Welcome to this week’s edition of the RoundUp. This week’s highlight is the passage of the amended Company and Allied Matters Act (CAMA) of 1990. Thanks for reading, sharing and recommending the RoundUp.
- News broke on the planned exit of South Africa’s retail business, ShopRite from the Nigerian market. It joins a growing list of South African businesses to leave the Nigerian market after unsuccessful try. Link
Why this is Important: This affirms a fast diminishing disposable income spend on the part of the Nigerian consumer. In addition to this is the effect of the lockdown that has seen movement restrictions to public places reduced.
With an impending local takeover, we should see a leaner retailer with possible delivery services. We could see branch contractions in some unprofitable locations and of course, a reduction in headcount.
However, there has been some optimism that this presents a growth opportunity for smaller, indigenous retail chains. Time and the market will have the final say.
- Serial entrepreneur and founder of Ulesson learning app, Sim Shagaya posted online an impressive growth of the application’s paying customers, showing a 4x impressive run since monetization began around this year’s March. Link
Why this is Important: Although it did not segment or show locations of these paying users, this data indicates the African market is warming up to the idea of online learning. Following that is the effect of the lockdown and adoption of a timely and affordable alternative to WAEC examination preparations.
- Bike hailing business SafeBoda has reached 250k rides since operating in Ibadan, Nigeria. This is after it crossed 100k rides within 3months of operation. Link
Why this is Important: To achieve this in a relatively ‘non-techy’ city is a huge milestone. Recently, the Nigerian tech ecosystem have chorused the needed for alternative markets beyond Lagos with kinked regulations and high operating cost.
To put into perspective, these results have come in a time when the tech savvy and friendly demography are at home. Importantly, SafeBoda may have validated Ibadan as a market for tech-enabled businesses.
- Twitter is to commence labeling of media accounts affiliated to governments, especially those ‘outlets where the state exercises control over editorial content through financial resources, direct or indirect political pressures, and/or control over production and distribution’ This is expected to start with the permanent members of the United Nations Security Council. Link
Why this is important: A major steps towards holding governments accountable via its media-dependent/leaning agencies. With plans to widen the scope of countries covered, Twitter’s censorial powers is expected to increase as it becomes a choice option for media engagements.
- After about 30yrs, the President signs the Amended Company and Allied Matters bill into law. Link.
Why this is Important: The new law accepts electronic filing, shareholder transfer and e-meetings. Thereby, saving material and manhours lost on physical filings. For small start-ups, the law has lowered their overhead with exemption in relation to the audit of accounts in respect of a financial year.
Importantly, a laudable provision of the law allows a single member/shareholder companies. With a growing number of entrepreneurs, this lowers the barrier to company registration and ownership.
We Think You Should Read This
PlentyWaka Expands to Abuja: Link
Zoom Adds Exciting Features: Link
Instagram Launches Reels, Tiktok Competition: Link
MTN Launches Financial Marketplace API: Link