HS Towers and MTN Group extend Nigerian tower leases to 2032, addressing governance issues and securing their partnership for a decade. (Image source: Adobe Stock)

Following last week's announcement that IHS Holding Limited and MTN Group have renewed and extended their communications infrastructure agreements in Nigeria

The companies revealed that they will now address previously raised governance issues constructively, with their commercial relationship solidified for the next decade.

On August 7, 2024, IHS Towers and MTN Group agreed to extend their Master Lease Agreements for Nigerian towers through December 2032. The renewed contracts feature revised financial terms aimed at achieving a more balanced split between local and foreign currencies. This renewal completes the extension of approximately 26,000 MTN tenancies on IHS Towers’ infrastructure across six African countries: Nigeria, Rwanda, Côte d’Ivoire, Cameroon, Zambia, and South Africa.

Sustainable network investment focus

MTN Group holds around 26% of IHS Towers, a stake established before the tower company's listing on the New York Stock Exchange in 2021.

MTN Group president and CEO Ralph Mupita said, “The renewal of the various contracts across our markets into the next decade put MTN operations in the respective markets onto a more sustainable footing. We remain focused on ensuring our networks are well invested, have high availability and have the headroom to meet the growing and structural demand for data going into the future. These renewals are key to those priorities. We look forward to working constructively with IHS on the outstanding governance issues now that commercial arrangements have been concluded.”

Sam Darwish, chairman & CEO, IHS Towers, commented, “As our largest customer and longest serving partner, we are proud to have completed the renewal of all tenancies with MTN Group in our African markets. Today, we reinforce our strategic relationship and commit to increased operational stability, by securing our revenue streams into the next decade, and leveraging our shared innovation to deliver critical connectivity and support digital inclusion across the African continent. We are excited by the next phase of our commercial partnership and welcome the opportunity to work constructively for the benefit of the end user.” 

Building on their 20+ year relationship as commercial partners, both companies will leverage their shared operational excellence and engineering expertiseto meet the end users’ increasingly sophisticated data demands. Together, IHS Towers and MTN Group have a track record of navigating complex operating environments and challenging macroeconomic conditions to deliver connectivity crucial to economic growth and digital inclusion.

iXAfrica Data Centres and Moringa School launch Kenya’s first comprehensive Data Protection course. (Image source: iX Africa)

iXAfrica Data Centres, Kenya’s leading hyper-scale, AI-ready data center, has formed a pioneering partnership with Moringa School, a top technology skills provider

This collaboration introduces Kenya's first comprehensive Data Protection course, covering cloud fundamentals and data center management, while enhancing data security awareness nationwide.

Data protection training

The partnership was inaugurated at iXAfrica’s state-of-the-art NBOX1 Data Centre in Nairobi, with Kenya’s Data Protection Commissioner, Immaculate Kassait, MBS, in attendance. This initiative marks a significant step in advancing the technology capabilities of professionals in Kenya and East Africa, particularly in data protection and security.

Kenya is at the forefront in Africa with its Data Protection Regulation, which mirrors the EU’s GDPR standards. The Data Protection Act, enacted in November 2019, has ushered in a new era of data privacy, granting individuals enforceable rights over their personal information and establishing clear guidelines for data handling by public and private entities.

Moringa School, a leader in tech vocational training in Software Engineering, Data Science, and Cybersecurity, recognizes the critical need to improve data compliance skills for business professionals. Their robust corporate training programs, including Safaricom’s Digital Academy, highlight their dedication to equipping organizations with essential data protection skills.

Through this partnership, iXAfrica Data Centres and Moringa School will offer a distinctive and impactful Data Privacy training course tailored for the business sector, helping organisations meet compliance with the Office of Data Protection (ODPC) and adhere to Data Sovereignty requirements.

Nikki Germany, CEO of Moringa School, expressed, “Partnering with iXAfrica aligns perfectly with our mission to provide cutting-edge training that addresses the evolving needs of the business sector. By equipping professionals with vital skills in data protection, we’re not just shaping careers; we’re contributing to a secure and innovative digital future for Kenya.”

Snehar Shah, CEO of iXAfrica, shared, “iXAfrica is committed to helping enterprises meet their data localization needs, whether by hosting their infrastructure in a secure, high-uptime environment or by facilitating access to hypercloud services locally. This partnership with Moringa School will enable us to educate clients on data protection while furthering the ODPC’s mission to localise sensitive data.”

