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Internet Fraud Hits Kenya Hard – $300 Million Stolen     |     Zipline: The Medical Drone Delivery Startup Now Valued at $1.2 Billion in Ghana     |     Importing Maize In Kenya Is Now Duty Free     |     NEW REPORT: Funds Raised By African Tech Startups in 2018 Surpass Some Countries GDP     |     Jack Ma Feels Sorry For Countries That Use Laws To Muffle Innovation     |     Jumia: Lessons For E-Commerce Companies In Nigeria     |     NIGERIA: Like MMM SEC Warns Again That Loom Money Is A Big Fraud.     |     MTN Nigeria Lists On The Nigerian Stock Exchange Today     |     CarePay: Kenyan Startup Looks To Disrupt Health Care Payment In Africa With £40 Million Expansion Fund     |     New Oxford Business Group Report Shows 72% of African CEOs Think the AfCFTA Will Improve Their Earnings     |    
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Internet Fraud Hits Kenya Hard – $300 Million Stolen

May 20, 2019

Internet fraud is hitting Kenyan businesses hard. The case was worst in 2018, according to a new report by cybersecurity firm Serianu.
Over Sh29.5 billion was lost to cybercrime and related activities last year as criminals stepped up attacks on banks, Saccos and government agencies.

Key Breakdown Of Facts And Figures

  • The funds were lost through direct theft or indirect expenses linked to cybercrime. 

  • Financial institutions, such as banks, insurance companies, and micro-finance institutions were the most affected group.

  • Government agencies also topped the list of targeted institutions as criminals sought out critical personal data to exploit.

Also See: Kenyan Loan Guarantors May Soon Be Hard To Be Sued

  • KSh230 million was lost through personal computer fraud

  • KSh100 million through business emails — an attempt to trick someone into giving information over the Internet or by email that would allow someone else to take money from them.

  • KSh70 million through fake cheques, and;

  •  KSh66 million in identity theft.

  • Sh97 million and Sh72 million was lost through hacking of transaction channels and identity theft respectively.

“From our survey, we estimated the cost of cybercrime in Kenya at Sh29.5 billion for 2018, which is 40 per cent increase from the Sh21 billion reported over a similar period in 2017,” explained Serianu Chief Executive Wiliam Makatiani.

Internet Frauds

While it seems a field day for the internet fraudsters, one important point to note here is that it appears that instruments of law, policies and regulations are proving less effective in the efforts to check online frauds in Kenya.

Just in 2017, the Central Bank of Kenya issued a guidance note on Cyber Security to public institutions. 

Among other things, the guidelines provide for the minimum requirements for businesses to prevent cybercrime, one of which is interestingly, that the members of the board of a company should understand cybersecurity matters and possible threats to the business.

Boards of companies are also expected to establish or review cybersecurity risk ownership and management accountability and assign ownership and accountability to relevant stakeholders; the coverage should include relevant business lines and not just the IT function. 

The Central Bank of Kenya also demands that companies perform regular checks to ensure they are safe from cyber theft.

And it doesn’t seem the institutions in Kenya have failed to comply.

In fact, the report said that financial players, including banks, insurance companies and Saccos, spent Sh6.4 billion on protective measures.

Government agencies and private service providers, including telcos and sports betting companies, on the other hand, spent Sh5.9 billion and 4.8 billion respectively. According to Serianu, while more companies are reporting cybercrime attempts and even losses, many cite the lack of adequate personnel as the biggest challenge to complying with industry standards.

Graph of Nationality of Victims
(c) ResearchGate

Earlier in 2019, Kenya’s Directorate of Criminal Investigations (DCI) released the names and faces of more than 100 individuals linked to the theft of millions of shillings from several commercial banks in Kenya.

Communications Authority of Kenya (CA)’s data shows that cases of online theft aimed at both individuals and institutions over the last quarter of last year increased by 168 per cent.

Malware attacks recorded a 400 per cent increase from 1.8 million between July and September last year to nine million recorded between October and December, with a majority of cases targeting smartphone users.

