African Tech Roundup

The gravy train may well be over at Africa’s largest tech company (by market value)— Naspers.

Naspers CEO, Koos Bekker, told investors late last week that the coming year is going to be a trying one for the company. At this point, Naspers has only one card up its sleeve, and it’s called Tencent Holdings. After all, Naspers’ 33 percent stake in the Chinese technology company currently accounts for almost half its revenue, and its internet and pay-tv businesses are stalling at a time when they desperately need growth to keep competitors like Google, Facebook and Amazon at bay.

Bekker’s cautionary statements led to a 0.3 percent decline in the firm’s share price-- which seems like a tame reaction by the market considering that S&P Global Ratings had already changed its outlook on Naspers' credit rating to BBB-, which is only one step up from junk status. In short, it’s rough in these streets.

Last week saw DEMO Africa hosted in Southern Africa for the first time in its five year history. DEMO Africa 2016 went down in Sandton, Johannesburg, and we're pleased to say that it exceeded our expectations in almost every way.

The conference brought together 27 startups from across Africa, angel investors, venture capitalists, enterprise representatives and public officials all under one roof to engage in dialogue and witness adjudicated pitching sessions.

What was most impressive, though, was the Pan-African crowd and the quality of the engagement that took place. In this episode of the African Tech Round-up, Andile Masuku shares snippets of great conversations he had with power players who are intricately involved with the continent’s tech ecosystem.

Tune in for insights from Investor and Founding President of the African Business Angels Network, Tomi Davies, Microsoft’s Director for Venture Capital & Start-ups, Africa Initiatives (Microsoft 4Afrika), Amrote Abdella, the City of Joburg’s Director of Economic Development Facilitation, Tsholo Mogotsi, Angel Investor, Farouk Jivani, and Managing Partner of the Lions @frica initiative, Stephen Ozoigbo.

Music Credits:

Music by Kevin MacLeod (incompetech.com)

Music licensed under Creative Commons: By Attribution 3.0

Econet Wireless has recently announced that all ±40 million of their subscribers in Africa will benefit from Shine’s ad blocking service— starting with those in Zimbabwe.

This deal represents Shine’s first deployment on the continent, following partnerships they’ve struck with the likes of the Caribbean mobile operator, Digicel, and Three Group in the UK and Italy.

There’s no doubt about it, life is about to get a little tougher for online media platforms that rely on ad revenue to survive, as well as for web marketers that peddle online real estate. However, Econet’s subscribers are likely to relish the prospect of enjoying quicker loading times, and cleaner web pages free from unsolicited advertisements.

In this week’s African Tech Round-up, Andile Masuku chatted with Scott Lyons of the Ford Motor Company. Scott leads Ford’s SYNC AppLink European Business and the Partner Development Initiative within the Ford Connected Vehicle and Services Organisation. Their conversation touched on Ford’s plans to produce a fully autonomous vehicle by 2021, as per the company's announcement to that effect made last week.

Scott shared what he makes of the disruptive influence of tech firms like Google and Uber on the traditional car manufacturing business, and Andile got him to explain the strategic thinking that went into choosing Morocco as the place to sponsor Ford’s latest Mobility Challenge aimed at promoting innovation in the country’s ride sharing scene.

Music Credits:

Music by Kevin MacLeod (incompetech.com)

Music licensed under Creative Commons: By Attribution 3.0

Safaricom and Craft Silicon both took an “L” this past week.

As it turns out, they neglected to trademark the Little Cabs brand name before launching their ride-sharing service some weeks ago. And now, they’ve had to drop the word “Cab” from their brand after the “Little Cab” trademark-holder went to court to defend his right to use that name. From now on, they are to be known as Little.

The whole situation is more than a little embarrassing to say the least, and reminds me of the wisdom MiPhone Founder and CEO, Alpesh Patel shared on the show some months ago, about how important it is to “dot the i’s and cross the t’s” when it comes to securing one’s commercial intellectual property. Nevertheless, I’m sure the folks at Safaricom and Craft Silicon have learned their lesson.

