How Nigerian online store got multi-million dollar investment via Twitter

CC GLOBAL BUSINESS DESK

At 10, Nigerian-born Sim Shagaya began writing computer codes. At Christmas, he would program his basic computer, run syntaxes, and connect it to a TV set to display ‘Merry Christmas’ and a digital Christmas tree. Many years later, upon graduating as an Electrical Engineer from George Washington University, and earning his MBA from the prestigious Harvard Business School, he became the Vice President of Rand Merchant Bank (West Africa), after which he led Google Africa. Over the years, he has founded several tech start-ups – iNollywood, E-motion, DealDey, and Konga – the latest of which is Konga.com, a Nigerian online shopping mall launched July 2012 with 7 workers, which currently has grown to 130. 

Along this eventful career, the tech geek has learnt that the key to enterprise success isn’t necessarily superior technological solution but people and relationships. “Business is transaction with individuals not machines or assets. Business, is people,” he says.

"And I sincerely want to make them happy."

This people-centered philosophy has fundamentally shaped Shagaya’s leadership and company strategy at Konga Shopping Company. During the entire course of interviewing him, he addresses his Vice President, Marketing Onyeka Akumah (who was also present) as a ‘brother,’ not like a subordinate. A substantial 10 percent stake of his multi million dollar e-commerce company is shared among some members of his staff. He discloses, “even junior officers in customer service have ownership stake in this company.”

Notably, in an hour of discussing with Sim, he mentioned ‘customer service’ 9 times. Externally, Sim is bent on ensuring customers derive the deepest satisfaction on orders placed from his online store. “We would even install your ordered TV set for free,” he points out.

“Customer service is our North star. That’s the prime reason Naspers MIH found Konga and invested in us. We had knocked on countless doors in Mayfair and London for months, seeking funding.”

But the investors kept telling them: “We are not looking at Nigeria. Nigeria is too early. We are looking at India and Indonesia.”

Meanwhile, Konga’s efficiency at logistics systems and focus on consumer experience had helped the retailer garner customer loyalty and brand equity. Unknown to Sim and his team, while foreign investors turned down Konga’s investment proposal, South Africa’s media giant Naspers MIH Internet Africa, came across several tweets and blog posts testifying of Konga’s good customer service. 

The testimonials were overwhelming; they riveted the South African media giant’s attention. Two years earlier, Naspers MIH had operated an e-commerce business in Nigeria. But a discouraging performance and inability to make near-term profit forced the multinational to shutdown that operation. Konga’s impressive performance presented Naspers MIH an opportunity for a comeback into Africa’s largest market.

“We think they (Naspers MIH) did some test orders at Konga.com that went well,” Sim shares.

“But they (Naspers MIH) wouldn’t admit to it.” Sim had us all laughing!

Eventually, Naspers invested cash for equity in Konga under a non-disclosure term that makes it illegal for both parties to reveal specific facts about the deal. Reports have inaccurately put the size of equity acquired by Naspers at 50 percent. Sim discloses it is “significantly less.” What is not in doubt is that the serial South African online business investor poured an 8-digit million dollar cash into Konga. The business of online retailing for a market as large as Nigeria is capital intensive.

According to Sim, “online retail is not really a tech business.” It is more of massive retail with DHL-like proportions of logistics.

Konga has its central distribution center in Lagos warehousing all its inventory, with two sorting centers in Abuja and Port Harcourt which act as regional depots. From Lagos, products are transported to the sorting centers to meet orders coming in from around the regions, before being delivered to consumers. With Naspers’ investment, the retailer plans to engage in a plethora of offline marketing, improve logistics systems with better people, IT and working capital, and push out more sorting centers across Nigeria to deliver orders faster and more precisely.

“And this is the super-complex part. The decisions of what these distribution centers would look like in 2016, have to be taken now. Also you don’t want to stock a mobile phone the market wouldn't want, in 6 months.” 

In China, where arguably everything is manufactured, online stores can be run essentially in a living room with the orders supplied from the numerous manufacturers around. Because Nigeria is not a manufacturing country, the market is at the edge of global supply chain. Consequently, all-in-one retailers in the country need thousands of square feet of land to adequately stock supply for its 160 million peoples.

“Even Amazon’s total warehousing land area would cover from here (Ilupeju) to FESTAC,” Sim states.

