Government must prioritise broadband in 2018 to lift Nigeria
The Chief Executive Officer of the Co-Creation Hub (ccHub), Bosun Tijani, speaks to ADEYEMI ADEPETUN on the need to intensify efforts on the national broadband plan, its role as enabler bringing in FDI into Nigeria among other issues in 2018. Excerpts:
CcHUB has remained a light for incubation hubs in Africa. As a stakeholder, what would you say are the biggest problems of start-ups?
I think a major challenge largely in Africa, not just for those in Nigeria is broadband. I think for us, the level of penetration is still quite important, because the more people have access to Internet, the better opportunities would be out there for startups to build businesses that people are able to consume. So, that’s one of the major headaches.
I think another challenge is knowledge; mainly technical knowledge. Truth is, there is still a huge disconnection between higher institutions of learning/research and the technology industry. In the technology ecosystem, our reality is that, as we continue to build, talent is needed to build compelling technology solutions and the availability of well-trained software engineers who can help add value to the startup business is not readily available. We also exist in a time where even the foreign market is interested in the huge talent that we have. So, there is opportunity for us to not only train people for local market but also for foreign demand. We are at the same point that India was some years ago, where India was literarily supplying technical talent to the whole world.
We have that opportunity to create value in that kind of scope right now in Africa, not just Nigeria leading, but Africa as well. So, we need to invest in training more software development and technical experts that will make technology side of the ecosystem thrive.
I think a major challenge largely in Africa, not just for those in Nigeria is broadband. I think for us, the level of penetration is still quite important, because the more people have access to Internet, the better opportunities would be out there for startups to build businesses that people are able to consume. So, that’s one of the major headaches.
I think another challenge is knowledge; mainly technical knowledge. Truth is, there is still a huge disconnection between higher institutions of learning/research and the technology industry. In the technology ecosystem, our reality is that, as we continue to build, talent is needed to build compelling technology solutions and the availability of well-trained software engineers who can help add value to the startup business is not readily available. We also exist in a time where even the foreign market is interested in the huge talent that we have. So, there is opportunity for us to not only train people for local market but also for foreign demand. We are at the same point that India was some years ago, where India was literarily supplying technical talent to the whole world.
We have that opportunity to create value in that kind of scope right now in Africa, not just Nigeria leading, but Africa as well. So, we need to invest in training more software development and technical experts that will make technology side of the ecosystem thrive.
The Nigerian ecosystem is an important ecosystem because we can build new businesses that can add value and build businesses and solutions that can enable other parts of the economy to grow. So, development of the right talent is also very important.
The third and the last one is strategic investment. Probably on the side of the private sector; as the private sector will also grow more opportunities. Also, from government, there is need to see the technology startup space as an incredible opportunity for Africa to create new wealth opportunities to lift people out of poverty. But unfortunately, this is a sector that requires patient capital; patient capital in the sense of how we see new opportunities, how we invest in infrastructure, and creating conducive environment for investments. Strategic investment is a very important factor, but with all that, there is a place for policy.
We need strong policies that would not only support us to be innovative today but policies that will support us to be competitive in three, four, five years to come. Competition will make companies from other regions easily come into our economies to create value and take that value out. So, if we want to retain that value, we also need to be thinking and implementing forward thinking policies.
The third and the last one is strategic investment. Probably on the side of the private sector; as the private sector will also grow more opportunities. Also, from government, there is need to see the technology startup space as an incredible opportunity for Africa to create new wealth opportunities to lift people out of poverty. But unfortunately, this is a sector that requires patient capital; patient capital in the sense of how we see new opportunities, how we invest in infrastructure, and creating conducive environment for investments. Strategic investment is a very important factor, but with all that, there is a place for policy.
We need strong policies that would not only support us to be innovative today but policies that will support us to be competitive in three, four, five years to come. Competition will make companies from other regions easily come into our economies to create value and take that value out. So, if we want to retain that value, we also need to be thinking and implementing forward thinking policies.
Will you consider broadband a crucial tool for national development, especially in developing economies?
Absolutely, I most certainly would. Broadband networks are vital for our economic growth. Ability to communicate is crucial to how wealth is being created. It is not an option but an essential tool for improvement of businesses because communication is needed for economic and country growth.
In this digitised era, broadband is an essential infrastructure for any and all economies. It is an enabler to accessing business and job opportunities, improving healthcare, education and government services, and facilitating social interactions, its importance cannot be overemphasised. Another way to look at it is to recognise that an efficient and effective broadband infrastructure is one solid way Nigerians in the diaspora can significantly contribute to nation building through fast and efficient communications across countries and continents, driving success in the economy. Beyond the Nigerians in the diaspora, we have a large pool of men and women with ideas, products and services for the development of the economy but who are restrained because the persons who need their products and services are unable to access them.
There is no better time than now for the Nigerian government across all levels to embrace the urgency in intensifying awareness and full penetration of broadband as this would enhance the nation’s yearly Gross Domestic Product (GDP) positively.
