By JONAH NWOKPOKU

Despite Nigerian  economy sliding into recession in the second quarter of 2016 and the naira continuing to suffer setback in the money market in spite of the flexible foreign exchange policy by the Central Bank of Nigeria, CBN, some entrepreneurs believe this is just the right time to invest in the country’s nascent e-commerce sector.

Economy

Eghosa Omoigui, the Managing Partner of EchoVC Partners, a venture capital firm that has invested millions of dollars in the Nigeria e-commerce sector told Vanguard in an interview  that investors who pay much attention to the macro negativity of the economy will miss out on spectacular opportunities.

According to him, all the negative narratives about the Nigerian economy are at the macro level and do not affect the micro-economy where most ecommerce activities are taking place and opportunities remain unchanged.

He said: “The entrepreneurs we find here have very high conviction, whether or not the economy is doing well or not. The economic changes, do not necessarily negatively impact the needs for some kind of goods and services. In some instances, the worst economies actually make the needs greater. So, we invest in companies that serve the micro-economies. What we hear is a micro data. It is macro negativity. But there is micro positivity. At the micro level, nothing is going to change.”

He added: “There is no doubt that some investors are pulling back. They are pulling back on deals that we are aware are getting done but are suddenly getting delayed and lengthened, because they are becoming way more cautious because of what is happening in the macro-economic environment. But that certainly has not changed us. Our companies are growing. If we had come in and got scared by what is happening in the economy, we would have definitely missed out on some spectacular companies. And I have learnt from my investing experience that most of my significant deals came at a time of uncertainty and fear.”

Founder/CEO Hotels.ng, Mark Essien, is also one of the e-commerce entrepreneurs spreading optimism about the sector. He said that although the Nigerian economy has fared badly in the past one year, “it is not all terrible for everyone.”

Fielding questions from Vanguard on what inspired his conviction, he said: “The best time to invest is usually when prices are down. Right now, the Nigerian economy is such that building factories and purchasing many things are cheap. Sooner or later, things will recover and all that was built in the time of cheapness will still be producing.”

Essien raised $1.2 million in 2015 to build Nigeria’s largest hotels booking website, Hotels.ng. Like Hotels.ng, other operators like SlimTrader, TravelBeta, Printivo all raised various sums from investors in 2015 but since this year, little has happened in terms of investment in the sector, a situation Essien believes will change significantly within the remaining period of the year when investors realise how the current economic reality portends attractive opportunities for the sector.

He said: I think that in the 3rd quarter and 4th quarter of the year, we will see a lot of investment deals being announced. Of course, many investors will be worried about the poor economy, but the best will realise that this is a good time to invest. A dollar is worth a whole lot more now – and this will allow companies build much cheaper than they otherwise could have. Investors will see this and will invest appropriately.”