Internet growth pushes Africa's digital opportunity

By Bankole Orimisan with agency report

THE clear division between traditional and digital media is fading away according to PwC's Entertainment and media outlook: 2015 – 2019 report, which also predicts unprecedented growth of the entertainment and media industries in Nigeria, Kenya and South Africa repetitively.
  The report forecasts that South Africa's entertainment and media industry is expected to grow from R112.7 billion in 2014 to R176.3 billion in 2019, largely fuelled by digital spend and at a compound annual growth rate (CAGR) of 9.4 per cent.
   Internet access in South Africa for one will rise rapidly from R32.5 billion in 2014 to R76.2 billion in 2019 according to the report, making it the largest contributor to South Africa's total entertainment and media revenues.
  Entertainment and Media Leader for PwC Southern Africa, Vicki Myburgh, said growth will continue into the near future. "This year's Outlook shows consumer demand for entertainment and media experiences will continue to grow, while migrating towards video and mobile. Increasingly, though, it's clear that consumers see no significant divide between digital and traditional media – what they want is more flexibility, freedom and convenience in when, where and how they interact with their preferred content."
  Nigeria's entertainment and media market grew by 19.3 per cent in 2014 to reach $4 billion. By 2019, the market will be more than twice as big, with an estimated total revenue of $8.1 billion. As in South Africa, the Internet will be the key driver of growth for Nigeria. Television, comprising revenue from TV advertising and subscriptions, is the other main driver.
  "Consumers are choosing offerings that combine an outstanding and personalised user experience with an intuitive interface and easy access. This includes shared physical experiences like cinema and live concerts, which appear re-energised by digital and social media," Myburgh continues.
   As in South Africa and Nigeria, the Internet in Kenya is expected to be the largest driver of growth, followed by television and radio. TV advertising will overtake radio in 2016, and Internet advertising will see the fastest growth rate at a CAGR of 16.8 per cent. Traditional mediums such as TV, radio and newspapers will continue to be the first choice for most Kenyan advertisers in the foreseeable future.
   "Affordable Internet access will continue to digitally disrupt the market in novel and innovative ways. The ongoing spread of services to mobile networks, novel devices and emerging markets will change how media and entertainment are served, consumed and monetised in multiple ways. Affordable Internet access will also inhibit the revenue growth of various sectors as consumers use it to access free, ad-funded and lower-priced subscription-based versions of new and existing media services," said Myburgh.
   The report also details growth of Kenya's entertainment and media industry which was valued at $1.8 billion in 2014, up 13.3 per cent from 2013, when it stood at $1.6 billion. The Kenyan market is expected to surpass the $3 billion mark in 2019 to reach $3.3 billion.
  "Today's media companies need to do three things to succeed: innovate around the product and user experience; develop seamless consumer relationships across distribution channels; and put mobile (and increasingly video) at the centre of the consumer's experience," Myburgh stressed.

‘Virtual card payment system to reposition the ICT industry

A major milestone was recorded in the card/electronic payment world recently with the introduction of virtual Visa card for payment/settlement and consummation of transactions. The Deputy Managing Director of Chams Mobile, the company behind the card, Gavin Young, in this interview with Bankole Orimisan, believed it cannot be clowned because it is an online card with secure features. 

How would you assess Nigeria’s evolving e-payment system and payment card industry?
It is thriving; the Central Bank of Nigeria is doing well in terms of injecting enthusiasm and coming up with certain principles which have taken off. At least, we have seen the Bank Verification Number project, for example, and what can be done when banks come together.

What do you think is responsible for the increase in payment card fraud in Nigeria, and how do you think this can be mitigated?
I’m not sure. I guess you need to talk to the banks or the CBN that knows about it because I’m not aware there is so much card fraud. But as in many countries, there is a high level of fraud. But there is the need for protection when you go to shop online frequently. And you need to monitor what is spent on your account through your mobile phone. There is also the need to change your password regularly as well.

Lets look at the virtual Visa card, how does it work?
It’s unique in that customers actually see an image of their card on their mobile phones, tablets and PCs, whereby all the essential features of a physical card are shown in it’s ‘Virtual form’; card number, expiry date and CVV number, for example. This, for many customers, negates the need for a physical plastic card, although we offer plastic cards as an option for customers requiring such.
You only need to log onto ‘kegow.com’ and access the card.

