Restless Global - Africa Strategic Advisory and Content Development

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HUSTLE & FLOW #33: Mastercard and MTN launch virtual payment solution, Abidjan is where Live Music is at, Will Smith Comes to Africa, and more

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Dear colleagues and friends,

Good news is so rare these days that it is worth making a big deal out of it. As expected, Ngozi Okonjo-Iweala made history a week ago when she became the first woman and the first African to become Director-General of the World Trade Organisation. Nigerian women took to social media to celebrate the occasion by posting pictures of themselves wearing Okonjo-Iweala’s signature Ankara look under the hashtag #BeLikeNgoziChallenge.  

Okonjo-Iweala was not the only African to reach great heights in the aristocratic world of multinational institutions last week. A few days later, Former Finance and Economy Minister of Senegal Makhtar Diop became the first African appointed Managing Director of the International Finance Corporation (IFC), the World Bank’s private sector arm.

Okonjo-Iweala and Diop are welcomed role models in a grayscale world where hero-picking can be a hit or miss - as illustrated by the recent falls from grace of Nobel Peace Prize laureates Aung San Suu Ky and Abiy Ahmed

In Rwanda, it’s a proper Hollywood hero who is now on trial. Paul Rusesabagina, the former manager of the Hotel des Mille Collines played by Don Cheadle in the 2004 film Hotel Rwanda, was arrested last year in circumstances worthy of a spy movie (it involved a Burundian pastor working as double-agent). Rusesabagina, also a politician and a long-time detractor of Paul Kagame’s regime, is now being prosecuted for “terrorism, murder and financing rebellion”. The context is complex and murky as is everything in the Rwandan political sphere, which by the way could be a great setting for an African version of House of Cards. But considering that I have never been to Rwanda, albeit not for lack of trying (I was kicked out at the border back in 2007, a story for another day), I will reserve my opinion on the matter. In any case, the time is ripe for the release on March 30th of acclaimed journalist Michela Wrong’s new book: Do Not Disturb: The Story of a Political Murder and an African Regime Gone Bad.

This week in HUSTLE & FLOWI’ll talk about a potentially-groundbreaking new virtual payment solution launched by Mastercard and MTN; Black French rappers flocking to Abidjan to hold live concerts in front of actual people; and Black Hollywood royalty Will Smith and Jada Pinkett-Smith signing with the no-less regal Mo Abudu of EbonyLand. But read on also for some words on Kenya’s whimsical public libraries, South African label Maxhosa in Zamunda, Fela’s Rock and Roll Hall legacy, Iroko’s stock exchange ambitions, a Nigerian-Indian love story, and a podcast about African masculinity, among other juicy tidbits.

If you’ve received this edition of HUSTLE & FLOW from a well-intentioned colleague, make sure to subscribe and check out the archives at www.restless.global/hustleflow. I always love to hear from you so drop me a note at marie@restless.global or on LinkedIn, Instagram, Twitter or Facebook @marieloramungai (but please, I’m begging you, no more Clubhouse invites).

Happy reading to all,


Marie


INTERNET INFRASTRUCTURE

Am I hammering the data center nail on the head? Yes, yes I am. A new report curated by The African Data Centres Association and Xalam Analytics reveals that Africa will need 1,000 MW and 700 data centre facilities to meet the ever-increasing demand for data as broadband users are expected to double across the continent in the next 10 years. To get a sense of the size of the gap, there were only 62 data centres with 139 facilities in 26 countries in Africa in August 2020. Now I’m hearing from investors that they can’t find enough projects to acquire or finance. Have a lead? Send it my way and I will transmit.


MOBILE

Foreign investors’ enthusiasm for the freshly liberalized Ethiopian telecommunications sector has expectedly cooled off as the country remains mired in a months-long conflict in its northern region. Last year, leading international operators such as Vodacom, MTN, Etisalat and Orange had all expressed interest to acquire telecommunications licences in Africa’s last major greenfield market. But now the Ethiopian Communications Authority says it is still waiting on bids to come through, despite two new licenses being available. 

