The Nation Newspaper

Category: Small Business and Entreprenuership

  • Tips for successful entrepreneurship, by SMEDAN, others

    ENTREPRENEURS have been advised to be determined and patient, if they want to succeed.

    An official of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Yinka Fisher gave the advice at a two-day workshop held in Kirikiri for Nigerian Prisons Service (NPS), Lagos Command officials by the Prison Fellowship Nigeria (PFN) in conjunction with the Covenant University (CU) and Institute of Entrepreneurs.

    Fisher, who represented the director-general, said entrepreneurs should also be time managers, risk calculators, innovative, visioners and problem-solvers, if they really wanted to be achievers.

    He advised the prison officials  that one day they would quit service either by resigning or retiring, and that it would be good for them to prepare now, instead of being taken unawares.

    He also advised the officers to use their spare time while in service to start a business and nurture it to fruition. He however added that not everyone could go into business.

    A Professor of Civil Engineering,  Covenant University (CU),Ota, Ogun State, David Olukanni advised officers to see their work as service to God and mankind.

    Olukanni, who represented the varsity’s Vice Chancellor, Prof Aderemi Aaron-Anthony Atayero, said the prisons officers should look beyond their uniform and use their talent to serve the country. He noted that everyone has a role to play in nation building. Every one, he said, a responsibility.

    A Professor of Psychology in the varsity, Olujide Adekeye, who spoke on leadership, said the subject is easy to learn but difficult to practise. ‘’No one is an expert in leadership,’’ he submitted.

    He listed seven leadership skills as communication, goal setting, motivation, team building, change leading, conflict management and coaching. He attributed causes of leadership failure to be inability to organise details, unwillingness to provide support, fear of competition from followers, lack of imagination and emphasis on authority.

    To avert leadership challenges, Adekeye said there should be clarity of purpose, team building, communication and mechanism for dealing with conflicts.

    PFN Executive Director Ben Iwuagwu said the objective of the group is to share the love of God with prison inmates. At a point, he said, the group discovered that it was not enough to preach but to also train the inmates. It was for this that the Life Recovery Pre-release Empowerment Programme (ONISEMUS Project) of the association was launched to cater to the needs of the inmates, he said.

    Iwuagwu praised CU for partnering PFN, saying that their assistance over the years was noteworthy. He urged the prison officers to use the knowledge they would gain from the training to do their work better. He also thanked SMEDAN for its help to the organisation.

  • ‘We are growing SMEs to drive Bayelsa’s economy’

    The Bayelsa Government will sustain its support to indigenous Small and Medium scale Enterprises (SMEs) to stimulate the state’s economy, create wealth and generate employment.

    The Commissioner for Information and Orientation, Mr Markson Daniel-Iworiso, gave the assurance after interacting with some beneficiaries of the state’s micro-credit scheme for SMEs.

    Daniel-Iworiso commended the Bayelsa Micro Finance and Enterprises Development Agency (BYMEDA) for ensuring that entrepreneurs took advantage of the opportunities offered by agency.

    He commended the Izon Ebe Micro Finance Bank for assisting in developing businesses in the state.

    He noted that the micro finance bank was playing a pivotal role in ensuring that investors in the state got facilities from commercial banks.

    Earlier, BYMEDA Director-General, Mr Ebiekure Eradiri, conducted the commissioner round the premises of some SMEs across the state.

    Eradiri informed the commissioner that SMEs in the state were enjoying funding and training support from the government.

    Some of the indigenous business concerns visited included Big Shoe Corporate EL and DE Integrated and Akpowaiwai Agro Resources.

    Others were King Koko Express, Pede Farms and Resort, and Izon Bakumo Enterprise, a welding company managed by Esther Bakumo.

  • Converting cassava to ethanol

    Converting cassava to ethanol

    In Cross River State, an innovator  Emmanuel Ntiti has fabricated machines that convert cassava to ethanol, writes Daniel Essiet.

    The machines for processing cassava into ethanol are scarce and expensive.

    But there is good news for farmers and producers. A Cross River State-based innovator and fabricator, Emmanuel Ntiti, has developed machines for processing cassava into ethanol.

    A Senior Technical Instructor at the Government Technical School, Calabar, Ntiti has developed a range of machines for small scale business owners. His agricultural background helped him to identify the various problems that farmers at the grassroots face. He then thought of how to help them. His quest led him to design and produce agriculture machines.

