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Amazon will Discover e-Commerce in Africa not a Tea Party

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By Tarila Ben-White

Feelers indicate that Amazon may now be ready to explore what the continent has to offer on the e-commerce front but the nous and experience of indigenous giants such as Konga will come in handy if it is not to stumble heavily in Africa’s biggest market.

It is no longer news that global e-commerce giant, Amazon is all but set to extend its tentacles to Africa.

Earlier this month, a South African court ordered a halt on the construction of Amazon’s new African headquarters, a massive 70,000 square metres (17.3 acres) structure. The ruling came after some descendants of the country’s earliest inhabitants said the land it would be built on was sacred.

As reported by Reuters, the Western Cape division of the High Court interdicted the project developer from continuing with works at the Cape Town site until there had been meaningful engagement and consultation with affected indigenous peoples. Among these are the Khoi and the San, two of the earliest inhabitants of South Africa, some of whose descendants had objected to the River Club development, arguing that it lies at the confluence of two rivers considered sacred, the Black and Liesbeek Rivers.

It is important to state, at this juncture, that Amazon has retained a presence in Africa for years. The e-commerce giant has several employees on its payroll working in data hubs located across Cape Town. Notably, the origin of Amazon’s current expansion into Africa began in 2004 when it set up a development centre in Cape Town. Incidentally, that centre eventually went on to build Amazon’s first cloud platform, known as the Amazon Elastic Compute Cloud which heralded its hugely successful cloud computing arm – Amazon Web Services (AWS). Today, AWS is responsible for the lion share of Amazon’s global operating income.

The firm’s adventure in Africa is thus intrinsically tied to its long-standing relationship with the South African city of Cape Town, the oldest and second largest city in that country after Johannesburg. As reported by fDi Intelligence, Amazon, in 2000, had gone ahead with plans to hire 3000 customer support staff in Cape Town. In addition, AWS, its cloud business, had plumped for Cape Town to host its first cloud region in Africa. Furthermore, nine of Amazon’s 19 projects in Africa are located in Cape Town, with five others in Johannesburg. The rest are split between Kenya, Morocco and Egypt.

The foregoing shows Amazon has established its cloud business in parts of the continent. But is it now ready to join the e-commerce race in Africa?

Although still a growing industry, the e-commerce space in Africa has begun to capture the attention and imagination of international investors. Research from Statista indicates that revenue generated via e-commerce in Africa was estimated to be around 27.97 billion U.S dollars in 2020, representing an increase of over $6bn since 2019. Correspondingly, e-commerce revenue in Africa is expected to keep up an upward curve, with estimates projecting the entire e-commerce sector in Africa to reach a value of over $46.1 billion by 2025.

Historically, Amazon is reputed to consider significant expansion into a region only when it becomes commercially viable for its line of business. But despite the fact that the promise of Africa still lies within the realms of potential rather than actuality, e-commerce watchers and analysts are of the view that a budding $46bn market in the next three years or thereabouts is more than enough justification for Amazon to throw its hat into the e-commerce ring.

Stanley Ugboaja, a Ph.D. student and e-commerce enthusiast, captures the prevailing mindset succinctly.

‘‘Africa’s population dynamics naturally makes it a frontier for e-commerce to explode in the next few years. The continent is home to the world’s youngest and second largest population. Digital literacy and numeracy is also on the rise here, same as internet penetration. Many young Africans are gaining useful exposure, either from flocking abroad for further studies or even from working remotely here for foreign firms or multinationals. When you throw in the rise in the number of fintech platforms further expanding the net of the unbanked and under-banked on the continent, you can see that the trends all tilt towards favourable conditions for e-commerce or online shopping to grow.’’

So far, on the e-commerce front, Amazon is only present in a solitary African country. That country is Egypt where Souq, an Amazon subsidiary acquired in 2017 for $580m, operates. Souq, initially founded in Dubai, UAE in 2005, was the largest e-commerce platform in the Arab world. With the acquisition by Amazon, the Egyptian site turned into Amazon.eg on September 1, 2021, officially marking the end of Souq.com.

But if, as anticipated, Amazon’s African adventure will now accommodate playing in the continent’s major e-commerce markets, Nigeria will be uppermost in its reckoning.