Massive warehousing of this magnitude cost millions of dollars to acquire and millions to insure too. Last year, Actis reportedly raised over $200 million to construct new facilities to accommodate expansion plans for Shoprite in Nigeria. According to Sim, who’s from Plateau state in North-Central Nigeria, the country lacks this kind of facilities and the few available ones are deployed by major corporations like Nigerian Breweries. Konga would have to acquire land and start constructing its warehouses, he quips.

“Building a nationwide retail infrastructure is tough. It is even harder to secure funds. I don’t know how our entrepreneurs are surviving,” Sim frankly asserts.

Being a pioneer has its disadvantage. With no prior online retail experience or template to follow in Nigeria, Africa’s second-largest economy, the Konga team has had to learn as the business grew, making mistakes, and relearning, in the middle of fierce competition. Konga’s uncompleted story is like the first human flight to the moon; a thoroughly calculated risk into the unknown.

The task may be daunting, but Sim Shagaya is a man who knows his onions. The 6 feet tall serial entrepreneur projects preparedness and confidence.

“This thing will take 10 years to build. Even Russia and China are still rated as early e-commerce markets. So don’t judge us yet. Konga is a bet on Nigeria. E-commerce in Nigeria will grow not on internet penetration but if the disposable income of the average resident increases!” Sim affirms.

When asked which product Nigerians ordered most, Sim’s reply was “the mobile phone… with clothing following strongly.” I tried to trick him to divulge confidential information: “I think the Blackberry sells most. What do you think? Is it the Blackberry? Samsung? iPhone? The amiable man burst out laughing.

Boko Haram, perpetrators of systematic religious and ethnic cleansing reject amnesty suggestion from their Northern benefactors

Blood on their hands - The Arewa connection to Boko Haram

ABUJA - Nigeria (CC GLOBAL DESK) 

President Goodluck Jonathan's proposed plan to grant amnesty to members of the terrorist Islamic organization, Boko Haram has been rejected by its key leadership, the Shura Council, which is the supreme decision-making organ of the terrorist organization, reports say.

According to reliable sources within the Intelligence community, the group are said to be wary of the real motives of its primary benefactors, the Northern elite in asking the Nigerian government to grant them amnesty.

The group is said to have intimated embedded Intelligence sources that justice could only be found in the Quran and that they (Boko Haram) do not recognize the Nigerian Constitution, while also disavowing the legitimacy of Nigeria's democratically elected government.

The Borno State Commissioner for Information and Culture, Mr Inuwa Bwala, has however appealed to the terrorist Islamic sect to see reason and embrace dialogue, with a view to restoring lasting peace in Borno State and the entire North.

CC has gathered that there are serious rumblings within the Nigerian Intelligence community as well as the upper hierarchies of government as to the justification and reasoning behind granting amnesty to a group (Boko Haram), that has engaged in an orgy of systematic killings of innocent people, based upon their victims' ethnicity and religious affiliation (Christianity). 

CC has also been reliably informed that there is credible information available to the Service Chiefs, the Senate and House leaders, as well as the Presidency, that ties the sponsorship of Boko Haram and terrorist groups in the North to top Northern leaders, who still felt aggrieved by the results of the last Presidential Elections in Nigeria.

According to reliable Intelligence sources, a certain former military dictator and another prominent former leader of the ruling PDP, still with aspirations of becoming President, are in-fact the primary sponsors of these terrorist groups.

Making things even more complicated is the fact that various international and local watchers of events, with influence in the international community, as it relates to potential legal prosecution on the basis of genocide and war crimes, are miffed that the Nigerian government would even consider granting amnesty to a group of terrorists, who have shown absolutely no remorse and actually have no justifiable basis for their actions.

Their victims have been mostly innocent civilians (including women and children) who simply were of a different ethnic or religious persuasion.

More to follow.

Nigeria's reclusive billionaire

Chief Antonio Oladeinde Fernandez

By DAVID K. SODEINDE - CC

He is 76 years old. He is a billionaire with 6 Private Jets. He also owns a Chateau in France, once occupied by Napoleon Bonaparte, former Emperor of France.

Welcome to the world of one of Africa’s richest men: HIS EXCELLENCY, CHIEF ANTONIO OLADEINDE FERNANDEZ, Ambassador Extraordinary and Plenipotentiary Permanent Representative.

