For Nigerians who want to start or already run their businesses, there’s a constant concern about access to supporting infrastructure, funding, and talent. These concerns are the primary causes of high failure among startups on the continent.

The startup failure rate in Nigeria reportedly stood at 61% in 2021, meaning only 39% survive. This is similar across Africa where startup failure rates range from 75% in Ethiopia and 74% in Ghana to 58.3% in Senegal and 58.7% in Kenya.

In a bid to increase the success rate and accelerate the transition to a digital economy, the Saudi Arabian government is partnering with Nigerian authorities to provide Nigerian entrepreneurs with expedited entry and support via Digital Cooperation Organization (DCO) Startup Passport.

The Startup Passport initiative, which will ultimately be between the 8-member DCO countries, rolled out initially in Saudi Arabia and Nigeria. This announcement implies that Nigerian startups building products that primarily serve the Middle East and North Africa (MENA) region are invited to build their companies from Saudi Arabia with support from the government.

This initiative was launched at LEAP, a global event for future technologies being held in Riyadh, Saudi Arabia, from February 1 to 3 and attended by leading technology corporations, global start-up pioneers, and venture capitalists.

Faris AlSaqabi, Saudi Deputy Minister for Future Jobs and Capabilities, explained that the bond between Saudi Arabia and Nigeria is fueled by the country’s movement to a digital economy.

“Nigeria is one of the key players in the digital economy. We’ve noticed you cannot do it alone, so we have to partner with other countries.”

At LEAP, “The Garage”, a world-class innovation hub to support emerging and disruptive technology-based startups was also announced. The name is inspired by the origin stories of many of the world’s top tech companies that famously started from inside garages.

Alongside other business leaders who were present at the event, Nigerian Minister of Communications and Digital Economy, Isa Ali Pantami; Chief Executive Officer of the Nigerian Communications Commission, Umar Danbatta, and other delegates were attendees.

“One lesson we can pick from Saudi Arabia’s success is that we should take away the word impossible. We should be optimistic about any plans we have for transforming Nigeria,” Pantami told TechCabal. “Whoever comes to Saudi for the first time after some years and sees the changes will appreciate what’s going on in the digital economy. Their institutions are no longer obsolete. They’re not just advanced but proactive.”

He further said that his presence at the conference is to connect with potential investors, government officials, tech giants, and even startups. “We’ve been having a series of meetings with investors on how they can come to Nigeria and invest. Some of the global tech giants are willing to come to Nigeria and establish their manufacturing plants.”

Pantami pointed out that Nigeria’s large economy, youthful population, and its exit from the recent recession are some reasons why investors are excited about the country, despite there also being a few areas to improve on.

“The first meeting I had, they were surprised that Nigeria has 6 successful unicorns and still many are coming. The fastest-growing economy is the digital sector, which played a pivotal role in exiting the country out of recession.”

Alongside the Nigerian delegation, Domineum, Tanadi, Rice Afrika and 7 other Nigerian startups were also present at the event.

All roads lead to Vision 2030
So far, investments worth about $10 billion in technology and startups were announced at LEAP.

The investments and initiatives include the launch of Aramco Venture’s Prosperity7 fund with $1 billion, and a billion dollar investment from NEOM Tech & Digital Company with a focus on future technologies. The Saudi Telecom Company announced MENA HUB, a $1 billion investment in regional connectivity and infrastructure.

Ignite, a $1.1 billion investment targeted at the creative industry, was also launched. This new program is expected to transform Saudi Arabia into a leading digital entertainment and media production hub.

To provide better internet service, WiFi 6E was launched, supported by the largest amount of spectrum available for WiFi of any country worldwide. This is accompanied by other connectivity-boosting initiatives, including the first regional trial of Low Earth Orbit (LEO) satellite technology to extend reliable coverage to remote areas of the Kingdom.

These announcements are all connected to Saudi Arabia’s Vision 2030, a drive to reduce dependence on oil and diversify its economy.

Since the drive to achieve the Vision 2030 began in 2016, there’s been considerable changes in Saudi Arabia, notably the liberalisation of its entertainment sector, provision of tourism visas and relaxing its rules for tourists as well as lifting the ban for women to drive in 2018—the last country in the world to do so.

“We’re thinking about the emerging technologies and the future of jobs for our people because soon millions of current jobs will be replaced by technology,” AlSaqabi said. “This means we’ll lose millions of dollars if we don’t adopt emerging technologies. There is no excuse to wait for the future to come, we have to go to it.”

Source

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UNLOCKING OPPORTUNITIES: THE COMPELLING REASONS TO INVEST IN INTERNET SERVICES By TecPoint Global Solutions

INTRODUCTION
The rapid advancement of technology has revolutionized our lifestyles, occupations, and modes of communication. At the heart of this revolution is the internet, playing a pivotal role in enabling these changes. As global interconnectivity continues to expand, the prospect of investing in internet service has gained substantial appeal for individuals, enterprises, and governmental bodies.
This article delves into the opportunities and factors to think about when considering investments in internet service. It sheds light on significant trends, possible risks, and crucial criteria to assess prior to finalizing internet investment decisions.

OPPORTUNITIES IN INTERNET SERVICE INVESTMENT

Growing Demand:
The global need for dependable and high-speed internet connectivity is experiencing a continuous upswing. This demand is propelled by the escalating number of interconnected devices and a growing dependence on digital avenues for activities such as communication, entertainment, education, and commerce. Consequently, the necessity for resilient internet infrastructure remains ever-present.

