Connect with us

Telecom

MFS Africa Acquires Baxi, Expands into Nigeria

Published

on

Kindly share this post

MFS Africa, has announced a signed agreement to acquire Nigeria’s super-agent networks, Baxi.

“Nigeria is home to one of the most dynamic markets on the continent; it is Africa’s largest economy and home to the largest number of SMEs. It is also the largest remittance market in Africa and home to one-third of intra-Africa remittance flows.”

MFS Africa’s presence in Nigeria to date has been limited given the country’s small number of mobile wallets. With the acquisition, MFS Africa will expand its pan-African network into Nigeria, connecting Nigerian businesses to the continent and the rest of the world.

“This deal is a pivotal step in our journey. By combining Baxi’s network of SMEs operating as agents with our pan-African network, we aim to take Nigeria’s SMEs to the rest of Africa and the world. Our expansion into Nigeria brings us one step closer in our mission of making borders matter less,” said Dare Okoudjou, MFS Africa founder and CEO.

Founded in 2014 by Degbola Abudu and Folu Majekodunmi, Baxi is one of Nigeria’s largest independent SME-focused electronic payment networks.

Baxi provides a cash-in/cash-out offering as well as value-added services including account opening, money transfer, bill payment, among others, to the last mile. Through its network of more than 90,000 agents, Baxi has already processed over $1 billion in transactions this year.

Following the acquisition’s close, MFS Africa will build Baxi into a key node on its digital payment network, allowing customers to make regional and global payments to and from Nigeria.

MFS Africa will also expand Baxi’s proposition for offline SMEs to select markets within MFS Africa’s footprint of 320 million mobile wallets across more than 35 African countries.

Previous restrictions to mobile network operators’ participation in mobile money services have restrained the sector’s growth in Nigeria.

To serve the more than 55% of Nigerian consumers currently excluded from formal financial services, Nigerian fintech that has built strong agent networks are the crucial interface to reach Nigeria’s 31,000,000 financially underserved and 67,000,000 financially unserved populations.

Supporting and nurturing SMEs is crucial to Nigeria’s economy, as they contribute 50% of Gross Domestic Product and provide 76% of jobs. With its presence in 36 Nigerian states, Baxi fills a critical gap by providing unbanked Nigerians and informal SMEs access to financial services.

The focus areas of both companies are complementary. Baxi simplifies and integrates online and offline payments for SMEs and merchants in Nigeria through its omni-channel distribution network. MFS Africa simplifies cross-border payments, integrating payments via one hub.

“We’re thrilled to partner with the MFS Africa team to expand our service offering for individuals and SMEs. We believe that we’ve barely scratched the market’s potential. Only 3% of Nigerian SMEs have access to credit products. By teaming up with MFS Africa, and with the strong support of our local commercial banking partners, we can offer more value-added products and services, such as cross-border payments, to support Nigerian SMEs in their growth,” said Degbola Abudu, Baxi CEO.

Following the acquisition of Beyonic in 2020, MFS Africa continues to accelerate and lift its growth with strategic investment and acquisition, which are actively supported by its shareholders. LUN Partners Financial and FT Partners served as financial and strategic advisors to MFS Africa in this transaction.

PWC Nigeria and Nihilent advised MFS Africa on Commercial, Product and Technological due diligence. Da Hui and TNP were legal advisors to MFS Africa. Baxi was advised by financial advisor Verdant Capital and DAI Magister. Their legal counsels were Udo Udoma & Bello-Osagie (UUBO) in Nigeria and Akin Gump Strauss Hauer & Feld LLP in London.

 

 

 


Kindly share this post

Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

Telecom

Airtel Africa Completes $550m Bond Repayment

Published

on

Kindly share this post

Airtel Africa, telecommunications and mobile money services provider, has revealed that its subsidiary, Bharti Airtel International (Netherlands) B.V., has repaid in full its $550m bond maturing Monday.

Airtel Africa Completes $550m Bond Repayment

 

This was disclosed in a corporate filing with the Nigerian Exchange Limited (NDX) signed by G Simon O’Hara, group company secretary, on Monday.

With this repayment, the company said that it had achieved a zero-debt position at the HoldCo.

The $550m bond was 5.35 per cent Guaranteed Senior Notes.

“This bond repayment of $550m has been made exclusively out of cash reserves at the holding company and is a continuation of its strategy to reduce external foreign currency debt. At the time of the IPO in June 2019, the group had $2,719m of external debt at HoldCo which resulted in significant exposure to currency fluctuations and the reliance on upstreaming funds to cover both interest costs and the principal repayment.
“Through consistent execution of its strategy supporting strong free cash flow generation, and continued upstreaming success, the group has been reducing Holdco debt over the past few years and has now reached the significant milestone of a zero-debt position at HoldCo. The current leverage and capital structure is a reflection of the Group’s successful capital allocation strategy that has been in place since our IPO, and it will aim to continue reducing foreign currency debt obligations across its OpCo’s,” part of the statement from the telecoms provider said.


