Business Review, Q1 2021
The first three months of 2021 have been eventful for our company and we are confident business will pick up further as lockdown in Europe eases. Our main focus has been on two campaigns - the first an outbound assignment for UK energy company which is profitable, and the second is a scalable inbound project for a British Healthcare company. We also have more opportunities in the pipeline which we hope will come into fruition around Q3. Thankfully, lockdown is not so strict in Ethiopia so we've been able to get on with daily activities from the office as usual. I have met many talented graduates since December and the company has a growing pool of top candidates in Addis Ababa. It's been a positive period for the country as a whole and we've already seen how telecoms are improving thanks to privatization. Now is an exciting time for Ethiopia so this year should be a great one.
Teseteo have a fully authorized business and investment license here in Ethiopia. We work alongside an experienced accountant who deals with Government offices on our behalf. The business also runs a limited company from the UK + have partnered with global payment firm AFEX for all international transfers. In financial terms, the Ethiopian Birr is described as an exotic currency (not because it comes from an exotic place) but because it trades at low volumes and is volatile. This is why it makes sense for companies operating in emerging market countries to have a Forex account like ours held with CBE and that has worked well.
Teseteo have partnered with an ISP called WebSprix for all our internet connectivity. We are actually based in the same building which means our company has the best speeds and quick access to technicians. WebSprix is the first of its kind in Ethiopia and they have made things a lot easier than dealing with Ethio Telecom directly. Recently, they invested in wingu.africa group (an Africa-focused data center group). This company are one of four others to buy up land in Addis Ababa's ICT Park. The privatization of Ethio Telecom seems to be taking forever - but I'm sure we'll see more companies like it enter the market in the near future because of liberalization. WebSprix are at the forefront of internet connectivity in the country. Late 2020 they began deploying Cisco 8200 routers to improve services further.
Teseteo has an ever-growing database of top talent here in Ethiopia. Many of these people applied or got in touch via the company's in-house job board. Staff are at the heart of our business and we have created an environment for them to excel. As well as competitive basic salary + bonuses, there are many opportunities to progress. People can also gain experience in different industries through various campaigns. They currently include healthcare, manufacturing and energy. We have partnered with a number of prestigious organisations in Addis Ababa such as AAU and Goethe-Institut to source our employees.
The security of our clients and client’s customers is a top priority for Teseteo. That’s why our practices ensure outstanding safety, ethical behavior and consistent client contractual compliance. Teseteo are fully ISO 9001, iCO and PCI DSS compliant. We can also quickly obtain ISO 27001 and EUGDPR certificates if required. ISO is an independent, non-governmental organisation that brings together experts to share knowledge and develop market-relevant International Standards. The ISO 9001 certificate is awarded around an important set of guidelines ensuring a high quality of service. It must be reviewed annually and renewed every three years. Some of the required procedures - (i) control of documents/records (ii) control of non-conforming products i.e. preventing defects being sent to customers (iii) continual improvement through corrective and preventive actions (iv) internal audits. Maintaining well-implemented compliance with the ISO 9001 standard helps a company focus on meeting customer requirements and exceeding customer expectations. This happens through processes that are ever more effective and efficient in the business.
Teseteo are registered with the Information Commissioner's Office in the UK. This is a legal obligation to any business incorporated in Britain that processes personal information and means we can work on a wider variety of campaigns. PCI DSS allows us to take payments securely on behalf of clients. It includes IVR (Interactive Voice Response) and live chat. Transactions are made over the internet or phone with ease and safe in the knowledge that customer’s information is encrypted. IVR payments benefit from 24/7 service, no human error, reduced wait times and real time reporting. Other Standards and Certifications that can be obtained by us include ISO27001, COPC, Six Sigma + BCI Global Network Certificates.
Creating a strong staff culture is a priority for us. We hold weekly meetings to discuss performance and see where each of us can improve (including myself). Thankfully, there is minimal lockdown in Ethiopia, so we get the chance to celebrate successes together and are also planning a hiking trip down the line once the team expands further. Teseteo is a fun, progressive place to work with in-house training and lots of opportunities to advance. We look for fresh graduates and also those with a bit more experience. Innovation is one of our core values at Teseteo and the company holds weekly brainstorming sessions to come up with new solutions for our clients. We encourage staff to be entrepreneurial and have an ideas box in the office. It is an open yet hard-working environment and the more effort staff put in, the more they will get out.
Training is important to us and, best of all, staff get paid during. One of our clients is a British healthcare company who put employees through a rigorous 3 weeks with Blue Stream Academy. When done, they are ready and set to go live on the campaign. Blue stream Academy are standardizing the UK’s healthcare training for a consistent delivery of quality care and related services. Their mission is to delivery the highest quality patient care by implementing better staff education and development. Through the course; the skills our staff learn are listed below. This type of work requires high levels of confidentiality and managing personal, sensitive info so employees must be trained to the highest standards.
