In This Issue

• Business Phrase/Word Of The Day: Market Cannibalization

• News RoundUp

• Main Issue: The Art Of Selling Nothing

• Knowledge Corner: Using ChatGPT to Enhance Your Business Decisions

• Book Of The Month: Think and Grow Rich

• Tech: MTN Sets Its Sight To The Sky

• StartUp Spotlight: Smile ID

• Local Heroes: Captain Mark Mc Kerry

• African Proverb Of The Week

• Inside Africa: The Great Serengeti Migration

• Culture: The Lip Plates Of The Mursi

• Quiz/Trivia

Business Phrase/Word Of The Day

Market Cannibalization

: When a company’s new product/service eats into the sales of its existing products. This phenomenon occurs when a product is similar to an existing product and both share the same customer base.

Further reading about the sales phenomenon here. 

News RoundUp

• South Africa's Organized Crime Crisis: South Africa is grappling with a significant rise in organized crime syndicates, often referred to as "mafias," which are infiltrating key sectors of the economy and causing widespread disruptions

• Mauritius Election: Former Prime Minister Navin Ramgoolam has won a third term in the recent parliamentary elections, with the cost of living crisis being a key issue for voters.

• Solar Energy Expansion: Sub-Saharan Africa is experiencing a surge in solar installations due to decreasing costs of solar panels, particularly from China.

• Donald Trump's Potential Impact: African leaders express cautious optimism about a potential second Trump presidency, keeping expectations low due to his previous dismissive remarks about African countries and an "America First" policy that suggests Africa will remain a lower priority in U.S. foreign policy.

• Herman Chinery-Hesse's Legacy: Ghanaian tech entrepreneur Herman Chinery-Hesse, known as the "Bill Gates of Africa," passed away at 61. He was dedicated to developing software tailored to African challenges and played a key role in shaping Ghana’s tech ecosystem.

• South Sudan Floods: Nearly 380,000 people have been displaced by floods in South Sudan, with a surge in malaria cases overwhelming the health system

• Chidimma Adetshina was crowned as Miss Universe Africa 2024. She made history by becoming the first runner-up in the Miss Universe 2024 pageant, held in Mexico. Chidimma's journey to the top was remarkable, especially considering the challenges encountered, including a nationality dispute in South Africa that led her to withdraw from the Miss South Africa pageant and represent Nigeria instead.

Main Issue

The Art of Selling Nothing - Why Some Entrepreneurs Make Millions Selling What Doesn’t Exist!

We have covered a lot of entrepreneurs doing the most remarkable things in Africa and beyond. Our best-read startup stoplight light was on the neo-banking app Jamboo. StartUp Monday: Jamboo - The Digital Banking Platform for the African Diaspora 

Jamboo raised incredible sums of money based on a pitch deck and the remarkable social media charisma of its founders. And this was well before they had a product or service to show off.

Like Jamboo, many entrepreneurs across the globe are raising millions, building incredible communities, and capturing media attention - often before a single product exists.

And it is not smoke and mirrors. Far from it! This approach is a calculated strategy leveraging hype, pre-orders, crowdfunding, and storytelling to bring visions to life.

At its core, “selling nothing” is about harnessing the power of anticipation and human psychology to create real value.

The Power of Hype

The foundation of selling nothing is generating excitement. This “hype” involves tapping into the zeitgeist - sensing what is culturally, socially, or economically relevant to your audience.

A case in point is the Tesla Cybertruck. With its futuristic design and Musk's reputation for innovation, it ignited the internet long before the prototype was built. Similarly, Oculus VR’s successful Kickstarter campaign sparked early excitement by aligning with a rising interest in virtual reality gaming and experiences.

To create hype, entrepreneurs must identify a gap in the market and craft a compelling narrative. This narrative should be aspirational yet believable, addressing real-world problems or painting a vision that is both desirable and almost tangible.

Hype generation is about making people feel like they’re on the cusp of something extraordinary.

Pre-Orders

Once hype is established, entrepreneurs can begin to cash in on the anticipation. Pre-orders serve as a commitment from customers who are willing to invest in the vision.

