No dividends for Multichoice shareholders as company channels funds into Showmax
Multichoice continues to ramp up its bet on streaming platform Showmax, this time denying shareholders dividends to make further investments in the platform’s growth. According to its annual results for the year ended 31 March 2023, Multichoice is doubling down on its streaming bet, Showmax, with the company choosing to not issue shareholders dividends. Instead, it will continue investing in the streaming platform. “In view of the challenging South African market, the uncertain currency outlook, the funding needs of the Rest of Africa business and the investment required to drive Showmax to become the leading streaming platform on the continent, no dividend has been declared for FY23,” the company stated. In April, Multichoice announced a partnership with US media giant COMCAST, owners of NBCUniversal, and its UK counterpart SKY to create “Showmax 2.0” which would be a new platform powered by Peacock and 70% owned by Multichoice and 30% (stake sold for $30 million) owned by the aforementioned UK and US partners. On paper, leveraging Peacock’s “scalable and feature-rich technology”, Multichoice’s wide array of local content combined with global content from its partners, Showmax 2.0 would give top global streaming platforms on the continent like Netflix and Disney+, as well as African platforms like Wi-flix, a run for their money. The platform is slated to go live in the second half of the 2024 financial year. Multichoice’s roadmap for “Showmax 2.0” (Image source: Multichoice) If its results are anything to go by, it looks like Multichoice will be doubling down on that strategy. The company not only explicitly states that it wants to make Showmax the biggest streaming platform on the continent, it also adds more detailed forecasts, including $1 billion revenue in five years, trading profit breakeven by 2027, as well as a 25% EBITDA margin, and 20% free cash flow margins, both at scale. Additionally, Multichoice has also bumped up its growth expectations of the platform by a multiple of three by 2032 and content production by a multiple of 10 by 2033. To support those ambitions, Multichoice has been and will continue to funnel funds towards the Showmax moonshot project for the foreseeable future, a bet which has thus far had a significant impact on the company’s margins, which reduced by 7% this past financial year. “The impact of South African macro challenges, together with the group’s increased investment in Showmax, caused SA margins to contract to 24% from 31% in the prior year,” the company added. A worthy bet or a case of desperation? Multichoice still does not explicitly state the number of Showmax subscribers, a trend they have stuck to since the launch of the platform in 2015. Some experts suggest that this might be because of the platform’s meagre number of subscribers. But according to a metric they do share on their financials, which is the growth rate, the number of paying subscribers grew by 26%. The bet seems to be getting well received by shareholders, though, as evidenced by the marginal increase in the share price after the release of the annual results. The bump, which now means it is trading at 526 cents, takes Multichoice’s share price from the 495 trading price it struck in June, its lowest trading price since June 2020. Taking that marginal price movement into consideration, it appears that shareholders understand why they have to forego their dividends to support the platform’s growth. However, the share price is still down by 38% over the last four months, despite announcing two major products, Showmax 2.0 and Moment, the company’s fintech bet, in that time period. That trend should perhaps have the company executives a bit concerned. An amalgamation of factors, including core offering DStv’s decline, which lost over 100,000 subscribers between January 1st and March 31st, lack of shareholder excitement over new opex-heavy products, as well as tough macroeconomic conditions fuelled by inflation and load shedding in the company’s core market, South Africa, might prove to be enough to induce an existential crisis for the company. The remedy to the crisis, perhaps, might be the company finally giving in to the flirtations by French media giant Canal+ which has been steadily acquiring Multichoice’s ordinary shares over the past year. In February this year, the company had hitherto acquired a 30% stake in the South African-based company, 5% away from the 35% stake which would require Canal+ to make a mandatory offer for Multichoice. On its financial results booklet, Multichoice mentions DStv, its core product, only seven times, compared to the twenty times it mentions Showmax, perhaps pointing to how much the company is betting on the success of the platform as the last straw to keep the company from going under.
