Veteran investor Olumide Soyombo announces ‘Vantage,’ a memoir of his business journey
Olumide Soyombo, the co-founder of Bluechip Technologies and founder of Voltron Capital, is releasing his business memoir, “Vantage,” this week. It follows his evolution from teenage tech exploration to entrepreneurship and investing. In February 2021, the tech publication Benjamin Dada published an exclusive interview with Olumide Soyombo, co-founder of Bluechip Technologies and one of Nigeria’s most prolific investors. While Soyombo is well-known in Nigeria’s tech circles, he may be unknown to the average Nigerian. Rarely in the press, his interview with Benjamin Dada was the first time he publicly spoke about the scale of his investments. With 26 startups in his portfolio, Soyombo invested early in some of Nigeria’s notable businesses, including Paystack and PiggyVest. His experience and success mean that he gets a lot of questions about his life, his investment thinking, and his pioneering role in the Nigerian tech scene. To those who have always had questions, Olumide Soyombo has answers. Earlier today, he confirmed the imminent release of his business memoir, “Vantage.” The new book is a firsthand account of his experiences, from his early fascination with personal computers to his present-day role as an entrepreneur and investor. “Vantage” will provide a window into the challenges, triumphs, and lessons that have shaped his journey and Africa’s tech ecosystem. Soyombo says in the introduction, “Africa is now the land of unicorns, but before unicorns, there were numerous stories that captured the power and pioneering spirit of the continent’s techpreneurs.” Read also: Olumide Soyombo: The Journey from startup founder to investment mogul Much-needed knowledge sharing in an otherwise secretive ecosystem While Nigeria is one of the most prominent tech ecosystems on the continent, there’s a sense that its leaders guard the stories of the industry closely. In fairness, a seeming unwillingness to share origin stories is a charge often levelled against Nigeria’s business leaders. Lately, a few business leaders have tried to beat those charges. “Leaving the Tarmac: buying a Bank in Africa,” a 2020 book by Aigboje Aig-Imoukhuede, a veteran banker and former CEO of Access Bank shared in part how Aig-Imoukhuede and Herbert Wigwe bought Access Bank in 2002. Austin Avuru’s “A Safe Pair of Hands,” published in 2023, tells the story of the Seplat co-founder’s journey from Delta state to the pinnacle of corporate Nigeria. Soyombo’s “Vantage” will be a welcome addition to the broader literature from corporate Nigeria. According to Maya Horgan Famodu, Founder of Ingressive Capital, Vantage is a “practical, no-nonsense guidance and humble chronology of adventure after adventure will make you laugh, reflect, and inevitably learn.”
Read MoreAirtel Uganda will sell 20% stake in an IPO
Airtel Africa has announced its plans to list on the Uganda Securities Exchange with 8,000,000,000 worth of shares According to a statement published on the Nigerian Exchange Group (NGX), Airtel Africa has announced plans to list shares on the Uganda Securities Exchange. It will do this through its wholly owned subsidiary in Uganda, Airtel Uganda Limited. The telco intends to proceed with an IPO of 8,000,000,000 (8bn) ordinary shares which represent 20% of Airtel Uganda Limited. Under article 16 of Uganda’s National Telecom Operator rules, 20% is the minimum requirement for listing on the stock exchange. Similarly, Airtel Uganda’s principal regulator, the Uganda Communications Commission has set a deadline of 16 December 2023 for meeting this requirement to list. “The offer is expected to result in meaningful local ownership of Airtel Uganda Limited, with preference to be given to Ugandan investors, and to contribute to the development of the capital markets in Uganda,” a statement from the telco read. Airtel would be listing these shares by way of an offer for the sale of ordinary shares by Bharti Airtel Uganda Holdings B.V., ultimately, a wholly owned subsidiary of Airtel Africa. Also, it will be offered to retail investors via Airtel Money’s platform, in addition to traditional channels, in an effort to increase retail participation. All of these moves are subject to regulatory approvals. “ Absa Bank Uganda Limited have been appointed as Lead Transaction Advisor, Crested Capital as Lead Sponsoring Broker, Katende Ssempebwa and Company Advocates as the Legal Advisor, and EY as the Reporting Accountant. A fight to the finish Airtel’s move to deepen its reach in Uganda is a means to compete with fellow telecom giant, MTN. On, July 28, MTN offered 5G services in Uganda, while Airtel followed days later. In Nigeria, MTN Nigeria congratulated Airtel on its 5G launch via a cryptic post on social media. Coming from a shoddy Q1 performance in Nigeria, Airtel would be looking at other markets to deepen its roots.
