Tungjatjeta,
Victoria from Techpoint here,
Here’s what I’ve got for you today:
- MTN Group’s earnings drop 69% amid currency woes
- Ridiculous questions Nigerians ask Grok
- Sycamore gets approval to operate as a fund and portfolio manager
MTN Group’s earnings drop 69% amid currency woes
MTN Group has had a tough year, with earnings plummeting by 69%. Their headline earnings per share (HEPS) dropped from 315 cents in 2023 to just 98 cents in 2024. The culprits? The devaluation of the Nigerian naira and the ongoing conflict in Sudan.
In Nigeria, a shortage of dollars forced the government to devalue the currency, causing MTN Nigeria’s pre-tax loss to soar by over 200% to ₦550.3 billion ($355.76 million). The company’s trying to recover by renegotiating tower leases and increasing tariffs, which was approved in January.
Despite the rough patches, MTN CEO Ralph Mupita remains hopeful, especially about Nigeria, where he sees signs of recovery after 18 months of struggles. In Sudan, however, the conflict took a toll on MTN, costing them R11.7 billion ($643.4 million). They’re working to restore service in conflict zones like Khartoum, where networks have been down since April 2023.
Across its 16 African markets, MTN saw a 15% dip in service revenue to R177.8 billion ($9.76 billion). However, in constant currency terms, service revenue actually grew by 14%. South Africa performed better with a modest 3.1% increase in service revenue, driven by growth in data, fintech, and enterprise services. The fintech sector, particularly Mobile Money (MoMo), had a strong year, with revenue jumping 30.3% year-on-year.
In Rwanda, MTN had a mixed year, ending with a small loss of Rwf 5.5 billion ($4.2 million) but managing a surprise gain in the final quarter. MoMo played a huge part in this turnaround, now acc0unting for nearly half of MTN Rwanda’s total service revenue. However, voice revenue took a hit, dropping 17.8%, and data services struggled due to tough competition from subsidised 4G smartphones.
In South Africa, the telecom market is getting more competitive, and MTN’s prepaid customer base barely grew, up just 0.8% year-on-year. The company raised prices in May, which led to customers cutting back on spending. On the other hand, postpaid services performed much better, with legacy voice service declines slowing down. Overall, MTN South Africa saw a 3.1% revenue increase.
Looking ahead, MTN is optimistic about South Africa’s economy stabilising, helped by lower inflation and interest rate cuts, which could boost data revenue in early 2025. They’re rolling out new offers and strengthening sales channels to improve growth from Q2 onwards. Despite the challenges, MTN is banking on fintech, data, and enterprise services to fuel future growth.
Ridiculous questions Nigerians ask Grok
Ever scrolled through the replies under a viral tweet or a short video on X and seen Nigerians tagging Grok with the most random questions? It’s hilarious. And it’s not just Nigerians doing this, but the kinds of things Nigerians ask? Pure comedy.
Since Elon Musk brought Grok to X, Nigerians have been testing its limits non-stop. Whether it’s fact-checking wild claims or analysing their X profiles, the AI has seen things. In a country where sarcasm and wit thrive, Grok isn’t just a chatbot, it’s entertainment, debate fuel, and sometimes, mischief in digital form.
One of the funniest (and most common) questions Grok gets? “Is Tinubu a good president?” Political debates dominate Nigerian X, so it’s no surprise. And Grok? No holding back. It points out that while Tinubu’s reforms aim for long-term growth, they’ve also sent inflation skyrocketing and made life harder for many Nigerians. Its rating? A solid 4 out of 10.
Grok isn’t like other chatbots. It was built to be a little rebellious and witty. Since Grok-3 launched in February 2025, Nigerians haven’t given it a break. From political hot takes to straight-up nonsense, the AI has been through a lot.
Curious about more crazy questions Nigerians have asked Grok? Check out Bolu’s story for the wildest ones!
Sycamore gets approval to operate as a fund and portfolio manager
Sycamore, a Nigerian digital lender, has got the green light from the SEC to operate as a fund and portfolio manager, per TechCabal. This isn’t just about lending anymore. They’re expanding big time into investments, making it easier for everyday Nigerians to grow their money.
With more people looking for accessible investment options, Sycamore is stepping up to fill that gap. The plan? Offering a mix of investments in stocks, bonds, and money market instruments across multiple currencies both local and foreign.
Per CEO Babatunde Akin-Moses, this move is all about giving freelancers, SMEs, and regular Nigerians the kind of investment opportunities they’ve been asking for. It’s not a pivot from lending; it’s an upgrade.
To lead this new division, Sycamore Investment and Asset Management Limited (SIAML), they’ve brought in Oluwagbenga Magbagbeola, an expert with 17 years in capital markets. Having worked at ARM Securities, FBNQuest, and Profund Securities, he knows the game and will help Sycamore navigate the world of wealth management.
Sycamore is also rolling out a revamped mobile app packed with AI-powered portfolio management, real-time analytics, and a multi-currency wallet, so users can invest in USD, EUR, GBP, and NGN. They’re aiming to make wealth management accessible to more Nigerians, just like fintech platforms Bamboo and Rise have done.
Beyond the usual investment options, Sycamore is planning to introduce alternative investments like Real Estate Investment Trusts (REITs) and a USD-denominated product. They see asset management as a major revenue driver and are already thinking ahead, with plans to raise more capital by late 2025 or early 2026 to expand across Africa.
In case you missed them
- Dangote-backed tech Fund secures $20m from UK’s BII
- This African ‘OnlyFans’ paid over ₦1.2bn to adult content creators in its first year of operations
What I’m watching
- Evolution, Genes, and Atheism – Richard Dawkins’ Final Tour
- HIV/AIDS: Plague of the 21st Century
Opportunities
- Flutterwave is hiring to fill in several positions. Apply here.
- OPay is looking for a State Manager. Apply here.
- Interswitch is hiring a Senior Software Developer. Apply here.
- PalmPay is recruiting a Business Developer. Apply here.
- Standard Bank Group is looking to fill several positions across Africa. Apply here.
- Paystack is hiring for several roles. Apply here.
- Moniepoint is hiring for several roles. Apply 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 lovely Tuesday!
Victoria Fakiya for Techpoint Africa.
