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E-Business

Konga and the $10Bn Target by 2026

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By Dr. Aje Boluwatife.

The Nigerian e-Commerce sector is a much-touted lucre that has attracted a number of players.

The growing interest is buoyed by the rise in a youthful population, growing smartphone and internet penetration, the aspirational mind-set of the average Nigerian and expanding consumer power. At present, e-Commerce spending in Nigeria is on the rise. Research estimates indicate that current spend on e-Commerce is at $12 billion, with the figure expected to rise higher and even projected to reach $75 billion in revenues per annum by 2025.

Despite the allure, the reality of cracking e-Commerce in Nigeria and in Africa, by extension, remains a task far removed from the exertions of the faint-hearted.

Indeed, making a success of e-Commerce, as the experience of many players who stumbled in Africa’s biggest market has shown, demands not only deep pockets but also a huge dose of street-smartness, a keen understanding of the Nigerian market, a determination to stick to ethics and play by the rules, as well as sheer bloody-mindedness in overcoming many of the frustrating infrastructural and institutional encumbrances that have hobbled many in this industry.

Till date, the strides of Konga remain a template for many to follow.

In tracking the current laudable strides of this e-Commerce behemoth, it is imperative to recognize and appreciate the efforts of many players who have toiled but found the Nigerian e-Commerce market too high a mountain to climb. The likes of Jiji, OLX, DealDey and Efritin, among many others, have a tale or two to tell about the hard nut that e-Commerce in Nigeria represents.

Though it also has a thing or two to share about the pitfalls of playing in a difficult terrain such as Nigeria, Konga has transformed itself, under the management of its new owners – the Zinox Group – into a much sought-after entity, the beautiful bride of potential e-Commerce investors and global stock markets. Recently, Konga was reported to have fielded interest from the New York Stock Exchange as well as the London Stock Exchange over a purported listing, as interest swirled in the company from near and far. Also, feelers in the industry indicate that many are looking to buy into the business and if Konga were to list its shares today, it would probably not only get oversubscribed but also result in a unicorn valuation.

The submission of a recent panel of experts on the Konga brand is worth recalling here, with Prof. BoubaYankubah, one of the panellists, painting a picture of a thriving e-Commerce brand during the session which held in Accra, Ghana.

Prof. Yankubah was quoted as saying: ‘‘It is strange that not much has been said of how much impact Konga has had in the Nigerian, nay African e-Commerce ecosystem. But lest we forget, that is the brand that pioneered the marketplace structure in Africa which was widely replicated by other brands, not only in Africa but also by the likes of Amazon as well.

‘‘The…case of Konga as the jewel in the crown of African e-Commerce is further justified by its thriving business entities which include a licensed mobile bank, online travel agency, its omni-channel strategy, the ease with which it has resolved the thorny challenge of logistics as well as its hard-earned status as a trustworthy brand.

‘‘It is interesting that, despite the huge investment by its new owners, which from reports in the Nigerian media, are highly credible and experienced entrepreneurs, the brand is yet to follow through on rumoured intentions to list on the international stock market. If and when this happens, Konga’s valuation may exceed well over $2.5bn and we may see the emergence of a true African unicorn.

‘‘But I wish to urge the owners of Konga not to be tempted by greed and to stay true to their strategies and long-term vision for the business,’’ he had stated.

In my line of work as an analyst covering the African e-Commerce market, I have seen many promising e-Commerce start-ups flatter to deceive. Konga has stayed the course and currently enjoys the confidence of a growing number of Nigerians as the biggest player in the market.

But what is Konga doing right?

First, the management of Konga has demonstrated an extensive understanding of the market – an advantage that continues to help it navigate policy somersaults and other risks associated with the peculiar Nigerian market. This is mainly due to the experience of the current owners of Konga who are widely reported to be credible Nigerians who have been in business for over 30 successful years. Today, Konga is better equipped, more than any other e-Commerce player to take on and successfully deliver large projects or find a solution to the most difficult infrastructural challenge in Nigeria. Even if Amazon or Alibaba were to expand their operations to Nigeria, they would struggle to beat Konga and may have to settle for a partnership with them.

