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Why African startups need to launch in multiple countries – Tizeti CEO

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The Chief Executive Officer of Tizeti, Kendall Ananyi has said that African startups will need to explore launching in multiple countries to hedge against currency risks.

 

Ananyi stated this while sharing his experience investing in over 40 startups in the last eight years via a blog post.

 

According to him, skyrocketing exchange rate has been a major issue for African startups, especially, when they have to provide their investor updates in USD.

 

He noted that by diversifying their geographic presence, startups could mitigate the impact of currency volatility from any single market, adding that this would also help them to stabilize their financial results when consolidated.

 

Justifying the need for launching in multiple countries for African startups, he said:

 

“Hedging currency risk is difficult and startups should explore additional geographies and launch in multiple countries once they are in the growth stage so the effect of one currency doesn’t weigh down their results when consolidated.

 

“For example, the Nigerian Naira might be down in a year when the Ghanaian Cedi is having a great year, or you might get stability from expanding to Francophone Africa and earning FCFA/XOF. The MENA region is also an area to consider to mitigate currency risks as a startup further.”

 

Startup challenges

In his post, Ananyi also identified several hurdles startups must overcome, such as co-founder conflicts and crisis management. He urged founders and entrepreneurs to move on from crises by taking stock, re-strategizing, and continuing to build, emphasizing that mature investors base their decisions on growth and market potential rather than press coverage.

 

While noting that African startups are now facing increased scrutiny due to a lack of governance structure, Ananyi advised startups that are receiving significant investment to adhere to proper governance policies and hold regular board meetings with experienced board members where feasible.

 

Sharing his experience in this regard, he said:

 

“Out of 40+ investments, I only had one startup not launch or show any visible traction. I got no updates and had to chase down the founder to get the documents months after the investment.

 

“One out of 40 is 2.5%. It is a small number but it does exist and has resulted in increased scrutiny of African startups. Naming and shaming haven’t really worked and it’s an open conversation, proper governance should help keep it at the historic low %.”

 

Startup exits

While Ananyi is optimistic about exits in Africa, he noted they may be rare because the majority of current startups were founded after the Paystack exit to Stripe and are less than three years old, or have higher valuations than pre-2021.

 

With this, he said investors are expected to stay longer to see significant returns.

 

He explained that the current young startups need more time to mature and prove their business models before they can attract lucrative exit opportunities.

 

According to him, the inflated valuations seen during the investment frenzy of 2021 and 2022 mean that investors may need to be more patient, holding on to their stakes longer to achieve substantial returns.

 

What you should know

Tizeti, founded by Ananyi, is one of the leading Internet Service Providers in Nigeria with operations in Ghana and Cote d’Ivoire. The company last year secured an undisclosed amount in debt financing from Chapel Hill Denham’s Nigeria Infrastructure Debt Fund (NIDF) to expand its business across West Africa.

 

As a startup founder, Ananyi has continued to invest in other startups.

 

His diverse portfolio spans sectors such as energy, education, financial services, healthcare, food delivery, internet, and space, including companies like BuyPower, Helium Health, Kuda, Brass, Edukoya, Curacel, Topship.

 

Despite a broad portfolio, Ananyi has successfully exited four companies: Paystack, Flutterwave, Reliance Health, and Oxio.

 

Minimum Wage: FG Urges Labour to Settle For What Will Not Undermine Economy, Lead to Mass Retrenchment 

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Minimum Wage: FG Urges Labour to Settle For What Will Not Undermine Economy, Lead to Mass Retrenchment

 

Abuja—Minister of Information and National Orientation, Mohammed Idris, has urged Organised Labour to settle for a national minimum wage that will not undermine the national economy and lead to mass retrenchment of workers.

 

Idris who appealed while declaring open the 2024 Synod of the Charismatic Bishops Conference of Nigeria in Abuja on Wednesday, emphasized the need for a realistic and sustainable wage system that balances workers’ needs with the country’s economic realities.

 

He acknowledged the government’s commitment to reviewing the minimum wage but cautioned against demands that could harm the economy.

