- Facebook Shares Surge After Zuckerberg Announces Facebook Shops
Shares of Facebook rose by 6.4 percent to a record-high of $230.75 on Wednesday after the company’s CEO and Co-Founder, Mark Zuckerberg announced Facebook Shops on Tuesday.
According to Zuckerberg, Facebook Shops will allow businesses to list products on their Facebook Page, Instagram Profile, Stories or in ads for free. In the future, the company plans to also allow businesses to sell products to customers through WhatsApp, Messenger and Instagram Direct.
The CEO explained that businesses will also be able to tag products during Facebook and Instagram live streams.
“It’s one simple and consistent experience across this family of apps, which means it is easier for people,” Zuckerberg said in a live stream on Facebook. “That of course means there’ll be higher conversions and more sales for small businesses.”
On Wednesday, the company’s shares jumped to an all-time high of $230.75 as investors immediately embraced the e-commerce initiative and predicted that it could add as much as $30 billion to Facebook revenue going forward.
Facebook shares moderated slightly to $229.97 as at the time of writing this report.
“We think Facebook Shop in a simplistic bull case could drive up to as much as a $30 [billion] revenue opportunity, across a combination of take-rate driven transactional and advertising revenue,” the analysts stated.
Similarly, AB Bernstein, in a note to clients on Wednesday, said the new Facebook Shops could open a $1.3 trillion market.
“We have long viewed FB as the ‘rent’ to the digital economy and a core component of the online retail ecosystem,” the analysts wrote.
“Our business model here is ads, so rather than charge businesses for Shops, we know that if Shops are valuable for businesses they’re going to in general want to bid more for ads,” Zuckerberg said. “We’ll eventually make money that way.”
Facebook to Open Office in Lagos, Nigeria
Social Media Giant Facebook Will Open a New Office in Nigeria
Facebook Inc, the world’s biggest social media company, on Friday announced it will open a new office in Lagos, Nigeria. The second of such in Africa.
According to the company, the office will be home to various facebook teams, servicing the African continent in Sales, Partnerships, Policy, Communications as well as Engineers.
The new office is expected to be operational in the second half of 2021 and will be the first in Africa to house a team of expert engineers building for the future of Africa and beyond.
Speaking on the new office, Ime Archibong, Facebook’s Head of New Product Experimentation, said: “The opening of our new office in Lagos, Nigeria presents new and exciting opportunities in digital innovations to be developed from the continent and taken to the rest of the world. All across Africa we’re seeing immense talent in the tech ecosystem, and I’m proud that with the upcoming opening of our new office, we’ll be building products for the future of Africa, and the rest of the world, with Africans at the helm. We look forward to contributing further to the African tech ecosystem.”
The investment of the new Facebook office follows the 2018 opening of NG_Hub, its first flagship community hub space in Africa in partnership with CcHub, and the 2019 opening of a Small Business Group (SBG) Operations Centre in Lagos, in partnership with Teleperformance. Providing outsourced support to all English-speaking advertisers across Sub-Saharan Africa, the SBG office supports Small Medium Businesses (SMBs) through its Advocacy, Community & Education (ACE) programme, as well as its Marketing Expert sales programmes – all aimed at enabling SMBs to accelerate the growth and development of their businesses.
“Our new office in Nigeria presents an important milestone which further reinforces our ongoing commitment to the region”, commented Kojo Boakye, Facebook’s Director of Public Policy, Africa. “Our mission in Africa is no different to elsewhere in the world – to build community and bring the world closer together, and I’m excited about the possibilities that this will create, not just in Nigeria, but across Africa.”
Since the opening of its first office in 2015, Facebook has made a number of investments across the continent, aimed at supporting and growing the tech ecosystem, expanding and providing reliable connectivity infrastructures and helping businesses to grow locally, regionally and globally. This includes the recent rollout of its SMB Grants programme in Nigeria and South Africa, aimed at supporting over 900 businesses by providing a combination of cash and ad credits to help small businesses as they rebuild from COVID. The development of 2Africa, the world’s largest subsea cable project that will deliver much needed internet capacity and reliability across large parts of Africa, as well as its ongoing training programmes across the continent which support various communities including students, SMBs, digital creatives, female entrepreneurs, start-up’s and developers.
Nunu Ntshingila, Regional Director, Facebook Africa, said: “We’re delighted to be announcing our new office in Nigeria. Five years on from opening our first office on the continent in Johannesburg, South Africa, we’re continuing to invest in and support local talent, as well as the various communities that use our platforms. The office in Lagos will also be key in helping to expand how we service our clients across the continent.”
Senator Rubio Urges Trump to Scrap TikTok-Oracle Deal if ByteDance Ties Remain
Marco Rubio and five other Republican senators called on the Trump administration to reject a proposed deal for Oracle Corp ORCL.N to become a “trusted technology provider” for popular social media platform TikTok’s U.S. operations, if ties to Chinese owner ByteDance remain.
Rubio, the first senator to call on the administration to investigate TikTok over censorship concerns, said in the letter to President Donald Trump that “serious questions” remained about Oracle’s role, the technology it would provide to ByteDance, and the future of the application’s algorithm.
“We remain opposed to any deal that would allow China-based or controlled entities to retain, control or modify the code or algorithms that operate any U.S.-based version of TikTok,” Rubio wrote in the letter, dated Wednesday.
