Mozambique. 2. 2. Mauritius. 1. 1. Namibia. 1. 1. Zambia. 1. 1. Ghana. 1. 1. 4. 1. 7. Nigeria. 1. 1 .... NCC the Regulat
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Market Opportunities in Africa Duncan Hoyland (chair)
Head of Inward Investment UK Trade & Investment South Africa
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INSERT TITLE HERE Insert body copy here… Body copy to go here
Market
C4
C4LE
B3LE
1
1
1
3
Mozambique
2
2
Mauritius
1
1
Namibia
1
1
Zambia
1
1
South Africa
SMS 1
D7
D6 2
Angola
Ghana Nigeria
1
3
5
6
A2LE 5
Total 22
1
1
4
1
7
1
1
6
5
14
Cameroon
1
1
Senegal
1
1
Cote D’Ivoire
1
1
Tanzania
1
1
Ethiopia
1
1
2
Uganda
1
2
3
Kenya
1
2
2
5
12
31
15
69
TOTAL
1
1
4
6
2
5
Southern Africa Network Body copy to go here Kinshasa
Victoria
DRC
Seychelles
Lilongwe Malawi
Luanda Angola
Antananarivo Madagascar
Lusaka Zambia
Port Louis
Harare Zimbabwe
Windhoek
Mauritius
Namibia
Maputo Mozambique
Gaborone Botswana
Maseru Lesotho
Johannesburg South Africa
Mbabane Swaziland
UKTI Representation No UKTI Representation
Infrastructure and construction Energy and Oil&Gas Education and Skills Healthcare Advanced Engineering ICT Financial Services Rail & ports
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Market Opportunities in Africa Keith Jones
Founder, Sw7
The Sw7 Journey
Our Journey “Starting a new business and innovating is hard” “If you think starting a new business is hard, try starting one with your wife”
Start with Seven is a performance management based accelerator, with structured content an outcomes based methodology. The largest tech accelerator in Africa!
Eighty technology CEO’s, Founders and VC’s mentor for us! Five cohorts done, around ninety graduate businesses
We also run Sw7 with Standard Bank, Africa’s largest bank The only Microsoft Bizspark Plus Partner in Africa
Launching Africa’s first Fintech accelerator in January with RMI. Trade mission to London with UKTI Largest technology social media (LI) innovation community in Africa
The African Innovation Market Drivers
True Innovation
Incremental Innovation
The four types of innovation
Sector Innovation
Market Innovation
In Africa, we need a heavy dose of Market Innovation to succeed. In developed markets, they don’t.
The Network Effect drives a winner Body copy to go here takes all market
It is a risk takers market
Getting to market is all there is
As a investor/ corporate, your job is to mitigate risk
The Services Trap Body copy to go here
The Missing Middle Body copy to go here
The Funding Paradox Body copy to go here
First learning - “Global innovation models don’t work here” Second learning - “We are a B2B defined market. The B2C market won’t come until we sort B2B out” Third learning – “Our challenges are complex, our market is huge, we lead the global mobile economy. The market is lifting now. The opportunity is massive”
The Seven Constraints Body copy to go here
Market Opportunities in Africa Davies Olugenga Adebayo
Chairman, Association of Licensed Telecoms Operators of Nigeria (Alton)
OVERVIEW OF NIGERIA ICT MARKET: Mobile penetration stood at over 96.08% at the end of 2014, from less than 1% in 2001. Body copy to go here • Nigeria is the largest single mobile market in sub‐Saharan Africa in subscriber terms and the region’s second largest in revenue terms with over 120million subscribers across the various operating networks •
NIGERIA ICT INDUSTRY OVERVIEW (Contd.) The yearning for reliable and affordable services drove the first wave of growth in the Nigerian telecoms market in early 2000 Body to go here andcopy the demand persists to date but now more towards broadband services. • Strong macro‐economic performance, combined with a stability of Nigeria’s regulatory institutions. • The mobile subscriber base has grown from below 500,000 in 2001 to over 148.1m in September 2015 • The sector is a major employer of labor • Mobile penetration stood at 96% at the end of 2014, from less than 1% in 2001. Annual average subscriber growth over the past five years was about 15%, one of the world’s fastest growth rates over that period. • Nigeria is the largest mobile market in sub‐Saharan Africa in subscriber terms and the region’s second largest in revenue terms. • Telecoms services revenues reach about $10bn a year, and continue to grow in high single digit annually. • Teledensity: 107.61% •
NIGERIA MOBILE AT A GLANCE(contd) However, broadband penetration remains low at less than 10%, with the government setting a target of 20% by 2017 copy whichtowill Body goprovide here a lot of market opportunities • There are 167 Million people living in Nigeria • Mobile penetration in Nigeria stands at 96.08% or 127 million active mobile subscribers (January 2014) • Mobile web internet users now stand at 64.2M people (December 2014) •
KEY OPPORTUNITIES •
• •
Broadband roll out (Network, equipment (hardware / software supplies) Financial Services: Mobile Banking , Consumer retail: M – Commerce, MEntertainment
• • • • •
Social Services: M-Learning, M-Health, MGovernment Corporate Verticals: M-Farming, M-enterprise New technologies New Areas of knowledge Smart Energy / Power solutions
INVESTMENT & MARKET OPPORTUNITIES IN NIGERIA The Nigerian telecoms market still operates below its full potential Body copy to go here and faces fundamental, Systemic challenges, related to the need to build up a viable broadband and supporting infrastructure • Huge opportunity exist in broadband network and fixed lines, as broadband penetration is slow due to challenges of infrastructure affecting sector growth and the delivery of quality service. • Nigeria National Broadband Plan suggest that opportunity exist for over 100 million potential internet users. • Internet-to-Home Penetration is 4.6 per cent while broadband penetration is at a mere 6per cent. • A Roadmap for National Broadband Network Development in Nigeria was published in 2013. • The target is to attract investment for the construction of a cohesive and pervasive National Transmission Network with connectivity to all 774 Local Government Areas, MDAs and tertiary institutions in the country.
