Twiga confirms that it laid off its sales team in 2022 as it adjusts its commercial model
Twiga shifted its sales model after restructuring operations that eliminated internal sales teams. It has the right to terminate working relationships with underperforming independent contracts. Twiga Foods, a business-to-business (B2B) platform that connects farmers and food vendors, has confirmed that it no longer has an in-house sales team after a cost-cutting move it implemented last year. The cost-cutting move was a round of layoffs in October 2022 that affected 211 people, and the company’s CEO Peter Njonjo has clarified that contrary to some claims, there have been no new in-house workforce cuts. However, he shared that Twiga has changed its sales model and now works with several independent agents instead of full-time salespeople. In an email to TechCabal, Njonjo said, “We made the changes to our commercial team last year in October. We wanted to convert the role of a salesperson from that of an employee to a free agent. We made redundant the role of a Trade Development Representative and thus impacted 211 people. We paid all dues as per the Kenyan Employment Act. Other big companies followed suit in Kenya.” The layoffs mean that Twiga no longer has a sales department staffed with full-timers. Njonjo defended the firings as converting the salespeople to ‘free agents.’ “We no longer have dedicated sales agents in Twiga,” said Njonjo. Twiga’s new agent model According to Njonjo, Twiga stopped working with several sales agents following a performance evaluation. “Under the new agent model we rolled out last year, we are always reviewing sub-optimal sales territories, and it has been quite an iterative process. The decision to merge sales clusters drove the reduction in the number of agents, mainly driven by the viability of those clusters (driven by performance over time). The agents are independent actors, where in most cases they don’t work exclusively for the company, so this was based on the viability of those clusters,” added the CEO. Njonjo’s Twiga did not disclose the exact number of affected sales agents. One of the independent agents told TechCabal that Twiga assigns areas they should cover. The source also confirmed that Twiga does not restrict agents in terms of companies they work with. Still, they have to meet set goals to continue contracting for the company. Yesterday, Twiga let go about 60% of their sales team of 450 in Nairobi, citing harsh business environment.We always tout innovation as a watertight solution. But FCMG distribution has been showing players fire for a while. Seems it doesn’t matter if you’re traditional or not. — Spry Voice (@SpryVoice) June 6, 2023 Twiga assesses the agents monthly. If they do not serve their clients satisfactorily, they are replaced by a waiting list of new applicants. Njonjo says a waiting list of 2000 people is ready to be onboarded as sales agents. This is likely why Twiga is stringent in handling agents because if they cannot perform, a new set of agents would replace them. This business model has perhaps led to an online discussion faulting Twiga for firings. While that might be the case, Twiga has not laid off any permanent employees. Adopting the model makes it clear that underperforming independent agents will continue to be laid off. Last week, Twiga transferred its rights at the Galana-Kulalu Scheme to Selu Limited. Selu Limited has been set up as a specialised entity to invest in the irrigation project. The aim is to develop 20,000 acres of land for maize production, utilising innovative and sustainable farming methods. Towards the end of 2021, Twiga Foods secured $50 million in new funding to support its East and West Africa expansion efforts. The investment was raised by its existing investors, including the International Finance Corporation, TLcom Capital, Creadev, Juven, and DOB Equity. What do you think about our stories? Tell us how you feel by taking this quick 3-minute survey.
Read MoreNIBSS cuts instant transfer fees, but banks will not lower customer transaction fees
Nigerian Inter-Bank Settlement System (NIBSS), Nigeria’s largest payment infrastructure, has reduced the processing fee for transactions on its platform. How does that affect you? According to documents seen by TechCabal, NIBSS has reduced the processing fee for transactions on NIBSS Instant Payment (NIP). The new ₦3.75 pricing for instant transfers—down from ₦5—will take effect on July 1, 2023. An anonymous source at NIBSS told TechCabal that the reduction resulted from commercial banks asking for a reduction in the cost of transactions. The source added that the reduction would not affect the transaction fees banks charge their customers. It’s a position that financial services experts agree with. Adedeji Olowe, the founder of Lendsqr, told TechCabal, “[The] truth is, the impact would be nothing except the Central Bank compels banks to reduce pricing.” Olowe’s comments ring true, as only the CBN can instruct banks to reduce their transaction fees. Currently, banks charge a ₦10 fee for transactions under ₦5,000, ₦26 for transactions between ₦5,000 and ₦50,000, and ₦50 for transactions above ₦50,000. Would the NIBSS reduction affect transfer fees for customers? Abubakar Idris, a business journalist, told TechCabal that for banks and fintechs, “every kobo counts”. “A reduction in NIBSS fees won’t necessarily trigger any decrease in customers’ payment fees,” he said. Idris added that for fintechs, the cost of serving customers is not decreasing. “Server fees are in dollars, compensation for talent has become competitive, and rising inflation and devaluation mean businesses are already struggling to stay afloat”, he said. Additionally, transaction fees are a critical revenue source for Nigerian banks. In 2022, Access Bank, Zenith Bank, Ecobank, and UBA made ₦145.7 billion, ₦132.8 billion, ₦200.9 billion, ₦128.2 billion, respectively, from fees and commissions. These figures made fees and commissions the largest or second-largest contributors to the banks’ non-interest income. It explains why the banks hope that the CBN doesn’t ask them to reduce their fees. In December 2019, the CBN, in a move to offer stability and improve financial inclusion, compelled banks to reduce their fees. Some banks hesitated due to concerns over their profit margins. Their hesitance was met with fines. But Charles Odogwu, the growth head for NowNow, believes that it’s not a binary conversation. He says that if banks lower transaction fees, it can “stimulate increased transaction volume”. He added that this could translate into more revenue opportunities for banks, “especially if they have a significant market share in electronic payment services”. On the flip side, he said that reducing transaction fees may impact banks’ profit margins. “If the price reduction is significant, banks may experience a decline in transaction fee revenue, which could affect their overall profitability”, Odogwu said.
