nigeria startup ecosystem · cab finding app low-cost smartphones mobile learning media for the...
TRANSCRIPT
![Page 1: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/1.jpg)
Nigeriastartup ecosystem
Following Mobile West Africa conference in Lagos
May 2014
![Page 2: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/2.jpg)
Innovation has no place in a global world, it’s everywhere
Startup ecosystems can learn from one another
Local context matters and should be a source for innovators
This is why…
We’re on a world tour of startup ecosystems!
We believe…
![Page 3: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/3.jpg)
History & context of startups in Nigeria
“The India of Africa”
![Page 4: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/4.jpg)
An insulated country until very recently
• Until 1994 and the “new nation” in South Africa, all the continent was pretty much totally insulated
• Africa growth remained stagnant until 2000, with small figures for intra-Africa trade (only $11m traded between NG and SA in 1997)
• Nigeria is no exception: no MNCs had a HQ there, except churches!
![Page 5: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/5.jpg)
Nollywood and South African telcos started it all
• 1970-1980s: rise of Nollywood as the African scene for movie production. A Nollywood movie takes 10 days and $50k, 50 are produced every week, 1m people employed
• 1994: South African companies “take over” Nigerian economy, with telcos/TV (MTN, DSTV), supermarkets, construction works
![Page 6: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/6.jpg)
Social innovation is the key, more than technology
• No patents, broken education system, brain drain: Nigeria won’t generate breakthrough technologies
• Lots of issues (law, environment, violence) need local answers with a focus on usage and social innovation: breakthrough usages
• Wecyclers = environment + gamification + $$$
![Page 7: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/7.jpg)
Co-creation Hub as the step #1 of the tech scene
• 2011: launch of “CC Hub”, to “solve social issues with a business purpose”
• Settled in Yaba area, a student district in the center of Lagos
• Challenges: don’t ask for money too soon!
![Page 8: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/8.jpg)
Mobile West Africa to gather the tech community
• 2011: launch of Mobile West Africa, now the most proeminenttech conference in West Africa, 4th edition in 2014
• A conference + a Focus Day + A 1-day workshop
![Page 9: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/9.jpg)
Heading for half a billion Nigerian in 2050
• Nigeria is now 170m people, will be 440m people by 2050
• How to find 10m new jobs every YEAR
• A demographic dividend or a time-bomb?
![Page 10: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/10.jpg)
Solving the kleptocracy issue
• Africa’s biggest oil producer… but only about $30bn tax & royalties from oil each year (= size of higher education budget per year in France)
• Between 2004 and 2012, poverty rate went 52% to 61% of the population: 140m Nigerians live with less than $2/day
![Page 11: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/11.jpg)
Electricity and internet infrastructure not there yet
• Power cuts abound, and electricity is available on average 5h per day. Back-up gas generators can’t cope and pollute a lot
• Broadband penetration is 6-8%, with expensive data plans. Successful ventures can’t bet on a data-consuming population
![Page 12: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/12.jpg)
A nascent startup ecosystem for Nigeria
• Coworking spaces, investors and events pop-up in Lagos and a few other city (Abuja)
• Sub-Saharan Africa tops growth of tourism/travel
![Page 13: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/13.jpg)
Startups from Nigeria
• Two different segments for startups: tapping the happy few (Rocket Internet: Jumia, Jovago, Kaymu…), local tech startups (Hotels.ng, Konga…), solving social issues (Traffic Butter, Wecyclers, Budgit)
• No middle-class yet or expected for a bigger and more stable market
Cab finding app Low-cost smartphones Mobile learning Media for the youth
Find a medic Community-based traffic E-commerce Online Booking
![Page 14: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/14.jpg)
Nigeria startupscene today
Pros & Cons, Top Connectors & local best practices
![Page 15: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/15.jpg)
Pros and cons of Nigeriastartup ecosystem
• A huge market getting even bigger of 10m new people every single year. Half a billion in 2050. A billion in 2100
• A cultural epicenter for African youth through Nollywood movies and online publications
