Dangote Tomato signs deal with farmers in Sokoto, Gombe

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Dangote Tomato signs deal with farmers in Sokoto, Gombe

The Dangote Tomato Processing Company, Kadawa, Kano state has concluded arrangement to purchase fresh tomatoes from farmers in Gombe and Sokoto States.

The company had already signed an agreement with Tomato Growers Association for the procurement of the commodity from the two states.

The Managing Director of the company, Alhaji Abdulkarim Kaita, said on Tuesday that the company found it necessary to go into the agreement following the non-availability of the commodity in Kano and other neighbouring states that produced it in large commercial quantities.

He noted that the CBN anchor borrower programme had adversely affected tomato the production this irrigation season, especially in Kano State where many farmers shifted to wheat and rice production.

He said, “The wheat and rice loans given to farmers this year have affected tomato production in the state.

“This is the reason why the product is still costly as a big basket which was between N400 and N500 last year, is now N3, 000 in the market.

“So we cannot buy it at the present price.

“When the price was between N400 and N500, we used to buy from farmers at N1, 200 per basket.”

He said that the company would continue to monitor the situation until it was satisfied that the commodity was available to enable the factory resume production.

“If we resume production now, the commodity will be scarce and once it is scarce, the price will go up. This is what we don’t want for now,’’ he said.

On why the company did not give farmers loan to produce the commodity as it did in the past, Kaita said that out of the 100 farmers that benefited from the loan, only 20 of them were able to repay the facility.

He said, “So we cannot give them another loan now since most of them have yet to repay the earlier loan they enjoyed.”

He said that as soon as the commodity was available for processing, the factory would resume normal production.

He said, “We are ready to resume production because all our machines are in good condition and ready for operation.”

(punchng)

How Telecom Investments Is Driving Nigeria’s e-Commerce Growth

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How Telecom Investments Is Driving Nigeria’s e-Commerce Growth

Nigeria’s e-commerce sector is escalating with thousands of websites offering consumers alternative choices. Instead of walking  down to mammy markets, shops, supermarket or shopping malls, consumers can in the comfort of their rooms use laptops or mobile handsets and make purchases from e-commerce sites with the goods delivered at their homes.

The surge in e-commerce in the past five years has made Nigerians to start making flight bookings, payment of utility bills, online shopping and other business transactions on the web. Today, online retailers are taking over from the traditional malls people are accustomed to.

Electronic retailers (e-retailers) tend to create a shopping experience for customers without having to visit the mall physically. Barely two years since indigenous online retailing started in Nigeria, names like Jumia, Konga, GTBank’s SME Marketplace Gloo, Jiji, Rytedeals, Mall for Africa and hundreds of others are gathering fame for their online retail efforts.

Helen Anatogu, chief executive officer of iDEA Hub said the digital economy in Nigeria continues to thrive mainly attributable to: the huge youth population that is creating and demanding online content, emergence of e-commerce platforms that facilitate the procurement of services, demand for data services over voice service due to the increasing lifestyle effect of global social media platforms like

She said , “Facebook, Twitter, WhatsApp, Instagram, Snapchat, etc., the Cashless policy by the Central Bank of Nigeria (CBN) as well as promotion of financial inclusion strategy by CBN and Bankers Committee, especially licensing of mobile money operators” has propelled the rise of e-commerce in the country.

According to research, globally, retail trade accounts for 27 per cent of the world’s Gross Domestic Product (GDP. The retail sector also employs 17 per cent of the global workforce, which is about 800 million people. In the United States alone, one in every 10 people works in the retail sector.

With over 80 million Nigerians living in metropolitan areas, creating huge opportunities for formal retail to thrive, e-commerce has become a major driver of economic growth, job creation and wealth generation globally while in Nigeria, it is creating great opportunities for existing and new investors to take advantage of.

Digital technology is driving the internet market place. Virtual transaction means that businesses can be transacted from the remote corners of our homes enabled by the internet. The growing number of smartphones and other advanced devices is increasing the use of data-intensive applications, particularly video streaming, on mobile networks. This is resulting in an explosion of data traffic, with volumes forecast to grow at a CAGR of 49 per cent over the next five years.

