Tech

Taxes, duties affecting mobile phone usage in Nigeria— Report

Published

11 months ago

November 19, 2023

The Global System for Mobile Telecommunication Association (GSMA) has drawn attention to the detrimental effects of taxes and duties on smartphone adoption in Nigeria, Africa’s biggest tech base, and the continent at large.

The GSMA study claims that taxes and duties raise smartphone prices by 10 to 30%, depending on the African nation, making the device less accessible for a large number of people.

According to GSMA’s “The Mobile Economy in Sub-Saharan Africa (2023)” report, manufacturers in SSA face difficulties in producing affordable devices due to high manufacturing costs, particularly in the 5G and 4G markets.

According to the report, 60% of Africans lack mobile internet access despite coverage, and smartphone affordability is still a major barrier to mobile internet usage in the region.

At the beginning of 2023, 122.5 million Nigerians were online, with a 55.4% internet penetration rate. In the same year, 193.9 million cellular mobile connections were active, which is equal to 87.7% of the country’s total population.

During the week, the Network Service Providers Association of Zambia (NSPAZ) announced that from January 1, 2024, the cost of fixed internet services would increase by 17.5%, also posing a threat to internet and mobile phone use in the country.

The GSMA research complimented cooperative efforts between operators and manufacturers to address these issues which have resulted in a recent drop in the average selling price of smartphones.

The proliferation of smartphones under $100, especially from Chinese brands such as Tecno, Itel, and Infinix, has been instrumental in democratising smartphone access.

Moreover, operators are working in tandem with manufacturers to control expenses and provide consumers with financing options, which is supporting continuous initiatives to improve the region’s digital penetration, the report notes.

Related Topics:Featured Nigeria smart phones

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Tech

Rwanda’s e-mobiility startup IZI expands electric bus fleet after getting grant from Green Fund

Published

1 day ago

October 21, 2024

Isaac Dachen

Rwanda’s e-mobility startup, IZI, has announced the delivery of five electric buses to Kigali, the country’s capital city, after obtaining a substantial grant from the Rwandan Green Fund.

IZI, a frontrunner in electric vehicle solutions which says it is on a mission to electrify Rwanda’s public transport sector, has, in just four months of operation, grown its initial fleet of five electric buses to an enviable height.

CEO of the startup, Alex Wilson, believes the grant is a testament to the success story of IZI.

“These results validate our E-Mobility-as-a-Service model. We’re not just reducing emissions; we’re proving that sustainable public transport is economically viable in Africa.

“Building on this success, IZI has secured an RWF 300,000,000 grant from the Rwanda Green Fund to deploy five additional electric buses in Kigali.

“These vehicles will represent the most advanced public transport in Rwanda to date, boasting features such as an independent intelligent driver’s cabin, air suspension balanced driver’s seat, full LCD dashboard, one-step entry, and a flat-floor design for improved passenger comfort,” he said.

He added that the success of IZI’s pilot has led to strong demand from other Rwandan public bus operators.

“IZI has now signed contracts with 4 leading transport companies for the deployment of over 100 buses, marking a significant expansion of its operations.

“Looking ahead, IZI plans to establish a state-of-the-art battery maintenance and repair facility in Kigali, supporting the entire EV ecosystem in Rwanda and positioning the country as a centre of innovation in the EV industry,” he added.

Tech

Nigerian fintech Yellow Card raises $33m to fund expansion drive

Published

4 days ago

October 19, 2024

Isaac Dachen

Nigerian-based pan-African fintech, Yellow Card, has announced raising U$33 million in Series C funding to enable it drive its global expansion and strategic initiatives, taking its total equity funding to $85 million.

In a statement announcing the funds, Yellow Card’s co-founder and CEO, Chris Maurice, said the capital would be applied to fund growth and expansion, particularly through enhancing Yellow Card’s API and widget products— the gateways for international businesses, including Coinbase and Block, to tap into African markets and for Pan-African companies to easily make international payments and manage their treasury via stablecoins.

“This fundraise not only demonstrates our resilience, but also highlights the vital role of digital assets for businesses across Africa,” said Maurice.

“We are excited about the opportunities, partnerships, and journey ahead; and I’m proud to work with an incredible cohort of investors that share our vision for the industry and the continent.

“Additionally, Yellow Card is developing innovative new products for the continent, strengthening its team and systems, and continuing to lead engagement with regulators across the continent,” Maurice added.

Founded in 2019, Yellow Card has steadily become the largest and first licensed Stablecoin on/off ramp on the African continent with operations spanning 20 African countries and over $3 billion in transactions facilitated across the continent.

In September 2022, the startup had announced the close of its $40 million Series B funding round, and has now followed that up with a $33 million Series C round, led by Blockchain Capital, with participation from Polychain Capital, Third Prime Ventures, Castle Island Ventures, Block, Inc., Galaxy Ventures, Blockchain Coinvestors, Hutt Capital, and Winklevoss Capital.

Speaking on the funding, Aleks Larsen, General Partner at Blockchain Capital, said the future of payments lies in fast, affordable rails for everyone, powered by open networks.

“We couldn’t be more excited to back Yellow Card as they bring Africa on-chain with stablecoins,” Larsen said.