The Africa Broadband Forum 2024 was held in Cape Town last week under the theme “F5.5G: Accelerating All-Optical Connectivity in Africa.” The forum focused on advancing fibre broadband development across Africa by fostering discussions on policy frameworks, F5.5G, technological innovation, and industry best practices.

More than 150 experts and industry leaders from international organisations, government agencies, and telecommunications operators gathered to explore strategies for expanding fibre infrastructure and enhancing connectivity on the continent.

Kim Jin, vice president of Huawei’s optical business product line, delivered an opening speech, emphasising how Huawei will work with fibre industry players to build an intelligent, all-optical access network and seize opportunities for coverage, bandwidth, and experience monetisation to achieve business success and accelerate the development of Africa’s digital economy. In a keynote titled “Enabling the next-generation global broadband industry,” World Broadband Association (WBBA) secretary-general Martin Creaner discussed global trends in broadband connectivity, noting advancements in speed, intelligence, and accessibility.

Key industry leaders shared insights and successful strategies from across the African broadband sector. The head of Eswatini’s Post and Telecommunication Company (EPTC) shared how the EPTC, originally a copper-based carrier, has leveraged national broadband goals, optimised resources, adopted cutting-edge technologies, and embraced generational advancements to transform their network.

Representing a successful FMC (fixed-mobile convergence) strategy within African mobile operators, Safaricom’s head of home broadband outlined recent innovations in the company’s FMC strategy and home broadband offerings.

MTN Nigeria’s broadband GM also summarised four major experiences: strategy-driven, precise investment, quality first and ecological cooperation. The secretary of administration in Kenya’s state department for housing and urban development highlighted the important progress made in updating building codes of all new buildings with fibre to accelerate digital superhighway implementation.

White paper

The Africa Broadband Forum 2024 reached its peak with the release of the 2024 Broadband Africa White Paper, jointly presented by the secretary-general of the African Telecommunications Union and leading consulting firm Africa Analysis. This white paper outlines the vision and road map for fibre broadband development across Africa’s “initial,” “developing,” and “leading” markets through to 2030, drawing on both global and African best practices. The white paper envisions Africa’s broadband penetration surpassing 30% by 2030, with fibre connections comprising over half of broadband users. It further details strategic policies and business pathways essential for achieving widespread broadband access across the continent.

The Optical Industry Development Pioneer Award was presented to organisations and individuals who have made longstanding contributions to advancing Africa’s fibre industry. Leaders from prominent international bodies, including the WBBA, the ATU, and the Digital Council Africa, participated in the award ceremony, celebrating the dedication and achievements of these industry pioneers.

Now in its sixth year, Broadband Africa Forum has solidified its role as a key platform for industry exchange across the region. By bringing together expertise from across Africa, the forum supports countries in refining broadband policies, promoting technological innovation, and sharing best practices. Its ongoing impact is evident in the forum’s contributions to Africa’s broadband growth and digital transformation efforts.

About Huawei
Huawei is a leading global provider of ICT infrastructure and smart devices. With integrated solutions across four key domains – telecoms networks, IT, smart devices, and cloud services – we are committed to bringing digital to every person, home, and organisation for a fully connected, intelligent world. For more information, please visit huawei.com or huawei.com/za.

 

 

 

The transaction is expected to close in Lesaka’s third quarter of fiscal 2025.

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Fintech group Lesaka Technologies has signed a definitive agreement to acquire 100% of the issued and outstanding ordinary shares of Recharger for R507 million.

Formerly known as Net1 UPS, Lesaka is listed on the Johannesburg Stock Exchange as well as the Nasdaq.

Recharger is a South African prepaid electricity submetering and payments business with a base of over 460 000 registered prepaid electricity meters.

It enables landlords to collect payment for utility usage from tenants in advance, eliminating the need to manage billing and collections.

This model further provides tenants with the ability to manage their utility usage and payments directly, providing them with greater control over cost.

The Recharger deal sees Lesaka continue with its acquisitive trail after it recently bought payments services provider Adumo in a R1.59 billion ($85.9 million) deal.

Commenting on the Recharger acquisition, Naeem Kola, COO of Lesaka, says: “This is an exciting addition to our fintech platform, adding scale to our enterprise pillar and bringing new revenue opportunities to Lesaka.

“The Recharger acquisition will facilitate us playing a larger role in the prepaid electricity vending and payments value chain and fits well with our existing technologies and services in the enterprise pillar.”

