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The Rise Fund to Invest $200m in Airtel Africa’s Mobile Money Business

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Airtel Africa has announced the signing of an agreement under which The Rise Fund, the global impact investing platform of leading alternative investment firm TPG, will invest $200 million in Airtel Mobile Commerce BV, a wholly owned subsidiary of Airtel Africa plc.

The Rise Fund to Invest $200m in Airtel Africa’s Mobile Money Business

AMC BV is currently the holding company for several of Airtel Africa’s mobile money operations; and is now intended to own and operate the mobile money businesses across all of Airtel Africa’s fourteen operating countries.

The Transaction according to a statement from Telecom giant, values Airtel Africa’s mobile money business at $2.65 billion on a cash and debt free basis.

The Rise Fund will hold a minority stake in AMC BV upon completion of the Transaction, with Airtel Africa continuing to hold the remaining majority stake.

The Transaction is subject to customary closing conditions including necessary regulatory filings and approvals, as necessary, and the inclusion of specified mobile money business assets and contracts into AMC BV.

The Transaction is the latest step in the Group’s pursuit of strategic asset monetization and investment opportunities, and it is the aim of Airtel Africa to explore the potential listing of the mobile money business within four years.

The Group is in discussions with other potential investors in relation to possible further minority investments into Airtel Money, up to a total of 25% of the issued share capital of AMC BV.

There can be no certainty that a transaction will be concluded or as to the final terms of any transactions.

The proceeds from the Transaction will be used to reduce Group debt and invest in network and sales infrastructure in the respective operating countries.

Airtel Africa mobile money services Operating under the Airtel Money brand, Airtel Africa’s mobile money services is a leading digital mobile financial services platform catering to a large addressable market in Africa (characterised by limited access to formal financial institutions with limited banking infrastructure) and includes mobile wallet deposit and withdrawals, merchant and commercial payments, benefits transfers, loans and savings, virtual credit card and international money transfers.

Mobile money services, the statement said, “are available across the Group’s 14 countries of operation, however in Nigeria the Group offers Airtel Money services through a partnership with a local bank and has applied for its own mobile banking licence. It is the intention that all mobile money operations will be owned and operated by AMC BV.

“In our most recent reported results for Q3, the mobile money service segment (corresponding to all the businesses that are intended to be transferred to AMC BV) delivered a strong operational performance:

  • Generated revenue of $110 million ($440 million annualised), and underlying EBITDA of $54 million ($216 million annualised) at a margin of 48.7%.
  • Year on year revenue growth for the quarter was 41.1% in constant currency, largely driven by 29% growth in the customer base to 21.5 million, and 9.7% ARPU growth Growth in transaction value was 53.0% to $12.8 billion ($51 billion annualised).

“Our mobile money business benefits from strong network presence with our core telecom business through the extensive distribution platform of kiosks and mini shops as well as dedicated Airtel Money branches supplementing our extensive agent network, to facilitate customers’ assured wallet and cash.

“We have a clear strategy to continue to drive sustainable long-term growth in Airtel Money with a focus on assured float availability, distribution expansion and increased usage cases for our customers.

“In this year alone we have added partnerships with Mastercard, Samsung, Asante, Standard Chartered Bank, MoneyGram, Mukuru and WorldRemit to expand both the range and depth of the Airtel Money offerings and to further drive customer growth and penetration.

“The profits before tax in the full year ending 31 March 2020 and the value of gross assets as of that date, attributable to the mobile money businesses were $143.4 million and $463.2 million, respectively.”

Key elements of the Transaction include:

  • Agreement values Airtel Africa’s mobile money business at $2.65 billion on a cash and debt free basis.
  • AMC BV, a wholly owned subsidiary of Airtel Africa, is currently the holding company for several of Airtel Africa’s mobile money operations; and is now intended to own and operate the mobile money businesses across all of Airtel Africa’s fourteen operating countries once the inclusion of the remaining mobile money operations under AMC BV is completed.
  • A newly incorporated investment vehicle of The Rise Fund will invest $200 million through a secondary purchase of shares in AMC BV from Airtel Africa. The transaction will close in two stages. $150 million will be invested at first close, once the transfer of sufficient mobile money operations and contracts into AMC BV has been completed, with $50 million to be invested at second close upon further transfers.
  • Airtel Africa aims to explore the potential listing of the mobile money business within four years. Under the terms of the Transaction, and in very limited circumstances (in the event that there is no Initial Public Offering of shares in AMC BV within four years of first close, or in the event of changes of control without TPG’s prior approval), TPG would have the option, so as to provide liquidity to them, to sell its shares in AMC BV to Airtel Africa or its affiliates at fair market value (determined by a mutually agreed merchant bank using an agreed internationally accepted valuation methodology). The option is subject to a minimum price equal to the consideration paid by The Rise Fund for its investment (less the value of all distributions and any proceeds of sale of its shares, and with no time value of money or minimum return built in) and a maximum number of shares in AMC BV such that the consideration does not exceed $400 million.

