Businesses prefer saving on fintechs than banks and other things we learned from Moniepoint’s informal economy report.
Moniepoint, a fintech giant that operates one of Nigeria’s largest agent networks, has released its first informal economy report, detailing key insights into the informal economy such as financial habits and digital payments trends. The fintech spoke to over 2 million Nigerian businesses that signed up on its platform between 2019 and 2024 and excluded data from the thousands of agents Here are five interesting things we learned from the report. Cards dominate offline payments Of the 2 million businesses Moniepoint interviewed, about 80% prefer card payments to transfers for in-person transactions. This is in contrast to online payments dominated by online transfers, according to figures from the central bank. Digital payments enjoyed its best year ever in 2023, after an ill-thought cashless policy that made cash scarce forced many Nigerians to use digital means of payment. Despite a reversal of the policy, Nigerians still stuck to digital payments and companies like Moniepoint which processed 5.2 billion transactions, quickly became part of daily life. Unsurprisingly, Lagos is Nigeria’s commercial capital Lagos has always been Nigeria’s cash cow despite being its smallest state since the country’s independence thanks to its location and it being the first capital of the country. The state houses 15% of Nigeria’s informal economy, and is only surpassed by the North Central region—the nation’s food basket and home to the current capital— and the South West, where Lagos is located. Nigerian businesses would rather borrow money from loan apps than banks When loan apps burst onto the scene, they had a compelling reason to offer credit to Nigerians as commercial banks typically did not offer loans to small businesses and individuals. According to a 2023 report, credit use in Nigeria is only 6%. While the informal economy prefers to borrow money from friends and family, loan apps came in second and have surpassed traditional banks. Nigerian businesses prefer saving on digital platforms to banks According to Moniepoint’s report, 92.4% of informal businesses save money but would rather save on digital platforms than traditional banks, showing the growing influence of fintechs in Nigeria. Cooperatives and contributions account for almost half of the saving choices of the informal economy, as they are run by members of the informal sector. For the fintechs, customers saving on their platform represent a boon to the bottom line as these deposits become the loans they give out to customers. Only 1.3% of informal businesses earn above ₦2.5m monthly profits – Moniepoint informal economy report Nigerian businesses are relatively young More than 80% of respondents said that their business was more than five years old, a worrying trend that shows most businesses are dying young. The majority of businesses have been around for less than 5 years but more than 2 years, which was followed by businesses that were more than six months old but younger than a year.
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The Boys’ Firecracker gives a lesson on speaking about your work
And tools that can help you talk about your work. 06 || July || 2024 View in Browser In partnership with Issue #69 Exemplifying Firecracker’s work ethic Share this newsletter Greetings ET people It’s been a couple of weeks since I’ve written Entering Tech alone, so today’s edition is dear to my heart in part because I’m also writing it at the cusp of my third anniversary at TechCabal (share this article if you want to celebrate me). This article started off with a four-week binge on Amazon Prime’s The Boys, and if you’re wondering why it’s taken me a whole month to watch 30 one-hour episodes, then you probably haven’t accounted for my full-time job and my near-30+ brain. It ended with a fascination for several characters, but the one I found most inspiring is what I’m writing to you about. So kick back, relax (and dry yourself off if you live in Lagos), as I tell you why everyone starting off in their career has everything to learn from The Boys’ Firecracker. P.S Next month, I may be writing about how FX’s The Bear is the capitalist’s dream plan on “endurance and growth” for employees, so be sure to read frequently. Timi Odueso The power of visibility from the not-so-powerful “I sell purpose. These people got nothing. Maybe they lost a job or a house or a kid to Oxy. Politicians don’t give a shit, mainstream media tells them to be ashamed of their skin colour, so, well, I bring ’em together, tell them a story, give them a purpose.” Firecracker, selling her market to Sister Sage. Image source: Adaeze Chukwu/TechCabal. Also, this feels like images that Firecracker herself would love. When it comes to superpowers on The Boys, there’s a brilliant and interesting array of powerups. At the extremely exciting end of things, you’ve got Kimiko’s super healing abilities (she got blown into bits and pieces and still regenerated), Soldier Boy’s nuke-capable titty flashing, and even Mindstorm’s psychic powers. On the more boring end of things, there’s Homelander with his super strength, laser eyes and flight (be original, please ), A-Train’s on-again-off-again super speed and The Not-So-Deep’s gills. Exciting or seen-before, all these supes have one thing: talent, grit and they’re bananas! Most of the powers in The Boys are. Very few, like Love Sausage’s prehensile dong, are anything of actual note. One such bland powered person is Misty Tucker Gray or Firecracker whose ability—other than being the only redhead since Famke Janssen’s portrayal of Jean Gray to be also called Gray and crazy—is a run-down bend-down select version of X-Men’s Jubilee. Firecracker makes sparks fly , literally, and not in the way that makes your stomach lurch, but a kind of spark that quickly dies when you plug your faulty laptop charger into a socket. GIF Source: Tenor. Even Firecracker isn’t proud of her abilities Firecracker’s powers are so unimpressive that Sister Sage—whose ability is being who Elon Musk thinks he is, the smartest person in the world—describes it as “lacklustre”. To us at TechCabal, Firecracker lacks a certain spark. But that didn’t stop Ms. Gray from joining the most elite Superhero team on the planet—that we know of at least. By the third episode of season four, Firecracker is made an official member of The 7 which, arguably, gives her the same spotlight Homelander, Maeve and the rest of the seven deadly sinners have had. Now, you could argue that The 7 was down bad after losing Translucent, Noir, and Maeve (allegedly ) and would take anyone at that stage, but here’s the truth which Sister Sage herself highlights: Firecracker got the role because she’s exactly what the team needed. Before The 7, Firecracker was exactly who you’d think a superhero named Firecracker would be: a right-wing extremist wielding a podcast with a few hundred listeners, peddling all the phobias that presently run conversations on X (formerly Twitter). Two weeks after joining The 7, Ms Curry gains millions of followers across social media, is hosting the evening show—the most watched slot, by the way—of the Vought News Network, and has the world’s most powerful man, Homelander, attached to her nipple. Literally. Image source: Amazon Prime. Firecracker feeding Homelander the American Dream. So how did Firecracker get her milkshake to bring all the boys to her yard? How did she go from a nobody to a sorta important somebody? Well, she talked. And talked. And talked some more till someone important heard her. *Newsletter continues after ad Attend the Mastercard Foundation EdTech Conference The Mastercard Foundation is hosting its inaugural EdTech Conference from July 8 – 10, 2024 at the Transcorp Hilton in Abuja, Nigeria. The Mastercard Foundation EdTech Conference, in partnership with the Federal Government of Nigeria, is themed ‘Education Technology for Resilient and Inclusive Learning in Africa.’Expect conversations on the current state of the EdTech ecosystem, emerging trends, the role of EdTech in solving Africa’s educational challenges and much more. Click here to find out more. Make your voice great again The lesson here from Firecracker is simple: you have to talk about your work, what you do and how you succeed or most likely fail at it. Most people are afraid of speaking about their work because they don’t want to be judged by their work. Newsflash, you already are being judged by not speaking up because it could be indicative that you’re not proud of your work. Image source: TikTok There’s not a lot Firecracker can offer The 7 in terms of raw power or strength, but her character plays a very important role in turning the people against their opposition. She might not be super strong, super fast, or super smart, but she is super loud about her successes and even manages to turn her failures around. When Homelander, for example, finds out that Starlight escaped under Firecracker’s watch, the villainess is able to talk her way out of it. We’ve had over 50 guests on Entering Tech over the past 18 or so
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In Botswana, internet cafés are playing a core part in bridging the digital divide
For 15 pulas ($1), *Kefilwe, a 25-year-old unemployed marketing graduate, can access one hour of internet at Unique Solutions, an internet café in Monarch township in Francistown, Botswana’s second-largest city. She is looking to apply for Chema-Chema, a 500 million pulas ($37 million) government funding programme for aspiring entrepreneurs. Kefilwe has a smartphone and access to mobile data packages from her mobile network operator, Orange. But the only package she can afford only provides access to Facebook, TikTok, X, and WhatsApp for 60 pulas ($4.40) a month. To access the Chema-Chema website, the internet cafe is her most economical option as she cannot afford data bundles which provide access to the rest of the internet beyond social media. In Botswana, 10GB of mobile data can cost as much as 1,400 pulas ($103). (Image source: Ephraim Modise/ TechCabal) “I don’t have that kind of money for capped data bundles. [At an internet café], I can browse freely knowing that my data usage is not capped,” she remarks. “Plus, I can beg for more minutes from the owner if I’m not done when my time elapses.” Kefilwe is one of thousands of young people in the country who still rely on internet cafés to access the World Wide Web. Although internet penetration in the southern African nation currently stands at an impressive 74%, the cost of the internet is still one of the highest in Africa, presenting internet cafés as an alternative. “We receive about 60 customers daily who use the internet for social media,job applications, school projects and other services like printing and scanning documents,” said Tshepo Kelentse, founder of Unique Solutions. Tshepo Kelentse wants to open two more internet café branches in the next three years. (Image source: Ephraim Modise/TechCabal) He started the internet café in 2021 after realising the need for internet services in the Monarch township. He has since opened another branch and plans to open two more in the next three years to keep up with the demand. Although he appreciates his business’s role in promoting internet connectivity in the country, he alludes to the fact that it is a tough business to run. “I planned this to be a self-service café, but for every client, I pretty much have to walk them through the whole process of connecting, which is a challenge when I have a