Success Story:Eric Muthomi – The Kenyan lawyer who built a successful business from a simple ‘banana idea’

KENYA -

Africans consume up to 40 percent of bananas produced in the world every year. Like maize, rice and wheat, bananas are one of the most important and widely eaten food staples in East Africa. Kenya, Uganda, Tanzania, Rwanda and Burundi are among the world’s largest producers and people in these countries eat up to 400 kilograms of bananas every year – the highest consumption rate in the world! Despite this huge demand and market, many smallholder banana farmers in Kenya do not make enough money from their harvests due to poor storage, wastage and exploitative middlemen. In just three years, Eric Muthomi, a 27-year old law graduate has built a successful business from solving the banana problem in Meru, his Kenyan hometown. This article tells the inspiring story of this young man and his brilliant idea which has won several awards and placed him on the 2013 Forbes List of Best Young African Entrepreneurs.

The 'banana availability' problem...

In our previous article, 3+ guaranteed ways to find profitable business ideas in Africa, we identified problem solving as one of the easiest ways to find lucrative business ideas on our continent. If you can solve a serious problem that affects people in their work, business or daily lives, there is a high chance that you will make money. This is exactly what Eric Muthomi is doing by solving the ‘banana availability problem’ in his native Kenya.

Due to the huge demand for bananas and its strategic importance in food security, there are over 400,000 smallholder banana farmers in Kenya. More than 60 percent of these farmers (who are mostly in remote rural areas) earn a full income from selling raw bananas (both ripe and unripe) on the local markets. However, due to the production cycles of the crop, there is an excess supply of bananas to the markets during harvest time. As a result of this oversupply, many farmers make very little money from their banana harvests and are routinely exploited by middlemen who take advantage of the low market prices.

Because raw bananas have a short shelf life (can rot easily), they have to be properly stored or processed if they must last long. Due to a lack of storage and processing facilities, bad roads and poor access to markets, about half of the bananas harvested in Kenya every year get rotten, are wasted and never get sold. As a result, many Kenyan farmers suffer serious losses after all the money, time and effort invested in farming bananas during the year.

Bananas are not available all year round; they become very cheap during harvest time and expensive in the dry season. This is dangerous for a crop that is used to avoid famine and serves as a food buffer in times of scarcity between cereal harvests. In addition to this problem, thousands of farmers remain poor as a result of waste and poor yields from their banana harvests.

Eric Muthomi’s solution to the rescue…

Eric is a 27-year old graduate of law from the Catholic University of East Africa. From an early age, he had made up his mind to start his own business after school. He first noticed the problems most banana farmers were facing in Meru, his hometown in Central Kenya and one of the largest banana producing regions in the country. He decided to start up a company that would buy raw bananas from local farmers at guaranteed prices, process them into banana flour and package them for sale in the market. This is the idea that formed his company, Stawi Foods.

Stawi Foods(stawi means ‘prosperity’ in Swahili), has improved the lives of thousands of banana farmers by providing them with sure income. It has also helped to increase the shelf life of bananas which would have rot and wasted if they are not sold soon after harvest. The banana flour, which is made from processed green bananas, is gluten free, nutritious and can be used to make baby food, porridge, mashed food, baked foods and soups. This versatile branded product which is sold as ‘Stawi Natural Banana Flour’ is distributed in several major supermarkets across Kenya.

Eric Muthomi’s idea now allows smallholder banana farmers in Kenya to earn 30 percent more on their bananas than they would have made if they sold it in the local markets. In addition, selling their banana harvests to a guaranteed buyer (Stawi Foods), protects them from the low and fluctuating prices of banana in times of harvest and scarcity. This is helping many young people to remain gainfully employed as banana farmers.

At the moment, this young company (which only started business in 2011), works with more than 100 groups of farmers in Meru which supply the raw bananas used for making Stawi Banana flour. The raw bananas are processed using both manual labour and processing equipment by a team of full-time employees and casual workers. As his Stawi Banana Flour gains popularity across Kenya and the East Africa region, Eric Muthomi expects to partner with more farmer groups across the country to get the raw materials (green bananas) it needs to produce more flour to meet the growing demand.