“The quarter saw an exponential increase in the number of malware attacks as well as the number of misconfigured systems,” said the CA in the latest sector statistics report.

Charles Rapulu Udoh

Charles Rapulu Udoh, a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organisations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

Zipline: The Medical Drone Delivery Startup Now Valued at $1.2 Billion in Ghana

May 19, 2019

Zipline is not leaving any stone un-turned. While aiming to solve medical emergency problems, it is not entirely looking away from the funding that would sustain its life for a greater time to come. The American startup which delivers medical supplies, including blood, rabies vaccines and antivenom, to thousands of hard-to-reach health clinics in Rwanda and Ghana is now worth $1.2 billion in valuation.

The startup crossed the new line in a $190 million new venture funding from top venture capitalists, including Baillie Gifford, The Rise Fund (which is TPG’s global impact fund), Temasek, Alphabet’s investment arm GV and Katalyst Ventures. The funding brings Zipline’s total capital raised to $225 million, before finally putting its market worth at $1.2 billion valuation. 

2017 data

Zipline Is Not Looking Back — The New Funding Will Enable It To Shoot Beyond Its Boundaries

For CEO, Keller Rinaudo, who co-founded Zipline with Keenan Wyrobek and William Hetzler in 2011, with the new funding, Zipline is aiming to set up delivery hubs at 2,600 health facilities in Rwanda and Ghana by the end of this year.

And it is not stopping there; Zipline will soon be flying drones across the US state of North Carolina where it is expected to be making deliveries of medical supplies. It has since secured the permission of America’s Federal Aviation Administration to do so.

“People think what we do is solving a developing economies problem. But critical-access hospitals are closing at an alarming rate in the U.S., too, especially if you live in the rural U.S. Life expectancy there has declined over the past several years,” Rinaudo said. 

By partnering with health-care facilities, governments and pharmaceuticals businesses, Rinaudo said Zipline aims to provide a much higher level of access to necessary treatments wherever people live.

2017 data

Key Reminder of How Zipline Is Gradually Invading The Drone Market And Delivering Services

  • Zipline recently expanded into Ghana from Rwanda

  • Zipline’s drones carry up to about 4 lbs (or 1.75 kg) of cargo, fly at up to 68 mph (or 110 km/hr) in all weather and have a round-trip range of about 99 miles (or 160 km). 

  • Already in Rwanda, Zipline’s drones have flown more than 1 million km and have made more than 13,000 successful deliveries.

  • According to data from the National Center for Health Statistics, drug overdose deaths in the United States have been a major factor in lower life expectancy in the U.S, especially in rural areas. This is what Zipline hopes to solve.

2017 data

Zipline is looking beyond Ghana, and Rwanda and North Carolina. In fact, the startup is sure that more funds will come for more of its expansion across Africa, South Asia, Southeast Asia and the America and properly position the company to serve 700 million people in the next five years.

2017 Data

Zipline is winning and gaining momentum. One key strategy the startup brought to the table is: make last-mile logistics not only a common thing for food and retail but also for the supply of life-saving medical services.

Charles Rapulu Udoh

Charles Rapulu Udoh, a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organisations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

Importing Maize In Kenya Is Now Duty Free

May 18, 2019

Ugali may soon be running out in Kenya, a huge chance for Kenyan importers. Kenyan government is going ahead to wave the magic wand by calling it an end to import duties on maize in Kenya.

For the government, the strategy is to waive 50 percent duty imposed on imported grain from outside East Africa Community region, to avoid last minute rush to plug the grain shortage that has seen the price of flour rise by 30 percent in one month.

For the Kenyan entrepreneur, the strategy would be to rush and invest in this direction before the government changes its mind.

Image result for Maize production chart Kenya 2018

Kenya’s Agricultural Production Sales: Annual: Maize from 2002 to 2017 in the chart:

When Are Kenyans Expecting This Change?

Soon! From July, 2019, the duty-free maize import window opens. 

“We are watching the situation closely to ensure that proper mechanisms for importation are put in place to avoid being caught unawares,” Kenya’s Agriculture Cabinet Secretary Mwangi Kiunjuri is quoted as having said.

