African telecoms giant MTN is exploring the deployment of other electronic payment platforms for its customers in Nigeria to recharge their phones after disagreements with commercial banks led to disruptions of USSD services. The decision comes after its customers suffered a series of disruptions and inability to recharge their phone lines and some other services offered jointly by MTN and commercial banks owing to disagreements between the two parties over commission and service charges.
MTN
It could be recalled that over 77 million MTN subscribers were disconnected from all banking channels by the commercial banks, due to disagreements over banks’ commission which was reduced by the mobile network operator from an average of 3.5% to 2.5%. The commercial banks, in an earlier written communication with MTN, were reported to have asked for a reversal to the old commission or they would block MTN airtime recharge services in all their channels.
All the commercial banks, except Zenith Bank which was connected directly to MTN, thereafter barred MTN from their banking channels, leaving many MTN subscribers stranded and frustrated as they were unable to recharge airtime through USSD and bank apps amid the Easter celebrations. To overcome the challenge, MTN is looking at alternative channels include payment solutions platforms such as Flutterwave, Jumia Pay, OPay, Kuda, Carbon and BillsnPay.MTN said its customers could recharge airtime by dialling *904# and *606#. Adding that “It will interest you to note that for the benefit of our customers who have been greatly inconvenienced by the service suspension, we now have alternative channels of accessing MTN services electronically.
The list and links to access the various alternative platforms are MTN On Demand is on *904# and also via https://mtnondemand.flutterwave.com; Barter By Flutterwave (app);Jumia Pay (app);Pay (app);MTN Xtratime airtime loans (*606#);Carbon (app);Kuda (app);BillsnPay (app and web);myMTN Web Momo agent *223#.The Apps can be downloaded from the Playstore and the Appstore.”
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
MTN Group has begun to work on separating its fiber and fintech units. This movement is part of plans to unlock value and raise funds to boost its development. The operator is looking for partners and strategic investors for the two subsidiaries.
Ralph Mupita, CEO MTN
The company has 85,000 kilometers (52,817 miles) of fiber across the continent, while fintech products such as mobile payment services are growing rapidly. The strategy represents the next phase of an ongoing plan to sell assets and repay debt to allow MTN to invest in its expansion.
The South African-based company seeks to take advantage of the millions of Africans who connect to the Internet for the first time each year. Many do this via smartphones, and there is rapid population growth in major markets on the continent such as Nigeria. MTN’s fintech business could contribute 20% of the group’s revenue over the next three to four years, up from 8% currently.
“We recognize that there is a significant demand for data in Africa that is not going to stop. Nothing prevents us from calling on other parties to help us finance the infrastructure we need. This work is already underway, ”said CEO Ralph Mupita.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer
With the publication of its financial year results ending December 2020, MTN Nigeria shows it has upped its market leadership position by a wide margin with an increment of 12.2 million mobile subscribers bringing the total 76.5 million. Add to that, MTN also recorded active data users’ increase of 7.4 million taking the total to 32.6 million. These subscriber records had positive financial impact on the bottom line of the telecoms company as service revenue was increased by 14.7% to NGN1.3 trillion, earnings before interest, tax, depreciation, and amortisation (EBITDA) grew by 9.7% to N685.7 billion. Also, EBITDA margin declined by 2.5 percentage point (pp) to 50.9%, profit before tax (PBT) grew by 2.6% to N298.9 billion while earnings per share (EPS) rose by 0.9% to N10.
Calvin Collett, the Managing Director of MTN South Africa
Interestingly, this is happening at a time the company is working assiduously to improve its infrastructure with the launching of its Supersonic AirFibre offering in South Africa. The product is said to overcome distance and a lack of infrastructure in urban, township and rural communities to bring fibre-quality connectivity to more households across the country. In the words of Calvin Collett, the Managing Director of MTN South Africa’s ISP, MTN is breaking down the traditional barriers to entry that have denied much access to a modern, connected life, adding that “from Soweto to Swellendam, we believe that every household deserves the speed and benefits of fibre-like connectivity, and through AirFibre we believe we can achieve this.”
Supersonic AirFibre is expected to bring high-speed, inexpensive, and uncapped connectivity solutions to areas in which traditional fibre installations are not available. Built on unlicensed spectrum, the solution was designed, built and is maintained by MTN’s technology team to deliver a network quality that is in line with MTN’s standards, at affordable rates.
Due to the current major lack of available spectrum, MTN has located unlicensed spectrum – a readily available resource – and combined it with innovative technology now available to effectively leverage open spectrum. This is something that was previously not possible or stable. Supersonic AirFibre will be made available in areas where customers register their demand for the offering.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
The Global System for Mobile Communications (GSMA) 2020 report revealed that Vodacom and MTN launched their first major 5G networks in Sub-Saharan Africa in 2020. The telecoms operators offered 5G mobile and fixed wireless access (FWA) services in several locations across South Africa – this appears to be a welcome development, as the South African government had already assigned temporary spectrum in the 3.5 GHz range in the wake of the Covid-19 pandemic.