Since he put this amazing idea to action in 2011, Eric Muthomi has attracted a lot of local and international attention. In the same year he started Stawi Foods, Eric won the top prize in the 2011 Nature Challenge Africa competition sponsored by the Worldwide Fund for Nature (WWF) Kenya in partnership with NETFUND which encourages businesses on sustainable use of natural resources in Africa. In 2012, he won a business plan competition organized by Kenya’s Ministry of Industrialization which looks out for innovative business ideas every year. Eric beat over 3,000 other contestants who own young and startup manufacturing businesses to become the 2012 winner.

In the same year (2012), Eric Muthomi won another award for his brilliant business idea in the Chase Bank Enablis ILO Business Launch Pad Competition in the Agribusiness Agro-processing category. This award rewards the most exciting and promising business plan among Kenyan entrepreneurs. He was also listed by Forbes Magazine as one of Africa’s Best Young Entrepreneurs. With all this attention, Eric believes it will not be long before he penetrates the East African regional market which will act as his stepping stone into international markets like Europe and North America.

3 Things we should learn from Eric Muthomi’s success...

Our goal for sharing the success stories of African entrepreneurs is to inspire you and also show you what is possible. However, on the road to success, there are often hard lessons, tough choices and rough challenges.  Eric Muthomi’s experience on this road is rich with lessons that will inspire you to take action on that business dream of yours. Read and learn…

#1 - There will never be a ‘perfect time’ to start your own business

Eric Muthomi has caught the world’s attention because he decided to take action on his dream even though he had a reason to postpone it or wait for the ‘right’ time. When he started his business, Stawi Foods, he was only 25 years old and fresh out of university. He didn’t even have any money to start a business so he borrowed from his family. In a previous article, we explored 10 interesting ways to raise the capital you need to start a business. You should check it out!

Apart from the challenge of getting start up capital for his business, Eric had to scale through the long and tiring licensing requirements and approvals that are compulsory for ‘food processing’ and ‘manufacturing’ companies in Kenya (a similar experience across many African countries). In addition to all these, he also faced the problem of inadequate and expensive power supply that seriously affects manufacturing businesses in many parts of Africa. In the face of all these excuses (problems), Eric is now the CEO of a successful business that is changing lives in his country. If you keep waiting for the ‘perfect time’ to start your business in Africa, that time may never come. You can either keep making excuses or start doing something with what little you already have! (photo credit: beyondblessedblog.com)

#2 – Inspire yourself with the problems around you.

One of the things that stand out from Eric Muthomi’s story is the simplicity of his business idea. He didn’t invent it; it’s a problem that has always existed for centuries. Smallholder banana farmers in his country have always suffered from wastage, low prices from middlemen and poor access to good markets. By thinking of a way to solve these nagging problems, Eric stumbled on an idea that is today a lucrative and successful business.

Many of us spend too much time complaining and whining about the many problems that surround us here in Africa. We are blinded by all the complaining that we often do not see the huge goldmines that lie in solving these problems. Eric’s story shows that if you take the time to think of creative solutions to existing problems around you, it’s very likely that you will stumble on an interesting business idea. The lesson here is simple: don’t let problems frustrate you, use them to inspire yourself!

#3 - Make money and help people at the same time

Eric Muthomi says “ I am happy when farmers come up to me and thank me for getting them a market for their product. It is such a satisfying feeling.”

While the goal of starting a business is usually to make money, touching lives and affecting people positively can be a rewarding experience which money cannot buy. The great thing about using ‘problem solving’ as the basis for your business idea is that it removes pain, frustration and/or suffering that already exists in people’s lives. In the case of Eric’s business, it allowed thousands of poor rural farmers to remain in business while earning more money from their banana harvests. His business is creating jobs for Kenyans and will help to earn foreign exchange for his country when he starts exporting his ‘Stawi Natural Banana Flour’ product. It’s always a ‘win-win’ situation when you have a business idea that can make money and help people at the same time! 

