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MTN Nigeria's ecommerce offer to subscribers

Nigeria , 19 Oct 2015

MTN Nigeria's ecommerce offer to subscribers

Nigeria's largest telecoms network MTN is offering its subscribers free access to select tech startups within the Africa Internet Group (AIG) network, including ecommerce giant Jumia, online marketplace Kaymu and hotel booking platform Jovago.

MTN subscribers who engage with these startups and utilise their app services can do so without being charged for data.

The zero data access charge offer is the latest attempt by MTN to develop and accelerate the growth of AIG startups. The mobile network acquired a 33.3% stake in AIG in 2013 following its estimated $225 million investment in Rocket Internet's Africa Internet Holdings.

In a statement Sifiso Dabengwa, MTN Group President and CEO said the company's investment in AIG is in line with strategy to bring digital services to customers, and that it will continue to pursue digital business adjacencies as one of its "key strategic priorities" to drive growth and value.

"We are excited to engage in a strategic partnership with Rocket Internet and Millicom to develop online ventures across the fast growing internet markets of Africa," said Dabengwa.

The zero data access charge service goes live for Kaymu Nigeria following the successful launch of similar services for Jumia and Jovago.

The network and the AIG companies believe the partnership will not only accelerate Internet penetration in Nigeria, but would also give customers and sellers the opportunity to access their products and services via the apps.

Kaymu MD Sefik Bagdadioglu said, "The high data costs are a major barrier for entry for consumers into the e-commerce space. We believe that this proposition will enable hard-pressed consumers to shop and engage in our marketplace without having to worry about the cost of data."

Nicolas Martin, CEO Jumia Nigeria noted that the greatest barrier to extending internet mobile access in Africa is the cost of data.

He said, "In Lagos, one gigabyte of data on mobile networks—the only means of accessing the internet for most—is about $12. With this in mind, Jumia has been rolling out initiatives to bring down the cost of connectivity to provide people with full access to online shopping through jumia.com without data charges.

"We are proud of this new partnership with MTN that will lead to an increasing value for our customers. We believe that a better internet access, and even more mobile, will foster economic development for both small businesses and Africa as a whole."

Paul Midy, CEO of Jovago said, "This is a great milestone for us in order to offer great accessibility for the customer-centric mobile experience. We have noticed the immense growth of mobile internet penetration in Africa and remain focused on reaching clients across the world in order to offer them our services. Now, all MTN users can have access to more than 8 000 hotels in Nigeria and 25 000 hotels in Africa without cost and book in one click."

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