MICT, Inc. and Tingo, Inc. have announced that Tingo Mobile PLC, which is being wholly acquired under a Merger Agreement with MICT, has signed a trade agreement with the All Farmers Association of Nigeria (AFAN), the umbrella body of the 56 recognized commodities and agricultural associations in Nigeria.
Under the terms of the agreement, AFAN has committed to add a minimum of 20 million additional subscribers, which would more than triple Tingo Mobile’s existing customer base of 9.3 million. These new subscribers would be comprised principally of owners of small and medium-sized agricultural enterprises throughout the country.
Tingo Mobile will provide the new AFAN subscribers with its full range of value-added products and services under its proven business model and fintech platforms, including:
- Tingo branded smartphones (in partnership with several handset manufacturers);
- Access to the Nwassa Agri-Fintech marketplace platform, allowing subscribers to trade their produce;
- Access to the TingoPay Fintech super-app, allowing subscribers to purchase airtime, data, telephony services and mobile telephone insurance, and also utilize TingoPay’s mobile wallet services, utility bill payment service and micro-loan facilities;
Visa-Tingo debit and credit cards; - Access to a wide range of agricultural products and tools, including, for example, farming equipment, seeds, fertilizer and pesticides;
- Access to warehousing, transport and storage facilities;
- Opportunities to wholesale produce locally and nationally, and/or export surplus produce, without suffering multiple layers of middle-men costs.
The enrolment of AFAN’s members with Tingo Mobile is expected to have a material impact on Tingo Mobile’s revenues and profitability. By way of reference, from its current base of 9.3 million customers, Tingo Mobile generated revenues of $525.7 million, gross profit of $317.4 million and income before tax of $298.4 million during the six months ended June 30, 2022 (as previously reported within Tingo Inc.’s Q2 2022 Form 10-Q). During this period, $252.4 million, or approximately 48.0% of the Company’s total revenue, was derived from service fees generated through the Nwassa Agri-Fintech platform.
Having branches in all 36 states of Nigeria, AFAN’s vision is to make Nigeria a nation where sustainable agriculture is the bedrock and core foundation of its thriving economy and means of livelihood. As part of its strategy, AFAN recently announced a national program and commitment to register all farmers across Nigeria, which it believes could grow the AFAN membership base to as many as 40 million farmers by 2024 with the potential to reach 60 million thereafter. As part of its relationship with AFAN, Tingo Mobile has committed to use its platforms and agri-fintech and fintech technology to support AFAN in achieving its goals and to assist in tackling the issues faced by Nigeria’s farming community.
For more information:
MICT Inc.
Phone: (201) 225-0190
[email protected]
Rory Bowen
Tingo, Inc.
[email protected]