• A young and English-speaking population (at least in urban areas, e.g 1/4th population) which represent a pool of possible talent and market
• Safety issues remain a constant issue over the years, overpopulation can’t make them easier
• Broken governance, education, tax system, widespread corruption
• A country cut in two parts: Lagos/Port-Harcourt (English-speaking, with some wealth) and 140m people with <$2/day
• Infrastructure is a variable, with power cuts and small broadband penetration
• An oil-rich country not diversified at all: not so many opportunities for startups to disrupt anything
PROS CONS
![Page 16: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/16.jpg)
Top connectors in Nigeria
Matthew Dawes (LinkedIn), the UK born organizer of Mobile West Africa, Nigeria’s main tech conference
on mobile technologies, also organizer of tech events in Africa, part of UKTI Sub-Saharan task force
Femu Longe (LinkedIn), cofounder of CC Hub, Lagos’ first tech hub. A diasporan coming back from the UK,
strong believer in social business opportunities in Nigeria, tech activist
Yomi Adegboye (LinkedIn) aka Mr. Mobility, earlyfounder of a webhosting company in Nigeria, sincethen top blogger and speaker on mobile in Nigeria
Tomi Dee (Twitter), futurist techpreneur based in London and Nigeria, part of the angel investor
community in Lagos
![Page 17: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/17.jpg)
Top connectors in Nigeria
Tayo Ogundipe (LinkedIn), founder and CEO of Solo Phones, a venture making affordable smartphones
for the Nigerian market
Yemi Adamolekun (Twitter), executive director at Enough is Enough (EIE Nigeria), an activist group
mixing technology & politics
Neal Hansh (Twitter), CEO of MEST incubator innearby Ghana, living both in the corporate andstartup world, with connections in Silicon Valley andUK as well
Olufunbi Falayi (Twitter), founder of Passion Incubator, an early stage incubator, and a social
innovator in the field of education
![Page 18: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/18.jpg)
Best practices of Nigeria tech ecosystem
• Mobile West Africa organized as a participatory conference
• Tables have limited seating to foster interaction between participants
• All conferences and speeches include at least 20 minutes of Q&A + a MC to invite participants to discuss questions together
![Page 19: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/19.jpg)
Best practices of Nigeria tech ecosystem
• CC Hub User Experience Lab: The ground floor of the 5-story main tech building is dedicated to showcasing new phones
• Anyone can come and try everything to buy with better knowledge of the market• Brands also use the User Experience Lab for feedback sessions with users• It’s a clever and successful meeting point between end users, entrepreneurs and
the corporate world
![Page 20: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/20.jpg)
Best practices of Nigeria tech ecosystem
• Towards a cashless economy. Nigeria government tries to get everyone to pay online with a series of sub-projects:
• The new Nigeria ID Card is also a Mastercard• 10% penalty for merchants bringing back cash to the bank• Banks must deploy over 50k+ payment terminals to make it digital
![Page 21: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/21.jpg)
What’s next for Nigeria?
Solve the infrastructure issue: low broadband, power cuts can be constraints which make entrepreneurs creative but it impedes widespread use of technology
Increase help & support for social business: More than urban & consumer web startups, Nigeria needs social entrepreneurs who can solve issue in place of a broken government
Tap into Nigeria’s strengths: Demographic dividend + strong cultural production and influence should lead to projects and companies within the media field
![Page 22: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/22.jpg)
Mobile West Africa 2014
Key takeaways from the conference
![Page 23: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/23.jpg)
Key stats on mobile in Nigeria & Africa
• West Africa has 67% mobile penetration and 25% mobile internet penetration• 115m subscribers in Nigeria, 750m in Africa overall• About 8-10% smartphones in Africa, growing fast• 6-8% broadband penetration in Nigeria
![Page 24: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/24.jpg)
Mobile marketing 101: Objectives & means
• Gamification? Go for an app• Online/Offline interaction? Go for QR codes• B2C interactions & push? Go for SMS• Brand awareness? Go for mobile ads• Full control on content & conversions? Go for a mobile website
![Page 25: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/25.jpg)
Mobile marketing 101: Principles & KPIs
• Immediacy: always on with us• Mobility: always in our hands• Interactivity: through live data
APPS
Social currency
