Digital Africa will only back startups whose technology serves the real economy
Noel K. Tshiani is the founder of Congo Business Network. In this exclusive interview for TechCabal, he discusses with Isadora Bigourdan, acting CEO at Digital Africa, whose mission is to equip Africa’s tech entrepreneurs with the capabilities to design and scale groundbreaking innovations for the real economy. The French Development Agency (AFD) was the driving force behind the creation of Digital Africa, and continues to be a major partner. As a super-aggregator of data, capacities, and opportunities, it has a unique ability to intensify financing, training, support, and promotional activities for entrepreneurs across the continent. Bigourdan has over 20 years’ experience in business structuring and financing, working as a lawyer, investor, business angel, and mentor. For the past 10 years, she has focused on Africa, where she has helped tech champions access funding and opportunities to grow their ventures and go global. In this interview, she answers questions on the role of Digital Africa in supporting Africa’s tech ecosystem, the challenges facing African entrepreneurs, and the opportunities for African startups in the global market. What do you see in the future of the tech ecosystem in Africa? From my 10 years of experience on the African continent, I have witnessed that technology appropriation is notably fast on the continent, compared to Europe, for example, and that people are increasingly paying attention to the tech ecosystem. A remarkable feature is that all startups are using technology to improve lives and facilitate access to essential services. However, there are disparities between countries in terms of technology advancement, training, and public policies to encourage tech entrepreneurship. In addition, only five countries attract 80% of the investment in Africa. Although financing is largely foreign to the African continent, the players involved in this field are becoming more professional. However, they often have limited knowledge of African realities. I am very optimistic about the role and place of African tech champions in the international digital scene, as more and more players are getting serious about it. In this regard, it is crucial that large African companies such as traditional banks and large corporations take into account the importance of technology as a driver for improving living conditions on the continent. Literacy plays a crucial role in driving the continent’s digital transformation at scale. Over the past decade, I have seen a real acceleration in this area, as evidenced by the proliferation of startups. However, I am concerned that there is still a strong concentration in certain countries and ecosystems, probably due to the strong presence of foreign investors. I am not saying that this is bad in itself, but it does not really allow the development of a specific African approach. What are your thoughts on the state of tech in French-speaking Africa? Can you talk about the key trends in this region, and how Digital Africa is contributing to the success of startups? What I find interesting in French-speaking countries is that there has been a fairly rapid ecosystem approach, whether in Tunisia, Senegal, Côte d’Ivoire, Rwanda, Niger, or Gabon. That is to say that all the players in the ecosystem are mobilised to help startups emerge. So it’s not a purely private sector approach. The startup acts in Tunisia and Senegal are good examples of how public and private sectors can work together to support entrepreneurship. The startup acts provide co-built legal frameworks that make it easier for startups to operate, and they also include funding for public-private partnerships that support startups. These partnerships have helped to create a more inclusive environment for entrepreneurship and have resulted in the growth of a number of successful startups in both countries. In Nigeria and Kenya, private initiatives are more common, and they are often financed by foreign investors. However, these projects often lack the necessary regulatory and ecosystem frameworks to support their success. Our method is based on a conviction: for the tech and innovation ecosystem to function optimally, it is essential to mobilise all players involved. We are convinced that effective cooperation between institutions, funding sources, skill experts, research institutions, and startups is essential to achieve this goal. We believe everyone has a role to play in creating a favourable environment for innovation and business growth. After all, Silicon Valley is a prime example of how billions of dollars in investment can help to nurture private initiative and innovation! What are some of the challenges tech startups face in French-speaking Africa that those based in Nigeria, Egypt, Kenya, or South Africa don’t have to experience? In French-speaking Africa, access to financing is limited due to a lack of risk culture, which can be a major obstacle for investors wishing to establish themselves in this region. In addition, cultural differences and perceptions of entrepreneurship represent a major challenge for local players. Education is still a roadblock to unlocking entrepreneurship as a vocation. For example, social success is often associated with a job in civil service, rather than starting a business. In addition, the availability of financing is limited due to a lack of risk culture, which can be a barrier for investors venturing into this region. In English-speaking Africa, business angel networks are a key source of financing for startups. These networks bring together wealthy individuals who are willing to invest in early-stage businesses. The networks provide entrepreneurs with access to capital, as well as mentorship and support. This helps to create a vibrant entrepreneurial ecosystem in English-speaking Africa. Education and training are also challenges in French-speaking Africa, where the teaching of entrepreneurial skills is often less developed than in other parts of the continent, such as Kenya or Rwanda, where learning to code is now mandatory in elementary school. What are some of the most exciting accomplishments or projects that Digital Africa has undertaken recently, and how have they impacted the lives of people in specific cities in Africa? At Digital Africa, we are very proud to serve our users by providing them access to skills, data, fundings, as well as speak for
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6 latest Apple products announcements 2023
