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Happy new month ☀️
Today, Nigerians are kickstarting a ten-day protest against hunger and food inflation. A loaf of sliced bread that used to cost ₦700 a year ago now costs ₦1,900. As living costs soar, Nigerians are seeking creative alternatives to staple—like this video on watermelon pepper stew.
The Tinubu-led government has insisted that the protests are premature and has tried to ensure the protests don’t happen. If you’re going out there today, stay safe!
Telco
MTN Nigeria suffers $312.4 million loss
MTN Nigeria may be asking investors and stakeholders to take their patience further after it posted another Q2 2024 loss. The company has now lost ₦519 billion ($312.4 million) in H1 2024—six times more than the ₦85 billion ($51.1 million) it lost in H1 2023.
MTN’s financial woes are largely due to Nigeria’s unstable currency, which has driven operating costs up. The telco has significant dollar-denominated costs, including its tower contract with IHS Towers.
While revenue grew to ₦1.53 trillion ($921 million), costs also increased. The cost of sales jumped 33% to ₦252 billion ($151.7 million), with operating expenses hitting ₦738 billion ($444.3 million).
To reduce its losses, MTN is reducing its dollar-based costs by partnering with tower company, ATC Nigeria, to supply 2,500 towers in 2025 following its scuffle with IHS towers—a deal believed to be valued in naira. Additionally, MTN is joining other telcos seeking regulatory approval for price increases in tariff plans in hopes of buffering the revenue base.
Despite its operating financial woes, MTN’s customer base continues to grow. The company now has 79.4 million mobile subscribers and 5.5 million mobile money users.
Data revenue (₦727 billion) has overtaken voice revenue (₦632 billion), as customers embrace cheaper internet calls over voice plans. One hour on a WhatsApp call, for example, takes just 300MB, which costs about ₦200, but one hour on a voice call costs twice as much—and the allure is particularly in making international calls at cheap data rates.
Read Moniepoint’s 2024 Informal Economy Report
89% of businesses in the informal economy pay levies and market fees. The informal economy is typically described as untaxed, but is that true? Click here to find out more.
Telco
Inside LH Telecoms’ takeover of 9mobile
Remember the iconic “0809ja for life” advert featuring singer Banky W that rocked Nigeria’s advertising scene in 2008?
With that ad, Etisalat entered the Nigerian telecoms market with flashy adverts, strong service quality, and the “0809uchoose” campaign that allowed Nigerians to choose their preferred mobile number.
A reversal of fortunes was to come after its parent company, Etisalat UAE, could not pay off a $1.2 billion loan it owed to banks in 2017. Etisalat UAE pulled out of the Nigerian market.
In 2018, the company was acquired by Teleology Nigeria Limited, and Etisalat became 9mobile. The move didn’t stop the telco from losing 8 million subscribers in the years that followed.
Now, powers have changed hands again at 9mobile. The company was just acquired by mystery firm LH Telecommunications Limited. Talks for this deal began last year and were finalised on July 26, 2024, after the Nigerian Communications Commission’s (NCC) approval.
While the takeover was marked with internal conflicts, newly-appointed board chairman and founder of Tak Group of Companies, Thomas Etuh quickly proved that he meant business as 9mobile grew by 400,000 subscribers in the second half of last year.
The struggling telco also appointed CEO Obafemi Banigbe who now has the tough job of restoring the company to its glory days.
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Funding
Helios raises $200 million for Africa-focused climate fund
Despite the funding downturn, climate-led startups have received substantial investments. In 2023, these startups raised one-third of the total investment. This year, climate tech startups are currently leading African startup funding, with $325 million of the $1 billion raised so far.
Despite climate tech leading startup funding, Africa still lags behind other continents in terms of global energy investment. The continent only receives 3% of global energy investment.
Helios Investment Partners LLP, the biggest Africa-focused private investment plan taking a step to bulk that trend. The firm has partnered with Gaia Fund Managers to raise an initial $200 million to create the biggest Africa-focused climate fund. The fund has a target of $600 million.
