MTN Nigeria reports ₦137 billion loss in FY 2023 as Naira devaluation shrinks margins
MTN Nigeria reported a loss for the full year 2023, its first in three years, after a Naira devaluation and rising cost of doing business ate into its margins. The telco reported a loss after tax of ₦137.0 billion in 2023 compared to profits of ₦348.7 billion in 2022. According to a full-year 2023 report released this morning, payment of tower lease cost—indexed to the US dollar but invoiced and paid in naira—comprised most of its foreign currency exposure in operating expenses. “In June 2023, the Central Bank of Nigeria (CBN) adopted a more liberal foreign exchange management system,” said Karl Toriola, MTN Nigeria’s CEO. “The cost of doing business in Nigeria, and for MTN Nigeria in particular, significantly increased the costs in relation to our tower leases.” Key takeaways MTN has 79.7 million mobile subscribers in FY 2023 Active mobile money (MoMo PSB) wallets increased by 163% to 5.3 million FinTech revenue grew by 2.4% MTN Nigeria operates in a high inflationary environment, further worsened by a currency crisis and rising energy costs. Nevertheless, MTN will expand its non-core services, such as Cloud, Unified Communications, and IoT applications, to capture future opportunities. This in addition to its growing 4G and 5G businesses. “We are actively engaging the regulators to resolve the USSD dispute with banks,” a statement from its financials read. Mobile services The telco’s financial statement also reported that its services revenue grew by 22.4%, driven primarily by data revenue growth of 39.8%. Voice revenue was up by 9.7%. The telco’s mobile subscribers increased by 5.3% to 79.7 million, underpinned by increased gross connections and churn management initiatives. Active data users grew by 12.7% to 44.6 million. Active mobile money (MoMo PSB) wallets increased by 163% to 5.3 million, powered by 326,000 MoMo agents, and 324,000 merchants in its ecosystem. TechCabal had recently reported that the MoMo service still requires more adoption. However, it announced a partnership with Mastercard yesterday to deepen that aspect. Nonetheless, its digital revenue arm saw a 69.9% increase to ₦37 billion, while its fintech revenue grew by 2.4%.
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👨🏿🚀TechCabal Daily – Spleet lays off staff
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy new month Get ready to mark your calendars for the biggest female-only party in Nigeria: HERtitude2024, hosted by our sister publication Zikoko! It’s happening on April 20, 2024, and it’s the perfect chance for women to celebrate and connect. Ladies, you do not want to miss out on the fun! Before you sign out for the week, grab your tickets now for the amazing women in your life. In today’s edition Nigerian telecoms to disconnect 12 million subscribers Spleet lays off staff Nigeria gears up for Abuja Tech City MoMo Virtual Cards are coming Funding tracker The World Wide Web3 Events Telecoms Nigeria orders blockage of unlinked SIMs In December 2020, Nigeria’s former minister of communications and digital economy Isa Pantami announced an integration policy to link SIM cards to the country’s National Identity Network NIN database. The goal was simple: to ensure the NIN was a robust identification system for its citizens. Think of it as the equivalent of a social security number in the US. The government also hoped that the move would make it easy to track offenders of phone-related crime cases like kidnapping and banditry. The move was however widely criticised by the citizens due to the inconvenience of linking their SIMs with the NIN and the almost impossible deadline of December 15, 2020, at which time telecoms would have to block all SIMs that were not registered with valid NINs. The government has however postponed this deadline multiple times. And now, it appears the government is ready to take action. Time’s up: Yesterday, the Nigerian Communication Commission directed all telecoms to block subscribers not yet linked to NIN. MTN, AIrtel and Glo are set to block about 12 million subscribers who are yet to comply with the Nigerian government directive. The NCC said it “was committed to protecting consumers’ rights while ensuring their satisfaction.” The NCC has made this promise before. In May 2023, the regulator directed all licensed mobile network operators (MNO) to use unified shortcodes—*310#—so users with multiple SIMs don’t need to have a headache memorising multiple short codes. It remains to be seen if the NCC—out of its sheer love for users—will approve yet another deadline for the NIN SIM linkage. Access payments with Moniepoint You don’t have to take our word for it. Give it a shot like he did Click here to experience fast and reliable personal banking with Moniepoint. Lay offs Spleet to layoff staff Nigeria’s headline inflation rose to a near three-decade high of 29.92% in January. The inflation coupled with Nigeria’s depreciating currency has fastened its fangs on the purchasing muscles of its people of which 133 million are multidimensionally poor. Businesses and tech startups also bear the