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🚀Entering Tech #33: How Data Community Africa helps data professionals
From a festival to a community. 07 || June || 2023 View in Browser Brought to you by Issue #33 Communities: Data Community Africa Share this newsletter Greetings ET people If you’re looking to enter or go further in the gripping world of data-driven wonders, where numbers dance and insights sparkle, then this edition of Entering Tech is for you. A few weeks ago, we began the discussion on communities in tech and how the right ones can help you thrive in your chosen field. Today, we’re talking data! If you’re already on your journey in this field, or looking to get in; fear not; you don’t have to go it alone. Say hello to Data Community Africa, the space for connecting with like-minded souls who share your passion for turning raw data into gold. In this community, you’ll be able to learn more and grow through learning programmes, certified courses, job and internship opportunities and the good old power of community. Happy reading, and may the data gods be ever in your favour! by Pamela Tetteh and Timi Odueso. Tech trivia This week’s trivia is inspired by Apple’s new $3,500 AR goggles. What’s the difference between virtual reality, augmented reality and mixed reality? What is Data Community Africa? A few weeks ago, in a now-deleted tweet, I mentioned I was looking for an exceptional data analyst to feature on the Entering Tech Shorts. Almost immediately, I got two recommendations from Tina Okonkwo—a data analyst we featured in Entering Tech #10—and another acquaintance. Both Tina and the acquaintance had recommended the same people: David Abu and Olanrewaju Oyinbooke. Within minutes, I had not only the Twitter handles of these two guys, but their email addresses and phone numbers as well. When I asked how they both had these contacts, their responses were similar: David and Ola are popular in the data community because they’re helping newbies learn about data. This story bears semblance to how Data Community Africa started: a tweet, and people looking to make change. In March 2022, David Abu tweeted, “We want to run a data conference in Nigeria that includes all data roles in the workplace. It will be called DATAFEST2022. The goal is to understand different aspects of data and how all data life cycles have evolved over time.” With Gift Ojeabulu, a data scientist with over 10 years of experience, and Olanrewaju Oyinbooke, Abu hosted the first-ever event showcasing all data roles in the African space. But what started off as DataFestAfrica, an event attended by over 4,000 people, has now evolved into a community of like-minded individuals who are relentlessly pursuing three goals: community, job opportunities and scaling—so people in data can grow in their career journeys. And that’s how Data Community Africa started. How Data Community Africa works Data analysts, scientists, and everyone in data 2,000 Nil. Absolutely free Discord If you’re wondering what the benefits of joining Data Community Africa are, here are a few: A. Monthly learning programme: Every month, the community hosts a series of online workshops and tutorials designed to help data professionals in Africa learn new skills and stay up-to-date on the latest trends in data science and machine learning. The programme is open to all levels of experience, from beginners to experienced professionals. In the past, the programmes have hosted tutors like Bitergia’s Ruth Ikegah. B. Job Opportunities: Data Community Africa has partnered with a number of companies to offer job opportunities for data professionals. For example, it recently partnered with the African Development Bank to offer a data fellowship programme for young data professionals to develop the skills they need to work in the financial sector. It’s also partnered with Propel and Deep Brown Consulting to help data professionals find jobs. Since the community kicked off less than 6 months ago, at least eight community members have found jobs! C. Skill development: So we’ve mentioned the monthly learning programme at Data Community Africa. But there are even more opportunities where newbies can gain data skills. The community offers a variety of skill development opportunities for data professionals, including online courses, workshops, and meetups. For example, it has partnered with DataCamp—a global data learning platform to offer online courses and certification programmes that data professionals can complete to demonstrate their skills and knowledge. D. Events: Data Community Africa started from an event, so it stands that the community will keep hosting physical meet-ups and other events for its members. While we have it on good account that DataFestAfrica 2023 is coming soon , members have also participated in datathons where data professionals can show off their skills and win prizes of up to ₦400,000 ($900). E. Community: Finally, there’s the first reason Gift and David founded Data Community Africa in the first place: to bring data professionals together in a space where they can grow. And the Community has a lot of that. On Discord, DCA has over 2,000 members while its Twitter page boasts of 17.3k engaged followers. What people say about Data Community Africa