Two, Konga has strategically invested in building a world-class infrastructure from the ground up which has equally elevated its many offerings. In the area of technology, Konga boasts perhaps one of the most advanced technology suites in Nigeria, ranging from the multiplicity of apps driving its day-to-day operations and a reported robotics-enabled multiple warehouse deployments. Closely aligned to this is its investment in massive regional warehouses – a project that has conveniently positioned it to retain huge inventory, significantly boosted its carrying capacity, as well as its orders fulfilment capabilities.

In addition, one of the major advantages that Konga holds in its war chest is the fact that it has seemingly resolved the challenge of logistics – one of the biggest obstacles and pain-points of e-Commerce, not only in Nigeria, but in Africa, as well. Konga, I understand, has its own internally owned logistics company which, from reports in the media, has the capacity to handle deliveries to the last mile for Konga as well as for external parties. Kxpress, as the company is known, is said to have in its arsenal a growing fleet of trucks, buses, motorcycles and other vehicles which it puts to use in serving the market and navigating the traffic-challenged nooks and crannies of the major cities and hinterlands in Nigeria.

Furthermore, there is a sense that, with Konga, ethics can never be sacrificed on the altar of selfish gains. The travails of another well-known player in the industry further justifies the Konga hallmark of ethical rectitude. There is no place for cooking the books or falsifying figures to paint a deceptive picture to customers or potential investors. This is a quality that has put the business on a sound footing, especially in its dealings with all of its stakeholders.

Worth mentioning as well is the fact that Konga has remained an example of reliability and responsive customer experience. From the personal experiences of myself, professional colleagues, other industry acquaintances as well as the majority of opinions sampled, Konga stands heads and shoulders above its peers in terms of its approach to meeting the expectations of customers. There is zero tolerance for fake or substandard items on its platforms, with the company holding high its promise of making available only genuine products which it sources directly from manufacturers. Merchants who trade on its platform, by extension, also key into this tradition. Defaulters are blacklisted while issues are handled swiftly by an internal unit which has a deadline for resolutions.

Aligned with KongaPay, a Central Bank of Nigeria-licensed mobile money platform, a growing chain of brick-and-mortar stores dotting Nigeria’s landscape and accounting for the many who still wish to experience e-Commerce the traditional way; as well as a number of thriving entities under the Konga stable, there is no looking back for this powerful retail giant.

It is only a matter of time before the management of Konga caves into the huge pressure of hitting the global stock market.

The world awaits with bated breath…

 

Dr. Aje Boluwatife is a visiting research scholar from the United States

 

 

 


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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

E-Business

INEC Sets Up AI Division to Strengthen Electoral System

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Independent National Electoral Commission (INEC) has announced the establishment of an Artificial Intelligence (AI) Division within its ICT Department.

INEC Sets Up AI Division to Strengthen Electoral System

This marks a significant stride toward enhancing electoral integrity, efficiency, and innovation in Nigeria’s democratic process.

This decision was reached at the Commission’s regular weekly meeting held in Abuja, following a series of consultations and engagements on the global and continental impact of AI on elections.

In a statement issued by Sam Olumekun, national commissioner and chairman of the Information and Voter Education Committee, INEC underscored that the growing relevance of AI in electoral matters necessitated a proactive institutional framework to manage both the risks and opportunities it presents.

“Our interactions with electoral bodies across Africa highlighted both the risks of AI—such as fake news and content manipulation—and the vast potential it holds for data-driven decision-making, risk mitigation, automated voter services, and geo-spatial intelligence for logistics,” Olumekun noted.

According to him, the newly created division will centralise the Commission’s AI efforts, ensuring a harmonized approach to deploying intelligent systems that enhance decision-making, improve voter engagement, and boost the credibility of the electoral process.

