Kuzu zangpo la,
Victoria from Techpoint here,
Here's what I've got for you today:
- 9mobile's $3 billion recovery plan
- China's EVs could spark SA with new tax break
- Uganda finally rolls out digital licence plates today
9mobile's $3 billion recovery plan
9mobile is gearing up for a major comeback and has big plans to turn things around in the next four years. Once a major player with over 13 million subscribers, the company has hit a rough patch, now down to just 3.4 million users and holding only 2.15% of the market.
To fix this, 9mobile brought in a new CEO, Obafemi Banigbe, in July 2024. Banigbe, a seasoned telecom expert with experience across Africa, has been handed the tough job of getting 9mobile back on track. He’s confident but realistic about the challenges ahead.
Per The Guardian, the company’s recovery plan is ambitious: invest $3 billion to improve their 2G, 3G, and 4G coverage and compete head-on with other telecom giants in the next 4 years. But raising that kind of money isn’t easy, especially with Nigeria’s high-interest rates making borrowing expensive.
So, 9mobile is being smart about it. Their new mantra is simple: “Build infrastructure where we must and share it where we can.” This means only spending big on essentials and teaming up with others where possible to save costs.
Banigbe also flagged a broader issue in the telecom industry — revenues are growing, but costs are growing even faster. This imbalance makes long-term sustainability tricky, especially if companies keep relying on borrowing. And with 9mobile already facing financial struggles, it’s a bit of a risky situation.
In short, 9mobile is fighting to regain its position in Nigeria’s competitive telecom market. With Banigbe at the helm, their strategy is clear: smart spending, better partnerships, and a focus on staying sustainable. Whether they can pull it off remains to be seen, but they’re setting the stage for a big 2025.
Give it a try, you can unsubscribe anytime. Privacy Policy.
China's EVs could spark in SA with tax break
South Africa has recently passed a new law offering tax breaks for producing electric and hydrogen-powered vehicles. This move is part of the country’s plan to stay relevant in the global car market, especially as traditional gas-powered cars face stricter rules in places like the European Union.
Here’s the deal: The law, signed by President Cyril Ramaphosa, allows companies investing in electric and hydrogen car production to get a 150% tax deduction. This makes South Africa a more appealing place for automakers to set up shop.
Per Bloomberg, Mikel Mabasa, CEO of the Automotive Business Council, said three Chinese car manufacturers are already in talks (under wraps for now) about bringing their business to South Africa.
Why does this matter? Well, Chinese brands like Chery and Great Wall Motors are already shaking up the market, challenging big names like Toyota and Volkswagen. And with China’s government encouraging its automakers to invest in South Africa, there’s a real chance for the country to attract new players.
But it’s not just about welcoming Chinese carmakers. South Africa’s car manufacturing industry — one of the bright spots in its economy — is under pressure. The EU, a key export market, is phasing out petrol and diesel cars, so South Africa needs to adapt fast or risk losing its edge.
While Ford and BMW are dabbling in hybrid cars locally, no one’s announced plans to produce fully electric vehicles (EVs) in South Africa yet. Some automakers, like Volkswagen and Isuzu, don’t see it happening anytime soon. Others, like Stellantis (the parent company of brands like Peugeot and Jeep), say they’ll get on board once the business environment improves.
And it’s not just about tax breaks. Mike Whitfield, head of Stellantis in sub-Saharan Africa, points out that South Africa needs to invest in charging stations, tap into its rich mineral resources (like manganese, nickel, and platinum used in EV batteries), and lower the steep taxes on electric cars.
Here’s a kicker: electric cars in South Africa are hit with outdated import taxes and a luxury car tax (the “ad valorem tax”) that hasn’t been adjusted in ages. These high levies make EVs pricier than they should be. Mabasa says it’s time to either lower these taxes to match inflation or scrap them altogether.
Uganda finally rolls out digital licence plates
Uganda is finally rolling out digital licence plates for all vehicles — a move that’s been cooking since 2021. It’s taken a while to get here, with deadlines being pushed back and a few bumps along the way, but the government says it’s go-time as of today, January 6, 2025.
Here’s the backstory: This whole digital plates idea started in 2021 when President Yoweri Museveni suggested it as a way to track criminals using vehicles. But things stalled. First, there were logistical hiccups and delays in spreading the word.
Then, in 2024, the timeline got messy again. The project, which was supposed to kick off in February 2024, was postponed because people weren’t quite ready.
By August, boda boda riders (motorcycle taxis) in Kampala were threatening protests over the plan. Add to that sanctions on Russia (affecting the company behind the project, Joint Stock Company Global Security), and it’s no wonder everything kept getting delayed.
Now, it’s finally happening. President Museveni has been clear: these digital plates are a must for cracking down on crime and boosting security. He’s also told officials to stop dragging their feet.
Of course, not everyone’s thrilled. Some people are worried about privacy and how their data will be used. The government says there’s no need to stress — they promise the system is all about improving road safety and managing traffic, and any data collected will be handled according to the law.
If you’re a vehicle owner, you’ve got a 30-day grace period to switch to the new plates. The government’s urging everyone to get on board quickly to avoid any last-minute chaos and help make Uganda’s roads safer and more secure.
In case you missed them
- Nigeria unveils credit guarantee firm to boost financial inclusion
- Techpoint Africa is 10: A decade of shaping Africa's tech narrative
What I'm watching
- Money’s Mostly Digital, So Why Is Moving It So Hard?
- Do you really need to take 10,000 steps a day? - Shannon Odell
Opportunities
- Moniepoint is hiring for several roles. Apply here.
- Celebrate the New Year with delightful stories like Smart Couples. Call 421 on your Airtel line now — you won't be charged! Alternatively, call 07080601391 at your network's regular rate. Learn more here.
- Follow Techpoint Africa's WhatsApp channel to stay on top of the latest trends and news in the African tech space here.
Have a productive week!
Victoria Fakiya for Techpoint Africa.
