Broadcasting
True financial inclusion calls for smaller markets to receive equal attention to larger ones
By John Ngari, Director, Africa MNOs at Onafriq
The potential for mobile money and digital payments to drive financial inclusion is immense. We can see this potential being unlocked on the African continent as it accounts for 70% of the world’s $1 trillion mobile money value and registered a 12% growth in mobile money accounts to 1.75 billion in 2023.
John Ngari,
This is opening a number of new opportunities for economic growth and development as more robust and connected payment networks are breaking down geographical barriers, opening up access to new markets and enabling anyone to send and receive payments quickly and easily from and to anywhere in the world.
However, these significant benefits are largely being realised and felt in Africa’s larger, and key, markets such as Nigeria, South Africa, and of course Kenya- where mobile money was first launched and popularised on the continent. While these markets have reached greater levels of digital payments maturity, smaller and more underdeveloped markets are often passed over, leaving many still excluded from economic participation and financial freedom.
And yet, the truly transformative power of mobile money and digital payments can be most realised in these overlooked economies where the reliance on cash, a lack of traditional bank accounts due to limited infrastructure and access, and the substantial penetration of smartphones and increasing internet connectivity has created the ideal confluence of circumstances that will pave the way for a more inclusive and resilient financial future.
Realising the enabling power of digital payments
The biggest drivers of mobile money adoption in Africa is its accessibility and ease of use. Unlike traditional financial services, there’s largely no need for extensive paperwork, a credit and financial history, or a physical presence within a brick-and-mortar branch in order to gain access to these services.
This low barrier to entry, along with mobile money’s ability to enable economies beyond just transactions and empower both individuals and enterprises, makes it particularly impactful for underserved markets. Within these regions, mobile money and the digital payments ecosystem has the power to serve as catalysts for economic growth, poverty reduction, and enable marginalised communities with the financial freedom to manage their day-to-day lives, start or expand their businesses, and invest in their futures.
A concerted effort towards a single goal
It’s important that all levels of an economy work towards achieving the crucial objective of financial inclusion. Collaboration is a key component in creating and maintaining an environment that creates more opportunities for inclusive growth and ensures economic resilience.
Not only do governments play a pivotal role in developing and implementing the policies and regulations that foster a supportive framework for financial services, but investment from both the public and private sectors are essential to building the necessary digital payments infrastructure that will underpin financial inclusion on the continent. Meanwhile, fintech firms can continue to drive innovation in this space that will achieve the desired convenience, speed and accessibility within the payments space.
We can see this value already starting to be realised across smaller markets like Eswatini where the Central Bank established a FinTech unit to spearhead the development of digital payments in the country in 2018, in South Sudan where the introduction of mobile money in 2017 has enabled development organisations to distribute cash assistance securely, and Somalia which recently enabled digital payments to be made between the country’s banks, making payments easier.
And, in Ethiopia, non-banks were enabled to provide mobile money services in 2020 as mobile money services could lift 700 000 people out of poverty, add $5.3 billion to the country’s economy, increase tax revenue by $300 million, and essentially position the country to adapt to economic downturns according to the GSMA’s 2023 Mobile Money in Ethiopia report. Recognising this period as a key moment in the country’s transformation into a financially inclusive economic powerhouse, Onafriq has also strengthened its presence in Ethiopia through a number of partnerships with financial institutions, mobile network operators, and other key decision makers. This includes partnerships with Ethio telecom and M-PESA Safaricom to enhance and streamline remittance flows and address the shortage of forex while providing customers with much-needed funds.
It’s clear then that when all these elements work in harmony, they can break down barriers to financial access, enabling people and businesses to participate more fully in the economy, thus driving sustainable development and economic growth in these underserved regions. And, investing in these smaller, underserved markets – which represent a significant portion of the continent’s population – is simply integral to realising true financial inclusion across Africa.
When everyone is able to access financial services we can foster inclusive growth, stimulate local economies and open up access to new markets and opportunities, connecting the continent through sustainable economic development.
A Federal High Court in Abuja has dismissed a suit by Dr Bright Echefu, managing director/chief executive officer, Telcom Satellite Television Service (TSTV), with which he had sought to stop the Inspector General of Police (IGP) from investigating the allegation of N2 billion fraud against him.
Dr Bright Echefu, MD/CEO, TSTV
Kabiru Turaki (SAN), former minister of Special Duties, had, in a petition to the police, alleged among others , that his N2 billion investment in TSTV had been fraudulently diverted.
Upon being invited by the police for questioning, Echefu filed the suit marked: FHC/ABJ/CS/234/2024, praying that the IGP and his agents be restrained from conducting investigation into the case.
