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Ghana Connects to Nigeria’s Internet Exchange Point

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  • Ghana Connects to Nigeria’s Internet Exchange Point

Ghana Internet Exchange Point has connected to Nigerian’s Internet Exchange Point (IXPN) to route traffic locally within the region. While this process is on a vice-versa and partnership basis, checks revealed that the move is expected to enhance the chances of Nigeria becoming the regional hub for Internet content in the region and the continent; it will also serve as an opportunity for both countries to reduce cost and improve latency on the route.

Further analysis showed that the Internet traffic destined for the two countries will now remain local, meaning that instead of the traffic coming from Ghana to Nigeria, which first goes to Europe or the Americas before returning to Africa, will come straight to the region.This way, there will be some cost saving, improvement service delivery, and making services safer.

Besides, should Nigeria become the Internet hub for Africa, it will help the country to create contents, especially local that can serve the international market, and enable it attract foreign investors. The Guardian gathered at the weekend that the IXPN is now the second largest in Africa, and the regional IXP for the West African region, a status allocated to it by the African Union.

An IXP is a physical infrastructure through, which Internet Service Providers (ISPs), Content Delivery Networks (CDNs), and other IP centric organisations exchange Internet traffic between their networks.The primary purpose of an IXP is to allow networks to interconnect with one another directly via the exchange rather than through one or more third-party networks.

The advantages of the direct interconnection are numerous, but the primary reasons are cost savings, reduce foreign exchange transaction, reduced latency, high bandwidth availability, security, improving routing efficiency and providing fault tolerance.

Already, it has been revealed that a leading service provider in Nigeria now saves over N20million by localising its traffic using the exchange point. These cost savings for the service providers will eventually translate to reduction cost of Internet access to Internet subscribers in the country.The Ghana-Nigeria deal is already confirmed in document presented by a former Director-General, National Information Technology Development Agency (NITDA), Prof. Cleopas Angaye, at an interaction programme on, “Improving Socioeconomic Development of a Nation Through Qualitative Telecommunications Services,” organised by the Senate Committee on Communications.

In the document, which was obtained by The Guardian, Angaye said the coming together of these two countries will attract other countries, which would enhance the chances of Nigeria being the regional HUB for Internet content in the region and the continent.

Angaye said during his tenure at NITDA, the agency supported the implementation of various IXPs in Nigeria, specifically in Abuja, Port Harcourt, Enugu, and Kano, to ensure even growth of Internet access across the country.“We need to do more to assist the IXPN especially in other regions of Nigeria so that all the benefits being enjoyed by service providers in Lagos can be extended to them,” he stated.

The Managing Director and Chief Executive Officer, IXPN, Muhammed Rudman, who confirmed the connection with Ghana, told The Guardian that the exchange has connected about 45 top organizations in the country.

He said Ghana and Nigeria are working on collaborative efforts to exchange Internet traffic, saying it will give organisations in both countries easy access to each other’s content, while serving as a link to other parts of the world.Rudman said the move will attract foreign investors and content providers, saying that a major content provider would be coming to leverage the IXPN to expand its reach.

According to him, with traffic becoming local, there would be no need going to Europe first, before coming back to Nigeria, “such a move will help our data centres, business developers, content creators. This will ensure skills development, creation of more jobs, among others. Instead of first going to Google America to access traffic, it can now be done locally.”

He revealed that Nigeria being the largest country in Africa, has become a net importer of Internet content, “because there is more downloads than uploads, but with more exchange points and the country becoming a hub, there will be more uploads. So, other African countries can leverage the platform to expand.”

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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EU Raises Tariff on Chinese Electric Vehicles by 35%

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In an effort to slow down Chinese infiltration of the European market with more affordable options, the European Union has hiked tariffs on electric vehicles from China by 35% to 45% from the usual 10%.

According to people familiar with the situation, ten member states voted in support of the new tariff while Germany and four others voted against it. The remaining 12 states reportedly abstained.

Last month, the former European Central Bank President Mario Draghi warned that Chinese state-sponsored competition was a threat to the European Union and could leave the region vulnerable to coercion.

The bloc had claimed that China unfairly subsidized its industry to have an edge over EU businesses, a claim Beijing denies and has threatened retaliatory action on European dairy, brandy, pork and automobile sectors.