Drip Footwear which embraced and successfully rode the buy-black/buy-local movement in South Africa made a killing from preorders. And they were not selling something dramatic - just shoes. While their design was sitting in a factory in China, money was more than dripping in - it was flooding in.

Preorders are a validation of the product’s potential, with early customers voting with their wallets. They also offer crucial market insights, giving companies a sense of product demand and allowing for adjustments before full-scale production.

The Tesla Cybertruck - that monstrous beauty - generated 2 million preorders, at $100 a presales order. That’s a whopping $200 million that was raised in deposits before the truck had seen the light of day.

For entrepreneurs, pre-orders can help secure funding, build a customer base, and forecast revenue - all while refining the product in response to real feedback.

Crowdfunding

Platforms like Kickstarter and Indiegogo are built on the premise of selling a product before it exists. Entrepreneurs present their ideas and visions, and backers pre-purchase the product in exchange for early access or special rewards.

Who said ideas are worth nothing?

Crowdfunding has brought countless products to life, from the Oculus Rift (later acquired by Facebook) to innovative gadgets like the Coolest Cooler, which raised millions before the first unit was manufactured.

Perhaps this is worth a shot in Africa where we are more than a little short on Venture Capital.

The Art of Storytelling

At the heart of selling nothing is the ability to tell a compelling story. We covered a bit on storytelling in previous publications: The Power of Storytelling in Building Brand Loyalty and Customer Retention AI and Business Storytelling Exploring the Different Types of Business Storytelling 

Entrepreneurs who master this skill don’t merely sell a product; they sell an idea, a vision of a better future. They weave narratives that stir their audience’s aspirations, desires, and beliefs, making the audience feel like part of something greater.

Think of direct-to-consumer brands like Glossier, which emphasize customer experience and brand identity over traditional advertising. These companies use storytelling to create a sense of community and belonging, making customers feel like insiders.

Successful storytelling forges emotional connections, where the brand’s values, promises, and personality align with the customer’s values.

If you can tell a good story, you can sell anything - even sell nothing!

Understanding Consumer Motivations

To understand why customers buy into pre-sales, one must consider consumer psychology. When consumers engage in pre-orders or back a crowdfunding campaign, they’re often motivated by the desire to be among the first to experience something new and innovative. The exclusivity factor makes them feel like insiders, while FOMO compels them to act before the opportunity passes.

Further, people love supporting ideas that align with their beliefs and interests. This sense of involvement drives many to back “unbuilt” products on platforms like Kickstarter, where the project’s journey feels more personal and participatory.

For entrepreneurs, understanding these psychological triggers is essential to crafting a successful pitch.

Navigating the Risks and Rewards of Selling Nothing

The rewards of pre-selling are clear - early access to funding, valuable market data, and a community of brand advocates.

However, the strategy is not without risks. Failing to deliver on promises can damage a brand’s reputation, and managing a large pre-order base can become logistically challenging.

Coolest Cooler, despite its crowdfunding success, struggled with production delays, leading to dissatisfied backers and reputational damage.

Companies that focus heavily on hype without adequate product validation risk disappointing customers when the product finally arrives.

In extreme cases, regulatory issues may arise if pre-sold products fail to meet promised standards. Entrepreneurs must ensure transparency and maintain realistic timelines, as consumer trust is the foundation of a successful pre-sale model.

Future Innovations in Selling Nothing

With advancements in technology, particularly in augmented reality (AR) and virtual reality (VR), the strategy of selling nothing is likely to evolve.

Imagine being able to experience a virtual walkthrough of a yet-to-be-built house or test-driving a virtual car - all before any physical product exists. VR and AR allow entrepreneurs to bring visions to life, bridging the gap between idea and reality and creating immersive experiences that reduce scepticism and increase buyer confidence.

AI can aid in crafting more tailored and emotional pitches. It can also help in automating parts of the hype-generation process and using data to identify trends that align with customer interests. AI-driven insights can refine narratives and provide highly personalized marketing, adding new dimensions to the art of storytelling.

Don’t Be A Con Artist After Reading This

The art of selling nothing is not about deception.

It’s about selling a vision of the future that people are willing to invest in. This approach harnesses the power of anticipation, belief, and psychology to create real value long before a product exists.

