With the economic crises around the world making the news daily, financial experts have been analysing the impact and implications in the world’s economies. One of the world’s leading financial management and advisory companies, Merrill Lynch has compiled a report, Global Economics, following several data requests from clients of the investment bank for key risk indicators for all major economies including Europe, the Middle East and Africa (EMEA).

The risk ranking was based on seven indicators which include current account financing gap, foreign exchange reser-ves/short-term external debt ratio, private credit-to-Gross Domestic Product (GDP) ratio, and private credit growth, loans to deposits and banks capital-to-assets ratio.

The Statistics

The report showed that Nigeria is the least vulnerable economy in the world. According to the statistics, Nigeria, with a population of 141.41million, was able to record a 7.3 per cent growth in GDP, with its Consumer Price Index hovering at 11.5 per cent, its current account balance, fiscal balance and public debt at 6 per cent, 6.3 and 10.4 percentage respectively.

To determine its external vulnerability, Nigeria’s external debt position was put at 12.9 per cent of the GDP, while external debt /exports ratio was put at 9 per cent. Her forex reserves totalled $60.8billion.The percentage of Nigeria’s total external debt in relation to the GDP was put at two per cent, total foreign claims is $15.3billion while international claims stood at $13.1billion.

The report stated that the percentage of Current Account Balance plus net Foreign Direct Investment of the Nigerian GDP was 34, Forex reserves/short-term external debt totalled 41, while percentage of export of the GDP was 38 point. The percentage of private credit of GDP was 43, while the percentage of bank capital to assets, according to Merrill Lynch was 41.

The Economies

The world’s 10 least vulnerable economies are Nigeria, Mexico, Phili-ppines, Colombia, Egypt, Oman, Indonesia, Peru, China and Russia. While the world’s 10 high-risk economies are Australia, Switzerland, Korea, Romania, Hungary, Sweden, Bulgaria, Euro area, United Kingdom and the United States of America.

The 10 most vulnerable countries, which are mostly European countries, were said to have exhibited worse balance of payments positions, stretched external debt service ratios and overleveraged financial systems.

Merrill Lynch states “Many of the economies that top our risk ranking have been identified by the National Bureau of Economic Research (NBER) as those that have experienced capital flow bonanzas in the past five years and hence exhibit higher likelihood of economic crisis.”

The Indicator

It was noted that the key indicator to the safety of investment in Nigeria is the freedom to invest in any part of the country without government’s intervention. The Director-General of the Nigerian Economic Summit Group (NESG), Mazi Sam Ohuanbuwa stated, “In Nigeria, people can invest anywhere without hindrance.  Other important considerations are the sheer size of the Nigerian market and underlying macro-economic issues.”

The Future

With a healthy foreign exchange management, low budget deficit and heavily low external indebtedness, Nigeria is poised to attract more investors. Although the cost of doing business in Nigeria is high compared to other economies, the level of risk is far lower than what is obtainable in some other economies of the world.

Nigeria is the 38th-largest economy in the world and 137th based on per capita GDP of $2027 a year.  Perhaps, the Vision 2020 program would see Nigeria becoming one of the 20 largest economies in the world.

It’s a great opportunity to be here as a guest blogger. My name is Mutiu Okediran and I had this interview (via email) with Francis Onwumere. He is a freelance web developer.

Enjoy the interview…

Francis said no matter the difficulty you are facing as a startup

Start by having a plan. At least start and don’t let the difficulties woo you

SN: Please tell us about yourself, your background and interests?

Francis: I’m a 25 year old freelance web developer and have been doing this professionally for close to four years now, mainly as a means of extra income while studying chemistry at University of Nigeria.

Originally it all started by chance. I had just finished secondary school in 2000 and while trying to gain admission into university, I came across this HTML book at one Akoka study centre in Lagos. Alongside my A-Level studies, I gradually began to explore the world of HTML and web design.

In 2003, when I went to the University of Nigeria to study Chemistry, I already had a lot of interest in web design and at the same time the web as a platform for services was beginning to grow and new standards emerging. I had to keep up pace with the developments at the same time meeting the demands of studying chemistry. So I taught myself CSS, graphics, animation and when I was satisfied with those, I delved into programming and database management.

While studying Chemistry, I had the opportunity, many times, to speak about what chemistry was all about or to explain the relevance some particular research to a non science person. When I saw the difficulties that entailed, it raised my interest in science journalism and writing.

SN: What is the name of your blog/start-up/company?