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👨🏿🚀TechCabal Daily – MultiChoice records 200% profit plunge
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning ICYMI, we relaunched our referral programme yesterday! Now, we can bribe reward you for saying nice stuff about us to your network. Plus, all sign-ups now have a double-opt-in feature. So if you’re referring someone to TC Daily, please ask them to check their inbox and confirm their email addresses so the referral can count! In today’s edition MultiChoice blames 200% profit plunge on loadshedding Kenya’s content creator tax has been slashed Telkom reports 76.6% plunge in profits Uber increases base fares in Nigeria Equiano is active in Namibia The World Wide Web3 Event: The Moonshot Conference Opportunities Streaming MultiChoice blames 200% profit plunge on loadshedding According to Multichoice Group’s annual financial results for the year, the company’s profits declined by over 200%, going from a R2.8 billion ($150 million) profit in the last financial year to a R2.9 billion($155 million) loss. Apart from the weak rand, the company also blamed the country’s intermittent power cuts, also known as loadshedding, as the leading cause for the turnaround. Image source: MultiChoice Is loadshedding to blame? MultiChoice stated that there was a noticeable increase in churn when loadshedding reached stage 4 and above, even when consumers had disposable income. “This is evidenced by the disconnect between the 290,000 growth in 90-day subscribers (that shows customers still value the group’s products) and the 140,000 decline in the active subscriber base at the end of March (customers are more selective when they sign up to avoid periods of excessive load-shedding),” the company said. There. However, could be other reasons why MultiChoice is losing subscribers. With the influx of streaming services like Netflix and Disney+ on the continent, MultiChoice has lost customers. In 2021, it warned that Netflix could kill DStv’s relevance. Zoom out: Loadshedding has become the constant reason for dire financial performances among South African companies. Telkom, which recorded a 76% plunge in profits for the year ended 31 March 2023, also pointed the finger at loadshedding. Moniepoint ranked 2nd fastest-growing African company Moniepoint is Africa’s second-fastest growing company, as shown in FTs latest report. We also processed 1 billion transactions worth $43 billion in Q1 alone. Read all about it here. Legislation Ruto reduces proposed content creator tax Content creators in Kenya can now breathe. A week after President William Ruto ordered review of Kenya’s proposed content creator tax, the tax has now been reduced to 5%. Per TechTrendsKe, this reduction comes hot on the heels of local bloggers, YouTubers, influencers and other content creators protesting against the tax. Kenyan president William Ruto What bill? A bill was newly proposed to extend taxation to the several ways digital content creators are now earning money. This includes payment gained from advertisements on websites, social media platforms, brand sponsorships, affiliate marketing, and even subscription fees which audiences pay to access content or programs. The Kenya Revenue Authority (KRA) even formed a special unit that will oversee tax collection from digital companies. However, local content creators said the tax was utterly unfair and amounted to a side-splitting case of double taxation. Days after the tax was announced, president Ruto said the bill should be reviewed so that the increased tax doesn’t become a burden that inhibits the digital economy which the country is trying to build. Telecoms Telkom reports 76.6% decline in profits Image source: Telkom Yesterday, Telkom’s annual results showed that the company is experiencing a decline in profit by 76.6% from 575.3 cents to 134.6 cents—in headline earnings per share (HEPS). The company also calculated the headline earnings per share without considering the effect of the restructuring cost of R1,065 million ($74 million) and the tax impact of R288 million ($20 million) on the profit after tax. What is HEPS? It is a financial metric used to measure a company’s profitability and performance. It represents the portion of a company’s net income or profit that is allocated to each outstanding share of its common stock. It is known as a main profit measure in South Africa. Why the decline? According to Telkom, the significant dip in profitability is attributed to a challenging operating environment caused by inflationary pressures and ongoing power issues in South Africa. Zoom out: Eskom, South Africa’s electricity utility, is currently implementing the most severe rolling blackouts, also known as loadshedding. This has resulted in households experiencing extended periods of up to 10 hours per day without electricity, causing disruptions to manufacturing processes and negatively impacting businesses. Experience Viva Technology Tune in to Europe’s biggest Startup and Business event here. Mobility Uber increases base fares in Nigeria Yesterday, TechCabal exclusively reported that Uber, a ride-hailing company, increased its base fare from ₦850 ($1.84) to ₦1200 ($2.62) in Nigeria. The new price adjustment also means customers will now pay ₦25 ($0.054) per minute. Uber’s Country Manager for Nigeria, Tope Akinwumi, told TechCabal in an email that the increase in fare price is due to the current fuel subsidy removal. Image source: Uber ”Following an in-depth review of the current fuel subsidy removal, Uber updated fares on the 3rd and 9th June on the app to reflect existing economic conditions. We believe these changes have helped better support drivers in increasing their earning opportunities. Furthermore, we lowered the service fee in February 2022 from 25% to 20% to help enable better-earning opportunities for drivers,” Akinwumi said. ICYMI: Base fares have been a source of disagreement between drivers and ride-hailing companies in Nigeria in the past week. Last week, the drivers embarked on a nationwide strike that lasted up until Monday, June 12. Zoom out: Although drivers and ride-hailing unions are dissatisfied with these new prices as they say it still does not cover their costs due to the recent hike in fuel prices, the union is also seeking a 50% decrease in commission and an end to the deactivation of drivers who refuse to work due to the low fares and attendant unprofitability. Internet Equaino cable
Read MoreKenya’s ICT regulator lifts the lid on 5G spectrum license fees
