Although voice revenues for telecom operators – fixed line and mobile – are expected to increase in Africa over the next five years (from $48.7bn in 2014 to $53.9bn in 2019), alternative revenue sources are urgently being considered by telcos, some of which will be addressed at the upcoming AfricaCom 2015 work sessions.â€¨ â€¨
How to harness data and whether big data can be successfully monetised by operators, will be a pivotal discussion at New Revenue Streams’, an addition to the AfricaCom 2015 line-up.
Matthew Reed, Principal Analyst at Ovum, noted recently that mobile data revenues in Africa are expected to almost double over the coming five years, rising from about $10.8bn in 2014 to $20.9bn in 2019. This figure also includes the shift towards digital service offerings from the operators to consumers and enterprise alike. â€¨
â€¨Supporting this premise and adding fuel to the data burning, is the emergence and rapid adoption of new character-based languages, such as Emojii. From pen pals, to email and now to graphic engagement, the world of communication is changing.
This is also good news for African MNOs as these graphic lingos are catching on fast, aiding social inclusion with their easy-to-understand representations and subsequently boosting data traffic across all income groups.â€¨
â€¨However, data continues to be expensive in Africa and in order for fixed line and mobile network operators to remain profitable for the foreseeable future, diversification of service and product offerings, has to occur.
For this reason, topics at the ‘New Revenue Streams’ session will also include: Opportunities for revenue from the Triple Play Model as well as the role that Machine to Machine (M2M) services could play in Africa – how the technology works, what business models and what standards would need to be agreed on and implemented for device to device communications to succeed.â€¨
â€¨Discussing the various opportunities that are currently available and even those of the future, are numerous industry achievers.
Included in the line-up is Rapelang Rabana, founder of Re-Kindle Learning – acknowledged by the World Economic Forum as Entrepreneur for the World – who will share her insights as to how learning and mobile can be combined for revenue and social enhancement. â€¨ â€¨
“As the digital economy evolves, telcos have a unique opportunity to play a more active role in the ‘advancement’ of society and, global enterprise” commented Julie Rey-Gore, Research Director for Com World Series. Indeed, Telcos are integral and influential to many aspects of our connected lives ranging from media and information, to trade and finance as well as education and healthcare.
As such, an increasing part of this ‘ever on’ segment is the growing ‘Wearable Device’ market and its influence on digital retail. â€¨ â€¨
Globally, Wearables are currently valued at approximately USD 8 billion and are predicted to grow to between USD10 billion – USD 12.6 billion by 2018 as we march towards singularity and a brain-computer interfaced society. For Telcos, owning a slice of the connected living market is an opportunity not to be ignored, consequently this will also be debated during the session on Wednesday 18th November, day two of AfricaCom 2015. â€¨
â€¨Other notable organisations taking part in the discussions on this day will be: Malawi Telecommunications, Zamtel, Airtel Africa, Procera Networks, Wananchi Group, NEC Corportaion, BCSG, Huawei Technologies and BTCL.
About AfricaCom 2015
Taking place at the Cape Town International Convention Centre (CTICC) from 17 – 19 November 2015, AfricaCom is now in its 18th year. AfricaCom is Africa’s largest communications conference & exhibition. The conference programme covers the most strategic issues affecting companies in Africa’s digital market – services, efficiency, profitability, customer experience, partnerships, policy and more – and features 4 co-located events: VSAT Africa, TV Connect Africa, LTE Africa and Apps World Africa.
This century is always looking at improving new super high speed technology to make life easier. On the other hand, beckoning as an emerging fierce reversal force to equally match or dominate this life enhancing super new tech, comes swift human adversaries which seem to have come to make living on earth even more difficult.
The recent discovery of a pandemic, Covid-19, which moves at a pace of unimaginable and unpredictable proportions; locking people inside homes and barring human interactions with its dreaded death threat, is currently being felt.
Member of Parliament for Kanye North, Thapelo Letsholo has cautioned Government against excessive borrowing and poorly managed debt levels.
He was speaking in Parliament on Tuesday delivering Parliament’s Finance Committee report after assessing a motion that sought to raise Government Bond program ceiling to P30 billion, a big jump from the initial P15 Billion.
