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Paylater Hits One Million Downloads; Disbursed N6 Billion So Far in 2018

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Paylater, the fintech company which pioneered micro-lending in Nigeria, at scale, has hit one million app downloads. I wrote about this company and called it a brilliant business. With this growth rate, Paylater could be the largest “Nigerian bank” with no bank license by 2025. It will eclipse three banks in customer base possibly by the end of 2019.

That is why Paylater is exciting. Owned by One Finance & Investments Ltd,Paylater is going after that market where the highest pain points are found in the Nigerian banking sector. We can surely live without shopping through the modern digital payments. But we know that it is challenging when there is an urgent need for funds and no friend or family can help. That is what happens across Nigerian families today. Challenges go beyond how to move money fast across digital channels. Simply, we want credits. Paylater focuses on short-term loans, mainly for emergencies.

The mobile app provides Nigerian consumers with access to credit. And it does its entire works completely digitally, without seeing or speaking to customers. Call it AI or analytics, it is a leap ahead.

From an email sent to Tekedia, the company has disbursed N6 billion in 2018 alone.

In Nigeria, a country of nearly 200 million people, 61% of the adult population is un- or underbanked. Fintech companies like Paylater represent a tremendous opportunity to get formal banking services in the hands of Nigerian consumers to provide much needed liquidity for entrepreneurial investment, personal development, or unexpected expenses.

Consumer credit is nearly non-existent in Nigeria. But, Paylater is issuing loans to Nigerians completely digitally, without seeing or speaking to customers. Customers can receive funds in their account in as little as 5 minutes, with no need for paperwork, collateral or guarantors. Digital financial services platforms have been well received by consumers and it appears that fintech platforms like Paylater are here to stay.

The evidence is in the numbers. With over 800,000 registered users, across every Nigerian state, Paylater has loaned over $17M USD to Nigerian consumers in 2018 so far. The technology platform has supplemented that loan growth with very strong early adoption of its bill payments  and investments features as well.

“We are very excited by the market adoption of Paylater and we believe there is still a significant growth opportunity ahead for digital financial services” – Co-founder and CEO Chijioke Dozie

Before Paylater, only commercial banks?—?with physical branches nationwide and extremely large capital bases?—?had the reach, stability and customer trust to offer financial services to a variety of people. Unfortunately, these same institutions turned record profits by taking deposits from average consumers, and reserving actual ‘banking’ services like loans and investments for large corporate entities and high-net worth individuals.

Access to credit is a fundamental human need and the foundation on which most modern economies are built. Pioneers like Paylater have embraced the difficult task of unlocking the power of financial access for the underserved, and so far, it looks like they are winning.

[Apply] African Master’s in Machine Intelligence with Google and Facebook

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AIMS

The African Institute for Mathematical Sciences (AIMS) has announced the launch of a one-year intensive African Master’s in Machine Intelligence (AMMI) in partnership with Facebook and Google. The master’s will begin this September at the AIMS-Rwanda campus in Kigali.

“Machine Intelligence (MI) is revolutionizing critical aspects of our lives. It enhances medical diagnosis, improves industrial processes and enables scientific discoveries. Over the past decade, thanks to large public and private investments, MI has progressed rapidly in both basic research and the development of a vast array of applications. However, the talent pool currently advancing MI is modest and unrepresentative of the diversity of our world, leaving us less capable of facing global challenges. The challenges we choose to work on are strongly influenced by our backgrounds and our environment. Our goal with AMMI is to train a generation of young scientists who will bring a fresh perspective to machine intelligence research and contribute to advancing its development across Africa, for the benefit of its society” said Dr. Mouhamadou Moustapha Cissé, Founder and Director of the AMMI program and Professor of Machine Learning at AIMS.

AIMS, together with its partners, believes creating an effective, globally connected community of Machine Intelligence practitioners in Africa will reduce the technology gap, strengthen Africa’s economies and enable better governance.

Commenting on the partnership, Jerome Pesenti, VP of Artificial Intelligence said: “We’re proud to be partnering with AIMS and Google to launch the African Master’s in Machine Intelligence programme. At Facebook our goal is to drive positive social and economic impact across Africa, and this partnership is another step-in driving innovation by supporting the continent’s already exciting tech ecosystem and talent pool. We’re excited to see how students will utilise advanced technologies to solve problems and build solutions for the future of Africa and the rest of the world. We look forward to seeing them contribute to the growing ecosystem of African machine intelligence scientists and bring a fresh perspective on the challenges tackled by the scientific community.”

