When a 10-year-old Dimitri Hadjipaschali started playing computer games his parents scoffed at the idea. Hadjipaschali was housebound, after breaking his ankle skateboarding, when he discovered his brother playing a game called Counter-Strike. This proved to be an existential moment on crutches; gaming became Hadjipaschali’s life.
“I just needed a crosshair and Counter-Strike was the game I kind of stuck with. I decided I was going to be a full-time gamer when I joined [eSports team] Bravado in 2008… I was doing it full time, trying to win competitions. Every time it came to a tournament I was trying to win. Every time I would come in second or third it was the worst day of my life for me. That’s when I knew,” he says.
Eight years later, Hadjipaschali is one of the rising stars in the next online craze in Africa. In bedrooms across the continent a generation of professionals is playing electronic sports, or eSports, for a living.
Competitive online gaming draws millions via streaming websites and where as much as $20 million can be at stake. It’s a bit like the Olympics for geeks and eSports has its own disciplines. Hadjipaschali is the captain for Bravado’s Counter-Strike: Global Offensive, or CS GO, team.
This is a first-person shooter game where a team of five tries to thwart bombers. In tournaments, teams play off in a best-of-three taking turns to attack and defend. The more games you win, the stronger your team becomes.
CS GO is one of the most popular games in South Africa. Globally it is the fourth highest-earning eSports game, with 5,396 professional players competing for $19.16 million in prizemoney at 1,710 tournaments, according to esportsearnings.com.
In Africa, this multi-million-dollar eStory is just beginning. The competition in South Africa is fierce. For years, gamers have battled for a few spots in international competition. That’s where the money is.
This is why Hadjipaschali is at a team boot camp in the cold hills of Meyersdal, south of Johannesburg. The team is here to train for the Electronics & Gaming Expo (EGE) in Cape Town. On the line is a shot at the international arena – an all-expenses-paid spot at the Electronic Sports World Cup and a chance to win $75,000, in Paris at the end of October.
“If we don’t take first place [in Cape Town] we don’t know when this opportunity will come again,” he says.
It’s going to be a long night for the team. On any given day, Hadjipaschali practices nine hours a day, often finishing at dawn. This weekend, with the promise of Paris looming, they will push even harder.
“A boot camp is for us to be more focused, to get more work done. It forces us to work when we are next to each other.”
It has been an historic and lucrative year for eSports in South Africa.
From Johannesburg is Barry ‘Anthrax’ Louzada, one of the old hands – which doesn’t take too long in this business. Involved in the industry since 1999, Louzada is called the South African godfather of eGaming. He slogged it out for 10 years as a competitive gamer around the world.
“Two years ago, you were at maybe a R100,000 ($7,000) total cash prize money for an event, because there was only one event a year. Now you are looking at over R2 million ($142,000) in just one year,” says Louzada.
These days Louzada is a shoutcaster, in English that means he gives live commentary on the sport.
“When I started out, it was a case of people driving around going to each other’s houses [barbequing] and LANing (network gaming). The internet wasn’t workable in this country for us to actually do any sort of online competing or playing. Now you have got hundreds and thousands of people coming to conventions,” he says.
As Louzada’s days as a competitive gamer are ending, Hadjipaschali’s are just beginning. If you saw Hadjipaschali walking down the street you wouldn’t think he was one of the top online gamers in the country. But those in the know ask for his autograph. For Hadjipaschali it’s more about the rush than the cash.
“In the beginning you can feel that pressure, that big match temperament, where you are not at the comfort of your own home behind your computer at your desk. When you are at home your hands aren’t shaking and it’s easier to play.”
Hadjipaschali’s next step on the road to fame and dollars was at a tournament in the cavernous Cape Town International Convention Centre on July 29. The team strolls in with the ease born of years perfecting their craft. They set up their computers, log in, huddle, and put on their headphones. Once the headphones are on, says Hadjipaschali, they won’t see anything but the screen.
With a crowd of almost a hundred cheering them on, it takes two hours to win their quarterfinal against a team called Energy. The players get up, shake hands and then make their way back to their hotel for some rest.
Hadjipaschali isn’t the only professional gamer in his family. His older brother Andreas, who founded Bravado, also had his shot. Now the team’s manager and coach, Andreas is even more determined to see South African gamers on the international scene.
