The African tech space continues to thrive with dynamic changes and developments, as highlighted in the latest episode of the Techpoint Africa Podcast. Hosted by Oluwanifemi Kolawole, the episode features in-depth discussions with Mojola Ola, CEO of Grid Crux Energy Solutions, and Emmanuel Paul, as they dissect some of the most prominent tech stories from the week.
MTN Nigeria’s Foray into Energy Production
The conversation kicks off with a significant move by MTN Nigeria, which recently received authorization from the Nigerian Electricity Regulatory Commission (NERC) to generate 15.94 megawatts (MW) of electricity through four captive power plants located in Lagos State. This development comes as part of a broader strategy by MTN to enhance its operational efficiency and reduce reliance on Nigeria’s often unreliable national grid.
MTN’s foray into electricity generation is not an isolated case; other companies such as Havenhill Synergy and Golden Penny Power Limited have also received similar permits. These licences are issued under Section 165(1)(m) of the Electricity Act 2023, empowering NERC to grant mini-grid concessions to renewable energy companies, thereby allowing them to provide power to specific areas and fulfill obligations to local customers.
MTN’s Financial Performance: A Cause for Concern?
The podcast also touches on MTN Group’s recent financial performance, which has seen a downturn for the first time since 2016. While the reasons behind this decline are complex, it raises questions about the sustainability of the group’s expansive operations and whether the recent investment in energy generation could be a strategic pivot to offset financial challenges.
Starlink’s Strategic Ground Stations in Nigeria
The discussion then shifts to another significant development in Nigeria’s tech space: Elon Musk’s Starlink establishing ground stations in Lagos, Ogun, and Rivers State. This move is part of Starlink’s broader strategy to improve internet connectivity in Nigeria, following its entry into the market in 2022. Starlink, which operates under an Internet Service Provider (ISP) licence from the Nigerian Communications Commission (NCC), is now positioning itself as a key player in the Nigerian telecom sector.
The project to set up these ground stations is being executed in partnership with Equinix, a global leader in data center solutions. This collaboration is expected to bolster SpaceX’s presence in Nigeria, providing a more robust infrastructure for the transmission of international voice, data, and other telecommunication services.
The Broader Implications
These developments highlight the rapidly evolving landscape of African tech, where companies are not only pushing boundaries in their core industries but also venturing into new territories to create synergies that enhance their overall value proposition. Whether it’s MTN’s diversification into power generation or Starlink’s efforts to solidify its position in Nigeria’s telecom sector, these moves are setting the stage for a more interconnected and efficient tech ecosystem across the continent.
As the African tech space continues to buzz with activity, stakeholders and observers alike will be watching closely to see how these strategies play out in the long term. For now, it is clear that companies like MTN and Starlink are not just reacting to the present but are actively shaping the future of technology in Africa.