It will complicate the sale of Bamburi after Holcim, a Swiss construction materials manufacturer and its largest shareholder, approved an offer from Amsons Group on July 27. Holcim agreed to sell its 58.6% stake and is awaiting regulatory approval from the Competition Authority of Kenya (CAK) and the Capital Markets Authority (CMA).

If Savannah Clinker’s offer is approved by Bamburi’s board and the regulators, it will be one of the largest deals in the history of the Nairobi Securities Exchange (NSE). Savannah Clinker is owned by Benson Ndeta, a director of Savannah Cement, which entered administration in July 2023.

“Savannah Clinker Limited notifies the public that it has on 27th August 2024 served Bamburi Cement PLC with a notice of intention to acquire up to 100% of the ordinary shares of Bamburi,” the company said.

“The competing offer is in response to a proposed offer by Amsons Industries, of which notice of intention to make a take-over offer was issued on 10th July 2024.”

The company said Ndeta is “in the process of exiting as a director of Savannah Cement,” which has been rocked by boardroom wars and legal woes over billions of shillings owed to banks and suppliers.

Unlike Amsons Group, Savannah Clinker may not delist the company from the NSE.

“The competing offeror does not intend to de-list Bamburi from the NSE. However, should the competing offeror achieve acceptances of 90% or more of the offer share, the competing offeror shall in accordance with the take-over regulations, offer the remaining shareholders a consideration that is equal to the prevailing market price,” the company said.

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“These changes are crucial as Twiga accelerates towards profitability and continues its mission of revolutionising food distribution in Africa through innovative digital solutions,” the company said in a statement confirming the layoffs.

Twiga Foods will also open 25 new roles in the growth and innovation departments.

In a dramatic year for Twiga, cloud provider Incentro dragged it to court in 2024 for failing to pay a $261,000 cloud bill. It provided a glimpse into the startup’s struggles to pay vendors and staff, exposing cash flow issues. In March, founder and CEO Peter Njonjo left the business after it secured new funding, prompting speculation that he may have been pushed out. 

Njonjo was replaced by Charles Ballard, an ex-Jumia executive, in May 2024. 

“These adjustments will allow us to improve our service offering and lay a stronger foundation for sustainable growth in the years to come,” said Ballard.

In November 2023, Twiga raised $35 million in convertible bonds from new and existing investors like Creadev and Juven. Njonjo invested $1 million of his personal funds in that round. 

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“Uber has made these pricing updates to ensure that drivers continue to have the opportunity to maximise their earnings while driving on the Uber app and at the same time, remaining at an affordable price point for riders,” Imran Manji, Uber head of East Africa, said in a statement.

On July 16, the drivers went on strike to force the apps to increase the minimum prices to $2.33 (KES300). They also wanted the companies to review their guidelines on suspending and deactivating accounts in disciplinary cases.

When that did not happen, the drivers resorted to charging their rates and taking rides offline. 

The sector union representatives who spoke to TechCabal said the raise was “insignificant.” They said the new prices still cannot cover high operational costs. 

“We don’t really feel it. We made our demands clear that we want at least KES300 as the base fare among other demands,” Zakaria Mwangi, the Secretary General of Ridehail Transport Association (RTA) told TechCabal.

“They’ve not gotten to 10% of our demands. We will be back at it again.”

Uber said it will increase investment in customer promotions to keep its rides affordable. Gig drivers have maintained that the rates charged by app companies do not reflect the rising cost of operations.

The company said it has introduced cash bonuses for partner drivers and is currently entering partnerships with vehicle maintenance companies to help operators cut costs.

Other companies including Bolt, Faras and Yego are yet to adjust their prices, following a meeting between the apps and the drivers on August 13.

The company is eyeing its first full-year profit in over a decade next year. 

“It goes to show what we can do as an airline. There is still room for improvement, and the board is happy with these results,” Michael Joseph, Kenya Airways chairman, said at an earnings call on Monday.

KQ’s total income rose 22% to $709.8 million (KES91.49 billion). Its operating costs dropped by 22% to $699.8 million (KES90.20 billion).

Allan Kilavuka, the airline’s group managing director, said that KQ is looking to break even by the end of 2024.   