At the moment, Kenyans can go all the way to potential maize markets in Rwanda and Mozambique where maize is selling at $288 and $290 per tonne, respectively, and begin the bargain in time.

Kenya’s Import Duty Reduction Is Also An Opportunity For Malawian Entrepreneurs — It’s A Game of Chess

The pressure is on Malawi to open its borders right now. In the 2016/2017 harvesting season, the Malawian government imposed a ban on maize export in Malawi. This cost Malawi K69 billion in potential export revenue, according to a study by the International Food Policy Research (Ifpri) published December 2018.

Grain Traders and Processors Association of Malawi therefore says the move by Kenya to remove duty on maize imports gives local traders in Malawi impetus to negotiate the lifting of maize export ban.

Image result for Malawi Maize production chart

Maize prices improving for Malawi farmers

The Malawian government appears to have understood the bad game of freezing its maize stocks for export. Malawian Minister of Agriculture, Irrigation and Water Development, Joseph Mwanamvekha, has said that lifting the maize export ban could be the only option government needs to look at amid a projected 355 000 metric tonnes (MT) maize surplus this year.

He said government can only open up the borders once it has procured enough stock for the reserves as well as for Agriculture Development and Marketing Corporation (Admarc.)

Restrictions on staple foods or cash crops is a strategy governments in developing countries use to promote food security or industrial development goals. 

Charles Rapulu Udoh

Charles Rapulu Udoh, a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organisations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

NEW REPORT: Funds Raised By African Tech Startups in 2018 Surpass Some Countries GDP

Tech startups in Africa are having a field day. In fact, the amount raised through funding, by tech startups in Africa is two and a half times larger than the GDP of Sao Tome and Principe, an island nation off the coast of Central Africa.

The Afrobytes and Viva Tech conferences in Paris this week are providing an opportunity to analyse the growth of tech startups in Africa. Fund-raising is one of the key growth areas. Partech Africa, a venture capital firm, hinted that 146 startups in 19 African countries raised $1.16 billion for African digital entrepreneurs in 2018.

Image result for Tech funding Africa 2018

Key Analysis

  • Kenya, Nigeria and South Africa in all saw a 78% of the total funding, with Egypt close behind.
  • French speaking countries are not way behind:Senegal is the leading tech ecosystem among them with a total of $22 million raised in four deals so far. 
  • Forty Senegalese startups last November secured a total of $2 million in government funding alone.
  • Side by side with their Anglophone peers, African Francophone countries, Partech noted, operate in smaller markets, and lack capital and mentors.
  • With African population expected to reach 1.4 billion by 2021, and with over 1 billion smartphones on the continent, Africa looks like the a promising center for the world’s leading high-tech and telecom companies.

What Speakers At Both Conferences Said

Marieme Diop, a venture capital investor at Orange Digital Ventures, said that ‘unfortunately in Francophone Africa, it is not in our DNA. People who succeed in business or in electing positions do not necessarily reach back to help their peers to show them how to be successful. In the Anglophone world, it is a must for anyone who wants to start something: seeking advice. So the gap is not only financial’ between the regions. Africa is seen by many as the next frontier for venture capital, with its booming population and mobile-first economy. That’s why Google, Facebook and PayPal participated in Paris in Afrobytes 2019.’ 

We do not want people globally to see African high-tech as an exotic stuff,’ said Afrobytes CEO Ammin Youssouf. ‘We want to be heard and talk about AI, blockchain, what is happening in Silicon Valley, because it has an impact on us. We already have brilliant minds in Africa, especially in tech, to have those conversations.’Unlike the global trend, where men dominate the high-tech industry, women are leading the movement in Africa.’

Women Are Becoming A Large Part of the Tech Revolution

Ben White, chief executive officer of venture capital platform VC4Africa, who has been supporting startups on the continent for more than 10 years analysed this situation:

‘‘Actually, what we see in the statistics is that women’s involvement and participation on in the African continent is much higher than what you would find in New York, for example, or San Francisco. I think it is an advantage. It also means having women investors who are very sensitive to gender-related questions and can also ensure that the system we are building is inclusive.’’ 

