TechPression

Tag: Digitisation

  • Digital innovations, strong fiscal conditions fuel MENA’s growth

    Digital innovations, strong fiscal conditions fuel MENA’s growth

    Banks across the Middle East and North Africa (MENA) region have achieved a remarkable 30% annual increase in net profits, coupled with a 12.2% rise in net assets during the first half of 2023.

    This significant growth, unveiled in a report by EY, also revealed year-on-year returns on equity surging by 6.18%, with the net interest margin expanding by 0.2% during the January-June period.

    This report paints a picture of a thriving banking sector in the region, marked by impressive increases in net profits and assets. The surge in returns on equity and the growth of net interest margins also reflect a region on a positive trajectory.

    Read also: Egypt calls for studies on osmosis technology amid MENA’s water crisis

    Driving Forces Behind Growth

    The upswing in the banking sector is attributed to several factors. Technological advancements, robust fiscal conditions, government investments, a positive outlook for oil and gas prices, and anticipated improvements in the global economic landscape have acted in synergy to stimulate growth. This environment is supported by strengthened oil and gas prices and a notable uptick in non-oil activities.

    The credit demand in the region is expected to benefit from these favourable conditions. The consultancy, however, refrained from providing exact growth figures.

    Remarkably, the GCC (Gulf Cooperation Council) banking sector has undergone a fundamental transformation, advancing along a robust trajectory. This transformation is propelled by a growing demand for lending. Its impact resonates with the region’s broader economic growth, driven by ongoing economic diversification initiatives.

    Charlie Alexander, EY Mena financial services leader, affirms the pivotal role of the banking sector in the region’s economic evolution amid such diversification efforts.

    Operational Growth and Outlook
    MENA banks reported an impressive 18.8% growth in operating income in the first half of the year. Total deposits escalated by 6.08%, and the loan-to-deposit ratio increased by 5.43%. The report forecasts that non-performing loans will remain stable in 2023. Banks are adopting a selective approach to lending.

    Regulatory Focus and Digital Transformation

    Regulatory oversight is poised to take centre stage in the banking industry, particularly in the realms of battling financial crime, electronic know-your-customer (eKYC) processes, anti-money laundering, and cybersecurity. Financial market infrastructure initiatives like eKYC platforms and open banking are also projected to accelerate across the region.

    MENA regulators have intensified their efforts to integrate their economies with the global landscape, aligning existing laws and infrastructure with international standards. The region is experiencing an uptick in acquisitions and investments.

    Digital banking solutions have been growing rapidly to cater to the evolving needs of consumers. Artificial intelligence is playing a pivotal role, delivering faster and more personalised banking services via chatbots.

    The pursuit of net-zero roadmaps by most GCC countries is driving the demand for sustainable finance. This is a vital enabler of the transition to clean energy. Moreover, regional banks are embracing digital currencies, blockchain, and sustainable finance as priority areas, while they focus on enhancing customer experiences with the adoption of chatbots and loyalty programs.

    The MENA banking sector’s impressive performance in the first half of 2023 is underpinned by a confluence of factors, including technological advancements, strong fiscal conditions, and positive outlooks for oil and gas prices. As the region strives for economic diversification and embraces digital transformation, the banking industry’s robust growth is set to play a pivotal role in the overall economic development. Factors such as regulatory oversight and the pursuit of net-zero roadmaps in GCC countries add further dimensions to this thriving sector’s future.

  • Nigeria delays digital broadcasting switchover, 29 states still analogue

    Nigeria delays digital broadcasting switchover, 29 states still analogue

    Nigeria’s Digital Switchover (DSO) journey looks to have no end in sight, as a lack of funding, political will, and new technicalities may have slowed its development.

    The DSO gradual roll-out plan has been scrapped due to the perceived tediousness of the procedure, slowness, financing concerns, and rapidly advancing technology, according to the Guardian report. Instead, the Federal Government intends to carry out a uniform roll-out, the timing of which is uncertain due to the change in government.

    Only around eight states have been covered, albeit partially, in the stepwise deployment. Lagos, Abuja, Kano, Rivers, Kwara, Enugu, Osun, and Plateau are among the states.