While it carries risks, when executed with transparency and genuine intent, pre-selling is a powerful tool for building communities, raising capital, and driving innovation.

Knowledge Corner

Using ChatGPT to Enhance Your Business Decisions

Decision-making is at the heart of entrepreneurship. The process involves framing the decision, generating alternatives, and choosing the best option. Tools like ChatGPT can significantly enhance these steps, acting as a powerful, unbiased sparring partner. Here’s how:

Frame the Decision

Clearly define your goals, values, and the context surrounding the decision. ChatGPT can assist by:

• Helping articulate the problem with precision.

• Exploring how similar businesses have framed comparable challenges.

Example Prompt: "What goals and considerations should a growing e-commerce business focus on when deciding whether to expand into new markets?"

Generate Alternatives

Avoid limiting yourself to obvious options. ChatGPT excels at uncovering possibilities you might overlook, thanks to its access to a wealth of documented strategies and examples.

Evaluate and Decide

ChatGPT helps challenge biases, broaden perspectives, and weigh the pros and cons of various options. While it doesn’t replace your judgment, it sharpens your evaluation process.

Example Insight: Ask, “What mistakes have other startups made in hiring strategies, and how can they be avoided?”

Why Use AI to Assist in Decision-Making?

• Unbiased Analysis: It isn’t influenced by office politics or personal agendas.

• Cost-Effective: A fraction of the cost of consultants or strategy teams.

• Accessible Knowledge: Learn from thousands of similar scenarios faced by other businesses.

AI/ChatGPT isn’t a magic solution, but it’s a valuable tool for structuring and refining decisions. Engage with it in a thoughtful dialogue to harness its potential. Future iterations, like “DecisionGPT,” may take this a step further, but the entrepreneurs who embrace today’s tools will already have the edge.

Don’t just ask ChatGPT for answers. Don't make it think for you! Rather, challenge it with insightful questions to explore every stage of your decision-making process.

Book of The Month

In the last edition, we touched on the key lessons from Think and Grow Rich. Today we spotlight the less-highlighted insights.

Overcoming Fear as the Key to Success

Hill identifies six basic fears that hold people back: fear of poverty, criticism, ill health, loss of love, old age, and death. He argues that these fears paralyze action and must be conquered to achieve success.

Transforming Failure into Opportunity

Hill suggests that every failure carries the seed of an equivalent advantage to success. Learning to view setbacks as stepping stones to success is a hallmark of great achievers.

Emotionalized Goals Drive Action

Goals are not just intellectual - they need an emotional connection. The stronger the emotional connection, the more motivated you’ll be to pursue them.

The Role of Energy in Achievement

Physical, emotional, and mental energy are crucial for sustained success. This includes maintaining health and vitality. Develop habits that boost your energy - regular exercise, proper rest, and balanced nutrition. Avoid distractions that drain your focus and energy.

The Danger of Procrastination

Procrastination is described as a common enemy of success. Hill argues that successful people act quickly and decisively, while procrastinators miss opportunities. Combat procrastination by creating small, actionable steps. Use deadlines and accountability to keep yourself on track.

The Role of Enthusiasm

Enthusiasm is a powerful tool for influencing others and maintaining momentum. It inspires both you and those around you. Approach your work with passion and excitement. Share your enthusiasm with your team, clients, or partners - it’s contagious.

Habitual Success Practices

Success is built on habits. Hill describes the importance of consistent actions that align with your goals. Identify and nurture habits that move you closer to your objectives.

Tech

MTN Sets Its Sight To The Sky

In a significant move to bridge the digital divide, MTN Group, South Africa's leading mobile operator, is exploring partnerships with low-Earth-orbit (LEO) satellite providers to enhance internet connectivity in underserved rural and remote regions.

CEO Ralph Mupita emphasized the critical role of satellite technology in ensuring continuous connectivity, particularly in areas where traditional telecommunications infrastructure is either impractical or prohibitively expensive.

Understanding Low-Earth-Orbit Satellites

LEO satellites orbit the Earth at altitudes ranging from approximately 160 to 1,600 kilometres above the planet's surface. This proximity allows them to provide low-latency communication services, making them ideal for internet connectivity.