The fintech firm notes the purchase consideration of R507 million ($28 million translated at the average exchange rate of $1: R18.06 as of 18 November 2024) will be paid over two tranches, with the first tranche settled at closing and the second tranche a year later.

It explains the purchase consideration will be settled through a combination of R332 million ($18 million) in cash and R175 million ($10 million) in shares of Lesaka common stock.

The share price applied to determine the number of shares of Lesaka’s common stock to be issued for the equity consideration will be based on the volume-weighted average price of Lesaka shares for the three-month period prior to the disbursal of each tranche.

Lesaka will also make a R43 million ($2 million) contribution to Recharger at closing, which will be used exclusively to repay a loan due by Recharger to the seller.

The company expects the transaction to be concluded at an EV/EBITDA multiple of approximately six times.

Lesaka believes the acquisition will act as an entry point into the South African private utilities space while augmenting its enterprise pillar’s alternative payment offering.

The transaction is expected to close in Lesaka’s third quarter of fiscal 2025 and is subject to regulatory approvals and satisfaction of customary closing conditions.

French broadcaster Groupe Canal+ has highlighted its intention to become a global content platform, seeing Asia and Africa as high-growth markets during its Capital Markets Day on Monday, ahead of its prospective listing on the London Stock Exchange.

“The focus is definitely towards English-speaking [countries]. And of course, London is a much more adequate location to list than any other location in Europe,” CEO Maxime Saada said.

Canal+ has had a strong presence in French-speaking Africa for decades and has been targeting an expansion in English-speaking Africa as it nears the acquisition of South Africa’s MultiChoice.

The group behind the Paddington films is seeking to expand in Asia through its stake in Hong Kong-based Viu and consolidate in Europe with a stake in Swedish platform Viaplay.

Saada said MultiChoice will be instrumental in Canal+’s aim of increasing its customer base beyond its 50 million target.

Launched as a pay-TV channel in 1984 in France, Canal+ has cemented its position as one of the world’s leading broadcasters of live sports events while also distributing streaming services and producing films via its StudioCanal unit.

The firm, which is expected to spin off from parent company Vivendi in December, declined to provide estimates on valuation.

In October, Yannick Bolloré, chairman of Vivendi and Canal+’s supervisory board, said Canal+ was worth around €6.8 billion. If the valuation is confirmed, Canal+’s float in London would be the largest listing in Britain since 2022.

Break-up

However, Vivendi’s split project must be approved by the shareholders before Canal+’s demerger can go through. Shareholders will vote on the plan at an extraordinary general meeting on 9 December.

Minority stakeholders CIAM and Phitrust have urged other shareholders to vote against the breakup, saying it would only increase control of the Bolloré family. Bolloré will hold a 31% stake in Canal+ after the spin-off.

“When it comes to the chairman of the board, myself, I cannot say I’m independent…” Yannick Bolloré said during the Canal+ event. “This is why we have decided to appoint a fully independent lead independent director… All the shareholders will have the same rights, whether it is the Bolloré Group or any other shareholders, he said.  — Gianluca Lo Nostro, Leo Marchandon and Mara Vilcu, (c) 2024 Reuters

Customers today expect personalised, relevant experiences that speak directly to their needs and interests. At a recent Altron CMO Round Table, hosted in partnership with TechCentral, senior marketing executives gathered to discuss how data, analytics and AI are shaping the future of precision marketing.

The round table’s theme, From Data to Decisions: Harnessing AI for Smarter Marketing, fostered an insightful conversation around the opportunities, challenges and strategies to optimise revenue generation in a world where data and AI are key drivers of success, with participants sharing valuable insights into their current practices, challenges and aspirations for the future of data-driven customer engagement.

Precision marketing and AI: current realities

The round table opened with participants sharing their current approaches to precision marketing. Some marketing teams have successfully implemented data-driven strategies, while others are still in the early stages. Key challenges that emerged include:

