Telecom
The Rise Fund to Invest $200m in Airtel Africa’s Mobile Money Business
Airtel Africa has announced the signing of an agreement under which The Rise Fund, the global impact investing platform of leading alternative investment firm TPG, will invest $200 million in Airtel Mobile Commerce BV, a wholly owned subsidiary of Airtel Africa plc.
AMC BV is currently the holding company for several of Airtel Africa’s mobile money operations; and is now intended to own and operate the mobile money businesses across all of Airtel Africa’s fourteen operating countries.
The Transaction according to a statement from Telecom giant, values Airtel Africa’s mobile money business at $2.65 billion on a cash and debt free basis.
The Rise Fund will hold a minority stake in AMC BV upon completion of the Transaction, with Airtel Africa continuing to hold the remaining majority stake.
The Transaction is subject to customary closing conditions including necessary regulatory filings and approvals, as necessary, and the inclusion of specified mobile money business assets and contracts into AMC BV.
The Transaction is the latest step in the Group’s pursuit of strategic asset monetization and investment opportunities, and it is the aim of Airtel Africa to explore the potential listing of the mobile money business within four years.
The Group is in discussions with other potential investors in relation to possible further minority investments into Airtel Money, up to a total of 25% of the issued share capital of AMC BV.
There can be no certainty that a transaction will be concluded or as to the final terms of any transactions.
The proceeds from the Transaction will be used to reduce Group debt and invest in network and sales infrastructure in the respective operating countries.
Airtel Africa mobile money services Operating under the Airtel Money brand, Airtel Africa’s mobile money services is a leading digital mobile financial services platform catering to a large addressable market in Africa (characterised by limited access to formal financial institutions with limited banking infrastructure) and includes mobile wallet deposit and withdrawals, merchant and commercial payments, benefits transfers, loans and savings, virtual credit card and international money transfers.
Mobile money services, the statement said, “are available across the Group’s 14 countries of operation, however in Nigeria the Group offers Airtel Money services through a partnership with a local bank and has applied for its own mobile banking licence. It is the intention that all mobile money operations will be owned and operated by AMC BV.
“In our most recent reported results for Q3, the mobile money service segment (corresponding to all the businesses that are intended to be transferred to AMC BV) delivered a strong operational performance:
- Generated revenue of $110 million ($440 million annualised), and underlying EBITDA of $54 million ($216 million annualised) at a margin of 48.7%.
- Year on year revenue growth for the quarter was 41.1% in constant currency, largely driven by 29% growth in the customer base to 21.5 million, and 9.7% ARPU growth Growth in transaction value was 53.0% to $12.8 billion ($51 billion annualised).
“Our mobile money business benefits from strong network presence with our core telecom business through the extensive distribution platform of kiosks and mini shops as well as dedicated Airtel Money branches supplementing our extensive agent network, to facilitate customers’ assured wallet and cash.
“We have a clear strategy to continue to drive sustainable long-term growth in Airtel Money with a focus on assured float availability, distribution expansion and increased usage cases for our customers.
“In this year alone we have added partnerships with Mastercard, Samsung, Asante, Standard Chartered Bank, MoneyGram, Mukuru and WorldRemit to expand both the range and depth of the Airtel Money offerings and to further drive customer growth and penetration.
“The profits before tax in the full year ending 31 March 2020 and the value of gross assets as of that date, attributable to the mobile money businesses were $143.4 million and $463.2 million, respectively.”
Key elements of the Transaction include:
- Agreement values Airtel Africa’s mobile money business at $2.65 billion on a cash and debt free basis.
- AMC BV, a wholly owned subsidiary of Airtel Africa, is currently the holding company for several of Airtel Africa’s mobile money operations; and is now intended to own and operate the mobile money businesses across all of Airtel Africa’s fourteen operating countries once the inclusion of the remaining mobile money operations under AMC BV is completed.
- A newly incorporated investment vehicle of The Rise Fund will invest $200 million through a secondary purchase of shares in AMC BV from Airtel Africa. The transaction will close in two stages. $150 million will be invested at first close, once the transfer of sufficient mobile money operations and contracts into AMC BV has been completed, with $50 million to be invested at second close upon further transfers.
