TechPression

Tag: economy

  • Tech: The New ‘Oil’

    Tech: The New ‘Oil’

    What comes to your mind when you hear of oil? Wealth, right? What do your work colleagues mean if they jokingly ask you, “Have you gotten another job in an oil company?” They probably asked you such a question because you are intentionally or unintentionally ‘playing’ with your job because you’ve seen a higher-paying job.

    People working in an oil company are seen as men and women of timber and calibre. Men and women of affluence who are swimming in wealth. It is generally believed that once you work in an oil company, you live in luxury.

    Read also: TD Africa and CISCO’s Impact on Tech Skills in Africa

    Nigeria’s Economic Transformation: From Agriculture to Oil

    Nigeria experienced a notable surge in foreign exchange revenues amid the oil boom period in the 1970s. Until today, the petroleum sector has been the country’s highest revenue-generating sector since its discovery in 1956, thereby relegating the agricultural sector to the background, formerly the country’s primary revenue-generating sector.

    This article was not intended to bore you with Nigerian oil, which has been the bane of corruption in Nigeria today, but to use it as an analogy and draw your attention to the kind of wealth tech can fetch you.

    From Oil to Tech: The Evolution of Profitable Sectors

    As of today, tech experts are the most sought-after professionals in every organisation, and they are paid handsomely well for their expertise. One thing that makes tech different is that it’s not concentrated or monopolised by a few individuals like oil.

    Also, it doesn’t have to relegate any revenue-generating sector to the background, just as the discovery of oil did to agriculture. In contrast, tech is needed in every sector to improve their productivity, including the agricultural and oil sectors. That’s why, as somebody looking forward to building a career, you might want to consider tech.

    When you ask an average intending university student what course he plans to study, high-value courses such as medicine, nursing, accounting, engineering, law, and the like come out of his mouth. As an intending university student, you can add Information Technology (IT) or tech to the list of high-value courses. You can work anywhere as a tech specialist, including in the field of high-value courses mentioned earlier.

    Tech is specially designed, so you may not have to attend university to acquire this skill. You can learn it from any centre offering any tech skills. You can even learn it online from the comfort of your home. So, it is not limited to the four walls of the formal educational institution. This is to tell you that you don’t have to pay through your nose before acquiring tech skills.

    There are arrays of technical skills you may want to consider learning. They include data analysis, graphics design, cybersecurity, programming, product design, digital marketing, technical writing, python, product management, web development, cloud computing, mobile development, machine learning, DevOps, Artificial Intelligence, software development, etc.

    Read also: Nigeria gets 7th in internet speed among African countries

    I will give you an assignment to go and check the list of the top wealthiest people in the world. You’ll observe that most of them make their fortune from tech. I am talking of Elon Musk (Twitter), Jeff Bezos (Amazon), Mark Zuckerberg (Facebook), Larry Ellison (Oracle), Larry Page (Google), Sergey Brin (Google), Bill Gates (Microsoft), Steve Ballmer (Microsoft), and the likes.

    Most advanced countries are also generating a significant chunk of their revenues from tech. For Nigeria to be counted among these countries, the government must invest more in developing human capacity for its teeming population in tech.

    Part of the government’s efforts to equip its teeming population with tech skills is through the introduction of the 3 Million Technical Talent (3MTT) program. The program is an initiative of the Federal Ministry of Communications, Innovation & Digital Economy to generate a pipeline of technical talent in the country. The government must be commended for this. However, more still needs to be done.

    Kudos must also be given to various non-governmental organisations for organising tech skills for interested young people. Young people can leverage these various platforms to equip themselves with skills that may interest them.

    You can also continue to check on Techpression Media to acquire the information necessary to advance your tech skills.

    Tech is the future.

  • Digital tax collection can boost Africa economy, save $60 billion

    Digital tax collection can boost Africa economy, save $60 billion

    Statutory Remittances in Africa, Africa’s first White Paper, was published today by Bento, a pan-African digital payroll and HRM platform with tax remittance capabilities. 