When it comes to the most impressive and exuberant display of the splendor of wealth, Fernandez's style is second to none. The name ‘Fernandez’ is Portuguese in origin and delineates the popular Fernandez family of Lagos. 

Historical accounts show that the Fernandez family were originally descendants of freed Africans that had been enslaved in Brazil, where Portuguese is the official language. Some of the first modern-styled buildings in Lagos were built by the Fernandez's and these buildings are known for their spectacular Brazilian architecture. 

Portuguese navigators were also the first European explorers to reach Lagos State. Actually, they gave the state the name 'Lagos'.

Recently, Ovation Magazine did a 40-page spread on the reclusive billionaire. 

Outside view of his Yacht 'YEMOJA'

Even though he is a Nigerian, he has held the following positions across Africa:

-Permanent Representative of Central African Republic at the United Nations   

-Special Adviser to the President of Mozambique on International Economic Matters   

-Ambassador-at-Large for the Republic of Togo and Angola.

-Consul for the Republic of Benin  

-Special Adviser to the Angolan President Eduardo dos Santos (still holds this position)

-Ambassador and Deputy Permanent Representative of Mozambique to the UN

-Deputy Minister of Finance in the Kingdom of Swaziland

Chief Fernandez is well educated, with degrees from Cambridge and Columbia and 

has extensive connections with renowned global political and business leaders, including

Nelson Mandela and George Walker Bush.

His career has however not being without controversy as his long track record of 
"unconventional" business deals have made him powerful enemies, particularly in Nigeria.

His personal fortune is from bauxite, oil and diamond exports but his net worth (said to be
anywhere from $10 to $50 billion remains shrouded in mystery.

The Yoruba High Chief prefers it that way.....

Nigeria Special Forces kill 14 Boko Haram terrorists in Kano

Nigeria Special Forces - JTF

By DAVID K. SODEINDE - CC

Nigeria Army Special Forces on Sunday averted another major attack by terrorists in Kano by raiding their hideouts at Unguwa Uku area of the ancient city.

Acting on key intelligence tip off, the Special Forces unit intercepted a Volkswagen Golf, primed with explosives, which some terrorists had wanted to use and wreck havoc during the Easter celebration in the city.

Residents of the area said the soldiers thereafter invaded a compound housing the suspected terrorists but were greeted with explosions. They added that the operatives who were not deterred exchanged gunfire with the terrorists for about four hours.

The spokesperson for the Special Forces, Ikedi Iweha, was quoted as saying that they killed 14 Boko Haram suspects in the raid.

The Commander 3 Motorised Brigade, Bukavu Barracks, Kano, Brig.-Gen. Iliyasu Abba, confirmed the incident.

"My men on search operations in the wee hours of this (Sunday) morning at Layin Yan'awaki, Ungwa - Uku general area suddenly came under fire from terrorists that triggered a gunfire," he said while conducting journalists round the scene.

"It was an opportunity to demonstrate our superior fire power, and the gallant officers and men gave a good account of themselves but unfortunately we lost one of our soldiers and another one was injured."

As of 4 pm local time on Sunday, the area was still cordoned off by security operatives.

Many panic-stricken Christians could not summon courage to attend Easter service in their churches despite the high presence of security operatives in the metropolis. Churches like Our Lady of Fatima, St Louis, St Thomas's, St Stephen's, St Georges and Holy Trinity had low turn out of worshipers while others simply did not open.

Before the raid, security operatives and policemen had been deployed in strategic locations in the city. 

Armoured Personnel Carriers were also seen patrolling the flash points.

In Jos, Plateau State, the much-advertised rally to mark the end of the Easter festivities did not hold as church leaders advised their followers to go back to their homes and celebrate quietly.

Many of them had gathered in front of the headquarters of the Church Of Christ In Nigeria to begin the procession that would have terminated at the Rwang Pam Stadium when they were given the advice.

The rally, which was organised by the state branch of the Christian Association of Nigeria, was abandoned after the police warned against it.

There had been clashes in the suburbs of the city, which had necessitated a high security alert.

However, in his Sunday Easter message at the Our Lady of Fatima Catholic Church, Archbishop of Jos, Most Rev. Ignatius Kaigama, urged Christians not to see the end of the Lenten period as a time to go back to their old ways, but to continue to allow the spirit of Christ to be in them.