Speaking of community, here are a few rockstars who you will meet when you join Data Community Africa and what they’re saying: If you’re a data professional or you’re looking to enter tech through data, the good news is that Data Community Africa is free and ready to help. All you have to do is click a button. Join Data Community Africa on Discord The Entering Tech Shorts Speaking of data, what do data analysts do and how can you become one? In this one-minute video, senior cloud advocate at Microsoft, Olanrewaju Oyinbooke, explains what data analysts do and if Professor X from the X-men really is one. Watch the 1-minute YouTube Short here! Ask a techie Q. What are the career paths in technical writing? There’s a lot you can do with technical writing. Other than just documenting processes for tech and product teams, here are a couple of other career paths technical writing fits in. Technical writers
Read MoreOne year after its launch, MTN’s MoMo still needs to reach more Nigerians
MTN Mobile Money (MoMo) began exactly May 2022. Now in June 2023, exactly a year and a month later, it is yet to be adopted by Nigerians on the street. Trying to find an MTN Mobile Money (MoMo) agent is like searching for a needle in a haystack. For weeks, I’d meant to sign up and try MoMo, but I kept running into problems. One problem: While trying to register with USSD, a prompt asked for my state and local government area. Because you fill in these details using only the first three letters of the local government area, there’s no way to differentiate between Ojodu Berger and Ojo, for instance. I figured that finding a MoMo agent would solve the problem. So on Friday, I walked the length of Ilori Moses street—for the second time in a week—to find a MoMo agent. As I widened my search area, the responses were the same: most of the POS operators did not offer MTN’s Mobile Money service and couldn’t direct me to agents who did. It wasn’t a big surprise considering that the CEO of MoMo PSB Eli Hini, admitted on a call with TechCabal that the service is still seeking adoption. Per its 2023 first quarter result, MoMo has 3.2 million monthly active mobile money (MoMo PSB) wallets, accounting for 43.2% of the telco’s users. While MTN’s impressive distribution lets it reach 19 million people, it still has a long way to go in becoming a service of choice. According to Hini, “We have over 3.5 million people who use wallets on a 30-day basis to perform transactions and that’s where our focus is— to grow and allow many people who need our wallets to experience transactions that are fast and easy to process. We want to reach more people in Nigeria. By all means, we also enable traditional banks and mobile money account holders. Therefore, it should be possible to be able to pay your mechanic, plumber or service provider who doesn’t have a bank account but has a mobile phone.” But there’s still some way to go before MoMo has a commanding market presence. In conversation with mobile money agents in Lagos, TechCabal found that MoMo is not especially popular with users. Finding MoMo users in Lagos “People are not using the wallets, it is not common here. There is only one lady that makes use of her MoMo wallet and I fund her,” Eniola Alatise, an agent who runs both the MoMo and POS service in Ikeja tells me. Another agent on the network based in Magboro, Ogun state, Temitope Bukola, admits that usage is lower than the regular POS. “Very few people use it, most of the main users are agents that use it for transfer and selling of recharge cards. People use it, but not like the regular POS,” she explained. Another agent, Afariogun Michael, who operates a POS business in addition to the mobile money service, in Oshodi, one of Nigeria’s thriving markets told TechCabal that for the MoMo service, the customer figure is an average of 30 customers on a daily basis. Even with this more optimistic figure, it was still hard finding MoMo users. Of the three people I spoke with at Ojo, Lagos, only one, a law student uses the service. Recovering from a difficult start Days after MTN launched MoMo in 2022, it lost over ₦10.5 billion to unauthorised transfers caused by a system glitch. According to a suit dated May 30, 2022, MoMo alleged that ₦22.3 billion ($48 million) was transferred in error to 8,000 accounts maintained by the 18 banks’ customers using MoMo. It is possible that a lack of trust could be stalling wider adoption. But Hini told TechCabal that the firm is now past that and it has appealed to super agents and fintech companies to use its platform, as it can assure better security. “What we have done as a business is give comfort to our customers and also the assurance that we as a business have enhanced our governance within the period and improved on various interventions and controls. Remember that in this ecosystem, you have interactions that are not dependent on your platform and we have third party integration as well. A lot of work we have done is to strengthen controls along integration and partnership arrangements,” he said on the call. MoMo’s CEO envisions a future where the service is home to the banked, unbanked and underserved. Yet, there’s still some way to go if MoMo will replicate the success of mobile money services like Mpesa or Wave.
