HUSTLE & FLOW #22: Ethiopian art is poised for global debut, the Queen releases Black is King, ESPN comes back to Africa, and more

Dear colleagues and friends,

Here on HUSTLE & FLOW we’ve been tracking the winds of change that are currently sweeping the global Black creative world, and this week the tempest has settled on Zimbabwe.

Zimbabwe is a beautiful, schizophrenic country where both the literacy and the formal unemployment rate are at 90%. Former president Robert Mugabe, who passed away less than a year ago, is widely credited for both. What is clear is that his death has so far not magically fixed Zimbabwe, which is currently suffering its worst economic crisis in more than 10 years.

Last week, seven babies were stillborn at Harare Central Hospital after urgent treatment was delayed. Nurses are on strike because of a lack of COVID-19 PPE, and the maternity wards were overwhelmed. The health minister has been sacked over allegations of corruption, as the country struggles with (another) bout of hyperinflation. Three days ago, award-winning author Tsitsi Dangarembga was arrested while protesting this whole mess, ironically just as her latest novel entered the longlist for the prestigious Booker Prize. And because this is 2020, you know there must be more: this is also the week that current President Emmerson Mnangagwa chose to sign an agreement worth $3.5 billion to compensate white farmers evicted from their land in the early 2000s. This is next-level bad timing.

We root for Zimbabwe to find its way out of this quagmire so that the country’s numerous artists and intellectuals can share their talents with the world. But despite all of this, there is no shortage of good news this week. In this edition of HUSTLE & FLOWI talk about the vibrancy of contemporary Ethiopian art, as the country liberalizes in fits and starts; the (unjustified) controversy over Beyonce’s Black is King visual album; and the return of ESPN to the African airwaves. But you’ll also read about Ivorian chocolate, Nigerian curling, and Multichoice’s and Canal+’s first co-production.

If you are new to HUSTLE & FLOW, visit the archives here to catch up on current trends and opportunities in African Entertainment, and don’t forget to subscribe. To drop me a note, comment, suggestion, or correction, email me at marie@restless.global or reach out on LinkedIn, Twitter, Facebook, or Instagram @marieloramungai.

Happy reading to all,

 

Marie

 

INTERNET INFRASTRUCTURE

Facebook’s investments in infrastructure and connectivity in Africa will increase internet traffic by 9%, contributing an extra $57 billion to Africa's economy by 2024, according to a recent report by Analysys Mason. Nigeria, Kenya and South Africa will benefit the most due to the presence of Facebook's Points of Presence connecting ISPs directly to Facebook's internal network. Most notably and as we’ve discussed here before, Facebook is one of the investors behind the $1 billion 2Africa subsea internet cable project, which will link 16 African countries to Europe and the Middle East and triple the current capacity. 

Zimbabwean billionaire Strive Masiyiwa is seeking buyers for 20% to 34% of Liquid Telecom for as much as $600 million. He needs the money to repay a $375 million loan backed by Public Investment Corp that was used to fund Masiyiwa’s failed pay-TV venture Kwese TV (more on this further down in this edition).

Ethiopia resumed full internet connection on July 23 after a 23-day hiatus, and ordinary Ethiopians can now access the internet again. Ironically, that latest internet shutdown came just weeks after Ethiopia’s Council of Ministers approved its digital strategy to boost tech services exports and digitize the country’s economy, which has been growing by more than 9% annually for the past decade. Besides costing the country hundreds of million of dollars, the regular shutdowns are hampering the efforts of Ethiopian tech entrepreneurs to establish Addis Ababa as one of Africa’s major tech hubs. As foreign investors are waiting in the starting blocks to get a piece of this new market of 109 million people, Ethiopia is demonstrating once again that economic and political liberalization is anything but a smooth process. 


MOBILE

Airtel Africa has reported a 6.9% jump in revenues to $851 million in the second quarter of 2020, with mobile money and data recording the most uptick. Over the period, Airtel’s subscribers grew by 11.5% to 111,5 million users throughout the continent. 

Zimbabwean authorities are asking EcoCash, the country’s biggest mobile money platform, to share 2020 transaction data with law enforcement, in a move that the operator says violates its user data privacy rights. The government is alleging that EcoCash is allowing money-laundering activities on its network that are fueling street market foreign currency rates. The Zimbabwean government has been locked in a battle with EcoCash for several months as its currency and economic crisis has spiraled out of control. 


E-COMMERCE

The fast convergence of fintech and e-commerce, clearly a major trend of 2020, continues. Dubai’s Network International has acquired DPO Group, a digital payments company and e-commerce platform, for $288 million. DPO facilitates online payments for some 47,000 merchants in 19 African countries, with South Africa, Kenya and Tanzania being its largest markets. The 15-year-old company, which has largely been flying below the radar, quietly racked up $16 million in revenues in 2019. Just three months ago it launched its e-commerce solution DOP Store, in partnership with Mastercard, initially targeting essential services such as supermarkets, food stores, pharmacies and chemists. 

Meanwhile, Vodacom South Africa is entering the super app game, in partnership with the Chinese Alipay which will act as the technology provider. The operator is planning to create and launch a financial services app that will allow users to stream music, access news, shop online, pay bills and transfer money. The service, which is set to be launched next year, will also assist small and medium scale enterprises to access lending, insurance and other financial services. 

Finally and still on the hot topic of super apps, TechCabal has a very interesting article about OPay’s billionaire Chairman Yahui Zhou, who stepped in as CEO in April and is reportedly behind the recent decision to shut down several of the company’s transport verticals in Nigeria to double down on e-commerce. Four months ago, the company claimed it had 5 million monthly active customers and was responsible for over 60% of mobile money transactions in Nigeria. 


FASHION

Seven African fashion designers talk about the impact of the pandemic on their work in Vogue Italia (Google Translate is your friend here). Interestingly, the designers report little impact from the cancellation of fashion weeks on their business, as most were able to effectively leverage social media to promote their collections. A few even reported an increase in sales over the period. As Vogue Business writes, African designers have turned to establishing their own direct businesses online to make up for retail store closures. Before the pandemic, only the biggest designer brands had websites, and those were targeted at the global customer, while African fashion customers had previously been wary of shopping solely online for fashion due to a cultural preference for physical interactions, a lack of trust in online solutions, and restrictions in delivery. But the lockdowns have led to a fast, deep and long-lasting shift in customer behavior which, I believe, will eventually prove wildly beneficial for the sector.


VISUAL ARTS

British-Nigerian artist Yinka Shonibare shares the vision behind his Guest Artists Space (G.A.S) Foundation in Quartz Africa this week. I’ve talked a couple times about Shonibare’s upcoming artists residency spaces, scheduled to open in Lagos and Ijebu, Nigeria in 2021. G.A.S Foundation will host three artists at a time from various disciplines for three months, offering opportunities for emerging local talents to grow their skills and visibility as well as network with their peers. Shonibare’s project also aims to facilitate social and cultural change by supporting the needs of the local community through job creation and food security. “Social interventions are a part of my practice. They’re not separate from my art,” he says. In recent years, Nigeria’s contemporary art scene has gained global recognition. However, few state-funded educational facilities exist to support creatives. Like it is usual in Nigeria, private individuals - and in this case the more established artists themselves - are stepping up to fill the gap. 

One rare example of a government-led cultural initiative is the refurbishment of Togo’s Palais de Lomé, which was inaugurated with great fanfare in November 2019. The former Palace of Governors, a symbol of French colonial power, was transformed by director Sonia Lawson into an ambitious and innovative art center open to all, celebrating culture and nature. The Togolese government distinguished itself by financing the entire project to the tune of $4 million (3,5 million euros). Lawson counts on sponsorships and donations to make the project sustainable.  

Moving from West to East Africa, CNN has an in-depth feature this week about Ethiopian contemporary art, which may finally be having its moment on the global stage. Although Ethiopia’s art lineage dates back to 4th century church paintings, the local art community had largely been cut off from the rest of the world until current Prime Minister Abiy Ahmed started opening the country. One fascinating consequence of this isolation is that local art practices have had time to develop unaffected by global trends, allowing Ethiopian artists to create their own distinct language. The same could be said of Ethiopian cinema and music, about which I plan to talk more in future editions of HUSTLE & FLOW. Now, the local art scene is booming, with the launch of new art spaces and artists branching out beyond painting to experiment with other disciplines. Of course, international collectors are also starting to notice, so now is the time to go shopping while it is still affordable.


LITERATURE 

British-Nigerian writer, Irenosen Okojie, is this year's prestigious AKO Caine Prize winner for her short story Grace Jones. It tells the story of Sidra, an impersonator of the legendary 70s and 80s musician, who is keeping some dark secrets. 

As I mentioned in introduction, Zimbabwean literary giant Tsitsi Dangarembga’s third novel This Mournable Body has been selected in the latest Booker Prize longlist, alongside Ethiopian-born Maaza Mengiste's The Shadow KingThis Mournable Body reflects on the volatile political landscape in Zimbabwe through the life of female protagonist Tambu, picking up 30 years later from Dangarembga's seminal work, Nervous Conditions. Mengiste’s The Shadow King revisits the Italian-Ethiopian war under Mussolini's reign. 


FOOD

Former banker turned chocolatier Axel Emmanuel has been selected as one of 50 finalists to the African Business Heroes prize 2020. The entrepreneurship competition, an initiative of the Jack Ma Foundation, received 22,000 applications from across Africa. Emmanuel describes his 2012 epiphany, which led him to change careers: “I saw the big transactions of cocoa and thought it’s fine to export cocoa, but not all of it. Two million tonnes of cocoa are exported from the Ivory Coast every year to big companies like Nestlé. It’s absurd. More than 75% of the world’s cocoa comes from Africa, and there were almost no local brands of chocolate.” Emmanuel’s company Le Chocolatier Ivoirien now distributes more than 100 chocolate flavors in local supermarkets, airlines, and other outlets, employing a team of 10. He’s now looking for investors to open a factory (and, I’m guessing, wouldn’t say no to partners who could get him into Wholefoods or Monoprix).


MUSIC

Beyonce’s highly anticipated Black is King, the visual companion to the singer’s 2019 album The Lion King: The Gift, was released last Friday on Disney+, DSTV and Canal+. The 90-min film sees Beyonce narrate and guide a young African king on a journey of love, betrayal, and understanding the importance of his history. A perfectly-timed reclamation of Black power and heritage, Queen B’s latest production still managed to stir up controversy as some African critics complained about perceived cultural appropriation from the American star. Personally I find myself resolutely on the pro-Bey camp here. Beyonce and her team clearly put in the time and care to curate the dozen African artists who collaborated with her on the project, offering them a massive platform to showcase their work in the process. Besides featuring Afrobeats stars such as Wizkid, Tiwa Savage, Mr Eazi or Yemi Alade, alongside appearances by Lupita Nyong’o or dancers from the DWP Academy in Ghana, Black is King also makes references to Dogon and Yoruba cultures, and includes the work of African designers such as Ivory Coast-based Loza Maléombho. The very secret production was shot all over the globe including in South and West Africa. It was codirected by Kwasi Fordjour, creative director at Beyoncé's Parkwood Entertainment, alongside African directors Emmanuel Adjei, Blitz Bazawule (The Burial of Kojo), Pierre Debusschere, Jenn Nkiru, Ibra Ake (Atlanta), Dikayl Rimmasch, Jake Nava and Dafe Oboro.

In a new milestone of the genre’s journey to global domination, Afrobeats is getting its first-ever official singles chart in the UK. The move by the UK's Official Charts Company recognizes Afrobeats’ rising popularity in the UK and growing influence on popular culture across the globe. The new Top 20 weekly rundown will pull data from downloads, physical sales and audio and video streaming, and the playlist will be published every Sunday on Spotify.

Meanwhile, a new player is entering the now crowded Nigeria streaming market (which already counts Boomplay, Apple Music, Deezer, UduX, Spotify, SoundCloud and MTN MusicTime), as music streaming and discovery service Audiomack opens a new office in Lagos. According to the 8-year-old company, “when you look at majority English-speaking countries, [Nigeria is] second after the United States. Since most of the artists we have are English speaking, it makes practical sense to see Nigeria as a growth opportunity both for Audiomack and all of the artists who upload their music to the platform.” 

Moving over to the Francophone side, Universal Music Africa has launched Def Jam Music fr, which will focus on artists from Cameroon, Ivory Coast and Senegal. To bring this news into context, the label’s parent company Vivendi stated in its 2019 annual report that local artists (meaning artists from a certain territory selling in that same territory) accounted for 61% of UMG’s revenues last year - a strong incentive for the music giant to continue investing in its African operations. However African diaspora artists are also extremely popular in France. In fact, Franco-Malian singer Aya Nakamura is the most listened to artist in France on Spotify, where she accumulates more than 12 million listeners per month and dethrones male superstars Booba, PNL and JuL by far.


SPORTS

This week we’re doing a little tour of lesser-known sports in Africa. The first one is freestyle football, which is described by the World Freestyle Football Association (WFFA) as “the art and sport of juggling a football using all parts of the body to entertain audiences and outperform opponents; a fusion of tricks with a ball, dance and music.” Sports tricks + dance + music = a perfect African product (just add TikTok). Freestyle football was launched in Africa and Nigeria in 2017 by business leader and philanthropist Valentine Ozigbo, the Chairman of Feet ‘N’ Tricks International. In 2019, some 30 countries converged in Nigeria for the African Freestyle championships, sponsored by StarTimes. Ivorian Abdoul Titi Kone won for a second time. This year, the competition took place virtually, sponsored by MTN, and saw reigning Nigeria champions Benjamin Ebong and Augustina Unamba retain their titles.

A lot more unexpected is the slow but steady development of... curling in Africa. OkayAFrica has an offbeat article about a small group of die-hard diasporan fans trying to bring the winter sport to Nigeria, despite the unlikely climate. In 2018, Damola and Henrietta Daniel set up the Nigeria Curling Federation (NCF), which became the first African member association of the World Curling Federation. They recruited team members from the diaspora to participate in events in Norway, Scotland, China and Austria. NCF has a five-year plan to create 100 teams to breed competition in the country and has purchased land for the first ice rink in Nigeria in Calabar, partnering with ISS, a German firm renowned for making ice rinks across the world. Estimated at $6.9 million, the facility could become the home of ice sports in the country. In true Nigerian fashion, nothing is too big for the Daniels who dream of representing Africa at the Beijing 2022 Winter Olympics, in the company of the Nigerian bobsled and skeleton athletes who've pioneered winter sports in Africa. 


BROADCAST

ESPN is back on on Dstv across Africa. Two 24-hour channels, ESPN and ESPN2, will feature every major US sport, including the NBA, NFL, National Hockey League, and Major League Baseball, plus live football from the English Football League, Scottish Premier Football League, Dutch Eredivisie and Major League Soccer, as well as local sports including the Cup of Nations and boxing tournaments. ESPN’s courtship with the African market has been through several twists and turns over the past few years. In 2013, the channel had pulled its content away from Dstv as part of a decision to end operations in non-American markets that were considered to be no longer financially viable. A couple years later in 2016, the sports channel struck a licensing partnership with pay TV and VOD upstart Kwese TV (mentioned earlier in this newsletter), an ambitious initiative by Zimbabwean billionaire Strive Masiyiwa’s Econet Media to compete with Dstv. However, barely 18 months after its launch, Kwese TV shut down (a classic case of overspending in small markets with tiny margins) and Econet Media went into administration. ESPN had been looking for a new Africa home since then.

Multichoice’s SuperSport and the Spanish La Liga have renewed their broadcast deal for another two years, up until the 2023/24 season, in all languages except Arabic and French. Multichoice has also announced that the number of its movie channels will be reduced from the existing six (M-Net Movies Premiere, Action Plus, Action, Smile, Zone and All-Stars) to four, which will simply be called M-Net Movies 1, 2, 3, and 4 moving forward. A little note here as I know this is extremely confusing: Dstv, Multichoice, SuperSport, Mnet and Showmax are all part of the same group. There are some subtleties (cable operator vs commercial channel bouquet vs individual channels vs VOD platform) but for the sake of simplification you can just consider them one and the same.

Canal+ will launch Ethiopia’s first premium DTH platform at the beginning of 2021, in partnership with satellite operator Eutelsat. The pay TV offer will launch with 50 premium channels and a selection of Ethiopia’s Free-to-Air channels. This is the second partnership announced by Canal+ this month for the continent, following news of a deal with African utilities firm Bboxx. Still in Ethiopia, Indian Zee TV has rolled out a new channel in Amharic called Zee Alem. This brings Zee TV’s total number of channels in Africa to eight, airing mainly Bollywood entertainment and series in different languages across the African continent. 


FILM

Film festival roundup: For the first time in twenty years, an Ivorian feature film will compete at the Venice International Film Festival taking place in September, as Philippe Lacôte’s La Nuit des Rois is one of the 19 titles selected in the Orizzonti section. Lacôte’s first feature Run was selected at Cannes’ Un Certain Regard in 2014. Thirty-one film projects from 13 African countries were selected by the Durban FilmMart Institute to take part in its Finance Forum from 4 to 13 September, and 5 African film projects have been awarded grants in the Berlinale’s World Cinema Fund’s latest funding round. Finally, seventeen producers will take part in the inaugural Creative Producer Indaba scheme, which has been developed by Realness Institute in partnership with Sundance Institute, International Film Festival Rotterdam and European training outfit EAVE. 

South Africa’s National Film and Video Foundation (NFVF) is examining a number of propositions to help and support the film industry in South Africa as it battles the impact of the pandemic. One of the initiatives is the call for fundable proposals that will see the revival of drive-in cinema. And still in South Africa, Netflix has partnered with the South African Screen Federation and the Independent Producers Organisation, to establish a Covid-19 film and television relief fund that will provide emergency relief to the hardest-hit workers in South Africa's creative community. The streaming service will donate about $400,000 from the global $150 million hardship fund it had announced in March.


VOD

Talking about Netflix, a couple recent interviews provide more information on the platform’s inner workings in Africa for those of you out there trying to crack the code: Ife Idowu, the Licensing and Contracts Manager at FilmOne Entertainment, the largest distributor of Nigerian content to Netflix, shares his experience selling to the platform, while Netflix Africa Originals Manager Dorothy Ghettuba speaks to CNN about developing content in Africa during the pandemic.

Only the second global VOD platform to launch across the continent, the British BritBox has announced that it will expand its service to be accessible from Africa. BritBox is a joint venture between the BBC (via the BBC Studios) and ITV. According to Britbox, the Africa move is part of a global extension drive to expand its service to other parts of the world from its current markets of Britain, Canada and the United States. 


CONTENT DISTRIBUTION

Despite the major progress brought about by the arrival of Netflix on the continent, the distribution and monetization of African content remains a challenge, especially for non-English language productions. Alain Modot, founder of distribution company Diffa (who recently brought the company back from previous owner Lagardère Studio), brings a Franco-centric perspective to the matter in this interview. According to Modot, Diffa now represents about 140 producers from 35 African countries, including around 15 Ivorians. He praises Ivory Coast as the only country in Francophone West Africa with a clear audiovisual policy, mostly executed through Fonsic, a European fund managed by the Ivorian Ministry of Culture and intended to support not only Ivorian films but also pan-African and Afro-European co-productions.


CONTENT DEVELOPMENT

Pan-African pay TV leaders Multichoice and Canal+ have joined forces for the first time to co-produce an ambitious epic series called Blood Psalms. Inspired by a Xhosa legend, it tells the story of Zazi, a fierce African queen who battles a world-ending prophecy to lead her people through complexities, politics and endless wars. The 10-episode series will be available to stream on Multichoice’s VOD platform Showmax in 2021. This groundbreaking collaboration is a major development for the African TV space as it will pave the way for much larger production budgets for TV series. 

And to wrap up this week, we take a look across the Atlantic, where African and diaspora creatives continue to collect accolades and high-profile projects. While Issa Rae, Yvonne Orji, Trevor Noah and Uzo Aduba all received Emmy nominations, Kenya’s Wanuri Kahiu has come on board to direct Once On This Island, a feature adaptation of the 1990 Broadway musical based on the Rosa Guy novel My Love, My Love; or, The Peasant Girl, for Disney+. One must wonder where she will find the time as Kahiu is also developing an adaptation of the YA novel The Thing About Jellyfish for Universal, and an adaptation of Octavia Butler’s Wild Seed for Amazon. Another exciting announcement comes from former Netflix exec Erik Barmack, who has teamed up with renowned “Afro-French” (her term) artist Nicholle Kobi on Queens, a high-concept, stylish animated series about six extraordinary real-life African queens. Barmack and Kobi are also in development on La Femme Noire, an animated Sex and the City-type animated series for ViacomCBS-owned BET. 

HUSTLE & FLOW #21: Loon’s balloons take flight in Kenya, Mr Eazi launches $20M Music Fund, Showmax Pro allows sports streaming, and more

Dear colleagues and friends,

This is 2020 and every week we are reminded that reality truly is stranger than fiction. For the past few days, Nigeria’s startup world has been in shock over the gruesome murder of Bangladeshi-American entrepreneur Fahim Saleh, the well-known and well-liked CEO of Nigerian motorbike-hailing startup Gokada. Saleh was found dismembered in his Manhattan apartment, the apparent victim of an incomprehensible act by his 21-year-old personal assistant Tyrese Haspil. Saleh had recently discovered that Haspil had stolen money from him but had chosen not to report him to the police, putting him on a repayment plan instead.

Meanwhile, the normally subdued world of French-language African cinema was also being rocked by its own scandal, as it was revealed that actress Annabelle Lengronne had been edited out of the latest edition of Canal+ Afrique’s Ciné Le Mag show for mentioning Assa Traoré as an example of an inspiring Black woman. Assa Traoré is an activist and the sister of Adama Traoré, a young French-Malian who died in police custody in 2016. In response to what they considered blatant censorship from program director Frédéric Dezert, host Claire Diao and her team resigned. This is actually far from the first incident of censorship at Canal+, which is owned by Vivendi, a conglomerate with business and political interests across Africa and whose management certainly tried - in an incredibly clumsy way - to avoid stirring up anti-French sentiment on the ground. 

As we collectively shake our heads at people making terribly bad choices (Kanye that includes you), we can take comfort in the fact that exciting things do continue to happen in the African entertainment space. In this edition of HUSTLE & FLOW, I’ll talk about internet balloons bringing connectivity to remote areas of Kenya, Mr Eazi’s mogul move creating new financing models for African music artists, and Showmax Pro introducing live sports streaming to Africa’s VOD space.

For those of you currently on their summer vacations, enjoy and feel free to ignore this email. For those of us in Nigeria or the US whose work life knows no respite, don’t hesitate to send me your comments, questions, or corrections at marie@restless.global. Previous editions of HUSTLE & FLOW are available here. Watch out for the next one in two weeks.

Happy reading to all,


Marie

 

CULTURAL INFRASTRUCTURE

The Nigerian government has officially handed over Lagos’ iconic National Arts Theater to the country’s Bankers Committee, which will shepherd its renovation. The landmark location used to be Nigeria’s primary performance center and had its heyday in 1977 when it hosted the Second World Black and African Festival of Arts and Culture (Festac '77), but has since gone into disrepair. The Bankers Committee, which brings together commercial banks CEOs and officials from the Central Bank of Nigeria, has announced that it would invest no less than $51 million (N20 billion) in the project. Besides the rehabilitation of the facility, which is supposed to be completed in 18 months, the project aims to create economic activities in music, film, fashion and ICT around the National Theater, targeting 1 million jobs in the next 5 years. Lagos has been crying for proper infrastructure to support its booming creative industries, and the idea of a Media and Tech city built on the model of Dubai’s Media City has been going around for a while. Depending on the final plans, the National Theater project has the potential to fulfill that role. However, some question whether the timeline and expected results announced by the Bankers Committee are realistic, especially in the current context. Let’s hope that this initiative doesn’t turn out like the 12,000 federal projects reportedly abandoned across Nigeria.


INTERNET INFRASTRUCTURE

Alphabet’s Loon has officially begun operating its commercial internet service in Kenya, in partnership with Telkom Kenya. The fleet of 35 high-altitude balloons will essentially work as floating cell towers, drifting 20 km above ground on currents in the Earth’s upper atmosphere to provide 4G LTE service across 50,000 square kilometres in central and western Kenya. The balloons, which are about the size of tennis courts, were launched from the US and navigated to Kenya using wind currents (which, yes, seems totally crazy). According to Loon, this is the first balloon-powered internet project to launch in Africa, and the first non-emergency commercial deployment in the world.

In rather less uplifting news, the Ethiopian government has only partially restored the Internet across the country, after two weeks of a total internet outage. The government had justified the shut down as a measure to prevent the spread of hate speech after the shooting of prominent Oromo singer and activist Haacaaluu Hundeessaa led to violent unrest. According to internet monitoring group NetBlocks, most fixed-lines and some wifi users have regained access, while mobile internet and data services - which are used by a majority of Ethiopians - remain inaccessible. 


MOBILE

Sonatel, Senegal’s leading telco, is seeking to raise up to $170 million (including $50 million through a bond issue) through the Private Infrastructure Development Group and the Emerging Africa Infrastructure Fund, to upgrade its service platforms and extend its 4G plus network across the country.

In South Africa, MTN has switched on its 5G network in the cities of Bloemfontein and Port Elizabeth. Through its agreement with Ericsson for the provision of 5G radio access networks equipment, the telco now plans to roll out its 5G service across 20 of its markets in Africa, starting with Nigeria. 

Despite a substantial fall in voice and data prices in Africa in recent years, a recent International Telecommunication Union report shows that Africans still spend a lot more on mobile costs as a share of gross national income than the rest of the world. As Quartz writes, African users pay nearly 200% more than the global average for voice and three times more for data, relative to average income.


E-COMMERCE 

The merging of finance and e-commerce solutions continues in Africa’s biggest market. TradeDepot, a four-year-old startup solving supply chain issues in Nigeria’s informal retail market, has raised $10 million from Partech, IFC, Women Entrepreneurs Finance Initiative (We-FI) and MSA Capital and will now be expanding its operations to include financial services and credit facilities to its customers. In a country where informal stores account for 98% of all retail sales, TradeDepot uses technology to connect consumer goods distributors including Nestle, Nasco, Unilever and Kelloggs, to some 40,000 micro retailers in the informal sector. The TradeDepot platform already processes order payments and offers inventory management, which puts it in the position to aggregate data on its merchants’ businesses and use it to build credit ratings. Including this latest round, TradeDepot has raised a total of $36 million since its launch in 2016.

Professor Ndubuisi Ekekwe, writing on the Tekedia Institute website and referring to OPay’s recent shutting down of several of its verticals, has some words of advice for companies that have big ambitions in the consumer sector in Nigeria: you cannot grow faster than the environment. Ekekwe’s take is very insightful and worth quoting at length: “Nigeria cannot be growth-hacked in the way Beijing, London, New York and other areas can. Our gestation period to profitability is legendary and one of the longest in the world (...) If you do those flashy things (yes, one million Facebook likes, top ten local ranking in Alexa, etc), you will burn. More so, as OPay goes into ecommerce, it needs to slow down and not try to grow faster than Nigeria: Nigeria is a slow-po country and no marketing gimmicks will change that. The hardest job in life is finding jobs for people where there are no jobs. The second is making sales to people who have no money! My Response: My principle is to model that Nigeria has only about 30 million “people”. That is a very pessimistic model. It gives me room to navigate. Another strategy is to become a parallel entrepreneur: be in many things and forget Harvard preaching of core competency and domain focus. If you visit one of the owners of a bank in Nigeria, his office has 27 companies with the bank as one. While we know these rich guys for their banks, they are super-diversified that one policy change will affect one business while benefiting another. There is no govt policy in Nigeria that will not help one of the firms and at the end, everything is neutralized and wealth is preserved.” Words to keep in mind as Nigeria enters what is likely to be a long-term recession.