The Transaction is expected to reach first close over the next three to four months.

The Rise Fund will be entitled to appoint a director to the board of AMC BV and to certain customary information and minority protection rights.

Raghunath Mandava, CEO of Airtel Africa, commented: “In line with our vision of enhancing financial inclusion, Airtel Africa offers a unique digital mobile financial services platform under the Airtel Money brand. In most of our markets there is limited access to traditional financial institutions, and little banking infrastructure, with less than half of the population having a bank account across sub-Saharan Africa. Our markets therefore afford substantial market potential for mobile money services to meet the needs of the tens of millions of customers in Africa who have little or no access to banking and financial services, and this demand is driving growth.

“With today’s announcement we are pleased to welcome The Rise Fund as an investor in our mobile money business and as a partner to help us realise the full potential from the substantial opportunity to bank the unbanked across Africa.”

Yemi Lalude, Partner at TPG who leads Africa investing for The Rise Fund, added: “Financial inclusion is a global issue that is most acute in Africa. Through Airtel Money, Airtel Africa has built a unique platform that is closing the gap between traditional financial institutions and the millions of unbanked Africans across the 14 countries where Airtel Africa operates. We look forward to working with Airtel Africa to enhance their mobile money services, broaden its use cases, and grow into new markets. With this investment in Airtel Africa’s mobile money operations, we are excited to expand The Rise Fund’s global fintech portfolio and continue to deepen our focus on improving financial inclusion in Africa and around the world.”

 


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FG Approves GIS-enabled Digital Postcode to Tackle Logistics Gaps, Boost E-commerce

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Federal Executive Council has approved the rollout of a nationwide alphanumeric digital postcode system, a move believe will modernise the country’s addressing framework and support growth in logistics, e-commerce and emergency services.

The approval, granted under president Bola Ahmed Tinubu, paves the way for the introduction of a Geographic Information System (GIS)-enabled postcode platform designed to provide more accurate and standardised location data across Africa’s most populous nation.

Bosun Tijani, the federal minister of Communications and Digital Economy of Nigeria, who disclosed this via X, said the reform, developed in collaboration with Nigerian Postal Service (NIPOST), would replace inconsistent and often manually described addresses with a structured alphanumeric format tied to geospatial coordinates.

Nigeria’s current addressing system has long posed challenges for postal deliveries, emergency response teams and e-commerce operators, particularly in densely populated urban areas and rapidly expanding peri-urban communities where street naming and house numbering remain irregular.

The new system is expected to improve the precision of mail and parcel sorting, reduce failed deliveries and shorten turnaround times for logistics firms serving a fast-growing online retail market.

Tijani affirmed that the digital postcode framework would extend beyond postal operations, describing it as a foundational layer for national planning and public service delivery. By embedding geographic intelligence into address identification, authorities expect better data integration across agencies responsible for health, security, taxation and urban development.

The reform aligns with Nigeria’s broader digital economy strategy, which aims to build core infrastructure to support fintech, e-commerce and government digitisation efforts.

Industry executives have repeatedly cited weak address verification systems as a bottleneck for expanding nationwide logistics coverage, particularly outside major commercial hubs such as Lagos and Abuja.

Under the new framework, each location will be assigned a unique alphanumeric code linked to geospatial data, allowing for machine-readable sorting and integration into mapping systems. Authorities say this will enable faster emergency response deployment and more efficient route planning for both public and private sector operators.

The government did not provide a timeline for full nationwide deployment but indicated that implementation would proceed in partnership with NIPOST and other relevant agencies.

Officials described the approval as part of efforts to create an enabling environment for a modern and inclusive digital economy, positioning accurate addressing as critical infrastructure in the same category as broadband connectivity and data centres.

For businesses and consumers alike, the shift could mark a structural change in how goods, services and public resources are delivered across the country.


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GSMA, African Operators, Others to Launch Low-cost 4G Devices

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A co-ordinated effort between the GSM Association (GSMA), six African operators and original equipment manufacturers (OEMs) will pilot $40 (R654) entry-level 4G smartphones in six African nations this year.

This, as 710 million of Africa’s population live close to a 4G broadband signal, but have never gone online, with a further 68% not owning a device.

On the continent, entry-level smartphones cost 26% of the average person’s income. For the poorest 40%, the cost jumps to 64% of their income, and for the next 20%, the cost reaches 87%, data from the GSMA has shown.

To address the cost-prohibitive hurdles, the industry body has been a strong advocate of bringing down the cost of devices. It believes that affordable 4G smartphones at scale could bring tens of millions of people online, unlocking access to education, healthcare, financial services, e-commerce and artificial intelligence (AI)-powered tools.

Angela Wamola, head of GSMA Africa, said that the pilots will launch in six countries: DRC, Ethiopia, Nigeria, Uganda, Tanzania and Rwanda.