There are however other lucrative deals to be made elsewhere. In Angola, Africell has finalised an agreement to become the country’s fourth mobile operator after Movicel, Unitel and state-owned Angola Telecom. Africell currently services some 12 million subscribers in Uganda, Sierra Leone, Gambia, and DRC. In 2018, the company secured a $100 million loan from the U.S. Development Finance Corporation to fund its Africa expansion strategy. Meanwhile, South African mobile giant MTN is also going forward with its new Africa-centric strategy, selling its 20% stake in Belgacom for $121.41 million with the goal to reduce debt and reinvest in its operations on the continent. 


E-COMMERCE

Mastercard and MTN have partnered to launch a virtual payment solution linked to MTN MoMo (Mobile Money) wallets that would allow millions of consumers in 16 countries across Africa to access global e-commerce platforms. The service is available regardless of whether or not the customer has a bank account, and is potentially a game changer. Indeed, such a solution would not only allow individual consumers to purchase goods from international online merchants, but also empower small businesses to pay for services or supplies not available locally.

In Ivory Coast, a thriving informal digital economy is developing thanks to small business owners who are finding that selling their goods on social media allows them to circumvent high retail rents and government bureaucracy. The popularity of these businesses, offering everything from imported clothes to hand-made jewelry, is fueling a second economy of “motorcycle boys” who handle delivery. All to the displeasure of the government, which does not receive any tax revenue from this alternative distribution channel.


LITERATURE

Black and African futuristic science fiction has grown in leaps and bounds in recent years, with writers now being more intentional about telling stories centered around African characters. If you are new to the genre, Tor.com has a useful guide to help you get started. The list, which includes books like Nnedi Okorafor’s Binti, Namwali Serpell’s The Old Drift, or Nicky Drayden’s The Prey of Gods, focuses on Africanfuturism, a subcategory of science fiction in which the themes, characters, and roots of the story are based in Africa. The term was coined by writer Nnedi Okorafor, who uses it to distinguish her work from Afrofuturism, which refers to stories from outside of the African continent featuring Black people from the diaspora.

In 2017, Wanjiru Koinange and Angela Wachuka founded Book Bunk, a social impact firm working to restore some of Nairobi’s iconic public libraries. There is something Don Quixote-esque about the idea of bringing Kenyan public libraries back to life in the era of TikTok, but the two women are veterans of the creative space and the results are definitely Instagram-worthy. Now you can follow Angela and Wanjiru’s journey in Book Bunk’s podcast A Palace for The People.


FASHION

As the global conversation around the creative industries’ potential to power the economic growth of the African continent takes more and more prominence, one key area of debate is how to protect African traditional products, crafts, and knowledge from counterfeiting or appropriation. Solutions could come from the implementation of legal tools such as patents, trademarks or geographical indications. One interesting case study comes from Burkina Faso, where a new trademark for the production of the local Faso Dan fani loincloth has recently been established to protect the traditional textile from made-in-Asia counterfeits. The trademark was developed based on a certain set of criteria which include the use of local thread and die. Several cloth weavers have now received approval and will be producing and marketing Faso Dan fani textiles tagged with a physical label, which customers can scan with their smartphones to check the product’s provenance. 

A new opportunity to admire African textiles is coming to London in 2022, thanks to the V&A Museum’s upcoming exhibition disappointingly entitled “African Fashion”. The exhibition intends to celebrate the global impact of fashion from the continent by focusing on the works of 20th century designers Shade Thomas-Fahm (Nigeria), Chris Seydou (Mali), and Kofi Ansah (Ghana), and contemporary Nigerian designer Alphadi. Interestingly, the museum has issued a public call-out for personal objects, including 20th century kente, bògòlanfini, khanga and commemorative cloths from the independence and liberation years, and made-to-order garments, including aso ebi. If you have any of those in your cupboards, email the V&A at africafashion@vam.ac.uk.

Set to be released on Amazon Prime on March 5th, Coming 2 America, the sequel to the iconic 1998 comedy, is the next Hollywood blockbuster to spotlight African creatives. The film’s trailer shows star Eddy Murphy and South African actress Nomzamo Mbatha wearing South African fashion designer Laduma Ngxololo’s distinctive knitwear label Maxhosa. And Zamunda wouldn’t be what it is without a few Nigerians in the mix, so keep your eyes peeled as well for cameos by Afrobeats king Davido, actress Lola Adamson, singer and actor Rotimi Akinoso, and actor, musician and director Olaolu Winfunke.


