Your Curated Weekly Tech News Across Africa, March 8, 2024

This week we are covering stories from Kenya, Nigeria, and South Africa.

FMR LLC, the American investment management firm, has significantly reduced its stake in Safaricom PLC , slashing it by approximately two-thirds from its peak of 921.1 million shares in September 2022 to around 314 million shares. The move coincides with the decline in the telecommunications company's valuation, which has dipped below Sh600 billion from a high of Kshs. 1.6 trillion in 2021.

The decision to divest began in the fourth quarter of 2022, prompted by challenges in receiving dividends attributed to difficulties in obtaining dollars from the Kenyan market. FMR's divestment was necessitated by delays in repatriation, a breach of internal requirements for FMR and other foreign investors, ultimately leading to a withdrawal of foreign investments.

FMR's reduction in stake includes the sale of 92.5 million shares in December alone, constituting 61.3 percent of the total 150.99 million Safaricom shares traded during that period. Consequently, the telco's valuation on the Nairobi Securities Exchange (NSE) has plummeted by 55%, dropping from Sh1.19 trillion to Sh532.9 billion.

Safaricom PLC CEO Dr. Peter Ndegwa C.B.S , acknowledged delays of up to four months in dividend repatriation. The persistent offering of Safaricom shares for sale has created an oversupply compared to demand, contributing to the share price's decline from Sh31.13 in mid-August 2022 to an unprecedented low of Sh11.50 on November 6 of the previous year.

More on this story:? American investor divests from Safaricom?

Nigeria has apprehended two high-ranking executives of Binance , in the wake of the country's prohibition on multiple cryptocurrency trading platforms. Despite the ban, the executives had traveled to Nigeria, only to be detained by the office of the national security adviser. Olayemi Cardoso , the Governor of the Central Bank of Nigeria , has urged an inquiry into cryptocurrency exchanges, citing concerns about illicit and suspicious financial activities. Over the past year, Binance Nigeria has facilitated the transfer of $26 billion, sourced from entities and users with challenging identification processes.?

Responding to these developments, the telecoms regulator has instructed telecom companies to restrict access to several major global cryptocurrency exchanges. To reshape its internal culture, Binance is undergoing reforms, marked by a $4.3 billion penalty paid to US authorities in November last year. The penalty was a result of Binance pleading guilty to charges of money laundering and violations of international sanctions regulations.

More on this story: Nigeria Detains Binance Executives?

Eight Orbit Urban Farms (EOUF), is a pioneering #agritech startup that is revolutionizing Nigeria's agricultural landscape through the adoption of advanced indoor farming technologies. EOUF leverages cutting-edge Artificial Intelligence (AI) and Nutrient Film Techniques (NFT) to tackle food security challenges prevalent in Africa. The primary objective is to ensure year-round production of vital crops such as tomatoes, peppers, fruits, and leafy vegetables, overcoming the limitations and ecological issues associated with traditional farming practices. The innovative technology implemented by EOUF is expected to substantially reduce water consumption by 95%, eliminate the need for herbicides and pesticides, and minimize carbon emissions.

This initiative marks a significant milestone for Nigeria and the broader African agricultural sector. Its goal is to diminish reliance on imported, lower-quality crops, generate thousands of employment opportunities, and catalyze substantial economic growth. EOUF's dedication to agricultural innovation has the potential to establish a new standard for efficiency and sustainability in food production, setting the stage for a transformative era in the agricultural landscape.

More on this story: Nigeria's burgeoning AgriTech Sector?

MTN Group Fintech and 萬事達卡 have entered into a comprehensive multi-market agreement aimed at connecting millions of individuals and small businesses across Africa with cutting-edge digital tools for secure mobile payments. Leveraging Mastercard's advanced technology, this strategic partnership supports MTN's vision to emerge as Africa's foremost fintech platform for both merchants and consumers. The impact of this collaboration will be felt across 13 African markets, including Benin, Cameroon, C?te d’Ivoire, Eswatini, Ghana, Liberia, Nigeria, Republic of Congo, Republic of Guinea, Rwanda, South Africa, Uganda, and Zambia, taking advantage of MTN's extensive subscriber base of 290 million and 60 million active monthly MoMo wallets.

Despite Africa being home to over 1.3 billion people, only about 43% are currently banked, with more than 90% of all transactions conducted in cash. Over the past five years, Mastercard and MTN have worked collaboratively to support various mobile money programs, facilitating payments through global platforms and bringing a significant number of people into the financial mainstream.

The collaboration opens new avenues for consumers to access mobile money remittance services, encompassing both inward and cross-border remittances within Africa. Committed to fostering financial inclusion, Mastercard is actively engaging with multiple telecommunications network companies across the continent and globally to make widespread financial inclusion a tangible reality.

More on this story: MTN and Mastercard deepen partnership