Nigeria's telecom sector has breathed a sigh of relief as it appears to have dodged the impact of the 14% US export tariff. According to Tony Emoekpere, the industry's reliance on imports means it won't be directly affected by the tariff. However, telecom leaders are cautious about the potential ripple effects on the economy, which could lead to inflation and higher prices for imported gadgets.
The Nigerian government has stepped into negotiation mode to mitigate the effects of the tariff, but operators are already feeling the pinch. They recently hiked service tariffs by 50% to maintain profitability, citing the need to improve service quality. However, consumers are skeptical about the move, especially given the persistent issues with network connectivity.
Industry experts warn that the tariff could still have an indirect impact on the sector. For instance, if Nigeria's non-oil export revenue drops, it could affect foreign exchange reserves, leading to higher prices for imported equipment and services. Additionally, international call rates could increase if the US starts taxing calls, further straining the industry.
In related news, the Central Bank of Kenya has cut its benchmark interest rate to 10% in a bid to stimulate economic growth and encourage private sector lending. The move is expected to increase borrowing and extend more credit to the private sector, but it also presents a challenge for lenders who must navigate the surge in bad loans.
Meanwhile, the future of payments in Nigeria is being shaped by the potential of regulated blockchain technology. Obi Emetarom, CEO of Zone, believes that regulated blockchain can improve the speed, safety, and oversight of payment systems, making it an attractive option for the government. However, the lack of proven success models and real-world evidence may make it harder for regulators to adopt the technology.
In other news, the World Wide Web3 tracker shows that Bitcoin, Ether, XRP, and Solana have all seen significant gains in the past 24 hours, with Bitcoin reaching a current value of $82,107. The crypto market is closely watching the developments in the global trade war and its potential impact on the industry.
Finally, several opportunities are available for startups in Africa, including workspace vouchers from Lagos Innovates, the Lisk Blockchain Incubation Hub, and Village Capital's Greentech Africa 2025 accelerator. These initiatives aim to support early-stage startups and entrepreneurs in the region, providing them with the resources and mentorship needed to grow and succeed.