My Story On Why I Left Econet Nigeria, Founder Strive Masiyiwa Revealed
In his teaches, as posted on the blue app ”the Facebook”, Strive Masiyiwa revealed by narrating how he left Econet Wireless Nigeria., Econet being the first mobile network operator to have arrived in Nigeria, Said the Zimbabwean billionaire and businessman and article we have read, love and knew our readership will also find it lovely. so we have decided to share with you guys
Read it. and try to comprehend, by so doing you are bound to learn one or two things from the Zimbabwean billionaire and businessman and founder of Econet Wireless Nigeria., sold and Now AirTEL
Here is how his narrative began #Reflection: Deep calls unto deep!
Mr. Strive Masiyiwa Write’s
I went to Nigeria at the end of 2000 for the first time. I spent a year developing a Business Plan to enable us to bid for a license. I registered a company Econet Wireless Nigeria. Under the business plan, we needed $300m for the license and $100m to launch the network.
I approached 20 investors, who agreed to put up all the money. I had no money of my own to contribute because I came from Zimbabwe. All I managed to put in was the cost of developing the Concept and putting my name [Econet].
I was the founder of the company, and would eventually launch Nigeria’s first mobile network.
They offered me 5% equity as founder, plus management of the company with a 3% revenue share. I ACCEPTED! It was generous.
The investors had 95% of the shares. They controlled the board, and I sat on the board together with my appointed CEO. I had no special voting rights [they refused to even consider it]. I could be sacked on short notice.
Our dispute was not about my share of the company. They even sacked me as Manager of the company after 2 years and changed its name. That was also not the dispute!
The dispute came as a result of a Right of Pre-Emption: Under the SHA [Shareholder Agreement] any shareholder could increase their shareholding before new investors.
Shareholders who did not like me, and wanted another operator to buy in, blocked me from increasing from 5% to 30% since I had managed to raise the money.
We went to Arbitration, and I won the case after 10 years. I then sold my 5% to the new major shareholder and put the money into Liquid Telecom [now Liquid Intelligent Technologies!]. It is now worth more than the Nigerian business!
What did you learn?
When Steve Jobs died, he owned less than 1% of Apple!
All through is not easy to do business in Nigeria as most of the government policies are hash to the business and start-up, but we did still make it
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Credit : Strive Masiyiwa Facebook Page