African Tech Round-Up

The gravy train may well be over at Africa’s largest tech company (by market value)— Naspers. Naspers CEO, Koos Bekker, told investors late last week that the coming year is going to be a trying one for the company. At this point, Naspers has only one card up its sleeve, and it’s called Tencent Holdings. After all, Naspers’ 33 percent stake in the Chinese technology company currently accounts for almost half its revenue, and its internet and pay-tv businesses are stalling at a time when they desperately need growth to keep competitors like Google, Facebook and Amazon at bay. Bekker’s cautionary statements led to a 0.3 percent decline in the firm’s share price-- which seems like a tame reaction by the market considering that S&P Global Ratings had already changed its outlook on Naspers' credit rating to BBB-, which is only one step up from junk status. In short, it’s rough in these streets. Last week saw DEMO Africa hosted in Southern Africa for the first time in its five year history. DEMO Africa 2016 wen

Econet Wireless has recently announced that all ±40 million of their subscribers in Africa will benefit from Shine’s ad blocking service— starting with those in Zimbabwe. This deal represents Shine’s first deployment on the continent, following partnerships they’ve struck with the likes of the Caribbean mobile operator, Digicel, and Three Group in the UK and Italy. There’s no doubt about it, life is about to get a little tougher for online media platforms that rely on ad revenue to survive, as well as for web marketers that peddle online real estate. However, Econet’s subscribers are likely to relish the prospect of enjoying quicker loading times, and cleaner web pages free from unsolicited advertisements. In this week’s African Tech Round-up, Andile Masuku chatted with Scott Lyons of the Ford Motor Company. Scott leads Ford’s SYNC AppLink European Business and the Partner Development Initiative within the Ford Connected Vehicle and Services Organisation. Their conversation touched on Ford’s plans to produce

Safaricom and Craft Silicon both took an “L” this past week. As it turns out, they neglected to trademark the Little Cabs brand name before launching their ride-sharing service some weeks ago. And now, they’ve had to drop the word “Cab” from their brand after the “Little Cab” trademark-holder went to court to defend his right to use that name. From now on, they are to be known as Little. The whole situation is more than a little embarrassing to say the least, and reminds me of the wisdom MiPhone Founder and CEO, Alpesh Patel shared on the show some months ago, about how important it is to “dot the i’s and cross the t’s” when it comes to securing one’s commercial intellectual property. Nevertheless, I’m sure the folks at Safaricom and Craft Silicon have learned their lesson. This week’s African Tech Round-up also features a chat Andile Masuku had with Brendan Horan. Brendan is an executive vice president of MiX Telematics— a fleet and mobile asset management solutions business that’s listed on both the Johanne

Babusi Nyoni is a Cape town-based Zimbabwean digital all-rounder. Babusi is the Digital Creative Group Head at South Africa’s #1 ranked through-the-line agency, M&C SAATCHI Abel. Andile Masuku catches up with Babusi to discuss an AI-enabled campaign he recently masterminded and executed for a global FMCG brand, and to chat about the rise of machine learning and artificial intelligence in general. Tune in to hear him factor in on what the world might look and feel like when those technologies become common-place.

MTN Group’s warning that their interim financial results for the period ending June 30th 2016 would be unpleasant did a lot to absorb the shock when reality struck last Friday— the day the report eventually dropped. Despite revenue for the interim period improving by ±US$5.7 billion, MTN reported an after tax loss attributable to equity holders of just over US$401 thousand. That translates to a headline loss per share of nearly US$0.20. Compare that with 2015’s headline earnings of just under US$0.48 per share, and it’s sobering to see how humbling this must be Africa’s largest mobile service provider. As expected, the mobile telco has put forward a long list of explanations for what went wrong. One of the more interesting items on that list is what they are calling “short-term losses” they’ve sustained thanks to their significant investments in Middle East Internet Holdings and of course, the recently rebranded Africa Internet Group— which now goes by Jumia. We would love to know what’s going through the min