• Data integration and stakeholder buy-in: One of the most cited hurdles was the difficulty in integrating data from multiple sources, such as CRM systems, social media and customer support platforms. Beyond technical integration, participants emphasised the importance of involving a broad range of stakeholders from the outset. Starting with small-scale projects or proofs-of-concept (POCs) was seen as an effective way to demonstrate the value of data-driven marketing, building relationships across departments, and securing alignment before scaling initiatives. By clearly communicating the expected outcomes of data insights in early POCs, teams can foster a collaborative culture and ease adoption among stakeholders.
• Data accessibility and storytelling: Another common theme was the need for data to be consumable and actionable. Participants noted that while data teams possess the technical expertise to gather insights, they often lack storytelling capabilities to make these insights meaningful to marketers. Conversely, marketing teams, while skilled in communication, may lack the technical fluency needed to interpret complex data. Bridging this gap is essential, and some organisations are experimenting with embedding data professionals within marketing teams to foster a culture of collaboration and cross-functional learning.
• Targeting and audience segmentation: Many teams face challenges in identifying the best segments to target. A phased approach, where internal stakeholders serve as the initial test audience for campaigns, emerged as a popular strategy to refine targeting before expanding to external audiences. This approach helps organisations refine their data-driven strategies in a controlled environment.
• Data transparency with media partners: Participants expressed concerns over the lack of transparency in tools provided by media partners like Google and Meta. Although these platforms offer valuable algorithms, they often operate as “black boxes”, making it difficult for marketers to assess their effectiveness fully. Participants are eager for increased visibility into these platforms’ processes and algorithms to better leverage their potential.

Measuring marketing’s impact on business outcomes

Accurately measuring and communicating the impact of marketing on business outcomes remains a priority. Participants discussed strategies for translating campaign success into measurable, meaningful results that resonate with senior leadership. AI and data analytics play an increasingly central role in connecting marketing initiatives with revenue growth and customer lifetime value, but challenges remain in aligning these metrics with business goals.

One organisation demonstrated the benefits of integrating data professionals within their marketing team, including renaming the department to reflect its broader focus on revenue growth. This integration and data-driven approach has helped the organisation reframe their value proposition to gain a competitive edge, allowed them to optimise pricing strategies based on customer segmentation and price sensitivity, and even monetise their data by sharing insights with clients. Other organisations are experimenting with AI-driven customer behaviour prediction models that allow for greater personalisation, which in turn enhances customer loyalty and drives measurable outcomes.

Participants also recognised the potential to monetise data beyond their own ecosystems, creating value for both organisations and their customers.

Addressing talent and skills gaps

As marketing evolves to rely heavily on data and AI, the demand for data-savvy talent has become increasingly urgent. Participants highlighted the difficulty in recruiting individuals with the right combination of marketing and data skills. Many are addressing this gap through upskilling initiatives and strategic partnerships.

The discussion underscored the importance of a problem-centric approach to AI adoption, focusing on clear use cases rather than technology for its own sake. While generative AI tools like ChatGPT have democratised data analysis, their open-ended capabilities can sometimes overwhelm users, leading to “analysis paralysis”. Organisations are recognising the need for continuous education and effective prompt engineering to maximise the potential of these tools. Participants emphasised the value of structured training programs to build marketers’ confidence in using AI and data analytics. Suggestions included deploying AI champions within departments to provide hands-on support and creating experiential learning opportunities to develop skills through real-world applications.

Balancing short-term execution with long-term strategy

Balancing the immediate demands of campaign execution with a long-term strategic focus remains a significant challenge. Participants emphasised that while AI can streamline short-term processes, it also has the potential to drive broader, strategic objectives, such as customer journey mapping and life-cycle management.

To help marketing teams shift focus from day-to-day execution to long-term strategy, participants suggested embedding predictive analytics into campaign planning and investing in tools that enable automated decision making. These tools can free up valuable time for marketers to concentrate on high-level objectives, such as brand differentiation and customer engagement.

Modernising marketing capabilities for the future

Looking toward the future, the round table underscored the importance of modernising marketing capabilities to remain competitive in an AI-driven world. This involves not only upskilling teams in data and analytics but also rethinking the organisation’s approach to marketing. With data democratisation, there’s a need for organisations to establish clear data governance frameworks, ensure ethical data usage and address intellectual property concerns associated with generative AI. Participants recognised the need for strong policies to guide ethical data sharing, protect customer privacy and maintain brand integrity.

Participants also noted the evolving role of marketing agencies. As organisations gain direct access to data and insights, they increasingly view agencies as execution partners rather than strategic advisors. This shift is prompting many companies to bring strategy in-house while outsourcing campaign execution to agencies, ensuring that data insights align closely with internal brand and business objectives.

The future of AI in marketing: challenges and opportunities

A recurring theme was the potential for AI to transform the marketing function entirely. However, participants acknowledged that rapid AI advancements also introduce complexities, such as data protection and cybersecurity concerns. Additionally, while AI tools hold promise, their effectiveness relies heavily on human input. There is a growing need for marketing teams to feel comfortable using AI tools, and this may require a cultural shift that encourages curiosity, experimentation and ongoing learning.