brunt, recording increases in operating costs and reduced profits. For property tech startup Spleet which allows monthly rental on its leased properties instead of a yearly rental charge, the inflation and devaluation are driving rental prices up by 2x. To cope with these new price changes, the proptech startup, on Thursday, said it was reducing operating costs and laying off some members of its workforce. Dig deeper here. Innovation Nigeria signs MoU to build Abuja Tech City By the close of 2022, the tech ecosystem in Lagos, Nigeria, had reached a valuation of $8.4 billion. Yaba, a suburb within Lagos, emerged as a prime location for numerous companies, including the pioneering startup incubator, CcHUB. Founded in 2010 by Bosun Tijani—now the minister of communications, innovation and digital economy—and his colleagues, CcHUB played a pivotal role in Yaba’s development. It gained momentum and collaborated with the government to install fibre optic cables in Yaba, which has now played a crucial role in creating what is arguably Africa’s most organic tech cluster, with CcHUB becoming Lagos’ leading tech innovation centre. Abuja gears up for tech city: In more technological advancements, Nigeria’s federal government has signed a Memorandum of Understanding with Domineum/Edenbase UK to develop a state-of-the-art tech hub—Abuja Tech City— in the capital city of Nigeria. The project seeks to replicate the success of London Tech City, valued at over £61 billion ($77 billion) in its fifth year of operation. Notably, the same consortium responsible for developing London Tech City will be behind the construction of Abuja Tech City. The Abuja Tech City project, originally conceived as Abuja Tech Village during the tenure of former President Olusegun Obasanjo, has received renewed attention under the current administration. A standout feature of the Abuja Tech City is its designation as a Free Trade Zone, offering a conducive environment for tech-driven startups, industries, and innovation initiatives, with a vision for a smart and green city. Clearing the Path for Progress: To pave the way for development, the government has directed illegal occupants to vacate the Pyakassa area of Abuja, where the Tech City will be built. The indigenous community had already received compensation in 2015, making the current step essential for taking full possession of the land and starting construction. Zoom out: Other regions are catching up. Kaduna, in the north, which boasts of CoLab, the city’s first tech hub, has also partnered with the state government to establish Kaduna Technology City. Secure payment gateway for your business Fincra’s payment gateway enables you to easily collect Naira payments as a business; you can collect payments in minutes through bank transfers, cards, virtual accounts and mobile money. Create a free account and start collecting NGN payments with Fincra. Fintech Mastercard partners with MTN to launch MoMo Virtual cards Millions of Africans will enjoy greater access to digital payments thanks to a multi-market partnership between MTN Group, Africa’s largest mobile network operator, and Mastercard, a global payment processing company. The deal will introduce a prepaid virtual card specifically designed for MTN’s MoMo customers, enabling them to access over 100 million acceptance points globally. This initiative will impact MoMo’s active monthly wallets, totalling 60 million across its expansive presence in 13 African
Read MoreNigerian property startup Spleet lays off employees as inflation squeezes business
Spleet, a property tech startup that raised $2.6 million in 2022 from investors like MaC ventures and HoaQ Fund, will lay off an undisclosed number of employees as inflation and price increases from landlords it works with put the business under pressure. With 32 full-time employees, the layoffs will affect all employees not in core operations, one person familiar with Spleet’s business said. The company pushed back against this claim but declined to share specifics. “I cannot comment on the number of people that will be affected; we’re still in the middle of the process,” said Adetola Adesanmi, the company’s CEO. Founded in 2017, Spleet allows Nigerians to rent properties and pay monthly instead of the typical yearly rental charged in many parts of Lagos. The argument for property tech startups like Spleet is that monthly rental arrangements allow people to plan around their finances better. The asset-light model revolves around properties the company leases. “We’re letting go of some team members because when prices went up, landlords began renewing at 0.8 to 2.2x last year’s rent,” said Adesanmi. “Many of our tenants can’t afford that, and the best way to continue as a business is to lay off people.” The company told employees about the layoffs at an all-hands meeting on Tuesday, two people present at those discussions said. “There will be difficult decisions because of the present macroeconomic conditions,” one person at the meeting recalls the CEO saying. Another person also said the company’s revenues were under pressure last month, citing significant revenue dropoffs