    Ntiti said his machine breaks waste biomass into ethanol, thereby reducing costs through savings on maintenance, production time and capital expenditures, for farmers using cassava.

    The equipment, made of iron and steel, has a distillation system.

    Ntiti is ready to deploy the technology to all parts of the country, especially rural areas where cassava is in abundance.

    He plans to deliver rural development through an industrialisation strategy anchored on building affordable machines to help farmers produce more.

    Converting cassava to ethanol, according to him, will ensure that rural communities are empowered with sustainable jobs that bring about wealth and emancipation of rural Nigerians.

    In view of the perishable nature of cassava, he is encouraging processing to be done in rural areas.

    According to him, his dream is to produce affordable machinery. To boost agriculture, Ntiti urges farmers to embrace machines.

     

  • From accounting to cake baking

    From accounting to cake baking

    For years, Uduak Obong-Mensah dreamt of establishing his own business. She has achieved this through, Menudys Concept, a firm which trains youths in cake making, writes DANIEL ESSIET.

    Uduak  Obong-Mensah is the founder of Menudys Concept. She started as an interior decorator 12 years ago,with N100,000 when the area was little known.

    Later she found an opportunity in cake business. An accountant, who had been working for some years, she realised that she had a passion for cakes. She started from Calabar and moved to Port Harcourt.

    With assistance from friends, the venture is flourishing. It has 10 permanent and15 casual staff members.

    She makes cakes with customised designs for occasions ranging from birthdays and engagements to home-comings and graduations.

    She said what set her apart are her cakes’ unique taste and flavour.

    Obong-Mensah said it took her some time to grow the business. She got past self-doubts through motivation by others.

    Her perseverance, love for helping others and learning from them has helped her.

    Yet, she wouldn’t consider herself a master in cake designing because “like any other form of art, there’s never a finish line”.

    In recent years, she learnt how to use the social media. The practice is working as she is among top women bakers one must follow on the social media.

    Obong-Mensah learnt that having referrals and backings is very important. She participated in wedding expos and other events to help spread her name.

    Besides this, to promote the sub-sector, she’s working with others to hold a wedding fair.

    Her biggest challenge is time management. But she has remained focused. What has helped her most is keeping her thoughts organised. With the cost of living and inflation getting worse, her business like others has not been spared. The prices of all the raw materials in baking have gone up, and it is challenging to keep prices at a minimal.

    Perhaps what has made Uduak-Obong succeed is her adherence to customers’ satisfaction. She said “passion for customers, integrity, excellence, team work, mutual respect” are the core value that guides her business.

    In a competitive market where many clients get raw deals, her strategy has also been to flow with international trends.

    As part of her corporate social responsibility, she is offering free training on event design, floral arrangement, and baking and still intends to offer more.

  • CAPDAN seeks collaboration on technicians

    The Computer And Allied Products Dealers Association of Nigeria (CAPDAN) has called on the Minister of Communications, Alhaji Adebayo Shittu, to facilitate the training of technicians abroad.

    CAPDAN’s President, Mr Ojikutu Adeniyi made the call during the working and courtesy visit of the Minister to CAPDAN’s office and the Computer Village business community.

    Adeniyi said that the training would make the technicians in Computer Village attain international standard in the execution of their works.

    He appealed to the ministry to collaborate with CAPDAN to build incubation centres for more training of the technicians.

    According to him, the ministry needs to include in its programme recognition for the informal sector like the Computer Village.

    “We need to drive content in the ICT sector so as to develop more Made in Nigeria products.

    “The ministry should help us facilitate provision of free broadband in Computer Village, through Nigeria Satellite which is under the ministry.

    “We are also requesting for fund for ICT research, to develop Nigeria-based software,” he said.

    Adeniyi said the Computer Village was a large gathering of hardworking, young and old Nigerians who were driven by passion for trade and technology development.

    He said that Computer Village had successfully grown the Information and Communication Technology (ICT) sector in Nigeria for the past 20 years.

    According to him, the hub has the large number of graduate and it contributes immensely to job creation, technical skills acquisition and entrepreneurship development in Nigeria.

    “Computer Village has over N1.5 billion turn over everyday online and offline and 3,500 small businesses with brick and mortal.

    “Our hub is referred to as the hardware capital of Africa, based on the qualities of hardware solutions we provide,” he said.