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TechCabal Daily – DStv has no multi choice
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy pre-Friday Our State of Tech in Africa, Q2 2023 report is finally out! Venture funding in Q2 reached an impressive $916 million, almost crossing the billion-dollar mark. Fintech is also no longer leading the pack, as energy-focused startups took the lead with $486.9 million in funding, representing 53% of the total funding. Kenyan startups outperformed the Big 4, securing $462.4 million in funding. Download the report here to explore all the fascinating details! In today’s edition MultiChoice exits Malawi Airtel Kenya to expand network with $150 million eTranzact records $1.3 million profit in H1 2023 USA’s regulator frowns at Vodacom-Vumatel deal The World Wide Web3 Event: The Moonshot Conference Opportunities Streaming Multichoice terminates DStv service in Malawi Multichoice is pulling its DStv service from Malawi. Why? Well, the country isn’t giving it any choice.The Malawi Communications Regulatory Authority (MACRA) secured a temporary court order from the nation’s High Court. This order prevents Multichoice Malawi from altering or adjusting DStv tariffs. On August 8, the High Court issued an additional directive, compelling Multichoice to adhere to the injunction, leading the broadcaster to terminate its DStv offering in Malawi. Image source: YungNollywood MACRA obtained an injunction arguing that Multichoice, which does not directly provide DStv services to the public, does not have the authority to set or change tariffs for the service in the country. In response to the court order, Multichoice considers the situation unfavourable for its operations, and the consequence of non-compliance, which includes imprisonment for the company’s staff, led to the decision to exit the market. ICYMI: In July, the company implemented its third price increase for DStv and GOtv services in Kenya, which became effective on August 1. The rationale behind this latest price adjustment, according to the company, is attributed to inflation and rising costs. 2023 hasn’t exactly been the best year for the broadcasting company. In June this year, Multichoice reportedly lost over 100,000 subscribers, in South Africa. A loss it attributes to competition from streaming platforms like Netflix. 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. Telecoms Airtel Kenya to spend $150 million on network expansion Image source: DMForCredit, Seriously Yesterday, Kenyan business publication Business Daily reported that Airtel Kenya plans to invest more than $150 million (KSh21.5 billion) over the next three years to expand its network coverage. The telecom will achieve this by adding 649 new network sites across Kenya across the country. What’s happening? Airtel had, in June, spelt out the plan to advance its network infrastructure in renewed aggression to tap into a larger part of the market share, saying at the time that it would put up a total of 349 network sites before the close of the year. Since its launch in Kenya, the telecom has invested more than KSh143.3 billion ($1 billion) in the country, with the majority of these investments occurring in the last three years. Additionally, in June 2023, Airtel Kenya announced plans to add 349 new sites to expand its network’s coverage by the end of the year and meet the nation’s increasing demand for data services. Zoom out: Airtel currently has 26.7% of the market share in Kenya, and its network infrastructure currently spans over 3,200 sites covering 89%of the country across all 47 counties. The telecom also became the second operator in Kenya to roll out the super-fast 5G technology after Safaricom unveiled the service last year. 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. Fintech eTranzact records $1.3 million profit in H1 2023 eTranzact executives during its 18th Annual General Meeting Nigerian payments service provider, eTranzact, has released its financial report for H1 2023. The company recorded a profit of ₦1.01 billion ($1.3 million) in H1 of 2023, representing a 149% increase compared to the previous year. A strong financial performance: The company’s profit for H1 of 2023 exceeded the earnings forecast it had made for the third quarter of 2023, which was projected to be ₦582 million ($8.22 million). Additionally, the company generated ₦17.37 billion ($22.6 million) in revenue for H1 2023. Notably, this revenue figure surpasses the net revenue projection of ₦9.13 billion ($11.9 million) that eTranzact had anticipated for September 30, 2023. ICYMI: In July 2023, eTranzact announced that it made a profit of ₦1.17 billion ($1.5 million) after taxes in 2022, and processed over ₦50 trillion ($63 billion) worth of total transactions, primarily through SwitchIT, its switching services. Its current profit of ₦1.01 billion ($1.3 million) demonstrates the wide adoption of its fintech services in Nigeria. Zoom out: In H1 2023, Access Bank held the largest share in the company, with a stake of 37.54%, which marks an increase from its 23.80% stake in H1 2022. This positions it ahead of eTranzact, which now possesses a 22.98% stake in H1 2023, down from the 31.86% it held in H1 2022. Markets SA’s regulator frowns at Vodacom-Vumatel deal Image source: YungNollywood South Africa’s anti-monopoly watchdog, the SA Competition Commission, has kicked against the proposed fibre merger between Vodacom and Community Investment Venture Holdings. This comes after the companies submitted their R13.2-billion($695 million) deal to the regulator at the end of 2021. The watchdog stated that the deal could mean lessened competition and that the conditions offered by both companies “do not fully address the resultant harm to competition.” What’s happening? In November last year, Vodacom said it would pay R6 billion($337.5 million) in cash and certain fibre assets valued at R4.2 billion($236 million) for a 30% stake in a newly formed