lot of clients,” Kelentse said. He also points to the expenses associated with running an internet café, which include rent, internet, and maintenance of machines. He can make upwards of 1,000 pulas ($74) on a good week, but those good weeks are hard to come by, especially on school holidays as students are some of his most valuable clients. Apart from the internet, cafés offer other services including printing, emailing and PC repairs. (Image source: Ephraim Modise/ TechCabal) His café has only three computers, so to ensure that they are used as efficiently as possible, he encourages customers who use the café internet for social media browsing to connect to his internet on their phones instead. “Lots of young people come here for ‘Fezana’ (slang for Facebook) and TikTok, so I just put in the WiFi password for them and let them browse for the same rate as those using the PCs.” Expensive internet does not just affect customers of internet cafés but also the internet cafés themselves. Tshepo Monageng started his café in 2017 after identifying a gap in the market for internet services in low-income townships in Francistown. To provide internet, he has purchased an Orange router that claims to provide speeds of up to 10MBps for 550 pulas ($41) per month. Tshepo Monageng has been running his café for over five years. (Image source: Ephraim Modise/TechCabal) But he rarely gets even 5MBps of speed during the day when business is the most active. According to available data, an internet cafe needs a speed of at least 25MBps to service customers efficiently. “So when you are having lots of customers, those who came for connectivity end up leaving because of the slow internet,” Monageng told TechCabal. To compensate for the client’s loss due to unreliable connectivity, he offers other services such as CV drafting, printing, laminating, and emailing. Those auxiliary services have proven to be a hit with his customer base, as most of them are not computer literate enough to, for example, send emails. Additionally, most households do not have access to their own printing or laminating devices, making the Internet café the perfect service provider for those. In the seven years that Monageng has been in business, foot traffic to his café has been increasing despite the boom in smartphones and data packages. He alludes to the fact that most internet packages by network operators do not cater to low-income customers. Internet cafés use household-grade internet routers to service customers. (Image source: Ephraim Modise/ TechCabal) Although he is happy with the growth, he wishes to attract more enterprise and government clients, which would significantly boost his business operations. “There are lots of businesses around, but they choose to go into the town centre to get the same services we offer for a lesser price.” To promote the business and attract these prospective clients, he relies on word-of-mouth marketing, social media promotion and listing on Google Maps. Within the next five years, he would like to open more branches, acquire bigger printers and laminating machines, and expand his product offering to include other services such as branding. Other cafés have even bigger plans. Take Robert Golebetswe, for example, who plans to introduce a subscription service to entice clients to become recurring customers. He has also been running his internet café since 2017, and seeing the value of his services, he thinks a subscription service would be an essential addition. How exactly he plans to implement it is still hazy, but he dreams nonetheless. Robert Golebeletswe would like to see his internet cafe continue offering services beyond operating hours. (Image source: Ephraim Modise/ TechCabal) “Every day, I
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Move over King Cash, cards and transfers rule Nigeria’s informal economy
Cash is king. For decades, that truism has held in Nigeria, a country with a famously huge informal economy. Yet, recent trends show that customer behaviour is changing and digital payments and transfers are now just as popular as cash, according to Moniepoint’s Informal Economy Report (2024). Low trust historically drove the insistence on cash payments and NIBSS instant payment (NIP) also tapped into this trust problem. While instant payments became popular, many players in Nigeria’s informal economy resisted them for years because of a distrust for Nigerian banks which had their fair share of troubles in the 90s. There was also the fact that bank transfers sometimes took hours to confirm and could cause long wait times for the customer. However, faster transfer times are changing that. A naira redesign that led to a cash crunch in February 2023 also propelled digital payments. Per Moniepoint’s Informal Economy report, customers of informal businesses prefer to pay with cards (24%), while transfers are also popular (18%). Cash, which has historically been king, is the third preferred payment method (15.2%) for customers. For business owners, cash (53.1%) is just as popular as cards (23.1%) and cards (23.1%). However, customer preferences continue to lead the way with most businesses (80.2%) in Moniepoint’s report taking card payments for in-person transactions, while 19.8% accept bank transfers. Access to formal credit remains a challenge in Nigeria’s informal economy. Small businesses that deal with cash and often lack collateral and credit history to access interest-based loans from banks. With high lending rates and inflationary pressures, these businesses are forced to seek alternative funding options. Around 70% of businesses said they have received some credit to support their business, a large portion of which came from family and friends (70.7%). Only 15.1% borrowed from loan apps and 12.2% from traditional banks.