    The White Paper discusses taxation regimes in 53 African countries and the benefits of computerized payroll systems for precise income tax and other deductions.

    Taxes pay for things like security, healthcare, education, and infrastructure. Numerous African countries’ tax systems don’t bring enough money to cover their wants. The vast informal industry that doesn’t pay taxes is to blame.

    Currently, the informal industry does not use domestic resources well. That’s why African countries can’t get tax breaks from a field where 85% of their people work (90 of% in sub-Saharan Africa), according to the Bento research.

    The failure of taxation systems has forced many countries to seek aid from the West. African states can no longer borrow from foreign governments to help them cope with a global economic recession.

    Bento Co-Founder and CEO Ebun Okubanjo stated that African countries lose more than they receive in foreign development funding.

    African countries lose at least $60 billion in taxes, more than foreign development aid and somewhat more than the DRC’s GDP, according to our White Paper. Embracing a digital revolution will free Africa from foreign aid. More effective tax collection is possible with our personnel and solutions. Reduced evasion and tax compliance can boost revenue from efficient tax collection, he noted.

    Read also: South Africa’s SARS unveils plan to digitise VAT collection process

    Digital tax collection could fix informal taxes

    Taxation is challenging and requires careful planning to build an effective, equitable, and sustainable system, the study stressed. Maximum sector growth is best achieved through digital tax collection. African informal sector incomes are not taxed or regulated like PAYE.

    According to the paper, the informal sector, which is largely unregulated, offers a missed opportunity for DRM. Since many Africans question how their taxes are spent, accountability has been their most significant issue. This recurring issue stresses the need for computerized tax collection approaches.

    However, few African nations have employed computers to tax the unorganized sector. For instance, Rwanda and Ethiopia. Since they file and collect taxes on computers, technology may affect tax collection.

    The Federal Inland Revenue Service (FIRS) and the Market Traders Association of Nigeria (MATAN) began using unified systems technology to collect and send VAT from MATAN’s members, largely unorganized sector workers, in July 2023. MATAN contains 36 states, 774 local administrations, and 40 million companies in the FCT.

    A computerized instrument simplifies VAT collection and transmission in the informal and market sectors under the “VAT Direct Initiative”. Technology to list traders for VAT collection and Service submission would generate more revenue for the Federation and the company.

    What will happen is unclear, but this partnership aims to reduce taxes, touting, and unlawful tax collectors while protecting informal business sites. It’s intended to increase tax revenue and State and Local Government revenue.

    At verdict 

    The paper shows that technology-driven solutions can help close the taxation gap, notably for the informal sector, in Ethiopia and Rwanda. However, it suggests a robust database of informal sector actors to guide fiscal management decisions.

    It also advises creating a taxation model that informal sector actors can easily use, and tax authorities can manage.

    Bento software helps African governments prepare and submit tax returns and payments electronically, minimizing administrative overhead. Ebun Okubanjo, Bento CEO, said real-time reporting gives tax authorities current tax collection and trend data.

  • Analysis of Airtel Africa’s shares within current economy

    Analysis of Airtel Africa’s shares within current economy

    Chief Executive Officer of Airtel Africa, Olusegun Ogunsanya, has decided to sell 666,174 of the company’s ordinary shares. 

    Airtel Africa is one of the biggest telecom businesses on the African continent. 

    On August 4, a transaction was completed at the London Stock Exchange (LSE) that entailed the sale of 666,174 shares at a price of £1.37 per share. 

    Ogunsanya made a profit of £757,440.70 as a result of the sale, and the telecom claims that this money will be used to finance the acquisition of property. It is important to point out that Ogunsanya still has ownership of 4,325,282 ordinary shares in the telecommunications company. Both the Nigeria Stock Exchange and the London Stock Exchange are home to listings for the company Airtel Africa. 