Can Government Help Tech Startups By Way Of Funding?

Government in startups? That is a two-way risk:

Kenza Lahlou, co-founder and managing partner at Outlierz Ventures, said the public sector ‘should not invest [in startups].To him, governments simply don’t have the skills needed to pick good investments. However, government can bring support by way of legislation, and policy support.

Morocco, for instance, already has InnovInvest, which it is doing in partnership with the World Bank to invest in local venture capitalist funds, to lower the risk for local funds.

Charles Rapulu Udoh

Charles Rapulu Udoh, a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organisations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

Jack Ma Feels Sorry For Countries That Use Laws To Muffle Innovation

Jack Ma, the Co-founder of Alibaba, warns countries that tighten their laws to restrict companies’ ability to innovate. According to Jack Ma, such countries may soon be headed to doom. This was his message at the Viva Tech Conference held in Paris, France.

‘‘When faced with problems, Chinese entrepreneurs start to solve the problems, then think about rules and laws,” he said.

‘‘I worry about Europe,” Jack Ma added. “I worry about the worries of Europe. Africa does not worry. Asia does not worry. What are they worried about?

Jack Ma sees a problem with the way Europe is going about regulating its tech startup ecosystem. For that, he said he is worried because Europe is worried about technology and is tightening regulations that restrict companies’ ability to innovate. The European Union for instance last year introduced stringent new data laws targeted at ensuring consumers’ right to privacy. The EU executive, meanwhile, recently published guidelines aimed at maintaining ethics in artificial intelligence (AI).

“If you think the technology revolution is a problem, I’m sorry to say a problem just started. If you think it’s an opportunity, the opportunity just started. The only thing is your mentality. If the mentality is now a worry, you’ll worry all the time,” said Jack Ma told attendees at the Viva Technology conference in Paris Thursday

“Everything they do is full with rules and laws. And everything they think about, they start to worry. When they worry, they make rules and laws.”

Jack Ma already knows that his home country China which is home to a group of three large technology firms often referred to as the BAT — Baidu, Alibaba and Tencent understands this game and is playing it better. China has seen swelling venture capital investment in the tech sector, with Ant Financial raising a record $14 billion funding round from investors in 2018 alone.

This Is Perhaps Why Europe Is Not Doing So Well

Jack Ma hinted that the reason Europe is not doing so well in tech compared to that of the U.S. and China is because of its large regulations.

Jack Ma: Don’t Worry About Regulating AI: It Could Be Used To Catch Thieves

Jack Ma also said there was no need for Europe or other continents to worry about AI. 

He said that his firm uses artificial intelligence to detect and trap a lot of criminals.

For example, he referred to his company’s payments platform Alipay. It uses machine learning to discover “cheating” bad actors.

Charles Rapulu Udoh

Charles Rapulu Udoh, a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organisations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

Jumia: Lessons For E-Commerce Companies In Nigeria

May 17, 2019

Despite listing on the New Stock Exchange and getting called a fraud by Citron Research and begging to be given one more chance to prove its mettle, Jumia is giving reasons why it listed on the New York Stock Exchange instead of the Nigerian or the more developed Johannesburg Stock Exchange. Here are some of the reasons given by Jumia for this. 

Jumia CEO, Juliet Anammah

Despite listing on the New Stock Exchange and getting called a fraud by Citron Research and begging to be given one more chance to prove its mettle, Jumia is giving reasons why it listed on the New York Stock Exchange instead of the Nigerian or the more developed Johannesburg Stock Exchange. Here are some of the reasons given by Jumia for this. 

E-commerce Business in Nigeria and Africa Has No Long-term Investors

Jumia said the first reason why the e-commerce giant had to bypass the Nigerian and other African Stock Exchanges is because e-commerce in Africa has no long term investors. This is why, according to it, it had to explore the American market, where there is deeper understanding of how the market works. In fact, for Jumia Nigeria’s Chief Executive Officer (CEO), Juliet Anammah, Nigerian investors are impatient and can’t wait for long-term returns on their investment. American investors, on the other hand, are prepared to invest and wait for long term returns on investment (RoI).

