In The Spotlight
Despite an increase in its customer numbers, Airtel Africa faced a US$89mn deficit, attributed to a substantial tax obligation stemming from “exceptional derivative and foreign exchange loss”
If these extraordinary items were not considered, the company’s profit for the fiscal year ending 31 March, would have reached US$460mn.
The operator saw a 9% surge in its total subscribers, reaching 152.7 million, alongside a 17.8% rise in data users totaling 64.4 million, and a 20.8% hike in data consumption per user.
Investments in capital expenditures remained steady at US$737mn, falling short of projections due to postponed data center investments. The firm allocated US$152mn for renewing licenses and acquiring spectrum, with US$127mn dedicated to renewing its Nigerian 3G license.
Revenues saw a 5.3% decrease, dropping from US$5.2 billion to US$4.9bn, largely impacted by the devaluation of the Nigerian naira.
Olusegun Ogunsanya, CEO of Airtel Africa, stated that efforts to “de-risk our balance sheet and our capital allocation priorities has materially reduced the risks that the currency devaluation has had on our business.” He further mentioned that the company has taken steps to lessen US dollar debt and is concentrating on “reducing our exposure to currency volatility.”
Similarly, MTN reported a decline in profits due to the naira’s devaluation and has unveiled a plan to restore profitability to its local division.
Avanti Communications, a global provider of satellite technology across various orbits, has launched Low-Earth-Orbit (LEO) satellite connectivity services in South Africa
In collaboration with Q-KON, a prominent satellite engineering firm in southern Africa, Avanti aims to provide seamless LEO connectivity through Eutelsat OneWeb. This partnership addresses the unique connectivity challenges in the region and is poised to enhance business operations nationwide.
Strategic satellite connectivity expansion
The collaboration between Avanti and Q-KON responds to the growing demand for LEO connectivity in South Africa. By integrating LEO services into its existing offerings, Avanti expands its multi-orbit solution, enabling the provision of both LEO and GEO services to customers immediately.
By adopting a customer-centric approach, Avanti is strategically positioned to understand and fulfill the diverse needs of enterprise customers. This partnership underscores Avanti's commitment to offering a wider range of solutions, providing customers with increased choice, flexibility, and resilience in their connectivity options.
Kyle Whitehill, CEO, Avanti Communications, commented, “We are delighted to be partnering with Q-KON to provide LEO services to our customers across South Africa. This is a strategically significant move for us in multi-orbit and we hope that this is the first of many LEO partnerships globally.
“This hybrid model gives our customers in South Africa the assurance that all their unique problems can be solved through our services. This is particularly important for our enterprise customers in South Africa where the need for resilience is key.”
Dr Dawie de Wet, CEO of Q-KON, remarked, “We are pleased to support Avanti with our Eutelsat OneWeb customer-centric services, made possible by our proven Smart Satellite Service technologies developed for our Twoobii GEO portfolio. We also look forward to supporting Avanti with our end-to-end and turn-key project supply, delivery and support capabilities.”
Avanti has established a robust operational base in South Africa, boasting advanced infrastructure located in Johannesburg. With over a fifth of its workforce dedicated to operations in Africa, Avanti demonstrates a steadfast commitment to solidifying its foothold in the region. Avanti aims to elevate Africa to become its primary revenue driver within the next two to three years, showcasing its ambitious growth objectives within the continent.
Angola Cables and Camtel have joined forces to enhance digital and connectivity services across Cameroon and the broader West African region
Their collaborative efforts, aimed at cultivating business prospects in the area, are geared towards enhancing redundancy, network resilience, and the quality of service (QoS) on both national and international scales.
By leveraging Angola Cables' extensive backhaul network, which includes connections with key subsea cable systems such as WACS, SACS, and Monet, alongside Camtel's access to SAIL (South Atlantic Inter Link), the partnership will facilitate an expanded range of capacity offerings for enterprise clients, thereby improving traffic accessibility to both local and regional networks.
Camtel CEO Judith Yah Sunday Epse Achidi said, “Our strategic intent is to build on the robust backhaul connectivity of the Angola Cables network, and the existing interconnections we have in place with other submarine cables connecting the region and the world, to provide flexible and secure value added services for our clients and businesses.”
“For users, the partnership will help to secure connectivity, trade, boost economies, and help expand as well as grow businesses across the region,” said Fernando Fernandes, country manager of Angola Cables subsidiary TelCables Nigeria.
PAIX Data Centres, renowned for its data center solutions, is thrilled to form a pivotal joint venture with the Djibouti Sovereign Fund for the creation of a cutting-edge, neutral cloud and carrier data center in Djibouti
This venture marks a crucial step in the advancement of Africa’s digital framework, highlighting the dedication of both entities to drive innovation and development within the area.
Uniting PAIX Data Centres’ industry acumen with the Djibouti Sovereign Fund’s regional insight, this collaboration aims to provide premier data centre services, specifically designed for the distinct demands of Djibouti and the wider East African territory. The upcoming facility is poised to become a vital nexus for ISPs, cloud services, financial bodies, and corporations in need of dependable, expandable infrastructure to bolster their digital ventures.