    After the release of Airtel Africa’s financial statements for the first quarter of 2023, this announcement has been made. The reports indicate that throughout the time period under consideration, the telecommunications company racked up a hefty loss of $151 million. This development came about as a direct result of a decision made by the Central Bank of Nigeria to standardise the currency exchange rate in an effort to maintain the value of the national currency.

    As a result of the unification, the exchange rate for the naira against the dollar skyrocketed, going from N460 to $1 to $790 to $1. The rate reached N900 as of the previous week, which led to an increase in the price of petrol at the pump. Analysts have asserted that the events that are currently taking place are required in order for the country to overcome its economic difficulties; however, the typical Nigerian may not be as hopeful about this.

    Read also: Airtel Africa Investors Lose N483 Billion In 24 Hours

    Impact of this trade on Airtel Uganda

    Airtel Uganda Limited, a wholly owned subsidiary of AIRTEL Africa, will be listed on the Main Investment Market Segment of the Uganda Securities Exchange, according to an announcement made by AIRTEL Africa.

    Pursuant to a corporate action that was submitted to the Nigerian Exchange Limited (NGX) and signed by Simon O’Hara, the Group Company Secretary, the following was determined:

    “Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, today announces that its wholly owned subsidiary in Uganda (Airtel Uganda Limited) has announced the intention to publish a prospectus and float shares on the Main Investment Market Segment of the Uganda Securities Exchange.”

    It has been decided that Airtel Uganda Limited will conduct an initial public offering (IPO) of 8,000,000,000 ordinary shares. This will constitute twenty percent of the firm.

    This step is being taken in order to both comply with regulatory standards and increase local ownership. The approval of the Capital Markets Authority of Uganda (CMA) is required prior to the actual publishing of the prospectus.

    The firm also mentioned that the share offer will comprise the sale of ordinary shares by Bharti Airtel Uganda Holdings B.V., a wholly-owned subsidiary of Airtel Africa, subject authorisation of the transactions from Uganda’s Capital Market Authority. This information was included in the company’s announcement.

    After deducting all of the costs that are associated with this offering, the remaining funds will be donated to Airtel Africa.

    Airtel Africa, which is listed on both the Nigeria Exchange Limited (NGX) and the London Stock Exchange (LSE), stated that the initial public offering (IPO) intends to increase meaningful local ownership of Airtel Uganda Limited, and that preference will be given to Ugandan investors. This would help in contributing to the expansion of the capital markets in Uganda.

    Airtel, Mastercard provide mobile money transfers in Africa

    The proportion of the African market held by Airtel Africa

    Airtel Africa, which is a part of Bharti Airtel, is a significant provider of telecommunications services over the entirety of the African continent. It is the dominant business in the countries of Chad, Malawi, and Niger. In terms of market share, it comes in at number three in Nigeria. When considering the nation located in West Africa, it is important to note that the Nigerian Communications Commission (NCC) recently made public its report for the year 2022. 

    According to the conclusions of the regulatory body, Airtel Nigeria achieved the same level of market share as Globacom, which was 27% of the market in the country. On the other hand, its total number of subscribers (60,065,904) is just somewhat less than that of Glo’s (60,290,012). 

    In the meantime, Airtel has been making some noteworthy attempts to increase its subscriber base across all of the locations in which it is active. For example, the highly anticipated 5G network was just activated in Kenya not too long ago. Even though it holds the position of second-largest market leader in Kenya, Safaricom’s influence much outweighs that of this company.

    The telecommunications company has also only recently made 5G available to customers in Nigeria, making it the second major telco in the country to do so after MTN Nigeria. There has been no progress made on the 5G rollout schedule for Glo and 9 Mobile. Even though the market leader, MTN, already has that service up and running, it would be intriguing to see how Airtel fares in the competition to provide 5G to consumers.

    The previous week also saw the announcement of a new partnership between Airtel and MasterCard, which will facilitate easier money transfers for Airtel’s clients across Africa. The consequences of it are not yet known.

