Salam alaykum,
Victoria from Techpoint here,
Here's what I've got for you today:
- IHS Holding is considering the sale of its towers
- Regulators will save African gig workers
- Streaming giants face new costs?
IHS Holding is considering the sale of its towers
IHS Holding, the telecoms tower giant, is reportedly considering selling off its businesses in Rwanda and Zambia.
The company is looking to see if there's interest from potential buyers, with plans to use some of the proceeds to pay down its debts.
This move comes on the heels of IHS laying off 100 employees after suffering a massive $1.9 billion loss in 2023—a shocking 304% jump from the previous year.
The company, which runs over 40,000 towers across Africa, Latin America, and the Middle East, is still in the early stages of these discussions and might end up holding onto these assets for a while longer.
IHS has been hit hard by the devaluation of Nigeria’s naira, its biggest market, where the currency has dropped over 70% against the dollar since President Bola Tinubu took office in May 2023.
Despite these challenges, the company remains confident in its business strength, although its shares have plummeted more than 80% since going public in 2021.
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The company recently revealed that it needs to raise between $500 million and $1 billion to stay afloat, working with advisors like JPMorgan Chase & Co. to figure out the best path forward.
Regulators will save African gig workers
In July 2024, Kenyan ride-hailing drivers were back on the streets, protesting during a five-day strike. They’d been rallying for better rates, safer working conditions, and clearer communication from platforms like Uber and Bolt.
Despite some responses from these companies, the changes have been minimal and haven't addressed the drivers' core issues.
A few weeks ago, drivers took things a step further, defying platform policies by setting their fares, even risking suspension. The platforms, however, claimed they couldn’t do much due to tight gain margins and competition, while drivers are struggling with rising operational costs.
This ongoing back-and-forth raises questions about whether drivers' demands are reaching the right people and if real change is on the horizon.
The lack of legal protection for gig workers in Africa leaves them exposed to exploitation and unchanging terms.
For a deeper dive into the legal challenges and what might be done to protect these workers, check out Oluwanifemi’s insights on how the law is catching up with the gig economy here.
Streaming giants face new costs?
The Association of Communications and Technology (ACT) is making a case for including over-the-top (OTT) service providers like streaming and messaging platforms under the same regulations that govern telecoms in South Africa.
What’s it? ACT, which represents telcos like Vodacom, MTN, and Telkom, says that while OTT companies use their networks, they don't follow the same rules. They worry this could hurt the telecom industry’s long-term sustainability.
Why does it matter? OTT services like Netflix, YouTube, and WhatsApp need a strong network infrastructure to work well. The ACT argues that since these services use a lot of bandwidth, they should help pay for maintaining and upgrading the networks.
This idea, known as “Fair Share,” suggests that OTT providers should contribute to the cost.
This isn’t just a South African debate—it’s happening in the EU and Asia too. Critics, however, argue that consumers are already paying for the data, so why should OTT providers pay as well?
Plus, there’s a worry that making OTT players pay could hurt net neutrality and disadvantage smaller Internet providers. However, the only OTT services getting regulated in South Africa are voice-over-IP providers.
On the flip side, ACT’s CEO, Nomvuyiso Batyi, warns that without investment in network infrastructure, South Africa could fall behind, deepening the digital divide and leading to “digital poverty.”
ACT isn’t demanding a specific solution but wants to spark discussions. They suggest regulators explore new business models to find a balance for telecoms and OTT players.
In case you missed them
- African fibre company set to raise $225 million equity in 4 months
- Uber Kenya raises fares in response to drivers’ frustrations
What I'm watching
- The ENTIRE History of Human Civilizations | Ancient to Modern (4K Documentary)
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Have a terrific Thursday!
Victoria Fakiya for Techpoint Africa.