Read MoreAfter scrapping finance bill, Ruto slashes 2024 budget by $1.3 billion
President William Ruto has slashed Kenya’s 2024/2025 budget by KES 177 billion ($1.3 billion) weeks after protesters pushed back against a plan to raise taxes. Many Kenyans say that while the government has highlighted the importance of citizens making sacrifices, the cost of governance remains high. Today’s decision to reduce the 2024/2025 budget to KES 3.67 billion ($28.7 billion) is part of a series of compromises by the government as calls for President Ruto’s resignation continued to grow this week. “Over the last few days, our treasury team has been assessing the adverse impact of either reducing the budget by KES 346 billion in full or borrowing the KES 346 billion in full,” Ruto said in a televised address on Friday. “Cutting the entire amount, in our assessment, would significantly and drastically affect the delivery of critical government services while borrowing the whole amount in full will occasion a fiscal deficit by a margin that will have significant repercussions on many sectors, including our exchange rate and interest rates.” Ruto said the government will take loans to protect funding for several critical areas, including hiring junior secondary teachers and medical interns, funding the milk stabilisation program for farmers, and retaining the fertiliser subsidy programme. It will also settle the debt owed to coffee farmers, provide more funding for higher education, and settle arrears owed to county governments and pensions. Keen on austerity measures According to Ruto, the government will introduce austerity measures, including dissolving 47 state corporations with overlapping functions and transferring their staff to relevant ministries and state corporations. The position of chief administrative secretaries has also been suspended, and the number of government advisers will be reduced by 50%. The budgets for the office of the First Lady, the spouse of the deputy president, and the prime cabinet secretary will be removed, along with confidential budgets for various executive offices, including that of the President. Budgets for renovations will be reduced by 50%, and all public servants over 60 will retire without extension. Kenya’s Deputy President Rigathi Gachagua requested KES 2.6 billion ($20 million) to renovate his office. The Office of the President had received KES 1 billion ($7.8 million) for renovations to the State House. Over the last few years, powerful government employees have been blamed for wasting taxpayers’ money on luxury. Kenyans feel that the tax measures proposed in the 2024 Finance Bill would not have been necessary if the government and its employees had reduced corruption.
