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Konga May Disrupt The Nigerian Stock Exchange By 2027

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Konga Online Shopping Limited, leading ecommerce giant could be preparing its runway for a listing on the Nigerian Stock Exchange (NSE) within the next 3 years, news sources gather.

Working with global investment advisory firms, the largest online shopping omnichannel platform in Nigeria could list its shares in an Initial Public Offering (IPO) as early as 2027, according to experts familiar with the matter.

Strong indications from the leadership of the company show that deliberations are in place and while the details on the timing of the launch could vary, the move to a publicly owned entity appears certain.

The new Konga which was founded in 2018 when Zinox group acquired it 100% from Africa’s largest tech global investors, Naspers and Europe Kennivik, has grown through the years to become a major ecommerce player with more than 700 full time staff and over 100,000 indirect employees in its portfolio. The acquisition by Zinox Group, a leading tech company, in 2018 was regarded as one of the biggest buyouts of a mainstream ecommerce organisation on the African continent at the time. The company has since positioned itself as a formidable force in the ICT sector.

Speaking with this reporter on the possibility of a public listing, Dr. Chris Uwaje, an expert with a deep understanding of the dynamics in global capital market as it relates to Tech Companies stated that “Konga is a company which must be watched closely as an organization with the potential to disrupt the Nigerian stock market in 2027 if it hits the NSE as companies like Amazon, Jumia struggle to survive in Africa because of infrastructural issues, and are discouraged from meeting their ambitions in Africa.

“As the global economic storm hits Africa, and Nigeria in particular, there are few companies which will emerge in the next 5 years and Konga will break barriers if they hit the stock exchange, because these guys strategies and tacts are auditable” he said.

With Jumia’s last quarter result showing reasonable stress and Amazon withdrawing its expansion strategy for Africa, the path for Konga is clear as the only ecommerce company that has everything within its business, from online marketplace, fintech, hospitality and travels as well as global brand partnerships, to own logistics nationwide. It will cost a fortune to build such a consolidated group in Africa powered by very expensive technologies and complicated analytics.

Konga, best known for its trusted delivery service, began exploring the possibility of an IPO in early 2021, however it still operates as a privately held entity with active institutional backing. The business is valued at over $3billion considering its direct partnership with major global brands Like  Apple, L’Oreal (No.1 Cosmetics company in the world), Starlink owned by Elon Musk’s Space X, Samsung, HP, Lenovo and others who host official stores on Konga.

“Having spent time discussing with investment consultants in Nigeria, I have come to the decision that Konga going on the Stock Exchange will be a win for the country’s business landscape. The organisation’s framework is right for the Nigerian Stock Exchange and the fact that it is committed to driving economic activity within the African subregion should be encouraged,” says Akintunde Badmus, an investment banker based in New York and Lagos.

In many global markets, companies like Konga acquire the services of a special purpose acquisition company (SPAC), through which it lists several businesses over three years. According to two people familiar with the deal, this could be a path the ecommerce service provider may take.

A SPAC deal for Konga will be a significant test of investor appetite for the Nigerian brand as the group undergoes various layers of restructuring to position its portfolio of companies as major stakeholders in corporate trade, fintech, hospitality and cosmetic distribution.

Despite facing global economic headwinds over the past year, Konga has experienced a notable boost in its financial metrics. The company benefits from the leadership of a team of young, yet seasoned professionals, including Prince Nnamdi Ekeh, an MBA graduate from Saïd Business School at Oxford University, known for their acumen and international business expertise.

The Nigerian Initial Public Offering sector worth an estimated N29trillion is gradually gaining momentum after months of market instability as major manufacturing organizations grapple with tough economic realities.

If Konga succeeds with its entry into the stock market, it will be the first locally owned majority stake ecommerce entity to achieve this feat. Other companies such as Jumia have listed on the New York Stock Exchange with its share value dwindling drastically at 10 percent of its original listing price.

Konga group may tell the true eCommerce story out of Africa if all goes well.


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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

NDPC Empowers Institute to Certify Data Protection Professionals

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Nigeria Data Protection Commission (NDPC) has said the certification of data protection professionals in the country will significantly reduce capital flight and create more than 500,000 jobs in the sector.

NDPC Empowers Institute to Certify Data Protection Professionals

L-r: Dr. Vincent Olatunji, executive commissioner, NDPC and Dr. Oyedokun Oyewole, president of the Institute of Information Management,

Dr. Vincent Olatunji, executive commissioner, NDPC, stated this at the presentation of the certificate of licence to the Institute of Information Management (IMF) in Abuja.

He said the certification of data protection professionals would not only enhance the protection of personal data, but also boost the country’s economic growth and development.

The projection comes as the commission intensifies efforts to promote data protection and privacy in Nigeria’s rapidly growing digital economy.