FASHION

Dior Men Creative director, Kim Jones, has partnered with Ghanaian painter and portraitist Amoako Boafo for the brand’s Spring-Summer 2021 menswear collection. Jones, who grew up between Ethiopia, Kenya, Botswana and Ghana with his hydro-geologist father, had wanted to work with an African artist for a while when he encountered Boafo’s work at Art Basel in Miami last year. The collection was modeled by an all-Black cast and released as a short film on YouTube. Dior will also ensure this particular collection leaves a lasting legacy by supporting Boafo’s newly created foundation for young artists in Accra.

Kenya’s ban on the importation of used garments in late March, as a precautionary measure against the spread of COVID-19, could help the country revive its own textile industry, writes the New York Times. The textile sector in Kenya, like in several other African countries, was wiped out in the late 1980s as the continent started opening its markets to foreign competition. A couple of years ago, East African countries had already attempted to ban second-hand clothing imports to boost local manufacturing, but all except Rwanda had to back down after the US threatened to suspend them from the African Growth and Opportunity Act, which provides reduced or duty-free access to the American market. While for Rwandan president Paul Kagame, wearing hand-me-downs not only compromises the development of the local economy but also the very dignity of its people, in Kenya, searching for hidden gems in second-hand markets and upcycling or styling them has become a creative industry in itself. Nevertheless, coronavirus restrictions might have finally provided Kenya with a window of opportunity to start shaping the future of its textile manufacturing sector.


FOOD

Nigerian company Pedro's, founded by Lola Pedro and Chibu Akukwe, is redefining ogogoro, a local West African alcoholic drink extracted from palm treesfor the global market. Ogogoro is a type of gin that is often served to guests, including at traditional wedding ceremonies, or consumed at local bars. Pedro’s team works with communities in southern Nigeria to collect locally filtered palm saps, before distilling them a second time to match global tastes. The drink targets high-income earners across Africa and the world, and is currently distributed in high-end restaurants and bars in Accra, London, and Lagos.


VISUAL ARTS

Senegalese photographer Omar Victor Diop’s series “Liberty”, although produced in 2016, remains extremely topical today and is worth revisiting, especially if you are not yet familiar with Diop’s striking work. “Liberty” chronicles events linked to Black protests across eras and countries through the lens of allegory. It includes a photograph of Diop playing the role of young Trayvon Martin, who was shot and killed in Florida in 2012, and another, played by Diop's friend Dija, of Aline Sitoe Diatta, a Senegalese hero of colonial resistance who led a boycott against the French government's seizure of rice harvests during World War II and died in prison for her efforts. "The art I produce is an attempt to build another bridge between these [groups of] people that are actually one people -- that were separated by history and slavery and the colonial era," Diop said.

On the topic of French misdeeds in Senegal, France has officially confirmed the handover to its former colony of a historic saber which belonged to the entourage of El-Hadj Oumar Tall, a 19th century warlord and Muslim scholar who conquered an immense territory straddling Senegal, Guinea and Mali, and fought against the French colonial army. France will follow this up with the upcoming restitution of 26 works of art belonging to the kings of Abomey in Benin and currently housed at the Quai Branly-Jacques Chirac Museum in Paris. Looks like the restitution is finally being concretized.


MUSIC

Remember when I prophesied (yes, prophesied) that Mr Eazi would become the Jay-Z of Africa? Well the award-winning artist has just announced the launch, in partnership with lead investor 88mph, of a $20 million Africa Music Fund (AMF) through which he wants to create a new funding model for music artists on the continent. Selected artists will be given funds upfront based on their existing and projected streaming revenue, so that they can expand their catalog of music content. The investment will then be paid back in installments as the artist's earnings start to rise. Does this sound familiar? Yes, this is exactly the same model as TradeDepot’s new credit facility for informal merchants that we just talked about. Digital tools now allow knowledgeable investors like Mr Eazi to extrapolate the future growth of an artist from precise metrics such as streaming revenue, YouTube views, or social media data, so that he can provide that artist with the money he or she needs to scale their production. And because money is only one aspect, AMF also plans to support its artists grow their audience by helping them book shows and distributing their music on its upcoming platform Cinch Distro, developed in partnership with music technology company Vydia

And the audience is showing up. OkayAfrica has a great article on the rise of stan culture in Afrobeats. The term “stan” was coined by Eminem in 2000 to refer to an excessive form of fandom. Since then, social media democratized "stanning," which now simply refers to a group of loyal fans who may not necessarily be that obsessive (you may have heard of K Pop Stans’ recent foray into political activism). Read the article for more on D’Banj’s Koko movement (rape allegation still pending, let’s not forget), 2Face's "African Queens", P-Square's "Omoges", Korede Bello's Belovers, Olamide’s "YBNL Gang", Davido's "HKN Gang," Yemi Alade's "Warriors," Burna Boy's "Outsiders", Naira Marley's "Marlians," and, most powerful of all, Wizkid’s “Wizkid FC”. 


SPORTS BUSINESS

Nigerian-born mixed martial artist Kamaru Usman beat Jorge Masvidal in Abu Dhabi last weekend to retain his welterweight championship belt, delighting fans and even prompting the Nigerian President to send him a congratulatory message. Usman is the UFC’s first ever champion from Africa, and he remains unbeaten after 16 bouts. The dominance of Usman and of his compatriot, New Zealand-based middleweight champion Israel Adesanya, is now leading more Nigerians to look into MMA, despite the current lack of structure for the sport in the country.

French Development Agency (AFD) continues to roll out its Sport and Development initiative, which finances micro-projects across Africa. These initiatives must be supported by small French associations in partnership with local actors. The second call for proposals is open until September 30, 2020. AFD also just released a new magazine dedicated to women in sports titled Women Sports Africa.


BROADCAST

As Bundesliga, La Liga, Premier League and Serie A returned last month, sports streaming surged to pre-COVID level across Europe, according to Conviva, returning to about 30% of total viewing time, up from 2% at the height of the pandemic. However in Nigeria, MultiChoice is still considering not renewing its license for Premier League and other sports rights, which have become overpriced in the tough economic environment. MultiChoice used to be able to buy sports rights in bulk for the whole continent, until the now-defunct HiTV came into the market and argued that the Nigerian rights should be sold separately. However, this proved unsustainable. Should MultiChoice decide not to renew its EPL rights, it would open the door for competing bids from Pay-TV operator StarTimes or from public free-to-air channel NTA, although it seems improbable that either of them could come up with anything close to the $250 million last paid by MultiChoice for the Premier League.

One piece of content that MultiChoice Nigeria is unlikely to let go of any time soon is Big Brother Naija, which premiered yesterday and swiftly took over social media. The online auditions, conducted in May, received more than 30,000 applications. If you are curious about the 20 housemates who made the cut, head over here. They will be fighting it out over the next 10 weeks for $220,000 worth of gifts. According to their enlightening profiles, I would say that about 97% of them promise to bring either “fun” or “drama” to the house, while some 74% are interested in “the money”. Get ready.

Finally, Mo Abudu has announced that her EbonyLife TV channel will no longer be broadcast on Multichoice’s DStv satellite platform. This means that Abudu is essentially shutting down her linear broadcast business (which had reportedly been struggling for years) and focusing fully on her production activity. All her current and future content will now move to her VOD platform EbonyLife ON, and of course to Netflix, with which she recently signed a major deal


VOD

Comcast-NBCU’s VOD service Peacock launched in the US last week, and with that, the global streaming wars’ fight card is complete. Coming last to the market after competitors HBO Max, Disney+, Hulu, Amazon Prime, and of course Netflix, Peacock is differentiating itself by its ad-supported model (AVOD), backed up by live sports.

I have talked in previous editions of HUSTLE & FLOW about the huge potential appeal of both the AVOD model and of live sport streaming in Africa. Well, the second one is about to get tested as Showmax has launched Showmax Pro, which bundles the existing Showmax service with music and news channels, as well as live sport from SuperSport. Showmax Pro, which has begun rolling out in Kenya and Nigeria and will go live across sub-Saharan Africa within the next few weeks, features all Premier League, Serie A, La Liga and PSL games, IAAF Athletics, professional boxing, the world’s biggest marathons, and more. Now this is starting to look like proper competition for Netflix. Showmax didn’t stop there and also announced new investments in local content, although these seem limited to South Africa at the moment. 

Meanwhile, Netflix has released its global Q2 results, which showed the addition of 10 million new subscribers in the past 3 months, bringing its total footprint to 193 million. Netflix has repeatedly cautioned that it might not be able to maintain this momentum throughout the year, forecasting “only” 7.5 million additional subscribers for the second quarter. This would nevertheless bring the streamer’s global audience above the 200 million subscriber mark, which is a staggering number. Besides its considerable head start in terms of reach, Netflix also finds itself in the enviable position of not having to play catch up on Black content, contrary to its competitors who are now scrambling to “diversify” their library. The New York Times has the fascinating story of how that came to be. It may have helped a little that Chief Content Officer Ted Sarandos, who was just named Co-CEO, happens to be married to a Black woman. And when it comes to Africa, YNaija has an interview with Netflix execs Ben Adamasun and Dorothy Ghettuba in which they share some insights about the way the streamer approaches partnering with local producers, which it often does as early as the pitch phase, to develop authentic local content that can travel.


FILM

The Cinema Exhibitors Association of Nigeria has appealed to the federal government and President Muhammadu Buhari to include the cinema sector in its financial intervention plans to prevent an “imminent collapse,” and to speedily allow cinemas to reopen in line with the approved reopening of air travel, arguing that both activities present similar health and safety challenges. Like in many other countries, the Nigerian film sector came to a complete stop in March. Among the numerous negative impacts of the lockdown is the build up of a substantial backlog of unreleased films, in a country that normally produces up to 50 movies a week. Pre-COVID, some of the most anticipated films of the year were, interestingly, remakes of 1990s Nollywood classics such as Domitilla, Glamour Girls, Rattlesnake, and Nneka the Pretty SerpentQuartz has a good article about this new trend, which follows the huge success last year of Living In Bondage: Breaking Free, a sequel to its 1992 original.


CONTENT DEVELOPMENT

Meanwhile in Hollywood, African projects and talents continue to gain ground. Director Gina Prince-Bythewood is now attached to direct Viola Davis in The Woman King, inspired by the 18th century Dahomey Kingdom’s all-female military unit known as the Amazons, which fought against the French and neighboring tribes. Apple has signed a first-look deal with Idris Elba and his production company Green Door Pictures to produce series and films for its platform Apple TV+. And finally, Ghana-born multi-disciplinary artist Blitz Bazawule has signed with leading talent agency CAA. Bazawule’s feature directorial debut, The Burial of Kojo, was acquired by Netflix through Ava DuVernay’s Array Films. His work is also featured prominently in the upcoming Beyonce visual album Black Is King, which will debut internationally on July 31 on Disney+, and in Africa on Mnet and Canal+ Afrique.


CONTENT DISTRIBUTION

Acomart TV, a new platform that brands itself as “the first-ever virtual screening room exclusively for Afrocentric films and TV shows” kicked off a few days ago. Producers can now upload their content to the platform to promote it to potential buyers. Acomart says it currently has over 15,000 hours of film and TV series content from Kenya, Ghana, Nigeria, Uganda, Cameroon and South Africa available for licensing. 


SOCIAL MEDIA

Is TikTok’s reign already over? Facebook is scheduled to launch Instagram Reels, its answer to TikTok, in a matter of weeks in the US and more than 50 other countries, after piloting it in BrazilFrance, Germany, and India. The global launch, which has been in the works for over a year, comes as TikTok is facing scrutiny from Washington over its handling of user data. Like TikTok, Instagram Reels lets users make and share 15-second video clips set to a vast catalog of music, as well as borrow and remix audio from other people's videos. May the best social media giant win.


VIDEO GAME

And to wrap up this bi-weekly summer edition of HUSTLE & FLOW, I recommend any reader interested in the African video game space to watch Africa in Colors’ excellent webinar (in English and French) on the topic. At the speakers explained, this is a sector with tremendous potential in Africa but where everything still remains to be done, from growing and measuring audiences (the lack of market data is a challenge), to building schools and infrastructure with the support of governments, and creating flexible business models based on diversified revenue streams, including outsourcing from global studios.

HUSTLE & FLOW #20: Geographical Indication could protect Africa’s traditional IP, Afcon postponed to 2022, the Oscars welcome new African members, and more

Dear colleagues and friends,

2020 is certainly the gift that keeps on giving. Over the 4th of July weekend, a providential Black personality with global influence has emerged to save Americans from an uninspiring choice at the ballot next November. Unfortunately, it’s not Michelle Obama but Kanye West, who announced his candidacy for the presidential elections on Saturday. It doesn't come as a complete surprise as Kanye had already threatened to run last year (but was aiming for 2024). Democrats are now concerned that Kanye will pull a Nader and cost them the Presidency, to the benefit of the rapper’s erratic soul brother and current occupant of the White House. Seems like we haven’t reached the depths of the absurd yet. 

Meanwhile in Ethiopia, popular Oromo singer and activist Hachalu Hundesa was shot dead last week, sparking protests from outraged fans and prompting the government to shut down the internet. This is not the first time that Ethiopia’s leadership resorts to this tactic to quell dissent, which is not a good look at a time where the country is purportedly opening up. It is also very expensive. In 2019, a similar two-week blackout is estimated to have cost Ethiopia $66.87 million.

This week in HUSTLE & FLOW, I’ll talk about how a type of legal certification called “Geographical indication” could be the way to protect Africa’s IP over its traditional crafts such as Ghana’s kente cloth, how the postponement of the African Cup of Nations to 2022 may disadvantage African teams at the World Cup, who are the African artists who have been invited to join the Academy of Motion Pictures this year, and more.

Also, as my readers in the western hemisphere are preparing to take some time off over the summer, I’ll temporarily reduce the frequency of HUSTLE & FLOW to one edition every other week until the end of August. This will also give me a little bit more time to absorb your great feedback and reflect on new ways to continue serving this community. 

Please continue to reach out at marie@restless.global, to consult past editions at www.restless.global/hustleflow, and to subscribe here!

Happy reading to all,

 

Marie

 

COVID IMPACT 

Speaking to the BBC’s Business Daily podcast, Moses Babatope, co-founder of Nigeria’s largest cinema chain FilmHouse, estimates the loss of revenue over the past 5 months at $13 million for the Nigerian film sector and $50 million for the Nigerian creative industries as a whole, with 50 to 150,000 jobs at stake, while PwC’s Chijioke Uwaegbute believes the total loss could eventually reach up to $200 million. HEVA Fund’s George Gachara has also spoken out about the shock that the pandemic has caused to the fragile East African creative ecosystem.

As the scale of the impact on the African creative sector becomes clearer, the rescue and support measures that have been announced so far seem clearly insufficient. More recently, the Goethe Institut has launched a $3.4 million support fund for African creative and cultural organizations impacted by the pandemic. These approved organizations will be able to access up to $28,000 in funding for the September-December 2020 period. Meanwhile, the Africa Technology and Creative Group has launched the 'ATCG COVID-19 Response for African Creative Industries Fund', which seeks to raise donations to support creatives across Africa who have lost their income source due to the pandemic or are looking for innovation support to test out new ideas or create new COVID-related projects. Applicants can receive a maximum grant of $500 or innovation support up to $2,000. 

However, as Aubrey Hruby and Roberta Annan write in The Africa Report, the long term trends (rising popularity of African music, film and fashion, fast digitalization, decreasing data costs, interest from companies like Netflix and Universal Music, to which I would add the new global Black empowerment movement that is changing the perception around Black content) continue to support the investment thesis in Africa’s creative economy. I shared more of my thoughts on this topic (and in French for once) on the panel organized by Africa in Colors last week.


INTERNET INFRASTRUCTURE

Africa Data Centres, part of the Liquid Telecom Group, has consolidated its position as Africa’s largest carrier-neutral data center provider by acquiring a major site in Johannesburg from Standard Bank. The facility is “widely recognized as the most prestigious and highly specified data center anywhere in Africa, offering world-leading levels of security, resilience and capacity”. 

Paris-based content and technology provider Summview has chosen Rack Center to host its services in Nigeria. Summview specializes in the development of applications and multimedia services for smartphones, tablets, connected TVs, IPTV and OTT, such as EbonyLife TV’s VOD platform. Rack Center will provide the company with a direct connection to the Internet Exchange Point of Nigeria, over 35 of the major carriers and ISPs and all five undersea cables serving the South Atlantic coast of Africa. 


MOBILE

The Ethiopian Communications Commission has announced that it has received twelve bids for the country’s two available telecommunication licenses, including nine from telcos (The Global Partnership for Ethiopia (a consortium made of Vodafone, Vodacom, and Safaricom), Etisalat, Axian, MTN, Orange, Saudi Telecom Company, Telkom SA, Liquid Telecom, Snail Mobile), two from non-telcos and one incomplete submission. The Global Partnership for Ethiopia is the clear favorite, although others likely made very compelling cases as well. For more on this, this Jeune Afrique article digs into the value proposition of several of the bidders (in French and behind the paywall).

In South Africa, MTN has called for the release of additional spectrum in order to enable its implementation of its 5G network expansion plans, which aim to cover 10 million people within 12 months. Authorities in South Africa have made temporary spectrum available during the lockdown, but have not yet allocated permanent spectrum. 


E-COMMERCE

Chinese-owned startup OPay, which had been aggressively pursuing a super app strategy in Nigeria, is putting several of its verticals “on pause”, including its ride-hailing services (ORide and OCar) and its logistics delivery service (OExpress). Just last year, OPay had raised a massive $170 million round of funding, but it proved to be no match for the current “harsh business conditions” which include a global pandemic, a lockdown, as well as a government ban on motorcycle taxis. OPay plans to focus on its payment solutions, which it claims are profitable, and on growing its e-commerce operations. 

With Whatsapp payments now operational in Brazil, an Africa launch cannot be far away. Although Facebook’s payment platform is likely to be a hit with sellers and consumers alike, the risk is that it might make some homegrown African fintech solutions redundant. Nigerian fintech startup Carbon, however, has already anticipated this moment and is now positioning itself as a potential future partner for the social media giant. The startup’s keyboard-based Carbon Express solution allows users to perform financial transactions within any conversation on their mobile devices, and already works on Facebook, Instagram, Whatsapp, and Twitter. Facebook typically collaborates with local partners to facilitate its services in different countries, so working with Carbon could be a convenient way for the platform to connect with the Nigerian financial ecosystem. That is not the first smart move from Carbon, who is also one of few private companies in Africa that voluntarily releases and discusses its financial reports. All the way back in 2013, when co-founders Chijioke and Ngozi Dozie launched the first incarnation of their lending product, they made the bold choice of commissioning a satirical ad featuring the crooked Nigerian pastor character from my show (spoiler alert: that didn’t quite work). Those ads have now disappeared from the internet, but click here for a taste of Pastor Chinedu and his Desperately Single and Bitterly Married Seminar.


FASHION

Vogue highlights Industrie Africa this week, a two-year-old platform dubbed the “wikipedia of young African designers” which showcases a directory of over 80 brands from 24 different African countries. Already a solid fashion content destination, in May 2020 Industrie Africa went one step further by launching an online store, with a catalog available for worldwide delivery thanks to a partnership with the ubiquitous DHL. Industrie Africa is the brainchild of Tanzanian Parsons School of Design graduate Nisha Kanabar who worked in fashion publishing for a decade across various markets before founding her own venture.

Last week I talked about Vlisco’s wax prints and Nigeria’s aso oke. As an example of IA’s great content, one of its recent in-depth features digs into the history and symbolism of kente, Ghana’s traditional fabric, and why its use by some members of the US Democratic Party to demonstrate solidarity with Black America a few weeks ago irked many. Writer Sefa Gohoho Boatin also exposes the apparition of fake printed “kente” cloth from China (the real kente is woven by master craftsmen) and recent efforts to patent or protect Ghana’s intellectual property over the cloth, with one option being “Geographical Indication”, a label that ties the production of a particular item to its region of origin, just like it is done for champagne, cognac, or even South African rooibos tea. Geographical Indication could be used to protect many of Africa’s traditional products and crafts, and efforts to implement it across the continent should be backed by development institutions that have a mandate to support the African Creative Industries.


VISUAL ARTS

The couple of (possibly looted) Igbo sculptures presented at Christie’s Paris’ June 29 auction have sold slightly below their estimated price for $239,232 to an online bidder. If it’s any consolation, the Nigerian Urhobo sculpture which was on sale for around $1 million did not find any takers. For the French speakers among you, Le Monde has the story here.


LITERATURE

Nigerian writer Innocent Chizaram Ilo has won the Commonwealth Prize Short Story prize (Africa) for When a Woman Renounces Motherhood, which can be read in full on Granta’s website. At 23, Ilo is the youngest-ever writer to be awarded the Africa region prize. 


MUSIC

Three African artists are among the winners of this year’s BET awards, which took place last Monday. Nigeria’s Burna Boy confirms that 2020 is his year by winning Best International Act, while Zimbabwe’s Sha Sha won the Viewer’s Choice award for Best International Act, and Brown Skin Girl, WizKid’s collabo with Beyoncé, her daughter Blue Ivy, and rapper Saint Jhn, won the BET Her Award.

Nigerian record label Mavin Records has partnered with Seattle-based music licensing startup SyncFloor to bring the label’s catalog to more potential sync buyers. Mavin was launched in 2012 by star producer Don Jazzy, notorious for working briefly with Kanye West, Jay-Z and Beyoncé, and for over a decade with D’Banj, with whom he used to own Mo’ Hits Records. Mavin Records, which secured major investment from Kupanda Holdings (backed by TPG Growth) last year to back an ambitious growth strategy, represents local artists such as Johnny Drille, Di’ja, D’Prince and Korede Bello, whose breakout hit Do Like That has racked up over 200 million YouTube views. I did a quick test on SyncFloor, whose tagline is “Finding Music Naturally”, by searching for the key word “Nigerian”. The response I got: “We noticed the core genre in your search is underground.” Hmm.


SPORTS BUSINESS

The Africa Cup of Nations, which was set to take place in January 2021 in Cameroon, has been postponed to January 2022 by the Confederation of African Football as a result of the pandemic, while the women's version of the tournament has been cancelled. This means that the Afcon will now take place in the same year as the World Cup, which risks disadvantaging African teams at the World Cup by giving them an extended season of competition. 

Multichoice’s SuperSport is reportedly considering not renewing the broadcasting rights for the English Premier League and the UEFA Champions League, for which it pays around $250 million and $100 million respectively, citing rising prices and an unfavorable economic environment. Both properties are currently barely breaking even on the platform, according to SuperSport executives. 


BROADCAST

The Independent Broadcasters Association of Nigeria has called for the Nigerian National Broadcasting Commission to put on hold the implementation of its controversial new Broadcasting Code, which seeks to ban content exclusivity in the country, to make way for a fresh process of wide-ranging stakeholder consultations. Meanwhile, the NBC has indicated that it would move forward with the implementation. The arm-wrestling continues.

Still in Nigeria, Information Minister Lai Mohammed said that the still-ongoing digital switchover is expected to eventually generate more than $1 billion, mostly from spectrum sales, and more than 1 million jobs in the areas of set-top-box manufacturing, content production and advertising services. After repeated delays, the digital switchover is currently completed in only 5 of Nigeria’s 36 states. No word about the impact of COVID on these plans, despite the fact that the broadcast industry has been hard hit globally by the loss of advertising revenue. In Kenya, for example, Nation Media Group has had to let go of 175 employees.

However in Ivory Coast, which has experienced a less severe lockdown than most and whose broadcast market has recently been energized by the launch of new DTT channels, advertising revenues have grown 37.7% in May 2020 compared to May 2019. TV advertising revenues are still twice lower in Ivory Coast than in Senegal though, despite Ivory Coast’s GDP being double the one of Senegal.


FILM

The Academy of Motion Picture Arts and Sciences (whose members vote for the Oscars) has invited 819 new artists and executives to join its class of 2020, including several Africans such as Kenyan documentary producer Toni Kamau, Nigerian actress and director Genevieve Nnaji, Zimbabwean post-production coordinator Sue-Ellen Chitunya, Kenyan short film director Wanjiru Njendu, British-Nigerian actress and singer Cynthia Erivo, Nigerian director Akin Omotoso, British-Ghanaian actor David Gyasi, French-Senegalese director Mati Diop, Mozambican director Inadelso Cossa, Egyptian-American short film director Miranda Yousef, French-Malian director Ladj Ly, and Sudanese documentary filmmaker Hajooj Kuka. Congratulations to all new Oscar voters, many of whom have already been showcased in this newsletter for their groundbreaking work.

Disney-owned Searchlight pictures has signed on to produce a movie based on the improbable life of “Black Mozart” Chevalier de Saint-George, who was born the illegitimate son of an African slave and a white planter in the French Caribbean colony of Guadeloupe and rose to become a champion fencer, classical composer, virtuoso violinist, and conductor of the leading symphony orchestra in Paris. The project was pitched by Atlanta writer Stefani Robinson and will be helmed by Jamaican-born Watchmen director Stephen Williams. Do I wish that French producers and financiers would invest that boldly in projects that reflect on their own colonial history? Yes I do. But there is also no question that Disney will be more effective in bringing the story of Saint-George to a mass audience. A note to African writers: now is the time to polish all these African historical hero projects that have been sitting in your drawers for years.


VOD

Netflix has tapped Ghanaian-American Marketing Maven Bozoma Saint John as its new Chief Marketing Officer. Saint John is leaving entertainment company Endeavor, where she had been CMO since 2018. Previously she held senior brand and marketing positions at Uber, Apple Music and Pepsi. Saint John has been involved behind-the-scenes in shaping Ghana’s roots tourism strategy and in bringing Black American stars to the country for its Year of the Return celebrations last year. Just before the global lockdown, she took her Endeavor team to Accra to explore business opportunities and collaborations with local creatives. Her appointment at Netflix is great news as it can only strengthen the streamer’s current push into African content. 


CONTENT PRODUCTION

I’ve already talked about Yvonne Orji’s HBO special Momma, I Made It, which is getting great reviews in the US. I must admit that I have not yet watched it myself, but this thought piece from writer Damilola Oyedele seems to echo the ambivalent feelings of Nigerians on the ground for Orji’s comedy show. Oyedele talks about a certain type of “performative Nigerianness” plaguing some Nigerians who have been away from their home country for so long that they have partially embraced the American view of it, and might even unknowingly contribute to perpetuating certain stereotypes. “It is crucial to make clear that Nigerian-Americans are one type of Nigerian, one small slice of the experience of being Nigerian,” writes Oyedele. “There are so many other ways to be Nigerian. Some Nigerians continue to remain in Nigeria, with the means to immigrate but with no interest to do so. Some were born in Togo. Others have lived in countries like Tanzania, South Africa, Germany, Nigeria, the UK, and the US. Some, like me, migrated in their 20s for education and remain here as reluctant economic migrants. All these experiences are different. Their stories matter. And these stories must not be silenced by a caricatured story of a Nigeria that doesn’t even exist anymore.” This is valid for Africa as a whole.

HUSTLE & FLOW #19: African Art Sells, Beyoncé announces Black is King, #AfricaOnNetflix is #AdCampaignGoals, and more

Dear colleagues and friends,

As the Black Lives Matter movement continues to send ripples through the world in general and the Entertainment industry in particular (more in this edition), Nigeria is fighting its own fight against rape culture, which is a different but not unrelated topic.

As Quartz reports, a concerning 717 cases of rape have been registered with the police in Nigeria since January, leading to outrage and protests, and pushing state governors to declare a state of emergency on the issue. More recently, accusations of sexual misconduct have even rocked the more progressive worlds of tech, after a woman called out the CEO of Lagos-based ISP Tizeti for sexual harrassment, and music, with rape allegations made by Seyitan Babatayo against Afrobeats superstar Dbanj. The story of how Babatayo was arrested and intimidated by the police after she spoke out is deeply disturbing.

And that’s where the two issues intersect. Where Black men are at high risk of police or gun violence in the US and in other countries worldwide, the type of violence exercised on Black women often takes other shapes such as sexual violence or gaslighting. In another shocking reveal last week, a group of former employees of OkayAfrica, a prominent platform for African culture, came out to denounce CEO Abiola Oke’s abusive treatment of women in the workplace. Oke resigned from his post two days later. This wokeness wave might very well turn into a tsunami.