MUSIC

In an interesting turn of events, while concerts remain banned in France and in most of Europe, the Ivorian capital Abidjan is becoming the place to be for Black French artists in search of a connection with their audience. After a short lockdown in March 2020, Ivory Coast quickly reopened its theatres, bars and nightclubs. Besides some much needed revenue (between 20,000 and 100,000 euros per concert), in Abidjan major French rappers such as Niska, Gims, Kaaris, Ninho, Youssoupha and Le Juiice are also finding an intoxicating energy. For these artists, who themselves hail from the African diaspora, reconnecting with the rhythms and sounds of the continent means renewed inspiration - but also business development. Universal Music, Sony Music, Apple Music and Spotify all have boots on the ground, betting on the future growth of “rap ivoire” and of music streaming platforms in francophone West Africa.

Making the case for the long-term value of African musical assets, Afrobeat legend and revolutionary Fela Kuti has been nominated for induction into the 2021 Rock and Roll Hall of Fame 24 years after his death. Despite solid competition from 15 other major artists including Jay-Z, LL Cool J, Mary J. Blige, Chaka Khan, and Tina Turner, Fela is currently leading with 153,189 votes (Tina Turner comes next with 136,621) thanks to massive social media mobilization by Nigerians. Can Naija be beat? Standby for the announcement of the winner in May. In any case, Fela’s legacy lives strong, thanks in part to his talented family. His son Femi Kuti and grandson Made Kuti have recently released a joint album called Legacy +, blending  old and new variants of Afrobeat with the kind of socially conscious lyrics that the older Kuti would be proud of.


SPORTS BUSINESS

FIFA, the African Union, and the African Champions League (CAF) have partnered to launch a schools football competition that would kick off in DRC and extend to other countries across Africa. According to the partners, the aim of the project would be “to improve lives and to harness the possibilities it offers to instill positive values in young people”.  


BROADCAST

As global steaming platforms continue their steady path towards world domination, Multichoice is getting increasingly worried about the future of its Pay TV business across Africa. The operator has appealed to industry regulators to take urgent action to protect it against services like Netflix, YouTube, Disney+, HBO Now and Peacock, which Multichoice sees as “competitive existential threats”. The Pay TV giant is not overreacting - its lucrative premium subscription has already recorded a steep decline. One of the ways Multichoice is fighting back is by investing in a “hyper-local” content strategy. According to CEO Calvo Mawela, the company has already spent over $135 million on local content productions across the continent, with the goal to bring the share of local content on its various channels to 45%. 

In the Free-To-Air space, South African public broadcaster SABC may be turning a corner. The struggling company reported positive results from its turnaround strategy implemented nearly a year ago, selling out primetime advertising inventory for two of its channels in November 2020 for the first time since 2015. 


VOD

Iroko TV CEO Jason Njoku has announced that he plans to list the company on the London Stock Exchange (LSE) Alternative Investment Market (AIM) in 2022. This is not a new idea for Njoku - earlier plans to take the company public were shelved when the pandemic hit. Since its launch in 2011, Iroko has alternated between focusing on its international or local audience, in a bid to find the winning formula. In 2020, a deadly cocktail of sharp economic downturn and currency devaluation in Nigeria made it clear that Iroko’s salvation could only come from abroad. The LSE listing aims to raise between $20-30 million, valuing the company at $80-100 million. 

Meanwhile, Netflix’s winning streak with Nollywood films continues. Namaste Wahala, a romcom which follows an Indian-Nigerian couple on their rollercoasting journey to marriage, was released on Valentine’s Day and went on to hit the platform’s top 10 list of most popular movies in the world. Not everybody liked the movie though, which some critics called a missed opportunity. On the series front, Netflix’s progress has been slower, with several projects in Nigeria or South Africa suffering delays or cancelations. My guess is that Netflix is finding itself faced with the realities of a market where most writers and producers are completely new to the development process. Season 2 of Blood and Water, however, is definitely a go for later this year: the streamer recently released a behind-the-scenes video showing some of the new additions to its cast.  