“The creation of this division puts the Commission at the forefront of institutionalizing AI capabilities in electoral management.

It is also part of our ongoing reforms in areas where administrative action is sufficient to drive change,” he said.

He added that the AI Division will help INEC better coordinate its existing technological investments while providing safeguards against the misuse of AI technologies.

“We are positioning ourselves to maximise the positive impact of AI while mitigating its negative implications. This step strengthens the credibility and transparency of elections in Nigeria,” Olumekun concluded.

The initiative, INEC emphasised, reflects its commitment to embracing innovation in safeguarding democracy and improving electoral services nationwide.

 

 

 

 


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E-Business

CAC, NIBSS Unveil Platform for Data Access to Private Firms

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Corporate Affairs Commission (CAC) in partnership with the Nigeria Inter-Bank Settlement System (NIBSS) has unveiled a new Application Programming Interface (API) integration system to allow private firms access company data from the Commission’s database.

CAC, NIBSS Unveil Platform for Data Access to Private Firms

Hussaini Ishaq Magaji (SAN), registrar general of CAC, who spoke  in Abuja at the unveiling said the system would give selected private organizations access to CAC services through technology-based companies, called “super agents.”

“This is a practical step to show that the Commission is committed to meeting the expectations of our customers,” he said.

Magaji explained that the integration allows the agents to retrieve data from the CAC database for use in specific client requests, outside the standard services provided by the Commission.

“Before now, only a few government agencies had this integration, especially those involved in investigations, anti-money laundering, and terrorism financing. Now, private companies that meet the criteria can also access it,” he said.

He said the system complies with the Nigerian Data Protection Act 2023, and information such as residential addresses, phone numbers, and dates of birth may be restricted.

“This is a call to law firms and companies with the right technology. We’ve started with NIPS because of their credibility. Embassies and banks can now authenticate company records directly through them.”

“There are prescribed fees. We already collect them on our portal, and now customers can also pay through these agents,” he explained.

He named NIPS, MoneyPoint, and OPE as some of the companies involved.

“OPE and MoneyPoint handle only registrations. But NIPS has moved further into validation and verification,” he said.

Ngover Ihyembe-Nwankwo, executive director at NIBSS, who represented Premier Oiwoh, managing director, said the service allows secure and efficient data verification.

“This is the result of years of effort to connect our systems with CAC. It will help users verify data within the limits of data protection laws,” she said.

She said the move is a way to lower costs and promote interoperability across the financial sector.

 

 


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FG Launches Online Citizenship, Business Management Platform

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Ministry of Interior has announced the launch of a new Online Citizenship and Business Management Platform in line with the Renewed Hope Agenda of President Bola Tinubu.

FG Launches Online Citizenship, Business Management Platform

A statement signed by Dr Magdalene Ajani, permanent secretary, Ministry of Interior’s said the initiative forms a key part of its ongoing reforms aimed at promoting transparency, enhancing operational efficiency, and significantly improving service delivery to the public.

The new digital platform is designed to streamline the application and processing of citizenship and business-related services, ensuring faster turnaround times and improved user experience.

The platform allows users to apply for and manage business permits, ensuring that both local and foreign businesses operate legally in Nigeria.

It includes an Expatriate Quota System to manage work permits for foreign employees, helping companies hire skilled workers while complying with Nigeria’s immigration laws.

The Citizenship Administration and Management System provides a streamlined online process for applying, tracking, and managing Nigerian citizenship applications and related services.

Members of the public, corporate entities, and other stakeholders are expected to access the platform through the ministry’s website: https://interior.gov.ng , Direct Portal Access: https://candb.interior.gov.ng , or contact candb-support@interior.gov.ng for support and inquiries.

“The Ministry of Interior remains committed to establishing a more efficient, transparent, and secure framework for citizenship administration, while continuously enhancing service delivery through digital transformation,” the statement read in part.

 

 

 

 

 

 


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