PAIX Data Centres: Horn of Africa's hub
Djibouti’s strategic location, linked by ten submarine cables with additional ones being laid, positions the data centre as a crucial gateway for PAIX and its clientele to tap into the burgeoning markets of the region.
PAIX is set to acquire the property, structures, and data center apparatus. The center will boast approximately 50,000 square feet of usable area and a critical power capacity of up to 5MW. The initial phase is slated for launch in 2026.
The PAIX Djibouti facility will feature top-tier infrastructure, inclusive of sophisticated cooling technologies, fail-safe power supplies, and stringent security protocols, ensuring peak operation and dependability for essential applications and services. With its multi-megawatt capacity, the data center will address the varied requirements of clients from multiple sectors, equipping them with the tools and support necessary to spur innovation and propel business growth.
PAIX Data Centres, alongside the Djibouti Sovereign Fund, is steadfast in its commitment to furnish unparalleled data center solutions that cater to the dynamic needs of its customers, thereby fostering the economic expansion and well-being of Djibouti and the greater Horn of Africa region. PAIX Data Centres has established operations in Accra, Ghana, and Nairobi, Kenya.
In the recently released 'The State of the Industry Report on Mobile Money 2024' by the GSMA, PalmPay, a prominent pan-African fintech, was highlighted as a key driver of mobile money adoption in Nigeria
SES S.A. and Intelsat S.A. have entered into an agreement for SES to acquire Intelsat by purchasing 100% of the equity of Intelsat Holdings S.a.r.l. for a cash consideration of US$3.1bn (€2.8 billion) and certain contingent value rights
Dr Reda Helal and group managing director – Processing, Africa and co-head group processing, Network International, and Benjamin Mutimura, CEO, I&M Bank (Rwanda) Plc, has highlighted Rwanda’s journey towards financial inclusion through digital payments, mobile wallets, and strategic partnerships, aiming for full inclusion by 2024
In the heart of Africa, Rwanda’s financial inclusion efforts are gaining traction as the nation’s institutions, businesses, and consumers increasingly adopt digital payment methods. These technological advancements are essential in extending financial services to a broader audience, offering the convenience of cashless transactions, and facilitating swift and secure exchanges.
Rwanda: Pioneering digital finance hub in Africa
Rwanda stands out as a fertile ground for digital finance, with a youthful demographic—69% under the age of 30—and one of the highest population densities on the continent. The country boasts an impressive 87% mobile penetration rate, and the mobile payment sector saw a staggering 450% growth during the pandemic. In 2022 alone, mobile payment channels processed 310 million transactions, with a significant 41% increase in transaction value reported in November, from RWF 4.7 trillion (US$3.6bn) to RWF 6.6 trillion (US$5bn). Rwanda is ambitiously working towards complete financial inclusion by 2024.
The nation’s strategic plans, Vision 2050 and the National Strategy for Transformation 2017–2024, aim to position Rwanda as a central hub for financial services within Africa. The burgeoning fintech industry is key to this vision, promoting the shift towards digital payments and aiding in the quest for financial inclusion.
A recent study by Access to Finance Rwanda revealed a critical challenge: despite the financial sector’s rich data production, only a select few are leveraging this data effectively. This lack of a data-centric approach is a significant obstacle, as it prevents a deeper understanding of customer profiles and needs, optimisation of business operations, and the ability to forecast outcomes.
In Rwanda’s dynamic market, contactless payments and mobile wallets are becoming increasingly important. They offer consumers numerous advantages, including speed, convenience, and enhanced security.
The strategic alliance between Network International and I&M Bank is set to strengthen the bank’s digital-first strategy and its leadership in Rwanda’s market. This partnership will introduce an array of payment products and services, such as card hosting and processing, backed by strong security measures and an advanced API gateway. These offerings will enrich customer experiences with data and analytics, finely-tuned loyalty programs, and tokenisation, among other innovations.
As the global trend shifts towards contactless payments and digital wallets, Rwanda is witnessing the transformative impact of services like tokenisation and data analytics on commerce and payment systems. These innovations are integrating more citizens into the formal financial framework, paving the way for Rwanda to emerge as a significant financial services hub in the region, with banking standards that match international benchmarks.
Embracing cutting-edge technology in digital banking is crucial for realising genuine financial inclusion. The World Bank’s Rwanda Economic Update underscores the potential for financial services to enhance financial inclusion through innovation. While challenges such as the digital divide, infrastructural shortcomings, and financial literacy gaps remain, the report advises policymakers to strengthen regulatory frameworks, upgrade financial and digital infrastructure, and increase government support to nurture a digital-friendly ecosystem.
As Rwanda strides towards its 2024 financial inclusion goal, the dissemination of knowledge will be instrumental in establishing a digital payment culture that is inclusive and robust.
Africa Data Centres, a division of the Cassava Technologies group, has announced the commencement of construction for a solar farm in the Free State in partnership with DPA Southern Africa
Nigeria's central bank has announced its intention to implement a levy on domestic electronic money transfers aimed at funding cybersecurity initiatives