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Mavin’s investment talks, streaming habits, Kenya’s beloved corn snack. ͏‌  ͏‌  ͏‌  ͏‌  ͏‌  ͏‌ 
 
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November 12, 2023
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Africa

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Alexis Akwagyiram
Alexis Akwagyiram

Hi! Welcome to Semafor Africa Weekend, where we’re obsessed with the business of leisure. Multimillion dollar business empires are built on the choices we make in our free time — what we watch, listen to, and read. Sport brings joy, often turning otherwise rational people into passionate fans. That’s why we’re watching with interest as basketball continues its push into the continent.

The English Premier League has shown that team sports played at the highest level can captivate African fans. I’ve watched countless EPL games in bars dotted across the continent and never cease to be amazed by the capacity of people to experience a huge range of emotions, from elation to anger, because of elite athletes chasing a ball thousands of miles away. I even surprise myself with my screaming at a screen.

The key point is that football games in the EPL and Champions League are all played in Europe. That’s one of the reasons why the NBA’s growth strategy in Africa is particularly striking — it actually involves bringing live action to fans on the continent. As NBA Africa CEO Victor Williams tells us, the aim is to make basketball on the continent “as compelling and locally relevant as possible.” For that reason, and many others, the interview with Williams in this edition is fascinating. It’s a guide to the building blocks being laid to grow a love of the sport in a huge market.

🟡 The business of leisure is the common thread that runs through this weekend’s edition, from that interview with Williams to the pan-continental ambitions of a Nigerian music label, and crunching the numbers to see where streaming giant Netflix is having the most success.

Martin K.N Siele

Leading basketball’s push across Africa

NBA Africa

THE FACTS

Victor Williams is the CEO of NBA Africa. In May 2021, he oversaw the launch of NBA Africa as a standalone entity that conducts the league’s business in Africa, including the Basketball Africa League (BAL). The BAL features 12 club teams from across Africa and completed its third season in May. A dual citizen of Sierra Leone and the U.S., he was named among the 100 Most Influential Africans of 2021 by New African Magazine.

KNOW MORE

💡What is NBA Africa’s primary role in the sports ecosystem?

Our efforts on the continent have focused on increasing access to basketball and the NBA through youth and elite development, social responsibility, NBA Africa games, and more. In addition to our headquarters in Johannesburg, in the past few years we’ve opened subsidiary offices in Cairo, Dakar, and Lagos to deepen our engagement with fans in those markets. This continued expansion reflects the enormous opportunities ahead for the league in Africa and our belief that basketball can become one of the top sports on the continent in the next decade. We see our role as helping develop not just the basketball ecosystem but the broader African sports industry, which in turn will contribute to social and economic development across the continent.

💡How do you measure success with the BAL so far?

First, to launch a pan-African league in the middle of a global pandemic required enormous logistical coordination and the collective resources and expertise of the NBA and FIBA. We were able to do that and crown the first BAL champion in Egypt’s Zamalek, which was a tremendous success. Following the inaugural season in 2021, we expanded to the caravan format which has allowed more fans to experience the excitement of this world-class league. And we’re encouraged by the increased interest we’re seeing from fans across the continent, including a 51% increase in attendance last season. We’re excited that in 2024, the BAL will continue to expand by playing more games in more countries, including the first BAL games in South Africa.

💡What’s the bigger priority: getting more young Africans to play the game or getting better media rights deals for the league?

In our minds both are linked. Getting more young Africans to play the game helps to grow the number of Africans who love the game, understand it, and who are more likely to become fans. It also lays the foundation for the eventual emergence of African stars, heroes, and amazing stories that will also drive fandom. It will become easier to get good media deals when all those fans are watching NBA and BAL games and getting their friends and families interested in the game as well.

💡How can African sports leagues in general secure more lucrative broadcasting/media rights deals?

It starts with developing the right product. No matter what sport or entertainment property you’re talking about, fans are sophisticated and have so many options competing for their attention. We have to differentiate our product and make it as compelling and locally relevant as possible, which is what we’ve done with the BAL. The more we can incentivize local governments, partners and stakeholders to invest in the development of the game in their respective countries, the more competitive the BAL will be and the more valuable our content will be to fans across the continent.

Read on for more of this interview.

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Intel
Roberto Finizio/Getty Images

Mavin Global, the Nigerian music label behind one of the biggest worldwide hit songs of the last two years, has held talks with strategic and financial partners in recent weeks which have valued the company as high as $150 million, according to a person with knowledge of the discussions. It confirmed an earlier report by Billboard.