In addition to being Africa’s most populous nation, Nigeria remains the leading African economy in terms of nominal GDP in 2021, making up 18.4 per cent of the continent’s $2.7 trillion economy. According to the International Centre for Investigative Reporting (ICIR), Nigeria’s GDP, which measures how much a country produces in financial terms within a year, grew by 11.89 per cent from 2020 to 2021. Likewise, data from the International Monetary Fund (IMF) revealed that Nigeria’s GDP went from $429.423 billion in 2020 to $480.482 billion in 2021, making the country the highest contributor to Africa’s economic output/ GDP and the 29th in the world.

However, cutting it in Nigeria, Africa’s biggest market, will test the might and resilience of Amazon.

Currently dominated by Konga and Jumia, the Nigerian e-commerce market is a challenging ecosystem that has signaled the death knell of many promising players. Although Amazon – especially considering its roaring success in other advanced markets – cannot be placed in the same bracket as some of the startups that have quietly exited the market after finding the Nigerian e-commerce space a mountain too hard to climb, it is fitting to call to mind the instructive words of a globally renowned tech leader and Africa Chair for IEEE World Internet of Things (WIoT), Chris Uwaje.

Uwaje, who is widely hailed as the Oracle of the Nigerian IT Industry, had pinpointed the challenge in cracking the Nigerian e-commerce market as one that lies heavily in the approach or business strategy adopted by most players, many of whom fail to situate foreign business models, ideas and strategies within the culture of the people and Nigeria’s existential realities.

“Nigeria remains a fertile business environment, especially for online-focused ventures such as e-commerce companies. It is also a country with peculiar challenges and a very strong traditional approach to retail which requires a deep sense of local know-how and understanding by players. This is one of the biggest hurdles faced by e-commerce start-ups here. Many e-commerce ventures run with foreign concepts and strategies more suited to foreign climes, making it harder for them to survive the difficult terrain that is the Nigerian business space.”

But beyond the foregoing, the challenge of making a success out of e-commerce in Nigeria is one that is fraught with huge infrastructural and institutional bottlenecks.

The combination of a frustratingly underdeveloped public transport infrastructure network, absence of a proper addressing system across cities, the still-largely traditional shopping predilection of the average Nigerian and the mega-hurdle of logistics, among others, are not issues that having deep pockets alone or a popular name will solve. During the height of the COVID-19 enforced lockdown, the activities of overzealous state actors saw delivery vans conveying essential items to Nigerians delayed needlessly for days on end, or even sent back in some cases – a debacle which almost eroded the gains that accrued from the increased dependence by many Nigerians on e-commerce for safe, contactless shipping during the pandemic and which epitomised the sheer scale of some of the institutional obstacles e-commerce companies may encounter in Nigeria.

Konga, acquired by the Zinox Group from erstwhile majority owners, Naspers and AB Kinnevik, and which has become the first e-commerce company to hit profitability on the continent, may represent a fitting playbook for Amazon to study.

Considering its technology-driven status (a factor that would resonate with Amazon); a revolutionary composite fusion of online and offline which it pioneered and subsequently adopted by other players (including Amazon); the way and manner it has resolved the thorny obstacle of logistics; its massive physical assets strategically located across Nigeria (warehousing, delivery, nationwide physical stores/pick-up locations); penchant for customer service and the confidence it enjoys in the minds of shoppers, among others, Konga stands apart. However, it is in the magic of how it found a way to break the cycle of unprofitability which continues to dog other e-commerce players in Nigeria and Africa – transitioning from a business that once posted monthly losses of over N400m to emerging the first profitable African e-commerce venture – that Amazon would most admire Konga.

Most importantly, under its new owners, the current management of Konga boasts that keen understanding of successfully navigating the difficult terrain that Africa’s biggest market represents. It is a strength which has come to weigh heavily in its advantage, making the Konga template arguably the one to beat. Backed by entrepreneurs with over three decades of consistent success in the Sub-Saharan African technology space, Konga has not only thrived where others have failed or are struggling, but the business is now set, as feelers indicate, for a run across other African markets and a much-anticipated listing on major global exchanges, with a glut of external investors waiting.