According to GSM Association, the mobile industry continues to drive innovation across the world, with its impact felt in both developed and developing markets. Mobile has allowed individuals, companies and governments to innovate in new and unexpected ways, with consumers across the globe showing a ready appetite to adopt new technologies.

In Nigeria, affordable smartphones running on mobile broadband networks are bringing many individuals their first computing devices and first experience of internet access. This has encouraged the development of new services, applications and use cases that have rarely been seen in more developed western markets.

According to telecom experts, mobile is playing a central role in delivering digital and financial inclusion. The Nigerian Communications Commission (NCC) recently said the telecom operators have brought in about $68 billion direct investment into the industry, with much of the investments coming from mobile network operators (MNOs).

Just last week, executive chairman, MTN Nigeria, Mr. Phutuma Nhleko, disclosed that MTN Nigeria has invested $16 billion into its Nigerian operation. This investment is key in spurring Nigeria’s e-commerce explosion. For instance, MTN Nigeria through its investment in infrastructure has enhanced digital inclusion in Nigeria.

Nigeria’s largest mobile network is investing in infrastructure rollouts, securing telecoms and cable broadcasting spectrum licences in Nigeria. It is also diversifying into digital financial services to restore investors’ confidence as well as eyeing new revenue stream for expansion, with plan to list part of MTN Nigeria shares on the Nigerian Stock Exchange (NSE).

MTN Nigeria is the largest music distributor in Africa and has investments in mobile money and Africa Internet Holdings (AIG). Last year, it rebranded AIG companies into Jumia’s ecosystem. Kaymu is now Jumia Market, Jovago, Hellofood, Vendito, Lamudi, Everjobs, Carmudi and AIGX are now known as Jumia Market, Jumia Travel, Jumia Foods, Jumia Deals, Jumia House, Jumia Jobs, Jumia Card and Jumia Services respectively.

MTN is aiming to transform into a financial technology (FinTech) operator through mobile money, e-insurance, e-commerce, cloud business, web services and last mile banking. It is also working on tapping into Nigeria’s $21 billion Diaspora remittance market. MTN has embarked on a process of housing new revenue streams, particularly digital services, outside the core business.

This will allow for more agility and greater flexibility to accelerate growth in these areas. New revenue streams are expected to increase their contribution to revenue over the next 12-18 months. In Nigeria, the mobile operator has acquired pay TV broadcasting licence, 4G LTE and digital financial services.

Tolu Akinluyi, communications, media and technology executive at Accenture Nigeria said,  “The Nigerian government must create an enabling environment to foster sustainable growth and development of the telecom sector. It must encourage the industry to promote, build, incubate and partner in the development and realization of IT innovation hubs.”

It is pertinent to emphasize the need for progressive regulatory environment that acknowledges the importance of ICT as a major contributor to GDP and a major alternative to oil revenue as well as need for proactive policy to fast tract the explosion of e-commerce and innovation in the country.

Cross-border E-commerce Considered a Growth Rocket for Sub Saharan Africa Retailers

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Cross-border E-commerce Considered a Growth Rocket for Sub Saharan Africa Retailers

Highlights

  • Cross-border online retail predicted to grow at twice the rate of domestic e-commerce (CAGR: 25%) until 2020
  • Retailers can grow 60% faster with a premium service offering

DHL Express, the world’s leading international express services provider, has published research highlighting the significant growth opportunity for retailers and manufacturers with an international online product offering. The report – The 21st Century Spice Trade: A Guide to the Cross-Border E-Commerce Opportunity – looks in detail at the markets and products that offer the highest growth potential, the motivations and preferences of customers making international online purchases and the success factors for online retailers that wish to expand overseas. It focuses in particular on the opportunity for premium products and service offerings, with higher basket values accounting for a significantly higher proportion of orders in cross-border transactions.

The report reveals that cross-border e-commerce offers aggregate growth rates not available in most other retail markets: cross-border retail volumes are predicted to increase at an annual average rate of 25% between 2015 and 2020 (from USD 300 Billion to USD 900 Billion) – twice the pace of domestic e-commerce growth. Online retailers are also boosting sales by 10-15% on average simply by extending their offering to international customers. An additional boost comes from including a premium service offering: retailers and manufacturers that incorporated a faster shipping option into their online stores grew 1.6 times faster on average than other players.

