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Transcript/ScriptFOR USAGM SHARE
((PLAYBOOK SLUG: Nigeria Africa Fintech Investment (TV)
HEADLINE: Nigeria Becoming Destination for Africa’s Promising Tech Startups
TEASER: Huge market of dynamic, young people paint a bright picture for the future, but analysts say low living standards and flawed government policies could hamper opportunities.
PUBLISHED AT: 05/17/2022 at 2:10pm
BYLINE: Timothy Obiezu
CONTRIBUTOR:
DATELINE: Abuja, Nigeria
VIDEOGRAPHER:
VIDEO EDITOR:
SCRIPT EDITORS: BR, DLJ, LR
VIDEO SOURCE (S): VOA,
PLATFORMS (mark with X): WEB __ TV __ RADIO __
TRT: 2:48
VID APPROVED BY: MAS
TYPE: TVPKG
EDITOR NOTES:))
((INTRO: ))
[[Nigerian startups, mostly in the financial technology sector, attracted nearly a quarter of the $5.2 billion invested in African startup companies last year, according to the African Private Equity and Venture Capital Association (AVCA). Timothy Obiezu in Abuja profiles the mobile money service CrowdForce to examine what is attracting investors to Nigeria.]]
((NARRATOR))
In February, the Nigerian technology startup CrowdForce announced a big break.
It had received $3.6 million from investors to expand its financial services operations to many more underserved communities.
((Tomi Ayorinde, CrowdForce CEO)) ((English, 18 secs))
((Mandatory Zoom))
"We were looking to scale faster and really gain market share and what we're doing was also very impact-related because we're creating jobs, avenues for people to make extra income in their communities.
((NARRATOR))
CrowdForce was initially launched as a data collection company seven years ago. But the company completely overhauled its business model when it realized it could fill a need for bank accounts.
((Tomi Ayorinde, CrowdForce CEO)) ((English, 19 secs))
((Mandatory Zoom))
"When we collected data of 4.5 million traders what we saw was, a lot of them didn't have bank accounts and the ones that have bank accounts had a very tough time accessing the cash that was sent to them. That's when we kind of realized that there's a bigger problem to solve here.”
((NARRATOR))
Around 60 percent of Africa's 1.2 billion people lack access to banks or financial services, say experts.
It’s a big problem that technology startups in Africa are trying to fix, says the African Private Equity and Venture Capital Association, or AVCA.
In a recent report, the industry group said African startups attracted $5.2 billion from venture capital last year – and that West Africa – led by Nigeria – accounted for the largest share of investments.
AVCA says investors are looking to cash in on Africa's huge population of young people.
((Alexia Alexandropoulou, African Private Equity and Venture Capital Association – In English))
((Mandatory Zoom))
"Africa has the most youthful population in the world and as the proportion of skilled labor increases, we expect to see a surge in human capital.”
((NARRATOR))
AVCA says increased internet penetration in Africa and more favorable government policies are also contributing to increased investments in financial technology services, or Fintech.
But there are obstacles to overcome, such as weak currencies and policies, say some experts.
((Louis Dike, Digital Marketing Expert)) ((English 14 secs))
((Mandatory Zoom))
"It's still made up of virgin markets. The standard of living is quite low, and our regulations haven't been consistent in recent times,”
((NARRATOR))
Yet with new talents emerging in technology, more startups with big goals are emerging in Nigeria and elsewhere in Africa.
((Timothy Obiezu, for VOA News, Abuja, Nigeria))
NewsML Media TopicsEconomy, Business and Finance
NetworkVOA
Embargo DateMay 17, 2022 14:17 EDT
Brand / Language ServiceVoice of America - English