Succeeding in the continent’s biggest market, even for a big name like Amazon, may mean seriously considering a partnership with Konga or at least, borrowing a leaf from its strategies.

Amazon would also have to decide if some of the unethical practices it has been accused of would unearth more dire consequences if they were exported to Africa. The e-commerce giant was recently accused of anti-competitive behavior by preventing third-party sellers from offering lower prices for their products on other platforms, including their own websites. The foregoing formed the crux of an antitrust lawsuit filed against Amazon by District of Columbia Attorney General Karl Racine, which was thrown out in court last Friday, according to a report by The New York Times. However, the suit was thrown out partly because Amazon faces a nearly identical lawsuit, in this case, a class action complaint that claims the company pressures sellers into selling products for an equal or lower price than what they offer elsewhere.

Also staring it in the face are allegations of tax avoidance which may land the e-commerce behemoth in hot waters here in Nigeria and elsewhere in Africa. Research reveals that Amazon’s tax behaviours have been investigated in China, Germany, Poland, South Korea, France, Japan, Ireland, Singapore, Luxembourg, Italy, Spain, United Kingdom, multiple states in the United States, and Portugal. According to a report released by Fair Tax Mark in 2019, Amazon is the best actor of tax avoidance, having paid a 12% effective tax rate between 2010-2018, in contrast with 35% corporate tax rate in the US during the same period. Amazon countered that it had an 24% effective tax rate during the same period.

Africa’s budding e-commerce lustre may represent an allure too difficult for Amazon to ignore. Nevertheless, it would discover that this ecosystem will tax its wits, determination, and sheer ability to adapt to their very limits.

But in Konga, Amazon can learn from a proven success story.

 

Tarila Ben-White (Ph.D.), an e-commerce researcher, writes from Bayelsa

 

 

 


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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Dr. Cairo Ojougboh Foundation Bolsters Nigeria’s Education Drive with ₦2.7m Student Support

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Dr. Cairo Ojougboh Foundation has reinforced government’s educational development efforts in Nigeria through a targeted initiative honouring the late medical doctor and House of Representatives member, Dr. Cairo Ojougboh.

Dr. Cairo Ojougboh Foundation Bolsters Nigeria's Education Drive with ₦2.7m Student Support

L-R: Son of the late Dr, Cairo Ojougboh, Mr. Nkem Ojougboh; Chairperson, Dr. Cairo Ojougboh Foundation, Mrs. Bose Ojougboh and another son, Mr. Orieka Ojougboh, during the event in Agbor, Delta State recently.

The foundation recently hosted a programme themed “Your Future, Your Choice” at St. Columba’s Grammar School in Agbor, headquarters of Ika South Local Government Area, Delta State.

It presented a cheque of ₦2,700,000 to cover examination fees for students preparing for West African Examinations Council (WAEC), National Examinations Council (NECO), and Junior Secondary School (JSS) 3 exams.

Academic excellence received further boosts with cash rewards for top students across the school’s nine academic arms, alongside distributions of notebooks and writing materials to enhance learning.

Chairperson Mrs. Bose Ojougboh, joined by her sons Mr. Nkem and Mr. Orieka Ojougboh, urged students to view challenges as stepping stones, embrace discipline, consistency, and focus, and make intentional choices shaping their futures.

“The school that moulded Dr. Cairo’s values deserves our support,” she said, highlighting the foundation’s commitment to inspiring hard work and personal growth.

Old Boys of St. Columba’s Grammar School, led by Elder Ndudi Agholor, attended in force, sharing nostalgic reflections and praising the school’s sustained high standards under current leadership.

School Principal Rev. Fr. Joseph Ugboh and Ika South LGA Chairman Engr. Jerry Ehiwarior lauded the initiative as “commendable and impactful,” calling for its continuation to preserve Dr. Ojougboh’s legacy of discipline, excellence, and service.

They noted the support had motivated students to pursue their goals with renewed determination, ending the event on a hopeful note.


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New Horizons Nigeria Breaks Ground: First to Fuse Mandarin into ICT Curriculum

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In a landmark educational innovation, New Horizons Nigeria has become the first institution to integrate the Chinese (Mandarin) language into its ICT curricular as an elective, thereby positioning Nigerian students for relevance in the rapidly changing world order.