“Contrary to what many retailers think, cross-border shipping is actually simple and retailers in Sub Saharan Africa are perfectly positioned to take advantage of international opportunities. ‘Brand Africa’ is something that has increased exponentially in popularity in recent years and it’s time for retailers to remove the boundaries and open up their business to seamless international trade. Often, retailers choose not to promote their businesses internationally, and worse yet, will turn down international sales interests due to the misconception that it’s too difficult to manage and deliver,” says Hennie Heymans, CEO for DHL Express Sub Saharan Africa.

“Globally, our experience is that virtually every product category has the potential to upgrade to become premium, both by developing higher quality luxury editions and by offering superior levels of service quality to meet the demands of less price-sensitive customers. The opportunity to ‘go global’ and ‘go premium’ is available to retailers in all markets and our global door-to-door time definite network is well-positioned to support retailers looking to develop a premium service offering or directly reach new international markets without  the need to  invest in distribution or warehousing. In Sub Saharan Africa, the opportunity for Intra Africa trade should not be ignored. ‘Going global’ does not only mean trading outside of the African continent, Africa is home to one of the world’s fastest growing middle class, with an appetite for quality products and services. There are also a number of trade blocs in place to support Intra Africa trade growth and retailers should take advantage of this captive market.”

The report is based primarily on research and in-depth interviews conducted by a leading global management consultancy, as well as more than 1,800 responses to a proprietary exporter survey of retailers and manufacturers in six countries. It casts a light on the evolving face of e-commerce, with both supply and demand becoming more sophisticated Manufacturers are increasingly taking advantage of e-commerce to move to direct retail models – bypassing the ‘middleman’ and offering their products online to the end customer – and expect to grow 30% faster in cross-border e-commerce than other retailer groups. Customers in many markets are also becoming more discerning, citing product availability and trust, as well as attractive offers, as the motivating factors for shopping with overseas online retailers.

The main challenges highlighted by consumers to cross-border purchases relate to logistics, trust, price and customer experience. At the same time, online retailers can take a number of relatively easy steps to identify, cultivate and service demand from abroad. The report noted that the e-commerce trend has given birth to a new eco-system of facilitators and off-the-shelf solutions (such as payment providers and programs that localize a website’s check-out experience for the visitor), helping retailers to adapt their offering to the digital world and to transact with customers in foreign markets. Global logistics partners can provide support in identifying the right trade-off between centralized and local warehousing and fulfillment, while fast, reliable and flexible delivery options can be an important tool in turning speculative interest into long-term customer loyalty.

(Proshare)

Facebook’s Chief Product Officer in Nigeria To Speak at Social Media Week & Meet Local Entrepreneurs

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Facebook’s Chief Product Officer in Nigeria To Speak at Social Media Week & Meet Local Entrepreneurs

Chris Cox, Chief Product Officer at Facebook, is in Nigeria today, to speak at Social Media Week in Lagos about the future of media, and to meet with Nigerian entrepreneurs and content creators.

Nigeria is the first stop on a week-long trip to West Africa where Chris will visit Nigeria, Ghana and Senegal to learn about the challenges and opportunities people in the region face so that Facebook can better serve the region’s content creators, entrepreneurs and developers.

Inspiration for content creators at Social Media Week
During his talk at Social Media Week — the region’s premier new media and social media conference — Cox highlighted Nigeria’s status as a hub for innovation and creativity because of its fast-growing mobile technology sector and its vibrant film and music industries. He focused on how the world is moving to digital video, with formats such as virtual reality, live video broadcast and 360 video giving people new ways to tell their stories.

“Stories matter, whether it’s the stories of our lives or the story of Africa’s growth and ascendance” says Cox. “We want Nigeria’s storytellers — the musicians, the filmmakers, the novelists — to take their stories to the rest of the world. The explosion in mobile video and live video, gives people a new way to share their story and perspective with the globe – and this is happening on Facebook.”

