Ten years ago, the act of shopping – retail as a necessity and as a pastime – existed entirely offline in Nigeria. You go to a store, you buy what you want, you shop around – but it was a physical transaction. Often laborious too; moving from one store to another, across town, back again, only to find that what you wanted wasn’t in stock. And when it came to payments? Consumers were prepared to part with their cash with bundles of Naira to preempt the store’s POS machine not working or, in all likelihood, there not being one.
Fast forward to mass-market internet; commerce is changing – it is literally in the palm of our hands. Retail has no fixed abode. It’s on instagram. It’s on Facebook. Soon, it will be on online marketplaces that haven’t even been invented yet – and at scale.
Retail powers our country, stealthily. Ask anyone about Nigeria’s economy and the words “oil” and “gas” roll off their tongues, because we can see the results and can account for much of the revenue. However, the millions of retailers across the country – those making sure every day people get what they need and want, are virtually invisible. It is almost a clandestine economy.
At Diamond Bank, we cultivated the retail sector and built digital mobile products for retailers, because we wanted to include them in the banking community and provide a service for the underbanked. For most, cash was [and still is] king, and there was no real engagement with the banks. Not at scale. Retail was a cash economy outside of the usual economic paradigms of taxation and government involvement. For traditional banks, this was a vacuum. For Diamond Bank, we saw it as an opportunity to engage an entire community; and that is exactly what we did. In less than 10 years, we built out a retail arm of the bank that included over 15 million people. This was their first foray into retail banking. As my father and I look back on Diamond Bank’s legacy, cultivating digital banking, at scale, is one of our lasting impacts.
But that was yesterday.
Let’s look at today. And tomorrow. We are introducing Sparkle. A new iteration of what it means to support retailers, businesses and individuals in Nigeria. Beyond traditional banking. A platform that has gone from concept [securing better access to banking and finance business facilities for businesses and individuals] to an MVP; Sparkle is now being developed to allow people to do more whilst allowing businesses to be more.
At Sparkle, we want to complement the resilience with a wrap around digital service that supports retailers, individuals and SMEs, seamlessly. A silent business partner, so to speak. The businesses of today that we will be collaborating with at Sparkle are on the go. They are extremely fluid. They move with the trends and, where possible, they dictate the trends. As I mentioned – they have no fixed abode. But that doesn’t mean they aren’t building or growing. And importantly, they are digital natives – their first point of interaction with customers is online. Picture, swipe, click, purchase. It’s that easy. So how can we deliver a service that supports a tribe of digital natives who want to focus on making money and building their business, rather than be burdened with financial admin?
We are blessed with a young population [in its tens of millions] of early adopters, who are revelling in [and capitalising on] lower costs of smart phone handsets and lower data costs. Whist this means that the barrier to entry for businesses is now significantly lower, there is more competition. But that’s OK – competition is fine, but let’s all make sure we can compete, build and grow; this can only be done if you have access and support services that enable you to compete on a level playing field. This is a generation of mobile-first retailers who are powering ecommerce via social. Facebook boasts over 21m users. Instagram – 5.6m. And unlike the “developed” world, these figures are growing upwards, and fast. Sharing, telling, selling – this is where commerce lies, this is where Sparkle starts.
So what we did with Sparkle, we decided to support and build a tribe of digital natives. Those who instinctively reach for their mobile phone when they’re engaging in any transaction, be it personal or business. As we build this tribe, we are sticking to and embedding core values and principles in to how we operate; everything, absolutely everything we do is grounded in trust and transparency. We are creating a market within an established market and unpicking the barriers to entry for so many people by ensuring they are part of the growth – part of society. They are financially included. Retailers have, for so long, been excluded from society at so many levels, because they are not paying tax and engaging with state and government; Sparkle is tackling this and bringing more people into an inclusive system.
Interestingly, these are the human principles upon which we built when we started building Diamond Bank in the 1990s. Our principles are 25+ years old [and more] but our approach and execution is totally new. With Sparkle, we will provide a dedicated, personalised experience to each and every one of our users – who we hope will number in their millions in years to come. But they will not be “seen to” by traditional customer relationship managers; that’s for the 1%. Sparkle is here for all. We are building for those who don’t need to look into the whites of a bank personnel’s eyes – we are building and growing for a community of people who want fast, accurate decisions made based on unambiguous and unbiased data habits. Powered by AI and Machine Learning, Sparkle will remove emotion from decision making and put your data in your hands. Whereas other companies accrue data to sell and to profit from, we want our Sparklers to profit from their own data, but allowing them to make well informed decisions regarding their next steps. At Sparkle, currency is data.
Our Sparklers have their heads down as they create and build and test – building an MVP that delivers human principles of commerce and business. We are curating a business and lifestyle-friendly platform that will enhance the human side of doing business, at scale. We have no alternative. This is how retail will scale and businesses will thrive in Nigeria; leveraging technology and mobile to create and support a generation of digitally native businesses that provide an alternative economy for Nigeria.
