Zdravstvuyte,
Victoria from Techpoint here,
Here's what I've got for you today:
- PalmPay plans to enter Asia
- Eko DisCo sells 60% stake to Transgrid Enerco
- Globacom CEO steps down after one month
PalmPay plans to enter Asia
PalmPay, a Nigerian fintech company, is eyeing the big leagues in the remittance game as it preps for a 2025 expansion into Asia. Yep, they’re thinking of jumping into the cash-sending business, focusing on the Middle East and Southeast Asia.
While they’re keeping the juicy details under wraps, per Condia, Managing Director Chika Nwosu spilled some tea at a media roundtable last week. “We’re heading to the Middle East and Southeast Asia and looking at other African countries too,” he said. “We’re still in the research and planning phase, but if there’s an opportunity, we’re going for it.”
And why not? Remittances are a massive deal. According to the World Bank, global remittances to low- and middle-income countries (LMICs) hit $685 billion in 2024 — a 5.8% jump from the previous year. Asia, with its massive diaspora and booming economies, grabs half of those remittances. Countries like India, China, and Pakistan top the charts, with India alone raking in $129 billion last year.
For PalmPay, which has over 30 million users and $6 billion in monthly transactions, jumping into this market could mean more revenue and a bigger user base, adding to its already impressive 16 million monthly active users.
Plus, with African fintechs like LemFi and Nala already making waves in remittances, it’s clear the game is heating up. For fintechs looking to diversify income and dodge currency volatility, cross-border services like remittances are the way to go.
It’s a bold move, and if PalmPay pulls it off, they could be cashing in big time. Safe to say, the remittance market is becoming a must-watch for African fintechs.
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Eko DisCo sells 60% stake to Transgrid Enerco
Transgrid Enerco Limited, a team-up of North South Power (NSP), Axxela Limited, and Stanbic IBTC Infrastructure Growth Fund, has just signed a deal to grab a 60% stake in Eko Electricity Distribution Company (Eko DisCo). This makes Transgrid the majority owner of Nigeria’s second-largest power distributor.
The Share Purchase Agreement (SPA) was signed yesterday, January 21, 2025, and the deal should be wrapped up by April. Although the exact price wasn’t revealed, insiders say it’s likely over $200 million.
This move has been a year in the making, with Transgrid Enerco winning the bid to acquire Eko DisCo earlier this month. For NSP, which owns Shiroro Dam, this acquisition isn’t just about size — it’s a way to get a handle on Eko DisCo’s cash flow and operations.
While Eko DisCo has been consistent in its market remittances, many other DisCos struggle to meet payment obligations, leaving power generation companies like NSP unpaid. Owning a distribution company gives NSP a stronger grip on revenue collection and could even inspire other DisCos to step up their game.
This isn’t the first time a power-generating company is snapping up a DisCo. Back in 2023, Transcorp’s consortium (owners of Ughelli Power Plant) grabbed a 60% stake in Abuja DisCo. Similarly, Sahara Power, which owns Egbin Power Plant, holds a controlling stake in Ikeja Electric.
West Power and Gas (WPG), the current owner of Eko DisCo, will hand over the reins to Transgrid Enerco after getting the green light from regulators. WPG’s Chairman, Charles Momoh, said the new owners will tap into Nigeria’s evolving electricity market and bring in fresh capital to reposition Eko DisCo for growth.
Of course, it’s one thing to own a DisCo and another to fix Nigeria’s chronic electricity problems. Whether this acquisition leads to better power distribution remains to be seen. Meanwhile, startups offering renewable energy and mini-grid solutions continue to rise as alternatives to the unreliable grid.
Let’s see if Transgrid Enerco can deliver some much-needed light in more ways than one.
Globacom CEO steps down after one month
Ahmad Farroukh, who took over as CEO of Nigerian telecom giant Globacom in October 2024, has reportedly stepped down after just a month on the job. While Glo hasn’t officially commented yet, insiders said the quick exit has a lot to do with the company’s rigid structure.
Globacom, once a major player, has been struggling lately. In 2024, it lost over 40 million subscribers because of issues with regulatory compliance — basically, not properly registering users with their NINs. That disaster saw its market share drop to just 12%, putting it far behind competitors like MTN and Airtel.
Farroukh, a veteran exec with experience at MTN and Smile Communications, apparently couldn’t reconcile his management style with Glo’s centralised way of doing things. Founder Mike Adenuga is known for running a tight ship, keeping a strong grip on operations and blending his business interests directly with the company. This setup reportedly clashed with Farroukh’s background in more structured organisations, prompting his early departure.
Globacom’s leadership turnover is part of a broader trend in Africa’s telecom industry. For instance, MTN Group recently made big leadership changes, appointing Mitwa Ng’ambi and Wanda Matandela to lead operations in Côte d’Ivoire and Cameroon, as part of its “Ambition 2025” plan. The focus across the industry is clear: adapt or risk falling behind.
For Glo, the road ahead is tough but not impossible. They’ll need to find a new CEO who understands Nigeria’s competitive telecom market and can tackle the challenges head-on. That might also mean loosening the reins on their management structure to attract top-tier talent.
Beyond that, fixing their regulatory issues and winning back customer trust are non-negotiables if they want to regain any ground in the market. How Glo handles this situation could make or break its future in Nigeria and beyond.
In case you missed them
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- M-Pesa to integrate with PesaLink, driving growth and financial interoperability in Kenya
- South Africa’s Naked raises $38M in Series B2 to deepen its investment in automation and AI
- Investors in African startups drop to lowest numbers since 2021, says report
What I'm watching
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Opportunities
- Fast Forward Livestock Innovation Lab, in partnership with GIZ-SAIS, offers innovators the chance to turn their prototypes into commercially viable solutions for the livestock value chain, with up to ₦10 million in funding, expert mentorship, and guidance from an Entrepreneur-in-Residence. Apply here.
- The World Health Organization (WHO) is recruiting suitably qualified candidates to fill several roles. Apply here.
- Glovo is looking to fill certain roles in Nigeria, Kenya, Uganda and Morocco. Apply here.
- Kuda is looking to fill different roles. Apply here.
- Paystack is hiring for several roles. Apply here.
- Techpoint Africa is hiring a Market Research and Innovation Analyst. Apply here.
- 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.
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Have a wonderful Wednesday!
Victoria Fakiya for Techpoint Africa.