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Tizeti Launches NeXTGEN Connectivity Solutions to Address Post-Pandemic ‘New Normal’

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To enable more Africans to take advantage of digital offerings in a new world defined by the Covid-19 pandemic, West Africa’s pioneer solar-based internet and voice service provider, Tizeti, has launched new connectivity offerings.

The new products encompass the company’s commitment to widening the broadband envelope in Nigeria with more robust internet plans, expanding coverage, especially in Nigeria, Africa’s most populous country, and a focus on accelerating internet availability across the continent with a new venture fund. The products also reiterate the company’s focus on delivering a simpler and more convenient technology offering with a smart customer care operation and integrated Customer Relationship Management systems.

Speaking at the company’s annual conference, Tizeti NeXTGEN, the company’s Chief Executive Officer, Kendall Ananyi said the company reflected on digital interaction and transformation more seamless and intuitive for its stakeholders, especially during the wake of the disrupting global pandemic.

“The global pandemic expedited the need for technology to be more agile, faster, more intuitive, and easier to understand, irrespective of the peculiarities of its users. Many people were unable to quickly adapt to the new normal of working, connecting to family and colleagues remotely, and accessing various educational, occupational, entertainment, and other services virtually. Many firms took an unnecessarily long time to adjust to the constraints the pandemic brought, and this resulted in declined productivity, ineffective transformation, and lost revenue. Technology is only useful when it is creating solutions to problems and we believe that as a leader in the digital space in West Africa, we have a role to build the technology platforms that will allow our user base to be agile and relevant in the coming years. We saw the transition from physical everything to the work-from-home model overnight and knew that we had to help people and businesses change the way they work and play”.

Ananyi continued “This is why we have launched new voice and data service for residential, small, medium, and enterprise organizations within Nigeria. Our brand-new Turbo 100MBps Unlimited Internet Plans in Lagos will guarantee 100Mbps unlimited plans (which is 50 times faster than the existing plans in the market), with a free three months pilot to the first 100 signups in the Lekki area.”

Ananyi also talked up the company’s desire to empower more Nigerians, stimulate economic activities and provide unlimited access to affordable and reliable broadband services by widening the broadband envelope to 10 new cities in Nigeria. “We are expanding our unlimited internet plans, currently available in cities in Lagos, Ogun, Rivers and Edo States, to Abuja, Ibadan, Kaduna, Kano, Warri/Asaba, Eket/Uyo, Onitsha, Aba, Enugu, and Calabar. We are building brand-new, solar-powered, 4G-capable towers in these cities and leveraging expansive fiber-networks built by some of our partners, to enable us to roll out our low-cost broadband service, and bring millions of people online, who can now take advantage of the life-changing socio-economic opportunities that access to the Internet provides.”

The company announced it’s partnership with a $5m venture fund focused on startup ISPs that are expanding internet access across Africa. According to the company’s Chief Operating Officer, Ifeanyi Okonkwo, the company will leverage its proprietary OS technology, global partnerships with equipment vendors, submarine cable companies, payment providers, and Venture firms to provide the resources for these startup ISPs to accelerate the availability of unlimited internet across the continent. Successful startups will participate in a 3-months programme with at Tizeti’s location in Nigeria or Ghana where they are expected to gain the knowledge and expertise to rapidly launch affordable internet services in their respective countries.

Tizeti has also simplified its customer experience with a Smart Interactive Voice Response Service that extends its existing Wi-Fi Voice APIs and authenticates callers into their call centers using their phone numbers. This smart IVR reduces wait times and the need to talk to customer service agents by providing tailored information on account holders while on the phone call. The company also extended this innovation to its Integration to major Customer Relationship Management systems such as Freshdesk, Zoho, and Bitrix 24. This new feature allows businesses to make and receive calls directly from their CRM applications using Wificall.ng at local call rates.