Participants also discussed the broader marketing ecosystem in South Africa, noting that while AI has the potential to drive collective growth across industries, a cohesive framework for data integration is lacking. There was a call for a national- or industry-level framework to help South African companies harness data more effectively for the benefit of customers and the broader economy.

Ultimately, the future of precision marketing will require a balance of technical acumen, ethical considerations and a deep understanding of the customer journey. By establishing strong data governance, fostering a culture of collaboration and continuous learning, building internal capacity, and being prepared for the evolving dynamics between in-house teams and external partners, organisations can harness the power of AI to drive impactful, data-driven marketing strategies that resonate with today’s increasingly discerning customers.

MTN Group CEO Ralph Mupita has said competition for subscribers is hotting up in South Africa’s prepaid mobile market, with consumers increasingly making use of multiple Sims. 

Speaking at a media briefing on Monday, Mupita said South African mobile users are opting for devices with dual-Sim support and then shopping around for the best deals from the various networks so as to save money. 

“We are seeing South Africa become a multi-Sim market,” Mupita said in the media call to discuss MTN’s third quarter trading update, which was published last week. 

“When I joined MTN in 2017, South Africa was not a big multi-Sim market and customers were actually loyal to the brand. There has been in the last quarter or so quite a shift towards value-seeking [behaviour].” 

According to Mupita, dynamism in the prepaid market, as apposed to the more stable and less competitive post-paid segment, means the potential for South Africa’s mobile operators to unlock growth in the next four quarters depends on how well they position their prepaid offerings. 

He said value-seeking behaviour has for a long time been a defining characteristic of some of MTN Group’s African markets, including Nigeria. The shift in South Africa is driven by a combination of macroeconomic pressures that have placed strain on consumers, along with the increasing availability of dual-Sim devices.

eSim ‘too nascent’

Embedded Sim or eSim capability takes things to the next level, allowing subscribers to add, in some cases, up to 10 or more different Sims on a single device. When asked how the technology contributes to value-seeking in the South African market, Mupita said eSim technology is “too nascent” to play any significant role because the number of handsets supporting it make up a small portion of the market. 

“Now the battle [among operators] is to show good value and a good network experience because there is a significant portion of that market becoming more sensitive to value,” said Mupita. 

Read: South African networks need more spectrum for 5.5G

To compete on network experience in the midst of intense load shedding, MTN South Africa in its previous financial year deployed around R4.5-billion in capex towards network resilience. Mupita said investments in batteries and other backup power mechanisms helped bring uptime across MTN’s 13 000 base stations to 99% or more. With load shedding having ended, the investments originally diverted away from improving network capacity will now go back towards 4G and 5G infrastructure, he said.

Because it is cheaper to run and uses spectrum more efficiently than previous technology standards, MTN is making efforts to upgrade as much of its network to 5G as possible. But there are challenges hindering these initiatives, especially the cost of 5G handsets. 

MTN aims to spend R9.7-billion in capex in its current financial year (to end-December 2024), of which R1.5-billion will go towards power resilience initiatives. Mupita sees this number continuing to decline, provided load shedding doesn’t return. “The power situation is much better, but we can never say it is fully behind us,” he said.  — (c) 2024 NewsCentral Media

 

 

 

Andrea Carr, Head of Research and Development at e4. (Image: e4)

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In a competitive technology industry, companies are looking beyond traditional sales and marketing for growth. Expanding into new industries can offer technology providers new revenue streams as well as opportunities to leverage their core strengths across diverse markets. This approach, combined with a robust R&D function, means companies can stay agile, develop tailored solutions and tap into the ‘art of the possible’ for sustainable expansion.

For established technology specialist companies, the path to growth can be paved by applying existing solutions to industries that share similar needs but face unique challenges. Studies show that companies broadening their market reach with their existing offerings achieve growth rates 20%-30% higher than those who stay within a single vertical.

For e4, expanding into new industries has created meaningful avenues for growth by innovating around their proven capabilities, such as process automation, data management and compliance. “Our approach has been to leverage what we know works and adapt it to meet the unique needs of new markets,” explains Andrea Carr, Head of Research and Development at e4. “By refining our capabilities to fit various industries, we not only deliver immediate value to clients but also open doors to continuous innovation within those sectors.” This cross-industry strategy has positioned e4 as a versatile digital partner, capable of delivering tailored, scalable solutions that address the specific needs of each client.

