Telecoms evolution in Nigeria: An Idea

A few years ago this was the norm. If a woman was told that her daughter in America wanted to speak to her at 7 pm, she would leave her house at dawn to sit and chat at the neighbor’s house where she would receive the call. About the time the call was expected, the padlock that clipped the dial to prevent unauthorized use was removed. When the phone finally rang, she would lift the phone carefully. She would listen painstakingly for the almost inaudible voice of her daughter but after saying hello and may be a few words, the line would cut off. The attempt by the child to call back was often futile; but the woman would happily give up because she was reassured that her daughter was alive. She waits till the next month for another try. Last year, at my mother’s birthday, my siblings and I sang the birthday song on a conference call from different cites of the world. Things have changed.

Some time ago, someone thought things could be better than it was and chose to do something about it. Someone thought that one could speak to another person in a distant location. Another person thought that making those calls did not have to be wires. Yet another thought could be digital. One person thought it could be portable. Thinking did not stop there. Someone thought making calls could add value hence profitable. Someone thought it could be a business. These thoughts birthed the revolution we have today. As important as technology was to the development of telecoms, the profit angle was critical to its success. In Nigeria, the profitability of NITEL was not evident but with the advent of Econet Wireless (now Celtel) closely followed by MTN, MTEL and later on, Globacom, we have what we see. The evolution of phones from one per community to dozens per household came because somebody had a thought and did something about it. Both the technician and the entrepreneur thought and did something. What are you doing about that idea?

Mali gets US$46.4m World Bank credit

"The project supports the development of a vibrant and diversified commercial agriculture as a means to move away from subsistence agriculture, which is often synonymous to poverty for a majority of rural households," said Patrick Labaste, the World Bank task team leader for the project.
"As a result, the project will help reduce the excessive dependence of the Malian rural economy on cotton and rice cultivation. It will improve productivity in high value crops, reduce risks for small farmers through adapted irrigation technology, and diversify rural incomes with improved marketing channels for high value agricultural and livestock products," Labaste added.
The first component, demonstration and dissemination of irrigation, post-harvest and value adding technologies (US$10.35 million), will support the demonstration and dissemination by private sector providers of low-cost, simple and adapted techniques and technologies to improve the production, productivity, processing and marketing of selected high value agricultural products.
The second component, improvement of performances of agricultural supply chains (US$7.07 million), is aimed at improving the organisation and performance of agricultural supply chains, reinforcing private sector capacities to respond to market opportunities and improving the competitiveness of agricultural products, both traditional and new high value products.
The third component, access to financing (US$2.93 million), will facilitate access to capital and financial services for the various private actors and operators involved in the agricultural supply chains and strengthen the current agriculture credit market in Mali.
The fourth component, market-oriented infrastructure (US$21.49 million), will finance an investment program aimed at improving basic commercial and communication infrastructure, in order to improve linkages to markets and reduce transaction costs.
The last component of the project, management, monitoring and evaluation (US$5.6 million), will provide resources to ensure adequate project management, particularly overall co-ordination, financial management and procurement of goods and services, as well as monitoring of implementation and evaluation of results.

"The project supports the development of a vibrant and diversified commercial agriculture as a means to move away from subsistence agriculture, which is often synonymous to poverty for a majority of rural households," said Patrick Labaste, the World Bank task team leader for the project.
"As a result, the project will help reduce the excessive dependence of the Malian rural economy on cotton and rice cultivation. It will improve productivity in high value crops, reduce risks for small farmers through adapted irrigation technology, and diversify rural incomes with improved marketing channels for high value agricultural and livestock products," Labaste added.
The first component, demonstration and dissemination of irrigation, post-harvest and value adding technologies (US$10.35 million), will support the demonstration and dissemination by private sector providers of low-cost, simple and adapted techniques and technologies to improve the production, productivity, processing and marketing of selected high value agricultural products.
The second component, improvement of performances of agricultural supply chains (US$7.07 million), is aimed at improving the organisation and performance of agricultural supply chains, reinforcing private sector capacities to respond to market opportunities and improving the competitiveness of agricultural products, both traditional and new high value products.
The third component, access to financing (US$2.93 million), will facilitate access to capital and financial services for the various private actors and operators involved in the agricultural supply chains and strengthen the current agriculture credit market in Mali.
The fourth component, market-oriented infrastructure (US$21.49 million), will finance an investment program aimed at improving basic commercial and communication infrastructure, in order to improve linkages to markets and reduce transaction costs.
The last component of the project, management, monitoring and evaluation (US$5.6 million), will provide resources to ensure adequate project management, particularly overall co-ordination, financial management and procurement of goods and services, as well as monitoring of implementation and evaluation of results.


The above is an article from Business in Africa Online....Mali gets US$46.4m World Bank credit

It highlight a good plan for addressing poverty. It is not just money. It includes careful planning and good strategy...

My Thoughts.

Getting capital from banks

Imagine this…
A stranger man knocks on your door and you answer. He introduces himself and he asks to speak with your father. You invite him into your father’s study where he sat till your father joined him. After a little while, your father invites you to join in the meeting. A cursory look at him shows he’s a perfect gentleman. He is neatly dressed, with a good haircut. His English is impeccable and his manners are flawless. However, these features are not a fascinating as the business idea he’s discussing with your father. He ends his speech with a request for a loan to execute this idea.