The fund will invest in renewable energy and drought-resistant agriculture on the continent. The fund will focus on investments in clean energy, sustainable agriculture, eco-friendly transportation, resource recovery, and innovative technologies that accelerate the transition to a low-carbon economy. Ghana’s SolarTaxi, Zimbabwe’s NeedEnergy and Kenya’s Octavia Carbon are a few startups on the continent that fit Helios’ bill.
With over 600 million Africans still without electricity and billions more relying on harmful cooking methods, the need for sustainable energy solutions is more urgent than ever. This fund aims to invest in businesses that can help the continent transition to a clean energy future.
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Mobility
Ogun state plans for battery swap stations
“Electric vehicle or Combustion engine?” I’d wager that will be the next top debate long after the Messi vs Ronaldo tyres out. While you can still hear the rumble of traditional engines across the street, a quiet electric revolution is brewing. And startups are revving up to dominate the continent’s EV market.
Last year, Possible EVs set up shop to produce up to 10,000 EVs annually in Nigeria. Spiro, an e-mobility company, also signed a $63 million debt financing to fund two electric motorcycle assembly and battery manufacturing plants in Benin and Togo in 2024. Roam, an EV company recently introduced Kenya’s first locally manufactured electric bus.
Last year I also wrote about Lagos testing out electric vehicles for electric transport.
And now, Ogun state, another Nigerian state will launch its Electric Bike Initiative with three battery swap stations at the state’s capital.
Each station can charge 24 batteries simultaneously. The charging stations will be located at MKO Abiola Stadium, Pansheke Skating Ground, and Oke Sokori. The Electric Bike Initiative is part of a broader e-mobility programme that first introduced CNG-powered buses in the state last year.
While Ogun state is taking steps towards the adoption of EVs, there are concerns about the deplorable road network in the Southwestern state. The internet is littered with complaints by citizens of the state about the deplorable road networks in different parts of the state.
Potholes are minefields for EVs, which demand smooth surfaces to perform optimally, so Ogun state may need to adjust its infrastructural gaps and develop better road networks to fully adopt EVs.
Crypto Tracker
The World Wide Web3
Source:
|
Coin Name |
Current Value |
Day |
Month |
|---|---|---|---|
 Bitcoin |
$64,932 |
– 2.05% |
+ 5.04% |
| Ether |
$3,236 |
– 1.42% |
– 5.06% |
 Hooked Protocol |
$0.052 |
– 2.64% |
– 7.48% |
| Solana |
$173.32 |
– 3.30% |
+ 17.60% |
* Data as of 22:55 PM WAT, July 31, 2024.
Events
- You can still get an early bird ticket to the second edition of TechCabal’sMoonshot Conference! From October 9–11, 2024, at the Eko Convention Centre, Lagos, Nigeria, you can join Africa’s biggest thinkers and players like Iyin Aboyeji, Wiza Jalakasi, June Angelides, Kola Aina on a global launchpad for change. If you want to join these stakeholders in Africa’s tech ecosystem for three days of insightful conversations, then get an early-bird ticket to Moonshot 2024 at 20% off.
- Join the 24 Fintech Africa Roadshow Webinar! We’re excited to invite you to our upcoming webinar on Monday, July 29th at 3:00 PM WAT. Discover opportunities for African technology companies at the 24 Fintech Summit, happening from September 3 – 5, 2024, in Saudi Arabia. Speakers include leaders from the fintech industry, providing insights on global fintech trends and opportunities. Don’t miss out on this chance to connect and learn. Register Now.
- Join Career Brunch 2024 on August 17, 2024, in CcHUB with successful professionals from diverse fields and beyond for an exclusive (physical) career hangout for all professionals. Whether you’re a 9-5er, entrepreneur, founder, or young and upcoming professional looking to climb the career ladder, scale your business or transition, Career Brunch has something for you. This is your golden ticket to connect with industry leaders and professionals from MTN, CcHUB, McKinsey, Spotify etc., gain invaluable insights, and supercharge your career trajectory. Get your ticket at www.tix.africa/thebrunch.
You should definitely read these 👇🏾
Written by: Emmanuel Nwosu & Faith Omoniyi
Edited by: Muyiwa Olowogboyega & Timi Odueso
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