Francis: I started Digital Craft Studios (DCS, digitalcraftstudios.com) as my web development start up right after my graduation in 2006 and then in July this year with along with a journalist, Ikechukwu Anyanwu, I kicked off Scitech360, a web magazine that showcases and fosters innovation in Science and Technology in Africa.

SN: Please tell us about your blog/start-up/company?

Francis: Scitech360 is a free-access online magazine, written mainly by contributors and enthusiasts from Africa. It brings you logical analysis, insight, and qualitative evaluation of the key research and innovation issues shaping the future of technology today.

We will unveil the changes and potentials that present business, investment and research opportunities. With Scitech360, you’ll have a window to follow research as it makes it makes the leap from the laboratory into the market place.

SN: What is unique about your blog/startup/company?

Francis: I guess Scitech360 is unique first because we are the only one doing what we are doing, the way we are doing it. Its innovative approach is opening new grounds, at least in Africa. All forms of media are used to help communicate a particular science or technology innovation. We employ traditional text, with illustrative images also to aid our readers in visualizing the concept we employ web videos. And so that our readers are constantly in touch whether at their desk or while mobile, we implemented a feed system.

SN: How many people are currently using your website services (e.g. feed readers, visitors)?

Scitech360’s subscriber base is growing steadily since we started in July 2008. At last count, we have over 500 readers more than half of them are returning. Almost all of them are subscribed to the site feed. For a project that is specialised, we feel it’s a good start to achieving our objective.

As for DCS we currently service over 20 clients and another 10 or so that have been outsourced to us. Also many prospective clients always come knocking.

SN: What kind of marketing and/or advertising strategy do you use for your website?

Francis: Our marketing strategy for scitech360 is basically pushed by our readers and through social networks. Each news feature on scitech360 has an ‘email to friend’ functionality also readers can submit the news to the Digg news social network.

SN: What are the main web technologies/tools you use to monitor the performance of your website?

Francis: Google Analytics. It’s just so comprehensive.

SN: What is the monetizing/revenue model for your website?

Francis: Currently scitech360 is not generating revenue. It’s still being powered by Digital Craft Studios. In the long run we hope to generate revenue from corporate adverts and sponsorships from companies that have a stake in science and technology in Africa. We are currently working on satisfying our audience first, revenue will come.

SN: Which websites are the main competitors in your market segment/sector?

I like to see models and motivator in competition.

Science Writing: www.technologyreview.com

Web: www.printmediany.com and www.Edgeofmyseat.com

SN: What challenges do you currently face as a web entrepreneur?

To keep readership interest we constantly have to be innovative in content and functionality of scitech360. This is of course aside from the infrastructure problems associated with Nigeria.

SN: What do you think of new startups and innovation coming out of Nigeria today?

Francis: They need to raise their game, sharpen their skills so that they’re able to stand shoulder to shoulder with providers of similar service globally.

SN: What new Nigerian startups, in your opinion, should be watched?

Francis: startupsnigeria, dudumobile, Digital Craft Studios

SN: Do you have any thoughts on our Universities and their curriculum in terms of promoting and encouraging entrepreneurship and innovation amongst students?

Francis: I’ll like a more project oriented education approach, i.e. undergraduate research should be encouraged not only as a final year project but all through the duration of study. I see it as the most effective means of keeping the students interested in learning and innovation by showing them the real life applications of the problems they solve in class.

SN: What do you think the Government (both Federal and State) should do to improve the culture of innovation and entrepreneurship in Nigeria?

Francis: The Government would do well to focus on science, technology and even the arts, if Nigeria is to be a service producing economy and not just a consuming economy.

SN: Do you have any advice for people who want to launch new startups?

Francis: Start by having a plan. At least start and don’t let the difficulties woo you

SN: Do you have any business advisor/mentor?

Web: Steve Jobs and Rachael Andrews

Science Writing: Technology Review and Alex Abutu of News Agency of Nigeria.

Qubestreet is a pan-African media & entertainment start-up pre-launched in Nigeria in November 2006, with the goal of uniting Africans through interactive solutions, events, publications and new media interactive projects across different niche markets.

The idea of the site is to showcase the best of African talent to the rest of the world and, at the same time, connect top rated African brands to the global market through the use of technology and innovative portals. These portals will connect different people with shared interests, hobbies, occupations and backgrounds.
 
