Detailed analysis of the E-commerce sector in Nigeria; market profitability, market opportunities, consumer trends, an analysis of top market leaders, and finally some recommendation on starting a profitable e-commerce business in Nigeria.
There are over 25 e-commerce stores in Nigeria with market size of $17 billion. E-commerce in Nigeria is one of the fastest growing markets in the world with over 255 billion in revenue annually and a rapid growth rate of 25 percent. The industry makes it possible to engage in transactions from different parts of the world giving access to the product from the different market in different places. Also, it is a commercial activity dealing directly with the trading of goods and services and with other related business activities in which the electronic medium plays a crucial role. In addition, e-commerce grows at 25.8 percent in Africa with Nigeria being the fastest growing market in the continent compared to the 16.8 percent in the rest of the world. The e-commerce will continue to grow bigger with about 60 millions of Nigerians now enjoy access to the internet with the population dominated by youthful population. In accessing the opportunities, the rapid growth rate of mobile telecommunications of more than 170 million people, over 300,000 online orders are made every 24 hours.
One of the major if not the major constraint faced by online shopping markets in Nigeria is the increase in fraudulent activities online commonly known as cybercrime. Cybercrime is defined as any criminal activity done through the internet with the intent of defrauding people of their belongings. People have been defrauded of their e-wallets, hijacking phone numbers and use it to offer services illegally among others.
Looking at the competitive landscape, online shopping has to compete with local stores for the prices of goods and services and since most of the online stores often generate profits from delivery costs, in a situation where both offer the same prices there will be no use engaging e-trade.
It will be however recommended that industry should ensure and regulate that all firms should embark on PoD (Pay on Delivery) due to its impact on the number of online shoppers. It was discovered from a study that the majority of users are shopping due to the PoD practice.
In addition, the e-commerce industry should ensure a user-friendly interface while making orders and also a hitch-free delivery to harness consumers’ loyalty and trust.
INDUSTRY AND MARKET DYNAMICS
This involves how a market changes over time to interaction between the supply and demand of online shopping within the e-commerce sector, market or market segment.
E-commerce industry as already identified with a rapid growth rate and a growing market size of $17 billion in 2019 which also indicate a gradual adoption of the online marketplace by consumers. Consequently, Nigeria remains Africa’s largest mobile market with about 162 million subscribers in the continent and a penetration rate of 84 percent. According to the recent report by the National Bureau of Statistics (NBS), it was estimated that the e-commerce sector is expected to contribute about 10 percent (10 trillion naira) to the nation’s Gross Domestic Product (GDP) by 2018. Currently, the population of users is 67,101,452 with the penetration rate of 37.59 percent and GDP per capita of $5.911.
E-commerce is a fast-growing with an annual increase and opportunities to further increase as the rate of internet users increases. Of the identified market drivers includes:
- Third-party logistics
In any organization or industry, the effect of exceptional logistics can never be over-emphasized. Logistics plays a vital role in the creation of visibility in the e-commerce supply chain and determines the overall satisfaction of the customers, efficiency and service delivery. However, it is noteworthy that it requires a lot of expertise and a complex network of several small systems.
- The explosion in mobile internet penetration
As earlier mentioned, the adoption of the latest mobile technologies is playing a big role in the growth of e-commerce. When shopping, the structure must customers friendly and ease of use leading to the growth of the industry.
- Growth of big data
With the increased need to take up emerging challenges, big data analytics has helped to deliver more solutions for which the online shopping platforms are no exemption. Of the major drivers of the industry is the growth of big data which has helped delivered quality solutions in analyzing the target market, delivery solutions exceeding customer’s expectations. Big data analytics help to track the consumer’s online behavior and help consumers determine the needs, tastes and preference of the customers.
- Increased range of payments for unbanked shoppers
There has been high growth of online wallets and cryptocurrencies and other digital currencies that are making it possible to trade without worrying about the exchange rates and country-specific financial issues. The wide spectrum of options has made it easier for people to buy online.
- Payment on Delivery (PoD)
This has been at the forefront of the conversation around why buying and selling online in Nigeria is adopted. According to reports, it shows that a 300 percent increase in orders is a result of PoD. Thus, ensures the consumer’s trust and loyalty of the business. With online voting conducted by Jumia Nigeria, asking the best payment options, more than 67percentt chose to pay on delivery option.
The e-commerce industry in Nigeria is highly connected with the numbers of internet users via mobile phones and other platforms. With the 180 million citizens in Nigeria, more than 60percentt are youthful population owing to the fact that the youth are the most users of online shopping. The industry has had a tremendous impact on business transactions and influenced the economy greatly. With an improved trade activity providing a cost-effective method of connecting producers and merchants directly to customers, e-commerce market thrives. Consequently, the current market size according to a report by the Economist Intelligence Unit, London is around $13 million with an annual growth rate of 25percentt. Also, industry experts reported an estimate of the market size to rise to $50 billion in 10 years.
