MTN 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.
Read MoreFundus AI, XchangeBox win Gitex Africa 2024 Road Show, Abuja
On Monday, Gitex, the world’s largest tech and startup show, kicked off its 2024 Road Show in Abuja. The event featured a pitch competition focused on agritech, healthtech, and fintech, with 19 startups vying for top honours. Fundus AI, an AI-powered solution for diagnosing diabetic retinopathy co-founded by Abdulmalik Adeyemo, and XchangeBox Solutions, a fintech startup supporting rural SMEs with loans and digital records—co-founded by Abiola Jimoh, emerged as the winners in 1st and 2nd place respectively. Both winners will receive a trip to Gitex Africa 2024 in Morocco, including accommodation, an exhibition booth, and entry to the Supernova Challenge with a chance to win $100,000. The Road Show continues in Lagos and wraps up in Kaduna—Gitex Africa’s first-ever event in the city—on Thursday. Beyond the startup pitches, the event featured a breakfast meeting between industry leaders and Bilal Al-Rais, Vice President, Portfolio Growth Tech & Digital, Dubai World Trade Centre. A panel discussion which focused on fostering cross-border collaboration to drive business growth was held. Participants included Khalil Halilu, CEO of the National Agency for Science and Engineering Infrastructure (NASENI) and representatives from Nigerian agencies such as the National Information Technology Development Agency (NITDA), National Standardisation Agency of Ireland (NSAI), Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Wema Bank, and the Nigerian Export Promotion Council (NEPC). Startups outside Lagos and Abuja feel neglected With the Nigerian tech ecosystem being one of the fastest growing in the world, raising $398.2 million in funding in 2023, startups in the northern region still struggle to scale due to a lack of access to funding. At the Gitex Breakfast Briefing, discussions emerged on how to give visibility and resources to startups outside major cities like Lagos and Abuja. Usman Illiyas, co-founder of Startup Bauchi, a humanitarian development program that focuses on supporting startups, particularly in Bauchi, highlighted the disconnect between organic startups and government agencies. “The state government and government agencies are the first point of communication for Gitex and the likes when sourcing new talents and innovation. However, without proper communication between the state government and Nigerian startups, many startups lose access to gain the visibility they need,” Illiyas noted. Illiyas and many other participants suggested improving communication between the government and startups to ensure these startups have access to opportunities like GITEX Africa. Other upcoming Gitex events include GITEX Africa 2024, which will take place in Morocco from May 29-31, 2024, followed by GITEX Global in Dubai from October 14-18, 2024. GITEX will make its debut in Europe in 2025, scheduled for May 21-23.
Read MoreBreaking: Crypto platforms suspend USDT, USDC purchases after CBN scrutiny
A handful of crypto companies in Nigeria will no longer allow users to buy the USDT and USDC stablecoins with Naira after renewed scrutiny from the Central Bank of Nigeria (CBN). “There was a meeting of crypto founders on Tuesday morning, and a number of them agreed to suspend the trades on their platform,” a person at that meeting told TechCabal. A second crypto industry player confirmed the meeting but declined to share details. At least two crypto exchanges have told their Nigerian customers about the new development. “We are suspending the buying and selling of USDT and USDC for Naira. This means you can’t buy or sell USDT or USDC with Naira,” said a notification sent by one exchange to customers. Crypto exchanges in crosshairs as CBN talks tough Binance and other exchanges have found themselves in regulatory crosshairs as regulators believe that crypto platforms encourage speculators to manipulate exchange rates. This week, users could not access the websites of crypto exchanges like Coinbase, Quidax, and Binance. Increased volatility in Nigeria’s FX markets has triggered several policy actions, and on Tuesday afternoon, Olayemi Cardoso, the Central Bank governor, claimed “$26 billion has passed through Binance Nigeria from sources and users we cannot identify.” An autonomous group, the Digital Currency Coalition, also claimed that the speculative trading on the platform significantly contributed to the “113.1% devaluation of the naira against USDT” since February 2023. Unconfirmed reports claimed two executives at a crypto company were arrested on Tuesday in a move to force the company to share its KYC data. Zakari Mijinyawa, a special adviser to Nigeria’s National Security Adviser, Malam Nuhu Ribadu, said he was unaware of any arrests and suggested that law enforcement agencies may have done them. Crypto exchanges are treading cautiously, three people who work in the industry told TechCabal. “The office asked us not to wear Binance t-shirts and caps and to not attend Binance-related events for now,” a Binance employee who asked not to be named told TechCabal, describing uncertainty and fear similar to last year when the Securities Exchange Commission announced that Binance was operating illegally in the country. At least five leading leaders in the crypto space declined to comment on this story, citing regulatory fears. “It is exactly as it was during the EndSARS protests in 2020,” an early-stage crypto investor in the country told TechCabal, adding that he has received warnings from peers to avoid attracting attention from law enforcement. *This is a developing story
Read MoreExclusive: Bolt launches in Botswana and waives driver commission for six months