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Only 1.3% of informal businesses earn above ₦2.5m monthly profits – Moniepoint informal economy report
Nigeria is a nation of hustlers and business owners. Its army of micro, small, and medium enterprises (MSMEs) plays a crucial role. A roll call of stats: MSMEs contribute 50% to GDP, create 60 million jobs, and are the addressable market for many startups that have raised money in the past decade. Yet for such a crucial segment, there are significant data gaps. How much revenue do these MSMEs make? How much of that translates into profits? What is the likelihood that these businesses will survive past the five-year mark? How much do they pay in taxes and levies? Here are two interesting answers: Only 1.3% of small businesses earn more than ₦2.5m monthly in profits while 79% earn less than ₦250,000 monthly profits. Moniepoint informal economy report 2024 Those data points are from Moniepoint’s Informal Economy Report 2024, launched in Abuja on Friday in partnership with the Small and Medium Enterprise Development Agency (SMEDAN) and the Ministry of Trade and Investment. “By quantifying the informal economy’s impacts and nuances, we can better shape policies and programs to empower and uplift the entrepreneurs driving it forward,” said Tosin Eniolorunda, Moniepoint’s CEO. With more than 5 billion transactions processed in 2023, Moniepoint is perfectly placed to collect data and map the trends in Nigeria’s informal economy, having built its banking businesses through strong distribution to millions of Nigerians in the informal sector. The fintech spoke to over 2 million businesses that signed up on its platform between 2019 and 2024 and excluded data from the thousands of agents scattered over the country. Follow the money “By transaction value in Naira, retail & general trade alongside Food & Drinks, accounted for over half of Nigeria’s informal economy at 53.6%,” the report said. Most business owners spend almost half their income on daily family expenses (48%). Feeding takes another 20.1%, while reinvesting in the businesses is 29.7%. The businesses in this category are neighborhood shops, restaurants, supermarkets, and others that sell “daily necessities,” explaining the influx of funding into B2B startups that are solving the distribution challenges these businesses face. Nigeria’s informal economy: Young businesses led by young people Over half (58%) of informal sector workers are under 34 years of age, and the businesses they work for are equally young. Eight of ten informal businesses are less than five years old, suggesting a high failure rate. It shows a gap in tools and support that keep businesses alive. It also suggests a gap in business skills because unemployment is the top reason for most people to start a business (51.6%) while others start a business because their jobs don’t pay well (35.9%). The five-year mark is also important because it is typically at this point owners set up second businesses. Longevity is a predictive measure for business expansion, the report showed. OPay and Moniepoint issue 17 million Verve cards as Nigerian fintechs switch from Visa and Mastercard
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New ways to remove your Android phone from safe mode in 2024
Safe mode on your phone is a diagnostic tool that temporarily disables third-party applications and limits functionality. While valuable for troubleshooting, sometimes you’ll want to return to normal operations. This guide details methods to remove your Android phone from safe mode in 2024. Safe Mode activation? Safe mode activation can occur due to various reasons: Conflicting app: A recently installed or updated app might conflict with your phone’s core system, triggering safe mode. Software glitches: A temporary software glitch can also lead to safe mode activation. Hardware button combination: On some phones, accidentally pressing a specific combination of hardware buttons might initiate safe mode. Remove your phone from Safe Mode in 2024 Here are two effective methods to remove your phone from safe mode in 2024, and they’re applicable to most Android devices: Method 1: Restart your phone A simple restart is often the most effective solution for removing your phone from safe mode in 2024. Here’s how: Locate Power Button: Find the power button on your phone’s hardware. Press and Hold: Press and hold the power button for a few seconds until a menu appears. Select Restart: On the displayed menu, choose the “Restart” or “Reboot” option. Wait for Completion: Allow your phone to complete the restart process. Usually, your phone should boot up normally after restarting and exiting safe mode. Method 2: Manual Safe Mode deactivation (if applicable) Some phone manufacturers might offer a dedicated option to deactivate safe mode directly. Here’s a general approach, though specific steps might vary depending on your phone model: Swipe down notification Panel: Access the notification panel by swiping down from the top of your phone’s screen. Look for Safe Mode notification: Check for a notification indicating “Safe Mode” or a similar message. Tap to deactivate: If such a notification is present, tap on it to deactivate safe mode. If the above methods fail In rare instances, the above methods might not resolve the issue. If your phone remains stuck in safe mode in 2024, consider these additional steps: Identify conflicting apps If you suspect a recently installed app is causing the problem, try uninstalling it and restarting your phone. Seek manufacturer support: For further troubleshooting guidance specific to your device model, consult your phone’s user manual or contact the manufacturer’s support for further troubleshooting guidance specific to your device model. Final thoughts on how to remove Android safe mode Following these steps, you should be able to remove your phone from safe mode in 2024 and regain full functionality. Remember, a simple restart often solves the issue. If the problem persists, identify potential app conflicts or seek assistance from your phone’s manufacturer.
