Konga Marketplace Makes Millionaire Merchants

Ugo Amadi

Konga Marketplace Makes Millionaire Merchants

Konga.com, Nigeria’s largest online shopping platform has been busy in the last six months, raising new Nigerian millionaire merchants through an innovative approach to its business in Nigeria. About 6 months ago, Konga debuted a sellers’ platform called the Konga Mall, allowing sellers from all over Nigeria create shops, display their products online and sell to customers via konga.com

Since then, thousands of sellers are actively selling on Konga Mall, and many of them already made millions on the platform which has traded hundreds of thousands of items. Merchandise listed on the platform range from fashion to a vast array of gadgets and electronic items, beauty products, home and kitchen wares and so on.

Commenting on the first six months  of Konga Mall, Tejumade Fola-Alade, coordinator for Konga’s Marketplace remarked that, “With the internet penetration in Nigeria today, Konga Mall allows retailers to have access to over 50 million Nigerians online. It has been a great couple of months on our Marketplace and a win-win situation for all parties.

 On the part of our customers, they now have access to a more robust assortment of thousands of additional items to satisfy various tastes and budget categories. On the other hand, the marketplace sellers also grow their business financials and reach; benefiting from the technical infrastructure Konga has built up over the years - enabling them to reach millions of loyal Konga customers all over Nigeria. The burden of logistics to the final consumer is completely born by Konga and it is very easy to sign up on the Konga website.

To further support and build capability for owners of Nigerian businesses Konga also runs the Konga Seller Academy - a learning & training platform for all its esteemed merchants and other interested business owners seeking to grow their knowledge on ecommerce. The Seller Academy is provides new, budding and experienced entrepreneurs with different learning opportunities that provide sellers, small & large business owners with business skills exposure via training programs, seminars and learning testimonials from successfully set up sellers.

And sellers on Konga are enjoying the ride! Blessing Olurin who owns a store called Little Angels praised Konga Mall saying, “I've enjoyed extremely huge patronage. There's no day without sales. I am always very happy for the repeat customers and particularly glad that customers receive their orders in record time”. 

Another customer, Seun Oloyede who runs Seolak Store expressed similar sentiments remarking that, “Within 100 days of joining the platform, we received and processed over 2,000 product orders on Konga Market Place”. As the news of the success of selling on the site spreads, the platform is seeing almost a thousand new sellers register on the site each week.

Konga’s CEO and Founder, Sim Shagaya explains the strategic reason the company decided to expand its operations with the Konga Mall platform. He said, “Konga’s mission is ‘To be the engine of Trade and Commerce in Africa’. We know that Commerce and business are key drivers of Nigeria’s Gross Domestic Product (GDP). If well harnessed, the use of ICT could even help bridge the unemployment gap in Nigeria.Konga is promoting entrepreneurship in Nigeria through this platform, as merchants can start a business with minimal investment. Entrepreneurs justhave to register on Konga,then we help showcase their merchandise on Konga Mall to nationwide visibility and distribution. This is a model that will prove very interesting for Africa in the long-term and will be a big part of e-commerce in Africa.”

U.S APPOINTS GE AFRICA CEO INTO PRESIDENT OBAMA’S ADVISORY COUNCIL

U.S APPOINTS GE AFRICA CEO INTO PRESIDENT OBAMA’S ADVISORY COUNCIL

Ugo Amadi

Correspondent, Energy,oil and gas

Jay Ireland, President and CEO of General Electric Africa (GE Africa) has been named as one of the 15 private sector leaders to President Obama’s Advisory Council on Doing Business in Africa.

The new appointees represent small, medium, and large companies from a variety of industry sectors. They will provide expert counsel on strengthening U.S partnerships with African countries and leverage opportunities for U.S. companies operating in Africa for the long term.

The appointment is contained in a letter addressed to the GE Africa Helmsman by the U.S Secretary of Commerce Penny Pritzker.

She said the appointment became necessary because Africa is home to six of the 10 fastest-growing economies in the world and that economic growth on the Continent will continue to drive demand for U.S. exports, which will ultimately help create jobs at home and provide valuable investment opportunities for U.S. businesses.

Responding to the appointment, Jay Ireland said the appointment reaffirms not only GE’s commitment to Africa but also the US government’s focus on strengthening its relationship with the continent.

Earlier this year, GE announced it would invest US$2 billion in facility development, skills training and sustainability initiatives across Africa by 2018.

 The announcement cements a century-long involvement with African economies. “GE is uniquely positioned to increase access, reliability and affordability of core infrastructure throughout the continent”, says Jay Ireland.

GE first started operating in Sub-Saharan Africa over 100 years ago. GE’s footprint in sub-Saharan Africa now consists of over 1800 employees, revenues of over $2.5 billion dollars (2013) and operations in 25 countries. GE’s main operations in Africa are in Nigeria, South Africa, Angola, Mozambique, Ghana and Kenya where the Africa Headquarters is located.

