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MTN’s Record Fine, Others to Shape 2016
Gareth Mellon, ICT Programme Manager at Frost & Sullivan Africa provides a run-down of the top six technology trends to watch in Africa as we edge closer to 2016.
Accordi to Mellon, while MTN Nigeria’s massive fine has naturally attracted the most attention, regulators in Kenya and Uganda have also imposed recent penalties, and the fall-out from each of these points to the potential impact that both the government and regulators have on the telecommunications market.
1. Public Sector Actors Become more Involved
As governments increasingly see connectivity as a critical means to encourage economic growth, we can expect them to become more involved in the market, helping to stimulate telecommunications investment in some cases, but also threatening to add increased uncertainty in volatile markets.
While MTN Nigeria’s massive fine has naturally attracted the most attention, regulators in Kenya and Uganda have also imposed recent penalties, and the fall-out from each of these points to the potential impact that both the government and regulators have on the telecommunications market.
As debates concerning the allocation of spectrum, the implementation of national broadband plans and the provision of eServices continue unabated (not forgetting, of course, the constant delays in digital migration), expect the role of public sector bodies to become even more influential.
2. Fixed-Line Makes a Comeback
While technically not a ‘comeback’ in many African countries, where fixed-line hardly got out of the starting blocks, demands for fibre connectivity have soared.
Across the continent, submarine cables have boosted international connectivity and, while terrestrial coverage remains a challenge in most countries, investments in fibre backhaul and access layers have picked up.
As this proliferation continues, high capacity last-mile access is becoming more viable and FTTX services have become established in key markets such as Kenya, Nigeria, and South Africa.
While individual services remain relatively expensive for early-adopters, ongoing investment will lead to price reductions, making fixed-line more attractive for both businesses and consumers.
3. Industry Consolidation to Meet Infrastructure Costs
Etisalat’s recent acquisition of a majority stake in Maroc Telecom means that five major multinational operators now account for more than 60 percent of all telecommunications subscribers in Africa.
Consolidation in the telecommunications market is driven by a desire for scale to help overcome margin pressures.
The provision of network infrastructure is enormously costly and all operators have been subjected to the worrying reality of increasing infrastructure costs versus declining average revenue per user (ARPUs). With increased pressure on operators to provide LTE services – which requires further investment in existing infrastructure – Frost & Sullivan expects this drain to continue.
While large-scale mergers typically attract most of the attention, it is also worth noting changing market dynamics as smaller telecommunications players find it increasingly difficult to remain competitive.
South Africa’s Cell C has made headway in claiming some portion of the market from the two dominant players, but its sustainability remains questionable.
Meanwhile, mutterings in Kenya point to Orange’s troubles in achieving profitability in a market dominated by Safaricom.
And, across the continent, even start-ups promoting new technologies (LTE or fibre for example) struggle to break the dominance of the big players reflecting how difficult it remains for late-entry operators to establish any kind of foothold.
4.Content is King in the Battle for access to Customers
The other driver of telecommunications consolidation concerns the battle to retain access to customers. In the customer’s eyes, the question is now: “Who can provide me with the best access to everything I need?”
And, while operators currently occupy an enviable position in this respect, other telecommunications providers – including hardware providers, device manufacturers, and OTTs – are all seeking to offer aggregation services.
The key differentiator will be content –in particular high-demand content – whether it is local or global, live or recorded. DStv remains the undisputed leader in content distribution across Africa, but its dominance is being challenged by the growth of alternative channels such as fibre to the home (FTTH) and 3G or 4G.
Over the past year, the battle lines have been drawn in key markets such as Kenya, Nigeria and South Africa, and the first casualties have already been incurred.
The year 2016 will quickly reveal which services are critical to customer requirements and, ultimately, how profitable they can be.
5. Telcos showcase digitalisation
Typically, telecommunications distinguish between their consumer and enterprise offerings, and the latest fad in the enterprise market is digitalisation; identifying all areas of a business that can be transformed by ICT in order to offer integrated and enhanced products and services.
The starting point will be to show how connectivity can improve profitability in sectors as diverse as oil exploration, agri-processing, and the clothing industry; but expect ICT providers to start positioning themselves as complete, end-to-end partners with the ability to transform their clients into digital pioneers.
Machine learning will be critical to this implementation, but watch out for other buzzing terms similar to wearables, the sharing economy and the blockchain.
6. The Mobile Payments ecosystem Expands
Africa has been the birthplace of mobile payments and one cannot ignore this key feature of the ICT landscape on the continent. In 2016, we can expect growth in three areas.
Firstly, while Kenya is often cited as the forerunner in mobile payment proliferation, this leadership is anticipated to be challenged by countries like Tanzania, Zimbabwe and Zambia, all of which have experienced significant growth in mobile payments.
Secondly, while peer-to-peer transactions currently account for three quarters of all payments, other areas such as merchant payments and international remittances should show healthy adoption, expanding the broader mobile payments ecosystem.
Finally, operators and banks have typically spearheaded mobile money development, but there are a growing number of actors seeking to grab a share of the market. The most prominent amongst these are the major Internet players; namely Google, Facebook, and Apple who, although not necessarily established in Africa, are leveraging their communication platforms to obtain access to customer’s wallets.
Patience Okala, the National Coordinator and Chief Executive Officer of the Nigeria AfCFTA Coordination Office has urged African countries to stop exporting raw materials and instead focus on adding value to its natural resources if it is to fully harness the opportunities offered by the African Continental Free Trade Area.
She stated this on Thursday at the Streamsowers & Köhn 20th Anniversary Business Forum, where she stressed that value addition and beneficiation are essential to Africa’s industrialisation and long-term economic growth.
