News (1583)
With the acquisition, Gozem enters another segment of the tech ecosystem while accelerating its growth on the continent.
Beninese fintech startup Moneex announced earlier today its acquisition by Togolese mobility solution Gozem. The amount of the transaction was not disclosed but the acquisition aims to launch a financial services arm, Gozem Money, in French-speaking African countries.
“Expanding our financial services through the Gozem Money solution represents the next frontier in our ongoing commitment to delivering essential digital services to our users across Africa. With the addition of the Moneex Team to our ranks, we are poised to accelerate the introduction of our innovative fintech offerings to the market,” said Martial Konvi (photo, left), Global Head of Product at Gozem.
Since its creation, Gozem has raised $11.7 million to accelerate its growth on the continent. The e-mobility startup, launched in 2018 and based in Togo and Singapore, is present in several French-speaking African markets such as Benin, Togo, and Cameroon. It has managed to add various services, such as parcel delivery, food ordering, and e-commerce, to its mobile app, becoming a super app.
Meanwhile, Moneex, the fintech created by Florent Ogoutchoro and Henry Ukoha, offers its customers multi-currency accounts, enabling them to convert funds at the best rates, receive international payments, and pay for goods and services worldwide.
The financial technology sector is the most attractive in Africa. Between July 2021 and June 2023, African fintechs raised $2.7 billion, according to the report "Finnovating for Africa: Reimagining the African financial services landscape 2023" published by Disrupt Africa.
Adoni Conrad Quenum
In recent years, data center providers have stepped up investments in the African market. With this new investment, MainOne wants to attract additional clients and gain more market share.
Nigerien data center provider MainOne announced on Monday, November 6, the commissioning of a new data center in VITIB (Village des Technologies de l'Information et de la Biotechnologie) located in the town of Grand-Bassam in Côte d'Ivoire. The aim is, among other things, to meet the growing demand for digital services, connectivity, and data storage in Côte d'Ivoire and French-speaking West Africa.
"With this launch of our new data center in Cote d’Ivoire, we are entering an exciting phase of transformation for businesses as it delivers a great opportunity to welcome more customers into our rich digital ecosystem, interconnected to the major digital players in the region and delivering 100% uptime connectivity to the internet. We expect this state-of-the-art facility to become a catalyst for digital innovation, providing a robust infrastructure for enterprises to thrive, and further reinforcing Cote d’Ivoire as the digital hub for the Francophone West African region," said Etienne Kouadio Doh, MainOne’s Country Manager in Cote D’Ivoire.
Like many cloud service providers, MainOne is capitalizing on the growing potential of the African market. The Nigerien provider, which set up its first data center on the continent in 2019, wants to conquer new markets. Hence the strategic choice of Côte d’Ivoire, which has become the favorite destination of many multinational companies eying the West African region, to host its data center. In October 2021, the French group Orange and the American Oracle signed a partnership agreement to build several African cloud regions. Côte d’Ivoire was unsurprisingly on the list of countries chosen for the project. In November 2022, neutral data center provider Raxio Group announced the construction of its first infrastructure in Grand-Bassam in the framework of a project that aims to build more than a dozen similar infrastructure in Africa by 2025.
Let’s note that MainOne is a subsidiary of Equinix, a global provider of digital infrastructure with more than 240 data centers in 32 countries on five continents.
Adoni Conrad Quenum
In 2018, Senegal launched a program to rehabilitate its airports. The aim is to improve the passenger experience and position itself as a leading air hub.
Cheikh Bakhoum, director general of Senegal Numerique (SENUM SA), the national agency overseeing public digital infrastructure, and Abdoulaye Dieye, CEO of Blaise Diagne International Airport (AIBD SA), signed a partnership agreement in Dakar on Monday, November 6.
The partnership aims to implement infrastructure solutions to improve connectivity and facilitate the digital transformation of 13 airports in Senegal.