    Responding, Shittu said that the ministry was aware of the valuable contributions the hub was making toward creating awareness in ICT and Telecommunications to Nigerians.

    He said the ministry would do all within its power to ensure local production of computer and telecommunications devices, so that Nigeria would not continue to remain a dumping ground.

    According to him, incubation centres are being established annually in many zones and states of the country.

  • Turning fitness passion into business

    Turning fitness passion into business

    Interest in fitness is growing.Young entrepreneurs are using innovative new business models to turn their passion into thriving brands. DANIEL ESSIET reports.

    Hassan Balogun’s love for fitness began few years ago. Last year, he and his partner, Buhari Jjemilu, started Fitness Montagne.

    He said: “We started the company as students last year before graduating from studying Architecture at Oduduwa University, Ile-Ife.

    “I used to take up little jobs which, including ushering, security, activation and making and selling of framed pictures.”

    Balogun said Fitness Montagne started as a fitness page on Instagram to showcase the experts in the fitness world. Later they posted fitness tips and workout routines, before turning it into a business page where they engaged in online training.

    “We got messages from potential clients asking about the training fees and after the enquiries, we don’t hear from them anymore. I later got to know that most of the youth who were interested were handicapped by funds and couldn’t register,” he said.

    Balogun had to make the online training free, but he couldn’t continue after a while because he found it difficult to raise funds for data subscription.

    He disclosed: “At the point the online training became free. I had to ask for money from my mum to subscribe on time, so I could attend to clients. Later I stopped because it was too hard to sustain.”

    As the health and wellness programme continues to gain popularity, the fitness boot camp was added. To Balogun, it filled a large void in the industry— a comfortable place to exercise and become healthy.

    The first boot camp was a success. Many participants were satisfied with the camp’s services, which included tips on healthy foods, exercises, self-defence, dance, fun games and diet talk and creating an atmosphere where like-minded women and men can come together, build confidence and inspire one another through fitness.

    He thanked officials of the Lagos State Public Service, who sponsored the event.

    He announced that another camp would hold at the jjt Park, Alausa, Lagos on February 24. It is expected to attract dignitaries, such as Chairman, Lagos State House Committee on Health Services, Hon. Olusegun Olulade and House of Assembly member from Badagry1, Hon. Alayonde Ibrahim Olanrewaju.

    Balogun added that the camp would be unique as more exercises had been included.

  • Entrepreneurs and innovators to watch out for

    Entrepreneurs and innovators to watch out for

    An exciting time lies  ahead for young Nigerian innovators and entrepreneurs with  big and bold business ideas   this year. DANIEL ESSIET reports.

    Nigeria is set  to celebrate entrepreneurship, innovation and disruption across the small and medium enterprises and technical space. This is because the nation is going to witness enterprising entrepreneurs, technologists, company builders and investors that will promote ventures of all sizes from startups to enterprises.

    Passion Incubator( PI) co founder  Olufunbi Falayi is an innovator to watch. He is determined to help Nigerian entrepreneurs turn their visions into reality with the aid of technology, which has shaped virtually every sector: banking, healthcare, transportation, education, agriculture . PI is a technology startup incubator, in Lagos, that  helps early stage founders validate their startup ideas and refine their business model.

    With innovation hubs, having become a mainstay of the entrepreneurial ecosystem, analysts expect some of the  best minds to shine a spotlight on Nigerian tech innovation excellence. They  expect  young innovators and entrepreneurs, to come out from  Co-Creation Hub (CcHub), to  provide  solutions that will  help to change the lives of Nigerians.  In line with this, Facebook will open a “community hub space”  this  year to encourage software developers and technology entrepreneurs. The centre would host an “incubator programme” to help develop technology start-ups, while it will also train 50,000 Nigerians in digital skills. CcHub is billed to play a major role in the project.Last year, CcHub made two moves in May to tap talent and investment abroad. The Lagos-based innovation space launched its Diaspora Challenge in London: a programme that offers up to $250,000 and nine  months of mentorship to startup ventures run by Africans living in the United Kingdom(UK), United States(US) and Europe.

    CcHub operates  its Next Economy accelerator programme and Growth Capital fund, which take equity in early-stage startups while offering business support. The programme is open to businesses in three categories -¯education, fintech, and energy¯with a criterion that their startups “solve a clear problem that affects a large number of people in Africa. An  innovator to watch is Hanson Johnson. He  is Akwa Ibom’s foremost tech entrepreneur and CEO of Start Innovation Hub. The  tech focused hub is based in Uyo. Aimed at stimulating economic growth in the local community, the hub helps tech startups by providing workspaces, internet and power. They also provide seed funding, mentoring and access to business expertise. His efforts have helped place Uyo in the spotlight as an emerging tech city.