Research and development (R&D) is a critical piece of the sustainable growth puzzle for tech companies looking to explore new markets. By prioritising an agile R&D structure, companies can quickly adapt and build solutions for different sectors. According to Grant Thornton, companies with nimble R&D capabilities are more adept at responding to specific industry needs, which is a critical advantage for competitive positioning and customer retention in the digital ecosystem​.

“At e4, the R&D team’s agile approach allows us to rapidly develop proof of concept (POC) solutions, allowing clients to test new processes in parallel with their existing systems,” says Carr. “This approach not only reduces risk but also provides data-backed proof of value, helping clients feel more comfortable with potential transitions.”

One of the most effective ways a tech company can achieve growth is through the strategic stacking and integration of its core capabilities. Many leading firms have found success by combining critical functions into offerings tailored for specific industry needs. This integrated approach has the advantage of driving growth while also making it possible for companies to build long-term relationships in new sectors. BCG Research suggests that technology firms deploying integrated, client-centred solutions see higher retention rates and customer satisfaction, as they demonstrate a comprehensive understanding of sector-specific needs.

Carr says e4’s own commitment to data-driven decision-making supports its ability to expand into diverse business ecosystems where processes play a crucial role. By leveraging the insights gained through pilot runs, the R&D team can refine solutions, providing practical outcomes that address specific challenges like manual workflows, data inefficiencies and compliance needs. Adds Carr: “Our approach focuses on actionable data and process optimisation, which not only validates the value of our solutions but also ensures clients feel confident in adopting new, efficient ways of working. A data-led, tailored approach is instrumental in fostering client buy-in and has enabled e4 to develop scalable, industry-specific solutions that facilitate operational excellence across sectors.”

A strong emphasis on capability-driven solutions and a flexible R&D approach can unlock the art of the possible within the tech space. “When tech companies focus on advancing their offerings while remaining adaptable and maintaining a strong sense of client-centricity, they’re naturally better placed to keep pace with industry demands. R&D is a critical factor in seizing new market opportunities and creating value that extends beyond traditional industry limits,” notes Carr.

 

 

 

Dr Mohamed Madkour, VP of ICT strategy and marketing at Huawei.

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Broadband and digital services will allow Africa to take off in the digital economy.

This is according to Dr Mohamed Madkour, VP of ICT strategy and marketing at Huawei, who spoke last week at the Africa Tech Festival 2024 and AfricaCom, in Cape Town.

Madkour highlighted the urgent need for intelligent connectivity and digital transformation on the continent. “Africa has achieved a lot over the last decade, but we still need to work harder for Africa to leap in the era of 5G and intelligence.”

Two crucial trends will fuel this growth and help build a sustainable digital society, he said: first industrialising ICT business, and then leveraging it in digitalising other industries.

He noted there are two revolutions at play. “One of them is energy and the other is information. They are both feeding into an intelligent world, or industrial revolution, which is foundational.”

To be a viable player in this revolution, Africa requires infrastructure, talent and services, with a focus on its environmental impact.

Mobile connectivity in Sub-Saharan Africa requires collaboration, Madkour noted, adding that about half of the devices being used to access the internet in this region are 2G- or 3G-enabled phones.

“We need to get that remarkable device – the smartphone – into the hands of every African person.”

Huawei’s mission is to help develop fixed broadband (fibre) connectivity, he stated.

While connectivity conversations, be it on fibre or wireless, used to focus on speed, now it’s also about security, intelligence, latency, compute power and convenience, he said.

Madkour also addressed the need for sustainability in the ICT sector, noting the environmental impact of communications and computing power must be factored into Africa’s digital strategy.

“About 20% of global carbon emissions can be reduced by better use of ICT.”

Citing World Bank data from 2020 that fewer than half of Africans had reliable power, if any at all, Madkour noted the urgent need to improve electricity supply across the continent.

Huawei is supporting low-carbon transition initiatives, particularly in rural and remote areas, he said. Through its solar microgrids, it aims to deliver power to communities without the need for large-scale investments in power distribution networks.

“A village of 150 households can go from no power to having between 30kWh and 60kWh of energy storage in just three to six months. This is crucial for closing the digital divide.”

In closing, Madkour said no single organisation, government, or operator can address these challenges alone. “Real proactive collaboration is key to making a meaningful difference.”