He admonished them to imbibe the spirit of forgiveness, which the period signifies.

"All the troubles we have in Nigeria is because we have not allowed the spirit of Christ to take charge of our lives. Therefore, as we celebrate Easter, we should look up at that Cross of Calvary, where Christ hung more than 2,000 years ago and reflect on the essence of that sacrifice," the cleric said.

Meanwhile, the Commissioner of Police in the state, Mr. Chris Olakpe, has called on warring parties to shun hatred and to come out for genuine dialogue in order to curb the growing insecurity in the state.

Olakpe stated this on Sunday in Jos when Isoko people living in Jos hosted him.

Earlier, the President of Isoko Development Union in Plateau State, Mr. Ezekiel Udubrae, had said the Isoko would avail the commissioner with any information that would enable him succeed in the state.

Time to leave Tiger alone and let him be.....

Tiger Woods

Sunday Viewpoint - CC Chief Editor

Legendary golfer Tiger Woods recently reclaimed his top ranking in the Golf World and NIKE promptly put out a marketing ad titled "Winning Takes Care of Everything".

As expected, this has created some controversy as there are those who feel this sends the "wrong message" that Tiger cheating on his wife (leading to their divorce) was not such a bad thing after all.

Now, if you were someone that had been on Mars for the last 3-4 years, you would be inclined to ask what exactly Tiger did to warrant most of the venom being spewed his way and rather sadly, some of it virulently racially motivated (a visit to the Yahoo comments section of a Tiger Woods story will give credence to this assertion).

The fact of the matter is that Tiger has been a rather contentious personality to the two aisles of the historical racial spectrum in America - white and black. To many blacks, long before his fall from grace a couple of years ago, he was never accepted as one of them, mostly due to the fact that Tiger himself never identified with African-Americans as his famous Caublinasian rant a while back seemed to lay credence to the latter assertion.

To whites however, Tiger was never a "problem" or so they thought until he showed his true colors with his serial affairs while being married to his blonde Swedish wife, a former nanny of Swedish golfer Jesper Parnevik.

While no one (including this writer) is condoning what Woods did to his family, it smacks of high-handed criticism that a broad American populace that is exposed to the rather frequent amoral forays of Hollywood and its elected officials (including one former president at least) feels this man has no right to pick up the pieces of his life and get a fresh start.

Tiger Woods had an affair on his wife, like probably 60% of men and women in this morally lax society where marriage vows actually mean nothing and to continually crucify him as if he committed high crimes and misdemeanors is really quite troubling and at best, befuddling.

President Clinton never apologized to the American people as Tiger did and I am actually one of the many reasonable folks that felt he owed nobody an apology except his former wife and immediate family members.

Tiger did make amends to his wife and his family, with the former more than well compensated for the hurt he caused her, although no amount of money really can make up for the humiliation she and her children were subjected to.

Having had the opportunity to watch Tiger since he burst onto the scene 16 odd years ago and captured the imagination of the world (not just the golfing world), it is quite heart-warming to see that he remains the same person he has always been - secure in his own skin and accepting of all God's children, regardless of race, creed or color.

As the highly respected Clarence Page stated in his PBS piece a while back, "Tiger Woods doesn't just play golf; he upsets the game. He upsets a lot of games; like the color game, an ancient American game, Tiger is a person of colors, all colors."

It is indeed time to leave Tiger alone and let him be.

Nigeria's Golden Eaglets defeat Raul's Al Saad

The famous Aspire Academy in Doha

From the CC SPORTS DESK

Nigeria's Under-17 national team yesterday defeated Qatari Premier League side, Al Saad by one goal to nil at the majestic Jassim Bin Hamad Stadium in Doha.

The Qatari currently features the all-time goals leader in the UEFA Champions League competition, as well as Real Madrid and Spain legend, Raul Gonzalez.

The Golden Eaglets are currently touring Qatar and are guests at the famous Aspire Academy (pictured above) and also recently thrashed the team from the latter by seven goals to one.

The tour is part of their preparation for the CAN U-17 Championship in Morocco from April 13-27.

Africa is expected to send four team to the FIFA U-17 World Cup later this year in the United Arab Emirates.

Nigeria has won the U-17 World Cup a record three times with all their triumphs coming on the Asian continent - 1985, 1993 and 2007 in China, Japan and Korea respectively.

