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Paga to Accelerate Growth With $10m Investment

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  • Paga to Accelerate Growth With $10m Investment

Paga, a mobile money company in Nigeria, has announced that it has closed a $10m growth financing led by the Global Innovation Fund.

Also participating in the round are existing investors, Goodwell (managed by Alitheia Capital), Adlevo Capital, Omidyar Network and Unreasonable Capital.

According to the company, this new financing brings the total that Paga has raised since inception in 2009 to $35m.

It commenced commercial operations in August 2012 and recently revealed that since then, it had served nine million customers and created over 10,000 jobs through its 17,000 agents who hire workers to run their stores.

The Chief Executive Officer, Global Innovation Fund, Alix Zwane, said, “The GIF is proud to lead Paga’s Series B2 round.

“Paga’s mission of helping people ‘make life possible’ aligns with our core mission of supporting entrepreneurs and innovators that seek to improve the lives of those living on less than $5 per day. I am pleased that the GIF will help to enable Paga’s next phase.”

Nigeria is one of the fastest growing emerging markets in the world and the biggest economy in Africa, with $405bn Gross Domestic Product. The country currently has a population of 186 million but is expected to become the third largest country in the world (behind India and China) by 2050 with 411 million people.

Financial inclusion experts say that in Nigeria today, over 100 million adults find it difficult to transfer or leverage money for basic human needs. According to them, this problem is one that exists even for those that are banked, and is something Paga’s team is passionate about solving.

The Managing Partner, Alitheia Capital, Tokunboh Ishmael, said, “The growth financing announced today will enable Paga to further scale its business in Nigeria to drive the growth of Paga’s mobile wallet and agent network, and explore expansion opportunities in other markets where similar problems exist.

“Our belief in Paga as an effective platform to drive financial inclusion is unwavering. Paga has shown solid progress, and alongside other investments in our portfolio, has played a huge role in our ability to demonstrate that enabling access to essential services for the broad population has both significant financial and developmental impact.”

According to Chief Executive Officer, Paga, Tayo Oviosu, the company’s transformative purpose is to make it simple for one billion people to access and use money.

Oviosu stated, “With a nationwide network of 17,000 agents and more than nine million users accessing funds in Nigeria, Paga is making strides by enabling efficient digital payments and building successful societies. This has translated to over 57 million transactions processed worth approximately $3.6m, a business that is profitable and growing at 110 per cent compounded annual growth rate (2016-2018).

“At Paga, we are building an ecosystem that enables people to digitally send and receive money, and creating simple financial access for everyone.”

He added, “We do not seek to be a bank, but rather to partner the banks and financial institutions in the markets we operate. We are proud to welcome the Global Innovation Fund as a partner on our journey.

“We were attracted to them because of their global focus, network to help us achieve our ambition and a clear alignment of values. It is also fantastic that our existing investors remain committed to our strategy and are demonstrating that by their additional investments.”

Oviosu had earlier said that the firm’s mission was strengthened by the recent release of its new money transfer app that would drive the use of the Paga wallet for person-to-person transfers and in-store payments.

“In a country where digital financial services still leave much to be desired, Paga is staking a claim at being the Venmo of Nigeria. With cash still being king in emerging markets and the general unreliability of Point of Sale services, coupled with the sparsely located banks and Automated Teller Machines, the company has created a viable solution for ease of payments: a simple app that allows you to send money to or request money from anyone only using their phone number or email address, and a digital wallet to which you can link any debit card or bank account,” he noted.

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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Starlink Pulls Plug on Ghana, South Africa, and Others

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Starlink, the satellite internet service operated by SpaceX, has announced the cessation of services in countries including Ghana and South Africa.

This decision comes as a significant blow to users who have come to rely on Starlink for their internet connectivity needs.

The decision, set to take effect by the end of April 2024, will disconnect all individuals and businesses in unauthorized locations across Africa, including Ghana, South Africa, Botswana, and Zimbabwe.

While subscribers in authorized countries such as Nigeria, Mozambique, Mauritius, and others can continue to use their kits without interruption, those in affected regions face imminent loss of access.

One of the reasons cited by Starlink for the discontinuation is the violation of its terms and conditions.