Can you tell us what a virtual card is?
The virtual Visa card is an entirely digital payment card for online and mobile use, both locally and internationally. The card is unique in that cardholders get a full card image (the virtual card) on their mobile device, personal computer, or tablet, with a plastic card offered as an option if customers prefer.
   The new payment system (introduced by Chams Mobile and Skye Bank) is expected to expand financial inclusion to millions of Nigerians by offering a low cost mobile banking solution, as the card is issued free and linked to a broad range of financial services. 
   It also offers an online payment alternative for e-commerce savvy individuals, small businesses and corporate companies, membership associations, and more. The new Visa virtual card is available under the Kegow brand. Kegow is the programme and card brand of Chams Mobile Limited.
   The virtual card payment solution, Nigeria’s first Visa virtual card payment solution, was developed with our company’s international joint venture partners Bancore AS (as the mobile financial services processor) and Global Technology Partners (as the Visa prepaid card processor).

Looking at the technology behind the virtual card, what prospect lies for the payment card industry in the future?
We’ve seen it already in the last one year or two years. We have seen massive increase in electronic banking, and I expect that to continue. I expect that the objectives of the CBN for 2020 (Payment System Vision 20:2020) would actually be well exceeded. In every area and every segment of the population, there is massive growth and we’ve been experiencing it in electronic banking. I think the challenge is all more in the informal environment. I think one way (of addressing that challenge) is to reestablish distribution element. Once you get your market like this, some of the elements of buying goods to pay electronically will be present. Once this is done for those goods and services, I think people will adopt electronic payment in the informal environment as well. It’s certainly growing rapidly but the exact distribution of buyers of goods and services should be done more electronically.

Can you explain the involvement of Skye Bank in this project?
As a mobile money operator, we needed a bank sponsor because to be within the financial services system in Nigeria, you need to be able to have a bank sponsor. You must be a Visa member to be able to do the sponsoring. It makes a lot of sense for us because we would not have operated that on our own.

What are some of the features of a virtual card as a payment solution?
It’s unique in that customers actually see an image of their card on their mobile phones, tablets and PCs, whereby all the essential features of a physical card are shown in its ‘virtual form’; card number, expiry date and CVV number, for example. This, for many customers, negates the need for a physical plastic card, although we offer plastic cards as an option for customers requiring such.
   It’s also a very diverse product with a number of applications across various business and consumer segments. These include: co-branded cards for eCommerce companies, gift cards (as money can be credited to a recipient’s mobile phone), a naira card for Nigerians in diaspora as it can be issued online, a company allowances card and, as a payment card for retail distribution as it’s supported with a unique invoicing service.

What about its security features?
On the issue of security, we take measures to guarantee high level of security. The card is an online one; so the possibility of stealing of the card is non existent. Also, the PIN cannot be accessed by an unauthorized person. Even at that, the card holder can change his PIN from time to time. 
   To make the product even more secure and convenient, we have introduced another first in Nigeria, by offering a One-Time-Password ‘Verified by Visa (VbyV)’ service that replaces the old VbyV PIN service. This means that every process, from application to receiving the card, can be done entirely online from a mobile phone, tablet or PC in under 15 minutes.

‘Yudala to support charities, create millionairs through Yuboss’