- Airtel Africa aims to explore the potential listing of the mobile money business within four years. Under the terms of the Transaction, and in very limited circumstances (in the event that there is no Initial Public Offering of shares in AMC BV within four years of first close, or in the event of changes of control without TPG’s prior approval), TPG would have the option, so as to provide liquidity to them, to sell its shares in AMC BV to Airtel Africa or its affiliates at fair market value (determined by a mutually agreed merchant bank using an agreed internationally accepted valuation methodology). The option is subject to a minimum price equal to the consideration paid by The Rise Fund for its investment (less the value of all distributions and any proceeds of sale of its shares, and with no time value of money or minimum return built in) and a maximum number of shares in AMC BV such that the consideration does not exceed $400 million.
The Transaction is expected to reach first close over the next three to four months.
The Rise Fund will be entitled to appoint a director to the board of AMC BV and to certain customary information and minority protection rights.
Raghunath Mandava, CEO of Airtel Africa, commented: “In line with our vision of enhancing financial inclusion, Airtel Africa offers a unique digital mobile financial services platform under the Airtel Money brand. In most of our markets there is limited access to traditional financial institutions, and little banking infrastructure, with less than half of the population having a bank account across sub-Saharan Africa. Our markets therefore afford substantial market potential for mobile money services to meet the needs of the tens of millions of customers in Africa who have little or no access to banking and financial services, and this demand is driving growth.
“With today’s announcement we are pleased to welcome The Rise Fund as an investor in our mobile money business and as a partner to help us realise the full potential from the substantial opportunity to bank the unbanked across Africa.”
Yemi Lalude, Partner at TPG who leads Africa investing for The Rise Fund, added: “Financial inclusion is a global issue that is most acute in Africa. Through Airtel Money, Airtel Africa has built a unique platform that is closing the gap between traditional financial institutions and the millions of unbanked Africans across the 14 countries where Airtel Africa operates. We look forward to working with Airtel Africa to enhance their mobile money services, broaden its use cases, and grow into new markets. With this investment in Airtel Africa’s mobile money operations, we are excited to expand The Rise Fund’s global fintech portfolio and continue to deepen our focus on improving financial inclusion in Africa and around the world.”
MTN South Africa, in partnership with Lynk Global, has successfully conducted Africa’s first satellite-to-mobile phone call touted as a groundbreaking development.
This historic trial, conducted in Vryburg, North West province, marks a major step toward bridging connectivity gaps in underserved and rural regions across the continent.
The test involved making a voice call using a standard smartphone connected via a low-Earth orbit (LEO) satellite.
This innovative approach eliminates the need for traditional network infrastructure, providing a viable solution for remote areas with limited or no mobile coverage.
According to Charles Molapisi, CEO of MTN South Africa, this initiative aligns with the company’s broader strategy to extend network coverage to hard-to-reach areas.
“This achievement demonstrates our commitment to leveraging cutting-edge technology to ensure connectivity for all, regardless of location,” Molapisi stated.
The trial also assessed SMS capabilities over the LEO satellite connection, proving the technology’s potential for widespread application.
With successful implementation, satellite-to-mobile communication could revolutionise telecommunications in Africa, enabling digital inclusion and economic opportunities in regions previously disconnected from mainstream networks.
This milestone underscores the growing role of satellite technology in Africa’s telecommunications landscape.
By integrating satellite solutions with existing mobile networks, MTN and Lynk Global aim to provide seamless connectivity that overcomes traditional infrastructure challenges.
Samson Aminu, also known as Smile, has described the Smart Treasure Investment Team (ST Team) as a transformative force that has empowered its members and significantly contributed to poverty eradication.
Samson Aminu
Aminu, a VIP 9 member of the team, shared his experiences on Friday during the official car presentation ceremony held at the regional office in Lagos. Having recently received a Lexus RX350 and an international vacation from the team, Aminu recounted how the organization has positively changed his life.
“The Smart Treasure Investment Team has really imparted my life positively and changed my status from zero to hero,” he said.
He revealed that his first earnings through the team allowed him to relocate to a new apartment and acquire gadgets. “I’ve purchased various items for myself and my family, and established an operational center in Ilorin,” he added.
The ST Team, according to Aminu, aligns its activities with the United Nations’ 16 Sustainable Development Goals (SDGs), which include youth empowerment, poverty eradication, support for education in rural areas, and community service.
“The ST Team has come to eradicate poverty in Africa and across the globe. We are teaching people how to catch fish by themselves and making them financially stable,” Aminu explained.
He highlighted the organization’s initiatives such as providing allowances to civil servants, feeding the elderly, orphans, and widows, and investing in agriculture to sustain local communities.