Read MoreWorldcoin illegally collected biometric data, according to the Kenyan government
Kenya’s ICT and digital economy cabinet secretary, Eliud Owalo, was questioned today about Worldcoin’s operations in Kenya. According to Owalo, the firm collected iris data illegally, and there are plans to preserve that data before an assesment is made about the case. Worldcoin‘s woes in Kenya are far from over. Today, two cabinet ministers were questioned by members of parliament about how Worldcoin set up shop locally, how it secured the required licenses for operation, and what will happen to the facial and iris data of nearly 400,000 Kenyans in possession of Tools for Humanity, the German organisation behind Worldcoin. These questions were answered with varying levels of accuracy. While the responses from the cabinet secretary for ICT and the digital economy, Eliud Owalo, and his colleague in the interior ministry, Kithure Kindiki, are far from exhaustive, the individuals will be subjected to another series of questioning in a week to provide more clarity on the entire situation. Worldcoin’s data controller certificate has its limitations According to Owalo, Worldcoin was registered as a data controller in Kenya by the Office of the Data Protection Commissioner (ODPC). However, the license did not imply that Worldcoin had free rein to process user data in the country; the ODPC issued the certificate merely to confirm that Worldcoin was recognised in Kenya and nothing more. “The certificate simply signifies that an entity is known to the ODPC and that it processes personal data of persons located in Kenya. Further, it does not amount to certification of the processing activities of the entity or serve as an endorsement from the ODPC of an entity’s compliance with the provisions of the Data Protection Act or any other laws, including but not limited to the constitution of Kenya 2010,” Owalo explained. The cabinet secretary further clarified that the ODPC issued the certificate to Worldcoin after it had produced the necessary documents “pursuant to the registration regulations”. Who authorised the collection of biometric data? When posed with this question, Owalo did not provide a comprehensive answer, instead he provided snippets from existing data protection laws. For instance, he reminded parliament that Worldcoin had been registered as a data controller in April 2023. “An entity required to process personal data is required to identify itself with the ODPC by registering with the office. And pursuant to the Data Protection Act 2019, an entity should therefore make an application for registration as a data controller where it determines the purpose and means of handling personal data,” said Owalo. The CS further elaborated on the process by which a data processor applies the ODPC, particularly in cases where the organisation manages data for a data controller as per a contractual obligation. Certain companies can register as both data controllers and data processors. Owalo emphasised that this certificate indicated Worldcoin’s adherence to specific sections of the Data Protection Act 2019, specifically for registration. “The license does not in any manner endorse an entity’s compliance with the Data Protection Act or its subsidiary regulations, nor is it a valid license for an organisation to operate In Kenya,” he added. To this end, it is clear that Worldcoin was only issued a data controller certificate that did not grant any authority to collect iris data from Kenyans. However, the company harvested this crucial biometric information, after which the affected Kenyans received slightly over $54 worth of World tokens. “There is a divergence between mere registration and operationalisation in conformity to the law. Registration does not imply that a company operating in Kenya has been given authority to behave in a manner that it deems appropriate,” Owalo clarified. What will happen to the already collected biometric data? According to Owalo, in May this year, the Kenyan government instructed Worldcoin to cease collecting iris data. The directive was followed by a crackdown in August by multiple agencies, including the ODPC and the Communications Authority of Kenya (CA), to halt operations in the country after the issue gained widespread media coverage. The Kenyan government has sought preservation orders from the courts to facilitate the completion of the ongoing investigation into Worldcoin’s activities. Several agencies are conducting the assessment. This will ensure that Worldcoin is obligated to preserve all personal data of Kenyans collected during the operation. The results of this investigation will be presented in parliament next week.
