Broadcasting
Jeff Bezos, Amazon and e-commerce Wealth: Can Konga Defend Africa’s Position?
By Kingsley ‘Bobby’ Collins
On Tuesday, July 6, 2021, the world awoke to the news that Jeff Bezos, founder of e-commerce giant, Amazon, had further left the rest of the world behind in the wealth accumulation race.
The Amazon boss and world’s richest man is now worth a record $211 billion.
In the process, he became the richest ever person in history and the first to gross $211bn. Reports in the media indicate that the last time anyone neared this amount was in January when Tesla boss, Elon Musk briefly hit $210 billion.
Bezos’ latest jump came after Amazon shares rose 4.7% after the Pentagon announced it was cancelling a cloud-computing contract with Microsoft Corp, which it had rivalled for the juicy contract. The development raised Bezos’s fortune by $8.4 billion, according to the Bloomberg Billionaires Index.
Interestingly, Bezos’ rise to the record books of stupendous wealth through his e-commerce money-spinner has also had a direct impact on his ex-wife.
Mackenzie Scott, who parted ways with the Amazon boss in 2019, also saw her wealth jump by $2.9bn on Tuesday, making her the 19th-richest person in the world, according to Forbes. Scott ended up with 4% of Amazon’s shares after she split from Bezos, having helped him start the e-commerce company in 1994 as the first employee.Despite publicly announcing that she has given away over $6bn since she divorced Bezos, the philanthropist ex-wife of the Amazon boss is still worth a massive $59bn. Meanwhile, Scott had recently re-married after falling in love with a science teacher, Dan Jewett, whom she met at her son’s school in Seattle.
Indeed, the rise of Jeff Bezos brings into glaring highlight the unmitigated power of e-commerce.
For many financial experts and other industry watchers, the potential is there for Bezos to eventually smash through the billionaire mark and become the world’s first trillionaire. This is hardly surprising when you consider the sheer potential of the industry and the way it has catapulted Bezos – whom many hardly gave a chance when he started out – to the zenith of the global rich list.
Global spend on e-commerce is at an all-time high and one can hardly bet against any seasoned player in this industry.
Empirical data from Statista, a German-headquartered company focused on market and consumer-based insights reveals that in 2020, retail e-commerce sales worldwide amounted to 4.28 trillion US dollars. Further, it projects that e-retail revenues are projected to grow to 5.4 trillion US dollars in 2022. With such huge figures swirling around the industry, it would hardly come as a surprise to see Amazon and its record-breaking former CEO, Bezos re-defining the definition and frontiers of wealth in the 21st Century.
Evidence from advanced economies the world over has shown that e-commerce and, by extension, technology remains arguably the most prominently positioned industry capable of determining the wealth of nations.
If you take a look at the top five list of the most valuable countries in the world, or better still, focus on how countries like the United States of America, the UK and China, have leveraged the power of local enterprise in creating thousands of jobs and ushering in prosperity for generations yet unborn, the pre-eminence of Big Tech and e-commerce behemoths in the mix, cannot be wished away. Undoubtedly, the example of Jeff Bezos, who is currently sprinting away from the rest of the world in the art and science of amassing sustainable wealth, is one that has shown that e-commerce is the future.
Gone are the days when crude oil or fossil fuel was considered the bastion of wealth generation; or when the strength of nations was illustrated in the amassing of arms and warheads.
The 21st Century is slap-bang in the middle of a global e-commerce race, one in which the second half of this century may well usher in a period where nations and entire continents will rely on mega-players as key partners to governments and other sub-national entities in the task of sustainable development and wealth creation.
But where does this leave Africa in the scheme of things?
In 2017, e-commerce in Africa was valued at $16.5 billion, with the sector expected to cross the $75 billion mark by 2025.
However, the reality is that the global e-commerce race is one in which Africa is currently punching lightly in. The continent is in need of a standard-bearer, a reliable leader which it can count on to hold its own in the global scheme of things.
Of all the current players in the African e-commerce space, Konga, a Nigerian-owned platform remains, in my estimation, the most equipped and best placed to deliver the goods.
The reasons are hardly far-fetched.
I have followed e-commerce globally for over 10 years and while Africa is still considered an outlier in the global e-commerce race, the massive strides recorded by Konga over the past three years make the company a powerful candidate that can rival the likes of Amazon and Alibaba, among others.
On a recent trip to Nigeria, I had confirmed the huge excitement that Konga was generating among investors in the international market over a potential listing on world renowned stock exchanges, such as the New York Stock Exchange (NYSE) and the London Stock Exchange. Konga is – to put it in the words of one of my acquaintances, a business partner and one of the UK’s most active angel investors – a pot of gold that he is waiting to put his last dollar in.
According to this acquaintance (who I cannot name owing to privacy concerns), Konga is a business out of Africa that himself and many others, who hold huge investment interest in e-commerce, are following closely. In his opinion, there is currently a waiting game for Konga to go public, even as he disclosed that he had recently reached out to the management of the company on this.
