia and Konga.
The submission is one I recommend for all young African entrepreneurs who want to mount the global stage as successful entrepreneurs. This is a very important investigation which basically shows why foreign entrepreneurs fail and what young Africans must do to create real business and not just hype.
The Konga strategy is a masterstroke, and I am not surprised because of their place of birth and extensive experience of the local market. It encourages other Africans particularly Nigerians on how to approach business strategies in the 21st century because things have changed. Business schools abound everywhere, but Africa’s most certified business strategy is common sense. Like Elder Christopher Kolade once said at a seminar, sometimes it makes sense to be number two in your sector but profitable to investors against wasting cash without instituting the fundamentals.
After reading the publication in Nairametrics, I noted critical points why my first place of work when I returned from abroad failed. With an MBA from an Ivy League University in the US, it was an embarrassment, especially considering the fact thatit was a big finance house.
My second place of work was better before I returned to States and few years later returned to Nigeria to work as a consultant to a multinational. I am happy that there are very strategic African entrepreneurs like the guys at Konga.
I must say Konga is a pride to Africa. This is the time for Africans to attain global leadership in what they do with our peculiar deficiency in infrastructure, etc. I have also checked across the globe most in the e-Commerce sector: locally owned companies are leading, even in established countries like USA, China, India just to mention a few.
A few essential learning points stand out for me in the examination of the Konga strategy.
First, the decision of the management of the new Konga to risk its own funding to build a sustainable business, rather than rush to the market to burn investors’ money is highly commendable. The lesson taught in most business schools is to use people’s money to run one’s business, but it is important to note as an entrepreneur that utilizing your hard-earned funds to grow your business instils a keen sense of discipline, focus and keeps one feet on the ground. Information received from sources close to the company have it that Konga was burning through losses of almost N400m a month after acquisition. However, it is to the credit of the astute management of its current owners that it has now believed to have cut losses drastically to near zero.
Secondly, the strategy of the current owners of Konga in building up its own infrastructure including logistics, warehousing and payments system, among others, justifies its faith in not only its internal competencies but also its confidence in Nigeria. More importantly, it reveals the keen understanding of the market and an uncommon insight by the management of the company in avoiding the pitfalls that have crippled other e-commerce players.
As the analysis revealed, the combination of a decrepit transport infrastructure and unreliable physical addressing system in major cities means that any serious player in the Nigerian e-commerce sector must build their own logistics superstructure. This is one thing the management of the new Konga has done arguably well, with a cousin of mine who worked with the company in the past and who is now in Canada on further studies, disclosing that Konga has shown that it has the capacity to compete favourably with any other brand, local or foreign-based in the sector. This is a big confidence boost for other local or African-based entreprenurs.
Thirdly, the presence of a CBN-licensed payments system in KongaPay is another edge or strategy that sets Konga apart. As the researcher revealed, KongaPay was recently certified by a leading global consumer market data firm as the foremost enabler of online shopping in Nigeria. Owning such a certified fintech is a factor that has quadrupled the value of Konga, especially when it chooses to go public. Most businesses that own fintech platforms hardly combine it with other businesses, but this is not the case with Konga which can count on a growing chain of subsidiaries across other verticals which KongaPay services.
The fourth strategy of the new Konga which also distinguishes it from the rest of the field is the approach to ensuring that all of the entities within its folds acquires core statutory and industry-recognized certifications. In addition to KongaPay which is licensed by the CBN; Konga Travel, its online travel and tours booking agency has attained the IATA certification, among others, while Konga Health, its latest subsidiary, equally has met and satisfied the relevant certification of the Pharmacists Council of Nigeria (PSN) as a recognized distributor of quality medicines, drugs and other medical supplies, while also recently signing an agreement with the umbrella association of private medical doctors in Nigeria.
These factors make Konga a brand that would undoubtedly be regarded even more than a Unicorn in valuation, but as a true African e-commerce elephant.
When one equally considers the submission of the researcher, who noted that Konga, within a space of three years after its acquisition by the Zinox Group, has now turned profitable, becoming the first e-commerce player to achieve this feat in Africa, there is even more impetus for the Konga strategy to become a template to be voraciously studied by budding African entrepreneurs desirous of making an impact on the continent.
Lere Abinuwa writes from FCT, Abuja
National Broadcasting Commission (NBC) has said that Nigerians will no longer pay annual Digital Access Fees under the renewed Digital Switch Over (DSO) project.