Read MoreRide-hailing drivers in Nigeria begin nationwide strike as they ask Uber and Bolt to increase fares by 200%
Across Nigeria, ride-hailing drivers are protesting. They’re demanding that Uber, Bolt and other ride-hailing companies increase fares by at least 200%. A typical weekday morning in Lagos is rush hour, a good time of the day for cab drivers. But this Wednesday, ride-hailing drivers—think: Uber, Bolt, LagRide, Indriver—are protesting. At the direction of the Amalgamated Union of App-based Transport Workers of Nigeria (AUATWON), ride-hailing drivers are following a sit-at-home order until the ride-hailing companies increase their base fares. The union also has other demands. According to the National Vice President for Southwest Nigeria (AUATWON), Kolawole Aina, “Each local government in Lagos State and by extension, all states in Nigeria will be protesting today at the same time.” TechCabal also understands that the drivers plan to picket the offices of Uber in Victoria Island and Bolt in Lekki. “All e-hailing platforms are shut down from today till Friday,” Aina told TechCabal over the phone. “The riders should find another alternative,” he said. AUATWON is hopeful that the strike will not last long. “The strike may not have to last that long if they (Uber and Bolt) do what we ask in time,” Somoye Olalekan, the Public Relations Officer for the union, who is leading the protest in Ifako Ijaiye local government, another location for today’s strike, told TechCabal. At the time of filing this report, protest activities have begun in Edo State. Comrade Jolaiya Moses told TechCabal he would join the movement from there. Despite the strike action, which is supposed to run till Friday, I could still find a driver on the Bolt app who was five minutes away. As with most ride-hailing strikes, enforcement is difficult because many gig workers need to work daily to survive or make repayments to the owners of cars or make good on loans. The AUATWON task force understands the enforcement problem, and in Ifako-Ijaiye, the union is stopping drivers who are working. AUATWON’s demands As TechCabal reported on Tuesday, at the heart of this week’s strike is a demand by AUATWON asking ride-hailing companies to increase fares by a minimum of 200%. The union is also asking for a 50% reduction in commission—Uber and Bolt collect a 20% commission on every ride—and an end to the deactivation of drivers who refuse to work due to the low fares and attendant unprofitability. The union is also seeking the recognition of AUATWON as the representative body for their interests. *This is a developing story.
Read MoreInaugural GITEX Africa leaves a firm imprint of Morocco’s surging tech ambition
Morocco is positioning itself as a gateway to Africa’s technology sector and the United Arab Emirates (UAE) which shares the same ambitions for the Middle East is more than happy to help. Last week, thousands of visitors descended on the red city of Marrakech for GITEX Africa. It was the first time the popular tech trade show was being organised outside of the UAE. For three days, the 45,000-square-metre purpose-built exhibition space at Place Bab Jdid, Bd Al Yarmouk in Marrakech hummed with activity as attendees waded through multiple simultaneous conference tracks and 900 exhibition stalls. Among the exhibitors were 100 startups from a Moroccan government-supported startup development programme selected to demonstrate the country’s startup ambitions. Coming from the organiser of a 42-year-old technology trade show that has been held at the Dubai World Trade Centre since 1981, it represented an acknowledgement of the coming-to-age of technology startups in Africa. The long road to Morocco According to Trixie LohMirmand, executive vice president at the Dubai World Trade Centre, GITEX Africa, Morocco, was organised in the seven-month space between the official announcement last October. But the GITEX event brand, which now boasts itself as the biggest technology event in 2023, worked its way up from relatively humble beginnings in 1981. In 1981, Dubai was in the early stages of recasting itself from a sleepy port town and residence of the British agent for the former Trucial States, into a modern port city. Jebel Ali Port had been commissioned only two years prior and the new highway linking Dubai to Abu Dhabi, the capital, was barely a year old. One of the projects being constructed around the same time as the port and highway was the 38-storey, 184-metre-tall Sheikh Rashid Tower (now the Dubai World Trade Centre). Purpose-built for events and trade shows, the tower, which was commissioned in 1979, was Dubai’s tallest building at the time and became the site of the first Gulf Information Technology Exhibition (GITE) trade show which was held in 1981. The 2009 launch of Microsoft’s Windows 7 operating system at a GITEX trade show in Dubai put the regional event on the global tech trade show map. Since then, Dubai World Trade Centre has hosted successive tech trade shows each year, attracting thousands of attendees each year. In October last year, as technology startups in Africa neared a record-breaking fundraising year, Kaoun International and the Dubai World Trade Centre announced that it was bringing GITEX Global to Africa. Beyond North Africa’s broken regional market By positioning the event in all but name as a celebration of relations with the UAE, GITEX Africa signalled a decided Moroccan turn towards Middle-Eastern partners in the Gulf. The currently untenable alternative is a deeply fragmented regional market that encompasses neighbouring North African states, with the possible exception of Egypt. Last year, Morocco’s relatively stable relations with Tunisia broke down after Tunisian president, Kais Saied, met with the leader of Polisario Front, a militant Sahrawhi nationalist group claiming Western Sahara for itself. Algeria to the east has not had good relations with Rabat. And Mauritania in the southwest is a smaller and far less wealthy market, compared to a wealthy Gulf partner like the UAE. Read also: Here’s why startup funding in the Maghreb ecosystem is low Morocco is also seeking to position itself as a gateway destination for technology investment, especially from friendly Gulf countries like the UAE. “Morocco is a source of pride for Arab countries,” Omar Sultan Al Olama, the UAE’s minister of state for artificial intelligence, digital economy, and remote work applications enthused at the opening ceremony