“You only have one or two options, to make do with what qualifiers we have got [in South Africa] or we go overseas and we try qualify over there, but it gets really expensive. To go overseas, for five days with five players with accommodation, food, drinks we spent easily over R150-R170,000 (around $12,000). It’s different if you are living in Europe and there are qualifiers there all the time.”
Although the industry is booming, it’s not easy for the players of Bravado to play professionally. The team practises online every night. This is to accommodate players like 17-year-old Aran Groesbeek, who is still in school. His parents will allow him to play only once he has finished his homework. Ashton Muller, 24 years old, works part time as a manager at his father’s construction company. He dropped out of university to focus on gaming.
Robby da Loca spent a year in Sweden, the mecca of CS GO, trying to make it. But, with the high cost of living in Europe and having to work part time, he fell short and returned to South Africa. Da Loca is so captivated that when he first started playing, he would sneak onto his brother’s computer to play with his earphones off, so he could hear if his brother came home.
The final member is Ruan van Wyk, a qualified industrial engineer living in Port Elizabeth.
In Cape Town, the competition moves on to its final day. The atmosphere is intense as Bravado huddle before their semifinal. The auditorium is packed with fans. Shoutcasters blast their commentary. Behind the players is a giant screen, where the action is shown. Thousands more watch online. Bravado scores a crushing victory to get to the final.
South Africa has drawn the attention from teams around the world. One of those is Anthony Nell, manager of the South African branch of international brand Flipsid3 Tactics.
“What [Flipsid3 Tactics] are interested in is the player development in South Africa. They are looking for good players that are from parts of the world untapped by the rest of the world,” says Nell.
If you thought that gamers couldn’t earn a salary you would be wrong. Nell says even basic salaries for a player in a reserve league and lower would be around $5,000 a month, excluding prize money and endorsements.
The most lucrative eSports game is Defense of the Ancients 2 (DOTA 2). It attracts total prize pools of $86.7 million. At The International 4 in August, the crowdfunded prizes locked at $20.7 million and the winners, Wings Gaming, from China, walked away with $9.1 million for a week’s work.
Africa might not have as much cash to spare, but the pressure in Cape Town’s final is intense. Hadjipaschali and his team win a contested first set against their rivals, Carbon eSports, from Cape Town, who are playing at home.
Bravado suffers from nerves in the second set, throwing away an eight-point lead as Carbon force a decider. Ten minutes before the crucial final round that will make or break this team, Hadjipaschali gathers outside for a pep talk.
“Play calm and play smart,” he says.
The talk pays off and Bravado wins the final round clinically. The team leaps from their chairs shouting. The elation on their faces is priceless. It’s not the Olympics, nor the World Cup; but for these players it’s just as important. Hadjipaschali is so overwhelmed he cries.
“This is unreal. It may not seem like a lot to people, but this is what most of us do full time,” he says.
Ahead of Hadjipaschali and his team lies Paris and a possible $75,000, and that’s just the start.
How many more young men and women from Africa are going to go out on the international stages in search of millions, earning a living in a way their parents would surely fail to understand. Check your kids in the bedroom.
The Maverick In Tech
The founder of some of Nigeria’s best-known startups on the mistakes and the millions that made him click in the technology business.
Sometimes, the simplest business ideas can come from strange places, or even strangers.
In his first year studying law at Waterloo University in Canada, Iyinoluwa Aboyeji was approached by a stranger who asked to stay in his house.
“I was like ‘I don’t know you, you have long hair and you are white; I don’t know about this’, but I said, ‘ok cool’, and he stayed over and we became good friends.”
About a year later, Pierre, the friend, decided to head to Silicon Valley for his cooperative education term.
“He told me about this amazing world of Silicon Valley, tech and investments, and I was sold. A few months later, we decided to start our own tech company called bookneto.com,” says Aboyeji.
It was a platform that enabled students to download past examination questions and work with a team of people at the school to help answer them.
The company did decently for three years until it got sued by the university, but at least that marked a turning point in Aboyeji’s entrepreneurial life.
It turned out that the intellectual property for past examination questions belonged to the professors at Waterloo University, a fact that was “unknown” to the pair of entrepreneurs and they were found “guilty of piracy”. The venture was eventually sold to a professor who wanted to teach students not enrolled on campus, for a small fee.