Since the conception of Qubestreet Media and Entertainment, the company has participated in and also supported various events in Nigeria such as:

• Fusion 2006
• Pink Pearl Breast Cancer Awareness Concert 2007
• The Emancipation of the Duchesses (A high school reunion)
• Burst ‘n’ Move Hip-hop Project
• Bump ‘n’ Grind Awards Night (Corona Class of 2007)

Qubestreet is proposing an official launch in Nigeria and South Africa come 2009 and is poised to offer services such as event management & consultancy, publishing, production and promotion of events, and new media technologies.

Qubestreet will be launching different products such as 1709 Communications (new media technology), Street Press (publishing), Mahsive Promotions (events production and branding), Naijaborn (social networking).

Qubestreet is seeking funding and support and would also value collaborations and partnerships. The company is registered in Lagos, Nigeria and Johannesburg, South Africa.

When the announcement came in June this year that the 3G iPhone will be launched in Africa, I was eagerly anticipating to witness the hype in Nigeria, even though I had witnessed the hype first hand in France last year.

Before then, Vodafone had signed a ten-country deal with Apple to supply the iPhone to Africa. In September, the 3G iPhone finally arrived in South Africa after a lot of rumors and speculations.

Today, iPhone 3G is available in 64 countries across Europe, Asia, Australia, North America, South America, the Middle East and the Carribeans. In Africa, the 3G iPhone is currently available in Egypt and South Africa.

I was curious to see what African countries are next in line for the 3G IPhone launch, so I visited the Apple’s website only to find out that Nigeria was not listed amongst a total of 13 African countries where the 3G iPhone is launching soon. This makes me wonder if Apple recognises Nigeria’s mobile phone users growth rate (over 66 million mobile phones in Nigeria) and the fact that Nigeria is the largest telecoms market in Africa.

Although it was indicated that country availability and rollout schedule are subject to change, it’s hard to believe that Nigeria has been left out of the iPhone craze and buzz around the world.

On the funny side, here is a cartoon from Wired Scout that describes the launch of iPhone in Nigeria.

About iPhone 3G

With fast 3G wireless technology, GPS mapping, support for enterprise features like Microsoft Exchange, and the new App Store, iPhone 3G puts even more features at your fingertips. And like the original iPhone, it combines three products in one — a revolutionary phone, a widescreen iPod, and a breakthrough Internet device with rich HTML email and a desktop-class web browser.

Since the Blackberry device came into Nigeria in 2006, there has been a huge hype about the future of mobile devices in Nigeria. While we await the arrival of the Apple iPhone into Nigeria, here comes another smartphone designed and manufactured for Africa - Anabel Mobile.

Anabel Mobile is Africa’s first smart phone with value added services and functunalities such as the ‘push and pull email’ which has been the hallmark of the Blackberry device.  The handsets are manufactured and distributed by Nigerian-based start-up Anabel Mobile.

In a statement released to THISDAY, the company stated that “Anabel Mobile is a global brand created by Nigerians and which has chosen first to start with Nigeria giving Nigerians the respect and focus that many international brands have failed to do”.

Anabel Mobile devices are equally designed to meet the needs of high end students who are running sophisticated graduate or senior programmes and need advanced mobile devices for data analysis, communicating and reporting, and for sharing large files whether data, voice, music or video.

What Makes It Unique?

The Anabel Smart Phone is said to be extremely stylish and very user friendly and runs on Microsoft’s Windows Mobile 6.0 and 6.1, which makes it compatible with any PC anywhere in the world.

The Anabel Professional Series, which comes in ranges from PS 100s up to PS 200s, allows you to synchronise your Anabel Smart Phone with your PC, all your data, emails, presentations etc and since it is running on windows you can also prepare your power point, excel or word presentations while on the move in your car or while waiting for a flight at the airport.

The smart phone has been accredited and approved by the Nigerian Communications Commission (NCC). The NCC also granted Anabel Mobile a licence to operate within the Nigerian territory for sales of its full range of products. NCC is said to be excited that the Anabel devices will be the first hand held devices to carry the NCC accreditation and approval stamped on its devices. 

My take on this

Although I’m excited to witness the launch of Nigeria’s first smart phone, I’m still skeptical about its functunalities. Particularly because the brand is hardly mentioned amongst other big mobile device companies such as Apple and Vodafone. I hope Anabel Mobile is truly what we expect it to be - a Blackberry-like smart phone.

If you want to host a website in Nigeria, you may decide to choose the .ng domain name registration since it is the official Internet Country Code Top Level Domain of Nigeria sponsored by the National Information Technology Development Agency (NITDA) with the Nigeria Internet Registration Association (NiRA) as the Registry.