of GITEX Africa. “The UAE is here to celebrate a year of fruitful partnership between the emirate and the Kingdom of Morocco,” he added. The UAE was Morocco’s second-largest source of foreign investment last year. Investments made by Emirati entities surpassed $14 billion in 2021, accounting for 21% of total FDI in Moroccan markets according to reporting from Zawya. With Morocco’s well-established but unyielding traditional banking and finance industry, it could be a genius move to be positioned as the funnel for capital meant for emerging African markets. It is certainly a bold statement. On the other hand, increased appetite for alternative investment asset classes like venture capital has seen private investment firms and Silicon Valley investors turn to family offices and Middle-Eastern sovereign wealth funds for capital. What would be harder is convincing funds seeking to invest in technology hotbeds in Africa to route it through Morocco instead of allocating capital directly to investment firms in Egypt, Nigeria, Kenya or South Africa. Building a tech kingdom In speeches and panel sessions, various attending government officials from Morocco emphasised plans to make Morocco a nerve centre for technology investments in Africa. “The impact of this first African edition on the Moroccan tech ecosystem might not be immediate, but we are definitely expecting long-term benefits,” Mehdi Al Aloui, head of the startup department at the Moroccan Development Agency said. One of the drawbacks the country will need to address is its well-reported stifling bureaucracy. Besides hindering the growth of the startup ecosystem, bureaucracy in the country is equally standing in the way of major economic reforms, one report claimed. A Startup Act can help and Moroccan officials at GITEX Africa seem open to the idea, but the country already has several startup support initiatives and programmes running. Morocco also ranks high on Doing Business Index, but analysis by The Moroccan Institute for Policy Analysis, and the Middle East Institute suggest that easy and quick legislative fixes that boost DBI rankings have had little impact on changing administrative practices on the ground. Hosting one of Africa’s largest tech trade shows and conferences this year is a bold step, but a seachange in Morocco’s fortune as a key technology player and innovation centre will both require the government to be less visible. Hosting brilliant event showcases is nice, but lifting the suffocating weight of bureaucracy and allowing private innovation enterprises to flourish,
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👨🏿🚀TechCabal Daily – An “exceptionally obvious” Bingo play?
Lire en français Read this email in French. 7 JUNE, 2023 IN PARTNERSHIP WITH Good morning We’ve got exciting updates coming next week! Our referral system relaunches, and TC Daily will look a lot different. Don’t worry, though, we’ll give a full feature when the time comes. Image source: Aderemi Adesida/TechCabal In today’s edition Hindenburg research calls Tingo a scam Mara’s second layoffs Updates from Apple’s WWDC Jumia to extend into Uganda The World Wide Web3 Event: The Moonshot Conference Opportunities HINDENBURG RESEARCH CALLS TINGO A SCAM Hindenburg Research, a US-based investment research firm, has accused Tingo Group, a Nigerian company, of being an “exceptionally obvious scam with completely fabricated financials”. Tingo’s lies: Hindenburg accused Tingo’s founder and CEO Dozy Mmuobuosi of lying about creating the first mobile payment app in Nigeria. It also reported that the Malaysian university which Dozy claimed gave him a PhD said that no one by his name was found in their verification system. Tingo founder Dozy Mmuobuosi More fabrications: In 2021, Tingo announced that it had partnered with Nigerian bank FCMB to expand its mobile services, which would birth its payment group, TingoPay. Two days after the announcement, FCMB debunked the claim. Hindenburg also reported that Tingo photoshopped its logo on another PoS operator’s devices and claimed that the PoS and other merchant products were offerings of its payment group, TingoPay. The firm also said it found that no links to the TingoPay app are on the Google Play Store or the Apple Store. The company also reportedly photoshopped pictures of aeroplanes which it posted online in 2019 as planes of its airline “Tingo Airlines”. The Athletic reported in February that Tingo Airlines’ registered address was removed from its documents, with a note saying that the address was “invalid or ineffective and was forged”. Disappearing acts: Tingo also claimed that its mobile handset leasing, call, and data segments generated $128 million in revenue in the first quarter of 2023. Hindenburg reported that the Nigerian Communications Commission (NCC) showed no record of Tingo being a mobile licencee, despite the company’s claims of having 12 million mobile customers. Hindenburg also debunked Tingo’s claim that its agricultural export business, Tingo DMCC, was on track to deliver over $1.34 billion in 9 months—more than Nigeria’s export in the whole of the previous year. Even worse, the company was not listed in the Nigerian customs database. In addition, Hindenburg found that the links on the website for NWASSA Twigo’s marketplace for farmers in Ghana are not working. More drama in store: Tingo Group’s share price has been plummeting since Hinderberg Research published its findings and announced that it is shorting the company’s shares. Tingo’s shareholder’s meeting is, however, set to hold at 2 PM WAT today. MONIEPOINT RANKED 2ND FASTEST-GROWING AFRICAN COMPANY Moniepoint is Africa’s second-fastest growing company, as shown in FTs latest report. We also processed 1 billion transactions worth $43 billion in Q1 alone. Read all about it here. This is partner content. MARA’S SECOND ROUND OF LAYOFFS Web3 startup Mara has enforced its second round of layoffs. The first layoffs in December coincided with the resignation of a co-founder Kate Kallot and the collapse of crypto exchange FTX, a sister company of Alameda Research, one of Mara’s investors. The startup, however, told TechCabal that the job cuts had nothing to do with the crash of the exchange. The second layoff: The second round of layoffs happened in May. While one report described a pattern of frivolous spending by Mara’s management team, a source told TechCabal that the startup restructured the team with a renewed focus on existing users and