Today, I spoke with the world’s finest journalism: The New York Times. Our conversation was on talent in the African technology space and how multinational and local companies are navigating the domain. Yet, while I demonstrated optimism in many areas, I could not help to make it clear that without improved public infrastructure,; most of the optimism we are experiencing today will not go far.

Lack of public infrastructures will put ceilings on the productivity gains technology will deliver in Africa across markets and sectors. Yes, you may have the best app to help farms, but without the roads, they would be unable to move produce from farms to cities. You can use drones to transport blood but without electricity, doctors cannot support rural communities. Those infrastructures are the catalysts for the economies.

Simply, the “best talent” in Africa remains investments in public infrastructures as those will make African techies become stars. Indeed, without U.S. Postal Service, Amazon might have not succeeded. Africa will need such enablers to bring out the best in our talented entrepreneurs.

Comments on LinkedIn Feed

1. There are things we simply cannot leapfrog, else we end up making caricatures of other great feats achieved. While the appropriate place to have the castles is in the air, someone must be tasked with putting the foundations on the ground; you cannot have it any other way. Food for thought!
2. You hit the nail on the head. That’s my biggest frustration with rising technology in Africa. No matter how cool AI or super apps may look, we need to fix our basic infrastructure for the common citizens to thrive before our techno-sphere can take flight. Human Intelligence must work first before Artificial Intelligence.
3. Infrastructure is difficult to build in a country where almost nobody pays taxes. Maybe privatization of everything is the answer where roads will be owned and managed by logistics companies. Utilities will be owned and managed by energy companies. It’s hard to believe that this will be a viable a solution but again it is impossible to discard the game-changing boost privatization brought to the telecommunications industry.

MTN Nigeria will be listed on the Nigerian Stock Exchange but it will not follow the typical process of initial public offer (IPO). MTN Nigeria will go via listing via Introduction, according to statements from its leaders in South Africa. This is how Listing by introduction is explained “It is a way of listing shares already in issue on another exchange. No marketing arrangement is required as the shares for which listing is sought are already widely held. The listing approval procedures for a new listing by introduction are the same as those for initial public offerings (IPO)”. The deal will happen in H1 2019, possibly Q2 since Q1 makes no sense with the election on the way.

MTN Nigeria has said it will list on the Nigerian Stock Exchange by way of introduction in the first half of this year.

The President and Chief Executive Officer of MTN Group, Mr Rob Shuter, disclosed this at the MTN Group’s investor update conference call

[…]

“It means that we will list the company in the initial phases without any public offer or sell-down or initial public offering. I think this will enable us to get the company listed whilst the market still digests the implications of what has happened over the last few months,” Shuter said.

He added, “We will in phase two be doing a project to increase the Nigerian participation in MTN Nigeria, targeting more a free float of around 35 per cent than the free float we have today which is around 20 per cent. So, we aim to conclude at least the listing by introduction in the first half of 2019, pretty much as soon as we can, and then subject to market conditions, appetite and demand we would in phase two do the sell-down.

There is nothing new here: I had expected this to happen in Q2 2019, after the election. The only surprise is the format of using listing by introduction. I had projected the value of MTN Nigeria to be $5.57 billion before the paralyses of fines and penalties which certainly have depressed the valuation before investors.

“So, for MTN Nigeria, I do think the strategists would move this IPO to Q2 2019 to happen after the election. If I am advising them, that would be the first point on slide. Going public in 2018 will cost you 15-20 percent because of the looming presidential election in Nigeria, which could depress international and Nigerian diaspora interests,” he concluded.

This is the value of MTN Nigeria

Yet – do not take this to the bank. MTN put a disclaimer in that statement “… conclude at least the listing by introduction in the first half of 2019, pretty much as soon as we can, and then subject to market conditions, appetite and demand we would in phase two do the sell-down”. Simply, they can claim anything and call it off.

Access Bank has sent invitations to its major shareholders to attend a court-ordered meeting to approve merger with Diamond Bank. On March 5th, I will vote YES for the merger since there is no alternative. Access Bank few weeks ago noted that it was merging with Diamond Bank. I want to wish Access Bank CEO, Herbert Wigwe, my 2018 Businessperson of the Year, the best of luck as he executes to create values for all stakeholders (not just us the shareholders).

Bloomberg and local news have reported that Access Bank had acquired Diamond Bank in Nigeria. It is a very painful one, personally, because Diamond Bank seeded my career. As I have written, it was the only company I ever-interviewed in Nigeria, and the only one I sought employment: other jobs had come without applications or interviews. With a category-king leading innovative spirit, Diamond Bank was a peerless institution at its peak. It pioneered Nigeria’s modern banking with the best banking product ever in Nigerian history. Yes, the Diamond Integrated Banking System (DIBS) transformed Nigeria and solved the menace of armed robbery against traders than all the contributions of Nigerian Police. Yet, the Diamond lost the sparkle

For students of finance, you can read the Scheme of Merger document sent to shareholders.

Scheme_Document

Strive Masiyiwa, the Founder of Econet, and his wife Tsitsi Masiyiwa have pledged $100 million to fund rural entrepreneurs in Zimbabwe. This is a massive moment in that African nation. This mirrors the Tony Elumelu $100 million structured for African entrepreneurs.

Some features for Strive Masiyiwa Fund: women will get minimum 50%, no collateral required, and no political lobbying for support required. In Igbo land (Nigeria), parents name their kids Adaora [daughter of all] and Nwaoha [child of all, usually males] symbolizing that a child belongs to all in the community, not just the parents.

Strive is Nwaoha of Zimbabwe: he is building Zimbabwe and he deserves our commendations.

My wife and I have decided to set up a special fund of $100m over 5 years for ReImagine Rural in Zimbabwe.

We have also challenged our friends in the philanthropy community to join us to expand it across Africa.
The fund which is our own personal money will be disbursed as loans through Steward Bank (a member of the Econet group).

The money will support projects from rural entrepreneurs or those entrepreneurs willing to focus on rural areas.

SB will set up a special team [Masiyiwa Rural Challenge Fund].

I want to use this initiative to challenge global donors to support mass entrepreneurship in Africa by putting my own money into what I believe. My wife is currently on a major drive to get this concept adopted by other philanthropists, so we can push into other African countries.

This initiative does not reduce our commitment to other areas of our philanthropy efforts including education and the $60m sanitation and water initiative in Harare.
We thank the Lord who empowers us!

Details of how the fund will work were posted on his Facebook page and we know the following:

• 25% must be set aside for an area of Zimbabwe called Matabeleland;
•  Women must get minimum 50%;
• Young people must be the focus;
• Traditional businesses like stores and grinding mills will be excluded. We want to see a new generation of businesses, to fulfil my dream of #ReImagineRural.
• Min: $1000, Max $10,000.
• No collateral;
• Maximum interest 5%;
• Repayments will go into revolving fund;
• All entrepreneurs must undergo training before loans;
• No political lobbying for support