This current team is said to probably be the most talented in the history of the Golden Eaglets having scored a whopping twenty-one goals while conceding just one, in the qualifying series for the African zone.

Nigeria's Flying Eagles likely to face Portugal at FIFA U-20 World Cup

From the CC SPORTS DESK

Nigeria's junior national team and current African Youth Champions, beat their Malian counterparts by two goals to one, in the third place match of the ongoing African Youth Championship.

The Flying Eagles, as the team is fondly called, thus claimed bronze at the cadet tournament and will likely play in Group B at the FIFA U-20 World Cup, later this year in Turkey.

Their opponents in that group will include Cuba, Korea Republic and Portugal.

The Flying Eagles lost the opportunity to defend their African title which they have won a record six times, when they lost to their Egyptian counterparts earlier in the week, in the tournament semi-final.

The final will be played later today between Egypt and Ghana but all four semi-finalists have already qualified for the World Cup in Turkey.

Nigeria has never won the FIFA U-20 World Cup having lost twice in the finals in 1989 and 2005 to Portugal and Argentina respectively.

Russia urges restraint from both sides of the Korean standoff

From the CC GLOBAL DESK

MOSCOW – Russia cautioned against aggressive posturing in response to increasingly bellicose North Korean rhetoric on Friday, saying that it could spiral into violence.

"We are alarmed that along with the adequate reaction from the UN Security Council and the collective reaction of the international community, unilateral action is being taken around North Korea that involves increased military activity,” Russian Foreign Minister Sergei Lavrov opined after talks with his Ukrainian counterpart Leonid Kozhara.

Lavrov did not single out any specific country, but urged all sides involved in the Korean standoff to exercise restraint.

This appeared to be a reference to the recent flare-up in tensions between Pyongyang and Washington in the wake of joint US-South Korean military exercises close to the border.

South Korea and the United States began annual large-scale military exercises, code-named Key Resolve, on March 11. The drills involve 10,000 South Korean and 3,500 US troops.

Prior to the exercises, Pyongyang threatened the United States with a preemptive nuclear strike amid warnings that it plans to terminate the Korean War Armistice Agreement.

It warned of retaliatory action if the United States and South Korea went ahead with the drills.

The United States on Thursday dispatched two nuclear-capable B-2 stealth bombers on an “extended deterrence” practice run over South Korea.

US officials said the exercise should serve “to demonstrate very clearly the resolve of the United States to deter against aggression on the Korean Peninsula.”

North Korea responded on Friday by placing its strategic rocket forces on standby to strike US and South Korean targets.

Nigeria's Service Chiefs say plot to bomb Lagos was real

Admiral Ola Ibrahim - Nigeria's CJCS

From the CC GLOBAL DESK

The threat to bomb Lagos, Nigeria's commercial capital, reverberated in Abuja yesterday when service chiefs briefed the Senate on the spate of insecurity in the country. 

Presidential Adviser on National Assembly Matters, Senator Joy Emodi, led the service chiefs into the chamber after the public gallery was cleared. Led by the Chief of Defence Staff (CDS), Admiral Sa'ad Ola Ibrahim, Lt. Gen Azubuike Ihejirika (Army) Vice Admiral Ezeoba Dele (Navy), Air Marshal Alex Badeh (Air Force), and Mr. Ita Ekpeyong of the Department of State Security (DSS), they all briefed the Senate behind closed doors. The briefing took over six hours.

CC gathered that the service chiefs confirmed to bewildered senators that the plan by the terrorist group Boko Haram to bomb Lagos, was real. A source said: Security agents and stakeholders fear that should Lagos be hit, being the commercial nerve center of the country, there is no telling what the response from the South-West would be…" The Inspector-General of Police (IGP), Mohammed Dikko Abubakar, was absent at the meeting.

He was initially represented by the Deputy Inspector-General of Police (Administration), Suleiman Fakai, who may have been rejected by the Senate. Already incensed that the IGP did not honour the invitation, Senate President David Mark reportedly wondered why the most immediate senior officer, the DIG (Operations) did not represent Abubakar at the briefing. Fakai told the Senators that the DIG (Operations) was at a meeting with a minister only to amend it later that he was also going to brief President Goodluck Jonathan.