Do you have an idea that can solve an existing problem?

Eric Muthomi’s success story proves again that lucrative opportunities are available to people who can find solutions to serious problems affecting Africans. In our popular article, 3+ Guaranteed ways to find profitable business ideas in Africa, we identified problem-solving as one of the easiest ways to find ideas that can become very successful businesses.

This article was written to inspire you to look out for, and exploit similar opportunities in your environment. We suggest that you start making a list of problems you have noticed and their possible solutions. Are there any products or foods in your area that suffer the same wastages and face the problems like the bananas in Kenya? Can you creatively copy and apply Eric Muthomi’s business formula to your local environment? Think!

We would love to hear from you about your successes, challenges, advice and questions. Do not forget to leave a comment in the section below and share this inspiring story with your friends using the Facebook, Twitter and Google+ buttons below. You should also explore other inspiring profiles of successful African entrepreneurs in the Get Inspired section of this website!

To your financial success!

Success Story:How a Former Denny's Waitress Amassed an Empire of Over 75 Denny's Locations

Dawn Lafreeda began working at a Denny's in California at 16, making her way from hostess to waitress. During college, she took on a second job at a software company, where she learned about accounting and managing personnel.

In 1984, when she was 23, Lafreeda was able to merge all her skills when she had the opportunity to purchase a Denny's restaurant in the tiny mining town of Globe, Ariz. She jumped at the chance. "I knew from a young age I was going to own my own business," she says. "I always knew I was going to be self-employed."

Eighteen months later, impressed by what Lafreeda had accomplished, Denny's offered her four ailing restaurants in west Texas. It was a challenge whipping the stores into shape, but for Lafreeda the biggest hurdle was culture shock--she wasn't prepared for the area's depressed economy and arid landscape. Every week she called Denny's executives and asked them to sell her a store in the big city of San Antonio.

Eventually they did, and since moving there, Lafreeda has increased her empire to 75 Denny's locations in six states, becoming the largest single-owner franchisee in the system.
We got Lafreeda to tell us how she has built her empire over the past three decades.

You bought a restaurant at 23? That's pretty gutsy.
When you're 23 you don't think the same way you do when you're older. You're fearless and think you can do it all. It empowered me. I was too ignorant to know any better. I remember having a moment of doubt. I told my mom, "I have 35 employees depending on me; what if I fail?" She said, "You'll just start over."

How were you received as a young, female business owner?
I didn't feel discrimination, but when I was 23 I looked like I was 12. Nobody took me seriously. I'd go to the bank for a loan, and they wouldn't believe I was the owner. I just kept forging ahead until I found people to deal with. I wouldn't let no be an answer.

I remember a few years ago, Denny's told me a group called them looking for a female speaker. They realized they had only men on their program and contacted lots of chains to find out if they had any female multi-unit, multistate owners. We realized at that time there aren't a lot of women in multi-unit businesses.

"I just kept forging ahead ... I wouldn't let no be an answer."
--Dawn Lafreeda

What's the biggest change since you became a franchisee?
Being open 24 hours has become more challenging. Over the last 10 or 15 years, we've faced a lot of employee issues that cause us to work harder. The way the younger generation views life and the way they work is very different than when I was in their age group. We have to recruit new employees all the time.

You have 75 units. you must never take a break.
Right now, I'm doing it for the love of it. I love all aspects of the restaurant business. But I think my children--I have 10-year-old twin sons--balance me. If not for them I would work all the time! I love going to work. But I do balance it now, and I have great people and managers to help me. Still, when I'm in town I work six days a week.

Most multi-unit franchisees diversify brands. Why have you stuck with Denny's?
Well, diversifying makes great sense, and opportunities come every week. But this is my 30th year with Denny's. They took a chance on me as a young kid and helped me grow. I've been fulfilled by my relationship with them. And I actually like Denny's. I was at a wedding in Florida last week and I ate at
Denny's twice!