THE Chairman of Yudala, Nigeria’s first true composite online and offline retail chain, Sam Ojo, has said that Yudala is a company to watch in view of its status as a corporate organization with a conscience.
    In an online chat with the media from his base in the United States, the strategic technology consultant and one-time Chevron Head of Management Information System noted that Yudala is a movement in e-commerce and offline retail business orchestrated by distinguished professionals from various nationalities and spheres of business. 
   The company had launched its yearly Neighbour to Neighbour Mega Deals promotion from September 21st till October 2nd, with thousands of enthusiastic shoppers trooping online and to the Yudala stores to take advantage of the mouth-watering deals and extended payment terms for individuals, cooperatives, corporate organizations, educational institutions and government establishments.
  “Yudala is structured to dictate the pace and within one year of our existence, Africa’s digital commerce and offline divisions would have had a handshake on the delivery of quality products and services that Africans wished for, paid for and rightly deserve. We shall continue to unfold our innovative products and services for the benefit of all Nigerians, including government establishments, co-operatives, corporate bodies and individuals. Yudala is possibly the first true investment platform where professional Africans in the Diaspora, foreign business partners and other Nigerian-based major corporate players have come together in a well-structured business and with huge funds to invest. This is why we must roll out across Africa.” 
   Ojo also disclosed that Yudala is focused on creative employment for thousands of Nigerians and Africans by extension through its entrepreneurial scheme known as Yuboss.
  “The launch of Yuboss will reveal a little bit of our corporate philosophy. Yuboss is a league of emerging entrepreneurs who want to be their own bosses. Through Yuboss, we are offering people a chance to become millionaires without investing a dime. We have test run the scheme for one month and I can confirm that a young lady, one Mrs. Tina George who stays close to our office was paid over a N100, 000 commission (dala) last week for a 10 day effort in selling from our inventory. Her only investment was her commitment. This is the way new economies are built. 
   “With Yudala, there will be many millionaires in Nigeria in the next one year. We estimate millions of Nigerians will join this scheme by the time we officially roll it out next week. I assure you that your wives, brothers, sisters, students, the unemployed, under employed, etc. will be a part of this scheme which will reduce pressure on families. Everyone will earn income and hardworking students will be able to see themselves through school without outside assistance.
    “Though still based in America, myself and Mallam Farouk Mohammed, former OPEC Executive Management member, represent majority investors on the Yudala Board and I can confirm that we are not in a hurry for huge profit. This is why we are mandated to partner with Yudala employees. 
   “The Yudala strategy is profit sharing with all employees and another reasonable percentage will be dedicated to support charity organizations in every country we do business in. Every investor in Yudala voted for this and our consultants are working out modalities based on each country’s tax structure. We are therefore not here to exploit Nigerians and fly profit out of the country since majority shareholders are Africans.”
   When asked what percentage of Yudala annual profit will go to staff, Ojo revealed that a substantial figure has been agreed for this in line with the desire for quality human capital to deliver on shareholders’ expectations. 
   “Our bond with staff does not end with profit sharing but shall continue with our listing on the Stock Exchange and beyond. We are a company with assets and not just an e- commerce platform and that is why we have a composite structure. We have presently rolled out 13 stores nationwide in seven weeks with great retail ambience like no other at the moment and I can assure you by this time next year, we would have reached the 50 store milestone with same standards.
   “We are here to dictate the pace and in line with this, we will review our market influence with the Press in the next one year. It is important to mention that our strategy is 21st century focused and completely different from what currently exists in the sector,” he concluded.

Smile partners Samsung to Launch VOLTE in Nigeria

By Bankole Orimisan

IN line with its vision of providing superfast and reliable internet service in Nigeria, Smile Communications Nigeria Limited has partnered with Samsung Electronics West Africa, to launch the first LTE compliant smartphone in Nigeria. Smile Communications Nigeria is not only the first authentic 4G LTE provider in Nigeria but the first to go into this performance enhancing partnership with Samsung; a global technology giant.

   A joint statement signed by Chief Marketing Officer, Smile Nigeria, Alero Ladipo and Director, Information Technology and Mobile, Samsung Electronics West Africa, Emmanouil Revmatas, informed that there was the need for both companies to enhance the customer experience through their product propositions. The statement underscored the noble pedigree and innovative streak of both companies which they are determined to harness in serving the best interest of their customers. The offer will be available at all Smile Stores and some selected Samsung stores.

    Speaking on the partnership, Ladipo stated that Smile Communications is specifically focused on the importance of partnerships of this nature to deliver on the end-to-end needs of the customer. “The customer experience at our shops should create a lasting impression with the customer. A customer must enjoy the simplicity of the service and leave ready-to-go. Our partnership with Samsung gives the customer the opportunity to own the latest Samsung LTE compliant smartphone (Samsung Galaxy S6 edge with a Samsung complimentary clear cover), a 5GB bundle SmileOn plan for a fixed price,” Ladipo added.

   According to Revmatas, the Galaxy S6 edge has the world’s first-ever dual curved edge display, which distinguishes the device as the ultimate premium Smartphone. This partnership with Smile on S6 edge is the first of its kind in Nigeria, offering consumers the opportunity to drive productivity with a unique smartphone coupled with the 4G experience that Smile LTE network offers.