launching other projects that will drive crypto adoption in Africa. One source said the layoff mostly affected staff in marketing, communications, and community management. Another source told TechCabal that a number of staff in other teams were laid off too. But it appears that the startup has not frozen hiring. A source disclosed to TechCabal that the company has just hired several engineers despite the layoffs. MORE FROM TECHCABAL Struggling ride-hailing drivers in Nigeria reject Bolt’s revised pricing. Digital support: Embracing virtual strength for mental health. UPDATES FROM APPLE’S WORLDWIDE DEVELOPERS CONFERENCE Apple is investing heavily in mixed reality (MR). On Monday, at its Worldwide Developers Conference (WWDC), it unveiled Vision Pro, its mixed reality and first 3D camera headset. Here’s everything that was announced at the WWDC. The Vision Pro AR Headset: Although there’s no exact release date, we know Apple’s new product costs a whopping $3,499 and will be launched in early 2024. With a new spatial operating system called Vision OS, a bunch of iPad and iPhone apps will be ready to go on Vision Pro when it launches. Per CNN, the new mixed reality headset will work with apps like Apple’s new Reality Composer Pro, an innovative app simplifying the creation of complex scenes featuring life-like objects. Popular productivity apps like Microsoft Word, Excel, and Teams, as well as video conferencing tools such as Zoom and Cisco’s Webex, will be included on Vision Pro. A report by Apple Insider gives a more detailed explanation of the new product. New Macs: Apple had some exciting news for its Mac line, with updates that include a fresh 15-inch MacBook Air with a price that starts at $1,299, a revamped Mac Studio, and a Mac Pro featuring the advanced Apple M2 Ultra Silicon. Software updates: Apple also announced iOS 17, its next update for the iPhone and iPad. iOS 17 brings new updates to FaceTime, Messages, and the phone app to make your iPhone experience more user-friendly and personal. It offers interactive widgets, iPhone-like lock screen customisation options and live activities on the lock screen for iPads. iOS17 will not support the iPhone X, iPhone 8, and iPhone 8 Plus. More announcements were made, like the new operating system for Apple’s Mac desktops and MacBook called MacOS 14 Sonoma and WatchOS 10 for the Apple Watch. You can find the rest of the announcement here.
Read MoreShortseller Hinderburg Research calls Tingo Group an exceptionally obvious scam
Tingo Group, a Nigerian Agri-Fintech, has seen its share price plummet by -55% on NASDAQ after Hinderberg Research announced that it had taken a short position on the company for being an “exceptionally obvious scam”. Hindenburg Research, a U.S.-based investment research firm focusing on short-selling, has accused Tingo Group, a Nigerian company, of being an “exceptionally obvious scam with completely fabricated financials”. In a statement on Tuesday, Hindenburg said that Tingo inflated its financials, lied about its $1.6 billion food processing plant, its expansion drive to Ghana and that it photoshopped its logo on another POS operator’s device. The research group also accused Tingo’s founder and CEO, Dozy Mmuobuosi, of fabricating parts of his personal and professional history. Mmuobuosi had previously been in the news for trying to buy a newly promoted Premier League team, Sheffield United, and for sponsoring Nigeria’s football league’s pre-season cup. Mmuobuosi’s claim of founding the first mobile payment app in Nigeria was disputed by the actual creator, Deji Oguntonade, who called Mmuobuosi’s claims “totally false” and a “pure lie”. Mmuobosi’s claim that he received a PhD from a Malaysian university was also refuted by the university, which said that no one by his name was found in their verification system. In 2019, Mmuobuosi claimed that he had launched “Tingo Airlines” and encouraged people on social media to fly with the airline. The airline is registered in England as Tingo Airlines Limited and declared a share capital of £1 billion in August 2019, with Mmobuosi as the sole shareholder. The Athletic reported in February that there is no evidence of Tingo Airline ever flying an airplane, that its registered address was removed with a note saying that the address was “invalid or ineffective and was forged”, and that the company is facing an active proposal to be struck off the UK’s registrar of companies. In April, the co-chairman of Tingo wrote a public letter to Mmuobuosi and filed it with the SEC, saying that he could not approve the company’s annual report. In the letter, he said that he felt it “necessary to recuse myself by resigning” due to “many critical questions, comments, and recommendations” that went “unanswered and unheeded”. Tingo has also previously claimed that its agricultural export business, Tingo DMCC, was on track to deliver over $1.34 billion in exports by the third quarter of 2023. A claim that exceeds the entire Nigerian agriculture export value for 2022. Hindenburg said Tingo DMCC was not listed in the Nigerian customs database. Tingo also claims to have launched its NWASSA market, a marketplace that allows farmers to sell products wholesale or retail without middlemen interference, in Ghana. Hindenburg found that the website for NWASSA did not work and “led nowhere”. Tingo also claims its payment group, TingoPay, has Point of Sale (PoS) and other merchant products. However, the research group found this not to be true. No links to the TingoPay app are on the Google Play store or the Apple Store. Also, Tingo’s POS website images were lifted from an Indian payments company, PocketPOS. Tingo also claimed that its mobile handset leasing, call, and data segments generated $128 million in revenue in the first quarter of 2023 and that these services are provided through an agreement with Airtel Nigeria. The type of license they claim did not exist until June 2023. Hindenburg said that checks with the Nigerian Communications Commission showed no record of Tingo being a mobile licensee, despite company claims of having 12 million mobile customers. In 2021, Tingo claimed to have launched a partnership with a prominent Nigerian bank to expand its mobile services, which would birth its payment group, TingoPay. Two days after the partnership announcement, the bank debunked the claim. TechCabal sent several emails to Tingo asking for comments, but the company did not provide one at the time of this report.
