A story from Nigeria: Technology at the service of the most disadvantaged communities ?

Pharaoh :We launched our commercial operations in 2012 in light of the government’s issuance of legislation supporting the establishment of a “cashless” society, which aimed primarily at reducing dependence on financial transactions and providing more channels for electronic transactions. At the time, we proceeded from the belief that this would provide opportunities for technology companies like ours to bridge the gap between the stakeholders in the field of financial services and the users, specifically the merchants among them. Today, we are cooperating with a lot of players in this field, and we have now expanded our operations to Ghana, and we will soon reach other countries in West Africa to provide our services there. With regard to the challenges faced by any startup in sub-Saharan Africa, there are challenges common to all countries in the region, as well as challenges specific to some markets in particular. Challenges common to all markets include limited access to venture capital, a lack of infrastructure that drives up operating costs, and a regulatory environment (sometimes too weak, sometimes too strict). In Nigeria in particular, there are consumer behavioral challenges, which sometimes lead to lower product adoption. Access to capital is also a challenge as it is often limited, although we have seen some cases of investment in start-ups in sub-Saharan Africa over the past few years. One of the challenges is also the team building process, as attracting and retaining talent is an expensive process in light of the weak ability of startups to compete in this field. In Nigeria in particular, there are consumer behavioral challenges, which sometimes lead to lower product adoption. Access to capital is also a challenge as it is often limited, although we have seen some cases of investment in start-ups in sub-Saharan Africa over the past few years. One of the challenges is also the team building process, as attracting and retaining talent is an expensive process in light of the weak ability of startups to compete in this field. In Nigeria in particular, there are consumer behavioral challenges, which sometimes lead to lower product adoption. Access to capital is also a challenge as it is often limited, although we have seen some cases of investment in start-ups in sub-Saharan Africa over the past few years. One of the challenges is also the team building process, as attracting and retaining talent is an expensive process in light of the weak ability of startups to compete in this field.

Wamda: I previously worked as a product manager for two major software companies in New York, and was a banker before that. What prompted you to enter the field of e-commerce in Nigeria?

Pharaoh : I have always sought to solve problems by virtue of my nature, regardless of the situation. When I was in college and I was 18 years old, I started my first business, renting movies for the purpose of generating revenue. In light of this, and since I had a great passion for technology, I succeeded through technology and innovation in solving problems and overcoming the challenges faced by commercial projects. As for my move to work in the United States, it was a matter of achieving professional development at one stage of my life, but I was sure that there were many challenges in my country that I could address based on my background and experiences.  

Wamda: Which startup in Nigeria caught your interest the most, and why?

Pharaoh : Except for "Net Plus"? (smiles). I believe it is Wakanow.com for travel and tourism. It was launched about 10 years ago and has been very successful in using technology to enhance the travel and tourism sector. The company has also managed to expand outside Nigeria and launch operations in countries in West and East Africa.

Wamda: How do you think a foreign investor can be persuaded to invest in Nigeria?

Pharaoh :The Nigerian market is large, and it is large enough to generate huge ROI for investors. However, given the market challenges (high cost of doing business, unstable and strict regulatory environment, cultural biases that may lead to low product adoption, low technology penetration, etc.), achieving investors' goals can be a challenge. Therefore, investors may sometimes resort to considering investing in alternative markets and similar in terms of economy, before considering Nigeria ... [eg] Brazil, South Africa, Eastern Europe. However, I believe that startups that can solve problems in different markets and regions will be able to attract foreign investors before evaluating the work and solutions, and then launching outside the local market. For example, NetPlus, in collaboration with MasterCard, developed a solution to the challenges associated with payment options on delivery for e-commerce in Nigeria. But of course, as you can imagine, this solution could be exploited in a number of emerging markets and regions around the world. Currently, there are ongoing conversations with merchants in the GCC, Eastern Europe, and APAC [Asia Pacific], and we are very excited about the globalization of our solution. In doing so, potential investors evaluate the opportunity to invest in our business venture outside Nigeria.

Wamda: You hold an MBA from Wharton University in Pennsylvania. What lessons did you learn during your undergraduate studies that you are currently applying to your startup career? Did these lessons help you avoid mistakes?

Pharaon : One of the courses I took in my first year was “Management of People at Work,” and it has proven to be very useful for my career up to this point, and it will also be useful in the future. We've made many mistakes since we started, especially when making assumptions about consumer behavior and adopting our solutions. In my opinion, any successful startup should be willing to make such calculated assumptions, but at the same time be prepared to change quickly based on actual market data as it becomes available.

Wamda: How would you describe the startup scene in sub-Saharan Africa five years ago?

Pharaoh : The startup ecosystem today is filled with a lot of great talent seeking solutions to market challenges. We can say that Africans are trying to write their own stories and create opportunities for future generations. I believe that the success stories that will be written from Africa will make investors and leading institutions around the world look at the opportunities available in the African space, and will increase the possibilities of investment in our African market, which in turn will drive the next wave of projects in the region.