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Entering Tech #37: From interns to influencers, internship tales worth telling
Behind every Nigerian tech influencer is an internship period. 09 || August || 2023 View in Browser Brought to you by Issue #37 From interns to influencers Share this newsletter Greetings ET people IIn this edition of Entering Tech, we’re diving into an exciting and rapidly evolving realm of the professional world: internships This is a two-part piece written by Oluwatoyosi Adebusuyi, a storyteller at Reneé PR, a Nigerian tech PR agency. It’ll explore the myriad ways in which internships in the tech sector can propel you towards success. We also delve into inspiring stories of individuals who have leveraged tech internships to unlock their potential and pave the way for their future endeavours. Whether you’re a student aiming to gain practical skills or a career changer exploring new avenues, this edition offers insights, guidance, and a deeper understanding of the transformative power of internships by Pamela Tetteh and Timi Odueso. Tech trivia Some tech trivia to get the brain juices flowing. Which major tech company is known for its internship programme called “The Summer of Code”? Which famous tech entrepreneur started as an intern at Hewlett-Packard (HP) and later co-founded a billion-dollar company? How internships work Centuries ago, what we now know as internships were called apprenticeships, informal systems of learning designed to help young enthusiasts develop skills under trade masters’ guidance. Today, internships hold even more significance, especially for recent graduates, entry-level professionals and people looking to switch careers. Internships present invaluable opportunities to get hands-on experience, making them a popular choice for people venturing or transitioning into new careers. Today, the tech industry is a major attraction for professionals across various fields, with 89% of career changers lured by better financial prospects, as reported by CNBC. Internships provide these individuals with vital skills to elevate their careers, seize more promising opportunities and ultimately increase their income. While certifications and degrees are valuable for launching new careers in tech, real-world experience is vital for career growth. In Nigeria’s thriving tech industry, many talents kick-started their careers through internships, achieving remarkable feats and influencing the industry’s trajectory. In this edition of Entering Tech, we explore the awe-inspiring success stories of Nigerian tech professionals who began their journeys as interns and have now achieved remarkable heights in their careers. Through their remarkable experiences, we have gained profound insights into the impact internships have on Nigeria’s tech industry, underscoring how these opportunities can turn ambitious dreams into reality. How internships have helped techies Unemployment poses a big challenge in Nigeria, as an estimated 1.8 million individuals join the job market annually, competing for a limited number of jobs. A report by Stears Insight highlights a concerning trend where uneducated Nigerians stand a higher chance of finding employment than their educated counterparts. With Nigerian universities churning out approximately 500,000 graduates each year, the demand for practical experience further complicates entry into the workforce. Olabinjo Adeniran However, amidst these challenges, opportunities abound for those who approach the job market strategically. Olabinjo Adeniran, a growth and product marketing professional, experienced his breakthrough in the tech industry during his first year at the University. This was made possible through a social media internship opportunity with Mark Essien, founder/CEO of Hotels.ng. Prior to this, Binjo managed a consumer tech blog’s social media for two years, gaining a substantial following. Impressed by his performance, Mark believed Binjo could replicate this success at Hotels.ng. According to Adeniran, he carefully prepared for the interview with Essien to maximise his chances of getting the job. “Prior to my interview with Mark, I conducted extensive research, arriving with well-prepared notes and ideas for their social media strategy,” he said. Similarly, Jesimiel Williams, a multi-disciplinary designer, refused to be another unemployed Nigerian graduate. While in secondary school, he acquired basic programming skills from a website designer his mother worked with. Upon gaining admission into Covenant University to study Mass Communications, he secured an internship at Lara.ng, an AI tool designed for Lagosians to find the fastest way to reach their destinations. By the time he graduated, he had accumulated over three years of valuable work experience. Jesimiel Williams Ajiri Omafokpe, a senior product