    Other  analysts are  expecting  forward-thinking individuals and startup  to  push the boundaries in everything from e-retailing,  agri tech, e-travel, e-education, business incubation , fintech to security and cloud technology.

    E-Commerce Sector

    For stakeholders, the year is going to be an eventful one with more Nigerians  focusing on building their own online stores.  E-commerce is already a thriving industry in Nigeria, especially, Lagos.

    Online platforms such as Jumia, Konga, Yudala, Payporte,Kara, Fashpa, Gloo.ng; OLX; Wakanow, will  push for Internet  customers this year. Despite shrinking purchasing power, retail sales still  sustain the big players while the new entrants  continue to struggle.

    Like the Managing Director, CEO  PayPorte Global Systems, Eyo Bassey Francis, noted, the challenge is finding ways to encourage more  Nigerians to make more online transactions with innovative solutions to boost  online sales, through  trouble-free deliveries and returns.

    A  lot of  young entrepreneurs are  building  and hosting  online stores . There are now  platforms that enable  e-commerce companies and marketplaces to sell to consumers in international markets. Yenne-eMarket, an online trading platform, founded  by  Akan Don Udom, connects buyers and sellers of old and new products and services is a  platform to watch. It was started in 2016, after he resigned from a teaching job, as an errand running service. Currently, it still offers domestic and cooperate errand services such as cooking, cleaning, laundry, babysitting, package delivery among others.The platform connects people with  international admission and flights agents who help people with flight bookings, visa processing, hotel bookings and local logistics for travelers. So many online groups will emerge this year, offering a commodities’ marketplace that connects farmers with customers. Between 2015 and last year, many young entrepreneurs  have  established online platforms which offer to save consumers trips to markets by delivering to their doorsteps  farm produce and food stuff. The platforms operate both web and mobile-based supply platform for customers to order supplies such as vegetables, groceries  and confectioneries.  Specific websites and platforms  will  provide   fertiliser, improved seedlings, agro-chemicals, extension, advisory and disease early warning..

    Hotels.ng

    Hotels.ng founder Mark Essien is an entrepreneur to watch.  Hotels.ng, raised $1.2 million to expand across Africa. Investors include EchoVC Pan-Africa Fund and Omidyar Network.

    Users performed more than a million hotel searches on the site last year, while 70,000 new customers signed up. Hotels.ng’s growth in its home market hinges on two factors: Nigeria’s Internet penetration rate, which is the highest in Africa and still increasing rapidly, and the government’s investment in its tourism industry, which is expected to contribute 5.8 percent of its gross domestic product by 2024.

    Uber alternatives

    Transportation might be a pain in Nigeria. but it is also a business opportunity. Poor coordination  and the deteriorating state of the sector is promoting  private sector  competitiveness in the bid to provide solutions  and  attracting  new businesses. Last year was really challenging  for  Uber,  with rival  service, Taxify, headquartered in Estonia, trying to get  a large chunk of the market  with  its services through  smarter products. The two may remain the major players; however, many transport sub sector specific applications and platforms will be inaugurated with a focus on hard to reach locations.

    Online farmers market

    There is an array of startups that are expected to do great  things this year.

    For instance, Farmcrowdy, a digital  agric platform,having raised $1 million from investors including Techstars, Cox Ventures and Social Capital, will  bring more small scale Nigerian farmers to a broader market . One of the latest entrants is Grain Capitals, a digital platform that gives opportunity to investors  to invest in grain storage.With support from African Development Bank and others, watchers expect the  food ecosystem to receive  a lot of venture funding flowing into the area.

    ThriveAgric

    ThriveAgric acts more like a middleman servicing farmers and individuals interested in investing in farming.For individuals, it allows easy and insured investment with a promise of 23% ROI in less than a year. While farmers get access to the funding needed to embark on their farming operations.

    Since inception last year, Thrive Agric has made notable achievements. The startup claims to have sold out more than 200 hectares of farmland, which is not up to a fraction of the 80 million hectares of arable land Nigeria is blessed with. Also, it was admitted as part of Ventures Platform’s second cohort, which got it $20,000 in funding.