Unlike geostationary satellites, which remain fixed relative to a point on Earth, LEO satellites speed across the sky, necessitating a constellation of satellites to ensure continuous coverage.

MTN's Strategic Vision

MTN's initiative to collaborate with LEO satellite providers aligns with its broader strategy to achieve 95% broadband population coverage across its operational footprint by 2025, up from 88% in 2022.

By integrating satellite technology with its existing terrestrial networks, MTN aims to extend mobile connectivity to more rural and remote areas, thus ensuring that even the most isolated communities gain access to reliable internet services.

Collaborations and Trials

The company is conducting proof-of-concept trials with various LEO operators and is considering acting as a reseller in certain markets. This approach mirrors the strategies of competitors like Vodacom, which has partnered with Amazon's Project Kuiper, and Cell C, which is also pursuing similar collaborations.

Regulatory Considerations

While the potential benefits of LEO satellite partnerships are substantial, regulatory challenges persist. In South Africa, the Independent Communications Authority of South Africa (ICASA) is developing a framework to clarify rules for satellite internet providers.

Implications for Digital Inclusion

By leveraging LEO satellite technology, MTN is poised to make significant strides in digital inclusion, particularly in regions where building traditional infrastructure is not feasible. This initiative underscores the transformative potential of satellite technology in connecting the unconnected and fostering socio-economic development across Africa.

StartUp Spotlight

Smile ID, Africa's premier digital Know Your Customer (KYC) provider, addresses these challenges head-on by offering innovative identity verification solutions tailored to the continent's unique conditions.

Founded in 2017 by Mark Straub and William Bares, Smile ID emerged from a profound understanding of the complexities surrounding identity verification in Africa. Straub's experiences in India and Africa highlighted the difficulties individuals face in proving their identities, inspiring the creation of a solution that empowers Africans globally to authenticate themselves effortlessly.

At the core of Smile ID's offerings is a proprietary technology platform that leverages advanced machine learning algorithms. This platform is meticulously designed to accommodate all skin tones, function effectively on entry-level devices, and operate seamlessly in low-bandwidth environments. Such adaptability ensures that businesses can onboard users swiftly and securely, regardless of technological constraints.

Smile ID's artificial intelligence and identity verification tools boast a remarkable 99.8% accuracy rate for African faces, underscoring their reliability and precision. This high level of accuracy has attracted a diverse clientele across various industries, including fintech, banking, and transportation.

Notable partners include Chipper Cash, Paga, Paystack, YellowCard, Zenith Bank, Stanbic IBTC, Flutterwave, Fairmoney, Binance, Uber, Bolt, Kuda Bank, Opay, Luno, and iKhokha.

By striking an optimal balance between fraud prevention and user experience, Smile ID has facilitated over 100 million KYC checks to date. This achievement reflects the company's commitment to enabling businesses to scale efficiently while maintaining robust security standards.

For entrepreneurs aiming to expand their ventures across Africa, partnering with Smile ID offers a strategic advantage. By integrating Smile ID's solutions, businesses can ensure compliance with KYC regulations, enhance user trust, and streamline onboarding processes, thereby accelerating growth and fostering innovation in the African market.

In essence, Smile ID is not just a service provider but a catalyst for transformation, empowering African businesses to thrive in a digital era where identity verification is crucial.

Local Heroes

Captain Mark Mc Kerry

Captain Mark McKerry stands as a beacon of hope and inspiration, demonstrating that even in the face of adversity, one person can create lasting change. He was born and raised in Duncan Village, South Africa - a community marked by a history of poverty.

Rising from humble beginnings, McKerry defied the odds to become a respected police captain. Yet, what truly sets him apart is his unwavering commitment to uplifting his community.

Witnessing the struggles of those around him, especially the heartbreak of children going to bed hungry, McKerry founded a soup kitchen that serves meals to 300 people every week.

His generosity goes far beyond food security. McKerry actively donates school shoes, stationery, blankets, clothes, and bedding to families in need, ensuring that children have the resources to pursue education and live with dignity. His efforts reflect a deep understanding of the interconnected challenges faced by his community.

Among his many initiatives, McKerry spearheaded a garden project, promoting food sustainability and environmental care. Additionally, he launched a book drive to encourage literacy and keep youth engaged in education, offering them a path to a brighter future.