designer at Kora is another remarkable example of people who monetised their passion while in the University. Despite her initial doubts about turning her Power point design skills into a design career, an internship opportunity with a designer in her third year changed everything and led her to pursue design as a career. Sometimes, all it takes is one internship In June 2023, Nigeria was ranked first in the continent and second globally with the most hardworking workers. The average employee in Nigeria spends forty hours a week in a 9-5 job, and those in informal work settings may work up to fifty to sixty hours weekly. Despite these high numbers, a significant portion of the country’s population remains unemployed. In April 2023, the unemployment rate reached 41%, intensifying the competition for limited job openings. In this tough environment, people embrace the survival-of-the-fittest mindset by refining their skills to stand out in the job market. Internships are instrumental in this pursuit, as they offer practical experience that enhances employability. Engaging in an internship can lead to three potential outcomes: discovering a sense of fulfilment and choosing to pursue that career path, realising that a particular direction is not suitable for you, or finding a new passion. Regardless of the result, the experience provides clarity and insights that contribute to personal and professional growth. During his internship at Lara.ng, Jesimiel had the opportunity to work on multiple projects, exploring different areas such as design, data, marketing, product management, and content writing. As he delved into these areas, he discovered that his true calling lay in design, creative writing, and marketing, skills that he now wields in a comprehensive role as the Creative Director at Stutern. Hecredits his internship at Lara.ng for shaping his career trajectory. He said, “In my first month, I was torn between screenwriting, digital art, merchandise,
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Meet Kuda Musasiwa and the African AI bots, DanAI.chat and ZivAi
Kuda Musasiwa’s desire to create an authentic, homegrown African AI is putting the Zimbabwean diaspora and the local computing community on the map. Did you know that aliens landed in Zimbabwe in 1994? Check out the Ariel School incident to find out about the most compelling close extraterrestrial encounter on the continent. But just a few years before the offworld visitors came to his country, a young expatriate Zimbo was feeling a little like an alien himself. That was Kuda Musasiwa, who would later become the creator of the first pan-African AI bot. In the late 80’s, Musasiwa was bundled up by his computer scientist father and taken off to Australia where his father was studying. Musasiwa ended up in a local Catholic school and remembers quite well the feeling of being the “only black kid in an all-white environment.” At one point, the parents of the other children protested Kuda’s attending swimming lessons with their kids. He ended up splashing around in the pool on his own, until Jody, a red-headed classmate, jumped in the water and broke the apartheid. “I always default to that memory because I saw the power of one person defying the rules. She was my Rosa Parks!” Musasiwa said. It was in Australia that Musasiwa would have his eureka moment after switching on his father’s Amstrad, learning prompts, MS DOS, and running GW BASIC. Then came a Macintosh, on which he programmed his own versions of Pong and learned to write and debug code by trying and doing. Like his father had done in Australia, he would later earn an MSc in Computer Science–at City, University of London. Before creating ZivAi, Musasiwa tried out quite a few things. His first foray into fostering a community to unite Zimbabweans across the diaspora was with his website, blaz.co.uk. Musasiwa regrets never taking advantage of how much this platform grew. “This really grew exponentially. We used to share the files we would talk about in the forums… sadly we never monetized it.” After the dotcom bubble burst, Musasiwa and his peers created an HTML program called Checkmate, which could indicate when their contacts were online on AOL, MSN messenger, or ICQ, and more. In all his forays into the digital world, Musasiwa never lost sight of his major focus: the importance of the Zimbabwean diaspora and the local computing community. Twenty years and many startup projects (including a fresh food delivery company, Fresh In A Box) later, Musasiwa found himself confronting a situation that would eventually stimulate the birth of ZivAi. The original inspiration came from a desire to create an authentic, homegrown African AI. Young techies and digital learners in Zimbabwe have long suffered from a lack of access to basic payment channels like PayPal and Stripe; likewise, other