Under the 3-year cooperation agreement, SENUM SA will provide AIBD with fiber optic connectivity, state-of-the-art data centers, and other services. SENUM SA will also contribute its expertise in auditing the information system, supporting AIBD's human resources in supervising installations, and guaranteeing system security in the event of attacks.
The signing of this partnership agreement is part of the program to rehabilitate Senegal's regional airports (PRAS) launched in 2018 by President Macky Sall. The program aims to make Senegal a leading air hub in Africa.
"I am pleased to welcome the director general of Senegal Numerique today, as state institutions must operate in seamless harmony. We are confident that this agreement is timely and will effectively address the imperative of upgrading our airports to meet industry standards, while simultaneously implementing robust IT systems, security protocols, and data backup measures," said Abdoulaye Dieye.
Samira Njoya
Global finance has gone digital to prioritize convenience, efficiency, and speed. This choice has yielded positive effects across various sectors, particularly in commerce. In Africa, financial experts have also embraced this transformation but numerous challenges persist.
The fifth edition of the Next Fintech Forum will be held in Abidjan, Côte d’Ivoire, on November 16-17, under the theme "Fintech and commerce: shaping African trade." Organized at the Radisson Blu by the Africa Fintech Forum, the two-day event will bring together several experts, entrepreneurs, and enthusiasts from e-finance, commerce, finance, logistics, and many other related sectors.
They will discuss the impact of fintech on African commerce, and share their knowledge, ideas, and experiences in using financial technologies to stimulate business growth, enhance the customer experience, and strengthen the competitiveness of African trade on a global scale.
Speaking about the objectives of the Next Fintech Forum, Alex Sea, President and CEO of the Africa Fintech Forum, states: "In recent years, there has been a surge in the development of new business models, groundbreaking technologies, and customer-centric experiences that are revitalizing the global financial landscape. Fintech, which is the application of technology to deliver innovative financial solutions, is experiencing unprecedented growth. [It is] an attractive and dynamic sector that needs to be developed and structured, particularly in French-speaking Africa. Mindful of the disparity between a thriving, rapidly expanding industry and local infrastructures that may not be adequately equipped to harness the full potential of Fintech, our aim is to effect positive change.”
Over the past five years, the fintech sector has attracted the most interest from venture capitalists and angel investors in Africa. Of the $6.5 billion raised by African startups in 2022 –up 8% compared to 2021 according to Partech Africa– the fintech sector alone raised $1.9 billion (29.23% of all funds). However, fintechs have not gained credibility or evolved their services sufficiently to meet the new needs of African markets.
In his report "Limits to the expansion of African fintechs", Idriss Linge, business journalist and editor-in-chief of Agence Ecofin, explains that fintechs need to overcome a number of challenges if they are to prosper further on the continent: they need to go beyond money transfer, payment or even small-scale credit.
With the African Continental Free Trade Area (AfCFTA) becoming effective in January 2021, numerous commercial and financial opportunities are emerging on the continent. Opportunities to which fintechs could respond effectively through innovative solutions that will stimulate business growth and boost the competitiveness of African trade on a global scale.
During the last two decades, approximately forty African satellites have been successfully launched into orbit, significantly enhancing telecommunications capabilities and territorial surveillance across the continent. With several more satellites currently in the developmental phase, scheduled launches are anticipated within the upcoming months.
On Wednesday 1ᵉʳ November, the Mauritius Research and Innovation Council (MRIC) and the Indian Space Research Organisation (ISRO) signed a memorandum of understanding to develop, launch, and operate an Earth observation satellite for Mauritius.
The partnership, which runs over 15 months, also takes into account the training of MRIC engineers at ISRO's facilities in India for the design and development of the satellite platform, as well as its associated systems and primary payload.
The new MoU follows a recent visit to Bengaluru by Mauritius' Minister of Information Technology, Communication and Innovation (MITCI), Darsanand Balgobin (photo, right), and MRIC Board Chairman Dr Kaviraj Sharma Sukon. The delegation met with ISRO officials and discussed the technical details and application possibilities for putting a joint satellite into orbit.
