The Era of Tech Economy in Nigeria and the Contribution of Kusnap

The Era of Tech Economy in Nigeria and the Contribution of Kusnap

The Tech economy and the digital economy are used interchangeably to describe different aspects of the technology sector beyond simple internet presence and functionality. It is also known as the new economy. Since the emergence of tech in the 90s, we have witnessed the expansion of many new and exciting subsectors in tech such as artificial intelligence. Currently, companies involved in tech, particularly Alphabet, Amazon, Facebook, Microsoft, and Apple, have overtaken most companies in the world in terms of market cap. Even the companies that long existed are second class to these new tech companies. In Africa, the tech landscape is gaining significant traction, attracting thousands of overseas investors, which is why Africa is seen as the future of the world, future of the future, and largest economy by 2050.

It is a common belief that when opportunity meets preparation, success is inevitable; which is evident in the plethora of tech opportunities kissing Africa in the recent time. Africa is ready! On one hand, Nigeria drives the door through which these opportunities visit Africa. More than 30% of these tech companies are resident in Nigeria, and www.kusnap.com (Kusnap) is one of the leading tech  platforms in Nigeria, giving visibility to businesses under a fair level  playing ground. Thousands of businesses are taking good advantage of the opportunities that Kusnap provides businesses.

Without any doubt, the popularity of these new tech companies in Africa and globally is driven by the internet and communication technology, which has metamorphosed into economic digitization. Recently in Nigeria, the minister of Communications and Digital Economy, Dr. Ibrahim Pantami, said that the consistently positive impact of the ICT sector on the Nigerian economy is based on the development and implementation of relevant policies.

The Minister also noted that the Tech sector index rose by 6.47% in Q1 2021, making it the fastest-growing sector of the Nigerian economy. The introduction of Global Systems for Mobile Communications in Nigeria in August 2001 laid a solid foundation for Nigeria's Tech economy. This took place a few months after the establishment of the National Information Technology Development Agency. Almost 20 years later, over 100 million people have access to mobile telephones; and internet penetration rose to almost 50%. According to data published by Statista Research Department on August 23, 2021, the number of active internet users in Nigeria alone, as of January 2021, was pegged at 104 million which represents almost half of Nigeria's total population.

Mobile Phones and internet access coupled with urbanization and population growth have created an environment for technology products and services in Nigeria, which is why at Kusnap, using mobile phones only is enough to close business deals and go home smiling.

The Nigerian tech sector has benefited entrepreneurs coming into the country to set up companies. In 2012, two Harvard Business School graduates joined forces together to establish an e-commerce site known as Jumia. Jumia is one of the first tech start-ups in the country. Since then, the country has witnessed a consistent increase in the establishment of tech firms in various sectors such as agriculture, energy, health, banking, transportation, logistics, and finance. Many tech companies have registered their presence over the past few years and have attracted international attention and funding. For example, Grey areas in the public education system have provided an opportunity for education (“ed-tech”) start-ups that try to simplify the process of teaching and make learning more accessible. Financial technology (fintech) start-ups like FairMoney are seeking to engage segments of the population that cannot access traditional financial services. Similarly, Kusnap has often found creative solutions to fill gaps left by its competitors in the e-commerce arm of the tech economy. This includes the presence of Artificial Intelligence (AI) to disclose the location of parties transacting business over its marketplace.

Every step taken towards technological advancement in the country is intended to enhance the general wellbeing of the people. A cross-border survey conducted in 2016 to ascertain the extent of online shopping across 26 countries revealed that Amazon, eBay, and Alibaba accounted for 65% of all the purchases under global cross-border. In Nigeria, Kusnap is one of the major players with a solid plan on the way to expanding across Africa. As earlier mentioned, Nigeria is the destination of technology in Africa and has surpassed South Africa to emerge a commercial hub with 55 active tech firms raising a total of US$ 94.9 million, while South Africa recorded US$60.0 million with 59 start-ups. Nigeria also has the largest number of telecommunications subscribers accounting for a teledensity figure of almost 90%.

 

This newfound industry has opened up new opportunities for Nigeria in the area of employment and entrepreneurship. In the agricultural sector, the challenges such as logistic support, training, market linkages, or access to finance, earlier faced by small-scale farmers are gradually gaining attention and tech solutions are popping up to address the challenges. Tech firms such as Thrive Agric and Farmcrowdy are doing great jobs in this regard. In total, these firms employed over 35% of the Nigerian labour force.

Interestingly, out of the #40T (forty trillion naira) generated as GDP in Q1, 2021, the ICT sector alone contributed N4 trillion. Statistics recently released by the National Bureau of Statistics showed that the tech sector contributed about 9.91% to the total GDP in Q1 2021. Even when this figure was said to be lower than the 10.31% captured in Q1 of 2020 and 10.58% in the preceding quarter, the sector still ranks higher in comparison to the oil sector which contributed 9.25%.

As addition to the Nigerian tech sector, Kusnap connects almost all the sectors of the economy in the sense that the players within different sectors of the economy could reach their potential target customers or final consumers via Kusnap, which has bridged the gap between buyers and sellers. This opportunity is open to many whose interest is to grow their businesses and probably become financially free to in turn, contribute to the economic growth of the country. It is expected that with the advent of technology and with Kusnap in place in Nigeria, the poverty rate should reduce to a bearable minimum as people have become more aware of their environment and can assess relevant information easily.

The start-up series is regularly brought to you by Kusnap Africa Limited. For more information about the Kusnap brand, visit https://www.kusnap.com/; and for the Kusnap Entrepreneurial Institute, visit https://blog.kusnap.com/. 

Follow Kusnap on FacebookInstagramTwitter, and LinkedIn. 

  

Snap-to-sell, chat-to-buy!

 

Views: 8

Comment

You need to be a member of Vanguard Online Community to add comments!

Join Vanguard Online Community

Forum Categories

© 2022   Created by Vanguard Media Ltd.   Powered by

Badges  |  Report an Issue  |  Terms of Service