Kenya’s 5G network is led by Safaricom. However, the Communications Authority of Kenya, has not been forthcoming about 5G license fees, but there is a reason for that. While Western countries are leading in the adoption of 5G coverage, several African countries have been catching up with the 4G successor. Kenya, Mauritius, Madagascar, Nigeria, Seychelles, South Africa, and many others are among these African countries. In Kenya, for instance, the rollout is spearheaded by Safaricom, which launched in October 2022. However, several questions have been asked about 5G, such as its benefits to the ordinary person and how much the telco paid for a 5G licence from the country’s regulator, the Communications Authority of Kenya (CA). In a media workshop held by the regulator last week, TechCabal sought to understand why the 5G license cost hasn’t been revealed. For context, operators paid KES 2.5 billion ($18 million) for the 4G license, which was acquired first by Safaricom back in 2014. Telkom Kenya acquired it in 2017 and later by Airtel Kenya and Faiba in 2018 and 2019, respectively. According to CA, there are plans to announce the cost of the 5G spectrum license, but that will be done when more Kenyans would be able use the technology gainfully. For now, issues such as access to 5G devices, and their high cost, are barring Kenyans from testing the service. Availability is also limited to select towns and cities in the country. Unlike other spectrums with dedicated bands, the 5G spectrum is sourced from other bands, allowing for higher penetration and compression rates. It offers increased bandwidth capacity, enabling the transmission of large amounts of data quickly and efficiently. However, implementing 5G is challenging as it requires specific access gadgets and transmitters designed for 5G technology. “Other spectrums have a dedicated band. However, the 5G spectrum is sourced from other bands or concentrated bands, allowing for intensive utilization and higher penetration or compression rates,” said Derrick Simiyu, telecom compliance manager at CA, in a statement to TechCabal. “It aims to provide high bandwidth capacity, enabling the transmission of large amounts of data quickly and with clarity. Previously, heavy files that took too much time to transmit on other technologies can now be delivered without limits on 5G due to its heavy compression levels.” Different countries propose various bands for 5G deployment, but the frequency application distinguishes it as the fifth generation. The regulator adds that while initially expensive, as more users adopt 5G, economies of scale are expected to reduce pricing. Currently, 5G pricing in Kenya is based on deployment and charged per link. If the operator chooses to install 5G services in a given area, it will pay the fees for that specific area. However, standardised licenses will be introduced in the future, allowing operators to access 5G at a set fee. CA says it will let Safaricom run the service for a while and plans to announce the license fee in about two years. “5G pricing, for now, is link by link. The amount of deployment is what is charged. At the moment, we have come up with a trial period. In the future, say after Safaricom runs 5G for two years, we will now come up with a standard license, and every other operator will access it at that fee,” Simiyu concluded.
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As LagRide drivers push for lower daily repayments, it’s time to ask if vehicle financing is right for Nigeria
Drivers on the ride-hailing app, LagRide, say the recent rise in weekly repayments makes their lives difficult. Their complaints will raise questions about the suitability of vehicle financing in Nigeria After the car he had used to drive for Bolt for two years broke down, *Akinwunmi moved to LagRide, a government-backed ride-hailing service. LagRide uses a “lease-to-own” model, making it different from Bolt and Uber, which need drivers to have or own their cars. The lease means that LagRide drivers own the vehicle after a ₦700,000 downpayment and subsequent weekly payments. LagRide offers two cars: a GAC mini SUV and a saloon car, and drivers pay ₦10 million over four years to own the cars fully. Unable to afford the downpayment, Akinwunmi took a ‘partner-proxy’ offer, a hire purchase arrangement between partners who make down payments for the LagRide vehicle and lease it out to drivers. The proxy, a.k.a the driver, makes repayments on the car while still paying a commission to the partner. The ownership of the car passes on to the driver after four years. One year into this arrangement, Akinwunmi’s partner abruptly ended their partnership. He told TechCabal, “My partner reneged on our deal, saying that he has spent a lot on the vehicle and would like to claim the vehicle.” It left Akinwunmi without a source of income. *John, another LagRide driver, confirmed that partners often renege on agreements. “Partners don’t follow their word on their agreement; they do this because the vehicle is new and is not available in the market at the same price LagRide is offering it.” LagRide offers its GAC vehicles (a sedan or a mini SUV) for ₦10 million, cheaper than the market price of ₦12-14 million. Tumi Adeyemi, the head of the solutions for LagRide, told TechCabal that because LagRide is not a party to any contracts between partners and proxies, there’s little the company can do. “Whoever LagRide enters an agreement with is the person who gets the car at the end of the four years, and there is a contract to back it up. Most complaints are about contracts LagosRide was not a party to.” However, partners reneging on agreements with proxies is not the only challenge LagRide drivers face. Several drivers told TechCabal about the financial strain and the high costs associated with asset financing. Asset financing model comes under question The asset financing model for ride-hailing has come under scrutiny lately. TechCabal reported in February that drivers who used Moove’s asset financing offering to buy vehicles to drive for Uber protested about the steep repayments. Rest of World also reported that drivers who defaulted on weekly payments had their cars seized. As with most asset financing models, LagRide vehicles remain the service provider’s property until the driver completes payment. Drivers now pay ₦9000 (up from ₦6500) daily for four years to claim vehicle ownership. It’s similar to the price increase Moove instituted in January. A TechCabal report showed that drivers had to complete 12 rides daily for six days a week and remit $20 (₦9,400) every day to Moove while still having to pay a commission to Uber. Eventually, Moove reversed the price increase. LagRide drivers are hoping for a similar outcome. Stephen Mark, a LagRide driver in Ifako Ijaiye, told TechCabal, “It is not convenient, and we have challenges in driving, and when we lodge our complaints, all they care about is making money. Now, the petrol issue is there. There is no empowerment; they are exploiting us.” LagRide’s head of solutions, Adeyemi, disagrees with the drivers. “There is no basis