Telecom
Zeepay Raises Equity from Leading Institutions to Support its ongoing Expansion
Africa50 and Oikocredit lead equity investment in Ghanaian fintech Zeepay to support Africa expansion; The investment will support the expansion of Zeepay’s cross-border remittances and mobile financial services business across Africa and the Caribbean; The investment was made by Africa50, Oikocredit, Injaro Ghana Venture Capital Fund (IGVCF) and Verdant Capital Hybrid Fund, with a follow-on investment from Investisseurs & Partenaires (I&P).
Ghanaian fintech company Zeepay Ghana Ltd announced the completion of an equity investment by pan-African investment firms Africa50, Oikocredit, Injaro, Verdant Capital Hybrid Fund, and I&P. The funds will go towards expanding Zeepay’s operations in Africa and the Caribbean.
Zeepay is a fast-growing payment infrastructure company with a footprint in more than 20 countries globally. Since its inception in 2014, Zeepay has specialised in facilitating the instant settlement of remittances into mobile money wallets in Africa and the Caribbean on behalf of leading international money transfer organizations (IMTOs). Last year, the Company settled over 10 million remittance transactions worth over $ 3 billion in value.
The company’s vision is to promote financial inclusion and transform cross-border payments, particularly in low-income countries. This equity investment will support Zeepay in expanding its geographical footprint and in deepening its offering to IMTOs as well as senders and recipients of remittances.
Andrew Takyi-Appiah, the Founder & CEO of Zeepay Ghana Ltd, commented: “We would like to thank all our stakeholders, including our customers, shareholders, and staff, for all the support in bringing this round to a close. The raise will greatly assist us in completing our ongoing expansion drive into the rest of Africa.
“Our short to medium plan is to expand our mobile money reach into a minimum of 10 countries within the next two years, leveraging remittances in partnership with MoneyGram, and we are delighted to see this vision come through.”
“Africa50 is delighted to be partnering with Zeepay to support its leading role in the digital payments infrastructure space on the African continent and beyond. Foreign currency inflows from remittances are the lifeline for many African economies with sizable diaspora populations, especially in the current economic environment.
“Zeepay provides a local, affordable, secure, and convenient money transfer solution for the industrious African diaspora to support their loved ones,” said Raza Hasnani, Managing Director and Head of Infrastructure Investments at Africa50.
Oikocredit is delighted to partner with Zeepay as we grow our global portfolio of impactful fintechs. Remittances are essential to financial inclusion for many households in Zeepay’s countries of operation, and its digital wallets help overcome challenges around transparency, cost, convenience, speed and safety for both senders and receivers of funds.
We are pleased to partner with a fast-growing African business led by a capable team and look forward to supporting its growth,” said Samuel Kibiri, Equity Officer for Africa at Oikocredit.
”I&P’s follow-on investment in Zeepay demonstrates our conviction in the success and prospects of the business. We are proud to have partnered with a highly capable promoter and management team in delivering impressive financial and social returns over the past two years with our initial investment.
“We are excited to be joined by new like-minded investors and remain fully committed to supporting Zeepay to attain its goal of becoming a leading pan-African mobile financial services business impacting the lives of millions of underserved users across Africa and the Caribbean,” said Sebastien Boyé, Co-CEO of I&P.
“The Injaro team is honoured to partner with the Zeepay team, which Andrew Takyi-Appiah, a dynamic and visionary young Ghanaian entrepreneur, leads. We look forward to working together to achieve the ambitious goal of creating a successful Ghanaian multinational and a market leader in the fintech space.
“It is especially gratifying to finance Zeepay with Ghanaian capital as this ensures that profits from this investment flow back into the local economy to trigger a virtuous cycle of economic development.
“We believe that this investment represents an important first step in building linkages between Ghana’s pension funds and exceptional local businesses, which are important drivers of Ghana’s economic growth”, remarked Jerry Parkes, Managing Director of Injaro Investment Advisors Limited.
Kwabena Appenteng, Director at Verdant Capital, said, “Zeepay offers investors like Verdant an attractive combination of hard currency earnings through its remittance-to-the-wallet business and growth opportunities across the continent. Testament to the strength of the management team at Zeepay: the business reached profitability earlier in its lifecycle than other fintechs and has maintained strong profitability while growing and diversifying its footprint and revenue base.
Telecom
Suspected Lakurawa Terrorists Kill 3 Telcoms Workers in Kebbi
Terrorists belonging to Lakurawa group have reportedly killed three staff of a leading telecommunication firm.
The insurgents were said to have invaded a construction site at Gumki village in Arewa Local Government Area of Kebbi State.
The bandits reportedly attacked a construction site at Gumki village in Arewa Local Government Area of Kebbi State when their victims were installing a surveillance mast for the Nigeria Immigration Service and killed them and one other person who is yet to be identified.
There was a conflicting report of which organization the victims belonged as the police said three of the deceased were Airtel staff and the residents identified them to be Immigration staff.
A staff of Sir Yahaya Specialist Hospital however corroborated the villagers, saying the three victims brought to the hospital were Immigration staff.
But SP Nafiu Abubakar, police spokesperson, said four persons lost their lives, one indigene and three staff of Airtel.
He said from the report the police got, Bello M Sani, state Commissioner of Police, alongside with CIS Muhammad Bashir, Comptroller, Nigeria Immigration Service, Kebbi State Command, Lawali mobilized their men to the scene to evacuate the corpses to Sir Yahaya Memorial Hospital in Birnin Kebbi.