Another Testimony From A Renown Nigeria Internet Marketer:Living A Fulfilled Life With Internet and Information Marketing Business

Henry Omenogor

If you have been reading SuccessDigest Extra! for sometime, the person of Henry Omenogor wouldn't need any introduction to you. Almost in every edition of the paper that is published, his advertisements usually appear.

The consistency with which he advertises his Internet and information marketing business can only be, without doubt, a reflection of how solid his business is in the nation's fledgling information marketing industry.

As an established business owner, who had the courage to pursue his dream of owning his business from the information and guidance of SuccessDigest, and whose business is now not only providing him comfortable means of livelihood, but also impacting the lives of hundreds of Nigerians across the country positively, Henry Omenogor is deserving to grace our hall of Fame this week.

Henry's exposure to the Internet came several years ago when he was working for Simba, a computer marketing company representing Comet Technology UK in Nigeria. One of his duties was to be sending emails to Nigerian computer companies, informing them of their offers and directing them to their website to get more details of products and thus place order.

This was email marketing, and Henry was amazed to see how effective it was for their sales.

By the time Henry made contact with SuccessDigest and began to Iearn about making money on the Internet, he was convinced Internet and information marketing business held immense opportunity for him to make profit, and he was determined to go into it. From working at Simba, he was able to identify a lucrative niche he could tap into:

'Once I discovered the beauty of the Internet with my experience at Simba, I reasoned that if a company can have a website with office in UK and market 'their products globally, then there is the likelihood that Nigerian companies will like to have websites too.

Then I started researching on how to become a web developer. While at Simba, I learnt how to use FrontPage to design websites and later, I resigned to start my Web design and hosting business as well as a computer training service,” he explained.

Leaving his comfortable job to start a website design and hosting business, an uncharted terrain he had not much experience about was a big risk, but it was a decision strongly propelled by his total belief that it would succeed.

With this mindset, Henry was determined never to give up; he was bent on putting in all he could do to ensure the success of his business. However, two years into the business, the worst happened.

“Two years after I started my business, it collapsed. I sold all my properties, including my car and started from scratch again. I could not pay my office and house rents, as well as other bills,” Henry recalled.

Although down, he was certainly not out; his positive mental attitude was still intact.

“But I have a belief system that there is a purpose why God created me, that I have potentials; that God has created everything I need to bring that purpose to reality. All I need to do is to study and watch those who are doing it and make them my mentor.

I also reasoned that if Dr. Ojeagbase can do it, all I need is to think like him. Each time I had a challenge; I would sit down and ask myself a question; If my mentors Dr. Ojeagbase, Ayo Arowolo, David Oyedepo, Joel Comm and Brian Sheer were to be faced with this challenge, how would they tackle it? I would then apply positive thinking and get out of it.

Picking up himself from the shackles of bankruptcy, Henry gradually developed and built his website design and hosting business. To get clients, he would identify companies who didn’t have websites and send emails to them, letting them know why it was necessary for them to have one.

Not long after, he started receiving good orders for his service, which eventually confirmed his initial belief that the business was going to be lucrative.

From website design and hosting service, Henry added information marketing business. “Information marketing has been one of my best sources of income locally and globally. I still sell information that I created since 2006 till date.

I sell my information in the form of printed books, videos that I shoot on how to solve problems, ebooks for download, seminars and consulting. I sell secrets!

In addition to those sources of income, Henry also makes money on the internet through blogging. From a number of blogs where he promotes affiliate products, a sizeable pile of cash finds its way into his bank account yearly.

Yet another source of online income to Henry is domain monetization. According to him, 'I make money from what I call virtual real estate. I started selling domain when I registered myonlineoffice.biz for $8 and sold it for $419 to a company in France.

I had to make more research and discovered that I can sell higher as well as make money daily from parking. I cannot sell a domain for less than $1,200 now.”

With that assurance, Henry Omenogor's success on the Internet is without question.

Having set up his online business to run automatically and generate passive income without his physical presence, Henry could diversify into other businesses. Presently, he has added certain brick and mortar businesses including printing and publishing, rentals: customized printing service, and business educational services to his portfolio of businesses.