Why Sparkle? Because we can
2020: Paxful, A Global Crypto Giant Sets Top 3 Priorities For Africa
Paxful Co-Founders, Artur Schabak & Ray Youssef (Source: Paxful)
By almost every metric, Africa has been central to the Paxful story; company shares about their top 3 priorities for Africa
JOHANNESBURG, South Africa- Global peer-to-peer (P2P) Bitcoin marketplace, Paxful, believes that the world has much to learn from Africa about the future of the crypto-economy and that 2020 will be a landmark year for the African crypto and blockchain industry.
With millions of users globally and Africa being the fastest-growing region, Paxful reported that the company processed almost $1.6 billion (R23 billion) in trade volume globally in 2019; the result of a steady increase of 25%+ trade volume growth year-on-year on the platform since the business’ inception in 2015. Paxful currently hosts over three million wallets, 45% of which are from Africa.
Deepen our relationship with our African users
While the peer-to-peer marketplace has enjoyed tremendous success on the continent, the company is not complacent. Paxful leadership intends to spend a lot more time in Africa over the next few years. The aim is to continue to learn from its customers and provide them with the best possible peer-to-peer finance marketplace.
With Nigeria, Ghana, South Africa and Kenya already among the leading markets, the company also expects to extend its customer base in many more markets where it is seeing a steady increase in trading volumes on the continent like Zambia and Uganda. African trading volume on the Paxful platform grew by over 57% in 2019 and the company hopes to accelerate trading volumes further this year.
Reflecting on the rapid growth of the blockchain and bitcoin sector, research from the professional networking platform Linkedin shows that blockchain tops the list of most in-demand hard skills for 2020. For this reason, another important consideration for Paxful is engaging talent in Africa. The company believes that Africa can become a leader in bitcoin skills development. Paxful hopes to expand African participation in the company’s Global Peer Programme – an initiative to encourage bitcoin users around the world to educate each other about the opportunities offered by the crypto-economy.
“We are very, very bullish on Africa and believe it is critical to the future of the crypto-economy overall. While many parts of the developed world are fixated on speculative activity in the crypto economy, people in Africa are teaching us about the true use cases of bitcoin and the opportunity it presents for greater financial inclusion of the under-banked. As a company, we want to do what we can to ensure that our platform continues to be a bridge to the global economy for our customers” Says Artur Schaback, Co-Founder and COO of Paxful.
In December 2019, Paxful and Binance, the leading global cryptocurrency exchange by trading volume and users, announced its strategic partnership in which Paxful serves as a fiat-to-cryptocurrency on-ramp for Binance, providing numerous payment methods for purchasing Bitcoin to Binance’s global user base.
Paxful has also partnered with many other strategic players in the crypto economy – including the likes of BitMart, BSpin, AirTM, and CoinLogiq – who offer a variety of complementary services to make it as possible for its users to take advantage of the power of P2P finance. Paxful hopes to work with African partners as well.
“Africa has tremendous potential and partnerships are essential in this pivotal time within the cryptocurrency industry. We are actively looking to join forces with African-born crypto players who share our passion and vision for the global crypto-economy and to join our efforts in bringing bitcoin to the unbanked masses across the continent to fundamentally help alleviate poverty, boost economies and create jobs,” says Ray Youssef, CEO and co-founder of Paxful.
Making education and social good a priority
“With bitcoin’s original mission of financial inclusion in mind, Paxful is committed to reaching as many people as possible to help them better understand the opportunities presented by the crypto-economy. With this in mind, education and social development will always be a priority for Paxful,” adds Youssef.
Last year, Paxful undertook an education drive focused on Universities. Beginning with Universities in East and Southern Africa, the initiative has reached over 1000 youths. The education workshops provided key, practical insights to the true use cases of Bitcoin, how to avoid falling prey to bad actors in the crypto-space and served to counter the over-emphasis on Bitcoin speculation. This type of education will continue to reach the youth.
In the same year, the company also launched the aforementioned Paxful Peer Program, a platform encouraging users to educate and support each other as they navigate the bitcoin-economy. The Peer Program was trialed in South Africa and has been extended to include many other markets on the continent and Asia.
To support grassroots education, Paxful will continue to invest in its #BuiltWithBitcoin initiative which has demonstrated how the cryptocurrency community can contribute to social good. Established in 2017, the initiative had raised over R3 million for charities across Africa and the Middle East by 2019.
In January 2020, the company announced that they will be building a third school in its 100-school initiative to bring quality education centers to emerging countries throughout Africa. The third school, which will come fully equipped with a state-of-the-art water well system, will be built in Machakos County, Kenya for children ages 3-6 years old and will kick off with over R400,000 donation from Paxful. The first 2 schools were built in Rwanda.
