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Ventures Platform Advocates Increased Funding for Africa Amid Global Slump

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Ventures Platform Team at APS 2024

By Adedapo Adesanya

Ventures Platform, an early-stage venture capital fund investing in innovative startups across Africa, has called for increased investment in Africa amidst global economic shifts.

This was the crux of the second edition of its Africa Prosperity Summit held on Friday, November 15 2024, in Lagos, Nigeria.

The invitation-only event themed Funding the Next Billion: Africa’s VC Investment Landscape in a Post-ZIRP Era brought together over 150 Pan-African and global investors, venture fund managers, family offices, development finance institutions (DFIs), fund of funds, Limited Partners and key ecosystem players actively investing in Africa.

The event served as a call to action for global and local investors, entrepreneurs, policymakers, and thought leaders to reassess opportunities in emerging markets amidst rising global interest rates and economic shifts. Africa, with its dynamic entrepreneurial spirit and growing youth demographic, presents significant investment potential.

However, realising this potential requires a deep understanding of local contexts and a commitment to fund innovations, which the 2024 Africa Prosperity Summit sought to address.

Speaking at the summit, Mr Kola Aina, Founding Partner, Ventures Platform emphasized that Africa’s massive population boom is happening at the same time global venture capital is on a decline.

He references that since the post-COVID peak of venture capital investments in 2021 -influenced by the Zero Interest Rate Policy (ZIRP) era – global venture capital flows have declined by 70 per cent.

“The situation in Africa is no better – Africa has experienced a 67 per cent decline in venture capital funding, despite its requirement of 10x more capital to address infrastructure gaps and non-consumption and be at par with Asia in terms of VC investments.

“Africans are simply unable to consume the goods and services that they need, talk less of want. If we do nothing about this today, by 2050, the 1 billion Africans that will be born – will end up being chronic non-consumers,” he argued.

“At Ventures Platform, we believe that by investing in the right kinds of entrepreneurship and innovation, we can produce two powerful outcomes – high-quality jobs that will drive up incomes across Africa, and scaling up affordability and accessibility to products/services for millions of people across Africa. The combination of these two powerful forces is an effective way of driving up consumption across Africa.”

Also speaking at the event, Mr Efosa Ojomo, the Director of Global Prosperity at the Clayton Christensen Institute highlighted Africa’s potential as the modern investment frontier, drawing parallels to historical transformations in global economies.

He emphasised how venture capital can accelerate market creation on the continent, stating, “Venture capital is designed to de-risk an economy – or at least, a sector. Unlike other financial vehicles like private equity or bonds, VC takes on the highest risk.

“In Africa, where raising funds for critical infrastructure is particularly challenging, venture capital must go beyond funding to actively build entrepreneurial ecosystems in the early stages.”

In the second keynote by Mr Charlie Robertson, Head of Macro-strategy at FIM Partners, provided a comprehensive analysis of global macroeconomics and its impact on investment and industrialization.

Engaging investors, fund of funds, startup founders, and policymakers, he explored the risks, challenges, and opportunities Africa faces in comparison to other regions.

“As Africa charts its path to prosperity, the critical levers of education, electricity, and fertility rates will define its economic trajectory. Countries like Egypt, Ethiopia, and Nigeria are already making strides with central bank policies that have corrected currency misalignments, paving the way for current account improvements and reduced investment costs.

“With fertility rates beginning to decline and the potential for service-led growth through affordable solar power and advanced connectivity, Africa is poised to leapfrog traditional industrialization barriers. This is a pivotal moment for investors to recognize the continent’s unique opportunities and actively shape its future prosperity.”

This year’s edition also witnessed Ventures Platform launching its inaugural ClimateTech White Paper titled “Innovating for a Sustainable Future: Harnessing Venture Capital and Startup Entrepreneurship to Combat Climate Change in Africa”.

The landmark paper which was launched by three key drivers – Urgency, Climate disparity, and Opportunities for VCs and Startups, examines the roles of venture capitalists and startups in climate change mitigation and adaptation. It also provides a comprehensive guide for non-climate VCs and entrepreneurs, including the development of a proprietary framework for a coordinated climate response in the African tech sector.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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Telco Subscribers Threaten to Sue Over 50% Tariff Hike

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telco subscribers Nigeria

By Adedapo Adesanya

An association representing the interest of telecommunication subscribers in Nigeria has rejected the 50 per cent tariff increase announced by the Nigerian Communications Commission (NCC) and has threatened legal action.

On Monday, the NCC approved a 50 per cent tariff increase for telecom operators in the country, the first since 2013.

The 50 per cent call was lower than the 100 per cent recommended by the other stakeholders, including the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON), which has members like MTN and Airtel.

Now in response, the National Association of Telecoms Subscribers (NATCOMS) has faulted the move, saying the 50 per cent was too high and called for another review.

