The Executive Director of Systemspecs, Deremi Atanda, says Nigeria is poised to become Africa’s technology destination. Systempecs is a payment technology company. According to Atanda, the success of the Treasury Single Account (TSA) is an indication that Nigeria has potential to lead Africa in providing technology to solve its financial challenges. He spoke on the sideline of the at the Intra-Africa Trade Fair in Cairo, Egypt. Group Business Editor, Simeon Ebulu, was there.
How do you see this fair and Nigeria’s participation?
Nigeria has a lot of good stories nobody is telling the world. We have always been known as an oil producing economy, but there are many more things that are coming out of Nigeria. The current administration I believe is taking Nigeria to the world beyond oil. We are a foremost financial technology firm coming out of Nigeria that is producing technology. First and foremost, the Treasury Single Account (TSA) in Nigeria, we believe, is something other countries can leverage. Even before the TSA, we have always been involved in providing software that drive businesses at multinational, national, local and Small and Medium Enterprise (SME) levels. So, we are here to let the world know that Nigeria has destination for robust and very comprehensive software. Nigeria has potential to lead Africa in providing technology that solves Africa’s problem particularly in the financial technology space. And we have done this for 26 years in Nigeria and we are ready for Nigeria beyond oil in the area of technology.
What has been your experience since your arrival in Cairo?
This is the inaugural edition of the Intra Africa Trade Fair and by what we can see it is achieving its objective. You can see there are about 41 countries represented here and creating a platform for intra Africa relationship and we see this as a good opportunity for African countries to begin to talk to derive business. We have not seen before now much action along the line of economic trade bloc, but with this kind of exposure where businesses have a platform to interact at a continental level for the first time it can only signal that Africa is ready to do business. We have been observing in the past few days interaction between African countries and value will be exchanged and we have also seen a huge interest in the kind of things it provides.
What value addition was the Vice President’s visit, Prof. Yemi Osinbajo to the fair?
I think that clearly signifies that at the very highest level Nigeria is ready to showcase what it has to Africa and to the continent. The presence of the vice president lends credence to that much more than ever that Nigerian companies are being backed by the government to showcase what they have to the world. I think that is very encouraging. Nigeria is beyond oil. That is the story the vice president is telling and particularly in the area of technology, and we are glad to be one of the companies being showcased to show that Nigeria is indeed, technology destination for Africa.
What contacts and with which countries have you struck deals?
We have interest from organisations from English and French-speaking countries who want to see what we can do in the area of payment technology and pay roll. So, the interests are being shown and we are making ready contacts with organisations and governments that are represented here.
It has been all round, from Kenya, where they believe they have payment to see the kind of things we do; South Sudan, where we are going to be signing a Memorandum of Understanding (MoU) with a company there as part of African Export, Import Bank (AfREXIM) thing. One of the key highlights of why we are here is that we are signing a Memorandum of Understanding (MoU) with a leading technology firm in Sudan, which is going to adopt Nigeria’s financial technology for national payment in that country.
What is the value of the deal?
That just shows you that Nigeria’s footprint in technology is going to be stamped across Africa, and the kind of thing we have done in TSA, other people can begin to apply it in different areas, both government and the private sector.
How are you selling TSA beyond Nigeria?
TSA is not a technology; it is actually a system of cash management. The only thing we have provided is technology that makes it happen. The technology we have, Remita, can work anywhere for any government that decides it wants to adopt the TSA policy and is looking for technology to make it happen. The technology that has worked in Africa’s largest economy and has driven it successfully in the last six years is available. It is robust, it is scalable, it is secured and it is backed by our understanding of the African market. That is one of the key reasons we are here.
Apart from this trade fair, how have you sold this technology outside Nigeria?
We are a company that has existed in the last 26 years, which many people do not know. People started hearing about us when the Federal Government, patronised us. We have had a very robust and successful history work at the federal level, payment system in many states and private organisations in Nigeria. We have had a footprint across Africa. Our pay roll has been adopted in about 10 countries already.
Which are these countries?
We are in Ghana, Benin Republic, Zimbabwe, Liberia, and Rwanda, among others. Our payroll has been adopted, that just shows you that Nigeria is at the front roll of economic diplomacy, if the government will take a lot more interest in non oil issues. That is why we want to be part of what government is doing; we want to showcase what we are doing under the government’s banner. We could have done ours outside, but we think that Nigeria stands at a good point right now to address economic diplomacy using technology.
Looking at the inroad you are trying to make here, can you put a value to it?