Kindly share this post
Continue Reading

Telecom

Open Access Data Centres Recognize Sustainability as Key in its Operations – Aduloju

Published

on

Kindly share this post

Mr Olatunji Aduloju is Operations Manager at Open Access Data Centres (OADC) on Sustainability in Data Centre Operations.

He has an enviable career in operations of data centre, and has worked with CWG plc where he managed the company’s data centre for over 5 years before joining OADC few years ago.

In this interview, he explained the driving force behind WIOCC and OADC sustainability efforts. WIOCC Group is the parent company of WIOCC- Africa’s digital backbone and OADC.

What does sustainability mean to WIOCC and Open Access Data Centres and how driven is the company on sustainability and the environment?

Sustainability encompasses a variety of obligations that are inherent in conducting business responsibly. For WIOCC and OADC, this includes:

  • Leadership within the ICT industry, and regional bodies, and active engagement in industry organisations and events. For example, the CEO of OADC serves as Chairman of the Africa Data Centres Association and is a member of the Science and Technology Committee of the Lagos Chamber of Business and Industry. OADC also participates in the Infrastructure Masons Climate Accord which demonstrates our commitment to global initiatives focused on carbon accounting and reduction.
  • Corporate social responsibility initiatives through which we make a positive impact on the communities amongst whom we operate. For example, OADC has served as a strategic partner for the STEAM UP programme in Lagos for three consecutive years. This mentorship program aims to inspire, motivate, and guide young girls in pursuing studies and careers in the fields of Science, Technology, Engineering and Mathematics, by connecting aspiring female scientists in secondary schools with professional women working in STEM fields.
  • A comprehensive sustainability strategy across the entire WIOCC Group, and robust systems and processes to effectively manage environmental and social risks across our operations. In practice, this includes initiatives such as using acoustic panels in our power farm to stop reverberations and high levels of noise.

How concerned is WIOCC & Open Access Data Centres about sustainability especially when it involves the environment more especially when it comes to Data Centres operations?

WIOCC and OADC recognize that sustainability is a paramount consideration in the development and operation of data centres. With increasing energy consumption and carbon emissions associated with digital infrastructure, we are committed to operating sustainably.

We apply competitive sustainability standards during the design, building and operation of our data centres. This ensures that our facilities are both hyperscale-ready for clients, and meet global investor requirements for managing environmental and social risks.

How sustainable should Data Centres be when it comes to usage of power?

Energy efficiency is an area of focus for OADC. We have set performance targets that require us to improve our Power Usage Effectiveness (PUE) which is the industry standard for measuring energy efficiency.

In addition, green building design has been incorporated as a requirement of our core data centres. This requires energy and water efficiency to be included in the design of our data centres.

A key metric in building design is the ‘embodied carbon’ of materials – this refers to the greenhouse gas emissions associated with various stages in the life cycle of building materials, including raw material extraction, manufacturing, transportation, construction, and disposal. Current international building certifications, like IFC EDGE and LEED, require us to achieve ambitious targets relating to the embodied carbon in the materials we use for data centre construction.

How can technology help data centres to maximise sustainability process especially with energy efficiency and what lessons can be learned on the energy efficiency of OADC operations?

At OADC operations, we focus on improving our energy efficiency through technology and optimal occupation of our data centres. This includes:

  • Implementing advanced and more efficient cooling systems and managing airflow efficiently
  • Integrating renewable energy sources
  • Investing in energy-efficient hardware
  • Implementing smart energy monitoring and reporting systems to identify improvements and eliminate waste.
  • Using smart technologies like artificial intelligence to forecast workload and optimise resource allocation.

Waste management is always an environmental issue especially in a developing country, how can industrial waste be managed taking Open Access Data Centre as a case study?

At OADC, we apply the waste hierarchy which requires us to reduce and minimise waste as the first option. Where waste generation cannot be avoided or reduced, we recover and reuse waste in a manner that is safe for human health and the environment.

Where waste cannot be recovered or reused, we will treat, destroy, or dispose of it in an environmentally sound manner that includes the appropriate control of emissions and residues resulting from the handling and processing of the waste material. Our policy also requires us to use licensed disposal sites that are being operated to acceptable standards.

We have a Waste Management Plan that emphasizes a “Cradle to Grave” approach. This means we take responsibility for waste from its creation (“cradle”) to its final disposal (“grave”). We ensure waste separation by providing clearly labeled bins for different materials and have partnered with a government-approved waste collection service provider to ensure proper disposal.

Carbon footprints and circularity are issues in the operations of data centres, how do you recycle and manage your waste? is the community involved in your recycling process and in your waste management?

For circularity to be effective and sustainable, we start considering materials usage from the design phase. We also leverage innovative technologies and sustainable materials to minimise energy consumption, water usage, and waste generation throughout a facility’s lifecycle:

  • In our Lagos data centre, we have partnered with RESWAYE (Recycling Scheme for Women and Youth Empowerment), which collects our plastic waste for recycling purposes.
  • As part of our environmental initiatives, we dispose of electronic waste responsibly. Whenever possible, we ensure that equipment or its components are recycled or reused.
  • Our water treatment plants are environmentally beneficial. The implementation of Reverse Osmosis and Sequence Batch Reactor technology in our plants not only provides clean and safe processed water but also helps save water and reduce waste released into the environment. Its impact is far-reaching, contributing significantly to the protection of public health and the environment.
  • Additionally, we utilize environmentally friendly, clean agent fire suppression systems in our facilities. These agents have extremely low global warming potential and zero ozone depletion potential, containing no carbon dioxide or other harmful gases.