Majority of internet users are shoppers owning to the report of the National Communication Commission (NCC) that the mobile network coverage is currently estimated at 77percentt. In Nigeria, 89percent of internet users online shoppers while 24percentt are expected to do so in the future.
Some of the identified constraints that the industry might possibly face are as follows:
- Lack of trust: the online shopping platforms had suffered from consumer’s lack of trust coupled with the internet accessibility challenges.
- Cyber crimes: this is one of the major if not the major constraint faced by online shopping markets in Nigeria. This is a result of the increase in fraudulent activities online. Cybercrime is defined as any criminal activity done through the internet with the intent of defrauding people of their belongings. People have been defrauded of their e-wallets, hijacking phone numbers and use it to offer services illegally among others.
- Lack of acceptance: some online stores do not accept or allow transactions from Nigeria based on the antecedents of fraudulent practices creating a bad impression in the mind of customers and the prospective ones.
- Competition: online shopping have to compete with local stores for the prices of goods and services and since most of the online stores often generate profits from delivery costs, in a situation where both offer the same prices there will be no use engaging e-trade.
E-commerce in Nigeria and its potential is a vibrant source of economic growth and development expected to add about 10percentt to the nation’s GDP. Also, it impacts in the Micro, Small and Medium scale enterprises (MSMEs) towards job creation and wealth management can never be over-emphasized. With the increased growth, goods sold and delivered at affordable and competitive prices and sometimes cheaper than offline prices.
The e-commerce will continue to grow bigger with about 60 millions of Nigerians now enjoy access to the internet with a total population dominated by youthful population. In accessing the opportunities, the rapid growth rate of mobile telecommunications of more than 170 million people, there are over 300,000 online orders are made every 24 hours. Others are the ability to reach out to millions of people in different places at a point in time, a huge contribution to the economy, and an unfolding impacts in the consumption patterns in the economy.
AI Expo Africa 2021: Demand surges for 4IR tech as 4,600 register for Africa’s largest AI trade event
AI Expo Africa – the continent’s largest annual gathering of buyers and suppliers of Artificial Intelligence (AI), Robotic Process Automation (RPA) and Fourth Industrial Revolution (4IR) smart technologies – is set to have its biggest edition this year as 4 600 delegates and several international and local sponsors have already registered to attend the trade show and conference which takes place between 7 to 9 September.
AI Expo Africa 2021 ONLINE will mark the fourth edition of the annual trade event. Dr Nick Bradshaw, AI Media Group CEO and AI Expo Africa founder, pointed out that this year’s event will – like last year’s edition – also be held online to circumvent COVID-19 event restrictions. “Based on the early interest in AI Expo Africa 2021 ONLINE, we know our community likes the event’s online format and mix of content, vendors and innovators. AI Expo Africa 2020 ONLINE attracted more than 2 400 registered delegates and hosted 80 speakers and 80 exhibitors. This year we are on track to set a new benchmark as the audience grows.”
Head of Show Production Daniel Mpala stated that AI Expo Africa 2021 ONLINE is on track to host the largest mix of global vendors and cutting-edge startups for its curated audience of business practitioners. “Our event has now grown in the last three editions, starting this year, we will be dedicating Day 1 of the event to showcasing our vendors. AI Expo Africa 2021 ONLINE will again feature our specialist eZones, labs, poster wall and several country ePavilions from vendors outside the Africa region making for a truly global 4IR technology festival we think our community will really enjoy.”
Early sponsors that have signed up include US-based Future Tech, Czech-based IBA Group, UK-based Elzware, as well as South African firms Aizatron, COGO People Analytics, CompariSure, ecosystem.Ai, WizzPass, and Amathuba AI.
Premier diamond sponsor Future Tech, an Accubis company which specialises in Blockchain, AI, RPA and Digital Transformation, said it is excited to be part of this year’s edition of the expo. “We already have a range of projects underway in the Africa region and are actively looking for startups to invest in with funding partners wanting to co-invest. Africa is seeing a surge in uptake of these 4IR technologies and we see community engagement via this event a key part of our strategy for the the region in 2021,” explained Future Tech co-founder and Blockchain / AI Practice Manager Daniel Sloan.