To be honest with you we do not see a single exhibition in terms of financial gains. There is something about goodwill and brand equity, and like I said earlier, when people will come you may not know, but one of the very interesting reasons we are here like signing for instance an MoU for financial technology partnership with another leading service provider, gives an opportunity in South Sudan you cannot begin to quantify. That Nigeria is becoming recognised as technology destination, you cannot begin to quantify that. For us, it is not about the immediate transaction, even though we expect $25 billion worth of engagement to happen. But one thing at a time; the first thing is Nigeria going to be considered as a technology destination. If we are able to achieve that as a major objective here, then we will be happy and we will be able to follow through after the exhibition, then catalyse, working in partnership with other technology firms across Africa.
What is your relationship with Afreximbank?
Afreximbank’s major mandate particularly under the watch of its President, Professor Benedict Oramah, is to deepen intra-African trade, and on an immediate basis, you realise that African countries relating with themselves right now trade in currency that are non African. The settlement currencies are probably dollar, Euro and pounds. That means for two African countries to deal with themselves at currencies, first they have to look for those outside Africa. As a payment technology company, we are able to make it possible for African countries to trade with themselves in their own currencies. That is one initiative Afreximbank is working on and we are glad to be involved in ways to say what is our role so that we can key into it.
Our platform hopefully, when Afreximbank’s own platform comes online, can plug into that and make sure that Remita can service African businesses that want to do business without any stress, especially in terms of payment because at the end of the trade, the critical link for trade in Africa is payment. Logistics is one of them. Even when you get logistics right, the payment has really been an issue; that is one area we are glad to work.
How soon will this materialise?
What we know by Afreximbank’s aggressive plan, which we are aware of, is that they have a pilot scheme to start in about six months, in some six African countries. So, we are working closely to see how that comes on stream and there are some major announcements they are making already. We saw a session yesterday that focused on intra-African payments. You probably got more information about how this is supposed to happen, so we are very keen to be part of that new move in Africa. And what we have done in Nigeria currently and our footprint in few other African countries has positioned us to be up on that train and be part of making doing business in Africa easier especially in the case of payment.
What is the currency to be used?
All currencies of African countries. Like I said earlier, there are 41 countries that are represented here. If anyone in Nigeria wants to, for instance, buy something in Ghana he is supposed to just put his own Naira; he does not need to worry about dollar any more. The person in Ghana will get Cedi in his own account. So, Afreximbank is at the centre of catalysing that and making sure that a typical African, even at individual level, can trade in his own currency. It is working with the Central Banks to facilitate and deepen intra-African transactions. The other beat of it when you ask what we are doing with Afreximbank is working with different companies in different countries. For instance, we have been on missions with them to African countries where they showcased what we can do in terms of technology especially what we have done in Nigeria. It has been a great facilitator of what Africa can provide for Africa and we have been a beneficiary of that
Have you been partnering with other payment companies in the continent?
Yes, we partner with different companies. Many of them from outside Africa have been contacting to partner with us from outside Africa because it is clear we have done some innovative things that not many people think can come out of Africa. There has been some engagements from North America, from Europe, core Europe who wants to partner with us and take our technology outside of Nigeria and beyond Africa and we are glad. It is interesting that while we face some challenges at home, what we do is being celebrated and recognised from out of Africa. The future is bright not only for us, but many tech firms in Nigeria that are committed to doing the right thing.
Beyond intra-Africa trade, what are you looking at?
Interesting question. Let me put it this way: it looks like many more people outside Africa are beginning to look at Nigeria and many of them have been contacting us.
How are you investing in the younger generation?
Like I said our company has been around for 26 years and it will amaze you the number of young people that have passed through us. No one, all of our skills are local. That is one thing. We are a Nigerian firm who believes in Nigeria and taking Nigeria to the world. No two, we have been investing in young Nigerians at the tertiary level. Some years back, we created a competition that we were funding to challenge younger Nigerians to know that there are opportunities in Nigeria. Thirdly, we repatriate Nigerian skills from abroad to come and join us in doing what we do so that Nigeria can be further taken to the world. No matter where you are as a Nigerian, there is some sense of pride to come home and be part of taking Nigeria to the world, and they have seen it all there. Fourthly, we trust and continue to hope that government will open its arm to encourage us and other Nigerian firms much more than we currently have.
When I mentioned economic diplomacy earlier, Nigeria can tell the story better in this knowledge economy by continuing to showcase the tech coming out from Nigeria. For us, we will continue to invest in skills, local skills that can earn for the economy. The challenge is that other countries are beginning to poach skilled Nigerians. All our skills are local, we believe in taking Nigeria to the world, we have invested in youngsters at the tertiary level. Some years back, we created a competition that we were funding, to help youngsters know the opportunities in Nigeria.
We trust that government will show more interest, and we will continue to invest in skills and build the development of these skills in Nigeria. Our workforce is Nigerian, and we are a 100 per cent indigenous company that has payment infrastructure, payment gateway, and payment systems. We have a workforce of 300 Nigerians to make things happen. But there is the challenge of retaining these skills and the challenge of the mentality that foreign is better.