New Horizons Nigeria Breaks Ground: First to Fuse Mandarin into ICT Curriculum

Mr. Tim Akano, Managing Director and CEO of New Horizons Systems Solutions Limited

New Horizons Nigeria is a leading ICT training and solutions provider committed to provide individuals and institutions with future-ready skills. Through innovative program, global partnerships, and strategic foresight, the organization continues to redefine education, workforce development, and global competitiveness.

With over 80% of global consumer products manufactured in China and China’s growing dominance in global supply chains and labour markets, New Horizons Nigeria recognizes the urgent need for the current generation to understand, speak, and engage with the Chinese language and culture. As global economic power dynamics evolve, the labour market is increasingly tilting towards China, making Mandarin proficiency a critical competitive advantage.

According to Mr. Tim Akano, Managing Director and CEO of New Horizons Systems Solutions Limited, Nigeria, the program represents far more than a language course.

He asserted that very soon, the global labour market is likely to increasingly reflect China’s influence rather than the predominantly western orientation it currently exhibits. Language will be a major differentiator and the first Chinese-speaking technology experts in Nigeria will have a significant advantage, especially in integration into Chinese companies operating locally and globally.

Therefore, New Horizons Nigeria has officially launched a Mandarin Scholarship Program with China Advancement Opportunity, selecting 100 outstanding students from five prominent Nigerian secondary schools. This initiative marks a major milestone in Nigeria–China educational cooperation and reflects a forward-thinking response to shifting global economic realities.

Furthermore, the scholarship program has commenced with an intensive three-month online Mandarin training and at the end of the program, the top-performing students will be selected strictly on merit. 20 outstanding students will receive an additional scholarship valued at $2,500 per students to participate in a one-year pre-degree Mandarin and cultural immersion program in China. From this group, the best candidates will progress to fully funded admission scholarships into top universities in China. This initiative is designed not only to build language proficiency but also to enhance global competence, international exposure, and cultural intelligence among Nigerian students.

Also, to maintain international academic standards, participating schools are required to comply with strict guidelines. They will be obligated to join the online classes ten minutes earlier, they must have a minimum of 85% attendance throughout the program, and must ensure they have a stable internet connectivity, reliable power supply and a conducive learning environment.

Therefore, School owners and administrators have been formally congratulated and strongly encouraged to nominate their most disciplined, and committed students, as advancement to the China program will be strictly merit-based.

However, apart from students, internation business men are equally encouraged to attend New Horizon’s Mandarin executive lessons which will equip them with basic Chinese language to enhance their business communications.

Additionally, while the pilot phase begins with selected secondary schools which includes Startrite School, Lightway School, British Nigerian Academy School, Honeyland Schools and Great Heights School, the Mandarin program will be available as an elective ICT course at all New Horizons retail centers.

This is done to extend access to students and learners beyond its partner schools and within one year, committed learners will be able to communicate effectively in Mandarin, which will open doors to global employment, trade, and cultural exchange.

In conclusion, a Mandarin Cultural Fiesta will be hosted, bringing together educators, students, institutional partners, and distinguished guests from China and Nigeria. The event will celebrate outstanding performance, cross-cultural exchange, and the strengthening of bilateral educational ties.

For enquiries and participation details, interested individuals are encouraged to contact New Horizons Nigeria via 08125541750


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Why the Future of PR Depends on Healthier Client–Agency Partnerships

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By Moliehi Molekoa, Managing Director of Magna Carta Reputation Management Consultants and PRISA Board Member

The start of a new year often brings optimism, new strategies, and renewed ambition. However, for the public relations and reputation management industry, the past year ended not only with optimism but also with hard-earned clarity.

Why the Future of PR Depends on Healthier Client–Agency Partnerships

Moliehi Molekoa

2025 was more than a challenging year. It was a reckoning and a stress test for operating models, procurement practices, and, most importantly, the foundation of client–agency partnerships. For the C-suite, this is not solely an agency issue.

The year revealed a more fundamental challenge: a partnership problem that, if left unaddressed, can easily erode the very reputations, trust, and resilience agencies are hired to protect. What has emerged is not disillusionment, but the need for a clearer understanding of where established ways of working no longer reflect the reality they are meant to support.

