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The Airtel Pragmatism in Africa

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A new era begins for Airtel Africa: “Airtel Africa has entered into a landmark agreement with Elon Musk’s SpaceX to deliver Starlink’s high-speed satellite internet across its 14 African markets, in a bold push to bridge the continent’s long-standing connectivity gap—especially in rural and underserved regions.”

This is called pragmatic business model. Yes, if the terrestrial will be disintermediated by the satellite, the best defense is to partner with the satellite. And Airtel makes the case for Starlink:

Airtel Africa’s CEO, Sunil Taldar: “Next-generation satellite connectivity will ensure that every individual, business, and community have reliable and affordable voice and data connectivity—even in the most remote parts of Africa.” Airtel Nigeria has one of the finest engineers in Nigeria – my FUTO classmate Deus Uche Osuji (FNSE, FIMC, MNISafetyE, MIET) as the Vice President and Head of Operations, and that means we expect many goodies on network quality and efficiency there. Uche – congrats again, we will wash am whenever I make it to Lagos! Lol

Airtel Nigeria: I am ordering for the provision of broadband in Ovim Community School and Secondary Technical School Ovim. I will pay for satellite broadband services within the schools, to support teaching and learning in these schools. As you roll out in Nigeria, include these two schools among the main clients.

Airtel Africa Partners With SpaceX to Roll Out Starlink Across Continent, But Affordability Concerns Loom

Airtel Africa Partners With SpaceX to Roll Out Starlink Across Continent, But Affordability Concerns Loom

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Airtel Africa has entered into a landmark agreement with Elon Musk’s SpaceX to deliver Starlink’s high-speed satellite internet across its 14 African markets, in a bold push to bridge the continent’s long-standing connectivity gap—especially in rural and underserved regions.

The telecoms giant announced that SpaceX’s Starlink has already secured operating licenses in nine of the 14 countries where Airtel operates, with regulatory processes still underway in the remaining five. The partnership, both companies say, will see Starlink’s low-earth orbit (LEO) satellite technology integrated into Airtel Africa’s infrastructure, extending coverage to schools, health centers, and small businesses in remote communities long left behind by traditional mobile and broadband networks.

Airtel Africa’s CEO, Sunil Taldar, described the deal as a milestone in the company’s ambition to build a digitally inclusive continent.

“Next-generation satellite connectivity will ensure that every individual, business, and community have reliable and affordable voice and data connectivity—even in the most remote parts of Africa,” Taldar said.

SpaceX, on its part, views the collaboration as a strategic advantage that gives it access to Airtel’s extensive on-ground assets across the continent, potentially fast-tracking Starlink’s operational rollout and scale in Africa.

“The team at Airtel has played a pivotal role in Africa’s telecom story, so working with them to complement our direct offering across Africa makes great sense for our business,” said Chad Gibbs, Vice President of Starlink Business Operations at SpaceX.

Celebrated Move, But Affordability is a Major Hurdle

While the partnership has been widely applauded as a potential game-changer for closing Africa’s broadband gap, many have noted that pricing remains a serious concern—especially in regions where people live on modest incomes or below the poverty line.

In Nigeria, which is Africa’s largest telecom market, the current cost of accessing Starlink services is prohibitively high for most households. The standard residential plan costs N75,000 per month (about $42), while the hardware, a kit that includes a satellite dish and router, is priced at N590,000 (around $375). Even more expensive are the roaming plans: regional roaming costs N167,000 per month, while the global roaming plan is priced at a staggering N717,000.

Given that most rural dwellers in Nigeria and across many African countries live on less than $2 a day, the concern is that the technology, while promising in reach, may remain largely inaccessible to those it purports to serve.

The Rural Internet Dilemma

Though Airtel and SpaceX have not released detailed pricing plans specific to the partnership, there is concern about whether the rollout will truly address the affordability gap or simply extend Starlink’s footprint through Airtel’s existing infrastructure.

Across Africa, rural and underserved areas have struggled for decades with poor connectivity due to the high cost of deploying mobile towers and broadband infrastructure in remote or sparsely populated zones. Satellite internet, with its ability to bypass these physical limitations, has long been touted as a viable solution.