 

Idris highlighted the government’s efforts to reduce the cost of living and increase Nigerians’ purchasing power through programs like the Presidential CNG initiative, which aims to cut transportation costs by 50%.

 

He said: “As I have repeatedly said, the Federal Government is not opposed to the increase of wages for Nigerian Workers but we keep on advocating for a realistic and sustainable wage system for the workers – a wage system that will not undermine the economy, lead to mass retrenchment of workers and jeopardize the welfare of about 200 million Nigerians.

 

“We want the Labour Unions to understand that the relief that Nigerians are expecting, and that they fully deserve, will not come only in the form of an increase in wages.

 

“It will also come as efforts to reduce the cost of living and to ensure that more money stays in the pockets of Nigerians. And this is where programs like the Presidential CNG initiative come in. By replacing or complementing petrol usage with CNG, that program alone will cut transportation costs by as much as 50 percent.”

 

The minister appealed to the clergy to support President Bola Ahmed Tinubu’s vision for Nigeria’s renaissance and to pray for wisdom and guidance as the country navigates its current challenges.

 

“Indeed, the Church, throughout our nation’s history, has been a steadfast partner to the government in championing social causes and the provision of essential social services such as hospitals and schools, as well as the inculcation of values in our citizens.

 

“Even as we go through the temporary but necessary hardship, the President is not resting on his oars. He is determined to ensure that as many relief and palliative measures as possible are rolled out for the benefit of every segment of the Nigerian population.

 

“Now, this is where you, as Clergy, as deeply respected religious leaders and influential voices, come in. As a Government, we need your support, your advice, and your feedback.

 

“Very importantly also we need you to be aware of the efforts being made, and the challenges being faced, so that you can help us communicate these to your congregations and the general public.”

 

Noting that President Tinubu stepped into power at the most challenging time for Nigeria, Idris said that the president is working assiduously to ensure sustainable development across the country.

 

He said: “There is no doubt in anyone’s mind that Mr. President stepped up with a great sense of courage and responsibility. In the last year he has been implementing crucial and comprehensive reforms aimed at steering our country back onto the path of growth, prosperity, and sustainable development.

 

“President Tinubu has never shied away from acknowledging the reality of these pains. In his Democracy Day address delivered to the nation just this morning, President Tinubu summed it up very aptly: “The reforms we have initiated are intended to create a stronger, better foundation for future growth.

 

“There is no doubt the reforms have occasioned hardship. Yet, they are necessary repairs required to fix the economy over the long run so that everyone has access to economic opportunity, fair pay, and compensation for his endeavour and labour.”

 

“Indeed, as a nation, we are enduring short-term sacrifice, for long-term benefits. We are inspired by the bigger picture of a Nigeria where no one is left behind.”

 

He hinted that his Ministry would collaborate with the clergymen in the implementation of the national orientation programme, the National Values Charter.

 

“Let me, therefore, say that the Federal Ministry of Information and National Orientation will very enthusiastically collaborate with the Charismatic Bishops Conference as we implement our flagship national orientation programme, the National Values Charter, which seeks to ingrain enduring values and morals in the hearts and minds of our citizens”, he said.

 

He stressed that president Tinubu has availed himself creditably in the implementation of the goals of his Renewed Hope Agenda as Nigerians have continued to witness incremental successes in the various sectors of our economy.

 

“The President has worked very hard to stabilize the economy through the withdrawal of an unsustainable fuel subsidy and the unification of the Foreign Exchange market, as pivotal steps towards redirecting funds to critical sectors like healthcare, education, and infrastructure”, he said.

 

Earlier, the National President of the Charismatic Bishop Conference, Arch-Bishop Leonard Bature Kawas, pledged the unalloyed loyalty and support to the administration of President Tinubu, stressing that they would continue to partner with the government to achieve its vision for Nigeria.

 

He clarified that they invited the Minister, who is a Muslim, to declare their conference open, because they see in him a detribalized Nigerian who harbours no religious differences.

 

Arch-Bishop Kawas said the conference is being attended by bishops from the 36 states of the federation and 21 countries.

 

Rabiu Ibrahim

Special Assistant (Media) to the Minister of Information and National Orientation.

