NOGTech Hackathon 2020: Experts speak on realities of doing business and prospects of building a tech startup in Nigeria

Building a startup in Nigeria and Africa generally could be quite a challenge. In 2019, out of 190 countries, Nigeria ranked 131st in the World Bank’s Ease of Doing Business Report while only eight Africa countries are within the first 100. This buttresses the fact that the environmental, economical, governmental and many other factors are responsible for the growth or death of a business in the country. 

At the NOGTECH Hackathon Bootcamp closing ceremony, Francisca Kanayo Chiedu, the Hackathon & Incubation Programme’s Director, engaged seasoned speakers, policymakers, entrepreneurs and stakeholders in an intensive panel session themed “Challenges and prospects of building a technology startup from Nigeria. ” 

During the one-hour long session, Francisca navigated the conversations to draw out real insights from doing businesses in Nigeria and burrowed deeply into highlighting impending elements that could create an existential threat to the boon of emerging businesses playing in the Nigerian and African space.  Her engagement and discussions with the speakers steered from their drive despite odds, working strategies, to navigating competitive terrains, finding the market-product fit, dealing with investors and clients’ expectations, tackling with rigorous laws and regulations and thriving amidst odds. 

Industry leaders who laid bare their practical experiences during the panel session were Iyinoluwa Aboyeji, co-founder and general partner Future Africa; Fatumata Soukouna Coker, founder at YGroup Holdings; Adetayo Bamiduro, co-founder MAX.ng and Mrs Eyioma Anaba, Regional Head, Consumer Marketing Interswitch.

Let’s take a look at some of the key realities of building a business in Nigeria and Africa at large as shared by the knowledgeable panellists and lessons extracted from the session.

Human resource is a major problem 

While speaking on the topic “Challenges and prospects of building a technology startup from Nigeria”, one of the panellists, Fatumata Soukouna Coker, the chairman of Afrinvest noted that that human resource is a major change for business owners. 

“From my perspective as a business owner, our challenge is basically human resource. Many people here have done a fantastic job coming up with brilliant ideas, probably even starting without help from anybody besides friends and family. What’s going to be the most difficult task is to find the right team of people to take that idea to a maturity state,” she said. 

Furthermore, she opined that this is a problem because there’s a fault in the educational system on the continent. And in sessions bid to solve this, Africa needs to focus on the people, “create skilful, diligent and integrity-driven people so we create sustainable industries and sectors” and they will also drive the business, Fatumata concluded. 

Moving on to the next lesson learned on Francisca’s probe about seeking investment when building a business and the money factor determining success. 

Build first before seeking investment 

Over time, conversations around how startup founders chase after funding even before the business have even reached any milestone. Experts put it that this sometimes scares away prospective investors. 

However, Iyinoluwa Aboyeji, co-founder and general partner Future Africa advised that rather than seek funding for ideas, business owners need to build the business first if they want investments. 

“Focus on more businesses, less funding for ideas — make the sacrifice and be resourceful. It proves that you have a business when I can see you putting your own resources to work, working on your business and leveraging social, financial and human capital around you,” Iyinoluwa advised. 

Next on the list is expanding the business to stand the test of time. 

Develop the business ahead of future challenges 

It’s almost inevitable that one wouldn’t be faced with challenges in a phase of one’s life and this goes for business owners as well — it could be lack of investment, incapable hands to drive the vision, government regulations and policies, amongst others. 

“As the business evolves, you’re going to be faced with various challenges at different stages of your business and if you don’t ground yourself at the very first stage, with the little money that you have, you might miss it. You might not develop the muscle to face the different levels of challenges that would come,” Mrs Eyioma Anaba said. 

He recommends that startup founders should build the business themselves, go through the challenges because those things build the muscles. 

Asides building the business to stand in the face of challenges, engaging the regulators at a close range is very important. 

Amid policies and regulations, engage with the government 

Government regulations and policies are almost inescapable in any sector. Early in the year, the Lagos State government released a directive that banned e-hailing commercial motorcycles and tricycles from operating on the major roads and highways in the state. This affected the likes of Gokada, MAX.ng, ORide and many more. 

During the panel session, Adetayo Bamiduro, the co-founder of MAX.ng had a lot to say considering that the industry the company plays is highly regulated by the government. 

Speaking on government regulations and policies, he noted that business owners need to realise that in this part of the world, no matter how innovative they are, especially if they play in a sector where regulations can take out the business in a day, there’s a need to engage with the government closely. 

“You have to engage with them, and it is very interesting navigating regulation but steering relationships is extremely different from running your own company. You can’t be distant from the government and regulators, you can curse at them in your living room, it’s fine. But once you’re out there, you have to engage with them very closely,” Adetayo rounded off. 

Undoubtedly, the African continent is rich with young brilliant and innovative minds who despite the government policies as well as harsh economic conditions keep evolving and introducing solutions to new problems. But for how long will they keep the fire burning? 

Featured image: L-R: Adetayo Bamiduro, co-founder MAX.ng; Fatumata Soukouna Coker, founder at YGroup Holdings; Francisca Kanayo Chiedu, NOGTECH’s Incubation Programmes Director; Iyinoluwa Aboyeji, co-founder and general partner Future Africa and Mrs Eyioma Anaba, Regional Head, Consumer Marketing Interswitch.