  • 5G Technology to revolutionize Nigeria’s industries, boost economy

    5G Technology to revolutionize Nigeria’s industries, boost economy

    At a recent Nigerian-British Chamber of Commerce (NBCC) Thought Leadership Programme, industry experts discussed the profound impact of 5G technology on Nigeria’s economy and various sectors.

    Mrs Onyinye Ikenna-Emeka, the General Manager of Fixed Broadband at MTN Nigeria Communications, emphasized the potential of 5G to enhance efficiency and productivity for both Small and Medium Enterprises (SMEs) and large-scale industries across the nation.

    Read also: By 2028, 270 million MENA subscribers will have access to 5G

    The 5G Journey: A Technological Advancement Revolutionizing Society

    Ikenna-Emeka highlighted the journey from 1G to 5G as a testament to humanity’s relentless pursuit of technological advancement, with each generation shaping modern society in significant ways. She stressed that 5G had the potential to revolutionize numerous industries beyond smartphones, enabling advancements in autonomous vehicles, remote healthcare, smart cities, virtual reality, and more.

    Recognizing the critical role of SMEs in driving the economy, Ikenna-Emeka emphasized that these businesses stood to benefit greatly from technological advancements. 

    “5G  is very relevant to industrialisation as it digitizes processes via the internet of things as devices interact with each other in real time therefore playing a large role to galvanize the economy and create more opportunities.” She said.

    She outlined MTN’s commitment to co-developing solutions, including 5G adoption, to help SMEs achieve the necessary efficiencies and drive their success. With its digitization capabilities and real-time interaction among devices via the Internet of Things, 5G can play a pivotal role in galvanizing the economy and creating more opportunities.

    “As a result, MTN prides itself in co-developing solutions such as 5G adoption to help these classes of businesses achieve the needed efficiencies and effectiveness to drive their success.” She said.

    Data-Driven Solutions: Enabling Effective Decision-Making Across Sectors

    Ikenna-Emeka underscored the importance of information and effective decision-making in today’s world. She highlighted that 5G’s ability to facilitate data analysis, consumption, and interpretation across various sectors of the economy made it a crucial enabler of the digital ecosystem. 

    Embracing data-driven solutions and the levels of industrial automation offered by 5G, businesses could unlock new opportunities for competitiveness.

    Creating Opportunities Through Technological Up-Skilling

    Dispelling concerns about job displacement, Ikenna-Emeka emphasized that the evolution of 5G would create new opportunities requiring technological up-skilling. She encouraged individuals to acquire the necessary skills to thrive in a technologically dynamic environment. Organizations must prioritize relevant skill adoption to ensure success in a digitally advanced world.

    “Organisations are ensuring that the skills that are adopted are relevant in a digitally advanced world.

    “So, it won’t displace jobs but will create opportunities and what I will say is that humans should just continue to up-skill, re-skill and learn new things,” she said.

    Ikenna-Emeka urged organizations to invest in infrastructure that guarantees cybersecurity. She emphasized that 5G technology alone cannot address the risks associated with cyber threats. To foster more investments in the technology space, Nigeria must address challenges related to the vandalism of technological infrastructure.

    5G: NCC canvasses for control over mining, usage of data

    MTN’s Commitment and Collaborative Efforts

    Ikenna-Emeka reiterated MTN’s commitment to expanding 5G technology coverage across Nigeria. She emphasized the importance of collaboration between the government, businesses, and other stakeholders in driving the penetration of 5G. Drawing inspiration from South Africa’s use cases of 5G in the mining ecosystem, she called for the creation of an environment that allows the expression of various use cases in Nigeria, such as private networks for oil and gas environments, smart cities, smart taxation, and smart primary healthcare facilities.

    The President of NBCC, Ms Bisi Adeyemi, explained that the Thought Leadership Programme aimed to bridge the knowledge gap and leverage the opportunities presented by technology adoption. Nigeria, being the largest economy in Africa with a young, vibrant, and tech-savvy population, has a government committed to developing the Information and Communication Technology (ICT) sector. 