Who knew that a little quarterly update by a publicly-traded Swedish investment firm could get Nigeria’s e-commerce fraternity all worked up? Not we. So, as Kinnevik was going about its business last week, the firm released its Second Quarter Report which detailed the performance of its subsidiaries around the world. That simple act of due diligence on Kinnevik’s part (which admittedly is something that happens every quarter without fail, but only garnered media attention in Nigeria this time round) allowed us all to get a sense of just how well Nigeria’s biggest e-commerce platform, Konga, is doing— which in turn fuelled speculation around the health of Nigeria’s e-commerce sector in general. Perhaps the most shocking revelation contained in the report was that Konga only has 184,000 active customers— which translates to approximately 1.1% of the Nigerian population. In a word, that number is disappointing. It has lead to vigorous debate both on social media and in the blogosphere about why Nigeria’s e-comme

Data costs need to come down significantly if Africa is ever going to realise the dream of making access to the internet available to every single person living on the continent. As things stand, according to a new research report by Global Market Insights, an estimated 590 million Africans still do not have access to electricity, to say nothing of reliable web access. However, South Africa’s largest telecoms operator, the government-owned Telkom, has announced some game-changing 4G/LTE data-led mobile packages that may signal the beginning of the end of exorbitantly high data prices in that country. Aside from throwing down the gauntlet towards its rivals, Telkom seems to be committing to a business model that seeks to sign up the masses and incentivise them to consume ever increasing amounts of data, as opposed to attempting to profiteer in the short to medium term. What’s not to love about that? Also in this week’s African Tech Round-up, I speak to Frank Schutte, the former Retail Product & Marketing M

Jaco Van Zyl is the co-founder and MD of the South African startup, PulseIt— a company which is looking to give online voucher firms like Vouchercloud, Groupon and Shazam a run for their money. In this chat Jaco Van Zyl explain swhy so many VC’s and African tech firms seem quite bullish on the online voucher business, and why he thinks his startup has what it takes to steal market share from more established international players and fend off newer players like ttrumpet who are just as hungry for success as he is.

There’s no doubt that online education is a hot ticket at the moment. While the folks at Andela are probably still celebrating landing $24 million worth of investment courtesy of the Chan Zuckerberg Initiative and others, the New York-based Codecademy has closed a $30 million Series C investment round led by Naspers, through its Naspers Ventures division. Codecademy plans to use the funds to extend its global reach, build its mobile presence, and beef up its course content. It does seem that formal education business is well and truly on its way to being disrupted. In this week’s African Tech Round-up, Andile Masuku catches up with Jaco Van Zyl, the co-founder and MD of the South African startup, PulseIt— a company which is looking to give online voucher firms like Vouchercloud, Groupon and Shazam a run for their money. Andile asked Jaco to explain why so many VC’s and African tech firms seem quite bullish on the online voucher business, and why he thinks his startup has what it takes to steal market share fr

Last week, the global digital behemoth that is Facebook announced that they’ll be rolling out the OpenCellular system worldwide. OpenCellular is said to be an inexpensive, weather-resistant and fully customisable platform that will be able to serve as a wireless access point for connecting devices using 2G, LTE or even Wi-Fi. While this move by Facebook is no doubt just a footnote in the company’s playbook for achieving complete digital dominance, one wonders if this could signal the beginning of the end for the likes of Kenya’s BRCK— a home-grown system designed to do exactly what OpenCellular promises to do, perhaps less reliably. One wonders if there is any chance that a minnow like BRCK can stand up to the fire and might of a beast like Facebook? It seems unlikely that BRCK has captured enough of the affordable WiFi deployment market to develop a legitimate first-mover advantage, and it’s equally unlikely that anyone over at Facebook is losing any sleep worrying about their plans being disrupted by smalle