that TechCabal could not immediately confirm. In Nigeria, soaring inflation and massive currency devaluation is pushing property owners who partner with Spleet to demand more value for their property. Some of these properties are in prime areas of Lagos and already come at a steep cost relative to the city’s average monthly income. The property tech sector in Nigeria enjoyed attention and funding from 2018, with players like Fibre, Spleet and Muster pioneering a pay-per-month model they claimed would revolutionise Nigeria’s housing market and solve a worrying housing deficit. Yet, Nigeria’s real estate market has resisted disruption, with some of those startups eventually closing their doors. The website of Fibre, the pioneer startup that sent termination notices to tenants in 2021, is no longer reachable. “We still have a business,” Adesanmi said, refuting any insinuation that the company may be winding down. *This is a developing story
Read MoreAfrica’s mobility startups: Electric and global ambitions fuel funding surge
This article was contributed to TechCabal by Conrad Onyango via bird story agency. In 2021, Nigerian mobility startup Metro Africa Xpress (MAX) became Africa’s most-funded startup in the electric vehicle (EV) space after netting a $31 million round to expand into Ghana and Egypt. In 2023, Nigerian mobility startup Moove more than doubled that, netting $76 million in funding for its global expansion. Now, Uber is reportedly looking to back Moove with an additional US$100 million in a funding round that could take Moove’s total funding since it was founded, to US$335 million. According to a Bloomberg report, that would boost Moove’s valuation from US$650 million to $750 million and take it closer to becoming a mobility unicorn (a startup with a value of over $1 billion). So far in 2024, a $24 million in funding clinched by Kenya-based electric mobility standout Roam is the largest funding round in the sector. The funding is a blend of $14 million in equity and $10 million in debt, from the prestigious US government’s Development Finance Corporation (DFC). Roam said it will leverage the new funding to expand its production of locally designed and manufactured electric motorcycles and buses. “As Africa embraces the move toward electric vehicle technology, we are proud of our impact on the environment and livelihoods across Kenya and the wider continent. This funding is a critical step for Roam to achieve our strategic objectives in scaling up and increasing utility to our customers,” said Roam’s Chief Finance Officer, Rajal Upadhyaya. While some of Africa’s mobility startups are planning to bolster their offerings to include electric vehicle production, fleet purchase and financing, others are setting their sights on regional and overseas expansion to tap into a multi-billion dollar market being driven by rising demand for cheap, low-emissions transport. A recent raise of $10 million in new debt by Nigeria’s Moove was to fuel its overseas expansion in India, the mobility company said. The vehicle financing startup said the funding would strengthen its India presence by allowing it to expand operations to three additional Indian cities – Delhi, Pune, and Kolkata. The startup entered the Indian market in 2023, following a strategic partnership with Uber that targets the introduction of 25,000 electric vehicles in the Indian market. The company currently operates in Bengaluru, Mumbai, and Hyderabad in India and boasts a presence across nine markets in Africa, Europe, Asia, and the Middle East. Another Nigeria-based mobility operator, Shekel Mobility, recently announced securing $7 million in funding to propel its growth and expansion plans. Shekel is a B2B auto dealers’ marketplace that enables users to find, finance, and sell cars. The startup has an ambitious transaction goal of $10 billion annually, by 2025. Over its 20 months of operations, the startup said it has facilitated more than $56 million in auto dealer transactions and supported over 1,400 dealers. “We have positioned ourselves as a transformative force in the African automotive market. This infusion of $7 million in fresh funding is poised to enhance our financial services, expand into new markets, and sustain our impressive growth trajectory,” Shekel said in a statement. With Francophone Africa continuing to attract foreign startup investments, Senegalese startup, Mbay Mobility has also thrown its 10-year rollout plan into the mix. The startup, which began piloting electric vehicles in 2022, announced in January it was actively seeking funding to purchase a fleet of 33,000 electric taxis for rollout in Accra, Dakar, and Abidjan. The startup has yet to disclose its funding target. Earlier this year, Oliver Wyman, a global management firm, in a report titled ‘Shared Mobility’s Global Impact’ projected Africa’s shared mobility market size would grow from $4.2 billion in 2023 to $7.8 billion by 2030. Growth in the market will come from ride-hailing, e-bike and scooter rentals and car-sharing, driven by Africa’s fast-growing urban population on a continent with the world’s largest population under the age of 30.