for reducing daily repayments because the pricing model was designed to ensure drivers make about ₦10k daily net, approximately ₦280k monthly, and they are making more than this; we have the records.” A screenshot of the breakdown of a driver’s earnings on the LagRide app. Drivers consider workarounds Some drivers say that their repayments would be easier if they could take interstate trips. “We can’t go offline or work interstate. Abeokuta here, you can’t go; how do you make your money?” says Goddey Christopher. It’s not something LagRide will consider, given the risks involved. Yet, pricing is at the heart of the back and forths between drivers and LagRide. Drivers complain that low fare prices on the app do not match the present realities of fuel hikes. Bolt and Uber recently adjusted their base fares to ₦700 and ₦850, respectively. LagRide maintains a ₦350 base fare, up from ₦300. Adeyemi told TechCabal that LagRide increased fares to match the effect of the fuel hike, but this decision led to a drop in ride demand. “This is because the price points are no longer as affordable,” he said. Several drivers we spoke to claim that LagRide’s 20% commission rate is unbearable and also complained of reduced patronage in select areas of Lagos. “There are some places in Ikorodu that LagRide doesn’t reach—because no one orders you when you are returning. People don’t like going to Ikorodu because you would not see riders coming back,” Christopher shared. As drivers continue to insist that these vehicle financing deals are exploitative, there are still broader questions about the sustainability of driving for these companies as a way to make a living.
Read MoreThis teacher-turned-Tiktoker is simplifying tech in Yoruba
Learning tech skills in indigenous languages can potentially increase access to digital education. Olalekan Adeeko, a teacher-turned-TikToker is making this happen. In September 2022, armed with his camera, Olalekan Adeeko recorded a humble introduction video where he shared his idea to teach tech in his native language—Yoruba. To his surprise, about three hours after posting the video on TikTok, he got several “We can’t wait” comments. At that point, he knew there was no going back. Before then, he had quit his teaching job to focus on TedPrime Hub, an ed-tech firm he co-founded in 2017. Having worked as a secondary school teacher for 15 years and professionally trained as a data analyst, Adeeko had one question on his mind: what could he do differently? The answer came: teach tech in Yoruba. Nigeria’s lingua franca, English, is the medium of instruction for digital education. Online learning platforms and resources are predominantly available in English, even though Nigeria has over 500 languages. And according to the United Nations Educational, Scientific and Cultural Organisation (UNESCO), receiving education in one’s native tongue can improve learning, learning outcomes, and socio-emotional development—in line with Adeeko’s cause. Globally, about 47 million people speak Yoruba as their mother tongue, while millions of others speak it as a second language. “I saw the need to democratise tech. A lot of people see tech as elitist or a field for the people that must have gone to the university and that it isn’t what anybody can actually relate with,” Adeeko told TechCabal over a call. He noted that the language barrier has made digital literacy difficult for many. Over the next few months, he would post over 300 videos on his TikTok page, garnering over 15,000 followers and counting. His one-minute videos teach uncommon tricks on using Microsoft productivity tools such as converting text to a table on Word, creating a barcode in Excel, or merging shapes on PowerPoint. As Adeeko’s TikTok page grew, so did his community. Posting an average of two videos every day, he now runs a YouTube channel—Anything Data—with over 3,600 subscribers and a Facebook page with over 33,000 followers. “The feedback has been what is keeping me going. People often tell me ‘I’ve been taught this many times but now that I am hearing it in Yoruba, I could actually learn easier’. It has been an amazing experience for me,” a visibly excited Adeeko said. Finding purpose The initial idea for the first-class computer science education graduate was to focus mainly on data analytics and artificial intelligence (AI) which he says are his forte. But the comments he received for his first set of videos led him to equally prioritise Microsoft productivity tools. And since Adeeko is a Microsoft-certified trainer himself, the work was a piece of cake. According to him, his videos on Microsoft Excel get the most feedback. “So I want to believe a lot of people are struggling with Excel, maybe for their work or whatever they do,” he said. Adeeko believes people watch his videos because he is a good teacher. He isn’t wrong: he has won several laurels in recognition of his work in the teaching profession including the notable 2020 African Union Continental Teacher Prize. “In my videos, I tend to use different scenarios to drive home my point. I use humour as well because I don’t want the videos to be boring. This makes it fun for people to listen to me,” he said. Making a difference Teaching tech tips and tricks isn’t novel as tons of YouTube channels do this already. But Adeeko says what makes his content different is the medium of instruction. “I think the reason why a lot of people love what I do is that I do it in Yoruba, not because of those things that I teach because they can actually go on YouTube and watch different videos. But because my content is in Yoruba, people who understand the language can relate more and comprehend easier,” he said. He, however, admitted that finding the exact Yoruba words for certain technical terms can be difficult. As a result, he uses both English and Yoruba in his videos. “When I started, I wanted to speak Yoruba all through my videos, but I was struggling to translate certain words. So I decided to use the regular Yoruba and the English words for certain terms for the sake of my audience,” Adeeko shared. Adeeko, who has now earned the moniker “Yoruba tech guy”, says he is frequently contacted by his followers to answer further questions about what he teaches. This, according to him, is his driving force. Speaking about reaching a wider audience, he says he is open to partnerships but in the meantime, he recently created his personal website where he collated all his videos. “I’ve been able to put all the links [to my videos] in an Excel or PDF sheet for anybody to just download, and then you can easily see the topic, click on the link and watch,” Adeeko said. He adds that while he isn’t sure that Nigeria has a plan to promote digital education in indigenous languages, he hopes that the government will consider it in the near future.
