Icasa's hammer falls on StarSat in South Africa

Hola,

Victoria and Delight here,

Here’s what we’ve got for you today:

Icasa’s hammer falls on StarSat in South Africa
Lesaka’s $95M vote for African fintech
Ghana’s AI ethics revolution begins

Icasa’s hammer falls on StarSat in South Africa

StarSat office — Source: mybroadband.co.za

StarSat, a pay-TV service, faced a major blow after South Africa’s communications regulator, Icasa, raided its headquarters and cut off their broadcasting equipment.

Two days ago, police and officials swooped in, unplugging cables and shutting down their server room. This blackout didn’t just hit South Africa; it affected viewers across other African countries, leaving subscribers with nothing but blank screens.

This raid comes after StarSat ignored multiple warnings to stop broadcasting since their licence expired in July 2023. Despite Icasa’s orders, StarSat kept its services running, arguing that shutting down abruptly would hurt everyone — from employees to shareholders and installers, not to mention their loyal subscribers.

Now, StarSat is planning to fight back legally to get its equipment and services back up and running. Their legal team is already working on it, and they’ve promised to keep everyone, including customers, in the loop as the situation unfolds.

However, frustrated subscribers aren’t holding back. Many have taken to social media, demanding refunds and venting about the lack of communication.

The root of StarSat’s problem lies in their missed licence renewal deadline — by four months. They’ve blamed financial struggles, the COVID-19 pandemic, and investment issues for the delay, but Icasa wasn’t budging.

South Africa’s laws require licence renewals to be filed six months before expiration, and StarSat missed that window.

With their services halted across the continent and legal battles looming, StarSat’s future is hanging in the balance as they fight to get back on air.

Lesaka’s $95M vote for African fintech

South Africa's Lesaka acquires payment provider Adumo — South Africa’s Lesaka acquires payment provider Adumo; Image source: TechCabal

What’s the news? Lesaka Technologies, a fintech listed on NASDAQ and the Johannesburg Stock Exchange, has wrapped up its R1.67 billion ($96 million) deal to acquire payment processing firm Adumo.

The deal involved issuing 17 million shares and a cash payout of R232.2 million ($13 million). Interestingly, the final price ended up being $10 million more than originally announced, thanks to a 27% rise in Lesaka’s share value.

Lincoln Mali, CEO of Lesaka Southern Africa, pumped about the acquisition, welcomed Adumo’s CEO, Paul Kent, who will lead Lesaka’s merchant division, which is set to grow with interest rates now easing. Dean Sparrow from Crossfin Technology Holdings has also joined Lesaka’s board as a non-executive director.

This deal, approved by Lesaka shareholders and South Africa’s Competition Commission, allows Lesaka to serve 1.7 million consumers and 120,000 merchants. They’ll now be processing R270 billion ($15.5 million) in annual transactions, with a staff of over 3,300 spread across several African countries.

Growth? Founded in 2019, Adumo specialises in PoS devices and payment solutions, serving 23,000 merchants and 240,000 consumers. Before the acquisition, they were handling over R24 billion ($1.3 billion) in transactions annually, cementing their place in the payment industry.

Plans? Despite a solid 11% revenue bump to R10.6 billion ($609 million) for the fiscal year ending in June 2024, Lesaka still posted a net loss of R326 million ($18.7 million). With Adumo now on board, Lesaka is aiming to compete with rivals like YOCO and has its eyes on more acquisitions to solidify its market position.

Ghana’s AI ethics revolution begins

What is new? The Ghanaian government has launched a new Readiness Assessment Measurement (RAM) tool to promote ethical AI adoption in the country.

The Ministry of Communications and Digitalisation, in collaboration with the United Nations Educational Scientific and Cultural Organisation (UNESCO) and the Data Protection Commission (DPC), set this scale to foster a sense of balance in national interest.

The readiness assessment scale measures the country’s preparedness in deploying AI tools across various sectors for national development.

How? RAM will help gauge the country’s identity, readiness or resistance to the change so they can make appropriate adjustments before implementing the AI tools in major economic, technological, and transformative initiatives.

Why does it matter? With the evolving economy and dispensation, AI is set to be integrated into almost every aspect of human life within the next five years.

Although the usefulness of artificial intelligence cannot be overemphasised, issues like privacy, data security, and decision-making biases have prompted the ethical use of this technology.

Ursula Owusu-Ekuful, Minister for Communications and Digitalisation, expressed concerns about the digital divide during the launch, citing the effects of the sudden adoption of AI tools on those who are unfamiliar with them.

She acknowledged the deployment of the 4G and 5G network which will help go a long way to expand digital literacy for many across the country.

What I’m watching

How Human Psychology Shapes the Idea of God | Dr. Luke Galen
Every Generation Explained in 15 Minutes

Opportunities

AltSchool Africa is offering discounts on diploma programmes! Enrol, complete the application, and pay a one-time fee of ₦20,000 ($20). Use code TECHPOINT30 for a 30% tuition discount upon passing the entrance exam 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 fun weekend!

Victoria Fakiya for Techpoint Africa.