Jeff Dean, Lead of AI at Google said “The field of machine intelligence is advancing rapidly, and it’s imperative that industry leaders including Google and Facebook, continue to partner with academic institutions like AIMS to develop the next generation of students who will build MI that benefits everyone. We look forward to working with AIMS to drive this effort through the AMMI program. Along with our recent announcement of a Google AI center, scheduled to open later this year in Ghana, this partnership with AIMS is another example of our long term investment and commitment to Africa.”

The AMMI program will provide brilliant young Africans with state-of-the-art training in machine learning and its applications. Every course on AMMI will be lectured by leading experts from prestigious African and international institutions, providing the AMMI students the best possible foundation.

Links to apply here

DISCOs’ Threats To Exit Nigeria’s Energy Distribution Sector

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privatize power Nigeria
Mr. B. Fashola, Nigeria's minister supervising electricity sector

It is a season of decamping and reconnecting: it is all politics. Yes, it is possible right now that Nigeria is on auto-pilot at state and federal levels as politicians work days and nights to retain their jobs. Unfortunately, numbers cannot like: this is how we are growing, using GDP growth figures.

2010: 11.3%

2011: 4.9%

2012: 4.3%

2013: 5.4%

2014: 6.3%

2015: 2.7%

2016: -1.6%

2017: 0.8%

And if you consider that our power sector is moving into a terrible territory, you would be concerned. Things have gotten so bad that DISCOs are ready to exit the energy distribution sector.

The disagreement between the Federal Government and power distribution companies continued on Tuesday, with the Discos threatening to quit the sector and expressed willingness to resell the power assets at discounted rates.

[…]

Speaking at a press conference in Abuja on Tuesday, the investor in Jos Electricity Distribution Company Plc, Tukur Modibbo, stated that the power firms were doing their best but were willing to resell the companies at discounts to whosoever was interested in them.

He said, “You asked me whether we are willing to quit the business. Now, please listen to me and put it down clearly that we bought our distribution company cash down for $82m in 2013; we are willing to take $72m in 24 hours and leave.

“If you have $72m or Fashola can give us $72m, we are giving him $10m discount; if we get that sum, in 24 hours we are out of this business. Please, is there anybody with $72m here? If there is none, please advertise it for me because I’ve given you the price.”

Modibbo advised the minister to call for a meeting of stakeholders in order to avoid a further deterioration of the sector.

This threat from the DISCOs goes back to my old statement: the problem is the government, past and current. Yes, there is something fundamentally wrong that no one wants to do business in Nigeria’s electricity sector despite the obvious latent opportunities. If the opportunities are there, and people are not jumping to make money tapping them, then you have a policy problem. It is irrelevant if you are shouting for investors to come. Great policies are visible because everyone wants to jump in and make money. But making that money comes with fixing market frictions. In our electricity sector, people are not interested to invest because they see no path to profitability. It is a paralysis that government must fix.

Unfortunately, the problem with Nigeria’s electricity is the government. There is no sector in Nigeria where everyone knows that money can be made than in the electricity sector. Yet, it is also the one where people are not investing. The implication is that we have a misalignment between market needs and investment risks. Everyone understands the real need in the market for electricity. Yet, few are running to invest. No matter how you see it, the problem is not with the investors. The problem is with the government because the right policy is not available to stimulate the animal spirit of capitalism.

This is certainly broken; the distribution companies are doing far better compared with the transmission companies. At the moment, despite the fact that generating companies can expand capacity up to 24,000 MW, a limitation is imposed on the transmission system at about 7,000 MW.  For the DISCOs, they are not close to distributing that capacity and they have no clear incentive to expand because doing so is simply losing money. It is in Nigeria where DISCOs will reject power because selling will be making losses. When you look at it, you will agree with them: they are demanding for reflective tariff, and if we expect them to remain in business, the nation has to carefully examine their points.

Finally, DISCOs have to also ensure they have done their parts. The nation is overdue for smart metering, estimated billing must be discontinued immediately.

NIS – We Want To Partner

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NIS

Dear Sir,

I am writing from Zenvus. We appreciate all the comments about Zenvus Boundary technology. We want to explore if you can help us reach out to NIS. Our proposal is to offer Zenvus Boundary as an additional digital value to the typical outputs licensed surveyors deliver to customers. We do believe that this will add value to NIS customers if you provide them a digital map besides the paper output. This digital map opens opportunities to all kinds of things.