Anzisha Prize Announces 2020 Applications, Celebrates A Decade Of Empowering African Entrepreneurs
Anzisha Prize 2019 Fellows celebrate their victories (Source: Anzisha Prize)
Every year, the prize celebrates 20 African entrepreneurs, aged 22 years and younger, each of whom have a chance to win a shared prize of US$100,000
JOHANNESBURG, South Africa, February 17, 2020 – Today, the Anzisha Prize–Africa’s premier award and fellowship for Africa’s youngest entrepreneurs – is excited to announce that the 2020 call for applications is now open. Every year, the prize celebrates 20 African entrepreneurs, aged 22 years and younger, each of whom have a chance to win a shared prize of US$100,000. The grand prize winner receives US$25,000, the 1st runner-up US$15,000, and 2nd runner-up US$12,500. Every finalist receives US$2,500.
In addition to the cash prize, selected entrepreneurs will join 120 previous winners and become Anzisha Fellows, receiving business consulting support and coaching services by a team of industry experts. They also gain access to the Young Entrepreneurs Fund – a catalytic matching fund designed to strengthen the credibility of very young entrepreneurs through investment.
“It has been an exciting 10-year journey with some of the continent’s brightest and youngest entrepreneurs. With the help of key partners and those who share in our vision, we’ve been able to support and celebrate very young entrepreneurs who represent the diversity of the African continent; entrepreneurs who tackle youth unemployment with vigour and courage beyond their years,” says, Melissa Mbazo-Ekpenyong, Deputy Director of the Anzisha Prize.
To celebrate the decennial, the Anzisha Prize has planned five regional events across the continent, including South Africa, Morocco, Nigeria, Senegal, and Kenya. The events end in October with the Anzisha Prize Forum in Nairobi, Kenya where the 2020 winners will be announced. Each event is designed to catalyze conversations around youth entrepreneurship and to gather key stakeholders within the entrepreneurship landscape to collaborate with and support these young entrepreneurs.
“The Anzisha Prize has grown to become a holistic and comprehensive prize program that celebrates, nurtures, and advocates on behalf of Africa’s young job creators,” says Daniel Hailu, Regional Head Eastern and Southern Africa Programs, Mastercard Foundation. “Ensuring young entrepreneurs have a clear pathway to learn and succeed is a core component of the Mastercard Foundation’s Young Africa Works strategy, and we encourage entrepreneurs, especially young women to apply.”
Young African entrepreneurs between the ages of 15-22 years old, who are running job generative businesses, are encouraged to apply before 31 March 2020. Past winners of the prize include 2019 grand prize winner, education entrepreneur, Yannick Kimanuka from Democratic Republic Congo (DRC). Yannick grew up in the war-torn North Kivu eastern Province of DRC where she saw the effect that conflict had on schools in her community and vowed to empower children by increasing access to quality education. By the age of 20, Yannick founded KIM’s School Complex – a nursery and primary school which aims to improve the education of young children in her community.
As the program continues to influence and inspire young people to seek entrepreneurship as a career path, the road ahead is a promising one. To encapsulate the last 10 years of the program, the Anzisha Prize has chosen the word ‘Sankofa’ in the Ghanaian Twi language, which means “We have the capacity to revisit the past and extract knowledge and wisdom that we need to remake the future“.
Entrepreneurs are advised to download the application guide or apply for the prize at anzishaprize.org/apply.
For more information on the Anzisha Prize, to apply, and to nominate an entrepreneur, please visit the Anzisha Prize website.
Financial Inclusion: Ecobank Group And Alipay Partner On cross-border remittance
Alipay users to benefit from Ecobank’s cross-border remittance solution
LOME, Togo, February 12, 2020 – The leading pan-African bank, Ecobank has signed a cross-border remittance agreement with Alipay, the world’s leading payment and lifestyle platform, that aims to bring more inclusive financial services by providing a fast, safe, affordable and convenient way for workers to transfer money back home.
The partnership will facilitate instant transfers from Rapid transfer, Ecobank’s remittance solution, to users of Alipay, which serves more than 1.2 billion people globally together with its local e-wallet partners. This provides an additional channel option which will increase options available to users, help lower transaction costs and enhance the quality of service in the market.
Nana ABBAN, Group Consumer Banking Head said: “Our panafrican cross-border remittance solution, Rapidtransfer, has over the years been delivering transparent, convenient, and affordable services to the African diaspora and their African-based dependants. So, it is a natural extension for us to use it to deliver the same advantages to migrant workers across Africa. Through our partnership with Alipay we are further leveraging the scale and capacity of our unified payments ecosystem on the global stage.”
“We are excited to partner with Ecobank and use our technology to bring fast, affordable, and convenient remittance services to more users globally, especially workers who are living far from home,” said Ma ZHIGUO, Alipay’s head of the global remittances business. “We are committed to working with partners such as Ecobank, using innovative technologies to help global consumers gain access to inclusive financial services, creating greater value for society and bringing equal opportunities to the world.”
The solution will be rolled out across our entire footprint, subject to required local approvals.