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Latest MTN MoMo Uganda withdrawal charges 2024
Mobile Money (MoMo) in Uganda provides a convenient and accessible means for individuals to send, receive, and manage money using their mobile phones. Among the various services offered by MoMo, withdrawal charges play a crucial role in determining the cost associated with accessing cash from one’s account. In this article, we delve into the withdrawal charges applicable to MTN MoMo users in Uganda, providing a clear understanding of the tariffs involved across different transaction amounts. Overview of MTN withdrawal charges Uganda MTN MoMo Uganda imposes withdrawal charges based on several factors, including the amount being withdrawn, the destination of the funds (such as other networks or bank accounts), and the method of withdrawal (agent or ATM). These charges are structured to ensure transparency and facilitate seamless financial transactions for users. Let’s break down the withdrawal charges according to the specified parameters: 1. Amount (UGX) This column represents the range of transaction amounts for which withdrawal charges apply. 2. Withdrawal charges for sending To MTN or Other Networks (UGX) Indicates the charges for sending money to MTN or other networks. 3. Sending To the Bank (UGX) Specifies the charges for sending money to a bank account. 4. Agent Withdraw (UGX) Denotes the withdrawal charges associated with withdrawing funds from an authorized MTN MoMo agent in Uganda. 5. ATM Withdraw (UGX) Represents the charges for withdrawing money from an ATM. 6. Senkyu Points Refers to the loyalty points earned through transactions. 7. Withdraw Tax (min) (UGX) / Withdraw Tax (max) (UGX) Specifies the minimum and maximum withdrawal tax applicable. 8. Payments To Various Services Indicates the charges for payments to specific service providers, including Azam TV, Ready Pay, school fees, Solar Now, UMEME, NWSC, DStv, StarTimes, NSSF, and Multiplex. 9. Voucher/Unregistered User Specifies the charges for transactions involving vouchers or unregistered users. Key highlights alongside MTN MoMo withdrawal charges in Uganda Taxes are automatically deducted from the user’s account during withdrawal transactions, ensuring compliance with regulatory requirements. Users enjoy free access to their MoMo accounts while roaming, as well as access to account statements via the MoMo App. Account limits include a minimum transaction amount of UGX 500, a maximum transaction limit of UGX 5,000,000, and a maximum account balance of UGX 20,000,000. Several services such as changing MoMo PIN, checking account balance, accessing mini statements, registering for MoMo on SIM, depositing MoMo, and purchasing airtime or bundles incur no additional charges. Users are advised against paying any agents for transactions, as fees are automatically deducted from their MoMo accounts. Final thoughts on MTN MoMo Uganda withdrawal charges 2024 Understanding MTN Uganda withdrawal charges is essential for users to make informed decisions regarding their financial transactions. By comprehensively examining the tariffs associated with different transaction amounts and destinations, users can optimize their use of MoMo services while minimising costs.
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👨🏿🚀TechCabal Daily – Canal has no Choice
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy pre-Friday And our condolences to MTN users in Nigeria—including this writer—who, yesterday, found that the network was never where we go. The telecom, which holds the majority market share—about 38.7%—experienced an outage which left some of its 76.7 million subscribers unable to connect to the internet or make calls for over four hours. The telecom says the outage was due to damages to its fibre optic cables which it is “working hard to resolve”. For now, it seems that the service is slowly being restored to users whose not-so-patient bones are yellowing with distrust. In today’s edition Binance executives arrested in Nigeria Canal+ to make offer for MultiChoice Maliyo Games launches Disney’s first African game Bolt launches in Botswana The World Wide Web3 Opportunities Crypto Two Binance executives arrested in Nigeria Nigeria’s crypto industry is facing a significant regulatory upheaval. Last week, Binance, the world’s largest cryptocurrency exchange, restricted the sale of USDT—a stablecoin pegged to the US dollar—and imposed a fixed buying price of ₦1,802 ($1.12), reportedly under directives from the Central Bank of Nigeria (CBN) and other governmental entities, amidst a depreciation of the naira. Yesterday, the most recent development revealed the arrest of two Binance executives in Nigeria this week. Why? According to Premium Times, the executives flew to Nigeria after their website was blocked to negotiate with the government. Although their identities remain undisclosed, one is reportedly American and the other British-Pakistani. Talks with Nigerian authorities hit a deadlock as the executives refused to meet certain demands. What demands? The Nigerian authorities reportedly requested transaction data involving the Nigerian Naira on the Binance platform in the last seven years and also the removal of specific Nigerian-related data from the platform. However, the Binance executives insisted they would only comply after they were escorted to their respective countries’ embassies. Following their refusal, the government reportedly obtained a court