Apple’s annual developer conference got underway, bearing exciting news for Apple lovers and enthusiasts. The keynote address contained announcements of new Macs, improvements to the iOS 17, and also the long-awaited introduction of Apple’s new mixed-reality headset. One of the most significant absences was updates about any iPhone release, which would probably be a sad one for Apple lovers who’d been anticipating the beauty and power of a likely iPhone 15. However, here, you’ll find information about the 6 latest Apple products announcements made at WWDC in 2023. 1. After about 7 years of development the Apple AR/VR Headset has been announced Image Credit: Apple Number one on the list of the latest Apple products announcements is the Vision Pro. Apple unveiled the Apple Vision Pro, a brand-new category of computer. You may incorporate digital material into the environment around you using this new headset. The Vision Pro seeks to transform how we connect with Apple devices or interfaces by providing controls that let you engage your hands, eyes, and voice to interact with digital material. Image Credit: Apple It is intended for the spatial operating system to establish another dimension of physicality for you. In other words, you can move objects around in your view naturally by using interactive windows’ shadows and shading. You can immerse yourself in settings that function like VR even though you can exist entirely within the one you’re naturally in. Apple is also putting effort into Apple Vision Pro’s entertainment integration. This will apply to 3D movies and Apple Arcade games on the system. Also, Disney+ will be accessible on the Apple Vision Pro beginning immediately when it launches for sale. The Apple Vision Pro will be marketed and sold in 2024 for $3,499. When it officially launches, Apple lovers will be able to learn more about it and see live demonstrations in Apple Stores around the world. 2. 15-inch MacBook Air Image Credit: Apple Alongside the VR headset, the 15-inch MacBook Air joined the latest Apple products announcements. The computer, an update to the 13-inch model, was officially unveiled at the WWDC 2023 event. The laptop is one of the slimmest of its kind with it being just 11.5 inches thick. In addition, it has a 15-inch screen, an M2 microprocessor that powers a display with a brightness of 500 nits, a 1080p camera, and six speakers. Image Credit: Apple Next week, the brand-new Macbook Air will be offered for $1,299. Along with the launch of the new 15-inch model, the price of the 13-inch MacBook Air will be reduced by $100. 3. The imminence of Death Stranding Director’s Cut to Mac It was also revealed that Death Stranding Director’s Cut would soon be accessible through the Mac Store as part of Apple’s renewed emphasis on gaming on Macs. Additionally, Kojima mentioned that his group would be trying to add more titles to the platform in the future. And this surfaces as the third most significant latest Apple products announced at the WWDC. 4. Mac Pro with M2 Ultra Image Credit: Apple As part of their latest products, Apple revealed that the Mac Pro will receive an update with the new M2 Ultra CPUs. This improves video editing performance and offers PCI expansion and customisable features. The Pro will be able to accommodate up to 6 monitors, just like the Mac Studio. The cost of the Mac Pro will be $6,999, which is pretty pricier than the previous model from 2019. 5. Mac Studio with M2 Ultra Image Credit: Apple The M2 Max chip for Mac Studio offers an improvement of up to 25% over the M1 Max processor. Apple also unveiled the new M2 Ultra chip as part of their latest products. This chip offers an even greater 30% improvement over the M1. Faster video editing, rendering, and improved 8K streaming are all benefits of this new technology. The new Ultra chip is perfect for the best creative experience because it can support up to 6 monitors. Starting from June 14, the Mac Studio will be available for $1,999 and you can make purchases through the Apple store. 6. New Apple software updates New features for iOS 17, iPadOS 17, MacOS Sonoma, and other software were a key part of WWDC 2023. The Apple iOS 17 The most significant upgrades to iOS have been made to the messaging apps. This contains catch-up arrows, swipe to reply, live voicemail, and search filters within messages. Additionally, stickers received an upgrade with improved messaging integration. Additionally, there is a deeper connectivity with your communications and location information. In addition to the communication apps, Apple also unveiled Name Drop, a new method for quickly exchanging contact details via AirDrop. A brand-new app called Journal was also revealed, and it will go live later this year. Journal will be an integration of recent photos, events, and places. Additionally, a new StandBy mode is available to provide an always-on display when your phone is charging and facing the other direction. Clocks, app notifications, and other features are available in a variety of formats on this screen. MacOS Sonoma Enhancements to screensavers and widgets are the first updates to the new MacOS. The latest version of Mac OS X allows for even greater widget interactivity, much like the latest version of iPadOS. You can put these widgets wherever you choose on the desktop, and they will change colour to blend in when they aren’t in use. The compatibility between iOS and OS X applications will improve. Image Credit: Apple In addition, a new Game Mode has been integrated into MacOS to improve the overall performance of your Mac when playing games. Moreover, the decreased audio delay makes this a better fit for use with AirPods. Along with the new mode, Metal 3 will simplify the process of porting games to Mac. To coincide with Sonoma, Safari has also been updated. This entails enhancing private browsing by locking pages while you aren’t using them to prevent tracking. In addition, there
Read MoreWeb3 startup Mara fires its marketing department as it shifts focus from acquiring new users
In May, Web3 startup, Mara fired its marketing team, months after laying off 50% of its staff. Sources claim that the most recent layoffs are unrelated to money problems. Web3 startup Mara has laid off employees twice in the past six months. The first layoffs in December, which coincided with the resignation of a co-founder Kate Kallot, were attributed to the collapse of FTX, one of Mara’s major investors. But the second round of layoffs, which happened last month, is contentious. While one report described a pattern of frivolous spending, a source told TechCabal that the startup restructured the team with a renewed focus on existing users, launching other projects that will drive crypto adoption in Africa. Former employees who spoke to TechCabal said the first layoffs were about cost reduction. A source with knowledge of the situation told TechCabal, “It was obvious that the layoff in December was a scramble to save some money because after laying off nearly half of the staff, [Mara] slashed salaries the next month. The slashes varied too, ranging from 10-50% reduction.” There were reasons to be concerned. The first layoff in December came only six months after Mara announced a $23 million fundraise. The seed raise—the largest for a web3 startup then—would help Mara launch Mara Wallet, a crypto exchange