Read MoreInsights from Marc Tshibasu on the future of tech startups in Kinshasa
Noel K. Tshiani is the founder of Congo Business Network. In this exclusive interview for TechCabal, he discusses with Marc Tshibasu, head of Orange Digital Centre in Kinshasa, and they touch on the major needs of startups in Kinshasa and how the tech ecosystem is evolving in the country. With a rich background in sales, marketing, and talent development, he brings a wealth of expertise to the table as he shares insights on revolutionising innovation and fostering technology advances in the Democratic Republic of Congo. What is Orange Digital Centre aiming to achieve in Kinshasa, and what are its priorities for this year? Orange Digital Center’s mission is to promote innovation, enhance employability with high-value-added skills, and foster entrepreneurship among the youth. We bring together all the support programmes for young people and entrepreneurship in one location, which are free and open to all. These programmes encompass training, startup support, acceleration, and investment opportunities. Our focus on the integration of academic training with employment or entrepreneurship ensures that we generate a critical mass of competent and qualified entrepreneurs and young individuals who are ready to tackle the challenges of the digital economy. Additionally, we aim to extend our programmes to rural areas to reduce the digital divide and create a regional ecosystem. Orange Digital Centre 2.0 is built on four key pillars: 1. Scaling up: Strengthening activities and expanding the reach to a larger number of beneficiaries, particularly in the regions and provinces, through the establishment of Orange Digital Centre Clubs. 2. Women leadership: Implementing a program designed to provide priority access to individuals excluded from the digital world and to encourage women to become digital entrepreneurs. 3. Entrepreneurship development in priority sectors: Focusing on energy, environment, agritech, health tech, manufacturing, education, greentech, fintech, trade, and human mobility, aligned with the country’s priorities. 4. Strengthening impact: Establishing strategic partnerships with key players in the priority sectors. How do you envision the tech and startup ecosystem evolving in Kinshasa in 2023 and 2024? In my opinion, if efforts invested in training, support, and structuring of startups continue with unwavering commitment and with continuous monitoring of their progress, we can expect the emergence of Congolese unicorns by 2025. This achievement is feasible and attainable through synergy among various stakeholders, including entrepreneurs, incubators, support organizations, investors, and the government. What do you consider the main challenges currently facing startups in the country? What is the primary need of the startup ecosystem in Kinshasa today? Is it fundraising, skills development, or government support? And what role can Orange Digital Centre play in addressing these needs? The three aspects mentioned are pivotal in establishing the foundations of a flourishing ecosystem, especially now that legal instruments such as the startup act and the law on the digital sector have been put in place. There is no better time to be an entrepreneur in the DRC than now. If I were to prioritise them, skills development and startup support would be the foremost areas. Presently, there is a genuine need to acquire entrepreneurial and managerial skills, as well as a need to foster a mindset change. This is why support organisations, such as incubators and innovation hubs, play a vital role in providing training, mentoring, and helping to structure startups. Their assistance is crucial in enabling startups to transition from the project phase to accelerating their growth and preparing them for fundraising, which ultimately paves the way for the emergence of intermediate-sized startups and, potentially, unicorns in the DRC. The second priority is collaborating with investors to address the funding needs of startups. The expectations, access criteria, and available funding amounts are currently very high, making it challenging for the majority of entrepreneurs to secure funding easily. I advocate for the establishment of intermediate levels of funding that are better suited for testing the absorptive capacity and ensuring the successful execution of funded startups. This approach would also stimulate their continuous growth. We cannot expect to have unicorns if we haven’t had sufficient time to mentor, support, and mature projects to ensure genuine scalability. Otherwise, it would be a leap into the unknown. Government support is also crucial, as fostering national entrepreneurship is a key driver for boosting the DRC’s economic development. Although legal frameworks have been put in place, it is essential for the government to continue supporting the Congolese entrepreneurial ecosystem as defined in the enacted laws. If the promised support measures are effectively implemented, they will generate a stimulating effect, fostering more entrepreneurial initiatives and attracting greater investment. This is already evident in certain African countries like Nigeria, Ghana, and Kenya. The DRC has a significant role to play as a key player, given the potential of its market. I believe that all the necessary elements are in place to achieve this ambition. What role should the government play in assisting startups’ growth and promoting the digital sector in the country? What are the greatest opportunities for collaboration between the government, startups, and