Transforming last-mile delivery in Nigeria
Moonshot by TechCabal is the conference that will bring together Africa’s tech ecosystem in person to network, collaborate, share insights and celebrate innovation. Join us in Lagos on October 11 and 12. In this article built around the conference, Hannatu Asheolge writes about what it would take to transform the last-mile delivery space in Nigeria to ensure that it reaches its full potential. Hylehirra Samaila is an entrepreneur selling clothes and shoes on social media since 2021 via HeraCloset. Of all the parts of running a business, dealing with logistics is the most challenging and distressing for her, despite being an integral part of her business. Having products delivered to customers can be a hassle, as delivery riders are typically unreliable, delivering goods much later than planned and riling up her clients in the process. Nigeria has one of the fastest-growing last-mile logistics industries in Africa, driven by a combination of factors like the growing youth population and increasing internet penetration—among others. There is a rising demand for consumer goods and services across the country and revenue in Nigeria’s e-commerce scene is expected to reach $9.2 billion by the end of 2023. These goods must be moved across various points, necessitating last-mile deliveries. Due to the industry’s success, there has been an influx of last-mile logistics startups in recent years. However, these startups suffer from a variety of challenges which impede the growth of the sector, ranging from infrastructure deficits to policies that undermine the ease of doing business, low trust among customers, and high operational costs. The problems of last-mile delivery in Nigeria Nigeria has a terrible road network, the worst in Africa, which is one of the biggest problems plaguing last-mile delivery in the country. According to Ope Onaboye, CEO of e-commerce fulfilment startup, Renda, their Kenyan customers can order goods and have them delivered in 15 minutes due to their advanced road network. This is rare in Nigeria, especially in major cities like Lagos, which is one of the most congested in the world. Commuters spend a minimum of three hours in traffic daily, and for a logistics business, this translates to less productivity and increased operational costs. Traffic congestion and a bad road network have remained the biggest pain points in logistics management, because, beyond increasing operational costs, they nullify delivery estimates and predictions, breaking the system flow of deliveries and leading to dissatisfied customers. Samaila has had several cases where she’s had to refund angry customers for deliveries not making it out on time, which affects her business’s growth and incurs losses for her. “Sometimes you send out orders as early as 9 a.m., promising the customers that they’ll receive it in two or three hours, only for their deliveries to be stuck in traffic for up to seven hours,” she lamented. In May 2023, the Nigerian government removed a fuel subsidy which had been keeping the price of fuel low for its citizens, effectively raising the price from ₦190 to ₦610. This single policy has negatively impacted last-mile operations in the country, causing them to lose customers or lose money trying to satisfy customers. “If we’re being realistic, you can’t just move from charging customers ₦2,000 for delivery to ₦6,000. You have to find a middle ground that your customers can afford, which means that you’ll be operating on a deficit in the cost versus your revenue because you cannot transfer the cost of logistics to your customers after a certain point,” Onaboye shared with TechCabal on a call. Business owners like Samaila have had to find ways to cut costs for customers, which she says is exhausting. Delivery has moved from what typically costs ₦2,000 to ₦3,000 or ₦3,500. Fortunately for Samaila, her customers have been understanding of the situation and do their best to cooperate, for the most part. Onaboye cannot say the same for his company. Some of Renda’s clients have not been as understanding, and the fuel price hike has reduced the volume of orders they process. “We have to continuously engage with stakeholders, which is not easy, as some of them have turned their backs on us. The fuel price hike has hit us in terms of volume, but we have to keep ensuring that our customers feel supported and our partners are happy. We have these conversations every single day,” Onaboye shared. Transforming last-mile delivery in Nigeria The Nigerian logistics market size is expected to reach $58.6 billion by 2029, with road deliveries being the fastest-growing segment. This growth cannot be actualised in isolation without the government playing a role. Recent government policies have resulted in the shutdown of a good number of last-mile delivery startups and, if it continues, will only impede the industry’s growth. Logistics is pretty much transportation, which is using vehicles to move goods, and so the environment that allows for smooth transportation needs to be there. Good roads and road networks not only improve delivery times but reduce the maintenance costs of vehicles. The more dilapidated the roads are, the easier it is for vehicles to get damaged and require fixing. Kana Fanda, who runs a small last-mile delivery business, says she’s lost track of how many times she changed tyres for her bikes last year. “You can’t even blame the riders because the bumps and potholes on the roads are very bad. There are times when the entire revenue made goes into fixing a bike due to a road accident, which is very bad for business.” Now, her bikes only deliver parcels to areas where they’re certain the roads are smoother. While she has had to give up a large number of her customers, thereby slowing the growth of her business, she believes that that is better than spending the bulk of her revenue fixing bikes. Government has another important role to play in transforming last-mile delivery, apart from fixing roads. According to Onaboye, the government needs to be deliberate about the policies that are implemented and how they affect businesses.
