Investors update: Nigeria’s FMCG giants’ revenues reach $2.4bn in 9 months

Nigeria’s FMCG giants’ revenues hit $2.4bn in nine months

Highlights

• Nigeria’s leading consumer goods companies earned a whopping sum of N1.059 trillion as revenue in the last nine months of the year 2022, outperforming their earnings in the corresponding period of 2021 of N811.887 billion.
• The companies’ revenues rose by 30.39% compared to the same period in 2022, per data contained in the nine months’ financial statements of these companies.
• The growth in revenue reported by these companies was driven by higher product prices and demand from consumers during the period under review.

Source: Nairametrics

Our Takeaway

The revenue growth recorded by Nigeria’s consumer goods companies is remarkable. While the sector has traditionally been one of the largest in the country, the results are impressive given the nature of the macro environment these firms have been operating in over the past year. Chief of these is economic disruptions in the global economy occasioned by the ripple effect on energy, power, and food cost, amongst others, caused by the Russia-Ukraine face-off. In addition to this is the inflationary pressure on household wallets, weakening purchasing power, supply chain constraints, lingering insecurity, and unstable trade facilitation issues.

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Pan-African Solarise Africa raises $33.4m debt funding

Highlights

• Pan-African energy leasing company Solarise Africa has raised $33.4 million in debt funding.
• Founded by Patrik Huber, Jan Albert Valk, and Sakkie van Wijk, Solarise Africa is an energy leasing company for solar and other energy assets focusing on commercial and industrial clients (C&I).
• The company, which provides smart financing via a selected group of partners, is already well-capitalized and has now secured fresh funding to help it grow. It plans to expand its portfolio in Kenya and other selected African countries. 

Source: Disrupt Africa

Our Takeaway

The significance of Solarise’s funding lies in two major points. Firstly, an increasing number of African startups are turning to debt financing after more than $700 million in debt was raised last year. And secondly, financiers, who were skeptical about funding ventures in the renewable energy space, are increasingly funding the continent’s leading solar providers. Similar companies like CrossBoundary, Sun King, Daystar Power, and Havenhill have attracted significant funding in the past year, suggesting the perception toward the renewable energy opportunity in Africa could be changing.

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MTN Zambia launches the country’s first 5G network

Highlights

• MTN Zambia has launched a 5G network, becoming the first mobile operator in Zambia to offer 5G services commercially, after successfully running trials over the past 11 months.
• The company claims its 5G services have been activated to cover about 65% of the population in the cities of Lusaka, Kitwe, and Ndola, as well as parts of Chingola, Solwezi, and Kalumbila. Together, these represent around 15% of the population.
• The introduction of 5G is part of a wider network strategy for MTN Zambia. Other programs involve the optimization and modernization of existing 3G and 4G networks.

Source: TechCabal

Our Takeaway

Zambia joins Botswana, South Africa, Nigeria, and Kenya in the exclusive group of African nations where commercial 5G services have been launched. The potential benefits of this next-generation network for the continent, such as the optimization of service delivery and end-user experience, are well-published. But adoption faces hurdles due to the high cost of 5G-enabled handsets as well as mobile data in the country. That hasn’t stopped Africa’s leading telcos from investing in the technology, however.