“We had it for three years, and by this time, I had graduated and looking for a new adventure and I was pretty sure I did not want to run another business in Canada, so I had started looking at other markets and Africa was a big one for me, Nigeria in particular,” says Aboyeji.
After graduating, he returned to Nigeria in 2013.
His proclivity for identifying opportunities inducted him into the world of massive open online courses (MOOCs). The dominant players at the time were Coursera and Udacity.
According to a report by Component, globally, the MOOCs market is estimated to hit $20.8 billion by 2023. Aboyeji wanted in. He set up a company in Abuja called Fora.com focused on incorporating MOOCs into the university environment especially for courses that were relevant but not provided by Nigerian universities due to a lack of quality resources.
“I was very naïve. I imagined that it would be a breeze to build that business and learned the hard way that anything regulated doesn’t operate rationally. So, the regulators didn’t give me any approvals and universities were skeptical and didn’t want to be laid off so it didn’t work out. We ended up pivoting that business and ended up selling online MBAs instead. Our typical clients were young bank managers who wanted to get an MBA or advanced degree courses to improve their chances of being promoted,” says Aboyeji.
The firm began to gain some traction. People were paying for the application courses and Aboyeji decided to pilot a loan program where financial institutions would offer loans to students.
“So, we were making money but it wasn’t popping off. I went to New York with the team because we had just gotten some new funding and we had to meet the new investors. I had met a guy named Jeremy Johnson when he was in Nigeria earlier so I pinged him and told him what we wanted to do. I wanted to learn from his experiences. He agreed to meet for coffee in New York.”
During their meeting, Johnson expressed his idea about a new form of education geared towards skills rather than degrees. Aboyeji also talked about unemployment in Nigeria and how that represented a massive opportunity.
It was a match made in heaven.
“One of the things he told me was that he could not find a sales force engineer for $150,000 in New York. They just didn’t exist so I said, ‘man, I can train you sales force engineers’. And he said ‘if you decide you are going to pivot, what you are doing or adding to it… I would fund you and I will be chairman and we can do this together’. So, I said ‘someone is going to fund you to do a new business, why not’.”
Aboyeji had just stumbled on a new gold mine and Andela was born. He started with one person and began teaching him how to code. He repurposed the team from Fora into coding masters, bid masters and operational staff, and shifted the focus of Fora because they had the flexibility to do it.
“I don’t think at the time we had any idea how big what we were doing was. We did the first one, it was semi-successful, we trained the next four, which was really good. We put out a job description saying no experience required, we will pay you to learn how to program and we had over 700 applicants off Twitter and we knew we had something.”
They whittled down to about four or five people that completed that program. To find work for his new coders, Aboyeji used Upwork, the popular freelance jobsite, to bid for jobs.
“We didn’t know anybody, so we bid for jobs, executed it and before we knew it, we had about 150 people in the room. That was how the transition happened from Fora to Andela,” says Aboyeji.
The company has since gone on to raise $180 million in venture funding from the likes of Mark Zuckerberg and other notable investors from Silicon Valley. Aboyeji left the company after three years in search of his next adventure but is still a major shareholder in Andela.
That voyage led him to co-found Flutterwave, an integrated payments platform for Africans to make and accept any payment, anywhere from across Africa and around the world. Under his watch, the company processed 100 million transactions worth $2.5 billion.
Turning his eyes firmly on future opportunities has led Aboyeji to set up his own family office called Street Capital, with a focus on identifying passionate and experienced missionary entrepreneurs with the integrity and courage to flawlessly execute in Africa.
With a solid track-record of unearthing diamonds in the rough, Aboyeji hopes to empower the next generation of African entrepreneurs to achieve their fullest potential and help build some of Africa’s fastest-growing and most-impactful tech businesses.
The Movie Buff With A Happy Ending In Business
Kene Okwuosa continues to make profit selling the immersive cinema experience across movie halls in Nigeria.
If trailers of Simon Kinberg’s upcoming X-Men: Dark Phoenix have whetted your appetite for more action-packed cinema, you could take your pick from the likes of Hobbs & Shaw, John Wick 3: Parabellum or Avengers: End game. But as any film buff would tell you, watching these adrenaline rushes on DVD or TV is no match for a full-throttle cinema experience.