for users to buy, send, sell, and withdraw fiat and crypto assets. It put Mara in competition with startups like Yellow Card. The company claimed that its unique selling position was Mara Chain. This layer-1 blockchain would let Africans build decentralized applications—Mara Chain was scheduled to launch in Q4 2022. But the startup didn’t launch Mara Chain as planned, and it is unclear what the progress of that project is. More layoffs at Mara in May The recent layoffs happened in May, and a source told TechCabal about 6 people were affected. “The cuts mostly affected external-facing roles such as marketing, community management, and communications—roles that involve external communications and customer or user acquisition,” the source said. According to another source, however, more people in other departments may have been sacked too. But it appears that the startup has not frozen hiring. A source disclosed to TechCabal that the company added several engineers to the team despite the layoffs. Mara did not respond to a request for comment at the time of publishing this article. What do you think about our stories? Tell us how you feel by taking this quick 3-minute survey.
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How to apply for the SRD SASSA R350 grant 2023
The Social Relief of Distress (SRD) grant offered by the South African Social Security Agency (SASSA) aims to provide temporary assistance to individuals and families facing financial hardship. If you are in need and meet the eligibility criteria, applying for the SRD SASSA grant can be a crucial step towards obtaining financial support. In this comprehensive guide, we will walk you through how to apply for the SRD SASSA R350 grant, ensuring that you have all the necessary information to complete your application successfully. 1. Understanding the eligibility criteria Before on how to apply for the SRD SASSA R350 grant, it is crucial to determine if you meet the eligibility criteria for the grant. Currently, the primary eligibility requirements include: a) Citizenship: You must be a South African citizen, permanent resident, or a refugee. b) Age: You should be between the ages of 18 and 60 years. c) Income: Your household income should be below a certain threshold determined by SASSA. d) Unemployment: You must be unemployed and not receiving any other government financial assistance. e) Asset limits: You should not possess any significant assets or investments. f) For asylum seekers: You must be a person seeking asylum in South Africa and in possession of a current section 22 permit or visa. Other eligibility points include the following: You may need to be a holder of a South African Special Permit (for either the Special Angolan Dispensation, the Lesotho Exemption Permit Dispensation, or the Zimbabwe Exemption Permit Dispensation) as an immigrant in the country. You need to have a monthly income of R624 or less to pass the means test. Clearly, you do not have sufficient resources to maintain yourself. You are not eligible to receive any other government assistance at this time. You cannot be an Unemployment Insurance Fund (UIF) contributor or recipient. You must not unreasonably decline offers of work or schooling. NSFAS (National Student Financial Aid Scheme) stipends are not eligible for consideration. Make sure to review the eligibility criteria thoroughly to confirm if you meet the requirements before proceeding with the application process. 2. Gathering the required documentation to apply for the SRD SASSA R350 grant To complete your application successfully, you will need to gather specific documents that serve as proof of your eligibility and personal information. Here is a list of documents you might need: a) Identification: A valid South African ID, passport, or asylum seeker document. b) Proof of residence: A utility bill or any document indicating your current address. c) Bank statement: A recent bank statement reflecting your income and expenses. d) Proof of unemployment: Documents such as a retrenchment letter or a letter from your previous employer confirming your unemployment status. e) Income and expenses: Any supporting documents that show your current financial situation, such as payslips, invoices, or proof of other sources of income. It is essential to gather all the required documentation and ensure that they are up-to-date and accurate. Please note that these document requirements may change. Therefore, always ensure you check the SAAS website for updates on documentation requirements. 3. Completing the online application Continuing on how to apply for the SRD SASSA R350 grant, you can complete an online application via the SASSA website or through the SASSA mobile application. Follow these steps to complete your application: a) Visit the SASSA website: Go to the SASSA official website (www.sassa.gov.za) and navigate to the SRD grant application section. b) Create an account: If you don’t already have one, create an account by providing your email address and creating a secure password. c) Fill in the application form: Provide accurate and detailed information in the application form, including personal details, contact information, and financial information. d) Upload supporting documents: Scan or photograph the required documents and upload them as attachments in the designated sections. e) Review and submit: Review your application carefully, ensuring that all information and documents are accurate and complete. Click the submit button to finalize your application. 4. Following up after you apply for the SRD SASSA r350 grant Once you have submitted your application, it is crucial to monitor its progress and stay informed about any updates. Here are a few steps you can take to follow up after you apply for the SRD SASSA R350 grant your SRD SASSA grant application: a) Check your application status: Log in to your SASSA account and check the status of your application regularly. This will provide you with updates on whether your application has been received, processed, or approved. You can read how to check your status here. b) Contact SASSA: If you have any concerns or queries about your application, contact SASSA directly through their helpline or visit your nearest SASSA office for assistance. c) Be patient: The application process may take some time due to the high volume of applicants. Remain patient and allow SASSA to review your application thoroughly. Final thoughts on how to apply for the SRD SASSA r350 grant Applying for the SRD SASSA grant can offer a temporary lifeline for individuals and families facing financial hardship. By understanding the eligibility criteria, gathering the necessary documentation, completing the online application accurately, and following up on your application, you can increase your chances of receiving the assistance you need. Remember to stay informed, be patient throughout the process, and reach out to SASSA if you need any assistance.