the private sector at large? As mentioned earlier, the government should act as a facilitator to ensure the realisation of the entrepreneurial ecosystem and the promised support measures within a short timeframe. The government should also strengthen its partnerships with private entities to create cohesive programs with impactful outcomes for the ecosystem. For example, collaborations like the deployment of Orange Digital Centers in all provinces through a public-private partnership between the government and Orange Group, or the Ishango Startups Center project in collaboration with the National Agency for the Development of Entrepreneurship in the Congo and the national Ministry of Entrepreneurship. Furthermore, there are numerous opportunities for collaboration in the digital and entrepreneurial sectors. It’s worth noting that the DRC’s population has surpassed 100 million, providing a substantial domestic market for Congolese entrepreneurs. All the mentioned stakeholders should work together to promote the adoption of digital technologies across various sectors, including agriculture, health, education, commerce, and energy. This collaboration would create a favourable environment for startup development and attract investment
Read MoreExclusive: Uber increases base fare in Nigeria to ₦1,200
Uber has adjusted its base fares. The ride-hailing company says the adjustment was due to the fuel subsidy removal. TechCabal can exclusively report that Uber has increased its base fares. In an official communication from Uber to its drivers seen by TechCabal, the company adjusted the minimum fare on Uber X from ₦850 to ₦1200. This price adjustment means customers will now pay N25 per minute. Part of the statement to drivers read, “We are confident that these changes will have a positive impact on your earnings opportunity, and we will continue to work on initiatives which help in making Uber the app of choice for you while maintaining an affordable service for riders.” Tope Akinwumi, Uber’s Country Manager for Nigeria told TechCabal in an email, “Following an in-depth review of the current fuel subsidy removal, Uber updated fares on the 3rd and 9th June on the app to reflect existing economic conditions. We believe these changes have helped better support drivers in increasing their earning opportunities. Furthermore, we lowered the service fee in February 2022 from 25% to 20% to help enable better-earning opportunities for drivers.” He added that the fare increases are designed to help drivers cover the recent increase in fuel costs, not the entire fuel cost. An official of the Amalgamated Union of App-based Transport Workers of Nigeria (AUATWON) confirmed the fare increment. Comrade Idris Shonuga, a national trustee of the union, told TechCabal, “Yes. We are aware. But we are still consulting because the new prices do not reflect the drivers’ demands. So we are still consulting.” A driver on Uber who spoke to TechCabal also confirmed the new fares. According to him, “The new fares are not 100% okay, but at least they have made some adjustments, so we would go out to work. The rest now is for us to regulate our cars and think about how to conserve fuel.” This move by Uber is a significant concession because base fares are a bone of contention between drivers and ride-hailing companies. Last week, drivers asked that Uber and Bolt should increase base fares by 200%. The new ask was in response to the removal of fuel subsidies in Nigeria, which led to an increase in the price of fuel from around N169 to N490 per litre. The midweek protest by the AUATWON saw the drivers ask ride-hailing companies to also reduce their commission. The same week, Uber’s rival Bolt offered drivers a daily bonus of N6,000, amongst other incentives. But the drivers who spoke to TechCabal kicked against the bonus, which had several conditions.
Read MoreTelkom profits plunge by more than 76%, company blames loadshedding
According to Telkom’s annual results, the company’s profits are down by 76.6%, and the company blames loadshedding among other factors. South Africa’s third largest mobile network operator by subscriber base, Telkom, has recorded a 76.6% dip in headline earning per share (HEPS)—from 575.3 cents to 134.6 cents—according to its annual financial results released this morning. HEPS is the main profit measure used in South African capital markets, and refers to a company’s income from operations, trading, and investments only, and excludes one-time charges, write-downs, cost-cutting. . According to the company, the significant dip in profitability is a result of a tough operating environment caused by inflationary pressures and South Africa’s lingering power issues. “Significant market changes and economic factors, including accelerated loadshedding, low economic growth and a high interest rate environment, coupled with fast-evolving technologies, have had an adverse effect on the group [‘s profitability],” the company said in a statement. According to Telkom’s Q3 results for the period ending December 2022, the company incurred over R150 million in additional costs to tackle loadshedding. Some of the loadshedding-induced costs that South African telcos have incurred include installing solar panels, batteries, and deals with independent power producers. Elsewhere on the company’s financials, revenue was up marginally by 0.9%, while EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin, which measures a company’s operating profit as a percentage of its revenue, was at 22.1%, and customer base was up by 7.8% to 18.3 million subscribers.