Zenvus Boundary has a property search engine which provides a public record of any property it has ever mapped. This makes it possible that no one can clone the outputs. Each output comes with a unique code which the user can give to partners to search and verify the ownership (at least as stated on the survey). This has made it possible that financial institutions can independently validate our outputs.

If you plan to use your survey to apply for loan, government verification of property, security, etc and you need the party to check the authenticity in our records, use Zenvus Boundary public search. Use the code on your report (it begins with SB) and check it here (looks like below).

Zenvus Boundary Property Search

As we maintain, we are not a legal advisor. We are not licensed surveyors. Yet, our services offer huge value in Africa. We make integration possible at scale because our outputs are in digital forms which customers can use for different uses. If you have farm sensors to track moisture, temperature and other pertinent data, Zenvus through its digital integration makes it possible to superimpose all that data on your farmland. And we deliver all these solutions for just $20!

I am seeking an opportunity to partner with NIS and will appreciate if you can make an introduction.  We will like to speak in any conference organized by NIS or possible meet the Excos. We want to standardize what we are doing at least for farms and farmlands by working with NIS. We truly believe that this is the future of mapping. Yes, giving people besides paper surveys, digital surveys which they have control on what to do with them.

Some of our enterprise customers use Zenvus Boundary to track farmlands they have invested in Africa. Through our digital maps, the investors rely on global satellites to check how the specific farmland has changed via the vegetation. The cheap maps were produced by the farmers with our low cost solution, making this possible.

As always, we thank NIS for the services to Nigeria. We want to work with all of you to deliver digital surveys with implications for precision agriculture, farm remote monitoring, etc at scale.

Regards,

Nky Udo

Zenvus / zenvus@fasmicro.com

 

NIS – Nigerian Institution of Surveyors

-We welcome partnerships with similar institutions across Africa

What is 5G? All You Need To Know

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5G

I’ve often been asked about 5G and the key differentiation from previous generations. In this piece, I explain more about the technical requirements for 5G, from the spectrum, infrastructure to the core. I hereby apologize in advance for the technical details but this is necessary to explain 5G to those who may wish to know more about the recent developments within this field. As standards are being formulated and research is ongoing within this area, please note that there may have been changes in some of the technologies discussed in this piece. And this is only a short guide.

Every ten years, there is always a shift from previous generation onto a newer generation. In 1991, the development of GSM made voice calls to become reliable and cheaper and encouraged the widespread adoption of SMS and MMS. 1n 2001, 3G ushered in an era of data services and allowed workers access to emails from any location and this increased work productivity. 1n 2010, 4G led to the development of mobile internet and video based applications which triggered the development of many sectors like online shopping, e-banking etc. 2020 is not going to be different as it promises an era of high-speed connectivity, ubiquitous coverage and low latency, all thanks to 5G.

WHAT IS 5G?

What exactly is 5G? It’s a newer generation which presents different opportunities to different stakeholders depending on where your interests lie. To an equipment vendor like Ericsson, 5G represents a market opportunity to drum up the sales of infrastructures like small cells etc. To an academic, 5G would provide an opportunity to solve complex research problems and open up the potential for successful grant applications. To a car manufacturer, 5G simply represents the opportunity to make revenues from new offerings like connected cars. To a regulator, 5G would lead to the opportunity to make increased profits from new spectrum release and lots of debate on band issues etc. To telcos, it may represent a way to increase revenue, consider new offerings (verticals) and address the increased competition from over the top (OTTs) applications like WhatsApp etc. For the technology media, it’s an opportunity to increase subscription audience and perhaps pitch the development and deployment of 5G as a race between countries or operators.

ITU has classified 5G in terms of the three use-cases presented below:

  1. Enhanced Mobile Broadband: simply an extension of 4G and promises a speed of 10/20Gbps for either your uplink/downlink. In literal terms, as a user, you should be able to download a HD film in seconds.
  2. Ultra-Reliable and Low latency: Here, a stringent requirement of less than a milli-sec of delay is anticipated for applications like autonomous driving and remote surgery e.g. imagine a robot performing a surgery operation during an emergency, a delay could have damning consequence.
  3. Machine to Machine type Communications: allow for IoT based applications, 106 devices per km2g. smart metering, smart city, smart agriculture etc.