 

PIB: Untidy passage ll not benefit indigenous players

PIB: Untidy  passage 'll not benefit indigenous players

Legal Oil and Gas expert has warned that untidy passage of PIB  under the current fiscal terms will not be beneficial to Indigenous players ,stressing that it Will prevent development of small stranded fields and Stunt the availability of domestic gas particularly for power generation.

Ms Aderemi Ogunbanjo  of Odujinrin  and Adefulu   gave this warning while speaking on the petroleum industry bill and its impact on indigenous producers at the Energy Institute Producers forum in Lagos.

According to her commitment to a clear timetable with milestones is critical for the development of the industry  and it is better we get it right now than being in a hurry.

She noted that the PIB was made to create a conducive business environment for petroleum operations, optimise domestic gas supply and to establish a progressive fiscal framework that encourages further investment in the petroleum industry while optimising revenues accruing to the Government

Other objectives are to create efficient and effective regulatory agencies; and  to promote transparency and openness in the administration of Nigeria’s petroleum resources .

She maintained that the objectives setting up the PIB must be religiously kept to ensure  we get it right.

This is coming after  the opposing interests inherent  have failed to come to a common ground, and that explains why the ambitious bill, which holds the key to the transformation of the oil and gas industry, and indeed, the Nigerian economy has not seen the light of the day.

Actually ,The Petroleum Industry Bill (PIB) rests delicately on three contending legs: the Federal Government, through the Ministry of Petroleum Resources; the National Assembly and the international oil companies operating in Nigeria. This is a tribod stand on which the PIB is standing.
In fact, the Seventh National Assembly will be heading for a record if it succeeds in passing the bill, which had eluded its predecessors.

Senate President, David Mark, it was, who last month, rekindled the hope of early passage of the PIB when he put the time tag of "very soon".
However, it is yet to be seen how the contending issues in the tripod could be resolved very soon.
Some Northern elements and other interest groups have picked holes in the PIB in its present form.
Governors Dr. Mu'azu Babangida Aliyu and Alhaji Ramalan Yero of Niger State and Kaduna State, respectively, have taken a swipe on the PIB on its provision of 10 per cent host community fund.
Aliyu contends that allocating a fund to host communities was synonymous with creating a fourth tier of government.
He argues that the bill failed to state what actually constitutes a host community or how funds would be conveyed to such communities, adding that with the existence of Niger Delta Development Commission, NDDC, and the 13 per cent derivation, creating host community fund is an attempt to extend such opportunities through the National Assembly. To Yero, he says his people are opposed to the provision.
However, NEITI, the Nigeria Extractive Industry Transparency International (NEITI), is of the opinion that if indeed regulation and administration of the oil industry must be guaranteed, it is imperative to reduce the powers of the Minister of Petroleum Resources and ensure the creation of strong autonomous institutions that would promote effective governance and control in the management of Nigeria's petroleum resources.
Perhaps, the hardest knock comes from the international oil companies (IOCs) under the aegis of Oil Producers Trade Section (OPTS), which is a conglomerate of 18 international, and indigenous oil companies.
To them, although the PIB possesses a unique opportunity to resolve the numerous challenges confronting the oil sector, it only sets out to aggravate it and simultaneously reduce investment potential in the oil sector.
They cited issues of illegal bunkering and sabotage, constant security threats to oil sites and employees, shortfalls in Joint Venture funding, lengthy delays in project among others, which they claim the bill has not addressed.
Resolving these diverse interests, which would bring about speedy passage of the PIB means, all the affected parties should come to the round table.
Although, the Senate says, Nigeria is simply adopting what is obtainable in other countries with similar circumstances, the legislators may need to bend backward to allay the fears of the oil firms.
The oil producing communities may want to exploit the loophole in the constitution which stipulates a minimum of 13 per cent derivation, to press for an increase which is more feasible to achieve, than the request for additional 10 per cent to the host community fund.
On their part, the IOCs should appreciate the efforts the Federal Government has been making in confronting, in recent times, the scourge of illegal bunkering, sabotage, pipeline vandalism and security threats.
There is the need to whittle down the powers of the Petroleum Minister, to accord with their counterparts in other climes, so as to accommodate the views of those who see the present arrangement as inconsistent with the aspiration of developing a healthy and vibrant oil and gas sector in the country.