    Fintech

    The lifeblood of the nation’s   emerging and growing  digital marketplace is the presence of  mobile payment solutions that are instant, seamless and  secure. This  has led to the emergence  of payment solutions that  enable seamless payment experience between marketplaces, sellers and buyers. So many fintech companies have birthed, including , Startcredits.com, to provide   online loan marketplace for  entrepreneurs to fund their  start-ups, promoting financial inclusion in the bid to fix the access to credit problems. A fintech  to watch  is Social Lender, a  digital   lending solution based on social reputation on mobile, online and social media platforms.  Social Lender is designed to bridge the gap of immediate fund access for people with limited access to formal credit. Social Lender uses its own proprietary algorithm to perform a social audit of the user on social media, online and other related platforms. Loans are guaranteed by the user’s social profile and network allowing users to then borrow from banks and other financial institutions based on their social reputation.

    One area innovations are expected is in mobile payments with more digital payment platforms growing out of the  challenge of  United States online payment provider, PayPal, not allowing Nigerians to withdraw money from its platform.

    Flutterwave, a payments platform is  making  it easier for banks and businesses to process payments across Africa. U.S. investors  have  invested  $10 million into it. Flutterwave is backed by an impressive collection of VCs: Omidyar Network, Social Capital, Greycroft, Khosla, Green Visor and more.

  • Govt to fight unemployment with certificated skill acquisition

    The Minister of Labour and Employment, Dr Chris Ngige, says  Federal Government will use certificated skill acquisition to fight unemployment and idleness among Nigerian youths.

    Ngige said this at the palace of Igwe Chukwuemeka Ilouno, Traditional Ruler of Ifitedunu Community of Anambra State.

    Ngige was in the palace to receive documents for 3,000 square metres land for building a Specialised Skill Acquisition  project in the community.

    He said the edifice to be built by the Federal Government would have hostels and offer skill courses with certification in levels one, two and three.He said the project would be a replica of the London City and Guild Academy.The minister noted that the project would be established in each state under the same model.

    Ngige said the first phase of the project, which included skill laboratories, auditorium, water and security facilities, would be delivered in three months.

    He also said the second phase of the programme would commence immediately, since the project had been captured in this year’s  appropriation bill.

    “The Federal Government is looking inward by encouraging specialisation on jobs such as carpentry, bricklaying, tiling, fashion designing, make-up and bead making and interior decoration among others.

    “This is to help redeem our youths from joblessness, occasioned by lack of white collar jobs.

    “There are no white collar jobs any longer. If you are waiting for one, you will wait for a long time.

    “People are now finding employment in the blue collar jobs, and it is even more profitable.

    “How many of you are aware that the daily pays for carpenters and other artisans have increased?

    “In Abuja they collect as high as N10, 000 per day’s job. If they get these per day jobs even if it is only five times in a month, do you know how much that is?

    “How many white collar jobs pay that much in a month,’’ Ngige asked.

    He also urged religious and traditional leaders as well as parents to strengthen the moral capacity of the young ones.

    According to him, such steps will ensure that the youths are not idle and bereft of positive ideas.

    The Deputy Governor of Anambra, Dr Nkem Okeke, expressed delight at the Federal Government’s decision to use the community as a pilot site for such a laudable programme.

    Okeke assured the minister that the state was prepared to assist in any other way to ensure that the project was completed as planned.

    “Anambra S         tate government will give its maximum co-operation to this project in order for the residents of the state to reap its benefits,’’ he said.

  • Building SMEs’ capacity for exports

    Building SMEs’ capacity for exports

    Following the increasing rejection of agro exports, the  International Trade Centre (ITC) and the Food and Agriculture Organisation (FAO) held a train-the-trainer workshop to improve packaging capacity of enterprises accessing the global market. Nigeria was represented. 

    Capacity building for Small and Medium Enterprises (SMEs) to access the export market has increased in recent times.

    This is because so many small businesses have become the main driver of national growth through exports.

    According to analysts, these enterprises account for 50 per cent of the total exports and create jobs for 60 per cent of the population.

    Although playing such an important role in the economy, SMEs face many difficulties, including rejections of their exports in the international market.

    That is why the Food and Agriculture Organisation (FAO) and the International Trade Centre are making efforts to help SMEs access markets and deepen engagement in global value chains.