The company explained that its regional and global roaming plans were intended for temporary use by travelers and those in transit, not for permanent use in unauthorized areas. Users found in breach of these conditions face the termination of their service.

Furthermore, Starlink’s recent email to subscribers outlined stringent measures to enforce compliance.

Subscribers who use the roaming plan for more than two months outside authorized locations must either return home or update their account country to the current one. Failure to do so will result in limited service access.

The decision to discontinue services in certain countries raises questions about the future of internet connectivity in these regions.

Also, concerns have been raised about Starlink’s ability to enforce the new rules effectively. Reports indicate that the company has previously failed to enforce similar conditions for over a year, raising doubts about the efficacy of the current measures.

Starlink’s decision to pull the plug on Ghana, South Africa, and other nations underscores the complexities of providing satellite internet services in diverse regulatory environments.

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Nigeria’s Broadband Penetration Stalls at 42.53% Amid Connectivity Challenges

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Nigeria’s broadband penetration has stalled at 42.53% as of January, according to the latest report.

Subscriptions currently stand at 92.19 million, indicating a significant gap in connectivity, particularly in rural areas.

The Nigerian National Broadband Plan 2020-2025 aims to increase broadband penetration to 70% by 2025, with the ultimate goal of achieving 96% mobile broadband coverage by 2030.

However, this ambitious target requires substantial investment—approximately $461 million, according to a recent report by the Global System for Mobile Communications Association (GSMA).

While the country’s major telecommunications companies, such as MTN Nigeria and Airtel Africa, have invested heavily in expanding their network infrastructure, much of this development has been concentrated in urban areas. Rural and underserved regions face a significant coverage gap, exacerbating the digital divide.

Despite these challenges, Nigeria has made progress in improving its broadband infrastructure. Since 2012, the mobile broadband coverage gap across Africa has decreased from 56% to 13% in 2022, due to significant investments in network capacity and new technologies.

Nonetheless, millions of Nigerians, particularly those in rural regions, remain without access to essential telecom services.

To address this issue, Nigeria’s government established the Universal Service Provision Fund (USPF) in 2006, aimed at bridging the connectivity gap and expanding broadband access to unserved and underserved areas.

The fund provides resources for deploying telecommunications infrastructure in economically unviable regions.

The success of these initiatives, along with increased investments in broadband infrastructure and policies to incentivize internet expansion in remote areas, will be crucial in closing the connectivity gap and improving digital access for all Nigerians.

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iPhone Shipments Drop Amid Resurgence of Android Rivals

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Apple Inc. reported a significant drop in iPhone shipments during the March quarter, reflecting a downturn in sales across China amid the resurgence of competition from Android-powered rivals.

According to market tracker IDC, the tech giant shipped 50.1 million iPhones in the first three months of the year, a 9.6% year-on-year decline that fell short of the average analyst estimate of 51.7 million.

The steep decrease in iPhone sales marks Apple’s most significant quarterly dip since 2022, when Covid-19 lockdowns disrupted supply chains.

This time, the Cupertino-based company faces challenges from resurgent competitors such as Huawei Technologies Co. and Xiaomi Corp.

These firms have rebounded strongly in recent quarters, and their innovative product lines have begun to reclaim market share from Apple in China.

Samsung Electronics Co. regained its position as the top smartphone supplier globally, while Apple ranked second. Xiaomi closed the gap on Apple, shipping 40.8 million units, an impressive 33.8% increase year-on-year.

Transsion Holdings, another key player in the budget smartphone segment, nearly doubled its shipments, showcasing the competitive environment Apple faces.

Nabila Popal, research director at IDC, highlighted the broader shift in the smartphone market, which has recovered from the supply chain disruptions and challenges of recent years.

“While Apple has demonstrated resilience and growth in recent years, maintaining its pace and share in the market may prove challenging as Android manufacturers make strides,” Popal commented.

Apple has a strong brand and loyal customer base, yet its market position may be tested further by the aggressive pricing and innovative products offered by Chinese rivals.

The company’s efforts to sustain its premium pricing strategy may also be challenged as more customers consider switching to Android alternatives.

As the tech industry looks ahead to the rest of the year, Apple’s upcoming earnings report and strategic moves to address this competitive pressure will be closely watched by investors and industry observers alike.

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