To document his experience and knowledge of his business for other people to learn and benefit from, Henry Omenogor, a trained Industrial Mathematician turned Internet and information marketer, has  written and self published several books, including titles such as: Internet Report Riches - How to Make $3K Monthly Creating and Selling Information Products Locally and Globally; Deep Secrets of Domain Business - How to Register Domain Name for $8 and Sell it Above $1,200 in no time; Affiliate Report Riches - How to Make Money from Amazon Associate, ClickBank and 2Checkout Using Payoneer Mastercard and Graphcard.

Surely, with the success his businesses have attained over the years, Henry, who sits as the CEO of Menog Computers, Oh My Website, Menog Prints and Publishing, and Wisemen Rentals, has no need whatsoever to regret his decision to resign from paid employment and build his business some years back.

In fact, he is grateful to God for directing his path to discovering Internet and information marketing business and Success Digest.

"The Impact of SuccessDigest on my life has been unquantifiable. In going through the road to wealth, you need those who have been there. That is what SuccessDigest has as impact on me and others. Dr. Ojeagbase's Carbon Copy Principles has helped me and a lot of other Nigerians. Imagine, I received a mail from a lady in Zimbabwe who wanted my product based on an SD she read over there in Zimbabwe, which her husband took to that country,” remarked Henry in appreciation of SuccessDigest’s contribution to his business success.

Interview With The Internet CEO: Nigerian Internet Millionaire Jason Njoku

Jason Njoku

By Ann Brown

Jason Njoku, Nigeria’s millionaire Internet entrepreneur, made history in 2012 when he completed what was possibly the largest fundraising round in the West African tech world. The founder and CEO of iROKO Partners, the largest digital distributor of Nigerian movies and African music, raised $8 million from New York-based Tiger Global Management. 

IROKO Partners is the holding company behind the successful iRokoTV, NollywoodLove, and Njoku’s latest venture, African music streaming service iROKING.

Now, Njoku and partner Bastian Gotter have launched SPARK, a $1 million-backed company to support and develop aspiring Nigerian tech and Internet entrepreneurs. Based in Lagos, SPARK builds companies in Africa’s Internet sector. SPARK-funded companies, which are managed by Njoku, Gotter, and Njoku’s wife Mary Remmy-Njoku, share the same administrative infrastructure, legal teams and mentors, as well as marketing support. They already have so far seed-funded and created 13 start-ups to the tune of $35,000-75,000 each. The companies include a hotel room booking site, a Christian dating site and a property-letting site.

Njoku spoke in an exclusive interview to TNJ.com, online presence of The Network Journal magazine and a sister site of www.africastrictlybusiness.com, following the launch of SPARK.

TNJ.com: Why launch Spark?

Jason Njoku: We launched SPARK because the Internet is coming to Nigeria in a big, big way and we fully intend to be the catalyst behind it. New wealth will be generated in Nigeria, disrupting the traditional economy, as more people will be coming online to shop, to find services, to travel--to do whatever they need to do.

We know that millions of Nigerians will be coming online and becoming more and more dependent on the Internet as a crucial part of their everyday lives and we believe that they will be using SPARK-network websites. Billions of dollars of value has been attributed to Internet companies in the West, in Europe, North America, Asia, and even in South America, but not Africa, yet. The online revolution in Africa starts today and Bastian and I are throwing our hats into the ring and saying that we want to be a massive part of the revolution.

 TNJ.com:  How does SPARK work?

Njoku: SPARK’s USP, compared to angel investors or venture capitalists, is that we remove the challenges of doing business in Africa for the start-ups in our network. We house them, we provide Internet usage, we provide legal, marketing, technical and administrative assistance and on top of this, all the companies have access to myself, Bastian and my wife, Mary Remmy-Njoku for mentorship, making connections and problem solving.

