… says public-private partnerships vital for tech expansion
By Bernard Yaw ASHIADEY & Ebenezer Chike Adjei NJOKU
Africa’s private sector technology growth is being held back by regulatory constraints, according to CWG Plc Group Chief Executive Officer Adewale Adeyipo – who called for closer collaboration between government and industry to unlock the sector’s potential.
Speaking at the Texcellence 3.0 Conference organised by CWG Plc in Lagos-Nigeria, Mr. Adeyipo emphasised that private sector innovation is fundamentally limited by the regulatory environment; stating that companies are “only as fast in the private sector as what regulation allows us to be able to fulfil”.
The tech veteran highlighted the need for “deliberate integration within the public and the private sector that embrace creativity and allow such to thrive,” while arguing that current regulatory frameworks may be inhibiting rather than enabling innovation.
Addressing industry stakeholders at the conference themed ‘Revealing Tomorrow’, Mr. Adeyipo emphasised that public-private partnership must be on the top-three agendas in industry conversations.
“This partnership is particularly crucial as the technology sector expands beyond its current focus areas. Just the same way we have done in payments and banking today, as we imagine opening up the pipe and expanding our pipe through other verticals, supply chain, e-commerce, healthcare,” he said, outlining potential growth areas that require regulatory support.
The CWG top executive positioned policy and regulation as potential catalysts for development, describing them as “among drivers of the economy in this nation”. However, he stressed that these same policies could become barriers if not properly aligned with industry needs.
Looking at successful global examples, Adeyipo cited initiatives like the Smart Nation Singapore initiative where government is also leveraging the use of technology as an enabler to improve the lives of its people.
Such examples, he said, demonstrate the potential benefits of aligned public-private cooperation in the technology sector. He also stressed the importance of creating appropriate “safety nets” for creativity to thrive, as he called for a balanced approach to regulation that protects while enabling innovation.
‘Mammoth Task’ in digital transformation race
On his part, MTN Nigeria CEO Karl Toriola argued that traditional telecommunications companies are grappling with a fundamental transformation challenge as they attempt to evolve into technology companies, with even industry leaders finding the transition particularly demanding.
The shift comes as voice revenues, historically the backbone of telecom operations, have plummeted from approximately 90 percent to less than 50 percent of total revenue, while data services, despite their growing volume, struggle to deliver comparable profitability.
Karl Toriola, MTN Nigeria CEO
“The reality is that we are selling data, effectively, almost at a loss,” said Mr. Toriola, adding that the situation is further complicated by what he described as a “massive challenge” wherein most of the value created through data networks is captured by platform operators who utilise user data for marketing purposes.
The transformation from telecommunications providers to technology companies presents unique organisational challenges.
“We are addicted to our current revenue streams,” Mr. Toriola admitted. He pointed out that the organisation is “actually designed to protect the revenue streams that we have,” making the transition particularly challenging.
The pressure for change is driven by evolving customer demands for digital services, including mobile banking, e-commerce, gaming and streaming services. Traditional telcos must adapt or risk obsolescence as margins continue to shrink and competition intensifies from non-traditional sources.
5G technology, he stated, has emerged as a potential game-changer in this transformation. “The cost for delivering data on 5G is cheaper than the cost of delivery for data [on previous generations],” Mr. Toriola explained.
The technology’s low latency and high speeds are expected to enable new business models, particularly in healthcare, the Internet of Things (IoT) and artificial intelligence applications. Infrastructure development remains crucial to this evolution.
This comes as mobile connectivity is catalysing digital transformation and socioeconomic growth in sub-Saharan Africa, with 3G still leading as the dominant technology – though 4G adoption is swiftly rising and expected to more than double to 45 percent over the next five years due to younger consumers’ demand for faster speeds, according to the GSM Association.
5G is gaining momentum, initially targetting urban and industrial areas, and is projected to contribute US$11billion to the regional economy by 2030; representing over six percent of mobile’s total economic impact.
Key trends shaping the mobile ecosystem include advancements in artificial intelligence, greater smartphone accessibility, the shift toward circular economy practices to address climate concerns and a burgeoning fintech sector that fosters collaboration and innovation across the region.
The transformation strategy adopted by many operators includes developing in-house engineering capabilities, digitalising customer experience and fostering partnerships with technology innovators and startups.
However, success requires fundamental changes to corporate DNA, a process Mr. Toriola acknowledges is far from complete: “Let me be clear, we have not yet fully innovated in the telecoms industry. We have a long way to go.”
The telecommunications sector’s economic impact remains significant, with industry contribution to GDP doubling in many markets over the past decade. However, the success of individual operators will increasingly depend on their ability to transcend traditional telecommunications services and establish themselves as comprehensive technology providers.
For established telecom operators, the path forward requires balancing existing revenue streams while investing in future capabilities – a delicate act that will determine their relevance in an increasingly digital world, Mr. Toriola added.
The Texcellence conference, now in its third year, brought together stakeholders from across Africa’s technology and digital innovation value chain to address these challenges by discussing ‘the why, the how, the gaps, the people, the process’. It witnessed a keynote address by globally-acclaimed speaker and author Fredrik Haren, who opened up the intricate link between creativity, innovation and technological evolution.
Dr. Kenneth Ashigbey, CEO-Ghana Chamber of Telecoms, participated in the Government Parastatals Conversation panel on the topic ‘Collaborative Innovation: Shaping Africa’s Tomorrow Economy’.
He was joined by notable industry leaders including Kashifu Inuwa Abdullahi, Director General of Nigeria’s National Information Technology Development Agency (NITDA); Dr. Chinyere Almona, Director-General and CEO, Lagos Chamber of Commerce and Industry; Jude Chiemeka, CEO-Nigerian Exchange Group (NGX); and Dr. Barr. Obiageli Amadiobi, Director General-National Office for Technology Acquisition and Promotion (NOTAP). The session was moderated by Idy Enang, CEO-Corporate Shepherds and President-National Institute of Marketing, Nigeria (NIMN).
Also, David Gowu, CEO-Inngen Ghana and President-Institute of ICT Professionals Ghana (IIPGH), delivered a presentation on ‘Empowering the Workforce of Tomorrow: Digital Skills for a Transformative Future’. Following his presentation, Mr. Gowu joined a Technology and Leadership Conversation panel to discuss ‘Disruption to Evolution: The Next Chapter in Banking’.
This panel included heavyweights such as Adewale Salami, Chief Innovation Officer-FirstBank; Dr. Wale Obadare, CEO-Digital Encode; and Oluwafiropo Tobi Ogundare, Regional Sales Lead-West Africa and Mauritius, Redhat, with Dr. Franklin Agwu as the moderator.
The discussions highlighted Africa’s strides in digital innovation and its impact on the continent’s economic future.
The post CWG GCEO calls for regulatory reforms to unlock Africa’s tech potential appeared first on The Business & Financial Times.
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