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‘Mobile Ecosystem in West Africa to Hit $50bn By 2022’

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  • ‘Mobile Ecosystem in West Africa to Hit $50bn By 2022’

Considering the strong growth in mobile subscription and mobile broadband across West African countries, Nigeria inclusive, a new GSMA study, which was released at the recently concluded Mobile 360 African Forum in Abidjan, Côte d’Ivoire, has predicted that the mobile industry in West Africa will contribute more than $50 billion annually to the region’s economy by 2022.

The new report, The Mobile Economy: West Africa 2018, calculates that the region’s mobile ecosystem contributed $37 billion in value last year, equivalent to 6.5 per cent of GDP, and will grow to $51 billion, which is about 7.7 per cent of GDP within five years. The economic contribution over this period will be spurred by strong subscriber growth and the move to mobile broadband networks and services.

Analysing the study, the Chief Regulatory Officer at the GSMA, John Giusti, said: “The report demonstrates the vital role West Africa’s mobile ecosystem is playing in driving economic growth and empowering citizens across the region, as well as in delivering against many of the targets of the UN’s Sustainable Development Goals. However, further work is required as more than half of West Africa’s citizens are not yet connected to a mobile service, excluding them from the socio-economic benefits that mobile delivers.”

At the end of 2017, there were 176 million unique mobile subscribers across the West Africa sub-region, which comprises the 15 members of the Economic Community of West African States (ECOWAS). This is equivalent to a penetration rate of 47 per cent of the region’s population, up from just 28 per cent at the start of the decade. Strong subscriber growth is forecast to continue over the coming years; 72 million additional mobile subscribers are expected to be added in West Africa by 2025, lifting subscriber penetration to 54 per cent, Giusti said.

According to him, much of this growth is attributable to the demographic situation across the region, as large youth populations are expected to take out mobile subscriptions as they reach adulthood. According to the report, more than 40 per cent of the population in many countries across sub-Saharan Africa are below the age of 16.

Meanwhile, the transition to mobile broadband in West Africa is being driven by the expansion of 3G and 4G networks, lower data tariffs and the increasing affordability of smartphones. 3G networks now cover two-thirds of the regional population and 4G adoption is also rising rapidly. As of March 2018, there were 29 live 4G LTE networks in nine countries across West Africa, six of which have launched in the last year. 3G and 4G together accounted for 36 per cent of West African mobile connections in 2017 and are forecast to rise to 94 per cent of the total by 2025. Local operators are expected to spend $8 billion on capital expenditure (CAPEX) over the next two years building out and upgrading their networks, the report further said.

The report said the expected increase in the mobile ecosystem’s contribution to the West Africa economy over the next five years would be due primarily to productivity gains. The greater availability of mobile broadband networks, for example, would enable improved access to information and services, which in turn drives efficiencies in business processes across many industries, including finance and health.

“Connecting a new generation of mobile subscribers across West Africa requires a new era of collaboration between industry and governments in order to implement policies that encourage network expansion, innovation and affordability,” Giusti added.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Meta Platforms Inc.’s Astonishing Rally Adds $1 Trillion in Value

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Meta Platforms Inc., formerly known as Facebook, has witnessed an extraordinary rally that has propelled its market value by $1 trillion.

The tech giant’s record-breaking surge, fueled by strategic investments in artificial intelligence (AI), underscores its resilience and adaptability in navigating the ever-evolving digital landscape.

Since its darkest days in 2022, Meta’s shares have undergone a remarkable transformation, soaring to new heights and shattering records along the way.

Despite its monumental growth, some perspectives suggest that Meta is still trading at a discount with its shares valued at 24 times estimated earnings early Wednesday, closely aligned with its 10-year average and just below the Nasdaq 100’s multiple of 25 times.

Among its peers in the Magnificent Seven group of big tech companies, only Alphabet Inc. boasts a lower multiple, standing at approximately 21 times.

AI emerges as the primary catalyst behind Meta’s astonishing rally, driving gains and serving as a harbinger of future growth prospects.

Meta’s substantial investments in AI have revolutionized ad targeting and content recommendation algorithms, enhancing user engagement and advertiser relevance.

The strategic bet on AI has paid off handsomely, with profits tripling in Meta’s most recent quarterly report, accompanied by a surge in revenue growth. Such robust earnings prompted Meta to announce a $50 billion buyback program and implement a dividend, further solidifying investor confidence in the company’s trajectory.

Conrad van Tienhoven, a portfolio manager at Riverpark Capital, lauds Meta’s strategic focus on AI, stating, “Outside of chip or hardware companies like Nvidia or Dell, no company has benefited more from AI than Meta, just in terms of the impact on growth.”

Meta’s unparalleled surge, exceeding 450% from its nadir almost 18 months ago, positions it as a standout performer among its peers. This year alone, Meta’s shares have surged by approximately 46%, trailing only chipmaker Nvidia Corp. within the Magnificent Seven cohort.