Absolutely, I most certainly would. Broadband networks are vital for our economic growth. Ability to communicate is crucial to how wealth is being created. It is not an option but an essential tool for improvement of businesses because communication is needed for economic and country growth.
In this digitised era, broadband is an essential infrastructure for any and all economies. It is an enabler to accessing business and job opportunities, improving healthcare, education and government services, and facilitating social interactions, its importance cannot be overemphasised. Another way to look at it is to recognise that an efficient and effective broadband infrastructure is one solid way Nigerians in the diaspora can significantly contribute to nation building through fast and efficient communications across countries and continents, driving success in the economy. Beyond the Nigerians in the diaspora, we have a large pool of men and women with ideas, products and services for the development of the economy but who are restrained because the persons who need their products and services are unable to access them.
There is no better time than now for the Nigerian government across all levels to embrace the urgency in intensifying awareness and full penetration of broadband as this would enhance the nation’s yearly Gross Domestic Product (GDP) positively.
How much FDI have Nigerian startups attracted, and has broadband enabled that?
Broadband is a major enabler. Without broadband, tech startup is almost impossible. It is the backbone upon which businesses are built. Penetration is on the rise which means local market is also beginning to be exciting as well. This excitement is what foreign investors see before they invest in the market. They just don’t just invest in startups or entrepreneurs; they also invest in the market. A startup ecosystem valuation that was done early this year and Nigeria was put at over $2billion that is the value of startup ecosystem in Nigeria which makes us the top in Africa. So, clearly, that has its own implication. The GSMA also did a review for last year 2016 and, it was estimated that African startups raised a record-breaking total of $366.8million in investment. With the top 10 destinations being Nigeria, South Africa, Kenya, Rwanda, Cote d’Ivoire, Tanzania, Egypt, Ghana, Senegal, Morocco, Tunisia and Uganda. This shows just how much money was raised by startups in the different markets in Africa. Nigeria is top in Africa taking in $109million, then South Africa at $96.8million, with Kenya and Rwanda following at $92.7million and $16million respectively.
So, it is an exciting time, we are rated among the best and definitely broadband is contributing to that but demand is always a major part of the innovation within the technology startup space. You can either create things that you push as technology push innovation to disrupt the market or you can also build products that are based on what the people want to see. Knowing the need of the market because people now have access to better quality internet and that is a part that we need to begin to look at. Financial technology is also instigating the development of a lot of exciting startups. We have seen startups like Flutterwave, Piggybank, Riby, and PayStack that have been built-in response to demand from market for better payment systems. So, the more investments, the better opportunity for local tech startups.
Broadband is a major enabler. Without broadband, tech startup is almost impossible. It is the backbone upon which businesses are built. Penetration is on the rise which means local market is also beginning to be exciting as well. This excitement is what foreign investors see before they invest in the market. They just don’t just invest in startups or entrepreneurs; they also invest in the market. A startup ecosystem valuation that was done early this year and Nigeria was put at over $2billion that is the value of startup ecosystem in Nigeria which makes us the top in Africa. So, clearly, that has its own implication. The GSMA also did a review for last year 2016 and, it was estimated that African startups raised a record-breaking total of $366.8million in investment. With the top 10 destinations being Nigeria, South Africa, Kenya, Rwanda, Cote d’Ivoire, Tanzania, Egypt, Ghana, Senegal, Morocco, Tunisia and Uganda. This shows just how much money was raised by startups in the different markets in Africa. Nigeria is top in Africa taking in $109million, then South Africa at $96.8million, with Kenya and Rwanda following at $92.7million and $16million respectively.
So, it is an exciting time, we are rated among the best and definitely broadband is contributing to that but demand is always a major part of the innovation within the technology startup space. You can either create things that you push as technology push innovation to disrupt the market or you can also build products that are based on what the people want to see. Knowing the need of the market because people now have access to better quality internet and that is a part that we need to begin to look at. Financial technology is also instigating the development of a lot of exciting startups. We have seen startups like Flutterwave, Piggybank, Riby, and PayStack that have been built-in response to demand from market for better payment systems. So, the more investments, the better opportunity for local tech startups.
How does broadband enable investment in human capital?
I will take that from a couple of angles. It is common knowledge how broadband and generally just the Internet gives us the opportunity to connect better. Like never before in history, information is more readily available both to people and to businesses as well. This means that people can learn better, people can then make better-informed decisions because they have access to information. Businesses also have more competitive edge because not only can they gather data, they can now analyse it to make informed decisions.
I will take that from a couple of angles. It is common knowledge how broadband and generally just the Internet gives us the opportunity to connect better. Like never before in history, information is more readily available both to people and to businesses as well. This means that people can learn better, people can then make better-informed decisions because they have access to information. Businesses also have more competitive edge because not only can they gather data, they can now analyse it to make informed decisions.
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