Entrepreneurship requires patience, perseverance – The Business & Financial Times

–Valentine Obi eTranzact Global CEO, shares career journey  

The Chief Executive Officer, of eTranzact Global, Valentine Obi, has shared his entrepreneurial journey with the youth of Africa to encourage and guide them to avoid pitfalls but hold onto their dreams irrespective of the challenges.

According to him, in Africa, the entrepreneurial journey often begins with excitement over an innovative idea but soon collides with realities like funding, regulation, and market acquisition which can significantly dampen an entrepreneur’s spirit.

Unlike in other regions, African entrepreneurs have fewer precedents to guide them. Yet, the significance of learning from those who have paved the way cannot be overstated. It’s like the African proverb: “Standing on the shoulders of those ahead allows you to see further.”

He recounted that his journey began in 2002, in Nigeria at a time when the country was barely touched by mobile technology, with just 50,000 mobile phones in use and limited landline access.

At that time, the government began licensing mobile operations, which signaled the start of a mobile revolution in the country. Observing the changes, he envisioned a mobile payment system that could transform how money moved in a country predominantly reliant on cash transactions.

Armed with this idea, he approached potential backers—first the Central Bank of Nigeria (CBN) followed by the commercial banks. However, each meeting ended in rejection.

“With the CBN, the look on the director’s face was as if he thought we had nothing better to do than listen to a fantasy story. After my pitch, he politely walked me out of his office, with a comment, ‘Send us a report when you start’. There was no licensing. It took nine years after, in 2012 to be precise, before the CBN started issuing Mobile Money Operators licenses,” he said.

Awkwardly, his meeting with the commercial banks was more disappointing than that of the regulator. But he persevered because he believed in the vision and was convinced it was only a matter of time.

“For the banks, I can understand the initial rejection. The first time we brought them together to present our solution, the test that worked perfectly in the office failed. The SMS that was sent for a balance inquiry did not make it back on time. It eventually came but at midnight. That was in the days in Nigeria when SMS to the next phone by your side could take almost the whole day to deliver. So, how could a bank build its payment platform on such an unreliable network?” he quizzed.

“However, we soldiered on, my vision, clear and revolutionary to me, seemed quite implausible to them. They couldn’t see what I saw: a future where mobile banking and payment would lead in the payment industry. In those days, I used to make presentations with titles like, ‘The Death of Cash’. 20 years later, cash has refused to die, but we have dented its ego, nonetheless,” he highlighted.

The frequent rejections could have been a sign to give up, but instead, he believed that being ahead of the curve often meant walking a lonely path. This affirmed the novelty of his idea.

“I refused to be discouraged. Despite the lack of external support, I funded the project with personal savings, assistance from my wife, and a small dedicated team that believed in the potential of what we were building,” he said.

This represents a clear demonstration of patience and self-belief, a rare value that he encouraged the youth who seek to thrive in the entrepreneurial ecosystem to survive.

“On April 6, 2003, a few months after we went live, our efforts began to gain recognition. We received the Computer World Honors Gold Medal Award for innovative and visionary use of technology to produce and promote positive social, economic, and educational change in society from Silicon Valley, San Francisco.

“That was a great boost for the team because it made us realize that the world was watching what we were doing. This external validation was crucial, yet it was the support from within Nigeria, including an invitation from the president, former President Olusegun Obasanjo, after the award, to discuss our technology, that truly propelled us forward,” he said.

Fast forward, to 2008, when Apple launched the App Store, eTranzact became the first mobile banking and payment app on the App Store. At the time, Play Store was referred to as Android Market, and eTranzact was there too.

These two inventions set the precedent that led to a proliferation of banking apps globally, but interestingly, at the time 90 percent to 95 percent of the Nigerian population had no smartphone.

“So, who do you want to serve? But I believed, and I knew, that this indeed was a turning point not just for eTranzact, but for mobile banking and payment in general,” he shared.

How Long Must Entrepreneurs Hold on

Mr. Obi expressed that most entrepreneurs wonder how long they need to keep pursuing an idea when regulators or the market is not interested but it can take several years to finally get a breakthrough hence the need to hold on tight while advancing knowledge on how to make the product or service even better.

“Many of you might wonder, how long is long enough when it comes to persistence in building not just a company, but a whole new industry. In our case, it meant years of pushing forward without immediate results, facing not only the challenge of introducing a new product but also creating and cultivating a market for this product. Persistence in such a context isn’t just about keeping your operations running. It’s about steadfast commitment to education, adaptation, and continuous engagement with all stakeholders involved.

“During these long years, it was natural to feel vulnerable. There were moments when the enormity of what we were attempting to achieve weighed heavily on me. Despite the deep conviction in our vision, the frequent rejections and setbacks could make anyone question their path. However, I learned that vulnerability is not a sign of weakness but a reflection of the courage to undertake risks that could lead to substantial change,” he stressed.

Be Careful of Enticing Deals  

The CEO cautioned that entrepreneurs must be aware that enticing deals could come their way in situations where influential investors could see the potential prospects the future holds.

“In the journey of building eTranzact, there came a pivotal moment that tested not just my resolve but also my understanding of the vision. After years of relentless challenges and slow progress, I found myself at a crossroads. The strain of pioneering in a new industry and financial pressures led me to consider selling the company.

“A foreign bank group was interested, and the offer was tempting—US$15 million. It seemed like a way out, a chance to secure financial stability and perhaps step away from the incessant struggles,” said.

He recounted how a close friend he confided in helped to keep him on his toes and keep the dream alive. With this, he urged the youth to consult and share ideas with people who are experts or trustworthy friends and business-minded to seek different perspectives when at a crossroads.

“On my way to the airport, with a heart filled with doubts and what-ifs, I stopped to visit a friend and a brother, Zach Wazara, the then CEO of Econet Wireless, now Airtel, in Nigeria. I confided in him about my decision to sell and was heading to Washington D.C. for the final negotiations. Zach’s response was both shocking and enlightening.

“He said, “Val, you are behaving like an Esau. You want to sell your birthright?” He continued, “For every vision, God appoints a custodian. With eTranzact, you are that custodian, but your actions are questioning that appointment.”

According to Mr. Obi, his friend’s words struck a chord. At that moment, he realized that his venture was more than just a business; it was a responsibility, a calling that was about to abandon.

His metaphor of selling a birthright made him see the long-term impact and potential legacy that eTranzact held.

That conversation he said, was a turning point. “I decided against selling the company, choosing instead to embrace the challenges as part of my journey. This decision was not easy but reminded me that vulnerability can often cloud our vision, making us doubt our paths. It taught me the importance of having friends and mentors who not only support but also challenge us to rethink and recommit to our core missions,” he reiterated.

Final Advice for the Youth

“Do not be disheartened by rejection. If you are certain of your idea’s value, persevere. The lack of immediate support does not reflect the worth of your innovation; it often means you are ahead of your time. Your resolve to push forward can transform an initial rejection into a groundbreaking innovation that reshapes the market.

“Remember, every great journey begins with a believer, embrace vulnerability as a strength, not a weakness. It is a sign of your commitment and your willingness to challenge the status quo, which are essential qualities for anyone looking to make a significant impact. Let’s continue to innovate, inspire, and influence the world for the better.

In the words of the African proverb, ‘The lion doesn’t turn around when the small dog barks. So, keep moving forward, and focused on your vision, regardless of the noise around you. For you are going to have plenty,” he concluded.