Cox talked about how creators like Femi Kuti are using Facebook to bring fans into their lives and extend their presence beyond the stage and recorded media. He also discussed how innovators like Afrinolly – the creative hub where technology meets art — are using virtual reality and 360-degree video to create exciting and compelling new storytelling formats.

Building on Mark Zuckerberg’s 2016 visit
Chris Cox is the most senior Facebook executive to visit Nigeria since Mark Zuckerberg visited Lagos in September 2016. He arrived in Nigeria last night (26 February) and attended New Afrika Shrine to see Femi Kuti, one of his musical heroes. Femi’s hour long set was streamed via Facebook live to the world and Chris was honoured to be invited to play keyboards for one song.

“I’m looking forward to hearing more about how Nigerian creatives, developers and entrepreneurs are using mobile technology, video and Facebook platforms to create inspiring applications and services for their customers and communities,” says Cox. “The level of innovation we see in this market is amazing. As Africa’s most populous country, Nigeria is an important market for us.”

Facebook accepts local currency payments in Nigeria
When Mark Zuckerberg visited Nigeria, one of the requests he heard was for businesses to be able to pay for advertising and other services in Naira. In response, Facebook has started accepting locally issued Nigerian Naira cards from new advertisers for payments on its ads platform.

“With 8.6 million people in Nigeria using Facebook on mobile every day, Facebook is a great place for businesses to reach their customers” says Cox. “We’re listening to our community of partners, developers, advertisers and content creators to understand what we can build to best serve their needs.”

Starting on 8 March, Facebook will kick off Boost Your Business, a series of free training sessions designed to help thousands of Nigerian small business owners understand how to leverage digital platforms for growth. The sessions will be facilitated by trainers led by She Leads Africa in key cities including Lagos, Kaduna, Abuja, Port Harcourt and Ibadan.

(Proshare)

Here are 12 Malaysian Startups That Recently Got Funded

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Here are 12 Malaysian Startups That Recently Got Funded

A quick list of funded startups in Malaysia straight from BHIVE database.

The e27 database is a trove of information and we’d like to share what we find there with you. This week, we took a peek at the database and came up with this list of startups in Malaysia that received at least US$1M in their most recent round beginning January 2016. 

Round: Seed

Dah Makan | US$1.3M – A full-stack food delivery provider with a rotating menu of healthy international and local dishes. Funded by East Ventures, Asia Venture Group, and Grupara.

BookDoc | US$2M – An online platform connecting users with healthcare providers. Investor undisclosed.

RecomN | US$1M – A service provider discovery and recommendation tool for a wide range of service like sports coaches to construction crews. Funded by Gobi Partners.

Round: Series A

iPrice | US$4M – A search and comparison platform for various consumer goods like electronics, appliances, and apparel that also offers coupons and vouchers from various e-commerce sites. Funded by Asia Venture Group and Venturra Capital.

Althea Korea | US$3.4M – E-commerce platform for beauty products offering primarily Korean beauty products. Funded by 500 Startups and Cherubic Ventures.

Jirnexu | US$3M – A fintech startup building customer acquisition and lifecycle management solutions. Funded by DMP, Celebes Capital, NTT DoCoMo, and Nullabor

ServisHero | US$2.7M – A mobile platform that connects users with local service providers. Funded by Golden Gate Ventures

Carsome | US$2M – Car shopping portal connecting buyers to dealers. Funded by IMJ Investment Partners, IdeaRiverRun, and 500 Startups

Nuren Group | US$2M –  Content, community, and commerce platforms with websites targeting women users (wedding.com.my, motherhood.com.my, and nuren.sg). Funded by Gobi Partners.

The Lorry | US$1.5M – A Lorry, van, and 4×4 booking website offering professional house moving, furniture disposal, and office moving services. Funded by SPH Media Fund.

 Round: Series B

iflix | US$45M – Streaming and download platform for movies and TV shows. Funded by Catcha Group and PLDT.

Round: Venture

iCar Asia | US$13.2M – An online network focused on developing and operating leading automotive portals in Malaysia, Indonesia, and Thailand. Investors undisclosed.