Senators at the executive session told CC that this excuse may not have gone down well with Mark, who told Fakai that the Senate would not take kindly to the snub with a strong reminder that as an arm of government, it would no longer tolerate the manner in which its summons are treated. 

Fakai was said to have been ordered out of the chamber thereafter. One of the reasons Fakai may have been stopped from briefing the house may be because he was not equipped with any strategic paper or talking points to present before the Senate on what the police are doing to unravel the Boko Haram threat in Lagos.

It was gathered that in the schedule of appearance of service chiefs before the Senate, the IGP was listed first on the line to brief the lawmakers. Sources close to the Police Affairs Committee said the force had advance information about the Senate briefing and were advised to, at least, prepare some notes before coming to the chamber. But another version said that Fakai was allowed to brief the house after some pleas. 

He filed out of the chamber with the other service chiefs as the session ended, late afternoon local time. 

Speaking with newsmen after the session, Senate spokesman, Enyinnaya Abaribe, said the meetings would become regular, adding that the chamber was satisfied with "the level of interaction with the service chiefs and their efforts in making Nigeria a safer place. 

"We devoted the entire plenary to an interaction with the service chiefs and other heads of security agencies in Nigeria with a view to finding out the problems and work with the different security agencies in Nigeria in order to resolve them.

"We are calling on Nigerians to cooperate with the security agencies to resolve the security issues." Asked whether the closed-door session discussed amnesty for Boko Haram, Abaribe replied: "Any other decision is a policy decision that would be taken by the Federal Government. 

The interaction is aimed at making sure that in the shortest possible time, the security issues will be resolved." The Senate Committee on National Security and Intelligence, it was further gathered, was directed to follow up on the briefing.

Increasingly irrelevant ICC drops case against Uhuru Kenyatta's ally

By DAVID K. SODEINDE - CC

Against the backdrop of increasing criticism by African countries as to why only African leaders seem to be the only ones being tried for alleged "crimes against humanity", the International Criminal Court (ICC) has dropped charges against Francis Muthaura, a co-accused of Kenya's presidential election winner Uhuru Kenyatta.

Mr. Muthaura was accused of fueling violence after the 2007 election.

Lawyers for Mr. Kenyatta, who won last week's elections, said similar charges against him should now be dropped.

His trial is due to start in July.

Mr. Muthaura, a former civil service chief, was on the same side as Mr. Kenyatta during the disputed 2007 election, after which more than 1,000 people were killed and about 600,000 were left homeless.

Mr. Kenyatta is accused of organizing attacks on members of ethnic groups seen as supporting Raila Odinga against President Mwai Kibaki. President-elect Kenyatta maintains his innocence and has denied the charges.

There are strong indications that the decision to drop charges against Mr. Muthaura could have a bearing on the case against Mr. Kenyatta, who beat Mr Odinga, a distant relative of U.S. President Barack Obama and preferred choice of western leaders, in the just concluded presidential elections.

Both men (Muthaura and Kenyatta) were accused of developing a plan to get the feared Mungiki sect to attack ethnic Kalenjins, seen as supporters of Mr. Odinga in 2007.

But a key witness - like most of the so-called "witnesses" of questionable character and integrity, who had been due to testify that Mr. Muthaura had been present at a meeting where this plan was formulated, has admitted lying and taking bribes and so his evidence has been dropped.

Mr. Kenyatta's lawyers have argued that the evidence being relied on by prosecutors at the ICC is utterly flawed and as such there is no credible evidence against the newly elected Kenyan Chief Executive.

Mr. Muthaura was among six people who were originally charged by the ICC - two others, Hussein Ali and Henry Kosgey, had charges against them dropped earlier.

Mr. Kenyatta contested the March 4th election, despite being charged. He said he was innocent and vowed to clear his name in court.

He won with 50.07% of the vote, compared with the 43.31% for Mr Odinga.

Mr. Odinga is challenging the result in court, claiming it was marred by irregularities.

In 2007, he lost to Mr. Kibaki, who is now stepping down at the end of his two terms.

Mr. Kenyatta backed Mr. Kibaki during the 2007 election.

His running mate in last week's election, William Ruto, supported Mr Odinga in 2007.

Mr. Ruto is also due to stand trial at The Hague for orchestrating violence against supporters of Mr. Kibaki in 2007, but he has also strongly maintained his innocence.