COGO People Analytics managing partner Elmen Lamprecht commented that the COVID-19 pandemic has shown that it cannot be “business as usual”. “The world of work has changed irrevocably and People Analytics will play a huge role in the workplace going forward. We are excited to be part of the Africa’s leading AI event and to showcase how we can help organisations adapt to the new world of work by harnessing the capabilities of AI in their HR departments,” added Lamprecht.
ecosystem.AI commented that it had found new ways for businesses to understand and interact with their customers. “Through the use of of machine learning and behavioural predictions, we give businesses the tools to better engage with their customers in real-time. Exploring and understanding the behaviour behind the choices that their customers make,” the company added.
Ulrich Stark, the co-founder and executive director of WizzPass — which supplies highly configurable visitor & contractor management, employee desk booking, office capacity management, employee parcel management and Covid-19 screening services — commented, “As a returning supporter of AI Expo Africa 2021, this event is a great way to reach new business customers and we look forward to meeting the delegates and partners in September for a truly amazing experience.”
Aizatron said it looks forward to demonstrating its latest smart IoT and edge solutions. “We will be showcasing our latest computer vision technology, smart agri-tech, and intelligent safety and security systems. We will also demonstrate how we have coupled AI with RPA technology to create smart self-healing operations, that react quickly to alerts and deal with them quickly and effectively improving SLAs and reducing business outage due to system failures. Large companies attending the expo will also be shown how they can easily access our technology through our secure APIs”.
Amathuba AI Chief Commercial Official Nomsa Nteleko said the firm’s vision is to advance African culture and humanity through the assimilation of Artificial Intelligence technology. ” We hope to achieve this by changing the African narrative through our progressive technology. We believe AI can be a collaborative partner to humans. Our solutions include; Medical, Healthcare, Manufacturing, Auditing, Data Enhancement & Cyber Risk. There has never been a better time to embrace the 4IR technology opportunity and as a returning supporter of AI Expo Africa we look forward to meeting new clients and partners at the show,” she added.
Matt Kloos, CFO at South Africa based CompariSure, stated, “At CompariSure, we aim to connect consumers with premium product providers, while using our proprietary chatbot technology to build the “automated insurance agent” of tomorrow. We see AI Expo Africa as a great way to reach new business customers and showcase our conversational technology to new users who are perhaps considering this kind of technology for the first time. We are really happy to be joining over 4 000+ delegates who are keen to see what Africa has to offer in this rapidly growing segment of the market”.
IBA South Africa managing director Dimitri Denissiouk said the company is excited to be involved in the high-profile event, and about what it can bring to African businesses in terms of automation and digital transformation. ” Intelligent automation has been the company’s focus since 2013. The IBA Group’s Center of Excellence has implemented 500+ RPA solutions and our developers have been working for years with a variety of RPA platforms, including WorkFusion, UIPath, Automation Anywhere, and Blue Prism. Based on this expertise, we built our EasyRPA platform. We look forward to seeing you at AI Expo Africa and invite you to attend our presentation on EasyRPA,” said Denissiouk.
Elzware founder and managing director Phil D Hall said he was excited to have engaged with AI Expo 2021 ONLINE. “We are looking forward to the event where we will be bringing our long experience in conversational AI into the sight of the leading hearts and minds in the African AI ecosystem,” he added.
AI Expo Africa 2021 ONLINE delegates can expect to hear from 80 thought leaders in AI, Data Science and Robotic Process Automation on the 8th and 9th of September. In addition, delegates will this year be treated to unique online experiences that will form part of the social programme on Day 2 and Day 3 of the expo. Like last year, the 2021 edition will also include a 30-day OnDemand Show archive which will be accessible from the 10th of September.
Bradshaw concluded, “We are going to market with a tried and tested format that will negate all the problems the world is experiencing because of the pandemic, while at the same time broadens the buyer audience and makes the event more accessible and diverse as our reach is essentially global and the tickets are free. We again hope to deliver on our promise of curating the best business trade event go its kind on the continent and look forward to showcasing the best of Africa 4IR innovation.”
Those interested in attending AI Expo Africa 2021 can register to claim free tickets here.
Swvl ex-founder launches Telda, Egypt’s First of its kind Money App
Telda ATM Card (Source: Ahmed Sabbah)
Swvl co-founder and former CTO; Ahmed Sabbah and Youssef Sholqamy; former Uber engineer alongside a Silicon Valley team from Facebook, Uber, Amazon and Noon are building this next generation payment app “Telda” known as “The Money App”.
Telda is the easiest and fastest way to send, spend and save money. It’s the first digital banking experience app in Egypt moving it one giant step closer to achieving the vision of digital transformation in the economy offering various features to ease the daily payment pains.
The Fintech company is officially launching in Egypt providing locals with a digital banking experience platform enabling customers to create a free account by only using their phone numbers and national IDs. By signing-up; they receive a free Mastercard to their door steps with zero hassle. They can use it everywhere for online payments, in-store purchases and cash withdrawals from any ATM worldwide.
