Accra, Ghana, October 12, 2020//-Andrew Key, Managing Director for Africa of Network International, a leading enabler of digital commerce across the Middle East and Africa (MEA), has disclosed that the planned acquisition of DPO Group (DPO) will give his company much more direct exposure to the growth of Africa’s ecommerce market.
According to him, the acquisition of DPO, the leading high-growth online commerce platform in Africa, would help speed up the growth of that market.Network has entered into an agreement to acquire DPO for approximately USD 288 million by Q4 2020.
Commenting on the transaction in an interview with African Eye Report, Mr. Key noted: “Ecommerce, particularly with Covid-19, is a significant growth area. Whether in Ghana, Nigeria, Egypt, South Africa or Kenya, no matter what country you point at, ecommerce is driving growth and is at the heart of what DPO is doing.”
What does this feat mean to Network?
When asked what the feat would mean to Network, Mr. Key explained: “DPO has been on Network’s radar for some time. They are a very fast-growing and very exciting business in their own right, focusing on ecommerce and the online acceptance space. They operate in 19 countries in Africa and they have over 47,000 merchant customers.”
“Their growth has been fantastic, and accelerated more by Covid-19, I think. This will give us more exposure in the online space,” Mr. Key added.
“From a footprint perspective, there are a lot of complementary countries where we are both operating in but there are differences. There are countries among the 19 DPO operates in where Network is in today and vice-versa.
We are in more countries (41) than they are. That will provide a significant synergy benefit to both the Network and DPO business where we can help each other in those markets through the relationships that we both have.”
Why DPO?
Mr. Key said: “It has always been a business we have been looking at and watching from afar. It has been on the top of our list. Our core strategy is very much organic and DPO falls into that. It is a growth accelerator that will add to our capabilities in Africa.” For warehouse services read more on how it can help your ecommerce business.
Mr. Key continued: “DPO will reinforce our position as the leading provider of technology supporting the growth of digital payments in Africa.
It will bring new features and functionalities that we can use for some of our regular customers and vice-versa.
Network International currently provides capabilities to banks operating in the ecommerce environment.We have our own gateway and other solutions. But DPO will bring another level that will build up our existing solutions and expand them.
Unlike Network, DPO has direct relationships with merchants so they are directly operating in the marketplace rather than through banks.”
Position of DPO after acquisition
“A key goal from Network’s perspective is to keep the DPO team in place, so the existing management will continue to operate the business. The DPO brand will remain. There is an existing plan that will continue to drive the delivery of the DPO business,” Mr. Key emphasised.
“Together we may co-create new capabilities and new solutions that we will take into Africa. DPO definitely brings capabilities that Network can offer to its existing bank customers and vice versa.
More opportunities
“If you combine the 41 countries of Network and the 19 countries of DPO, there is still an overlap which is great. We will work together in those countries, there are some opportunities there. For instance, if DPO is interested in a market that they are not operating in but we already are, then we can help them fast-track their entry into that market.”
Mr. Key continued: “We already have relationships; we already understand the regulatory environment there. We can give them some insights into the landscape on the ground given the relationships we have with the banks”.
Continuous growth
Mr. Key was emphatic that DPO would continue on its growth plan and further expand their footprint.
“We will provide support where we can and we will use those capabilities to help Network customers in the 41 countries that we are operating in.”
Plans and strategies
“DPO has been in the ecommerce business since 2006, so they are experts in that space. They have a very good understanding of the competitive environment of the countries they operate in,” said Mr. Key.
“They are constantly adapting, expanding and evolving their prepositions to the market to meet that competitive challenge.”
“The growth rates they are delivering show that they are doing good work. The marketplace, especially digital payments, is constantly evolving and changing so DPO will continue to adapt and evolve its products and capabilities.”
“It also will continue to invest in digital networks. We will continue the development of the business with the expectation that DPO will maintain its growth trajectory”.
Vision for DPO
“The vision is for DPO to keep on growing, expanding, and executing the plans they had prior to the acquisition, and we hope to support them in fulfilling those plans. For instance, we will help de-risk their entry into new markets where we are already present.
We will complement and support each other and mutually bring more capabilities. For instance, DPO supports the acceptance of mobile money payments so this is an area we can collaborate on to bring to our own customers. We will enable both our businesses to benefit and grow.”
Assurances
Mr. Key assured that NetworkInternational would provide support for DPO in technology investment where it is needed.
He was quick to reiterate that their customers will benefit from what each has to offer.
“We will focus on bringing our synergies to our customers. Network customers will get access to everything that DPO has to offer, and DPO customers will also get access to everything that Network has to offer”.
By MasahuduAnkiiluKunateh, African Eye Report