The future joint microsatellite will be designed for remote sensing from Low Earth Orbit (LEO). It will enhance Mauritius's earth observation capabilities and the help prevent and combat bushfires, floods, and erosion, and develop agriculture, among other things. On completion, all corresponding in-orbit operations will be carried out jointly by ISRO and MRIC, using MRIC's ground station.
India was not randomly chosen as the technical partner of that project. Several years ago, it signed technological cooperation agreements with four African countries, including Mauritius. The country is committed to providing substantial support for the scientific and technological development of these countries.
Samira Njoya
To accelerate the realization of their digital ambitions, governments are teaming up with reliable and experienced partners to get technical support for some projects.
On Wednesday, November 1, the Eswatini Communications Commission (ESCCOM) and the United Nations Development Programme (UNDP) signed a memorandum of understanding at the United Nations House in Mbabane.
According to a UNDP press release, the agreement aims, among other things, to improve universal access to affordable ICT services; provide digital services and other government functions; and support the effective implementation of the national digital strategy developed under ESCCOM's leadership.
"This agreement will play a pivotal role in accelerating our progress towards achieving the Sustainable Development Goals. These goals encompass vital indicators such as reducing youth unemployment, bolstering food security, broadening access to ICTs, digitizing services, and fostering financial inclusion throughout Eswatini," said Mvilawemphi Dlamini (photo, left), ESCCOM's Chief Executive Officer.
The agreement calls for the creation of iHubs (innovation hubs) and digital technology action centers to deepen digital inclusion and improve youth employability. These centers will be designed as one-stop shops for ICT training, business development, business relations, financial services, and business mentoring.
The agreement is part of ESCCOM's efforts to develop digital technology and reduce the digital divide in the country. In June, ESCCOM announced the signature of a telecoms agreement with the Mozambique Communications Regulatory Authority (INCM). Ultimately, the agreement with the UNDP will, among other things, help reduce the digital divide in Eswatini, with a focus on marginalized people, notably young people, women, and the disabled.
Samira Njoya
The African continent has a number of assets to help it become a leader in the field of artificial intelligence, including its young population. However, it needs to groom those assets to be able to capitalize on available opportunities.
The UK and partners have pledged £80 million ($100 million) to accelerate development in several African countries through the use of artificial intelligence (AI). The investment was announced, by the British government, at the AI Safety Summit held in England from November 1 to 2.
The first phase of the project, which will initially focus on sub-Saharan Africa, aims to, among other things: create or develop at least 8 responsible AI research labs in African universities; help at least 10 countries create robust regulatory frameworks for responsible, fair and safe AI; help reduce barriers to entry for African "AI-innovators" into the private sector.
"This collaborative initiative is of paramount importance as it empowers African countries to become producers, not just consumers, in the AI revolution, ensuring that we are at the forefront of shaping our own future and driving sustainable progress across the continent," said Paula Ingabire, Rwanda's Minister of Information Technology and Innovation.
According to a UK government's press release, this new collaboration is part of a wider UK commitment to harnessing the opportunities of AI and “ensure its use as a force for good.”
As part of the partnership, AI scholarships will be awarded to students at African universities. The collaboration will also support investment in the creation of data models ensuring an accurate representation of Africa. In addition, it will enable the establishment of responsible AI governance frameworks to manage the potential risks associated with its use.
Samira Njoya
Over the past few years, African governments have multiplied initiatives to combat insecurity. The integration of digital technology is likely to bolster those initiatives.
On Wednesday, November 1, the Ugandan government launched its Intelligent Transport Monitoring System (ITMS), known as digital license plates. The system aims to integrate digital tracking chips into all car license plates registered in the country.
"The Intelligent Transport Monitoring System, which will work in conjunction with a network of cameras and sensors, is designed to monitor traffic flow, identify and track vehicles, and detect incidents in real-time. This collective effort aims to make our roads safer for everyone," said Minister of Security Jim Muhwezi.