Charles Ebuebu, director-general, NBC, disclosed this in an exclusive interview with the News Agency of Nigeria (NAN) on Wednesday in Abuja,
Ebuebu said viewers only need to purchase an approved decoder and satellite dish which cost below N20,000 to enjoy free television permanently.
“Previously, users paid an annual digital access fee of about N1,500, described as an administrative charge.
“The new system removes that annual fee. It provides free access to free-to-air television channels without any payment.
“Premium channels will be introduced later. Viewers who want those additional channels will be able to access them through paid services.
“Nigerian content on free-to-air channels remains free to watch. Unlike Pay TV, this platform does not require monthly subscriptions for its basic service,” he said
Ebuebu said approved decoders for the FreeTV will cost less than N20,000 and authorised sales outlets will soon be announced.
He urged Nigerians to wait for official information on approved dealers for the DSO decoders, warning that unauthorised sellers are exploiting growing public demand.
He reiterated that people only need a free-to-air decoder, along with a satellite dish instead of the old antenna system to receive the DSO signal.
“Once the equipment is installed, viewers can access all available channels across the country without paying any subscription fees,” he stressed
The DG dismissed claims by some retailers that there are different categories of decoders sold at varying prices, stressing that such sellers are not authorised by the commission.
According to him, the NBC will soon publish the list of approved dealers, official prices, and locations where genuine decoder boxes and accessories can be purchased.
The NBC boss said the DSO project is designed not only to improve television broadcasting but also to stimulate economic growth by creating jobs, attracting investment, and opening up opportunities for businesses that support the broadcasting industry.
Ebuebu noted that content producers and broadcasters stand to benefit significantly from the nationwide reach of the DSO platform.
Unlike the previous system, where many stations had limited regional audiences, he said the new platform will make their channels available to viewers across Nigeria.
He added that the introduction of audience measurement technology will provide scientific and reliable data on television viewership.
Ebuebu added that audience measurement technology will give advertisers greater confidence in placing adverts and enable broadcasters to demonstrate the true size and reach of their audiences nationwide.
Uchenna Mbunabo, Nigerian filmmaker, has raised concerns over the alleged unauthorised broadcast of Nollywood films by some Ghanaian television stations, calling on Ghana’s National Film Authority (NFA) to strengthen the enforcement of copyright laws.
Uchenna Mbunabo, Nigerian filmmaker
Mbunabo made the remarks during a conversation with James Gardiner, deputy CEO of the National Film Authority (NFA) of Ghana.
He questioned whether it was permissible for television stations in Ghana to download Nigerian movies from YouTube and air them without obtaining permission from the producers.
“I noticed that Ghanaian TV stations, the way they are stealing our films and showing them for free with impunity. Is it legalised in your country for TV stations to go on YouTube, download people’s sweat and show it for free?”
According to Mbunabo, some Ghanaian television stations have been downloading newly released Nollywood films from YouTube and broadcasting them without authorisation, depriving producers of revenue generated through the platform.
He also stated that he had not witnessed Nigerian television stations engaging in similar practices and questioned what measures Ghana was taking to protect filmmakers’ intellectual property.
Responding to the concerns, Gardiner acknowledged that the issue exists and said the National Film Authority had begun engaging relevant stakeholders to address it.
He disclosed that the NFA has held discussions with the Ministry of Communications, the National Communications Authority (NCA) and the National Media Commission (NMC) on improving copyright enforcement.
Gardiner explained that while Ghana has copyright laws, enforcement remains challenging because many television stations now operate digitally and may not have physical offices within the country.
“There are copyright laws, but they are not effective because a lot of the TV stations don’t have offices. Most of them are now digital, so they operate from anywhere. They can even have a Ghanaian TV station but be operating from Austria simply because it is digital.”
He added that authorities are considering a new licensing framework that would require broadcasters to undergo a fresh licensing process to improve monitoring and enforcement.
According to Gardiner, television stations found guilty of illegally broadcasting copyrighted content would be required to compensate affected producers through fines.
He added that repeat offenders could face suspension of their broadcasting licences, while a third violation could result in the revocation of their licences.
Although he did not provide a specific timeline, Gardiner said the reforms were already underway and expressed hope that significant progress would be seen next year.
Mbunabo welcomed the proposed measures but urged the National Film Authority to expedite the process, stating that unauthorised broadcasts continue to affect filmmakers’ ability to recover production costs through legitimate distribution channels such as YouTube.
He also stressed that his comments were not directed at Ghana’s film industry, noting that he has worked with several Ghanaian actors over the years and supports collaborations between Nollywood and Ghallywood.
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