Author: Gugu Lourie

Telecommunications network provider MTN’s Zakhele-Futhi’s empowerment scheme will list on the JSE on November 25, the Johannesburg-based telco said on Monday. MTN’s previous scheme, MTN Zakhele, listed on the JSE in 2015, but delisted in the next year as the scheme was wound up. Recently, MTN’s Zakhele-Futhi’s scheme was found to be inconsistent with South Africa’s Broad-Based Black Economic Empowerment (BBBEE) Act. In July, the BBBEE Commission disclosed that the scheme, which was announced by MTN on 12 September 2016, is inconsistent with the act that provides a legislative framework for the promotion of BBBEE. “The Commission found that the…

Vodacom doles out R3.4 billion ($224 million) to buy 26% stake owned by Mirambo Holdings in Vodacom Tanzania. The South African-based mobile phone operator now owns 75% of Vodacom Tanzania. Mirambo Holdings is the investment vehicle of Tanzanian business tycoon Rostam Aziz. The Vodafone-owned group acquired 588 million shares in Vodacom Tanzania. The transaction was effective on 27 September 2019, and purchase consideration to the value of $224 million (R 3 417 million) was paid in cash, Vodacom said on Monday. Vodacom Tanzania controls 32% of the market share of the country’s 40 million mobile subscribers, ahead of Tigo Tanzania,…

Vodacom has disclosed on Monday that it could pay as much as R1 billion to acquire Internet of Things (IoT) innovator IoT.nxt. In May, Vodacom announced plans to buy 51% stake in IoT.nxt for an undisclosed amount to enhance its current IoT offering. The Vodafone-owned mobile phone firm disclosed on Monday that it bought the 51% stake in IoT.nxt for R1 billion, of which R469 million was settled in cash, with the remainder being contingent on the future performance of the business. IoT.nxt creates data-connectivity between new data sources and legacy systems which allows for real-time data availability across a…

Vodacom’s diversification into financial services is slowly paying off for the Vodafone-owned mobile phone operator. The company announced on Monday that revenue from its Financial Services business jumped by 37.1% to almost R1 billion, as Airtime Advance, insurance and its recently launched VodaPay service all gained in popularity. “Our strategic focus on financial services supported strong performance, growing revenue by 37.1% to R972 million,” said Shameel Joosub, Vodacom’s CEO. The mobile phone operator said it has advanced R4.9 billion in airtime via its Airtime Advance platform to 9.9 million customers. Furthermore, Vodacom added that its insurance revenue rose 21.8%, and…

Vodacom South Africa’s streaming service Video Play continues to attract more customers. Video Play is now bigger than Netflix South Africa, the world’s biggest streaming service. The Vodafone-owned company announced on Monday its Video Play service has more than 1 million customers engaged on our video platform, with 14.8 million daily, weekly and monthly subscriptions over the last six months. The company added that its digital services in video, music, sports and gaming are providing customers with more reasons to consume data as it increases engagement through our strategy of “one more service” to the customer. Netflix is projected to…

Greenlight Planet, a pay-as-you-go solar player, is pursuing a strong telecom-focused strategy that aims to have a far-reaching impact on more than 600 million unelectrified consumers across the African continent. Since its founding in 2009, the company has become a leading global provider of solar energy products to over 27 million rural consumers in more than 60 countries. The company has sold over 12 million Sun King solar home energy products to off-grid households around the world.  It also reaches remote, off-grid customers through a unique business model involving a vast network of micro-entrepreneurs, more than 300 global strategic distribution partners.…

The Southern African Venture Capital and Private Equity Association (SAVCA), in collaboration with Investec and supported by Sanlam Investments, has named AgriTech firm Aerobotics as 2019 Best Startup or Venture Capital Company. SAVCA is the industry body for the private equity and venture capital industry in Southern Africa. Aerobotics is a South African AgriTech company that builds advanced analytics on top of aerial drone and satellite imagery to deliver precision farming tools for clients. In 2018, Nedbank partnered with Aerobotics to conduct an initial experiment by flying drones over pecan nut farms of a prospective agricultural client at the time.…

ProfitShare Partners has secured a R25 million capital line from the Vumela Fund, which is managed by Edge Growth Ventures. Launched in 2018, Vumela’s third fund focuses on supporting high growth SMEs in the banking supply chain with good economic and impact returns – a key driver of ProfitShare Partners value proposition to the SME market. The Vumela Fund is a R588 million Social Venture Capital Fund that Edge Growth manages on behalf of the Vumela Trustees. The fund is a business with the objective of creating stakeholder value by investing in, growing and divesting of SMEs and providing value-added growth…

