AIG startups in Nigeria get zero data app deal

This week, online marketplace Kaymu becomes the latest member of the Africa Internet Group (AIG) network of companies to get zero data apps on the MTN network and this follows previous announcement of similar services for ecommerce giant Jumia and hotel booking platform Jovago.

This is how it works. MTN is offering these startups zero-rate data usage and this means that current and prospective users of the services offered by these companies, on the MTN network, can do so for free on the network without incurring any data costs.

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

The service which is available for users of Android, Blackberry, and iOS smartphones, is expected to help targeted users to overcome barrier created by the high data costs.

“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,” said Kaymu MD Sefik Bagdadioglu.

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

“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,” he said.

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

Paul Midy, CEO of Jovago, also described the zero data app as a great feat for ecommerce in Nigeria while revealing that more than 50% of the booking on Jovago are done through mobile devices.

“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,” he said.

It would be recalled that in December 2013, Africa’s tech space got aware of MTN’s $225 million investment in Rocket Internet’s Africa Internet Holdings, getting 33.3% stake in return. Part of the mandate for MTN as described by Millicom President and CEO, Hans-Holger Albrecht, is to develop and accelerate the growth of AIH.

The network in a statement also said its investment in AIH 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 Sifiso Dabengwa, MTN Group President and CEO.

The launch of the zero data apps for AIG companies is largely seen as one of the numerous ways that MTN plan to use to accelerate the growth of the companies within the AIG network.