“We are not there yet, but this is a significant milestone that indicates our intention to continue transforming this organisation to a fully stable and sustainable airline so this is something we want to celebrate,” Kilavuka said.

The carrier, which the government holds a 48% stake in, was insolvent in 2018 after years of expansion left it with huge dollar-denominated debts. 

“On August 14, Mobius accepted a bid for the acquisition of 100% of its shares by an undisclosed buyer. Both parties are looking to close the transaction within 30 days,” said Nicolas Guibert, a Mobius director, in a notice.

Following the offer, Mobius has postponed a meeting with its creditors, which is scheduled for Thursday, to allow acquisition negotiations to proceed.

The interested buyer may be looking to use the company’s assembly plant in Nairobi to produce their models or continue with the Mobius cars, which target SMEs in infrastructure, agribusiness, and supplies operating in remote areas.

On August 9, Business Daily reported that two dealers were considering acquiring the cash-strapped car maker with the prospect of rescuing the brand.

This came after Hassan Abubakar, Permanent Secretary for Trade and Industry, said he and the Kenya Association of Manufacturers (KAM) visited the company’s plant to discuss a possible rescue plan.

Mobius boasts an expansive production facility capable of fabricating vehicle frames, anti-corrosion treatment, general assembly, painting, quality testing, and final inspection. The facility also houses a research and development unit.

The company has a distributorship agreement with Chinese automaker BAIC, which was instrumental in the launch of Mobius III, an advanced version of its earlier models, Mobius I and Mobius II.

Founded in 2009 by British national Joel Jackson while working in Kenya, Mobius pioneered a stripped-down SUV model “built for African roads” in 2014. The first model cost $10,000 (KES 1.3 million), significantly lower than the market prices of standard SUVs in Kenya. The Mobius III was retailing at $43,000, compared to imported and locally assembled Toyota Land Cruiser Prados, Land Rover Defenders, and Jeep Wranglers, which cost more than $65,000.

“We, as Nairobi online drivers, wish to notify the public that due to the high cost of living, we will not be able to operate under the current rates of Uber, Faras, and Bolt,” read a sign on the headrest of a driver’s seat.

The sign outlines new fares drivers say are fair if they’re to stay in business. They hope this action will prompt ride-hailing companies to review prices, starting with increasing the minimum fare from $1.40 (KES180) to $2.33 (KES300).

“When the minimum fare is KES300, our calculation is a litre of fuel plus an additional $0.78 (KES100) for the driver, airtime, and maintenance. For trips over KES300, which covers more than 3km, it would only be fair for a driver to multiply the app’s fare by 1.5,” said Dennis Nyariki, deputy chairman of the Organisation of Online Drivers Kenya (OOD).

Drivers have set airport and railway station pickup and drop-off fares between $7.75 (KES1,000) and $38.76 (KES5,000), making them more expensive than a train ticket from Nairobi to Mombasa, and nearly half the price of a flight to the coastal city.

Nyariki said that an analysis by AA Kenya, a mobility solutions company, found that if maintenance costs are included, the apps should charge at least $0.26 (KES33) per kilometre.

The drivers are pushing for fare hikes to increase their earnings, driven in part by a rise in the cost of living. However, ride-hailing apps are keen to retain price-sensitive customers by maintaining affordable fares.

Job cuts and pay rise freezes in both the public and private sectors, coupled with high inflation, have forced businesses and households to cut discretionary spending, likely reducing the number of rides taken for leisure activities like visiting friends or family.

The apps are under increasing pressure as customers report harassment and, in some cases, assault when they refuse to pay the unofficial rates. The companies have agreed to meet with drivers’ associations to address their grievances.

“We understand and empathise with the concerns raised by drivers. However, we are aware that some have taken independent actions to increase prices, leading to inconsistent charges for customers. We wish to discourage drivers from increasing fares off the app until this industry matter is resolved,” Bolt said in an emailed statement to TechCabal.

Bolt added that they are working on a solution that will balance the “economic needs” of their drivers with affordability and quality service for customers. Industry players are expected to meet with drivers’ unions for negotiations mediated by the Ministry of Transport and the National Transport and Safety Authority (NTSA).