    The administration of ex-President Muhammadu Buhari planned to complete the process by December 7, 2022, as championed by the then-Minister of Information and Culture, Lai Mohammed, and the National Broadcasting Commission (NBC).

    According to sources close to the process, while Lagos officially transitioned from analogue to digital broadcasting on April 29, 2022, and aimed to complete the process by October of the same year, the schedule was not met.

    Kano would follow on June 3, Rivers on July 7, and Yobe on July 15, 2022, according to the schedule. The DSO was only partially completed in certain states because just a few cities were covered.

    Other definite dates that followed were Gombe (August 8, 2022), Imo (August 24, 2022), Akwa Ibom (August 31, 2022), Oyo (September 9, 2022), Jigawa (September 23, 2022), Ebonyi (October 10, 2022), Katsina (October 12, 2022), Anambra (November 4, 2022), and Delta (November 11, 2022). However, they did not materialise as predicted, with other states scheduled to be completed by December 2022.

    Indeed, the International Telecommunications Union (ITU) initially agreed with 54 African countries to phase out analogue television by 2015. In only 14 nations, Digital Terrestrial Television (DTT) has reached 90% of homes.

    Read also: New SA Sports Broadcasting Deal To Benefit SABC

    African countries compliant with the digital switchover

    The switchover has been completed in Côte d’Ivoire, Burkina Faso, Gabon, Namibia, Botswana, Zambia, Rwanda, Tanzania, Kenya, Malawi, and Eswatini (Swaziland), but the region’s largest economy, Nigeria, has yet to find its DSO footings, nearly a decade into the process.

    According to DigitalTV Europe, citing Dataxis data, Sub-Saharan Africa (SSA) will continue to witness modest growth in DTT homes through 2027, with analogue transmission remaining in many countries. According to the report, the share of digital terrestrial households will rise from 38% now to 41% by 2027, with Direct To Home (DTH) remaining the most popular TV delivery technology.

    While Nigerian government switchover plans have stopped or moved slowly, commercial broadcasters have leveraged digital broadcasting to expand their reach with payTV services, according to the research. DTT now accounts for 24% of direct pay TV.

    As previously noted, numerous causes have been related to Nigeria’s poor development on the DSO journey.

    Clubhouse reduces employees by 50% for 2.0

    Why Nigeria’s Digital transition is delayed 

    A source close to the previous administration provided additional insight into the country’s analogue-to-digital transition delay.

    He stated that, after realising that doing state-by-state switchover had become too time-consuming and expensive, a deal was reached with StarTimes to use its facilities and equipment, which were already dispersed across the country. According to the source, the agreement was struck but not implemented prior to the change of government.

    “Before, we were launching state by state.” I believe eight states were launched. It was quickly realised that this would not work. So the team decided to work with StarTimes because it already has a mast and other facilities dispersed across the country. As a result, it was determined that the facilities should be used to roll out concurrently across the country, effectively speeding up the process. The contract was signed. The Buhari government departed office at the level of implementation.”

    He believes that if the deal is implemented quickly, the DSO might be completed within a month. However, he stated that the entire procedure still has significant cost repercussions.

    “Startimes already have their mast installed on the ground. All we have to do is show up at the facility whenever we are ready and flip the switch, and everyone can start having fun. In other words, we’re nearly there. Because of the Startimes agreement, the entire country can be launched in a single day. However, there is a monetary implication. “Startimes, whose mast we will use, must be paid, and it is not small money,” the person stated.

    According to the source, while StarTimes did not charge because of the (Startimes/NTA alliance), it merely agreed in principle that its facilities might be used, with the condition that FG was still owed for the earlier launches.

    He stated that the completion of the DSO project is dependent on the next government. If a new minister is chosen tomorrow, he will be briefed and then determine how to proceed, according to him. It can request a new arrangement.”

    He stated that if the new minister requests a fresh agreement, he has numerous possibilities. He stated that he has the option of using a satellite, in which case masts are not required. He stated that while some African countries employ Startimes services, some places still rely on Satellite and that “the new minister can also look at the usage of Satellite to consolidate on Startimes facilities.”