Konga As A Case Study

Even Citron Research, which cited Jumia for fraud wrote this about Konga, Nigeria’s second leading ecommerce company which has been acquired by Zinox Group.

The divestment of Naspers(a South African company), ‘‘the smartest and largest tech investor in Africa’’ from Konga, another online eCommerce company in Nigeria was not due to a lack of funds or a short-term investment horizon,[after all,] Naspers has $12 billion of cash on the balance sheet and its original investment in Tencent ([in which it] still owns >30%) dates back to 2001… Rather, this decision was a reflection of Naspers’ bearish view on the Nigerian eCommerce market vs. a bullish view on South African eCommerce. Since its Konga exit, Naspers announced plans to invest over $300 million in South African tech businesses,’’ Citron noted.

Of all arguments, the least would be that Naspers divested from Konga not because of a short-term focus. Tencent, which Citron cited, is not notorious for ecommerce business, like Alibaba or Amazon. In fact, Konga was founded in 2012. Naspers acquired 50% equities in Konga in 2013, a year after Konga was formed, and finally divested in 2018, a space of five years. This does not disclose a longer term investment of say, 10 years.

© CBInsights

E-commerce Platforms Are Not Reputed To Make Profit In The Short Term

Another reason given why e-commerce business have issues with investors is that it hardly makes profit in the short-term. 

Anammah said e-commerce platforms are not reputed to make profit in the short term, stressing that investors in Alibaba had to wait for long term Return on Investment.

Amazon As A Case Study:

©Quartz

It took Amazon, the global leading online retailer as a public company to make profit. The company first reported a quarterly profit in the fourth quarter of 2001 and at $5 million, which may not be too attractive for investors. It did not come as a surprise that towards the end of 2017, Amazon reported a whopping $1.86 billion in net income. This does not seem to bother Amazon CEO Jeff Bezos whose cardinal business objective was to sustain more investment for the future growth of the company.

Much of Amazon’s profit was bolstered by the US tax cut, which added about $790 million to its profit in accounting terms. Take that away, it would have taken Amazon a longer time to make profit.

 So When Will African E-commerce Companies Consider Listing In Their Countries?

Jumia Nigeria’s CEO Anamma said listing on the African Stock Exchange would take would not take a much longer time than expected. Jumia said this may happen soon, by 2022 when investors must have understood the dynamics of the industry.

Jumia Finally Comes Hard On Citron

Anammah said Jumia is seriously considering launching a legal battle against Citron Research which released a controversial report recently. 

“We are looking at it (taking legal action). The board is looking at it. Some recent allegations were made about Jumia on the basis of selected, biased or unverified facts with what appears to be a clear objective of damaging Jumia. We held our earnings call on Monday May 13th and we published our first quarter results, which we are very pleased with, and provided information to demonstrate those recent allegations are wrong, ’’ Juliet Anammah said.

Jumia, on April 12 2019, became the first African tech stock to list on Wall Street and its shares soared as analysts branded it the ‘Amazon or Alibaba of Africa’. But the shares fell sharply after Citron Research’s publication which questioned some of Jumia’s sales figures and accused the firm of fraud. The shares have since rebounded.

Charles Rapulu Udoh

Charles Rapulu Udoh, a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organisations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

NIGERIA: Like MMM SEC Warns Again That Loom Money Is A Big Fraud.

Loom Money Nigeria is on its first spotlight from SEC, as the Nigerian securities regulator has said that all that glitters may not be gold. In fact, to be sure, SEC used such words as Ponzi Scheme and fraudsters. In a statement, it said:

“If it were a local Ponzi scheme with known offices, it would be very easy for the Commission to seal their offices and freeze their accounts.


SEC Boss,
Daniel Ogbarmey Tetteh


Unlike MMM that had a website and the promoter known, the people promoting Loom are not yet known and this pyramid scheme operates through closed groups mainly on Facebook and WhatsApp.’’

The Loom Money Nigeria Warning And Why?