The label, founded by veteran Nigerian hitmaker/producer Don Jazzy in 2012, launched the career of Afrobeats star Rema, whose song “Calm Down” has been streamed over 10 billion times on various platforms, including a remix with U.S. star Selena Gomez. Other Mavin artists include Ayra Starr who has had hundreds of millions of streams and is among the Grammy nominees for Best African Music Performance. The new category, introduced this year, is another sign of the worldwide popularity and influence of music from the continent.

The potential strategic partners have included the world’s biggest music company Universal Music Group and HYBE, the Korean entertainment group behind K-Pop act BTS. There has been a wide range of valuations for the Lagos-based label as potential partners try to gauge whether Afrobeats is a passing pop trend or set to diversify into other African subgenres. The majority of Mavin’s revenue comes from streaming but it also has a partnership model with its artists, such as supporting an upcoming Rema collaboration with Nike’s Jordan brand.

Any new investment would be focused on ramping up a pan-African approach to discover more talent across the continent and take them global, as it has done successfully in Africa’s most populous nation. “This isn’t about a sale of Mavin or simply trying to make a quick profit,” said the person who has been close to the talks. “Don Jazzy wants to build the next generation of global African stars, he sees himself as a steward of the business.”

Guido De Bortoli/Getty Images

Mavin, which had a string of Nigerian hits with Tiwa Savage and other artists in the mid-2010s, has taken a more global and streaming-first approach since a 2019 multimillion-dollar investment by Kupanda Capital, a Washington D.C.-based investor.

Mavin has also focused on building out its infrastructure with dozens of staffers across various departments including legal, finance, and data analysis. Kupanda typically takes a longer term investment approach in African companies than Kupanda Holdings, a joint venture with private equity firm TPG Growth’s Rise Fund which is backed by investors including U2’s Bono.

Yinka Adegoke

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Evidence

South Africa accounts for the vast majority of Netflix subscriptions in Africa, thanks to being the continent’s most developed economy and an online video market that is more mature than other countries. That’s according to London-based technology research firm Omdia which estimates that the 1.6 million subscriptions Netflix had at the end of 2022 will grow 5.5% annually to reach 2.2 million by 2028. Since launching in Africa in 2016, Netflix’s strategy has involved licensing already released blockbusters like The Wedding Party in Nigeria but also producing original content, such as Queen Sono in South Africa. Both content categories, along with admin and training costs, have seen Netflix spend $175 million in Africa, according to Omdia’s research. Some $135 million has been recouped in subscription revenue. The global success of originals like Nigerian thriller The Black Book suggests Netflix is doubling down on its strategy even as competition intensifies from Showmax, the South African streamer backed by Comcast and Sky, and from Amazon’s Prime Video.

Alexander Onukwue

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Street Foods
Martin K.N. Siele/Semafor

The sight of vendors standing over a corn-covered charcoal grill is a common sight in towns and cities across Kenya. Mahindi choma — roasted corn — is one of the country’s most popular snacks.

Only mature corn is used for the dish, as it is ideal for roasting over hot embers. Preparing the dish is pretty straightforward, but care must be taken to avoid ruining the treat by burning the corn. Some people prefer their mahindi choma crunchy, while others like it soft. The piping hot corn is served wrapped in husks, making it easier to hold, and often garnished with a mixture of chili, lime, and salt.

The simplicity of mahindi choma — which ensures it’s both cheap to produce and buy — means it can be found in practically all parts of the country. A cob of corn, which is cheaper than most other snacks, typically costs between 20 and 50 Kenyan shillings (13 to 33 U.S. cents). The low price point also gives it a deeper cultural significance as a dish that’s accessible to all Kenyans, a status that’s particularly noticeable during election campaigns because it’s the preferred snack for politicians trying to present an everyman image in public appearances.

Hungry patrons and politicians aren’t the only people who are fans of mahindi choma. The minimal list of ingredients and equipment needed to set up a stall make it a popular choice for budding entrepreneurs keen to make money from catering. “Many people enjoy it on their way home from work,” said Gladys Osoro, a mahindi choma vendor in Syokimau, a neighborhood on the outskirts of Nairobi, who has been selling the snack for just over two years. “It’s a good business.”