Our mission is to remove challenges for entrepreneurs in our SPARK network, so they can go about the business of doing business. We funded 13 companies in about three weeks. Speed is crucial in this game. We don't waste time with weighty PowerPoint decks. If we think an idea has potential, if we can figure out how to monetize it, and if we have a young, creative person willing to drive the idea until it's a success, we'll write a check and welcome them into the SPARK network. 

TNJ.com: What are your first year's goals for the company?

Njoku: By the end of 2013, we will have hopefully seed-funded or invested in 20 companies in total. We also expect to grow the funds available to SPARK-funded companies by working with others looking to invest in and be a part of Nigeria’s Internet and tech ecosystem. 

TNJ.com: What are some of your long-term goals for the company?

Njoku: Ultimately, we want Africa's first billion dollar dotcom companies to be born out of the SPARK network. We'll continue to invest time, energy and money into super-talented, exciting tech startups that will totally disrupt Nigeria, and Africa's, entire Internet eco-system.

Learn more on how to start Affiliate Marketing and critical steps to make it big as an affiliate marketer even at inception in our next post

Read more in the next post.

INTERNET CEO OF THE WEEK,OTUNBA ALABI AKIN, Interesting Pix Inside

Internet CEO Of The Week:  Otunba Alabi Akin

First thanks to those that my regarded my offer two days ago I know for sure that your investment will pay off, then unto the main matter.

Alabi Akin is a household name in Nigeria now because of how popular his Sport Betting Platform (Nairabet).

I got to know Alabi Akin far back 2007, that is about seven years ago but never met him until 2009 at one of his seminar, forget it o, this guy has made so much money from Internet Business most especially Information Marketing that he do say even when he sleeps the money keeps coming.

He said in one of stories that when he was broke, and wanted to start internet business that he told his girlfriend and his girlfriend was like what sort of rubbish is he saying, also that is it internet business that he will use to take care of her,to cut the whole long story short, his girlfriend called of their relationship.

Otunba For Real

He said he felt bad, but that situation became a stepping stone for his internet business success, he said he made up his mind to know and do internet business and mostly to succeed in it in order to prove to his girlfriend that Internet business is a good business.

He also said when he finally made it big in the  business, his girlfriend came back begging and he laughed and told her that she called off the relationship and now she is back begging...he told her to forget the relationship that he has gotten someone serious already.

Akin Alabi is one of the people I respect so much not because of anything but because of his business acumen, 2009 at one of his seminars where i met him he taught us alot about Internet Business mostly about information marketing where he focused on and when it was about to end the seminar he introduced his new business to us that business turned to be the most popular business he is known with today that business is NAIRABET. 

Now this genius has thought thousands of people internet busness, has both national and international connection has one of the biggest betting platform in Nigeria and others.

Lets Check out some of Alabi Akin's Pictures

Mr Nairabet

Akin and baby

 

A real football lover

All works without play makes ...

 

Hope you enjoyed this post about my oga Otunba Alabi Akin see you tomorrow, will be sharing some hot business tips.

The Best

Lazarus Uwakwe

facebook.com/youngbusinessguru

i 

More On Mr Konga,Sim Shagaya

With a population of over 160 million and growing internet penetration, Nigeria has the potential to be a lucrative e-commerce market.

However, for many Nigerians online shopping is still a new concept, and e-commerce firms need to do more than just copy what Amazon is doing in the West.

One person who knows all about the unique challenges of the Nigerian market is Sim Shagaya, founder and CEO of online retailer Konga.com. Launched in July 2012, Konga sells everything from books to fridges to mobile phones. The company’s main warehouse is in Nigeria’s commercial hub Lagos, while it has sorting centres in Abuja and Port Harcourt.

After customers place their orders online, they receive a call from Konga’s team to assure them that the order has been received. Shagaya believes this human contact is essential in such a young e-commerce market. “You want to build a connection with people. They still want to feel that there are human beings behind the system.” He, however, believes that as the industry develops, the need for such human contact will diminish.