Kene Okwuosa is bullish about letting Nigeria’s 190 million population experience the thrilling excitement of the celluloid world. Using the theater to extract a sizeable profit from the Nigerian culture of socializing and communal engagement, his Filmhouse Cinemas has grown from just three screens to multiple locations across the country.
As part of the company’s strategic expansion plans, Okwuosa signed a pioneer deal to bring IMAX, the world’s most immersive cinematic experience, to West Africa in 2016. In doing so, Filmhouse has flipped a switch not just to beat competition from other local cinema chains, but also become one of the fastest-growing IMAX businesses in Europe, the Middle East and Africa.
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Quite a feat considering Okwuosa’s first stint at the cinema business did not have a happy ending.
The year was 2008 and Okwuosa and his partner at the time, also named Kene, were desperately looking for greener pastures beyond the borders of the United Kingdom (UK), where they were both employed as assistant general manager and general manager respectively at Odeon Cinemas.
“I had a conversation with Kene on the first of December 2008 and he was saying there is an opportunity with a friend of his who was an investor in Nigeria and we could go back, set up a company and create a great product in Nigeria. I resigned from my job on the second of December, I saw my family on the third of December and I caught a flight on the fourth of December after not being back in Nigeria for 11 years,” says Okwuosa.
And their voyage back home was favored by lady luck. A South African company at the time was exiting the Nigerian market and their assets were up for grabs. With the help of their investor, the pair bought up the assets and just like that, Genesis Deluxe Cinemas was born. It was a magical moment in the lives of the newly-minted entrepreneurs.
With three chains of Genesis Cinemas under their belt, the pair were ready to reap the profits of their entrepreneurial pursuits until everything went belly up.
“A year later, that deal went so bad we had to exit. Myself and Kene exited the company to our dismay. The private investor owned most of the business and there were issues between the investor and my partner relating to a slight misalignment of the company. We were torn between either staying in Lagos or going back to the UK. We decided to stay and tug it out,” says Okwuosa.
The pair had to downsize from the guest house they were staying in to a smaller flat and survived on noodles, while they hatched their next plan. They turned their living room into an office and went back to the drawing board.
Okwuosa believed there was still a market in the cinema theater business and he was not wrong. According to PricewaterhouseCoopers, the Nigerian film industry is globally recognized as the second-largest film producer in the world. Total cinema revenue is set to reach $22 million in 2021, rising at 8.6% CAGR over the forecast period.
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The cinema industry is one of the priority sectors identified in the economic recovery growth plan of the federal government of Nigeria with a planned $1 billion in export revenue by 2020. Furthermore, the National Film and Video Censors Board estimates the Nigerian movie industry needs at least 774 cinemas across the country for it to tackle the menace of piracy.
“So, for two years, I was literally waking up and going to every single office trying to pitch and raise money. We didn’t know anybody and we are not sons of rich men, we had already failed with Genesis, we had no assets or collateral. We were literally telling people we were going to modernize Nigeria’s entertainment scene and everybody was looking at us like we were crazy.”
In 2009, the Intervention Funds, created by then president Goodluck Jonathan to boost the Nigerian creative industry, would prove to be the lifeline Okwuosa and his partner so badly needed.
“I am proud to say we were the very first to access that fund in 2012, which was about N200 million at the time which, when you look back is not that much but considering the exchange rate, it was over $1 million. It was enough to help us kickstart Filmhouse. We had nothing, so that particular facility was largely uncollateralized,” says Okwuosa.
The fund took a bet on Okuwosa and his partner and it paid off. The loan was used to open their first three-screen cinema in Surulere, Lagos.
“It had a slow start but ultimately grew to be one of the biggest locations in the country and that organic growth led us to open two more cinemas prior to our second round of investors, which was private equity money from African Capital Alliance.”
The investment helped Okwuosa to scale to 10 operational locations across six states. The original vision when Okwuosa started Filmhouse was to be the biggest and best cinema and create an amazing space where people could escape into a different world.
Two years after, the company set up the production and distribution part of the business.
Filmhouse now represents about 50% of tickets sold in Nigerian cinemas, according to Okwuosa. With just a dream to conquer the Nigerian market, today, Filmhouse has a vision to become a media entertainment company.