Read MoreHow can startups partner with influencers to reach a larger audience?
Moonshot by TechCabal is the conference that will bring together Africa’s tech ecosystem in person to network, collaborate, share insights and celebrate innovation. Join us in Lagos on October 11 and 12. In this article built around the conference, Faith Omoniyi writes that influencer-marketing can be a viable approach for African startups trying to reach larger audiences, although it comes with several challenges. More than ever before, African startups are riding on the wings of digital influencers through influencer marketing to increase awareness for and reach of their products and offerings. Influencer marketing is a type of marketing strategy that focuses on using individuals—influencers—with a significant online presence and a dedicated following to promote products, services, or brands. These influencers have the ability to sway the opinions and purchasing decisions of their followers based on their credibility, authority, and relatability within a specific niche or industry. When approached strategically, influencer marketing can be a viable approach for African startups, provided it is aligned with the brand’s objectives and target audience, said Edward Israel-Ayide, a public relations and marketing communications consultant. However, forging this alignment and getting influencers to understand a startup’s objectives has proven to be a big challenge, according to Adewale Yusuf, CEO of AltSchool Africa. “You know, [the tech space] is not [influencers’] world. Most of them understand the entertainment scene. Trying to get them onboard [tech products or brands] is like the biggest challenge,” he said. While brand alignment is crucial for startups-influencer partnerships, influencer marketing is expensive and not suitable for startups that are just starting. “Influencer marketing should come when a startup has found its feet and when they have established a brand identity, so it will inform their choice of influencer marketing,” said Kola Muhammed, editor at Pulse NG. “Get your books right, get your products right, get your organic marketing right, get your services right before delving into influencer marketing, else an influencer partnership can bring you more traffic than your business can handle,” he added. One-size-fits-all? Israel-Ayide notes that while influencer marketing might prove viable for African startups, the relevance and authenticity of the influencers are key ingredients in making influencer- startup collaboration work long term. “Influencers must resonate with the startup’s values, target audience, and brand identity. Authenticity plays a pivotal role, as African consumers tend to forge stronger connections with influencers whose beliefs align with the brand’s message and image.” Additionally, the diverse cultural landscape across Africa requires nuanced understanding. What might resonate in one region could fall flat in another, said Israel-Ayide. “Startups must collaborate with PR and marketing agencies to undertake extensive research, which will provide them with a comprehensive understanding of local preferences, emerging trends, and cultural nuances, enabling them to select influencers who can effectively represent the brand’s narrative within each setting,” he said. Afrobeats startup mashup While startups collaborate with different micro- and nano-influencers to promote their brands, Muhammed is of the opinion that African startups can ride on the wave of the Afrobeats-to-the-world movement. Afrobeats, a term that describes the most popular music coming out of West Africa, is gaining massive acceptance all over the world. While there are obvious and overtly capitalist reasons for the burgeoning interest in music from Africa, Muhammed believes African startups can leverage this influence for brand awareness. Afrobeats artists are selling out stadiums outside the shores of the continent, meaning further reach for the startups. “Imagine a Flutterwave lighting up the O2 Arena. Music can help tech, tech can help music,” he said. “Take Pepsi, for example: Pepsi goes for the top guys—Pogba, Burna Boy, Michael Jackson, Messi—influencers in their own right, to market their products. I think Nigerian and African startups can also adopt that. Imagine Wizkid or Burna Boy selling out the O2 Arena in London and you have different startup logos flying on the homescreen,” he said. Did you enjoy this article? Then click this link to register for Moonshot and check out our fast-growing list of speakers coming to the conference!