But affordability remains a critical sticking point. According to the Alliance for Affordable Internet (A4AI), Africans pay more for internet relative to income than anywhere else in the world. A 1GB mobile data plan can consume up to 8-10% of a user’s monthly income in some African countries, far above the global affordability target of 2%.

Even with efforts by some national governments to offer subsidies or zero-rate basic services, rural connectivity has remained stubbornly low, with millions still offline due to cost barriers.

Competition May Fuel Affordability

The Airtel-SpaceX deal also comes amid intensifying competition in Africa’s connectivity space. Last year, MTN Group disclosed that it was in talks with several satellite service providers, including SpaceX, as part of its broader strategy to extend services to remote communities. The company confirmed enterprise-grade trials with Starlink were ongoing in Nigeria and Rwanda, alongside additional trials with other players like Lynk Global, AST SpaceMobile, and Eutelsat OneWeb in markets like South Africa, Ghana, and South Sudan.

This growing interest in satellite solutions underlines a significant shift in strategy among mobile network operators (MNOs), who previously viewed satellite companies as rivals. But the rising cost of traditional infrastructure deployment and the need to reach new customers in areas with poor ARPU (average revenue per user) have pushed telecom firms to embrace partnerships rather than competition.

However, the involvement of other satellite internet providers is expected to fuel competition – driving down the cost across the continent, especially in rural areas.

Trump Optimistic of $9 Trillion Investments Coming to The U.S. As Economic Indicators Points to a Potential Recession

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President Donald Trump recently claimed that $9 trillion in investments is headed to the U.S., dismissing concerns about a potential recession. This statement, reported across various platforms, reflects his confidence in the U.S. economy’s resilience despite ongoing economic uncertainties.

Trump’s assertion aligns with his administration’s narrative of attracting significant private-sector and foreign investments. For instance, earlier reports indicated that his policies had spurred commitments of $3 trillion to $7 trillion in investments, with companies like Eli Lilly, Johnson & Johnson, Toyota, and Hyundai announcing multi-billion-dollar projects in the U.S.

The $9 trillion figure was highlighted during an “Investing in America” event at the White House, where Trump showcased pledges from major corporations. However, economic data has not yet shown a corresponding increase in factory construction spending to substantiate these commitments.

Trump’s dismissal of recession fears contrasts with market volatility and economic indicators. He has described the economy as undergoing a “period of transition,” attributing any downturn to the previous administration’s policies rather than his own, such as tariffs. Recent data from the Department of Commerce indicated that the U.S. economy shrank at an annual rate of 0.3% in Q1 2025, the first contraction in three years. This was attributed to reduced government spending and surging imports as firms stockpiled goods ahead of tariffs.

The S&P 500 has experienced significant declines, losing $4 trillion to $6 trillion in value since its February 19, 2025, peak, driven by fears of Trump’s tariff policies triggering a trade war. The Nasdaq also saw a 4% drop on March 10, 2025, its worst single-day decline since September 2022. Analysts have raised concerns about a potential “Trumpcession.” Goldman Sachs increased its recession probability from 15% to 20% in March 2025, citing policy uncertainty, particularly around tariffs.

Consumer confidence dropped sharply in February 2025, with the Conference Board’s measure falling below the recession threshold. Trump’s tariffs, including 25% levies on Canada, Mexico, and China, and up to 125% on Chinese goods, have fueled inflation fears and disrupted global trade. These policies have led to retaliatory tariffs from trading partners, increasing costs for U.S. businesses and consumers.

Analyst and Investor Perspectives

Some investors initially welcomed Trump’s pro-growth agenda of tax cuts and deregulation, but uncertainty over tariffs and federal workforce cuts has dampened sentiment. Analysts note that businesses struggle to plan investments due to the unpredictable tariff timeline. Commerce Secretary Howard Lutnick has claimed there is “no chance” of a recession, while Treasury Secretary Scott Bessent acknowledged a “natural adjustment” period. These mixed messages have added to market unease.