However, given the size of trade between the bloc and China, €739 billion or $815 billion in last year, it’s believed the two parties will continue negotiations to find an alternative to the tariffs.

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OpenAI’s Valuation Soars to $157 Billion After $6.6 Billion Funding Round

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OpenAI, the company that owns Chatgpt, has raised $6.6 billion in a new funding round to boost the company’s valuation to $157 billion as it looks to strengthen its lead in generative AI technology.

Thrive Capital led the funding round with $1.3 billion, while Microsoft invested an additional $750 million, bringing its total investment in OpenAI to $13.75 billion.

According to a source familiar with the matter, Khosla Ventures, Fidelity Management & Research Co., and Nvidia Corp., the chipmaker whose powerful processors are driving the AI boom—were also among the investors.

Apart from Elon Musk’s SpaceX and TikTok owner ByteDance Ltd, this deal ranks as one of the largest-ever private investments.

The ability of OpenAI to raise such a substantial amount despite heightened global risks demonstrates the industry’s confidence in the power of AI.

Other investors included Tiger Global Management, which contributed $350 million, and Altimeter Capital, which invested at least $250 million.

SoftBank Group Corp. and the new Abu Dhabi-based tech investment firm MGX also participated, with SoftBank’s investment totaling $500 million, according to one source who requested anonymity. Venture firm Coatue was another participant.

In a statement, the company said it plans to use the funds to advance AI research and expand its computing capacity. “AI is already personalizing learning, accelerating healthcare breakthroughs, and driving productivity,” said OpenAI Chief Financial Officer Sarah Friar. “And this is just the start.”

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Kazang Pay Launches Card Acquiring Service in Zambia

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Kazang, the prepaid value-added services (VAS) and card acquiring business within JSE-listed fintech Lesaka Technologies, has launched its Kazang Pay card acceptance solution for merchants in Zambia. Kazang Pay makes it affordable for merchants to accept card payments on the same Kazang terminal they use to sell prepaid products and services.

The Kazang Pay enabled terminal in Zambia accepts VISA debit and credit cards as well as mobile wallet payments. Payments are settled to the merchant’s Kazang wallet on the same day. It’s as easy as letting the customer tap or insert their bank card and enter their PIN on the secure scramble PIN pad.

Kazang operates around 12,000 VAS terminals in Zambia. The goal is to enable the majority to accept card payments over the next six months. Benefits to merchants include low transaction fees and no monthly terminal rental fee for those that meet a modest monthly transaction threshold as well as the opportunity to grow their business through card acceptance.

Kazang is Zambia’s largest VAS point-of-sale terminal provider, enabling mobile money payments, bank and mobile money cash in and out, bill payments, airtime, Zesco, and many other prepaid services on one platform. The addition of card acceptance makes the platform even more comprehensive for merchants and consumers alike.

The launch of Kazang Pay in Zambia follows the introduction of the solution in South Africa, where around 60,000 small and micro merchants use Kazang Pay to accept card payments.  In Zambia, there are around 3.8 million debit, credit and ATM cards in issue and 41,000 point of sale (POS) terminals in place. The value of POS transactions has grown to K 111.4 billion by 2022 from less than K 20 billion in 2018, according to the Bank of Zambia.

Says Leon de Wit, managing director at Kazang Zambia: “Zambia has made enormous strides in terms of financial inclusion, with card usage and penetration growing at a rapid pace. With Kazang Pay, merchants can now easily accept card payments on the same all-in-one terminal they already use for vending of VAS products.

“Card transactions help merchants to grow basket sizes and potentially attract more customers, and at the same time, reduce the risks and costs of handling cash. Moving towards digitalised payments will also enable merchants to track sales, manage cash flow,  and create a footprint that could make it easier for them to access loans.”

Ashley Naidoo, director of Kazang Pay in South Africa says: “Our Zambian merchants have eagerly embraced our card acquiring service as a valuable part of our one-stop solution. Following the launch of Kazang Pay in Zambia, we have seen higher VAS sales across our merchant base and much-improved merchant retention and with our card acquiring solution we now appeal to a broader merchant base.”

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