Buying a Social License to Operate
Is institutional anchoring a gift or an insurance premium
Written by Olumide Olusegun, Founder & Managing Director, Splitbox Limited.
Buying a Social License to Operate.
Splitbox Journal • Questions Worth Asking
A ten-year social commitment is not a philanthropic gift. It is a calculated insurance premium against sovereign risk.
OPay recently committed 1.2 billion Naira to scholarships across 40 tertiary institutions. Simultaneously, Uber is exiting Nigeria after 12 years. The contrast is the lesson. Uber remained a digital layer on top of the economy. OPay is buying its way into the social fabric.
For a foreign-backed operator, the cost of being an outsider is regulatory hostility. This human capital spend is a strategic hedge. By funding the education of the middle class, OPay makes itself too embedded to fail.
Investors must evaluate the Social License line item in their own portfolios. It is not a cost. It is a moat. If you are not anchored in the institutions of your host country, you are just a guest waiting for your visa to expire.
Explore more founder notes: splitboxltd.com
— Splitbox Journal
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