Connect with us

General

Nigeria’s GBS Market at $286.8m, S/Africa at $4.7bn, Egypt at $4bn

Published

on

Africa GBS Market Report global business services

By Modupe Gbadeyanka

There are strong indications that in 2023, the global business services (GBS) market in Africa will worth $19.8 billion, higher than the current value, $15.1 billion.

According to the 2021 Africa GBS Benchmarking and Market Report by Knowledge Executive, the African continent will play a major part in the sector in the future because of its vast labour.

In the report, it was stated that business process outsourcing (BPO) and information technology outsourcing (ITO) are at the forefront of Africa’s rapid growth rates.

This growth, it said, is bolstered by multiple factors, including improved economic governance, relative political stability, an abundance of educated youth within the continent’s labour pool, comparatively lower salary and labour costs, in addition to focused efforts from African policymakers to support this crucial sector.

The report stated that the past year has accelerated outsourcing adoption to reduce costs and maintain revenue across the globe – and Africa has emerged as a significant beneficiary.

It was disclosed that the continent was in the developing stage of the GBS lifecycle, but already showing signs of global competitiveness and rapid maturity.

According to the report, South Africa is the continent’s largest GBS player by market share (domestic and international), valued at an estimated $4.7 billion.

The local sector employs over 261,082 domestic and international service workers from the country’s sizeable English-speaking workforce with competencies across most outsourcing services, including digitally-enabled contact centres and customer experience lifecycle management services. Surveyed enterprise executives rated the country best for contact centre voice, back-office processing and customer administration service delivery.

Egypt has the second largest domestic and international GBS market share on the continent, valued at $4 billion (excluding IT services).

The country offers a highly-skilled, multilingual, diverse talent pool, with competitive labour costs and the second-largest youth population in Africa (36.3 million citizens aged between 18-35 years). The native Arabic language also opens Egypt to the Arabic market of 300 million consumers.

Africa’s largest economy by GDP ($448 billion), Nigeria, boasts a well-established ICT sector – the largest on the continent.

This feature serves as an excellent foundation for developing the country’s GBS market, which is already valued at an estimated $286.8 million and employing approximately 16,540 workers.

Coupled with a focus on sector-specific skills and education, the country stands poised to take advantage of the largest population of English speakers in Africa and the highest number of youths aged between 18-35 years in Africa (53 million).

Smaller nations are also capitalising on this increasing international demand. Rwanda is an emerging GBS market with a large population of English and French speakers able to service English and Francophone countries. It offers reliable and advanced communications infrastructure with 95% LTE network coverage.

Botswana is another emerging GBS location. The country boasts macroeconomic stability and offers attractive investment incentives and a growing pool of educated, English-speaking workers.

Senegal has become a popular French alternative market for BPO services. Ghana boasts a scalable pool of English-speaking and computer literate talent and a growing youth population. Zimbabwe has bold GBS development plans based on its highly educated talent pool for niche services.

Investing and buying on the continent continues to be a venture filled with potential and undiscovered returns. And as more international businesses look to do so, insights such as those gleaned from the Africa GBS Benchmarking and Market Report will be invaluable in making informed decisions on outsourcing, co-sourcing or expansion.

The report said it got its findings from interviews with over 140 global enterprise executives from North America and European organisations that outsource, or plan to outsource, to Africa.

In addition, profiling surveys were conducted on over 500 GBS service providers and delivery centres across 19 African countries. These markets represent a mix of mature, emerging and nascent GBS locations in Africa that now serve as key locations for global and local investors and buyers.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

Click to comment

Leave a Reply

General

Power Outage in Nigeria as National Grid Collapses

Published

on

national grid collapse

By Aduragbemi Omiyale

Nigeria is currently experience a cut in power supply after the national grid collapsed for the 11th time in 2024.

This is the first time in over a month as the last time the nation witnessed a nationwide shut down in electricity supply was on November 7, 2024.

Before then, the country was experiencing an incessant collapse of the grid, which prompted the federal government to set up a team to address the issue.

However, just when Nigerians were thinking they will not witnessed another national grid collapse in the year, it issue reared its ugly head again.

On Wednesday afternoon, most of the energy distribution companies suffered power outage, prompting them to inform their customers of the situation.

One of the DisCos, Ikeja Electric Plc, in a message to electricity consumers under its franchise area, said, “Please be informed that we experienced a system outage today, December 11, 2024, at about 13:32 hours affecting supply within our network.

“Restoration of supply is ongoing in collaboration with our critical stakeholders. Kindly bear with us.”

Recall that on Tuesday, in a report, Google listed national grid as one of the top trending searches by Nigerians this year.

Continue Reading

General

NLNG to Replace Vessels in Move Towards Decarbonisation, Sustainability

Published

on

Nigeria LNG Limited NLNG

By Adedapo Adesanya

The Nigerian LNG Limited (NLNG), which produces Nigeria’s Liquified Natural Gas (LNG) and natural gas liquids (NGLs) for export, is planning to replace all its vessels with modern ships within the next decade.

This was disclosed by Mr Nnamdi Anowi, the General Manager of Production, NLNG, during the World Leaders’ Panel session on Tuesday in Berlin, Germany, as part of the 2024 World LNG Summit and Awards.