5G Network
Obviously, the proximate opportunity to be harnessed for the 5G in South Africa is to use FWA to bridge the gap in fixed broadband connectivity for homes and businesses. According to the report, there have been 5G trial runs in almost all the countries in Sub-Saharan Africa, including Gabon, Kenya, Nigeria and Uganda but the possibility of mass deployment of the 5G network is still not guaranteed, as there are significant levels of unused 4G capacity. Also, the 4G adoption rate is still relatively low, creating opportunities for the operators to increase their stakes in 4G.
As a boost to mop up the unused 4G capacity, the partnership between Safaricom and Google to finance the acquisition of 4G smartphones, provides the desired momentum as low-income consumers pay for 4G devices in convenient and flexible daily installments. According to the report, it is expected that over the next five years, the number of smartphone connections in Sub-Saharan Africa will almost double to reach 678 million by the end of 2025 — an adoption rate of 65%. It is expected that by 2025, there will be a little below 30 million mobile 5G connections in Sub-Saharan Africa, equivalent to almost 3% of total mobile connections.
The mobile market in the region will reach several important milestones over the next five years: half a billion mobile subscribers in 2021, 1 billion mobile connections in 2024, and 50% subscriber penetration by 2025. The achievement of these critical milestones would be predicated on the operators’ commitment in providing reliable infrastructural networks across the region. Between 2019 and 2025, the operators in the region would have expended/invested about the sum of $52billion in infrastructure rollouts.
The GSMA represents the interests of mobile operators worldwide, uniting more than 750 operators with almost 400 companies in the broader mobile ecosystem, including handset and device makers, software companies, equipment providers and internet companies, as well as organizations in adjacent industry sectors.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
Leading retail chain, Pick n Pay has officially launched PnP Mobile – South Africa’s newest Mobile Virtual Network Operator (MVNO). The service will use MTN’s mobile network infrastructure to offer customers prepaid, SIM-based access to services including airtime, data, and SMS. Smart Shoppers will earn data rewards in addition to loyalty points when shopping at any Pick n Pay store countrywide – including Express, Clothing and Liquor stores. They will also be able to earn up to 2.5GB in free data rewards each month.
Richard van Rensburg, Chief Technology and Services Officer at Pick n Pay
Sources say that for every R10 spent in-store, customers will instantly earn 5MB in data. To qualify for this reward, customers will need to link their Smart Shopper card and top up their PnP Mobile SIM card with at least R50 over a 30-day period. Customers will be able to register their new SIM card without any paperwork and within minutes through Pick n Pay’s new paperless RICA facility, expected to launch in 500 selected stores later this year.
“Mobile technology is core to South Africans’ way of life and an essential part of the monthly grocery shop. Our country has a very high mobile phone penetration, but data costs have been a barrier. We believe expanding our services to enter the mobile market will benefit millions of our customers,” says Richard van Rensburg, Chief Technology and Services Officer at Pick n Pay.
“This is an outstanding innovation for our customers, and we’re very excited about the extra benefits they will earn. Innovation has been absolutely central to creating South Africa’s favourite loyalty programme and this new Smart Shopper innovation means that customers walk out our stores with affordable groceries, points on their card and now free data on their PnP Mobile SIM card.”
“Our pricing will be simple, transparent and competitive with other providers plus we’ll be offering substantial free data rewards just by shopping in our stores,” adds van Rensburg.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
MTN Group has been named the ‘Most Valuable African Brand’ by Brand Finance Africa. The ranking ascribes a brand value of $3,3 billion to MTN.
Brand value is said to be the net economic benefit that a brand owner would achieve by licensing the brand in the open market. In its survey, Brand Finance said that “over the last year, Africa’s largest mobile operator has celebrated solid profits and impressive subscriber growth.”
Group CEO of MTN, Rob Shutter
The survey assessed the impact of COVID-19 on the enterprise value of all brands in its survey, compared to their values on 1 January 2020.
It categorised the telecoms sector as ‘limited impact’, which it said meant “minimal brand value loss or potential brand value growth”. This was due to the increasingly important role that mobile operators have played in keeping people connected in the time of the pandemic. In July, Brand Finance named MTN Group the most valuable South African brand, a result of the group’s focus on improving the customer experience for subscribers, as well as uniting 19 000 employees.
MTN has the best mobile network in South Africa, according to findings from the Q3 2020 Mobile Network Quality Report. The report, from MyBroadband Insights, shows that South Africans had an average mobile download speed of 29.16Mbps and an average upload speed of 11.46Mbps.