It’s the 4th of July, and in honour of the fact that our biggest audience outside of Africa is based in the USA, this week’s African Tech Round-up episode has a decidedly American spin. Playing guest-host in this instalment is very good friend of the show, aka “The American Homie”, Trevor Wolfe— Co-founder and CEO of Delvv.io. Trevor is fresh off a plane from Europe and the States where he’s successfully closed a round of funding for his crowdsourced research startup. In addition to factoring in on the week’s headlines, Trevor shares some interesting insights on what it takes to launch and operate a tech startup on the continent, while maintaining a global outlook. But that’s not all, folks… This week’s show also features two Stateside-based personalities who are extremely active on Africa’s tech scene— namely, Maya Horgan Famodu, Founder and CEO of Ingressive, and Toro Orero, Co-founder and Managing Partner, at DraperDarkFlow. Listen in to hear Maya share some of what she’s observed while leading high profil

One of the more surprising things that came out of a recent conversation Andile Masuku had with BT’s Managing Director for Sub-Saharan Africa, Oliver Fortuin is his answer when asked (somewhat unfairly) what disruptive trend could potentially render BT redundant in the next decade. His answer? The trend towards consolidated media ownership. Listen in to this week’s African Tech Round-up to hear Oliver unpack that answer. Meanwhile, the French Urban television network Trace TV’s acquisition of Kenyan, pan-African VOD service Buni.tv made headlines last week. Buni.tv is believed to be one of the largest African VOD services offering home-grown content. Trace TV has revealed that this acquisition is part of their plans to gear up for the launch of a VOD platform called Trace Play later in 2016. Now, it does seem that aside from keeping an eye out for competitors like iROKOtv, DSTV and Netflix, aspiring VOD service providers like Trace TV might do well to anticipate the moves being made by the likes of South Afri

Despite the considerable push-back Uber has experienced in certain African markets, the firm’s march towards utter and complete world domination continued last week as they launched in Tanzania’s capital city, Dar es Salaam. Dar es Salaam is the 3rd African city Uber has taken to in as many weeks (following Luanda, Uganda and Accra, Ghana) and their 475th location worldwide. Since launching in Johannesburg in 2012, Uber has quietly gone about silencing many of the doubts that sceptics have had about the viability of their business model in African markets that typically show little regard to hype-driven startups that roll in from the West expecting an easy ride. (No pun intended.) Basically, what might have appeared to some as being a casual African safari is gradually developing into a case study on lean, mean execution. Only time will tell if a home-grown platform like Little Cabs— the ride-hailing service Safaricom is set to launch, will be able to rain on Uber’s parade. Be sure to listen into this week’s

Ever wonder what it might be like to run a startup that’s owned by a successful tech company, backed by one of Africa’s wealthiest entrepreneurs? Well, one thing is for sure— it’s no walk in the park. At least, that’s according to Charles Murray. Charles is a director of a messaging and internet calling app called ttrumpet that’s looking to capture a big share of Africa’s digital vouchering market. ttrumpet-- dubbed a "lifestyle app", is a subsidiary of Fastcomm, a tech group that boasts having billionaire businessman Patrice Motsepe as one if its shareholders. In this conversation, Charles tells Andile Masuku why he reckons that ttrumpet isn’t just another mobile app, and shares how his company plans to thrive in an ever changing social media landscape.

On Friday, June 10th 2016 MTN’s stock price on the Johannesburg Stock Exchange jumped by 20%. This happened in the wake of the news that the firm’s nine-month Nigerian nightmare might finally be coming to an end. MTN has reportedly struck a deal with the Nigerian government, and is set to pay the Nigerian Communications Commission (NCC) $1.7 billion over three years— significantly less than the $5.2 billion they were initially fined for flouting SIM card registration regulations months ago. While MTN’s shareholders are no doubt breathing a sigh of relief, the company is not out of the woods yet, as according to the NCC, one of the conditions linked to the monetary settlement is the requirement that MTN list its Nigerian subsidiary on the Nigerian Stock Exchange “as soon as is commercially and legally possible”. While the jury’s still out on whether this is the last we’ll hear of this story, one thing is certain, this case sets one heck of a precedent, and that can only bode well for corporate Africa. Also in