The said project is the result of a 10-year agreement signed in 2021, between the country's government and Russian company Global Security JSC. Under the agreement, the Russian company will provide a system that involves fitting Global Position Tracking (GPS) chips in vehicles at the owners’ expense.
The project is being piloted by the Ministry of Public Works and Transport and the Ministry of Security. The first phase aims to equip all government vehicles with these chips. The second phase, scheduled to start on February 1, 2024, will cover all other vehicles and motorcycles.
Through this project, the government aims to considerably reduce insecurity in the country. To this end, integrated plates with a security chip will be synchronized at the time of registration, with a security device capable of indicating the vehicle's location in real time. The project will also create various employment opportunities, with ongoing training initiatives in Uganda.
Samira Njoya
In line with its digital ambitions, the Nigerian government wants to connect 70% of the population to broadband Internet by 2025. The executive, in collaboration with its partners, is actively implementing measures to accomplish this crucial objective.
Tizeti Network Limited, a solar-based internet service provider, announced on Wednesday, November 1 its plan to connect 15 Nigerian states thanks to long-term funding from the Chapel Hill Denham Nigerian Infrastructure Investment Fund (NIDF).
"Chapel Hill Denham is excited to partner with Tizeti in the expansion of a fast, reliable broadband network across Nigeria. The digital economy is a key strategic pillar for Nigeria to accelerate its economic and social development, and providing access to affordable internet services is crucial to achieving the true potential of digitization," said NIDF CEO Anshul Rai.
The new initiative is in line with NIDF's strategy to fund partners to support the acceleration of digital infrastructure development in Nigeria. The aim is to support the government in its vision of achieving 70% broadband penetration by 2025. For Tizeti Network Limited, the funding supports its expansion objectives in Nigeria, where the company currently serves over 3 million subscribers.
According to Tizeti Network Limited executives, the funding will build the last-mile digital infrastructure that will shift Internet capacity to other Nigerian states and “catalyze sustained development, value creation, improved connectivity, and a deeper and wider digital inclusion net.” As a reminder, in February 2023, the country had 156.9 million Internet subscriptions, according to the regulator. The broadband penetration rate was 48.49%.
Samira Njoya
In contrast to Rwanda, Nigeria and Kenya currently lack a national AI strategy. Nonetheless, the three countries were invited to an international meeting aimed at a framework to oversee this transformative technology.
On Wednesday, November 1, at the AI Safety Summit in London, England, Nigeria, Kenya, and Rwanda signed the Bletchley Declaration, a global convention on AI-related risks. The aim is to collectively understand and manage the risks of this technology and to ensure that it is developed and deployed safely and responsibly.
"We must acknowledge that our world is experiencing significant transformation driven by the increased application of digital technologies. [...] AI at its very core offers our generation a historical opportunity to create ubiquitous access to insights and intelligence for global development. However, we must remain conscious of the need to ensure the safe ethical, and inclusive development of this phenomenon," said Bosun Tijani, Nigeria's Minister of Communications, Innovation and Digital Economy.
Since the advent of ChatGPT, an AI-based conversational agent developed by Californian technology firm OpenAI, solutions using this technology have proliferated around the world. Firms such as Google, Microsoft, Meta, and Amazon have also positioned themselves in this segment, and have stepped up their investments. They have signed several partnerships with AI companies to accelerate the development of their in-house technology or invest in promising solutions. However, authorities at various levels are growing concerned about the dimension of AI technology.
Last week, the United Nations decided to set up an advisory committee on AI. "AI could power extraordinary progress for humanity.[...] AI could scale up and amplify the work of Governments, civil society, and the United Nations across the board. [...] But all this depends on AI technologies being harnessed responsibly and made accessible to all — including the developing countries that need them most,” said Antonio Guterres, Secretary-General of the United Nations, who attended the second day of the AI Safety Summit in London, yesterday.
The United States, the United Kingdom, the European Union, and China are among the signatories of the Bletchley Declaration.