According to Dr. Olatunji, the move aims to enhance the capacity of organisations to protect personal data and promote compliance with Nigeria’s data protection regulations.

Establishing a local institution to train and certify Nigerians would significantly enhance local content in the sector, the NDPC boss hinted.

The commission, he assured his audience, was already exploring the possibility of implementing the licencing framework across Africa—a move that could potentially harmonise data protection standards and expertise across the continent.

Dr. Oyedokun Oyewole, president of the Institute of Information Management, said the licence would effectively address the existing gap in the data protection ecosystem, providing a much-needed solution.

Recalling that the certification process began in 2021, Dr. Oyewole reaffirmed the institute’s dedication to excellence, pledging to provide top-notch education in data protection and set a benchmark for the country’s education system in this field.

The IIM’s certification programmes will cover essential topics such as data protection principles, risk management, and compliance with the Nigeria Data Protection Regulation (NDPR).

The initiative is expected to boost the confidence of organisations and individuals in the country’s data protection landscape.

 

 


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CrediCorp Partners FintechNGR to Drive Consumer Credit Initiative

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Nigerian Consumer Credit Corporation (CrediCorp), has partnered Fintech Association of Nigeria (FinTechNGR) to drive consumer credit scheme initiative through a robust payment platform that would be provided by members of FinTechNGR.

Speaking at a Social Meet in Lagos, organised by FinTechNGR, with the theme: “Augmenting the Future, AI, Credit and Transformation of Nigerian Finance,” the Chairman, CrediCorp Board of Directors, Aderemi Abdul-Bojela, said members of FinTechNGR would have specific roles to play in the partnership, in the areas of providing robust platform for money transfer, technology evaluation, among others.

“Today, CrediCorp is engaging with members of FinTechNGR in a social interactive gathering to discuss collaboration and support for the growth of Consumer Credit Corporation in Nigeria. We want to interact to understand how technology will drive the crediCorp initiative in Nigeria and also to understand the role that members of FinTechNGR will play in all of these initiatives around CrediCorp,” Abdul-Bojela said.

Describing the partnership as a welcome development that will enhance savings culture among Nigerians, the Chief Operating Officer (COO) of FinTechNGR, Dr. Babatunde Obrimah, said: “FinTechNGR is an enabler of technology advancement in Nigeria. We bring the players together to drive technology innovation.

“Our role in the FinTechNGR-CrediCorp partnership is to ensure that our members support the growth of consumer credit in Nigeria, by providing the relevant payment platforms for all financial transactions among the banks who are the lenders, the customers who are the burrowers and the CrediCorp who is the guarantor.”

Speaking about the benefits for Nigerians, Obrimah said the Consumer Credit Corporation in Nigeria would enhance the country’s credit culture and enable Nigerians to save and plan well with their savings. “The initiative will address inflation, help in liquidity flow, build trust in customers’ borrowing, boost credit culture and enhance the culture of savings among Nigerians,” Obrimah said.

Addressing the issue of risk and consumer trust, Abdul-Bojela said the CrediCorp has put measures in place to ensure that the banks that would be involved in lending, would be protected and guaranteed of the repayment of the loans within the CrediCorp ecosystem.

He said there would be an independent management that would ensure that the right technology is put in place to recover all monies.


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NITDA to Integrate of Digital Literacy into School Curriculum

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Kashifu Abdullahi, director general of the National Information Technology Development Agency (NITDA), announced plans to integrate digital literacy into Nigeria’s education system, to achieve a 70% literacy rate by 2027 and 95% by 2030.

NITDA to Integrate of Digital Literacy into School Curriculum

Kashifu Abdullah, DG, NITDA

The NITDA’s DG made the announcement on Wednesday in Abuja during a media parley.

He stated that in order to include digital literacy in the curriculum at all educational levels, from kindergarten to university, the Agency was collaborating with the Federal Ministry of Education.

Abdullahi, said that this program would equip Nigerians with the digital know-how and abilities they need to succeed in the digital economy.

He emphasized that NITDA would also launch the “Digital Literacy for All Initiative” to educate Nigerians outside the formal education system and provide access to quality digital content.

Nigeria would train over two million young people in in-demand IT skills in order to become significant global outsourcing hub

NITDA is also collaborating with the Defence Headquarters and security agencies to develop digital solutions to address security concerns, including the use of drones, artificial intelligence, and other digital resources to combat banditry, abduction, and terrorism, he said.

 

According to him, the agency’s draft SRAP 2.0 plan aims to establish Nigeria as a digitally empowered nation, with a focus on innovation, national prosperity, and inclusivity.

The director general of NITDA added that, if successfully implemented, this strategy could propel Nigeria into a new phase of digital empowerment and leadership in the global digital economy.


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