To determine the best mobile network in South Africa, a “Network Quality Score” out of 10 was calculated for each network using download speed, upload speed, and latency. MTN reigned supreme with a Network Quality Score of 9.68, followed by Vodacom on 5.99, Telkom on 5.16, Cell C on 4.27, and Rain on 3.74.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
Mobile Telecommunications Network (MTN) Group has been forced to exit its operations in the Middle East due to concerns raised as a result of the United States sanctions on Iran. MTN has in the last two years faced series of litigations in the United States over claims that it paid terrorists in Afghanistan and Iran for protection of its equipment, a development the United States sees as counterproductive to its security interests in the region. The telecoms firm said that after careful deliberations on its operations in the region, it has decided to pull out and concentrate on its African markets resolving to simplify its portfolio and exit its Middle Eastern assets in an orderly fashion.
MTN CEO, Rob Shuter,
The group will scrap its interim dividend under a blueprint to navigate the coronavirus pandemic – which posed an unprecedented socio and macroeconomic challenge rendering trading conditions difficult. CEO, Rob Shuter, mentioned strong results during the COVID-19 period in his statement, singling out great performances in Nigeria, Ghana and homebase South Africa.
The company which was founded in 1994, lists operations in Sudan, Syria, Yemen and – as well as Iran and Afghanistan in its Middle East file. The first step towards its new entrepreneurial direction is to sell its 75% stake in MTN Syria. A key undertaking about which the company is already in advanced talks.
Among reasons for divesting from the region, he cited losing money on falling regional currencies, the Middle East’s volatile geopolitics, and problems with Western sanctions, though he did not mention Iran specifically. U.S. sanctions have made it harder to repatriate cash from its Iran joint venture. MTN’s entry into the region has been marred by allegations, which it has denied, that it used bribes to win a 15-year operating licence in Iran and also that it aided militant groups in Afghanistan. The company’s Middle East assets contributed less than 4% to group earnings before interest, taxes, depreciation, and amortization in the first half ended June 30.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
The market dominance presently enjoyed by Africa’s biggest telecoms company MTN in Ghana may head for a stiffer run, which may break their control of the market. This is likely to arise as a result of the new sets of telecoms policies the Ghanaian government plans to implement which analysts say will reduce the dominance of MTN in the country’s telecommunications market.
A statement from the country’s National Communications Authority (NCA) says that there will be an implementation of specific policies to ensure a level-playing field for all network operators within the telecommunications industry. This is because MTN has been declared a significant market power, requiring the regulator to take corrective action to allow more market competition.
Statistics from the NCA showed MTN’s share in mobile data subscriptions accounted for almost 70% of the market from January to March. To correct this, the regulator will implement a series of measures including a favourable connection rate for disadvantaged operators, the setting of floor and ceiling pricing on all minutes, data, text messages and mobile money, and ensure the various operator vendors are not subject to exclusionary pricing or behaviour.
MTN Ghana however said that it is yet to receive any formal notification from the regulator in that regard and was awaiting it to assess the details
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
Group to benefit from efforts to give millions of Nigerians without bank accounts access to financial services.
A subsidiary of MTN Nigeria has been awarded a license by the country’s central bank that would allow it to provide financial services, the telecoms firm said on Monday.
Nigeria announced last year that it would allow telecom companies to provide banking services, aiming to give millions of Nigerians without bank accounts access to mobile money services, a policy that has been successful in Kenya.
SA’s MTN Group, which owns a majority stake in MTN Nigeria, said at the time it would apply for a mobile banking license in Nigeria and planned to launch the service in 2019. Since then, MTN Nigeria listed in Lagos in May in a 2-trillion naira ($5.6bn) debut, which turned it into the exchange’s second-largest stock by market value.
MTN Nigeria’s CEO, Ferdi Moolman, said on Monday its Yello Digital Financial Services (YDFS) unit had been granted a “full super-agent” license by the Central Bank of Nigeria.
“Through the network established by YDFS, MTN is in a position to broaden the availability of financial services for the underserved across the country. This marks a very important first step in leveraging our infrastructure to scale our fintech initiatives,” said Moolman.
“We have also applied for a payment service bank license, which will enable us in time to offer a broader and deeper range of financial services to those communities and we remain hopeful we will receive approval shortly,” he said. He did not give specifics.
MTN runs Nigeria’s biggest mobile phone network serving about 56-million people.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.
This could be a major victory of 2019 for Nigerian startups. For the second time in two years, Interswitch is signaling it is now ready to open its share portfolio up for public subscription. The unicorn startup is riding on the wings of the recent relatively successful listing by MTN Nigeria and Airtel Africa. This is seventeen years down the line for the digital payment solution.
Here Is What You Need To Know And How To Get Ready For Interswitch’s Shares
This could be a reality this time. Interswitch has already hired JPMorgan, Citigroup, Standard Bank for the share sale.