warrant to detain the officials for at least 12 days, and the EFCC took over the investigation while they were held at a guest house near the office of the National Security Adviser. Central Bank continues to tighten grip: Adding to the anxiety, on Tuesday, during a monetary committee meeting, Yemi Cardoso, Nigeria’s CBN governor, disclosed that “illicit flows” totaling $26 billion had traversed through Binance Nigeria from unknown sources and users. The governor also hinted at stricter regulations and upcoming actions from security agencies. In response to recent regulatory scrutinies, some crypto exchanges have suspended USDT and USDC stablecoins purchases. Regulators also blocked access to the websites of exchanges like Coinbase, Quidax, and Binance. These restrictions are coming at the wrong time as cryptocurrencies—which several Nigerians have used to fight inflation—are resurging with bitcoin at a three year high at $62,000. Access payments with Moniepoint You don’t have to take our word for it. Give it a shot like he did Click here to experience fast and reliable personal banking with Moniepoint. Streaming Canal+ gets greenlight to make offer to MultiChoice shareholders On February 6 2024, MultiChoice, Africa’s leading pay-TV company, turned down a bid from its biggest shareholder, Canal+, to acquire the remaining shares it didn’t already own. Canal+ offered R105 ($5.65) per share, but MultiChoice deemed this price too low and rejected the offer. At the time, Canal+ had 32.6% of MultiChoice’s shares. Now, the French broadcasting company has increased its ownership stake in MultiChoice to 35%, triggering a mandatory offer requirement under South African regulations. The news: The South African Takeover Regulation Panel (TRP) has ruled that according to the Companies Act of 2008 and JSE Listings Requirements, Canal+ must make a formal offer to buy shares of MultiChoice that it does not already own. The TRP also ruled that MultiChoice’s public disclosure of Canal+’s initial offer was unlawful but MultiChoice plans to appeal this decision. What does this mean for Multichoice? The takeover panel ruling could lead to a bidding war which Canal+ is likely to win, as its parent company, Vivendi, isn’t new to takeover battles. In October 2015, Vivendi acquired minority stakes in gaming firms Gameloft (6.2%) and Ubisoft (6.6%), eventually increasing ownership to 10% in both. Vivendi then executeda hostile takeover of Gameloft, obtaining over 30% before persuading other shareholders to sell. By June 2016, Gameloft had become a Vivendi subsidiary. If history is any pointer, Canal+’s moves could lead to a takeover of MultiChoice. The company has increased its focus on Africa in the past decade and has grown from 1 million African subscribers in 2016 to 7.6 million in 2023. Gaming Maliyo Games and Disney launch Rising Chef Yesterday, Disney’s first animated series set in Nigeria, Iwaju, premiered on the Disney+ streaming channel. Set against the vibrant backdrop of Lagos, Nigeria’s economic capital, the series tells the story of Simisola Gbadamosi, a young girl on the cusp of adulthood. Iwaju paints a futuristic picture of Lagos, imagining the usually trafficked roads and crowded markets with flying cars and other future tech stuff. Economics of scale: While Iwaju is not Disney’s first foray into African storytelling, accessibility concerns remain. Last year, it released Kizazi Moto, an animated sci-fi anthology that didnt gain much traction on the continent because people couldnt watch it. Currently, the Disney+ app is only available in South Africa. This limited reach raises concerns about the accessibility of these African stories for the very audience they represent. It’s also investing in gaming: In more news about Disney in Africa, Maliyo Games, a leading African game developer, yesterday, announced a partnership with Disney Games for the launch of its new mobile game, Rising Chef. Think of it as the African version of Cooking Fever, the fast-paced cooking simulation set in Nigeria’s local “Mama Put” and “Bukka” restaurants with players serving up hot plates of national Amala and Jollof Rice. The game also features characters from the Iwájú series as patrons. The game was reportedly developed by Maliyo’s team of developers who were trained
Read MoreMTN Nigeria blames hours-long outage on fibre cuts
A major service outage on Wednesday left millions of MTN Nigeria customers unable to make calls or connect to the internet. The outage, which lasted four hours, was caused by multiple fiber cuts, the company said in a statement. The telecom operator noted that the challenge was noticed in the afternoon and affected mostly subscribers in Lagos. Breaking: Binance and other crypto platforms suspend USDT, USDC purchases after CBN scrutiny “Our engineers are working hard to resolve with services gradually being restored in some areas,” Funso Aina, senior manager, External Relations, MTN Nigeria, told TechCabal. “A fiber optic cable cut refers to a complete or partial severing of the thin glass fibers that make up a fiber optic cable,” says one publication. “These cables transmit data over long distances using light pulses.” A major cause of fibre cuts in cities like Lagos is road construction and vandalism Fibre cuts are a constant headache for operators in the telecom industry. The industry spent ₦14 billion to fix around 59,000 fibre cuts between 2022 and 2023, data from the Nigerian Communications Commission (NCC) show.
