startup west africa report - nigeria
TRANSCRIPT
Why Nigeria?
“Nigeria has the largest economy in Africa and is the world’s 26th largest economy, bigger than Egypt, Angola, Kenya, Croatia and Lebanon combined, and 12 times the Ghanaian economy.”
Seye Akinnaike (2014)
Nigeria at a Glance
7th most populous nation in the world with 170 + million people
World Bank (2013)
83 million + internet usersAmong the top three emerging broadband
marketsITV News (2015)
Between 2000 and 2014 the middle class grew by 600%
Standard Bank (2014)
Lack of effective communication1%
Lack of access to the internet3%
Lack of support12%
Lack of funds / capital17%
Lack of necessary skills12%Lack of knowledge
10%Inadequate institutions
5%
Poor internet services6%
Expensive to access the in-ternet
4%
Lack of constant electricity
8%
Lack of enabling en-vironment
6%Lack of adoption of locally invented goods/services
2%
Resistance to change2%
Limited incubation programs
1%
Corruption1%
Insecurity3%
Lack of employees with the right skill5%
Poor infrastructure1%
Poor Regulations1%
Local Budding Entrepreneurs – Challenges
163 respondents across Lagos (UniLag) and Ogun State (Covenant University)
Challenges faced by Start-ups
“People don't know how
powerful their smart phones are”
“Expensive to access the internet”
“Electricity challenges make it more expensive to run a start-up”
“Slow internet connection”
Hugo ObiCo-Founder of MALIYO
andFounder of Save & Buy
Local Budding Entrepreneurs Findings
48% stated that the number of people with the right skills to help start-up
thrive are not available
96% stated that access to capital/finance is difficult
50% stated that registering a business in Nigeria is complicated
74% stated that most Nigerians are entrepreneurial
86% stated that Nigeria lacks adequate infrastructure to help start-ups and
foster growth
163 respondents across Lagos (UniLag) and Ogun State (Covenant University)
80% stated that the right regulations are not in place to allow start-ups thrive
Regulations
“Laws put in place to curb fraud could hamper monetisation for start-ups”.
“No special laws to incentivise Entrepreneurs”
“e.g. Start-up are not allowed to collect/store credit card details. This means start-up cannot do subscription-based services, which are more frictionless methods and well used in developed countries.” Eric Osiakwan
Eric OsiakwanTech Entrepreneur &
InvestorMichael Ugwu
Founder of Freeme Digital
“There are tons of challenges, however its very rewarding when you get it right…”
Raphael Afaedorco-Founder & CEO - Supermart.ngex-MD and Co-Founder of JUMIA
The Ecosystem
98% are religious
87% are proud of their culture
95% are social who enjoy networking and meeting new people
97% stated that family means a lot to them
75% are motivated by money and have a drive to succeed
97% stated that their appearance means a lot to them
95% have a long-term vision and know where they want to be in 5 to 10 years
Local Culture
163 respondents across Lagos (UniLag) and Ogun State (Covenant University)
Local Culture
“People don't want discounts. Word of mouth is the most powerful marketing technique”
Oluseye Soyode-JohnsonLead Partner, The African Technology Foundation
Web Culture
Online engagement prevalent among political
youth
Online support for Muhammad Buhari election campaign shows that the Nigerian youths are using social media to champion
political causes…
#NigeriaDecides
Opportunities
40% + of the Nigerian population is under 15 years
Housing
Education
Health
Agriculture
“The next big thing in Nigeria will be customer facing technology”
Oluseye Soyode-Johnson
Services
Predicted to be in the Top 20 Economies By 2030
Source: World bank (2014)
Africa’s Largest Economy with GDP standing at $521.8 billion
Infrastructure
Examples
Opportunities – Tech Space
Digital Banking / ePayments
e-Commerce will continue to grow
Educational Services
Arnold EkpeFormer CEO of Ecobank
"If I was 30 years younger I would set-up a digital bank"
Digital Marketing
Data Analytics
Examples
Advice
Know the industry, policies and the marketBuild your network
If you chase money, it will run away from you, but if you do something you are passionate about, the money will automatically
follow
Think Big, Start Small, Move Fast
Tola James-OdukoyaFounder, Nari Juice
Co-Founder, [email protected]@tolajamesodukoya
Seye AkinnaikeFounder, StartUpWestAfrica
Co-Founder, [email protected]
@seyeakinn
Alieu FofanahFounder, GoGetters
[email protected]@alieufofanah
ContributorsAuthor