Captain McKerry's work transcends charity; it embodies a vision for a stronger, more united community. Through his leadership, he has shown that heroism lies not in grand gestures but in the consistent and heartfelt dedication to making others’ lives better.

Captain Mark McKerry is more than a police captain; he is a role model, a community builder, and a true African hero. His compassion, determination, and relentless pursuit of positive change will continue to inspire generations to come.

African Proverb Of The Week

Inside Africa

Nature’s Symphony in Motion - The Great Serengeti Migration

Africa has a way of pulling you in, whispering its secrets in the rustling of acacia trees, painting its beauty in sunsets so bold they leave your heart gasping. But nothing quite captures the soul of this continent like the Great Serengeti Migration - a phenomenon so grand it feels like a love letter from nature to Africa.

Stretching across the rolling plains of Tanzania's Serengeti and the Maasai Mara in Kenya, the migration is more than just a movement of animals; it’s the heartbeat of the wild.

Over 1.5 million wildebeest, accompanied by zebras and gazelles, embark on an endless journey, chasing the rains in search of lush pastures. This annual odyssey is a story of survival, a rhythm as ancient as the land itself.

Picture this: the sun rising over golden savannahs, the horizon alive with the silhouettes of wildebeest. They march in unison, a living, breathing tapestry against the vast expanse. The air is electric with anticipation as predators - lions, cheetahs, and hyenas—lurk in the shadows, testing the mettle of the herd.

And then, there’s the drama of the Mara River crossing. Thousands of wildebeest plunge into crocodile-infested waters, their instinct driving them forward despite the danger. It’s a scene of chaos and courage. Watching it unfold is both humbling and exhilarating, a reminder of nature’s raw power and beauty.

But the migration isn’t just about the animals; it’s about the land they traverse. The Serengeti, with its endless skies and golden grasses, feels like the cradle of life. The Maasai Mara, with its dramatic landscapes, showcases Africa in its most primal and awe-inspiring form. Together, they are more than destinations—they are Africa’s soul laid bare.

Beyond the spectacle, the migration connects us to something deeper: a sense of wonder, a respect for the wild, and a profound appreciation for the continent that cradled humanity. It’s not just a journey for the animals; it’s an invitation for us to journey inward, to rediscover our place in the natural world.

To witness the Great Serengeti Migration is to fall in love with Africa. It’s an experience that stays with you, a memory you carry like a treasure. It’s a reminder that Africa isn’t just a destination - it’s a feeling, a story, a legacy.

Culture

The Lip Plates Of The Mursi

Found in Ethiopia's Omo Valley, the Mursi tribe showcases Africa’s rich cultural heritage. Among their many traditions, the practice of wearing lip plates by Mursi women is both captivating and emblematic of their identity.

When a Mursi girl reaches the age of 15 or 16, she faces a pivotal decision: whether to embrace the tradition of the lip plate. This choice is deeply personal and voluntary, reflecting the tribe's egalitarian values. The process begins with an incision in the lower lip, typically made by the girl's mother or another woman in the community. A wooden plug is then inserted to keep the cut open during the healing period, which lasts about three months. Over time, larger plates, crafted from clay or wood, are introduced, gradually stretching the lip. The size of the plate varies, often ranging from 8 to over 20 centimetres in diameter. Each woman takes pride in creating her own plate, often adorning it with unique ornamentation.

The motivations behind this practice are multifaceted. Some suggest that lip plates serve as a form of protection against rival tribes during intertribal conflicts, while others believe they enhance a woman's attractiveness, making her more desirable as a marriage partner.

Contrary to some beliefs, the size of the lip plate does not determine the bride price in cattle. Instead, the tradition is a symbol of female strength and self-esteem within the Mursi community.

In recent times, the Mursi's unique customs have attracted global attention, drawing tourists eager to witness their distinctive cultural expressions. While this has brought economic opportunities, it also presents challenges, as the tribe navigates the balance between preserving their traditions and engaging with the modern world.

Quiz/Trivia

In terms of population, what is the largest city in Africa?

A. Lagos
B. Johannesburg
C. Kinshasa
D. Cairo

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