This listing could value Helios’s Interswitch at up to $1.5 billion
The listing would happen on the Nigerian Stock Exchange at the same time it is happening on the London Stock Exchange.
JPMorgan Chase & Co., Citigroup Inc., and Standard Bank Group Ltd. are among the firms working on an initial public offering, which may value the financial technology company at $1.3 billion to $1.5 billion, according to reliable sources.
Interswitch had earlier shelved its plans to list in 2016 after the price of crude oil fell dramatically, causing a contraction in Nigeria’s economy.
This Listing Is Drawing An Unclear Path For Africa’s Digital Startups
Just recall Fawry, the Egyptian startup poking at IPO. The startup was acquired by Helios Investment Partners halfway into its journey. Interswitch, originally founded by Mitchell Elegbe also sealed the same fate in 2011 when Helios Investment Partners, a private equity firm dedicated to making growth investments across Africa bit two-third hard into the startup and subsequently acquired a majority stake in the payment startup. Since then, Helios Investment has become Interswitch’s largest shareholder.
This would, of course, leave a big question on the longevity of African-led startups, and whether the popular exit strategy most startups in Africa are resorting is not acquisition. Helios is among several private funds that specialize in investing in African assets as the economic recovery taking place across the continent bolsters investor sentiment and infrastructure plans.
A Look At Interswitch
Interswitch facilitates the exchange of value between service providers by providing a secure shared payment infrastructure and integrated message broker solutions for financial transactions, eCommerce, telecommunications value-added services, eBilling, payment collections, and disbursements. The company developed and administers Verve, the leading card scheme in Nigeria.
The displayed data on popular payment methods in stores, restaurants and other points of sale shows results of the Statista Global Consumer Survey conducted in Nigeria in 2017.
The Verve card, which is currently issued by banks in Nigeria, is the first and only chip and PIN card accepted across multiple payment channels including ATMs, Point of Sale (PoS) terminals, online, mobile and at banks, and enjoys the largest range of value-added services.
The company has been at the forefront of the development and growth of the e-payment sector in Nigeria, which is evidenced by its unique position of being the only switching and processing company connected to all banks in the country as well as to over 10,000 ATMs and 11,000 PoS terminals.
Aside from this, the company is the leading processor for MasterCard and the market leader in merchant acquiring/PoS, a segment that is still emerging and has the potential for tremendous growth in Nigeria.
The completion of the switchover from magnetic strip cards to chip and PIN cards in 2010, is expected to further accelerate growth and usage of e-payments across the country. Nigeria is the first country in Africa to have completed this migration and is one of the few countries in the world to have completed the migration under a year.
Interswitch’s dual listing in the U.K. and Nigeria is merely repeating what Airtel Africa Plc, the wireless carrier and a subsidiary of Indian parent Bharti Airtel Ltd did recently by simultaneously listing on the London and Nigerian Stock Exchange.
Recall that Jumia Technologies AG, dubbed the Amazon of Africa, listed in New York earlier this year, while Dubai-based payments firm Network International Holdings Plc went public in London. All of these recent events may not be unconnected with the recent invitation by the London Stock Exchange to investors around the world, particularly in Africa to come to invest in the Exchange.
Officials from the London Stock Exchange recently completed a roadshow in a bid to boost the LSE’s 115 African listings. The exchange is banking on partnerships with African exchanges, including those in Nigeria and Kenya, for dual listings, according to Director of Emerging Markets and International Markets Ibukun Adebayo.
“If a company has an international strategic growth plan, then the LSE is a perfect vehicle for the company to come and list,” Adebayo said Tuesday in an interview in Nairobi. “If the company is purely domestic and it needs to raise money in the domestic market and increase the number of investors available to it, then the LSE can help work with local partners.”
Firms already included in the LSE’s listing of Companies to Inspire Africa, which the exchange describes as the continent’s “most inspirational and dynamic private, high-growth companies are:
South Africa: Ad Dynamo International, Coega Dairy, Compuscan
Nigeria: Afriland Properties, Alpha Mead Group, ARM Life
Ivory Coast: Azalai Hotel Abidjan, Cipharm SA, Clinique Procréa, Agriex Côte d’Ivoire
Angola: Aldeia Nova, Angola Energy Greentech, Kora Angola, WEZA
Egypt: Cairo Three A, Carbon Holdings, Eagle Chemical Group, Sambo Metals
Morocco: 10 Rajeb, Bricoma, Damandis Maroc, Ama Detergent, Medafrica Systems
There are 360 companies from 32 different countries across the continent, boasting an impressive average compound annual growth rate of 46 percent, up from 16 percent last year, according to Global Finance.
It says on average, each firm employs over 350 people, with an average compound annual employee growth rate of 25 percent.
Charles Rapulu Udoh
Charles Rapulu Udoh is 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 organizations 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.