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👨🏿🚀TechCabal Daily – Safaricom gets $257 million
In patnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning TC Daily has a new look! Quite a number of things have changed, including the overall layout of the newsletter, language options, content tags and share buttons. The most exciting change, though, is the referral system. You asked us to incentivise sharing the newsletter and it’s here! Starting today, everyone who signs up with your unique link will bring you one step closer to winning cool gifts. You can read more about the changes here. In today’s edition Tango denies all allegations Safaricom receives $257 million from IFC E-hailing drivers strike in Nigeria TC Insights: Fraud risks in Africa’s virtual cards The World Wide Web3 Event: The Moonshot Conference Opportunities Crime Tingo denies all allegations Days after a report by US investigative firm Hindenburg Research accused it of fraud and misrepresentation, Tingo Group is denying all allegations. ICYMI: Last Tuesday, the research accused Tingo and its CEO Dozy Mmuobosi of several fraudulent activities including lying about creating Nigeria’s first payments app, falsification of a PhD degree from a Malaysian university, and photoshopping its logo for TingoPay on other POS devices. Dozy Mmuobuosi, CEO of Tingo Hindenburg also alleged that Tingo’s claim of generating $128 million in revenue in the first quarter of 2023 via its telecoms business is false. Another claim, that its agritech business Tingo DMCC was on track to deliver over $1.34 billion in 9 months, was also reported false. The company’s share prices dropped by 55% within hours of publication of the story. What’s more, Hindenburg published the report a day before Tingo was set to hold a shareholder meeting. The aftermath: Last Friday, Tingo responded, denying all allegations made by Hindenburg. The company, in one press release, refuted all the claims, calling them misleading and libellous. In a second statement, it announced that it would undergo independent research with transnational law firm White & Case LLP at the helm of its investigation. The company also noted that the Hindenburg team made no attempt to verify the claims it made, and that the report was an attempt to “damage its reputation maliciously”, at the expense of shareholders. While Tingo Group is yet to refute the claims with any hard proof, the group states that it will do so in “due course”. Moniepoint ranked 2nd fastest-growing African company Moniepoint is Africa’s second-fastest growing company, as shown in FTs latest report. We also processed 1 billion transactions worth $43 billion in Q1 alone. Read all about it here. Funding Safaricom receives $257 million for Ethiopian expansion Safaricom’s expansion into Ethiopia is getting a major boost. Last week, the International Food Court International Finance Corporation (IFC) announced that it would invest Ksh21.8 billion ($156.9 million) in Safaricom, in exchange for 7.25% of the company’s equity. IFC will also loan Safaricom a further Ksh13.9 billion ($100 million). Safaricom in Ethiopia: In May 2021, Safaricom won a bid to become the first external—and second overall—telecoms company in Ethiopia. Prior to Safaricom, state-owned telecoms Ethio Telecom had a monopoly of Ethiopia’s telecoms market, with 54 million subscribers. Image source: Peter Ndegwa/LinkedIn In 2021, Ethio Telecom sold part of a 40% stake to Safaricom for $850 million. By October 2022, Safaricom launched in the country, acquiring 2.8 million subscribers by March 2023. Seven months later, in April, it announced that it had paid another $150 million to obtain a mobile money licence in Ethiopia. With it, Safaricom will launch M-Pesa to compete with the Telebirr service presently offered by Ethio Telecom. The company’s launch of M-Pesa partly drives the IFC’s investment. Per Kenyan publication The Standard, Safaricom will use the investment to drive 4G and 5G functionality across rural and urban areas in Ethiopia. Zoom out: While Safaricom has spent a lot on its expansion into Ethiopia, it has seen significant interest in its business including a Ksh69.5 billion ($500 million) loan which has not been finalised. The company also recently bought M-Pesa Holding Company Limited (MPHCL), the company that manages all M-Pesa deposits, to Safaricom from Vodafone for $1. The acquisition also means Safaricom has €1.2 billion ($1.3 billion) in customer funds, which it could invest in short-term securities. Mobility E-hailing drivers strike in Nigeria Image source: TechCabal Ride-hailing drivers in Nigeria are bumping fists heads with their companies. What’s up? Fuel prices are! In his inaugural speech, Nigeria’s new president, Bola Ahmed Tinubu, announced the removal of fuel subsidies. Subsequently, the cost of fuel skyrocketed to over ₦600 ($1.60) per litre from ₦185 ($0.40) Days later, logistics companies announced that customers should expect a 20–50% increase in delivery prices. Bolt, for example, increased its base fare from ₦650 ($1.4) to ₦800 ($1.7). Uber increased its from ₦700. ($1.5) to ₦800 ($1.7) while LagRide instituted a 16.6% increase. It’s not enough: For the drivers, though, these price increases don’t reflect the economic realities on ground. Per the Amalgamated Union of App-Based Transport Workers of Nigeria (AUATWON), if the price of fuel has tripled, so should fares. Last week, the association asked all ride-hailing companies to institute a 200% increase with ₦2,000 ($4.3) as the new base fare, a position which corporations like Uber and Bolt, in rejecting the notion, said would reduce demand for their services and cost the drivers even more. The drivers , last week, embarked on a nationwide strike until the fares are increased. Alongside the 200% increase in base fares, the drivers also asked for Bolt to reduce its commission fees from 20% to 10%. While it looks like the corporations will not budge on the situation, Bolt, on Friday, offered its drivers an incentive—a ₦6,000 daily bonus if they complete 7–9 trips, accept 90% of orders, and work at least seven hours per day. The drivers, who are unimpressed with the offer, responded, asking Bolt to instead organise a roundtable with the drivers—or their reps—and hear their terms. This week, though, the drivers returned to work despite their needs being unmet. Experience
