Wale Oyepeju, co-founder and chief technology officer at Vendease, an online marketplace for African food service businesses, in this interview with BusinessDay’s Bunmi Bailey, shares insight on the promising career opportunities that Nigeria’s tech sector offers youth and ways to bridge the skill gap in the sector.
Over 380 tech startups in Nigeria have raised $2bn in the past seven years, more than any other African country, has this funding really translated into growth in the economy?
It is clear that Nigeria’s technology industry is significantly impacting its economy. This can be evaluated by looking at various metrics, for example, per capita income and the industry’s contribution to the Gross Domestic Price (GDP).
According to the most recent data publicly available, the Information and Communications Technology sector contributed 18.4 percent to Nigeria’s GDP in the second quarter of 2022, compared to its 14.1 percent in Q1 2020.
This represents a growth rate of 6.6 percent from Q1 2022. Additionally, the Nigeria Communications Commission, reports that this sector has provided approximately 2.5 million jobs in the last decade, highlighting the industry’s impressive impact on a national level.
Furthermore, it is worth noting that the oil sector, which used to dominate the country’s GDP, fell to 6.3 percent in the second quarter of last year, a lower than 7.4 percent in the second quarter of 2021 and 6.6 percent in the first quarter of 2022.
Another pointer to the industry’s growth is the amount of funding it has attracted. A recent report by Disrupt Africa noted that tech financing in Nigeria exceeded what any other African country received in the period, adding that Nigeria is the most popular investment destination on the continent.
At least 481 tech startups across Nigeria were in operation as of September 2022, employing over 19,000 people. The technology industry in Nigeria is making a significant impact on the country’s economy, and the future looks bright for the sector.
Let’s talk about the ‘Japa’ phenomenon. Some say it is bad for the sector, others disagree. What do you think?
The migration of Nigerian workers to developed countries is a complex issue that has both positive and negative impacts on the tech industry in Nigeria. Historically, many Nigerians have sought opportunities abroad due to the lack of job opportunities and economic stability at home.
However, as the Nigerian tech industry has grown, we have seen more highly skilled workers leaving the country to pursue opportunities abroad. While this can be seen as a loss to the Nigerian tech industry, it also presents several opportunities.
It has encouraged companies to improve their management, sustainability, and employee retention practices to retain top talent.
Additionally, the outflow of talent has created a level playing field for those who stay in Nigeria, providing them with more opportunities for advancement. Another positive aspect is that it has created a network of highly skilled and experienced Nigerian workers abroad who can contribute to developing the tech industry back home.
These individuals are often well-positioned to take on leadership roles in Nigerian companies and help to drive the industry forward. However, it is essential to note that mass talent migration can also have adverse effects, such as a shortage of skilled workers and a brain drain.
To mitigate these adverse effects, we need to encourage people to contribute value wherever they find themselves and create a supportive environment that empowers them to do so.
This can include strengthening the existing policies that promote the development of the tech industry in Nigeria, such as providing access to funding and resources, creating a favourable business climate, and investing in education and training programs.
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A recent Boston Consulting Group study found 76% of African digital employees are willing to relocate abroad compared with 55% of their counterparts abroad, what is driving this trend and do you think needs to be done about it?
The study’s outcome is not surprising given the current state of many African countries. Despite the continent’s rich resources and growth potential, many African countries still grapple with issues that developed countries have been able to address for decades.
One of the significant challenges facing many African countries is a lack of basic infrastructure and systems that could improve citizens’ living standards. For example, many African countries still operate on a cash-based system, which makes it difficult for people earning just above average to afford necessities like cars and houses.
Additionally, political instability and economic uncertainty in many African countries make it difficult for young people to make long-term plans and achieve financial security.
Furthermore, the lack of access to essential services like healthcare, education, and transportation can also be a significant factor contributing to the migration interest among Africans.
These issues make it difficult for many people to improve their standard of living in Africa. They are willing to risk relocating to developed countries, despite the challenges they may face, such as high taxes.
Overall, migration is a complex issue; not all Africans are interested in leaving their countries. The data suggests that many Africans seek better opportunities and a higher standard of living abroad.
To mitigate this trend, we must focus on addressing the underlying issues that make it difficult for people to improve their standard of living in Africa. This can include investing in infrastructure, promoting economic and political stability, and creating opportunities for people to improve their standard of living.
How can the government and other stakeholders leverage tech innovation for job creation?
Nigeria’s current unemployment rate of 33.3 percent is one of the highest in the world. This is a significant concern, leading to social and economic challenges such as poverty and crime. The government has taken commendable steps to address this issue, such as passing the Startup Bill, which aims to support small businesses and entrepreneurs.
The government should continue to focus investments in the country’s technology industry, as it has the potential to create many jobs and drive economic growth.
Nigeria has a rapidly growing tech sector, with many young entrepreneurs and startups. By supporting this industry through policies and investments, the government can help to create more jobs and opportunities for young people.
We must prioritise education. Many young people in Nigeria need more resources to access higher education. By reducing barriers to higher education and updating curricula to prepare students for the global job market, the government can help increase employability.
Based on your experience as a co-founder of a major tech startup,what can be done to close the technology skill gap?
The technology industry is constantly evolving, and the demand for skilled professionals is increasing. However, there is a need for more workers with the necessary skills to meet this demand. One approach to closing the skill gap is to focus on talent development.
This can be done by encouraging interest in technology from a young age through curriculum adjustments at secondary and tertiary levels.
Introducing students to technical subjects and skills will prepare them to enter the workforce with the knowledge and skills necessary to succeed.
Another critical aspect of talent development is providing internships to allow students to gain relevant experience working in a tech firm. This will help them understand the day-to-day operations of the company as well as give them a better idea of what to expect when they enter the workforce.
Some of the best developers in Vendease today went through our internship program. Some are still even in University, while others graduated recently.
Additionally, we need to encourage knowledge-sharing among experts in different technology fields to educate and inspire young people to pursue careers in technology. This will help close the skill gap and attract the best and brightest talent to the industry.
Vendease connects food businesses directly to farmers, what impact is your company having across Nigeria’s food supply chain?
One of the main issues we identified was food waste, which was caused by a need for more data, insight and visibility from both the demand and supply sides. Our business and proprietary technology solutions address these issues by providing insight-driven transparency, data and analytics for our users, which allows them to optimise their business operations and reduce waste.
We ensure that food is available when and where it is needed, reducing waste. Additionally, our platform guarantees payment for farmers and other suppliers, which makes them run a profitable venture and again with the attendant impact on food wastage.
Before, farmers, for instance, often faced the risk of being unable to sell their products and selling at a lower price. With Vendease, farmers can now access retailers directly, cutting out intermediaries who often purchase at lower prices. This direct access to the market allows farmers to get the best price for their produce and reduces food waste by ensuring that the product is sold at a fair price.
We also help the supply side by sourcing the best-in-class products, improving customers’ quality of life, to ensure that the dining experiences of our entire customer’s clientele enjoy premium food quality on every visit to their favorite restaurants.