“If the ST Team lasts long for another three years, the government would be grateful to this project as it would bring peace and comfort to the society,” Aminu said.
He applauded the leaders of the organization, Dr. Harold and Mentor Tina, for their sincerity, honesty, and dedication to humanity. “I urge the government to support this project, which has brought significant change to Nigeria in just two years,” he said.
Aminu, who has over 15 years of experience in multilevel marketing, commended the team for its exceptional standards and sustainability.
Telecom
15-Year-Old Autistic Artist, Kanye, to Unveil World’s Largest Art Canvas on Autism Awareness Day
Kanyeyachukwu Tagbo-Okeke, affectionately known as Kanye, has become a beacon of inspiration for Nigeria’s youth. The 15-year-old autistic artist is set to unveil what is expected to be the world’s largest art canvas by an individual on April 2, 2025, World Autism Awareness Day, at Eagles Square in Abuja.
Kanye’s journey began at the tender age of two when he first showed a proclivity towards art. Despite facing challenges associated with autism, Kanye has flourished as an artist, earning accolades and the nickname “Young Picasso” for his exceptional abstract paintings.
The young prodigy’s attempt at breaking the Guinness World Record started in November. 2024, as part of the Zeebah Foundation’s ‘Impossibility Is A Myth’ project. This initiative not only showcases Kanye’s extraordinary talent but also aims to raise funds for a state-of-the-art autism resource center in Abuja, highlighting the need for greater support and inclusion for individuals with autism.
Kanye’s story aligns with MTN Nigeria’s recent “Go Make A Difference” (Go M.A.D) campaign, which encourages Nigerians to take bold steps and create positive impacts in their communities. Onyinye Ikenna-Emeka, MTN’s Chief Marketing Officer, emphasised how Kanye embodies the Go M.A.D philosophy: “MTN’s mission is to connect people all over the world. Kanye is connecting art lovers, and people all over the world as well. He is a true icon, breaking barriers and proving that nothing is impossible”.
The unveiling event will be attended by key dignitaries, including FCT Minister Nyesom Wike, and Minister of Arts, Culture, Tourism and the Creative Economy, Hannatu Musawa. This high-profile support underscores the significance of Kanye’s achievement and its potential to inspire change.
Kanye’s father, Tagbo Okeke, stressed that this record attempt goes beyond personal achievement. “We started this awareness campaign to tell parents that no child should be left behind, that they are Fabulous, Autistic and Talented,” he said. The family’s efforts, including opening a gallery in Abuja where art therapy workshops are conducted, demonstrate their commitment to supporting others on the autism spectrum.
As Nigeria’s youth witness Kanye’s remarkable journey, many are inspired to make their own difference, regardless of the challenges they face. Kanye’s story proves that with determination, support, and the right tools – such as those provided by initiatives like MTN’s Go M.A.D campaign – young Nigerians can achieve extraordinary feats and create meaningful change in their communities.
Kanye’s upcoming unveiling of his monumental artwork is not just a personal triumph; it’s a powerful statement about inclusion, perseverance, and the limitless potential of Nigeria’s youth to make a difference.
SERAP Asks National Assembly to Drop Bill to Jail Nigerians who Fail to Vote
Nigeria Gets Fresh $500m World Bank Loan for Economic Stimulus Programme
Uninsured Depositors of Heritage Bank to Receive Liquidation Dividends In April – NDIC
SystemSpecs’s Subsidiary Deelaa Becomes Whatadeal
MTN, Lynk Global Make Africa’s First Satellite-to-Mobile Call
Telecom2 days agoIHS Nigeria Hosts Telecom Industry Stakeholders to Discuss Protection of Critical National Infrastructure in Lagos State
E-Financial2 days agoTitan Trust Bank Selects Oracle FSS for Core and Digital Banking Technology
General News2 days agoNCS to Launch Electronic System for Cash Declarations at Airports
News2 days agoSanwo-Olu Hails Jumia for Giant Strides in Growing Nigeria’s E-Commerce Sector
Telecom2 days agoMTN Champs Continental Relays: Over 1,000 Athletes Gear Up for Lagos Showcase
E-Financial2 days agoIMF Appoints Elumelu, Nigerian Businessman to Advisory Council
General News2 days agoAquaterra Energy Secures Multi-million-dollar well Intervention Contract with Intrepid Energy in Nigeria
Telecom9 hours agoSmart Treasure Investment Team’s Initiatives Eradicate Poverty, Says Aminu