This week’s African Tech Round-up also features a chat Andile Masuku had with Brendan Horan. Brendan is an executive vice president of MiX Telematics— a fleet and mobile asset management solutions business that’s listed on both the Johannesburg and the New York Stock Exchanges, as well as the Managing Director of MiX Telematics’ African business.

Listen in to hear how Brendan’s company goes about applying a Software-as-a-Service (SaaS) delivery model to deliver solutions to customers in more than 120 countries around the world, how the global AI and machine learning trend is impacting their corporate’s strategy, and how Brendan deals with the challenge of growing the firm’s African business in hugely varied markets across the continent.

Music Credits:

Music by Kevin MacLeod (incompetech.com)

Music licensed under Creative Commons: By Attribution 3.0

Babusi Nyoni is a Cape town-based Zimbabwean digital all-rounder. Babusi is the Digital Creative Group Head at South Africa’s #1 ranked through-the-line agency, M&C SAATCHI Abel.

Andile Masuku catches up with Babusi to discuss an AI-enabled campaign he recently masterminded and executed for a global FMCG brand, and to chat about the rise of machine learning and artificial intelligence in general. Tune in to hear him factor in on what the world might look and feel like when those technologies become common-place.

MTN Group’s warning that their interim financial results for the period ending June 30th 2016 would be unpleasant did a lot to absorb the shock when reality struck last Friday— the day the report eventually dropped.

Despite revenue for the interim period improving by ±US$5.7 billion, MTN reported an after tax loss attributable to equity holders of just over US$401 thousand. That translates to a headline loss per share of nearly US$0.20. Compare that with 2015’s headline earnings of just under US$0.48 per share, and it’s sobering to see how humbling this must be Africa’s largest mobile service provider.

As expected, the mobile telco has put forward a long list of explanations for what went wrong. One of the more interesting items on that list is what they are calling “short-term losses” they’ve sustained thanks to their significant investments in Middle East Internet Holdings and of course, the recently rebranded Africa Internet Group— which now goes by Jumia.

We would love to know what’s going through the mind of MTN Group’s President and CEO-in-waiting, Rob Shuter, who will no doubt have his work cut out for him when he takes up the reins from Phuthuma Nhleko come July 2017.

Also in this week’s African Tech Round-up features a chat Andile Masuku shares had with the Cape Town-based Zimbabwean digital all-rounder, Babusi Nyoni. Babusi is the Digital Creative Group Head at South Africa’s #1 ranked through-the-line agency, M&C SAATCHI Abel.

Andile caught up with Babusi to discuss an AI-enabled campaign he recently masterminded and executed for a global FMCG brand, and to chat about the rise of machine learning and artificial intelligence in general. Tune in to hear him factor in on what the world might look and feel like when those technologies become common-place

Music Credits:

Music by Kevin MacLeod (incompetech.com)

Music licensed under Creative Commons: By Attribution 3.0

Who knew that a little quarterly update by a publicly-traded Swedish investment firm could get Nigeria’s e-commerce fraternity all worked up? Not we.

So, as Kinnevik was going about its business last week, the firm released its Second Quarter Report which detailed the performance of its subsidiaries around the world. That simple act of due diligence on Kinnevik’s part (which admittedly is something that happens every quarter without fail, but only garnered media attention in Nigeria this time round) allowed us all to get a sense of just how well Nigeria’s biggest e-commerce platform, Konga, is doing— which in turn fuelled speculation around the health of Nigeria’s e-commerce sector in general.

Perhaps the most shocking revelation contained in the report was that Konga only has 184,000 active customers— which translates to approximately 1.1% of the Nigerian population. In a word, that number is disappointing. It has lead to vigorous debate both on social media and in the blogosphere about why Nigeria’s e-commerce industry appears to be stalling, and what interventions may be required to turn the situation around.

Music Credits:

Music by Kevin MacLeod (incompetech.com)

Music licensed under Creative Commons: By Attribution 3.0

Data costs need to come down significantly if Africa is ever going to realise the dream of making access to the internet available to every single person living on the continent.