A statement by SEC’s Head of Media SEC said Loom Money Nigeria has taken over the social media.

Warning!

SEC warned that fraudsters are currently running an online investment scheme tagged “Loom Money Nigeria.’’

SEC Lists Out The Targets?

SEC said the scheme targets young people, luring them to participate in a pyramid model of the Ponzi, using such social media platforms like Facebook and WhatsApp. SEC said young Nigerians get lured to invest as low as N1,000 and N13,000 and to get as high as eight times the value of the investment within 48 hours.

SEC said the venture was a Ponzi scheme, where returns would be paid from other people’s invested funds, adding that it had no tangible business model.

“We are aware of the activities of an online investment scheme tagged ‘Loom Money Nigeria,’’ it said. “We therefore wish to notify the investing public that the operation of this investment scheme is not registered by the Commission.” 

SEC, therefore, advised the public to avoid committing their hard earned money to the scheme, adding that anyone that subscribed to the illegal activity did so at his own risk.

Image result for SEC warned about MMM chaqrt

Loom Money in Nigeria is also known severally as Jack Loom, Catherine Loom, among others, depending on who created the accounts.

Action To Be Taken By Both Sides

SEC, however, assured that an inter-agency committee, Financial Services Regulation Coordinating Committee, was working on the issue, and that the commission was also collaborating with security agencies to track them down.

In 2017, the Nigerian Deposit Insurance Corporation, NDIC, said that an ‎estimated three million Nigerians lost N18 billion in the MavrodiMundial Movement, MMM, ponzi scheme.

From SEC’s statement, it appears that until then, nothing yet is precisely going to loom out of Loom Money Nigeria. So, save your money until then.

Charles Rapulu Udoh

Charles Rapulu Udoh, a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organisations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

MTN Nigeria Lists On The Nigerian Stock Exchange Today

May 16, 2019
MTN

MTN Nigeria is expected to sound the gong and begin trading on the Nigerian Stock today. Barring any unforeseen circumstances, MTN Nigerian would be listing a total of 20,354,513,050 shares at N90 per share today.

When listed at N90 per share, MTN Nigeria would emerge the second largest company on the Nigerian Stock Exchange after Dangote Cement, with a market capitalisation of N1.83tn. So investors should get their money handy.

A shopper walks past an MTN shop at a mall in Johannesburg, South Africa, March 2, 2017. REUTERS/Siphiwe Sibeko

Key Things To Note About This Listing By MTN Nigeria

  • The company, also, recently announced aN48.4 billion Profit After Tax, PAT, for its first quarter, Q1, ended March 31, 2019, representing 50.2 percent increase compared to N32.2 billion recorded in the corresponding period in 2018.
  • MTN claims it can pay up to 80% of its earnings after tax as dividends.
  • MTN said the proposed listing on the NSE would create a new telecoms asset class for investors and provide a wider group of Nigerians with a chance to participate in the MTN investment opportunity.
  • The listing on the NSE is one of the conditions reached in the resolution of the N330bn fine placed on the telco by the Nigerian Communications Commission for its inability to disconnect improperly registered SIM cards.

Related: MTN Nigeria Prepares To List On the Nigerian Stocxk Exchange, Converts To A Public Company

  • MTN is not going to list through IPO, but by introduction in the first half of 2019. Listing by introduction means MTN is not offering its shares fully to the public yet.

Listing by Introduction

  • To be able to list by introduction, the company would usually have raised capital prior to applying to list, and also must meet the listing requirements — including a minimum number of public shareholders (300 to list on the Main Board; 51 to list on the Alternative Securities Market (ASeM) and minimum public float (20% for the Main Board; 15% for ASeM). ASeM provides a platform for small and mid-sized fast growth companies to raise critical long term capital at relatively low cost to realize their business potential.

What does this mean? 

“It means that we will list the company in the initial phases without any public offer or sell-down or initial public offering. I think this will enable us to get the company listed whilst the market still digests the implications of what has happened over the last few months,” The President/Chief Executive Officer, MTN Group, Mr. Rob Shuter, disclosed at the MTN Group’s investor update conference call in February.