The Office of the Data Protection Commissioner, represented by a delegation led by Immaculate Kassait, was also in attendance. Immaculate Kassait commented, “ODPC paid a courtesy call to IX Africa data center. In her remarks, the Data Commissioner noted the efforts put in place to establish an Artificial Intelligence(AI) ready data center and emphasized the need to take into consideration data protection compliance measures. She further congratulated iXAfrica Data Center and Moringa School in their collaboration to train Data Protection Officers (DPO’s) in data protection in light of the dynamic ICT and privacy landscape”

Nigeria's new digital free zone aims to boost ease of business, attract global tech firms, and drive economic growth with modernised policies and incentives. (Image source: Adobe Stock)

To enhance the ease of doing business for global enterprises in digital, finance, knowledge, and services sectors in Nigeria, the Federal Government has established a steering committee chaired by President Bola Ahmed Tinubu GCFR

This initiative aims to promote and establish a digital free zone in Nigeria, catering to the unique needs of innovative digital trade and service businesses.

The Initiative for the promotion of Digital Free Zones in Nigeria (DiFZIN) represents private-sector stakeholders and serves as technical advisers. DiFZIN is a non-profit advocacy and policy research organisation backed by a consortium of private sector development-focused institutions, including Africa Finance Corporation, PwC Nigeria, Charter Cities Institute, Future Africa, and Itana. Its mission is to ensure Nigeria’s free zones ecosystem becomes a leading hub for global technology and service businesses in Africa.

The committee will work with government agencies and private stakeholders to align Nigeria’s free zone policies, technology, and processes with international standards. It will develop and publish frameworks to allow both global and local technology and service businesses to set up Pan-African or global operations from Nigeria. Businesses utilising the zone will benefit from competitive incentives such as tax, immigration, and banking advantages, streamlined government compliance, predictable regulations, and a supportive business environment.

This initiative supports the Federal Government’s strategic growth goals by aiming to increase foreign direct investment, create job opportunities, and facilitate capital flow into Nigeria’s economy through a forward-thinking approach to the free zones ecosystem.

The HMF/CME highlighted the crucial role of free zones in driving and sustaining economic growth in emerging markets like Nigeria, emphasizing that the digital age must integrate technology-focused businesses within a liberal regulatory framework to attract investment and showcase domestic talent globally.

Dr Olufemi Ogunyemi, MD/CEO of NEPZA (Nigeria Export Processing Zones Authority), emphasised NEPZA’s dedication to digital transformation. He highlighted the e-NEPZA platform’s role in streamlining government services in line with the Federal Government’s ease of doing business policy. Dr. Ogunyemi also stressed the importance of data privacy and the need for digital infrastructure, such as fibre optics, to support small businesses accessing global markets. “We look forward to partnering with DiFZIN to advance our digital processes,” he stated. NEPZA’s backing of Digital Free Zones marks a step towards a digitally-driven economy, unlocking new opportunities for businesses of all sizes in Nigeria.

Luqman Edu, executive director of DiFZIN and CEO of Itana, and the DiFZIN consortium, aim to support the Federal Government in making Nigeria a hub for regional expansion across Africa. These efforts are intended to enhance Nigeria’s GDP, government revenue, capital importation, and foreign exchange availability, while creating employment opportunities for the growing Nigerian youth population.

“DiFZIN is committed to driving the agenda for reforms to the regulatory frameworks for taxation, banking, immigration, and ease of doing business, among others, within the free zones ecosystem,” said Edu. “Our goal is to create a conducive environment for global technology and services-based businesses to thrive, facilitating remote operations and banking from Nigeria for Africa, thereby positioning Nigeria as a hub for Africa, akin to what Delaware is for the US, and Dubai is for Asia.”

Banji Fehintola, head of financial services at AFC, commented, “AFC’s advisory team is uniquely skilled in providing tailored financial and technical advice to public and private sector players across Africa. We look forward to collaborating with DiFZIN and all other partners to modernize Nigeria’s free trade zones, attract much-needed investment, create local jobs, and boost trade and commerce in Nigeria and Africa.”

Digital Free Zones promote innovation and economic growth by utilizing advanced digital technologies like AI and Edge Computing within a supportive regulatory environment. These zones act as incubators for innovation, offering a platform for businesses to enhance growth and competitiveness. The supportive regulatory framework ensures an environment conducive to experimentation, collaboration, and the seamless integration of emerging technologies into business operations.

The introduction of Network One in Nigeria aligns with the Central Bank of Nigeria’s directive for in-country transaction routing, boosting local processing capabilities. (Image source: Adobe Stock)

Network International, a prominent payment solutions provider and a key ally of Nigerian banks, has unveiled its state-of-the-art Network One platform in Nigeria

This award-winning digital payment solution positions Network International, a FTSE-listed entity, as a crucial enabler for local and regional markets, even amidst challenging conditions.