newer tools of interest like ChatGPT often elude them. Musasiwa views this lack of access as unfair. As a permanent resident of the United Kingdom, Musasiwa had realized years before that he could use his own access to payment channels as a means to bridge the gap for younger techies back in his home country. The vision of expanding access to information is captured in the name ZivAi, which is inspired by Musasiwa’s brother’s name, which means ‘Acquire Knowledge’ in Shona. Musasiwa therefore created ZivAi to meet specific needs in Zimbabwe. Despite the impressive skills of the Zimbabwean youth, the economic conditions are such that this potential is in danger of being smothered. A hyperinflationary environment, sanctions and other barriers all mean that even funds from Zimbabweans in the diaspora struggle to make their way into the hands of those who need them–and if they do, remittance companies apply especially punishing costs. Within this context, setting up efficient payment channels and creating a chatbot to assist commercial vendors made a great deal of sense to Musasiwa. Though ZivAi incorporates an image generator and plenty of flamboyant UX, these are its major priorities. The ZivAi and the Danai.chat (pan-African) models are cobbled together from smaller open-source models and the “work of the giants,” in Musasiwa’s words. The ZivAi team also recently began to use Azure Open Source. Most functionality is in English and French, but according to Musasiwa, that will change. “We want to build sovereignty bit-by-bit,” he explained. At present, the off-chat layer is being laid down, and the question that the team asks through the process is: ‘Is this good enough for a child in a rural area to be able to converse with and do things with?’ The layer should be able to explain enough to local youngsters in their own languages to support them in doing their homework, at the very least, says the founder This underscores the tricky process of feeding the LLM African languages, first in terms of queries and responses, and hopefully later in much larger chunks of natural language. Facebook’s Meta has stored up a vast database of Shona and other languages, which it uses for AI-powered translation. That forms an excellent possibility to train the ZivAi model to speak naturally in African tongues, which will mean negotiating access to the datasets. As exciting as it sounds, Musasiwa says that his team “knows damn well that we are not important enough to get the attention of the Big Boys. We will spearhead everything ourselves.” Interestingly, ZivAi is not Kuda’s first iteration of an AI: Shandu and Lucy (the latter named after the ‘First Human’ which remains unearthed in Africa) were earlier bots that laid the groundwork, and ultimately led to the creation of the AfricAi Project. Shandu (which means ‘Change’ in Shona) was a chatbot created for a political campaign, while Lucy was applied as customer service support. Both were based on open-source models available in 2018. Shandu’s candidate was unsuccessful in the elections, but during the pandemic, Lucy came in handy when Fresh In A Box–the fresh produce delivery startup Musasiwa co-founded with his wife–faced thousands of queries. But neither Lucy nor Shandu had capacities like the LLMs
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7 conditions to apply for Twitter X monetisation 2023
The internet has been in a buzz since Elon Musk’s Twitter X executed its broadened creator monetisation program by including a share of ad revenue generated from ads displayed in response to their posts. As part of its initiative to enhance user earnings on the platform, the company has confirmed plans to expand the program later this month, inviting all eligible creators to apply. Here, we discuss conditions/how to apply for this Twitter monetisation. Eligibility to apply for Twitter monetisation Those who can enjoy Twitter monetisation include those who hit the following 4 conditions: Twitter Blue subscribers or Verified organisations. Accounts with up to 500 followers Those with a tweet impression count exceeding 5 million per month over the past three months Creators who meet the Creator Monetisation Standards through human evaluation. With the launch of the Creator Ads Revenue Sharing Program, artists are inclined to encourage interactions with their tweets, ideally fostering meaningful discussions. However, there have been concerns about the platform becoming a place that breeds more toxicity and vulgarity than before as people start to quest for engagement and impressions. Other key points to note as you apply for Twitter monetisation While it’s exciting to start creating any sort of content that can generate engagement and in return provide you income, Twitter X has some terms and conditions you may want to know. See the following three: While Twitter has historically displayed leniency towards explicit content, it strictly prohibits the commercialisation of sexual material under its content monetisation guidelines. The platform explicitly discourages pyramid schemes and get-rich-quick endeavours, as well as any content endorsing violence, criminal activities, gambling, or substance abuse. Moreover, creators attempting to profit from copyrighted content they do not own will be excluded from participation in the ad revenue-sharing program. Final thoughts In today’s dynamic digital landscape, the symbiotic relationship between content creation and revenue rewards on social media stands as a testament to the evolving power of user-generated content. As content creators continue to shape online narratives and captivate global audiences, innovative revenue reward systems offer not only financial incentives but also recognition for their creative endeavours. With platforms like Twitter continually refining these models, the future holds exciting possibilities for content creators to not only thrive but also revolutionise the way we engage with digital content, fostering a community where creativity is celebrated and rewarded in equal measure.
Read MoreSA competition regulator says no to Vodacom’s acquisition of fibre operator Maziv
South Africa’s competition regulator has rejected Vodacom’s acquisition of Maziv, a holding company which owns Dark Fibre Africa, the country’s second-largest fibre network operator. The competition commission of South Africa has recommended against Vodacom’s acquisition of Maziv, a holding company whose assets include fibre network operators Dark Fibre Africa (DFA) and Vumatel. “The Commission is of the view that the proposed transaction is likely to substantially prevent or lessen competition in several markets and that the conditions offered do not fully address the resultant harm to competition,” the regulator said in a statement. Additionally, the commission stated that the public interest commitments provided by the merger parties did not outweigh the competition concerns. Areas of concern The commission outlined that the transaction is likely to affect both horizontal and vertical competitiveness in the market. From a horizontal perspective, the commission’s investigation shows that 5G Fixed Wireless Access (FWA) and fibre compete in the same relevant market and that consumers stand to benefit from increasing competitive rivalry between FWA and fibre. “The proposed merger will result in the loss of direct competition between Vodacom and Maziv in the areas where both Vodacom and Maziv have deployed fibre. The Commission’s investigation has shown that fibre players tend to reduce prices in areas where more than one fibre network provider has deployed fibre. This price competition is lost with the merger,” it stated. Another consideration was the pre-merger plans of both Vodacom and Maziv. Vodacom, through its spectrum allocation obligations, and Maziv, through its planned Vumatel roll-out plans, are both investing in infrastructure rollout to target underserved low-income and more rural consumers. According to the commission, a merger transaction is likely to reduce this competitive rivalry and deprive low-income consumers of the benefits that fixed competition exerts on mobile products as currently enjoyed by wealthier and urban consumers in South Africa. From a vertical perspective, the regulator cited concerns about the fact that mobile network operators (MNOs) rely on Maziv to a varying but significant degree for fibre backhaul and metropolitan connectivity services to provide mobile retail services. The merger would create the ability and (increased) incentive to partially foreclose or otherwise disadvantage rival MNOs to Vodacom. In its conclusion, the regulator stated that there are no significant benefits arising from the proposed merger that are not already independently planned prior to the merger or not already in place. Additionally, the merger was deemed likely to further reinforce the incentives for self-preferencing and discriminatory behaviour. What is interesting is that in November last year, South Africa’s communications regulator greenlighted Vodacom’s acquisition of DFA’s operating licenses by Vodacom. In November 2021, Vodacom announced that it would shell out R6 billion ($337.5 million) in cash, and fibre assets valued at R4 billion for a 30% stake in Maziv, which held DFA’s fibre assets. The commission’s decision is likely to derail Vodacom’s plans to have a significant headstart in the battle for fibre dominance, which looked to be on the right track after MTN’s acquisition of Telkom fell through. A strong fibre network will ensure that Vodacom will be able to support its own push for 5G, as well as lease out its network to other operators for their 5G services.