“Requesting additional payment over and above what is displayed on the app violates our Community Guidelines. Should this be found to have taken place, actions may range from the driver’s account being put on hold to potentially being denied further access to the app,” Uber told TechCabal.

Previous meetings of this nature have yielded little result, making drivers’ strikes an annual occurrence. While pricing remains a top agenda item in the negotiations, the drivers also seek a role in determining and reviewing trip fares.

Should the meeting fail to resolve the dispute, the unions say they will continue charging their rates. It feels like a cruel twist that ride-hailing apps, once willing to do anything to woo drivers, may consider kicking them out.

While a significant portion of those losses is unrealised and linked to naira devaluation, skittish investors have reacted negatively, sending share price tumbling and wiping out $6 billion in market value.

$IHS closed at $2.98 on July 14, 2024($992.5 million market value) continuing a downward trend that has persisted since its listing at $21 per share in 2021. In 2023, its second full year on the NYSE, the share price fell below $4.5.

IHS Towers did not respond to a request for comments.

The company’s attractiveness to investors depends on macroeconomic conditions in Nigeria, its primary market. IHS Towers is Africa’s largest infrastructure company with over 40,000 towers across 10 countries and three regions. Nigeria, where it counts MTN Nigeria–which owns a 26% stake in the tower company—and Airtel as clients, accounts for half of its revenue.

Headline inflation in Nigeria is at an 18-year high and unstable FX prices have increased operational costs. IHS spent $88.8 million to power its towers across all its markets in Q1 2024; power is the company’s largest operating cost.

“Every base station you see in Nigeria is powered 24 hours a day by diesel generators,” said a telecom expert who asked not to be named. 

The average retail price of diesel in Nigeria rose from ₦840.81 per litre in March 2023 to ₦1,341.16 per litre in March 2024. According to a 2023 sustainability report, IHS began moving to solar and grid electricity, saving $20.2 million in power costs and maintenance.

“As of December 31, 2023, in our African markets (excluding South Africa), 48% of our sites were powered with hybrid power systems (a combination of diesel generators with solar and/or battery systems), 12% with only generators and 32% with grid connectivity and back-up generators,” the company said in a corporate filing. 

Sam Darwish, the chairman and CEO said in a June 2024 Annual General Meeting that the company achieved commercial growth after renewing contracts with MTN and Airtel. 

“With MTN Rwanda MLA just signed, we have now completed all contact renewals and extensions with MTN outside Nigeria covering the five countries of Cameroon, Côte d’Ivoire, Zambia, Rwanda, and South Africa—a total of over 12,200 tenancies renewed or extended into the next decade,” Darwish said.

However, shareholders want to see more revenue growth and lower operating costs, which may point to another problem for IHS: many of its shareholders have no patience with the complexity of the tower business.

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The acquisition could see the local cement manufacturer delist from the Nairobi Securities Exchange (NSE).

On Wednesday, the Tanzanian firm launched a take-over bid through its Kenyan subsidiary Amsons Industries (K) Ltd, offering shareholders $0.51 (KES65) per share. Amsons’ bid will offer the cement manufacturer’s shareholders a 44.44% premium on the share closing price on Wednesday.

“The proposed investment will not only cement a Tanzanian company’s place as one of East Africa’s largest takeover deals but also promises substantial growth potential for Kenya through foreign direct investment,” Amsons said in a statement.

Bamburi is the largest cement maker in Kenya, controlling about 30% market share. Edha Nahdi,  Amsons managing director, said the acquisition is part of the company’s plans to expand into East Africa’s largest economy.

“We have great plans to deepen our investment in Kenya and Bamburi. It is part of our market expansion plan and will mark the formal entry into the Kenyan market. We plan to invest in other industries in the coming months,” said Edha Nahdi, Amsons managing director.

Founded in 2006, Tanzania’s Amsons has interests in cement, real estate, oil and gas, and wheat flour across Malawi, Zambia, Mozambique, Burundi, and the Democratic Republic of Congo. The company has an annual turnover of over $1 billion.

In November 2023, Holcim sold its 65% stake in Mbeya Cement Company, a Tanzania subsidiary, to Amsons. The latest bid could signal the Swiss firm’s divesture from the East African market which it holds two investment arms, Kencem Holding Limited and Fincem Holding Limited.