Martin K.N. Siele in Nairobi, Kenya

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Weekend Reads
Reuters/Tiksa Negeri

🇪🇹 Ethiopia and Eritrea could be on the path to war again after Prime Minister Abiy Ahmed’s speech to Parliament last month highlighted the Red Sea’s importance for Ethiopia’s future, writes Mohamed Kheir Omer in Foreign Policy. The countries, which fought a bloody war two decades ago, became allies to fight Tigrayan forces during Ethiopia’s civil war. But their relationship is deteriorating. Charting the shaky relationship between the two countries, he writes: “The current trajectory suggests a probable collision course that could have devastating regional implications.” Careful diplomacy by the African Union and the international community is crucial to prevent a catastrophic outcome, Omer notes.

🌍 Africa’s plastic problem looks set to worsen if immediate action is not taken to ensure proper management of the waste. If the trend of rising plastic consumption in sub-Saharan Africa continues unabated, the region is projected to end up with 116 million tons of plastic waste annually by 2060, Karen McVeigh writes in the Guardian. “In the absence of global rules and regulations, people living in developing countries and the waste pickers who collect the waste disproportionately bear the brunt of the environmental and health impacts of plastic pollution,” argues McVeigh.

🇰🇪 Kenya is the latest country to have signed a deal with Dubai-based firm Blue Carbon. The agreement could see the East African country concede “millions of hectares” of its territory for the production of carbon credits, according to Katherine Hearst, writing in the Middle East Eye. The deal follows others agreed with Liberia, Tanzania, Zambia, and Zimbabwe. Hearst argues that the parameters of the deal with Kenya remain unclear and there is a significant risk that the project will displace communities who live and work on the land. Blue Carbon said the agreement would “generate vital climate financing” which would advance climate-change adaptation efforts.

🇺🇬 The culture of tax compliance in modern day Uganda has its roots in the pre-colonial era during which centralized political systems in the south and west of the country ensured respect for authority and social cohesion, argue Merima Ali and Odd-Helge Fjeldstad. The academics, in a blog published by the London School of Economics, contrast that approach with the east and north of Uganda which, historically, had fragmented political entities and no political administrative units above the local village who charged taxes. “The areas of Uganda that had pre-colonial centralisation are strongly correlated with a higher willingness to pay taxes in today’s Uganda,” write Ali and Fjeldstad.

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Week Ahead

🗓️ The Africa Tech Festival will bring together government, energy, and telecoms leaders in Cape Town, South Africa, with speakers expected to include the country’s minister of digital technology and Guinea’s minister of digital economy. (Nov. 13-16)

🗓️ The Intergovernmental Negotiating Committee to develop an international legally binding instrument on plastic pollution is scheduled to convene at the UN Environment Programme (UNEP) Headquarters in Nairobi, Kenya. (Nov. 13-19)

🗓️ Liberia’s presidential election run-off is scheduled for Tuesday, with President George Weah, a former soccer star, facing off against main opposition leader Joseph Boakai. Both candidates failed to secure more than half of the votes in the first round held last month. (Nov. 14)

🗓️ The U.K. Supreme Court will on Wednesday deliver its ruling on a government plan to send asylum seekers to Rwanda to deter people arriving in the country through what it termed illegal, dangerous, and unnecessary methods. The Court of Appeal in June had termed the plan unlawful. (Nov. 15)

🗓️ Financial industry leaders will gather in Lome, Togo, for the two-day annual Africa Financial Industry Summit to discuss solutions to the challenges faced by the finance sector. (Nov. 15-16)

🗓️ Madagascar is set to hold a presidential election on Thursday. President Andry Rajoelina, who is seeking a second five-year term, is among 13 candidates that include Hajo Andrianainarivelo who leads the main opposition party. (Nov. 16)

🗓️ Policymakers and researchers will gather in Addis Ababa, Ethiopia, for the African Economic Conference whose organizers include the African Development Bank and the United Nations Development Programme. (Nov. 16-18)

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Hot on Semafor
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  • Wall Street and Hollywood billionaires have discussed a plan to spend as much as $50 million on a media campaign to “define Hamas to the American people as a terrorist organization.”
  • The odds of reaching a consensus at the hotly anticipated COP28 summit on the most important climate solutions are slim.

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Happy 48th anniversary to the people of Angola 🇦🇴! (Nov. 11)

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— Yinka, Alexis, Alexander Onukwue, Martin K.N. Siele, and Muchira Gachenge

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