Read MoreDigital support: Embracing virtual strength for mental health
In this digital era, technology is irrevocably embedded in our daily lives, and as such, our online experiences have an outsized impact on our mental health. However, technology can also offer support for the promotion and nurturing of our mental well-being. Social media platforms like Facebook, Instagram, and Twitter have become ingrained in our daily routines, allowing us to connect with others, share stories, and express ourselves. However, regular usage of social media can also lead to increased rates of anxiety and depression, particularly in young people. But the internet transcends this dichotomy, and can also offer resources and digital support to better understand mental health conditions and get help for them. A closer look at the connection between our digital lives, and our mental health can reveal a number of ways to make the most of the resources digital support offers to nurture our mental well-being. Understanding digital support Digital support for mental health comprises a range of resources and platforms that leverage technology to provide assistance for mental health issues. This includes concept online therapy platforms, virtual communities, chatbots, videos, and articles. Digital support for mental health provides some sort of anonymity, allowing individuals to seek help without the fear of being judged. It also facilitates connections with diverse support networks, enabling individuals to connect with others who understand and share similar experiences. Additionally, with round-the-clock availability, digital support for mental health ensures that individuals can always access help when they need it. Although digital mental health support isn’t a replacement for traditional therapy, it combines technology and human interaction to provide accessible, informative, and practical assistance to individuals seeking mental health help. The impact of social media on mental health Nigeria’s mental health system faces numerous challenges and gaps, especially in local communities. There is a lack of awareness and understanding, which leads to stigma and discrimination. This worsens existing issues and creates barriers to accessing quality care. Statistics show that 80% of Nigerians with mental health needs cannot access care due to societal attitudes toward mental illness and a lack of appropriate resources, facilities, and mental health staff. Hauwa Ojeifo, a certified integrative mental health coach and activist, and the founder of She Writes Woman and Safe Place Nigeria shed some light on the challenges surrounding the utilisation of social media for mental health support and interventions. In a conversation with TechCabal, she explained that not everyone with a mobile device has access to digital spaces. “We have to recognise that whilst mobile phone penetration in Nigeria can seem quite high, internet penetration is not as high as we think,” she told TechCabal. “So as much as we are using social media or digital media as opportunities to spread mental health awareness, to provide accurate information and knowledge around mental health, and to provide some sort of first aid, we have to recognise that we’re actually not reaching the furthest behind first. We’re not reaching, perhaps most of the grassroots, and the people who may not actually have the privilege, access, or orientation to be able to navigate the digital space,” Ojeifo concluded. Nonye Ukwuoma, a licensed clinical psychologist, psychotherapist, and founder and lead consultant at 360 Psyche, believes that social media can also be used to spread misinformation about mental health as well as foster mental health challenges. “Social media can promote misinformation about mental health and encourage unreliable sources. Social media creates its own mental health challenge such as cyberbullying, even within the space where people come to seek support. I have seen spaces on social media that should be considered ‘safe’, but they didn’t look safe because the suggestions offered as support can be outrightly or silently unhealthy for mental health,” Ukwuoma explained. However, Ojeifo is optimistic about the support digital access provides for individuals facing mental health challenges. She adds that the access plays a crucial role in bridging gaps. “I would say there’s been a lot of upsides to digital support, it means that we don’t have to be in physical proximity to mental health support before we can access it, and we can also get a network of community. And I think that’s something that is largely underestimated in the mental health recovery process, especially on this side of the world,” she said. “The digital space offers us an opportunity to connect with people just like us going through similar challenges, but also see what is working for other people and try to use that for ourselves. Having these sorts of interventions plug the gaps is very, very helpful in moving the needle forward.” Sharing in Ojeifo’s optimism about digital support, Ukwuoma believes that face-to-face interaction isn’t always necessary, and digital support methods will allow professionals to prioritise urgent mental health needs and ultimately lead to improved outcomes for clients. “We are a global village and one of the things we now know is that we do not have to see face-to-face. When I started practising, it seemed almost alien that we would help a client when they were not physically present.” she said. “This sometimes stretches a treatment plan that