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Urgent news on SRD SASSA payment, applying 2023
Earlier this year, some revisions were made by the Department of Social Development (DSD), modifying job Regulations pertaining to the Covid-19 Social Relief of Distress (SRD) grant as outlined in the Social Assistance Act. These adjustments pertain to the expiration date of the grant payments. Please be informed that the grant programme will be ending in March 2024. Beyond this, all components of the SRD SASSA payment regulations remain unaltered, including the grant’s value, which remains at R350 per month. Given the recurring uncertainties surrounding the continuation of the SRD grant since 2021, there are talks that the SRD grant should be sustained indefinitely and its value adjusted to account for current inflation in 2023. The argument is that it should be left to run until a more comprehensive system of basic income support, pegged at least to the Food Poverty Line and increasing over time to the above the Poverty Line, can replace it. A school of thought in the government highlights that the constitution mandates the gradual realisation of social assistance for those in need, and removing funding for the SRD grant would be a regression of constitutionally provided rights. Whether the grant will be sustained beyond 2024 is still under doubt. However, you may want to take more proactive steps on your SRD SASSA payment application process. If you have a pending appeal, you may want to check its status. If you need to change your banking details, you may want to start the process as soon as possible. Apply for the SRD SASSA payment today For those who are looking to start the SRD SASSA payment application, read the following quick steps: 1. Eligibility Check: Ensure you meet the eligibility criteria, which typically include being a South African citizen or permanent resident, unemployed, and between the ages of 18 and 59. 2. Required Documentation: Gather necessary documents such as your South African ID or permit, proof of address, and details of your financial situation, like income and expenses. 3. Application form: Create an account on the SASSA website. Fill out an application form on the SASSA. Complete the form accurately and honestly. 4. Submission: Submit your completed application form on the portal. 5. Follow Up: After submission, keep track of your application status. You can do this by contacting the SASSA office, visiting their website, or using any communication channels they provide. You can read more about applying for the SASSA Grant here. Final thoughts Remember that application processes and requirements can change, so it’s wise to check with the official SASSA website or local offices for the most up-to-date information before proceeding. Also, the deadline for the grant payment may be extended, however, you’re advised to take active steps towards receiving your payments in time before it ends.
Read MoreExclusive: Moniepoint moves into retail banking space
Moniepoint, one of Nigeria’s biggest business banks, is moving into personal banking with the launch of a consumer app and debit card. Moniepoint, a Nigerian business bank with an annualised total payment volume of $170 billion, is venturing into the personal banking space like its business banking competitors, OPay and PalmPay. The company says the new app will enable users to make transfers, pay bills, and buy airtime, while its debit cards, which will be issued through Mastercard and Verve, can be used at ATMs, POS terminals, and online. The company also says it will introduce a first-of-its-kind automated dispute resolution system that will enable users to log disputes for failed card transactions and track them until they get a full reversal within 48 hours. This is in line with the CBN’s guidelines on chargebacks, which mandate a 48-hour reversal period. When asked why Moniepoint was venturing into the highly saturated personal banking space, Ope Adeyemi, a senior vice president, told TechCabal that Moniepoint saw “an opportunity to make things better.” “We currently have 650,000 terminals all over the country, and assuming there are 120 million adults in Nigeria, the ratio is 185:1. We can leverage this to make payments and banking better.” Adeyemi also added that with Moniepoint’s personal banking app, the company would be able to bring reliability to payments. “We still have to rely on other banks to complete payments, but the idea here is to improve the reliability of making payments and banking by ensuring that the process of making payments starts with the customer on Moniepoint and ends with the merchants on Moniepoint as well; that way we can literally almost guarantee 100% success rates,” he said. For an 8-year-old payments company, Moniepoint could have launched a personal banking product earlier, but Adeyemi shared that the company chose now because “[Moniepoint] are positioned to do it right.” He added that the company had designed its personal banking app to be as reliable as possible and added features such as salary advances. The app would also contain all the sensitive information on a customer’s debit card instead of being on the card. Adeyemi also added that a play at remittances would come later for both its business customers and its personal bank customers.