Want more information on Asia’s startups? Check out BHIVE  startup database  (it has filters and everything!).

(Proshare)

Potato Farm and Processing in Nigeria – The Cros Agro Potato Farm

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Potato Farm and Processing in Nigeria – The Cros Agro Potato Farm

Cros Agro (a merger of Matankadi and Gadol) is the leading diversified agro-allied firm in Nigeria. Founded in 2001, the company has established its footprint as a player in Potato farming and processing business in West Africa and a leader in Sub-Saharan Africa.

Leading the way in the production of the Irish potato value chain, Cros Agro is investing in the critical enabling components that ensure long time sustainability of the industry. We belive that agriculture is a great industry that can attract the right talent, investment and professionalism.

Cros Agro currently owns a 700 hectares of Oil Palm Plantation, 500 hectares of Ginger farm, 1,200 hectares of Potato field and a 10 hectares ready for Processing facility in Gurara. ,In addition to 3.2k plus hectares Cros Agro has reached and agreement with Rosenqvists Food Technologies to supply its 5,000Kg an hour French Fries and Potato Flakes processing plnt- plant to be completed in December 2017 and commissioned for operation in April 2018.

Key Facts

  • The Largest indigenous potato farm in Nigeria with a landmass of 2,600hectares
  • The first Frozen French fries company in Nigeria and West Africa Subregion
  • Currently employing close to 60 farmers and additional 3k jobs once processing plant resumes in 2017
  • Supporting socio-economic development of rural Nigeria whilst improving on quality of life

Cros Agro Potato Action Plan
·         Produce high quality potato that could be consumed fresh in the form of mashed potatoes, potato pancakes, potato soup, potato salad to name a few.

  • Production of high quality seedlings to meet local and international needs for the purpose of re- planting.
    · Potato peels and other zero value wastes from potato processing are rich in starch which is used by other industries as biodegradable substitutes. They can also be converted to animal feeds.
  • Our heavy equipment will be leased out to farmers in need of such services at a specific fee.

    · Our Storage facilities will also provide storage to other users.

    Consumption: Nigeria

The Investment Case: Nigeria
Nigeria is the fourth biggest producer of potato in Sub-Saharan Africa with a production yield of about 843.000 tonnes per year. Because of an inadequate supply of good quality seeds, inadequate storage facilities, poor diseases and pest management the average yield ( 3.1 ton / hectare) in Nigeria is the lowest in Sub-Saharan Africa. The usage of modern agriculture technics and equipment will boost the productivity of the Nigerian potato value chain. There are proven practical technics that potato yields of 25 ton / hectare and more are possible to harvest on the Plateau area.

Potato Data: Nigeria

  • Total produced : Average 843,000 ton
  • Over 200,000 ton sold in major cities.
  • About 100,000 ton informally sold across Nigerian borders.
  • More than 40,000 ton import mainly from Europe
  • 40% of stored seed potatoes are lost within 3 month of storage

Potato Data: Africa

Potato Sales Price Dynamics: Nigeria

  • Sales prices of ware potatoes in Nigeria show significant fluctuations depending on market location and type of distribution channel (either retail or wholesale). This fact suggests that the market is not very competitive.

 

  • The graphic below shows the sales prices per kg of locally grown potatoes (Nicola variety) for the major cities in Nigeria and for the most important collection markets in Plateau State. Furthermore the figure highlights the sales price per kg of potatoes imported by Shoprite. All amounts represent a four month average comprising the period from Mai to August 2014. (courtesy a report by Sylvanus Mahannan Ayuba, Michael Kitsche with support of : Folarin Ranson Oguntolu (Potato Initative Africa)

EU- The 2011/2012 season
Processing prices are at very high levels because the spring drought has delayed the likely arrival of new crops suitable for processing. The April 2012 processing contract on the Eurex futures p g market temporarily rose above €200/tonne last week, an unprecedented level for the time of year.

Cros Agro goal is to;

  • Produce 432,000 tons per annum of high quality Potato in the first year of operation.
  • Supply enough potatoes to individual consumers, fast food restaurants, hotels and industries in Nigeria and other African countries,
  • Produce 43,800 tons of French Fries in the first year of operations,
  • Be the largest suppliers of high quality seedlings to other farmers.