Your father had a thoughtful look on his face as he asked the man to gentleman to excuse you. He wanted to talk with you alone. While the man sat in the waiting room down the hall, your father turns to you and asks thoughtfully, “Do you know this man?” You said, “No, I thought you knew him.” “I have seen him a few times at the bar, walking along the street, sometimes at the church but I didn’t know his name until today.” He continued, “I don’t have any money of my own, the only money I have is the one my friend kept with me for safe keeping. Should I borrow him?”

What would be your advice?
If my guess is right, as a wise counsel to the father you won’t tell him to lend money to a complete stranger. That would be because you don’t know him even thought he has what seems like a lucrative idea.

The above story is the story of many entrepreneurs who go to banks when they have an idea. The only twist is that it is told from the bank manager’s son’s perspective. The reason bank managers don’t lend money to many young entrepreneurs is that they don’t know them. Now, if your idea was good enough he may have lent you some of his own money but who would take the risk with another person’s money.

Getting money from banks
Start with a savings account – a habit of savings is crucial. It is not common practice in the developing countries so it is easily noticed. Ensure it is regular and consistent no matter how small. Leading banks monitor trends of their customers – they discuss them. If they know you save regularly they is greater trust that you will bring the payment installments regularly.

Have a relationship with the bank and the manager. If you have started something, talk to the bank manager about it. If possible, invite him to your factory; and let him take a walk through. Ask for his recommendations for professionals who can assist you with your business development.

Develop an accounting system that is consistent with the level of your business. It is crucial that records are kept of financial transactions, record in a logical sequence and summarized neatly so that it can be interpreted intelligently. Many small businesses that has handled millions, need a few thousands to buffer an enlargement, but they don’t get it because proper records of past feats were not kept.

Understand their language. The banking world has its lingo. Learn it, use it.
This principle that applies to both investors, venture capitalist and money lenders is that they are not as concerned with how you want to spend the money you want to collect but how you are going to make the money (and pay them), the period within which this will occur and the probability that it will be paid per schedule.

Presently, the banks have much cash to give out. Government regulations support such too. However, the will give only to those they can trust. See to be that person – they will run after you with their funds. All the best!

F1 and Forums: the case for smecircle.org
From the earliest days of my business of designing and supporting websites, I have had manifold kinds of problems. Incidentally the websites from which the CMS solutions or other application software have not as been helpful to me as forums. Thus, when I face a challenge and google my request, I would head first for the forums. Usually, someone has had the same challenge before (there is nothing new under heaven). Such a person, sharing from personal experience provides a most pragmatic answer. Other people usually provide opinions on the same matter to buttress what has been said or proffer an easier or better way. Together, everyone indeed, achieves more.

I asked myself, could this be brought to the business circles? There have been several times when I have been stuck in search of a technical or management solution in which folks that can be reached immediately in my vicinity do not have solution. Judgment is made based on the limited resource and often times it produces limited gains. Nevertheless, I am confident of two things: someone else has been in the same predicament before and someone next door has a solution that works better. Can we share our solutions and grow faster?

IF you have my experience and I have yours, I won’t repeat your mistakes and you won’t repeat mine. Together, we’ll move one step further than where would have been if we walked alone. This is why the smecircle is created. When you join by posting a question or answering one, the circle grows bigger, and we’ll cover more areas. Join the circle, expand your scope, and move on to higher grounds, the sky is not your limit!

So you want to be an entrepreneur?
It is a good thing to desire to be one but not all of us are called to be entrepreneurs (point men) but it's required of all to be enterprising. We are all required to create wealth by adding value to people specifically and the community in general.

(give an example of yourself who is not an 'entrepreneur' but understands in stocks)


Now for those who are called, there are five things one should be aware of.

1. Technical Knowledge is not sufficient. The understanding of the business and other financial skills is important if not more.

For example, the primary function of a secondary school to teach. Thus, if one wants the activities of a principal/proprietor in a typical week.

Hiring /firing teachers
Discipline student & sometimes teachers, PTA meetings, board meetings , Staff Issues, events & project mgt e.g inter house sports, class building,
Financial accounting, managing the school for profitability marketing the school staff/ student welfare staff/student recognition team building among staff, mentoring/coaching. What percentage is teaching or is a BSc in Education required?

Do u now understand why you don't see your VC so often?

In a small biz you will need more than just technical skills (ability to sew, cook, repair a car, farm etc) to be a leader in the sector. You will need business skills of people/client mgt, an understanding of the basics of accounting, budgeting, goal setting, the importance of advertising, the fundamentals of selling, HR. People Relations etc.

The most fundamental attitude to be positioned for success as an entrepreneur is a commitment to increasing your knowledge base. That’s the only way to stay on the Cutting edge of life & biz.

2. Be An Apprentice
Do some form of Internship. Go there not only for the technical skills but to understand how the biz runs ,what kind problems your boss faces & how does he handles it. Always consider too how will I handle this if it were you. This is the key edge of the Ibo people in Nigeria. The learn how to sell TV, videos, etc. One would think that buying and selling should not be so much of a challenge. But in the intership, they learn where things are cheap, where to buy, when and to whom they should sell. They learn the business.

3. Manage your boss' biz. In your internship manage your boss’ business as if it were yours. Do your best with it. Consider evey cash spent as if it were deducted from your salary asking if it is really a wise investment. Now if you do it well God will give you yours Luke 16:12


4. Don’t let go of your dreams
There is always the tendency after receiving a salary at a bank or in an Oil company for two months to forget where you always wanted to go. Don’t be distracted in the internship. Don’t forget your dreams.

5. God is the author of true success in any Endeavour. You won’t go far without him. You may go as far in this world if you adhere to the principles laid in his word but you won’t go far in the world to come.