He said his CP has deployed additional tactical teams to the area and charged them to decisively deal with the suspected bandits operating in the area.
He said the CP also had meeting with people in the area and appealed to them to always assist the police and other security agencies with relevant information for their prompt response.
Telecom
Nigeria Has World’s Most Affordable Data Costs – GSMA
Nigeria has an average data cost of $0.38 per gigabyte, making her the most affordable countries globally and one of the cheapest in Africa for mobile data services.
United States averages $6 per gigabyte and South Africa with $1.77 per gigabyte rank the highest globally and in Africa respectively.
According to the GSMA, Nigerian data costs, as a percentage of Gross National Income (GNI) per capita, are among the lowest across Africa.
The reports by the body lends weight to telecom operators advocacy for tariff adjustments to address economic pressures threatening the sector’s sustainability.
The GSMA report, titled “The Role of Mobile Technology in Driving the Digital Economy in Nigeria,” highlighted Nigeria’s competitive data pricing, which is significantly lower than other African nations, such as Kenya ($0.59 per gigabyte), Ethiopia ($0.68 per gigabyte), and South Africa ($1.77 per gigabyte).
By contrast, the United States averages $6 per gigabyte, underscoring Nigeria’s advantage in offering cost-effective connectivity.
The cost of mobile data in Africa varies greatly by country and region.
Data costs can refer to the cost of mobile data or the cost of acquiring, maintaining, and using business data.
In 2023, the average cost of 1 GB of mobile data in Sub-Saharan Africa was $3.31, while in Northern Africa it was $0.86.
Telecommunications operators in Nigeria have been requesting some policy changes as well as tariff rebalancing to enable them deliver support to the Government’s digital economy objectives.
They have called for the simplification and improvement of the Right of Way (RoW) charging and administration process, harmonised across the country
According to them, all government authorities (at national and sub-national levels) should apply the national maximum RoW fee of N145 per/LSQM adopted by the National Economic Council (NEC) for the deployment of fibre across all states in Nigeria.
There should be a single point of contact in each state for the RoW application process while the duration for the approval process should be digitalised and limited to a maximum of one month.
Simplification and reduction of the tax burden on the mobile sector
On tariff, recall that the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) had urged the Nigerian Communications Commission (NCC) to consider reviewing tariffs upward to address rising operational costs.
Nodding in agreement, Bismarck Rewane, chief executive officer, Financial Derivatives, said the proposed tariff hike by telecommunications will help reduce inflation in the country.
He said it would help to reduce inflation because it increases productivity, stressing that the price of MTN shares went up by 10% to 220.
Rewane reiterated that investors had already factored that in, adding that they are expecting a lot of good goodies.
“But more important to think about is the fact that because of an increase in tariff and an increase in investment to make the industry sustainable, they’re going to see an increase in productivity, not directly but indirectly.
“Any increase in productivity and output is likely to allow inflation to moderate, which is the goal. So, we heard from the policymaker, Bosun Tijani, who was very clear that we want a sustainable sector. But we also heard from the regulator saying that we will hold these guys to quality of service.
“We also heard from the operators, MTN that they are all revving up. So in all, there are economic benefits because of increased output and productivity. Two, policymakers are aligned because they want this to lead to a moderation in inflation,” he added.
He further said that it was not a bad deal and re-echoed the minister’s comment that the tariff hike will not be 100 per cent.
“Will they get 100%? No, they will definitely not. We suspect that we are going to likely see something between 40 and 50% which is fair after so many years of static changes,” Rewane added.
Telecom
Bismarck, Economist Claims Planned Tariff Hike by Telcos Will Reduce Inflation
Bismarck Rewane, chief executive officer, Financial Derivatives, has said the proposed tariff hike by telecommunications will help reduce inflation in the country.
Rewane made this statement on Channels Television’s Business Morning on Thursday.
Recall that Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) had urged the Nigerian Communications Commission (NCC) to consider reviewing tariffs upward to address rising operational costs.
On January 3, Karl Toriola, chief executive officer (CEO), MTN Nigeria, said telcos want a 100 percent tariff hike.
According to Rewane, who previously supported the plans for a tariff hike, the move will make the sector more sustainable.
He said it would help to reduce inflation because it increases productivity, stressing that the price of MTN shares went up by 10% to 220.
Rewane reiterated that investors had already factored that in, adding that they are expecting a lot of good goodies.
“But more important to think about is the fact that because of an increase in tariff and an increase in investment to make the industry sustainable, they’re going to see an increase in productivity, not directly but indirectly.
“Any increase in productivity and output is likely to allow inflation to moderate, which is the goal. So, we heard from the policymaker Bosun Tijani, who was very clear that we want a sustainable sector. But we also heard from the regulator saying that we will hold these guys to quality of service.
“We also heard from the operators, MTN that they are all revving up. So in all, there are economic benefits because of increased output and productivity. Two, policymakers are aligned because they want this to lead to a moderation in inflation,” he added.
He further said that it was not a bad deal and re-echoed the minister’s comment that the tariff hike will not be 100 per cent.
“Will they get 100%? No, they will definitely not. We suspect that we are going to likely see something between 40 and 50% which is fair after so many years of static changes,” Rewane added.
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