In addition to IMAX, the company represents other international brands like Warner Bros and Lionsgate. With the institutional investment, Okwuosa has strengthened his core team, which no longer includes his former partner, as well as providing the company the impetus to scale with the right mind and right trajectory.
With a GDP of $375 billion making the Nigerian economy the 30th largest economy in the world, Okwuosa believes there is still a big chunk of money to be made from the entertainment and media space.
“I think we haven’t even scratched the surface of this industry and we want to position ourselves at the forefront of Nigerian entertainment.”
Advances In Nigeria’s ‘Burglar Watch’ Industry
The escalating safety and security issues in Nigeria raised the alarm for this innovative entrepreneur.
Today, organizations not only face escalating risks but also the certitude that they will face a security breach at any time, if proper precautions are not taken. Such was the case for Paul Ajibulu when his office premises were ransacked by thugs in Adeola Odeku, Victoria Island, Lagos.
“We had just got our office fully furnished with MacBook computers and the whole works. When we came in the next day, we found the locks broken and all the office equipment had been looted. I lost about $20,000 in all that day and that set our business back for a couple of months,” says Ajibulu.
To solve his problems, he reached out to Extreme Mutual Technique, an automated digital systems solution and renewable energy service provider.
The company says it boasts top-tier clients such as MTN, the Embassy of Sierra Leone, South African Breweries, and Africa Finance Corporation, amongst many others.
Akpobome Ojoboh, its founder and Managing Director, is adamant his systems are a must-have for every organization in Nigeria.
“We initially started the business called Extreme Surveillance Systems limited. Coming from my previous background, we decided to focus on CCTV and digital security. Considering the fact that Nigeria was being terrorized by security mishaps, we decided to [resolve] that,” says Ojoboh.
Safety and security have never been discussed in Nigeria as they are now. Threats are from everywhere, and at all places. Routine security checking at offices and shopping mall entrances has become the norm.
The idea of preventing crime is an appealing twist in today’s times and although it’s comforting for many to imagine a competent police officer monitoring every camera in Lagos, the question remains whether CCTV systems really do prevent crimes from happening or do they merely help in nabbing a criminal once a crime has occurred.
In a city like Lagos where you have constant disruptions to power, the long-term success of these systems presented significant hurdles for Ojoboh in the early days.
“There are so many limitations to digital security vis-à-vis the lack of a proper database that even when you have [identified] the culprits, you cannot find them. Furthermore, there were limitations to how people took ownership of their equipment because there was [often] no power. So, you put a system and people say ‘what if there is no power’?”
To combat these challenges, Ojoboh decided to provide another solution, by moving into the world of inverters.
“Then again, these inverters run down when there is no power to charge them so we went into renewable energy called solar to back up our inverters and digital solutions. That is when we changed the business to Extreme Mutual Technique Limited,” says Ojoboh.
Security is one of the largest businesses in the world, according to Ojoboh.
He has seen an increase in more families opting for peace of mind by having big brother watching over their loved ones whenever they cannot be with them.
“When I first became a mum, I would always worry incessantly about my daughter left alone at home with my nanny. Then, we started noticing strange marks on my daughter and I had heard about people mistreating children they cared for but I never thought it would happen to me. I reached out to a security company to install a camera in the house and lo and behold, I saw the nanny hitting my daughter. My whole world crumbled,” says Rebecca Gyan, a grocery store owner in Accra.
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“You have to be prepared because if you are not, then you almost cannot stop any security breach. It helps you to know some proactive measures to protect yourself. If you have a CCTV system and you notice there is a particular group of people visiting your building, you will be able to notice and react,” says Ojoboh.
As organizations become familiar with probable threats and vulnerabilities, they will be able to establish both preventive measures and responsive systems, to decrease the likelihood of intruders and attacks.
Since starting out in 2007, Ojoboh has grown the team to a 40-member business spread across Lagos and Abuja. The company has also moved into IT and engineering services in the areas of energy infrastructure, home automation, fire safety and digital security solutions.
With power still an issue in Nigeria, Ojoboh sees the future of his business in the area of renewable energy to power his systems to provide that all-important peace of mind to his clients.
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