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How to flash an Android phone 2023
Android phones are better built these days, so people hardly need to flash phones as the case used to be in the introductory era of Android devices. Flashing an Android phone is a complex process that involves installing a new firmware or operating system on your device. This can be necessary if you want to update to a newer version of Android, fix software issues, remove a virus, or even install a custom ROM. Here are the steps to flash an Android phone: 1. Backup your data Before you start the flashing process, make sure to back up all your important data, as the process will erase everything on your device. 2. Unlock bootloader Many Android devices require an unlocked bootloader to install custom firmware. You can usually do this by enabling Developer Options in Settings, enabling OEM unlocking, and then using fastboot commands on a computer to unlock the bootloader. 3. Download firmware or ROM Obtain the firmware or custom ROM that you want to install on your device. Make sure it’s compatible with your phone’s model and version. 4. Install USB drivers Ensure you have the appropriate USB drivers for your phone installed on your computer. These drivers allow your computer to communicate with your device during the flashing process. 5. Install ADB and fastboot tools These tools enable you to send commands from your computer to your device while it’s in bootloader mode. You can download and install them on your computer. 6. Enable USB debugging On your phone, enable USB Debugging in the Developer Options. This allows your computer to send commands to your device. 7. Boot into bootloader mode Power off your device and then boot it into bootloader mode by pressing specific key combinations. This varies by device, so refer to your device’s manual. Or check online for your specific phone’s navigation. 8. Connect your device Connect your device to your computer using a USB cable. 9. Flash the firmware or ROM Use the fastboot commands to flash the firmware or custom ROM onto your device. This process might involve multiple steps, including flashing individual components like the system, boot, recovery, etc. 10. Wipe data and cache to continue flash on Android phone After flashing, it’s recommended to perform a “factory reset” from the recovery mode. This will clear old data and cache, ensuring a clean installation. 11. Reboot after flash on Android phone Once the flashing process is complete, reboot your device. It might take a bit longer than usual for the first boot as the system sets up. 12. Set up your device Follow the on-screen instructions to set up your device, including signing in with your Google account. 13. Test and troubleshoot after flash on Android phone Test your device thoroughly to ensure that everything is working as expected. Sometimes, issues might arise due to incompatible firmware or bugs in custom ROMs. 14. Restore data to complete flash on Android phone If you backed up your data in the first step, you can now restore it to your device. 15. Lock bootloader (Optional) If you unlocked the bootloader in step 2 and you’re not planning to install custom firmware permanently, you might want to relock the bootloader for security reasons. Final thoughts on how to flash an Android phone 2023 Remember that flashing your Android phone carries risks, and if not done properly, it can lead to a bricked device. Ensure you follow accurate instructions for your specific device and proceed with caution. If you’re not comfortable with the process, it might be best to seek help from experienced users or professionals.
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👨🏿🚀TechCabal Daily – Skills, Skills, Skills
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy pre-Friday Congratulations to Nigeria’s tech ecosystem! Yesterday, CcHub funder Bosun Tijanu was confirmed as the country’s new minister of communications and digital economy. The 46-year-old tech entrepreneur and investor is now tasked with driving impactful policies to support the Nigerian tech ecosystem. In today’s edition M-PESA is live in Ethiopia Kenya’s Startup Bill moves forward Google to train 20,000 Nigerians AWS launches first Africa skill centre The World Wide Web3 Event: The Moonshot Conference Opportunities Mobile Money M-PESA launches in Ethiopia Image Source: Safaricom M-PESA, the fintech arm of telecom Safaricom, is now live in Ethiopia. The telecom got its mobile money license in May, and it launched yesterday to serve the 2 million users that Safaricom has attracted since it expanded to Ethiopia last year. Side bar: Safaricom became the first private telecom provider in Ethiopia after the government opened up its state-controlled telecom sector to private companies. Ethiopia, which has around 120 million people, presents an enormous opportunity for Safaricom’s telecom and fintech business. A bigger and older competitor: M-PESA will face stiff competition from the state-controlled Ethio Telecom’s mobile money service Telebirr which reportedly has more than 34 million subscribers. The parent company Ethio Telecom is currently doing way better than Safaricom which saw a dip of around 20% in its core earnings in the year ending on March 31. This was due to the cost of its expansion to Ethiopia. Safaricom has made a really big bet, and time will tell if it was worth it. Secure payments with Monnify Monnify has simplified how businesses accept payments to enable growth. We are trusted by Piggyvest, Buypower, Wakanow, Fairmoney, Cowrywise, and over 10,000 Nigerian businesses. Get your Monnify account today here. Legislation Kenya’s Startup Bill 2022 reaches Second Reading Kenya’s Startup Bill 2022 has moved forward. The bill has now reached the Second Reading stage in the Senate, after its first reading on February 15, 2023. Per Techmoran, the bill aims to provide a comprehensive legal framework to encourage the growth of innovative startups in the country. How so? The Startup Bill promises to usher in a slew of game-changing provisions. These provisions will expedite business registration, simplify tax, reduce