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TC Daily has a new look. Here’s what’s different
It’s been almost three years since we redesigned TechCabal Daily, our primary newsletter, to excite our audience by making it more readable and informative. Since December 2020, when TC Daily relaunched, we’ve grown in vision, size and quality. The newsletter now has over 150,000 subscribers—about 10x the number we had in December 2020—a more robust team, and a renewed focus on bringing Africa’s most important tech news to everyone’s inboxes by 7 am WAT every weekday. Why is it changing? Since 2020, the team—led by senior editor Timi Odueso—has added a number of new features and functionalities which were not part of the original design. We’ve added Crypto Market—which is now changing, more on this further on—to provide daily crypto updates, share buttons to help readers share the newsletter with their friends, anchor buttons, language options, and of course ads. We’ve also received some critical feedback from users, some of whom don’t like our memes—sorry guys, memes are here to stay. All-in-all, we’ve redesigned TC Daily to create a seamless experience for our readers, clients and ourselves. Or we could say we redesigned to fit “present macroeconomic conditions and realities”. What’s changing? Our growth, design and tech teams—led by Stephanie Alozie, Osaz Ehiabhi, Tuntamilore Tawak, and Dare Tunmise—have been hard at work for the past couple months. Here’s what you can expect with the new TC Daily: First, we’re changing platforms from MailerLite to Beehiiv. Beehiiv offers us a lot more flexibility and features that fit in with our overall goals. We can track our audience better with it, and run more tests. Like a wedding gown—or a nascent Kenyan startup with significant funding—TC Daily is now mostly white . We’ve reduced most of the blood-orange #F23204 colour that ran through the padding and most of the newsletter. Our overall design is minimalistic and fluid. Over the past three months, we’ve been testing out language options for our Francophone audience and it’s been a huge success with over 40% of clicks attributed to the “Read this in French” button. In the new update, we’re adding an Arabic language option for our North African readers too. So TC Daily will be offered in three languages. Share buttons are moving from the bottom of the newsletter to the very top. In the old design, we weren’t making great use of the real estate on the top of the newsletter, but we’ve now optimised the top for functionality. We received feedback from users who said they didn’t get enough prompts to share the newsletter and now, they will. Each edition—and each news blurb—will start off with a small “Share this edition” prompt. Share buttons and prompts We’ve also added [content] tags to each of the news blurbs. Every news will be identified by whichever sector it belongs to: fintech, cybercrime, global news, etc. We’re only working with content now, but we may add location tags in the future. If you haven’t noticed, “Crypto Market” has now morphed into “The World Wide Web3”. We launched Crypto Market last year, at a time when the crypto world was falling, to help our readers keep up with price trends, spikes and dips. This year though, we have a renewed focus on covering the Web3 space on the continent. We’ll achieve that with “WWW3”—no affiliation with WW1, or WW2. The segment will still cover crypto price changes—including a new 30-day change feature—but you can expect to see more Web3 content and analysis. The World Wide Web3 on TC Daily We’ve heard feedback about the anchor buttons and how users should be able to click on the news titles in the lede and get linked to the news. The good news is that this feature works for Apple and Yahoo Mail. The bad is that we haven’t found a workaround for Gmail—web and mobile—users. Google is a tough nut to crack, but we’ll get there. On Ads, we’re taking off the “partner content” tags from our ads. Ads will now have a red outline while our everyday ads will have black outlines. Ads on TC Daily Penultimately, we are adding at least two new interactive content styles in H2 2023 but we can’t leak the news yet. What we can say is that we’re looking to engage our readers and the tech community more. And one more thing : Our referral programme is back! Last year, we launched V1 of our referral programme to incentivise our readers to share the newsletter. We got hundreds of sign ups within weeks but the system had a few bugs. We’re happy to announce that we’ve squashed the bugs and now have a more functional referral programme which we’ve tested within the team, and outside of it. Most of this is thanks to Beehiiv which has an in-built referral programme that’s easily customisable (no, this is not an advert, we just really like fun, cool, no-code tools). What this means is that all of our subscribers can now refer family and friends to TC Daily and win. The premise is simple: if you love TC Daily, tell someone about it, and we’ll give you something in return*. And don’t worry, the gifts will be items you can actually use, like Showmax subscriptions or mobile money. Image source: Aderemi Adesida/TechCabal For now, only subscribers domiciled in Nigeria can redeem their rewards but we’re working to extend to readers in other African countries. (Other terms and conditions here). Unfortunately, we haven’t been able to find a unified rewards system that works cross-borders so it’s been a bit difficult to find a system that works across countries like Kenya, South Africa or Uganda where most of our users live. Netflix doesn’t offer gift cards and neither does Jumia. We are, however, still searching for options. If you have an idea of how we can make this work, please let us know at newsletter@techcabal.com. We’re super excited for everyone to try out and read TC Daily, and not just because we make money from it
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