This week in HUSTLE & FLOW, I’ll talk about two African art auctions including a very controversial one, Queen Bey’s surprise announcement of her upcoming new visual album Black is King, Netflix’s gorgeous #AfricaOnNetflix campaign, and more. 

If you have received this newsletter from a colleague, please make sure to subscribe here. Previous editions of HUSTLE & FLOW are available on my website at www.restless.global/hustleflow. And as always, don’t hesitate to reach out with your comments, questions, tips, or Zoom call invites at marie@restless.global.

Happy reading to all,


Marie


INTERNET INFRASTRUCTURE

The Internet Society has released an update to its 2012 original report on Internet Exchange Points (IXPs) in Kenya and Nigeria. Internet Exchange Points (IXPs), by enabling local traffic exchange and access to content, are a key element to the development of fast and affordable local internet ecosystems. In 2012, which coincidentally was the year Jason Njoku launched IrokoTV and I launched Buni.tv, approximately 30% of internet traffic in both Nigeria and Kenya was localized. Now it is 70%. “The growth of the IXPs in each country was exponential, as were the cost savings”, says the report, with the cost of 500BM of prepaid data dropping from $5.92 to $2.92 in Kenya and from $12.75 (!) to $3.37 in Nigeria. In 2012, Google Global Cache was the only Content Delivery Network available locally, whereas the local CDN ecosystem now includes Akamai, Amazon Web Services, Cloudflare, Facebook, Google Global Cache, Google Edge, Limelight, Microsoft and Netflix. As you know this is a space I am very bullish about.


MOBILE

MTN Group has announced that it has topped 100 million active data customers for the first time. This corresponds to 39% of the telco’s total subscriber base of 257 million across its 21 markets in Africa and the Middle East. However, about 60% of rural populations in Africa remain unconnected. To support smartphone adoption, in 2019 MTN distributed 675,000 cheap, data-enabled handsets across 12 markets, launched a digital literacy programme, and reduced entry-level data rates across its footprint by 60%.

In South Africa, MTN and competitors Telkom and Vodacom are gearing up for a “Battle Royale” over 5G spectrum, which is largely unassigned in the country but that the regulator, ICASA, has promised to auction by the end of the year. Vodacom currently has the lead since it switched on Africa’s first live 5G mobile network in May in Johannesburg, Pretoria and Cape Town, thanks to temporary additional spectrum made available by ICASA during the lockdown. But Telkom is reportedly so focused on implementing its 5G plans that it decided not to pay its shareholders any dividends and reinvest instead in acquiring 5G spectrum and building related infrastructure.


E-COMMERCE

Nigerian digital payment startup Paystack has launched Paystack Commerce, “a collection of free tools to help African brands sell more physical and digital products online”. The new features and the demo video are beautifully done. In 2016, Paystack was the first startup from Nigeria to enter Y Combinator and it has since raised $10 million in funding from Stripe, Tencent and Visa.

I’ve talked about the recent forays of Nigerian payment companies into e-commerce in several previous editions of HUSTLE & FLOW. Techcabal has a very good in-depth piece on the topic this week, which explains how the context has dramatically evolved since the first generation of (failed) Nigerian e-commerce startups, namely Jumia and Konga. Since then, while Nigeria’s economic macros have weakened, underlying challenges such as payments and logistics are being solved, with a little help from COVID. Merchants have also changed attitudes and expectations and now prioritize a direct relationship with their customers, which benefits solutions proposed by fintech startups versus global e-commerce platforms. How these new, fintech-driven local solutions will fare once Facebook Pay arrives on the market is another question.


FASHION

Are virtual fashion models here to stay? This week serial innovator Sarah Diouf, in partnership with Ghanaian studio Balm.labs, launched Tongoro’s digital magazine MADE, which includes an editorial on the future of fashion and a photo spread featuring digital models. I have a lot of respect for Sarah’s work at every level, and props to her for continuously pushing the envelope. However I have to say that I find these giant and vacant-eyed virtual models quite creepy. One great thing about Anifa Mvuemba’s 3D fashion show for Hanifa was that she used realistic female bodies to model the clothes (with no face, probably a smart choice).

Lagos-born LVMH Prize winner Kenneth Ize has been tapped by Karl Lagerfeld, the late designer’s namesake brand, to design a capsule collection that will be released in April 2021. Ize, who is the first Black designer to ever collaborate with the brand, will likely bring his trademark Nigerian weaving technique aso oke to the collection. ”Our vision is to combine Karl’s Parisian-chic aesthetic with elements of traditional African artistry,” he said. This already sounds like a winner.

Talking about African fabrics, it is now a reasonably well-known fact that African wax prints are not, indeed, African. If this information has passed you by, the BBC has a nicely illustrated history of the wax print, from its origins in Indonesia to its current design and production in the Netherlands, most famously by Dutch company Vlisco, and in Asia. The BBC article, however, misses the last chapter of this story. In January this year, Afreximbank signed a term sheet with Kojo Annan’s Made In Africa Inc. to provide the company with a $190 million facility to finance the acquisition of Vlisco. If the deal is confirmed in this post-COVID world, it would bring the wax print under African ownership - a pretty major symbol.


VISUAL ARTS

The pressure is mounting on the controversial auction of African artifacts taking place today at Christie’s in Paris, which includes a pair of sculptures representing Igbo Alusi deities. The artifacts were initially bought by French collector Jacques Kerchache in 1968, during Nigeria’s Biafra war, and are estimated for sale between $280,769 - $393,077. Nigerian scholars and government officials, as well as more than 2,000 people who signed a petition titled "Stop Christie's from selling STOLEN Igbo Sculptures. #BlackArtsMatter”, question how these sculptures could have been legally acquired when the region they originate from was literally a war zone at the time. Which, you must admit, is a very good question. At the time of writing, the sale was going on as planned, with the most expensive item - another Nigerian sculpture - expected to fetch up to $1 million.

More auction news, with last Wednesday’s sale by Piasa of 172 contemporary artworks by 106 artists from 19 African countries. Le Monde highlights some of the works here (in French), which include paintings by DRC’s Cheri Samba and Eddy Kamuanga, Nigeria’s Wole Lagunju, or Uganda’s Joseph Ntensibe, whose Tropical Garden 4 (my favorite) more than doubled its estimate to sell for 67,600 euros. But many other works from well-known artists were far more affordable: you could have walked away with a Malik Sidibe print for 3,640 euros or a Yinka Shonibare lithograph for 1,560 euros.

Talking about Yinka Shonibare, the British-Nigerian superstar of the African contemporary art scene has had to adapt his Guest Projects residency program, which he normally runs from his London studio, to today’s socially-distanced world. The call for proposals for his newly-minted Guest Projects Digital residency is open until July 12th.


MUSIC

Stop the presses -- yesterday Beyoncé unveiled the trailer for Black is King, the new visual album that she will be releasing on Disney+ on July 31st. Black is King is based on music from The Lion King: The Gift, the Lion King remake soundtrack album produced by Beyoncé and featuring top African artists like Wizkid, Burna Boy, Mr Eazy, Tiwa Savage and Yemi Alade. I loved The Gift so much that I had to stop listening to it because I couldn’t get it out of my head. The visual album, which is set to feature appearances by some of the soundtrack artists, is described by Disney as "a celebratory memoir for the world on the Black experience. The film is a story for the ages that informs and rebuilds the present. A reunion of cultures and shared generational beliefs. A story of how the people left most broken have an extraordinary gift and a purposeful future." Well played Beyoncé, and well played Disney. That’s hitting the zeitgeist’s bullseye.

In the past few years, interactions between the global and African music industries have been growing at a fast rate (film and TV are next, sit tight and keep reading). Pulse has an in-depth explainer this week on the evolution of the global music market and how Africa fits into it, which is a good read especially if you are an investor interested in the space and looking for where to start. As a rule, what I tell my clients is: platform-building is for global players that have scale and unlimited resources. Anything that requires deep on-the-ground knowledge (talent spotting and development, content creation, tech features plugging a gap between local markets and global solutions - for example in payments or data collection and analytics, ability to leverage telcos relationships) are opportunities for investment.


BROADCAST

Successful Ivorian advertising and media entrepreneur Fabrice Sawegnon has launched his first TV station, Life TV, positioned as a general entertainment channel focusing on local content. Life TV is one of five free-to-air stations to win a broadcast license to exploit Ivory Coast’s new Digital Terrestrial Television (DTT - TNT in French) market, after Canal Plus’ A+ and RTI3. It is owned by Sawegnon’s Voodoo Group and French channel M6 which holds a 12,5% share, down from the 33% that were initially announced for M6 in 2017. Check out HUSTLE & FLOW #2 for an explainer on the misdirected enthusiasm of French broadcasters towards Francophone Africa’s DTT space.

ViacomCBS has promoted Monde Twala, senior vp of ViacomCBS Networks Africa, editorial and general manager, to the additional role of peer lead for BET International, tasked with growing the BET brand outside the U.S. Despite its positioning, cultural relevance, and worldwide reach, BET (Black Entertainment Television for the non-initiated) has so far been pretty tame when it comes to leveraging the global Black experience to expand its business worldwide. With the emergence of a global Black consciousness now dominating the headlines, it seems obvious that BET has missed a big opportunity. Perhaps it is not too late to course-correct, even though other Hollywood players, including HBO and Netflix, have been much bolder in terms of creating Black content that can drive global conversations.

Finally, a recently released report by Accenture shows that MultiChoice invested just over $2.1 billion in Nigeria between 2015 and 2019, including $400 million in the development of local talents within the creative industry. I would love to see the detail of what they include in that last number.


FILM

Realness has announced the selection for its 5th screenwriter’s residency, which will take place online from July 1st to September 1st, 2020. In the five years since its inception, Realness has supported 30 feature film projects from across Africa, the first two to be produced going on to screen at Venice, TIFF, Sundance, IFFR and Berlinale.

Moonlight director and Oscar-winner Barry Jenkins will be writing the film adaptation of the BAFTA and Oscar nominated documentary Virunga for Netflix, which Leonardo DiCaprio will executive produce. According to Netflix, "the film tells the story of those who worked to save one of the world’s most bio-diverse parks & the endangered gorillas inside." I’ll be interested to see where this project ends up filming (Rwanda, Kenya?).


VOD

There is no stopping Netflix’s methodical and enthusiastic advances in Africa. Last week the streamer gave other media brands a lesson in aspirational African marketing when it released its new #AfricaOnNetflix campaign, a beautiful video featuring some of the biggest African stars with content on the platform. The promotional content quickly went viral of course, with the stars themselves actively sharing the material on their pages. In a nice - but also strategic - move, the campaign also includes directors, such as Nosipho Dumisa or Kunle Afolayan, writers like Malenga Mulendema (Mama K’s Team 4), and Netflix’s own executives Dorothy Ghettuba and Ben Amadasun, both veterans of the African TV space whom everybody in the industry knows and respects. This signals to all African creatives that Netflix is the place where they can strive. I’ve said this before, but the goodwill that is being built here will be very hard for other players to compete against when they eventually come to the continent.

Talking about Netflix competitors, I’ve been hearing that Amazon Prime Video is looking for its first African projects. Meanwhile, it is gearing up to launch a linear TV offering in its home market of the US, which is not a bad idea considering that AVOD seems to be taking off, that live sports are one of streaming’s next frontiers, and that Amazon Prime has already established itself as an aggregator of third-parties on-demand channels (HBO, Showtime, etc).


CONTENT PRODUCTION

One of the exciting side effects of the global Black Lives Matter movement is that media companies and financiers are rushing to shift resources toward the production of Black and diverse content. LeBron James' SpringHill Entertainment (behind projects like Netflix's Self Made: Inspired by the Life of Madam C.J. Walker and Top Boyraised $100 million from investors including Elisabeth Murdoch, production company Sister (Chernobyl, Gangs of London), Guggenheim Investments, The University of California's UC Investments and private equity firm SC Holdings, and signed an overall deal for scripted TV with Disney’s ABC Studios. Meanwhile across the pond, the BBC has launched its Creative Diversity Commitment, which will prioritize £100 million of the broadcaster’s existing commissioning budget over three years (from 2021-2024) towards diverse and inclusive content. The BBC will also implement a new mandatory 20% diverse-talent target in all new network commissions from April 2021, and is looking for ways to make concrete changes sooner. This of course is great for all African diaspora talent working in the US or the UK, but I believe that it will also change how studio heads and TV commissioners view Black content in general, including African content.

Remember the Ikorodu Bois, the young Nigerian “mimickers” famous for their bare-bones and hilarious remakes of music videos and movie trailers? Well they are heading to Hollywood. The kids behind the videos, brothers Muiz (15), Malik (10) and Babatunde (23) Sanni and their cousin Fawas Aina (13), received an invitation from Extraction producers the Russo brothers after their homemade remake of the movie’s trailer went viral. Securing US visas and flights for Hollywood-obsessed Nigerian kids in this climate will be another issue though.


ANIMATION

African animation continues to make inroads and lands a prime profile in Forbes this week, which is worth reading in full. The article highlights the key structuring role played these past few years by the African Animation Network (AAN) led by the South African Nick Wilson, who has been tirelessly advocating for African animation for over a decade. Behind-the-scenes support from AAN has helped the emergence of several African talents on the global scene, such as Ridwan Moshood from Nigeria, winner of Cartoon Network Africa's Creative Lab competition with his genius original property Garbage Boy & Trashcan. Also worth noting is the role played by US story consulting company Baboon Animation, which has been working with African creators for years to develop their storytelling skills with great results, and is now partnering with Moshood to launch his new studio Pure Garbage. This is a model to explore for investors interested in the African content space. In recognition for this recent flurry of activity, Africa was supposed to be Annecy Animation Festival’s territory of honor this year, but the showcase has now been postponed to 2021.

Another leading initiative in support of the African digital creative space is Digital Lab Africa, run by Institut Francais. DLA unveiled the nine winners of its fourth edition last week in five categories: immersive realities, video games, music, animation and digital art.


CALL FOR PROPOSAL

And I’ll finish with a global call for proposals, also supported by Institut Francais and by AFD, the French Development Agency. Accès Culture seeks to offer finance and support for cultural projects presented by African and French cultural organizations working in partnership. The projects should encourage cultural cooperation and be oriented around community arts outreach, and the deadline for applications is July 30th, 2020.

HUSTLE & FLOW #18: Orange eyes Nigeria expansion, Decathlon's aggressive Africa strategy, Animation studio Triggerfish opens up in Ireland, and more

Dear colleagues and friends,

Last Friday the world celebrated Juneteenth, an annual holiday commemorating the end of slavery in the United-States. Previously, Juneteenth had been relegated to American-American communities where it was celebrated almost confidentially, while the rest of the country and the world remained blissfully ignorant about it. But thanks to the global Black Lives Matter movement, its meaning now resonates widely, with companies like Twitter and Spotify offering employees a paid day off and efforts currently underway at the US Senate to make Juneteenth a national holiday.

In Africa, the flag of pan-Africanism has been captured by Ghana, which held a memorial for George Floyd and invited African-Americans to “Come home”. Ghana has long courted the descendants of enslaved Africans to “return home”. In 2019, its “Year of the Return” celebrations attracted a number of Black American personalities and even culminated in a naturalization ceremony where over 100 African-Americans and Afro-Caribbeans became Ghanaian citizens. This strategy by Ghana to leverage shared culture and history to attract talents (and money) is nothing short of visionary, and makes Ghana a prime investment destination - I plan to unpack why and how in a future edition of HUSTLE & FLOW.

Meanwhile the new global awareness over systemic racism has also reached South Africa, a country that has so far not distinguished itself favorably on that topic, to say the least. Streaming service Showmax has pulled several films from popular white South African comedian Leon Schuster for review. Schuster’s films have raked in millions at the box office, making him probably the most successful filmmaker in South Africa. Schuster’s oeuvre includes a film in which he uses blackface, and another where he plays a white sangoma.

This week in HUSTLE & FLOW, we have a bit of an Ethiopian theme going on, which is fitting as Ethiopia is one of only two African countries (with Liberia) never to have been colonized. But I’ll also talk about Orange eyeing expansion into Nigeria, sports goods retailer Decathlon’s aggressive Africa strategy, and South African animation studio Triggerfish opening up in Ireland.

Please continue to share HUSTLE & FLOW with your friends and colleagues and to send in comments and contributions at marie@restless.globalSubscribe here to receive this newsletter directly into your inbox every Monday, and head over there to catch up on previous editions.

Happy reading to all,

 

Marie

INTERNET INFRASTRUCTURE

Amazon has added 3,000 new virtual customer service jobs in Johannesburg and Cape Town, bringing its total permanent workforce in South Africa to 7,000 people. The new roles range from customer service associates to technical staff and the employees will be working virtually from home to provide round-the-clock support for Amazon customers in North America and Europe. 

This is just the latest in a series of major moves from the world’s tech giants as they continue to make strategic advances on the continent. As Kofi Yeboah writes on Global Voices this week, Facebook and Google (and to a smaller extent Amazon) are on a race to build Africa’s internet infrastructure and capture the world’s last virgin market. Although these companies have achieved faster, greater results than governments, their dominance in the provision of what has become a public good should be of concern as “Africa is vulnerable to mass mis- and disinformation, market monopolization, exploitation and misuse of personal data”. Besides issues around privacy and data use, there is the question of course of the takeover by the tech giants of huge chunks of countries’ digital economies with the concerned nations not reaping any benefits. In Europe, France has led the charge for a GAFAM tax that would be imposed on revenue accrued inside the country, even if the tech companies are headquartered elsewhere. If handled correctly and in a way that doesn’t dissuade investment, such a tax could be a new and welcome source of revenue for African governments.


MOBILE

According to reports by Reuters, French telco Orange is reportedly exploring ways to enter two of Africa’s biggest markets, Nigeria and South Africa, in the next few months. Orange is France’s largest mobile operator, and its portfolio across 18 countries in the Middle East and Africa is its fastest-growing market. Orange acquired four of Airtel’s units in Africa in 2016 and reportedly considered snapping up Etisalat Nigeria (now 9mobile) in 2017. This comes at a time when MTN Group is pressing on with its plans to dispose of 15% of its 79% stake in MTN Nigeria to local investors. No one knows if MTN Group would be ready to unload more, but it sounds like there is an opportunity there for Orange to slide in. In any case, the news of a potential arrival of Orange on the Nigerian market has sent waves of excitement among industry observers as the French telco certainly would have the weight to cause some serious (positive) disruption.

Meanwhile across the continent in Ethiopia, MTN and Vodacom are reportedly in the process of forming a partnership to bid for one of the country’s new telco licenses. To be continued.


E-COMMERCE

You read it in HUSTLE & FLOW first: Whatsapp is indeed rolling out its payment solution, starting with Brazil. And as I mentioned last week, Whatsapp Business catalog with Facebook Pay is stealthily being tested in Uganda, so we can expect things to move fast from now on. Enabling payments on Whatsapp, but also Facebook and Instagram, will be a game changer for small businesses, artists and creatives across Africa who are already heavy users of these platforms. It also hints at the future development of a “super app” ecosystem on the continent. S&P Global Market Intelligence has an in-depth article about the various models and strategies for super app development which is a must-read if you are interested in this topic.


FASHION

Ethiopia’s burgeoning garment industry has been hard hit by the slowdown in production caused by the COVID crisis, a recent report by the International Labor Organization shows. Managers are concerned about employee retention as mass layoffs loom. However, as many western economies lift their lockdowns and stores reopen, with only 60 COVID-related deaths from a total of 3,630 cases, Ethiopia is well positioned to hit the ground running to fulfill new orders. The Industrial Federation of Textile, Leather, Garment Workers Trade Union has launched a campaign to raise awareness of best health and safety practices in Ethiopian garment factories to limit the risk of a spike as business picks back up.


VISUAL ARTS

London-based gallery TAFETA, which is specialized in modern and contemporary African art, has launched the “SixforSix” initiative which offers the opportunity for collectors to live with up to three pieces from their “SixforSix” collection for six weeks before deciding whether they want to make a purchase. The collection features pieces by Arinze Stanley, Babajide Olatunji, George Osodi and more, priced between $970 and $9700. 

The Dutch government returned a stolen ceremonial 18th-century crown to the Ethiopian government last Thursday. The crown went missing from a church in Ethiopia 21 years ago, and landed in “a suitcase left behind by a guest” in the apartment of Sirak Asfaw, a former Ethiopian refugee who is now a Dutch national. Asfaw waited 21 years to approach the Dutch Ministry of Foreign Affairs to let them know he was in possession of the object. Plot hole you say? We will not learn more about that mysterious guest from that CNN article unfortunately. The issue of the restitution of Africa’s artifacts seems to be gathering momentum though. Quartz continues to proactively cover the topic, publishing a new article this week, while Princeton art history professor Chika Okeke-Agulu called for the cancellation of a forthcoming auction in Paris of two sacred Igbo sculptures taken out of Nigeria during the Biafra war. 


LITERATURE

This week OkayAfrica explores what happens when Nigeria’s vibrant literary scene moves online, as prominent events like Lola Shoneyin’s Ake Festival and Efe Paul Azino’s Lagos International Poetry Festival (LIPFEST) re-imagine themselves as virtual gatherings - and it’s not all bad as the loss of human physical connection is balanced by wider reach. According to the same article, the lockdown has also had a positive effect on local book sales, with bookstores reporting a surge in orders.

Meanwhile for the writers out there, applications for the 2020 Morland African Writing Scholarships will open on July 1st. Besides running this yearly scholarship, the Miles Morland Foundation also supports African writing and African literature through grants to literary festivals in Kenya, Nigeria, Uganda and Somaliland, cultural initiatives in east, west, central and southern Africa, London’s Film Africa festival, the Caine Prize for African Writing, several African educational initiatives and the new Rhodes scholarships for Africans.


MUSIC

Universal Music Group (UMG) opened an office in Casablanca, Morocco, last week, as it seeks to expand its footprint in the MENA region to discover and promote new local talents. In sub-Saharan Africa, UMG already has offices in Abidjan, Lagos and Johannesburg. Two years ago it acquired Kenyan label AI Records, and it announced the launch of Def Jam Africa last month.

I talked last week about Tanzanian Bongo Flava superstar Diamond Platnumz and his mastery of YouTube, which he joined earlier than most other African artists in 2011. Well, a few days ago Platnumz became the first sub-Saharan African singer to reach one billion views on the platform, where he racks up 3.7 million subscribers. And he’s doing even better on Instagram where he has a staggering 9.7 million followers. Platinumz’s new song Quarantine also became viral on Tik Tok. The Tanzanian artist still ranks behind African performers from the diaspora such as Malian-born and Paris-based singer Aya Nakamura who has more than 1.7 billion YouTube views, or Senegalese-American rapper Akon who smashes them both with 3.5 billion views. Akon was also in the news this week but for a completely different reason: the global star and philanthropist announced that it had awarded a $6 billion contract to KE International to build and execute Akon City, his futuristic-cryptocurrency themed metropolis project in Senegal.

If charismatic African artists are the ones attracting the limelight, few know the name of the instrumental producers or “beatmakers” working closely with them to create their viral hits. African Shapers has a great run-down this week (in French) of some of the most talented beatmakers on the continent, from Platnumz’ collaborator Ayo Liser to Ghana’s Killbeatz or Nigeria’s Kel-P, who produced 10 of the 19 songs of Burna Boy’s Grammy nominated album African Giant.


SPORTS BUSINESS

Recession, what recession? French sporting goods retailer Decathlon is staying on track with its aggressive African expansion strategy and opened its second store in Abidjan last week. With over 1,600 stores in 57 countries, Decathlon is the largest sporting goods retailer in the world. In Africa, besides Ivory Coast the company also has stores in Kenya, South Africa, Morocco, Tunisia and Senegal, and its products are available online through a partnership with Jumia. Contrary to France where Decathlon also distributes leading brands such as Nike or Adidas, in Africa it chose to focus only on its own products. 

Decathlon’s steady inroads on the continent are another strong sign that France is particularly well positioned to dominate vast areas of the sports market across Africa. I’ve talked previously about Vivendi Sports’ plans to create, develop and monetize (largely through broadcast rights) new sports leagues - including Afro-European MMA league ARES - across the continent. Earlier this month, ARES announced the signing of former WBO and WBA boxing champion Hassan N’Dam N’Jikam, who joins other high-profile fighters such as Senegalese wrestler Reug Reug, UFC veterans Eric Shelton and Danilo Bellaurdo, former Bellator champion Will Brooks, UFC standouts Nordine Taleb and Juan Adams, and ex-UFC title challenger Wilson Reis. Now, for a bit of inside baseball, or rather inside MMA, website The Body Lock zoomed into screen captures from N’Dam signing video to expose confidential details about his contract. We learn that N’Dam’s base pay is to be $20,000 per fight with a $20,000 bonus in case of a knockout or submission, among other juicy details.


BROADCAST

To continue with our Ethiopia theme this week, Balancing Act’s Russell Southwood looks at the country’s freshly liberalized broadcast market to find out what’s going on. As Russell reports, Ethiopia now counts nearly 20 local channels. Although almost all of them saw their audience grow thanks to the thirst for news about COVID-19, they were also hit hard by the drop in advertising revenue. To add to this contextual challenge, in April the Ethiopian government banned the advertising of alcoholic beverages for health reasons. Local breweries had been an important source of advertising for broadcasters. The tense economic environment has already led to the closure of JTV, one of the country’s new stations, with rumors that at least two others will follow. 

Despite the industry uproar which followed the publication of Nigeria’s new broadcast code last week, the National Broadcasting Commission (NBC) confirmed its intention to break the decades-old monopolistic sports broadcast rights structure in Nigeria, re-affirming in a press conference that its licensees would be banned from acquiring exclusive sports broadcast rights. The first victim of this new regulation would of course be Multichoice, which owns most premium sports broadcast rights in English-speaking Africa. Coincidentally, Multichoice issued a report last week showing that its products and services were 55% cheaper in Nigeria than in most of its other markets on the continent including Ghana, Kenya or South Africa. Despite the country’s size and potential, Multichoice’s Nigeria operations only bring 10.89% to the Group's revenue and $300 million in profit, compared to the $600 million generated in South Africa. Multichoice Nigeria blames challenging market conditions for its underwhelming results.

In South Africa, the SABC is reportedly planning mass layoffs to reduce its staff bill by up to $40 million, in-line with its new operating model which I mentioned last week. Pre-COVID, the embattled national broadcaster had received a $185 million financial bailout from the South African government, but will be prioritizing those funds to pay off creditors, invest in content and maintain its critical broadcast equipment and infrastructure.


FILM

The Durban International Film Festival (DIFF) and Market (DFM), arguably Africa’s leading film rendez-vous which normally takes place every year in July in the South African coastal city, will be taking place virtually in September. Another opportunity to discover African films online is the relaunch of Cinewax’s Online African Film Festival (OAFF) with a Kickstarter launch party on June 24 and the free screening of Kenya’s Likarion Wainana Supa Modo. I mentioned the controversy around the production of this film in last week’s HUSTLE & FLOW - now is your opportunity to watch it.

Kenyan filmmakers have built a true expertise in navigating the complex (and political) world of international film festivals and film funds. The latest one to snag funding is the very talented animator Ng'endo Mukii, who received a script and development grant from the Hubert Bals Fund for her feature debut The Goat Sunday. Also in this year’s HBF Spring Selection are Sudanese director Ali Cherri, Mohamed Rashad from Egypt and Tariq Teguia from Algeria.


VOD

Not a big surprise considering the runaway success of its first season, but South African teen mystery drama Blood & Water was renewed for a second season at Netflix. The streamer’s strategy for its African originals is an interesting one. Indeed, Netflix could have chosen to produce and release both Queen Sono and Blood & Water as 12-episode series, which is the traditional TV format across Africa (except for soaps and telenovelas which have dozens of episodes per season). But by basically cutting the traditional series length in half to release short 6-part seasons, Netflix avoids putting too much pressure on producers for whom these projects are the firsts with truly global ambitions, while giving them more resources to focus on quality. At the same time, this approach also allows Netflix to limit their financial exposure on a new market, and the tactic of ending these short seasons on cliffhangers ensures that demand for a second season will be as strong as possible. 