Bolt, the Estonian ride-hailing company, is launching in Gaborone, the capital city of Botswana, and will compete in a market with only one other ride-hailing player: inDrive. Bolt will not charge its typical commission from drivers, usually between 15% and 20% of the ride fee, for six months as part of its rollout. The company said 100 drivers have been onboarded so far. Bolt’s launch in Botswana continues the company’s expansion in southern Africa. It has launched in Zambia, Zimbabwe, and Namibia in the last six months. Botswana is the 14th African country that Bolt has launched since first launching in South Africa in 2016. “We are thrilled to introduce our services in Botswana,” said Laurent Koerge, head of expansion at Bolt. “Our aim is to increase earnings for our drivers while fostering high demand through competitive pricing.” Bolt enters a Botswana ride-hailing market ripe for growth but also presents a challenging operating environment for ride-hailing platforms. inDrive was the first platform to test out the Botswana market, launching in the country five years ago. It remained the only platform in the country until now. Although it has blown up in popularity, perhaps showing the amount of demand for ride-hailing in the country, inDrive has faced numerous challenges, including allegations of driver misconduct as well as pushback from public transport operators. Bolt has features such as an SOS button, which allows riders and drivers to contact the police instantly; driver unmatching, which will allow a rider or driver never to be matched up with one another; and a “share my ride” option which will allow both parties to share real-time ride information. The platform will also require drivers to have all the requisite licenses from local regulators. Through these features, the company will be hoping to address the issues of safety and misconduct that have plagued ride-hailing in Botswana. In early 2023, Bolt announced its plan to invest over €500 million in the African market. One of its initiatives was to offer job opportunities to over 300,000 driver partners. The company operates in 45 countries globally, serving over 150 million customers and working with over 3 million drivers.
Read MoreCanal+ must make mandatory offer for MultiChoice shares, SA Takeover Panel rules
South Africa’s Takeover Regulation Panel (TRP) has ruled that Canal+, the French broadcaster, must now make a mandatory offer to MultiChoice’s ordinary shareholders after its stake in the company crossed the 35% threshold. According to the Companies Act of 2008 and JSE Listings Requirements, Canal+ must immediately make a bid for the outstanding MultiChoice shares it does not own. The mandatory offer will come three weeks after Canal+’s initial $1.7 billion bid for outstanding shares. Canal+ tests the waters with a bid to buy MultiChoice “The Board has concluded that the proposed offer price of R105 in cash significantly undervalues the Group and its future prospects,” the company told shareholders in a public statement rejecting the bid on February 1. However, the Takeover Regulation Panel ruled Wednesday that Multichoice’s public disclosure of the initial $1.7 billion offer was unlawful and issued a compliance notice against the broadcaster. MultiChoice will appeal that decision. Canal+ increased its focus on Africa in the past decade and has grown from just 1 million African subscribers in 2016 to 7.6 million in 2023. In July 2019, it bought ROK Studios, a prolific Nigerian film production company, from IrokoTV to increase its slate of original content offerings.
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👨🏿🚀TechCabal Daily – Kenya’s digital ID project is a go
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning If you haven’t yet, please move TC Daily to your main folder so you don’t miss any of our updates. On desktop, simply drag and drop this email from Promotions to Primary/Main, and if you’re on mobile, click on the menu button to to effect the move. Onto today’s newsletter. In today’s edition Kenya gets thumbs up for digital ID project Nigeria raises interest rates SA nabs first spam caller Bitcoin has reached $57,000. Here’s why The World Wide Web3 Opportunities Government Kenya lifts injunction to halt Maisha Namba digital ID rollout In 2018, Kenya launched Huduma Namba, a digital ID system known as the National Integrated Identity Management System (NIIMS) which cost KES 10 billion (over $72 million). However, the programme was discontinued by a Kenyan high court in January 2020 due to overall distrust from Kenyans as the state failed to fully explain the merits of the IDs, including privacy concerns. In Kenya’s second attempt, President William Ruto’s administration took another shot at digital IDs with the introduction of Maisha Namba in October 2023, to replace the failed Huduma Namba. The new system aimed to address the shortcomings of its predecessor and was supposed to launch in December 2023. However, its rollout was short-lived, facing another hurdle as the Kenyan high courts blocked it due to missing data protection assessments. Here’s what you need to know: Maisha Namba, which is also referred to as a Unique Personal Identifier, comes with advanced security features like iris and facial biometrics and fingerprint identification, similar to Huduma Namba. However, the new UPI aims to address previous concerns with Huduma Namba. The new Unique Personal Identifier (UPI) will act as a child’s school ID through primary and secondary education. By adulthood (18), it becomes their national ID, further integrating with essential services like health insurance, social security, driving license, and even death certificates. However, the rollout was blocked in December 2023. And now: Kenya’s high court has lifted the December injunction that halted the introduction of the new digital ID cards, and it is anticipated that the rollout will recommence. The lawsuit, originally initiated by a non-governmental organisation, Katiba Institute, has been transferred to the Constitutional Human Rights Division for further review. Nevertheless, civil society organisations have advised the government against viewing the removal of restrictions as approval to proceed with the production of Maisha Namba cards, despite reports of 60,000 Kenyans having already applied for them. 