While in Nigeria, my research uncovered quite some interesting facts and opened my eyes to the buzz about Konga.
Indeed, there is hardly any other e-commerce player in Africa that can account for the leverage which Konga is currently enjoying as a result of its composite nature. Brick and mortar stores were a recent addition to the sphere of e-commerce which centred, from inception, on online shopping. But the management of Konga had the insight of being the first to fuse these two channels, thereby opening up a new frontier in the world of e-commerce. It is hardly surprising to see the likes of Amazon following suit.
But this is hardly what has made Konga the ideal candidate to defend Africa’s position in the global e-commerce race.
In Konga, Nigeria and Africa have a brand that has defied the pitfalls that have long been adduced as the downfall of most players on the continent. These include payments, logistics, technology, customer service, warehousing/inventory management, quality of products offered, ethics/corporate governance, strategy/tact and trust.
In all the aforementioned areas, Konga is winning.
Through KongaPay, a mobile wallet licensed by Nigeria’s Central Bank, Konga remains arguably the only e-commerce player in Africa with a certified payment system. Furthermore, Konga has resolved the challenge of logistics which it even aids other external parties troubleshoot through Kxpress, its in-house delivery company. No other company better understands the terrain in Africa’s biggest economy than Konga – a factor that testifies to the edge that the company holds even when pitted against global giants like Amazon and Alibaba on this turf. My findings also reveal that the company owns either directly or indirectly about 14 massive regional warehouses across Nigeria, including the biggest in Lagos, Nigeria’s commercial nerve-centre.
In the area of technology, Konga is believed to be home to a well-fortified arsenal of tech talents building and maintaining the many apps driving its operations and keeping many fintech platforms alive in Nigeria. This is in addition to its ongoing investment in cloud computing and AI.
There are reports that the company has also recently diversified into the healthcare sector, with feelers predicting that another major disruption is in the offing.
And in the area of products quality, ethics and trust, Konga has further put a big gap between itself and others. There is a general consensus among thousands of Nigerians who participated in a survey I carried out that Konga remains the most reliable and trusted player in Nigeria’s e-commerce market, which research shows, currently accounts for nearly 35% of the African whole.
Equally worth hailing is the fact that Konga, till date, is yet to raise any form of external investment. This is a big testimony to the belief of the management of the company in its strategies and long-term vision for the business.
There is no disputing the fact that the management of Konga has mined from the experience of its current owners – the Zinox Group – whom I understand, operate arguably Africa’s biggest technology group and who have been in business for many successful years. One can only advise the management of Konga to stay true to their tact and continue to interpret and align with the DNA of their business ideals.
In Konga, Africa has a battle-ready war-horse that the continent can ride on in unlocking the undoubted potential of e-commerce as the new gold.
The earlier the Nigerian Federal Government and its counterparts across the states wake up and embrace this powerful platform, the better for the future fortunes of the country.
Kingsley ‘Bobby’ Collins is a visiting researcher to Nigeria and a global e-commerce enthusiast
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.
Broadcasting Organization of Nigeria (BON) has established six committees to help strengthen and modernize the country’s broadcasting industry.
The committees will focus on content creation, skills development, digital transformation, sustainability, policy and commercial opportunities
The initiative aims to support industry growth and improve collaboration between broadcasters, regulators and media experts
The official launch recently, was led by Tony Akiotu, president, BON and attended by media professionals, program directors, former journalists and heads of specialized media organizations.
The event brought together several prominent figures in Nigeria’s media industry, including veteran broadcaster and trainer Bimbo Oloyede, Tony Uyah of M4S TV, Kingsley Uranta of Channels Television, Ismael Sani of Platinum TV and Ibrahim Shehu of Trust TV.
Together, they are expected to help drive innovation and support the growth of Nigeria’s broadcasting sector.
According to Akiotu, the committees are intended both to help shape industry policy and to provide a forum for dialogue between BON and broadcasting experts.
Akiotu said the ad hoc committees were intended to strengthen BON’s work and ensure that the umbrella body for Nigeria’s broadcasters played a more direct and meaningful role in developing the country’s broadcasting sector.
The six committees reflect the sector’s main priorities. The first focuses on collaboration and innovation to promote content creation.
The second is dedicated to training and talent development, while the third focuses on industry sustainability by improving the sector’s long-term financial viability.
A fourth committee will focus on digital transformation and work with the National Broadcasting Commission (NBC) on regulatory issues.
The remaining two committees will oversee public policy advocacy and the development of sports and commercial rights to help broadcasters increase revenue and attract more investment. Together, the committees are expected to guide BON’s efforts to modernize and strengthen Nigeria’s broadcasting industry.
The committees, chaired by members of BON’s General Assembly and supported by the organization’s Secretariat, have an initial 12-month mandate that may be renewed if necessary.
They are required to submit a progress report within three months and implement approved recommendations within the following six months.
The arrangement is intended to ensure close oversight and the timely implementation of their work.
Akiotu also reminded committee members that Nigeria pioneered television broadcasting in Africa and urged them to carry out their work with greater effectiveness and efficiency.
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