CONTENT PRODUCTION

Linear broadcasters on the other end need long-running series to fill their many hours of programming. Multichoice’s South African channel M-Net has announced the upcoming release of its new telenovela called Legacy, scheduled for September 2020. The show is described as a cross between HBO's Succession and The Bold and The Beautiful with some Brazilian telenovela undertones. Over the years, M-Net and its various African channels have built a strong expertise in that specific genre, producing successful long-running soaps such as Jacob’s CrossTinsel, or Hotel Majestic


ANIMATION

Award-winning South African animation studio Triggerfish has announced that it will establish its first international production arm in Galway, Ireland. I have been a fan and a friend of Triggerfish since the launch of The XYZ Show in 2009 (there were few of us trying to do African animation at the time), and I was lucky to visit their beautiful Cape Town studio several years ago. The current success of Triggerfish, which launched all the way back in 1996 and is now widely recognized as the best and largest animation studio in Africa, is a study in dogged perseverance. More than ten years ago CEO Stuart Forrest and his team embarked on the seemingly impossible task of producing ambitious animated feature films in South Africa for a fraction of the cost that similar projects would have taken to get made in Europe or the US. The studio’s feature films Adventures in Zambezia (2012) and Khumba (2013), voiced by Hollywood stars like Steve Buscemi, Laurence Fishburne or Liam Neeson, were released in cinemas worldwide and both reached the top 5 highest grossing films of all time in South Africa. Triggerfish then expanded to TV, working with UK company Magic Light Pictures to produce Annecy Festival Cristal award winner Stick Man, Oscar-nominated Roald Dahl adaptation Revolting Rhymes, International Emmy-winning Zog, British Animation Awards winner The Snail and the Whale, and Rose d’Or-winning The Highway Rat. Triggerfish management has always been concerned about growing animation capacity in Africa, and in 2015 the studio launched the Triggerfish Story Lab with the support of Disney to develop writers and directors from across the continent. One of the projects that emerged from the program is Mama K’s Team 4, which Triggerfish is currently producing for Netflix as the platform’s first original African animated TV series. Also on Triggerfish’s busy slate is their third feature film, the action-comedy Seal Team. In this context, the studio “needed more capacity to keep up with (their) ambitions,” and clearly they were not able, despite their best efforts, to expand fast enough in Africa. The opening of Triggerfish's Galway location received the support of the Irish government and is expected to create 60 new jobs over the next three years. 

HUSTLE & FLOW #17: #KECreativesDeserveBetter, SA’s first virtual model, MultiChoice posts strong results, Netflix’s groundbreaking Nigeria deal, and more

Dear colleagues and friends,

The global Black Lives Matter movement, coupled with the restlessness created by months-long lockdowns that have aggravated existing inequalities, seem to have created a real powder keg of reclamation against injustice worldwide.  

The wind of change reached the Kenyan film industry this week as prominent Kenyan creatives, led by Cape-Town based artist and filmmaker Silas Miami under the hashtag #KECreativesDeserveBetter, came out against the entrenched racism of some white or foreign gatekeepers by sharing shocking tales of mistreatment. In a heartbreaking Facebook post, director Likarion Wainaina talked about his experience earning so little from his work on Supa Modo, one of Kenya’s most successful films and the country’s entry to the 2019 Oscars, that he was unable to pay his rent, among other traumas and indignities. The exploitation of black Kenyan cast and crew in the local film industry has been an open secret for decades. Speaking up against well-established and globally recognized white producers who are often the main purveyors of jobs or opportunities in the Kenyan film industry demanded a lot of courage. These conversations are hard but they eventually need to take place, and people have run out of patience. Who’s next?

This edition of HUSTLE & FLOW is packed with big media news. MultiChoice posted strong financial results despite a challenging global environment, while Nigeria’s content industry lived through a schizophrenic week, tugged between the celebration of Netflix’s multi-title deal with Nigerian producer Mo Abudu and shock at the National Broadcasting Commission’s attempt to ban content exclusivity, a move that threatens to (but probably won’t) stop the growth of the continent’s most dynamic film and TV industry in its tracks. I'll unpack all of this and more below.            

Please continue to share this newsletter with your colleagues and friends who have an interest in the African entertainment space. They can subscribe here to receive HUSTLE & FLOW directly in their inbox every Monday. Previous editions can be consulted there. I always enjoy hearing from you so do reach out at marie@restless.global or on your favorite social media platform @marieloramungai.

Happy reading to all,


Marie



INTERNET INFRASTRUCTURE

Last week I mentioned the issue of Right of Way charges relating to cable infrastructure in Nigeria and linked to a Quartz article that incorrectly implied that Ekiti was the first and/or only state to lower such charges. However a HUSTLE & FLOW reader kindly informed me that several other states including Katsina, Plateau, Imo, Kaduna and Anambra had also lowered or even waived RoW charges in support of the national broadband plan. Please do not hesitate to drop me a line if you spot any mistake in this newsletter or if you have more information to share on a specific topic.


MOBILE

I received another valuable contribution from a loyal HUSTLE & FLOW reader this week who pointed me to this great resource: hyper-precise mobile coverage maps for 14 African countries made freely available by mobile network operators association GSMA and Masae Analytics. The lack of consumer data in Africa is a major challenge to decision-making for businesses, governments and development agencies, but satellite imagery and machine learning advances are starting to provide effective solutions. Tools such as Masae Analytics’ mobile coverage maps are not only useful for mobile operators themselves, but also for any business looking to leverage the mobile infrastructure to offer digital finance, marketing, e-commerce, or media services. Another leading player in the satellite data space is US-based startup Fraym, which has worked with organizations such as MasterCard and the African Development Bank to provide neighborhoods and rural districts level data.

No need to reinforce here how central and strategic the mobile telecommunications sector is to the development of African economies in general. In Ghana, the National Communications Authority has become concerned about the “significant market power” of MTN Ghana, which counts more than double the number of voice and data subscribers than competitors Vodafone and AirtelTigo. Ghana’s regulator is now looking at leveraging the playing field and curtailing MTN’s market dominance by implementing measures such as setting minimum and maximum prices for calls, texts, and mobile internet but also for mobile money services. Ghana has been Africa’s fastest-growing mobile money market in recent years. 

One operator that has managed to avoid all attempts to regulate its dominant position so far is Safaricom. This week, the Kenyan telco launched new affordable data bundles (as low as $0.094 for up to 30 minutes) to use on YouTube content. According to Safaricom and to YouTube’s owner Google, both companies plan to exploit their digital capabilities and reach to deliver wide-ranging content in entertainment, education, news and sports to Kenyans. 


FASHION

Back in May, HUSTLE & FLOW readers and pretty much everyone else out there loved Congolese designer Anifa Mvuemba’s groundbreaking 3D fashion show for her brand Hanifa, which quickly sold out as the Instagram video of the collection went viral. Last week in more Ex-Machina fashion news, South African “virtual model” Kim Zulu participated in the Russian Fashion Council’s Global Talents Digital event, which presented itself as the world's “first hybrid international online fashion project” combining real designer collections and digital ones. The brainchild of graphic designer Jason Campbell, Kim Zulu recently scored a modelling contract with international brand Kangol and is set to launch her first album and TV show. She was also listed as one of the top 12 virtual influencers to follow globally by Forbes, which made the point that “in the post-coronavirus reality of limited or inaccessible travel, the digital modeling domain is set to expand. In part, it is a practical question of easier logistics and simpler labor agreements.” Kim Zulu is far from the first or only black virtual model however, with the most famous ones being CGI-superstars Shudu and Koffi, who were controversially created by British photographer and 30-year-old white man Cameron-James Wilson. Wilson has since launched a digital-only talent agency. Confused by all this? Don’t know what to make of it? You are not alone.

Besides Kim’s coming out on the global fashion scene, Twitter and Instagram were flooded last week with beautiful images of black models thanks to the viral #VogueChallenge, where thousands of black creatives who have been largely neglected by the fashion industry imagined their own versions of Vogue covers. The challenge originated on TikTok in mid-May but took on a new meaning after the Black Lives Matter movement spread worldwide and Vogue editor Anna Wintour admitted that “Vogue has not found enough ways to elevate and give space to Black editors, writers, photographers, designers and other creators.” According to Teen Vogue, there has been only one black photographer to shoot a cover in the 127-year history of the publication, and only 21 black women have appeared on the cover on their own. Some of the artists even gave their covers the title Vogue Africa, a magazine that does not currently exist but whose concept Business of Fashion made a case for over two years ago.

London concept store Koibird is dedicating the summer to designers scouted at  Lagos Fashion Week and committed to a sustainable approach to African fashion, using traditional materials and craftsmanship and supporting skilled local artisans. Koibird’s selection includes Studio One Eighty Nine, which produces its hand-dyed, woven and upcycled womenswear in Ghana, Nigerian androgynous brand Orange Culture, and South African shoe maker GalagoNataal magazine profiles other sustainable African or produced-in-Africa brands such as Thebe Magugu, Ami Doshi Shah, Anyango Mpinga, Shekudo and Brother Vellies.

And finally, Anita de Werd, Head of Marketing and Business Development at world’s leading shipping line Maersk, talks to the AfDB’s Fashionomics platform about what her company is doing to facilitate the growth of Africa’s fashion industry and “push the #MakeInAfricaForAfrica ideal”. Maersk recently launched Twill, a new freight logistics service for small and medium-sized businesses that ships cargo door-to-door over land and sea. An important service for designers seeking to develop their pan-African market as, according to expert logistics company Solistica, close to 90% of Africa’s trade is carried out by sea.


MUSIC

I have talked at length in previous editions of HUSTLE & FLOW about the opportunities presented to the African music industry by the accelerated adoption of music streaming. Justin Norman has a good expose on the topic in The Flip where he tackles “the battle for African consumers”. Some notable insights are the challenges (adjusting prices on already slim margins, cost of data, piracy, and the importance of on-the-ground distribution strategy) that African markets represent for global players such as industry leader Spotify, which still operates at a loss globally. These challenges leave some room for competition from local players with distribution strategies involving telco deals. Norman also makes a good point by referencing Disney’s famous business model in which each product and business line (Disney+ platform, movies, comic books, theme parks, merchandising, etc) works to reinforce the company’s deep relationship with its customers in a highly profitable virtuous cycle. Telcos are the obvious top dogs when it comes to adopting such an integrated model to Africa, although Norman also mentions device manufacturers like BoomPlay owner Transsion (I’m a lot less convinced by that). I’d like to offer a third contender: super apps built on top of robust mobile payment systems such as OPay, Jumia Pay or even potentially Flutterwave.

Talking about monetizing music, Pulse Ghana has a list of Africa's richest musicians which includes the estimated net worths of artists like Akon, Don Jazzy, Wizkid and Davido (no word about Tiwa Savage and Yemi Alade). I have absolutely no faith in these numbers but who doesn’t like lists? Meanwhile Burna Boy, who only gets a “notable mention” from Pulse for his net worth guesstimated at $4 million, cements his popularity on the French market as his single “Be honest” with Jorja Smith goes Platinum there. Burna Boy even tops Billboard’s list of 15 Sub-Saharan African artists based on global views, followed by Tanzanian bongo flava artist Diamond Platnumz and Davido. The Billboard article is worth reading for its analysis of the YouTube strategies of the African artists who have broken internationally as they could teach a thing or two to Western artists, according to YouTube music trends manager Kevin Meenan. Diamond Platnumz, for example, posted 600 videos in the span of a year, often following up on an official music video with a lyrics video, a dance version, a karaoke version without vocals and an animated rendering. That’s some real work right there.


SPORTS

The NGO La Guilde has announced the 13 winning microprojects of its Sports & Development program supported by Agence Francaise de Developpement (AFD). The projects, which span 10 African countries and various disciplines from football to basketball, rugby, handball, triathlon and Basque pelota, will receive between 10 and 20,000 euros each to further educational, gender equality, health or environmental sustainability goals through sports. The Summer 2020 call for proposals is currently open until September 30, 2020. AFD has big ambitions to support the development of sports in Africa so we can hope to hear more from them soon.

Multichoice's SuperSport is adapting to the return of English Premier League and Spanish LaLiga matches and is warning fans that the broadcast of these matches will look and sound different from what they are used to because of the lack of live audiences. Broadcasters are expected to use virtual stands to simulate images of fans in the stadiums. On the plus side, new camera angles might now be possible from areas that would have previously obscured the action for live spectators. 

And to wrap up this sports section, another aspirational list with what appears to be more solid numbers from our friends at Pulse: the richest African footballers of 2020.


BROADCAST

In South Africa, the embattled SABC has announced a switch to a new operating model called the "Target Operating Model,” which should allow it to be more financially sustainable and less reliant on government assistance. The state-owned enterprise, once a key player of the country’s television industry, embarked on a restructuring program in 2018 after admitting it was technically insolvent due to years of mismanagement.

On the other end of the spectrum, while the global broadcast industry is facing a major crisis due to the combined effect of the COVID-induced fall in advertising revenue and increased competition from VOD platforms, pan-African Pay-TV provider MultiChoice has released strong financial results for the year ending in March 2020. Its report shows a 38% growth in "core headline earnings" to $150 million and a 59% increase in consolidated free cash flow to $310 million, driven primarily by improvements from its businesses in the "Rest of Africa" (meaning outside of Multichoice’s home market of South Africa), which have in the past been a drag on the company’s revenues, and tight cost control. In total, MultiChoice reported 19,5 million subscribers across the continent, with 8,4 million in South Africa and 11,1 million in RoA. Four new local content channels were launched over the reporting period in RoA, bringing the group’s total number to 10 across the continent. The Pay-TV player aims to increase its production of local content from the 3,850 hours it achieved last year. In total, MultiChoice reported some $279 million spent on “Programme and film rights” last year, which combines money spent on local and international content including sports license rights. Although the company warned shareholders about future challenges linked to the COVID-19 and oil price crisis in several of its major markets, CEO Calvo Mawela said that the group’s healthy balance sheet “positions MultiChoice well to weather market uncertainties going forward." Also noted by industry observers was the announcement that MultiChoice had inked distribution deals with two major international SVOD providers, presumably Netflix and Amazon Prime Video, while its own SVOD service Showmax had started trialing sports content.

Meanwhile in Nigeria, the content industry was shocked by the announcement of new regulation by the National Broadcasting Commission (NBC) which seeks to ban content exclusivity, forcing broadcasters and platforms to sub-license their programs while also regulating license prices. IrokoTV CEO Jason Njoku immediately voiced his strong opposition to the proposed measures as they would “100% destroy PayTV in Nigeria.” For both Pay-TV services and VOD platforms, exclusive content is a major if not the main unique selling proposition to gain and retain subscribers and the motivation behind the players’ sustained investment in local films or series. NBC’s new broadcast code would directly threaten the value of such investments by compelling broadcasters and streamers to sub-license content to competitors whether or not they have recouped their initial investment. The convoluted text also stipulates that a broadcaster cannot transmit premium international sports content unless it also acquires a minimum of 30% equivalent local licencing of the same category, such as football for example. While these revisions to the broadcast code are motivated by the valid goal of providing more opportunities for smaller local channels to compete, the NBC was clearly ill-advised on how to achieve this objective - or not-at-all advised, according to industry professionals who complained about the lack of consultation. Let’s hope that the widespread outrage will lead the NBC to seek qualified counsel to review the text.


VOD

YouTube has set up a $100 million fund to help amplify black voices through new content on the platform, lining up Bear Witness, Take Action, a global conversation on racial justice hosted by Common and Keke Palmer, as the first project. No word on whether African creators will be included in this initiative, but it does not seem impossible.

Back to Nigeria, Pay-TV operator StarTimes and MTN have announced a strategic partnership which will see StarTimes offer its VOD content catalog, including live European sports streaming channels such as UEFA Europa League, Bundesliga, Ligue 1, Coppa Italia, as well as blockbuster movies, cartoons, news and documentaries to MTN subscribers at reduced data rates. 

And I have kept the best for last, as without a doubt the most exciting news this week has been Netflix’s groundbreaking announcement of a multi-title deal with prolific Nigerian producer Mo Abudu’s EbonyLife to create two original series including one based on Lola Shoneyin’s best-selling debut novel The Secret Lives of Baba Segi’s Wives, as well as a film adaptation of Nobel Prize winner Wole Soyinka’s play Death and the King’s Horseman and multiple branded films. One of the unnamed projects is due to premiere on the platform in 2020. The deal is the first of its kind for Netflix in Africa and speaks volumes, both about the value the platform sees in Nigerian content, and about the foresight and dedication of Mo Abudu who started investing heavily to develop original content in Nigeria before anybody else even considered it. Abudu took to Instagram to talk about the 5 year journey to acquire and adapt Death and the King’s Horseman, while Secret Lives has reportedly been in development for 3 years. I for sure will be looking forward to watching those.

HUSTLE & FLOW #16: Black Lives #metoo moment, Whatsapp’s ‘Catalogs’ in stealth mode, Africa’s looted artifacts sold off, and more

Dear colleagues and friends,

Two weeks after the murder of George Floyd, the Black Lives Matter movement has achieved a unique feat, uniting millions of people across the world in protest in spite of curfews and of a deadly global pandemic.

African intellectualswriters without bordersartists, academics and journalists have weighed in on the historic moment, noting the failing moral leadership of the United States and the inseparable ties between the American civil rights movement and Africa’s anti-colonialism movements. Across the continent, the global rallying calls for justice have also found an echo with regular Africans familiar with police brutality at home and abroad. In Nigeria, the Black Lives Matter protests collided with a recent spate of rapes and killings of women, prompting Nigerians to combine various calls for justice under the hashtag #wearetired.

Is #BlackLivesMatter finally having its #metoo moment? Is this new incarnation of a 52-years-long (or 400-years-long) struggle the one that will finally succeed in bringing about change? It does feel different this time. Venture firms are rushing to support Black founders and investors, Softbank launched a $100 million Opportunity Growth fund to invest in founders of color, Alexis Ohanian (famously married to Serena Williams) quit the Reddit board to make space for a Black candidate, Sony Music Group launched a $100 million fund to support social justice and anti-racist initiatives, Republic Records banned the connoted word "urban" from its company lexicon, and Hollywood heavyweights jumped to support John Boyega following his emotional speech at a protest in London.

From where I am standing, this new awareness and willingness to correct historical injustices can only have a positive impact both on the appeal of African culture worldwide and on investment in the African Entertainment space.

This week in HUSTLE & FLOW, I’ll talk about Whatsapp quietly testing its potentially revolutionary “Catalogs” feature in Uganda, Africa’s artifacts being sold off online when no one is looking, Canal Plus’ planning the release of its 6th African original Cacao, and more.

If you’ve received this newsletter from a friend or colleague, make sure you subscribe here and visit the archives there for more insights, trends and opportunities in the African Entertainment space.

Happy reading to all,

 

Marie

INTERNET INFRASTRUCTURE

For those of us working in Nigeria, Zoom calls are automatically done without the video and usually start like this “Hello can you hear me? Can you hear me? - Yes I can hear you. I can hear you. - Sorry, my connection is bad today.” We’re in 2020, and the largest market on the continent is still stuck in the bottom quarter of global broadband speed rankings. But there is light at the end of the tunnel as Quartz explains: the country’s new national broadband plan is aiming to deliver download speeds of at least 25 Mbps in urban areas (10 Mbps in rural areas) with “effective coverage” across 90% of the population by 2025. At least that’s on paper as, of course, implementation won’t come without challenges. One of them is an anachronistic oddity typical of Nigerian red tape: the hefty “right of way” charges that individual states charge telcos and internet providers before they can lay their cables. But Quartz shows how the example of Ekiti state, which recently cut its ROW charges by 96%, and the success of the Lagos neighborhood of Yaba, where an early decision to zero-rate charges eventually led to the birth of the country’s tech industry, might inspire other state governments to follow suit. 

Regular readers of HUSTLE & FLOW know that one of the biggest investment opportunities in Africa right now is in data centers, as I’ve gone on and on about it in previous editions. This week Jeune Afrique has a good article (behind the paywall and in French) about this market, that was estimated at $500 million in 2018 and is growing between 30 to 40% every year.


MOBILE

E-commerce giant Amazon is reportedly in early-stage talks to buy a 5% stake worth at least $2 billion in Bharti Airtel, the third-largest telecom operator in India which also operates in 14 countries in Africa. If the deal is confirmed, it would give Airtel the firepower to push its competitive advantage across all its markets. As we saw in a previous edition of HUSTLE & FLOW, Airtel Africa reported strong 2019 numbers, with its mobile money and data services revenues growing by 33% and 36% respectively.

Meanwhile, MTN is planning to launch its 5G network this month in South Africa, with a promotion tied to the introduction of the 5G-enabled Huawei P40 smartphones on the market.


LOGISTICS

This week on Project Syndicate, Aubrey Hruby and Aubrey Rugo make a strong case in favor of investing in the African logistics sector as a necessary precursor for the long-hoped-for boom in e-commerce on the continent. “Supporting robust e-commerce growth in Africa will require infrastructure investment. (...) The expansion of both asset-heavy and asset-light local logistics companies is also essential,” they write. “Here, development finance institutions should take the lead, investing directly in asset-heavy logistics companies, while venture funds continue to focus on asset-light companies.” They make two crucial points here which are also valid for investors interested in the African Entertainment or Creative Industries sector: First, there’s only so much you can leapfrog with a mobile app. The sector needs cables and towers, data centers (ok, ok), factories, cinemas, art galleries, and stadiums, even more so than online platforms or tech solutions. Second, different types of investors have a role to play, with the DFIs being better suited to finance asset-heavy projects (possibly through public-private-partnerships that can involve a mix of debt and equity) and VCs asset-light companies with a higher risk-reward profile.


E-COMMERCE

Guys, I had to do some real detective work on that one and I believe this might be a HUSTLE & FLOW exclusive: my sources in Uganda tell me that Whatsapp’s catalog for small business is operational there. There hasn’t been any official announcement anywhere, but this is likely to mean that Facebook (owner of Whatsapp) is currently testing the product before a full Africa roll-out. Remember how I lamented that creative entrepreneurs and artists were not able to monetize their huge fan bases on their two platforms of choice, Instagram and Whatsapp? Well, this might change very soon and if that’s indeed the case, this is BIG. Now, what’s ‘catalogs’? WhatsApp introduced the new feature to its Business app last November in various markets including the US, the UK, Brazil, Germany, India, Indonesia, and Mexico. It enables businesses to display their products and services to potential customers with photos and prices, rather than being limited to text-based conversations. Basically, it’s turning ubiquitous Whatsapp into a simple, light, hyper-local, mobile e-commerce platform that would only be missing a universal payment solution... such as Facebook Pay, another new feature the social media giant recently introduced in the US, with the goal to eventually connect various payment methods (including Paypal and Square) to Facebook, Messenger, Instagram, and WhatsApp. See where this is going?

So, compared to what could be a revolution for African small businesses, Jumia’s announcement last week of new partnerships with VOD platform IrokoTV and Mastercard is rather underwhelming. Jumia Nigeria’s new agreement with IrokoTV will see the e-commerce player offer free IrokoTV subscriptions to members of its Prime loyalty program, while its new deal with MasterCard will offer a 25% cashback to MasterCard holders who buy the 12-month Jumia Prime membership. Meh.


FASHION

Another interesting op-ed this week comes from Stewart Paterson writing in the South China Morning Post, who argues that manufacturers pulling out of China as a result of the COVID-19 pandemic should consider Africa to diversify their supply chain. He points to Africa’s rapidly growing working-age population and to the creation of the African Continental Free Trade Area (AfCFTA) as attractive factors. Such a dynamic would no doubt benefit the African textile and fashion sector. African governments are aware of the opportunity of course (and of their own needs to diversify their economies), so we can cross our fingers for a perfect storm here.


VISUAL ARTS

While we’re all being distracted by a deadly virus, a global economic crisis, and shocking racial injustice, Africa’s looted artifacts are being put up for sale at auction, Quartz reports. After years of vigorous debate, the matter of the restitution of African artifacts stolen by European powers during the colonial period seemed to be edging towards resolution as countries like France, Germany and The Netherlands announced plans to return the items to their original home.But now, some of those prominent and controversial pieces - valued between $34,000 and $4,5 million - are being quietly sold off in online auctions by Christie’s and Sotheby’s. Not a good look.

However, Prince Yemisi Shyllon, a Nigerian art collector and founder of Lagos’ brand new Yemisi Shyllon Museum of Art who was interviewed for the Quartz piece, makes a thought-provoking point from a different angle: the value ascribed to these artifacts actually depends on their current location. “There is a working industry and infrastructure [in Europe] to support the works of art. The moment those works come back to our control, they will lose value just like the ones that are here. The conversation moving forward should be to claim ownership and then claim annual royalties to these works of art even as they remain where they are.”


LITERATURE

OkayAfrica launched South Africa Reframed, a series of personal essays from some of the country’s best young writers. In the first essay of the series, Sizwe Mpofu-Walsh argues that the pandemic chaos was not predicted by political analysts or economists, but by world-builders like fantasy writers and rappers. "The Ghost Virus was quick, violent and efficient… Very soon, the country became a Ghost Town where most of what made people feel secure fell away," wrote Mohale Mashigo in her short story Ghost Strain N. An opportunity to learn about South African authors like Mpofu-Walsh and Mashigo, but also Lauren Beukes, Patrick Rothfuss, and Martha Wells. 


MUSIC

An info I had missed last month (thanks Yoann) is the announcement of Universal Music’s new strategic partnership with Lagos entertainment company The Aristokrat Group, best known for discovering and developing breakout talent Burna Boy. The partnership consists of both a label deal and a publishing deal through Universal Music Publishing Group (UMPG). Talking about Universal Music, Jeune Afrique has a good article (in French) about the recent restructuring of its Africa team, including the promotion of Franck Alcide Kacou, also known as the rappeur Black Kent, as Managing Director, and the arrival of Laëtitia Kandolo as artistic director. At just 28 years old, Kandolo has already collaborated as a stylist with Beyonce, Rihanna, Lady Gaga, Madonna and Kanye West.


SPORTS

After more than two months of a strict diet, major sports leagues are slowly making plans to resume their live games and competitions. Most relevant to Africa is the return of the English Premier League on June 17, albeit behind closed doors.

Meanwhile in e-sports news, yesterday’s virtual charity cycling race in South Africa featuring Chris Froome, Kevin Pietersen, Mel C and Darren Gough saw great uptake on the home cycling app Zwift, while also being broadcast live on SkySports and on the Zwift Youtube channel. Early in South Africa’s lockdown period, Zwift South Africa reported over 30,000 concurrent users.


BROADCAST

As live sports return to TV screens across the globe, South Africa's pay-TV operator DStv launched a text message campaign to lure back subscribers who had cancelled their DStv premium subscription. 

Over in Nigeria, the government has set up a task-team to define the policy framework for "an objective and scientific audience measurement system." According to Minister of Information Lai Mohammed, the goal is to "demonstrate the value of content to advertisers, consumers and broadcast stakeholders". Despite Nigeria’s population being three times bigger than South Africa’s, its media industry only makes 25% of South Africa’s advertising revenue. Of course South Africa’s GDP per capita ($6,374) is also three times bigger than Nigeria’s ($2,028), but I do believe that Nigeria’s free-to-air market is under-exploited and under-valued.


FILM

The Cannes Film Festival has announced its 2020 selection, which includes only two films from AfricaEn route pour le milliard by Dieudo Hamadi, a documentary on the 2000 conflict in Kisangani and the first film from DRC to ever come to Cannes, and Souad, by Ayten Amin, an Egypt-Tunisian co-production. No big surprise here as, contrary to the Toronto or Berlin film festivals, Cannes has never always been particularly interested in African films, despite its various initiatives such as La Fabrique and Cinémas du Monde meant to support world cinema. I attribute it in large part to France’s patronizing view of Africa (try to find an African film nominated at Cannes that doesn’t prominently feature sand and dirt besides Rafiki).