The acquisition bid comes four months after Bamburi Cement exited the Ugandan market by selling its stake in Hima Cement to Uganda’s Sarrai Group and Rwimi Holdings.

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The three additional data centres will be built in Gabon, Cote d’Ivoire, and Togo, Anthony Same, group director general of ST Digital, told TechCabal in Kigali on the sidelines of the Africa CEO Forum. The three countries are part of the seven countries in which ST Digital already provides cloud services. The data centres in Gabon and Cote d’Ivoire will be finished in 2024 while Togo will be completed in 2025. 

The company is speaking to submarine cable operators to provide interconnectivity for the four data centres. It also plans  to partner with as many operators as possible to increase the quality of the interconnectivity and also to prevent any downtime, especially from submarine cable cuts.  

“To provide local internet access, we are building ISPs in each of our data centres. You won’t suffer submarine cable cuts if you host in our data center,” Same said. 

Digital adoption in the Francophone picked up significantly from 2020 following the COVID-19 lockdown which sent many business around the world to embrace digitalisation. Aside from businesses jumping on the digital bandwagon, many companies have been created online since then. Over 300 digital financial services were launched between 2020 and 2023, according to one report. However, the quality of digital services has been affected by low digital infrastructure such as data centres. As of 2023, the entire data centres in Africa were slightly above 100 with 61 data centres located in South Africa. 

Same said his company decided to build a data centre in 2021, because of demand from private sector operators and public agencies that wanted to host their data locally. 

CAMTEL and Orange are some of the data centre operators in the country, but Same said ST Digital established itself through a “100% Africa cloud” campaign which sought to onboard businesses in Cameroon onto the cloud in an affordable way. Now it counts local banks, government and big companies in the country as clients. 

Moreover, ST Digital’s ambition is to build an ecosystem in the Francophone region where company do not just host their data, but also have access to internet and cloud infrastructure that powers their entire business operations. Same said the company it is on the final round of closing an investment to power the expansion. 

Editor’s Note: We adjusted the investment ST Digital received from UHURU as the parties are not ready to reflect the exact amount raised.

According to its financial report, eTranzact’s primary business is switching and was responsible for 95% of its 2023 revenue. Its other revenue lines are payment solution services, mobile money operations, and value-added services. 

Further breakdown of its revenue showed that it earned ₦24 billion from mobile airtime sales. Yet the company does not want to be known as an airtime collector. 

“We aggregate for the telcos because the telcos want to use trusted platforms to sell airtime. It is not a growth product. We do it because we exist. Our growth drivers are switching and merchant acquiring. The future revenue earner is our direct-to-consumer platform,” Niyi Toluwalope, the company’s managing director and CEO, said in an exclusive interview with TechCabal.

The 21-year-old payments provider has three business areas: a switching business, a merchant acquiring business and direct-to-consumer products.

eTranzact has introduced a range of products such as PocketMoni—a fintech app for consumers, Corporate Pay for streamlined salary payments, PayOutlet designed to allow merchants to collect payments from customers of banks in eTranzact’s network, SwitchIT—a transaction processing technology, and Credo—a payment gateway tailored for social commerce. 

The company claims to process 20 million transactions daily and reported ₦33 billion in revenue in 2023.

eTranzact competes with several businesses. In switching, for instance, it competes with fintechs like NIBSS, Interswitch and Unified payments. It also competes with Zone and bank-backed newcomers like Hydrogen, the payments company of Access Corporation, the holding company of Access Bank. Access Bank is eTranzact’s biggest shareholder. 

Ultimately, the company will focus on delivering value to shareholders. Last year, eTranzact’s share price was up over 171.4%, and shares were trading at ₦6.25 at the time of this report. 

Based on its success in payments, eTranzact is betting big on mobile money. The thinking is that Nigeria’s unbanked population presents a huge opportunity for market penetration. Only 61.4 million Nigerians have registered Bank Verification Numbers (BVNs) as of April 2024, according to data from the Nigeria Inter-Bank Settlement System (NIBSS).

“There is still a large number of people that use cash. When you see how transaction dynamics can change overnight then you understand that it isn’t about mobile money, it is about banking from the unbanked,” said Toluwalope.