Health workers in rural and remote areas continue to seek advice from specialists on behalf of their patients. So it’s no surprise that Vula Mobile, a medical referral startup, is seeing its health app gaining traction as more people start to utilise its online services. Vula Mobile is the brainchild of Dr William Mapham, who conceived the idea for the app while working at an Eye Clinic in rural Swaziland. He experienced first-hand the difficulties faced by rural health workers when they need specialist advice. In 2015, the app which was then only available to assist with eye health and…

Jamii Cities, a platform that connects the needs of the best tenants with the best landlords, has been awarded an additional R450 000 of grant funding by AlphaCode. This was after Jamii Cities and other startups completed a AlphaCode Incubate programme, one year of intensive mentorship, startup principles bootcamps and being connected with an extensive network. The eight startups were awarded entrepreneurial packages of R2 million each in 2018. Jamii Cities is a FinTech startup that focuses on property. The business attracts, selects, onboards and rewards tenants for good financial behaviour related to rental payments, which incentivises a longer stay…

Telkom to hold an online auction of its real estate portfolio located nationwide throughout South Africa. The real estate portfolio features ±34 properties consisting of vacant land and single-storey buildings. The properties boast land extents ranging from ±400m² to ±19,000m² and include; vacant land within the Northern Cape: Hartvallei (Jan Kempdorp), Western Cape: Knysna & Graafwater, and Mpumalanga: Delmas. GoIndustry, the auctioneer and agent for the seller, said in a statement that the online auction, lots closes from 26 November 2019. The auction website at Online Auction Of Telkom Real Estate provides continuous access to the property information. GoIndustry…

Telkom has revealed its Big Deal for November 2019 – a 20GB LTE package. The deal is based on a SmartBroadband Wireless 20GB package. If you buy this package you will get: 10GB Anytime data 10GB Night Surfer data for just Huawei E5577 Mi-Fi Modem Price: R139/m x 24m The deal is valid until 31 November 2019 or while stocks last. Users are advised to check Telkom’s LTE coverage map before purchasing the deal to ensure they are in an LTE-covered area.

MTN Group, Africa’s largest mobile phone operator, has terminated talks with Econet Wireless Zimbabwe. As part of its R15 billion fund-raising drive, MTN was in talks with Econet Wireless Zimbabwe to sell its 53% stake in Botswana Mascom. “Econet’s unsolicited offer to acquire our 53% stake in Mascom has been terminated following certain conditions of the sale not being met,” MTN Group CFO Ralph Mupita said on Thursday. MTN had identified Mascom as non-core to its operations after the company embarked on a review of its investment portfolio. Its shareholding didn’t give it control of Mascom and the power to execute…

MTN Group, Africa and the Middle East largest mobile phone operator, announced on Thursday it has added 10.4 million new subscribers for mobile, data and mobile money services for the 9 months to September 2019. The Johannesburg-based company said subscribers rose quarter-on-quarter (QoQ) by 3,5 million to 243,7 million. The company, which is valued at R179 billion on the JSE, added that active data subscribers increased QoQ by 4,7 million to 87,0 million. While active MTN Mobile Money customers rose QoQ by 2,2 million to 31,7 million. The operator said service revenue rose year-on-year (YoY) by 9,6%, with earnings before…

Prosus Ventures (formerly Naspers Ventures) has led a $40 million (R600 million) investment in ElasticRun, a virtual logistics network that is revolutionising consumer products delivery across India. The funds have been raised with participation from existing investor Avataar Ventures and Kalaari Capital. The new investment round will help the company expand its deeply penetrated logistics network, which is already helping to reshape India’s $300 billion logistics industry. ElasticRun will also use the new funds to further build its technology platform to accommodate new product lines, expand the platform to additional categories, and to evolve its analytics and machine learning platforms to…

PayU, the payments and Fintech business of Prosus, today leads the fresh round of investment worth $11 million (R165 million) through the acquisition of a minority stake in Fisdom, a high growth consumer wealth tech platform in India. In addition to PayU, current investors Saama Capital and Quona Capital also participated in this round. This move marks PayU’s entry into a new segment, wealth tech, and demonstrates the company’s commitment towards investing in and building a broader FinTech ecosystem in India around core payments and lending businesses. Founded by Subramanya SV and Anand Dalmia, Fisdom is a high-growth wealth tech…

South African firm Axon Wireless has launched Africa’s first ‘tap and go’ system for mobile SIM (Subscriber Identity Module) card registration.   Ivory Coast is the first country on the continent where mobile users are able to comply with KYC (Know Your Customer) requirements by simply placing their national identity cards on a mobile phone screen and letting the agent’s pre-loaded Axon software do the rest.   By instantly reading and recording citizens’ identity information, SIMs are registered in an astonishing 45 seconds. “Mobile’s all about convenience and we’re extending that efficiency to the customer sign-up process. The system has…