Read MoreWhy do African governments struggle with the digitalisation of public services?
While some African governments have embraced digital governance, the adoption rate is still very low. As the adoption of digital technology ramps up on the continent, African governments want to make their nations more efficient. Enter digital governance, the use of technologies by governments—or their agencies—to deliver better public services and improve accountability. Digital governance initiatives like e-government services, open data, and digital identification systems are still emerging in Africa. By digitising government processes, citizens can access government services—such as tax filings, business registration, health records, and electronic payments—from the comfort of their homes or offices, eliminating the need for long queues and reducing waiting times at government offices. Digital governance is off to a slow start in Africa Although a number of countries across the continent—like Rwanda, Kenya, and Ghana—are investing in digital infrastructure and services, progress is uneven. A significant roadblock has been low internet penetration across the continent, with only around 28% of the population connected. Mohammad J. Sear, a futurist and digital government senior advisor, maintains that while access to quality internet remains a key challenge, it goes beyond that. “The average cost for mobile broadband in many [African] countries remains very high compared to the average per capita income. This makes it very difficult for people to access digital services if they are available. Another challenge relates to institutional capabilities and capacities. The low-income level of African countries is a limiting factor on the required investment for digital governance,” he said. Victor Famubode, a digital governance specialist, adds that there are issues around policies and regulations, infrastructure, resources, and technology. “It is important to note that digital governance in Africa is evolving because leaders are gradually trying to understand this field. The reason is that it’s a bit nascent in this part of the world because we are still used to old ways of doing things. There is a lot of work that needs to be done around creating awareness in that space,” he told TechCabal. Why digital governance is important for Africa Busayo Oluwadamilare Morakinyo, Lead at Creative Ideation Hub UK, says digital governance is a global conversation, and Africa can’t afford to be left out. He said, “Because Africa wants to catch up with the rest of the world, more governments have opened up to digital governance. You can’t speak about this without returning to social media, which has helped democratise information and propelled citizens to put more pressure on the government. Whether governments like it or not, they must join in the open governance conversation. Because most African governments want to be perceived as global, they tend to tilt towards digital governance.” He, however, noted another challenge is a generational disconnect between African leaders and their citizens. Despite being home to the youngest population on earth, the average age of an African president is reportedly 62. “A chunk of the people in government don’t understand that the 21st century is full of digital natives, and the fastest way to engage with citizens is when you can reach out to them over the internet. That generational disconnect has made it difficult for these people [African leaders] to engage freely or to be in the public domain,” Morakinyo told TechCabal. What lies ahead? Looking ahead, digital governance has the potential to drive continued growth and development in Africa. The continent can build a more inclusive digital economy with increased investment in digital infrastructure, regulatory frameworks, and skills development. As the Asian Development Bank Institute noted in this report, successful digital governance is conditional on the level of digitalisation to support two-way communication among stakeholders—the government and the private sector. In his 80-page manifesto, Nigeria’s new president, Bola Ahmed Tinubu, promises to prioritise implementing government digital services. Morakinyo says for this to work, issues around internet penetration, digital awareness, and investment in skills development and technology must be addressed. “I want to be able to see the business of government move strictly to a hybrid nature—offline and online. We need a digital civil service where citizens can engage with government institutions and track their engagement. As a matter of fact, the incoming government should have a policy that sufficiently addresses these issues,” he explained. Sear believes that for digital government to truly work in Africa, African governments must set the tone regarding strategies and policy frameworks. “The starting point is to develop a long-term vision with a phased approach to execution. Also, the immediate focus should be building core and fundamental institutional capabilities. The third would be to learn from global best practices by collaborating and tapping into the experiences of countries investing in digital governance. Finally, the governments should co-create and collaborate with people, businesses, and other stakeholders,” he told TechCabal. What do you think about our stories? Tell us how you feel by taking this quick 3-minute survey.