Blue Stream training modules and certifications:
Our agents multitask across voice, email, chat and social. Targets include time online, CSAT + a fast response to every interaction. Strong English is necessary for our clients so we screen thoroughly before submitting potential hires. As well as verbal, we also test for written abilities and have found the Cambridge English Language Assessment to be most effective. We have also recognized there are an abundance of other languages available in Addis Ababa and the rest of Ethiopia - they include French, German, Spanish and Italian.
Teseteo work on inbound and outbound. Both are great in their own right. We've found outbound to be more profitable in the short-term, whereas inbound scales slowly yet surely. I prefer inbound, but rewards from outbound can be great. In a recent outbound energy campaign Teseteo generated ￡60,000 + in sales over 3 months for a British client. We look forward to resuming this later in the year. It was for the Green Homes Grant Initiative - a scheme enabling homeowners and landlords to upgrade their properties with energy-saving features such as insulation or double glazing. ￡10,000 is available to those on benefits and up to ￡5,000 for homeowners who are not - www.gov.uk/guidance/apply-for-the-green-homes-grant-scheme. It was a slow starting campaign for us, but now looks very promising.
It's been a long wait, and looks like we'll have to hold on a little more. Last month the ECA announced an extension to April 5th for Ethio Telecom license bids. Companies people are talking about the most include MTN, Safaricom and Orange. KPMG started working with Ethio Telecom around a year ago and are heading towards the end of putting a full value on it. The East African branch have reportedly been paid close to one million dollars to get it done over the next few months. Deloitte have also been involved but on a consulting basis. In 2018, many large companies here adopted IFRS standards which obviously makes valuation a lot easier. Ethio Telecom recorded $650 mil in profits from 1 Jul to 31 Dec 2021.
There are over 18 brands of bank in Ethiopia. CBE has the most branches with around 1,300 nationwide. Teseteo hold a dollar Forex account with this bank. Their new headquarters is nearing completion and will be the country's tallest building. Although the Birr is currently declining in value - this often works to benefit foreign investors. That's because prices generally remain the same, and native currencies go a lot further. Although instabilities (i.e. Tigray conflict, coronavirus) have held back FDI in Ethiopia somewhat - 2021 has already seen some exciting advancements. One of them is CDC's pledge to invest $1 billion across Africa over the next 2 years. It includes a partnership with Vodafone and Sumitomo Group to bid for mobile phone licenses from Ethio Telecom. “This will be an important and exciting year for the telecommunications sector in Ethiopia,” said CEO Nick O’Donohoe.
Mining in Ethiopia continues to generate huge revenues and despite coronavirus, the sector has made $303 million since Sep 2020. That's more than the entire year before. Gold accounts for over 83% of output and the largest company is MIDROC. It is owned by Ethiopian multi-billionaire Mohammed Al Amoudi. After China, Turkey is the second biggest investor for Ethiopia. This month Foreign Minister Demeke Mekonnen was there on the 125th anniversary of their first diplomatic contact. Turkey's contribution currently stands at $2.5 billion across many sectors including textiles and cable manufacturing. Their new embassy in Addis Ababa will be inaugurated later in the year https://lnkd.in/d8s8wSz
According the the EIC, between July 2020 and January 2021 Ethiopia attracted $1.1 billion USD in FDI. The most popular sectors were manufacturing, agriculture and hospitality. New laws and systems have also been put in place to improve Ease of Doing Business - they include an online company registration platform. It is a one-stop portal for e-government services and it leverages information/communication technologies. I could have definitely done with this when setting up Teseteo and it is great to finally see something like it. Users are able to create individual accounts + gain access to information and solutions around tax, enforcing contracts, getting credit, electricity, construction permits and registering property.
Leading global payments technology company, Visa has affirmed its commitment to expanding digital payments in Ethiopia. They will be working closely with the country's financial ecosystem to bring benefits of digital payments to consumers, merchants, financial institutions and the government. New partners include Ethiopian Airlines, Bank of Abyssinia, Dashen Bank, Kifiya Financial Technology and BelCash Technologies. This February GIZ (German Development Agency) and Orange launched Addis Ababa's Orange Digital Center. It is the third of its kind in Africa and will strengthen employability of young people by training them in important skills. Occupying an area of 5000m2, this center will encourage innovative entrepreneurship and promote the local digital ecosystem. All the services provided are free-of charge, open to everybody and include practical skills training.
Teseteo are currently devising 2-week training programs tailored to each client and their specific campaign. This is especially relevant for fresh graduates who have excellent English but no Customer Service experience; a demographic we believe has the most potential in Ethiopia. We are looking at a number of options for training partner but one company that has stood out are called Lessonly - a US based education software company. They provide a fun, interactive way to learn CS skills (inbound and outbound) - www.lessonly.com
Although slower than we had hoped, Q1 has on the whole been successful for Teseteo and the company is turning over a profit. We are always striving to offer a better service to clients and they have been happy so far with the work done. Good recruitment is a major factor to the success of a business like ours but we have had to manage expectations on the type of people clients want. High quality English is very important, but the majority of people who speak it to that level in Addis Ababa don't have customer service experience. They are around - but not in abundance. This is why training will be a big cog in the wheel of our business moving forward especially for those clients who want to hire large numbers.