Here are three big stories from Africa’s business and policy landscape you (probably) didn’t miss but should keep in mind this week:
Netflix is no longer number 1 in Africa
Netflix, the world’s largest paid video streaming service, is facing increasing competition in Africa, leading to a decline in its market share. The company, which once held a dominant position in the region, now finds itself trailing behind rival Showmax. According to data from tech research firm Omdia Research, Netflix’s market share in Africa has shrunk from 40% in 2021 to 35% in 2023. Meanwhile, Showmax has seen its share rise to 40%, making it the new market leader.
This shift in market dynamics is being attributed to the entry of new competitors and the increasing focus on local content production. Showmax, for instance, has invested heavily in producing African shows that resonate with local audiences. This strategy has paid off, with the company experiencing a 26% year-on-year growth in paid subscribers in the last four years. In addition to Showmax, Netflix also faces competition from Amazon Prime Video, which has been expanding its presence in Africa. The streaming giant recently launched its service in several African countries, including Nigeria and South Africa.
South Africans can withdraw crypto at ATMs
South African fintech company Paycorp has launched CryptoExpress, a new app that allows users to withdraw their cryptocurrency as cash (South African rand) at approximately 3,000 ATMs across the country. This innovative solution bridges the gap between the digital and traditional financial worlds, offering users a convenient way to access their cryptocurrency funds.
The CryptoExpress app seamlessly integrates with various cryptocurrency wallets, enabling users to withdraw their crypto holdings at Cash Express ATMs operated by ATM Solutions, a Paycorp subsidiary. Available for iOS and Android devices, the app features a handy ATM locator that helps users find nearby Cash Express machines where they can convert their Bitcoin, Ether, and stablecoins like USDC and Tether into cash. To withdraw cash, users convert their cryptocurrency through the app, authorize the transaction in their cryptocurrency wallet, and receive a withdrawal voucher PIN from CryptoExpress. With this PIN and their mobile number, users can visit any Cash Express ATM to receive their cash in South African rand.
South Africa is one of three African nations that impose taxes on cryptocurrency transactions. The country recently joined forces with 47 other nations to combat tax evasion among NFT and cryptocurrency traders. These measures reflect a growing global trend towards regulating the cryptocurrency industry and ensuring compliance with tax laws.
Nigeria Drops $1.1 Billion Claim Against Eni Over Oilfield Deal
In a significant development, Nigeria has decided to withdraw its civil claims totalling $1.1 billion against Italian energy giant Eni SpA (ENI.MI), stemming from allegations of corruption in an oilfield deal. This move brings to an end a protracted legal battle that has spanned over a decade.
Nigeria’s justice ministry revealed that it will unconditionally waive the claims before Italy’s highest court, effective no later than November 17, 2023. This decision signals a shift in the Nigerian government’s stance on the matter and opens the door for renewed collaboration between Eni and Nigerian authorities. Eni has welcomed the Nigerian government’s decision, expressing its readiness to work together to convert the prospecting license for the oilfield, known as OPL 245, into a mining license, paving the way for its development. This conversion is crucial for unlocking the field’s potential and generating economic benefits for Nigeria.
In 2021, an Italian court acquitted Eni, its chief executive, and Shell (SHEL.L) of corruption charges related to the acquisition of OPL 245. This acquittal cleared the way for the Nigerian government’s decision to drop its civil claims. The withdrawal of the civil claims marks a turning point in the relationship between Nigeria and Eni, paving the way for a more constructive and mutually beneficial partnership. This development is also expected to have positive implications for Nigeria’s oil and gas sector, fostering further investment and growth.
ICYMI: Market roundup
- Nigeria’s equities market moved downwards over a 5-day trading week, with the NGX All-Share Index appreciating by 0.37% to close at 71,112.99 points. The top gainers were Deap Capital Management and Trust Plc. (54.84%), and C & I Leasing Plc. (49.55%), Mercure Industries Plc (46.17%), Omatek Ventures Plc (35.94%), and N Nig Flour Mills Plc (32.78%). The top decliners were Japaul Gold and Ventures plc (-14.14%), Beta Glass plc (-9.92%), The Initiates plc (-9.80%), Red Star Express plc (-8.54%), and Mutual Benefits Assurance Plc (-7.69%).
- The naira closed the week at ₦ 791.75/$1 on Friday at the investor’s and Exporters’ window.
- Brent crude closed the week at $80.62 while US West Texas Intermediate (WTI) crude closed at $75.89.
- The global cryptocurrency market cap stood at $ 1.4 trillion, as of 9 p.m. Sunday, the 19th of November. Bitcoin stood at $36,964.11, a 0.36%, decrease over the week, Ethereum also decreased by 3.09% to trade at $1,985.89. And Binance coin decreased by 0.91% over the week, to trade at $245.88
- Shekel Mobility, a B2B auto dealers marketplace, raised over $7 million in seed round, comprising $3.2 million in equity and over $4 million in debt. Ventures Platform and MaC Venture Capital co-led the round.
- During the week, South African insurtech startup Pineapple raised $21.3 million in Series B funding to boost its growth. The round was led by new investors Futuregrowth, Talent10, and MIC.