Government Investment Account (GIA) which forms part of the Pula fund has been significantly drawn down to finance Botswana’s budget deficits since 2008/09 Global financial crises.
The 2009 global economic recession triggered the collapse of financial markets in the United States, sending waves of shock across world economies, eroding business sentiment, and causing financiers of trade to excise heightened caution and hold onto their cash.
The ripple effects of this economic catastrophe were mostly felt by low to middle income resource based economies, amplifying their vulnerability to external shocks. The diamond industry which forms the gist of Botswana’s economic make up collapsed to zero trade levels across the entire value chain.
The Upstream, where Botswana gathers much of its diamond revenue was adversely impacted by muted demand in the Midstream. The situation was exacerbated by zero appetite of polished goods by jewelry manufacturers and retail outlets due to lowered tail end consumer demand.
This resulted in sharp decline of Government revenue, ballooned budget deficits and suspension of some developmental projects. To finance the deficit and some prioritized national development projects, government had to dip into cash balances, foreign reserves and borrow both externally and locally.
Much of drawing was from Government Investment Account as opposed to drawing from foreign reserve component of the Pula Fund; the latter was spared as a fiscal buffer for the worst rainy days.
Consequently this resulted in significant decline in funds held in the Government Investment Account (GIA). The account serves as Government’s main savings depository and fund for national policy objectives.
However as the world emerged from the 2009 recession government revenue graph picked up to pre recession levels before going down again around 2016/17 owing to challenges in the diamond industry.
Due to a number of budget surpluses from 2012/13 financial year the Government Investment Account started expanding back to P30 billion levels before a series of budget deficits in the National Development Plan 11 pushed it back to decline a decline wave.
When the National Development Plan 11 commenced three (3) financial years ago, government announced that the first half of the NDP would run at budget deficits.
This as explained by Minister of Finance in 2017 would be occasioned by decline in diamond revenue mainly due to government forfeiting some of its dividend from Debswana to fund mine expansion projects.
Cumulatively since 2017/18 to 2019/20 financial year the budget deficit totaled to over P16 billion, of which was financed by both external and domestic borrowing and drawing down from government cash balances. Drawing down from government cash balances meant significant withdrawals from the Government Investment Account.
The Government Investment Account (GIA) was established in accordance with Section 35 of the Bank of Botswana Act Cap. 55:01. The Account represents Government’s share of the Botswana‘s foreign exchange reserves, its investment and management strategies are aligned to the Bank of Botswana’s foreign exchange reserves management and investment guidelines.
Government Investment Account, comprises of Pula denominated deposits at the Bank of Botswana and held in the Pula Fund, which is the long-term investment tranche of the foreign exchange reserves.
In June 2017 while answering a question from Bogolo Kenewendo, the then Minister of Finance & Economic Development Kenneth Mathambo told parliament that as of June 30, 2017, the total assets in the Pula Fund was P56.818 billion, of which the balance in the GIA was P30.832 billion.
Kenewendo was still a back bench specially elected Member of Parliament before ascending to cabinet post in 2018. Last week Minister of Finance & Economic Development, Dr Thapelo Matsheka, when presenting a motion to raise government local borrowing ceiling from P15 billion to P30 Billion told parliament that as of December 2019 Government Investment Account amounted to P18.3 billion.
Dr Matsheka further told parliament that prior to financial crisis of 2008/9 the account amounted to P30.5 billion (41 % of GDP) in December of 2008 while as at December 2019 it stood at P18.3 billion (only 9 % of GDP) mirroring a total decline by P11 billion in the entire 11 years.
Back in 2017 Parliament was also told that the Government Investment Account may be drawn-down or added to, in line with actuations in the Government’s expenditure and revenue outturns. “This is intended to provide the Government with appropriate funds to execute its functions and responsibilities effectively and efficiently” said Mathambo, then Minister of Finance.
Acknowledging the need to draw down from GIA no more, current Minister of Finance Dr Matsheka said “It is under this background that it would be advisable to avoid excessive draw down from this account to preserve it as a financial buffer”
He further cautioned “The danger with substantially reduced financial buffers is that when an economic shock occurs or a disaster descends upon us and adversely affects our economy it becomes very difficult for the country to manage such a shock”