Adoni Conrad Quenum
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By providing a secure and efficient means of verifying individuals' identities, digital IDs are essential tools for advancing economic growth, promoting transparency, and safeguarding human rights throughout Africa.
The Kenyan government has kicked off the pilot phase of its digital ID initiative and Maisha Namba program. This was disclosed during a recent digital ID briefing, on November 1, by Professor Julius Bitok, the Principal Secretary of Immigration and Citizen Services. The initial phase is focused on young individuals who are applying for their first identification cards as they turn 18 years old.
As part of this initiative, the government plans to transition from the existing second-generation IDs to the new Maisha Card. In that context, the pilot phase aims to identify and address any potential issues to ensure a smooth nationwide rollout.
Julius Bitok noted that "All Kenyans turning 18 years in whichever part of Kenya will be issued with a Maisha Card on a pilot basis. This way, we will establish whether there are any errors or issues before we do the penultimate launch."
The Maisha card is set to replace current national IDs and will encompass various personal identifier data over a transition period of 2 to 3 years. These digital IDs will enable convenient transactions using iris and fingerprints.
President William Ruto previously announced that Kenyans will receive the new digital identification cards starting in December. Also, the official launch of the digital ID platform, initially slated for October 2, was postponed due to unforeseen circumstances.
Over 100,000 booklets containing frequently asked questions about the new identification system have been printed to provide information to Kenyan citizens.
Hikmatu Bilali
The coronavirus pandemic accelerated digital transformation initiatives across Africa but, some countries, like Senegal, were already embarked on that path long before the pandemic. They are still pushing ahead with numerous initiatives.
Senegal's Ministry of Communication, Telecommunications, and Digital Economy, in partnership with the German international cooperation agency GIZ, unveiled GovStack, a platform that dematerializes administrative procedures, at a workshop organized by Sénégal Numérique (SENUM) on Thursday, October 26, and Friday, October 27. GovStack will enable the dematerialization of over 800 administrative procedures.
"Digitization means we can move faster and make things easier for the administration. It's a platform that's available and free to everyone. We are helping the Senegalese government to understand the tool, its scope, and its benefit for the administration," said Katharina Noussi, Program Manager at GIZ.
Senegal kickstarted the digitization of its administrative services in 2017. Since then, authorities have multiplied partnerships and initiatives in the health, justice, and administrative sectors. In 2022, SENUM signed an agreement with the mayors of the 19 communes in the Dakar department to digitize civil status records. Last July, XOF8 billion (around $13 million) was allocated to set up the 2023-2027 Digital Justice Strategy, to build a digital judicial public service that will benefit all players and users in the sector.
The digitization of various administrative procedures should, among other things, improve the accessibility of public services to users, the efficiency and management of these services thanks to the automation of various tasks, and the exchange of data between government departments.
Adoni Conrad Quenum
In the last decade, high-speed internet consumption has grown significantly across Africa. With Covid-19 bringing about new usages, the demand has further increased. Telecom operators are actively mobilizing to efficiently meet these heightened requirements.
The CEOs of six major telecoms groups operating in Africa - Orange, MTN, Airtel, Vodacom, Axian, and Ethio Telecom - have pledged to develop digital inclusion on the continent. On Tuesday, October 17, at the Mobile World Congress (MWC) in Kigali, Rwanda, they expressed their willingness to continue investing in the local telecoms market during an exchange with Paul Kagame, President of the Republic of Rwanda, host of the MWC and also Chairman of the Board of Directors of Smart Africa.
In a joint statement, Jérôme Hénique, CEO of Orange Middle East and Africa, Ralph Mupita, CEO of MTN Group, Segun Ogunsanya, CEO of Airtel Africa, Shameel Joosub, CEO of Vodacom Group, Frehiwot Tamru, CEO of Ethio Telecom, and Hassanein Hiridjee, CEO of Axian Group, said: "Together, we passionately believe in the power of mobile as a catalyst for economic and social inclusion across Africa. We openly invite other African Heads of state to engage with us in the search for solutions focused on deepening digital and financial inclusion on the continent for the benefit of all African citizens."