In order to transit from 4G to 5G, a combination of technological solutions e.g. network densification, spectral aggregation etc. have been proposed to maximize the capacity and spectrum usage respectively.

SPECTRUM

Here I explain more on the recent developments within the industry geared at providing more spectrum and increasing the efficiency of the existing spectrum for 5G applications. I also discuss the challenges associated with providing new spectrum for 5G.

The digital switchover has been able to free up spectrum; the 700MHz Band is in fact being cleared of incumbent to provide some bandwidth for 5G. Besides 700MHz, some other bands will be refarmed for 5G.

Furthermore, unlicensed spectrum (2.4GHz etc.) can support offloading from licensed bands. This is important because 5G would involve a combination of different technologies like LTE/WiFI etc. But the issue is Quality of Service cannot be guaranteed when using unlicensed spectrum. So it needs to be well planned and carefully integrated with licensed bands.

Now, the higher frequencies (30-300GHz), termed mm wave, are able to provide a large amount of bandwidth for 5G. The higher the frequency, the more data that can be transmitted. These frequencies were traditionally being used for satellites and radar applications. However, the use of these frequencies for 5G present challenges such as losses, shorter transmission range, signal blocking/absorption by objects etc. as a result of their different propagation characteristics.

Besides, at higher frequencies, the antennas become very small because of the small wavelength dimensions (from the name mm-wave) and the signals propagate very short distances, which is an issue for signal reception. Hence to maximize the signal reception, a large number of small antennas are combined within the transmitter and receiver to provide for spatial and multiplexing gain (hence the use of Massive MIMO technique which simply implies that the number of antennas is far greater than the number of data stream and requires hundreds/thousands of antennas).

To combat the propagation challenges I mentioned earlier, one method is to situate base stations closer to the users (which reduces the loss) or use techniques such as adaptive beam-forming to target the radiation towards or away from the user which also helps to mitigate interference. The downside however with citing base stations closer to the public is that it increases the public’s concern and worry of the effect of electromagnetic radiation on their health.

Now, the use of different frequency bands also mean that you need to be able to combine the carriers in different bands in a clever manner using a technique like carrier aggregation.

Previously, spectrum assignment was static and regulators simply monitor the spectrum to ensure that its’ being utilized for the right purpose. Research has shown this is inefficient and there are better ways to maximize the scarce spectrum resource. For example, the use of dynamic spectrum allocation (e.g.  Nominet Dynamic Spectrum Management) allows for the allocation of spectrum in real-time using a database which checks for the usage, location of user and the demand.

The summary here is that the spectrum needed for 5G would be realized in different bands; hence spectrum harmonization will be key here in providing the needed spectrum for 5G applications.

INFRASTRUCTURE (RADIO)

Here, I discuss the technological solutions within the radio interface to maximize the capacity.

Network Densification has been proposed to improve the spectral efficiency. It simply involves the deployment of low power nodes (pico cells, femto cells, Distributed Antennas etc.) within localized regions of high traffic demands. It’s anticipated that most traffic would originate from indoor areas, hotspots, public areas like stadium, malls etc., hence it makes sense to deploy an overlay of small cells within the macro coverage area.

The goal is to offload some of the traffic from the base stations (macro cells) to the small cells which therefore improves the frequency reuse. Of course, this requires careful network planning to balance the load and address interference challenges.

The small cells could be deployed with self – organizing network capabilities which allows the cells to sense their environment, switch off when in idle mode (reduces energy consumption), coordinate with other base stations to deal with interference challenges within the environment.

As small cells require less power and cooling and can be deployed closer to the user and within existing networks; the deployment of small cells would therefore reduce the CAPEX and OPEX incurred by operators.

Now, since the traffic bottle neck varies from network to network, offloading strategy could be between networks of the same air interface technologies (Macro/small cells) or between networks of different air interface technologies (LTE/Wi-Fi) or between mobile operator core network and public internet. These combination of technological solutions involving the use of network of different technologies or network of multiple layers of different sizes is referred to as a Heterogeneous Network (HetNet) and has been proposed for use in 5G network. Interoperability is vital here to allow these technological solutions work together.