It was Echefu’s contention that the ex-Minister’s N2 billion investment was a civil transaction and the police have no power under any known laws to investigate such transactions.
He argued that the police cannot act as debt recovery agent for the normal complainant (Turaki).
In his judgment, Justice Inyang Ekwo held that the suit by Echefu was frivolous and lacking in merit.
Justice Ekwo held that it was wrong of the plaintiff to seek the court’s protection from being investigated over a petition against him on alleged stealing and misappropriation of N2bn investment in TSTV.
The judge was of the view that the allegations against Echefu related to stealing and misappropriating N2bn investment and not debt recovery drive as he erroneously claimed.
He held that the plaintiff failed to establish his claim that the N2b was in relation to civil transaction when the petition before the police alleged stealing and misappropriation of the fund invested in TSTV for its expansion.
Justice Ekwo faulted Echefu argument that the police have no power to investigate such petition against him.
He added that when a petition has the colour of stealing and misappropriating, the police are empowered under Section 4 of Police Act to inquire into such allegations.
The judge said: “The plaintiff (Echefu) has not denied being given the several sums of money by the 4th defendant (Kabiru Turaki) as investment in the companies mentioned in the averments in this case.
” The case made against the plaintiff (Echefu) is that of stealing and misappropriation. For the plaintiff to assert and actually sustain the assertion that this matter is contractual and that police cannot be involved, the onus is on the plaintiff to demonstrate with concrete evidence that there was no stealing and misappropriation.
“This is so because the mere claim that a relationship between the parties was and is contractual in nature is not a magic wand that will indiscriminately shield a person from being investigated on the allegations of criminal act arising from civil transaction”.
“To allow a plaintiff to coast home with the treasures of his loot on the grounds that such was contractual matter, will enhance a judicial victory for the undeserved.
“A citizen who is a victim of any act of crime, has right to make a report of same to the police and in the Nigerian system of administration of justice, when a crime is committed, it is the Nigerian police that moves in to investigate it.
“On the whole, the plaintiff has not given me any cogent ground to interfere in the exercise of the statutory power of the 1st and 2nd defendants (Police) on the petition by the 4th defendant (Turaki) that his investment has been stolen and misappropriated by the plaintiff.
“On this ground, I find that this action lacks merit and ought to be dismissed. I therefore make an order dismissing this case on those grounds,” he said.
Listed as defendants in the suit are the Nigeria Police Force, the IGP, the DIG Force Investigation Bureau, Turaki and the Attorney General of the Federation (AGF), who name the judge struck in the earlier part of the judgment as not being a necessary party.
MultiChoice and Canal+ have given details of the next steps in Canal’s mandatory takeover of the South African pay-TV company.
In a Combined Circular setting out the terms and conditions of the offer, it is confirmed Canal will acquire all the issued ordinary shares in MultiChoice it doesn’t already own, excluding treasury shares, from MultiChoice Shareholders for ZAR125.00 per share, payable in cash.
Canal+ and MultiChoice have now made a joint merger control filing to Competition Commission and are also engaging with the Independent Communications Authority of South Africa (ICASA) and other regulatory authorities.
Under the South Africa competition law, the transaction is classified as a ‘larger merger’, which requires approval by the Competition Tribunal.
MultiChoice officially accepted the offer from the Vivendi unit in June.
The combined company will have a presence in both the French and English-speaking markets. While Canal naturally has a hold over French-speaking African nations, MultiChoice has a stronger presence in English-speaking countries, including South Africa, Nigeria and Kenya.
National Broadcasting Commission (NBC), did not withdraw the license of EBS TV, Edo state’s broadcasting television, according to Crusoe Osagie, special adviser to governor Godwin Obaseki on Media Projects.
Godwin Obaseki
Osagie, in a statement urged the public to disregard the false claims describing it as the handiwork of mischief-makers
He explained that against claims that the license of EBS has been withdrawn over statutory failures, the Channel 55 under which the station operates on falls within the 700 megahertz band that is being repurposed by the federal government following an international treaty established by the International Telecommunications Union in 2015, of which Nigeria is signatory.
He disclosed that the NBC has, however, reassigned a new Channel 45 to Edo Broadcasting Service TV, while plans are in progress for the compensation for EBS by the NBC.
Osagie revealed that letters were written to the Broadcasting Stations within the band to inform them of the developments, notify them of new channels to relocate to, and provide their compensation needs for payment.
Affected Broadcasting stations were negotiated with beginning from around 2020 and 2021.
On the issue of licence fee, the Special Adviser said the Station was heavily indebted for over a decade, before Governor Obaseki came into office, adding that in June, 2022, the Governor approved and began to clear EBS indebtedness to the regulatory authorities.
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