bureaucracy and regulatory hurdles, and increase collaboration. It also provides mechanisms for easier access to funding, from dedicated funds for fledgling startups to tax perks for angel investors. It also promotes the protection of intellectual property locally and internationally. Zoom out: Kenya’s Startup Bill is toeing the same line as the Nigeria Startup Act which the country passed into law last year. Like Nigeria, Kenya hopes that the bill will make the country a cozy nest for startups to hatch and flourish. Discover Trends with Smile Identity Download the Smile ID State of KYC in Africa Report on the latest trends in identity verification across Africa, highlighting the power of biometric verification and document verification in combating fraud. It is a must-read for any business looking to acquire users across Africa and keep up with fraud trends. Big Tech AWS launches first Africa Skill Centre in Cape Town Image Source: Amazon South Africans are getting upskilled. Amazon Web Services (AWS) has launched its first African Skills Centre in Cape Town, South Africa, to remove barriers to cloud skill training. The AWS Skills Centres are specialised, on-site cloud learning facilities designed by Amazon for people interested in cloud computing who want to discover potential career paths within the industry, and learn how to develop the skills required. Earlier this year, the big tech company announced that it would invest $1.8 billion in South Africa by 2029, and this appears to be part of that investment. This is the third AWS Skills Centre—first in Africa—the company has opened globally. Its other two centres are in Arlington, Virginia, and Seattle, Washington, both in the United States. The new cloud computing training facility is part of Amazon’s commitment to helping 29 million people worldwide improve their tech skills for free by 2025. Zoom Out: According to the World Economic Forum’sThe Future of Jobs Report 2023, most organisations identify skills gaps and an inability to attract talent as the primary barriers to industry transformation. By 2027, 60% of workers will need training, but only half can currently access sufficient training opportunities. Consequently, AWS said the new facility in Cape Town will increase community transformation efforts and workforce-development initiatives. One of the main goals is to level the playing field by offering free education programmes to nontechnical workers, which will assist in meeting the increasing demand for qualified cloud talent. Big Tech Google to train 20,000 Nigerians in digital skills Image source: YungNollywood In more training news, Google also wants to upskill Nigerian youths. The big tech company will reportedly train 20,000 Nigerian women and youths in digital skills. Alongside training, Google will also invest ₦1.2-billion ($1.5 million) in helping the government create one million digital jobs in the country. Per its Africa executives, the programme is in conjunction with Data Science Nigeria and the Creative Industry Initiative for Africa. Google director for West Africa Olumide Balogun said the company would commit funds and provide digital skills to women and young people in Nigeria and also enable start-ups to grow, which will create jobs. Zoom Out: Nigeria has a growing young population, About half of the population—a staggering 110 million—is 17 or younger. However, figures from the National Bureau of Statistics put the country‘s unemployment rate at 33.3%. Google’s plan to equip 20,000 youths with digital skills represents a good step in enabling Nigeria unleash its human capital potential—which seems like its greatest asset. Save costs with QoreID Seamless customer onboarding made easy! Onboard users instantly and save costs with CBN compliant regulations. To learn more, visit www.qoreid.com or book an instant demo at sales@qoreid.com Crypto Tracker The World Wide Web3 Source: Coin Name Current Value Day Month Bitcoin $28,601 – 1.97% – 5.63% Ether $1,796 – 1.57% – 7.02% CyberConnect
Read MoreBosun Tijani named minister of communications and digital economy
Bosun Tijani has been named the minister of communications, innovation, and digital economy. The 46-year-old tech entrepreneur and investor is now tasked with driving impactful policies to support the Nigerian tech ecosystem. After scaling through a grueling ministerial screening, Bosun Tijani has been named minister of communications, innovation, and digital economy, according to a list conveying ministerial portfolios unveiled on Wednesday. The CcHub CEO, whose nomination has signified new heights for Nigeria’s tech ecosystem, had faced opposition from lawmakers over his critical tweets about Nigeria’s politics and politicians. But a heartfelt apology was his saving grace. His appointment represents a break from the norm of civil servants and career politicians being appointed as the minister responsible for Nigeria’s fast-growing digital economy. For instance, the immediate past minister of communications and digital economy, Isa Pantanmi formerly served as the director-general of the National Information Technology Development Agency (NITDA). Although Tijani won’t be the first startup founder to serve in government, this will be the first time that a member of the tech ecosystem will be getting a cabinet position, creating a new level of validation. The 46-year-old, who co-founded one of the most influential tech incubators on the continent, will now be tasked with driving impactful policies to support the ecosystem he has helped build. Just last week, Obi Ozor, the CEO of Kobo360, a logistics startup, was appointed as commissioner of transport in Enugu. Tijani has led the expansion of CcHub across Nigeria, Kenya, and more recently, Namibia. From its humble beginnings in Yaba, CcHub has grown to become a significant catalyst of tech advancement in Africa by empowering young people with the tools, communities, and capital they need to launch impactful ventures. With a billion naira growth fund, CcHub has committed to impacting over 95 early-stage businesses including those bringing innovation to Africa’s education and healthcare systems.