Speaking at the event themed “Achieving the Balance Between Energy Security and Decarbonisation,” he said the company which was incorporated in 1989 was making plans to boost its vessels to ensure proper transportation of gas for export.

“We are making significant strides in our shipping operations. Over the next 10 years, we aim to transition from our current steam-powered vessels to modern ships.

“Earlier this year, we took a major step by entering into a long-term chapter of our first modern ship Aktoras, and we are already planning to acquire a second ship next year,” he said.

On the critical issue of net zero emissions, Mr Anowi said that NLNG aspires to achieve net zero emissions by 2040.

According to him, this goal is attainable through implementing a combination of solutions that include operational efficiency, natural sinks/offset projects, carbon capture and storage (CCS), net zero expansion, digital solutions and shipping efficiency.

“Our pathway to net zero aligns with Nigeria’s target of reaching net zero by 2060, while many major players in the industry are aiming for 2050.

“We are actively expanding our initiatives in this area, including several low-carbon projects,” he explained.

Regarding Liquefied Petroleum Gas (LPG), Anowi noted that the company had committed 100 per cent of its LPG production (propane and butane) to the Nigerian market.

He pointed out the urgent need for cleaner energy, citing a report that revealed that not less than 100,000 Nigerians died yearly from smoke inhalation caused by cooking with firewood, predominantly affecting women and children.

“This underscores our commitment to sustainability. It’s important to recognise that about 80 per cent of Africans lack access to cleaner energy.

“When discussing sustainability, we can not overlook the necessity of providing energy to these communities,” he added.

He further elaborated on NLNG’s strategy, stating, “Our objective at Nigeria LNG is to maintain safety, enhance capacity, foster growth, and future-proof our business.

“The recent transformation programme includes a rebranding initiative, evidenced by the unveiling of a new logo and the company’s renewed purpose: providing energy for life’s sustainability.

Mr Anowi also noted that NLNG was working diligently to improve its production capacity from 23 million tons to 30 million tons through its Train 7 Project.

“We are actively engaging with stakeholders and the government to ensure our LNG trains are filled by the end of next year,” he said.

On sustainability, Mr Anowi explained that 75 per cent of NLNG’s emissions result from its operations, with the remaining 25 per cent coming from its shipping activities.

He emphasised the importance of measurement, reduction, avoidance and mitigation strategies in their sustainability efforts.

He said that the company was also exploring CCS opportunities through partnerships with the government and other international oil companies.

“We are in the early stages of CCS implementation, assessing potential reservoirs for this purpose,” he said.

In terms of renewable energy, Anowi said that NLNG was investigating solar power projects at its offices in Abuja and Port Harcourt as part of its broader sustainability initiatives.

“We are committed to abatement efforts and are collaborating with experienced private companies to explore carbon credit opportunities.

“We must balance sustainability with affordability and reliability in energy supply.

“The African region must progress at its own pace, prioritising immediate energy needs before addressing long-term sustainability goals,” he explained.

Continue Reading

General

National Grid, Mr Ibu Among Top Trending Searches by Nigerians in 2024

Published

on

google search

By Dipo Olowookere

Many events happened in 2024 in Nigeria but a few shook the nation because of their impact on residents of the country.

According to a report released by Google, the incessant collapse of the national grip, which plunged the nation into darkness, was among trending searches on its platform.

In the report made available to Business Post on Tuesday, the tech giant said this year’s results show a continued interest in the political and economic landscape, with searches related to the US elections, the new national anthem.

“The 2024 Year in Search offers a unique lens into the questions, interests, and conversations that shaped the lives of Nigerians this year.

“From cultural milestones to pressing concerns, these insights reflect how Search continues to be a valuable tool for users to navigate and better understand their world,” the Communications and Public Affairs Manager for Google West Africa, Taiwo Kola-Ogunlade, stated.

Google’s 2024 Year in Search for Nigeria showcased the most popular searches, notable individuals, actors, musicians, topics, questions, and other subjects that captured Nigerians’ attention in the year.

Google’s Year in Search is an annual analysis that reveals the top trending lists and also spotlights what the world searches to see, learn, and do.

The music scene in 2024 was marked by a surge in popularity for artists like Shallipopi and Khaid, who also featured prominently in the overall personalities list. The top trending song was “”I Don’t Care” by Boy Spyce”, followed closely by “Ozeba” and “Commas” by Ayra”. Nigerians also showed a keen interest in understanding the lyrics of various songs, with “Ogechi lyrics”, “Ozeba lyrics”, and “Omemma by Chandler Moore lyrics” leading the searches in the lyrics category.

This year, Nigerians continued to demonstrate a strong interest in entertainment with movies like “A Tribe Called Judah”, “Treasure In The Sky”, and “Damsel” topping the movie charts. The top TV series that captured the interest of Nigerian netizens included “Supacell”, “My Demon”, and “Queen of Tears”. In the culinary world, Nigerians explored diverse recipes with “Pornstar Martini recipe” leading the searches.

Concerns about personal well-being and global events were also reflected in search trends. Questions like “How much is dollar to naira today?”, “How to get perfectly defined curls for African hair?”, and “Who won the US presidential election?” topped the list of queries. Nigerians were curious about the meaning of words like “demure,” “steeze,” and “pet peeves,” turning to Search for answers.

Continue Reading

Trending