Read MoreTwo Binance executives arrested in Nigeria following website ban
After multiple unconfirmed reports, the Financial Times has confirmed the arrest of two Binance executives in Nigeria this week. Both executives flew to Nigeria last week following a ban on their website and were arrested by the office of the National Security Adviser (NSA), the same report said. In an anxious week for Nigeria’s crypto industry, regulators made significant changes, blocking access to the websites of several exchanges and pegging USDT/NGN exchange rates. On Wednesday, several crypto exchanges barred users from buying the USDT and USDC stablecoins, TechCabal reported. Breaking: Binance and other crypto platforms suspend USDT, USDC purchases after CBN scrutiny The Nigerian authorities have been silent on the arrest. A spokesperson of the NSA told TechCabal he knew nothing about the arrest and it was likely that the action was taken by other security outfits. Olayemi Cardoso, the central bank governor, alluded to some actions by security agencies at the end of the monetary policy meeting on Tuesday and said those actions would soon be made public. He also said the regulatory environment was about to get stricter, warning speculators about consequences. Nigeria’s aggressive move against these crypto companies comes months after it reversed a long-standing ban that shut them out from banking services. One Binance employee also told this publication that their office had warned them against wearing Binance merchandise or sharing of any identifiers of their employers. *This is a developing story.
Read MoreMore Nigerians move to 4G, 5G as device financing push smartphone adoption
More Nigerians are moving to 4G and 5G networks thanks to more affordable and flexible smartphone financing, according to telecom industry experts who spoke to TechCabal. There were only 2.18 million 3G subscriptions in December 2023, while 2G usage, which accounts for more than half of mobile internet subscriptions (57.84%), also declined. The growth in 4G and 5G subscriptions happened despite supply chain disruptions and inflationary pressures that raised the prices of smartphones by 30%, data from GSMA showed. Nigerians are tapping into flexible device financing opportunities to be part of the evolving 5G community, according to Karl Toriola, CEO of MTN Nigeria. On Arise TV’s show ‘Tech into the Future’, the telco CEO noted that since the rollout of 5G technology in 2022, the coverage has quadrupled in the country. MTN is working with several partners across the continent to make it easier for consumers to access mobile devices by paying at their convenience. However, Toriola says while momentum may take a while to build, it has deployed its fintech unit, MoMo PSB to help predict behavioural patterns and creditworthiness. The number of 5G subscribers rose to 1.04% of the total internet subscribers in December 2023 for the first since the Nigerian Communications Commission (NCC) started to track the data. The 4G network also saw its biggest growth in December with 31.33& of the market. How smartphone adoption is growing The focus of telecom operators on pushing more investments in 4G and 5G network infrastructure means that vendors like TRANSSION, Samsung, Xiaomi, and many others are prioritising 4G and 5G-enabled smartphones. At least N613 billion was deployed into infrastructure by MTN Nigeria and Airtel Africa to expand their 4G and 5G networks by the end of 2022. MTN spent N504.33 billion on its network rollout while Airtel invested N108.79 billion in the same period. Those investments paid off in 2023. A December 2023 report by Canalys notes that the African region experienced an impressive 12% year-on-year growth in smartphone shipments, a total of 17.9 million units. As of January 2024, TECNO leads the smartphone vendor market with 26.03% followed by a sister brand, Infinix with 20.88%. Samsung is in third position with 11.43%, while Apple in fourth has 9.66% of the market. The devaluation of the naira, which has seen it tumble to record lows, is likely to affect the momentum of vendors in 2024. TECNO said it plans to release four smartphones this year compared to the seven it released last year. All the smartphones released by the brand in 2023 were 4G and 5G enabled. However, the company spokesperson said the phones also accommodate all the networks. With more Nigerians finding easier ways to purchase new smartphones, penetration figures for the industry rose to 51% in 2023 and are expected to reach 55% in 2024. How smartphone financing is driving growth Vendors also use innovative financing