Read MoreM-PESA goes live in Ethiopia today, but it has a long way to catch up to Telebirr
While Safaricom officially launched in Ethiopia in October 2022, the big question was when it would launch M-PESA, its popular mobile money product. The answer came three months ago when Ethiopia granted a mobile money license to Safaricom. Starting today, M-PESA will become immediately available to 4 million Ethiopians. Stanley Njoroge, interim CEO of Safaricom Ethiopia, said, “We are excited to go live with M-PESA in Ethiopia and start providing Mobile Financial Services to our customers. M-Pesa is known to be a game-changer for financial inclusion and provides services to more than 51 million customers across seven countries in Africa offering a safe and secure platform for transactions.” The service can be accessed via USSD code *733# or the M-PESA Safaricom Ethiopia smartphone app, available for both iOS and Android. However, according to a Safaricom Ethiopia’s X account post, the app will only be accessible to customers in the coming weeks. Safaricom has also not disclosed whether a dedicated M-PESA super app will complement the service. Safaricom launched a separate super app for M-PESA for Kenyan customers that bundles all M-PESA services, including credit facilities and mini apps that leverage the M-PESA payment ecosystem. Based on trends in Kenya, complementary M-PESA products in Ethiopia will eventually be replicated in the market, but that can only happen after the service successfully scales. Paul Kavavu, Interim General Manager of Safaricom M-PESA Mobile Financial Services PLC, said, “M-Pesa is Africa’s most successful mobile money service and the region’s largest fintech platform both for the banked and unbanked due to its safety and convenience. It also provides financial services to millions of people who have mobile phones, but do not have bank accounts, or only have limited access to banking services. In Kenya, it has enabled the growth of financial inclusion that over 90% of the adult population has access to mobile banking. We look forward to replicating this success in Ethiopia and excited to go live with the services. In the coming months we will continue to add more functions and work with all Ethiopians to jointly realize the transformative power of M-PESA.” M-PESA will compete with Ethio Telecom’s Telebirr, which has been in operation since 2021. Telebirr has gained popularity in Ethiopia’s finance sector, serving 34.3 million customers and with transactions valued at $12.3 billion. It provides key digital financial services, including Telebirr Sanduq and Endekise. These services have extended microloans adding up to $74.4 million, 2.4 million customers, and facilitated over $3.6 billion in micro-savings. Alongside the Commercial Bank of Ethiopia, Telebirr plans to boost its offerings, similar to M-PESA, by introducing loan and savings products. Its network includes 615 service centers, 136 master agents, and 107,300 agents.