“Tizeti was built to tackle poor internet connectivity not only in Nigeria but on the continent as a whole, by developing a cost-effective solution from inception to delivery, for reliable and uncapped internet access for potentially millions of Africans”, said Ananyi. “Over the past years, we have been able to roll out our superfast broadband services in Lagos, Ogun, Rivers, and Edo state to address the huge demand for reliable unlimited internet service. This move to expand rapidly to 10 other states builds on the successes and allows us to expand quickly to Tier 2 and Tier 3 locations outside the unlimited broadband internet envelope. We also have our eyes on accelerating our expansion in other West African countries, over the next few years”, he said.

Other speakers at Tizeti NeXTGEN include Yinka Adewale, co-founder/Chief Executive Officer, Kudi; Akin Jones, co-founder/Chief Executive Officer, Aella App; Dr. Femi Kuti, Chief Executive Officer, Reliance Health, Eniola Campbell, Country Managing Director, Nokia Nigeria, and Olubunmi Ogun, Deputy General Manager, Nigeria Sales, MainOne.

For many countries in Africa, there is still a huge digital divide. Tizeti is playing a significant role in addressing this digital infrastructure deficit in Africa with innovative technology and capabilities, to improve development outcomes for millions of people, with better outcomes for employment, education, family and social life, and access to information.

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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MTN Nigeria Revises IHS Lease Terms, Aims for N100 Billion Yearly Savings

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MTN Nigeria, one of the country’s leading telecommunications giants, has successfully renegotiated its tower lease agreements with IHS Towers, a strategic move expected to save the company approximately N100 billion annually.

This renegotiation is a significant step in MTN Nigeria’s ongoing efforts to improve its financial performance amid Nigeria’s challenging business environment.

The revised terms of the lease agreements introduce several critical changes aimed at reducing operational costs and mitigating the impact of Nigeria’s volatile currency fluctuations.

The new agreements reduce the US dollar-indexed component of the leases, which has now been linked to a discounted U.S. consumer price index (CPI).

This change is crucial in lowering MTN Nigeria’s exposure to the fluctuating naira, providing the company with a more predictable and stable cost structure.

Also, the renegotiation removes technology-based pricing, simplifying the company’s cost framework. Payments for tower upgrades will now be based on tower space and power consumption, rather than the technology deployed on the towers.

This shift is expected to bring more clarity and control over MTN Nigeria’s infrastructure expenditure.

Another key aspect of the renegotiation is the introduction of an energy cost component indexed to the cost of diesel power.

Given Nigeria’s unreliable power supply, telecom companies like MTN Nigeria rely heavily on diesel generators to power their infrastructure.

By linking energy costs to diesel prices, MTN Nigeria can better manage these expenses, which have historically been a significant burden on its operations.

The renegotiated terms also include provisions for discounts and incentives over the life of the contracts, further enhancing the financial benefits for MTN Nigeria.

These changes are expected to boost the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) margin, positioning it for stronger financial performance in the coming years.

MTN Nigeria’s strategic renegotiation comes at a time when the telecommunications industry is grappling with increasing operational costs and economic instability.

The savings generated from these new lease terms will not only improve the company’s bottom line but also allow it to reinvest in critical infrastructure and expand its services across the country.

As MTN Nigeria continues to navigate the complexities of the Nigerian market, the successful renegotiation of its tower lease agreements with IHS Towers underscores its commitment to maintaining financial stability and delivering value to its shareholders.

The telecom giant’s proactive approach to cost management and risk mitigation sets a positive precedent for other companies in the industry facing similar challenges.

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Airtel Africa Launches $50 Million Share Buy-Back Programme

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Airtel Africa, a major player in telecommunications and mobile money services across 14 African nations, has announced the initiation of the second tranche of its $100 million share buy-back programme.

This latest phase is a significant step following the completion of the programme’s first tranche earlier this year.

The buy-back programme, which commenced today, aims to enhance shareholder value by reducing the company’s capital through the repurchase and cancellation of its own shares.