Read MoreGhana’s inflation hits 43% due to rising food costs
Driven by food prices, Ghana’s inflation rose to 43.1% in July from 42.5% in June—a four-month high. The increase may force the central bank to increase the interest rates again to help the country’s struggling economy. Ghana’s inflation rate hit a four-month high of 43.1% in July, as the country grapples with a debt-induced economic crisis. Per Bloomberg, the increase was driven by food prices, according to a government representative. Ghana’s food inflation rose to 55% from 54.2% in June. On the other hand, non-food price growth grew from 33.4% to 33.8% Bloomberg reports that the uptick may force the Ghanaian government to increase interest rates again. Last month, Ghana’s central bank hiked key interest rates to 30% in response to soaring inflation which stood at 42.5%. Central Bank governor Ernest Addison said at the time that policy tightening will continue until the desired inflation level is achieved. The decision to raise interest rates in the nation increases the cost of borrowing money and is intended to reduce consumer spending. Ghana is currently battling its worst financial crisis in decades, with public debt almost as large as its gross domestic product (GDP), according to Financial Times. In May, the International Monetary Fund (IMF) granted Ghana a $3 billion bailout to aid its economic recovery from the debt crisis. But Ghana isn’t the only West African country dealing with an economic crisis. Driven by a rise in food prices, Nigeria’s headline inflation hit a seven-year high of 22.79% in July. According to the data from the National Bureau of Statistics (NBS), food inflation was up by 25.25% on a year-on-year basis in June. Nigeria’s Central Bank had to raise the benchmark lending rate by 25 basis points to 18.75 percent, from 18.5 percent, in an aggressive push to contain inflationary pressure.
Read MoreeTranzact declares ₦1.01 billion profit in H1 2023
eTranzact International Plc has released its financial report for the half year 2023. The payments provider recorded N1.01 billion in profit, a 149% increase from the previous year. Nigerian payments provider, eTranzact International Plc profits rose to ₦1.01 billion in the first half of 2023—representing a 149% increase compared to the previous year. eTranzact’s profit for the half year surpassed its earnings forecast for the third quarter of 2023, which is projected at ₦582 million. Similarly, it earned ₦17.37 billion as its revenue for H1 2023. This figure is higher than the net revenue of ₦9.13 billion it forecast for September 30, 2023. President Bola Ahmed’s moves to eliminate Nigeria’s multiple exchange rate windows resulted in record losses in half year 2023 results for several companies. Airtel Nigeria similarly suffered a $151m loss in its Q1 2023 results. The telco said it would continue to invest in the country to enable it to capture the growth opportunity. The total value of total transactions eTranzact processed in 2022 is pegged at over ₦50 trillion. This was made possible through its switching services, SwitchIT. The company also said it ensured a 99% success rate and uptime across the various service offerings during 2022. Its current profit of ₦1.01 billion demonstrates the wide adoption of its fintech services in Nigeria. Currently, Access Bank is the biggest shareholder in the firm, owning a 37.54% stake in H1 2023 from a 23.80% stake it owned in H1 2022. It has surpassed eTranzact who now owns 22.98% in H1 2023, from a 31.86%, owned in H1 2022. Accelerex Holding is the third largest shareholder with 11.15%. Two industry watchers who spoke about this phenomenon said Access Bank’s move is in line with the lender’s aggressive expansion plan across the African continent. Last month, it acquired the subsidiaries of Standard Chartered Bank. In that statement, Access Bank stressed that the acquisition was “a strategic transaction” that represents its journey in serving as a gateway for payments in Africa and the world. The bank did not provide any update on the shareholding status.
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