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Eight most expensive Android phones in 2024 (Luxury Edition)
The Android market thrives on diversity, catering to users with various needs. But for those who prioritise extravagance and premium materials, the top tier offers a unique experience. Here, we delve into 8 of the most expensive Android phones in 2024, highlighting their luxurious features and technical prowess. 1. Lamborghini One ($3,999) For those who crave the spirit of Lamborghini on their mobile device, the Lamborghini One delivers. This phone boasts a sleek design inspired by Lamborghini cars, featuring premium materials and powerful specs. It embodies the thrill and luxury associated with the Lamborghini brand in a mobile package. 2. Asus ROG Phone 8 Pro Luxury Edition ($3,999) For mobile gamers who demand the best, the Asus ROG Phone 8 Pro Luxury Edition offers top-tier specs wrapped in a premium package. This phone isn’t just about the most expensive Android phones in 2024 list; it caters to serious gamers with upgraded materials, exclusive design elements, and the same powerhouse performance that defines the ROG Phone series. 3. Caviar Google Pixel 8 Pro Solid Gold ($4,490) Caviar isn’t afraid to transform popular phones. The Caviar Google Pixel 8 Pro Solid Gold showcases the Pixel’s exceptional camera capabilities housed in a body crafted from solid gold. This phone is a perfect example of how the most expensive Android phones in 2024 can elevate everyday technology into a statement piece for photography enthusiasts with a taste for luxury. 4. Motorola Razr Plus Luxury Edition ($4,499) The iconic Razr gets a luxurious makeover in the Motorola Razr Plus Luxury Edition. While retaining the foldable form factor and advanced features of the standard Razr Plus, this phone features premium materials for a more refined aesthetic. It’s a synergy of nostalgia and opulence in the realm of the most expensive Android phones in 2024. 5. Goldgenie OnePlus Open 24K Gold ($4,895) Goldgenie takes the sleek OnePlus Open and embroiders it with a dazzling status symbol. This 24K gold-plated version retains the phone’s impressive performance while boasting a head-turning, luxurious aesthetic. It’s a testament to how even the most expensive Android phones in 2024 can combine high-tech features with lavish design. 6. Caviar Galaxy S24 Ultra Solid Gold ($4,990) Luxury further takes centre stage with the Caviar Galaxy S24 Ultra Solid Gold. This phone transforms the already powerful Galaxy S24 Ultra into a symbol of wealth. Crafted from solid gold, it retains the phone’s cutting-edge features, like the 200MP camera and Snapdragon 8 Gen 3 processor, making it a powerful statement piece. 7. Tonino Lamborghini Alpha-One ($4,995) Another collaboration with the iconic Lamborghini brand, the Tonino Lamborghini Alpha-One offers a luxurious take on an Android phone. This phone features a bold design inspired by Lamborghini’s design language, high-end materials, and powerful hardware. It’s a prime example of how even the most expensive Android phones in 2024 can leverage brand recognition to create a unique mobile experience. 8. Vertu Asterisque S for Bentley ($9,000) Vertu and Bentley collaborated to create the Asterisque S for Bentley, a phone that embodies automotive luxury. This phone pushes the boundaries of what the most expensive Android phones in 2024 can represent. Expect top-tier materials, a distinctive design inspired by Bentley cars, and top-of-the-line performance. Final thoughts on 8 most expensive Android phones in 2024 These eight phones showcase the exciting intersection between cutting-edge Android technology and regal design. From solid gold craftsmanship to intricate engravings and collaborations with fashion houses, these devices cater to those who seek the ultimate mobile experience in a luxurious package.