“We will in phase two be doing a project to increase the Nigerian participation in MTN Nigeria, targeting more a free float of around 35 per cent than the free float we have today which is around 20 per cent. So, we aim to conclude at least the listing by introduction in the first half of 2019, pretty much as soon as we can, and then subject to market conditions, appetite and demand we would in phase two do the sell-down.’’

Can You Invest In MTN Nigeria’s Shares Now?

  • By the NSE’s Rules, MTN would need at least a minimum number of 300 public shareholders to able to list on the Main Board of the NSE where it is listing by introduction.
  • Since MTN is going by way of introduction, it may not able to open a larger portion of its shares for subscription as we have noted above. What is going to happen today is that MTN Nigeria would simply introduce the shares privately owned by its shareholders while it was still a private company on the Main Board of the NSE.
  • However, it would need at least 300 public shareholders to be able to fully comply with the NSE rules. What to watch out for is that a few of its private shareholders may get to sell their shares if the share prices are favourable to them, to keep the excitement on.
Operational and financial performance review, 2010

How To Prepare Yourself Better for MTN Nigeria’s Listing 

Once there is a willing seller for MTN Nigeria’s shares today who is ready to accept your offer price, then you have got a deal.

However, to participate in MTN’s shares, or other shares of companies you need to do the following:

  • Open stock brokerage account with a stockbroker registered in Nigeria. Here is a link to some of the stock brokerage firms in Nigeria;
  • Have any amount of money as you want deposited into your stock brokerage account.
  • Then notify your stockbroker to purchase shares for you at a price you quote.
  • However, if you operate an online trading account on the same online stock brokerage account, then without wasting much time, place an online bid for the shares and hope that an offer is available for you at the right price.
  • There you have it! A deal is sealed once your bid is accepted. 
  • A email notification alarms you of the transaction. 

Charles Rapulu Udoh

Charles Rapulu Udoh, a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organisations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

CarePay: Kenyan Startup Looks To Disrupt Health Care Payment In Africa With £40 Million Expansion Fund

There are still so much unexploited opportunities in the African health payment market. This is what the Amsterdam and Nairobi-based startup, CarePay International is looking to tap into. With £40 Million in new funding, the startup is trying to expand to more territories.

Key Analyses

  • And it is also choosing Tanzania,the sixth most populous country in Africa ( which had the value of Mobile Money Transactions reaching TZS 50 Trillion ( about $22 billion) in 2016–17) as the starting point of its investment targets.
  • With the latest funding of £40 million, CarePay is already one of the most funded startups in the whole of Africa, in the rank of Andela, others. 
  • The startup is going to Health tech in the countries and it plans to digitally connect health players including insurers, users, and providers on a single mobile platform, so that they can communicate and make transactions in real-time.
  • The startup was also strategic with this round of fund raising as it targeted a pool of investors from different investing backgrounds, in order to give the startup a two-sided look: that of generating a social outlook for the startup and bringing back financial returns. Dutch private equity funds IFHA-II, impact investor ELMA Investments, Dutch Ministry of Foreign Affairs which invested through the PharmAccess Group are some of the mixture of investors for this round.
  • By December 2017, 49.1 per cent (338.4 million) global mobile money accounts were in Sub-Saharan Africa. Within the region, East Africa had 56.4 per cent of the accounts, followed by West Africa at 30.9 per cent. In Eastern Africa, 66 per cent of the adult population of Kenya, Rwanda, Tanzania and Uganda combined actively used mobile money.
  • Although health insurance coverage is still low in many countries in Sub-Saharan Africa, mobile money use may have increased access to it. Kenya’s social health insurance, the National Hospital Insurance Fund (NHIF), for instance, experienced a 500 per cent increase in voluntary payment subscribers between 2009 and 2017 after the organisation started receiving payments via M-PESA

Also See: Kenyan e-Health Startup Raises $3m For Expansion

CarePay International was launched in 2015. 

“The mobile phone allows you to reach everyone at almost no extra cost, this creates unprecedented opportunities for health insurance schemes,” said Onno Schellekens, CEO of CarePay International.