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The CBN is hoping a $3bn emergency loan will solve Nigeria’s FX problems
As the CBN struggles to solve Nigeria’s FX problems, it will receive a $3bn boost. The jury is out on whether this will bring short-term stability. A day after the acting CBN governor Folashodun Shonubi told reporters about plans to stabilise Nigeria’s recently volatile FX market, the Naira gained N30, exchanging for N910/$1 on the parallel market after closing at N940/$1 on Tuesday. After a meeting with President Tinubu on Tuesday, Shonubi said the CBN would roll out new measures; “Some of the plans and strategies, which I am not at liberty to share with you, means sooner rather than later, the speculators should be careful because we believe the things we’re doing, when they come to fruition, may result in significant losses to them.” Price movement on Nigeria’s parallel market After an attempt to unify rates began with optimism in June, it became clear that the CBN did not have the resources to settle the FX backlog. This inability to meet demand meant that the parallel market continued to be the viable source of supply, creating sharp differences in price from the official I&E window. At the time of this report, the I&E window quoted a price of N785/$1, presenting an arbitrage opportunity that the CBN is desperate to eliminate. While the markets moved quickly today, many observers remained at a loss about what drove the gains. NNPC Limited confirmed today that it secured a $3 billion emergency crude repayment loan from Afrexim Bank. The thinking is that the loan will clear the current FX backlog, which some sources earlier estimated to be between $2.5 billion and will stabilise prices. Yet, things could turn out differently. With an actual backlog of FX demand of $10 billion (8 Trillion), the loan from Afrexim may be incapable of solving the liquidity problem in the medium or long term. Some observers have suggested that an IMF loan is inevitable, given the country’s finances. In the end, loans, wherever they’re from, are only temporary solutions to get the house in order. Nigeria will need to deepen its FX and monetary reforms and improve its oil production.
Read MoreMTN fintech and data products drive boost service revenue to $335 million in Uganda
MTN has reported service revenue strides to $335 million. Its fintech product, among other services such as data and voice, substantially contributed to this growth. MTN Uganda has recorded a 15% jump in service revenue, reaching Ush 1,250 billion ($335 million), driven by strong voice, data, and fintech performance. This growth was reported during H1 2023, ending on June 30. Sylvia Mulinge, MTN Uganda CEO, noted that the 15.0% service revenue growth aligns with the company’s target, reflecting resilient voice performance, double-digit data, and fintech revenue growth. “Despite inflation, we managed costs effectively,” she stated. Voice revenue increased by 9.4%, supported by customer base expansion. Net additions added 910,000 customers, reaching 18.1 million, driven by strategic gains. MTN Uganda further eased 2G congestion through customer migration to 3G, enhancing the customer experience. However, customer transition to new networks remains a challenge, unlike neighbouring Kenya where Airtel Kenya and Safaricom have already launched 5G services, with Airtel leading the pack. MTN Uganda’s data revenue rose 22.1% to Ush 290.2 billion ($78 million), driven by 21.4% growth in active data subscribers, up to 6.9 million. Smartphone penetration grew to 35.7%, with 24.1% more smartphone users. Efforts to promote smartphone adoption included partnerships with TakeNow and supported by MTN Kabode smartphone sales. MTN Pay Mpola Mpola offers smartphone instalment plans, while Kaboda smartphones provide affordable devices with internet access and data bundles. A similar product exists in Kenya through Safaricom’s Lipa Mdogo Mdogo program. Both aim to provide accessible smartphone choices. This replication is unsurprising, considering Mulinge served as Safaricom’s chief consumer business officer before leaving the company in October 2022 for MTN. “On the commercial side, we ramped up efforts on smartphone adoption through partnerships with manufacturers and enhanced our device financing programme to address the affordability challenges. These initiatives drove a 24.1% growth in smartphone users and improved our smartphone penetration to 35.7% (+3.7pp),” added Mulinge. MTN Uganda’s fintech revenue grew 18.6% to Ush 358.3 billion ($96 million). According to the data, fintech users reached 10.9 million customers (+11.6%), following advanced revenue sources, mainly in payments and international remittances. Customer uptake of MoMoPay drove merchant expansion to 267,000 (+223%), leading to a 26.3% jump in transaction volumes, up to 1.6 billion, and a 44.4% growth in transaction value to Ush 61.6 trillion. Agent numbers, however, decreased to 162k (-5.5%). “Our efforts were directed towards digitalisation of our customer value chains to drive cashless payments with MoMo Pay and enhancements in our international remittances portfolio to support borderless payments in key trade markets. This has augured well for our advanced revenue contribution growing to 26.3% (+8.8pp) in line with our medium-term objectives,” Mulinge clarified. These numbers showcase the importance of fintech services in MTN Uganda’s revenue targets. MTN offers similar products in other markets across the continent, and just the other day, Mastercard said it would purchase a minority stake In MTN Group’s fintech business. The purchase will focus on MoMo, a mobile money service, which has been valued at $ 5.2 billion.
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