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👨🏿🚀TechCabal Daily – From telecoms to techco
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية TGIF If you’re looking for a sharp weekend watch, we’ve got you covered. While you wait to be broken by the latest episode of HBO’s House of the Dragon, take a couple of minutes and find out how we at TechCabal created one of Africa’s most ambitious tech conferences Moonshot. Our CEO Tomiwa Aladekomo—who is being held hostage by our Growth team until the video reaches 100,000 views—shares his inspiration for leading the creation of Moonshot, and what everyone can expect in the second edition holding later this year. The stakes are high! Watch the full documentary and see how Moonshot is changing Africa. In today’s edition Inside MTN’s move from telecoms to tech Nigeria says crypto companies must have offices in the country Nigeria to launch research centres for emerging tech Twitter rival, Koo, shuts down Funding tracker The World Wide Web3 Job openings Companies Inside MTN’s move from telecoms to tech Rebrands are not always met with open arms, especially when they set out to change the aesthetics users are used to. One such is MTN. In 2022, the 30-year-old telecom which is active in 21 African markets changed its logo from the bright white, yellow and red-lettered logo users had grown up looking at, to a black-and-yellow combo (no affiliation to the popular Wiz Khalifa song). Many thought very lowly of this new minimalistic approach. “This new MTN logo is too drab. Haba!!” one user exclaimed. Another hilariously noted, “MTN’s new logo looks like they’re trying to save money and stop colored [sic] printing.” In the same move, it changed its tagline from “Everywhere you go,” to “Yello”—which is probably a good move given how many times we at TC Daily have shaded the ISP for its downtimes and being everywhere but where you go. Now back to the rebrand, it may have just seemed like a makeover for users, but MTN explained it holistically as a marker for its move from telecoms to tech. Here’s what Nompilo Morafo, MTN Group chief sustainability and corporate affairs officer, said at the time, “The new look is aligned to our evolution from a telecommunications company to a technology company underpinned by one simple and consistent yet striking brand.” It’s been two years since Morafo made that statement and quite a bit has changed in how MTN runs its business. The company, for one, has turned its focus from just telecoms services to some of its other verticals like its mobile money unit, MoMo which is worth a whopping $5 billion, its WhatsApp-rival platform Ayoba, and Bayobab, a fibre-cable-facing unit. It’s also introduced Chenosis, a big data analysis vertical that will supposedly help it develop new products its users like. Want to know how it’s going for MTN? Our Senior Reporter Frank Eleanya has the inside gist on MTN’s race to become a “techCo”. Process payments smoothly with Moniepoint And we’ll have processed almost 5,000 more by the time you’re done reading this. Your business payments can be one of them. Click here to sign up. Crypto SEC says crypto companies must have offices in Nigeria Shā Zhū Pán, a Chinese phrase for “pig butchering scam,” in which victims are tricked into investing cryptocurrency in fraudulent schemes, was first reported in 2020. Today, these types of crypto scams are a dime a dozen and have gone global. In 2023, for example, Eze Harrison Arinze faked his identity and offered to help members of his Telegram community with crypto trades. He allegedly defrauded them of $592,000. In Nigeria, regulators and lawmakers believe crypto regulation should be tighter. This year alone, Nigeria’s Securities and Exchange Commission (SEC) has taken steps to regulate digital assets. First, it hiked registration fees for virtual asset service providers (VASP) to ₦150,000,000 ($98,000) to weed out bad players. Then, it introduced a 30-day Accelerated Regulatory Incubation Program (ARIP) for crypto companies to register for a VASP licence at an additional ₦2,000,000 ($1,300) fees and get approved in principle. Now, the SEC is insisting that all VASPs must establish offices in Nigeria, and its CEOs or managing partners—who must be active in investments and securities—must also be resident in the country as part of their eligibility requirement under ARIP. The play here: SEC wants to monitor crypto companies and their users. The organisation will cooperate with VASPs to access records of financials and monthly trading statistics of users. SEC’s mandate for CEOs to reside in Nigeria reflects its push for accountability, especially after Patricia’s incident where absent local offices hindered founder liability. This aligns with the government’s efforts to control forex trades affecting the naira’s value. Worth SEC’s troubles: ARIP participants who refuse to comply with this directive will be fined at least ₦5,000,000 ($3,276) for the first violation and ₦200,000 ($131) for penalties thereafter. Established players operating without SEC’s approval risk paying ₦20,000,000 ($13,104) in hefty fines. Policy Nigeria to launch research centres for emerging tech It is commonplace in Nigeria for government agencies to establish frameworks and policies without following through with proper implementation. Last year, for example, the Federal Ministry of Communications and Digital Economy (FMCDE) announced the approval of a national blockchain policy. The policy signalled an open embrace from the government of blockchain-related innovation in the country. One year later, and there’s no clear path to implementation for the policy. And now, the National Information Technology Development Agency (NITDA) has announced plans to establish research centres for “emerging technologies” across Nigeria’s six geopolitical zones. The research centres will focus on the Internet of Things (IoT), blockchain technology, unmanned aerial vehicles (UAVs), additive manufacturing, AI, and robotics. The plan mirrors tech minister Bosun Tijani’s gathering of 120 AI researchers and stakeholders to develop the country’s AI framework. While AI—or maybe crypto— seems to be the new poster child of emerging tech in Nigeria, given the launch of Nigeria’s new large language model in April this year, there are still concerns about