Remember what I said in a previous edition about Kenyan documentary filmmakers? Well another Kenyan project, How to Build a Library by Maia Lekow and Christopher King just received a grant from Sundance’s Documentary Fund. The film follows two ambitious Kenyan women navigating Nairobi’s politics and its problematic colonial history as they pursue their mission to revitalize Nairobi’s libraries. 


CONTENT PRODUCTION

Canal Plus is teasing the June 15 release of Cacao, its 6th original African series, a sweeping family drama set in the world of Ivory Coast’s cocoa industry. The series, directed by experienced filmmaker Alex Ogou and produced by Ogou and former Canal Plus Director of Programming Francois Deplank, will bring together some 70 actors from Ivory Coast, Gabon, Congo and Senegal for 12 episodes of 50 minutes. Ogou was already behind Invisibles, Canal Plus’ most successful African original so far. Another noteworthy Canal Plus production in Africa (and my personal favorite) is Sakho and Mangane by director-showrunner Jean-Luc Herbulot. Over the past few years, Canal Plus has emerged as one of the major commissioners of African series alongside Mnet/Africa Magic/Showmax, SABC in South Africa and now, Netflix.

M-Net prestige original series Trackers, adapted from the crime novel by Deon Meyer and co-produced by HBO Cinemax and Germany’s ZDF, was reportedly M-Net’s top-performing show of 2019. Now it is coming to Cinemax’ global broadcast channel (and perhaps to newly launched HBO Max?), and it will be interesting to see how it performs with international audiences. As an action-packed 6-part series about organized crime in South Africa featuring gorgeous landscapes, diamonds, terrorists, and black rhinos, it certainly has the potential to be widely appealing.

Another big success for African content this week (we’ll claim them all), is Nigerian-American Yvonne Orji’s HBO Comedy Special, Momma, I Made It!, which premiered last week to rave reviews. The "documentary-music-video-comedy-show" takes viewers all the way to Lagos and to the United-States’ DMV area where Orji grew up. Orji, who exploded four years ago with HBO’s Insecure, has always been vocal about and proud of her Nigerian roots. She is currently developing a TV series based on her experience as a first generation Nigerian immigrant called First Gen, with Oprah Winfrey and David Oyelowo on board as producers.


ANIMATION

Alright, we all need a little pick me up right now so I’ll leave you with this cute video from several Nigerian animators who came together to respond to the popular #dontrushchallenge. The very catchy song is Bop Daddy by Falz.

HUSTLE & FLOW #15: This is America, the power of African brand ambassadors, Def Jam launches in Africa, Senegalese wrestling, and more

Dear colleagues and friends,

Last week we were celebrating and this week we are mourning, both the tragic, public death of George Floyd and the slow-motion-car-crash one of a certain idea of America.

The United-States is a country I know well and where I lived for several years with my ex-husband, who happened to be a hoodie-wearing Black man. It is a country that I love but which has become increasingly impossible to defend in recent years. HUSTLE & FLOW is not the place for personal political statements, but I say a bit more here

The best and most humane analysis I found of last week’s “domino effect” is from Trevor Noah, a South African who knows a little something about institutionalized racism and inequality. If you haven’t done so already, watch his powerful video. While you’re at it, you should also read his memoir Born a Crime, his account of growing up as an illegal mixed-race child under apartheid. I promise you that he manages to make it funny.

Another reaction that rang true this week was British-Nigerian actor John Boyega’s emotional outburst on social media. Anger can be scary, but it is a valid and effective emotion when faced with social injustice.

It might seem trivial to be talking about investing in Entertainment when the matter at hand is one of life and death, but those of us who chose to work in the creative fields know that they have a role to play. At the very basis, racism comes from fear, which in turn comes from ignorance. When we watch a film, listen to a song, or attend a football game, what we seek is an emotional experience that connects us to other humans, through the medium of the artist or athlete, in a way that makes us feel understood. But this goes both ways. When we share these universal emotions with others, it also allows us to connect with their own experience of the world at a deep level - to know them, and thus not to fear them. We will always need more art.

This week in HUSTLE & FLOW, I talk about the largely-untapped marketing power of African celebrities as brand ambassadors and legendary music label Def Jam launching in Africa, but I will also get into new areas like e-learning for the creative industries and gaming

Make sure to never miss an edition of HUSTLE & FLOW by subscribing here, but if you have missed one don't worry and just head over there. Finally, do connect with me by email at marie@restless.global, or on LinkedIn, Facebook, Twitter and Instagram @marieloramungai, and soon in person as borders reopen.

Happy reading to all,

 

Marie



GLOBAL RESCUE MEASURES

The African Culture Fund (ACF) has launched its Solidarity Fund for Artists and Cultural Organizations in Africa (SOFACO) in order to support the resilience of African artists and cultural actors who have been affected by the COVID-19 crisis. The Fund will support activities in many different sectors and disciplines, and the deadline for applications is June 30. Launched in 2017 in Bamako, Mali, ACF aims to challenge the perception of culture as folklore and position it instead as a creative industry. ACF has raised over $3 million so far through an innovative model where the funds are sourced equally from African artists themselves and from international donors.


MOBILE

South African mobile operator MTN has been named “most loved African brand” once again in a recent consumer survey conducted in 27 countries with a representation of about 8% of the continent's population.


E-LEARNING

French e-learning startup LAFAAAC (already operational in Francophone Africa) has announced that its online training program for Nigerian creatives will launch in September in partnership with Nigerian media group Wazobia, French film school La Fémis, and the French Embassy in Nigeria. The program will combine mobile learning, masterclasses, animated tutorials, virtual classes and workshops from well-known experts, and will start with an offer on the fundamentals of screenwriting. LAFAAAC received support from the French Embassy’s Solidarity Fund for Innovative Projects which is dedicated to the development of the Nigerian cultural and creative industries. The fund aims to stimulate cultural entrepreneurship, capacity building and governance policies in the audiovisual, interactive media and cultural heritage sectors in Nigeria.

Although LAFAAAC is the first company to launch an e-learning program dedicated to the African creative industries, the space has also been attracting interest from other players, and the COVID-fueled rush to all things digital is certainly creating an enabling environment. Media group TRACE plans to launch its own TRACE Academia in 2020, while Nigeria-based EnVivo Education (co-founded by AFRIFF’s Chioma Ude) already offers the Cisco Network Academy’s and Digital Marketing Institute’s curriculums and wants to expand to filmmaking training.


VISUAL ARTS

I’ve already talked about how leading Contemporary African Art Fair 1-54 moved to an online format this year in a previous edition of HUSTLE & FLOW. The fair closed yesterday, but I thought I would still share this article from Le Point for the French-speakers among you. This year, 1-54 showcased over 600 works by more than 80 artists from Africa and the diaspora, represented by 25 international galleries.

One platform that didn’t wait for the pandemic to go online is African Digital Art (ADA), a true pioneer turned pillar of the African creative ecosystem launched by Kenyan designer and artist Jepchumba some 15 years ago. ADA is a great place to discover a wide range of creative works from audio/visual production, animation, interactive projects, web, film, graphic art and design. This week it is launching a series of interviews with digital artists from across the globe about “their process, ethos, and ways of imagining future possibilities.”


E-COMMERCE

DHL is the logistics partner of choice for African fashion designers because of its substantial efforts in recent years to enable Africa-based vendors to ship their products across the continent and the world for a reasonable price. DHL is now doubling down on its commitment to African e-commerce through a strategic investment in Link Commerce, the UK-based e-commerce platform that has helped DHL develop its successful DHL Africa eShop platform.


FASHION

First, a shout out to two HUSTLE & FLOW favorites making waves this week in the global fashion world: Sarah Diouf‘s Tongoro is launching on prestigious French retailer Printemps’ online platform, while Lagos Fashion Week founder Omoyemi Akerele joins the Commonwealth Fashion Council board. Well-deserved congratulations to both.

Then, the Business of Fashion has an in-depth article this week about the marketing power of African Brand Ambassadors, which I recommend you read in full (careful with the numbers in there though, Lionheart was definitely NOT acquired by Netflix for $3 million). Although “celebrity marketing has fallen out of favour during the pandemic, when the strategy makes a comeback global brands need to act fast to tap more African influencers to access high-growth markets like Nigeria, Kenya and South Africa,” writes BOF. The article mentions examples such as South African Queen Sono star Pearl Thusi, who recently became the face of MAC cosmetics’ new MAC X Pearl collection, and Nigerian music heavyweight Wizkid, who successfully collaborated with Nike two years ago to create a quickly sold-out Starboy jersey. Nollywood stars would be natural marketing partners for global brands seeking to enter Nigeria, although, as Lagos-based Redrick PR's Ijeoma Balogun justly says, most celebrities would be considered too mass market to appeal to luxury consumers there. Brands targeting that segment should rather look at peer-to-peer influence from other high-net-worth individuals working in the creative industries as a more effective marketing strategy. The article doesn’t shy away from the difficulties of launching luxury brands on the continent, which include of course the lack of retail and digital infrastructure. However, the opportunity remains for those willing to “spend the time understanding the culture and the people before entering the market,” says Endeavor Chief Marketing Officer Bozoma Saint John. That is why I usually recommend starting with a customized market study and on-the-ground visit to my clients who are new to Africa - not all of them take the advice.

Finally, the African Development Bank’s Fashionomics initiative is launching its webinar series this Tuesday with a first session on “Thriving in a (post-) COVID-19 World”. Sign up here.


MUSIC

The top African Entertainment news of the week is Universal Music Group’s announcement of the launch of its iconic Def Jam division in Johannesburg and Lagos, with a focus on "hip-hop, Afrobeats and trap talent in Africa." Contrary to the US, where Universal operates different labels with their own DNA such as Republic, Interscope, or Capitol, in Africa it had so far been reduced to the Universal Music brand. “What Def Jam Africa allows us to do is create an aspirational label,” says Universal Music Sub-Saharan Africa managing director Sipho Dlamini. Def Jam Africa launches with a roster that includes South Africa's Nasty C, Boity, Cassper Nyovest, Nadia Nakai, Tshego, Tellaman and Ricky Tyler, and Nigeria's Larry Gaaga and Vector. 

Not to be undone, Apple Music announced its new weekly show, Africa Now Radio with Cuppy, hosted by Nigerian DJ Cuppy and showcasing "the latest African sounds, be it amapiano, afrobeats, highlife, alte, house, hip-hop, afrobongo, or kuduro”. The show premiered yesterday and can be accessed here.

Meanwhile, Davido's "Fall" continues to break records three years after its release and was certified gold in the US and Canada this week with 800,000 and 40,000 sales respectively. In 2018, the video for "Fall" became the most streamed Nigerian music video on YouTube. It currently stands at 169 million views on the platform.


LET'S CALL IT LIVE DANCE PERFORMANCE

Besides live music concerts, another casualty of the COVID-19 lockdown has been Lagos' normally bustling strip club industry. But innovative nightclub owners, and in some cases the strippers themselves, have come up with a solution: raunchy private house parties. This makes complete sense in a city where money can buy you a private experience for everything from film screenings, to concerts, to fashion shopping and styling, and where specifically catering for that customer segment is a revenue stream in many business models.


SPORTS

I was able to catch some of the sessions of last week’s Future of Sports conference organized by the Africa Sports Ventures Group, which brought together prominent speakers such as Liberian President and former World Footballer of the Year George Weah. Of particular interest was the discussion on unlocking value from popular  traditional sports such as Senegalese wrestling, also known as Laamb. According to Senegal’s Presidential Advisor on Youth and Sports Ndongo N’Diaye, wrestling is even more popular in the country than football, with big competition nights drawing crowds of up to 25,000 fans and prize money for fights reaching $16 million in 2016. And this type of traditional wrestling does not just happen in Senegal but in all Sahel countries. It is called Dambe in northern Nigeria or Boreh in The Gambia, for example. Years ago I filmed a story on Nuba wrestling while stuck in Khartoum for two weeks waiting for an elusive visa to Darfour. It was a scene straight out of Gladiator. And who doesn’t like Gladiator?

Moving from sand pits to pixels and bit rates, eSport promoters are now looking to expand across the continent, boosted by lockdown-fueled growth in South Africa. With a global audience expected to rise to 495 million with revenues up to $1.1 billion by the end of 2020, and market conditions across Africa now resembling China’s and India’s some five years ago, industry players such as Nodwin Gaming (investors in Global eSports), believe that the time is right.


FILM

The Cinema Exhibitors Association of Nigeria (CEAN) has shared some numbers about the estimated impact of the pandemic on Nigeria’s film industry. Over 5,000 cinema employees (of which 75% are youths between ages 18 to 25) have been furloughed or fired since theaters were shut down more than two months ago. Some 4,000 indirect jobs (retail vendors, logistics companies, film distributors, security men, gardeners, housekeepers, etc) have also been impacted. The complete shutdown of the country’s prolific film production sector, which can employ up to 100 people per project, may have led to the loss of another 40,000 jobs. In total, CEAN estimates that “the general loss in revenue from the creative industry is about [$52 million], with approximately 250,000 jobs at stake.” 

That’s certainly depressing news. More optimistic is Nigerian film exhibitors’ experimentations with drive-in cinema, which has seen a revival in other countries hit by lockdown measures. 7Eleven Entertainment was set to offer Lagosians their first drive-in cinema experience last weekend at The Lekki Coliseum, while a previous attempt in Abuja had to be aborted and rescheduled due to the heavy downpour. A few bold Nigerian filmmakers have also decided to resume shooting with reduced teams, such as on the TV series Meadows currently in production in Abuja, although no official greenlight has been given for film sets to reopen.

On the other side of the continent, the Kenya Film Commission (KFC) is rolling out its plan to cushion the country’s film sector from massive job losses by providing funding worth $940 per project to two short films in all of Kenya’s 47 counties. Meanwhile, Kenyan documentaries continue to perform well on the international stage, with Just A Band, a film about the trendy house/funk/disco Kenyan music group of the same name co-directed by the Canadian Anjali Nayar and Kenyan Mbithi Masya (also a member of the group), winning the second prize of the First Look Pitch Prize at this year’s Hot Doc Forum Festival.


BROADCAST

Still in Kenya, rival television stations K24 (owned by President Uhuru Kenyatta’s Mediamax Network) and KTN News (owned by The Standard Group) are set to work together on the first deal of its kind in Kenya. As part of the arrangement, K24 would scrap its own news programming to carry the one produced by KTN. Mediamax would also close down Kameme TV, its vernacular television station. Mediamax Network’s restructuring is motivated by the shrinking in advertising revenue due to the pandemic. This might be the first event in a consolidation wave to hit the African broadcast sector.


VOD

WarnerMedia’s Netflix competitor HBO Max launched last week in the US, and according to news coverage, it was either “a mess” or “a disaster”. According to Engadget, “Confusion and HBO Max practically go hand-in-hand. (...) So it's no wonder the collective response to HBO Max on social media has simply been: "Huh?" But here's the thing: These missteps won't matter in the long run. This isn't a Quibi situation, a fundamentally flawed service that has no place in the current media landscape.” As you may have gathered by now, I do love a snarky VOD insider review, especially if it includes a side jab at Quibi. The reason why HBO Max can still succeed is because it is the exclusive home for some extremely valuable content (such as FriendsSouth Park, and the entire HBO catalog). But it will have to fix its distribution, pricing, marketing, and the absurd cohabitation with HBO Now and HBO Go - so basically every single aspect of its product besides content. However, I hear that they are already looking for an African series, so I wish them all the best (we need them).


ANIMATION

The little novelty of the day is the “first animated series from The Gambia” produced by the family-owned and women-led Fyen network. The series, which stars characters such as Princess Halima, Bakary on Safari and Samba and Batch, was apparently 13 years in the making - yes, I know that struggle.


GAMING

And to finish this week, there is some good news for Africa’s video games industry: gaming development startup Carry1st has raised a $2.5 million seed round led by CRE Venture Capital. Adding some other money previously raised, Carry1st now has $4 million to deploy in game publishing across Africa. The startup has already launched two games as direct downloads from its site, Hyper! and Carry1st Trivia, which the company says was the number one game in Nigeria and Kenya for most of the year with about 1.5 million downloads. Carry1st’s ambition is to become the top gaming content publisher in Africa, which means not only developing African games but also serving as distributor for international gaming content into the continent. Now, I’ve always been puzzled by the discrepancy between the enormous revenue numbers reported for the African gaming industry ($570 million in 2018?) and the fact that I don't know any local gaming studio or developer, including the ones constantly touted by the press, that is thriving. In fact, many have folded and those who survive do so by producing graphic design and animations for corporate clients. Could this be a case of media-driven hype based on a serious dose of wishful thinking? How is the "African gaming sector" actually defined? Do these mysterious numbers also include sports betting, online gambling or premium SMS voting on Big Brother Naija? Where is the money actually being made? If that $570 million is just leaving Africa, then that doesn’t count. If you have that information, please educate me!

HUSTLE & FLOW #14: Afrikrea and Fashion’s e-commerce future, Why Mr Eazi is the next Jay-Z, Netflix's Blood & Water is Fire, and more

Dear colleagues and friends,

Happy Africa Day! I admit that I was going to make some snide comment about Africa Day being some kind of marketing ploy akin to Valentine’s Day or all these other Days (don’t get me started). But it turns out that the point and history of the Africa Day celebration was lost on me, as it is apparently on many

Africa Day is actually the annual commemoration of the 1963 formation of the Organisation of African Unity (today the African Union), and is celebrated to acknowledge the progress made in liberation and social movements across the continent. So, I’m down with that. As with everything else these days, the celebrations are taking place online, and include a YouTube benefit concert, a Netflix African Collection showcase, and a Sport Business conference

But today is also the 3-months anniversary of HUSTLE & FLOW. Since launch, this newsletter’s audience has grown 350% to reach 450 investors (68%), entrepreneurs (25%) and government representatives (7%) predominantly based in the US, France, Nigeria, UK, Kenya and South Africa, in that order. Despite the global lockdown, it has led me to connect personally with more than 20 of you to discuss your various businesses, investments, or initiatives.

So there is a lot to celebrate today. In this edition of HUSTLE & FLOW, I will do so by sharing a whole bunch of delicious tidbits that truly highlight the excellence of Africa’s creative sector from food to fashion, music, literature and TV. More specifically, I’ll talk about the success of e-commerce platform Afrikrea, why Mr Eazi is the new Jay-Z, and Netflix’s new standard-setting South African original Blood & Water.

My goal with HUSTLE & FLOW is to galvanize the sector and spur investment, so please do share this newsletter with anyone in your network who may have an interest in African Entertainment. If you have received this newsletter from a friend or colleague, please subscribe here so that you don’t miss any future editions. And to catch up on past ones, head over there

Happy reading to all,


Marie

INTERNET INFRASTRUCTURE

The COVID-19 crisis has intensified efforts by governments and the private sector to develop connectivity infrastructure. The African data center space in particular continues to register strong activity, and last week Raxio’s carrier-neutral data center has opened in Uganda with nine local data carriers on board, while Liquid Telecom Group's owned Africa Data Centres has announced the acquisition of a new facility in Johannesburg, South Africa. In this good overview, The Africa Report identifies competitive or diversified markets for both electricity and fiber connectivity as a main condition for a proper take off of the African data center space. 

African countries still have, on average, the least affordable mobile data, fixed-broadband and even mobile voice services by global standards, and price remain a major barrier to mass internet adoption and usage across the continent. However,  according to a recent report, Botswana, Nigeria And Seychelles are on track to meet the International Telecommunication Union's Broadband Commission affordability threshold target of 2% of the monthly gross national income. Mauritius and Gabon already provide the most affordable broadband services on the continent.


MOBILE

Lebanese telco group Africell has received Angola’s coveted third mobile provider license, which will see it compete against Movitel and Unitel for the country’s 15 million subscribers. Africell is already present in Uganda, DRC, the Gambia and Sierra Leone.

I’ve talked about Safaricom’s impressive results in previous editions of HUSTLE & FLOW. This week, Business Daily gives us more points of analysis: with a market value of $9.96 billion, not only is the Kenyan operator the 10th most valuable African firm in a ranking dominated by South African companies, but it now also represents a shocking 53.3% total investors’ wealth on the Nairobi Stock Exchange. If Safaricom isn’t a Harvard case study already, it really should be.


FASHION 

For the African fashion sector, in which the lack of physical and digital distribution networks has long been a major challenge, the lockdown has had one positive impact in that it’s given a clear boost to e-commerce. In this great wrap up by Quartz, Afrikrea founder Moulaye Taboure says that the current crisis “is definitely a game changer in Africa”. Afrikrea mostly services clients in Europe and the US, but its orders from African customers have tripled over the past two months while an increasing number of African designers are also signing up to the platform. Founded in 2016, Afrikrea is a marketplace for African-made creative products from fashion, art and handicraft to beauty and fabrics. When the pandemic started in March, it was fresh off a successful funding round, having locked down $1 million to expand its footprint beyond its existing community of over 5,000 designers, which had already generated $5 million worth of sales across 101 countries. Moulaye contributed more insights in this webinar by Lagos Fashion Week. Of particular interest is his approach to competition from Instagram, which many African designers use to make direct-to-consumer sales. The key for Moulaye is to incentivize designers to sell through Afrikrea by solving real pain points (such as making shipping easier through their partnership with DHL), while “getting out of the way” of their need and desire to use Instagram as well as any other means at their disposal to advertise their business.

But the fashion industry has barely began to scratch the surface of what it could do with digital tools. In a bold move that has been labeled as “bar raising” and “standard setting”, Anifa Mvuemba, the US-based Congolese designer of contemporary brand Hanifa, debuted her latest collection on Instagram Live via 3D models on Friday. The viral video (which you really need to watch) shows “invisible” 3D models walk down the screen wearing the brand’s designs. The 29-year-old designer said she had planned the digital-only show before the pandemic hit, but clearly she couldn’t have found a better time to grab the world’s attention. A truly innovative way to use available technology that is likely to change the way we shop for clothes online forever. 


MUSIC

Nigeria’s three Afrobeats Greats Davido, Tiwa Savage, and Mr Eazi are the subject of Billboard magazine's latest cover story “'This Isn't a Fad': Three of Africa's Biggest Stars on Making the Industry Come to Them”, in which they proclaim that the "next musical revolution is brewing in Africa." There are lots of gems in this article, which I encourage you to read in full, but I wanted to talk more specifically about Mr Eazi, whose business-savvy never fails to impress me every time I read or watch one of his interviews. Besides being a talented artist himself, at just 28-years-old he is an astute entrepreneur already building a Jay-Z-style musical empire. Contrary to Davido and Tiwa Savage, he turned down lucrative deals from global music labels to remain independent, and two years ago founded the talent incubator and label emPawa Africa, which helped cover video costs for 100 emerging artists from 11 countries with a first $300,000 round of investment. Mr Eazi is quick to point out that there are many kinds of music that get lumped into the “Afrobeats” genre, and emPawa doesn’t hesitate to support artists performing in a variety of sounds, such as Malawian folk singer George Kalukusha. In 2020 emPawa will award 30 artists grants of $10,000 each. Mr Eazi clearly is a mogul in the making.

In other music news this week, Global company Downtown Music announced that it has acquired South Africa-based Sheer Music Publishing. Building on a long-standing relationship between the two companies, the acquisition formally expands Downtown’s geographic footprint to the African continent, while Sheer will continue to function as a standalone business within Downtown’s portfolio of music publishing, distribution, monetization, artist and label services businesses. Sheer and Downtown also plan to develop new services specifically designed for the needs of African creators.


LITERATURE

The short list of nominees for the 2020 Nommo Awards for Speculative Fiction by Africans is out. The Nommo Awards are presented in four categories namely "Best Novel", "Best Novella", "Best Short Story" and "Best Graphic Novel" and will no doubt be of interest to HUSTLE & FLOW’s Hollywood-based readers. African fantasy or “Afrofuturism” fiction has been having a moment for quite a while now, with Hollywood studios actively snapping up IP in the genre across Africa and in the diaspora. This year, the Nommo Awards’ long list included Children of Virtue and Vengeance, the second book in 26-year-old Tomi Adeyemi’s Legacy of Orïsha Young Adult trilogy. In 2017, film studio Fox 2000 (now part of Disney) acquired Adeyemi’s first novel Children of Blood and Bones in one of the biggest YA debut novel publishing deals ever. Interestingly, the Afrofuturism genre is dominated by women, with high-profile screen adaptations of Octavia Butler’s Wild Seed and Nnedi Okorafor’s Who Fears Death and Binti in the works with Amazon, HBO and Hulu respectively. Also nominated this year are graphic novels Iyanu - Child of Wonder (long list), which I’ve talked about in a previous edition of HUSTLE & FLOW (and which has smashed its Kickstarter goal of $5,000 by raising $26,000 so far), and Beserat Debebe’s Hawi (short list), which is branded as “the first female comic to ever come out of Ethiopia” (I’m always suspicious of “first ever” claims and highly doubt this is correct here).


FOOD

African gastronomy is getting noticed in France thanks to a new generation of young chefs bringing an aura of cool to a cuisine often considered as too “traditional” in the west. Twenty-seven-year-old Top Chef star Mory Sacko was about to launch his first Afro-Japanese restaurant MoSuke when the opening was postponed due to the lockdown. If this first experience is successful, his dream is to later expand to Rwanda, Senegal or Nigeria. Meanwhile, ELLE Magazine recently profiled Sylvain Avajon and Romuald Metellus of Table Metis, Gabonese chef and Canal+ Afrique presenter Anto Cocagne aka Le Chef Anto, Rudy and Joel Laine of Le Maquis-New Soul Food, Fousseyni and Abdoulaye Djikine of BMK Paris-BamakoMasterChef’s Georgiana Viou, and Freddy Lindou Chokote and Gaudrey Chokote of Les Tontons Afro, who made an impression on France’s version of Shark Tank last year. The pioneer of the bunch is 29-year-old Dieuveil Malonga, who also got noticed on television in Top Chef all the way back in 2014, and has since opened a restaurant-lab in Kigali and launched the chefsinafrica.fr platform to showcase the continent’s best artisans, food growers and chefs.


BROADCAST

The lack of precise audience data in most African countries generally prevents any in-depth analysis of the popularity or commercial value of specific programs. I also don’t believe that there exists a pan-African ranking of most-watched shows (if it does, please let me know). One player that does have its own audience data and makes proper use of it however is Pay-TV leader Multichoice. And Multichoice just renewed Big Brother Nigeria for its 5th seasonBig Brother Nigeria is an offshoot of Multichoice’s Big Brother Africa reality TV franchise, which was launched in 2003 and produced by global format owner Endemol. Big Brother Africa brought together a pan-African cast and ran for 9 seasons before being cancelled. This type of reality show is way past its heyday worldwide, and yet, Big Brother Nigeria still survives. Now, I don’t have access to Big Brother Nigeria’s audience numbers. But based on my own, wholly un-scientific, empirical observations, I believe that it might be the most popular TV show in Nigeria. Here’s what I know: when Big Brother is on the air, conversations about the show take over Instagram for weeks. At Lagos Fashion Week last fall, I noticed that some of the models walking the runway were getting the audience buzzing with excitement. When I asked my 20-something neighbor what the fuss was all about, she explained that they were Big Brother contestants. Big Brother Nigeria is having a Tiger King-esque impact on the country’s culture, and if we set aside any moral considerations about this type of shows, they are money-making machines. Which leads me to two thoughts: one, I am not sure Multichoice realizes this fully and is exploiting this property to the maximum and two, in its quest to win over Nigerian subscribers, Netflix might want to get into the reality TV game (like it’s done in other countries already) sooner rather than later.

WarnerMedia is boosting its presence in Francophone Africa thanks to a new carriage deal with Pay-TV operator StarTimes for its CNN and Warner TV channels. The two new channels come to enrich WarnerMedia’s portfolio already available on StarTimes which includes TCM Cinema, Boing, Boomerang and Cartoon Network. This is the first time that Warner TV, which will propose American series from the Warner catalogue dubbed in French, becomes available in Africa. Warner TV is not a well-known brand of the WarnerMedia television portfolio, and is only available in Latin America, France, Southeast Asia, and now Africa. However, Warner TV started investing in French original series last year, a sign that it may eventually do the same in Africa.