“We are heartened that this deal still requires government approval, and if reports indicating this proposed deal will retain links to ByteDance or other Chinese-controlled entities, we strongly urge the administration to reject such a proposal on national security grounds,” he added.
Late on Wednesday, Senator Ted Cruz raised concerns about a deal, saying in a separate letter the Oracle ByteDance deal “failed to meet the intent of the president’s executive orders” and “raises serious national security concerns.”
The Trump administration will make a decision soon on Oracle becoming a trusted technology provider, White House press secretary Kayleigh McEnany said on Wednesday.
The Rubio letter, also signed by Senators Thom Tillis, Rick Scott, John Cornyn, Roger Wicker and Dan Sullivan, is part of a growing chorus of lawmakers raising questions about the deal.
On Monday, Republican Senator Josh Hawley sent a letter to Treasury Secretary Steve Mnuchin, who heads a national security panel reviewing the proposal, calling for the deal to be scuttled, if it does not allow for the “full emancipation of TikTok software from potential Chinese Communist Part control.”
It is unclear what Trump will do. White House adviser Jared Kushner on Tuesday said the White House is reviewing Oracle’s bid and a senior administration official said a decision had not yet been made.
Trump had previously made clear he sought a full-scale sale of the app to an American technology company, amid concerns among national security officials that ByteDance could provide American user data to the Chinese government. But Trump may not want to alienate 100 million-odd American TikTok users weeks before a hotly contested presidential election.
Trump has also said he is a fan of Oracle’s co-founder and Chairman Larry Ellison, one of few tech executives to openly support the Republican president.
Meanwhile, China has updated its export control rules to give it a say over the transfer of technology, such as TikTok’s recommendation algorithm, to a foreign buyer. Chinese officials have said ByteDance should not be coerced by the United States into a deal.
Oracle announced on Monday it was part of a proposal submitted by ByteDance to the U.S. Treasury Department to serve as “trusted technology provider,” to ByteDance, providing no further details on the terms of the deal.
Pandemic Has Spurred Need for Digital ID Systems to Reduce Physical Contact
Digital ID systems, a prerequisite for developing functional e-governance platforms, have been on the agendas of many emerging economies for quite some time.
However, the COVID-19 pandemic has reemphasized the importance of eIDs in providing social, medical and financial support to households and businesses.
Electronic identification allows citizens and businesses to prove their identity and access the governmental services online. It enables fully digital processes and eliminates the need for expensive and time-consuming manual operations. Such functionality has been crucial during the pandemic, especially for developing countries.
For example, in April Chile pre-enrolled millions of new recipients in social welfare programs, while Thailand, where over 28 million people applied for a new benefit for informal workers affected by the pandemic, filtered out those who had already received assistance from other projects. All of this, including the improved accessibility to medical services, has helped to mitigate the impact of COVID-19 on both the economy and the people.
“The pandemic has put electronic identification at the top of the priority lists of many developing countries,” said Mindaugas Glodas, CEO at NRD Companies, a global IT consortium specializing in e-solutions developing and consulting. “It has become a necessary component of digital transformation initiatives for governments around the world, ensuring transparency, security and efficiency of e-public services they are eager to deliver to citizens. The importance of eIDs will only grow in the coming years.
“However, while economies are steadily moving towards digitization, more than a billion people, half of them in Africa, still lack basic unique IDs—a precondition for citizens to exercise the range of human rights set out in international laws and conventions. In the absence of identification systems, people have difficulties opening bank accounts, voting, obtaining formal employment and accessing education or healthcare, while states themselves struggle with government administration, tax collection, response to emergencies, disasters and epidemics, border management and security,” said Mindaugas Glodas.
One of the developing nations that has recognized the importance of unique and digital ID systems is Samoa, previously one of the least digitized countries in the world. Working together with NRD Companies, the Polynesian country has been determined to bring its people an accessible and highly secure identity management system. When the pandemic first hit, the Samoan government decided to continue with the consultancy project remotely even in unfavorable circumstances—a move that speaks to the urgent need for innovation. The new project is expected to help support the economic recovery and serve as a foundation for a digital government platform.
According to Vaidotas Ramonas, a digital identity, electronic signature and trust services expert, identification is the basis for building inclusive societies, where every individual has access to services provided by the state with no one left behind. Once countries have implemented unique ID frameworks, the next logical step is to introduce digital ID systems. There are multiple paths governments can take to initiate and encourage the use of eID platforms.
“The government can start providing eID services by, for example, digitizing some of the most widely-used, costly or inconvenient-to-use public services—ice-breakers, as I call them,” said Vaidotas Ramonas. “Digitization would make the services cheaper, easier and faster to use, which could possibly attract more people to try them out. Also, the government can simply announce, independently, that some service will be available only through e-government for which the citizens will need to set up eIDs. It is possible that at first there will be some discontentment, but experience shows that people eventually see that eID saves time, money and energy, and later refuse to give it up.”
As emerging nations tackle the COVID-19 pandemic and rebuild their economies, they have a unique opportunity to use the crisis as a springboard and introduce innovative digital solutions. With all of the advantages it brings to the table, building unique ID infrastructure is a good place to start a journey toward national eID platforms.
NRD Companies, with the support from its global partners—such as the World Bank, AfDB, European Commission and others—often organizes govtech-related events seeking to educate policy makers and encourage sustainable change. The next event, an international webinar on national digital identity, is scheduled for September 17th. However, for those unable to attend, the company is more than happy to share a link to watch the event at a later time, thus encouraging any interested peers to reach out.
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