It could be recalled that The reforms started in April 2000 with the establishment of the Oil and Gas Sector Reform Implementation Committee (OGIC) and the OGIC’s mandate was to harmonise the 16 oil and gas legislations, and produce a comprehensive industry legislation

After various drafts down the line, OGIC presented the PIB to the National Assembly in December 2008 ,The Bill survived two administrations (President Olusegun Obasanjo’s administration and President Umar Yar Adua’s administration) and various redrafts

In January 2012, under President Goodluck Jonathan’s administration, a Special PIB Task Force was set up and another version of the PIB was presented to the National Assembly on 16 July 2012

Local content policy:A boosts to Nigeria economy

Local content policy:A boosts  to Nigeria economy

Ugo Amadi

Energy experts  has lauded the local content policy revealing that the  Emergence of indigenous oil companies in the upstream sector of the oil and gas has  created more investment opportunities to the Nigerian economy

The experts who took turn to make their presentations at  Energy Institute (EI)Nigeria ),  organized  Nigerian Producers Forum In collaboration with UK Trade and Investment (UKTI) and supported by the Department of Petroleum Resources (DPR)  spoke on  the theme “Growing Nigeria’s Indigenous Producers: Future Investment in Oil & Gas”

Speaking  on the topic Upstream Oil Production –Indigenous Operators Impact on the Domestic Growth of the Economy, Mr Vincent Nwani, Director of Research and Advocacy noted that Nigerian companies in the oil and gas upstream sector are on the rise, taking on prodigious challenges and overcoming them.

According to him For more than five decades , the IOCs(Royal Dutch Shell Plc,

ExxonMobil Corporation, Chevron Corporation, Total SA and Eni SpA) pumped about 97 percent of Nigeria’s oil output.

Stressing  that before now  the upstream have been the exclusive preserve of foreign companies, who dominated the upstream areas for long .

He emphasized that the local content policy  made  way for indigenous Nigerian companies ,thus Nigerian companies are  becoming more assertive, more ambitious and more resilient.

He said that what happened in the oil and gas sector , is now taking toll in the power sector which has seen indigenous companies in partnerships with foreign companies.

Nwani said  that more than that, the opportunities the local content law has opened Nigerian companies to are unparalleled  opportunities and that Indigenous Operators Can only Get Better

Over the last few years, company like Shell has sold its interest in four oil blocks to indigenous companies.Many Nigerian companies have become owners of upstream assets and this has in turn led to the engagement of indigenous contractors.

Nigerian companies are now handling lucrative pipeline construction projects.Since IOCs started divesting from some oil blocks (mostly onshore) and marginal fields, Nigerian companies have put on impressive abilities to raise capital and form alliances with foreign technical partners in the acquisition of these oil assets

However this had had great Impact of Domestic Impact on the Economy as new

Investment opportunities are pumping up, Wealth and Job Creation are increasing day by day

As a matter of fact Over $200 billion worth of procurements and nearly $10 billion worth of research and development (R&D) used to be sourced from North America and Technical services valued at nearly $80 billion and $39 billion worth of engineering works used to be done in Europe are being handled by indigenous companies,

In fact Thousands of  jobs in manufacturing, engineering, sciences and technical services are being created, Rapid knowledge diffusion (technology transfer) is on going and Exchange Rate is getting  Stable ,he noted.

He prised the hope and confidence boost

Of the Emerging Domestic Players like SEPLAT,South Atlantic Petroleum (SAPETRO),AfrenPLC,Midwestern Oil and Gas Company,NecondeEnergy Limited,Sahara Group,Shoreline Natural Resources,TaleverasGroup,Oando,Spectra Energy Services Limited (SESL) and

.Other Operators.

He concluded that Divestment by oil majors has given indigenous and small players the opportunity to take charge of  the nation’s oil sector. These divestments represent the single largest opportunity for indigenous Nigerian firms with the requisite expertise, partnerships and capital to ascend into the league of major upstream players.

If indigenous operators overcome the above policy and operational difficulties, they will become increasingly instrumental to Nigeria meeting its output target of 3-4million barrels a day by 2020.

Speaking on pioneering Marginal field production in Nigeria  the Managing Director of  Platform Petroleum,  Mr Emmanuel O. Konyebagu  shared  their experience, stressing  that it was not pretty easy but they were able to win their first marginal field with a local partner Nucros.

According to him, they have built a gas processing plant, have a sister company seplat and other things because of their excellent and professional way of doing things.

He noted that their staff  are highly trained to compete on any international standard and they are a value creating company, thus it pays their royalties and tax to the government and the community.

He noted that  government gives license to companies while host communities gives the power to operate and to overcome the challenges posed by the host communities , they adopted a win- win situation, whereby they have built roads, bridges, hospital and dedicated funds to help host communities.

He noted that today Platform is doing 2000bpd and hope to increase in the future.

He noted the following as challenges facing them, ability to access good funding, credit facility, ,community challenges and multiple taxation from the government.

In her own remarks the Trade Specialist for Oil and Gas – UK Trade & Investment, Sue Whitbread expressed hope on the indigenous oil companies in  Nigeria.

She informed that local companies can explore UK export finance which is available for all the countries where they operate.

She promised that UK Trade  and Investment is ever ready to guarantee equipment supply to veritable indigenous oil companies. Stressing that UK is ready to fund a lot of business in Nigeria because Nigeria is a good place for doing business