Because many Nigerians are not comfortable with paying for things online, Konga also allows its customers to make cash payments on delivery. “E-commerce arrived in Africa at a very different time from when it arrived in the United States. At the time when Amazon was kicking into gear, there was a culture of credit card use, and the formation of digital payments. But here it is all happening at the same time. Card penetration is still low, people are still getting used to this idea of being able to pay for things electronically – and cash is still king,” says Shagaya.

From the US to Konga

Shagaya was born in Nigeria, but received most of his education in the US. After he completed his MBA at Harvard Business School in the early 2000s, he had an urge to return to Africa. At the time Nigeria was still just finding its feet in democracy, and Shagaya opted for the more stable South Africa where he joined Rand Merchant Bank.

Following a stint at the investment bank, Shagaya moved to Nigeria where he became Google’s head for Africa, developing the search giant’s strategy for the entire continent, excluding South Africa. He then started a billboard advertising business, which is today one of the top players in the industry. After six years of running the billboard company, Shagaya was itching to get back into the online space.

He then convinced the board of the billboard company to invest in DealDey. Launched in March 2011, DealDey is a daily deals website, loosely based on the Groupon model that offers products at highly discounted rates. Shagaya says that DealDey provides a good platform for companies to clear their inventories.

The success of DealDey confirmed that there is a market for online shopping in Nigeria, so Shagaya started to focus all his attention on Konga.com. (He still serves as a board member of DealDey).

Konga was launched in 2012 with the initial financing coming out of Shagaya’s own pocket. However, in less than a year of operation, the company attracted investment from two large investors.

Two months into Konga’s existence, it received capital from Swedish investment firm Kinnevik. Barely a few months after that, South African-based emerging markets media giant, Naspers, also announced a major investment. According to Shagaya, Naspers CEO Koos Bekker, the man who basically introduced pay-TV in South Africa, has taken a personal interest in Konga. Interestingly, in 2011 Naspers pulled its own e-commerce offering, Kalahari, from the Nigerian market. In a statement at the time, Naspers said that “the performance of the service has been below expectation since the launch and reaching profitability was not a reasonable near-term prospect”.

Over the past few years there has been a lot of talk about Africa’s growing middle-class and increasing spending power. For Shagaya, this is a reality. “The middle class in Nigeria is making a bit more money, and we are seeing that. People are buying washing machines and air conditioners for the first time.”

Currently Konga’s top selling products are home appliances and electronics, but clothing and apparel – which have only recently been introduced – are showing significant growth.

Although Konga has invested in advertising the platform, Shagaya says that the majority of sales come from ‘word of mouth’ marketing.

Talent and infrastructure – dealing with the challenges

 

The most difficult challenge for Shagaya is finding talented staff in Nigeria. “There is a dearth of skills on our continent because we haven’t invested anything that we should have in education, and even healthcare. So the human capital quality here is not what it should be. So finding good people is the toughest part.”

Nigeria’s poor road infrastructure and congestion in cities like Lagos, also pose challenges to Konga. In some of the major cities such as Lagos, Abuja and Port Harcourt, Konga makes use of tut-tuks and motorcycles to weave through the traffic and get the products to its customers on time. In the rest of the country the company relies on third party courier companies.

Although Konga covers every state of Nigeria, Shagaya concedes that the cost of transporting goods to some rural areas becomes too high when compared to the value of the product.

Getting Nigerian retailers online

Recently the company announced a new service called Konga Mall, which allows other retailers and traders to have their own storefront on the Konga platform – giving them the opportunity to benefit from the traffic to Konga’s website and its logistics infrastructure.

“Imagine you are that Nigerian businesswoman who travels to Dubai and buys merchandise. I’ve seen Nigerian sellers go from office to office all day selling things. Direct selling is a big channel here. But imagine if you can bring that merchandise to Konga’s warehouse, and we can open up your merchandise to nationwide distribution, and then take a humble commission. This is a model that will prove very interesting for Africa in the long-term, and it will be a big part of e-commerce in Africa,” notes Shagaya.