The factory is expected to be fully operational within 12 months, with a total cost of $52M

  • Become a major player in the Agricultural/ Manufacturing Sector,
  • Create employment opportunity for almost 500 direct and over 10,000 indirect labour.
  • Generate additional revenue from the fees and interest from the facility granted.
  • Have the opportunity for converting debt to equity at a concessionary rate.
  • Have a great opportunity in investing in a highly viable venture.

We intend to achieve these objectives by

  • Production: Adopting internationally best mechanized Agricultural standards for cultivating our acquired 700 hectares of land in Plateau State and 6,500 in Kaduna. This is expected to yield 432,000 tons per annum for two sessions.
  • Storage: With our existing 1000 tons capacity standard storage facility and the development of additional 12,000 tons capacity, all located in Jos. The issues of storage of potato are greatly being addressed.
  • Processing: We are proposing a 5000kg/hr capacity factory for the production of high quality French fries.

Objectives of our Investment Strategy

  • Revenue maximization: With our marketing strategies earlier defined, we intend to capture 75% of the existing French fries market in the Nigerian fast food industry. This amount to about N12b per annum.
  • Profit maximization: the company’s measure of efficiency, success and sustainability to a large extent depends on the level of profitability.
  • Wealth maximization: We will create value for our shareholders/investors. This will be achieved by ensuring that all capital investment to be embarked on generate a positive internal rate of return (IRR).
  • Guaranteed stakeholders welfare: As a socially responsible corporate entity, we will strive to ensure all stakeholders interest are protected.

What You Need to Know About French Fries and Flakes Business in Nigeria

  • The local market consumption of French fries from fast food restaurant is put at over 40tons every normal weekend. However, during vacations, holidays, weekends and summer season, this number triples.
  • French fries are one famous snack enjoyed by many people in Nigeria. French fries are deep fried slices of potatoes which are served hot or often consumed as snacks. Potato flakes are becoming alternatives to staples like Gari and Pounded Yam
  • French fries are mostly served in fast food restaurants in Nigeria. The fast food sector in Nigeria contributes annual revenue of over N200billion to the economy. French fries have approximately 8% shares in fast food industry.
  • French fries market in Nigeria is national, with a population of about 170m people, with a predicted national population growth rate of 5.7% per annum, the French fries market in Nigeria is enormous

  • Produce 40,000 tons per annum of high quality Potato in the first year of operation.
  • Supply enough potatoes to individual consumers, fast food restaurants, hotels and industries in Nigeria and other African countries,
  • Produce 43,800 tons of French Fries in the first year of operations,
  • Be the largest suppliers of high quality seedlings to other farmers.

IRR derived by Cros Agro is estimated at 148%.

Facts & Figures 

Total estimated cost of entire project                                                                 $50+Millions

Total Capital costs for Processing Plant (French Fries and Flakes)              $35+millions

Debt to equity ratio is assumed at 70% debt and 30% equity

Average yearly cumulative turnover                                                                   $80+millions

Post Asset Portfolio cumulative valuation                                                        $110+millions

Required Debt for processsing plants and operations                                      $35+millions

Cros Agro Farm…  

  • Production: Adopting internationally best mechanized Agricultural standards for cultivating our acquired 2,500 hectares of land in Plateau State and 2,000 plus hectares in Kaduna. This is expected to yield 432,000 tons per annum for two sessions.
  • Storage: With our existing 1000 tons capacity standard storage facility and the development of additional 12,000 tons capacity, all located in Jos. The issues of storage of potato are greatly being addressed.
  • Processing: We are proposing a 5000kg/hr capacity factory for the production of high quality French fries.

Facts & Figures

Total investments required                                                                                  $50 + million

Total Debt required                                                                                                  $35 + million

Total Equity required                                                                                               $15 + million

Facts & Figures

Farm Estate Management                                                                                       4+

Total Asset value to the Group Post fund raise                                               $110+ Million

CROS AGRO Asset Management

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