   “Our collaboration with Smile on the Galaxy S6 Edge LTE launch is a staunch affirmation of Samsung’s drive for novelty in the smartphone market globally. Samsung is committed to continuously engaging in partnerships that highlight innovations that create an impact in the life of consumers’. This partnership with Smile on S6 Edge will give Nigerians the opportunity to drive productivity with a unique smartphone coupled with the 4G experience that Smile LTE network offers,” said Revmatas

   The 4G LTE mobile network will allow faster Internet on the S6 Edge which includes video calls, faster music, video streaming and conferencing, faster downloads and more pictures. “We are pleased that Nigerian consumers will have the opportunity to reach new and progressive frontiers with their Samsung Galaxy S6 edge device,” Revmatas concluded.

Phase3 reiterates commitment to network efficiency, others

By Bankole Orimisan

TO further deepen investment on infrastructure in the Informations and Technology Communication (ICT) industryacross the West African sub-region, Independent fibre optic infrastructure and telecommunications service provider, Phase3 Telecom, has reinstate its dedication to maximising the sub-region’s growth potential within the sector.

  Being an indigenous firm, Phase 3, claimed to be at the forefront of increasing backbone infrastructure that will boost digital market viability and minimise the challenges of accessibility and reliability across sectors and layered connectivity needs.

   The Chief Executive Officer, Stanley Jegede, said the firm will continue invest on robust network to enable the firm extend its reach as the IT world migrates to the new era of internet of things (IoT).

   He said: “As more clients that ride on Phase3 network take advantage of the Internet of Things to deliver efficiency in their areas of business; it is very important for us to continue to extend reach as well as adopt the best technology and resource to make our network more secure, resilient and adaptive. Without this, the network will be largely exposed to incessant point of failure with fatal impact on the client and huge cost in millions on downtime.”

  Jegede added that the focus of Phase3 in the coming months; is not just to drive a network infrastructure that connects people but to be the frontrunner in scaling a network that helps grow economies and effectively support technological innovations that expand the world and make it better in all sectors.

   This is essential to accelerating the social development, growth in gross domestic product (GDP) and productivity the sub-region has been clamoring for.

   The firm which is set to mark its 12th year anniversary next month, said  because of its capacity to deliver homegrown solutions deliver significant long term value and as part of its wider West Africa roll out plan to deliver regional connectivity through a single network, it has commenced the deployment of a 228 km long aerial fiber optic infrastructure from Kano to Gazaoua in the Republic of Niger, a landlocked country that borders six other countries of Algeria, Benin, Burkina Faso, Chad, Libya and Mali.

  The project is under the Niger-Nigeria fiber-optic cable project being facilitated by the Universal Service Provision Fund (USPF) through the extension of the Backbone Transmission Infrastructure Programme (BTRAIN) programme.

Lagos to host Angel Investor Summit

TODAY, the Lagos Angels Network (LAN) in partnership with the African Business Angel Network (ABAN), DEMO Africa and Venture Capital for Africa (VC4Africa), will host “The African Opportunity: Angel Investing in Africa” Investor Summit at DEMO Africa 2015.

   The summit will bring together early stage investors and leading opinion leaders from across the continent, Europe and the US and will precede DEMO Africa 2015, the launch platform for new technology, September 24 – 25. All events are scheduled to take place at the Eko Hotel and Suites in Lagos, Nigeria

  The Angel Investor Summit will bring together investors from the Lagos Angels Network, Cairo Angels, Ivoire Business Angels, Viktoria Angels, Ghana Angel Investors Network, Africa Angels Network, Cameroon Angels, Silicon Cape, the VC4Africa Investor Network and others to exchange best practices, share lessons learned and set the road map for the future.

   Experts from InfoDev, the WorldBank, African Development Bank are expected to join and Ingressive is leading a delegation of US investors to the Summit which will also be joined by a delegation from EBAN, the European Trade Association for Business Angels, Seed Funds and Early Stage Market Players.

   Chairman of the Lagos Angel Network (LAN) and chief host of the summit, Dotun Sulaiman, said: “ we are excited to partner with ABAN, DEMO Africa and VC4Africa to host the Angel Investor Summit leading to this years DEMO Africa and providing a forum that brings together delegates from all across the world to exchange best practices, share lessons learned and set the road map for the future of Angel investing in Africa.”