    One of the capacity building fora on Trainers in Packaging held in   Dares salaam, Tanzania.

    Consultants, who   represented Nigeria at the event, included Executive Secretary, Institute of Export Operations and Management, Mr. Ofon Udofia; Mr. Alalekan Paul Akande, Institute of Export Operations and Management and  Managing Director, De-Praimmerc Consulting Limited, Mr. Kayode Oluwafemi.

    Speaking on the training, Udofia said 25 experts from six countries participated at the forum. They included Nigeria, Kenya, Ghana, Tanzania, Rwanda and Zambia.

    According to him, the training’s aim was  to build capacity of trainers to provide guidance to agro-food actors, governments and other stakeholders on appropriate food packaging.

    Significantly, he said, the content of the training was built around packaging standards, materials, branding and labelling, quantity and weights, quality of products, barcoding, food contamination and preservations.

    On the benefits of the workshop to Nigeria, Udofia said:” In most countries in sub-Saharan Africa, poor packaging is one of the main reasons local food products cannot compete favorably with imported ones.  Improving packaging of Small and Medium Agro-Enterprises (SMAEs) will contribute to strengthen the entire food supply chain, improve the competitiveness of SMAEs and benefit all food chain actors and consumers. This initiative will also support the government’s efforts in diversifying the economy from oil to non-oil based economy.”

    He added: “The mission of the team that represented Nigeria at the workshop is to put an end to rejection of products, a case of our yam rejection was discussed.”

    During the workshop an Intra-Africa Trade Promotion Mission campaign to promote trades among Africa countries was inaugurated.

    The Nigeria Institute of Export Operations and Management Executive Secretary was elected the First President of the mission, while Mr. Oluwafemi Kayode was appointed country coordinator.

    Over the years, ITC has trained a number of packaging experts in several African countries, including Ghana, Kenya, Mozambique, Nigeria and Uganda.

  • Nigeria start-ups hot for investors

    Nigeria start-ups hot for investors

    In 2017, it was a harvest of international funds for Nigerian start-ups from donors, business angels and venture capitalists, DANIEL ESSIET reports.

    The year 2017 was eventful for the Nigerian small business sector. The sector emerged as one of the hottest for investors.  Leading venture capital firms evaluated several start-ups.  Many  secured seed funding in Africa and attracted increased international support. The space saw significant investment of over $ 200 million spread across small businesses and projects. The general trend was that the seed/angel rounds got bigger.

    During the year, many startups get more than $ 50,000 investment.

    Three Nigerian tech start-ups received $8.35m in seed capital from local and foreign investors: Wi-Fi provider Tzeti ($2.1m), e-commerce start-up Cars45 $5m and Fintech firm Lydia ($1.25m).

    Fntech startup Lydia is a financial services platform, which grants individuals and African businesses access to small loans, using credit scoring algorithms.

    Another start up, online travel agency, Travel beta raised $2 million seed funding from a group of Nigerian Investors barely six weeks after the company was launched on October 1.

    Three Nigerian start-ups secured $450,000 funding from 500 Startups. The tech start-ups, which include Mail Haven, Mobile Forms and Fyodor Biotechnologies,  were part of the 36 companies drawn from across the world.

    Last year, Coding School Andela in October secured $40million funding from investors  such as  CRE VC, Salesforce Ventures, DBL Partners, etc, to fund an aggressive expansion across Africa, taking its total venture funding to over $80 million. Andela, builds high-performing engineering teams with Africa’s most talented software developers.

    A payments startup, Flutter wave, also secured funding of $10 million.

    Digital and crowd-funded agriculture platform, FarmCrowdy announced raising $1m seed fund, barely a year after it launched, from Techstars and other international investors.

    FarmCrowdy was the first and only African startup to be shortlisted into Techstars Atlanta’s accelerator programme in August. The seed fund will allow the award-winning startup to scale its operations with plans to expand to combined 20 states, work with 4,000 additional small-scale farmers and engage a combined 20,000 new farm followers and farm sponsors on its platform to learn about the opportunities in agriculture and partner farmers.

    Former Minister of Communication Technology, Dr Omobola Johnson announced TLcom Capital’s $40m seed fund for African tech startups. Mrs   Johnson is the Lead General Partner for TLcom in Lagos.

    Founded in 1999, TLcom Capital has invested in targeted businesses, which address technological issues in either large established global markets, or in the development of emerging markets with the potential for a global scale.

