The Next Wave: ‘Account for me the hazards’


Per KPMG, the 2020/21 top 10 substitute risks in Nigeria are as follows: regulatory; financial and monetary policy; foreign switch volatility; cybersecurity; political; technology infrastructure; customer attrition; abilities shortage/attrition; substitute continuity; governance.

Regulatory possibility has turn out to be more mighty over time. It modified into number 7 in KPMG’s 2016 evaluate and rose to third space in 2018. It’s now the no 1 possibility for inner most companies, especially those in financial products and companies. 

The possibility hierarchy for tech, media and telecommunications companies differs from the long-established top 10 above. Customer attrition, cybersecurity and foreign switch volatility risks are most urgent, while regulatory possibility modified into ranked sixth.

Olanrewaju Odunowo/TC Insights

Let’s present an explanation for that 77% of the companies in this evaluate bear an annual turnover of over $15 million and 48% bear over 300 employees. Most Nigerian startups are no longer at these marks, as a consequence of this fact the likelihood maps may perhaps per chance well per chance no longer be an precise match.

Nevertheless, these signposts give a sense of what VC’s can request after they concept to invest with the goal of reaping multimillion-dollar returns.

AfricArena projects that VC funding in Africa shall be between $2.25 billion and $2.8 billion this year. That shall be a huge recovery from the $1.43 million in 2020 (according to Partech). 

Nigeria raised $307 million of that 2020 total. Will the nation preserve its perch at the end with a putatively riskier ambiance?

With Egypt on the march, most most seemingly no longer. But Yoneyama, who has a original $18 million to invest at some stage in Africa, says “market seemingly and tenacity of Nigerian founders surpass such risks, so we’ll preserve investing.”

And why no longer? Twitter bans and antagonistic governments attain and prance but the optimism for enterprise in Africa will most efficient amplify. Exits are no longer yet long-established but one or two ventures bear paid dividend. But those rewards are for those who, looking at the hazards above, unruffled dive in.