BEN secures $2.05M AI licensing deal for Africa expansion

Brand Engagement Network (BEN) has recently announced a major milestone in its African expansion strategy with the securing of a $2.05 million AI licensing partnership. This partnership, established with South Africa-based Valio Technologies, aims to introduce governed conversational AI solutions to government and commercial markets across the continent. The collaboration signifies a significant move for BEN, a Nasdaq-listed company, as it ventures into the African landscape.

For readers of eeNews Europe, this partnership stands out not only for its financial magnitude but also for its unique combination of AI licensing, data sovereignty, and practical deployment within a regulated environment. It showcases a shift towards tailoring AI architectures to meet local regulatory and cultural requirements, rather than relying on generic, internet-connected models.

Exclusive Licensing Framework for Africa

As part of the agreement, a new entity based in South Africa will contribute $2.05 million in preferred equity to BEN, which will be recognized as intellectual property licensing revenue. BEN will retain a 25% common equity stake in the entity, securing a board seat and a 35% revenue share across software, SaaS, services, and subscriptions. The entity will hold an exclusive license to deploy BEN’s AI solutions in African government and private-sector markets, with a perpetual term and right of first refusal on any sale.

The partnership revolves around BEN’s proprietary Engagement Language Model (ELM) and Retrieval-Augmented Generation (RAG) technologies, specifically designed to function in secure, closed-loop environments that adhere to data sovereignty and regulatory requirements.

Governed AI Pilot at Nelson Mandela University

An integral aspect of this collaboration is a memorandum of understanding with Nelson Mandela University to conduct a pilot program for an AI-powered mental health support system for students. This system, approved and governed by the institution, will be trained solely on university-sanctioned content and isolated from public models and the open internet.

The objective of this initiative is to complement existing counseling and wellness services by providing confidential and culturally relevant support, while ensuring appropriate escalation to human care when necessary. This initiative comes at a time when mental health challenges among university students are on the rise, both in Africa and globally.

“In mental health applications, accuracy, governance, and trust are paramount,” stated Lefentse Nokaneng, Chief Executive Officer of Valio Technologies and General Manager: Research at Brand South Africa. “We chose BEN because its technology prioritizes control and accountability, assisting institutions in responsibly exploring how AI can enhance existing support services.”

Scaling Governed AI Beyond Education

BEN views the African market as a promising long-term growth opportunity, fueled by a rapidly expanding digital economy and a growing demand for compliant AI in regulated sectors. Tyler Luck, Chief Executive Officer and Co-Founder of BEN, emphasized, “This partnership aligns with our strategy of combining commercial scale with real-world, institution-approved implementations. Africa, with its burgeoning digital economy and over 1.4 billion inhabitants, presents a substantial opportunity for the adoption of governed AI across public and private sectors.”

This collaboration follows BEN’s previous partnership with Skye LATAM and indicates a rising global interest in AI platforms that prioritize governance, compliance, and localized deployment over generic, open-access models.