VOD

The global streaming world was rocked last week by the news that Disney’s direct-to-consumer chief Kevin Mayer was leaving to become the CEO of TikTok and COO of TikTok’s owner ByteDance. Mayer is largely credited for the very successful launch of Disney+, but was nevertheless passed over as new CEO of Disney when Bob Iger chose Bob Chapek as his successor in February, which might have given Mayer some incentive to move on. He will bring the Disney aura to TikTok as well as the ability to manage at scale, and of course a strong connection to the Hollywood ecosystem. But he is also likely to be used as a buffer by the Chinese ByteDance in its delicate well… dance with US lawmakers in the context of the US-China trade war.

Meanwhile, a new player has entered the VOD arena in Nigeria, with the launch of Super TV, which describes itself as “Nigeria’s first zero data technology for on-demand live TV and VOD.” It will be open to both linear TV broadcasters and individual content distributors seeking to upload and monetize their content on the platform. In order to offer a zero data solution to customers, Super TV has negotiated deals with mobile operators 9mobile and MTN. If this actually works, it could be a big step forward for VOD adoption in Africa and I will, of course, keep you updated. 

Now, I have kept the best for last. Blood & Water, Netflix’s second South African original was released on May 20th, and it is Fire! The series follows 16-year-old Puleng Khumalo as she investigates whether the girl she recently met at a party could be her kidnapped-at-birth older sister. Set in a gorgeous and exclusive high school in Cape Town (while also taking care to show less-privileged corners of the city), Blood & Water gives off some serious Gossip Girl vibes and promptly reached the number 1 spot on Netflix in numerous countries including South Africa, Nigeria, and Kenya, but also the US, UK and France - an amazing feat by any standards. One needs to acknowledge Netflix’s strong commitment to its African originals, which have so far been supported with serious and efficient marketing campaigns. But the praise really should go to the Gambit Films team, who are the creators and producers of the show. Nosipho Dumisa, Travis Taute, Bradley and Daryne Joshua, and Benjamin Overmeyer may have official titles but also work within their own innovative structure that sees various team members share writing, directing and producing duties depending on the project. When I met them several years ago, it was already clear that they had what it takes to go far. For a while they kept their heads down as they continued to hone their craft, and the success of Blood & Water is the result of their talent and dedication. 

HUSTLE & FLOW #13: Undersea cable links 2Africa, OPay plans “super app”, TV series’ budgets revealed, and more

Dear colleagues and friends,

As we enter the second half of May, Western media is catching on to the fact that the expected disaster hasn’t taken place in Africa and that the reason behind it may be based on more than dumb luck and a youthful population. In her piece entitled “What African Nations are Teaching the West about Fighting the Coronavirus?”, former New York Times East Africa bureau chief Jina Moore writes: “A rather obvious possibility stares us in the face: What if some African governments are doing a better job than our own of managing the coronavirus?

Of course, we may choose to ignore biased reporting (after all, what’s new), but that would be to our own detriment. I strongly encourage you to read this fascinating essay by Nanjala Nyabola in which she writes: “Whatever journalists commit to print and broadcast during this period will be among the primary pieces of information that future scholars will analyze to try to understand what we were all doing as the world fell apart. But so far, when it comes to Africa, the first draft is an incomplete and inaccurate story of a continent waiting to be saved. If only the first story enters the archive, the creativity and agency of swaths of humanity will be lost, which will have consequences beyond the pandemic.”

One of these consequences may be the retraction of funding and investment to Africa, even when a key issue for African businesses is that they are chronically under-capitalized to begin with. But as you know, I always look for the silver lining, and when I see the enthusiastic readership of HUSTLE & FLOW, I continue to think that great things are on their way. This week, I’ll talk about the major new undersea cable project announced by a consortium including Facebook and various telcos, OPay’s plans to build Africa’s first “super app”, and how much it costs to produce TV series across the continent.

As always, please reach out with your comments, questions and requests for Zoom calls at marie@restless.global, and catch up on previous editions of HUSTLE & FLOW at www.restless.global/hustleflow.

Happy reading to all,

 

Marie



 

INTERNET INFRASTRUCTURE

The big news last week was the announcement of a major new undersea cable by a consortium including China Mobile International, Facebook, MTN GlobalConnect, Orange, Telecom Egypt, Vodafone and WIOCC. The fully-funded project, called 2Africa, will connect 23 countries in Africa, the Middle East and Europe, with 21 landings in 16 African countries. Expected to go live in 2023/24, 2Africa promises to deliver more than the total combined capacity of Africa's current cables. The 2Africa cable has been designed to improve resilience and maximise performance in a context where fiber-optic incidents are still frequent - two major cable breaks greatly impacted connectivity throughout the continent this year.

Meanwhile, just a few weeks after launching in Kenya, Google’s high-altitude mobile internet solution Loon has signed a deal with Vodacom to expand the South African mobile operator’s network to remote areas in Mozambique.


MOBILE 

Mobile operators’ Q1 results continue to trickle through, confirming strong growth overall in terms of data and mobile money usage. The MTN Group reported a 11% increase in sales, led in part by growth in data traffic in Nigeria, Ghana and South Africa, as well as 6.6 million new subscribers, for a total of 257.3 million. However, MTN also confirmed that it had reduced spending plans for the full year to $1.1 billion in order to focus on preserving cash and maintaining its networks as it navigates the COVID-19 pandemic. Airtel Africa reported a 21% decline in its total net profit at $65 million for the first quarter, mainly due to higher finance costs, but its numbers remain strong overall, with a 56% growth in data usage leading to a 39% growth in data revenue year-on-year, while mobile money revenue went up by 29.5%, driven by subscriber growth and a more robust distribution infrastructure. Airtel Africa announced that it had continued to invest in various future growth opportunities over the period as it expanded its distribution, modernised and expanded its network with 65% of sites now on 4G, and acquired new spectrum in Nigeria, Chad, Tanzania and Malawi.

In Nigeria, both operators lead the way in terms active internet users, with 56.49 million for MTN and 36.17 million Airtel, according to the latest industry report released by the Nigerian Communications Commission (NCC). They’re followed by Globacom and 9Mobile with 30.95 million and 7.94 million internet subscribers respectively. The country’s total number of active internet users increased by 3.29 million to hit approximately 132.01 million at the end of February this year. 


E-COMMERCE 

In this new episode of “Can Jumia leverage the pandemic for its own survival?”, Jumia’s Q1 earnings revealed a slight 4% narrowing of its operating losses (still at $47.3 million though) even as revenue dropped by 7%. The impact of COVID-19 varied by product category and country, with sales of consumer electronics, phones and fashion, as well as Jumia Food orders (linked to the closure of partner restaurants) dropping sharply. However, on the bright side Jumia saw a four-fold surge in grocery sales while Jumia Pay’s total payment volume reached $38.4 million in the first quarter, a 71% year-on-year increase. 

However, a future competitor might be revving up its engines as Norway-based, Chinese-owned Opera continues to deploy its strategy to build a multi-service “super app” in Nigeria as the foundation to expand on the continent. The Opera mobile browser has long been popular across Africa. In 2018 the company launched its OPay mobile money platform in Nigeria, and a year later raised an enormous $170 million round to develop OPay as the financial utility to support a large suite of internet-based commercial products that now include OMall, a B2C e-commerce app; OTrade, a B2B e-commerce platform; OExpress, a logistics delivery service; OFood, for restaurant delivery; ORide, a motorcycle ride-hail service; and Olla, a mobile phone line pre-loaded with its apps. OPay’s strategy is to replicate the success of Asia’s super apps such as WeChat, Grab and Go-Jeck. The end goal wouldn’t be dissimilar to Jumia’s, which is also seeking to dominate several verticals, but the approach is different: rather than building everything on top of e-commerce, which is immature in Africa, Opera is starting where Africa is leading the world: fintech. And this seems to be working so far: between January and April OPay’s offline and online transaction volume increased by 44%.


FASHION

On the fourth anniversary of her brand Tongoro, Senegalese fashion entrepreneur and HUSTLE & FLOW favorite Sarah Diouf released ‘Made in Africa’, a 30-min documentary about her journey building her Dakar-based label Tongoro which highlights the importance of local craftsmanship on the continent.

Talking about craftsmanship, when we consider African fashion we mostly think of clothes and accessories, but rarely of fine jewelry, despite the fact that Africa is home to precious raw material such as gold or gemstones. CNN has a great article this week about the new wave of African fine jewelry designers such as Vania Leles from Guinea-Bissau or Sierra Leone-born Satta Matturi, who counts Rihanna as a client. Rosenkrantz Africa specializes in tanzanite, a deep blue gem that can only be found in a small mining area in Tanzania. Over a decade ago during my journalism days, I descended 400 meters into the ground to film miners excavating the precious stone with high-pressure water hoses - quite an unforgettable experience. The brand’s founder Iver Rosenkrantz recently opened Zimbaqua, Africa's first woman-only mine for aquamarine and tourmaline based in Zimbabwe. Now that’s something I’d like to see.


VISUAL ARTS

Over the past few years, photography has become one of Nigeria’s most exciting art forms, especially thanks to its quest to document Lagos’ thriving youth culture. This week, two of Lagos’ most promising young photographers/visual artists, each with their own distinct styles, get a shout out in the press: OkayAfrica talks to Thompson Ekong (aka TSE) about his eye-catching work which has landed him collaborations with Nike, Davido, Rema, Santi, Teni and 6LACK, while multidisciplinary creative Daniel Obasi is his own muse in inspired self-portraits for I-D.

Belgian non-profit Africalia has launched a call for proposals to support “the production of artistic works during, in reaction to or following the crisis”. Africalia will allocate 50 “Creativity is Life” grants of €1,500 per artist in its countries of intervention: Burkina Faso, Senegal, Democratic Republic of Congo, Rwanda, Kenya, Zimbabwe and Uganda. The submission deadline is June 2.


LITERATURE

While book events worldwide have been put on hold, the virtual festival Afrolit Sans Frontieres is using Facebook and Instagram to host frank discussions around writing, creativity, sex and violence through a series of hourlong readings and Q&A sessions. Afrolit already held two editions over the past two months, and will return for a third entitled “Future. Present. Past.” on May 25, to coincide with Africa Day. Meanwhile, the 8th edition of the Ake Arts and Book Festival, initially scheduled to be held in Lagos from October 22 to 25, will now take place exclusively online.


MUSIC

In previous editions of HUSTLE & FLOW, I’ve talked about how, despite the tough blow dealt to the African music industry by the cancellation of live events, many artists had quickly pivoted to social media to continue to grow and engage their audiences during the pandemic, while the forced digitalization of most activities was boosting music streaming. But for another, more traditional category of musicians who make a significant portion of their income from European “World Music” festivals, the closing of borders is an issue that may threaten their livelihoods over the long term. These artists, despite being internationally renowned, might rarely if ever perform in their home countries, do not have large digital-savvy local audiences, and are completely dependent on foreign festivals to survive. A World Music network of industry professionals is now exploring the idea of creating a specific solidarity fund to support them. 

If you haven’t had enough of online telethons after Lady Gaga’s “One World: Together at Home” last month and Canal Plus’ “Africa at Home: Together against Corona” this past weekend, there’s more coming your way. On May 25, MTV and YouTube will partner to present an “Africa Day Benefit Concert #athome” hosted by Idris Elba, and I’m hearing that Trace TV is planning its own event as well. 


SPORTS

The Nigeria Football Federation has disclosed that Pricewaterhouse (PWC) had been given the contract to recruit coaches for the national male (Super Eagles) and women (Super Falcons) teams, following a set of structured criteria. The Super Falcons’ coaching job is open to Nigerian and expatriate coaches indiscriminately, as long as they meet the standard set by PWC. I’m very curious to see the result of this process.


BROADCAST

WarnerMedia and Canal+ Group have launched TNT and Cartoon Network within Les Bouquet’s Canal+ pay-TV offer in Rwanda. This follows efforts by Canal+ to reinforce its English-speaking channel proposition in a country where half of the population counts as English-speaking. Canal+ is already the leading pay-TV operator in French-speaking Africa but has recently started to make moves that suggest it is looking at expanding beyond the language barrier, including the acquisition of ROK Studios in Nigeria and the planned launch of its pay-TV services in Ethiopia.

Meanwhile in South Africa, local telenovela Gomora (not to be confused with gritty Italian crime drama Gomorrah) has become the most-watched TV show on all of DStv with 2,5 million viewers in April, just one month after its release.


FILM

Nigeria continues to slowly and gradually ease its lockdown, but there is no telling yet when the country’s 40-odd cinemas will be able to reopen. But Nigerians’ love for the big screen remains strong. A recent survey by the Cinema Exhibitors Association of Nigeria (CEAN) showed that 95% of respondents miss going to cinemas, especially for the cinema experience (88%), while 68% are willing to return to cinemas if and when safety measures are put in place. For now, AFRIFF, Nigeria’s most prominent film festival typically taking place in November, is going on as planned, and submissions are currently open until July 1.


VOD

If you are a regular reader of HUSTLE & FLOW, you know what I think of Jeffrey Katzenberg’s ill-conceived, mark-missing, “quick bite” mobile VOD service Quibi. When asked to explain its anemic downloads a month after launch, “I attribute everything that has gone wrong to coronavirus. Everything,” Katzenberg said. “Is it the avalanche of people that we wanted and were going for out of launch?” he said. “The answer is no. It’s not up to what we wanted. It’s not close to what we wanted.” Hmm. Well. Quibi is also not close to what users wanted, so that’s that. What do people want to do with their phones? They want to TikTok. And while Katzenberg is busy blaming the pandemic, young TikTok creators are amassing huge audiences and attracting the favors of everyone from top brands to Hollywood. Watch out Dance Glitch .


CONTENT PRODUCTION

Productions around the world are starting to reopen, as they did in South Africa a week ago. There, the Independent Producers Organisation (IPO) has criticized the South African regulator’s recent move to exempt television broadcasters from local content quotas during the pandemic, saying it contradicts the government’s plea to support local productions and could further weaken the already struggling sector. No such hand-wringing in Nollywood though, or anywhere else for that matter, as producers would just like to be able to go back to work.

Broadcast Media Africa took advantage of the slowdown to conduct an industry survey on “Creating ‘Quality’ Local Content For Global Digital Audiences” in which 56% of respondents identified the lack of structured financial infrastructure as the main barrier to creating “world-class” local content in Africa, while 30% mentioned the “expectation of higher production value and increased quality with reduced production budgets” as another big obstacle. Let’s talk about this a little bit because the widespread belief among western producers or broadcasters that “producing content is cheap in Africa” is indeed a profound misconception that regularly leads to frustrations and disappointment on both sides. In reality, Africa’s lack of infrastructure and scarcity of skilled professionals drive prices up in content production like in many other sectors. Here’s a down-and-dirty benchmark of TV series prices so that we can all know what we’re talking about: across Africa in small to medium markets, local free-to-air (FTA) stations may pay as low as $2,500 to produce a one-hour episode; in Nigeria producers may work with $5-15,000/episode (raised from sponsorships for an FTA broadcast or through a Pay-TV commission); in South Africa national broadcaster SABC used to commission shows for $40-70,000/episode; in Francophone Africa Canal+ can invest up to $60-100,000/episode (but only if it really really wants a show); and finally at the top of the range Mnet/Showmax can put up to $100-150,000/episode for its most premium South African projects. Does this mean that producing a one-hour episode of scripted TV in Africa actually costs that much? Not at all. These are just the prices that broadcasters are able to sustain based on their own business models. To meet these budgets, producers have to call in various favors to access free equipment or locations, and cast and crew often work for very little. If so much African content looks bad, it’s often because people are not paid properly so they will cut corners to go fast and move on to the next job. My personal assessment is that it would probably cost as much to produce a medium-range quality show in Africa than it does in Europe, so roughly between $150-600,000/episode. Thought that Netflix’s Queen Sono looked good? It was made for $400,000/episode. 


ANIMATION

Remember Niyi Akinmolayan’s lovely coronavirus animation? Well people loved it so much that Anthill produced a second episode, turning what could have been a one-off PSA into “an educational series about two smart kids teaching everyone about good health, culture and science” for which the studio is now raising funds. That is exactly the right way to leverage a cause-led or charity-funded project: use an opportunity emerging from a particular context (in this case the need for an educational video during a global health crisis) to create or pilot characters (IP) that can outlive that particular context.

HUSTLE & FLOW #12: Africa’s visual artists make waves, UFC is 1st US sports league to reopen, South Africa’s TV industry returns to set, and more

Dear colleagues and friends,

If you’re like me, you may by now be experiencing some serious COVID-fatigue. Perhaps you have stopped keeping track of the number of deaths in your country (unless you’re in Madagascar or Lesotho or Uganda or any other country where the recorded number of deaths is actually 0). Perhaps you’ve reached peak Zoom while at the same time being filled with dread at the thought of having to face traffic or public transportation to return to the office. Perhaps you are dreaming of eating food that you have not cooked yourself.

In any case, with the easing of strict confinement measures and the establishment of new post-lockdown health regulations globally, there seems to be some light at the end of the tunnel for several sectors of the Entertainment industry. And we are ready to go towards the light.

This week in HUSTLE & FLOW, I’ll talk about some of the continent’s visual artists who are making waves from New York to Mathare, why the UFC becoming the first major US sports league to emerge from the lockdown is relevant to Africa, and South Africa’s TV industry going back on set

If you have received this email from a friend or colleague, please subscribe here to make sure that you don’t miss any future edition of HUSTLE & FLOW. Also remember that you can visit the archives at any time for more insights. 

I always love to hear from you so do email me at marie@restless.global with your questions, comments, or suggestions. 

Happy reading to all,


Marie



GENERAL RESCUE MEASURES

After a first phase understandably focused on the immediate health emergency, regional and international development actors are now bringing their attention to specific sectors, including the tech and creative industries. Pan-African infrastructure investment platform Africa50 has announced a $800,000 COVID-19 Relief Support Initiative, which aims first to support the continent’s fight against the pandemic, while a second phase will focus on the deployment of technology-enabled solutions through Africa50’s Innovation Challenge initiative. French entrepreneur-focused development bank Bpifrance has launched a challenge for African startups seeking to raise between 1 and 3 million euros to finance their expansion to Europe, and especially France. Qualified African startups would either already have small ongoing operations in France or Europe, or have secured partnership agreements or letters of intent from customers. Applications close on September 30th.

On the Entertainment side, guidelines for a potential response are starting to emerge. East African investment fund HEVA has released its report on the impact of the COVID-19 crisis on the Kenyan creative ecosystem, with the goal of informing future initiatives by the fund and its institutional partners which include the British Council, Goethe Institute, AFD and UNDP. The document confirms the brutal loss of revenue experienced by many practitioners, and proposes resilience and recovery measures such as the establishment of artist representation, savings and credit unions; the improvement of royalty collection mechanisms; various tax, financial and administrative incentives; and an ambitious scheme for the government to employ artists to produce or perform public social works around the country. HEVA is currently conducting similar studies in the other East African markets where it operates. Across the continent in Senegal, the Direction of Cinematography also recently released a report on the impact of the crisis on the country’s cinema and audiovisual sector which highlights the strength of the blow, with the postponement or cancellation of 47 film, series and commercial shoots since March, the halted construction of a 7-screen multiplex cinema, the delayed delivery of a feasibility study for a major AFD-backed Cinema Village project, the closure of film schools, and the cancellation of numerous festivals and events. Finally, the European Commission and the Organization of the African, Caribbean and Pacific States (ACP) have launched CultureXchange, a “knowledge and skills sharing platform” which aims to be a hub for stakeholders from the cultural and creative industries, and a project incubator highlighting funding opportunities and collaborative schemes from the private and public sectors. 


INTERNET INFRASTRUCTURE

Angola Cables has recorded 170% growth in traffic on its IP network during the first quarter of 2020 compared to the same period last year. Although a large portion of the growth can be attributed to the rapid surge in demand following the lockdown, additional traffic has also been caused by the opening of points of presence in the primary global traffic exchange locations in recent months. 


MOBILE

South Africa’s Vodacom has switched on Africa’s first-ever 5G mobile network in Johannesburg, Cape Town and Pretoria, with more rollouts scheduled for other parts of the country. Vodacom used the temporary additional spectrum allocated by the country’s telecoms regulator ICASA for the duration of the lockdown to fast track its 5G rollout. Vodacom expects the deployment of 5G to facilitate the management of the 40% increase in mobile network traffic and the 250% increase in fixed traffic that the telco has experienced in the past few weeks.

I’ve talked in previous editions of HUSTLE & FLOW about the big prize that Ethiopia’s liberalization of its 100 million consumer market represents for telcos, as the government gets ready to offer two new licenses and sell part of the state-controlled monopoly, Ethio Telecom. The Ethiopian Communications Authority’s consultation period on the terms of these first competitive telecoms licences ends today May 11thKenyan operator Safaricom, one of several serious bidders, is determined to enter the Ethiopian market despite the country’s central bank announcing that it would only allow locally-owned financial institutions to offer mobile money services. This means that Safaricom will need an Ethiopian partner to locally operate its M-Pesa service, which accounted for 33.6% of the telco’s total revenue last year. The winning bids are expected to be announced after Ethiopia’s August 29th general elections.

While mobile operators across the continent are leveraging the current surge in demand caused by lowering data prices and acquiring new customers, Econet Wireless goes Hara-Kiri in Zimbabwe. The operator reportedly hiked its data prices by up to 225% overnight last week. Cash-squeezed Zimbabweans took their anger to social media with the hashtag #EconetMustFall. Econet didn’t offer an explanation for its tone-deaf move, however it seemed to follow an April 20th letter to its suppliers in which the company said it was experiencing tough trading conditions and ironically asked suppliers to cut their prices by 20%.


FASHION

The COVID crisis has spurred unprecedented collaborations around the world, whether it’s been between governments and the private sector, citizens of different generations, or competitors in the same industries. In Africa, fashion is one of the areas in which this change of mindset is the most apparent. Designers are now collaborating to source material together in bulk and share factory space, while industry leaders from across the continent are joining forces to map out the future of fashion. The topic was central to the recent discussion hosted by Lagos Fashion Week’s Omoyemi Akerele, who brought together her counterparts from South Africa, Senegal, Uganda, and Ghana. The speakers shared various ideas, including developing a joint fashion education curriculum, standardizing the criteria for the selection of designers who show at the regional Fashion Weeks, share fundraising efforts, and coordinating Fashion Week calendars across the continent to allow more people (designers, buyers, journalists) to travel from one to the other, while at the same time also considering the option of limiting travel by having designers only show physically in their home countries and in the rest of the world through a joint online platform. 

The underlying impetus for fashion industry leaders is to foster the development of a strong pan-African regional market and become less reliant on the West as the main export destination and on Asia as the main supplier of fabric and other raw materials. In this effort, the fashion sector is set to benefit enormously from the launch of the African Continental Free Trade Area which was initially scheduled for July 1st but postponed due to the crisis, as intra-African export tariffs are currently prohibitive. The mammoth AfCFTA project would unite 55 nations into a $3.4 trillion free-trade economic zone, the largest trading bloc since the World Trade Organization formed in 1994.


VISUAL ARTS

Quartz has a lovely piece this week on the remarkable resurgence of acclaimed Nigerian modernist painter and sculptor Ben Enwonwu, after the recent discoveries of some of his long-lost works in private homes in London and Texas. Enwonwu is widely considered to be one of Africa’s greatest contemporary artists and known for fusing Western techniques with indigenous aesthetics. The entire Quartz article is worth reading for its analysis of concepts such as artistic influence, the white gaze, and authentic Africanness, which at some point were used to question Enwonwu’s work. He passed away in 1994. In 2018, his Tutu (Africa’s Mona Lisa) sold at a record $1.6 million, and in 2019, his portrait of Christine sold at $1.4 million, or seven times its valuation.

Ben Enwonwu’s distinguished legacy can only inspire young Nigerian contemporary artists. For Oyinkansola Dada, founder of online art gallery POLARTICS, building art ecosystems in Africa implies not only supporting young artists but also inspiring younger Africans to collect: “A lot of the works being created by the artists we work with engage with themes that are relevant to African millennials, and I think it’s important that a great proportion of these works end up in their hands.”

Another leading contemporary African artist in the news this week is Billie Zangewa, who was just picked up for representation in New York by the prestigious Lehmann Maupin gallery. Zangewa hails from Malawi and South Africa and works with silk fabrics to create scenes that explore her own personal narrative and celebrate womanhood. Lehman Maupin is showcasing one of her pieces in its online booth as part of the Frieze New York art fair, which opened last week.

From the chi-chi New York gallery world we move to the overcrowded Mathare slum in Nairobi where a street artist called Msale is creating giant murals to bring public health messages about COVID-19 to half a million people. Msale is far from the only one in his line of work. In fact, Nairobi has a long tradition of using street art to incite positive change, and a vibrant community of street artists who are recognized on the world stage, showcased at global festivals and regularly commissioned by local or international organizations, businesses and NGOs for original murals. My personal favorite is the graffiti artist WiseTwo.


MUSIC

Following the recent news of its expansion to 17 new African countries, Apple Music has launched a month-long celebration of African artists with exclusive playlists curated by music heavyweights Angélique Kidjo, Davido, Sauti Sol, or Jimmy Dludlu. Meanwhile Spotify has rolled out its Premium Family plan in South Africa, granting six people access to Spotify Premium through one shared subscription for $5.39 per month. If you remember our music focus in HUSTLE & FLOW #10 and keep your ear to the ground, you will notice the rumblings of Africa’s long-awaited music streaming boom getting louder.


SPORTS

Football fans can breathe a sigh of relief as Germany’s Bundesliga, which had been on pause since March 13 because of the pandemic, has been given the green light to resume its standard calendar from May 16. However, games will be held behind closed doors and without physical audiences. No such luck for the French Ligue 1, which was not given the go-ahead to restart its season. One of the consequences of the COVID crisis in the sports sector has been the growth of esport, as we’ve discussed previously in HUSTLE & FLOW. Sébastien Audoux, the head of digital sports at Canal+, believes that esport will stick around post-COVID because it represents strong competition for second or third-tier sports, especially if these esports games are grudge matches between popular Ligue 1 stars and are properly advertised.

Meanwhile in America, the Ultimate Fighting Championship’s UFC 249 was the first major US sporting event to emerge from the shutdown when it took place last Saturday in Florida (where, in one of these inexplicable Florida quirks, employees of professional sports organizations are deemed essential workers). Founded in 1993, the UFC was valued at $2 million in 2001 and sold to Endeavor in 2016 for around $4 billion, so that's serious business. Pre-COVID, the UFC was in discussions with French media giant Vivendi and its newly launched Afro-European MMA League (ARES) to expand on a partnership that started with a first MMA event in Dakar in December 2019. While the UFC plans for at least three more events in the US in May, Vivendi’s ARES cancelled all its competitions previously scheduled to take place in Africa and Europe in 2020. But considering the commercial potential, “ce n’est que partie remise,” as we say in French.


BROADCAST

Nigeria’s Federal Government has granted a two-month licence fee waiver to terrestrial broadcast stations to support the sector during the pandemic, while South Africa’s ICASA has exempted national broadcaster SABC from the 65% local TV content quota which was becoming impossible to fulfill since many local production houses were forced to shut in March.


FILM 

French sales group Wide Management has picked up worldwide rights (outside of Ethiopia) for Running Against the Wind, Ethiopia's official entry for the best international film Oscar directed by Jan Philipp Weyl. The film will be presented to buyers next month at Cannes' virtual film market, the Marché du Film Online.

The trailer for upcoming Nigerian-American fraternity drama Tazmanian Devil is here. The film, about a newly immigrated Nigerian student who "struggles to balance his conflicting desires of joining a college fraternity and bonding with his strictly religious father" is director Solomon Onita’s first feature. It boasts a pretty serious pedigree with Beasts of No Nation’s Abraham Attah and When They See Us’ Adepero Oduye starring and American music moguls Birdman and Benny Boom producing.  