Read MoreBehind the innovation: The silent mental wellness battle South Africa’s startup ecosystem
Mental health challenges are a largely ignored issue in the South African tech startup ecosystem According to research by the University of Western Cape, South Africa has one of the highest startup failure rates in the world, with 70% to 80% of businesses failing within five years of commencing operations. In addition to this cloud of failure constantly hovering above entrepreneurs’ heads, a joint research between the University of California and Stanford University also revealed that entrepreneurs generally have lower initial earnings, lower earnings growth, lower long-term earnings, longer work hours, fewer weekends and holidays, more responsibility, chronic uncertainty, and greater personal risk and struggle. Considering all these factors, the decision to become a startup founder seems ill-advised. However, economic growth is driven by the jobs created by founders who brave the unfavourable factors. According to recent data, small and medium enterprises, including startups, create at least 55% of all employment opportunities in South Africa. With the mental pressure of entrepreneurship clear and the benefits that these risk takers bring to the economy well established, more attention should be paid to protecting their mental wellbeing. According to Will Green, director at Co.lab, the reason the topic of mental health does not come up in conversations about the South African tech ecosystem is the seemingly taboo nature of the unglamorous aspects of entrepreneurship, such as failure. “In our ecosystem, failure and challenges are not considered a badge of honour. So it becomes hard for entrepreneurs to discuss these, despite the frequency by which they happen. The sad thing is that the more these are not discussed, the less successful entrepreneurs we are going to have because everyone will keep succumbing to the same issues,” Green told TechCabal. The loneliness of the entrepreneurship path is reiterated by founders who have faced mental health challenges in their journey. One of these is Zwelakhe Gila, a South Africa-born founder who created Chommie Bites, one of the first ecommerce startups in Namibia. According to him, the challenges were created by the pressure he put on himself to succeed. “As an entrepreneur, you find motivation in the work you do and the wins that you bag in your journey. But the problem is that those wins are rare when you are starting off. What’s more common are the failures and I feel like we don’t prepare ourselves mentally for those. The pressures and expectations that you put on yourself and are placed on top of you become too much to handle,” Gila explained. According to Zimkita Nogela, founder of Adored, a digital gift cards startups, one of the reason the mental health issue has not been discussed much in the ecosystem is that the ability to function through anxiety, stress, depression, and other conditions is seen more as a badge of honour than a challenge that needs to be addressed. “A lot of entrepreneurs or founders pride themselves in being able to function under intense pressure. But that’s definitely not healthy in the long run, because it leads to a lot of burnout. What is even more painful is that coming out of burnout is quite an undertaking. Having been through burnout myself in the past, it took me quite a long time to get out of that and I wish I could have addressed it before it took hold,” Nogela told TechCabal. According to Raeesa Gabriels, founder of Level Finance, a fintech startup focusing on financial wellness, founders of colour seem to be disproportionately affected by mental health issues like stress, depression, and anxiety. “Most of the mental health issues stem from financial issues in business. Unfortunately, you find that founders of colour do not have families and other immediate forms of financial alleviation when things get tough. Additionally, it is a well established fact that founders of colour do not get as much financial backing as other groups. This creates a situation whereby founders are pretty much on their own when it comes to facing business changes head on, which further debilitates their mental well being,” Gabriel told TechCabal. The funding data available backs Gabriel’s assertion. According to data from dealbase.africa, a venture funding tracking platform, only 45% of funding went to founding teams with at least one non-white founder in 2022. For context, 75% of formal SMEs, including tech startups, were owned by black founders, compared to 37% by white founders. Despite the challenges that face the fight against mental challenges, there are initiatives in the South African ecosystem tackling the issue head on. One of these is the South African Breweries (SAB) Foundation’s entrepreneurship support program which assists founders, especially those from underrepresented communities, to create sustainable businesses. During the COVID-19 pandemic in 2020, the foundation started a program to help founders deal with the challenges brought about by the tough business climate. The support comprised both financial and mental health support. This support was so in demand that the program was extended beyond the pandemic, a clear signal of the extent of the mental health challenges among South African entrepreneurs. “We launched what we call the “Restore” program to support entrepreneurs so that they can be able to effectively run their businesses. We designed it in a way such that they could attend group sessions and the group conversations were really valuable, because during that process, the entrepreneurs learnt that they were not on their own. We also connected the entrepreneurs to qualified therapists who engaged with them in one-on-one sessions,” said Itumeleng Dhlamini, social innovation specialist at the SAB Foundation. Dhlamini further explained that the initiative was continued beyond the pandemic because they realised the value and need for such a service to entrepreneurs who could not access perks like therapy. “We realised that there is a real need for this kind of initiative going forward. Additionally, we also received feedback from entrepreneurs who really wanted the program to continue. And as you know, entrepreneurs who are still at the early stages of their businesses most of the time
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👨🏿🚀TechCabal Daily – Senegal blocks internet access