Functionality
Engagement rates
ADS
Reach
CTR
CPA
SMS Marketing
Relationships built
Database growth
Reply ratio
QR Codes
Visit duration
Conversion
Database growth
![Page 26: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/26.jpg)
Mobile marketing case studies from MWA speakers
Knorr South Africa (Prizes & Airtime for polls)
Carling Black Label (prizes for SMS engagement)
OMO South Africa (opt-in SMS for purchase reminders)
MyNeta.info India: transparency by SMS
![Page 27: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/27.jpg)
2go, Eskimi: where Nigerians hang out online
• 2go: 10m monthly active users in Nigeria
• Eskimi: 8.8m monthly active users in Nigeria
• Lightweight all-in-one applications (chat, job search, music, news)
![Page 28: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/28.jpg)
Solo Phone, a smartphone by Africans for Africans
• Commercial launch in Nov. 2013 with $80 and $150 models
• A network of wifi hotspot to avoid expensive data costs for users
• Music for free, video on demand as a source of revenue
• For $1, one movie, downloaded in 30 seconds
![Page 29: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/29.jpg)
Rocket Internet in Nigeria: a big lead within higher-income population
• Nigeria: 170m people, 2.4m mobile phone payments, +9.3% internet payments• Jumia: Amazon-like, 200 vehicles for delivery, 600 employees, 70% market share of
e-shopping• Kaymu: eBay-like, new features for fastest mobile upload of products• Jovago: Bookings-like, tapping 12% growth in Sub-Saharan Africa tourism
![Page 30: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/30.jpg)
The future of mobile by Tomi Ahonen
• Still a lot of opportunities in mobile: healthcare, education, F&B, banking…
• Behavior on mobile and tablet are completely different• Moore law for smartphone prices: they would cost $10 in 2019• After mobile, augmented reality will be the next big disruptive mass
media
![Page 31: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/31.jpg)
The power of voice-based apps in Africa
• VOTO Mobile (Ghana): polling and communication with rural population, often illiterate, through voice calls & apps
• Sterio.me (pan-African): pre-recorded lessons from teachers and homework by students through voice
![Page 32: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/32.jpg)
Eager to learn about the other innovation ecosystems?
![Page 33: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/33.jpg)
Documenting innovation through key events Hot posts, interviews, live-tweet, Google Hangouts
Identifying key connectors on & offline
Discovering alternative and emerging innovation ecosystemsBeyond the Silicon Valley, local innovation hotbeds
Tech, Social impact, Education, Life Sciences…
Increasing mobility of innovators and ecosystem enablersConnecting doers and thinkers through monthly Hangouts
Offering innovation ecosystem enablers to learn and exchange from peers
About our project A world tour of innovation ecosystems
![Page 34: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/34.jpg)
Martin Pasquier
Entrepreneur in Singapore (social
media agency), long-time traveller
Mixes economics, politics and travels to analyze ecosystems,
reports on innovation
About our teamAnalysis, community & network
Anne Lalou
CEO of Innovation Factory & Web School
Factory in ParisTransfer knowledge of
ecosystems to new generation and to a
network of top French companies
Nicolas Loubet
Serial entrepreneurin Paris
with 3 companies, growth hackerManages and
nurtures creative communities on & offline
![Page 35: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/35.jpg)
A world tour of innovation: 2013-2014
SUPPORT US! Travel & time of exploration isn’t free Custom reports on emerging markets & trendsWorkshops, talks on innovation trends Connection to key local players for VCs, brands, tech communities
![Page 36: Nigeria startup ecosystem · Cab finding app Low-cost smartphones Mobile learning Media for the youth Find a medic Community-based traffic E-commerce Online Booking. Nigeria ... which](https://reader034.vdocument.in/reader034/viewer/2022050222/5f6751b8b4ea8e547468f99e/html5/thumbnails/36.jpg)
• Meet The Entrepreneurs Behind Nigeria's Startup Revolution (Fast CoExist)
• Nationwide Cash-less Policy: Is Nigeria Ready? (Ventures Africa)
• E-commerce in Nigeria: how Rocket Internet’s Jumia, Kaymuand Jovago are taking over Africa’s biggest market (Innovation is Everywhere)
• An investor’s comparison between West & East Africa’s tech startup ecosystems (VC4Africa)
• Mobile West Africa 2014: wrap-up of Nigeria’s largest tech conference (Innovation is Everywhere)
• PEDAL TO THE METAL – SEVEN TECH STARTUP ACCELERATORS IN NIGERIA (TechCabal)
More on Nigeria startup & innovation scenesResources