The second tranche is expected to conclude by December 19, 2024. Airtel Africa has engaged Citigroup Global Markets Limited (Citi) to facilitate this phase of the buy-back.

Under this agreement, Citi will conduct on-market purchases of Airtel Africa’s ordinary shares, with the company subsequently acquiring these shares from Citi.

Citi will operate as a riskless principal and will make purchase decisions independently of Airtel Africa.

“The purpose of this buy-back programme is to reduce the capital base of the Company, thereby benefiting our shareholders through increased value per share,” stated a spokesperson from Airtel Africa. “All shares repurchased under this programme will be cancelled.”

The share buy-back transactions will be conducted within the framework of pre-set parameters outlined in the agreement between Airtel Africa and Citi.

These transactions will adhere to the guidelines established by the Company’s general authority to repurchase shares, as granted by its shareholders during the annual general meeting held on July 3, 2024.

At that meeting, shareholders approved the purchase of up to 374,141,187 ordinary shares.

In compliance with regulatory standards, the buy-back will be conducted according to Chapter 9.6 of the Financial Conduct Authority’s UK Listing Rules and the Market Abuse Regulation (EU) No 596/2014, as incorporated into UK domestic law.

Market Impact and Outlook

This strategic move comes as Airtel Africa seeks to optimize its capital structure and deliver value to its investors.

The share buy-back programme is anticipated to reduce the number of outstanding shares, potentially increasing the value of each remaining share and reflecting positively on the company’s stock performance.

The commencement of the second tranche follows the successful execution of the first tranche, demonstrating Airtel Africa’s commitment to shareholder returns and capital management.

The company’s decision to continue with the buy-back programme highlights its confidence in the long-term growth prospects and stability of its operations across the African continent.

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MTN Records First Loss in Seven Years Due to Naira Devaluation

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MTN Nigeria - Investors King

MTN Group Ltd., Africa’s largest wireless carrier by revenue, has reported its first loss in seven years due to the steep devaluation of the Nigerian naira.

The company announced a loss of 7.39 billion rand ($414.7 million) for the first half of 2024, a stark contrast to the 4.14 billion rand profit it recorded during the same period last year.

The loss marks MTN’s first since 2016, when the company was hit with a massive fine exceeding $1 billion by the Nigerian government.

This time, however, the company’s financial setback is largely attributed to the economic challenges in Nigeria, one of its most critical markets.

Since President Bola Tinubu took office in May 2023, the naira has depreciated by more than 70% against the U.S. dollar, severely impacting MTN’s revenue in the region.

Nigeria, Africa’s most populous nation, contributes nearly a third of MTN’s total earnings, making the devaluation a significant blow to the company’s overall financial health.

Currency devaluations in other African markets, such as South Sudan, have also compounded MTN’s financial difficulties.

Despite these challenges, the group managed to increase its total customer base by 0.8%, bringing its total number of subscribers to 288 million.

However, the ongoing conflict in Sudan and MTN’s recent exit from Afghanistan have led to a decline in users in those regions.

MTN’s Chief Executive Officer, Ralph Mupita, revealed that the company is considering further exits from specific markets as part of its strategy to stabilize operations.

The company is currently in discussions to divest from its Guinea Conakry unit and plans to reduce its stake in the Nigerian business to as low as 65% by selling shares to local investors. MTN currently holds a 73% stake in its Nigerian operations, according to data compiled by Bloomberg.

Despite the financial challenges, MTN remains committed to its long-term growth strategy in Africa. The group continues to focus on expanding its digital and fintech services, which are seen as key drivers of future revenue.

However, the current economic conditions in some of its major markets, particularly Nigeria, underscore the volatility and risks that come with operating in the region.

As MTN navigates these turbulent waters, the company’s ability to adapt to the rapidly changing economic landscape in Africa will be critical to its future success.

Investors and stakeholders alike will be closely watching how MTN manages its operations in Nigeria and other key markets in the coming months.

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