Showmax has commissioned a South African version of the Banijay dating reality show Temptation Island. The platform recorded huge growth and engagement last year with its release of the 10th season of the uber-popular Big Brother Naija, and is no doubt hoping to repeat the same success with Temptation Island, another tried-and-tested reality format that plays to the African audience’s taste for relationship-based content. 

Finally, yet another player is coming to the party in South Africa: BritBox, the joint platform of BBC Studios and ITV, is set to enter the country in the second half of 2021, following successful launches of the platform in the U.S, Canada, the U.K. and Australia. 


FILM

Night of the Kings, the last, very buzzy film of Ivorian filmmaker Philippe Lacôte, has been shortlisted for this year's Academy Awards. The movie, which is only the third-ever Oscar submission made by Ivory Coast, has attracted the interest of Nigerian-British actor David Oyelowo who has come on board as Executive Producer. Whatever happens on Oscar night, Lacôte, who already has a 20-year career behind him, seems set for his Hollywood debut. 

In an extremely challenging global environment for indie film finance, South African director Sibs Shongwe-La Mer’s sophomore feature Halo Daze has attracted equity financing from SK Global. It is the first foray into African cinema for the company, who is behind global hits Crazy Rich Asians and Delhi CrimeHalo Daze’s international sales will be handled by Pape Boye and Eric Tavitian’s Paris-based Black Mic Mac, a new venture fully dedicated to African content. Another lucky (and probably deserving) South African film is the horror-thriller Gaia, which is set to debut in the Midnight section of virtual SXSW in March and was picked up by XYZ Films who will sell worldwide rights excluding Africa.


CONTENT DEVELOPMENT

And now to the biggest news of the week: EbonyLife Studio and its unstoppable CEO Mo Abudu have signed a deal with Will Smith and Jada Pinkett-Smith’s Westbrook Studios to co-develop and co-produce a slate of Afrocentric films and TV shows. The projects include the series Dada Safaris, which follows the life of four female friends who have to make big decisions, and The Gods, about married academics who discover seven long forgotten African gods, as well as the romcom movie Are We Getting Married? If you’ve been following, you know that EbonyLife also has projects in development with Netflix, Sony Pictures, and AMC. This is undoubtedly impressive, but the reality is that this is just the tip of the iceberg as Hollywood players have been ramping up their behind-the-scenes involvement with Nollywood in the past 6 months. You can expect a slew of similar announcements, from a variety of Nigerian creators, in the months to come.

In a completely different genre comes a fully African show that has secured distribution in the US: N*Gen (pronounced "engine”), a science TV show developed by 6 Ugandan teachers and targeted at school children, debuted early February on The Africa Channel. The show, which featured mostly female presenters and guests, looks at science through an African lens. Presenters give short lessons on topics such as bees, robots, sounds, water and paleontology, and conduct science experiments with students. Funded and produced by East African nonprofit Peripheral Vision International, N*Gen also broadcasts clips sent in by teachers from across the continent. It is wholesome and innovative - I’m a fan.


ANIMATION

Kenyan Oscar winner Lupita Nyong'o is bringing Sulwe, her 2019 children's picture book about a dark-skinned 5-year-old girl, to the screen. After reading the book in full for Netflix's Bookmarks: Celebrating Black Voices series back in October, Nyong'o will now produce an animated musical version for the streamer.


PODCAST

Turns out there is such a thing as Africa Podcast Day, and apparently it took place  on February 12. One of the featured podcasts was Dans La Tête Des Hommes (In the Mind of Men), a series co-produced by Africanews and Euronews which explores the pressures of masculinity in Africa and how men challenge age-long stereotypes surrounding manhood. 

And for those of you interested in jumping on the podcast bandwagon, the Radio Workshop is offering a free online African Podcast Workshop which will take place between April and June 2021. If you are between 18 and 35 years old and a resident in an African country, you can apply here before March 7, 2021.