may eventually affect the prognosis. Currently, most organisations including 360 Psyche, encourage and prioritise digital support. Clients get support via phone calls, emails, chats, and video calls, among others. This gives time to focus on more pressing mental health needs, which translates to a better prognosis for clients.” Arinze, an active participant in an online mental health awareness community called Omhac, shared his perspectives about the positive impact of digital platforms and how Omhac has enriched his understanding of mental health. In joining the online community, his intention was to gain more knowledge on mental health. “I find it very easy to connect and interact with people in the group, and I’ve increased my knowledge of mental health. I’ve learned more about different techniques when combating mental health illnesses, and I have a general knowledge about how some of these things affect our day-to-day lives and the people
Read MoreStruggling Ride-hailing drivers in Nigeria reject Bolt’s revised pricing
In Nigeria, drivers of ride-hailing services are contesting Bolt’s newly reviewed prices. While the Union wants a N2,000 base fare, Bolt stands firm on N800 ceiling Last Friday, Bolt reviewed its pricing in Nigeria in response to increased operating costs. However, drivers and ride-hailing unions are dissatisfied with these new prices as they say it still does not cover their costs due to the recent hike in fuel prices. Per a report from Punch, the Amalgamated Union of App-Based Transport Workers of Nigeria asked ride-hailing companies like Bolt to increase fares it by at least 200% and establish a minimum fare of ₦2000 ($4.30). Bolt said ₦800 is the new minimum fare for a trip, up from the previous ₦650. Comrade Idris Shonuga, a National trustee of the AUATWON, told Techcabal, “A driver needs an average of 30-35 litres of petrol daily, which costs about N5000-N6000 before the subsidy removal. But now, 30-35 litres of fuel is worth up to N16,000 – N17000. That’s an additional 10,000 naira for fuelling daily to run the service. So on this account, it is important for the price to be reviewed.” Petrol is one of the essential materials we use to run our business, and since the price has gone up by 270, it is imperative that the price of the service we render has to increase,” he said. Shonuga says the union will “resist” and stop working if Bolt, Uber and other ride-hailing companies refuse to review their prices to meet the AUATWON demands. “We can resist them if they do not increase the price. We have to sell what we buy; If we are buying fuel for N6000 before and we now buy it for 15,000, the prices of the service we offer have to be adjusted by the percentage increment,” he told TechCabal. Celestine Finbar, a Bolt driver, agrees. According to him, the price increase by Bolt does not suffice given the new fuel prices. “Our calculation was that, if the previous price for a trip was ₦2,400 at ₦184 per litre, then if the pump price of fuel is 500/L and then you remove ₦500 from ₦184, you get ₦270, then it will be 270 times the old price. So that should be the increment,” he said. “I have not gone out in like four days, and you know what it means if other drivers do the same. If a driver was remitting like 5k and we have other drivers remitting the same amount per day, Do you know how much Bolt will lose?” Fuel hikes trigger surge in ride-hailing prices, leaving customers and drivers discontented No turning back While drivers and the ride-hailing union seek reviewed prices, Bolt says there is no turning back. “We understand that the rising fuel prices impose additional financial pressure on drivers who rely on the Bolt app for their income. While we empathise with the economic hardships faced by both passengers and drivers, we strive to consider the well-being of both parties. Bolt has taken the considerations of both drivers and customers when it comes to pricing,” Yahaya Mohammed, Country Manager, told TechCabal in an email. Bolt is wary of decreased patronage if fare prices are too high, but the ride-hailing company is open review the situation further in the best interest of both passengers and drivers. “Taking into account the issue of demand and supply, we understand that excessively high prices may not only discourage passengers but also affect the availability of drivers on our platform, as well as negatively impact their earnings. Therefore, our revised fares aim to strike a balance that prioritises the welfare of our passengers and drivers,” the statement read. “Bolt is committed to analysing and conducting extensive reviews to ensure that we continue to provide the best earnings for drivers on our platform and remain the most affordable and preferred platform for customers.” This is a position Uber agrees with. “Uber takes into consideration the economic climate in rolling out any price reviews. We believe this fare increase will have a positive impact on driver earnings while maintaining an affordable service for riders. Where price options are made too high, there could be a risk of fewer or no requests from riders – meaning fewer or no earning opportunities for drivers,” Uber said an emailed response to TechCabal. “We recognise the pressures drivers are under, including the increasing cost of living. It’s important to understand that fares do fluctuate as a normal part of any business based on various factors such as seasonality and the macroeconomic environment,” the statement concluded.
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