While Trump touts trillions in pledged investments, critics argue there’s no concrete evidence of immediate economic impact. The lack of increased factory construction spending suggests these commitments may be long-term or speculative. There’s mix of enthusiasm and skepticism about Trump’s $9 trillion claim. Supporters view it as evidence of economic strength, while others question its feasibility amid market turmoil and recession risks. These posts, while not factual evidence, highlight polarized sentiment.

The $9 trillion figure is ambitious and unprecedented, dwarfing previous investment pledges under Trump’s first term or the Biden administration. Without detailed breakdowns or timelines, it’s difficult to verify. Historical data shows that announced investments often face delays or fail to materialize fully. Trump’s dismissal of recession concerns overlooks warning signs like GDP contraction, declining consumer confidence, and rising unemployment claims.

Tariffs, while intended to boost domestic manufacturing, risk inflating prices and stifling growth, as evidenced by retailer warnings and economic forecasts. Trump’s simultaneous push for lower interest rates, higher tariffs, and deregulation creates conflicting economic pressures. For example, tariffs may drive inflation, limiting the Federal Reserve’s ability to cut rates, which could hinder investment and growth.

Trump’s claim of $9 trillion in incoming investments is a bold assertion aimed at projecting economic confidence, but it lacks immediate corroboration in economic data. While his administration has secured significant investment pledges, the broader economic picture—marked by GDP contraction, market sell-offs, and tariff-induced uncertainty—suggests heightened recession risks.

Investors and analysts remain divided, with some optimistic about long-term growth and others alarmed by short-term volatility. The true impact of these investments and Trump’s policies will depend on their implementation and global economic responses.

Presidency Dismisses Adesina’s Grim Verdict That Nigerians Today Are Worse Off Than In 1960, Amid Growing Alarms Over Poverty

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AfDB president Akinwumi Adesina
Akinwumi Adesina

The Nigerian Presidency has pushed back forcefully against a statement by the President of the African Development Bank (AfDB), Dr. Akinwumi Adesina, who warned last week that Nigerians today are worse off than they were in 1960.

In a rebuttal issued by presidential spokesperson Bayo Onanuga, the government rejected both the figures and the conclusion of Adesina’s remarks, calling them misleading and inaccurate.

Adesina had told guests at the 20th-anniversary dinner of investment firm Chapel Hill Denham in Lagos that Nigeria’s GDP per capita had fallen from $1,847 in 1960 to just $824 today, suggesting that economic hardship had deepened despite the country’s population and economy growing over the decades.

But Onanuga argued that historical data do not support Adesina’s claims. He stated that in 1960, Nigeria’s GDP stood at $4.2 billion and, with a population of 44.9 million, per capita income was no more than $93. That figure, he said, only rose significantly during the oil boom years of the 1970s and peaked at $3,200 in 2014 after a GDP rebasing exercise.

The rebuttal noted that while Nigeria’s current per capita GDP hovers around $824, the metric itself does not offer a full picture of national development. Onanuga argued that GDP per capita fails to account for inequality, wealth distribution, and informal economic activities—factors that weigh heavily in a country like Nigeria, where a large share of commerce and labor exists outside official statistics.

However, Adesina is not alone in sounding the alarm. Alongside him are other voices—most notably that of Peter Obi, former Anambra State governor and 2023 presidential candidate, who has repeatedly warned that Nigeria is edging dangerously close to collapse due to poor economic management, rising debt, and unchecked poverty. Obi has also criticized what he describes as a lack of urgency and seriousness in governance, warning that leadership appears disconnected from the realities ordinary Nigerians face.

Beyond individuals, international institutions like the World Bank and the International Monetary Fund (IMF) have raised similar concerns in recent months, painting an increasingly grim picture of Nigeria’s poverty situation. Just last week, the World Bank revealed that 75.5 percent of Nigeria’s rural population now lives below the poverty line, with rural dwellers bearing the brunt of inflation, food scarcity, and declining purchasing power. In total, more than 104 million Nigerians are now believed to live in multidimensional poverty, with many unable to afford basic necessities like food, shelter, healthcare, and education.

The IMF, in its own assessment, has called on Nigeria to urgently reform its fiscal system, curb wasteful subsidies, and expand the tax net to address the country’s developmental gaps. But such advice, often regarded as tone-deaf by local critics, has sparked debate, especially at a time when citizens are already overwhelmed by high fuel prices, rising food costs, and collapsing public services.

