👨🏿‍🚀 Daily – Kenya’s bold move |

Kenya’s Communications Authority is shaking up the satellite internet landscape with a bold proposal to raise licensing fees for providers like Starlink—potentially increasing the cost of a 15-year license by 10x.

The move, aimed at tightening regulations and ensuring technology neutrality, will raise concerns within the industry.

While the CA claims the rules could boost oversight and open up opportunities for more infrastructure, smaller satellite ISPs will find the increased costs challenging.

Starlink, the newest but biggest player in the space, is expanding rapidly in the country and will likely be able to pass that cost on to customers. However, its competitors, four of which have a combined 1,000 customers, may not have as much wiggle room.

Yet, some companies will be pleased with the new proposals, like local telecoms companies. These new fees will mean threats to their dominance of internet services will need deep pockets.

In August 2024, Safaricom wrote to the Communications Authority asking that satellite service providers should only operate in Kenya subject to partnering with an existing local licensee. It might not have gotten its wish, but these proposals definitely protect local players.

Read Adonijah’s report on the proposed changes here.

On Tuesday, Guaranty Trust Bank (GTBank) took a notable step towards meeting Nigeria’s Central Bank (CBN) recapitalisation mandate. Its parent company, Guaranty Trust Holding Company Plc (GTCo Plc), raised ₦209 billion ($136 million) through a retail equity offer—a campaign aptly dubbed A Slice of Orange.

The campaign, which generated significant buzz on social media, underscores the liquidity available in the Nigerian Exchange (NGX) to support such ambitious fundraising goals. Yet, despite the strong showing, the outcome fell short of GTCo’s ₦369 billion ($569 million) target, leaving a ₦162 billion ($105 million) gap. To bridge this, the bank plans a second fundraising phase, this time targeting foreign institutional investors.

While the retail equity campaign showcased GTCo’s ability to engage the public and mobilise significant funds, falling short of the full target may signal challenges ahead. For one of Nigeria’s largest and most reputable banks, it raises the question: Why didn’t the marketing blitz achieve the desired result?

Perhaps economic uncertainty or market conditions played a role, but the shortfall is notable given the scale of GTCo’s efforts and the strength of its brand. For the second phase, beyond meeting CBN’s mandate, GTCo has ambitious plans for the proceeds. Most of the funds will bolster GTBank’s capital base, but the bank also aims to expand operations, enhance product offerings, and drive innovation across its Banking and Non-Banking subsidiaries. 

As GTCo moves into the next phase, its ability to attract institutional investors and close the funding gap will be a critical test of its market confidence and strategy.

ATMs in Nigeria are in sharp decline, with transactions falling by nearly 20% to ₦12.21 trillion ($8 billion) in H1 2024, according to the Central Bank of Nigeria (CBN). 

This isn’t just a Nigerian issue, it’s global. Last year, one insights firm reported that the total number of ATMs worldwide had been declining since 2021. 

Globally, banks and other financial institutions are scaling back on ATM investments, citing high operational costs, maintenance challenges, and evolving customer behaviours.

In Nigeria, PoS agents have stepped in to fill the gap, creating a network of cash withdrawal points that are far more accessible and reliable. This shift became even more pronounced during the 2023 cash crunch, when bank-imposed limits on ATM withdrawals pushed customers to PoS operators. Fintechs like Paga and OPay fueled the trend, deploying thousands of PoS devices and making them an integral part of Nigeria’s cash economy.

The CBN’s recent directives—forcing banks to load ATMs with cash and capping PoS agent daily limits at ₦1.2 million ($779)—may signal an attempt to rebalance the scales. But will it work? 

PoS agents, already critical to Nigeria’s financial ecosystem, are likely to pass on increased costs to customers, maintaining their stronghold.

The broader question remains: Is the decline of ATMs a technological failure or a calculated shift by banks unwilling to maintain these costly infrastructures? With the ease and ubiquity of PoS machines, will Nigerians queue up at ATMs again, or is the cash economy permanently shifting to this new normal?