He is the African banker with a sparkle in his eye, spotting promising opportunities in the expansive and often chaotic realm of Nigeria’s informal economy.
Uzoma Dozie – a former chemist turned entrepreneur – hails from one of Nigeria’s wealthiest and most powerful families.
At 55, he is embarking on an entrepreneurial journey aimed at harnessing the substantial wealth and growth potential present in Africa’s largest economy’s vast informal sector.
This new venture was sparked by Dozie’s tenure at the family-owned Diamond Bank. Witnessing a threefold increase in the digital banking customer base, he realized it was time to launch his own initiative in the technology realm.
The drive for this new project intensified in 2019 with the $235 million merger between Diamond Bank and Access Bank, leading to the formation of Africa’s largest bank, serving 29 million customers.
Following the merger, Dozie stepped down as CEO and initiated a new venture called Sparkle, a mobile-focused digital platform aimed at millions of predominantly informal retailers, utilizing AI to offer more affordable banking services.
“I am a banker who understands technology. In banking, it’s crucial to know how to secure wealth and manage risks,” he states from Lagos.
When Sparkle was introduced, it raised a few eyebrows within the banking sector due to its name’s similarity to the family business, but Dozie embraced this connection while emphasizing the distinct paths they have taken.
“The name Sparkle is intentional. It represents a modern digital version of Diamond. What do diamonds do? They sparkle!” he explains.
“In comparison to my current business setting, Diamond Bank feels rather antiquated. This has been a true learning experience… Sparkle was founded by a team of 20 under-35s.”
Prodigal son
The company’s website refers to Dozie as the “chief sparkler,” and indeed, he radiates a rare energy. While he may not be the wealthiest entrepreneur in Nigeria, he certainly ranks among the most accessible. Whether in
Davos or Dulles International Airport in Washington, Dozie is always ready for a jovial exchange and a brief chat.
His friendly character is partly inherited from his 85-year-old father, Pascal Dozie, a distinguished figure in West African business, whose remarkable journey is defined by exceptional wealth creation skills.
In the late 1990s, Dozie Sr was pivotal in helping the fledgling mobile network MTN secure local investors for its entry into Nigeria. His goal was to raise 40% of the capital locally. He tirelessly visited countless offices and even reached out to Nigerian expatriates in Washington and New York. Yet, local investors remained doubtful, and he ultimately managed to secure only 20% of the necessary funding: other sources filled the gap.
However, in a 2016 conversation, MTN proudly announced its 60 million subscribers, and those who invested at the start enjoyed returns of 20 times their initial investment.
“Many are now expressing regret for not investing,” he chuckled in Lagos.
He is also likely the only millionaire on the continent who shared a classroom with Rolling Stones’ leading man Mick Jagger.
The two were classmates at the London School of Economics; Jagger left to record his first single in 1963, while Dozie continued his studies, first in London and later in Uganda.
“We thought Mick was quite extraordinary,” he once shared. “We were rather conservative, and he had long hair. As a Nigerian, it seemed unimaginable to me that he would trade his studies for a music career. Back in my village, music was a mere hobby for those with no other prospects!”
Beneath Dozie Sr’s success and confidence lay historical struggles and pain back home in Nigeria. Two of his brothers fought in the devastating Biafran War, which caused 100,000 military deaths and left an estimated 2 million civilians facing starvation.
His mother became ensnared in the refugee turmoil, and for several years, from 1967 to 1971, he was unaware of her fate. After the war, she managed to reconnect with him, prompting Dozie Sr to return from Uganda to care for her and help build the family’s wealth.
In 1971, he established his first business, the African Development Consulting Group (ADCG). The roots of what would become the family’s main business can be traced back to the mid-1980s, inspired by observing a stream of traders from his hometown of Owerri, in Imo State, eastern Nigeria, many of whom transported large sums of cash and faced theft risks.
The challenges encountered by these everyday individuals motivated the founding of Diamond Bank, which focused on money transfers that allowed traders to move without carrying large quantities of cash.
It all kicked off in a small third-floor office in Victoria Island, Lagos, supported by just 20 staff members and a mere $5 million in capital. Diamond Bank overcame early skepticism – many found it difficult to engage with a newcomer in the volatile Nigerian banking scene – to eventually serve 16 million customers.
This formidable legacy is what Dozie’s eldest son now aspires to uphold.
Get on my cloud
Dozie has made an impressive start with Sparkle, founded in 2019. Aiming at the retail sector, the company claims to have nearly 250,000 clients, processing 20,000 transactions daily, totaling over $420 million to date. While modest by Nigeria’s expansive banking standards, it marks a significant beginning.
Sparkle intends to outpace its competitors by utilizing AI and machine learning to its advantage. The platform employs AI to interact with clients speaking any of Nigeria’s 500+ languages, from Yoruba to Hausa. Additional offerings include tracking spending habits on daily, weekly, and monthly scales.
The target audience for Sparkle includes Nigeria’s 40 million micro, small, and medium enterprises, which make up over 80% of the workforce and contribute around 50% of GDP, even though many owners have never set foot in a bank.
“The primary goal of Sparkle is to assist in the formalization of small businesses. Most enterprises in Nigeria operate informally. The main barriers to formalization are the high costs involved,” he clarifies.
“It’s also about solidifying your accounts and transactions. That’s a key offering from Sparkle…we equip startups with critical tools: payroll, inventory management, invoicing, all available at an affordable rate,” Dozie elaborates.
With the creation of the African Continental Free Trade Area, I ask if he has plans to extend his reach across the continent.
“I’ve built a network of connections and relationships. It’s a long-term vision, but for now, we don’t need to expand into Africa as Nigeria offers a substantial market alongside a large diaspora,” he responds.
Capturing a significant share of a highly competitive market is a daunting task – I inquire where he sees Sparkle in five years.
“Who is my current competition? Traditional banks. Many traditional banks have maintained the same modus operandi for years. We aim to provide them with an alternative because the future is digital.
“I aspire to reach those individuals who have never visited a bank. We want them to say: ‘I want to start a business; I want to be with Sparkle.’ That’s our vision for the next five years.”
Finding satisfaction
Meanwhile, Dozie is leveraging his entrepreneurial expertise as an angel investor through his investment fund, Black Knights.
“Technology has enabled us to assist a greater number of people. I believe financial services can leapfrog through technology,” he asserts.
One of his investments is in a Nigerian furniture company, Taeillo – a firm he enlisted to furnish his Lagos office. He describes it as creating minimalist furniture similar to IKEA.
Founded in 2018 by Jumoke Dada at age 26, the company aims to provide Nigerian consumers with uniquely modern furniture that meets imported quality standards – with imported furniture to Nigeria valued at around $8 billion annually.
The company has garnered over $3 million through three funding rounds, including $2.5 million in a round at the end of 2022. By that time, it had expanded to Kenya, shipped nearly 10,000 furniture pieces, and served over 5,000 customers in both countries.
Black Knights invested in the company to support its growth, granting it credibility that draws additional investors, as per Dozie.
“Investors in my fund contribute not just capital but also financial insights and mentorship,” he notes.
“This angel investing brings me immense joy. I find myself thinking like my father. He invested for both financial and non-financial rewards. As one progresses through life, those non-financial returns provide a warm feeling, encouraging you to help more people.”
It appears the Dozie family finds fulfillment much more readily than Mick Jagger.