    During the year, former country Manager of Starta, Yele Bademosi established Microtraction to invest early in the most remarkable technical founders as well as provide support to build world-class startups.

    Microtraction commited $65,000 at two different stages to recipient startups, an initial tranche of $15,000 for 7.5 per cent equity stake, followed by an extra $50,000 (convertible note) at a $1 million valuation cap for companies that showed significant progress.

    Also, a venture capital firm, LoftyInc Capital Management announced the close of its Afropreneur Fund 1 and the launch of a new $25 million Afropreneur Fund II. LoftyInc Capital said the new fund will focus on early-stage enterprises that leverage technologies to create social impact and tackle big problems. The launch of the new fund was announced at Africa Diaspora Network’s Annual Investment Symposium in Silicon Valley.

    “The key goal of the Afropreneur Funds is to leverage these investments for social impact, contributing as much to social change and impact as to the bottom-line, lifting millions out of poverty, illiteracy, sickness and unemployment,” the firm said. LoftyInc Capital Management (LCM) is an initiative of Idris Bello and partners.

    During the year also, Meltwater Entrepreneurial School of Technology (MEST) brought valuable experience and network apart from the financial support to the start-up community. MEST, a not-for-profit organisation that invests in and trains African Entrepreneurs, with the aim to create next tech entrepreneurs and provide jobs for the continent, provides funding, space and expertise.

    It also powers a cluster of innovation networks for startups in Lagos. Headquartered in Accra, Ghana, MEST has invested $20 million since opening its doors in 2008 to aspiring African entrepreneurs and has gone to recruit talents from not only Ghana, but Nigeria, Kenya, South Africa and Cote D’ivoire.

     

    $1 million venture

    capital fund

     

    The Federal Government  through the Information and Culture Minister, Lai Mohammed, established a  $1 million venture capital to boost the creative Industry.

    He announced this in Lagos at the opening of a two-day Creative Industry Financing Conference, saying 20 individuals, each investing $50,000, are expected to help make up the required amount. So far, he said, five people had volunteered to invest $50,000 each and expressed the optimism that more investors would come forward.

    The Venture Capital, according to him, would provide seed money for young and talented Nigerians to set up businesses in the creative industry. He said Nigeria’s creative industry needs to be taken into a golden era of smooth access to short and long term financing.

    Lagos State Employment Trust Fund (LSETF)

    New set of 1, 438 beneficiaries of the Lagos State Employment Trust Fund (LSETF) received cheques totaling N924.7 million from Governor Akinwunmi Ambode.

    The governor, who presented the cheques to the beneficiaries at the blue roof Lagos Television (LTV) Agidingbi, said the initiative was geared towards providing funds for entrepreneurs, artisans and traders among others, to help boost their business and tackle unemployment challenges in the state.

    The governor in January had presented cheques totaling about N1 billion to 705 beneficiaries, who were selected after scaling through a transparent screening process in the pilot phase.

     

    Growing interest

    in Nigeria

     

    To experts, the Nigerian startup ecosystem has definitely taken off. It has been driven by increased international funding,   evolving technology space and a burgeoning demand within the domestic market.

    Lagos State Commissioner for Wealth Creation and Employment, Babatunde Durosinmi-Etti said the state is building an ecosystem with significant improvements in ease of doing business, liberalisation in taxation policies and simplification of regulatory procedures.

    He reiterated that Lagos’s economic future lay in encouraging startups, which will bring dynamism, new thinking and create jobs for the economy.

    Growing interest in Nigeria globally has led to foreign companies and funds such as Alibaba (China), showing interest in   new generation entrepreneurs. The  Global Startup Ecosystem Report and Ranking 2017, produced by Startup Genome in collaboration with the Global Entrepreneurship Network (GEN), noted  that at $2 billion, the Lagos startup ecosystem is the most valuable in Africa continent, but only second after Cape Town in terms of the number of startups.

    The study said Lagos ecosystem has the ninth highest rate of founders with an undergraduate degree at 59 per cent, while 93 per cent of them have a technical background, the third highest rate in the world.

    However, Lagos startups have one of the lowest rates of foreign customers, suggesting challenges to going global. Only 11 per cent of startups plan to go global.

    “While Nigeria is busy adding six million new internet users every year, the feverish entrepreneurial energy of Lagos and its estimated 400-700 active startups stayed consistent by providing them with useful new technologies,” the report said.