According to a statement issued on Friday by the Nigeria AfCFTA Coordination Office, she said the AfCFTA goes beyond the elimination of tariffs, serving as a framework for industrialisation, value addition, and job creation across the continent.
“AfCFTA is not only about tariffs; it is also about value addition. Africa has to stop exporting raw materials. We need to add value and ensure that beneficiation is done on the continent,” she said.
Okala also said Africa’s economic transformation would depend on the effective implementation of the AfCFTA rather than on the signing of trade agreements alone.
“We have moved beyond negotiations. The success of AfCFTA will be measured by the extent to which businesses can access new markets, trade seamlessly across borders, and benefit from the opportunities created by the agreement,” she said.
She noted that Nigeria had intensified efforts to implement the agreement under the leadership of the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, including the development of simplified AfCFTA guides in six languages to help businesses understand and take advantage of opportunities under the trade pact.
Okala called for stronger collaboration among governments, regulators, and the private sector to eliminate barriers to trade and investment and build a truly integrated African market.
“As we move from policy to implementation, our collective responsibility is to ensure that the opportunities created by AfCFTA become practical realities for businesses, particularly MSMEs, women-owned enterprises, and young entrepreneurs across the continent,” she said.
Cisco is exploring artificial intelligence (AI)-powered solutions to support smallholder farmers in Nigeria, as part of efforts to expand digital inclusion and technology adoption.
The initiative focuses on improving agricultural productivity through accessible, data-driven tools.
The move aligns with growing collaboration between Nigeria and the United States under the Commercial and Investment Partnership, which prioritises the digital economy, agriculture and infrastructure.
Speaking at the 2026 World Business Chicago, Brian Tippens, chief social impact and inclusion Officer at Cisco, said the company is assessing practical AI applications to help farmers combine local knowledge with data insights.
He said Cisco is exploring tools such as AI-enabled WhatsApp communities, geospatial mapping and weather intelligence to support day-to-day farming decisions.
The approach reflects a shift towards low-cost, mobile-first solutions suited to rural environments.
Tippens added that the Cisco Foundation is investing in early-stage startups developing technologies for local agricultural challenges.
Industry analysts note that AI adoption in emerging markets depends on locally relevant solutions, rather than large-scale enterprise deployments alone.
Beyond agriculture, Cisco plans to expand digital skills development in Nigeria through programmes such as the Cisco Networking Academy’s One Million Learners initiative.
Tippens said the programme also supports partnerships with organisations working with persons with disabilities, including those developing tools for people with visual impairments.
He added that Cisco’s social impact strategy aims to improve access to technology and promote inclusion, including in conflict-affected regions such as Borno State.
Cisco’s initiatives form part of broader efforts to link digital skills, connectivity and AI adoption to economic development in Nigeria.
Federal Government has launched a nationwide Artificial Intelligence (AI) capacity-building programme for teachers in Federal Unity Colleges, with about 11,700 educators set to acquire digital skills aimed at improving classroom instruction and preparing students for a technology-driven future.
The initiative advanced with the signing of the Terms of Reference (ToR) between the Federal Ministry of Education and ICEDT Consult Limited, paving the way for the nationwide implementation of the AI Teacher Capacity Development Programme.
The programme, to be implemented through the ministry’s Education Support Services Department, is part of the Federal Government’s efforts to modernise Nigeria’s education sector, strengthen teacher professionalism and equip students with skills required in the digital economy under President Bola Tinubu’s Renewed Hope Agenda.
Speaking during the signing ceremony in Abuja, the Director of the Education Support Services Department, Gabriel Amudipe, described the initiative as a strategic investment in Nigeria’s teaching workforce and the future of education.
He said the nationwide rollout followed the successful completion of a pilot phase conducted in selected Federal Unity Colleges.
According to him, the implementation model developed by ICEDT Consult Limited will ensure effective coordination and quality delivery of the programme across the country’s six geopolitical zones.
Amudipe urged officials responsible for monitoring the project to ensure strict compliance with the implementation guidelines and maintain the standards achieved during the pilot phase.
“The ministry remains committed to supporting innovative initiatives that strengthen teacher professionalism, improve learning outcomes and promote the responsible integration of emerging technologies into education,” he said.
Earlier, the Deputy Director of the Education Support Services Department, Oladele Fapohunda, described the programme as a strategic intervention designed to deepen digital innovation across Federal Unity Colleges.
He stressed that collaboration among all stakeholders would be essential to achieving the objectives of the initiative nationwide.
Also speaking, the Head of Strategic Partnerships and Learning Scientist at ICEDT Consult Limited, Dr Abdulrahman Orosanya, said the Federal Government approved the national rollout after the successful pilot implementation in six Federal Unity Colleges representing Nigeria’s six geopolitical zones.
According to Orosanya, the pilot demonstrated the potential of Artificial Intelligence to improve lesson planning, classroom delivery, assessment methods and teachers’ productivity.
He said the nationwide implementation would strengthen teachers’ digital competencies, improve instructional delivery and support the government’s vision of building a technology-driven education system capable of producing globally competitive graduates equipped with 21st-century skills.
The ceremony ended with the formal signing of the Terms of Reference by officials of the Federal Ministry of Education and ICEDT Consult Limited, signalling the commencement of preparations for full implementation across all Federal Unity Colleges.
The ministry said the programme would directly train about 11,700 teachers, while thousands of students across the country’s Federal Unity Colleges are expected to benefit through improved classroom instruction, increased digital innovation and the responsible application of Artificial Intelligence in teaching and learning.
It reaffirmed its commitment to working with relevant stakeholders to modernise Nigeria’s education system, improve teacher quality and deliver inclusive, equitable and future-ready education nationwide.
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