June 12, 2024

 

Photo: Minister of Information and National Orientation, Mohammed Idris (third on the right) the National President of the Charismatic Bishops Conference, Archbishop Leonard Bature Kawas and other bishops when the Minister declared open the 2024 Charismatic Bishops Conference in Abuja on Wednesday

Canal+ intends to maintain MultiChoice’s brands after the takeover.

According to a report, Maxime Saada, Chair and CEO of Canal+, the French media company acquiring MultiChoice, has outlined the company’s plans post-takeover. Saada discussed the future of MultiChoice’s brands like DStv and Showmax, affirming that they will remain unchanged under Canal+’s ownership due to their significant brand value. He stressed the importance of preserving these strong brands unless there is a compelling reason to do otherwise.

“The reality is that we are up against companies like Netflix and Apple, which have a single, powerful brand. However, if you ask me today what I would do, I would definitely not alter the brands. They are highly valued assets,” Saada stated.

The report also indicates that the MultiChoice board has endorsed Canal+’s acquisition bid. This endorsement was confirmed during a press briefing in Cape Town.

Earlier this month, MultiChoice and Canal+ issued a joint statement to shareholders, announcing Canal+’s formal offer to acquire the remaining shares of the South African broadcasting company at R125 per share, marking the next step in the regulatory process overseen by the Takeover Regulation Panel (TRP).

Saada additionally highlighted key distinctions between Canal+ and MultiChoice, underscoring Canal+’s focus on content distribution compared to MultiChoice’s diversification strategy. While Canal+ prioritizes its core business to drive profits, MultiChoice has expanded into sectors such as home security, fintech, insurance, and betting.

MultiChoice Nigeria intends to appeal a ₦150 million fine imposed by the regulator.

On Friday, MultiChoice Nigeria announced its intention to appeal the ruling of the Competition and Consumer Protection Tribunal in Abuja. The company expressed dissatisfaction, claiming that the tribunal breached its right to fair hearing.

The tribunal had fined MultiChoice Nigeria, a subsidiary of the South African-based pay-TV operator, ₦150 million for disregarding a court order that restrained it from increasing the prices of its DStv and GOtv packages. Additionally, the tribunal mandated MultiChoice to offer Nigerians a one-month free subscription on both platforms, DStv and GOtv.

The tribunal’s decision, led by Thomas Okosu and two other panel members, stemmed from a motion filed by Barrister Festus Onifade. Onifade argued that MultiChoice’s 8-day notice of a price increase was insufficient and requested a revision.

In response to the motion (marked CCPT/OP/2/2024), the tribunal had initially instructed MultiChoice to halt its planned price hike until the court could hear and decide on the Motion on Notice. However, MultiChoice proceeded with the price increase, prompting the tribunal’s sanction.

MultiChoice’s appeal is set to challenge the tribunal’s ruling, asserting that the sanction was unjustified and emphasizing their commitment to legal due process amidst regulatory challenges.

Adia Sowho Resigns as Chief Marketing Officer of MTN Nigeria

Adia Sowho, Chief Marketing Officer at MTN Nigeria, has stepped down after approximately three years of service. Following her departure, Ugonwa Nwoye, the current Chief Customer Relations Officer, will serve as the acting Chief Marketing Officer.

During her tenure, Sowho noted that MTN Nigeria’s Consumer Business achieved consistently over 20% year-on-year growth, while the data business experienced record growth of 50% year-on-year and became the first Nigerian telco to launch 5G.

Before becoming the CMO in August 2021, Sowho held various positions at Etisalat Nigeria (now 9mobile), including Head of Strategy and Business Development, Head of Digital Media, and Director of Digital Business. She also led instant lending operations at Migo (formerly Mines), where she was Managing Director and Vice President of Growth, and served as interim CEO of ThriveAgric, an agritech startup.

In a LinkedIn post announcing her departure, Sowho emphasized that partnerships have been central to MTN Nigeria’s growth, highlighting collaborations with OTT providers and OEMs to enhance the digital economy with smartphones.