The uncomfortable truth we keep avoiding

Public relations agencies are businesses, not cost centres or expandable resources. They are not informal extensions of internal teams, lacking the protection, stability, or benefits those teams receive. They are businesses.

Yet, across markets, agencies are often expected to operate under conditions that would raise immediate concerns in any boardroom:

  • Unclear and constantly shifting scope

  • Short-term contracts paired with long-term expectations

  • Sixty-, ninety-, even 120-day payment terms

  • Procurement-led pricing pressure divorced from delivery realities

  • Pitch processes that consume months of senior talent time, often with no feedback, timelines, or accountability

If these conditions would concern you within your own organisation, they should also concern you regarding the partner responsible for your reputation.

Growth on paper, pressure in practice

On the surface, the industry appears healthy. Global market valuations continue to rise. Demand for reputation management, stakeholder engagement, crisis preparedness, and strategic counsel has never been higher.

However, beneath this top-line growth lies the uncomfortable reality: fewer than half of agencies expect meaningful profit growth, even as workloads increase and expectations rise.

This disconnect is significant. It indicates an industry being asked to deliver more across additional platforms, at greater speed, with deeper insight, and with higher risk exposure, all while absorbing increased commercial uncertainty.

For African agencies in particular, this pressure is intensified by factors such as volatile currencies, rising talent costs, fragile data infrastructure, and procurement models adopted from economies with fundamentally different conditions. This is not a complaint. It is reality.

This pressure is not one-sided. Many clients face constraints ranging from procurement mandates and short-term cost controls to internal capacity gaps, which increasingly shift responsibility outward. But pressure transfer is not the same as partnership, and left unmanaged, it creates long-term risk for both parties.

The pitching problem no one wants to own

Agencies are not anti-competition. Pitches sharpen thinking and drive excellence. What agencies increasingly challenge is how pitching is done.

Across markets, agencies participate in dozens of pitches each year, with success rates well below 20%. Senior leaders frequently invest unpaid hours, often with limited information, tight timelines, and evaluation criteria that prioritise cost over value.

And then, too often, dead silence, no feedback, no communication about delays, and a lack of decency in providing detailed feedback on the decision drivers.

In any other supplier relationship, this would not meet basic governance standards. In a profession built on intellectual capital, it suggests that expertise is undervalued.

This is also where independent pitch consultants become increasingly important and valuable if clients choose this route to help facilitate their pitch process. Their role in the process is not to advocate for agencies but to act as neutral custodians of fairness, realism, and governance. When used well, they help clients align ambition with timelines, scope, and budget, and ensure transparency and feedback that ultimately lead to better decision-making.

“More for less” is not a strategy

A particularly damaging expectation is the belief that agencies can sustainably deliver enterprise-level outcomes on limited budgets, often while dedicating nearly full-time senior resources. This is not efficiency. It is misalignment.

No executive would expect a business unit to thrive while under-resourced, overexposed, and cash-constrained. Yet agencies are often required to operate under these conditions while remaining accountable for outcomes that affect market confidence, stakeholder trust, and brand equity.

Here is a friendly reminder: reputation management is not a commodity. It is risk management.

It is value creation. It also requires investment that matches its significance.

A necessary reset

As leadership teams plan for growth, resilience, and relevance, there is both an opportunity and a responsibility to reset how agency partnerships are structured.

That reset looks like:

  • Contracts that balance flexibility and sustainability

  • Payment terms that reflect mutual dependency

  • Pitch processes that respect time, talent, and transparency for all parties

  • Scopes that align ambition with available budgets

  • Relationships based on professional parity rather than power imbalance

This reset also requires discipline on the agency side – clearer articulation of value, sharper scoping, and greater transparency about how senior expertise is deployed. Partnership is not protectionism; it is mutual accountability.

The Leadership Question That Matters

The question for the C-suite is quite simple:

If your agency mirrored your internal standards of governance, fairness, and accountability, would you still be comfortable with how the relationship is structured?

If the answer is no, then change is not only necessary but also strategic. Because strong brands are built on strong partnerships. Strong partnerships endure only when both sides are recognised, respected, and resourced as businesses in their own right.

The agencies that succeed and the brands that truly thrive will be those that recognise this early and act deliberately.


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