VOD

Netflix has announced that its second African original series Blood & Water, a youth-led drama series directed by the award-winning Nosipho Dumisa, would be released on May 20Blood & Water will follow the story of a teenager who discovers shocking secrets about her family's past whilst trying to navigate life at a South African high school. Also coming to the service this week are Nigerian films Anchor Baby, Living in Bondage: Breaking Free, Delivery Boy and She is, as well as romantic comedy Cook Off, Netflix’s first acquisition from Zimbabwe. In parallel, the streamer has introduced its ‘Made in Africa’ collection, a curated list of African series, documentaries and films, to celebrate Africa Month and demonstrate Netflix’s commitment to the continent. 

On a global scale, VOD has been a great winner of the COVID-19 pandemic. But the industry is starting to wonder about what awaits when the world emerges from the health crisis only to jump into an economic one where consumers will be rethinking their household expenses. Although Africa is still far behind and consumers there are not yet overwhelmed by a proliferation of streaming services like they are in the west, they might also experience a sharp drop in their disposable income. Bloomberg has an interesting opinion piece highlighting three ideas the industry should explore: incorporate ads but in new, inventive ways; reintroduce content and internet bundles (already the case in Africa); and make VOD apps more of a social community akin to Instagram and TikTok. All of these suggestions are very relevant to the perennially cash-sensitive African market.


CONTENT PRODUCTION

South Africa’s film production and film servicing industry (which normally caters to big budget Hollywood or European projects) has been hard hit by the coronavirus shutdown. Last week the first steps were taken towards the reopening of film sets and shooting resumed for several shows including SABC2's 7de Laan, kykNET's Binnelanders, and SABC1's Skeem Saam. Although South Africa has the most developed TV industry on the continent, many challenges still pave the way of TV series creators (even in a non-COVID context), as Tjovitjo director Vincent Moloi expressed in an enlightening Facebook post. The Tjovitjo pilot was shot 7 years ago and rejected by all South African broadcasters. The self-funded series sat around for 4 years before the SABC took a gamble and licensed it. Tjovitjo went on to break the South African viewership record for a drama series and won 7 South African Film & Television Awards. It is now on Netflix. Many African TV producers can relate to Vincent Moloi’s experience with Tjovitjo. When my team and I launched The XYZ Show in Kenya in 2009, we also had to fund the project independently, as broadcasters were not financing local content at the time. We offered the program to Citizen TV for free. It instantaneously became one of Kenya’s most popular shows, won some awards, made headlines around the world, and remains on the air more than 10 years later. Although the industry has seen progress during the past decade, many stubborn hurdles remain (such as broadcasters’ risk-averse stance) and the disruption caused by the arrival of Netflix and other global players is more than welcome.


ANIMATION

The coronavirus crisis has created a big opportunity for the global animation industry, writes producer and writer Aaron Simpson. Contrary to live-action, the animation sector has faced fewer layoffs thanks to a quick transition to a fully remote workflow, which has also allowed studios to respond to the surging demand for new content. What is preventing a similar phenomenon from taking place in Africa is largely access to funding (for equipment, team, development) - the quintessential African dilemma. Still, we know that African animators never stop working, even if their work is not always seen. Triggerfish, Africa’s leading studio based in Cape Town, is shedding the spotlight on young animators from across the continent through its “10 second animation competition.” The Triggerfish Academy’s next tutorial and competition will kick off mid May.

And I’ll finish this edition of HUSTLE & FLOW with the best video I’ve seen all week: Dance Glitch. They’re young guys, they're from Nigeria and they’re on TikTok, so you know it’s going to be good.

HUSTLE & FLOW #11: Safaricom for the win, Flutterwave launches e-store for SMEs, Cinema exhibition meets its future, and more

Dear colleagues and friends,
 

A new month has started, for many the second or even the third spent in social isolation, and the coronavirus continues its steady reshaping of our world.

While the health situation shows slow, incremental progress in Europe and parts of the US, in Africa some are starting to wonder where exactly is the disaster we’ve been promised for weeks. At the time of writing, there had been 1,801 COVID-related deaths on the entire continent (most of them in Northern Africa), according to the African CDC. That’s 60% less than the number of COVID deaths currently being recorded in the US per day. In Africa, that’s just any other Tuesday. Sure, the worst could still happen. But maybe it won’t.

For Senegalese economist and writer Felwine Sarr, the widespread belief that Africa will be hard hit by the disease shows the persistence of Afro-pessimism in the global discourse. “Negative representations of Africa are so entrenched that you don't even bother to look at reality. And when present reality goes against representations, we then move them into future time. Even if the continent is doing quite well, we must predict a disaster. Everything, except admitting that Africa is doing well against the COVID-19. Currently, the new narrative is to say that there may not be a disaster but that we will starve to death because of the economic crisis. Always the same miserable image.”

HUSTLE & FLOW is a place where we look at the other side of the story. This week, among other tidbits I’ll talk about Safaricom’s continued, unchallenged dominance of the Kenyan mobile market, Nigerian fintech startup Flutterwave’s clever foray into e-commerce, and the COVID-sponsored preview of The Future of Film Distribution, which might look like a horror movie to some but that I am inclined to see more as a thriller.

Continue to engage with me by emailing me at marie@restless.global, or writing me @marieloramungai on LinkedIn, Facebook, Instagram or Twitter if you prefer (no, I am not on Tik Tok). And if you have subscribed recently and want more HUSTLE & FLOW, you can catch up on previous editions at www.restless.global/hustleflow.

Happy reading to all,


Marie



GLOBAL RESCUE MEASURES

European leaders have pledged to raise €7.5 billion during an online conference taking place today May 4th, as part of an “international alliance” that aims to “bring together the world’s best – and most prepared – minds to find the vaccines, treatments and therapies we need to make our world healthy again”. This effort would include the “strengthening the health systems that will make them available for all, with a particular attention to Africa” (they haven’t read Felwine Sarr).

The Facebook Journalism Project (FJP) announced a $390,000 investment to support African journalists during the COVID-19 crisis, split between $140,000 in grant money for South African news organizations that will be channelled through the International Center for Journalists, and a $250,000 video training programme for 10,000 video journalists across the continent. Facebook also committed $100,000 to fund a Video Storytelling Fellowship in Kenya this year. 

The Bamako-based African Culture Fund is launching the SOFACO project, a solidarity fund for African artists and cultural organizations to support “resilience and artistic creation” in the fight against COVID-19. More information should soon be posted online.


INTERNET INFRASTRUCTURE 

I’ve already talked about the major investment opportunity presented by the boom in demand for data centers services in Africa (which is rising two to three times faster than supply, according to research by Xalam Analytics) in previous editions of HUSTLE & FLOW. This week, Quartz has a great in-depth article about Amazon Web Service’s roll out of its first Africa data centers in Cape Town last month. While Amazon has been present in Africa for 15 years, it has so far chosen not to operate its e-commerce platform on the continent, focusing instead on the much more profitable web services business. While African numbers are always hard to come by, AWS’s just-released global Q1 results showed a 33% growth in revenue to $10.2 billion (around 13.5% of Amazon’s total revenue) thanks to increased traffic to clients such as Zoom and Netflix during the global lockdown, illustrating what will be a long-term trend for Africa as it already is in the rest of the world.


MOBILE

Kenya’s leading mobile operator and national treasure Safaricom wins the gold star this week with a slew of positive news. First, by comparing Safaricom’s 2019 results of $2,3 billion to the combined revenue of $2,7 billion for all Kenyan telcos, Techweez showed that Safaricom was responsible for a staggering 86% of the total revenue in the Kenyan mobile industry last year (as in previous years). Perhaps even more impressively, Safaricom made roughly the same amount from mobile data alone ($336 million) than the rest of the industry generated overall ($372 million). This number also represents a 12% increase for Safaricom in mobile data revenue, which can be attributed to the growth of 4G smartphone use and the introduction of more favourable data packages that included non-expiry data plans. 

On the back of these results, Safaricom announced a device financing plan called Lipa Mdogo Mdogo (‘pay in instalments’), which will allow rural and low-income subscribers to switch from 2G phones to smartphones by paying a daily fee of $0.19. The program is currently being piloted in partnership with TeleOne and Google, with the objective to provide access to 4G smartphones to one million customers. Not stopping there, Safaricom also launched a new partnership with Visa to develop products that will support digital payments for M-Pesa customers. Subject to regulatory approval, the wide-ranging partnership would cover over 24 million M-Pesa customers, more than 173,000 Lipa Na M-Pesa merchants from Safaricom, more than 61 million merchant locations throughout Visa’s global network, and over 3.4 billion Visa cards in more than 200 countries and territories. Although Safaricom has been for several years facing criticism by competitors over its monopoly of the market, and even calls for its business to be split, so far the Competition Authority of Kenya has sided with the operator, agreeing with its argument that its “dominance position (has) been acquired through innovation”.


VISUAL ARTS

Still in Kenya, Al Jazeera looked into how visual artists are coping with the COVID crisis. Besides the shut down of galleries which limits their ability to sell, artists are also struggling to find the materials they need to produce their art due to the closing of art supply shops. The unavailability of art material and art tools in Africa is something few people are aware of, but it’s one crucial challenge in the typical journey of most African visual artists. When we started The XYZ Show in 2009, my team and I not only couldn’t source technical material like foam latex locally (we ordered it from Germany), but we also couldn’t find basic clay sculpting tools, because Kenya’s sculpting tradition was based on soapstone carving and not clay. So we had to make our own tools. Over the years, I also used my travels to bring back fabric gloves (to use inside the puppets’ hands) gifted by our friends at Les Guignols, art or history books, and Japanese drawing pens for my co-founder, the cartoonist Gado, who has a great profile in The New York Times this week. But as Plato said, necessity is the mother of invention, and after teaching ourselves how to overcome these obstacles, we were then able to train others.


E-COMMERCE

Nigerian B2B payments startup Flutterwave has launched Flutterwave Store, an eBay-inspired portal for African merchants to create digital shops to sell online, with pickup and delivery handled through partnerships with local logistics providers, such as Sendy in Kenya and Sendbox in Nigeria. Although the product had been in development for some time, Flutterware accelerated its launch to help SMEs and traders move their businesses online in response to the COVID crisis. This seems like a pretty smart move by one of Africa’s most successful fintech startups, which processed 107 million transactions worth $5.4 billion in 2019. Recently Flutterwave also established partnerships with Visa, Alibaba’s Alipay and Worldpay FIS, and just raised a $35 million Series B, so they have all the tools to make this work.

Flutterwave Store is not the only option for small vendors to open online shops in Africa. Facebook Marketplace is available in Nigeria, for example, and of course there’s Jumia Marketplace. Talking about Jumia, former BBC Africa Business editor Larry Madowo released a sharp piece this week entitled “Jumia: The e-commerce start-up that fell from grace”, in which he analyzes the platform’s rocky year since its introduction on the New York Stock Exchange. As I’ve written before, this global lockdown might be the “now or never” moment for Jumia. I was even rooting for the team to succeed after the departure of Rocket Internet. But one particular bit of information in Larry’s article left me doubtful: in 2019, Jumia’s two co-CEOs (both French) and its CFO collectively earned $5.3 million while the company’s losses rose 34% to $246 million, “the eighth straight year without profits”. As most seasoned African entrepreneurs know well, one of the keys to success in a low-margin market such as Africa, in good times as in bad, is to strictly control the burn rate. If Jumia’s leadership doesn’t understand that, it doesn’t bode well for the company’s future.


MUSIC

Tributes have been pouring out from around the world following the (non-corona-related) death of legendary Nigerian Afrobeats drummer Tony Allen last Thursday, aged 79. Allen started playing with Fela Kuti in the 1960s and recorded over 30 albums with him and the Africa '70 band, prompting Fela to say that "without Tony Allen, there would be no Afrobeat." Allen formed his own group in 1979 and developed a new polyrhythmic sound which he called "afrofunk," before moving to Paris and collaborating with a number of renowned African artists, such as the late afro-jazz pioneers Manu Dibango or Hugh Masekela

Over on the francophone side of the continent, Canal+, its African channel A+, and sister company Universal Music Africa will be holding a major online musical event dubbed “Africa at Home, Together against Corona” on May 16th, with contributions from leading artists such as Fally Ipupa, Kiff No Beat, Magic System, Vegedream, Singuila, Toofan, Locko, Serge Beynaud, Tenor, and Hiro.


SPORTS

The Last Dance, the ESPN/Netflix 10-part series about Michael Jordan’s final season with the Chicago Bulls, has become the world's most popular documentary in the two weeks since its debut. According to Parrot AnalyticsThe Last Dance has surpassed Tiger King as the "most in-demand documentary in the world" on Netflix (restoring my faith in humanity), while also ranking as the most-watched documentary series in the history of ESPN. Adding to the thrill, the series was released early to take advantage of the pent-up demand for sports content during the global lockdown, despite the fact that the crew still hadn’t finished putting together the documentary. The team is scheduled to finish the final episode on May 10, just a week before it is due to air on ESPN on May 17.


FILM

With the film festival calendar thrown into chaos by COVID-19, the Tribeca Film Festival and YouTube have partnered to present a 10-day online showcase dubbed We Are One: A Global Film Festival, with the support of 20 other global festivals including Cannes, Toronto, Sundance and Venice. The online event will kick off on YouTube on May 29th with a lineup of films (largely expected to be library titles and not new movies), shorts, documentaries, music, comedy, and talks. 

Cannes festival darling Rafiki, a film on a young lesbian couple in Nairobi by Kenyan director Wanuri Kahiu, remains unscreened in Kenya as its ban was upheld by the country’s High Court last week. The judges ruled that the Kenya Film Classification Board’s ban on the 2018 film "does not in any way violate Artistic Freedom of Expression, but instead protect the society from moral decay." This is not the first time that an LGBTQ film is censored in Kenya, or elsewhere for that matter. In fact, local cultural sensitivities and strict censorship laws routinely limit filmmakers and artists’ ability to tackle subjects such as homosexuality, religion, and politics across the continent.


FILM DISTRIBUTION & VOD

Meanwhile, the future of global film distribution is happening right in front of our eyes. Last week, Universal revealed that Trolls World Tour, the sequel to its 2016 animated movie, did better in its first three weeks of VOD rental than the original film did over its entire five-month run in US cinemas. With nearly 5 million unique rentals since its April 10th debut amounting to $100 million in digital rental fees, and without the need to split revenue 50-50 with theaters, Trolls has already generated $77 million in revenue for the studio. The theatrical exhibition world has long feared (and fought against the idea) that bypassing theaters might become a viable model of distribution for studios - and here it is. AMC Theatres, the world's largest cinema chain which just stared bankruptcy in the face, swiftly announced that it would no longer play any of Universal's films

What does this mean for the future of cinemas in Africa? Well, first of all, out of Africa’s 54 countries, only South Africa, Nigeria, Egypt, Algeria, and Morocco have what could be generously called “proper” physical cinema networks. Everywhere else, the number of cinemas is insignificant. For countries that have no or almost no cinemas, the premium digital release of new Hollywood, Bollywood, and the rare local films is a no-brainer, especially considering the fast-tracked digitization of all economies prompted by the current crisis. 

For the five countries mentioned above, the picture is more complicated, as they also have sizable local film industries that largely depend on local box office revenue to survive. Because of the overall stage of digital development that these countries are in (more specifically in terms of bandwidth, cost of data, ease of payment, disposable income, etc), digital revenue will not be immediately sufficient to replace box office revenue. This means that there is still a need to protect, and - in the case of Nigeria - grow, the local cinema networks, while preparing for the inevitable evolution of the market. At this stage, two clarifications are necessary. First, premium VOD (PVOD) refers to the early release of a film (at the same time as the cinema release or soon after), at a premium price ($19,99 in the case of Trolls), and on a transactional basis (the customer only pays to rent that one film, as opposed to an all-you-can eat subscription such as Netflix). Second, not all content is created equal. Some films can be well-suited to a digital-only release, if their budget is limited and they appeal to a niche audience. Others, which we could call “event films” or “blockbusters”, are more expensive to make and need to be exploited fully throughout all windows, in cinemas and online. This is why I believe that in order to get the best of both worlds, cinema exhibitors in these countries should aim to develop a mixed strategy based on the geo-blocking of specific locations. With this approach, new films would still be released in theaters, but also online on the exhibitors’ own platforms in areas, cities or regions that are not served by any cinemas. 

To finish with VOD news this week, Nollywood platform iROKOtv, crushed between lower revenues from users paying in the devaluing naira and infrastructure bills to settle in dollars, has announced that it would furlough 28% of its employees in Nigeria. Meanwhile, streaming giant Netflix is going full speed ahead with its African expansion plans, renewing its first African original Queen Sono for a second season, greenlighting another African original, a South African dance drama called Jiva!, while bringing online African favorites such as JerusalemaIntersexions, and Love is War.


COMICS

I’ll leave you with Roye Okupe’s YouNeek Studios, which quickly blew past its Kickstarter goal of $5,000 to raise over $13,700 for its new comic book project Iyanu last week. YouNeek is behind last year’s viral animation Malika, produced in partnership with Anthill, so they’re not new at this. There are still 26 days to go on the Kickstarter - chip in if you can!

HUSTLE & FLOW #10: Warner Music invests in Africori, Apple Music expands to 17 African countries, insights from the Indian VOD market, and more

Dear colleagues and friends,

In recent weeks, voices across the continent have risen in favor of African governments coming up with local strategies to the coronavirus crisis rather than replicating the prevention methods of wealthier countries. And now, this seems to be happening.

On April 20th, Ghana became the first African country to ease its lockdown, citing improved testing and tracking capacity and the "severe" impact of the restrictions on the poor. South African President Cyril Ramaphosa also announced an easing of the confinement measures from May 1st, and provided this week’s comic relief when he struggled to demonstrate how to put on a face mask on camera. It’s clear from this video that the man hasn’t had a good night’s sleep in a while.

And in Madagascar, President Andry Rajoelina launched Covid-Organics, a local remedy based on artemesia, a plant originally from China but well-known across Africa as a treatment against malaria, both in its natural form and mixed with other molecules in antimalarial drugs. Responding to the skeptical western media, a Malagasy summed up the situation in a viral Facebook post: “Our president proposed his solution on a Malagasy channel in Malagasy for Malagasy people. It does not concern you. In Madagascar, when our car breaks down, we don’t wait for the car maker’s diagnosis or for original parts to arrive, we fix it and we drive.”

In the Entertainment space like everywhere else, African entrepreneurs will also find ways to fix their businesses and keep going, especially since the vibrancy of the continent’s creative and cultural output remains undeniable. This week in HUSTLE & FLOW, the focus is on the music industry, with the announcement of two major news: Apple Music’s expansion to 17 additional African countries and Warner Music’s investment in Africori.

If you’ve missed a previous edition of HUSTLE & FLOW, you can always access the archives at https://restless.global/hustleflow. For questions, comments, or if you’re looking to brainstorm ideas on how to pivot your business or investment strategy in this new world, I continue to offer free 30-min sessions. Just hit me up at marie@restless.global.

Happy reading to all,


Marie

GLOBAL RESCUE MEASURES

Afreximbank rolled out a $3-million grant to support the African Union's effort to combat the pandemic, adding to its other relief initiatives including its $3-billion Pandemic Trade Impact Mitigation Facility and another $200 million set aside to finance the production of COVID-19 equipment and supplies within Africa.

Besides his meme-worthy masked performance, last week South African president Cyril Ramaphosa also launched a $26.3 billion rescue package, equivalent to 10% of the country’s GDP. Meanwhile however, South Africa’s film professionals have been complaining about the difficulty to access the $7.9 million relief fund promised to the sector because the requirement to show proof of lost contracts is too strict for an industry that relies majorly on verbal agreements.

And in Nigeria, ordinary Nigerians are stepping up to fill the country’s major social-welfare gaps. Some have set up food banks, including musician and Nollywood star Banky W, while a group of tech entrepreneurs from companies such as Hotels.ng, Iroko, or Paystack have teamed up to crowdfund We Are Together, a COVID-19 relief fund for Nigerians facing financial difficulties as a result of the pandemic. 


MOBILE

Loon, the high-altitude 4G connectivity company for hard-to-reach places owned by Alphabet (Google), has launched the first balloons that will provide internet access to rural Kenyans, in partnership with mobile operator Telkom. The approval of Loon’s service deployment by the Kenyan government, which had been stalled for a while, was finally obtained a couple of weeks ago - no doubt thanks to the forced digitalization of many activities spurred by the COVID lockdown. The service should be turned on in the coming weeks once testing is completed. 

In a similar drive to bring mobile connectivity to underserved areas, the Ghana Investment Fund for Electronic Communications (GIFEC) and the OpenRAN provider Parallel Wireless have partnered to deploy over 2,000 OpenRAN sites across the country. Approximately 1,020 communities in Ghana receive no mobile signal. 

Meanwhile, in Nigeria Airtel is rolling out its Ultra Plans, which aim to offer Home Broadband services at discounted rates, and in Tanzania Tigo has launched a cross-border mobile money service that allows Tigo Pesa customers to send and receive cash from M-PESA in Kenya, MTN in Uganda and MTN and Airtel in Rwanda. 

Increased capacity and lower prices for both internet access and mobile money services across Africa have already become silver linings of this coronavirus crisis. And for those of you interested in learning more about how mobile networks are built and managed, Safaricom has a great article on its company blog.


E-COMMERCE

In Nairobi, shoppers can now buy fresh produce distributed by Twiga Foods on Jumia Kenya, thanks to a new partnership between the farm produce aggregator and the ecommerce platform. This is just the latest example of a food retailer, supermarket or restaurant partnering with a logistics company to ease delivery of food across Africa in this new context of social distancing. For WeTrackers, what we are witnessing is more than just a trend but the real “unfolding of the African chapter of the food delivery business”.


FASHION

I continue to slowly make my way though the excellent Woven Threads program by Lagos Fashion Week, and this week I recommend this webinar with Tongoro founder Sarah Diouf on "How to Build a Direct to Consumer Brand". I've talked about Sarah and Tongoro before, and it truly is fascinating to hear about her journey, which took her from nothing to Beyonce wearing her designs in less than 4 years. Her business model, which is based on small-scale, sustainable production and online sales only, is particularly well-suited to the post-COVID world. She is definitely a creative entrepreneur (coming from a business and marketing background, she doesn't call herself a designer) to watch.


VISUAL ARTS

How are African visual art players holding up? Although galleries do worry about the loss of income, Valerie Kabov, Director of First Floor Gallery in Harare, argues that the African art world is in fact “much better positioned to address radical new circumstances than art sectors of the developed world.” Contrary to others, the African art sector is not “burdened by heavy operation costs, legacy infrastructure, over-regulation and conservatism of the older generation which makes implementation of new ideas difficult,” she says. “Most of us in Africa have started galleries in impossible situations and in impossible environments, so the notion that we don’t have means for hope is entirely untrue.” 


MUSIC

As I said in introduction, the African music industry hogged the limelight this week, first with the announcement by the world’s third largest music company, Warner Music Group, that it had invested an undisclosed sum in Africori, a panfrican digital music distribution, music rights management and artist development company. The new deal gives Warner Music Group’s access to Africori’s catalog and network of 6,500 African artists and 700 independent labels, and enables WMG to establish a presence in many African markets for the first time. This is not, however, WMG’s first Africa move. Last year, it invested in Nigerian record label Chocolate City and signed a licensing deal with Chinese streaming service Boomplay, which covers multiple regions in Africa. A couple days after WMG’s news, Apple announced that it was rolling out its Apple Music service to 17 new African countries making it available in a total of 30 countries on the continent. Apple also seemed to recognize the growing role African music and entertainment would play in its global expansion, as it made a point of mentioning its locally-curated playlists Africa Now, Afrobeats Hits and Ghana Bounce in its press release.

Music streaming is still in its infancy in Africa (although less so than video streaming) in terms of usage and revenue, and the mass market remains dominated by ringback tones (RBTs). Indeed, the vast majority of digital music consumers still purchase individual tracks from their mobile providers to use them as ringtone or “waiting tone” for their callers, a service for which mobile operators take more than 50% of the revenue. However, with the maturation of the market the digital music landscape has been expanding. Boomplay, which raised $20 million last year, is the undisputed Africa leader with 36 of its 42 million monthly active users coming from the continent. Besides Apple Music and of course YouTube, other streaming platforms active in Africa are the French Deezer, Universal Music Group’s Digster, and several local services with telcos partnerships such as Safaricom’s Mundo or MTN Music Time, while world leader Spotify and Tencent-owned Joox are only available in South Africa, and Jay Z’s Tidal in South Africa and Uganda. 

But for Africa’s digital music boom to happen, the various players will have to figure out how to offer affordable mass market music services beyond Spotify’s or Apple Music’s current “premium” offers, as well as how to work with telcos to achieve reach and ease of payment. “That’s when we expand from a best case scenario of 10 million users to 100 million,” says Africori founder Yoel Kenan. In any case, the availability of more music streaming services locally is a boon for African artists, who previously struggled with local music sales because of piracy. With lucrative live shows on hold for the foreseeable future, the time is ripe for artists, labels, platforms and telcos to focus more on maximizing streaming revenue.


SPORTS

The Ghana Premier League has been given a temporary relief as television rights holder StarTimes allocated $5,000 to each of the 18 clubs in the top-flight as a partial payment of the rights deal, despite the cancellation of all live games. 

Meanwhile, sports leagues are trying hard to keep their fans entertained and engaged. The NBA has tapped South African music star Sho Madjozi to present its new weekly basketball and lifestyle YouTube show called “NBA Africa Game Time”, while Fifa is launching its inaugural Fifa eNations Stay and Play Cup, a 40-nation online tournament specifically created by the football federation and Electronic Arts for the lockdown period. Rapper Cassper Nyovest, cricket star Kagiso Rabada and Mamelodi Sundowns midfielder Sibusiso “Vila” Vilakazi will represent South Africa, alongside well-known gamer Thabo Moloi, who is the country’s current leading player on the Fifa gaming rankings on PS4. 


FILM

La Fabrique Cinémas, a development program for filmmakers from the global South that normally takes place every year during the Cannes Film Festival, will still be happening, albeit remotely. Film projects from Mozambique, Senegal and Egypt have been announced as part of this year’s class, which will be mentored by Algerian-French director Rachid Bouchareb.


BROADCAST

Two of South Africa’s most popular TV series, Uzalo and Isibaya, are the first daily dramas in the country to run out of episodes due to the current national lockdown and the cancellation of all on-going productions. SABC’s Uzalo is the number one TV show in the country with an average viewership of 10 million, while Isibaya, DStv’s longest-running telenovela that airs at the same time as Uzalo, is watched by more than a million people.

In Hollywood, studios and producers are itching to go back on set and have been working on plans to establish a new, social-distanced way of doing business that would include strict new health and safety standards for cast and crew. Besides the additional cost that these measures will involve, the main sticky point remains liability, as insurance companies are for now refusing to provide pandemic coverage. It will be interesting to see how African productions will adapt to a world in which possible infection may remain a long-term threat. My guess is that South Africa will follow the new global industry measures, but that those will be largely impossible to implement in other countries.


VOD

Chinese smartphone company Huawei has launched its VOD service, Huawei Video, in South Africa, with an initial 10,000 hours of content and 30 million short clips. Huawei Video joins the now-crowded list of streaming services locally available in South Africa which includes Netflix, Amazon Prime Video, MultiChoice's Showmax and DStv Now, DEOD, PCCW Media's VIU, VodacomVideo Play, Acorn TV and Apple TV+.