To register the .ng domain name, you must have actual physical presence in Nigeria (as an individual or as an entity) and you can make the registration through several registry services that offer the .ng registration. NiRA has announced that it expects to gain 2 million users over the next 18 months, fueled in part by a January 2008 memorandum of agreement between NiRA and NITDA.

What You Should Know When Registering a .ng Domain

1. The registration contract is valid for two years and .ng domain registration is now done through a web form.
2. Multiple domains are allowed for one entity.
3. The domains must have at least two independent servers that provide the domain service for translating names to addresses for hosts in this domain.
4. At least one of the secondary name servers should be on a different physical location than the primary.
5. Registrations must be from organizations with permanent address in the country and such organizations should use domain name on the Internet on a regular basis.
6. Most of the registry service providers ask for a registration fee, but free registration is also available at other sites. (An example of a web hosting company that offers free .ng domain registration is Web4Africa, but you have to subscribe to any of their web hosting packages to benefit from this offer.)
7. Only those domain names which are requested through the website will be considered for availability.
8. Make sure that the domain name you are suggesting does not violate the trademark or the service mark.
9. Company registrations in Nigeria and accurate contact information are the two important requirements for .ng registration.
10. Specify the registration type, name of the domain, the name of the entity, a brief description of the domain, the date, name of the administrative head of the organization, the name of the technical and zone contact, secondary server and Internet host.

The second level domains also available for use in Nigeria are:

com.ng - commercial entities and businesses
org.ng – non-commercial organizations
gov.ng – governmental organizations
edu.ng – degree awarding institutions
net.ng – ISP infrastructure
biz.ng
info.ng

How to Get a .ng Domain Name

You can download the registration form from the site here. You can also read more by clicking on this PDF document. You can also search WHOIS to find what websites are registered.

My Opinion

It seems that people are not so keen on the .ng domain name as it is with South Africa’s .za, United Kingdom’s .uk, France’s .fr, India’s .in, Australia’s .au and so on. Instead, we see more of Nigerian websites with the .com domain name (even this blog - StartupsNigeria is a .com domain name registration)

My questions are:

• Why are there fewer Nigerian websites with the .ng domain name brand?
• Is it that the procedures and conditions for registering a .ng domain are complicated?
• Does it have anything to do with the Search Engine Optimization (SEO) or Google website indexing?
• Could it be the price of a .ng domain name as compared to a .com domain name?
• Or is it the quality of service of the .ng domain? (It was rumoured that at one time all the .ng sites went down due to a technical problem at NITDA)

What is your opinion?

If you are wondering what web hosting companies are leading the pack in Nigeria, perhaps this web host ranking information from WebHosting.Info would give you an idea of what web hosting company to choose when registering domains or getting a webhosting package from Nigeria.

The ranking is based on the overall market share and total domains registered as at November 11, 2008.

From the graph, Nairahost.com ranks number 1, with a market share of 10.901% and total domain registered is at 1,130. Mcreal.net follows with a market share of 10.8335% and total domain registered at 1,123 (just 7 domains shy of Nairahost.com). Then, Syskay.com ranks 3rd position with a market share of 9.9749% and total domains of 1,034.

Other notable web hosting/domain registration companies include weblagos.com (4th position) and Nairadomains.com (5th position). Web hosting companies such as Linkserve.com.ng that started before Nairahost.com didn’t make it to the Top 10. Linkserve ranks 16th with a total of 105 domains and a market share of 1.0129%.

I’m surprised that Web4Africa.com.ng doesn’t make it to this list, even though the company offers Nigerians the opportunity to buy domain names and web hosting services via payment with Interswitch Debit/ATM card.

Besides, when I googled the phrase ‘top web domains nigeria’, the search showed that web4africa.com.ng ranks 2nd on the list, while nairahost.com ranks 4th position. Web4Africa.com.ng claims to offer the most affordable domain registration service in Nigeria from N1,250 only (about $10) as at October 2008. I think Nairahost offers the .ng domain for about N1000. Not sure.

My final thoughts

Even though most of these web hosting companies offer interesting features and packages, none of them offer unlimited disk space and bandwidth like the world’s most popular web hosting companies.

I think that with enough broadband access to cater for the 10 million or more internet users in Nigeria, we will start to witness more competitive web hosting offers that may include unlimited disk space and bandwidth.

Do you use any of these web hosting companies? What is your opinion about them? What other web hosting companies in Nigeria do you know?  How reliable are their services?

If you represent any or none of the various website hosting companies mentioned here, you also can share in this discussion.

Statistics Source: WebHosting.Info