    Another difficulty confronting the DSO, according to him, is rapidly growing technology. “The problem is that technology was not at this level when DSO was conceived.” Right today, technology has advanced beyond where we were ten years ago. As a result, the DSO architecture is said to have evolved and grown more affordable. Previously, you almost had to have a mast everywhere, but I no longer believe it is required. You have the option of using Satellite directly, DMT/DSB, or Arise.

    “The stakeholders must come together and review the White Paper (which must be changed) because it is the foundational standard for DSO.” Because of technological advancements, the White Paper has become obsolete. So, what can be done now is to bring all stakeholders together, hammer out a new modality that will function much faster, and then agree on and introduce an addition to the White Paper, which will then be rolled out immediately,” he added.

  • Airtel In Talks With Kenyan President On Digital Transformation

    Airtel In Talks With Kenyan President On Digital Transformation

    Airtel Africa is in talks with the Kenyan government over the expansion of its digital transformation plans for the country and the African continent.

    The Group Chief Executive Officer of Airtel Africa, Segun Ogunsanya, made a courtesy visit to the President of Kenya, His Excellency Dr William Ruto, Wednesday, February 22, 2023.

    During the courtesy call to the State House in Nairobi, the conversations were centred around Airtel Africa’s initiatives to accelerate and deepen digital transformation in Kenya and throughout Africa.

    Airtel Africa prides itself as a firm believer in the potential of the telecommunications sector. 

    Airtel’s Plans For Africa

    Ogunsanya explained that the telecoms company sector possesses both the inherent potential and the opportunity to unlock economic advantages through the development of new solutions that are tailored to the ever-evolving and expanding requirements of customers. 

    They recognize the importance of working ever more closely with governments to achieve the firm’s vision for Africa. 

    Read also: Airtel Nigeria acquires 5g, 4g spectrums for $317 Million

    According to Ogunsanya, “to effectively achieve this, and in pursuit of our vision to transform Africa, we acknowledge the importance of working ever more closely with governments to deliver on our vision for Africa and promise to our customers.”

    Airtel Provides Affordable 4G Network For Nigerian Customers 

    Meanwhile, to increase digital inclusion across Nigeria and the African continent, Airtel Nigeria has partnered with a phone maker, itel, to allow customers to acquire affordable 4G smartphones.

    To enjoy the 4G experience, customers are only required to purchase the itel A60 smartphone, insert an Airtel 4G SIM card, and get 5GB data to browse the internet and connect to different social media platforms.

    “The itel A60 is specially packaged with a 5GB data, which is accessible once you purchase and activate your phone with an Airtel 4G SIM,” the Marketing Director of Airtel Nigeria, Mr Ismail Adeshina, said at a briefing to announce the partnership between the two organisations in Lagos recently.

    “We believe in enriching the experience of our customers, and we are aware that affordability is a major challenge when it comes to enjoying a 4G service.

    “Therefore, this partnership allows us to offer our customers the opportunity to enjoy the 4G experience at a pocket-friendly price,” he added.

    Also, the Director of Corporate Communications and CSR at Airtel Nigeria, Mr Adefemi Adeniran, said, “At Airtel Nigeria, we are driven by the global sustainability and business agenda of Airtel to increase digital inclusion across Nigeria and the African continent, and we believe that this partnership will help in accelerating this goal as it is focused on migrating customers on 2G and 3G to 4G.”

    Microsoft to upskill lecturers expertise in Kenya

    On his part, the Marketing Manager of itel West Africa, Mr Oke Umurhohwo, said, “in line with the 4G for Everyone tagline, the itel A60 will bring a different dimension to how the brand’s target users surf the internet and engender an overall amazing experience for customers.”

    The entry-level Itel A60 has a number of unique features that set it apart from other phones in this category and provide the user with a unique experience while providing value.

    The device offers a 5000mAh battery for longer uptime, 6.6″HD+ waterdrop full screen for an immersive display experience, 32+2GB memory, 8MP+QVGA rear camera + 5MP FF camera+AI selfie, as well as facial recognition and fingerprint protection.