Lire en français Read this email in French. 6 JUNE, 2023 IN PARTNERSHIP WITH Good morning Apple has announced its own virtual reality headset, the Apple Vision Pro. The headset will allow you to switch between apps, facetime and even present screens during video calls. Apple is marketing the headset as the first headset computer which means you’ll be able to control Macs via the headset. The price tag? A whopping $3,499. In today’s edition Senegal blocks its internet Chipper Cash’s third round of layoffs Showmax gets hacked TC Insights: Africa’s data privacy concerns The World Wide Web3 Event: The Moonshot Conference Opportunities SENEGAL SHUTS DOWN INTERNET AMID RIOT Senegal has shut down its internet again. Starting Thursday, several social media platforms, including WhatsApp, Instagram and YouTube, started facing serious access restrictions in Senegal. On Friday, interior minister Antoine Diome acknowledged the blockages, citing “the dissemination of hateful and subversive messages on social networks”. What happened? Senegal’s government cut access to mobile internet services following violent protests that began on Thursday after an opposition leader, Ousmane Sonko, was sentenced to two years in prison after a prolonged legal dispute since 2021, which began with accusations of rape and the issuance of death threats by a former beauty salon worker. His supporters claim the prosecution was politically driven and he denies any wrongdoing. By Sunday, Reuters reported that Senegal’s minister of communications, telecommunications, and digital economy issued a statement, expanding the outage to include mobile internet data in specific areas and at certain times. NetBlocks, an internet observatory, has analysed traffic data and also confirmed the suspension of mobile internet access in Senegal. Zoom out: In 2021, TechCabal reported that Senegal blocked social media apps after the death of a protester in a scuffle with police. This is the second time the West African country is shutting down its internet connection in three years. 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. A THIRD ROUND OF LAYOFFS FOR CHIPPER CASH Last week, fintech Chipper Cash underwent its third round of layoffs, resulting in the departure of the company’s chief operating officer (COO). How many people were laid off? In its third round of layoffs within a year, Chipper Cash let go of a minimum of 10 employees. A source told TechCabal that global chief operating officer Alicia Levine and Kenyan country director Leon Kiptum were part of those affected by the layoff. Chipper Cash acknowledged the layoffs in an email communication with TechCabal, but refrained from disclosing the precise number of employees impacted. Reason for the layoff: A part of Chipper Cash’s email to TechCabal also stated, “As part of our previously announced restructuring as an organisation to focus on core products and markets, we recently made redundant a very small number of roles across our global teams.” Previous layoffs: In December 2022, the company had its first layoff and fired over 50 of its employees. At that time, the reasons behind the company’s decision to downsize its workforce remained unclear. Barely two months after, in February 2023, Chipper Cash had a second round of layoffs and made the decision to terminate more than 100 employees, impacting around a third of its workforce, justifying the layoffs by citing ongoing economic difficulties and the uncertain outlook for the future. MORE FROM TECHCABAL The Next Wave: Can Africa’s tech ecosystem survive its data gap. Ask An Investor: Flourish Ventures wants to create systemic change and build fair financial systems for Africa. DATA BREACH AT SHOWMAX Another day, more data stolen by hackers. Per South African tech publication MyBroadband, hackers recently got into MultiChoice’s streaming platform Showmax and made public over 27,000 usernames and passwords of people who use the platform. MultiChoice confirmed that the usernames belong to their customers, but added that they have automatically logged the affected customers out of their Showmax accounts. The streamer went on to ask the hacked subscribers to reset their passwords. On the other hand, MultiChoice also claims that the data wasn’t taken from its platform. MyBroadband suggests that the usernames and passwords were taken by criminals using a method called bruteforce attack. Interestingly, in 2022, a report showed that Showmax is vulnerable to bruteforce attacks because it wasn’t limiting how many times someone can try different passwords. More data breaches: MyBroadband reports that upon investigating the matter, it discovered another data breach potentially affecting 67,000 Everyshop customers. Additionally, they discovered that a popular group known for leaking data had shared a second database containing the information of over 500,000 JD Group customers. The information included contact details inclusive of email addresses, gender, tax and VAT numbers, ID numbers as well as country, state/province and physical addresses of individuals who made purchases at its subsidiary stores. JD Group has acknowledged the breach and placed a notice about the “Data Security Incident” on the affected stores’ websites. TC INSIGHTS: AFRICA’S DATA PRIVACY CONCERNS As the wave of tech disruption sweeps across Africa, the number of people with internet access is increasing—at the rate of 39.7%, as of 2021. However, this rise in connectivity also brings the risk of data breaches and compromised privacy without users’ consent. For example, according to Surfshark’s global study, Nigeria ranked 32nd among the most breached countries in Q1 2023, with 82,000 leaked accounts. Africa’s status as a huge market for tech innovation has led global tech firms to exploit the weak data protection laws of African countries to build extensive databases for advancing their products and services. Unfortunately, many African countries lack comprehensive legal frameworks for data protection, leaving the personal information of internet users as a valuable commodity in the global market. TechHive Advisory‘s report reveals that out of the 54 countries in Africa, only 35 have privacy laws, and among them, only 25 have data protection authorities. However, there is
Read MoreWhat is Branch Pro, and why is the lender keen on becoming a full-fledged neobank?