Meanwhile, growing public sentiment reflects frustration—not just at the worsening living conditions, but also at what many see as a government more preoccupied with defending itself than with tackling poverty. That belief is underlined by the Presidency’s swift dismissal of Adesina’s comments, which is regarded as a display of a broader culture of unwillingness to confront hard truths or accept criticism from experts and institutions.

Even as Onanuga pointed to gains in infrastructure, mobile phone access, and road networks, experts note that the benefits of such development have been unevenly distributed and remain inaccessible to many rural and urban poor. The explosion of mobile telecoms, while revolutionary, has done little to shield people from the crushing weight of inflation and unemployment.

The World Bank itself has warned that unless urgent steps are taken to stimulate inclusive growth, invest in human capital, and revamp agricultural productivity, Nigeria may not meet its poverty reduction goals for decades to come.

Dr. Adesina warned that Nigeria must radically transform its economic structure if it wants to become globally competitive and industrialized by 2050. That transformation, he stressed, must include significant investment in energy, transport, education, and industry—far beyond what per capita GDP can measure.

However, the Presidency remains adamant that progress has been made. Onanuga insisted that Nigeria’s GDP today is 50 to 100 times higher than it was in 1960 and that the country has made giant strides in many sectors, even if not all are captured by a single metric. For millions of Nigerians grappling with daily hardship, the debate over numbers may seem increasingly irrelevant unless it translates into visible improvement in their standard of living.

Mastering Stock Valuation to Spot Strong Investment Opportunities

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Investing in the stock market can be a lucrative way to grow wealth over time, but it requires skill, strategy, and knowledge. One of the most critical skills for investors is mastering stock valuation. Understanding the true worth of a stock enables you to identify strong investment opportunities, avoid overpaying, and make decisions that align with your long-term financial goals. Stock valuation techniques, when applied correctly, can give you an edge in selecting stocks that are undervalued, poised for growth, or capable of delivering consistent returns.

In this article, we will explore key stock valuation methods, how to use them effectively, and how they can lead to smarter investment decisions. Additionally, we will discuss how the Alpha Spread approach enhances your ability to identify profitable investment opportunities by providing valuable insights into stock performance and potential returns.

Why Stock Valuation is Crucial for Successful Investing

Stock valuation is the process of determining the intrinsic value of a stock. It involves assessing a company’s financial health, growth potential, and market conditions to estimate what the stock is truly worth. Accurately valuing stocks allows investors to make informed decisions based on data and avoid common pitfalls, such as overpaying for a stock or chasing fleeting market trends.

When used correctly, stock valuation can help investors spot opportunities that are either undervalued or set to outperform their industry peers. It helps build a solid investment strategy, ensuring that stocks chosen for a portfolio are priced appropriately in relation to their long-term growth potential.

Moreover, mastering stock valuation gives investors the ability to spot early-stage growth opportunities, which can lead to larger returns. By understanding valuation metrics and the underlying factors that drive stock prices, you can develop a strategic approach that improves your chances of success in the market.

Key Stock Valuation Techniques

To build a strong investment portfolio, it’s essential to understand the different stock valuation techniques available. Below are some of the most commonly used methods to evaluate stocks:

1. Price-to-Earnings (P/E) Ratio

The P/E ratio is one of the simplest and most widely used methods for stock valuation. It compares a company’s market price to its earnings per share (EPS). A high P/E ratio suggests that the stock is priced higher relative to its earnings, which could mean it is overvalued or that investors expect significant growth in the future. A low P/E ratio may indicate that the stock is undervalued or facing challenges.

This ratio is helpful when comparing stocks within the same industry or sector. It gives investors a quick sense of whether a stock is priced reasonably or if it has growth potential relative to its earnings.

2. Price-to-Book (P/B) Ratio

The P/B ratio compares the market price of a stock to its book value, which represents the value of a company’s assets minus liabilities. A P/B ratio below 1 can indicate that a stock is undervalued, while a higher ratio may suggest the stock is overvalued. This valuation technique is particularly useful for companies with significant tangible assets, such as those in real estate or banking.