If there were a race to being Africa’s largest media and internet company, out of fairness to other firms in the running, Naspers would probably be asked not to enter. After seeing its share price rise to an all-time high on the Johannesburg Stock Exchange last week— reaching R2,320.73 per share, pushing its market value to R1,02 trillion (±$6,7 billion), it’s now a matter of “catch me if you can” as far as any of the firm’s competitors closing in on them. In this week’s African Tech Round-up, Andile Masuku shares some of the reasons why Naspers stock is such a hot ticket at the moment, and dishes on the firm’s latest high-profile investment in a popular American e-learning platform. Andile also catches up with the Founder of Venture Capital For Africa (VC4A), Ben White. Ben’s organisation has recently published a report called the 2016 Venture Finance in Africa which highlights growing investor appetite in African early stage startups. Listen in to hear him unpack some of their findings, and give Andile a se

Turns out Ghana’s top cop— Inspector General of Police John Kudalor thinks that blocking social media access across the country might be necessary to ensure Ghana’s national security on election day in November 2016. Mr Kudalor reckons that Ghana might do well to learn from the example set by other countries on the continent and around the world that have take similar steps in the recent past— Uganda no doubt being top of mind. It's likely that the Inspector General’s comments might have been made to test public sentiment on the issue ahead of the polls. However, if the chill we're picking up on Twitter is anything to go by, Ghanaians don’t seem to be terribly concerned at the prospect of having to survive 24 hours or so without access to Facebook and Twitter come November 7th. Ah, well… Meanwhile, in place of our discussion segment on the African Tech Round-up this week, we feature part of a recent in-depth conversation Andile Masuku had with Stephen van Coller, who is the Chief Executive for Corporate and I

Brian Anderson is the Head of Sales and Business Development at Fidelity National Information Services (FIS), a NYSE-listed firm specialising in banking and payments technology as well as consulting and outsourcing solutions— which acquired one of the world’s leading financial software and technology services companies SunGard in 2015. The company services 20,000 clients in 130 countries and has 55,000 employees and $9.3 billion in revenue. Brian speaks to Andile Masuku about the company's next big idea targetting developing markets in Africa-- an online stokvel (savings club) solution.

Late last week a violent attack on two Uber partner vehicles in the Sandton Central Business District led to the injury of three police officers who attended the scene to calm things down, and also resulted in the damage of two law enforcement vehicles. The assault on the Uber partners’ cars is said to have been carried out by a group of meter taxi drivers unhappy with Uber’s disruption of their livelihood. One man has reportedly been arrested in connection with the incident. Meanwhile, the quiet chat with Brian Anderson featured in this week’s African Tech Round-up in place of our regular debate segment takes on a decidedly more civil tone. Brian is the Head of Sales and Business Development for Africa at NYSE-listed banking and payments technology firm, Fidelity National Information Services (FIS)— the company that acquired financial software company SunGuard late last year. Listen in to hear Brian talk to Andile Masuku about an ambitious new platform that FIS is poised to launch to help promote financial i

Vodacom is finally pulling the plug on their disastrous six-year attempt to roll out M-Pesa in South Africa. (The service will be shut down on June 30th 2016.) Funny thing is, Vodacom CEO Shameel Joosub has blamed his company’s diabolical failure to meet their target of enlisting at least 10 million active users on South Africa’s relatively well-established banking industry. (By the end of 2015 they had only managed to onboard a paltry 76,000 active users.) However, Joosub’s assertion does not sit well with our guest on this week’s episode of the African Tech Round-up— the brilliant and insightful, Dominique Collett. Dominique knows a thing or two about what works and what doesn’t in terms of mobile money innovation on the continent. Following a successful exit at the incredibly successful fintech startup she co-founded-- Tyme (acquired by the Commonwealth Bank of Australia for a rumoured ±USD30 million), Dominique has gone on to become a financial services investor and innovation architect who is now a Senio