Branch bought a microfinance bank in Kenya in 2023 after it secured a licence to operate a bank from the central bank of Kenya. Now, Branch operates as a neobank with additional products and services. In the future, its customers may be able to access business loans. Loan apps have been having a tough time in markets such as Kenya, and regulators have since instituted laws against personal data abuse, among other measures. These measures include policing cases of harassment for customers who cannot repay their loans and mandating that loan companies must have physical offices. The laws also require that digital credit companies obtain a licence from regulators. To this end, licensed digital apps have dropped from over 200 to just under 40. Other players, such as Branch, have since pivoted beyond loan services to further appeal to customers. Launched in 2016, digital lender Branch says it is now a neobank. This is coming on the heels of a revamp of its product portfolio aided by the acquisition of Century Mfb, a microfinance bank in Kenya. Branch, which operates in Kenya, Tanzania, Nigeria, and India, revealed that it has since spread its wings and looks forward to participating in the digital banking sector that has since been home to other neobanks like Fingo and NCBA Loop, a neobank offshoot by NCBA Bank. According to Branch founder and CEO Matt Flannery and the company’s managing director for East Africa Rose Muturi, the platform has been eyeing a bigger market beyond its basic online loans. For this reason, it acquired a microfinance licence from the Central Bank of Kenya (CBK), which allowed it to purchase Century Microfinance. Afterwards, Branch embarked on a journey to make its products and services fully neobank-based by closing most of Century’s physical branches across Kenya. At the moment, only one banking hall exists, which serves some enterprise customers it inherited from Century. According to MD Rose Muturi, while Branch acquired a banking license from the CBK, the regulator is yet to develop a regulatory framework for neobanks. For the moment, neobanks are mostly under ordinary banking laws, but Muturi hopes the CBK will formulate different regulations for neobanks. Branch offers three primary products: loans, savings, and payments to Branch-specific tills. Branch also allows customers to send funds to each other for free, saving them additional costs that arise from transferring funds to another mobile money wallet such as M-PESA. Using AI to manage borrowing risk Similar to other loan apps such as Tala, Branch, which has a customer base of 4.5 million customers, leverages AI tools, machine learning and algorithms to determine credit scores. These technologies are, however, not new. Still, AI has been gaining momentum over the last couple of months, thanks to its powerful feature sets and availability to millions worldwide. In this case, Branch leverages AI algorithms to evaluate the creditworthiness of borrowers. According to Branch CTO Anshul Agrawal, the tools analyse various data points, such as credit history, to assess the likelihood of loan repayment. Also, AI algorithms can analyse borrower profiles, financial data, and preferences to provide personalised loan recommendations. This is the reason different applicants have different recommendations; while those with poor scores are rejected, they can improve their repayment profiles for future credit. Branch Pro Following its transition into a neobank, Branch now has enterprise customers, such as businesses that may want facilities such as loans. For this reason, the lender has Branch Pro, which is available only in India, for now. Branch Pro offers loans to businesses. It uses different data sources and models to determine if a business qualifies for credit, such as bank statements. Although Branch reps cannot say exactly when the product will launch in other markets, there is likely a plan to expand it beyond India. Branch now owns an online bank in Kenya, with millions of customers who may want additional services such as business loans. The lender has since disbursed 16.4 million loans to 3.1 million customers in Kenya, with a cumulative value of KES 5.2 billion ($37.5 million). What they said “As the first neobank in Kenya, Branch International continues to transform the banking landscape through its innovative use of AI technology to implement a risk-based lending model that allows it to effectively meet the credit needs of all its customers, meeting customers’ diverse financial needs. By reducing credit risk with AI algorithms, Branch International ensures responsible lending practices that benefit both individuals and the broader economy,” said Muturi. What do you think about our stories? Tell us how you feel by taking this quick 3-minute survey.
Read MoreFrom scarcity to oversupply: The tech talent market does a 180
Capital isn’t the only ingredient that moves a startup from concept to success. The other is people. Without high-quality founders and the right team to support them, a venture will never move from pre-seed to the graduation of Series A. However, much like the Great Reset taking place on the continent with investment harder to come by, a different reset has happened in the talent market. Post-COVID, African tech talent benefitted broadly from a job market favouring workers. A high-quality developer from Abuja could be based in Nigeria and work for a large US tech company that pays in US dollars. Sounds great, right? Not too fast. The talent market has done a 180 COVID-19 forced reluctant global employers to experiment with remote work, but they learned quickly how remote work can be used to suit their needs. Many have since returned to an in-office model, but the lessons remain. If a ramp-up in internal capacity is needed quickly, the remote talent place is always a good place to start. However, as we move into Q3 and Q4 of 2023, the talent marketplace has changed again. The tougher macroeconomic environment has forced global employers, including tech giants like Google and Meta, to cut their workforces, with Africans bearing the brunt of these layoffs. Meta fired its entire content team in Kenya—a case that ended up in court—, while Twitter made large parts of its Africa team redundant, with some workers having only joined weeks before. In the market, other large employers with skilled tech workers on their books have felt the pinch, with workforces reduced across sectors to cut costs. The result is a one-two punch for the ecosystem. Startups are finding it harder to raise funds, but at the same time, the local talent they need to take that next step is suddenly back on the market. The worker market has done a 180. We are now in an employer’s market. In Nigeria, for example, the tech talents that left the country as part of the Japa wave in search of better working conditions and pay are not returning. There are exceptions, but for the majority, the journey is a hard one, and they do not want to sacrifice hard-earned gains. It’s a similar story across other markets in West and East Africa. What has changed is that even though these skilled tech professionals now live overseas, they are open to work offered in their home countries. The problem these workers now face is that the salaries they need to live abroad are not provided by local companies, with large corporations the exception. Even more importantly, hiring employers are dedicating more time to due diligence because they don’t want to bear the costs of a poor hire. They are also searching for candidates who have the potential to grow out of the roles they are hired for. Training internally is far cheaper than going to the market, even in a talent market that favours the employer. That means a preference has emerged for locally-based workers because these workers are easier to monitor, manage and pay than overseas candidates. The post-COVID salary hangover has arrived A different consequence of the post-COVID-19 pro-worker talent market is that salaries increased at rates not seen in years. Local firms raised salaries, as did their international competitors. Foreign firms held the advantage because of their deep wallets and the dollar exchange rates, allowing them to increase wages quickly and even offer payment in US dollars, placing extreme pressure on tech employers in East and West Africa. So far, in 2023, this salary bubble has burst. The salaries that tech workers expect to be paid are out of sync with what the market is willing to offer, with inflation and high-interest rates eating into employer margins. International and local employers in the tech sector are tightening their belts wherever possible. The candidates who understand these market dynamics and how best to navigate them have the best opportunity to find employment or re-employment in the tech sector and ecosystem. For example, there were CTO roles in Nigeria that were open for months on end in 2022. Now, employers can close applications within a few weeks because they have many available candidates to choose from. As the full effects of the interest rate cycle bear fruit in the coming quarters, competition in the tech talent market will only become more fierce. That doesn’t mean opportunities do not exist, but employers are wiser than they were 12 months ago, while tech workers must adjust to the macro dominating their respective sectors. Ololade Odunsi is Talent Acquisition Lead at Founders Factory Africa.