The company is now poised to onboard and empower banks, mobile network operators (MNOs), and fintechs across Nigeria and West Africa.

With a 30-year legacy in digital payments, Network International began as the processing arm of Emirates Bank in the UAE and has since expanded into markets like Egypt and South Africa under different brands. After two decades in Nigeria, the company continues to bolster its presence and commitment to the region.

Network One transforms Nigeria

The introduction of Network One in Nigeria aligns with the Central Bank of Nigeria’s directive for in-country transaction routing, boosting local processing capabilities. This integrated platform offers a comprehensive suite of payment products and services for banks, financial institutions (FIs), and fintechs in Nigeria, including digital solutions, loyalty programs, tokenisation, enterprise fraud prevention, embedded finance, and advisory services.

Nandan Mer, group CEO of Network International, stated, “This major milestone took us only a few months to deploy thanks to a local team that worked tirelessly and seamlessly with cross-functional colleagues in various geographies to ensure we deliver on Network One’s promise of innovation, resilience, and agility. Taking Network One live in Nigeria is integral to our company’s continued commitment to the country and the continent.”

Nigeria, with its fourth-largest GDP in Africa and strong consumer spending, is primed for a digital payments surge. The domestic digital payments market's total transaction value is expected to hit US$21.32bn in 2024, growing at an annual rate of 10.06% to reach US$31.28bn by 2028.

Electronic payments offer advantages over cash transactions, which are costly due to printing, storing, and transporting money, representing 2% to 5% of a country's transaction costs. In contrast, electronic payments are more secure, cost-effective, and faster, fostering economic growth.

Network One is an integrated payment suite that provides both merchant and issuer solutions, hosted and supported locally. It combines top technologies to offer end-to-end payment processing in a highly adaptable environment.

Network International's investment in local technology infrastructure aims to meet the needs of local and regional entities with market-relevant digital payment solutions.

Dr Reda Helal, Group MD – Processing, Africa and co-head group processing, Network International, explained, “Our presence on the ground and comprehension of the specific needs of the local market have enabled us to tailor a solution that is ideally suited for Nigerian enterprises. Our capability to establish a hub equipped with all the essential technology not only empowers our clients to enhance their value proposition but also positions Network to effectively contribute to financial inclusion and democratisation of payments, addressing the needs of a large population of consumers across the continent.”

Network International operates on a hub-and-spoke model, with Nigeria serving as the hub for West Africa and Francophone Sub-Saharan Africa. Additional hubs in Ghana and South Africa enable efficient service to its African clientele.

The company’s investment in Nigeria includes fostering a skilled local workforce. By collaborating with local banks and mobile operators, Network International enhances its support for small and medium-sized enterprises and payment experts.

Network recently advanced its BBBEE status from level 4 to level 1 in a year, reflecting its growing trust among African institutions as a preferred payments partner.

Dr. Helal added, “By recruiting the right talent, we are assured that our teams in Nigeria can achieve quicker results with reduced reliance on our international teams, leading to significant operational benefits for our clients locally and regionally.”

Network International’s investments across Africa have improved economies of scale, allowing the provision of advanced technology at lower costs compared to internal development. This affordability, combined with cutting-edge features, attracts a broad audience and supports digital transformation across the continent.

“Network One’s successful touchdown in Nigeria embodies our ambition to establish ourselves as a company that is authentically local in the African markets we serve,” Mer concluded.

The company prioritises creating a secure digital payment sector to foster trust among consumers, banks, and other stakeholders. Network International has invested in comprehensive cybersecurity and fraud prevention, utilizing AI tools to monitor transaction patterns and device usage for fraud detection.

By focusing on connecting buyers and sellers through digital payments, Network International aims to reduce cash reliance and boost the Nigerian economy. The company promotes financial inclusion by partnering with telecoms and fintechs to reach underserved populations, including those in remote areas.

The platform’s virtual wallet feature simplifies access to digital products for the unbanked, enabling users to obtain cards directly from their phones and load them via mobile wallets. This feature is crucial for driving financial inclusion, providing banks with enhanced capabilities to serve end-users efficiently.

Network International is also committed to corporate social responsibility, adopting a school to promote financial literacy among young students as part of its effort to support financial inclusion and digital transformation in Nigeria from an early age.

A collaborative industry environment, supported by government policies, is vital for accelerating digital payments and financial inclusion. Network International is ready to engage with government-sponsored programs and infrastructure developments to enhance Nigeria’s digital economy.

The company’s platform handles high transaction volumes with speed, security, and scalability, ensuring reliable and trustworthy digital payments.