“Universal health coverage in Africa will only be possible if governments and their citizens can provide and access health services from both the public and private sectors through seamless and efficient mechanisms, CarePay brings that ambitious vision within the realm of possibility,” said Tom McPartland, a Board member of ELMA Investments.

“The current health insurance model excludes huge parts of the African population as the administrative costs are too high, there is not enough data and outpatient costs cannot be controlled,” said Max Coppoolse, IFHA-II’s Managing Partner. “CarePay’s mobile technology addresses all these elements and in addition offers cross-sale opportunities and other significant growth prospects for insurers.”

CarePay International works with private and public health payers, connecting millions of people to its platform that are currently excluded from quality healthcare services in Africa.

Charles Rapulu Udoh

Charles Rapulu Udoh, a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organisations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution and data analytics both in Nigeria and across the world.

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New Oxford Business Group Report Shows 72% of African CEOs Think the AfCFTA Will Improve Their Earnings

May 15, 2019

July is on its way and The African Continental Free Trade Area (AfCFTA) is already gaining momentum. Oxford Business Group is not failing to spur the moment. The Group’s latest survey says about 72 % of African CEOs believe the AfCFTA will have a positive impact on intra-regional trade , and by extension their businesses.

A Breakdown of The Survey

  • The survey also revealed that 84% of them have positive expectations of local business conditions in the coming twelve months.
  • The respondents’ companies are based in eight African countries namely, Morocco, Kenya, Nigeria, Egypt, Ghana, Djibouti, Algeria and Côte d’Ivoire.
  • 78% of them indicated that their firms were planning at least one significant investment in the next twelve months.
  • 38% think that the factor that will most likely affect their economy would be a rise in oil prices. 
  • The second factor is political or security instability in neighboring countries, according to 23% of the respondents.
  • Interrogated on the most needed skills in their countries, 36% of the respondents revealed that leadership was most needed while research, development and engineering were chosen by 14% as the most needed competence.

The Business Barometer of OBG is according to data collected obtained from companies that fall into the following parameters, among others:

-17% of companies surveyed were based in Morocco
-16% of companies surveyed were based in Nigeria
-15% of companies surveyed were based in Egypt
-13% of companies surveyed were based in Côte d’Ivoire
-13% of companies surveyed were based in Ghana
-12% of companies surveyed were based in Algeria
-11% of companies surveyed were based in Kenya
-5% of companies surveyed were based in Djibouti

Ghana, Egypt Lobby For Continental Free Trade Headquarters

  • Ghana is one of the six African countries that is bidding for CFTA to be hosted by them.
  • Aside Ghana, other countries bidding to host CFTA Secretariat are Ethiopia, Eswatini (formerly Swaziland), Madagascar, Kenya, and Senegal.

Ghana’s Information Minister, Mr Kojo Oppong Nkrumah, on behalf of the Ghanaian government, received the 10-man AU delegation led by Ambassador Rosette Nyirinkindi Katungye, an advisor on Regional Integration at the Bureau of the office of the AU Chairperson, shortly after they arrived at the Kotoka International Airport.

Related: More Revealing Facts About the African Free Trade Agreement and Why Nigeria is Out

Mr Nkrumah said Ghana was looking forward to grabbing the opportunity which comes with several benefits, including the creation of jobs.

“In the coming days, Ghanaian officials will take them round on an inspection to show our preparedness. If you have the secretariat in your country, it is a huge deal which will bring many opportunities for the growth of this country,” Mr Nkrumah said.

The Africa Continental Free Trade Area is a planned free trade area outlined in the Continental Free Trade Agreement among 49 of the 55 AU nations.

Ghana’s President Nana Addo Dankwa Akufo-Addo, in March last year, appended his signature to the three legal instruments, namely the agreement establishing the Continental Free Trade Area; the Protocol on Free Movement of Persons and the Kigali Declaration which have brought the CFTA into fruition.

Image result for AfCTA chart
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Charles Rapulu Udoh

Charles Rapulu Udoh, a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organisations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution and data analytics both in Nigeria and across the world.

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