Digital Transformation:
Enterprises are actively adopting digital transformation, wherein internet services assume a pivotal position in facilitating this evolution. Key components of this shift, including cloud computing, remote work arrangements, e-commerce, and a myriad of online services, rely fundamentally on a steady and effective internet link. As businesses increasingly integrate these aspects into their operations, the importance of reliable internet connectivity becomes even more pronounced.

Emerging Markets:
Numerous emerging markets are still in the process of achieving extensive internet adoption, offering substantial opportunities for expansion to internet service providers. By investing in the enhancement of infrastructure within these areas, there is the potential for considerable gains as a greater number of individuals gain access to the online realm. This not only promises financial returns but also contributes to bridging the digital divide and fostering broader connectivity.

5G and Beyond:
The introduction of 5G technology holds the potential to completely transform internet connectivity, presenting ultra-swift speeds, minimal latency, and the capability to simultaneously link an extensive array of devices. Committing resources to the development of 5G infrastructure and associated technologies stands to provide remarkable advantages as this innovation gains widespread acceptance. This advancement not only signifies a leap in technological capabilities but also presents a lucrative opportunity for those invested in its progression.

CONSIDERATIONS AND RISKS:

Regulatory Environment:
The regulatory environment governing internet service providers can exhibit significant disparities across different regions. It is imperative for investors to possess a comprehensive understanding of the specific local regulations, obligatory licensing prerequisites, and conceivable hurdles that might impede market entry in diverse markets. Navigating the intricacies of regulatory frameworks is vital to making informed investment decisions and ensuring a smooth operational trajectory within each unique jurisdiction.

Competition:
The realm of internet service is characterized by intense competition, where both well-established entities and emerging contenders vie for a slice of the market pie. This dynamic rivalry has the potential to influence pricing structures and overall profitability. Engaging in meticulous market research becomes a pivotal requirement in comprehending the intricacies of the competitive terrain. By gaining insights into this landscape, investors can better strategize their approaches, ensuring they are well-prepared to navigate the challenges and opportunities inherent in this fiercely contested sector.

Infrastructure Costs:
The establishment and upkeep of internet infrastructure, such as fiber-optic networks and data centers, often entail substantial capital investments. It's imperative for investors to thoroughly evaluate the financial viability of these ventures and gauge the prospective returns they might yield in the extended duration.

Technological Advancements:
The swiftly changing landscape of technology implies that investments have the potential to become outdated if they aren't aligned with emerging trends. Remaining attuned to the latest technologies and burgeoning trends is of utmost importance to retain competitiveness in the market. This proactive approach ensures that investments remain relevant and adaptable to the ever-evolving technological landscape.

Security and Privacy Concerns:
As connectivity expands, the associated cybersecurity vulnerabilities and privacy apprehensions escalate as well. Investors must exercise vigilance regarding these risks and guarantee the implementation of sufficient measures to safeguard user data and uphold the integrity of services. This entails a responsibility to address these concerns comprehensively, fostering a secure and trustworthy digital environment for users.

FACTORS TO EVALUATE

Market Demand:
Evaluate both the present and anticipated demand for internet services within the intended market. Take into account variables like population expansion, the pace of urbanization, and the level of digital advancement within the region. This comprehensive analysis aids in forming a well-informed perspective on the potential market landscape and the future viability of internet service investments.

Infrastructure Readiness:
Examine the pre-existing internet infrastructure within the desired region. By scrutinizing the necessity for enhancing or extending the infrastructure, you can more accurately gauge the investment outlay that might be necessary. This assessment is crucial in determining the scope of potential upgrades or expansions required to align with market demands and technological advancements.

Regulatory Landscape:
Comprehend the regulatory framework that oversees internet services within your selected market. This encompasses aspects such as licensing procedures, the allocation of spectrum, and any limitations imposed on foreign investment. A thorough grasp of these regulations is indispensable in formulating a comprehensive strategy, ensuring compliance, and effectively navigating the legal landscape of the market you are entering.

Technology Roadmap:
Stay well-informed regarding the technological strides that are molding the landscape of the internet service sector. This encompasses staying updated on advancements in broadband technology, the evolution of wireless standards, and the ongoing progress in network optimization strategies. Remaining abreast of these developments is crucial to making informed decisions, staying competitive, and capitalizing on the potential efficiencies and innovations that emerging technologies can bring to the industry.

Partnerships and Alliances:
Forging partnerships with local counterparts, governmental entities, or other relevant stakeholders can expedite your entry into novel markets and furnish valuable insights into the intricacies of local dynamics. Such collaborations not only streamline your market entry but also grant you access to localized expertise, cultural nuances, and regulatory insights that are instrumental in achieving a successful and sustainable presence in unfamiliar territories.

CONCLUSION
Venturing into internet service investments presents significant prospects fueled by escalating demand, digital metamorphosis, and the emergence of novel technologies. Nonetheless, it demands a comprehensive grasp of regulatory landscapes, competitive scenarios, and the intricacies of infrastructure expenditures. Through meticulous assessment of market variables, continuous awareness of technological shifts, and the adept implementation of risk mitigation strategies, investors can strategically position themselves to harness the potential of the dynamic and continually expanding realm of internet services.

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