–Valentine Obi, CEO of eTranzact Global, discusses his career journey
Valentine Obi, CEO of eTranzact Global, shares his entrepreneurial journey with African youth to encourage and guide them to avoid pitfalls and persist with their dreams despite the challenges.
He said that in Africa, the entrepreneurial journey often begins with excitement about an innovative idea, but soon clashes with the realities of financing, regulation and gaining markets, which can severely dampen the entrepreneurial spirit.
Unlike other regions, African entrepreneurs have fewer role models to follow, but the importance of learning from those who have paved the way cannot be overemphasized. As the African proverb goes, “You can see further by standing on the shoulders of others.”
He recalls that his journey began in Nigeria in 2002, when mobile technology was barely widespread in the country, with only 50,000 mobile phones and limited access to landlines.
At the time, the government started issuing mobile licenses, marking the beginning of the mobile revolution in the country. He observed the change and envisioned a mobile payment system that would transform the flow of money in a country that relied primarily on cash transactions.
Armed with this idea, he approached potential backers, first the Central Bank of Nigeria (CBN), then commercial banks, but was rejected every time.
“The look on the CBN director-general’s face was as if he thought we had nothing to do except listen to fantasy stories. After my presentation, he politely escorted me out of his office, saying, ‘send us your report once you start working’. There were no licences. It was only in 2012 to be precise that the CBN started issuing licences for mobile money operators,” he said.
To complicate matters, his meetings with commercial banks were more disappointing than his meetings with regulators. But he persisted because he believed in his vision and was convinced it was only a matter of time before it came to fruition.
“From the banks’ perspective, the initial refusal is understandable. When we first brought banks together to present our solution, tests that worked perfectly in our offices failed. SMS we sent to enquire about balances didn’t arrive on time; they finally did, late at night. In Nigeria, it could take almost a whole day for an SMS to reach the phone next door. So how could banks build their payments platforms on such an unreliable network,” he wondered.
“But we persisted. My vision, which was clear and revolutionary to me, seemed utterly implausible to them. They couldn’t see what I saw – a future where mobile banking and payments would lead the payments industry. Back then, I used to give presentations with titles like ‘The Death of Cash’. Twenty years later, cash still refuses to die, but we’ve still undermined its self-esteem,” he stressed.
Frequent rejection might have been a sign to give up, but instead he believed that staying ahead of the curve meant walking a lonely path, which confirmed the novelty of his ideas.
“I didn’t get discouraged. Despite having no outside support, I funded the project with my own savings, my wife’s help and a small dedicated team who believed in the potential of what we were building,” he said.
This is a clear demonstration of perseverance and self-confidence, rare values he encourages in young people aspiring to succeed and survive in the entrepreneurial ecosystem.
“On April 6, 2003, just a few months after launching, we began to receive recognition for our efforts when we received the Computer World Honors Gold Medal Award in San Francisco’s Silicon Valley for our innovative and visionary use of technology to create and promote positive social, economic and educational change.
“This was a huge encouragement to the team because it meant we knew the world was watching what we were doing. This external recognition was important, but it was the support we received from within Nigeria, including an invitation from former President Olusegun Obasanjo to discuss our technology after winning the award, that really propelled us forward,” he said.
Fast forward to 2008, when Apple launched the App Store, eTranzact became the App Store’s first mobile banking and payments app. At the time, the Play Store was called Android Market, and eTranzact was there too.
These two inventions set a precedent for the proliferation of banking apps around the world, but interestingly, at the time, 90-95 percent of Nigeria’s population did not own smartphones.
“So who do you want to serve? But I believed and was convinced that this would be a tipping point, not just for eTranzact, but for mobile banking and payments in general,” he said.
How long do entrepreneurs have to persevere?
Obi said most entrepreneurs wonder how long they should continue pursuing their ideas if regulators and the market are not interested, but they need to persevere as it can take years before they finally get a breakthrough, while also gaining more knowledge on how to further improve their product or service.
“Many of you may be wondering what tenacity means in building not only a company but an entire new industry. In our case, it was continuing to move forward for years without immediate results, facing not only the challenge of introducing a new product, but the challenge of creating and nurturing a market for that product. Tenacity in this situation is not just about continuing to operate; it’s about educating, adapting, and making an unwavering commitment to ongoing engagement with all stakeholders involved.
“During these long years, it was natural to feel weak. There were moments when the enormity of what we were trying to achieve weighed heavily on me. Despite the deep conviction in our vision, repeated rejections and setbacks made everyone question their path. However, I learned that vulnerability is not a sign of weakness, but a reflection of the courage to take risks that lead to big changes,” he stressed.
Beware of attractive deals
The CEO warned that entrepreneurs should be aware that attractive deals can come their way when impact investors are able to see the potential future prospects.
“In the process of building eTranzact, a key moment came that tested not only 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 and financial pressures of pioneering a new industry led me to consider selling the company.
“A group of foreign banks expressed interest and the offer of $15 million was attractive. It seemed like a way out and maybe an opportunity to secure financial stability and get out of the constant struggle,” he said.
He said having a trusted confidant helped him to stay focused and persist with his dreams, and urged young people to seek different perspectives and share ideas with experts, trusted friends and business minds when they reach a crossroads.
“On my way to the airport, with my mind full of doubts and what ifs, I visited my friend and brother, Zach Wazala, who was then the CEO of Econet Wireless (now Airtel) in Nigeria. I told him about my decision to sell and was on my way to Washington DC for the final negotiations. Zach’s response was both shocking and enlightening.
“He said, ‘Val, you’re acting like Esau. Are you wanting to sell your birthright?'” He continued, “For every vision, God appoints a manager. In eTranzact, you are that manager, but your actions call into question that appointment.”
Obi said his friend’s words resonated with him and at that moment he realised his venture was not just a business but a responsibility, a calling that he had to let go.
The metaphor of selling his birthright helped him understand the long-term impact and potential legacy of eTranzact.
He says that conversation was a turning point. “I decided not to sell the company, and instead chose to embrace challenges as part of my journey. This decision was not easy, but it reminded me that vulnerability often clouds our vision and makes us question the path we are on. It taught me the importance of having friends and mentors who not only support us, but also push us to rethink and recommit to our core mission,” he reiterated.
Final advice for young people
“Don’t get discouraged if you get rejected. If you believe in the value of your idea, keep persisting. If you don’t get immediate support, it’s not a reflection on the value of your innovation; it often means you’re ahead of your time. If you’re determined to move forward, initial rejection can turn into a breakthrough innovation that changes the market.”
“Remember, every great journey begins with a believer and embrace vulnerability as a strength, not a weakness. It’s a sign of your commitment and willingness to challenge the status quo, an essential quality for anyone who wants to make a big impact. Let’s continue to innovate, inspire and influence to make the world a better place.”
As the African proverb goes, “A lion does not look back when a little dog barks. So, regardless of the noise around you, stay focused on your vision and keep moving forward and you will surely gain a lot,” he concluded.
