Safaricom scores a hat trick

MultiChoice, South Africa’s pay-TV giant, now builds mobile games. 

Yesterday, the company launched its first game, Shaka iLembe: Match Challenge, based on a South African series of the same name. This surprising venture has come at a time when MultiChoice is struggling to sustain user attention, or even justify the price of its pay-TV services amid inflationary markets where it operates.

By March 2025, MultiChoice’s revenue declined as subscribers, with squeezed wallets, began to prioritise other necessary expenses.

Why does it matter? MultiChoice’s gaming venture is following a bigger trend: streaming companies using their original stories to build new digital worlds and keep audiences hooked for the long term. Netflix, for example, now publishes more games than the maker of Candy Crush, King. MultiChoice could follow a similar playbook: it owns cherished African stories, has a considerable reach through DStv, GOtv, and Showmax, and can test whether mobile games can keep subscribers loyal to its broader offerings. It is starting small with Shaka iLembe, but it is looking to launch several new mobile games to boost opportunities for world-building and cross-platform engagement. 

State of play: Shaka iLembe: The Match Challenge is now live on the MyDStv app in South Africa, with additional games planned. The timing shows how MultiChoice is pushing for fresher ways to retain users amid the increasingly tougher operating terrain in streaming. In Ghana, regulators have just ordered MultiChoice to slash DStv prices by 30% to reflect the cedi’s rise. Meanwhile, MultiChoice Kenya will raise DStv prices from August 1, but lower Showmax fees to attract streaming-first viewers. 

The big picture: MultiChoice is transforming original TV hits into playable worlds and investing in games to help it compete, build customer loyalty, and stay relevant in the long run. 

In a major change to its executive lineup, Safaricom, Kenya's largest telecom company, has tapped Frankline Okata as its new Chief Enterprise Business Officer. This announcement came barely days after Cynthia Karuri-Kropac, the company's former executive, left the role.

Catch up: Formerly, data and voice revenue used to be important revenue drivers for African telecom companies. Data has remained steady, while voice has declined. As a result, the demand for internet connectivity has led telecom companies, seeking to expand their revenue baskets, to strengthen infrastructure for data and data services.

Safaricom has run an enterprise services arm for over two decades. But it doubled down in 2022, ramping up cloud, internet of things (IoT), and data storage services for corporate clients. By the end of 2024’s financial year, the company's fixed service and wholesale transit business (which includes enterprise connectivity and cloud) had grown by 12% year-on-year to KES 15.11 billion ($117 million). Enterprise revenue alone reached $8.63 billion ($67 million).

MTN Nigeria, another telecom company, recently finalised the first phase of its local data centre as a clear play to provide enterprise solutions. The bet seems to be that B2B sales will bring in steady volume and bigger revenue, while consumer-facing products will augment the bottom-line.

State of play: This is the third time in 2 years Safaricom has filled the same role, indicating the importance of its enterprise business arm. As a high-revenue potential business, the investment will be just as high; if it's going to be spending money, Safaricom wants clear returns.

Yet, the leadership churn at the top of this unit is a flashing red light. Three chiefs in two years is a sign of just how high the stakes are, and how tough the job is. With Okata’s hire, Safaricom is adopting Nike's playbook and going for a servant hire. Will local know-how bring that stability it badly lacks?

Just as we predicted in May, Egypt’s Central Bank has held interest rates as the economy showed signs of relative stability through May and June.

Catch up: In May, inflation quickened to 16.8%, significantly worsening a three-month streak of gradual acceleration since February. That spike raised concerns about the country's economy. However, inflation slowed again in June to 14.9%, easing those concerns for now. The back-and-forth has prompted the Central Bank to pause and assess whether inflation is truly on a downward path.

What are the numbers? Egypt maintained its key rate at 24%. The country's overnight lending rate for financial service providers and main operations steadied at 25% and 24.5%. The discount rate stayed at 24.5%.

State of play: The decision to hold rates also reflects modest gains elsewhere. The Egyptian pound has remained stable following March’s devaluation. Foreign reserves rose slightly in June, helped by inflows from tourism and Suez Canal revenues. These shifts indicate that the pressure on Egypt’s external balance may be easing.

Food prices, which had been the main driver of inflation for much of the past year, have started to level off. In June, Egypt's food inflation, which tracks how fast food prices are rising, declined to 6.9%. Core inflation has also steadied. Combined, these movements reduce the urgency for another rate hike.

Zoom out: Despite signs of its economy back on a front pedal, Egypt's Central Bank will remain cautious. Risks such as rising oil prices, disruptions in trade routes, or supply shocks could reignite inflation. But for now, the data supports a wait-and-see approach.

Holding rates allows the Central Bank to give the economy space to absorb earlier policy changes while keeping inflation expectations in check. Egypt's next Monetary Policy Committee (MPC) decision will take place on August 28. If inflation continues on a downward trend, the Centr al Bank will likely cut rates to relax the economy.

This week, Cerebrium, a South African-born AI-based startup, secured an $8.5 million seed round led by Gradient Ventures, Google’s AI-focused VC fund. Y Combinator, Authentic Ventures, and several strategic angels also joined the round. (July 9)

Here’s the other deal for the week:

• BuuPass, a Kenyan mobility startup, has secured an undisclosed amount of funding from Yango Ventures, the corporate venture arm of global ride-hailing firm Yango Group. (July 7)

Follow us on Twitter, Instagram, and LinkedIn for more funding announcements. Before you go, what are the three tiers that define Africa's AI readiness on the global stage? Read here.