Through Telda, sending money to family and friends is as easy as sending a whatsapp message. By syncing their contact list; users will be able to send & request money instantly. They will also be able to control their spending with the most iconic money management features helping them to stay on top of their finances with simplicity and ease.
The new social money app gives its users all the insights about their spending habits to better manage their expenses. The app displays all users’ transactions and divides them into smart sub-categories making saving easier than ever. Telda tackles all the daily payment pains; from splitting cheques, trips, birthday gift shares to paying bills, topping up phone credits and using the telda card for all online and in-store payments.
As Egypt is approaching a digital transformation in the economy focusing on the adoption of technology and the need for tech-savvy solutions, Telda is aiming to make life easier and quicker for consumers to open an account, make instant payments and real-time transfers from the comfort of their homes.
Download App from App Store and Google Play or click to visit their website Telda app
Binance Smart Chain (BSC) to be launched on Vertex P2P Market
Binance Smart Chain (BSC) will be launched on Vertex, the first and only p2p platform to implement the fastest growing blockchain.
“The most important thing for users to note is that BTCB and USDT issued on Binance Smart Chain will be available for exchange on the Vertex peer-to-peer market. An added advantage for traders on our platform is that they can boost profits due to the lower fees.” – Alessandro Pecorelli, CTO of Vertex.
BTCB, a BEP2 token pegged to Bitcoin. Pegged tokens such as BTCB, are 100% backed by the native coin in reserve, which is Bitcoin (BTC) in BTCB’s case. Tether (USDT) is a stablecoin intended to make digital currencies a viable form of payment as it is pegged in values equivalent to traditional currencies like the US dollar.
What is Binance Smart Chain?
Binance Smart Chain, also called BSC is a blockchain issued by Binance. It is not to be confused with Binance Chain, which is a different blockchain! Even though it is issued by Binance, BSC runs independently from Binance. BSC has been launched late 2020 and has since then at times conducted more transactions than Ethereum and was the reason for the price jump of the BNB coin as BNB is required to pay for gas and demand soared. BSC is 100% compatible with Ethereum, meaning the same smart contracts work on both blockchains and most wallets start to support both blockchains.
What are the benefits for users?
Some of the benefits of Binance Smart Chain include:
- Participating in a growing digital asset ecosystem powered by Binance DEX, the leading decentralized exchange
- Cheap transaction fees that reach as low as 1 cent
- High performance with a network capable of producing a block every 3 seconds
- Cross-chain DeFi mechanisms that increase DeFi interoperability
- A supportive Binance ecosystem that funds and bootstraps many DeFi projects
- A growing ecosystem of millions of users across Binance.com and Binance DEX
- A network of major crypto projects already collaborating with BSC
Why is Vertex launching Binance Smart Chain on Vertex?
To put it simply, BSC is fast and cheap. Much faster and cheaper than Ethereum at time of writing. This is not limited to BNB (Binance Coin) transactions only as almost every major coin is issued by Binance on the BSC as a wrapped coin as well. This means, you can easily transfer Bitcoin, Ethereum, USDT or any other major crypto from and to Vertex almost instantly for less than $1.
What is a Wrapped coin (token)?
Wrapped coins are tokens issued on a certain Blockchain, that represent a token on another Blockchain. Binance for example has issued over 21,000 Bitcoins (BTC) on the Binance Smart Chain called BTCB. To not create money out of thin air, those 21,000 Bitcoins are owned on the “real” bitcoin blockchain by Binance and held in custody. Meaning, every BTCB is backed 100% by a real BTC. It is the same concept as for stable coins such as USDT and USDC but in case of Binance they transparently show the Bitcoins they hold in custody on their website for everyone to see. Wrapped coins also exist on Ethereum (wrapped Bitcoin) but those are rather useless by now, as Ethereum is more expensive than Bitcoin to send around (Thank you, Uniswap).
Difference BTC and BTCB Explained
There is none, at least not for Vertex and Binance. If you buy or sell Bitcoin on Vertex, it is Bitcoin! You can deposit 1 BTC and withdraw 1 BTCB without any conversion. You will not see BTCB as a new coin on Vertex but when withdrawing, you can chose between a Bitcoin blockchain transaction or a Binance smart chain transaction, giving you the option to decide.
How can you profit as a crypto trader?
With the high network fees out of the way, Vertex Market has solved a big problem and removes a huge burden from you, the traders, by offering a cheap alternative that improves the profitability of your business operations and trading activities. If you want to know more about how BSC will make things a lot easier and cheaper for you, join the official Vertex Telegram group.
You can trade a range of cryptos on Vertex including Bitcoin, Ethereum, Litecoin, USDT, Bitcoin Cash, and USDC.