Tech

5G to generate $26 billion for Africa by 2030, GSMA says

Published

2 years ago

January 4, 2023

The Groupe Speciale Mobile Association (GSMA) an association that represents the interests of mobile operators and the broader mobile industry globally, has predicted that the 5G network will generate $26 billion for Africa by 2030.

In a report released by the body on Wednesday titled “5G Africa: realising the potential”, the GSMA said 5G-related activities have begun to pick up across Africa, including spectrum auctions, pilots and commercial trials, as well as efforts to develop locally relevant 5G use cases, the report found.

The report signed by Angela Wamola, Head of Sub-Saharan Africa at GSMA, said what the projection means is that 5G will account for 20% of mobile connections in Africa by 2030, with the belief that retail, manufacturing and agriculture, will be among the sectors that will see the most impact.

“5G in Africa is a matter of when, not if. The decision on when to launch 5G is often based on a number of factors in the local market that reflect the readiness of operators to roll out 5G networks and readiness of customers (consumers and enterprises) to adopt 5G services and 5G-enabled solutions,” Wamola said.

“Ready or not, the 5G era has already begun in Africa. This will be driven not only by the benefits of the network economics and innovation that this evolutionary broadband technology promises, but also by the region’s digital natives who will be front and centre in fuelling consumer interest in non-connectivity offerings, such as video and music streaming, gaming and metaverse applications,” she added.

The GSMA also predicts that by the end of this decade, there will be more than 340 million 5G connections in Africa, equivalent to a fifth of total mobile connections. Together, 4G and 5G will account for nearly two-thirds of total mobile connections at the end of 2030.

“5G networks bring substantial improvements over previous generations, including higher connection speeds, greater capacity and lower latency.”

“With this increased performance, 5G networks can enable new use cases and applications that will positively impact many industry sectors,” the report said.

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Tech

MTN Nigeria set to acquire two more licences for its fintech

Published

12 hours ago

November 7, 2024

Isaac Dachen

Nigeria’s largest telecommunications company, MTN Nigeria, is on the verge of obtaining two licences that will enable it expand its fintech subsidiary, MoMo PSB, signaling an increased focus on digital payments within Nigeria.

The company, in a statement on Wednesday, said it has applied for Payment Service Solutions Provider (PSSP) and Payment Terminal Service Provider (PTSP) licenses for Momo in a bid to upscale it to a full fledge payments platform.

“The PSSP license will enable MoMo PSB to offer payment processing gateways, create financial solutions, and provide merchant aggregation and collection services,” the statement said.

“With this license, MTN can process its payments in-house, reducing its reliance on external PSSPs and minimizing associated costs.

“In addition to addressing MTN’s internal payment needs, MoMo PSB will also be equipped to handle payment processing requirements for merchants and partners.

“The PTSP license, meanwhile, will allow MoMo PSB to deploy and service POS terminals, develop POS applications, and provide training and support to over 302,000 merchants, agents, and 5.3 million users on the MoMo PSB,” it added.

Tech

Kenyan fintech Chumz expands into Rwanda after hitting 200k users

Published

1 day ago

November 6, 2024

Isaac Dachen

Kenya’s fintech startup, Chumz, has announced its imminent expansion into Rwanda after hitting 200,000 registered users in its home market.

Chumz, which helps users set and achieve saving and investment goals through behaviour-based prompts and mobile money deposits, said the expansion drive was part of testing its solution by going live in Rwanda.

Co-founder and CEO of Chumz, Samuel Njuguna, who spoke on the move, said the fintech had built a goal-based mobile app that helped users save and invest money from their mobile money accounts, with as little as $0.05 and wanted to take its offering out of Kenya.

He stated that one of the unique features of Chumz that stands it out is that it encourages users to save based on their behaviour.

“For instance, if a user spends money at a pub, the app suggests investing some of that money instead of spending it all,” he said.

“Similarly, if a user receives mobile money, the app prompts them to save some of the money. Our app offers an easy, convenient and accessible way for users to save and invest, helping them to reach their financial goals.

“Our next big leap is to hit one million users in Kenya by 2026 and be operational in Uganda, Tanzania and Botswana by then as well,” said Njuguna, who is also behind Kenyan mobile money startup Chura.

Founded in 2019, Chumz worked on a prototype in 2020, reaching out to the regulator for a license in late-2020 and receiving one a year later.

According to several reviews, the platform works by channeling funds collected from a user’s mobile money account to a licensed fund manager, who then offers a return to the fund. Earned interest is then redistributed to individual clients.

The startup has also launched a new feature, the Superfan Challenge, where users save and invest based on their favourite football team’s performance.

“For example, if your team wins, the app prompts you to save a set amount. We have seen segments such as parents using the app to educate their kids about financial literacy and at the same time create goals for them on the app. A majority of the savers and investors are women,” Njuguna said.