The recent selloff that preceded Meta’s current rebound underscored investor concerns over its spending on the metaverse initiative. However, Meta’s proactive measures, including a concerted focus on cost efficiency and innovation, have restored market confidence.

Rick Bensignor, chief executive officer of Bensignor Investment Strategies, affirms Meta’s trajectory, stating, “Meta has figured out how to get rid of unnecessary spending, which has been a real balance sheet plus, and it continues to innovate.”

As Meta prepares to unveil its first-quarter earnings results on April 24, investors eagerly anticipate updates on key metrics such as ad revenue growth and the efficacy of AI solutions.

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Nigeria Leads African Startup Funding with $160 Million in First Quarter

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Despite challenges in the global economy and a slowdown in funding across Africa, Nigerian startups have demonstrated resilience by securing $160 million in funding during the first quarter of this year.

This shows Nigeria’s position as a key player in the continent’s vibrant startup ecosystem and highlights the potential for continued growth and innovation in the Nigerian tech sector.

A new report by Africa: the Big Deal noted that Nigeria, alongside Kenya, South Africa, and Egypt, accounted for 87 percent of all startup investments in Africa during this period.

The breakdown of funding among these four countries showed Nigeria leading the pack with $160 million, followed by Kenya with $108 million, South Africa with $72 million, and Egypt with $53 million.

This data underscores Nigeria’s dominance in attracting investment within the African startup landscape, cementing its status as a hub for innovation and entrepreneurship on the continent.

According to the report, the majority of investments were channeled to startups headquartered in these four countries, with Nigeria and Kenya capturing the lion’s share of funding.

Only a handful of other African nations managed to secure more than $5 million in funding during the first quarter, highlighting the concentrated nature of startup investment activity in Africa.

Despite the challenges posed by the COVID-19 pandemic and economic uncertainties, African startups have continued to demonstrate resilience and adaptability. Many entrepreneurs have innovated and created new business models to navigate the evolving landscape, driving growth and attracting investor interest.

Prashant Matta, SP of Panache Venture, acknowledged the decline in funding as a global issue exacerbated by economic challenges. However, he expressed optimism about Nigerian startups, citing mega-deals such as the $100 million investment into Nigerian mobility fintech startup Moove. These mega-deals, fueled by investments from outside Africa, show the confidence of international investors in the Nigerian tech ecosystem.

The report highlighted that the logistics and transport sector emerged as the top recipient of funding in the first quarter, totaling $151 million from 14 deals. Nigerian startup Moove raised a significant $110 million during this period.

Following closely behind, fintech attracted the second-highest funding with $105 million, followed by agric and food with $50 million, energy with $49 million, and healthcare with $45 million. These sectors reflect the diverse range of opportunities and innovations driving growth in the Nigerian startup ecosystem.

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Social Media

Trump Media & Tech Group Plummets, Wiping Out $2.8 Billion in Value

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Trump Media & Technology Group Corp., the social media predominantly owned by former U.S. President Donald Trump, has lost $2.8 billion in market value in the last few days.

The tumultuous downturn comes as a wave of retail traders who once fervently boosted the stock have begun to offload their holdings.

The company, which encompasses the Truth Social platform, has seen its stock plummet by 36% since its closing high on March 26.

This nosedive not only erased the gains achieved in the aftermath of its merger with Digital World Acquisition Corp., but it also pushed the stock below its pre-merger trading levels.

Initially, Trump Media enjoyed a meteoric rise in its early days as a publicly traded entity following the merger with DWAC, the blank-check company facilitating the deal.

However, the allure of the stock among individual investors, who saw it as a means to express support for the former president’s potential 2024 reelection bid, has waned significantly.

As the stock continues its downward spiral, the once-projected paper windfall for Donald Trump himself has also dwindled.

Trump’s anticipated gains from the venture have plummeted by approximately $1.6 billion, leaving him with an estimated $2.9 billion in paper wealth.

However, realization of this wealth remains contingent upon a six-month lock-up agreement, delaying Trump’s ability to sell shares.

The timing of Trump Media’s downfall coincides with a flurry of legal troubles facing the former president. With just a week until the commencement of his first criminal trial in Manhattan, Trump faces charges related to falsifying business records in connection with hush money payments to a pornographic actress prior to the 2016 election.

Also, Trump is slated to undergo deposition in a civil lawsuit filed against him and Trump Media by two co-founders alleging share dilution prior to the merger.

Despite the substantial loss in value, Trump Media retains a market capitalization of approximately $5 billion, underscoring the paradoxical valuation dynamics in the current market environment.

The company’s meager revenue of $4.1 million in the preceding year contrasts sharply with its lofty market capitalization, raising concerns about the sustainability of its valuation.

The dramatic downturn of Trump Media & Technology Group mirrors the volatile trajectory of past meme stocks like GameStop Corp. and underscores the inherent risks associated with companies emerging from SPAC mergers.

As the company grapples with its dwindling valuation and mounting legal challenges, the future of Truth Social and its associated ventures remains uncertain in the ever-shifting landscape of the digital realm.

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