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. Economy CBN raises interest rates The devil works hard, but Nigeria’s Central Bank is always two steps ahead. Over the past two weeks, the CBN has sent out a roaster of new updates and regulations that are proving hard to keep up with. The apex bank has implemented sweeping reforms on Bureau De Change operators, eased foreign exchange rules, and sent BDC operators into hiding. On Monday, the CBN set a $500 limit on the purchase and sales of the dollar by cash. And yesterday, in fresh moves, it resumed selling dollars to eligible Bureau De Change operators (BDCs)—N1,301 per dollar—as part of its effort to pump more dollars into the FX market after former CBN governor Godwin Emefiele banned it. Under the new guidelines, BDCs can only sell foreign currency to customers at a maximum markup of 1% on top of the price they paid the CBN. If this works, it could align the country’s official exchange rates with its black market rates. A rate hike: Yesterday, in his first interest-setting meeting since assuming office in September, Yemi Cardoso, the CBN governor, also raised the interest rate to 22.75%, four percent higher than the previous rate. This move aims to combat inflation and stabilisse the Nigerian Naira. Higher interest rates typically incentivise foreign investment and attract capital inflows, potentially leading to a stronger Naira against the dollar. Cardoso talked tough in the media briefing in Abuja, Nigeria’s capital, stating that the CBN was actively working to arrest the naira’s slump. Nigeria’s inflation figures in January hit a 30-year high, rising to 29.9% and increasing the cost of living for its people. Experts, who previously predicted less than Cardosso’s increased interest rates, believe the bank is steering in the right direction to bring the naira under control with the newly announced measure. Zoom out: The latest moves by the CBN signal aggression in curbing the naira depreciation which has lost 70% of its value since President Bola Tinubu took office. Cardoso is also optimistic that the country will attract new foreign investors. This hope is evidenced in the recent movement of Nigeria’s dollar bonds, outperforming peers this month with returns of 2.6%. Regulation SA regulators nab first spam calling company Last week, we brought you news that South Africa’s Information regulator (IR) said it will begin cracking down on entities bombarding you with unwanted marketing calls. The regulator is wasting no time in dishing out punishments to offenders. The news: Yesterday, MyBroadband reported that the regulator issued its first enforcement notice to FR Ram Consulting, a training institution. FR Ram Consulting repeatedly sent marketing emails to a user who had unsubscribed from the mailing list on several occasions. In addition to breaking the IR’s latest regulation, the consulting group ran foul of other sections of the Protection of Personal Information Act (POPIA) including: directly marketing to individuals without obtaining their consent, persistently sending unsolicited marketing emails, and failing to cease communication even after individuals opted out. Tick Tock: FR Ram is at risk of a R10 million (~520,000) fine or a 10-year imprisonment if it fails to send evidence of its compliance with the new orders to the IR within a 90-day window. The regulator is also on the hunt for more offenders. It has identified 14 new
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March 2024 SRD SASSA grant payment dates
As South Africa gears up for another round of SRD SASSA grant payments in March 2024, beneficiaries can mark their calendars for the scheduled disbursement dates across various categories. Ensuring timely access to financial assistance remains a top priority for the South African Social Security Agency (SASSA), particularly in light of ongoing economic challenges and the need to support vulnerable individuals and families. Children’s March 2024 SRD SASSA grant payment On Thursday, 07 March 2024, Children’s Grants will be disbursed, offering vital support to families caring for vulnerable children. This assistance plays a pivotal role in safeguarding the well-being and development of young ones across South Africa. Older person’s March 2024 SRD SASSA grant payment Beneficiaries receiving Older Person’s Grants can expect their payments to be disbursed from Tuesday, March 5, 2024. This includes any grants linked to these accounts, providing crucial support to elderly individuals across the country. Disability grants Similarly, Disability Grants will be paid from Wednesday, March 6, 2024, encompassing any grants associated with these accounts. This timely distribution aims to alleviate financial burdens faced by individuals living with disabilities and ensure their access to essential resources. Important notice on SRD SASSA 2024 grants Looking ahead, SASSA recently announced through their X social media platform that beneficiaries can anticipate increases in certain categories of grants starting from April 2024. These adjustments reflect the government’s commitment to enhancing support for vulnerable communities and addressing economic disparities. For any inquiries or assistance regarding grant payments, beneficiaries are encouraged to contact SASSA through their toll-free helpline at 0800 60 10 11 or visit the official SASSA website for updates and news. Final thoughts on SASSA grant payment It’s important to note that beneficiaries need not rush to withdraw cash on the first day of payment. Once the funds are deposited into their accounts, they will remain available until needed, providing a measure of financial stability and security.
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