Nigeria is not focussed yet on using renewables when it comes to powering data centres, is OADC looking to do this?

Yes, certainly. OADC has recently completed a feasibility study regarding using renewable energy in our data centres. We have already launched a pilot project using solar power at one of our South African data centres, and we plan to roll out further solar installations wherever we operate in Nigeria and the rest of Africa.

We are also investigating other forms of renewable energy for future projects, including wind and wave energy.

 


Kindly share this post
Continue Reading

Telecom

NITDA Brings Digital Technology to the Grassroots

Published

on

Kindly share this post

In its continued effort to transform Nigeria into a globally recognised hub of technology and innovation to drive economic diversification and boost productivity across all sectors, the National Information Technology Development Agency (NITDA) is set to collaborate with relevant organisations in effectively cascading the benefits of digital technology to all the local governments across the country.

This was disclosed by the NITDA Director General, Kashifu Inuwa when he played host to the Senior Special Advisers to President on Community Engagement – South East, Barr Chioma Nweze; South West, Ms Moremi Ojudu and North West, Hon. Abdallah Tanko Yakassai who visited the Agency to discuss possible areas of collaboration on Nigeria’s digital transformation journey.

This gesture is in total alignment with the present administration’s priority areas, particularly in the area of reforming the economy for sustained inclusive growth.

While stating the agency’s vision for Nigeria where inclusive economic growth is fostered through technological innovation, the NITDA DG noted that the vision aligned with the president’s 8 priority areas.

“The President wants to Reform the Economy to Deliver Sustained Economic Growth; Strengthen National Security for Peace and Prosperity; Boost Agriculture to Achieve Food Security; Boost Infrastructure and Transportation as Enablers of Growth; Focus on Education, Health and Social Investment as Enablers of Development; Accelerate Diversification through Digitisation, Industrialisation, Creative Art and Innovation; and Improve Governance for Effective Service Delivery to Citizens,” he said.

He added that the agency recently crafted its Strategic Roadmap and Action Plan (SRAP 2.0) 2024-2027, and its pillars are the tool that will help Mr President in delivering on all the presidential priority areas.
Enumerating the 8 pillars of the SRAP, Inuwa highlighted “Foster Digital Literacy and Cultivate Talents” as one of the most important pillars the document is anchored on where inclusivity is pronounced.

“To ensure we are inclusive, we need to get our citizens to be digitally literate, so we developed the National Digital Literacy Framework with an ambitious target of achieving 95% digital literacy by 2030 but Mr President cited a mid-term target for us to achieve 70% by 2027,” he stated.

He further said that the agency is collaborating with the Ministry of Education in infusing digital literacy into all academic institution’s curricula while at the same time developing standard training with certifications that would be a prerequisite for securing government employment.

“We have already worked with the Head of Service to put it as a requirement for government workers to be digitally literate. But for the market people, artisans and so on, what they need is the literacy to use digital devices to access internet banking, government digital services and others.

“We have therefore been exploiting many channels to deliver them through TV programmes, social media, radio, roadshows and so on,” he averred.

The NITDA Boss stated that, the 3 Million Tech Talent programme was another initiative of the Ministry of Communications, Innovation and Digital Economy in collaboration with the agency to identify skill gaps in the country and build youth’s capacity on skills in high demand locally and internationally.

“We have started the training and so far we have trained over 30,000 and completed the first phase which is a pilot. We are now executing the second phase of the training,” he said.

While giving deep insight into the other seven strategic pillars of Building a Robust Technology Research Ecosystem; Strengthening Policy Implementation and Legal Framework; Promoting Inclusive Access to Digital Infrastructure and Services; Strengthening Cybersecurity and Enhance Digital Trust; Nurturing an Innovative and Entrepreneurial Ecosystem; Forging Strategic Partnerships and collaborations and lastly, Cultivating a Vibrant Organisational Culture and an Agile Workforce in NITDA, Inuwa shared the various infrastructures, innovative solutions, sponsorships and training programmes the government has been offering nationwide.

In his remark, Hon. Yakassai appreciated the DG NITDA for his wonderful presentation by sharing insights into the various activities of the agency to ensure a digitally empowered nation by building the digital capacities of Nigerians.

He however expressed his team’s willingness to collaborate with the agency in the areas of propagating the agency’s activities to the grassroots throughout the 774 local governments in the country.

“Mr President is a grassroots person that is why he created this office so that we make sure whatever the government is doing is taken down to the grassroots level and we need to show the people the importance of your programmes and how they can key into it”, he stated.


Kindly share this post
Continue Reading

Trending