WAITING FOR ACCESS…
MARKET RESEARCH ALTON commissioned an industry study undertaken by Pyramid Research, an internationally renowned research and consulting firm to examine the impact of telecommunications on Nigeria’s socio-economy since full deregulation nearly a decade and a half ago. The study highlights the growth opportunities and vital industry statistics; it identifies the challenges to continuing growth of the sector, and outlines policy actions that are crucial to making Broadband a reality in Nigeria.
SPECTRUM AUCTIONING •
• •
NCC the Regulator is working with the National Broadcasting Commission (NBC) amongst others for release of the 700/800MHz Digital Dividend Spectrum in 2016 as part of the digital migration dividend. These spectrum bands will support the roll out of robust and resilient broadband network in the country. Over the next five years, the NCC has assured that it will institute an open access regime to further drive competition and support Broadband as the next phase of industry development.
Ecosystem value of $5.51Milllion by 2015 comprising Consumer Retail M-commerce, M-Entertainment etc; Financial Services M-banking; Social Services M-learning M-health M-Governance; Corporate Verticals M-farming M-enterprises M-Utilities
Rates at $1 = N225
Source: GSM Association Assessment of economic Impact of Wireless Broadband in Nigeria: February 2011.
Indirect Value
Wireless Broadband will have a direct revenue impact (spend on usage and devices) of $2.67Billion or 0.7% of GDP in 2015. • Revenue from Usage$1.57Billion. • Revenue from Devices $1.09Billion accruable to dealers who pay taxes in the States
Ecosystem Value
Wireless Broadband is expected to contribute an additional $8.44Million to GDP in 2015 across the States.
Direct Value
Impact on GDP
NIGERIA: Expected Socio-Economic Benefits from Broadband and market opportunities Wireless Broadband will create $6.22Million of indirect value through productivity and efficiency gains in manufacturing, mining, industry, agric and services by 2015 that will be located in the States
INDUSTRY CHALLENGES and OPPORTUNITIES • Body Unreliable service utilities such as copypublic to go here Power Supply • Poor Road and transport networks resulting in delays in distribution of Diesel, Maintenance materials across the Country • Multiplicity of Taxes and Levies by Federal, State and Local Government Authorities and community interference • Extremely high security costs to sustain uninterrupted services across the Country • Vandalization of critical infrastructure, fibre optic cable, power supplies
...NO ELECTRICITY, NO WATER, NO ACCESS.
THANK YOU Body copy to go here
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Market Opportunities in Africa Henrietta Abraham
Director, Reach Consult
Opportunity Nigeria • Approach needed to succeed within the Body copy to go here Nigerian market •
Risks companies should be aware of
•
Top tips for building collaborations/partnerships
•
Where to get more information
Nigeria – some basic facts • Population: 180 million people - the largest Body copy to go here in Africa and 7th largest in the world • 62.5% of the population is under the age of 25 and the median age is 18.2. • 47.8% of the population live in urban areas. • The middle class consists of 25% of the population. •
High Yield Market
Approach needed to succeed • Market Research and Analysis Body copy to go here •
Understand the Market Dynamics
•
Understand the Culture
•
Form Partnerships
•
Legal and Regulatory Compliance
•
Good Advisers
Market Entry Risks • Due Diligence Body copy to go here •
Delays in Obtaining Approvals
•
Currency Risks
•
Regulatory Environment
•
Corruption
Building collaborations and partnerships – top tips copy to go here •Body Networking events •
Country visit/Trade Mission
•
UKTI/Chambers of Commerce
•
Relationship Development and Management
Where to get more information copy to go here •Body United Kingdom Trade and Industry Nigeria (UKTI) •
Nigeria British Chamber of Commerce (NBCC)
•
Nigeria High Commission – Trade Section
•
Specialist Service Companies
Contact details Body copy to go here
[email protected] T: +44(0) 1582 522311 M: +44 (0) 7727138017
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Market Opportunities in Africa Duncan Hoyland (chair)
Head of Inward Investment, UKTI South Africa
Davies Olugenga Adebayo
Chairman, Association of Licensed Telecoms Operators of Nigeria (Alton)
Henrietta Abraham
Director, Reach Consult
Keith Jones
Founder, Sw7
@Innovate2015
#Innovate2015
