Telecommunications

Econet Group Announces Launch of Cassava Technologies

Published

3 years ago

November 10, 2021

Privately held African telecommunications group, Econet, today announced the launch of Cassava Technologies, which brings together Econet’s digital services and digital infrastructure product segments, encompassing fiber broadband networks, data centers, and renewable energy; as well as cloud & cybersecurity, fintech, and digital platforms.

Cassava Technologies, headquartered in London, is Africa’s first integrated tech player of continental scale at the forefront of technology innovation, with operations and activities in most African countries. Its product segments provide digital solutions to over 1 million enterprises and enable access to the internet for over 500 million people. Its Sasai Super App is projected to provide access to fintech services for over 75 million customers across Africa by 2025.

Cassava Technologies aims to empower individuals and businesses in Africa through digital solutions which drive the vision of a digitally connected future that leaves no African behind. The company encompasses well established and leading technology brands, including Liquid Intelligent Technologies, Africa Data Centres, Liquid Cloud, Sasai Fintech, Vaya Technologies, and Distributed Power Technologies. Cassava Technologies is backed by significant investment and extensive collaboration with some of the world’s largest technology businesses and institutional investors interested in Africa’s nascent but rapidly growing digital economy.

Cassava Technologies is the leading technology enterprise driving Africa’s digital transformation which represents a large and fast-growing addressable market of underserved consumers and businesses. With a total projected population of 1.5 billion¹ and approximately 60%² of the population expected to be urbanized by 2025, there is accelerating demand across the continent for Cassava Technologies’ range of digital services enabled by a digital infrastructure platform of unrivaled scale. The African continent is still marked by low internet penetration and hampered by high costs of internet access despite the projected exponential growth. This, coupled with a significant unbanked population further underlines the huge market opportunity for Cassava Technologies.

Econet Group’s mobile telecoms businesses which include Econet Wireless Zimbabwe, Econet LEO (Burundi), Econet Telecom Lesotho, Econet’s investment in Mascom Wireless Botswana, and Econet’s mobile money business, EcoCash Holdings Zimbabwe are unaffected and will continue to operate under the Econet Wireless brand.

London-based African telecoms and tech entrepreneur Strive Masiyiwa, Founder and Executive Chairman of Cassava Technologies, said: “Technology creates pathways to democratize access to opportunity. Only through accelerating digital innovation in Africa will we empower individuals, families, businesses, and economies to reach their full potential. As Africa’s economy transitions to digital, there is a tremendous opportunity for increasing connectivity to usher in a new wave of digital tools and solutions that will improve the lives of millions of Africans. This is why we have created Cassava Technologies, to make technology as accessible as cassava “fufu” in Africa.”

Hardy Pemhiwa, CEO of Cassava Technologies, said: “We are delighted to announce the launch of Cassava Technologies. Our unmatched fiber broadband, data centres and renewable energy infrastructure, paired with fintech, cloud, cybersecurity, and on-demand digital platforms, will accelerate Africa’s digital transformation. As Cassava Technologies, with a footprint covering more than 15 countries, we are well positioned to meet the growing needs of businesses operating in Africa and expand access to fintech and other digital services to enterprises, small & medium size businesses, and consumers across Africa.”

Cassava Technologies’ businesses and its founder-led management team have a 25-year track record of success and a rich history of innovation in Africa. Cassava Technologies operates the largest independent pan-African terrestrial fiber broadband network, which spans more than 62,000 miles, covering more than 300 towns and cities across Africa from Cape Town to Cairo. It also operates Africa’s largest footprint of interconnected carrier neutral data centers and the Sasai Super App supporting payments and remittances across the continent. This digital infrastructure is the bedrock of Africa’s digita

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Telecommunications

MTN, Telecom Firms Urge Government Support for Tariff Hike Amid Economic Downturn

Published

5 days ago

October 17, 2024

Yetunde Olugbenga

MTN Nigeria and other telecommunication companies have requested that the federal government support their plan to increase tariffs to ensure business continuity.

The request was made due to the current economic downturn that has hindered the operations of many companies.

During a panel session at the 30th Nigerian Economic Summit on Tuesday in Abuja, titled Navigating Business Growth in a Volatile Environment, MTN’s Chief Financial Officer (CFO), Modupe Kadri, highlighted that Nigeria’s economy, impacted by foreign exchange fluctuations, has affected the effective functioning of the telecommunications industry, including MTN.

Kadri noted that with the current economic situation, the electricity and fuel sectors have experienced increases.

He therefore said for the telecom sector to remain viable, the federal government must allow similar adjustments in the telecom industry.

According to him, the telecommunications industry is also facing challenges because much of their equipment is heavily import-dependent. Despite this, the sector has not received regulatory approval to adjust its prices for over a decade.

“For ten years now, telecommunication companies haven’t been permitted to increase prices, and this regulation is not providing us with a level playing field to operate. If we are to stay in business, this policy must be reviewed, similar to how electricity and fuel prices are adjusted to reflect current economic realities,” he stated.

“Our business is mainly dependent on foreign exchange, so customers need to understand that for them to receive the services they desire, it costs money,” he added.

He noted that just like the electricity and fuel industries contribute to the nation’s GDP, the telecommunication industry also contributes to the nation’s GDP, and similar measures should be applied across sectors.

“The telecommunications industry contributes 16 percent to the GDP, and it is not something that you can mess around with,” he reiterated.

Kadri therefore sought government intervention to increase tariffs to ensure business continuity.

Telecommunications

Telecom Firms Face N56 Billion Monthly Diesel Bill Amid Power Woes

Published

4 weeks ago

September 25, 2024

Samed Olukoya

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has said telecommunication companies spend 35 percent of their operating expenses on diesel due to the unreliable electricity supply in Nigeria.

According to industry estimates, telecom operators use an average of 40 million liters of diesel per month to power their sites. The price of diesel jumped to N1,406.05 per liter in August 2024, representing a 64.58 percent increase from N854.32 per liter in August 2023, according to the National Bureau of Statistics (NBS).

This implies that the cost of powering Nigeria’s communication infrastructure surged from N34.17 billion in August 2023 to N56.24 billion in August 2024.

Gbenga Adebayo, President of ALTON, confirmed the current diesel consumption, stating, “It will be over that now.” According to Harmanpreet Dhillon, Airtel Nigeria’s chief technical officer, the telco spent N28 billion on diesel in May 2024.

During a media roundtable, Dhillon said that the company was exploring hybrid solutions—lithium batteries and solar—to lower its energy bill.

McKinsey recently noted that companies could save up to 30 percent on energy costs by adopting renewable energy solutions and other technologies.

“The biggest constraint in the telecom industry is high energy cost. If the government had continued to fulfill its part of the bargain it made in the early 2,000s to provide 18 hours of electricity, the heavy logistics and the capital we spend today from powering sites would not be there,” said Adebayo of ALTON.

Telecommunications

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

Published

2 months ago

August 20, 2024

Samed Olukoya

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.