But what’s more interesting in the VOD space this week is Netflix’s release of its quarterly earnings report and announcement of a record 15,8 million accounts added between January and March - more than double its own January projections (before coronavirus spread worldwide) of 7 million additional subscribers for the three-month period. Actually, 7 million is exactly how many new subscribers Netflix added in the Europe, Middle East and Africa (EMEA) region only, which was its top growth region over the period by far. The United States and Canada, Latin America, and Asia Pacific territories only contributed between 2,3 to 3,6 million each. Unfortunately, Netflix’s public financials do not give any breakdown per sub-region or country, so we don’t know how many accounts were added in Africa. Netflix did warn shareholders that it expected growth to be more subdued going forward, but nevertheless immediately leveraged these impressive Q1 results to raise $1 billion in debt to fund new shows.

If you’ve followed HUSTLE & FLOW from the beginning, you know that I believe Netflix has won the streaming war in Africa before it even began. I will spare my early readers and won’t repeat myself, but you can see some of my arguments here. I do also think there are still opportunities in low-cost, hyper local mobile video (with a telco deal, otherwise don’t bother if you’re not Instagram Live or Tik Tok) and possibly for a strong AVOD contender, although of course advertising-based revenue models are going to suffer for a while post-COVID. I like to keep an eye on the Indian market as AVOD is dominant there, but also because its current explosive growth was boosted by a drastic slashing of mobile data costs and an increase in digital payments adoption - two phenomenons that the COVID crisis is accelerating in Africa at the moment. Overall, at the end of 2019 India had 14 million subscribers, $856 million in revenue from AVOD services compared to $268 million for SVOD, and the country’s 40 over-the-top (OTT) services had spent an estimated $360 million on original Indian content that year. Of course this is small by American or European standards, but these numbers are the stuff of dreams for the African film and TV industry.

And finally, to wrap up this week’s HUSTLE & FLOW on a funny (and truly impressive) note, I’ll leave you with this Naija-style Casa de Papel remake by young superstar mimikers Irokodu Bois. Enjoy!

HUSTLE & FLOW #9: “One World: Together at Home”, Instagram Live is the new TV, Africa's first lockdown series, and more

Dear colleagues and friends,


We seem to have now entered a new stage in this COVID crisis. After more than a month of confinement and with the fragile hope that the peak of the pandemic has been reached, European countries and American states are starting to consider plans to slowly re-open their economies. 

Meanwhile, according to experts and economists, Africa is either on the brink of a health, social, and economic disaster, or, with the myths of Western invincibility and Chinese dominance falling apart, presented with a major opportunity to finally complete the decolonization of the continent (and so, ultimately, a good thing).

Talking about China, it’s been fascinating to see the nature of Africa-Chinese relations evolve in the past couple weeks, starting with the shocking images of Africans being targeted and evicted from their homes in Guangzhou and the pushback from African governments, media and citizens, all of this taking place as negotiations over debt repayments were going on in the background. Indeed, not only is China Africa’s largest trading partner but it is also the continent’s biggest creditor. For now, China has indicated it will only consider potential debt relief measures on a case by case basis.

In any case, it is clear that turning inwards to develop local or regional skills, markets, and value chains will be crucial in a post-COVID world. But in the meantime, the only playground available for the African Entertainment sector is the internet. This week in HUSTLE & FLOW, I'll talk about how some artists have been building massive new audiences on Instagram Live, which is fast becoming the new television, and we'll get a sneak peek at Africa's first self-shot lockdown series.

Thanks to those of you who wrote recently with encouraging feedback and supportive words -- please continue to engage by emailing me at marie@restless.global.

Happy reading to all,

 

Marie


GENERAL RESCUE MEASURES

The African Union’s campaign to restructure the continent’s debt won a first victory this week with the G20 agreeing to suspend debt interest payments owed to them by some of the world's poorest countries for 2020. But the AU’s plan wants to go much further, seeking $44 billion of debt relief (out of a total $365 billion owed), a generalized suspension of interest payment for all of Africa’s economies, and a stimulus package of $100-150 billion. While the AU is facing strong opposition, especially from the US and China, it has the backing of several European leaders and international opinion is shifting in its favor. 

Recognizing that the moment presents a “cultural emergency”, UNESCO launched ResiliArt, “a global movement consisting of a series of virtual debates with key industry professionals and artists” to raise awareness on the impact of the current confinement measures on the culture sector. I looked everywhere but, sadly, there seems to be no financial measures attached to this initiative.


MOBILE

Kenyan operator Safaricom announced that it had recorded a 70% increase in fixed internet usage and a 35% increase in mobile data consumption due to the lockdown. Even more interestingly, internet traffic to Netflix has quadrupled from March to mid April in Kenya. 

The explosion in demand is pushing governments and operators across Africa to increase network capacity and lower prices, which we can hope will have a lasting positive impact. In Ghana, the National Communication Authority has allocated free additional spectrum to MTN and Vodafone for a period of three months, while browsing is now free with Airtel Togo and Opera. In South Africa, the Independent Communications Authority (ICASA) has received 35 applications from mobile operators seeking temporary allocation of new radio frequency spectrum. South African operators had been asking for access to additional spectrum for years, as it would allow them to serve a wider geographic area with existing towers while also carrying more data traffic, and thus help decrease the cost of data in South Africa. They can now thank COVID-19 for pushing the government to finally instruct ICASA to act on this in March. In parallel, Vodacom has also announced that it will invest $26.7 million over two months to boost its network capacity and increase the network’s resilience during the country’s national lockdown period.


E-COMMERCE

With COVID-19 fast-forwarding the adoption of e-commerce across Africa, Rwanda’s 2018 partnership with Alibaba, which led to the launch of Africa’s first e-commerce university programme developed with the African Leadership University (ALU) in Kigali, seems very prescient. ALU is also collaborating with Alibaba Business School's Global Ecommerce Talent (GET) Programme to organize the Africa edition of the GET Global Challenge 2020 entitled “Digital Solutions During COVID-19 and Beyond”, which is currently open for applications until May 4th. Successful applicants can win various prizes including up to $14,000 in business funding.


FASHION

The June 5th final of the annual LVMH Prize, the most prestigious fashion award for young designers, has been cancelled. Instead of postponing the event or moving it online, LVMH decided to split the 300,000 euros prize money equally between all of the eight finalists, including South African Sindiso Khumalo, and to set up a fund to financially support young design talent. Last year’s LVMH Prize winner was 26-year-old Thebe Magugu, another South African and the first African ever to pick up the prize, while Nigerian Kenneth Ize was a finalist. 

The rise of African designers to the select group of fashion’s most promising global talents is a testament to the potential of Africa’s fashion industry, which is also unfortunately one of the creative sectors hardest hit by the current economic shutdown. However, the African fashion community has also been quick to come together to discuss ways to build further resilience and prepare for a post-COVID future which is largely unknown, notably through a plethora of Instagram Live discussions and webinars. I talked last week about Lagos Fashion Week’s Woven Threads program. I particularly liked “How to Design like an African” by This is Us’ Oroma Itegboje: “First, state a multi-purpose intent. Then, find something beautiful that has been in Africa for a long time, and use what’s around you to create. Ask lots of questions.” All is said.


MUSIC

The place to be this weekend was online (ha!) at the One World: Together at home concert, which was organized by international charity Global Citizens, Lady Gaga, the United Nations and the WHO, and had as of Sunday morning raised $127.9 million for health and essential service workers. The ginormous event ran for 8 hours and was packed with A-listers like The Rolling Stones, Taylor Swift, Billie Eilish, Beyonce, Lizzo, Jennifer Lopez, Stevie Wonder, Paul McCartney, LL Cool J, as well as African artists Burna Boy, Black Coffee, Cassper Nyovest, Sho Madjozi, Nomzamo Mbatha, Idris Elba, Lupita Nyong’o, and Danai Gurira. The full video is now available on YouTube.

The forced digitalization of the live music experience is stretching the usage of existing platforms in an unprecedented way. I talked last week about how African DJs have been leveraging Instagram - which has clearly emerged as the platform of choice for all creatives seeking to transition their businesses online (more on this later). Now a group of European music industry organizations have launched the #NextStageChallenge, an online hackathon & support program to explore new solutions and business models to reshape the live experience in the digital space. The call for registration is open until April 24th, 2020. 


SPORTS

The Burundi Football Federation was one of the world’s last to finally suspend local matches, two weeks after the country confirmed its first case of coronavirus. Never heard of Burundian football? Well at least now you know it exists.

Faced with a total lack of live sports, fans now only have e-sports (as we previously discussed) or content about sports to fall back on. Supersport has announced that it will now broadcast a sports film every day for the next two months. The lineup will include Jerry Maguire, Senna, Any Given Sunday, Rocky 1-5, and Invictus. Meanwhile, the 10-part documentary series The Last Dance, about Michael Jordan and the 1990s Chicago Bulls’ journey pursuing their sixth NBA championship, is coming to Netflix today Monday April 20th.


VISUAL ARTS

Bloom Art’s founding director and curator Ugoma Adegoke has a great piece on CNN about private art repatriation and her work guiding wealthy Nigerians who have chosen to invest in art. “In the small arts community we have in Nigeria, private ownership is crucial: private collections serve as quasi museums, and collectors are custodians that can ensure art will remain here in the long term,” she writes.


FILM

Several African documentaries have been selected as part of the lineup at Hot Docs, one of the world’s leading documentary festivals, which was originally scheduled to run from April 30th to May 10th in Toronto but has been postponed with no clear indications so far as to which new form it will take. The festival would have opened with Sam Soko’s Softie, from Kenya, which had already played Sundance earlier this year. The other selected films include I am Samuel, by Kenyan director Peter Murimi and produced by Softie’s Toni Kamau, and Zibuye - The Occupation, by South Africa’s Dylan Valley. Kenya has a long tradition of documentary filmmaking and some serious local expertise. When I first arrived in Nairobi in 2006 from CNN New York, I was impressed to meet Kenyan Reuters cameramen with impeccable editorial skills who, contrary to their CNN counterparts at the time, were perfectly capable to produce and edit their own stories. It’s been great to see Kenya’s home-grown talent making headway on the world stage recently.


BROADCAST

TV Music group Trace has launched its new channel Trace Muzika focused on Ethiopian music. Coming after Canal+ announced its plans to enter the market at the end of 2020 and more recently its signing of a partnership with Nolawi Film Production for the provision of Ethiopian films, the Trace move confirms the interest of global players for the newly-opened Ethiopian media and communications market.

But what I really want to talk about this week is Instagram. And why in the broadcast section? Well, because Instagram Live has become the new television. Between funny skits from comedians such as unlikely breakout star FatherDMW, celebrity interviews, business experts panels or webinars, ‘Battle of Hits’ between music producers, DJ sets, game shows, and workout videos (finally!), there is so much content on Instagram Live these days that it is impossible to keep up. And a lot of it is of surprisingly good quality, a measure of the technology’s progress but also of the pent-up creativity that, with nowhere else to go, is suddenly being unleashed on what has long been the creative class’ favorite platform.

According to Instagram’s owner Facebook, Instagram Live usage has doubled in the past few weeks globally. Although there is currently no direct means of monetization, some creators have begun exploring brand placements and sponsorship, and in response to this Twitter thread, Head of Instagram Adam Mosseri has confirmed that it was working on ways to “support creators and artists using Live”, which I find really exciting. You can already watch Instagram Live on your computer or television rather than on your phone. My own suggestion from a viewer’s perspective: we need a TV guide for all these Lives with the ability to add programs to our calendars and create reminders, and an easier way to replay what you have missed.


VOD

As Disney+ reaches 50 million global subscribers and Quibi 1.7 million downloads, the next player in the global streaming wars, NBC Universal’s Peacock, is taking flight. Peacock’s launch was scheduled to coincide with this summer’s Olympics, but with these being cancelled, it had to review its strategy. What’s interesting about Peacock is that it is an ad-supported service, which as I’ve mentioned before could eventually be a workable model for Africa. The challenge of course is that Peacock is launching at a moment when brands are cutting their ad budgets due to the crisis, with the US ad market expected to drop 13% this year. To be continued.

Meanwhile, Netflix continues to bring premium African properties to its service, with cult pantsula-themed South African TV series Tjovitjo and Nigerian much-talked-about film The Set Up coming to the platform this month. I remember the time, not so long ago, when there was no way to watch this kind of quality African content anywhere. 


CONTENT DEVELOPMENT

Two shot-in-lockdown series are coming to the world and - really interestingly - they both come from Spanish producers. First, the half hour sitcom Quarantine Diaries, which was recorded in their homes by the actors themselves, is already being released on Radio Television Espanola (RTVE). The second project, En Casa (at Home), is a Spanish anthology series from HBO Europe comprising five 15 minutes episodes of different genres produced by five different directors also from their homes. You’re going to start thinking that I bring everything back to Netflix, but I do see the influence of the streamer here, as it was Netflix that brought Spanish series to the world (with its uber-successful Casa de Papel and Elite), leading to a kind of creative renaissance in Spanish television. I believe it will have the same impact on Nigerian TV series (Nigerian films were already doing very well pre-Netflix).

But actually, the big news in content development this week is that Africa’s very own first lockdown series is here. Self-shot in Kenya, Nigeria, South Africa and Ivory Coast, it is coming to us courtesy of the MTV Staying Alive Foundation. The 60-part MTV Shuga Alone Together mini-series is an extension of the well-known and very successful MTV Shuga brand and aims to raise awareness on COVID-19. Catch it on YouTube from today April 20th.

Meanwhile in Nigeria, director and animator Niyi Akinmolayan (who’s also behind The Set Up) has released another viral COVID-19 video, this time a lovely animation aimed at children which has already gone everywhere including on CNN. I am a huge fan of Niyi’s work and of his commitment to support his industry, and what he’s just done here is simply putting Nigerian animation on the map.

I’ll finish with this fascinating article on “the passion economy” and how new platforms allow anyone, and especially creators, to monetize unique skills. As the world is now trapped at home and glued to their screens, African artists are finding new ways to engage with and grow their audiences online. For some, the boost in numbers has been staggering. Viewers are discovering new talent, getting comfortable with new ways to consume, and hooked on new types of content. The next step will be to monetize, and we can bet that this will be solved soon.

HUSTLE & FLOW #8: 5G vs COVID, conspiracy theories and the power of Whatsapp, the State of Fashion, content creation strategies, and more

Dear colleagues and friends,

First of all, Happy Holidays to those celebrating Easter, Passover, or Ramadan this long weekend or later this month.

Welcome also to all new readers who joined us through HUSTLE & FLOW’s new open subscription link. I hope you will find this newsletter helpful and, dare I say, entertaining, in this time of upheaval. After all, this too shall pass.

Last week was, in fact, pretty entertaining by COVID standards. First, Nollywood star Funke Akindele was arrested for throwing a birthday party for her husband despite the lockdown. They were both fined N100,000 ($260) and sentenced to 14 days of community service during which they will “ educate the public on the consequences of non-compliance with the restriction order." The incident generated intense debate on Nigerian social media and in the end, the whole commotion turned out to be a quite effective #StayHome PSA

Meanwhile in Uganda, fed up with people who continued to work out in groups in Kampala’s public areas against his instructions, forever young 75-year-old president Yoweri Museveni took the matter into his own biceps and released a video of himself doing 30 push-ups in his office. When I wrote in a previous edition that now was the time for African online workout videos, that’s not exactly what I had in mind.

This week in HUSTLE & FLOW, we’ll continue talking about some of the sectors currently experiencing fast-tracked growth, such as mobile money, logistics and VOD, but we’ll also delve a little deeper into the power of Whatsapp and COVID-specific content creation strategies

If you have missed previous editions of HUSTLE & FLOW, you can check out the archives here. And as always, do not hesitate to send me your questions, feedback, and topic requests at marie@restless.global. I’m looking forward to hearing from you.

Happy reading to all,

Marie


GLOBAL RESCUE MEASURES

Last week the World Bank confirmed what most of us were already expecting: Africa will enter its first recession in 25 years in 2020. To help mitigate the impact, the World Bank has called for a pause in debt payments and is unlocking $160 billion in financial support. In addition, the African Development Bank unveiled a $10 billion Response Facility, while the African Union and Africa CDC launched an “Africa COVID-19 Response Fund”, a public-private partnership with the AfroChampions Initiative, which will raise an initial $150 million and up to $400 million in total. Internationally, Agence Francaise de Developpement (AFD) committed 1,2 billion euros to its “COVID-19 Health in Common” initiative, mostly directed at the immediate health emergency in Africa. AFD’s Director Remi Rioux also hinted at other upcoming initiatives targeting the social and economic aspect of the crisis. 

In billionaire news this week, Twitter and Square’s CEO Jack Dorsey committed $1 billion, or just under a third of his total wealth, to relief programs that will be channelled through his newly-formed company Start Small. In 2019, Dorsey had announced plans to move to Africa for up to 6 months in 2020 after a month-long trip during which he met with some of the continent’s top entrepreneurs, so we can assume that Start Small will provide support to African startups in one way or another. Talking about startups, here’s a great centralized document that crowdsources COVID-19 related resources and initiatives for and from the African startup ecosystem. 

Now more specifically concerning the Entertainment sector, South Africa’s Department of Sport, Arts and Culture has finalised the criteria to distribute the R150M ($8,3M) COVID-19 relief fund for artists, athletes, technical personnel and the core ecosystem that supports them. In Kenya, president Uhuru Kenyatta announced that the government had set aside Ksh.100 million ($944,000) for local musicians, artists and actors through the Sports Fund. Kenya counts 19,000 entertainment professionals registered with one of the country’s 3 Collective Management Organizations (CMOs), which might mean that each person could take home approximately Ksh5,200 ($50!). Meanwhile, HEVA Fund is currently compiling the results of its COVID-19 Creative Sector Relief and Recovery survey whose results will be used by partners such as the British Council, Goethe Institute, UNDP and the Kenya Film Commission to map out future support measures.

INTERNET INFRASTRUCTURE

Despite having more than $350 million at hand to finance its various expansion plans for Africa, telecoms tower infrastructure company Helios Towers announced last week that it was postponing (but not cancelling) its investments due to the on-going crisis. Helios Towers currently has operations in South Africa, Tanzania, Ghana, Congo Brazzaville and DRC, and has expressed interest in the just-opened Ethiopian market, but also Tanzania and Morocco. 

MOBILE

The big news in mobile money this week was the acquisition of M-Pesa by South Africa's Vodacom and its Kenyan subsidiary Safaricom from London-based Vodafone. Yes, the names are confusing and all these companies are linked to each other, but the aim of the transaction was to give the local operators full control of the M-Pesa brand, product development and support services to boost expansion into new African markets. M-Pesa is currently Africa's largest payments platform with some 40-million users in Kenya, Tanzania, Lesotho, DRC, Ghana, Mozambique and Egypt. 

It certainly feels like the right time to go all-in. According to statistics from a new report from the GSMA trade body, 50 million sub-Saharan Africans created a mobile-money account in 2019, bringing the total number of users up to 469 million. Boosted by coronavirus’ self-distancing measures, this number is likely to top 500 million in 2020. One country where we might see a strong rise in mobile money adoption is Nigeria, which suffered from an initial tepid support from the Nigerian government. The Central Bank of Nigeria is now planning to roll out a new payment licence system in order to streamline the regime for fintechs in Nigeria.

Still in Naija, the Nigerian Communications Commission has confirmed that the country has successfully completed its 5G trials. It also addressed the widely circulating conspiracies suggesting a link between 5G and coronavirus and clarified that 5G had not yet been deployed in the country. Nigeria is far from the only country where these theories have spread. What is particularly concerning is the speed and ease at which misinformation travels across Africa through the ubiquity of Whatsapp. But Whatsapp reacted quickly by limiting the ability to forward messages that have been sent through a chain of more than five people to only one more contact. Under South Africa’s coronavirus disaster regulations, Whatsapp group admins knowingly spreading false information may also now be held criminally liable.

Now, as someone always looking for the silver lining, what I see here is a proof of the power of Whatsapp when it comes to content distribution in the African context. Several weeks ago, WHO tapped into it when it launched a dedicated messaging “COVID-19 hotline” service in collaboration with South Africa’s Praekelt.org. Back in 2014, after discovering that pirated clips of our new Nigerian show Ogas At The Top were being circulated on Whatsapp, my team and I experimented with it as a distribution platform. We collected hundreds of phone numbers from people wanting to receive the videos directly to their phones, but Whatsapp Business didn’t exist yet (again, too early) and, faced with the platform’s anti-spam measures, we had to give up. The other issue was that there was no way to track where your content went after it was released into the wild, and of course no way to monetize. Facebook, if you’re listening, enabling the use of Whatsapp as a content distribution and monetization channel would be a major boost to the African creative industry.

LOGISTICS

The African logistics sector is facing intense pressure, according to Kobo360 which estimates that the industry in emerging markets has lost $7.5 billion since February because of the drop in imports from China and other countries. Confusion over which businesses qualified as “essential services” also led the Lagos State Environmental Protection Agency to seal off Jumia’s main warehouse on April 1st, but the matter was sorted out quickly and the warehouse reopened that same day. 

And there are of course concerns over the global food supply chain. But in the same week, Lagos-based deliveries startup kwik secured an undisclosed amount in new funding from the founder of French video games company Ubisoft to scale its operations in Nigeria. All these services are indeed demonstrating that they are indispensable, and I agree with Kobo360 Chief Strategy Officer Kagure Wamunyu when she says that “the pandemic will push the sector to its limits, however we  believe that in the end, we will succeed”.

For some interesting points of view on the future of Jumia now that Rocket Internet is out, this webinar on countercyclical investment opportunities in Africa is worth watching. Speakers Aubrey Hruby of Insider, Rob Eloff of Lateral Capital, and Iyin Aboyeji of Future Africa also discussed trends in tech, industrialization, housing, and human capital.

FASHION

I’m not going to lie, this is not a great time for the fashion industry. Mckinsey and the Business of Fashion just released a special coronavirus update to their State of Fashion 2020 report, which shows that revenues for the global fashion industry will contract by –27 to –30% in 2020 year-on-year. The COVID-19 crisis will fasten or enhance consumer shifts that were already visible previously, such as anti-consumerism, digital transformation, seasonless design, and the decline of wholesale. But it will also be an opportunity to reset and reshape the entire value chain towards more environmental sustainability and to foster collaboration within the industry.

One big unknown is how Africa’s resilience will interact with some of these global trends, but also with local ones such as the growth of e-commerce and a (hopefully) new focus on industrialization. After all, African fashion is built on the deep-rooted, sustainable tradition of made-to-measure tailoring for a hyper-local customer base which passes for the future now in developed markets, and is yet to be integrated into the international marketplace, meaning that it will barely suffer from the drop in sales in Europe or the US. For those who want to go further on this, the on-going (online) Woven Threads program by Lagos Fashion Week is currently exploring some of these themes. So here also, I remain hopeful. One positive example of Africa’s resilience as applied to the textile industry is this story about how a gardening clothes factory in Kenya transformed almost overnight to produce 30,000 surgical masks a day.

SPORTS

In 2019 BC (Before COVID), Deloitte had forecast a “golden” outlook for the sports industry this year. Now, it has come to a standstill. Sports will come back eventually, but the question is what will change in the meantime. With live sports on hold, sports TV viewing hours (which usually represent 30% of viewing time) plummeted by 91% globally last month, according to Conviva. But the company also believes that “sports will bounce back with a vengeance” as the pivot to e-sports has demonstrated that demand remains. Indeed, sports organizations have continued to transition as much of their activity online as possible to keep fans engaged, such as America’s most popular motorsport with its eNASCAR iRacing Pro Invitational, and the NBA with its NBA at Home and NBA Together Live initiatives, which saw for example Nigerian-American player Chiney Ogwumike take part in a three-point challenge and Mo Bamba, whose parents are from Ivory Coast, perform a ball handling circuit which fans can practice at home. Former players Luol Deng and Pops Mensah-Bonsu have also been holding live conversations on Instagram. Looking further out, virtual Reality might be in the future, as well as a boom of sports betting, as we discussed last week. And while everyone in Africa (including Don Jazzy) is now dancing on TikTok, I am still waiting for these workout videos.

BROADCAST

South Africa’s national lockdown has given rise to some record TV ratings, with MultiChoice reporting a 100% increase in its daytime audiences, and the same is probably happening across the continent. One long-term impact of the shutdown will be that millions of viewers will have been exposed to new content and formed new TV habits. Broadcasters (and platforms) are also currently buying finished programs to fill their gap in fresh programming, so if you’re sitting on films or TV series that you haven’t yet sold exclusively to Netflix or MultiChoice, you should be trying to make some sales right now.

More specifically, educational TV programs or channels aimed at children currently out of school are booming across the continent: South Africa’s public broadcaster SABC and the Department of Basic Education have rolled out a multi-media (TV, radio and online) learner support initiative titled “COVID-19 Learner Support”; the Ghana Education Service has announced the launch of Ghana Learning TV, a 24-hour free-to-air channel for high school students; whereas in Kenya Akili Network premiered Akili Kids!, the country’s first children Free-to-Air channel (in the works pre-COVID). Being far away right now, I am not able to watch any of these programs and I’m really curious as to whether they are locally produced or all foreign. Please email me to let me know. In any case I am hoping that this period will contribute to a change of perception among local and regional broadcasters as to the value of African children shows, which has long been the poor parent of TV content. Also, I don’t see why these special channels shouldn’t stay on the air even after schools reopen (with maybe some time slots dedicated to adult education).

VOD

In global VOD news, Quibi launched last week, and reported an unimpressive 300,000 downloads on its first day in the US. TechCrunch has some strong words for the fledgling service: “It takes either audacious self-confidence or reckless hubris to build a completely asocial video app in 2020 (...) Quibi manages to miss every trend and tactic that could help make its app popular.” The entire article, entitled “Quibi is the anti-TikTok (it’s a bad thing)” is a must read. I’ve talked in previous editions of HUSTLE & FLOW about how well suited to the African market TikTok was, and how Quibi is not (it doesn’t seem suited to any market, really).

Meanwhile, ad-supported VoD service Pluto TV, owned by ViacomCBS, has launched in 17 Latin American countries with 24 channels, and is aiming to expand to 70 channels in the next 12 months. I’ve been following the growth of Pluto closely because I think that model might work well in Africa (the main issue being the depth of the local online ad inventory). Its performance in Latin America, the world’s second-fastest growing mobile market after Africa, will produce some relevant insights, which I will of course bring to you.

CONTENT CREATION

I’ve talked at length in the past few editions of this newsletter about the global increase in demand for content. The question is: how can African creators take advantage of this trend? 

First, performers have been having some good success with live digital events as those become more accepted. Nigerian comedian AY hosted an online version of his AY Live this Easter Sunday on various platforms. The event gathered a staggering 84,646 viewers on Instagram alone. Online sets by DJs like Kenya’s Blinky Bill have proved popular, despite major issues with Instagram flagging their content (again, Facebook, if you’re listening…).

For other creators, if you’ve already sold everything in your catalog, the first thing to do is find a way to produce new content despite the lockdown. You can edit or repurpose unfinished projects, you can write, you can record podcasts (where are the African scripted podcasts?). If you are an animator, you can and should absolutely continue to do your thing as animation is one of the sectors that stand to eventually gain from this crisis. One strategy is to take advantage of the various grants and competitions currently open for the production of COVID-related content, such as the CcHub/African CDC initiative which I had already linked to, the Docubox Short Film competition, or the UN’s Global Call Out to Creatives (deadline tomorrow!). The BBC’s script competition is now closed.

But, you can also produce more ambitious video content remotely. In California, CBS courtroom drama All Rise has returned to production by tapping into FaceTime, WebEx, Zoom and additional online technology to film a new episode in which Judge Lola Carmichael virtually presides over a bench trial. Characters will be shown managing their “new normal” in the actors’ real homes, with VFX being used to create the necessary backgrounds, while a cinematographer operating solo from a vehicle will capture exterior footage of the empty Los Angeles streets. How cool is that?


So I’m thinking of you, Nigerian filmmakers, as this is right up your alley. If kids in Kaduna with a smartphone and a green screen can create content that goes viral and gets them in front of top Hollywood producers (I hear a deal is in the works), then you can certainly come up with a cool concept that can be shot remotely by various people in their homes. I’ll do my part and give you feedback on your concept or script, and if it’s really good, I might even help produce it.