The CEO and other executives of the troubled JSE-listed technology group 4Sight Holdings have resigned. The company informed investors on Wednesday that CEO Vince Raseroka has resigned with immediate effect, having also tendered his resignation as an employee. “To afford the reconstituted board the opportunity to allow for a smooth transition, Gary Lauryssen and Jason du Plessis will remain employed by the 4Sight Group. Tinus Neethling will remain in his current role as Telco Cluster head within the 4Sight Group,” the company informed investors. Lauryssen, du Plessis and Neethling have also resigned at 4Sight with immediate effect. The company announced…

Blue Label Telecoms remuneration committee seems not to be perturbed by shareholder destruction in the company. The committee has rewarded the executives handsomely despite the company’s market value being hit hard by poor investment in struggling mobile phone operator Cell C. Together with Cell C’s trading loss and further impairment of its property, plant and equipment and an impairment of our own investment, Blue Label recorded a net loss related to Cell C of more than R6 billion. The company which used to be regarded as a JSE’s best-kept secret has seen its shares plummet 50% year-to-date and dropped 87%…

Net 1, the company behind Cash Paymaster Services that used to run SA’s social grant payment system, has injected R300 million in embattled mobile phone operator Cell C. Cell C is 45% owned by JSE-listed Blue Label Telecoms, 15% by Net 1, 3 Special Purpose Vehicles (SPVs) collectively hold 30% (in turn held by 3C Telecommunications and further in turn held as 29.4% by the Employee Believe Trust, 45.6% by Oger Telecoms and 25% by broad-based black empowerment grouping CellSAf); and Cell C Management and Staff hold 10%. Net 1 and Blue Label Telecoms have written down to zero the…

Net 1, the company behind Cash Paymaster Services that used to run SA’s social grant payment system, is considering selling its 30% stake in DNI, the largest wholesaler of Cell C starter packs in the country. The JSE and Nasdaq-listed firm has framed the sale to generate additional liquidity to fund its other businesses. Net 1 disclosed in its recently published annual report that on May 3, 2019, its wholly owned subsidiary, Net1 Applied Technologies South Africa or Net1 SA, entered into an agreement to grant a call option to DNI to acquire Net1 SA’s remaining 30% interest in DNI.…

The co-founders of Blue Label  Telecoms, which owns 45% of Cell C, after having bought the stake in a R5.5-billion deal last year, have resigned from the mobile phone operators’ board. With immediate effect, both co-founders and co-CEOs of Blue Label Telecoms Brett and Mark Levy are relinquishing their positions as non-executive directors of the Cell C board. The market value of Blue Label Telecoms has been hammered by Cell C’s troubles in the past few years. “[The Levy Brothers] will be concentrating their efforts on Blue Label only,” Blue Label Telecoms informed investors on Thursday. It is understandably, Blue…

Altron is set to continue to seek acquisitions as the company seeks to widen its reach, according to the company’s CEO on Thursday. “Our focus will remain on organic growth, supplemented by acquiring select small-to-medium-sized businesses in our focus areas, which will lead to enhanced capabilities and expanded geographic footprint,” said Altron’s Group CEO Mteto Nyati. He didn’t provide further details about targeted potential buys. Altron reported on Thursday a 4% rise in headline earnings per share (HEPS) from continuing operations to 73 cents a share and an interim dividend of 29 cents per share was declared for the six…

Prosus on Tuesday announced a rival bid for the U.K. based food delivery service Just Eat. The Euronext and JSE-listed company has made a bid of 4.9 billion pounds ($6.35 billion or R94 billion) or 710 pence a share, in cash. Just Eat is looking to complete a merger with Takeaway.com. The Naspers-owned firm said offer represents a premium of 20% to the bid from Takeaway.com. “We believe our global experience and resources can help Just Eat to achieve its significant potential. Our plan is to support the Just Eat management team, with whom we have worked closely as joint…

Old Mutual has provided financial services and products to individuals and business customers since 1845. In a move aimed at experimenting at lower costs and improve the experience for existing customers and attract new ones, Old Mutual has turned to Amazon Web Services (AWS). Old Mutual has selected AWS as its preferred cloud provider and will migrate its digital customer platforms, core insurance applications, and product administration systems to the cloud. Old Mutual is an African financial services group that offers a broad spectrum of financial solutions to retail and corporate customers across key markets in 14 countries. “AWS provides…