She added that the pilots build on the minimum specifications for low-cost 4G devices unveiled at MWC Kigali in 2025 and represent a step forward in turning industry alignment into tangible, on-the-ground impact.

The specifications focus on screen size, battery life and storage for a meaningful device that creates utility, particularly in the age of AI, Wamola added.

“Affordability and access of the device is critical for us to resolve. At the same time, getting a device is also about a willingness to purchase, which is about utility. Creating utility relevant to people’s lives, be it in manufacturing, agriculture, information, health and education, etc. It’s about bringing that content and government services online.

“The cherry on top is about local languages. People want to consume relevant content, but it must be in their local language.”

“As the devices land in the hands of the people, the languages will be readily available. Our small, medium-sized entrepreneurs, developers, innovators can begin to create content and products for our population. This is the magic that needs to happen to close the usage gap in the shortest time possible.”

The announcement, made in Barcelona, moves a step further from MWC Kigali by solidifying the vendors and operators that responded to the minimum specifications for the $40 device call, according to Wamola.

The marketplace now consists of private sector operators, as well as original equipment manufacturers that are engaging the six countries where the pilots will take place, she stated.

“At the same time, the GSMA is working with the governments of those nations to understand what fiscal policy incentives can be placed for these $40 entry-level devices, so that they land at the hands of the customer at the same price point.”

Wamola also indicated the coalition is taking a page out of the South African government’s book. It removed the 9% ad valorem tax, commonly referred to as luxury tax, on smartphones within the below-R2 500 price range.

Ad valorem duties are taxes levied on commodities as a certain percentage of their value. For smartphones, the duties are charged at a flat rate of 9%, classifying them as luxury goods.

In May, National Treasury confirmed the luxury tax on entry-level smartphones had been removed.

The GSMA saw how the market responded to adopting those devices when the government of South Africa removed the 9% luxury tax, she stated. “For us, it’s about replicating those lessons across Africa, so that governments can also adopt those.”

Vivek Badrinath, director-general of the GSMA, added: “Affordable smartphones are the gateway to digital and financial inclusion, economic opportunity and innovation; 3.1 billion people have mobile coverage but are not connected to the mobile internet.

“Together with the G6 group of leading African operators, we are sending a clear demand signal to bring low-cost 4G devices to market. In a global context of rising memory costs, governments have an important role in bridging the usage gap. Removing taxes and import duties on entry-level 4G smartphones will be critical to achieving scale.”


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TD Africa, Cisco and Arravo Host C-Level Event on Secure Networking

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The future of secure and intelligent networking took centre stage over the weekend, as leading technology distributor, TD Africa, in collaboration with Cisco and Arravo Technology, hosted an exclusive C-level customer engagement focused on strengthening enterprise security and building resilient network infrastructures.

TD Africa, Cisco and Arravo Host C-Level Event on Secure Networking

TD Africa

The event brought together senior decision-makers from various organisations to explore how businesses can drive resilience and digital transformation through Cisco’s Enterprise Networking, Meraki, and Security solutions.

The session provided practical insights tailored to the evolving needs of today’s digital enterprises, with discussions centred on enabling smarter, scalable network environments while strengthening cybersecurity frameworks.

Speaking at the event, Abiodun Idowu, Head of Enterprise Business at TD Africa, highlighted the growing need for organisations to adopt integrated networking and security strategies in an increasingly complex digital landscape.

“As businesses accelerate their digital transformation journeys, the need for secure, intelligent, and scalable networking solutions has never been greater.

“Through our collaboration with Cisco and Arravo, we are empowering organisations with the tools and insights required to build resilient infrastructures that support innovation while safeguarding critical operations,” he said.

The session also featured an in-depth technical presentation by Theodore Chukwudi, Cisco Solutions Architect, who led discussions on Cisco Meraki’s Cloud-Managed Networking and its role in simplifying network management while enhancing visibility and security.

“Cisco Meraki enables organisations to deploy and manage networks with greater agility and confidence. By leveraging cloud-managed solutions, businesses can enhance operational efficiency, improve security posture, and respond more effectively to emerging threats,” Chukwudi noted.

Offering further insight, Ayantola Olaayan, Director, Enterprise Business at Arravo, emphasised the importance of collaboration in helping organisations navigate modern networking demands. “Strategic partnerships like this enable us to deliver solutions that are both innovative and practical.

“By combining Arravo’s enterprise expertise with Cisco’s technology and TD Africa’s distribution strength, we are helping businesses simplify complexity and build secure, future-ready networks that support long-term growth,” he noted.

Participants gained valuable perspectives on how Cisco’s enterprise networking and security technologies can help mitigate risks, protect digital assets, and support business continuity in an increasingly connected environment.

TD Africa’s collaboration with Cisco and Arravo on this engagement reinforces its commitment to equipping organisations with the knowledge and solutions needed to navigate modern networking challenges and unlock new opportunities for growth.

 


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