NOVEMBER 10, 2022
3 min Read
Investors update: November 10 2022
Mobile transactions in Nigeria double to $29bn in 9 months
- Nigerians carried out N12.8 trillion ($29 billion) worth of mobile transactions between January and September 2022, over double the amount recorded in the same period last year and even much more than 2020 figures.
- That’s according to data from the Nigeria Inter-Bank Settlement System (NIBSS) for 2018 to 2022. The growth represents a whopping 153% year-on-year from N5.07 trillion recorded in the comparable period of 2021.
- The total transactions for the current year represent an even higher margin when compared to 2020 (N1.89 trillion), 2019 (N461.4 billion), and 2018 (N216.4 billion).
Mobile and electronic forms of banking have been on the rise in Africa’s largest economy, particularly since the Covid-19 pandemic. In a similar fashion, the volume of mobile transactions rose by over 132% in the period under review. And an earlier NIBSS report showed that the value of transactions over Point of Sales (PoS) terminals in the country jumped to N735.6 billion in September 2022. Overall, the trend illuminates the growing digital payments landscape in Africa, which, per a GSMA report, now accounts for 70% of the world’s $1 trillion mobile money value.
FTX bankruptcy likely as Binance backs out of buying rival
- Binance, the world’s largest cryptocurrency exchange, on Wednesday backed out of its decision to purchase faltering cryptocurrency exchange FTX.
- The announcement came barely 24 hours after a deal to acquire its rival was disclosed. Earlier, Binance hinted it could still pull out of the deal depending on due diligence, a decision that has now been triggered.
- Binance said the decision to pull out of the deal was a result of corporate due diligence and information that regulators were investigating issues of mishandling of investor funds.
The Binance reversal marks another turn in the ongoing turmoil involving FTX, which multiple reports claim has a shortfall of about $8 billion and could be facing bankruptcy. Bitcoin prices fell 15% to $15.7k on Wednesday in reaction to the u-turn, as investors liquidated millions of tokens in investments. The bloodbath may just have started, with crypto prices expected to fall further before finding a base for a rebound. Beyond that, the crisis could trigger a global contagion spreading to other financial markets.
Meta partners with Paratus to build fiber networks in Zambia
- Paratus and Meta plan to invest in 900-kilometer open-access metro fiber networks in Zambia to improve high-quality connectivity in under-served communities in ten cities and towns across the country.
- Paratus Zambia will own, build, and operate the network to provide wholesale services to mobile network operators and Internet service providers.
- This first phase will bring fiber to six cities by January 2023. The second phase will connect four towns before the end of 2023.
Over the past decade, African countries working with various local and international partners have made huge strides in making the internet accessible for the continent’s 1.2 billion people. But with just 22% internet connectivity, the continent remains significantly behind other regions in the world, largely due to limited coverage of existing infrastructure. The Paratus-Meta deal thus is crucial to helping to provide millions of people and hundreds of businesses in rural Zambia with the opportunity to connect to the Internet via a faster and more secure fiber network.