Gov. Abiodun, Amosun Trade Words Over Severance Packages For Ex-Aides

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Ogun State Governor Dapo Abiodun and his predecessor, Senator Ibikunle Amosun, have clashed over the severance packages of some former appointees of the state government.

 

Governor Abiodun, through his Special Adviser on Information and Strategy, Kayode Akinmade, accused the forum of special assistants who served in Amosun’s administration of blackmail and mischief for complaining about the non-payment of their severance allowances.

 

Akinmade suggested that the affected former political appointees should first blame the “callousness and insensitivity” of their former boss before appealing to Abiodun for redress on “compassionate grounds.”

 

In response, Amosun, through his media aide, Lanre Akinwale, criticised Abiodun’s administration for failing to pay the severance benefits. Amosun asserted that the current administration has deliberately withheld these payments because the appointees served under him.

 

“The Dapo Abiodun-led government needs to be woken from their slumber and reminded that Amosun, during his administration, also paid the severance benefits of political appointees who served during the administration of his predecessor.

 

“Amosun did not ask the affected appointees to resort to begging, appeasing, worshipping, and bootlicking him. He paid it voluntarily, knowing fully well that government is a continuum, and he considered it part of his responsibility to the affected people for their service,” the statement read.

Dangote names the real owners of his new vehicle business

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Dangote has explained that his newly launched project Dangote Sinotruk West Africa comprises a total investment of over $100 million

The billionaire revealed that Dangote Industries owns 60% of the facility, Sinotruk China owns 30%, and Anders owns 5%

Dangote noted that he decided to start truck assembly in response to the need for cars in Nigeria’s logistics, and other industries

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

 

The chairman of Dangote Industries Limited, Aliko Dangote, has revealed the real owners of his recently launched project, Dangote Sinotruk West Africa, a fully knocked down CKD truck assembly plant recently opened in Lagos.

 

Dangote explains why he invested in vehicles

Dangote’s choice to engage in truck assembly is a response to the need for automobiles. Photo Credit: Dangote Group Source: UGC

As a joint venture with a total investment of over $100 million, he stated that Dangote Industries owns 60% of the plant, Sinotruk China owns 30%, and Anders owns 5%. He disclosed this while giving a speech at the plant’s inauguration.

 

Senate President Godswill Akpabio and Lagos state Governor Babajide Sanwo-Olu were present at the June 9 opening ceremony.

 

Why Dangote invested in trucks

In The Cable report, Dangote noted that the company’s choice to engage in truck assembly was a response to the need for automobiles in Nigeria’s construction, food and beverage, and logistics sectors.

 

The billionaire said:

 

“Our aim is to meet the expected current demand of this segment of automobiles required for logistics, construction, food, and beverages industries in Nigeria,”

“I am sure we are going to fully participate in the new CNG, which I think the government is driving. But we in Dangote, we are actually committed to buy 10,000 of the CNG trucks.”

Lagos to purchase 100 trucks

During his speech, Sanwo-Olu stated that because of the local automaker’s dependability, his administration intends to purchase an extra 100 compactor trucks.

 

The governor said:

 

“We have seen the benefit of what they are doing here. We have procured from them compactor trucks that were seen on the road in Lagos.”

“We have also publicly made another order for 100 trucks of the compactors, because we found that they are reliable.”

Also speaking, Akpabio commended the Lagos state governor and Dangote for their efforts in creating jobs for Nigerians and reducing crime in Lagos.

 

Akpabio said:

 

“I am sure even the president of the country will be glad to receive reports from us on what is going on in Lagos, and how you and the governor of Lagos are collaborating together with the federal government to take children off the streets, off criminality, into employment”

Hikmat Thapa, the group’s general manager for projects, said they are handling welding, painting, and major jobs within the plant, adding that their capacity will increase to 30,000 trucks annually with the launch of the plant.

 

Innoson builds multibillion naira factory

Legit.ng reported that Innoson Vehicles Manufacturing Company Ltd (IVM), Nnewi, has built a new multibillion-naira factory to begin producing heavy-duty vehicles and various buses using Compressed Natural Gas-powered engines.

 

According to the corporation, the car plant can produce up to 30,000 vehicles annually.