Read MoreInside MTN’s race to become a “techCo”
After years of multi-billion fines, regulatory uncertainties, and economic volatility MTN is embarking on a new adventure outside of its core business: – telecommunications. “We are moving from a telecom company to a techCo (technology company)’” Joshua Henry, head of business development, for Chenosis a big data company by MTN, told TechCabal. That sentence has become a song every executive in MTN knows by heart. It has also spurred the company’s increasing focus on the growth of its existing verticals such as MoMo, a fintech unit valued at over $5 billion; Ayoba, a chat platform like WhatsApp that will soon be turned into a super app; and Baobab, a fibre-cable-facing unit. The transition is inevitable for the company whose growth in the telecom industry in Nigeria, its largest market on the continent by subscriber count, seems to have reached a stage where it is no longer growing at a fast pace and is starting to decline. The company’s subscriber base has struggled with growth since it reached a peak of 92.7 million subscribers in February 2023. The latest report by the Nigerian Communications Commission (NCC) shows that the telco’s subscriber count dropped to 81.7 million in March 2024. MTN’s revenue has also been pummelled by financial headwinds in Nigeria where 28-year-high inflation has subscribers making unplanned survival choices while the cost of business operations hit an all-time high. Several startups have closed shop and many foreign nationals have packed up and left the country. However, the burden of making MTN’s ambition to become a tech company a reality mostly rests on Chenosis, a startup MTN launched in Nigeria in September 2023 as a marketplace where developers within the continent can build technology solutions and infrastructures, and APIs without spending dollars on foreign alternatives. Beyond the marketplace, the primary responsibility of Chenosis is to harness the massive data MTN has accumulated over 25 years of doing telecom business in Africa and build innovations by analysing the data. MTN houses the data points of about 300 million active subscribers across the African continent which includes 80 million active users in Nigeria who make calls, send SMS, browse, do airtime, and MoMo transactions. Chenosis studies the data points to identify behavioural patterns which could spur a new company or new line of products from the MTN family. “Chenosis was born out of the strategy to build the largest data platform within the continent,” Joshua Henry said. Although it is less than one year in the market, Chenosis has key products like APIs, the low-code and no-code platforms that allow companies to design and develop apps using intuitive drag-and-drop tools that reduce or eliminate the need for traditional developers who write codes. There are two categories of APIs on Chenosis including MTN’s API and third-party APIs which allows companies to integrate their API with MTN’s open API. MultiChoice, a satellite television service provider, has a third-party API on the platform. There is also a partnership with Impression AI where Chenosis grants the customers of the AI company approval to open bank accounts using USSD codes. While Chenosis is not thinking of building a generative AI tool with the trove of data at its disposal, according to Henry, there are many other activities it is using the big data MTN has to do. One of them is credit scoring for the financially excluded. How it does this is to study their spending pattern, especially with airtime, since most of them use feature phones. “MTN can capture certain things about the customer like where they live, how much airtime they purchase, we know whether people bought airtime for the customer or the customer is the one doing the buying, with that data we can say for sure what her credit score would look like,” he said. Karl Toriola, the company’s CEO in Nigeria, is the champion of the techCo transition and is pulling all the stops to ensure that the vision is achieved. During an interview with Tomiwa Aladekumo, CEO of TechCabal on Arise TV in February, Toriola explained that to transform the company from a telco to a technology or digital company takes “a total transformation in DNA.”. “It is a huge transformation in terms of the personality of MTN. When a company is large and successful, the primary focus for shareholders and people who govern those businesses is protecting that revenue base. At times you transform yourself so radically you almost have to destroy your old identity and recreate a new one,” Toriola said. While Chenosis is up its neck in data, MTN also has another unit called the MTN Group Tech, which is specifically focused on exploring opportunities in artificial intelligence. The companies that will be born from the transition will be funded by MTN. Nevertheless, MTN acknowledges that external funding is required if the transition project is to scale. Currently, MTN’s telecom business doesn’t make enough money to support its ambitious growth plans. “It is one step at a time,” Henry said, indicating the company would address the issue of additional funding when it gets there.
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