  • Cassava Technologies pledges $250 million to SA economy

    Cassava Technologies pledges $250 million to SA economy

    Cassava Technologies has committed to making a total investment in South Africa of R4.5 billion (about $250 million) through its three different business groups, which are Liquid Intelligent Technologies, Africa Data Centres, and Distributed Power Africa.

    On April 13th, the statement was made in support of South African President Cyril Ramaphosa’s initiative to attract investment into the country during the fifth South Africa Investment Conference (SAIC).

    Cassava, which has operations in Africa, the Middle East, Europe, the United States of America, and Latin America, will keep delivering globally recognised services and products to South Africa through the group’s renewable energy, cloud & cyber security, data centres, and broadband connectivity business units thanks to the investment. Cassava currently has operations in Africa, the Middle East, Europe, the United States of America, and Latin America. 

    Hardy Pemhiwa, President and Group CEO of Cassava Technologies, stated that “South Africa accounts for the largest proportion of Africa’s industrial GDP with a sophisticated and growing ICT sector. The country’s unique combination of highly developed first-world economic infrastructure and a stable macroeconomic environment affords businesses like ours a conducive investment environment in which we can partner with government to drive economic development and create jobs.”

    Read also: Fast Credit Ltd gets investment grade rating from Agusto & Co and DataPro

    Cassava’s Investment Pledge

    The Cassava investment pledge includes several important projects, such as the extension of the fibre network operated by Liquid Intelligent Technologies, the expansion of the capacity and footprint of Africa Data Centres, improved cloud and cyber security capabilities, and the rollout of clean, renewable energy in South Africa by Distributed Power Africa.

    According to the company, the investments will go towards promoting South Africa as an attractive investment location and enable greater inclusion of all South Africans. This will be consistent with Cassava’s vision of a digitally linked future that leaves no African behind.

    Previous Updates on Cassava Technologies and its Subsidiaries 

    The signing of a Memorandum of Understanding (MoU) between the Zambian Minister of Science and Technology and digital infrastructure provider Liquid Telecommunications, one of Cassava Technologies’ subsidiaries, took place sometime during the month of March 2023. 

    As part of the Giga initiative, which is being directed by the International Telecommunication Union and Unicef and aims to connect every school in the world to the internet, Liquid Telecommunications has been given the responsibility of bringing Internet connectivity to schools as well as the healthcare industry.

    Liquid Intelligent Moves To Empower Nigerians In Tech Delivery

    The CEO said, “We recognise the significant efforts that the Zambian government is making to accelerate the country’s digital transformation and share His Excellency President Hichilema’s vision for the development of Zambia’s digital economy. Given the conducive investment environment, we are committed to further investments in Zambia’s digital infrastructure.”

    Africa Data Centres, another subsidiary of Cassava Technologies, has recently formed a partnership with TechAccess in order to install a data centre infrastructure management system (DCIM) across all of its facilities located in Johannesburg and Cape Town, South Africa; Nairobi, Kenya; and Lagos, Nigeria.

    TechAccess is in charge of all aspects of the platform’s development, including its software, hardware, integrations, and overall project management. This will comprise of technologies from two distinct vendors: software to optimise data centre operations provided by EkkoSense, and a platform to manage assets provided by Assetspire.

    TechAccess CTO Jaxon Martin said, “We aim to deliver next-generation DCIM together with our partners Assetspire and Ekkosense through innovative and industry-leading analytics and machine learning, giving our customers such Africa Data Centres a true, competitive edge.” 

    “This will assist Africa Data Centres and its partners to gain critical insights into their operations, with direct and instant access to real-time data at the click of a button. When combined with analytics, these insights will enable our customers to realize a wide range of savings in terms of time, money, and increased productivity,” Africa Data Centres CEO, Tesh Durvasula also said.