Agri-Fintech Company Tingo Mobile Launches Operations In Ghana
Agri-Fintech Company Tingo Mobile Launches Operations In Ghana. MICT, Inc. and Tingo, Inc. announced that Tingo Mobile PLC, which is being wholly acquired by MICT, has opened a head office in Accra, Ghana and has launched nationwide operations. Tingo Mobile’s business in Ghana is held through a wholly owned subsidiary, Tingo Mobile Ghana Ltd (“Tingo Ghana”).
Ghana is regarded as a hugely important market for Tingo Mobile and its Pan-African expansion strategy, not least because of its strong and well-developed agricultural sector, as well as its considerable and thriving export market in non-staple products. Tingo Mobile has committed to work closely with the Ghanaian Government and its Ministry of Food and Agriculture to achieve its goal of growing Ghana’s agriculture sector’s contribution towards Gross Domestic Product, to be in excess of 25% by 2025 (25% of 2025 forecast GDP = $20.2 billion. Source: United Nations), compared to 19.1% in 2020, including through the improvement of crop production efficiency and crop yield, as well as the reduction of post-harvest losses.
To coincide with its launch, Tingo Ghana has agreed on a landmark trade deal with the Kingdom of Ashanti, through the Ashanti Investment Trust. The Kingdom of Ashanti presides over Ghana’s Ashanti Region, which has a population of approximately 5.4 million, and through its dominant position in Ghana and Ghana’s agricultural sector, also has a degree of influence over much of the country’s population of 32 million. Under the terms of the trade deal, the Ashanti Investment Trust has committed to enroll a minimum of 2 million new members with Tingo within 120 days of signing and has agreed on a target to increase such enrollments to at least 4 million members.
Tingo Mobile is replicating in Ghana the same proven business model that has generated more than $526 million of revenues and $298 million of net income before tax in Nigeria in the first half of 2022. In addition to rolling out its Nwassa Agri-Fintech marketplace platform in Ghana, Tingo Mobile also plans to launch the TingoPay SuperApp in the coming weeks, to include payment services, in partnership with Visa. The Nwassa platform is expected to benefit from significant revenues on both the buy-side and sell-side in Ghana where, because of more developed agricultural practices, farmers have a greater demand for inputs, including equipment, fertilizers, and pesticides, for example. Such market conditions in Ghana are expected to lead to a higher level of Average Revenue Per User (ARPU), which in turn is expected to lead to a further increase in profitability in 2023 and beyond.
Dozy Mmobuosi, Tingo Mobile Founder and C hief Executive Officer, commented: “When we announced our merger with MICT earlier this year, we explained that one of the key rationales for the transaction was MICT’s ability to help accelerate the globalization and dollarization of our business. As we move towards completion of the merger later this month, today’s launch into Ghana is tangible evidence of the strategy’s execution between MICT and Tingo and represents an important milestone in our international expansion. Having significantly strengthened our dominant position in Nigeria through our recent partnership with AFAN, our goal is to roll out the Tingo Mobile model throughout Africa, and into other parts of the world, where we strive to foster digital and financial inclusion, increase food production efficiency, and improve food security. Through our rapid growth in Nigeria, we have already demonstrated the effectiveness of our business model, including helping farmers increase crop yields, reducing post-harvest losses, and achieving better prices for their crops, and we look forward to bringing the same benefits to the farmers of Ghana.”
Mmobuosi continued to say, “With its government’s policy to markedly increase agricultural production, Ghana was a natural decision for our expansion, and I have every confidence that the Ghanaian market has all the attributes required to enable us to replicate Tingo Mobile’s success and achievements in Nigeria. To support us in our roll-out across Ghana, we are both delighted and privileged to be working with the Kingdom of Ashanti through the trade deal we have signed. We look forward to enjoying mutual success with our esteemed partner and towards working with them to bring the benefits we know can be delivered to the considerable number of members they enroll with us.”
Darren Mercer, Chief Executive Officer of MICT, commented: “Having achieved proven success in Nigeria, today’s first expansion into other territories sees Tingo Mobile move into a country that is a leading producer and exporter of several mainstream agricultural products. Ghana’s strong export market, particularly in non-staple crops such as cocoa, palm oil and shea butter, is expected to contribute significant revenues and profitability in 2023 and beyond and demonstrates our ability to immediately dollarize Tingo’s business. Tingo Ghana’s trade deal with the esteemed Kingdom of Ashanti is particularly exciting, not least because of the Kingdom’s eminence and status in Ghana, and also throughout much of Africa. This important trade deal, along with others under discussion, clearly demonstrates that Tingo Mobile and its Nwassa platform are an effective solution for increasing crop yields, improving food security, and empowering the farmer within the value chain. Today’s major milestone, together with the recently announced AFAN deal, are now expected to deliver significant growth in future profitability, over and above Tingo Mobile’s current run rate of $600 million per annum.”