Only the start of a long journey

The person who has had the biggest impact on Shagaya’s career is Hakeem Belo-Osagie, a well-known Nigerian businessman who has been active in a variety of sectors, including energy, finance and telecommunications.

One of the things Shagaya has learnt from Belo-Osagie is to do thorough planning before starting with any venture. “He taught me how to be really tactical and to plan very carefully. There is enormous value in careful planning.”

During a TED talk in Lagos last year, Shangaya described Konga as a long-term “epic journey”. With Shagaya’s solid business experience and enthusiasm, coupled with the support of his heavyweight investors, Konga might just reach its destination.

Tomorrow I should be writing like four hot posts on a row.

Also very soon we should be having Internet Gurus like Olaide Alim,Adetunji Gbolagade and others teach us the hot secrets they use in making money online especially from FIVERR BUSINESS.

Make sure you read all our posts tomorrow.

SIM SHAGAYA(CEO Konga)- INTERNET CEO PERSONALITY OF THE WEEK

My Experience With Sim Shagaya,CEO Konga

I first met this genius CEO of Konga this year at the Platform Tech organized by Covenant Christian Centre,my church ofFcourse.

He was one of the guest speakers of that day and believe me this guy is a super star and no wonder his company Konga is flying high.

SOME OF THE THINGS I LEARNT FROM THIS GUY

1.His Never Give Up Attitude

According to him Mr Sim said he has been doing Internet business for quite long,he has launched a lot of Internet Businesses some failed some strived and succeeded like konga,he went ahead to tell us some of the internet business he has done

·      

  -        -- The popular deal dey

·        --- A Social networking site

·       - ---A Forum

·       ---- A Dating Site

·      ----- Konga

·        

           Others I can’t remember

All I know is that this guy is really was never ready to give up,so he made it big.

2.He Is Intelligent

One thing this guy said that amazed me so much is that instead of employing the so called American engineers to power his business he hired African gurus mostly Nigerians and believe me they gave him hot surprises what he thought they might not be able to do they surpassed his expectations…wow that’s good and positive thinking if it was some people they would have said no o I don’t wanna jke with my business and blah blah blah

3.He Is Working With The Right Team

I think no one I repeat no one on this earth can really succeed or make exploit working with the wrong team attimes it is even beter of working on your own than working with a negative group of people because this people might even end up corrupting your good intentions,so you will be back to level zero,so you see.

4.He Is Determined

It is only a determined that can make impact in this world of ours,this guy had lost money building a lot of business but see he did not lost all he built experience from his lost ventured and when he started DealDey and Konga they were evidence of his determination, they succeeded and he gained more than times ten of what he had lost from his past ventures.

5.He Had Been In Tech Business

Well it might surprise you to know that this guy had been working with Google before deeming it fit to build his own Internet venture,as the saying goes a servant can grow far beyong his master given that he/she gives in to constant learning and improvement so therefore this guy is trying to prove this,he had been there with google knowing a lot about internet business,and here is he doing great with his own venture,that’s the power of learning…I remember far back 2010 when I was still teaching in a private school,I have been doing this for years even as a young guy when I decided to start my own private institution I made it big time just because I have been there,my friend don’t ever invest in something you don’t know so as not to regret at the end.

6.He Is A Researcher

This guy said something that blew my mind and that of a lot that were present,he said he has discovered that when you give that to the society,the society has a way of greatly rewarding you,he went further to say he recently launched a platform at konga where you can sell and buy without the intervention of Konga unlike some other Ecommerce site where the buyers and the sellers don’t ever get each others details not to talk of getting to meet, and doing business Mr Sim said he knows what he doing and for sure he will perfect things.

7.He Is Creative

Yes o this guy is really creative,he is a creator and believe me because of this single trait of him,he can't go down after creating this he goes for this,with his resume of working with google he could have packaged his credentials like one guy that came with my school with a cv that looked like a booklet,I just laughed and laughed and laughed…Mehn if you are living on his earth and you are not yet creative you need to do something about your existence because this world is meant for the creative,Mr Sim is very creative

Later this week I will write more about this guys profile.