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Online Sales to Hit $75bn in Africa by 2025

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  • Online Sales to Hit $75bn in Africa by 2025

Growing online shopping in Africa is shifting consumers’ purchase pattern and could soon account for up to $75 billion of the continent’s total retail sales by 2025, according to a report by McKinsey Global Institute.

The report identified e-commerce and Financial Technology (Fintech) as two of Africa’s biggest growth opportunities and highlighted the mobile technology market as the driving force behind the two sectors.

“More than half of urban African consumers already have Internet-capable devices and this number is increasing. Online shopping in Africa could account for up to $75 billion in retail sales by 2025,” the report said.

In Nigeria, the drop in the total currency in circulation was attributed to the surge in electronic transactions through the use of Point of Sale terminals.

The Managing Director, Global Accelerex, Mr Kayode Ariyo, explained that because people are getting more comfortable with card payment, electronic payment will continue to rise.

Ariyo stated: “Retailers and merchants have come to terms with it. In the past, we had to appeal to merchants to use the PoS channel. But now, we have a trend where merchants are the ones calling and asking for PoS terminals.

“The major factor that has contributed to that is the acceptance. People are getting more comfortable with the card payment. The adoption of electronic payment is on the increase by consumers.”

It should also be recalled that PayPal ranked Nigeria the third largest mobile shopper worldwide in 2015.

According to the payment giant, mobile shoppers spent $610 million using PayPal alone in 2015 and estimated that number to jump to about $819 million in 2016.

Since that declaration, a number of fintech companies have broadened their operations and further deepen online payment service in Nigeria and across the continent as a whole.

African Fintech and e-commerce startups are beginning to attract global investors.

Recently, Andela raised $100 million to expand its operations and offerings, while Jumia and Konga are perfecting plans for an Initial Public Offer of their individual shares, estimated at about US$4.7 billion combined, in 2019.

Effective and efficient mobile payment services are aiding e-commerce and fintech growth across the continent. Still, consumers think more need to be done on the qualities of products being delivered, the reason some preferred to visit stores after one or two bad experiences.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Again, IBM Revenue Plunges for Third Consecutive Quarter

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IBM Revenue Declined for a Third Straight Quarter in the Third Second Quarter

IBM revenue plunged for a third-straight quarter in the period ended September 30, 2020, according to the latest financial results of the company.

The company’s revenue declined by 2.6 percent year-on-year to $17.6 billion in the quarter, while revenue from IBM Global Business Service declined by 5 percent to $4 billion with Global Technology Services unit recording a 4 percent decline in revenue to $6.5 billion.

Again, the Systems segment that includes mainframe hardware and software experienced a 15 percent decline in revenue to $1.3 billion. The company’s global financing revenue plunged by 20 percent to $273 million.

However, revenue from Cloud and Cognitive Software segment that includes Red Hat rose by 7 percent to $5.6 billion.

The strong performance of our cloud business, led by Red Hat, underscores the growing client adoption of our open hybrid cloud platform,” IBM CEO Arvind Krishna said in a statement. “Separating the managed infrastructure services business creates a market-leading standalone company and further sharpens our focus on IBM’s open hybrid cloud platform and AI capabilities. This will accelerate our growth strategy and better position IBM to seize the $1 trillion hybrid cloud opportunity.

The decline in earnings was in line with the company’s pre-announcement that COVID-19 would impact its overall performance this year.

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Paystack Stripe: Stripe Pays Over $200 Million to Acquire Nigerian Paystack Startup

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Stripe Acquires Paystack for Over $200 Million

Stripe, American financial services, and online payment processing for internet businesses headquartered in San Francisco, California, United States, is in the process of acquiring Paystack, a Nigerian based online payment processing startup.

While the terms of the deal are not in the open, sources familiar with the deal said Stripe is paying over $200 million to acquire the Nigerian startup.

Paystack presently has about 60,000 customers that cut across small businesses, fintechs, schools, online betting companies and larger corporations. The sources said the plan will be to continue operating independently in Nigeria and the rest of Africa. Suggesting this is one of the reasons Stripe raised $600 million in funding earlier this year to expand its API-based payments services into more regions.

There is enormous opportunity,” said Patrick Collison, Stripe’s co-founder and CEO, in an interview with TechCrunch. “In absolute numbers, Africa may be smaller right now than other regions, but online commerce will grow about 30% every year. And even with wider global declines, online shoppers are growing twice as fast. Stripe thinks on a longer time horizon than others because we are an infrastructure company. We are thinking of what the world will look like in 2040-2050.”

Shola Akinlade, the CEO of Paystack said the deal will help the company expand in Nigeria and beyond. “Paystack was not for sale when Stripe approached us,” said Akinlade, who co-founded the company with Ezra Olubi (who is the CTO).

For us, it’s about the mission. I’m driven by the mission to accelerate payments on the continent, and I am convinced that Stripe will help us get there faster. It is a very natural move.

The deal is expected to boost the attractiveness of Nigerian startups, especially the fast-growing fintech industry.

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Facebook, Namibian Blood Transfusion Service (NamBTS), Others Partner to Boost Blood Donations in Namibia

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Facebook, Others Partner to Improve Blood Donations in Namibia

Facebook Inc, the world’s leading social media giant, has partnered the Namibian Blood Transfusion Service (NamBTS) and the Ministry of Health and Social Services to launch a new feature to encourage people to donate blood.

This means, starting from today people between the ages of 18 – 66 now have the option to sign up as blood donors on Facebook, be notified when blood donor centres near them have an urgent need for donations and invite friends to donate as well.

Accordingly, the same feature was launched in Chad, Guinea and Mali today, meaning Facebook blood donating feature is now available in 12 Africa nations. Other African nations enjoying the feature are Senegal, Burkina Faso, Egypt, Côte d’Ivoire, Kenya, Niger, Zimbabwe and South Africa.

The program that was first launched in 2017 has now attracted more than 70 million people who have signed up on Facebook to donate blood through partnerships centres around the world.

Speaking on the initiative, Kojo Boakye, Public Policy Director Facebook Africa, said: “COVID-19 has changed how and where people can give blood, causing countries around the world to experience shortages of voluntary blood donations at this critical time. In keeping with our Mission, we recognized the role Facebook can play in connecting people that want to donate blood with opportunities to do so. The partnership with the Namibian Blood Transfusion Service (NamBTS) and Ministry of Health and Social Services is such an important one. We strongly believe it will enable Namibians to make a positive impact to the blood donation ecosystem in the country.

Zita Tobin, Manager, Donor Recruitment and PR for NamBTS said: “We are truly excited by the partnership with Facebook the tool will assist us bolster our blood collections during the pandemic and beyond, as only 1% of the population donate blood”

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