The deployment of a HetNet to increase capacity has to be complemented with a backhaul for this to translate into an enhanced user experience. A proposed technique for backhaul in 5G involves the use of the cloud Radio Access Network (cloud RAN) architecture with Coordinated Multipoint processing (CoMP). In a cloud RAN, the signal processing from the base stations is centralized within a pool and can be visualized whilst CoMP simply involves the dynamic cooperation and coordination between multiple geographically separated base stations to improve spectral efficiency, address interference and reduce energy consumption. Wireless backhaul is also an alternative for use in 5G.

CORE NETWORK

As seen so far, the three use cases of 5G have different stringent requirements e.g. latency, bandwidth etc. It therefore becomes a challenge to support all these services within the same physical infrastructure. Another challenge for the network is that it has to be able to react to the demand of the users regardless of the geographic locations.

To address these challenges, end to end Network Slicing, has been introduced.  In 5G, the network will be sliced into multiple virtual networks to support different radio access technologies or services with different requirements. As network slices are logical arrangements, which can separated into individual entities, the slices can therefore be customized depending on the requirements of the applications. For example, an autonomous system may require low latency whereas a user downloading a video requires bandwidth. These services will be delivered on different virtual network slices and transported within the same physical infrastructure.

Now, in order to facilitate  the smooth transport of the various virtual slices within the network as well as control slices on the fly (depending on application requirements), Network Function Virtualization (NFV) has been introduced. In simple terms, it means the virtualization of network functions like routers, firewalls, evolved packed core etc. and simply represents a shift from hardware to software within the network. NFV would enable the network to become programmable, agile and dynamic and reduces the costs associated with purchasing hardware for network entities. In essence, it would allow the network to be able to react to the demand of the users, a key necessity for 5G services.

The deployment of NFV within a traditional cellular network would make control and management very difficult; hence, the introduction of Software Defined Networking (SDN), an intelligent network architecture, for use within the 5G network. This simply replaces traditional hardware with programmable software services and separates the control plane from the data plane. It allows for a simplified network management and introduces flexibility within the network. SDN allows for the dynamic reconfiguration of the network and thereby give users the perception of infinite capacity for their applications.

The softwarisation of the network has enabled the introduction of newer technologies like Mobile Edge Computing (MEC) within the network. This simply means bringing the cloud/IT services closer to the edge of the network or the users. This reduces latency, improves the quality of experience, allow for contextualized services and efficient use of resources.

In summary, the core will be developed based on a ‘Service based architecture’ due to softwarisation and virtualization. This would allow logical entities within the virtual network to communicate via protocols. The virtualization and softwarisation of the core would also allow for tools like Artificial Intelligence (AI), Machine Learning (ML) and Data Analytics to be used for other capabilities within the network.

OTHER TECHNOLOGIES AND DEVELOPMENT

Other Technologies: There are of course other technologies e.g. Satellites which may have not been mentioned previously but have a key role to play in the deployment of 5G. For example, Satellites could be used for backhaul, offload traffic from base stations, deliver broadband services in underserved areas or emergency regions and for can be used in safety services. The integration of terrestrial and satellites domains within the 5G network is all due to Virtualization.

Waveforms and Access technologies; New waveforms and Access technologies e.g. Non-Orthogonal Multiple Access (NOMA), Sparse Code Multiple Access (SCMA), Quadrature Amplitude Modulation Filter-Band Multi-Carrier (QAM-FBMC) etc. are being researched for use in 5G.

Security and Privacy: The virtualization of the network raises complex issues for critical services and security. The heterogeneous nature of the 5G network mean that each layer of the network could be owned and operated by different operators, therefore privacy concerns become an issue. Interoperability is key for the deployment of 5G and raises important questions on ethics, security and privacy concerns.

Green Initiatives: It is anticipated that Green Communication technologies would be implemented within the 5G network to reduce energy consumption and improve energy efficiency.

Conclusion

5G represents a shift from consumer technologies to industrial technologies as it promises to lead to the development of a highly automated and intelligent environment which would revolutionalise many industries, including automotive, transportation, supply chain, manufacturing, energy and utility services, retail, agriculture, health, education, etc. For this to happen, 5G networks must be able to provide diversified services, support accesses of multiple standards and coordinates multi-connectivity technologies. This has resulted in the virtualization and softwarization of the network to facilitate interoperability and encourage a seamless operation among different technologies. The core is the heart of the 5G network, developed using a service based architecture, which has therefore triggered the development of new business models e.g. Network as a Service and market opportunities which would no doubt justify the investment in 5G. There are however risks and issues that need to be addressed e.g. Spectrum harmonization, Interoperability, security and privacy.