 

The move comes after President Bola Tinubu’s recent directive to the federal government ministers, departments and agencies to start purchasing compressed natural gas power vehicles.

 

Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.

 

Source: Legit.ng

CBN reveals stance on revoking licenses of Wema, Polaris, Unity Banks

The Central Bank of Nigeria has said there is no plan to revoke the licenses of Wema, Polaris and Unity Banks.

 

The acting Director of the Corporate Communications Department, Mrs Hakama Sidi Ali, on Monday, made this clarification in a statement.

 

Recall that a circular made the round on Monday suggesting that the apex bank has dissolved the boards of the three banks barely after revoking the license of Heritage Bank.

 

However, the apex bank spokesperson described the claim as false.

 

CBN reassured members of the banking public of the safety of their deposits and the banking system’s resilience.

 

“Without prejudice to the ongoing recapitalization process, I want to restate that the Nigerian banking industry remains resilient.

 

“Key financial soundness indicators remain within current regulatory thresholds.

 

“Customers are, therefore, encouraged to proceed with their transactions as usual, as the CBN is committed to ensuring the safety of the banking system,” she stated.

 

On June 3, CBN announced the withdrawal of license for Heritage Bank over poor financial performance.

 

To quell public panic, the Nigerian Deposit Insurance Corporation, NDIC assured Heritage Bank depositors that it had already begun the process of repaying their money.

 

Lagos State Government seeks FG’s approval to inspect out-of-state freight vehicles on federal highways

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LASG seeks FG’s approval to inspect out-of-state freight vehicles on federal highwaysLGis

The Lagos State Government has announced that it is intensifying efforts with the federal government, via the Federal Road Safety Corps (FRSC), to permit state authorities to inspect freight vehicles entering the state on federal highways.

 

This development is detailed in the recently unveiled Lagos State Transport Policy, which outlines a series of actions adopted by the government to address the city’s interrelated mobility challenges and achieve its transportation goals.

 

According to Section 4.8 of the policy: Urban Road Freight, the Lagos State Government’s request to inspect vehicles coming into Lagos on federal highways is part of the state’s efforts to ensure efficient urban freight movements.

 

“The State will intensify its coordinating efforts with federal authorities (via FRSC) to either upgrade standards nationwide or to permit Lagos State to inspect vehicles entering the State on Federal Highways,” a portion of Section 4.8 of the policy reads.

 

The policy noted that while the Vehicle Inspection Service (VIS) is ramping up inspections of vehicles registered within Lagos State, out-of-state tankers and trailers delivering to or picking up from Lagos ports bypass these inspections.

 

Hence, the request for approval to inspect out-of-state freight vehicles.

 

According to the policy, particularly Table 5.1.5.1 Policy Area: Urban Road Freight, the timeline for implementing this initiative to inspect and ensure compliance of vehicles registered outside Lagos with Lagos vehicle maintenance standards is two to five years.

 

More insights

Regarding the operations of freight vehicles within Lagos State, Section 4.8: Urban Road Freight of the Transport Policy emphasizes that “Forthwith, tankers and trailers are expected to use only routes designated for their use, with those transporting oversized and/or hazardous goods expected to fully comply with applicable regulations.”

 

This directive aligns with the overarching goal of improving road safety and efficiency in urban freight movements within Lagos State.

 

The implementation for freight vehicles to use only designated routes is slated to begin immediately, underscoring the urgency of the Lagos State Government’s efforts to enhance urban road freight operations.

Compliance by these vehicles on designated lorry routes will be strictly enforced, as trucks travelling on roads not built for their use cause significant damage, the policy stressed.

Furthermore, the policy notes that the Lagos Ministry of Transportation will undertake a study to review the nature and extent of the existing designated routes. The aim is to ensure their suitability, remove potential obstacles, improve signage, and promote public awareness. Ultimately, the goal is to expand such routes.

Additionally, the policy reveals that the Lagos State Government will continue to work with the Nigerian Ports Authority (NPA) and relevant agencies to increase the availability of dedicated port backup facilities, such as fit-for-purpose truck parking and waiting areas.