The telecom groups have already identified potential solutions that can facilitate comprehensive coverage of the continent with a high-quality mobile broadband network, ensuring affordable access to services. But for these solutions to materialize, they stressed the need for African governments to get involved and engage in in-depth collaboration.
Telecom operators are calling for tax and policy reforms. They believe that by reducing the amount of taxes on different segments (equipment, services, accessories, telephones, etc.), their operating costs will be positively impacted. The resulting reduction in expenditure will strengthen investment capital for the development of telecoms infrastructures across the continent, and support consumption. The same effect should be induced by infrastructure sharing, national roaming, and regulatory policy reform, among others.
Telecom groups are also calling for regulatory support for new models of digital infrastructure financing. The World Bank estimates that $100 billion will be needed to achieve universal connectivity in Africa by 2030. The necessary funds cannot come from telecom companies alone.
Last but not least, climate-friendly infrastructure is an investment that telecom groups are more than willing to make. Given the beneficial impact of solar energy on the operating and maintenance costs of telecom towers and other infrastructures and its contribution to companies' carbon footprints, the CEOs of Orange, MTN, Airtel, Vodacom, Ethio Telecom, and Axian also expressed the need for concerted regulatory policies that promote access to green solutions.
Mobile operators claim to have invested over $70 billion, over the past 10 years, in the construction of mobile infrastructure in Africa. They estimate their annual capital expenditure in sub-Saharan Africa at between $6 and $8 billion, or nearly 20% of their revenues. Although this action today gives nearly 85% of the African population access to mobile broadband connectivity (compared with a global average of 95%), more than 680 million people remain unsubscribed to mobile broadband services either because of the high cost of access, or the inaccessibility of suitable phones.
According to the six groups, the telecoms industry currently contributes 8.1% to the Sub-Saharan region's Gross Domestic Product (GDP). That's around $170 billion. By 2023, the target is to reach $210 billion by raising the mobile Internet usage rate from the current 33% to 50% by 2030.
The 2Africa cable, spanning 45,000 kilometers, is poised to connect 33 countries across three continents, enhancing connectivity for more than three billion individuals.
The 2Africa subsea cable from the eponymous consortium led by the American company Meta has landed off the coast of Dakar in Senegal. Its installation began on Tuesday, October 31, with the arrival of a cable ship from Alcatel Submarine Networks (ASN), a Nokia subsidiary entrusted with the construction of the cable. ASN will carry out the installation works in collaboration with Sonatel, the telecommunications firm overseeing the construction of 2Africa's landing station in Senegal.
"We are in the digital age. Therefore, we anticipate a more than double surge in 4G traffic in the next five years, alongside the emergence of 5G, which will further catalyze an exponential spike in usage. Therefore, it is imperative to equip Senegal adequately to meet the escalating demands from our customers," said Sékou Dramé, CEO of Sonatel.
The introduction of the 2Africa cable reinforces Senegal's domestic broadband infrastructure. Presently, the nation is linked to four international fiber optic submarine cables, namely SAT-3 (South Atlantic 3), ACE (Africa Coast to Europe), ATLANTIS-2, and SHARE (Senegal Horn of Africa Regional Express). Nonetheless, recurrent outages across these networks are causing disruptions to internet services across the country and in neighboring regions.
In early August, cuts to the ACE, WACS, and SAT-3 cables resulted in internet outages and slowed connectivity, for weeks, in several African countries, including Senegal.
The connection to a new cable will improve connectivity, offering better business opportunities, enhancing investment competitiveness, and stimulating growth by accelerating progress in several sectors, notably education and health. Senegal has 19.2 million Internet subscribers, representing a 108.31% penetration rate, according to the latest statistics from the Regulatory Authority for Telecommunications and Post (ARTP).
Samira Njoya