Read MoreAmidst sanctions, this AI chatbot is offering Zimbabweans an alternative to ChatGPT
To address his country’s barred access to OpenAI’s famous generative AI chatbot ChatGPT, Zimbabwean developer Kuda Musasiwa and his team have built alternatives—ZivAI and DanAI. These AI chatbots offer capabilities such as image and PDF generation, e-commerce, etc. Access to ChatGPT is barred in Zimbabwe as a result of the sanctions against the southern African nation by the US government and European Union. TechCabal caught up with Musasiwa to get more info on the chatbots, ZivAI and DanAI, the motivations behind building them, and his thoughts on the future of generative AI tools on the continent. Please tell us a bit more about ZivAI and the problem you are trying to solve through the chatbot Kuda Musasiwa: Before building ZivAI, I was leading the biggest online retail store in Zimbabwe called Fresh In A Box. At Fresh In A Box we leveraged a lot of AI technologies, especially for our customer service side of things and one of these technologies, called Shamu and then renamed Lucille, eventually became ZivAI. We built this bot because OpenAI had blocked Zimbabwe from accessing ChatGPT because of all the sanctions so we figured, using the open source API, we could build an alternative for our people. Leveraging our expertise in e-commerce, we were able to extend the chatbot’s functionalities beyond what ChatGPT has. For example, we have an image generator, PDF generator, news, and e-commerce capabilities, all baked into the chatbot. We have also integrated a store into the platform which will be onboarding vendors in Zimbabwe and across the region this week. ZivAI is basically a co-pilot for Zimbabweans and we have another product, DanAI, which seeks to cover the rest of Africa and do its co-piloting role in a more relatable African context. What was the motivation for building the chatbots? KM: Unfortunately, Zimbabwe is a sanctioned state so companies like OpenAI do not bother trying to launch their products here. Additionally, we don’t have payment gateways like Stripe which work here so that’s another challenge for our people if they want to use these global products. So as entrepreneurs, it was a problem or challenge that we wanted to solve. We then set out to build our own payment gateways to facilitate transactions and we incorporated abroad to have access to some developer tools we need to build a really strong product. In terms of challenges, which ones were most pressing when you were building the chatbots? KM: Honestly, I wouldn’t say we had any challenges. Our development team is incredibly world class and we are really good at what we do as evidenced by our track record. As Zimbabweans, the only thing we need is access and unfortunately, as a result of the aforementioned sanctions, sometimes we do not get this access but we always try to find a way. For example, a simple thing such as paying for a GitHub account or API access using a debit card is not as straightforward in Zimbabwe so we always have to find a way around that, but when it comes to expertise, I think we have that part well on lock. What traction have the chatbots garnered so far? KM: We have peaked at over 18,000 users on the platform at some point in the last few days. Additionally, we have authorised over 19,000 logins via Linkedin and Twitter. For the time being, we are not allowing Google and Facebook logins because we are trying to ensure that the traffic coming to the site via those platforms, which we anticipate will be a whole lot, does not throttle user experience. But we will be allowing access via those platforms very soon as we build up the resiliency of the platform. We have also now uploaded the application onto the Apple and Android stores to make sure that people can have this on their phone, seeing that going to a website might not be as sticky when 90% of people access the internet via their mobile phones. What are your thoughts on the advancement of generative AI chatbots in Africa? KM: All the chatbots that we have right now in Africa and in the world are the worst that they can ever be right now because every single day, they get superior and they get better. So I want to be clear, this is the new way that computing is going to be done. This is the new way productivity is going to be done. And as Africans, we have a choice. Do we sit back and watch the world develop around us and not participate? Or do we jump in at this particular point, and make it a point that we are a part of the conversation? Our biggest goal is to make sure that we have our own versions of these technologies that speak our languages and think like we do, hence representing us well in the international space. Interview has been edited for clarity and length
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