Investors can use the P/B ratio to assess the underlying value of a company’s physical assets and determine if a stock is priced appropriately based on its book value.

3. Discounted Cash Flow (DCF) Analysis

DCF analysis is a more complex valuation method that calculates the present value of a company’s future cash flows. By estimating the future earnings of a company, adjusting for time value of money, and applying a discount rate, the DCF model helps determine the intrinsic value of a stock. If the calculated intrinsic value is higher than the current market price, the stock may be undervalued.

This technique is particularly useful for long-term investors who are looking at the future potential of a company rather than short-term market trends. DCF analysis is widely used for valuing growth stocks, companies with strong cash flow, and businesses in stable industries.

4. Dividend Discount Model (DDM)

For income-focused investors, the Dividend Discount Model (DDM) is an essential valuation tool. This method calculates the present value of all expected future dividends from a stock, offering insight into the stock’s value from a dividend perspective. The DDM is useful for evaluating mature, dividend-paying companies that generate consistent cash flow.

The model assumes that dividends will grow at a constant rate, and it calculates the stock’s value based on the sum of all future dividend payments. Investors can use the DDM to build a portfolio that generates steady income, helping to balance growth and income goals.

5. Enterprise Value-to-EBITDA (EV/EBITDA)

The EV/EBITDA ratio compares a company’s total enterprise value (EV) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). This ratio is often used to evaluate the profitability of a company relative to its overall value. A lower EV/EBITDA ratio may suggest that a stock is undervalued relative to its earnings capacity, making it a potential investment opportunity.

The EV/EBITDA ratio is especially useful when comparing companies within the same industry, as it disregards capital structure and focuses on operational efficiency. Investors seeking undervalued stocks with solid earnings potential can use this ratio as part of their overall investment strategy.

How Stock Valuation Techniques Help Build Stronger Portfolios

Investors can use stock valuation techniques to select a mix of stocks that align with their investment goals. A well-diversified portfolio includes a combination of growth stocks, value stocks, and income-generating stocks. By applying valuation methods, investors can identify opportunities that are priced attractively based on fundamentals.

Diversification is key to portfolio construction. For example, growth-focused investors might use DCF analysis or the P/E ratio to find stocks with high growth potential. Value investors may focus on the P/B ratio to spot undervalued stocks, while income investors may use the DDM to build a dividend-focused portfolio.

By combining different stock valuation methods, investors can create a balanced portfolio that minimizes risk while maximizing potential returns. Proper stock valuation helps ensure that a portfolio remains resilient in both strong and weak market conditions, positioning investors for long-term success.

Alpha Spread and Stock Valuation

The platform, Alphaspread.com, helps investors navigate stock valuation and uncover strong investment opportunities. It offers a wealth of data, analysis tools, and insights into the performance of individual stocks, making it easier to compare and evaluate investment options.

Using Alpha Spread provides investors with an added layer of research, enabling them to apply valuation techniques more effectively. The platform’s tools allow users to compare stocks across different sectors, analyze key financial ratios, and track stock performance against market benchmarks. This makes it a valuable resource for investors looking to build a portfolio that can deliver strong, consistent returns.

Alpha Spread also provides insights into the alpha —the difference between the return of an individual stock or portfolio and the broader market index. By understanding and applying these insights, investors can enhance their investment strategies and improve their chances of outperforming the market.

Enhancing Your Investment Strategy with Stock Valuation

Mastering stock valuation allows investors to make smarter decisions and build stronger portfolios. By using a combination of valuation methods, including the P/E ratio, DCF analysis, and the DDM, investors can identify stocks with strong growth potential, solid fundamentals, and attractive valuations.

Additionally, platforms like Alpha Spread offer valuable tools to streamline the stock evaluation process and help investors track performance, identify risks, and spot opportunities. Whether you’re an experienced investor or just starting, mastering stock valuation is key to spotting the best investment opportunities and building a portfolio that delivers strong, sustainable returns.

Incorporating stock valuation techniques into your investment strategy will not only help you identify high-quality stocks but also allow you to avoid overpaying for investments. Ultimately, this leads to better decision-making and stronger investment outcomes, ensuring your financial goals are within reach.