As things stand, according to a new research report by Global Market Insights, an estimated 590 million Africans still do not have access to electricity, to say nothing of reliable web access.

However, South Africa’s largest telecoms operator, the government-owned Telkom, has announced some game-changing 4G/LTE data-led mobile packages that may signal the beginning of the end of exorbitantly high data prices in that country.

Aside from throwing down the gauntlet towards its rivals, Telkom seems to be committing to a business model that seeks to sign up the masses and incentivise them to consume ever increasing amounts of data, as opposed to attempting to profiteer in the short to medium term. What’s not to love about that?

Also in this week’s African Tech Round-up, I speak to Frank Schutte, the former Retail Product & Marketing Managing Director of South Africa’s largest life insurer— Liberty, to found a startup called MobiLife, which is “Africa’s first 100% mobile insurance offering” that aims to transform micro-insurance in South Africa.

Listen in to find out what would possess Frank to take on the well-heeled incumbents who currently control South Africa’s highly-competitive multi-billion dollar life insurance industry.

Music Credits:

Music by Kevin MacLeod (incompetech.com)

Music licensed under Creative Commons: By Attribution 3.0

Jaco Van Zyl is the co-founder and MD of the South African startup, PulseIt— a company which is looking to give online voucher firms like Vouchercloud, Groupon and Shazam a run for their money.

In this chat Jaco Van Zyl explain swhy so many VC’s and African tech firms seem quite bullish on the online voucher business, and why he thinks his startup has what it takes to steal market share from more established international players and fend off newer players like ttrumpet who are just as hungry for success as he is.

There’s no doubt that online education is a hot ticket at the moment.

While the folks at Andela are probably still celebrating landing $24 million worth of investment courtesy of the Chan Zuckerberg Initiative and others, the New York-based Codecademy has closed a $30 million Series C investment round led by Naspers, through its Naspers Ventures division.

Codecademy plans to use the funds to extend its global reach, build its mobile presence, and beef up its course content. It does seem that formal education business is well and truly on its way to being disrupted.

In this week’s African Tech Round-up, Andile Masuku catches up with Jaco Van Zyl, the co-founder and MD of the South African startup, PulseIt— a company which is looking to give online voucher firms like Vouchercloud, Groupon and Shazam a run for their money.

Andile asked Jaco to explain why so many VC’s and African tech firms seem quite bullish on the online voucher business, and why he thinks his startup has what it takes to steal market share from more established international players and fend off newer players like ttrumpet who are just as hungry for success as he is.

Music Credits:

Music by Kevin MacLeod (incompetech.com)

Music licensed under Creative Commons: By Attribution 3.0

Last week, the global digital behemoth that is Facebook announced that they’ll be rolling out the OpenCellular system worldwide. OpenCellular is said to be an inexpensive, weather-resistant and fully customisable platform that will be able to serve as a wireless access point for connecting devices using 2G, LTE or even Wi-Fi.

While this move by Facebook is no doubt just a footnote in the company’s playbook for achieving complete digital dominance, one wonders if this could signal the beginning of the end for the likes of Kenya’s BRCK— a home-grown system designed to do exactly what OpenCellular promises to do, perhaps less reliably.

One wonders if there is any chance that a minnow like BRCK can stand up to the fire and might of a beast like Facebook? It seems unlikely that BRCK has captured enough of the affordable WiFi deployment market to develop a legitimate first-mover advantage, and it’s equally unlikely that anyone over at Facebook is losing any sleep worrying about their plans being disrupted by smaller players.

Also in this week’s show, we share a snippet from a conversation Andile Masuku had with Gareth Cliff— the controversial South African Radio DJ, Idols South Africa judge, and Co-founder & President of Africa’s largest podcast producer, CliffCentral.com. Listen in to hear Gareth’s candid take on why he quit one of South Africa’s most lucrative radio gigs to found a platform that now boasts over 40 podcast titles and garners over 140,000 downloads per week.

Music Credits:

Music by Kevin MacLeod (incompetech.com)

Music licensed under Creative Commons: By Attribution 3.0