Atta Africa Financial Update

Executive summary: Ntel in a billion dollar push for Nigeria’s telecoms market.

NatCom Development & Investment, owners of Ntel the latest entrant to Nigeria’s telecommunications market, says it is making investments of up to US$1 billion over the next four years in Nigeria as it prepares to roll out commercial operations in four days.

The growth in broadband is also an opportunity for Ntel, with projections that there will be 200 million mobile broadband customers in Nigeria by 2020.

Nigeria’s information and communications technology sector has grown exponentially since the licensing of GSM operators in 2001 and has become the leading mobile telephony market in Africa, in terms of subscriber base and revenue and today contributes US$52 billion annually to nominal GDP.

The resultant increase in investor confidence led to an abundant inflow of foreign direct investment (FDI) of over US$32b over the last 14 years.

Fact: Nigeria is home to the happiest and the most optimistic people in the world! - A study of more than 65 countries published in the UK's New Scientist magazine suggests that the happiest people in the world live in Nigeria. In a 53-country Gallup poll, Nigerians were rated highest for optimism.

Orange to invest in Nigeria’s Africa Internet Group

 
  • French telecommunications company Orange is to invest US$75 million in Nigerian e-commerce group Africa Internet Group
  • AIG, which was founded in Nigeria in 2012, already counts Goldman Sachs, telecoms group MTN and Germany’s Rocket Internet among its shareholders
  • It owns several technology firms across 26 African countries including online retailer Jumia, delivery app HelloFood, hotel booking platform Jovago and online real-estate marketplace Lamudi

Uganda eases key lending rate to 16%

 
  • Uganda’s Central Bank has lowered its policy rate by one percentage point to 16 per cent in its bid to shore up an economy whose growth contracted during the first three months of this year
  • The Bank of Uganda has, through reduction in the benchmark lending rate, signalled to commercial banks to reduce their lending rates
  • Uganda’s import-export balance will also remain vulnerable to the turbulences in the global economic environment in the medium-term

Kenyans spent US$1 billion on imported cars last year

 
  • Kenyans purchased Sh117.6 billion (US$1.16b) on imported cars last year, highlighting the appetite for luxury goods by the growing middle class
  • This marked a 15.6 per cent growth in the value of vehicle imports into the country
  • Small used cars account for more than 70 per cent of all vehicles shipped in from markets like Japan and UK

Key commercial and political activity in Africa for private equity investors by DCE Partners, UK Private Equity advisors to Atta.