The association’s president, Mr Deolu Ogunbanjo, said on Channels Television’s Lunchtime Politics, monitored by Business Post on Tuesday, that the body would approach the courts if there’s no reversal.

He noted that Nigerians are already bearing the brunt of a cost of living crisis, adding that the 50 per cent hike which was supposed to reprieve from the initial 100 per cent recommendation, was still not acceptable.

“It is not it at all. It is so much for subscribers to bear. Already, we are grappling with a lot of things that are surrounding the business climate here… fuel cost, electricity cost, and all that… you are now looking at telcos asking for 100 per cent and NCC now is granting them 50 per cent It is a no-no,” he said.

“We are definitely not going to accept this,” he declared.

The NCC, announcing the hike on Monday, said the increase was pursuant to its power under Section 108 of the Nigerian Communications Act, 2003 (NCA) to regulate and approve tariff rates and charges by telecommunications operators.

“…Over 100 per cent requested by some network operators was arrived at taking into account ongoing industry reforms that will positively influence sustainability.

“These adjustments will remain within the tariff bands stipulated in the 2013 NCC Cost Study, and requests will be reviewed on a case-by-case basis as is the Commission’s standard practice for tariff reviews. It will be implemented in strict adherence to the recently issued NCC Guidance on Tariff Simplification, 2024,” the announcement statement noted.

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NCC Approves 50% Hike in Call, SMS, Data Tariffs

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NCC

By Adedapo Adesanya

The Nigerian Communications Commission (NCC) on Monday approved a 50 per cent tariff increase on calls, SMS, and internet data for telecoms companies in the company.

This comes after telcos suggested a 100 per cent hike in the tariffs, the first of such changes in over 10 years.

Despite the recommendation, the NCC was concerned about the impact this would have on Nigerians, who are battling a cost of living crisis.

The NCC rationalised the 50 per cent hike, saying it wanted to strike a balance between protecting consumers and ensuring the industry’s sustainability.

“The adjustment, capped at a maximum of 50 per cent of current tariffs, though lower than the over 100 per cent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability,” a statement from the NCC read on Monday night.

Recall that the Minister of Communications, Innovation and Digital Economy, Mr Bosun Tijani, has said the federal government may consider between 30 and 60 per cent hike in tariffs.

“I think it should not be more than anywhere between 30 and 60 per cent,” he said during an interview recently.

On his part, the Chief Executive Officer of MTN Nigeria, Mr Karl Toriola, said telcos are proposing a 100 per cent increase in tariffs to the Nigerian government.

He, however, pointed out that it won’t get such approval but said a substantial change, beneficial to all stakeholders, could be agreed upon.

It is not certain what the reaction of the telcos may be concerning this new development. If they disagree with the approval, it may lead to another round or dialogue or limitation of service offerings.

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Nigerians Hail Acceptance of Naira for AWS Cloud Subscription

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Amazon Web Services

By Modupe Gbadeyanka

The acceptance of the Naira for payments for cloud services in Nigeria by global cloud leader, Amazon Web Services (AWS) has continued to excite its customers in the country.

Before now, Nigerians subscribing to the company’s cloud services were forced to purchase foreign currencies, particularly the United States Dollar (USD).

But to make transactions easier for its teeming clients in the country, AWS announced it was now accepting payments in local currency.

“With payments in their local currencies, customers can avoid foreign exchange costs associated with making foreign currency payments.

“This also removes payment friction for customers in countries where local regulations put limits on the foreign currency amount a customer can access,” the American firm said in a statement.

By lowering the barrier for Nigerian companies to pay for cloud services in their local currency, AWS has given itself an edge, but the growing local alternatives may still present a challenge.

The organisation said it is not just about price anymore—it’s about local relevance and helping businesses navigate the complexities of Nigeria’s economic environment.

The decision of AWS to accept naira payments comes in response to the growing appeal of local cloud providers in Nigeria.

Recall that in January 2023, the firm launched its AWS Local Zones facility in Lagos to reduce latency and improve performance for Nigerian businesses—often an important factor since many Nigerian companies host their services in AWS’s European region due to geographical proximity.

By offering a new payment option alongside this infrastructure, AWS can solidify its foothold in the Nigerian market, especially as local providers continue to present an attractive, economically aligned alternative.

“This is a welcomed development. We have been waiting for this to happen for a long time. I am glad it has finally become a reality. I don’t need to buy forex (foreign exchange) to pay for Amazon cloud services,” a tech enthusiast based in Lagos, Mr Kolade Adewale, told Business Post.

“I want to believe that the competition from Microsoft’s Azure may have forced AWS to include the Naira as a payment option. This is what competition does to the market. You can see such in the telecommunications and petroleum sectors with Dangote Refinery,” another tech enthusiast, Mr Goke Fashina, said.

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