instruments to ease cost pressures on consumers in Nigeria and across Africa. Most smartphone financing takes the form of a Buy-Now-Pay-Later scheme which allows brand customers to purchase smartphones and pay the cost over a specified period. In 2022, for example, MTN announced a financing deal with Intelligra. The telco said its goal was to connect more Nigerians to the internet and create a Nigeria where people can achieve their dreams due to a lack of internet access. Airtel told TechCabal that it has a financing deal with iTel that encourages subscribers to purchase the brand’s smartphone ranges. “These deals are helping subscribers acquire 4G/5G devices and routers,” said Sam Adeoye, Airtel Nigeria’s head of public relations. Telcos winning the 4G/5G race MTN and Airtel are the biggest winners of the internet data market in Nigeria. Generally, MTN maintains its lead in the internet market in Nigeria with the number of subscriptions rising to 70.6 million in December from 69.6 million and January 2023. It also means the telco recorded 4.21 million subscriptions in 2023. Airtel is second in the internet market with 45 million subscriptions. The telco added 3.27 million subscriptions in 2023. The telcos leadership of 5G particularly may not come as a surprise to many Nigerians given that the two telcos are the only 5G operators in the country that have launched their services and are now deploying across the country. While MTN Nigeria has 5G in 13 cities, Airtel said it had deployed in four cities so far and is currently testing in Osogbo, the Osun state capital. In terms of 4G connectivity, MTN Nigeria leads other operators offering 4G coverage 75% of the time, and Airtel, in second place, offers 4G coverage 71% of the time.
Read MoreGITEX Africa wants 100 Nigerian startups to exhibit in Morocco
The Gulf Information Technology Exhibition (GITEX) wants to bring about 100 Nigerian companies to Marrakech, Morocco where the second edition of the event in Africa (GITEX Africa) is taking place in May 2024. Last year only seven tech startups from Nigeria, out of 450 global startups, participated in the event. At a stakeholders meeting on Tuesday 27 February 2024, the organisers, Digital Development Agency, said it was expanding Nigeria’s participation in the event because of the role tech companies from the country have played in the development of the ecosystem in Africa. The participating startups would have the opportunity to compete for a $100,000 prize money for the startup with the most compelling innovation. There are other prizes to compete for including the Young African CEO award which comes with a monetary prize. This year’s edition comes with the launch of World Future Health Africa, an initiative that seeks to bring more attention to the digital health space with the potential to provide affordable and accessible healthcare. Funding to digital health companies and projects on the continent is still very low due to the complex and divergent regulatory landscape, according to GITEX. This complexity dissuades potential investors and obstructs crucial financial support for the space. The 100 startups will be selected from accelerators and other stakeholders working with the Digital Development Agency, the event organiser. Dubbed the largest tech gathering in Africa, GITEX offers startups the platform to present their innovations to a diverse selection of investors from different countries including Nigeria. They also learn from the experiences of entrepreneurs and founders who have built global and local companies, as well as interact with regulators on the continent. As part of post-event onboarding, startups that attend GITEX Africa are often matched to investors according to the industry where they operate. The organisers also curate a program that enables startups to meet with potential clients, including government agencies looking for specific innovative solutions tailored to the challenges their countries face. While GITEX is sector-agnostic, organisers often follow market trends and seek startups that are providing solutions in the markets investors are focusing on. This often influences the criteria for startup selection. For example, the current trend favours startups working with artificial intelligence, fintech, agrotech, and healthtech startups. The organisers also prefer startups with products already in the market. However, for founders with ideas to pitch, they have to ensure the ideas are tested and are market viable. The founders need to have some traction to pitch to investors.
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